Sustainability Data

Engagement with Stakeholders

Stakeholder Engagement (FY2020)

Stakeholders Communication method and content
Customers Business activities
Websites
Commercials
Shareholders and Investors For institutional investors and analysts:
  • Hold Account Settlement and Business Strategy Progress Briefing sessions (2 times/year)*1
  • Hold telephone conferences on the content of financial reports (4 times/year, with simultaneous Japanese to English interpretation)*1
  • Hold IR Day business briefings (1 time/year)*1
For individual investors:
  • Publish The Report for Shareholders (2 times/year)
  • Hold a briefing (4 times/year)*1
Employees In-house bulletins/intranet
Various training
Employment environment surveys

Japan:
  • Hold labor-management council meetings, labor-management discussions, and Labor-Man-agement Advisory Committee meetings (as needed)
  • Hold a Central Labor Management Conference (1 time/year)
  • Set individual job targets at the start of the fiscal year, and hold talks between individual employees and their supervisors to ascertain the progress being made toward the targets. (3 times/year)
Overseas:
  • Establish opportunities for regularly explaining management status to labor unions and employee representative organizations, and for hearing the opinions and requests of employ-ees. In response to requests for safety and work environment improvements, we confirm the conditions and enact the necessary improvement measures.
    Additionally, for cases where changes are made that particularly affect employees, we provide notice for an appropriate period in advance and provide a space for checking opinions.
Local Communities Hishikari Mine: Hold Pollution Prevention Council meetings (2 times/year)
  • CBNC: Hold regular information exchanges with 22 barangays,*2 including 11 “impact baran-gays” near Rio Tuba.
  • THPAL: Hold regular information exchanges with 14 barangays, including 4 neighboring “impact barangays.”
  • CBNC: Construct facilities required by each barangay, support schools by providing education-al supplies and materials required for operation, offer free medical support for local communi-ties, and promote livelihood support activities that facilitate self-sufficiency.*3
  • THPAL: Spread organic rice cultivation methods with the help of technical experts, help elderly in the area with daily necessities, and support educational advancement through scholarships, etc.*3
Business Partners and Suppliers Sharing the SMM Group Responsible Sourcing Policy Safety training for subcontractors
Civil Society Organizations Hold regular exchanges of opinion with the international environmental NGO Friends of the Earth Japan regarding their findings on topics such as the water quality of rivers around the CBNC and THPAL plants, both in the Philippines. Implement necessary improvement measures that reference the group’s opinions and recommendations. (2 times/year)
Government Agencies Regular exchanges of opinion with government agencies
  • *1Inorder to prevent COVID-19 infections, each of the Account Settlement and Business Strategy Prog-ress Briefing sessions, business briefings, and briefings for individual investors mentioned here were held online and videos of each event were shared through our website. Additionally, for each of the Account Settlement and Business Strategy Progress Briefing sessions, business briefings, and tele-phone conferences mentioned here, a script of explanations and minutes of Q&A sessions were also provided through our website.
  • *2Barangay: the smallest administrative division that makes up cities and towns in the Philippines, and denotes a village, district, or ward.
  • *3Part of our SDMP (Social Development and Management Program) initiative.

Complaints Made to the Group (FY2020)

Type of complaint Complaints
Complaints about impact on society 0
Complaints concerning the environment (e.g. vegetation overgrowth around the edges of business sites) 13
Total 13

All complaints were dealt with in an appropriate manner.

