Sustainability Report 2023

Introduction

Contents  1  1

Introduction
Editorial Policy  2	The Sumitomo Business Spirit and the SMM
Group Corporate Philosophy  3

Editorial Policy GRI 2-1/2-2/2-3/2-5
74
76

Business and Human Rights

80	Employees’ Occupational Health and Safety86	Diverse Human Resources / Development andLong-Term Vision  4	Sustainability at the Sumitomo Metal Mining

SocialParticipation of Human Resources
110	Co-Existence and Mutual Prosperity with Local

Group

Communities  6	Sustainability Issues in the Value Chain

116

  8

120	Human Rights in the Supply Chain

SMM Group Overview

Rights of Indigenous Peoples

10	SMM Group Business Model

124

Engagement with Stakeholders

12

138

Research & Development

139

Intellectual Property

Our History142	Social Data

The Sumitomo Metal Mining Group Sustainability Report 2023 aims to report on our Group’s basic approach to theachievement of a sustainable society, our promotion structure and KPIs for achieving Vision for 2030 with respect tomaterial issues, the results of our activities in FY2022, and our future plans.
The report describes our Group’s sustainability-related activities within the framework of environment, society, andgovernance, along with the positive and negative effects on society of our Group’s business activities and our initiatives
to achieve a sustainable society. As tools for engagement with all stakeholders, we followed the Mining Principles of theInternational Council on Mining and Metals (ICMM) to which we belong and made reference to requirements and disclosures under the GRI Standards, in order to disclose information in line with international guidelines. We also disclose
information on climate change in accordance with the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD).
Through this report, we seek to enhance understanding of our Group’s sustainability activities, to invite wide-ranging
comments from stakeholders, and to enhance our activities and information disclosure in the future.

Scope of the Report

Independent Assurance

Sumitomo Metal Mining Co., Ltd. (SMM)

We have received independent assurance from KPMG AZSA Sustainability
Co., Ltd. regarding performance data and other data in this report. This
report is issued following prior confirmation by our president of thereport’s content and of the receipt of independent assurance. Indicators
subjected to assurance are noted by the symbol.

The Sumitomo Metal Mining Group (SMM and consolidated subsidiaries)

16
16

Sustainability Management
Message from the President

20	Sustainability Management at the Sumitomo

Economic Topics: SMM, consolidated subsidiaries and equity-method
affiliates

162

GovernanceSocial Topics1: SMM and consolidated subsidiaries

164

Corporate Governance

Metal Mining Group

176	Compliance24

Positioning of Vision for 2030

180

Tax Governance26

Vision for 2030 – Formulation Approach

182

Risk Management28	Vision for 2030, Material Issues, KPIs
(Indicators and Goals)

Environmental Topics1, 2: SMM, consolidated subsidiaries and equitymethod affiliates (28 companies)186	Quality Assurance
192

Information Security

1. Our environmental and occupational health and safety reporting covers our consolidated subsidiaries as well as business sites that have been determined to present major impacts
2. Scope: Companies marked with an asterisk in the list of companies on pages 8, 9
and Sumiko Tec Co., Ltd., which the Company sold in November 2022
Period Covered

Japan: April 1, 2022–March 31, 2023
Overseas: January 1, 2022–December 31, 2022
(Some activities before or after the following periods have also been
included)Referenced Guidelines• GRI’s Sustainability Reporting Standards• Task Force on Climate-related Financial Disclosures: TCFD
• Corporate Sustainability Reporting Directive: CSRD
Publication Date

December 2023 (published once a year)
Inquiries

Sustainability Department, Sumitomo Metal Mining Co., Ltd. 11-3,
Shimbashi 5-chome, Minato-ku, Tokyo 105-8716, Japan
Tel: +81-3-3436-7901

Corresponding GRI Sector Standards

196

External Assessments and Awards

32	Effective Use of Non-Ferrous Metal Resources

198	Independent Assurance Report

40

Environmental Management

200

42

Climate Change

GRI Content Index

52	Significant Environmental Accidents /Biodiversity
70	Environmental Data
About the icons used in this report
Link to relevant page in the report
Link to external site
Link to PDF fileMining, Metal processing
We plan to disclose information in line with the Sector Standards from FY2024

Information Disclosure Framework

Sustainability Information
Sustainability Report Corporate Governance Report*
 Corporate Website (Sustainability)https://www.smm.co.jp/en/sustainability/

Investors
Integrated Report Progress of Business Strategy
 IR-Day Corporate Website (Investors)


Annual Securities Report*
Integrated Report*
 Shareholder Communications
Financial (corporate value)

Environment

References

Non-financial (social value)

30

196

https://www.smm.co.jp/en/ir/* Timely disclosure and legal disclosure are indicated by an asterisk

Disclaimers

About future projections, etc.

The sums of some data may not match reported totals due to rounding. In
addition, some values from previous fiscal year reports may have been revised
following reviews of the data.
In this report, CBNC and THPAL are acronyms for Coral Bay Nickel
Corporation and Taganito HPAL Nickel Corporation, respectively.
Also, unless otherwise stated, the term “ton” refers to a metric ton.

Future projections, etc. in this report are based on information available to theCompany at the time of writing and incorporate risks, uncertainties, and otherfactors.
Accordingly, future business results may differ from content in this report.

SUMITOMO METAL MINING CO., LTD.

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Introduction

 Introduction

The Sumitomo Business Spirit and the SMM Group Corporate Philosophy

The Sumitomo Business SpiritLong-Term Vision

Become the world leader in the non-ferrous metals industry

Article 1

Sumitomo shall achieve strength and prosperity by placing prime importance on
integrity and sound management in the conduct of its business.

As the world leader in the
non-ferrous metals industry
we are aiming to

Article 2

Sumitomo shall manage its activities with foresight and flexibility in order to cope
effectively with the changing times. Under no circumstances, however, shall it pursue
easy gains or act imprudently.
(Quoted from the Sumitomo Goshi Kaisha Administrative Regulations, named “Summary of Business Operations”, formulated in 1928)

SMM Group Corporate Philosophy
Sumitomo Metal Mining Co., Ltd. (SMM), in accordance with the Sumitomo Business Spirit, shall, throughthe performance of sound corporate activities and the promotion of sustainable co-existence with theglobal environment, seek to make positive contributions to society and to fulfill its responsibilities to its
stakeholders, in order to win ever greater trust.

2

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

 ave leading technology and a unique business model that cannot be easily emulated byHother major mineral resource companies Grow sustainably and stably produce a certain amount of profit
 Actively tackle social issues such as the SDGs
 Have employees work with spiritNickel (Ni)Copper (Cu)Annual production capacity ofAnnual production interest of

150 kt300 ktGold (Au)Materials

Participation in new mine
operations through theacquisition of superior interest

Annual profit before tax ofLong-Term Vision25

billion¥through portfolio management

Becomethe World Leader
in the Non-Ferrous
Metals Industry

ProfitAnnual profit attributable to owners of parent of¥Corporate value

150 billion
Vision for2030

SMM Group Management Vision
Based on the principles of compliance, environmental protection and operational safety, SMM Group shallpursue maximum corporate value through the securing of resources and the provision of high-quality
materials such as non-ferrous metals and advanced materials via its global network.

Have a global presence in terms of mineral resource interests and metal production volumes(= be in the global top five)

Targets of our Long-Term Vision

SMM shall, based on respect for all individuals and recognizing each person’s dignity and value, seek to bea forward-minded and vibrant company.

By improving technical capabilities, we shall fulfill our social responsibilities as a manufacturing enterprise.

GRI 2-22

Vision for2020

Growth potential

P.28-29

Sustainability

SMM Group Corporate Philosophy, SMM Group Management Vision

SUMITOMO METAL MINING CO., LTD.

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Introduction

 Introduction

Sustainability at the Sumitomo Metal Mining Group

Our Group carries forward the mine operation and the smelting andrefining that have been Sumitomo’s original businesses since 1590,
placing the Sumitomo Business Spirit at the center of our corporate
conduct. Article 1 of the Sumitomo Business Spirit states that wevalue the trust of society and mutual relationships, and that we willaddress all matters with integrity. As mining must be conducted
where the targeted natural resources are present, typically in projects
that span years or even decades, mine operation in particulardemands that we build and maintain relationships of trust with varied stakeholders in areas of operations as a prerequisite for the continuity of our business.
Based on the Sumitomo Business Spirit, our Group’s Corporate
Philosophy calls for co-existence with the global environment andsociety. It sets out ways of building and maintaining the relationshipsof trust indicated in the Sumitomo Business Spirit, and advocates
respect for all individuals to achieve a forward-minded and vibrantcompany.
The Sumitomo Metal Mining Group Sustainability Policy describes
our stance in working toward the sustainability that are pursuingthrough co-existence with the global environment and society andrespect for all individuals. The policy clearly positions contribution to
the sustainable development of society as an issue for our management, and further defines the aim of our sustainable growth asenhancing the degree of our contribution and ensuring its sustainability. This is in accordance with “Benefit self and benefit others, private and public interests are one and the same,” the spirit that
Sumitomo has inherited, meaning that Sumitomo’s business must
benefit the nation and society, and emphasize harmony with the
public interest.
We have specified issues to be given priority in achieving our
Sustainability Policy, identifying these as material issues. We also set
out the evaluation that we seek to earn from society through our initiatives to tackle these material issues, in the form of Vision for 2030.
In this way, our Group’s stance toward sustainability takes co-existence with the global environment and society and respect for all
individuals as its philosophy. Placing value on social trust and mutual
relationships, we seek to balance the sustainable development ofsociety with sustainable growth for our company.

Sumitomo Business Spirit

SMM Group Corporate Philosophy
Co-existence with the global environment and society

Respect for all individuals

Globalenvironment

Society

PeopleEffective Use of Non-Ferrous Metal Resources

Co-Existence and Mutual Prosperity with
Local Communities

Employees’ Occupational Health and Safety

Climate Change

Rights of Indigenous Peoples

Diverse Human Resources

Significant Environmental Accidents

Human Rights in the Supply Chain

Development and Participation of
Human Resources

Biodiversity

Engagement with Stakeholders

Sumitomo Metal Mining Group Sustainability Policy
Contributing to sustainable development of society and realizing sustainable growth for our company

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SUMITOMO METAL MINING CO., LTD.

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SUMITOMO METAL MINING CO., LTD.

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Introduction

 Introduction

Sustainability Issues in the Value Chain GRI 2-6/3-1

Within the value chains of our Group’s businesses, we mapped out sustainability issues in terms of their potential impacts on society. In mapping sustainability issues, we made reference to matters concerning material issues described in the “Global
Reporting Initiative (GRI) Sector Standard for Mining”.*

Business Value Chain
Suppliers

SMM Group

Business activities

Procurement

Research &development

Manufacture, saleand other activities(management of
decommissioned andclosed mines, etc.)

Process andmanufacture offinished products

Usage

Disposal

Employees on our
supply chain

Employees of
the SMM Group

Employees ofcustomers andcontractors

Consumers and users

Local communities
andindigenous peoples

GHG emissions

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Climate adaptation and resilience

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Air emissions

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Biodiversity

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Waste

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TailingsWater and effluents

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Closure and rehabilitation

Sustainability Issues: Impacts on Society(Referred to the “Global Reporting Initiative (GRI)
Sector Standard for Mining.”)

Economic impacts

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End users

Stakeholders affected by the SMM Group

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Rights of Indigenous Peoples

Land and resource rights

Artisanal and small-scale mining

Security practices and human rights

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Critical incident management

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Occupational health and safety

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Employment practices

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Child laborForced labor and modern slavery

Freedom of association and collective bargaining
Non-discrimination and equal opportunity

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Anti-corruption

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Payments to governments

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Public policy

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Local communities

Conflict-affected and high-risk areas*

Customers

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Global Reporting Initiative (GRI) Sector Standard for Mining
https://www.globalreporting.org/standards/standards-development/sector-standard-project-for-mining/

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SUMITOMO METAL MINING CO., LTD.

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SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

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Introduction

 Introduction

SMM Group Overview (As of March 31, 2023) GRI 2-2/2-6

Cote (in development)(36.7%)SMM Korea Co., Ltd.
Jinlong Copper Co., Ltd. (27.1%)

 Besshi-Niihama District Division
Toyo Smelter & RefineryNiihama Nickel Refinery
Shisaka Smelting Co., Ltd.
Isoura Plant
Niihama Electronics Co., Ltd.
 Niiham Research Laboratories Battery Research Laboratories

Sumiko Kunitomi
Electronics Co., Ltd.

Morenci (25.0%)

Shanghai Sumiko Electronic Paste Co., Ltd. (69.0%)
Sumico Lubricant Trading (Shanghai) Co., Ltd.

SMM Precision Co., Ltd.
GRANOPT CO., LTD. (51%)

Taiwan Sumiko Materials Co., Ltd.

Dongguan Sumiko Electronic Paste Co., Ltd. (85.0%)
SMM Vietnam Co., Ltd.

Shinko Co., Ltd.

 Nickel Asia Corporation (26.5%)

Coral Bay Nickel Corporation (84.4%)

Sumiko Energy
Materials Co., Ltd.

Harima Refinery

Taganito HPAL Nickel Corporation (75.0%)

 me DistrictO
Division Materials
Laboratories



NagoyaBranchOsaka Branch

Cerro Verde (16.8%)
FIGESBAL SA (25.5%)

Quebrada Blanca (in development)(25.0%)

Ichikawa Research Center

Hyuga Smelting Co., Ltd. (60%)

Northparkes (13.3%)
Candelaria (16.0%)
Ojos del Salado (16.0%)
Mineral Resources Segment	

Copper  Gold

Smelting & Refining Segment	

Copper  Nickel  Hishikari Mine hkuchi Electronics Co., Ltd.
O
Ohkuchi Materials Co., Ltd. (95%)

Other
Materials Segment 	* The location of the head office is shown for eachgroup company in Japan52

1

Equity-method Affiliates

13 District Divisions 80
2

1. Included in two other group companies shown in this page

 Equity-method affiliates* Included in the boundary of the environmental performance data

Japan
Sumitomo Metal Mining Co., Ltd.*

Mineral Resources

Corporation (Philippines) Dongguan Sumiko Electronic Paste Co., Ltd. (China)* Sumitomo Metal Mining Management (Shanghai) Shanghai Sumiko Electronic Paste Co., Ltd. (China)*

Co., Ltd. (China)(China) Sumico Lubricant Trading (Shanghai) Co., Ltd. (China) Granopt Optics Trading (Shenzhen) Co., Ltd. (China)
 Shinko Trading (Zhong Shan) Co.,Ltd. (China) Coral Bay Nickel Corporation (Philippines)* Taiwan Sumiko Materials Co., Ltd. (Taiwan)* Nickel Asia Corporation (Philippines) SMM Korea Co., Ltd. (South Korea) Sumiko Resources Exploration & Development Co., SMM Precision Co., Ltd.*N iihama Electronics Co., Ltd.* Taganito HPAL Nickel Corporation (Philippines)* SMM Vietnam Co., Ltd. (Vietnam)* N.E. Chemcat Corporation

N ippon Ketjen Co., Ltd.* Ohkuchi Electronics Co., Ltd.*Other Ohkuchi Materials Co., Ltd.* MS Zinc Co., Ltd.
 Shisaka Smelting Co., Ltd.* Sumiko Logistics Co., Ltd.* Hyuga Smelting Co., Ltd.* Mitsui Sumitomo Metal Mining Brass & Copper Co.,Ltd.

SUMITOMO METAL MINING CO., LTD.

 Igeta Heim Co., Ltd.* SMM Exploration Corporation (U.S.A.) Jinlong Copper Co., Ltd. (China)

 S umitomo Metal Mining Siporex Co., Ltd.* Acids Co., Ltd.

 SMMA Candelaria Inc. (U.S.A.)

Materials

Materials

Smelting & Refining

Mineral Resources Sumitomo Metal Mining Philippine Holdings

Smelting & Refining Sumitomo Metal Mining (Hong Kong) Co., Ltd.

Sicoxs Corporation

North America

Mineral Resources
Ltd.

8

Asia
 Cordillera Exploration Company Inc. (Philippines)

2. District divisions refer business sites at certain locations which have workers and equipment, and mainly conduct production and research and development activities, provide support andservices for business operations and provide cross-functional management business in a continuous manner (such as Head Office, mines, plants, research centers, branches, business sites
which manage decommissioned and closed mines, sales offices). Consolidated subsidiaries and some equity method affiliates are included.

 Consolidated subsidiaries

N.E. Chemcat Corporation (50%)
Sumitomo Metal Mining Siporex Co., Ltd.

Figures in parentheses indicate percentage interest.
Companies with no percentage written are 100% owned

Consolidated Subsidiaries

Sumico Lubricant Co., Ltd.
Nippon Ketjen Co., Ltd. (50%)

Major Sites of Materials Business Other Major Site / Group Company

Group
CompaniesH ead Office Sumitomo Metal Mining America Inc. (U.S.A.) Sumitomo Metal Mining Arizona Inc. (U.S.A.) SMM Morenci Inc. (U.S.A.) SMM Gold Cote Inc. (Canada) Sumitomo Metal Mining Canada Ltd. (Canada) SMM Resources Inc. (Canada)

Other Regions GRANOPT CO., LTD.* J CO Co., Ltd.* Sicoxs Corporation*

Mineral Resources Quebrada Blanca Holdings SpA (Chile) SMM Cerro Verde Netherlands B.V. (Netherlands) S umiko Technical Service Co., Ltd.* Shinko Co., Ltd.* Compania Contractual Minera Candelaria (Chile) Sumitomo Metal Mining Peru S.A. (Peru) SMMCV Holding B.V. (Netherlands) S umiko Techno-Research Co., Ltd.* Sumiko Energy Materials Co., Ltd.* Compania Contractual Minera Ojos del Salado (Chile) Sociedad Minera Cerro Verde S.A.A. (Peru) S umitomo Metal Mining Engineering Co., Ltd.* Sumitomo Metal Mining do Brasil LTDA. (Brazil)

Smelting & Refining Sumiko Kunitomi Electronics Co., Ltd.* Sumitomo Metal Mining Chile LTDA. (Chile) J apan Irradiation Service Co., Ltd.* SMMQB Holding SpA (Chile) Sumitomo Metal Mining Oceania Pty. Ltd.

 Sumico Lubricant Co., Ltd.*

Sustainability Report 2023

 SMM Quebrada Blanca SpA (Chile) FIGESBAL SA (New Caledonia)(Australia)

SUMITOMO METAL MINING CO., LTD.

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Introduction

 Introduction

SMM Group Business Model GRI 2-6

Business Model—Organic 3-Business Collaboration

MineralResources

Our Mineral Resources Business develops and operates mines in a way that is considerate to the environment and society. Our
Smelting & Refining Business then generates high-quality metal materials from the extracted ores. And, our Materials Business adds
value to these materials that meet the needs of the times. In this way, SMM has a globally unique 3-business collaboration businessmodel in which we operate three businesses — Mineral Resources, Smelting & Refining, and Materials — which collaborate in an
organic way. We are building up competitive capabilities by sharing and utilizing human resources, goods, technology, and information between each business.

Materials

Smelting &Refining

Mineral Resources BusinessSuppliers
Business Partners
Technical andhuman support
Investment(Copper and Gold)

MiningInterest Holders

Ore(Copper and Gold) articipation in planning overseas mine develP
opment and operation



Operation of Hishikari MineSales of copper concentrates

Exploration of new minesAcquisition and transfer of mining interests

Training of mining engineers

Mining andTrading Companies

Ore(Copper and Gold),
Copper Scrap

Interaction of human resources
Sharing of information on
demand for metals

Smelters andRefiners andTrading Companies

Smelting & Refining Business

Steel Dust(zinc)
Investment

Mutual use of technology

Ore

Research & Development

Ore(Copper, Nickel,
Cobalt)Ore(Copper andGold)

Sharing of information onore characteristics(grade, properties, impurities) opper, gold (and other precious metals) smeltC
ing and refiningNickel (Cobalt) smelting and refining

Zinc RecyclingBattery RecyclingTraining of smelting and refining engineers

Metallic materials

Metal Fabricators andTrading Companies

Sharing of information on
the properties of metallic materials(grade, properties, impurities)

Pre-processing
Manufacturers ofWaste Batteries

Usedsecondarybatteries

Metallic
materials

Mutual use of technology
Interaction of human resources
Sharing of information on
demand for metals

Materials Business
Material
Manufacturers andTrading Companies

10

SUMITOMO METAL MINING CO., LTD.

Raw materials

Manufacturing and sales of battery cathodematerials

Manufacturing and sales of advanced materials

Training of materials engineers

Sustainability Report 2023

Smelting & Refining BusinessWe procure copper and gold ores from the market and our Mineral Resources Business, and nickel and cobalt ores from our investment mines for smelting and processing. As for products, metallic materials are sold to metal fabricators and trading companies,
and used for battery cathode materials are supplied to our Materials Business.

Mineral Resources Business

Investment(Nickel)Steel ManufacturingandTrading Companies

Customers
Markets

SMM Group

We invest in copper and gold mines, develop mines with our partners, supply ore to our Smelting & Refining Business, and sellsome of the ore to outside parties. We also own and operate the Hishikari Mine, where we mine gold ore and supply it to our
Smelting & Refining Business.

Batterycathode materials

Advancedmaterials

Battery Manufacturers

Electronic Device
Manufacturers

Materials BusinessIn our battery materials business, we procure metallic materials from our Smelting & Refining Business and other raw materials fromoutside sources, process them into battery cathode materials, and sell them to battery manufacturers. In the advanced materials
business, we have various product groups such as crystal materials, powder materials, and package materials, and we procure raw
materials internally and externally for processing and selling to customers such as electronic device manufacturers.
Competitive capabilities generated by our 3-business collaboration model(1) G reat reduction of procurement risk due to the sharing of resource development regulations, supply and demand trends, andother information(2) P romotion of efficient development of new products, etc. through the sharing of technological information concerning non-ferrous metals and collaborating with customers in the Materials Business(3) A stable supply of highly advanced materials including cathode materials for automobile batteries by collaboration between the
Smelting & Refining and Materials businesses(4) Optimization of characteristics in the materials we supply through collaboration between the Smelting & Refining and Materials
businesses(5) Advancement of knowledge and expansion of mining business opportunities through collaboration between the Mineral
Resources and Smelting & Refining businesses(6) Cutting-edge innovation through the collective wisdom possessed by human resources with diverse backgrounds(7) Building of cyclical systems and expansion of opportunities realized through collaboration between the Mineral Resources,
Smelting & Refining, and Materials businesses(8) Assurance of traceability in terms of quality and the like through a integrated internal supply chain
Recycling
The SMM Group is engaged in various recycling efforts. In the Smelting & Refining Business, we collect steel dust from steel manufacturers and trading companies to produce and sell zinc oxide pellets, which is the raw material for metallic zinc. We also purchasecopper scrap from electric wires and other sources, smelt, refine, and recycle it.
In recent years, as the shift to electric vehicles has rapidly progressed, we have been promoting battery recycling by recovering
nickel and cobalt from used secondary batteries for automobiles in our Smelting & Refining Business, processing them into metallic
materials, and supplying them to our Materials Business to be reused as cathode materials for batteries in our Materials Business. In
addition, we have invented a technology to recover lithium from used secondary batteries. We will continue to promote a variety ofrecycling efforts.

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

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Introduction

 Introduction

Our History

Through a history of over 430 years, we have provided society with the non-ferrous metals that are indispensable
to people’s lives.
Our path toward long-term value creation

The beginning of Sumitomo’s original
business: copper smelting and refining
business

Opening of the Besshi Copper Mine triggers discovery of new value, mineral resources
The Besshi Copper Mine operated continuously for 283 years
from its opening in 1691 and made a huge contribution to
Sumitomo’s development. The opening of the mine presented an opportunity to expand the company’s business toinclude mineral resources business in addition to copper
smelting and refining. The mining technology cultivated at
the Besshi Copper Mine continues to be inherited by SMM’s
Mineral Resources Business as it expands across the globe.

In 1590, the Sumitomo copper business began in
Kyoto as a copper smelting and decorative copperwork operation. By being the first in Japan to perfect a smelting technique known as Nanban-buki
for the separation of copper from silver, Sumitomo
solidified its business foundation.

1500

1600

1700

1800

Adding new metals to the Smelting &Refining and Mineral Resources businesses portfolio
At a time when the importance of gold as aresource was growing, we acquired the management rights for the Kounomai Mine in Hokkaido in
1917. Beginning in 1939, SMM also pioneered andcommercialized the smelting and refining of nickel
in Japan, which had hitherto relied on imports as
nickel could not be smelted domestically.

Entered into the Materials BusinessParticipated in overseas copper mines andacquired interests

In 1960, the electronic materials business was
being watched as a new market, and SMM
began production of germanium dioxide foruse in transistors. Since then, we have continued to provide the market with various electronic materials.

The downsizing of mines in Japan meant that smelting
and refining businesses had to switch to resources procured from overseas. In 1961, SMM signed an investment
and financing contract with Bethlehem Copper Mine,
beginning the company’s involvement with overseas
mines and creating a foothold for the acquisition of mining interests that continues to this day.

Started operation of the Hishikari Mine
With the closure of the Sazare Mine in 1979, the curtain
closed for a time on SMM’s long heritage of mining technology. However, in 1985, operations began at theHishikari Mine and SMM Group’s technology began tochart a new history in a new area. The mine boasted a richgold content ratio, even to date and has become a primary source of profit for the Group, and it also played arole in passing down our mining technology.

1900

Smelting & Refining
Business
Copper smelting
and refining

1590
Started the copper smelting and refining business
Innovation Topic

1 Nanban-buki

In Japan at this time, there was no technology for removing the silver
from copper ore, so copper was sold and exported at copper prices
while it still included silver. Soga Riemon, developed a smelting andrefining technology for separating copper and silver, known as
Nanban-buki. He shared this widely with others in the same business
Nanban-Buki from Kodo Zuroku, Courtesy of the Sumitomo Historical Archives
in Osaka, preventing the loss of wealth.

Mineral Resources
Business

Copper mines

1905
Relocated copper
smelting and refining
from the Niihama coastto the Shisaka Island

1971
Started production at the Toyo Smelter & Refinery
Nickel smelting
and refining

1939
Started the nickel
smelting and refining
business

1691
Opened the Besshi Copper Mine1973
Closed the Besshi Copper Mine
Gold mines

1917
Started the gold minebusiness

1973
Closed the Kounomai Mine
Overseas copper
mines
Kounomai Mine

1961
Investment and financing contract signed for the Bethlehem Copper Mine

Besshi Copper Mine in the
Meiji Period

1979
Closed the Sazare Mine
1985
Started operations at the Hishikari Mine1986
Acquired interest in the Morenci Copper Mine.
Full-scale investment in overseas mines

Materials Business
Materials

Sustainability
TopicsSocialSetting

12

1966
Started lead frame businessAround 1650
Monjuin Shiigaki

1894
Large-scale reforestation operations

1939
Overcoming smoke pollution at Shisaka Island

The Sumitomo Business Spirit, which continues to thisday, has its origins in the Monjuin Shiigaki, written by
the founder of the Sumitomo family, Sumitomo
Masatomo (1585–1652), in his later years to explain Courtesy of the Sumitomo
the merchant’s frame of mind.
Historical Archives

Large-scale reforestation operations started after Iba Teigo, the second
Director-General, became manager of the Besshi Copper Mine. At
peak, more than two million trees were being planted annually and
Courtesy of the Sumitomo Image courtesy of
Mt. Besshi once again overflowed with greenery.
Historical Archives
Sumitomo Forestry Co., Ltd.
The Besshi Copper Mine in the past (left) and today (right)

We realized zero emissions of sulfur dioxide gas, which was a root cause of thesmoke damage, becoming the first in the world to solve the problem of smoke
damage that was afflicting copper smelters all over the globe.

Around 1700

The majority ofNagasaki trade

SUMITOMO METAL MINING CO., LTD.

1960
Entered into the materials
business

Sustainability Report 2023

In the Edo period, about half of all copper produced in Japan for international
trade was exported through Nagasaki. In the year 1698, Sumitomo’s annual production reached about 1,500 tons, a quantity that accounted for one quarter ofJapan’s copper production.
Export box containing copper bars from Nagasaki (model),courtesy of the Sumitomo Historical Archives

Around 1900

The modernization ofindustry

Starting in the Meiji Period, with the growth in demand for communicationslines, wires for electric lighting, and copper alloy fabricated products, domestic
demand for copper increased significantly. The Besshi Copper Mine, which introduced Western-style smelting and refining, supported the industry in Japan.
Besshi Mine Upper Railway, Courtesy of the Sumitomo Historical Archives

SUMITOMO METAL MINING CO., LTD.

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13

Introduction

 Introduction

Our History

Our path toward long-term value creation

Corporate reform since the JCO criticality accident

Return to core business

Promoting the growth strategy

Began to increase the production of battery materials

Long-term vision to become a world leader in the non-ferrous metals industry

In September 1999, a criticality accident occurred at SMM subsidiary, JCO Co., Ltd., which manufactured fuel for nuclear
power generation. This was a turning point in the management of the SMM Group, whereupon it reflected and in 2000
formulated the Corporate Reform Plan. We have thoroughly
fostered and instilled compliance and a culture of safety, andeven though more than 20 years have passed since the accident, we will not forget and will pass the lessons learnt on toyounger generations.

Since FY2002, following the Corporate
Reform Plan, in order to improve our profitability, we have been further promoting
business selection and concentration toreform the business and cost structure of
the SMM Group to build a corporate structure strong enough to withstand international competition even in a severebusiness environment.

From FY2004 onward, we have steered our course toward
the growth strategy by promoting large-scale projects
and concentrating management resources in growthareas to expand and strengthen our core businesses. In
FY2010, we shifted our business model to three core businesses: Mineral Resources, Smelting & Refining, andMaterials. We have continued to implement our growthstrategy to enhance our corporate value andcompetitiveness.

We have been promoting high-performance materials for automobile batteries (cathode materials), which are expected to grow significantly in the future, and gradually increasing production capacity byleveraging our strength of an integrated process from the procurement of nickel raw material through to processing (3-business collaboration synergy).

In the 2018 3-Year Business Plan, we set the long-term vision of becoming the world leader in the
non-ferrous metals industry and worked to strengthen our growth foundation through the promotion of large-scale projects, reinforced collaboration among our three businesses, andstrengthened our corporate functions. In the subsequent 2021 3-Year Business Plan, under thetheme of “renewed challenge for change,” we will tackle 4 Challenges to realize our long-term
vision.

2000
Smelting & Refining
Business
Copper smelting
and refining
Nickel smelting
and refining

1993
Conversion of nickel refining process to MCLE technology
Innovation Topic

2 MCLE2005
Started production at Coral Bay Nickel
Corporation

2013
Started production at Taganito HPAL Nickel
Corporation

Matte and mixed nickel-cobalt sulfides (MS) were dissolved in chlorine at high temperature, then electrolysis was used to produce high-purity nickel.
MCLE was more competitive than other methods in terms of cost, but it posed significant operational challenges, and only a few other producers outsideof SMM had commercialized similar technology.

Innovation Topic

3 The HPAL method

This technology enabled the recovery of nickel from nickel oxide ores that had been conventionally difficult to process. The SMM Group was the first company in the world to apply it
successfully on a commercial scale. In addition to contributing to the realization of in-house procurement and the effective use of nickel resources, we also carried out activities that
contribute to society in the Philippines, where the operations are based.

Mineral Resources
Business
Gold mines

Overseas copper
mines

2006
Started production at the Pogo Gold Mine
1992
Capital participation in the Candelaria Copper Mine

2006
Started production at the Cerro Verde Copper Mine2017
Acquired interest in the Cote Gold Mine
2015
Started production at the
Sierra Gorda Copper Mine2016
Acquired additional interest in
the Morenci Copper Mine

2018
Transfered Interests in the PogoGold Mine2019
Acquired interest in the Quebrada Blanca
Copper Mine

2022
Began lower orebody mining
at Hishikari Mine

2024
Scheduled to begin production at Cote Gold
Mine

2022
Transfer of Interests in Sierra Gorda
Copper Mine
As a result of a Group-wide review of its asset portfolio, after considering various strategic options,
including the sale of its interests, SMM transferred
all of its interests in the Sierra Gorda Copper Mine.

2023
Began producing bulk copper
concentrates at the Quebrada
Blanca 2 Project

Materials Business
Materials

2001
Started production of cathode materials for automobile batteries

2014
Established Sumiko Energy Materials Co.,
Ltd., increased production of battery
materials and SAW filter LT/LN

2016
Decided to withdraw from the lead frame business
Management resources were reallocated to expand and strengthen battery materials and other productsthat are expected to grow in the future.

2022
Took over lithium iron phosphate (LFP)
battery materials business

2025
Scheduled to complete construction of a new plant toincrease production of battery materials (cathode materials) by 2,000 tons/month

Sustainability Topics
1999
The JCO criticality accident

SocialSetting

14

Around 1980

The spread of stainless steel

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

2008
Formulated “Vision
for 2020”

2012
Reviewed “Vision for 2020”

Nickel, a product of the SMM Group, was used as a raw material in stainless steel
and special steels. These materials were used in various areas such as communications, medical, construction materials, and the generation of electricity.
Demand for stainless steel picked up after 1987, and Hyuga Smelting Co., Ltd.
expanded ferronickel production.

2015
Reviewed “Vision for 2020”

Around 2000

Rapidly rising demand for cathodematerials for automobile batteries

2019
Reconsidered theLong-Term Vision

2020
Formulated “Vision for
2030”

2022
Reorganized the sustainability
promotion framework

Against the background of rising environmental awareness, demand rose rapidly for cathodematerials for hybrid and electric vehicle secondary batteries. Through close collaboration withcustomers, the SMM Group worked to supply high performance, safe battery cathode materials in addition to fulfilling its obligation as a producer of nickel and cobalt, the raw materialsof battery cathode materials.

SUMITOMO METAL MINING CO., LTD.

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15

Sustainability Management

 Sustainability Management

Message from the President GRI 2-22

From Sumitomo’s earliest days,
a commitment to winning social license
In our Long-Term Vision, the Sumitomo Metal Mining Group aims to become “the world leader in
the non-ferrous metals industry.” To achieve that goal, we believe one important element is toproactively address social issues through our business operations. This stance reflects Sumitomo’s
underlying belief that our businesses must be in harmony with, and inseparable from, the public
interest, in keeping with the following words etched in the Sumitomo Business Spirit: “Benefit selfand benefit others, private and public interests are one and the same,” the spirit that Sumitomo
has inherited, meaning that Sumitomo’s business must benefit the nation and society, andemphasize harmony with the public interest.
This philosophy has been central to all business activities undertaken by SMM since its earliest
beginnings: starting with the copper refining and smithing business launched by Riemon Soga in
1590, and continuing with the Company’s operations in mining inaugurated at the Besshi Copper
Mine (Niihama, Ehime) – the original business that set the foundations for the Sumitomo Group’s
subsequent development and expansion.
Business operations involving mineral resources in many instances require large-scale development, which means they often have significant impacts on the local communities and the environment. As such, we believe a major requisite when developing mineral resources is, in every
case, to obtain the social license to operate. This can be achieved only by making positive contributions through employment, tax payments, promotion of local industries, etc., while keeping
adverse environmental and other impacts to a minimum.
At the Besshi Copper Mine, for a period of 283 years starting with the commencement of operations in 1691, Sumitomo continuously took steps to share in co-prosperity with the local community and to coexist in harmony with the environment. For example, Sumitomo supported the

Akira Nozaki

lives of the mine’s workers – nearly 12,000 at peak – and their families by creating local infrastruc-

President andRepresentative Director

ture including housing, schools, hospitals and other community facilities. Sumitomo also undertook large-scale revegetation at the site, at times planting more than two million trees a year, andalso led the world in completely eliminating emissions of sulfur dioxide produced in the processof copper smelting. Today, the SMM Group carries on this firm commitment as we conduct our
mineral resource development projects around the globe. We always make every possible effort
to acquire social license and to build relationships of trust with our highly diverse stakeholders
everywhere.

16

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17

Sustainability Management

 Sustainability Management

Message from the President

Defining what the SMM Group can do to help solve
today’s social challenges

Integrating our business operations
and sustainability measures

Today, upsurges in geopolitical risk, accelerating global fragmentation and polarization and otherIn FY2022, we totally revamped our Groupwide sustainability advancement structure in order tofactors are fueling increasingly complex social issues on a global scale. Meanwhile, a variety ofmore closely coordinate our sustainability realization measures with our business operations.

uncertainties affecting corporate activities are also gathering momentum: turmoil in supply

Simultaneously we strengthened our response to such urgent issues as digital transformation

chains, rising costs of energy and other commodities, the emergence of issues relating to eco-(DX) and green transformation (GX), i.e., conversion from use of fossil fuels to renewable energies.

nomic security, etc. Even under these challenging circumstances, we believe that there are

During the 2022 fiscal period, we also undertook initiatives to address issues relating to humannumerous and varied ways in which the SMM Group can play a positive role and contribute torights, a matter garnering increased attention globally, in line with the UN Guiding Principles on

the world at large.

Business and Human Rights. To begin, we undertook a major review of our “Sumitomo Metal

One example is our operations in non-ferrous metals: copper, nickel, cobalt, etc. Demand for

Mining Group Policy on Human Rights.” We refined this policy using various international codes ofthese metals is projected to increase in the years ahead in numerous fields being promoted to

conduct, etc. as references, and also sought out the opinions of outside experts. In the area ofcombat climate change, including renewable energy-related infrastructure and electric vehicles.

human rights due diligence, we put together a structure concerning our nickel operations andWe believe the SMM Group has an inherent duty to provide society with stable supplies of thesought third-party certification. Furthermore, through our involvement with the Japan Center forresources that will underpin activities of these kinds. With many non-ferrous metals, however, theEngagement and Remedy on Business and Human Rights (JaCER), we improved our grievancenumber of highly productive mines is steadily decreasing, and this and other factors today aremechanism and enhanced justice assurance.

making an efficient recovery and reuse of metal resources already in the market a matter ofIn the current 2023 fiscal year, we have already compiled a new “SMM Group Water Policy.”increasing importance. Within the SMM Group, today we are responding proactively, applying our

The policy incorporates initiatives we must take concerning water usage, a social issue of global

technologies nurtured through our smelting and materials businesses to realize highly efficient

scope that is closely interconnected with human rights issues. Going forward, we will strive toresource recycling and recycling of spent batteries into secondary battery cathode materials.

achieve sustainable use and management of water resources based on this policy.

In our “Vision for 2030,” the SMM Group has identified a total of 11 material issues to promote in

In the area of human resources, we drastically overhauled our comprehensive personnel sys-

priority. For each issue, we have also set KPIs and goals, and today we are striving vigorously

tem in order to foster individual and organizational openness to change. Through proper andtoward realizing those goals to achieve a truly sustainable society.

effective operation of this new system, we aim to create an organization capable of taking up
challenges, reforming its practices, and marking positive growth by supporting all employees intheir right to continue independent learning.
To achieve the SMM Group’s Long-Term Vision to become the “world leader in the non-ferrous
metals industry” and the goals of our “Vision for 2030,” it is of paramount importance that wesecure the trust of our many stakeholders. To achieve this aim, starting this year we began issuinga “Sustainability Report” targeted at winning broader understanding of the SMM Group’s sustainability-related initiatives and activities. Going forward, we will seek continuous dialogue with ourmany stakeholders and steadily strive to fulfill our responsibilities toward achieving a truly
sustainable world.

18

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Sustainability Management

 Sustainability Management

Sustainability Management at the Sumitomo Metal Mining Group

Sumitomo Metal Mining Group Sustainability Policy

GRI 2-22/2-23

 Sustainability promotion framework
Decision-Making and Supervision

The SMM Group will tackle management issues that contribute to society’s sustainable
development, and will strive to achieve continuous growth in our business and improve
our corporate value.

Board of Directors

Business Execution

President

Sustainability Committee

Sustainability Promotion Structure

GRI 2-12/2-13/2-14/2-24

Our Group advances sustainability activities primarily through our Sustainability Committee. Since setting out our Vision for 2020 in
2008, we have consistently undertaken solutions to social issues through our business. In April 2022, we reorganized our sustainability promotion structure with the aim of engaging in management and sustainability with greater consistency.

Sustainability Committee
Chair

President

Deputy Chair

Executive officer in charge of sustainability (executive officer in charge of the Corporate Planning
Department)

Members*

General Managers of Divisions, General Managers of Administration Departments, General Manager of theTechnology Division, General Manager of the Planning & Administration Department of the Technology
Division, General Manager of the Engineering Division, General Manager of the Facilities Technology
Department of the Engineering Division, heads of operational divisions in the Head Office* The Chairman of the Board, outside directors, and Audit & Supervisory Board members attend as observers

Secretariat

Sustainability Department and Corporate Planning Department

Number of times
convened

Two or more times per year (five times in FY2022)

Content ofdeliberations








Deliberation on revision or abolition of material issues, Vision for 2030, and the Sustainability Policy eliberation and decision-making concerning important items related to annual plans and other sustainDability promotion activities, and indicators for evaluating our level of achievement toward Vision for 2030
 egular evaluation of sustainability promotion activities reflecting issues and opinions obtained throughR
engagement with stakeholders, and invoking of corrective measures rovision of information on sustainability promotion activities, exchanges of information, explanation ofP
key measures, sharing of awareness, and setting of important themes related to sustainability activities

In FY2022, the committee deliberated on progress toward Vision for 2030, standards for achievement andaction plans for 2030, revision of the Sumitomo Metal Mining Group Policy on Human Rights, and establishment of the SMM Group Digital Transformation (DX) Vision, etc. The committee shared information on opinions and issues identified through engagement with stakeholders, grievance mechanisms, internal audits,and other means, and reflected this information in our sustainability activities. In particular, the committee
made revisions to the Sumitomo Metal Mining Group Policy on Human Rights to reflect the opinions andrequests of diverse stakeholders.
Board ofDirectorsI nternal control and supervisory functions related to sustainability activities Deliberation, decision-making, and approval concerning sustainability activities, progress reports, evaluation of performance, review of activity plans for the following fiscal year, etc.
In FY2022, the Board of Directors deliberated and resolved matters including establishment of the SMM
Group DX Vision and revision of the Sumitomo Metal Mining Group Policy on Human Rights.


7 Sustainability Subcommittees

Risk Management Working Group

Group for Becoming the World Leader in the Non-Ferrous Metal Industry

Environmental Preservation Subcommittee

Compliance Working Group

Company-wide Group on Human Resources

Corporate Citizenship Subcommittee

Quality Assurance Working Group“Shikinen Kaikaku” Group

Diversity Subcommittee“Responsible Mineral Sourcing” Working Group

Human Rights Subcommittee
Occupational Health & Safety Subcommittee
Communications Subcommittee

7 Sustainability Subcommittees
Our 7 Sustainability Subcommittees manage progress toward Vision for 2030 and engage in sustainability activities integrated withour businesses.
Subcommittee
Efficient Resource Utilization
Subcommittee
Environmental Preservation
Subcommittee
Corporate Citizenship Subcommittee
Diversity Subcommittee
Human Rights Subcommittee
Occupational Health & Safety
Subcommittee
Communications Subcommittee

Sustainability Report 2023

Chair
Executive officer in charge of the Technology Division
Executive officer in charge of the Safety & Environment
Control Department
General Manager of the General Affairs Department
General Manager of the Human Resources Department
General Manager of the Sustainability Department
Executive officer in charge of the Safety & Environment
Control Department
General Manager of the Public Relations & Investor
Relations Department

Details of each subcommittee are described on the Material Issues page

Deputy Chair
Senior Deputy General Manager of theTechnology Division
Executive officer in charge of theTechnology Division———
General Manager of the Human
Resources Department—

Secretariat
Technology Division
Safety & Environment Control
Department
General Affairs Department
Human Resources Department
Sustainability Department
Safety & Environment Control
Department
Public Relations & Investor Relations
Department

P.32-137

4 Management Systems Working Groups
The Risk Management Working Group, Compliance Working Group, Quality Assurance Working Group, and “Responsible Mineral
Sourcing” Working Group play roles in operating our Group’s major management systems across organizations and in strengthening our management foundations. Each working group formulates policies in line with its theme and conducts checks of progress
toward achieving its activity plans.
Working Group

Chair
Executive officer incharge of the
Corporate Planning
Department

Deputy Chair
Executive officer incharge of the Safety &Environmental
Control Department

Secretariat
Corporate Planning
Department, Safety &Environmental
Control Department

Compliance Working
Group

Executive officer incharge of the Legal
Department

General Manager ofthe Legal Department

Legal Department

General managers of divisions, General Manager of the Technology Division,
General Manager of the Engineering Division, heads of operational divisions in
the Head Office

Quality Assurance
Working Group

General Manager ofthe Quality Assurance
Department—

Quality Assurance
Department

General managers of divisions, General Manager of the Technology Division,
General Manager of the Engineering Division, heads of operational divisions in
the Head Office

General Manager of
the Non-Ferrous
Metals Division

General Manager of
the Sustainability
Department

Administration
Department,
Non-Ferrous Metals
Division

Mineral Resources Division: General Manager of the Division, General Managerof the Administration Department
Non-Ferrous Metals Division: General Manager of the Administration
Department, General Manager of the Nickel Sales & Raw Materials Department,
General Manager of the Copper & Precious Metals Raw Materials Department,
General Manager of the Copper & Precious Metals Sales Department

Risk Management
Working Group

P.182-184

P.176-179
P.186-190

P.120-122

SUMITOMO METAL MINING CO., LTD.

Digital Transformation Carbon Neutrality
Committee
Committee

Corporate Value Enhancement Strategic Committee

Efficient Resource Utilization Subcommittee“Responsible Mineral
Sourcing” Working
Group

20

4 Management Systems Working Groups

Members
General managers of divisions, General Manager of the Technology Division,
General Manager of the Engineering Division, heads of operational divisions in
the Head Office

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Sustainability Management

 Sustainability Management

Sustainability Management at the Sumitomo Metal Mining Group

Corporate Value Enhancement Strategic Committee

Carbon Neutrality Committee

We have established the Corporate Value Enhancement Strategic Committee to grow the SMM Group’s business sustainably andenhance our corporate value. To further ensure the achievement of this objective, we have established the Group for Realizing theWorld Leader in the Non-Ferrous Metal Industry, the Company-wide Group on Human Resources, and the “Shikinen Kaikaku” Group
as subordinate organizations.

This committee was established in April 2022 to set a clear policy and path toward achievement of the carbon neutrality that ourGroup should pursue, and to quickly and powerfully move forward in this pursuit.
The basic principle is that each business division, and each organization related to carbon neutrality, should work together withthe aim of having all parties involved actively engage in activities.
Chair

Executive officer in charge of Carbon Neutrality (Executive officer in charge of the Technology Division)

Deputy Chair

Executive officer in charge of the Safety & Environment Control Department

Members

General managers, senior deputy general managers of divisions, General Manager of the Technology Division, General
Manager of the Engineering Division, General Manager of the Legal Department, General Manager of the Human
Resources Department, General Manager of the Finance & Accounting Department

General managers of divisions, General Manager of the Technology Division, General Manager of the Engineering
Division, General Manager of the Safety & Environment Control Department, General Manager of the Corporate Planning
Department, General Manager of the Sustainability Department, General Manager of the Finance & Accounting
Department

Secretariat

Planning & Administration Department of the Technology Division

Secretariat

Corporate Planning Department

Number of times
convened

Two or more times per year (six times in FY2022)

Number of times
convened

Two or more times per year (two times in FY2022)

Content ofdeliberations

Chair

Executive officer in charge of the Corporate Planning Department

Deputy Chair

General Manager of the Corporate Planning Department

Members

Content ofdeliberations

 eliberation on candidates for new large-scale projects
DSelection of “seeding” projects as candidates for new large-scale projects
 Reporting on the progress of large-scale projects, from the “planting” stage to the “harvesting” stage Instruction to the Group for Realizing the World Leader in the Non-Ferrous Metal Industry, the Company-wide Group on
Human Resources, and the “Shikinen Kaikaku” Group regarding examination of matters specified as issues


Digital Transformation Committee
The committee was established in April 2021 to clarify the future vision of Digital Transformation (DX) that our Group should aim forand to maximize the contribution to management through Group-wide promotion of DX.
Chair

Executive officer in charge of Digital Transformation (Executive officer in charge of the Technology Division)

Deputy Chair

General Manager of the Digital Transformation Department

Members

General managers of divisions, executive officers in charge of corporate divisions, Executive officer in charge of the Safety& Environment Control Department, Executive officer in charge of the Quality Assurance Department, General Managerof the Technology Division, General Manager of the Engineering Division, General Manager of the Corporate Planning
Department, General Manager of the Human Resources Department, General Manager of the Information Systems
Department

Secretariat

Digital Transformation Department

Number of times
convened

Two or more times per year (three times in FY2022)

Content ofdeliberations22

 rafting of DX promotion policy and deliberation on material issues
DDeliberation and decision-making on fiscal year plans for DX promotion activities and other key matters Regular evaluation of DX promotion activities and invoking of corrective measures Provision of information on DX promotion, exchanges of information, explanation of key measures, and sharing ofawareness O ther key issues related to DX promotion activities


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Sustainability Report 2023

 rafting of company-wide policy, goals, and roadmap for the achievement of carbon neutrality, and deliberation onDmaterial issues
 Deliberation and decision-making on fiscal year plans and other key matters related to carbon neutrality promotion
activities Regular evaluation of carbon neutrality promotion activities, review of goals, and invocation of corrective measures Provision of information on carbon neutrality promotion, exchanges of information, explanation of key measures, andsharing of awareness Deliberation and decision-making on other key issues related to carbon neutrality promotion activities


Putting Sustainability Promotion Activities into Practice

GRI 2-24

The 7 Sustainability Subcommittees manage and advance the progress of our sustainability promotion activities, with the
Sustainability Committee at the center. However, responsibility for putting activities into practice is assigned across different levels
through job classification-based management. In conjunction with our 2021 3-Year Business Plan, the subcommittees also formulated plans for organizations in areas related to Vision for 2030 during the period of the 3-Year Business Plan, and are managing the
progress of these plans. The 7 subcommittees assess details of organizations’ activities through the subcommittees’ members or
secretariats, and check progress through the Sustainability Committee.
Through dialogue with shareholders and investors and through briefing videos for business partners, we explain our Group’s sustainability promotion activities to outside stakeholders and call for their cooperation.

Penetration of Sustainability Promotion Activities

GRI 2-24

For Vision for 2030 and other sustainability promotion activities, we distribute simple, illustrated booklets with specific examples ofactivities to all Group employees, and post interviews and columns on specific activities in our in-house bulletins and on our portal
site. We also conduct education on sustainability in annual training (new employee training, mid-career hire training, grade-specifictraining, selective training, etc.). In addition to regular training, in FY2022 we held “Reorganization of Sustainability Promotion
Structure” briefings for managers and young employees in every district.
In conjunction with the adoption of the Sustainable Development Goals (SDGs) by the United Nations General Assembly in
September 2015, we have also set every September as a month for thinking about the Sumitomo Metal Mining Group’s Vision for2030. As a part of this, we hold the Sumitomo Metal Mining Group Vision for 2030 Awards every year as a rule. These awards recognize individuals and groups for their contributions to achieving Vision for 2030. In FY2022, a total of seven awards were given, with
one individual award and six group awards (115 people in total). We also engage in awareness activities such as communicating
messages from top management and conveying our progress toward Vision for 2030 to employees in a concise manner.

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Sustainability Management

 Sustainability Management

Positioning of Vision for 2030

Overview of Vision for 2030

Material Issues and Their Background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 inan 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.
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.

The below material issues were identified in March 2020. There have been no changes to material issues for FY2022.

* Vision for 2030, Material Issues, KPIs

P.28-29

1 Effective Use of Non-Ferrous Metal Resources

GRI 3-2

P.32

The SMM Group is engaged in the mining of natural resources, the production of highly advanced materials, and everything in
between. We handle a wide range of non-ferrous metal materials in the process. We believe that it is the SMM Group’s responsibility
to take on the challenge of making more effective use of limited non-ferrous metal resources without waste through the utilizationof resources that could hitherto not be used due to technical obstacles and through the development of recycling technologies.

2 Climate Change

P.42

Society’s demand for companies to reduce greenhouse gas (GHG) emissions has increased dramatically, and the business risks associated with climate change are also increasing. On the other hand, a stable supply of products contributing to a low-carbon society,such as the secondary battery materials for electric vehicles and the near-infrared absorbing materials CWO®, both produced by ourGroup, are expected to contribute to the reduction of GHG emissions.

3 Significant Environmental Accidents

4 Biodiversity

P.52

The SMM Group recognizes that there are risks of adverse impacts on the natural environment when developing natural resources
and using chemical substances. In addition to preventing significant environmental accidents, we recognize that minimizing ournegative environmental impacts, including rationalization the use of water, and preserving biodiversity in our day-to-day management of operations are prerequisites for business continuity.

 Diagram of Relationship with the SDGs

51

5 Employees’ Occupational Health and Safety2

3

Sustainability

Growth potential

P.80

It is the responsibility of management to prevent work-related accidents and illnesses, provide a safe, healthy and comfortable work
environment, and strive to improve employee comfort. All of these also lead to greater motivation and productivity among
employees. The SMM Group bases management on job classification, striving to ensure the safety and health of our employees
through intrinsic equipment safety improvements and safety education, etc.

6 Diverse Human Resources

7 Development and Participation of Human Resources

P.86

The source of the SMM Group’s growth is its employees. We respect individuality and diversity, and aim to create an open andvibrant organizational climate in which everyone can demonstrate their strengths and thrive. With the globalization of business andthe rapid development of DX, it is a management challenge to develop human resources who can think and act on their own initiative based on their expertise.

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9 10 11* The numbers 1 to 11 in the diagram indicate material issues in Vision for 2030

6

P.25

7

8 Engagement with Stakeholders
P.124

9 Co-Existence and Mutual Prosperity
with Local Communities P.110

10 Rights of Indigenous Peoples
P.116

The SMM Group’s main premise for business continuity is to earn a social license to operate. To this end, we recognize the importance of promoting information disclosure and transparency to the greatest extent possible, as well as deepening mutual understanding and building relationships of trust through ongoing dialogue with local communities and other stakeholders. In particular,when there is a risk that development may affect the livelihood of indigenous peoples, we gain a thorough understanding of theirculture, traditions and history and engage in a continuing dialogue prior to development. It is then necessary to proceed carefully
to prevent such impacts of development.

11 Human Rights in the Supply Chain

P.120

As for Business and Human Rights, the calls for companies to take strong measures to prevent human rights violations throughout
their supply chains are increasing. It is necessary for the SMM Group to construct sustainable supply chains in collaboration withbusiness partners to prevent our business activities from having negative impacts on human rights along our diverse supply chains.

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Sustainability Management

 Sustainability Management

Vision for 2030 – Formulation Approach GRI 3-1

To formulate Vision for 2030 and achieve sustainable value
creation, we undertook a full change revision of the Vision
for 2020. The revision addressed issues remaining from
Vision for 2020, the changes to the needs of stakeholders(our response to climate change, business and human rights,etc.), changing trends in the materials industry with therapid advance of digitalization, and connections to the SDGs,
which have the same target year of 2030. As shown in the
figure on the right, we underwent an extensive process ofdeliberations that involved the input of everyone from officers to employees, as well as outside experts as needed.

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

Identification of Sustainability Issues (FY2018)
Having summarized outlooks for conditions in 2030 by the OECDand 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 withclosely related SDG targets.

The CSR Committee1 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.

* Guidelines referenced• Topics of the GRI Standards• Issues in ISO 26000• Principles and position statements of the ICMM
• The Ten Principles of the United Nations Global Compact• Items noted in the DJSI and other corporate assessments

Examination of the Vision and KPIs (April - July 2019)
The CSR subcommittees2 began deliberations on the Vision and specific
KPIs in response to the 11 material issues.
Based on the examination of the CSR subcommittees,2 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.1

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.

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

Vision for 2030: Began Deliberations (December 2017)
The CSR Committee1 convened and identified 2030 as the next target.
Based on deliberations among officers in February 2018, the CSR subcommittees2 began deliberations toward Vision for 2030.

To identify material issues from the identified 89 issues, we began evaluations on two axes: evaluation by CSR subcommittees2 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 theopportunities 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 anevaluation of “5” from both social and business perspectives. Further, in March 2019, the CSR Committee1 ultimately identified 11 material issues based on opinions exchanged with outside CSR experts.

1. Current Sustainability Committee
2. Current 7 Sustainability Subcommittees

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Sustainability Management

 Sustainability Management

Vision for 2030, Material Issues, KPIs (Indicators and Goals) GRI 3-2/3-3

1 Effective Use of Non-Ferrous Metal Resources
Vision for 2030

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

KPI Indicators

Goals

1. 1) A dvance copper mine projects• Strengthen production structure at JV mines to achieve and maintain copper production levels of 300 kt/year frominterests• 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

2) Acquire new superior copper and gold resources• Develop new mines for which we have operatorship3) Improve productivity by introducing newtechnology• Promote remote operation and unmanned operation of heavy machinery and information infrastructure equipment
inside and outside of the Hishikari Mine

4) Advance nickel ore projects and improve
productivity(1) Nickel production: 150 kt/year(2) Recovery rate compared to FY2018: +2%(3) Recovery of scandium by-product(4) Recovery of chromite by-product2. 1) Develop technology to separate, stabilize andbleed off impurities, and create value from impurities generated by smelting processes and mines• Developtechnology to stabilize and bleed off impurities: Develop and demonstrate the process2) Develop technology to create value from unused
non-ferrous metal resources• Contribute to existing (e.g. marine resource development) and new development projects

3) R ecover non-ferrous metals from hard-to-process
resources• Participate in business and technology for recovery of lithium from salt-lake water in the presence of high levels of
impurities

3. D emonstrate and commercialize automobile secondary battery recycling technology• Demonstrate, commercialize, and expand scale of recycling technology that recovers cobalt from automotive lithium-ion
batteries
Commence commissioning and commercial operation of pre-commercial plant: FY2026*

4. 1) 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
communications2) Hold raw materials in-house for favorable andstable procurement• Commercialize NiO for fuel cells following demonstration project3) Expand sales of low-cost battery cathode materials through favorable, stable procurement of ourown nickel raw materials• Maintain top class global share in the expanding cathode materials market

2 Climate Change
Vision for 2030

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)

KPI Indicators

Goals

Reduce GHG emissions

1. C ontinuing to grow our business while maintaining GHG emissions below the level of FY2013. Accelerating actions toachieve net zero GHG emissions by 2050 or sooner.
2. C ut GHG emissions intensity by at least 26% compared to FY2013
3. E xpand contribution of GHG reduction by products contributing to a low-carbon society: 600 kt-CO2 or more

3 Significant Environmental Accidents   4 Biodiversity
Vision for 2030

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

KPI Indicators

Goals

1. Z ero significant environmental accidents

1) Promote improvements through the use of risk management and environmental management systems2) Reinforce and improve equipment and infrastructure to address increases in sources of natural hazard

2. Reduce emissions of hazardous substances(year-on-year)1) Optimize water use; reduce emissions of hazardous substances to the atmosphere and water2) Promote various environmental preservation and biodiversity preservation activities, such as regular reforestation

5 Employees’ Occupational Health and Safety
Vision for 2030

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

KPI Indicators

Goals

1. P revent occupational accidents

Serious accidents: zero (in Japan and overseas, including contractors)
All accidents: reduce year-on-year, with aim of eventually reaching zero

2. 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
Vision for 2030

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

KPI Indicators

Goals

1. Promote working style reform and create workplaces 1) Improve scores for “Management by managers and superiors,”“Appeal of job,” and “Work environment” in employeethat make use of digital technology, enablingawareness survey
diverse human resources to play vibrant and active2) (1) Number of female managers: 50 (SMM)
roles(2) Ratio of female employees: 20% or higher (SMM)
3) Expand number of managerial track employees of foreign nationality
4) Percentage of employees with disabilities: 3% or higher (SMM)
5) Assign jobs and provide support matched to employees’ life stages
2. Support employees’ mental and physical health1) Reduce the number of employees taking long-term leave2) Percentage of employees with abnormal findings indicated in health checkups: 50% or lower
3. Diversify opportunities to enhance the abilities of1) Utilize one-on-one meetings that bring out the motivation and potential of every employee and boost the growth of
employees according to employee needs and work
subordinates through regular dialogues between superiors and subordinates
needs2) 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
3) Provide opportunities for self-development matched to each employee’s life plans and needs (correspondence courses,
online training, etc.)

8 Engagement with Stakeholders
Vision for 2030

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

KPI Indicators

Goals

1. Further penetrate our Group brand among
employees
2. Ensure quality and quantity in communication of
information and dialogue at the level of “world
leader in the non-ferrous metals industry”
3. I ncrease in recognition and understanding of ourgoal of “world leader in the non-ferrous metals
industry”• Improve results of employee awareness survey (increase ratio of employees who feel pride in working at the Company)• Expand opportunities for dialogues with media and investors• Achieve positive evaluations of our Integrated Report from outside the Company• Improvement in findings of surveys by external bodies (degree of recognition and understanding, etc.)

9 Co-Existence and Mutual Prosperity with Local Communities
Vision for 2030

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

KPI Indicators

Goals

Participate in local communities through dialogue
and collaboration
1. Support the local community via employee
participation
2. Hire and procure locally
3. S upport for nurturing of the next generation

Accurately identify local issues through dialogues with local communities, and execute measures 1. to 5. as follows

4. S upport for people with disabilities and the elderly
5. Support during and after disasters• Implement employee participation programs (from 2023)• Continually implement and assess of performance1) Implement programs to nurture the next generation in collaboration with government, local bodies, NPOs, etc. (one ormore times/year)2) Establish and award scholarships in Japan and maintain existing overseas scholarships (from 2023)• Implement programs to support people with disabilities and the elderly in collaboration with government, local bodies,
NPOs, etc. (one or more times/year)• Support regions affected by large-scale disasters

10 Rights of Indigenous Peoples
Vision for 2030

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

KPI Indicators

Goals

1. Understand indigenous peoples and their traditions
and culture
2. Support initiatives that lead to respect for the traditions and cultures of indigenous peoples• Percentage of SMM Group sites implementing in-house education: 100% by the end of FY2023
1) Provide scholarships for indigenous peoples (continue existing initiatives)2) Support indigenous people-related initiatives by NGOs, academic societies, etc.: one initiative or more each year

11 Human Rights in the Supply Chain
Vision for 2030
KPI Indicators

A company that undertakes sustainable procurement across the supply chain
Goals

Promote sustainable procurement, particularly respon- 1. Responsible mineral sourcing
sible 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 humanrights in the supply chain
2. Sustainable procurement
1) Business partners that have received and agreed with the Sumitomo Metal Mining Group Sustainable Procurement
Policy: 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)* The underlined KPIs for this year have been partially revised
No change has been made to the material issues

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Effective Use of Non-Ferrous Metal
Resources
Environmental Management

Environment

Climate Change
Significant Environmental Accidents /Biodiversity
Environmental Data

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Environment

 Environment

Effective Use of Non-Ferrous Metal Resources

Vision for 2030

Medium-Term Targets and Progress

GRI 3-3

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.

A company that generates resources through hightechnological capabilities

FY2022 Results

Approach and Policy

GRI 3-3



Relevant departments

Check progress
on KPIs

Department in charge(business division, etc.)

Collaborate
and cooperate

Digital Transformation
Department
Engineering Division
Purchasing Department
Legal Department, etc.

• Continue to provide Wi-Fi in the mineand test LHD loader automated driving, and work to further enhance operational efficiency by means including
introduction of new technologies suchas drilling machines with navigation
functions and semi-automated longhole drilling machines, and improvement of the waste stone rate throughthe introduction of new ore sorters

Action Plan

Collaborate
and cooperate• Through entry into new JV exploration
projects, information gathering aimed
at acquisition of new mines, onsite surveys, etc., plan to continue conducting
studies aimed at obtaining new
operatorship

Achievement Criteria

Efficient Resource Utilization Subcommittee• Aim to obtain further interests toachieve copper production level on aninterest basis of 300 kt, which is thelong-term vision• Post-pandemic, strengthen collaboration with operating sites and contribute in terms of management andtechnology to ensure production levels in JV mines exceed plans• Continue to strengthen collaboration
with operating sites and contribute interms of management and technology
to ensure production levels in JV
mines exceed plans• Participate in new exploration projects
through joint ventures and prepare foracquisition of new mines, etc., toobtain new operatorship• Participate in new exploration projects
through joint ventures and makepreparations to acquire new mines toobtain new operatorship• Gather information required to form
new exploration projects through joint
ventures and conducted site surveys.
Also, enhance project pipeline management, including participation inlate-stage exploration projects.

• Gather information required to form
new exploration projects through joint
ventures and conducted site surveys.
Also, enhance project pipeline management, including participation inlate-stage exploration projects.

KPI 	1. 3) Improve productivity by introducing new technology•P romote remote operation and unmanned operation of heavy machinery and information infrastructure equipment inside and outside of
the Hishikari Mine• At the Hishikari Mine, proceeded withthe provision of Wi-Fi in the mine
under a three-year plan, and introduced our first automated driving andground-based remote control system
for the underground load haul dump
(LHD) loaders that load and transportores, launching operational tests intunnels

President

Chair: Executive officer in charge of the Technology Division
Deputy Chair: Senior Deputy General Manager of the Technology Division
Members: Personnel in charge of each department• Through channels including Kenorland
Minerals Ltd., in which we invested in
2021, conducted studies aimed atentry into new JV exploration projects,
acquisition of new mines, etc.
• Also engaged in onsite surveys, information gathering necessary for theformation of new JV exploration projects, etc.

Action Plan

As activities concerning the effective use of non-ferrous metal resources, one of our material issues, involve numerous KPIs and specific measures that must be made consistent with business strategy, the activities are led by business divisions. The business divisions collaborate and cooperate with the Efficient Resource Utilization Subcommittee and relevant departments to engage inactivities aimed at achieving our KPIs and Vision for 2030.
The Efficient Resource Utilization Subcommittee, which has the Technology Division as its secretariat, performs progress management and support for the activities of the business units. Because the Technology Division plays a particularly large role in providing
support for technical aspects, our support structure integrates this division with the subcommittee.

Sustainability Committee• Achieve copper production level on aninterest basis of 270 kt by starting production in Quebrada Blanca Phase 2,
etc.

KPI 	1. 2) Acquire new superior copper and gold resources• Develop new mines for which we have operatorship

GRI 3-3

 Promotion Structure• Copper attributable production at JV
mines in 2023 is predicted to be 210 kt• At all mines, undertake measures toovercome the challenges of 2022 andurge steady implementation of thesemeasures through participation in theManagement Committee and technical meetings• Begin copper concentrate production
from Phase 2 at the Quebrada Blanca
Copper Mine, and study subsequent
projects

Achievement
Criteria

Promotion Structure• Copper attributable production at JV
mines in 2022 was 200 kt, falling shortof the forecast of 220 kt (announced in
May 2022)• Reasons for this included a shortage oftruck staff at the Morenci Copper Mine,
effects of the COVID-19 pandemic at
the Cerro Verde Copper Mine, truck
maintenance delays and sinkhole accidents at the Candelaria Copper Mineand Ojos del Salado Copper Mine, anddecline in grade of the main ore bodyat Northparkes Copper Mine• Focused on the start of copper concentrate production from Phase 2 at
the Quebrada Blanca Copper Mine

Action Plan

Non-ferrous metal resources see wide use in fields connected to the resolution of social issues such as climate change. By making effective use of finite non-ferrous metal resources without waste, we believe that
we can contribute to achieving a sustainable society. Our Group uses our production capabilities as afoundation for carrying out research and development that includes collaboration with external parties,
and works to enhance our technological capabilities related to product creation. We strive to stably supply
non-ferrous metal resources, create value from unused resources, and utilize technologies for recoveringand recycling hard-to-process resources.

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	1. 1) Advance copper mine projects• S trengthen production structure at JV mines to achieve and maintain copper production level of 300 kt/year from interests•A chieve 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•A dvance Phase 2 and later projects at the Quebrada Blanca Copper Mine
Achievement
Criteria

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 technologicaldevelopment 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

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

• Establish ICT infrastructure (Wi-Fi) andbegin introduction of (1) automated
LHD loaders; (2) automated drillingmachinery; and (3) remote operationand monitoring of heavy machineryand vehicles, etc. at the Hishikari Mine• Firmly establish (1) automated LHD
loaders; (2) automated drilling machinery; and (3) remote operation andmonitoring of heavy machinery andvehicles, etc. (plan to introduce someduring the 2024 3-Year Business Plan)
and begin further introduction of newtechnology at the Hishikari Mine

• Based on status of introduction of newtechnology at the Hishikari Mine,examine more specific measures forpromoting remote operation andunmanned operation of heavymachinery and information infrastructure equipment inside and outside themine• Based on status of introduction of newtechnology at the Hishikari Mine,examine more specific measures forpromoting remote operation andunmanned operation of heavymachinery and information infrastructure equipment inside and outside themineBusiness sites (plants, mines, Group companies, etc.)

