Human Rights in the Supply Chain
Approach and Policy
In our supply chains, we monitor risk related to human rights and labor, compliance, quality assurance, and environment and local communities based on international standards and in accordance with the SMM Group Responsible Sourcing Policy. Should any issues occur, they are corrected. In regard to the sourcing of minerals in particular, we carry out activities with respect to OECD guidances and in accordance with the SMM Group Responsible Mineral Sourcing Policy.
Vision for 2030, KPIs, Results, and Action Plans
Vision for 2030: A company that undertakes responsible sourcing across the supply chain
Promote responsible sourcing, particularly responsible mineral sourcing
|KPIs (Indicators and Goals)||Results||Issues||FY2021 Action Plan|
|1. Responsible mineral sourcing
1) Establish a responsible mineral sourcing management system in line with international standards by the end of FY2021
2) Zero mines or smelters and refineries complicit in child labor or other infringements of human rights in the supply chain
|At Niihama Nickel Refinery and Harima Refinery, we received third-party audits for responsible mineral sourcing.||Responsible mineral sourcing activities that are expanding in areas such as minerals targeted and scope of risk need to be objectively checked.||Acquire third-party certification according to standards set by an international organization for the Group’s main metals products.|
|2. Responsible sourcing
1) Business partners that have received and agreed with the SMM Group Responsible Sourcing Policy: 100% by the end of FY2030
2) Establish a responsible sourcing management system in line with international standards by the end of FY2024
3) Continue implementing due diligence (DD)
|We established the SMM Group Responsible Sourcing Policy and extended it to our main suppliers. Out of these suppliers, 99% agreed with the policy.||Establish management systems in line with international standards and carry out due diligence.||Investigate suppliers as part of due diligence in line with international standards.|
Responsible mineral sourcing framework advanced by the Responsible Minerals Initiative (RMI), an international initiative for responsible mineral sourcing
For supply chains that cover a lot of area from upstream to downstream, this framework enables effective responsible mineral sourcing by using smelters and refineries, which are relatively few in number, as the dividing point for upstream and downstream initiatives.
SMM Group Responsible Sourcing Policy
The SMM Group carries out sourcing activities that take into account human rights and labor, compliance, quality assurance, and environment and local communities based on the SMM Group Corporate Philosophy.
Formulating Sourcing Policy and Extending These to Suppliers
The SMM Group Responsible Sourcing Policy was established and announced in April 2020 to clarify our Group stance toward building a sustainable supply chain that takes into consideration social issues such as human rights and environ-mental issues in all aspects of our sourcing activities.
Not only do our Group officers and employees thoroughly comply with this policy, we ensure all our suppliers also understand this policy.
In FY2020, we requested agreement with the policy from both suppliers that account for 90% of procurement costs and important suppliers to business divisions and business sites, for a total of 305 companies. As of the end of FY2020, 99% of these suppliers had agreed.
We will continue to build a due diligence framework based on this policy.
SMM Group Responsible Mineral Sourcing Policy
Pursuant to the SMM Group Policy on Human Rights, we do not buy minerals that may be associated with human rights violations such as child labor or forced labor, environmental destruction, illegal mining, or corruption, or minerals that may be used as a source of funding for armed groups or other such organizations. We respect the guidance established by the OECD regarding mineral sourcing, and we exercise appropriate influence over suppliers as we work for responsible mineral sourcing throughout the entire supply chain.
- Policy on Conflict Materials in Gold / Silver Smelting(PDF:68KB)
- Sumitomo Metal Mining Responsible Gold and Silver Guidance Compliance Report(2022.7.15)(PDF:942KB)
- Policy on Responsible Sourcing of Cobalt Raw Materials(PDF:91KB)
- Due Diligence Report for Responsible Sourcing of Cobalt Raw Materials(2022.6)(PDF:360KB)
- RMAP Assessment Summary Report - Harima Refinery(PDF:145KB)
- RMAP Assessment Summary Report - Niihama Nickel Refinery(PDF:143KB)
Responsible Mineral Sourcing
Minerals mined from the Democratic Republic of the Congo and nine surrounding countries (tin, tantalum, tungsten and gold (3TG)) are subject to tighter regulations as “conflict minerals” that serve to fund armed groups and child labor, forced labor and other human rights violations, and supply a catalyst for the expansion and prolonging of conflict.
In recent years, due to rising public demand, the list of minerals subject to regulation has been expanded to include cobalt, copper, and nickel among others, and the scope of risks that should be addressed also includes environmental and community risks in addition to human rights.
To ensure that the smelting and refining of gold at SMM does not make use of these conflict minerals, since FY2012, we have been operating in accordance with guidance from the London Bullion Market Association (LBMA) and undergo periodic third-party audits. In FY2018, we also began operating in accordance with guidance from the LBMA with respect to silver.
Furthermore, in March 2020, two of our business sites that produce cobalt (Niihama Nickel Refinery and Harima Refinery) received third-party audits in accordance with RMI* standards.
Going forward, we will ensure that other responsible mineral sourcing initiatives at business sites that produce our main metal products, such as copper and nickel, are inspect-ed from an objective perspective.
Additionally, when the Smelting and Refining Business selects a new mine as a supplier, we assess how that mine carries out environmental management, including management of water resources and tailings dams. In FY2020, there were no new suppliers selected.
Responsible Minerals Initiative (RMI): An international initiative on the responsible sourcing of minerals by the Responsible Business Alliance (RBA), an organization founded in 2004 for the purpose of promoting a common code of conduct in the world’s electronic equipment industry.