Sustainability

Vision for 2030

We have formulated the Vision for 2030 as a milestone for achieving our long-term vision of Becoming the World Leader in the Non-Ferrous Metals Industry.

Long-term vision and Vision for 2030

Drawing on its corporate philosophy and management vision, the SMM Group will expand its growth potential and sustainability by securing resources and providing non-ferrous metals, battery materials, advanced materials, and other high-quality materials in an effort to enhance its company value and achieve its long-term vision of becoming the world leader in the non-ferrous metals industry. Vision for 2030 specifies concrete milestones indicating KPIs and deadlines toward achieving this long-term vision.
In formulating Vision for 2030, we assessed and reflected on our Group¨s Vision for 2020, taking societal changes into account, and sorted the material issues that need to be addressed by 2030. Vision for 2030 and KPIs* were deliberated for the 11 material issues identified, and formulated and released in March 2020.

Long-term vision World Leader in the Non-Ferrous Metals Industry
  • Have a global presence in terms of mineral resource interests and metal production volumes (be in the global top five)
  • Have leading technology and a unique business model that cannot be easily emulated by other major mineral resource companies
  • Be growing sustainably and stably producing a certain amount of profit
  • Be actively tackling social issues such as the SDGs
  • Have employees working with spirit

Material Issues and SDGs

In formulating Vision for 2030, we have kept firmly in mind the SDGs with close affinity to our corporate philosophy and vision. The results of our work to evaluate issues and connect them with SDG targets are shown in the diagram below. We set the 12th SDG, ^responsible consumption and production, ̄ as our most important goal, as this goal indicates our approach toward all issues and directly connects to our management vision.

11 Material Issues and our Vision

1. Effective Use of Non-Ferrous Metal Resources
A company that generates resources through high technological capabilities
2. Climate Change
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)
3. Significant Environmental Accidents,
4. Biodiversity
A company that values water resources and biodiversity, and protects the richness of the sea and land
5. Employees¨ Occupational Health and Safety
A company where all employees work together with safety first the priority in a comfortable working environment as well as safe facilities and operations
6. Diverse Human Resources
7. Development and Participation of Human Resources
A company where all employees can take a vibrant and active part
8. Engagement with Stakeholders
A company that is appreciated and understood to be the world leader in non-ferrous metals
9. Co-Existence and Mutual Prosperity with Local Communities
A company that contributes to regional development and earns trust as a member of the local community
10. Rights of Indigenous Peoples
A company that understands and respects the traditions and culture of indigenous peoples
11. Human Rights in the Supply Chain
A company that undertakes?responsible?sourcing across the supply chain
The Process of Formulating Vision for 2030

STEP1

Vision for 2030: Began Deliberations (December 2017)

The CSR Committee (Current Sustainability Committee) convened and identified 2030 as the next target. Based on deliberations among officers in February 2018, the CSR subcommittees (Current 7 Sustainability Subcommittee) began deliberations toward Vision for 2030.

STEP2

Review of Vision for 2020 (FY2018)

As we approach its target year, achievement evaluation was conducted for the goals and KPIs set for each focus area regarding Vision for 2020.

STEP3

Identification of Sustainability Issues (FY2018)

Having summarized outlooks for conditions in 2030 by the OECD and other organizations and international guidelines* such as International Council Mining and Metals (ICMM) and Global Reporting Initiative (GRI) Standards, and having identified 89 sustainability issues, we worked to connect these issues with closely related SDG targets.

STEP4

Identification of material issues through evaluation of the materiality of sustainability issues(October 2018 C March 2019)

To identify material issues from the identified 89 issues, we began evaluations on two axes: evaluation by CSR subcommittees from social perspectives and evaluation by business divisions from business perspectives. As standpoints for evaluation, first we considered the extent of impact on society (economy, the environment, human rights, etc.) from both positive and negative perspectives. For example, the advancement of the mining and the smelting and refining businesses have negative impact to the environment and climate change. On the other hand, the recycling of batteries and the development of products contributing to a low-carbon society can have positive impacts.
In considering the impacts, we referred to issues identified through stakeholder engagement with customers, business partners, and investors, as well as considered requests toward our Group, organizations we belong to, and the industry.
We then, based on impacts considered, evaluated the risks that threaten to increase if not actively addressed, and the opportunities gained if actively addressed, and evaluated these on a five-step scale.
We further held Vision study sessions for a total of 21 young managerial track employees in general positions and 20 factory leaders in the Besshi District and utilized their opinions in our evaluations. As a result, we identified 11 issues with an evaluation of ^5 ̄ from both social and business perspectives. Further, in March 2019, the CSR Committee ultimately identified 11 material issues based on opinions exchanged with outside CSR experts.

STEP5

Examination of the Vision and KPIs (April - July 2019)

The CSR subcommittees began deliberations on the Vision and specific KPIs in response to the 11 material issues. Based on the examination of the CSR subcommittees, further examinations were conducted during an officers¨ retreat attended by all executive officers and Audit & Supervisory Board members, with final examinations made by the CSR Committee.

STEP6

Formulation and release of Vision for 2030 (December 2019 C March 2020)

The CSR Committee deliberated the material issues, Vision for 2030, and KPIs, which, following further deliberation and resolution by the Board of Directors, led to its announcement in March.

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You can find detailed numerical targets for the 11 Material Issues here.