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Environment

 Environment

Effective Use of Non-Ferrous Metal Resources

FY2022 Results

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	1. 4) Advance nickel ore projects and improve productivity• Nickel production: 150 kt/year• Ni Recovery rate compared to FY2018: +2%• Increase production volume to achieve
150 kt/year• Maintain and increase Ni recovery rate

• Continue to develop technology andimprove processes to increase production volume• Continue to improve processes
through technology development, etc.
• Search for new nickel mineral sources• Continue to develop technology andimprove processes to increase production volume• Continue to improve processes
through technology development, etc.
• Search for new nickel mineral sources

KPI 	1. 4) Advance nickel ore projects and improve productivity• Recovery of scandium by-product• Recovery of chromite by-product• Maintain production volume at design
capacity• Ensure Sc recovery rate and increase
production volume• Ensure Cr recovery rate and maintainproduction volume

KPI 	2. 1) Develop technology to separate, stabilize and bleed off, and create value for impurities generated by smelting processes and mines• Develop technology to stabilize and bleed off impurities: Develop and demonstrate the process

Action Plan

• Utilize knowledge gained throughresearch• Utilize knowledge gained throughresearch• Examine use of knowledge gained
through research in future mine operations and other separation technology• Examine use of knowledge gained
through research in future mine operations and other separation technology

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• Participate in some form in the next
Ocean Energy & Mineral Resource
Development Plan (FY2023 onward) to
be formulated by the Ministry of
Economy, Trade and Industry• Participate in some form in the next
Ocean Energy & Mineral Resource
Development Plan (FY2023 onward) to
be formulated by the Ministry of
Economy, Trade and Industry

Action Plan

34

• Plan to participate in projects targetingsea-floor massive sulfide deposits,cobalt-rich ferromanganese crust, etc.
based on the next Ocean Energy &Mineral Resource Development Plan tobe formulated by the Ministry of
Economy, Trade and Industry

Achievement
Criteria• In the final year of a five-year plan formulated by the government, leveraged our technical knowledge toparticipate in massive sulfide deposit
and cobalt-rich ferromanganese crust
projects• Contribute in the role of industry byparticipating in research and development JVs for individual projects, inJapan Organization for Metals andEnergy Security (JOGMEC) committees
for exploration, mining, ore lifting,mineral processing, smelting and refining, etc.

• Contribute in the role of industry byparticipating in research and development JVs for individual projects, in
JOGMEC committees for exploration,mining, ore lifting, mineral processing,
smelting and refining, etc.

• Continue to study processes aimed at
GHG reduction• Start construction work on pre-commercial plant• Develop adsorbent for practical use
and manufacturing processes for lithium chemicals• Demonstrate process feasibility
through on-site pilot tests, etc.

• Participate in construction and operation of commercial plant(plan to implement study of commercialization model during the 2024
3-Year Business Plan)• Improve adsorbent through joint
research with Universities• Design overall process and verify economic feasibility• Participate in lithium operations andstabilize product quality
Items or targets to be implemented
during the 2024 3-Year Business Plan
• Obtain data for feasibility study
through demonstration plant• Conduct design and feasibility study ofcommercial plant• Continue construction work on
pre-commercial plant(Start test operation of pre-commercial plant in FY2026)• Processing of 10,000 t/year at
pre-commercial plant• Continue construction work on
pre-commercial plant• Improve technology to increase processing volume of its pre-commercial
plant

KPI 	4. 1) 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• Explored new themes using a new
business creation system• Established the GX Materials Science
Co-Creation Research Center in cooperation with Tohoku University andlaunched search for themes related toa hydrogen-based society and future
batteries• Narrow down new theme candidates
explored using the new business creation system, through market researchand collaboration with universities• In co-creation of a vision with Tohoku
University, continue to explore themes
aimed at the achievement of a solar
energy society; at the GX Materials
Science Co-Creation Research Center,
continue to explore themes of ahydrogen-based society and future
battery materials, and propose new
candidate themes

Action Plan

KPI 	2. 2) Develop technology to create value from unused non-ferrous metal resources• Contribute to existing (e.g. marine resource development) and new development projects• In studies of processes for recovery ofcopper, nickel, cobalt and lithium at
the pilot plant, (1) passed users’ evaluations of properties of batteries madewith recovered nickel and cobalt, and(2) optimized pretreatment methods
aimed at greenhouse gas (GHG)
reduction

Achievement
Criteria• Continue studying latest research
cases

Achievement
Criteria• Studied the application of technology
for separation of arsenic from copper
concentrates to future operations andto other separation technologies,
investigating overseas research anddevelopment cases and drawing on
our knowledge obtained from research
results to date

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	3. Demonstrate and commercialize recycling technology for automobile secondary battery•D emonstrate, commercialize, and expand scale of recycling technology that recovers cobalt from automotive lithium-ion batteries
Commence commissioning and commercial operation of pre-commercial plant: FY2026

Action Plan

Action Plan

• Increase production volume to design
capacity• Start pilot trials using actual brinewater• Continue to study commercialization• Achieve target water usage in the DLE
process• Continue the development of adsorbent through joint research

Achievement
Criteria• Increase scandium production volume• Increase chromite production volume

Achievement
Criteria• Achieved record-high production volume of scandium• Achieved record-high production volume of chromite• Conducted conceptual design andpreliminary capital expenditure(CAPEX) estimation to evaluate thecommercial potential of direct lithium
extraction (DLE) technology• Reduced freshwater usage in the DLE
process close to the target• Promoted development of adsorbent
through joint research with
universities

Action Plan

Action Plan

• Increase production volume to achieve
150 kt/year• Maintain and increase Ni recovery rate

Achievement
Criteria• Narrow down new nickel projects andcontinue detailed study• Maintain and improve Ni recovery rate

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

KPI 	2. 3) Recover non-ferrous metal from hard-to process resources• Participate in business and technology for recovery of lithium from salt-lake water in the presence of high levels of impurities

Achievement
Criteria• Accelerated examination of new nickel
projects to replace the Pomalaa Project• CBNC fell short of target due to fluctuations in ore quality, but THPAL
achieved target

FY2022 Results• Study potential R&D themes that willlead to commercialization• Implement working group activities
and activities such as joint research on
future co-creation with universities• Move on to the next stage of R&D
themes with a view tocommercialization• Continue joint research with universities on new businesses• Operate new business creation system
and manage progress of research
themes• Develop human resources and explore
themes utilizing new working group
activities and co-creation activities
with universities• Use our X-MINING information dissemination website and take part in
exhibitions• Continually improve activities aimed at
new business creation
Items or targets to be implemented
during the 2024 3-Year Business Plan
• Operate new business creation system
and manage progress of research
themes• Continually develop human resources
to create new businesses and newthemes• Continue to disseminate information,
including at exhibitions

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35

Environment

 Environment

Effective Use of Non-Ferrous Metal Resources

FY2022 Results

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Final Year of 2027 3-Year Business
Plan (FY2030)

Recycling of Low-Grade Nickel Oxide Ores

KPI 	4. 2) Hold raw materials in-house for favorable and stable procurement• Commercialize NiO for fuel cells following demonstration project• Continued demonstration tests at pilot
plant

Achievement Criteria• Continued demonstration tests at pilot
plantAction Plan

• Continued demonstration tests at pilotplant• Decide on investment in mass production based on feasibility study• Expand business size to accommodate
sustained growth of fuel cell battery
marketItems or targets to be implemented
during the 2024 3-Year Business Plan
• Introduce mass production equipment
and expand business size
• Establish business profitability• Improve profitability by reducing production costs and optimizing selling
prices• Prepare for mass production (installation location, design, and quotations)and carefully examine market• Decide on investment in mass production based on feasibility study• Continually assess business feasibility
and make decisions on investment inboosting production• Gain further competitive advantage(cost, technology, etc.)
Items or targets to be implemented
during the 2024 3-Year Business Plan
• Introduce mass production equipment
and start up as soon as possible• Achieve business profitability by
expanding sales

KPI 	4. 3) 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• Make decision on implementation of
2,000 t/month expansion according toplan and on implementation of
post-processing equipment expansion• Continue to conduct surveys and studies related to next production
expansion

Achievement Criteria• Continued to advance construction,
staff recruitment, etc. according toplan for 2,000 t/month expansion,
with the aim of starting test operation
in FY2024• Conducted surveys and studies related
to next production expansion

Contribution to a Circular Economy (effective use of resources)

Action Plan

• Expand production capacity for cathode materials to reach 7,000 t/month(complete in FY2025)• Maintain top class share of market• Construct 15,000 t/month production
capacity for cathode materials• Maintain top class share of market
Items or targets to be implemented
during the 2024 3-Year Business Plan
• Establish 10,000 t/month production
capacity for cathode materials• Maintain top class share of market• Establish stable production of 4,850 t/month• Expand production by 2,000 t/month• Aim for 15,000 t/month production
capacity(Aim for 10,000 t/month during the2024 3-Year Business Plan)

Smelting and refining of low-nickel-content oxide ores found near the earth’s surface involves numerous technical challenges thatmade it difficult to achieve on a commercial basis. However, such low-grade oxide ores are said to account for about 70% of theworld’s nickel oxide mineral resources, which lead to worldwide demand for development of technology to enable its processing.
Drawing on our advanced equipment engineering and operation technologies, in April 2005 our Group led the world in achieving
large-scale commercial production via the hydrometallurgical processing technology known as HPAL at Coral Bay Nickel
Corporation (CBNC)1 in the Philippines.
In 2013, Taganito HPAL Nickel Corporation (THPAL)2 began
operation as our second HPAL plant. The nickel intermediate
smelted and refined at the two HPAL plants is used in Japan aselectrolytic nickel and as secondary battery cathode material forelectric vehicles. We also recover and recycle cobalt contained in
the intermediate and scandium and chromite contained in theore.
1. Coral Bay Nickel Corporation (CBNC): Shareholders: Sumitomo Metal Mining Co., Ltd.
(84.375%); Nickel Asia Corporation (15.625%). Head Office: Rio Tuba, Bataraza, Palawan
Province, Philippines
2. Taganito HPAL Nickel Corporation (THPAL): Shareholders: Sumitomo Metal Mining Co.,
Ltd. (75%); Mitsui & Co., Ltd. (15%); Nickel Asia Corporation (10%). Head Office: Taganito,
Surigao del Norte Province, Philippines

 Supply Chains for Realizing a Stable Supply of Nickel(nickel grade: approx. 1%)

Low-grade nickel
oxide ores

THPAL

Nickel matte
Other raw materials

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

(nickel grade: approx. 2%)

Hyuga Smelting
Co., Ltd

Nickel ore

Nickel mine
(New Caledonia)

Precursors

Nickel sulfate
Nickel chloride

Precursors

Batterymaterials

Battery materials, nickel powder
Electrolytic nickel(nickel grade: 99.99%)

Customers

PT Vale Indonesia,
others(nickel grade: approx. 1%)

MS(nickel grade:approx. 55–60%)

Niihama Nickel Refinery

Taganito
Nickel Mine

CBNC

Isoura Plant

Rio Tuba
Nickel Mine

Nickel sulfate

Sumiko Energy
Materials Co., Ltd.

Low-grade nickel
oxide ores

Harima RefineryWe maintain fully integrated supply chains covering from ores
through to metals and materials

36

Low-grade nickel oxide ore for THPAL

Other chemical products

Ferronickel(nickel grade: approx. 15–20%)

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Sustainability Report 2023

37

Environment

 Environment

Effective Use of Non-Ferrous Metal Resources

Battery Recycling

Other Recycling Initiatives

As automobiles undergo what is expected to be a rapid and long-term shift to electric drive and battery capacity becomes increasingly higher, demand is growing for the copper, nickel, cobalt, and lithium used in lithium-ion secondary batteries (LIBs) for electricvehicles, leading to calls for effective resource recycling.
Since 2017, we have been working to recover and reuse the copper and nickel contained in LIBs through a process that combines the Toyo Smelter & Refinery’s copper smelting and refining processes and the Niihama Nickel Refinery’s nickel smelting andrefining processes. The recovered nickel, in particular, is processed into a secondary battery cathode material at the Isoura Plant,
realizing Japan’s first “battery to battery” horizontal recycling using materials recovered from used LIBs.
In addition to this, we have been promoting LIB recycling research and development and demonstrated in 2021 that cobalt, forwhich resource depletion is a concern, can also be recovered, purified to a high level, and reused as a raw material for LIB cathodematerials. Moreover, through joint development with Kanto Denka Kogyo Co., Ltd., we established technology that recycles lithiumfrom slag containing lithium into high-purity compounds in 2022, successfully developing a new process for horizontal recycling ofcopper, nickel, cobalt, and lithium.
In evaluations of battery performance by battery user Primearth EV Energy Co., Ltd., it was demonstrated on the product levelthat the performance of batteries using LIB cathode materials manufactured through this process is equal to that of batteries manufactured from conventional raw materials, primarily derived from natural resources.
We are currently studying the commercialization of battery recycling with the aim of establishing a system for processing 10,000
tons per year during the term of the 2024 3-Year Business Plan (FY2025–2027). In parallel with this, we are also working to develop
technology for reducing CO2 emissions from the perspective of carbon neutrality. If this new process makes it possible to reuse
valuable metals as resources on a commercial basis, it can be expected to make a further contribution to resource recycling tocombat global resource depletion.
Looking ahead, we will continue to actively work on “battery to battery” horizontal recycling and will contribute to the formationof a sustainable circular economy and the strengthening of resource recycling to combat global resource depletion.

Percentage of Recycled Input Raw Materials Used

GRI 301-2

The SMM Group procures copper scrap and precious metal
scrap from the market, recovers zinc from electric arc furnace
dust, and recovers valuable and precious metals from used
printed circuit boards and other sources. In FY2022, our percentage of recycled input raw materials used was approximately 236 kt, accounting for 2.21% (2.38% in FY2021) of
input raw materials, a slight drop from the previous fiscal year.
Production volume of electrolytic copper from recycled raw
materials was approximately 93 kt, accounting for 20.9%(23.1% in FY2021) of production volume, a slight drop fromthe previous fiscal year.
Percentage of Recycled Input Raw Materials Used

P.70

 Percentage of Recycled Input Raw Materials Used
(kt)
260

(%)
3.5

249
239

240

220

2.22

227

229

2.08

2.13

236

2.38
2.21

200

3.0

2.5

2.0

0
(FY)

2018

2019

2020

2021

2022

0

 Recycled materials (left axis)  
Percentage of recycled input raw materials used (right axis)* Percentage of recycled input raw materials used: Total raw materials used ÷ recycledmaterials x 100

Slag as a Recycled Material
Copper slag is a by-product produced during smelting at the Toyo Smelter & Refinery, which manufactures electrolytic copper. The
main use for copper slag (70% of the total volume) is cement production for Japan and overseas. With an iron content of about
40%, copper slag is widely used as a source of iron for cement.
The ferronickel slag at Hyuga Smelting Co., Ltd., which manufactures ferronickel used as a raw material for stainless steel, is mainly
used at steel blast furnaces. With a magnesia content of about 30%, ferronickel slag is used as a source of magnesia for blast furnace
flux.
Manufacturing process

Slag produced

Main use

Copper slag
Toyo Smelter & Refinery Recycling Flow

Dryer

Pre-Processing
Manufacturers

Used Secondary
Batteries* Pre-processing: Heat treatment to eliminate toxins,crushing, and selection

SMM’s
SecondaryBattery
Recycling
Process
Battery
Manufacturers

Kanto Denka Kogyo’s
High-Purity Lithium
Recycling Process

Pyrometallurgical
Smelting Process

Slag

Hydrometallurgical
Refining Process

CopperBattery Materials
Manufacturing Process

Motors, Wire harnesses, etc.

Electrolytic Solution
Manufacturers

SUMITOMO METAL MINING CO., LTD.

Hydrometallurgical
Refining Process

Nickel-Cobalt Mixture

Cathode materials forlithium-ion secondary
batteries

38

Lithium

Sustainability Report 2023

High-Purity
Lithium Compounds

Slag cleaning
furnace

975 ktRaw material for cement
Fine concrete aggregate

Ferronickel slag

(pre-processed*)

Intermediates frombattery manufacturing

Flash furnace

Hyuga Smelting Co., Ltd.
Dryer

Kiln

For steel blast furnaces
Electric
furnace

424 ktFor harbor and civilengineering construction
Fine concrete aggregate

Precious Metal Recovery: Flow Diagram
Discarded household appliances and discarded electronic parts collected nationwide, and E-scrap containing high concentrationsof gold, silver, copper, palladium, and other valuable metals generated in the manufacturing of these appliances and parts, provide
SMM with raw materials for the recovery and recycling of precious metals (gold, silver, platinum, etc.).
Receipt of scraps containing precious metals
After sorting the collected raw materials into parts that
contain precious metals and those that do not, the SMM
Pyrometallurgical process
Hydrometallurgical process
Group company Ohkuchi Electronics Co., Ltd. uses the pyrometallurgical or hydrometallurgical process, depending on
Dissolved by acid, stripping of
precious metals by cyanide
the composition and other aspects of the parts, to condense
Calcining
Melting
Reduction
the materials before transporting them to the Toyo Smelter &Refinery.
Calcined materials
SpongeSemi-refined
Precious metal
The Toyo Smelter & Refinery smelts and refines those concontaining(reduced gold,
gold
precipitate
reduced platinum)
precious metals
densed raw materials along with other copper and precious
metal raw materials, and then recycles them into high-grade
Toyo Smelter & Refinery
precious metals.
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Environment

 Environment

Environmental Management

Sumitomo Metal Mining Group Environmental Targets for 2023

GRI 3-3



FY2023 Policy

Use an environmental management system (EMS) to strengthen environmental management,
address global environmental issues, and preserve biodiversity.

FY2023 Targets

1. Eliminate environmental accidents and compliance breaches
2. Reduce greenhouse gas (GHG) emissions
3. Promote preservation of biodiversity* Carbon Neutrality Committee

GRI 3-3

Deploy Environmental Targets and Use an Environmental Management System
Based on our Group’s environmental vision and progress toward it, the Safety & Environment Control Department formulates a proposal for the Group’s environmental targets (policies, objectives, strategies), which are reviewed and approved by the president. At
each business site, annual targets and plans are developed based on the Group’s environmental targets, taking into account theunique risks of each site, and are carried out through the EMS based on ISO 14001 (JIS Q 14001). As of April 1, 2023, all our production sites have obtained third-party ISO 14001 certification.

The Environmental Preservation Subcommittee and the Safety & Environment Control Department
The Safety & Environment Control Department serves as the secretariat of the Environmental Preservation Subcommittee withrespect to significant environmental accidents and biodiversity which are material issues. The Department is the functional instructing department with respect to environmental preservation activities in general, promoting initiatives through the cooperation andcollaboration of various departments to realize the Vision. This includes the operations of the Environmental Preservation
Subcommittee, functional instructions to site managers based on legal revisions and other external information, various reports
and inspections, and alerts and inspection directives through the sharing information about environmental accidents and nearmiss cases within the Group.

The Carbon Neutrality Committee and the Technology Division
Regarding climate change, which is a material issue, the Technology Division serves as the secretariat and functional instruction
division for the Carbon Neutrality Committee,* driving activities through collaboration and cooperation with various departments
 Promotion Structure

Carbon Neutrality
Committee

Chair: Executive officer in charge of the Safety &Environment Control Department
Deputy Chair: Executive officer in charge of theTechnology Division
Members:
Department environment managers

Check progress
on KPIs

Individual Initiatives for Environmental Preservation
Inspections, Communications
The head of the department overseeing a business site conducts an annual inspection of the business site, including the businesssites of the Group companies it oversees. In addition, the General Manager of the Safety & Environment Control Department
inspects designated business sites, including those of Group companies, to ensure that proper environmental management practices are in place.
Further, the Safety & Environment Control Department conducts environmental communication activities to assess environmental issues at each business site by visiting designated sites, including those of Group companies. Findings from the inspection by
the General Manager of the Safety & Environment Control Department are reported to the heads of the business sites and thedepartment responsible, as well as the president of SMM. Upon sharing the identified issues, efforts are made to enhance environmental management levels at the respective business sites.

Environmental Management in the Besshi District
In the Besshi District (Niihama City, Ehime Prefecture, and its suburbs), where many of our Group’s manufacturing bases are located,the Besshi-Niihama District Division Safety & Environment Control Center plays a central role in enhancing environmental management standards. This involves offering guidance on environmental management initiatives to business sites including Group companies in the district. The Center also offers regular opportunities to exchange information, study sessions, and conducts mutual
patrolling to improve environmental practices.

In addition to providing e-learning as an educational tool for laws and regulations and environmental management, we offer training for EMS internal auditors, and environmental management education for newly appointed business site general managers, theenvironment managers, new employees, and mid-career hires to enhance environmental management levels.

President

Functional instructions

Conferences for environment managers are held in principle once per year and are attended by environment managers from all
business sites. In these meetings, we aim to enhance the capabilities of these managers through education and discussion on the
progress of environmental objectives, updates on legal amendments and compliance status, as well as environmental performanceand priority areas of focus.

Education

Sustainability Committee

Environmental Preservation
Subcommittee

P.23

Conference for Environment Managers

Promotion Structure

Chair: Executive officer in charge of carbon
neutrality
Vice Chair: Executive officer in charge of the Safety &Environment Control Department
Members

to achieve the Group’s Vision. It runs the Carbon Neutrality Committee, formulates the policy, targets, and plans to achieve carbon
neutrality and deliberates on material issues, collecting external information (from guidelines of affiliated organizations, international trends, regulatory revisions, etc.) and performance data, sharing case studies with other departments, and deliberates on andapproves the internal carbon pricing (ICP) system.

Safety & Environment
Control Division

Department in charge(business division, etc.)
Department environment
manager

Environmental Preservation Initiatives at Business Sites
Through EMS, each business site conducts activities on a regular basis to improve the level of environmental management throughthe PDCA cycle. Such activities include evaluations of the effect on the environment of the business’ activities (environmental risk
assessment), formulation and execution of environmental management, preventive environmental preservation activities, tracking
through internal and third-party audits, management reviews, and emergency response training in case of accidents.

Personnel in charge of promoting
carbon neutrality

Environmental Preservation Investment as a Part of Facility Investments

P.72

Business sites (plants, mines, Group companies, etc.)
Conference for environment managers
Business site division(s)(department(s), section(s), etc.)
Business site environment
manager(s)40

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Environment

 Environment

Climate Change

Vision for 2030

Metrics and Targets
We have established the goal of achieving carbon neutrality by 2050. In order to achieve this goal, we have set GHG emissions targets for 2030 and we are advancing activities for meeting these targets. We have also set and are pursuing targets for contribution
to reducing GHG emissions at a society-wide level through the supply of secondary battery cathode materials for use in automobiles and near-infrared absorbing materials produced by the Group.

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)
Approach and Policy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.
GRI 3-3• GHG emissions were 2,820
kt-CO2e (an increase of 5% compared to FY2013)• Adopted an internal carbon pricing (ICP) system and promoted
investment in reducing GHG
emissions• Purchased substantial renewableenergy• Advanced development of innovative smelting and refining
processes

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

• Implement measures for the 2021 3-YearBusiness Plan period and for each year withregard to reducing GHG emissions• Plan and expand various measures andconfirm the suitability of KPI targets forrealizing carbon neutrality by 2050

• Implement the roadmap for achieving KPIs
• Verify and revise roadmap and various
associated measures• Reduced GHG emissions intensity
by approximately 1% comparedto FY2013• Advanced investment in reducing
GHG emissions using the ICP
system• Purchased substantial renewableenergy• Reduce energy intensity by atleast 1% through stable operations, production increases, andother methods• Advance investment in reducing
GHG emissions using the ICP
system• Purchase substantial renewableenergy• Reduce GHG emissions intensity towardachieving the KPI target• Achieve the KPI target by reducing GHG
emissions intensity in line with the targetsof each 3-Year Business Plan

• Implement the measures for the 2021
3-Year Business Plan period and for eachyear with regard to reducing GHG
emissions• Plan and expand various measures, andconfirm the suitability of KPI targets forachieving reductions in GHG emissions
intensity• Implement measures for each 3-YearBusiness Plan period and for each year toachieve KPI targets• Verify and revise various measures

KPI 	Reduce GHG emissions
3. Expand contribution of GHG reduction by products contributing to a low-carbon society: 600 kt-CO2 or more
• Avoided emissions of 540 kt-CO2
through the supply of products
contributing to a low-carbon society, including a near-infraredabsorbing material for automobiles (CWO®) and battery
materials• Increase production of battery
materials and CWO®, and advance
product development• Increase avoided emissions by products
contributing to a low-carbon society• Increase number of products contributing
to a low-carbon society and revise KPItargets• Increase avoided emissions by products
contributing to a low-carbon society andachieve KPI targets during each 3-YearBusiness Plan period

Action Plan

The climate change risks identified through scenario analysis are monitored and measured by the Carbon Neutrality Committee,
which also takes corrective measures and revises strategies when necessary, and are reviewed by the Sustainability Committee.
Climate change risk is also managed by the Group’s risk management system and Risk Management Working Group, based on consideration of the impact on other individual risks such as occupational accidents, environmental pollution, quality failures, and legal
violations.

• Reduce GHG emissions in line with targets
and achieve KPI targets during each 3-YearBusiness Plan period

Achievement
Criteria

Risk Management• Maintain GHG emissions below the level of
FY2013• Develop a roadmap for realizing carbon
neutrality by 2050

KPI 	Reduce GHG emissions
2. Reduce GHG emissions intensity by at least 26% compared to FY2013

Action Plan

Short-, medium-, and long-term climate change risks and opportunities that could have a major impact on the Group’s business,strategy, or finances are identified based on analysis of climate change scenarios that anticipate various changes in the external
environment, including regulatory changes, technological progress, market changes, and natural disasters. We then consider the
impact of each of these on business and strategy in each area, such as products and services, R&D investment, operations, and GHG
emission reduction and response measures. Based on the results of this analysis, we formulate Group strategies for each climatechange risk and opportunity, and these are reflected in 3-Year Business Plans. These strategies are also discussed by the Carbon
Neutrality Committee and reviewed by the Sustainability Committee.

• R educe energy intensity by atleast 1% by using highly efficientfacilities, improving processes, andother methods•A dvance investment in reducing
GHG emissions (fuels transition,
introduction of renewable energy,etc.) using the ICP system• P urchase substantial renewableenergy•C ontinue development of innovative smelting and refining
processes•U pdate climate change scenario
analyses•D evelop a roadmap for realizing
carbon neutrality by 2050

Achievement
Criteria

Strategy

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	Reduce GHG emissions
1. C ontinuing 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

Governance
The Group’s material issues related to sustainability, including climate change, are identified along with KPIs through discussion bysenior management members and confirmed through a resolution of the Board of Directors. Climate risks, opportunities, and strategy pertaining to the Group are also reflected in 3-Year Business Plans, annual budgets, KPI targets, and other areas, and are confirmed through a resolution of the Board of Directors. The Carbon Neutrality Committee meets regularly to deliberate on andmanage climate change-related matters pertaining to the Group. Initiatives and performance in regard to KPI targets are thenreviewed by the Sustainability Committee and an overview is reported to the Board of Directors.

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Action Plan

Management Structure and Approach regarding the Material Issue of Climate Change(based on the TCFD recommendations)
GRI 3-3

FY2022 Results

Achievement Criteria

As a group that produces a significant amount of greenhouse gas (GHG) emissions through our businessactivities, we are committed to contributing to mitigating climate change by reducing global GHG emissions. We will do this by reducing absolute emissions and emissions intensity through operational
improvements and technological innovation, as well as expanding our business through the developmentof products that contribute to a low-carbon society, such as battery materials and near-infrared absorbing
materials.

42

GRI 3-3• Implement the measures for the 2021
3-Year Business Plan period and for eachyear with regard to increasing the numberof products contributing to a low-carbon
society• Conduct investigation and review toincrease the number of products contributing to a low-carbon society (R&D and market development), plan measures andconfirm suitability of KPI targets• Implement measures for each 3-YearBusiness Plan and for each year to achieve
KPI targets• Conduct investigation and review toincrease the number of products contributing to a low-carbon society (R&D and market development), and verify and revise
measures

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Environment

 Environment

Climate Change

Action for TCFD
In February 2020, we became a supporter of the Task Force on Climate-related Financial Disclosures (TCFD). We have not only listed
climate change as a material issue in Vision for 2030, which was formulated and released in March 2020, and strengthened efforts toachieve the vision of “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),” but also indicated that we will

move forward with disclosure of related information. The TCFD recommends that the disclosure of climate change-related risks andopportunities should be organized according to four core elements of corporate management and operations (governance, strategy, risk management, and metrics & targets), and we are disclosing information in line with these recommendations.
The Group responds to the CDP Climate Change Questionnaire annually regarding its GHG management.

Climate Change Scenario Analysis

GRI 201-2

We considered two scenarios for 2050.
1.5˚C scenario  A scenario in which ongoing efforts are made to keep the rise in average temperatures to within 1.5˚C. The IEA’s WEO 2019
Sustainable Development Scenario (SDS),1 Beyond 2°C Scenario (B2DS),2 and the IPCC’s special report “Global Warming of
1.5˚C”3 were information sources for this scenario.
4˚C scenario

Scenario

1.5˚C A scenario in which no countermeasures are taken, and temperatures are allowed to continue rising. Information sources
included the IEA’s WEO 2018 New Policies Scenario and the IPCC’s RCP4 8.5 Scenario.
Category

DriverClimate change
policyCarbon pricing (carbon taxes, emissions
trading, etc.)• Overall monetary amounts have risen(depending on nation or region)

Climate change
policyTightening of vehicle regulations, policy to promote LEVs

• Fuel consumption regulations have been tightened and restrictions on movement introduced• P olicy is supportive of EVs and LEVs
• Internal combustion-based vehicles havebeen replaced by LEVs

Society andinfrastructure

Progress of digitaltransformation
related to vehicles,changes in values• S elf-driving vehicles, MaaS5, and car-sharing
are common• Fewer households own cars

Technology

Development ofhydrogen technology, fuel cells• Fuel cell vehicles (FCV) are common• EVs and plug-in hybrid EVs (PHEV) arecommonClimate change
policyShift to electricalenergy• Electricity occupies a higher proportion of
final energy consumption

Technology

Technological shift
in automobile storage batteries

Society andinfrastructure

4˚C

Temperaturesand rainfall

Anticipated situation (2050)

Impact on business

Increased tax burden, etc.

• There has been a shift in the market share ofautomobile storage batteries

Increases in R&D costs and investment in low-carbon facilities
and equipment• Increase in sales due to growing demand for batteries and nickel
accompanying the spread of EVs• Increase in sales of nickel oxide powder and lithium-ion batteries accompanying the development of a hydrogen society andthe spread of FCVs
• Increase in sales of other products contributing to a low-carbon
society• Increase in demand for copper accompanying the strengthening ofelectrical grids (although there is competition from aluminum, etc.)• Rise in the proportion of nickel used in batteries and increased
sales of nickel accompanying efforts to move away from cobalt• Spread of solid state batteries that leverage SMM technology as
next-generation batteries• Spread of iron and manganese-based batteries accompanying
efforts to move away from cobalt• Spread of new batteries that do not leverage SMM technology
as next-generation batteries

Interest in matterssuch as sustainableprocurement,
environmental footprint, and the social
impact ofbusinesses• There is greater awareness regarding
sustainability• ESG investment is mainstream• There are more possible applications for alternative materials and recycled metals• Limits on raw materials sourcing, increase in materials and manufacturing costs, greater advantages due to owning our own
mines• Expansion of the automobile secondary battery recycling
business• Impact of ESG investment on financing• Reputational risk if SMM’s efforts are evaluated as insufficient

Rises in averagetemperature, sea
surface temperature,and sea levels• Sea levels have risen• Storm surges are more frequent

Decline in port functionality, greater risk of storm surges, possibility of facility-based countermeasures needing to be taken atsome coastal business sites•H eavy rains and typhoons are more frequent• Increased risk of flooding and water shortages depending on region

Increase in risk of flooding or water shortages at business sites incertain regions, possibility of facility-based countermeasuresneeding to be taken
Decline in operations at key suppliers, decline in plant operations
due to interruptions to procurement and shipping routes
Possibility of facility-based countermeasures needing to be taken
due to the increased risk of damage to tailing dams

Increase in abnormal climate events,
such as heat waves,
flooding, and water
shortages

1. A scenario published by the International Energy Agency (IEA), and adopted in World Energy Outlook (WEO) 2019, a report that presents the outlook for energy supply and demand
and technological developments, and analyzes the path that should be followed to fully achieve the goals set forth in the Paris Accords
2. A scenario in “Energy Technology Perspectives 2017” (ETP 2017) published by the IEA
3. A report published by the Intergovernmental Panel on Climate Change (IPCC)
4. Representative Concentration Pathways (RCP)

Risk and opportunity(medium- to long-term)
Risk

SMM Group approach: Initiatives for realizing Vision for 2030

• Climate Change: Reduce GHG emissions

Large

Risk

Short- to long-term, large

P.42-50• Climate Change: Reduce GHG emissions
P.42-50• Effective Use of Non-Ferrous Metal Resources
P.32-39
Improve productivity by introducing new technology, Advance nickel ore projects and improve productivity

Opportunity

Large• Climate Change: Reduce GHG emissions
P.42-50• Effective Use of Non-Ferrous Metal Resources
P.32-39
Advance nickel ore projects and improve productivity, Develop technology to create value from unused non-ferrous metal resources,
Leverage our strengths to create new products and new businesses that contribute to society, Hold raw materials in-house for favorable
and stable procurement, Expand sales of low-cost battery cathode materials through favorable, stable procurement of our own nickel raw
materials

Opportunity

Large• Effective Use of Non-Ferrous Metal Resources
P.32-39
Advance copper mine projects, Acquire new superior copper and gold resources

Opportunity

MediumRisk

MediumOpportunity

Medium• Climate Change: Reduce GHG emissions
P.42-50• Effective Use of Non-Ferrous Metal Resources
P.32-39
Advance nickel ore projects and improve productivity, Develop technology to create value from unused non-ferrous metal resources,
Leverage our strengths to create new products and new businesses that contribute to society, Hold raw materials in-house for favorable
and stable procurement, Expand sales of low-cost battery cathode materials through favorable, stable procurement of our own nickel raw
materials• Effective Use of Non-Ferrous Metal Resources
P.32-39
Advance copper mine projects, Acquire new superior copper and gold resources, Advance nickel ore projects and improve productivity, Hold raw
materials in-house for favorable and stable procurement, Demonstrate and commercialize automobile secondary battery recycling technology• Human Rights in the Supply Chain:
P.120-123
Promote sustainable procurement, particularly responsible mineral sourcing• Rights of Indigenous Peoples:
P.116-119
Understand indigenous peoples and their traditions and culture, Support initiatives that lead to respect for the traditions and cultures ofindigenous peoples

Risk

Medium to large

Risk

Large

• Significant Environmental Accidents and Biodiversity: Zero significant environmental accidents

P.52-63

Risk

Large

• Significant Environmental Accidents and Biodiversity: Zero significant environmental accidents

P.52-63

Risk

Large

• Significant Environmental Accidents and Biodiversity:
P.52-63
Zero significant environmental accidents, Reduce emissions of hazardous substances

Risk

Large

• Significant Environmental Accidents: Zero significant environmental accidents

P.56-57, P.64-68

5. Mobility as a Service (MaaS): a service that optimally combines multiple transportation services (buses, trains, cabs, airplanes, etc.) and performs search, reservation, payment, etc. all at once

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Environment

 Environment

Climate Change

GHG Emissions (Scope 1 and 2) 

GRI 305-1/305-2/305-5

Group GHG emissions for FY2022 were 2,823 kt-CO2e due to increases in production volumes, while direct GHG emissions reductions due to energy saving and other activities in FY2022 amounted to approximately 6 kt-CO2e. Additionally, the solar power plant
operated by SMM in Kashima, Ibaraki Prefecture helped to reduce emissions by approximately 1.5 kt-CO2e in FY2022.
Details regarding Scope 3 GHG emissions are described on p. 50.
Scope 1: Direct GHG emissions generated by a business (due to fuel consumption, industrial processes, etc.)
Scope 2: Indirect GHG emissions generated through the use of electricity, heat, and steam supplied by other companies
Scope 3: Indirect GHG emissions not covered by Scopes 1 or 2 (emissions from other companies with a connection to the business’
activities)

 Breakdown of the SMM Group’s GHG Emissions (FY2022)(kt-CO2e)

Japan
484
854
1,339

Scope 11
Scope 22
Total

Overseas
1,480
4
1,484

Energy and GHG Emissions Intensity Indices* (Scope: Smelting & Refining Business in Japan) In FY2022, the energy intensity of the Smelting & Refining Business inJapan improved by approximately 5% year on year. This was due to
production increases.
SMM is a member of the Japan Mining Industry Association (JMIA),
an organization of non-ferrous mining, smelting and refining companies, and we are participating in the Carbon Neutrality Action Planbeing led by the Japan Business Federation (Keidanren).
We will continue to proactively engage in thorough energy management, the promotion of energy-saving activities, the introductionof renewable energy, the use of unutilized heat, and other endeavors
with the aim of reducing energy intensity by an average of at least
1% per year and further lowering CO2 emissions over the medium tolong term.
* Energy and GHG emissions intensity indices: the amount of energy consumed and GHGs emitted during the production of 1 ton of product (In the graph on the right, FY1990 is the baseyear with a value of 1)

Total
1,965
858
2,823

Energy and GHG emissions intensity indices

GRI 302-3/305-4/305-5

1.1

1.0

1.00
1.00

0.9

0.8

0.70

0.7

0.66
0.65

0.6

0.5
(FY)

1990

2018

Energy intensity index  

0.65

0.65

0.63

0.64

2020

2021

0.67

2019

0.62
0.60
2022

GHG emissions intensity index

P.70

SMM Group’s Approach to Reducing GHG Emissions GHG Emissions (Scope 1 and 2)(kt-CO2e)
4,000

3,531

3,500
3,000

3,227
2,802

2,698

2,820

2,809

2,807

2,760

2,647

2,823

If we continue with our current Group business model (BAU*), then Scopes 1–3 GHG emission volumes are predicted to rise inaccordance with business growth. We will aim to reduce emissions volumes by implementing in-house measures for Scope 1 and 2
emissions, such as energy transition, and by cooperating with suppliers for Scope 3 emissions. Furthermore, we will actively contribute to reducing GHG emissions at a society-wide level through the supply of products contributing to a low-caron society produced by the Group, including secondary battery cathode materials for automobiles and near-infrared absorbing materials.
*BAU: business as usual

2,500
2,000
1,500

 Visualization of GHG Emissions Reductions Visualization of Contribution to GHG Emissions
Reductions

1,000
500
0
(FY)

Increase due to business growth

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Energy saving and energy transition, use of renewable energy,
development and use of innovative technologies, etc.

 Smelting & Refining Business in Japan    Mineral Resources Business in Japan    Battery Materials Business and Advanced Materials Business   Other businesses in Japan    Smelting & Refining Business overseas    Mineral Resources Business overseas    Materials Business overseas
1. Both Japan and overseas figures are calculated based on the GHG Protocol, and emission factors are based on the Japanese law “Act on Promotion of Global WarmingCountermeasures”
2. GHG emissions factors for electric power purchased in Japan are the adjusted emissions factors of electric suppliers
For China and Taiwan, the latest emission factors published by the governments of those countries are used
For Vietnam, the default emission factor compiled by The Climate Registry (TCR) (2011 national emission factors published by the International Energy Agency (IEA) in 2013) is used

GHG Emissions

Increased production andsupply of products contributing
to GHG emissions reductions at
a society-wide level
Development and launch of
products that are effective for
reducing GHG emissions

P.70
CarbonneutralCurrent

BAU

Medium termLong term

Current

Medium termLong term Scope 1    Scope 2    Scope 3

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Environment

 Environment

Climate Change

Main Climate Change Countermeasures

3 Realizing a Stable Supply of Non-Ferrous Metal Resources

We are working to counter the effects of climate change, primarily through the following four measures.

1 Reduction of GHG Emissions in the Production Process
We are working to reduce GHG emissions generated in the production process through a medium- to long-term approach outlined below.

Energy saving

Energy transition

E.g., Upgrade to highly efficientfacilities, improve production
processes, introduce AI and
IoTE.g., Transition to LNG, electricity,hydrogen, and biofuels

Utilizing external technologies, businesses,
and policies
E.g., New CO2 -free fuels such as synthetic
methane, hydrogen, and ammonia as
renewable energy sources
Carbon capture, utilization, and storage(CCUS) technology

Using Internal Carbon Pricing
The SMM Group implemented Internal Carbon Pricing (ICP), an action in which companies set an in-house carbon price to promote
capital investments for decarbonization and energy savings and consider GHG emission reductions as a capital investment effect.
Since introducing an ICP in September 2020, we have moved forward with decarbonization investments that make active use of
ICP at business sites. Specifically, in addition to energy-saving investments, such as introducing LED lighting and replacing to highly
efficient air conditioning equipment, we are actively taking on various challenges, including those related to solar power and a fueltransition from heavy oil to LNG, which previously could not be undertaken because of poor investment return. We plan on further
expanding ICP measures.
Anticipated CO2 emissions reduction

Investments subject to ICP

1

The main mineral resources for renewable energy, which is a major trend in realizing a carbon neutral society, and used in the electrification of EVs and other vehicles are shown in the table below. We provide many of these materials. We are also developing technologies for the efficient recovery of lithium from salt lake water and studying its industrialization.
The exact metal usage per vehicle increases as electrification advances, with copper requiring 3.6 times the weight equivalent of agasoline-powered vehicle. We believe that meeting the growing demand for such materials is an important role that our Groupshould fulfill.

System and Fundamental Technology

Renewable energy
sector33

76,755

Batteries, motors,
etc.

Automobile sector

Copper, aluminum, rare earths

Solar power generation

Indium, gallium, selenium, copper

Geothermal power generation

Titanium

Large-capacity storage batteries

Vanadium, lithium, cobalt, manganese, copper

Lithium-ion batteries

Lithium, cobalt, nickel, manganese, copper

Solid-state batteries

Lithium, nickel, manganese, copper

High-performance magnets

Rare earths

Fuel cells (electrodes, catalysts)

Platinum, nickel, rare earths (scandium)

Hydrogen tanks

Titanium, niobium, zinc, magnesium, vanadium* Materials in a blue font are produced by the Group Metal Used per Vehicle (kg)Co

0
Cobalt 0.2 3.5

Ni0
Nickel 0.5

Li0Lithium 0.12.2

Cu

Copper(t-CO2/year)2

1. Covers investments for which the application of the system was decided between 2021 andMarch 2023
2. As this includes investments that will be implemented from FY2024 onward, the period in which
effects manifest and the period in which application was decided are not concurrent

Power generation
and batteries Internal combustion engine vehicle (ICE) Hybrid electric vehicle (HEV) Plug-in hybrid electric vehicle (PHEV) Electric vehicle (EV)

11

8.7

27.5

7.2

 ICP System Application Examples
Toyo Smelter & RefineryTransition from heavy oil to LNG as fuel for some heat supply equipment (to be completed in stages from FY2023 to FY2025)

Niihama Nickel RefineryTransition from heavy oil to LNG as boiler fuel (to be completed in FY2023)

Harima RefineryTransition to electricity generated from renewable sources for 100% of purchased electricity (underway since FY2022)

Hishikari Mine

Transition to electricity generated from renewable sources for 100% of purchased electricity (underway since 2023)

CBNC

Transition to co-firing by replacing some fuel coal with woody biomass (currently being trialed)

Main Metal Resources Required*Wind power generation

23

0

10

20

40

30

40

60
50

60

3.6 times the amount required by ICE
83
70

80

90

Source: The Agency for Natural Resources and Energy’s Mineral Resources Policy for Achieving Carbon Neutrality in 2050

4 Establishing Innovative Technologies that Support Decarbonization
2 Development and Supply of Products that Contribute to a Low-Carbon Society
Products or materials that contribute to reducing GHG emissions at a society-wide level through their production and supply by
our Group are positioned as low-carbon products, and their development and supply to the market are actively promoted. In
FY2022, they contributed to reducing GHG emissions by 540 kt-CO2e.** Of our products, the combined value that cathode materials for automobile batteries and near-infrared absorbing material (CWO® (only for automobile glass)) from objectively calculated technical data provided by the public or by customers

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In achieving carbon neutrality for our Group, it is essential to develop innovative technologies that lead to a dramatic reduction in
GHG emissions within smelting and refining operations, which account for 90% of our total emissions, and to apply these technologies to our production processes. In copper smelting and refining, we are developing hydrogen reduction technology to reducecoal consumption, and for nickel smelting and refining, we are developing a next-generation process and CO2 fixation technology.
We have our eye on the future as we work in collaboration with multiple universities and companies to proactively pursue
next-generation technology.

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Environment

 Environment

Climate Change

GHG Emissions in the Value Chain (Scope 3)
Scope 3 GHG emissions generated in FY2022 amounted to
4,530 kt-CO2e. The percentage of Category 1 emissions out of
overall Scope 3 emissions was high, so we will communicate
with business partners to make the calculation of Scope 3
emissions volumes more accurate and we will set reduction
targets.

GRI 305-3

Scope 1

Scope 32
Indirect emissions not covered by Scopes 1 and 2

Direct emissions

26.7%

61.6%

(1,965 kt-CO2e)(4,530 kt-CO2e)Overall
GHG emissions1
Emissions related topurchased goods
and services

7,353 kt-CO2e
Scope 2(Category 1)

Indirect emissions

50.8%

11.7%

(858 kt-CO2e)
1. Scope includes the entire SMM Group (however, data for Category 5 to 7 only covers Group companies in Japan)
2. Excludes Categories 8–12, 14, and 15

 Scope 3 Emissions and Percentage of Overall Emissions
EmissionsCategory(kt-CO2e)

Total Scope 3 Emissions

Percentage

Calculation Method

4,530

61.6%

1. Purchased goods and services

3,737

50.8%

Σ (weight of key raw materials x emissions intensity)1

2. Capital goods

518

7.0%

Σ (amount of capital expenditures x emissions intensity x 1.05)2
Capital expenditures include construction in progress, used equipment,
and intragroup transactions

3. F uel- and energy-related activities notincluded in Scope 1 or Scope 2

239

3.3%

Σ (electricity and fuel consumptions x emissions intensity [electricity,2
fuel1])

4. U
 pstream transportation and distribution

26

0.3%

Emissions from domestic transportation are calculated based on theJapanese laws the “Act on Rationalizing Energy Use” and “Act on
Promotion of Global Warming Countermeasures.”

5. Waste generated in operations

7

0.1%

Σ (amount of waste by type (major sites in Japan) x emissions intensity by
waste type)2

6. Business travel

1

0.0%

Σ (number of employees (major sites in Japan) x emissions intensity)1

7. Employee commuting

3

0.0%

Σ (number of employees (major sites in Japan) x number of business days x
emissions intensity)2

8. Upstream leased assets

Not applicable3

9. Downstream transportation anddistribution

Not applicable4

10. Processing of sold products

Not applicable4

11. Use of sold products

Not applicable4

12. End-of-life treatment of sold products

Not applicable4
0.0%

Σ (electricity and gas consumption by tenants of the Head Office buildingx emissions intensity)5

13. Downstream leased assets

0.2

14. Franchises

Not applicable6

15. Investments

Not applicable7

Scope includes the entire SMM Group (however, data for Category 5 to 7 only covers Group companies in Japan)
1. For emissions intensity, we used values from the National Institute of Advanced Industrial Science and Technology’s IDEA Ver. 3.3
2. For emissions intensity, we used values from the Database for Calculating GHG Emissions of the Supply Chain, Ver. 3.3, prepared by the Ministry of Environment and the Ministry of
Economy, Trade and Industry in Japan
3. Not applicable as it is included in calculations of Scope 1 and 2 emissions
4. This category is not applicable because it is difficult to calculate emissions since our products are mainly non-ferrous metals and highly advanced materials, which have diverse
applications after sales destinations, and each application has different GHG emission characteristics
5. Emissions intensity was calculated based on the list of calculation methods and emission factors of the Ministry of the Environment’s Greenhouse Gas Emissions Calculations
Reporting and Publication System
6. Not applicable as we do not operate any franchise businesses
7. Not applicable as it is the disclosure of information on investments for profit

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Environment

 Environment

Significant Environmental Accidents / Biodiversity

Vision for 2030

FY2022 Results

Achievement
Criteria• Maintain zero significant environmental accidents• Maintain zero significant violations• Eliminate significant environmental
compliance violations• Maintain zero significant environmental accidents• Maintain zero significant violations• Eliminate significant environmental
compliance violations

Action Plan

• Establish targets to strengthen ourability to address environmental conservation using our RMS and EMS at allsites, and implement PCDA cycles
while continuing initiatives in line with
our plan• Strengthen management based onrisk registration / management as significant environmental aspects- Strengthen communication with sitemanagers, including patrols- Provide education and support for
improving competence of environmental staff- Invest in improving treatment ofwastewater and exhaust gas• Strengthen management based onrisk registration / management as significant environmental aspects- Respond to tighter laws andregulations• Invest in improving treatment ofwastewater and exhaust gas and promote investment in remote, automation and other cutting-edge
technology (DX)• Reduce transfers and emissions of hazardous substances through continuous
improvements• Implement initiatives on water anddisclose information• Promote improvements and enhancements based on risks• Analyze PRTR data and provide feedback
to sites and support based on results• Consider and formulate water policy• Promote improvements and enhancements based on risks• Continue to promote action based on
PRTR data improvement and results• Promote water policy and initiatives• Continued regular reforestation
CBNC: 38 ha
THPAL: 59 ha• Identified trends in Japan and overseas
on disclosure of biodiversity
information• Continue regular reforestation• Consider formulation of biodiversity
policyAction Plan

FY2023 Plan

Final Year of 2027 3-Year Business
Plan (FY2030)• Reduce transfers and emissions of hazardous substances through continuous
improvements• Publish water policy and implement
initiatives

KPI 	2. Reduce emissions of hazardous substances (year-on-year)
2) Promote various environmental preservation and biodiversity preservation activities, such as regular reforestation

GRI 3-3/303-1

KPI 	1. Zero significant environmental accidents
1) Promote improvements through the use of risk management and environmental management systems• No significant environmental accidents
or violations occurred due to implementation of management improvements using a risk management
system (RMS) and an environmental
management system (EMS)• Systematically continue to address targets for emissions of hazardous substances at each site
• Establish the water policy (June 1,
2023)

Achievement
Criteria

P.40

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.
FY2022 Results• Implement risk assessment using the
WWF Water Risk Filter and countermeasures for each site based on the results• Link with activities of the Carbon
Neutrality Committee

Action Plan

• Further improved emissions of hazardous substances at each site
• Considered a draft water policy for the
Sumitomo Metal Mining Group

Matters concerning significant environmental accidents as well as biodiversity are primarily advanced by the Environmental
Preservation Subcommittee* and the Safety & Environment Control Department.

Final Year of 2021 3-Year Business
Plan (FY2024)• Implement risk assessment using the
WWF Water Risk Filter and countermeasures for each site based on the results• Link with activities of the Carbon
Neutrality Committee

KPI 	2. Reduce emissions of hazardous substances (year-on-year)
1) Optimize water use; reduce emissions of hazardous substances to the atmosphere and water

GRI 3-3

Medium-Term Targets and Progress• Based on results of climate change scenario analysis review, identify risks, consider and implement countermeasures• Establish standards and guidelines forresponding to increasingly severe rainstorms and promote improvements
and enhancements• Revise BCPs

Achievement
Criteria

Promotion Structure• Based on results of climate change scenario analysis review, identify risks, consider and implement countermeasures• Establish standards and guidelines forresponding to increasingly severe rainstorms and promote improvements
and enhancements• Revise BCPs

Action Plan

Significant environmental accidents have major impacts on the environment and communities, and canresult in loss of the trust that is a prerequisite for business continuity. In particular, the SMM Group’s business activities have the potential to cause environmental pollution through such means as the leakage ofmining waste and chemicals. By improving our facilities and management to address such risks as well as
intensifying natural disasters, we are working to prevent significant environmental accidents and mitigate
impacts in the event of occurrence.
We are also working to sustainably utilize and manage water resources and to reduce our emissions ofharmful substances into the atmosphere and water, and are developing environmental conservation activities that place importance on biodiversity.
In FY2022, there were no significant environmental accidents which would have a serious impact on theenvironment or society.

* Environmental Preservation Subcommittee• Continue to implement risk assessment using the WWF Water Risk Filter• Continue to identify risks at each site,and consider countermeasures

Achievement Criteria• Implemented risk assessment using
the World Wide Fund for Nature(WWF) Water Risk Filter• Identified risks at each site, and considered countermeasures

GRI 3-3

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	1. Zero significant environmental accidents
2) Reinforce and improve equipment and infrastructure to address increases in sources of natural hazard

A company that values water resources and biodiversity, andprotects the richness of the sea and land
Approach and Policy

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

• Continue regular reforestation• Formulate initiatives and policy onpreserving biodiversity• Continue and review regularreforestation• Continue to improve initiatives on preserving biodiversity• Promote reforestation by CBNC andTHPAL and continue communication
with mining companies through thetwo companies• Examine and analyze nature-relatedrisks and opportunities• Promote reforestation by CBNC andTHPAL and continue communication
with mining companies through thetwo companies• Continue to promote measures tocounter nature-related risks

Chemical Substance Management
Because chemicals are frequently handled in the SMM Group, we have established a chemical substance management system
within the environmental management system (EMS) at all business sites under divisional jurisdiction. For example, when a business site intends to handle a new chemical, it conducts a preliminary study that covers hazard statements, laws and regulations,and other applicable information, and deliberates in a meeting at the business site before deciding whether to adopt the handlingof said chemical. In addition, the business divisions and Safety & Environment Control Department cooperate with requests for preliminary consultation and verification from the business site.
Further, we also provide information on safe handling for all chemicals transferred or provided to customers or other businesssites in the SMM Group using safety data sheets (SDS)1 which conform to the Globally Harmonized System of Classification andLabelling of Chemicals (GHS),2 regardless of whether or not we are legally obligated to do so.
When developing new materials, we strive to develop materials that customers can use safely and with peace of mind. We review
development themes taking into account the toxicity of contained substances, including as pertains to domestic and international
regulations for final products as well as the environmental impact of production processes.
Products for export to the EU are also subject to the RoHS Directive and the REACH Regulation,3 enacted with the aim of protecting human health and the environment, and we address these accordingly.
1. Safety data sheet (SDS): A document listing information on a chemical, including the chemical substance, the product name, the supplier, hazards, safety precautions and emergency procedures
2. The Globally Harmonized System of Classification and Labeling of Chemicals (GHS): A system for classifying chemicals based on the type and degree of hazards and toxicity they pose, chemical labeling, and safety data sheet provision in accordance with a set of internationally-agreed upon rules
3. REACH Regulation: The Regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals. An EU regulation concerning the registration, evaluation, approval, and limiting of chemical substances

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Environment

 Environment

Significant Environmental Accidents / Biodiversity

Sumitomo Metal Mining Group’s Water Policy

1 Context

6 Monitoring and Reporting

Sumitomo Metal Mining (“SMM”) Vision for 2030 has been formulated as a milestone for the realization of our longterm vision of Becoming the World Leader in the Non-Ferrous Metals Industry. In our “Vision for 2030”, we believe it
is important to be a company that protects oceans and land with consideration for water resources and biodiversity. The SMM Group requires large amounts of water in its production processes, mainly in its mining and metals
operations, and water is an indispensable resource for its business activities. At the same time, water is an essential
shared resource for local communities and the surrounding ecosystem. To achieve our vision, we set goals to optimize water use and reduce emissions of hazardous substances to water.
This Water Policy guides our commitment for sustainable use and management of water resources across all ouroperations.

We are committed to disclosing our water performance and progress towards our targets so that stakeholders canbe informed and actively involved in our sustainability journey.
 We will set and regularly review water management objectives and set context-based water targets.
 We will proactively monitor our water performance and collect water consumption data.
 We will publicly report on our water management performance, material risks and provide updates on progressagainst our targets using consistent industry metrics and recognized approaches.

Access to water is critical to the communities in where we operate. While we recognize and continue to focus on
the positive impacts that our management system can facilitate, the risks associated with broader social and economic water-related impacts in the region.

2 ScopeThis policy applies to the entirety of SMM’s business (SMM and its subsidiaries), unless any aspect of the Policy is not
permitted by local law or regulations.
3 Governance & Promotion framework
The Environmental Preservation Subcommittee, a subcommittee of the Sustainability Committee chaired by the
President, will report regularly to the Sustainability Committee, which is overseen by the Board of Directors, on thestatus of compliance with this policy and promote water-related initiatives.
4 Water Policy Principles
As an ICMM (International Council on Mining and Metals) member, we aligned this Policy with ICMM member’s
approach outlined in the ICMM position statement on water stewardship. SMM has adopted the following principles with respect to water issues and risk management.
 SMM will align its business strategy with identified risk and opportunities.
 SMM will monitor and report on our efforts and results.
 SMM will engage with key stakeholders.
5 Business Strategy & Operations
Water is essential to our business. It is vital we drive responsible water use across our operations, minimize our environmental impact on water resources and invest in projects and technology for water management.
 We will consider water impacts and integrate water management into our business strategy and operational
decisions.
 We will identify and proactively manage water related risk and opportunities including those associated withwater quality, water scarcity.
 We will support and implement water stewardship initiatives and projects that promote better water use, reduce
freshwater use, have effective catchment management and contribute to improved water security and sanitation.
We will ensure provision and access to clean and safe drinking water and sanitation facilities at all our sites.
 We will develop and invest in technology and innovation for effective water management.

54

SUMITOMO METAL MINING CO., LTD.

7 Engagement

Sustainability Report 2023

We recognize the importance of working with our stakeholders to promote effective water governance and stewardship. We will support collective action to improve water policies, regulations and address shared water challenges in communities and value chains.
 We will advocate for responsible water usage practices and increase water stewardship awareness with our key
stakeholders, including employees, suppliers and customers.
 We will educate all officers and employees of the Group on understanding this policy and water-related initiatives.
 We will engage with communities and stakeholders who may be affected by a site’s water use and wastewater
discharge to address shared water management issues.
 We will establish and maintain a grievance mechanism that is accessible to our stakeholders.
 We will engage with governments and local authorities in the areas in where we operate on water-related public
policy and regulation.
8 Review
This water policy will be reviewed periodically by the Chairman of the Environmental Preservation Subcommittee
and, if necessary, changes will be approved by the Board of Directors.
Akira Nozaki
President and Representative Director
June 1, 2023

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

55

Environment

 Environment

Significant Environmental Accidents / Biodiversity

Water Risk ManagementGRI 303-1

Water is a shared resource of local regions and is closely connected to the lives of local residents and communities, as well as to thesurrounding ecosystem. In addition to identifying water risks using WWF Water Risk Filter and then reducing those risks, our Group
gives consideration to local communities and the environment in areas where we use water and are working with a sense of
responsibility to make good use of the limited water resources.
Example Initiatives

Tailings and other mining waste generated by mines accumulate at storage facilities. The breach of an accumulation site
could potentially cause significant damage.
Accordingly, going forward, we will continue to soundly manage closed mines
while also engaging in facility and infrastructure strengthening and improvement.

• Prevention of excessive water withdrawal by understanding the amounts of withdrawal by source• Reduction of water withdrawal and discharge amounts by promoting the use of recycled and reused water• Promotion of effective use of water by understanding water balance and optimizing our amounts used
• Reduction of environmental impact by reducing amounts of hazardous chemical substances in effluent discharged into water• Promotion of preservation of biodiversity through aquatic life monitoring surveys near our business sites• Promotion of infrastructure development in areas where access to water is difficult

 Decommissioned and Closed Domestic Mines(as of July 1, 2023, dates in parentheses are closure/suspension dates)

SMM’s management of decommissioned
and closed domestic mines includes
daily, 24-hour treatment of wastewater
discharged from mines and accumulationsites, and maintenance of old drift andslag and waste rock storage facilities, inorder to prevent mine pollution.

Kounomai Mine
(October 1973)

Management framework fordecommissioned and closed mines
Yoichi Mine
(October 1963)

Kunitomi Mine

Kitami Mine

(March 1945)(October 1963)

Omiya Mine
(June 1950)

Yaso Mine

Okuchi Mine

(October 1970)(September 1977)

Sazare Mine
(July 1979)

At Coral Bay Nickel Corporation (CBNC) in Palawan Island, the Philippines makes effective use of water resources because thearea is prone to water shortages during the dry season. For example, they treat supernatant water that accumulates in tailings dams
at recycling facilities and then reuse the water in their smelting and refining processes. The company also supplies this water as
industrial water to lime slurry producers, who are suppliers for the company. Furthermore, CBNC provides, maintains, and manages
water supply equipment and delivers drinking water using tanker trucks as necessary as part of its water-related contributions tolocal communities. In addition, a team that consists of members from the Environmental Management Office (EMO), the department that conducts environmental management activities for the company, local governments, NGOs, and other entities, strives toreduce the environmental effects of discharge by conducting regular water quality tests to determine if plant operation is having amajor impact on water in the surrounding area.
The SMM Group also completes an annual CDP’s water security questionnaire regarding its water management. Further, on June
1, 2023, we established the Sumitomo Metal Mining Group’s Water Policy to summarize and clarify our approach to water.

Managing Tailings Dams

GRI 306-1/306-2/G4-MM3

Tailings facilities in which tailings from mines are dumped may collapse and cause considerable damage.
In August 2020, Global Tailings Review (GTR) formulated the Global Industry Standard on Tailings Management (GISTM). The
International Council on Mining and Metals (ICMM)* is committed to compliance with GISTM, and as a member of ICMM, we areconducting investigations to comply with the standard.
Our Group thoroughly implements measures to prevent significant environmental accident at closed mines that it manages andtailings dams managed by CBNC and Taganito HPAL Nickel Corporation (THPAL), both of which are located in the Philippines.
Based on the GISTM, in August 2022, we disclosed on our website tailings dams with a risk classification of “Very High” or higher(one managed by CBNC and one managed by THPAL). P.64-68* ICMM

P.130

Managing Decommissioned and Closed Mines

GRI 306-1/306-2

The SMM Group appropriately manages the top soil, waste rock, tailings, sludge, and other mining waste generated in accordancewith our resource business. Rock (waste rock) containing sulfide ores, in particular, can easily result in the production of water that
contains heavy metal ions as well as acidic water due to sulfate ions from oxidation, and accordingly we appropriately treat effluent
at a water treatment facility prior to discharging it.
As shown in the map of closed mines managed by SMM, we operate 42 slag storage facilities in Japan.
Legal standards regarding the stability of storage facilities were revised after the Great East Japan Earthquake in 2011. Afterassessments were conducted based on these revised standards, 11 sites were found to be insufficient, and by 2018 we had finishedconstruction to strengthen these sites, investing a cumulative total of approximately ¥4.5 billion.

56

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

Besshi Copper Mine
(March 1973)

Rehabilitating Tailings Dams

GRI 306-1/306-2

CBNC and THPAL produce intermediates for electrolytic nickel and nickel sulfate. At tailings dams, the slurry after the recovery ofnickel through the production process is treated through neutralization to eliminate toxins and precipitate heavy metals. The
treated slurry is then pumped to the tailings dam where it allows the solids to settle down.
When the storage capacity of the tailings dams is reached, the site is rehabilitated in order to establish an independent and sustainable ecosystem. Rehabilitation does not simply mean greening, but also making it possible for the area to return into its originalstate which is conducive to sustaining a natural ecosystem. This involves agroforest technology wherein the forest is establishedalongside agricultural farming. Thus, vegetables and fruits are also grown in the area. Many local residents and indigenous people
are involved in this work, and rehabilitation plays an important role in creating local employment.
Rehabilitated area P.73
Details on business activities in areas of high biodiversity value

P.73

Reducing the Environmental Impact of Constructing New Plants
To construct a refinery in the Philippines, we first had to obtain an Environmental Compliance Certificate (ECC) from the
Department of Environment and Natural Resources-Environmental Management Bureau (DENR-EMB), and we submitted an
Environmental Impact Assessment (EIA).
When constructing the refinery, we sought adequate dialogue with the Philippine government, local authorities and local citizens right from the planning stage. Efforts were made to construct a plant that would have a minimal impact on the environment.
For example, the pier used to deliver sulfuric acid and methanol to the plant was made to circle around the coral reef, and wastewater outlets were also positioned to ensure the reef’s protection.
CBNC began the operation of the refinery in April 2005 based on a design certified by the DENR-EMB, and was followed by
THPAL in October 2013. The refineries have set up Environmental Management Offices (EMO) that are primarily responsible in promoting environmental initiatives of the operations. Besides environmental surveys by the EMO, the environment is monitored by ateam of representatives from organizations such as the DENR, local authorities and NGOs which carry out regular sampling of theair, water, flora and fauna. With this sort of environmental monitoring, we check that the construction and operation of plants do
not have serious impacts on the ecosystem, while keeping environmental impacts from wastewater and other factors to aminimum.
Through our efforts in this area, CBNC and THPAL have been awarded the Philippines DENR-EMB’s Presidential Mineral Industry
Environmental Award (PMIEA) eight times and two times, respectively between 2014 and 2022.

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

57

Environment

 Environment

Significant Environmental Accidents / Biodiversity

Environmental Impact of Business Activities (material flow)
INPUT (resources & energy)

12,840 kt

Energy Input2 22,762 TJ

Percentage of Recycled Input Raw Materials Used

2.21%

Total Energy Consumption

Raw Materials
TotalGold and silver ore
Copper concentrates
Nickel oxide ore
Nickel matte, etc.
Raw material for batteries
ALC raw material, incl. silica rock
Hydrotreating catalyst raw material
Total
Recycled Materials1
Copper scrap
Secondary zinc
Precious metals and other secondary materials
Electric arc furnace dust
ALC waste
Materials
Total
Silica sand (for copper smelting)Chemicals (lime-based)
Chemicals (sodium-based)
Chemicals (magnesium-based)
Sulfuric acid
Cement, etc.

10,424 kt
202 kt
1,493 kt
8,418 kt
37 kt
85 kt
150 kt39 kt
236 kt122 kt
11 kt
5 kt
97 kt
848 t
2,180 kt
115 kt1,313 kt
102 kt15 kt
545 kt91 kt

Non-Renewable Energy Sources Total
Heavy oil
Coal/coke
Diesel/gasoline/kerosene
LPG/LNG
City gas/natural gas
Purchased electricity
Purchased steam3
Renewable Energy
Total
Solar power generation,
binary power generation
Biomass steam

Products

Energy Value

Consumption

22,696 TJ
1,783 TJ
13,778 TJ
997 TJ
414 TJ
605 TJ
5,120 TJ
0 TJ
66 TJ

44,516 kL
533,553 t
26,529 kL
8,143 t13,477 ML
1,422,101 MWh
75 GJ

1 TJ

295 MWh

65 TJ

63,544 GJ

Water Withdrawal

4

197,186 ML

Total Water Consumption from All Areas5 3,552 ML
Freshwater Withdrawal
Total
Surface water (rivers)
Rainwater
GroundwaterIndustrial water (water from another organization)
Tap water (water from another organization)
Seawater Withdrawal
Total

GRI 303-4/305-1/305-2/305-7/306-1/306-2/306-3/G4-MM3

2,676 kt

Percentage of Products from Recycled Input

Emissions
Emissions into the Atmosphere

7.42%

Electrolytic copperGold
SilverElectrolytic nickel
Nickel sulfate
Electrolytic cobalt
Crude zinc oxide
Chromite1
Ferronickel
Battery materials
Sulfuric acid
Slag
Hydrotreating catalysts
ALC (Siporex)

447 kt
18 t
228 t
53 kt
12 kt
4 kt
43 kt
69 kt
52 kt
61 kt
312 kt1,417 kt
10 kt
303 ML

Business Activities

Raw Material Input

OUTPUT (products & emissions)

GRI 301-1/301-2/302-1/303-3/303-5

GHGTotal
Scope 1 (direct emissions)2
Scope 2 (indirect emissions)3
SOx
NOx
Soot and dust

Discharge into Water

2,823 kt
1,965 kt
858 kt
1,715 t1,512 t
68 t

132 t

COD
BOD
Total phosphorus
Total nitrogen

49 t
16 t
1t
66 t

Release of Chemical Substances(PRTR substances) 84 t
Atmosphere
Public water areas
Soil/landfills on business premises

37,686 ML
15,321 ML
44 ML
7,586 ML
14,346 ML
391 ML
159,500 ML

Total Water Discharge

8t
75 t
1t

196,736 ML

Discharges into seas4
Discharges into rivers
Sewerage, etc.

