|2014 SQM SUSTAINABILITY REPORT

For more information regarding this report and sustainable development efforts at SQM, please contact us at:

[email protected]

www.sqm.com

Cover photo: Puna plover (Charadrius alticola), Salar de Atacama, Antofagasta Region. 02 / 03

|Index 1| 2| 3|

ABOUT THIS REPORT 02 SQM 14 OUR PEOPLE 42 OUR NEIGHBORS 72

SQM: The Year in Review 2014 04 SQM 16 Our People 44 Our Neighbors 74 About this Report 06 Our History 17 Employee Profile 45 Historical Heritage 76 Stakeholders 08 Milestones in Our History 18 Professional Development 52 Education and Culture 78 Relations with Organizations Corporate Governance Workplace Safety 60 Social Development 84 and Institutions 10 Framework 23 Our Value Chain 66 Our Commitments 90 Organization and Corporate Más Proveedores Tarapacá 69 Governance 24 Our Commitments 70 Legal and Ownership Structure 30 Corporate Principles 32 Sustainable Development Policy 34 SQM in Chile and the World 36 Production Process 38 Our Products 40 ABOUT THIS REPORT

4| 5| 6| 7|

ENVIRONMENTAL OUR CLIENTS 120 ECONOMIC PERFORMANCE 132 MATERIAL ASPECTS AND COMMITMENT 92 GRI INDICATORS 142 Our Clients 122 Economic Performance 134 Environmental Commitment 94 Sales and Product Markets 124 Financial Results 135 Material Aspects 144 Biodiversity 96 Logistics and Distribution Generation and Distribution GRI Indicators 146 Species with Network 125 of Added Value 138 Our Accolades 166 Conservation Status 98 Our Certifications 126 Our Commitments 140 Environmental Monitoring Responsible Care 127 Our Awards 141 Plan in the Salar de Atacama 100 Ongoing Assistance 128 Environmental Monitoring Commercial Events 129 Plan in the Salar de Llamara 102 Our Commitments 130 Llamara Trail 105 Waste Management 106 Raw Materials and Inputs 108 Energy 110 Air Emissions 112 Water 114 Investments in Environmental Matters 116 Our Commitments 118 04 / 05

SQM THE YEAR IN REVIEW 2014

hile is making great strides towards its commitment to the environment. The reinforced our internal processes and Code becoming a developed nation. Company is committed to developing products of Ethics as a new navigational chart that SQM has played a major role in that help generate higher-yield crops and clearly, transparently and responsibly outlines Cthis process in terms of its contribution as a improve health by contributing to the creation our commitment to society and neighboring sustainable company that creates value for the of cleaner energy. communities for what we aspire to be a new communities where it operates, its employees, stage for the Company. shareholders, suppliers and clients. Within this context, values-based corporate policies take on great meaning. As a result, Lastly, I invite you to learn more about our This contribution is framed within humanity’s the Company’s management and corporate performance in sustainability matters in current need to move towards a world where governance bodies will work to strengthen 2014, and hope you to find this report to be of environmental, economic and social aspects the role that SQM plays in society and in the interest. build off one another and help protect the communities near our operations. We have planet for future generations. collaborated with these stakeholders for many years to ensure good neighbor relations We are the world’s largest producer of iodine, with an emphasis on education, micro- Cordially, potassium nitrate, lithium hydroxide and entrepreneurship, environmental protection industrial sodium nitrate and an important and conservation of historical and cultural producer of lithium carbonate. The foundations heritage. for each of our business lines are sound, and demand continues to grow. Although we The challenge will lie in demonstrating the experienced price reductions in some business values that have led to SQM’s recognition on lines, our Company is known for being a low- foreign markets as an innovative organization cost producer for most of our products. We with an efficient business model and ensuring confirmed this reputation once again in 2014. that last year’s incidents are seen as a learning process that are not representative of our daily Patricio de Solminihac T. SQM has focused efforts on streamlining actions or our employees. Therefore, we have production while prioritizing and strengthening CHIEF EXECUTIVE OFFICER OF SQM ABOUT THIS REPORT

Dual Plant MOP H II, Salar de Atacama 06 / 07

ABOUT THIS REPORT THIS REPORT HAS BEEN PREPARED IN ACCORDANCE WITH THE GLOBAL REPORTING INITIATIVE (GRI) PRINCIPLES AND CONFIRMS SQM’S COMMITMENT TO CONTINUE THIS TRANSPARENT PRACTICE.

his is the sixth edition of SQM’s version of the GRI principles, known as GRI4. For more information on this report and Sustainability Report, which reports SQM has chosen not to externally verify this sustainable development efforts at SQM, on the Company’s performance in report. please contact us at: Tsocial, environmental and financial matters for the year ended December 31, 2014. All quantitative information presented in [email protected] charts and tables uses the same basis of www.sqm.com By publishing this document, SQM confirms calculation and measurement as in 2013, except its commitment to continue this transparent for changes between GRI3.1 and GRI4. For all practice each year. indicators or aspects modified in GRI4, we have made an added effort to contribute data for This report has been prepared in accordance 2013 and 2012 so that the reader can compare with the “Core” option offered in the fourth the Company’s sustainability performance to prior periods. ABOUT THIS REPORT

SQM generates different opportunities and uses diverse tools for building ties with neighboring communities in order to contribute to their educational, social, cultural and local business development and protection of the environment. 08 / 09

STAKEHOLDERS G4-24/ G4-25/ G4-26/ G4-27 FOR SQM, GOOD RELATIONS ARE THE RESULT OF AN ARRAY OF EFFORTS TO CULTIVATE TIES WITH THE COMMUNITY, WORKERS, CONTRACTORS AND SUPPLIERS, SHAREHOLDERS AND CLIENTS.

Mrs. Laurencia Soza, a resident of the community of Talabre and grant recipient of the “Lend a Hand to Your Community” program, used the funds to create a dried fruit and herb business.

QM has independently identified When we first began preparing the 2014 SQM of contractors and suppliers of goods and those persons or institutions Sustainability Report, as part of the materiality services); to specify the members of each with which it engages based on and stakeholder selection processes proposed group; and to provide greater detail on how, Sfour elements: needs, impacts, interests and by GRI4 we decided to review the stakeholders and how frequently, we engage with them. expectations. identified in prior reports. Through this process, we identified the need to incorporate more information for some groups (e.g. a list ABOUT THIS REPORT

Who They Are Interests and Expectations How We Engage

Daily interactions in the work place with an open-door policy. Each supervisor or area manager has direct communication with the workers that report to him or her, thus allowing opportunities for improvement or conflicts to be identified in a timely manner. Salaries, benefits, quality of Workers employed by SQM with Periodic meetings with unions as well as gatherings for employees with the CEO, senior Employees life, professional development, open- and fixed-term contracts. vice presidents and managers. information about the Company. Internal communication channels such as screens in common areas, newsletters, the intranet and mailings are used to officially inform employees of developments in different areas or places, thus bridging the geographic divide and delivering reliable information.

Transparent bidding processes, Meetings with personnel from the Contracting Department and the specific areas Contractors Contractors and suppliers of payments within agreed-upon contracting each service, induction courses, safety training and special programs for goods and services. timelines and conditions, and Suppliers supplier development. development as suppliers.

Capitalization of their investment The Company's main series A and financial performance that Board meetings, regularly issued information, financial reports, site visits and shareholder Shareholders and B shareholders. allows for the sustainability of the meetings. Company over time.

Fulfillment of commitments made Farmers, pharmaceutical regarding product supply and quality companies, car manufacturers Periodic communication with and visits to clients, client site visits, surveys on products Clients in accordance with agreed-upon and technology companies, and operating standards. timelines, production processes with among others. good standards, product safety.

Creation of direct and indirect jobs, Periodic meetings with representatives/leaders, site visits, participation in local working Residents of communities support for the social and economic groups, involvement in community activities and daily interaction with programs near our operations, including development of the community developed alongside the community or organizations. Direct, ongoing relations via pertinent local, regional Community and care and appreciation for community leaders and external communications. Open and fluid communication with and national authorities, the environment and community authorities and institutional leaders. associations, foundations and at large. Pertinent, fluid Direct contact with the media through press releases, interviews and events organized by institutions, and media outlets. communication through. the Communications Department. 10 / 11

RELATIONS WITH

ORGANIZATIONS AND INSTITUTIONS G4-16

n order to strengthen ties with the groups. Some of the main organizations with community and improve outcomes, SQM which the Company worked in 2014 are listed Iparticipates in different ways with diverse below:

Relations with Organizations and Institutions Participation Partner Board Agreement Member

Aguas Blancas Indigenous Association

Algarrobo Social and Cultural Center

Antofagasta Industrial Association (AIA)

ArteAmerica Cultural Corporation

Belgian-Luxembourg Chamber of Commerce

Camar Atacameña Community

Camar Neighborhood Council

Campanil Triathlon Club

Catholic University of Chile

Celeste Indigenous Association

Center for Lithium Studies

CGE Foundation

Color Esperanza Foundation

CpueD Foundation

Crea Más Corporation

Chacabuco Nitrate Museum Corporation ABOUT THIS REPORT

> Continued

Relations with Organizations and Institutions Participation Partner Board Agreement Member

Chilean Federation of Industry (Sofofa)

Chilean Industrial Chemical Association (Asiquim)

Deportes Tocopilla

Foundation for Farming Innovation

Grandes Valores Foundation

Hogar de Cristo Foundation

Huanchaca Ruins Foundation

Incuba2 Corporation

Industrial-Technical Educational Development Corporation of Antofagasta (Codetia)

International Fertilizer Industry Association (IFA)

International Plant Nutrition Institute (IPNI)

Iquique Industrial Association (AII)

Juventud del Desierto Indigenous Association

Latorre de Peine Sporting Club

Municipality of María Elena

Municipality of Pozo Almonte

Municipality of San Pedro de Atacama

Municipality of Tocopilla

National Corporation for Indigenous Development

National Forestry Corporation (CONAF) Antofagasta

National Forestry Corporation (CONAF) Tarapacá

National Institute for Agricultural Development (INDAP)

National Mining Society (Sonami)

Northern Catholic University

Nitrate Museum Corporation

Pedro de Valdivia Nitrate Museum Corporation

Peine Neighborhood Council

Potassium Nitrate Association (PNA) 12 / 13

> Continued

Relations with Organizations and Institutions Participation Partner Board Agreement Member

ProCultura Foundation

Quillagua Aymara Community

Quillagua Neighborhood Council

Regional Council on Mining Safety (Coresemin) - Antofagasta

Regional Council on Mining Safety (Coresemin) - Tarapacá

San Pedro de Atacama Council of Civil Organizations

Socaire Atacameña Community

Sulphate of Potash Information Board (SOPIB)

Talabre Atacameña Community

The Antofagasta Station Cultural Center

The Northern Railway Cultural Center

The Trade Fertilizer Institute (TFI)

Toconao Atacameña Community

Toconao Neighborhood Council

University of Chile

Villa Prat Neighborhood Council

*The data in this table are updated as of March 2015.

Participation: Organizations and institutions to which the Company belongs and is an active member. This may include payment of membership fees or dues.

Partner: Organizations and institutions for which the Company provides support for initiatives of common interest.

Board Member: Organizations and institutions to which the Company belongs and holds a position on the executive board.

Agreement: Organizations and institutions with which the Company has signed collaboration agreements to develop projects of common interest. ABOUT THIS REPORT

Potassium salts and lithium brine are obtained from solar evaporation ponds in the Salar de Atacama and processed into derivatives. 14 / 15

1|SQM

TOGETHER WE MAKE THE BEST TEAM SQM

Our employees breathe life into SQM. Their effort, excellence, commitment and respon- sibility help the Company retain its position among industry leaders. 16 / 17

SQM G4-3

Panoramic view of SQM’s Coya Sur production facilities.

eir to the nitrate industry, Sociedad brines in northern Chile’s Antofagasta and international distribution and sales network. Química y Minera de Chile (SQM) Tarapacá regions. is a non-metal mining company SQM’s business strategy is based on developing Hand global leader in its five business lines of With 47 years in business, SQM has built a and strengthening its long-term competitive specialty plant nutrition, iodine and derivatives, reputation as a global pioneer by incorporating advantages. lithium and derivatives, industrial chemicals innovation into its non-metal mining and potassium, obtained from caliche ore and processes and products and strengthening its SQM

OUR HISTORY

aliche ore deposits began to be and started developing facilities to produce This development was based on hard work and commercially mined in Chile in 1830, potassium and lithium. This new growth innovation in both its production processes and making the nation the global leader phase included major progress in operations sales network. SQM has devised and researched Cin the sodium nitrate industry until the end of and technology needed to produce diverse different solutions to enhance productivity the 19th century. products from this salt flat. Investments were and product quality that have resulted in made in extraction and solar evaporation proprietary technologies. For example, using During the 20th century, specifically in the systems for brine and production plants for historical information, lab research and pilot 1930s, the Chilean Economic Development potassium chloride, potassium sulfate and programs, the Company developed a process for Agency (CORFO), commissioned to modernize lithium carbonate. SQM also invented several prilling and granulating nitrates, incorporating the Chilean economy, proceeded to reorganize production processes and operating methods new technologies to make soil fertilizers and the nitrates industry. These efforts led to the using both internal resources and know-how inaugurating a modern plant with cutting-edge union of CORFO and Compañía Salitrera Anglo from local and foreign experts. technology in Coya Sur in 2007. It has also Lautaro, bringing to life Sociedad Química y designed processes to obtain products with Minera de Chile, or SQM. From that point, the Beginning in 2001, SQM began a new stage high purity and particular qualities in order to Company concentrated efforts on modernizing of expansion by signing several commercial enter more stringent markets, such as battery- its production plants, strengthening its logistics agreements with important international grade lithium carbonate and lithium hydroxide network and adding value to its products. companies, expanding its production capacity and, more recently, nitrate products that can be and the extensive sales network for which it is used in solar power plants. It made major changes to its mineral extraction known today. and processing methods, opened fertilizer SQM’s technological development capability mixing plants in Chile, Belgium, Mexico and Since 2003, it has implemented a series of has also enabled it to patent many of its the United States and added new products to initiatives to expand its production capacity processes and products. It currently has 23 its portfolio. One of these new products was of lithium, potassium, nitrate and iodine in its patents in Chile, the US, Japan, Argentina potassium nitrate, which quickly positioned production plants in Coya Sur, Salar de Atacama, and Bolivia for its lithium, iodine and nitrate itself in the market as the ideal product for Salar del Carmen and Nueva Victoria. production processes. greenhouse crops. Worth highlighting are its modern Interestingly, SQM began as essentially a In 1993, SQM began its international financial crystallization, prilling and granulation plants producer and seller of fertilizers and today has expansion by placing American Depositary in Coya Sur and its potassium plant in the Salar become an international company with major Receipts on the New York Stock Exchange. That de Atacama. global presence in multiple business lines. same year, the Company began leasing mining claims in the Salar de Atacama from CORFO 18 / 19

MILESTONES IN OUR HISTORY

1926 – 1971 1983 – 1994 1995 – 2001 1926: The Guggenheim family acquires land 1983: SQM’s privatization process begins, 1995: SQM obtains the first environmental in the El Toco sector and opens the María Elena concluding in 1988, and pension funds acquire permit in the Salar de Atacama and begins nitrate office. a stake. producing potassium chloride. The Company’s second issuance of ADR takes place to access 1931: Pedro de Valdivia begins operations 1985: Important production developments funds from international markets. using the Guggenheim production system to are incorporated and the heap leaching process manufacture sodium nitrate and iodine. is first applied in extracting nitrates and iodine. 1997: SQM begins producing lithium carbonate, which is made from lithium brines 1951: A nitrate crystallizing plant is built in 1986: Potassium nitrate is first produced from the Salar de Atacama, in its facilities in Coya Sur in order to take advantage of nitrate in Coya Sur using a completely new process the Salar del Carmen. precipitation from solar evaporation ponds. designed by SQM. 2000: The Company expands its potassium 1968: SQM is created through the merger 1993: The Company begins operations at chloride production in the Salar de Atacama of Corporación de Ventas de Salitre y Yodo, its technical-grade potassium nitrate plant and builds a new potassium nitrate plant at Compañía Salitrera Anglo Lautaro, Compañía and completes its first share issuance on Coya Sur. Victoria and the Chilean government. international markets through its ADR program. 2001: A commercial distribution agreement 1971: SQM is nationalized, with CORFO taking 1994: SQM becomes one of the first Chilean is signed with the Norwegian company Yara 100% control of the Company. companies to obtain the International Quality International (ASA), enabling SQM to achieve Certification ISO 9001 for its iodine plant. significant cost synergies and geographic coverage for its specialty plant nutrition business. SQM

2002 – 2005 2006 2007 – 2008

2002: An environmental management and 2006: The Company issues its Sustainable 2007: Production begins at the new nitrate corporate quality system is implemented; Development Policy, which establishes the prilling and granulation plant at Coya Sur. The “Lend a Hand to Your Community” grants guiding principles for SQM’s commitment. are awarded for the first time, designed to The micro-entrepreneurial funding competition support social initiatives developed by our own SQM acquires DSM’s iodine business in was created as a way to support business employees to benefit neighboring communities. Chile and makes investments to expand the initiatives in communities near our operations. production capacity of its iodine plant in Nueva 2003: Lithium carbonate production capacity Victoria. The project to refurbish the industrial area of in the Salar del Carmen is increased to 32,000 the Humberstone nitrate office begins. tons per year. The Company obtains environmental approval to increase extraction in the Salar de Atacama, 2008: SQM increases its lithium carbonate accompanied by a robust hydrological and 2004: ISO 9001:2000 certification is obtained capacity to 40,000 tons per year and enters biotic environmental monitoring plan and an for lithium carbonate. into a joint venture with Migao Corporation innovative early warning plan. to produce and distribute potassium nitrate in 2005: China. SQM purchases Kemira Emirates Improvements are made to the tourist facilities Fertilizers Company (Kefco)—a company that at Laguna de Chaxa, in collaboration with the Investments are made to rebuild the town of manufactures soluble fertilizers. This same National Forestry Corporation. María Elena following the 2007 earthquake. year, lithium hydroxide production begins in a SQM builds two residential facilities for 772 new plant built in the Salar del Carmen. The first literary competition “Cuentos de la workers with the highest standards in the Pampa” is held. mining industry. 20 / 21

...MILESTONES IN OUR HISTORY

2009 -2012 2013

2009: SQM signs new joint ventures with sea level. This community program initiated SQM’s operations in Nueva Victoria are certified Coromandel (India), Qingdao Star (China) and in 2008 is part of the Atacama Tierra Fertil in Responsible Care by the Chilean Industrial Roullier (France). Program sponsored by the Company. Chemical Association (ASIQUIM).

Capstone Mining Corp. signs an agreement 2010: In Dubai, SQM Vitas launches a new In collaboration with the Crea+ Foundation, a with SQM for an option to acquire a majority line of soluble phosphate products. mathematics assistance program is started in the town of San Pedro de Atacama. interest in any metals found in a prospecting project in the province of Taltal. Environmental approval is obtained for the Pampa Hermosa project to expand production A project begins to restore the railway station SQM sells royalties from the Antucoya project of iodine and nitrates in Nueva Victoria, known as “La 32” in the Tarapacá Region. to Antofagasta Minerals and initiates a plan to Tarapacá Region, with complete environmental increase productivity and reduce costs. monitoring and early warning plans. 2012: SQM expands production capacity of potassium products in its facilities in the The Center for Environmental Education in Salar de Atacama, yielding approximately 2 2011: Production commences in a new the Pampa del Tamarugal National Reserve million tons per year, while lithium carbonate potassium nitrate plant in Coya Sur, increasing is inaugurated in the Tarapacá Region, in production capacity in the Salar del Carmen production by 300,000 tons per year, and a conjunction with the National Forestry reaches 48,000 tons per year. potassium nitrate plant is inaugurated in China Corporation. together with Migao Corporation. Iodine production in Nueva Victoria increases, As part of its community programs, the giving SQM total installed capacity of 12,500 Residents of Toconao develop Ayllu, a new Company and the town of Quillagua collaborate brand of wine produced at 2,400 meters above tons of iodine per year. to launch and begin operating a high-tech greenhouse. SQM

2014

HIGHLIGHTS 2014 G4-13

›› The Company places US$250 million in ›› The Port of Tocopilla posted record monthly ›› The fifth version of the literary competition international bonds in the United States, shipping figures with 229 thousand tons “Cuentos de la Pampa” is held. thus demonstrating that market’s risk- of bulk product and 21 thousand tons of weighted valuation of SQM. packaged product. ›› An exhibit entitled “Industrial Life in the Nitrates Industry” opens at the Huanchaca ›› The LEAN work methodology is successfully ›› The Coya Sur atmospheric plant in Ruins Museum in Antofagasta. implemented through a program known Antofagasta achieves record annual as M1. Part of the Company’s efforts to production for nitrate salts, manufacturing cut costs and enhance productivity, this 376,000 tons, initiative sets standards for reducing losses from all types of waste, thus ›› while the Nueva Victoria iodine plant decreasing energy and water consumption. in Tarapacá achieves record annual The M1 program led to an important boost production of 5,724 tons. in production in the atmospheric and potassium nitrate plants in Coya Sur, ›› In partnership with the National Forestry while reducing costs and per-unit energy Corporation, the Puquios de Llamara consumption, optimizing the use of water Observation Trail is inaugurated in the and achieving these results with zero Pampa del Tamarugal National Reserve in accidents. the Tarapacá Region. 22 / 23

SQM’s senior executives are based at Its headquarters in the city of Santiago. SQM

CORPORATE GOVERNANCE

FRAMEWORK G4-14

QM has committed to continuously TO FOCUS THE EFFORTS OF TO UNDERSCORE ONE OF improving its corporate governance THE BOARD OF DIRECTORS THE BOARD OF DIREC- practices in order to remain an AND SENIOR MANAGE- TORS’ MOST IMPORTANT Sethically driven organization, focused on the MENT ON MAXIMIZING THE OBJECTIVES, WHICH IS TO equal treatment of all shareholders, working to 1| 3| VALUE OF THE COMPANY PROVIDE THE COMPANY’S uphold their interests, maximizing investment FOR ALL OF ITS SHARE- VISION, GOALS AND THE returns and optimizing shareholder value. HOLDERS, AS WELL AS FOR STRATEGY TO ATTAIN SUCH ITS CLIENTS AND EMPLOY- GOALS. SQM’S CORPORATE EES. GOVERNANCE FRAMEWORK HAS FOUR MAIN PURPOSES:

TO REAFFIRM THE BOARD TO STRESS THE BOARD OF OF DIRECTORS’ DUTY TO DIRECTORS’ RESPONSI- PROVIDE GUIDELINES BILITY TO CONTINUOUSLY 2| THAT WILL LEAD SENIOR 4| MONITOR AND EVALUATE MANAGEMENT TO ACHIEVE SENIOR MANAGEMENT’S BEST PRACTICES AT EVERY PERFORMANCE IN ACCOR- LEVEL OF THE ORGANIZA- DANCE WITH THE COMPA- TION. NY’S VISION AND STRATE- GY.

The full text of SQM´s Corporate Governance Framework is available at: www.sqm.com. 24 / 25

ORGANIZATION

AND CORPORATE GOVERNANCE G4-34

SQM’s corporate governance practices strive to uphold ethical conduct within the organization. The Company reviews them on an ongoing basis to ensure that they are applicable to its current circumstances.

BOARD OF DIRECTORS The Board of Directors of SQM is comprised The board has four committees: The Audit and J. Waitzer; and the Corporate Governance of eight members elected by the Company’s Financial Risk Committee, comprised of Hernán Committee, comprised of: Robert A. Kirkpatrick, shareholders. Based on the Company’s needs, Büchi B., Hans Dieter Linneberg A. and Edward Hans Dieter Linneberg A. and Edward J. Waitzer. at the ordinary shareholders’ meeting held J. Waitzer; the Safety, Health and Environment on April 24, 2015, the shareholders reelected Committee, comprised of Joanne L. Boyes, No board member holds a managerial position all board members for a three-year period Arnfinn F. Prugger and Wolf von Appen B.; within the Company. One of the board’s first and appointed Juan Antonio Guzmán M. as the Ad-Hoc Committee, comprised of Robert concerns has been to strengthen corporate chairman. A. Kirkpatrick, Wolf von Appen B. and Edward governance and best practices with initiatives SQM

such as restructuring the chain of command It is comprised of three directors. Independence AD-HOC COMMITTEE for the Office of Control and Compliance. This requirements under Chilean and NYSE The purpose of the Ad-Hoc Committee, formed division, which previously reported to the Chief regulations must be taken into consideration on February 26, 2015, is to internally investigate Executive Officer, now reports directly to the in selecting the members of the AFRC. the incidents of public interest involving Audit and Financial Risk Committee. our Company. It is authorized to request This committee must meet at least four times any independent external advisory services The board of directors monitors management’s per year. deemed necessary. Once it has completed its performance and meets each month to analyze investigation, it will present its conclusions the Company’s progress, assess investment The AFRC presents pertinent information to the and potential courses of action to the board opportunities and approve general guidelines board after each meeting. of directors. and directives for SQM’s development. In compensation for their time, each director SAFETY, HEALTH AND CORPORATE GOVERNANCE receives a fixed monthly stipend in Unidades ENVIRONMENT COMMITTEE COMMITTEE de Fomento (UF) and a percentage of the The purpose of the Safety, Health and This committee defines and establishes the Company’s profits once per year. Environment Committee (SHEC) is to support different attributes and obligations of the the board in fulfilling its duties by reviewing board and its committees, working to ensure SQM’s board of directors must exercise its best and recommending policies related to safety, compliance with the existing corporate judgment in order to act in line with what it health and environmental matters affecting governance policy. reasonably believes to be the interests of the the Company. Company and its shareholders.

