Human Rights in the Supply Chain

Medium-Term Targets and Progress

To achieve our Vision for 2030, we are managing progress for each KPI and have made achievement criteria and action plans for up to 2030.

Promote sustainable procurement, particularly responsible mineral sourcing

1. Responsible mineral sourcing
1) Establish a responsible mineral sourcing management system in line with international standards by the end of FY2021
2) Maintain a record of zero mines, smelters, and refineries complicit in child labor or other infringements of human rights in the supply chain

FY2022 Results FY2023 Plan Final Year of 2021 3-Year Business Plan
(FY2024)		 Final Year of 2027 3-Year Business Plan
(FY2030)
1）
Received third-party audits at nickel smelters and refineries (Niihama Nickel Refinery and Harima Refinery). Responded to requests from battery materials customers in cooperation with the Battery Materials Division and the Non-Ferrous Metals Division
Continued to receive third-party audits at the gold and silver smelter and refinery (Toyo Smelter & Refinery) and the cobalt smelters and refineries (Niihama Nickel Refinery and Harima Refinery) Made plans to undergo third-party audits at the copper smelter and refinery (Toyo Smelter & Refinery)
2）
Zero business partners to our smelters and refineries complicit in human rights infringements
As for external raw materials used in the battery materials and advanced materials businesses, the survey conducted using a standardized supply chain questionnaire revealed that no business partners were involved in human rights infringements 		1）2）
  • Consider acquiring Copper Mark certification for responsible production activities at our copper smelters and refineries
  • In cooperation with target divisions (Battery Materials Division and Advanced Materials Division), plan to establish a due diligence system for procurement of external raw materials in line with international standards
 Achievement Criteria 1）2）
  • Select international standards in response to demands of stakeholders, particularly customers
  • Complete establishment of mineral sourcing management system
 1）2）
  • Maintain mineral sourcing management system
Action Plan 1）2）
  • Exchange information with customers and industry groups
  • Continue to receive third-party audits of smelters and refineries
  • Continue to respond to supply chain questionnaires from customers
 1）2）
  • Exchange information with customers and industry groups
  • Continue to receive third-party audits of smelters and refineries
  • Continue to respond to supply chain questionnaires from customers
  • Update management system as appropriate

Promote sustainable procurement, particularly responsible mineral sourcing

2. Sustainable Procurement
1) Business partners that have received and agreed with the Sumitomo Metal Mining Group Sustainable Procurement Policy1: 100% by the end of FY2030
2) Establish a sustainable procurement management system in line with international standards by the end of FY2024
3) Continue implementing due diligence (DD)

FY2022 Results FY2023 Plan Final Year of 2021 3-Year Business Plan
(FY2024)		 Final Year of 2027 3-Year Business Plan
(FY2030)
1）2）3）
  • Distributed a 15-minute video explaining the SMM Group’s sustainable procurement to major business partners. The video includes an explanation of the Group’s Sustainable Procurement Policy, sustainability-related topics (climate change, responsible mineral sourcing), and a message from top management
  • Five companies were selected from among our major business partners, one from each business division and Purchasing Department, and each company was visited for discussions on sustainability (especially business and human rights)
  • Organized trends on international sustainable procurement management systems. Considered the use of existing platforms such as the Responsible Business Alliance (RBA),2 in light of the status of their use by customer companies
  • Participated in JaCER, which provides a platform as a grievance (remedy) mechanism. (Number of grievances about the Company: 0)
 1）2）3）
  • Consider measures to help business partners gain further understanding of the Group’s sustainable procurement (e.g., update content of explanatory videos, expand target business partners)
  • Continue to have discussions with business partners and other dialogues and consider the use of existing platforms, such as RBA, for due diligence in the supply chain
  • Promote external awareness of our participation in JaCER
 Achievement Criteria 1）
  • Receive agreement from 100% of major business partners
2）
  • Establish sustainable procurement management system
 1）
  • Finalize scope of business partners subject to self-assessment during the 2024 3-Year Business Plan and receive agreement from 100% of those business partners
2）
  • Maintain sustainable procurement management system
Action Plan 1）
  • In cooperation with the in-house related departments, promote understanding of our policy among main business partners by holding briefing sessions, etc. (consider video streaming format)
  • Review scope of business partners
2）3）
  • Consider participation in multi-stakeholder initiatives on due diligence and a grievance mechanism
  • Implement second-party audits of business partners (target: 5 business partners/year)
 1）
  • In cooperation with the in-house related departments, promote understanding of policy extension and receiving agreement among the main business partners (review scope during the 2024 3-Year Business Plan)
2）3）
  • Exchange information with experts and business partners
  • Implement second-party audits (target from the 2024 3-Year Business Plan: 8 business partners/year)
  • Implement due diligence including third-party audits in line with the management system
  • Operate the grievance mechanism in line with the management system

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