Sustainability Report 20 19 2019 Disclosure 102

Home , Antofagasta Region, Calichera, Pozo Almonte, San Pedro de Atacama, Tamarugo conebill, Toconao

SUSTAINABILITY REPORT 20 19 2019 DISCLOSURE 102 – 7

WE REACH 12,685 Environmental Authorizations JOBS IN CHILE AND 110 62 20 SQM Workforce THE WORLD COUNTRIES Commercial 5,741 AROUND THE Offices WORLD

GHG Intensity Specialty plant Community (Scope 1 and 2) nutrition Investments TON CO eq/MUS$ 2 27% ThUS$5,256 339 WOMEN Lithium and Iodine and MAKE UP derivatives derivatives 36% Water 25% Solar Power Consumption 91.1% 16.4% 32.8 Mm3 OF EMPLOYEES Safety, IN CHILE AND ThUS$1,943,655 Integrity, TOTAL Excellence Industrial THE WORLD chemicals ANNUAL Energy Potassium 6% Intensity Lost-time Injury SALES 6% Frequency Rate 2.98 TJ/MUS$ 1.20 FOR WORKFORCE IN TARAPACÁ AND ANTOFAGASTA REGIONS + 2,000 Turnover 62.7% Suppliers 13.7 OF EMPLOYEES ARE 3 LOCAL AND 1.3Mm OF WASTE CALICHE ORE - BRINES 84.8% WATER OF EXECUTIVES LIVE IN IS REUSED NOTE: % expressed for product lines is their contribution to the Company’s gross margin. THE REGION International System prefixes are used throughout this report, with the exception of ThUS$ = thousands of US dollars and MUS$ = millions of US dollars. Cover photo: Lithium ponds, Salar de Atacama, Antofagasta Region.

2 3 01. OUR COMPANY IN 2019 12. SQM, PRESENT IN THE COMMUNITY Index PAGE 07 PAGE 257 02. MATERIALITY 13. ATACAMA TIERRA FÉRTIL PROGRAM

PAGE 13 PAGE 269

03. SQM, FROM CHILE TO THE WORLD 14. FOSTERING PRODUCTION DEVELOPMENT

PAGE 25 PAGE 285

04. VALUE GENERATED 15. FURTHERING COMMUNITY DEVELOPMENT

PAGE 71 PAGE 297

05. CORPORATE GOVERNANCE 16. “LEND A HAND TO YOUR COMMUNITY” SQM CORPORATE VOLUNTEER PROGRAM PAGE 85 PAGE 317 06. OUR VALUES 17. HEALTHIER LIVING, SQM IN THE COMMUNITY PAGE107 PAGE 329 07. OUR PEOPLE 18. REVIVING OUR PAST AND CULTURE PAGE 133 PAGE 337 08. PARTICIPATION AND INCLUSIVENESS 19. STAKEHOLDER INSTITUTIONS AND FOUNDATIONS PAGE 145 PAGE 347 09. SAFETY, ONE OF OUR VALUES 20. ASSURANCE LETTER PAGE 177 PAGE 357 10. VALUE CHAIN 21. GRI CONTENT INDEX PAGE201 PAGE 361 11. COMMITTED TO THE ENVIRONMENT

PAGE 211

4 5 01

Our Company in 2019

6 7 A WORD FROM We are a Chilean company leading in demanding international THE CEO DISCLOSURE 102-14/ 102-15 markets. Our ability to meet these standards is only possible through our commitment to sustainability.

We also released our Diversity and Regarding production, we plant in the Middle East that will Inclusiveness Policy. Launched boosted our lithium carbonate require 400,000 tons starting by our People department back installed capacity and, in 2020. In addition, in 2019 we in 2018 as a means to instill accordingly, we expect to bring supplied all the solar salts for an organization-wide working production up to 120,000 tons by Cerro Dominador—the first solar culture of non-discrimination mid-2021 through this 50,000- thermal power plant in Chile and inherent to the corporation, this ton increase. the largest in all of Latin America. policy reflects how SQM is a global company composed of In 2019, we hit a record high in Moreover, our Coya Sur operations multidisciplinary teams. Along equivalent lithium carbonate in the Antofagasta Region hit a

these same lines, in 2019 we exports. Additionally, we record in KNO3 production at its added new talent to our ranks, successfully shipped 14,000 NPT3 and atmospheric plants. bringing our female workforce up tons of lithium to China, which RICARDO RAMOS RODRIGUEZ to 16.4%. is quite a milestone considering In the iodine market, our sales CHIEF EXECUTIVE OFFICER that China is the leading country volumes have outpaced our Regarding production, *our Lean in electromobility and the production capacity in recent Sustainability is essential to SQM, where we believe that using resources responsibly and contributing methodology-based operational development of technological years, which brought about actively and conscientiously to society must go hand in hand with our activities. efficiency system—known as M1 products. a drop in inventory that has at SQM—has also come of age, made it possible for us to regain Preparing the annual Sustainability Report is an important exercise through which we connect with our and the challenge now lies in We believe in the future of solar market share. We are currently stakeholders, in addition to being a key management and transparency practice for our organization. focusing M1 implementation on salts and market growth for this in the early stages of expanding those areas we wish to drive*. One product. As a result, in November our production capacity to In keeping with this approach, in 2019 we took steps to reinforce this commitment by opting for external of these areas is risk prevention, we began operations at a new meet future demand. Relative report assurance for the first time in order to enhance its quality and guarantee the transparency of the where we seek to identify plant at our Coya Sur site which to this issue, we are waiting information contained herein. opportunities for improvement. will begin producing nitrates for the regulator to issue the Unfortunately, in 2019 we were that are earmarked to meet not environmental permit for our Under this approach we have updated our Sustainability Development Policy and obtained several unable to lower our operational only the demand for specialty Nueva Victoria site, specifically environmental certifications. The most noteworthy was the Responsible Care certification for our Nueva risk rate, reporting a Lost Time plant nutrients but also growing for the “Tente en el Aire” project, Victoria site, effective until 2022. In addition, we made progress on our “Green Lithium” project on the basis Injury Frequency Rate (LTIFR) of global demand for solar salts. requested in 2018. With this in of the sound conviction that sustainability must be at the core of our actions. 1.2 for the year. The message is This new operational capacity will place, we will be in a position to clear: zero accidents continues provide us with enough product increase production of iodine and to be our target. to successfully supply a large- nitrate salts by using sea water in scale concentrating solar power our heap leaching process. This

8 9 is essential to our sustainable We also began consolidating The year 2019 was marked by development goals. our economic contribution, as plenty of challenges for our pledged under an agreement Company and the country, Regarding communities, in signed with CORFO. This involves putting our abilities to the test. collaboration with the Pozo providing resources to the We continue to closely monitor Almonte Municipality we officially Antofagasta Regional Government the recent and future impacts opened the Pozo Almonte and the municipalities of María of what is occurring in Chile, Agriculture and Livestock Elena and San Pedro de Atacama, and, as always, our priority has Research and Development plus contributions to the San been the safety and wellbeing Center. The 1,150 m2 building Pedro de Atacama communities of our people, contractors and is divided into two spaces, one earmarked for investment neighboring communities. for farming hydroponic lettuce projects and fostering sustainable and conducting research and development as well as the We are fully committed to another with equipment for Antofagasta Center for R&D in continue working toward and manufacturing specialty goat Clean Technologies. SQM’s total on sustainable development in cheese. Training has already been contribution in 2019 amounted 2020 for our communities in provided to herders and farmers to US$37,968,557 that are being order to support their progress. in line with the project’s objective disbursed as mandated by the We are optimistic in terms of the of being a pilot farming training agreement. social challenges facing Chile facility. and, as a company, we will direct *During the reporting period we our efforts towards responsibly In the San Pedro de Atacama continued to successfully roll honoring our obligations to the village of Toconao, we honored out and expand our corporate nation while rising to the occasion our pledge to the local Atacameña volunteer program, “Lend a as necessary. indigenous community to Hand to Your Community”, officially hand over SQM’swhich consists of employees We hope that this Sustainability former accommodations camp who volunteer some of their Report will help each and every located in that town. The facility free time to projects that benefit one of you learn more about is currently slated to be a five- the community. This year 311 SQM and its endeavors in social, star hotel run by the indigenous volunteers committed their time environmental and economic community. to these projects, which range in matters. nature from supporting technical education to social and heritage- related programs for a total of 7 thousand hours of work*.

Harvesting nitrate-rich salts in Sur Viejo, Nueva Victoria operations, Tarapacá Region.

*Information outside the scope of assurance.

10 11 02

Materiality

12 13 REPORTE DE sustentabilidad 2016 REPORTE DE REPORTE

SUSTENTABILIDAD FOR MORE INFORMATION REGARDING THIS REPORT AND SQM’S

2018 SUSTAINABILITY WORK, PLEASE CONTACT US AT: REPORTE DE SUSTENTABILIDAD [email protected] WWW.SQM.COM

REPORTE DE SUSTENTABILIDAD 2017

ABOUT THIS REPORT DISCLOSURE 102 – 10/ 102-45/ 102-48/ 102-49/ 102- externally verify this report in 2019. The prior report (published Quantitative information are currently in the process of 50/ 102 – 51/ 102 – 52/ 102 – 53/ 102-54/ 102 -56 We have been response to new international in June 2019) was for the presented in charts and tables appealing two cases, which could We have been reporting in requirements and in-house goals. period from January 1, 2018, to uses the same methodology modify the LTIR for 2016 and preparing our accordance with the Global KPMG Auditores Consultores December 31, 2018. as the 2018 report. Changes or 2018 in the future. sustainability Reporting Initiative (GRI) for SpA conducted this assurance explanations required by the 10 years and for the second process. This report considers all entities report’s scope are included in each In addition, during the reporting reports in consecutive year we are reporting included in the consolidated chart and table presented. This period there were no significant accordance with in accordance with GRI standards. This report has been prepared financial statements, which are publication presents a variation changes in our organization or in accordance with the Core available at www.sqm.com/ in our Lost Time Injury Frequency our supply chain. the Global This year we reaffirm ouroption of the GRI standards. It is investors/ quarterly information/ Rate (LTIFR) as a result of some Reporting commitment to this transparency published annually and contains Financial Statements pages 19 accidents being reclassified. We practice and, as a company, for information for the period from and 20. Initiative (GRI) the first time we have opted to January 1, 2019, to December 31, NOTE: International System prefixes are used throughout this report, with the exception of ThUS$ = thousands of US dollars and MUS$ = millions of US dollars. since 2009.

14 15 STAKEHOLDERS DISCLOSURE 102 - 21/ 102 – 40/ 102 – 42/ 102 – 43/ 102-44

Throughout this year and as a result of preparing our 2019 Sustainability Report, we have rearranged the manner in which we report on our stakeholders in order to present a more precise description of the type of relations we have with each one.

We consider stakeholders to be those individuals or groups of individuals who are significantly affected by our activities and whose actions or omissions may affect SQM’s operations.

SQM has independently identified its stakeholders according to the nature of our business and relations with them, based on four areas: needs, impacts, interests and expectations.

It is our goal as a company to establish and maintain close, trust-based ties with each stakeholder or individual, by way of ongoing dialogue and other opportunities such as meetings, working groups or direct contact through the Company’s various departments.

As established in SQM’s corporate governance framework, the sustainability report is reviewed by the board of directors and includes Workers at Coya Sur operations, Antofagasta Region. a description of relevant stakeholders. A meeting is then arranged with the Director of Communications, Sustainability and Public Affairs, who explains to the board the importance of these stakeholders and their expectations, as part of our efforts to maintain stable, ongoing relations with our stakeholders over time, knowing full well that these relations can be dynamic.

16 17 STAKEHOLDER TABLE

DISCLOSURE 102-40/ 102-42/ 102-43/ 102-44

WHO THEY INTERESTS AND WHO THEY INTERESTS AND STAKEHOLDERS HOW WE ENGAGE AND COMMUNICATIONS STAKEHOLDERS HOW WE ENGAGE AND COMMUNICATIONS ARE EXPECTATIONS ARE EXPECTATIONS

Employees Workers directly Salaries, benefits, quality Daily interactions in the workplace/ Direct communication Organizations Trade Support to create value Meetings with participation by our representatives/ employed by of life, professional between supervisors and area managers and the workers and Institutions associations, for the community, region, Meetings to support initiatives/ Technical meetings/ SQM with open development, information reporting to them/ Regular union meetings, meetings private country. Committed Visits to sites or areas of interest/ Participation in and fixed-term about the Company. between workers, management, senior vice-presidents and public to initiatives that are seminars, training, etc. contracts. and managers. foundations, of interest to the Texto NGOs, organization, the Company Internal communication channels, such as data screens institutions in plays an active role in the in common areas, a newsletter published three times general. organization. The Company per year, bulletin boards, intranet and mailings/ Key contributes resources for information is delivered on digital platforms such as: project development. Facebook, Instagram, YouTube channel and the new App “Mi SQM.” Authorities Local, regional Creation of value for Official or formal meetings/ Technical meetings/ Work and national the community, region, meetings related to public and private initiatives/ Shareholders The Company’s Capitalization of their Direct contact with Investor Relations/ Delivery of key authorities, country. Fulfillment of Inspections/ Online filing of information. and investors main investment, financial information about the Company’s financial performance regional, legal obligations and shareholders performance, risk through the Investor Relations website, the Annual national offices commitments under RCAs and management, corporate Report, the 20F, the Sustainability Report, quarterly and public (environmental permits). bondholders. governance practices, earnings releases, Essential Event or Event of Interest agencies. transparency and open filings/ Calls and face-to-face meetings, participation communication that in local and international conferences, non-deal Media Journalists, Pertinent and relevant Contact with media through communications area/ allow for the Company’s roadshows, facility visits, shareholder meetings and newspapers, information regarding the Press releases, interviews or meetings/ Delivery of sustainability. Investor Day. radio, TV, digital Company’s activities, in its important information about the Company through media various fields of action. digital platforms such as: Facebook, Instagram, LinkedIn Contractors and Contractors Transparent bidding Meetings with personnel from the supply and contracting and Youtube channel. Suppliers and suppliers processes, payments within departments, as well as operational managers and of goods and agreed deadlines and supervisors where services are provided/ Visits by supply services (both conditions, establishing department to supplier facilities or offices/ Orientation general and lasting commercial courses, safety training/ Follow up and ongoing contacts sales). relations, supplier with service providers selling our products in order to development. guarantee deliveries/ Special programs for supplier training attended by SQM in the regions/ Meetings with trade associations attended by SQM/ Delivery of important information on digital platforms such as: Facebook, Instagram and YouTube channel.

Customers Farmers, Fulfillment of commitments Periodic, direct communication and visits with clients/ Site pharmaceutical made regarding product visits and surveys on products and operating standards/ companies, car supply and quality Delivery of important information about the Company manufacturers in accordance with through digital platforms such as: Facebook, Instagram and technology agreed-upon deadlines, and YouTube channel. companies, production processes that among others. meet product safety and sustainability standards and regulations.

Community Residents of Creation of direct and Communication and regular meetings with SQM communities indirect jobs, long-term representatives, community leaders and members/ located near support for the social and Site visits/ Involvement in local working groups and operations, economic development operational inspections alongside public agencies/ indigenous of the community and Community activities and festivities/ Daily interaction with communities care and appreciation programs developed in conjunction with the community and community for the environment and or organizations. associations. community at large.

Pertinent, fluid communication.

18 19 MATERIALITY tal communication media du- We also met individually with the DISCLOSURE 102-43/ 102 -46 / 102 -47/ 102 -49 ring the reporting period. members of the 2018 “Report Formulation Committee.” This One of the challenges we • Brief questionnaire conducted group is made up of members faced when preparing the in January 2020 with active from the areas of community 2019 Sustainability Report was SQM board members. affairs, environmental affairs, determining the best way to human resources and convey this information so • Interview with independent communications, who were that it would be more clearly director. consulted on the different topics understood by our stakeholders, • Survey on the main issues our that should be addressed in our in accordance with our business investors brought to the atten- Report. This group of individuals strategy. tion of our Investor Relations and their areas are responsible for area in December 2019. We lean on several different compiling most of the content documents to define materiality • Survey conducted by Ecovadis contained in each publication. in the context of this report. These on SQM as a supplier. Information provided by company include tools that have assisted • Statement of Sustainability areas during the data collection us in preparing this report, such Commitments taken on by process constitutes an additional as third-party studies or reports SQM under Grands Domaines source for identifying material drafted by direct consultants. du Senegal CSR’s Commit- aspects. ments 2019-2020, as a su- In this context, we have used the pplier. Once the material aspects have following as a basis for identifying been identified, they are then material aspects: • Internal Assessment of SQM validated and reviewed by the Corporate Guidelines and Office of Communications, • Materiality for the 2018 Sustai- Communications, conducted Sustainability and Public Affairs. nability Report was determi- by Surmedia during the first ned on the basis of the results half of September 2019. of e-surveys (or face-to-face surveys when Internet wasn’t • Study on the Perception, Re- accessible) conducted with: putation and Positioning of communities, suppliers, insti- SQM in Northern Chile, con- tutions, authorities, customers ducted by Surmedia during and SQM employees; Our list the first half of October 2019. also considered issues cove- • Review of news published by red by national, regional and traditional media outlets and international media in 2018, on news sites from January 1, based on the media’s editorial 2019 to December 31, 2019. criteria, and topics highlighted Taking measurements at solar evaporation ponds, Salar de Atacama operations, Antofagasta Region. by SQM in traditional and digi-

20 21 2019 MATERIAL DISCLOSURE 102-47 ASPECTS MATERIALITY MATRIX High Relevance 9 -

8 -

7 -

6 -

5 -

4 - Relevance to Stakeholders 3 -

2 -

1 -

DISCLOSURE 102-47 0 - • Pollution from mining. LABOR ASPECTS 0 1 2 3 4 5 6 7 8 9 ENVIRONMENTAL ASPECTS High Relevance • Facing future environmental • Safety and accident rates. Relevance to Company • Water use and management. restrictions imposed on cu- • Labor relations and condi- Water use and management. Low or potentially low carbon Lithium as the main product for rrent production processes tions. footprint. technological and international • Eco-friendly final products (li- (water use, water evaporation Eco-friendly final products development thium, solar salts, iodine, ferti- ponds, caliche mining, brine SOCIAL ASPECTS (lithium, solar salts, iodine, Waste management. lizers). extraction, etc.) fertilizers). Safety and accident rates. • Developing a mutually-bene- • Conservation of areas su- Pollution from mining. ECONOMIC ASPECTS ficial relationship with nearby Conservation of areas Labor relations and conditions. rrounding operations, taking communities (social develop- surrounding operations, Facing future environmental precautions in terms of envi- • Lithium, product quality and ment). taking precautions in terms of restrictions imposed on current Developing a mutually-beneficial specifications, volume, prices, ronmental issues. environmental issues. production processes (water relationship with nearby capacity growth and expan- • Entrepreneurship. use, evaporation ponds, caliche communities. • Environmental issues related sion plans, supply expecta- Environmental issues related to mining, brine extraction, among to the Company. • Employment. tions, reliable product delivery the Company. others). Entrepreneurship. • PM Air emissions capacity. PM air emissions Lithium, product quality and Employment. • Low or potentially low carbon • Lithium as the main product specifications, volumes, prices, footprint. for technological and interna- growth and capacity expansion tional development. plans, supply expectations, • Waste management. confidence in capacity to deliver.

22 23 03

SQM, from Chile to the World

24 25 SOCIEDAD QUÍMICA Y MINERA DE CHILE S.A.

DISCLOSURE 102- 1/102-2/ 102-3/ 102-4/ 102-6/ 102-7/ 103-1/103-2/103-3

S.Q.M. S.A. is a global company focused on strategic industries for human development, such as food, clean energy and the technology that moves the world.

5,741 EMPLOYEES IN CHILE AND THE WORLD

6,944 AVERAGE NUMBER OF CONTRACTORS

ThUS$1,943,655 TOTAL ANNUAL SALES

Solar evaporation ponds, Salar de Atacama, Antofagasta Region.

26 27 DISCLOSURE 102-3/ 102-4/ 102-6/ 102-7 SQM IN THE WORLD GLOBAL PRESENCE DISCLOSURE 102-6 Our products reach 110 OPERATIONS IN CHILE OFFICES IN CHILE countries around María Elena the world.

Nueva Victoria

Iquique

Coya Sur

Tocopilla Antofagasta 20% DE MUJERES TRABAJANDO EN SQM Pedro de Valdivia

Salar de Atacama Salar del Carmen

COMMERCIAL OFFICES PRODUCTION PLANTS JOINT VENTURES / Santiago • Atlanta / USA • Jackson / USA PRODUCTION PLANTS / • Antwerp / Belgium • Topolobampo / Mexico COMMERCIAL OFFICES • Barcelona / Spain • Manzanillo / Mexico • Lima/Peru (office) • Guadalajara / Mexico • Veracruz / Mexico • Trujillo/Peru (plant) • Guayaquil / Ecuador • Ensenada/ Mexico • Brazil/Paranaguá, Sao Paulo, Imbitu- ba, Río Grande (warehouses) • Florence / Italy • Cadiz / Spain • Brazil/ Candeias • Bangkok / Thailand • Durban / South Africa We develop our products from caliche ore and brines extracted from • United States/Atlanta (plant) • Beijing / China • Cape Town / South Africa mineral resources located in northern Chile in the Antofagasta and • Arab Emirates/Abu Dhabi • Johannesburg / South Africa • San Antonio / Chile Tarapacá regions. • Arab Emirates/Abu Dhabi • Tokyo / Japan • India/ Andhra Pradesh–Kakinada We are a global leader in each of our five business lines: • Seoul / South Korea • China/Qingdao • Shanghai / China • Turkey/Antalya

• Netherlands/Terneuzen • Italy/Ramacca MARKETS SERVED

DISCLOSURE 102-6

SPECIALTY IODINE AND LITHIUM AND POTASSIUM INDUSTRIAL PLANT DERIVATIVES DERIVATIVES CHEMICALS We serve markets in North, Central and South America, Europe, Africa, Asia, Southeast Asia and Australia. NUTRITION Our customers come from the private and public sector and include large and medium-sized farmers, agricultural associations, farming co-operatives, distributors and supply manufacturers, and several of our products are used by the pharmaceutical, lubricant and technology industries, among others.

28 29 DISCLOSURE 102- 10 2019 HIGHLIGHTS

• The International Fertilizer Association (IFA) held its An- • SQM’s operations in Nueva • We re-certified our produc- • We opened our first mainte- nual Strategic Forum in Paris Victoria, located in the Tara- tion and sales processes for nance shop powered by re- where it presented SQM with pacá Region, were re-certified lithium, iodine and soluble fer- newable energy in the Salar de a gold medal in the category in Responsible Care, a certifi- tilizers under ISO 9001:2015 Atacama where we generate “Leadership in 2019,” demons- caction that is granted in Chile in September 2019. This re- 60% of the facilities’ energy re- trating that the Company’s by the Chilean Industrial Che- • We enclosed the conveyor newed certification is valid for quirements, thereby reducing sustainable work is in line with mical Association (ASIQUIM). belt loading system at the Port three years. This was possible our CO2 emission by six tons world-class standards. Thir- Our voluntary acceptance of of Tocopilla. This allowed us due to the rigorous work be- annually. The idea for this pro- ty-four companies from the this commitment ensures that to load ships directly from the gun in 2018. ject came from our workers industry were honored at the we will uphold the six basic yards thereby minimizing air and supervisors who accepted event. principles: continuous im- emission episodes during the • At our Salar de Atacama ope- the challenge of coming up provements in environment, loading process. Moreover, we rations we developed an with sustainable initiatives. health and safety; efficient use installed additional concrete on-line, real-time monitoring of resources; openly repor- paving bricks for storing final system that allows us to view ting on performance; liste- products, and upgraded the brine extraction information ning to, involving and working shipment control system. and performance data from with communities; coopera- the hydro-geological envi- ting with the government and ronmental monitoring plan, other institutions to develop which is being directly submi- and implement standards; and tted. This will help us ensure helping promote the responsi- that operations are sustainable ble management of chemical while also informing the com- products. munity. Click on the following link to access this monitoring tool: https://www.sqmsenlinea.com/. A second phase will include variables committed to in the Hydric Environmental Monitoring Plan.

30 31 • Also, in September, SQM’s Sa- lar del Carmen site that produces lithium carbonate and lithium hydroxide—essential to the development of electromobility—commissioned the first solar eco-charger, an entirely free-standing device that is not reliant on the • In November, the new nitrate power grid. The first of its kind production plant located at in South America. The Anto- our Coya Sur site began ope- fagasta Industrial Association • SQM executives and the Presi- rations designed to produce (AIA) recognized this initiati- dent of the Toconao’s Ataca- • In November, SQM and Uni- specialty plant nutrients and ve under the “Technological menian community signed an versidad Católica del Norte meet the growing global de- Contribution” category for its agreement marking the official signed an important agree- mand for solar salts. Additio- contribution to electromobili- handover of former SQM ac- ment to study microorganisms nally, SQM delivered solar salts On September 3rd, the Pozo ty development in the Antofa- • commodation camp facilities in brine. The study consists of to Cerro Dominador, the first Almonte farming and herding gasta Region. located in the village of Toco- determining until what point thermal solar power plant— community witnessed a dream nao that were donated to the in the brine concentration concentrating solar power— • In December, Spain’s Funda- come true when SQM and the community. The new Hotel process living microorganisms in Latin America that makes it ción Corresponsable hono- local municipality opened the Tockolan (located near Jere in can be found. The initiative is a possible to supply renewable red the Atacama Tierra Fértil first Agriculture and Livestock Kunza) is expected to open in significant milestone for local energy 24/7. Program for its contribution Research and Development 2021. The initiative will bene- scientific research, since the- to the local development of Center in La Tirana. The 1,000 fit all community members in re is no conclusive evidence the communities of Quillagua, m2 building houses a hydro- Toconoa, especially the young about life in water with high San Pedro de Atacama, Toco- ponic greenhouse and a spe- people and seniors. salt concentrations. nao, Talabre and Socaire. In cialty goat cheese manufac- these towns, its multidiscipli- turing center staffed by local nary team of professionals has farmers. organized diverse agricultural projects alongside local residents who received tools as part of the program.

32 33 • As of 2019, we have a Diver- • We delivered the first resour- sity and Inclusiveness Policy ces under the SQM-CORFO at SQM applicable to all levels agreement for 2019. During company-wide. The purpo- 2019 the Company delivered a se of this policy is to promo- total of US$3,090,988 in con- te an organizational culture • At year-end 2019, 16.4% of our tributions to the municipalities that fosters inclusiveness and workforce was female, which of San Pedro de Atacama, Ma- respect. Persons with disabi- is twice the national average ría Elena and Antofagasta while lities currently represent more in the mining industry. This the remainder of the amounts than 1% of SQM’s workforce, has been made possible as a committed to is on hold until thus surpassing the regulatory result of better selection pro- the legal contract conditions quota. cesses and an earnest attempt • We exported 14,000 tons of li- governing said contributions to form heterogeneous teams thium to China, of total sales have been met. and expand the female work- volumes of 45,100 tons of li- force at all levels throughout thium and lithium derivatives the organization. produced by SQM. This constitutes a significant milestone for the Company, particularly considering that the Asian country is the leading driver of electromobility as a manufac- turer of electric cars and technological products.

34 35 DISCLOSURE 102-2 IN THE HEART OF THE ATACAMA DESERT

The Atacama Desert, specifically Our organization is built and We play a role in the development in the Tarapacá and Antofagasta managed by a team of people and wellbeing of local regions, is abundant in mineral committed to excellence, communities by supporting reserves. The iodine and nitrate safety and integrity. We work projects and activities involving reserves in the caliche ore fields every day to cultivate a culture education, business development are the largest on the planet and of excellence, fostering and and protection of the environment the Salar de Atacama contains promoting creativity, agility and and historical heritage. We will brine reserves with the highest innovation in the workplace and continue to create value for concentrations of lithium and guaranteeing equal opportunity, all stakeholders by responsibly potassium in the world. inclusiveness and diversity. We managing natural resources, seek to create opportunities for sustainably expanding projects SQM is a global company that professional development so that and improving existing operations, develops and manufactures a people achieve their maximum with a focus on minimizing variety of products for several potential. We constantly strive to our environmental impacts by industries that are essential for comply with the high standards reducing our carbon, energy and human progress, such as health, of integrity described in our water footprints and working nutrition, renewable energy and code of ethics while actively together with our stakeholders, technology through innovation identifying and implementing employees, customers, suppliers and technological advancements. ideas to enhance compliance and communities. Our objective is to maintain our with those standards. We aim for global leadership position in safe, accident-free operations, the lithium, potassium nitrate, encouraging conduct that iodine and thermal salt markets promotes the physical safety by manufacturing high-quality and psychological wellbeing of products and promoting a culture everyone working directly and of excellence in order to comply indirectly with the Company. with our customers’ dynamic and SQM IS A GLOBAL changing requirements. COMPANY THAT DEVELOPS AND MANUFACTURES A VARIETY OF PRODUCTS FOR SEVERAL INDUSTRIES THAT ARE ESSENTIAL FOR HUMAN PROGRESS.

36 37 PRODUCTION PROCESSES

LITHIUM/POTASSIUM CHLORIDE PROCESSES POTASSIUM SULFATE PROCESS NITRATES PROCESS IODINE PROCESS

Caliche ore extraction

Extraction of brine Extraction of brine from salt ﬂat from salt ﬂat

Iodide plant

Solar evaporation ponds Solar evaporation ponds Heap leaching

Lithium ponds Solar evaporation ponds

Salt harvest Iodine and prilling plant

Salt harvest Lithium brine to Antofagasta

Potassium chloride Intermediate plant

Potassium sulfate plant Lithium carbonate plant Potassium chloride plant

Finishing plant Iodine

Potassium sulfate Granulated Crystallized Lithium Lithium carbonate potassium chloride potassium chloride hydroxide plant

Prilled nitrates Crystallized nitrates Lithium hydroxide plant

Port Port Port Port Port Port Port Port

POTASSIUM CHLORIDE LITHIUM HYDROXIDE LITHIUM CARBONATE POTASSIUM SULFATE POTASSIUM NITRATE IODINE Processes carried out fully or partially in: Processes carried out fully or partially in: María Processes carried out fully or partially in: Salar de Atacama and Salar del Carmen. Processes carried out in: Salar de Atacama. María Elena, Pedro de Valdivia and Nueva Victoria. Elena, Pedro de Valdivia, Coya Sur and Nueva Victoria

38 39 DISCLOSURE 102-2 OUR PRODUCTS

Specialty plant We are a global nutrition leader in each of our five business lines: Industrial Iodine and chemicals derivatives

Abengoa solar thermal power plant. Potassium Lithium and derivatives

LITHIUM AND DERIVATIVES

SQM has set a company-wide We know that many leading goal of transitioning toward industries globally use our “Green Lithium” production, lithium products as essential raw which entails producing with the materials in their manufacturing least possible impact so as to processes, for electromobility limit our carbon footprint while and state-of-the-art technology, optimizing the use of water and for example. Likewise, they engaging nearby communities in are also key consumables in our operations through programs the pharmaceutical and other aimed at boosting their social industries. wellbeing. Fertigation.

40 41 DISCLOSURE 102-2

LITHIUM CARBONATE (GRADES): ACTIONS FOR GREEN LITHIUM

Battery grade, micronized; • Solar power makes up 95.6% • Our operations are conti- Technical grade, crystals; of energy needs, and by using nuously regulated by 15 diffe- Technical grade, powder; solar evaporation ponds we rent government agencies. are able to keep our carbon Technical grade, micronized. We continually make invest- footprint low. This is a solu- • ments to guarantee product tion-free process. USES: availability, plus we have a team • We work to protect our hy- of professionals whose job • Rechargeable batteries dro footprint. We currently consists of ensuring that our use ~168 l/s, which is equal to processes meet environmental • Specialty glass 4.18% of all the fresh ground- standards. water rights in the entire basin. • Frits for ceramics and enamels • SQM uses ~26 l/kg of water OUR PRODUCTS HAVE ADDED • Specialty cements and adhe- VALUE: LITHIUM CARBONATE in its lithium hydroxide pro- (Li2CO3) AND LITHIUM sives duction; less than 1 liter of this HYDROXIDE (LiOH) amount is fresh water and the We can produce up to 70,000 • Powder for continuous cas- rest is made up of recycled wa- tons/yr of lithium carbonate, ting ter from the city of Antofagasta. and we are currently working • Industrial air conditioning • SQM posts each day on our on bringing this capacity up web site the amount of water to 120,000 tons/yr during the • Aluminum consumed daily by each of our second half of 2021. wells located in the Salar de LITHIUM HYDROXIDE (GRADES): Atacama. Moreover, this infor- We also convert lithium mation is available on line for Battery grade, crystals the ongoing monitoring con- carbonate into lithium Industrial grade, crystals ducted by regulatory authori- hydroxide in Chile. We have Technical grade, crystals ties. two production lines that can produce up to 13,500 tons/yr • We deliver quality products USES: that meet strict international of lithium hydroxide, which will standards. be expanded to approximately Rechargeable batteries • 21,500 tons/yr in 2021. • Our production and sales pro- • Lubricant grease cesses for lithium have been ISO 9001:2015 certified since • Colorings 2019.

Lithium ponds, Salar de Atacama operations, Antofagasta Region.

42 43 The process carried out in the Salar de Atacama consists of concentrating lithium solutions and using saturation and gravity to deposit them without the addition of external substances thereby eliminating most of the other elements and attaining an approximate 6% lithium concentration, which is 30 times more concentrated than the extracted brine.

This stage of the process takes more The solar than one year and most of the energy evaporation ponds change tone consumed in this process comes from based on their solar power. concentrations.

Once the desired concentration is obtained, the solution is sent to a chemical plant located in Salar del Carmen, on the outskirts of the city of Antofagasta, where SQM produces lithium carbonate and lithium hydroxide. Lithium ponds, Salar de Atacama operations, Antofagasta Region.

44 45 DISCLOSURE 102-2

SPECIALTY PLANT NUTRITION IODINE AND DERIVATIVES PRODUCTS:

We believe SQM to be the world’s At SQM, we believe ourselves to • Iodine largest producer of chlorine- be the largest global producer of free, natural potassium nitrates iodine since the world’s largest USES: that are 100% soluble and, as caliche mineral reserves (raw such, water efficient since they material for iodine production) • Antiseptic, germicide, disin- can be applied through irrigation are located in northern Chile. fectant, bactericides, fungici- systems to enhance the quality des Iodine is used in diverse medical, and performance of crops. This • Contrast media for X-ray agricultural and industrial is vitally important given global exams water scarcity and the need applications. It is the main to develop more sustainable component of injectable contrast • Povidone-iodine agriculture that yields better media for clinical exams and is • Synthesizing pharmaceuticals quality products and uses natural used directly in the production of fertilizers. many drugs. • Nylon industry

• Water repellent Product development at SQM is In industry, iodine is used in possible through the exhaustive several applications including LCD • Polarizing film for liquid crystal research and numerous field and LED screens, disinfectants, screens (LCD and LED) studies conducted by a global biocides added to paint and • Fluids for construction team of agronomists who work wood treatments, herbicides and directly with each farmer. others. • Pharmaceutical industry

PRODUCTS: SQM produces organic and • Raw materials or catalysts in inorganic iodine derivatives the formulation of products • Sodium nitrate, sodium po- under a joint venture with Ajay such as contrast media for tassium nitrate and potassium Chemicals. SQM is also actively X-rays nitrate present in the iodine recycling • Pharmaceutical intermediaries business in Europe and the United USES: States, either through Ajay or on • Chemical products its own. OUR IODINE AND • Crop fertilizer • Organic compounds and pig- DERIVATIVES ARE USED ments Fertigation BY THE HEALTHCARE • AND TECHNOLOGY • It is added to table salt to pre- INDUSTRIES TO vent iodine deficiencies IMPROVE PEOPLE’S LIVES.

