Sustainability considerations are embedded throughout CMPC’s supply chain, guiding how environmental, social and governance factors are incorporated into procurement practices and supplier relationships. We work to continuously strengthen our procurement practices, supplier engagement and ESG management processes to promote more sustainable and responsible business practices throughout our value chain. 

As part of this ongoing effort, CMPC has been working on the development of a Public Commitment to Sustainable Raw Material Sourcing, aimed at complementing and reinforcing our responsible sourcing framework by establishing specific principles and actions to address the environmental and social impacts associated with the sourcing and use of raw materials. This initiative promotes the responsible use of natural resources and supports the reduction of environmental impacts linked to procurement activities, including biodiversity loss and deforestation, while also addressing human rights and local communities, collaboration with external stakeholders, third-party verification, and the progressive use of recycled and recovered materials.

ESG Supplier Program

At CMPC, we are committed to upholding the highest standards of corporate responsibility, including environmental, social and governance (ESG) practices. Our commitment to ESG extends to our supplier relationships, where we prioritize sustainability and ethical practices.

We understand the importance of our purchasing practices in promoting ESG values throughout our supply chain. Therefore, we continually review our purchasing practices to ensure they are in line with our Supplier Code of Conduct and consistent with ESG requirements. This includes avoiding potential conflicts with ESG obligations.

To further demonstrate our commitment to ESG, we set high standards for our suppliers. Suppliers who cannot meet our minimum ESG requirements within a set time frame are excluded from contracting opportunities. This approach allows us to prioritize partnerships with suppliers who share our commitment to sustainability and responsible business practices.

CMPC implemented an ESG evaluation of strategic suppliers, in order to give preference to suppliers with a better ESG performance in the supplier selection and contract award processes. During 2023 we incorporated ESG criteria as a minimum weight in our evaluation process, ensuring that sustainability considerations play a significant role in our decision making. On the other hand, suppliers that do not meet the minimum ESG requirements within a set period will be excluded from contracting with us. In this way, we encourage our suppliers to actively contribute to sustainable business practices and generate a positive impact on society and the environment.

Additionally, we understand the importance of educating our team members about their roles in the ESG vendor program. To ensure a full understanding of our goals and expectations, we provide comprehensive training to our company’s buyers and internal stakeholders. This training equips them with the knowledge and tools to effectively support and implement our ESG vendor program. For Softys, these trainings are carried out in conjunction with EcoVadis.

In line with the objectives set out in the 2026 ESG Supplier Program, we will once again conduct a sustainability assessment of our strategic suppliers this year. This process will allow us to measure the progress made compared to the results achieved in previous cycles, identify opportunities for improvement, and strengthen the management of environmental, social, and governance (ESG) issues. Furthermore, the process aims to promote continuous improvement and capacity building within our supply chain, helping to build long-term relationships with suppliers that are more resilient, competitive, and sustainable, in alignment with the company’s sustainability challenges and commitments.

ESG Supplier Governance

CMPC is strengthening its supply chain ESG governance through the development of a Sustainable Procurement Policy that will provide a common framework for responsible sourcing and supplier management. The policy will integrate existing practices, including ESG assessments, strategic supplier engagement, supplier development initiatives, and the incorporation of ESG criteria into procurement processes.

Oversight of the procurement strategy and supplier ESG management is led by the Chief Procurement Officer (CPO), while implementation is carried out by the Strategic Supplier Relationship Management, ESG and Procurement Contracts teams. Progress is monitored through supplier action plan reviews, periodic follow-up meetings, and monthly KPI tracking reviewed in formal Performance Dialogue sessions led by the CPO. Performance and progress are also reported through CMPC’s Integrated Report as part of the Company’s broader sustainability disclosures.

The organization has criteria and definitions that help identify and classify suppliers:

• Strategic suppliers: are those who provide goods and/or services with high impact on company performance, either due to the amount traded or the complexity and criticality of the equipment or processes involved. Variables such as operational criticality, billing total, concentration of suppliers by category, technical and logistical complexity are used for their calculation. The Kraljic Matrix was used as a methodological tool.
• Local supplier: The Company’s General Procedure for Developing Local Suppliers defines them as having a permanent and close relationship with the local community where their productive operations are based as a result of their origins, ownership and initiatives that have positive impacts on employment and the sustainable development of the community.
• MSME Supplier: Each country where CMPC operates has its own specific definitions that cover micro, small and medium-sized enterprise suppliers.

– Argentina: definitions according to business line and annual sales (construction: up to ARS 466.9 million; services: annual sales up to ARS 222.1 million; trade: annual sales up to ARS 1,518.3 million; industry and mining: annual sales up to ARS 1,125.4 million; agriculture and livestock: annual sales up to ARS 334.9 million (Source: Ministry of Economy, Government of Argentina, 2024).