The SHEC is comprised of three directors SQM has corporate governance guidelines that and meets as necessary. It is responsible for are designed to guide the board in exercising its periodically reviewing the Company’s safety, duties with the Company and its shareholders. health and environmental policies, monitoring These guidelines are not intended to serve as a the status of compliance with these policies set of legal obligations, but rather a framework and applicable regulations and reviewing that the board can use to manage its dealings. emergency response plans. AUDIT AND FINANCIAL The SHEC presents pertinent information to the RISK COMMITTEE entire board after each meeting. The objective of the Audit and Financial Risk Committee (AFRC) is to help the board fulfill its duties with respect to control and financial reporting matters. The AFRC works to control the Company’s maximum exposure to financial risk in accordance with defined policies. 26 / 27

Each year, the sustainability report is sent to the SHEC for comments before being published.

CHAIRMAN VICE CHAIRMAN DIRECTOR DIRECTOR Juan Antonio Guzmán M. Edward J. Waitzer Hernán Büchi B. Joanne L. Boyes Industrial And Chemical Engineer, Lawyer, Faculty Of Law, Civil Engineer Chartered Accountant Universidad Católica De Chile University Of Toronto Universidad De Chile University Of Saskatchewan Id Number: 5.123.918-0 Passport No. Qd 618004 Id Number: 5.718.666-6 Passport No. Qb 604035 SQM

ORGANIZATION THE COMPANY’S BOARD OF DIRECTORS CONSISTS OF:

DIRECTOR DIRECTOR DIRECTOR DIRECTOR Robert A. Kirkpatrick Hans Dieter Linneberg A. Arnfinn F. Prugger Wolf Von Appen B. Lawyer Economist Geoscientist Businessman University Of Saskatchewan Universidad De Chile University Of Saskatchewan Id Number: 2.884.455-7 Passport No. Ga 510400 Id Number: 8.321.556-9 Passport No. Ga 567244

The current board of directors was elected for a three-year period in the ordinary general shareholders’ meeting held April 24, 2015. As established in the Company’s corporate governance framework, anyone may contact the directors by email at [email protected]. 28 / 29

CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL NITRATES AND IODINE POTASSIUM AND Patricio de Solminihac T. OFFICER AND BUSINESS OPERATIONS SENIOR LITHIUM OPERATIONS Industrial Engineer DEVELOPMENT SENIOR VICE PRESIDENT SENIOR VICE PRESIDENT

Universidad Católica de Chile VICE PRESIDENT Carlos Díaz O. Juan Carlos Barrera P. Id Number: 6.263.302-6 Ricardo Ramos R. Industrial Engineer Industrial Engineer Industrial Engineer Universidad Católica de Chile Universidad Católica de Chile Universidad Católica de Chile Id Number: 10.476.287-5. Id Number: 10.528.182-K Id Number: 8.037.690-1 SQM

MANAGEMENT THE COMPANY’S UPPER MANAGEMENT GROUP CONSISTS OF:

SENIOR COMMERCIAL HUMAN RESOURCES EXPLORATION SENIOR GENERAL COUNSEL AND VICE PRESIDENT AND SUSTAINABLE VICE PRESIDENT LEGAL AFFAIRS SENIOR Eugenio Ponce L. DEVELOPMENT SENIOR Daniel Jiménez Sch. VICE PRESIDENT

Mechanical Engineer, VICE PRESIDENT Industrial Engineer Matias Astaburuaga S. Universidad Pauline De Vidts S. Universidad Católica de Chile Lawyer Industrial Engineer Católica de Valparaíso. Id Number: 6.362.533-7 Universidad Católica de Chile Universidad Católica de Chile Id Number: 5.370.715-7 Id Number: 7.080.469-7 Id Number: 9.668.138-0

On March 16, 2015, the board named Patricio de Solminihac T. the new Chief Executive Officer of SQM. 30 / 31

LEGAL AND

OWNERSHIP STRUCTURE G4-7 SQM S.A. IS A PUBLICLY TRADED CORPORATION WITH SHARES LISTED ON THE SANTIAGO (CHILE) AND NEW YORK (U.S.) STOCK EXCHANGES. AS OF DECEMBER 31, 2014, THE COMPANY’S MAJORITY SHAREHOLDERS ARE:

Series A + B Number of Shares Percent Ownership of Series THE BANK OF NEW YORK MELLON ADRS 61,894,725 23.52% SOCIEDAD DE INVERSIONES PAMPA CALICHERA SA 51,811,219 19.69% INVERSIONES EL BOLDO LTDA 47,293,872 17.97% INVERSIONES RAC CHILE LIMITADA 21,403,015 8.13% POTASIOS DE CHILE SA 18,179,147 6.91% INVERSIONES PCS CHILE LIMITADA 15,526,000 5.90% INV GLOBAL MINING CHILE LTDA 8,798,539 3.34% BANCO DE CHILE (ON BEHALF OF NON-RESIDENT THIRD PARTIES) 5,795,818 2.20% BANCO ITAU (ON BEHALF OF INVESTORS) 5,433,026 2.06% INVERSIONES LA ESPERANZA CHILE LIMITADA 3,711,598 1.41% BANCO SANTANDER (ON BEHALF OF FOREIGN INVESTORS) 2,912,604 1.11% EUROAMERICA C DE B S.A. 2,073,517 0.79% Subtotal Series A and B Shares 244,869,080 93.04% Total Series A and B Shares 263,196,524 100% Total Number of Series A and B Shareholders 1,285 SQM

Series A Number of Shares Percent Ownership of Series SOCIEDAD DE INVERSIONES PAMPA CALICHERA SA 44,803,531 31.37% INVERSIONES EL BOLDO LTDA 29,330,326 20.54% INVERSIONES RAC CHILE LIMITADA 19,200,242 13.44% POTASIOS DE CHILE SA 18,179,147 12.73% INVERSIONES PCS CHILE LIMITADA 15,526,000 10.87% INV GLOBAL MINING CHILE LTDA 8,798,539 6.16% INVERSIONES LA ESPERANZA CHILE LIMITADA 3,711,598 2.60% KOWA CO LTD 781,429 0.55% KOCHI SA 737,057 0.52% LA ESPERANZA DELAWARE CORPORATION 227,550 0.16% INVERSIONES RENTAMAX LIMITADA 154,000 0.11% EUROAMERICA C DE B S.A. 138,321 0.10% Subtotal Main Series A Shareholders 141,587,740 99.14% Total Series A Shares 142,819,552 100% Total Number of Series A Shareholders 415

Series B Number of Shares Percent Ownership of Series THE BANK OF NEW YORK MELLON ADRS 61,894,725 51.42% INVERSIONES EL BOLDO LTDA 17,963,546 14.92% SOCIEDAD DE INVERSIONES PAMPA CALICHERA SA 7,007,688 5.82% BANCO DE CHILE (ON BEHALF OF NON-RESIDENT THIRD PARTIES) 5,795,818 4.81% BANCO ITAU (ON BEHALF OF INVESTORS) 5,412,076 4.50% BANCO SANTANDER (ON BEHALF OF FOREIGN INVESTORS) 2,912,604 2.42% INVERSIONES RAC CHILE LIMITADA 2,202,773 1.83% EUROAMERICA C DE B S.A. 1,935,196 1.61% BANCHILE C DE B S.A. 1,799,359 1.49% AFP PROVIDA S.A. PENSION FUND C 1,469,493 1.22% AFP HABITAT S.A. PENSION FUND C 1,016,920 0.84% AFP CAPITAL S.A. PENSION FUND C 818,499 0.68% Subtotal Main Series B Shareholders 110,228,697 91.57% Total Series B Shares 120,376,972 100% Total Number of Series B Shareholders 1,190 32 / 33

CORPORATE PRINCIPLES

VISION VALUES

EXCELLENCE: SAFETY: WE COMMIT TO WOR- WE VALUE THE LIFE AND e aspire to maintain and KING WITH THE BEST HEALTH OF ALL PERSONS. strengthen our global STANDARDS OF QUALITY, WE BELIEVE THAT CARING leadership position in our 1| 3| EFFICIENCY AND EFFECTI- FOR PEOPLE IS AN ORGA- Wmain business lines—specialty plant nutrition; VENESS. WE RATIONALLY NIZATIONAL, PERSONAL iodine and derivatives; lithium and derivatives; USE THE RESOURCES THAT AND SOCIAL COMMITMENT industrial chemicals and potassium—based on WE MANAGE AND PRO- THAT IS PUT INTO PRAC- a flexible strategy towards market changes MOTE ACTIONS THAT ADD TICE IN THE WORKPLACE that maintains low production costs and high ethical standards in our treatment of VALUE. WE ACT RESPON- AND IN EACH OF OUR shareholders, employees, clients, suppliers, the SIBLY AND FULFILL OUR PRIVATE LIVES. environment and the community. COMMITMENTS. TEAMWORK : INTEGRITY: WE ENCOURAGE PEOPLE WE CONDUCT BUSINESS IN TO WORK TOGETHER. AN HONEST, FAIR, ETHI- 4| WE VALUE THE PERSO- 2| CAL, RESPECTFUL AND NAL TRAITS AND SKILLS TRANSPARENT MANNER. OF EACH PERSON AND OUR LANGUAGE IS OPEN FOSTER THE EXCHAN- AND CONSISTENT WITH GE OF IDEAS, OPINIONS OUR ACTIONS TOWARDS AND EXPERIENCES, THUS PEOPLE, THE ENVIRON- STIMULATING COLLECTIVE MENT, THE COMMUNITY, WORK. CLIENTS AND OTHER WE TREAT PEOPLE WITH ENTITIES WITH WHICH WE RESPECT, DIGNITY AND INTERACT. COURTESY TO CULTIVATE RELATIONSHIPS BUILT ON TRUST. SQM

CODE OF ETHICS

INNOVATION: ›› Maintain work relations and management WE ADDRESS WORK AND based on integrity and ethics. CHALLENGES CREATIVELY. QM is committed to abiding by the WE ENCOURAGE FLEXIBLE laws, standards and regulations of ›› Encourage and require all Directors 5| the countries in which it operates. and Employees to do their duties in an AND VARIED APPROACHES SThe company understands that there may be honorable way. TO THE WAY WE DO BUSI- NESS, CONSTANTLY PUR- traditions and customs that vary from country to country, nevertheless, these cannot deviate › Promote and respect compliance SUING BETTER SOLUTIONS › the company from its decision to act with the with applicable laws, standards and AND WAYS OF ACHIEVING highest standards of integrity and honesty. regulations. OUR OBJECTIVES. Integrity and ethics have always been a ›› Work with dedication, perfectionism, significant component of the manner in which honesty, and integrity, always acting SQM carries out its business. To act with a high consistently with SQM values and policies. sense of integrity is crucial in order to maintain trust and credibility of our Shareholders, The company will not tolerate any acts that Directors, Employees, Customers, Suppliers, deviate from standards of ethical legitimacy Government Organizations, Supervising and which could cause damage to our Entities, Communities, Stakeholders and shareholders, clients, employees, and any people, institutions and organizations related other pertinent group, including the general with the company. community.

All the directors and employees of SQM shall: This code provides policies, directives and principles that must guide the actions of ›› Promote and maintain transparency in everyone at the company. All SQM employees, their respective activities in accordance along with the Directors, are obligated to act with their position and level of according to the provisions of this code. responsibility.

The full text of SQM’s Code of Ethics is available at www.sqm.com. 34 / 35

SUSTAINABLE DEVELOPMENT POLICY

QM is committed to the sustainable ABIDING BY THE CURRENT MINIMIZING THE development of its business, LAWS AND REGULATIONS ENVIRONMENTAL IMPACTS incorporating in its day to day APPLICABLE TO ITS THAT ITS ACTIVITIES Sactivities the care and respect of the people ACTIVITIES, PRODUCTS COULD CAUSE ON ITS working at its facilities, the environment, the 1| 3| AND SERVICES, AS SURROUNDINGS, BY community and its clients. A good performance WELL AS MEET THE CONSIDERING THE in these areas is key to the success of its AGREEMENTS MADE ENVIRONMENTAL ASPECTS operations and its future development. As a VOLUNTARILY, INCLUDING AT EARLY DESIGN STAGES company with five main business lines: Specialty STANDARDS INTERNALLY OF ITS OPERATIONS, Plant Nutrients, Iodine, Lithium, Potassium and DEFINED. THEREBY IMPLEMENTING Industrial Chemicals, with production facilities CONTROLS THAT AVOID in Chile and with commercial presence abroad, SQM is committed to: DEVELOPING AND CONTAMINATION THROUGH IMPLEMENTING THE APPROPRIATE PREVENTATIVE MEASURES MANAGEMENT OF WASTES 2| AND CONTROLS NEEDED, AND EMISSIONS. IN A TIMELY MANNER, TO MINIMIZE THE RISK PROMOTING RESPONSIBLE OF INJURY AND HEALTH AND EFFICIENT USE OF HARM TO ITS OWN NATURAL RESOURCES AND EMPLOYEES AND THOSE 4| PRODUCTION SUPPLIES, IN OF CONTRACTORS AND ACCORDANCE WITH LOCAL SUBCONTRACTORS, THUS AND INTERNATIONAL BEST PROMOTING ACTIVE PRACTICE STANDARDS. PARTICIPATION OF ALL WORKERS IN RISK PREVENTION MATTERS. SQM

STATEMENT OF SUSTAINABILITY

PROVIDING ITS CLIENTS MAINTAINING OPEN AND n keeping with the principle of constant WITH HIGH QUALITY ONGOING COMMUNICATION improvement, the Company’s work is aligned PRODUCTS, WHICH WITH ITS EMPLOYEES, with the commitments that it has made MEET THE COMMITTED CONTRACTORS, CLIENTS, Ito its shareholders, clients, employees and 5| 7| partners as well as neighboring communities to STANDARDS AND SHAREHOLDERS, NEIGHBORS PROVIDING CLIENTS AND AUTHORITIES, carry out its commercial and productive work in A SERVICE THAT INFORMING THEM harmony with the environment. SQM will take ENSURES A MUTUALLY REGULARLY ABOUT ITS steps to protect people and the environment in order to make its business sustainable. BENEFICIAL LONG TERM PERFORMANCE. Everyone who works for and collaborates with RELATIONSHIP. the Company shares in this responsibility. PROMOTING CONTINUOUS MAINTAINING A GOOD IMPROVEMENT IN ITS In accordance with this Sustainable RELATIONSHIP WITH PERFORMANCE RELATED Development Policy, each year the Company NEIGHBORS AND 8| TO SAFETY, HEALTH, THE outlines new challenges that allow it to PARTICIPATING IN THE ENVIRONMENT, QUALITY AND continue to advance its performance in all 6| areas. DEVELOPMENT OF ITS RELATIONSHIP WITH THE NEARBY COMMUNITIES BY COMMUNITY. SUPPORTING PROJECTS AND ACTIVITIES WITH AN EMPHASIS ON EDUCATION, EDUCATING, TRAINING, AND CULTURE AND THE EVALUATING ITS EMPLOYEES PROTECTION OF THE AND PERSONNEL FROM ENVIRONMENT, IN ORDER 9| ITS CONTRACTORS AND TO ENHANCE THE QUALITY PARTNERS, AS ALL ARE OF THE LIVES OF THE ACTIVE AGENTS IN THE INHABITANTS OF THOSE EFFECTIVE IMPLEMENTATION COMMUNITIES. OF THIS POLICY IN ALL THE ACTIVITIES PERFORMED BY THE COMPANY. 36 / 37

SQM

IN CHILE AND THE WORLD G4-4/ G4-5 /G4-6/ G4-8/ G4-9 CHILE IS A DIVERSE COUNTRY WITH A GEOGRAPHY KNOWN FOR ITS CONTRASTS AND VARIETY OF CLIMATES.

t is here that we find the Atacama Desert— ITS MAIN COMPETITIVE SQM OFFICES IN CHILE the world’s driest desert—which spans the ADVANTAGES ARE: BOLIVIA regions of Tarapacá and Antofagasta and is ›› Synergies arising from a focus on products Ihome to SQM’s production plants. This area is derived from two unique natural resources: IQUIQUE abundant in mineral reserves of incomparable caliche ore and brine. magnitude and quality. ANTOFAGASTA ›› Low production costs thanks to extensive The iodine and nitrate reserves in the area’s areas containing high-quality natural caliche ore fields are the largest on the planet resources. and the Salar de Atacama contains brine with some of the highest concentrations of lithium ›› An exceptional team of professionals and and potassium in the world. technicians.

From these reserves, SQM obtains the products ›› Expertise and in-house technological SANTIAGO that are the basis for its unique business development of production processes. formula, one of the pillars that makes it a leader in its main business lines. ›› Infrastructure, logistics and high production volumes that help limit The products that the Company ships all distribution costs. over the world are developed from high- quality natural resources that enable it to be PACIFIC ARGENTINA ›› Significant international market share for OCEAN a cost leader. Its efforts are supported by a its products. specialized international commercial network with locations in over 20 countries. ›› International commercial network with company-owned offices in 25 countries SQM’s strategy aims to maintain and strengthen and sales in over 110 countries. its global leadership in each of its businesses based on its competitive advantages and the ›› Ongoing product development based on sustainable growth of the diverse markets in customer needs. which it does business. ›› Conservative and sound financial position. SQM

OFFICES AND PRODUCTION FACILITIES THROUGHOUT THE WORLD

DÜSSELDORF/ GERMANY MÜLHEIM AN DER RUHR/ GERMANY AMBERES/ BELGIUM SQM FACILITIES FAUVILLE/ FRANCE FLORENCIA/ ITALY JACKSON/ UNITED STATES MADRID/ SPAIN BEIJING/ CHINA COMMERCIAL OFFICE BARCELONA/ SPAIN CÁDIZ/ SPAIN QINGDAO/ CHINA UNITED STATES ATALAYA/ TURKEY ATLANTA / CHENGDU/ CHINA PRODUCTION PLANT ABU DHABI/ UNITED ARAB EMIRATES TOPOLOBAMPO/ MEXICO GUADALAJARA/ MEXICO DUBAI/ UNITED ARAB EMIRATES MANZANILLO/ MEXICO JOINT VENTURE / COMMERCIAL OFFICE ANDHRA PRADESH/ INDIA

BANGKOK/ THAILAND JOINT VENTURE / PRODUCTION PLANT GUAYAQUIL/ ECUADOR JOINT VENTURE / PRODUCTION PLANT/ LIMA/ PERU CANDEIAS/ BRAZIL COMMERCIAL OFFICE

PARANAGUA/ BRAZIL JOHANNESBURG/ SOUTH AFRICA DURBAN/ SOUTH AFRICA CHILE CAPE TOWN/ SOUTH AFRICA OPERATIONS IN CHILE

25 110 NUEVA VICTORIA COMMERCIAL OFFICES COUNTRIES SQM has commercial and thousands of clients TOCOPILLA MARÍA ELENA offices in 25 cities are reached by SQM products. COYA SUR throughout the world. PEDRO DE VALDIVIA

SALAR DE ATACAMA +2.500.000 SALAR DEL CARMEN METRIC TONS / YEAR SQM sells over 2,500,000 metric tons per year of finished product through its distribution network. PACIFIC OCEAN 38 / 39

PRODUCTION POTASSIUM/ POTASSIUM PROCESSES LITHIUM SULFATE / CHLORIDE BORIC ACID PROCESS PROCESS Extraction of brine from salt flat Extraction of brine from salt flat

Solar evaporation ponds

Solar evaporation ponds

Lithium ponds

Lithium brine to Antofagasta

Salt harvest

Salt harvest Lithium carbonate plant Boric acid plant Boric acid Potassium chloride plant

Potassium sulfate plant

Port Lithium hydroxide plant Lithium carbonate

Granulated potassium chloride Crystallized potassium chloride

Lithium hydroxide Potassium sulfate Port

Port

Port Port

POTASSIUM CHLORIDE Port LITHIUM CARBONATE BORIC ACID LITHIUM HYDROXIDE POTASSIUM SULFATE

Processes carried out fully or partially in: Salar Process carried out in: Salar de Atacama. de Atacama and Salar del Carmen. SQM

POTASSIUM/ POTASSIUM LITHIUM SULFATE / NITRATE IODINE CHLORIDE BORIC ACID PROCESS PROCESS PROCESS PROCESS Extraction of brine from salt flat Extraction of brine from salt flat Caliche ore extraction Iodide plant

Solar evaporation ponds

Crushing

Solar evaporation ponds Iodine and prilling plant

Lithium ponds Heap leaching

Iodide plant Vat leaching and crystallization Iodide plant

Lithium brine to Antofagasta Solar evaporation ponds

Salt harvest

Iodine Salt harvest Lithium carbonate plant Boric acid plant Boric acid Potassium chloride plant

Intermediate plant

Potassium chloride Potassium sulfate plant Port

Port Lithium hydroxide plant Lithium carbonate

Granulated potassium chloride Crystallized potassium chloride Finishing plant

Lithium hydroxide Potassium sulfate Port

Prilled nitrates Crystallized nitrates

Port

Port Port Port Port

POTASSIUM CHLORIDE Port BORIC ACID POTASSIUM NITRATE LITHIUM CARBONATE IODINE LITHIUM HYDROXIDE POTASSIUM SULFATE SODIUM NITRATE

Process carried out fully or partially in: María Elena, Process carried out fully or partially in: María Elena, Pedro de Valdivia and Nueva Victoria. Pedro de Valdivia, Coya Sur and Nueva Victoria. 40 / 41

IODINE AND DERIVATIVES OUR Iodine is a non-metallic element. It is violet in color and opaque, with a metallic shine. The most common uses of iodine include health care applications such as contrast media for PRODUCTS X-ray exams, products like povidone-iodine G4-4 and inclusion as a component in synthesizing pharmaceuticals, bactericides, fungicides and disinfectants.

SQM’S NATURAL RESOURCE It is also used in the food industry to prevent DEPOSITS ARE GLOBALLY iodine insufficiency. Low levels of this element UNPARALLELED, GIVING IT A during pregnancy and infancy can lead to neurological and physical development issues UNIQUE, INNOVATIVE BUSINESS in children as well as goiters and thyroid MODEL. THIS IS ONE OF THE malfunction in all ages. KEY PILLARS OF ITS STRATEGIC POSITION. Iodine has antiseptic and germicidal properties SPECIALTY because of its ability to rapidly penetrate the FROM THESE CALICHE ORE AND PLANT NUTRITION cell walls of microorganisms, causing their BRINE RESERVES, THE COMPANY protein structure and DNA to rupture. It also Specialty plant nutrients are mineral OBTAINS THE PRODUCTS FOR has industrial applications in nylon and water substances that fulfill specific, irreplaceable repellent agents. ITS FIVE BUSINESS LINES: functions in crops. This business line includes SPECIALTY PLANT NUTRITION; sodium nitrate, sodium potassium nitrate and IODINE AND DERIVATIVES; potassium nitrate, the last of which is the most important. LITHIUM AND DERIVATIVES; INDUSTRIAL CHEMICALS AND These products are used for a variety of POTASSIUM. purposes in agriculture, including efforts to boost growth and production and support reproduction. They are especially useful on farms as part of a strategy for enhancing productivity and quality in order to add value to products.

Through this business line, SQM provides specialized nutritional solutions with fertirrigation, soil and foliar applications that, coupled with the experience and know-how of our team of agricultural experts, supply the necessary elements for boosting returns in our clients’ businesses. SQM

INDUSTRIAL CHEMICALS These products—sodium nitrate, potassium nitrate, boric acid and potassium chloride— are used for industrial applications such as explosives, thermal energy storage, metals treatments, lubricants for oil extraction, fire retardants, etc.

One of the most recent industrial applications of potassium and sodium nitrates is thermal energy storage in solar power plants. Concentrated solar power (also called CSP) plants equipped with a molten salt storage system store excess heat and remain operative 24/7, which significantly increases electricity production.

LITHIUM AND DERIVATIVES Lithium—the lightest of all metals— can POTASSIUM be used in a variety of products including Potassium is a nutrient with multiple industrial rechargeable batteries, high-resistance applications that plays a key role in the glass and ceramics, lubricating greases, air development of basic functions in humans conditioning, pharmaceuticals, aluminum, and plants. In people, it helps prevent and cement, adhesives and dyes. Lithium batteries treat diseases such as high blood pressure, have higher energy density than traditional cerebrovascular complications and cognitive batteries, which allows them to store more impairment, while in plants it improves energy per weight and volume. resistance to stressors such as extreme temperatures, droughts, parasites and other SQM is one of the main lithium producers in elements. the world, boasting a 27% share of the global market. Its commitment to the industry’s The main sources of potassium for use in development and sustainability is not limited fertilizers are: potassium chloride (KCL), only to delivering high-quality products on time potassium sulfate (K2SO4) and potassium but also includes making major investments to nitrate (KNO3). SQM is the only company that ensure product availability. produces these three sources of potassium.