46 47 DISCLOSURE 102-2

POTASSIUM INDUSTRIAL CHEMICALS

In order to supply its own PRODUCTS: Nitrates, potassium chloride, potassium chloride for use as boric acid and magnesium a raw material in producing • Potassium nitrate, potassium chloride, in addition to potassium potassium nitrate, SQM began sulfate and potassium chloride nitrate and sodium nitrate, operating in the Salar de Atacama. are the raw materials for solar USES: salts, which are essential to the SQM’s initial investment included functioning of solar thermal • Nutrient with multiple indus- building a potassium chloride and power plants; and magnesium trial uses potassium sulfate plant. The main chloride hexahydrate—known as sources of potassium available on • It prevents diseases such as bischofite—is used for effective the market for use in fertilizers high blood pressure, cerebro- dust control and de-icing on are: potassium chloride (KCL), vascular complications and roads.

potassium sulfate (K2SO4) and cognitive impairment PRODUCTS: potassium nitrate (KNO3). • In plants it improves resistance Of these three sources, to stressors such as extreme • Nitrates, potassium chloride, potassium chloride is by far the temperatures, droughts, para- boric acid and magnesium most important one globally and sites and other elements chloride, solar salts. SQM is the only company that USES: produces all three.

• Explosives It is important to bear in mind that potassium deficiencies in • Thermal energy storage plants can lead to abnormalities • Metals treatment and affect CO2 absorption. Additionally, potassium plays a key • Lubricant for oil extraction SOLAR SALTS role in how plants regulate water INDUSTRIAL APPLICATIONS OF • Fire retardant for root absorption and water loss POTASSIUM AND SODIUM NITRATES AS A MEDIA FOR THERMAL ENERGY through stomata. Having a good • Road stabilization STORAGE IN SOLAR POWER PLANTS. level of potassium boosts plants’ CONCENTRATING SOLAR POWER resistance to water stress. (CSP) PLANTS EQUIPPED WITH A MOLTEN SALT STORAGE SYSTEM STORE SOLAR ENERGY IN THE FORM OF HEAT, ENABLING 24/7 CONTINUOUS OPERATION FOR POWER GENERATION.

48 49 PRODUCT QUALITY

DISCLOSURE 102-6 SATISFIED CUSTOMERS ARE A The Company’s communications

Given the characteristics and MUST FOR SQM. AS A RESULT, THE policy has enabled us to build diversity of our products, we serve COMPANY HAS IMPLEMENTED: supplier-customer relationships numerous highly demanding where trust and transparency are • A Quality Management Sys- and sophisticated domestic fundamental. We have a Quality tem and other ongoing efforts and international markets and Complaint System, which is to optimize all manufacturing, customers involved in innovative designed to ensure satisfaction SQM HAS ITS OWN DISTRIBUTION AND LOGISTICS marketing and distribution with product deliveries and NETWORK MADE UP OF GROUND OPERATIONS, THE PORT industries such as electromobility, processes. provide technical and safety OF TOCOPILLA AND A NETWORK OF STRATEGICALLY– pharmaceuticals, and others. information on the use and STATIONED COMMERICAL OFFICES AND SALES STAFF. This has required sustained • Indicators are also conti- handling of products, and we have effort on our part to ensure that nuously reviewed and mo- an excellent technical team that is deliveries meet the standards nitored in order to maintain available to answer questions and specified by each customer in open communication chan- respond to technical or service our diverse markets, maintaining nels, production quality and complaints. and consolidating long-term, excellence in all operations. mutually beneficial relationships where innovation, excelence and quality are key.

50 51 Salar de Atacama Photo credit: Alejandro Álvarez. SQM Photography Contest.

DISCLOSURE 102-11/ 102-12 Association (Asiquim A.G.) for operations regularly. audits were conducted by iodine in 2020 in order to maintain better in 2019. This platform will help us At SQM we work toward and the Company’s operations in customers and one by a lithium customer records. gain a 360° perspective of our are committed to guaranteeing Nueva Victoria, and Protect & In 2019, the Company completed customer. lithium and iodine customers, compliance with environmental, Sustain certification–currently11 lithium customer surveys Our sales team across our leading in addition to safeguarding their safety and product quality with Stewardship Excellence– (making up the entire customer Customer concerns are directly markets visits our buyers regularly sales records and commercial standards, as stated in the from the International Fertilizers base), in addition to 18 iodine addressed by sales directors and in order to learn more about agreements. In addition, we added principles of our Sustainable Association for the Coya Sur, customer surveys and five sales managers. Any complaint their satisfaction. After each the quality management module Development Policy. This Salar de Atacama, Tocopilla, fertilizer and industrial chemical received from our customers sales visit, the matters addressed, so that we can communicate manner of doing business has Antofagasta and Santiago surveys, all related to sustainability is entered into the Quality including any related to customer with our customers in a timely inspired us to obtain several operations. and quality. Management System by sales satisfaction, are logged in a report and reliable fashion on matters voluntary qualifications and coordinators so the respective that is submitted to the respective such as complaints and/or Twenty-six (26) product quality certifications such as Ecovadis, Information is continuously area can investigate and respond commercial division. suggestions. Designated in-house statements for iodine and lithium Responsible Care provided by exchanged between SQM and to the matter. The Company spokespersons work closely with were updated. In addition, two We began working with Salesforce the Chilean Chemical Industries its customers, who also audit our hopes to migrate to a CRM system all the areas involved in the sales process.

52 53 For our specialty plant nutrients customer follow up plan in place. Our goal for this year was to line of business, since the very We are also constantly concerned execute the program to update beginning SQM has paid special with our ability to quickly react safety data sheets and packaging attention to its value chain, by to changes in national and and labels for iodine and lithium producing specific products that international regulations that may products for all markets. We have been adapted to satisfy affect the sale of our products. met our goal by 100% in regard the needs of each customer to safety data sheets and iodine based on their crops and soils, DISCLOSURE 102-12 packaging and labels, but we strengthening their yield and One such example is the decided to postpone lithium profitability and becoming a European Union’s chemical updates until 2020 due to minor strategic partner for its customers. substance management system changes. In order to meet this objective, (Registration, Evaluation, the Company has a broad Authorization and Restriction of The outcome of this effort network of highly-specialized Chemicals or REACH). REACH is consisted of 97 new or updated technical and agricultural experts employed to determine whether safety data sheets. In addition, in the field of specialty plant a specific substance constitutes six iodine packaging labels were nutrients who direct research a risk to human health or the updated and three new ones projects on specific soil and environment. were issued. crop requirements and provide expert advisory services in plant In 2019, all notifications were nutrition. executed under the K-REACH standard for SQM products sold Ensuring proper and continuous in South Korea. A total of six pre- supply of our products is essential registration notifications were to SQM, which is why we have a executed and completed in May— one month prior to the deadline.

Salar de Carmen operations, Antofagasta Region.

54 55 DISCLOSURE 417-1

All of the Company’s products SQM has developed a global are subject to corporate labeling branding strategy that includes requirements and packaging guidelines on ethics, corporate artwork updating procedures, governance and procedures. which reflects the information These have been distributed to described in accordance with the sales offices and subsidiaries and regulatory framework applicable are available in digital format. to the different life cycle stages of SQM’s products. SQM sells specialty plant nutrition products that are of general The labeling standard provides interest to authorities for two guidelines for all packaging main reasons: broadly dispersive and shipping units for products use, which involves concern for sold by the Company, the environmental destination, including: identificationand potential malicious use in (generic/commercial name), the manufacturing of homemade IMDG (International Maritime explosives. Dangerous Goods Code) and GHS (Globally Harmonized System The most important product is SQM has of Classification and Labeling of potassium nitrate and, to a lesser developed a global Chemicals) coding requirements extent, sodium nitrate. For both, and special customer the regulatory environment in branding strategy our main markets is constantly requirements. The procedure that includes for updating packaging artwork evolving, particularly after includes the product origin authorities took measures to guidelines on address terrorist threats. designation, other regulatory and ethics, corporate commercial requirements and safety instructions regarding the governance and product’s life cycle. All products have a respective safety data sheet procedures. in accordance with destination market requirements.

56 57 DISCLOSURE 102-2 RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES

One of the main goals of our • Using the products, we cu- handled in bulk. Our research research and development staff rrently produce as the basis to and development activities have is to develop new production develop new products that will also led us to new markets with processes in order to maximize provide greater margin, either added value for our products. For the returns obtained from through vertical integration or example, using sodium nitrate the resources we mine. Our adapting product specifica- and potassium nitrate for thermal research is conducted by three tions. storage at solar power plants. different units that study all of the • Adding value to inventories. processes involved in producing We have patented several nitrate our products, including designing • Using renewable energy in our and iodine production processes. chemical processes, phase processes. These patents have been chemistry, methodologies submitted primarily in the United Our research and development for chemical analysis and the States, Chile and other countries activities. As a result, the Company physical properties of our finished when necessary. Our production has created new methods for products. processes are patented under extracting, crystallizing and Chilean patent No. 47,080 for finishing products. Technological Research and development iodine (producing spherical advancements in recent years emphasizes: granules from sublimating have made it possible for us to chemical products) and Japanese • Optimizing current proces- improve the efficiency of nitrate, patent No. 4,889,848 for nitrates ses in order to reduce costs potassium and lithium operations, (granulated fertilizers). and improve the quality of our enhance the physical quality products by implementing of our filled products, reduce new technologies. dust emissions and improve compacting by using special additives designed for products

58 59 OUR CERTIFICATIONS DISCLOSURE 416-1/ 102-12

SQM’s products and processes ISO 9001:2015 • Some soluble products for are certified to ensure quality specialty plant nutrition. The Company has implemented and protection of people and the ISO 9001:2015 for all lines of • Lithium carbonate (industrial, environment during production business. The independent technical and battery-grade). and sales processes. international certification is valid • Lithium hydroxide (industrial, for the following production and Following a demanding process technical and battery-grade). sales processes: CERTIFICATION OF begun in 2018, we re-certified our PRODUCTION AND SALES production and sales processes • Iodine. 2019 PROCESSES FOR LITHIUM, for lithium, iodine and soluble IODINE AND SOLUBLE fertilizers under ISO 9001:2015 in • Potassium nitrate and sodium FOR 3 YEARS FERTILIZERS WITH THE ISO 2019. This renewed certification 9001:2015 STANDARD. nitrate (standard, refined and is valid for three years. technical-grade).

Salar del Carmen operations, Antofagasta Region.

60 61 PROTECT & SUSTAIN RESPONSIBLE CARE CERTIFICATION, STEWARDSHIP DISCLOSURE 416-1 EXCELLENCE RATING In 2019, our Nueva Victoria site, DISCLOSURE 416-1 located in the Tarapacá Region, The International Fertilizer IFA SHE principles align with the In 2019, the Company underwent was re-certified under the Industry Association (IFA) SQM Sustainable Development an IFA Protect&Sustain Responsible Care certification, certified SQM’s commitmentPolicy. This is essential to meeting recertification audit that we had which is valid for three years. to responsible, safe product the standards set forth in the been preparing for since 2018. SQM has been certified under this management, which includes Protect & Sustain program. The outcome was positive in chemical industry international aspects such as quality, health, that we attained the Stewardship certification since 2013, having occupational safety, industrial and SQM’s certified areas include Excellence certification, good for been previously re-certified in environmental safety throughout production, product development three years. 2016. Responsible Care consists the different stages of the product and fertilizer delivery at the of the voluntary acceptance of life cycle. Salar de Atacama, Coya Sur, a commitment to continuous Antofagasta, Santiago and Port of improvements in the areas of Tocopilla operations. environment, health and safety; efficient use of resources; openly reporting on performance; listening to, involving and working with communities; cooperating with the government and other institutions on developing and implementing standards; and helping promote the responsible management of chemical products.

62 63 SQM, PRESENT AT GLOBAL SQM AT FRUIT ATTRACTION the subsidiary presented on the one of the most important events PROMOTING SPECIALTY PLANT solutions that meet these crops’ EVENTS 2019, THE LEADING EVENT FOR benefits of potassium nitrate, in the European fruit and produce NUTRITION SOLUTIONS IN NEW needs in the various stages of their EUROPE’S FRUIT AND PRODUCE positioning it as the potassium market, attracting more than MARKETS phenological development by Through a network of experts, INDUSTRY nitrate with the industry’s lowest 80,000 industry professionals providing farmers with potassium SQM offers ongoing assistance SQM was present at commercial carbon footprint and reinforcing from over 140 countries. nitrate-based nutritional solutions programs to all customers to help For the sixth straight year, events held in countries where our commitment to global that meet the specific needs of them optimize increasingly scarce SQM Iberian participated in our Company is banking on sustainability. their harvests while also boosting resources such as water and Fruit Attraction—the leading developing new business, such their yield and quality. farmable soil. It does this through event for Europe’s fruit and as: Poland, Romania, Greece SQM Iberian also participated with activities such as technical talks, produce industry—at the IFEMA and Russia. These markets a large stand where it promoted seminars, publications and International Fair in Madrid. Its are developing interesting an ample portfolio of products support material. involvement at this important applications for specific crops that are sold on the European forum aims to strengthen and such as apples, grains, citrus market, primarily based on using diversify its position in the plants, vegetables and greenhouse potassium nitrate in fertigation European market. At the event, grown crops. SQM has developed applications. Fruit Attraction is

64 65 FIFTY-ONE YEARS OF INNOVATION AND DEVELOPMENT

Following 51 years of industry presence, and thanks to the efforts of our professionals and technicians, our production processes have a high level of technological development and we have expanded our business network to become industry leaders in lithium, iodine, specialty fertilizers and solar salts. We have commercial offices and a complete logistics network to reach the world’s main markets and customers in more than 110 countries on six continents.

EARLY DAYS IN THE EIGHTIES IN THE NINETIES THE NEW CENTURY 2004 extraction, with a robust 2008 environmental monitoring 1926 1985 1993 2001 and early warning plan. A joint venture agreement The lithium carbonate Additionally, and in is signed with Migao Inauguration of Maria The heap leaching process The Company begins SQM begins a new stage production process carried collaboration with CONAF Corporation for the Elena, the first plant using is first applied in extracting leasing mining claims in of expansion by signing out at our Salar del Carmen and the San Pedro de production and distribution the Guggenheim system. nitrates and iodine and the Salar de Atacama from commercial agreements plant is certified under ISO Atacama community, of potassium nitrate in In 1931, operations begin other important changes CORFO, paving the way for with international 9001:2000. China. in Pedro de Valdivia, the are made to the production the production of potassium 1995 companies, expanding its improvements are made to second plant with the same system. and lithium. Operations production capacity and the tourist facilities at Laguna The Company invests in system, but on a larger begin at a technical-grade The first environmental sales network for which it is 2006 de Chaxa. permit is granted to operate rebuilding the town of scale. potassium nitrate facility in known today. The Company issues its first 1986 in the Salar de Atacama and María Elena after the 2007 Coya Sur. Sustainable Development begins producing potassium 2007 earthquake. SQM builds two Potassium nitrate is first Policy. modern residential facilities 1968 produced in Coya Sur using chloride. The Company 2002 Production begins at the for 772 workers in the same Sociedad Química y Minera a completely new process 1994 signs an agreement with the The first environmentalThe Company acquires new nitrate prilling and town. de Chile S.A. (SOQUIMICH) designed by SQM. SQM earns an international Chilean National Forestry management and DSM’s iodine business granulation plant in Coya is created: 37.5% state- quality certification (ISOCorporation (CONAF) corporate quality system is in Chile, located in the Sur. owned, represented by 9001) for its iodine plants, to monitor lagoons and implemented at SQM. Tarapacá Region. It invests 2009 In collaboration with the CORFO that provides making it one of the first bird fauna in the Salar de in the new business to Tarapacá Regional Nitrate SQM signs new joint the Victoria office, and Chilean companies to Atacama. With a view to supporting expand the production Museum Foundation, a venture with Coromandel 62.5% privately-owned, become certified. neighboring communities, capacity of its iodine plant project is carried out to (India), Qingdao Star (China) represented by Anglo the Company implements in Nueva Victoria. 1997 and Roullier (France). Lautaro that owns the María the “Lend a Hand to refurbish the industrial area Elena and Pedro de Valdivia Production of lithium Your Community” grant The Salar de Atacama site of the Humberstone nitrate offices. SOQUIMICH carbonate begins in the Salar program to support social obtains environmental office. is responsible for the del Carmen, Antofagasta. initiatives proposed by SQM approval to increase The Salar del Carmen lithium production and sale of all Iodine production begins employees. hydroxide production nitrates and iodine in Chile. at the Company’s plant in process is certified under In 1971, CORFO nationalizes Nueva Victoria, Tarapacá ISO 9001:2000. the Company. Region.

66 67 2011 2013 2015 2017 Atacama until 2030. Lithium carbonate production Production of Ayllu Wine SQM’s operations in Nueva The Company earns Protect Thanks to improved iodine is expected to reach 2.2 begins as part of the Victoria are certified in& Sustain certification from sales projections, SQM’s million tons during that Atacama Tierra Fértil Responsible Care by the the International Fertilizer Nueva Victoria plants hit time. SQM will make a one- program. This wine is Chilean Industrial Chemical Industry Association (IFA). their 2017 production time payment of US$17.5 produced in Toconao at Association (ASIQUIM). capacity targets of 13,000 million plus interest to Production is suspended 2,400 meters above sea MT/year. CORFO. FROM 2010 - TODAY level. In collaboration with The Center for at Pedro de Valdivia and 2010 the Crea+ Foundation, a Environmental Education production of iodine, iodide SQM begins an outreach SQM must increase the mathematics assistance in the Pampa del Tamarugal and nitrate salts is now program with technical- payments it makes to SQM Vitas launches program is started in the National Reserve is concentrated in Nueva professional high schools CORFO, which are linked phosphate products town of San Pedro de inaugurated in the Tarapacá Victoria. in the Antofagasta and to sales of different under its soluble products Atacama. Region, in partnership Tarapacá regions, through products, and make annual Over 5,700 new Tamarugo segment in Dubai. with the National Forestry collaboration agreements contributions of US$10.8 trees have been planted Production starts at the Corporation. As part of its to strengthen the future to US$18.9 million for R&D, Environmental approval through SQM’s Tamarugo potassium nitrate plant in community programs, the applicant base for the contribute US$10 to US$15 is obtained for the Pampa Planting Program. These Coya Sur, increasing annual Company and the town of various positions available million to communities near Hermosa project to expand efforts have considerably production by 300,000 Quillagua begin operating at the Company. the Salar de Atacama, and production of iodine and increased the population of tons. SQM and Migao a high-tech, hydroponic make another contribution nitrates in Nueva Victoria, this native tree in the areas Corporation inaugurate a greenhouse. equivalent to 1.7% of SQM Tarapacá Region, with an of Llamara and Bellavista in 2018 new potassium nitrate plant Salar’s total annual sales environmental monitoring the Tarapacá Region. in China. CORFO and SQM sign an for regional development. and early warning plan. 2014 agreement that includes The agreement binds SQM The LEAN work 2016 important modificationsto strengthen its corporate methodology is successfully to the Salar de Atacama governance, through The SQM Strategic implemented through a Lease Agreement. On one auditing and environmental Development Plan is program known as M1 as hand, CORFO authorizes control mechanisms and drafted, establishing part of the Company’s SQM to increase its quotas creating opportunities for guidelines for development efforts to cut costs and for the production and coordinating with CORFO. enhance productivity. over the next few years. sale of lithium and lithium derivatives produced from The Puquios de Llamara SQM’s operations in resources in the Salar de Observation Trail is Nueva Victoria are re- inaugurated in the Pampa certified in Responsible del Tamarugal National Care, an initiative that is Reserve. An exhibit entitled managed in Chile by the “Industrial Life in the Chilean Industrial Chemical Nitrates Industry” opens Association (ASIQUIM). Coya Sur operations, Antofagasta Region. at the Huanchaca Ruins Museum in Antofagasta.

68 69 04

Value Generated

70 71 VALUE GENERATED

Customers in Thailand Photo credit: Antoine Sauvage. SQM Photography Contest.

For the year 2019, SQM reported sales of potassium chloride and a few key markets. As a company profits of US$ 278.1 million, which lower average prices for the we believe that the basis for represents a drop over the same lithium line of business. However, growth in demand in the lithium period in 2018, when profits the market for the iodine and industry is more compelling totaled US$ 439.8 million. derivatives line of business was than ever given automobile positive in 2019 as a result of manufacturers’ commitment to In 2019, revenue totaled higher average prices compared electrifying their vehicle fleets. US$1,943.7 million, which to 2018. Likewise, customers enjoy more represents a 14.2% decrease when competitive advantages as a result compared to the US$2,265.8 Despite significant growth in the of technological advancements. million in income posted for the lithium market in 2019, triggered same period in 2018. by what we believe to be a 14% The specialty plant nutrition hike in lithium demand, results business line reported a total The Company’s 2019 results were were lower than originally of US$723.9 million in revenue, lower than those reported last forecast due to delays in the down 7.4% from the US$781.8 year, primarily due to decreased Taking samples at Coya Sur operations. penetration of electric vehicles in million reported in 2018. Photo credit: Victor Pizarro. SQM Photography Contest.

72 73 Operating revenue from sales Sales of potassium chloride Industrial chemicals posted of iodine and derivatives for and potassium sulfate for the operating revenue of US$ 94.9 the year ended December 31, year ended December 31, 2019, million, down 12.4% from the 2019, totaled US$371.0 million, totaled US$212.2 million, 20.7% US$108.3 million booked in 2018. up 14.2%. Sales volumes in this less than 2018. business line totaled 12.7 Mton.

DISCLOSURE 102-7

MARKET SHARE

MARKET SHARE % FOR EACH BUSINESS LINE

0 51% 0

0 34% >30% 0

0 15%

10 <1% 0

36% 6% Specialty plant nutrition Iodine and derivatives % CONTRIBUTION TO Lithium and derivatives COMPANY’S GROSS Industrial chemicals MARGIN

Potassium 27%

25% Salar de Atacama operations, Antofagasta Region.

74 75 DISCLOSURE 102-7

SALES VOLUMES BY BUSINESS LINE

Sales Volumes by 2019 2018 2017 2019/2018 Business Line

Specialty Plant Nutrition Sales Volumes

Sodium nitrate kton 30.2 25.0 26.7 5.2 21%

Potassium nitrate and kton 617.4 673.4 601.4 -56.0 -8% sodium potassium nitrate

Specialty mixtures kton 238.9 242.5 209.0 -3.6 -1%

Other specialty fertilizers kton 155.3 141.6 129.1 13.7 10% (*)

Iodine and Derivatives Sales Volumes

Iodine and Derivatives kton 12.7 13.3 12.7 -0.6 -5%

Lithium and Derivatives Sales Volumes

Lithium and derivatives kton 45.1 45.1 49.7 0.0 -0%

Potassium Sales Volumes

Potassium chloride and kton 597.3 831.8 1,344.3 -234.5 -28% potassium sulfate

Industrial Chemicals Sales Volumes

Industrial nitrates kton 123.5 135.9 167.6 -12.4 -13%

*Includes mainly trading of other specialty fertilizers.

Port of Tocopilla, Antofagasta Region.

76 77 We continue to be optimistic We are still engaged in the process DISCLOSURE 201-1/ 201-4 about the long-term growth of for an environmental permit for the lithium market, which is why the “Tente en el Aire” project to GENERATION AND DISTRIBUTION OF ADDED VALUE OVER LAST THREE YEARS we continue moving forward with modify our operations in Nueva our plans for expansion in Chile. Victoria, Chile. Our current iodine We expect to reach a capacity of production capacity at that site Economic Value Generated (ThUS$) 2019 2018 2017 120,000 tons in 2021. We decided is 11,000 tons/year, and this to complete the expansion of our permit will allow us to increase Operating revenue 1,943,655 2,265,803 2,157,323 lithium hydroxide capacity, which this capacity in order to support Finance income 26,289 22,533 13,499 was previously announced as market growth. Other non-operating income 18,218 32,048 17,827 two, 8,000-ton modules, and we Total economic value generated by SQM 1,988,162 2,320,384 2,188,649 believe that the first phase will be GENERATING AND Economic Value Distributed (ThUS$) 2019 2018 2017 DISTRIBUTING ADDED VALUE completed next year. Operating expenses 1,247,265 1,249,237 1,035,863 The Company has generated Payments to providers of capital 407,846 822,917 519,609 We have plans to expand our economic resources for its diverse Payments to the State (by country) 108,222 178,630 186,869 lithium carbonate capacity in stakeholders and contributed Total economic value distributed by SQM 1,763,333 2,258,085 1,742,341 Chile even further in the future to Chile’s economic and social and we will continue working on Economic Value Retained (ThUS$) 2019 2018 2017 development. the Mt. Holland project in order to Total economic value retained by SQM 224,829 62,299 446,308 make our final decision in the first Employee benefit expenses quarter of 2021. totaled US$238,748 million in 2019. We believe that the price of iodine Contributions from the State (ThUS$) 2019 2018 2017 will continue rising throughout Employee training tax credit (Sence) 1,276 1,250 1,166 2020, which will significantly Tax credit for donations 837 658 300 grow our margins per ton in this Mining license 24 22 22 line of business. This should offset Property, plant and equipment tax credit 133 175 153 the slightly lower sales volumes Provisional payments for absorbed taxable profits (PPUA) 915 - - we are expecting for 2020. Foreign-source credit - 1,528 -

Total 3,184 3,632 1,641

78 79 CORPORATE STRUCTURE

DISCLOSURE 102-5

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, 2019, the Company’s majority shareholders are: As of December 31, 2019, the 12 largest Series A shareholders were:

Ownership Interest Ownership Interest Series A + B Chilean Tax ID No. of Shares Series A Chilean Tax ID No. of Shares (%) (%)

INVERSIONES TLC SPA 76.902.021-7 62,556,568 23.77% INVERSIONES TLC SPA 76.902.021-7 62,556,568 43.80%

SOCIEDAD DE INVERSIONES PAMPA CALICHERA SA 96.511.530-7 48,687,306 18.50% SOCIEDAD DE INVERSIONES PAMPA CALICHERA SA 96.511.530-7 44,894,152 31.43%

THE BANK OF NEW YORK MELLON ADRS 59.030.820-K 38,311,788 14.56% POTASIOS DE CHILE SA 76.165.311-3 18,179,147 12.73%

POTASIOS DE CHILE SA 76.165.311-3 18,179,147 6.91% INV GLOBAL MINING CHILE LTDA 96.863.960-9 8,798,539 6.16%

INV GLOBAL MINING CHILE LTDA 96.863.960-9 8,798,539 3.34% INVERSIONES LA ESPERANZA CHILE LIMITADA 79.798.650-K 4,147,263 2.90%

BANCO ITAU CORPBANCA ON BEHALF OF FOREIGN KOCHI SA 96.518.570-4 874,192 0.61% 97.023.000-9 7,373,216 2.80% INVESTORS KOWA CO LTD 59.046.730-8 781,429 0.55% BANCO DE CHILE ON BEHALF OF NON-RESIDENT 97.004.000-5 6,842,855 2.60% THIRD PARTIES BANCHILE C DE B S A 96.571.220-8 491,729 0.34%

BANCO SANTANDER ON BEHALF OF FOREIGN TANNER C DE B S A 80.862.600-8 384,689 0.27% 97.036.000-K 6,618,416 2.51% INVESTORS KOWA HOLDINGS AMERICA INC 59.023.690-K 227,550 0.16% AFP HABITAT SA 98.000.100-8 5,337,680 2.03% SOC ADM DE FDOS DE CESANTIA DE CHILE II SA 76.237.243-6 194,959 0.14% EUROAMERICA C DE B S.A. 89.899.230-9 4,866,523 1.85% FDO SOLIDARIO BANCO DE CHILE ON BEHALF OF NEW YORK BANCHILE C DE B S A 96.571.220-8 4,777,425 1.82% 97.004.000-5 177,463 0.12% CLIENTS INVERSIONES LA ESPERANZA CHILE LIMITADA 79.798.650-K 4,193,763 1.59% Subtotal 12 Largest Series A Shareholders 141,707,680 99.22% Subtotal 12 Largest Series A and B Shareholders 216,543,226 82.27% Total Series A Shares 142,819,552 100% Total Series A and B Shares 263,196,524 100%

NOTE: The Bank of New York Mellon is the depositary bank for the Company’s ADSs that trade on the New York Stock Exchange. Information on the holders of the Company’s ADSs is presented at the end of this section.

80 81 DISCLOSURE 102-5

As of December 31, 2019, the 12 largest Series B shareholders were:

Ownership Interest Series B Chilean Tax ID No. of Shares (%)

THE BANK OF NEW YORK MELLON ADRS 59.030.820-K 38,311,788 31.83%

BANCO ITAU CORPBANCA ON BEHALF OF FOREIGN 97.023.000-9 7,373,216 6.13% INVESTORS

BANCO DE CHILE ON BEHALF OF NON-RESIDENT 97.004.000-5 6,842,746 5.68% THIRD PARTIES

BANCO SANTANDER ON BEHALF OF FOREIGN 97.036.000-K 6,618,416 5.50% INVESTORS

AFP HABITAT SA 98.000.100-8 5,337,680 4.43%

EUROAMERICA C DE B S.A. 96.899.230-9 4,863,467 4.04%

BANCHILE C DE B S A 96.571.220-8 4,285,696 3.56%

AFP PROVIDA S.A. 76.265.736-8 4,002,653 3.33%

SOCIEDAD DE INVERSIONES PAMPA CALICHERA SA 96.511.530-7 3,793,154 3.15%

AFP CUPRUM S.A. 76.240.079-0 3,594,402 2.99%

AFP CAPITAL S.A. 98.000.000-1 3,221,037 2.68%

BOLSA DE COMERCIO DE SANTIAGO BOLSA DE 90.249.000-0 3,077,930 2.56% VALORES

Subtotal 12 Largest Series B Shareholders 91,322,185 75.86%

Total Series B Shares 120,376,972 100%

TOTAL SERIES B SHARES 120,376,972 100%

TOTAL SERIES A AND B SHARES 263,196,524 100%

82 83 05

Corporate Governance

84 85 ORGANIZATION AND CORPORATE GOVERNANCE DISCLOSURE 102 – 18/ 102 – 19/ 102 - 20/ 102 – 22/ 102 - 23/ 102 - 24/ 102 - 27/ 102 – 32/ 102 - 33/ 102 - 35/ 102 - 36/

Coya Sur operations. Photo credit: Jimmy Zumaran. SQM Photography Contest.

DISCLOSURE 102 – 18/ 102 - 19

SQM has corporate governance The board of Sociedad Química insurance under reasonable guidelines that are designed to y Minera de Chile S.A. must market conditions in the name guide the board in exercising its exercise its best judgment in of its directors and executives to duties with the Company and its order to act in line with what it the greatest extent possible in shareholders. These guidelines reasonably believes to be in the keeping with current legislation. are not intended to serve as a set interests of the Company and its of legal obligations, but rather a shareholders. Upon accepting flexible framework that guides this obligation, SQM directors are the work of the board. This policy authorized to rely on the honesty can be modified by the board at and integrity of the Company’s its discretion, from time to time senior executives, advisors or as needed or required by the and independent auditors. The laws and regulations that govern directors may also request that the the Company. Company contract civil liability SQM’s Corporate Headquarters, Santiago, Chile. Photo credit: Freddy Concha. SQM Photography Contest.

86 87 BOARD OF DIRECTORS

DISCLOSURE 102-22/ 102-23 /102-18

The board of directors of SQM Article 9 of the bylaws indicates DISCLOSURE 102-30/ 102-32/ 102- 33 has eight full members. There that the Company will be The board is responsible for are no alternate board members. managed by the board of managing the Company and its Board members are elected for directors, composed of eight main duties include: three-year terms at the annual members. Series A shareholders shareholder meeting. The board will elect seven directors and • Developing the Company’s vi- can assign replacements for Series B shareholders will elect sion, strategy and objectives. vacancies that arise between one. Directors may or may not elections. If there is a vacancy, the be shareholders. At least one • Hiring and continuously eva- entire board should be elected of the eight directors must be luating the Chief Executive or re-elected at the next annual independent, as indicated under Officer and top-ranking exe- shareholder meeting. The current the Corporations Law. The cutives. board of directors was elected for chairman is elected by absolute • Identifying potential replace- a three-year term at the annual majority vote of the directors ments for the Company’s CEO shareholder meeting held on present and, in the event of a tie, and other senior executives April 25, 2019. On this date, the a new vote will be held in which who have the skills, knowle- following directors were elected: only directors elected by Series A dge, conditions, experience Alberto Salas M., Chairman of the shareholders may participate. and vision required for each Board; Patricio Contesse, Vice position. This is done to ensu- Salar del Carmen operations, Antofagasta Region. Chairman of the Board; Georges The efforts of the board and re that a succession plan is in de Bourguignion A., Director; its committees help to fortify place for the Chief Executive Hernán Büchi, Director; Laurence SQM’s corporate governance Officer and other top-ranking Golborne R., Director; Gonzalo and reinforce best practices at executives in the event of un- Guerrero, Director; Francisco the Company. No board member foreseen absence in order to Ugarte L., Director; Robert J. holds a managerial position within minimize impact on the Com- Zatta, Director. the Company. pany.

Approving new investments In addition, the board has three • over US$ 5 million. This does committees: Audit and Financial not include capital expenses Risk Committee, Corporate for maintenance included in Governance Committee and the investment plan approved Safety, Health and Environment annually by the board. Committee.

Nueva Victoria operations. Photo credit: Tomás Figueroa. SQM Photography Contest.

88 89 DISCLOSURE 102-32 DISCLOSURE 102 – 19/ 102-20

• Approving the annual budget. RISK-RELATED RESPONSIBILITY AND INTERNAL CONTROLS • Reviewing and approving the quarterly and annual financial The board is responsible for statements. determining the nature and scope of any significant financial risks • Approving the investment and that the Company may take on to financing policies to be pre- reach its strategic targets and for sented for shareholder con- soundly and effectively managing sent at the annual shareholder financial risks and internal control meeting. systems. Reviewing and approving the • DISCLOSURE 102-20/ 102-24/ 102-26/ 102-27/ sustainability report as well as 102 -28/ 102-29 examining perceptions of the All new directors will receive Company’s relevant stakehol- orientation on the Company’s ders regarding its usefulness lines of business, risks, policies, and acceptance. procedures, main accounting • Reviewing and approving an- criteria, sustainability and the The board is nual reports filed by the Com- legal framework applicable to pany in Chile and analyzing the Company and its board. responsible for and evaluating the convenien- Within 60 days of electing a new ce, timely filing and relevance board, members will receive determining the of these reports in order to a copy of certain documents nature and scope continuously improve infor- on the Company including the mation disclosed by the Com- bylaws, Code of Ethics, Manual of any significant pany. for Managing Market Sensitive financial risks that Information, Free Competition The chairman of the board’s main Policy, Sustainability Report, the Company may duties include: the most recent 20-F and take on in order to the Company’s most recent • Chairing board meetings. annual report. Along with the reach its strategic • Chairing shareholder mee- 20-F, the board receives a list targets and tings. of all material contracts and soundly manage • Casting the tie-breaking vote at board meetings. the organization.

90 91 DISCLOSURE 102-30/ 102-31 director training or separately. • Any improvement related to the Company’s disclosure of and a complete copy of the prior DISCLOSURE102-28 policies and procedures, en- year’s financial statements. The A formal training procedure is suring that disclosures are board of directors has access in place to foster the board’s easy for the public to unders- to the website, through which it professional development. The tand and published in a timely can access pertinent corporate board completes an evaluation manner. information including financial each year designed to promote statements, recent press releases Al término de esta evaluación, el efficiency and continuous issued by the Company and Directorio definirá las medidas improvement of the board its most important corporate de capacitación específicas que and evaluate its processes and policies. Management will crea se deben llevar a cabo y performance. The evaluation also meet with directors and considerará la asesoría de un may also be conducted by a third the appropriate members of experto ajeno a la compañía para party. As part of this process, the management to review business la detección e implementación board evaluates the Chairman affairs and risks, including those de esas eventuales mejoras. and Chief Executive Officer on related to sustainability, site the following aspects: visits and other informational At the end of this evaluation, the board identifies specific training sessions, as appropriate. The • Any area it believes should be measures that it believes it should board is provided a description examined to improve the effi- carry out. This process includes of relevant stakeholder groups ciency of the board and the advising by an external consultant in the sustainability report and Company; meets with the Sustainability and to detect and implement potential Community Relations Manager, • Any area that its members improvements. who explains each group’s could strengthen in order Annually, the board or a board importance and expectations in to continue enhancing their committee reviews the Corporate the interest of maintaining stable, personal performance on the board; Governance Policy. THE BOARD IS RESPONSIBLE long-term relationships. FOR APPROVING THE • Any organizational, social or As part of this process, the board COMPANY’S ANNUAL REPORT Likewise, the Risk Management cultural barriers that could be examines corporate governance AND SUSTAINABILITY REPORT. and Compliance Manager will THUS, ONGOING TRAINING IS inhibiting the natural diversity best practices implemented by arrange for at least one annual DESIGNED TO KEEP DIRECTORS of capabilities, visions, charac- other local and international INFORMED OF ALL RELEVANT training on corruption risks, teristics and conditions that entities. CHANGES TO LOCAL AND the Company’s Ethics and could have existed within the INTERNATIONAL REGULATIONS Compliance Program and free board without those barriers; ON INCLUSIVENESS, DIVERSITY, competition risks. Directors SUSTAINABILITY AND RISK must sign a document certifying • Considerations related to any MANAGEMENT. that they have taken part in this change in the board’s organi- training. This training session may zation or functioning in crisis be conducted jointly with new situations.

