PROMOTING BIODIVERSITY CONSERVATION CONTRIBUTING TO SUSTAINABLE URBAN DEVELOPMENT
ROBERTO ANGELINI: “OUR PURPOSE IS OUR ROADMAP.”
THE ROAD TO SUSTAINABLE FINANCING
THE MARKET ACKNOWLEDGES EMPRESAS COPEC’S VISION OF THE FUTURE
LEMU NGE: THE FIRST IMAGES FROM SPACE
EMPRESAS COPEC'S CORPORATE
Envisioning the country we want to be, dreaming of the world we want to leave to future generations is a drive to overcome obstacles, face challenges and work towards a better future.
Dreaming leads us to action and transformation, both personally and socially.
Dreaming, then, brings hope.
Hope for the future generations.
“Facing
When imagining the future, it seems inevitable to ask ourselves: how do we dream what our country will be like in the next two or three decades? A necessary and urgent question, which seems to find increasingly limited answers. While in the past there seemed to be collective dreams of progress and development for Chile, today there is a worrying shortage of projects. The collective ones are disappearing, and the personal ones are limited. We have reduced our aspirations to the immediate, losing the ability to imagine, project or dream that society we want to be in the future, and for which we
can work today to make it come true. Tomorrow's goals, today's sacrifices.
Those of us who participate in the business world, or in an entrepreneurial activity, are dreamers by nature. We are not satisfied with what exists, but we constantly plan for what could be. We imagine, plan and realize possibilities, almost always in scenarios of uncertainty. Dreaming is not synonymous with being naive, but is the first step towards action.
To try to change the world, through what we do, optimism is indispensable, a clear stamp that distinguishes businessmen and entrepreneurs. But taking risks and believing in a given project with confidence does not mean being unrealistic, so it is always necessary to understand limits and challenging environments. Therefore, it is natural to look for the best options and scenarios to carry out investments, and that is not ideology, it is simply risk management.
Chile is not at its best moment in terms of economic growth. No one can be satisfied with the current figures, as even the country's highest authorities have recently acknowledged. It is positive that at least we are all aware of this reality, especially after so much time wasted in discussing how little we are growing, focusing more on explaining the past than on unlocking the future. Because, if we remain paralyzed in this discussion, others are moving forward and taking leading positions in industries of the future, leveraging opportunities that we could be missing. Economic growth is a source of wellbeing for all, and is the main way to obtain resources to address the social challenges we face, in a sustainable manner.
Our country has unique advantages that we should not underestimate. With the copper price hovering around 4 dollars per pound, abundant lithium reserves, the energy transition underway and emerging sectors with great potential, such as green hydrogen, among others, there is no reason for conformism or lack of ambition. What we need is a strategic vision that transforms these resources into sustainable development, as part of a long-term project for the country. This plan must include fostering an environment that encourages investment, productivity and innovation. And this goes beyond legal improvements; it requires acting with conviction. It is a matter of attitude.
Another key is to agree on certainties. The country has been dragging along years of uncertainty on a wide range
“Those of us who participate in the business world, or in an entrepreneurial activity, are dreamers by nature. We are not satisfied with what exists, but we constantly plan for what could be. We imagine, plan and realize possibilities, almost always in scenarios of uncertainty. Dreaming is not synonymous with being naive, but is the first step towards action.”
of issues. One of them is related to the tax structure. With the possible reform that is being discussed today, we would add almost twenty modifications of different scales since 1990, that is to say, an average of one amendment every two years. This is an attack against a competitive tax framework, clear rules and legal certainty, essential conditions for attracting foreign and local investment. It is not a matter of avoiding necessary reforms or discussions, but of ensuring that they are balanced, far-sighted and incorporate technical and expert voices, so that they last over time. The issue goes beyond the level of rates: investment is attracted if competitiveness is offered, yes, but above all, stability.
In addition, we need a modern and efficient State, which is a strategic partner of new projects. Once we heard an authority of a country where we have made investments tell us that we are “their clients.” This is acting for a shared project for the country, each one in their own role. The initiative being discussed in parliament to speed up permits is an important step to promote greater growth, but it is probably insufficient. It is not enough to reduce project approval times; we must also ensure that these processes provide security. Once the permits have been granted, the necessary certainty must be provided to develop a project, taking into account the legal procedures that have delayed so many initiatives in Chile. In this sense, instead of focusing solely on approving this legislation, would it not be better to carry out a more profound reform of the system? Why not rethink it from scratch and rebuild one that is up to the
challenges of the 21st century? A system at the service of citizens, which, maintaining demanding compliance criteria, promotes at the same time entrepreneurship and values the investor as a partner, can make a difference. As important as deadlines is the willingness: we must move from a mindset of opponents to one of a collaborative spirit, understanding that we all win if things are done well and quickly.
We must also finish overcoming ideological prejudices that hinder our potential. In order to grow, private activity is key, not only in Chile, but in all countries that have reached development, taking advantage of their structural strengths and competitive advantages. Chile is a country of natural resources and, far from feeling embarassed about this, we should be proud of it. The forestry and mining industry, for example, are an engine of sustainable development that generates employment and boosts local economies. Building on our strengths, instead of devaluing them, is the key to move forward.
But we cannot talk about development without thinking about training of our children and teenagers. For this reason, education must be another focus of our efforts. Recent studies warn us that 60% of second grade students in Chile do not reach the expected levels of reading comprehension. This is a reality that we must change. We must urgently invest in early childhood and elementary education. The results are long term, they cannot be seen in a single election period, but they are more necessary than ever, given the speed of change that we see today in modern society.
Finally, dreaming of a better Chile also implies thinking about its beauty, culture and social cohesion. A clean and orderly country with a strong civic sense is not just an aesthetic aspiration, but also an urgent need in the face of a worsening decline that manifests itself both in the deterioration of neighborhoods and traditional areas, as well as in the increase in the perception of violence and insecurity. We must recover our pride in who we are and rediscover the value of trust and respect for others, even in the most mundane actions.
Empresas Copec is today an increasingly global company, but one that does not forget its roots, its responsibilities. That is why we have taken on the challenge of building a better future for generations to come. Our history is shaped by a longterm vision, by the development of projects that transform industries, by understanding the important role we play in environmental challenges, given the nature of its core business, as well as in the energy transition, in line with its foundational activity. And we will continue to do so, committing investments, promoting innovation and supporting education.
For all of the above reasons, it is important that we begin to leave behind the trap of immediacy, of winning short battles at the cost of compromising the future. As a country, we have the challenge to dialogue again, in order to plan for the long term and work on collective projects. We manage the present so much that we forget about tomorrow and, in that neglect, we lose valuable opportunities. Every person, organization and nation needs a clear purpose, a future project, an inspiring
“Every person, organization and nation needs a clear purpose, a future project, an inspiring vision and a strategy to achieve it. Thinking about the future, reflecting, controlling our instincts, makes us more human.”
vision and a strategy to achieve it. Thinking about the future, reflecting, controlling our instincts, makes us more human.
Today, more than ever, it is the time to pause, to evoke silence, to stop and think, and to dream of the country we want to be. We owe it to future generations.
As part of Empresas Copec's 90th anniversary, Roberto Angelini reviews the history of the holding company: major milestones, lessons learned and upcoming challenges.
with first and last name
roberto angelini:
“ADDRESSING MAJOR GLOBAL CHALLENGES REQUIRES A LONG-TERM VIEW”.
Few people know that Roberto Angelini's dream was to study medicine, but he decided to give up that dream in order to continue with the business that had meant so much effort and sacrifice for his family. Furthermore, few know that, upon graduating from the Pontificia Universidad Católica with a degree in Civil Engineering, the current chairman of Empresas Copec did not immediately join the companies of the business group, which at that time were concentrated in the fishing sector. His first work experience was as an employee at Indus Lever (now known as Unilever), where he worked for two years as a Product Development Engineer.
What memories do you have of the beginning of your career in the business group?
I started working at Eperva as a plant engineer, under the administration of Mr. Abilio Gutiérrez, a contemporary of my father, who was a great teacher.
I keep the best memories of that time, since I started a new life in Arica with my wife Ana Maria and my daughter Daniela, who at that time was only six months old. And, the following year, my
son Maurizio was born. So these memories are shaped by the first years of life of my two eldest children. And it was a fortune, because we lived in a very quiet city, where I had the possibility to have lunch at home every day and to lead a very close family life.
It was in the mid-1970s when Roberto Angelini joined the business group. Following in the footsteps of his father, Gino, he moved to live in Arica, where he began his career as an engineer at the Eperva plant. About those beginnings, his almost five decades working in the companies and the current and future challenges, is what Roberto Angelini talks about in this interview conducted by Francisca Riveros, Chief Communications Officer of Empresas Copec.
“I carry fishing in my soul because we started out as a family in this industry when we arrived in Chile in the early 1950s.”
You have always said that, for you, the fishing industry has a special meaning. Why?
Well, I carry it in my soul because we started out as a family in this industry when we arrived in Chile in the early 50's. My father started the Arica plant; then Abilio Gutiérrez succeeded him, whom I replaced, and later, his son, Jorge Gutiérrez, took my place. So it was a rather unbelievable chain of events. It was a succession from father to son, a very beautiful story.
That is why I have such a strong feeling, so close to my heart, that comes from when we started in the fishing activity, affections that last until today.
After almost five decades working in this business group, what are the most significant changes you have seen during this period?
Well, as I said, we started with a small fishing company, Eperva, and then we grew in this area by adding other companies in the same business. Then, in the 1960s, we entered the forestry sector through Maderas Prensadas Cholguán. We were, until then, a small business group. We took the big leap in 1985, when we entered Copec, a company which, at that time, was practically bankrupt. We then had to rationalize all operations, pay debts, reorganize the whole company.
At that time, Copec had investments as diverse as ARAUCO, Banco de Santiago, CCU, Ladeco, Saesa, Frontel, the retail company ABC and the Pesquera Guanaye. But we decided to focus only on the forestry and energy businesses and gradually sell the rest of the companies that were not related to those. Over time, we have seen how, thanks to the work of a great team, each of these sectors has developed, both locally and internationally, mainly through ARAUCO, Copec and Abastible. In recent years, we have added a mining arm with Mina Justa in Peru, and the fishing area has diversified into the food industry with Nutrisco.
Compañía de Petróleos de Chile (Copec) is founded to market and distribute fuels in the country.
Abastible is created to market and distribute liquified gas in Chile. Copec takes on the representation and distribution of Mobil products.
Celulosa Arauco and Forestal Arauco are acquired.
And among so many changes, what has remained intact in the business group?
What has prevailed intact is, first, integrity; second, excellent human relations; third, loyalty; fourth, long-term vision; and fifth, responsibility. These are five characteristics that we have maintained and I hope they will always remain in the administration of Empresas Copec.
For me they are core values. Everything we have achieved as a business group is not done alone, but together with a team of people, with very close human relationships. And with great loyalty. That is what I would say is the basis of a very solid team, very united, where we move forward and grow together.
What has been the most complex moment you have had to face during this period?
There have been several, as usual in the business world. Of course, one of the most difficult moments was when we had a long and complex arbitration trial with Carter Holt Harvey, from New Zealand, that was later acquired by US International Paper. We had invested in Copec in 1985, together with the New Zealand company, but the latter was later acquired by International Paper, which in turn was a competitor of ARAUCO, so they had a clear conflict of interest. There were many years of litigations, as they wanted to disregard the administration powers that the Chilean
Arauco y Constitución, a forestry company is born from the merger of Celulosa Constitución and Celulosa Arauco.
The Angelini Group becomes a shareholder of Copec after acquiring 41% of its share capital.
Fundación Educacional Arauco is established to strengthen teaching in municipal schools in the Maule, Biobío and Los Ríos regions.
Bioforest, a center of excellence and research, is created to develop and apply state-of-the-art technology in the areas of biotechnology, pulp, forestry assets and industrial plants.
Group had over the joint business. I had never been involved in a situation of that nature before. Fortunately, it ended very well for the Group, since the arbitrator agreed with us that we had the administration and ordered Carter Holt Harvey to pay the damages it had caused. At the end, Carter Hold Harvey sold us its share, for US$1.2 billion, leaving us with 60% of the control of Copec, through AntarChile.