PROMOTING RESEARCH G4-15 Inspired by the value of innovation, SQM has forged an important relationship between internal know-how and expertise from specialists in diverse fields. As a result, it maintains agreements with institutes and universities such as the Center for Lithium Innovation at Universidad de Chile, which supports the training of new professionals and specialists, the creation of value-added products and services and the exploration of new business models in Chile.

Also worth mentioning is the Company’s strategic partnership with the scientific and technology center Care Chile UC, affiliated with Pontificia Universidad Católica de Chile, to conduct biomedical research on the benefits of using potassium in preventing high blood pressure, cerebro-muscular complications and cognitive impairment. In 2014, the Company signed a new agreement with Care Chile UC to support research related to the positive effects of lithium on human health. The main objective of these initiatives is to conduct scientific and applied research to develop new products and/ or services that improve quality of life. 42 / 43

2|Our People TOGETHER, WE ARE MORE EFFICIENT Our People

SQM values its team of associates and recognizes their qualities as well as their ability to continuously challenge themselves, use innovation to meet the organization’s goals and remain at the forefront of the global industry. 44 / 45

OUR PEOPLE SQM’S TEAM BASES ITS CONDUCT ON OUR CORPORATE VALUES. SAFETY, EXCELLENCE, INTEGRITY, TEAMWORK, INNOVATION AND SUSTAINABILITY ARE THE FOUNDATIONS OF OUR DAILY ACTIONS.

Workers in the KN03 maintenance area at Coya Sur site, Antofagasta Region.

QM’s team is comprised of providing high quality of life at work sites and are especially concerned with respecting and exceptional individuals, who are cultivating a sense of belonging. As part of our caring for the health and physical integrity of the foundation for the Company’s responsibility to our employees, we promote each team member. Sdevelopment. Therefore, we have fostered and support their corporate social responsibility a workplace culture that strives to identify, initiatives, provide benefits for them and their Through their actions, our personnel embody strengthen, develop and reinforce each families and give them opportunities for the SQM Values: Excellence, Integrity, Safety, individual’s skills with particular emphasis on training and building a career within SQM. We Teamwork, Innovation and Sustainability. Our People

EMPLOYEE PROFILE SQM HAS 4,800 EMPLOYEES THROUGHOUT THE WORLD WHO BREATHE LIFE INTO OUR COMPANY’S OPERATIONS AND COMMERCIAL PLATFORMS.

ur team is made up of a diverse EMPLOYEE STATISTICS AS OF NUMBER OF WORKERS AS OF group of people, including DECEMBER 2014 G4-9/ G4-LA1 DECEMBER 2014 BY TYPE OF operators, technicians and CONTRACT Oprofessionals, both men and women of different ages, each of whom contributes to ›› SQM provides 9,615 jobs in Chile and Type of Contract Employees the Company with their individual aptitudes around the world, including company and skills. personnel and contractors. Fixed-term contract 129 Open-term contract 4.671 Employees—categorized based on their ›› SQM has 4,800 direct employees, of which duties as general employees, supervisors and 4,610 are based in Chile and 190 are 4.800 executives—perform their functions throughout located abroad. Contractors accounted for the Company’s production and administrative 4,786 workers on average for the year 2014. facilities. ›› Of our employees based in Chile, 84% work in the Tarapacá and Antofagasta regions, while 11% are based in the Metropolitan Region.

›› At the executive level, 43 are in the Tarapacá and Antofagasta regions while 62 work in the Metropolitan Region.

›› Personnel at SQM’s commercial offices abroad represent 4% of our employees. 84% ›› Of our employees (in Chile and abroad), of SQM’s employees in Chile 97% had open-term contracts and 3% were are based in the Tarapacá employed for a fixed term. and Antofagasta regions. 46 / 47

NUMBER OF WORKERS BY NUMBER OF WORKERS BY EMPLOYEE CATEGORY AND GENDER AS OF EMPLOYEE CATEGORY DECEMBER 31, 2014

BY EMPLOYEE CATEGORY AND GENDER EMPLOYEES

MEN 98 EXECUTIVE WOMEN 17

MEN 969 SUPERVISOR WOMEN 350 4,013 MEN 3,065 3,511 GENERAL 3,513 WOMEN 301 4,800

PERSONNEL IN CHILE BY AGE GROUP AND GENDER AS OF DECEMBER 31, 2014

MEN WOMEN TOTAL

Under 30 743 137 880 1,273 1,038 30 - 39 1270 235 1,505 977 40 - 50 1168 147 1,315

Over 50 845 65 910 120 109 119 Total 4,026 584 4,610

% 83.9% 12.2% 2014 / 4,610 2013 / 4,658 2012 / 5,405 PERSONNEL IN CHILE AND ABROAD BY AGE GROUP AND GENDER AS OF DECEMBER 31, 2014

MEN WOMEN TOTAL

Technicias and Under 30 755 145 900 Operators 30 - 39 1,312 280 1,592 Professionals 40 - 50 1,211 168 1,379 Executives Over 50 854 75 929

Total 4,132 668 4,800

% 86.1% 13.9% Our People

86.1% 4,800 MALE EMPLOYEES in Chilean and foreign offices. 13.9% FEMALE

AS OF DECEMBER 48.2% AND 51.8% IS 2014 OF OUR PERSONNEL 40 IS YOUNGER IN CHILE YEARS

Women account for THE PERCENTAGE OF WOMEN WORKING AT SQM EXCEEDS 12.1% AVERAGE FIGURES FOR OF OUR PERSONNEL THE CHILEAN MINING IN CHILE. INDUSTRY. (13.9% including foreign personnel) 48 / 49

DISTRIBUTION BY AGE, EMPLOYEE TURNOVER IN CHILE BY AGE GROUP AND GENDER TURNOVER AND ABSENTEEISM G4-LA1 As of December 2014, 48.2% of our employees in MEN WOMEN TOTAL Chile were over the age of 40, while 51.8% were Under 30 164 47 211 younger than 40. This mixture of experience and new generations gives the Company a 30 - 39 236 52 288 solid foundation and vitality. 40 - 50 139 22 161 ›› The turnover rate for the year 2014 was Over 50 100 3 103 15.1%, a decrease from the 20% recorded Total 639 124 763 in 2013. Percentage 83.7% 16.3% ›› In 2014, the absenteeism rate reached 3.2%, or 0.4% less than the 2013 figure of 3.6%.

WOMEN AT SQM G4-LA13 Women represent 12.2% of SQM’s employees in Chile and 13.9% abroad. This percentage is Compensation is determined for each position well above the mining industry average in our based on factors such as education, experience, country of 9.6% according to statistics from responsibilities, etc., and does not differ by the National Geographical and Mining Service gender. (Sernageomin). To increase the earnings of women in mining, At SQM, our female employees hold a variety the Company participates in a gender working of positions such as laboratory analyst, heavy group coordinated by the Antofagasta and machinery operator, administrative assistant, Tarapacá Regional Mining Secretariats. These manager and plant supervisor. This is the result task forces are working to design a regional of the open, non-discriminatory recruiting strategy for incorporating more women into policy set out in our Code of Ethics. the mining industry.

PATERNITY AND MATERNITY LEAVE AS OF DECEMBER 2014 LA 3

MEN WOMEN

Maternity 49 20

Paternity 36 38

Total 85 58 Our People

INITIATIVE TO INCREASE December 2014, 3,200 of SQM’s employees in PRODUCTIVITY Chile, or 69.4% of our Chilean workforce, were In 2014, our Company took on the challenge covered by a collective bargaining agreement. of adopting a new way of working based on the LEAN methodology. The objective of this These agreements do not explicitly address methodology, known internally as “M1”, is safety-related matters since SQM considers to increase efficiency by implementing good them to be a right of its workers and an organizational practices, setting standards obligation and duty that the Company must and reducing losses from all types of waste fulfill at all times. Regarding healthcare, 100% and process variations. This work system of the Company’s employees receive health ensures that processes are under control in a benefits. system of continuous improvement that gets to the root of the problem and leverages any The Company has a general policy of meeting opportunities identified. It is based on aligning periodically with unions to explain the Throughout the process, the members of people behind common goals, encouraging origin and expected effect of any operating each work team have shown considerable participation and making process indicators changes that may affect workers and their commitment and dedication in their diverse visible. It also contributes to the workplace compensation. Notice is usually given two day-to-day activities. The results thus far have climate by fostering a culture of participation. months in advance of any significant change, exceeded initial expectations, which gives however the exact timing will depend on the the Company great confidence in its ability to Implementation of M1 began with a pilot degree to which that change may affect them. address future challenges. program at the Coya Sur atmospheric plant (in María Elena) in November 2013. Outcomes RELATIONSHIP WITH OUR were optimal, resulting in record production figures—the highest in the last 20 years—for the EMPLOYEES G4-LA 4/ G4-11 /G4-LA8 SQM strives to maintain potassium nitrate area in 2014. /G4-RH3 /G4-RH4 At SQM, we are concerned with maintaining and foster fluid relations During 2014, this system was replicated in the and fostering fluid relations and a sense of and a sense of collaboration MOP H II and SOP H plants and maintenance collaboration with the Company’s 25 unions, facilities in the Salar de Atacama and the NPT which represent 69.4% of all employees, with its 25 unions, which III plant in Coya Sur. primarily at the Company’s main production centers: María Elena, Coya Sur, Pedro de represent 3,200 employees, In 2015, implementation will continue at the Valdivia, Salar de Atacama, Salar del Carmen, or 69.4% of all personnel. MOP G III and MOP H I plants in the Salar de Nueva Victoria, Tocopilla, Antofagasta and Atacama, the NPT1 and NPT2 plants and solar Santiago. The Company also protects evaporation ponds in Coya Sur, the maritime and ground operations areas at the Port of The Company also protects and promotes and promotes its workers’ Tocopilla and the Contracting Department in its workers’ freedom of association and freedom of association María Elena. encourages non-discriminatory policies. As of and encourages non- discriminatory policies. 50 / 51

BENEFITS G4 -EC 3 / G4-LA2 ›› Scholarships for children of employees WORK SITE LIVING STANDARDS The Company provides a variety of benefits to who demonstrate academic excellence at AND COMFORT G4-EN31 employees with open-term contracts. Some the university level. Continuously improving our employees’ living of these benefits are legal obligations while › standards during time spent at our offices and others are given at the company’s initiative or › University and graduate-level scholarships accommodation facilities is a priority for SQM. are optional for employees. for outstanding employees. › In this spirit, the Company made significant ›› National holiday and Christmas bonuses. › Agreement with Principal Financial improvements at our facilities throughout 2014, Group for Group Voluntary Retirement including: ›› Special bonuses: education, funeral Savings where SQM matches employee assistance, marriage and birth. contributions. As of December 2014, 546 › Construction of a second artificial turf employees take advantage of this benefit. › › field for general employees in María Elena. › Special leave: death, marriage, moving and › to perform mammograms and prostate › Each year, the Company adjusts salaries ›› New sewage treatment plants in Iris. exams. based on a comparative compensation study of companies from the mining and ›› Renovations at accommodation facilities: ›› Life insurance for each employee that other industries. This enables us to set fair Andino, Iris, Pampinos and Guggenheim. covers natural or accidental death and and transparent pay scales for our non- disability. union employees (supervisors). ›› Construction of recreational facility and gymnasium for women at the Salar de ›› Supplementary health insurance. Atacama. › › Pension funds. ›› Major street repairs in María Elena. › › Catastrophic health insurance. ›› Improvements to green areas at entire Salar de Atacama camp. ›› Dental insurance. ›› The Company also continued work on ›› Termination benefits in case of employee improvements to residential facilities for resignation, with varying benefits based workers in María Elena and Tocopilla, as on position. well as the sewage system in Villa Prat. Our People

Employees at our Coya Sur production facilities. 52 / 53

PROFESSIONAL DEVELOPMENT G4-LA10 EDUCATION IS CRUCIAL TO PERSONAL DEVELOPMENT AND HELPS PEOPLE ACCESS NEW CHALLENGES AND ACHIEVE THEIR GOALS AND DREAMS.

A few of our scholarship recipients in 2014. Delia Godoy, Claudia Rivera, Juan Pablo Rojas, María Elena Rosas, Rusmeri Rosas, Lasies Cortés, Marlin Olivares and Janete Espinosa.

QM is constantly concerned opportunities and providing an attractive with supporting its employees’ internal mobility program. professional development and Spersonal growth while also contributing to The Company also offers other special benefits the wellbeing of their families. This includes such as scholarships for children of employees. offering them technical and educational Our People

SCHOLARSHIPS SCHOLARSHIP RECIPIENTS (2012-2014) SQM offers employees and their children the chance to reach their educational goals by 2012 2013 2014 providing financial assistance including: University and graduate-level 33 28 31 scholarships for SQM employ- › University and graduate-level › ees* scholarships: 31 employees received scholarships in 2014. Academic excellence scholar- 40 60 60 ships for children of employees ›› Scholarships for children of employees: In 2014, 60 outstanding students received *This includes scholarships for all employee categories and scholarships provided as part of tuition arrangements with educational institutions. In scholarships, the same the number of prior years, this figure did not include scholarships for executives and those provided as part of tuition arrangements with educational institutions. recipients as in 2013.

INTERNAL MOBILITY PROGRAM Developing people is at the core of our ›› Retains and rewards the best talent. organization. By identifying new talents and providing opportunities based on the individual ›› Reinforces commitment and motivation. competencies, skills and commitment of each of our associates, we can help enhance their ›› Favors opportunities for personal future professional prospects. In this spirit, development. we have been working on an internal mobility program for the past four years. This initiative ›› Increases employability by providing gives general employees and supervisors access learning opportunities within the to new positions within the organization by organization. first identifying ideal candidates from within our teams to fill any vacancies as they arise. ›› Enriches the Company through collaboration among areas. In 2014, 177 positions were filled with internal hires. This program helps benefit the ›› Strengthens the idea that people are organization’s culture because it: valuable assets for the Company. 91 › SCHOLARSHIPS › Encourages good performance and WERE AWARDED meritocracy. IN 2014. 54 / 55

WORKPLACE TRAINING G4-LA11 / G4-LA12 ›› SQM trained 4,085 employees in Chile in an investment of ThUS$959.1 (ThUS$1,099.4 Managerial and Technical Skills, Language 2014. in 2013). and Office Automation. The training was directed at workers, supervisors and ›› The 76,723 hours of training given involved ›› Our training program centered on the core executives. concepts of Induction, Risk Prevention, AVERAGE HOURS OF TRAINING PER EMPLOYEE BY GENDER AND EMPLOYEE CATEGORY IN CHILE (2012 - 2014) G4-LA9

Employee Category Total Training Hours, All No. of Employees 2012 Indicator Employees, 2012

Operator 32,802 1,710 19.2

Administrative staff 4,090 254 16.1

Executives 1,422 111 12.8

Professionals 38,947 1,415 27.5

Technicians 37,737 2,108 17.9

114,998 5,598 20.5

Employee Category Total Training Hours, All No. of Employees 2013 Indicator Employees, 2013

Operator 17,802 1,455 12.2

Administrative staff 3,021 210 14.4

Executives 1,176 97 12.1

Professionals 25,865 1,205 21.5

Technicians 31,953 1,851 17.3

79,817 4,818 16.6

Employee Category Total Training Hours, All No. of Employees 2014 Indicator Employees, 2014

Operator 30,182 1,844 16.4

Administrative staff 1,303 177 7.4

Executives 1,263 110 11.5

Professionals 20,734 1,263 16.4

Technicians 23,241 1,359 17.1

76,723 4,753 16.1 Our People

AVERAGE TRAINING HOURS PER FEMALE EMPLOYEE

Employee Category Total Training Hours, Female No. of Female Employees 2012 Indicator Employees, 2012

Operator 856 33 25.9

Administrative staff 2,019 146 13.8

Executives 291 24 12.1

Professionals 10,074 345 29.2

Technicians 3,672 216 17.0

16,912 764 22.1

Employee Category Total Training Hours, Female No. of Female Employees 2013 Indicator Employees, 2013

Operator 375 28 13.4

Administrative staff 1,824 135 13.5

Executives 261 22 11.9

Professionals 6,366 314 20.3

Technicians 2,732 193 14.2

11,558 692 16.7

Employee Category Total Training Hours, Female No. of Female Employees 2014 Indicator Employees, 2014

Operator 468 20 23.4

Administrative staff 588 105 5.6

Executives 191 17 11.2

Professionals 3,742 321 11.7

Technicians 920 200 4.6

5,909 663 8.9 56 / 57

AVERAGE TRAINING HOURS PER MALE EMPLOYEE

Employee Category Total Training Hours, Male No. of Employees 2012 Indicator Employees, 2012

Operator 31,946 1,677 19.0

Administrative staff 2,071 108 19.2

Executives 1,131 87 13.0

Professionals 28,873 1,070 27.0

Technicians 34,065 1,892 18.0

98,086 4,834 20.3

Employee Category Total Training Hours, Male No. of Male Employees 2013 Indicator Employees, 2013

Operator 17,427 1,427 12.2

Administrative staff 1,197 75 16.0

Executives 915 75 12.2

Professionals 19,499 891 21.9

Technicians 29,221 1,658 17.6

68,259 4,126 16.5

Employee Category Total Training Hours, Male No. of Male Employees 2014 Indicator Employees, 2014

Operator 29,714 1,824 16.3

Administrative staff 715 72 9.9

Executives 1,072 93 11.5

Professionals 16,992 942 18.0

Technicians 22,321 1,159 19.3

70,814 4,090 17.3

These tables do not include training data for personnel of Ajay Chile S.A., which is part of the SQM group and had 47 employees as of December 31, 2014. This entity is, however, included in the number of total employees as of that date. Our People

Folk group “Los Terralitos” of Tocopilla, recipients of “Lend a Hand to Your Community” grants.

“LEND A HAND TO YOUR COMMUNITY” GRANTS SQM’s grant program, “Lend a Hand to Your proposals that are submitted by the Company’s In 2014, 43 projects were submitted—19 more Community”, provides resources to social employees. The program has been in operation than in 2013—and nine were awarded grants. and economic development programs in for over 13 years. During this time, 78 projects neighboring communities based on grant have received grants.

WINNING PROJECTS 2014

Project Beneficiary Organization Town

Infrastructure improvements Club Deportivo Almirante Latorre de Peine Peine

Tobas: Dance as part of our traditions Baile Religioso Tobas Peine Nisaya Panicota Peine

Improvements to gym facilities Club Deportivo Luchas Formativas (Junta de Vecinos Población Corvallis) Antofagasta

Improvements to facilities at República de los EEUU School Centro General de Padres y Apoderados Escuela República EEUU Tocopilla

Conservation of folk heritage "Amigos de la Cueca" Grupo Folclórico "Amigos de la Cueca" María Elena

Improvements to educational facilities at Oasis en el Desierto Escuela Oasis en el Desierto de Pintados Colonia Pintados School in Pintados

Creative sewing skills Agrupación Social, Recreativa, Deportiva y Cultural "Mujeres Creativas Tocopilla" Tocopilla

Educating about the Pampa culture on local radio Radio Emisora Nueva Coya FM María Elena

Traditional dress: Reviving our local, regional and national Agrupación Cultural y Folclórica "Los Terralitos" Tocopilla identity 58 / 59

PERFORMANCE EVALUATION AVERAGE NUMBER OF EMPLOYEES BY CATEGORY AND GENDER PROGRAM G4-LA 11 Employee Category Number of employ- % of employees Every year, the Company evaluates its ees evaluated evaluated employees’ performances in their diverse functions. Men 88 91% Executives Women 17 100% In 2014, average scores by employee category and gender are detailed as follows: Men 868 76% Supervisor Women 275 75%

Men 2,980 83% General Women 262 79%

RECOGNIZING YEARS OF RECOGNIZING YEARS OF SERVICE SERVICE In appreciation for their years of service, each Years of Service Total Employees Men Women year SQM recognizes employees that have been 10 years 78 66 12 with the Company for ten-year increments. In 2014, SQM honored 141 individuals, one of 20 years 11 10 1 which has been with the Company for 50 years, 30 years 38 37 1 for their commitment and dedication. 40 years 13 11 2

In addition to recognition for years of service, 50 years 1 1 0 the Company gives several awards throughout the year to its employees to acknowledge and reward their commitment to the SQM values, especially Safety, Teamwork, Excellence and Innovation.

93.5% 79.1% 141 OF EMPLOYEES INCREASE IN EMPLOYEES received performance PARTICIPATION were recognized for evaluations in “Lend a Hand to Your their years of service Community” program (prior page) Our People

Víctor Pizarro Zuleta, a geological surveyor in the Mining, Evaporation Pond and Service Production Department, performing his duties in the Salar de Atacama. 60 / 61

WORKPLACE SAFETY MOTIVATED BY THE CONVICTION THAT NOTHING IS MORE VALUABLE THAN LIFE, PEOPLE ARE AT THE HEART OF WHAT WE DO AND SAFETY IS OUR CORE CORPORATE VALUE.

Use of personal protective equipment is mandatory at all SQM operating facilities.

afety is a key concern for SQM. Thus, The Company takes its responsibility for We promote above all else a culture focused we are committed to maintaining protecting its employees’ lives very seriously. on preventing risk, which is why we encourage systems that enable us to limit As a result, all work is performed under a actions that incorporate safety into our daily Shealth and safety risks for our employees and comprehensive risk control system. operations. contractors. We also aim to integrate this safety culture into our workers’ families. Our People

OPERATIONAL RISK ›› Occupational hygiene and health. In 2014, we worked alongside the association MANAGEMENT SYSTEM (SISGRO) › to complete 100% of the planned quality and G4-LA7 › Emergency plans. quantity assessments for silicon dioxide as part of the “National Silicosis Eradication Plan” In order to reinforce a culture of safety, we › Training. (PLANESI) and for industrial noise in accordance work continuously and rigorously to apply › with the “Protocol for Occupational Exposure the Operational Risk Management System › Order and cleanliness. to Noise” (PREXOR), in our operations in Nueva (SISGRO), which involves a series of activities › Victoria, the Salar de Atacama and Pedro de that employees must perform each day. ›› Audits. Valdivia—the mining area for the María Elena site. These assessments did not identify any The goal is to control the causes of accidents At SQM, we strive to encourage safe work areas with silicon dioxide exposure at our and professional illnesses in order to through personalized programs on Supervision, operations in the Salar de Atacama. comply with current laws and improve risk Periodic Reviews of Critical Inventory, Work management. Procedures, Observation and Inspection of We also implemented a surveillance program Activities and Visible Leadership. for employees exposed to silicon dioxide in The system covers 13 concepts to ensure that Pedro de Valdivia and Nueva Victoria, and to the safety elements we need are in place: We are committed to ensuring full compliance noise at the Pedro de Valdivia, Nueva Victoria with our 13 Basic Safety Rules (BSR), which and Salar de Atacama operations. These efforts › Leadership. › are designed to prevent potentially dangerous resulted in a list of exposed workers (INE in situations. These rules must also be followed Spanish) at each site. › Behavior-based prevention. › by our contractors. The Company began to conduct quality › Joint committees. › Since 2012, SQM has been a member of the assessments for industrial noise in the Salar Chilean Safety Association (ACHS), which del Carmen and continued to perform quality › Reporting and investigating incidents. › provides medical attention in the event of and quantity assessments of protocols for accidents and advises member companies on musculoskeletal disorders (MSD) and manual › On-site activities. › safety matters, working to ensure ongoing handling of loads (MHL) at all production sites, compliance with health and safety standards in line with current regulatory protocols, to › Compliance. › in our organization. determine whether any employees are exposed to these agents. ›› Contractor oversight. ›› Personal protective equipment. 62 / 63

COMMITTEES AND COMMISSIONS Joint Committees on Hygiene and Safety and Food Commissions G4-LA5 Safety G4-LA6 SQM facilities are periodically inspected by SQM, its employees and the unions that Our goal is to achieve zero workplace the Safety and Food Commissions, which are represent them share this concern for safety accidents, which is why we have made an comprised of worker representatives and and interest in the quality of life at camp effort to strengthen and support the work members of management. The focus areas of accommodation facilities. In this spirit, they of the 15 Joint Committees on Hygiene and the commissions are workplace safety and food work together to reach agreements and make Safety that represent 100% of SQM workers in service quality. The work of these commissions improvements. This bond has resulted in the Nueva Victoria, María Elena, Tocopilla, Salar is supported by the Company in order to creation of and participation in risk prevention de Atacama, Salar del Carmen, Antofagasta, identify opportunities for improvement. committees and commissions, which contribute Iquique and Santiago. to attaining the goal of zero accidents. Thanks to visits by these commissions, These committees are models on safety agreements have been reached between Company-employee participation mechanisms matters and play an important role in management and workers that help our include: promoting best practices for workplace safety personnel perform their job in a clean, safe and among all workers. They also offer educational comfortable environment. ›› Safety, Food, Health and Camp Facility activities for employees and their families Commissions. regarding risk prevention matters such as drug In October, for the third straight year, a survey prevention, first aid and fire extinguisher use, was conducted to measure our organization’s ›› Joint Committees on Hygiene and Safety. thus encouraging safe practices across the “Safety Culture”. This initiative was completed entire organization. in conjunction with the Chilean Safety ›› Worker representation in accident Association (ACHS) and Behavioral Science inspections and investigations. Technology (BST), a world leader in behavior- based safety. All supervisors, general workers ›› Identification of situations in violation of and contractor employees were surveyed. This standards. initiative enables SQM to continue to improve its safety and occupational health policies and ›› Coordination with risk prevention strategies, thus moving forward towards its departments at each site. zero accident goal. Our People

The main objective of joint committees on hygiene and safety is to create prevention and control programs to minimize the risks of accidents and professional illnesses and encourage and promote prevention, safe conduct and a risk-focused culture.