Waste5, 6, Total waste

195,792 ML
879 ML
65 ML

6,946 kt

Of which, 6,846 kt is landfill on company premises and 2,438 t is PRTR
substance transfers7
Spoil
Leach sludge from CBNC, THPAL, etc.
Industrial waste (Japan)
Recycling
Other

Raw material and energy inputs in business activities P.71
Water resource input, water discharge, and water consumption in business activities

P.71

Figures are rounded to the nearest whole number, so totals may not match
1. Does not include materials recycled within plants
2. Fuel, heat, electricity, etc. consumed in business activities in Japan and overseas are covered, and electricity consumption is converted into joules at 3.6 GJ per 1,000 kWh
3. Purchased steam includes purchased cold water
4. SMM uses the WWF Water Risk Filter to identify and assess regions with high water stress and has determined there are no areas of high water stress at SMM Group’s productionsites
5. Water consumption is estimated by subtracting the total water discharge from the total water withdrawal for each business site. There was no water storage which would have asignificant water-related impact

58

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

Release and transfer of chemical substances in business activities

6 kt
6,840 kt
99 kt
23 kt
1 kt

P.72

1. The percentage of products from recycled input increased because chromite was added to products in FY2021
2. Both Japan and overseas figures are calculated based on the GHG Protocol, and emission factors are based on the Japanese law “Act on Promotion of Global WarmingCountermeasures.”
3. GHG emissions factors for electric power purchased in Japan are the adjusted emissions factors of electric suppliers
For China and Taiwan, the latest emission factors published by the governments of those countries are used
For Vietnam, the default emission factor compiled by The Climate Registry (TCR) (2011 national emission factors published by the International Energy Agency (IEA) in 2013) is used
4. Discharges into rivers flowing into enclosed seas are included as “discharges into seas”
5. Waste includes items of value
6. Industrial waste treatment is commissioned to Group companies and industrial waste is recycled for use as raw material. Accordingly, waste figures include some waste which was
effectively not discharged outside the Group, in particular (hazardous) sludge
7. Total transfers to sewerage and off-site transfers

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

59

Environment

 Environment

Significant Environmental Accidents / Biodiversity

Emissions into the Atmosphere*

GRI 305-7

SOx emissions in FY2022 remained flat, decreasing by about 1% year on year. NOx emissions increased by about 12% year on year.
Due to the effect of fuel specifications, THPAL’s emissions increased by about 240 tons. Soot and dust emissions increased by about
18% year on year.
* Each emissions figure was calculated based on the measurement of flue gas

(t)
2,000

1,733 1,739 1,715

120
1,500

1,444

1,423
1,271

95
80

80

84
68

1,000

500

500

60

 Release and Transfer of PRTR Substances

40

(t)
3,000

20

2019 2020 2021 2022

 Toyo Smelter & Refinery    Niihama Nickel Refinery Other0(FY) 20182019 2020 2021 2022

0(FY) 20182019 2020 2021 2022

1. COD (Chemical Oxygen Demand): Measured for discharge into seas, including emissions into rivers flowing into enclosed seas
2. BOD (Biochemical Oxygen Demand): Measured for discharge into rivers, excluding emissions flowing into enclosed seas
3. Diversion water: Water that flows into the site as an input and flows out of the site as an output without being used for production purposes

55

 Seawater Withdrawal(million m3)(million m3)
200

40

48

49

35.7

36.9

35.2

36.0

37.7

1,957

2018

2019

2020

2021

 Breakdown of Releases into the
Atmosphere
(t)
10

165
143

1,500

6

0
(FY) 2018

145

1,000

4

0.7

1
2022

 Breakdown of Discharge into Water

40
30

2019 2020 2021 2022

1.7

91

18

0.8

0.3

10

7.2
0.9

0
Toluene

0
Other

54

20

2.2

2

500

 Toyo Smelter & Refinery    Niihama Nickel Refinery    Shisaka Smelting Co., Ltd.    Harima Refinery    Hyuga Smelting Co., Ltd.    CBNC    THPAL All mining operations    All other operations

Sustainability Report 2023

0.9
1
2021

(t)
70

Dichloromethane2019 2020 2021 2022

1.7
1
2020

159

Cadmium and its
compounds

0(FY) 2018

0.7
3
2019

8

Lead compounds

2019 2020 2021 2022

75

67

64

2,000

50

10

74

60

75

16
12

79

 Landfill (SMM premises)    Soil    Water    Atmosphere Breakdown of Transfers

0

SUMITOMO METAL MINING CO., LTD.

0.7
3
2018

0
(FY)

2022

 Transfer    Release

Nickel compounds

0(FY) 2018

77

40

20

Manganese and its
compounds

10

60

1,822

500

0
(FY)

84
8

78
9

50

157
150

2,120

1,000

20

15

85
9

60

2,200

100
30

13

15

2,438

30

BOD
15

97

19

3.1

40

20

100

80

Other

49

50

100

2,035
78

2,670

(t)
2,500

 Freshwater Withdrawal
50

COD
56

1,907
85

2,000

1,500

The COD1 pollutant load in FY2022 increased by about 3% year on year. The BOD2 pollutant load increased by about 35% year on
year due to a small rise in the analysis values at Hishikari Mine as well as an increase in discharge. Many SMM Group business sites
face onto Japan’s Seto Inland Sea and are subject to controls on the total amounts of COD, nitrogen, and phosphorous emissions
under the Act on Special Measures Concerning Conservation of the Environment of the Seto Inland Sea. In addition, we adhere to
the discharge standards of the Water Pollution Prevention Act and have not had any violations in this area.
The volume of freshwater usage increased by about 5% year on year to about 37.7 million m3. In this calculation, diversion water,3which is unrelated to production, is excluded from withdrawal and discharge at mines. The volume of seawater usage increased byabout 10% year on year. This was attributable to an increase in production volumes at the Toyo Smelter & Refinery.

60

2,217
97

 Shisaka Smelting Co., Ltd.    Harima Refinery    Hyuga Smelting Co., Ltd.    CBNC    THPAL  GRI 303-2/303-3/303-4

(t)
70

2,522
84

2,500

Discharge into Water COD and BOD Pollutant Loads

(t)
120

2,770
100

Nickel compounds

0(FY) 2018

 Breakdown of Releases, by Destination

Hydrogen fluoride
and its
water-soluble salts

1,000

1. Industrial waste treatment is commissioned to Group companies and industrial waste is recycled for use as raw material. Accordingly, chemical substances transferred off-siteinclude some substances which were effectively not discharged outside the Group, such as nickel compounds as well as cobalt and cobalt compounds
2. Iron clinker: The residue remaining during the processing of electric arc furnace dust after recovering zinc. The residue able to be sold is called “iron contained pellet,” and the residue to be disposed of is called “iron clinker”

105
100

1,352

Boron compounds

1,376

1,512

Methyl naphthalene

1,608
1,500

(t)
140

1.9

0.7
Other

(t)
2,000

 Soot and Dust Emissions

Zinc compounds(water-soluble) NOx Emissions

GRI 305-6

An overview of releases and transfers of chemical substances based on Japan’s Pollutant Release and Transfer Register (PRTR) system in FY2022 is as follows. The number of data-submitting sites in the SMM Group was 26 (24 in FY2021). The Group had 40 (42 in
FY2021) substances requiring registration.
The total released and transferred amount (releases + transfers) came to 2,522 t, an increase of about 24% year on year, mainly
due to an increase in transfers. The increase in transfers was due to an increase in the volume of iron clinker2 to undergo final disposal as industrial waste after being generated as a by-product at Shisaka Smelting Co., Ltd. and a reduction in the volume of manganese transferred off-site.
The amount released into the atmosphere decreased by about 7%. There were no releases of ozone-depleting substances.
Discharges into water increased by about 12% year on year.

Nickel compounds

 SOx Emissions

Release Control for Chemical Substances1

 FY2018    FY2019    FY2020    FY2021    FY2022
Displayed PRTR substances are those with the highest amounts in FY2022

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

61

Environment

 Environment

Significant Environmental Accidents / Biodiversity

Trends in Final Disposal Amount of Industrial and Mining Waste in Japan
The SMM Group has long been making efforts to reduce
industrial waste in Japan and the amount of wastewatersludge (mining waste) that undergoes final disposal from themine-affiliated Toyo Smelter & Refinery. The total final disposal
amount in FY2022 was 74 kt, which was an increase of about
14 kt from FY2021. The main factor behind this increase wasan increase in the final disposal volume of iron clinker at
Shisaka Smelting Co., Ltd.
Final disposal amount of industrial and mining waste in JapanGRI 306-5

(kt)
100

80

74
1

71
1
60

52
1

85
40

60
1

51

0
(FY)

2018

2019

2020

2021

2022

 Breakdown of Industrial Waste (in Japan) by Type of Waste

(kt)

6.9

17.4

24.3

0.3

1.0

1.3

0.0

0.3

0.3

Landfill

70.7

6,847.0

6,917.6

Volume reduction,
etc.

1.4

0.9

2.3

Total

79.3

6,866.7

6,945.9

Recycling
Incineration(with heat recovery)4Treatment
method3

Incineration(without heat recovery)4(kt)

Landfill on company premises /Contracted disposal

Landfill on company
premises

6,846

Contracted disposal

100

Glass, concrete, ceramic waste
2.1%
Scrap metal 2.5%
Waste plastic
Hazardous sludge

Details(%)

Recycling

773.6

46.1

1,103.9

40.6

Recycling (Heat recovery)

325.4

19.4

613.2

22.6

Unused262.0

Incineration

263.4
34.6

318.2
1,679.1

Other waste

7.2%

2.8%
6.2%

100.0

Environmental education activities

Business site
general managers• Education of newly-appointed businesssite general managers• Periodically send out information• Promote understanding of the importance of the relationship between corporations and the environmentand raise self-awareness and environmental awareness as the business site general manager• Provide information about revisions of laws and important precedents by a periodical e-mail magazine

Purpose, contents

Managers andsupervisors• Environmental e-learning (Environmental
Laws, Basic)• Understand the spirit and idea of Japan’s laws, and understand Japan’s mandatory and notification
proceduresInternal auditors• EMS Internal Auditor Training Course, standard update course• Training of internal auditors for EMS with qualifications conforming to ISO 14001 (2015) and updating
holders of old qualifications to the 2015 version

Managers• Education about environmental
preservation• Provide information about the SMM Group’s environmental preservation initiatives and raise
self-awareness

Environment
managers• Conference for environment managers• Periodic education about the Chemical
Substances Control Law• Improve knowledge of Japan’s environmental laws and regulations, enhance environmental management
capabilities, raise self-awareness• Check the outline of Act on the Regulation of Manufacture and Evaluation of Chemical Substances andinformation on revisions, prevent omissions of notification, and raise self-awareness

Sales
representatives• Explanatory meeting: overseas chemical
substance regulations• Impart knowledge to sales representatives about overseas chemical substance regulations and raise theirself-awarenessNew and midcareer hires• Education about environmental preservation for mid-career hires• Education about environmental preservation for new employees• Impart knowledge about the SMM Group’s environmental preservation initiatives and raise self-awareness

99 kt

Slag

79.2%

The SMM Group has established two e-learning courses onenvironmental laws with the objective of raising levels ofcompliance. Employees, especially managers and supervisors,
involved with environmental laws and regulations, and internal environmental auditors, are taking part in those courses.
The e-learning course on Japan’s main environmental laws
covers 10 laws that are deeply related to the businesses of
the SMM Group and provides explanations of mandatory
standards and notification procedures. As failing to comply
with these requirements constitutes a violation of the law,
employees must be certain to keep them in mind when conducting business. Given not only compliance with regulations
and obligations, but also the voluntary risk management andinformation disclosure demanded of businesses today, theGroup offers an e-learning course called Environmental Laws,
Basic that serves as a stepping stone for properly conducting
business. This course covers 12 laws, including the Basic
Environment Act and the Basic Act on Biodiversity.

 Laws Covered in the Environmental e-learning Courses
Name of law
Basic Environment Act

Environmental
Laws

Environmental
Laws, Basic









Basic Act on Biodiversity
Basic Act on Establishing a Sound
Material-Cycle Society
Act on the Promotion of Environmental
Conservation Activities throughEnvironmental Education
Law Concerning the Promotion ofBusiness Activities with Environmental
Consideration
Act on Promotion of Global WarmingCountermeasures
Act on the Rational Use of Energy













Air Pollution Control Act(including the content of the Act on
Pollution Prevention
Systems in Specified
Factories)

Water Pollution Prevention Act

Soil Contamination Countermeasures Act



PRTR LawPCB Special Measures Law













Act on Promoting Green Procurement

Sustainability Report 2023

100.0

Targeted employees

Poisonous and Deleterious Substances
Control Act
Waste Management and Public Cleansing
Act

SUMITOMO METAL MINING CO., LTD.

2,717.0

Total waste

Industrial waste treatment is commissioned to Group companies and industrial waste is recycled for use as raw material. Accordingly, waste figures include some waste which was
effectively not discharged outside the Group, in particular (hazardous) sludge
1. In general, this depends upon definitions of the regulations in the other releasing countries concerned. Since Japan does not have such laws or regulations, SMM applies the following definition: “Specially controlled industrial waste and waste delivered to controlled landfill sites (excluding designated inert waste (5 categories of inert waste) that should havebeen delivered to landfill sites for inert industrial waste, but was disposed of at controlled landfill sites due to the distance limitation)”
2. Waste other than hazardous waste
3. Treatment methods outside of the Company were identified based on the written agreement with the disposal company and the manifest
4. Since FY2021 incineration has been classified into two categories: with heat recovery and without heat recovery, and the hazardous category of incineration (without heat recovery)is 0.01 kt. To unify digits, it is shown as zero

62

36.8
736.4

Environmental Education

GRI 306-3/306-4/306-5

Total

Amount(t)

Education on the Environment

59

1. Includes waste destined for landfills and incineration without heat recovery
2. Mining waste in the form of wastewater sludge generated by mine-affiliated Toyo
Smelter & Refinery that is landfilled within the business site

Nonhazardous

Details(%)

Total waste

 Industrial waste    Mining waste2

Waste by Type and Treatment Method (FY2022)

Group

Amount(t)(Without heat recovery)

74

70

Directly controlled
business sites

Landfill

20

Hazardous

GRI 306-3/306-4/306-5

86
1

P.72

 Waste by Treatment Method (hazardous1/non-hazardous2)

Emissions of Waste Plastic (FY2022)
Recycling of material and recycling, etc. (heat recovery)accounted for about 65% at directly controlled business sites
and about 63% for the SMM Group as a whole. We will work
to further reduce emissions and promote recycling.

 Final Disposal Amount1 ofIndustrial and Mining Waste in JapanSUMITOMO METAL MINING CO., LTD.



Sustainability Report 2023

63

Environment

 Environment

Significant Environmental Accidents / Biodiversity

Information Required to be Disclosed by GISTM
The information required to be disclosed by GISTM requirement 15.1 for two of the Group’s tailings facilities, CBNC TSF3 and THPAL TSF1, which are classified as “very high” or “extreme” in terms of expected damage, is presented below.
 Details of tailings facilities operated with “Extreme” or “Very high” potential consequences
Name of tailings facility

Requirement
15.1B

CBNC TSF3

THPAL TSF1

Operation

Coral Bay Nickel Corporation

Country(CBNC)

Taganito HPAL Nickel Corporation

Philippines

Philippines

1)

A description of the tailings
facility

Coral Bay Nickel Corporation (CBNC), hydrometallurgical processing plant in Rio Tuba at the southernmost tip of Palawan
Philippines, commenced commercial operation to produce 10,000 tons of nickel per year from April 2005, and expand second processing line for its annual output to 20,000 tons of nickel in June 2009. Through High-Pressure Acid Leach (HPAL),
nickel and cobalt in low-grade nickel laterite ore are leached using sulfuric acid and recovered as sulfides. After neutralized,
tailings which are hematite and gypsum as predominant are discharged Tailings Storage Facility (TSF).
CBNC TSF3 is about 1.5km north-east of the plant. The embankment of CBNC TSF3, which has one enclosed embankmenton three sides excluding the western side is Rock-fill Dam with 32.0m of the maximum height, 42.0m a.s.l. of the crest. It isbeing built to full height in one stage with no further raises. The construction of the embankment commenced in October
2021, and is scheduled to be completed in February 2027. The cofferdam which has same structure as the embankment
forms the south cell and the north cell in CBNC TSF3. The total impounding capacity is 16.5Mm3. Tailings discharged into
the south cell commenced from January 2023.

Taganito HPAL Nickel Corporation (THPAL), hydrometallurgical processing plant located at Barangay Taganito, Claver,
Surigao del Norte, commenced commercial operation to produce 30,000 tons of nickel per year from June 2013. ThroughHigh-Pressure Acid Leach (HPAL) same as CBNC, nickel and cobalt in low-grade nickel laterite ore are leached using sulfuric
acid and recovered as sulfides. After neutralized, tailings which are hematite and gypsum as predominant are discharged
Tailings Storage Facility (TSF).
THPAL TSF1 is about 3.0km south-east of the plant. The embankment of THPAL TSF1 is Rock-fill Dam with 89.0m of the
maximum height, 89.0m a.s.l. of the crest, and is designed in four stages raised by Downstream method. The 1st stage
embankment was commenced to construct from April 2010, and the 3rd stage embankment, 75.0m a.s.l. of the crest, wascompleted to build in December 2022. The 4th stage of embankment will be commenced to build from April 2024 and becompleted in June 2030. The total impounding capacity is 96.0Mm3.
Tailings discharged into THPAL TSF1 started from June 2013. The Hillside Channel is along the entire perimeter of THPALTSF1 to prevent rain runoff from entering inside its impoundment.

2)

The Consequence
Classiﬁcation

The Consequence Classiﬁcation is rated as “VERY HIGH”.
The number of people potentially at risk from dam breach analysis is assumed to be over 100 and up to 1,000, as there areabout 200 residences in the sphere of influence. There are no hospitals or schools in the impacted area. However, there is anational highway that crosses the flooded area, which may affect daily life and distribution.

The Consequence Classiﬁcation is rated as “EXTREME”.
The number of people at risk from dam breach analysis is estimated to be over 1,000, as there are over 300 residences
within the sphere of influence. There is one clinic in the impact zone, but no school. However, as there is a national highway that crosses the flood zone, it may affect daily life and distribution relations.

3)

A summary of risk assessment ﬁndings relevant to thetailings facility

Based on ANCOLD guidelines, CBNC TSF3 was designed to ensure stability by performing stability analysis using the predicted Maximum Credible Earthquake (The 10,000 year seismic event) for the dam classification (EXTREME). The results ofthis analysis and the design were verified by third-party verification. The flood discharge was also designed to be able tocarry the “Maximum Probable Precipitation” (PMP) and “Probable Maximum Flood” (PMF), which were also validated by athird-party verification.

Based on ANCOLD guidelines, THPAL TSF1 was designed to ensure stability by performing stability analysis using the predicted Maximum Credible Earthquake (The 10,000 year seismic event) for the dam classification (EXTREME). The results ofthis analysis and the design were verified by third-party verification. The flood discharge was also designed to be able tocarry the “Maximum Probable Precipitation” (PMP) and “Probable Maximum Flood” (PMF), which were also validated by athird-party verification.

4)

A summary of impact assessments and of human exposure and vulnerability totailings facility credible flow
failure scenarios

According to the results of the breach analysis, which assumes a forced dam breach, tailings will be released into the riverbed on the southeast side and flow downstream from the National Highway to the downstream riverbed area. As a result,it was assessed that approximately 200 residences along the national highway and around the riverbed area would be
affected by flooding.

According to the results of the breach analysis, which assumes a forced dam breach, tailings will be released into the
Hayanggabon River, and it was assessed that more than 300 residences would be affected by flooding. Note that 41
households residing directly downstream of the dam were relocated prior to the construction of the dam.

5)

A description of the design
for all phases of the tailings
facility lifecycle

Started inpoundment

Acvtive
Operating on South Cell
Constracting on North Cell
Mar-2023

Type
Raising method
Dam Hight
Dam Elevation
Downstream slope
Upstream slope
Length of Embankment

Rockfill Dam
N/A
32 m
42 m
1:2.0
1:1.8
2,350 mStatusCatchment area
Impondment area
Impoundment Volume
Flood Criteria-Annual Exceedance Probability
Seismic Criteria-Annual Exceedance Probability
Operational Basis Earthquake(OBE)
Maximum Credible Earthquake(MCE)

107 ha75 ha
16.5 Mm3
PMF (745 mm/day)
1/10,000
0.15 g0.25 gStatusStarted inpoundment
Type
Raising method
Dam Hight
Dam Elevation 1st stage
2nd stage
3rd stage
4th stage
Downstream slope
Upstream slope
Length of Embankment

6)64(THPAL)A summary of material ﬁndings of annual performance
reviews and DSR (Dam
Safety Review), including
implementation of mitigation measures to reduce risk
to ALARP

SUMITOMO METAL MINING CO., LTD.

CBNC TSF3: The following suggestions were received from the EOR.
• With regard to the spillway, periodic inspection and cleaning should be performed to prevent blockage and reductionof flow capacity due to accumulation of soil and rocks.

[Action]
Daily inspections of the Spillway and surrounding area are conducted once a day. If accumulated debris is found in theSpillway through visual inspection, they are immediately removed. The inspection of the surrounding area is conducted
to find if there are sources of blockage. Sources like trees, hanging rocks, other materials that may fall and cause blockage
are either removed or reinforced.

Sustainability Report 2023

ActiveOperating in 3rd Stage
Designing the 4th Stage(Final Stage)Jun-2013
Rockfill Dam
Downstream
89 m (4th Stage)
38 m
60 m
75 m
89 m
1:3.0
1:3.0
1,217 m (3rd Stage)
1,476 m (4th Stage)

Catchment area
Impondment area
Impoundment Volume
Flood Criteria-Annual Exceedance Probability
Seismic Criteria-Annual Exceedance Probability
Operational Basis Earthquake(OBE)
Maximum Credible Earthquake(MCE)

940 ha267 ha (4th Stage)
52.7 Mm3 (up to 3rd Stage)
96.4 Mm3 (up to 4th Stage)
PMF (1,549 mm/day)
1/10,000
0.28 g (3rd Stage)
0.41 g (3rd Stage)

The following suggestions were received from the EOR.
• Upstream of THPAL TSF1, the topographic alteration due to mining is expected to increase the runoff coefficient (Larger
PMF value), so the capacity of the flood discharge should be checked.
• In 2017, the Philippine Institute of Volcanology and Seismology (PHIVOLCS) updated the Peak Ground Acceleration(PGA) in the Philippines to consider new findings, and since the design seismic coefficient THPAL have increased, thedesign seismic coefficient and dam stability need to be reconfirmed.
[Action]Verification of the spillway’s flow capacity and the stability of the dam in relation to the design seismic coefficient will beverified during the detailed design of the 4th Stage and reflected in the design.

SUMITOMO METAL MINING CO., LTD.

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65

Environment

 Environment

Significant Environmental Accidents / Biodiversity

7)

A summary of material ﬁndings of the environmental
and social monitoring programme including implementation of mitigation
measures

A monitoring system for CBNC TSF3 embankment was designed in accordance with ICOLD and ANCOLD guidelines.
Monitoring measured parameters are 1) pore water pressure within the core of the embankment, 2) pore water pressure
within the foundation, 3) groundwater levels and quality seeping through the foundation, 4) subsurface lateral displacement and settlement, and 5) crest settlements.
Effluent from CBNC TSF3 is sampled daily to monitor water quality to ensure that it meets the water quality standards set
forth by the Department of Environment and Natural Resources (DENR) of the Philippines.

A monitoring system for THPAL TSF1 embankment was designed in accordance with ICOLD and ANCOLD guidelines.
Monitoring measured parameters are 1) pore water pressure within the core of the embankment, 2) pore water pressure
within the foundation, 3) groundwater levels and quality seeping through the foundation, 4) subsurface lateral displacement and settlement, and 5) crest settlements.
Effluent from THPAL TSF1 is sampled daily to monitor water quality to ensure that it meets the water quality standards set
forth by the Department of Environment and Natural Resources (DENR) of the Philippines.

8)

A summary version of thetailings facility EPRP
(Emergency Preparedness
and Response Plan) for facilities that have a credible failure mode(s) that could leadto a flow failure event

Emergency Preparedness and Response Plan (EPRP) was established and is conducted according to its contents.

Emergency Preparedness and Response Plan (EPRP) was established and is conducted according to its contents.

1. Response to unusual operating condition
To detect unusual conditions through the monitoring and response different actions taken according to the procedure.

1. Response to unusual operating condition
To detect unusual conditions through the monitoring and response different actions taken according to the procedure.

2. Emergency Response Plana) If an indication of an impending dam break is spotted or observed, the discoverer should report to the CBNCManager and the Supervisor of the Environment Management and Quality Control Section (EMQCS). The Supervisor
must proceed to the area immediately and identify an incident.
b) For major incident, depending on the situation, make following instruction;• Inform the employees and officials of the downstream of the dam to take the emergency evacuation, conduct
head count, and conduct search, and rescue under the supervision of the Disaster and Risk Management
Committee (DRCM) if someone is missing.
• CBNC General Affairs Dept. Manager and Community Relations Officers should immediately contact Local
Government Units to inform them of the incident. Community Relations Officers should guide the community todesignated evacuation sites around their area which is away from the flood routes.
• Stop operation to reduce slurry volume discharge to the tailings dam and operate all pumps to reduce water level.
• The Emergency Response Team (ERT) provide need equipment to be use in response to incident, and request contractors for additional equipment and/or manpower for response.
c) Deploy a command center which is plant Manager, ERT and DRCM. The command center will be the disaster management at the sight where the emergency is unfolding can be best and safety overseen and is to evaluate theactual situation and that the necessary and appropriate action can be implemented or instructed.
d) If every personnel and resident is evacuated and accounted, patrols at a safe distance are conducted to check andprovide assistance and information to areas that have been affected.
e) The situation should be reported to Government Entities within 24 hours.
f) P rovide assistance to rehabilitation and mitigation of impact and to the Disaster Management and Rehabilitation
process.

2. Emergency Response Plana) If an indication of an impending dam break is spotted or observed, the discoverer should report to the Manager andthe Supervisor of Mine Environment Protection and Enhancement Office (MEPEO). The Supervisor must proceed tothe area immediately and identify an incident.
b) For major incident, depending on the situation, make following instruction;• Inform the employees and officials of the downstream of the dam to take the emergency evacuation, conduct
head count, and conduct search, and rescue if someone is missing.
• General Affairs Dept. Manager and Community Relations Officers should immediately contact Local Government
Units to inform them of the incident. Community Relations Officers should guide the community to designatedevacuation sites around their area which is away from the flood routes.
• Stop operation to reduce slurry volume discharge to the tailings dam and operate all pumps to reduce water level.
• The Emergency Response Team provide need equipment to be use in response to incident, and request contractors for additional equipment and/or manpower for response.
• Cutoff national highway at designated point due to the possible flash floodingc) Deploy a command center at THPAL plant site and satellite centers at Taganito side and Hayanggabon side. The command center will be the disaster management at the sight where the emergency is unfolding can be best and safety
overseen and is to evaluate the actual situation and that the necessary and appropriate action can be implemented
or instructed. The satellite center will also serve as public communication sites for grievances, information dissemination, etc.
d) If every personnel and resident is evacuated and accounted, patrols at a safe distance are conducted to check andprovide assistance and information to areas that have been affected.
e) The situation should be reported to Government Entities within 24 hours.
f ) Provide assistance to rehabilitation and mitigation of impact and to the Disaster Management and Rehabilitation
process.

3. Information, Education and Communication
EMQCS shall coordinate with the Safety Section to plan the Dam break emergency action plan. Two sections shall disseminate this information in hand to all CBNC personnel. The Safety Section should ensure that the necessary materials for the
emergency action plan are adequate and maintained. The Safety Section together with the Community Relations Section
should ensure that the affected communities and their Local Government Unit (LGU) are well informed and educatedabout this scenario.
4. Emergency Drill
Dam break emergency drill is conducted once a year.

3. Information, Education and Communication
MEPEO shall coordinate with the Safety Section to plan the Dam break emergency action plan. Two sections shall disseminate this information in hand to all CBNC personnel. The Safety Section should ensure that the necessary materials for the
emergency action plan are adequate and maintained. The Safety Section together with the Community Relations Section
should ensure that the affected communities and their Local Government Unit (LGU) are well informed and educatedabout this scenario.
4. Emergency Drill
Dam break emergency drill is conducted twice a year.

9)66

Dates of most recent andnext independent reviews

A third party verified the dam stability and the spillway capability in July 2023. The design was identified to meet the
Flood Design Criteria and the Seismic Design Criteria of GISTM.

A third party assessed the dam stability in June 2020 and the spillway capability in July 2023. The design was identified tomeet the Flood Design Criteria and the Seismic Design Criteria of GISTM.

Multipartite Monitoring Team (MMT) which composed representatives from governmental agencies, local governments(municipalities and barangays), religious sectors, non-government organization and mining companies, etc., validate
activities and monitoring data of Environmental Protection and Enhancement Program on every quarter. Next review willconduct in November 2023.

Multipartite Monitoring Team (MMT) which composed representatives from governmental agencies, local governments(municipalities and barangays), religious sectors, non-government organization and mining companies, etc., validate
activities and monitoring data of Environmental Protection and Enhancement Program on every quarter. Next review willconduct in November 2023.

10)

Annual conﬁrmation that the
Operator has adequateﬁnancial capacity to coverestimated costs of planned
closure, early closure, reclamation, and post-closure of
the tailings facility and its
appurtenant structures

Closure plan was established as Final Mine Rehabilitation and Decommissioning Plan (FMRDP) and summited to
Department of Environment and Natural Resources (DENR) of Philippine, and annual deposits is made to the FMRDP
Fund.

Closure plan was established as Final Mine Rehabilitation and Decommissioning Plan (FMRDP) and summited to
Department of Environment and Natural Resources (DENR) of Philippine, and annual deposits is made to the FMRDP
Fund.

Requirement
15.1C

Provide local authorities andemergency services with
sufﬁcient information
derived from the breachanalysis to enable effective
disaster management
planning

Information, Education and Communication (IEC) activities with communities were held regularly for stakeholders andpublic audiences.

Information, Education, and Communication (IEC) activities with communities were held regularly for stakeholders andpublic audiences.

Quarterly, the construction status of CBNC TSF3 and environmental monitoring results were explained to the members of
MMT.

Quarterly, the construction status of THPAL TSF1 and environmental monitoring results were explained to the members of
MMT.

SUMITOMO METAL MINING CO., LTD.

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67

Environment

 Environment

Significant Environmental Accidents / Biodiversity

The following five requirements are not in conformance with both CBNC TSF3 and THPAL TSF1 and will be addressed within one
year. Except for them, all requirements were confirmed to be in conformity.
 The status of conformance for GISTM and the summary to address any gaps for CBNC TSF3 and THPAL TSF1
Requirement

Criteria

Progress and Further work

Term*

1.1

Conduct the human rights due
diligence

Operations and activities are conducted based on the SMM Group Human Rights
Policy in accordance with UNGP and are compiled to the Philippine Human
Rights Laws and Regulations, but the human rights due diligence process regarding the tailings dam facilities has not been implemented.
The human rights due diligence will be conducted through the process in accordance with the SMM Group Human Rights Policy, which was revised on June 1,
2022.

Within1 year

5.7

For an existing tailings facility, seek
to identify and implement additional
reasonable steps that may be taken
to further reduce potential consequences to people and theenvironment.

On design and construction phase, the design was adopted to minimize risks topeople and the environment and the TSF was developed robust design. While, inthe operation phase, additional reasonable steps to farther reduce potential consequences have not been identified.
For an existing tailings facility, the assessment and the frequency of its procedure
based on the Dam Safety Review (DSF) should be involved to TailingManagement System (TMS).

Within1 year6.5

Establish the Change Management
SystemThrough the TSF lifecycle, processes for identifying changes and processes forevaluation, review and approval have been done. A Change Management System
has not been introduced including documentation as Deviance Accountability
Report.
A Change Management System will be established into the Tailings Management
System.

Within1 year

8.1

Publish the policy on or commitment to the safe management oftailings facilities

Sumitomo Metal Mining Group’s Sustainability Policy was published, and its activity includes the safe management of tailings facilities. While the policy does notmeet the Requirement sufficiently.
The policy for the safe management of tailings facilities will be revised andpublished.

Within1 year13.2

Assess the capability of identified
organizations to address emergency
responses and improve a collaborative plan if gaps are identified.

Public sector agencies and local authorities and institutions that would participate in any emergency response have been identified, but the capacity of identified organizations has not been assessed.
The assessment of the capacity to be supported by identified organizations inany emergency response will be conducted, and a collaborative response plan
will be developed.

Within1 year* Term fixed on August 5, 2023

68

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Environment

 Environment

Environmental Data

Effective Use of Non-Ferrous Metal Resources

Significant Environmental Accidents / Biodiversity

Percentage of Recycled Input Raw Materials Used
Scope
Recycled raw materials and percentage used

SMM Group

GRI 301-2

Raw Material and Energy Inputs in Business Activities

Unit

FY2018FY2019FY2020

FY2021

FY2022

Raw Material Input

kt
(%)

249
(2.22)

227(2.08)

229(2.13)

239(2.38)

236(2.21)Scope

GRI 301-1/301-2
Unit

FY2018FY2019FY2020

FY2021

FY2022kt

13,334

13,116

12,777

11,936

12,84010,97910,646

10,524

9,808

10,424

Recycled materials*

249

227

229

239

236

Materials

2,106

2,243

2,024

1,889

2,180

Unit

FY2018FY2019FY2020

FY2021

FY2022

TJ

32,58632,052

31,72830,651

22,762

28

19

12

74

66

32,55832,03331,71630,577

22,696

Raw Materials (total amount)

SMM Group

Raw materials

Climate Change

Figures are rounded to the nearest whole number, so totals may not match* Does not include materials recycled within plants

Greenhouse Gas (GHG) EmissionsGRI 305-1/305-2
Scope

Unit

FY2018FY2019FY2020

FY2021

FY2022

kt-CO2e

2,809

2,807

2,760

2,647

2,823

Scope 1 (direct emissions)

1,839

1,943

1,877

1,786

1,965

Scope 2 (indirect emissions)

971

865

882

861

858

Emissions other thanCO2 included in
Scope 1*

—

—

—

—

1,847

GHG Emissions (total)

SMM Group

Sulfur hexafluoride (SF6)
Hydrofluorocarbons (HFCs)

—

—

—

—

630

Methane (CH4)

—

—

—

—

149

t-CO2e

—

—

—

—

0

Nitrogen trifluoride (NF3)

—

—

—

—

0

Perfluorocarbons (PFCs)

—

—

—

—

0

Nitrous oxide (N2O)

Figures are rounded to the nearest whole number, so totals may not match
Both Japan and overseas figures are calculated based on the GHG Protocol, and emission factors are based on the Japanese law “Act on Promotion of Global WarmingCountermeasures.”
GHG emissions factors for electric power purchased in Japan are the adjusted emissions factors of electric suppliers
For China and Taiwan, the latest emission factors published by the governments of those countries are used
For Vietnam, the default emission factor compiled by The Climate Registry (TCR) (2011 national emission factors published by the International Energy Agency (IEA) in 2013) is used
* Disclosure from FY2022 based on the GHG Protocol

Energy and GHG Emissions Intensity Indices*
Scope
Energy intensity index
GHG emissions intensity index

SMM Group

GRI 302-3/305-4
Unit—

FY2018FY2019FY2020

FY2021

FY2022

0.66

0.70

0.65

0.65

0.62

0.65

0.67

0.63

0.64

0.60

Energy Input

GRI 302-1
Scope

Energy Input (calorific value)

SMM Group

Renewable energy
Non-renewable energy sources

From FY2022 onward, fuel, heat, electricity, etc. consumed in business activities in Japan and overseas are covered, and electricity consumption is converted into joules at 3.6 GJ per
1,000 kwh

Water Resource Input, Water Discharge, and Water Consumption in Business Activities
Water Resource Input

GRI 303-3
Scope

Unit

FY2018FY2019FY2020

FY2021

FY2022

ML

192,357

180,348

200,305

181,271

197,186

13,902

14,085

13,717

13,954

15,321

Rainwater

79

36

68

53

44

Groundwater

6,843

8,059

6,657

7,108

7,586

Industrial water (water from another organization)

14,444

14,293

14,33914,437

14,346

404

407

393

417

391

156,686

143,468

165,132

145,301

159,500

Water Withdrawal*
Freshwater
withdrawal

SMM Group

Surface water (rivers)

Tap water (water from another organization)
Seawater withdrawal

Figures are rounded to the nearest whole number, so totals may not match* SMM uses the World Wide Fund for Nature (WWF) Water Risk Filter to determine and evaluate regions with high water stress. As a result of this, there are no areas of high water stressat SMM Group’s production sites* Energy and GHG emissions intensity indices: The amount of energy and GHG emitted during the production of 1 ton of product, assuming the base year FY1990 value to be 1

Water Discharge

GRI 303-4
Scope

Unit

FY2018FY2019FY2020

FY2021

FY2022

ML

183,977

174,392

199,057

176,781

196,736

Seas*

183,060

173,456

198,051

175,753

195,792

Rivers

867

890

965

974

879

Sewerage, etc.

50

47

42

55

65

Unit

FY2018FY2019FY2020

FY2021

FY2022

ML

8,615

6,195

4,281

4,917

3,552

Water discharge (total)

SMM Group

Figures are rounded to the nearest whole number, so totals may not match* Discharges into rivers flowing into enclosed seas are included in “Seas”

Water Consumption

GRI 303-5
Scope

Total water consumption from all areas

SMM Group

Water consumption is estimated by subtracting the total water discharge from the total water withdrawal for each business site

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Environment

 Environment

Environmental Data

Release and Transfer of Chemical Substances in Business Activities
Scope
Releases into theatmosphere

FY2019FY2020

FY2021

FY2022

3,136

2,742

3,257

3,175

3,295

SOx

1,608

1,376

1,733

1,739

1,715

NOx

1,423

1,271

1,444

1,352

1,512

SMM Groupt

Soot and dust

105

Discharge into Water (total)
Discharge into
water

95

80

84

68

71

68

64

59

65

COD1 (chemical oxygen demand)

56

55

49

48

49

BOD2 (biochemical oxygen demand

15

13

15

12

16

2,770

2,217

1,907

2,035

2,522

2,670

2,120

1,822

1,958

2,438

Release (total)

100

97

85

77

84

Landfill (SMM premises)

3.2

2.7

0.8

0.8

0.8

SMM Group

Transfer/Release of PRTR Substances (total)

SMM GroupttTransfer
ReleaseGRI 303-4/305-7
FY2018

Releases into the Atmosphere (total)

Unit

Soil

0.7

0.7

1.7

0.9

0.7

Water

77.4

78.5

73.5

66.6

74.7

Atmosphere

19.0

15.4

8.6

8.8

8.1

Figures are rounded to the nearest whole number, so totals may not match
1. COD (chemical oxygen demand): Measured for discharge into seas, including discharge into rivers flowing into enclosed seas
2. BOD (biochemical oxygen demand): Measured for discharge into rivers, excluding discharge flowing into enclosed seas

Rehabilitated Area

GRI 2-4/G4-MM1

Scope
Amount of land developedor rehabilitated (FY2022)

SMM Group

Final Disposal Amount (total)1

FY2019FY2020

FY2021

FY2022

86

71

52

60

74

Industrial waste

84.7

70.1

50.9

59.0

73.7

Mining waste2

0.9

0.8

0.7

0.7

0.7

SMM Group

t

0

0

22

416 1

20

32

432

455 1

1

03

456

Taganito HPALC

Area of land newly
developed in
FY2022

Area of land newly
rehabilitated in
FY2022

D
Total area of landdeveloped but notrehabilitated(A+B-C)

Figures are rounded to the nearest whole number, so totals may not match
1 Historical figures were reviewed and adjustments were made to prior periods
2 In addition to the rehabilitated area within the development site mentioned above, CBNC cooperated with the Philippine government, and proceeded with the rehabilitation of anadditional 35 hectares in nearby regions outside the development site in FY2022, bringing the total certified rehabilitated area to 149 hectares (including bamboo groves) to date(Historical figures for off-site rehabilitated areas were reviewed and adjustments were made to prior periods)
3 In addition to the rehabilitated area within the development site mentioned above, THPAL cooperated with the Philippine government, and proceeded with the rehabilitation of anadditional 59 hectares in nearby regions outside the development site in FY2022, bringing the total certified rehabilitated area to 600 hectares to date

Business Activities in Areas of High Biodiversity Value*
Scope

GRI 306-5
FY2018

Coral Bay Nickel

B

GRI 304-1/G4-MM2

Currently, there are no projects in any region requiring the preparation of a management plan.

Final Disposal Amount of Industrial and Mining Waste in Japan
Unit

22
ha

Hishikari Mine

Regions and production sites

Scope

Unit

A
Total area of landdeveloped but notrehabilitated (as ofthe end of FY2021)

Unit

Seto Island Sea
SMM Group

FY202262

Shisaka Smelting Co., Ltd. (production site) operates on
Minoshima and Ienoshima islands, neighboring Setonaikai
National Park. Neighboring areas equivalent to IUCN Category 2

583

Coral Bay Nickel Corporation (production site) operates on
Palawan Island in hunting-prohibited and bird protection areas
equivalent to IUCN Category 4haPhilippines* Areas classified as protected by the International Union for Conservation of Nature (IUCN) as Category 4 or higher and adjacent areas or areas with high biodiversity value that areconsidered equivalent (SMM’s survey)
Areas classified as Category 1 are of highest priority

1 Includes waste destined for landfills and incineration without heat recovery
2 Mining waste in the form of wastewater sludge generated by mine-affiliated Toyo Smelter & Refinery that is landfilled within the business site

Environmental Preservation-Related Investments in Capital Expenditures
Scope
Investments Related to Environmental Preservation(total)

SMM Group

Unit¥ millions

Pollution prevention/
environmental preservation
Energy conservation
Percentage of environmental preservation-related
investments to capital expenditures

SMM Group%

FY2019FY2020

FY2021

FY2022

FY2023(plan)

5,385

6,071

7,718

12,18018,856

5,244

5,715

7,549

11,694

18,446

141

339

157

477

401

10.6

17.3

11.9

8.6

9.5

Figures are rounded to the nearest whole number, so totals may not match

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Business and Human Rights
Employees’ Occupational Health and
SafetyDiverse Human Resources /Development and Participation of
Human Resources
Co-Existence and Mutual Prosperity
with Local Communities

SocialRights of Indigenous Peoples
Human Rights in the Supply Chain
Engagement with Stakeholders
Research & Development
Intellectual Property
Social Data

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75

Social Social

Business and Human Rights

Approach and Policy

GRI 2-25/3-3

The business activities of the SMM Group affect the human rights of its stakeholders, particularly local residents and indigenous peoples, employees in the supply chain, and employees of the SMM Group. Further,stakeholders associated with our Group may be involved in adverse impacts to human rights.
Our Group supports the UN Guiding Principles on Business and Human Rights and, in accordance with
our Group’s human rights policy, promotes initiatives to uphold human rights, including the implementation of due diligence and the operation of grievance (remedy) mechanisms.

Promotion Structure

GRI 2-24/3-3

The Diversity Subcommittee and the Human Rights Subcommittee, which are subordinate organizations of the Sustainability
Committee overseen by the Board of Directors and chaired by the president, report regularly to the Committee on their activities
and reflect them in the Group policies and procedures to promote initiatives. We particularly focus our efforts in the three areas of
employees of the SMM Group, local residents and indigenous peoples, and employees in the supply chain, who are the stakeholders affected by the Group’s business activities.
 Promotion Structure

Sustainability Committee
President

Diversity Subcommittee
Chair:
General Manager of the Human Resources Department
Members:
Personnel in charge of each department

Collaborate
and cooperate
Check progress
on KPIs

Employees of the SMM Group.

Human Rights Due Diligence Initiatives

Our Group supports the UN Guiding Principles and conducts human rights due diligence (DD) in accordance with the OECD Due
Diligence Guidance for Responsible Business Conduct, and others.
We seek to cease, prevent, and mitigate adverse impacts on human rights as expressed in the ILO Core Labor Standards (10 conventions in five areas: effective approval of freedom of association and workers’ right to collective bargaining; prohibition of all
forms of forced labor; effective elimination of child labor; elimination of discrimination in employment and occupation; safe andhealthy working environment). As human rights risks in the business value chain, we promote initiatives with particular emphasison three areas: Employees of the SMM Group1, local residents and indigenous peoples,2 and supply chain (including employees
therein),3 which are impacted by our business activities.
1. Employees of the SMM Group

Chair:
General Manager of the Sustainability Department
Members:
Personnel in charge of each department

Local residents andindigenous peoples

Supply chain(including employees therein)

Commitment through policy

Identify and assess human rights impacts

Guiding Principle 22

Provide for or cooperate in the remediation ofadverse impacts through legitimate processes
Examples: Changes of systems, elimination of root-causes,
apologies and compensation

Guiding Principle 29

Establish grievance mechanisms

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Sustainability Report 2023

P.178

 GRI 2-23/2-24

P.78-79)• Our Group’s Approach to Respect for Human Rights
Our Group takes utmost care not to infringe on the human rights of all people, avoids causing or contributing to adverse humanrights impacts through our business activities, and works toward correcting and remedying any such situation that may arise.
Further, if a stakeholder is involved in adverse impacts on human rights, we will encourage that stakeholder not to violate humanrights and cooperate through corrective or remedial actions.

Guiding Principle 19• Human Rights Issues within the SMM GroupSMM Group’s human rights policy sets forth its commitments on fundamental human rights issues, including respect for children’s
rights and prohibition of child labor, and prohibition of discrimination, harassment, and bullying on the basis of race, religion, gender, age, sexual orientation, disability, nationality, and other factors. We are also committed to respecting human rights based oninternational norms such as the International Bill of Human Rights, the ILO Declaration on Fundamental Principles and Rights at
Work, and the Mining Principles of the International Council on Mining and Metals (ICMM),* an industry organization for which weare a member. In the unlikely event of a conflict between applicable laws and regulations and international norms on human rights
in the regions in which we operate, we seek ways to respect international norms while complying with the laws and regulations.

Prevent and mitigate adverse impacts* ICMM Business and Human Rights Initiatives Process Diagram
Guiding Principle 18

GRI 2-25/2-26

Outline of SMM Group’s human rights policy (The Sumitomo Metal Mining Group Policy on Human Rights

Check progress
on KPIs

Guiding Principle 16

P.120

https://jacer-bhr.org/en/index.html

Business sites(plants, mines, Group companies, etc.)
Collaborate
and cooperate

P.110, P.116   3. Supply chain (including employees therein)

SMM has joined the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER)1 established in 2022 as afounding member (regular member). JaCER is an organization that aims to support and promote the redress of grievances of member companies from a professional standpoint by providing a non-judicial Engagement and Remedy Platform for grievance redress
based on the United Nations Guiding Principles on Business and Human Rights. They also established an Advisory Board consistingof external experts and an Advisory and Mediation Panel and Investigation Panel consisting of independent expert individuals andorganizations.
In addition to existing mechanisms such as the Whistle-blowing System (Speak Up System),2 the Group will also utilize the platform provided by JaCER to operate a more transparent and effective grievance (remedy) mechanism.
• Grievances received by JaCER about the Group: 0 (FY2022)
1.                         2.
Whistle-blowing System
JaCER

Regarding the human rights of employees of the SMM Group, the Diversity Subcommittee, with the Human Resources Department
serving as its secretariat, works with business divisions and operational divisions in the Head Office to address human rights issues
through our organizational structure. P.86-87
Regarding the human rights of local residents and indigenous peoples, and supply chain (including employees therein), the
Human Rights Subcommittee, with the Sustainability Department serving as its secretariat, works with business divisions and operational divisions in the Head Office to address each group of stakeholders. P.110, P.116, P.120
Our efforts include the formulation of policies, due diligence, and operation of a grievance (remedy) mechanism in accordancewith the UN Guiding Principles on Business and Human Rights (see figure below).

76

P.86-87   2. Local residents and indigenous peoples

Grievance Mechanism: Membership in JaCER

Department in charge(business division, etc.)

Human Rights Subcommittee

GRI 2-25/3-3

Examples: Development of internal systems, educationand publicizing, collaboration with business partners

Guiding Principle 20

Monitor
Examples: Internal and third-party audits, surveying ofbusiness partners, monitoring work conditions

Guiding Principle 21

P.130• Internal and External Communications of the Human Rights Policy
We have produced educational materials in video format available to all SMM Group employees, which includes an overview of thepolicy, messages from top management, and commentary from experts, and share them in internal human rights training andother programs. In addition, to ensure that our stakeholders, especially our business partners, understand our approach and efforts
to respect human rights, we communicate Sumitomo Metal Mining Group’s Sustainability Procurement Policy, established in linewith our human rights policy. P.123

Communicate information externally
Examples: Disclosure of reports, websites

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77Social Social

Business and Human Rights

The Sumitomo Metal Mining Group Policy on Human Rights

We, the SMM Group (hereinafter referred to as the Group),
support the UN Guiding Principles on Business and Human
Rights and promote initiatives to respect human rights basedon these principles.
Our SMM Group upholds “Coexistence with the Earth andsociety” and “Respect for all individuals as the basis” in our
corporate philosophy. Our Group aims to focus on its social
mission and responsibility as a manufacturing company, andaims to contribute to the formulation of a sustainable society
by securing resources and providing society with non-ferrous
metals and high-performance materials.
The Group’s long-term vision is to become a “World Leader
in the Non-Ferrous Metals Industry”, and our sustainability
policy upholds that we will “contribute to the developmentof a sustainable society, and we are working to improve both
our sustainable growth as a business and our corporate
value”.
From among the key social issues that are closely related
to our Group, 11 material issues have been identified, including “Diverse Human Resources”, “Development andParticipation of Human Resources”, “Co-Existence and Mutual
Prosperity with Local Communities”, “Rights of Indigenous
Peoples” and “Human Rights in the Supply Chain”. Our SMM
Group has also formulated the “SMM Group Vision for 2030”
and KPIs as milestones in its long-term vision to addressthese issues, and is promoting initiatives.
We will continue to follow the Sumitomo Business Spirit,
which is the basis of our Group, and aim to become a company recognized by society as the “World Leader in the NonFerrous Metals Industry”.

1. Our Group’s approach to respect for human rights
Our Group understands that all our business activities may
directly or indirectly affect human rights.
Our Group takes utmost care not to infringe on the humanrights of all people, avoids causing or contributing to adverse
human rights impacts through our business activities, andworks towards correcting and remedying any such situationthat may arise.
Where stakeholders, in particular business partners such as
suppliers, are involved in adverse human rights impacts, theGroup encourages them not to infringe on the human rights
and cooperates with efforts for correction and remedy.
In actual efforts, we will particularly focus on the threeareas of ‘’Employees’’, ‘’Local Residents and Indigenous
Peoples’’ and ‘’Supply Chain (including employees therein)’’.

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GRI 2-23/2-24

2. Commitments on fundamental human rights issues
1) Respect for children’s rights and prohibition of child labor We respect the fundamental human rights of children
under 18 years of age and engage in relevant businessactivities and social contribution activities. We do not permit child labor, especially the worst forms of child labor,such as slave labor through forced recruitment in times ofconflict, and labor that is harmful to the health and safetyof children.
2) Prohibition of forced labor We do not recognize modern slavery in the form of forcedlabor, debt labor (work in situations where a person isforced to work for an employer to repay a debt) andhuman trafficking.
3) Prohibition of discrimination Discrimination, harassment and bullying on the basis ofrace, religion, gender, age, sexual orientation, disability,
nationality and other factors are not permitted in employment and work situations.
4) Respect for basic labor rights We respect basic labor rights (such as freedom of association and workers’ right to collective bargaining) andengage in constructive dialogue between labor andmanagement.
5) Working hours and wages We endeavor to properly manage working hours, holidays
and leave in accordance with laws and regulations, including reducing excessive working hours, and we pay wages
at or above the minimum wage stipulated by laws andregulations.
6) Occupational health and safety We actively address to ensure a safe and healthy working
environment and give top priority to safety and health forlife and limb.

3. Scope of application
This policy applies to all executives and employees of the
SMM Group (Sumitomo Metal Mining Co., Ltd. and its
subsidiaries).
Our SMM Group also expects and encourages stakeholders directly linked to our operations, products or services, inparticular business partners, to understand and support thispolicy.

4. Respect for International Norms on Human Rights
Our Group, in cooperation with its stakeholders, will address
to respect human rights in accordance with the followinginternational norms and standards. In addition, our Groupwill comply with all applicable laws and regulations in theregions where we operate.
In the unlikely event of a conflict between these laws andregulations and international norms on human rights, we willseek ways to respect international norms while complying
with the laws and regulations.
• UN Guiding Principles on Business and Human Rights• International Bill of Human Rights (‘’Universal Declarationof Human Rights’’, ‘’International Covenant on Civil andPolitical Rights’’, and ‘’International Covenant on
Economic, Social and Cultural Rights’’)• International Labor Organization (ILO) Declaration on
Fundamental Principles and Rights at Work• ILO Tripartite Declaration of Principles on Multinational
Enterprises and Social Policy• United Nations Declaration on the Rights of Indigenous
Peoples (UNDRIP)• The 2030 Agenda for Sustainable Development (SDGs)• Convention on the Rights of the Child• OECD Due Diligence Guidance for Responsible BusinessConduct• OECD Due Diligence Guidance for Responsible Supply
Chains of Minerals from Conflict-Affected and High-Risk
Areas• International Council on Mining and Metals (ICMM)
Mining Principles• Voluntary Principles on Security and Human Rights

5. Governance and Promotion Structure
The Diversity Subcommittee and the Human Rights
Subcommittee, which are subordinate organizations of the
Sustainability Committee chaired by the President, shallreport regularly on the status of compliance with this policy
and the Group’s efforts to respect human rights to the
Sustainability Committee, which is overseen by the Board of
Directors, and reflect this information in the Group’s business
policies and procedures.

6. Human Rights Due Diligence
In accordance with the OECD Due Diligence Guidance for
Responsible Business Conduct and other guidelines, ourGroup will conduct the human rights due diligence in thefollowing steps.
In doing so, our Group will strive to utilize the humanrights expertise and engage in meaningful consultation withstakeholders.
1) Identify and assess adverse impacts associated with ourGroup’s operations, either directly or indirectly.

2) Integrate the results of the assessment into the company’s processes, including allocating budgets to address
any adverse impacts identified as a result of theassessment.
3) Seek to cease, prevent and mitigate adverse impacts.
4) Monitor and track the status of implementation andcarry out assessments of the effectiveness of our Group’s
initiatives.
5) Disclose information on the status of the implementation and the effectiveness.

7. Grievance Mechanism
Our Group will establish a grievance mechanism that isaccessible to all stakeholders, including not only employees
of our Group but also employees in the supply chain, local
residents and indigenous peoples, and that aims to resolve
grievances by consensus through dialogue.

8. Dialogue and Consultation with Stakeholders
Our Group will engage in dialogue and consultation withstakeholders, including human rights experts, labor unions,customers and business partners, to promote comprehensive
measures based on expertise and a broad range of perspectives for the adaption and the revision of this policy and for
our Group’s efforts to respect human rights.
In addition, we will raise awareness and provide training to
all executives and employees of our Group to promote theirunderstanding of this policy and their engagement in initiatives to respect human rights.

9. Reporting and Information Disclosure
Our Group will regularly disclose the progress of its initiatives
based on this policy.

This policy was formulated with the assistance of humanrights experts, discussed within the Sustainability Committeeof Sumitomo Metal Mining Co., Ltd. and approved by the
Board of Directors.
Akira Nozaki
President and Representative Director
Amended on June 1, 2022

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79Social Social

Employees’ Occupational Health and Safety

Vision for 2030

Occupational Health and Safety Policies, Targets and Plans

GRI 3-3

The Safety & Environment Control Department sets the Group’s policies, targets, and action plans (Group health and safety targets)based on the 3-Year Business Plan, which was formulated in light of the Group’s progress toward its vision for occupational healthand safety, and the president approves them. In each business, based on the Group’s health and safety targets, annual activity targets and plans are established and line health and safety management is promoted, taking into consideration the risks specific toeach business site.

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

Promotion Structure
Approach and PolicyOccupational health and safety is managed by the chain of command in which the president is the person ultimately responsible,
general managers of the relevant divisions provide guidance and supervision, and the person in charge of each business site isappointed as the health and safety manager of that site. Constructive discussions on ways to improve health and safety in theworkplace also take place during meetings of the Occupational Health and Safety Committee comprising representatives fromboth labor and management. Furthermore, the executive officer responsible for the Safety & Environment Control Department,
who is also the General Manager thereof, provides guidance and advice on safety and health initiatives to each division and each
workplace of the Group, while the health and safety manager assigned to each division and business site coordinate efficiently topromote improvements in safety and health. The SMM Group strives to improve health and safety under the concepts of the
OSHMS,* and has business sites that have already obtained ISO 45001 certification or are certified according to the Japan Industrial
Safety and Health Association (JISHA) OSHMS standards. We conduct risk assessments when introducing new equipment or making changes to operational procedures, and make improvements to reduce risk. At overseas business sites, we have also built an
occupational health and safety management framework based on local laws and regulations, and conduct the same level of risk
assessment, improvement of equipment, and hazard prediction activities as in Japan.

Because the Group’s business activities involve working at heights and handling large equipment, heavymachinery, and chemical substances, employees risk occupational accidents, including fatalities, andhealth hazards.
On the other hand, an environment in which employees can work in safety and with security is an
important management element that leads to greater employee motivation and stronger relationships oftrust between employees and the Company. Therefore, the SMM Group aims to create comfortable andsafe workplaces, including at our contractors, and is further advancing its ongoing equipment safety measures and has begun introducing advanced technologies such as the IoT* and AI (Artificial Intelligence).
* IoT: The Internet of things, under which services are deployed through all manner of things being connected through the Internet.

Policy and Targets



Occupational Health and Safety Policy and Goals for FY2023
Occupational Safety Policy

Occupational Health Policy(1) P revention of serious accidents(2) P revention of recurring accidents(3) A chieve work with safe procedures and equipment
through priority-oriented safety activities based on
the Three Reality Principle and line safety
management.

Ensure a comfortable work environment through measures to improve the work environment and prevent
illness

Occupational Safety Goals
1. Occupational accidents (ultimate goal of zeroaccidents)
1) Japan Group employees   • Serious accidents1: 0   • All accidents2: 7 or less
2) Japan contractor employees   • Serious accidents1: 0   • All accidents2: 2 or less3) Overseas business site employees   • Serious accidents1: 0   • All accidents2: 1 or less    1. Accidents resulting in an absence from work of three months
or more as a management indicator    2. Accidents that resulted in absence from work combined withaccidents not resulting in absence from work.

2. Traffic accidents   • Traffic accidents caused by employees resulting ininjury or death: 6 or less

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Occupational Health Goals
1. Dust, lead, and specified substances
1) Control Class 3 workplaces   Number of workplaces: 0 (excluding noise)2) Control Class 2 workplaces   Reduction in the number of workplaces
2. Noisy workplaces Control Class 3 workplaces with a workload value of 1
or more: 1 or less

GRI 3-3/403-1/403-2

GRI 3-3

GRI 3-3* OSHMS is an abbreviation of Occupational Safety and Health Management System and it is a management system that aims to improve occupational health and safety levels at
business sites through the implementation of a set of processes known as the PDCA cycle (Plan, Do, Check, Act), based on cooperation between businesses and their workers

 Promotion Structure
Sustainability Committee
President
Occupational Health & Safety
Subcommittee
Chair: Executive officer responsible for the Safety &Environment Control Department
Deputy Chair: General Manager of Human Resources Department
Members: Health and safety managers of each division

Functional instructions
Collaborate
and cooperate
Check progress
on KPIs

Department in charge(business division, etc.)
Collaborate
and cooperate

Business sites (plants, mines, Group companies, etc.)
Business site health and safety manager(s)Safety & Environment
Control Department
Health and Safety
Manager Meeting

Collaborate
and cooperate

Business site division(s)(department(s), section(s), etc.)

3. Number of employees with work-related ill healthIll employees (requiring treatment): 0
4. Mental health enhancement

Occupational Health & Safety Subcommittee and Safety & Environment Control Department
With regard to employees’ occupational health and safety, which is a material issue, the Safety & Environment Control Department
promotes activities to achieve our vision in cooperation and collaboration with the members of the Occupational Health & Safety
Subcommittee, who are in charge of health and safety in their respective division. In addition, the Safety & Environment Control
Department provides functional instructions to the business division supervisors based on various reports and inspections, provides advice and reports to the competent authorities on the consolidation and response to important matters such as accidents
and disasters, and disseminates disaster case studies within the Group to raise awareness and provide instructions for inspections.

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81Social Social

Employees’ Occupational Health and Safety

The SMM Group Health and Safety Manager Meeting

FY2022 Results

As a rule, once a year, the Safety & Environment Control Department holds a meeting for business division health and safety managers and business site safety and health managers. At these meetings, health and safety managers of departments and divisions
work to improve the level of health and safety management by providing information on the progress of health and safety targets,
information on legal revisions, and explanations and discussions on performance and material issues related to health and safety.
GRI 403-4/403-7

Medium-Term Targets and Progress

KPI

Japan employees all accidents: 24 (20)Japan contractors all accidents: 5 (8)Overseas employees all accidents: 1 (2)SUMITOMO METAL MINING CO., LTD.

Action Plan

Serious accidents occurred. Many recurring accidents occurred, missing the target for all accidents. Multiple accidents
occurred from May to July, but things
calmed down after a state of emergency was declared in July, and there
were no accidents from November toDecember. We promoted essential
safety measures for equipment, separation of pedestrians and vehicles, andinstallation of AI cameras on forklifts,
work observation by supervisors to
avoid leaving unsafe behavior unnoticed, and a full-scale start of VR
training.

• Conduct a comprehensive review ofsafety measures for automated equipment and promote countermeasures
for any risks found• Continue heavy equipment safetymeasures such as the use of AI cameras and separation of pedestrians andvehicles• Monitor the implementation status ofon-site work observation throughinspections and patrols, provide guidance, identify risks, and make
improvements• Develop VR hands-on education using
new original content

Achievement Criteria

Numbers in parentheses are FY2022 results

82

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Final Year of 2027 3-Year Business
Plan (FY2030)

1. Prevent occupational accidents
Serious accidents: zero (in Japan and overseas, including contractors)
All accidents: reduce year on year, with aim of eventually reaching zero• Serious accidents: 3• All accidents

Sustainability Report 2023

Reinforced daily inspections, as work
environments deteriorate due to equipment damage, etc.
Promoted visualization of work environments using time-lapse cameras, dust
meters, etc.
After taking measures based on thethermal environment management
standards, the number of heat strokecases in underground operations was
reduced to zeroContinue to improve equipment toensure good work environments andstrengthen management to prevent
deterioration of work environments• Promote introduction of new technologies, such as automatic underground
HLD to reduce individual exposure andvarious tools for visualization of work
environments• Strengthen equipment maintenance(inspection and repair)• Share good practices for equipment
and management improvement• Achieve year-on-year reduction in
number of workplaces that present
higher health risks• Occurrence of occupational diseases:
zero

Targets through all 3-Year Business Plan
periods• Number of workplaces that present
higher health risks: reduce year on year
• Address new risks (2024 3-YearBusiness Plan)• Realize comfortable workplace environment (2027 3-Year Business Plan)• Occurrence of occupational diseases:zero• Make improvements to equipment led
by top management• Upgrade management techniquesthrough line management and manage and maintain effects ofimprovement• Reduce individual exposure time
Analyze and utilize individual sampling
and continuous monitoring data.
Utilize biosensors for heatstroke prevention, etc.
• Ensure implementation of the threeareas of management in occupational
health and safety(working environment management,
work management, and healthmanagement)• Continue and review the actions on
the left• Respond to new regulations and risksof handled substances (2024 3-YearBusiness Plan)• Include improvement of workloads
and strengthening of health management through DX (2027 3-YearBusiness Plan)GRI 3-3

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.
FY2022 Results• Achieved year-on-year reduction in
number of workplaces that present
higher health risks
2022: 2 workplaces (2021: 5 workplaces)• Occurrence of occupational diseases:
zero

Action Plan

In accordance with the Industrial Safety and Health Act, the Occupational Health and Safety Committee meets once a month ateach of the Group’s business sites in Japan. At the Occupational Health and Safety Committee meetings, a wide range of health andsafety issues are discussed, including the progress of health and safety activity plans, analysis of the causes of occupational accidents and measures to prevent recurrence, results of working environment measurements, results of medical examinations, reports
on improvements to equipment and work methods, reports on the correction of areas identified during patrols, safety and management methods for new chemical substances handled, results of pre-operational safety examinations of new equipment, andinformation on legal revisions. A summary of the Occupational Health and Safety Committee meetings is reported monthly bybusiness sites to the Safety & Environment Control Department, which confirms that safety and health activities are being properly
implemented at each business site.
At SMM Group’s overseas business sites, occupational health and safety committee meetings are held in accordance with thelaws and regulations of each country to ensure workplace safety through the creation of accident prevention measures among
businesses and their workers.
Regarding regular contractors, Occupational Health and Safety Committee meetings and informal gatherings are held every
month by contracting organizations in which contractors and others participate and information is shared. This information is takenback to the company where it is shared and used to make notifications.

Final Year of 2027 3-Year Business
Plan (FY2030)

2. Prevent occurrence of occupational diseases
Number of workplaces that present higher health risks: reduce year on year
Occurrence of occupational diseases: zero

Achievement Criteria

Occupational Health and Safety Committees

KPI

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Serious accidents: zero (in Japan andoverseas, including contractors)
2024 targets
Japan employees all accidents: 7/year or
lessJapan contractors all accidents: 2/year
or less
Overseas employees all accidents: 1/year
or less
1. Enhance equipment safety
1) Initiate DX in mines and battery
plants2) Education on risk assessment
manuals
2. Develop the management system1) Identify the actual circumstances ofline management• Utilize work observation• Check and review measuresagainst reoccurring accidents
3. Develop human resources
1) F ormulate education programs for
managers and supervisors, etc.
2) Improve education for all employees
Hazard simulation training using VR

Targets through all 3-Year Business Plan
periods
Serious accidents: zero (in Japan andoverseas, including contractors)
All accidents: reduce year on year, withaim of eventually reaching zero

1. Enhance equipment safety
1) Promote (2024 3-Year Business Plan)and realize DX2) Make facilities safer through risk
assessment manuals (2024 3-YearBusiness Plan) and expand
2. Develop the management system
1) Strengthen (2024 3-Year BusinessPlan) and operate line management
3. Develop human resources
1) Revise (2024 3-Year Business Plan)and establish manager and supervisor education2) Review (2024 3-Year Business Plan)and implement new education for
all employees

Individual Initiatives for Occupational Health and Safety
Health and Safety Management in the Besshi District
In the Besshi District of Niihama City, Ehime Prefecture, where many of the Group’s business sites are located, the Besshi-Niihama
District Division Safety & Environment Control Center plays a central role in improving the level of health and safety management
by providing guidance on health and safety management initiatives to business sites including Group companies in the district,holding regular information exchange meetings and study sessions, and conducting cross-patrols.

Occupational Health and Safety Risk Assessments

GRI 403-2

The SMM Group proactively uses risk assessments (investigation of hazard or harmfulness) to evaluate hazards and take appropriate
countermeasures against sources of risk that may cause accidents or health hazards due to equipment, operations, or a combination of both. For example, when we introduce new equipment, we conduct a risk assessment at the time of design, taking into consideration the intrinsic safety of the equipment, and the risk assessment is reflected in the design of the equipment. Before
equipment is installed and put into operation, a risk assessment (audit) is conducted again with supervisors, operators, etc., andimprovements are made. After the facility goes into operation, we continuously report on the status of maintenance and improvement of residual risks at the Occupational Health and Safety Committee meetings, and work to improve the level of health andsafety by ensuring that our efforts are promoted.

Inspections, Patrols
The head of the business division with jurisdiction conducts annual patrols of the business site, including affiliated companies
under his/her jurisdiction, to confirm that health and safety management is being properly implemented (in 2022, 50 inspections
were conducted at 39 business sites in Japan and overseas). In principle, once a year, the General Manager of the Safety &Environment Control Department or his/her designate conducts a security, safety, and occupational health management inspection of each business site, and reports the results to the president, the head of the business division with jurisdiction over the business site, and the head of the business site (in 2022, due in part to the impact of the COVID-19 pandemic, 28 of the 47 businesssites in Japan covered by the safety statistics were inspected). Furthermore, in the event of a serious accident or disaster, an on-site
investigation is conducted immediately.
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Employees’ Occupational Health and Safety

Each business site conducts safety patrols by business site supervisors, work observation patrols at each workplace, and safety
activities in small groups. Some workplaces receive guidance from outside instructors to check and improve dangerous locations at
the site.

Education
Education in Hands-on Training Facilities

GRI 403-5

Since 2010, the SMM Group has been operating a hands-on training facility (Oji-kan Facility) in Niihama City, Ehime Prefecture,
which consists of a Hazard Simulation Zone and an Equipment Skills Training Zone. The purpose of the Hazard Simulation Zone is toincrease sensitivity to occupational safety and occupational health through simulated experiences of dangers that may be present
in daily work, while the purpose of the Equipment Skills Training Zone is to develop operators with strong skills in equipment anddevices through hands-on experience with actual on-site equipment, cut models, etc. In both zones, in addition to the curator andfull-time instructors, site managers and supervisors, and veteran employees provide training as appointed instructors. Oji-kan
Facility staff have been traveling to workplaces since 2013 to conduct on-site hazard simulation training, and we are working to
expand the number of participants. In addition, each business site uses Oji-kan Facility based on a risk assessment of its own workplace to conduct safety education through its own unique program.