And, of course, there are other difficult moments, which have occurred in the past and have challenged the professional and management team, leaving us lessons to be learned and encouraging us to review, strengthen and promote continuous improvements in our standards and controls. Difficulties that, at the end of the day, have given the management the confidence and capacity to face what is to come in a better way. We are a very large Group, in terms of assets and people, so we understand that difficult times are part of our journey.
Another complex event was the death of your uncle Anacleto Angelini. How did you live through that moment and what was it like to take his place in leading the business group?
Yes, that moment was very painful, since I always say that I had two fathers: the one who gave me life and my uncle Anacleto. For different reasons I lived with him and his wife, Aunt Marita, for several years during my school years. So it was quite painful to lose, first my father and, years later, him. They were very close and here in Chile they worked together to give life to what is today this group of more than 100 companies.
Compañía Minera Can-Can (now Alxar Minería) is founded to explore and develop gold, silver and copper deposits.
Igemar is born after the merger of the companies Pesquera Guanaye and Pesquera Iquique.
The Group takes its first steps in internationalization when ARAUCO acquires Alto Paraná, one of the leading pulp mills in Argentina.
The Angelini Group takes control of Copec, after acquiring an additional 30.05% of its shares.
I always lived together with these two brothers who ran the business, but with whom we also spent weekends, Christmas, etc. So it was quite hard when my father passed away prematurely in 1994 and, thirteen years later, when my uncle left us. We were very close. Uncle Cleto had his office next to mine, so we shared a lot. He worked until the last days of his life and died at the age of 93.
As I had been working with him for a long time in all the companies and on all the boards of directors, the transfer came very naturally when he left us. He imprinted on the business group a stamp and values that I have tried to maintain and promote to this day.
In your opinion, what has been the group's greatest achievement?
It is difficult to think of just one, because I would say there have been several. One of them is the development, growth and internationalization of the companies. Today we have operations in 16 countries and a commercial presence in 80.
The Copec-Universidad Católica Foundation is created to promote applied scientific research in the area of natural resources.
Copec becomes the subsidiary in charge of the liquid fuels and lubricants business, and the parent company turns into a financial holding company, changing its name to Empresas Copec.
ARAUCO acquires pine plantations, an MDF board plant, a plywood plant and a resin plant in Brazil.
In the case of ARAUCO, it is satisfying to see how we have developed the forestry business, first in Chile and then with the expansion into Argentina, Uruguay, Brazil, the United States, Mexico, Portugal, Germany, Spain and South Africa.
Copec's leadership in the Chilean market has also been a great achievement for so many years, 89 to be exact, as it celebrates nine decades next year. To see how it has consolidated itself as a brand that is very much loved by our compatriots and how it has managed to take, even to countries such as Colombia, Peru, the Dominican Republic and others, the “first in service” model. In addition, it is impressive to see how Copec and other companies in the group such as Abastible
Elemental is founded with the goal of developing social housing projects to reduce poverty and improve people's quality of life.
are evolving, adjusting and transforming their business model to lead the energy transition in the country. Abastible is already present in 6 countries.
I think it was also an important decision to have invested, more recently, in Mina Justa, in Peru. So I believe that international growth has been a tremendous achievement and has made Empresas Copec a relevant player not only in Chile, but also globally. Chilean companies, but with a global presence. And behind that there is a lot of work, from a lot of people.
Within these achievements, is there any particular moment or milestone that you remember in particular?
That's tough, so many come to mind! One of them is the inauguration of ARAUCO's Line 2 in 1991, which was attended by the President of the Republic at the time, Patricio Aylwin, Cardinal Juan Francisco Fresno and several ministers. It was a very significant moment, because ARAUCO was taking a very important step, doubling its pulp production capacity and positioning itself on a global level, and the highest authorities of that time celebrated with us.
Education is a relevant topic guiding the business group's management, why, in your opinion, is it so relevant?
When my father and uncle came from Italy to Chile to start a business and as they grew in their industrial activities, they realized that there was a great deficit in education. There were very skilled people, very willing to work, with a desire to undertake, to develop, but there was a problem of education.
So the concern arose to help in this area. And the business group has been promoting, for many years now, several initiatives that benefit early childhood, _
Golden Omega is founded with the purpose of producing Omega 3 concentrates in the north of the country.
Copec acquires control of Terpel, the main fuel distributor in Colombia.
Abastible acquires 51% of the Colombian company Inversiones del Nordeste. Meanwhile, ARAUCO acquires the Moncure panel plant in the United States.
ARAUCO acquires Flakeboard Company Limited, incorporating seven panel plants in the United States and Canada.
“Purpose is a very nice phrase, but we can't just stop there, we have to put it into practice.”
children and young people from the most vulnerable sectors. We do this through our own organizations such as the Arauco, Constitución and Cholguán schools, the ARAUCO Educational Foundation, and the Terpel Foundation. We are currently supporting the Angelini Foundation, which is chaired by my sister, Patricia, and where my children and nephews and nieces participate.
We should also mention other external organizations, such as the Juan Pablo II Foundation, Belén Educa Foundation and Enseña Chile, and programs such as Copec's Viva Leer, among others.
So supporting education has been a very distinctive stamp of this business group.
Well, I believe that we have to innovate to continue leading. Our companies have a vocation to lead the businesses in which they participate, and to do so for decades it is essential to have innovation in the DNA. Undoubtedly, this has been a key and determining factor in the success of our companies. In times as changing as the ones we live in today, we must learn and unlearn, experiment without fear of making mistakes, open our minds and reinvent or transform ourselves as many times as necessary. And this is what Empresas Copec and its subsidiaries are trying to do.
In addition, and beyond our companies, as a business group and as a family we contributed with the creation of the Copec-UC Foundation and the UC Anacleto Angelini Innovation Center, a symbol of the relationship that
should exist between business, academia and society. A place to incubate projects and ventures with a very clear orientation: to help solve the country's problems.
How has the transition from leading a local company to a global one been for you?
I believe that this happens mainly by empowering and trusting the teams we have. In this business group we have really talented collaborators, who are fully committed and who understand perfectly where we are going. So that has been an essential support for me, to undertake in other countries, with all the challenges in terms of culture, idiosyncrasy, legislation, language, etc. The key has been that these teams are made up of people who, regardless of their nationality, share the same values I mentioned before: integrity, excellent human relations, loyalty, long-term vision and responsibility.
Empresas Copec and Universidad Católica de Chile inaugurate the Anacleto Angelini UC Innovation Center, with the purpose of promoting a pro-innovation and entrepreneurship culture and environment in the country.
ARAUCO acquires 50% of company Tafisa, incorporating panel plants in Spain, Portugal, Germany and South Africa. In addition, Abastible acquires Peruvian company Solgas and Ecuadorian company Duragas. Meanwhile, Empresas Copec enters the Dow Jones Sustainability Index Chile and the FTSE4Good Emerging Index.
ARAUCO acquires Masisa do Brasil, adding a line of MDF boards and another of MDP boards, and agrees to purchase Masisa's assets in Mexico, allowing it to add plywood, MDF boards, melamine coatings, a chemical plant, and a coating line, subject to approval by the authorities.
Today, society demands more from companies and expects more from them. What is your vision in this regard?
I think it is very good, since all companies, but especially large companies such as Empresas Copec and its subsidiaries, have an important role to play in the great challenges we face today as a society, both locally and globally. Challenges such as climate change, the growth and development of countries and social issues such as education, to mention a few that seem to me to be extremely relevant. I am convinced of the ability of companies to transform the world and, therefore, to play an irreplaceable role in addressing these challenges.
When you see and analyze the size of Empresas Copec, you also realize that the impact it can generate is huge and this implies a tremendous responsibility to promote a positive impact that benefits the greatest number of people. So, today companies do not exist only to produce, sell and generate profits. That, of course, is relevant, because you have to answer to shareholders and investors, but achieving this in the long
ARAUCO begins construction of the MAPA Project (Modernization and Expansion of the Arauco Plant), which involves an investment of US$2.35 billion. Alxar Minería acquires, for US$ 168.5 million, 40% of Peruvian company Cumbres Andinas, which in turn owns 100% of Marcobre, to carry out the Mina Justa project in Peru.
Copec launches Voltex, the most extensive network of service stations for electric vehicles in Latin America. ARAUCO inaugurates the Grayling project, the largest Chilean investment in the United States; US$450 million.
“I am convinced of the ability of companies to transform the world”.
In a complex scenario defined by the pandemic, ARAUCO certified its carbon neutrality, becoming the first forestry company in the world to achieve this goal. Meanwhile, Copec opened the largest electro-terminal in South America.
" The purpose of Empresas Copec represents what we exist for as a company. To shape the world for future generations."
term is a consequence of doing things well, of adding value to people, communities and countries. And it is along these lines that this year we redefined the purpose of Empresas Copec: To shape the world for future generations.
You mentioned the purpose of Empresas Copec, what does it mean to you?
Well, this purpose represents what we exist for as a company. To shape the world for future generations. It's a very nice phrase or statement, but we can't just stop there, we have to put it into practice, otherwise it's just a tagline. That's why our purpose is at the core of our business and is our roadmap. It is a commitment that drives us to promote sustainable investments and businesses, but it also implies making courageous decisions such as dismissing potential businesses or disinvesting in others that are not along these lines.
Copec publishes its climate change statement and plan to achieve carbon neutrality by 2030. Mina Justa makes its first shipment of copper concentrates.
Copec expands its business lines with the purchase of Blue Express and enters the financial sector with the digital wallet and prepaid card. The Nutrisco food holding company is created.
MAPA begins operations, adding a net annual production of 1,3 million tons of pulp.
Empresas Copec announces the largest investment in its history: the construction and start-up of the Sucuriú pulp mill in Brazil. This project involves an estimated investment of US$4.6 billion and an annual production capacity of approximately 3.5 million tons of pulp.
If companies, as you mention, play such a relevant role in society, why do you think there is so much distrust towards the private world? What have companies done wrong?
On the one hand, we have to consider that companies are managed by people and, therefore, they make mistakes, which affect their reputation and bring with them, of course, mistrust. The important thing, in these cases, is to acknowledge the mistakes, in a timely and transparent manner, resolve them, learn from them and establish protocols and measures to ensure that they are not repeated.
On the other hand, if we look at our history as a business group, we have kept a low profile and have communicated little about what our contribution is, beyond economic benefits. And while in the past that seemed to work, people, communities and society have changed and not only demand more from companies, but also demand greater transparency from them.
And that is where we are today. We are trying to communicate more, to spread the value that our business group generates in society and why it is good for the society that Empresas Copec exists. That is how this year we took an important step, since generally companies, at least in Chile, only tell what we do and how we do it. But with the #NoMoreShortTermism campaign, linked to our purpose, we are communicating what we believe in. Because we are convinced that facing global challenges, from climate change to economic inequality, requires a long-term view that considers the welfare of the next generations.
What does it mean to you to lead one of the most important business groups in Chile?
Well, it is a very big responsibility but I am not alone, I’m with a great team of collaborators. So I feel very responsible, but at the same time very well accompanied in this task. Fortunately, I have a first-class team, which gives me confidence, peace of mind and allows me to sleep well at night. The truth is that I feel tremendously proud of the team, old and new, Chileans and foreigners, of so many different professions, ages and experiences, but all of them with the same values.
For me, people are the most important thing. And that is a legacy from my uncle Anacleto, who always instilled in us the relevance of cultivating close and human relationships with people.
What about your family? What role does it play in your life as an entrepreneur?
My family has been a key pillar. First, because my father and my uncle Anacleto were the ones who came to Chile as entrepreneurs, they were the ones who started the business in an unknown country, from scratch. And today, my children, nieces and nephews work in companies of the group or participate in boards of directors, for which they have studied a lot, they have prepared themselves and have been learning about the business from different areas.
On a more personal level, I believe that my family has always been my driving force. My wife, my four children and my 12 grandchildren are, without a doubt, my greatest achievement in life.
And finally, how do you see Empresas Copec in 10 years' time, when it celebrates its first 100 years?
I see this business group growing in all its businesses: forestry, energy and natural resources, mining and food, through sustainable management, generating long-term economic value and delivering social and environmental value and wellbeing to the countries where we are present. And, of course, I see the team of Empresas Copec and its subsidiaries working hard and committed to the purpose of leaving a better world for future generations.
