The set of greenhouse gas emissions, produced directly or indirectly by individuals, organizations, products, events, or geographical regions and expressed in terms of CO2 equivalent, make up the carbon footprint as a way of quantifying the impact that an activity or process of a company has on climate change. According to GHG Protocol, it consists of the following scopes:

CMPC has implemented a Climate Transition Plan since 2024, aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and IFRS Sustainability Disclosure Standard S2. The plan is founded on the Company’s Environmental and Climate Change Policies and is designed to support CMPC’s Net Zero ambition by 2040.

The plan is structured around seven pillars: 

• (i) a Board-approved Net Zero ambition; 
• (ii) A robust greenhouse gas inventory prepared in accordance with the GHG Protocol; 
• (iii) Science-based emissions reduction targets validated by the Science Based Targets initiative (SBTi); (iv) An integrated governance through the Net Zero Committee; 
• (v) Transition pathways to identify and prioritize low-carbon investments; 
• (vi) Sustainable financing mechanisms, including green bond issuances; and 
• (vii) Independent monitoring and verification of progress through annual sustainability reporting.

CMPC’S DECARBONIZATION STRATEGY

CMPC’s decarbonization strategy combines operational efficiency, renewable energy use, low-carbon technologies, sustainable forestry initiatives, and value-chain engagement.

• For Scope 1 emissions, key initiatives include: fuel-switching projects in lime kilns, increased use of biomass-based fuels, methanol, crude tall oil (CTO), and hydrogen, as well as the recovery of hydrogen from industrial processes. The Company also continues to improve energy efficiency across operations while leveraging sustainable forest management practices that contribute to carbon sequestration.
• For Scope 2 emissions, CMPC continues transitioning toward renewable electricity sources across its industrial operations.
• For Scope 3 emissions, the Company works collaboratively with critical suppliers to reduce upstream emissions and promote lower-carbon value chains. In addition, wood-based products continue to function as temporary carbon reservoirs (sinks), contributing to long-term carbon storage.

Since 2024-2025, CMPC has applied an Internal Carbon Price (ICP) of USD 50/tCO₂e to support investment evaluation and capital allocation decisions. This shadow carbon price enables the Company to integrate emissions-related costs into project assessments, supporting the prioritization of initiatives aligned with CMPC’s Net Zero strategy and improving resilience to future carbon pricing mechanisms and climate regulations.

CMPC does not currently disclose a standalone climate-transition capital expenditure target. However, climate-related considerations are integrated into strategic investment decisions through the Company’s Net Zero roadmap, ICP mechanism, low-carbon technology deployment strategy, and Sustainable Debt Policy. In addition, Project Natureza, represents an investment of approximately USD 4.5-4.6 billion, with key sustainability and resource-efficiency considerations, including renewable fiber production, high-efficiency industrial processes, and low-carbon operational design. While primarily a strategic growth investment, the project is expected to support long-term transition objectives associated with renewable materials and the bioeconomy.

CLIMATE TRANSITION GOVERNANCE AT CMPC

Climate transition governance is led by CMPC’s Net Zero Committee, coordinated by the Sustainability Department and supported by senior executives from Industrial Operations, Projects and Strategy, Finance, and Corporate Studies. The Committee oversees the implementation of the climate transition plan, progress toward emissions reduction targets, and prioritization of decarbonization investments.

STAKEHOLDER ENGAGEMENT

While CMPC does not currently maintain a stakeholder engagement process dedicated exclusively to its Climate Transition Plan, climate change is systematically addressed through the Company’s corporate Stakeholder Engagement Framework. Climate and water-related issues are regularly discussed with key stakeholder groups, including regulators, local communities, employees, customers, and industry associations. These engagement processes contribute valuable input to the Company’s climate strategy and risk management approach.

SOCIAL IMPLICATIONS OF CMPC’S CLIMATE TRANSITION PLAN

CMPC recognizes that climate change has significant social implications and therefore incorporates community resilience into its broader sustainability strategy. The Company addresses climate-related physical risks, particularly water scarcity and wildfires, through targeted community investment programs.

Key initiatives include: 

• Desafío Agua para Chile, which reached its 100th project milestone in 2025 and provides long-term water access solutions to vulnerable rural communities, and 
• Softys Contigo, which promotes access to clean drinking water, sanitation, and hygiene. 

In parallel, CMPC invested USD 25.1 million in community engagement and social development initiatives in 2025 and continued strengthening wildfire prevention through community-based programs such as the Community Prevention Network and Bosque Vivo. These initiatives demonstrate how CMPC seeks to enhance community resilience while addressing key climate-related physical risks.

Find out more about our climate-related strategy and initiatives in our Sustainability Report 2025.

