country: chile - enaex · during 2013, enaex’s csr committee did a first exercise of analysis of...

Country: Chile

Sector: Materials

Year

2015

2013*

Program

Climate Change

Climate Change

Disclosure

96%

74%

Performance Band

B

C

Have implemented some climate change initiatives with partial success

Some activity with varied levels of integration into business strategy

* Not ofcial scoreFind more information at https://www.cdp.net/en-US/Pages/CDPAdvancedSearchResults.aspx?k=Enaex

SCORE

18/11/2015 Climate Change 2015 Information Request Enaex

https://www.cdp.net/sites/2015/92/48792/Climate%20Change%202015/Pages/DisclosureView.aspx 1/29

Climate Change 2015 Information RequestEnaex

Module: Introduction

Page: Introduction

CC0.1IntroductionPlease give a general description and introduction to your organization.

Enaex, a subsidiary of the Sigdo Koppers Group, has 94 years of experience in the explosives industry. Over the years, the Company has established itself as the world's thirdlargest producer of lowdensity ammonium nitrate as well as the leading provider of comprehensive rock fragmentation services for the mining industry in Chile and LatinAmerica.Ammonium Nitrate production and Blasting Services are both Enaex's Core Business and its strategic vision is being a company of excellence with high quality standards onits products and services and growing in a responsible way with their stakeholders and the environment. About ammonium nitrate production Enaex has an annual andcomplete sold production of 755,000 tons distributed among Chilean mining market and the exportation over 40 countries. Enaex started its internationalization process on 2009 and by today has local presence in Argentina, Colombia, Brazil and Peru. In order of achieving its vision of growthgiving a complete blasting service to its mining costumers Enaex recently bought the French company Davey Bickford, specialized on all type of detonators.All of Enaex's offices are ruled by the same principles and values in order of creating and project a solid corporate image. Enaex is currently composed by 1700 workers distributed among three Productive Plants located at the north part of Chile, 22 Services Plants installed inside the costumersite performing the complete blasting process; and in Chilean capital, Santiago, where the headquarter office is located. Enaex Vision is “Being the worldwide most prestigious company on high quality ammonium nitrate and related services” and the Mission goes according to it: a)Growingalong with our customers, supplying ammonium nitrate, related chemicals and highquality mining services b)Giving a Blasting Service regarding safety, reliability andinnovative with highest worldclass standards c)Having global presence with Latin America Explosives Market leadership d)Generating value for all its stakeholders e)Beingrecognized as company respectful to the environment and its local communities. Back staging this Mission and Vision Enaex has embedded four Corporate Values: 1) Taking care of Life anyplace, anytime. 2) Serving with Passion to our costumer 3)Accomplishing our Commitments 4) Living through Excellence. As many other companies, Enaex looks everyday for having high sales volumes of its products and services, reducing operational costs by optimizing and innovating itsproduction processes and large logistic service. Enaex, as a worldclass company, continues becoming a company of excellence, in permanent challenge understanding its customer needs and maintaining its sustainableand socially responsible vision.

CC0.2Reporting YearPlease state the start and end date of the year for which you are reporting data.The current reporting year is the latest/most recent 12month period for which data is reported. Enter the dates of this year first.We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you havenot provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option ofanswering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the mostrecent reporting year.Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosedWed 01 Jan 2014 Wed 31 Dec 2014

CC0.3Country list configuration



Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completingyour response.

Select countryChile

CC0.4Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency.

USD($)

CC0.6ModulesAs part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto componentmanufacture subindustries, companies in the oil and gas subindustries, companies in the information technology and telecommunications sectors and companies in the food,beverage and tobacco industry group should complete supplementary questions in addition to the main questionnaire.If you are in these sector groupings (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automaticallyappear in the navigation bar when you save this page. If you want to query your classification, please email [email protected] you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view thequestions first, please see https://www.cdp.net/enUS/Programmes/Pages/Morequestionnaires.aspx.

Further Information

Module: Management

Page: CC1. Governance

CC1.1Where is the highest level of direct responsibility for climate change within your organization?

Board or individual/subset of the Board or other committee appointed by the Board

CC1.1aPlease identify the position of the individual or name of the committee with this responsibility

The highest level of responsibility for climate change is on the Steering Committee of CSR (Corporate Social Responsibility) which is leaded by Enaex CEO, Mr. Juan AndrésErrázuriz who gives the main strategic directions to each area.The CSR committee goes according Enaex’s strategic plan, which seeks to grow being efficient without diminishing the excellence of customer services.The other members of the CSR steering committee are:Mr. Pablo Busquet, CFO, who supervises the operational costs of the CDM (Clean Developed Mechanism) projects and how they could impact the overall costs of thecompany. As CFO he is also aware of understand in a better way any financial impact that climate change could have on Enaex core business.Mr. Claudio Yévenes, COO. He is in charge of all production plants, including ammonium nitrate manufacturing and explosives production. In that way, his most important roleregarding climate change is watching for a low carbon production process through a nonfailure operation of the CDM projects and drive energy efficiency projects.Ms. Patricia Valenzuela, Human Resources Director. She leads sustainable initiatives related to the relationship with the main stakeholders. This has been focused ondeveloping a communication strategy with them.Mr. Francisco Diaz, Marketing Assistant Director. He represents interests and worries of Enaex’s mining costumers incorporating them as new developments. As an example,on 2013 Enaex conducted its explosives products carbon footprint from a mining costumer request.

mailto:[email protected]

https://www.cdp.net/en-US/Programmes/Pages/More-questionnaires.aspx



Mr. Francisco Baudrand, Planning and Business Development Director. He is in charge of Enaex Strategic Planning which includes raising new and long term initiativesamong the company regarding climate change assessment and management.Ms. Josefina Diaz, Head of Sustainability. In charge of update and report the status of the carrying out initiatives regarding climate change and sustainability. Specificallyannual carbon footprint accounting, CDM projects emission reductions reporting to its stakeholders, support any activity of the company related with climate change teaching.

CC1.2Do you provide incentives for the management of climate change issues, including the attainment of targets?

Yes

CC1.2aPlease provide further details on the incentives provided for the management of climate change issues

Who is entitled to benefitfrom these incentives?

The typeof

incentives

Incentivizedperformanceindicator

Comment

Chief Operating Officer(COO)

Monetaryreward

EnergyreductionprojectEnergyreductiontargetEfficiencyprojectEfficiencytarget

Mr. Claudio Yevenes COO of Enaex has an annual monetary reward related to accomplish quoted or reduceunitary operation cost of ammonium nitrate through implementing energy efficiency projects At reporting year2014, the accomplished KPI was to reduce energy consumption per ton of ammonium nitrate from 51 kwh /tAN to49 kwh/tAN which represented a decreased from base year (2012) of 9439 Mwh/year and 8245 tCO2

Business unit managers Monetaryreward

EnergyreductionprojectEnergyreductiontargetEfficiencyprojectEfficiencytarget

Prillex Plant Operation Manager Mr. José Contreras leader of the ammonium nitrate production, has an annualmonetary reward associated with not exceed 52 kwh per ton ammonium nitrate produced.

Environment/Sustainabilitymanagers

Monetaryreward

EmissionsreductionprojectEmissionsreductiontarget

Mr. Carlos Araneda, Enaex CDM projects leader has an annual monetary reward associated to a KPI related toEmission reductions budget achievement. Ms. Josefina Diaz, Head of Sustainability, has an annual monetaryreward associated to a KPI related to carbon footprint accounting, verification and reporting

Further Information

Page: CC2. Strategy

CC2.1Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities



There are no documented processes for assessing and managing risks and opportunities from climate change

CC2.1dPlease explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a processin future

Main reasonfor nothaving aprocess

Do youplan to

introducea

process?