Results and Reflections on FY2022 Initiatives
In FY2022, we missed our safety targets (seven or less accidents and zero serious accidents for all Group companies in Japan), having 24 total accidents and three serious accidents. Although the risk of heavy machinery accidents has been reduced as a result ofefforts in FY2022, this failure is believed to be due to the accidents caused by human error such as simple mishaps or carelessness,
mainly during the summer, in addition to incomplete safety improvements in automated equipment, etc. Therefore, measuresagainst human error are necessary in addition to further promote intrinsic equipment safety improvements.
As for the health-related targets, we have achieved zero cases of work-related ill health, with Control Class 3 workplaces reduced
from the previous year (from five to two), and we will steadily formulate and implement improvement measures toward achieving
zero Control Class 3 workplaces.
In addition, chemical management is undergoing a major transformation starting in May 2022. First, the entire company will
share the overall schedule and outline of the changeover, and then we will ascertain information on the legal revisions that will besequentially enforced as early as possible and respond appropriately.

Action Plan for FY2023

 Number of Employees Using the Oji-kan Facility and Attending On-site Training (as of the end of 2022)
Oji-kan Facility Users

20,599(Breakdown) Group companies in Japan

16,136

Contractors

4,360

Overseas business sites

In FY2023, we will promote comprehensive inspections and measures for automated equipment to further promote intrinsic
equipment safety.
In addition, to prevent human error and recurring accidents, we will improve the skills of workers by strengthening education forline managers, promoting 5S (a workplace organization method) and improvement of the work environment through the initiativeof top management, and enhancing education at Oji-kan Facility, including incorporating VR. Through these efforts, we will achieve
a comfortable and safe work environment.

103

Attendees of on-site training

9,140

Total

29,739Action Plan for FY2023

External Communication
We participate in the health and safety committees of the Japan Mining Industry Association and Kyohokai* to obtain informationon legal revisions and response methods, and to introduce the latest health and safety technologies and improve the level ofhealth and safety by visiting each other’s factories and developing good practices.
We also use outside consultants to conduct safety culture assessments at SMM Group’s major business sites, and the Safety &Environment Control Department presents the results to the business sites, and discusses them to improve safety initiatives.
* Kyohokai: Consists of more than 200 contractors for Toyota Motor Corporation

Priority Initiatives for FY2022

GRI 403-5

In addition to continuing to improve the intrinsic safety of its equipment, the SMM Group is strengthening measures to separate
pedestrians from vehicles and promoting the installation of AI cameras on heavy machinery to prevent the fatal accident that
occurred in 2021 due to contact with heavy machinery (a forklift). In addition, we are focusing on the prevention of serious accidents caused by moving equipment, heights, heavy objects, etc. We have also launched initiatives for smart mining. To enhanceline management, including improving the skills of management and supervisory staff, we are promoting the implementation of
the work observation manual and point card, which were formulated in 2021. We are also enhancing hazard simulation training by
incorporating VR equipment.
In terms of health, we are promoting equipment improvements with the goal of eliminating workplaces in the Control Class 3.
We are also promoting systematic improvement of work environments to eliminate workplaces in Control Class 2. The Safety &Environment Control Department planned health patrols, and together with the Safety & Environment Control Center in the Besshi
District, where there is a high concentration of such workplaces, and the health and safety officers of business divisions provided
guidance and followed up on progress in improving and maintaining work environments at business sites through patrols andother means.

84

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Sustainability Report 2023

1. Improve and make equipment intrinsically safe, withemphasis on preventing serious accidents(1) P romote overall inspection and implementation ofsafety measures for automated equipment(2) Identify risks through on-site work observation guidance, requests for implementation, etc.
2. Prevent recurring accidents(1) D ig deeper into causes, focus on countermeasures, andpromote horizontal development(2) H ands-on training using VR

3. Infrastructure development(1) R einforce line safety management(2) I mprove work environments to encourage safe behavior
from employees

Data on Employee’s Occupational Health and Safety• Work-Related Incidents P.142• Work-Related Ill Health P.143• Occupational Health and Safety Management System P.144• Identification of Hazard Sources, Risk Assessment, and Accident Investigation P.145• Services, Education, and Training regarding Occupational Health and Safety P.146

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Social Social

Diverse Human Resources /Development and Participation of Human Resources
Vision for 2030

Company-wide Group on Human Resources

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

Approach and Policy

GRI 3-3

Based on the approach of “respect for all individuals” set forth in our Corporate Philosophy and in accordance with the Sumitomo Metal Mining Group Policy on Human Rights, we work to secure, foster, and utilize human capital by respecting the diverse values of all employees and fostering workplaceenvironments in which all employees can fully demonstrate their abilities.
The business environment surrounding companies is a difficult one in which the future is difficult toforesee, and societal changes that overturn conventional wisdom have begun to occur one after another.
We believe that our Company, too, will face difficulty in aptly adapting to such changes through the continuation of conventional approaches. Building an organization and developing employees who are notafraid to make changes, even changing themselves, is an urgent challenge for us.
In response, in July 2023 we revised our human resource system to one centered on a job grade system
for managerial track employees, in order to take in diverse human resources, make use of diverse values,and enhance our corporate value while maintaining a membership-style employment mechanism thatallows organizations and employees to grow from a long-term perspective. We will make our Company
into one that continues to provide the sense of security and stability of the past while also enabling newchallenges, transformation, and growth as all employees learn and grow autonomously.

Led by the Human Resources Department, this Meeting of General and Section Managers in Charge of Human Resources at all
Group business sites in Japan meets one or two times per year to update and share information on matters including legal revisions, human resources, and organizational management trends, as well as to align awareness of human resources issues and determine policies concerning new initiatives. Its main agenda items include legal and systemic revisions, issues related to the securing,
fostering, and utilization of human capital and future measures to address these, and measures undertaken by business sites.
Following conference meetings, we connect discussions to the study and execution of effective personnel measures at sites.

Central Labor-Management Meeting
The Central Labor-Management meeting is held at least once a year to contribute to trouble-free discussions and negotiations
between labor and management and to the stability of labor-management relations. Participating parties include all officers,
including the president, on the company side, and the Federation of Sumitomo Metal Mining Workers Unions and all company
union committee chairs on the union side. We explain the Company’s business situation and outlook to the union and engage inactive exchanges of opinions with union executives.

GRI 3-3Company

Labor union

President

Chair:
General Manager ofthe Human Resources
Department
Members:
Personnel in charge ofeach department

Collaborate
and cooperate

Diversity Promotion Section
Human Resources
Development Section

Department in charge(business division, etc.)

Business sites(plants, mines, Group companies, etc.)

Chapter

Sustainability Report 2023

Share information,
collaborate

The labor-management committees are charged with implementation when details of matters discussed between labor and management are investigated and studied, or when the effectiveness of the matters that have already been decided and put into operation are subjected to verification. The committees are formed for a given length of time as necessary, with their conclusions
reported to labor-management representatives.

Company
union

Share information, collaborate

Meeting of General andSection Managers incharge of Human Resources
Meeting of Managers incharge of Wages

Federation of
Sumitomo Metal Mining
Workers Unions

Check progress
on KPIs

Diversity
Subcommittee

Human Resources
Department

Occupational Health and Safety Committee
Labor-management council meetings,
labor-management discussions
Working Hours Committee, etc.

SUMITOMO METAL MINING CO., LTD.

Functional
instructions

Central Labor-Management meeting
Spring negotiations
Labor-management council,
labor-management advisory committee

Corporate Value
Enhancement
Strategic Committee

Local Labor-Management meetings are arranged one or more times per month as venues to regularly explain our business situation to labor unions (company unions and chapters) and employee representatives, and to collect opinions and requests from
employees. In response to requests regarding occupational health and safety and improvements to work, we perform checks of situations and then enact necessary improvement measures.

Labor-Management Committees

Sustainability Committee

86With the Human Resources Department as its secretariat, the Diversity Subcommittee engages in discussions and confirmation ofprogress on KPIs, placing a particular focus on diversity within the area of human resources utilization. It is composed of members
from other departments and meets two or more times per year.

Meeting of General and Section Managers in Charge of Human Resources Promotion Structure

Chair: Executive officer in charge of the
Human Resources Department
Deputy Chair: General Manager of the Human
Resources Department
Members: General managers of divisions, General
Manager of the Technology Division,
General Manager of the Engineering
Division, executive officers in charge ofcorporate divisions, executive officers incharge of operational divisions in the
Head Office

Diversity Subcommittee

Local Labor-Management Discussions

Promotion Structure

Company-wide Groupon Human Resources

With the executive officer in charge of the Human Resources Department as the Chair and the General Manager of the Human
Resources Department as the Deputy Chair, the Company-wide Group on Human Resources is placed within the Corporate Value
Enhancement Strategic Committee to link management strategy with human resources strategy. In addition to promoting therational assignment of human resources, the group engages in discussions of cross-company human resources strategies related tothe securing, fostering, and utilization of human capital, including the systematic development of the next generation of management and future managers. It meets one or more times per quarter.

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Diverse Human Resources / Development and Participation of Human Resources

Medium-Term Targets and Progress

GRI 3-3

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.

1. Promote working style reform and create workplaces that make use of digital technology, enabling diverse human resources to play
vibrant and active roles
1) Improve scores for “Management by managers and superiors,” “Appeal of job,” and “Work environment” in employee awareness survey

Action Plan

• Confirm scores and verify review of
KPIs in the employee awareness survey
to be conducted annually from FY2023• Review personnel-related systems• Confirm scores and verify review of
KPIs in the employee awarenesssurvey• Review personnel-related systems(1) Number of female SMM managers:
50 (35 during 2024 3-Year BusinessPlan) (7% of managers (5% during2024 3-Year Business Plan))(2) Percentage of female SMM employees: 20% (16% during 2024 3-YearBusiness Plan) (550 employees (500
employees during 2024 3-YearBusiness Plan))(1) Continue training to foster rolemodels(2) Target number of females to be
hired: 10–15/year (new graduates +mid-career)(1) Develop career paths for training
female managers (2 production sites,
4 positions in administrative offices(3 positions during 2024 3-YearBusiness Plan))(2) Target number of females to be
hired: 10–15/year (new graduates +mid-career)• Increase from the number achieved
during each 3-Year Business Plan

Action Plan

• Develop an environment that allows
employees of foreign nationality to
become established at the company• Develop an environment that allows
employees of foreign nationality to
become established at the company

Action Plan

Sustainability Report 2023

Achievement
Criteria

SUMITOMO METAL MINING CO., LTD.

• Consider new recruitment channels
aimed at increasing the percentage of
employees with disabilities• Continue to accept university student
internships and practical training forspecial needs schools• Implemented initiatives to foster aworkplace climate aimed at retaining
employees with disabilities (convened
meetings of personnel in charge ofrecruitment of people with disabilities,etc.)• 2.7%• 3%• Host practical workplace training for
employees with intellectual disabilities(all sites)• Head Office recruitment: recruit college
graduates and those with higher qualifications from internship programs• Recruit people with mental illness(Head Office)• Recruit people with intellectual
disabilities• Expand recruitment channels (graduate internship, high school graduate
workplace training, mid-career
employment support)• Use of parental leave: 100% forwomen, 95% for men (excluding leave
with pay for child-rearing: 60%)
• Employees who left work due to nursing care: 0• Implement measures for medical
treatment• Seminars on support systems for balancing work with child-rearing andnursing care
• Seminars on the parental leave system• Implement interviews before taking
parental leave and before and after
returning to work
• Nursing care consultations (Work-life(WL) Support Desk)• Consultations for balancing medical
treatment and work (WL Support Desk)• Seminars on support systems for balancing work with child-rearing andnursing care
• Seminars on the parental leave system• Implement interviews before taking
parental leave and before and after
returning to work
• Nursing care consultations (WL
Support Desk)• Consultations for balancing medical
treatment and work (WL Support Desk)• Reduce the number of employees taking long-term leave• Reduce the number of employees taking long-term leave• Assess current situation of employees
on long-term leave and confirm
actions for individual situations• Continue actions for individual
situations

2. Support employees’ mental and physical health
1) Reduce the number of employees taking long-term leave• The percentage of employees taking
long-term leave due to mental healthdisorders and the percentage of total
number of days of leave taken
increased
Percentage of employees taking leave
FY2021: 0.97%  FY2022: 1.12%
Percentage of total number of days ofleave taken
FY2021: 0.37%  FY2022: 0.43%• Implemented site-specific measures(Ome District Division, Harima
Refinery), based on organizational
analysis of stress checks• Assessed mental health training attendance rate
Details P.103-104

KPI• Use of parental leave: 100% forwomen, 95% for men (excluding leave
with pay for child-rearing: 50%)
• Employees who left work due to nursing care: 0• Implement measures for medical
treatment

Initiatives using results of stress checks• Based on results from analyses ofgroups, analyze personnel and labor
issues by department, set themes for
improvement, and draft and executeaction plans• Promote “Mental Health Management
Supervisor Training” for managers andsupervisors at workplaces with issues(100% attendance rate)

2. Support employees’ mental and physical health2) Percentage of employees with abnormal findings indicated in health checkups: 50% or lower• Percentage of employees with abnormal findings indicated in health checkups: 58.0%• Created a foundation for health andproductivity management promotion
by establishing related policies andregulations and delivering a message
from the president on the health andproductivity management kick-off• Set medium- to long-term milestonesin the “Employee Health Promotion
Roadmap” and formulated and executed a FY2022 promotion plan incorporating the roadmap• Obtained first certification as a Health& Productivity Outstanding
Organization
Details P.102-106• Strengthen letter-based follow-up
with employees at high risk for lifestyle-related diseases• Implement program for quitting
smoking• Address employees at high risk of serious illness• Make use of health portal site• Hold walking events• Hold regular health seminars• Continue certification as a Health &Productivity Outstanding Organization• Prepare for creation of a company-wide health and productivity management system

Health and productivity management
initiatives• Develop Health and Productivity
Management Declaration and organization and systems for its promotion• Obtain Certified Health & Productivity
Outstanding Organization Recognition• Percentage of employees with abnormal findings indicated in health checkups: 55% or lower

Health and productivity management
initiatives• Continue to obtain Health &Productivity Stock Selection• Percentage of employees with abnormal findings indicated in health checkups: 50% or lower (52% or lower
during period of 2024 3-Year Business
Plan)

Action Plan

• Increase from the end of FY2021

KPI• Use of parental leave: 100% forwomen, 95% for men (excluding leave
with pay for child-rearing: 45%)
• Employees who left work due to nursing care: 0• Continue to hold seminars on theparental leave system, and on support
systems for balancing work withchild-rearing and nursing care, etc.
• Continue to provide consultation
through the Work-life Support Desk
• Implemented career life plan andcareer design training

Achievement Criteria

Achievement
Criteria• Continue study of measures related toissues identified in FY2022 and continue hearings on issues throughexchange meetings, etc.
• Consider workplaces for trial acceptance of foreign employees and start
approach to local recruitment• Use of parental leave: 106% forwomen, 95.6% for men (excluding
leave with pay for child-rearing: 42.4%)• Employees who left work due to nursing care: 2• Conducted seminars, briefings on programs, etc. (seminars on the parental
leave system, support for balancing ofwork with child-rearing and nursing
care, etc.)• Implemented career life plan andcareer design training
Details P.93, P.96-97

Action Plan

Action Plan

(1) Number of female SMM managers:
25 (3% of managers)(2) Percentage of female SMM employees: 14% (460 employees)

1. Promote working style reform and create workplaces that make use of digital technology, enabling diverse human resources to play
vibrant and active roles
5) Assign jobs and provide support matched to employees’ life stages

Achievement Criteria

Achievement Criteria• Continue to dispatch future leader
candidates to training in interactions
with other industries, in order todevelop human resources who canserve as role models• Begin study aimed at the formulationof duty-specific recruitment and development plans

1. Promote working style reform and create workplaces that make use of digital technology, enabling diverse human resources to play
vibrant and active roles
4) Percentage of employees with disabilities: 3% or higher (SMM)• 2.57% as of June 1, 2022
• Accepted university student internships and workplace practical training
for special needs schools• Implemented initiatives to foster aworkplace climate aimed at retaining
employees with disabilities (convened
meetings of personnel in charge ofrecruitment of people with disabilities,
etc.)
Details P.101

88• Improve scores from the previous fiscal
year for “Management by managers
and superiors,”“Appeal of job,” and“Work environment” in employee
awareness survey

1. Promote working style reform and create workplaces that make use of digital technology, enabling diverse human resources to play
vibrant and active roles
3) Expand number of managerial track employees of foreign nationality• 14 as of the end of FY2022• Conducted questionnaires for foreign
employees aimed at understanding
current problems, and conductedinterviews with those who wantedthem• Provided feedback to superiors andconducted hearings on issues
Details P.101

KPI• Improve scores from the previous fiscal
year for “Management by managers
and superiors,”“Appeal of job,” and“Work environment” in employee
awareness survey

1. Promote working style reform and create workplaces that make use of digital technology, enabling diverse human resources to play
vibrant and active roles2) (1) Number of female managers: 50 (SMM)(2) Percentage of female employees: 20% or higher (SMM)(1) Number of female SMM managers:
20 (2.9% of managers)(2) Percentage of female SMM employees: 12.9% (445 employees)• Dispatched five future leader candidates to training in interactions withother industries, in order to develop
human resources who can serve asrole models• In our recruitment plan, set the recruitment percentage for women in managerial track positions to 20% andformulated target numbers to bereached by 2030
Details P.99-100

KPI• Enhance all scores in the FY2023
employee awareness survey throughthe introduction of one-on-one meetings and activities aimed at creating an
open and vibrant workplace climate

Achievement
Criteria• Both scores have improved since theprevious survey (2019)
Appeal of management measures3.473.55
Management by superiors  3.563.69
Appeal of job 
3.383.45
Overall appeal of workplace3.233.36
Details P.98

KPI

Final Year of 2027 3-Year Business
Plan (FY2030)

Final Year of 2027 3-Year Business
Plan (FY2030)

Action Plan

KPI

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

KPI

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Achievement Criteria

FY2022 Results

FY2022 Results• Initiatives for obtaining Health &Productivity Stock Selection• Steadily implement measures for bothmental and physical health (encourage
voluntary health checkups, establish
exercise habits, support improved
dietary habits, continue employment
environment surveys)• Send follow up letters to employeeswith a high risk of developing lifestyle-related diseases• Verify and review effectiveness ofmeasures• Initiatives for obtaining Health &Productivity Stock Selection• Steadily implement measures for bothmental and physical health (encourage
voluntary health checkups, establish
exercise habits, support improved
dietary habits, continue employment
environment surveys)• Send follow up letters to employeeswith a high risk of developing lifestyle-related diseases• Verify and review effectiveness ofmeasures

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Social Social

Diverse Human Resources / Development and Participation of Human Resources

FY2022 Results

KPI

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Final Year of 2027 3-Year Business
Plan (FY2030)

3. Diversify opportunities to enhance the abilities of employees according to employee needs and work needs
1) Utilize one-on-one meetings that bring out the motivation and potential of every employee and boost the growth of subordinates
through regular dialogues between superiors and subordinates• Firmly establish one-on-one meetings
in the Head Office District• Expand one-on-one meetings outside of
the Head Office District (primarily management and administrative positions)• Firmly establish one-on-one meetings
Group-wide

Action Plan

• Continuously implement initiatives toimprove the implementation rate andrelationships between superiors andsubordinates in the Head OfficeDistrict• Extend to managerial track and staff
positions at all business sites in FY2023.
Make use of knowledge in the Head
Office District to improve the implementation rate and relationships
between superiors and subordinates

Achievement
Criteria• Introduced one-on-one meetings inthe Head Office District from August2022• Implementation rate: Over 70% (questionnaire results following
introduction)
Details P.93

• Verify implementation status andaddress issues regularly using questionnaires, etc.
• Use an employee satisfaction survey tonumerically monitor human relationships in the workplace and communication, etc.

• Verify implementation status andaddress issues regularly using questionnaires, etc.
• Use an employee satisfaction survey tonumerically monitor human relationships in the workplace and communication, etc.

the quality of communication between superiors and subordinates and draw out the capabilities of every individual, we are introducing and gradually expanding one-on-one meetings.
In addition to the Human Resources Division, we conduct division-specific and function-specific human resources development.
For specific function, we clarify the person in charge of development and engage in Company-wide development and utilization(assignment) of human resources.
* To accommodate differences in goals and basic approaches in development and utilization (assignment), we have established human resource management classifications of “managerial track” and “operating track” in line with the roles of employees, and are developing different human resource development systems, conducting development and assignment in line with each human resource system

Training Systems
We are building training systems aimed at improving the capabilities required for each human resource management classification,
hierarchical level, job function, and individual.
 SMM Human Resources Development Program• Opportunities to consider future career(roles) and OJT and OFF-JT to realize
such careers are provided• JCO Study Center training participation
rate (SMM employees: 90%; Group
companies’ employees: 80%)

• Opportunities to consider future career(roles) and OJT and OFF-JT to realize
such careers are provided• JCO Study Center training participation
rate (SMM employees: 90%; Group
companies’ employees: 80%)

• Implement career training and introduce a talent management system• Check participation rates and takeaction for sites with low participation
rates• Examine measures in light of 2021 and2024 3-Year Business Plans• Check participation rates and takeaction for sites with low participation
rates

Support for
self-development

Development of global
human resources
Compliance, governance,risk management

Managers (managerial track employees)

General employees (managerial track and operating track employees)
OJT programs for new employees
Function-specific OJT programs for new employees
Mining School
Brush-up training

e-learning
Foreign language programs
Fee assistance for language proficiency tests
Correspondence education
General culture education (Head Office)Overseas training
Language training prior to overseas assignment
Global staff training
Compliance seminar
Human rights seminar, seminar on promotion of diversity
JCO Study Center training

External training

KPI 	3. Diversify opportunities to enhance the abilities of employees according to employee needs and work needs
3) Provide opportunities for self-development matched to each employee’s life plans and needs (correspondence courses, online training, etc.)

Employee data (including new hires and departures)• Create an environment in which
employees of all generations with willingness to learn on their own canacquire the required knowledge andskills in a timely manner• Create an environment in which
employees of all generations with willingness to learn on their own canacquire the required knowledge andskills in a timely manner

ActionPlan• Together with the revision of the managerial track personnel system in July
2023, introduce self-development
tools for all managerial track employees and conduct evaluation in bothquantitative and qualitative terms,
with the aim of creating a corporate
culture in which all employees continue to learn and growAchievement
Criteria• Introduced self-development support
tools (online learning tools) for managerial track employees and managers
in the Head Office District
Details P.93

OJT

Action Plan

• Implement career training (training insecond year since joining company,
training at 35, 43, 50, and 58 years ofage)• Introduce talent management systemfor duties other than human resources
in FY2023• JCO Study Center training
Conduct focused teaching at affiliatedcompanies with aim of achieving target attendance rate of 80% for
employees of Group companies

Achievement
Criteria• Implemented career training (training
in second year since joining company,
training for E-class and newly-promoted section managers, training at
50 and 58 years of age)• Implemented trial introduction of atalent management system that contributes to strategic human resources
development and personnel assignment in human resources duties• J CO Study Center training participation
rate: SMM employees: 92%; Group companies’ employees: 78% (as of March 2023)
Details P.90-94

OJT

Self-development

3. Diversify opportunities to enhance the abilities of employees according to employee needs and work needs2) 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

OFF-JT

Officers

KPI• Collect information on self-development support tools and introduce newmeasures as needed• Collect information on self-development support tools and introduce newmeasures as needed

P.146-152

Pursue higher education in Japan
Dispatch to MINETEC
Training in Japan

Safety, skills

Hazard simulation training
Equipment skills training

Women’s career support

Training with women from other industries
Individual career support

3-year program for
managerial tracknew employees• Training program for new employees• Short-term overseas training• Second-year training• Third-year graduation paper presentation

Mid-career hires
Hierarchical level-specifictraining

Training program for mid-career hires
Secondary training for mid-career hires
Seminar for newly promoted employees(E-class, S-class, F-class)

Class-specific training

Preparatory curriculum (e-learning)

Human Resources DevelopmentGRI 3-3/404-2

Development of next
generation of management

Approach to Human Resources Development
We believe that autonomous growth by every employee will lead to sustainable growth for our Group. In order to build a new business model and adapt to a changing business environment, we provide all employees with opportunities to improve their capabilities and are developing human resources who can steadily execute on growth strategies.
We believe that self-development by individual employees and practical on-the-job training (OJT) that is planned and continuously
carried out through everyday work, along with appropriate assignment of personnel resources with an intention of development, form
the foundation for employees’ growth. In OJT, we encourage not only acquisition of knowledge and skills for jobs but also growth as aperson through work. In off-the-job training (OFF-JT), we are constructing a system for diverse training, workshops, e-learning, andother training for each human resource management classification* and are promoting autonomous learning by employees.
Under the thinking that appropriate involvement of superiors is important in the growth of subordinates, superiors make efforts
to actively support the motivation and enthusiasm of subordinates. In our target management system, we evaluate employees’
medium- to long-term efforts and attitudes toward challenges. We also provide active support for career development, including
our transfer request system, so that all employees can independently consider their careers and work with motivation. To improve

90

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Sustainability Report 2023

Career training

Project leaders
Specialized education

Work-life support

Middle Management Program
Officers’ Coaching School
Training to develop thenext generation of executive managers
Training and seminars withother companies’ managerial track employees
Career design training for persons in their 30s (Head Office)Career design training (at age 35 and 43)
Career design & life plan training (at age 50 and 58)
Project management training
Outside seminars and workshops
Business basics enhancement training (Head Office)New employee’s supervisor training
Supervisor/line leader training
Problem-solving training for office workers
Smelting & Refining University
Seminar for balancing work with child-rearing and nursing care

 Education for managerial track employees    Education for operating track employees    Education for all employees

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91Social Social

Diverse Human Resources / Development and Participation of Human Resources

Training to develop thenext generation of
executive managers

We have held training to develop the next generation of executive managers since FY2011. This training is for the
purpose of selecting leader human resources in their late 40s who will lead our Company in the near future, instilling
managerial sensibilities in the participants. We implement a practical program of about nine months aimed at fostering preparedness and motivation, while training participants in the knowledge and thinking skills needed to stand at
the starting line of change and growth and engage in corporate management amid global and rapid environmental
changes.

Middle Management
Program(MMP)

Since FY2008, we have carried out MMP as a program to select human resources in their 30s to early 40s who can be
expected to lead organizations in the future, and to equip these persons with more high-level perspectives. Throughdiscussions of material issues for the achievement of Vision for 2030 over the course of about five months, with members of our management team serving as lecturers, MMP works to raise the level of the mid-level managers who willlead the next generation.

Hierarchical Position-Specific Education for Managerial Track Employees
This education falls under two types: grade-specific training conducted when employees are assigned to a job grade corresponding to staff in charge of a business or bearing duties and responsibilities for managing a workplace, and preparatory curriculum thatmust be taken in advance. The education enables employees to take on the duties and responsibilities demanded of each job
grade category and to deliver results.
Grade-specific training

In this training, employees visit Sumitomo‘s and Company-related facilities to encounter the Sumitomo Business Spirit
and the Company’s history, to reaffirm their self-awareness and their responsibilities as employees of the Company.

Preparatory
curriculum

We are developing e-learning aimed at advance acquisition of the knowledge and skills (in-house knowledge, problem solving, management skills, etc.) that employees need in order to take on the duties and responsibilities of higher
job grade categories. Under this training, employees autonomously consider their careers and study and acquire
required knowledge, capabilities, and skills in advance, to enhance their capabilities for executing work and to meet
expectations for fulfilling their required duties and responsibilities.

Self-Development Support and Recommendations
3-Year Program for Managerial-Track New Employees
We consider the first three years since joining the Company to be a development period for new employees, during which thefoundation for the employees as businesspersons is formed. By urging employees to envision their futures beyond those first three
years, encouraging self-improvement under clearly defined three-year goals, and conducting training programs at set times, we
promote employees’ growth as individuals.

Training program for
new employees

We conduct new employee training for about one month under a curriculum focused on classroom learning, group
work, and visits to business sites and facilities related to the Company, while also teaching fundamental matters forworking persons. This training is aimed at equipping employees with an awareness as employees of the Company
and a recognition of their responsibilities, and having them envision their own roles and futures. Together with thistraining, we implement overseas programs such as language training to develop global human resources.

Second-year training

We work to enhance motivation toward work and engagement with the organization by providing employees with
opportunities to reaffirm their positions and expected roles, as well as to envision their future careers, by looking backon their first two years since joining the Company.

Third-year graduation
paper presentation

To actively support employees’ own motivation and ambition, we offer numerous programs including online video-based learning,e-learning, correspondence education, and foreign language courses (English, Spanish, and Chinese), and are preparing systems
that let employees learn autonomously. In our online video-based learning program for all managerial track employees, we promote autonomous learning by employees through the acquisition of knowledge and skills required for higher grade categories(problem solving capabilities, management skills, basic management knowledge) and knowledge concerning the Company’s business strategy, occupational health and safety, diversity, and labor management. From FY2023, all employees are eligible for qualification congratulatory gifts aimed at developing employees who possess high-level expertise and at securing holders ofqualifications necessary for business or closely related to work, along with appointment and notification allowances designed tomotivate employees who take on new external responsibilities due to appointment or notification.

Promotion of Growth, Communication, and Human Resource Network Creation

One-on-one meetings

In FY2021, we introduced one-on-one meetings aimed at raising the quality of communication between superiors
and subordinates, tapping the capabilities of every individual, and building organizations that achieve results. Led by
and for the benefit of subordinates, one-on-one meetings provide regular opportunities to draw out the capabilities
of subordinates and promote their autonomous growth through dialogues with superiors. In carrying out the meetings internally, we work to widely communicate psychological safety, the purpose and significance of the meetings,
and the required skills and mindset to superiors and subordinates.

DX Salon

Every two months, we hold DX Salon as an opportunity for reviewing conventional ways of working as well as to spur
employees’ interest in digital technologies. Here, employees who have tackled business efficiency through digitalmeans can share the background, details, and outcomes of their efforts. Through these casual face-to-face exchanges
of information, participants have increasingly expressed the desire to make their work easier through digitaltechnologies.

To wrap up the three-year development system, we hold a paper presentation event aimed at letting employees reaffirm their roles and organize their medium- to long-term career prospects. We work to promote autonomous careerformation by having employees summarize the issues and work that they tackled during their first three years, alongwith their prospects from their fourth to tenth years.

Development of Next Generation of Management
We believe in the importance of expanding our human resource pool through planned development as well as experiencethrough work. Toward that end, we implement multiple selection-based programs (Middle Management Programs, Training todevelop the next generation of executive managers, Officers’ Coaching School, etc.) for specific target groups as a way to develop
the next generation of management. We also actively dispatch personnel to multiple external programs and, through training andseminars with next-generation management resources outside the company, work to equip employees with perspectives not
obtainable within our Company alone.

Officers’
Coaching School92

We launched the Officers’ Coaching School in 2014 as a venue for executive officers and the school’s students toinspire each other and consider their self-development. Each class consists of 8 to 10 junior and middle-management
employees. Executives serve as the head and deputy head of each class, which operates independently and issues areport once a year. Classes established based on functions such as mineral resource business, smelting and refining
business, materials business, research and development, equipment and technology, human resources, accounting,and sales select key themes for the Company every year and engage in activities with the goals of strengthening theability to think issues through, to learn together, and to put learning to practical use in the workplace.

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Head Office ACROSS

We hold ACROSS* once a month as an event to advance “communication activation,” one of the goals of our renewalof the Head Office. In ACROSS, employees provide overviews of their business, examples of DX initiatives, and othertopics to promote understanding of each other’s work and targets.
* Accelerate Co-creation Roundly Over the Sections in Sumitomo Metal Mining

Career Design Training, Career Design & Life Plan Training
To remain a company where employees can work with pride, motivation, and joy, we believe it is important that employees areable to autonomously envision their careers and continue working with spirit. Toward that end, beginning from employees’ second
year after joining the Company, we conduct career design training at the ages of 35, 43, 50, and 58. We have also set opportunities
for employees to clarify their future career goals and action plans through reviews of their careers while touching on age-specificcareer issues.

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Social Social

Diverse Human Resources / Development and Participation of Human Resources

JCO Study Center Training

Diverse Working Styles and Labor Productivity

We believe that we bear an obligation and responsibility to pass on lessons of the JCO criticality accident that must never be forgotten by Group employees. For this reason, we established the JCO Study Center in October 2010 as an experience-oriented facility where people can come into direct contact with the facts of the incident. Through materials, audio, video, and other media,
visitors can learn about topics including the accident’s direct causes and risk management at the time, to ensure that such an accident never occurs again. We are making efforts to have all Group employees undergo JCO Study Center training at least once, byincorporating it into all manner of training. As of the end of March 2023, 92% of our employees and 78% of employees of Group
companies have experienced the training.

Utilization of Human Resources (working style reform and the creation of workplaces where diverse human resources can play active roles)

We make efforts to reduce employee average annual working
hours to our target of 1,900 hours or lower, and report on
progress toward this target every month at executive officers’
Meetings. The recognition of diverse working styles (workfrom-home and flextime systems) matched to the job leads amore active involvement in work from employees and promotes reduced working hours and enhanced productivity. In
the Head Office District, we have introduced a flextime system with no core hours, achieving flexible working styles
grounded in the autonomy of employees. To promote thetaking of annual paid leave, we also engage in labor-management dialogue at all business sites, and study and carry out
related measures based on the situation at each site. Basedon the reduction of annual working hours achieved throughthese initiatives, since April 2021 we have unified the annual
scheduled working hours for all working styles to 1,920 hours.
In FY2022, annual total working hours were 1,933.3 hours(average for all employees) and the percentage of paid leave
taken was 87.6% (annual average for all employees). P.154

Working Style Reform

Prevention of Long Working Hours and Overwork

Approach

Our Company complies with the laws and regulations of countries and regions regarding long working hours and overwork. As an
initiative in Japan to prevent health disorders due to overwork, since 2003, before our working style reform initiatives, we havemade superiors aware of employees who have worked overtime for over 45 hours per month and conducted health guidance by
occupational physicians for employees who have worked overtime for over 80 hours per month. In working hours management,
since 2016 we have linked login and logoff time of PCs to our attendance management system to check the state of working hours.
When the discrepancy between working hours and PC login/log-off times exceeds a certain criterion, we check whether a labor situation exists. From the standpoint of compliance with overtime and holiday work in accordance with Article 36 of the Labor
Standards Act, we are building a mechanism that delivers email alerts about subordinates’ overtime hours to superiors, and are providing support for appropriate management in the workplace.

Human Rights Seminar
As stated in our Corporate Philosophy, we aim to be a forward-minded and vibrant company that recognizes the dignity and valueof people based on respect for all individuals. Setting December of every year as Human Rights Month, we undertake human rights
training throughout our Group. In the advancement of diversity, people’s unconscious assumptions, preconceptions, and stereotypes can create hindrances and lead to harassment. In FY2022, we conducted education on unconscious bias at workplaces, withthe aim of recognizing differences in people’s attributes, backgrounds, and experiences and creating workplace in which people
can inspire each other and grow—in other words, achieving diversity.
Time spent on employee education

P.153-154   Amount of investment in education

P.154

The purpose of the working style reform that our Group pursues goes beyond shortening working hours to enhance the growthand productivity of every employee, thereby efficiently advancing high-quality work in a limited time frame and creating newvalue. Restated, the purpose is “rebuilding the ability to work,” which we believe will lead to growth of the Group as a whole. We
announced the start of working style reform efforts in April 2017, and since then have continuously advanced a variety of initiatives.
In addition to strengthening management of appropriate working hours and reducing long working hours, we have created anenvironment that lets all employees demonstrate their abilities in work. We anticipate that employees will invest the time createdthrough working style reform in themselves, using it as an opportunity for personal growth.

 Average Annual Working Hours1 and Percentage of Paid
Leave Taken2(hours)
2,200
2,100
2,000

78.7
1,987.4

78.4

1,967.3

83.7

86.0

83.2

83.2

87.6

(%)
100
80

1,950.1

1,976.1

1,984.5

1,959.060

1,933.3

1,900

40

1,800

20

0
(FY)

2016

2017

2018

2019

2020

2021

2022

0

 Managers (left axis)    General employees (left axis)    Total (left axis)
Percentage of paid leave taken (right axis)
1. Average annual working hours = scheduled working hours (excluding leave, paid
leave, etc.) + overtime hours
2. Scope: Employees of Sumitomo Metal Mining Co., Ltd. during the year (excluding
limited-term employees who are specially hired employees)

Working Style Reform Initiatives
In our Group, particulars of work often differ by division and workplace, with the result that working style reform activities are generally undertaken on a per-workplace basis. Every year at every workplace, we create and carry out an action plan aimed at assessing and improving current conditions related to working styles.
Average annual working hours are steadily decreasing, and we have begun initiatives aimed at reducing the number of persons
who work long hours.

94

Commitment by top
management

Communication of messages within the Company

Assessment of current
conditions

Assessment of current conditions, formulation of workplace-specific action plans, etc.

New employment rules

Improvement of employment management systems, pursuit of flexible and efficient working styles, etc.

Advancement of new jobs

Review of ideals for meetings and ways of creating
meeting materials

Utilization of IT tools (in cooperation with the Information
Systems Department), reduction of labor, switch to RPA

Review of shift to paperless work and rules for using
emailWork inventorying, work improvements, ideals for humanresource development, etc.

Reform of awarenessTraining for supervisors and staff

Proper human resource
assignment

Review of approach to staff organization

Development of mechanisms for employment

Staggered working hours, flextime system, work-from-home system, half-day annual leave, hourly annual leave, half-day
compensatory leave, etc.

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Sustainability Report 2023

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Social Social

Diverse Human Resources / Development and Participation of Human Resources

Creation of Workplaces Where Diverse Human Resources Can Play Active Roles (initiatives and development of systems)

GRI 401-2

Support Matched to Employees’ Life Stages
Our Company offers support measures and systems matched to changes in life stages, such as joining the Company, marriage,
childbirth, childcare, nursing care, and reaching retirement age. We also provide consultation and opportunities for information
provision through training.

Initiatives

We conduct these seminars for employees in the Head Office District who have returned to work from parental leave, and for their superiors and other applicants, to build understanding of the aims and details of our
in-house parental leave-related systems. From FY2022, we have offered seminars prior to employees’ return towork to explain details of preparations for the return and for balancing work and child-rearing

Seminars on the parental leave system(from FY2019)

We conduct these seminars for employees who are expecting the birth of a child, as well as for their superiors
and, from FY2022, all managers. The seminars’ aim is to extend understanding of systems associated with revisions to the Act on Childcare and Caregiver Leave and to foster a supportive workplace culture. (All managers
are scheduled to attend the session by the end of FY2023.)

Individual informational sessions on theparental leave system and interviews to
confirm intent to take leave(from FY2022)

For employees who have provided notification of their own or a spouse’s pregnancy, childbirth, etc., we holdthese sessions in face-to-face or online format, attended by two or more people from the business site’shuman resources staff or from the Diversity Promotion Section of the Human Resources Department at the
Head OfficeInterviews before return to work

Before employees return to work, we conduct exchanges of information between the employees and theirsuperiors to ensure trouble-free preparations for returning to work, balancing work and child-rearing, andreadying systems in the workplace

Distribution of tablets

Development of an environment enabling access to Company information during parental leave Support matched to employees’ life stages

Support for balancing work and child-rearing
Systems available to women
Pregnancy

Systems available to men•A ccumulated annual leave (use of
hospital visits for prenatal exams)• S pecial absence; exemption fromovertime, holiday, and late-nightwork

Support for balancing work and nursing care
Work and leave systems• Flextime system• Short working hours• Work from home
• Accumulated annual leave• Half-day annual leave

Seminars on the parental leave system; portal site for balancing work andchild-rearing

ChildbirthChildbirth congratulatory gifts, family allowances

Leave
Return towork* Availability of systems may vary by business site

• Childbirth and child-rearing support leave with pay (up to 9 days)•P renatal and postpartum leave• Parental leave for childbirth• Parental leave•P arental leave•C hild-rearing hours (30 minutes,
2 times/day)• S hort working hours• S taggered working hours• F lextime system• Work from home
• E xemption from overtime andholiday work
• L eave of absence due to family
illness• Half-day annual leave, hourly
annual leave, accumulated
annual leave• Seminars on support systems forbalancing work and childcare• “Shining” bulletin board for
employees• Handbook of benefits• Hourly annual leave• Nursing care short-term leave withpay
• Leave of absence due to family
illness• Exemption from overtime and latenight work
• Nursing care leave

Economic support• Consolation payments for families requiring nursing care (up to ¥120,000/year)• Nursing care loan (up to ¥5 million) (relocation to nursing home, home expansion/renovation for nursing care, purchase of nursing care equipment, etc.)

Provision of information• Nursing care lecture meeting (1 time/year)• Seminars on nursing care system (2-day sessions held 2 times/year)• Seminars on nursing care system for all employees of age 40 and older• Handbook of benefits• “Shining” bulletin board for employees* Availability of systems may vary by business site

Consultation desks: Work-life Support Desk; personnel in charge of human resources at business sites; superiors; etc.
Voluntary administrative leave; Reemployment following resigning for personal reasons

Support related to illness and health management•M edical treatment consolation payments and administrative leave system for long-term leave of absence•H ealth management leave for complete medical checkups (up to 2 days/year); medical checkup expense coverage (age 50 and older)Support at the time of joining the Company

Support at the time of marriage•D ormitory, company housing, housing expense subsidies, housing asset formation• E mployee Stock Ownership Association, defined contribution pension plan, etc.

• Wedding congratulatory gift payment and marriage leave• Company housing rental; use of maiden name

Development of Support Systems for Balancing Work and Child-Rearing and Nursing CareGRI 401-3

By enhancing our support measures beyond statutory requirements to let employees balance work and child-rearing and nursing
care without worry, we are making efforts to create comfortable working environments. Our handbook on benefits summarizes
internal systems, including those for child-rearing and nursing care. We revise the handbook to accommodate changes in systems,
and make this information familiar to employees.
We further hold seminars on support systems for balancing work and child-rearing, aimed at employees and their supervisors
before and after return from parental leave; seminars on the parental leave system to aid managers’ understanding of systems associated with revision of the Act on Childcare and Caregiver Leave; and individual informational sessions on the parental leave system
and interviews to confirm intent to take leave to aid understanding of the leave system by employees preparing for childbirth in
the family.

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Main content

Seminars on support systems for balancing work and child-rearing(from FY2019)

Of 107 employees (91 men and 16 women) who were eli Status of Taking Parental Leave
gible to take parental leave in FY2022, 104 (87 men and 17(%)
women) did so. The percentage of eligible employees taking
120
parental leave was 97.2% (95.6% for men and 106.3% for100
97%
women). P.155
80
In support for balancing work and nursing care, we regularly conduct questionnaire surveys on nursing care-related
60
awareness, conditions, and needs within the Company, and40
30
27
use the findings to continuously strengthen support for mea17
16
20
sures. Our questionnaire survey in FY2015 uncovered problems in the workplace climate for employees who provide
0
2018
2019
2020
2021
2022
(FY)
nursing care, along with considerable anxiety among1
Use of parental leave  
Use of parental leave (male)
employees over nursing care in the future. In response, in
Use of parental leave (female)2  
Use of leave with pay for child-rearing (male)
FY2018 we launched a seminar on balancing work and nursFrom FY2022, the percentage of parental leave includes the percentage of leave withing care, and have continued this seminar from FY2019
pay for child-rearing (male)(including e-learning format) for all employees of age 40 and
The percentage of parental leave (female) in FY2022 includes those who gave birth in
FY2021 and took parental leave in FY2022, and thus exceeds 100%
older. As understanding and cooperation by superiors and1. Number of employees who took parental leave in FY2022 ÷ number of employees
others in the workplace are indispensable in balancing work
who submitted a notification of birth to the Company for birth by their spouse in
FY2022 x 100
and nursing care, through the seminars we will establish an
2. Number of employees who took parental leave in FY2022 ÷ number of employees
atmosphere that facilitates consultation with people in the
who gave birth in FY2022 x 100
workplace, and will explain necessary preparations and theCompany’s support systems for achieving that balance. Basedon needs uncovered in the FY2019 questionnaire, we have continuously offered lectures by experts on nursing care and seminars
on the Company’s nursing care system, in order to reform awareness concerning balancing work and nursing care and to make theCompany’s nursing care-related systems known to employees. From FY2023, too, we plan to advance new initiatives such as creating opportunities for employees to exchange information and ideas on balancing work and nursing care. In FY2022, 2 employees
took nursing care leave and 67 employees took nursing care short-term leave with pay. P.155

Work-life Support DeskIn April 2021, we established the Work-life Support Desk to respond to a wide range of requests for consultation from all Group
employees and to provide support for resolving issues. These issues span not only harassment and human rights matters but also
careers, human relations in the workplace, and balancing work with childcare and nursing care. In FY2022, the desk responded to
18 inquiries.

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97Social Social

Diverse Human Resources / Development and Participation of Human Resources

Diversity & Inclusion

Employee Awareness Surveys and Internal System Development
To achieve the goal of creating workplaces where diverse
human resources can play active roles, as set out in Vision for2030, we are undertaking reviews of our personnel-related
systems. We have selected items related to “Management bymanagers and superiors,” “Appeal of job,” and “Work environment” as KPIs, and have set the goal of improving thesescores. In results for FY2021, scores for all items improved
from the previous survey and the percentage of positive
responses increased as well. P.156
We had conducted our employee awareness survey* once
every three years, but from FY2023 will conduct the survey
every year and use it to monitor performance. We will use thesurvey scores to continue planning and advancing better
personnel-related measures for employees.
* Employee awareness survey

P.128

P
 ercentage of Positive Responses1 and Scores2 for Items
related to the Employee Awareness Survey(%)
80

3.47 3.55

60

55.8

3.56 3.56

3.38 3.45

3.23 3.36

64.5
51.6

57.6
50.2

53.2

49.6
42.6

40

20

0

Appeal ofmanagement measures

Appeal ofsuperiors

Appeal of job

Overall appeal of
workplace FY2019 (left axis)    FY2021 (left axis)    Average score
1. Percentage of positive responses: Calculated from total responses of “Very much so”
and “Somewhat so” among all response options (“Very much so,” “Somewhat so,”“Cannot say,” “Not so much,” and “Not at all”)
2. Average score: Calculated as the average value of responses, with “Very much so” as
5, “Somewhat so” as 4, “Cannot say” as 3, “Not so much” as 2, and “Not at all” as 1

 Status of Development of Main Internal Systems over the Past Three Years (development of environments that facilitate andencourage work)
FY2020
FY2021

Improvement of wages

Average for union members: ¥1,500

Nursing care short-term leave with pay

Relaxation of requirements for usage and units for taking leave

Extension of retirement age
Annual scheduled working hours
Flextime system
Internal reporting hotline

Extension of retirement age for general employees (age 65)
Consolidation (reduction) to 1,920 hours
Introduction of “no core time” (Head Office District)
Establishment of a new Work-life Support Desk

Special hourly leave with pay forchild-rearing
Health management leave

Relaxation of requirements for usage and units for taking leave

System for remote assignment awayfrom family
Miscellaneous expenses for transfers

Expansion of certification requirements, increase in allowances

Housing allowance

Expansion of targets for payment, increase in payment amount to employees who aresingleIncrease in hardship allowance
Review of accident consolation payments, establishment of evacuation and damaged
vehicle payments

Overseas worker allowance
Consolation payments
FY2022

ApproachOpen and Vibrant Organizational Climate* To activate the goodness of the organizational climate that was rooted in our Company, we have again put
this into words and communicated it to employees• Employees are able to convey their thoughts and insights without concern over differences among individuals, such as superior/subordinate relationships, senior/junior employee relationships, or gender• Employees welcome new ideas and challenges• Employees make what is right, not who is involved, their criteria for judgments
Assumption: Organizational policies, targets, regulations, and rules are shared.

Initiatives toward Gender Balance (women’s active engagement)

Elimination of age restrictions (when undergoing complete medical checkups)

Establishment of vehicle expense subsidy (up to ¥500,000)

GRI 202-1/404-2/405-1/405-2

To realize our Vision for 2030 to create workplaces where diverse human resources can play vibrant and active roles, we have set“number and percentage of female SMM managers” and “number and percentage of female SMM employees” as KPIs. In FY2022, thepercentage of female SMM managers was 2.9% (20 employees) and the percentage of female SMM employees was 12.9% (445employees), both figures having increased from the previous year. We have formulated an action plan based on the Act on the
Promotion of Women’s Active Engagement in Professional Life* and are working to achieve our goals. Furthermore, through various
measures such as proactive recruitment, appointment to a wide range of positions, and training of female leaders, we are making
efforts toward furthering the active engagement of women. P.156* Enacted in 2016 with the aim of realizing a society in which women can fully demonstrate their individuality and abilities, this law stipulates the responsibilities of the national government, local governments, and general business owners with regard to the promotion of women’s active engagement

Personnel evaluation
Telework system

Review of handling of mid-career hires and employees returning from parental leave
Restructuring of work styles at the Head Office District

Improvement of wages

Average for union members: about ¥4,800

Annual paid leave
Accumulated annual leave

Increase in number of days granted, elimination of expiration of leave
Increase in upper limit for accumulation, addition of usage requirements

Initiatives

Family allowance
Work-from-home allowance

Changes to eligible employees and allowance amounts
Payment according to number of days worked from home

Percentage of paid leave taken 80% or more

Diverse Working Styles for Older Employees

GRI 3-3/405-1

Our Corporate Philosophy calls for recognizing the dignity and value of people based on respect for all individuals. The SMM Group
Code of Conduct, which summarizes specific standards of conduct for officers and employees in achieving that respect for individuals, stipulates that we “accept diversity and respect the individuality and rights of people.” The Sumitomo Metal Mining Group
Policy on Human Rights declares that we will not allow discrimination, harassment, or bullying on the basis of race, religion, gender,
age, sexual orientation, disabilities, nationality, or other characteristics in employment and work scenarios. Viewing diverse humanresources and the development and participation of human resources as material issues, we aim to be “a company where all
employees can take a vibrant and active part” as our Vision for 2030.
Perspectives and ways of thinking differ by individual, and values and criteria for judgment change with the environment andthe times. For these reasons, it is important that we accept the differences among diverse members, accept one another, and work
together while respecting and making use of individuals’ characteristics. To do so, we must make continuous efforts as individuals
and organizations on a basis of mutual trust, thereby realizing diversity and inclusion, creating new wisdom, and becoming anorganization capable of advancing growth strategies.
In order for diverse members to work together with motivation, in addition to the development of working environments andsystems, since FY2017 we have worked to create an open and vibrant organizational climate* while fairly providing opportunities.
We believe that under an open and vibrant organizational climate, every individual will respect the backgrounds of others regardless of differences and will engage in competitive hard work together with open discussion and generation of ideas.

 Our Company’s Action Plan Based on the Act on the Promotion of Women’s Active Engagement in Professional Life
(period of plan: April 1, 2021 to March 31, 2024)
Number of female managers 20 or more
Enact measures to support balance according to life stage

GRI 404-2

Through FY2020, we offered continued employment for employees reaching the age of 60 in the form of re-employment. From
FY2021, however, we have changed the retirement age for general employees to 65, so that employees can remain in active roles
for a longer time. In FY2023, we revised our managerial track personnel system so that senior employees can continue working past
the retirement age of 65, up to age 70. By offering a variety of options, we are achieving diverse working styles. We have also developed career and life plan training targeting employees age 50 or older at age 50 and 58, as well as a support system for change ofcareer (with transfer support subsidies, re-employment support, etc.) to back up employees’ post-retirement lives.

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Social Social

Diverse Human Resources / Development and Participation of Human Resources Number and Percentage of Female Managers(People)
80

7.0

60

20

0
(FY)

2.9
2.0

1.2

1.5

1.5

9

11

11

14

2018

2019

2020

2021

20

2022

3.0

50

(People)
600

460
400

4

35

11.4

11.7

12.5

12.6

12.9

14.0

500

550
20.0

16.0

200

25

2024

(%)
8

6

5.0

40

Promotion of Employment for People with Disabilities Number and Percentage of Female Employees
(%)
30

20

10

2

2027

2030

(fiscal year-end (fiscal year-end (fiscal year-end
goal)
goal)
goal)

 Number of female managers (left axis)  
Percentage of female managers (right axis)
Scope: Sumitomo Metal Mining Co., Ltd. (including seconded employees)

0

0
(FY)

2018

2019

2020

2021

2022

2024

2027

2030

0

(fiscal year-end (fiscal year-end (fiscal year-end
goal)
goal)
goal)

 Number of female managers (left axis)  
 Number of female general employees in managerial track positions (left axis)
 Number of female general employees in core track positions (left axis)  
 Number of female limited-term employees (left axis)
 Number of female employees (left axis)  
Percentage of female employees (right axis)
Scope: Sumitomo Metal Mining Co., Ltd. (including seconded employees)

Fair Systems of Evaluation and Treatment
Based on the Sumitomo Metal Mining Group Policy on Ratios of Female-to-Male Base Salary and Total Compensation(FY2022)
Human Rights, we comply with laws and regulations concerning compensation, including the minimum wages estabBase salary
Total compensation2
lished by countries and regions. In Japan, we have entered
Female Male
Female Male
Employees1
into an agreement with the Federation of Sumitomo Metal
100 : 165
100 : 149
Mining Workers Unions on internal minimum wages thatexceed region- and industry-specific minimum wages set
Female Male
Female MaleManagerial
100 : 112
100 : 111
under the Minimum Wage Act, as we work to improve thepositions
treatment of employees. P.157
Female Male
Female MaleWe have also introduced an evaluation and compensation
General
100 : 132
100 : 115
employees
system free of distinctions or difference based on gender andage, with compensation determined by individuals’ roles and1. Scope: Non-limited-term employees of Sumitomo Metal Mining Co., Ltd. (including
achievements. The ratios of female-to-male compensation for
short-time workers)
non-limited-term employees in FY2022 were 100:165 for base
2. Total compensation includes base salary, overtime pay, allowances for housing,family, commuting, etc., and excludes payments to employees who resigned
salary and 100:149 for total compensation. We believe that
this difference between male and female stems from thefacts that the number of years of service is longer for male employees and the percentage of females in managerial positions islower. To eliminate the difference, we will improve our retention rate for female employees and raise the percentage of female managers to an appropriate level. P.156

Training for the Development of Female Leaders
As the number of female managerial track employees in our Company is relatively small, in addition to training in line with ourCompany-wide human resource development program, we identify female employees who are expected to play future roles as
leaders and send them to exchange meetings of nine companies in different industries. Our aim is for the employees to encounter
different corporate cultures, expand their horizons, and acquire the practical skills required of leaders by tackling issues together
with female employees of the same generation from other companies.

GRI 405-1

In addition to career recruitment, every year since FY2019 we Number and Percentage of Employees with Disabilities* overthe Past Five Years
have accepted students from special support schools near
our workplaces to take part in workplace experiences. By(People)(%)
deepening understanding of our workplaces and work
110
2.7
2.59
2.57
through the experience, we are increasing the number of stu2.56
105
2.6
2.50
dents who feel confident in joining our Company. To support
2.5
100
2.39
Statutory employment rate95
2.4
retention, we arrange meetings with human resource staff

2.3
90
one and three months after joining the company and every
84
85
2.2
six months thereafter to eliminate job-related anxieties and
79
2.1
80
77
problems and to offer lifestyle-related support as needed,
2.0
75
73
strengthening linkage with our employment support. Every
70
1.9
68
year since FY2020, we have offered internships for university
0
0
2019
2020
2021
2022
2023
(FY)
students with disabilities and actively recruited these stu Number of employees with disabilities (left axis)
dents at workplaces that can make use of their expertise andPercentage of employees with disabilities (right axis)
characteristics.
Data is as of June 1 for each fiscal year, covering employees of Sumitomo Metal
From the standpoint of undertaking reasonable considerMining Co., Ltd.
* The number of employees with disabilities is calculated according to methods preations, we install PATLITE lighting systems on all floors to
scribed in the relevant laws
enhance visual communication for deaf employees, make useof speech recognition software, hold in-house sign language
classes and workshops allowing non-disabled employees toexperience simulated disabilities, eliminate level differences inside facilities, and make improvements to restrooms. By acting under
the idea of normalization to create environments in which people with and without disabilities can work together, we are steadily
increasing our percentage of employees with disabilities. As of June 2023, our percentage of employees with disabilities was 2.59%,
which exceeds the statutory rate of 2.3%. P.157

Increase in Foreign Employees

GRI 405-1

Foreign employees in managerial track positions in our Company numbered 14 at the end of FY2022, an increase of 2 from the previous year. By content of work, these employees are divided roughly equally between technical occupations (research and development, engineering, manufacturing divisions, etc.) and clerical occupations (business divisions, corporate divisions, etc.), and are
active in a range of workplaces and job categories.
In FY2022, we conducted a questionnaire to assess issues faced by foreign employees, along with interviews with those whowanted them, feedback to superiors, and hearings on issues. By holding round-table discussions with foreign employees in our
Company and communicating the content through our Group in-house bulletins, we make all employees aware of the activities ofour global human resources and internally raise awareness of the importance of creating workplace environments in which everyone can play active roles. In FY2023, we will study measures to address the issues identified in FY2022 and will undertake initiatives
to expand the number of foreign employees in managerial track positions.

LGBT-related Initiatives

GRI 405-1

Our Sumitomo Metal Mining Group Policy on Human Rights prohibits harassment and discriminatory treatment on the basis of sexual orientation. From FY2018 to 2020, we held workshops aimed at deepening understanding of LGBT issues. In FY2020, we begantraining for executive officers and managers aimed at promoting understanding of changes in the external environment and ofLGBT issues, and have since been gradually expanding the target groups for the training.

Training for Female Core Track Employees
From FY2019, we have selected female core track employees to participate in our Career Coaching School, which is aimed at thecreation of an autonomous career mindset and the enhancement of basic business capabilities. From FY2022, we have been
expanding the pool of eligible employees and have held the training under two categories: “Career design training for employees
in their 30s” and “Business basics enhancement training.”

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Diverse Human Resources / Development and Participation of Human Resources

Maintaining and Improving Employees’ Health

GRI 3-3/403-6

From an early stage, our Group has made securing the safety and health of officers and employees a priority from the standpoint ofoccupational health and safety. To ensure that all employees in our Group can work with greater health and motivation, we areundertaking and enhancing more effective maintenance and promotion measures for mental and physical health, in accordancewith our health and productivity management policy. In March 2023, we received certification as a Health & Productivity
Outstanding Organization 2023 (large enterprise category) under the Certified Health & Productivity Management Outstanding
Organizations Recognition Program of the Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi (Japan HealthCouncil).

Sumitomo Metal Mining Group Health and Productivity Management Policy

Health and Productivity Management Plan Employee Health Promotion Roadmap
Initiative stage

First Stage
Improvement
phase foremployees
facing highhealth risks(Target: Highrisk employees)

The Sumitomo Metal Mining Group recognizes that the ability of officers and employees to exert their capabilities to the fullest in good physical and mental health is an important foundation of our management.
Accordingly, we promote efforts for the maintenance and improvement of health for every individual.
Second Stage

Sumitomo Metal Mining Group Health and Productivity Promotion Structure

GRI 403-6

Health risk
reduction andhealth promotion phase(Target: All
employees)

Highest responsible party(President)

KPIs for health issues
I. Risk of onset oflifestyle-relateddiseases
Reduction of percentage of men at medium
or greater risk (requiring
checkup, physician
consultation)

Percentage
at mediumor greaterrisk

II. Risk from smoking
Halving of smoking rate Smoking
for employees of age 40 rate
and older

Each business site
Collaborate

Human Resources Department
Safety & Environment Control Department

Sumitomo Metal Mining Workers Unions

FY2022 results

FY2023targets

FY2024targets

FY2027 targets(Final year of 2024 3-YearBusiness Plan)

FY2030 targets(Final year of 2027 3-YearBusiness Plan)

29.0%

29.6%

26.0%

25.0%

20.0%

18.0%

25.0%

23.9%

21.0%

20.0%

16.0%

12.5%

III. Re-commitment tomental healthmeasures(1) Reduction of number of workers taking
long-term absence of 1
month or longer(2) Reduction of total
number of days ofabsence for workers
taking long-term
absence

Number of
employees

Number of
days

1,688

IV. Risk of obesity
Reduction of obesity
rate (BMI over 25) for
employees of age 40
and older

Obesity rate
(male)

39.0%

38.0%

38.0%

37.0%

28.0%

26.0%

Obesity rate
(female)

23.0%

23.4%

22.5%

22.0%

19.0%

18.0%

12

—

Promotion of health and productivity management

Head of the site
Department(s) in charge of humanresources, safety and the environment
at the site2021 3-Year Business Plan

FY2021
results

Executive officer in charge of health andproductivity management(Executive officer in charge of the Human
Resources Department)
Sumitomo Metal Mining Health
Insurance Society

GRI 403-6

Percentage of employees receiving regular health checkups(1) R eduction of number of workers taking long-term absence of 1 month or longer(2) R eduction of total number of days of absence for workers taking long-term absence(3) E xpansion of training and management of training attendance records, situational
assessment, and confirmation of individual actions(1) Construction of healthand productivity management policy, regulations,and promotion frame(1) Continuation of Health &work; in-house education
Productivity Outstanding
and awareness-raising
Organization certification(2) Acquisition of Health &(2) Deployment of support
Productivity Outstanding
systemOrganization certification(3) Company-wide introduction of health management support system(1) Acquisition of “White 500”
Health & Productivity
Outstanding
Continuation of Health &Organization certification
Productivity Stock Selection(2) A cquisition of Health &Productivity Stock
Selection

Continuation of 100% checkup percentage

100%

Occupational physicians
Labor union at the site
Occupational Health and Safety
Committee at the site
Occupational physician at the site

Addressing Mental Health CareGRI 403-6

In 2007, we issued our “In-House Guidelines on the Prevention of Health Disorders Due to Overwork and on Mental Health Care.” Wetake action to prevent overwork from an early stage onward, and promote four types of mental health care: self-care, care by line
management, care by staff, and care by external organizations. To support early return to the workplace, we are also developing
systems for leave from work and trial return to work. P.158
 Percentage of Employees Taking Leave due to Mental Health Disorders
FY
Percentage of employees
taking leave*

2018

0.51%

2019

0.45%

2020

2021

0.40%

2022

0.37%

0.43%

* Percentage of employees taking leave: Total number of days of leave taken ÷ number of scheduled working days x number of employees at end of fiscal year x 100
Scope: Employees of Sumitomo Metal Mining Co., Ltd.

Utilization of Stress Checks
To make effective use of statutory stress check systems, we conduct stress checks for all employees every year in accordance with
our “Regulations for Promotion of the Stress Check System.” We also carry out workplace analyses and workplace environment
improvements for which efforts are mandated, and report the results to management.
We developed a stress check system beginning in 2008, before systems were made mandatory in 2015. As the importance of thechecks are well known, the rate of employees undergoing checks has remained very high.

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Diverse Human Resources / Development and Participation of Human Resources

Based on results of the checks, we study and implement
initiatives to improve the motivation of employees (i.e.,
increase the health and well-being of employees). Stresschecks are a tool for evaluating employees’ psychologicalload and stress factors. The data is kept anonymous and confidential by outsourced companies. To an extent that does
not specify individuals, we assess and analyze trends andissues in departments, workplaces, and employee attributes,
and feed the results back to organizations so that effective
initiatives can be carried out at each business site. Employees
identified in the checks as having high stress receive follow-up email communication from physicians regarding early
response, checkups by specialists, and early recovery (shortening of the leave period). Upon request from individuals
concerned, the Company also provides individual engagement and support.

Illness Prevention and Health Promotion InitiativesP ercentage of Employees Receiving Stress Checks andPercentage of Employees with High Stress
(%)
20

97.7

96.1

11.8
10.2

12.0
11.0

94.7

95.4

11.3

11.8
9.8

96.8

15

(%)
100

75

10

8.7

10.1

5

50

25

0
(FY)

2018

2019

2020

2021

2022

GRI 403-6

In cooperation with the Sumitomo Metal Mining Health Insurance Society, we are making initiatives for illness prevention andhealth promotion for our employees and their family members (dependents). To prevent lifestyle-related diseases, we promote theimplementation of specific health checkups and specified health guidance, and encourage those at particularly high risk of serious
illnesses to undergo checkups. We also subsidize all or part of the costs of various medical examinations, comprehensive healthcheckup system (Ningen Dock), and complete brain checkups. When undergoing complete medical checkups, employees can takehealth management leave (up to two days per year).
Furthermore, to promote smoking cessation, we have reduced the number of smoking areas and offer an online smoking cessation program for those who wish to quit. About 70% of participants in the smoking cessation program have successfully quit
smoking. P.158
Main Projects for Illness Prevention and Health Promotion

0• Specified health checkups and specific health guidance for the prevention and remediation of metabolic syndrome• Comprehensive health checkup system (Ningen Dock), colon cancer screening, abdominal ultrasound screening, gastric X-ray
screening, dental checkup• “Body Report Card” to encourage checkups for employees at high risk of worsening of lifestyle-related diseases• Online smoking cessation program• Intermediary sales of household medicines Percentage of employees with high stress (left axis)  
 Percentage of employees with high stress, overall average for all companies (leftaxis)
Percentage of employees receiving stress checks (right axis)
Scope: Employees of Sumitomo Metal Mining Co., Ltd.

 Initiatives for mental health care
• Occupational Health and Safety Committees (formulation, implementation, evaluation, and deliberation concerning plans)• Labor-management committees (surveys and study)(%)
30

Mental health promotion plans
Self-care
Prevention,
indications

Onset,
recurrence,
return to work

 Smoking Rate and Target

Care by line management

Care by in-house staff(occupational physicians)

Care by external organizations(EAP) Follow-up based on resultsof stress checkups
 Counseling (online, face-toface, or telephone counseling for employees and theirfamilies) Consultation and counseling
by EAP staff (physicians, clinical psychologists, etc.)

 Statutory stress checks Self-care training
 EAP consultation desk In-house consultation desk
 Work-life Support Desk Approach toward employeeswith high stress indicated bystress checks Training for care by line
management Assessment and improvement of workplaceenvironment Awareness of and response
to unwell employeesH ealth awareness-raising
activities
H ealth consultations withoccupational physicians
C onsultation and guidanceby occupational physicians
for employees working longhours

 Leave system Assessment and improvement of workplaceenvironment Support for return to work Trial return to work systemR egular consultations withoccupational physicians S upport for return to workC onsultation with occupational physicians whenreturning to work

28.9

26.9

25.3 24.8

60.6
23.9

Personal information is handled with due care in all of the initiatives

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60

40
30

12.5

10

0
(FY)

2,200

2018 2019 2020 2021 2022 2030

TargetScope: Employees of Sumitomo Metal Mining Co., Ltd.,age 40 or older (results of specific health checkup
interview)• Training for personnel in charge of human resource• Support for return to work
• Training and assignment of occupational counselors

0
(FY)

2,167

2,131

80

2,047

39.2 38.0
36.9 37.2 38.7
22.8 22.3 23.6 22.1 23.4

(%)
100

2,256
50.0

2,000

60

1,890
26.0

1,800

20
10

100

56.9 58.9 58.0 58.0

50

20

 Percentage and Number of Employees
Receiving Health Checkups(People)
2,400

(%)
70

Care by staff, line management, and cross-sectional organizations• Promotion of participation in training and education• Reduction of long working hours and notification of consultations
with occupational physicians• Management of leave periodP ercentage of Employees with Abnormal
Findings1, Obesity Rate2, and Targets

18.0

1,600

2018 2019 2020 2021 2022 2030

0
(FY)

TargetObesity rate (male)  
Obesity rate (female)
Percentage of employees with abnormal findings
1. Scope: Insured persons of the Sumitomo Metal
Mining Health Insurance Society
2. Scope: Employees of Sumitomo Metal Mining Co.,
Ltd., age 40 or older

27.4

28

24.4

27.3

27.5

40

20

2018

2019

2020

2021

2022

0

N
 umber of employees receiving comprehensive
health checkup system (Ningen Dock)1 (left axis)
Percentage of employees receiving comprehensive
health checkup system (Ningen Dock) (right axis)
Percentage of employees receiving regular healthcheckups2 (right axis)
1. Scope: Insured persons of the Sumitomo Metal
Mining Health Insurance Society who are 18 years old
or older2. Scope: Employees of Sumitomo Metal Mining Co.,Ltd.

New Initiatives in FY2022• Complete brain checkups
For insured persons who are of age 40 or older and covered under the health insurance society, we have begun checkups forearly detection of brain-related disorders. About 140 employees underwent checkups in FY2022.
• The personal health portal site “My Health Web”
Employees can view incentive points, health information, health checkup results, medical expenses statements, health advice,and other information on this site to enhance their health awareness and better manage their health. In FY2022, we held awalking event in which about 500 participants competed on number of steps walked, based on measurements by smartphone.
• HPV virus checks
In FY2022 screenings for human papillomavirus (HPV), a potential cause of cervical cancer, about 120 insured persons (women)(80% of available screening openings) covered by the health insurance society made use of the screenings.

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Social Social

Diverse Human Resources / Development and Participation of Human Resources

Commendation for Achievements in Security, Occupational Health and Safety, and Environmental Preservation

New Initiatives Planned for FY2023• Health seminars
We plan to hold health seminars four times a year on themes including diet, women’s health, and combating cancer.
• Genome analysis
Investigating one’s own genetic information to learn about innate risks such as disease susceptibilities aids in the prevention ofdisorders.