In 2020, CMPC conducted a full scope 3 study, expanding its emissions inventory and including all the categories recommended by the GHG Protocol. Therefore, the variation compared to 2018 is not an actual increase but the results of including the new categories.

In 2021, we joined the global initiative Business Ambition for 1.5°C, aligning ourselves with the Race to Zero campaign. This commitment entails becoming a net-zero emissions company by 2040. Race to Zero is a United Nations-led campaign that aims to fill this gap by collaborating with businesses, cities, regions, investors, and financial and educational institutions, all committed to achieving net-zero carbon emissions by 2050 at the latest.

In 2022, we entered and validated our Scope 1 and Scope 2 targets, as well as our Scope 3 targets, with the Science Based Targets Initiative (SBTi).

CMPC fully supports the objectives outlined in the Paris Agreement and actively promotes the development and implementation of policies and regulations that align with this commitment in all countries where we operate. To ensure that the activities that may have the potential to influence public policy are in line with this commitment, Corporate Affairs oversees all engagements with trade associations and donations associated with political influence. Furthermore, any activities pertaining to representation, company’s stance, working groups, and technical and/or strategic aspects related to climate change are directed to the Sustainability Management department, as they possess the required expertise in this area. The Sustainability Manager plays a pivotal role in bringing key issues to the Sustainability and Regulation Committee, which convenes on a quarterly basis. The committee is composed by the Chairman of the Board, three (3) Directors, the CEO, Vice President of Legal and Compliance, Vice President of Corporate Affairs and Sustainability, Environment, Safety and Occupational Health Manager, and the Sustainability Manager.

In 2025, CMPC continued strengthening its climate-related risk and opportunity assessment in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Physical climate risks were evaluated using IPCC climate scenarios (SSP1-2.6, SSP3-7.0 and SSP5-8.5) across short-, medium-, and long-term horizons, extending through 2080. The analysis identified wildfire risk, water stress, changing precipitation patterns, and impacts on forest productivity and operational continuity as key physical climate risks. Transition risks and opportunities were assessed using internationally recognized scenarios and frameworks, including those developed by the Network for Greening the Financial System (NGFS), the International Energy Agency (IEA NZE, APS and STEPS scenarios), and the World Business Council for Sustainable Development (WBCSD). 

The assessment considered the implications of evolving climate policies, carbon pricing mechanisms, regulatory requirements, technological developments, and market expectations under different decarbonization pathways. Key transition risks identified include increased exposure to carbon taxes and emissions regulations, including the European Union’s Carbon Border Adjustment Mechanism (CBAM), as well as the need to accelerate decarbonization efforts to maintain competitiveness and market access. The analysis also highlighted opportunities associated with renewable energy, technological innovation, nature-based solutions, ecosystem services, and access to sustainable finance, supporting CMPC’s climate resilience and decarbonization strategy.

Climate-related risks and opportunities were evaluated using historical climate information, scenario analysis, operational data, and input from internal specialists and business leaders. In accordance with CMPC’s risk management framework, risks are assessed across the following time horizons: 

• Short-term: Risk with a probability of occurrence between 6 months to 2 years,  
• Medium-term: Risk with a probability of occurrence between 2 to 5 years, and 
• Long-term: Risk with a probability of occurrence between 5 to 10 years.

Internal Carbon Price

During 2025, CMPC continued to apply its Internal Carbon Price (ICP), developed in 2024, as a tool to integrate climate-related considerations into business decision-making and support the achievement of its Net Zero commitments. The ICP assigns an economic value to greenhouse gas emissions and emission reductions, enabling climate impacts to be incorporated into financial decision-making, particularly in investment evaluations, procurement processes, and operational activities. To support more informed capital allocation decisions, the cost of emissions is incorporated into project cash flows through the Company’s financial assessment process.

CMPC applies the ICP primarily to investment projects with a direct impact on Scope 1 emissions, helping prioritize initiatives that contribute to decarbonization and long-term emissions reduction pathways. The Company also continues to evaluate the application of this approach to suppliers whose products and services influence Scope 1 emissions, including energy-related purchases and forestry operations.

The ICP is based on a shadow carbon price of USD 50/tCO₂e, which is used to support project evaluation and investment prioritization. The tool complements CMPC’s climate-related risk and opportunity assessment, including the evaluation of transition risks associated with evolving carbon pricing mechanisms and climate regulations, such as Chile’s Green Tax, Brazil’s Emissions Trading System, and the European Union’s Carbon Border Adjustment Mechanism (CBAM). By incorporating carbon costs into decision-making, CMPC seeks to strengthen climate resilience, improve investment prioritization, and support the effective implementation of its decarbonization strategy.