Participation in and Declarations of Support for International Organizations
SMM participates in international organizations, issues declarations of support, complies with the organizations’ rules, and supports their activities. As a company in the mining and metal smelting and refining industries, we undertake initiatives for the sustainable development demanded of us.
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.
It is comprised of the world’s biggest mining and metals companies, as well as regional and commodity-focused organizations.
SMM is a member company.
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 SMM Group reflects the ICMM 10 Principles and position statements in the visions and materiality issues of our Vision for
2030.
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
ICMM has set forth the following position statements regarding important individual issues. The SMM Group is committed to complying with these initiatives.
Diversity, equality and inclusion; transparency of mineral revenues; climate change; water stewardship; tailings governance framework; indigenous peoples and mining; mining partnerships for development; mercury risk management; mining and protected areas
Validation of Implementation and Progress of Performance Expectations (PEs)
Within our target sites* for PEs, we have prioritized the sites to undergo third-party validation as follows.
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)
- In FY2022, the Toyo Smelter & Refinery underwent third-party validation.
- Hishikari Mine is scheduled to undergo verification in FY2023, and Niihama Nickel Refinery in FY2024.
- Defined by ICMM as operations involved in the production or refining of minerals and metals for sale or further processing.
■ Self-Assessment Results for the Entire Company (conducted in 2022)
| Outcome1 | Total | |||
|---|---|---|---|---|
| Meets | Partially Meets | Does not meet | N/A | |
| 14 | 14 | 22 | 0 | 30 |
- 1.Each 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 - 2.Items 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
There is no clear policy for the Group regarding the exploration and development of mines in World Heritage sites, so. we will consider such a policy. Currently, the Group does not conduct any mining exploration or development in the World Heritage sites
Extractive Industries Transparency Initiative (EITI)
We agree with and have declared our support for the aims of the Extractive Industries Transparency Initiative (EITI).*
- 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 development that leads to growth and the reduction of poverty.
EITI Principles
- 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.
- 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.
- We recognise that the benefits of resource extraction occur as revenue streams over many years and can be highly price dependent.
- 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.
- We underline the importance of transparency by governments and companies in the extractive industries and the need to enhance public financial management and accountability.
- We recognise that achievement of greater transparency must be set in the context of respect for contracts and laws.
- We recognise the enhanced environment for domestic and foreign direct investment that financial transparency may bring.
- We believe in the principle and practice of accountability by government to all citizens for the stewardship of revenue streams and public expenditure.
- We are committed to encouraging high standards of transparency and accountability in public life, government operations and in business.
- 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.
- We believe that payments’ disclosure in a given country should involve all extractive industry companies operating in that country.
- 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 organisations, financial organisations, investors, and non-governmental organisations.