– Brazil: companies with annual sales of up to BRL 360 million (Source: Government of Brazil, 2024) 

– Chile: companies with annual sales of up to 100,000 UF (Source: Ministry of Economy, Development and Tourism, Government of Chile, 2024).

– Mexico: companies with annual sales of up to MXN 250 million. (Source: Government of Mexico, 2024) 

– Peru: companies with annual net income of up to 2,300 tax units (UIT) in the fiscal year. (Source: Congress of the Republic of Peru, 2024)

Since 2022, CMPC businesses have had an evaluation process that seeks to measure the performance of its suppliers in sustainability matters, through a model that considers environmental, economic and social factors. The evaluation methodology is comprehensive, applied both remotely and in the field, and considers the following aspects:

• Country-specific risk: Each country of operation presents different degrees of political, economic and social risk, which may affect the stability and reliability of suppliers.
• Sector-specific risk: Each sector has its own particular challenges, so its specificity is taken into account, as well as environmental regulations, labor practices and supply chain vulnerabilities. Potential issues are identified and we work collaboratively to mitigate them effectively.
• Product-specific risk: Product risks can have an impact on the performance and reliability of suppliers, so risks associated with specific products, price volatility and interruptions in the supply chain are analyzed.

The process evaluates all suppliers of goods and services to ensure compliance with quality specifications, delivery terms, risk management and other obligations established in the respective contracts or purchase orders. Significant risks assessed during supplier evaluation include financial backing, customer diversification, accident and occupational safety indicators, compliance with legal and labor obligations,applicable certifications, conflicts of interest, global crimes (such as human trafficking and terrorism) and environmental issues. Lastly, supplier eligibility is determined based on an exhaustive verification, which includes financial analysis, fiscal regularity, mandatory records and technical evaluation.

These standards and methodologies provide clear and objective criteria for evaluating supplier performance in areas such as human rights, labor practices, environment, ethics and responsible supply chain.

The specific ESG criteria considered in the evaluations are:

Based on supplier assessments, companies are supported in implementing corrective actions and improvement plans to address identified gaps.

In the supplier evaluation process, both newly registered suppliers and those that bill around 1 billion dollars a year are evaluated. CMPC evaluates its suppliers of goods and services to ensure compliance with quality specifications, delivery terms, risk management and other obligations established in the respective contracts or purchase orders. Significant risks assessed during supplier evaluation include financial support, sole proprietors with exclusive billing to the company, workplace accidents, non-payment of employee pensions, applicable certifications, conflicts of interest, global crimes (such as human trafficking and terrorism) and environmental problems. Finally, we determine the eligibility of the supplier based on a thorough verification, which includes financial analysis, fiscal regularity, mandatory registrations and technical evaluation.

We achieved 100% assessment coverage of the target suppliers defined in the program. Subsequently, all suppliers were notified of their results, ensuring transparency and awareness of their performance on ESG issues. Additionally, suppliers whose assessments identified areas for improvement participated in personalized feedback sessions, where the identified gaps were analyzed and specific action plans were agreed upon. These plans focused primarily on strengthening management in the areas of Emissions and Climate Change, Human Rights, and Governance, promoting concrete actions that drive continuous improvement and contribute to the development of a more sustainable, resilient supply chain aligned with ESG best practices. As a result, 84.6% of participants in the ESG assessment now have their respective action plans in place.

Supplier Evaluations 2025

In 2025, CMPC had a total of 21,619 Tier 1 (direct) suppliers. CMPC does not apply a non-Tier 1 supplier classification, as its procurement model is based exclusively on direct supplier relationships. Therefore, all suppliers with which the Company engages are considered Tier 1 suppliers. During 2025, CMPC assessed 2,099 of those suppliers through remote and on-site evaluations covering ESG-related topics. A total of 360 strategic suppliers were supported through action plans aimed at strengthening their ESG performance and risk management practices. 

In addition, CMPC implemented capacity-building programs designed to systematically enhance supplier performance on specific ESG topics. In 2025, the fifth edition of the Local Supplier Development Program (PDPL) was implemented, an initiative in which 277 people from 127 companies participated. Among the key results achieved, it is important to highlight that 33.3% of the participating companies managed to close the gaps identified between the initial assessment and the final evaluation. Additionally, 18% of suppliers increased their total sales, and 28% created new formal jobs, contributing to the strengthening of their capabilities, competitiveness, and long-term sustainability.