Main Organizations in Which SMM Has Membership

Organization Responsibilities of SMM officers and employees Initiatives relating to public policy
Japan Business Federation (Keidanren) Executive member; participation in the following commit-tees: New Industry and Technology, Canada, Environment and Safety, Oceanic Resources, International Cooperation, China, South Asia, Japan-Myanmar Economic, Japan-Brazil Economic, Gender Diversity, National Resilience, the Tokyo 2020 Olympic and Paralympic Games, Energy and Resourc-es (Planning subcommittee), Labor Legislation (Occupation-al Health and Safety subcommittee) As a unified business organization with the goal of making improve-ments to the autonomous growth of the domestic economy and to public life, we act reliably and swiftly after gathering opinions from the business world with regards to various internal and external economic challenges.
APEC Business Advisory Council Japan Member As a member of the Japanese chapter of the APEC Business Adviso-ry Council, an official private sector advisory entity for the Asia-Pacif-ic Economic Cooperation (APEC), we support the organization’s activities.
Japan Mining Industry Association Director; participation in the following committees and oth-ers: Mining, Reserves (chairman and deputy chairman), Planning and Coordination, Energy, Overseas Development, Environmental Management, Customs Duties, Funds, Sup-ply and Demand, Taxation, Exploration and Development, Sulfide Ore and Sulfuric Acid, the Special Committee for Depletion Allowance Measures and Safety Promotion Submission of mining industry policy requests to relevant govern-ment agencies regarding electricity fee issues, taxation, resource development, smelting and recycling technology, mine safety, and development of employee training. Members to be sent to govern-ment-sponsored investigative committees to present industry viewpoint.
International Council on Mining and Metals (ICMM) Implement ICMM’s Mining Principles
Promote ICMM activities and participate in each of the fol-lowing programme committees: Communications; Environ-ment; Social & Economic Development; and Health & Safety
  • Environment
    Initiatives for biodiversity, climate change, and water management
  • Health and safety
    Initiatives for sharing information on health and safety and the elim-ination of accidents
  • Materials stewardship
    Initiatives for science-based chemical substance management and supply chain management
  • Society and economy
    Initiatives to contribute to the economic development of society by the mining industry
International Copper Association, Ltd. (ICA) One member of the Board of Directors Brings together the global copper industry to develop and defend markets for copper and to make a positive contribution to society’s sustainable development goals.
  • Develop new uses for copper
  • Promote demand for copper
  • Contribute to achieving the SDGs
Japan Copper Development Association One director
  • Develop uses for copper/copper products; develop technology
  • Provide correct information about copper (verdigris, bluish water from copper pipes, etc.)
Nickel Institute (NI) Participate in Board, Executive Committee (EXCO), and Stra-tegic and Planning Advisory Committee (SPAC) meetings Participate on committees for H&E PP (public policy and regulations), Science (scientific research), and MD (market development) Provides support for sustainable growth and development in the current stainless steel market and new markets for nickel. Promotes sound science, risk management, and socio-economic benefit as the basis for public policy and regulation.
Cobalt Institute One director
Participate in Board, Executive Committee (EXCO), and Cobalt REACH Consortium working group meetings
As a representative of the cobalt industry, we provide advice addressing all issues related to cobalt, including health, safety, and environmental issues, in a way that encourages sustainable and responsible production and use. We also work to obtain and share original information regarding sourcing, production, and use.
The Sulphuric Acid Association of Japan One director; participation in the General Affairs Committee, Business Affairs Committee, Technical Committee and Edi-torial Committee Communicating policy and information from the Manufacturing Industries Bureau of the Ministry of Economy, Trade and Industry to member companies and compiling and presenting requests from member companies. Striving to publicize and promote use of sulfuric acid as an industry organization through means such as issuing booklets on sulfuric acid, and establishing the Standard of the Sulphuric Acid Associa-tion of Japan (a quality standard for sulfuric acid).
Japan Electronics and Information Technology Industries Association (JEITA) Participate in Electronic Components Board and Dielectric Ceramics Committee Collection of various statistics, and participation in reviews of regu-lations, standards, environmental measures and other issues.
Battery Association of Japan Associate member Promotion of measures related to recycling, quality performance, and product safety that will be required in the future as demand for secondary batteries increases.
Battery Association for Supply Chain Regular member
One director (representative director and chairperson)
Provide advice on government policy to strengthen the global competitiveness of Japan and promote deliberation in Japan regarding conforming to international standards for each type of raw material in order to facilitate the development of healthy supply chains for batteries, battery parts, and materials.

Partnerships with Outside Organizations

SMM participates in the international organizations listed below, issues declarations of support, complies with the organizations’ rules, and supports their activities. As a company in the mining and metal refining industries, we undertake initiatives for the sustainable develop-ment demanded of us.

