SUSTAINABILITYREPORT 2023

We contribute to the development of asustainable economy and society
through innovation in the areas ofresources and materials

JX Metals Group Code of Conduct
1. Our social mission
Based on continuous technological development and full awareness of our responsibilities in designing
products, we will develop and produce a variety of products efficiently while minimizing waste. At thesame time, we will promote recycling and reduce the impact of our operations on the environment. By
doing so, we hope to obtain the satisfaction and trust of our customers and of society as a whole.

2. Compliance with laws and regulations and engagement in fair trade
We will comply with domestic and/or overseas laws and regulations, and will engage in fair, transparent
and free competition and trade based on the fulfillment of our social responsibilities.

3. Disclosure of corporate information and protection of personal information
We will communicate not only with our shareholders, but also with the public at large, and will disclose
corporate information in an active and equitable manner while focusing on the protection of personal
information.

4. Creation of an optimum health, safety and working environment
We will place top priority on health, safety, and disaster prevention and will ensure a comfortable working
environment that respects employees’ personality, human rights, and individuality.

5. Environmental conservation
Based on the awareness that tackling environmental issues is an essential requirement for corporate
existence, we will engage in activities aimed at conserving the global environment, including biodiversity,
in a voluntary, active and continuous manner.

6. Enhancement and strengthening of risk management
We will establish a risk management system based on scientific data to enhance and strengthen risk
management.

7. Harmonious relationship with society
We will commit ourselves to social contribution activities and work as a good corporate citizen to achievea harmonious relationship with the rest of the society of which we are part.

8. International business operations
In international business operations, we aim to contribute to sustainable development by protecting thefundamental human rights of people in countries and areas where we operate, and by respecting theircultures and customs.

9. Elimination of antisocial activities
We stand firm against all antisocial forces and groups that threaten social order and safety.

10. Management responsibilities
Management executives will take the lead in implementing this code of conduct and ensure it isthoroughly implemented across the Group. In the event of any non-compliance with the code of conduct,
the management executives will investigate the causes, work to prevent reoccurrence, disclose
information to the public promptly and accurately, and be held accountable for the event.

1

JX Metals Corporation

Sustainability Report 2023

2

Contents/Editorial Policy

Contents

Sustainability Report 2023

Section 1 Vision & Values
History of Value Creation

5

Message From the President

7Long-Term Vision and Medium-Term Management Plan

13

Global Network

17

Responding to International Norms and Initiatives

19

Outside Directors Roundtable Discussion

21

Section 2 Value Creation Strategy
Value Creation Model

25

Special Feature 1

Contributing to Sustainable Societies Through Advanced Materials 27Special Feature 2

Sustainable Copper Vision

33

Special Feature 3

Human Capital Management

37

The JX Metals Group for the Future Society

43

Strategy by Segment

45

Section 3 Materiality and ESG Management
Materialities (Priority Issues) and KPIs (Key Performance Indicators)

51

Editorial Policy
The JX Metals Group engages in ESG
management in all business endeavors toward
the sustainable development of society. We issue
one edition of the Sustainability Report each year
to disclose appropriate corporate information toa broad range of stakeholders, including
customers, shareholders and investors,
employees, suppliers, and local and international
communities. As an important communication
tool, this report is designed to enhance
stakeholder understanding of our ESG activities.
Sustainability Report 2023 presents the JX
Metals Group efforts to transform our businessportfolio to achieve our Long-Term Vision,
highlighting Group initiatives with a focus onsustainable businesses.
Referenced Guidelines● Global Reporting Initiative (GRI) Sustainability
Reporting Standards● Guidance for Collaborative Value Creation 2.0,
Ministry of Economy, Trade and Industry● Environmental Reporting Guidelines 2018,
Ministry of the Environment● Task Force on Climate-related Financial
Disclosures (TCFD)
The indicators in this report that are assured
by a third-party organization are marked with acheck.

Definitions of Terminology
The Company: Refers to JX Metals Corporation.
The JX Metals Group (the “Group”): JX Metals
Corporation and subsidiaries. However, thecompany subject to reporting may differ according to the section of the report (see Scope of This
Report for details).
ENEOS Group: A corporate group formed by
ENEOS Holdings, Inc., the parent company of JX
Metals Corporation. Along with the Company, thecore operating companies of the JX Metals
Group are ENEOS Corporation and JX Nippon
Oil & Gas Exploration Corporation.

Materiality 1 Contributing to Environmental Conservation

JX Metals Trading Co., Ltd. ◎●＊★

Materiality 2 Provide Advanced Materials That Support Lives and Lifestyles

Toho Titanium Co., Ltd. ◎●＊★
JX Nippon Mining Ecomanagement, Inc. ◎●★
Yoshino Mines Co., Ltd. ◎●★

SocialOya Mines Co., Ltd. ◎●★

66

Hokuriku Mines Co., Ltd. ◎●★
Shin-Takatama Mining Co., Ltd. ◎★

MFN Investment LLC ◎★
Nippon Caserones Resources Co., Ltd. ◎★
Pan Pacific Copper Co., Ltd. ◎●★
Keihin Kaseihin Center Co., Ltd. ◎●★
PPC Logistics Co., Ltd. ◎★
JX Metals Smelting Co., Ltd. ◎●＊★
JX Metals Smelting Logitech Co., Ltd. ◎●★

77

Materiality 4 Respect Human Rights

83

Shakanai Mines Co., Ltd. ◎★

Japan Korea Joint Smelting Co., Ltd. ◎★

Materiality 5 Coexistence and Co-Prosperity With Local Communities

90

Hanawa Mines Co., Ltd. ◎●★

JX Metals Environmental Services Co., Ltd.◎●＊★

Hitachi Mines Co., Ltd. ◎●★

Hokushin Mining Co., Ltd. ◎●★
Namariyama Mining Co., Ltd. ◎●★
Kamikita Mines Co., Ltd. ◎●★
Toyoha Mine Co., Ltd. ◎●★

94

Shimoda Hot Springs Co., Ltd. ◎●★
Kamine Clean Service Co., Ltd. ◎★
Furuuchi Chemical Corporation ◎●＊★

ESG Data Book
Environment

105

Social110

Independent Assurance Report

114

GRI Standards Content Index

115

JX Metals Corporation

Japan Copper Casting Co., Ltd. ◎●＊★

JX Metals Tomakomai Chemical Co., Ltd. ◎●＊★
JX Metals Mikkaichi Recycle Co., Ltd. ◎●＊★
JX Metals Takasho Co., Ltd. ◎●＊★
Ichinoseki Foil Manufacturing Co., Ltd. ◎●＊★
JX Nippon Coil Center Co., Ltd. ◎●＊★
JX Metals Precision Technology Co., Ltd. ◎●＊★
Kitaibaraki Precision Co., Ltd. ◎●＊★

JX Metals Research Institute for Technology & Strategy

JX Nippon Foundry Co., Ltd. ◎●★

Co., Ltd. ◎★

TANIOBIS Japan Co., Ltd. ◎●＊★

Ibaraki Nikko Kensetsu Co., Ltd. ◎★
JX Metals Circular Solutions Co., Ltd. ◎●＊★
JX Metals Plant Saganoseki Co., Ltd. ◎★

Toho Material Co., Ltd. ◎●★
Advanced Forging Technology, Inc. ◎●★
Tokyo Denkai Co., Ltd. ◎●＊★

Kasuga Mines Co., Ltd. ◎●＊★

Other
One domestic and one overseas company ◎＊*Company names are current as of fiscal 2022.

3

Co., Ltd. ◎★

Materiality 3 Create Attractive Workplaces

Materiality 6 Strengthen Governance

Environment

Energy and GHGs: Businesslocations of quantitative importanceto the JX Metals Group (including
business locations with production
activities and closed mines)(Companies listed below marked
with ●)
Other environmental data:
Production sites of corporations
with 21 or more employees(Companies listed below marked
with ＊)

Employees,
Society, Corporate
Governance

The Company and 83 companies inwhich the Company has 50% or
greater voting rights directly or
indirectly.
*
Main companies covered by thisreport are those marked with ★
below.

Overseas
JX Metals Resources Exploration & Development

Kaneuchi Mining Co., Ltd. ◎★

Governance

Companies included in the
consolidated financial statements of
JX Metals.
Business Overview* The Company and its consolidated
subsidiaries listed below have the◎ symbol after their names.

Reporting Period
April 2022 - March 2023
In principle, this report covers our businessactivities during fiscal 2022. To ensure comprehensive disclosure, however, it also includes
certain information regarding important events
that occurred prior to or after this period.
Scope of This Report
This report covers JX Metals Corporation as wellas domestic and overseas Group companies.
The main indicators reported in each reportingarea are as shown below. Where the scope ofreporting for each indicator differs from the scope

Scope of This Report

Main Companies Covered by This Report
JX Metals Corporation ◎●＊★

53

Corresponding
Sections

Publication Date
Febrary 2024

Domestic

Environmentshown in the table below, this scope shall be noted
separately.

Hong Kong Nikko Shoji Co., Ltd. ◎★
Shenzhen Nikko Shoji Co., Ltd. ◎★
Materials Service Complex (Thailand) Co., Ltd. ◎●＊★
Materials Service Complex Coil Center (Thailand) Co., Ltd. ◎★
Nikko Metals Taiwan Co., Ltd. ◎●＊★
JX Metals Shanghai Co., Ltd. ◎★
MLCC Finance Netherlands B.V. ◎★
Nippon Mining of Netherlands B.V. ◎★
Nippon LP Resources B.V. ◎★
Nippon LP Resources UK Limited ◎★
JX Nippon Mining & Metals Chile SpA ◎★
Compania Minera Quechua S.A. ◎★
JX Nippon Mining & Metals Exploration Peru S.A.C. ◎★
JX Nippon Mining & Metals Exploration Chile Limitada ◎★
Nippon Caserones Resources Canada Enterprises Corp. ◎★
SCM Minera Lumina Copper Chile ◎●＊★
Caserones Finance Netherlands B.V. ◎★
JX Nippon Mining & Metals Philippines, Inc. ◎●＊★
Nippon Mining & Metals (Suzhou) Co., Ltd. ◎●＊★
Nikko Fuji Precision (Wuxi) Co., Ltd. ◎●＊★
Materials Service Complex Malaysia Sdn. Bhd. ◎●＊★
Nikko Metals Shanghai Co., Ltd. ◎★
JX Nippon Mining & Metals Dongguan Co., Ltd. ◎●＊★
JX Nippon Mining & Metals USA, Inc. ◎●＊★
JX Nippon Mining & Metals Europe GmbH ◎★
JX Metals Korea Co., Ltd. ◎●＊★
JX Nippon Mining & Metals Singapore Pte. Ltd. ◎★
TANIOBIS GmbH ◎●＊★
TANIOBIS Co., Ltd. ◎●＊★
TANIOBIS Smelting GmbH & Co. KG ◎●＊★
TANIOBIS USA LLC ◎★
JX Metals Circular Solutions Europe GmbH ◎★
eCycle Solutions Inc. ◎●＊★
Green-Go Recycling Inc. ◎★
Refreshtek Information Technology Services International Inc. ◎★

Sustainability Report 2023

4

June 2020

Relocated Headquarters to
the Toranomon area

Section 1

Activity-based working (ABW) was
introduced as a new work style that
increases productivity by allowing
employees to work independently but
also encourages open and frankcommunication that removes
organizational boundaries. In addition,
SQUARE LAB has been established topromote collaboration with our various
partners in the creation of nextgeneration office space.

Vision & Values

History of Value Creation
2010

1914 Built the Hitachi Giant Stack

1978 Built new recycling furnace

The rapid growth of the Hitachi Mine’s business led to severe
smoke pollution in its surrounding area. To deal with thepollution, the Company built what was then the world’s tallest
stack, at 155.7 meters. It began operation in March of thefollowing year.

A new recycling furnace making use of smelting
techniques was built at the Hitachi Smelter & Refinery,marking the launch of the Company’s Recycling andEnvironmental Services Business. Using this furnace, we
pursued the business of reclaiming valuable metals fromplating sludge and other industrial waste.

The JX Group (JX Holdings)
was born as one of the world’s
leading integrated energy,
resources, and materials businessgroups, conducting business ineach of the areas of petroleum
refining and sales, oil fielddevelopment, andmetals

1992

EstablishedNipponMiningEstablished

1905

Opened the Hitachi Mine
Company founder Kuhara
Fusanosuke opened the Hitachi
Mine in Ibaraki Prefecture, launching
the resources development andsmelting and refining businesses.
From the very beginning of its
operation, Mr. Kuhara actively
promoted mechanization andmodernization to improve
productivity. The Hitachi Mine
pioneered the custom smelter, using
its full-fledged facilities to process
not only ores from its home mine,
but also those purchased from otherfirms.

Founder Kuhara
Fusanosuke

5

JX Metals Corporation

1916

Launched operations at
the Saganoseki Smelter& Refinery
Saganoseki Smelter & Refinery wasbuilt in Oita Prefecture to further
expand the mining, smelting, andrefining segments fundamental to
the Company’s diversified business.
It was one of the largest such plants
in Japan. Even to this day, it remains
a key location within the JX Metals
Group, as a leading-edge smelter
boasting worldclass technologicalcapabilities and production capacity.

The Saganoseki Smelter & Refinery in 1916

*Consolidated

No. of Employees(as of March 31, 2023)*Consolidated

2017

2016

JXTG Holdings wasestablished with the merger
of JX Holdings and Tonen
General Sekiyu K.K.

2023

Preparations forstock listing begin

Changed Japanesename of JX Nippon
Mining & Metals

Our goal is to increase
corporate value by
establishing a management
structure that enables expert
and rapid decision making
as well as creating an
optimal capital structure thatsuits the characteristics ofour business.

Established Nippon
Mining Holdings, Inc.
Merger of Japan Energy
and Nikko Metals

Spinoff of Nippon
Mining’s metals andmetal fabrication
businesses

1929

1905

1,6378.0
bil. yen(FYE March 2023)

JXTG Holdings (nowENEOS Holdings)
was Born

2002

Nikko Metals becomes
independent company

Net Sales

10,759Birth of the JX GroupIn recognition of our mission as a stable provider of nonferrous metal resources and materials to society, the Group has, since ourfounding in 1905, strived to generate new value even while answering the various changes in the business environment. We aredetermined to continue forward, taking on the challenge of contributing to the development of sustainable economies and societies
through innovation in resources and materials.

2023

1964

1985

The launch of operations at theKurami Works in Kanagawa
Prefecture marked the Company’searnest entry into the metal
fabrication business. It featured thelatest rolling mills, producing
phosphor bronze and other copper
alloy products. By answering theneeds of complex markets fordiverse, small-lot, and made-toorder products, as well as advanced
technical demands on products, theCompany carved out a solid position
for itself in the metal fabrication field.

The Company entered the electronicmaterials business in time for therise of the electronics industry in the
1980s, making sputtering targets forsemiconductors and transparent
conductive films for liquid crystal
displays, as well as materials forcompound semiconductors. With
the establishment of the Isohara
Works in Ibaraki Prefecture as a new
main manufacturing center, theCompany expanded into thedevelopment and manufacturing ofvarious electronics materials.

Kurami Works just after completion

The newly-established Isohara Works

Launched operations at
Kurami Works

Launched operations at
Isohara Works

2018

Acquired shares in H.C.
Starck Tantalum andNiobium GmbH (nowTANIOBIS GmbH)The Group acquired shares of H.C.
Starck Tantalum and Niobium GmbH
(now TANIOBIS GmbH), a German
manufacturer of metal powders, withan eye to expanding its businessareas in anticipation of dramatic
demand growth for electronic
components and devices.

TANIOBIS GmbH (Goslar Plant)

2022

Significant investment inadvanced materials
We acquired large sites in
Hitachinaka City, Ibaraki Prefecture,
Japan, and Mesa, Arizona, the U.S.,
for construction of new plants tomeet the growing demand foradvanced materials essential for DX
and decarbonization. We are looking
to have a smooth roll out.

Illustration of the completed Hitachinaka New
Plant (tentative name)

Sustainability Report 2023

6

Section 1 Vision & Values[Assuming Office as President]

Fully confident in our vision, even amid
significant environmental changes
Overcoming the challenges at handand doing what it takes to advancesteadily forward

JX Metals Corporation
President & Representative Director

Message From the President

Hayashi Yoichi

Aiming to leap forward as a global leader insemiconductor and ICT materials through strategic
investments to accelerate the growth of our Focus
Businesses, structural reform in our Base Businesses,
and social value creation
7

JX Metals Corporation

In 2019, the JX Metals Group announced the JX Metals Group
Long-Term Vision 2040, which declared our transformation into
a technology-based company. I was involved in creating thisvision, and I believe this vision is an important guidepost for the
future of the Group.
Surveying the landscape of future world trends reveals that
resource-rich countries are prioritizing their internal resources
holdings, due in part to rising resource nationalism. We expectthat Japan will face challenges in securing a stable supply of
resources in the future. It is also easy to imagine that the demand for advanced materials will accelerate as our data-driven
society progresses even further. While the population of Japan
has begun to decline, worldwide consumption will expand withgrowing global populations, economies, and the middle class in
Asia. Three important perspectives come to mind: Avoiding
resource depletion, utilizing advanced materials, and creating
sustainable societies.
Given such a world, in what direction will the JX Metals
Group journey? For one, in addition to mining mineral resources,
as we have done since our founding, we will secure resources
by focusing on recycling in the future. Second, we have built afoundation for technological development in advanced materials, which will become a growth driver. In terms of sustainability,
resource recycling is a given. At the same time, we expect advanced materials will stimulate technological innovation, which
in turn will contribute to the sustainability of societies with growing populations.
These perceptions form our basic direction. We have composed a picture in which we produce advanced materials andconduct materials development as our Focus Businesses, while
our Base Businesses supply sustainable materials to our Focus
Businesses in support.
These trends, which we first acknowledged about five years
ago, have only become more acute over time. The issue of climate change has emerged with torrential rains, floods, andtornadoes in many parts of the world, while the resulting humansuffering and economic loss have ballooned. Differences in ideas
among nations have become an even greater risk than expect-ed. For example, frictions have emerged between China andRussia, not to mention other countries and democracies. Thesefrictions increase the risk of supply chain confusion and disruptions. Maintaining supply chains under dysfunctional global
procurement is an urgent issue for manufacturers around theworld. Our Base Businesses are increasingly important in termsof securing raw materials to support our Focus Businesses,
which are the driver of JX Metals Group growth. At the sametime, recycling is also rising in importance.
I took the opportunity of my appointment to president toreexamine our long-term vision. I reaffirmed the critical nature ofthis vision in light of the latest social trends and the management
resources we possess. Under the current market conditions, wehave seen that in the latter half of fiscal 2022, semiconductor
and ICT materials entered an adjustment period from which they
have yet to emerge. Meanwhile, our Base Businesses face intense competition for recycling collection and weakening smelting margins due to the construction of new smelters in Asia. To
put it simply, my appointment as president is off to a challenging
start. However, we are fully confident in our chosen direction.
My current state of mind is to do what we must to make ourlong-term vision a reality.