Comment

Norequirementfrommanagement

Yes

During 2013, Enaex’s CSR Committee did a first exercise of analysis of risks and oportunities related to climate change. However, this analysiswas not reported to the Board or deepened during 2014 due it concluded that Enaex core business is not directly threatened in the short termby risks nor opportunities associated with climate change and therefore there was not a requirement of the management to repeat it during2014. On March 2015 a flood affected the north part of Chile where Enaex has its two most important productive plants and 1/3 of all its workers.Thankfully no worker or their family resulted hurt nor importantly damaged on personal assets. With that in mind a new assessment of climatechange risk and opportunities has been planned for August 2015. This new assessment is planned considering Materiality criteria and therecently launched 20152020 Strategic plan in order of having a deepest analysis with financial impacts of climate change risks andopportunities. With deeper and more concrete results, Enaex’s CEO could be able of presenting them to the Board and promote a reasonablyfrequency of review, analysis and reporting.

CC2.2Is climate change integrated into your business strategy?

Yes

CC2.2aPlease describe the process of how climate change is integrated into your business strategy and any outcomes of this process

Climate change started influencing Enaex business strategy since Kyoto Protocol entered into force on 2005. Because from that, Enaex was invited by Mitsubishi Company todevelop a CDM project related to the reduction of N2O emissions in the nitric acid plant n°3 (Panna3: UNFCCC Ref.1229 and to sell certified emission reductions at the EUETS. The first CDM project of Enaex involved USD 12 million investment and was launched on 2007 becoming an important nooperational source of revenue for thecompany until 2012 and reducing almost 800,000 tCO2e per year.Since this important investment onwards, Enaex Board has been aware about the climate change impacts over the business and Enaex stakeholders and has promotedseveral mitigation/adaptation initiatives in order being aligned with a sustainable development of the business. As an example, on 2010 a USD 20 million investment wasapproved in order of having an energy cogeneration system based on seizing the steam surplus generated during production process of the new nitric acid plant (Panna4).On 2011 and regarding the whole positive impact that CDM had at Enaex reputation and economic results added up to a complex scenario of Chilean mining costumers duehigher production costs because energy scarcity, Enaex Board defined that Climate Change impacts would be part of the long term Strategic Plan through the enhancement ofGHG emission reductions and energy efficiency projects at Enaex Productive PlantsEnaex Strategic Plan founds itself in four pillars (Growth, Efficiency, Costumers and People) all of which have strategic initiatives to be develop in a 5year horizon.Sustainability (and therefore the need of adapting to climate change) is declared as a fundament key influencing these four pillars with their strategic initiatives whether asspecific initiatives or as a criteria for implementing the rest of the initiatives in a sustainable manner. Associated to every strategic initiative there are also short term tacticalinitiatives declared in an Annual Master Plan, which is presented, reviewed and approved every year by Enaex Board at the same time that the last year results are reported.One of the most important component of the strategy that has been influenced climate change is the “Efficiency on Productive Process” especially by developing andimplementing projects tending to reduce the electric cost by tonne of ammonium nitrate. This projects are mostly based on using the most amount of steam surplus of Prillexplant as energy cogeneration. Since the energy efficiency projects started, Enaex has reduced its purchased energy by 45%. For 2015, the KPI of energy efficiency should notbe over 52 kwh per tonne of ammonium nitrate (AN), giving a monetary reward to the management team if this AN energy cost is equal or less than 49,5 kwh per tonne AN.Then,on 2011 was approved to develop and install a N2O emissions catalyst system in Panna 4 Plant under a new CDM methodology (developed by Enaex and an AustrianCompany (Carbon Climate Protection)). This allows Enaex reducing near of 80% of Panna 4 N2O total emissions and obtaining 250,000 CERs per year.

Another important component of Enaex´s strategy influenced by climate change is the strategic initiative “Loyalty of Mining Home Market (Chile)” which has the objective ofdeveloping innovative onsite solutions as a way of differentiate Enaex over competitors by helping mining costumers on facing current challenges as the higher cost of energy.



One example is the currently launched “Energex® project” which has developed an explosive product of high energy release resulting in a better prepared blasting materialfor the milling process reducing total energy consumption downstream.Enaex mining costumers have had a positive influence on Enaex business strategy in terms of Climate Change management because they have been constantly demandingknowing the “Carbon Emission Factor” of Enaex explosives. As a recent result has been a collaborative work with one of the most important Chilean mines, Minera doña Inesde Collahuasi, by using Enaex’s emissions factors in their carbon foot print calculation. This kind of long term relationship also impacts on a strategic advantage overcompetition.Another examples of important long term business decisions taken by Enaex regarding Enaex sustainable development and climate change management commitment havebeen: 1) Supporting the ECOPLANTA Project (2005). The Ecoplanta, installed inside Enaex customer mining site, allows collecting and recycling wasted fuel oil from miningoperation and use it for explosive production. 2) Incorporating LED Technology when new Corporate Building was designed on 2012

CC2.2cDoes your company use an internal price of carbon?

Yes

CC2.2dPlease provide details and examples of how your company uses an internal price of carbon

Enaex has defined as internal price of carbon the one resulted from the operational cost from its two CDM projects divided by total issued CER (certified emissions reductions)In example, during reporting year 2014, the operational cost of both CDM projects was USD1.5 million and a total issued CERs 676000. Therefore we arrived to an internalprice of carbon 2014 of 2.4 USD/CEROn January 2014 Enaex applied for a Norwegian fund raised to support vulnerable CDM projects. On this application Enaex suggested a sale/purchase price according to thisinternal price of carbon (2.9 USD/CER). This price was acceptable for being eligible to the fund.

CC2.3Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)

Trade associationsFunding research organizations

CC2.3bAre you on the Board of any trade associations or provide funding beyond membership?

Yes

CC2.3cPlease enter the details of those trade associations that are likely to take a position on climate change legislation

Tradeassociation

Is yourposition onclimatechange

consistentwith theirs?

Please explain the trade association's position How have you, or are you attempting to,influence the position?

SCX Consistent

Enaex is founder and shareholder of "Santiago Climate Stock Exchange" which is a nonmutualstock market exchange, that is, brokers that trade on it are not required to be shareholders.Transactions are allowed for a wide scope of participants, including corporations andindividuals. In the long term, instruments such as derivatives are expected to be available, justas in developed markets

Enaex looks forward to actively participatein the association board meetings, and atthe same time, being updated aboutinternational carbon market and taking

actions for influence it.



CC2.3dDo you publicly disclose a list of all the research organizations that you fund?

No

CC2.3eDo you fund any research organizations to produce or disseminate public work on climate change?

Yes

CC2.3fPlease describe the work and how it aligns with your own strategy on climate change

Since 2009, Enaex has contributed, economically (with about 9,000 USD/y) and with its active participation in CLG Chile, a group which is part of a Climate Change GlobalProgram hosted by the University of Cambridge and which comprises "business leaders from major UK, EU and international companies who believe in an urgent need todevelop new and longerterm policies for tackling climate change”. In Chile, CLG is leading by the business school of Universidad de Chile and the Chilean British Chamber,focusing the work on promoting the research about climate change effects and impacts, developing appropriate solutions and technologies to deal with it and supporting thedesign and implementation of national public policies for climate change adaptation of private companies. Being part of CLG Chile this last year has allowed Enaex to keep up to date and have a word regarding new public policies and definitions that Chilean government is aimingto implement with respect to 2020 binding commitment (Chilean Intended Nationally Determined Contributions (INDCs)). This work is fully aligned with Enaex long termstrategy since we have the largest amount of CERs (27% of total Certified Emission Reductions) issued to Chile, being able of contributing with an important part of the totalnational emission reductions

CC2.3hWhat processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?

In the middle of 2014, Enaex's CEO approved the creation of "Head of Sustainability" position in the company. One of the main duties of this position is being aware of theactivities of the company related to sustainability and climate change strategy. In that way Enaex's Head of Sustainability, Ms. Josefina Diaz, participates actively at CLGmeetings where chilean energy and environmental authorities treat and discusses climate change policies. Nevertheless, it is necessary propose a way to commitment andimprove this contribution in the future.