"For me, people are the most important thing. And that is a legacy from my uncle Anacleto, who always instilled in us the relevance of cultivating close and human relationships with people."
Giuseppe Angelini was a hemp merchant in Ferrara, northern Italy, which allowed him and his wife, Adalgisa Fabbri, to raise their three sons: Anacleto, Gino and Arturo. However, the Angelini Fabbri's life was hit hard in 1939: the arrival of the war would force the family to separate: Gino, Roberto Angelini's father, was called up for military service by the Italian army and his brother Anacleto went to Africa, where he would live for 10 years and develop a salt business, known as the “white gold” of the time.
Gino spent two years as a prisoner of war in Stuttgart, Germany, where he was forced to work in an armaments factory. There, he experienced first-hand the horrors of war and lost a close friend in a bombing raid. He and his four surviving partners made a pact: they would name their first male child after their deceased friend: Roberto.
When the war ended, Gino returned to Italy. His girlfriend, Silvana Rossi, was waiting for him there, after two years without seeing each other and knowing very little about each other. They married in Ferrara, in a simple ceremony, as times were not ripe for big celebrations. On July 30, 1948 they welcomed their first son, whom they named Roberto, fulfilling Gino's promise.
In 1948 Anacleto decided to go to Chile to start a business, after returning to Italy after the war and finding his homeland completely devastated. Two years later, Gino would also emigrate to the South American country. Meanwhile, Silvana and her son Roberto would remain in Italy, until 1951, when they boarded, with a luggage of only two trunks, the ship “Antoniotto Usodimare”, in Genoa. From there they would begin a 30-day voyage that would take them to the port of Valparaíso. There, Gino and Anacleto were waiting for them to travel by car to Santiago to settle in a simple lodging, downtown the Chilean capital. Three years later, another member of the family would arrive: Patricia, Roberto's only sister.
In Chile, Anacleto and Gino Angelini began a new life and a history of entrepreneurship defined by integrity, hard work, rigor and perseverance, values that allowed them to found and develop several businesses, which today consolidate the Empresas Copec parent company.
“Chile needs a model that learns from its own mistakes,” says John Müller in this reflection.
By John Müller
I read in the book “How Chile avoided being a case of frustrated development” the following summary: “In 2050, GDP per capita exceeded 90,000 dollars. The economic miracle that led the country to development was the result of the Great National Agreement of 2026, reached by Congress and ratified in a plebiscite by 70% of the voters, after realizing that three lustrums of stagnation did not satisfy the ambitions of Chileans. The changes were basically political: the first was to return to an electoral system that encouraged majorities and agreements, and the second was to move to a parliamentary regime, where governments are the result of negotiation in Congress. The President of the Republic became just the head of state and is in charge of protecting and expanding the three major consensuses: maintaining a strict fiscal management that prevents indebting future generations; a free market economy focused on growth and respect for private
property, and the protection of the environment and the integrity of the country. The president appoints the Minister of Domestic Affairs, who serves as head of government while having the support of a majority of the Congress”.
There is no such book as mentioned in the previous paragraph. Its predecessor, 'Chile: a case of frustrated development', published in 1959 by Aníbal Pinto Santa Cruz, is available, and is a reminder of how old the Chilean aspiration to reach development is. And, also, a sad example that with the ideas that dominated Chilean politics until 1973, including those of Pinto Santa Cruz himself, the country was a case of I want to and I can't. A Chile whose elite, to which he belonged, could reach high summits, but
In Chile, we can start with a great pact, where a harakiri by the political class gives way to an electoral system that rewards a policy of agreements, that retires many of them, but that prioritizes the good government of the country.
only served as an example for a great crowd that neither ate nor dressed with it.
Large-scale prosperity, which reduced extreme poverty to single digits, was only brought about by the combination of the liberal ideas of the Chicago economists - the reviled “model” - and the legitimacy of a democratic system. However, the obsession with the idea of an impure Constitution, born from a trauma equivalent to the circumstances surrounding the creation of the constitutions of Germany or Japan, led politicians to undertake a series of changes (and not to make others), which in 2016 had already mutated the physiognomy of a country that was growing at around 6% in the 1990s.
One of the changes was to decree the death of deregulated, low-tax Chile and to cut off the possibility of following
an archetype like the Irish one, which could have turned the country into an attractive platform for technological development and all kinds of businesses. The Irish low-tax model is criticized for the fact that the big tech money just passes through and leaves nothing behind, but that is a biased view, because the money “passes through” creating jobs, infrastructure and raising the qualifications of a population that, in addition, is lucky enough to master the “lingua franca” that is English. Between being Ireland or imitating Italy or Greece, Chile opted for the latter, without being in Europe and without a Roman Empire or Pericles.
“Between being Ireland or imitating Italy or Greece, Chile opted for the latter, without being in Europe and without a Roman Empire or Pericles.”
The floodgate for an unbridled increase in corporate taxes was opened by Sebastián Piñera in his first government and was finished off by Michelle Bachelet with the reform of her minister Arenas in her second term, which sentenced the country to very low growth.
The second major change was the deterioration of politics, which lost its capacity to govern the country. Driven by the myth that there was a hyper-presidentialism imposed by the
1980 Constitution, the figure of the President was weakened with successive amendments, which already in the first decade of the 21st century, with the emergence of the “fractious” deputies, showed signs of being tied down. The result is that since Bachelet II -and probably since Piñera I- there has not been a single amendment that goes ahead of the national problems. The President is just a traffic guard, who dictates the speed at which laws are processed.
These pruriences and bad decisions were the yeast of the social outburst of 2019, which marks the beginning of a pilgrimage of the Chilean people through the desert of their frustration. What is happening to us has much to do with an aphorism by Seneca: “There is no favorable wind for him who does not know where he is going.”
It is true that the economic model was showing signs of exhaustion in the first decade of the 21st century. Its great success was not liberalization, privatizations and the reduction of the size of the State or low taxes -which were very relevant-, but Chile's early commitment to opening up to the outside world. With it and with the dismantling of tariffs, the country was three lustrums ahead of the great phenomenon that would accelerate after 1989 with the end of the Cold War: the second globalization.
For years, the country reaped the dividends of this anticipation and the vision that fostered it. But with the new century and China's entry into the WTO, globalization began to change. Several experts have pointed out that the trade liberalization model of the 1990s, which benefited countries such as Chile and South Korea, is no longer useful for pulling nations out of underdevelopment, because value chains and the structure of societies have changed.
Therefore, the challenge of finding a new development model is enormous. Everything is further complicated by the renewed power of politics and geopolitics. A common criticism in Chile was that the Finance Minister was more in charge than the President. While that happened, the country made wise changes. Now, politics rules the economy all over the world. And the problem with this is that while economists think that free and incentivized cooperation generates positive-sum
games, with benefits for all, politicians (like their alter ego the military) believe that everything is a zero-sum game, where one’s gain is the loss of another one.”
Today, the world is extraordinarily complex. It is not known what Donald Trump's United States is going to do on core issues. Neither Vladimir Putin, nor the Iranian theocracy, nor Israel's Netanyahu. China is a mystery locked in a riddle. Europe, a geriatric nursing home whose leaders have decided to take a vacation from world history, with an economy in decline where the great unknown is how Germany
will rebuild its economy and France its political system.
In Chile, we can start with a great pact, where a harakiri by the political class gives way to an electoral system that rewards a policy of agreements, that retires many of them, but that prioritizes the good government of the country. We must acknowledge that those who bet that the improvement of parliamentary representation was going to make the political class more popular were wrong. The country needs a model that learns from its own mistakes. There is no book such as the one mentioned in the first paragraph of this article, but today is a good day to start writing it.
Sucuriú will consolidate ARAUCO as a global leader in the pulp industry.
US$ 4.6 billion and an annual production capacity of 3.5 million tons of bleached pulp. These are the figures for the ambitious project that the forestry subsidiary is developing in the state of Mato Grosso do Sul.
Sucuriú is not only a milestone in ARAUCO's growth, it also represents a significant contribution to the development of the region, generating more than 14,000 jobs, boosting local businesses and attracting new investments.
ARAUCO's presence in Brazil dates back more than two decades, when it began selling panels in that important market. Over the years, the company added timber business facilities and forestry operations, established alliances with leading companies in the industry, and expanded its production lines.
Latin America's largest country represents undeniable medium- and long-term opportunities for ARAUCO, a Chilean company with a global presence. In this scenario, development options were carefully assessed, among which boosting pulp production was the logical growth path. The idea took visible shape in 2022, with the signing of an agreement between ARAUCO and the government of the state of Mato Grosso do Sul.
After that, ARAUCO obtained environmental licenses and began negotiations with the main vendors to materialize the Sucuriú project, with its construction being approved by ARAUCO's board of directors last September. This will be the largest investment in the company's history, with amounts exceeding US$4.6 billion and an annual production capacity of 3.5 million tons of bleached pulp.
ARAUCO's CEO, Cristián Infante, highlights the smoothness of the process and the good disposition of the authorities of the state of Mato Grosso, where the company has been present since 2009 through its forestry operation. “Although there are very high requirements in terms of permits and environmental standards, there is an atmosphere of mutual trust and collaboration, which favors progress at a good pace. In addition, we have held multiple public hearings and have worked together with the community to ensure the social legitimacy of the project,” he adds.
The plant will be located on the banks of the Sucuriú river, 50 kilometers from the city of Inocência. Earthworks are currently underway and construction is expected to begin in the middle of next year. “However, there are many other fronts that keep us busy, such as the logistics strategy, the detailed engineering of the construction work, attracting the talent we will need to operate the factory, the link with the surrounding, the planting and care of the forests in order to have fiber, among many other challenges,” says Infante.
Carlos Altimiras, president of ARAUCO Brazil, complements this point, pointing out that Sucuriú is the largest single-stage pulp production addition in the world and represents the entry of the company's pulp division in Brazil. He adds that “it is a complex project, involving our forestry operation, a mill, a logistics structure, in addition to issues related to the development and mitigation of economic, social and environmental impacts.”
Sucuriú is the largest single-stage pulp production addition in the world and represents the entry of the company's pulp division in Brazil.
The complex will have a gasification plant that will produce biofuel for the operation, a chemical recovery boiler - the largest in the world in terms of capacity in the pulp and paper sector - and another that will generate energy from the reuse of biomass and other elements resulting from the pulp manufacturing process. Surplus energy will be supplied to the national system.
This is directly related to the sustainability culture that is reflected in every ARAUCO initiative in any part of the world. “Our purpose is to contribute to people and the planet, which is why we have solid ESG policies and actions, and the Sucuriú project reflects these principles exemplarily,” says Altimiras. “Our commitment to preservation also includes continuous monitoring of local biodiversity, where we identify species of native flora and fauna in the region and map priority areas for conservation. Our forestry management is a model of balance between economic development and environmental protection,” he emphasizes.
On the social front, meetings are held periodically with the community to learn about their customs, values, and expectations, introduce the project to them, involve the leaders, and work together to ensure that the region grows in harmony. Together with the mayor's office and an international firm specializing in sustainable development, the company is conducting a study that will define the Sucuriú Project's Strategic Socio-environmental Plan. The plan considers actions and investments in the areas of employment and income, health, education, social services, public safety, transportation, sanitation, housing, land use planning, and environmental conservation.
According to the planning, it is estimated that the plant could start operating by the end of 2027. That moment will not only represent a milestone in the history of ARAUCO and its presence in Brazil, but will also reinforce the positive impact
of the project in the region, reflected in the generation of employment and income for families, the boost to local businesses, the attraction of new investments and tax revenues, among other benefits.
From the company's perspective, Cristián Infante says that “we are convinced that this project will consolidate ARAUCO's position as a global leader in the pulp industry, with a mill that will operate at the highest standards. For a global player like us, it also represents an important opportunity for growth, with a long-term perspective and always seeking greater competitiveness in the global pulp markets, where we want to continue to be a relevant player. We are proud to be able to continue growing in Latin America,” says Arauco's CEO.
SUCURIú
PLANT:
Mato
4,6 BILLION
Dollars of investment.
6,000
Employees in the operation.
Workers during peak of construction.
3.5
Million tons of pulp per year.
1,825,228
14,000 M2
Of constructed area.