92 93 The board requests meetings with DISCLOSURE 102 – 22/ 102-29/ 102-35 • Examining and issuing an opi- internal and external counsel, AUDIT AND FINANCIAL RISK nion on risk reports from exter- as necessary, to explain the COMMITTEE nal auditors and the financial most important court decisions, statements prior to presenting administrative resolutions or The objective of the Audit and them for final approval from rulings related to the duties of Financial Risk Committee is to the board and shareholders. care, prudence, loyalty, diligence help the board fulfill its duties • Making proposals to the board and reporting that have been with respect to control and regarding the external audi- issued in local and international financial reporting matters. The tors, risk rating agencies and markets or that could impact the committee works to control the account inspectors to be pre- Company. Company’s maximum exposure to financial risk in accordance sented for shareholder approval at the shareholders’ mee- The board also makes a reasonable with defined policies. ting. effort to hold at least one meeting The committee is comprised of a year at or near the Company’s • Analyzing and preparing a re- three directors. Independence operational facilities. The board port on the transactions con- requirements under Chilean and visits at least one plant in order to tained in Section XVI of the NYSE regulations must be taken have a better idea of the state and Corporations Law, which re- into consideration in selecting functioning of that facility, the gulates transactions between committee members. main duties and concerns of those related parties. working at the office or plant This committee must meet at and any recommendations and • Examining the salary and Coya Sur operations. least four times per year. After improvements that, according to compensation plans for the Photo credit: Jeremy Hurtado. SQM Photography Contest. each meeting, the committee the people responsible for those Company’s senior executives will report on its activities to the offices and facilities, would help and employees. board. improve operations. The Audit and Financial Risk • Maintaining procedures for • Meeting with the risk and • Meeting with the external au- The committee acts in Committee is also responsible policies and controls for iden- compliance monitoring ma- ditors at least twice a year, and According to Article 17 of the accordance with article 50 bis for, among other duties: tifying, evaluating and defining nager at least twice a year, and more if necessary, to review bylaws, directors are to be of Law 18,046, which states the degree of exposure of the more if necessary, to review the annual audit schedule or compensated for their services. Analyzing company policy re- that the Audit and Financial Risk • Company’s financial risk. the risk management process, plan and possible differences Compensation for each lated to assessing and mana- recommendations and impro- detected in the audit in regard Committee is responsible for, • Meeting with the internal audit director and committees will be ging financial risk, including an vements, among other items. to accounting practices, admi- among other duties: manager at least twice a year, proposed annually by the board analysis of key financial risks nistrative systems and internal and more if necessary, to re- for subsequent shareholder and mitigation measures. auditing, among other items. approval at annual shareholder view the annual audit schedu- meetings. Board stipends shall le or plan, recommendations, be customary, reasonable and among other items. competitive.

94 95 SQM workers, Salar de Atacama operations, Antofagasta Region.

SAFETY, HEALTH AND ENVIRONMENT COMMITTEE

The purpose of the Safety, Health Its responsibilities include: porting Initiative” guidelines or health or environmental inci- • Reviewing the Company’s The SHEC will periodically report and Environment Committee other equivalent standards. dent that must be reported to handling of emergency res- key findings to the board. (SHEC) is to assist the board in • Periodically reviewing the the appropriate regulatory au- ponse planning procedures • Receiving and reviewing, at fulfilling its duties by reviewing Company’s safety, health, en- thorities. If deemed necessary, involving safety, health and least once a year, manage- and recommending policies vironment and sustainability committee members may call environmental matters. ment’s reports on complian- related to social, safety, health, policies and recommending a meeting with the personnel ce with the Company’s sa- • Receiving and reviewing, at environmental and sustainability changes to these policies to involved in order to gather fety, health, environmental least once a year, a report on matters affecting the Company. the board or management. additional information about and sustainability policies and the detected organizational, The board works to ensure the nature of the incident and applicable standards. social or cultural barriers that The SHEC is comprised of three that policies, indicators and a description of the remedial could inhibit the natural diver- directors, who meet at least four reports are defined in accor- • Reviewing management’s measures taken. sity that would have existed times a year, or more frequently if dance with international stan- monthly reports to the board without those barriers. necessary. dards such as the “Global Re- for mention of any safety,

96 97 CORPORATE GOVERNANCE an emergency. This list should DISCLOSURE 102-33/ 102-43/ 102-19 COMMITTEE take into consideration the skills, experience, indepen- The Company’s spokespeople The purpose of the Corporate dence and knowledge requi- for the market as a whole and Governance Committee is to red for the new position. specifically for communications assist the board in fulfilling media, are the Chairman of its duties by reviewing and • Ensuring that there is a pro- the Board, the Chief Executive recommending policies related per succession plan for the Officer, the Finance Senior to corporate governance matters chairman of the board based Vice-President and any other affecting the Company. on the skills, experience, in- person appointed to this task dependence and knowledge by the Chairman of the Board It is comprised of three directors required for the position. The or the Chief Executive Officer. who meet at least twice a year, or committee will do its best to However, the Company’s Investor more frequently if necessary. identify possible, suitable can- Relations and Communications Port of Tocopilla. didates to be proposed to the departments facilitate delivery of Photo credit: Eduardo Alcayaga. SQM Photography Contest. The committee’s responsibilities board. the information that SQM must include: provide certain people and the • Reviewing, at management’s communities where it operates. of several different mechanisms one person may consider relevant found on the website. In • Reviewing the corporate go- request, modifications to Specifically, the Investor Relations including its website, press will not be posted through other accordance with the rights vernance policy once per year communications intended for team manages the formal releases, Securities and Exchange channels. The board regularly and responsibilities inherent and recommending any chan- the Company’s shareholders, program of presentations to Commission (SEC) filings,receives summaries and feedback to the position of shareholder, ges it deems necessary. including institutional share- update institutional analysts and Financial Market Commission on meetings held as part of the the Company ensures that the holders and analysts as well as (CMF) filings, teleconferences and investor relations program and legally mandated information Reviewing compliance with shareholders on the Company’s • potential shareholders. web casts. The Company seeks reports from the Company’s on the Company’s economic, the corporate governance po- performance, its businesses, main to leverage its Investor Relations analysts. legal and financial position is licy once per year and ensu- • Reviewing any directors’ and risks as well as legal, financial section on its corporate website provided to shareholders and ring that applicable regulatory officers’ liability policy before and economic standing. The as a channel to post company- The Company regularly meets the general public in Spanish as requirements are being met. it is contracted by the Com- Company also publishes financial related information not previously with institutional investors well as in English. Specifically, As part of this process, the pany. results on a quarterly basis. published. The Company and analysts throughout the Company’s website includes board will examine corporate These results, presentations This committee will periodically encourages its investors, the the year during road shows its social responsibility and governance best practices im- and other press releases by the report key findings to the entire press and other interested parties with international investors, sustainable development policies. plemented by other local and Company are available on SQM’s board. to view the information it posts presentations at industry international entities. website. The Company’s Investor conferences, participation in The board analyzes and evaluates Relations team includes members on the Investor Relations section • Ensuring the Company has The Company is in constant activities with sell-side analysts the convenience, timeliness and with advanced English in order to of its website at http://ir.sqm. a proper succession plan in contact with institutional and meetings with individual relevance of annual reports filed respond to questions from non- com, since this information place for the CEO and other shareholders and analysts, as investors. Several senior in Chile and in the United States Spanish speakers. The Company may be considered relevant. senior executives. This will in- well as potential shareholders or executives must attend these in order to improve information discloses information to the Although the Company will do clude a list of possible candi- investors. events. disclosed by the Company to the public about itself, including its best to ensure that relevant dates available to replace the market. The board approves all its financial reports, corporate information will only be disclosed CEO if the board decides to All publicly-available information material event filings submitted by development, products and through these channels, it cannot remove him or in the event of on the Company can be the Company or it has the option business-related aspects by way guarantee that information that

98 99 of delegating this to the CEO. All The efforts of other press releases issued by the Company must be reviewed by the board and the Disclosure Committee, which its committees is comprised of members of senior management. The board, or its help to fortify respective committees, reviews SQM’s corporate the Company’s publication process in order to identify governance and opportunities for improving reinforce best information quality and reporting. If necessary, the board could hire practices at the the services of a third-party. Company. In keeping with the above, the Company also publishes a separate Sustainability Report, SQM’s complete Corporate which addresses its social and Governance Policy is available environmental performance. on the Company’s website www. Part of the Sustainability Report sqm.com includes identifying relevant stakeholders, the reasons why groups are classified as such and social responsibility and sustainable development indicators tracked by the Company.

Salar de Atacama operations. Photo credit: Aaron Araya. SQM Photography Contest.

100 101 ORGANIZATION

DISCLOSURE 102 – 22

CHAIRMAN VICE CHAIRMAN BOARD MEMBER BOARD MEMBER BOARD MEMBER BOARD MEMBER BOARD MEMBER BOARD MEMBER

ALBERTO SALAS M. PATRICIO CONTESSE F. GEORGE DE HERNAN BÜCHI B. LAURENCE GOLBORNE R. GONZALO GUERRERO Y. FRANCISCO UGARTE L. ROBERT J. ZATTA BOURGUIGNON A. Mining Engineer Lawyer Civil Engineer Industrial Engineer Lawyer Lawyer Business Administration Universidad de Chile Universidad Católica de Economist Universidad de Chile Universidad de Chile Universidad de Chile Universidad Católica de Merrimack College Chilean National Chile Pontificia Universidad Chilean National Chilean National Chilean National Chile Chilean National Chilean National ID: 6.616.233-0 Chilean National Católica de Chile ID: 5.718.666-6 ID: 8.170.562-3 ID: 10.581.580-8 ID: 10.325.736-0 ID: 48.211.511-K ID: 15.315.085-0 Chilean National Board member since ID: 7.269.147-4 He served on SQM’s board He is currently on the board of Master’s degree in business LL.M. from University of MBA in Finance from Fairleigh April 2018 Vice Chairman of the for several years until April Ripley Corp. S.A., Construmart administration from Universidad Chicago Law School. Partner, Dickinson University, he has following boards of directors: MBA from Harvard Business 2016. He is currently on the S.A., Aventura S.A. (Peru), Adolfo Ibáñez. He was legal Carey Abogados. Extensive held senior management Graduate degree in Corporate Sociedad de Inversiones School; he is co-founder and boards of Quiñenco S.A. and Sociedad Inversiones Arrigoni counsel and alternate director experience with Chilean positions at the former Finance from Universidad Pampa Calichera S.A., Potasios chairman of Asset Chile S.A. and S.A.C.I. Falabella, among other S.A. and Metalúrgica Arrigoni of Integramédica S.A. and on and international financialGeneral Foods Corporation Adolfo Ibáñez, Mining de Chile S.A, Sociedad de Asset Administradora General companies. He also chairs S.A., and is the chairman of the board of Inversiones Oro companies and institutions and Campbell Soup Company. Engineer, Universidad de Inversiones Oro Blanco S.A. de Fondos S.A. Over the last the board of Universidad del Tavamay S.A. (Paraguay). Blanco S.A., Asfaltos Chilenos in the area of mergers and He worked with Rockwood Chile Board Member of Cía. and Norte Grande S.A. He also ten years he has served on Desarrollo. Previously, he served as S.A., Vantrust Capital Asset acquisitions, financing, capital Holdings, Inc, was a board Minera Valle Central, CAP, serves on the board of Nitratos the boards of various Chilean a minister of the Chilean Management and SMA Clinica and debt offerings and other member of Nexeo Solutions, ENAP, ENAEX S.A. and Amerigo de Chile S.A. Currently, he is companies such as LATAM government from 2010-2012 Internacional S.A. (Perú). He is corporate matters. He also has Inc., and since 2017 has chaired Resources Ltd. He also chairs also the chairman of Invercap Airlines and Embotelladora and before that he was CEO of currently Executive Director of experience in management the Advisory Committee of the board of Universidad de S.A. and serves on its Directors’ Andina, where he remains on Cencosud S.A. and Corporate Guerrero y Asociados and sits positions at Bci Corredores de Silberman College of Business Chile’s Foundation of Mining Committee. the board. CFO of Gener S.A., among on the boards of Sanasalud Bolsa and Votorantim Andina. – Fairleigh Dickinson University. Engineers. He is currently the other positions at different S.A., SMA Clínica Internacional chairman of INACAP and sits on companies. S.A. (Peru) and Club Deportivo the board of ABAC. Palestino SADP.

The current board of directors was elected for a three-year period at the annual shareholder meeting held on April 25, 2019. As established in the Company’s corporate governance framework, anyone may contact the directors by email at directores@sqm. com. (The curriculum vitae of the directors have been summarized).

102 103 MANAGEMENT DISCLOSURE 102-9 SQM’s senior management consists of:

CHIEF EXECUTIVE FINANCIAL SENIOR LEGAL SENIOR POTASSIUM AND NITRATES LITHIUM AND IODINE PEOPLE AND PERFORMANCE OFFICER VICE-PRESIDENT AND CFO VICE-PRESIDENT COMMERCIAL SENIOR COMMERCIAL SENIOR SENIOR VICE-PRESIDENT VICE-PRESIDENT VICE-PRESIDENT RICARDO RAMOS R. GERARDO ILLANES G. GONZALO AGUIRRE T. NATALIA PIZARRO G. FRANK BIOT PABLO ALTIMIRAS C. Industrial Engineer Industrial Engineer Lawyer Civil Engineer Universidad Católica de Chile Universidad Católica de Chile Universidad Católica de Chile Master’s in Applied Economics Industrial Engineer Universidad de Santiago Chilean National ID: 8.037.690-1 Chilean National ID: 13.904.120-8 Chilean National ID: 13.441.419-7 University of Antwerp, Belgium Universidad Católica de Chile Chilean National ID: 14.167.897-3 BEL592009828/2054 Chilean National ID: 13.657.862-6

POTASSIUM AND LITHIUM NITRATES AND IODINE DIRECTOR OF DIRECTOR OF INTERNAL DIRECTOR OF RISK OPERATIONS SENIOR OPERATIONS SENIOR CORPORATE AFFAIRS AUDITING MANAGEMENT AND VICE-PRESIDENT VICE-PRESIDENT COMPLIANCE MARIA IGNACIA LÓPEZ B. RAÚL PUERTO M. CARLOS DÍAZ O. JOSÉ MIGUEL BERGUÑO C. FRANCISCO SÁNCHEZ V. Journalist Industrial Engineer Industrial Engineer Industrial Engineer Universidad Finis Terrae Pontificia Universidad Javeriana Industrial Engineer Universidad Católica de Chile Universidad Católica de Chile Chilean National ID: 10.777.962-0 de Colombia Universidad Católica de Chile Chilean National ID: 10.476.287-5 Chilean National ID: 10.903.992-6 Chilean National ID: 14.757.436-3 Chilean National ID: 15.381.281-0

NOTE: María Ignacia López B., assumed the position of Director of Corporate Affairs on October 14, 2019. In March 2020, before closing this 2019 Sustainability Report, Rodrigo Vera D. became Mine Operations Senior Vice President. He is an industrial engineer with a degree from Universidad Católica de Chile and his Chilean National ID is 9.120.446-0.

104 105 06

Our Values

106 107 OUR VALUES DISCLOSURE 102 - 16 Through our actions, we hold MISSION ourselves to values We are a global company with a team of people committed to that we promote excellence. Our activities focus on a daily basis in on the extraction of minerals, capable of being selectively our dealings with integrated in the processing and our shareholders, commercialization of products for industries essential for human employees, development. customers, suppliers, the

VISION environment and

We seek to be a global the community. company, recognized for its competitiveness, excellence and innovation in its lines of business, oriented towards EXCELLENCE the development of products essential for human development, within a framework of the highest standards of integrity.

SAFETY

INTEGRITY

108 109 OUR VALUES

EXCELLENCE SAFETY INTEGRITY • We are an organization that is • Caring for people’s safety is • Each day, we seek to do our constantly striving to achieve a priority commitment at the job with the high standards of better results, for the purpose Company that motivates us integrity described in the in- of creating shared value with daily to develop safe and acci- ternal Code of Ethics. At the shareholders, associates, cus- dent-free operations. same time, we are open to tomers, suppliers and com- and interested in identifying • We are responsible for crea- munities. and implementing better ways ting conditions under which to work that ensure and faci- • We strive to be creative, agile each job can be performed litate compliance with those and innovative in our work and safely and also for promoting standards. daily challenges. conduct that favors the physical safety and psychological • We promote respect and fulfi- • We develop our work in a fra- wellbeing of everyone who llment of each of the commit- mework of sustainability and works at SQM. ments made to shareholders, respect for the environment. customers, employees, regu- • Each person at the organiza- • We wish to build a culture of lators, communities, suppliers tion is responsible for taking excellence, throughout the and authorities. care of him/herself and other organization, based on the ten members of the team with principles of the M1 methodo- an uncompromising com- logy. mitment to safe conduct. We • We foster and value inter- promote open and ongoing nal meritocracy as the main feedback in order to identify path of professional grow- opportunities to improve sa- th, thereby favoring equality fety. of opportunity, inclusion and diversity. We seek to create opportunities for professional development so that people achieve their maximum po-

tential. Workers at Salar de Atacama operations, Antofagasta Region.

110 111 CODE OF ETHICS DISCLOSURE 102 – 16/ 102 – 17/ 102 – 20/ 102-25/ 205 -2 We have a Code of Ethics that The Ethics and Compliance The Ethics and emphasizes the commitment Department is responsible for made by the board, management updating and implementing the Compliance and all company employees to Code. It is also responsible for Department is ethical and transparent business answering questions about the practices. Code and the right way to do responsible for things. Moreover, this department managing any It sets forth the standards that we provides employees with must follow when conducting resources to help them make the possible conflict of business everywhere in the world. right decisions and abide by the interest between Code and applicable laws. The We ensure that we are doing our full text of SQM’s Code of Ethics is employees, job correctly with the right people available on the Company’s web and in a way that we are able page: www.sqm.com directors and third to create value for our people, parties. communities, business partners and shareholders.

Our Code applies to everyone, across the board, without exception. In addition, SQM has a Code of Conduct for Business Partners, which sets the integrity standards that business partners must meet when conducting any 100% business with us. OF OUR EMPLOYEES RECEIVE A COPY OF THE CODE

112 113 HUMAN RIGHTS ETHICS AND COMPLIANCE PROGRAM At SQM, we comply with all laws regarding fair working conditions, DISCLOSURE 102-16/ 102-17/ 205-2/415-1 salaries, maximum hours, child SQM has developed an Ethics labor and forced labor. Doing and Compliance Program that business correctly means that establishes a set of policies and we promote integrity at all our procedures that support the operations and we support positive standards contemplated in the human rights practices that are Code. This program and the Code free from worker exploitation. We establish a framework for our way prohibit child labor, forced labor of working and making business and any other similar practice. decisions for SQM. Working hours must be in line with the corresponding laws This program applies to all and employees must receive fair employees (male and female), compensation for their labor. Any executives and contractors human rights violation must be without exception. It is shared reported immediately to initiate through trainings and internal corrective measures. communication channels with all Our Code applies SQM employees. to everyone, across The Company has a Policies and the board, without Procedures Archive containing all the documents. Program exception. In compliance is monitored regularly by the Ethics and Compliance addition, SQM has Department. a Code of Conduct for Business Partners.

114 115 IN 2019, THE ETHICS AND COMPLIANCE PROGRAM REACHED A LEVEL OF MATURITY THAT HAS MADE IT POSSIBLE FOR MANAGEMENT TO FOCUS ITS EFFORTS ON CONTINUALLY PROMOTING A CULTURE OF INTEGRITY. Iodine plant workers, Nueva Victoria operations, Tarapacá Region.

The program contains a set starting new business relations to the Chief Executive Officer the ongoing and appropriate The Compliance Officer reports to of policies and procedures, with external partners, mergers, and heads up the Ethics and application of internal standards such as the Anti-Bribery and joint ventures; and due diligence Compliance Department, which related to the Ethics and the board of directors twice a year Anti-Corruption Policy; the procedures for hiring third is the area in charge of updating Compliance Program and help on matters regarding business risks, Free Competition Policy; the parties, such as suppliers, agents and supervising the Ethics and build a corporate ethics culture. Donation and Contribution, or distributors. Compliance Program and the Moreover, SQM has an internal compliance risks and the structure and Business Courtesy, Sponsorship Code of Ethics. Moreover, SQM audit area that is independent of functioning of the Ethics and Compliance and Membership Procedure; In order to ensure compliance has an Ethics and Compliance SQM’s management and acts as a procedures that regulate with the Code of Ethics and Committee and an Ethics and third line of defense. Program. relationships with public officials; the Ethics and Compliance Compliance Council , composed and the necessary due diligence Program, SQM has a compliance of members of management, policies and procedures for officer who reports directlywhose mission is to ensure

(1) The members of the Ethics and Compliance Committee are: the Director of Risk Management and Compliance, the Financial Senior Vice-President and CFO, and one lawyer from the Legal Division appointed by the Legal Senior Vice-President. (2) The members of the Ethics and Compliance Council are: the CEO, the Legal Senior Vice-President and the Director of Risk Management and Compliance.

116 117 SUPPORT AND COMPLAINT CHANNEL

DISCLOSURE 406-1/ 205-3

At SQM, we have a support and before continuing along the The complaint channel complaint channel available to all regular channels established constitutes a tool that allows for SQM workers around the world in the internal investigation reporting violations of company and also to third parties. Parties procedure. SQM is committed policies as well as inappropriate may lodge complaints through to ensuring compliance with behavior in general. Through the channel on the website the principles related to the this channel, SQM has received https://sqm.ethicspoint.com or complaint channel, which are: reports of sexual harassment, on- by calling the numbers available confidentiality of complaintsthe-job harassment, etc. in the countries where we have lodged; a no retaliation policy; our main commercial offices. and anonymity, in countries The Ethics and Compliance where this is permitted under Department is responsible for In 2019, 93 complaints were law. No complaints were made following up on all reports of received, all of which were regarding cases of discrimination possible violations of the Code reviewed by the Ethics and or human rights abuses. and SQM’s internal guidelines. Compliance Department

COMPLAINTS BY TYPE

Conﬂicts of interest 7

IF AN EMPLOYEE, CONTRACTOR OR THIRD PARTY SEES A SITUATION THAT COULD INFRINGE ON OUR CODE OF 100% 36 28 ETHICS OR PROGRAM, HE/SHE HAS THE OF COMPLAINTS WERE COMPLAINTS WARRANTED DISCIPLINARY MEASURES DUTY TO REPORT IT. ANALYZED BY THE TEAM IN AN INTERNAL WERE APPLIED. CHARGE. INVESTIGATION.

118 119 COMPLIANCE INITIATIVES

DISCLOSURE 102-17/ 205-1/ 205-2 The Ethics and Employee training addressing the Additionally, in order to Code of Ethics, applicable anti- strengthen the Ethics and Compliance corruption laws and program Compliance Program, we offer Department policies and procedures are distribution channels specifically fundamental parts of our Ethics for the Compliance Department is responsible and Compliance Program. and on-line trivia contests, for providing which present challenges and In 2019, we held in-person questions related to our Code of permanent training with a significant number Ethics and the program’s policies of employees at all SQM sites in advising to all and procedures, and have high Chile and most of our commercial employee participation rates. SQM workers and offices. In addition, training sessions via e-learning were held The Ethics and Compliance interested third with SQM’s high-risk suppliers Department monitors and tests parties. and contractors. implementation and effectiveness of our Ethics and Compliance The Ethics and Compliance Program, to minimize the risks Department held in-person associated with Law 20,393 training with all SQM board and the FCPA, such as bribery members. This department between private parties, bribing is responsible for keeping all public officials, and tampering directors informed about the with accounting records. Company’s main policies and procedures.

31 PROCESSES WERE CONDUCTED IN CHILE AND AT TWO COMMERCIAL OFFICES ABROAD TO MONITOR IMPLEMENTATION OF THE ETHICS AND COMPLIANCE PROGRAM IN 2019

Salar de Atacama operations, Antofagasta Region.

120 121 To foster integrity, SQM is part of Fundación Generación Empresarial, an organization that promotes business principles, values and best practices, supporting companies in the management of a business ethics culture. In 2019, we participated again in the “Barometer on Values and Business Ethics,” with over 600 employees taking part.

SQM participated in the “2019 Barometer on Values and Business Ethics” organized by Fundación Generación Empresarial.

654 EMPLOYEES RECEIVED IN-PERSON TRAINING. 623 EMPLOYEES TRAINED THROUGH E-LEARNING OR VIDEO.

Sur Viejo, Nueva Victoria operations, Tarapacá Region.

122 123 ABOUT OUR SUSTAINABLE DEVELOPMENT POLICY AND DIVERSITY AND INCLUSIVENESS POLICY DISCLOSURE 102 – 11/ 102 - 16

San Pedro de Atacama. Photo credit: Cristián Donoso. SQM Photography Contest.

In September 2019, the The scope of this policy includes a view to preserving ecological Company revised its Sustainable our stakeholders: Employees, balance while caring for people Development Policy with a view contractors, suppliers, and their surroundings. to reaffirming and updating its shareholders, customers, commitment to its actions, so communities, the environment. The concept of sustainable that they are sustainable in terms development involves meeting of our stakeholders and the We have defined our Sustainable the needs of today’s generations environment, while also ensuring Development Policy as a series without compromising the ability we conduct our business of measures upheld by SQM of future generations to meet according to the principles of that are aimed at creating an their own needs. continuous improvement of organization-wide culture our environmental and quality of sustainability in which the management system. Company and its employees efficiently and responsibly manage natural resources, with

Salar de Atacama operations. Photo credit: Aaron Araya. SQM Photography Contest.

124 125 SUSTAINABLE DEVELOPMENT At SQM, our commitment to POLICY sustainability is far-reaching and DISCLOSURE 102-11

We are a global company engaged We foster labor relations based on regulations and providing agreement, where we are all part unwavering, acting with concern and in industries that are essential respect, generating the conditions assistance and service to ensure of a common goal. In this spirit, respect for people, the environment and for human development, such necessary for each person to a mutually beneficial, long-term, we have defined the following as health, food, clean energy develop their skills. We value collaborative relationship. We priority areas: education, social the community in everything we do. As and technology. Our experience meritocracy and always favor maintain a Quality Management inclusiveness, entrepreneurship, a company, we are committed to and knowledge have earned us equal opportunity, inclusiveness System to accomplish this. reviving historical heritage and a global leadership position in and diversity, non-discrimination sustainable development. complying with high standards and, in specialty plant nutrition (SPN), and respect for human rights. We promote continual turn, are always seeking new challenges iodine and derivatives, lithium improvement of our performance and derivatives, and industrial We are committed to protecting in terms of safety, health, to continue improving sustainability chemicals. We also participate in the environment and responsibly the environment, quality and at SQM. the potassium market. We reach managing the natural resources community relations. diverse markets on time with our we use, complying with our products and deliver quality to commitments, focusing and This continual attention to our our customers. planning all of our work to daily work enables us to promptly prevent and minimize impact on develop and implement any To give life to products that are the surroundings, the ecosystem prevention plans and control strategic for human development, and future generations. We measures necessary, integrating we base our actions on the constantly strive to reduce the innovation and ground- values that guide our conduct: use of raw materials, control breaking solutions, thanks to the Excellence, safety and integrity, our air emissions, particularly ongoing search for continuous expressed in our Code of Ethics, greenhouse gases, and avoid improvement under the Lean M1 which applies to everyone at generating waste or ensure methodology. SQM. This Code calls us to follow it is properly managed. We strict standards to ensure proper continuously monitor our Likewise, we maintain a close corporate governance and a Environmental Management relationship with communities robust risk management system, System to ensure optimal near our production facilities fully complying with current laws environmental performance. and participate actively in their and regulations, in addition to development. We engage in an commitments and domestic and We are accountable to our open, ongoing and transparent international standards that we customers, delivering high-quality manner with neighbors through voluntary undertake to meet. products that meet committed programs and initiatives developed standards and applicable with their participation, by mutual

Students visiting port facilities in Tocopilla.

126 127 DIVERSITY AND INCLUSIVENESS POLICY

We are a global company, with employees from over 30 different countries, that aims to generate the opportunities and conditions necessary for each person to develop their skills in a cordial, respectful and receptive environment. Therefore, we commit to:

• Promoting an internal culture of diversity, non-discrimination and respect.

• Fostering equal opportunity, valuing and evaluating people based on their merit, performance and effort to generate value.

• Adapting workplace conditions and spaces, as needed, to facilitate the gradual incorporation of people with disabilities.

Inclusive entry way, SQM offices, Antofagasta. • Continuously challenging selection and evaluation processes to facilitate meritocracy and attract, develop and retain talented people.

• Forming heterogeneous work teams with people who share a common purpose at SQM and always seek excellence.

• Broadening female participation at all levels and areas within the organization and to increase local hiring at our operating facilities.

SQM participating in Inclusiveness Expo.

128 129 Fundación Corresponsable award ceremony in Spain.

RECOGNITION • Spain’s Fundación Correspon- • SQM was awarded a SHE Ex- • The Antofagasta Industrial • We were also honored by • In María Elena, the Humani- IN 2019 sable honored the “Atacama cellence Gold Medal by the Association (Asociación de School E-26 in San Pedro de ties and Science Professio- Tierra Fértil” Program for its International Fertilizer Asso- Industriales de Antofagasta) Atacama for our contribution nal Technical High School contribution to the local de- ciation (IFA) in recognition of recognized SQM in the cate- to furthering the arts and cul- also recognized us for having • The Nitrates Museum Founda- velopment of the communi- its ongoing commitment to gory of “Technological Con- ture in the school community. supported the educational tion, as part of its celebrations ties of Quillagua, San Pedro the principles of safety, health tribution” for the Ecocharger efforts undertaken at their es- for having been placed on • SQM was recognized by the de Atacama, Toconao, Talabre and environment promoted by project for electric cars, a so- tablishment. UNESCO’s List of World He- Government of Chile for ha- and Socaire. In these towns, the association. lar-powered system that aims ritage in Danger, recognized ving helped out during the cli- • In Quillagua, the officials of SQM’s multidisciplinary team to develop and foster electro- SQM for its ongoing commit- • Iquique’s 7th Company of Fi- matic emergencies that affec- the patron saint festivities re- of professionals has organized mobility at the Salar del Car- ment to the foundation. SQM refighters bestowed a token of ted the districts of San Pedro cognized SQM for having res- diverse agricultural projects men site. also sits on the foundation’s their appreciation to SQM in de Atacama and Calama. The tored the images of Saint Mi- alongside local residents. board. recognition of the support it Ministry of Mining handed out chael the Archangel and the provided to them for purcha- this recognition. Virgin of the Rosary. sing firefighting equipment.

130 131 07

Our People

132 133 OUR PEOPLE DISCLOSURE 102-8 DISCLOSURE 103-1/ 103-2/ 103-3 TOTAL EMPLOYEES BY STAFF TYPE, EMPLOYMENT CONTRACT, GENDER AND REGION AS OF We put a great deal of effort At SQM, our employees are our most DECEMBER 31, 2019 into our selection and recruiting Executives Supervisors General systems in order to build teams important asset. That is why we work to of diverse individuals and Open-term Fixed-term Open-term Fixed-term Open-term Fixed-term foster their professional development Region contract contract contract contract contract contract actively address issues such as Men Women Men Women Men Women Men Women Men Women Men Women inclusiveness and women in and permanency with the Company. Metropolitan 70 15 0 0 247 149 4 4 70 39 0 2 mining. In fact, given the unique Region attributes of our industry and Tarapacá 12 0 0 0 168 26 9 1 813 30 30 5 SQM in particular, our Company is Region Antofagasta made up of a team of individuals 28 5 0 0 647 194 11 6 2,246 273 95 18 Region from different professions and trades, operators and technicians, Other Regions 0 0 0 0 25 13 1 0 6 11 1 0 men and women of different ages, Foreigners 5 0 0 0 264 146 2 0 43 6 1 0 each of whom contributes their 5,741 individual capacities, experience PEOPLE MAKE UP SQM’S Total 115 20 0 0 1,351 528 27 11 3,178 359 127 25 5,741 and skills to the Company’s WORKFORCE IN CHILE AND development. ABROAD AS OF DECEMBER 2019. NOTE: The Company has four part-time workers: three with open-term contracts, (two in Antofagasta—one male and one female— and one foreign male worker) and one male worker with a fixed-term contract in Antofagasta. People are the foundation of our company and, therefore, are very important to SQM. This conviction has motivated us to develop an TOTAL EMPLOYEES BY EMPLOYMENT CONTRACT AND PERCENTAGE IN 2019 area specifically concerned with employee wellbeing, benefits Contract Type Number of Employees % and professional development, Open-term contract 5,551 97% among other related topics. Fixed-term contract 190 3%

Total 5,741 100% The different positions within SQM are organized into: general staff, supervisory staff and executive staff. These groups of workers make up multidisciplinary teams and carry out duties at different 12,685 production, commercial and JOBS administrative facilities.

134 135 SQM EMPLOYEES BY CATEGORY, GENDER AND PERCENTAGE IN CHILE AND ABROAD IN 2019

16.4% 14.8% 28.1% 10.4% 943 20 539 384

TOTAL SQM EXECUTIVES SUPERVISORS GENERAL 5,741 135 1,917 3,689

83.6% 85.2% 71.9% 89.6% 4,798 115 1,378 3,305

Women Men

SQM EMPLOYEES BY CATEGORY AND PERCENTAGE IN CHILE IN 2019

SQM Employees by Category in Chile Number of Employees %

Executives 130 2.5%

Supervisors 1,505 28.5%

General 3,639 69.0%

Total Chile 5,274 100,0%

136 137 DISCLOSURE 202 - 2

MAIN REGIONS WHERE EMPLOYEES WORK BY CATEGORY AND PERCENTAGE IN 2019

No. No. No. Region % % % Executives Supervisors General

Employees in the Tarapacá and Antofagasta Regions out of Total 45 33.3% 1,062 55.4% 3,510 95.1% Number of Employees

Employees in the Metropolitan Region out of Total Number of 85 63.0% 404 21.1% 111 3% Employees

62.7% OF ALL EMPLOYEES WORKING IN THE TARAPACÁ AND ANTOFAGASTA REGIONS RESIDE IN THOSE REGIONS

Sites % Employees % Executives

Tarapacá Region and Antofagasta 62.7% 84.8% Region

84.8% OF EXECUTIVES WHO WORK IN THE TARAPACÁ AND ANTOFAGASTA REGIONS RESIDE IN THOSE REGIONS.

SQM Emergency Brigade, Salar de Atacama operations, Antofagasta Region.

138 139 DISCLOSURE 102-8

EMPLOYEE STATISTICS AS OF DECEMBER 2019

SQM provides an annual average of 12,685 jobs in Chile and around the world, including Company personnel and contractors.