CC2.4Would your organization's board of directors support an international agreement between governments on climate change, which seeks to limit global temperature rise to under twodegree Celsius from preindustrial levels in line with IPCC scenarios such as RCP2.6?

Yes

CC2.4aPlease describe your board's position on what an effective agreement would mean for your organization and activities that you are undertaking to help deliver this agreement at the2015 United Nations Climate Change Conference in Paris (COP 21)

Enaex’s Board supports and expects from the COP21 an effective agreement with respect to the responsibilities of Chilean Government and individual organizations orindustries in relation to climate change. To support the generation of this agreement Enaex has actively participated during the last 4 years in discussions and activitiesorganized by the Ministry of Environment through CLG Chile.

Further Information



Attachments

https://www.cdp.net/sites/2015/92/48792/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC2.Strategy/CC 2.2a 20152020 Strategic Plan.pdf

Page: CC3. Targets and Initiatives

CC3.1Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year?

Absolute and intensity targets

CC3.1aPlease provide details of your absolute target

ID Scope% of

emissions inscope

%reductionfrombaseyear

Baseyear

Base yearemissions(metrictonnesCO2e)

Targetyear Comment

Abs1 Scope2 93% 21% 2012 39707 2014

Five projects related to energy efficiency have been implemented at Prillex Plant complexsince 2012. This means 9.439 MWh of additional saving over the 29,000 MWh alreadyreduced by energy cogeneration by steam surplus use since 2010. By 2014 Prillex ANComplex is 45% energy selfsufficient

CC3.1bPlease provide details of your intensity target

ID Scope% of

emissionsin scope

%reductionfrombaseyear

Metric Baseyear

Normalizedbase yearemissions

Targetyear Comment

Int1 Scope1 100% 18%

metrictonnesCO2epermetrictonne ofproduct

2012 0.411 2014On 2014 both parameters, emissions from scope 1 and ammonium nitrate production,were lower than 2012 (12% and 4% respectively). Nevertheless, the intensity target(Scope1 tCO2/tAN) also decreased by 18% from 2012.

Int1 Scope2 93% 18%

metrictonnesCO2epermetrictonne ofproduct

2012 0.049 2014

This intensity target is a KPI for the Corporative Production Officer and it is focused onreducing the energy consumption by tone of ammonium nitrate. Since 2012 this targetdecreased from 61 kWh to 51kwh during 2014. Regarding the emissions related to thistarget, they were reduced from 49 kgCO2/kgAN to 40 kgCO2/kg AN (18%) consideringthat only 2% of this is explained by a lower emission factor reported by the energyauthority on 2014.

Int3Scope2 93% 3%

metrictonnesCO2epermetrictonne of

2014 0.040 2015

For 2015 (target year) the goal is to achieve an energy consumption lower than 50 kWhper ton of ammonium nitrate which represent a 3% reduction target from 2014. In termsof absolute emissions reductions this means 230 tCO2 (1%) less than absolute 2014scope2 (31462 tCO2) or as an intensity figure <39 kgCO2/kgAN assuming no changein grid emission factor (0,79 tCO2/Mwh)

https://www.cdp.net/sites/2015/92/48792/Climate%20Change%202015/Shared%20Documents/Attachments/ClimateChange2015/CC2.Strategy/CC%202.2a%20%202015-2020%20Strategic%20Plan.pdf



product

CC3.1cPlease also indicate what change in absolute emissions this intensity target reflects

ID

Direction ofchange

anticipated inabsolute Scope1+2 emissions

at targetcompletion?

% changeanticipatedin absoluteScope 1+2emissions

Direction ofchange

anticipated inabsolute Scope3 emissions at

targetcompletion?

% changeanticipatedin absoluteScope 3emissions

Comment

Int1 Decrease 21 No change 0

27% of absolute emissions from scope1 are process emissions (250,018 tCO2). From this, 17%(41,317 tCO2) comes from Panna1 plant which does not have an N2O abatement system. In orderof reducing process emissions since 2014, Panna1 remained out of service 9 of 12 months of 2014and was replaced by overloading Panna 3 and Panna4 plant which have lower emissions per toneof nitric acid produced due their CDM projects implemented. Scope 3 is not related to this target

Int2 Decrease 21 No change 0

Absolute energy consumption of Prillex Plant (93% total Scope2) was expected to decrease 19%(9.439 MWh/49264 MWh) since 2012 due five energy efficiency projects implemented last twoyears. In the same way absolute scope 2 emissions were reduced 21% (8245 tCO2 reduced duringreporting year / 39707 tCO2 2012) where just 2% of this reduction is explained by a less gridemission factor (2012 grid EF 0.806 tCO2/Mwh vs. 2014 grid EF 0,79 tCO2/Mwh) Scope 3 is notrelated to this target

Int1 Decrease 1 No change 0As 2015 target of 49 Kwh / ton AN assumes an increase of AN production, the expected absolutereduction of scope2 in order of achieving this target is 230 tCO2 (1%) Scope 3 is not related to thistarget

CC3.1dFor all of your targets, please provide details on the progress made in the reporting year

ID

%complete(time)

% complete(emissions)

Comment

Abs1 100% 100% Target completed on 2014Int1 100% 100% Target completed on 2014Int2 100% 100% Target completed on 2014

Int3 42% 0% By May 2015 target of 49 Kwh/t AN has not be achieved because a mechanical failure at the steam turbo compressor responsible ofenergy cogeneration of Prillex Plant. This mechanical failure forces the use of purchased energy from SING grid system

CC3.2Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party?

Yes

CC3.2aPlease provide details of how the use of your goods and/or services directly enable GHG emissions to be avoided by a third party

The use of Enaex’s ammonium nitrate (AN) as raw material at onsite explosives production allows Enaex mining costumers directly reduce their scope3 GHG emissions. ThisGHG emissions are avoided at explosives manufacture because Enaex AN has a lower CO2e emission factor (2.1 tCO2/tAN) than the one reported by Brent G.F., 2009.“Greenhouse gas implications of explosives and blasting” (2.9 tCO2/tAN) considering that no other emission factor has been reported for explosive grade ammonium nitrate



(IPCC only reports EF for fertilizer grade ammonium nitrate)There are two main reasons for having an ammonium nitrate with such low carbon footprint: 1)Two CDM projects implemented at Enaex Prillex AN Complex reducing almost 90% of total GHG emissions from nitric acid production2)Five energy efficiency projects implemented between 2010 and 2014 at Enaex Prillex Complex reducing almost 45% of GHG emissions derived from purchased energy.As an example of how many GHG emissions could be avoided by an average Enaex’s mining costumer, we have that they can consume 4,500 tons of ammonium nitrate permonth. Just considering scope3 GHG emissions from “1 purchase goods and services”, using Enaex ammonium nitrate can make a total avoidance of 43200 tCO2 per year atone mining costumer.Enaex AN emission factor was accounted during on 2014 using “cradle to gate” approach and the methodology defined by the guideline “PAS 2050:2011 Specification for theassessment of the life cycle greenhouse gas emissions of goods and services”.

CC3.3Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases)

Yes

CC3.3aPlease identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development Number of projects Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)Under investigation 0 0To be implemented* 0 0Implementation commenced* 0 0Implemented* 4 9439Not to be implemented 0 0

CC3.3bFor those initiatives implemented in the reporting year, please provide details in the table below

Activitytype

Description of activity

EstimatedannualCO2esavings(metrictonnesCO2e)

Scope Voluntary/Mandatory

Annualmonetarysavings(unit

currency as

specifiedin CC0.4)

Investmentrequired(unit

currency as

specifiedin CC0.4)

Paybackperiod

Estimatedlifetime of

theinitiative

Comment

86% of energy saving at Prillex Complex occurred byusing process's steam surplus of ammonium nitrate

Theinitiativesand theirestimatedemissionreductioninvolved inthis energysaving are:1)Panna3steamconnectionto Panna4steamcompressor



Energyefficiency:Processes

production at the steam compressor unit installed atPanna4 Plant: On 2010, Panna4 plant was raisedconsidering using its own steam surplus. This allowed35% of energy selfsufficiency. Then, on 2013, Panna3steam surplus was connected and driven to Panna4steam compressor in order of increase +10% energycogeneration (9439 tCO2 avoided) reaching almost 45%of energy selfsufficiency. This can be totalize 29,000tCO2 avoided emissions by less energy purchased

9439 Scope2 Voluntary 950000 5000 <1 year Ongoing

(8082Mwh/y;6385tCO2/y) 2)Return ofPanna 3condensate(675Mwh/y; 533tCO2/y) 3)Invertersinstallationat Area92(557Mwh/y; 440tCO2/y)4)Updatedreverseosmosisplant (125Mwh/y; 99tCO2/y)

CC3.3cWhat methods do you use to drive investment in emissions reduction activities?