VALMET: A WORLD-CLASS SUPPLIER
The Finnish company Valmet, a world leader in the development of technologies, automation and services for the pulp, paper and energy sectors, was chosen as the supplier of the main equipment. Carlos Altimiras, president of ARAUCO Brazil, explains that this choice “reflects the company's interest in having partners who share the same vision regarding innovation and sustainable practices.”
Valmet submitted a solution that includes state-of-the-art developments for the sector, aligned with the demands of the project. “The partnership further reinforces the synergy with ARAUCO's values, given that this supplier has differentials such as the quality and safety of the facilities and equipment, innovation and the application of technology consolidated in the international market,” he says. Added to this is the availability and reliability of
the machines involved, which represents a significant reduction in the impact on the entire operating chain.
Valmet will equip the future plant with an integrated production line of the highest level and automated systems designed to maximize energy efficiency, reduce operating costs, optimize performance and minimize waste generation and greenhouse gas emissions, in line with the most demanding environmental standards in force around the world.
According to the Institute of Directors, the Company stands out for its longterm view, constant improvements in its reporting, its communications management and its ethical leadership.
empresas copec:
For the sixth consecutive year, the Company received “La Voz del Mercado” (Voice of the Market) award for Best Corporate Governance Practices, a very relevant distinction, as it represents the perception of directors, investors, intermediaries and analysts, among other professionals and experts, on the most traded companies on the Stock Exchange.
“Two business areas: natural resources and energy. One common culture.” This is how Eduardo Navarro, CEO of Empresas Copec, defined the company at Investor Day 2024. “This group has a particular way of doing business, with a long-term vision, strong corporate governance and policies that strengthen a culture that promotes values such as excellence, innovation, transparency and integrity”, says the executive.
And this is how the market perceives it, rewarding Empresas Copec for the sixth consecutive year.
“Our roadmap is based on a longterm vision and on our purpose: To shape the world for future generations,” said Eduadro Navarro.
La Voz del Mercado analyzes IPSA companies under five corporate governance pillars: Business Strategy, Control Environment, Transparency, Fair and Equal Treatment of Shareholders and Sustainability Management. They are evaluated by 390 professionals, including directors, managers, investors, capital market analysts, risk rating agencies and academics. Therefore, as it is said, the distinction is awarded by the same ecosystem in which the companies are embedded.
For Fadua Gajardo, executive director of the Chilean Institute of Directors, the organization that presents the award together with EY and the Santiago Stock Exchange, Empresas Copec stands out mainly for the culture shared among its subsidiaries, the transformation of its business model based on a long-term view, constant improvements in its reporting, its communications management and its ethical leadership.
“This recognition has to do with work that is not done from one day to the next, but is a constant task that spreads throughout the organization, beyond the boards of directors or the executive team,” explains Gajardo. And adds: “Today it is impossible to do business thinking that corporate governance is the board, but it should be conceived as the way in which things are done, having clear ethics and values regarding the work of a company, and at Empresas Copec we see this ethical leadership promoted from its directors and senior executives.”
According to Gajardo, Empresas Copec also stands out for the way in which it has managed to effectively communicate how its culture drives its business. In addition, she stresses that the Group has managed to anticipate changes in the industries, considering long-term sustainability and profitability criteria, one of the pillars of its strategy: “The transformation they have carried out may sound logical, for example, changing the focus towards promoting the energy transition, but it was not obvious at the time. It's a great job they have done, not only improving perception indexes, but also reading what the market expects from them.”
IN THE PHOTO: Fadua Gajardo Executive director of the Chilean Institute of Directors.
“This recognition has to do with work that not done overnight, but on a permanent basis”, explains Fadua Gajardo.
ESG at the core of decisions
According to Eduardo Navarro, “Empresas Copec thinks in decades, always in the long term, understanding that a company is only sustainable if ESG issues are at the center of all its decisions and embedded in the business.”
Along these lines, environmental, social and governance issues are addressed strategically in the parent company and all its subsidiaries.
The humanistic approach of this purpose has become a compass that guides the Company's business, ensuring that every decision taken considers the well-being of tomorrow's society.
“It is noticeable that there is a culture with which the collaborators connect and that they have values that are coherent with their purpose, and the market has been able to read that,” says Gajardo. And adds: “Finally, investors see a real concern in matters such as sustainability, and it can be seen that behind this there is a whole team and not just one area focused on the subject."
In addition, timely and transparent communication with all stakeholders is a priority and an area in which the company is constantly seeking to innovate, opening up to new media and channels.
On the challenges that companies face in this area, Navarro states: “Historically, at least in our country, companies have communicated what we do and how we do it. However, this year we took a very important step in communicating what we believe in as a company.”
This is reflected in the redefinition and recent publication of its corporate purpose: “To shape the world for future generations,” and the launch of its associated campaign #NotMoreShortTermism, which has generated a lot of conversation around this topic.
This study assesses IPSA companies under five pillars of corporate governance.
Consecutive year. Empresas Copec received the award for Best Practices in Corporate Governance.
Professionals assess the company, including directors, managers, investors, capital market analysts, risk rating agencies and academics.
ESG issues are addressed strategically in the parent company and all its subsidiaries. In addition, timely and transparent communication with all stakeholders is a priority.
For Navarro, the holding company has always had an ethical view of how to do things, something proper to the controlling economic group and which the board of directors has historically promoted. He further comments that the Company's organizational culture is also based on the people who are part of it: “Integrity is fundamental and, as the parent company, we have the role of strengthening our culture, replicating policies in our subsidiaries and raising issues, for example, in their boards
of directors. These values also attract people with the same vocation and perspective, so those who work with us share our principles.”
The award ceremony for La Voz del Mercado 2024 was held at the Santiago Stock Exchange building at the end of November. There, in addition to presenting the results of the study, Empresas Copec, Banco de Chile and Banco Bci were also acknowledged.
After receiving the award, Eduardo Navarro expressed his gratitude for the distinction, congratulated the other winning companies and commented: “At Empresas Copec we understand
the role we play in the country's development. For this reason, our roadmap is based on a long-term vision and on our purpose: to shape the world for future generations. In this context, we are always working to raise our standards in different areas and, of course, in one as important as our corporate governance, which, among other things, helps to strengthen trust in the corporate world, something so essential for creating value.”
The acquisition of Gasib will enable Abastible to position itself as one of the largest liquified gas operators in the world. from
abastible:
With the agreement to acquire CEPSA's liquified gas operation in Iberian lands, the company will consolidate its leadership and presence in different countries, and will also promote new businesses in the face of the energy transition.
Internationalization, growth and energy transition are some of the key concepts behind the investment that Abastible agreed to make this year to acquire Gasib, Compañía Española de Petróleos’ (CEPSA) liquified gas subsidiary in Spain and Portugal.
After several months of negotiations, both parties agreed to the purchase for a value of €275 million, which will allow Empresas Copec's subsidiary to break into the European market and position itself as one of the largest liquified gas operators in the world.
According to Abastible's chief executive officer, Joaquín Cruz, this transaction is part of a strategy that seeks to continue growing and diversifying both geographically and in terms of business, in an activity in which there is already prior knowledge and a good track record and operational experience at a regional level. First, in 2011, with the entry
“Europe will allow us to get involved in everything related to the energy transition and makes a good match with our reality and needs,” says Joaquín Cruz.
into Colombian Inversiones del Nordeste, today Colgas, and, then, in 2016, by entering Peru and Ecuador, after purchasing the operations of this business from Repsol.
“We have an excellent experience on how it has been operating in Colombia, Peru and Ecuador.
In these years we have made relevant changes, hired talented people and developed a lot of competencies. We are well prepared in systems, equipment and people. Based on this, we are looking to the future and have decided to continue growing,” the executive says.
Liquified gas plays an important role in the path towards decarbonization, since it offers energy solutions that allow both companies and individuals to transition from traditional fossil energy sources, such as coal or oil, to renewable systems in a gradual and accessible way. “It will be many decades before the consumption of liquified gas begins to decrease, therefore, we are a clean energy and a key player in the energy transition,” explains the executive.
In this regard, Abastible's future entrance into the European market opens up new business opportunities in different areas. A relevant topic is the development of energy solutions,
positioned as an important trend in the industry, towards its customers, where the company seeks to position its new subsidiary, AbastibleTec, which offers energy efficiency and sustainability services.
In addition, this will bring along the development of new technologies, tools and the automation of new processes, among others.
“Europe will allow us to get involved in everything related to the energy transition and makes a good match with our reality and needs,” comments Cruz.
Along these lines, Abastible's future entry into the European market is expected to open up new business opportunities in different areas, such as the development of energy solutions, where AbastibleTec seeks to position itself in the development of new technologies and process automation, among other businesses.
Regarding the negotiation process with CEPSA, Joaquín Cruz highlights the collaborative work achieved between Abastible's financial, legal and commercial team and professionals from Empresas Copec's Strategy and Development and Finance departments, who placed their experience at the service of the subsidiary in order to reach a good agreement and structure the financing appropriately. And so it was.
“A very powerful team was placed together, which is super virtuous for the Group, because we reach a good agreement, we carry out a good analysis, we act with trust and we generate knowledge, experience and talent,” the executive adds.
During the second half of 2024, the transaction was assessed by the competent authorities. After that, in December, the approvals were completed, which led to the closing of the transaction. Abastible is currently in the process of taking over the management of the business.
According to the agreement, the Empresas Copec subsidiary will keep the CEPSA brand in the commercialization of liquified gas products and services in the Iberian Peninsula, as well as its executive team to provide “continuity to the management and administration of this company,” explains Abastible's CEO.
The integration of Gasib means for the Chilean company the acquisition of a business with 3.5 million customers in bottled gas and 17,000 in bulk, and a staff of at least
200 employees. In addition, in terms of infrastructure, the company has six storage and filling plants, two storage plants and more than 200 third-party warehouses, which together allow it to supply the entire Iberian market, the Canary Islands, Ceuta and Melilla, with sales close to 240,000 tons per year.
In the same way, the aim is to align Abastible's Corporate Purpose, which is “Empowering the Entrepreneurial Spirit,” with this new company, as the goal is to continue generating value for SMEs and inspiring others in all the territories and communities where it operates.
Abastible's future entrance into the European market is expected to open new business opportunities in different areas, such as the development of energy solutions.
Months of negotiations that ended in an acquisition agreement for a total of:
Million euros. 2011 2016 2024
17,000 +200 6 275
3,5 MILLION
Acquisition of Norgas (Colombia).
Acquisition of Duragas (Ecuador) and Solgas (Peru).
Acquisition of Gasib España and Gasib Portugal.
Clients of bottled gas.
Clients of bulk gas. Collaborators.
Today, Blue Express stands out for offering the largest network of pick-up and drop-off points in Chile, reaching 99.9% of homes in the country.
At the end of 2022, Copec closed the acquisition of Blue Express. Two years later, the e-commerce logistics company has recorded a 100% increase in package service orders and a 60% rise in revenues.
This growth has been strongly leveraged on the network of service stations, and also aligned with the purpose of the subsidiary Copec: to promote the development and mobility of people, companies and the country.
It has been two years since Blue Express was acquired for Ch$ 221 billion by the subsidiary Copec. It has undoubtedly been a fruitful time for the e-commerce logistics company, which today shows more than satisfactory results.
During this period, Blue Express has registered a 100% growth in package service orders, from 20 million in 2022 to 41 million in 2024. Furthermore, the processing capacity at the centers has doubled: while in 2022 it was 250,000 packages per day, today the
figure reaches 500,000. Meanwhile, revenues have increased by 60% in these two years, from US$ 108 million to US$ 162 million.
What is behind this success? Olivier Paccot, CEO at Blue Express since 2019, explains that, from the arrival of Copec, the company has undergone a significant transformation in its infrastructure and services, which is linked, among others, to the network of service stations: “Integration with service stations has been key to expanding our distribution network, offering our customers more than 680 additional pick-up points throughout Chile, which are available 24 hours a day.” According to the executive, this provides the convenience of sending and receiving packages at any time, in accessible, safe locations, with parking and other services, which results in a better customer experience.
Bringing solutions to every corner of the country
The integration between last-mile logistics companies and service stations is part of a trend that is well established in Europe, Asia and the United States. This synergy began to gain momentum after the Covid-19 pandemic, when the enormous growth of online shopping uncovered the need for more agile logistics networks that are closer to the consumer. In this context, gas stations emerged as ideal locations for the delivery, collection and temporary storage of packages, allowing companies to optimize distribution costs, reduce delivery times and offer convenience to customers.
