This investor brief summarizes environmental, social, and governance risks at Grupo México, the third largest copper mining company in the world... There is significant governance risk at Grupo México because the company does not disclose the identity of director nominees for shareholders to vote on... Without a transparent nomination process... investors cannot ensure board accountability.

... In October 2019, approximately 1,700 U.S. workers rejected ASARCO’s [a wholly-owned subsidiary] proposal in labor contract negotiations. The company proposed no wage increase for nearly two-thirds of workers, freezing the existing pension plan, and more than doubling the out-of-pocket contribution that workers pay for health care... In June 2020, Region 28 of the U.S. National Labor Relations Board issued a consolidated complaint against ASARCO, alleging that the company had bargained in bad faith and engaged in coercive activities in violation of U.S. labor law, and will schedule a hearing for an administrative law judge to review evidence against ASARCO for unfair labor practices... Between 2010 and 2020, the U.S. Occupational Safety and Health Administration found at least 26 violations at ASARCO that resulted in monetary penalties and the U.S. Mine Safety and Health Administration found 576 cases of violations... Grupo México also has had worker fatalities in its global operations.

... In 2009, ASARCO paid $1.79 billion USD as part of the largest environmental bankruptcy in U.S. history to settle claims by the U.S. Environmental Protection Agency for hazardous waste pollution and fund environmental cleanup and restoration at more than 80 sites... Grupo México has also had environmental problems in its operations in Mexico... Your pension plan’s assets may be invested in Grupo México through allocations with asset managers such as BlackRock, Dimensional, Amundi Asset Management SA, Vanguard, and BC Investment Management.