[Reviewing the Previous Medium-Term Management Plan
and FY2022 Results]

Operating income of 305 billion yen
over the three years of the mediumterm management plan
Proof of portfolio reform andcompetence heading into the future
We view the medium-term management plan covering the threeyear period beginning fiscal 2020 as a period for sowing seeds
toward our vision. From this perspective, I believe we achieved
a certain degree of success. One example is our decision toincrease existing capacity for semiconductor and ICT materials,
which we have designated as growth areas. One of our mostsignificant achievements was our decision to build new plants
in Hitachinaka City, Ibaraki Prefecture, Japan, and in Arizona of
the United States. We made these decisions after detailed internal discussions to determine the direction of the projects.
Meanwhile, our Base Businesses faced a challenging business environment as expected. Even in this environment, however, we addressed issues that included improving capital effi-

Sustainability Report 2023

8

Section 1 Vision & Values
Message From the President

ciency and reducing interest-bearing debt. We also conducteda review of our business portfolio to improve profitability with aneye to the future. We concluded the sale of a portion of our interest in the Caserones Copper Mine, and we continued a review
of our copper smelting structure that began two management
plans prior, including the sale of our stake in LS-Nikko.
In terms of building a stronger foundation for ESG management, former president Murayama declared the Group’s stanceon decarbonization and began our shift to CO2-free electricity,
starting with the Caserones Copper Mine and major locationsin Japan. In August 2022, we organized the Group’s approachto the sustainable supply of copper, putting it into action in theform of the Sustainable Copper Vision. While Europe is theleading region in communicating concepts and regulations thatemphasize social value, few examples exist in Japan. We areproud of the real progress we have made in communicating theGroup’s philosophy internally and externally.
We are no different than most Japanese companies in our
disposition to be inward-looking regarding technology development, having a strong tendency to do everything in-house. Thatbeing said, we endeavored under the previous medium-termplan to adopt new mechanisms, including corporate venture
capital and investments in domestic and overseas startups. At
the same time, we began to reform our personnel system withan Idea Seed Bank, which serves as a platform for ideation
within the company. We also pursued human resources development appropriate for a technology-based company. Althoughthese efforts are not yet quantifiable, I believe we have planted
seeds for the future.
In terms of business performance, JX Metals Group operating profit for fiscal 2022 was 68.7 billion yen, a decrease of 89.5
billion yen compared with the previous fiscal year. One contributing factor was a valuation loss of 75.3 billion yen resulting fromthe sale of a portion of our interest in the Caserones Copper
Mine. Another factor was a decrease of 12.3 billion yen in profit
due to the sale of our shares in LS-Nikko, a smelting businesscompany in South Korea. A detailed analysis reveals various
factors contributing to the change in profit, but semiconductor
and ICT materials, which had been strong until fiscal 2021,
declined in the latter half of fiscal 2022. This decrease was offset
in part by improved sales prices for certain products, including
sulfuric acid in our Base Businesses. Excluding the losses due
to special factors, we view operating profit at around 140 billion
yen.
Including portfolio realignment, over the three years of themedium-term management plan through fiscal 2022, we generated a cumulative operating profit of 305 billion yen. Considering these results, including the impairment loss recorded for9

JX Metals Corporation

the Caserones Copper Mine, to be a strength, we see evidenceof growth and competence, particularly in our Focus Businesses. At the same time, we conducted growth investments of 300
billion yen over the past three years, which means our financial
position remains challenging.

[Medium-Term Management Plan for Fiscal 2023 to 2025]

Our new medium-term management
plan will be a phase to mark out
footprints for growth through thesteady execution of growth strategies
Recently, we announced a new three-year medium-term management plan beginning fiscal 2023. Under the basic philosophyof this plan, we aim to leap forward as a global leader in semiconductor and ICT materials through strategic investments toaccelerate the growth of our Focus Businesses, structural reform in our Base Businesses, and social value creation. When
we announced this new plan, we also announced that the Groupwould prepare for a public share listing. We also changed thecomposition of our business segments under the new plan in
our hope to provide a clearer understanding to stakeholders of
the Group’s growth strategy, helping stakeholders evaluate theresults of our efforts more efficiently. Under our Focus Businesses, we changed the former Functional Materials Division andThin Film Materials Division segment to the Semiconductor
Materials and ICT Materials segments. In line with this change,
we changed the name of our Base Businesses to Basic Materials. We believe these new classifications will make visualizing
our businesses and markets easier.
If the previous medium-term business plan was a phase forsowing seeds, then our new plan is a phase to mark out footprints for growth through the steady execution of our growthstrategy. No matter how aggressive our medium- to long-term
vision may be, we cannot secure the belief of our stakeholders
without a tangible footprint. The new plan is very important asa means to accumulate objective evidence and provide numerical support toward our long-term vision. Our target for cumulative operating profit over the three-year period is 309.2 billion
yen. While this may seem like a minor modification of the 305
billion yen target in our previous medium-term plan, this target
is actually an aggressive one when considering the sale of interests in the Caserones Copper Mine and LS-Nikko. This target
assumes 1.6-times growth in our Focus Businesses.
Our 2040 Long-Term Vision provides an annual operating

profit target of 250 billion yen. This target
reflects our expectation that Base Businesses will remain flat at around 50 billion
yen, while Focus Businesses will grow to
200 billion yen, four times the current size.
To reach this goal, our first order of business is to achieve the next three-year target
and then chart a more solid path forward.
Our reason for listing on the stock market is to accelerate our growth strategy by
speeding up decision-making and optimizing capital structure, measures that will leadto a transition. We will communicate the JX
Metals Group goals to the outside world,
including the stock market, in a mannereasy to understand. Our focus will be ongroupwide efforts to make JX Metals a recognized global leader in semiconductor
and ITC materials by the time we finish our
medium-term plan in fiscal 2025.
To this end, we must first ensure that the capital investments
and new plant projects under our Focus Businesses take concrete shape and that our stakeholders recognize the growthpotential of our group. Meanwhile, our Base Businesses encompass a major issue in terms of profit margins relative to invested
capital. From the perspective of resource recycling, which I
mentioned earlier, the smelting business represents an advantage, and we hope to improve capital efficiency as soon as
possible.
It goes without saying that we will take a more detailed approach to the people and technologies that support future
growth. We are already accelerating the growth of compound
semiconductors to create a new product line that will become
our next global niche product in addition to sputtering targets
for semiconductors and rolled copper foil. We are determined
to pave the way for crystal materials to become the next productline that supports profits during the span of this medium-term
management plan.
While this growth strategy requires significant capital, at thesame time, having made the decision to list shares, we mustalso solidify our financial position. Therefore, we launched a
project for structural reforms to ensure investments for growthand financial soundness. As part of this project, we launched afundamental review of our businesses with the cooperation of
everyone across the Group. These reforms will be from a zero-base perspective in all aspects, including cost structure, financial condition, investment plans, and business portfolio.

[Sustainable Copper Vision]Accelerating resource recycling anddecarbonization efforts with likeminded partners for the evolution andwider adoption of sustainable copper
In recent years, society has become increasingly aware of theneed to decarbonize and recycle resources. We, ourselves, felt
compelled to take action toward making the decarbonization
resource of copper more sustainable. Given these considerations, we announced the Sustainable Copper Vision, demonstrating our commitment to further measures for decarbonization, resource recycling, and responsible procurement. Over the
past year or so, we have seen steady results from our efforts. In
fact, we became the first Japanese company to obtain third-party certification for the calculation of the carbon footprint (CFP)of electrolytic copper. We were also the first Japanese company
to receive The Copper Mark certification, a framework for assuring responsible copper production.
In addition to our own internal activities, we pursue communication with companies involved in the production and use of
copper. Through these dialogues, we have come to understandthat many people share the same ideas and direction as our
Sustainable Copper Vision. We have also begun to identify theneeds that exist in the supply chain for the production and useof sustainable copper. Green Enabling Partnerships are one way
we work with companies and universities that share our goals

Sustainability Report 2023 10

Section 1 Vision & Values
Message From the President

and agree to work in concert to implement these initiatives. We
have already established partnerships with a number of entities
from arterial to venous. We issued public announcements together with Intel Corporation, BHP, and Waseda University.
We will continue to pursue appropriate technological development, capital investment, and product design based on the
wide-ranging needs of all parties involved in copper production
and use. The Group will also cooperate with other companies
and universities with which we have established partnerships toco-create efficient resource recycling systems, decarbonize
supply chains, and offer products with higher environmental
value and traceability to the world.

[The Keys to Change]

To shift from an equipment-oriented
industry to a technology-oriented one,the most important change is achange in mindset
The JX Metals Group is shifting from an equipment-oriented
company to a technology-oriented company, aiming for global
growth through advanced materials. This change, however, is
not as easy as it sounds. First, we must attract people who haveideas about product development and manufacturing for advanced materials. At the same time, no matter how superior thetechnology, nothing will be brought to the market when hampered by a fear of failure. It takes energy and fearless determination to engage in business development with an eye for the
future. That energy is the unwavering desire to make it happen
because the task is simply too important. The most crucial factor
in shifting from an equipment-industry orientation to a technology orientation is changing the mindset of our people.
A technology-based company must have new ideas, logic,
and discussions that transcend the status quo. A technology-based company must have a culture that values the processof creating new technologies, whether they result in success or
failure. New developments are most likely to come from newideas. Therefore, we must first nurture ideas. We must train our
technical staff and administrative staff to embrace new ideas
and challenges. Managers and systems must be in place toevaluate our employees in this light. Our companies must be
attractive workplaces that hire, train, and elicit maximum performance, including a personnel evaluation system, job rotations,and other measures. I recognize that these efforts related tohuman resources and workplace environments represent high

11 JX Metals Corporation

hurdles.
But as we develop these ideas further, we must eventually
ask ourselves whether our production sites are acceptable as
they are today. For example, issues related to work styles arelikely to emerge, including whether equipment and machinery
can be monitored remotely. There are concerns that manufacturing will become unviable in 10 years without process innovation and labor savings. One major issue is developing humanresources who think about on-site reform and have an objective
view of the future.
During the previous medium-term management plan, we
implemented a complete revision of our human resources system. Our objectives included evaluating and compensating key
on-site support employees appropriately, recruiting and developing employees capable of growing our businesses, and providing environments in which every employee feels confident intaking on challenges. We also introduced flexible job rotations,such as transferring employees from business divisions to leadcorporate divisions. People tend to think of things based on theirown experiences. We want to take on reforms from fresh perspectives and ideas, respecting the opinions all manner of individuals, even those who have little experience or widely different
experiences.

[Materialities]

Contribute tangible results to society
for social issues suited particularly to
JX Metals
The JX Metals Group has identified six materialities for priority
action to realize our 2040 Long-Term Vision. Each materiality
includes KPIs.
We consider contributing to environmental conservation ourhighest priority, not only through carbon-neutral initiatives, but
through what we do as a non-ferrous metals producer, as described in the Sustainable Copper Vision. Because we are in themineral resources and smelting business, we are in a uniqueposition to ensure traceability from the mining stages. We believe we can provide indispensable materials to the world in atransparent and environmentally friendly manner.
We provide advanced materials that support lives and lifestyles. Here, the copper, minor metals, and precious metals we
produce are indispensable for building sustainable and prosperous societies. Our products are critical for semiconductors, ICT,and renewable energy infrastructure. We understand that sup-plying these materials is equally linked to contributing to lives
and lifestyles.
Coexistence and co-prosperity with local communities is aconcept we inherited from the company policies traced back to
our original founding. For my own part, I want to take a broader
view of the term local communities, contributing to the nation ofJapan. Recently, we have seen more discussions on the importance of economic security. Japan supplies a significant portionof materials to the global semiconductor industry, even though
Japan’s share of chip manufacturing itself is minimal. Beyond
semiconductors, raw materials will become increasingly important in industrial innovation. When that happens, we want tocontribute to coexistence and co-prosperity with regions andcountries, understanding where we can offer our strengths. We
have seen a dramatic increase in the risk of supply chain disruptions in areas such as minerals and energy. Japanese manufacturers that possess superior materials must consider how
to hedge risk with their own systems in place to avoid bottlenecks at the origins of where resources are located. This perspective is very meaningful. To coexist and co-prosper with theJapanese nation, industries, and other companies, we must add
to our own strengths by ourselves.
To strengthen governance, we changed our legal structure
to a company with an Audit Committee, effective June 28, 2023.
We also added two independent outside directors, bringing thetotal number of independent outside directors to five. More than
10 years have passed since we removed our shares from thepublic market. During that time, we have had limited opportunities to experience external evaluations directly, including assessments related to the stock market. Corporate governance haschanged dramatically over the past decade or so. This change
is why we selected highly expert individuals willing to evaluate
our governance from a strict perspective. Under this new structure, we will improve the effectiveness of the Board of Directors
and strengthen governance to enhance corporate value.

social issues with transparency and traceability. With such upstream and downstream management resources, the JX Metals
Group is capable of producing advanced materials in a stablemanner, controlling capital efficiency, and pursuing sustainability
from an ESG perspective.
We are determined to achieve the corporate image we envision for ourselves. We also want to become a widely recognized company capable of communicating just who JX Metals
is to all parties, whether it be our shareholders, investors, business partners, or employees and their families. And we areconfident that your direct support will bring us closer to the vision we strive to achieve.

[Message to Stakeholders]

JX Metals aspires to be a well-loved
group with a well-known vision
We want investors to understand first that we are moving toward
the long-term vision we have set for ourselves. The key phraseof this vision is to be the global leader in semiconductor and ITC
materials. At the same time, we want you to understand thateven as various issues in the supply chain emerge, we—with
our resources and smelting business—are a group that solves

Sustainability Report 2023 12

Section 1 Vision & Values

Long-Term Vision and Medium-Term
Management Plan

Previous Medium-Term Management Plan

In 2019, we formulated our Long-Term Vision 2040 to transform from an equipment industry company to a technology-based company, aiming to become a global company contributing to the growth and innovation of society through advanced materials. We
formulated our Medium-Term Management Plan for Fiscal 2020 to 2022 based on this vision. Under that plan, we engaged in
specific initiatives to achieve our vision, including strengthening our production capacity for sputtering target for semiconductors,
treated rolled copper foil, high-performance copper alloys, and other advanced materials, developing new businesses in collaboration with external partners, and implementing structural reform in our Base Businesses.
After operating for four years under this vision, we conducted a partial revision in May 2023 in response to the recent changes inthe business environment and a clearer picture of the direction we want to pursue. We adjusted our sights, redefining businesssegments based on this future direction and business lines while stating a clear profit target for 2040.

Measures Implemented Under the Previous Medium-Term Plan

The Medium-Term Management Plan 2020-22 was positioned
as a three-year period for sowing seeds for transformation into
a technology-based company through business operations with

Expand Strategic Investment andPromote Technology Development• Expand production capacity to meet growing demand• Hitachinaka New Plant (tentative name) andinvestments to create a portfolio centered on the Focus
Businesses

The JX Metals Group Long-Term Vision 2040

Contribute to sustainable societies as a global leader in semiconductor and ICT
materials● Long-term earnings target• Stabilize profitability and minimize volatility byreshaping asset portfolio• Support transformation to center on Focus Businesses

HQ relocation (to introduce dynamic management and develop personnel oriented to added value)

Main Revisions in the Long-Term Vision● Redefinition of the position and roles of Base Businesses

Base Businesses• Build fundamentals to develop next pillar of profits• Promote sustainable copper projects for our ESG
management

FY2020● Redefined segments

Implement Reforms andContribute to the SDGs

Review Business Portfolios

Technology-Based Businesses,
ESG Initiatives, Etc.

Focus Businesses● Changes in underlying trends

greater autonomy, agility, and independence as set forth in the
JX Metals Group Long-Term Vision 2040, and we accelerated
efforts in new growth areas.

Collaboration with Novel Crystal Technology, Inc.

Restructuring of copper business(changed smelting structure)

Capacity expansion of semiconductor sputtering target

Establishment of JX Metals Research Institutefor Technology & Strategy Co., Ltd.

Investment in scrap treatment capacity

Capacity expansion of treated rolled copper foil

Establishment of Crystalline Material Business andBattery Material & Recycling Promotion Offices

Sale of P.T. Smelting

Point 1
Point 2

● Declaration of our decarbonization vision

FY2021

Establishment of lithium-ion battery
recycling subsidiaries in Japan/Germany
Collaboration with a national research laboratory (AIST)

Point 1

Redefined Segments

Point 2

We established three segments. To properly communicate ourpath to growth to stakeholders, we established two segments
under Focus Businesses: the Semiconductor Materials Segment
and the ICT Materials Segment. Under Base Businesses, weestablished one segment called the Metals & Recycling Segment, which combines Mineral Resources and Metals & Recycling into one.

Long-Term Earnings Target
Implementation of sustainable copper

We aim to lift operating income to 250 billion yen in 2040 backed
by high-margin, high-growth Focus Businesses

CO2-free electricity at major locations in Japan and overseas
Implementation of the new factory in Hitachinaka
FY2022

Implementation of North America New Plant (tentative name)
TOB Announcement of
Tatsuta Electric Wire and Cable, Co., Ltd.

Acquisition of eCycle Solutions

Investment in NanoWired GmbH

Sale of LS-Nikko Copper(Investment in Mibra Mine)

Division/Operating Company

Segment

Acquisition of Maruwn

Operating Income Growth Toward 2040

Investment in Mibra Mine
Awarded the Copper MarkPartial sale of Caserones Copper Mine interests

250.0(Bil. yen/year)

Thin Film Materials Division
Semiconductor
Materials
Focus
Businesses(Downstream)

Previous Medium-Term Management Plan Results (Operating Income)Tantalum and Niobium Division

Functional Materials Division
Toho Titanium Co., Ltd.,
Tatsuta Electric Wire andCable Co., Ltd.

Base
Businesses(Upstream)

13 JX Metals Corporation

Focus
Businesses
200.0

ICT Materials

43.0

58.6

Mineral Resources Division
Metals &Recycling
Metals & Recycling Division

101.7

FY2020

103.1

Focus
Businesses

66.1

Base
Businesses

37.0

Avg. for 2020-22 Plan Avg. for 2023-25 Plan (Target)

Base
Businesses
50.0
2040 (Target)(billions of yen)

FY2021

3-YearCumulative

FY2022Functional Materials Business,
Thin Film Materials Business

31.1

54.5

56.4

Mineral Resources Business

34.9

72.1

-22.0

Metals & Recycling Business

27.3

41.0

40.7

Common Business Expenses

-15.2

-9.4

-6.4

-31.0

Total

78.1

158.2

68.7

305.0

142.0

194.0

*Common expenses are allocated to the two businesses in proportion to operating income

Sustainability Report 2023 14

Section 1 Vision & Values● Summary of Business Results for FY2022

we conducted an assessment of fair values for the assets of the
SCM Minera Lumina Copper Chile in the wake of our decision
to transfer our shares in the mine, and we recorded a loss of
75.3 billion yen.
The Metals & Recycling Business recorded an increase inprofit stemming from improved international market conditions
for sulfuric acid and the weak yen.
As a result, revenue for the fiscal year under review rose
26.7% year on year to 1,637.8 billion yen, while operating profit
declined 89.5 billion yen year on year to 68.7 billion yen.

Year-on-year product sales were lower generally in the Functional Materials and Thin Film Materials Businesses leading tolower profit. This result was mainly due to declining demand for
consumer electronic devices in the semiconductor market, theeconomic slowdown due to China’s Zero-COVID policy, andinventory adjustments in the supply chains affected by thesefactors.
Despite increased production at the Caserones Copper
Mine in Chile, the Mineral Resources Business saw lower copper
price levels compared with the previous fiscal year. In addition,

Medium-Term Management Plan for Fiscal 2023 to 2025
Under the new medium-term management plan launched infiscal 2023, we aim to be a leading global supplier of semiconductor and ICT materials by executing strategic investments forRole of the Current Medium-Term PlanFirst Plan
2017

Previous Plan
2019

FormulateLong-Term Vision

2020

New Plan
2022

Operating Profit(billions of yen)(billions of yen)(billions of yen)

2,000

200

200

1,637.8
1,500

Profit Before Tax

163.9

158.2

ESG-related
initiatives

150

150

1,293.0

Initiatives for
maximizing
equity value

Next Plan and Beyond

2023

2025

Prepare fortransformation into
technology-based company

Financial Performance (Consolidated, IFRS)Revenue

Focus Businesses, reshaping the operational structure of BaseBusinesses and creating social value.

2026

Achieve LongTermVision

Carry out growth strategy

Focus
Businesses

Strategic investments tocapture market growthTechnology
Development

Create a third pillar of profits after sputteringtarget for semiconductors
and treated rolled copper foil

Base
Businesses

Reshape operational structure focusing
on capital efficiency

Corporate

Build a robust financial foundation

Realization of the Sustainable Copper Vision

1,092.1
1,000

100

500

0

72.0

68.7

2021

2022

(FY)

0

2020

2021

2022

(FY)

*Including inventory effects

Net Income Attributable to Owners of
ParentTotal Assets and Total Liabilities(billions of yen)(billions of yen) ■■Total Assets

100

2000

93.1

63.5

50

50

2020

● New Plan: Business Plan

100

78.1

0

2020

2021

2022

(FY)

Although the business environment wasdifficult at the beginning of the period
due to ongoing electronics market adjustments since fiscal 2022, we aim toachieve a cumulative operating income
higher than the previous medium-termplan by capturing demand in the periodof recovery onward. In addition, we will
execute aggressive strategic investments to prepare for increased demandin our Focus Businesses.