But, for the Copec subsidiary, the business not only made sense from this point of view, but also because it connects with the purpose and strategy of Chile's fuel and energy market leader. “The acquisition of Blue Express was very consistent with our
purpose, which seeks to enhance the development and mobility of people, companies and the country, generating new solutions for each of our users in all the needs of their daily lives,” explains Arturo Natho, Copec's CEO.
The company is aware that the world is going through an energy transition. This, together with the company's long-term vision and its spirit of contributing to the country, prompted the decision to explore joint work. “This strategy allows us to integrate our traditional business with new developments, particularly in the areas of New Energies, New Mobility and New Convenience, aligning ourselves with both the current and future needs of Chileans. We are constantly looking for opportunities to contribute to the different needs of our customers and, in this context, Blue Express represents an innovative solution that responds to the growing demand for convenience in logistics and parcel distribution. For some
years now, we have decided to expand our areas of operation and participate in other businesses where our experience and focus on the customer, as well as our extensive network of service stations, with 24/7 operation throughout the country, can contribute and be differentiating elements,” says Arturo Natho.
In turn, Olivier Paccot points out that both organizations share a focus on making people's lives easier, connecting communities and providing effective logistics solutions in every corner of the country. “What really makes the difference is Copec's long-term vision, always focused on building sustainable
solutions for a better Chile. Thanks to its infrastructure, its ability to raise ambitious goals and its strategic vision, we can look forward with confidence, creating solutions that not only respond to current needs, but also position us as industry leaders in the future,” Paccot adds.
This period has borne many benefits. Today, Blue Express stands out for offering the largest network of pick-up and drop-off points in Chile, reaching 99.9% of homes in the country. In addition, customers can self-manage their shipments at Copec stations, which to date is a unique service in Chile and is driven by the expansion of delivery points, which went from 1,230 in 2022 to more than 3,000 in 2024, resulting in having a presence in all of Chile's municipalities. “However, our differential value goes far beyond last-mile delivery: Blue Express is a comprehensive logistics solution. We offer a complete set of services, from cargo reception to storage, preparation and delivery of e-commerce orders
throughout Chile within 24 hours. In addition, we facilitate the processing of returns and exchanges through our returns system with Reversso,” says Paccot. The latter is a Chilean startup that automates returns and exchanges in e-commerce.
One of the main challenges they faced after joining Copec was to include a new customer segment: individuals, since, until then, the organization had focused on companies and large retailers. Another challenge was to approach other more fragmented niches, such as SMEs, which have also been part of the accelerated growth of e-commerce. “This acquisition has been especially beneficial for this segment, enabling them to access distribution and logistics services that enhance their activity, thus contributing to the development of the entrepreneurial ecosystem in Chile,” says Arturo Natho. Results confirm this: Blue Express has increased the number of its SME clients by five times in the last 24 months.
Copec and Blue Express share a focus on making people's lives easier, connecting communities and providing effective logistics solutions in every corner of the country.
Another of the specific achievements in these two years has been to maintain a great capacity to respond to demand. To this end, the company has invested in new sorting machines that handle up to 500,000 packages a day, from Putre to Punta Arenas. “This increase in capacity has had a direct impact on the speed of our deliveries. During the last Cyber event, for example, we managed to deliver 90% of orders the next day throughout Chile. These figures highlight our commitment to efficiency and world-class logistics, backed by Copec's strategic support,” says Olivier Paccot. The number of packages mobilized at service stations - a service that only came into operation in the second half of 2024reached 200,000 as of October.
Technological innovation has also played a key role in strengthening the organization's market position. Recently, for example, they launched a solution that allows customers to send packages using pre-labeled bags, which simplifies the shipping process and makes it much more streamlined. In addition, they have expanded the fulfillment service, which is the process that encompasses all the activities necessary to fulfill an order, from the time an order is placed by a customer until it is received. This has been in high demand, giving companies the option of efficiently managing their inventories, warehousing and shipping, all under optimized and customizable logistics. In addition, it has been expanding the network of smart lockers, especially in Copec service stations, which gives customers the possibility of managing their shipments autonomously and conveniently.
-
Given the continued expansion of e-commerce, Paccot estimates that they will keep growing between 10% and 20% per year. Likewise, in the medium and long term, they have set demanding goals to consolidate and expand their services, such as, for example, reaching 30,000 daily deliveries in the individuals segment by 2025, as well as doubling their operational capacity to manage up to one million packages per day in the medium term and, thus, better respond to growing demand. “We also want to be leaders in the out-of-home delivery model, with the goal that 20% of our deliveries will be made at alternative points, such as lockers, Blue Express Points and Copec stations, a strategy that not only facilitates the customer experience, but also contributes to reducing the carbon footprint and promoting more sustainable practices,” adds the executive.
BLUE ExPRESS
The goals in figures are linked to the desire to support Chileans in their own projects and aspirations. “Our dream at Blue Express is to boost trade throughout Chile, giving people, even those in more remote locations, such as Villa Cerro Castillo, the opportunity to send their products to any corner of the country. We want artisans, entrepreneurs and small businesses to be able to connect with a wider market, overcoming geographical and logistical barriers. This dream aligns perfectly with Copec's purpose,” says Paccot. Arturo Natho agrees, noting that logistics, especially associated with e-commerce, is an industry in full development, which demands innovation and technology to continue growing and improving its level of service: “At Copec we are committed to continue moving in this direction, focused on consolidating our role in the logistics sector and offering a quality experience to those who rely on us every day.”
Blue Express was acquired by Empresas Copec, through its subsidiary Copec S.A. It has certainly been a fruitful period for the e-commerce logistics company.
41 MILLION
2024
With sustainability at the core of its business, Empresas Copec and its subsidiaries are promoting this type of financing.
empresas copec and subsidiaries:
One of the greatest risks facing humanity in all latitudes of the world is climate change. Faced with this reality, sustainable finance is consolidating as an alternative to help protect the environment and offset global warming.
Sustainable and green finance are categories of financial instruments that are playing a key role in promoting sustainability strategy and goals.
The use of these resources to finance mitigation measures, new clean technologies and mechanisms to reduce the carbon footprint, among other initiatives, allow governments and companies to face the climate crisis and move towards a more sustainable world.
Empresas Copec and its subsidiaries are promoting these types of financing.
An example of it is that in October the Company carried out its first successful placement of green bonds for a total of UF 4 million (about US$ 163 million). The operation had the lowest
corporate spread of the year up to that time, reflecting the strong support from investors.
This issuance will strengthen the company's sustainability strategy and goals through investments in renewable energy and energy efficiency projects. Green bonds, as a key tool, will allow channeling resources towards assets that support the path towards sustainable development of the Company and its subsidiaries, promoting the reduction of carbon emissions and increasing its resilience capacity against climate change.
This milestone takes place in a time when Latin America is becoming a dynamic and growing market for sustainable financing, thanks to the efforts of multiple players.
According to data compiled by BNP Paribas, the global volume of sustainable bond placements stands at US$ 764.3 billion so far in 2024, 20% above the total for 2023.
In the backdrop of these regional figures, Chile stands out as one of the leading countries in Latin America, with a total ESG placement volume of US$ 64.9 billion, accounting for 29% of these operations in the region. Slightly behind are Mexico with 28%, and then Brazil with a 25% share, according to figures from the French bank.
In fact, the three countries together have accounted for some 80% to 90% of the placements of this type in Latin America in recent years, according to a report by S&P Global Ratings published in 2024.
When looking at the type of sustainable bonds issued in Latin America, LarrainVial's figures on the subject show that almost 70% of the sustainable bonds issued as of the first half of 2024 are green.
beginning of the road
The roadmap that led Chile to become one of the leading players in sustainable financing and to rank first in Latin America began several years ago.
The country was a pioneer in issuing a green sovereign bond with the support of the Inter-American Development Bank (IDB) and, in 2022, it was one of the first countries in the world to launch a thematic bond linked to a sustainability objective.
At government level there is a strong bet on the so-called thematic bonds (green, social and linked to sustainability), which at the end of 2023 represented 36% of the national public debt. The Finance Ministry has assured that this percentage is among
the highest in the world and the challenge is to reach 50% in this type of instruments by 2026.
For Empresas Copec, the opportunity to participate in the green bond market was a natural process. The Company’s CFO, Rodrigo Huidobro, emphazises that “sustainability is inherent to the business philosophy and to the areas of our company. Sustainability objectives are indistinguishable from those of the business.”
Why? Huidobro explains that when they seek to grow in the forestry area, this translates into larger plantations that help absorb more carbon dioxide. Added to this are the plans being developed by Copec and Abastible, subsidiaries that are in the process of transformation in the face of the energy transition. “Sustainability and green initiatives are inherent and inseparable, they are at the core
“Sustainable financing represents a relevant strategic tool for companies seeking to generate long-term value," states Huidobro.
of Empresas Copec's business. Therefore, everything that has to do with financing and financial instruments of a green or sustainable nature are very appropriate for this Company,” stresses the executive.
Huidobro also explains that with the first green bond issued by Empresas Copec, the funds were transferred to the subsidiaries as debt to promote an extensive portfolio of projects and initiatives.
Regarding investors and the support for the placement, he says that “it validates us as a company that does things well, that monitors its projects and fulfills its commitments. In fact, the operation is carried out under a sustainable financing framework, where investment, governance and project approval criteria are established, all validated by an external party, which in this case was Sustainable Fitch."
At the subsidiary level, ARAUCO was one
ARAUCO’S CFO, Gianfranco Truffello, points out that the heart of the forestry business is renewable by nature, as it is present in said industry. Therefore, the leap into green debt issuance was a logical step.
ARAUCO was one of the first Chilean companies to enter the international debt market in the early 1990s.
of the pioneers at the local level in issuing sustainable bonds and the first forestry firm to do so in Latin America. From 2019 to date it has placed seven series of bonds in four placements.
Copec, meanwhile, subscribed a US$200 million syndicated loan in 2023 to promote renewable energy and energy transformation initiatives.
bonds, as a key tool, will allow channeling resources towards assets that support the path towards sustainable development of the Company and its subsidiaries.
Through these placements, the forestry subsidiary committed to invest in and promote tree plantations, foster initiatives to protect biodiversity, boost circular economy and develop products from renewable sources, among others.
In addition, with the syndicated loan granted to Copec, emblematic projects have been carried out in the subsidiary's business transformation process, such as the acquisition of the Granja Solar project in the north of the country, the
The forestry company's participation in sustainable bonds has resulted in a first issuance in October 2019, through two series for US$500 million in the North American market. Then, a second placement took place in April 2023, with two series for a total of UF 7 million in the Chilean market. And the last operation was in November this year, with two series for a total of UF 10 million in the local market.
implementation of all the lines of electric chargers at service stations and the construction of SMM plants through Flux Solar.
Copec’s CFO, Juan Diuana, emphasizes that years ago the company “began to diversify its business, focusing on renewable energies, new convenience formats and new mobility. We have several projects aimed at energy transition that can obtain green financing. Therefore, it was an obvious step and a way to reinforce it.”
Diuana adds that “in view of the long-term transformation of our businesses, accompanying this strategic development plan with green financing alternatives is very relevant. The financial world is moving in this direction, which is an advantage.”
In October, Empresas Copec carried out its first and successful placement of green bonds. The transaction recorded the lowest corporate spread of the year, to date, reflecting the strong support from investors.
Volume of global green bond placements.
Total volume of ESG placements.
Over the total for last year.
Of the sustainable bonds issued are green.
of these transactions in the region.
In an opinion column by Raimundo Alcalde, head of ESG at LarrainVial Asset Management, he noted that “investors are increasingly interested in environmental, social and governance factors when making investment decisions. By opting for green bonds, they have the assurance that their money will contribute to a positive environmental impact, in addition to supporting companies on their path towards sustainability."
For Juan Diuana, “companies concerned about ESG matters tend to have better results in the long term. There is a greater correlation, as these companies achieve a better relationship with the communities where they operate and with all their stakeholders, which reduces surprises in projects and, therefore, the volatility of future results,” he says.
Diuana adds that “there is definitely a long way to go yet, where the financial market must push companies to take action.”
Huidobro says that “a company committed to the environment and sustainability builds a good reputation with investors and communities."