Sustainable Procurement Performance Indicators

To strengthen responsible sourcing practices and promote sustainability throughout its supply chain, CMPC integrates environmental, social, ethical and governance requirements into supplier onboarding, contracting, evaluation and development processes. During 2025, the Company achieved the following results:

 
The Supplier Code of Conduct constitutes a mandatory requirement for supplier registration and establishes the minimum standards expected regarding business ethics, environmental management, labor practices, human rights and regulatory compliance. These requirements are further reinforced through sustainability clauses included in supplier contracts.

As part of CMPC’s ESG Supplier Program, 94% of strategic suppliers were audited on ESG topics during 2025. All suppliers assessed received formal feedback and agreed action plans aimed at addressing identified gaps and strengthening their sustainability performance.

In addition, all procurement professionals participated in sustainability training activities during 2025 as part of the Procurement Next Level program, strengthening internal capabilities to integrate ESG considerations into procurement and supplier management decisionsThe Supplier Code of Conduct constitutes a mandatory requirement for supplier registration and establishes the minimum standards expected regarding business ethics, environmental management, labor practices, human rights and regulatory compliance. These requirements are further reinforced through sustainability clauses included in supplier contracts.
As part of CMPC’s ESG Supplier Program, 94% of strategic suppliers were audited on ESG topics during 2025. All suppliers assessed received formal feedback and agreed action plans aimed at addressing identified gaps and strengthening their sustainability performance.

In addition, all procurement professionals participated in sustainability training activities during 2025 as part of the Procurement Next Level program, strengthening internal capabilities to integrate ESG considerations into procurement and supplier management decisions

Remote Supplier Assessments

Remote supplier assessments are performed with systematic verification of evidence. During 2023, CMPC implemented an ESG (environmental, social and governance) audit to measure supplier compliance with the standards established by the Company. In addition, audits are conducted for suppliers defined as “strategic”, to guarantee compliance with internal and regulatory requirements. The process determined opportunities for improvement in the Company’s suppliers, which were converted into action plans for each of the evaluated suppliers. During the first quarter of 2024, the Company deepened contact with those suppliers not evaluated, in order to reach the total sample. Softys uses an online platform provided by EcoVadis, where suppliers complete questionnaires and provide the required documentation to demonstrate their sustainability performance.

During 2025, the process of providing feedback to each of the strategic suppliers evaluated on ESG issues was completed. We also worked with them to define and align action plans aimed at addressing the identified gaps and strengthening their sustainability performance, thereby promoting continuous improvement in their management practices.

On-Site Supplier Evaluations

Supplier evaluations can also be conducted in person by employees of the purchasing company or a contracted consultant (second party evaluation). CMPC carries out on-site evaluations for each service execution, where the Evaluation and Incorporation Committee evaluates the supplier’s performance. During 2023, an ESG indicator that involves planned on-site visits to suppliers that do not meet the company’s standards was implemented. Third-party assessments are also being implemented by CMPC through an accredited and independent audit entity as part of the ESG audit process. Suppliers who score below 60% overall (poor or very poor) for two consecutive years or three times within a five-year period are not eligible to become CMPC suppliers. During 2025, 55,247 Service Acceptance Forms (HAS) were evaluated, corresponding to 1,980 suppliers who provided services at the company’s various facilities. These evaluations considered criteria related to Safety, Order and Cleanliness, the Environment, Quality of Execution, Planning, Autonomy and Supervision, Energy Efficiency, and Safety, enabling the company to monitor and strengthen the overall performance of suppliers in the delivery of their services.

Evaluation standards and methodology

At CMPC, our supplier evaluation methodology encompasses a comprehensive approach that considers the specific risk of each country, the specific risk of the sector, and the specific risk of the products. We understand that different countries present different degrees of political, economic and social risk, which can affect the stability and reliability of our suppliers. Therefore, we carefully assess the risks associated with operating in different countries to ensure that our suppliers can meet our standards and deliver consistent quality.

Furthermore, we recognize that each sector has its own unique risks and challenges. We take into account the specific risks associated with the sector in which our suppliers operate, such as environmental regulations, labor practices and vulnerabilities in the supply chain. Through a thorough assessment of industry-specific risks, we are able to identify potential issues and work collaboratively with our vendors to effectively mitigate them.

We also understand that product-specific risks can have a significant impact on the performance and reliability of our suppliers. We analyze and assess the risks associated with specific products, including price volatility, supply chain disruptions, and sustainability concerns. This allows us to make informed decisions when selecting suppliers and ensuring they have the necessary capabilities and safeguards in place to manage product-specific risks.

