Sustainability Report 2025
We are committed to respecting the human rights of our employees, contractors and suppliers, communities, and Indigenous peoples considering the United Nations Guiding Principles on Business and Human Rights (UNGP) and the Ten Principles of the Global Compact. Our Code of Conduct and Third-Party Code of Conduct require employees and value chain partners to respect human rights. We do not tolerate discrimination, harassment, unsafe working conditions, or any form of modern slavery, including forced labor and child labor.
Our approach to managing impacts, risks, and opportunities draws on our Human Rights Due Diligence framework and comprises key implementation components: governance, policies and guidelines, training, compliance, monitoring and reporting, and engagement with other organizations.
We actively participate in the Mexican Mining Chamber’s Commission for Community Development and Human Rights to share and strengthen best practices. Within this commission, we contribute to the Working Group on Companies and Human Rights. We also engage with programs, strategies, and training platforms recommended by the Organisation for Economic Co-operation and Development (OECD).
Understanding the broader environment and its security and social dynamics is critical for preventing risks and responsibly managing human rights impacts.
We use two complementary approaches to risk assessment: strategic-level external assessments within our Enterprise Risk Management (ERM) framework, and asset-level assessments that account for the specific context of each facility. This alignment helps us monitor and mitigate risks across strategic, tactical, and operational levels.
We offer multiple channels for our stakeholders to raise concerns, including a dedicated grievance mechanism for communities and our Línea Correcta whistleblower channel, which covers both our company and partners’ conduct throughout the value chain.
In 2025, no complaints were recorded in our reporting mechanisms about human rights violations against communities by the Federal Protection Services, the Chihuahua State Police, or private security companies.
Our people’s talent and commitment are fundamental to fulfilling our purpose of generating opportunities and well-being by sustainably supplying essential resources. We are committed to offering a workplace environment where people feel physically and psychologically safe, included, and motivated to develop to their full potential.
Select each item to view more information.
We are committed to ensuring living wages for our employees.
By labor segment (%)
| Segment | Ratio | Men | Women | % Women |
|---|---|---|---|---|
| Senior professional | 0.96 | 998 | 276 | 21.66 |
| Professional | 0.98 | 1,680 | 466 | 21.71 |
| Nonprofessional | 1.06 | 500 | 164 | 24.70 |
| TOTAL | 0.99 | 3,178 | 906 | 22.18 |
The ratios are calculated using the base salary of non-unionized employees in Mexico.
At Peñoles, nothing is more important than the health and safety of our people. We are committed to fostering a Love for Life culture—demonstrated daily through the safe behaviors of our employees and contractors. Above any operational or financial outcome, our top priority is to prevent high-potential events that could lead to serious injuries, fatalities, or occupational diseases. To address this imperative, we established a comprehensive roadmap to strengthen and deepen our High Potential Strategy.
One of our most significant milestones was the Second Edition of Safety Week 2025, supported by the Chairman of the Board of Directors of Industrias Peñoles. This initiative aims to raise awareness and align the efforts of our organization. This year focused on a call to action to implement the Safety, Occupational Health, and Environmental Management Standard for Contractor Companies.
Select each level to view its objective.
Select each item to view more information.
We conducted a thorough review of our approach to contractor management, deepening and strengthening the safety, occupational health, and environmental considerations that are essential to effective implementation of our High Potential Strategy. Our contractor standard specifies the requirements for contractors, notably their accreditation, adoption of critical controls, and safety, occupational health, and environmental plans. Moreover, this standard sets clear accountability and controls for our own corporate functions and operations to manage contractors’ life cycle.
Contractor management
life cycle
Select each number to view the details.
At the core of our High Potential Strategy is the belief that visible leadership—through direct field engagement—is essential to building and sustaining a safety culture between our leadership teams, employees, and contractors in key activities such as risk identification and critical control assessment. Our love for life culture defines clear expectations for visible leadership, as expressed in our leadership standard. We strengthened visible leadership through senior management’s participation in field tours and audiovisual capsules under the slogan “Example leads to action,” demonstrating management’s commitment to an authentic and coherent prevention culture through actions.
While safety incidents often have immediate impacts, occupational health impacts are typically cumulative and develop over time through repeated exposure. Our business units implement comprehensive plans that address both short- and long-term exposure, including hygiene and occupational health. Our High Potential Strategy’s efforts focus on critical health risks and controls. Our business units’ health teams oversee the recovery of personnel who suffer accidents and the management of cases with accident after-effects.
We put in place emergency response plans and teams across our operations and projects. These plans are supported by local teams through capacity building, training, and drills. Our emergency response teams include members trained as emergency medical responders. We also collaborate with municipal, state, and federal authorities to ensure coordinated emergency responses.
Select each item to view more information.
Our occupational health programs anticipate, detect, address, and monitor the symptoms that lead to occupational diseases with a role-based focus. We implement a medical surveillance program to determine fitness for duty and to identify early symptoms that could be aggravated by exposure to hazardous agents, ergonomic factors, and other conditions present in the workplace. Similarly, these check-ups allow us to identify risk factors and health conditions that could make someone more vulnerable in the workplace. This medical surveillance program informs case management, training, and industrial hygiene controls. We engage our people on preventive health and hygiene through their training and communication campaigns.