HEALTH AND SAFETY The Company obtained a Frequency Index (FI) INDICATORS G4-LA6 /G4-LA9 of 0.32 for 2014 (base 200,000 working hours), In 2014, our accident rates dropped 7.7% which includes company staff and contractors. as compared to 2013, which reinforces our This encourages us to stay alert and increase commitment to our goal of zero accidents. efforts to train and educate our employees on workplace safety. We have continued to In terms of permanent disabilities, one worker develop a risk prevention training program designed to provide tools to both company 0.32 was diagnosed with the professional illness silicosis in 2014. staff and contractors so they can make a FREQUENCY INDEX commitment to safety. FOR SQM AND CONTRACTOR EMPLOYEES 64 / 65

ACCIDENT RATES FOR LAST 3 YEARS

SQM Employees Contractors Total

FI SI FI SI FI SI

2014 0.51 27 0.12 7 0.32 18

2013 0.4 25 0.32 10 0.35 17

2012 0.52 77 0.36 26 0.43 48 Evolution of Frequency Index Base = 200,000 working hours. Evolution of frequency index base = 1,000,000 working hours.

EVOLUTION OF FREQUENCY EVOLUTION OF FREQUENCY INDEX BASE = 200,000 WORKING INDEX BASE = 1,000,000 HOURS WORKING HOURS

0.43 2.1

0.35 1.8

0.32 1.6 2012 2013 2014 2012 2013 2014 Our People

33,000 7.7% Zero TRAINING DECREASE IN ACCIDENTS IS OUR HOURS ACCIDENT RATES UNWAIVERABLE in risk prevention over 2013 GOAL

In 2014, the Company logged 33,006 training Response Team Conference”, where the For 2014, the Company hours on risk prevention matters for SQM Salar de Atacama team, in representation of employees and 66,635 training hours for the Company, demonstrated techniques for reported an FI of 0.32 and an contractors. Overall, 3,792 SQM employees and rescuing an individual in a high, confined space. SI of 18, thanks to 9,115 contractors participated in these training sessions. Our goal as a Company is to prevent accidents, efforts to build a involving each of our employees in the mission For 2014 and prior periods, we did not track the of reporting incidents that occur during daily preventative culture gender of contractor employees participating operations. In 2014, we continued to work on throughout the entire in safety training. However, as a sign of our the program “Reporting Allows Improvement”, commitment to disclose this index, the gender through which our workers observe and report organization. of external workers trained will begin to be actions that could trigger an accident. This recorded in 2015. initiative allows us to identify opportunities for improvement and implement corrective SQM is committed to both good work and measures before accidents occur. safe work, which is why this prevention policy applies to all personnel and contractors. The Company gathers information regarding entry protocols for contractors and performs audits.

Also during 2014, the Company carried out several different activities at our operating sites aimed at strengthening our prevention tools, including seminars for supervisors and contractors. In November 2014, SQM also organized the “9th Rescue and Emergency 66 / 67

OUR

VALUE CHAIN G4-LA14 CONTRACTOR EMPLOYEES ARE STRATEGIC PARTNERS THAT ARE VITAL TO THE SUCCESS OF OUR COMPANY. THIS IS WHY WE SEEK OUT THE BEST CONTRACTORS IN ORDER TO ACHIEVE EXCELLENT RESULTS.

art of SQM’s workforce consists of SQM periodically engages in oversight In order to emphasize the contractors who work at our Tarapacá activities in order to verify compliance with and Antofagasta region locations labor and social security requirements. importance of protecting Pand our offices in Iquique, Antofagasta and the lives and health of all Santiago. During 2014, an average of 4,786 The following variables are also controlled: contractors worked at our operational facilities health and safety, basic sanitary and individuals, the Company and on projects in Chile. environmental conditions in the workplace, the health and safety management system, provided new contractors Our commitment to doing a good and safe and the existence and functioning of joint with a copy of our Contractor job extends to our contractors, and they are committees and compliance with labor laws. required to meet the same standards as our and Subcontractor employees, particularly in the areas of safety, Regulations and conducted labor rights and ethical behavior. 66,635 hours of prevention and safety-related training in 2014. Our People

Contractors participate actively in SQM’s production and value chain. Pictured here are SQM and contractor employees at a laboratory in Antofagasta.

PRESERVING OUR VALUES G4- In 2014, contractors participated in 66,635 LA15 training hours focused specifically on safety When contractors start working at SQM, matters as part of the Company’s efforts to 4,786 they receive a copy of our Contractor and contribute to risk prevention and align workers with our Sustainable Development Policy and CONTRACTORS Subcontractor Regulations, which inform work at SQM other SQM standards. them of the Company’s standards, including on average each year. obligations and responsibilities regarding the protection of the life and health of all workers. 68 / 69

PARTNER COMPANY EXPENSES Suppliers are key to the development of Because promoting local IN 2014 our products, which is why responsible management from the first link in our development is important ›› SQM engaged over 2,764 goods and service production chain is so important. to SQM, 27% of goods and providers in Chile and abroad. Near our major operations, the Company seeks services contracted by the ›› Of these, 742 come from the Tarapacá and to promote and strengthen the development Company came from local Antofagasta regions where the Company’s of local businesses. In 2014, 27% of goods and operations are located. services contracted by the Company were suppliers. Of the Company’s provided by local suppliers. 2,700 suppliers of goods and ›› SQM disbursed US$560 million to 1,652 service providers. SQM’s purchasing strategy takes safety and services, 742 are from the labor regulation elements into account in ›› The Company purchased US$251.3 million the process of selecting suppliers. Essential Tarapacá and Antofagasta worth of goods from 1,112 suppliers. requirements include: membership in a safety association (mutual in Spanish), accident rate regions. ›› 85.6% of the service providers are certificates, authorization to subcontract, located in the Metropolitan, Tarapacá health examinations, compliance with labor and Antofagasta regions, while 81.2% of laws and employment contracts, personnel the goods suppliers are located in these skills, equipment certifications, among others. regions. The Company also actively participates in efforts to help develop local suppliers such as “Más Proveedores Tarapacá” and “Cluster”, two regional initiatives where SQM’s involvement has been exemplary. Our People

All participants at the official closing cere- mony for the supplier development program for the Tarapacá region in 2014.

MÁS PROVEEDORES TARAPACÁ

For three years, the Company has taken part secure contracts with mining companies, thus The region’s most important mining companies in the regional program “Más Proveedores helping to meet the industry’s supply needs. participate in the program, which is managed by Tarapacá”, which seeks to develop local mining Over the program’s three years, SQM has met the Iquique Industrial Association (Asociación industry suppliers. The program’s objective is with 17 participating suppliers. de Industriales de Iquique, AII). to develop the skills and know-how of suppliers so that they can submit bids for tenders or 70 / 71

OUR COMMITMENTS

Topic Commitments 2014 Compliance Commitments 2015 Highlights 2014 Our Implement programs to Implement recognition program We published the results of the Climate Survey in an internal People improve work environment,  and broaden leadership newsletter. We began conducting leadership workshops. We emphasizing the development workshops to cover 80% of initiated the M1 recognition pilot program (LEAN system). of leadership skills and supervisors. recognition of supervisors. Communicate survey results and steps for improvement.

Continue SQM training Continue SQM training program We performed a survey to identify needs and developed program, improving efforts to  based on results of survey to the 2014 Training Program based on these needs across the identify needs. identify needs. entire organization.

Implement “M1” (LEAN system) training program and first stage of updated legal certification training.

Maintain number of Grant higher education We granted 91 scholarships to employees and their children. scholarships given to  scholarships to employees and employees and their children. their children.

Continue to fund Micro- Continue to fund Micro- In 2014, we continued the Micro-entrepreneurial Funding entrepreneurial Funding  entrepreneurial Funding Competition for employees, which provided assistance to Competition for employees Competition for employees eight initiatives in the towns of Peine, Antofagasta, María to strengthen bonds with to strengthen bonds with Elena, Tocopilla and Pintados. neighboring communities. neighboring communities.

Safety and Continue making progress Continue making progress Our goal continues to be to reach zero accidents. During Health towards “zero accident” goal towards “zero accident” goal in 2014, we decreased our frequency index by 7.7% with respect in operations and attaining operations and attaining better to the prior year but still did not achieve our goal. better results than the prior results than the prior year. year. Maintain and improve the Maintain the Operational Risk We achieved 93.1% compliance for the Operational Risk Operational Risk Management Management System (SISGRO), Management System (SISGRO), but did not reach our goal of System (SISGRO), obtaining obtaining over 95% compliance exceeding 95%. over 95% in ACHS evaluation. in regulatory aspects.

 Fulfilled

Partially Fulfilled

 Not Fulfilled Our People

Topic Commitments 2014 Compliance Commitments 2015 Highlights 2014 Continue to improve reporting Safety and Continue to improve We increased reporting of incidents by 25% in 2014 with of incidents, encouraging the Health reporting of incidents and  respect to the prior year. Incident Reports 2013=5,519; use of this tool through our implementation of corrective Incident Reports 2014=7,370. intranet and safety newsletters. measures. Implement "Accidentgrams" to inform workers when incidents occur, including lessons learned and the main control solutions put into place.

Define and implement improvement opportunities based on the results of the Safety Culture Survey to strengthen communication, leadership and conduct-based prevention.

Continue timely follow-up of Continue timely follow-up of We had 100% compliance in all 149 of the audits conducted. risk prevention audits.  risk prevention audits.

Companies Maintain oversight of Continue oversight of "We met targets for contractor oversight through audits, Contractors contractors through safety  contractors through semi- completing: Qualification Audits: 60 audits of 60 companies. audits, strengthening follow- annual audits of each contractor, Hygiene Audits (DS 594): 50 audits of 45 companies. up of action plans presented strengthening follow-up of by them, with a special focus action plans presented by them on deviations in compliance for deviations in compliance with SQM standards. with SQM standards.

Continue to promote safe Continue to promote safe Continue to promote safe conduct through the Conduct conduct in the implementation  conduct in the implementation Observation Program at our operating facilities. of their activities through the of their activities through Conduct Observation Program. the Conduct Observation Program. As part of the ACHS Conduct Observation Program, strengthen execution in existing areas and add new areas.

Maintain fluid and direct Maintain fluid and direct Continue to hold monthly and bi-monthly meetings with communication with them in  communication with them in contractors. We added contractors to the Safety Culture order to ensure that their work order to ensure that their work Survey, which was conducted between October and is aligned with SQM's health is aligned with SQM's health December 2014. and safety objectives. and safety objectives.

Continue efforts to ensure Continue efforts to ensure We reviewed our contractors’ labor documentation each contractor compliance with  contractor compliance with month through an external provider “SERCOL Certifica”. labor laws. Continue to labor laws and strengthen strengthen relationships and relationships and interaction interaction with contractors. with contractors. 72 / 73

3|Our Neighbors TOGETHER, WE CREATE A BETTER COMMUNITY Our Neighbors

Ties to the community are an integral part of busi- ness at SQM. We strive for our presence to make a significant contribution to the social, cultural and educational development of those we live and share with each day. 74 / 75

OUR

NEIGHBORS G4-SO1

Children from a school (Escuela E-21) in Toconao participating in an educational activi- ty to learn how to care for the environment.

or SQM, building and maintaining good neighbor relations with the towns surrounding our operations is Historical Education Social Fvery important. In this spirit, we have developed an outreach plan organized around three main Heritage and Culture Development themes: A neighboring communities. the impactsthatouroperations have on public consultationprocessestomeasure requirements, the Company has conducted COMMUNITY WORKING GROUPS have builtbondsoftrustwithourneighbors. communities, aswellfortheCompany,and opportunities fortheinhabitantsofnearby these efforts have allowed for new and better define a work methodology. Over the long term, to initiative each from benefiting communities with theresidentsorrepresentativesof For eachtheme,theCompanyhascollaborated Farmers ofPintados" tural andCommercial Improvements forthe Public-private Coordinating Council "Agricul- Emergency Committee opment Board ofQuillagua Public-Private Production andSocialDevel - opment Board ofQuillagua Production, Agricultural and Tourism Devel- Emergency Committee Council ofCivilOrganizations Working Group in accordance withregulatory assessments forourprojectsand s partoftheenvironmental G4-SO1/G4-SO2 Pozo Almonte Elena Tocopilla and María María Elena María Elena San PedrodeAtacama San PedrodeAtacama Municipality Pintados andIquique. Grande, Tocopilla, Antofagasta, Pozo Almonte, Socaire, Peine,Talabre, Camar,Solor,Río Quillagua, SanPedrodeAtacama,Toconao, near SQM’scurrentfacilities: María Elena, responsibility initiativesinthefollowing towns The Companyengagesincorporate social conflicts oropportunitiesinatimelymanner. of theirdevelopment andhelpingtodetect it operates, supportingdifferentdimensions working groupsinthecommunitieswhere The Companyisalsoinvolved indifferent ANTOFAGASTA

PACIFIC TOCOPILLA OCEAN IQUIQUE AND ANTOFAGASTA REGIONS. OPERATIONS IN THETARAPACÁ COMMUNITIES NEARSQM industry. a town thatprovides servicestothemining as itself billed has office nitrates former This mining activities.MaríaElenaisoneexample. primarily in agriculture, tourism and port or operations aresmallcommunitiesengaged or regionalcapitals.Thetowns closetoour in the middle of the desert and far from cities Chile, intheTarapacá andAntofagastaregions, SQM’s production plantsarelocatedinnorthern RIO GRANDE SOLOR TOCONAO PEINE SOCAIRE POZO ALMONTE PINTADOS MARÍA ELENA QUILLAGUA SAN PEDRODEATACAMA TALABRE CAMAR Villages Cities Major Our Neighbors 76 / 77

HISTORICAL HERITAGE PRESERVING AND DISSEMINATING CULTURAL AND HISTORICAL HERITAGE IN ITS MANY FORMS ARE IMPORTANT CAUSES FOR SQM, HEIR TO THE UNPRECEDENTED DISCOVERY IN THE WORLD’S DRIEST DESERT: THE NITRATES INDUSTRY.

he Company believes that the In 2014, the Company continued to develop three people participated in the workshops, development of neighboring towns several initiatives to preserve both tangible which were held in Iquique and also in María must be based on an appreciation and intangible nitrate industry heritage. Elena beginning in 2014. Tfor their heritage and culture. Consequently, Highlights include its support of events this line of work holds special meaning for the organized by the Hijos del Salitre Foundation At the end of the workshop, participants made Company. SQM’s origins in the nitrates industry in the Tarapacá Region, including “Nitrates their traditional pilgrimage to nitrate office also drive its commitment to preserving and Week,” in November that included the launch cemeteries in November to remember their disseminating its legacy and heritage. of a book of poems entitled “De mi Pampa a deceased relatives. mis Amores”, by Waldo Sembler. SQM serves on the boards of the Nitrates Museum Foundation, the Chacabuco As part of its projects with the Nitrates Foundation, the Pedro de Valdivia Foundation Museum Foundation, for the third year in a row, and the Huanchaca Ruins Foundation. With a Juegos Multigrados was held at the former these organizations, SQM has put forth Santiago Humberstone nitrates office. The considerable effort to preserve the legacy event was designed to showcase traditional of the nitrate business in the Tarapacá and games such as run-run, kite flying, marbles 5 Antofagasta regions. and yincana, and create an opportunity for different generations to socialize. EDITIONS of “Cuentos de Its contributions to these institutions cover la Pampa” have been held a portion of their operating expenses and Also in 2014, a radio studio was inaugurated over the past 10 years. provide support for research, conservation in the administrative offices of the Nitrates and restoration projects such as operating the Museum Foundation in Iquique. The new Santiago Humberstone nitrates office, opening facility will be used to help preserve oral the former Chacabuco nitrates office for public stories about the pampa and to disseminate viewing and inaugurating the permanent them through the program “Iquique, la Pampa 83 exhibit “Industrial Life in the Nitrates Industry: y su Historia”, which is broadcasted from the Legacy of Culture and Development” in new studio through Iquique’s Radio Caribe. PARTICIPANTS 2014 in the Huanchaca Ruins Foundation’s created tin flower wreaths in Desert Museum. This exhibition relies on new In 2013, for the third consecutive year, the María Elena in 2014. museological principles to tell the story of the Company funded workshops to make tin flower land, the community and its heritage. wreaths to adorn grave sites as part of the pilgrimage to nitrate office cemeteries. Eighty- Our Neighbors

In 2014, the tin flower wreath workshop Winners of literary competition “Cuentos de was extended to the town of María Elena. la Pampa” 2014

As part of SQM’s ongoing efforts and for TRADITIONAL MUSIC IN LICKAN Organized by SQM in partnership with environmental studies required by law, the ANTAY the Nitrates Museum Foundation and the Company prepares thorough records of pre- Another initiative worth mentioning was a newspaper El Mercurio de Antofagasta, the Hispanic and historical remains found near recording made of artist and Toconao resident, winner is selected by a renowned jury chaired mining areas and implements preventative Margarita Chocobar, a relentless researcher of by Antofagasta’s acclaimed writer Hernan and mitigation measures to protect them, the customs of the Atacama culture, playing Rivera Letelier. especially near María Elena and Nueva Victoria. traditional music known as cueca, which is also the Chilean national dance. Her interest First place was awarded to Carlos Alberto Mella, As proof of SQM’s commitment to preserve and in the cultural expressions of her people was with his short story “Ladrones de Tumbas”; tell the story of the intangible heritage in the sparked by participating in local traditions as second to Alejandro Garotti Gasep for his stories and accounts of those that experienced a child. This eventually led to her composing entry “Ecos de la Pampa”; and third to Felipe the nitrates industry firsthand, the Company the music featured on the record “Cuecas a Mi Trigo Carvajal for “Eugenio Rieles.” Honorable provided support for a documentary entitled Tierra Lickan Antay”. mention was also given to Guillermo Araya “María Elena”, created in conjunction with the Espinoza (“Froilán Rojas”), Francisco Geraldo Procultura Foundation. The film, which was A compilation of two types of cuecas (criolla Gutierrez (“El Jinete Francés”) and Lucas Morán shown to large audiences in Antofagasta and and carnavalera), this traditional music from Basulto (“El Contrato”). María Elena, revives the history of María Elena Toconao enriches the national dance by through narrations from older residents in the introducing a new variation. These pieces are SUPPORT FOR THE BOOK town, which was one of the last operating a key element in the musical repertoire of the “QUILLAGUA, LUNA QUE nitrates offices in the world. carnivals celebrated in the towns of Alto El Loa ASOMBRA” and Atacama La Grande. RECOVERING HERITAGE In early 2014, SQM joined forces with the Nitrates Museum Foundation to publish the As part of the Company’s efforts to help CUENTOS DE LA PAMPA book “Quillagua, Luna que Asombra”, which recover heritage, it helped celebrate Heritage In 2014, the fifth version of the literary brings together hundreds of life testimonies, Day in María Elena and provided support for competition “Cuentos de la Pampa”, was past and present accounts of the town the San Miguel Arcángel festival in Quillagua, held. The contest aims to bring together expressed in photographs, documents and in homage of the town’s patron saint, honoring original short stories about the legends and personal tales of its inhabitants. him with traditional dances from the north of collective imagination of the nitrates industry Chile. and the pampa, adding value to the industry’s intangible historical heritage. 78 / 79

EDUCATION AND CULTURE WE ARE CONVINCED THAT EDUCATION IS VITAL TO THE DEVELOPMENT OF SOCIETY. THUS, WE REAFFIRM OUR COMMITMENT BY PROVIDING SUPPORT FOR A VARIETY OF EDUCATIONAL PROGRAMS.

t SQM, we believe in the value in San Pedro de Atacama, it was expanded RESHAPING MATH TEACHING of providing new and better to include the towns of María Elena and METHODS opportunities for growth and Pozo Almonte in 2014, thus benefitting SQM finances the mathematics assistance Adevelopment to children, young people and 4,709 students and 80 professors during program organized by Corporación Crea+, which adults, especially in the towns nearby our the year. has been implemented in the towns of San operations. › Pedro de Atacama, Pozo Almonte and María › Continuation of the agreement with Elena. Through this program, primary school In order to strengthen the talents and skills of the community of San Pedro de teachers (grades one through eight) receive these individuals, we support training courses Atacama to provide financial support support and training in designing lesson plans and programs in different areas based on the for psychopedagogical programs for along with in-class assistance and evaluations, needs and goals of the residents of each town. strengthening student learning processes which is highly valued by the educators being in public schools. introduced to the new techniques for learning COMMITMENT TO EDUCATION and understanding mathematics. Each year, the Company renews its ›› Implementation of workshops and commitment to education with the firm belief recreational activities at the Toconao In the most recently published results of Chilean that education plays an important role in the School, which is managed by nuns from national standardized tests (SIMCE), schools in country’s development as the main route to the Patmos Convent. These included silk the Tarapacá and Antofagasta regions where social wellbeing. flower workshops and sewing classes for Corporación Crea+ has implemented its math the residents of Toconao. assistance program, thanks to funding from Its work in this area has included: › SQM, reported significant progress in 2014. › SQM has maintained a close relationship The most significant score improvements were ›› Support for training and educational with the Oasis en el Desierto School in seen in San Pedro de Atacama, where the Solor program organized by Color Esperanza Pintados for the past eight years. The Primary School’s fourth graders earned an Foundation, which works with children Company has provided support to improve additional 39 points, equivalent to an increase with Down Syndrome in Antofagasta. its educational program, including the of 13%. Another high-performing school was It is implemented through the CpueD mathematics assistance program in the San Roque de Peine Primary School, which Foundation. conjunction with Corporación Crea+ for gained 28 points, or 9.4%, over its previous the past several years. score. In the Tarapacá region, fourth grade ›› Funding for the Crea+ Program. students at the Oasis en el Desierto School Implemented in 100% of the public schools progressed 25 points, or 10.3% over the prior scores. Our Neighbors

Implemented in 100% of the public schools in San Pedro de Atacama, in 2013, the Crea+ Program was expanded to include the towns of María Elena and Pozo Almonte, thus benefitting 4,709 students and 80 professors in 2014.

These results are the product of collaboration learning, these academic efforts have been SQM has an agreement with the between experts, teachers, students, principals complemented by reinforcement sessions as CpueD Foundation in Santiago to offer and municipal authorities that are confident in well as workshops to cultivate new artistic multidisciplinary services by highly qualified the work being done. skills. Students can also participate in courses professionals who are up to date in new on topics such as farming, traditional dance methodologies and therapies that will enable OASIS EN EL DESIERTO SCHOOL and music. the children to lead a fulfilling life not only IN PINTADOS in their school years but also as adults. The COLOR ESPERANZA FOUNDATION exchange is designed to implement the CpueD SQM’s relationship with the Oasis en el model at Color Esperanza, which includes Desierto School in Pintados began in 1998. Also, In 2014, SQM continued to collaborate with professional development and internship the school has been sponsored by the Company Fundación Color Esperanza, of Antofagasta, opportunities for Color Esperanza staff at and its employees since 2007. which serves 25 families with children who have Down Syndrome. The participants are CpueD along with training and counseling for families in Antofagasta. Support is also In 2014, the teaching staff continued using given tools for improving their development provided by Spain’s Universidad de Murcia. the mathematics assistance program, which and autonomy. This bond was strengthened has been very well received by the school thanks to the CpueD-Color Esperanza Exchange community and parent association. With Program supported by SQM. the Company’s support and a focus on 80 / 81

School Town Extracur- Math Psy- Student juegos Agricul- Sup- Merry ricular Program cho-ped- Transport multigra- tural port for Christmas Work- agogical dos Education Cultural for All shops Programs Initiatives

School E-21 Toconao

San Pedro de School E-26 Atacama

School G-30 Socaire

School G-29 Talabre

School G-27 Peine

School G-22 Camar

San Pedro de High School C-30 Atacama

Río Grande School Rio Grande

Oasis en el Desierto School Pintados

Quillagua Primary School Quillagua

Toconao, Preschools Talabre, Camar, Sociare, Peine

School G-15 in Solor Solor

Arturo Perez Canto School D-133 María Elena

Humanities and Science Professional Technical High María Elena School

Carlos Condell School D-7 Tocopilla

Sagrada Familia School Tocopilla Our Neighbors

Visitors to the Puquios de Llamara Trail in the Tarapacá Region can walk along the self- guided circuit to learn more about the surrounding ecosystem.