Long-Term Incentives and Rewards System for Employees

GRI 401-2

Details
Retirement Allowance
Under the Company’s retirement benefits system, our defined benefit pension plan, defined contribution pension plan, and retirement lump sum plan are wholly or partially applied at all Group companies. Through these, we are responding to the diversificationof lifestyles later in life and changes in forms of employment, while providing peace of mind and stability in post-retirement life. Inline with the revision of our managerial track personnel system in FY2023, we have introduced a point-based retirement allowance
plan for managerial track employees, based on duties and years of service. We also abolished the resignation payment rate thatapplied to resignation for personal reasons, in order to appropriately return employees’ degree of contribution to the Company tothose employees. The result is a system that addresses the mobility of human resources while assuring the ability for employees toplay active roles in the Company for a long time.

Commendations in FY2022• Excellent Employees: Harima Refinery (27 people), Sumiko Techno-Research Co., Ltd. (14 people)• Long-term Zero Accidents: Ichikawa Research Center, Materials Laboratories, Ome District Division

Employee Stock Ownership Association
The Employee Stock Ownership Association was launched in 1982 to assist employees with long-term asset formation. With theCompany and Group company employees (including non-regular employees) as members, the association contributes funds fromsalaries and bonuses for the purpose of purchasing shares of the Company. The incentive from the Company is 12% of the contribution, with dividends reinvested as members’ stock purchase funds. As of March 1, 2023, the membership rate is 36.0%.

Invention Rewards
The Company has established “Regulations for the Management of Patents, etc.” conforming to the Patent Act, and pays bonuses at
the time of patent application and for results for inventions made by employees in their work. No upper limit is set on the resultsbased amount of bonus paid for inventions that contribute to business, which enhances employees’ motivation to create valuable
inventions. P.139-140

Commendations for Long Service

Labor-Management Relations (freedom of association and collective bargaining)

Through certificates of merit and supplementary awards, we commend employees who have worked diligently for many years andwho are recognized as models for others to follow.

Basic ApproachYears of service

Supplementary award

10 years

2-day leave and ¥50,000 in travel vouchers

20 years

3-day leave and ¥100,000 in travel vouchers

30 years

5-day leave and ¥400,000 in travel vouchers

40 years

3-day leave and ¥50,000 in travel vouchers or 5-day leave

President’s (General Manager of Division’s) Commendation for Achievement and President’s Letter of Appreciation
To commend efforts and achievements in line with the scale and results of outstanding contributions to the Company througheveryday work, once per year the Company presents certificates of merit and supplementary awards or letters of appreciation fromthe president or from general managers of divisions to individuals, groups, or workplaces.
Commendations in FY2022• President’s Commendation
Finance & Accounting Department: 30 people; Mineral Resources Division: 32 people; Non-Ferrous Metals Division: 31 people;
Battery Materials Division: 606 people• President’s Letter of Appreciation
Shisaka Smelting Co., Ltd.: 67 people; Ohkuchi Materials Co., Ltd. and Niihama Materials Co., Ltd.: 149 people

106

Once per year, the Company presents certificates of merit to individuals or workplaces that have demonstrated significant achievements in security, occupational health and safety, and environmental preservation and that are recognized as models for others.

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Sustainability Report 2023

GRI 2-30/402-1/407-1/G4-MM4

In the Sumitomo Metal Mining Group Policy on Human Rights and the SMM Group Code of Conduct, we stipulate respect for thebasic rights of employees as indicated in the International Bill of Human Rights and the International Labour Organization (ILO)
Declaration on Fundamental Principles and Rights at Work.

Dialogue between Labor and Management (Japan)
The Company and Group companies in Japan have built solid labor-management relations over the years and engage in trouble-free discussions. The collective agreements concluded between the Company and the Federation of Sumitomo Metal Mining
Workers Unions guarantee that labor unions have basic labor rights, including freedom of association and workers’ right to collective bargaining. At unionized sites of our branch offices and domestic Group companies, most unions are active under theFederation of Sumitomo Metal Mining Workers Unions. In Japan, based on union shop agreements, all general employees except
managers are eligible to join. As of March 31, 2023, labor union membership was 60.2% in Japan and 58.8% for the entire Group in
Japan and overseas. P.158
In order for the Company and labor unions to respect each other’s positions and build positive labor-management relations
based on trust, the Company holds labor-management council meetings, labor-management discussions, and other meetings withlabor unions and employee representative organizations at all business sites at least once a month, and set regular opportunities to
explain management conditions and take in opinions and requests from employees. In response to requests regarding improvements to occupational health and safety and working environments, we enact necessary improvement measures after confirming
situations. We also hold a Central Labor-Management meeting at least once a year as meetings between the Company’s management team and the executives of labor unions under the Federation of Sumitomo Metal Mining Workers Unions.
From February to March every year, the Company and the Federation of Sumitomo Metal Mining Workers Unions negotiate
working conditions including wages and lump-sum payments for the following fiscal year. In March 2022, labor and management
jointly confirmed that “all employees will work as one toward achievement of the shared annual targets of labor and management,
and, with labor unions also powerfully backing established goals and measures to achieve them, will foster a new culture of sharing
in the joy of that achievement under the 2021 3-Year Business Plan.” Setting the three years from FY2022 as the target period andsetting all Group business sites in Japan (directly controlled business sites, domestic subsidiaries, and domestic Group companies
with labor unions under the Federation of Sumitomo Metal Mining Workers Unions) + domestic contractors as the scope of initiatives, we are undertaking initiatives to reduce repetitive accidents. As a result, we successfully met some of our targets in FY2022.

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

107Social Social

Diverse Human Resources / Development and Participation of Human Resources

We have also established individual Labor-Management Advisory Committees for specific themes such as human resource systems, wages, shorter working hours, benefits, and occupational diseases. In Labor-Management Advisory Committees, labor andmanagement together investigate, examine, and solve issues under themes on which both sides have reached consensus. The
results of the committees’ examinations are reported to representatives of labor and management.
Content of Discussions with the Federation of Sumitomo Metal Mining Workers Unions (initiatives in FY2021-2022)• Revision of the managerial track personnel system, review of wage levels, review of the family allowance system, payment of
cost-of-living allowances• System for remote assignment away from family (relaxation of requirements, increase in allowance), housing-related systems(relaxation of requirements, increase in allowance, decision on new dormitory maintenance fees)• Measures to reduce relocation burdens (vehicle expense subsidies)

Dialogue between Labor and Management (overseas)
Among our overseas consolidated subsidiary companies are three that have labor unions. As of March 31, 2023, the labor union
membership at these subsidiaries was 54.3%. Overseas, we assess the state of unionization through questionnaires, and trackon-the-ground labor-management conditions and engage in exchanges of ideas through seconded employees assigned by theCompany to overseas posts. On issues of importance to labor and management, we conduct discussions by both sides and reflect
the opinions of both in reviews of measures and the formulation of new systems, in accordance with the laws and regulations of
relevant countries and regions. As a result of such efforts, in FY2022 there were no reports of cases of child labor or forced labor,
serious infringements on freedom of association, or plant closures due to causes such as strikes in our Group, either domestically oroverseas.

Notification of Reassignment, Secondment, and Transfer in Work
The collective agreement we have concluded with the Federation of Sumitomo Metal Mining Workers Unions stipulates that whenemployees are reassigned, seconded, or transferred in large numbers for reasons of business, the Company will discuss basic matters with the labor union. The agreement also stipulates that when employees are reassigned, seconded, or transferred, theCompany will promptly notify the individuals concerned and the labor union regarding the destination.

Labor-Management Agreements to Improve the Level of Occupational Health and Safety

GRI 403-4

Collective agreements concluded between the Company and the Federation of Sumitomo Metal Mining Workers Unions stipulate
the assurance of occupational health and safety, the establishment of Occupational Health and Safety Committees, education,
training, health checkups, and other matters. Through cooperation between management and labor, we are working to improve
the level of occupational health and safety. Occupational Health and Safety Committees* formulate annual plans for occupational
health and safety activities, check progress under the plans, examine measures to prevent occupational accidents and their recurrence, and share information on the use of health checkups, with the goal of creating an environment for working with safety andgood health.
* Occupational Health and Safety Committees

108

SUMITOMO METAL MINING CO., LTD.

P.82

Sustainability Report 2023

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

109Social Social

Co-Existence and Mutual Prosperity with Local Communities

Vision for 2030

Medium-Term Targets and Progress

GRI 3-3

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.

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

FY2022 Results

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	Participate in local communities through dialogue and collaboration• Accurately identify local issues through dialogues with local communities, and execute measures

Approach and Policy

GRI 3-3



GRI 3-3

 Promotion Structure
Sustainability Committee
President

Chair:
General Manager of General Affairs Dept.
Members:
Personnel in charge of each department

Collaborate
and cooperate
Check progress
on KPIs

Department in charge(business division, etc.)
Local Communities

Business sites (plants, mines, Group companies, etc.)
Personnel in charge of general affairs

110

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

Communicate
and collaborate

Local residents
Governmental
agencies
NGOs and NPOs

Business sites• Implemented the existing planroughly on schedule despite theimpact of the COVID-19 pandemic,
including activities such as cleaning
coastlines and areas around plants,
supporting events, planting trees, collecting used books, used stamps, andPET bottle caps, and conducting blood
donationsCompany-wide• Conducted a survey based on the
Company Employee Social
Participation Questionnaire survey toincrease the number of programs thatcan be provided in the Head Officeregion and other sites (support forpeople tackling dementia, sponsorshipfor holding boccia tournaments, etc.)• Planned collaboration to be implemented together with the Minato City
Council of Social Welfare, organizations
that participate in social contribution
forums, the Japan Philanthropic
Association, and the NEC Pro Bono
Initiative

Business sites• Continue implementing FY2022
initiatives• Identify examples of initiatives at eachbusiness site that could be implemented anywhere and implement
these at new locations as appropriate
Company-wide• Establish the Employee Volunteer Pro
Bono Support System (tentative name)• Have employees participate in regional
promotion initiatives that support volunteer activities and incorporate theiropinions• Carry out promotional activities thatencourage employees to sign up to
the Volunteer Pro Bono Support
System• Showcase at least one new programeach month• Build frameworks for the nationwide
development and continuous
improvement of programs (implementation organizations that include external experts)

Action Plan

Corporate Citizenship
Subcommittee• Establish mechanisms for identifying
issues and expectations through dialogues with local communities• Identify baseline values for local community contribution levels at all sites inJapan (17 regions), specify expected
contributions and contribution levelsby the end of FY2030, and incorporate
them in each measure• Ascertain the achievement status ofcommunity contribution levels at allsites in Japan compared to the baseline values and clarify issues to beaddressed in the future
Items or targets to be implemented
during the 2024 3-Year Business Plan
• Manage progress of all sites in Japan
with regard to issues and expectations
through dialogues with local communities and incorporate into measures,
including any subsequent changes• Run trial operation of mechanisms for
identifying issues and expectations
through dialogues with local communities at model business sites (FY2022)• Operate mechanisms as necessary at
all sites in Japan to identify baseline
values for community contribution
levels, specify expected contributions
and contribution levels by the end of
FY2030, and incorporate them in eachmeasure• Operate mechanisms as necessary at
all sites in Japan, ascertain contribution levels compared to baseline values, identify expected contributions
and any changes in level by the end of
FY2030, and revise and adapt eachmeasure as necessary• Support social contribution activities
of employees and develop employee
participation programs at all sites toimprove employee satisfaction andmotivation to contribute to society• Ascertain effects of employee participation programs (number of participants and employee satisfaction) andmanage progress• Improve employee participation
programs• Trial a program at Head Office thatincorporates the findings of the
FY2021 Company Employee Social
Participation Questionnaire survey
conducted in the Head Office (FY2022)• Conduct a questionnaire survey at themain sites and offer the program trialed at Head Office all sites withmodifications• Ascertain baseline values for the numbers of employees participating andsatisfaction and improve programs• Conduct the Company Employee
Social Participation Questionnaire survey at the main sites at the end of
FY2024 and the end of FY2027, ascertain satisfaction and needs, andimprove programs

KPI 	1. Support the local community via employee participation• Implement employee participation programs (from 2023)
Achievement
Criteria

We maintain dialogue with local communities and collaborate with them in order to understand the issues and expectations ineach region, and then use this understanding to implement social contribution activities in the areas in which we do business.
These initiatives are carried out in coordination with the General Affairs Department, which is the secretariat of the Corporate
Citizenship Subcommittee. The personnel responsible for general affairs at each business site gather for regular exchanges of opinions, held four times a year, during which they share information on the social contribution activities being conducted in eachregion. We also verify the effects of our business and social contribution activities through dialogue with governmental agencies
and local communities. Any complaints or grievances are acknowledged and responded to by business sites and we strive to shareand understand the details so that improvements can be made.

Action Plan

Promotion StructureOme District follow-up• Hold workshops through the OmeDistrict Social Contribution Promotion
Committee and develop new social
contribution activities based on ideas
generated• Break down a vision of the OmeDistrict in 2030
• Hold a sponsored boccia tournament
at the Sumitomo Metal Mining Arena
Ome in collaboration with government agencies and the NEC Pro Bono
Initiative as an opportunity to contribute to exchange in the community• Continue to hold collaborative meetings with local stakeholders
Company-wide• Prepare for the implementation of thesurvey assessing the degree of social
contribution to the regions in which
we do business (regional dialogue
model) at other sites

Achievement Criteria

Development activities, particularly the development of mining or smelting and refining projects, canhave a considerable impact on the lives of local residents, including forcing relocations. We think it isimportant that we engage with communities in the areas in which we do business through dialogue tofind out what issues they are facing and to see how we can contribute to solving these issues. Based on
this, we will vitalize regional economies, including by hiring and procuring locally in accordance withneeds, and continue to support areas that have been affected by major natural disasters such as earthquakes and typhoons.

Ome model project• Collaborated with the Tama University
Research Institute on the Localized
Contribution Survey using the OmeDistrict Division as a model businesssite• Held mixed workshops for employees
and external stakeholders to raiseawareness regarding social contribution among employees• The Ome District Social Contribution
Promotion Committee was establishedby seven employees, most of whom
participated in the above workshops• Held regular meetings for sharing
ways to collaborate with external
stakeholders to solve community
issues (starting with the Ome City andHamura City Councils of Social Welfare)

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Sustainability Report 2023

111

Social Social

Co-Existence and Mutual Prosperity with Local Communities

FY2022 Results

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	2. Hire and procure locally• Continually implement and assess of performance

Action Plan

• Assess hiring and procurement status
at the main sites and disclose theinformation on the company website• Assess hiring and procurement status
at the main sites and disclose theinformation on the company website• Assess hiring and procurement status
at the main sites and collect data

• Assess hiring and procurement status
at the main sites and collect data

KPI 	3. Support for nurturing of the next generation
1) Implement programs to nurture the next generation in collaboration with government, local bodies, NPOs, etc. (one or more times/year)• Provide support for nurturing of thenext generation in line with the
expected content and level of contribution as assessed through mechanisms for regular dialogue with local
communities• Solicit assessments of the above activities from local communities• Provide support for nurturing of thenext generation in line with the
expected content and level of contribution as assessed through mechanisms for regular dialogue with local
communities• Solicit assessments of the above activities from local communities• Provide support for nurturing of thenext generation in line with the
expected content and level of contribution as assessed through mechanisms for regular dialogue with local
communities• Solicit assessments of the above activities from local communities• Provide support for nurturing of thenext generation in line with the
expected content and level of contribution as assessed through mechanisms for regular dialogue with local
communities• Solicit assessments of the above activities from local communities

Sustainability Report 2023

• Start provision from FY2023• Continue to work graduates in positions that contribute to the local community and raise and consolidate
awareness of the purpose and resultsof the scholarship program at each of
the qualifying universities
Items or targets to be implemented
during the 2024 3-Year Business Plan
• Work some of the first students toreceive scholarships in positions that
contribute to their local communities
after graduation in March 2027

• Prepare application guidelines andselect qualifying universities for applications (June 2022)• Finalize funding scheme (September2022)• First application for scholarship students (with funding in March 2023)• Establish opportunities to communicate the purpose of the scholarships,
the philosophy of SMM, and the career
paths of graduates to university faculty
members and scholarship recipients(Plan to provide from the 2024 3-YearBusiness Plan for scholarship
recipients)

Business sites• Continue implementing FY2022
initiatives• In the second round of workshops
implemented by the Corporate
Citizenship Subcommittee, consider abreakdown of the ideal vision for eachbusiness site based on four KPI
Company-wide• Support organizations that participate
in social contribution forums• Support organizations collaboratingwith employee participation programs• Provide support for people with disabilities and the elderly that matches
the expected content and contribution
levels as assessed through mechanisms for regular dialogue with local
communities• Receive recognition from local communities for these activities• Provide support for people with disabilities and the elderly that matches
the expected content and contribution
levels as assessed through mechanisms for regular dialogue with local
communities• Receive recognition from local communities for these activities• Provide support for people with disabilities and the elderly that matches
the expected content and level of contribution as assessed through mechanisms for regular dialogue with local
communities• Share information on methods of support and know-how via the person in
charge of general affairs at sites at theregular Corporate Citizenship
Subcommittee meetings• Publish achievements of activities
internally and externally• Provide support for people with disabilities and the elderly that matches
the expected content and level of contribution as assessed through mechanisms for regular dialogue with local
communities• Share information on methods of support and know-how via the person in
charge of general affairs at sites at theregular Corporate Citizenship
Subcommittee meetings• Publish achievements of activities
internally and externally• Provide timely local support in theevent of a large-scale disaster (earthquake, typhoon, etc.)• Continue support for people affectedby disasters as necessary• Provide timely local support in theevent of a large-scale disaster (earthquake, typhoon, etc.)• Continue support for people affectedby disasters as necessary• Conclude collaboration agreementswith local governments and otherorganizations at major business sites• Provide timely support, including
donations, in large-scale disasters• Engage in community disaster prevention activities during normal times(participate in drills, lend facilities, etc.)• Provide timely support for people
affected by large-scale disasters overseas (major disasters, wars, etc.) in collaboration with business divisions• Provide timely support, including
donations, in large-scale disasters• Consider local disaster prevention
agreements (lend facilities, etc.)• Provide timely support for people
affected by large-scale disasters overseas (major disasters, wars, etc.) in collaboration with business divisions

KPI 	5. Support during and after disasters• Support regions affected by large-scale disasters• Held drills in cooperation with regional
authorities in preparation for a heavy
rainfall disaster (Hishikari)• Built a stock of emergency meals andother emergency supplies that can behanded out to the local community(Ichikawa Research Center)• Cooperated with volunteer fire company activities, registered as a corporate member, and dispatchedemployees when needed (Sumiko
Energy Materials Co., Ltd.)• Sold special goods produced in Naraha
Town inhouse (Head Office)• Donated to the Japanese Red Cross
Society (Hyuga Smelting Co., Ltd.)• Continued to donate to scholarshipfunds for children who were orphanedby the Great East Japan Earthquake(Head Office)• Held Tohoku Reconstruction Fair:
Consuming Foods from Disaster-Hit
Areas (Head Office)• Supported areas affected by the earthquake in Turkey and Syria (Head Office)• Sponsored NPOs supporting evacuees
from Ukraine (Head Office)Business sites• Continue implementing FY2022
initiatives• In the second round of workshops
implemented by the Corporate
Citizenship Subcommittee, consider abreakdown of the vision for each business site based on four KPI
Company-wide• Respond appropriately when disasters
occur in Japan or overseas• Support the training of employees asvolunteer responders
Head Office• Prepare to take in people who areunable to return home during a disaster in the area around Shinbashi
StationAction Plan

SUMITOMO METAL MINING CO., LTD.

Action Plan

112

Scholarships for regional contributionsin Japan• Applications for JEES-SMM Local
Contribution Scholarships to be
accepted from May 2023
In the first year, scholarships will beawarded to 20 students who intend tocontribute to four regions in which wehave directly-controlled business sites• Develop programs for raising theeffectiveness of the system’s goals,
support activities that teach students
about regional contribution, andimplement follow-up monitoring
Overseas, Hishikari• Continue implementing FY2022
initiatives

Achievement Criteria• E nvisaged the target scholarship recipients (people from the local community or people who contribute to the
local community) and considered suitable designs (Head Office)• Continued the SMM Arizona (Morenci)and SMM Oceania (Northparkes)
programs• Supported a measure for student loan
repayment exemptions for students
scheduled to be employed in Isa City,
which was added to the agenda for
discussion by the city assembly(Hishikari)• Accepted practical training students
from special needs schools (Hishikari,
Harima, Shinko Co., Ltd.)• Purchased from businesses that
employ people with disabilities (Ome,
Hishikari, Ichikawa Research Center,
GRANOPT Co., Ltd., Sumiko Energy
Materials Co., Ltd., Head Office)• Contracted work to a silver humanresources center, an organization thatprovides work to elderly workers(Hishikari)• Held a social contribution forum (onunderstanding dementia and preventing the need for people to leave work
to provide nursing care) and implemented a matching gift program• Implemented an online market andmatching gift program with NPO
Shinsei (Head Office)• Prepared to host and sponsor a boccia
tournament (Ome)• Implemented an end-of-year mutual
support activity aimed at supporting
the elderly (Ohkuchi Electronics Co.,
Ltd.)

Achievement Criteria

KPI 	3. Support for nurturing of the next generation
2) Establish and award scholarships in Japan and maintain existing overseas scholarships (from 2023)

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	4. Support for people with disabilities and the elderly• I mplement programs to support people with disabilities and the elderly in collaboration with government, local bodies, NPOs, etc. (one ormore times/year)

Action Plan

Action Plan

Business sites• Continue implementing FY2022
initiatives• In the second round of workshops
implemented by the Corporate
Citizenship Subcommittee, consider abreakdown of the ideal vision for eachbusiness site based on four KPI (nurturing of the next generation, support
for people with disabilities, support for
the elderly, and support during andafter disasters)
Company-wide• Support organizations that participate
in social contribution forums• Support organizations collaboratingwith employee participation programs• Develop and implement programs
that support time for all-around exploration in response to new governmental educational guidelines

Achievement Criteria• L eased ground to junior baseball team(Harima)• S ponsored junior baseball tournament(GRANOPT Co., Ltd.)•A
 ccepted interns from technical colleges and high schools (Besshi, Hyuga
Smelting Co., Ltd., Shinko Co., Ltd.)• P articipated in an adult education lecture program (Sumiko Energy Materials
Co., Ltd.)• P rovided visiting classes for elementary schools (Besshi, Hyuga Smelting
Co., Ltd.)• S ubsidized educational fees (CBNC)• P rovided financial support towardschool construction costs (THPAL)•G ifted tickets to the Pompeii Exhibition
to organizations affiliated to Carillon
Children’s Center (Head Office)•D onated to FC Imabari’s Satoyama
Stadium Project and bought the rights
to an engraved plate (Besshi, Head
Office)Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Achievement Criteria

Continue implementing FY2022
initiatives

Achievement
Criteria• Percentage of procurement from local
suppliers and percentage of employees hired locally• Percentage of senior managers hiredfrom the local community
P.159-160

FY2022 Results

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113

Social Social

Co-Existence and Mutual Prosperity with Local Communities

Cost of Social Contribution Activities

GRI 203-1

We are carrying out the following activities aimed at nurturing the next generation, supporting people with disabilities and theelderly, providing support during and after disasters, investing in infrastructure, and providing support services. As a result, in
FY2022 the cost of our social contribution activities amounted to approximately ¥1.9 billion. P.159
 Investment in Infrastructure and Support Services1
RegionJapan

Philippines

Details• Donations to scholarship funds for orphans in Iwate, Miyagi, and Fukushima Prefectures, which were hit by theGreat East Japan Earthquake (making donations every year since 2012)• Donations to medical organizations such as the Cancer Institute and the Japan Heart Foundation• Donations to sports organizations such as the Japanese Para-Sports Association• Support for basic science research, environmental research, and activities for the maintenance and restorationof cultural properties through The Sumitomo Foundation• Donations to Keidanren Nature Conservation Fund• Support for employment of former inmates and others by donating to the National Organization of Labor
Support Providers• Support for victims of crime through donations to the Victim Support Center of Tokyo• Expenditure on social contribution activities, such as contribution to Expo 2025 Osaka, Kansai, Japan• Supporting measures to prevent dengue fever in communities neighboring the plant (awareness activities,
spraying insecticide, cleaning activities, etc.)• Undertaking a water supply equipment installation project for communities neighboring the plant• Popularizing organic rice cultivation among communities neighboring the plant with the help of technicalexperts

Amount (FY2022)¥250 million

Details

AmountTime period

Hishikari Mine

Mine pollution control reserve¥23,090,000

From 1984

CBNC

Closure and cleanup for the refinery and mineral processing plant

Total approx. 330 million
pesos*

From 2012 (accumulating every

Expenses required for the closure plan

Total approx. 286 million
pesos

From 2016 (accumulating every

year)
year)

Model Project for Dialogue and Collaboration¥1,620 million

GRI 2-29

Acknowledging Grievances and Providing Explanations for Relocations

GRI 2-25/2-26/203-2/413-2/G4-MM7/G4-MM9
When grievances are voiced by governmental agencies or local communities at each site, we respond appropriately and share theinformation within the Company. In FY2022, the Group received four grievance reports from local residents, including ones concerning abnormal odors. All of these were handled in an appropriate manner.
Additionally, whenever we have no choice but to ask local residents to relocate their residences due to development of a mine or
related facilities, we provide alternative sites and obtain their understanding in advance. At the Hishikari Mine, we asked three local
households to relocate between 1983 and 1989, and at THPAL, we asked 41 households in the affected area to relocate.*
We are also planning to implement a human rights due diligence program targeting local residents at our overseas sites.
Furthermore, when closing a mine, we work to maintain local employment through initiatives such as building plants for otherbusinesses in the area. For example, when excavation at the Kunitomi Mine was stopped because of resource depletion, it continued to operate as a Smelter & Refinery. Then, when the Smelter & Refinery was closed in 1973, it was converted into a plant for
Sustainability Report 2023

G4-MM10* Expenses according to the closure plan CBNC submitted to the Department of Environmental and Natural Resources

We work to raise the direct contribution we make to the local economy through measures such as recruiting from areas surrounding our business site and procuring from local suppliers, and we also contribute to improving the living standards of these communities, particularly in emerging nations, by providing infrastructure such as roads and ports, building needed facilities, building andoperating public facilities such as schools, hospitals, and marketplaces, providing teaching materials as educational support and thegoods required to operate facilities, supporting free healthcare for local communities, and promoting activities that help households to support themselves. When implementing these measures, we establish opportunities for regular communication withlocal communities and move forward while also checking the requirements of local residents. In addition, twice a year we
exchange opinions with the international environmental NGO FoE Japan regarding issues such as the water quality of rivers around
Coral Bay Nickel Corporation (CBNC) and Taganito HPAL Nickel Corporation (THPAL), both of which are located in the Philippines.
Those opinions and recommendations are referred to when implementing necessary improvements.

SUMITOMO METAL MINING CO., LTD.

Closure Plans for Mines, Smelters and Refineries

THPAL

1. Investment in infrastructure and support services are non-commercial and provided free of charge
2. SDMP: Social Development and Management Program, conducted by a company for the welfare of residents living in the vicinity of its operating area114

* The relocation was planned in accordance with the World Bank Operational Policy on Involuntary Resettlement and was completed by December 2010 with the consent of all residents. After the relocation, we have continued to provide support for the repair and maintenance of the houses, as well as livelihood restoration support programs that encourage
residents to acquire skills and know-how that will enable them to generate income in the future

Business site

In the Philippines we are continuing to provide support through SDMP2

Communication with Local Communities and NGOs

manufacturing materials used in electronic components. Currently it is being operated by Sumiko Kunitomi Electronics Co., Ltd. andproduces high-quality products, such as lithium tantalate and samarium iron nitride.

Local issues vary from region to region, and we believe it is important to understand and resolve the issues facing each region
through dialogue with the local community.
The Ome District Division and the Tama University Research Institute collaborated to conduct a model project for dialogue andcollaboration called the Localized Contribution Survey. The purpose of this survey was to identify local issues through research, andto develop, operate, and evaluate our unique program that contributes to solving these issues.
The initiatives include interviews with local governments and neighboring companies and their employees, holding panel discussions and workshops with local stakeholders under the title of PROJECT OME, followed by the establishment of a Social
Contribution Promotion Committee at the Ome District Division. In addition, regular collaborative meetings with local social welfare councils and government officials have been established to explore issues.
Going forward, the Ome District Division will involve its employees in the formulation of the OME VISION and other activities tofoster a sense of ownership and create concrete results with local stakeholders. In addition, the model projects implemented at theOme District Division will be implemented at other business sites to contribute to the sustainable development of local communities by resolving issues faced by those communities.

Establishment of Scholarships in Japan
As one of the measures to support the nurturing of the next generation, in FY2023 we established the JEES-SMM Regional
Contribution Scholarship within the Japan Educational Exchanges and Services (JEES) based on our donation to support students
who are willing to contribute to the sustainable development of the regions where our plants and mines are located and who needfinancial assistance.
This scholarship provides ¥100,000 per month, non-repayable until graduation, to students who are motivated to contribute to
the sustainable development of the Tama District of Tokyo, Hyogo, Ehime, and Kagoshima Prefectures. We are awarding 20 scholarships to selected applicants in FY2023.
In addition, as a program to help scholars learn about supporting local communities, we are considering the formation of a community among scholarship recipients and the implementation of experiences for scholarship recipients to participate in efforts tosolve real community issues in collaboration with the local community.

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115

Social Social

Rights of Indigenous Peoples

Vision for 2030

Medium-Term Targets and Progress

GRI 3-3

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.

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

FY2022 Results

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	1. Understand indigenous peoples and their traditions and culture• Percentage of SMM Group sites implementing in-house education: 100% by the end of FY2023
GRI 3-3Mine development, smelting, and refining can have a considerable effect on the environment and local
communities and there is a risk that the rights of the indigenous peoples living on the land, who generally
occupy a vulnerable position in society, will be violated. Therefore, we think it is most important to proceed while gaining the understanding and trust of these indigenous peoples. We comply with international standards such as the United Nations Declaration on the Rights of Indigenous Peoples andcollaborate with local governments and other stakeholders while also maintaining an ongoing dialogue
with local indigenous peoples based on an understanding of their traditions and culture.

• Following on from the first video,
exchange information with experts
regarding the second video.

• Started consideration of the content of
the second educational video(As of the end of FY2021, the first video
was viewed by 5,902 employees andscreened at 100% of SMM Group sites)

Action PlanGRI 2-24/3-3• Continue to implement existing
initiatives• Attended lectures given by the NPOs
that the experts we are continuing
dialogue with belong to and held an
exchange of opinions on the theme of
responsible mineral sourcing.

• Continue dialogue with experts andconsider support initiatives.

Sustainability Committee
Action Plan

President
Human Rights Subcommittee
Dialogue

Collaborate
and cooperate
Check progress
on KPIs• Consider content of second educational video• Exchange information with experts• Exchange information with experts(Consider content of third educational
video during the 2024 3-Year BusinessPlan)• Continue to implement existing
initiatives• Continue to implement existing
initiatives• Regularly confirm implementation status of existing initiatives• Review the need for new scholarships
for indigenous peoples, including
exchange of information with experts
and individual sites• Regularly confirm implementation status of existing initiatives• Review the need for new scholarships
for indigenous peoples, including
exchange of information with experts
and individual sites• Support one or more indigenous people-related initiatives by NGOs, academic societies, etc. each year

• Support one or more indigenous people-related initiatives by NGOs, academic societies, etc. each year

• Continue dialogue with experts• Collect information on indigenous
people-related initiatives by NGOs,
academic societies, etc.

• Continue dialogue with experts• Collect information on indigenous
people-related initiatives by NGOs,
academic societies, etc.

Report grievanceExperts, NGOs

Department in charge(business division, etc.)• Screen third and subsequent in-house
educational videos at 100% of SMM
Group sites

KPI 	2. Support initiatives that lead to respect for the traditions and cultures of indigenous peoples
2) Support indigenous people-related initiatives by NGOs, academic societies, etc.: one initiative or more each year
Achievement
Criteria

 Promotion Structure• Implemented existing initiatives.
Philippines
Continued to provide local scholarships in consultation with stakeholders, including local residents andgovernments
North America and South America JV
mines
Implemented initiatives in collaboration with efforts of joint venture
partners

Action Plan

In accordance with our operational procedures related to business and human rights,1 at each business site we are engaging in dialogue with indigenous peoples who are directly affected by our business activities. Each business division and Head Office division
coordinates with the Human Rights Subcommittee to carry out in-house education that aims to provide Group employees with anunderstanding of indigenous peoples and their traditions and culture. In addition to this, the Sustainability Department, which isthe secretariat of the Human Rights Subcommittee, conducts exchanges of opinions through dialogue with external experts, NGOs,
and others. We also use the platform provided by the Japan Center for Engagement and Remedy on Business and Human Rights(JaCER)2 as a mechanism for redressing grievances.

Chair:
General Manager of Sustainability Department
Members:
Personnel in charge of each department• Screen second and subsequentin-house educational videos at 100%of SMM Group sites

KPI 	2. Support initiatives that lead to respect for the traditions and cultures of indigenous peoples
1) Provide scholarships for indigenous peoples (continue existing initiatives)
Achievement
Criteria

Promotion Structure• Created an in-house educational videoon the Sumitomo Metal Mining Group
Policy on Human Rights, which wasrevised on June 1, 2022, and used it to
implement in-house training

Achievement
Criteria

Approach and Policy

JaCER(grievance remedy platform)

Dialogue

Indigenous
peoples

Reportgrievance

Business sites(plants, mines, Group companies, etc.)

Contact regarding details of grievance, support redress

1. Business and human rights initiatives process
2. JaCER
P.77

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Social Social

Rights of Indigenous Peoples

Initiatives through Dialogue at Workplaces

GRI 2-24/2-25/411-1/MM5/MM6/MM7

The SMM Group collaborates with local governments, NGOs, and other stakeholders to engage in dialogue with indigenous peoples directly affected by its business activities.
In the Philippines, after acquiring Environmental Compliance Certificates through many consultations with stakeholders, including governments and indigenous peoples, we started operating Coral Bay Nickel Corporation (CBNC) in 2005 and Taganito HPAL
Nickel Corporation (THPAL) in 2013. Even after operations started, we established organizations to carry out community development (Social Development) in accordance with local laws and regulations, and are engaged in a Social Development andManagement Program (SDMP). Specifically, CBNC holds regular information exchanges with 22 barangays,* including 11 “impact
barangays” near Rio Tuba, while THPAL holds them with 14 barangays, including four neighboring “impact barangays.” Based onthese exchanges, budgets are prepared for the categories of health, education, welfare, livelihood, etc., and free health checkups,
medical treatment, agricultural assistance, etc. are provided after obtaining approval from the local government. In addition, we
also separately budget for activities not included in the SDMP, such as the construction of schools and assembly halls for indigenous peoples to educate them about their culture and unique languages.
In Canada, together with, IAMGOLD Corporation, our partner in the Cote Gold Project for which the decision to begin construction was made in 2020, we have held ongoing dialogue with First Nation peoples affected by it, as well as providing explanations
before gaining approvals, with the aim of helping them understand the project. We have fostered relationships of mutual trust andunderstanding with the organization through participation in initiatives such as cultural workshops hosted by the organization, andas a result, we were able to conclude an Impact Benefit Agreement. Currently, we are working with indigenous groups and partners
to construct a new lake with the same water surface area as the lake on the proposed development site, and to conserve biodiversity by releasing aquatic organisms from the existing lake into the newly constructed lake and surrounding water system.
Moreover, there have been no incidents of serious conflicts concerning land use or the customary rights of indigenous peoples
reported in the vicinity of any of the mines or smelters and refineries in which we have more than 50% interest. There have also
been no such incidents reported through channels including JaCER (grievance remedy platform).

Implementation of In-house Education

GRI 2-24/2-25

The SMM Group conducts in-house education to ensure that employees understand who indigenous people are and how theGroup should handle indigenous rights. This education will enable employees to understand that it is an issue that concerns us all
through messages from top management and case studies from within the Group. We are also continuing dialogues with experts*
on indigenous people regarding content and receiving guidance to ensure fairness in the materials.
Acting under the guidance of experts, we will continue our efforts to further deepen Group employees’ understanding of indigenous peoples and their traditions and cultures.
* Keiichi Omoto (emeritus professor of anthropology at the University of Tokyo), Tomoaki Nishihara (professor at Seisa University), Eiichiro Noguchi (coordinator of the NGO Taiga Forum)

Support initiatives that lead to respect for the traditions and cultures
In 2007, we established Sumitomo Metal Mining Peru S.A. (SMM Peru) as our subsidiary in Peru, and since then, we have worked
continuously to foster strong relationships with the country, including acquiring a stake in the Cerro Verde copper mine and carrying out exploration activities. One example of this relationship building is the donations we have made to the AMANO PreColumbian Textile Museum.* The museum was established in 1964 in Lima, Peru, by the late businessman Yoshitaro Amano withthe goal of conserving important Andean cultural artifacts and sharing the results of research into these cultures. We support themuseum’s efforts to communicate the richness of the Andean civilizations to not only Japan, but also the entire world, and from2007 to 2014 we made donations totaling approximately US$590,000.
We will continue to support initiatives that lead to respect for the traditions and cultures of indigenous peoples.
*

AMANO Pre-Columbian Textile Museum
http://eng.museoamano.org/* The smallest administrative division that makes up cities and towns in the Philippines, and denotes a village, district, or ward.

Dialogue with Experts, NGOs, and NPOs

GRI 2-25

We regularly create opportunities for dialogue with experts, mainly through the secretariat of the Human Rights Subcommittee,
and hold exchanges of opinions on topics including international trends concerning the human rights of indigenous peoples.
In FY2022 in particular, we participated in meetings of NPOs engaged in activities related to the human rights of indigenous peoples and gave lectures on the theme of responsible mineral sourcing concerning the overall mining, smelting, and refining industries and Group initiatives. We gave explanations of corporate initiatives, such as international third-party verification frameworks
that are engaging the entire industry, and exchanged opinions on problems and challenges concerning initiatives.

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Social Social

Human Rights in the Supply Chain

Vision for 2030

Medium-Term Targets and Progress

GRI 3-3

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.

A company that undertakes sustainable procurement acrossthe supply chain
Approach and Policy

FY2022 Results

GRI 3-3



GRI 2-24/3-3/406-1/407-1/408-1/409-1

 Promotion Structure
Sustainability Committee
President
JaCER(grievance remedy platform)“Responsible Mineral Sourcing”
Working Group

Chair: General Manager of the Sustainability
Department
Members: Personnel in charge of each department

Chair: General Manager of the Non-Ferrous Metals Division
Deputy Chair: General Manager of the Sustainability Department
Members
Collaborate
and cooperate

Check progress
on KPIs
Collaborate and cooperate
Check progress on KPIs

Department in charge(business division, etc.)

Report grievanceDuediligence

Supply chain(including employees therein)

Business sites(plants, mines, Group companies, etc.)1) 2)• Select international standards in
response to demands of stakeholders,
particularly customers• Complete establishment of mineralsourcing management system

1) 2)• Maintain mineral sourcing management system

1) 2)• Exchange information with customers
and industry groups• Continue to receive third-party auditsof 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 auditsof smelters and refineries• Continue to respond to supply chain
questionnaires from customers• Update management system asappropriate

2. Sustainable Procurement
1) Business partners that have received and agreed with the Sumitomo Metal Mining Group Sustainable Procurement Policy1: 100% by theend 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)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 mineralsourcing), and a message from top
management• Five companies were selected fromamong our major business partners,
one from each business division andPurchasing Department, and eachcompany was visited for discussions
on sustainability (especially businessand 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 thestatus of their use by customer
companies• Participated in JaCER, which provides aplatform 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 withbusiness partners and other dialogues
and consider the use of existing platforms, such as RBA, for due diligence inthe supply chain• Promote external awareness of ourparticipation in JaCER

Action Plan

Human Rights
Subcommittee

KPI

1) 2)
• Consider acquiring Copper Mark certification for responsible production
activities at our copper smelters andrefineries• In cooperation with target divisions(Battery Materials Division andAdvanced Materials Division), plan toestablish a due diligence system forprocurement of external raw materials
in line with international standards

Achievement Criteria

In accordance with the Business and Human Rights Initiatives Process1, we conduct due diligence on our business partners (suppliers) through the raw material procurement staff of each business division, the Purchasing Department, and each business site withthe aim of building a sustainable supply chain. The Sustainability Department, the secretariat of the Human Rights Subcommittee,
collaborates and cooperates with these efforts.
In particular, the “Responsible Mineral Sourcing” Working Group, which makes decisions on important matters related to mineralsourcing, has been established under the Sustainability Committee to address responsible mineral sourcing throughout the entire
supply chain.
In addition, we use the platform of the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER)2 as agrievance mechanism.
Through our due diligence and grievance mechanisms, we have not identified any business partners (suppliers) at risk withrespect to discrimination, freedom of association, the right to collective bargaining, or child or forced labor.

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 Divisionand 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 andrefineries (Niihama Nickel Refineryand Harima Refinery)
Made plans to undergo third-party
audits at the copper smelter andrefinery (Toyo Smelter & Refinery)2) Zero business partners to our smelters and refineries complicit in humanrights 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 nobusiness partners were involved inhuman rights infringements

Action Plan

Promotion Structure

1)• Receive agreement from 100% ofmajor business partners
2)• Establish sustainable procurement
management system

1)• Finalize scope of business partners
subject to self-assessment during the2024 3-Year Business Plan and receive
agreement from 100% of those business partners
2)• Maintain sustainable procurement
management system1)• 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 partners2) 3)• Consider participation in multi-stakeholder initiatives on due diligence anda grievance mechanism• Implement second-party audits ofbusiness partners (target: 5 business
partners/year)1)• In cooperation with the in-house
related departments, promote understanding of policy extension andreceiving agreement among the main
business partners (review scopeduring 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: 8business partners/year)• Implement due diligence including
third-party audits in line with the management system• Operate the grievance mechanism inline with the management system

Contact regarding details of grievance, support redress

1. Business and human rights initiatives process
2. JaCER
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Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	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
Achievement
Criteria

The SMM Group aims to build a sustainable supply chain in cooperation with its stakeholders. 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
Sustainable Procurement Policy. Should any issues occur, they are corrected. In regard to the sourcing ofminerals in particular, in order to avoid procuring minerals that may have negative impacts such as childlabor and other human rights abuses or environmental pollution, we carry out activities with respect to
the Organisation for Economic Co-operation and Development (OECD) guidance and in accordance with
the SMM Group Responsible Mineral Sourcing Policy.

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

1.                                             2.
Sumitomo Metal Mining Group Sustainable Procurement Policy

https://www.smm.co.jp/en/sustainability/management/csr_procurement/

RBA
https://www.responsiblebusiness.org/

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Human Rights in the Supply Chain

SMM Group Responsible Mineral Sourcing Policy

Sumitomo Metal Mining Group Sustainable Procurement Policy

Pursuant to the SMM Group Policy on Human Rights, we do not buy minerals that may be associated withhuman 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.

The SMM Group carries out procurement activities in cooperation with its stakeholders that take into
account human rights and labor, compliance, quality assurance, and environment and local communities
based on the SMM Group Corporate Philosophy, the SMM Group Sustainability Policy and the SMM Group
Code of Conduct.

Responsible Mineral SourcingGRI 2-24/2-25/308-1/414-1/MM8

Upstream

Downstream

Mines

Smelters and refineries

Audit at the smelter and refinery

Materials manufacturers

Parts manufacturers

Finished goods manufacturers

Smelter and refinery identifiable through standardized documentation-based survey

We undertake responsible mineral sourcing initiatives in line with mechanisms advanced by the international Responsible Minerals
Initiative (RMI)* to ensure supply chain transparency (see diagram above). These mechanisms aim to ensure transparency in the
supply chain from upstream to downstream in a more efficient manner by starting with smelters and refineries, which are relatively
few in number.
At the finished goods manufacturers downstream from the smelters and refineries, a standardized survey is extended for the purpose of identifying the smelters and refineries that produced the minerals used in their products. We have established an approval
process for responses to these surveys, which are sent up the supply chain from customer companies, and are working to ensure
unified responses across the SMM Group. In FY2022, we responded to 330 surveys. P.161
Upstream of smelters and refineries, we regularly undergo third-party, international standards- based audits of responsible mineral sourcing mechanisms at our smelters and refineries, covering matters including risk assessments of suppliers. Since audit standards vary from mineral to mineral, we work to ensure that each standard is met by conducting due diligence, developing internal
systems and regulations, and providing internal training. The table below shows the status of third-party audits at our smelters andrefineries.
Subject Minerals
Gold

SilverCobaltNickelCopperRGG (LBMA)RSG (LBMA)RMAP Cobalt (RMI)

JDDS (The Copper Mark)JDDS (The Copper Mark)

Certification Body

LBMA

LBMA

RMI

RMI

RMI

Audit start date

FY2012FY2018FY2020

FY2022

FY2023

Audit standards(issuing organization)

Additionally, when the Smelting and Refining Business selects a new company as a supplier, we assess how that company carries
out environmental management, including management of water resources and tailings dams. In FY2022, there were no new suppliers selected. There were also no instances of artisanal and small-scale mining (ASM) in or adjacent to the project area.
* 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.

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Initiatives Related to Sustainable Procurement

GRI 2-24/2-25/308-2/414-2

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.
* Percentage of on-site procurement from local suppliers

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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 theunderstanding 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 themwith 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 haveconsented 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.

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Social Social

Engagement with Stakeholders

Vision for 2030

Promotion StructureEngagement with stakeholders is one of our material issues, and we have made each of our business divisions and business sites
into a channel for maintaining dialogue with governmental agencies and local communities. Furthermore, the Public Relations &Investor Relations Department, which is the secretariat of the Communications Subcommittee, compiles information from withing
the Company and uses it in communications with the media and investors. In addition to this, the Communications Subcommittee,
which is an organization under the Sustainability Committee, coordinates with members dispatched from each business and corporate division to check progress being made on KPIs.

A company that is appreciated and understood to be theworld leader in non-ferrous metals
Approach and Policy

GRI 3-3



GRI 3-3

 Promotion Structure
Sustainability Committee

Our Vision for 2030 aims to solve social issues and gaining the trust of stakeholders is essential for realizing
this vision. We are working to ensure that our diverse stakeholders correctly understand the true size of
the Group and encouraging them to share in our goal of becoming the world leader in the non-ferrous
metals industry. We have identified the groups of stakeholders who affect or are affected by the SMM
Group as customers, shareholders, employees, local communities, creditors, business partners, NGOs andNPOs, and government agencies. We have set targets for how we should engage with each of thesegroups, and we are advancing various initiatives to achieve these targets.

President
Communications Subcommittee
Chair: General Manager of Public Relations &Investor Relations Department
Members:
Personnel in charge of each department

Collaborate
and cooperate
Check progress
on KPIs

Department in charge(business division, etc.)

Business sites (plants, mines, Group companies, etc.)
Personnel responsible for general affairs
Local
Communities

Employees
Customers

NGOs / NPOs
Workstyle reform and job
satisfaction

Medium-Term Targets and Progress

Impact on region
Consideration of human rights
and the environment

Responsible procurement
CO2 emissions reductions

GRI 3-3

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.

SMM
FY2022 Results
ESG investment

Contribution to the realization of a sustainable society

Shareholders

Business
Partners

SMM’s Vision for Stakeholder Engagement

GRI 2-29

Be a company that accurately understands customer needs and has comprehensive competitiveness with an edge over other firms
with respect to technology, quality, delivery and costs.

Shareholders

Be an excellent entity in which to invest: one that pursues maximum corporate value through growth strategies and sound governance, disburses dividends matching its business performance, and discloses information as appropriate.

Employees

Be a company that provides a favorable work environment, clearly defines the roles of all individuals within the organization, andmakes employees proud to work for it.

Local Communities

Be a company that coexists well with its local communities, makes positive contributions to those regions’ development, and actswith respect for the traditions and culture of indigenous peoples.

Creditors

Be a company that has earning capacity, outstanding financial strength, and trustworthiness.

Business Partners

Be a company that possesses outstanding technological strength, places importance on integrity and trust, and which is capable ofconducting business on an equal footing for co-prosperity.

NGOs / NPOs

Be a company that listens to diverse opinions on social issues and undertakes appropriate communication through dialogue andother means.

Government Agencies

Be a company that implements compliance fully and makes positive contributions for the benefit of the countries and local communities where it is undertaking its projects.
Sustainability Report 2023

• Application of good practices in
in-house communication measures atother sites
Developed good practices forCommunications Subcommittee
members in January 2023
• Raising brand profile within the GroupSet the creation and use of a brandbooklet as a major measure with thegoal of “creating loyalty and affection
for the Company among employees”• Employee awareness survey
Held meetings to report the results of
the March 2022 survey to senior management members, heads of divisions
and business sites, and presidents ofGroup companies(The percentage of employees who
gave a positive response to the question of feeling pride in working at theCompany was 63.7%)• Application of good practices in
in-house communication measures atother sites
Develop good practices forCommunications Subcommittee
members in the second half of the fiscal year
• Raising brand profile within the Group
Advance the creation and use of abrand booklet with the Ome District
Division as a pioneer site
• Employee awareness survey
From FY2023, the frequency of surveys
will be increased from every three
years to every year. These surveys will
be conducted in November

Action Plan

Customers

SUMITOMO METAL MINING CO., LTD.

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	1. Further penetrate our Group brand among employees• Improve results of employee awareness survey (increase percentage of employees who feel pride in working at the Company)

Government
Agencies

Achievement Criteria

Creditors

124

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

SDG engagement• Improve employee awareness survey
KPI values from results of FY2021
survey• Improve employee awareness survey
KPI values from results of each fiscal
year’s survey• Implement in-house communication
measures at each site to gain understanding and empathy of employees
and their families• Apply good practices in in-house communication measures at other sites• Create framework for raising the brandprofile within the Group, implement
and review measures for further penetrating the brand among employees• Refine in-house communication
measures• Verify level of penetration of the brandwithin the Group (continue from 2024
3-Year Business Plan), consider strategies for application to Group companies

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125Social Social

Engagement with Stakeholders

FY2022 Results

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	2. Ensure quality and quantity in communication of information at the level of “world leader in the non-ferrous metals industry”
1) Expand opportunities for dialogues with media and investors
2) Achieve positive evaluations of our Integrated Report from outside the Company
1)• Enhance public relations events andstrengthen relationships with themedia• Enhance opportunities for ongoing
dialogue with important institutional
investors with a focus on executive
officers and senior management
members2)
Issue the Japanese version of Integrated
Report 2023, our eight such report, in
September and the English version in
November. During editing, improve
content based on the feedback received
from various stakeholders to date

Achievement Criteria
Action Plan

1)
• Conducted intensive media engagement, including interviews with top
management, alongside the release of
the 2021 3-Year Business Plan
• Responded actively to media coverage
focused on the Materials Business,
which is attracting attention due tothe introduction of EVs• Expanded interviews aimed at institutional investors. Also, restarted efforts
such as small meetings on specificbusinesses that are in high demand
from investors, as well as plant observations and overseas IR activities,
which had been suspended due to thepandemic (site visits)• Implemented new initiatives such as
the participation of outside directors inshareholder relations interviews andholding Sustainability Briefing (IR-Day)
2)
Issued Integrated Report 2022
(Japanese and English)
Received a Silver Award at the WICIJapan Integrated Reporting Awards
2022 and the Grand Prix S Award at the
NIKKEI Integrated Report Awards 2022

• Quantitatively increase information
dissemination (compared to the 2018
3-Year Business Plan)• Increase opportunities for top management to engage with shareholders
and investors (compared to the 2018
3-Year Business Plan)• Earn a high reputation for the integrated report from outside theCompany• Increase the number of interviews,
news releases, and public relations
events conducted• Take initiatives to increase spokesperson engagement levels• Improve the quality of disclosure in
investor relations and shareholder relations engagement• Improve and enhance tools forengagement with shareholders andinvestors (integrated reports, shareholder communications, etc.)

During all 3-Year Business Plans, compared to the previous plan
• Quantitatively increase information
dissemination• Expand the methods for disseminating
information• Increase opportunities for top management to engage with shareholders
and investors• Earn a high reputation for the integrated report from outside theCompany
Target for final year of the 2027 3-YearBusiness Plan
• Establish a system capable of building
relationships with international media• Increase the number of interviews,
news releases, and public relations
events conducted• Establish public relations organizations
at overseas business sites• Acquire (2024 3-Year Business Plan)and increase highly specialized humanresources in the field of public
relations• Improve the quality of disclosure in
investor relations and shareholder relations engagement• Improve and enhance tools forengagement with shareholders andinvestors (integrated reports, shareholder communications, etc.)• Expand the types of information dissemination media and public relations
events (2024 3-Year Business Plan)

Stakeholder Engagement
Stakeholders

Customers

GRI 2-29

PurposeCorrectly understand customer needs

Action Plan

SUMITOMO METAL MINING CO., LTD.

Achievement
Criteria126• Continue corporate advertising
activities• Implement our own original survey
gauging degree of recognition, in
addition to the survey implemented
by an external body, to gain a better
understanding of the Company’s position through cross-referencing• Consider and implement sponsorshipof sports events, etc.

Sustainability Report 2023

• Raise the result of the survey gauging
degree of recognition implemented by
an external body by 35% compared to
FY2021• Meet target value in the 2021 3-YearBusiness Plan regarding the result of
the survey gauging degree of recognition implemented by an external body• Promote branding activities that leadto recognition, understanding, andempathy for SMM. Run a large-scale
advertising campaign to secure
human resources• Implement external communication
measures at Head Office and individualsites to build positive relationships
with communities and government• Run ongoing advertising campaigns toconsolidate recognition, understanding, and empathy• Continue external communication
measures at individual sites over the
medium to long term
Targets to be implemented during the2024 3-Year Business Plan
• Consider additional measures forbranding activities depending on KPI
achievement status• Promote and accelerate external communication measures

Communication methods

Dissemination of information on the
Company and its business activities

Various media, website

Guidance for products, service, andbusiness activities, and in-housesharing of feedback, including opinions and requests

Business activities

Matters related to ESG, mineralsourcing, etc.

Survey responses
General meetings of shareholders
Briefings on financial results and progressof business strategy

Shareholders(Including Investors)

Enhance corporate value throughgrowth strategies and firm governanceand carry out appropriate information
disclosure

Telephone conferences aligned withfinancial results disclosures
Financial results, business reports,
ESG information, etc.

Sustainability Briefing held as part of
Sumitomo Metal Mining IR-Day 2022
Meetings with institutional investors fromJapan and overseas
Issuance of shareholder communications
Briefings for individual investors

Employees

Make workplaces where employees
are proud to work by building goodwork environments and ensuring eachindividual has a clear role within theorganization

KPI 	3. 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.)•A ccording to a survey gauging degreeof recognition implemented by an
external body in the first half of
FY2022, recognition of the Company
remained roughly level (effects of corporate advertising activities carried out
from October 2022 onward notreflected)• Launched a corporate advertising
campaign from October 2022 thatused a celebrity to raise recognition
with the aim of securing humanresources. This included a TV commercial and online advertisements• Sponsored the Minato City Half
Marathon, Ehime Marathon, and theOhme 30&10Km Road Race, and strove
to enhance the Company’s presencearound business sites through exhibition booths, etc.

Content

Dissemination of management information including business activities,
event information, etc.

In-house bulletins and intranet

Provision of various educational andtraining opportunities

Various training activities

Information concerning work environments, communication, harassment, usage of reporting channels,
etc.

Various surveys (employment environment surveys, employee awareness surveys, stress check surveys)

Discussion and mutual understanding concerning issues between laborand management

Labor-management council meetings,
labor-management discussions, andLabor-Management Advisory Committee
meetings
Central Labor Management Conference

Local Communities(Including Indigenous
Peoples)

Coexist with the local community,
contribute to regional development,
and behave with respect for the traditions and culture of indigenous
peoples

Business Partners(Including Suppliers)

Reduce risk related to human rights
and labor, compliance, quality assurance, and environment and local communities, etc., and practice sustainableprocurement

Exchange with and contribution to
the development of local
communities

Social contribution activities in eachregionExchanges of opinions on humanrights, including the rights of indigenous peoples

Exchanges of opinions on human rights
issues with external experts, indigenous
peoples, etc.

Explanations of the Sustainable
Procurement Policy, sustainability
matters, etc.

Videos explaining sustainability

Discussion regarding sustainability(particularly business and humanrights)Visits to business partners

NGOs / NPOs

Listen to diverse opinions regarding
social issues and maintain appropriate
communication, including dialogue

Information gathering andexchanges of opinions

Regular exchanges of opinions

Government Agencies

Practice thorough compliance andcontribute to the development of thecountries and communities in which
we do businessInformation gathering andexchanges of opinions

Regular exchanges of opinions

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

127Social Social

Engagement with Stakeholders

Implementation and Results of the Employee Awareness Survey

Main Organizations in Which SMM Has MembershipThe SMM Group has commissioned a specialized external organization to conduct employee awareness surveys in order to measure the satisfaction and engagement of its employees, who are important stakeholders, and to create a better company and workplace. These surveys have been conducted every three years since FY2010, with the fifth survey conducted in FY2021. The survey
covered 5,153 people from 10 companies,* with a total of 141 questions, and a response rate of 94.4%. Their purpose is to gain aquantitative understanding of how employee awareness has changed over the three years since the previous survey and what kindof awareness employees currently have about working at the Company, and to use this information to develop management measures to create an even better company and workplace.
The results of this survey are fed back to top management, general managers of departments and divisions at the head office,heads of business divisions and business sites, presidents of Group companies, labor unions, etc. For directly controlled businesssites, Group companies, and other sites, we disclose data by site to help improve management at each site. In FY2022, we held
approximately 30 feedback briefings on the results of the FY2021 survey. The survey results and explanatory articles are publishedin in-house magazine for employees to read.
In order to make more effective use of the employee awareness survey, the frequency of the survey will be increased from every
three years to annually starting in FY2023, and the survey content and feedback methods will be revised.

Organization

Responsibilities of SMM officers and employees

Initiatives relating to public policy

Japan Business Federation(Keidanren)

Executive member; participation in the following committees:
Overseas Development Cooperation, Canada, Environment,
Oceanic Resources, International Cooperation, China, South Asia,
Japan-Myanmar Economic, Japan-Brazil Economic, Diversity &Inclusion, Crisis Management & National Resilience, Innovation,
Mobility, Energy and Resources (Planning subcommittee), Labor
Legislation (Occupational Health and Safety subcommittee)

As a unified business organization with the goal of making
improvements to the autonomous growth of the domestic economy and to public life, we act reliably and swiftly after gathering
opinions from the business world with regards to various internaland external economic challenges.

APEC Business Advisory Council
Japan

MemberJapan Mining Industry
Association (JMIA)

Chair (2023); participation in the following committees andothers:Reserves (chair and deputy chair), Planning and Coordination(chair and deputy chair), Energy, Overseas Development,
Environmental Management (chair and deputy chair), Customs
Duties, Funds, Supply and Demand, Taxation, Exploration andDevelopment, Sulfide Ore and Sulfuric Acid, the Special
Committee for Depletion Allowance Measures (chair and deputy
chair), and Safety Promotion

International Council on Mining
and Metals (ICMM)

Participation in the Council, Principal Liaisons Committee, andother related bodies

Implement ICMM’s Mining Principles
Initiatives addressing priority issues in the fields of environment,
society, governance and transparency, and innovation

International Copper
Association, Ltd. (ICA)

Participation in the Board of Directors, Strategy Committee,
Material Stewardship Council, Asia Regional Council, and otherrelated bodies

Brings together the global copper industry to develop and defend
markets for copper and to make a positive contribution to society’s sustainable development goals.
• Develop new uses for copper• Promote demand for copper• Contribute to achieving the SDGs

Japan Copper Development
Association (JDCA)

Chairperson
One director• Develop uses for copper/copper products; develop technology• Provide correct information about copper (verdigris, bluish waterfrom copper pipes, etc.)

Nickel Institute (NI)Participate in meetings of the Board, Executive Committee,
Strategic and Planning Advisory Committee, and other relatedbodiesParticipate on committees for PP&S (public policy and sustainability), Science (scientific research), and MD (market
development)* Companies surveyed: Sumitomo Metal Mining Co., Ltd., Sumiko Logistics Co., Ltd., Hyuga Smelting Co., Ltd., Sumiko Energy Materials Co., Ltd., Ohkuchi Electronics Co., Ltd., Sumiko
Kunitomi Electronics Co., Ltd., Ohkuchi Materials Co., Ltd., Shinko Co., Ltd., Sumiko Techno-Research Co., Ltd, Sumitomo Metal Mining Siporex Co., Ltd.

 Results of employee awareness survey
Q. Are you proud of being an employee for Sumitomo Metal Mining?

Q. Do you think your company is an attractive workplace for you?

 Very much  Pretty much
 Ambivalent  Not so much  Not at all Very much so  Pretty much so Ambivalent  Not so much  Not really

Percentage of
positive responses

FY201914.03%

48.41%

26.93%

Percentage of
positive responses

FY2021

Percentage of
positive responses

48.24%

43.45%
8.47% 2.16%

4.79%
FY202163.69%

47.29%

16.40%FY201962.44%

26.55%

39.23%

Percentage of
positive responses

10.25% 2.28%

54.63%

48.01%
6.99% 2.77%

6.62%

35.16%
8.11% 2.11%

List of Main External Awards (FY2022)
Year/
month

RecipientAward received for

The Japan Society for Analytical
Chemistry Award of Merit

2022/9Sumitomo Metal Mining Co., Ltd.,
Non-Ferrous Metals Division
Sumiko Techno-Research Co., Ltd.

The award is given to individuals who have amassed long-term research results in chemical analysis
or for their meritorious service in the maintenance and manufacture of equipment, instruments, andreagents which are indispensable for analytical work. The work of two Group employees was recognized with the Award of Merit.

General Meeting of the Korean
Institute of Resources Recycling
Excellent Paper Presentation Award

2022/10

Sumitomo Metal Mining Co., Ltd.,Technology DivisionThis award for excellent paper presentations was awarded to two employees in the Technology
Division by the Korean Institute of Resources Recycling (KIRR), a South Korean academic researchorganization equivalent to the Mining and Materials Processing Institute of Japan.

2022/11

Sumitomo Metal Mining Co., Ltd.,Technology DivisionThis award was presented to an employee of the Technology Division in recognition of his contribution to the application of solvent extraction technologies in the non-ferrous metals field by the Japan
Association of Solvent Extraction (JASE), an organization comprising academic research institutes,
technology development institutes, universities, and other organizations from a wide range of fields,
including chemical engineering, analytical chemistry, nuclear power engineering, and metallurgy.

AwardsJapan Association of Solvent
Extraction Award

2022 Presidential Mineral Industry
Environmental Award (PMIEA)

Modal Shift Excellent Company
Award

128

SUMITOMO METAL MINING CO., LTD.

2022/112022/12

Coral Bay Nickel Corporation andTaganito HPAL Nickel Corporation

Sumiko Logistics Co., Ltd.

Sustainability Report 2023

In the Philippines, CBNC was awarded the 2022 Presidential Mineral Industry Environmental Award(PMIEA). This is the third consecutive year it has won this award and the eight time overall.
Furthermore, it also won awards for Safest Mineral Processing - Extraction Category Award for a second consecutive year, as well as an award for Best Mining Forest Contest alongside THPAL. The PMIEA
is the highest honor that can be awarded in the Philippine mining industry. SMM received the award
after scoring highly on a comprehensive assessment of factors including environmental and safety
management at plants, conservation of local environments, and contribution to local communities.
Modal shift refers to a shift in the modes of transportation used in logistics systems from long-distance trucks to sea or rail transportation. At the Awards Ceremony for Excellent Company Working on
Modal Shift hosted by Japan Association for Logistics and Transport, Sumiko Logistics was awarded
the Excellent Company Working on Modal Shift Award (Improvement Category) due to its excellencein proactively working to advance a modal shift. This is the second time the company has won theaward.

GRI 2-28

As a member of the Japanese Chapter of the APEC Business
Advisory Council (ABAC), an official private sector advisory entity
for the Asia-Pacific Economic Cooperation (APEC), we support theorganization’s activities.
Submission of mining industry policy requests to relevant government agencies regarding climate change countermeasures, electricity issues, taxation, resource development, smelting andrecycling, mine safety, and personnel recruitment and training
development. Sending observers to government-sponsoredinvestigative committees to present industry viewpoints.

Supporting the sustainable growth and development in the current stainless steel market and new markets for nickel, promoting
sound science, risk management, and socio-economic benefit as
the basis for public policy and regulation.

One director
Participate in Board, and Executive Committee (EXCO) meetings.

As a representative of the cobalt industry, we provide advice
addressing all issues related to cobalt, including health, safety, andenvironmental issues, in a way that encourages sustainable andresponsible production and use. We also work to obtain and shareoriginal information regarding sourcing, production, and use.

The Sulphuric Acid Associationof JapanOne director; participation in the General Affairs Committee,
Business Affairs Committee, Technical Committee and Editorial
Committee

Communicating policy and information from the Manufacturing
Industries Bureau of the Ministry of Economy, Trade and Industry
to member companies and compiling and presenting requests
from member companies. Striving to publicize and promote useof sulfuric acid as an industry organization through means such as
issuing booklets on sulfuric acid, and establishing the Standard of
the Sulphuric Acid Association of Japan (a quality standard for sulfuric acid).

Japan Electronics andInformation Technology
Industries Association (JEITA)

Participate in Electronic Components Board and Dielectric
Ceramics Committee

Battery Association of Japan(BAJ)

Associate member

Promotion of measures related to recycling, quality performance,and product safety that will be required in the future as demand
for secondary batteries increases.

Battery Association for Supply
Chain (BASC)

Regular member
One director (deputy chairperson)

Provide advice on government policy to strengthen the global
competitiveness of Japan and promote deliberation in Japan
regarding conforming to international standards for each type of
raw material in order to facilitate the development of healthy supply chains for batteries, battery parts, and materials.

Cobalt Institute (CI)

Collection of various statistics, and participation in reviews of regulations, standards, environmental measures and other issues.

As of July 2023

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

129

Social Social

Engagement with Stakeholders

Participation in and Declarations of Support for International OrganizationsGRI 2-28

Validation of Implementation and Progress of Performance Expectations (PEs)
Within our target sites* for PEs, we have prioritized the sites to undergo third-party validation as follows.

SMM participates in international organizations, issues declarations of support, complies with the organizations’ rules, and supports
their activities. As a company in the mining and metal smelting and refining industries, we undertake initiatives for the sustainable
development demanded of us.

International Council on Mining and Metals (ICMM)
ICMM is an international organization established to ensure that the mining and metals industries are made safe, fair, and sustainable. It is comprised of the world’s biggest mining and metals companies, as well as regional and commodity-focused organizations. SMM is a member company.
ICMM has Mining Principles as guidance for environmental, social, and governance initiatives in the mining and metals industries.
The Mining Principles comprise 10 Principles, a set of performance expectations that stipulate specific targets for action on theseprinciples, position statements concerning certain specific issues, and an assurance and validation procedure.
The SMM Group reflects the ICMM 10 Principles and position statements in the visions and materiality issues of our Vision for
2030.
ICMM
https://www.icmm.com/
Performance Expectations
https://www.icmm.com/en-gb/our-principles

P.131

The 10 Principles of the ICMM
Principle 1:

Apply ethical business practices and sound systems of corporate governance and transparency to support sustainable development.

Principle 6:

Pursue continual improvement in environmental performance issues, such as water stewardship, energy use andclimate change.

Principle 2:

Integrate sustainable development in corporate strategy
and decision-making processes.

Principle 7:

Contribute to the conservation of biodiversity and integrated approaches to land-use planning.

Principle 3:

Respect human rights and the interests, cultures, customs
and values of workers and communities affected by ouractivities.

Principle 8:

Facilitate and support the knowledge-base and systems
for responsible design, use, re-use, recycling and disposalof products containing metals and minerals.

Principle 4:

Implement effective risk-management strategies and systems based on sound science and which account for
stakeholder perceptions of risks.

Principle 9:

Pursue continual improvement in social performance andcontribute to the social, economic and institutional development of host countries and communities.

Principle 5:

Pursue continual improvement in physical and psychological health and safety performance with the ultimate goalof zero harm.

Principle 10:

Proactively engage key stakeholders on sustainable development challenges and opportunities in an open andtransparent manner. Effectively report and independently
verify progress and performance.

Position statements
ICMM has set forth the following position statements regarding important individual issues. The SMM Group is committed to complying
with these initiatives.
Diversity, equality and inclusion; transparency of mineral revenues; climate change; water stewardship; tailings governance framework; indigenous peoples and mining; mining partnerships for development; mercury risk management; mining and protected areas

Sites that produce or smelt and refine gold, silver, copper, and nickel, which are included in the minerals subject to international
responsible mineral sourcing, sites that are large in scale (production volume, number of employees, etc.), and sites that produce metals as finished products (excluding facilities producing intermediate products)• In FY2022, the Toyo Smelter & Refinery underwent third-party validation. P.132-137• Hishikari Mine is scheduled to undergo verification in FY2023, and Niihama Nickel Refinery in FY2024.
* Defined by ICMM as operations involved in the production or refining of minerals and metals for sale or further processing.