Our occupational hygiene efforts aim to reduce exposure to hazardous agents in the workplace, with activities that include the identification, evaluation, control, and monitoring of sources of gases, dust, and noise. Our most recent action plan for our business units to address dust and noise focuses on critical areas and evaluating sources directly in the field. The measures to address these critical risks include occupational hygiene standards, medical surveillance, and case management guidelines. Critical controls include a combination of fitness-for-duty assessments, engineering controls (i.e., dust suppression), personal protective equipment (i.e., respirator masks), and administrative measures (i.e., prescribed work cycles) to limit exposure.
We also promote total well-being, recognizing that health is not just the absence of disease, but includes physical, mental, and social dimensions. Our health and safety efforts work in synergy with our program to address psychosocial risks in the workplace, well-being, healthy lifestyle campaigns, and community health initiatives.
We aim to build long-term, mutually beneficial relationships with Indigenous peoples based on trust. Gaining a deep understanding of their culture, organizational structures, decision-making processes, practices, and customs is essential to conducting our activities with respect.
We are convinced that effective Free, Prior, and Informed Consent (FPIC) processes, grounded in sound principles, contribute to the development of better projects—ones that not only address potential impacts but also create opportunities for sustainable development for Indigenous peoples.
Select each item to view more information.
We conduct studies that characterize Indigenous communities, including their social organization, sociodemographic statistics, cultural heritage, practices, and customs. These studies help us identify potential impacts and define mitigation measures with an emphasis on respecting Indigenous rights and incorporating their interests, knowledge, and aspirations. Our operations and projects implement community engagement plans that involve ongoing interactions through meetings, forums, programs, and other activities with Indigenous communities.
We develop social management plans to address both positive and negative impacts identified through social impact assessments and community engagement feedback. In addition, we seek strategic partnerships with government agencies, cooperation entities, and civil society organizations to address relevant issues collaboratively. We offer a field-based grievance mechanism and Línea Correcta ethics hotline, which allows for confidential reporting on issues related to our company’s and its value chain partners’ conduct.
We implement a due diligence process to proactively identify the presence of Indigenous peoples through official sources. This enables us to adopt appropriate community engagement measures and integrate FPIC considerations into project planning.
Our social management plans include initiatives and programs focused on health, education, and capacity-building in collaboration with Indigenous communities.
We recognize the increasingly high expectations surrounding social performance, as well as the complex social dynamics of the regions where we operate and develop our projects. In response, we are firmly committed to continuously improving our social performance practices.
Our aspiration to Live the Community means actively engaging with our neighboring communities’ priorities and concerns—aligning with their development plans to build a shared future. We forge strategic partnerships with local authorities, civil society organizations, and cooperating entities to work collectively for the common good.
The International Council on Mining and Metals (ICMM) recommends assessing social performance maturity across four dimensions: leadership and social awareness, management systems, people, and metrics. We adapted this framework to guide our capacity-building efforts.
Select each item to view more information.
We hold responsible sourcing certifications from the London Bullion Market Association (LBMA) and the London Metal Exchange (LME)—both based on the OECD Due Diligence Guidance for Responsible Business Conduct—which enable us to demonstrate to clients and investors that our precious and base metals value chain is conflict free.
Select each initiative to view more information.
We view education as a cornerstone of social cohesion and development. Our efforts extend to promoting education, culture, the arts, cultural heritage, science, technology, and educational infrastructure. We support access to quality technical, vocational, and higher education—including university-level programs—to help individuals secure decent employment or start their own businesses.
We are committed to promoting healthy lifestyles and well-being in our communities. We support local health systems and encourage good hygiene, nutritional habits, and access to safe vaccines. Our approach emphasizes preventive health care, sports and physical activity, family well-being, and preparedness for emergency response.
Our goal is to develop capacities and promote entrepreneurship to diversify local economies and build resilient communities.
We are committed to reducing our water footprint and collaborating with communities and local authorities to enhance access to safe water. Simultaneously, we promote environmental awareness and responsible water use.
Local procurement is defined as the total payments made to suppliers with a tax domicile in any of the 10 Mexican states where Industrias Peñoles has significant operations. Local procurement has two components:
| Local procurement | (%) |
|---|---|
| Local procurement | 57.45 |
| Direct | 29.47 |
| Indirect | 27.98 |
The calculation of payments to suppliers represents the invoices paid from January 1 to December 31, 2025.
Mexican States with significant operations: Chihuahua, Coahuila, Durango, Guerrero, Guanajuato, Estado de México, Oaxaca, Sonora, Tamaulipas, and Zacatecas.
Employment is considered local when the worker comes from the state where an operation of Industrias Peñoles is located.
| Period | Local employment (%) |
|---|---|
| 2024 | 75 |
| 2025 | 68 |
Resources allocated to community development programs based on communities’ needs and aspirations
| Period | Social investment (US$ M) |
|---|---|
| 2024 | 7.84 |
| 2025 | 7.23 |
Social
We promote education, sports, and recreational initiatives to strengthen the social fabric and support health care, within a framework of respect for human rights and cultural diversity.