Method Comment

Dedicated budget forenergy efficiency

Every year an Investment Budget Plan with the most important (strategic and tactic) initiatives is raised. Regarding Efficiency Strategic pillar,including energy efficiency projects, a USD 4 millon budget is planned for 2015

Further Information

Attachments

https://www.cdp.net/sites/2015/92/48792/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC3.TargetsandInitiatives/FragBlast 2009 Greenhouse Gas Implications of Explosives and Blasting (1).pdfhttps://www.cdp.net/sites/2015/92/48792/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC3.TargetsandInitiatives/2014 Targets andInitiatives.pdf

Page: CC4. Communication

CC4.1Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDPresponse? If so, please attach the publication(s)

Publication Status Page/Section reference Attach the document

In mainstream financial reports but have Complete page 43/Section "Desarrollo https://www.cdp.net/sites/2015/92/48792/Climate Change 2015/Shared

https://www.cdp.net/sites/2015/92/48792/Climate%20Change%202015/Shared%20Documents/Attachments/ClimateChange2015/CC3.TargetsandInitiatives/FragBlast%202009%20-%20Greenhouse%20Gas%20Implications%20of%20Explosives%20and%20Blasting%20(1).pdf

https://www.cdp.net/sites/2015/92/48792/Climate%20Change%202015/Shared%20Documents/Attachments/ClimateChange2015/CC3.TargetsandInitiatives/2014%20Targets%20and%20Initiatives.pdf



not used the CDSB Framework Sustentable" Documents/Attachments/CC4.1/MemoriaEnaex2014Firmada.pdf

In voluntary communications Complete at Enaex website: Report of 2012Carbonfootprint Calculation

https://www.cdp.net/sites/2015/92/48792/Climate Change 2015/SharedDocuments/Attachments/CC4.1/Enaex_informe final.docx.pdf

Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all thatapply

Risks driven by changes in regulationRisks driven by changes in physical climate parametersRisks driven by changes in other climaterelated developments

CC5.1aPlease describe your inherent risks that are driven by changes in regulation

Riskdriver Description

Potentialimpact

Timeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implicationsManagement method Cost of

management

Airpollutionlimits

Locations whereEnaex facilities areplaced do not haveGHG emissionregulations yet.However, andlooking into 2020and Chilean globalcommitments it islikely that EnaexProductive Plantssuch Prillex atMejillones or RioLoa, near Calama,should be affectedby regulations todecontaminatesaturated areas or in

Inability todobusiness

1 to 3years Direct Likely High

Failure oncomplyingwith any localenvironmentalregulationscould implypartial or totaloperationceasing. Inthat way, thefinancialimpact couldbe as high asUSD 1,5million perdaydepending onwhich facility

Enaex has developed an online monitoringsystem installed at two key points ofMejillones and publicly reported at Mejillonescity webpage(http://www.mejillones.cl/2013/04/bienvenidoanuestroserviciodemonitoreoenlineacalidaddelaireambiental/) Considering theemissions reductions from its CDM projects(>95% abatement), Enaex is well prepared toface new air pollution limits because hasalready set highly strict voluntary limits likethe Swiss Normative of NOx and N2O

Following theSwissNormativestandardsabout NOxand N2O (<100 ppm)emissionimplies themaintenancecost ofcurrentEnaexabatementsystemswhichrepresentUSD 1,3million peryear. In thesame way,any new nitricacid plantplanned to bebuilt must



order to promotebest practices andgeneral lower localemissions

is affectedand how longthe closurecan last.

considerSelectiveN2O CatalystSystem whichcould meanan averageadditionalinvestmentcost of 1million USDper new plant

Emissionreportingobligations

Chilean Office onClimate Change hasalready published adraft for comments ofa nationalmitigation/adaptationframework in order ofhaving an emissionreductioncommitment topresent duringCOP21. This draftincludes the“Industrial Process”subsector (whereEnaex belongs) andcommits at least 25%of emissionreduction by 2025.Regarding thisupcoming nationalcommitment andbeing Enaex a largescale chemicalindustry and the onlyone that producesnitric acid, there is apotential risk ofbeing obligated tomeasure, report andverify our corporativeemissions in a nearfuture (at least 2020onwards) in order ofhaving a betterestimation ofnational emissionsreductions andsubsectorcontributions.

Increasedoperationalcost

1 to 3years Direct

Morelikely thannot

Lowmedium

Failure oncomplyingwith anyenvironmentalobligationcould implymonetarypenalties oreven thepartial closeof theoperations. Inthat way, thefinancialimpact couldbe as high asUSD 1,5million perdaydepending onwhich facilityis affectedand how longthe closurecan last.

Enaex performs its corporative GHGinventory since 2012 and this year is verifyingit for the first time anticipating a possibleobligation. Furthermore, by its CDM projects,Enaex has developed good experienceregarding monitoring and verificationprocedures. Regarding reporting experience,Enaex has planned develop its first formalemissions report during 2015 supported by aspecialized company as a way of being wellprepared and gaining knowledge in case ofany future reporting obligation.

Enaex hasestimated atotal annualcostmonitoring,verifying andreportingGHGemissionsinventorynear of USD50,000

On 2014 Chilean

Through theCDM projectsand carbonfootprint



Carbontaxes

government enacteda new environmentaltax legislation whichincludes a charge ofusd5 per ton of CO2released as CarbonTax for the powersector. With thisaction Chilebecomes the firstcountry in SouthAmerica to taxcarbon dioxide(CO2) emissionsshowing itsleadership regardingclimate changefighting commitment.In the same way, adraft of a NationalAdaptation/MitigationProgram is nowunder public revisionin order of present abonding commitmentat COP21 This activeposition of Chileangovernmentregarding climatechange raise thepossibility of aCarbon Tax overN2O emissionscould affect Enaex inthe short term.

Increasedoperationalcost

1 to 3years Direct

Morelikely thannot

Lowmedium

calculationEnaex knowsthe magnitudeof itsemissionswhich are lowand could beunder apossible N2Onormativethereforeexempt fromcarbon taxNevertheless,the onlyfinancialestimationthat Enaexcan make atthis point isconsidering acarbon taxsimilar tocurrentelectriccarbon tax of5 USD/tCO2released. Ifwe have anannualaverage of250,000tCO2eq, thecost of acarbon taxcould be nearof USD 1,25millon.

In order of managing the carbon tax risk,Enaex has developed two strategies: Maintain and promote low GHG emissionproduction. As Enaex is the only nitric acidplant in Chile, having low GHG emissionproduction could discourage any possiblecarbon tax participate actively through CLGChile with national environment authorities inorder collaborate with the national GHGbaseline inventory and then collaborate withany possible public policies regarding carbontaxes

Maintain lowGHGemissionproductiontrough EnaexCDM projectscosts USD1.5 millionper year andthemembershipof CLG Chileabout USD5000/year

CC5.1bPlease describe your inherent risks that are driven by change in physical climate parameters

Risk driver Description Potential impact Timeframe Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

Enaex production plants andtheir workers are located innorthern Chile, which is not usedto receiving more than 3 mm ofrainfall /year A change in the

After theevent ofmarch 2015Enaex couldestimatehow much achange inprecipitationpattern can

Before theevent of march2015 therewas no riskassessment of



Change inprecipitationpattern

pattern of precipitations haverecently affected the northernChile last March 2015, with a"extremely rare" 11,9 mm rain injust one day causing a flashfloods of mudslide. As thisincident could happen again, therisk of suspending operations ofEnaex productive plantsassociated to unexpectedprecipitations was detectedwhere roads could be closed,energy supply suspended andEnaex workers released of theirlabors in order to attender thepossible damage to their homesor families.