According to estimates by S&P Global Ratings, sustainable bonds could increase to more than 30% of Latin America's total debt issuance this year, “which would show resilience to fluctuations in the bond market over the past three years,” the rating agency explains in a report.
In fact, Huidobro points out that “green financing markets are becoming broader, deeper and with greater liquidity, with access to increasingly varied investors and stricter international certifications."
For Truffello, one of the biggest challenges in green financing is to avoid “greenwashing”, which are strategies that some companies use to present themselves and their products as environmentally friendly, when in fact they are not. For this reason, he specifies that “companies have to be green, regardless of the instrument they issue. The awareness of financing sustainable companies is becoming stronger and stronger."
As an example, he explains that ARAUCO, beyond being a carbon-neutral company, is currently concentrating its efforts on having more energyefficient plants, as well as on the sustainable use of water resources and on its social impact in the communities where it is present, with the aim of supporting their growth.
Huidobro concludes that “issuing green or sustainable bonds allows companies to finance projects that, in addition to generating financial returns, contribute to sustainability. Also, it can facilitate access to new sources of capital and reinforce their commitment to ESG values, which favors their competitiveness and reputation in the global market. Sustainable financing represents a relevant strategic tool for companies seeking to generate long-term value.”
LEMU NGE:
Just four days and 14 hours after its launch, ARAUCO's Lemu nanosatellite, Lemu Nge, captured and sent back to Earth its first near-perfect image. This is considered unusually fast as similar missions can take months, or even years, to reach this milestone.
The initial capture took place on August 21, 2024 at 11:39:27 UTC, with the satellite orbiting at 600 km altitude in a vineyard area north of Lisbon, Portugal, covering 23 km wide and 28 km high.
Lemu Nge is the world's first satellite designed exclusively to observe biodiversity. Upon completion of its Launch and Early Operations Phase (LEOP), its initial mission will be focused on Chile, due to the large satellite data gap for this country and for the southern hemisphere in general. Observation areas will include Ramsar-designated Andean wetlands, macroalgae forests, key plant species - especially trees - and invasive plant species.
Remedia GT's commitment is very clear: to set and develop a new standard in addressing environmental challenges, with a commitment to contribute to a more sustainable future for all.
Currently, there are more than 10,000 sites with a potential presence of contaminants that have no remediation plan and could be reintegrated into the city with the knowledge and experience of Las Salinas' new subsidiary:
Remedia Green Tech, or Remedia GT, is launching a differentiating value proposition in Chile, by offering a proven alternative for the transformation of environmental liabilities into assets, generating a positive action with a triple impact: social, economic and environmental.
Thanks to an outstanding professional team and the knowledge gained in the remediation process that is underway in the Las Salinas site in Viña del Mar, coupled with the best international experiences in urban environmental regeneration, today Remedia GT has an offer that allows it to address the challenge of recovering and transforming degraded land into development opportunities, with a direct contribution to people and their environment.
Las Salinas remediation experience has been key to Remedia GT's entire value offer, as it is a land that has involved a deep learning process on the most demanding remediation standards and techniques worldwide. “Chile does not yet have a primary environmental quality standard for soils and there
are projects that are moving in that direction. Therefore, we took on the challenge and made the effort to study the different environmental regulations in force in the countries that have the best environmental standards on remediation. Based on this work, we decided to set ourselves the highest requirements and, from there, complete a project of excellence, which is the one we are implementing to recover the soils in Viña del Mar and make them available for different uses that contribute to the comprehensive development of the city,” says Ricardo Labarca, general manager of Las Salinas and Remedia GT.
In this way, Remedia GT allows to collaborate in responding to one of the pending tasks in Chile in terms of environmental regeneration, because according to the Environmental Ministry's record of sites with potential presence of pollutants, there are more than 10 thousand sites that are in this situation and for which there is no recovery plan.
The issue is even more critical, since the deficit of soils for different uses throughout the country is growing every year. “This is a profound change, because today we have the scientific knowledge and the necessary and proven technology to provide new opportunities to lands that have had an industrial use or that are contaminated. There is no reason for a degraded site to remain in oblivion, as a disused area or transformed into a landfill. The basic commitment is to take responsibility for cleaning it up, understanding the opportunities that arise when disposing of it for uses that contribute to comprehensive development,” Labarca added.
This focus is in line with Empresas Copec's new corporate purpose: “To shape the world for future generations,” promoting sustainable investments with a long-term vision. “When we talk about circular economy, there is nothing more circular than integrating the use of soils so that they become part of this economy,” says the general manager.
Las Salinas remediation experience has been key to Remedia GT's entire value offer, as it is a land that has involved a deep learning process on the most demanding remediation standards and techniques worldwide.
Remedia Green Tech's work focuses on three key areas: remediation and conversion of land with urban and real estate potential; the application of preventive and reactive technologies in industrial sites; and innovation in the remediation of mining liabilities in compliance with ESG standards.
In terms of remediation and conversion of land with real estate potential, among others, environmental, legal and future use factors are included to contribute to sustainable urban development.
For industrial projects, Remedia Green Tech accompanies companies from the design phase of the projects in order to guarantee due diligence in prevention and reaction for remediation, ensuring that companies comply with the highest standards of environmental responsibility.
An outstanding example of remediation and urban development is the Confluence project in Lyon, France, which has transformed a declining industrial area into a vibrant, sustainable and dynamic district.
Located at the confluence of the Saône and Rhône rivers, the project involved the remediation of contaminated land and its conversion into a space that combines modern housing, commercial areas, offices and public spaces. This development prioritized sustainability through the use of green technologies, the integration
of renewable energy and the creation of a green infrastructure that fosters biodiversity. In addition, Confluence has revitalized the local economy and improved the quality of life for citizens by providing an accessible, inclusive and attractive environment for residents and visitors. The transformation of this underutilized area into a model of sustainable urbanism has set a global precedent for urban regeneration projects with positive impact.
As for innovation in the remediation of mining liabilities, Remedia GT transforms liabilities into relevant assets, providing support in both operational compensation and compliance with environmental, social and management targets.
Remedia GT's commitment is very clear: to set and develop a new standard in addressing environmental challenges, with a commitment to contribute to a more sustainable future for all.
Remedia Green Tech, leads in the country a differentiating value offer, proposing the reconversion of environmental liabilities into assets.
Recovering and transforming degraded land into development opportunities, with a direct contribution to people and their environment, creating a triple impact:
10,000
Sites with potential presence of contaminants that have no recovery plan.
Social, economic and environmental.
Copec and Orizon are part of the Strategic Committee in charge of designing the Business Action Plan on Biodiversity, promoted by the Environment Ministry and Acción Empresas.
empresas copec subsidiaries:
In a global context, where the climate crisis and biodiversity loss are urgent challenges, the Company, through its subsidiaries, is promoting several initiatives to restore the nature that has been lost and protect what is at risk. Always with an eye on future generations.
The recent 16th United Nations Conference on Biodiversity, COP16, held in Cali, Colombia, between October 21 and November 1, brought together more than 190 countries under the slogan “Peace with Nature”. The main objective was to move towards the global goals of the Global Biodiversity Framework, which seeks to preserve at least 30% of terrestrial and marine ecosystems by 2030, a challenge in which the recovery and conservation of endangered species are critical factors.
The Chilean delegation, led by the Environment Minister, Maisa Rojas, introduced its 35 National
Targets aligned to the Global Framework. “Chile has made significant efforts to integrate biodiversity into its climate policies. This is a global challenge and we must address both problems together,” she said.
The country's highest environmental authority added: “Climate change and biodiversity loss are two sides of the same coin, because forests are not only the habitat of many species, but they are also huge carbon sinks. Therefore, they play a fundamental role in reversing the climate crisis.”
The subsidiaries ARAUCO and Copec were part of the global event, sharing their strategies and actions for nature with leaders and experts.
Juan Anzieta, ARAUCO's Forestry and Sustainability Manager, who led the subsidiary's participation in the conference, emphasizes that, just as countries showed their updated National Biodiversity Strategies and Plans, “companies also showed their progress and commitments, goals and indicators for transforming their business, which is very important for moving forward on the path of making a positive contribution to nature."
Along the same lines, Camila Valenzuela, Copec's Director of Sustainability, states that the company's participation in COP16 “was an opportunity to see what other countries and other companies are doing, and to get the vision of the environmental authorities of Chile and the world.”
The forestry subsidiary has integrated biodiversity into the heart of its business strategy. Its Biodiversity and Ecosystem Services Policy establishes clear principles to prevent, mitigate and restore environmental impacts, balancing sustainable forest production with the protection of natural heritage. This preventive approach not only reduces risks, but also
ensures a positive impact on local communities and the environment.
With forest assets of more than 1.7 million hectares in South America, the subsidiary leads conservation initiatives covering thousands of hectares of native forest and protection areas, including a restoration plan that seeks to recover more than 25,000 hectares of native ecosystems in Chile and Argentina.
During its participation in COP16, ARAUCO introduced its commitments to nature and participated in 10 panels, giving an account of the actions it is developing to protect biodiversity and endangered species in Latin America.
“Protecting nature is not only an ethical imperative. Its care is of direct benefit to companies that work with biological assets. Our productivity and sustainability depend on it,” says Juan Anzieta.
-
Ecological restoration: a tangible goal
Pablo Ramírez de Arellano, senior researcher for Ecosystem Management at ARAUCO, explains that in a world where the window of opportunity to generate change is narrowing, it is important to prioritize conservation and restoration actions in sites that generate the greatest socio-environmental profitability.
The forestry subsidiary has integrated biodiversity at the heart of its business strategy.
“Studies indicate that restoring 15% of high-priority degraded areas can prevent 60% of extinctions and capture 30% of the CO₂ accumulated since the industrial revolution. More than
the surface area, what is relevant is the quality of that surface area,” he stresses.
For this reason, ARAUCO's strategy focuses on critical areas that provide habitats for threatened species and strengthen ecosystem services, such as water regulation, soil conservation and carbon storage.
“We are committed to not replace native forests and to promote their conservation, which already involves approximately 500 thousand hectares of conservation in South America, and we have a restoration plan for more than 25 thousand hectares in high-priority sites, of which 10 thousand are already in process. Ecological restoration will enable us to preserve more than 30% of our assets, in line with global goals,” adds Ramírez de Arellano.
Science, technology and academia at the service of nature
To ensure that its efforts have a long-term impact, ARAUCO has been committed to research from very early on, through the Bioforest research and development center, from which a significant part of the protocols related to biodiversity and ecosystem services have been developed.
“Having Bioforest has also made it easier to expand the collaboration network, acting as a bridge between academia and the industrial operation. At the same time, the large amount of information that ARAUCO generates has allowed us, in a virtuous relationship, to be part of multiple associative research projects,” says Juan Anzieta.
The subsidiary has also taken important steps in the adoption of advanced technologies, collaborating with academic institutions and local startups. An outstanding example, which was featured at COP16, is its work with Ecogen and Lemu - part of Arauco Ventures - whose analysis of environmental DNA
and satellite data makes it possible to identify priority species and ecosystems for conservation.
“We are using big data to select restoration areas with scientific criteria, thus maximizing local and global benefits,” Anzieta adds.
As part of ARAUCO's strategy, the company set out to become Nature Positive by 2022, that is, to ensure that the impact of its activities on nature is positive.
A key step on this path has been the development of a first measurement of the natural capital of its biological assets in Chile. This concept includes nature's resources that support human life and activities, such as forests, rivers, soil, oceans and ecological processes that regulate climate, water and air.
The 16th United Nations Conference on Biodiversity, COP16, held in Cali, Colombia
Countries gathered under the slogan “Peace with Nature.”
1.7 MILLION 500,000
39
10
Hectares of native forest and protection areas. Year target.
Juan Anzieta, who shared these results for the first time during the Cali Conference, says: “Being able to assess the value generated not only for the company, but also for society, allows us to make better decisions, locate restoration actions where they have a real impact, and provide information to investors and clients about our positive impact on biodiversity."
Preserving, protecting and restoring biodiversity in the areas surrounding its operations is one of the pillars of the Copec subsidiary's environmental strategy. Its goal is to protect 39 ecosystems located within a radius of between eight and 30 kilometers from its plants and service stations throughout the country over a 10-year horizon, thus contributing to climate resilience and species conservation.
