Vision for 2020

The Vision for 2020 is our goal for the SMM Group’s coexistence with the global environment and society aimed at sustainable growth. As the SMM Group’s business activities involve large-scale developments, such as mining developments, there is a significant impact on the surrounding areas, the scope of which extends to the economy, the environment, human rights, and the local communities.
Therefore, the SMM Group believes that in running our business it is essential to obtain a Social License to Operate that cannot be achieved in the absence of trust-based relationships with the local communities, in addition to a legal operating permit.
In 2015, the SMM Group revised its Vision for 2020 as it applies to its Six CSR Areas of High Priority in view of business globalization and other changes in social conditions. In tandem with this revision, we identified material issues that the Group needs to address from among a large number of sustainability issues with the primary focus on evaluating impacts on the Social License to Operate,opportunities for future earnings, and the sources of our competitiveness.

Effective Use of Resources

Numbers next to indicate the corresponding Material Issues.

A company that generates resources using innovative technology

[ KPI ]

1. Develop and implement technologies to effi ciently recover resources (low-grade/hard-to-process ores

1, 3

1) Promote rational use of lowgrade nickel ore (make nickel produced from low-grade ores 2/3 of nickel production overall)
2) Achieve profi tability in our copper business by developing processing technologies for lowgrade / hard-to-process ores
3)Develop effi cient gold mining technologies
4) Be active in marine resource development projects (contribute to the development of mining technologies and processing solutions)
2. Develop new and effective uses for by-products

2

1) Recover and market scandium from nickel oxide ore
2) Recover raw material for iron and steel manufacturing from nickel oxide ore (commercialize chromite and hematite)
3. Promote recycling

1

Improve our effective use of recycled resources

Environmental Preservation

Numbers next to indicate the corresponding Material Issues.

A company that uses advanced technologies to reduce environmental impacts and contributes to preserving the global environment

[ KPI ]

1. Advance biodiversity preservation initiatives

4, 5, 6, 7, 8, 9

1) Implement global warming countermeasures (1) Expand materials business for products (creating, storing, and saving energy) with low CO₂ emissions Achieve a 5-fold expansion of revenue (measured against FY2011) from materials for products with low CO₂ emissions
(2) Reduce CO₂ emissions from operations Continue to reduce CO₂ emissions by approximately 1% annually
Contribute to CO₂ emission reductions by constructing a plant using HPAL, etc., which has significant energy saving advantages over other technologies such as NPI
(3) Develop and use renewable energy to contribute to CO₂ emission reductions
2) Steadily develop and adopt technologies for reducing environmental impacts (1) Implement a planned approach for minimizing the emission of chemical substances
(2) Contribute to environmental preservation through forestation, etc.
(3) Verify the environmental impacts of our portfolio companies and supply chain, and implement measures to reduce risks
2. Maintain our record of zero significant environmental accidents

8, 10

1) Improve strength against earthquake and severe weather at closed mine sites
2) Prevent significant environmental accidents by strengthening environmental risk management

Contribution to Society and Local Communities

Numbers next to indicate the corresponding Material Issues.

A company that earns trust and contributes to regional development through our business and social contribution activities rooted in each region

[ KPI ]

1. Communicate with local communities to recognize social issues in regions where we do business, and implement programs to support solutions to those issues

11, 12, 13, 14, 15

2. Provide support for the improvement of educational infrastructure and the maintenance and development of academic activities, culture, tradition, and art in countries where we do business

11, 14, 15

3. Provide support for recovery and reconstruction after large-scale disasters

16

1) Provide support taking into consideration the relationship between the affected area and SMM group’s business
2) Provide continuous support for the people and areas affected by the Great East Japan Earthquake
4. Allocate financial resources for initiatives 1 to 3 above

Respect for People and Human Rights

Numbers next to indicate the corresponding Material Issues.

A company where diverse human resources exercise their ability sufficiently and take a vibrant and active part in each field

A company that works with its stakeholders to strive for a society that actively respects human rights

[ KPI ]

1. A company where employees can take a vibrant and active part

19

1) Work satisfaction Make continual improvements based on the results of employee satisfaction surveys
2) Mental health (1) Optimize the work environment through training and the reduction of overly long working hours
(2) Reduce mental health afflictions in employees
2. Respect diversity

18

1) Support the active contribution of women at SMM (domestically) (1) Target number of female managers: 10 or more
(2) Target proportion of female employees in the recruitment of management track employees: 1/3
2) Promote non-Japanese employees as key personnel
3) Employ people with disabilities Establish and achieve an internal target for the number of employees with disabilities in the Group domestically
4) Establish a strategy and supportive framework as a means to facilitate initiatives 1 to 3 above
3. Develop human resources

17

1) Continue the program for select employees after confirming the effectiveness of selective training initiatives
2) Develop broadbased training to boost the level of our workforce Provide training opportunities to all employees: 100% participation in training courses
3) Enhance training for locally hired executive managers overseas
4) Conduct training for further support for the active contribution of female employees
4. Human rights

19, 20, 21

Prevent major human rights infringements (1) Hold regular training on the SMM Group Human Rights Policy: applicable to all workplaces
(2) Establish human rights hotlines (offering multiple means for reporting): applicable to all workplaces
(3) Make employees aware of the SMM direct hotline: applicable to all workplaces
(4) Implement regular human rights due diligence (in three categories): once every 3 years

Occupational Health and Safety

Numbers next to indicate the corresponding Material Issues.

A company that accords safety the highest priority and provides comfortable working environments

[ KPI ]

1. Ensure safety

22

1) Make our final target zero occupational accidents overall
2) Reduce occupational accidents to three or fewer per year by 2020 and establish frameworks for achieving this target (Applicable to all domestic Group employees)
3) Halve the frequency rate of occupational accidents by 2020 (Applicable to all domestic and overseas Group employees) Reduce the frequency rate from 1.28 (CY2011) to 0.60 (CY2020)
2. Provide comfortable working environments

23

1) Provide healthy working environments
(1) Achieve zero new cases of employees with occupational disease (requiring treatment) (Applicable to all domestic and overseas Group employees)
(2) Achieve zero Control Class 3 workplaces (excluding locations stipulated in guidelines, etc.) and reduce Control Class 2 workplaces(*) (Applicable to all domestic business sites)
2) Implement other working environment improvements
  1. Changed from “Achieve zero Control Class 3 workplaces (excluding locations stipulated in guidelines, etc.) (Applicable to all domestic business sites)” in 2016

Stakeholder Communication

Numbers next to indicate the corresponding Material Issues.

A company that works to communicate transparently with all worldwide stakeholders to deepen mutual understanding

[ KPI ]

1. Encourage deeper mutual understanding with employees

25

1) Continue conducting employee awareness surveys
2) Hold regular dialogues with workers’ unions or representatives from employees
2. Encourage mutual understanding with local communities and citizen groups

24

1) Continue regular meetings with local communities and participate in community activities
2) Carry out cooperative activities with NGOs/NPOs
3. Encourage mutual understanding with shareholders and investors

26

1) Publish integrated reports and improve their content
2) Promote dialogue with investors
4. Encourage mutual understanding with other stakeholders
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