3-Year Total Operating Income

309.2 bil. yen
305.0 bil. yen
Focus
Businesses
142.0（42%）

1500

64.5

■■Total Liabilities

1000

915.6

1,058.8

2021

2022

Previous Medium-Term Plan
(2020-2022 3-year total)

1,216.0

Semiconductor
Materials
143.9
ICT Materials
86.6
Base
Businesses
Metals &Recycling
146.4
(39%)

Focus
Businesses
230.5（61%）

Decreased equity
sale of Caserones
and LS Nikko

Common expenses, etc.
-67.6
New Plan(2023-2025 3-year total)● Planned Capex
500

2020

Secure profits
based on steadycopper price

1,452.2

36.5

20

0

Expansion by
1.6 times due tosales increase withdemand growthCommon expenses, etc.
-31.0

1,859.2

60

40

ICT Materials
61.5
Base
Businesses
Metals &Recycling
194.0
(58%)

1,657.1
80

Semiconductor
Materials
80.5

(FY)

0

2020

2021

2022

(FY)

Under the Medium-Term Management
Plan for Fiscal 2023 to 2025, we intend toinvest 290 billion yen over the three-year
period to prepare for increased demand in
the Focus Businesses. Of this amount, wehave set aside 170 billion yen as Focused
Investments that we expect to conduct infiscal 2026 onward. Focused Investments
include the construction of the Hitachinaka
New Plant (tentative name) and the creation of new businesses.

New Plan: Planned Capex
Previous Plan
(FY2020-22 3-Year Total)

New Plan (FY2023-25 3-Year Total)
89%

Percentage of investment
in Focus
Businesses: 58%

Increase total
amount andpercentage ofstrategic
investments

240.0

Strategic
Investment
130.0
Maintenance
Capex
110.0

Strategic
Investment
290.0

440.0

97%

Details of
290 bil. yen in
strategic
investments

Hitachinaka
New Plant
130.0

New businesses 30.0

Investment inFocus Businesses
to yield results
during FY2026 andbeyond170 bil. yen

Existing businesses 10.0

Maintenance
Capex
150.0

Investment to yield
results during newplan 120 bil. yen

Focus Businesses
110.0
Base Businesses 10.0

<Actual>

15 JX Metals Corporation

Sustainability Report 2023 16

Section 1 Vision & Values

Global Network (as of July 14, 2023)
JX Metals Corporation has many production sites and Group companies in Japan and overseas. By utilizing this Group
network, we are able to meet the increasingly sophisticated and diverse needs of our customers and society, and provide themwith new value.

EuropeNorth America

Japan● Frankfurt Office● eCycle Solutions Inc.

● JX Metals Tomakomai Chemical Co., Ltd.

● JX Nippon Mining & Metals Europe GmbH● JX Nippon Mining & Metals USA, Inc.

● JX Metals Precision Technology Co., Ltd., Esashi Works● TANIOBIS USA LLC● Ichinoseki Foil Manufacturing Co., Ltd.

● Toho Titanium America Co., Ltd.

● JX Metals Takasho Co., Ltd., Shirakawa Plant

Asia● JX Metals Circular Solutions Europe GmbH● TANIOBIS GmbH● JX Metals Korea Co., Ltd.

● TANIOBIS Smelting GmbH & Co. KG● Poongsan-Nikko Tin Plating Corporation● Isohara Works● Toho Titanium Europe Co., Ltd.

● JX Nippon Mining & Metals Shanghai Co., Ltd.

● Hitachi Works● Nippon LP Resources UK Ltd.

● Nikko Metals Shanghai Co., Ltd.

● JX Metals Smelting Co., Ltd., Hitachi Works● Nippon Mining & Metals (Suzhou) Co., Ltd.

● JX Metals Environmental Services Co., Ltd.

● Nikko Fuji Precision (Wuxi) Co., Ltd.

● Toho Titanium Co., Ltd., Hitachi Plant● JX Nippon Mining & Metals Dongguan Co., Ltd.

● TANIOBIS Japan Co., Ltd., Mito Plant● Nikko Shoji Hong Kong Co., Ltd.

● Furuuchi Chemical Corporation, Tsukuba Factory● Shenzhen Nikko Shoji Co., Ltd.

● JX Nippon Coil Center Co., Ltd., Kurami Office● Nikko Metals Taiwan Co., Ltd.

● JX Metals Precision Technology Co., Ltd., Nasu Works● Materials Service Complex Vietnam Co., Ltd.

● Tokyo Denkai Co., Ltd.

● JX Nippon Mining & Metals Philippines, Inc.

● Kurami Works

Middle East
● Advanced Metal Industries Cluster and Toho Titanium Metal

Company Limited● JX Nippon Coil Center Co., Ltd., Kurami Office● TANIOBIS Co., Ltd.

Central and South America● Materials Service Complex Coil Center (Thailand) Co., Ltd.
● Materials Service Complex Malaysia Sdn. Bhd.
● JX Nippon Mining & Metals Singapore Pte. Ltd.

● Toho Titanium Co., Ltd., Chigasaki Plant● JX Metals Mikkaichi Recycle Co., Ltd.

● JX Nippon Mining & Metals Exploration Peru S.A.C.
● Compania Minera Quechua S.A.
● Escondida Copper Mine
● Caserones Copper Mine
● Los Pelambres Copper Mine
● Chile Office● JX Nippon Mining & Metals Chile SpA● JX Nippon Mining & Metals Exploration Chile Limitada● Toho Titanium Co., Ltd., Kurobe Plant● JX Metals Precision Technology Co., Ltd., Kakegawa Works● Osaka Alloying Works Co., Ltd.
● JX Metals Circular Solutions Co., Ltd.
● JX Metals Trading Co., Ltd., Takatsuki Plant● Tatsuta Electric Wire & Cable Co., Ltd., Osaka Plant● Toho Titanium Co., Ltd., Yahata Plant● Toho Titanium Co., Ltd., Wakamatsu Plant● JX Metals Smelting Co., Ltd., Saganoseki Smelter & Refinery● Japan Copper Casting Co., Ltd., Saganoseki Works● JX Metals Smelting Logitech Co., Ltd.
● Kasuga Mines Co., Ltd.

Corporate Profile
Company NameJX Metals Corporation

Paid-in Capital

75.0 billion yen (wholly owned by ENEOS Holdings,
Inc.)

Representative

President and Chief Executive Officer
Hayashi Yoichi

Revenue

1,637.8 billion yen (FY2022, consolidated)

Head Office10-4, Toranomon 2-chome, Minato-ku,
Tokyo105-8417, JapanThe Okura Prestige Tower

Business Lines

17 JX Metals Corporation●Thin Film Materials Business●Tantalum and Niobium Business●Functional Materials Business●Titanium Business●Metals & Recycling Business●Mineral Resources Business

Employees(Non-Consolidated)

3,345 (as of March 31, 2023)

Employees(Consolidated)

10,759 (as of March 31, 2023)

Domestic
Operating Sites●Hitachi Works (Ibaraki Prefecture)●Isohara Works (Ibaraki Prefecture)●Kurami Works (Kanagawa Prefecture)●Technology Development Center (Ibaraki

Prefecture)

Overseas
Operating Sites*●Chile Office●Frankfurt Office* The JX Metals Group conducts business in 13 countries and regions outside Japan.

Sustainability Report 2023 18

Section 1 Vision & Values

Responding to International Norms andInitiatives
The JX Metals Group will contribute to achieving a sustainable society by complying with social demands such as international
norms and initiatives. To this end, we are actively participating in initiatives. We also participate actively in nonferrous metals andother various industry associations, incorporating the knowledge gained through opinion exchanges and information sharing in ourbusiness activities.

Communication With Industrial Associations
Name of Association

Japan Copper and Brass
Association (JCBA)

Japan Society of Newer
Metals (JSNM)

Japan Mining Industry
Association (JMIA)

Carbon Disclosure Project (CDP)GX League

The CDP is an international NGO based in London. It is anorganization that collects, analyzes, and evaluates information on theenvironmental activities of the world’s major corporations anddiscloses these results to institutional investors. Our company engages
in the disclosure of information on climate change and water safety,
which the CDP has identified as priority issues. We also disclose
information through questionnaires to our business partners.

The GX League, led by the Ministry of Economy, Trade and Industry(METI), is a framework for industry, government, and academia tocollaborate in the challenge of Green Transformation (GX) with a viewto achieving carbon neutrality by 2050 and reforming Japan’s entire
economic and social system. In addition to expressing our support for
the GX League Basic Concept, we also announced our participation in
Phase 1 from fiscal 2023 to fiscal 2025.

WEB

The Role of
JX Metals in
FY2022

Activity Content

Chairperson

The JCBA works with member companies to promote progress and growth throughout theentire copper production industry. The Group sits on the Roadmap Committee to take part in the
improvement of quality and the discovery of new demand. The Group is also involved in thesurvey and reporting of market size as a member of the Statistics Committee.

Vice
Chairman

The JSNM was established to promote the sound growth of new metals that support high-techand related industries through research and the collection and provision of information. JX
Metals sits on the Compound Semiconductors Subcommittee and the Target Subcommittee inorder to be involved in the survey and reporting of market size, as well as to take part inproviding opinions and advice to concerned government ministries and agencies. JX Metals alsosits on the Safety Committee to contribute to the improvement of health and safety throughout
the industry.

Director

The JMIA is an association of companies engaged in the smelting business and nonferrous
metal resource development. JMIA promotes the sound growth of the industry by conducting
research and publicizing knowledge for technical improvement and making policy proposals toconcerned government ministries and agencies. The JX Metals Group served as the director of
the association in fiscal 2022.

Japan Catalyst Recovering
Association (JCRA)

Chairperson

Comprising of companies engaged in the reuse of catalysts, JCRA was established to promote
the recycling of precious and minor metals through the appropriate processing of used catalysts.
It holds periodical training for technical improvement and mutual communication among
members while engaging in the investigation and collection of statistics relating to recycling. We
serve as the chairperson of the association and are also involved in the publication of survey
reports as well as the management of general meetings as a member of the PR Committee.

The Sulphuric Acid
Association of Japan

ViceChairman

This association aims for the sound development of the sulfuric acid industry in Japan. JX Metals
is involved in the administration of the association as well as in the survey and reporting of
supply and demand as a member of the Operations Committee and General Affairs Committee.

Related Initiatives
United Nations Global Compact

Task Force on Climate-related Financial Disclosures (TCFD)

CDP WebsiteWEB

GX League Website

https://www.cdp.net/en

https://gx-league.go.jp/en/

Challenge Zero

Partnership Development Declaration

Challenge Zero is an initiative established by Keidanren, in partnershipwith the Japanese government, to encourage companies andorganizations to innovate toward creating decarbonized societies. The
JX Metals Group announced our participation in June 2020.

The Partnership Development Declaration is an initiative that aims toincrease added value throughout the supply chain by having corporate
leaders declare supply chain-wide coexistence and coprosperity, thatnew partnerships will transcend size, affiliation, etc., and thatparticipants will engage in desirable business practices with
subcontractors. We announced our participation and declaration in
April 2022.

WEB

WEB

Challenge Zero Website

Partnership Development Declaration Portal Site
(Japanese Only)

https://www.challenge-zero.jp/en/

https://www.biz-partnership.jp/

WIPO GreenWhite Logistics Movement

WIPO GREEN is a framework for technology exchange launched by
the World Intellectual Property Organization, a specialized agency of
the United Nations. The aim of this organization is to spread theadoption of environmental technologies and promote innovation.
Entities participate by registering environmental technology in theorganization’s database. WIPO then matches technology withindividuals and organizations. We have registered intellectual property
related to our proprietary copper-recovery technology, the JX-Iodine
Process, in the database.

The White Logistics Movement is a movement promoted by the
Ministry of Land, Infrastructure, Transport and Tourism (MLIT) to
encourage an understanding among companies and the publicregarding sustainable logistics. We announced our participation in April
2020, and our Logistics Department leads company-wide efforts inthis area.

WEB

WIPO GREEN Website

WEB

White Logistics Campaign Portal Site
(Japanese Only)

https://www3.wipo.int/wipogreen/en/

https://white-logistics-movement.jp/

Copper MarkResponsible Business Alliance (RBA)
The RBA is an industry association consisting mainly of electronics
manufacturers and suppliers of electronic components. Many of ourcustomers are members of the RBA. The JX Metals Group pursues
stronger ESG initiatives by conducting activities in accordance with thecode of conduct established by the RBA.

The United Nations Global Compact is a global framework forcompanies and organizations to act as good members of society andachieve sustainable growth. We have been participating in the program
since August 2008, supporting the 10 principles in four areas and are
striving to achieve them.
WEB

UN Website

https://www.unglobalcompact.org/

19 JX Metals Corporation

The TCFD is an organization established by the Financial Stability
Board (FSB) that recommends companies disclose climate changerelated risks and opportunities. In May 2019, ENEOS Holdings
endorsed and signed the recommendations set out by the TCFD. In
response, the Group is moving to disclose information in line with theaims of these recommendations.
WEB

TCFD Website

https://www.fsb-tcfd.org/

Established in 2019, the Copper Mark is a framework to demonstrate
the copper industry’s responsible production and contributions to the
SDGs of the United Nations. In December 2022, Saganoseki Smelter& Refinery and Hitachi Works, operated by JX Metals Smelting Co.,
Ltd., became the first plants in Japan to acquire Copper Markcertification.
WEB

WEB

RBA Website

https://www.responsiblebusiness.org/

Copper Mark Website

https://coppermark.org/

Sustainability Report 2023 20

Section 1 Vision & Values
B
A

D

F
E

C

On the role of outside director and assessments of
the Company’s governance structure

Outside Directors Roundtable Discussion
We held a roundtable discussion on July 31, 2023, to discuss governance, challenges for future growth,and sustainability initiatives at the JX Metals Group.
A Outside Director (Audit & Supervisory Committee Member)

Sakuma Soichiro
Joined the predecessor to the current Nippon Steel Corporation in
1978. Served as representative director and executive vicepresident of Nippon Steel Corporation. In addition to serving
currently as an executive advisor of NS Solutions Corporation, Mr.
Sakuma also performs other duties as chair of the Public Interest
Commission of the Cabinet Office of Japan, president of theJapan International Dispute Resolution Center, president of the
Global Industrial and Social Progress Research Institute, andvice-chair of the OECD-BIAC Investment and Responsible
Business Committee. He became an outside director with JX
Metals Corporation in June 2022.

B Outside Director

Itoh Motoshige
Awarded a Ph.D. in economics from the University of Rochester in
1979. After serving as a professor in the Graduate School of
Economics at the University of Tokyo, chair of the Nippon Institutefor Research Advancement, and professor in the Faculty ofInternational Social Science at Gakushuin University, he assumed
his current post as professor emeritus at the University of Tokyo in
June 2016. Mr. Itoh served as a member of the Council on
Economic and Fiscal Policy for six years beginning in 2013. He
has been an outside director of the Company since April 2022.

C Outside Director

Tokoro Chiharu
In 2004, Ms. Tokoro was named assistant professor at Waseda
University, School of Science and Engineering. Named professor,
Faculty of Science and Engineering, Waseda University, in 2015
(to present). In 2016, she became a project professor at the
University of Tokyo, Institute of Industrial Science (to present). In

21 JX Metals Corporation

2021, she was named professor at the University of Tokyo,
Graduate School of Engineering (to present). She has been an
outside director of the Company since April 2021. In September
2022, she was appointed associate director of the Waseda
Institute for Advanced Study and associate director of the
Waseda Center for a Carbon Neutral Society (to present).

D Representative Director and Chairman, JX Metals Corporation

Murayama Seiichi
E Outside Director (Audit & Supervisory Committee Member)

Kawaguchi Rika
Registered as an attorney in 1997. Member of the Dai-Ichi Tokyo
Bar Association Committee for Labor Laws (to present). Vice
president of the Dai-Ichi Tokyo Bar Association, executive directorof the Kanto Federation of Bar Associations, and other posts. In
2021, Ms. Kawaguchi became a family mediator of the Tokyo
Family Court, vice president of the Dai-Ichi Tokyo Bar Association
Promotion for Gender Equality Headquarters, member of theJapan Federation of Bar Associations Promotion for Gender
Equality Headquarters, and controller of the Japan Philanthropic
Association (to present). She became an outside director with JX
Metals Corporation in June 2023.

F Outside Director (Audit & Supervisory Committee Member)

Futamiya Masaya
Joined Sompo Japan Insurance Inc. in 1974. Named president
and chief executive officer of Nippon Koa Insurance Co., Ltd. andchair of Sompo Japan Nipponkoa Insurance Inc. (currently Sompo
Holdings, Inc.). Named chair of the Japan Network for Public
Interest Activities in 2018 (to present). Named senior advisor,
Sompo Holdings, Inc. in 2022 (to present). Mr. Futamiya became
an outside director with the JX Metals Corporation in June 2023.

Murayama Seiichi: In May 2023, we announced preparations
to list our shares, and we are working to strengthen our governance structure in a manner appropriate for a listed company.
We expect outside directors to make recommendations basedon their respective experiences and expertise.
Futamiya Masaya: I am a newcomer to the board, but I plan
to offer my input freely in the form of questions and proposals
regarding risk management and compliance from the perspective of a corporate manager, as well as how to communicate
medium- to long-term growth scenarios to audiences in Japanand overseas. I will also be happy to share my experience in thearea of sustainability, including initiatives for biodiversity andhuman rights.
Kawaguchi Rika: I hope to help the Company build a strong
governance structure based on my experience as an outside
member of the Audit & Supervisory Committee, work in humanresources and labor relations, and expertise as a lawyer. My life’s
work is in promoting gender equality, so I want to contribute toan awareness of true diversity in the Company in terms of making it easier for employees to work.
Itoh Motoshige: From an outside perspective as a researcher,
I want to offer insights on economic trends. Recently, government councils have been discussing the SDGs and other topics.
I believe I can offer advice on connecting government policy andbusiness, as well as how public-private partnerships can work
effectively.
Sakuma Soichiro: My background is in the metals industry.
Despite the differences between ferrous and nonferrous metals,
I think there are many similar management issues. I also haveexperience creating governance systems for government councils and at the Japan Business Federation (Keidanren). I think
the Company has already formed a solid framework for an initialpublic offering by establishing itself as a company with an Audit& Supervisory Committee and full-time members of the Audit &Supervisory Committee.
Tokoro Chiharu: As a technology specialist, I am well aware of
the high technological capabilities and future-oriented development activities of the Company. Joining the Board of Directors
has provided a solid understanding of the situation backed byevidence. I think one of my roles is to provide advice to ensurethat these wonderful technologies are evaluated properly.
Itoh: Society is changing rapidly, so discussing how to follow oranticipate the changes is important. It is also very important todiscuss directions and mechanisms at length within the Company. As outside directors, we want to participate in these discussions actively.
Sakuma: For having a traditional background, the Company has
a flat and open culture. This culture may be due to the fact thatthe business is orienting toward more advanced semiconductor
and ICT materials. I think the Board of Directors mirrors thiscorporate atmosphere, which is conducive to discussion.

Murayama: Under a new structure beginning this fiscal year, wehave five outside directors, including Mr. Futamiya and Ms.
Kawaguchi as new outside directors. We want to move forward
while strengthening our governance structure by drawing on the
wide-ranging expertise of our outside directors in managing a
corporate board.