 Self-Assessment Results for the Entire Company (conducted in 2022)
Outcome1
Meets

Partially Meets

Does not meet

N/A

14

14

2

0

We agree with and have declared our support for the aims of the Extractive Industries Transparency Initiative (EITI).** EITI is a framework for multinational cooperation that enhances transparency in the flow of funds from the so-called extractive industries, those that are involved in oil, gas, and mineral resources, to the governments of resource-producing countries, to prevent corruption and conflict and thereby promote responsible resource development that leads togrowth and the reduction of poverty.

EITI
https://eiti.org/

EITI Principles
1 We share a belief that the prudent use of natural resource wealth should

7 We recognise the enhanced environment for domestic and foreign

be an important engine for sustainable economic growth that contributes to sustainable development and poverty reduction, but if not managed properly, can create negative economic and social impacts.

8 We believe in the principle and practice of accountability by govern-

2 We affirm that management of natural resource wealth for the benefit

direct investment that financial transparency may bring.
ment to all citizens for the stewardship of revenue streams and public
expenditure.

of a country’s citizens is in the domain of sovereign governments to be
exercised in the interest of their national development.

9 We are committed to encouraging high standards of transparency and3 We recognise that the benefits of resource extraction occur as revenue

10 We believe that a broadly consistent and workable approach to the dis-streams over many years and can be highly price dependent.
4 We recognise that a public understanding of government revenues andcompanies in the extractive industries and the need to enhance publicfinancial management and accountability.
6 We recognise that achievement of greater transparency must be set in

the context of respect for contracts and laws.

Sustainability Report 2023

30

Extractive Industries Transparency Initiative (EITI)

5 We underline the importance of transparency by governments and

SUMITOMO METAL MINING CO., LTD.

Total

1. Each of the PEs was evaluated in light of the judgment criteria indicated for each PE in ICMM’s Validation Guidance, as follows
Meets: Systems and/or practices related to the PE have been implemented (all the judgment criteria in the Validation Guidance are met) and there is sufficient evidence thereof
Partially meets: Systems and/or practices related to the PE have been partially implemented (some judgment criteria of Validation Guidance are met). Or, verifiable evidence
provided is insufficient
Does not meet: Systems and/or practices related to the PE are not in place (all Validation Guidance judgment criteria are not met) or there is no evidence thereof
N/A: Not applicable
2. Items that fell under “does not meet,” the reasons for the differences compared to “meets,” and future initiatives• PE1.5: Political contributions
Data on political contributions are not disclosed. We will consider the possibility of disclosing this information in the future• PE 7.1: Operations in World Heritage sites
There is no clear policy for the Group regarding the exploration and development of mines in World Heritage sites, so. we will consider such a policy. Currently, the Group does notconduct any mining exploration or development in the World Heritage sites

expenditure over time could help public debate and inform choice ofappropriate and realistic options for sustainable development.

1302

accountability in public life, government operations and in business.
closure of payments and revenues is required, which is simple to undertake and to use.
11 We believe that payments’ disclosure in a given country should involve

all extractive industry companies operating in that country.
12 In seeking solutions, we believe that all stakeholders have importantand relevant contributions to make—including governments and theiragencies, extractive industry companies, service companies, multilateralorganisations, financial organisations, investors, and non-governmentalorganisations.

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

131Social Social

Engagement with Stakeholders

International Council on Mining and Metals’ (ICMM) Performance Expectations (PEs)
Self-Assessment

Items

3.1

3.2

Avoid the involuntary physical or economic displacement of families and communities. Where this is not possible apply
the mitigation hierarchy and implement
actions or remedies that address residual
adverse effects to restore or improve livelihoods and standards of living of displaced people.

 FY2022 Self-Assessment Result (Toyo Smelter & Refinery)

1.1

Assessment Summary

Implementation Evidence and Gaps

Partially Meets

Our group has the “Sumitomo Metal Mining Group Policy on
Human Rights” as a policy commitment to avoid causing orcontributing to adverse human rights impacts from operational activities or from activities directly linked to the operations, products or services by business relationships. While weare delivering human rights training to all employees, including those in the group, we were not able to provide evidence
for mechanisms to communicate negative human rights
impacts in an appropriate manner to potentially impacted
neighboring inhabitants, nor for company-wide due diligencefor human rights.

Partially Meets

As the development plan for the Toyo Smelter & Refinery
started before 2001 (before the start of the ICMM), assessment
related to the involuntary resettlement plan for the Toyo
Smelter & Refinery is not applicable. A development planrequiring involuntary resettlement has not been implemented
for the Toyo Smelter & Refinery from 2001 and after.
At present, we have not drafted a policy statement covering
the avoidance of involuntary resettlement to the extent
possible.

Partially Meets

We are delivering human rights training to security personnel.
Incidents between security personnel and neighboring inhabitants are recorded in a security record.
We were not able to present evidence that we were implementing an approach to security and human rights (including
a human rights risk assessment) that was in line with theVoluntary Principles on Security and Human Rights, nor were
we able to present evidence of consultations related to security and human rights that had taken place with stakeholders(neighboring inhabitants) who were potentially affected.

Meets

Our recruitment process employs those who have graduatedhigh school, so we do not employ child labour or assign hazardous/dangerous work to those under 18.
Our group has labour contracts that are based on the consent
of the labourers as evidence that forced labour and humantrafficking are not occuring.
Our group has the internal “Human Rights Regulations” as amechanisms to identify, assess, and eliminate potential
employment and human rights risks related to harassment
and discrimination.
Our group has a collective labour agreement as a mechanism
to respect the right to freedom of association and collective
bargaining.
Our group has a “Grievance Redressal Council” as a mechanism
to enable workers’ grievances to be brought forward andaddressed.

Apply ethical business practices and sound systems of corporate governance and transparency to support sustainable development.

Establish systems to maintain compliancewith applicable law

Meets

A mechanism we have to identify relevant legal requirements
is a monthly newsletter sent to all employees that contains
information on laws and regulations that were revised in theprevious month. This newsletter is a product of Sumitomo
Metal Mining Co., Ltd.’s legal department. Our group has “The
Basic Compliance Regulations” as a mechanism to track, assess,
implement and communicate changes to relevant legal
requirements. When a compliance violation has been
detected at the Toyo Smelter & Refinery, countermeasures toprevent reoccurrence shall be evaluated by the legal division
with jurisdiction and the details shall be reported to
Sumitomo Metal Mining Co., Ltd.’s board of directors.
Our group has “The Basic Policies for Anti-Bribery” as a policy
related to the prevention of bribery and corruption. Whilefacilitation payments are stipulated as being handled in thesame manner as the provisioning of standard benefits, wehave not disclosed specific details.
Additionally, while training is delivered to employees on policies and prohibited practices, we were not able to provide evidence that training was being implemented for contractors.

1.2

Implement policies and practices to prevent bribery and corruption, and to publicly disclose facilitation payments.

1.3

Implement policies and standards consistent with the ICMM policy framework.*

—

—

1.4

Assign accountability for sustainability
performance at the Board and/or
Executive Committee level.*

—

—

1.5

Disclose the value and beneficiaries offinancial and in-kind political contributions whether directly or through anintermediary.*

—

—

2

Integrate sustainable development in company strategy and decision-making processes.

2.1

Integrate sustainable development principles into corporate strategy and decision-making processes relating toinvestments in the design, operation andclosure of facilities.*

2.2

132

Performance Expectation

Support the adoption of responsible
health and safety, environmental, humanrights and labour policies and practices
by joint venture partners, suppliers andcontractors, based on risk.

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

Partially Meets—

Partially Meets

3.3

Implement, based on risk, a human rights
and security approach consistent with
the Voluntary Principles on Security and
Human Rights.

3.4

Respect the rights of workers by: notemploying child or forced labour; avoiding human trafficking; not assigning hazardous/dangerous work to those under18; eliminating harassment and discrimination; respecting freedom of associationand collective bargaining; and providing
a mechanism to address workers
grievances.

3.5

Remunerate employees with wages that
equal or exceed legal requirements or
represent a competitive wage within thatjob market (whichever is higher) andassign regular and overtime working
hours within legally required limits.

Meets

Our group has labour contracts as contracts related to
employee compensation.
We monitor working hours and check against statutory working hours.
Our group has internal regulations for personnel evaluations
and achievement level evaluations as evidence related tomechanisms to demonstrate implementation of fair
remuneration.

3.6

Respect the rights, interests, aspirations,culture and natural resource-based livelihoods of Indigenous Peoples in project
design, development and operation;
apply the mitigation hierarchy to address
adverse impacts; and deliver sustainable
benefits for Indigenous Peoples.

Not Applicable

We determined that this was “Not applicable,” as the area used
for the construction of the Toyo Smelter & Refinery had noindigenous people.

—

Our group has the “SMM Group’s Sustainable Procurement
Policy” as a policy in place to define company expectations in
the value chain with respect to health and safety, environmental, human rights and labour practices.
We ask that all of our primary suppliers and contractors consent to the “SMM Group’s Sustainable Procurement Policy” as ameans to promote health and safety, environmental, humanrights and labour performance.
We were not able to submit evidence that we had mechanisms in place, based on risk, to support the health and safety,
environmental, human rights and labour performance ofpartners.

Implementation Evidence and Gaps

Support the UN Guiding Principles on
Business and Human Rights by developing a policy commitment to respecthuman rights, undertaking human rights
due diligence and providing for or cooperating in processes to enable the remediation of adverse human rights impacts
that members have caused or contributed to.

We implemented a PEs self-assessment for the Toyo Smelter & Refinery in FY2022 as shown below and underwent third-party validation in FY2022.

1

Assessment Summary

Respect human rights and the interests, cultures, customs and values of employees and communities affected by our activities.

FY2022 Asset Level Report (Toyo Smelter & Refinery)

Items

Performance Expectation

3

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Social Social

Engagement with Stakeholders

Items

Performance Expectation

3.7

Work to obtain the free, prior andinformed consent of Indigenous Peoples
where significant adverse impacts arelikely to occur, as a result of relocation,
disturbance of lands and territories or of
critical cultural heritage, and capture theoutcomes of engagement and consent
processes in agreements.

3.8

4

4.1

4.2

4.3

134

Assessment Summary

Implement policies and practices torespect the rights and interests of womenand support diversity in the workplace.

Implementation Evidence and Gaps

Not Applicable

We determined that this was “Not applicable,” as the area used
for the construction of the Toyo Smelter & Refinery had noindigenous people.

Meets

Our group has salary regulations as evidence that our standards governing employment and compensation are basedon objective criteria and are not discriminatory based on gender or other social or economic criteria.
For employment and compensation for the company, including the Toyo Smelter & Refinery, data on the ratio of female
managers, the ratio of female employees, the ratio of maleand female employees taking childcare leave, and the employment and turnover rate for male and female employees is disclosed in our Integrated Report.

Items

Assess environmental and social risks andopportunities of new projects and of significant changes to existing operations in
consultation with interested and affectedstakeholders, and publicly disclose
assessment results.

Undertake risk-based due diligence on
conflict and human rights that aligns
with the OECD Due Diligence Guidanceon Conflict Affected and High Risk Areas,
when operating in, or sourcing from, aconflict-affected or high-risk area.

Implement risk-based controls to avoid/
prevent, minimise, mitigate and/or remedy health, safety and environmental
impacts to workers, local communities,
cultural heritage and the natural environment, based upon a recognised international standard or management system.

Meets

Meets

The Toyo Smelter & Refinery is enacting due diligence toensure that the sourcing of copper is in line with the responsible sourcing requirements of the London Metal Exchange andthat the sourcing of gold and silver is in line with the guidances of the London Bullion Market Association.

Meets

The Toyo Smelter & Refinery conducts management of occupational health and safety based on ISO45001 and implements an environmental management system based on
ISO14001.
Our group has “Risk Management System Regulations” and“Environmental Management Regulations” as evidence that
we implement risk-based controls to avoid/prevent, minimise,
mitigate and/or remedy health, safety and environmental
impacts to workers, local communities, cultural heritage andthe natural environment, and minimise or compensate foradverse impacts .

4.4

Develop, maintain and test emergency
response plans. Where risks to external
stakeholders are significant, this should
be in collaboration with potentiallyaffected stakeholders and consistent withestablished industry good practice.

5

Pursue continual improvement in health and safety performance with the ultimate goal of zero harm.

5.1

Implement practices aimed at continually
improving workplace health and safety,
and monitor performance for the elimination of workplace fatalities, serious
injuries and prevention of occupational
diseases, based upon a recognised international standard or management
system.

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Meets

Meets

Our group has internal regulations such as the “RiskManagement Regulations,” “Business Continuity Plan” and“Emergency Response Procedure” as evidence of emergency
response plans that include the identification of foreseeable
hazards and risks that could lead to emergency situations.

The Toyo Smelter & Refinery conducts management of occupational health and safety based on ISO45001.
Our group has internal regulations such as the “Regulations for
Security, Safety and Occupational Health Management” as amechanism to identify, assess, eliminate (if possible), or control
the health and safety hazards and occupational diseases at theasset.

Assessment Summary

Implementation Evidence and GapsMeets

Our group has internal regulations such as the “Regulations for
Security, Safety and Occupational Health Management” as amechanism in place for identifying and implementing healthand safety training for employees that is aligned with their job
responsibilities.
Our group’s internal regulations such as the “Regulations for
Safety and Sanitation” identify the activities, materials and processes to which employees are exposed, and the procedures
to follow when exposure levels are exceeded.

5.2

Provide workers with training in accordance with their responsibilities forhealth and safety, and implement healthsurveillance and risk-based monitoring
programmes based on occupational
exposures.

6

Pursue continual improvement in environmental performance issues, such as water stewardship, energy use and climate change.

6.1

Plan and design for closure in consultation with relevant authorities and stakeholders, implement measures to address
closure-related environmental and social
aspects, and make financial provision to
enable agreed closure and post-closurecommitments to be realized.

Not Applicable

We determined that this was “Not applicable,” as the asset does
not have mines or tailing dams.

6.2

Implement water stewardship practices
that provide for strong and transparent
water governance, effective and efficientmanagement of water at operations, andcollaboration with stakeholders at acatchment level to achieve responsible
and sustainable water use.

Meets

We are monitoring water intake amounts, effluent amounts
and contaminants at the Toyo Smelter & Refinery.
We report to the authorities on the compliance with applicable requirements based on the Water Pollution Control Law,
which serves as evidence of stakeholder engagement onwater management at the catchment level.

6.3

Design, construct, operate, monitor anddecommission tailings disposal/storage
facilities using comprehensive, risk-based
management and governance practices
in line with internationally recognised
good practice, to minimise the risk of catastrophic failure.

Not Applicable

We determined that this was “Not applicable,” as the asset does
not have tailing facilities.

Meets

We implement an environmental management system at the
Toyo Smelter & Refinery based on ISO14001.
Our group has internal regulations such as the “Environmental
Management Regulations” and “Waste Management
Regulations” as mechanisms to identify, assess, and control
sources of potential pollution and their impacts on humanhealth and the environment.
As substantive mechanisms in line with mitigation hierarchy,
we control waste by recycling water used in processes and byinvesting resources that are not useable in one process inanother.

Meets

The Toyo Smelter & Refinery reports energy usage to
Sumitomo Metal Mining Co., Ltd. based on internal “Energy
Management Regulations.” Sumitomo Metal Mining Co., Ltd.
calculates the group’s CO2 emissions using emission factorsthat are based on the “Act on Promotion of Global WarmingCountermeasures” and discloses them in its Integrated Report.

Implement effective risk-management strategies and systems based on sound science and which account for stakeholder perceptions of risks.
As the development plan for the Toyo Smelter & Refinery
started before 2001 (before the start of the ICMM), assessment
related to the Environmental Impact Assessment (EIA) for the
Toyo Smelter & Refinery is not applicable.
From 2001 onwards, the “Toyo Smelter & Refinery Sulfuric Acid
Equipment Reinforcement Plan” was a development planrequiring an EIA by Japanese law. Evidence that the EIA was
submitted to Ehime Prefecture and that procedures were finished is available on the Ehime Prefecture website. (https://www.pref.ehime.jp/kankyou/k-hp/theme/assessment/jokyo/
sumikin.html)

Performance Expectation

6.4

Apply the mitigation hierarchy to prevent
pollution, manage releases andwaste,and address potential impacts onhuman health and the environment.

6.5

Implement measures to improve energy
efficiency and contribute to a low-carbon
future, and report the outcomes basedon internationally recognised protocols
for measuring CO2 equivalent (GHG)
emissions.

7

Contribute to the conservation of biodiversity and integrated approaches to land-use planning.

7.1

Neither explore nor develop new minesin World Heritage sites, respect legallydesignated protected areas, and designand operate any new operations orchanges to existing operations to becompatible with the value for which suchareas were designated.

7.2

Assess and address risks and impacts tobiodiversity and ecosystem services byimplementing the mitigation hierarchy,
with the ambition of achieving no-netloss to biodiversity.

Not Applicable

We determined that this was “Not applicable,” as there are nolisted World Heritage sites in the area surrounding the asset.

Meets

We implement an environmental management system at the
Toyo Smelter & Refinery based on ISO14001.
Our group has an “Environmental Management Program” thataims to minimize the effect on water and the atmospherebased on the Act on Special Measures Concerning
Conservation of the Environment of the Seto Inland Sea as aprogramme in place to identify and assess potential adverse
impacts to biodiversity and ecosystem services.

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Social Social

Engagement with Stakeholders

Items

136

Performance Expectation

Assessment Summary

Implementation Evidence and Gaps

8

Facilitate and support the knowledge-base and systems for responsible design, use, re-use, recycling and disposal of products containing metals
and minerals.

8.1

In project design, operation and de-commissioning, implement cost-effective
measures for the recovery, re-use or recycling of energy, natural resources, andmaterials.

Partially Meets

Our group has evidence that sustainable development principles have been integrated into the project design. On theother hand, we were not able to present evidence related tomechanisms to identify and analyse practices to recover, recycle and re-use materials such as natural resources throughout
the life of the asset.

Meets

Internal regulations such as the “SMM Group Chemical
Management Guidelines” exist as evidence that practices arein place to identify, assess and classify the hazards of products
according to the UN Globally Harmonised System of Hazard
Classification and Labelling or equivalent relevant regulatory
mechanism.
We are communicating the hazards of products to stakeholders through safety data sheets for hazardous substances andclearly label containers and packaging with information
regarding hazardous substances.

8.2

Assess the hazards of the products ofmining according to UN Globally
Harmonised System of Hazard
Classification and Labelling or equivalent
relevant regulatory systems and communicate through safety data sheets andlabelling as appropriate.

9

Pursue continual improvement in social performance and contribute to the social, economic and institutional development of host countries andcommunities.

9.1

Implement inclusive approaches withlocal communities to identify their development priorities and support activities
that contribute to their lasting social andeconomic wellbeing, in partnership withgovernment, civil society and development agencies, as appropriate.

9.2

Enable access by local enterprises to procurement and contracting opportunities
across the project life cycle, both directly
and by encouraging larger contractors
and suppliers, and also by supporting initiatives to enhance economic opportunities for local communities.

Meets

Our group has CSR societal contribution activities (tree planting business, business for the promotion and development ofsports, culture and the arts, etc.) as evidence of the implementation of participatory engagement practices to identify, assess
and implement community development activities that
address priorities with the intent that communities can thrive,
including post-closure.

Meets

The Toyo Smelter & Refinery maintains communication minutes with subcontractors (local enterprises implementing
on-premises logistics and maintenance) as evidence of consultation with local communities, to define, identify, communicate and promote procurement opportunities for local
enterprises or contractors.

9.3

Conduct stakeholder engagement based
upon an analysis of the local context andprovide local stakeholders with access toeffective mechanisms for seeking resolution of grievances related to the company and its activities.

Partially Meets

While we have mechanisms in place for the redressal of grievances from stakeholders, for the implementation of investigations and for grievance processing based on internalreporting, we were not able to present evidence related to“stakeholder mapping based on, for example, type of stakeholder, level of influence, and capacity to engage,” “stakeholder
engagement informed by social, economic and environmental
assessments/baseline studies” and “grievance mechanism fit
for purpose and aligned with the UN Guiding Principles on
Business and Human Rights.”

9.4

Collaborate with government, whereappropriate, to support improvements inenvironmental and social practices of
local Artisanal and Small-scale Mining(ASM).

Not Applicable

We confirmed that this was “Not applicable,”as artisanal andsmall-scale mining does not exist in the local area.

10

Proactively engage key stakeholders on sustainable development challenges and opportunities in an open and transparent manner. Effectively
report and independently verify progress and performance.

10.1

Identify and engage with key corporate-level external stakeholders on sustainable development issues in an open
and transparent manner.*

—

10.2

Publicly support the implementation of
the Extractive Industries Transparency
Initiative (EITI) and compile informationon all material payments, at the appropriate levels of government, by country andby project.

Not Applicable

10.3

Report annually on economic, social andenvironmental performance at the corporate level using the GRI Sustainability
Reporting Standards.*—

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

Items

Performance Expectation

Assessment Summary

10.4

Each year, conduct independent assurance of sustainability performance following the ICMM guidance on assuring
and verifying membership
requirements.*—

Implementation Evidence and Gaps—

Items for which we were not able to disclose evidence will become issues for discussion moving forward* The asset level report is not applicable, as it is a corporate level item

ICMM Mining Principles: Performance Expectations
https://www.icmm.com/en-gb/our-principles/mining-principles/mining-principles
Independent Assurance Report for the FY2022 Asset Level Report (Toyo Smelter & Refinery)
https://www.smm.co.jp/en/sustainability/icmm/pdf/asset_toyo_report_en.pdf—

We determined that this was “Not applicable,” as the asset is
not developing resources in a country in which EITI is
implemented.

—

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Social Social

Research & Development

Intellectual Property

Approach and Policy

Approach and Policy

The SMM Group has four research and development sites and we are engaged in raising our competitiveness by evolving existing technologies while also advancing research and development into next-generation metal smelting and refining technologies and pioneering new materials for carbon neutrality. To
achieve the Vision for 2030, the 2021 3-Year Business Plan* set out (1) promotion of development of newtechnologies and processes to achieve carbon neutrality; (2) business innovation in manufacturing and
R&D divisions through DX (Digital Transformation); and (3) activation of individuals and utilization ofhuman resources, and we are pursuing research and development in these areas.

The SMM Group Code of Conduct includes a basic policy on intellectual property (IP) and its protectionand effective use. Also, its 2021 3-Year Business Plan states that the Intellectual Property Department willclosely cooperate with the business and R&D divisions and promote the utilization of intellectual property
in line with business development.

*

SMM Group Code of Conduct: Handling of Intellectual Property• We will nurture and maintain conscious recognition of the importance of intellectual property as a vital asset of
the Group, and strive toward the creation of such property.
• We will strive to properly protect and effectively use all corporate intellectual properties; we will also respect
intellectual properties of other parties.

2021 3-Year Business Plan
https://www.smm.co.jp/en/ir/management/plan/pdf/220215_setsumeikai_e.pdf

FY2022 Results

Strategy

The Group’s business consists of processes that produce significant direct and indirect emissions of greenhouse gases (GHGs), suchas CO2. As such, in FY2022, we worked to reduce use of neutralizers in existing smelting and refining processes, fix CO2, and develop
next-generation processes for smelting and refining without using fossil fuels with the aim of reducing direct CO2 emissions, andwe obtained the results for proceeding to scale-up testing.
In the area of creating new businesses to support the value chain of the 3-business collaboration in Mineral Resources, Smelting
and Refining, and Materials, our work on the development and demonstration of the storage battery recycling process and thedevelopment and demonstration of high-performance cathode materials for next-generation storage batteries has been adopted
as a part of the Next-generation Storage Battery and Motor Development project under the Green Innovation Fund* of the New
Energy and Industrial Technology Development Organization (NEDO), and we accelerated development toward commercialization.
*

Green Innovation Fund
https://www.nedo.go.jp/news/press/AA5_101535.html

Strategy
In the materials field, we will continue to develop high func Research and Development Expenses
tionality and new products for battery materials, powder mate(¥ billions)10
rials, and crystal materials. In the field of battery cathodematerials, regarded as a growth market, alongside develop8
ment to improve performance, we will develop next-generation battery materials, including solid-state batteries, and new
6
processes that will help to improve productivity.
Under the Vision Co-Creation Partnership with Tohoku
4
University aimed at creating innovative materials in thelead-up to 2050, we established the Tohoku University GX
2Materials Science Co-Creation Research Center on October 1,
2022 in partnership with the Tohoku University Advanced0Institute for Materials Research to accelerate exploration of(FY) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
R&D themes. Through the exploration of R&D themes at the
research center, we will develop young engineers. We will also focus on the development of photocatalyst materials for use in artificial
photosynthesis for CO2 recycling and hydrogen production and materials related to energy-saving and energy harvesting with theaim of realizing carbon neutrality.
In formulating the Vision for 2030, we discussed how we will create materials without damaging the global environment in the worldof 2050 or 2100 and what the non-ferrous metals industry should be like in order to achieve this goal. In terms of the medium-term outlook, we will be closely watching how the world changes and transforms by 2030, and we will work to respond rapidly in step with thischange and transformation and make effective use of non-ferrous metal resources. In terms of concrete initiatives in the smelting andrefining field, we are pursuing research and development related to next-generation nickel smelting and refining processes and lithiumrefining processes to significantly reduce GHG emissions. We are also exploring R&D themes that solve the social needs presented in the
Vision for 2030 while continuing to develop improvements in resource exploration, mining, and mineral processing technologies.

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We are working on four major areas: improving intellectual property capabilities, establishing a patent portfolio, promoting the useof patent searches and patent information analysis, and developing an infrastructure for intellectual property activities. In particular,
we ensure that the intellectual property strategies we have formulated are implemented in conjunction with the business strategies of our priority businesses and projects. We are using education and training to promote the development of human resources
and IP awareness to execute the strategies, and we are establishing an IP rights management system that includes protection of
inventors’ rights and handling of other parties’ IP rights. In terms of brand protection, we promote the use of trademarks and takeappropriate measures against counterfeit products (patent infringement).

Promotion Structure
The Company’s intellectual property activities are undertaken by the Intellectual Property Department of the Technology Division,
each business division, and each department, such as research laboratories, and are under the supervision of the General Managerof the Technology Division (executive officer). Each division has one person responsible for patents, for a total of 10 people, andpromotes intellectual property activities. Twice a year, the Intellectual Property Department and the people responsible for patentshold meetings to discuss strategies and management systems related to patents, and other matters, and to monitor these activities.
Under the supervision of the person responsible for patents, each division is in charge of intellectual property-related work, suchas the development of patent strategies for each product or research theme, patent searches, and evaluation responses. The
Intellectual Property Department is in charge of formulating Group-wide strategies, establishing and maintaining a patent management system, human resource development, etc., and promotes intellectual property activities in cooperation with each division by
providing support in establishing patent strategies, conducting patent searches, establishing a patent portfolio, and effectively
using Group patent rights, etc.
 Promotion Structure
President

Technology Division

Engineering Division

Business Divisions
Mineral Resources Division

Niihama Research Laboratories
Intellectual Property Department

Support

Non-Ferrous Metals Division

Battery Research Laboratories

Battery Materials Division

Materials Laboratories

Advanced Materials Division

Ichikawa Research Center
Computer Aided Engineering andDevelopment Department
Analytical Technology Department: indicates 1 person responsible for patents

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Social Social

Intellectual Property

Education about Intellectual Property
With the aim of preventing copyright law violations in daily operations, in FY2022 we provided all employees with education on
intellectual property law and Copyright Act through e-learning. As part of the training program, new technical employees are educated on basic intellectual property matters, the patent system, and our management system. For employees in their second andlater years of employment, we provide more specific knowledge on patents, drafting of specifications, technical contracts, etc. For
employees in management positions, we conduct case studies (group discussions) on technical contracts, lectures by outside
experts, etc., depending on the level of the employee.

Rewards for Invention
We have established Regulations for the Management of Patents, etc. in accordance with the Patent Act, and provide monetary
rewards for employee inventions made in the course of their duties, both when applying for a patent and when contributing to thebusiness. The Company does not set a limit on the amount of rewards to be paid for inventions that contribute to the business,they are based on performance thereby motivating employees to create valuable inventions.

Number of Patents
We are establishing and expanding our patent portfolio by promoting patent applications for inventions created from our businessactivities and research and development. In recent years, we have particularly increased the number of patents related to ourMaterials Business (battery materials business and advanced materials business). In addition, the number of patent applications we
filed in 2021 was 382, the largest number among the member companies of the Japan Mining Industry Association.
 Number of Patents held by the Group Percentage of Patents by Region (FY2022)

6,000

 Japan59.0%
 Asia19.7%
 North America
9.7%
 Europe
8.3%
 Oceania
2.5% Central & South America, Middle
East, Africa
0.8%

5,000
4,000
3,000
2,000
1,000
0
(FY) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

 Mineral Resources Smelting & Refining Materials

 Corporate

External Recognition
At the National Commendation for Invention 2018 (sponsored by the Japan Institute of Invention and Innovation), which aims toencourage and foster inventions and contribute to the improvement of science and technology in Japan and the promotion ofindustry, we were awarded the Keidanren Chairman’s Award in recognition of our invention of the “Hydrometallurgical process ofnickel oxide ore*”, and our achievement in commercializing this process to recover nickel and cobalt from low grade nickel oxideore by HPAL technology.
* Patent number 4525428

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Social Social

Social Data

Employees’ Occupational Health and Safety

Work-Related Ill Health

GRI 403-10
Scope*

Work-Related Incidents

GRI 403-9
Scope1

Work-related
fatalities

Number of
injuries

Business sites inJapanOverseas business
sites

Frequency
rate2

Business sites inJapanOverseas businesssites

Work-related
injuries resulting
in disability

Number of
injuries

Business sites inJapanOverseas business
sites

Frequency
rate2

Business sites inJapanOverseas businesssites

Number ofrecordable workrelated injuries

Number of
injuries3

Business sites inJapanOverseas business
sites

Frequency
rate2

Business sites inJapanOverseas businesssites

Cumulative hours
workedBusiness sites inJapanOverseas businesssites

Number of potential incidents6

Business sites inJapanOverseas business
sites

Unit

Employees
Non-employee workers
Employees
Non-employee workers
Employees
Non-employee workers
Employees
Non-employee workers
Employees
Non-employee workers
Employees
Non-employee workers
Employees
Non-employee workers
Employees
Non-employee workers
Employees
Non-employee workers
Employees
Non-employee workers
Employees
Non-employee workers
Employees
Non-employee workers
Employees
Non-employee workers
Employees
Non-employee workers
Employees
Non-employee workers
Employees
Non-employee workers

cases

—

cases

—

cases

—

hours

cases

2018

2019

2020

2021

0
0
0
0
0.00
0.00
0.00
—
0
0
0
0
0.00
0.00
0.00
—
23
9
5
6
1.71
3.29
1.61
—
13,417,350
2,734,000
3,098,667
—
25
8
7
5

1
0
0
0
0.08
0.00
0.00
0.00
0
0
0
0
0.00
0.00
0.00
0.00
14
11
1
6
1.05
4.05
0.35
0.67
13,321,652
2,714,000
2,826,000
8,922,000
26
14
1
2

0
0
0
0
0.00
0.00
0.00
0.00
0
0
0
0
0.00
0.00
0.00
0.00
15
8
0
3
1.13
4.07
0.00
0.28
13,288,058
1,966,000
2,856,000
10,620,000
20
7
0
1

1
1
0
0
0.07
0.50
0.00
0.00
0
0
0
0
0.00
0.00
0.00
0.00
20
8
1
7
1.48
3.99
0.35
0.58
13,528,961
2,004,000
2,870,000
11,980,000
26
7
0
2

2022
0
0
0
0
0.00
0.00
0.00
0.00
0
1
0
0
0.00
0.50
0.00
0.00
24
5
1
3
1.63
2.48
0.31
0.25
14,722,399
2,018,000 4, 5
3,240,000 4
12,158,000 4, 5
40
14
2
6

1. “Employees” includes employees and part-time workers from Group companies
2. Frequency rate calculated per 1,000,000 hours
3. “Recordable work-related injuries” is the total of injuries that required hospital treatment and resulted in absence from work and injuries not resulting in absence from work
4. Estimated based on one person working 2,000 hours per year
5. Total working hours of workers other than employees (those working at regular contractors) based on survey numbers from May of each year. Calculated based on note 4 above
6. The number of minor incidents (visited the hospital but no treatment needed)

Number of cases ofrecordable work-related illhealth

2018

2019

2020

2021

2022

Employees

0

0

0

0

0

Non-employee workers

—

0

0

0

0

Overseas businesssites

Employees

0

0

0

0

0

Non-employee workers

0

0

0

0

0

Business sites inJapan

Employees

0

0

0

0

0

Non-employee workers

—

—

—

0

0

Overseas businesssites

Employees

0

0

0

0

0

Non-employee workers

0

0

0

0

0

Business sites in
Japan

cases

* “Employees” includes employees and part-time workers from Group companies

Work-Related Ill Health (FY2022 results)
Main types of work-related ill health and method ofdetermination

Business sites in Japan

Overseas business sites

As stated in the Japanese occupational health and safety
laws and regulations• Pneumoconiosis• Ionizing radiation injury• Organic solvent poisoning• Damage caused by specified chemical substances (occupational cancer, skin damage, etc.)• Lead poisoning• Vibration-induced damage• Noise-induced hearing loss
• Occupational dental problems (dental erosion, etc.)

As set forth in the Occupational Safety and Health Standards of
the Philippines• Occupational cancer • Hearing loss • Dermatitis• Ionizing radiation injury• Poisoning and sequelae due to chemical substances• Pneumoconiosis • Pneumonia• Vibration-induced damage • Malaria• Asbestos-related diseases, etc.
As set forth in the Law of the People’s Republic of China on thePrevention and Control of Occupational Diseases• Pneumoconiosis and other respiratory diseases • Dermatitis• Hearing loss • Vibration-induced damage • Dental erosion• Chemical poisoning • Radiation injury• Occupational cancer, etc.
As set forth in the Occupational Safety and Health Act (Taiwan)
Labor Insurance Act• Pneumoconiosis • Ionizing radiation injury • Hearing loss
• Vibration-induced damage • Dental erosion • Dermatitis• Poisoning and sequelae due to chemical substances (organic
solvent poisoning, etc.)
As set forth in Vietnamese law• Pneumoconiosis • Lead poisoning• Organic solvent poisoning • Noise-induced hearing loss
• Vibration-induced damage • Skin damage• Occupational cancer

Sources of work-related hazards that lead to work-related
ill health• Dust • Ionizing radiation • Organic solvents• Specified chemical substances • Lead
• Vibrating tools • Noise• Substances that erode the teeth (acids)

Incidents resulting from sources of work-related hazards
leading to work-related ill health and actions taken or
underway to eliminate these hazards using the hierarchy ofcontrols*• No work-related ill health occurred that required treatment• Implementing improvements to working environments atbusiness sites, with Control Class 3 workplaces as a priority,
including Control Class 2 workplaces• Using a risk assessment database of chemical substances toprevent illness—
No work-related ill health occurred that required treatment* Hierarchy of controls: An approach for lowering risk to acceptable levels through prioritization as follows: Elimination of source of risk  Substitution of source of risk  Engineering
controls  Administrative controls  Personal protective equipment
Source: The US National Institute for Occupational Safety and Health (NIOSH)

Work-Related Incidents (2022 results)
Business sites in Japan

Overseas business sites

Main types of work-related incidents

Caught in/between, cut, contact to high or low-temperature, reaction to
motion/improper motion, fall from height, falling to same level, crashed byinjuries

Reaction to motion/improper motion, caught in/between,crashed by, falling to same level

Sources of work-related hazards that could lead todisability, and method of determination

Sources have been classified based on analysis into damage caused by incidents in the past:
1) Heavy loads, 2) chemicals, 3) high-temperatures objects 4) rotating objects,5) electricity, 6) high places, 7) heavy machinery, 8) cylinders, 9) hand tools

Applied based on the results of analysis of incidents in Japan:
1) Heavy loads, 2) chemicals, 3) high-temperatures objects,4) rotating objects, 5) electricity, 6) high places, 7) heavymachinery, 8) cylinders, 9) hand tools

Incidents leading to disabilities and resulting fromsources of work-related hazards, and actions taken
or underway to eliminate these hazards using thehierarchy of controls*

Employees• Heavy loads (resulting in absence from work): Creation of aplatform, installation of a safety fence, and layout change• Heavy loads (not resulting in absence from work): Change
sensors, interlocks, and sequences• High places (resulting in absence from work): measures toprohibit entry to temporary scaffolds, relocation of equipment

N/A

Contractors• High places (resulting in absence from work): Installation of
special stepladder with handrail• Rotating objects (resulting in absence from work): Change
sensors and interlocks

Incidents resulting from other sources of workplace
hazards and actions taken or underway to eliminate
these hazards using the hierarchy of controls*

Number of fatalities as a resultof work-related ill health

Unit

N/A

N/A

* Hierarchy of controls: An approach for lowering risk to acceptable levels through prioritization as follows: Elimination of source of risk  Substitution of source of risk  Engineering
controls  Administrative controls  Personal protective equipment
Source: The US National Institute for Occupational Safety and Health (NIOSH)

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143Social Social

Social Data

Occupational Health and Safety Management SystemGRI 403-1/403-8

SMM Group

Identification of Hazard Sources, Risk Assessment, and Accident Investigation (2022)
SMM Group

Scope1
Workers covered by an Occupational Healthand Safety Management System
Workers covered by an Occupational Healthand Safety Management System subject tointernal audits3
Workers covered by an Occupational Healthand Safety Management System subject tothird party audits and certification
Percentage of business sites with third party
certification5

2018

2019

2020

2021

Business sites in Japan

6,763 (100)6,885 (100)6,849 (100)7,008 (100)6,760 (100) 2, 4

Overseas business sites

1,355 (100)

1,357 (100)

1,431 (100)1,452 (100)

1,644 (100) 2, 4

6,763 (100)6,885 (100)6,849 (100)7,008 (100)6,760 (100)

1,355 (100)

1,357 (100)

1,431 (100)1,452 (100)

1,644 (100)Business sites in Japan

1,620 (24)

1,631 (24)1,837 (27)1,964 (28)2,348 (35)Overseas business sites

45 (3)

89 (6)

90 (6)

99 (7)

98 (6)

16.3

16.3

18.6

20.9

23.1

60.0

60.0

60.0

60.0

50.0

Business sites in Japan
Overseas business sites

Business sites in Japan
Overseas business sites

Unitpeople (%)

%

2022

Business sites in Japan

Overseas business sites

Ongoing improvements to risk
assessment process quality assurance andmanagement systems

Risk assessment has been introduced and we continuously make improvements in regard to risk at businesssites. The effectiveness of whether they contribute to preventing serious accidents is reviewed as appropriate
under the leadership of the Safety & Environment Control
Department.

Risk assessment is being introduced and we continuously
make improvements in regard to risk at business sites. The
effectiveness of these is reviewed as appropriate.

Processes for employees to report hazards
and employee protection methods

We receive reports of hazards from employees throughminor incident reports, morning meetings, informal discussions, etc., and take necessary measures.

We receive reports of hazards from employees throughminor incident report forms, oral reports, etc. and takenecessary measures.

Methods for protecting employees
carrying out work that might lead toillness or injury

In addition to risk assessment, we promote risk avoidance
through methods including various patrols and workobservation. We work to reduce risks through hazard prediction training and mutual attention.

In addition to risk assessment and hazard prediction activities, we reduce risk through methods including
inspections.

Accident investigation andcountermeasures and system
improvement processes

When accidents occur, we consider and deal with eachcase through the accident reporting database which stipulates a process that includes, investigating the characteristics of the hazard source and any background factors,
and formulating countermeasures. Measures tackling thehazard source are handled according to the hierarchy ofcontrols (in the same way as risk assessment, etc.), whichprioritizes measures targeting equipment.

Investigations and countermeasures are implemented inaccordance with systems at each business site includingcase studies and horizontal development. Measures tackling the hazard source are handled according to the hierarchy of controls, which prioritizes measures targeting
equipment.

Regular contractors
Scope1
Workers covered by an Occupational Healthand Safety Management System
Workers covered by an Occupational Healthand Safety Management System subject tointernal audits3

2018

2019

2020

2021

Business sites in Japan

1,367 (100)

1,357 (100)983 (100)

1,002 (100)1,009 (100) 2, 4

Overseas business sites

2,904 (100)4,461 (100)

5,310 (100)5,990 (100)6,079 (100) 2, 4

1,297 (95)

1,333 (98)979 (99)

1,002 (100)

1,000 (99)2,233 (77)3,551 (100)

5,310 (100)5,990 (100)6,079 (100)Business sites in Japan
Overseas business sites

Unitpeople (%)

2022

Workers covered by an Occupational Healthand Safety Management System subject tothird party audits and certification

Business sites in Japan

21 (2)

21 (2)

21 (2)

21 (2)

23 (2)

Overseas business sites

0 (0)

0 (0)

0 (0)

0 (0)

0 (0)

Percentage of business sites with third party
certification6

Business sites in Japan

1

1

1

1

1

—

—

—

—

—

Overseas business sites

companies

1. Includes temporary employees covered by SMM Group occupational health and safety administration
2. Japan: We have built an occupational health and safety management framework as stipulated by the Japanese Industrial Safety and Health Act, formulated policies, targets, andplans, and implemented a one-year PDCA cycle. Activities are carried out for each level of the organization and cover 100% of employees
Overseas:We have built the system in accordance with the occupational health and safety laws and regulations of each country
3. Japan: Internal audits are implemented at each business site in the form of inspections by the business division with jurisdiction, the Safety & Environment Control Department, theBesshi-Niihama District Division Safety & Environment Control Center (Besshi District), or other organizations. The inspections check each business site’s policy, targets, activity plan, and implementation status and check to see if a PDCA cycle is being carried out or not
Overseas: The business division with jurisdiction carries out audits around twice a year in the form of inspections. Dongguan Sumiko Electronic Paste Co., Ltd. carries out an internal
audit each year
4. Workers at business sites covered by safety statistics
5. Results for 2022 are as follows:
Japan: ISO 45001: Nippon Ketjen Co., Ltd.; Hishikari Mine; Hishikari Office, Mining Dept., Sumiko Resources Exploration & Development Co., Ltd.; Niihama Nickel Refinery; Toyo
Smelter & Refinery
Japan Industrial Safety and Health Association (JISHA) OSHMS standards: Numazu Office and Tsukuba Office of N.E. Chemcat Corporation; Shinko Co., Ltd.; Ome District
Division
Overseas: Safety and production standardization (State Administration of Work Safety): Dongguan Sumiko Electronic Paste Co., Ltd.
Safety and production standardization (State Administration of Work Safety): Shanghai Sumiko Electronic Paste Co., Ltd.
Third party audit implemented by the Ministry of Labor: Taiwan Sumiko Materials Co., Ltd.
6. Results for 2022 are as follows:
Japan: JISHA OSHMS standards: Certification acquired by one contractor of Hyuga Smelting Co., Ltd.
While there are cases where some small contractors do not implement checks on the level of internal audits, contracting organizations offer guidance on occupational
health and safety and carry out patrols, inspections, and other measures, and the majority do implement checks on the level of internal audits
Overseas: At Coral Bay Nickel Corporation, internal audits take the form of patrols and contractor safety meetings led by the contracting organization. At Taganito HPAL, contractors
implement internal audits or participate in patrols led by Taganito HPAL

144

SUMITOMO METAL MINING CO., LTD.

GRI 403-2/403-7

Sustainability Report 2023

Regular contractors
Business sites in Japan

Overseas business sites

Ongoing improvements to risk
assessment process quality assurance andmanagement systems

A similar in-house process as the contracting organization
is used. (In some cases, using the contracting organization’s process.)

At Coral Bay Nickel Corporation, some contractors are
introducing risk assessment initiatives such as 10-second
employee hazard prediction, and at Taganito HPAL, someare introducing risk assessment.

Processes for employees to report hazards
and employee protection methods

A framework is in place to ensure implementation of necessary measures and provide reports, either orally or inprescribed forms, in areas such as minor incident andpoints on which to take note.

A framework is in place so that if either the contracting
organization or contractor discovers information such as
minor incident, they will contact each other.

Methods for protecting employees
carrying out work that might lead toillness or injury

In addition to RA, various inspections and patrols are
implemented by the contracting organization and measures are taken as necessary.

Measures implemented center on hazard prediction
activities. Measures such as patrols by the contracting
organization are also implemented.

Accident investigation andcountermeasures and system
improvement processes

A similar process as the contracting organization is used
for accident investigation and countermeasures and system improvement processes. (Also using the accident
reporting database of the contracting organization.)

Either checks are made by the contracting organization
following consideration of the case by the contractor, or
the contracting organization works with the contractor to
implement an investigation, counter measures, andimprovements. Measures tackling the hazard source arehandled according to the hierarchy of controls, which prioritizes measures targeting equipment.

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

145

Social Social

Social Data

Services, Education and Training Related to Occupational Health and Safety (2022)

GRI 403-3/403-5

To ensure that employees have access to information on health and safety and disaster countermeasure services at all times, we
distribute operational guidelines and procedure manuals, hang up bulletin boards, and post on the Company’s intranet.
Item

Contents

Details

Working environment
and work management

Health checkups andexams

We conduct health checkups (general, special, and specific) as stipulated by the Industrial
Safety and Health Act.

Health management

Exposure
countermeasures

In accordance with the Industrial Safety and Health Act, we implement the measuring ofworking environments, wearing of protective equipment, and management of exposure
times.

Provision of occupational physicians
Countermeasuresagainst Infectious
Diseases

Mental health careCommunication with
employees
Equipment, facilities,
and supplies

Education and training
on occupational healthand safety

Disastercountermeasures

In accordance with the Industrial Safety and Health Act, or under contract to an occupational
physician, we provide health guidance, stress checks, etc. which make use of the results ofhealth checkups.

SMM Group

By country
and region

FY2018FY2019FY2020

FY2021

FY2022

people

7,408

7,570

7,797

7,879

7,950

people

5,844

5,905

6,150

6,224

6,085

Male

4,916

4,950

5,120

5,198

5,098

Female

928

955

1,030

1,026

987

1,327

1,429

1,430

1,433

1,504

Male

1,006

1,075

1,068

1,071

1,124

Female

321

354

362

362

380

101

97

102

108

105

Male

61

62

68

76

75

Female

40

35

34

32

30

28

29

27

27

26

Male

13

13

12

12

11

Female

15

16

15

15

15

4

4

4

4

—

Male

1

1

1

1

—

Female

3

3

3

3

—

4

7

4

4

5

Male

2

2

2

2

2

Female

2

5

2

2

3

—

—

—

—

145

Male

—

—

—

—

112

Female

—

—

—

—

33

8

8

7

8

7

Male

6

6

5

6

5

Female

2

2

2

2

2

13

13

13

13

19

Male

12

12

11

11

16

Female

1

1

2

2

3

1

1

1

1

1

Male

1

1

1

1

1

Female

0

0

0

0

0

9

12

13

14

12

Male

4

6

6

6

5

Female

5

6

7

8

7

16

11

4

1

1

Male

14

9

3

0

0

Female

2

2

1

1

1

28

30

26

26

23

Male

21

20

18

18

14

Female

7

10

8

8

9

25

24

16

16

17

Male

22

21

13

13

14

Female

3

3

3

3

3

Japan

(excluding thePhilippines)

peopleChina

TaiwanP.80-85,
P.102-106

ThailandSouth Korea

We collect employee requests and opinions through working environment questionnaires,
inspection tours, and Labor-Management Advisory Committee meetings, and implement
measures based on these requests and opinions.
Various equipment and facilities have been installed to provide a physically and mentally
healthy working environment where employees can spend their time.
Dining halls, break rooms, laundry rooms, bath/shower facilities (for dealing with specified
chemical substances, etc.), first-aid kits and AED, emergency rooms, alcohol detectors, etc.,
accident prevention facilities, stockpile warehouses, company-owned sports facilities/
grounds, company housing/dormitories, external fitness gyms, and spa facilities related to theCompany, etc.

In addition to legally mandated training, the following training is provided.
• Education to foster qualified personnel (e.g., safety managers, industrial counselors)• Hazard simulations, internal workshops, small group activities (e.g., development of occupational accident case studies)• JCO Study Center training, lectures from external instructors (e.g., life-saving and first-aid,
drunk driving prevention)

Vietnam

Australia

North America& Europe
P.84, P.94

Self-defense firebrigadeWe have established a self-defense fire brigade, etc., and have a first-response system in placein the event of a disaster.

Emergency supplies

Each business site prepares emergency supplies such as emergency food and equipment in
preparation for disasters.

CanadaNetherlands

We conduct fire and earthquake evacuation drills at least once a year.

U.S.A.

P.184

We use an external safety confirmation system to quickly confirm the safety of employees
and their families in the event of a disaster. We also conduct safety confirmation drills on aregular basis.

South America

An emergency contact network has been created for the entire Company and each businesssite, and is reviewed on a regular basis.

Brazil

Chile

Peru

Diverse Human Resources / Development and Participation of Human Resources

Average Years of Service, Age, and Annual Compensation
Scope
Average age

Sumitomo Metal Mining Co., Ltd.

Average annual compensation*

peoplepeoplepeoplepeoplepeoplepeoplepeoplepeoplepeoplepeoplepeoplepeople1. Data are as of the end of the fiscal year in each country (including employees on leave), and dispatched employees are recorded in the number of officers and employees of thecompany to which they are dispatched
2. The scope of officers includes directors, Audit & Supervisory Board members, and executive officers (excluding outside directors and Audit & Supervisory Board members) of SMM,
and directors and Audit & Supervisory Board members of consolidated subsidiaries in Japan and overseas* Some revisions have been made to previous years’ figures based on a close examination of historical data

Employee Data

Average years of service

GRI 2-4/2-7/2-9/405-1
Unit

Total

We conduct stress checks in accordance with laws and regulations, set up internal and external hotlines and counseling services, and provide self- and line-care training, etc.

Education beyond
legal requirements

Emergency contact
network

Number of
officers andemployees1, 2Asia & Oceania• We provide financial assistance for tetanus, hepatitis A, hepatitis B, and other vaccinations for
employees on assignment overseas and their accompanying family members, taking into
consideration the prevalence of these diseases in the destination countries.
• We are continuing work from home and online meetings and events as a measure against
COVID-19. In addition to subsidizing the cost of influenza vaccinations through the healthinsurance association, we have also established rules and guidelines for countermeasuresagainst new strains of influenza and other infectious diseases.

Education is provided at the time of new employee training, special education, and training
when starting hazardous or potentially harmful operations, etc.

Safety confirmation



Scope

Philippines

Legally mandated
education

Evacuation drills

Number of Officers and Employees (by country and region)

Unit

FY2018FY2019FY2020

FY2021

FY2022

year

21.1

19.7

19.5

18.9

18.0

age

43.9

43.0

42.7

42.3

41.5

thousand yen

8,195

8,185

7,952

7,878

8,349

*Average annual compensation includes compensation other than base salary, other allowances, and bonuses

146

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

147

Social Social

Social Data

Number of Officers and Employees (by age group and employee category)
Scope
Number of
officers andemployees1

SMM Group

Number offull-time
officers2

Consolidated subsidiaries in Japan
Consolidated subsidiaries overseas
Number of
employees

30–49 years
old

50 years old
and older

30–49 years
old

50 years old
and older

30–49 years
old

50 years old
and older148

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

FY2018FY2019FY2020

FY2021

FY2022

2,456

2,454

2,671

2,659

2,453

421

417

442

453

423

Male

350

353

377

387

366

Female

71

64

65

66

57

1,503

1,480

1,603

1,583

1,414

Male

1,225

1,189

1,273

1,259

1,115

Female

278

291

330

324

299

532

557

626

623

616

Male

465

484

538

527

527

Female

67

73

88

96

89

369

407

419

398

318

FY2022

people

110

105

110

109

105

Male

21

23

25

23

24

Female

0

0

0

0

0

Male

62

56

58

61

57

Female

0

0

0

0

0

Male

27

25

26

24

23

Female

0

1

1

1

1

people

7,298

7,465

7,687

7,770

7,845

people

2,630

2,679

2,699

2,813

2,993

people

487

491

487

470

479

Male

198

237

262

267

211

0

0

0

0

0

Female

171

170

157

131

107

Male

0

0

0

0

0

people

1,537

1,639

1,620

1,630

1,841

Female

0

0

0

0

0

179

171

170

177

198

people

314

299

317

321

315

Male

175

166

164

168

184

63

43

38

31

29

Female

4

5

6

9

14

Male

49

30

28

19

15

308

320

317

293

281

Female

14

13

10

12

14

Male

304

315

312

289

277

227

228

249

260

253

Female

4

5

5

4

4

Male

176

174

182

192

179

1,907

1,933

1,936

2,072

2,246

Female

51

54

67

68

74

427

429

490

584

688

24

28

30

30

33

Male

349

351

388

468

558

Male

17

23

24

23

26

Female

78

78

102

116

130

Female

7

5

6

7

7

1,216

1,324

1,288

1,302

1,509

Total

people

920

952

908

908

938

Male

754

774

733

737

768

Female

166

178

175

171

170

560

552

538

580

620

Male

508

500

477

510

542

Female

52

52

61

70

78

236

255

276

271

268

Male

201

218

237

235

232

Female

35

37

39

36

36

people

3,131

3,147

3,368

3,327

3,011

people

306

286

278

270

240

0

0

0

0

0

0

0

0

0

0

Total

Management staff
Youngerthan 30
years oldUnitpeopleRegular employees

FY2021

Limited-term employees

Consolidated subsidiaries in Japan

Number of
employees

FY2020Regular employees
Youngerthan 30
years old

SMM Group

FY2019Management staff
Youngerthan 30
years old

Scope
Number of
officers andemployees1

FY2018

Total
Sumitomo Metal
Mining Co., Ltd.

GRI 2-4/2-7/2-8/2-9/405-1

Unit

Total
Sumitomo Metal
Mining Co., Ltd.



Male

peopleYoungerthan 30
years old
30–49 years
old

50 years old
and older

Limited-term employees

Consolidated subsidiaries overseas

Total

Management staff
Youngerthan 30
years old
30–49 years
old

50 years old
and older

Regular employees
Youngerthan 30
years old
30–49 years
old

50 years old
and older

SMM Group

Total

people

459

500

429

390

410

Male

306

324

266

245

265

Female

153

176

163

145

145

702

767

814

851

1,032

Male

538

588

631

655

799

Female

164

179

183

196

233

55

57

45

61

67

Male

46

48

37

52

57

Female

9

9

8

9

10

7

16

15

7

17

Male

4

15

13

6

15

Female

3

1

2

1

2

481

464

495

538

438

Limited-term employees

Temporaryemployees

peoplepeoplepeople

0

0

0

0

0

Sumitomo Metal Mining Co., Ltd.

175

185

163

182

204

97

85

90

92

82

Consolidated subsidiaries in Japan

274

251

331

355

234

Male

95

83

88

89

80

Consolidated subsidiaries overseas

32

28

1

1

0

Female

2

2

2

3

2

Female

209

201

188

178

158

Male

209

201

188

178

157

Female

0

0

0

0

1

1. Data are as of the end of the fiscal year in each country (including employees on leave), and dispatched employees are recorded in the number of officers and employees of thecompany to which they are dispatched
2. The scope of officers includes directors, Audit & Supervisory Board members, and executive officers (excluding outside directors and Audit & Supervisory Board members) of SMM,
and directors and Audit & Supervisory Board members of consolidated subsidiaries in Japan and overseas* Some revisions have been made to previous years’ figures based on a close examination of historical data

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Sustainability Report 2023

149

Social Social

Social Data

New Hires and Departures (by hiring type and reason for departure)1
Scope
New hires anddepartures

Sumitomo Metal
Mining Co., Ltd.

New hires

Total
New
graduates

Total

GRI 401-1
Unit

FY2018FY2019FY2020

FY2021

FY2022

people

158

128

176

223

284

people

61

48

107

132

128

23

35

32

55

46

Managerial track employees
Of which are womenCore track

4

4

7

11

6

38

13

75

77

82

9

7

22

21

10

97

80

69

91

156

Managerial track employees

11

26

19

31

62

Of which are women

2

5

0

3

4

86

54

50

60

94

12

8

11

3

17

52

66

55

50

68

34

54

39

41

56

Of which are women
Mid-career
hires

Total

peopleCore track
Of which are women
Departures Number of
departures

Total

peopleDeparted for personal reasons
Of which are women

8

8

10

8

8

Departed for company-related reasons

1

0

2

0

6

Other2

17

12

14

9

6

Scope
New hires anddepartures

SMM Group

Philippines

Unit

Total

Youngerthan 30
years oldMale

Female30–49
years oldMale

Female50 years
old and
older

Male

GRI 401-1
Scope

New hires anddepartures

Unit

Total

FY2018FY2019FY2020

FY2021

FY2022

348
(5.2)

401
(5.9)

343
(4.9)

394
(5.6)

594
(8.2)

185
(2.8)

179
(2.6)

233
(3.3)

196
(2.8)

326
(4.5)

247
(4.8)

251
(4.9)

299
(5.6)

353
(6.5)

431
(8.0)

112
(2.2)

117
(2.3)

191
(3.6)

161
(2.9)

223
(4.1)

New hires

128(18.3)

117(16.6)

142(18.6)

196(22.9)

239(25.9)

Departures

40
(5.7)

29
(4.1)

24
(3.1)

41
(4.8)

43
(4.7)

New hires

20(13.4)

27(19.0)

46(27.5)

42(23.1)

40(21.4)

Departures

6
(4.0)

13
(9.2)

7
(4.2)

7
(3.8)

11
(5.9)

New hires

79
(3.5)

71
(3.2)

68
(3.0)

87
(3.9)

114
(5.3)

Departures

42
(1.9)

49
(2.2)

40
(1.8)

37
(1.6)

46
(2.1)

New hires

16
(3.6)

30
(6.3)

28
(5.5)

11
(2.2)

12
(2.5)

Departures

7
(1.6)

19
(4.0)

9
(1.8)

10
(2.0)

20
(4.1)

New hires

3
(0.2)

5
(0.3)

11
(0.7)

15
(1.0)

22
(1.5)

Departures

15
(1.0)

6
(0.4)

104
(6.9)

62
(4.1)

97
(6.5)

New hires

1
(0.8)

1
(0.8)

4
(2.6)

2
(1.2)

4
(2.3)

Departures

2
(1.6)

1
(0.8)

7
(4.5)

4
(2.4)

6
(3.5)

New hires
Departures

SMM Group

Japan

Total

New hires
Departures

Youngerthan 30
years oldMale

Female30–49
years oldMale

Female50 years
old and
older

Male

Female150

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

people(%)2people(%)

FY2020

FY2021

FY2022

134
(9.5)

44
(3.1)

28
(2.0)

151
(10.2)

67
(5.1)

57
(4.0)

42
(3.0)

23
(1.6)

86
(5.8)

New hires45(13.6)

76(22.8)

19
(6.9)

10
(4.2)

62
(26.8)

Departures

40(12.0)

30
(9.0)

18
(6.6)

8
(3.3)

16
(6.9)

New hires

20(13.3)

27(15.4)

15
(9.3)

5
(3.4)

38
(24.8)

Departures

9
(6.0)

4
(2.3)

8
(5.0)

4
(2.7)

17
(11.1)New hires

14
(2.2)

22
(3.3)

9
(1.2)

13
(1.7)

44
(5.5)

Departures

15
(2.4)

19
(2.8)

10
(1.4)

9
(1.2)

40
(5.0)

New hires

3
(1.9)

5
(2.9)

0
(0.0)

0
(0.0)

3
(1.4)

Departures

1
(0.6)

3
(1.7)

4
(2.1)

1
(0.5)

9
(4.1)

New hires

0
(0.0)

4
(8.3)

1
(2.4)

0
(0.0)

4
(6.1)

Departures

2
(5.3)

1
(2.1)

2
(4.8)

1
(1.8)

4
(6.1)

New hires

0
(0.0)

0
(0.0)

0
(0.0)

0
(0.0)

0
(0.0)

Departures

0
(0.0)

0
(0.0)

0
(0.0)

0
(0.0)

0
(0.0)

4
(3.0)

3
(2.2)

0
(0.0)

12
(8.6)

12
(4.4)

0
(0.0)

1
(0.7)

0
(0.0)

11
(7.9)

17
(6.2)

New hires

0
(0.0)

0
(0.0)

—

8
(44.4)

9(19.6)

Departures

0
(0.0)

0
(0.0)

—

5
(27.8)

8(17.4)New hires3(21.4)

0
(0.0)

—

0
(0.0)

0
(0.0)

Departures

0
(0.0)

0
(0.0)

—

0
(0.0)

2
(40.0)New hires

1
(2.4)

0
(0.0)

—

3
(5.2)

2
(1.4)

Departures

0
(0.0)

1
(2.2)

—

5
(8.6)

6
(4.3)

New hires

0
(0.0)

3
(6.0)

—

1
(2.1)

1
(1.4)

Departures

0
(0.0)

0
(0.0)

—

1
(2.1)

1
(1.4)

New hires

0
(0.0)

0
(0.0)

—

0
(0.0)

0
(0.0)

Departures

0
(0.0)

0
(0.0)

—

0
(0.0)

0
(0.0)

New hires

0
(0.0)

0
(0.0)

—

0
(0.0)

0
(0.0)

Departures

0
(0.0)

0
(0.0)

—

0
(0.0)

0
(0.0)

New hires

FemaleNew Hires and Departures (by region) 

FY201982(6.2)

Departures

1. Data are as of the end of each fiscal year (excluding directors, limited-term employees, and temporary employees)
2. Other: departures due to having reached mandatory retirement age, death, expiration of leave of absence, etc.

1

FY2018Asia & Oceania3

Total

New hires(excluding thePhilippines)

Departures
Youngerthan 30
years oldMale

Female30–49
years oldMale

Female50 years
old and
older

Male

Femalepeople(%)

people(%)

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

151

Social Social

Social Data

Scope
New hires anddepartures

SMM Group

North America &Europe4

Unit

Total

New hires
Departures

Youngerthan 30
years oldMalepeople(%)

New hires
Departures

FemaleNew hires

Male

New hires
Departures

FemaleMale

New hires
Departures

FemaleNew hires
Departures

South America5

Total

New hires
Departures

Youngerthan 30
years oldMale

Female30–49
years oldMale

Female50 years
old and
older

Male

FemaleFY2020

FY2021

FY2022

0
(0.0)

0
(0.0)

1
(4.2)

0
(0.0)

0
(0.0)

0
(0.0)

0
(0.0)

1
(4.2)

0
(0.0)

—

—

—

0
(0.0)

—

—

—

—

0
(0.0)

—

—

—

—

0
(0.0)

—

0
(0.0)

—

people
(%)

—

—

—

—

—

1
(8.3)

—

—

—

—

0
(0.0)

—

0
(0.0)

—

—

New hires
Departures

50 years
old andolder

FY20190(0.0)—

Departures
30–49
years old

FY2018

—

—

—

—

—

0
(0.0)

—

—

—

—

0
(0.0)

—

—

—

—

1
(50.0)

—

—

—

—

0
(0.0)

—

—

—

—

0
(0.0)

—

15
(23.4)

13(21.7)

0
(0.0)

0
(0.0)

0
(0.0)

6
(9.4)

4
(6.7)

0
(0.0)

0
(0.0)

0
(0.0)

2
(33.3)

3(50.0)—

Departures

1(16.7)

0(0.0)—

New hires

2(100.0)1(20.0)———

Departures

0
(0.0)

1
(20.0)———New hires

8(23.5)

6(19.4)———

Departures

2
(5.9)

1
(3.2)

—

—

—

New hires

0
(0.0)

1
(16.7)———

Departures2(28.6)

1(16.7)———

3(25.0)

2(25.0)———

Time Spent on and Investment in Employee Education
Total time spenton employee
education1

Sumitomo Metal
Mining Co., Ltd.

Total

Departures

1
(8.3)

1
(12.5)———New hires

0
(0.0)

0
(0.0)

—

—

—

Departures

0
(0.0)

0
(0.0)

—

—

—

FY2019FY2020

FY2021

FY2022hours

36,051

99,740119,221

188,913131,106 2

hours

638

281

324

368

79

638

281

324

368

Female

0

0

0

0

0

6,718

16,144

19,653

17,257

16,375

Male

6,566

15,876

19,26817,03815,883

Female

152

268

385

219

491

28,17480,395

93,165

153,038

109,723Male

23,99771,003

81,119135,008

95,756

Female

4,177

9,391

12,04618,03013,967

1,080

2,563

6,122

18,294

4,640

Male

484

2,188

5,013

13,4393,555

Female

596

375

1,109

4,855

1,086

hours

25,643

20,37423,76943,76933,021

hours

hours

Regular employees

hours

Limited-term employees and temporary employees

Total

hours

429

358

342

402

481

Male

429

358

342

402

481

Female

0

0

0

0

0

4,459

1,889

1,838

3,219

2,245

Male

4,447

1,886

1,812

3,153

2,177

Female

12

3

25

66

68

17,352

15,26918,721

34,11526,363Male

15,19013,301

15,76631,08723,011

Female

2,162

1,968

2,955

3,028

3,353

3,404

2,859

2,868

6,034

3,932

Male

2,018

1,747

1,600

4,323

2,434

Female

1,386

1,112

1,268

1,711

1,499

hours

19,31630,17429,54518,323

27,616hours

Officers

Managers

hours

Regular employees

hours

Limited-term employees and temporary employees

Consolidated
subsidiaries
overseas

FY201879

Managers

Consolidated
subsidiaries in
Japan

Unit

Male

Officers——

GRI 2-4/404-1

Scope

—

New hires

New hires—

Human Resources Development

Total

hours

168

144

223

275

312

Male

168

133

215

264

300

Female

0

11

8

11

12

1,421

1,284

1,223

897

1,330

Male

1,044

913

643

562

837

Female

377

371

581

335

493

17,651

28,605

20,79517,08025,684Male

12,58522,573

15,676

12,985

18,252

Female

5,066

6,032

5,120

4,095

7,432

78

141

7,304

70

290

Male

64

80

5,762

47

182

Female

14

61

1,542

23

109

Officers

Managers

hours

Regular employees

hours

Limited-term employees and temporary employees

hours

1. Data are based on the number of employees as of the end of the fiscal year in each country (excluding directors, limited-term employees, and temporary employees)
2. Percentage of new employees: number of new employees ÷ total employees x 100; turnover: number of departures ÷ total employees x 100
3. Asia & Oceania (excluding the Philippines) includes China, Taiwan, South Korea, Thailand, Vietnam, and Australia (FY2022)
4. North America & Europe includes Canada and the U.S. (FY2022)
5. South America includes Peru, Chile, and Brazil (FY2022)

152

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

153

Social Social

Social Data

Scope
Average annual
hours ofeducation per
employee3

SMM Group

Unit

FY2018FY2019FY2020

FY2021

FY2022

Total

hours

10.3

18.7

20.8

29.8

22.9

Officers

hours

6.1

10.9

7.7

9.2

11.1

Male

6.1

10.9

7.7

9.2

11.0

Female

0.0

10.5

8.0

11.0

12.0

11.4

18.0

21.0

20.1

19.3

11.8

18.8

22.0

21.7

20.6

Managers

hours
Male
FemaleRegular employees

hours
Male

Amount ofinvestment ineducation per
employee4

Sumitomo Metal
Mining Co., Ltd.

7.6

10.3

6.0

9.1

21.8

22.5

33.9

26.1

11.4

23.2

23.8

37.0

27.4

11.0

15.8

17.1

21.1

20.4

hours

4.2

4.9

13.5

20.1

8.5

yen

153,000

132,000

90,00098,000107,000

FemaleLimited-term employees and temporary employees

6.6
11.3

Scope
Parental leave

Sumitomo Metal
Mining Co., Ltd.

