Initiatives Related to Sustainable Procurement

The SMM Group aims to build a sustainable supply chain by asking major business partners (including local suppliers*) to consent to our Sustainable Procurement Policy, requesting responses to a questionnaire, distributing videos explaining the Group’s sustainable procurement initiatives, and visiting business partners.

Requesting for Consent to the Procurement Policy

In April 2020, we established and announced the SMM Group Responsible Sourcing Policy (currently the Sumitomo Metal Mining Group Sustainable Procurement Policy; hereinafter “the Procurement Policy”), to clarify the Group’s stance of working to build a sustainable supply chain with consideration of human rights, the environment, and other social issues in all of our procurement activities.
While ensuring thorough compliance with the Procurement Policy by the Group’s officers and employees, we also request the understanding of our business partners. In FY2020, we asked major business partners to consent to the Procurement Policy, in response to which approximately 99% of those business partners have stated their consent.

Request for Responses to Survey on Sustainable Procurement

We prepared a survey on sustainable procurement in FY2021 and sent this survey to our major business partners who consented to our Procurement Policy, requesting their responses. The survey consisted of 38 questions based on each item of the Procurement Policy (human rights and labor, compliance, quality assurance, and environment and local communities) and the results of the survey were tabulated, having received responses from 98% of our business partners. The responses reveal that S, A, and B evaluations (the highest of the five levels of evaluation) accounted for about 85% of overall evaluations, confirming that many business partners are advancing initiatives related to sustainability. For those business partners that received a C or D rating, we plan to provide them with a better understanding of their own situation, and we will cooperate with them by offering advice and other measures to help them improve their efforts.

Distribution of Videos Explaining the SMM Group’s Sustainable Procurement

A video explaining the Group’s sustainable procurement initiatives was distributed in FY2022 to major business partners who have consented to our Procurement Policy. The video includes explanations of the SMM Group’s Sustainable Procurement Policy, sustainability topics (climate change, responsible mineral sourcing), and a message from top management. In a survey conducted after viewing the video, 95.5% of the respondents answered that the content was “easy to understand.” They commented that the video helped them better understand the Group’s initiatives and provided reference for their own initiatives.

Exchange of Opinions with Business Partners on Sustainability

We selected five of our major business partners, one from each business division and Purchasing Department, to exchange opinions on sustainability (especially concerning business and human rights) in FY2022 based on their responses to a survey on sustainable procurement conducted in FY2021. In addition to hearing about their actual situations, we exchanged opinions about effective activities while introducing the initiatives of the SMM Group.