467 EMPLOYEES ARE FOREIGNERS

6,944 CONTRACTORS ANNUALLY ON AVERAGE IN 2019 5,274 OF ALL SQM EMPLOYEES WORK IN CHILE 943 WOMEN WORK AT SQM IN CHILE AND AROUND THE WORLD 5,741 TOTAL NUMBER OF DIRECT SQM EMPLOYEES IN CHILE AND THE WORLD

140 141 DISCLOSURE 405- 1 PEOPLE WHO ENTERED THE COMPANY IN CHILE IN 2019 BY AGE GROUP AND GENDER PERSONNEL IN CHILE AND OVERSEAS BY AGE GROUP, GENDER AND GEOGRAPHIC DISTRIBUTION AS Distribution Men Women OF DECEMBER 31, 2019 Under 30 247 87 Number of Distribution Tarapacá Antofagasta Metropolitana Other Regions Overseas % Employees 30 - 40 256 67

Men Women Men Women Men Women Men Women Men Women Total 41 - 50 123 23

Over 50 51 7 Under 30 99 19 475 120 53 42 0 4 83 29 924 16.1% Total 677 184 861

30 to 40 415 28 1,106 230 158 87 12 12 117 61 2,226 38.8%

41 to 50 295 10 779 99 102 56 15 3 84 43 1,486 25.9% PEOPLE WHO LEFT THE COMPANY IN CHILE IN 2019 BY AGE GROUP AND GENDER 51 to 60 184 4 492 42 58 13 4 5 24 18 844 14.7%

Distribution Men Women 61 to 70 39 1 169 5 15 11 2 0 7 1 250 4.4% Under 30 92 28

Over 70 0 0 6 0 5 0 0 0 0 0 11 0.2% 30 - 40 168 54

DISCLOSURE 401-1 41 - 50 101 23 2019 TURNOVER BY AGE GROUP AND GENDER IN CHILE, ALL Over 50 55 9 ABSENTEEISM, TURNOVER CONTRACT TYPES Total 416 114 530

The 2019 SQM absenteeism rate Distribution Men Women was 3.0%, including workers Under 30 23.8% 30.3% overseas. The rate was 2.9% for 30 - 40 13.2% 18.3% men and 3.0% for women. 41 - 50 10.0% 14.7% 13.7% The 2019 absenteeism rate for Over 50 6.0% 11.9% COMPANY’S TOTAL employees in Chile reached 3.1%, Total 12.6% 20.0% 13.7% TURNOVER broken down by gender, the rate RATE IN CHILE IN 2019 was 3.1% for men and 3.5% for women.

142 143 08

Participation and Inclusiveness

144 145 PARTICIPATION AND INCLUSIVENESS

Iodine plant, Nueva Victoria operations, Tarapacá Region.

The year 2019 was marked looks to create the opportunities SQM is working on adapting by great progress in terms of and conditions necessary for its workplace conditions and inclusiveness at our Company. each team member to develop spaces to facilitate the gradual We launched our Workplace personally and professionally. incorporation of people with Diversity and Inclusiveness Policy disabilities. Initiatives are aligned and worked hard to involve our This policy fosters equality and with the Inclusiveness Law, people in the policy. encourages us to value and which mandates that 1% of evaluate people on the basis of every company’s employees This policy covers all levels of the their merit and performance. be persons with disabilities. organization and seeks to generate The Company’s goal is to go equality and opportunities for During the reporting period beyond legal requirements by all with the understanding that we have also improved our providing opportunities for SQM employs people of different selection processes to facilitate people with disabilities to join the ages, 30 nationalities, men and meritocracy, thereby attracting workforce, with equal rights and women from communities near diverse, talented people to the responsibilities. its operations, and workers with organization that are open to disabilities. For all employees, it developing their skills.

146 147 As of year-end 2019, there AN INCLUSIVE PRACTICE Our Company’s were a total of 54 persons with An individual’s first on-the- disabilities working at SQM, which goal is to provide job experience is always very is more than the current 1% legal important and tends to make a opportunities requirement. mark on students; at SQM, this for people with process is part of our corporate PRO-INCLUSIVENESS volunteer program since our very disabilities to join INITIATIVES own male and female workers the workforce, SQM took part in the Santiago become mentors for the interns and Antofagasta Inclusiveness assigned to their areas. In 2019 thereby creating Expos, which were opportunities alone, the Company received equality of to promote the wellbeing and 332 interns (120 women and 212 work of people with disabilities. A men) who worked at various SQM rights and total of 20 companies and more production sites and offices. than 1,000 visitors participated in responsibilities. the Antofagasta event. In the summer of 2019, the IT department at Coya Sur hosted At the inclusiveness event, we the Company’s first intern with offered seven job openings for a slight cognitive impairment people with disabilities, and SQM’s for two months. The intern’s People team gave a workshop disability did not prevent him from on employability designed to communicating with his peers, Students from INACAP Iquique visiting Nueva Victoria operations, Tarapacá Region. develop participants’ soft skills for making trust-based relationships job interviews. or taking on responsibility. The area prepared in advance to be able to work with people with cognitive disabilities and has also been trained in sign language. This is the second year that this area has hosted special needs students.

Special activity to celebrate “Intern Day”.

148 149 EXPANDING THE FEMALE ALL HANDS ON DECK FOR WORKFORCE INCLUSIVENESS representatives from the Ministry We aim to have One of our goals is to form of Mining, Ministry of Women Included among the activities points and sidewalks, including station that was installed in one heterogeneous teams and expand and Gender Equity and a large a 20% female to successfully implement our automatic doors and handrails. of the restrooms for increased the female workforce at all levels number of mining companies, workforce by 2021. Diversity and Inclusiveness Policy Support rails on elevators and comfort and peace of mind for throughout the organization. aims to increase average female were construction projects to a handicap bathroom were women working at the Santiago At the end of 2019, 16.4% of participation in mining in Chile to improve access for persons with installed at the corporate offices offices. our workforce was female 18% by 2025. Since we are already disabilities at several of our sites, in Santiago. (amounting to 943 women). close to meeting this target, at and measures to enhance quality Additionally, some improvements This figure is much higher than SQM we have set a goal of 20% of life for nursing mothers. Areas created with a view to were made to the María Elena the rest of the mining industry, by 2021. reinforcing gender equity also preschool (run by SQM) in order to where on average the female Several improvements were benefited from this suite of bring it up to Chilean government workforce is 12%, according to made to the Antofagasta offices improvements. One such benefit (JUNJI) code. Beginning in March the Women in Mining Working such as an extension to the dining for mothers was a new infant 2019, this preschool began Group. This group, made up of hall, and enhancements at entry feeding room and a changing operating on 7x7 day shifts in

150 151 order to serve children whose parents work that shift. “Executive suite” cabins were set up as a TOOLS FOR INCLUSIVENESS housing option at this same site. With house-like features, female SQM also works with several employees will have a place institutions on the social to live with their small children integration of people with (under the age of two) without physical and intellectual breaking the mother-child bond. disabilities and people diagnosed with Autism At the same time, and in order Spectrum Disorder (ASD). to involve our employees in this One example is its joint work culture of inclusiveness, lectures with Fundación Teaustimo are being held to familiarize through the “Carreteando workers with the concept of por el Desierto” (Partying inclusiveness and boost their Through the Desert) program. understanding and empathy. This initiative enabled us to We will continue holding these provide education and health lectures throughout 2020 in order professionals in María Elena to reach out to a larger number with tools and good practices of workers while also providing to help screen children for ASD information that is helpful to this at an early age. The program endeavor. also has an on-site phase to

DISCLOSURE 401-3 train those closest to a person with autism in order to improve PATERNITY AND MATERNITY 15% their quality of life. LEAVE IN 2019 OF SQM EMPLOYEES IN CHILE ARE WOMEN Maternity leave 24

Parental 24

NOTE: Only women used this type of leave in 2019.

152 153 DISCLOSURE 102 - 41 / 402-1/ 407 -1 EMPLOYEE RELATIONS

Cooperation and respect by to explain the origin and expected María Elena, Pedro de Valdivia, The Company and between our workers is effect of any issues such as those Coya Sur, Salar de Atacama, fundamental, which is why related to general company Salar del Carmen, Nueva Victoria, regularly reviews we meet regularly with our policies or operating changes Tocopilla, Antofagasta and all of the benefits employees to maintain and that may affect workers and their Santiago. In 2019, the Company foster smooth and collaborative compensation. Notice is given closed new collective bargaining it provides its relations. based on the degree of impact. In agreements with five unions employees in the event of a significant change, before the prior agreements We also engage in collective notice is usually given more than expired. order to make bargaining processes to address two months in advance. diverse topics such as wage 66.9% of all SQM employees in improvements as adjustments and benefits and As of December 31, 2019, the Chile are covered under collective necessary. other matters of interest to Company had 21 unions, which bargaining agreements. workers and the Company. The represent 61.1% of all employees, Company has a general policy of who work primarily at its main meeting periodically with unions production centers in Chile:

154 155 DISCLOSURE 102 -36/ 401-2

THINKING OF OUR PEOPLE Special leave: death, marriage, Gift upon the birth of a son or We care about the wellbeing of • • moving and mammograms or daughter for employees with our workers and their families. prostate screenings. open-term contracts. Accordingly, the Company has an area exclusively devoted to • Life insurance for each em- • Special celebrations (Father’s managing the benefits we provide ployee that covers natural or Day, Mother’s Day, Women’s our male and female workers accidental death and disability. Day, Secretary’s Day, Mining alike. This area is responsible for Day and Labor Day). monitoring and coordinating • Supplementary health insu- employee benefits so that each rance. • Box of traditional Christmas foods for each employee and member of the organization is • Catastrophic health insurance. served in a timely and efficient his or her family. • Dental insurance. manner. • Christmas gifts for sons/dau- • Termination benefits in case ghters and/or dependents un- SQM provides a variety of benefits of employee resignation with der 12 years of age. to employees with open-term varying benefits based on po- contracts. Some of these benefits • Birthday gifts for all employees sition. are legal obligations while others with open- or fixed-term con- are given at the Company’s • University scholarships for tracts. initiative or are optional for employees’ children who de- • The Company adjusts salaries employees. There are also monstrate academic excellen- annually, in September, based additional benefits that are ce. on a comparative compensa- included under each individual • University and graduate-level tion study of companies from collective bargaining agreement, scholarships for outstanding comparable industries. This based on the unions’ specific employees. ensures fair and transparent WE ARE CONCERNED WITH interests and membership. salaries for non-unionized PROVIDING GOOD CONDITIONS • Group Voluntary Retirement FOR OUR WORKERS WHILE THEY employees. Our benefits include: Savings (APVG) Agreement to PERFORM THEIR ROLES AT THE COMPANY’S FACILITIES. IN THIS encourage employees to save • Preferential plans are offered National holiday and Christ- SPIRIT, WE ARE CONSTANTLY • for retirement. SQM partially under agreements with gyms IMPROVING THE INFRASTRUCTURE mas bonuses. matches employee contribu- and telephone companies. AND SERVICES PROVIDED AT tions. ACCOMMODATION FACILITIES AND • Special bonuses: education, OFFICES. funeral assistance, marriage and birth.

156 157 DISCLOSURE 401-2

In 2019 we made several • Bus station and emergency • Healthy eating pilot imple- improvements to our rooms staff. mented by Universidad de An- accommodation facilities. Some tofagasta students doing their Artificial turf on the Andino of these were aimed at boosting • internship in nutrition at the playing fields was replaced. employee comfort, while others María Elena dining hall. were related to recreation and SALAR DEL CARMEN SITE: Clinical laboratory and X-ray wellbeing. • facility at the María Elena Hos- • Dining hall expanded Additionally, some improvements pital open seven days a week. or benefits were extended to • Changing rooms expanded • Accreditation of María Elena the María Elena community as a Hospital. result of the Company’s ties with • Capacity of water storage its neighbors. tanks in the dining facility was NUEVA VICTORIA SITE: increased.

SALAR DE ATACAMA SITE: MARÍA ELENA SITE: • Thirty rooms expanded at Iris Camp. • Sidewalks connecting the en- • Small soccer field at the Pam- tire Andino accommodation • Outdoor barbecue area insta- pinos accommodations facili- facility. lled at Iris Camp. ty was fixed. • Rooms were remodeled for • Artificial turf replaced on the • Artificial turf was replaced on Workers at Salar de Atacama operations, Antofagasta Region. use exclusively by female em- playing fields at Iris Camp. the playing fields located at ployees. the Guggenheim accommo- • A women’s changing room • Recreation and events room dations facility. installed in the mine area. for female employees. • Health care plans for seniors TOCOPILLA: • Music room. free of charge at the María Ele- na Hospital. • Improvements made to the • Gym for contractors. beds, furniture, children’s pla- • Road-side accident service ying area, bathrooms and ligh- • Bike path. along Route 5 within the María ting at Indígena Camp, which Elena community limits during is a recreational center owned • Outdoor barbecue area. the hours the municipal health by the Company. clinic is closed. • Kiosk. • Roof repair program for ho- • Game room. mes located in the town of María Elena. Port of Tocopilla. Photo credit: Claudio Gallegos. SQM Photography Contest.

158 159 DISCLOSURE 404-2

117 EDUCATION SCHOLARSHIPS AWARDED IN 2019

Given the priority the Company places on the professional and educational development of its employees and their children, SQM’s Excellence Scholarship program has granted 980 scholarships since created.

A total of 117 scholarships were awarded in 2019 to individuals who demonstrated outstanding academic effort and dedication.

Types of Scholarships 2019 2018 2017

University and graduate-level scholarships for SQM employees 47 45 44

Academic excellence scholarships for sons and daughters of employees 70 64 61

MISQM 117 SCHOLARSHIPS In 2019, in order to be more in This development is very much AWARDED IN 2019 70 touch with our employees, we appreciated by our employees ACADEMIC implemented MISQM, which since they no longer have to EXCELLENCE SCHOLARSHIPS 47 employees can download on spend their own time requesting AWARDED TO SCHOLARSHIPS their cell phones to stay informed personal paperwork at the human CHILDREN OF AWARDED TO SQM and in contact. MISQM can resources office. EMPLOYEES EMPLOYEES 980 be used to process payments, EDUCATION manage vacation time, request SCHOLARSHIPS certificates, grant awards, among GRANTED TO other tasks. EMPLOYEES AND THEIR CHILDREN AS OF DECEMBER 2019

160 161 DISCLOSURE 404-2 BRINGING TRAINING CLOSER MOBILITY PROGRAM TO OUR EMPLOYEES

SQM’s nine-year-old mobility This generates benefits in terms In 2019, SQM launched an on- program is a corporate practice of organizational culture, such as: +400 line training website www. sqmaprende.com for its centered around promoting the WORKERS CHANGED JOBS IN professional development of our • Encouraging good perfor- 2019 employees. This tool is available employees through recognition mance and meritocracy. to all company employees as a and opportunities to grow within centralized hub where they can • Retaining and rewarding the the Company, according to their download new material/content best talent. skills, abilities and experience. required to do their jobs. The • Reinforcing commitment and training portal can be accessed Employees holding general and motivation. from any device, anywhere. supervisory positions may apply • Favoring opportunities for to positions published on SQM’s The tool also features interactive personal development. intranet and opt for promotions videos to enhance content or make lateral shifts from one • Increasing employability by learning. department to another. Job providing learning opportuni- After having completed the openings are only posted in- ties within the organization. house in order to promote course, students receive a • Enriching the Company throu- employees or give them the certificate of completion gh collaboration among areas. opportunity to work in other areas showing that they met the course requirements. that may require their expertise. • Strengthening the idea that people are valuable assets for Some of the courses available the Company. on the platform include: SQM SQM believes that mobility and Corporate Orientation, Defensive the development of people are Driving, M1 Tools for Safety, Plant possible when complemented by Maintenance Skill Matrix, Phishing training and recognition. Awareness Training, SAP Support Material, and others. Year 2019 2018 2017

Number of employees who have changed jobs thanks to the internal 401 284 132 mobility program

162 163 WORKPLACE TRAINING DISCLOSURE 404 – 1/ 404-2

At SQM our workers are constantly trained on matters related to their jobs with a view to supporting 5,565 their professional development SQM EMPLOYEES TRAINED IN CHILE and performance excellence.

The main training topics during the period were: risk prevention (legal certification and corporate 91,604 standards), techniques and skill TRAINING HOURS matrix, e-learning orientation, skill development, technology and language courses. ThUS$690 Salar de Atacama. INVESTED IN EMPLOYEE Photo credit: Marco Garay. SQM Photography Contest. TRAINING

164 165 AVERAGE TRAINING HOURS PER Total Training Employee No. of Employees Hours, All Indicator EMPLOYEE AND CATEGORY Category 2019 Employees, 2019

DISCLOSURE 404-1 Operators 40,357 2,067 19.5

Administrative staff 965 119 8.1

Executives 2,367 106 22.3

Professionals 26,109 1,623 16.1

Technicians 21,806 1,650 13.2

91,604 5,565 16.5

Total Training Employee No. of Employees Hours, All Indicator Category 2018 Employees, 2018

Operators 33,619 1,926 17.5

Administrative staff 1,708 109 15.7

Executives 1,771 113 15.7

Professionals 21,631 1,498 14.4

Technicians 24,727 1,522 16.2

83,456 5,168 16.1

Total Training Employee No. of Employees Hours, All Indicator Category 2017 Employees, 2017

Operators 22,353 1,935 11.6

Administrative staff 626 134 4.7

Executives 1,620 158 10.3

Professionals 18,805 1,257 15.0

Technicians 18,429 1,392 13.2

61,833 4,876 12.7

Heap leaching, Nueva Victoria operations, Tarapacá Region.

166 167 AVERAGE TRAINING HOURS PER Employee Total Training Hours, No. of Female AVERAGE TRAINING HOURS PER No. of Male Indicator Employee Total Training Hours, Category Female Employees, 2019 Employees 2019 Employees, Indicator FEMALE EMPLOYEE MALE EMPLOYEE Category Male Employees, 2019 2019 Operators 6,325 102 62.0 DISCLOSURE 404-1 DISCLOSURE 404-1 Operators 34,032 1,965 17.3 Administrative 500 72 6.9 Administrative staff 465 47 9.9 staff Executives 1,891 85 22.2 Executives 476 21 22.7 Professionals 19,814 1,148 17.3 Professionals 6,295 475 13.3 Technicians 19,445 1,410 13.8 Technicians 2,361 240 9.8 75,647 4,655 16.3 15,957 910 17.5

No. of Male Employee Total Training Hours, No. of Female Employee Total Training Hours, Indicator Employees, Indicator Category Female Employees, 2018 Employees 2018 Category Male Employees, 2018 2018 Operators 1,688 82 20.6 Operators 31,931 1,844 17.3 Administrative 998 66 15.1 Administrative staff 710 43 16.5 staff Executives 1,529 92 16.6 Executives 242 21 11.5 Professionals 16,213 1,068 15.2 Professionals 5,418 430 12.6 Technicians 23,064 1,302 17.7 Technicians 1,663 220 7.6 73,447 4,349 16.9 10,009 819 12.2

No. of Male Employee Total Training Hours, Employee Total Training Hours, No. of Female Employees, Indicator Indicator Category Male Employees, 2017 Category Female Employees, 2017 Employees 2017 2017

Operators 366 42 8.7 Operators 21,987 1,893 11.6

Administrative Administrative staff 355 48 7.4 271 86 3.2 staff Executives 1,238 133 9.3 Executives 382 25 15.3 Professionals 14,377 937 15.3 Professionals 4,428 320 13.8 Technicians 16,815 1,142 14.7 Technicians 1,614 250 6.5 54,772 4,153 13.2 7,061 723 9.8

168 169 THE M1 PATH TO EXCELLENCE

The M1 operational excellence methodology, based on the Lean system, is already a part of the SQM organizational culture. Program penetration in 2019 surpassed 90%, moving the Company out of the implementation phase and into the maintenance phase during which the program will be deployed more directly in specific areas such as quality, production and costs. Moreover, the program will be reimplemented in 2020 as a pilot at our Nueva Victoria site in the Tarapacá Region in order to reinforce risk prevention.

M1 provides SQM with a tool to identify good practices and improvement opportunities, provide continuous training to its employees, reduce its operating costs, optimize processes and boost safety. Moreover, M1 addresses key principles such fair and connected leadership, listening and reaching agreements, treating people with dignity, explaining the purpose of each job and features an employee recognition program based on values that honor people and their work.

170 171 PERFORMANCE We acknowledge EVALUATION PROGRAM DISCLOSURE - 404 -3 our employees’

Every year our employees must Evaluations begin in the month achievements undergo performance evaluations of January for supervisors and as a path to consisting of a self-assessment executives, followed by general and a supervisor assessment, staff employee evaluations in professional coupled with feedback from both April. parties. growth that favors equal opportunity and encourages continuous 4,981 improvement. EMPLOYEES WERE EVALUATED IN 2019

DISCLOSURE - 404 -3

EMPLOYEES IN CHILE EVALUATED BY CATEGORY AND GENDER BY PERCENTAGE IN 2019

Individuals Performance Evaluations % Evaluated Evaluated

TOTAL EVALUATED 4,981 94%

Supervisors and Executives 1,641 89%

General 3,340 97%

MEN 4,221 95%

Supervisor, Men 1,198 91%

General, Men 3,023 97%

WOMEN 760 89%

Supervisor, Women 443 86%

General, Women 317 94% Workers at Coya Sur operations, Antofagasta Region.

172 173 CELEBRATING OUR EMPLOYEES’ ACHIEVEMENTS

Given how successful our “VIVO” component to acknowledge program has been, we continue teams of employees who had to use it to recognize our implemented improvements employees. “VIVO” entails using in their areas that warrant an on-line platform or an app to recognition, among other merits. recognize others at all levels, i.e., peer to peer, among supervisors, The pillars of the program are: people in other areas and in other People Development, Continuous locations, etc. Improvement, Common Goals and Efficient Processes. In 2019, the Company decided to include a team recognition

Recognition Individuals Men Women Program Recognized Recognized Recognized

Total Awards 13,855 11,828 2,027

Recognition for 103 91 12 Years of Service

Recognition for 92 84 8 Best Worker

13,855 RECOGNITIONS AWARDED TO EMPLOYEES IN 2019 IN DIFFERENT CATEGORIES

174 175 09

Safety, One of Our Values

176 177 SAFETY, ONE OF OUR VALUES DISCLOSURE 103-1/ 103-2/ 103-3 DISCLOSURE 403-1 (2018)

Caring for people’s safety is OPERATIONAL RISK THE PRINCIPLES OF OUR a priority commitment at the MANAGEMENT SYSTEM MANAGEMENT SYSTEM ARE: Company that motivates us daily SQM bases its work on an to strive for safe and accident-free • Leadership. Operational Risk Management operations, which is why safety is System (SISGRO) with a view • Behavior-based Prevention. one of the Company values. to facilitating and standardizing • Joint Committee on Hygie- company-wide prevention Caring for individual and group ne and Safety (JCHS). management and controlling safety is vitally important to SQM occupational risks and losses which is why we foster a culture • Accident Investigation Re- that could potentially occur at its of prevention and encourage porting. different operations. our workers to also adopt this • On-site Activities. approach at home. SISGRO is a mandatory • Compliance. application for all individuals working at the Company, whether • Contractor Oversight. at our production centers, sites or • Emergency Plans. projects. • Ongoing Training All activities carried out under • Order and Cleanliness. SISGRO are part of the Operational Excellence Program, called M1, • SISGRO Audits. through which the Company is able to standardize the suite of Lean system tools provided under M1 to risk management, thereby providing better outcomes.

Emergency Brigade training.

178 179 Coya Sur operations. Photo credit: Lino Rivas. SQM Photography Contest.

DISCLOSURE 403-2 (2018)

We manage our own Critical establish the necessary effective actually brought under control and safety management system. they believe may cause injury, Inventory by identifying hazards controls. Once implemented, we so that we can then develop the illness or disease are protected and evaluating risks related to conduct an evaluation of each necessary action plans to ensure Moreover, employees are able to under the provisions of Article the process carried out in the control that has been set up to an effective control. use Performance Dialogues to 184 bis of the Labor Code. different areas. By identifying address occupational health notify management of hazards or hazards and evaluating risks we and safety issues. The purpose We then confirm the processes dangerous situations. Employees are able to determine which is to determine to what extent to evaluate and continuously wishing to remove themselves items are critical in order to the issue being evaluated is improve the occupational health from workplace situations that

180 181 PROCESSES USED TO INVESTIGATE WORKPLACE INCIDENTS DISCLOSURE 403-2 (2018) The Company’s investigation It is mandatory for all SQM Since 2012, process is broken down into six personnel, contractors, suppliers, steps. Incident investigations visitors and all others to SQM has been a must begin as soon as possible immediately report to their direct member of the following the incident so that the supervisors, any incident that may team of investigators may make have affected them or that they Chilean Safety their observations at the time of are aware of, using the quickest Association (ACHS), the incident and be sure to collect channel available to them. It is the available evidence: also mandatory for personnel which provides to provide all the information medical attention 1. Immediate Actions required to investigate the event. in the event of 2. Gather Information and/or Research Data accidents and advises member 3. Organize Information and/ or Research Data Gathered companies working Mine maintenance workshop. Photo credit: Manuel Cavero. SQM Photography Contest. 4. Analyze Cause and Effect to ensure ongoing compliance with 5. Implement Control Solutions health and safety standards in our 6. Draft Report on Investigation and Findings organization.

182 183 DISCLOSURE 403-3 (2018)/ 403-6 (2018) In order to respect and ensure As part of our volunteer program Additionally, in 2019 SQM health and quality of life at As far as the Company is In order to safeguard our the confidentiality of patients’ and services aimed at promoting launched its “Vida más Sana” camps. Company-employee concerned, it has 13 Joint employees’ health, we have medical records, once care has better health, employees have (Healthier Living) program. This participation mechanisms Committees on Hygiene and healthcare clinics and first aid been provided, the physician/ access to the polyclinics located program consists of several include: Safety (JCHS) that represent stations available at our work sites. paramedic will verbally and at each work site and the María benefits such as making fresh SQM’s 5,048 employees (annual These are staffed by specialists, privately inform the patient of the Elena Hospital, as well as special fruit available to employees at • Union Leader and Company average). These committees are physicians and paramedics diagnosis and care indications. group health insurance plans with the offices daily free of charge; Safety Commission. governed by Supreme Decree They will also issue a “Care Cruz Blanca, Cruz del Norte and encouraging employees to take No. 54, which provides that all who are trained, qualified and • Joint Committees on Hygiene Certificate” stating the treatment Colmena, where they can access part in sports activities such companies, sites, branches or accredited to perform these and Safety. duties. provided and indications. At health insurance plans with as functional fitness classes agencies employing more than every appointment, patients are more benefits. The Company’s and cooking classes at SQM’s • Worker representation in ac- 25 individuals must set up Joint Workers on site have 24-hour informed of their rights under package of employees benefits Antofagasta offices; and a food cident inspections and inves- Committees on Hygiene and access to primary care centers. Law 20,584 governing patient also includes supplementary cart offering healthy items at the tigations. Safety composed of company and If necessary, employees are rights and responsibilities, health insurance and catastrophic same offices. The Company plans worker representatives. Decisions • Identification of situations in transferred to more sophisticated which emphasizes that medical medical insurance plans available on replicating these initiatives at adopted by the committee when violation of standards. medical centers in ambulances information must not be to all employees at low rates other operations in 2020. exercising its rights as provided kept on site at each operational disclosed to anyone other than that are based on the number of • Coordination with risk preven- under Law No.16,744, will be center. the individual receiving care. dependents of each employee. Moreover, all employees have tion departments at each site. binding for both the Company access to special SQM employee and its employees. discounts at gym franchises The Union Leaders and Company commissions are comprised located in different cities, We must point out that SQM of worker representatives and along with healthy and low-cal considers safety to be a right members of the Company’s menu options and salad bars at its workers are entitled to and management. They are company cafeterias. an obligation and duty that the responsible for verifying that Company must fulfill at all times. DISCLOSURE 403-4 (2018) workers have proper workplace Consequently, most of these safety standards in place to SQM, its employees and the agreements do not incorporate do their jobs and, also, that unions that represent them have safety issues as benefits. a shared concern for the safety food served on site meets high standards. of people and quality of life at SQM has implemented plans camp accommodation facilities. covering safety issues and Thanks to these commissions, In this spirit, they are willing to provides regular training sessions agreements have been reached reach agreements and make regarding safety. One hundred between management and improvements in this area. This percent of the Company’s workers that help our personnel has resulted in the creation of employees receive healthcare perform their jobs in a clean, safe committees and commissions benefits. to address risk prevention, and comfortable environment.

184 185 DISCLOSURE 403-5 (2018) years only, such as defensive DISCLOSURE 403-8 (2018) In addition, our Nueva Victoria driving, first aid or fire extinguisher site in the Tarapacá Region SQM provides its employees SQM has implemented an use, among others. At the end of may be audited under the training and education courses Occupational Health and Safety each course students are tested Responsible Care certification on a variety of different subject System as set forth in Chilean to check their understanding of system, which consists of a matters as well as specific training Supreme Decree 76, Title II the concepts taught. voluntary commitment by the courses that address occupational Occupational Health and Safety chemical industry to continuous hazards, hazardous activities or System, Article 7. improvement in the areas of situations. SQM gave 122 different training courses in 2019 on risk environment, health and safety. SQM’s 5,048 employees (annual prevention, corporate standards, Courses are given weekly during average) are part of this system legal certifications, technique and This audit extends to our 1,060 the workday. All new hires and and, as such, are governed by rescue skills. Nueva Victoria employees (annual contractors scheduled to work its rules and subject to audits, average), representing 21% of the at one of SQM’s production just like their workplaces. This Company’s entire workforce. sites must take the introductory Some of the courses regularly figure excludes employees of courses in addition to specific offered include: New Hireits subsidiary SQMC and foreign courses on the subject matter Orientation, Defensive Driving, employees. A total annual average of 1,237 related to the job they were hired Working at Heights, Blocking contractors work at our Nueva Energy Sources, Isolating, Victoria site and they too are to perform. Employees must Regarding contractors or Blocking and Testing Energy subject to audits. They make up retake the courses to refresh contractor companies covered Sources, Energy Blocking Module, 17.8% of all contractors working their knowledge, as necessary or by the Occupational Health and Tmert E.C. Protocol, Product at SQM (annual average). according to their annual planning Safety System and whose place of Safety Data Sheets, UV Radiation, and schedule of assessed danger employment is governed by this Critical Inventory, among others. of exposure. For example, certain system or subject to audits, 100% courses are valid for one or two of them (equal to 6,944 workers on average annually) are covered.

Land Surveyor Photo credit: Fernando Rosales. SQM Photography Contest.

186 187 DISCLOSURE 403-8 (2018) SURVEILLANCE GUIDES AND PROTOCOLS

Inspections were conducted in PREXOR; Manual Load Handling November and December 2019 Protocol, MMC; Musculoskeletal to verify compliance with the Disorders of Upper Limbs, TMERT Ministry of Health’s guidelines EESS; Occupational Exposure to and protocols. This was a joint Chronic Intermittent Hypobaria activity carried out with experts Caused by Elevation; Solar UV from ACHS. Radiation Occupational Exposure Prevention and Protection The following guidelines and Program and Psychosocial Risk programs were reviewed: Protocol. National Silicosis Eradication Plan, PLANESI; Occupational Noise Exposure Protocol,

RESULTS BY SITE, SURVEILLANCE GUIDES AND PROTOCOLS

Pedro de Salar de Guide/Protocol Tocopilla María Elena Nueva Victoria Valdivia Atacama

Silicosis N/A N/A 91% 73% 83%

Occupational noise 58% 59% 77% 51% 73% exposure

Manual load handling 10% 76% 69% 25% 56%

Musculoskeletal disorders of upper 60% 95% 100% 78% 77% limbs

Hypobaria N/A N/A N/A N/A N/A

UV 88% 82% 94% 68% 88%

Psychosocial 42% 73% 73% 56% 68%

NOTE: N/A Guide or protocol does not apply to this site.

Workers at Salar de Atacama operations, Antofagasta Region.

188 189 The Salar del Carmen and No occupational illnesses were The most common types of workplace accidents during the reporting period were: fractures, burns and Antofagasta sites will be inspected reported in 2019. contusions. during the second quarter 2020. Some of our safety performance DISCLOSURE 403-9 The Load Management Manual figures are listed below: INJURIES FROM WORKPLACE ACCIDENTS, NON-SQM EMPLOYEES ENGAGED IN WORK OR AT is ranked the lowest throughout WORKSITES CONTROLLED BY SQM the entire Company in terms of percentage of compliance, while Number of hours worked 11,235,443 noise is cited as an issue by all workplaces. Noise exposure is LTIFR: Lost time injury Type No. something that affects the largest frequency rate number of job posts, which are all Deaths from an injury occurring during a workplace 0 0 part of the medical surveillance accident program. Injuries from a workplace accident with major 0.35 4 consequences (not including death)

Recorded injuries from workplace accidents 0.80 9 DISCLOSURE 403-9 (2018)

INJURIES FROM WORKPLACE ACCIDENTS, SQM EMPLOYEES NOTE: Rate is calculated at 1,000,000MH and does not include SQMC employees or foreigners. Data have been collected at work site medical procedure rooms and verified by the administrative entity for its workplace accident and professional illness insurance. Number of hours worked 10,514,238 The most common types of In order to control these risks, workplace accidents during the Company has developed LTIFR: Lost time injury Type No. frequency rate the reporting period were: new standards with critical amputations, burns, contusions, controls and updated existing Fatalities resulting from an injury occurring during a 0 0 cuts. controls, combined with workplace accident improving Corporate Electrical Injuries from a workplace accident with major 0.29 3 consequences (not including death) The primary basic rules of Regulations and Electrical safety related to the workplace Licensing Procedures, training Recorded injuries from workplace accidents 1.62 17 accidents that occurred during on risk control tools (HCR and the period were: Working at ART) and standards, updating heights, energy blocking system, critical inventory and PTS and lifting operations and safety analyzing and disclosing accident 10,514,238 basics. information to business areas. NUMBER OF HOURS WORKED AT SQM We periodically and systematically review and update our corporate standards as a measure to prevent occupational hazards or control risks.

