Sustainability

Participation in and Declarations of Support for International Industry Organizations and Initiatives

GRI 2-28

The SMM Group participates in international organizations, declares its support for them, complies with the organizations’ rules.

International Council on Mining and Metals (ICMM)

ICMM is an international industry organization established to ensure that the mining and metals industries are made safe, fair, and sustainable. It is comprised of the world’s biggest mining and metals companies, as well as regional and commodity focused organizations. SMM is the only member company in Japan.
ICMM has Mining Principles as guidance for environmental, social, and governance initiatives in the mining and metals industries. The Mining Principles comprise 10 Principles, a set of performance expectations that stipulate specific targets for action on these principles, position statements concerning certain specific issues, and an assurance and validation procedure.
The ICMM also requires member companies to transparently disclose information in accordance with international standards. The SMM Group reflects the ICMM 10 Principles and its position statement in the visions and materiality issues of our Vision for 2030. We also disclose information in accordance with the Global Reporting Initiative (GRI) standard, which is an international standard on the disclosure of sustainability information, as well as the Global Industry Standard on Tailings Management (GISTM) and the Social and Economic Reporting announced in 2022 by the ICMM.

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 workers and communities affected by our activities.
Principle 4 Implement effective risk-management strategies and systems based on sound science and which account for stakeholder perceptions of risks.
Principle 5 Pursue continual improvement in physical and psychological 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 products 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.

Position Statements

Diversity, Equity and Inclusion / Transparency of Mineral Revenues / Climate Change / Water Stewardship / Tailings Governance Framework / Indigenous Peoples / Mining Partnerships for Development / Mercury Risk Management / Nature

Validation of Implementation and Progress of Performance Expectations (PEs)

Starting in FY2020, we have conducted self-assessment on the corporate level and subject asset (site1) level according to the periods designated by the ICMM. Furthermore, in FY2021 we prioritized sites to undergo third party validation. Since FY2022, we have obtained third-party validation for one site, and each year we disclose the results (implementation reports) based on the prioritization in accordance with the three-year cycle set by the ICMM. We plan to revise the prioritization of target sites every three years in accordance with ICMM provisions.

  • 1Defined by ICMM as operations involved in the production or refining of minerals and metals for sale or further processing.
■ Results of Prioritization (FY2021)

Toyo Smelter & Refinery, Hishikari Mine, Niihama Nickel Refinery

■ SMM’s Definition of Site Prioritization

Sites that produce or smelt and refine gold, silver, copper, and nickel, which are included in the minerals subject to international responsible mineral sourcing, sites that are large in scale (production volume, number of employees, etc.), and sites that produce metals as finished products (excluding facilities producing intermediate products)

■ Status of Third-Party Validation and Implementation Reports
FY2022 FY2023 FY2024
Target sites Toyo Smelter & Refinery Hishikari Mine Niihama Nickel Refinery

ICMM Performance Expectations implementation report

■ Corporate-level PE Self-Assessment Results (conducted in 2024)
Outcome1 Total
Meets Partially Meets Does not meet N/A
14 13 22 1 30
  • 1Each of the PEs was evaluated in light of the judgment criteria indicated for each PE in ICMM’s Validation Guidance, as follows
    Meets: Systems and/or practices related to the PE have been implemented (all the judgment criteria in the Validation Guidance are met) and there is sufficient evidence thereof
    Partially meets: Systems and/or practices related to the PE have been partially implemented (some judgment criteria of Validation Guidance are met).
    Or, verifiable evidence provided is insufficient
    Does not meet: Systems and/or practices related to the PE are not in place (all Validation Guidance judgment criteria are not met) or there is no evidence thereof
    N/A: Not applicable
  • 2Items that fell under “does not meet,” the reasons for the differences compared to “meets,” and future initiatives
    • PE1.5: Political contributions
    Data on political contributions are not disclosed. We will consider the possibility of disclosing this information in the future
    • PE 7.1: Operations in World Heritage sites
    Currently, the Group does not conduct any mining exploration or development in World Heritage sites, as there is no However, on April 1, 2025, we established the Sumitomo Metal Mining Group’s Nature Policy, which includes a commitment not to conduct exploration or mining at UNESCO World Heritage sites.

Social and Economic Reporting

The Copper Mark

The Copper Mark is a framework established in 2019 by the International Copper Association (ICA) to demonstrate "responsible production" in the copper industry and contribute to the United Nations' Sustainable Development Goals (SDGs).
Our company has begun the process of obtaining certification for The Copper Mark, an international framework that ensures responsible production activities in the copper industry from the perspectives of environment, society, and governance, for copper smelting at our Toyo Smelter & Refinery.

■ Response Status for Each Item
Standard No. Standard name Response Status at Toyo Plant
RRA3 Business Integrity We are committed to preventing money laundering and terrorist financing. We have identified and assessed the risk of money laundering in accordance with our "Policy on responsible sourcing of Copper, Nickel and Cobalt raw materials," and in the operation of our management system, we have implemented due diligence and risk management, transaction monitoring, training, and record keeping. We have conducted risk assessments for bribery, anti-competitive behavior, and money laundering, and have formulated and managed action plans to prevent and mitigate these risks. As a result, we confirmed that these risks have not being materialized.
RRA10 Responsible Supply Chains We conducted an ESG risk assessment of our suppliers as follows:
  • A survey was conducted targeting copper raw material suppliers of the Toyo Smelter.
  • Responses were received from 81% of all suppliers, and an evaluation was conducted on those suppliers.
  • Through five levels evaluation approach, 67% of the suppliers who responded fell into the group of top three levels.
  • For the suppliers who were rated and categorized in the bottom two levels, we will continue to approach and ask them to understand our evaluation results and provide advice and encourage them to undergo improvements.
RRA19 Community Health and Safety We respect the right of the local community to enjoy a safe and healthy living environment, and in the case we have caused any adverse impact, we will take prompt corrective measures.We conducted a risk assessment regarding local health and safety, and developed and managed an action plan to prevent and mitigate risks, and no risks were identified.
RRA22 Security & Human Rights In the security of our factories, we respect laws and human rights, and our security guards do not engage in violence or unjustified use of force.We conducted risk assessments regarding security, and developed and managed action plans to prevent and mitigate risks, and no risks were identified.

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 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 development that leads to growth and the reduction of poverty

EITI Principles

  1. We share a belief that the prudent use of natural resource wealth should be an important engine for sustainable economic growth that contributes to sustainable development and poverty reduction, but if not managed properly, can create 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 exercised in the interest of their national development.
  3. We recognize that the benefits of resource extraction occur as revenue streams over many years and can be highly price dependent.
  4. We recognize 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 recognize that achievement of greater transparency must be set in the context of respect for contracts and laws.
  7. We recognize 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 standards of transparency and accountability in public life, government operations and in business.
  10. We believe that a broadly consistent and workable 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 stakeholders have important and relevant contributions to make—including governments and their agencies, extractive industry companies, service companies, multilateral organizations, financial organizations, investors, and non-governmental organizations.

Back to Sustainability Top