Challenges in the run-up to an IPO and future
growth strategy
Itoh: The Company has highly competitive products in new
fields such as semiconductor and ICT materials. With the increasing focus on decarbonization and resource recycling, I
believe the Company has become a key player in the market.
So, in preparation for the IPO, it will be important to first communicate the long-term strategy and investments in growth tothe outside world. At the same time, the background to theCompany’s strength in advanced materials is the accumulationof technology and experience over a long history. Therefore, JX
Metals must act with a sense of speed in deciding how to reaffirm that value.
Sakuma: The most important issue in moving toward an IPO is
to achieve steady growth. The Company has already establisheda vision with goals to raise operating profit from the current levelof 100 billion yen to 250 billion yen by the year 2040. To do thatwill require a third pillar that is not part of the current productmix.
Futamiya: It’s a very positive move that the Company has established a vision for 2040. The year 2030 is the year of theSDGs, while 2050 is the target year for decarbonization. I thinkthat by 2040, which lies between these two milestones, theCompany will have a history of successes, and the target of
focused efforts will become clearer. I believe the Company’s
growth will be guided by its position as a technology-based
company responding to needs for advanced materials, which
are indispensable for the transformation to solve global issues.
Tokoro: As you say, the foundation of the Company is its technology-based approach. It will be important for future growth tofoster basic capabilities applicable to any needs that may arise.
Environmental issues and other societal demands are changing
at a pace faster than we could have imagined. This change isan opportunity, but also a risk if misjudged. It will be importantto seize upon the opportunities without fail.
Futamiya: To establish a correct understanding of the significance of the Company’s role and expectations for the future,
the Company must tailor communication not only to institutional
investors, but also to NPOs and civil society. Both sides musthave a correct understanding and expectations for the Company
to receive support from well-educated shareholders.
Kawaguchi: One approach to gaining the understanding of civilsociety is through dialogue and collaboration. This area is aweakness for Japanese companies. It would benefit the Company to increase access to public interest foundations andNPOs, offering the abilities and skills of employees directly to

Sustainability Report 2023 22

Section 1 Vision & Values
Outside Directors Roundtable Discussion

where there is a need. More initiatives to respond employees
who want to be of service to society.
Tokoro: In my role as a university faculty member, I have regular
opportunities to be in laboratory classes for elementary andjunior high school students led by Company employees. Recently, I observed how the Company is revitalizing a local community by sponsoring a local soccer club. It is important that theCompany continues activities contributing to the well-being ofcommunity residents and employees to deepen its value offeringand earn the trust of civil society.
Murayama: In 2019, we formulated our first long-term vision,
which defined us as a technology-based company responding
to the expectations of our stakeholders through advanced materials. As you pointed out, we believe that we must change ourcorporate structure to one that takes on challenges routinely ina rapidly changing world. Only after we achieve this formation
will we be able to become a company talked about in terms ofgrowth potential.

ESG and sustainability
Tokoro: The Company established its Sustainable Copper Vision for fiscal 2022. The world still considers copper, steel, andplastics as a single material in terms of recycling. Each material
has its own direction for sustainability, so it’s important to communicate this in a way that is easy to understand, domesticallyand internationally. The Sustainable Copper Vision shows the
direction for copper materials to be sustainable and what role
the Company plays in that direction. The Company needs toemphasize this vision in communications.
Futamiya: The general belief is that thermal recycling, which
accounts for more than half of the recycling in Japan, emits alarge amount of CO2. I was surprised to learn that the Company’s Green Hybrid Smelting process reduces CO2 significantly. I
was also surprised to hear that the Company is quantifying andproducing more accurate data regarding not only Scope 1 and2, but also Scope 3 figures. This gives me the impression that
the Company is addressing this issue in a very deep and technical way.
Sakuma: Copper is dominant within the metals industry, but ina completely different position from iron or aluminum. There arethree reasons for this difference. The first is that copper, with its
high electrical conductivity, will play a leading role in green anddigital transformation. Second, as Mr. Futamiya mentioned,
smelting is done in flash furnaces, which basically eliminates the

23 JX Metals Corporationneed for fossil fuels. Third is that the use of urban mines is economically viable. The Sustainable Copper Vision, based on thesepoints, is both rational and praiseworthy. But I think the Company will need to work more in terms of how to communicate
this vision to the world.
Tokoro: Last year, the Company began dialogues with various
industries and companies involved in the use and production ofcopper. We understand that the ideas presented in the Sustainable Copper Vision and the related measures have been received very favorably by those whom the Company has met. JX
Metals has also partnered with several companies and universities to promote resource recycling and decarbonization. It will
be important to continue this kind of direct dialogue through themedia and other channels to communicate the message widely
throughout the world.
Itoh: When I look at the Company and other companies, stakeholders ask questions about sustainability, which is an important
issue. But the questions differ entirely depending on the characteristics of the industry or history of the company in question.
This isn’t a bad thing, necessarily, but the ability to communicate
these differences is what makes the true distinction. As a company that handles copper, the Company must encourage every
employee to consider seriously what emphasis the Company
should place on sustainability and the type of values to emphasize in everyday tasks.
Futamiya: I have always believed that a company cannot growwithout the growth of its employees. It’s important to create anenvironment in which everyone enjoys equal opportunities tolearn, regardless of the type of job or specialty. Chairman Murayama mentioned changing the corporate structure. To do sowill require eliminating vertical divisions and fostering cross-organizational understanding. In that sense, I think it would be
effective to create opportunities for employees and executives
to interact, such as an online corporate university.
Kawaguchi: I understand that historically, the Company has
been divided into vertical sections, such as the division between
resources and smelting. I also understand that the Company
recently began to transfer key personnel from one section toanother. In this sense, I think this is a period of trial and error informulating a human resources strategy. But introducing new
ideas by having people of different fields interact and take on
new assignments within the Company will also foster change.
Sakuma: I think as far as being a traditional Company, JX Metals
has been paying particular attention to the issue of human capital. I am not sure if this is sufficient, however. Generally speak-ing, the best way to attract people is to offer a strong compensation package. But ESG and sustainability initiatives should
also be an important element in evaluating a company and an
attractive factor for students and mid-career hires. I hope theCompany continues to make solid efforts to become a companyof choice among employees.
Itoh: When I talk to young students and graduates today, they
are all quick to consider changing jobs. The reason isn’t necessarily that they want to change companies, but more that theywant to expand their own possibilities. To attract and retain
excellent people may require more than considerations of preserving the Company’s organization. For example, serious considerations about the best means to grow employees.
Kawaguchi: Human resources are essential for future growth.
Where we are today is that potential employees have the luxuryof choosing their employer. I believe JX Metals offers a good
benefits package and working environment. But the Company
needs to go one step further and think about becoming a preferred company of choice by employees. Fail to do so, and thehuman capital information disclosed in annual securities reports,
etc., will be form only, rather than truly meaningful. It would bevery powerful if JX Metals Corporation can become a company
offering a clear career and life plan to women in STEM.
Tokoro: The Company needs to communicate its values andcontributions to society to attract female students and otherhuman resources. At the same time, the Company must understand the needs of the individual and have the capability toengage in two-way communications. And to advance further will
require appealing to the other party’s values to elicit change,
which can be tricky.
Murayama: You have made a number of points regarding external communications. Having an internal industry perspective,
we have taken the content of the Sustainable Copper Vision for
granted, failing to make a strong appeal to the public. We wantto continue expanding our activities in the future by involving
various stakeholders, even in more mundane activities.

Expectations of the JX Metals Group
Sakuma: JX Metals has the potential to achieve both carbon
neutrality and economic efficiency in a smooth manner. I hope
to see the Company realize this potential reflected in corporate
value. The Company is a very important part of the supply chain,
as it manufactures about 400,000 tons of copper materials herein Japan. We have high expectations for JX Metals as a com-pany that plays a role in Japan’s economic security.
Itoh: Supply chain is an important keyword. When you look at
the industrial structure overall, the value of providing materials
and intermediate materials is extremely high. Once a seemingly
behind-the-scenes field is in fact the lifeblood of an industry oran economy. The products the Company deals in are symbolicof this factor. At the same time, it is unrealistic to expect expansion solely under the traditional value model of making better
products at lower prices. For example, the world now expects
the ability to offer sustainability and other diverse values. It is aworld of great risk. But I expect JX Metals will be up to the newchallenges ahead.
Kawaguchi: The JX Metals history of taking on various challenges is one reason it is a technology-based company. While
there have naturally been failures, I think the company has ahistory of success for the very reason that failures are allowed.
I hope the Company retains this spirit as it aims to go public,
continuing to be a company where employees work with vitality
and enthusiasm.
Futamiya: I was impressed by the presentations on the Company’s business activities, particularly its efforts to address theissue of abandoned mines. My understanding had been that aclosed mine is a negative legacy that incurs ongoing costs andno positive results. But that understanding results in a lack ofrespect for the past. The Company uses the term positive legacy, and I have been impressed by the attitude of pursuing
modern values while respecting past efforts. When we talk about
environmental issues today, we tend to focus on climate change.
We lag behind when it comes to biodiversity, but I have highexpectations for the Company’s efforts to utilize its positive
legacy to transform itself into green infrastructure.
Tokoro: Society increasingly demands that the materials industry fulfill its expected role, and I feel this is a great opportunity
for the Company. I hope to see JX metals become more andmore visible in the public eye as a leading company in the materials industry. While there may be some hesitation in standingout due to unexpected consequences, I hope the Company
sees the opportunity of stepping up and becoming a globally
influential company.
Murayama: Thank you all for your valuable comments today.
It is always our policy to welcome frank opinions at Board meetings, and I believe this is the most effective way to manage theboard. Thank you for your continued support.

Sustainability Report 2023 24

2050
Section 2

2040

Value Creation Strategy

Value Creation Model

The JX Metals Group
Long-Term Vision 2040

Medium-Term Management Plan

2023

The JX Metals Group works to identify and recognize the social issues calling for resolution by JX,
and seeks to promote a value creation model in growing sustainably and resolving social issues.

2030

2025

Contribute to creating a sustainable society
as a global leader ofsemiconductor and ICT materials

JX Metals Value Creation

INPUTS (FY2022)

BUSINESSES
Promoting Open Innovation

Sputtering Target for Semiconductors

Total assets

1,859.2 billion yen

OUTCOMES
Global Market Share

Technology Development, Quality Improvement,
Productivity Improvement, Stable Supply

Approx.

60%

Manufacturing Capital
Added Value inTechnology

No. of sites
Japan: 33 overseas: 38

Intellectual Capital

Added Value of BaseBusiness Products

Treated Rolled Copper Foil for
Flexible Printed Circuit Board (FPC)

Added Value of Focus
Business Products
Special Feature

Global Market ShareApprox.

P27

80%

R&D expenses

13,573 million yen

Global Market Share*

Consolidated employees
Approx.

10,759(as of March 31, 2023)

Basic Materials Segment
Social/Relationship Capital

2 sitesNatural Capital

High-Purity Tantalum Powder

Added Valuein the Environment

Copper Mark* Certificationacquisition

Resource Recycling
Sustainable Copper Vision
Special Feature 2

P33

30%

Semiconductor Materials
Segment
ICT Materials Segment

Global Market Share*

Approx.

Decarbonization
Net Zero FY2050
Materiality 1

50%

P53

Energy consumption

13,157 TJ

Working With External Partners

Electrolytic Copper Production Capacity
AnnualApprox.

450,000

Key Social Trends•Expanding needs
for advanced materials

tons•Global acceleration•Intensifying mineral resourcein addressing climate change
shortages/depletion

Projected Operating
Profit in 2040
Focus Businesses

200.0 billion yen
Base Businesses

50.0 billion yen
Social and Environmental Value

Indium Phosphide Compound
Semiconductor Substrates

Human Capital

Economic Value• Advanced materials drive IoT andAI, contributing to remote
medicine, the spread of educationin developing countries, and otherareas• Expansion of powder technologies
broadens the scope of 3D printerapplications to achieve resource
conservation• Conservation of natural resources
and the natural environment byeffectively using urban mines
through technological innovation inrecycling

IMPACTSA Sustainable Society That Enables Both Digitizationand Environmental Conservation

Financial Capital

OUTPUTS*Company estimate as of October 31, 2023

25 JX Metals Corporation

Sustainability Report 2023 26

Section 2 Value Creation Strategy

Two Mainstay Products Supporting Society at its Very Roots
Sputtering Target for Semiconductors
Business Model Supported by Strong Relationships With
Semiconductor Manufacturing Equipment Manufacturers (SME
Manufacturers)

SpecialFeature1

Contributing to Sustainable Societies
Through Advanced Materials

We offer a variety of sputtering targets for copper, tantalum, titanium, tungsten, cobalt, and more. We produce high-quality products in a stable manner using high purity and other advanced technologies cultivated throughour business activities over many years.

Main Products

Primary Applications

Sputtering target for
semiconductors

Semiconductors(logic, memory, etc.)

Global market share:%
Approximately

60

Semiconductor Target Product Business Model
Form relationships with manufacturers

IT, mobility, healthcare, energy, construction, and various other industries use digital data to create sustainable societies.

Our Strengths Supporting Strong
Relationships

Secure product quality meeting the needs
for next-generation materials

The need for advanced materials in these fields will only expand in the future. In addition, rising geopolitical risks have

● Detailed support for SME

manufacturers
・ Facilitates materials
proposals and development
ahead of competitors

SME
manufacturers

Advance development

accelerated the development of renewable energy and storage batteries. Against this backdrop, the JX Metals Group aims
to contribute to developing a sustainable society through advanced materials.

Supply semiconductor
manufacturing equipment

MissionVisionBy pivoting from an equipment industry company to a technology-based company, we will contributeto the creation of a sustainable society as a leader in semiconductor and ICT materials

Position Focus Businesses as the core of our growth strategy● Supply of high-quality products

JX Metals● Build an appropriate structure for Base Businesses, regardless of business scale, to support the growth of

Focus Businesses● Position copper and minor metals indispensable to semiconductor and ICT materials as core domains

Develop Niche Top Products in Line With Next-Generation Trends
The JX Metals Group pursues the development of niche top in line with next-generation trends, leveraging a robust R&D structure andelemental technologies cultivated over more than 100 years since our founding. We also endeavor to identify new market needs basedon strong relationships with customers.

Sources of New Product Development
Capabilities
Strong R&D Structure:
Number of Patents Held

Major Product Lines in Focus Businesses
186

100
FY2013

New Product Development

Sputtering target for
semiconductors

Treated Rolled
Copper Foil

Copper Alloy
StripsHigh-Purity Tantalum
Powderproduction in line with needs
・New factory launch

Secure product quality meetingthe needs for next-generationmaterials

Semiconductor
manufacturers

Treated Rolled Copper Foil
Strengthening Relationships With End Users Through a Market
Development Approach
Treated rolled copper foil is used in flexible printed circuit boards (FPC). This
copper foil is a wiring material that can be bent to connect components
inside smartphones, contributing to miniaturization and longer life. We secured our position as a 1st vendor, maintaining a competitive advantage
through a market development approach that allows us to launch productsahead of competitors by identifying development needs quickly based onstrong relationships with end users.

Main Products

Primary Applications

Treated rolled copper
foil

FPC (flexible printed
circuit boards)

Global market share:
Approximately 80%

Market Development Approach
FY2022

Our Approach・Identify development needs at an early stage through strong
relationships with end users, proposing materials directly to end users

Elemental technologies cultivated overmore than 100 years since our founding● High purity, surface control, composition,

analytical evaluation, etc.
● Technology synergies with Group companies(Toho Titanium, TANIOBIS, etc.)

Identifying new market needs basedon strong relationships with existingcustomers

27 JX Metals Corporation● Support for flexible mass

Advance development

Products Expected to Become Next-Generation Profit Pillars
Crystal and Photonics Materials
InP Wafer

CdZnTeSubstrate

Next-Generation
Semiconductor Materials
Semiconductor precursor
raw materials

Smartphone manufacturers

Energy Materials
Cathode materials for fullysolid-state batteries

CCL*, FPC manufacturers
JX Metals*Copper clad laminate

Customer
Manufacturers ofwearable devices,vehicles, etc.

Sustainability Report 2023 28

Section 2 Value Creation Strategy
Special Feature 1 Contributing to Sustainable Societies Through Advanced Materials

Third Pillar of Profits Supporting Business Area Expansion, Future Society
Crystal Materials
The spread of the 5th generation mobile communication system(5G) is expected to usher in an advanced digital society in which
everything around us is connected to the network. We expect
the market for InP Wafer used in data centers and CdZnTe

substrates used in radiation and infrared detection applications
to expand further in the future. The JX Metals Group pursues
activities to create a product line that will become a third pillar
beside our sputtering target for semiconductors and treatedrolled copper foil.

Initiatives to Achieve Our Vision
In anticipation of future growth in demand for semiconductor and ICT materials, the Group is expanding production
capacity actively in Japan and overseas. Hitachinaka City, Ibaraki Prefecture, is the center of this expansion.

Construction of the New Hitachinaka Factory (Tentative Name)

Crystal Materials Business
Mainstay Products

Primary Applications

Primary End-Use Cases

InP
Substrate

Light-receiving andemitting devices

Datacenters

Near-infrared sensors

Wearable devices

Radiation sensor elements

CT scanners

CdZnTe Substrate

Hitachinaka City

Rendering of the new factory in Hitachinaka

Infrared sensor
elements

Weather satellites,
astronomical telescopes

InP Substrate Market Forecast(Millions of dollars)

Demand for InP substrates, a crystal material we sell, is increasing for use in data
centers and wearable devices. The market is expected to grow at an annual rate
in excess of 16% between fiscal 2021
and fiscal 2027.

300

200

100

0

2021

2022

2023

2024

2025

2026

2027

In March 2022, we acquired a large site in Hitachinaka City,
Ibaraki Prefecture, launching construction of the Hitachinaka New Plant (tentative name), which will serve as our new
central base. In addition to growth areas such as sputteringtargets for semiconductors and treated rolled copper foil,
the new factory will be responsible for advanced materials
production and other new businesses, looking further
ahead beyond 5th-generation mobile communication systems (5G).
We held a groundbreaking ceremony in January 2023
attended by Ibaraki Prefecture Vice Governor Yokoyama
Yukinari, Hitachinaka City Mayor Ohtani Akira, and manyother local well-known persons. The new factory is scheduled to begin operations in fiscal 2025, eventually employing
more than 500 people, which is highly anticipated to contribute to the development of the local economy. In addition
to achieving the Group vision, we aim to make the factory
suitable for playing a part in increasing the presence of
Ibaraki Prefecture and Hitachinaka City as a global supply
base for advanced materials.

Commemorative photo at the groundbreaking ceremony

Overview of the new factory in Hitachinaka
Location
Area

Shinko-Cho, Hitachinaka City, Ibaraki Prefecture
240,000m²

Forecast

Comprehensive Cooperation Agreement With
Hitachinaka City

Source: InP 2022 Market and Technology Report, YOLE Intelligence

Major Initiatives in the Current Medium-Term Management Plan
● Strengthen the crystal materials business via new● Search for new applications such as defense anddivision (by FY2025)● Expand InP substrate production capacity

medical areas for existing products and expand into
related businesses● Develop new products→Expansion at the Isohara Works and consideration of new
factory construction● CdZnTe substrates with larger size and higher quality

29 JX Metals Corporation

In January 2023, we signed a comprehensive cooperationagreement with Hitachinaka City in connection with theconstruction of a new factory. Our hope is to serve as amember of the local community, sharing in the developmentof Hitachinaka City.
In addition to job creation and industrial promotion
through the new factory, we intend to support various activities for the future of the community through a 100 million

yen donation leveraging the corporate version of the hometown tax donation program. These activities include support
for the operation of a community center in the Ajigaura
district, where the new plant is located, as well as programs
to foster the next generation.
Reference

Regional Cooperation in Ibaraki Prefecture⇒ P92

Sustainability Report 2023 30

Section 2 Value Creation Strategy
Special Feature 1 Contributing to Sustainable Societies Through Advanced Materials

Construction of New Factories in Hitachi CityJX Metals was founded in Hitachi City, Ibaraki Prefecture. Here, we are building two newfactories to manufacture sputtering targets for semiconductors and treated rolled copper
foil.
Hitachi City, Ibaraki Prefecture, is home to our main base, Hitachi Works, where we
engage in a variety of businesses that include the manufacture and processing of copperand other nonferrous metal materials, research and development, and recycling, which isessential for protecting the environment.

