Vision for 2030 and Material Issues

11 Material Issues and our Vision

1. Effective Use of Non-Ferrous Metal Resources

Non-ferrous metals are natural resources that find use in many areas of society. By stably supplying these metals, we will contribute to the development of a sustainable society.
At the same time, technology for the creation of value from unused resources and for recovering and recycling metals from hard-to-process resources are also crucial for making effective use of limited natural resources.

Vision, KPIs and goals

A company that generates resources through high technological capabilities

  1. A company that stably provides non-ferrous metals to society
  2. A company that contributes to society by effectively using impurities through collaborative, open technological development among industry, academia, and government
  3. A company that contributes to the construction and maintenance of recycling systems for non-ferrous metals
  4. A company that develops and supplies highly advanced materials that contribute to the resolution of social issues
KPIs goals
Advance copper mine projects
  • Strengthen production structure at JV mines to achieve and maintain copper production level of 300 kt/year from interests
  • Achieve steady copper production level by reinforcing exploration of surrounding and deep areas in JV mines, expanding mineral processing technology, and improving operations leveraging IoT and AI
  • Advance Phase 2 and later projects at the Quebrada Blanca Copper Mine
Acquire new superior copper and gold resources
  • Develop new mines for which we have operatorship
Improve productivity by introducing new technology
  • Promote remote operation and unmanned operation of heavy machinery and information infrastructure equipment inside and outside of the Hishikari Mine
Advance nickel ore projects and improve productivity
  • Nickel production: 150 kt/year
  • Yield compared to FY2018: +2%
Develop technology to separate, stabilize and bleed off, and create value from impurities generated by smelting processes and mines
  • Develop technology to retain impurities: Develop and demonstrate the process
Develop technology to create value from unused non-ferrous metal resources
  • Contribute to existing (e.g. marine resource development) and new development projects
Recover non-ferrous metals from hard-to-process resources
  • Participate in business and technology for recovery of lithium from salt lake water with high levels of impurities
Demonstrate and commercialize automotive secondary battery recycling technology
  • Demonstrate, commercialize, and expand scale of recycling technology that recovers cobalt from automotive lithium-ion batteries Commercialization: 2022
Leverage our strengths to create new products and new businesses that contribute to society
  • Research, develop, and commercialize new advanced materials in the fields of energy, automobiles, and information communications
Hold raw materials in-house for favorable and stable procurement
  • Commercialize NiO for fuel cells following demonstration project
Expand sales of low-cost battery cathode materials through favorable, stable procurement of our own nickel raw materials
  • Maintain top class global share in the expanding cathode materials market

2. Climate Change

Within our Group are some businesses that emit large amounts of CO2 and other greenhouse gases (GHGs). Accordingly, we must reduce GHG emissions and contribute to controlling climate change. The progress of climate change has impacts on mine development and on demand for final products. Products contributing to a low-carbon society, such as the battery materials and sunlight shielding inks that our Group provides, contribute to the prevention of global warming.

Vision, KPIs and goals

A company that actively undertakes climate change countermeasures, by reducing emissions and stably supplying products contributing to a low-carbon society, a future with zero greenhouse gases (GHGs)

KPIs goals
Reduce GHG emissions
  • *Continuing to grow our business while maintaining GHG emissions below the level of FY2013.
    Accelerating actions to achieve net zero GHG emissions by 2050 or sooner.
  • Cut GHG emissions intensity by at least 26% compared to FY2013
  • Expand contribution of GHG reduction by products contributing to a low-carbon society: 600 kt-CO2 or more

Revised in December 2021 from ”Keep total GHG emissions below that of FY2013 and formulate a plan to reduce our emissions to zero in the second half of the century”

3. Significant Environmental Accidents, 4. Biodiversity

As business activities have a large impact on surrounding marine and land environments, we must minimize any negative impacts. Initiatives to rationalize the use of precious water resources and to prevent significant environment accidents that can seriously impact biodiversity are especially vital.

Vision, KPIs and goals

A company that values water resources and biodiversity, and protects the richness of the sea and land

KPIs goals
Zero significant environmental accidents
  • Promote improvements through the use of risk and environmental management systems
  • Reinforce and improve equipment and infrastructure to address increases in sources of natural risk
Reduce emissions of hazardous substances (year-on-year)
  • Optimize water use; reduce emissions of hazardous substances to the atmosphere and water
  • Promote various environmental preservation and biodiversity preservation activities, such as regular reforestation

5. Employees’ Occupational Health and Safety

Eliminating work-related loss of life and aftereffects in employees and other related parties is the highest-priority issue in occupational health and safety. A safe and healthy work environment leads to greater trust in the Company and motivation in employees, which in turn leads to increased productivity. In order to better ensure such work environments, we will continue our ongoing initiatives while also promoting the introduction of advanced technologies such as the IoT and AI.