Reduction/disruptionin productioncapacity

1 to 3years Direct

About aslikely asnot

Medium

affect thebusinessperform.Almost 50%of Enaexworkers andalso Eanexcostumer'sworkerswereaffected bythe rain andthe flooding.At Rio Loa,the mostaffectedplant,suspend theoperationscost USD 1million perday

theimplications offlood event onEnaexbusiness. NowEnaex hasconsideredperformclimate changephysicalimpacts riskassessment inorder ofknowing howto proceed infuture casesand how muchit could cost.

There iscurrently noquantificationof how muchcould costmanagingthis risk

Change inmean(average)temperature

Changes in sea temperatureaffects Prillex Plant operationdue its uses sea water as coolingsystem at nitric acid andammonium nitrate productionprocess In summer time the seawater temperature increases2°C, then the power needed forcooling system would increase100 KW

Reduction in capitalavailability

3 to 6years Direct Unlikely High

If the seatemperatureincreases2°C in apermanentway (notonly insummertime) Enaexhasestimated anannualadditionalconsumptionof energynear of 1100MWh whichmeansUSD110,000more onenergy cost.

No managingmethod hasbeen donebesidesincreasing thepower neededin summer time

The cost ofmanagementcould implyconsider newinvestmentregardingcooling watersystem andthe cost ofthem has notbeenquantifiedyet.

Sea levelrise

Enaex's Prillex Complex involveassets for about USD 800millions. A recent risk studymade by a insurance company

Reduction/disruptionin production Unknown Direct Unlikely Medium

high

Enaex'sPrillexComplexinvolveassets forabout USD800 millions.A recent riskstudy madeby a

Enaex has anemergencyplanimplementedat all itsfacilities. I caseof PrillexComplex, thisplan includesspecificinstructionsabout how to

The annualcost of thecompleteinsurance



showed that no more than 20%could be affected by an eventualtsunami.

capacity insurancecompanyshowed thatno morethan 20%could beaffected byan eventualtsunami.

proceedpreventive andreactively incase oftsunami Inorder of protectEnaex assetsthere is a USD160 millioninsurance

USD 3.3million

Tropicalcyclones(hurricanesandtyphoons)

Enaex consumes 1,000 ton ofammonia per day, I order of fulfillthis consumption receives a newammonia shipment every 21days from Trinidad y TobagoTherefore any important climateproblem, such excess ofprecipitation or hurricanes atCentral America, can causedisorders on Enaex supply chainand ammonium nitrateproduction affecting the completevalue chain by leading in anoncompliance with the deliverytime schedule with Enaex miningcostumers

Reduction/disruptionin productioncapacity

3 to 6years

Indirect(Supplychain)

Veryunlikely

Mediumhigh

Prillex Plantproduces1,100 tonper day ofnitric acidand another1,100 tonper day. Oneday of noproductioncould costUSD 1.5million

So far, this riskhave beenmanaged bymaintaining agoodcoordination /communicationwith Enaexammoniasupplier(Transamonia)In example, ifthe ammonialoading atCaribbean portdelays 1 or 2days dueclimateproblemsammoniasupplier canadjust the timein sea transit(12 days asnormal) inorder of nothaving ETAdelay

As this riskhas beenmanaged bya goodrelationshipwith Enaexammoniaprovider noextra cost hasbeenquantified yet

CC5.1cPlease describe your inherent risks that are driven by changes in other climaterelated developments

Riskdriver Description

Potentialimpact

Timeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

Since it wasfounded Enaex hasmanaged the risk ofloosing reputationby doing all of itsactivities in asustainable way, Asan example, in



Reputation

The recent studies of theanthropogenic impact on climatechange and the more frequentnatural disasters over the worldhave made Enaex's stakeholders(nearby community, costumers,being more informed andconcerned about what is thecompany doing regardingmanaging its impacts of theoperation

Reduced stockprice (marketvaluation)

1 to 3years Direct Unlikely Medium

high

Enaex hasnotquantifiedhow muchclimatechangecould affectitsreputation

2010 invested in anew nitricacid/ammoniumnitrate plant(Panna4)considering asystem which usesthe steam surplusof the plant forenergy generation.This USD 20 millioninvestment hasallowed 35% ofenergy selfsufficiency TodayEanex hascalculated itscarbon foot and hassome sustainabilityperform indicatorsin order of showingto its stakeholdershow is the companymanaging climatechange impacts onbusiness and valuechain

By 2015Enaex isinvestingalmost USD100,000 oninitiatives likecarbonfootprintaccountingandverificationand its firstSustainabilityreport.

Changingconsumerbehaviour

On 2012 Chilean investmentregarding 2020 on new miningprojects were almost USD 100billion. By 2014 this value has beenreduced to USD6 60 billion due alot of mining projects have beendelayed or even closed becausethe higher operational costs ofenergy, water and decreased ofproductivity. If Chilean miningcostumers are losingcompetiveness at their markets duehigher energy costs, Enaex will beaffected by a more competitive andpricebased scenario.

Reduceddemand forgoods/services

Up to 1year

Indirect(Client) Likely Medium

high

Enaex isnationalleader atBlastingServices forthe miningindustryhaving 65%of marketshareproducing750,000 tonammoniumnitrate. In amorecompetitivescenario, itbecomeseasy to losemarketshare ormargin. 1%of marketshare lossrepresentalmost USD1 million lostrevenue.

For managing thisrisk Enaex isworking ondeveloping newand moresustainableproducts andservices in order ofgain differentiationover its competitors.It is include in 2020strategic plandeveloping energysaving solutions formining costumerslike ENERGEXproduct whichleads a better rockmaterial fordownstreamcrushing.

2015 annualbudget ofR+D is USD0.5 million



Further Information

Attachments

https://www.cdp.net/sites/2015/92/48792/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC5.ClimateChangeRisks/ANTEPROYECTOCONTRIBUCIONNACIONALTENTATIVA171214.pdf

Page: CC6. Climate Change Opportunities

CC6.1Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick allthat apply

Opportunities driven by changes in regulationOpportunities driven by changes in physical climate parametersOpportunities driven by changes in other climaterelated developments

CC6.1aPlease describe your inherent opportunities that are driven by changes in regulation

Opportunitydriver Description Potential

impact Timeframe Direct/Indirect Likelihood Magnitudeof impact

Estimatedfinancial

implicationsManagement method Cost of

management

Cap andtradeschemes

EU Carbon market hasbeen depressed foralmost 3 years withprices lower than 1EUR/ CER. A futureChilean Cap andTrade Scheme couldoffer a better price anda more steady demandfor Enaex CERs thancurrent EU carbonmarket

Increasein capitalavailability

1 to 3years Direct Likely High

Enaex's breakevenabatement cost isaround 2,5USD/CER. Enaexcould offer almost800,000CERs/year in alocal cap and trademarket. If the pricefor CERs of thismarket would be 3USD, Enaex willreceived anadditional nooperational incomeof 400,000 USD Inother words, anyprice over 2,5USD/CER offeredby a local cap andtrade market couldimpact positivelyEnaex results.

As a way of managingthis opportunityEnaex has continuedthe verification of itsemission reductionsand CERs issuancein order of havingCERs to offer inpotential Chilean Capand Trade MarketAlso, has workedcollaborating withenvironment nationalauthorities, throughCLG Chile, by givinginformation of itsprocess andemissions in order ofbuild nationalbaseline inventorywhich is needed for apotential cap andtrade system.