Use of parental leave1

Utilization of Human Resources
Working Style Reform
Scope
Working hours

Average annual working
hours1, 2

Sumitomo Metal
Mining Co., Ltd.
Annual paid leave

Unit

FY2018FY2019FY2020

FY2021

FY2022hours

1,950.1

1,976.1

1,984.5

1,959.0

1,933.3

Managers

2,016.1

2,015.7

2,024.7

2,021.7

1,994.6

Regular employees

1,930.3

1,964.3

1,972.6

1,941.0

1,913.4

14.7

17.9

17.9

16.1

16.6

1,920

1,920

Total

Average monthly overtime hours worked

SMM Group

1,940 or 1,920

Average annual scheduled working hours
Average annual number of days of paid leave taken

day

18.0

18.3

17.4

17.4

18.2

Percentage of average annual paid leave taken3

%

83.7

86.0

83.2

83.2

87.6

people

2,348

2,453

2,551

2,666

2,801

Average number of days of leave taken

day

2.2

1.9

1.0

—

2.0

Total number of employees who took leavepeople

30

8

1

0

1

Number of enrolled
employees4

1. Average annual working hours = scheduled working hours (excluding leave, paid leave, etc.) + overtime hours
2. The working style reform started in FY2017. In FY2016, there were 1,987.4 hours (managers: 2,076.1 hours, regular employees: 1,960.7 hours)
In FY2017, there were 1,967.3 hours (managers: 2,043.9 hours, regular employees: 1,943.9 hours)
3. Percentage of paid leave taken by employees for the full year (excluding limited-term employees who are specially hired employees)
4. Average of 4 years (excluding limited-term employees who are specially hired employees) FY2016: 2,274 employees; FY2017: 2,317 employees
5. Data cover the period from January to December of each year

Number of employees eligible
for parental leave4

FY2019FY2020

FY2021

FY2022

%

15.6

17.3

26.9

30.0

97.2

Male

1.0

2.9

10.3

20.9

95.6

Female

100.0

100.0

113.3

85.7

106.3

%

75.0

87.0

88.5

81.4

—

people

19

14

25

30

104
87

Total

Total
Male

1

2

8

18

Female

18

12

17

12

17

122

81

93

100

107

Male

104

69

78

86

91

Female

18

12

15

14

16

—

100.0

100.0

100.0

100.0

(1/1)

(5/5)

(15/15)(37/37)

67.0

100.0

94.1

100.0

100.0

(8/8)

(16/17)(16/16)(11/11)

—

100.0

100.0

100.0

(1/1)

(6/6)

(17/17)

Total

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

peopleReturn-to-work rate after leave5 Male

Retention rate after leave6%(people)Male
Female—%(people)

100.0

100.0

100.0

100.0

100.0

(14/14)(12/12)(16/16)(15/15)The percentage of parental leave (female) in FY2022 includes those who gave birth in FY2021 and took parental leave in FY2022, and thus exceeds 100%
1. Until FY2021 the percentage is only for those who took parental leave, but from FY2022 onward, the percentage (male) is for both those who have taken parental leave and those
who have taken leave for child-rearing
2. Childbirth and child-rearing support leave : male employees can take leave to care for and support their spouse after the birth of a child. Seven consecutive days can be taken fromthe day of hospital admission, delivery, or discharge (up to nine days)
3. Male employees: number of employees who took parental leave (starting) in FY2022
Female employees: number of employees who took parental leave (starting) in FY2022
4. Male employees: number of employees who submitted a notification of birth to the Company for birth by their spouse in FY2022
Female employees: number of employees who gave birth in FY2022
5. Return-to-work rate: number of employees who returned to work in FY2022 ÷ number of employees who intended to return to work in FY2022 x 100
6. Retention rate: number of employees who returned to work in FY2021 and were still working at the Company 12 months later ÷ number of employees who returned to work in
FY2021 x 100

Scope
Nursing care leave

Sumitomo Metal
Mining Co., Ltd.

Unit
Number of employees who
took nursing care leave

Total number of days of leave
taken

Average number of days perpersonNursing careshort-term leave

Sumitomo Metal
Mining Co., Ltd.

2018

2019

2020

2021

2022

2

2

2

2

2

Male

0

0

1

2

2

Female

2

2

1

0

0

209

127

259

24

140
140

Total

Total

people

day

Male

0

0

173

24

Female

209

127

86

0

0

104.5

63.5

129.5

12.0

70.0

Total

day

Male

0.0

0.0

173.0

12.0

70.0

Female

104.5

63.5

86.0

0.0

0.0

21

40

58

70

67

Male

14

27

43

57

52

Female

7

13

15

13

15

85.0

173.0

228.0

288.2

303.5

Male

53.0

110.0

169.9

225.9

239.5

Female

32.0

63.0

58.1

62.3

64.0

4.0

4.3

3.9

4.1

4.5

Male

3.8

4.1

4.0

4.0

4.6

Female

4.6

4.8

3.9

4.8

4.3

Number of employees who
took nursing care short-term
leave

Total

Total number of days of leave
taken

Total

Average number of days perperson154

FY2018Use of leave with pay for child-rearing2 Male
Number of employees who
took parental leave3

GRI 401-3

Unit

FemaleFigures are rounded to the nearest whole number, so totals may not match
1. Data are as of the end of the fiscal year in each country. Education hours cover all training except for routine on-the-job training (so-called OJT) conducted in the workplace by
instructors and other personnel, emergency drills, and small-group activities
2. In addition to the total time spent on education, employees spent the following number of hours on e-learning courses: 5,763 hours for SMM, and 2,012 hours for consolidated subsidiaries in Japan and overseas
3. Average annual hours of education per employee: Total hours of education for all employees ÷ number of officers and employees
4. Amount of investment in education does not include labor costs for on-the-job training and education and training hours (rounded up to the nearest ¥1,000)* Some revisions have been made to previous years’ figures based on a close examination of historical data

Volunteer leave5

Creating Workplaces Where Diverse Human Resources Play Vibrant and Active Roles

Total

peopleday

day

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

155

Social Social

Social Data

Scope
Average score forquestions in theemployeeawareness survey1
Percentage of
positive responses2

Sumitomo Metal
Mining Co., Ltd.

Appeal ofmanagement
measuresAverage score

Unit

FY2018FY2019FY2020

FY2021

FY2022

—

—

3.47

—

3.55

—

Percentage of positive responses

%

—

51.6

—

55.8

—

Appeal ofsupervisors

Average score

—

—

3.56

—

3.69

—

Percentage of positive responses

%

—

57.6

—

64.5

—

Appeal of job

Average score

—

—

3.38

—

3.45

—

Overall appealof workplace

Percentage of positive responses

%

—

50.2

—

53.2

—

Average score

—

—

3.23

—

3.36

—

Percentage of positive responses

%

—

42.6

—

49.6

—

Standard Entry-level Salary to Regional Minimum Wage
Scope
Starting salary

Sumitomo Metal
Mining Co., Ltd.

Sumitomo Metal Officers
Mining Co., Ltd.
Managers

Unit(Managerial track employees)

RegularManagerial track & professional
employees
Core track%

Limited-term employees
Sumitomo Metal Officers
Mining Co., Ltd.
Managers

peopleLimited-term employees
Sumitomo Metal Managerial New graduates
Mining Co., Ltd. track
employees Mid-career hires
Core track

FY2018FY2019FY2020

FY2021

FY2022

3.7

3.4

3.4

3.6

3.4

1.2

1.5

1.5

2.0

2.9

10.9

11.7

12.5

12.9

12.3

15.8

16.2

17.2

17.0

16.9

13.0

12.1

12.1

11.1

11.4

1

1

1

1

1
20

9

11

11

14

46

50

52

57

59

259

267

295

309

329

(Managerial track employees)

RegularManagerial track & professional
employees
Core track
Percentage
of femalerecruits

April 2023

100:100

100:100

100:100

100:100

100:100

168,628

171,128

173,628

173,628

176,628

%

137

134

137

132

129

College oftechnology
graduateMonthly salaryyen

192,158

194,658

197,158

197,158

200,158

Comparison with minimum wage

%

156

152

155

150

147
232,950

Monthly salaryyen

221,850

227,350

229,950

229,950Comparison with minimum wage

%

139

139

142

138

136

Monthly salaryyen

236,290

241,790244,390244,390

250,390

Comparison with minimum wage

%

148

148

151

147

146

Monthly salaryyen

268,341

272,341

273,541

273,541

281,541

Comparison with minimum wage

%

169

166

169

164

164

GRI 405-2

Scope

Number of
employees

April 2022

* In the comparison of standard entry-level salary to regional minimum wage, Ehime Prefecture is used for the regional minimum wage for high school and technical college graduates, and Tokyo Metropolitan minimum wage is used for university graduates and above
Monthly wages and minimum wage data are as of April 1 of each fiscal year

Gender Balance (women’s active engagement)
Percentageof employees

April 2021

yen

Doctorate
degreeFemaleofficers andemployees1

April 2020

ratio

Male:female base salary

Master’s
degreeDiversity & Inclusion

April 2019

High school Monthly salary
graduate
Comparison with minimum wage

University
graduate

1. Calculated as the average value of responses, with “Very much so” as 5, “Somewhat so” as 4, “Cannot say” as 3, “Not so much” as 2, and “Not at all” as 1
2. Calculated from total responses of “Very much so” and “Somewhat so” among all response options (“Very much so,” “Somewhat so,” “Cannot say,” “Not so much,” and “Not at all”)

GRI 202-1
Unit

36

37

40

37

37

25.8

16.7

20.0

20.9

16.3

20.0

16.2

5.0

11.4

6.3

New graduates

18.2

29.2

29.3

27.6

14.5

Mid-career hires

17.4

13.7

20.3

5.9

17.4

%

Promoting Employment of People with Disabilities
Scope
Employment ofpeople withdisabilities1

Sumitomo Metal
Mining Co., Ltd.

Number of employees with disabilities2
Employment rate of employees with disabilities
Statutory employment rate

GRI 405-1
Unit

June 2019

June 2020

June 2021

June 2022

June 2023

people

68

73

77

79

84

%

2.39

2.50

2.56

2.57

2.59

%

2.20

2.20

2.30

2.30

2.30

1. Data as of June 1 of each fiscal year
2. The number of employees with disabilities is counted by the method of counting in the statutory employment rate calculation method

1. The number and percentage of female employees are calculated with dispatched employees counted under the company from which they were dispatched

Scope
Ratios of Female-to-Male
Base Salary

Sumitomo Metal Employees2
Mining Co., Ltd.

Unit
Managers
Regular employees

femaleto maleLimited-term employees3
Ratios of Female-to-MaleTotal Compensation(annual compensation)4

Sumitomo Metal Employees
Mining Co., Ltd.

Managers
Regular employees

Limited-term employees

femaleto maleFY2018FY2019FY2020

FY2021

FY2022————

100:165

—

—

—

—

100:112

—

—

—

—

100:132

—

—

—

—

100:333

—

—

—

—

100:149 5

—

—

—

—

100:111

—

—

—

—

100:115

—

—

—

—

100:279 6

2. Non-limited-term employees (including employees with short working hours and dispatched employees in Japan, but not including employees dispatched overseas)
3. Limited-term employees (including employees dispatched in Japan, but not including employees dispatched overseas)
4. Includes base salary, overtime pay, allowances for housing, family, commuting, etc., and excludes payments to employees who resigned
5. The main reasons for the compensation difference are that the average length of continuous service for women is 12.8 years (about 6 years shorter than the 18.7 years for men) andthe percentage of women in management positions is 2.9%
6. The main reason for the compensation difference is that the average years of continuous service for women is 11 years, which is 22.6 years less than that of men (33.6 years)

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Social Social

Social Data

Co-Existence and Mutual Prosperity with Local Communities

Maintaining and Improving Employees’ Health
Addressing Mental Health CareGRI 403-6
Scope

Long-term leave

Unit

FY2018FY2019FY2020

FY2021

FY2022

0.51

0.45

0.40

0.37

0.43

97.7

96.1

94.7

95.4

96.8

10.2

11.0

8.7

9.8

10.1

11.8

12.0

11.3

11.8

—

Percentage of employees taking long-term
leave (due to mental health disorders)*

Stress checks
Sumitomo Metal
Mining Co., Ltd.

Percentage of employees receiving stresschecksPercentage of employees with high stress

Investment in Infrastructure and Support Services (cost of social contribution activities)
Japan
Philippines

Scope

Unit

SMM Group¥ billions

Illness Prevention and Health Promotion Initiatives

Scope

GRI 403-6

Scope

Sumitomo Metal
Mining Co., Ltd.

Unit

Percentage of employees receiving complete
medical checkups2
Obesity rate1

FY2018FY2019FY2020

FY2021

FY2022

60.6

56.9

58.9

58.0

58.0

27.4

28.0

24.4

27.3

27.5

%

Male
FemaleSmoking rate3

36.9

37.2

38.7

39.2

38.0

22.8

22.3

23.6

22.1

23.4

28.9

26.9

25.3

24.8

23.9

%

Unit

—

—

—

—

100.0

1. Employees insured by the Sumitomo Metal Mining Health Insurance Association
2. Employees insured by the Sumitomo Metal Mining Health Insurance Association who are 18 years old or older
3. Employees of Sumitomo Metal Mining Co., Ltd., age 40 or older (results of specified health checkup interview)
4. All employees

Scope

Labor union
membership

SMM Group2

GRI 2-30

Unit

FY2018FY2019FY2020

FY2021

FY2022

people

4,310

4,346

4,469

4,582

4,722

Japan

3,506

3,538

3,634

3,712

3,727

Overseas

804

808

835

870

995

55.7

57.5

57.7

58.2

58.8

Japan

59.4

58.7

59.5

59.4

60.2

Overseas

44.0

52.8

51.0

53.7

54.3

Total

Total

Hishikari Mine¥ millions(%)(Kagoshima)

Sumiko Energy
Materials Co., Ltd.
(Fukushima)

Taganito HPAL Nickel
Corporation(Philippines)

Coral Bay Nickel
Corporation%

Shanghai SumikoElectronic Paste Co., Ltd.
(China)Labor-Management Relations (freedom of association and collective bargaining)
SMM Group2(Ehime)4, 5

FY2022

0.10

0.10

0.43

0.09

0.25

1.02

1.03

1.25

1.62

FY2019FY2020

FY2021

GRI 204-1
FY2022

Percentage ofPercentage ofPercentage ofPercentage of
Local
locally-hired
Local
locally-hired
Local
locally-hired
Local
locally-hired
procurement employees procurement employees procurement employees procurement employees

Local Percentage ofprocure- locally-hired
ment2
employees3

12,800(46)

82%

18,300(52)

82%

12,900(54)

84%

15,000(53)

83%

20,924
(58)

82%

1,138
(57)

88%

1,230
(49)

89%

2,220
(53)

89%

1,173
(47)

88%

3,587
(40)

88%

421
(32)

78%

486
(35)

86%

383
(36)

91%

418
(33)

95%

506
(32)

95%

99,000(44)43%109,000(44)

42%

94,000(45)42%104,000(44)

43%

136,000(40)

42%

61,000(43)

58%

69,000(49)

59%

69,000(54)

59%

78,000(51)

59%

92,000
(38)

59%

132
(28)

93%

106
(28)

93%

197
(30)

91%

202
(21)

95%

92
(22)

91%

SMM Group$ thousands(%)(Philippines)

Percentage of employees receiving regular
health checkups4

Labor union
members1

GRI 203-1

FY2021

0.90

FY2018Niihama District

Percentage of employees with abnormal
findings1

FY2020Percentage of procurement2 from local suppliers1 and percentage of employees hired locally3

* Percentage of employees taking leave: Total number of days of leave taken ÷ number of scheduled working days x number of employees at end of fiscal year x 100

Sumitomo Metal
Mining Health
Insurance
Association

FY2019%Percentage of employees with high stress,
average for all Group companies

Various healthcheckups

FY2018

CNY millions(%)

1. Targets the three core segments (Mineral Resources, Smelting & Refining, and Materials), business sites that are not only necessary for the business, but are also relatively large-scale(one domestic, one overseas site for each segment)
2. Local procurement: Amount paid to each area and percentage of payments (percentage of payments: amount of payments to payment area ÷ amount of total procurement payments x 100)
3. Percentage of locally-hired employees: number of employees from each of the above business sites at the end of each fiscal year ÷ total number of employees × 100
4. Scope of local procurement: Sumitomo Metal Mining Co., Ltd.’s Besshi-Niihama District Division, Toyo Smelter & Refinery, Niihama Nickel Refinery, Isoura Plant and Niihama ResearchLaboratories
5. Scope of percentage of locally-hired employees: Sumitomo Metal Mining Co., Ltd.’s Besshi-Niihama District Division, Toyo Smelter & Refinery, Niihama Nickel Refinery, Isoura Plant,
Niihama Research Laboratories and Battery Research Laboratories

1. Labor union members are employees covered by collective agreements (as of March 31 of each fiscal year)
2. Consolidated subsidiaries of the SMM Group158

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Social Social

Social Data

Percentage of Locally-Hired Senior Managers1, 2
Scope

Unit

GRI 202-2

FY2018FY2019FY2020

FY2021

FY2022

Number ofmanagers Percentage

Number ofmanagers Percentage

Number ofmanagers Percentage

Number ofmanagers Percentage

Number ofmanagers Percentage

Sumitomo Metal Mining
Philippine Holdings Corporation

2 (1)

3.0%

3 (1)

4.1%

2 (1)

2.6%

3 (2)

3.8%

4 (3)

5.0%

(Philippines)

Human Rights in the Supply Chain
Number of responses to responsible
mineral sourcing questionnaire*

Scope

Unit

SMM Groupcases

FY2018FY2019—FY2020—

FY2021199

FY2022330

270* Number of responses out of the Responsible Mineral Sourcing questionnaire forms from customers, mainly smelter and refinery specific survey forms developed by RMI

Taganito HPAL Nickel
Corporation

1 (0)

0.2%

2 (1)

0.3%

2 (1)

0.3%

2 (1)

0.3%

3 (2)

0.4%

2 (0)

0.4%

4 (0)

0.7%

5 (1)

0.8%

6 (1)

1.1%

7 (1)

1.1%

2 (0)

8.7%

2 (0)

8.7%

0 (0)

0.0%

1 (0)

6.7%

1 (0)

6.3%

(Philippines)

Coral Bay Nickel
Corporation(Philippines)

Sumitomo Metal Mining
Peru S.A.
(Peru)SMM Korea Co., Ltd.
(South Korea)

Economic Performance
Scope
Distribution of economic value to stakeholders

SMM Group

people/%Shanghai SumikoElectronic Paste Co., Ltd.

1 (0)

2 (0)

25.0%

5.1%

1 (0)

2 (0)

14.3%

5.4%

1 (0)

2 (0)

25.0%

4.8%

1 (0)

2 (0)

25.0%

4.9%

1 (0)

3 (1)

GRI 201-1/201-3/201-4/207-4

SMM Group

20.0%

7.1%

(China)Taiwan Sumiko Materials
Co., Ltd.

¥ billions

FY2022
1,384.4

Suppliers

Payments to suppliers

1,165.4

Employees

Payments to employees

75.0

Shareholders and Creditors

Payments of dividends and interest

93.1

Government

Taxes paid

49.0

Society*

Donations

1.9

1 (0)

4.0%

4 (2)

15.4%

1 (0)

0.4%

0 (0)

0.0%

0 (0)

0.0%

2 (1)

13.3%

2 (1)

13.3%

2 (1)

11.1%

3 (1)

12.5%

3 (1)

12.0%

No governments have an equity stake in SMM
Other than the above, there is retained value of ¥90.7 billion. Rent for use of land is minimal and therefore included in “Payments to suppliers.”* Society: In the Philippines (CBNC, THPAL), the ¥1.6 billion expended through the Social Development and Management Program (SDMP) and other contributions in the same country is included

—

—

1 (1)

25.0%

2 (1)

50.0%

2 (1)

50.0%

2 (1)

50.0%

Financial assistance from the government(Taiwan)Dongguan SumikoElectronic Paste Co., Ltd.

Unit

Total

(China)Scope

Sumitomo Metal Mining
Oceania Pty. Ltd.

SMM Group

Government

Unit
Subsidies, grants, etc.

FY20220.5¥ billions(Australia)

1. The number of senior managers include general managers or above of overseas subsidiaries (as of the end of each fiscal year). Figures in parentheses indicate the number of female
managers
2. Percentage of senior managers: number of senior managers ÷ locally-hired employees x 100(Number of locally-hired employees is the number of employees directly employed by overseas subsidiaries, excluding dispatched employees and transferees)

Projected benefit obligation
The SMM Group has adopted both funded and unfunded defined benefit plans and defined contribution plans for allocating retirement benefits to its employees
Its defined benefit obligations as of March 31, 2023 were ¥65.1 billion , which include funded defined benefit obligations of ¥62.5 billion , and pension asset available for allocation to those funded defined benefit obligations were ¥85.7 billion
Scope
Income Tax by Country or Region

SMM Group

Unit

Total

¥ millions

FY2022
69,44440,374

Japan

266

Australia
Chile

4,975

China

1,212
453

Netherlands

707

New Caledonia
Peru

12,303

Philippines

3,717

U.S.A.

5,431

Other

6

With regard to equity-method affiliates, the above amounts include the Company’s proportional burden of income tax

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Corporate GovernanceCompliance
Tax Governance

GovernanceRisk Management
Quality Assurance
Information Security

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Governance GovernanceCorporate Governance

Basic Approach

Corporate Governance Framework

SMM views corporate governance as a disciplinary framework both for maximizing the corporate value of the SMM Group and for
ensuring sound management practices. As such, it is one of the most important management issues.
SMM has established the SMM Group Corporate Philosophy based on the Sumitomo Business Spirit. Through striving to enhance
our corporate governance, we will conduct efficient and sound business activities, make positive contributions to society, and fulfill
our responsibilities to our shareholders and all other stakeholders in order to realize the SMM Group Corporate Philosophy.

In line with its Corporate Governance Guidelines, which summarize the Company’s basic philosophy for corporate governance andthe framework therefore, the Company believes that its governance is a system that ensures that business execution and the associated monitoring and supervision are each functioning fully by using audit and supervisory board and executive officer systems
with which to conduct governance through a three-part organizational structure in which decision-making and supervision are
addressed by the Board of Directors, business execution by the president and the executive officers, and auditing by the Audit &Supervisory Board members and the independent public accountant.

GRI 2-9

Formulating Corporate Governance Guidelines
SMM has established Corporate Governance Guidelines which cover our basic philosophy on corporate governance and our corporate governance framework, including our relationship with stakeholders. More details are available on the Company’s website.

General Meeting of Shareholders

Corporate Governance Guidelines
https://www.smm.co.jp/en/ir/management/governance_policy/
Decision-Making and Supervision

Initiatives to Strengthen Governance

Auditing

Audit &
Supervisory Board

Board of Directors

SMM positions corporate governance as one of the most important issues in our management, and is taking steps to strengthen
governance. We continue to constantly review, improve, and deepen the current state of our corporate governance in light of legal
revisions and social circumstances in order to achieve even better corporate governance.

Governance Committee
ReportingBusiness Execution

Reports to all Audit & Supervisory Board members

PresidentInternal
Control Committee Transitions in Governance at SMM
2000 2001 2003 2004 2006 2007 2011 2012 2015 2016 2017 2018 2019 2021 2022 2023

Audit & Supervisory Board Board of Directors

Executive Officers(FY)Management Committee
Sustainability Committee

Separation ofmanagement andexecution
Number ofmembers*

Independent
Public Accountant

Coordination

Introduction of the executive officer system

Operating Department


14

6

OutsideDirectors
Number ofmembers*4

Outside Audit& Supervisory
Board
members2

7

Internal Audit Department

8
Appointment of an outside director

Appointment of a female director

1



2

3

7 Sustainability
Subcommittees

4 Management
Systems Working
GroupsCorporate Value
Enhancement
Strategic Committee Percent of Outside Directors on the Board of Directors

DigitalTransformation
Committee

Carbon Neutrality
Committee

 Percent of Female Directors

OutsideEstablishment of a GovernanceAppointment of the chair of the Governance Committee
Committee

Optional committees on nomination,
remuneration, etc.

Outside Officers
CouncilInternal

5

Outside Directors Council meeting heldOutside Directors/
Audit & Supervisory
Board Members’
Liaison Committee

3
3/8
37.5%

Female

1

Male

1/8
12.5%

7

Outside Directors/Audit & Supervisory Board
Members’ Liaison Committee meeting held

Executive advisor
systemAbolition of the executive advisor system

 Percent of Outside Directors in the Governance Committee
Evaluation of the effectiveness of theBoard of Directors

Effectivenessevaluations



Takeover defense
measures

Introduction of takeover defense measures







Establishment of Corporate Governance Guidelines/Discussion of what the Boardof Directors should ideally be

Guidelines and
Ideal Vision

OutsideEvaluation of the effectiveness of the
Audit & Supervisory Board

Decision to discontinue takeover
defense measures Percent of Outside Officers(Directors and Audit & Supervisory Board Members)

Internal

1

3
3/4
75.0%

Outside officers
Internal officers

7

5
5/12
41.7%



* The Number of members of the Board of Directors and Audit & Supervisory Board are after the General Meeting of Shareholders.

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Governance GovernanceCorporate Governance

Governance Committee

Positioning Mineral Resources, Smelting & Refining, and Materials as its three core businesses, SMM aims to realize its Long-Term
Vision of becoming a “World Leader in the Non-Ferrous Metals Industry.” Since all three businesses are related to non-ferrous metals,
they have a mutual organic relationship and their business contents and scale are such that the Board of Directors can make decisions itself regarding diverse management issues. Furthermore, from the viewpoint of the stronger coordination currently being
promoted among the three businesses, it will further stimulate the Company’s growth if the Board of Directors itself comprehensively makes decisions rather than giving strong independence to each business segment and permitting them to make their own
decisions. To this end, we consider that in principle a management model is appropriate for the Company’s governance, rather thana monitoring model that oversees overall business execution after the fact.
Furthermore, in view of the distinctive characteristics of the SMM Group’s business operations, it is important to strengthen the
management infrastructure (particularly regarding compliance, safety, and the environment) and therefore necessary to establish asystem whereby Audit & Supervisory Board members can point out issues to directors and executive officers without hesitation.
From this viewpoint, we have adopted an organizational structure of a company with an Audit & Supervisory Board in which Audit& Supervisory Board members with guaranteed independent authority can be expected to exercise their auditing functions stably
over a period of four years.
At present, Audit & Supervisory Board members do not have the right of convocation regarding decisions of the Board of Directors
or the right to vote on the Board of Directors. The resulting inability of Audit & Supervisory Board members to propose the removal ofa director to the Board of Directors is an issue for companies with an Audit & Supervisory Board. We are striving to overcome thisissue by appointing multiple outside directors (at least one-third of members), have them become members of the GovernanceCommittee, and deal with the appointment and dismissal of directors and executive officers in the Governance Committee.

The Governance Committee is composed of one member who is the chairman of the Board of Directors, who is not an executive
officer, and three independent outside directors. It was established to provide the president with advice from an objective standpoint with regard to particularly important matters relating to corporate governance, including the nomination and remunerationof directors, executive officers, and others.

Decision-Making and Supervisory System
Directors and the Board of Directors

GRI 2-9/2-11/2-12/2-13/2-15/2-16

8 directors (3 outside directors)

Chairman: Yoshiaki Nakazato (Chairman of the Board without representation)
Term of office: 1 year
Meetings held in FY2022: 17

The Board of Directors has a diverse composition by including both members from within the Company who are thoroughly familiar with each area of the Company’s business as well as outside experts with knowledge, experience, ability, insight and other attributes different from that of the members from within the Company and who can supervise management on behalf of shareholders
and other stakeholders.
Furthermore, striving for greater managerial transparency, the Company has a policy of appointing at least one-third of its directors as independent outside directors, and of the eight directors, three, including one with management experience, have been
appointed as independent outside directors.
Among the Company’s directors, there are four directors who are also executive officers. Conflicts of interest are addressed inaccordance with Japanese law. There are no controlling shareholders.
Main Agenda Items at Board Meetings• Related to existing and new projects in each business• Borrowings and other financing• Establishment or revision of important rules and regulations, including policies on human rights, DX, etc.

Outside directors are expected to perform two functions: an advisory function and a monitoring function.
Regarding the advisory function, in order for the SMM Group to achieve sustainable growth and increase its corporate value overthe medium to long term, outside directors are expected to enhance the quality of decision-making by the Board of Directors byproviding advice and making decisions based on their experience and other factors, without being bound by the Company’s conventional way of thinking or frameworks.
Regarding the monitoring function, outside directors are expected to serve a check function on management from an independent and objective standpoint via the Board of Directors, as well as to supervise management on behalf of shareholders and otherstakeholders by providing advice during decision-making on director nomination, remuneration, and other relevant matters as
members of the Governance Committee.

Auditing System
4 Audit & Supervisory Board members (2 outside Audit & Supervisory Board members)

Chairman: Koji Imai (Standing Audit & Supervisory Board member)
Meetings held in FY2022: 18

The Audit & Supervisory Board has four members (two standing Audit & Supervisory Board members and two outside Audit &Supervisory Board members). Standing Audit & Supervisory Board members belonging to the Company gather in-house information in an accurate and timely manner, and audit operations appropriately based on this information, while independent outside
Audit & Supervisory Board members conduct audits in a manner that takes advantage of knowledge of their respective specialist
fields and diverse perspectives.
In order to ensure managerial soundness and increase the corporate value of the Company, and in accordance with the audit
policies, audit plans, and other such matters prescribed by the Audit & Supervisory Board, each Audit & Supervisory Board member
will attend meetings of the Board of Directors and other important meetings, receive reports from directors, executive officers, andemployees regarding the status of the performance of their duties, and, through on-site inspection activities at domestic and overseas business sites, confirm the status of business execution, inherent issues, and the establishment and operation of internal control systems. In addition, information collected by the standing Audit & Supervisory Board members through inspection ofimportant approval and other such documents and reports from related departments is shared with the outside Audit &Supervisory Board members and discussed among all Audit & Supervisory Board members.
Main Agenda Items at Audit & Supervisory Board Meetings• Cross-shareholdings held
• Dialogue with institutional investors• Planning and results of auditing by Audit & Supervisory
Board members and internal auditing

Other reports on the progress of sustainability activities are made at least twice a year. In addition, the status of use of the
Whistle-blowing System (Speak Up System) and the status of responses are regularly reported. Also, complaints received by theJapan Center for Engagement and Remedy on Business and Human Rights (JaCER*), a contact point for receiving complaints fromsuppliers and other external parties, are also subject to reporting as a grievance (remedy) mechanism.
While any matters of critical concern that arise are required to be reported to the Board of Directors, there were no matters ofcritical concern reported in FY2022.
In stakeholder engagement conducted by the Board of Directors, authority is delegated to business divisions for customers andsuppliers, to the Human Resources Department for employees, and to the Public Relations & Investor Relations Department forshareholders and investors.
The status of dialogue with investors is reported once a year.
* JaCER

4 Governance Committee members(3 outside directors)

Role and function of outside directors

Audit & Supervisory Board

166

Chair: Taeko Ishii (Outside Director)
Meetings held in FY2022: 5 (2 nomination meetings, 2 remuneration meetings,
1 general governance meeting)

What the Board of Directors should ideally be• Audit plan of the Audit & Supervisory Board members(monthly and annually)• Results of the audit of the Audit & Supervisory Board
members (monthly and annually)• Confirmation of each agenda item of the Board of
Directors meeting• Information on the business environment• Audit report of the Audit & Supervisory Board• Results of the evaluation of the effectiveness of the Audit& Supervisory Board

Role and function of outside Audit & Supervisory Board members
In order for the Company to achieve sound management and increase its corporate value over the medium to long term, outside
Audit & Supervisory Board members are expected to conduct effective audits based on their knowledge and experience in specialized fields, including finance, accounting, and legal matters, while maintaining sufficient coordination with Standing Audit &Supervisory Board members belonging to the Company.
In addition, as part of the audit process, outside Audit & Supervisory Board members are expected to participate in key meetings,
including Board of Directors meetings, and to actively express their forthright opinions from an independent and objective standpoint during the decision-making process, including not only the legality but also the appropriateness of proposals.

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Governance GovernanceCorporate GovernanceCollaboration among the Internal Audit Department, Independent Public Accountant, and Audit &Supervisory Board Members

The Board’s Engagement in Succession Planning for the CEO and Other Top Executives

The Internal Audit Department regularly undertakes internal audits on the status of business execution across the SMM Group.
The Department provides an explanation of its audit plans to Audit & Supervisory Board members and the Audit & Supervisory
Board while passing on all relevant information. At the same time, Audit & Supervisory Board members provide details of audit
plans determined at meetings of the Audit & Supervisory Board to the Internal Audit Department, accompany staff of the Internal
Audit Department as required when conducting internal audits, and attend meetings when reports on the results of internal audits
are delivered to executive officers and the heads of operational divisions. In FY2022, Audit & Supervisory Board members attended
such meetings 19 times. KPMG AZSA LLC, an independent registered public accounting firm, audits the consolidated financial statements and the effectiveness of the internal control over financial reporting. Audit & Supervisory Board members provide details ofaudit plans to the independent public accountant. Audit & Supervisory Board members in turn receive explanations regarding audit
plans and reports on audit results and reports reviewing each quarter from the independent public accountant. In this manner,close collaboration is maintained between the independent public accountant and Audit & Supervisory Board members.

The succession planning for holders of the office of chief executive officer (president and director) is conducted and executed
appropriately on the basis of our corporate philosophy and business plans. With regard to the candidate for the successor to thepresident, the Governance Committee (Chair: Taeko Ishii, Director), composed of the chairman of the Board of Directors who is not
an executive officer and three independent outside directors, has opportunities to deliberate on the environment and methods forfostering the next president as well as concerning the candidates, etc.
Regarding the specific procedure for selecting the successor to the president, after consulting with the Governance Committee
about the candidate recommended by the president and receiving advice on whether the candidate has the qualifications, knowledge, experience, abilities, and insight worthy of a president and director, the president makes the final proposal to the Board of
Directors, which makes the final decision after due deliberation.
With regard to the selection of the candidate executive officers who will constitute the pool of candidates for future president,
the president, based on recommendations from the executive officers, consults with the Governance Committee regarding thebest lineup to resolve the issues management faces, formulates the final proposal with reference to that advice, and submits the
proposal to the Board of Directors. The Board of Directors then makes the final decision after due deliberation.

Standard for Independence
All the Company’s outside directors and outside Audit & Supervisory Board members have been declared as independent officers,
pledging that there is no conflict of interest with that of shareholders. We also publish our standards governing the independenceof outside officers on the Company website.
Standard for Independence
https://www.smm.co.jp/en/ir/management/governance_policy/#Independence

Outside Directors/Audit & Supervisory Board Members’ Liaison Committee
In FY2022, liaison meetings were held in May and December. Given the overview of reports on most recent internal audit results by
the internal audit department and department heads’ hearing results from the Audit & Supervisory Board members’ on-site audits, awide range of opinions were exchanged.

View on the Balance between Knowledge, Experience, and Skills of the Board as a whole,and Also on Diversity and Appropriate Board Size
The Board of Directors will achieve a diverse composition by including both members from within the Company who are thoroughly familiar with each area of the Company’s business as well as outside experts with knowledge, experience, ability, insight andother attributes different from that of the members from within the Company. Based on “what the Board of Directors should ideallybe,” as stated in “Reasons for selection of present corporate governance system,” the skill matrix for the Company’s directors andAudit & Supervisory Board members was created and is shown below. Each skill item has been selected through discussions by the
Board of Directors, focusing on those required to realize the Company’s long-term vision and Vision for 2030. As the knowledge,
experience, ability, insight, and other attributes required of the Company’s Board of Directors may change in response to changes
in management strategies and the external environment, the Board of Directors will continue to discuss the necessary knowledge, Skills Matrix for Board of Directors

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Category
Directors

With regard to the nomination of candidates for the Board of Directors, the president comprehensively considers the knowledge,
experience, ability, insight and other attributes of the candidates with respect to the best lineup for resolving current and future
management issues (including the positive and negative impacts on the economy, environment, and people, including humanrights, for the sustainable development of the Company), and proposes suitable candidates to the Board of Directors. The
Governance Committee, which consists of the Chairman of the Board of Directors who is not an executive officer and the independent outside directors who supervise the management team on behalf of shareholders and other stakeholders, will provide thepresident with advice. The Board of Directors makes the final decision after due deliberation.
With regard to the selection of executive officer candidates, the president, based on the recommendations of the executive officers, comprehensively considers the knowledge, experience, ability, insight and other attributes of the candidates in accordancewith the same approach as when nominating candidates for director, and the same procedures shall be used to determine thecandidates.
The Governance Committee has opportunities to deliberate on the environment and methods for fostering the next president aswell as concerning the candidates. In the event that an executive officer has rendered himself or herself markedly ineligible, forexample by having acted unlawfully, improperly, or disloyally, and a dismissal recommendation is made to the Board of Directors
after the Governance Committee gives advice on the matter, and the individual concerned may be dismissed by resolution of theBoard of Directors.
With regard to the nomination of Audit & Supervisory Board member candidates, the policy is for the president to comprehensively consider the qualifications, knowledge (including that of finance, accounting, and law), experience, ability, insight and otherattributes of the candidates and, after obtaining the prior approval of the Audit & Supervisory Board, to propose the qualified candidates to the Board of Directors, which will then determine the nominations.

Knowledge, experience, ability, etc. possessed by directors and Audit & Supervisory Board members that theCompany believes will contribute to the effectiveness of the Board of Directors
NameGeneralCorporate
Management,
Sustainability

GlobalCapability

Business,
Marketing(International
Experience)

R&D,
Manufacturing,Engineering

Quality,
Safety,Environment

Finance,
Accounting

Yoshiaki Nakazato









Akira Nozaki









Toru Higo

Nobuhiro Matsumoto











Masaru Takebayashi











Human
Resources

Manabu KinoshitaKanji Nishiura













Koji Imai
Tsuyoshi Nozawa
Wataru Yoshida

Legal,
ComplianceTaeko Ishii

Audit & Supervisory
Board Members

Procedures in the Nomination of Director Candidates, Appointment or Dismissal of Senior
Management, and Nomination of Audit & Supervisory Board Member Candidates
GRI 2-10











Shoji Wakamatsu








Fields in which Directors and Audit & Supervisory Board Members believe that they can make a particular contribution to the effectiveness of the Board of Directors are indicated with a “”Furthermore, the Company has established the guidelines for fulfillment. For the details, please refer to the Final Page of the Corporate Governance Report(August 3, 2023)

Final Page of the Corporate Governance Report (August 3, 2023)
https://www.smm.co.jp/en/news/release/uploaded_files/230803_CGR_E.pdf

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Governance GovernanceCorporate Governanceexperience, ability, insight, and other attributes, and update the skills matrix as necessary. The size of the Board of Directors will beappropriate to conducting active discussions and ensuring the briskness of the Board. One-third or more of the Directors will be
independent outside directors in order to strive for greater managerial transparency.
 Outside Directors and Outside Audit & Supervisory Board Members

GRI 2-9

Functions and Roles in Corporate GovernanceTaeko Ishii

Outside Director
Attendance (FY2022)

Board of Directors meetings
17/17 (100%)

Manabu Kinoshita
Outside Director

Attendance (FY2022)

Board of Directors meetings
17/17 (100%)

Kanji Nishiura
Outside Director

Attendance (FY2022)

Board of Directors meetings—

Wataru Yoshida

Outside Audit & Supervisory
Board Member
Attendance (FY2022)

Board of Directors meetings
17/17 (100%)

Ms. Taeko Ishii has specialist knowledge and abundant experience as a lawyer, especially in the field of labor law. Ms. Taeko Ishii participatesin the Board decision-making, providing her advice regarding compliance and personnel/labor related fields, which is aimed toward thesustainable growth and medium- to long-term enhancement of the corporate value of the Group by utilizing her knowledge and experience. She also performs a check function on management by participating in decision-making at the Board of Directors from an independent and objective standpoint, and to oversee the management on behalf of shareholders and other stakeholders by being involved indecision-making regarding nominations and remunerations of directors and executive officers as a member of the Governance Committee.
Accordingly, she realizes the further improvement of quality of the decision-making by the Board of Directors and the enhancement of themonitoring function.
Mr. Manabu Kinoshita has a wealth of knowledge and experience in corporate management and digital business. He participates in the
Board decision-making, providing his advice regarding material business and digital fields where the business environment is changing significantly, which is aimed toward the sustainable growth and medium- to long-term enhancement of the corporate value of the Group by
utilizing his knowledge and experience. He also performs a check function on management by participating in decision-making at theBoard of Directors from an independent and objective standpoint, and to oversee the management on behalf of shareholders and otherstakeholders by being involved in decision-making regarding nominations and remunerations of directors and executive officers as a member of the Governance Committee. Accordingly, he realizes the further improvement of quality of thedecision-making by the Board of Directors and the enhancement of the monitoring function.
Mr. Kanji Nishiura has abundant knowledge and experience in corporate management, non-ferrous metal business, and various other businesses. Mr. Kanji Nishiura is expected to participate in the Board decision-making, providing his advice particularly on long-term projects
and comprehensive plans aimed toward the sustainable growth and medium- to long-term enhancement of the corporate value of theGroup by utilizing his knowledge and experience. He is also expected to perform a check function on management by participating in decision-making at the Board of Directors from an independent and objective standpoint, and to oversee the management on behalf of shareholders and other stakeholders by being involved in decision-making regarding nominations and remunerations of directors and executive
officers as a member of the Governance Committee. Accordingly, the Company expects that he will realize the further improvement ofquality of the decision-making by the Board of Directors and the enhancement of the monitoring function, and has appointed him as
Outside Director.
Mr. Wataru Yoshida has a wealth of financial institutional experience and knowledge of corporate management. He carries out effective
audits, especially regarding finance and overseas projects, based on his own knowledge and experience in order to ensure the soundness of
the Group’s management and improve its corporate value over the medium to long term, while fully coordinating with the standing Audit &Supervisory Board members. In addition, as part of the audit process, he participates in important meetings, including Board of Directors
meetings, and during the decision-making process actively expresses his frank opinions from an independent and objective standpoint,
including not only the legality but also the appropriateness of proposals.

Audit & Supervisory Board
meetings
18/18 (100%)

Shoji Wakamatsu

Outside Audit & Supervisory
Board Member
Attendance (FY2022)

Board of Directors meetings
16/17 (94%)

obtain timely and appropriate information through lectures by lawyers and other external experts and through other such means.
Additionally, the Company will provide information on other training opportunities such as external seminars.
Including the above, the Company will bear the entire amount of any expenses necessary for director, Audit & Supervisory Board
member, and executive officer training.

Mr. Shoji Wakamatsu has many years of auditing and management experience at an audit firm and a wealth of knowledge about accounting. He carries out effective audits, especially regarding accounting, based on his own knowledge and experience in order to ensure thesoundness of the Group’s management and improve its corporate value over the medium to long term, while fully coordinating with standing Audit & Supervisory Board members. In addition, as part of the audit process, he participates in important meetings, including Board of
Directors meetings, and during the decision-making process actively expresses his frank opinions from an independent and objective
standpoint, including not only the legality but also the appropriateness of proposals.

Audit & Supervisory Board
meetings
18/18 (100%)
The concurrent occupations of outside directors and outside Audit & Supervisory Board members (as of March 31, 2023) are listed in the Document of Matters
Subject to Measures for Electronic Provision Regarding the 98th Ordinary General Meeting of Shareholders

4. Matters related to corporate officers, (1) Name of Directors and Audit & Supervisory Board Members (as of March 31, 2023) on page 13 of
the Document of Matters Subject to Measures for Electronic Provision Regarding the 98th Ordinary General Meeting of Shareholders

Basic Policy and Procedures for Remuneration of Directors
Basic Policy

GRI 2-19

Remuneration for directors of SMM is linked to the business performance of the Company, and designed to motivate directors toachieve medium- to long-term goals, based on the business structure of the Company, so that it functions as a sufficient incentive
to contribute to sustainable growth, increase the corporate value of the Group over the medium to long term, and to strengthen
and maintain the management base. When determining the remuneration of individual directors, the amount of remuneration is
calculated using a predetermined formula in order to ensure fairness, and the Company maintains a basic policy of setting remuneration at an appropriate level based on the responsibilities of each director.
Specifically, the remuneration for directors (excluding the Chairman and outside directors) shall consist of basic remuneration
and bonuses. Basic remuneration shall consist of fixed remuneration (remuneration which is neither performance-based nor
non-monetary) and performance-based remuneration, etc., while bonuses shall be performance-based remuneration, etc. The
Chairman and outside directors shall receive only fixed remuneration and no bonuses.
Basic remuneration is calculated on an annual basis for each individual and paid each month in monthly installments, whilebonuses are paid once annually after approval is obtained at the Ordinary General Meeting of Shareholders.
Details are provided in the Corporate Governance Report

Corporate Governance Report (August 3, 2023)
https://www.smm.co.jp/en/news/release/uploaded_files/230803_CGR_E.pdf

Matters Related to Performance-based Remuneration

GRI 2-19

The indicators employed by the Company to determine performance-based remuneration include consolidated results (profit
attributable to owners of the parent, profit before tax), departmental results (return on capital employed [ROCE], free cash flow, andsegment income), the degree of attainment of personal targets under medium- to long-term management strategies, and safety
record (number of industrial accidents).
Reason for Selection of Above Indicators• Consolidated results (profit attributable to owners of the parent, profit before tax)
 Because these indicators are key measures of the Company’s corporate management performance, and are the profitability targets
that it aims to achieve as part of its long-term vision.
• Departmental results The three absolute values of efficiency, cash flow, and profit were selected in order to evaluate performance in a balanced manner.
• Degree of attainment of personal targets under medium- to long-term management strategies* Because the steady implementation of plans with a medium- to long-term perspective is essential in order to increase our corporate value in a sustainable manner.
• Safety record
Because we believe that securing a safe workplace is our operating foundation.
* Growth strategies, measures to strengthen competitiveness, measures to improve sustainability, etc., set forth in the 2021 3-Year Business Plan

https://www.smm.co.jp/en/ir/stock/meeting/pdf/2023/no98_houkoku.pdf

Training Policy for Directors and Audit and Supervisory Board Members

Method of Determining Amount of Performance-based Remuneration, etc.
GRI 2-17

The training of directors and Audit & Supervisory Board members is based on the self-improvement of each individual, and therefore the Company contributes to self-improvement by providing opportunities for training either directly or as an intermediary, andprovides support for the costs thereof.
Specifically, the Company will provide training on the legal liabilities of officers, compliance, and legal knowledge for newly
appointed directors, Audit & Supervisory Board members, and executive officers when assuming office. The Company will provide
various kinds of internal training for directors, Audit & Supervisory Board members, executive officers, and others and endeavor to170

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GRI 2-19/2-20

The amount of performance-based remuneration, etc. is calculated by adding an amount reflecting individual performance to an
amount of position-specific performance-based remuneration, etc. Moreover, there are no sign-on bonuses or recruitment incentive payments, termination payments, clawback systems, or retirement benefits.
The details of each calculation method are provided in “Matters related to performance-based remunerations, etc.” of theDocument of Matters Subject to Measures for Electronic Provision Regarding the 98th Ordinary General Meeting of Shareholders.
5. Matters related to remunerations of corporate officers on pages 17-23 of the Document of Matters Subject to Measures forElectronic Provision Regarding the 98th Ordinary General Meeting of Shareholders
https://www.smm.co.jp/en/ir/stock/meeting/pdf/2023/no98_houkoku.pdf

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Governance GovernanceCorporate Governance

Annual Total Compensation Ratios (FY2022)

GRI 2-21

Ratio of the average annual total compensation
for the organization’s highly-paid individuals to
the total compensation for all employees1

1,039%

Ratio of the percentage increase in averageannual total compensation for the organization’s
highly-paid individuals to that for all employees2

71%

1. Average annual total compensation for the organization’s highly-paid individuals is calculated as annual total compensation for internal directors (plus the employee salaries of any
directors concurrently serving as employees) divided by the number of internal directors
This ratio is calculated as average annual total compensation for the organization’s highly-paid individuals divided by the median annual total compensation for all employees x 100
2. Ratio of the percentage increase is calculated as the percentage increase in average annual
total compensation for the organization’s highly-paid individuals divided by the percentage
increase of the median annual total compensation of all employees x 100

1) Response to questionnaire and results of analysis and evaluation of the external evaluator

The Company’s financial results are significantly impacted by prevailing metal market conditions and exchange rates, and thus do
not necessarily correspond with the progress of management strategies and projects. Furthermore, projects related to resource
development and the construction of smelting and refining plants require extremely long time periods from start to completion,and it is not unusual for the composition of management to have changed by the time the fruits of those projects can be reaped.
Given these characteristics of its business, the Company has considered how remuneration should operate as a healthy incentive
for individual directors and managers and has consequently laid down its current remuneration system composed of performancebased remuneration and bonuses based on consolidated financial results and assessment factors such as the degree of attainmentof personal targets under medium- to long-term management strategies. At present, we do not believe that remuneration in theform of Company stock would effectively operate as a healthy incentive for management, and thus have not introduced it.

Details of Procedures for Determining the Amount of Audit & Supervisory Board Member
Remuneration
The amount of basic remuneration for each individual Audit & Supervisory Board member will be determined by consultation
among the Audit & Supervisory Board members at the Audit & Supervisory Board within the total remuneration amount approvedby the General Meeting of Shareholders.

Number of Officers

Directors (excluding outside directors)¥405 million¥245 million¥160 million—

5

Audit & Supervisory Board members¥68 million¥68 million

—

—

3

(excluding outside Audit & Supervisory Board members)

2) Deliberations at the Board of Directors meeting
In response to the external evaluator’s advice, the Board of Directors conducted deliberations on each of the following matters.
(1) With respect to deliberations at Board of Directors meetings, some responses suggest that the meetings should further
extend discussions of business strategy, management issues, sustainability, etc. In response to this, the Board confirmed thatthe following would be carried out:a. C ontinuously ensure that the agenda includes business strategy and management issues.
b. Extend opportunities to discuss sustainability in addition to semiannual reports from the Sustainability Committee.
(2) With respect to initiatives related to the matters pointed out in the past fiscal years (in particular, securing human resources,etc.), the Board of Directors confirmed that they would deliberate them based on the measures of the executive side.
(3) The Board of Directors confirmed other matters, such as extending information that facilitates deliberations of the agenda andproviding the Board of Directors with more effective feedback concerning opinions on capital markets.

The Board of Directors confirmed that steps will be taken with regard to the above matters in order to improve its effectiveness inan ongoing manner.

 FY2022 Director and Audit & Supervisory Board Member Remuneration
Total amount of remuneration, etc. by remuneration type
Performance-basedNon-monetary
Fixed remuneration
remuneration, etc.
remuneration, etc.

(1) Most of the main items related to the effectiveness of the Board of Directors received a high overall rating, and the Board of
Directors can be evaluated as generally functioning effectively.
(2) In the open-ended response section of the questionnaire, many positive opinions were expressed about the current systemand operation, and many matters are pointed out as opinions to improve the current situation.
(3) It is desirable to continue to discuss how the Board of Directors should deliberate strategies and visions. Additionally, the matters pointed out in the past fiscal years (such as securing human resources) should be continuously discussed about how tomake further improvements toward implementation.

Future steps

Total Amount of Remuneration, etc. Paid to Directors and Audit & Supervisory Board
Members

Total Remuneration

The Board of Directors prepares and conducts a questionnaire based on the previous year’s issues to directors and Audit &Supervisory Board members with the assistance of an external evaluator (law firm). The Board of Directors outsources the compilation of responses and related analysis to the external evaluator. Based upon the results of the questionnaire, the evaluation by theexternal evaluator, and the confirmation of what the Board of Directors should ideally be (aim to achieve a Board of Directors
focused on decision-making function) conducted in FY2016, the Board of Directors reviewed its own effectiveness at a regular
Board of Directors meeting held in February 2023, where it confirmed its evaluation and discussed its response going forward.

Overview of analysis and evaluation results

Management Remuneration as an Incentive

Officer Classification

Analysis and evaluation process

Outside directors¥43 million¥43 million

—

—

3

Outside Audit & Supervisory Board members¥24 million¥24 million

—

—

2

Directors whose total consolidated remuneration, etc. is ¥100 million or more are disclosed individually in the Company’s Annual Securities Report.

Analysis and Evaluation of the Effectiveness of Auditing by Audit & Supervisory Board
Members and the Audit & Supervisory Board, and the Results
Purpose, etc. of the Evaluation of the Effectiveness of the Audit & Supervisory Board
In order to ensure managerial soundness and increase the corporate value of the Group, the Audit & Supervisory Board members
audit the execution of duties by directors and executive officers in accordance with the audit policies, audit plans, and other suchmatters prescribed by the Audit & Supervisory Board. Through this evaluation of effectiveness, the Audit & Supervisory Board
reviews its own audits and activities, examines issues to be improved and measures to be taken, and reflects them in the next year’s
audit plan and daily audit activities, thereby establishing a PDCA cycle.

Evaluation process

Analysis and Evaluation of the Effectiveness of the Board as a whole, and the Results

GRI 2-18

The Board of Directors analyzes and evaluates the effectiveness of its performance from the perspective of appropriate decision-making for business execution and enhancing monitoring functions. The following is a summary of the results of the analysis
and evaluation of the effectiveness of the Board of Directors in FY2022.

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In order to carry out the evaluation from an independent and objective standpoint, we requested advice on analysis and evaluationfrom Misono Sogo Advisory LLC, an outside professional organization. Based on the results, the Audit & Supervisory Board discussed the matter and conducted the evaluation. The specific evaluation process included a questionnaire of all Audit &Supervisory Board members, interviews with the chairperson of the Audit & Supervisory Board (Senior Standing Audit & Supervisory
Board member) and with the administrative office of the Audit & Supervisory Board by an outside professional, and discussions withparticipation by all Audit & Supervisory Board members (four times in total).

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Governance GovernanceCorporate Governance

Overview of evaluation results
The Audit & Supervisory Board confirmed the following points and evaluated that the audits and activities of the Audit &Supervisory Board members were functioning well and sufficiently effective.
• Through their attendance at Board of Directors meetings, discussions among Audit & Supervisory Board members, and auditing activities
by Audit & Supervisory Board members, the Audit & Supervisory Board members have conducted audits based on a perspective of
appropriateness and made necessary representations of their opinions.
• The Audit & Supervisory Board members, including outside Audit & Supervisory Board members, have attended Management Committee
meetings, Sustainability Committee meetings, Internal Control Committee meetings, and other important meetings, and checked thestatus of business execution by directors, etc. and whether the internal control system is properly maintained and operated. They havealso actively expressed their opinions based on their insight and experience.
• The Audit & Supervisory Board members have regularly conducted interviews with executives, including representative directors, haveestablished an atmosphere where they can openly exchange opinions, and have made recommendations as necessary.
• On-site audits at domestic and foreign sites, including offices, mines, plants, and affiliated companies, are conducted by a Standing Audit& Supervisory Board member and an Outside Audit & Supervisory Board member as a pair (24 sites were visited in FY2022). Throughthese site visits, Audit & Supervisory Board members have checked with their own eyes the business execution status, specific issues, andhow the internal control system is maintained and operated, and provided advice as necessary.
• At meetings of the Audit & Supervisory Board, the Standing Audit & Supervisory Board members have shared information they collected
through inspection of important approval and other such documents and reports from relevant divisions, as well as the results of theiraudit activities, with Outside Audit & Supervisory Board members, and have held discussions.
• Outside Audit & Supervisory Board members spend enough time and effort to fulfill their duties adequately, including on-site audits.
• Audit & Supervisory Board members share information and exchange opinions with Outside Directors at meetings or in other ways.

Future steps
Through discussion among all members, the Audit & Supervisory Board defined the roles of the Company’s Audit & Supervisory
Board as follows: Monitor and restrain the management, have a strong sense of involvement in corporate management under thecondition that they are non-executive, and provide the management with objective opinions as Audit & Supervisory Board members based on their professional insights and experience.
For Audit & Supervisory Board members to fulfill these roles, it is necessary to have initiatives whereby they understand the corporate management from an objective perspective and respond promptly and flexibly in light of internal and external changes.
Therefore, the Audit & Supervisory Board confirmed that as matters to be focused on this fiscal year the following actions will betaken.
• Regular reflection by the Audit & Supervisory Board to maintain an objective perspective on management and fulfill their role as Audit &Supervisory Board members• Further enhancement of on-site audit activities by improving information sharing by full-time Audit & Supervisory Board members to
outside Audit & Supervisory Board members in advance of on-site audits, etc.
• Strengthening communication with departments by clarifying our awareness of issues (topics) identified through day-to-day Audit &Supervisory Board member activities (considering topics such as the Company’s function of corporate planning)• Updating information and knowledge about corporate management and other important topics, including providing training by external instructors.

In addition to the above, the Company has confirmed that it will continue to examine specific issues identified in the process ofevaluating the effectiveness, and strive for improvement. By further improving the effectiveness of audit activities, the Audit &Supervisory Board and its members are striving to contribute to strengthening the management infrastructure and improving thecorporate value of the Group.

Business Execution StructureManagement Committee
The membership of the Management Committee includes the president, senior managing executive officers, and other related
executive officers, and its meetings may also be attended by the chairman of the Board of Directors, outside directors, and Audit &Supervisory Board members.
The Management Committee deliberates on important matters requiring careful consideration from a wide range of perspectives prior to their submission for the Board of Directors resolutions or approval by the president, deciding whether or not mattersshould be submitted to the Board of Directors, and assisting the president’s decision-making.
When making investments or capital contributions, we use a project risk check sheet for committees, primarily the Management
Committee, to carry out deliberations regarding human rights issues such as discrimination, forced labor, and child labor, and also

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the political system, economy, law and order, locally-specific diseases, labor issues, religious restrictions, and the impact on the local
community. In FY2022, one new investment agreement was proposed to the Management Committee, which conducted screening for human rights issues and confirmed the investment to be unproblematic. We will continue to carry out regular monitoring in
the future. No projects were withdrawn.

Sustainability Committee* and Internal Control Committee
The Company has systemized its social and environmental initiatives as sustainability promotion activities and is expanding themthroughout the Group. In order to promote these activities, the Sustainability Committee (headed by the president) has been
established. 7 Sustainability Subcommittees and four Management System Working Groups have also been established under the
Sustainability Committee, and the Company has also established the Corporate Value Enhancement Strategic Committee, Digital
Transformation Committee, and Carbon Neutrality Committee.
* Sustainability Committee

P.20-23

Cross-Shareholdings
When advancing our business strategy, the Company may engage in strategic shareholdings with business partners or other companies if it is judged that doing so will contribute to strengthening our business base over the medium to long term. With regard to
existing cross-shareholdings, the Board of Directors verifies aspects such as the objectives of holdings and whether the benefits
therefrom cover the Company’s cost of capital every year. As a result of this verification, with regard to shares whose holding is
judged to have little significance, including shares considered no longer worth the cost of capital and shares judged to havebecome less relevant due to recent business changes, we will proceed with concrete consideration based on the premise of reduction. Furthermore, in cases where a company cross-holding the Company’s shares expresses a desire to sell, we will not prevent
such a sale, etc. by suggesting a reduction in the size of the transaction, or by other means.
With regard to the exercise of voting rights in cross-shareholdings, the Company determines whether to vote for or against each
proposal after giving comprehensive consideration, based on the financial results and other aspects of the financial condition ofeach of the issuing companies, to matters such as whether each proposal will contribute to increasing the corporate value of, or
enhancing shareholders’ interests in, that company over the medium to long term, and what impact it will have on the Company’s
corporate value or shareholders’ interests. In order to determine whether to approve or reject proposals, the Company will engage
in dialogue with the issuing company regarding the contents Number of Issues Reduced (stocks other than unlisted stocks)of each proposal, etc., as necessary. Decisions on voting are
made particularly cautiously in circumstances such as cases
FY2018FY2019FY2020
FY2021
FY2022Whole sale
0
4
3
2
5
of companies affected by major scandals or by persistentPartial
sale
0
1
1
3
3
losses.

Relationship with PT Vale Indonesia Tbk
SMM owns 15% of the stock of PT Vale Indonesia Tbk (PTVI), a
company in the Republic of Indonesia, and has entered ashareholder’s agreement with Vale Canada Limited and PT
Indonesia Asahan Aluminium (Persero), a state-owned
Indonesian company, to jointly manage the company. In
addition, we have also signed an agreement with these twocompanies and PTVI, which gives us the right and obligation
to purchase production from these four companies. Due tothis, SMM has the right and obligation to purchase 20% of theagreed annual production from PTVI’s Sorowako mine.
One of the conditions for obtaining the mining businesslicense required for PTVI to continue operations after 2025
was to increase the Indonesian equity stake in the company.
In FY2020, SMM sold a portion of its PTVI shares and excluded
PTVI from its equity-method affiliates.

 Investment shares held for purposes other than pureinvestment (stocks other than those unlisted stocks,
including deemed holdings”)(million yen)
400,000

61

57

55

53

(number of issues)
60

48

300,000

213,21249,706200,000

148,113251,066
85,039244,11588,37640

20

115,735

163,506

166,027

155,739

2019

2020

2021

2022

100,000

0
(FY)

2018

0

 Amount of cross-shareholdings (excluding PTVI) (left axis)
 Amount of PTVI recorded in cross-shareholdings (left axis)
Number of issues held (right axis)
For FY2020, the number of issues held increased by one due to the exclusion of PTVI
from the equity-method affiliates

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Governance GovernanceCompliance

Initiatives

Approach and Policy
Our Group seeks to contribute to society and fulfill its responsibilities to its stakeholders through the performance of sound corporate activities. Under the philosophy that compliance is fundamental to corporate activities, we have established the SMM Group Code of Conduct and the Basic Compliance
Regulations, to serve as specific guidelines for officers and employees. Further, we have established thefollowing policies and regulations regarding individual focus areas such as human rights and procurement, which is shared across the Group.

Initiatives to Take on Issues and Provide Improvements
In FY2022, the Group-wide compliance goal of “Zero compliance violations that may seriously damage business” was set. The following priority initiatives were identified as focus areas and implemented sequentially and promoted within each department: 1)
review of our compliance management system, 2) thorough line management to eradicate intentional fraudulent acts that may
result in serious damage to the business, and compliance violations that can lead to rescission of permits, and 3) departments incharge of laws and regulations gradually start to handle matters that pose a serious threat to operations or high reputation risk.

Sumitomo Metal Mining Group Policy on Human Rights

Responding to Compliance IssuesSumitomo Metal Mining Group Sustainable Procurement PolicySumitomo Metal Mining Group Basic Policy on TaxesRegulations on insider trading prevention and information managementRegulations on the safeguarding of personal information

Regulations for export control

Regulations for the prevention of bribery

Regulations for observance of competition law

Regulations on the Whistle-blowing System (Speak Up System)

If a compliance incident (including GRI 2-26, “Responsible corporate conduct in organizational business activities and business relationships”) occurs or is likely to occur in our Group, it must be promptly reported to the General Manager of the Legal Department
and other relevant departments through our organizational structure. Further, a system is in place whereby the issue is reported to
the Representative Director, standing Audit & Supervisory Board member, etc. through the General Manager of the Legal
Department, and finally to the Board of Directors. When an incident occurs, measures are taken to identify the cause of such incident, formulate measures to prevent recurrence, and if necessary deployed horizontally.
Further, the Compliance Working Group promotes compliance across the entire Group by analyzing causes of incidents, andshares information aimed at preventing recurrence.

Compliance Status

Promotion StructureWith the president bearing ultimate oversight responsibility for compliance, we strive to promote compliance through our organizational structure. The Compliance Working Group, which operates under the Sustainability Committee and is served by the Legal
Department as secretariat, regularly conducts deliberations and exchanges information on material issues related to compliance. A
system is in place whereby measures shared in the Working Group are cascaded to the necessary employees through our organizational structure and reflected in daily operations.
 Promotion Structure
Sustainability Committee
President
Compliance Working Group
Chair: Executive officer in charge of the Legal Department
Deputy Chair: General Manager of the Legal Department
Members

PolicyReport on initiatives

Department in charge(business division, etc.)

Business sites (plants, mines, Group companies, etc.)

Whistle-blowing

Speak Up System

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Response

Employee

GRI 2-16/2-25/2-26

GRI 2-27/205-3/206-1/207-2/416-2/417-2/417-3

The results of checking FY2022 compliance status show that there were no serious legal or regulatory violations, including thoserelated to the environment, products, service, marketing, tax, anti-corruption, and anti-competitive behavior. In addition, there wereno fines or penalties reported in the consolidated financial statements or in the financial information submitted to public institutions in FY2022, and there are no fines or penalties that are currently pending and could be recorded in the provisions of the balance sheet in financial statements.

Initiatives on Preventing Corruption

GRI 205-1

The SMM Group engages in initiatives to prevent corruption. These include a prior approval system based on the Basic Policies for
Anti-Bribery and regulations for the prevention of bribery, mandating prior approval by an authorized person in specified cases ofprovision of benefits to subject persons in Japan or overseas. Further, an anti-bribery manual was formulated based on the characteristics of each business and country/region, as well as legal and regulatory conditions. Each business division and the Legal
Department work together to prevent corruption under the supervision of the officer overseeing compliance.

Compliance with Competition Laws
The SMM Group has established the Basic Policy for Compliance with Competition Laws. Under this Basic Policy, we set out regulations for the observance of competition law and created a manual for compliance with competition laws, covering the content of
the Basic Policy and rules.
Operations of the prior notification system (a system that in principle requires prior notification when contacting competitors)
based on the regulations for observance of competition law came into effect on April 1, 2022.

Initiatives on Export Control
Based on the regulations for export control, the SMM Group has established the Export Control Committee and strives for compliance with the Foreign Exchange and Foreign Trade Act and other laws and regulations related to exports. Internal systems for the
management of “deemed export” was put in place by FY2021.

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Governance GovernanceCompliance

Whistle-blowing System (Speak Up System)

GRI 2-25/2-26/406-1

In accordance with the enforcement of the amended Whistleblower Protection Act that came into effect on June 1, 2022, we haverevised our Whistle-blowing System. Provisions thereof are incorporated in the newly established Regulations on the Whistleblowing System, independent from the “Basic Compliance Regulations.” The new regulations provide detailed information on matters concerning the handling of whistleblower reports and reports to the Board of Directors, etc. of violations of laws andregulations discovered because of such reports. Employees of our Group (excluding certain affiliate employees operating their own
whistle-blowing system) can provide information directly to the internal reporting hotline, SMM Group Speak Up System (Internal:
General Managers of the Legal, Safety & Environment Control, or Internal Audit Departments; External: Attorney. However, depending on the matter, further responses may be conducted by the Audit & Supervisory Board) for not only matters that are in violationof laws and regulations, but also concerns or questions in line with the SMM Group Code of Conduct. The source of the informationis always kept secret and if, for any reason, the informant is treated unfairly, the person who initiated the unfair treatment will bepunished appropriately.
The Whistle-blowing System covers not only matters experienced by individuals, but also those that are raised for the purpose of
seeking advice regarding responsible corporate conduct within the business’ activities and transactions (including those related to
GRI 2-26).
In FY2022, a total of 11 incidents were reported across the Group, including those reported to affiliated companies’ independent
hotlines. In addition, three consultations were received by employees and others.
Further, to understand whether the Whistle-blowing System is instilled throughout the Group, an employee awareness survey
asks questions regarding whistleblowing and compliance, the results of which are analyzed. In addition, the General Manager of theLegal Department gives lectures on compliance and the Whistle-blowing System during regularly held training sessions.

 Number of reports received (FY2022)
CategoryP articipants of Compliance Education (FY2022)
NumberHuman resource systems

1

Power harassment

6

Workplace communication

2

Privacy1

Violation of employment regulation by employees

1

Relationships with business partners

1Business processing

1

Quality errors

1

Total

14

Eleven consultations were received through the Whistle-blowing System, with three
additional consultations through other means
One matter related to GRI 2-26 (systems for seeking advice and raising concerns) was
raised, which was in duplicate of the abovementioned consultation
All reports were handled appropriately

Type of seminar
Compliance seminar for general managers
Compliance seminar for officers
Introduction to import/export trade control
Briefing on the Revised Competition Law
Compliance ProgramJCO Study Center training
Training for new employees
Training for mid-career hires
Seminar for newly promoted employees(section managers)

Classification

GRI 205-2
Participants

SMM Group Code of Conduct (Revised on October 1, 2022)
All officers and employees shall act in accordance with the following Code of Conduct so as to live up to the SMM Group
Corporate Philosophy.

1. Compliance: Abidance by Laws and Rules

10. Collection, Management and Usage of Information• We will comply with foreign and domestic laws and rules, and conform to social norms.
• We will never under any circumstances commit an infraction of thelaw or act counter to social norms, even if doing so would seem to
be in the company’s interests.

• We will collect information swiftly, properly and lawfully, manage itappropriately, and use it effectively.
• We will utilize information acquired in conjunction with corporate
business expressly for that purpose only, and will not leak suchinformation to any third party.

2. Respect for Individuals

11. Handling of Intellectual Property• We will accept diversity and respect the individuality and rights ofpeople.
• We will never violate human rights, engage in discriminatory conduct, or contribute to such conduct.

• We will nurture and maintain conscious recognition of the importance of intellectual property as a vital asset of the Group, andstrive toward the creation of such property.
• We will strive to properly protect and effectively use all corporate
intellectual properties; we will also respect intellectual propertiesof other parties.

3. Assurance of Health and Safety• We will give highest priority to ensuring the physical and emotional health and safety of all persons affected by our operations.

4. Development of Human Resources• We will strive to nurture junior colleagues and successors throughsystematic training and by providing them with opportunities toplay an active role, and will take steps to help them shape theircareers.
• We will pursue self-improvement with an awareness of our own
growth.

5. Risk Management• We will strive to identify risks, prevent their occurrence, and if risks
occur, minimize the effects.

Officers25

6. Adherence to a Progressive Stance• We will approach transformation with a positive and progressive
attitude without clinging to conventions and practices.

7. A Prideworthy, Rewarding, and Joyful Workplace
Employees

1,215• We will place high value on teamwork, in the form of cooperation
both with other organizations and with fellow employees.
• We will contribute to creating a free and open-minded workplace
conducive to the smooth transfer of required information and thetimely performance of reporting, liaison and consultation.
• We will strive to foster a corporate culture in which people accept
and believe in each other and respect diverse values.