For the ESG audit, CMPC uses international standards and methodologies such as DJSI, CDP, among others. The relevant criteria are measured using assessments from related organizations such as the General Treasury of the Republic, mutual funds, government institutions, etc. Softys uses the EcoVadis platform, which is based on the principles of the United Nations Global Compact, the international standards of the International Labor Organization, the Global Reporting Initiative and the Global Compact Index. These standards and methodologies provide clear and objective criteria for evaluating supplier performance in areas such as human rights, labor practices, the environment, ethics, and responsible supply chain.

Corrective/Improvement Action Plans for Suppliers

CMPC implemented an ESG indicator that includes on-site visits to suppliers that do not meet the company’s standards. Action plans are developed in each case to address the gaps identified. Softys provides recommendations and guidance to suppliers through the EcoVadis platform to help them implement corrective or improvement action plans. These plans may include specific measures to address identified deficiencies and improve performance in key sustainability áreas

Support to Suppliers in the Implementation of Corrective and Improvement Actions

At CMPC, we provide remote and on-site support to suppliers in the implementation of corrective and improvement actions. We have a comprehensive technical support program designed to improve vendor ESG capability and performance. Our Local Supplier Development Program follows the following stages:

• Diagnosis: We evaluate the current practices of the suppliers and identify areas for improvement.

• Identification of Opportunities for Improvement: We detect gaps and opportunities for improvement.

• Strengthening: We provide resources, training and guidance to help suppliers strengthen their practices.

• Accompaniment and Implementation of Improvement Plans: We provide continuous support to suppliers during the implementation of improvement plans.

• Measurement, Results and Impact: We measure the results of improvement efforts and evaluate their impact

Softys also offers strong support to suppliers on their sustainability journey. We provide suppliers with a detailed report that highlights specific areas for improvement. This report includes specific recommendations and action points to address the identified gaps. In addition, our platform offers additional resources and tools to help suppliers implement any necessary corrective or improvement action

All suppliers assessed through EcoVadis have free access to our learning platform, educational resources, training courses and materials related to sustainability and corporate responsibility. We believe in providing support without additional costs. In addition, our suppliers can seek help through the EcoVadis support center for any additional guidance they may need.

Supplier Development

At CMPC, we understand the importance of involving and supporting our suppliers in the adoption of ESG (Environmental, Social and Governance) practices. We have implemented a Supplier Development Program with the objective of providing information, training and support to our suppliers to ensure that they meet the requirements of our program.

Information and training

Information and training are provided to suppliers on the company’s ESG program, process, and requirements. In 2022, CMPC completed a Local Supplier Development Training Program for 100 companies associated with the company, addressing topics such as occupational health and safety, compliance, systems, finances, sustainability, among others. I

n line with this strategy, the fifth version of the Local Supplier Development Program expanded its regional scope to include 80 Spanish-speaking companies (Chile, Mexico and Peru) and 42 companies from Brazil, doubling participation in Brazil. Implemented in partnership with Sidere and Sebrae, the initiative focused on prospecting strategic partners for the Company’s new growth projects. In this program, CMPC provides industry best practice examples, encouraging suppliers to replicate and contribute to ESG efforts.

At Softys, guided by our Responsible Supply Policy, we annually select our critical suppliers and offer them a webinar with the following objectives:

• Communicate transparently the company’s sustainability strategy.
• Clearly and concisely convey Softys’ sustainability objectives, goals and approaches.
• Build commitment to better understand Softys’ sustainability expectations and how suppliers can align with them.
• Encourage networking and collaboration between Softys and its suppliers.

In addition, through our Supplier Web Portal, suppliers can register themselves in our program and learn about our sustainability strategy.

Since 2021, we organize events for our suppliers that reinforce our sustainability strategy and recognize those who have achieved the highest scores:

• Softys Business Partner Awards (in person): We recognize and reward outstanding suppliers during this event.
• Softys Business Partner Awards (online transmission): In this global public event, aimed at our suppliers, the current strategy of Softys was presented, as well as how we intend to transform ourselves for the future, contributing to a more sustainable society.

These events serve as a platform to promote sustainability and encourage positive reinforcement among suppliers who have demonstrated excellence in their practices.

Access to ESG performance benchmarks

As part of the Local Supplier Development Program, we provide real examples of best practices in the industry so that our suppliers can replicate them and contribute to the ESG approach.

At Softys, through our digital assessment platform, suppliers have access to compare their global score and scores in specific areas (environment, labor practices and human rights, ethics and sustainable procurement) against a vast global database. from EcoVadis, classified by country/territory and sector.

For a detailed list of our suppliers of goods and services, please visit Social Field/People/Goods and Services Suppliers/