SUPPORTING HEALTHY ENVIRONMENTAL EDUCATION to get to know the Tamarugo tree and the LIFESTYLES As part of the Company’s commitment to environment in which it lives. In 2014, SQM supported several sports-related education and the environment, in 2013 SQM initiatives, including a large-scale program began organizing a series of initiatives to GENERATING KNOWLEDGE ON to organize a soccer league, financed by the showcase the area’s natural and historical RENEWABLE ENERGIES heritage, emphasizing care and preservation Company, in the city of Tocopilla in conjunction SQM participates actively in the Solar Race Fair, of the environment and giving the community with Fundación Fútbol Más. put on in Parque el Loa in the city of Calama tools to facilitate understanding and encourage in order to educate individuals on renewable conservation. These efforts were reinforced The foundation fosters the development of energies. At this fair, twenty students from in 2014 by strengthening the environmental resilience in young and adolescent boys and School E-21 in Toconao visited SQM’s stand, education program at the Center for girls that live in vulnerable biopsychosocial which featured the work of farmers from Environmental Education (CEDAM) at Pampa conditions. It gives them the opportunity to the town of Quillagua in their hydroponic del Tamarugal National Reserve, located in the strengthen an array of skills to benefit their greenhouses that use renewable energy to Tarapacá Region. The program’s objective is to own wellbeing and their community. operate systems. promote cultural change regarding practices, conducts and attitudes on conservation and the The foundation’s work is conducted through They also got to attend the well-known sustainable use of ecosystems in the Pampa neighborhood soccer leagues, which promote “Atacama Solar Race”, where 13 teams in two del Tamarugal National Reserve. This initiative respect, happiness, responsibility, teamwork categories (“Evolution” and “Hybrid”) raced is aligned with the environmental education and creativity, all values that motivated SQM to solar cars. This very important competition objectives developed by the National Forestry support this initiative and bring it to Tocopilla. brings together teams from all over the Corporation (CONAF) in the Tarapacá Region. world to foster innovation in solar power More than 250 boys, girls and adolescents from technologies. The race—supported by SQM The CEDAM has big-impact teaching resources Tocopilla demonstrated positive results from since its inception—follows a 1,400 kilometer such as an audiovisual room showing a the foundation’s work, which also cultivated circuit through the Atacama Desert. healthy lifestyles and took advantage of the video about the reserve, the pampa and four multisport fields located in the heart of the surrounding environment. This film is Tocopilla. supplemented by a touch screen and scaled recreations of local flora and fauna. +250 Visitors to the center can complement their experience by touring a self-guided trail CHILDREN AND ADOLESCENTS Participated in the “Futból Más” program in Tocopilla. 82 / 83

STUDENTS BUILD SMALL SOLAR TOCOPILLA STUDENTS BRING SQM and the NGO “La CARS IN TOCONAO LIFE TO GREEN AREAS Ruta Solar” organized an As a way to educate children on the importance In response to a request from the ecological of solar power in Chile, SQM and the NGO “La committee for the Tocopilla school district, and entertaining solar toy car Ruta Solar” organized an entertaining solar in partnership with a team of professionals toy car workshop in Toconao. The event’s from Servicio País, in 2014 SQM provided tools workshop in Toconao. The objective was to introduce students from the and supplies such as potting soil to improve the event was designed to town’s School E-21 to the world of sustainable grounds around the city’s school, especially the innovation. Participants built small cars with entry area. Students and teachers participated introduce students from photovoltaic panels and learned about the side by side in the activity. the town’s School E-21 to benefits of solar power. A group of experts also gave a talk on solar power and its applications One of the focuses of Servicio País is to revive the world of sustainable in automobiles. public spaces near schools and neighborhoods in order to improve the quality of life of innovation. Participants built Seventy boys and girls participated in the residents. small cars with photovoltaic activity, which began with the expert-led talks, followed by the construction of their own panels and learned about the “solar toy car”. benefits of solar power. The event culminated in an amusing race in the school’s courtyard to see which car was the fastest. Our Neighbors

The children of Toconao participated actively in an exciting solar car workshop orga- nized by SQM and the NGO La Ruta Solar, to disseminate and educate them on the importance of solar power in Chile. 84 / 85

SOCIAL DEVELOPMENT FUNDING COMPETITION AIM TO FOSTER PROJECTS THAT ARE SUSTAINABLE OVER TIME

Manuel Tejerina is one of the 19 farmers that benefitted from the Tierra Fértil Program. He grows grapes to produce the wine Ayllu. Production totaled 5,000 bottles in 2014.

n 2014, SQM held a new version of its micro- sustainable over time. To date, these funds over time. The majority of these initiatives entrepreneurial funding competition in have provided support for 91 entrepreneurs in provide services that previously did not exist partnership with the municipalities of María diverse industries such as crafts, tourism and in these towns. IElena, San Pedro de Atacama and Corporación production development, among others. Incuba2. This competition is designed to Interest in this initiative has grown every year. strengthen business initiatives submitted by In 2014, 18 micro-entrepreneurs were awarded In the town of San Pedro de Atacama, the inhabitants of these communities in order to grants to start or improve their businesses eighth version of the competition attracted foster the development of projects that are with profitable projects that are sustainable applications for 74 projects, ten of which were Our Neighbors

selected from the towns of Toconao, Camar, the areas of crafts, production development, Talabre, Peine, Socaire and Ayllu de Coyo. tourism and heritage, as mandated by the competition rules. Eight of these projects were At the fourth edition of the contest in María awarded funds. Elena and Quillagua, the evaluating committee had to choose from 34 projects restricted to

SAN PEDRO DE ATACAMA

Name Project Town

Jorge Alvarez and Comunidad Atacameña de Implementing and strengthening Aldea de Tulor and Tebenquinche Ayllu de Coyo Coyo

Cecilia Inés Cruz Cruz Recovering our ancestral culture Socaire

Laurencia Rosalia Soza Mamani Drying medicinal herbs and dehydrating fruit Talabre

Elisa Mariana Soza Tejerina Purchasing and installing solar water heater at Hostal Huaytiquina Talabre

Alejandra Espíndola Corante Advertising lodging and agrotourism initiatives Toconao

Libia Patricia Mondaca Mondaca Implementing traditional craft workshop (phase 1) Toconao

Deice América Cruz Cruz Reviving and selling local crafts Peine

Santos Renato Cruz Pachao Welding for Atacama peoples Camar

Pablo Roberto Cruz Barreda Producing and selling goat cheese Peine

Sara Miguelina Morales Torres Building greenhouse with family irrigation system to farm long shelf-life Peine tomatoes and other produce

MARÍA ELENA

Name Project Town

María Inés Palape Suárez Equipping showroom to sell traditional cookies (Alfajores Calatambo) Quillagua

Gloria Raquel Palape Suárez New utensils for Restaurant Don Benja Quillagua

Héctor Antonio Cortés Ocayo Pizzeria with delivery service María Elena

Roxana Tabalí Contreras Renewing implements for Rico Mote con Huesillo "La Chana" María Elena

María Peña Escobar Pet grooming salon "Olguita" María Elena

Héctor Vitalicio Hoyos Rosas Installing a tire repair center Quillagua

Cecilia del Carmen Varas Solar Improving my bakery María Elena

Claudia Fabiola Martin Barcos Renting kiddie cars (3-12 years) María Elena 86 / 87

TIERRA FÉRTIL PRODUCTION As part of efforts to strengthen product sales, Atacama Tierra Fértil Program – San DEVELOPMENT PROGRAMS the program is making strides to incorporate Pedro de Atacama G4-15 bar codes and design packaging for sales in SQM has supported and implemented In 2014, progress was made to consolidate a supermarkets throughout the region. This helps production development initiatives in the joint project in partnership with the Foundation consolidate prior efforts to reinforce farming towns of Quillagua and Salar de Atacama in for Agricultural Innovation (FIA) to grow alfalfa practices, improving methods and developing the Antofagasta Region and Pintados in the in the desert. The town of Talabre and the the production and business management Tarapacá Region. Company worked together on this initiative, skills of local residents. which calls for ongoing technology transfer Quillagua Production Development from professionals and specialists in order Also in 2014, the Company worked with the to enhance the learning process. During the Program community on an energy efficiency project for period, investments were made in forage The Production Development Program the greenhouse, which also received resources harvest machinery such as a cutter, a raker developed in the town of Quillagua is a from the Chilean government’s bureau for and a baler, as well as storage facilities, which joint effort between the community and the indigenous affairs (Conadi Calama) to be are used by the 16 farmers participating in the Company. executed in 2015. project. As part of the FIA project, the Company’s ongoing efforts with the communities of Camar The program is designed to support initiatives Tourism Development and Socaire have continued. to develop the community’s production The community was involved in drafting a capabilities, leveraging the town’s potential tourism development plan for the area. This The improvements in 2014 include: and human and water resources, while plan included defining locations for attractive prioritizing efficient water use, to cultivate informational signs, which directly benefit the › Enhancing seeding, soil preparation and traditional and alternative high-yield crops › community and its visitors that now have the alfalfa crop care methods. and attract tourism to complement farming chance to learn relevant information about activities. the town’s most important attractions and its ›› Installing an automated spray and drop history, culture and tradition. Informational irrigation system. Initiatives supported by the program in signs were placed in 27 locations to provide Quillagua: useful and interesting data on each attraction. ›› Optimizing the manual harvest mechanism All signs, written in both Spanish and English, to a mechanical system with a central Agricultural Development also feature a QR code that links directly to baler, obtaining an average of 5.6 - 7 ton/ Growing crops in a controlled environment, the town’s website. Structures were erected to ha of alfalfa. which includes a greenhouse for leafy produce shade some particularly significant locations like lettuce and trial plantings of tomato and where visitors will spend longer observing. ›› Improving storage facilities for baled strawberry. alfalfa. These signs reinforce a comprehensive plan In 2014, the program boasted average production to strengthen Quillagua’s tourism potential Production of the Ayllu wine has become a of 4,000 heads of lettuce per month, cultivated that also includes the website www. local and national model. Twenty farmers by the Quillagua Hydroponic Cooperative in oasisdequillagua.cl and training of local tour bring together experience and dedication to response to demand from Aramark and the guides to provide visitors firsthand information produce wine on 4.82 hectares at more than Calama Farmers’ Market. on the town and its attractions. 2,400 meters above sea level in the towns of Toconao, Zapar, Puques and San Pedro de Atacama, making it the wine produced at the highest altitude in Chile. Assistance is provided by a multidisciplinary team of professionals. Our Neighbors

The greenhouse for hydroponic lettuce in Quillagua is designed to provide economic and technical support to benefit neighbors.

The high-altitude vineyards and wine for students in its farming program. The production, specifically in the areas of crop production in Toconao have been strengthened Company provides vital technical support for nutrition and management, irrigation and pest by improvements to vines and sustained these students, who also have the opportunity and disease control for participating farmers growth in the production of Ayllu wine (from to take part in a dual program that enables from the towns of Zapar, Celeste, Toconao, 800 liters in 2012 to almost 4,000 liters in 2014). them to work in the field with SQM experts Talabre, Camar, Socaire, Peine and Quillagua. These accomplishments are complemented by once a week, helping to guide the farmers in Each area’s production is reflected in innovative enhanced storage and wine making technology, the Atacama Tierra Fertil Program. In 2014, we products representative of its local identity. always hand in hand with training from our donated a high-tech greenhouse for growing professionals and external specialists. Strides crops in a controlled environment and provided Agricultural Production Development were also made on initiatives to improve related technical assistance from SQM Plan, Pintados, Pozo Almonte G4-15 irrigation systems on most participating farms professionals. through the Development Projects submitted During the year, the Company continued to to Conadi Calama, which will be carried out in As part of the Company’s commitment, play an active role in the Working Group for 2015. ongoing technical support is provided by a Agricultural Production Development in the multidisciplinary community support team that town of Pintados. The municipal government of SQM continues to work with the Likan Antai addresses matters as diverse as community Pozo Almonte took part in this initiative along Agricultural School to develop the curriculum and social development and agricultural with the National Institute for Agricultural 88 / 89

Development (INDAP), the Pozo Almonte Local Celebrating Christmas with our SQM Provides Assistance for Action Development Program (PRODESAL), Teck- Neighbors Emergencies in Toconao and Zapar Quebrada Blanca and the farmers themselves. Aware of its social commitment and in line Intense winter rains in the Andean foothills in The process resulted in the definition of a with its good neighbor policy, SQM supports a January 2014 devastated the province of El Loa, strategy and projects that benefit farmers variety of community projects each year. stripping farm lands and vineyards in Toconao from local organizations: Asociación Indigena and Zapar of irrigation systems. Aymara Tierras de Jehová, Asociación Indígena In 2014, we supported the “Christmas Eve Aymara Juventud del Desierto and Cooperativa Mission” for the sixth consecutive year. The Intense reconstruction efforts involved support Agrícola Nuevo Amanecer. initiative, which is organized by the CGE from neighbors, the Chilean army and SQM Foundation, provides baskets of food for personnel, who responded promptly to calls As part of this program, the working group Christmas dinner to needy families in different from the affected sectors. continued with the second phase, which towns in the Tarapacá Region. involved technical and financial support for Efforts were carried out in conjunction with the farming associations in the area. The work The Company also holds Christmas parties and the Toconao and Zapar Valley Irrigation conducted in the program’s first three years a gift drive each year, encouraging its workers Committees. The Company provided urgent has led to a to donate items for children and seniors. Worth assistance to these groups and helped repair mentioning are the contributions to students and replace the collapsed canals with HDP 12.5-hectare increase in their farming capacity, at schools in San Pedro de Atacama, Tocopilla, piping to quickly restore irrigation systems, totaling 27 hectares in 2014, by improving soil Antofagasta and Pintados and the support while the community rebuilt their traditional and implementing renewable energies and provided for “Campaña Estrellitas” in Santiago system using stone canals. These efforts were automated irrigation systems. where employees donated personal hygiene all designed to reestablish the water supply items and bed linens to elderly residents of the used to irrigate the small farms and vineyards. In this second phase, efforts are focused on Jesús Carpintero Parish in Renca. decreasing gaps in technology and marketing, The work was evaluated positively by local including enhancing automated irrigation authorities and community organizations, systems, infrastructure, training farmers on mainly farming and irrigation associations, good practices and creating a common logo which were most strongly affected. for agricultural products from Pintados to strengthen their products’ image and enable them to reach more discerning markets.

27 HECTARES have been added to the existing farmland in Pintados between 2010 and 2014 by improving soil and implementing renewable energies and automated irrigation systems. Our Neighbors

Roman Armella is one of the entrepreneurs in the project to plant and produce bales of alfalfa in Talabre. 90 / 91

OUR COMMITMENTS

Topic Commitments 2014 Compliance Commitments 2015 Highlights 2014 Historical Continue to support  Continue to support the We organized cultural initiatives in Quillagua, María Elena Heritage the preservation and preservation and revalorization and Iquique, including festivities for patron saints and revalorization of local culture of local culture by providing workshops to revive traditions such as the fabrication of tin by providing support to support to community initiatives flower wreaths and anniversary celebrations for the towns community initiatives related related to folklore, culture, of Pedro de Valdivia, Pozo Almonte and María Elena. Book to folklore, culture, education education and recreation. publications: "Quillagua Luna que Asombra" and "Cuentos and recreation. de la Pampa". We also collaborated in the making of a documentary about María Elena. In San Pedro de Atacama, we took part in celebrating the Ancestral Spirit Festival and editing the CD "Mi Tierra Lickan Antay" by artist Margarita Chocobar. Education and Continue providing programs  Continue organizing educational We continued to support the mathematics assistance Culture that promote education and cultural programs that program in San Pedro de Atacama, Quillagua and Colonia and culture, placing special foster community development, de Pintados in partnership with Corporación Crea+: We also emphasis on those that strengthening and generating organized several extracurricular, skill-building workshops have the greatest impact on greater impact on neighboring in María Elena such as tennis, soccer and cheerleadering, community development. towns. as well as folk dance and farming workshops in Colonia de Pintados and an English workshop in Quillagua. In San Pedro de Atacama, we sponsored a Juegos Multigrados, financed psychopedagogical assistance and implemented an environmental education program in Chaxa. Solidarity Work SQM will provide assistance to  Continue assisting with We helped our neighbors that had been affected by a variety those affected by emergency emergency situations that of situations, including calls for assistance from institutions situations in the towns may arise in towns near our in Tocopilla to transport aid to victims of the earthquake in located near its facilities. operations. Iquique and Alto Hospicio and the fires in Valparaiso. We provided direct support, in the form of nine containers, to the town of Pozo Almonte, which suffered damage in the earthquake.

 Fulfilled

Partially Fulfilled

 Not Fulfilled Our Neighbors

Topic Commitments 2014 Compliance Commitments 2015 Highlights 2014 Social Continue with the Micro-  Continue with the Micro- Our grants helped implement ten micro-entrepreneurial Development Entrepreneurial Funding Entrepreneurial Funding initiatives in San Pedro de Atacama, five in María Elena and Competition Program in San Competition Program in San three in Quillagua, most of which supply goods or services Pedro de Atacama and María Pedro de Atacama and María previously unavailable in these towns. Elena; incorporate marketing Elena with a focus on training, and sales advice. grants for small initiatives and on-site assistance. Continue with agricultural  Continue with the production In San Pedro de Atacama, we reinforced our commitment program “Atacama Tierra development programs for by supporting the production and commercial development Fertil”, supporting production farming, commerce and value- of area towns, with a particular emphasis on the transfer development in the towns added products, especially of technology and professional expertise for cultivating of the Salar de Atacama. "Atacama Tierra Fertil" in the grapevines, farming alfalfa and producing the Ayllu brand of Maintain support for plan to towns around the Salar de wine. We continued providing support for the Lickan Antai strengthen Likan Antai School Atacama, "Quillagua Tierra School. and sales of local products. Fertil" and the Pintados program that emerged from the working group in that area. Continue the “Quillagua  We continued to provide support for the hydroponic Tierra Fértil” Production production of lettuce and farming of alfalfa, with a particular Development Program with emphasis on the transfer of technology and professional a special focus on tourism, expertise. hydroponic crops and alfalfa. Maintain Agricultural  We continued to participate in the coordinating council Development Program for "Agricultural and Commercial Improvements for the Farmers agricultural associations in of Pintados" with important investments to support two Pintados, as agreed by task farmers that began the process to become certified in good force. Move forward in areas of agricultural practices. We also provided supplies to improve commercial improvement and the irrigation systems for some farmers. incorporating added value. Develop programs to promote We provided support to improve the Chaxa tourist circuit in special-interest tourism in San Pedro de Atacama. We also inaugurated the first phase neighboring towns that add of a program developed in conjunction with the community value to the existing offering to erect informational signs near tourist attractions in and generate production chains. Quillagua and provided funding to train tour guides.

Develop and support initiatives We helped bring the “Fútbol Más” soccer program to in neighboring towns that Tocopilla and organized several initiatives with residents of generate social impact through other neighboring towns such as: Merry Christmas to All, the recreational activities and Fun Summer program and other activities as requested by sports. the municipal governments and community organizations near our operations. We also helped areas around the Salar de Atacama that were affected by heavy winter rains. 92 / 93

4|Environmental Commitment TOGETHER WE ARE MORE SUSTAINABLE ENVIRONMENTAL COMMITMENT

The tamarugo tree and its desert ecosystem are the focus of the Pampa del Tamarugal Center for Environmental Education (CEDAM). This innovative pro- ject involving SQM and the National Forestry Corporation seeks to strengthen sustainable development and environmental education in order to promote and conserve the natural and cultural heritage of the Tarapacá Region. 94 / 95

ENVIRONMENTAL COMMITMENT DOING BUSINESS RESPONSIBLY IN ORDER TO SAFEGUARD OUR SURROUNDINGS IS A CORE CONCERN AT SQM.

Solar evaporation pond with the back- drop of the Salar de Atacama.

QM carries out its operations in to build a solid base of knowledge regarding ENVIRONMENTAL MANAGEMENT harmony with the environment and the ecosystems surrounding its operations SYSTEM G4-EN29/G4-EN34/MM10 in line with its strong commitment that enables it to implement the prevention, The Company’s uses its Environmental Sto sustainable development. We work to ensure mitigation, monitoring and control plans Management System (EMS) at all operating that natural resources and production inputs necessary to ensure that these environments sites to ensure protection of the natural are used sustainably and to minimize the are protected. surroundings and neighboring communities. possible impacts of our production processes. The system, which addresses the environmental This vision has driven the Company’s efforts and social aspects of all new investments, is applied starting from the design stage of any new project. ENVIRONMENTAL COMMITMENT

The EMS makes sure that environmental The following activities have enabled us to were inspected by authorities during 2014 as assessments are conducted for all new reinforce our environmental management part of the government’s annual oversight projects or major modifications to existing efforts: program. These inspections involved the ones. To date, 57 projects have been assessed following agencies: the Regional Health and granted environmental approval. Similarly, ›› Annual independent environmental Agency (Seremi de Salud), the National Forestry the system helps guarantee that closures of audits at our operations in the Salar de Corporation (CONAF), the Superintendency of mining operations are responsibly managed Atacama and Salar del Carmen along with the Environment, the National Geological and based on closure plans for all production sites an internal audit program covering all Mining Service (SERNAGEOMIN), the Agriculture with criteria and measures that meet current operations. and Livestock Service (SAG) and the General environmental regulations. Water Bureau (DGA). In 2014, SQM did not ›› An ongoing environmental training receive any significant fines and/or penalties The EMS also helps ensure protection of program, which is conducted annually for for violations of environmental laws and environmentally sensitive areas, compliance both direct employees and contractors. regulations. with applicable laws, safeguarding of archaeological and cultural heritage, and SQM’s operations in Salar de Atacama, limited impact on the lifestyles, customs and Nueva Victoria, María Elena and Tocopilla traditions of neighboring communities, along with other environmental aspects.

57 0 PROJECTS FINES AND/OR were assessed and received PENALTIES environmental approval. of significance for violations of environmental laws and regulations. 96 / 97

BIODIVERSITY G4- EN 11/ G4- EN 12/ G4-EN 13/ G4-EN14

The chululo (Ctenomys fulvus) prefers desert habitats with sandy areas and feeds mainly on roots and bulbs.

QM’S production facilities are One example is the Company’s operations in Similarly, the Salar de Llamara, located near the located in desert areas that do the Salar de Atacama. Although its property Nueva Victoria operations, was incorporated not have significant biodiversity is located dozens of kilometers from the into the Pampa del Tamarugal National Sbecause of their geographic and climatic Soncor and Aguas de Quelana sectors of the Reserve in 2013 due to a native tamarugo conditions. However, some of its areas of National Flamingo Reserve, both areas are (Prosopis tamarugo) forest located there. Here, influence are valued for their ecological value, protected by environmental monitoring and conservation efforts include an extensive and the Company has developed protection contingency plans implemented by SQM for environmental plan to monitor the level and mitigation plans within each of them. proper safeguarding. and quality of groundwater; the water level, Environmental Commitment

SQM LAND LOCATED WITHIN PROTECTED AREAS AND AREAS OF HIGH BIODIVERSITY VALUE OUTSIDE OF PROTECTED AREAS

Facility Geographic Location Protected Area Size of Pro- Type of Operations Description of SQM’s Presence in Area or Unprotected tected Area Area with High Biodiversity

Salar de Atacama Antofagasta Region, Loa National Flamingo 73985.5 ha. Province, San Pedro de Reserve Atacama District Soncor sector 5017 ha. No production facilities; Environmental monitoring: 1 meteorological environmental monitoring station, 84 hydro-geological monitoring points, performed. 8 fauna monitoring points and 5 marine life monitoring points.

Aguas de Quelana 4136 ha. No production facilities; Environmental monitoring: 61 hydro-geological sector environmental monitoring monitoring points, 9 fauna monitoring points, 10 performed. marine life monitoring points and 2 vegetation monitoring transects.

Nueva Victoria Tarapacá Region, Huara Pampa del Tamarugal 102264 ha. Province, Pozo Almonte National Reserve District Bellavista sector 2654 ha. No production facilities; Environmental monitoring: 30 hydro-geological environmental monitoring monitoring points, 20 tamarugo monitoring performed. points, 4 fauna monitoring stations and 8 vegetation monitoring transects.

Pintados sector 14146 ha. No production facilities; Environmental monitoring: 20 hydro-geological environmental monitoring monitoring points. performed.