190 191 ACCIDENT TYPE AND RATE DISCLOSURE 403-10 (2018)

DISCLOSURE 403-9 OCCUPATIONAL ILLNESS AND DISEASES

Breakdown of number of cases of employees receiving medical care during the period: Total

Types of Visits/Cases Number of Visits/Cases SQM CONTRACTORS SQM + CONTRACTORS Occupation-related visits 150 medical visits for POE* Region LT NLT FATAL LITFR DLR LT NLT FATAL LITFR DLR LT NLT FATAL LITFR DLR

Antofagasta 12 37 0 1.66 143 4 42 0 0.44 9 16 79 0 0.98 68 Ordinary visits 1,419 medical visits for PCE**

Tarapacá 5 7 0 2.23 81 5 7 0 2.40 55 10 14 0 2.31 69 Cases reported as occupational illness 0

Metropolitan 0 1 0 0.00 0 0 0 0 0.00 0 0 1 0 0.00 0 951: Common cold

Overall total 17 45 0 1.62 115 9 49 0 0.80 18 26 94 0 1.20 65 109: Musculoskeletal disorders (no cases reported as occupational illnesses) NOTE: Days lost due to accidents in 2019 are being reviewed by the administrative entity (ACHS), so severity rates could be Main illnesses or diseases reported modified. 5: Dermatology cases Values in this table have been approximated to the nearest higher whole number. 0: Psychosocial

0: Noise-induced hearing loss • LT: Lost time accident

*POE Presumed to be an occupational event • NLT: No lost time accident **PCE Presumed to a common event • FATAL: Deaths from workplace accidents

• LTIFR: Lost time injury frequency rate DISCLOSURE 416-2 DLR Days lost rate due to accidents • TOTAL NUMBER OF INCIDENTS OF NON-COMPLIANCE WITH REGULATIONS OR HEALTH AND SAFETY CODES FOR PRODUCTS AND SERVICES. LOST TIME INJURY FREQUENCY RATE FOR SQM AND CONTRACTORS (LAST FOUR YEARS)

Total number of cases of non-compliance with voluntary regulations or codes concerning the health and 6 Year LTIFR 2.5 safety impacts of products and services during the reporting period 2.09 2019 1.20 2.0 Non-compliance with regulations that result in fines or penalties 5 2018 0.69 1.51 1.5 Non-compliance with regulations that result in warnings 1 2017 1.51 1.2 2016 2.09 1.0 Non-compliance with voluntary codes 0 0.69 NOTE: Days lost due to accidents in 2019 are being reviewed by the 0.5 administrative entity (ACHS), so severity rates could be modified. Verified 2019 LITFR includes SQM 0.0 employees and contractors 2016 2017 2018 2019

192 193 STRESSING SAFETY REINFORCING SAFE HABITS GUARANTEEING PROCESSES

We carried out a variety of Workers at our Nueva Victoria SQM employees participated in activities at our sites and in the site were trained and certified the “Process Safety Management community that were aimed at in the course on electrical risks Seminar” held by the FM Global promoting preventative action at delivered to refresh employees’ insurance company and organized our operations in 2019, such as: knowhow and reinforce safety by the Lithium-Potassium Risk habits and procedures regarding Management Area and Salar del NOISE MANAGEMENT heaps and ponds at the site. The Carmen’s Prevention Area. JCHS suggested this training as a The Company implemented an mitigation measure for this type The idea for this seminar came innovative solution to reduce of risk. Twenty-three workers about following several visits noise from the MOP H I plant from the area were certified. made by the insurance company grinding circuit. This solution to SQM sites to implement consists of flexible acoustic PREVENTING PSYCHOSOCIAL RISKS operational process safety barriers—very similar to covers management programs. The or curtains—with a high-density A new survey was conducted to purpose was to teach workers vinyl interior and polyester identify the occupational psycho- about change management, exterior that provide a high level social risks that production which is a management system Solar evaporation ponds. of insulation, UV resistance and Photo credit: Victor Rivas. SQM Photography Contest. personnel may be exposed to focused on reducing the tensile strength. These curtains at the Coya Sur and Pedro de probability of occurrences and considerably reduced the degree Valdivia sites. incidents involving processes of energy perceived by the FIRST AID WORKSHOP FOR At the workshop participants JCHS AT SQM SITES PARTICIPATED related to solvent extraction (SX) workers in that area. At the same COMMUNITITES received general information IN A CORESEMIN SEMINAR It is worth noting that the plants. time, SQM worked with ACHS Psycho-social Risk Surveillance about first aid, general care The Potassium-Lithium Risk guidelines, and tools and to develop various surveillance Protocol—a joint development Nearly 40 professionals from A total of 130 members from Management Area and the Salar equipment to quickly respond various SQM Joint Committees and protection procedures and by the Ministry of Health and the plants participated in two de Atacama JCHS were the to a heart attack. In addition to on Hygiene and Safety met with programs for their workers. ACHS—is aimed at encouraging days of discussions on subjects driving forces behind a “First Aid learning how to change bandages, Antofagasta Region contractors greater collaboration among pertaining to ten basic aspects Workshop” that was held at the in Calama to discuss and examine This innovation was in fact employees and supervisors at and why people go into shock and of the structure of the safety various matters related to the an improvement inspired by Toconao Educational Complex how to treat them, participants work, guaranteeing people are management system, ranging roles of the JCHS as well as safety, recommendations issued by in San Pedro de Atacama. also learned how to move injured respected and treated well; from analyzing and understanding risk prevention and occupational ACHS as part of its observations Forty-seven teachers, students individuals and properly use the fostering clarity and transparency risk, to the integrity of assets and health. of a considerably high decibel and parents took part in the AED for cardiopulmonary arrest within the organization; and investigating incidents. All of (dB) level in the area of workshop. The community also and resuscitation. facilitating a better work/ these matters have a high level implementation. received an Automated External life balance, among other of incidence on preventing and Defibrillator (AED) for use during purposes. reducing the number of events. cardiopulmonary emergencies.

194 195 The event was organized by purpose is to provide employees A PRO-SAFETY HARBOR the Antofagasta chapter of with the items they would need the Mine Safety Committee in the event of an accident or The Tocopilla JCHS organized (Comité Minero de Seguridad a medical emergency, and to a safety fair for employees and Minera de Antofagasta) to share ensure that there are trained contractors where they were good practices. SQM gave a employees on site who know presentation on the importance informed of the self-care, what to do immediately following of workplace safety and how preventive management and work is performed, the main an emergency since time is other initiatives and activities activities carried out currently, critical and may save lives. carried out during the first half of such as prevention campaigns, the year. monthly inspections and FIGHTING BREAST CANCER training conducted with nearby TOGETHER This activity was held in the communities. context of World Safety Day and The Salar de Atacama JCHS co- sought to drive cultural change An opportunity to share good organized a field operation with among workers so that safety practices, this 9th version of the the Arturo López Pérez Foundation event is proof of the leadership of becomes second nature. to give digital mammograms to the Joint Committees and their more than one hundred women contribution within organizations. In addition to this initiative, SQM belonging to the San Pedro de employees and contractors held Atacama community and the COYA JOINT COMMITTEE ON a series of peer-to-peer meetings female workforce at the site. HYGIENE AND SAFETY FULLY ON to highlight best practices, BOARD WITH SAFETY standardize criteria, come up with As part of this government- a common language for safety sponsored Breast Cancer Early Being prepared for any possible issues and honor workers who Detection Program, a mobile event is one of the driving are committed to safety at the clinic—fully-equipped with two principles of the JCHS at SQM’s port. digital mammogram machines Coya Sur site. Accordingly, the and digitization equipment and committee arranged for an staffed with a radiologist and emergency care cabinet to be specialist medical technologists— delivered to the site. It came set up shop in Toconao’s main stocked with a trauma board, square for nearly a week. immobilizers and an emergency kit containing dressings, emergency survival blankets, gauze, etc., to save workers’ lives in the event of an accident. The

Salar de Atacama Joint Committee on Safety and Health during training at Toconao Educational Complex, Antofagasta Region.

196 197 SQM JCHS MEETS WITH SPECIAL GUESTS

More than 30 people representing Nearly 40 advisors, members of a total of nine organizations met the SQM JCHS and contractors at the Nueva Victoria site during such as VMS, API, Viggo, Excon, the first meeting between the Eulen, Aramark and Yeyma SQM JCHS, contractors and participated in the “Salar de special guests such as Besalco, Atacama Meeting of the Joint Aramark, ECR, the Chilean Committee on Hygiene and Safety Association (ACHS) and Safety.” The purpose of this event BHP Cerro Colorado. The last was to share experiences and talk two have long-standing, sound about what each team is doing experience in safety recognized at their sites to boost accident by the industry. prevention and create safer workplaces for all workers. Members of the BHP Cerro Colorado JCHS gave a A variety of activities took place presentation on their experience during the meeting including in safety management, presentations on different emphasizing the psycho-social prevention-related issues, roles, aspect of workers, using the operational aspects and initiatives. causal tree analysis methodology to investigate incidents, the importance of immediate reportability and other topics related to peoples’ behavior.

198 199 10

Value Chain

200 201 VALUE CHAIN DISCLOSURE 102-9

At SQM contractor companies, All employees and contractors Contractor companies are also contractors and suppliers are must comply with the standards audited on matters such as health a key part of our ability to do we have established at SQM, and safety, basic sanitary and business. This workforce works particularly in the areas of safety, environmental conditions in the at our operations located in labor rights and ethical behavior. workplace, the health and safety the Tarapacá and Antofagasta management system, and the regions, Port of Tocopilla and our SQM periodically engages in existence and functioning of joint offices in Iquique, Antofagasta and oversight activities in order to committees and compliance with Santiago. On average in 2019 the measure the degree to which all labor laws. number of contractors working at contractors comply with labor SQM in 2019 was 6,944. and social security requirements.

Chemistry lab, Antofagasta.

202 203 VALUES SHARED WITH OUR EMPLOYEES

When contractors of any size health examinations, compliance We try to work with suppliers begin working at any SQM site, we with labor laws and employment that are located in or near the provide each of them a copy of contracts, personnel skills, communities and cities where we our Contractor and Subcontractor equipment certifications, among operate. We define a local supplier Regulations. These regulations others. as a company whose main offices inform them of the Company’s are located in the Tarapacá or standards, including obligations Suppliers are evaluated in Antofagasta regions, close to our and responsibilities regarding different ways, for example, operations in order to drive and safeguarding the health and procurement engineers visiting strengthen companies located in lives of all workers. In addition, their facilities to observe aspects each region. SQM organized several training such as trash separation, noise sessions focused specifically on pollution, industrial waste, water safety matters for contractors as consumption, and issuing their part of its efforts to contribute suggestions based on their to risk prevention and align observations. workers with our Sustainable Development Policy and other We also have a Procurement standards. Procedure designed to regulate and standardize this process SQM’s purchasing strategy takes by defining an effective safety and labor regulation methodology for managing and elements into account for controlling purchased products. its procurement processes. This process includes making Essential requirements include: a purchase request, selecting membership in a safety from possible supply sources, association (mutual in Spanish), analyzing alternatives, placing an SQM ORGANIZED SEVERAL accident rate certificates,order, generating and monitoring TRAINING SESSIONS authorization to subcontract, purchase orders and paying FOCUSED SPECIFICALLY suppliers. ON SAFETY MATTERS FOR CONTRACTORS AS PART OF ITS EFFORTS TO CONTRIBUTE TO RISK PREVENTION AND ALIGN WORKERS WITH OUR SUSTAINABLE DEVELOPMENT POLICY AND OTHER STANDARDS.

204 205 DISCLOSURE 102 -9/204-1 DISTRIBUTION OF SUPPLIERS BY REGION, TYPE OF SUPPLIER AND PURCHASES IN US$

SUPPLIERS BY TYPE, REGION AND PURCHASES IN US$ DISCLOSURE 102-9

ThUS$ 3,155

Supply Chain Services Supplies Total

Number of Number of Number of Number of Región Value in US$ Value in US$ Value in US$ Value in US$ Suppliers Suppliers Suppliers Suppliers ThUS$ 84,664 Tarapacá and 8 Antofagasta 159 63,815,172 162 92,304,410 1 1,058,665 322 157,178,247 regions 122 ThUS$ 231,969 162 Other regions 1,258 113,072,239 281 123,964,446 10 118,896,917 1549 355,933,602 160 ThUS$ 92,304 Foreign 121 84,636,403 8 3,155,000 1 27,820 130 87,819,223 281 Total 1,538 261,523,814 451 219,423,856 12 119,983,402 2,001 600,931,072 ThUS$ 64,874 1,268

DISTRIBUTION OF SUPPLIERS BY REGION AND PURCHASES IN US$

ThUS$ 123,964 Other regions Foreign ThUS$ 355,934 130 ThUS$ 87,819 1,549 322 Foreign (Purchases) Tarapacá and Antofagasta (Services) Tarapacá and Antofagasta (Purchases)

Tarapacá and Antofagasta Other Regions (Services) ThUS$ 157,178 Other Regions (Purchases) Foreign (Services)

Tarapacá and Antofagasta Other regions Foreign

206 207 SQM CONSOLIDATES ACTIVE 2019 CIMIT PARTICIPATION IN EXPONOR In addition, SQM was present at More than 20 thousand people the third version of the Tarapacá visited SQM’s stand at the 2019 International Mining Conference Exponor Fair held in the city of (CIMIT), along with the 1,500 Antofagasta. SQM representatives individuals who visited the two-day took part in 61 business meetings conference organized to provide and technical talks during this the mining sector an opportunity to event. In addition to purchasing network and discuss mining issues. and procurement meetings, The B2B of the Pacific was also SQM representatives met with organized as a side event to CIMIT nearly 100 suppliers interested in where we were actively involved, working with the Company. alongside other Chilean, Peruvian, Argentinean and Mexican companies As in previous years, a group that were able to meet at more of 33 suppliers associated with than 800 meetings with suppliers. the mining industry—mostly Also, we announced employment international—visited our Salar opportunities at the Miming Job Fair de Atacama operations to learn held at the same time. In 2019, we backed several initiatives about our facilities and lithium aimed at supporting innovation and production chain. Moreover, we participated in an entrepreneurship, including, but exhibition on “Business Opportunities not limited to, Puerto Cowork in Additionally, SQM’s stand offered and Challenges in Mining”, presented Tocopilla, the Scrap Challenge, a a series of activities including live by one of our executives, and we joint effort with Hub de Tarapacá in exhibits on hydroponic crops were also invited to join a discussion Iquique, and reconstruction of the treated with SQM products; an on “Dispelling myths about entering Feria Redonda market in María Elena, electric vehicle charging station the field of mining from a gender all of which drive local businesses with live demonstrations of the perspective,” organized by the and production activities in towns advantages of electromobility; Ministry of Women and Gender near our operations. plus, a field trip for 300 children Equity. from Antofagasta, Toconao, Tocopilla and María Elena who took part in 13 robotics workshops held by Vilti Semann, one of the event’s most visited stands.

208 209 11

Committed to the Environment

210 211 COMMITTED TO THE ENVIRONMENT

We develop our operations while being conscientious of the environmental impacts they may generate.

DISCLOSURE 103-1/ 103-2/ 103-3 the possible impacts of our variables into our operations At SQM we carry out our production processes on the early on, beginning in the design operations conscientiously, in environment and neighboring stage. This helps us to implement harmony with the environment communities. control and mitigation measures and in compliance with and avoid contamination by environmental legislation in We conduct our activities in properly managing waste and effect. It is essential that we work accordance with our Sustainable emissions. to ensure that natural resources Development Policy in order to and production inputs are used minimize environmental impact sustainably and to minimize and incorporate environmental San Pedro de Atacama. Photo credit: Cristián Donoso. SQM Photography Contest.

212 213 San Pedro de Atacama operations. Photo credit: Rodrigo Arriagada. SQM Photography Contest.

DISCLOSURE 103-1/ 103-2/ 103-3 The experience has provided us December 2019, we have In accordance with our Sustainable Our operations are located with a solid knowledge base of environmental authorization for in desert areas with scarce the ecosystems surrounding our a total of 62 projects (16 by SQM Development Policy, SQM continuously biodiversity. However, there are operations, which has enabled us Nitratos S.A, 12 by SQM Industrial reviews and outlines new challenges some areas near our operations to draft and implement effective S.A, 14 by SQM S.A and 20 by SQM with significant ecologicalprevention, mitigation and Salar S.A.). Of these 62 projects, 62 that allow it to further advance its value. In these areas we have monitoring plans. 11 were approved with an ENVIRONMENTAL AUTHORIZATIONS IN 2019 performance in all areas. implemented ongoing protection, Environmental Impact Study (EIA) monitoring and control plans to Each of our projects is submitted and 51 with an Environmental help protect the environment. to the Environmental Impact Impact Statement (DIA). Assessment System. As of

214 215 DISCLOSURE 103-1/ 103-2/ 103-3

All SQM production facilities WE PERIODICALLY CARRY have closure plans that have OUT: been approved by the respective authorities. These plans are based • Yearly internal environmen- on criteria and measures that tal audits at all production meet current regulations. facilities.

In 2019, authorities conducted • Independent environmental inspections at our operations audits for the operations at in Nueva Victoria, Salar de Salar de Atacama and Sa- Atacama, Salar del Carmen, lar del Carmen, and hydro- Coya Sur, Pedro de Valdivia, geological audits related to María Elena and Tocopilla. the extraction of industrial The inspections involved the water for our operations in following agencies: The Regional Nueva Victoria. Health Agency (Seremi de Salud), • Environmental monitoring the Superintendency of the and early warning plans at Environment (SMA), the National the Salar de Atacama and Geological and Mining Service Nueva Victoria operations. (SERNAGEOMIN) and the General Water Bureau (DGA).

DISCLOSURE 307-1

As of the publication of this report, SQM has not received any significant fines and/or penalties for violations of environmental laws or regulations.

216 217 DISCLOSURE 304-2 /103-1/ 103-2/ 103-3 SPECIES WITH CONSERVATION SITES CLOSE TO THE NUEVA STATUS VICTORIA OPERATIONS IN THE DISCLOSURE 304 -4 TARAPACÁ REGION

5 Our Nueva Victoria site is located in the district of Pozo Almonte in the Tarapacá Region, and is subject to a very extensive environmental monitoring plan given its proximity to the Tamarugal National Reserve, Bellavista sector, Pintados sector and Salar de Llamara. Pampa del Tamarugal Aquifer 4 PINTADOS SECTOR Huara • 20 hydro-geological monitoring points Tarapacá Region Iquique Pozo BELLAVISTA SECTOR Alto Almonte Hospicio • 30 hydro-geological monitoring points La Tirana • 20 tamarugo monitoring points Bolivia • 4 fauna monitoring stations Pica • 8 vegetation monitoring transects • 10 water extraction wells Colonia Pintados 3 Victoria Oﬃce 2 SUR VIEJO: • 9 water extraction wells Iris Plant Huatacondo 16 hydro-geological monitoring wells • Nueva Tamentica Victoria Plant Salar del Sur Viejo Aquifer SALAR DE LLAMARA

Water extraction wells, pipelines Salar de Llamara injection wells and power lines Aquifer • 63 hydro-geological monitoring points LEAST CONCERN • 1 aquatic biota monitoring point Antofagasta 1) Gecko (Phyllodactylus gerrhopygus) • 7 fauna monitoring points Region 2) Culpeo fox (Pseudalopex culpaeus) • 9 vegetation monitoring transects • 16 retama monitoring points • 24 tamarugo monitoring points RARE • 7 water extraction wells in use; environmental monitoring 3) Lava lizard performed. (Microlophus theresioides)

1 Pumping wells Monitoring points for Pampa Pampa del Tamarugal National DATA DEFICIENT Observation wells Hermosa Biotic Environmental Reserve 4) Tamarugo conebill Monitoring Plan Bellavista tamarugo vitality study Salt flat area (Conirostrum tamarugense) Llamara tamarugo vitality study area

ENDANGERED 5) Tamarugo tree (Prosopis tamarugo)

218 219 ENVIRONMENTAL FEATURES OF SQM has patented in Chile and solutions are discharged). The PRODUCTION PROCESSES IN the United States. system consists of floating a large NUEVA VICTORIA quantity of balls on the surface Nitrates are processed in solar of the ponds. The expectation is We produce iodine and evaporation ponds that are that the floating balls will reduce derivatives, and nitrate-rich salts assembled in sequence allowing the evaporation rate by 80% once from the caliche ore mined at nitrates to flow from pond to operating. our Nueva Victoria site, located in pond. Nitrate concentrations the Tarapacá Region. One of the and chemical balances are A penalty process was features of this site’s production measured in each pond, which initiated at our Nueva Victoria system is its leaching operations. are permanently monitored by operations in 2019. In February These are different from other SQM operators until reaching the Superintendent of the types of mining in that water is the right concentration at which Environment approved the used as the leachate, as well as the nitrates will precipitate in the Compliance Program submitted solutions recirculated from the ponds and be ready for harvest. by SQM. It is currently operational leaching process. All solutions We take advantage of the high for a duration of 36 months and draining out of the well-lined solar radiation rates and natural includes 30 scheduled actions. heap leaching operations are features of the Atacama Desert in The Company is currently channeled by gravity through this process where 96.2% of the preparing an Environmental an open conveyance network energy required comes from the Impact Study whose date of that was carefully planned and sun. approval will determine the built in advance, and discharged duration of the Compliance Heap leaching, Nueva Victoria operations, Tarapacá Region. into collection ponds. All runoff Zero waste is generated during Program (36 months) and this from irrigation and draining is the Nueva Victoria production could take longer as a result of the measured in real time. process because of how it indigenous consultation process. is designed. The iodine and The solution obtained from the NUEVA VICTORIA PRODUCTION PROCESS derivatives and nitrate production Likewise, the Universidad Católica caliche ore leaching operations process does not yield any del Norte is undertaking the containing iodine in the form of industrial waste. microbiological studies required iodate is sent to the iodide plant. under the Plan as well as some Part of the iodate in the solution Additionally, water used for Iodide/Iodine – Iris Iodine/Iodide complementary studies for which Water is reduced to iodide using sulfur domestic consumption at camp two field campaigns have already dioxide, which is produced by facilities is recirculated into the been carried out. burning sulfur. The resulting production process. iodide is combined with the rest The Quillagua and Huatacondo Nueva Victoria Heap leaching - of the original iodate solution to We are currently working on a communities have submitted Mine Nueva Victoria release elemental iodine. pilot project to decrease the water an appeal to the Antofagasta Nitrates evaporation rate at our processing Environmental Court in regard Iodide/Iodine- Ponds - Sur Viejo The solid iodine is then refined in Nueva Victoria centers (where the leached to the Compliance Program a melting and prilling process that approval.

220 221 ENVIRONMENTAL MONITORING PLAN IN THE SALAR DE LLAMARA DISCLOSURE 304-2

Salar de Llamara was incorporated A series of physiological MONITORING AQUATIC BIOTA into the Pampa del Tamarugal measurements of tamarugo trees AND SURFACE WATER IN National Reserve in 2013, for are also taken periodically. LLAMARA being classified as a priority site We also conduct semi-annual under the regional biodiversity The main variables measured monitoring of aquatic biota strategy, because of the native include and surface water in Puquios tamarugo forest and “puquios” de Llamara in order to verify with bacterial formations • Foliar hydric potential of bran- that there are no unforeseen located there. SQM executes ches. effects. The variables controlled the following activities within its • Stomatal resistance. by monitoring of aquatic biota environmental monitoring plan to include: ensure that the Pampa Hermosa • Isotopic discrimination of car- project adheres to the provisions bon 13. • Composition of phytoplank- of the environmental assessment: • Enrichment with oxygen 18. ton and phytobentos.

MONITORING TAMARUGO These measurements are • Diversity of zooplankton and TREES AND VEGETATION IN determining factors in analyzing bentos. LLAMARA the hydric status of tamarugos. • Development and status of Experts also monitor retama The Company monitors macrophytes. thickets and hydromorphic tamarugo tree vitality each year meadows in the area around MITIGATION MEASURES FOR in November, when vegetation is the lagoons known as Puquios HYDRIC SYSTEM IN PUQUIOS most abundant. This monitoring is de Llamara in order to evaluate DE LLAMARA conducted using high-resolution the status of these plants. satellite images (Quickbird, A mitigation measure has been Measurements include the WorldView 2, WorldView 3 or implemented to reduce the percentage of green growth, Geoeye). effects of the decline in the water vigor and phenology. table on the Llamara aquifer as a result of pumping taking place approximately 8 km north of this site. By returning water to the

Salar de Llamara Environmental Monitoring Plan, Tarapacá Region.

222 223 DISCLOSURE 304-3 ground, water levels and chemical TAMARUGO ENVIRONMENTAL quality are maintained within MANAGEMENT PLAN normal ranges for adequate In 2019 we continued activities development of biotic systems. as part of the Tamarugo Environmental Management Plan In addition, in 2019 SQM that was launched four years ago commissioned an important with the tamarugo tree planting number of studies on the program in the district of Pozo “puquios” and their biotic Almonte, in the Tarapacá Region. systems, which were conducted This program involved planting by teams of professionals from 5,522 tamarugos in the Bellavista leading Chilean and international area and 247 in the Llamara area organizations and institutions. for a total of 5,769 trees of this

HYDROGEOLOGICAL endemic species. Throughout ENVIRONMENTAL the reporting period, these trees MONITORING PLAN continued to be monitored, supervised and watered, which This monitoring involves monthly has yielded a good level of vitality measurements of aquifer levels, despite the difficulties faced by chemical quality, water volumes this species in its early stages of and flows extracted from wells, development. which enables the Company to verify predicted impacts The Company is studying during project operation and, the possibility of planting an if necessary, activate its Early additional 1,000 tamarugo trees Warning Plan. in 2020 as part of this program.

All data and knowledge generated through these activities and WE CONTINUED ACTIVITIES complementary studies are AS PART OF THE TAMARUGO used in the environmental ENVIRONMENTAL education program carried out MANAGEMENT PLAN THAT in conjunction with the National WAS LAUNCHED FOUR YEARS AGO WITH THE Forestry Corporation (CONAF for TAMARUGO TREE PLANTING Spanish acronym) in the Pampa PROGRAM IN THE TARAPACÁ del Tamarugal National Reserve. REGION.

224 225 DISCLOSURE 304-2 /103-1/ 103-2/ 103-3 SPECIES WITH CONSERVATION NEAR THREATENED SITES CLOSE TO THE SALAR DE STATUS 1) Puna lizard (Liolaemus puna) ATACAMA OPERATIONS IN THE DISCLOSURE 304 -4 2) Gray bat or Atacama bat ANTOFAGASTA REGION (Myotis atacamensis) Our Salar de Atacama site is located in the district of LEAST CONCERN

San Pedro de Atacama, Antofagasta Region, close 1 2 3) Constanza lizard to protected areas such as the National Flamingo (Liolaemus constanzae) Reserve, Soncor Sector and Agua de Quelana 4) Mouse-tailed bat Sector. (Tadarida brasiliensis) 5) Small big-eared brown bat 3 4 5 (Histiotus montanus) ENVIRONMENTAL MONITORING PLAN 6) Culpeo fox Road network (Pseudalopex culpaeus) Soncor RAMSAR Site 7) Grey fox National Flamingo Reserve (Pseudalopex griseus) Lagoons 6 7 8 8) Warty toad FLORA AND VEGETATION (Rhinella spinulosa) Flora monitoring plots 9) Andean gerbil mouse New vegetation monitoring plots (Eligmodontia puerulus) Vegetation monitoring plots 10) Peregrine falcon Vegetation monitoring plots in vegetation-aquifer connection zone 9 10 (Falco peregrinus) Bioindicator plots VULNERABLE 11) Paulina lizard FAUNA (Liolaemus paulinae) Census points 12) Andean seagull (Larus serranus) Transects 11 12 13 Aquatic biota monitoring 13) Andean flamingo (Phoenicoparrus andinus) PSAH VARIABLES 14) Parina Chica Quality (Phoenicoparrus jamesi) Flow 15)Chilean flamingo Level 14 15 16 (Phoenicopterus chilensis) Lake surface Volume 16) Darwin’s rhea (Rhea pennata tarapacensis) 17)Chululo (Ctenomys fulvus)

Bolivia ENDANGERED

17 18 19 18) Fabiani lizard (Liolaemus fabiani)

Argentina DATA DEFICIENT 19)Andean lizard (Large Dragon) (Liolaemus erraneus)

226 227 ENVIRONMENTAL FEATURES OF Salar de Atacama operations, Antofagasta Region. PRODUCTION PROCESSES IN THE SALAR DE ATACAMA

Our Salar de Atacama site operates Our environmental permit sustainably, continuously authorizes us to extract up to developing new technology to 1,500 l/s of brine from the Salar With a view to making expand our knowledge of the during this period. The TDS environmental information deposit and improve our lithium concentration in the brine is concerning our operations and potassium production approximately 7-8 times greater more open to the community processes so that we always than seawater and it is not and authorities, we developed obtain a sustainable product with suitable for human consumption an online monitoring system a low carbon and water footprint. or agriculture, based on Chilean to report water and brine regulations. extraction data and other The entire process undertaken background information in the Salar de Atacama basin is The brine and water are regarding environmental issues chemical- and solvent-free and physically separated because related to our activities in the based on maintaining correct they have different densities area that may be of public nitrate concentrations and and, as a result, it is not possible interest. You can access this chemical balances in the ponds, to confirm a direct impact on system via this link https:// which are constantly monitored the lakes from extracting water, www.sqmsenlinea.com/ by SQM operators. A total of although a significant imbalance 97.4% of the energy used at the in the mixture zone could Salar de Atacama site is solar potentially cause alterations. energy, which is responsible The environmental impact study for concentrating minerals by requires SQM to adopt a 225-point evaporating the ponds. These monitoring plan to ensure that SALAR DE ATACAMA PRODUCTION PROCESS processes naturally return the water extraction does not trigger water back into the ecosystem. any changes in the mixture zone.

Concentrated lithium There is also an early warning Extraction of solution high in boron Puriﬁcation Carbonation Boron In 2018 and 2019 the real plan in place that regulates water Lithium System [Li]-5.0 to 6.0% Brine Extraction amount of water we used in our extraction in order to prevent any Area production processes amounted impact from occurring. Lithium Potassium Salts Carbonate Potassium System to approximately ~168 l/s, to Plant Li2Co3 Lithium which is less than 4.18% of the Hydroxide Plant underground water rights and Lithium Hydroxide less than 2.5% of the total water Potassium Salts LiOH to Plant Potassium rights granted for the basin. products Potassium Chloride and Potassium Sulfate Plants

228 229 In 2019 the Superintendency In May, the Environmental Court In 1995 SQM of the Environment (SMA for its conducted an inspection of Salar spanish acronym) approved the de Atacama and all the parties obtained the first Compliance Program submitted involved participated. They are environmental by SQM, owner of the “SQM Salar awaiting a ruling. Atacama” project and involved in permit to begin On December 26th, the sanction proceedings raised by operating in the the SMA in November 2016 in Environmental Court issued a Exempt Ruling No. 1/F-041-2016. ruling rendering null and void Salar de Atacama. Exempt Ruling No. 24/Rol At the same time in January, the F-041-2016, which approved Peine and Camar Communities the compliance program and and the Atacameño People’s suspends the administrative Council submitted three penalty proceedings. complaints to the Environmental Court against the SMA for having approved the Compliance Program submitted by SQM.

The Environmental Court held a hearing in April to hear final arguments and SQM joined as an independent third party in addition to the SMA.

230 231 Environmental Monitoring Plan, Salar de Atacama, Antofagasta Region.

DISCLOSURE 304-3 evaluate the status of the systems tions known as “Chaxa” and This monitoring controls a set • 75 plots recording flora, distri- • Flamingo Census with CONAF ENVIRONMENTAL in the Salar de Atacama over time. “KCl.” of variables using direct, on- buted in 7 transects along the • Monitoring of flamingo bree- MONITORING PLAN IN THE The monitoring plan entails: site measurements and high- eastern edge of the Salar de Our operations are located ding cycle SALAR DE ATACAMA resolution satellite images Atacama near ecosystems that are highly • Measuring the levels and phy- (QuickBird or WorldView 2). valuable in certain sectors. 18 fauna monitoring stations In the Environmental Impact sical and chemical qualities of • We have implemented an (birds, mammals, reptiles) Study for the project “Changes water distributed among sha- The variables observed as part of and Improvements to Mining Environmental Biotic Monitoring llow and deep wells, metric this biotic monitoring in the Salar • 18 soil moisture and characte- Operations at Salar de Atacama”), Plan to closely monitor key rods at lagoon level and gau- de Atacama include: rization sampling points variables for determining the one of the commitments made in ging stations. the Environmental Qualification status of the vegetation, flora, • Vegetation with 99 monitoring • 25 aquatic life sampling sta- Measuring meteorological va- Resolution was to implement an • fauna and aquatic life in the points along the eastern edge tions (Soncor, Aguas de Que- riables at meteorological sta- Environmental Monitoring Plan to ecosystems under protection. of the Salar de Atacama. lana and Peine lake systems)

232 233 DISCLOSURE 304-3 ONGOING HYDROGEOLOGICAL ONLINE MONITORING SYSTEM We carry out MONITORING PLAN WITH 225 At our Salar de Atacama MONITORING POINTS IN THE environmental operations we have taken SALAR DE ATACAMA AQUIFER on the challenge of making monitoring plans to We have a Hydrogeological environmental information track ecosystems in Environmental Monitoring Plan regarding our operations (PSAH) in place to control the transparent, as a commitment to order to guarantee hydrogeological variables that are sustainability. We therefore make their proper important to environmentally- available to the community and sensitive areas. The plan includes authorities online information on conservation a wide monitoring network made water and brine extraction and status. up of: other background information regarding environmental issues • 225 monitoring points related to our activities in the area that may be of public interest. • 112 shallow wells

• 84 deep wells We have designed and implemented a monitoring 5 fresh water extraction wells • system that provides us with • 18 metric rods (surface water) average daily flow rate data for both extracted water and net • 4 surface water gauges extracted brine. It also serves as a • 2 meteorological stations verification system for authorities and stakeholders wishing to verify • 48 continuous-measuring our compliance with extraction points limits, in keeping with current operating regulations. The results of this report are public and can be reviewed on SQM’s website.

San Pedro de Atacama Lagoon, Antofagasta Region.

234 235 WATER DISCLOSURE 306-1

Salar de Atacama operations. Photo credit: Sebastián Glasinovic. SQM Photography Contest.

DISCLOSURE 103-1/ 103-2/ 103-3 management indicators on a fresh water. Since SQM’s operations are yearly basis. • Using suppliers that offer in- located in areas with scarce water dustrial water from treated resources, the use of this resource We take measures to ensure domestic waste water. The is very important to our Company efficient water use such as: industrial water used at the and it must be well managed • Reincorporating all water trea- Salar del Carmen facilities co- in our production processes. ted in SQM sewage treatment mes from waste water trea- We have water rights that have plants into its production pro- ted by the city of Antofagasta. been duly authorized for our cesses. This water is reutili- The Company has used the- operations. The water extracted zed in our processes in María se sources to supply almost is salt, underground and surface Elena, Pedro de Valdivia, Coya 84.6% of the industrial water water. Sur, Nueva Victoria and Salar needed to produce lithium hydroxide and lithium carbo- SQM periodically informs de Atacama. The Company’s nate at the Salar de Carmen authorities of water consumption sewage treatment plants are facilities. The rest of the con- for its production processes and maintained and monitored by sumption requirements are works constantly to identify ways specialized service providers. Evaporation ponds, Salar de Atacama operations. met with purchased, desalina- to use water efficiently. It also Photo credit: Claudio Sánchez. SQM Photography Contest. • Reutilizing process solutions ted seawater. evaluates each facility’s water to reduce the consumption of

236 237 We recirculate into production processes all waste water and Extraction of fresh water for reinjected as part of the mitigation DISCLOSURE 306-1/ 306-3/ 306-5 water treated at SQM sewage production purposes is strictly measures for the Pampa Hermosa In the year 2019, no significant controlled by environmental project in Salar de Llamara. spills contaminating the soil or treatment plants. assessments. This helps water (surface or groundwater) DISCLOSURE 303-2 (2018)/ 303 -4 (2018)/ 306-1 prevent damage to important were reported at the Company’s environmental elements In order to optimize consumption, operating facilities and production (vegetation, flora and fauna) we recirculate all waste water sites. in aquifers and surface water and water treated at SQM sources where the Company has sewage treatment plants into 3 water extraction rights. our production processes, thus 1,343,699 m reutilizing all water. In 2019 we OF SEWAGE WERE REUTILIZED IN 2019 In conjunction with these studies, reused approximately 548,550 m3 extensive hydrogeological based on operational estimates. modeling is designed and validated under the supervision of Domestic liquid waste from our national and international experts, offices in Antofagasta and at the based on which the Company Port of Tocopilla is disposed of conducts ongoing monitoring of in the public sewer system and, expected behavior. therefore, no dumping occurs that could affect biodiversity Of the total underground and protected. No effluent is resources extracted for Nueva discharged. Victoria in 2019, 802,625 m3 were

DISCLOSURE 303-5/ 303-3

WATER CONSUMPTION 2019

Surface Water Third-Party Supply Groundwater (m3) (m3) (m3) Facility Fresh Water Other Water (TSD >1000mg/l) (TSD≤1000mg/l)

Zones subject to water stress

Salar de Atacama 5,286,219 - -

Salar del Carmen - - 939,586

Nueva Victoria 19,896,165 - -

María Elena, Coya Sur, Pedro de Valdivia - 6,227,886 426,472

Tocopilla-Antofagasta - - 39,790

All zones

Other Offices - - 12,924

Total per category (m3) 25,182,384 6,227,886 1,418,772

238 239 WASTE DISCLOSURE 103-1/ 103-2/ 103-3/ 306-2/ 306-4

Given the importance of waste In 2019, 82% of the hazardous The Company prioritizes management to SQM’s operations, industrial waste generated in recycling or reusing inputs, it works hard to ensure waste is our production facilities was opting to eliminate waste only safely handled. which includes sent off-site for final disposal as a last resort, and when we do, obtaining necessary authorization using authorized transport, while we work with authorized waste for transport companies and final the remainder was recycled management companies. disposal sites. or used to generate energy. Hazardous waste is transported Most of our products are sold in SQM has developed plans and in accordance with regulations in bulk, which significantly reduces procedures to manage both effect in Chile. packaging and minimizes future hazardous and non-hazardous waste. waste. We have eight temporary SQM manages solid domestic storage sites for hazardous waste at all facilities and camp waste authorized by the Regional accommodations or disposes of Health Agency (Seremi de Salud), this waste in authorized landfills. six authorized temporary storage sites for non-hazardous industrial In 2019 it did not generate waste and an area for disposing any hazardous waste that of domestic waste generated at was disposed of or treated its operations. internationally. Nineteen percent (18%) of the hazardous waste generated by its operations was recycled by external companies as alternative fuel.