Construction of a New Factory in Arizona U.S.

Hitachi City

Construction of the New Hitachi Factory(Tentative Name)
Construction of the new Hitachi Factory, which will
manufacture treated rolled copper foil, is underway atan investment of 16 billion yen in the Shirogane district
within Hitachi Works. Currently, we perform the final
surface treatment for treated rolled copper foil at
Hitachi Works. However, the rolling process is carriedout solely at Kurami Works (Takaza-Gun, Kanagawa
Prefecture). By installing a production line for the
rolling process at the new factory, we expect toincrease production capacity by 25% compared tofiscal 2020 and strengthen our BCP* structure.
*BCP: Business continuity planning

31 JX Metals Corporation

Mesa, Arizona

Rendering of the new factory

New Hitachi Factory

Overview of the New Hitachi Factory
Location

Shirogane-Cho, Hitachi City, Ibaraki Prefecture

Site Area

8,001.77m²

Products

Treated rolled copper foil

Employees

20-25 (plan)

Operation
LaunchFY2024 (plan)

Sandra Watson, Arizona Commerce Authority
president and CEOJohn Giles, mayor of Mesa

Kuwabara Masago, president & CEO, JX Metals USA, Inc.

Establishing a Structure to Promote
Innovation

New Hitachi-kita Factory (Tentative Name)
The new Hitachi-kita Factory will manufacture sputtering targets for semiconductors. Now under construction, the factory represents a 14 billion yen investment located in an industrial park in the northernpart of Hitachi City.
In December 2020, we announced a plan to increase production capacity for sputtering targets forsemiconductors by 30% compared with fiscal 2020.
As the semiconductor industry continues to growbeyond expectations, we announced a plan to invest
a total of 32 billion yen and increase production significantly by 80% compared with fiscal 2020. The
construction of the new Hitachi-kita Factory is part ofthis effort. This factory will be responsible for melting
and rolling processes of sputtering targets forsemiconductors.

JX Nippon Mining & Metals USA, Inc. is located in Arizona, thecenter of the semiconductor industry in the U.S., and is responsible for the downstream processing of sputtering targets forsemiconductors. Under this business, we purchased land of
260,000m² (six times the current land used) and began construction of a new factory. In October 2022, we held a groundbreaking ceremony at the planned site of the new factory inMesa. The ceremony was attended by many people, including
government officials and local media.
By securing a sufficiently large site in Arizona, an area ofgrowing concentration in the semiconductor industry, we plan
to expand production capacity for sputtering targets for semiconductors further and meet customer needs in a flexible manner. First, we plan to construct new manufacturing facilities
scheduled to start operations in or after fiscal 2024. The newfactory will not only be a base for sputtering targets for semiconductors, but also a site for new business development,
making it a center for advanced business fields in North
America.

Pursuing innovation in nonferrous metals, the JX Metals Group
strives to co-create new business with partners across a wide rangeof fields, focusing on advanced materials and highly functional andmultifunctional materials. As part of our efforts, we concluded acomprehensive cooperation agreement with the Ibaraki University
College of Engineering in July 2023.
Our main objective in this agreement is to develop human reNew Hitachi-kita Factorysources who will be active in Ibaraki Prefecture and contribute to
the development of the region. We plan to expand the number ofOverview of the New Hitachi-Kita Factory
Location

Sunazawa-Cho, Hitachi City, Ibaraki Prefecture

Site Area

23,348.04m²

Products

Sputtering targets for semiconductors

Employees

30-40 (plan)

Operation
LaunchFY2024 (plan)

Installed
Equipment

Melting and rolling equipment for sputtering targets forsemiconductors (plan)

students hired from the university by establishing a new course for
Ibaraki University students in our internship program. We also plan
to conduct tours for College of Engineering faculty members to
explore the possibility of joint research. Through the framework ofthis comprehensive cooperation agreement, we will pursue theCooperation agreement signing ceremony

See the following pages for more information on other initiatives

development and hiring of the next generation of engineering personnel and potential joint research projects for further innovation.

Reference

Pursuing Open Innovation ⇒ P70-71
Regional Cooperation in Ibaraki Prefecture⇒ P92

Sustainability Report 2023 32

Section 2 Value Creation Strategy

What is Sustainable Copper?
Projected Future Demand by Source
Meeting increasing demand for copper requires astable supply of copper ore and recycled raw
materials.

(Refined Copper, Units: Millions of tons)

Actual demand

51

SpecialFeature2

Sustainable Copper Vision
JX Metals Vision for Sustainable Copper

While demand for copper will continue to grow over the longterm, the supply of copper ore and recycled raw materials fromexisting mines is limited, and the supply-demand balance forcopper is likely to be very unstable. This delicate balance is why
copper ore and recycled raw materials will be essential in meeting the demand for copper, without which the world cannot
achieve decarbonization.

Recycled raw materials
Copper ore from existing mines

Forecast demand

60

38

37

40

41

Shortfall

31
23

25
This shortfall in supply must becovered by securing copper ore
through the wider use of recycled raw
materials, improved utilization rates ofexisting mines, and the developmentof new mines.

20

0
2010

15

46

20

25

30

35

40

45

2050

*Compiled by JX Metals based on IHS Global Insights, MineSpans

Green Hybrid Smelting Achieves Dual Missions
In August 2022, the JX Metals Group formulated our Sustainable Copper Vision.
This vision reflects our recognition that copper is an essential material for achieving carbon neutrality and describes our

Achieving Dual Missions

policy for the supply and ongoing evolution of sustainable copper.
We will continue pursuing Green Enabling Partnerships, which are collaborations and cooperation with partners involved in
the supply and use of copper, for the development and wider dissemination of this vision.

Building a stable supply
structure which supports
increasing demand

Establishment of production andsupply chain focusing on ESG,
such as decarbonization andcircular economy

We offer copper products using Green Hybrid Smelting. Bothcopper concentrates and scrap can be used as raw materials.
The heat generated by the copper concentrates itself can beused to melt recycled materials, making fossil fuels virtually
unnecessary.

Green Hybrid Smelting

Green Hybrid Smelting has been selected as one of
the 26 most noteworthy examples of Japan’s circular
economy initiatives in Case Studies (2022) publishedby the Japan Partnership for Circular Economy, which
was established by the Ministry of the Environment,
the Ministry of Economy, Trade and Industry, andKeidanren.

Green Hybrid Smelting Combines
the Use of Copper Concentrates and Scrap

Green Hybrid Smelting Initiatives

Low CO2 melting and separation using heatfrom the combustion of sulfur content, etc.

Copper is an essential material for achieving carbon neutrality; therefore, copper suppliers and users are regarded as Green Enablers.
Copper concentrates

Changes in power

Upstream generation mix
Power generation
mix reliant mainly on
fossil fuels such ascoal and gas

Emergence andexpansion toward
renewable energy
sources such as
wind and solar
power

of electricity
Mid-stream Expansion
transmission and distribution
Power supply
through centralized
transmission anddistribution systemsof electricity

Transition to
decentralized
transmission anddistribution
systems

in electric
Downstream Transformations
power usage
Vehicles and supply
chains designed
based on using
internal combustion
engines as anenergy source

Conversion ofenergy sources inconnection with the
spread ofenvironmental
friendly vehicles(EVs, FCVs*, etc.)

4x

Recycled raw
materials

2023

Renewable energy requires
about four times more copper
than fossil fuels per MW ofpower generation capacity

2040(Target)Recycling Ratio:50%

JX Metals Copper Products• Fossil fuels: Up to 1 ton/MW• Renewable energy: Up to 4 tons/MW

Four Key Initiatives to Develop and Popularize Sustainable Copper

2x

Decentralized network
requires about twice as muchcopper as compared to theconventional supply grid1

Reduce CFP

2

Increase Recycling
Ratios3

Promote Responsible
Procurement and Other
Measures

4

Form Green Enabling
Partnerships• Centralized: Up to 10 tons/km• Decentralized: Up to 20 tons/km

4xElectric vehicles incorporate
and use about four times
more copper than internal
combustion vehicles• Internal combustion engine vehicles: 24 kg/vehicle• Electric vehicles: 94 kg/vehicle

Reduce CFP in Copper
concentrates mining and thetransportation value chain• Convert construction equipment used inmines to electric power• Use electricity derived from renewablesources• Improve efficiencies and optimize
transportation, etc.

Develop technologies to increase
the ratio of recycled raw materials
for copper products and bolster
raw materials collection systems

Engage in a wide range of ESG
measures, including sustainablesourcing, and certificationacquisition• Develop technologies to increase theratio of recycled raw materials• Pursue measures that consider andencourage global environmental
conservation, human rights, andcontributions to local communities• Expand facility capacity to increase
recycled raw materials collection, etc.

• Acquire Copper Mark and other certifications
that meet ESG standards set by theInternational Copper Association (ICA)

Evolve and gain wider use ofsustainable copper• Form partnerships with companies thatwork together to promote sustainablecopper, and accelerate the transition to
decarbonized and circular economies• Engage in product and scrap collection,
raw materials reuse, and joint technology
development with partners, etc.

*Fuel cell vehicles

33 JX Metals Corporation

Sustainability Report 2023 34

Section 2 Value Creation Strategy
Special Feature 2 Sustainable Copper Vision

Four Key Initiatives to Develop and Disseminate
Sustainable Copper
1

4

Reduce CFP■ Third-Party Assurance for Electrolytic Copper CFP

We form Green Enabling Partnerships with companies who work together to promote sustainable copper. Through these partnerships,
we accelerate the transition to decarbonized, circular economies as well as engage in product and scrap collection, raw materials
reuse, and joint technology development.

The JX Metals Group calculates electrolytic copper CFP produced at each of our facilities. We became
the first copper smelter in Japan to obtain third-party assurance for the results of our calculations.
Under this initiative, we calculated the cradle to gate greenhouse gas emissions (raw materials
procurement to product shipment) per kilogram of electrolytic copper produced at the Saganoseki
Smelter & Refinery and Hitachi Works in fiscal 2021. Our calculations were in accordance with the GHG
Protocol, which is an international calculation and reporting standard. Our results were certified by DNVBusiness Assurance Japan K.K., a third-party certification organization.
We plan to disclose the calculation results to our electrolytic copper customers in the future. We
plan to discuss the results of our calculations with companies participating in the Green Enabling Partnership, addressing the low CFP (calculated using the mass balance method*), the high recycling ratio,
and other significant environmental values associated with the supply of electrolytic copper.
*Mass balance method: A method in which a portion of a product is considered to possess properties derived from those of the raw material,
depending on the input ratio of raw materials with said properties.

Form Green Enabling Partnerships

Green Enabling Partnerships Concept

Spiral Model With Partner Companies

Achieving Carbon Neutrality
Base Businesses
Improve recycling
ratiosGain Wider Adoption andExpand Green Enabling Partnership

Reduce costs
JX Metals Group Scope of Action
Energy Conservation,
Renewable Energy,
Energy Conversion, Etc.

Third-party certification❶ Metal Consumers
Nonferrous
Recyclers❷ Supply Chain Operators❸ Universities and Local

Governments
Organizations Supporting
Circular Societies

Lateral Cooperation
Among Related Industries
Government and Legislation
Consumers/Individuals

Increase Recycling Ratios

Our flash smelting furnace process not onlyuses the reaction heat of the raw copper
concentrates efficiently to dissolve raw materials, but also uses the excess reaction
heat to melt the recycled raw material, eliminating the need for fossil fuels or other resources. We pursue the optimal combination of copper ore and recycled materials
through our Green Hybrid Smelting toachieve sustainable production of copper.
Here, we aim to evolve Green Hybrid Smelting that uses 50% or more recycled raw
materials (input ratio of raw materials orcontent ratio in products) by 2040. The table on the right shows specific issues andmeasures.

3

Green Hybrid Smelting Roadmap

Recycled
Raw Materials

50%
Recycled
Raw Materials

25%• Expand pre-processing technology for recycled
raw materials (AI sorting, crushing, drying)• Treat recycled raw materials via roasting• Develop and use new pretreatment
technologies for recycled raw materials• Introduce carbon-free heat sources• Optimize smelting process(hydrogen, etc.) into the smelting process(impurity control, heat recovery technology)[Technology
Development]• Establish a cooperative system with recyclers• Expand capacity for receiving, sampling, analysis, and evaluation• Conduct closed-loop recycling with partner companies[Raw Materials
Collection]• Visualize CFP and cooperate with logistics partners[Other]2023■ Acquisition of The Copper MarkThe Saganoseki Smelter & Refinery and Hitachi Works are engaged in responsible production activities. These facilities were
the first in Japan to receive The Copper Mark, a highly credible
assurance framework that demonstrates the copper industry’s
P0037

Unique Identifier

PRESENTED TOSAGANOSEKI SMELTER& REFINERY
for meeting the requirements for responsible production practicesof the Copper Mark. Valid for the period of
15 December 2022

to14 December 2025

Executive Director

35 JX Metals Corporation

Reduce CFP

Expand sustainable
materials
procurement
WIN-WIN

JX Metals

Focus Businesses

2030

2040

❶ Partnership With Intel❷ Partnership With BHP

In August 2023, we established a Green Enabling Partnershipwith Intel Corporation, a leading company in the semiconductor
industry and an advanced company in sustainability. We supply
products to Intel, receiving the 2023 EPIC Distinguished SupplierAward. With this new partnership, our relationship with Intel has
become even stronger. Under the partnership, we will continue
to work toward the evolution and dissemination of sustainablecopper.
In terms of increasing recycling ratios, we work with Intel toensure the effective use of copper resources. Now, we plan to
explore the potential of recycling other copper-related materials
used in the manufacture of semiconductors. In terms of promoting responsible procurement and other initiatives, our two companies intend to continue efforts to build a responsible andsustainable copper supply chain.

In July 2023, we formed a Green Enabling Partnership with BHP,a leading global resources company. Under this partnership, we
will continue to develop a responsible copper supply chain bystrengthening traceability and certification of origin for raw materials, pursuing ongoing efforts to develop a responsible copper
supply chain. We will work with BHP to reduce GHG emissions
from the marine transportation of copper concentrates andsulfuric acid and shareknowledge regarding the
calculation of electrolytic
copper CFP.

Promote Responsible Procurement and Other Measures

Saganoseki Smelter & Refinery, JX Metals
Smelting Co., Ltd.

Increase scrap
collection
Evolve Green
Hybrid Smelting

Improve traceability

Copper customers

2

Scrap supply

Reduce Copper CFP

The Copper Mark Certificationcommitment to the green energy transition.
The Copper Mark is a certification program established in2019 requiring compliance with 32 standards, including standards for the environment, human rights, community, and governance. Both of the business sites will continue to undergo
evaluations based on the various standards established under
The Copper Mark.
In January 2023, the Caserones Copper Mine (Chile), in
which we hold a partial interest, began the process for obtaining
The Copper Mark. As international demands for ESG initiatives
increase, we will continue efforts to strengthen the competitiveness of sustainable businesses.

The EPIC Distinguished Supplier Award recognizes suppliers that demonstrate outstanding performance across all evaluation criteria. To be eligible for the award, suppliers mustachieve high goals that meet expectations and score 80% or higher in performance
evaluations throughout the year.

❸P artnership With Waseda University
In January 2023, we signed an agreement with Waseda University to establish an endowed chair program* that contributes tocarbon neutrality, the circular economy, and our Sustainable
Copper Vision, in particular. Waseda University published acarbon neutrality declaration in 2021 and the university aims toachieve net zero CO2 emissions at each of its campuses by2032, which is the 150th anniversary of its founding. Under theterms of the agreement, JX Metals and Waseda University will
collaborate in the development of highly specialized humanresources and the pursuitof basic research related
to sustainable copper
smelting technology.
*Endowed chair program: A program
under which an endowment fund isestablished using new donations
from outside a university, with thefunds used to hire faculty members.

Sustainability Report 2023 36

Section 2 Value Creation Strategy

Attracting and Hiring TalentCore HR Values
The following definitions represent the type ofhuman resources we believe will create newand added value.

SpecialFeature3

Human Capital Management

Human resources who lead innovation by
understanding diversity, accepting diversity, andworking in collaboration with stakeholders ofvarious circumstances

Aiming to be the Global Leader in Advanced Materials
Improving human capital will be essential if we are to contribute to the development and innovation of society as a global leader inadvanced materials. The global competitive environment for metal materials is changing rapidly, particularly for semiconductor and
ICT materials and others in which we do business. To respond to these changes, we must employ human resources from diverse
backgrounds who strive to maximize their abilities, think independently, and embrace change.

The JX Metals Group Approach

New Graduates

New Graduates

Mid-Career

4

150

100

Technical Candidate Recruitment for FY2020 to FY2022

281Employees

50

0

FY2020

FY2021

Technical

ESG

University Graduates
Technical College Graduates
Mid-Career

Technical

37 JX Metals Corporation

Komatsuzaki Kan

6:

200

Administrative

Ratio of Career-Track Employees in Entry-Level Positions(persons)

Administrative

DNA

Develop

Deliver
Technology

5

Recruitment Results (JX Metals Corporation)

FY2022

We hire technical candidates actively to strengthen our technological development and production site capabilities, which represent
the roots of our competitiveness. Pursuing these human resources measures is helping us transform into a technology-based
company.

Executing Growth
Investments

Hire

Mid-Career

mid-career hires. Over the past three years, the ratio of new
graduates to career hires has been approximately fifty-fifty. We
are hiring an increasing number of university graduates, technical college graduates, and mid-career hires, ensuring quality,
quantity, and diversity in our workforce. This increase has led tothe development of an open-minded corporate culture thatseeks to share new knowledge, technologies, and ideas.

Technical

Diversity

5:■ Recruiting Technical Candidates

Transforming Into a TechnologyBased Company
Creating Social Value

We hire a wide range of outstanding human resources bystrengthening the organization in charge of recruitment in the
Human Resources Department and diversifying recruitment
channels. We recruit technical candidates among new graduates, including technical college students, as well as globallyoriented candidates from Japan and overseas who have experience studying abroad. We are also extending our reach for
Recruitment Ratio for FY2020 to FY2022

JX Metals Corporation
Senior Executive Officer

Contributing to Social Development and Innovation as a
Global Leader in Advanced Materials■ Fostering Diverse Values

Human resources who envision an ideal
future in response to changes in theenvironment, and who are eager to act inachieving that vision

Administrative

Since announcing our long-term vision in 2019, we have pursued measures to transform ourselves into a technology-based company. Our Medium-Term Management Plan for Fiscal 2023
to 2025 calls for measures under a policy of steady investment in growth, which is essential fortransforming into a technology-based company. At the same time, our plan describes how wecreate value through ESG activities, paving the way toward maximizing corporate value. We know
the power of people is indispensable, and we consider maximizing the motivation and capabilitiesof our people to be an important management issue.
Under a corporate culture of mutual respect and friendly competition, we respect the ingenuity
and ideas of every employee toward achieving our long-term vision. We believe the growth of
our people is linked to the sustainable growth of the company. We will also strive to hire anddevelop human resources who create added value while respecting the Company’s DNA. Morethan ever before, we intend to proactively build an organizational structure that encourages diverse human resources to maximize their abilities.

Human resources who take a sense ofownership, think, act,and embrace on their own

Recruiting New Graduates● We hire people with interests and abilities across a wide
range of college majors, not limited to those who majoredin metals at university (graduate school)● We are extending recruitment activities to all applicants,
not limiting ourselves strictly to applicants recommended
by the schools● We are expanding the employment of technical college
students

Recruiting Mid-Career Professionals● We hire for technical expertise in positions such as new
business planning, technology development, and others inwhich we lack expertise● We hire for key positions above managerial staff levels● We recruit from diverse industries (automotive, electric,chemical, university, etc.)