Salar de Llamara 4310 ha. 7 wells for extracting water Water extraction wells, pipelines and electrical in use; environmental lines. Environmental monitoring: 63 hydro- monitoring performed. geological monitoring points, 1 marine life monitoring point, 7 fauna monitoring points, 9 vegetation monitoring transects, 16 retama monitoring points and 24 tamarugo monitoring points.

water quality and aquatic biota in Puquios de in order to ensure that its operations are and are complemented by programs to Llamara; and the flora and fauna in that area. carried out in compliance with predefined monitor responsible water management and environmental objectives and that decisions the hydrology of the aquifers from where we The Company’s production activities in are made promptly in cases where deviations extract industrial water (Salar de Atacama, those areas have been evaluated using the are identified between monitoring results and Salar de Llamara and Salar de Sur Viejo) and Environmental Assessment System created commitments made. mineral resources for production processes, as by law 19,300 (General Environmental Bases). is the case with the brine deposits in the Salar SQM implements robust environmental SQM’s monitoring plans extend to vegetation, de Atacama. monitoring and control plans in these sectors flora, fauna and aquatic biota, among others, 98 / 99

SPECIES WITH CONSERVATION STATUS

Andean flamingo Chilean flamingo Jamesi flamingo (Phoenicoparrus Andinusa) ( Phoenicopterus Chilensis) ( Phoenicoparrus Jamesi)

Andean seagull ( Larus Serranus)

Large dragon ( Ctenoblepharys erroneus)

Fabiani lizard Constanza lizard Culpeo fox ( Liolaemus Fabiani ( Liolaemus constanzae) ( Pseudalopex culpaeus)

Grey fox Andean gerbil mouse Chululo Andean toad (Pseudalopex griseus) (Eligmodontia puerulus) (Ctenomys tulvus) (Bufo spinulosus)

Endangered Vulnerable Data Deficient Rare Least Concern ENVIRONMENTAL COMMITMENT

SALAR DE ATACAMA

Tamarugo conebill Lava lizard (Conirostrum tamarugense) (Microlophus theresioides)

Ñandú (Pterocnemia pennata tarapacensis)

Peregrine falcon Peruvian serpant Tamaruga tuco-tuco (Falco peregrinus) (Tachymensis peruviana) (Ctenomys robustus)

Andean toad Algarrobo tree Gecko Grey fox Tamarugo tree (Bufo spinulosus) (Prosopis flexuosa) (Phyllodactylus gerrhopygus) (Lycalopex griseus) (Prosopis Tamarugo)

NUEVA VICTORIA (SALAR DE LLAMARA, SUR VIEJO, BELLAVISTA) 100 / 101

ENVIRONMENTAL MONITORING PLAN

SALAR DE ATACAMA G4-EN14

s part of the project “Changes ›› Soil moisture content with 18 sampling This monitoring is complementary to the hydro- and Improvements to Mining points. geological and biotic monitoring carried out by Operations in the Salar de SQM as part of its environmental monitoring AAtacama,” SQM carries out an environmental › Aquatic life with 25 sampling stations plan. › monitoring plan to evaluate the status of the distributed among the three lake systems systems in the Salar de Atacama. This includes in the Salar de Atacama (Soncor, Aguas de This monitoring is performed in conjunction an ongoing hydro-geological monitoring plan Quelana and Peine). with CONAF and Universidad Católica del Norte and biotic monitoring conducted biannually in January, April, July and October of each year. in January and April, when vegetation is most The Company also has 225 aquifer monitoring The variables monitored include: vigorous following summer rains in the area. points in the Salar de Atacama for hydro- The Company monitors a set of variables that geological monitoring, which includes: ›› Lake surface in the Soncor and Peine lake allows it to detect changes in lake systems and systems. vegetation in a timely manner using direct, ›› Measuring the levels and physical and on-site measurements and high-resolution chemical qualities of water distributed ›› Water column depth. satellite images (QuickBird or WorldView 2). among shallow and deep wells, metric rods at lagoon level and gauging stations. ›› Bird populations. The variables observed as part of this biotic monitoring in the Salar de Atacama include: ›› Measuring meteorological variables ›› Population of high Andean flamingos. through meteorological stations known as ›› Vegetation with 99 monitoring points “Chaxa” and “KCl” ›› Abundance of food supply for flamingos. along the eastern edge of the Salar de Atacama. In addition to the environmental monitoring ›› Physical and chemical properties plan, we signed a cooperative agreement determining food supply of wildlife in ›› Flora with 75 plots distributed in 7 with the National Forestry Corporation lakes. transects along the eastern edge of the (CONAF) in 1995. This agreement includes an Salar de Atacama. environmental monitoring program entitled ›› Human activities related to mining that “Bird Life Habitat and Population in the Salar could impact the environment. ›› Bioindicators with 66 vegetation transects de Atacama,” which is aimed at opportunely in 8 profiles, of which 12 transects are detecting changes in the lake’s surface and Como parte del convenio entre SQM y CONAF controls and 54 are indicators. depth, the bird population, flamingo food Región de Antofagasta, se realizó por segundo supply, local physical and chemical conditions año el anillamiento de los flamencos o ›› Fauna with 18 sampling stations and human activities. polluelos recién nacidos en la temporada distributed among areas with vegetation. Environmental Commitment

As part of the agreement between SQM and professionals from SQM. This process is part CONAF Antofagasta, for the second year in a of the International Andean Flamingo Banding row flamingos and recently hatched chicks Program spearheaded by the Andean Flamingo were banded during the 2013-2014 season. In Conservation Group, which includes Argentina, May, 750 Andean flamingos were banded in Bolivia, Chile and Peru. The group’s objective is the Puilar Lagoon, located in the Soncor lake to monitor flamingo development and behavior system in the National Flamingo Reserve, patterns in the plateaus of the central Andes in a joint effort involving the Tarapacá and Mountains. Atacama regional CONAF offices, members of the Atacameña Community of Toconao and

SQM’s project “Changes and Improvements to Mining Operations in the Salar de Atacama,” includes an environmental monitoring plan (hydro-geological and biotic) to evaluate the status of the systems in the Salar de Atacama. 102 / 103

ENVIRONMENTAL MONITORING PLAN SALAR DE LLAMARA

SQM has developed an environmental monitoring plan in the Salar de Llamara, which is located near our operations in Nueva Victoria.

n order to conserve biodiversity in the As part of the Pampa Hermosa project, SQM WorldView2) taken each year in November, when Tarapacá Region, the Salar de Llamara was carries out an environmental monitoring there is the greatest amount of vegetation. classified as a regional strategic priority plan to ensure that the project’s activities A series of physiological measurements of a Isite and was incorporated into the Pampa adhere to the provisions of the environmental group of tamarugos are taken periodically, del Tamarugal National Reserve to protect a assessment. including measuring the foliar hydric potential native tamarugo (Prosopis tamarugo) forest of branches, stomatal resistance, isotopic and puquios with bacterial formations located The Company monitors tamarugo vitality using discrimination of carbon 13 and enrichment there. high-resolution satellite images (Quickbird or with oxygen 18. These measurements are ENVIRONMENTAL COMMITMENT

determining factors in analyzing the hydric The variables controlled by monitoring of The environmental status of tamarugos. Experts also monitor aquatic biota include: retama thickets and hygromorphic meadows monitoring plan implemented in the area around the lagoons known as ›› Composition of phytoplankton and by SQM includes: monitoring Puquios de Llamara in order to evaluate the phytobentos. hydric status and vitality of these plants. of tamarugo vitality, aquatic Measurements include the percentage of green ›› Diversity of zooplankton and bentos. growth, vigor and phenology. biota, ground water and ›› Development and status of macrophytes. hydrogeological conditions We also conduct semi-annual monitoring of underwater and surface biota (water quality) in ›› Status of fish fauna. and compensation measures the lagoons in order to verify that there are no involving irrigation, unforeseen effects on biotic systems. The Company also has a Hydrological Monitoring Plan used to verify forecasts of tamarugo planting, A mitigation measure has been implemented project impacts, which is a key component to reduce the effects of the decline in the water of its Early Warning Plan. It involves monthly phytosanitary control, table on the Puquios de Llamara. Maintaining measurements of aquifers to determine the off-site conservation of the levels and chemical quality of the water volume and flow of water extracted from wells. with minimal variations facilitates adequate tamarugo germplasma and development of biotic systems. Our efforts in this area also include repair and compensation measures. In 2014, we plant production, among continued activities involving irrigation, other activities. tamarugo planting, phytosanitary control, off- site conservation of tamarugo germplasma and plant production. 104 / 105

Puquios de Llamara Trail ENVIRONMENTAL COMMITMENT

LLAMARA TRAIL

onscious of the importance of sustainably using natural resources in the Tarapacá Region, CSQM teamed up with the National Forestry LENGTH OF THE PUQUIOS DE Corporation (CONAF) to create the “Puquios 250 LLAMARA TRAIL. de Llamara Trail”, inaugurated in 2014 in the southern portion of the Pampa del Tamarugal meters National Reserve in the district of Pozo Almonte.

The trail aspires to contribute to education about and conservation of this site of such FEATURING high biological and scenic value. Boasting OBSERVATION ENVIRONMENTAL the only bodies of water in the intermediate 5 INFORMATION FOR depression in the Tarapacá Region, it is a place Points of rest for birds traveling to and from interior VISITORS. areas and home to a native forest of tamarugo trees, an endemic species in Chile.

The initiative welcomes children and youth + 26,000 from different schools and visitors from around SIZE IN HECTARES OF THE the world to learn more about the geological SALAR DE LLAMARA SECTOR IN processes that help form the Puquios de THE PAMPA DEL TAMARUGAL NATIONAL RESERVE. Llamara, as well as the flora and fauna that +2,000 presently inhabit the area. TAMARUGO TREES IN THE SALAR DE LLAMARA. + 4,000 APPROXIMATE SIZE IN HECTARES OF THE TAMARUGO FOREST. 106 / 107

WASTE MANAGEMENT G4-EN2/G4- EN 22 / G4- EN 23/ G4- EN 24/ G4- EN 25/ G4- EN 26/G4-EN28

THE HANDLING, STORAGE, TREATMENT AND DISPOSAL OF WASTE IS REGULATED AND INTERNALLY AUDITED TO ENSURE FULL COMPLIANCE.

SQM’s operating facilities in Nueva Victoria, Tarapacá Region.

QM has specially equipped, requires the use of authorized transport and generation to final disposal. approved storage and disposal sites recipients to treat and dispose of all types of for hazardous and non-hazardous waste. During 2014, 33% of hazardous waste generated Sindustrial waste as well as temporary storage by the Company was reutilized using an sites. The performance and execution of these external company that uses it as alternative plans is verified using ongoing internal fuel. In 2014, SQM’s operations did not generate The Company applies waste management environmental audits, which are intended hazardous waste that was treated or disposed plans at all of its facilities. Each of these plans to guarantee proper waste handling from of internationally. Environmental Commitment

Employees play a key role in properly managing processes. For example, 474,855 m3 of water The Company uses management plans and waste, which is why the Company makes a from domestic liquid waste was reused in the authorized disposal sites at our facilities and considerable effort to train them how to handle production processes at our facilities in María camp accommodations for solid domestic and segregate waste, and how to properly Elena, Coya Sur and Pedro de Valdivia. waste or contracts out services to dispose of dispose of it in designated facilities provided this waste in authorized landfills. to ensure appropriate waste management. In the case of Antofagasta and Tocopilla, domestic liquid waste is disposed of in the The following table details total waste sent for SQM possesses authorized water treatment public sewer system and, therefore, no dumping final disposal by type: plants at all of its industrial and camp occurs that could affect biodiversity and accommodation facilities in order to handle protected habitats. Sewage treatment plants domestic liquid waste. Effluents emitted are maintained and monitored by specialized from these plants comply with applicable service providers. regulations and are reutilized in production

TOTAL WASTE SENT FOR FINAL DISPOSAL AND/OR TREATMENT

Type of Waste Sent for Final Disposal 2014 2013 2012

Hazardous industrial waste (ton) 1,249 2,482 1,634

Non-hazardous industrial waste (ton) 1,843 4,670 1,413

3,092 7,152 3,047

In 2014, no significant spills were reported Most of our products are handled in bulk, which at the Company’s operating facilities and significantly reduces packaging and waste. production sites.

33% 474,855m3 OF HAZARDOUS OF WATER FROM WASTE treated domestic liquid waste is reutilized in generated was reused production processes in María Elena, Coya Sur and Pedro de Valdivia 108 / 109

RAW MATERIALS

AND INPUTS G4-EN1 / G4-EN30 THE PROCESSES AT OUR DIVERSE OPERATIONS ENABLE US TO EXTRACT CALICHE ORE AND BRINES FROM THE VAST, RICH RESERVES IN NORTHERN CHILE, WHICH GIVE LIFE TO AN ARRAY OF PRODUCTS AND SUBPRODUCTS.

QM’s main raw materials are caliche The underground salt brines found in the In terms of identifying the environmental ore and brines, which are extracted Salar de Atacama have high concentrations of impact of transporting products, materials and from reserves located in the Tarapacá lithium and potassium, among other elements. people, at SQM we make it a priority to comply Sand Antofagasta regions. The products obtained from this resource are with the different domestic and international potassium chloride, lithium carbonate, lithium regulations to control any environmental In fact, Chile is home to the most important hydroxide, potassium sulfate and boric acid. effects, and have safety data sheets for each of source of commercially exploitable caliche our products and substances that require them. ore in the world. This mineral has high One of the most important elements of SQM’s As part of environmental assessments for concentrations of sodium nitrate and business strategy lies in how these two projects, we identify all relevant impacts and iodine and is found beneath inert material resources complement each other to create make modifications or implement mitigation approximately two meters below the desert’s one of its most important products: potassium measures accordingly. However, for the surface, in layers two to three meters thick. nitrate. reporting period no significant environmental impacts related to these matters have been identified.

CONSUMPTION OF PRODUCTION INPUTS 2014

Input Unit 2014 2013 2012

Tires Units 151 164 169

Coating Thousands of m2 1,886 2,337 2,797

Lime Tons 9,707 9,844 11,009

Sulfuric acid Tons 5,769 15,830 19,987

Sulfur Tons 10,655 28,716 15,597

Anti-caking agent Tons 25 133 91

Collectors Tons 485 477 665

Kerosene m3 5,855 6,322 6,508

Soda ash Tons 77,219 85,633 79,417

Explosives Tons 9,191 11,407 12,197 Environmental Commitment

Different minerals are obtained from the brine through the Company’s production processes at the Salar de Atacama. 110 / 111

ENERGY G4-EN3/G4-EN4/ G4-EN5/ G4-EN6/ G4-EN7 MORE THAN 90% OF ALL ENERGY CONSUMED IN SQM’S OPERATING PROCESSES COMES FROM RENEWABLE SOURCES.

he main sources of energy used by Solar energy is the most widely used and This operating advantage is only possible SQM are: Solar power, electricity plays an especially important role in the solar because of our location in the Atacama Desert, obtained from the Great North evaporation ponds in Coya Sur, Nueva Victoria which is characterized by high radiation TInterconnected System (SING) and fuels such and the Salar de Atacama. and a high rate of water evaporation. These as oil and natural gas. conditions allow the Company to execute processes designed to concentrate solutions Environmental Commitment

in ponds through selective precipitation year- round using solar energy. OF THE ENERGY Currently, SQM has over 3,000 hectares of used at our solar evaporation ponds, which allows it to 92.9% operations harness significant amounts of solar energy, is solar. accounting for 92.9 % of all energy consumed in our facilities. In other words, almost 100% of the energy that is consumed by the Company comes from a renewable source.

DIRECT AND INDIRECT ENERGY CONSUMPTION

2014 2013 2012

Solar energy 82,559,123 76,662,258 68,790,595

Electricity 1,803,659 1,908,326 1,887,830

Diesel 1,727,235 1,623,064 2,357,361

Natural gas 1,862,197 1,623,499 1,526,793

Liquefied gas 29 14,965 6,277

Bunker fuel 936,298 880,835 1,009,807

Gasoline 367 146 1,332

TOTAL ( GJ) 88,888,908 82,713,092 75,579,996

THERMAL ENERGY AND COYA SUR PHOTOVOLTAIC ELECTRICITY SAVINGS AT COYA PROJECT SUR ATMOSPHERIC PLANT In 2014, SQM inaugurated its first photovoltaic technology. From it, we can work to enhance the As a result of the work carried out for the plant for industrial use. The plant’s primary performance and actual efficiency of this type M1 Operational Excellence Plan, operational objective is to meet the electricity demands of of facility, analyze the criticality of photovoltaic improvements were made at the Nitrate the offices of the Nitrates and Iodine Operations platforms, track the true maintenance costs and Crystallization Atmospheric Plant in Coya Sur. Senior Vice President and Project Management obtain information on the efficacy of different These improvements generated savings of 8% Department in Coya Sur and to fortify the use of assembly systems. in thermal energy and 11% in electricity. clean energy in our organization. The energy generated by this solar plant is Its second objective is to serve as a pilot equivalent to the power needed to run 40 program for better understanding this homes and the investment is expected to be recovered after six years in operation. 112 / 113

AIR

EMISSIONS G4-EN30/ G4-EN15/G4-EN16/G4-EN17/G4 EN18 /G4-EN19/G4-EN20 SQM HAS AIR QUALITY MONITORING PLANS CONSISTING OF A NETWORK OF CONTROL STATIONS TO ENSURE REGULATORY COMPLIANCE

t its mine sites and production A reduction of over 96.8% in PM10 air emissions The calculation estimated annual emissions plants, the Company continuously in María Elena was attained between 2007 and for 2012, 2013 and 2014 of less than one million monitors air emissions using 2014 thanks to operating tons of CO2 equivalent each year. Adetailed projections of expected environmental effects, emissions abatement equipment and measures implemented by SQM. There was a SQM does not produce, import or export any proper monitoring and control of emissions 31% reduction in emissions over the prior year, ozone depleting substances. and environmental impacts. Control measures which enabled the Company to comply with include covering trucks with tarps during the three-year average for PM10 air quality transport and wetting roads for dust control at mandated by the María Elena Decontamination our María Elena and Coya Sur facilities. Plan currently in effect. It is important to point out that the PM10 air quality standard (24 hour SQM has put forth considerable effort to concentration) has been met every year since manage and control its PM10 atmospheric 2010. emissions. For this, the Company has a vast air quality monitoring network in the town Although the emissions attributable to of María Elena, participates in the air quality SQM’s operations in Tocopilla are minor as monitoring efforts in Tocopilla and has installed compared to other fixed sources in the city mobile monitoring stations in accordance (less than 0.2% of total emissions come from with different environmental and operational SQM), the Company has been proactive in requirements. All of these measures help implementing and maintaining the measures ensure compliance with applicable regulations. needed to reduce its emissions and meet the In addition, meteorological stations are key requirements in the Tocopilla Decontamination in monitoring solar evaporation processes at Plan (PDA). In fact, air emissions from port its facilities. The Company has implemented operations have declined by almost half from 7 environmental monitoring plans that include tons of PM10 in 2007 to 4.02 tons in 2014. conducting isokinetic measurements on smokestacks (on dryers and boilers) and With respect to greenhouse gas emissions, monitoring air quality in order to verify SQM estimates the carbon footprint of several 96.8% compliance with environmental regulations of its products, from the mineral extraction applicable to our facilities. processes to the finished product, including REDUCTION domestic and international transport. in PM10 emissions in María Elena between 2007 and 2014. Environmental Commitment

In María Elena, particulate matter emis- sions fell by more than 96.8%. 114 / 115

WATER G4--EN2/G4-EN8/G4-EN9/G4-EN10 AWARE OF THE IMPORTANCE OF PROTECTING SUCH A SCARE RESOURCE, THE COMPANY HAS IMPLEMENTED INITIATIVES SUCH AS RECIRCULATING WATER FOR USE IN OUR PROCESSES AND USING INDUSTRIAL WATER FROM TREATED DOMESTIC WASTE WATER TO SUPPLY ALMOST 100% OF CONSUMPTION NEEDED TO PRODUCE LITHIUM HYDROXIDE AND LITHIUM CARBONATE. Environmental Commitment

ater is a scare resource. As The measures implemented include important environmental variables (vegetation, such, it must be rationally reincorporating all water treated in SQM flora and fauna) in aquifers and surface water used in production processes. sewage treatment plants into its production sources where the Company has water rights. W processes and contracting suppliers that offer SQM abides by applicable regulations in using industrial water from treated domestic waste To do so, extensive hydro-geological modeling all water rights held by the Company. SQM water. The Company has used these sources is designed, validated and tested under the periodically informs authorities of the water to supply almost 100% of the industrial water supervision of national and international consumption in its production processes and needed to produce lithium hydroxide and experts, based on which the Company conducts considers new alternatives for more efficiently lithium carbonate. ongoing monitoring of expected behavior. utilizing water by evaluating each facility’s water management indicators on a yearly Water extracted for production undergoes a basis. thorough prior study to prevent damage to

VOLUMES EXTRACTED FROM MAIN WATER SOURCES DURING 2014

Facility Water Consumption 2014

Groundwater Surface Water Third-party Supply Total Water Con- (m3) (m3) (m3) sumption (m3) at Production Facilities

Salar de Atacama 7,211,325 7,211,325

Salar del Carmen 470,182 470,182

Nueva Victoria 11,939,744 11,939,744

María Elena, Coya Sur, Pedro de Valdivia 7,180,825 469,843 7,650,668

Pampa Blanca

Total per category (m3) 19,151,069 7,180,825 940,025 116 / 117

INVESTMENTS IN

ENVIRONMENTAL MATTERS G4-EN31

QM’s efforts to protect and preserve ENVIRONMENTAL INVESTMENTS the environment include annual 2014 (THUS$) investments in environmental Sprojects. These investments totaled ThUS$ 1,643 2,710 in 2014, ThUS$ 9,147 in 2013 and ThUS$ 10,522 in 2012.

The investments made in 2014 were mainly related to compliance with environmental commitments to monitor significant variables and implementation of mitigation and 470 environmental management measures. 297 293 7 They also ensured responsible handling of substances and waste from the Company’s Improvements Environmental Environmental Domestic and Hazardous mining operations and production plants and to assessments management industrial waste environmental/ personal, waste management environmental and sanitary conditions in hygiene/ monitoring plans management accordance with current regulations. sanitary and mitigation conditions measures

ENVIRONMENTAL INVESTMENTS

2014 2013 2012

Improvements to environmental/hygiene/sanitary conditions 297 835 2,878

Environmental assessments 293 1,349 1,448

Environmental management personal, monitoring plans and mitigation mea- 1,643 3,770 4,517 sures

Domestic and industrial waste management 7 489 168

Hazardous waste management 470 2,731 1,511

Total expenditures (ThUS$) 2,710 9,174 10,522 Environmental Commitment

Environmental monitoring is conducted at different facilities to ensure compliance with regulations and our commitments. 118 / 119

OUR COMMITMENTS

Topic Commitments 2014 Compliance Commitments 2015 Highlights 2014 Environmental Continue to oversee and  Continue to oversee and verify We carried out 100% of the scheduled environmental Management verify environmental aspects environmental aspects of audits, which consisted of 44 internal audits and 2 external System of the Company’s production production processes through audits. We also continuously verified compliance with the processes through the 2014 the 2015 environmental auditing requirements of the Responsible Care program. environmental auditing program and verification for program. Continue verification ASIQUIM's Responsible Care for ASIQUIM's Responsible program for Nueva Victoria Care program obtained in 2013 facilities. for Nueva Victoria facilities. Raw Materials Oversee and verify  Continue to oversee and verify We carried out 100% of the scheduled environmental and Inputs environmental aspects of environmental aspects through audits, which enabled us to verify compliance with the the Company’s production internal environmental audits. environmental aspects of our production processes. processes through the environmental auditing program. Oversee and verify  Continue to oversee and verify We carried out 100% of the scheduled environmental audits, environmental aspects related environmental aspects through which enabled us to verify compliance of raw materials and to natural resources and inputs internal audits. inputs used in our production processes. through the environmental auditing program. Air Emissions Ensure emissions monitoring  Guarantee execution of We carried out 100% of the scheduled environmental is conducted as part of the environmental monitoring plans audits, which enabled us to verify compliance with the Company’s environmental and related monitoring. environmental monitoring of our production processes. monitoring plans. Guarantee compliance with  Ensure implementation We carried out 100% of the scheduled environmental audits measures in decontamination and operation of emissions for 2014, which enabled us to verify compliance with the plans related to operating reduction and control measures environmental measures in the decontamination plans. facilities. in decontamination plans related to operating facilities.

 Fulfilled

Partially Fulfilled

 Not Fulfilled Environmental Commitment

Topic Commitments 2014 Compliance Commitments 2015 Highlights 2014 Energy Continue searching for  Continue researching new We built the first photovoltaic plant for industrial use at alternative uses for solar alternatives for solar energy SQM. energy that can be applied and that can be applied in our add value to SQM’s production production processes. processes. Water Continue activities associated  Carry out activities associated We conducted all monitoring for the hydrogeological with the environmental with the environmental environmental monitoring plans, which enabled us to ensure monitoring plans (Salar de monitoring plans (Salar de responsible use of water and timely control of environmental Llamara, Salar de Atacama Llamara, Salar de Atacama and impacts. and Pampa del Tamarugal), Pampa del Tamarugal), ensuring ensuring responsible use of responsible use of water and water and timely control of timely control of environmental environmental impacts. impacts. Biodiversity Continue to monitor flora,  Monitor flora, fauna and aquatic We conducted all monitoring for the environmental fauna and aquatic biota in biota in the Salar de Llamara, monitoring plans, which enabled us to track environmental the Salar de Llamara, Pampa Pampa del Tamarugal and the impacts on flora and fauna. del Tamarugal and the Salar Salar de Atacama as part of de Atacama as part of the the Company’s environmental Company’s environmental monitoring plans. monitoring plans. Waste Complete environmental  Ensure compliance with We carried out 100% of the scheduled environmental Management training program for 2014. environmental training program training sessions. for 2015. Ensure and control correct  Ensure and control correct We carried out 100% of the scheduled environmental implementation of hazardous implementation of hazardous audits, which enabled us to verify compliance with the waste management plans. waste management plans. environmental measures in waste management plans. Investments Make environmental  Make environmental We made 100% of the environmental investments committed in Environmen- investments scheduled for investments scheduled for to for 2014. tal Matters 2014 and other investments 2015 and other investments identified during the year that identified during the year that are necessary for favorable are necessary for favorable environmental results. environmental results. 120 / 121

5|Our Clients TOGETHER, WE ARE MORE PRODUCTIVE Our Clients

SQM’s products meet the stringent standards of both domestic and international markets, helping maintain and strengthen long-term, mutually beneficial rela- tionships with our clients. 122 / 123

OUR

CLIENTS G4-PR4 QUALITY MANAGEMENT, OPTIMIZATION AND STRICT CONTROL EFFORTS HAVE ENABLED THE COMPANY TO BUILD TRUST WITH ITS CLIENTS.