Vision, KPIs and goals

A company where all employees work together with safety first the priority in a comfortable working environment as well as safe facilities and operations

KPIs goals
Prevent occupational accidents
  • Serious accidents: zero (in Japan and overseas, including contractors)
  • All accidents: reduce year-on-year, with aim of eventually zero
Prevent occurrence of occupational diseases
  • Number of workplaces that present higher health risks: reduce year-on-year
  • Occurrence of occupational diseases: zero

6. Diverse Human Resources, 7. Development and Participation of Human Resources

An environment in which diverse human resources can fully demonstrate their capabilities and play active roles under varied work styles is vital to the sustainable growth of a company. We believe that greater diversity creates environments that facilitate innovation.

Vision, KPIs and goals

A company where all employees can take a vibrant and active part

  1. A company that respects the humanity of each and every employee, and where employees feel pride, motivation, and joy in work
  2. A company that provides each and every employee with opportunities to improve his/her capabilities, and grows together with employees
KPIs goals
Promote working style reform and create workplaces that make use of digital technology, letting diverse human resources play vibrant and active roles
  • Improve scores for “Management by top management and superiors,” "Appeal of job," and “Work environment” in employee awareness survey
    (1) Number of female managers: 50 (SMM employees)
    (2) Increase workplaces open to women and improve ratio of female employees (20% or higher at Japanese sites)
  • Expand number of managerial track employees of foreign nationality
  • Percentage of employees with disabilities: 3% or higher
  • Assign jobs and provide support matched to employees’ life stages
Support employees’ mental and physical health
  • Halve the number of people found to require support in stress checks
  • Percentage of employees with abnormal findings indicated in health checkups: 50% or lower
Diversify opportunities to enhance the abilities of employees according to employee needs and work needs
  • Utilize 1-on-1 meetings that bring out the motivation and potential of every employee and boost the growth of subordinates through regular dialogues between superiors and subordinates.
  • Reconstruct the human resources development program (in-house education, external education, etc.) to provide opportunities to employees to enhance their abilities in line with their roles
  • Provide opportunities for self-development matched to each employee’s life plans and needs (correspondence courses, online training, etc.)

8. Engagement with Stakeholders

A company must be accountable for meeting the concerns and expectations of all stakeholders who are impacted by the company’s business activities. As recognition of our Group is generally low, we consider building recognition and understanding of our Group as a first step in dialogues aimed at accountability.

Vision, KPIs and goals

A company that is appreciated and understood to be the world leader in non-ferrous metals

KPIs goals
Further penetrate our Group brand among employees
  • Improve results of employee awareness survey (increase ratio of employees who feel pride in working at the company)
「Ensure quality and quantity in communication of information at the level of “world leader in the non-ferrous metals industry”
  • Earn a high reputation for the integrated report from outside the company (including hearings with shareholders and investors, and improvements in questionnaire and evaluation results)
Increase in recognition and understanding of our goal of “world leader in the non-ferrous metals industry”
  • Improvement in findings of surveys by external bodies (degree of recognition and understanding, etc.)

9. Co-Existence and Mutual Prosperity with Local Communities

Earning a social license to operate in regions where we conduct business is indispensable, particularly in mine development. Along with economic activities such as local procurement and employment, it is important that we contribute to the region’s sustainable development by fostering the next generation and providing support for the disabled and the elderly.

Vision, KPIs and goals

A company that contributes to regional development and earns trust as a member of the local community

Participate in local communities through dialogue and collaboration. Accurately identify local issues through dialogues with local communities, and execute the following measures.

KPIs: Participate in local communities through dialogue and collaboration. goals: Accurately identify local issues through dialogues with local communities, and execute the following measures.
Support the local community via employee participation
  • Implement employee participation programs (from 2023)
Hire and procure locally
  • Continually implement and assess of performance
Support for nurturing of the next generation
  • Implement programs to nurture the next generation in collaboration with government, local bodies, NPOs, etc. (1 or more times/year)
  • Establish and award scholarships in Japan and maintain existing overseas scholarships (from 2023)
Support for people with disabilities and the elderly
  • Implement programs to support people with disabilities and the elderly in collaboration with government, local bodies, NPOs, etc. (1 or more times/year)
Support during disasters
  • Support regions affected by large-scale disasters

10. Rights of Indigenous Peoples

Dialogues with indigenous peoples are important in mine development. These must be carried out on an ongoing basis, with an understanding of the history, traditions, and culture of the peoples.

Vision, KPIs and goals

A company that understands and respects the traditions and culture of indigenous peoples

KPIs goals
Understand indigenous peoples and their traditions and culture
  • Percentage of SMM Group sites implementing in-house education: 100% by end of FY2023
Support initiatives that lead to respect for the traditions and cultures of indigenous peoples
  • Provide scholarships for indigenous peoples (continue existing initiatives)
  • Support indigenous people-related initiatives by NGOs, academic societies, etc.: one initiative or more each year

11. Human Rights in the Supply Chain

Companies must not create human rights violations in the supply chain. Particularly in mineral sourcing, we believe that supplying customers and society with safe products without complicity in human rights violations leads to the sustainable development of business.

Vision, KPIs and goals

A company that undertakes responsible sourcing across the supply chain

KPIs goals
Promote responsible sourcing, particularly responsible mineral sourcing
  • 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
  • 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)