TOTAL WASTE SENT FOR FINAL DISPOSAL AND/OR TREATMENT

DISCLOSURE 306-2 82% OF THE HAZARDOUS INDUSTRIAL WASTE Type of Waste 2019 GENERATED AT OUR Hazardous industrial waste (ton) 2,791

OPERATIONS IN 2019 WAS Non-hazardous industrial waste (ton) 1,898 SENT OFF-SITE FOR FINAL DISPOSAL Domestic waste and other (ton)* 4,688 Total 9,377

*Includes 2,170 tons from town of María Elena.

240 241 EMISSIONS DISCLOSURE 103-1/ 103-2 /103-3

We continuously monitor air • PM10 emissions in María Ele- emissions at all facilities using na have decreased 97.8% from detailed projections of expected 2007 to date. This reduction environmental effects, emissions can be attributed to operatio- abatement equipment and proper nal changes implemented by monitoring of emissions. SQM and has resulted in significantly improved local air We also maintain meteorological quality and meeting of daily stations that are key in monitoring and annual PM10 standards. solar evaporation processes at • In the case of Tocopilla, PM10 facilities. In addition to these emissions generated by SQM’s measures, as part of its existing port operations are minor as environmental monitoring plans, compared to other sources the Company conducts isokinetic Salar de Atacama operations. in the city. As part of the To- measurements on smokestacks Photo credit: Javier González. SQM Photography Contest. copilla Decontamination Plan, (on dryers and boilers). commitments have been ful- filled and all measures ne- DISCLOSURE 305-7 SQM has worked hard to manage cessary to mitigate emissions In 2019, SQM’s port operations and monitor emissions of have been taken. reported PM10 emissions of 4.56 particulate matter (PM10). For tons, marking a reduction of 37% this, we have a vast air quality from its 2007 levels. In comparison monitoring network in the town to 2019 levels, this reduction is of María Elena and participate in 24% below commitments made the air quality monitoring efforts in the decontamination plan. in Tocopilla.

The Company has implemented a wide range of measures to fulfill commitments to control and reduce its PM10 atmospheric emissions in these towns as part of their decontamination plans.

Port of Tocopilla. Photo credit: Fernando Quiroz. SQM Photography Contest.

242 243 Nueva Victoria operations, Tarapacá Region.

GREENHOUSE GASES (GHG) DISCLOSURE 305-4 emissions are estimated using DISCLOSURE 305-1 GHG INTENSITY the IPCC Guidelines for National SCOPE 1: DIRECT EMISSIONS FROM FUEL CONSUMPTION: SQM estimates the total carbon Greenhouse Gas Inventories and footprint in aggregate for its entire Energy Intensity (Excluding CO2 emissions CH4 emissions N2O emissions 2019 2018 2017 2016 electric power is calculated using Year production chain and separately Solar Power) (tons) (tons) (tons) the factors posted on the National for several products. Tons CO2 eq/MUS$ 339 248 285 329 2019 240,958.3 6.7 1.1 Energy Commission’s website. 2018 160,313.6 5.6 1.1 The factors correspond to the These estimates consider all Based on these calculations, we have estimated our GHG emissions for 2017 212,947.0 7.6 1.5 Great North Interconnected stages from the mineral extraction 2017, 2018 and 2019 to be less than one million tons of CO2 equivalent System (SING) and the Central 2016 219,801.1 8.0 1.5 processes to the finished product. (CO2 eq) each year. Interconnected System (SIC) and

For 2019, GHG emissions totaled 647,209 tons of CO2 eq, which can be are calculated as follows: broken down into 241,443 tons of CO2 eq (Scope 1) and 405,766 tons of CO2 eq (Scope 2), and includes CO2, CH4 and N2O emissions. GHG

244 245 DISCLOSURE 305-2

SCOPE 2: INDIRECT EMISSIONS FROM ELECTRICITY CONSUMPTION:

Year CO2 eq emissions (tons) 2019 405,766.3

2018 388,190.2

2017 385,021.4

2016 385,508.8

THE RESULTS OF THIS CALCULATION WERE:

Year CO2 eq emissions (tons) 2019 647,209

2018 548,960

2017 600,898

2016 618,341

The panels produce 68 kwh/day, DISCLOSURE 305-5 for an annual production of 19 FIRST SELF-SUSTAINABLE MAINTENANCE WORKSHOP megawatts that are generated Northern Chile is known for its high solar radiation and low precipitation from 7:00 a.m.to 7:00 p.m. (the rates. That is what urged the Salar de Atacama’s Superintendency of period of greatest solar radiation). Mine Maintenance to develop an unprecedented project to use solar After that time, the shop begins energy to power the Maintenance Shop in a way that is eco-friendlier to pull electricity from the power and more respectful of the environment and neighboring communities. grid until 06:59 a.m., when the photovoltaic panels once again The idea came from the workers, who challenged themselves to feed the facility. generate initiatives to help care for our environment.

The innovative idea is designed to co-generate clean energy at the shop using an ‘On Grid’ technology—a system that is connected to the power grid—that also aims to self-generate power using a system of solar panels. By using the panels installed on the roof, we have been able to provide 60% of the power required for the shop during the day,” explained Muñoz.

246 247 DRIVING ELETROMOBILITY

In order to reinforce and promote This sustainable power system is the use of clean energy, SQM fully off-grid, operating 24 hours and Copec inaugurated the first a day, 365 days a year on 100% electric eco-charger in South solar power that is generated by America, in the Antofagasta the 46 solar panels installed at a Region, at its Salar del Carmen 15° angle in the 96-square-meter site. The eco-charger is designed plot built for this purpose. to contribute to sustainable development and environmental The system’s small-scale care by reducing carbon dioxide photovoltaic plant absorbs the (CO2) and greenhouse gas (GHG) sun’s energy which is then stored emissions. in the system’s lithium batteries and later distributed through an The initiative will constitute a electric charger equipped with a contribution to government- smart meter. driven energy policies such as “The 2018-2022 Energy Path,” Solar charging stations will designed to modernize the soon be available at our sites One of the most important Chilean power grid by way of a in Antofagasta, María Elena, aspects of this operational series of goals such as increasing Tocopilla and Salar de Atacama. milestone is that, in the mid- the supply of e-vehicles on term, SQM will be able to replace the market, expanding the a percentage of its diesel-fueled reach of the charging station vehicle fleet. For example, the network, fostering research into Salar del Carmen warehouse electromobility and participating now runs its daily errands in two in various public-private projects. electric vans.

248 249 ENERGY

SQM uses a high percentage SQM’s operations are also powered by electricity obtained from the of solar energy, which is an National Electric System (SEN) and cleaner fuels such as oil and natural important component of its gas. production processes for solar evaporation ponds at the facilities SQM has approximately 4,000 hectares of solar evaporation ponds, in Coya Sur, Nueva Victoria and which allow it to harness significant amounts of solar energy, Salar de Atacama. This method accounting for 91.1% of all energy consumed in our facilities. gives it an advantage over other DISCLOSURE 302-3 processes. It is only possible because the Atacama Desert, ENERGY INTENSITY 2019 where SQM’s operations are Energy Intensity (Excluding 2019 2018 2017 2016 located, has extremely high levels Solar Power)

of solar radiation, resulting in high TJ/MUS$ 2.98 2.52 2.43 2.81 evaporation rates and facilitating the processes employed to concentrate salts in ponds year- round.

250 251 DISCLOSURE 302-1/ 302-4

2019 ENERGY CONSUMPTION 2019 2018 2017 2016 91.1% Solar Power 57,952,904 98,312,397 116,675,659 115,512,541 OF THE TOTAL ENERGY USED Electricity 1,863,344 1,757,533 1,810,331 1,866,756 AT OUR OPERATIONS COMES Diesel 1,434,766 1,175,611 1,323,902 1,444,806 FROM SOLAR POWER Natural Gas 2,238,568 674,393 809,842 789,626

Liquid Gas 113,428 129,755 120,684 51,805

Bunker Fuel 28,740 515,583 1,050,644 1,035,708

Gasoline 660 426 275 486

TOTAL (GJ) 63,632,410 102,565,698 121,791,336 120,701,728

ENVIRONMENTAL INVESTMENTS

We make important investments to safeguard and preserve the environment around our operations and protect neighboring communities. Over the last three years, these investments came to ThUS$17,063 in 2019, ThUS$19,877 in 2018 and ThUS$15,255 in 2017.

In 2019, investments in this area were mainly related to compliance with environmental commitments to monitor significant variables and implementation of mitigation and environmental management measures. They also ensured responsible handling of substances and waste from the Company’s mining operations and production plants and environmental and sanitary conditions in accordance with current regulations.

ENVIRONMENTAL INVESTMENTS

Environmental Investments 2019 2018 2017

Environmental assessments 835 512 1,175

Sustainability, environmental monitoring and mitigation measures 6,757 10,202 6,491

Improvements to environmental/hygiene/sanitary conditions 5,452 4,403 2,989

Domestic and industrial waste management 3,836 4,221 4,111

Hazardous waste management 183 539 489

Total expenditures (ThUS$) 17,063 19,877 15,255

252 253 SQM EMPLOYEES RECEIVE ENVIRONMENTALTRAINING

One of SQM’s main commitments Training is designed to provide consists of guaranteeing that participants an opportunity to we operate sustainably, with discuss topics of interest such respect for the environment as the geological formations and neighboring communities, in the Salar de Atacama basin, thereby ensuring compliance with the Authorized Extraction current legislation. In keeping Plan approved under the with this premise, employees environmental permit (RCA), at our Salar de Atacama site the most relevant aspects of and the areas of Communities, the Chilean environmental Environment and Hydrogeology, institutional arrangements, participated in training focused project assessments under on learning more about SEA guidelines (Environmental miscellaneous initiatives that Assessment System) and projects enable us to work in harmony approved for the Salar de Atacama with our surroundings and avoid site. any potential impact associated with our activities. The main objective consists of providing sound knowledge and information as a basis for good decision making at the production level, while also understanding the effect of our day-to-day decisions on creating synergies between environmental care and concern and operations.

254 255 12

SQM, Present in the Community

256 257 SQM PRESENT IN THE COMMUNITIES DISCLOSURE 413-1/ 413-2 Our operations are located in farming, tourism, port operations SQM-driven northern Chile in the Tarapacá or mining, such as María Elena, and Antofagasta regions, which formerly a saltpeter town that is programs are feature a predominately dry desert now known for providing services implemented climate. Most of the population to the mining industry and as lives in the regional capital cities, a future hub for niche tourism. jointly with our outside of which the remaining There are also a considerable neighbors with population lives in towns or number of settlements of villages located at long distances different Atacameña indigenous whom we have from each other, connected by communities, particularly in the direct, trust-based roads as ground travel is the main municipality of San Pedro de form of transportation. Atacama. relationships.

There are small villages located near the Company’s operations that make their living from either

Llakan Mask Carnival, Tocopilla, Antofagasta Region.

258 259 Because of our location, we interact with the following communities and nearby villages that are associated Communities/ Region Operations Description Population Education with our centers of production: Towns Antofagasta Puerto de Antofagasta Regional capital, Population density: Avg. schooling for head of household: 12.1 Communities/ Tocopilla/ Capital of the years Region Operations Description Population Education 11.79 Towns María Province of Masculinity index: Elementary school attendance: 96% Elena/ Antofagasta, District: Preschool attendance: 49% Tarapacá Nueva Iquique Regional capital, Capital Population density: 83.70 Avg. schooling for head of 101.0 Coya Sur/ Population: 361,873 High school attendance: 74% Victoria of the Province of Iquique, Masculinity index: 98.3 household: 12.3 years Average age: 33.3 Salar de No. of households: Some higher education: 36% District: Average age: 34.3 Elementary school attendance: Indigenous peoples: Atacama/ 112,451 Completed higher education: 73% Population: 191,468 Indigenous peoples: 18% 95% 8% Salar del Men: 181,846 Avg. schooling for indigenous peoples: 10.6 No. of households: 66,986 Preschool attendance: 53% Carmen Women: 180,027 years Men: 94,897 High school attendance: 75% Women: 96,571 Some higher education: 38% Port of Tocopilla Capital of the Avg. schooling for head of household: 10.5 Completed higher education: Population density: Tocopilla Province of Tocopilla, years 74% 6.25 District: Elementary school attendance: 94% Avg. schooling for indigenous Masculinity index: Population: 25,186 Preschool attendance: 52% peoples: 10.3 years 98.2 No. of households: Average age: 34.5 High school attendance: 76% Pozo Almonte Capital of the Province of Population density: 1.14 Avg. schooling for head of 10,670 Indigenous peoples: Some higher education: 18% -La Tirana Tamarugal, District: Masculinity index: 133.7 household: 10.0 years Men: 12,481 8% Completed higher education: 74% Population: 15,711 Average age: 32.2 Elementary school attendance: Women: 12,705 Avg. schooling for indigenous peoples: 9.1 years -Pintados No. of households: 8,926 Indigenous peoples: 43% 86% Men: 8,987 Preschool attendance: 55% María María Elena District: Population density: Avg. schooling for head of household: 11.2 Women: 6,724 High school attendance: 56% Elena / -Quillagua Population: 6,457 0.52 years Some higher education: 20% Coya Sur No. of households: Masculinity index: Elementary school attendance: 95% Completed higher education: 1,959 173.0 Preschool attendance: 46% 78% Men: 4,092 Average age: 35.4 High school attendance: 79% Avg. schooling for indigenous Women: 2,365 Indigenous peoples: Some higher education: 27% peoples: 8.6 years 13% Completed higher education: 81% Avg. schooling for indigenous peoples: 10.5 Alto Hospicio District: Population density: 188.86 Avg. schooling for head of years Population: 108,375 Masculinity index: 100.1 household: 10.4 years Salar de District: No. of households: 33,178 Average age: 28.8 Elementary school attendance: San Pedro Population density: Avg. schooling for head of household: 11.1 years Atacama Population: 10,996 Men: 54,206 Indigenous peoples: 31% 95% de Atacama 0.47 Elementary school attendance: 93% No. of households: Women: 54,169 Preschool attendance: 56% -Rio Grande Masculinity index: Preschool attendance: 53% 4,144 High school attendance: 71% -Solor 127.4 High school attendance: 73% Men: 6,161 Some higher education: 16% -Toconao Average age: 34.3 Some higher education: 35% Women: 4,835 Completed higher education: -Talabre Indigenous peoples: Completed higher education: 82% 65% -Camar 52% Avg. schooling for indigenous peoples: 9.1 years Avg. schooling for indigenous -Socaire peoples: 8.6 years -Peine -Machuca -Catarpe -Quitor -Soncor -Larache -Yaye -Sequitor -Cucuter -Coyo

*Demographic data appearing in this table are taken from the results of the 2017 Census, conducted by the National Institute of Statistics, www.censo2017.cl

260 261 DISCLOSURE 103-1/103-2/103-3/ 413-1

OUR APPROACH TO MAP OF COMMUNITIES* COMMUNITY ENGAGEMENT

La Tirana For years the Company Pozo Almonte has focused its community Iquique Pintados engagement work on three main Quillagua areas of action when determining María Elena which initiates and programs it Tocopilla Río Grande Catarpe will develop. In 2019, we decided Quitor to expand our scope of work Solor Machuca Solcor Larache to include sports and healthy San Pedro de Atacama Yaye Antofagasta Sequitor living after noticing a particular Cucuter Coyo interest and commitment by Guatin our neighboring communities in participating in a wide range of Toconao Camar recreational and sports activities. Talabre Peine Socaire We have a renewed commitment to sports as we consider this an opportunity for more Main cities Towns Communities community involvement, skill building, discipline, inclusiveness, entertainment and a chance to contain disruptive behaviors such as drug use, and promote We encourage the formation of working wellbeing and healthy living. groups as opportunities for discussion

The four areas of actions and drivers of project design, evaluation that define our communityand follow up. engagement activities are as follows:

EDUCATION SOCIAL HISTORICAL HEALTHIER AND CULTURE DEVELOPMENT HERITAGE LIVING (SPORTS)

*Information outside the scope of assurance.

262 263 DISCLOSURE 103-1/103-2/103-3/ 413-1 We will conduct another conduct consultations and other DISCLOSURE 413-1 In order to measure our impact survey in 2020 but this time on community outreach initiatives COMMUNITY ENGAGEMENT AND WORKING GROUPS AND MULTI-SECTOR COORDINATION IN and prior to taking on new existing programs, followed by a that set our Corporate Social NEIGHBORING TOWNS IN 2019 commitments, we regularly assess report on the current situation. Responsibility program apart Engagement and Working Groups District: our programs as well as their Improvements and efficiencies as one that does not resort to performance and acceptance, will be put into place accordingly. outsourcing and that creates Chanavayita No. 2 Fishermen’s Union Working Group* Iquique using impact indicators. For the permanent community ties. Chanavayita No. 4 Fishermen’s Union Working Group* Iquique last two years, we have worked In addition, we are considering Chanavayita No. 5 Fishermen’s Union Working Group* Iquique with an independent consultant to the possibility of working with To ensure a greater commitment, Chanavayita No. Fishermen’s Union Working Group* Iquique a new software that is designed all company-driven projects apply a study called, “Comparative Caramucho No. 3 Fishermen’s Union Working Group* Iquique to boost interaction with our are accompanied by written Analysis and Assessment of SQM Public-Private Working Group "Agricultural and Commercial Improvements for the Farmers of Pozo Almonte CSR Programs,” and in 2019 we stakeholders and, monitor collaboration agreements that Pintados" decided to reassess this tool programs with accuracy, with establish the objectives and SQM and Tocopilla Fishermen's Union Working Group Tocopilla and change the instrument. controlled response times, so expected results as well as Women and Mining Group, made up of the Ministry of Mining, Ministry of Women and Gender Santiago Equality and Mining Companies. Apart from that, our community that we can assess and record our each party’s commitments and interactions while also integrating responsibilities. In this area, we relations team conducts periodic *Working groups for agreement effective beginning in 2020, within the framework of the SQM Environmental Impact Study (EIA) assessments to determine the additional factors such as data for seek support from institutions, for “Tente en el Aire”, whose areas of influence include coastal communities in the Province of Iquique in the Tarapacá Region: Cáñamo, Caramucho and Chanavayita. viability of each program year after compliance with GRI standards foundations and corporations year, alongside the communities and Dow Jones Sustainability specializing in the various fields In addition to the formal working groups we have established, we participate in other formal opportunities involved in each one. Index records. of expertise required by each for engagement and coordination with groups of individuals or associations in areas near our operations. project. All our operations and Also, during the second half of Engagement and Coordination with Local Communities Town expansion projects are subject 2019 we conducted a perception Work with CONAF, Pampa del Tamarugal Aymara Rural Indigenous Association and SQM Pozo Almonte to environmental assessments study that included a qualitative Work with Victoria Neighborhood Council Pozo Almonte in accordance with current assessment of our programs and Work with Fishermen’s Union No. 1 Chanavayita* Iquique areas of work, entitled “Study regulations, and company Work with Caramucho Union Nos. 1 and 2 and Cáñamo Union* Iquique on the Perception of SQM - controls and commitments. This includes measuring the impact Chanavayita social project (with a total of 11 organizations including Chanavayita Neighborhood Iquique Zona Norte Positioning and Council, fire department and sports clubs)* of operations on neighboring Reputation.” This survey was "Desafío Scrap" Hub Tarapacá, CORFO, INACAP, SQM Contest Jury Iquique conducted by the consulting firm communities. In that context, Business Advisory Council for William Taylor Methodist School Technical Alto Hospicio SURMEDIA. SQM personnel themselves invite citizen participation and Work with Quillagua community Quillagua Work with “Saberes y Sabores” program to reinforce culinary start ups Quillagua

Work with religious dance groups from María Elena and Pedro de Valdivia to reinforce and revive María Elena the Pampina popular religious identity and culture

SQM volunteer work in community of María Elena María Elena

Educational support for María Elena Technical/Humanities High School María Elena

Work with María Elena Rural Clinic María Elena

*Agreements effective beginning in 2020, within the framework of the SQM Environmental Impact Study (EIA) for “Tente en el Aire”, whose areas of influence include coastal communities in the Province of Iquique in the Tarapacá Region: Cáñamo, Caramucho and Chanavayita.

264 265 continuación: TOTAL CONTRIBUTIONS The total value of Engagement and Coordination with Local Communities Town COMMITED TO THE Work with María Elena Round Market merchants to foster startups María Elena COMMUNITY UNDER CORFO- SQM’s investment SQM LEASE AGREEMENT Work with municipality of María Elena and local artisans María Elena in the communities Among the commitments Moreover, as indicated in the Educational support and inclusiveness programs with Diego Portales de Tocopilla High School Tocopilla is ThUS$5,256, undertaken as part of the Corfo- Corfo agreement, SQM must Work with the Professional Association of Tocopilla Transportation Companies (Agretoc) Tocopilla SQM agreement, in 2019 we made deliver US$14 million to promote which does not Work with professionals from Cowork, the Municipality of Tocopilla, Provincial Government Tocopilla a contribution of US$3,090,988 Delegate and the Project Initiatives Assessment Committee sustainable development and include to the municipalities of San Pedro investment projects in the Salar Coordination of SQM volunteers with administrators from the Estrellitas del Pacífico Tocopilla Preschool, Pedro Aguirre Cerda Special Education School and the Tocopilla Senior Center de Atacama, María Elena and de Atacama communities that contributions Work with administration and technical teaching unit at the Sagrada Familia School Tocopilla Antofagasta. are duly registered with CONADI. provided under Work with administration of the Domino Latrille School for co-op accreditation and conversion Tocopilla It also calls for a US$ 10.8 million into a humanities and technical professional high school This money is part of the 1.7% contribution to the Antofagasta the CORFO Work with municipality of Tocopilla to implement community initiatives Tocopilla of our sales, which totaled Center for Clean Technology agreement. US$13,171,294 during the period, (R+D). The contributions “Agricultural Improvement Program for Río Grande Farmers” San Pedro de Atacama that SQM must contribute committed to are in the process of Work with “Toconao Sustainable Tourism Project” San Pedro de Atacama annually until 2030 when the being transferred while awaiting Work with Toconao Atacameña Community San Pedro de Atacama CORFO agreement in the Salar de completion of the formalities Work with Socaire Atacameña Community San Pedro de Atacama Atacama expires. provided under the agreement.

Work with Talabre Atacameña Community San Pedro de Atacama This contribution of 1.7% is divided Work with Lickanantay High-Altitude winemakers’ cooperative, manager and board San Pedro de Atacama as follows: Education work with DAEM SPA San Pedro de Atacama

Education work with the SPA Municipal Education Department San Pedro de Atacama • 1% Antofagasta Regional Go-

Toconao Wine Harvest-Cultural Fair Working Group San Pedro de Atacama vernment for public investment Public-private work led by the Ministry of Public Works for emergency assistance coordination San Pedro de Atacama • 0.3% Antofagasta Regional Government for product development

• 0.2% Municipality of San Pedro de Atacama

• 0.1% Municipality of María Ele- na

• 0.1% Municipality of Antofa- gasta

266 267 13

Atacama Tierra Fértil program

268 269 ATACAMA TIERRA FÉRTIL PROGRAM

DISCLOSURE 413-1 The Atacama Tierra Fértil Program Atacameñan agriculture is one of Launched in 2008, SQM’s Atacama operates in the following towns: its distinctive features. Tierra Fértil Program has helped Pozo Almonte, Quillagua, San launch numerous agricultural Pedro de Atacama, Toconao, Over the years the program initiatives in the driest desert on Talabre, Río Grande and Socaire. has received support from the planet. These programs are the following organizations: part of our essence given our Designed to provide farmers Antofagasta Regional ranking as the leading fertilizer with technical expertise and Government (FIC Projects), producer in the world, selling support for their crops and Regional Public Works Agency specialty products formulated production, the program’s staff of Antofagasta (Hydraulic Works to produce large yields with low of multidisciplinary professionals Bureau), Regional Agricultural water consumption. Moreover, provides tools for innovation to Agency of Antofagasta and our staff of experiencedimprove crops and sales of high- Tarapacá, Foundation for agronomists works directly with quality, value-added products. Agricultural Innovation (FIA), each individual farmer, advising SERCOTEC, National Corporation Respecting the unique cultural Workers at hydroponic greenhouse in Pozo Almonte, Tarapacá Region. them accordingly so they will for Indigenous Development aspects and characteristics obtain the best possible results. (CONADI), National Institute of ancestral Aymara and for Agricultural Development

270 271 (INDAP), as well as the municipal In late 2019, we joined efforts hydroponic crops and produce governments presiding over with CONAF and the Pampa cheese for sale on the local territories housing the indigenous del Tamarugal Rural Aymara market. associations and communities Indigenous Association to begin located near our operations. a three-year project starting It will train anyone wishing to in 2020 aimed at building a grow their own hydroponic DISCLOSURE 413-1 30-hectare alfalfa production crops, providing guidance as POZO ALMONTE unit in the Pampa del Tamarugal a pilot program to identify National Reserve in the district of the best business processes POZO ALMONTE FARMERS RECEIVE Pozo Almonte. SQM committed and production techniques. 40 TONS OF ANIMAL FEED to designing and building the Moreover, a cooperative staffed alfalfa production unit as well as initially by six members has been Members of the Pampa del financing equipment, supplies and set up to manage the goat cheese Tamarugal Rural Aymara materials. This unit is expected production facilities. Association, consisting of 48 to serve as a source of forage members, received feed for their and feed for small stock owned Owned by the Pozo Almonte goats and sheep in an effort to by participating association Municipality and located at the “Los boost small stock farming in Pozo members. Pinos” campground, the research Almonte. This is the first step center spans more than 1,150m2 taken by a working group made POZO ALMONTE AGRICULTURE divided among two buildings: up of representatives from SQM RESEARCH AND DEVELOPMENT one is used to grow hydroponic and the local association. crops and the other one houses CENTER Agricultores Colonia de Pintados, Pozo Almonte, Región de Tarapacá. the cheese factory (duly certified The agreement entails providing As part of our commitment by health authorities) along with supplementary forage and feed of using our expertise as a a refrigerated delivery truck to for the goat and sheep herds along specialty fertilizer producer to ensure the cold chain remains with specialized veterinary care foster agricultural production, intact. to enhance herd management we opened the Pozo Almonte and animal production and Agriculture Research and In addition to the infrastructure, reproduction techniques. The Development Center in 2019. SQM provides technical forty-ton supplementary feed assistance and supplies. delivery consisted of: 30 tons The initiative is outlined in of alfalfa in blocks and 10 tons the agreement signed by the of concentrated feed for the Municipality of Pozo Almonte goat and sheep owned by the and SQM. The only one of its association’s members. This is a kind in the Tarapacá Region, the one-time, year-long project. center’s objective is to develop

272 273 2019 HIGHLIGHTS PROMOTING AGRICULTURE IN SUPPORT PROVIDED: PINTADOS – POZO ALMONTE • Tierras de Jehová Multicul- • 13 official visits received In 2019, SQM continued its tural Indigenous Association: • 220 people have toured the work with the Pintado Farming the association’s eight farmers facilities Colony through the Tierras de and their families have recei- Jehová Multicultural Indigenous ved support for enhancing • 3 trainings courses held: “Ma- Association and the Juventud soil structure and texture and naging Pruning and Fruit For- del Desierto Aymara Indigenous purchasing agricultural ma- mation in Bell Pepper Plants,” Association, while also providing chinery. “How to Make Gourmet Goat specific support to local farmers. • Juventud del Desierto Ayma- Cheese” and “Basic Course in ra Indigenous Association: Hydroponics for Sustainable The work has focused on fostering The association’s eight far- Farming.” good agriculture practices mers and their families have through guidance from SQM received support for soil en- • 2 student interns from the Pica professionals in enhancing soil hancement, irrigation and fer- Vocational High School are structures with sand and washing tilization techniques, and pur- specializing in hydroponic far- to recover new arable soil; chasing agricultural materials, ming techniques. assisting with the implementation equipment and seeds. of irrigation systems designed • 1 student intern from the Te- to save water; providing chnical Professional School agricultural equipment for soil for Higher Education in Agri- preparation, seeds and plants, all culture of which is supplemented with a plant nutrition program. Other initiatives have also been carried out such as growing melons and watermelons, planting grape vines and experimenting with coconut fibers as a means to introduce new techniques as alternatives to farmland substitution. THE WORK WITH FARMERS HAS FOCUSED ON FOSTERING GOOD AGRICULTURE PRACTICES THROUGH GUIDANCE FROM SQM PROFESSIONALS.

274 275 A total of 5,297 bottles of wine were produced in 2019—up 6% from 2018— which is quite a success considering the extreme climate events affecting the region this year.

SQM’S SUPPORT CENTERED AROUND PROVIDING TECHNICAL MONITORING AND CONSULTING DURING EVERY STAGE OF PRODUCTION, WITH AN EMPHASIS ON THE COOPERATIVE’S WORK AND THE COMBINED EFFORT OF THE TEAM OF ASSOCIATES.

QUILLAGUA SAN PEDRO DE ATACAMA

HYDROPONICS IN QUILLAGUA AYLLU WINE

This project was started back boost sales in nearby cities; it The 10-member cooperative As part of the SQM Atacama Tierra desire to develop a wine industry of the vineyard. These unique in 2013 with the opening of the also began operations at its new admitted six new members to its Fértil Program, a group of 19 on the basis of modern techniques features are what have enabled 1,000 m2 Quillagua greenhouse research greenhouse. ranks. farmers from Celeste, Toconao, and technical assistance from the wine to be sold at hotels built to grow lettuce and the San Pedro de Atacama and Chilean and international expert and restaurants throughout the Quillagua Hydroponics Farming In 2019, this project entered a new Additionally, the cooperative Socaire produce high-altitude consultants instead of traditional Antofagasta Region. Cooperative. In 2018, the phase involving the remodeling began discussions with the wine at more than 2,400 meters methods. cooperative turned its efforts to of the main greenhouse, Cencosud supermarket chain above sea level. Wine is currently produced from revamping its sales program with replacing the crop bed system, in the Tarapacá Region to sell Ayllu is a signature wine. Each the following grape varieties: support from SQM to purchase energy and water circulation its lettuce production in 2020. Ayllu vineyards celebrated their bottle is labeled with the number Chardonnay, Petit Verdot, Pinot a refrigerated delivery truck to system and replacing the roof. The objective is to revive the seventh harvest in 2019. Ayllu, of square meters, number of Noir, Syrah, Malbec, Muscatel, the cooperative and its greenhouse which stands for community in vines per lot, number of bottles traditional Chilean grape País and sales. Kunza, is an example of the local produced per year and elevation the recently added Sauvignon Gris.

276 277 AYLLU WINE CELEBRATED ITS HYDROPONIC PRODUCTION VII HARVEST FESTIVAL PROGRAM IN SOCAIRE AND TALABRE A total of 5,297 bottles of wine More than a thousand people at the festival, most notably local were produced in 2019—up 6% arrived in Toconao to participate celebrities such as Margarita This hydroponic production from 2018—which is quite a in the VII Toconao Wine Harvest Chocobar, Kunza Lari, El Gran project was launched back in success considering the extreme Festival. This cultural, family event Accidente and others. 2016 in Socaire as a local research climate events affecting the celebrates the value that the center for identifying which crop region this year. Lickanantay roots hold for this Organized by the Lickanantay species and varieties are most unique Ayllu wine made by local Vineyard Cooperative, this year’s suited for hydroponic production SQM’s support centered around Atacameña vineyards. celebration added novel lectures in the village. providing technical monitoring (“Chile and its Wines” and “High- and consulting during every stage Festival goers had the chance to Altitude Wines”) and tastings, At present, 6,000 heads of lettuce of production, with an emphasis taste all of the high-altitude Ayllu which went over quite well with are grown monthly at the 1,000m2 on the cooperative’s work and wine varieties at this event held visitors. production site, which employed the combined effort of the team with support from the Municipality four full-time local employees in of associates. of San Pedro de Atacama, the 2019. Toconao Atacameña Community and neighborhood council and The same program was replicated SQM. Several artists performed in the community of Talabre, where they also decided to grow fruit and leafy vegetables in live substrates, which led to hiring five traditional farmers.

The program turned its efforts to upgrading and repairing infrastructure in 2019 along with building new civil works to support production, while continuing to provide technical support and monitor production.

278 279 ALFALFA CROP STARTUP PROGRAM FOR REVIVING PROGRAM GARLIC PRODUCTION

Established in 2008 in Talabre, Activities carried out in 2019 under this program began by sowing 0.2 the Rio Grande garlic production hectares of drip-irrigated fields program consisted of helping of alfalfa in order to boost water disinfect farmland with products efficiency and crop yield. Once that have a low impact on local the technique was approved ecosystems, and repeating the by the farmers and the local treatment when diseases were community in 2011, the program detected further on in the cycle. A was expanded through support total of 23 farmers participated in from the Foundation for Farming the garlic farming program, 15 of Innovation to include research which were assigned to growing and training. garlic while the remainder tended rotational crops designed for Efforts in 2019 focused on setting disease control. Production up alfalfa farms in sector 3 and levels remained stable at 70% standardizing irrigation systems. on average, which has had a The fields were cut three times considerably positive impact on during the season, with yields of the community. 12, 15 and 20 for each respective cutting. A new Río Grande farm (Hierbas Buenas) joined the project in 2019, adding 30 hectares of arable land. The first wave of support consisted of preliminary civil works.

280 281 SUPPORTING OUR NEIGHBORS IN EMERGENCIES

In early 2019, some communities Workers employed at our Salar In Río Grande, the community near SQM’s operations suffered de Atacama operations played received materials to temporarily the effects of highland winter a key role in restoring the road reconstruct main access points weather. network. They were assigned to into town along with drinking clearing the roads and entrances water and other items. In Socaire, As a preventative measure into nearby villages located along we delivered drinking water and in Tarapacá, specifically thethe Toconao to Talabre stretch, fuel to ensure the hydroponic municipality of Pozo Almonte, Route CH23 and the access road greenhouse would continue we provided two pieces of leading up to the Andino Camp. operating and not run the risk of machinery in Nueva Victoria losing its crops. to build a temporary rainwater SQM, the Chilean Army, the catchment and storage system local municipal government and In other villages, we gave families to prevent flooding in La Tirana. Regional Mining and Public Works polyethylene sheets to protect We also donated 500 bottles of agencies all joined forces to clear their homes, farms and generators water to the townspeople living and level main and secondary in the event of power outages. in remote highland villages. This roads leading to homes and other donation was delivered directly to sectors in San Pedro de Atacama the Municipality of Pozo Almonte. and its family clans.

Along the coast, specifically in Water tanker trucks were provided Chañavayita, we donated 72 tarps to distribute potable water to to protect homes. residents in Talabre and Toconao. Specifically, in Toconao residents In Quillagua, we worked with were able to protect their homes the Municipality of María Elena with plastic covers. Furthermore, to restore electricity, distribute SQM coordinated efforts to divert plastic coverings to protect water through canals. houses, and deliver drinking water from Maria Elena, as well as four, 10-liter jugs of water each to 100 Quillagua families.

Workers at Salar de Atacama operations supporting neighbors during an emergency, Antofagasta Region.

282 283 14

Fostering Production Development

284 285 SUPPORTING INDUSTRIAL DEVELOPMENT

Closing event for Desafío Scrap contest, Tarapacá Region.