Annualverificationcost isUSD75,000and CLGmembershipis USD 5000per year

CC6.1bPlease describe the inherent opportunities that are driven by changes in physical climate parameters

https://www.cdp.net/sites/2015/92/48792/Climate%20Change%202015/Shared%20Documents/Attachments/ClimateChange2015/CC5.ClimateChangeRisks/ANTEPROYECTO-CONTRIBUCION-NACIONAL-TENTATIVA-171214.pdf



Opportunitydriver

Description Potential impact Timeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

Inducedchanges innaturalresources

Increasingly higher costs ofenergy are affecting Enaexmining costumers, This hasbeen an opportunity fordeveloping new productsand services speciallydesigned for downstreamenergy saving gaining adifferentiation competitiveadvantage over Enaex'scompetitors

Newproducts/businessservices

Up to 1year

Indirect(Client) Likely Medium

high

As part of itslong termstrategic plan,Enaex hasestimated that12% ofannualrevenue canbe achievedby 2020 fromnew productsor servicesspeciallydeveloped forminingcostumers inorder ofsavingenergy orhaving amoresustainableminingprocess.

Regardingmanaging thisopportunity Enaexhas incorporated into20152020 StrategicPlan severalinitiatives focused onEnaex's miningcostumer needs bydeveloping new andmore sustainableproducts andservices. One of therecently launchedproducts isENERGEX whichhas a higherfragmentation powerreducing the rockwork index andtherefore savingenergy at the miningprocess downstream

Enaexannual R+Dbudgetdesignatedfor newproducts likeEnergex isaround USD0.5 million

CC6.1cPlease describe the inherent opportunities that are driven by changes in other climaterelated developments

Opportunitydriver

Description Potential

impactTimeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

Reputation

Climate change and its implications haveoffered to Enaex the opportunity of beingmore efficient regarding its process,products and services resulting in capitalsaving and good reputation. As anexample, on 2014, Chilean EnergyMinistry recognized Enaex with the"Energy Efficiency" stamp for all theinitiatives implemented since 2010 In thesame way, Enaex also has been namedby Chile Foundation and CapitalMagazine as one of the top 10 ChileanLeaders on Climate Change fighting forthree consecutive years (2011; 2012;2013).

Increasedstock price(marketvaluation)

Up to 1year Direct Likely Medium

Enaex hasnot yetquantifiedhow much itsreputationcould beimproved instock priceterms in theshort termNevertheless,Enaex deeplybelives thatworkingsustainablywill mean astock pricerecognition inthe long term

Enaex hasmanaged thisopportunityby beingproactivemaking asustainabledeveloping ofits businessand byparticipatingandsupporting inmost nationalactivitiesaroundclimatechangefighting

By 2015 thecost ofmaintain thereputationgained isreflected in aUSD80000budget foraccounting,verifying andreporting2014 GHGinventory.

As the carbon Enaex has



Changingconsumerbehaviour

Enaex most important mining costumersare demanding that their suppliers havequantified their GHG inventory emissions.Having quantified and verified its carbonfootprint allows Enaex being in a goodposition for declaring its GHG inventoryand giving its products emission factors toits costumers gaining a competitiveadvantage over other ammonium nitrateand explosives competitors

Premiumpriceopportunities

Up to 1year Direct Likely Medium

As the carbonfoot printcalculationand reportingis a recentactivity inChileanindustry, It isnot yet clearenough howmuch aminingcostumerwould pay forhaving theemissionfactor of hisconsumedexplosives.

Enaex hasmanaged thisopportunitybyquantifyingits GHGinventory in100% of itsfacilities andalso itsexplosivesproductscarbonfootprint.being the firstblastingcompany ingiving thisinformation toits costumers.

The cost ofmanagementhas been thecarbonfootprintcalculationandverificationwhichrepresentsUSD 20000per year

Further Information

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading

Page: CC7. Emissions Methodology

CC7.1Please provide your base year and base year emissions (Scopes 1 and 2)

Scope Base year Base year emissions (metric tonnes CO2e)Scope 1 Sun 01 Jan 2012 Mon 31 Dec 2012 333367Scope 2 Sun 01 Jan 2012 Mon 31 Dec 2012 42080

CC7.2Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you useThe Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)IPCC Guidelines for National Greenhouse Gas Inventories, 2006Defra Voluntary Reporting Guidelines

CC7.2aIf you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2emissions

CC7.3Please give the source for the global warming potentials you have used



Gas ReferenceCO2 IPCC Fourth Assessment Report (AR4 100 year)N2O IPCC Fourth Assessment Report (AR4 100 year)CH4 IPCC Fourth Assessment Report (AR4 100 year)HFCs IPCC Fourth Assessment Report (AR4 100 year)SF6 IPCC Fourth Assessment Report (AR4 100 year)

CC7.4Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page

Fuel/Material/Energy EmissionFactor Unit Reference

Electricity 0.79 metric tonnes CO2e perMWh Chile SING http://huelladecarbono.minenergia.cl/emisionparaelsing

Diesel/Gas oil 69300 metric tonnes CO2 per GJ IPCC 2006. IPCC Guidelines for National Greenhouse Gas Inventories. Vol 2. Tabla2.2

Liquefied petroleum gas(LPG) 63100 metric tonnes CO2 per GJ IPCC 2006. IPCC Guidelines for National Greenhouse Gas Inventories. Vol 2. Tabla

2.2

Distillate fuel oil No 2 74100 metric tonnes CO2 per GJ IPCC 2006. IPCC Guidelines for National Greenhouse Gas Inventories. Vol 2. Tabla2.2

Electricity 0.36 metric tonnes CO2 per MWh CHILE SIC http://huelladecarbono.minenergia.cl/emisionparaelsic

Further Information

Attachments

https://www.cdp.net/sites/2015/92/48792/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC7.EmissionsMethodology/2014 GHG InventoryEmission Factors.xlsx

Page: CC8. Emissions Data (1 Jan 2014 31 Dec 2014)

CC8.1Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Operational control

CC8.2Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e

263693

CC8.3Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e

33748

https://www.cdp.net/sites/2015/92/48792/Climate%20Change%202015/Shared%20Documents/Attachments/ClimateChange2015/CC7.EmissionsMethodology/2014%20GHG%20Inventory%20Emission%20Factors.xlsx



CC8.4Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which arenot included in your disclosure?

No

CC8.5Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your datagathering, handling and calculations

Scope Uncertaintyrange

Mainsources ofuncertainty

Please expand on the uncertainty in your data

Scope1

Less than orequal to 2% Assumptions

As part of Scope1, Enaex must include the process emissions of nitric acid plant number 1 (Panna1) which is not under any CDMproject and therefore has no AMS (assurance measurement system). In order of calculating the process emissions from Panna1 itwas necessary to use the emission factor declared by IPCC 2006 for nitric acid plants looking for fulfill all the technical condition ofthe plant. This assumption could mean just ±1% of uncertainty within scope 1.

Scope2

Less than orequal to 2%

No SourcesofUncertaintyOther:EmissionFactorspublished

For scope 2 Enaex should use the emission factors of SING (North Interconnected System) y SIC (Central Interconnected System)reported annually from Ministry of Energy which a value of 2% has been adopted considering the control that the authority has overall associated emission factors and operation.