Sustainability Report 2023 38

Section 2 Value Creation Strategy
Special Feature 3 Human Capital Management■ Policies

Strengthening Human Resources Development
Human Resources Development Policy
Providing opportunities for independent and self-motivated growth according to individual needs● We implement uniform training, including training in the skills we expect of human resources. We provide flexible
training opportunities according to the needs of the individual employee (role expectations, competencies,
aspirations, desired career, etc.) to encourage independent and self-motivated growth.
Emphasizing practical human resources development● We place work experience at the center of employee development, fostering human resources throughcomprehensive personnel policies, including performance evaluations and education. In particular, we offer
practical training in different environments to help employees develop a broad perspective, a resilient mentality,
and a mindset of thinking and acting independently.
Developing human resources in a corporate culture that accepts diversity and encourages challenge● We foster managers and a workplace culture that accepts diversity and encourages employees to take onchallenges to develop human resources in line with our expectations.

Training Program for Young Employees

Training for Operations Managers

With a view to early promotion to managerial positions, we

To improve on-site capabilities, which is an important issue

are speeding up the pace of focusing on training through year

for us today, we provide training for senior chiefs and chiefs—

three of employment. Our aim here is to instill the Company’s DNA while

key personnel at production sites—to develop the skills and acquire thefostering the basic skills and mindset to act independently and take on

knowledge necessary for on-site management. While deepening an

challenges. In this context, we provide follow-up training six months after

understanding of the Company’s current management situation and is-an employee joins the Company, providing an opportunity for reflection,sues, we also foster leadership skills to face challenges as a team, as

raising awareness of their current situation and expected roles, and fol-well as personal skills and mindsets for developing and following up withlowing up to foster a positive toward taking on challenges through thesubordinates.

acquisition of organizational skills. We also provide training for leaders todevelop the ability to solve problems for which there are no clear answers

Career Educationand to foster thinking from a company-wide perspective at stages before

We offer age-specific career education as an opportunity for

managerial levels.

employees to think independently about their future life plans
and careers. Considerations include what the individual wants to accom-

Training for Managers

plish at the Company, their future roles, and what skills they should ac-

In conjunction with the revised human resources system forquire. Lectures by career counselors and in-house systems for balancing

managers, we improved management training to instill alife events and work help employees build independent careers while

management mindset and build management skills. Newly promoted

alleviating concerns about the future.

manager training includes panel discussions with vice presidents, allow-

Engaging in the systematic development of target talent* to support continuous growth● We develop human resources systematically (select, assign, and train) to become management candidates,
global business operations leaders, new business developers, etc. By enhancing educational opportunities for
specialists, we develop human resources capable of supporting technology-based businesses.
● We enhance education for managers and on-site leaders to strengthen their ability to respond to on-sitesituations.
*Target talent: Specific employees identified for individual training.

passive structure to one offering flexible and active education.
Our vision is to become a technology-based company, expanding our existing businesses and creating new businesses
on a global scale. To achieve this vision, it is critical that wedevelop management candidates who can guide businesses,
global personnel who can take charge of overseas businessdevelopment, specialists who can lead the Company with expert
knowledge, and personnel who can improve our competitiveness in the field. We are building and improving training programs for selected individuals who demonstrate this potential.

Historically, human resource development at JX Metals has been
under a training system based on rank-specific education andon-the-job training (OJT) for newly graduated employees. However, we are hiring an increasing number of mid-career professionals every year, and employees from various backgrounds
play active roles in the Company. In addition, we are offering
greater diversity in career paths, including earlier promotion to
manager positions and transfers across job categories. Given
this situation, we revised our training system from a uniform,

General Staff

Career-Track, Regional Career-Track (by Level, Selected Individuals Only)
Electiveences of other managers. Our intent here is to teach an understandingof management attitudes and thinking from a company-wide perspective.

■ Global Human Resources Development

Global

RankSpecificSelected

MidCareerSelected

SelfDevelopment

Specialist,
Other

program).
offering Udemy Business, in fiscal 2023. Udemy Business is an online

global business awareness, but also develop the toughness and confi-

video learning service for study without restrictions on location or time.

dence to dive into different environments and cultivate various skills,

With access to a variety of courses and educational materials, employees

knowledge, and mindsets.

have more opportunities to acquire diverse knowledge and skills.

Overseas Study
We select eligible individuals to study abroad at
graduate schools to obtain degrees or at businessschools to obtain MBA degrees, strengthening theirexpertise and management skills.

Comprehensive Online Language Learning
As part of our efforts to develop human resources for global
New employee training

Training for newly promoted managers

global conversation classes, and ability assessment tests to provide
practical language learning.

Job-Specific Training

Study Abroadat the Head Office

ESG Safety Quality Control Compliance, etc.

Online Video Learning Service

Self-Innovation Support

Career Education by Age Group

SeniorChiefsLearning
Opportunities
Across Locations(Next-Generation
Leaders)

39 JX Metals Corporation

Specialists

To create an environment that further facilitates learning, we began

language skills, cross-cultural understanding, relationship building, ande-learning in English, Chinese, German, and other languages, online

ChiefsManagement

apply to any eligible external training program. On completing the program, half of the expenses will be subsidized (up to 500,000 yen perguage online learning system, in fiscal 2023. The system combines

MBA Programs in Japan

New Employees

Domestic University Study

Follow-Up

Overseas
Study A

Year 2

Overseas Study B

Young
Employees

Overseas Training(Practical)

Year 3

Cross-Border Studies

LeaderShort-Term Language Training

Leader Level 3
Experienced
Workers

Comprehensive Online Language Learning

Newly Promoted
Managers

Pre-Assignment Education (Overseas)

New Section
ManagerInterpersonal Skills

New
Managers

Intermediate-Level
Managers

Conceptualization and Technical Skills

MiddleManagers

New General
Managers

Under our Self-Innovation Support program, employees may

We provide overseas training for younger em-

business, we adopted goFLUENT, a comprehensive lanSenior
Managers■ Self-Development Support
Self-Innovation Support and Online Video
Learning Service

Overseas Training
ployees. Our objective is to not only develop■ Creating a New Training System

Rank-Specificing managers to learn about the ideas and specific background experi-

VOICE
Testimonial From an Overseas Study Program Graduate

I studied for my MBA at the Stephen M. Ross School of Business, University of Michigan, as a company-sponsored student under the overseas study program. The Global MBA program, which I attended, isan intensive two-year MBA course compressed into just 14 months. I had many opportunities to talk withpeople of different cultures and values about unfamiliar topics, gaining a new perspective every time.
I went to the U.S. with my wife and three children. I had a difficult time persuading my children to go
back to Japan when it was time to go home, as they had become so fond of the area. The opportunity
turned out to be a wonderful experience for us as a family.
Currently, I am a member of the Structural Reform Team working in the IPO Preparation Office. I work
as hard as possible to demonstrate the leadership skills I learned from my MBA experience.

JX Metals Corporation
Human Resources Department
and IPO Preparation Office

Oshikawa Tomoaki

Sustainability Report 2023 40

Section 2 Value Creation Strategy
Special Feature 3 Human Capital Management

Creating an Environment for Employees to Maximize Their
Abilities■ Revising Our Human Resources System
We began revising our personnel system in stages in fiscal 2021.
Our aim is to transform into a technology-based company bycreating an environment where each employee is aware of hisor her role, respects and encourages each other, and takes onmore challenging tasks in a spirit of friendly competition.

Revision of Human Resources System for Managers
We revised our human resources system to select and foster outstanding employees, regardless of job type, department, or grade. These are employees we believe will manage our businesses from a long-term, company-wide perspective and play a central role in management.
Specifically, we clarified the classification of line managers with subordinates as management personnel. We also
implemented consistent compensation based on the scope of responsibilities and endeavor to promote individuals tomanagerial positions earlier in their careers.

Revision of Human Resources System for Non-Management Employees
We revised our system to strengthen the on-site competitiveness through the appropriate evaluation and compensationof employees who support production sites, secure and develop human resources to support business expansion in
Ibaraki Prefecture, allow diverse human resources, including seniors, to play active roles, etc. Specific measures in ourrevised system are as follows.
1. C larified course classifications between career-track
and general staff positions
After clarifying the roles of each course, we designed thesystem to provide appropriate evaluations and compensation accordingly. We also established a means for employees
to switch from general staff to career-track or regional career-track, depending on their willingness to take on new
challenges. In this way, we support an independent careerdevelopment and foster a corporate culture of embracing
the challenge of change.

Managerial staff
CourseswitchsystemCareertrack

Regional
career-track

CourseswitchsystemGeneralstaff

Courseswitchsystem

2. Established regional career-track position
We established a regional career-track course for the Ibaraki
Prefecture area, where we expect a significant increase inemployees. This course has a defined work area within
Ibaraki Prefecture. In principle, this course will not entailtransfers that require relocation. The course is designed tostrengthen recruitment and business operations in Ibaraki
Prefecture, including I-turns (moving to the prefecture forthe first time) and U-turns (returning to the prefecture).
3. Extension of retirement age
We raised the retirement age from 60 to 65 years for morestable operations at production sites and the passing on oflearned skills. Salary levels will remain at that of employees
aged 60 years. At the same time, we introduced a manager
retirement program at a maximum age of 60 years to provide management opportunities to young and experienced
workers, as well as to revitalize our organization.

Classification: Non-management
CourseClassification

Work Location

Career-track

Domestic andoverseas offices

Manage and develop business and functions
based on the company-wide management
strategy

Regional
career-track

Ibaraki Prefecturebusiness locations*1

Manage and develop businesses and functionsin the area in accordance with the companywide business plan

General staff

Head office andoperating sites*2

Manage and execute the operations of a
specific department at a given businesslocation*1 In principle, there are no transfers involving relocation*2 In principle, there are no transfers out of the prefecture involving relocation

41 JX Metals Corporation

Confirm
intent tocontinue

Job Description

BeforeOctober2022
After
October
2022

Mandatory
retirement

Non-management
employee

Renew contract
yearlyContract
employeeNon-management employee
Mandatory
retirement
Age 58

Age 60Age 65

ColumnEmploying and Retaining People
With Disabilities
We employ and retain people with disabilities in response to their desires to play active roles in society. In September 2020,
our head office began training instructors and improving work environments. In January 2022, we established the Cheerful
Support Office, which consists of members who have mental disabilities (intellectual and developmental). In April 2023, we
made JX Metals Corporate Service Co., Ltd.* a special subsidiary, transferring the Cheerful Support Office to this company toaccelerate improvements in the working environment. In addition, we hold tours of workplaces and meetings to foster a sharedawareness for Group-wide understanding.
*A wholly owned subsidiary of JX Metals

Cheerful Support Office
Between fiscal 2021 and fiscal 2022, we hired six employees with mental disabilities to work in the head office. These
employees sorted and delivered mail, replenished supplies and beverages, and performed other duties. In April 2023, wewelcomed four new employees from a special-needs school and expanded our operations to accommodate the increased
number of members. The office began taking orders for business card production, digitizing paper documents, and generaladministrative work for various departments. We plan to launch a Cheerful Support cleaning team by April 2024 to bring head
office cleaning in-house. Cleaning services are currently performed by an outside contractor.
A company-wide understanding is essential for making these types of initiatives a permanent fixture. All new employees
and new hires at the head office learn about the Cheerful Support work through presentations given by Cheerful Support
Members. Through these efforts, the activities of Cheerful Support Members have become well known among employees,
and the office is receiving many requests for services. The cheerful and loud greetings offered by Cheerful Support Members
bring energy and vitality to the company.

● Community contribution activities
In cooperation with Minato Ward Disabled Persons’ Welfare
Section and Minato Ward Board of Education, Cheerful Support members gave presentations about their efforts to findemployment, etc., to approximately 10,000 teachers andguardians at special-needs schools. In April 2023, the officegave a tour to all first-year students of Eifuku Gakuen, a special-needs school, explaining their work and talking about thesatisfaction of work.

Presentation at the Minato Ward

Workplace tour for Eifuku Gakuen

Agricultural and Welfare Cooperative Project, Uchihara Farms
We established Uchihara Farms as an agricultural and welfare cooperative project in Mito City, Ibaraki Prefecture as an organization under JX Metals Corporate Service Co., Ltd. The farm aims to contribute to social welfare through farming performedby people with disabilities. The farm also aims to contribute to the well-being of Company employees by utilizing agriculture
for employee education and company events. With the cooperation of Nihon Nogyo Jissen Gakuen, the farm leases approximately 7,000m² of land from the organization and employs people with disabilities to farm the land. Harvested vegetables areused in the company cafeteria, provided at various
events, and sold at direct
sales outlets. In addition,
Uchihara Farms serves as
an in-house training facility to promote an understanding of people withdisabilities.
Growing root and otherMembers with disabilities andShipment to a nearby
vegetables on the farm

instructors

direct-sales shop

Sustainability Report 2023 42

Section 2 Value Creation Strategy

The JX Metals Group for the Future Society
Rolled Annealed Copper Electro-deposited
Foil for FPC
Copper Foil for FPC

As a leader in the nonferrous metals industry, our Group supplies nonferrous metal resources, such as copper, minor
metals, and precious metals, as well as advanced materials.
The resources we provide support the richness of society at its very roots, from infrastructure to electronic devices,and drive society’s advancements.

EMI Shielding Filmfor FPC

Flexible Printed
Circuit Board= The JX Metals Group’s advanced materials
Tantalum and Niobium High Purity
Pentachlorides
Metal Chloride

Copper Foil Surface
Treatment for HighFrequency

Ta₂O₅/Nb₂O₅ Powder

Magnetic Material
Sputtering Target

Sputtering Target for
Semiconductors for LSI

Sputtering Target
for Optics

Data Storage/
Processing

EMI Shielding Tapefor COF/COP

Sn-Cu-PETSAW Filter

Sputtering Target
for Transparent Electrodes/Semiconductor

Cable

HDD
Advanced LSI/
MemoryHigh Purity Copper

Ag Bonding Wire

Electroless UBM
Plating Service

Lowα Tin for Soft
Error Reduction

Connecting/Communicating

ECU/Electronic Module

Negative Thermal
Expansion Material

Electro-deposited
Copper Foil for FPC

Via Filling Paste for
Thermal Release

Nb₂O₅ PowderHigh Current
Connector

SIM/SD Card Connector Connector for
Wiring Harnesses

Titanium Copper

PCB Connector

Flexible Printed Circuit Board to Board Connector
Board Connector

Precision Stamping

Floating Connector

USB Type-C

Precision Plating

Energy Generation/
Storage

Surface Treatment
Agent

Titanium Copper Foil

Millimeter-wave Radar/LiDARYAG Ceramics

InP Wafer

Press-Fit Connector

InP Wafer

CameraSputtering Target
for Optics

Corson Alloy

OpticalCommunication

3D Formable Sheetfor Electromagnetic
Shielding
EMI Shielding Tapefor Metal Can

Connector

Display

InP Wafer

Solar Cell

Copper Foil Surface Treatment
for High Frequency
Tantalum Capacitor

Flexible Manufacturing/
Miniaturization

Sensing/Capturing
CdZnTe Substrate

Radiologic Exam

Tantalum Powder

Tantalum Capacitor
Lithium Ion Battery

Optical Sensor
Pressure Sensor
Ta₂O₅/Nb₂O₅ Powder
Sputtering Target for Optics
Magnetic Material
Sputtering Target

LLTO(Ceramics Electrolyte)

Magnetic Sensor

The stable supply of copper, for which demand is
expected to increase in the IoT/AI and decarbonizedsocieties of the future, is an important social mission for the Group.

A Sustainable Supplyof Materials
Electrolytic copper

Copper Sulfides ore

Copper Oxides ore

Electronic Waste

Composite ofMulti Material

Additive Manufacturing

Sn-Cu-PET

Rolled Copper Foil for Negative Current Collector

High Precision Stamping and Plating

Precision Stamping

Titanium Powders

Tantalum and Niobium
Powders

3D Formable Sheet
Metal-Ceramics Composite
for Electromagnetic Shielding

Scrap Copper
Copper Powder

43 JX Metals Corporation

Precision Plating

Sustainability Report 2023 44

Section 2 Value Creation Strategy
Semiconductor Materials Segment

Semiconductor Materials Segment

Thin Film Materials Business

Tantalum and Niobium Business

Employing world-class nonferrous metal manufacturing technologies, we are a supplier of a wide variety of sputtering targets
including targets for semiconductor applications, compound semiconductor materials, high-purity metals, and surface treatments.
These and many other materials and services, provided on a global scale, find use cases in end products such as advanced devices,leading-edge IT equipment, medical instruments, and electric vehicles.

Germany-based Group company TANIOBIS GmbH (hereinafter “TANIOBIS”) is one of the world’s leading manufacturers of tantalum
and niobium materials, with manufacturing and sales locations all around the globe. The Group, TANIOBIS, and Tokyo Denkai Co.,
Ltd., a refiner and processor of tantalum and niobium, work together to contribute to the development of IoT and AI in society by
being reliable suppliers of high-quality materials such as metal powders used in capacitors and semiconductor materials, high-purity
oxides for SAW devices and optical lenses, chlorides for semiconductors, and superalloy additives.

Key Strategies● Establish a dynamic supply system to meet demand● Strengthen new products and new business development● Promote digital transformation (DX) to achieve greater

manufacturing efficiency

Key Strategies● Create resilient supply chains in our existing

businesses

capabilities

Review of FY2022

Outlook for FY2023

In the first half of fiscal 2022, semiconductor-related markets
remained as robust as they had been in fiscal 2021, due to thecontinued strong demand for semiconductors driven by thegrowth in digital transformation (DX). However, in the second
half of fiscal 2022, demand for consumer electronic devices ingeneral, such as smartphones, tablets, and PCs, began to
decline, which led to a marked adjustment of inventory acrossthe supply chain.
Against this backdrop, and in anticipation of medium- tolong-term market growth, we are taking steps to strengthen our
supply system. These steps include starting construction of anew plant in the U.S. and the decision to increase our production
capacity of sputtering targets for semiconductors in Taiwan byapproximately 80% from the current level. In addition, while wecontinue to strengthen our ESG initiatives overall, Isohara Works
can be singled out specifically for receiving a perfect 200-pointscore when audited under the Validated Assessment Program(VAP). This was an evaluation of the facility’s compliance with
the Responsible Business Alliance (RBA) Code of Conduct andfurther demonstrates our commitment to the ESGs.

The adjusting of inventory levels across the supply chain, whichbegan in the second half of fiscal 2022, is expected to continue
in fiscal 2023. Furthermore, although intensifying trade friction
between the U.S. and China and prolonged Russian aggression
in Ukraine, amongst other factors, are raising concerns about
the current macroeconomic environment, market growth is still
expected in various business areas. In the medium- to longterm, growth is anticipated particularly in semiconductor-related
markets due to the full-scale rollout of 5th generation (5G) mobile
communication systems, electrification of vehicles, and theacceleration of decarbonization. Consequently, the demand forthe division’s advanced materials is expected to further
increase.
To meet this growing demand, we will make sound, intelligent capital investments, which will include the construction of
new plant to raise production capacity and the creation of aflexible supply system. This in turn will earn us the trust of ourcustomers. In addition to contributing to the achievement of theSDGs through our products, we also intend to meet society’s
expectations by keeping our attention on new development
trends in response to various market changes and solving problems through internal and external collaboration.

● Leverage specific features and strengths of each site toincrease productivity and improve quality● Strengthen our customer-focused business model● Make sound, intelligent capital investments● Create and commercialize new products to expand ourbusiness base

Review of FY2022

Outlook for FY2023

In the strong market of the first half of fiscal 2022, our main
existing business supplying high-purity tantalum powder usedin capacitors and sputtering targets for semiconductors did well;
however, we entered a period of adjustment in the second half
due to the effects of a downturn in the electronics sector.
The market is expected to bottom out in 2023 and thenrecover. To meet the anticipated steady growth in demand thatwill follow, we have made the decision to expand production
capacity at Tokyo Denkai Co., Ltd., a wholly owned subsidiarysince April 2022. As an example of how we are creating a raw
material procurement portfolio that is resilient to fluctuations in
supply and demand, prices, and other risks, the decision wasmade to invest in the Mibra Mine in Brazil. This decision meansthat TANIOBIS will now be able to purchase tantalum concentrates produced at the mine on a preferential basis. In addition
to the activities described above, we took aim at expanding ourglobal market share by promoting our Customer First Project, aproject in which our people in sales, R&D, and manufacturing
are working together to develop a customer-focused businessmodel.