DISCLOSURE 413-1 creating a new line of business A jury comprised of regional IQUIQUE for start-ups. SQM joined the experts voted on the wining Challenge in encouraging local project entitled “Ecowood SQM’S “SCRAP CHALLENGE” DRIVES entrepreneurs and innovators Packaging,” led by Franklin THE ENTREPRENEURIAL SPIRIT IN in the wider northern area, Zepeda. The entrepreneur TARAPACÁ Arica and Parinacota, Tarapacá designed an environmentally- and Antofagasta regions to get friendly packaging solution for The “Scrap Challenge” organized involved. Chilean fruit exports in order to by Hub Tarapacá and supported do away with plastic pieces. by the Chilean Development The first step in the proposal Corporation (Corfo) and SQM, consisted of identifying the In addition to first place, three aroused the interest of twelve gaps, followed by tackling the other projects were awarded an projects. The purpose of the issues from the standpoint of honorable mention. They are also challenge was to add value traceability, use or final disposal receiving support to launch their to the non-hazardous waste for each of these materials, and business and foster new regional generated at SQM’s Nueva Hydrogeological monitoring. then developing individual waste startups. Victoria site, including cardboard Photo credit: Claudio Cayo. SQM Photography Contest. management plans for each and wooden pallets, thereby waste stream.

286 287 DISCLOSURE 413-1 The Company supported and QUILLAGUA engineer to develop adhesion MARÍA ELENA María Elena locals flock to the POZO ALMONTE managed a project aimed at standards required by CONAF Redonda Market to stock up on a QUILLAGUA’S AGROFORESTRY AND REOPENING THE EMBLEMATIC providing them the hot water for sustainable exploitation of variety of goods. The remodeling TOURISM PROGRAM TAKES SHAPE ROUND MARKET HOT WATER PROVIDED they have always wanted. This the forest; consultant services process involved certain structural SUSTAINABLY IN VICTORIA was made possible through for designing the logo for the changes that were carried out in SQM donated machinery With a view to providing tools and a partnership between the coal and advice for local small accordance with regulations and The objective is to provide and training that will enable support for local businesses, SQM Municipality of Pozo Almonte and business owners who designed suggestions from the Ministry of support to at-risk families living the Indigenous Agroforestry supported reconstruction of the SQM that installed solar-heated an artisan workshop proposal and Culture, Art and Heritage. in the Tamarugal pampa, near the Association in the oasis of María Elena Round Market (Feria water heaters, bathrooms and alternatives for manufacturing former Victoria Office. This is the Quillagua to add value to one Redonda), which was destroyed other infrastructure that truly pieces. The process involved rebuilding closest human settlement to our of the valley’s most important in a fire in 2018 that consumed improved the residents’ quality several stalls and installing operations. resources: the Algarrobo tree 25% of the structure. The market of life. The initiative entailed an Plans have been drawn up to build security cameras, among other and its derivatives. In 2019, finally opened its stalls after investment of over 30 million a craft workshop in 2020. The improvements. efforts focused on defining the several months of work. pesos. shopkeeper and site are already Agroforest Cluster and other arranged. measures such as hiring a forestry

288 289 DISCLOSURE 413-1 SUPPORT FOR THE FISHERMEN OF TOCOPILLA TOCOPILLA ESPACIO EMPRESARIAL EN TOCOPILLA “Puerto Cowork” also supports the The 102 members of the Tocopilla program “Mueve Cruza y Enfrenta” Fishermen’s Independent We teamed up with La Semilla (Move, Cross and Confront) Union received for the second Foundation in Tocopilla to to encourage innovation and consecutive year work tools as promote entrepreneurship, entrepreneurship in children part of initiatives agreed to by the partnerships, training and business and adolescents, providing Company and the fishermen. development by supporting technological tools based on “Puerto Cowork,” a hub where robotics and 3D printing, helping Consumables, materials and local startups can meet up. For participants to learn about and tools were divided up into two two straight years we focused develop initiatives in this field of deliveries made in 2019. The on launching and consolidating technology. first one took place in May and projects but in 2019 we changed consisted of 105 meters of fishing gears and began focusing on The program was first designed net, 38 full-body neoprene wet 161 REGISTERED IN THE “ATRÉVETE Y EMBARCATE preparing entrepreneurs to apply for youth ages 15 to 18. However, suits and six spools of fishing PROGRAM” for public and private funding. as many younger children line. The second one took place This new approach has allowed also expressed interest, it was in December and consisted of entrepreneurs and business broadened to include kids as equipment for 31 shellfish divers owners to secure Sercotec 2019 young as 10 years old. and consumables for fishermen funds from programs such as: such as fishing line, nets, hooks, Capital semilla, Capital Abeja and boots, wet suits and other items. Crece. This initiative is designed to support the local fishing village in the Port of Tocopilla, which has been affected by high seas and swells on several occasions.

290 291 DISCLOSURE 413-1 YOUNG ATACAMEÑANS STAND • Awareness of safety regula- SAN PEDRO DE ATACAMA OUT AS “LEADERS IN EL LOA” tions and how operations are organized. FROM MINE CAMP TO FIVE-STAR Eduard Varas from Socaire and Understanding of production HOTEL Wilfredo Cruz from Toconao were • stages and technical proces- recognized along with eight other ses for operations. SQM executives and the President young people from the province of the Toconao Atacameña for their important contribution • On-site knowledge of good Community signed an agreement to the community by furthering practices for operational or li- marking the official handover sports and the wine industry in thium production processes. of former SQM camp facilities their respective communities. located in the village of Toconao. SQM provides support to the El • Knowledge of quality stan- Loa Leadership Program. dards that enable continual This process that began a few improvement of processes. years ago entailed joint efforts by EXPERT APPRENTICES FOR SQM This program brought together the community and SQM, with 26 apprentices—men and particularly active involvement For the second year, the Operator women from the communities by members of the Toconao Apprentice training program of Toconao, Calama, Peine, community. Several milestones at SQM Salar prepared new Socaire, Camar and San Pedro de were met during this process such professionals from neighboring Atacama. as: provision of the architectural communities to take on new jobs plans for a resort, specialized with high performance, efficiency Participants acquired both soft committees comprised of and quality standards. skills and technical tools. At the community members that defined end of the apprenticeship they a suite of relevant aspects such The program prepared by the were offered open-term contracts as branding, tourism activities, Company is backed by the know- in different areas of SQM’s Salar interior design and other how, knowledge, innovation and de Atacama operations. amenities that will be available experience of SQM workers. at the resort. At the same time, a working group was formed to It is structured around four core reach agreements for property topics: SQM EXECUTIVES AND transfer and assistance during the THE PRESIDENT OF THE TOCONAO ATACAMEÑA next phase of the project.. COMMUNITY SIGNED AN AGREEMENT MARKING THE OFFICIAL HANDOVER OF FORMER SQM CAMP FACILITIES LOCATED IN THE VILLAGE OF TOCONAO.

292 293 DISCLOSURE 413-1

ANTOFAGASTA

CONTRIBUTING TO THE SUPPORTING NEIGHBORS AND SOCIAL MOBILTY OF THE MOST THEIR EMPLOYABILITY VULNERABLE We are committed to supporting At the “La Chimba” Technical the communities near our Training Center, located in the operations in the Tarapacá Luz Divina squatter settlement in and Antofagasta Regions, and Antofagasta, sixty students travel as such we continue to hold from different parts of the city “Employability Workshops.” Run to take classes that end after 10 by SQM psychologists who teach pm at night. The long distances, participants how to prepare for commute times and limited job interviews and write resumes, offering of public transportation these workshops also provide in the area affect studentparticipants the opportunity to attendance. apply for job openings available in the Company. These workshops SAN PEDRO DE ATACAMA In order to reduce student drop- seek to increase the number of locals working at SQM sites. out rates stemming from the SECOND-CHANCE EDUCATION complex commute, SQM and PROGRAM This effort is carried out in the Recrea Foundation donated conjunction with various 20 electric bikes to the students, For the second consecutive Employment Opportunity offices neighbors and Father Felipe year, SQM worked with the located in area towns such as Berríos, the priest in charge of Municipality of San Pedro Pozo Almonte, Alto Hospicio, the training center. These bikes de Atacama’s Employment the municipality of María Elena, will help improve the students’ Intermediation Office (OMIL) to Sence Calama and Antofagasta commutes to and from class. develop the School Validation and school in towns near our These sustainable bicycles have and Remediation Program, which operations. an 80-kilometer range. gives individuals from the town of San Pedro de Atacama and We are also actively involved in job neighboring areas the chance fairs organized by municipalities to complete their primary and and universities: secondary studies. This initiative equips them with a tremendous tool to access better opportunities in the job market.

294 295 15

Furthering Community Development

296 297 DISCLOSURE 413-1 The SQM-driven education programs FURTHERING COMMUNITY seek to provide tools and skills to EDUCATION students living far away from urban centers in order to close the gap SQM has undertaken a series resources and essentially serve support is in response to unmet of educational initiatives that as a bridge between these needs in the regions where between rural and urban education. focus on closing existing gaps establishments and the Company we operate and also with the in education establishments by involving SQM employees understanding that the bulk of located near its operations. These in some of the educational our workforce and their children initiatives aim to expand teachers’ processes, especially at the are trained and educated in these knowhow, provide teaching technical professional level. This regions.

298 299 SCHOOL PROGRAMS IN NEIGHBORING COMMUNITIES

Support for Support for Mathematics Language Psycho- Cultural, Mathematics Language Psycho- Cultural, Christmas Extracurricular English Vilti Semman Christmas Extracurricular English Vilti Semman School Town Assistance Assistance pedagogical Music, Dance School Town Assistance Assistance pedagogical Music, Dance Celebration Workshops Workshop Program Celebration Workshops Workshop Program Program Program Program or Similar Program Program Program or Similar Initiatives Initiatives

Oasis en el Desierto School Pintados     G-30 School Socaire  

Ignacio Carrera Pinto Primary G-29 School Talabre Quillagua         School in Quillagua G-27 School Peine   María Arturo Pérez Canto School D-133   Elena G-22 School Camar    Bernando O´Higgins School Tocopilla   G-15 School Solor  

Domingo Latrille High School Tocopilla  Río Río Grande School Grande    República de los Estados Unidos Tocopilla   School Lickanantay Preschool in Toconao Toconao 

Pablo Neruda School Tocopilla   Miscanti de Socaire Preschool Socaire 

Gabriela Mistral School Tocopilla   Sol del Norte Preschool Camar 

Arturo Prat Chacón School Tocopilla   Papin Pahir Talabre 

Carlos Condel School Tocopilla   San Chañarcito Preschool Pedro de  Atacama Sagrada Familia School Tocopilla  San Javiera Carrera Preschool Tocopilla   Lickanantay Preschool Pedro de  Atacama Tocopilla Hogar de Cristo Preschool   San Paunna Lickan Preschool Pedro de  Estrellita del Pacífico Preschool Tocopilla  Atacama San Pedro Rio E-26 School de Atacama    Rio Grande Preschool Grande 

Toconao Rio Toconao Educational Complex     Jardin Infantil de Rio Grande Grande 

300 301 DISCLOSURE 413-1 This is our third year supporting an MATHEMATICS ASSISTANCE PROGRAM internship overseas in Finland by

For the seventh year in a row, awarding grants to the following three the collaborative effort between professionals who stand out for their SQM and the Crea+ Foundation continues to bear fruit both performance and commitment to their qualitatively and quantitatively. students: Sandra Chávez, Principal of This well-rooted program still pulls in good results and is the San Roque de Peine School; Carla valued by both teachers and Michea, teacher at the Arturo Pérez administrators at participating establishments. Canto school in María Elena; and Denissa Opazo from the Oasis en el Desierto During 2019, the program had a direct impact on 1,674 students School in Pozo Almonte. and 49 teachers at the following participating schools:

“MÁS MATEMÁTICA PROGRAM” IN SCHOOLS IN TOWNS NEAR SQM OPERATIONS IN 2019

No. No. No. School Region Administrative No. Levels Teachers Students Staff

Oasis en el Desierto School Colonia de Pintados 2 3 8 91

Ignacio Carrera Pinto Primary Quillagua 1 1 6 22 School

Arturo Pérez Canto School María Elena 3 13 8 541

E-26 SPA San Pedro de Atacama 2 14 6 705

Toconao Educational Complex San Pedro de Atacama 2 7 12 225

San Roque de Peine San Pedro de Atacama 1 2 6 16

San Bartolomé de Socaire San Pedro de Atacama 1 3 6 28

Cámar San Pedro de Atacama 1 1 4 13

Sólor San Pedro de Atacama 1 2 6 32

Talabre San Pedro de Atacama 1 1 3 1

Students participating in environmental workshops at Sagrada Familia School in Tocopilla.

302 303 SCHOOLS WITH OUTSTANDING RESULTS IN MATH: The program expects to help new generations improve their literary and reading skills by working hand in hand with language teachers, deploying and strengthening diverse tools to motivate students.

Classes In 2019, the School 2018 SIMCE Scores Published in 2019 Tested Consulting services provided to the +Lenguaje Program in 2019 were Math Assistance earmarked for the corresponding San Pedro de Atacama schools: 300 Points, 10 more compared to 2018, 21 Toconao 10th more than the municipal average and 36 more Program benefited Educational Grade Complex than the national average 1,674 students No. No. No. School Region Administrative No. Levels Teachers Students Oasis en el 262 Points, 28 more compared to the last test and teachers in Staff Desierto School 6th grade taken in 2016, 27 more than the municipal in Pintados average and 11 more than the national average the Tarapacá E-26 SPA San Pedro de Atacama 2 14 6 706 Toconao Educational Complex San Pedro de Atacama 2 5 6 102 and Antofagasta San Roque de Peine San Pedro de Atacama 1 2 6 16

regions. San Bartolomé de Socaire San Pedro de Atacama 1 3 6 28

Cámar San Pedro de Atacama 1 1 5 12

Sólor San Pedro de Atacama 1 2 6 32

Talabre San Pedro de Atacama 1 1 1 1 PROGRAMA DE APOYO + LENGUAJE

The + Lenguaje extra help program was implemented in San Pedro de Atacama municipal schools in 2019 OTHERS JOINT INITITAVES WITH following a trial run in late 2018. CREA+

EXPLORING THE USE OF EXAM Aimed at boys and girls in 1st to 6th grade, this program has been implemented to fill educational gaps +THEATER IN TOCONAO wrap up their academic years by READER and boost test scores. Its primary objective consists of improving the students’ reading quality, speed and saving them time on correction, In collaboration with Crea+ comprehension by providing technical support to teachers in the area, administering tests and evaluations processing and analyzing Foundation, a Theater Workshop In an effort to incorporate useful and fostering activities related to reading comprehension. information. This initiative is was held in Toconao and San innovations in the schools, an scheduled to continue in 2020. Pedro de Atacama schools. The Exam Reader pilot program was activity gathered students from set up at a few of them. This both schools who were interested program consists of training in learning from a multidisciplinary teachers to use the application to team of professionals skilled in scan sheets of test answers and theatrical techniques, acting, then instantaneously process the makeup and script writing, results by uploading them to the culminating in a show at the on-line platform called Power workshop’s closing ceremony BI. The system helps schools held before the community.

304 305 DISCLOSURE 413-1 ENVIRONMENTAL EDUCATION

EDUCATION IN THE PINTADOS ALONGSIDE COMMUNITIES AGRICULTURE COMMUNITY As part of our commitment to We continue to provide ongoing sustainable development and support to the Oasis en el education, we have promoted Desierto School in Pintados, near initiatives that transfer knowledge our Nueva Victoria site. In 2019 to students and communities we launched a few initiatives such regarding environmental care as extra-help workshops, folk so that they can make decisions dancing, music and “Story Time” to about their surroundings and encourage children to read. SQM create habits that prevent and also contributes to celebrations resolve environmental issues such on special dates, like Christmas, as water management, separating or educational activities, such as waste streams, sustainable crops, World Book Day. These activities etc. benefit students from the school and are in addition to the support provided by the Más Matemática Program.

SINCE 2015, WE HAVE SUPPORTED THE ENVIRONMENTAL EDUCATION PROGRAM AT THE CENTER FOR ENVIRONMENTAL EDUCATION (CEDAM FOR ITS SPANISH ACRONYMS) IN THE PAMPA DE TAMARUGAL NATIONAL RESERVE IN THE TARAPACÁ REGION AS PART OF COMPENSATORY MEASURES FOR THE PAMPA HERMOSA ENVIRONMENTAL QUALIFYING RESOLUTION. WE ALSO SUPPORT SCHOOL AND INSTITUTIONAL VISITS. THIS PROGRAM IS PART OF THE ENVIRONMENTAL EDUCATION OBJECTIVES DEVELOPED BY THE NATIONAL FORESTRY CORPORATION (CONAF FOR ITS SPANISH ACRONYMS) IN THE TARAPACÁ REGION.

Environmental Trailblazers in Tocopilla.

306 307 DISCLOSURE 413-1

MARÍA ELENA

2.6 TONS OF RECYCLED MATERIAL ENVIRONMENTAL TRAILBLAZERS THE “I LOVE YOU, WATER” IN MARÍA ELENA IN MARÍA ELENA PARTICIPATED CAMPAIGN IN IMPORTANT ENVIRONMENTAL In order to foster environmental FAIR Part of the Company’s ongoing care and education, we efforts to preserve water resources supported a teaching and To commemorate Global involve providing support for the recycling program in María Elena Recycling Day, entities and first environmental fair held in called “Reciclando desde el Aula organizations involved in the María Elena in collaboration with y el Hogar” (“Recycling from the circular economy in María the Mr. Barber Foundation and the Classroom and Home”). Schools, Elena and a group of students Municipality of María Elena. This daycare centers and the local from the Humanities and fair also marked the closure of the municipality joined forces in Science Professional Technical “I Love you, Water” Campaign. initiatives to promote recycling High School took part in the such as training, participation in recycling fair co-organized by This campaign set out to raise fairs, the Locos por el Reciclaje” UCN’s Recicla Program and the awareness about the importance (“Crazy about recycling”) contest Regional Environmental Agency of using water efficiently and and reuse workshops. Everything in Antofagasta. showcase various water savings was organized by the Mr. Barber techniques. The campaign Foundation with support from This initiative was designed included the following initiatives: SQM. to reinforce environmental installing 100 water saving kits; a stewardship and create awareness major field awareness campaign; Local María Elena residents regarding waste reuse. and a school contest to foster attended educational lectures creative ways students can save aimed at making them more Additionally, an electric trimoto water. All of these activities were informed for responsible was acquired to reinforce the aimed at involving and educating environmental decision making. work plan drawn up by the three the community. By the end of the campaign, 2.6 partners (the Municipality of María tons of recycled material had Elena, Mr. Barber Foundation and The Company pledges to THE RECYCLING CAMPAIGN been collected from recycling SQM). The 500-kilo tri-motor continue supporting this type of IN MARÍA ELENA MANAGED powered by lithium batteries initiative in the future through TO COLLECT 2.6 TONS centers located in different parts OF RECYCLED MATERIAL of the district and at schools, is 100% electric. These pro- new programs targeted especially FROM RECYCLING CENTERS making a positive impact in the recycling initiatives first began at children. LOCATED IN DIFFERENT area. in 2018 when the first recycling PARTS OF THE DISTRICT center was opened in María Elena. AND AT SCHOOLS.

308 309 DISCLOSURE 413-1 TOCOPILLA SAN PEDRO DE ATACAMA DRIVING ROBOTICS AND SCIENCE NIKOLA TESLA EXHIBIT PROGRAM AIMED AT SUPPORTING SUPPORTING EDUCATION WITH VILTI SEMANN CAPTIVATES VISITORS IN EXPERTISE IN AGRICULTURE AT THE ADMINISTRATION AT THE SANTIAGO, ANTOFAGASTA SQM is a supporter of the ViLTI The most noteworthy achievements AND IQUIQUE LIKAN ANTAI HIGH SCHOOL MUNICIPAL EDUCATION OFFICE SeMANN Program. Managed by this year included sending three Started back in 2008 as a means to Professionals were hired to The Company supported yet Universidad Católica del Norte (UCN) students from Tocopilla schools to As part of SQM’s contribution provide comprehensive support train participants in a variety of another initiative during the in Tocopilla and in its fourth year, this the National Robotics Tournament to education and culture, the to agricultural programs taught different areas of interest while reporting period. The Municipal program is designed to boost primary held in Santiago, where they got to Company was involved in the at the Likan Antay High School, they also completed a practical Education Administration education among boys and girls ages not only experience the trip itself but successful exhibit celebrating this program provided benefits course on high school plots Program was designed to meet 4 to 9. also spend time with boys and girls the Serbo-Croatian’s to four 11th graders and six 12th throughout the school year. the real needs of education from other regions. contribution to the 2nd graders in 2019. The initiative Here they learned about both establishments, such as training In 2019, a total of 80 students from Industrial Revolution, entitled Also, for the first time this year, the aims to build the necessary skills modern and traditional farming teachers and teaching assistants, seven education establishments in “Nikola Tesla, the Future ViLTI SeMANN Program was held in and capacity in students as a way techniques for a well-rounded transfers, transportation and Tocopilla participated in this program. Belongs to Me” and shown María Elena, benefiting 20 boys and to support regional agriculture education in agriculture. delivering teaching materials to Its objectives are to: close educational in Santiago, Antofagasta and girls ages 5 to 7 years form the Arturo and environmental care, while traveling teachers who teach gaps, promote creative talent and Iquique. Open to the public, Pérez Canto School. Similar to their also transferring detailed at different schools, etc. This is contribute to equal opportunities participants were able to enjoy peers in Tocopilla, these children knowhow and experience in in addition to the Multi-Grade in education (knowledge). Bringing student-led guided tours and had the opportunity to develop their farming through co-ops in SQM Games that were held in Ayllu de science and robotics closer to the a workshop for boys and girls critical thinking skills through games, agricultural programs. Solor in 2019. students through fun and engaging centered around building with learning techniques. singing and dancing, all related to the coil. Some 3,000 individuals world of robotics. are estimated to have visited the exhibit.

310 311 DISCLOSURE 413-1 CALAMA

ENVIRONMENTAL TRAILBLAZERS WE INAUGURATED THE FOURTH IN TOCOPILLA PHASE OF THE DON BOSCO SCHOOL IN CALAMA For four years, SQM has provided support for environmental SQM is a member of the education activities that Antofagasta Industrial Association emphasize teaching students (AIA) which, alongside regional how to care for and appreciate authorities, the school community the environment and water and representatives of the resources, create more parks member companies, inaugurated and green areas, and learn about the second floor of Building No. gardening/farming, etc. One of 6 at the Don Bosco Industrial these programs is the Tocopilla Technical School in Calama. Environmental Trailblazers

Network where student This support was aimed at members serve as environmental improving the education trailblazers at several different of students enrolled in this education establishments. school, which is located near the Company’s operations Implemented by Verdical and and provides its students a funded by SQM, the program combination of theoretical and successfully created a hanging practical education. garden at the Arturo Prat school, thereby expanding green areas at the school. The children also participated in theoretical and practical workshops. Moreover, the Tocopilla Municipal Education Administration Department is also a member of this public private partnership that was set up to foster sustainable development in Tocopilla.

312 313 EXPANDING INCLUSIVENESS PROMOTING INCLUSIVENESS WE ARE ONE THROUGH SPORTS For several years now SQM has Through support provided by SQM volunteers have been been encouraging inclusiveness- SQM and cooperation from supporting a beautiful based initiatives in regard to Antofagasta Region schools, inclusiveness project in which we have made donations to students in their 5th semester conjunction with the Miradas institutions whose work depends of Psychopedagogy at INACAP’s Compartida Foundation that is on this funding. Antofagasta Campus completed devoted to social and workplace the TODOSOMOSUNO project, integration of persons with In this context, more than 120 which consisted of a book that intellectual disabilities. This individuals participated in the tells five stories written by them entails working closely with the first workday organized by the for third grade students, parents inclusive soccer schools in the Teautismo Foundation and SQM, and teachers at public schools, cities of Antofagasta, Tocopilla as part of the “Carreteando por el government-subsidized schools and Santiago and groups of Desierto” program. This consisted and private schools. The project employees from the Company of four days of presentations by was designed to contribute to who play with the young children physical therapists, psychologists, education by fostering empathy on inclusive teams that compete pediatric neurologists, and acceptance at school, at on different occasions. sociologists, speech therapists home, in people and creating and others. The event was awareness, understanding and Additionally, in Antofagasta and held in María Elena in order to acceptance of other’s realities, Tocopilla the volunteers took train healthcare professionals, thereby preventing physical and part in inclusive theater classes as teachers from the Technical High psychological abuse or bullying. students alongside the children School D-133 and the Integra from Miradas Compartidas, as daycare establishments and SQM The project was implemented a way to experience inclusion. staff who all learned more about at the Arturo Pérez Canto D-133 SQM support also included identifying and diagnosing Autism School in María Elena, the San contributions for other inclusive Spectrum Disorder (ASD) in area Ignacio School in Calama, activities carried out by the children and youth. Netland School and Héroes foundation in the cities where de la Concepción E-81 School it works such as paraolympic The “Carreteando por el Desierto” in Antofagasta. The work plan games. Program also plans on replicating addressed five special education this experience in the Municipality needs that were detected in of Tocopilla in the near future the classroom such as Autism given how successful it was and Spectrum Disorder, Hearing how much interest there was for Impairment, Visual Impairment, it in María Elena. Down Syndrome and Attention Deficit Hyperactivity Disorder.

Students in the VILTI SEMANN program.

314 315 16

“Lend a Hand to Your Community” SQM Corporate Volunteer Program

316 317 “LEND A HAND TO YOUR COMMUNITY” SQM CORPORATE VOLUNTEER PROGRAM

For the third year in a row, participating students’ families Moreover, some cultural and we continue to show our who also joined in at times. historic preservation activities are commitment to the corporate carried out in association with volunteer program which is aimed These projects are both social some of our operations. at involving SQM employees and educational in nature in areas near the operations and emphasize support for The works carried out are where they work, thereby technical/professional education diverse and vary according creating ties and commitment in the towns located near our to the requirements of each as well as fostering a greater operations and offices. SQM community, the characteristics sense of social work among our employees volunteering for of each territory, the needs employees. Additionally, this type these educational programs have detected and partnerships of community work leads to new experience in these fields of work. formed with foundations and team dynamics and ties with the corporations, for example: Hogar

318 319 de Cristo, Choshuenco Foundation, Miradas Compartidas, La Semilla Foundation, Diego Portales School in Tocopilla, Óscar Bonilla School in Antofagasta, María Elena Humanities and Technical High School, William Taylor Methodist School in Alto Hospicio and Alcalde Sergio González Gutiérrez School in Pozo Almonte.

Educational Social Total Volunteering Volunteering

2018 2019 2018 2019 2018 2019

Organizations where we have 7 8 18 14 25 22 volunteered

No. of volunteer events (work 43 105 108 99 151 204 days)

Participating volunteers 61 54 114 257 175 311

Volunteer hours 435 5,029 1,522 2,268 1,957 7,297 The corporate Direct beneficiaries 1,250 580 4,811 4,385 6,061 4,965 volunteer program had outstanding results in 2019, EDUCATIONAL VOLUNTEERING INITIATIVES with 311 volunteers VOLUNTEER SUPPORT FOR TECHNICAL PROFESSIONAL EDUCATION IN ANTOFAGASTA AND TARAPACÁ donating a total of 7,297 hours of We continue working with the establishments that we have signed cooperation agreements with in previous years such as the María work. Elena, Tocopilla, Calama, Pozo Almonte, Antofagasta and Alto Hospicio Technical High Schools.

The aim is to optimize training for future professionals through technical assistance, motivational and technical talks, on-site visits, equipment and by bringing outstanding students into the Company for professional internships.

320 321 TECHNICAL PROFESSIONAL SCHOOL PROGRAMS IN NEIGHBORING COMMUNITIES MARÍA ELENA SALAR DE ATACAMA

Motivational Professional/ Professional Donations of School Town Facility Tours SUPPORTING TECHNICAL- TOCONAO, IN FULL COLOR! CLEANING UP THE STREETS OF Talks Technical Talks Internships Materials PROFESSIONAL TOCONAO Alcalde Sergio González Pozo Almonte     Community members, the local Gutiérrez High School SQM funded upgrades at the neighborhood council, SQM Volunteers also carried out William Taylor Methodist High Alto Hospicio     School María Elena Technical High volunteers, 39 students from other noteworthy activities in

Nazaret Catholic School Alto Hospicio   School’s chemical laboratory. Universidad del Desarrollo and the Municipality of San Pedro de The upgrades consisted of Swiss students from the 2019 Diego Portales Polytechnic Atacama such as cleaning the Tocopilla     High School installing modern equipment, Magellan Project joined forces main streets of Toconao, where Oscar Bonilla High School Antofagasta      new AC, a new storage area and under a project that brought they were joined by 35 students

Humanities and Science replenishing chemical supplies both color and life to one of the from the Antofagasta School,   Professional Technical High María Elena   and materials, which directly most iconic and traditional sites community members and military School in María Elena benefited more than 30 students. in town. The entire group worked personnel. Don Bosco Industrial Technical Antofagasta     School This will make it possible for together on beautifying Toconao’s

Don Bosco Industrial Technical students to continue their studies main square and its surroundings. Calama    School and perhaps, eventually, work at They painted benches and seats; San Pedro de Lickan Antai High School    SQM sites in the future. cleaned up the gardens; painted Atacama the neighborhood council Toconao Educational Complex Toconao   This effort was instrumental in building; and more, as part of a Higher Education motivating 50% of the students grand gesture of support since in 2019 (more than in 2018) to Santo Tomas Technical this is one of the most frequently- Iquique     Training Center choose chemistry as a technical visited tourist attractions in all of Inacap Iquique     career path, after having been Toconao. involved in an educational This year we hosted 332 students who did their professional internships with us. This figure is much higher experience that ties academic than last year’s 168 interns who worked at various SQM production centers. knowhow to hands-on field work led by SQM employees. SQM employees with professional training in the technical careers taught at the high schools are in charge of providing this support to students through the corporate volunteer program “Lend a Hand to your Community.”

TOTAL INTERNSHIPS BY GENDER IN 2019 TOTAL INTERNSHIPS BY LOCATION IN 2019

January - December 2019 No. Students Location No. Students

Total No. Internships 332 Nueva Victoria 84

Women 120 María Elena 7

Men 212 Coya Sur 45

Pedro de Valdivia 36

Tocopilla 11

Salar de Atacama 45

Salar del Carmen 50

Antofagasta 30 322 323 Santiago 24 SOCIAL upgrades to the community TOCOPILLA center at the former Ex Vertedero VOLUNTEERING WORKING FOR EARLYCHILDHOOD camp. All told, the work consisted INITIATIVES EDUCATION of installing a perimeter fence, repairing light fixtures, finishing IQUIQUE SQM employees, parents and the garden and revamping the guardians, and teachers at the UNITED FOR CHILDHOOD electrical system initially installed Estrellita del Pacífico Preschool by students studying electricity that serves some 90 children For two years now SQM has been at Universidad Santo Tomas. from Tocopilla’s Pacífico Norte working with the María Ayuda Additionally, students from the neighborhood, worked together Charitable Fund in Iquique as part same university held a dental on a series of projects such as of the SOFOFA-run “United for health clinic with dental hygiene reinforcing the facility’s security Childhood” program under which students and physical trainers fencing, installing automatic member companies sponsor an who tended to the small children emergency lights, replacing institution. Company volunteers at the camp. have worked alongside young sinks, painting the entire facility, girls performing a variety of creating green areas, and covering MARÍA ELENA different activities, such as and padding metal columns to cleaning the dunes on Cerro TEEN-FRIENDLY SPACE prevent accidents, among other Dragon, beach excursions and enhancements. visiting the former saltpeter Another volunteer effort carried operations at Humberstone. out in María Elena consisted of These improvements are helpful setting up a “Teen-Friendly Space”, in moving along the Ministry of The Company also sends an which consisted of revamping the Education’s certification process. annual donation to the foundation building with help from neighbors to make improvements to the and staff at the local clinic in Ninety-seven preschoolers are residence. charge of the program. registered at this establishment that is also part of the support ALTO HOSPICIO Volunteers built a path from network for the Tocopilla the clinic that leads directly to Penitentiary, where inmates SUPPORTING THE ALTO HOSPICIO the container that was set up help by preparing materials and IN MARÍA ELENA, COMMUNITY ASSOCIATION VOLUNTEERS IMPLEMENTED as an office (and donated by building furniture for the school. A “TEEN-FRIENDLY SPACE”, As part of our social volunteering, SQM). Volunteers also set up a WHICH CONSISTED OF Nueva Victoria site employees green area and painted the new REVAMPING THE BUILDING facilities. But before doing this WITH HELP FROM worked with the Un Techo Para NEIGHBORS AND STAFF Chile Foundation, neighbors and work they had to clean up the AT THE LOCAL CLINIC IN students from the Santo Tomás entire site, which was being used CHARGE OF THE PROGRAM. Technical Education Center as a small dump. on building a fence around the facilities and making some

324 325 SAN PEDRO DE ATACAMA with its printed version and the rest of the community with the SUPPORTING SENIORS AT THE digital version. Fledging journalists SIMON BENITEZ CENTER sat in on a journalism workshop designed to underscore the SQM volunteers made a series media tools available to journalists of upgrades possible at the today. Simón Benítez Senior Center in San Pedro, which has some 90 ANTOFAGASTA regular members. After several days of work over a few months, IMPROVING INFRASTRUCTURE FOR SQM volunteers and staff from GIRLS the club officially inaugurated the upgrades. Beginning in June Volunteers in Antofagasta headed 1981, this center has provided a to the Laura Vicuña Residence place for seniors to socialize with (part of the Hogar de Cristo) to peers and take part in a series of aid the 15 at-risk girls ages 13 social and recreational activities. to 18 who live there. Volunteers worked for three days painting

the dorm rooms and setting up playground where children can “OJO DEL DESIERTO” MAGAZINE furnishings purchased for the learn and have a place to be. ALSO AVAILABLE IN PRINT! rooms and common areas. A total of six tree species were Thanks to the volunteer program SANTIAGO planted (jazmin, rue, jacaranda, in San Pedro de Atacama, the quillay and pear) in a 100 m2 digital journal published by GREEN AREAS FOR SAN RAMÓN courtyard and along a straight young journalists and managed SQM volunteers in Santiago came line in front of the education by the Alto Jama Neighborhood out to support youngsters at center that tends to more than Council will expand its coverage the Ángel de la Guarda daycare 150 at-risk children ranging from through a printed version, center in San Ramón run by the daycare age to upper secondary available to readers who do not Cristo Vive Foundation. Co- age. have the opportunity to read organized with the Patio Vivo the on-line version on either a Foundation, this activity involved computer or a smart phone. The planting trees and painting the magazine expects to reach all main courtyard and its immediate neighborhood council members surroundings, turning it into a

326 327 17

Healthier Living, SQM in the Community

328 329 HEALTHIER LIVING, SQM IN THE COMMUNITY

DISCLOSURE 413-1 healthy competition, respect and Winning projects were For a few years now, some of the other life skills. implemented in the communities communities where we operate of María Elena, Tocopilla, Santiago, have expressed an interest in SQM SPORTS GRANTS Toconao, Iquique, Antofagasta and others. They were presented sports. Every year we receive For the second consecutive year by Company workers that play requests from institutions and SQM has backed employees and some sport at a competitive level, associations asking us to donate community members wishing participate in sports organizations to or host activities to promote to participate in the SQM Sports or represent relatives who are and fund sports events in their Scholarship program. In 2019, looking to promote sports and communities. As such we like more than 30 projects were healthy living through diverse to support this type of project submitted (25% more than last initiatives. because we understand how year) and 21 were selected valuable sports are to human from among the program’s four health and to providing young lines of action: instructional, people the tools they need to learn recreational, competitive and Tennis clinics in the communities of María Elena and Tocopilla. about teamwork, consistency, high performance.

330 331 Sports together with communities in Tocopilla.

