Management Approach

Stakeholder Communication

Approach

At the SMM Group, the following entities were identified as stakeholders that we affect, or are affected by us: customers, shareholders, employees, local communities, creditors, business partners, civil society organizations, and government agencies.

Policy

A specific target has been established as the SMM Group’s proper objective for each stakeholder and we are advancing various initiatives in order to realize these targets.

The SMM Group’s Stakeholders and Proper Objectives Regarding Each Stakeholder

To Customers Be a company that accurately understands customer needs and has comprehensive competitiveness with an edge over other firms with respect to technology, quality, delivery and costs.
To Shareholders Be an excellent entity in which to invest: one that pursues maximum corporate value through efficient management and sound governance, disburses dividends matching its business performance, and discloses information as appropriate.
To Employees Be a company that provides a favorable work environment, clearly defines the roles of all individuals within the organization, and makes employees proud to work for it.
To Local Communities Be a company that coexists well with its local communities and that makes positive contributions to those regions’ development
To Creditors Be a company that has earning capacity, outstanding financial strength, and trustworthiness.
To Business Partners Be a company that possesses outstanding technological strength, places importance on integrity and trust, and is capable of co-prosperity.
To Civil Society Organizations Be a company that is keenly alert to its social responsibilities and undertakes appropriate communication.
To Government Agencies Be a company that implements compliance fully and makes positive contributions for the benefit of the countries and local communities where it is undertaking its projects.

Initiatives

Communication with Customers

One of the SMM Group’s greatest strengths is our relationships of trust with our customers. As nearly all of the products handled by the SMM Group are various kinds of fundamental raw materials that have a significant effect on the performance and quality of the products manufactured by our customers, so it is crucial we maintain appropriate communication in a timely manner from the time of taking an order, through to manufacture, delivery, and follow-up after the customer has received the product. We are responding to changes in the market environment, including globalization, while also taking a long-term perspective to sincerely meet our customers’ needs. In regard to new product development, we maintain close communication, not only between market-leading customers and our business divisions, but also between different organizations and employee ranks, in order to build relationships of trust.
On the other hand, recently companies in our supply chain have been showing growing interest in CSR activities and where materials and raw materials are derived from, particularly in regard to conflict minerals. We strive to communicate with our customers in an appropriate manner by disclosing information through our website and Integrated Report.

Communication with Shareholders

The SMM Group strives to provide our shareholders and people who are considering purchasing shares with the information we think they need in a timely, appropriate, fair, and easy-to-understand manner.
On our website, we share our growth strategy, primarily through business descriptions, business results, financial information, and 3-year business plans, as well as the progress being made on this strategy. We deliver reports to shareholder twice a year and report on financial results and the progress of management strategies.
We have also formulated an IR Policy to ensure IR activities are implemented appropriately, which is publicly available on our website. Twice a year, after the announcements of our yearly financial results and financial results for the second quarter, the president briefs institutional investors and securities analysts directly. Since fiscal 2018, general managers also give briefings on their respective divisions at the briefing after the announcement of second quarter financial results. SMM released online video of the president explaining Vision for 2030 in conjunction with its launch in March 2020, amid the COVID-19 pandemic, and also explaining the financial results for fiscal 2019, in May 2020.
We also strive to actively disclose IR information for individual investors through our website. We will continue working to win the trust and meet the expectations of all stakeholders, including our shareholders.

Communication with Local Communities and NGOs

When the SMM Group starts and continues businesses in specific areas, we think a major prerequisite to the continuation of said business is co-existence with the local community through the building of relationships of trust. A contributing factor to this is mutual understanding achieved through communication and contributions that benefit the local community. We work to raise the direct contribution we make to the local economy through measures such as recruiting from areas surrounding our business site and procuring from local suppliers, and we also contribute to improving the lifestyles of these communities, particularly in emerging nations, by providing infrastructure such as roads and ports, and building and operating public facilities such as schools, hospitals, and marketplaces. When implementing these measures, we establish opportunities for regular communication with local communities and move forward while also checking the requirements of local citizens. Additionally, twice a year we hold exchanges of opinion with the international environmental NGO Friends of the Earth Japan (FoE Japan) regarding their findings on topics such as the water quality of rivers around Coral Bay Nickel Corporation and Taganito HPAL Nickel Corporation plants in the Philippines, and we implement necessary improvement measures that reference the group’s opinions and recommendations.

Initiatives to Take on Issues and Provide Improvements

The SMM Group will continue striving to share information in a fair manner with all stakeholders through transparent, timely and appropriate information disclosure carried out by releasing various reports, holding briefings, and issuing press releases. Meanwhile, in line with our goal of becoming the world leader in the non-ferrous metals industry, in March 2020 we showed our intention to achieving this with a revised company logotype, and newly developed tagline and logo. We will work to widely spread understanding and gain acceptance of this move within SMM Group and beyond. Also, in regard to our involvement in the international community, as a member of the International Council on Mining and Metals (ICMM), we comply with the ICMM 10 Principles and we also agree with the purpose of the Extractive Industries Transparency Initiative (EITI), which aims to encourage the development of countries from which mineral resources are extracted, and we support its activities. (See details of ESG Data Book 2020 on p. 13.)