We expect the recession in the electronics sector to bottom out
in 2023 and then recover, and we believe that demand for ourmainstay product of high-purity tantalum powder used in capacitors and also in sputtering targets for semiconductors, will
improve in the same manner. Given that demand is expected togrow, we will promote customer-oriented sales activities, inwhich sales and engineering are integrated to further expand
our market share. At the same time, we will further strengthen
our competitiveness by leveraging the specific features andstrengths of each of our sites to optimize our product mix andreduce costs. We shall also ensure that our raw material procurement is resilient and implement approved investment projects, such as the expansion of our production facilities inThailand.
In addition, there will be collaboration between TANIOBIS,Tokyo Denkai Co., Ltd. and other Group companies to strengthen our new-business development system, not only in our tantalum and niobium business, but also across the entire range ofminor metals. We shall also seek to quickly make new businesses profitable.

TOPICS
Increased Production Capacity for Sputtering Targets for Semiconductors in Taiwan

Tokyo Denkai Co., Ltd. Becomes Subsidiary

At our Taiwan facility, production capacity of sputtering targets for semiconductors will be
expanded, increasing capacity by approximately 80% from the current level. We will have the
new line designed, built, and commissioned to begin operating in the second half of fiscal
2024 or later as needed.
Sputtering targets for semiconductors are a mainstay product of our Thin Film Materials Business. They are used in manufacturing various semiconductor devices, including
leading-edge logic and memory products. Our decision to increase production capacity is in
keeping with our long-term view that demand is expected to increase as the semiconductor
industry expands in step with ongoing global digitalization. This expansion will lead to a supply system that can flexibly respond to customer demands and earn us their trust.

In April 2022, Tokyo Denkai Co., Ltd. became a wholly owned subsidiary, bringing to the Group its superior technology
and production capacity in the smelting and refining of high-melting-point metals. The company manufactures ingots to
be used for tantalum sputtering targets and has been an important partner in the sputtering target business of our Thin
Film Materials Division. Along with TANIOBIS business of powdered tantalum for sputtering targets, the addition of Tokyo Denkai will further strengthen our vertically integrated supply chain and can only improve the resilience of the supply
system we have in place for these products. Furthermore, Tokyo Denkai and our Group will accelerate the creation ofsynergies across the entire range of minor metals, including the expansion of business related to niobium, a metal thathas great potential in innovative technologies such as superconductive materials.
Taiwan facility earmarked for increased production
capacity

45 JX Metals Corporation

TOPICS

Completed ingots

Sustainability Report 2023 46

Section 2 Value Creation Strategy
Information and Communication Materials Segment

Information and Communication Materials Segment

Functional Materials Business

Titanium Business

Employing advanced metal fabrication technology developed over many years of business, JX Metals has become a global supplierof treated rolled copper foils used in flexible printed circuit boards, as well as of precision Cu alloy products, including titanium
copper, Corson alloy, and phosphor bronze, which are used in connectors, semiconductor lead frames, and other components.

Titanium, a light, strong metal resistant to corrosion, has wide-ranging uses, from aircraft to desalination plants, electric power
plants, and other applications. Group company Toho Titanium Co., Ltd. is engaged in the smelting of titanium, and leverages relatedmaterials and technologies to manufacture such products as catalysts (for propylene polymerization) and chemicals (e.g. materials
for electrodes and dielectrics in multilayer ceramic capacitors).

Key Strategies

Key Strategies● Expand applications of the rolled copper foil and advanced copper alloy products, and improve profitability● Optimize titanium price standards● Strengthen production capacity to expand business● Expand production capacity to meet increased demand

Review of FY2022
Sales volumes of our main products in the first half of fiscal 2022
continued to be strong due to demand created by people telecommuting and their other online activities during the COVID-19
pandemic. In fact, sales volumes reached a half-year record highduring the period. In the second half of fiscal 2022, however,sales volumes were significantly lower compared to the same
period of the previous year. This reduction was due to the economic slowdown caused by restrictions on economic activity in
China, as well as other factors, and the resulting adjustments
made to inventory levels in supply chains.
Although these effects are expected to continue in the next
fiscal year, in the medium- to long-term, as the data society
advances, we anticipate further expansion in the markets fordata centers, telecommunications infrastructure, power devices
and for various electronic devices, such as smartphones andtablets. In addition, we envisage demand for high-performance
metals to further increase with the electrification and automationof vehicles. In response to future growth in demand, we willachieve further improvements in efficiency and productivity, andby bolstering Group manufacturing facilities, will increase manufacturing capacity at each of the Group’s sites thus expanding

our production structures and strengthening our businessfoundations.

Outlook for FY2023
We expect that the economic slowdown in China and otheroverseas countries will continue in fiscal 2023, as will adjustments to inventory levels in the supply chain, with it taking sometime for demand to recover. However, over the medium- tolong-term, we anticipate demand for the high-performance
metals used in IT-related equipment will continue to grow.
Fiscal 2023 will be important for us as we will gain a footholdin this year from which we can strengthen our overall structure
so as to expand sales when things pick up in the future. We will
make capital investments in rolling mills at the Hitachi New Plant(tentative name) and Hitachinaka New Plant (tentative name),while at the same time increasing production capacity at existing
facilities by improving yields and productivity. In addition, we will
pursue alliances with other companies, such as outsourcing
manufacturing and forming joint ventures to ensure our production system is flexible, and we shall also move forward with ourBusiness Continuity Plan (BCP) and ensure we have risk
diversification.

Review of FY2022
Sales of titanium were significantly higher than the previous year
due to a recovery in passenger demand for aircraft applications,replacement demand for Russian-made mill products, andsteady sales of high-purity titanium for general industrial andsemiconductor applications. Profits increased compared to theprevious year despite higher costs due to soaring prices ofimported raw materials, electricity, and supplementary materials.
This improvement was due to price adjustments by some customers, an increase in shipment volume resulting from inventory
shipments, and an increase in export revenues due to the weaker yen. One-time positive factors such as the payout and reversal of inventories manufactured before the cost increase also
had a positive impact. Sales volume in the catalyst businessdecreased from the previous year due to softening demand forpolyolefin catalysts in Asia, mainly resulting from the economic
slowdown in China. Sales volume in the chemical businessdecreased from the previous year due to lower demand for
multilayer ceramic capacitors (MLCCs), which are the main● Generate and pursue new businesses

application for ultra-fine nickel powder, our mainstay product.
This lower demand is a result of the economic stagnation
caused by the rising interest rates in the U.S. and the lockdowns
in China.

Outlook for FY2023
We expect titanium sales to remain firm due to a recovery indemand for titanium in aircraft applications and continued demand to replace Russian-made wrought products. On the other
hand, we expect sales in the catalyst and the chemical businesses to remain soft for the time being, as we anticipate that
it will take more time to see a full-fledged economic recovery in
China and other countries. We expect profits to be significantly
pressured in the titanium business, despite price corrections.
Impacts include the disappearance of one-time positive factorsthat manifested themselves in the previous year, such as thereversal of inventories with low manufacturing costs, as well as
the full-scale disbursement of products with high manufacturingcosts from the second half of fiscal 2022.

TOPICS
Construction of R&D Tower at Kurami Works
We have constructed a new building for R&D at Kurami Works, our main business base. The goal here is toenhance the way we conduct R&D in response to the further development of the IoT and AI society. The facility
was brought online in stages as equipment was installed, and operations started in March 2023.
Kurami Works, one of the main bases of our Focus Businesses, develops, produces, and supplies
high-value-added products such as treated rolled copper foil, used in flexible circuit boards, and high-performance copper alloys, which are used in various advanced devices. Such alloys include titanium copper andCorson alloys.
The strength of Kurami Works has always been its highly customer focused, fast-track development capabilities. This allows customer needs to be swiftly identified and products quickly developed and launched thatmeet these needs ahead of our competitors. In addition to further accelerating our efforts to improve our existing products and develop new alloys and alloy foils, we will also work to improve how we find new applications
and develop new materials that have a high degree of affinity with our proprietary technologies. We will also further enhance our core technologies, which include melting, rolling, and heat treating, and this will lead to more
efficient material development, productivity improvements, and better designed plant and facilities.

47 JX Metals Corporation

TOPICS
Boosting Production Capacity Through the Construction ofa New Catalyst Plant
THC catalyst (Toho High Efficiency Catalyst) is the mainstay product of the catalyst business of Toho Titanium Co., Ltd. This catalyst is a unique high-performance catalyst usedin the production of polypropylene and is a magnesium-titanium type called a Ziegler-Natta catalyst. Polypropylene has a wide range of applications, including automotive interiors
and exteriors, home appliances, packaging materials, and food containers. Toho Titanium
Co., Ltd. develops, manufactures, and sells environmentally friendly catalysts to respondthe urgent need to address environmental issues, such as stricter regulations on chemical
substances.
R&D Tower Kurami Works(Kanagawa Prefecture)

New catalyst production facility at the Chigasaki Plant(Kanagawa Prefecture)

Sustainability Report 2023 48

Section 2 Value Creation Strategy

Metals & Recycling Segment

Metals & Recycling Segment

Metals & Recycling Business

Mineral Resources BusinessWe are able to efficiently use our smelting processes to take copper concentrate and recycled raw materials and supply high-quality
metal products such as copper and precious and minor metals. These products are then offered through a stable supply in Japanand parts of Asia. We will work to build a sustainable, recycling-oriented society under the concept of the Green Hybrid Smelting
process, which maximizes the use of reaction heat from copper concentrate. With this concept, we aim to increase the ratio ofrecycled raw materials (either in raw material input or in product content) to at least 50% by 2040.

The Mineral Resources Business supports the long-term, stable procurement of raw materials for use in advanced materials handled
by our Group. To do so, we participate in overseas copper and minor metal mines, and operate domestic auriferous silica ore mines.
Not only do we operate and manage mines, we also actively engage in the investigation and development of new projects, such as
future exploration activities.

Key Strategies

Key Strategies● Promote various measures to realize Green Hybrid Smelting● Increase the business value of the Caserones Copper Mine through synergies with Lundin Mining Corporation● Pursue our total best and improve productivity from a bird’s-eye view of the supply chain● Further discover and pursue new projects (exploration, development, operational) that also take into account supplying● Encourage measures to evolve and establish an industry-wide Sustainable Copper Vision

Review of FY2022
In fiscal 2022, we worked to optimize the composition of raw
materials, focusing on increased processing of recycled raw
materials. We also pursued our total best from a bird’s-eye viewof the supply chain, and strengthened our competitiveness bystreamlining logistics between locations and increasing the operational efficiency at each manufacturing site.
In the Recycling Business, the volume of recycled materials
collected overseas decreased due to higher transportation andprocessing costs resulting from soaring energy prices. However,this decrease was compensated for by strengthening the collection of materials from Japan. In addition, we acquired allshares of eCycle Solutions Inc., a Canadian E-waste (waste
home appliances and electronic devices) collection and processing company, as part of our efforts to strengthen our Recycling Business initiatives.
Copper prices declined in the Metals Business in the firsthalf of the year due to concerns of the global recession. However, prices rose in the second half of the year due to expectations of a recovery in demand in China. Purchase margins copper concentrates increased from the previous year against the
backdrop of factors such as production ramp-ups at new mines.
In the sulfuric acid market, market prices remained high in thefirst half of the year due to the ongoing tight environment fromTOPICSthe previous year. From the second half of the year, market
prices fell sharply and remained at low levels due to a sharp dropin sulfur prices and a deteriorating supply-demandenvironment.

Outlook for FY2023
The current environment is expected to face further challenges
in the procurement of copper concentrates and the collectionof recycled raw materials. In response, we will strive to maximize
earnings and improve capital efficiency by addressing
materialities.
We expect demand for copper will continue to grow, with
supply falling short of demand. Therefore, we must expand theuse of recycled raw materials, in addition to copper concentrates, to meet this growing demand. We formulated our Sustainable Copper Vision in August, 2022, to fulfill our missions to(1) Establish a stable supply system to support growing demandand (2) Achieve ESG-oriented production and supply (decarbonized, circular economy, etc.). In fiscal 2023, we will pursue
the following four measures to evolve and spread sustainablecopper:(1) Reduce carbon footprint(2) Increase recycling ratio(3) Promote responsible procurement and ESG initiatives(4) Form Green Enabling Partnerships

raw materials to midstream and downstream businesses

Review of FY2022

Outlook for FY2023

As announced in our news release issued on March 28, 2023,
we decided to transfer our 51% stake in SCM Minera Lumina
Copper Chile to Lundin Mining Corporation of Canada. SCM
Minera Lumina Copper Chile is now the operating subsidiary of
our Caserones Copper Mine. The participation of Lundin Mining
Corporation as a management partner of Caserones Copper
Mine is expected to generate many synergies, including productivity improvements and enhanced cost competitiveness. In
terms of operations, the Caserones Copper Mine reached acumulative production of 1 million tons of copper to date, despite production declines resulting from heavy snowfall andwater restrictions. Production at the Los Pelambres Mine was
reduced due to delays in expansion plan progress.
In new mine development projects, we established across-divisional project team to ensure stable supply of raw
materials for downstream operations. This team evaluated andstudied specific projects focused on tantalum and titanium. As
a result, we launched a joint venture (JV) with AMG Brasil SA(“AMG”) and began production of tantalum concentrate in January 2023. This concentrate is produced from ore at the Mibra
Mine operated by AMG.

Caserones Copper Mine works to improve productivity andstrengthen cost competitiveness through their partnership with
Lundin Mining Corporation, a company which has an excellent
mine operating capacity. The mine will also participate in integrated development in a Lundin Group exploration project nearby, which will enable extended mine life and other long-termbusiness operations. Going forward, the Caserones Copper
Mine will continue to support the Copper Smelting Business as
an important raw material supplier. The Los Pelambres Mine will
focus on increasing production during fiscal 2023 through thecompletion of the expansion plan.
In addition to our participation in the Mibra Mine (tantalum
business), we will move forward with the investigation and survey of various minerals around the world, including minor metals,
copper, and silica ore. Here, we aim to achieve stable suppliesof raw materials based on future needs in our midstream anddownstream businesses, as well as commercialize ourbusiness.

TOPICS
Participation in Tantalum Concentrate Production Processes at Mibra Mine

Promoting Responsible Procurement
At JX Metals, we decided to participate in the production of raw tantalum materials as
our first step toward expanding our resource business into the Minor Metal Business.
Since January 2023, we have produced tantalum concentrate at the Mibra Mine, operated by AMG, under a joint venture (JV) between JX Metals and AMG. Tantalum and manyother minor metals are expected to become increasingly important as raw materials foruse in advanced materials. Securing long-term, stable supplies of these raw materials will
be vital, as companies will be required to take proactive steps toward ethical and sustainable responsible procurement that takes safety and human rights into consideration.
JX metals will further pursue long-term, stable supply of raw materials and responsible
procurement through our part participation in this project.

On December 15, 2022, JX Metals Smelting Co., Ltd. obtained The Copper Mark certification at the Saganoseki Smelter & Refinery and Hitachi Works. The Copper Mark, foundedin 2019, is a highly reliable guarantee framework that encourages responsible production
practices and demonstrates a commitment to green transition in the copper industry.
JX Metals Smelting Co., Ltd. became the first copper smelter in Japan to obtain certification after undergoing an audit by an independent third-party organization. The CopperMark recognizes our compliance with a wide range of criteria, such as environmental, human rights, community, and governance standards across 32 categories. This certification
will strengthen the competitiveness of our sustainable businesses in the face of growinginternational demand for ESG initiatives.

Overhead view of Mibra Mine and operating plant
The Copper Mark logo

49 JX Metals Corporation

Sustainability Report 2023 50

Section 3

Materiality and ESG Management

Materiality Identification Process

Materialities (Priority Issues) and KPIs
(Key Performance Indicators)
The JX Metals Group has identified six materialities for priority action in order to realize our 2040 Long-Term Vision.
KPIs have been set for each materiality, and the ESG Committee, chaired by the president, administrates this system, measuring
and assessing levels of achievement for these KPIs.

Materialities

Environment

Contributing toEnvironmental
Conservation

P53

Initiatives● Contribute to global

environmental
conservation by creating acarbon-free and recyclingoriented society

FY2022 KPIs

Related SDGs

Total in-house CO2 emissions: Promoting
initiatives to achieve net zero CO2 emissions
in fiscal 2050 and 50% reduction in fiscal
2030 (vs. fiscal 2018)

P66● Advance development of

new technologies andcontribute to an IoT/AI
society● Create a healthy, safe,

Create Attractive
Workplaces

P77

and peaceful working
environment for all
employees● Create an environment inwhich diverse employees
feel fulfilled and fully
express their talents

SocialIncrease percentage of recycled raw
materials: Expand the breadth of recycledmaterials to be treated

Develop advanced materials needed by the
IoT/AI society
Build a framework to support technologybased management
Reduce serious occupational accidents: Less
than 0.70 accidents (four days or more oflost work time) per 1,000 workers in fiscal
2022
Increase annual leave utilization rate: 80% ormore in fiscal 2022
Implement initiatives to revitalize people andorganizations
Initiatives for health promotion: Cancer
screenings for 70% of employees or more infiscal 2022
Maintain and improve hiring rate for disabled
persons: 2.3% or more in fiscal 2022

● Conduct businessRespect Human
RightsP83

activities that respect thehuman rights of all
throughout the supply
chain, including local
community residents,
customers, employees,
and business partners

P90

Governance

Strengthen
GovernanceP94

trust with local
communities throughcommunity-based social
contribution activities andcommunications in every
business location in
Japan and abroad● Ensure sound,transparent business
management via thoroughcompliance and risk
management activities

Percentage of employees taking humanrights training (100% in fiscal 2022)

Conduct survey of human rights in supply
chainsContinuing dialogue with local communities

Steady operation of group-wide risk
management
Compliance training tailored to businesscharacteristics and social movements, etc.

Evaluate Groupbusiness activities

peers. The identified materialities will be periodically reviewed inaccordance with future changes in social conditions and needs,
management strategies, and other factors.

STEP 2

Identify stakeholder
expectations andrequests

STEP 3

STEP 4

Prioritize issues tobe addressed

Define materialities andestablish KPIs

ESG Promotion System
and November to discuss activity policies for each priority issue
and report on the status of activities.

ESG Promotion System
President

ESG Committee
Chair: President
Secretariat: ESG Promotion
Department
Directors/Executive Officers/
Auditors

Chair: Officer in Charge of the ESG
Promotion Department

ESG Promotion Managers
Meeting

Secretariat: ESG Promotion
Department
General Managers of Corporate and Business Division, Business
Division General Managers
Representatives From Each Operating Site/Group Company(Domestic & Overseas)

Permeating ESG Management● Foster relationships of

Coexistence and
Co-Prosperity
With Local
Communities

STEP 1Though the Group has taken a variety of actions over the years
toward social contribution and environmental conservation, it
has become necessary to strengthen organizational response
to global ESG trends and take actions toward ESG managementfrom a Group-wide perspective. Therefore, in October 2020, weestablished the ESG Promotion Department to oversee ESG
initiatives, and created related committees to assist.
The ESG Committee serves as an advisory body to thepresident, and is responsible for basic policies and activity plans
related to ESG initiatives, as well as monitoring of these initiatives. The ESG Committee is chaired by the president of theCompany, with members from the Executive Council and withparticipation by outside directors as observers. This committee
meets twice a year in principle. In addition, in order to promote
and permeate ESG activities throughout the Group, we haveestablished the ESG Promotion Managers Meeting as a subordinate body to this committee, consisting of the ESG promotion
managers from each of the Company’s departments and eachGroup company. Important ESG-related matters are discussed
and reported to the Board of Directors and the Executive Council
as appropriate.
In fiscal 2022, we held ESG Committee meetings in June

Landfill disposal rate: Less than 1% in fiscal
2022
ProvideAdvanced
Materials That
Support Livesand Lifestyles

The following steps were taken to identify Group materialities,
based on global social issues and the goals set forth by theSDGs, as well as international guidelines (GRI, ISO 26000, etc.),
initiatives in Japan and overseas, and trends among industry-

The Group aims to deepen understanding about the importance of ESG and
our activities. To do so, we distribute information on ESG using the Group intranet and internal newsletters. We also hold internal trainings and e-learning
programs. In 2023, we conducted training for employees at each of our major
business locations from May to August to further spread ESG activities. These
trainings featured AI voice narration for the first time, receiving positive feedback
from 84% of the participants.
In addition, we distribute the Sustainability Report each year and conduct
questionnaires available via paper and online to survey employees. Surveys
cover the penetration of ESG and CSR
mindsets and status of employee involvement in practicing ESG and CSR. In fiscal
2022, 4,814 of 5,652 eligible employees
responded to the survey, resulting in a response rate of 75%.