CC8.6Please indicate the verification/assurance status that applies to your reported Scope 1 emissions

Third party verification or assurance complete

CC8.6aPlease provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements

Type ofverification orassurance

Attach the statement Page/sectionreference

Relevantstandard

Proportion of reportedScope 1 emissions

verified (%)

Limitedassurance

https://www.cdp.net/sites/2015/92/48792/Climate Change 2015/SharedDocuments/Attachments/CC8.6a/Data and Assurance Statement ENAEX S.A Post TR 250615_3_.pdf

Page 23 ISO140643 100


Third party verification or assurance complete

CC8.7aPlease provide further details of the verification/assurance undertaken for your Scope 2 emissions, and attach the relevant statements

Type of verificationor assurance

Attach the statement Page/Sectionreference

Relevantstandard

Proportion of reportedScope 2 emissions



verified (%)Third partyverification/assuranceunderway

https://www.cdp.net/sites/2015/92/48792/Climate Change 2015/SharedDocuments/Attachments/CC8.7a/Data and Assurance Statement ENAEX S.A Post TR 250615_3_.pdf

ISO140643 100

CC8.8Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figures reported in CC8.6, CC8.7and CC14.2

Additional data points verified CommentNo additional data verified

CC8.9Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

No

Further Information

Attachments

https://www.cdp.net/sites/2015/92/48792/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC8.EmissionsData(1Jan201431Dec2014)/VSCCP6405 ISO 140641 VOL.INV.0114.2014.pdfhttps://www.cdp.net/sites/2015/92/48792/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC8.EmissionsData(1Jan201431Dec2014)/2014Enaex Herramienta cálculo huella CO2_FINAL.xlsx

Page: CC9. Scope 1 Emissions Breakdown (1 Jan 2014 31 Dec 2014)

CC9.1Do you have Scope 1 emissions sources in more than one country?

No

CC9.2Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

By facilityBy GHG type

CC9.2bPlease break down your total gross global Scope 1 emissions by facility

Facility Scope 1 emissions (metric tonnes CO2e) Latitude LongitudePrillex Plant 255576 23.096929 70.431449Rio Loa Plant 7927 22.517896 68.948625Punta Teatinos Plant 15 29.813112 71.291332Corporate Buildings (Santiago) 174 33.413811 70.587037

https://www.cdp.net/sites/2015/92/48792/Climate%20Change%202015/Shared%20Documents/Attachments/ClimateChange2015/CC8.EmissionsData(1Jan2014-31Dec2014)/VSCCP6405%20ISO%2014064-1%20VOL.INV.0114.2014.pdf

https://www.cdp.net/sites/2015/92/48792/Climate%20Change%202015/Shared%20Documents/Attachments/ClimateChange2015/CC8.EmissionsData(1Jan2014-31Dec2014)/2014%20Enaex%20Herramienta%20c%C3%A1lculo%20huella%20CO2_FINAL.xlsx



CC9.2cPlease break down your total gross global Scope 1 emissions by GHG type

GHG type Scope 1 emissions (metric tonnes CO2e)N2O 248684CO2 15008

Further Information

Page: CC10. Scope 2 Emissions Breakdown (1 Jan 2014 31 Dec 2014)

CC10.1Do you have Scope 2 emissions sources in more than one country?

No

CC10.2Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)

By facility

CC10.2bPlease break down your total gross global Scope 2 emissions by facility

Facility Scope 2 emissions (metric tonnes CO2e)Prillex Plant 31462Rio Loa Plant 2178Punta Teatinos Plant 29Corporate Buildings (Santiago and Antofagasta) 80

Further Information

Page: CC11. Energy

CC11.1What percentage of your total operational spend in the reporting year was on energy?

More than 0% but less than or equal to 5%

CC11.2Please state how much fuel, electricity, heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type MWhFuel 48760Electricity 43822



Heat 0Steam 35078Cooling 0

CC11.3Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels MWhDiesel/Gas oil 29374Liquefied petroleum gas (LPG) 19386

CC11.4Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the Scope 2 figure reported in CC8.3

Basis for applying a low carbon emissionfactor

MWh associated with low carbonelectricity, heat, steam or

coolingComment

Nongrid connected low carbon electricitygeneration owned by company, no instrumentscreated

992 Enaex owns a minihydro power generation plant which provides 1/3 (992 Mwh) oftotal energy consumption of Rio Loa production plant.

Nongrid connected low carbon heat, steam orcooling, generation owned by company 35078

A Steam compressor installed in Panna 4 plant which receives steam surplus fromPanna 3 and Panna 4 allows a 45% of energy selfsufficiency by energycogeneration

Further Information

Energy Consumption Calculator Tool from:http://www.seai.ie/Your_Business/Public_Sector/Reporting/AnnualReport/Energy_Consumption_Calculation_Tool.xls&sa=U&ei=ueSVcfmK4a5ggSMu4CQBQ&ved=0CAkQFjAC&client=internaludscse&usg=AFQjCNF5s151xDUbSSZcUw9zT84Wcty1BA

Attachments

https://www.cdp.net/sites/2015/92/48792/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC11.Energy/Energy_Consumption_Calculation.pdf

Page: CC12. Emissions Performance

CC12.1How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

Decreased

CC12.1aPlease identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year

ReasonEmissions

value(percentage)

Directionof

changeComment

Emissionsreduction 18 Decrease

In the reporting year 67038 tCO2 were reduced by emissions reduction activities: 1) 58707 tCO2 were reduced by havingPanna1 plant (which does not have any abatement system) out of service and replacing its production through increasing theoperation of Panna3 and Panna4 plants (both with CDM projects) 2) 8331 tCO2 were reduced by energy efficiency projects

https://www.cdp.net/sites/2015/92/48792/Climate%20Change%202015/Shared%20Documents/Attachments/ClimateChange2015/CC11.Energy/Energy_Consumption_Calculation.pdf



activities implemented at Prillex Plant. Our total emissions (Scope1+2) in 2012 were 375446 tCO2. Therefore, we arrived at 18%decreased by Emission reduction activities (67038 / 375446)*100 = 18% decrease

Divestment 0 Nochange

Acquisitions 0 Nochange

Mergers 0 Nochange

Change inoutput 2 Decrease In the reporting year 7822 tCO2 were reduced by changes in output due a reduction in Diesel consumption. Our total Scope 1

and 2 emissions in 2012 were 375446 tCO2. Therefore, we arrived at 2% decreased (7822/ 375446)*100 = 2% decrease

Change inmethodology 1 Decrease

In reporting year waste water treatment was considered scope3 because it is Enaex's property but under operational control of athird party. This change resulted in 3319 tCO2 reduced from scope1 Our total Scope 1 and 2 emissions in 2012 were 375446tCO2. Therefore, we arrived at 1% decreased (3319 / 375446)*100 = 1% decrease

Change inboundary 0 No

changeChange inphysicaloperatingconditions

0 Nochange

Unidentified 0 Nochange

Other 0 Nochange

CC12.2Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Intensityfigure

Metricnumerator

Metricdenominator

%changefrom

previousyear

Directionof

changefrom

previousyear

Reason for change

0.0005metrictonnesCO2e

unit totalrevenue 21 Decrease

On the reporting year Enaex revenue increased 1% from 2012 but our total scope1+2 decreases 78005tCO2 (21%) from base year 2012 due emission reduction activities (CDM and energy efficiency projects)Data: 2012 Total gross global emissions (scope1+2): 375466 tCO2 2012 Enaex total revenue:641.429.000 USD 2012 Intensity figure: 0.0006 tCO2/USD 2014 Total gross global emissions (scope1+2):297441 tCO2 2014 Enaex total revenue: 645.950.000 USD 2014 Intensity figure: 0.0005 tCO2/USDTherefore we arrived 21% decrease in intensity revenue figure

CC12.3Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per full time equivalent (FTE) employee

Intensityfigure

Metricnumerator

Metricdenominator

%changefrom

previousyear

Directionof

changefrom

previousyear

Reason for change

metricFTE

On the reporting year Enaex FTE increased in 234 new full time employees (+16%) since 2012 but our totalscope1+2 decreases 78005 tCO2 (21%) from base year 2012 due emission reduction activities (CDM andenergy efficiency projects) Data: 2012 Total gross global emissions (scope1+2): 375466 tCO2 2012 FTE:



173.4 tonnesCO2e

employee 32 Decrease 1480 2012 FTE Intensity figure: 253.7 tCO2/FTE 2014 Total gross global emissions (scope1+2): 297441tCO2 2014 FTE: 1714 2014 FTE Intensity figure: 173.4 tCO2/FTE Therefore the FTE intensity figuredecreased 32% (80,25 tCO2)

CC12.4Please provide an additional intensity (normalized) metric that is appropriate to your business operations