DISCLOSURE 413-1 platform to teach sportsmanship clinics held by internationally- Coya Sur Tennis Club in María the third division league; and its WIN-WIN (GANAMOS TODOS) IQUIQUE, TOCOPILLA Y and values. SQM contributed to renowned Chilean tennis players Elena. The event provided more preparation and participation in We joined the Ganamos Todos ANTOFAGASTA this activity in the cities of Iquique, Nicolas Massú and Sergio Cortés than a hundred children and the AFUNOR North Zone Soccer Tocopilla and Antofagasta. in Tocopilla and María Elena. They adults the opportunity to practice Championship. The team’s 30 Foundation in organizing a TOTAL ACTION STREET SOCCER shared their experiences with different swings and serves. players were cheered on by 1,800 program to foster sports in MARÍA ELENA Y TOCOPILLA the young participants while also fans attending the championship. Tocopilla. The program consisted SQM also funded “Fútbol Calle,” a teaching them the theoretical TOCOPILLA of sports clinics and four soccer social project that uses sports as WORLD-CLASS TENNIS IN THE and practical aspects of tennis. The club’s training paid off as they camps for 72 students ages 4 to COMMUNITY SUPPORTING THE TOCOPILLA a vehicle to provide opportunities proceeded to win the National 14. SPORTS CLUB DURING THE to men and women from Arica This top-notch sports activity Amateur Soccer Championship Sports are instrumental in NATIONAL CHAMPIONSHIP to Punta Arenas. On the basis of was sponsored and carried out held in Punta Arenas, after 57 Camps taught the children basic improving the lives and education participation and inclusiveness, by SQM, with support from the years of not qualifying for any sports training including the of young people, and as such we SQM supports the Tocopilla this project uses soccer as a Tocopilla Tennis Club and the national championships. fundamentals of soccer. were motivated to fund tennis Sports Club’s participation in

332 333 DISCLOSURE 413-1 inception, the event has been SANTIAGO Y VALPARAÍSO A men’s beach soccer and financed with a grant from SQM’s BEST BALL beach volleyball tournament Sports Scholarship Program awarded to employee Marcelo was also held in Tocopilla. A For the second year we supported Lobos and his team of Runners total of eight soccer teams and soccer tournaments for at-risk Salar de Atacama. eight teams of volleyball doubles children in several Metropolitan competed, many of whom were and 5th Region communities with In Antofagasta the Company active employees of community support from SQM volunteers. organized the SQM Family Fun institutions. Fifty-six (56) people The project consisted of a multi- Run as part of the SQM Healthier took part in this activity directly, sport event for 50 players ages 18 Living Program. The 5k run is a free rooted on by hundreds of to 60. spectators from the town of activity open to the community Tocopilla. at which 100+ participants ran south along the city’s coastline SAN PEDRO DE ATACAMA beginning at Trocadero Beach.

SECOND SQM FAMILY FUN RUN IN ANTOFAGASTA TOCONAO CKAPATUR CLUB A second version of the Family Fun Run was held in the town We support Ckapatur Club, which of Toconao, giving participants a joined forces with the Auto Club’s chance to enjoy beautiful natural tennis team to hold the four-day scenery. The event attracted a “James Armstrong” International large number of runners who Senior Tennis Tournament for dared to complete this high- men and women ages 35 to 85. altitude circuit run at more than This was an opportunity for our 2,400 meters above sea level Antofagasta athletes to compete and featuring Chile’s unique against their local, regional, geography and temperatures that national and international peers, typically border 30°C. and make a positive impact on the city. This version had two race categories: 2K and 6K. Since its

Family Fun Run in Toconao, Antofagasta Region.

334 335 18

Reviving our Past and Culture

336 337 DISCLOSURE 413-1 In 2019 we continued working We have UNVEILING OUR PAST with the “El Cielo de la Pampa se AND CULTURE viste de Colores,” a celebration worked with the of the Chilean national holidays Humberstone in the Pampa where participants We support initiatives that aim enjoyed traditional creole games to add value to the history of the and Santa Laura and dance at the Santiago nitrate industry in the Tarapacá Nitrates Museum Humberstone nitrates office. and Antofagasta regions, given More than 1,000 people showed our long-standing commitment Foundation, up for the event this year. to this line of historic work the Chacabuco as natural heirs to the former We also sponsored activities and saltpeter empire. Nitrates Museum workshops aimed at retrieving and restoring intangible heritage. For Foundation and Examples of these efforts include: the seventh year we held a Floral donations to operations at the the Huanchaca Wreath Workshop in Iquique. Santiago Humberstone and Close to a hundred participants Ruins Foundation Santa Laura nitrates offices, the took part in this workshop that Chacabuco Nitrates Museum for more than focused on bringing back the Foundation and the Huanchaca tradition of making flowers from a decade and Ruins Foundation’s Desert tissue paper and cans in María Museum in Antofagasta, as well maintain a steady Elena, Tocopilla and Quillagua. as additional works finished such The workshops in each town as lighting for the Huanchaca presence on each ended, as is tradition, with ruins and designing and installing of their boards. pilgrimages to the surrounding exhibits at the María Elena cemeteries on November 1. Museum.

Recovering heritage is also We were recognized at a common is communities located celebration for the Nitrates near our operations where teams Museum Foundation in 2019 for of archaeologists continue to all of our contributions over the document and keep thorough years, which earned the museum records on the pre-Hispanic a place on UNESCO’s list of world and historical ruins found near heritage in danger. SQM sits on SQM operations and implement the Corporation’s board and has preventative and mitigation supported a variety of projects measures to protect them, since its founding. especially around the Nueva Victoria operations. Church in the community of Toconao, Antofagasta Region.

338 339 DISCLOSURE 413-1

SQM ART AND CULTURE GRANTS

We set up Art and Culture Grants The following areas are covered • Promoting and developing in response to a need detected under these contributions: music and dance in their va- in our communities and among rious forms. our workers in 2019. These grants • Producing and publishing Creating and promoting han- are open to SQM employees and books and reading material. • dicrafts. cultural organizations interested • Editing and publishing artistic in applying for funding. Slightly more than 25 million and cultural audiovisual ma- pesos were granted to the 13 terial. winning projects.

Winning Projects Where Did the Resources Go? Sites

Latin Music Dancer Support for dancers, for purchasing equipment, holding Santiago specialized dance workshops and participating in congresses and contests.

Los Macanudos Purchasing musical instruments and equipment for music María Elena group.

Guitar lessons for SQM employees Purchasing instruments and paying teacher fees for employee Antofagasta guitar lessons.

Valuing the Pampina Identity Fees for weaving class and materials; advertising pampina María Elena handicrafts.

Recovering the Pampina Identity through Fees for woodworking workshop assistant and equipment; María Elena Handicrafts advertising handcrafts.

“La Aventura Patrimonial de Lucy y Pascual” Professional fees for book illustrator, designer and translator Nueva Children’s Book and printing fee Victoria

Purchasing musical instruments for musical Purchasing musical instruments for Andean music group. San Pedro group Kusillasta de Atacama

Spirits of Pedro de Valdivia Fees for audiovisual equipment and editing video on the Pedro Santiago de Valdivia former nitrate office.

Encouraging Boys and Girls in Primary Fees for designing, printing, and advertising the Kunza language San Pedro School to Read and Learn the Kunza at the research guide. de Atacama Toconao Education Complex

Wooden Handicrafts Purchasing material and equipment for handicraft workshop in María Elena María Elena.

Recording Record of the Banda Ricky Fees for musicians and professionals involved in recording the San Pedro Bastardo LP. de Atacama

50 Years of Faith Purchasing outfits and producing video of the religious dance María Elena group. Toys from the pampa in María Elena, Antofagasta Region. The Talabre Community is draped in color Purchasing outfits. San Pedro in keeping with our faith and tradition de Atacama

340 341 Casa Telar participating in art fair in Santiago.

DISCLOSURE 413-1 SAN PEDRO DE ATACAMA of Toconao, Socaire, Larache A delegation of student- TOCOPILLA and Talabre. These collectives representatives from the LOOM WORKSHOP TAKES PART IN worked to highlight the value of communities had the opportunity ART FAIR RECOVERING LOOMS AND textiles made by the Atacameña to learn more about projects IDENTITY Lickanantay people. and business endeavors from to weave pieces. Their work of art time aimed at weaving ponchos Casa Telar, a project launched by throughout Chile and the world. A group 27 men and women depicted the main historic sites and blankets as a means to provide the ONA Foundation and SQM, Thanks to their efforts, the Casa The experience of exhibiting their from Tocopilla participated in a and buildings in Tocopilla along weavers with an opportunity to aims to commemorate the textile Telar Program participated for the products and hearing technical weaving workshop organized by with well-known local figures. make some extra money selling arts and ancestral know-how of first time in the 12th MasDeco opinions from experts and the the Center for the Handicapped their wares. the Lickanantay culture. Market—a fair showcasing public undoubtedly strengthened and Taller Violeta Parra, where There are plans to repeat the exhibitors and entrepreneurs in their work. workshop again in 2020, but this The program made considerable they learned how to work a loom the fields of social innovation, progress during 2019, mainly with design, cultural revival and groups from the communities culinary arts, among others.

342 343 DISCLOSURE 413-1

SAN PEDRO DE ATACAMA FIRST ART ROOM FOR SAN PEDRO DE ATACAMA + CULTURA PROGRAM

We worked with the Crea+ The first art exhibition room Foundation in San Pedro de in San Pedro de Atacama Atacama to develop a program was created to encourage aimed at protecting local heritage and promote art and artistic and art, essential to indigenous expression among young ancestral and cultural heritage. children. More than 400 first- to fourth-graders from the San The + Cultura program entails Pedro de Atacama School E-26 various initiatives that are carried were the project beneficiaries. out in partnership with community schools and organizations. The The idea came from the objective is to integrate and school’s art teacher María implement a series of activities Elena González and was made aimed at recovering local culture possible thanks to a public while reinforcing the work carried private partnership between out by the schools. SQM, the Crea+ Foundation and the Municipal Education Department under the + Cultura Program.

In 2019 the school’s first art room, decorated in honor of the Lickan Antay culture and known as “Pilpinto,” which means butterfly in the Atacameño tongue of Kunza, was implemented and equipped with a variety of materials, tools and furnishings.

344 345 19

Stakeholder Institutions and Foundations

346 347 DISCLOSURE 102-12/ 102-13

STAKEHOLDER INSTITUTIONS AND FOUNDATIONS

ASSOCIATION/MEMBER: BOARD MEMBER: AGREEMENT: Organizations and Organizations and Organizations and institutions to which the institutions to which the institutions with which Company belongs and is Company belongs and the Company has an active member. This holds a position on the signed collaboration may include payment executive board. agreements to develop of membership fees or projects of common dues. interest.

Associate / Board Associate / Board Relations with Chilean Organizations and Institutions Agreement Relations with International Organizations and Institutions Agreement Member Member Member Member

Association of Concentrated Solar Power Companies  Spanish Commercial Fertilizers Association (ACEFER for its spanish acronyms) 

Antofagasta Industrial Association (AIA)    Spanish Packaging Recovery Association (AEVAE for its spanish acronyms) 

Iquique Industrial Association (AII for its spanish acronyms)    International Fertilizer Industry Association (IFA) 

Chilean Industrial Chemical Association (Asiquim for its spanish acronyms)  World Iodine Association (WIA)  

American-Chilean Chamber of Commerce (AMCHAM)  National Fertilizer Sales and Production Association A.C. (ANACOFER) 

Argentine-Chilean Chamber of Commerce  European Solar Thermal Electricity Association (ESTELA)  

Belgian-Luxembourg Chamber of Commerce  Far West Agribusiness Association (FWAA) 

Chinese-Chilean Chamber of Commerce, Industry and Tourism  Georgia Citrus Association 

Santiago Chamber of Commerce  Independent Lubricant Manufacturers Association (ILMA) 

Regional Council on Mining Safety (Coresemin for its spanish acronyms) -   The Trade Fertilizer Institute (TFI) Antofagasta

Regional Council on Mining Safety (Coresemin for its spanish acronyms) - NOTE: Data in this table updated as of December 2019  Tarapacá Acronyms are provided in parenthesis in the organization’s original language.

Generación Empresarial Foundation (FGE for its spanish acronyms) 

Chilean Institute for Rational Business Management (ICARE for its spanish  acronyms)

Chilean Engineering Institute 

Chilean Federation of Industry (Sofofa for its spanish acronyms) 

National Mining Society (Sonami for its spanish acronyms) 

SQM has been a member of Global Compact since May 2020.

348 349 We engage through donations or as a result of projects of common interest with the following associations, Associate / Board Relations with Chilean Organizations and Institutions Partner Agreement institutions and foundations: Member Member Chilean Institute for Rational Business Management (ICARE for  its spanish acronyms) ASSOCIATE / MEMBER: PARTNER: BOARD MEMBER: AGREEMENT : Chilean Engineering Institute  Organizations and Organizations and Organizations and Organizations and National Institute for Agricultural Development (Indap for its institutions to which the institutions for which institutions to which the institutions with which  spanish acronyms) Company belongs and is the Company provides Company belongs and the Company has National Institute for Agricultural Research (Inia for its spanish  an active member. This support for initiatives of holds a position on the signed collaboration acronyms) may include payment common interest. executive board. agreements to develop Trace International Inc (TRACE)   of membership fees or projects of common Universidad Austral   dues. interest. Universidad de Chile  

Universidad de Concepción   Associate / Board Relations with Chilean Organizations and Institutions Partner Agreement Universidad de la Frontera (Ufro)   Member Member Universidad del Desarrollo  Center for Public Research  World Economic Forum  Best Ball Sports Club  

Maranata Cristo Viene Sports Club  Associate / Board Relations with Tarapacá Region Organizations and Institutions Partner Agreement Crea Más Foundation   Member Member

99 Uno Foundation  Tierra de Jehová Indigenous Association  

Creando Valor y Apoyo Foundation   Juventud del Desierto Rural Aymara Indigenous Association  

Choshuenco Educational Foundation   Pampa del Tamarugal Rural Indigenous Association   Father Alberto Hurtado Foreign Resident Brotherhood, Cultural Ganamos Todos Foundation    and Social Center Generación Empresarial Foundation (FGE for its spanish  acronyms) Pampa del Tamargual Goat Breeder and Dairy Cooperative 

Hogar de Cristo Foundation   Hijos del Salitre Foundation 

Libertad y Desarrollo Foundation  Nitrates Museum Foundation     National Forestry Corporation (CONAF for its spanish acronyms) Mar de Chile Foundation   Tarapacá Miradas Compartidas Foundation   Iquique Fire Department   Foundation for Farming Innovation  Oasis en el Desierto School in Pintados  Pro Ayuda al Niño Lisiado Foundation (Teletón)   Crecer con Identidad Foundation  Recrea Foundation  Alcalde Sergio González Gutiérrez School in Pozo Almonte   Recyclapolis Foundation  

Chilean Chamber of Construction Social Foundation  William Taylor Methodist School in Alto Hospicio  

Un Techo Para Chile Foundation   María Ayuda Charity Foundation  

Inacap   Municipality of Pozo Almonte  

Universidad Santa Tomás   Acronyms are provided in parenthesis in the organization’s original language.

350 351 Associate / Board Associate / Board Relations with Antofagasta Region Organizations and Institutions Partner Agreement Relations with Antofagasta Region Organizations and Institutions Partner Agreement Member Member Member Member

Los Terralitos Cultural Folk Group  Brotes de Mi Tierra Folk Group - María Elena  

Los Chañares de Quillagua Youth Group  Regional Council on Mining Safety (Coresemin for its spanish   acronyms) - Antofagasta Aguas Blancas Indigenous Association  Quillagua Hydroponic Rural Farmers’ Cooperative  

Celeste Indigenous Association  Altura Lickanantay Winemakers’ Cooperative 

VILTI Toconao Fire and Rescue Brigade  El Loa Provincial Development Foundation (PROLOA)  

Bicentennial Cultural Center  Antofagasta Municipal Foundation for Social Development  

Brisas de Chile Social Dance Club and Cultural Center   Chacabuco Nitrates Museum Foundation    

Pedro de Valdivia Women's Center   Pedro de Valdivia Nitrates Museum Foundation    

Tocopilla Center for Art and Literature  National Forestry Corporation (CONAF for its spanish acronyms)  Antofagasta Hijos de Pedro de Valdivia Center  Antofagasta Fire Department   Parent Association from School D No. 7 Carlos Condell de la  Haza San Pedro de Atacama Fire Department  

Jurique Rehabilitation Center, San Pedro de Atacama  Tocopilla Fire Department  

General Parent Association from Socaire School  San Pedro de Atacama Municipal Education Office (DAEM for its  spanish acronyms) General Parent Association from Toconao Educational Complex   Arturo Prat Chacon School in Tocopilla  General Parent Association from Oscar Bonilla School A-26  Antofagasta Ignacio Carrera Pinto Primary School in Quillagua 

Art and Literature Circle  Bernardo O´Higgins School in Tocopilla 

Simón Benítez Senior Center in San Pedro de Atacama  Carlos Condell School in Tocopilla 

Tocopilla Sports Club   Arturo Perez Canto School D-133 in María Elena 

Ckapatur Sports Club  Toconao School E-21 in the Toconao Education Complex 

La Tortuga Sports Club   School E-26 in San Pedro de Atacama 

Villa Prat Sports Club  School G-15 in Solor 

Sagrada Familia School - Tocopilla   School G-22 in Camar 

Don Bosco Industrial Technical School in Calama   School G-27 in Peine 

Don Bosco Industrial Technical School in Antofagasta   School G-29 in Talabre 

María Elena District Civic Prevention and Emergency Committee  School G-30 in Socaire 

San Pedro de Atacama District Civic Prevention and Emergency  Gabriela Mistral School in Tocopilla  Committee Pablo Neruda School in Tocopilla  Tocopilla District Civic Prevention and Emergency Committee  Río Grande School  Rio Grande Atacameña Community   La Semilla Inspirada en la Obra de Don Bosco Foundation   Socaire Atacameña Community   Tocopilla Municipal Cultural Foundation  Talabre Atacameña Community   Mining Region Educational Foundation   Toconao Atacameña Community   Huanchaca Ruins Foundation     Acronyms are provided in parenthesis in the organization’s original language.

352 353 Associate / Board Associate / Board Relations with Antofagasta Region Organizations and Institutions Partner Agreement Relations with International Organizations and Institutions Partner Agreement Member Member Member Member

Teautismo Foundation   Potassium Nitrate Association (PNA) 

Brotes de mi Tierra Folk Group   California Certified Organic Farming (CCOF) 

Rio Grande Preschool  China Inorganic Salts Industry Association - Potash Branch 

Estrellita del Pacífico Preschool  Oregon Association of Nurseries (OAN) 

Hogar de Cristo Preschool  Dii GmbH 

Javiera Carrera Preschool 

Lickanantay Preschool in San Pedro de Atacama 

Lickanantay Preschool in Toconao 

Miscanti Preschool in Socaire 

Paunna Lickan San Pedro de Atacama Preschool 

Sol del Norte Preschool in Camar 

Chañarcito Preschool in San Pedro de Atacama 

Alto Jama Neighborhood Council in San Pedro de Atacama 

Altos del Mar Neighborhood Council 

Quillagua No. 1 Neighborhood Council 

Toconao Neighborhood Council 

Villa Prat Neighborhood Council 

Lickan C-30 Agricultural High School in San Pedro de Atacama  

Domingo Latrille School in Tocopilla 

Oscar Bonilla School in Antofagasta  

Diego Portales Polytechnic School in Tocopilla  

Humanities and Science Professional Technical High School in   María Elena

Municipality of María Elena  

Municipality of San Pedro de Atacama 

Municipality of Tocopilla  

San Pedro de Atacama Municipal Education Office (OMIL for its  spanish acronyms)

Papin Pahir in Talabre 

Pontificia Universidad Católica de Chile (Care Chile UC)  

Tocopilla Fishermen's Union  

Osada del Carmen Religious Society 

Universidad Católica del Norte  

Universidad de Antofagasta  

Acronyms are provided in parenthesis in the organization’s original language.

354 355 20

Assurance Letter

356 357 Independent Review Report Sociedad Química y Minera de Chile S.A’s 2019 Sustainability Report

To the President and Directors of Sociedad Química y Minera de Chile S.A (SQM)

We have conducted a limited review of the content and data Interviews with SQM’s key personnel, in order to assess disclosed in the 2019 Sustainability Report of SQM, regarding the “indicators subject to review” in “SQM’s 2019 the contents related to the 102-1 to 12-12 (organizational Sustainability Report” preparation process, content profile), 102-14 (strategy), 102-16 (ethics and integrity), definition and information systems used. 102-18 (governance), 102-40 to 102-44 (stakeholder engagement), 102-45 to 102-56 (reporting practices) Verification of data included in the “indicators subject to essential GRI indicators and the 303-5, 304-2, 305-4, 305-7, review” in “SQM’s 2019 Sustainability Report” through supporting documentation provided by SQM. 306-3, 401-2, 403-9 and 413-1 material contents (henceforth “indicators subject to review”) reported in the 2019 Analysis of the collection process and the quality control Sustainability Report for the year ended in of the quantitative information reported in the “indicators December 31, 2019. subject to review” in “SQM’s 2019 sustainability report”.

SQM’s management is responsible for the preparation of the Verification of data reliability using analytical procedures, Sustainability Report. Additionally, SQM’s management is testing on a sample basis and the review of recalculations. responsible for the contents, affirmations, scope definition and the management and control of information systems Visits to the operations located in Salar de Atacama, Salar which provided the information reported. del Carmen, María Elena, Coya Sur and the regional office in Antofagasta Region. Our review was conducted in accordance with attestation engagement standards established by the Colegio de Review of the wording of “SQM’s 2019 Sustainability Contadores de Chile A.G. A review is substantially less in Report”.

scope than an examination, the objective of which is the Based on our review, nothing came to our attention that expression of an opinion over “SQM’s 2019 Sustainability caused us to believe that: Report”. Accordingly, we do not express such an opinion. Contents and data disclosed in the “indicators subject to Contents and data disclosed in the “indicators subject to review” in “SQM’s 2019 Sustainability Report” are not review” in “SQM’s 2019 Sustainability Report” were also duly supported with sufficient evidence. reviewed considering the criteria established in the Global Reporting Initiative (GRI) Sustainability Reporting Standard as The “indicators subject to review” in “SQM’s 2019 well as SQM’s internal guidelines, which are summarized as Sustainability Report” have not been prepared in follows: accordance with the Principles on Content and Quality as established by the GRI Standard and SQM’s internal guidelines. Determine that the contents and data disclosed in the “indicators subject to review” in “SQM’s 2019 Sustainability “SQM’s 2019 Sustainability Report” does not comply Report” are duly supported with sufficient evidence. with the comprehensive option stated by SQM in accordance with the GRI Standard. Determine that SQM has prepared its 2019 Sustainability Report in accordance with the Principles on Content and KPMG SpA Quality as established by the GRI Standard and its internal guidelines.

Confirm the comprehensive option stated by SQM in its 2019 Sustainability Report, in accordance with the GRI Standard.

Our procedures considered conducting inquiries with SQM’s management and the personnel from the operations Tamara Agnic M. responsible for the preparation of the report, as well as Partner performing other analytical procedures and tests, that included: Santiago June 5, 2020

Taking measurements at solar evaporation ponds, Salar de Atacama operations, Antofagasta Region. © KPMG Auditores Consultores SpA, a Chilean joint-stock company and a member firm of the KPMG network of Santiago independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Isidora Goyenechea 3520 All rights reserved. Piso 2, Las Condes +56 2 2997 1000 [email protected]

358 359 21

GRI Content Index

360 361 Ratio Verified Ratio Verified GRI Standard Contents Name of Content Section Page GRI Standard Contents Name of Content Section Page by KPMG by KPMG

General Disclosures General Disclosures

SQM, from Chile to the Identifying and selecting 102-1 Name of the organization 26  102-42 Materiality 16, 18  World stakeholders

26, 37,40, Approach to stakeholder 16, 18, Activities, brands, products SQM, from Chile to the 102-43 Materiality  102-2 43, 47,  engagement 21, 98 and/or services World 49, 58 Key topics and concerns 102-44 Materiality 16, 18  SQM, from Chile to the raised 102-3 Location of headquarters 28, 29  World Entities included in the SQM, from Chile to the 102-45 consolidated financial Materiality 14  102-4 Location of operations 26, 28  World statements

102-5 Ownership and legal form Value Generated 80, 83  Defining report content 102-46 Materiality 21  and topic boundaries SQM, from Chile to the 102-6 Markets served 26, 28, 51  World 102-47 List of material topics Materiality 21, 22, 23 

SQM, from Chile to the Restatements of GRI 102: 2016 102-48 Materiality 14  World 26 – 28, information 102-7 Scale of the organization  General Content 74, 76 Value Generated 102-49 Changes in reporting Materiality 14 

Information on employees 102-50 Reporting period Materiality 14  102-8 Our People 135, 140  and other workers 102-51 Date of most recent report Materiality 14  203, 206, 102-9 Supply chain Value Chain  104 102-52 Reporting cycle Materiality 14 

About This Report Contact point for questions GRI 102: 2016 Significant changes to the 102-53 Materiality 15  regarding the report General Content 102-10 organization and its supply 14, 30  SQM, from Chile to the chain World Claims of reporting in 102-54 accordance with the GRI Materiality 14  SQM, from Chile to the Standards Precautionary principle or World 52, 125, 102-11  approach 126 102-55 GRI Content Index Materiality 362  Our Values 102-56 External assurance About this Report 14  Table of Stakeholder 52, 54, 102-12 External initiatives Institutions and  61, 348 Foundations

Table of Stakeholder Membership in 102-13 Institutions and 348  associations Foundations

Statement from senior 102-14 Our Company in 2019 8  decision-makers

Values, principles, 109 – 102-16 standards, and norms of Our Values 112, 114,  behavior 125

102-18 Governance structure Corporate Governance 87, 88 

102-40 List of stakeholder groups Materiality 16, 18 

Collective bargaining Participation and 102-41 154  agreements Inclusiveness

362 363 Ratio Verified Ratio Verified GRI Standard Contents Name of Content Section Page GRI Standard Contents Name of Content Section Page by KPMG by KPMG

Material Issue: Lithium, product quality and specifications, volumes, prices, capacity growth and expansion plans, supply Material Issue: Environment Water use and management. expectations, trusting its own product delivery capacity, lithium as a main product for technological and international development, eco-friendly final products (lithium, solar salts, iodine, fertilizers). Explanation of the material Committed to the 103-1 237  SQM, from Chile to the topic and its boundary Environment World Explanation of the material GRI 103: The management 103-1 26  Committed to the topic and its boundary Management 103-2 approach and its 237  Committed to the Environment approach 2016 components Environment Evaluation of the Committed to the SQM, from Chile to the 103-3 237  management approach Environment GRI 103: The management World  Management 103-2 approach and its 26 Interacting with water as a Committed to the Committed to the 303-1 237 approach 2016 components shared resource Environment Environment Managing impact of water Committed to the SQM, from Chile to the 303-2 238 discharge Environment World Evaluation of the 103-3 26  GRI 303: Water and Committed to the management approach 303-3 Water Extraction 238 Committed to the Effluents 2018 Environment Environment Committed to the 303-4 Water Discharge 238 SQM, from Chile to the Environment GRI 102: 2016 World 26,28, 74, 102-7 Scale of the organization  General Content 76 Committed to the 303-5 Water Consumption 238  Our People Environment

364 365 Ratio Verified Ratio Verified GRI Standard Contents Name of Content Section Page GRI Standard Contents Name of Content Section Page by KPMG by KPMG

Material Issue: Preserving areas surrounding operations, taking precautions in terms of environmental issues, issues Material Issue: PM Air Emissions, Low or Potentially Low Carbon Footprint related to the Company, mining companies that pollute and contaminate, facing future environmental restrictions imposed on current production processes (water use, water evaporation ponds, caliche mining, brine extraction, etc.) Explanation of the material Committed to the 103-1 242  Explanation of the material Committed to the 213, 214, topic and its boundary Environment 103-1  topic and its boundary Environment 216, 218 GRI 103: The management Committed to the  GRI 103: The management Management 103-2 approach and its 242 Committed to the 213, 214, Environment Management 103-2 approach and its  approach 2016 components Environment 216, 218 Approach 2016 components Evaluation of the Committed to the 103-3 242  Evaluation of the Committed to the 213, 214, management approach Environment 103-3  management approach Environment 216, 218 Direct (Scope 1) GHG Committed to the 305-1 245 Significant impacts of emissions Environment activities, products and Committed to the  Energy indirect (Scope 2) Committed to the 304-2 218, 226 305-2 246 services on biodiversity Environment GHG emissions Environment 2016 Greenhouse gas emissions Committed to the Habitats protected or Committed to the 305-4 244  GRI 304: Biodiversity 304-3 234, 235 intensity Environment restored 2016 Environment 2016 Reduction of GHG Committed to the 305-5 246 IUCN Red List species GRI 305: Emissions emissions Environment national conservation 2016 Committed to the 304-4 list species with habitats 219, 227 Environment The company does not use in areas affected by Emissions of ozone- substances that generate 305-6 - operations 2016 depleting substances (ODS) emissions that deplete the ozone layer. At the closing of this GRI 307: Non-compliance with report, the company Nitrogen oxides (NOX), Committed to the Environmental 307-1 environmental laws and has no breaches of 216 sulfur oxides (SOX), and 305-7 Environment (considers 243  Compliance 2016 regulations environmental legislation other significant air only air emissions PM) and regulations. emissions

366 367 Ratio Verified Ratio Verified GRI Standard Contents Name of Content Section Page GRI Standard Contents Name of Content Section Page by KPMG by KPMG

Material Issue: Waste management Material Issue: Labor Relations

Explanation of the material Committed to the Explanation of the material 103-1 241  103-1 Our People 134  topic and its boundary Environment topic and its boundary

GRI 103: The management GRI 103: The management Committed to the Management 103-2 approach and its 241  Management 103-2 approach and its Our People 134  Environment approach 2016 components approach 2016 components

Evaluation of the Committed to the Evaluation of the 103-3 241  103-3 Our People 134  management approach Environment management approach

Water discharge by quality Committed to the New employee hires and 306-1 238 401-1 Our People 142 and destination Environment employee turnover

Waste by type and disposal Committed to the Benefits provided to full- 306-2 241  GRI 401: Employment method Environment time employees that are 2016 401-2 Our People 157, 158  not provided to temporary Committed to the GRI 306: Effluents 306-3 Significant spills 238 or part-time employees Environment and Waste 401-3 Parental leave Our People 152 Transport of hazardous Committed to the 306-4 241 waste Environment GRI 402: Labor/ Minimum notice periods Company Relations 402-1 regarding operational Our People 154 Water bodies affected by Committed to the 2016 changes 306-5 discharges of water and 238 Environment runoff

368 369 Ratio Verified Ratio Verified GRI Standard Contents Name of Content Section Page GRI Standard Contents Name of Content Section Page by KPMG by KPMG

Material Issue: Safety and Accident Rates Material Issue: Develop a mutually-beneficial relationship with nearby communities (social development), business ventures and employment Explanation of the material 103-1 Safety, One of Our Values 179  Explanation of the material SQM, Present in the topic and its boundary 103-1 262 – 264  topic and its boundary Community - Our People GRI 103: The management GRI 103: The management Management 103-2 approach and its Safety, One of Our Values 179  SQM, Present in the Management 103-2 approach and its 262 - 264  approach 2016 components Community - Our People approach 2016 components Evaluation of the 103-3 Safety, One of Our Values 179  Evaluation of the SQM, Present in the management approach 103-3 262 - 264  management approach Community - Our People Occupational Health and 403-1 Safety, One of Our Values 179 265, 259, Safety System 262, 264, Hazards Identification, Risk 265, 271, 403-2 Assessments and Incident Safety, One of Our Values 180, 182 272, 287, Investigations Operations with local 288, 290, community engagement, SQM, Present in the 293, 294, 413-1  Occupational health impact assessments, and Community - Our People 298, 302, 403-3 Safety, One of Our Values 184 services GRI 413: Local development programs 306, 309, communities 310, 312, Employee participation, 332, 334, inquires and 338, 341, 403-4 communication regarding Safety, One of Our Values 185 342 occupational health and GRI 403: safety Operations with significant Occupational health actual and potential SQM, Present in the 413-2 262, 259  and safety 2018 Employee Training in negative impacts on local Community 403-5 Occupational Health and Safety, One of Our Values 186 communities Safety

Fostering employees’ 403-6 Safety, One of Our Values 184 health

Coverage of Occupational 403-8 Safety, One of Our Values 186, 188 Health and Safety System

Injuries from workplace 403-9 Safety, One of Our Values 190, 192  accidents

Occupational Illness and 403-10 Safety, One of Our Values 193 Disease

370 371 Ratio Verified Ratio Verified GRI Standard Contents Name of Content Section Page GRI Standard Contents Name of Content Section Page by KPMG by KPMG

Other Reported Disclosures Other Reported Disclosures

Main impacts, risks and Evaluation of economic, 102-15 Our Company in 2019 8 opportunities 102-31 environmental and social Corporate Governance 90, 93 topics Mechanisms for advice and 112 – 102-17 Our Values concerns about ethics 114, 121 Highest governance body’s 102-32 role in sustainability Corporate Governance 87, 88, 90 102-19 Delegation of responsibility Corporate Governance 87 reporting GRI 102: 2016 Executive-level positions General Content Corporate Governance Communication of critical 87, 88, with responsibility for 87, 88, 102-33 Corporate Governance 102-20 concerns 95, 98 economic, environmental 90, 112 Our Values and social topics 102-35 Remuneration policies Corporate Governance 87, 93, 94 Processes for consultation Process for determining Participation and with stakeholders on 102-36 87, 157 102-21 Materiality 16 remuneration Inclusiveness economic, environmental and social topics Direct economic value 201-1 Value Generated 79 GRI 201: 2016 generated and distributed Composition of the highest 87, 88, Economic 102-22 governance body and its Corporate Governance 94, 95, Financial assistance Performance 201-4 Value Generated 79 committees 96, 102 received from government

Chair of the highest Proportion of senior 102-23 Corporate Governance 87, 88 GRI 202: Market governance body 202-2 management hired from Our People 139 GRI 102: 2016 Presence 2016 local community General Content Nominating and selecting 102-24 the highest governance Corporate Governance 87, 90 GRI: 204 Proportion of spending on 204- 1 Value Chain 206 body Procurement local suppliers

102-25 Conflicts of interest Our Values 112 Operations assessed for 205-1 Our Values 212 risks related to corruption Highest governance body's 102-26 role in setting purpose, Corporate Governance 90 Communication and training about anti- 112, 114, values and strategy GRI 205: Anti- 205-2 Our Values corruption policies and 121, 122 Corruption 2016 Collective knowledge of the procedures 102-27 Corporate Governance 87, 90 highest governance body Confirmed incidents of Performance evaluation 205-3 corruption and actions Our Values 119 102-28 process for highest Corporate Governance 90, 93 taken governance body Energy consumption within Committed to the 302-1 252 Identification and the organization Environment management of economic, 102-29 Corporate Governance 90, 94 Committed to the environmental and social GRI 302:Energy 2016 302-3 Energy intensity 251 impact Environment

Effectiveness of risk Reduction of energy Committed to the 102-30 Corporate Governance 88, 93 302-4 252 management processes consumption Environment

372 373 Ratio Verified GRI Standard Contents Name of Content Section Page by KPMG

Other Reported Disclosures

Average hours of training Participation and 165, 166, 404-1 per year per employee Inclusiveness 168, 169

Programs for upgrading employee skills and Participation and 161, 162, 404-2 GRI 404: Training and transition assistance Inclusiveness 165 education 2016 programs.

Percentage of employees receiving regular Participation and 404-3 173 performance and career Inclusiveness development reviews

Our People GRI 405: Diversity Diversity of governance and equal 405-1 142 bodies and employees Participation and opportunity 2016 Inclusiveness

Incidents of discrimination GRI 406: Non- 406-1 and corrective actions Our Values 119 Discrimination 2016 taken

Operations and suppliers SQM, from Chile to the GRI 407: Freedom in which the right to World of association and 407-1 freedom of association and 154 collective bargaining collective bargaining may Participation and 2016 be at risk Inclusiveness

Contributions to GRI 415: Public Policy 415-1 political parties and/or Our Values 114 2016 representatives

Assessment of health and SQM, from Chile to the 416-1 safety impact of product or 61, 62, 63 World service categories GRI 416: Customer Incidents of non- Health and Safety compliance concerning the 2016 health and safety impacts SQM, from Chile to the 416-2 193 of products and services World

Requirements for product GRI 417: Marketing SQM, from Chile to the 417-1 and service information 56 and Labeling 2016 World and labeling

374 375 DESIGN:

Baobab Diseño

376