8. In Harmony with Society and Local Communities• As members of society, we will participate in social contribution
activities in accordance with our personal beliefs.
• We will strive toward a harmonious and mutually beneficial relationship with local communities.

9. Separation of Corporate Business and Personal Affairs• We will at all times conduct ourselves based on sound judgment,
and make a clear distinction between corporate business and our
personal affairs.

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12. Assurance of Quality• We will continuously improve quality management systems andprovide products and services that satisfy customers.
• We will enhance technologies and seek to engage in manufacturing that takes into account customers’ safety and theirenvironment.

13. Stance toward Performance of Sales and Purchasing• We will comply with competition laws and conduct sales and purchasing activities based on fair competition.

14. Stance toward Entertainment and Gifts• We will entertain and present gifts to others, and accept entertainment and gifts, within the proper limits of both the law and social
acceptability.
• We will comply with laws against bribery and will maintain healthy
and proper relationships with government and politicalorganizations.

15. Severance of Relationships with Socially Disruptive
Forces• We will staunchly eliminate socially disruptive forces and have no
relations whatsoever with them.

16. Concern for the Global Environment• We will act in a manner that enables us to contribute to solving
global environmental problems by reducing greenhouse gas emissions, taking biodiversity into consideration, and making effective
use of water resources so as to create a decarbonized society, anadvanced Sound Material-Cycle Society, and a society in harmony
with nature.

17. Attitude in the Performance of Global Business
Activities• We will strive to interact with people in the countries or regions
where we undertake business and engage in conduct that
respects local culture and practices as well as globally accepted
norms and their spirit.

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Governance GovernanceTax GovernanceApproach and Policy

GRI 207-1

The SMM Group comprehensively investigates and examines the relationships of its products to customers and local communities to develop business in a sustainable manner. Through sound corporate activities, we work toward the maximization of our after-tax profit and free cash flow to maximize corporate
value and achieve our long-term vision.
As part of this, we also examine matters in terms of taxation, such as the status of tax treaties with countries where mines or plants are located, areas near key customers and markets, and countries where we dobusiness. By continuing to comply with international tax standards and other related matters, and by fulfilling our tax filing and payment obligations appropriately and fairly, we will strive to coexist with local
communities and countries where we do business.
The Sumitomo Metal Mining Group’s Basic Policy on Taxes, established and announced on April 1, 2021
with the approval of our Board of Directors, is based on this approach.

Sumitomo Metal Mining Group’s Basic Policy on Taxes
Basic Policy
Sumitomo Metal Mining (SMM) will, in the conduct of tax affairs associated with business activities, define the basic policy on taxes herein,
pursuant to the SMM Group Corporate Philosophy that dictates “SMM, in accordance with the Sumitomo Business Spirit, shall, through theperformance of sound corporate activities and the promotion of sustainable co-existence with the global environment, seek to make positive contributions to society and to fulfill its responsibilities to its stakeholders, in order to win ever greater trust.”
In addition, SMM and all Group companies will make known to and instill in employees the activities that place importance on compliance focus, maximization of corporate value, and appropriateness and fairness.

1. Tax-related internal controls

4. Response to transfer pricing

At SMM and all Group companies, all persons (corporate officers including
executive officers, and employees including fixed-term and temporary
employees) engaged in considering or implementing tax-related businessprocesses or individual transactions will share this Basic Policy and ensure
tax transparency.
SMM and all Group companies will also seek to resolve tax issues for theentire Group and at each company, by maintaining a system that manages
tax risk in each country and region and by business process and that sharesinformation globally.

International transactions between SMM and all Group companies will be
performed using arm’s length pricing that is calculated based on methods
reflecting the transaction details, industry practices, or functional and risk
analysis. In conducting a functional and risk analysis of each transaction,
there will be compliance with tax-related standards and guidelines published by international institutions and others such as the OECD.

2. Compliance with tax laws, etc.
Business activities will be conducted in compliance with the tax laws, tax
conventions, and other relevant laws and regulations applicable in eachcountry and region, as well as tax-related standards and guidelines published by international institutions and others such as the Organisation for
Economic Co-operation and Development (OECD).

3. Treatment as part of business activities
SMM and all Group companies will practice the tax studies and implementation related to any business process and transaction as part of business activities, since tax-related risk and tax expenses are closely linked to businessprocesses and individual transactions arising from such business activities.
SMM and all Group companies will work to minimize global tax risk,such as double taxation related to business activities, through advancepricing arrangements with the tax authorities, consultation with outside
experts, and other means. At the same time, SMM and all Group companies will seek to maximize corporate value and achieve its long-term vision,
through proactive and constant efforts to utilize tax incentives and optimize tax expenses, tax payment periods, and other factors so that it can
maximize after-tax profit and free cash flow.
However, the following types of transactions will not be practiced:
1) Transactions aimed solely at avoiding tax, such as transactions using
tax havens; and2) Transactions that avoid tax through the transfer of income in forms
that clearly depart from the Group’s business objectives and economic realities.

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The arm’s length pricing methods primarily applied:1) Method based on market price according to an appropriate benchmark in line with industry practice; and2) Method based on appropriate allocation of profits corresponding to
the level of contribution founded on a functional and risk analysis.
5. Fair and appropriate tax

Decision-Making Concerning Taxes, Oversight by the Board of Directors,
and the Role of Audit & Supervisory Board Members

GRI 207-2

At SMM, an executive officer is responsible for the Finance & Accounting Department, which is in charge of taxes. The officer manages and oversees the daily execution of tax-related duties that are performed by the department staff.
We work to improve and operate our tax governance system, with the president and the Board of Directors playing roles as
noted below.
T he Company has established, maintains, and effectively operates an internal control system for financial closing operations that enables theGroup to conduct appropriate accounting work, reporting of results, and other tasks, including tax-related matters. The Internal Audit Department
evaluates the effectiveness of the internal control system, and reports the results to the president.
T ax filing and payment in the Group are handled at the level of individual companies, after confirmation of content by representatives of the companies. The Company files and pays income and other taxes as a company after approval by the president. When a tax audit is conducted, theexecutive officer in charge of the Finance & Accounting Department reports on the progress of the audit to the president. In cases in which additional payments or tax refunds arise due to differences with tax authorities in interpretations or opinions concerning laws and regulations, thematter is handled with the approval of the president.
 hen making decisions on matters such as investment projects, the Group conducts examinations that include tax-related matters and riskWassessments. Particularly important projects are taken up by the Board of Directors for approval.

The Audit & Supervisory Board members ensure the appropriateness of tax-related practices and policies through the following
roles.


 udit & Supervisory Board members verify the appropriateness of financial closing operations, including tax calculations and tax effect accountA
ing, through audits conducted by the independent public accountant. In addition, when necessary, they pose questions to the independent public accountant to clarify tax-related issues.
 udit & Supervisory Board members receive reports from the internal audit department and the independent public accountant regarding theA
results of their evaluation of the effectiveness of the development and operation of the internal control system for financial closing operations,
including tax-related matters, and subsequently review the contents of the reports.
 hen the president approves the filing and payment of income or other taxes on behalf of the Company, the Audit & Supervisory Board members
Wreview the documentation to confirm that filings and payments are properly managed within the Company.
 hen the president approves the development of a tax policy, the Audit & Supervisory Board members review the documentation and confirm
W
that the tax policy is properly developed within the Company.

Initiatives for Tax-Related Compliance

GRI 207-1/207-2

SMM and all Group companies will appropriately fulfill its tax payment
obligations in compliance with applicable tax laws and other legal requirements at business activities in each country and region. In addition, SMM
and all Group companies will seek to increase tax transparency and tobuild a constructive and fair relationship with the national or regional tax
authorities.

Compliance* is the cornerstone of the Group’s corporate activities. In accordance with the Sumitomo Metal Mining Group’s Basic
Policy on Taxes, the SMM Group endeavors to adhere to tax laws, tax treaties, and other relevant laws and regulations applicable inthe countries and regions where its mines or plants are located. Additionally, the Group follows tax-related standards published byinternational organizations such as the Organisation for Economic Co-operation and Development (OECD). As part of these efforts,
we not only ensure our operations comply with laws and regulations, but also provide education and training to our staff.

6. Tax-related responsibilities and structure* Compliance

SMM and all Group companies’ tax activities will manage tax risks on a
global basis and implement appropriate and fair tax treatments, subject tooversight by the executive officer in charge of SMM’s Finance & Accounting
Department, through the employees in charge of tax matters in the
Finance & Accounting Department and the Group companies of relevant
divisions operating in their respective countries and regions.
Moreover, employees with tax expertise will be assigned as necessary;and education and opportunities to increase tax knowledge will be provided to employees involved in tax considerations and implementation forbusiness processes and individual transactions.

P.176-179

Tax-Related Information Collection and Initiatives Involving Government, etc.

GRI 207-3

Through our activities as a member of the Japan Mining Industry Association, we make inquiries, collect information on, andexpress opinions to governmental agencies with regard to matters such as industrial policy and tax reform.
When the Group encounters issues involving interpretations of laws and regulations or specific procedural matters, we work toproperly carry out tax-related matters through prior inquiries and consultations with tax authorities and outside experts.
Income Tax by Country or Region

P.161

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Governance GovernanceRisk Management

Review of Company-wide Risk Management

Approach and Policy
PolicyThe SMM Group engages in risk management (RM) under the following Six Principles established toachieve our long-term vision in becoming the world leader in the non-ferrous metals industry.
1. The organizational leader confronting the risk is the responsible party
2. Compliance is the foundation
3. Recognize that potential risks can materialize and take necessary risk countermeasures
4. Risks recognized as a result of change are shared among all parties involved
5. I mplement RM in daily operations, considering the organization’s hierarchy, size, role, and maturity,
regional and cultural factors, and the knowledge, views, and values of stakeholders

In reflecting on the JCO criticality accident that occurred in 1999, our RM system (RMS) was established with the president bearing
ultimate oversight responsibility, focusing mainly on the prevention of serious accidents at our sites, and has been effective in preventing industrial accidents and other accidents that have a large societal impact. On the other hand, in response to the changing
demands from the business environment and society, as well as increasing complexity and sophistication of risks associated withgrowth and business strategies, we have repositioned RM from the prevention of major accidents at business sites to the creationand protection of the organization’s value. We have reviewed and updated Group-wide RMS based on three frameworks (see diagram below). Further, we have established a system to address the risks and changes surrounding our Group through the Risk
Management Working Group, which promotes and monitors Group-wide policies and priority measures.

6. Conduct ongoing reviews and improvements of management framework and initiatives

Business risk

Business risk management
Operational risk management

Corrective action

The definition of risk at our Group includes both that which is beneficial to our goals and that which is detrimental to them. We see risk as something that will have an effect on the achievement of business andorganizational goals and that makes the protection or creation of value uncertain. Through risk management, we are able to revise goals and measures to maximize those risks which are beneficial, and inspect
and improve processes to minimize those risks which are detrimental. This helps us achieve our 3-YearBusiness Plan, and ties into further ensuring the realization of our Vision for 2030 and our long-term vision.

Prior consideration
Prevention measures

Approach

Crisismanagement(risk accompanying growth and business strategy)

Site-specific risk
(risk of undermining the stability of management)

Promotion Structure

Framework

RM will be promoted through the efforts of the president, who bears ultimate oversight responsibility for RM, and the head of eachbusiness division and business site as the person responsible for RM within their unit.
The Risk Management Working Group, operating under the Sustainability Committee and is served by the Safety & Environment
Control Department as secretariat, has a system in place to respond to risks and changes in the Group’s business environment bypromoting and monitoring Group-wide policies and priority measures.
In addition, the Risk Management Promotion Meeting serves to promote and monitor the Group’s risk reduction and operationand improvement of RM.
 Promotion Structure

Regarding management and business risks associated with our Group’s growth and business strategies, we have a mechanism toaddress critical Group-wide risks, deemed particularly important for the achievement of not only initiatives such as management
meetings, various committee meetings, medium-term plans, budgets, settlements and monthly activities, but also for the achievement of strategic goals (3-Year Business Plan). The critical Group-wide risks are discussed in management meetings attended byexecutive officers, including the president, and deliberated by the Board of Directors. Response policies are established, and eachdepartment’s initiatives are monitored and promoted through the Risk Management Working Group.

Operational Risk Management
Sustainability Committee
President
Risk Management Working Group
Chair: Executive officer in charge of the Corporate
Planning Department
Deputy Chair: Executive officer in charge of the Safety &Environment Control Department
Members

PolicyReport on initiatives

Department in charge(business division, etc.)

Business sites (plants, mines, Group companies, etc.)
Risk Management Promotion Committee

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At each business site, in addition to focusing on specific risks addressed annually, risks inherent in regular operations are also identified and assessed based on internal and external conditions, and are managed as individual risks (see table below). There are over
1,400 individual risks, and as a means of reducing risks daily, when there are any changes to environments and conditions that serve
as prerequisites for identified risks (business environments, work environments, people, equipment, work procedures, quality standards, etc.), these risks are reviewed and updated, or handled as new risks. A periodical risk review is also undertaken during the RM
Promotion Campaign every September.
Serious risk categories• Explosions and fires• Environmental pollution• Natural disasters• Legal violations• Quality failure• Occupational accidents• Terrorism / abduction• Pandemics• Supply chain disruptions• Information leaks• Damage from harmful rumors• Violation of intellectual property
rights• Other risks include those originating from moral misconduct, suchas fraudulent accounting, humanrights issues, and malfeasance

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Governance GovernanceRisk Management

Crisis Management
In preparation for crises beyond assumed scenarios of management and site-risk management, as well as instances where on-site
handling is challenging, a standing Crisis Management Committee chaired by the officer responsible for crisis management wasestablished. The committee works toward the sharing of crisis information, the formulation and improvement of proactive measures, and the maintenance and strengthening of crisis management functions through training. It also deliberates on initial
response to emergencies, and transition into Group-wide response headquarters which takes appropriate actions and provides
support based on the level of crisis. The president has ultimate responsibility for crisis management as a whole.
At every business site, we are advancing measures to address earthquakes, tsunamis, flooding, soil liquefaction, landslides, volcanic eruptions, and other natural disasters, in line with the hazard level. We are undertaking seismic reinforcement of buildings,
improvement of seawalls, strengthening of wastewater treatment capacity, expansion of water storage tanks, stockpiling of foodand drinks, and enhancement of emergency supplies, among other measures. We also conduct training for earthquakes, fires, environmental accidents, and overseas terrorism, riots, and kidnappings, among other scenarios. In addition, we are working to address
issues such as unfamiliarity with materials and equipment, insufficient understanding of rules and procedures, and inadequate
manuals, and to improve the decision-making capabilities of local task force members.

Future Initiatives
For FY2023, we will continue with the FY2022 RM policy of “Assess and respond to changes in risks caused by changes inside andoutside the Company,” and based on revisions to Group-wide RM, will focus on reassessing risks and reviewing crisis measures,
including major Group-wide risks and disasters as priority initiatives.
Revisions to Group-wide RM in FY2022 primarily focused on system aspects, and in FY2023 we are in the execution phase of
these measures. In doing so, the entire Group will reassess risks and review crisis countermeasures to improve and streamline
activities.
Further, events such as Russia’s invasion of Ukraine and the U.S. Speaker of the House’s visit to Taiwan have escalated tensions
between Western countries and China-Russia. In Japan, we have seen instances of attacks during election campaign speeches, targeting both former and current prime ministers. Considering the heightened risks toward national security, we will focus on
enhancing overseas crisis management, with emphasis on preparedness for a Taiwan contingency, and prevention of and response
to unlawful detention in China, etc. With regard to natural disasters, in light of ongoing threats with earthquakes on the Noto
Peninsula in June 2022 and May 2023, with a seismic intensity of under 6 and over 6, respectively, and the “Damage Estimation inTokyo resulting from a Tokyo Inland Earthquake (May 2022)” released by the Tokyo Metropolitan Government, we will work towardenhancing the Group-wide disaster preparedness measure based on the diversification of work styles, changes in values and social
norms, and advancements in equipment and materials.
In tandem with these efforts, our top management continues to lead activities to prevent issues such as compliance breaches,
environmental accidents, occupational accidents, and quality issues, to ensure success in new business and projects, and achievement of business goals.

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Governance Governance

Quality Assurance

SMM Quality Objectives

The SMM Group has established and operates a business model based on 3-business collaboration
between the Mineral Resources, Smelting & Refining, and Materials Businesses. Through this businessmodel, we endeavor to continuously improve products and respond to changing customer needs in orderto deliver quality that satisfies customers.
To provide quality that satisfies customers, the president has established a Company-Wide Quality
Policy and sets SMM Quality Objectives every year. Based on these standards, each business division sets
forth and implements division-specific quality targets and conducts quality activities that are aligned
across the entire SMM Group.
Provide quality to satisfy our customers through continual improvements of quality
assurance and control systems.

Company-Wide
Quality Policy• Pursue quality levels that stand out from the trends of the time• Abide by laws and rules and strive to create products incorporating safety and environmental
considerations

Quality Assurance Promotion Framework
With the president bearing ultimate oversight responsibility, we have appointed an executive officer in charge of the Quality
Assurance Department to drive quality assurance initiatives. Each business division develops and maintains their own quality assurance framework, while the Quality Assurance Department manages quality across the entire Group and ensures a Group-wide unified approach.
Additionally, not only does the Quality Assurance Working Group—which comes under the Sustainability Committee—deliberate key measures for promoting quality assurance activities, it works to improve the Group’s quality management systems (QMS)
through the sharing of information on progress toward departmental targets and quality control status including the reduction of
the number of complaints against the Company.
In addition, quality assurance managers from the various business divisions and business sites, along with members of the head
office’s Quality Assurance Department hold an annual quality meeting to share the quality management status of each businesssite and quality issues common across the entire Group.
 Promotion Structure
Sustainability Committee
President
Functional instructions
Comprehensive management and support

Quality Assurance
Working Group
Chair: General Manager of Quality
Assurance Department
Members

PolicyReport on initiatives

Department in charge(business division, etc.)

Quality Assurance
Department
Quality meeting

Quality assurance managers,
department in charge
Share information

Business sites (plants, mines, Group companies, etc.)
Quality assurance managers,
business site

FY2023 Company-Wide Quality Policy
Drive QMS improvements to achieve zero major quality complaints and create a structure that earns customer trust.
• Zero major quality complaints. Prevent complaints on quality that could jeopardize our business foundation• Zero occurrences of quality misconduct• Achieve complaint goals within business divisions

Quality Complaints
The chart to the right illustrates the trend of quality claims
since FY2014 for the entire Group.
Quality complaints declined gradually from FY2014
onwards, and in FY2022, the number of complaints had
reduced to approximately one-third of that of FY2014. We
believe that this is due to the effective implementation ofquality improvement initiatives at each business division andbusiness site, and the impact of QMS.

 Quality complaints (with FY2014 data as 100)
120
Ratio of the number of complaints

Approach and Policy

100
80
60
40
20
0
(FY)

2014

2015

2016

2017

2018

2019

2020

2021

2022

Quality Improvement Initiatives
Improving Effectiveness of Quality Management Systems PDCA cycle for QMS improvement in SMM Quality Standards
The SMM Group has established and operates QMS at its
business divisions and business sites. For such QMS to funcBased on SMM Quality Standards
Self-assessment
tion effectively, we have been conducting improvement
Identify weaknesses and strengths of
one’s own organization
activities based on the SMM Quality Standards, which constiGoal setting
Evaluation and revision oftute a summary of the ideal form of QMS at our Company.
P
Goal setting to improve on
improvement details
Every fiscal year, each business site sets a target level for the
weaknesses
Corrections based on
Focus-oriented goal setting
audit results
SMM Quality Standards prior to engaging in improvement
Improving
Corrections based
activities, and—while assessing these activities through interEffectivenesson assessments ofinitiativesof Quality
nal quality audits and quality audits by the Quality AssuranceA
D
Management
Department—undertakes self-assessments of its level of
Systems
quality achieved as of the end of the fiscal year. The effectiveInitiatives towardachieving goals
ness of QMS at business sites is continually being improved
Executing improvement
C
Quality audits by the Quality
by setting new targets for the next fiscal year based on themeasures
Assurance Department
Monitoring and assessing
results of these assessments and then conducting improveInternal quality audits at
improvements
ment activities.
business sites
Evaluation of initiatives at business
The SMM Quality Standards categorizes requirements into
sites
eight sections, with content based on prior incidents, allowing us to identify strengths and weaknesses of each businesssite, and to focus on improving such weaknesses.
The SMM Quality Standards are revised each year to raise QMS to the level required by the Group so that we can deliver qualitythat satisfies customers.

Business site division(s)(department(s), section(s), etc.)

186

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Governance Governance

Quality Assurance Overall picture of QMS and applicable items in SMM Quality Standards
Corporate Philosophy
Business Strategy

Chapter 5

Chapter 6

Chapter 8

Equipment and measurement instruments

Management of external
provisions

Knowledge, awareness,and competence

Needs and expectations of stakeholders

Chapter 2

Internal andexternal issues

Internal audit and management review

Leadership and customer focus

Chapter 1

Expansion of Group-Wide Education on Quality

Resources

Competence andawareness
Control managers

Input

Process

OutputWe provide training on quality based on our education system that aims to equip each level of employee, from new employees tomanagers, with necessary quality-related knowledge and management ability. With the aim to acquire wide-ranging quality-related
knowledge and enhance awareness, SMM Hinkaku,* an e-learning program for all employees launched in FY2019, with approximately 5,900 employees taking the course in FY2021. SMM Hinkaku will be used for the education of new employees andtransferees.
As a shortage is expected of human resources capable of assuming responsibility for quality in the future, training is conductedGroup-wide to nurture people responsible for quality. Four practical training sessions a year are conducted to improve the effectiveness of the QMS by rolling out SMM Quality Standards to the business divisions. After completion, the trainees will determine
issues to be addressed at their own business sites and aim to accomplish these issues by utilizing what they have learned in the
training program. The Quality Assurance Department also follows up on the progress of the initiatives. The training was completed
by roughly 25 employees in FY2022 and is currently participated by 20 employees in FY2023.
* Trainees learn the minimum level of knowledge and awareness regarding quality required for manufacturing and then their proficiency is graded through a test

Methods (monitoring andmeasuring)

Intended resultsof QMS

Chapter 3

Key Performance
Indicators (KPIs)

Chapter 4

Determination ofrequirements
Policies andobjectives

Chapter 7

Change management andinitial flow management

Corrective action andfraud prevention

Improvements

Disclosure of Information on Products and Services

GRI 416-1

Most items in the SMM Group product lineup are supplied as raw or processed materials for use by customers for manufacturing.
Information that customers require to handle our Group’s products properly from safety and environmental perspectives, as well as
information needed to enable them to supply products, is communicated in product specifications at the time of contracting,during technical discussions, and via product inspection certificates and safety data sheets (SDS),1 based on prior and the latest
information, our Group’s proprietary knowledge, and necessary studies. SMM products supplied to customers are carefully
designed, incorporating considerations toward safety and environmental compatibility, and are only delivered after thorough trials
and inspections carried out during their manufacture2. We make sure that information utilized for the above is always appropriate
through quality management systems, reviewing it based upon the latest technology, laws and regulations and demands from
customers.
1. SDS (Safety Data Sheet): A document listing information on a chemical product, including the chemical substance, the product name, the supplier, hazards, safety precautions andemergency procedures
2. We also conduct surveys linked to life cycle assessments (LCA) for copper, nickel, and zinc through associations related to each metal

Strengthening of Our Internal Quality Audits

Communication with Customers

Based on the SMM Quality Standards, we currently aim to carry out activities to achieve internal quality audits which work with athird-party-like perspective to identify potential internal issues from problems that have been found, and relay these findings to top
management. We hold training to cultivate internal quality auditors at business sites in Japan, turning out roughly 450 internal
quality auditors from FY2019 to FY2022. We operate a PDCA cycle to develop these internal auditors, and confirm their effectiveness through supervised audits by trained internal auditors.
To prevent quality-related misconduct such as falsification of inspection or testing data, we provide Group-wide quality fraud
prevention training opportunities using e-learning. In addition, Group-wide efforts are made to deter misconduct, including internal quality audits to guarantee product quality and to confirm the reliability of inspection or testing data, automated transfer
thereof to avoid human intervention, and if such automation is difficult, administrative measures are enhanced.

Business divisions and business sites take the initiative in conducting customer satisfaction surveys. The results are fed back to thesales and development divisions. To enhance customer satisfaction, we are constantly improving our methods of measuring andassessing customer satisfaction, accurately identify issues through precise and sufficient communication with our customers, andexecute effective measures. Through quality improvement activities, we contribute to resource and energy conservation by improving product yield.

Business sites
Quality management systems

AuditsAudits•P rocess operations, and conformance effectiveness•P revention of quality fraud, and data reliability

Sustainability Report 2023

Quality audits
QMS mechanisms and effectiveness across business sites

Reports on
audit results

Internal quality audits

SUMITOMO METAL MINING CO., LTD.

Quality that earns customers’ trust is achieved only when all employees align their goals and directions and actively engage inactivities to achieve targets. To enable this, we clarify issues based on facts obtained through communication inside and outside
the Group, set targets, and work to achieve these through active participation by all employees in quality improvement activities
based on our SMM Quality Standards.

Quality Assurance Department

Deployment of SMM quality standards

188

Initiatives to Take on Issues and Provide Improvements

Reports on
audit results

Identify, analyze, and manage audit results
ReportingDirectives

Reporting to heads of business divisions and business sites

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Governance Governance

Quality Assurance

Information on SMM Products Requiring Disclosure by Labeling and Applicable Products/
ServicesGRI 417-1
Information requiring disclosure

Applicable products/services

The sourcing of components of the product or service

All products/services containing substances requiring
management under legislation
Requirement is not applicable to our main products (rawmaterials and internally processed materials)

Content, particularly with regard to substances that might produce environmental orsocial harm

All products/services containing substances requiring
management under legislation

Safe use of the product or service

All products/services containing substances requiring
management under legislation

Environmental/social harm from disposal of the products

All products/services containing substances requiring
management under legislation

Methods for Providing Information
Provision of Information Relating to Specifications
We indicate product specifications requested by the customers on the order received sheet to provide necessary information tothem.

Provision of Information Relating to Chemicals
The SMM Group uses SDS, etc. to provide information on chemical substances contained in products, complying with regulations
for chemical substances and usage, regarding health and safety.

Other Initiatives
The SMM Group also engages in transactions such as the sale of different types of lubricants to general consumers. In line withrelated laws and regulations, we provide information on products and services in this area through labeling, advertisements, andexplanations to ensure correct understanding.

Responding to Product Quality Issues as They Arise
If a quality issue arises in relation to the Group’s products or services, the necessary action will be taken in accordance with the
Quality Assurance Regulations. The business divisions and business sites will immediately check facts, report results of root-cause
analysis and verification to the customer, and agree on the necessary corrective actions and recurrence prevention measures.
In the unlikely event that a serious quality issue occurs, the business division will promptly report the problem to management
and the General Manager of the Quality Assurance Department, who in order to resolve quality issues immediately, will check the
progress of necessary response measures, and confirm the effectiveness of corrective actions and measures to prevent recurrence.

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Governance Governance

Information Security

Response to Information Security Risks

Approach and Policy
FY2023 information security policy: strengthening responses to changing information security threats e will strengthen measures against ransomware, which has been causing numerous incidents in
W
Japan and overseas.
We will work to strengthen the security of control system equipment and systems.

Promotion Structure
To promote information security management throughout the SMM Group, we have established and implemented a security policy consisting of the Information Security Regulations and Group-wide Standards for Information Security.
The Information Security Committee regularly deliberates Group-wide strategies and basic policies regarding information security, as well as Group-wide measures for information security. The Information Security Committee consists of the executive officer
in charge of the Information Systems Department as the Chair, the General Manager of the Information Systems Department as the
Deputy Chair, the general managers of divisions, the General Manager of the Technology Division, the General Manager of theEngineering Division, and the heads of operational divisions in the Head office as committee members, and the secretariat is set up
as the Information Systems Department.
Measures to improve the level of information security are led by the Information Systems Department, and are specifically promoted with the cooperation of the information security promotion managers, who are the heads of the organizational units (plant,
division, branch, etc.) positioned as subordinate structures of the Information Security Committee, and the information security personnel at each site.
In order to facilitate promotion and follow up of the measures, the Information Systems Department serves as the secretariat forthe meetings of personnel in charge of information security, which are held regularly.
The status of implementation of the measures is fed back to the Information Security Committee and actions are taken asnecessary.
 Promotion Structure

To ensure the safety of in-house information assets fromincreasingly sophisticated cyber security attacks, we are taking countermeasures on both a system and human level.
For threats such as cyber-attacks from outside, the SOC,1 towhich we are outsourced, monitors newly detected malware,
targeted e-mails, and other threats 24 hours a day, 365 days ayear. When an abnormality is detected, we have a system inplace where the Information Systems Department is
promptly contacted and, together with the SMM-CSIRT2
quickly implements an appropriate response.
We also educate and train employees through e-learningand targeted e-mail drills to prevent damage fromcyber-attacks.
1. Security Operation Center (SOC): An organization specializing in monitoring andanalyzing information from security devices, taking countermeasures, etc.
2. Computer Security Incident Response Team (CSIRT): The generic name for theorganization that analyzes the causes of computer security problems, investigatesthe scope of impact, and responds

SOC (outsourced)
24/7/365 monitoring &notifications
Internet

Security devices
E-mail, web communications, etc.

Users

Information Systems
Department
SMM-CSIRT
Response and follow-up

Main System Countermeasures• Critical information is stored on servers in an external data center with advanced accident countermeasures, and the data center isprotected by a special security system.
• Internal and external networks are separated by a firewall to protect against cyber-attacks from the outside (Internet).
• For work-from-home and other remote connections, we use a cloud security gateway with a high level of security, rendering thirdparty connections or unauthorized entries impossible.
• All servers and PCs are equipped with EDR* software in addition to anti-virus software. We have a system where EDR software logs
are monitored 24 hours a day, 365 days a year by an external SOC to promptly detect and respond to malware infection.
• We have introduced e-mail and web filters to ensure safe use of e-mail and the Internet by our employees.
• Of the above countermeasure systems, important ones are outsourced to an external SOC that operates 24 hours a day, 365 days ayear to promptly detect and respond to any anomalies.
* EDR: endpoint detection and response

President
Information Systems
Department

Collaborate
and cooperate

Information Security Committee
Chair: Executive officer in charge of the Information Systems Department
Deputy Chair: General Manager of the Information Systems Department
Members: General managers of divisions, General Manager of the Technology
Division, General Manager of the Engineering Division, heads ofoperational divisions in the Head Office

Meetings of personnel in charge of
information security

Support andcollaborate

Main Human Countermeasures• We conduct annual information security education using an e-learning service specialized in the field of cyber security, which isavailable in various languages, for the purpose of deepening employees’ understanding of ever-changing cyber-attack methods
and enhancing security awareness, including staff at our overseas sites.
• To prevent targeted attacks, which can easily lead to malware infection, we conduct targeted attack e-mail drills, in which users aresent simulated e-mails that look like actual attack e-mails, to increase their security sensitivity through first-hand experience.
Results of the above measures are analyzed and fed back to each division and management, and are reflected in the next plan.

Department in charge (business division, etc.)
Business sites (plants, mines, Group companies, etc.)
Information security promotion managers
Personnel in charge of information security

Business site division(s)(department(s), section(s), etc.)

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Governance Governance

Information Security

Response to Security Incidents

FY2022 Results and FY2023 Plan

The SMM-CSIRT, consisting of the Information Systems Department and representatives from user departments, has been established to respond promptly and prevent the spread of damage in the unlikely event of a serious security incident despite the security measures taken.
The Information Systems Department and the user departments work together to respond to incidents and bring them to an
early end, while also working along with external responses.
SMM-CSIRT is a member of the Nippon CSIRT Association (NCA) and cooperates with external organizations.

In FY2022, we introduced EDR software to PCs and servers connected to the SMM Group network, and also deployed it to our overseas sites. For overseas sites, we individually surveyed the operational status of cyber security measures and provided guidance for
improvement. To strengthen human countermeasures, we introduced a multilingual cyber security training system and combined
it with training about suspicious emails to improve users’ security awareness and skills.
In FY2023, we will switch our anti-virus software to deep learning software with high detection capability against unknown malware in order to strengthen endpoint security. In addition, to create a zero-trust network, we will introduce a globally compatible
authentication infrastructure to strengthen the authentication function for users in Japan and overseas.

Key

Information security managers  

CSIRT members

In-house

Management
ReportCollaborate

Safety & Environment
Control Department

Collaborate

General Affairs Department
and Legal Department

Collaborate

Collaborate

Public Relations & Investor
Relations Department

RespondSecurity vendors
External security agencies

Information Systems Department

Collaborate

Information system vendors
Supportresponse

Supportresponse
ReportEngineering
Division

Competent
authorities
News organs

Supportresponse
ReportReportTechnology
Division
Head Office divisions

Respond

RespondBusiness site(s) andbusiness division(s)Respond

Respond

Respond

Customers and business partners

Information Leakage Countermeasures
To ensure the security of customer information, including personal information, and confidential in-house information, the following countermeasures are taken in addition to the above to protect electronic data.
• In principle, the use of USB memory devices is prohibited, but working environments have been designed to permit use whennecessary, under systemic control and upon notification.
• Mobile PCs and other devices that may be taken outside the Company have their disks encrypted so that even if they are stolen or
lost, a third party cannot view the data.
• We use a dedicated file server and an external cloud storage service to store in-house data, and strictly control rights to access.
• Our system monitors communication path logs to promptly detect and respond to unauthorized communications.
• Our system is designed to prevent malware infections from suspicious e-mails by sharing information about suspicious e-mails
that slip through the filtering system with users.

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References References

External Assessments and Awards

We have been recognized by various external evaluation organizations as a company that promotes sustainability
initiatives and have been included in various indices.

External Assessments of Sustainability
MSCI ESG Ratings
An evaluation by U.S.-based MSCI Inc. that measures a company’s exposure to significant ESG (environmental, social, and governance) risks within its industry and the adequacy of its risk management. As of
November 2022, we have received an MSCI ESG rating of AA. (On a 7-point scale from AAA-CCC.)

Inclusion in Indices
Various FTSE Indices*

MSCI ESG Research website

FTSE4Good Index Series
FTSE Blossom Japan Index
FTSE Blossom Japan Sector Relative Index (Continued inclusion in 2023)
We have been selected as a constituent of the FTSE4Good Index Series, the FTSE Blossom Japan Index
and the FTSE Blossom Japan Sector Relative Index. These indices were developed by FTSE Russell, a global
index data provider, to measure the performance of companies that are active in environmental, socialand governance (ESG) practices. The FTSE Blossom Japan Index and the FTSE Blossom Japan Sector
Relative Index are widely used by one of the world’s largest institutional investors, and which manages
Japan’s public pension funds, the Government Pension Investment Fund (GPIF), and others to create andevaluate ESG investment funds and other financial products.
* FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Sumitomo Metal Mining Co.,Ltd. has been independently assessed according to the FTSE4Good criteria, andhas satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance ofcompanies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds
and other products.
FTSE Russell confirms that Sumitomo Metal Mining Co.,Ltd. has been independently assessed according to the index criteria, and has satisfied the requirements to become a constituent of the FTSE Blossom Japan
Index. Created by the global index and data provider FTSE Russell, the FTSE Blossom Japan Index is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance(ESG) practices. The FTSE Blossom Japan Index is used by a wide variety of market participants to create and assess responsible investment funds and other products.
FTSE Russell confirms that Sumitomo Metal Mining Co.,Ltd. has been independently assessed according to the index criteria, and has satisfied the requirements to become a constituent of the FTSE Blossom Japan
Sector Relative Index. The FTSE Blossom Japan Sector Relative Index is used by a wide variety of market participants to create and assess responsible investment funds and other products.

FTSE4Good Index Series

FTSE Blossom Japan Index Series

https://www.ftserussell.com/products/indices/ftse4good

https://www.ftserussell.com/products/indices/blossom-japan

https://www.msci.com/our-solutions/esg-investing

CDP
CDP is an ESG evaluation organization that evaluates more than 13,000 companies worldwide on theirstrategies to address climate change and their efforts to reduce greenhouse gas emissions. Each company is evaluated using an independent method based on the comprehensiveness of its disclosure, risk
management, high goal setting, leadership, and other information and assigned a score from A to D-. We
have been responding to CDP’s questionnaire since 2014. As a result of our response to the CDP questionnaire in 2022, we received a rating of B for Climate Change and A- for Water Security.
CDP
https://www.cdp.net/en

Kurumin certification
We formulated an action plan for general business owners based on the Act on Advancement of
Measures to Support Raising Next-Generation Children. In 2022, by achieving the goals set in the planand meeting standards, we received the Kurumin certification from the Minister of Health, Labour andWelfare as a company supporting childcare.
SMM’s Action Plan based on the Act on Advancement of Measures to Support Raising Next-Generation Children
https://ryouritsu.mhlw.go.jp/hiroba/planfile/202204011010323690814_1.pdf (Japanese Only)

MSCI ESG Leaders Indexes* (Continued inclusion in 2023)

Health & Productivity Management Outstanding Organization

Equity indices created by U.S.-based MSCI, Inc., consisting of companies that have received high ESG
ratings.

The Certified Health & Productivity Management Outstanding Organizations Recognition Program recognizes corporations, including large enterprises and small and medium-sized companies, that practice particularly excellent health and productivity management based on their promotion of health as set forth
by the Nippon Kenko Kaigi and efforts to address local health issues. In 2023, we were certified as a Health& Productivity Management Outstanding Organization (large enterprises category).

MSCI Japan ESG Select Leaders Index* (Continued inclusion in 2023)
An equity index created by U.S.-based MSCI, Inc., consisting of listed companies in Japan with excellent
ESG ratings, and is one of the ESG indices selected by the Government Pension Investment Fund (GPIF).
* THE INCLUSION OF SUMITOMO METAL MINING CO., LTD.(SMM) IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP,
ENDORSEMENT OR PROMOTION OF SMM BY MSCI OR ANY OF ITS AFFILIATES.

Health & Productivity Management Outstanding Organization
https://www.smm.co.jp/news/release/uploaded_files/20230309.pdf (Japanese Only)

THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

MSCI Japan ESG Select Leaders Index
https://www.msci.com/msci-esg-leaders-indexes

S&P/JPX Carbon Efficient Index (Continued inclusion in 2023)
This index is provided by S&P Dow Jones Indices and the Tokyo Stock Exchange (TSE). Component stocks
are weighted against TOPIX component stocks based on their environmental initiatives, such as environmental information disclosure and carbon efficiency levels. It is one of the ESG indices used by theGovernment Pension Investment Fund (GPIF).
S&P/JPX Carbon Efficient Index
https://www.jpx.co.jp/english/markets/indices/carbon-efficient/index.html

196

External Assessments of Reporting
NIKKEI Integrated Report Award 2022
The Nikkei Integrated Report Award 2022 sponsored by Nikkei Inc. awarded the Nikkei Integrated Report
Grand Prix S Award to the SMM Group for our explanation of KPI formulation for ESG items, including theidentification process, our definition of SMM Group policy on human rights, our setting the rights ofindigenous peoples as a material issue, and our descriptions of initiatives for improvement, including
those in our supply chains. S corresponds to the Society category of ESG.
NIKKEI Integrated Reporting Award 2022 Winnerhttps://www.smm.co.jp/news/release/uploaded_files/20230323.pdf (Japanese Only)

JPX-Nikkei Index 400 (Continued inclusion in 2023)

WICI Japan Integrated Reporting Award 2022

We have been selected to be included in the JPX-Nikkei Index 400, a stock price index jointly managed by
JPX Market Innovation & Research, Inc. and Nikkei Inc. This index is composed of companies that meetglobal investment criteria in terms of finance and management and are highly attractive to investors.

This award was established by general incorporated association WICI Japan as a measure to promote integrated reporting in Japan. We received the Encouragement Award in 2017, the Bronze Award for two
consecutive years in 2020 and 2021, and the Silver Award in 2022.

JPX-Nikkei Index 400

WICI Japan Integrated Reporting Award 2022 Winnerhttps://www.jpx.co.jp/english/markets/indices/jpx-nikkei400/index.html

https://www.smm.co.jp/news/release/uploaded_files/20221202.pdf (Japanese Only)

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References References

Independent Assurance Report

198

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References References

GRI Content Index

OmittedStatement of use	Sumitomo Metal Mining Co., Ltd. has reported the information cited in this GRI content index forthe period April 1, 2022 to March 31, 2023 with reference to the GRI Standards.

GRI Standard/
Other Sources

Disclosure

Item

Page
number(s)2-12Role of the highest governance bodyin overseeing the management of
impacts

Sustainability Promotion Structure
Decision-Making and Supervisory System

20-23
166-167

2-13

Delegation of responsibility for
managing impacts

Sustainability Promotion Structure
Decision-Making and Supervisory System

20-23
166-167

2-14

Role of the highest governance bodyin sustainability reporting

Sustainability Promotion Structure

20-23

GRI 1 used	GRI 1: Foundation 2021
GRI Sector Standard	GRI Sector Standard for Mining (Draft)

General Disclosures
OmittedGRI Standard/
Other Sources

Disclosure

Item

Page
number(s)GRI 2: General Disclosures 2021
1. The organization and its reporting practices

Items
omittedReasons

2-15

Conflicts of interest

Decision-Making and Supervisory System

166-167

2-16

Communication of critical concerns

Decision-Making and Supervisory System
Responding to Compliance Issues

166-167177

2-17

Collective knowledge of the highest
governance bodyTraining Policy for Directors and Audit and Supervisory
Board Members

170-1712-18

Evaluation of the performance of thehighest governance body

Analysis and Evaluation of the Effectiveness of the Board
as a whole, and the Results
172-173

Explanation

2-1

Organizational details

Editorial Policy

12-2

Entities included in the organization’ssustainability reporting

Editorial Policy
SMM Group Overview

1
8-9

2-19

Remuneration policies

Basic Policy and Procedures for Remuneration of
Directors

171

Process to determine remuneration

Basic Policy and Procedures for Remuneration of
Directors

171

Annual total compensation ratio

Annual Total Compensation Ratios (FY2022)

172

2-3

Reporting period, frequency andcontact point

Editorial Policy

1

2-20

2-4

Restatements of information

Environmental Data: Rehabilitated Area
Social Data: Number of Officers and Employees (by country andregion)Social Data: Number of Officers and Employees (by age groupand employee category)Social Data: Time Spent on and Investment in Employee
Education

73

2-21

Editorial Policy
Independent Assurance Report1
198-199

2-5

External assurance

147

Activities, value chain and otherbusiness relationships

Sustainability Issues in the Value Chain
SMM Group Overview
SMM Group Business Model

2-7

Employees

Social Data: Number of Officers and Employees (by country andregion)Social Data: Number of Officers and Employees (by age groupand employee category)

2-8

Workers who are not employees

Social Data: Number of Officers and Employees (by age groupand employee category)

Statement on sustainable
development strategy

Long-Term Vision
Message from the President
Sumitomo Metal Mining Group Sustainability Policy

3
16-19
20

2-23

Policy commitments

Sumitomo Metal Mining Group Sustainability Policy
Outline of SMM Group’s human rights policy
The Sumitomo Metal Mining Group Policy on Human
Rights

20
77

2-24

Embedding policy commitments

Sustainability Promotion Structure
Putting Sustainability Promotion Activities into Practice
Penetration of Sustainability Promotion Activities
Business and Human Rights: Promotion Structure
Outline of SMM Group’s human rights policy
The Sumitomo Metal Mining Group Policy on Human
RightsRights of Indigenous Peoples: Promotion Structure
Initiatives through Dialogue at Workplaces
Implementation of In-house Education
Human Rights in the Supply Chain: Promotion Structure
Responsible Mineral Sourcing
Initiatives Related to Sustainable Procurement

20-23
23
23
76
77

Business and Human Rights: Approach and Policy
Human Rights Due Diligence Initiatives
Grievance Mechanism: Membership in JaCER
Acknowledging Grievances and Providing Explanations
for Relocations
Initiatives through Dialogue at Workplaces
Dialogue with Experts, NGOs, and NPOs
Implementation of In-house Education
Responsible Mineral Sourcing
Initiatives Related to Sustainable Procurement
Responding to Compliance Issues
Whistle-blowing System (Speak Up System)

76
77
77

Grievance Mechanism: Membership in JaCER
Acknowledging Grievances and Providing Explanations
for Relocations
Responding to Compliance Issues
Whistle-blowing System (Speak Up System)77

148-149
153-154

6-7
8-9
10-11

147
148-149

148-149

2-25

Processes to remediate negative
impacts

3. Governance
2-9

2-10

2-11

200

Governance structure andcomposition

Nomination and selection of thehighest governance body

Chair of the highest governance body

SUMITOMO METAL MINING CO., LTD.

Social Data: Number of Officers and Employees (by country andregion)Social Data: Number of Officers and Employees (by age groupand employee category)
Corporate Governance Framework
Decision-Making and Supervisory System
Outside Directors and Outside Audit & Supervisory
Board Members

147148-149
165
166-167170
2-26

Procedures in the Nomination of Director Candidates,
Appointment or Dismissal of Senior Management, andNomination of Audit & Supervisory Board Member
Candidates

168

Decision-Making and Supervisory System

166-167

Sustainability Report 2023

Reasons

Explanation

4. Strategy, policies and practices
2-22

2. Activities and workers
2-6

Items
omittedMechanisms for seeking advice andraising concerns

78-79

78-79
116
118
119
120
122
123

114-115
118
118
119
122
123
177
178

114-115
177
178

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

201

References References

GRI Content Index

OmittedGRI Standard/
Other Sources

Disclosure

Item

Page
number(s)2-27Compliance with laws and regulations

Compliance Status

177

2-28

Membership associations

Main Organizations in Which SMM Has Membership
Participation in and Declarations of Support forInternational Organizations

129

Items
omittedReasons

OmittedExplanation

201-2

130

Approach to stakeholder engagement

Communication with Local Communities and NGOs
SMM’s Vision for Stakeholder Engagement
Stakeholder Engagement

114
124
127

2-30

Collective bargaining agreements

Labor-Management Relations
Social Data: Labor-Management Relations

107-108
158

Disclosures on material topics
OmittedItem

Pagenumber(s)GRI 3: Material Topics 2021
3-1

Process to determine material topics

Sustainability Issues in the Value Chain
Vision for 2030 – Formulation Approach

6-7
26-27

3-2

List of material topics

Material Issues and Their Background
Vision for 2030, Material Issues, KPIs (Indicators andGoals)

25
28-29

Financial implications and other risks
and opportunities due to climatechangeItems
omittedReasons

302-1

Energy consumption within theorganization

302-2

Energy consumption outside of theorganization

302-3

Energy intensity

Vision for 2030, Material Issues, KPIs (Indicators andGoals)
Approach and Policy / Promotion Structure / MediumTerm Targets and Progress

28

301-2

Materials used by weight or volume

Recycled input materials used

Environmental Impact of Business Activities (material
flow)
Environmental Data: Raw Material and Energy Inputs in Business Activities
Percentage of Recycled Input Raw Materials Used
Environmental Impact of Business Activities (material
flow)
Environmental Data: Percentage of Recycled Input Raw Materials Used

71
a.-c.

Information
Not disclosed because
not available/ the information outsufficientside of the organization is not available.

47
70

302-5

Reductions in energy requirements ofproducts and services

a.-c.

Information
Not disclosed because
not available/ the information for thesufficient
reduction in energy
requirements is not
sufficient.

Explanation

305: Emissions 2016

305-2

Direct (Scope 1) GHG emissions

Energy indirect (Scope 2) GHG
emissions

GHG Emissions (Scope 1 and 2)
Environmental Impact of Business Activities (material
flow)
Environmental Data: Greenhouse Gas (GHG) Emissions

46

GHG Emissions (Scope 1 and 2)
Environmental Impact of Business Activities (material
flow)
Environmental Data: Greenhouse Gas (GHG) Emissions

46

59
70

59
70

305-3

Other indirect (Scope 3) GHG
emissions

GHG Emissions in the Value Chain (Scope 3)

50

305-4

GHG emissions intensity

Energy and GHG Emissions Intensity Indices
Environmental Data: Energy and GHG Emissions Intensity Indices

47

305-5

Reduction of GHG emissions

GHG Emissions (Scope 1 and 2)
Energy and GHG Emissions Intensity Indices

46
47

58

39
58

Energy and GHG Emissions Intensity Indices
Environmental Data: Energy and GHG Emissions Intensity Indices58

Information
Not disclosed because
not available/ the information for thesufficient
reduction of energy
consumption is not
sufficient.

32-33

71

Environmental Impact of Business Activities (material
flow)
Environmental Data: Raw Material and Energy Inputs in Business Activitiesa.-d.

301: Materials 2016
301-1

44-45

Explanation

Reduction of energy consumption

GRI 3: Material Topics 2021
Management of material topics

Climate Change Scenario Analysis

Reasons

302-4

305-1

Effective Use of Non-Ferrous Metal Resources
3-3

Item

Items
omitted302: Energy 2016

2-29

Disclosure

DisclosurePagenumber(s)201: Economic Performance 2016

5. Stakeholder engagement

GRI Standard/
Other Sources

GRI Standard/
Other Sources

70

70

Significant Environmental Accidents / Biodiversity
Climate Change

GRI 3: Material Topics 2021

GRI 3: Material Topics 2021
3-3

202

Management of material topics

SUMITOMO METAL MINING CO., LTD.

3-3
Vision for 2030, Material Issues, KPIs (Indicators andGoals)
Environmental Management: Sumitomo Metal Mining Group Environmental
Targets for 2023 / Promotion Structure
Approach and Policy / Management Structure andApproach regarding the Material Issue of Climate
Change (based on the TCFD recommendations) /Medium-Term Targets and Progress

Sustainability Report 2023

Management of material topics

28
40-41

Vision for 2030, Material Issues, KPIs (Indicators andGoals)
Environmental Management: Sumitomo Metal Mining Group Environmental
Targets for 2023 / Promotion Structure
Approach and Policy / Promotion Structure / MediumTerm Targets and Progress

28
40-41
52-53

303: Water and Effluents 2018
42-43

303-1

Interactions with water as a sharedresource

Water Risk Management

56

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

203

References References

GRI Content Index

OmittedGRI Standard/
Other Sources

Items
omittedOmittedGRI Standard/
Other Sources

Disclosure

Item

Page
number(s)Disclosure

Item

Page
number(s)303-2Management of water
discharge-related impacts

Discharge into Water

60

306-3

Waste generated

303-3

Water withdrawal

Environmental Impact of Business Activities (material
flow)
Discharge into Water
Environmental Data: Water Resource Input, Water Discharge, and Water
Consumption in Business Activities

58
60

Environmental Impact of Business Activities (material
flow)
Waste by Type and Treatment Method (FY2022)
Emissions of Waste Plastic (FY2022)

59
62
63

306-4

Waste diverted from disposal

Waste by Type and Treatment Method (FY2022)
Emissions of Waste Plastic (FY2022)

62
63

71

306-5

Waste directed to disposal

Trends in Final Disposal Amount of Industrial andMining Waste in Japan
Waste by Type and Treatment Method (FY2022)
Emissions of Waste Plastic (FY2022)
Environmental Data: Final Disposal Amount of Industrial and Mining Waste
in Japan

303-4

303-5

Water discharge

Environmental Impact of Business Activities (material
flow)
Discharge into Water
Environmental Data: Water Resource Input, Water Discharge, and Water
Consumption in Business Activities
Environmental Data: Release and Transfer of Chemical Substances in
Business Activities

Water consumption

Environmental Impact of Business Activities (material
flow)
Environmental Data: Water Resource Input, Water Discharge, and Water
Consumption in Business Activities

Reasons

Explanation

59
60
71

71

Operational sites owned, leased,managed in, or adjacent to, protectedareas and areas of high biodiversity
value outside protected areas

304-2

Significant impacts of activities,
products and services on biodiversitya.-b.

Habitats protected or restored

a.-d.

304-4

a.

Environmental Data: Rehabilitated Area73

G4-MM2

THE NUMBER AND PERCENTAGE OFTOTAL SITES IDENTIFIED AS
REQUIRING BIODIVERSITYMANAGEMENT PLANS ACCORDING TO
STATED CRITERIA, AND THE NUMBER(PERCENTAGE) OF THOSE SITES WITH
PLANS IN PLACE

Environmental Data: Business Activities in Areas of High Biodiversity Value73

Information
Not disclosed because
not available/ the information forsufficient
impacts is notavailable.

G4-MM3TOTAL AMOUNTS OF OVERBURDEN,
ROCK, TAILINGS, AND SLUDGES AND
THEIR ASSOCIATED RISKSManaging Tailings Dams
Environmental Impact of Business Activities (material
flow)

Information
Not disclosed because
not available/ the information forsufficient
habitats is not
sufficient.
Information
Not disclosed because
not available/ the information forsufficient
species with habitats
is not sufficient.

Emissions of ozone-depleting
substances (ODS)

Release Control for Chemical Substances

305-7

Nitrogen oxides (NOx), sulfur oxides(SOx), and other significant air
emissions

Environmental Impact of Business Activities (material
flow)
Emissions into the Atmosphere
Environmental Data: Release and Transfer of Chemical Substances in
Business Activities

306-2

204

Waste generation and significant
waste-related impacts

Management of significant
waste-related impacts

SUMITOMO METAL MINING CO., LTD.

59

GRI 3: Material Topics 2021
3-3Management of material topics

61

Vision for 2030, Material Issues, KPIs (Indicators andGoals)
28
Business and Human Rights: Approach and Policy / Promotion Structure / Human
Rights Due Diligence Initiatives
76-77
Approach and Policy / Policy and Targets / Occupational
Health and Safety Policies, Targets and Plans / Promotion
Structure / Medium-Term Targets and Progress
80-83

403: Occupational Health and Safety 2018

59
60

403-1

Occupational health and safety
management system

Promotion Structure
81
Social Data: Occupational Health and Safety Management System 144

72

403-2

Hazard identification, risk assessment,
and incident investigation

Managing Tailings Dams
Managing Decommissioned and Closed Mines
Rehabilitating Tailings Dams
Environmental Impact of Business Activities (material
flow)

56
56-57
57

Promotion Structure
Occupational Health and Safety Risk Assessments
Social Data: Identification of Hazard Sources, Risk Assessment,
and Accident Investigation (2022)403-3

Occupational health services

Social Data: Services, Education and Training Related to
Occupational Health and Safety (2022)

59

403-4

Managing Tailings Dams
Managing Decommissioned and Closed Mines
Rehabilitating Tailings Dams
Environmental Impact of Business Activities (material
flow)

56
56-57
57

306: Waste 2020
306-1

56

Employees’ Occupational Health and Safety

305: Emissions 2016
305-6

72

AMOUNT OF LAND (OWNED OR
LEASED, AND MANAGED FOR
PRODUCTION ACTIVITIES OR
EXTRACTIVE USE) DISTURBED OR
REHABILITATED73

IUCN Red List species and national
conservation list species with habitats
in areas affected by operations

Sustainability Report 2023

Explanation

62
62
63

G4-MM1

58

304-1

304-3

Reasons

G4-Mining and Metals

72

304: Biodiversity 2016
Environmental Data: Business Activities in Areas of High Biodiversity Value

Items
omittedWorker participation, consultation,and communication on occupational
health and safety

81
83
145

146

Occupational Health and Safety Committees
Labor-Management Relations: Labor-Management Agreements to Improve theLevel of Occupational Health and Safety

82
108

59

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

205

References References

GRI Content Index

OmittedGRI Standard/
Other Sources

403-5

403-7

Page
number(s)Disclosure

Item

Worker training on occupational
health and safety

Individual Initiatives for Occupational Health and Safety: Education
84
Priority Initiatives for FY2022
84
Social Data: Services, Education and Training Related to
Occupational Health and Safety (2022)
146

Prevention and mitigation ofoccupational health and safety
impacts directly linked by business
relationships

Occupational Health and Safety Committees
Social Data: Identification of Hazard Sources, Risk Assessment,
and Accident Investigation (2022)

403-8

Workers covered by an occupational
health and safety management
systemSocial Data: Occupational Health and Safety Management System 144

403-9

Work-related injuries

Social Data: Work-Related Incidents

142403-10Work-related ill healthSocial Data: Work-Related Ill Health

143

Items
omittedReasons

OmittedExplanation

GRI Standard/
Other Sources403-6

Vision for 2030, Material Issues, KPIs (Indicators andGoals)
Business and Human Rights: Approach and Policy / Promotion Structure / Human
Rights Due Diligence Initiatives
Approach and Policy / Promotion Structure / MediumTerm Targets and Progress
Human Resources Development
Diversity & Inclusion: Approach
Maintaining and Improving Employees’ Health

Promotion of worker health

145

404-2
29

Maintaining and Improving Employees’ Health
Maintaining and Improving Employees’ Health: Sumitomo Metal Mining Group Health andProductivity Promotion Structure
Maintaining and Improving Employees’ Health: Health and Productivity Management Plan
Maintaining and Improving Employees’ Health: Addressing Mental Health Care
Maintaining and Improving Employees’ Health: Illness Prevention and Health Promotion Initiatives
Social Data: Addressing Mental Health Care
Social Data: Illness Prevention and Health Promotion Initiatives

Average hours of training per year per
employeeSocial Data: Time Spent on and Investment in Employee
Education

Programs for upgrading employee
skills and transition assistanceprograms

Human Resources Development
Utilization of Human Resources: Creation of Workplaces Where Diverse Human
Resources Can Play Active Roles: Diverse Working
Styles for Older Employees
Diversity & Inclusion: Initiatives toward Gender Balance (women’s active
engagement)

76-77
86-90
90-94
99
102

Ratios of standard entry level wage by
gender compared to local minimum
wage

Diversity & Inclusion: Initiatives toward Gender Balance (women’s active
engagement)
Social Data: Standard Entry-level Salary to Regional Minimum
Wage

404-3

102
103
103-104
105-106
158
158

153-154
90-94

98
99-100Percentage of employees receiving
regular performance and careerdevelopment reviews

Information
Not disclosed because
not available/ the information forsufficient
percentage of employees receiving reviews
is not sufficient.

405: Diversity and Equal Opportunity 201699-100405-1

Diversity of governance bodies andemployees

157

401: Employment 2016
401-1

New employee hires and employee
turnoverSocial Data: New Hires and Departures (by hiring type and reason
for departure)
150
Social Data: New Hires and Departures (by region)
150-152

401-2

Benefits provided to full-time
employees that are not provided totemporary or part-time employees

Utilization of Human Resources: Creation of Workplaces Where Diverse Human
Resources Can Play Active Roles
Long-Term Incentives and Rewards System for
Employees

401-3

Parental leave

Utilization of Human Resources: Creation of Workplaces Where Diverse Human
Resources Can Play Active Roles: Development ofSupport Systems for Balancing Work and ChildRearing and Nursing Care
Social Data: Creating Workplaces Where Diverse Human
Resources Play Vibrant and Active Roles

96
106-107
405-2

155

206

SUMITOMO METAL MINING CO., LTD.

Labor-Management Relations

Sustainability Report 2023

Diversity & Inclusion: Approach
Diversity & Inclusion:
Initiatives toward Gender Balance (women’s active 
engagement)
Diversity & Inclusion: Promotion of Employment for People with Disabilities
Diversity & Inclusion: Increase in Foreign Employees
Diversity & Inclusion: LGBT-related Initiatives
Social Data: Number of Officers and Employees (by country andregion)Social Data: Number of Officers and Employees (by age groupand employee category)Social Data: Promoting Employment of People with Disabilities

99
99-100
101
101
101
147
148-149
157

Diversity & Inclusion:
Initiatives toward Gender Balance (women’s active 
engagement)
Social Data: Gender Balance (women’s active engagement)

99-100Whistle-blowing System (Speak Up System)

178

156

406: Non-discrimination 2016
406-1

Minimum notice periods regarding
operational changes

Ratio of basic salary and remunerationof women to men

96-97

402: Labor/Management Relations 2016
402-1

Explanation

102

202: Market Presence 2016
202-1

Reasons

404: Training and Education 2016
404-1

GRI 3: Material Topics 2021
Management of material topics

Item

Items
omitted403: Occupational Health and Safety 201882

Diverse Human Resources / Development and Participation of Human Resources
3-3DisclosurePagenumber(s)Incidents of discrimination andcorrective actions taken

107-108

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

207

References References

GRI Content Index

OmittedGRI Standard/
Other Sources

Disclosure

Item

Page
number(s)ItemsomittedReasons

OmittedExplanation

Operations and suppliers in which theright to freedom of association andcollective bargaining may be at risk

Labor-Management Relations

Disclosure107-108

3-3

Management of material topics

G4-Mining and Metals
G4-MM4

NUMBER OF STRIKES AND LOCK-OUTS
EXCEEDING ONE WEEK’S DURATION,
BY COUNTRY

Labor-Management Relations

107-108

Management of material topics

Vision for 2030, Material Issues, KPIs (Indicators andGoals)
Business and Human Rights: Approach and Policy / Promotion Structure / Human
Rights Due Diligence Initiatives
Approach and Policy / Promotion Structure / MediumTerm Targets and Progress

411-1
29

Proportion of senior management
hired from the local community

Social Data: Percentage of Locally-Hired Senior Managers

203-2

Infrastructure investments andservices supported

Significant indirect economic impacts

Cost of Social Contribution Activities
Social Data: Investment in Infrastructure and Support Services(cost of social contribution activities)
Acknowledging Grievances and Providing Explanations
for Relocations

76-77

Proportion of spending on local
suppliers

Social Data: Percentage of procurement from local suppliers andpercentage of employees hired locally

Incidents of violations involving rights
of indigenous peoples

Operations with local community
engagement, impact assessments,
and development programs

413-2

Operations with significant actual andpotential negative impacts on local
communities

G4-MM9G4-MM10208

114

Initiatives through Dialogue at Workplaces118

G4-MM7

THE EXTENT TO WHICH GRIEVANCEMECHANISMS WERE USED TO RESOLVEDISPUTES RELATING TO LAND USE,CUSTOMARY RIGHTS OF LOCALCOMMUNITIES AND INDIGENOUS
PEOPLES, AND THE OUTCOMES

Initiatives through Dialogue at Workplaces

118

114

Human Rights in the Supply Chain
GRI 3: Material Topics 2021
3-3Management of material topics

159

114

Acknowledging Grievances and Providing Explanations
for Relocations

Information
Not disclosed because
not available/ the information forsufficient
operations is not
sufficient.

SITES WHERE RESETTLEMENTS TOOKPLACE, THE NUMBER OF HOUSEHOLDSRESETTLED IN EACH, AND HOW THEIRLIVELIHOODS WERE AFFECTED IN THE
PROCESSAcknowledging Grievances and Providing Explanations
for Relocations

114

NUMBER AND PERCENTAGE OFOPERATIONS WITH CLOSURE PLANS

Closure Plans for Mines, Smelters and Refineries

115

114

Vision for 2030, Material Issues, KPIs (Indicators andGoals)
Business and Human Rights: Approach and Policy / Promotion Structure / Human
Rights Due Diligence Initiatives
Approach and Policy / Promotion Structure / MediumTerm Targets and Progress

29
76-77
120-121308: Supplier Environmental Assessment 2016308-1

New suppliers that were screenedusing environmental criteria

Responsible Mineral Sourcing

122

308-2

Negative environmental impacts inthe supply chain and actions taken

Initiatives Related to Sustainable Procurement

123

Promotion Structure120406: Non-discrimination 2016
406-1

Sustainability Report 2023

118

NUMBER AND DESCRIPTION OFSIGNIFICANT DISPUTES RELATING TO
LAND USE, CUSTOMARY RIGHTS OF
LOCAL COMMUNITIES AND
INDIGENOUS PEOPLES

159

THE EXTENT TO WHICH GRIEVANCEMECHANISMS WERE USED TO RESOLVEDISPUTES RELATING TO LAND USE,CUSTOMARY RIGHTS OF LOCALCOMMUNITIES AND INDIGENOUS
PEOPLES, AND THE OUTCOMESSUMITOMO METAL MINING CO., LTD.

Initiatives through Dialogue at Workplaces

G4-MM6G4-Mining and Metals
G4-MM7116-117

118

160

a.

Acknowledging Grievances and Providing Explanations
for Relocations

76-77

Initiatives through Dialogue at Workplaces413: Local Communities 2016
413-1

Explanation

29

TOTAL NUMBER OF OPERATIONSTAKING PLACE IN OR ADJACENT TO
INDIGENOUS PEOPLES’ TERRITORIES,AND NUMBER AND PERCENTAGE OFOPERATIONS OR SITES WHERE THERE
ARE FORMAL AGREEMENTS WITH
INDIGENOUS PEOPLES’ COMMUNITIES

110-113204: Procurement Practices 2016
204-1

Reasons

G4-Mining and Metals

203: Indirect Economic Impacts 2016
203-1

Vision for 2030, Material Issues, KPIs (Indicators andGoals)
Business and Human Rights: Approach and Policy / Promotion Structure / Human
Rights Due Diligence Initiatives
Approach and Policy / Promotion Structure / MediumTerm Targets and Progress

G4-MM5202: Market Presence 2016
202-2

Item

Items
omitted411: Rights of Indigenous Peoples 2016

Co-Existence and Mutual Prosperity with Local Communities
GRI 3: Material Topics 2021
3-3

Page
number(s)Rights of Indigenous Peoples
GRI 3: Material Topics 2021

407: Freedom of Association and Collective Bargaining 2016
407-1

GRI Standard/
Other Sources

Incidents of discrimination andcorrective actions taken

407: Freedom of Association and Collective Bargaining 2016
407-1

Operations and suppliers in which theright to freedom of association andcollective bargaining may be at risk

Promotion Structure120

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

209

References References

GRI Content Index

OmittedGRI Standard/
Other Sources

Disclosure

Item

Page
number(s)ItemsomittedReasons

OmittedExplanation

Operations and suppliers at significant
risk for incidents of child labor

Promotion Structure120409: Forced or Compulsory Labor 2016409-1

Operations and suppliers at significant
risk for incidents of forced orcompulsory labor

Promotion Structure

414-1

New suppliers that were screenedusing social criteria

Responsible Mineral Sourcing

122

414-2

Negative social impacts in the supply
chain and actions taken

Initiatives Related to Sustainable Procurement

123

Items
omittedReasons

Explanation

NUMBER (AND PERCENTAGE) OF
COMPANY OPERATING SITES WHERE
ARTISANAL AND SMALL-SCALEMINING (ASM) TAKES PLACE ON, OR
ADJACENT TO, THE SITE; THE
ASSOCIATED RISKS AND THE ACTIONSTAKEN TO MANAGE AND MITIGATETHESE RISKS

Responsible Mineral Sourcing

122

Tax Governance: Approach and Policy
Initiatives for Tax-Related Compliance

180
181

207-2

Tax governance, control, and risk
management

Compliance Status
Decision-Making Concerning Taxes, Oversight by the
Board of Directors, and the Role of Audit & Supervisory
Board Members
Initiatives for Tax-Related Compliance

177
181
181

207-3

Stakeholder engagement andmanagement of concerns related totax

Tax-Related Information Collection and Initiatives
Involving Government, etc.

181

207-4

Country-by-country reporting

Social Data: Economic Performance

161

416-1

Assessment of the health and safety
impacts of product and service
categories

Disclosure of Information on Products and Services

189

416-2

Incidents of non-complianceconcerning the health and safety
impacts of products and services

Compliance Status

177

417: Marketing and Labeling 2016Engagement with Stakeholders
GRI 3: Material Topics 2021
Management of material topics

Approach to tax

416: Customer Health and Safety 2016

G4-Mining and Metals

3-3

Item

207-1

120

414: Supplier Social Assessment 2016

G4-MM8DisclosurePagenumber(s)207: Tax 2019

408: Child Labor 2016
408-1

GRI Standard/
Other Sources

Vision for 2030, Material Issues, KPIs (Indicators andGoals)
Approach and Policy / Promotion Structure / MediumTerm Targets and Progress29
124-126417-1

Requirements for product and service
information and labeling

Information on SMM Products Requiring Disclosure by
Labeling and Applicable Products/Services

190

417-2

Incidents of non-complianceconcerning product and service
information and labelingCompliance Status

177

417-3

Incidents of non-complianceconcerning marketing
communications

Compliance Status

177

Disclosures Other than Material Topics
OmittedGRI Standard/
Other Sources

Disclosure

Item

Page
number(s)ItemsomittedReasons

Explanation

201: Economic Performance 2016
201-1

Direct economic value generated anddistributed

Social Data: Economic Performance

161

201-3

Defined benefit plan obligations andother retirement plans

Social Data: Economic Performance

161

201-4

Financial assistance received fromgovernment

Social Data: Economic Performance161

205: Anti-corruption 2016
205-1

Operations assessed for risks related
to corruption

Initiatives on Preventing Corruption

177

205-2

Communication and training aboutanti-corruption policies andprocedures

Participants of Compliance Education (FY2022)

178

205-3

Confirmed incidents of corruption andactions taken

Compliance Status

177

Compliance Status

177

206: Anti-competitive Behavior 2016
206-1

210

Legal actions for anti-competitive
behavior, anti-trust, and monopoly
practices

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

211