Sustainability at ME Elecmetal: Strategic Governance at a Global Level

In the various countries where ME Elecmetal operates production facilities, the majority of environmental and social sustainability input originates. These operations provide the essential information requested by customers to fulfill their ESG (Environmental, Social, and Governance) commitments.

As such, one key challenge for the newly established Global Sustainability Committee is to align criteria across global, regional, and local levels. Additionally, the committee aims to monitor key projects underway, thereby supporting the mining sector’s commitments, particularly those pertaining to Scope 3 Decarbonization and Carbon Neutrality.

 

Mining customers, as well as other target markets, consistently seek information on sustainability aspects crucial for their own performance. This includes metrics related to carbon emissions, energy consumption, water management, waste reduction, and transitioning to circular practices. They also prioritize insights into people-centric initiatives, supply chain sustainability, and community engagement practices.

While we have been proactive in making this information available, continuous improvements are being made in expanding the scope and enhancing the quality of data. Thus, through the Committee and integrated Governance, we are committed to:

  • Refining the selection of key performance indicators for periodic reporting to clients.
  • Implementing a robust Action Plan and achieving annual objectives effectively.
  • Mobilizing and engaging our entire value chain to enhance contributions and generate sustainable value.

Clients can expect to receive comprehensive information spanning various sustainability domains. This data will be aligned with international methodologies, standards, and our corporate definitions, all substantiated by concrete evidence. By adhering to this approach, we uphold transparency, foster accountability, and ensure alignment with stakeholder expectations. This commitment reflects our dedication to delivering reliable and credible sustainability insights, reinforcing trust and nurturing enduring partnerships with our valued clients.

ME Elecmetal has outlined its commitment to sustainability, which includes four pillars, commitments, objectives, management approaches, priority actions, and key sustainability KPIs. 

The image below summarizes the four pillars and their management approaches:

  1. The ME Elecmetal Signature: Our Values ​​are our hallmark, they guide our decision-making and the way we relate to each of our stakeholders. Respect for people´s dignity, the proactive search for excellence, responsibility and integrative part of our essence and are translated into a work style with high levels of loyalty and commitment.
  2. Our People: Our concern for the well-being of our team is inspired by our own history and the ME Elecmetal Signature. Respect for human dignity is the cornerstone of our values, driving our endeavors and ensuring a harmonious balance between outcomes and methods. It fosters holistic human development, and prioritizes customer focus, responsibility, sustainability, and a proactive search for excellence. 
  3. The Environment: The environmental protection is an urgent global challenge that we address in each of our operations and solutions delivered to our clients, which is why we are committed to being an active agent to promote GHG reduction and the development of more circularity in the industry by innovating and designing better alternatives and providing information about our environmental performance to the market. 
  4. Value Creation Connections: We are working to make mining sustainable by creating value throughout our chain as one of our purposes, and  innovation and collaboration are the essential principles to achieve this, along with our main stakeholders: suppliers, partners, clients and communities.

The sustainability initiatives for the 2024-2025 period are focused on several key priorities:

  1. Carbon Emissions Reduction: ME Elecmetal aims to measure carbon emissions across scopes 1, 2, and 3, setting reduction targets for each plant. This involves a comprehensive assessment of greenhouse gas emissions and implementing strategies to mitigate environmental impact.
  2. Talent Development and Diversity: A global program will be developed to foster talent within the organization, with a particular focus on encouraging and promoting the hiring of women. This initiative reflects a commitment to diversity and inclusion in the workforce.
  3. Indicator Integration: ME Elecmetal plans to incorporate various sustainability indicators that provide conclusive information, allowing for a track record and comparable basis. These indicators will be linked to material environmental, social, and governance (ESG) issues, enhancing transparency and accountability.
  4. Integrated Sustainability Reporting: The company will develop a periodic sustainability report for clients, advancing towards integrated disclosure that combines financial and sustainability performance. This reflects ME Elecmetal’s commitment to transparency and demonstrates its role as a global company dedicated to sustainability.

These priorities underscore ME Elecmetal’s commitment to sustainability, outlining specific actions and objectives aimed at reducing environmental impact, fostering diversity, enhancing transparency, and promoting sustainable practices throughout the organization.

ME Elecmetal is integrating sustainability into its corporate governance structure to effectively address commitments and objectives. This integrated governance is seamlessly embedded within the existing corporate framework, comprising the Corporate Committee, Business Committee, and ME Elecmetal Regions. Positioned at the heart of the business, this governance model offers a comprehensive perspective of ME Elecmetal, acknowledging key historical milestones, local challenges, and areas for improvement.

In 2024, the Sustainability Committee will be composed of representatives from various ME Elecmetal Regions, including South America, North America, China, Grinding Media, EMEA, and APAC. This composition ensures visibility and integration of both global and local perspectives in decision-making processes.

Moreover, to facilitate the implementation of specific and technical sustainability initiatives, Task Force Teams have been established. These teams, associated with existing global Committees, are tasked with executing, monitoring, and reporting on the progress of priority initiatives. They also play a crucial role in connecting sustainability with day-to-day management aspects.

To ensure regular oversight and reporting, quarterly sessions with direct reporting to the Business Committee have been established. Over time, the aim is for employees and the entire supply chain to embrace sustainability as part of their culture, integrating sustainable practices into their daily routines and contributing to the company’s sustainability goals. Through these efforts, ME Elecmetal is fostering a culture of sustainability and embedding it throughout the organization and its operations.

“Our commitment to sustainability is deeply ingrained in our identity, with people at the core: our employees, customers, suppliers, and communities. These stakeholders are the focal point of our Global Sustainability Committee’s efforts”,

Eugenio Arteaga, CEO ME Elecmetal Global.

 

“We have a significant environmental opportunity through systematic reduction of our carbon footprint. Our implementation of innovative technologies, efficient energy management, circularity practices, and collaboration within our supply chain position us as a strategic ally in helping our clients achieve their sustainability objectives”,

Constanza Echeverria, Global Sustainability Director.

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