Open-field production using automa- ted spray irrigation system.

QM’s clients are located in countries where we do business, helping to to efficient and effective management as a very demanding domestic and maintain and strengthen long-term, mutually result of our ability to meet market challenges international markets. For this beneficial relationships with our clients. with responsibility, innovation and quality. Sreason, the Company must ensure delivery and compliance with the standards in each of the Our global presence has been possible thanks It is crucial to SQM that clients are satisfied with the quality of our products. As a result, Our Clients

the Company has implemented: or voluntary codes in the United States specifically related to product information ›› A Quality Management System and other and labeling. ongoing efforts to optimize all of its manufacturing, marketing and distribution It is vitally important to SQM to guarantee processes, ensuring compliance with compliance with environmental, safety and production quality indicators and product quality standards. Therefore, as excellence in all operations, which are part of its Sustainable Development Policy, continuously reviewed. SQM undertakes to comply with current laws and regulations that apply to operations, ›› We believe that trust and transparency production activities and services. are fundamental to the supplier-customer relationship. In this spirit, SQM promotes Considerable information is exchanged CLIENT SURVEYS open communication channels staffed between SQM and its clients. During 2014, 46 46 ON SUSTAINABILITY AND by an excellent technical team that is customer surveys on sustainability and quality QUALITY MATTERS available to answer questions and respond matters were submitted, 48 product quality RESPONDED IN 2014 to technical or service complaints. statements were issued, two audits were conducted by lithium customers and two by ›› We are committed to providing a response iodine customers. as quickly as possible and allowing clients to conduct audits on an ongoing basis. Client satisfaction evaluations are contained in STATEMENTS a document known as a Call Report, where each › A Quality Complaint System, which is customer concern is specifically addressed 48 ON PRODUCT › QUALITY designed to ensure satisfaction with by sales directors and sales managers, who product deliveries and provide technical then leave meeting notes as to the matters and safety information on the use and discussed. Any customer complaint received is handling of products. In 2014, the Company entered into the Quality Management System detected one violation of legal regulations by sales coordinators so the respective area can investigate and respond to the matter. AUDITS 4 BY CLIENTS 124 / 125

SALES AND PRODUCT MARKETS

QM has an extensive company- owned sales and distribution network, which it uses to market Sand distribute over 94% of the Company’s production to markets in North America, South America, Asia, Africa, Oceania and Europe.

Port of Tocopilla Our Clients

LOGISTICS AND DISTRIBUTION NETWORK WITH 25 COMMERCIAL OFFICES OUTSIDE CHILE, OUR PRODUCTS ARE MARKETED IN AND DISTRIBUTED TO MORE THAN 110 COUNTRIES ON SIX CONTINENTS.

ne of SQM’s strengths is its global and new crossings added to increase safety presence, including an extensive for persons moving from one point to another network of trucks and railways, within the port. Improvements also include Oexclusive access to the Port of Tocopilla, a new storage warehouse, an enhanced and sales and representation offices in 25 mechanical arm for bulk loading onto vessels countries. SQM also has warehouses and and other measures to optimize operations. fertilizer mixing plants in strategic markets as well as distribution agreements and joint ventures throughout the world.

The Company’s extensive logistics network has allowed it to bring its products to more than 110 countries on six continents, efficiently managing resources and promptly delivering products to satisfy clients’ needs. OF THE 194 OFFICIALLY In 2014, we made important improvements +110 RECOGNIZED NATIONS, SQM to the facilities at the Port of Tocopilla. First, PRODUCTS ARE SOLD IN we inaugurated new offices and a currency COUNTRIES exchange desk for workers near the port’s northern entrance. The new facilities have centralized the industrial security, contract and port access operations, making for more OUTSIDE CHILE’S fluid and controlled transit in the area for both BORDERS, SQM HAS motorized vehicles and pedestrians. Existing 25 COMMERCIAL OFFICES pedestrian crossings have been renovated 126 / 127

OUR

CERTIFICATIONS G4-PR1 /G4-PR4/ G4-PR6/ G4-PR7/ G4-PR9 YEARLY EXTERNAL AUDITS CERTIFY COMPLIANCE WITH THE ISO 9001:2008 CERTIFICATION THAT SQM HAS FOR SEVERAL PRODUCTS.

he Company’s bond with its clients One of SQM’s ongoing concerns is to properly In 2014, SQM reported no incidents of non- is backed by the implementation and supply our products. As such, in addition compliance with regulations or voluntary codes maintenance of this independent to striving for operational excellence, the concerning marketing communications. Tinternational certification for the following Company continuously follows up with them. production and sales processes: We are also constantly concerned with our The Company has developed a value chain that ability to quickly react to changes in national is designed to satisfy the needs of the most ›› Iodine since 1994. and international regulations that may affect diverse crops and soils, strengthening their the sale of our products. yield and profitability. This is further proof of ›› Potassium nitrate and sodium nitrate its commitment to be a strategic partner for (standard, refined and technical-grade) One such example is the European Union’s its clients. since 1998. chemical substance management system (Registration, Evaluation and Authorization In order to accomplish this, the Company has a ›› Some soluble products for specialty plant of Chemicals or REACH). In 2014, the Company broad network of highly specialized technical nutrients since 1998. updated 5 chemical substances from the SPN and agricultural experts in the field of specialty and lithium product categories marketed by plant nutrients who direct research projects on ›› Lithium carbonate (industrial, technical SQM within the REACH system. These products, specific soil and crop requirements and provide and battery-grade) since 2005. which account for 40% of the products in these expert advisory services in plant nutrition. categories, were evaluated in health and safety ›› Lithium hydroxide (industrial, technical matters. and battery-grade) since 2007. SQM has developed a global branding strategy To reinforce its commitment to delivering that includes guidelines on ethics, corporate quality products and services, each year the governance and procedures that have been Company conducts a series of internal and distributed to sales offices and subsidiaries. external audits to monitor the processes They are also available in digital format. certified under ISO 9001:2008. Our Clients

RESPONSIBLE

CARE G4-15

s part of SQM’s commitment to sustainable development, in 2013 the Nueva Victoria operations Alocated in the Tarapacá Region obtained Responsible Care certification, an international initiative for the chemical industry. This certification involves voluntary commitments to making a continual effort in the following areas: production processes; handling, distribution, use and disposal of products; health and safety of individuals and protection of the environment and the community.

Nueva Victoria operations. 128 / 129

ONGOING ASSISTANCE IN LIGHT OF THE DIFFICULT LANDSCAPE CURRENTLY FACING AGRO-BUSINESS, OUR COMPANY DEVELOPS SOLUTIONS TO OPTIMIZE RESOURCES.

SQM’s products—distributed to over half the world—provide solutions to improve global nutrition and health.

n order to achieve desired quality levels and programs and quality solutions obtained from activities such as technical talks, seminars, make investments profitable, SQM fosters natural raw materials, optimizing increasingly publications and support material. and recognizes the importance of the agro- scarce resources such as water and farmable Ibusiness, providing highly developed nutritional soil. It does this through complementary Our Clients

COMMERCIAL EVENTS PARTICIPATION IN INTERNATIONAL CONFERENCES AND SEMINARS HELPS SQM STRENGTHEN ITS INDUSTRY POSITION AND CONTRIBUTE TO THE SECTOR’S DEVELOPMENT.

QM has a strong global presence in brings together the major players in the ›› SQM sponsored the 5th International the world’s most important markets Ecuadorian and global flower markets, Water Soluble Fertilizer Conference and has ties to a wide variety of including growers, exporters and suppliers and Exhibition, held in June in Beijing, Sindustries and applications through its five from more than 20 countries. Held October China. SQM China is a founding member business lines— specialty plant nutrition; 1st-4th in Quito, Ecuador, it attracted over and gold sponsor for this event, which has iodine and derivatives; lithium and derivatives; 3,000 visitors. They had the chance to become the leading platform for business industrial chemicals and potassium—which learn more about our complete product representatives, research institutes and has enabled it to take part in important portfolio, particularly those recommended regulators to meet and discuss matters international events. for growing flowers such as Ultrasol® K, related to soluble fertilizers. Over Ultrasol® Calcium and Ultrasol® Magnum 400 participants from more than 200 The Company participated in numerous P44, which improve the growth, physical companies in 15 countries attended the commercial events in 2014, including: quality and resistance of flowers for conference. SQM gave presentations on export. the multiple benefits of using soluble NPK ›› To back our commitment to the growth mixtures based on plant growth stages of the global agriculture industry, SQM ›› For the first time ever, SQM Iberian as opposed to direct fertilizers in order participated in the leading sector event: participated in the 6th version of Fruit to reduce the incidence of errors that the New Ag International Conference & Attraction, the main event for the fruit and negatively affect crop yields. Exhibition 2014. This year’s trade fair was produce industry held in October in IFEMA, held in Warsaw, Poland, and attended by Madrid. Our involvement was intended to more than 600 participants. SQM’s nitrate reinforce and diversify our position in the potassium-based nutrition solutions once Spanish market. The event was attended again attracted considerable interest at by a large number of visitors, who had the the conference. They are considered the chance to learn more about our offering most viable and advanced solution on the of specialty plant nutrients as well as new market for ensuring better crop yields and products launched such as the Speedfol® quality, which clearly results in a greater Olivo SP line, a complete nutritional return on investment for growers. program with the ideal balance for all stages of olive production and Qrop® ›› To reinforce our Company’s position in Complex Top K, a granular complex based the flower market, SQM Ecuador took part on the purest, most homogenous and once again in Agriflor 2014. This trade fair most effective potassium nitrate. 130 / 131

OUR COMMITMENTS

Topic Commitments 2014 Compliance Commitments 2015 Highlights 2014 Clients Maintain ISO 9001:2008  Maintain ISO 9001:2008 We performed external monitoring audits in the lithium, certification for all of SQM's certification for all of SQM's iodine and nitrate business lines. certified operations. certified operations.

Obtain IFA Protect&Sustain certification in the potassium and nitrate business lines and for our operations at the Port of Tocopilla.

100% compliance with quality 100% compliance with We completed 75% of the scheduled internal audits but were programs, including internal quality programs, including unable to reach our goal of 100% for 2014. We completed auditing program and internal internal auditing program and 100% of the reinforcement plan for the Client Complaint specifications. Reinforce review of internal and client System and the Iodine-Lithium Complaint System. internal auditing and external specifications. complaint systems. Continue to provide  Continue to provide information Three iodine clients conducted audits and 36 technical / information (surveys, forms, (surveys, forms, etc.) requested regulatory questionnaires were completed in all business etc.) requested by clients in a by clients in a timely manner lines. timely manner and organize and organize plant visits when plant visits when necessary. necessary. Respond to compliance/  Respond to compliance/change/ In 2014, the agency made no REACH requests. Spanish change/update requests from update requests from European authorities audited the SQM-Vitas España/SQM Iberian plant European Chemicals Agency, Chemicals Agency, if any, and detected only minor violations. if any, regarding REACH regarding REACH products. products.

Continue to fully comply Continue to fully comply (100%) We updated the technical information for KNO3, NaNO3, (100%) with regulatory with regulatory program, LiOH and Li2CO3 pending submission to REACH and pending program, including updating including updating dossiers for SDS NPK Mexico. dossiers for REACH and SDS REACH and SDS NPK Mexico. NPK Mexico. Implement an automated system for preparing SDS.

Perform US/European regulatory compliance audits (labels, REACH, precursors, OSHA)

 Fulfilled

Partially Fulfilled

 Not Fulfilled Our Clients

Specialty plant nutrition is one of the five business lines in which SQM has distinguis- hed itself as a global industry leader. 132 / 133

6|Economic Performance TOGETHER, WE ARE MORE COMPETITIVE Economic Performance 134 / 135

La innovación, la alta calidad de sus recursos naturales, la disminución de los costos y la amplia red comercial le ha permitido a SQM mantener y profundizar el liderazgo mundial en cada uno de sus negocios.

hroughout its existence, SQM has by a Company-owned specialized international ›› Human capital. distinguished itself as a producer and commercial network. › Natural resources. seller of specialty plant nutrients, › › Distribution network. Tiodine and derivatives, lithium and derivatives, SQM’s development strategy aims to maintain › potassium and industrial chemicals. Its and strengthen its global leadership in each of ›› Operating assets. products are the result of innovation and high- its businesses. ›› Know-how and technology. quality natural resources that enable it to be a › Synergies from the variety of products it cost leader. These elements are complemented › SQM’s business is based on: manufactures and ongoing development efforts. ›› Sound financial position. Economic Performance

ECONOMIC PERFORMANCE

or the year 2014, SQM reported profits MARKET SHARE G4-4 / G4-8 of US$ 296.4 million, which represents a decrease over the same period in Business Line % Market Share of Each % of Company's Gross Margin F2013, when profits totaled US$ 467.1 million. Business Line Specialty plant nutrients 46% 25% In 2014, the Company was affected by a drop in iodine prices, which fell more than 20% over Iodine and derivatives 26% 24% 2013. Lithium and derivatives 27% 15%

Fertilizer markets evolved favorably in 2014. Industrial chemicals 50% 7% Global demand for potassium chloride is Potassium ~3% 28% estimated to have reached approximately 60 million tons, complemented by a slight recovery in prices in this market during the second half of 2014.

In the specialty plant nutrition business, sales volumes rose over 3%, while prices remained stable in comparison to 2013, thus leading to an increase in revenue in this business line. 136 / 137

SALES VOLUMES PER BUSINESS LINE

Sales Volumes per Business Line 2014 2013 2012 2014/2013

Specialty Plant Nutrition (by volume)

Sodium nitrate Mton 15.8 26.2 24.4 -10.4 -40%

Potassium nitrate and sodium potassi- Mton 531.6 512.6 469.3 19.0 4% um nitrate

Specialty mixtures Mton 228.0 208.1 197.5 19.9 10%

Other specialty fertilizers (*) Mton 102.5 100.8 89.0 1.6 2%

Iodine and Derivatives (by volume)

Iodine and derivatives Mton 8.8 9.3 11.0 -0.5 -5%

Lithium and Derivatives (by volume)

Lithium and derivatives Mton 39.5 36.1 45.7 -3.4 10%

Potassium (by volume)

Potassium chloride and potassium Mton 1,556.2 1,434.9 1,209.5 112.2 8% sulfate

Industrial Chemicals (by volume)

Industrial nitrates Mton 124.7 173.5 277.7 -48.8 -28%

Boric acid Mton 0.8 2.0 1.8 -1.2 -62%

(*) Includes principally sales of other specialty fertilizers Economic Performance

The investments made during 2014 were intended, among other objectives, to strengthen the Company’s leadership in Specialty Plant Nutrition.

As part of the Company’s metal exploration In 2014, capital investments totaled US$107 program for mining concessions in its name, million, related mainly to: it has entered into exploration partnerships through options contracts. These contracts give ›› Development of new extraction sectors SQM a minority interest in and/or royalties on and increased production of nitrates and sales of these metals. By the end of 2014, the iodine in Nueva Victoria. Company had 12 such contracts in force, two of ›› Investments to maintain and improve the which were signed during the last quarter of quality of finished nitrate products. 2014. The objective of these partnerships is for › Brine exploration and construction of the Company to invest a total of US$20 million › evaporation ponds to sustain long-term per year in exploration through existing and production in the Salar de Atacama. future collaborative projects. ›› Implementation of corporate ERP systems (SAP). 138 / 139

GENERATION AND DISTRIBUTION

OF ADDED VALUE G4-EC1

or over 40 years, SQM has generated GENERATION AND DISTRIBUTION OF COMPANY’S ADDED VALUE OVER economic resources for its diverse LAST THREE YEARS stakeholders and contributed to FChile’s economic and social development. Economic Value Generated 2014 2013 2012

Of the total economic value distributed in Sales 2,014,214 2,203,140 2,429,160 2014, ThUS$ 177,413 corresponds to wages and Finance income 15,641 12,328 22,138 benefits for SQM employees, ThUS$ 3,595.5 to community investments and ThUS$ 2,710 to Other non-operating income 1,349 87,683 17,079 environmental investments. a) Total income 2,031,204 2,303,151 2,468,378 Figures in ThUS$ The Company has received funds from the Chilean government in the form of tax credits and benefits, as an incentive and in Economic Value Distributed 2014 2013 2012 compensation for actions such as employee Operating expenses 1,198,978 1,496,212 1,363,696 training tax credits from the National Training and Employment Service (Sence) and tax Payments to providers of capital 692,636 543,171 621,129 benefits related to donations and mining Payments to government 103,123 122,702 262,327 licenses, among other items. Total Economic Value Distributed by SQM 1,994,737 2,162,085 2,247,152 Figures in ThUS$

Economic Value Retained 2014 2013 2012

Figures in ThUS$ 36,467 141,066* 221,226

* Corrected figure for economic value retained in 2013. Economic Performance

CONTRIBUTIONS FROM THE STATE (THUS$) G4-EC4

Contributions from the State 2014 2013 2012

Employee training tax credit (Sence) 1,035 1,200 1,269

Credits and donations 731 1,222 961

Mining license 31 52 57

Property, plant and equipment tax credit 138 196 168 CONTRIBUTIONS FROM THE Total in US$ 1,935 2,669 2,455 STATE Figures in ThUS$ 196 52 168 GENERATION AND DISTRIBUTION OF COMPANY’S 57 ADDED VALUE OVER LAST THREE YEARS 2,468,378

138 1222 961 2,247,152 31 2,303,151

2,031,204 2,162,085 731 1,994,737 1269 1200 1035

2014 2013 2012 221,226 36,467 141,066* Property, plant and equipment tax credit 2014 2013 2012 Mining license Economic value generated Credits and donations Economic value distributed Employee training tax Economic value retained credit (Sence) *Corrected figure for economic value retained in 2013. 140 / 141

OUR COMMITMENTS

Topic Commitments 2014 Compliance Commitments 2015 Highlights 2014 Investors Continue to provide sustained,  Supply long-term value to Thanks to increased productivity, reduced costs and long-term value to our our shareholders by using commercial strategies to face prevailing market scenarios, shareholders through major sustainability principles to the Company generated added value for our shareholders in investments in order to meet make decisions that maximize line with expectations. shareholder and market returns over time. expectations.

 Fulfilled

Partially Fulfilled

 Not Fulfilled Economic Performance

At SQM, we are committed to continual improvement in order to deliver the best pro- ducts to our clients and the best returns to our shareholders. 142 / 143

7|Material Aspects and GRI Indicators

TOGETHER, WE ARE MORE Material Aspects and GRI Indicators

As part of its ongoing improvement and compliance efforts, SQM has taken on the challenge of reporting for the first time under the most recent version of the Global Reporting Initiative Guidelines, known as GRI 4. This achieve- ment makes SQM one of the first Chilean companies to report under GRI 4. 144 / 145

MATERIAL ASPECTS

o prepare SQM’s Sustainability Report the Safety Culture Survey conducted by the ›› Female Workforce 2014, a committee of individuals Company between November 2014 and January from the areas of community affairs, 2015. ›› Safety Tenvironmental affairs, human resources and communications was formed to analyze topics The Company’s main milestones during 2014 ›› Contractors to be covered and aspects from prior editions were also selected as issues. It is important that could be improved. to note that data gathering for SQM’s ›› Nearby Communities Sustainability Report 2014 was completed in As part of the process of identifying material April 2015. During the first few months of 2015, ›› Education and Culture, Historical Heritage, aspects or internal or external matters of the Company faced some incidents of public Social Development economic, environmental and social impact knowledge that resulted in immediate changes for the organization, an extensive list of issues in its board of directors and management. ›› Environment was initially generated. From this list, we Given their importance, some of these matters then selected the most relevant issues, which were included in the first chapters of this ›› Waste themselves involve other matters. report even though they were not identified in the materiality assessment for 2014. ›› Raw Materials and Inputs This final selection was used to generate a materiality matrix, which is a graphic As a result of this process, we defined the ›› Energy representation of the priority sustainability following material aspects as priorities for issues for SQM. This matrix will be analyzed the Company. These aspects also consider ›› Air Emissions every two years. the characteristics of our industry and our operations: ›› Water The following sources were used to build the initial list of material issues: SQM’s ›› Corporate Governance ›› Clients Sustainability Report 2012, developed under GRI3; the stakeholder report assessment survey ›› Our products (specialty nutrients, iodine, ›› Service Quality conducted in 2013; SQM’s Sustainability Report lithium, potassium, industrial chemicals) 2013 under GRI 3.1; press appearances between ›› Financial Results January 1, 2014 and December 31, 2014, which ›› Innovation include the main issues covered by national ›› Shareholders and regional media outlets. We also considered ›› Human Resources recurring or frequently appearing topics from Material Aspects and GRI Indicators

MATERIALITY

HIGH

20

HUMAN RESOURCES 18 WATER

FEMALE WORKFORCE 16 NEARBY COMMUNITIES EDUCATION AND CULTURE, HISTORICAL HERITAGE, SOCIAL DEVELOPMENT 14 ENVIRONMENT

WASTE

12 CONTRACTORS

SAFETY

10 RAW MATERIALS AND INPUTS

External ENERGY

8 CLIENTS

SERVICE OUR QUALITY PRODUCTS 6 FINANCIAL RESULTS

SHAREHOLDERS

4 CORPORATE GOVERNANCE

2 AIR EMISSIONS

INNOVATION 0 0 2 4 6 8 10 12 14 16 18 20 Internal LOW HIGH 146 / 147

GRI INDICATORS

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Provide a statement from the most senior decision-maker of the organization (such as CEO, chair, or General Standard Strategy and Analysis G4-1 equivalent senior position) about CEO's Letter No 4 Disclosures the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability.

General Standard Organizational Profile G4-3 Report the name of the organization. SQM No 16 Disclosures

General Standard Report the primary brands, products, SQM - Economic 40, 41, Organizational Profile G4-4 No Disclosures and services. Performance 135

General Standard Report the location of the organization’s Organizational Profile G4-5 SQM No 36, 37 Disclosures headquarters.

Report the number of countries where the organization operates, and names of General Standard countries where either the organization Organizational Profile G4-6 SQM No 36, 37 Disclosures has significant operations or that are specifically relevant to the sustainability topics covered in the report.

Audited by General Standard Report the nature of ownership and Organizational Profile G4-7 SQM PWC for 30, 31 Disclosures legal form. Annual Report

Report the markets served (including General Standard geographic breakdown, sectors SQM - Economic 36, 37, Organizational Profile G4-8 No Disclosures served, and types of customers and Performance 135 beneficiaries). Material Aspects and GRI Indicators

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Report the scale of the organization, including:Ÿ total number of employees; total number of operations; net sales Aspects of (for private sector organizations) this indicator 36, General Standard or net revenues (for public sector SQM - Our People - are included 45, Organizational Profile G4-9 Disclosures organizations), total capitalization Economic Performance in the Annual 136, broken down in terms of debt and Report audited 138 equity (for private sector organizations); by PWC and quantity of products or services provided.

a. Report the total number of employees by employment contract and gender.

b. Report the total number of permanent employees by employment type and gender.

c. Report the total workforce by employees and supervised workers and by gender.

d. Report the total workforce by region 45, General Standard and gender. Organizational Profile G4-10 Our People No 46, Disclosures 66, 67 e. Report whether a substantial portion of the organization’s work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors.

f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries).

Report the percentage of total General Standard Organizational Profile G4-11 employees covered by collective Our People No 49 Disclosures bargaining agreements.

General Standard Describe the organization’s supply Organizational Profile G4-12 Our People No 66-69 Disclosures chain. 148 / 149

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain, including:

- Changes in the location of, or changes in, operations, including facility openings, closings, and expansions; General Standard 21, Organizational Profile G4-13 SQM No Disclosures - Changes in the share capital 24-31 structure and other capital formation, maintenance, and alteration operations (for private sector organizations); and

- Changes in the location of suppliers, the structure of the supply chain, or in relationships with suppliers, including selection and termination.

Report whether and how the General Standard Organizational Profile G4-14 precautionary approach or principle is SQM No 33 Disclosures addressed by the organization.

List externally developed economic, 32, environmental and social charters, SQM - Our Neighbors General Standard 35, 41, Organizational Profile G4-15 principles, or other initiatives to which - Environmental No Disclosures 74-89, the organization subscribes or which it Commitment 94-117 endorses. Material Aspects and GRI Indicators

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

a. List memberships of associations (such as industry associations) and national or international advocacy

organizations in which the organization:

- Holds a position on the governance body; General Standard Organizational Profile G4-16 About this Report No 10, 11 Disclosures - Participates in projects or committees;

- Provides substantive funding beyond routine membership dues;

- Views membership as strategic. This refers primarily to memberships maintained at the organizational level.

a. List all entities included in the organization’s consolidated financial statements or equivalent documents.

b. Report whether any entity included in the organization’s consolidated Audited by General Standard Material Aspects G4-17 financial statements or equivalent SQM PWC for 30, 31 Disclosures and Boundaries documents is not covered by the report. Annual Report The organization can report on this Standard Disclosure by referencing the information in publicly available consolidated financial statements or equivalent documents.

a. Explain the process for defining the report content and the Aspect Boundaries. General Standard Material Aspects G4-18 Material Aspects No 144 Disclosures and Boundaries b. Explain how the organization has implemented the Reporting Principles for Defining Report Content.