Camila Valenzuela, Sustainability Director at Copec, explains that the roadmap to achieve it is already underway. “By the end of 2024 we expect to have 12 of these ecosystems with some degree of
protection. This can range from the design of a plan to the implementation of infrastructure, as appropriate.”
The La Chimba wetlands in Antofagasta and El Bato in Quintero are two successful projects led by the subsidiary together with Kennedy Foundation, which have shown a significant recovery process in a short time. Between 2021 and 2023, the surface area of the La Chimba wetland increased by 48% and the number of species observed grew exponentially, from 40 to 164 species. Meanwhile, El Bato grew from seven to 8.7 hectares and doubled the number of species in the same period.
The company showed at COP16 its experience in biodiversity and its strategy to address the commitment to protect these 39 ecosystems, a presentation given by José Muñoz, head of Copec's Environment Department.
“We were able to show that we have a forward-looking approach that addresses current needs and questions about the protection of nature,” explains Camila Valenzuela.
Both subsidiaries of Empresas Copec, together with Orizon, are part of the Strategic Committee in charge of designing the Business Action Plan on Biodiversity, promoted by the Environment Ministry and Acción Empresas, whose first developments and key initiatives were introduced in the Chilean pavilion at COP16. Its goal is to involve the private sector in environmental conservation, seeking to integrate companies in the protection and regeneration of ecosystems, aligning them with global and national goals.
“One of the areas in which ARAUCO has worked most directly, given our experience and more than two decades of learning in sustainable forest management, is that of metrics, in order to measure progress in terms of biodiversity,” says Juan Anzieta.
The plan proposes, among other things, that by 2030 companies should have a system that allows them to disclose in a standardized way their assessments of impacts, dependencies, risks and opportunities related to biodiversity.
Towards standardized and comprehensive reportability
As companies and the financial sector have increasingly integrated climate risks into their reporting, biodiversity is beginning to gain prominence in these indicators. In fact, the Global Reporting Initiative (GRI) recently published its GRI 101 reporting standard on biodiversity and the Nature Positive Initiative published a document in consultation with related metrics.
Preserving, protecting and restoring biodiversity in the areas surrounding its operations is one of the pillars of the Copec subsidiary's environmental strategy.
Camila Valenzuela explains that Copec's strategy aims to provide a quantitative response not only to risks, but also to adequately identify their impact and dependence, performance in environmental protection and the valuation of ecosystem services.
For his part, Juan Anzieta points out that, thanks to the coordination achieved with other companies as part of the Corporate Biodiversity Action Plan, “we have a strategy to focus more on biodiversity metrics. The good news is that we already have guidelines that allow us to report in a standardized way, for which the level of progress we have already made will undoubtedly give us competitive advantages,” he concludes.
BEYOND FORESTS: PROTECTING THE FUNGI KINGDOM
At COP16, Chile and the United Kingdom highlighted the crucial role of fungi in the fight against climate change, promoting their integration into conservation strategies. ARAUCO, together with the Fungi Foundation, has worked for years on the conservation of the fungi kingdom, promoting responsible harvesting practices and the protection of species.
“We have 17 endangered species that are present and preserved on ARAUCO properties in Chile. However, it is a very unknown kingdom, with thousands of species yet to be discovered,” says Juan Anzieta. Current research on environmental DNA is shedding light on new species and their role in ecosystems.
golden omega:
The company, specialized in the production of Omega-3 concentrates, sponsored Arica Sea Museum's 7th Photographic Contest, which invites to capture the beauty of the coast, seeking to rescue the natural heritage of the marine ecosystem and generate a culture of protection towards the environment.
This initiative is part of the project “Transfer and Training on the importance of the sea for the Arica and Parinacota Region,” which is funded by the Regional Government together with the Municipality of Arica and the sponsorship of Golden Omega, through its Zero Plastic Waves initiative.
The competition was held in two categories. In the Adult category, first place went to Rosario Guardiola with “Elegance in the air,” a photo where she captured the beauty of a dolphin's leap. Second place went to Jeorjina Palma with “Sailing at sunset,” while third place went to René Veliz, who surprised the judges with “From the shore setting sail to the horizon." In the Schools category, first place went to Adolfo Niemann with “Jump to freedom,” Cristhofer Espinoza took second place with “The albatrosses” and Valentino Formía was ranked third place with “Ghost crab.” worldwide
Looking ahead to the coming years, Arauco Educational Foundation maintains its commitment to public education.
With more than three decades of experience, the organization has promoted better education in the communities where ARAUCO has a presence, focusing on teacher training and support for schools. Its work has benefited thousands of students and teachers, contributing to a more inclusive and higher-quality system.
The early years of Arauco Educational Foundation were shaped by a challenging context in the education sector, where the needs for infrastructure, materials and training were significant. In line with this reality, it was considered necessary to define a clear focus that would generate a real and sustainable impact. Thus, efforts focused on one of the key elements, if not the most important, for transforming schools: teachers.
In 1989, ARAUCO engaged in a project that was far away from its core business. Seeking to promote the development of the communities where it had presence, in the regions of Maule, Ñuble, Biobío and Los Ríos, it gave life to an initiative whose main objective was to reduce the educational gaps in those rural areas that faced challenging realities, and to be an agent of change in the lives of thousands of children and young people.
Thus, 35 years ago, Arauco Educational Foundation was born, financed by Empresas Copec`s forestry subsidiary, which has focused its efforts on strengthening teachers, providing spaces for training and professional development through different programs that enrich their teaching and emotional skills, essential to make a significant impact in the classroom.
Isidora Recart, who has been part of the educational institution since 1991 and has led the team as the Foundation's executive director since 2014, emphasizes that “the moment we decided to provide tools to the teachers was the first step in defining the impact we were looking for, since this would have a direct impact on student learning, creating a multiplier effect that would go beyond the classroom and would also contribute to a long-term vision."
In addition to training teachers, the organization adopted a comprehensive strategy that also involved principals and families. Thus, it was discovered that for a transformation to be effective and sustainable, it had to involve the entire educational community.
The next step that defined the institution's beginnings was to ensure that the contents and methodologies applied were of quality and relevant to each of the realities. “To achieve this goal, we worked from the beginning with professional experts in different areas, who collaborated with the Foundation's internal teams to ensure the
relevance and effectiveness of each program,” says Isidora Recart. At the same time, evaluation became a central tool, as it was aimed at measuring impact and ensuring that learning was continuously adjusted to the needs of the schools.
In those early years, a decision was also made that would be key in its history: adding self-esteem as a key area of learning.
“At a time when this topic was not addressed with the
relevance it has today, the Foundation opted for a comprehensive perspective of student development, encompassing both academic and socioemotional aspects,” highlights the executive director.
And so, as the 2000s moved forward, the focus was broadened, recognizing the importance of the first stages of development, incorporating work in early childhood under the premise that for an educational trajectory to be successful, the foundations must be solid from the earliest years.
“During the last time we have placed great efforts in guaranteeing the continuity of students and avoiding desertion, a crucial issue today for equity,” says Recart. In addition, the Foundation has kept a commitment to the comprehensive development of students, which is reflected in its support for children's and youth orchestras. Since its beginnings, the Foundation has promoted this initiative, which currently supports seven orchestras in different locations, promoting the artistic and personal development of the students.
The early years of Arauco Educational Foundation were shaped by a challenging context in the education sector, where the needs for infrastructure, materials and training were significant.
Students Publications including books, reports and studies
Technical resources available on the web.
Municipalities in Maule, Ñuble, Biobío and Los Ríos. Schools
Teachers
The Arauco Educational Foundation's material is available at www.fundacionarauco.cl
The Foundation is actively involved in the regions where ARAUCO has presence, in Maule, Ñuble, Biobío and Los Ríos, with special emphasis on rural schools.
Throughout its more than three decades of existence, the Foundation's main work has focused on the creation of training programs. Thus, the institution offers different language, mathematics and self-esteem programs. In addition, it has sought to promote work with libraries and mobile libraries, supporting 19 municipalities in four regions, providing resources and training in reading mediation, with which it seeks to share practices, resources and methodologies to bring books to the most remote locations, encouraging the habit and love for reading.
Early childhood programs in different locations also stand out, as well as pedagogical and managerial leadership courses. Also, during the history of the foundation, many short refresher courses, seminars, discussions and opportunities for reflection have been held.
As for the most current programs, this year the Reading Mastery course was made available, in which 4,948 teachers have enrolled, and teaches how to evaluate oral reading to recognize how much progress has been made and to early detect students who require support. “It is an online course that has already certified 1,368 professionals, convening 13 countries and, in Chile, 278 municipalities in the 15 regions of the country, also making available a platform to record results online and the digital book,” adds Recart.
The Foundation is actively involved in the regions where ARAUCO has a presence, in Maule, Ñuble, Biobío and Los Ríos, with special emphasis on rural schools. In these locations, more than 75% of municipal schools are rural, serving 31% of the school enrollment. At the national level, rural schools represent almost 30% of educational establishments and 8% of the country's enrollment, according to figures from the Ministry of Education.
Most of these institutions are concentrated in the 1st to 6th grade levels and many of them are multi-grade, which means that a single teacher must teach students from
different grades in the same room.
In this context, in terms of impact, throughout its 35-year history, Arauco Educational Foundation has benefited more than 121,340 children and young people through its participation in 659 schools in 34 municipalities in the four regions where it operates. Through these efforts, it has made 117 technical resources available on its web platform and has trained more than 6,000 teachers. In addition, it has published almost a hundred educational resources.
The impact of the foundation has been evaluated over time, although measuring its impact in the places where it operates has posed challenges due to the particularities of the context, the complexity of the programs and the diversity of support, especially in rural schools with different characteristics and without systematized historical information. However, in collaboration with Universidad
de Chile's Center for Advanced Research in Education (CIAE, for its acronym in Spanish), the Foundation developed a study to measure the long-term impact of its interventions.
The results of this study were encouraging, highlighting that, of the 72 schools supported, seven out of 10 made positive progress in their educational performance. Furthermore, significant improvements in learning indicators were revealed, with an increase equivalent to 0.6 more years of schooling in reading and 0.4 in mathematics.
The foundation has made significant progress thanks to its work together with several strategic partners. As Isidora Recart points out: “This entire trajectory would not be possible without partnerships. We firmly believe in the importance of working together with other players, a conviction that has accompanied us from the first program until today." Publicprivate collaboration has been key to the success of the initiatives, especially with the municipalities and their training departments, the province authorities and the Ministry of Education, which has provided support through different laws.
The executive director adds: “Partnerships make it possible to join efforts, articulate actions and
create the necessary conditions to improve the quality of education, ensuring that progress in the territories is maintained and strengthened."
The Foundation has also been able to consolidate valuable partnerships with civil society organizations and professionals of excellence. These links have enabled the incorporation of cutting-edge knowledge, fostering innovation and continuous improvement. “This has driven us to keep up with educational developments, allowing us to adapt to current needs,” she stresses.
Arauco Educational Foundation has benefited more than 121,340 children and young people through its participation in 659 schools in 34 municipalities in the four regions where it operates.
The Foundation’s goal is to continue being part of the projects and challenges of thousands of students.
Despite the progress made, the challenges remain significant, since, although academic improvements have been achieved, problems such as attendance, grade repetition and dropout still persist, even in the best performing schools, the executive emphasizes. “It is essential that education policies are implemented in a more robust and systematic way to address these problems at their root,” she stresses.
Looking ahead to the coming years, Arauco Educational Foundation remains committed to public education. In this line, Isidora emphasizes: “We want to continue strengthening alliances and collaborate with national initiatives aimed at building the education that we all seek for the country. Our goal is to continue being part of the projects and challenges of thousands of students.”
“With these efforts we not only help generations of students to reach their full potential, but we also work to achieve higher quality education, which is not just an ideal, but a reality,” says Isidora Recart, highlighting that the dream of a country with greater equity, where everyone can develop their full potential, is the guiding force behind the foundation since its creation.
“We know that better education is the engine for achieving equal opportunities in Chile and that conviction continues to be our daily inspiration, motivating us to think of ourselves with optimism into the future,” she concludes.