Intensityfigure

Metricnumerator

Metricdenominator

%changefrom

previousyear

Directionof

changefrom

previousyear

Reason for change

0.38metrictonnesCO2e

metric tonneof product 18 Decrease

On the reporting year Enaex ammonium nitrate production were reduced in 29648 metric tonnes (4%) andour total scope1+2 decreases 78005 tCO2 (21%) from base year 2012 due emission reduction activities(CDM and energy efficiency projects) Therefore the intensity figure decrease 18% in tCO2/ metric tones ANfigure Data: 2012 Total gross global emissions (scope1+2): 375466 tCO2 2012 AN production: 811344 ton2012 AN Production Intensity figure: 0.46 tCO2/ton AN 2014 Total gross global emissions (scope1+2):297441 tCO2 2014 AN production: 781696 ton 2014 AN Production Intensity figure: 0.38 tCO2/tonANTherefore the AN Production intensity figure decreased 18% (0,08 tCO2/ton AN)

Further Information

Attachments

https://www.cdp.net/sites/2015/92/48792/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC12.EmissionsPerformance/2014 vs, 2012 Scope1+2Emission Reductions.pdfhttps://www.cdp.net/sites/2015/92/48792/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC12.EmissionsPerformance/1505 Intensity EmissionFigures.pdf

Page: CC13. Emissions Trading

CC13.1Do you participate in any emissions trading schemes?

Yes

CC13.1aPlease complete the following table for each of the emission trading schemes in which you participate

Scheme name Period for which data issupplied

Allowancesallocated

Allowancespurchased

Verified emissions in metric tonnesCO2e Details of ownership

European UnionETS

Thu 26 Jul 2007 Wed 31 Dec2014 0 0 4680322 Facilities we own and

operate

CC13.1bWhat is your strategy for complying with the schemes in which you participate or anticipate participating?

Enaex strategy for complying the EU ETS is following and proceed accordingly CDM methodologies and being supported by specialized company (Carbon Climate

https://www.cdp.net/sites/2015/92/48792/Climate%20Change%202015/Shared%20Documents/Attachments/ClimateChange2015/CC12.EmissionsPerformance/2014%20vs,%202012%20Scope1+2%20Emission%20Reductions.pdf

https://www.cdp.net/sites/2015/92/48792/Climate%20Change%202015/Shared%20Documents/Attachments/ClimateChange2015/CC12.EmissionsPerformance/1505%20Intensity%20Emission%20Figures.pdf



Protection) from Austria which has good understanding of the ETS.Enaex has set 6 months monitoring periods which are audited and verified by TUV Sud as DOE. They check all provided information and data in order of complying with the

CC13.2Has your organization originated any projectbased carbon credits or purchased any within the reporting period?

Yes

CC13.2aPlease provide details on the projectbased carbon credits originated or purchased by your organization in the reporting period

Creditorigination or

creditpurchase

Projecttype Project identification Verified to

which standard

Number ofcredits (metrictonnes of CO2e)

Number of credits (metrictonnes CO2e): Riskadjusted volume

Creditscancelled

Purpose,e.g.

compliance

CreditOrigination N20

Project 1229 "Catalytic N2O destructionproject in the tail gas of the nitric acid plantPANNA 3 of Enaex S.A"

CDM (CleanDevelopmentMechanism)

513565 513565 NoOther:NEFCOselling

CreditOrigination N20

Project 5393 "Catalytic N2O destructionproject at the new nitric acid plant PANNA 4of Enaex S.A."

CDM (CleanDevelopmentMechanism)

162335 162335 NoOther:NEFCOselling

Further Information

Page: CC14. Scope 3 Emissions

CC14.1Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources ofScope 3emissions

Evaluationstatus

metrictonnesCO2e

Emissions calculation methodology

Percentage ofemissions calculatedusing data obtainedfrom suppliers or

value chain partners

Explanation

Purchasedgoods andservices

Relevant,calculated 778514

WBCSDWRI (2011), The Greenhouse Gas Protocol – Corporate Value Chain (Scope 3)Ammonia (most relevant supply) emission factor: 2.11 kg CO2 / kg NH3 obtained fromhttp://winnipeg.ca/finance/findata/matmgt/documents//2012/6822012//6822012_Appendix_HWSTP_South_End_Plant_Process_Selection_Report/Appendix%207.pdf

0.00%

Capital goods Notevaluated 0 0.00%

Fuelandenergyrelatedactivities (notincluded inScope 1 or 2)

Notrelevant,calculated

2398WBCSDWRI (2011), The Greenhouse Gas Protocol – Corporate Value Chain (Scope 3)Diesel emission factor 0.56 obtained from: 2012 Guidelines to Defra / DECC's GHGConversion Factors for Company Reporting

0.00%

Upstreamtransportationand distribution

Relevant,calculated 24756 WBCSDWRI (2011), The Greenhouse Gas Protocol – Corporate Value Chain (Scope 3) 0.00%

Waste Not



Wastegenerated inoperations


250 WBCSDWRI (2011), The Greenhouse Gas Protocol – Corporate Value Chain (Scope 3) 0.00%

Business travelNotrelevant,calculated


Employeecommuting



Upstreamleased assets

Notevaluated 0 0.00%

Downstreamtransportationand distribution

Relevant,calculated 63696 WBCSDWRI (2011), The Greenhouse Gas Protocol – Corporate Value Chain (Scope 3) 0.00%

Processing ofsold products


Use of soldproducts


End of lifetreatment ofsold products


Downstreamleased assets


Franchises Notevaluated 0 0.00%

Investments Notevaluated 0 0.00%

Other(upstream)


Other(downstream)



No third party verification or assurance

CC14.3Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?

Yes

CC14.3aPlease identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Sources of Scope 3emissions

Reasonfor

change

Emissionsvalue

(percentage)

Directionof

changeComment

Purchased goods &services

Changein output 3 Decrease In the reporting year 23797 tCO2 were decreased at scope3 due less supplies purchased Our total scope3

emissions on 2012 (base year) were 923727 tCO2 Therefore, we arrived at 3% decrease



Downstreamtransportation anddistribution

Changein output

3 Decrease In the reporting year 29813 tCO2 were reduced by an logistic efficiencies in downstream transportation.Our total scope3 emissions on 2012 (base year) were 923727 tCO2 Therefore, we arrived at 3% decrease

CC14.4Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)

Yes, our customers

CC14.4aPlease give details of methods of engagement, your strategy for prioritizing engagements and measures of success

The methods that Enaex has used in order to engage with its costumers on GHG emissions and climate change strategies has to do with making developments regardingenergy savings downstream at mining process and the calculation of carbon footprint of explosives products.Regarding Energy savings downstream, Enaex has developed a product called Energex® which has higher energy and power of fragmentation reducing mineral “work index”allowing less Energy consumption at milling process.Another engagement method with its costumers has been the explosives carbon footprint accounting which has allowed Enaex be the first mining supplier on providing theemission factor of its products for mining scope 3 calculation.So far, the strategy for prioritizing engagements has been following Enaex costumer’s needs regarding climate change adaptation. Success measurement of this strategy isfairly recent and has been done last two years by an annual “Customer Satisfaction Survey”. Nevertheless, it is planned continuing with this survey as an ongoing practice.In the other hand, during 2015 Enaex has started to engage its suppliers with sustainability and climate change involvement by inviting some of them to participate (Heraeusand CF) in an interview that the UK magazine “Sustainable Business” magazine made about Enaex and Chilean mining industry. For a near future it is planned to help themon their carbon footprint calculation.

Further Information

Attachments

https://www.cdp.net/sites/2015/92/48792/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC14.Scope3Emissions/ENAEX Final.pdf

Module: Sign Off

Page: CC15. Sign Off

CC15.1Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name Job title Corresponding job categoryPablo Busquet Chief Financial Officer Chief Financial Officer (CFO)

Further Information

CDP: [D][,]

https://www.cdp.net/sites/2015/92/48792/Climate%20Change%202015/Shared%20Documents/Attachments/ClimateChange2015/CC14.Scope3Emissions/ENAEX%20Final.pdf