The International Council on Mining and Metals (ICMM)

ICMM is an international organization established to ensure that the mining and metals industries are made safe, fair, and sustainable (https://www.icmm.com/en-gb). It is comprised of the world’s biggest mining and metals companies, as well as regional and commodi-ty-focused organizations. SMM is a member company.
ICMM has established the ICMM Mining Principles as guidance for environmental, social, and governance initiatives in the mining and met-als industries. The Mining Principles comprise the 10 founding principles of the ICMM, a set of performance expectations*1 that stipulate spe-cific targets for action on these principles, position statements concerning certain specific issues, and an assurance and validation procedure.
The SMM Group reflects the ICMM 10 founding principles in our CSR and other policies, and publishes reports in line with GRI standards, as mandated for ICMM member companies. In addition, we comply with the ICMM Position Statements that embody the principles, and otherwise engage in a variety of actions as a member company.
*1Performance Expectations

The 10 Principles of the ICMM

Principle 1 Apply ethical business practices and sound systems of corporate governance and transparency to support sustainable development.
Principle 2 Integrate sustainable development in corporate strategy and decision-making processes.
Principle 3 Respect human rights and the interests, cultures, customs and values of employees and communities affected by our activities.
Principle 4 Implement effective risk-management strategies and systems.
Principle 5 Pursue continual improvement in the health and safety performance with the ultimate goal of zero harm.
Principle 6 Pursue continual improvement in environmental performance issues, such as water stewardship, energy use and climate change.
Principle 7 Contribute to the conservation of biodiversity and integrated approaches to land-use planning.
Principle 8 Facilitate and support the knowledge-base and systems for responsible design, use, re-use, recycling and disposal of prod-ucts containing metals and minerals.
Principle 9 Pursue continual improvement in social performance and contribute to the social, economic and institutional development of host countries and communities.
Principle 10 Proactively engage key stakeholders on sustainable development challenges and opportunities in an open and transparent manner, effectively report and independently verify progress and performance.

Progress on validating achievement of performance expectations

We have identified eight business sites that are covered by the performance expectations and are carrying out a self-assessment of these sites and the overall company. The self-assessment of all of the covered sites is scheduled to be completed by December 2021 and we plan to finish assigning an order of priority in which the sites will receive external assessments. For details regarding the assurance and validation procedure for performance expectations, see the link below.
https://www.icmm.com/assurance-and-validation

Position statements

ICMM has set forth the following position statements regarding important individual issues. The SMM Group is committed to complying with these initiatives.

  • Climate Change
  • Water Stewardship
  • Tailings Governance Framework
  • Indigenous Peoples and Mining
  • Mining Partnerships for Development
  • Transparency of Mineral Revenues
  • Mercury Risk Management
  • Mining and Protected Areas

The Extractive Industries Transparency Initiative (EITI)

We agree with and have declared our support for the aims of the Extractive Industries Transparency Initiative (EITI).*1

*1EITI
EITI is a framework for multinational cooperation that enhances transparency in the flow of funds from the so-called extractive industries, those that are involved in oil, gas, and mineral resources, to the governments of resource-producing countries, to prevent corruption and conflict and thereby promote responsible resource devel-opment that leads to growth and the reduction of poverty.

  1. We share a belief that the prudent use of natural resource wealth should be an important engine for sustainable economic growth that contrib-utes to sustainable development and poverty reduction, but if not managed properly, can cre-ate negative economic and social impacts.
  2. We affirm that management of natural resource wealth for the benefit of a country’s citizens is in the domain of sovereign governments to be exer-cised in the interest of their national development.
  3. We recognise that the benefits of resource extraction occur as revenue streams over many years and can be highly price dependent.
  4. We recognise that a public understanding of government revenues and expenditure over time could help public debate and inform choice of appropriate and realistic options for sustainable development.
  5. We underline the importance of transparency by governments and companies in the extractive industries and the need to enhance public financial management and accountability.
  6. We recognise that achievement of greater transparency must be set in the context of respect for contracts and laws.
  7. We recognise the enhanced environment for domestic and foreign direct investment that financial transparency may bring.
  8. We believe in the principle and practice of accountability by government to all citizens for the stewardship of revenue streams and public expenditure.
  9. We are committed to encouraging high stan-dards of transparency and accountability in pub-lic life, government operations and in business.
  10. We believe that a broadly consistent and work-able approach to the disclosure of payments and revenues is required, which is simple to undertake and to use.
  11. We believe that payments’ disclosure in a given country should involve all extractive industry companies operating in that country.
  12. In seeking solutions, we believe that all stake-holders have important and relevant contribu-tions to make—including governments and their agencies, extractive industry companies, service companies, multilateral organisations, financial organisations, investors, and non-gov-ernmental organisations.