FISHERIES SECTOR
EBITDA: US$ 47 million
EBITDA: US$ 1.355 billion
summing it up FORESTRY SECTOR
The most recent results reported, as of September of this year, show an Ebitda of US$ 2.372 million and a net income of US$ 920 million. These figures represent increases compared to last year, with rises of 44.1%% and 403.8%, respectively.
A few weeks ago, the company published its results for the third quarter of 2024, with an Ebitda of US$ 765 million and a net income of US$ 404 million.
These figures show an interesting recovery compared to the levels shown in 2023, when there was a significant fall in pulp prices, as well as a substantial improvement in production costs, which during 2023 were affected upwards by MAPA's start-up process. At the same time, the results begin to reflect the drop in prices that has been seen in the pulp market in recent months, in line with an important inflow of international capacity, an effect that was offset, however, by volumes sold by ARAUCO that were above the previous quarter, which was impacted by a port strike.
Meanwhile, in timber, results continue to be consistent with historical average levels, with volume increases offsetting price declines.
In the energy sector, results are stable, reflecting robust competitive positions. Noteworthy is the growth of volumes in Chile and the general performance of the lubricants business, together with Abastible's figures, which shows sales growth in all the geographies where it participates.
In the mining area, Marcobre shows an improvement in Ebitda, as a result of the good copper price scenario and one-off effects associated with insurance compensation.
During the quarter, there was also an extraordinary result associated with the sale of forestry assets in Brazil, which generated a profit of US$ 170 million and an increase in cash of almost US$ 1 billion. This is a significant contribution to the Company's financial strength, through an operation that reflects a permanent vocation to make value transparent and seek the “best owner” for its assets.
All in all, Empresas Copec closed the quarter with a Net Debt/EBITDA ratio of 2.5, which is in the center of the long-term target range, leaving it in a very good position to undertake its new projects.
Thus, at the end of the quarter, the approval of the Sucuriú project, the largest in the Company's history, was announced. This is a 3.5 million ton pulp mill located in the state of Mato Grosso do Sul, Brazil, an area with unbeatable conditions for forest growth and excellent logistical connectivity. Its construction has been entrusted under a “turnkey” contract to the Scandinavian company Valmet, which has extensive experience in the pulp industry. The unit costs of this project, both in construction and production, are expected to be among the lowest in the industry. For its financing, a structure composed of debt, ARAUCO's cash generation and a capital
contribution to this subsidiary from the parent company Empresas Copec has been designed. All of this is within the Company's financing policy.
Therefore, we have an attractive project that is expected to generate significant economic value, supported by adequate financial structures and with the important positive effects on environmental sustainability inherent to the forestry sector, which contributes, as few other industries do, to carbon absorption, the substitution of less environmentally friendly materials and biodiversity. Strategic focus, search for value generation, financial prudence and sustainability converge in this project, which will concentrate the Company's efforts over the next few years.
This is in addition to the ongoing progress made by our subsidiaries in the energy transition. In an uncertain future scenario in terms of technologies and business models, our companies have been opening up options that strengthen their competitive positions to enable them not only to face, but also to drive and take advantage of this transition. During the quarter, the creation of Abastible Tec, the import of renewable diesel and the announcement of new electric bus charging terminals by Copec are examples of this.
All of these improvements have allowed us to continue increasing the confidence of the financial markets in the Company.
In recent months we placed Empresas Copec's first green bond, and our subsidiary ARAUCO also issued instruments of this type. The investor community's reception of these operations has been unbeatable, enabling us to achieve attractive financial conditions that will be a key support for Empresas Copec and its subsidiaries to continue moving forward for future generations.
Female executives linked to Empresas Copec among the 100 Female Leaders 2024
Copec Voltex to build the first electroterminal for public transportation in southern Chile
read read
Nutrisco grants Innovation Award of the I+A Call at Espacio Food & Service
read Colgas begins construction of new liquified petroleum gas (LPG) import facilities in Colombia read
the ranking, conducted by cadem, distinguished eduardo navarro, chief executive officer, and rodrigo huidobro, chief financial officer, in the “corporate leaders” segment.
The 15th version of the study Citizen Brands “No fear: More branding, less performance,” by Cadem, considers the evaluation of 310 brands and 400 senior executives in the private sector, seeking to acknowledge companies and leaders for their positive presence in public opinion, relevance and contribution to society.
Thus, in this new version, Eduardo Navarro, CEO of Empresas Copec, was highlighted as one of the 10 most relevant business leaders, and Rodrigo Huidobro, as the second best CFO during 2024.
Regarding the positioning of citizen brands, the same report highlighted the subsidiary Copec as the second best evaluated, showing a significant improvement after ranking 15th in the previous version of this study. In addition, the subsidiary led the Gas Stations category.
in the survey conducted by mic business consulting, ese business school and el mercurio, the subsidiary was acknowledged as the most admired company in 2024.
Copec won first place in the Fuel Distribution category of the Most Innovative Companies 2024 ranking, which has been carried out for 15 years and aims to highlight the country's most innovative companies, recognizing their capacity for adaptation and leadership in a changing environment.
As a result, the subsidiary was distinguished for its transformation process towards sustainable solutions and the diversification of its offer, including renewable energy, electric mobility and convenience.
In addition to rewarding companies that have stood out for their innovation in their industries, Copec was recognized as the most admired company in 2024.
the project includes a new impregnation center and a melamine line, which will supply value-added products to the subsidiary's plants in mexico, the united states and canada.
The expansion of the industrial complex, located in the state of Durango, is scheduled for the first half of 2025 and incorporates advanced technology to maximize occupational safety, environmental efficiency, and productivity. It will also use emissions from the production process to generate energy.
The project involves the construction of 11,000 m2, with 9,000 m2 for the impregnation center and 2,000 m2 for the new melamine line. The plant will create 70 direct jobs and 200 indirect jobs, and will aim to promote small local forestry producers.
the initiative seeks to strengthen the cash flow of suppliers, allowing them to meet their financial obligations, consolidate their operations and promote their growth.
The update to the subsidiary’s program directly benefits more than 6,000 service providers. Starting next year, the payment term will run from the delivery of the goods or completion of the service, and not from the date of issuance of the invoice, as is currently the case.
In addition, Abastible will implement a dispute resolution system, where an external and independent body will resolve potential conflicts that may arise during the contractual relationship between the company and its suppliers.
The initiative is in addition to the recent signing of an alliance to join the Ministry of Economy's Somos Almacenes program (We are grocery stores), whose goal is to promote the growth of these SMEs, revaluing and strengthening their social, economic and public role as a fundamental part of the local economy.
the award granted by el mercurio acknowledged paula jervis, legal and corporate affairs manager at abastible, and andrea castro, general manager at copec voltex.
The 23rd version of the award annually granted by El Mercurio and Mujeres Empresarias (Business Women) seeks to give visibility to female leadership in Chile and acknowledges women who stand out for their contribution to the social and economic development of the country in five categories: Business Women, Executives, Professionals, Academics and Researchers, Public Service and Social Service.
This year, recognition was given to Paula Jervis, who for the last eight years has been working as Legal and Corporate Affairs Manager at Abastible, where she has stood out for creating the legal area and the Compliance department.
Andrea Castro, who has been general manager of Copec Voltex since 2022, was also recognized for her role in promoting electromobility in the country, through the deployment of a charging network of more than 1,800 kilometers.
this is in addition to 12 other electro-terminals nationwide, consolidating copec as the main supplier of energy for electric transportation.
The subsidiary announced the construction and energization of an electroterminal located in Penco, Biobío Region, which will have eight high-power charger dispensers. It will be the first of its kind in the southern part of the country and will replicate the developments carried out in Santiago and Antofagasta.
The initiative is part of the “Renew your Bus” program by the Transport and Telecommunications Ministry, together with regional governments, aimed at modernizing transport fleets.
the subsidiary acknowledged three projects in the food industry, highlighting their business potential, social impact and creativity.
As part of the international food industry exhibition Espacio Food & Service, Nutrisco granted the Innovation Award in the Food Innovation Call (I+A, for its acronym in Spanish), a public-private collaboration between Transforma Alimentos, Espacio Food & Service and Nutrisco, which seeks to acknowledge companies that develop scalable technological products or services for the market and that satisfy a demand with high growth potential or solve a relevant problem in the sector.
The winners in this opportunity were Kura Biotech, Collagen Fans and Comparini Lab, all of which received financial support along with mentoring for scaling up.
“We firmly believe in the power of innovation to transform the food sector and we are convinced that promoting high-impact projects will improve people's lives through food. We are sure that the way to do this is by fostering public-private collaboration that will allow us to complement our capabilities to provide support, financing, visibility and business strategy for these projects to reach their full business potential,” said Andrés Barros, Corporate Affairs & ESG Manager of Nutrisco.
the initiative will be located at the okianus terminals port in the city of cartagena, and it is expected to start operations by the end of 2025
With a total investment of US$60 million, the goal of the new facility is to guarantee the supply of LPG to the Colombian market, with a focus on household energy, industrial development, mobility, and energy transition.
Didier Builes, Colgas CEO, stated that it is “a milestone in the company’s history and a commitment to the sustainable development of the country. By guaranteeing a continuous supply, we are ensuring energy to the people, strengthening the industry and improving the quality of life of millions of Colombians. In addition, this initiative contributes to the diversification of the energy matrix and the reduction of our carbon footprint.”
the purpose of the event is to inspire students through the personal and professional experiences of executives from the company and its subsidiaries.
In line with Empresas Copec's purpose of shaping the world for future generations, ten executives from the Company and its subsidiaries held Professional Lectures at the Archbishop Manuel Vicuña School, of San Joaquín, located in La Legua.
In this instance, the executives had the opportunity to inspire and motivate students from seventh grade to fourth grade of high school, through presentations focused on their personal and professional life experiences.
Eduardo Navarro, CEO of Empresas Copec, commented: “Historically, we have tried to be a contribution to education, as this is one of the foundations for a better future for the generations to come. In today's lectures, the students told us how grateful and proud they are of their school, a place that provides them with a quality education and, with it, the opportunity to develop, grow and transform their lives."
the facility aims at improving the development of products based on local raw materials and boosting the local economy in the surrounding communities.
The fisheries subsidiary, which belongs to Nutrisco, together with CeTA, the Technological Center for Food Innovation, opened a new facility in the Biobío region, which will be located inside the Orizon plant in Coronel.
The center has 235m2 equipped with cutting edge machinery, laboratories, product development areas and production lines. It will allow startups, SMEs and large companies from Biobío, La Araucanía, Los Ríos and Los Lagos to develop food piloting and prototyping projects.
Rigoberto Rojo, CEO of Nutrisco, said: “We are proud to lead sustainable nutrition from the sea. This center represents a relevant milestone, as it offers the most advanced technology for the food innovation ecosystem of the Biobío region to develop without limits.”
the partnership with the startup specialized in the automation of returns aims to transform logistics in e-commerce.
The Copec subsidiary, which has been part of the Company since 2022, sealed its first venture capital investment in Reversso. With this, it seeks to transform logistics in e-commerce, allowing companies to retain up to 80% of sales at risk of return. This, through a state-of-the-art technology system for exchanging products.
The Copec subsidiary and Reversso entered into an alliance in 2023 to minimize losses in the returns process and maximize the value of the extensive network of Blue Express Points.
the milestone contributes to the national goal of reducing co2 emissions to less than 95 million tons by 2030 and achieving carbon neutrality by 2050.
The subsidiary completed the first import of this type of fuel, made from hydrotreated vegetable oil (HVO), which is obtained from natural and renewable sources, such as vegetable oils and animal fats, among others. It emits up to 95% less carbon footprint compared to fossil diesel.
This first import of HVO will be destined for Copec’s primary fleet of trucks that distribute fuels in the Metropolitan Region
The company’s CEO, Arturo Natho, emphasized that “the introduction of renewable diesel in Chile will complement the country’s energy matrix and will be an alternative for those industries with a high level of energy consumption and which must reduce their carbon footprint.”
journalistic magazine published by: empresas copec s.a.
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legal representative: eduardo navarro
director: rodrigo huidobro
editing and writing: m. francisca riveros
journalists: constanza serrano isidora riesco
daniela araneda
marisol silva francisca zúñiga equipo de comsulting
proofreading: norinna carapelle
photography: christian hamed image bank from empresas copec and subsidiaries image banks angelini family photo archive
design and graphic production: porta4, design studio
translation: cristina molina
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