General Standard Material Aspects List all the material Aspects identified in 144, G4-19 Material Aspects No Disclosures and Boundaries the process for defining report content. 145 150 / 151

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

For each material Aspect, report the Aspect Boundary within the organization, as follows:

- Report whether the Aspect is material within the organization

- If the Aspect is not material for all entities within the organization (as described in G4-17), select one of the following two approaches and report either: General Standard Material Aspects 144, G4-20 Material Aspects No Disclosures and Boundaries –– The list of entities or groups of 145 entities included in G4-17 for which the Aspect is not material or

–– The list of entities or groups of entities included in G4-17 for which the Aspects is material.

- Report any specific limitation regarding the Aspect Boundary within the organization.

For each material Aspect, report the Aspect Boundary outside the organization, as follows:

- Report whether the Aspect is material outside of the organization

- If the Aspect is material outside of the organization, identify the entities, General Standard Material Aspects 144, G4-21 groups of entities or elements for which Material Aspects No Disclosures and Boundaries 145 the Aspect is material.

- In addition, describe the geographical location where the Aspect is material for the entities identified.

- Report any specific limitation regarding the Aspect Boundary outside the organization. Material Aspects and GRI Indicators

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Report the effect of any restatements of No information was General Standard Material Aspects G4-22 information provided in previous reports, restated. Change No - Disclosures and Boundaries and the reasons for such restatement. from G3.1 to G4

Report significant changes from There were no changes General Standard Material Aspects G4-23 previous reporting periods in the Scope in Scope or Boundaries. No - Disclosures and Boundaries and Aspect Boundaries. Change from G3.1 to G4

General Standard Provide a list of stakeholder groups Stakeholder Engagement G4-24 About this Report No 9 Disclosures engaged by the organization.

Report the basis for identification and General Standard Stakeholder Engagement G4-25 selection of stakeholders with whom to About this Report No 9 Disclosures engage.

Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and General Standard About this Report - 9, 144, Stakeholder Engagement G4-26 by stakeholder group, and an indication No Disclosures Material Aspects 145 of whether any of the engagement was undertaken specifically as part of the report preparation process.

Report key topics and concerns that have been raised through stakeholder engagement, and how the organization General Standard has responded to those key topics Stakeholder Engagement G4-27 Material Aspects No 9 Disclosures and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.

General Standard Reporting period (such as fiscal or Report Profile G4-28 About this Report No 6 Disclosures calendar year) for information provided.

General Standard Date of most recent previous report (if Report Profile G4-29 About this Report No 6 Disclosures any).

General Standard Report Profile G4-30 Reporting cycle (annual, biennial, etc.) About this Report No 6 Disclosures

General Standard Provide the contact point for questions Report Profile G4-31 About this Report No 6 Disclosures regarding the report or its contents. 152 / 153

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

a. Report the ‘in accordance’ option the organization has chosen.

b. Report the GRI Content Index for the chosen option (see tables below). 6, General Standard Report Profile G4-32 About this Report No 146- Disclosures c. Report the reference to the External 165 Assurance Report, if the report has been externally assured. GRI recommends the use of external assurance but it is not a requirement to be ‘in accordance’ with the Guidelines.

a. Report the organization’s policy and current practice with regard to seeking external assurance for the report.

b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided. General Standard Report Profile G4-33 About this Report No 6 Disclosures c. Report the relationship between the organization and the assurance providers.

d. Report whether the highest governance body or senior executives are involved in seeking assurance for the organization’s sustainability report.

Report the governance structure of the organization, including committees General Standard of the highest governance body. Governance G4-34 SQM No 23-29 Disclosures Identify any committees responsible for decision-making on economic, environmental and social impacts.

Report the process for delegating authority for economic, environmental General Standard Governance G4-35 and social topics from the highest SQM No 24-29 Disclosures governance body to senior executives and other employees. Material Aspects and GRI Indicators

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Report whether the organization has appointed an executive-level position General Standard or positions with responsibility for Governance G4-36 SQM No 24-29 Disclosures economic, environmental and social topics, and whether post holders report directly to the highest governance body.

Describe the organization’s values, 22, 23, General Standard principles, standards and norms of Governance G4-56 SQM No 32, 33, Disclosures behavior such as codes of conduct and 34, 35 codes of ethics.

Audited by Specific Standard Economic: Economic Direct economic value generated and 138, G4-EC1 Economic Performance PWC for Disclosures Performance distributed. 139 Annual Report

Financial implications and other risks Specific Standard Economic: Economic G4-EC2 and opportunities for the organization’s SQM No 24, 25 Disclosures Performance activities due to climate change.

Specific Standard Economic: Economic Coverage of the organization’s defined G4-EC3 Our People No 49-51 Disclosures Performance benefit plan obligations.

Audited by Specific Standard Economic: Economic Financial assistance received from G4-EC4 Economic Performance PWC for 139 Disclosures Performance government. Annual Report

Proportion of senior management hired Specific Standard Economic: Market Presence G4-EC6 from the local community at significant Our People No 45 Disclosures locations of operation.

Development and impact of 50, Specific Standard Economic: Indirect G4-EC7 infrastructure investments and services Our People No 51, Disclosures Economic Impacts supported. 74-89

Specific Standard Economic: Indirect Significant indirect economic impacts, Our People - Our G4-EC8 No 50, 51 Disclosures Economic Impacts including the extent of impacts. Neighbors

Specific Standard Economic: Procurement Proportion of spending on local suppliers 108, G4-EC9 Our People No Disclosures Practices at significant locations of operation. 109

106, Specific Standard Environmental 107, Environmental: Materials G4-EN1 Materials used by weight or volume. No Disclosures Commitment 114, 115 154 / 155

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Specific Standard Percentage of materials used that are Environmental 110, Environmental: Materials G4-EN2 Disclosures recycled input materials. Commitment 111

Specific Standard Energy consumption within the Environmental 110, Environmental: Energy G4-EN3 No Disclosures organization. Commitment 111

Specific Standard Energy consumption outside of the Environmental 110, Environmental: Energy G4-EN4 No Disclosures organization. Commitment 111

Specific Standard Environmental 110, Environmental: Energy G4-EN6 Reduction of energy consumption. No Disclosures Commitment 111

Specific Standard Environmental 114, Environmental: Water G4-EN8 Total water withdrawal by source. No Disclosures Commitment 115

Specific Standard Water sources significantly affected by Environmental 114, Environmental: Water G4-EN9 No Disclosures withdrawal of water. Commitment 115

Specific Standard Percentage and total volume of water Environmental 114, Environmental: Water G4-EN10 No Disclosures recycled and reused. Commitment 115

Operational sites owned, leased, Specific Standard managed in, or adjacent to, protected Environmental Environmental: Biodiversity G4-EN11 No 96, 97 Disclosures areas and areas of high biodiversity Commitment value outside protected areas.

Description of significant impacts of activities, products, and services on Specific Standard Environmental Environmental: Biodiversity G4-EN12 biodiversity in protected areas and No 96, 97 Disclosures Commitment areas of high biodiversity value outside protected areas.

Specific Standard Environmental Environmental: Biodiversity G4-EN13 Habitats protected or restored. No 96, 97 Disclosures Commitment

Total number of IUCN Red List species 100, Specific Standard and national conservation list species Environmental 101, Environmental: Biodiversity G4-EN14 No Disclosures with habitats in areas affected by Commitment 102, operations, by level of extinction risk. 103

Specific Standard Direct greenhouse gas (GHG) emissions Environmental 112, Environmental: Emissions G4-EN15 No Disclosures (scope 1). Commitment 113

Specific Standard Energy indirect greenhouse gas (GHG) Environmental 112, Environmental: Emissions G4-EN16 No Disclosures emissions (scope 2). Commitment 113 Material Aspects and GRI Indicators

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Specific Standard Other indirect greenhouse gas (GHG) Environmental 112, Environmental: Emissions G4-EN17 No Disclosures emissions (scope 3). Commitment 113

Specific Standard Reduction of greenhouse gas (GHG) Environmental 112, Environmental: Emissions G4-EN19 No Disclosures emissions. Commitment 113

Specific Standard Emissions of ozone-depleting Environmental 112, Environmental: Emissions G4-EN20 No Disclosures substances (ODS). Commitment 113

Specific Standard Environmental: Total water discharge by quality and Environmental 106, G4-EN22 No Disclosures Effluents and Waste destination. Commitment 107

Specific Standard Environmental: Total weight of waste by type and Environmental 106, G4-EN23 No Disclosures Effluents and Waste disposal method. Commitment 107

Specific Standard Environmental: Total number and volume of significant Environmental 106, G4-EN24 No Disclosures Effluents and Waste spills. Commitment 107

Weight of transported, imported, exported, or treated waste deemed Specific Standard Environmental: hazardous under the terms of the Basel Environmental 106, G4-EN25 No Disclosures Effluents and Waste Convention Annex I, II, III, and VIII, Commitment 107 and percentage of transported waste shipped internationally.

Identity, size, protected status, and biodiversity value of water bodies and Specific Standard Environmental: Environmental 106, G4-EN26 related habitats significantly affected No Disclosures Effluents and Waste Commitment 107 by the organization’s discharges of water and runoff.

Extent of impact mitigation of Specific Standard Environmental: Products Environmental G4-EN27 environmental impacts of products and No 95-117 Disclosures and Services Commitment services.

Percentage of products sold and their Specific Standard Environmental: Products Environmental 106, G4-EN28 packaging materials that are reclaimed No Disclosures and Services Commitment 107 by category.

Monetary value of significant fines and Specific Standard total number of non-monetary sanctions Environmental Environmental: Compliance G4-EN29 No 95 Disclosures for non-compliance with environmental Commitment laws and regulations. 156 / 157

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Significant environmental impacts of transporting products and other goods Specific Standard Environmental Environmental: Transport G4-EN30 and materials used for the organization’s No 108 Disclosures Commitment operations, and transporting members of the workforce.

50, Specific Standard Total environmental protection Environmental Environmental: Overall G4-EN31 No 116, Disclosures expenditures and investments by type. Commitment 117

SQM does not consider Specific Standard Environmental: Supplier Percentage of new suppliers that were G4-EN32 environmental criteria in No - Disclosures Environmental Assessment screened using environmental criteria. screening new suppliers.

Significant actual and potential negative SQM does not consider Specific Standard Environmental: Supplier G4-EN33 environmental impacts in the supply environmental criteria in No - Disclosures Environmental Assessment chain and actions taken. screening new suppliers.

Number of grievances about Environmental: Specific Standard environmental impacts filed, addressed, Environmental Environmental Grievance G4-EN34 No 95 Disclosures and resolved through formal grievance Commitment Mechanisms mechanisms.

Total number and percentage of SQM does not have any significant investment agreements and Specific Standard contracts or agreements Human Rights: Investment G4-HR1 contracts that include human rights No - Disclosures that include human clauses or that underwent human rights rights clauses. screening.

Total hours of employee training on SQM does not have human rights policies or procedures Specific Standard any training programs Human Rights: Investment G4-HR2 concerning aspects of human rights that No - Disclosures or courses on human are relevant to operations, including the rights matters. percentage of employees trained.

Total number of incidents of Specific Standard Human Rights: Non- G4-HR3 discrimination and corrective actions Our People No 49 Disclosures discrimination taken.

Operations and suppliers identified in which the right to exercise freedom of Human Rights: Freedom Specific Standard association and collective bargaining of Association and G4-HR4 Our People No 49 Disclosures may be violated or at significant risk, Collective Bargaining and measures taken to support these rights. Material Aspects and GRI Indicators

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Operations and suppliers identified as SQM has not identified having significant risk for incidents Specific Standard any operations or Human Rights: Child Labor G4-HR5 of child labor, and measures taken to No - Disclosures suppliers at risk for contribute to the effective abolition of incidents of child labor. child labor.

Operations and suppliers identified as having significant risk for incidents Specific Standard Human Rights: Forced of forced or compulsory labor, and G4-HR6 Our People No 49 Disclosures or Compulsory Labor measures to contribute to the elimination of all forms of forced or compulsory labor.

Percentage of security personnel trained SQM has not conducted Specific Standard Human Rights: in the organization’s human rights G4-HR7 any training on human No - Disclosures Security Practices policies or procedures that are relevant rights matters. to operations.

SQM did not record any Total number of incidents of violations Specific Standard Human Rights: incidents of violations G4-HR8 involving rights of indigenous people No - Disclosures Indigenous Rights involving rights of and actions taken. indigenous people in 2014.

Total number and percentage of SQM has not performed Specific Standard operations that have been subject Human Rights: Assessment G4-HR9 this type of review No - Disclosures to human rights reviews or impact or assessment. assessments.

SQM has not performed Specific Standard Human Rights: Supplier Percentage of new suppliers that were G4-HR10 this type of review No - Disclosures Human Rights Assessment screened using human rights criteria. or assessment.

Significant actual and potential SQM has not performed Specific Standard Human Rights: Supplier G4-HR11 negative human rights impacts in the this type of review No - Disclosures Human Rights Assessment supply chain and actions taken. or assessment.

Total number and rates of new employee Specific Standard Labor Practices and Decent G4-LA1 hires and employee turnover by age Our People No 48 Disclosures Work Employment group, gender and region.

Benefits provided to full-time employees Specific Standard Labor Practices and Decent that are not provided to temporary or G4-LA2 Our People No 50 Disclosures Work: Employment part-time employees, by significant locations of operation. 158 / 159

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Specific Standard Labor Practices and Decent Return to work and retention rates after G4-LA3 Our People No 48 Disclosures Work: Employment parental leave, by gender.

Minimum notice periods regarding Labor Practices and Specific Standard operational changes, including whether Decent Work: Labor/ G4-LA4 Our People No 49 Disclosures these are specified in collective Management Relations agreements.

Percentage of total workforce represented in formal joint Labor Practices and Specific Standard management-worker health and safety Decent Work: Occupational G4-LA5 Our People No 62 Disclosures committees that help monitor and Health and Safety advise on occupational health and safety programs.

Type of injury and rates of injury, Labor Practices and Specific Standard occupational diseases, lost days, and Decent Work: Occupational G4-LA6 Our People No 62 Disclosures absenteeism, and total number of work- Health and Safety related fatalities, by region and gender.

Labor Practices and Specific Standard Workers with high incidence or high risk Decent Work: Occupational G4-LA7 Our People No 61 Disclosures of diseases related to their occupation. Health and Safety

Labor Practices and Specific Standard Health and safety topics covered in Decent Work: Occupational G4-LA8 Our People No 49 Disclosures formal agreements with trade unions. Health and Safety

Average hours of training per year per Specific Standard Labor Practices and Decent G4-LA9 employee by gender, and by employee Our People No 54-56 Disclosures Work: Training and Education category.

Programs for skills management and lifelong learning that support the Specific Standard Labor Practices and Decent G4-LA10 continued employability of employees Our People No 52 Disclosures Work: Training and Education and assist them in managing career endings. Material Aspects and GRI Indicators

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Percentage of employees receiving Specific Standard Labor Practices and Decent regular performance and career G4-LA11 Our People No 54-58 Disclosures Work: Training and Education development reviews, by gender and by employee category.

Composition of governance bodies and Labor Practices and breakdown of employees per employee Specific Standard Decent Work: Diversity G4-LA12 category according to gender, age Our People No 54 Disclosures and Equal Opportunity group, minority group membership, and other indicators of diversity.

Labor Practices and Decent Ratio of basic salary and remuneration Specific Standard Work: Equal Remuneration G4-LA13 of women to men by employee category, Our People No 48 Disclosures for Women and Men by significant locations of operation.

Labor Practices and Decent Specific Standard Percentage of new suppliers that were Work: Supplier Assessment G4-LA14 Our People No 66 Disclosures screened using labor practices criteria. for Labor Practices

Labor Practices and Decent Significant actual and potential negative Specific Standard Work: Supplier Assessment G4-LA15 impacts for labor practices in the supply Our People No 66, 67 Disclosures for Labor Practices chain and actions taken.

Number of grievances about labor Labor Practices and Decent Specific Standard practices impacts filed, addressed, Work: Labor Practices G4-LA16 SQM has a Code of Ethics. No - Disclosures and resolved through formal grievance Grievance Mechanisms mechanisms.

Percentage of significant product and Specific Standard Product Responsibility: service categories for which health G4-PR1 Our Clients No 126 Disclosures Customer Health and Safety and safety impacts are assessed for improvement. 160 / 161

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Total number of incidents of non- compliance with regulations and Specific Standard Product Responsibility: voluntary codes concerning health G4-PR2 Our Clients No 126 Disclosures Customer Health and Safety and safety impacts of products and services during their life cycle, by type of outcomes.

100% of the Company's products are subject to corporate labeling requirements (GLC-I001-01) and packaging artwork updating procedures (GLC-P001-01). The first standard provides guidelines for all packaging and shipping Type of product and service information units for products sold by required by the organization's procedures the Company, including: Specific Standard Product Responsibility: for product and service information and G4-PR3 identification (generic/ No - Disclosures Product and Service Labeling labeling, and percentage of significant commercial name), product and service categories subject IMDG and GHS coding to such information requirements. requirements and special client requirements. The procedure for updating packaging artwork includes the product origin designation, other regulatory and commercial requirements and safety instructions regarding the product's life cycle. Material Aspects and GRI Indicators

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Total number of incidents of non- compliance with regulations and Specific Standard Product Responsibility: G4-PR4 voluntary codes concerning product and Our Clients No 126 Disclosures Product and Service Labeling service information and labeling, by type of outcomes.

Specific Standard Product Responsibility: Results of surveys measuring customer G4-PR5 Our Clients No 123 Disclosures Product and Service Labeling satisfaction.

Specific Standard Product Responsibility: G4-PR6 Sale of banned or disputed products. Our Clients No 126 Disclosures Marketing Communications

Total number of incidents of non- compliance with regulations and Specific Standard Product Responsibility: voluntary codes concerning marketing G4-PR7 Our Clients No 126 Disclosures Marketing Communications communications, including advertising, promotion, and sponsorship, by type of outcomes.

In 2014, SQM did not Total number of substantiated report any substantiated Specific Standard Product Responsibility: complaints regarding breaches of complaints regarding G4-PR8 No - Disclosures Customer Privacy. customer privacy and losses of customer breaches of customer data. privacy and losses of customer data.

In 2014, SQM did not report any significant Monetary value of significant fines fines for non-compliance Specific Standard Product Responsibility: for non-compliance with laws and G4-PR9 with laws and regulations No - Disclosures Compliance regulations concerning the provision concerning the provision and use of products and services. and use of products and services. 162 / 163

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Percentage of operations with Specific Standard implemented local community Society: Local Communities G4-SO1 Our Neighbors No 75 Disclosures engagement, impact assessments, and development programs.

Operations with significant actual and Specific Standard Society: Local Communities G4-SO2 potential negative impacts on local Our Neighbors No 75 Disclosures communities.

Total number and percentage of SQM performs Specific Standard operations assessed for risks related Society: Anti-corruption G4-SO3 assessments at all No - Disclosures to corruption and the significant risks production sites. identified.

Specific Standard Communication and training on anti- Society: Anti-corruption G4-SO4 SQM has a Code of Ethics. No - Disclosures corruption policies and procedures.

SQM contributed Specific Standard Total value of political contributions by Society: Public Policy G4-SO6 US$80,375 to the Chilean No - Disclosures country and recipient/beneficiary. Electoral Service.

Monetary value of significant fines and As reported in SQM's Specific Standard total number of non-monetary sanctions Sustainability Report Society: Compliance G4-SO8 No - Disclosures for non-compliance with laws and 2014, this matter regulations. is not material.

SQM considers these aspects for all suppliers that begin supplying Percentage of new suppliers that were goods and services, Specific Standard Society: Supplier Assessment G4-SO9 screened using criteria for impacts on measuring aspects No - Disclosures for Impacts on Society society. such as compliance with current laws and conducting technical visits to suppliers. Material Aspects and GRI Indicators

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Significant actual and potential negative SQM does not assess Specific Standard Society: Supplier Assessment G4-SO10 impacts on society in the supply chain the social impact of No - Disclosures for Impacts on Society and actions taken. its supply chain.

Society: Grievance Number of grievances about impacts on SQM has not reported Specific Standard Mechanisms for G4-SO11 society filed, addressed, and resolved any grievances about No - Disclosures Impacts on Society through formal grievance mechanisms. impacts on society.

Amount of land (owned or leased, and Environmental Mining and Metals Environmental: Biodiversity G4-MM1 managed for production activities or Commitment - No - Supplement extractive use) disturbed or rehabilitated Biodiversity

The number and percentage of total During 2014, SQM did sites identified as requiring biodiversity Mining and Metals not engage in any soil Environmental: Biodiversity G4-MM2 management plans according to stated No - Supplement rehabilitation activities criteria, and the number (percentage) of at its operations. those sites with plans in place.

Management of large- volume mining waste is focused mainly on ensuring the safety Total amounts of overburden, rock, Mining and Metals Environmental: of the deposits and G4-MM3 tailings, and sludges and their No - Supplement Effluents and Waste encouraging, when associated risks feasible, reuse and recycling as it does not present any risk to human health.

Labor Practices and Number of strikes and lock-outs Mining and Metals There were no strikes or Decent Work: Labor/ G4-MM4 exceeding one week's duration, by No - Supplement lock-outs at SQM in 2014. Management Relations country 164 / 165

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

In the Antofagasta and Tarapacá regions, SQM's Total number of operations taking place production facilities in or adjacent to Indigenous Peoples' coexist with Atacameña Mining and Metals Human Rights: territories, and number and percentage G4-MM5 and Aymara indigenous No - Supplement Indigenous Rights. of operations or sites where there are communities. The formal agreements with Indigenous Company has maintained Peoples' communities. good neighbor relations with these communities.

In the Antofagasta and Tarapacá regions, SQM's production facilities Number and description of significant coexist with Atacameña Mining and Metals disputes relating to land use, customary Society: Local Communities G4-MM6 and Aymara indigenous No - Supplement rights of local communities and communities. The Indigenous Peoples. Company has maintained good neighbor relations with these communities.

The extent to which grievance mechanisms were used to resolve In 2014, there were no Mining and Metals Society: Local Communities G4-MM7 disputes relating to land use, customary incidents of disputes No - Supplement rights of local communities and relating to land use. Indigenous Peoples, and the outcomes. Material Aspects and GRI Indicators

GRI External Sustainability Area GRI Aspect Indicator Location or Comment Page Code Verification

Number (and percentage) of company operating sites where artisanal and As reported in SQM's Mining and Metals Artisanal and Small- small-scale mining (ASM) takes place on, Sustainability Report G4-MM8 No - Supplement scale Mining or adjacent to, the site; the associated 2014, this matter risks and the actions taken to manage is not material. and mitigate these risks.

Sites where resettlements took place, SQM has not carried out Mining and Metals the number of households resettled in any closures resulting Resettlement G4-MM9 No - Supplement each, and how their livelihoods were in resettlements of affected in the process communities.

All of SQM's production Mining and Metals G4- Number and percentage of operations Closure Planning facilities have regulator- No 95 Supplement MM10 with closure plans. approved closure plans.

As reported in SQM's Mining and Metals Programs and progress relating to Sustainability Report Materials Stewardship G4-MM11 No - Supplement materials stewardship. 2014, this matter is not material. 166 / 167

OUR ACCOLADES

James’s flamingo (Phoenicoparrus jamesi), Salar de Atacama – Chaxa Tourism Center. Material Aspects and GRI Indicators

›› The Chilean Safety Association (ACHS) honored SQM as one of 10 private-sector ACHS member companies with the most training hours in 2012-2013. The Company, considered by ACHS to be a top training organization in Chile, organized courses for 3,528 employees on safety and occupational health matters.

›› Sernageomin recognized the subsidiary SQM Industrial for its low accident frequency index at all operating facilities based on its severity index and over 200,000 work hours.

›› The Parents’ Association at Tocopilla’s Colegio Sagrada Familia showed its appreciation for SQM’s donations of instruments and equipment to the school’s youth orchestra.

›› The Hijos de Pedro de Valdivia Center honored SQM for its support of the organization’s anniversary celebration. ›› The organizing committee for the “Fiesta de Quillagua” festival recognized SQM’s sponsorship of activities to honor its patron saint, San Miguel Arcángel.

›› The Municipality of Tocopilla expressed its appreciation for SQM’s support of the town’s anniversary activities. ›› The Municipality of San Pedro de Atacama recognized SQM’s contribution to the festivities for the town’s XXXIV anniversary. ›› The Hijos del Salitre Foundation honored SQM for the support provided to help preserve the Pampina Church in Iquique. ›› The Municipality of Pozo Almonte recognized SQM as part of its 43rd anniversary celebration for its ongoing support of the town’s activities. Design: BAOBAB Diseño

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