Excerpt of Questionnaire Responses
Q: Do you understand our ESG management initiatives?
Yes
81.9%
Unsure
14.8%
No
3.1%
No answer
0.2%
Q: D o you understand and agree with the JX Metals Group Code of
Conduct?
Yes
96.2%
No
2.8%
No answer
1.0%
Q: D o you think materialities are well understood in your organization
and workplace?
Yes
69.1%
No
29.2%
No answer
1.7%*R espondents have multiple options for answering questions, with affirmative answers categorized as “Yes” and negative answers as “No.”Training slide materials

51 JX Metals Corporation

Sustainability Report 2023 52

Section 3 Materiality and ESG Management

Materiality 1

Contributing to Environmental Conservation

Initiatives for a Decarbonized Society
The JX Metals Group views climate change as an urgent issue that must be resolved on a global scale, and in order to contribute to
the resolution of this issue, we have set the ultimate goal of achieving net zero CO2 emissions and are further accelerating our efforts
to achieve this goal.

Disclosure Based on the TCFD
Recommendations
In accordance with the TCFD’s recommendations, the Groupwill strive to proactively disclose information based on the disclosure framework of Governance, Risk Management, Metrics
and Targets, and Strategy. We will also take concrete measures
to address climate change.

Environment
Contributing to Environmental Conservation

Materiality 1

The Group maintains a keen awareness of the impact our business activities have on the environment, and our basic policy is tocontribute to conservation of the environmental on a global scale by promoting the development of technologies that enhance theproductivity of resources and materials. Furthermore, as we execute business, we seek to reduce our environmental impact at every
stage of the supply chain.
Forming a RecyclingOriented Society

Initiatives for a
Decarbonized Society

Conservation of
Biodiversity

Other Initiatives for Environmental
Conservation● Governance● Risk Management

The ESG Committee, an advisory body to the president, is responsible for formulating basic policies regarding the Group’s
response to climate change, setting priority targets, and monitoring these targets. The ESG Committee is chaired by thepresident of the Company, with members from the Executive
Council and with participation by outside directors as observers. This committee meets twice a year in principle. Mattersdeliberated and decided are discussed at and reported to the
Executive Council and the Board of Directors as appropriate,
depending on the content.

At the Group, the ESG Promotion Department works witheach department to assess and identify risks and opportunities related to climate change, including scenario analysis, inaccordance with the framework of the TCFD recommendations. The department recently collected and analyzed information for scenario analysis on a wide range of risk factors
associated with climate change impacts, including regulations
and business impacts, and began to identify our own risks
and opportunities related to climate change response, as wellas medium- to long-term business strategy measures. The results of the analysis and the status of measure implementation
are shared with management through the ESG Committee
and other channels. Based on this, each department takes
action in these areas in cooperation with the ESG Promotion
Department.

Environmental
Management

Systems for Climate Change Action

2

ENEOS Holdings

2

2

JX Metals Group

Board of Directors
P54

P61

P62

P64

P65

Executive Council

KPIs and Progress
KPI

Assessment:

Achieved/Steady Progress

FY2022 Results/Progress

Assessment

ESG Committee*1
Chair: President

Total in-house CO2
emissions: Promoting
initiatives to achieve net
zero CO2 emissions in
FY2050 and 50% reduction
in FY2030 (vs. FY2018)

We continued our activities through the Carbon Free Project, which waslaunched to achieve these targets, and promoted a variety of initiatives for
decarbonization, including the introduction of CO2 free electricity at each of oursites and the creation of roadmaps per division toward net zero emissions.

Increase percentage ofrecycled raw materials:
Expand the breadth ofrecycled materials to betreatedWe have been working to increase the percentage of recycled raw materials usedin copper smelting (input ratio of raw materials or content ratio in products) to
50% or more by 2040 by expanding our facilities and by researching and testing
new processes for better treatment of recycled materials and improving logistics
efficiency.

Landfill disposal rate: Less
than 1% in FY2022

We have set a goal of keeping our landfill disposal rate at no more than 1% inorder to cut down on waste with the aim of minimizing our impact on theenvironment. Our landfill disposal rate in fiscal 2022 was 0.92%.

53 JX Metals Corporation

Not Achieved

Secretariat:
ESG Promotion Department
Directors/
Executive Officers

Compliance Committee
Safety and Environment
Committee
Carbon Free Committee*2

Energy-Conservation
Promotion
Subcommittee(Subcommittees areformed for eachtheme as appropriate)*1 Formulates basic policies on climate change response, sets priority issues, monitors each, etc. each theme as appropriate*2 Discusses and determines Group-wide policy and specific measures to achieve net-zero CO2 emissions

Sustainability Report 2023 54

Section 3 Materiality and ESG Management

Materiality 1

Contributing to Environmental Conservation

Environment● Metrics and Targets▶The JX Metals Group’s Decarbonization Vision

Reduce total in-house CO2 emissions by 50% in FY2030
versus FY2018, achieve net zero by FY2050
The Group has established our in-house CO2 emissions (Scope
1 and 2) as an indicator of climate change and aims to achieve
net-zero emissions by fiscal 2050. We have set an interim targetof a 50% reduction by fiscal 2030 versus Scope 1 and 2 total
in-house emissions in fiscal 2018, based on backcasting fromour fiscal 2050 goal.

● Strategy

1. Recognition of Climate Change-Related Risks andOpportunities<Analysis of climate change-related risks andopportunities>
In identifying the risks and opportunities that climate change
poses to our Group and businesses, and in considering strategies to address risks and capture opportunities, we referred to
the World Energy Outlook (WEO) of the International Energy
Agency (IEA), the New Policies Scenario (NPS) of the WEO
2018, the Sustainable Development Scenario (SDS) in light of
the Paris Agreement, as well as the Net Zero Emissions by 2050
Scenario (NZE Scenario) published in 2021. Furthermore, ouranalysis adopts global warming scenarios (from RCP2.6 to
RCP8.5) from the Fifth Assessment Report (released in 2014) of
the United Nations Intergovernmental Panel on Climate Change(IPCC).

<Identification of climate change-related risks andopportunities>
Assuming a transition to a decarbonized society in the wake ofclimate change, the Group’s businesses will play a major role inshifting the power generation mix to renewable energy sources,
transforming power use in ways such as electrification, andachieving social implementation of the circular economy. Opportunities for increased product demand and the evolution of
our offerings are also expected.
On the other hand, there are risks such as increased costs
associated with the Group’s own efforts to become carbon
neutral on a global basis and lost opportunities due to delays inthis process. In addition, there are potentially increased physicalrisks of extreme weather events damaging production facilities
and logistics networks at operating sites in Japan and overseas,
resulting in shutdowns.

Identified Risks and Opportunities
Category

ImpactRisk/Opportunity
Increased costs to achieve net-zero
CO2 emissions

Policies andRegulations
Transition
Risks

Physical Risks

Introduction and strengthening ofcarbon taxes, etc. in Japan andabroadReputation

Loss of opportunity due to delayed
action toward decarbonization andenvironmental impact reduction

Acute

Damage to facilities and shutdowns
due to extreme weather events
Increased demand for nonferrous
metals needed for a decarbonizedsociety (Base Businesses)

Measures●

Reducing costs through the use of transition finance, energy-conservation activities, etc.

●

Conversion to electricity derived from renewable energy sources, conversion to low-carbon footprint(low-CFP) and/or decarbonized fuels, and creating innovation and improvements in manufacturing
processes

Opportunities

Realizing circular economy
Circulareconomy55 JX Metals Corporation

Increased demand for andmandated recycling of automotive
LiBs

in order to meet this demand.
However, the results of the scenario analysis revealed theimportance of smoothly transitioning the JX Metals Group tocarbon neutrality and evolving our BCPs to mitigate physicalrisks associated with natural disasters and minimize their impact
when they occur.

(1) Transition Risks(1) Increased costs to achieve net-zero CO2emissionsElectricity accounts for approximately 60% of our Group’s
total CO2 emissions (Scope 1 and 2), and we are switching
to CO2-free electricity at our major operating sites in Japanand overseas. We are also considering measures to generate renewable energy on our own and to address energy
sources other than electricity used in our manufacturing
processes.
Although additional costs are incurred in the necessary
initiatives to achieve this, in the form of capital investment,
R&D expenses, and the price difference (premium) between
CO2-free electricity and traditional electricity, we will steadily
move toward decarbonization through the use of transition
financing, a first in the nonferrous metals industry, and by
reducing costs through energy-conservation activities.

(2) Introduction and strengthening of carbon taxes,
etc. in Japan and abroad
Carbon taxes are being considered for introduction in Japanand abroad. If these or other systems are introduced, there
is a risk of cost increases based on CO 2 emissions. If acarbon tax is introduced, the annual cost increase is expected to be approximately 5 billion yen*.
The Group has established a roadmap toward carbon
neutrality and is steadily implementing various initiatives toreduce CO2 emissions, so the cost burden is expected tobe relatively insignificant.
* Fiscal 2018 Scope 1 and 2 emissions x 50% (2030 target): t-CO2e x USD50/tCO2e x assumed exchange rate(3) Loss of opportunity due to delayed action toward
decarbonization and environmental impact
reduction
If CO2 emission reductions do not proceed according to theroadmap or if other environmental impacts increase, there
is a risk that the Group may suffer harm to our social credibility. In addition, delays in responding to climate change-related requests from customers could result in reduced sales
opportunities.
The Group pursues steady decarbonization initiatives
and responds to individual customer requests. We also
develop technologies and make capital investments to reduce our carbon footprint (CFP) and increase the percentage of recycled raw materials in accordance with the Sustainable Copper Vision (see page 33). We are also building
partnerships with external parties to achieve and disseminate the Sustainable
Copper Vision.

Physical sorting technology forrecycled materials

Developing technology and making capital investments for decarbonization and reduction of environmental
impact● Disseminating and achieving the Sustainable Copper Vision through the formation of cross-industry
partnerships
●

●
●

●
●

 nhancement of our business continuity plans (BCPs) and regular trainingEEstablishing a Business Continuity Management (BCM) aking businesses more resilient through portfolio review
MEstablishing a stable supply system through the evolution of Green Hybrid Smelting

Products
Increased demand for high-end
electronic materials (Focus
Businesses)

2. Scenario Analysis
With the transition to a decarbonized and resource-recycling
society, demand for nonferrous metals and advanced electronicmaterials related to our Group’s businesses is expected to grow,and we believe that the key point is how to realize capacity
expansion, technology development, and partnership-building

●
●

●
●

●

 aking capital investments to meet demand
M
Engaging in open innovation through industry-academia collaboration and investment in startups
 aking efforts to evolve Green Hybrid Smelting by increasing the recycling raw materials ratio
MEvolving sustainable copper through the formation of cross-industry partnerships
Developing technologies, making capital investments, and engaging in industry-academia-government
collaborations for LiB (lithium ion battery) closed-loop recycling(2) Physical Risks(1) Damage to facilities and shutdowns due to extreme weather events
Extreme weather events, including intensifying typhoons,may cause damage to the Group’s various facilities at operating sites in Japan and overseas. In addition, damage to
our supplier and logistics networks increase the risk that
we cannot sustain normal operation.
The Group has conducted analyses using hazard maps
and other data at our major operating sites in Japan andconfirmed that the risk of damage from extreme weather
events is low. In addition, we have established business
continuity plans (BCPs), and conduct periodic training andreviews to promote the establishment of Business Continuity Management (BCM). We believe that these measures
will keep the impact on our business to relatively minor
levels even if the risk of damage to facilities or shutdowns
due to extreme weather events materializes.

Sustainability Report 2023 56

Section 3 Materiality and ESG Management

Materiality 1

Contributing to Environmental Conservation

Environment

Initiatives From FY2022 to Today● Reduce CO2 Emissions (Scope 1(3) Opportunities(1) Increased demand for nonferrous metals needed
for a decarbonized society (Base Businesses)
Needs for renewable energy and electrification of mobility
are expected to grow significantly toward the realization ofa decarbonized society, and copper and other nonferrous
metals will be increasingly used in these areas. The JX Metals Group earned operating profit of approximately 18.7
billion yen in fiscal 2022 in the Mineral Resources Businessand Metals & Recycling Business, and this growing demandis expected to provide opportunities for further sales andearnings growth for the Group. The Group is working tostrengthen our business through portfolio reviews, and istaking various measures to increase the input recycling raw
materials ratio and reduce our CFP in Green Hybrid Smelting, which utilizes both copper ore and recycled raw materials, in order to establish a stable supply system.

(2) Increased demand for high-end electronicmaterials (Focus Businesses)
In addressing climate change, it is essential to significantly
improve energy use efficiency using technologies such as
IoT, AI, and 5G/6G. Many high-end electronic materials areused in these fields, and demand for these materials is
expected to continue to grow. The Group maintains productfamilies with high global market share in the area of electronic materials, including sputtering targets and treatedrolled copper foil for FPC, and in fiscal 2022, related businesses generated approximately 56.4 billion yen in operating profit.
Currently, we are constructing several new plants andincreasing capacity to meet strong demand. In addition, we
are working to construct a new plant in Hitachinaka City,
Ibaraki Prefecture, and in the U.S. in anticipation of further
growth in demand. In addition to these capital investments,from a longer-term perspective, the Advanced Technology& Strategy Department is taking the lead in open innovation
through industry-academia collaboration and investment instartups.

Illustration of the completed Hitachinaka New Plant (tentative name)

57 JX Metals Corporationand 2)(3) Realizing circular economy
Though demand for copper will continue to grow over thelong term as the world moves toward a decarbonized society, the supply of copper ore and recycled raw materials
from existing mines is limited.
The Sustainable Copper Vision we have establishedaims to build a stable supply system to support growing
copper demand through Green Hybrid Smelting that utilizes
both copper ore and recycled raw materials. As one of ourmeasures to evolve and gain wider use of sustainable coppers, we are working on technological development to increase the recycled raw materials ratio (input ratio of raw
materials or content ratio in products) to 50% or more by2040. To this end, it is essential to enhance our system forcollecting and processing recycled raw materials. Here, wewill not only strengthen the supply chain through capital
investment and M&A, but also form Green Enabling Partnerships with companies, local governments, universities,
and research institutions who work together to promotesustainable copper. Through these partnerships, we engage in product and scrap collection, raw materials reuse,and joint technology development.

(4) Increased demand for and mandated recycling of
automotive LiBs
Electric vehicles (EVs) are expected to become widespreadas part of a decarbonized society. This will increase demand
for lithium, cobalt, and nickel used in lithium-ion batteries(LiBs) in EVs. There are also concerns about geopoliticalrisks and rising resource nationalism surrounding theseresources. Future large-scale disposal of LiBs is also expected, requiring their efficient recycling.
The Group is working to develop technologies, conduct
demonstration trials, and establish a resource recycling
system throughout the supply chain with the aim of realizing
closed-loop recycling to extract the aforementioned metals
from automotive LiBs reaching end of life (EoL) in as automotive battery materials.

Toward the goal of reducing our total inhouse CO2 emissions in fiscal 2030 andfiscal 2050, we are working on four priority
activities: (1) Introduction of CO2-free electricity, (2) Generation of renewable energy,(3) Promotion of zero energy loss activities,and (4) Fuel switching and technology development toward decarbonization.
As a result, our in-house CO2 emissions in fiscal 2022 (total of Scope 1 and
2) were 797 thousand t-CO2.

JX Metals Group Scope 1 and 2 Emissions(Thousand tons of CO2)
2,000
1,500
1,000

1,811
285

Domestic Scope 1

Domestic Scope 2

Overseas Scope 1

Overseas Scope 2

1,697

167

253
163

821

762

1,345
279
162

282

797
66
152
193

416

383

386

FY2020

FY2021

FY2022

488

500
0

538

520

FY2018FY2019● Calculate of CO2 Emissions (Scope 3)

In addition to existing data for Scope 1 and 2 CO2 emissions, infiscal 2021 the Group began calculating indirect Scope 3 emissions in order to determine the overall CO2 emissions generated
by our operations and products. Through a Group-wide initiative
centered on the Carbon Free Project, we calculated emissions
results for each fiscal year while obtaining insights from outside
experts. Going forward, we will study ways to improve calculation methods and accuracy for each category, as well as toestablish and implement emission reduction targets.

892
73
155

Scope 1, 2, and 3 Emissions (FY2022 results)[Thousand tons of CO2]

Scope 2
Scope 1 259
538

Scope 3 Emissions by Category
❿ 427
❼5
❻1

❾2

⓬ 86

⓭4

❺ 22

5,015

❹ 971
❸ 89

Scope 3 4,218

❷ 176

4,218
❶ 2,432

Scope 1 and 2 emissions are calculated for operating sites of high quantitative
importance. Scope 3 emissions are calculated mainly for operating sites where
production activities are conducted, and the scope of calculation is different for eachcategory. Categories ❽, ⓫, ⓮, and ⓯ were not calculated because the Group has no
relevant activities in these areas.

Scope 3 Categories❶ Purchased goods and services ❷ Capital goods ❸ Fuel- and energy-related activities not included in Scope 1 or 2 ❹ Upstream
transportation and distribution ❺ Waste generated in operations ❻ Business travel ❼ Employee commuting ❽ Upstream leased assets❾ Downstream transportation and distribution ❿ Processing of sold products ⓫ Use of sold products ⓬ End-of-life treatment of soldproducts ⓭ Downstream leased assets ⓮ Franchises ⓯ Investments

Achieving Net Zero
● The Group’s CO2 Emissions● Society’s Total CO2 Emissions

In our assumptions for fiscal 2050, emissions are expected toincrease due to business expansion over the course of time. In
response to this, we aim to achieve net-zero total in-houseemissions (Scope 1 and 2) in fiscal 2050 by combining energy
conservation, purchase and in-house generation of renewableenergy, electrification and fuel switching, process modification,and carbon capture and recycling*, centered on the four priority
activities we have already launched.

Through our recycling business, specifically the evolution ofGreen Hybrid Smelting, and supply of advanced technologicalmaterials and products, we contribute to the reduction of CO2
emissions in society as a whole. We not only strive to reduce
the Group’s CO2 emissions to net zero, but also to reduce theCO2 emissions of society as a whole.

* Includes the effects of recovery of CO2 and other forms of carbon (pyrolysis oil, etc.)
through combustion, etc., of recycled materials, enhanced physical sorting of recycledmaterials, increased ratio of biomass plastic in procured recycled materials, and CO2
absorption through in-house efforts with forests, etc.
Bench scale equipment for LiB recycling

Sustainability Report 2023 58

Section 3 Materiality and ESG Management

Materiality 1

Contributing to Environmental Conservation

Environment

als Group by sharing production technologies developed
individually by each department. As part of these efforts,
we pursue further energy conservation, the installation ofPriority Activity #1

Introduction of CO2 -Free Electricity
Since approximately 60% of the Group’s in-house CO2
emissions come from electricity, we began introducing CO2-free electricity* in fiscal 2020. In fiscal 2022, the switch toCO2 -free electricity was completed at all major operatingsites in Japan, except for some sites with contractual re-strictions. We are also gradually switching electricity at ouroperating sites outside Japan.
* CO2 -free electricity: Electricity derived from virtually non-fossil-fuel power sources, etc., that does not result in CO2 emissions, with an adjusted CO2 emission
factor of 0.00 t-CO2 /kWh. This may include nuclear power as well as renewableenergy such as hydro, wind, solar, etc.

Generation of Renewable Energy* PPA: Power Purchase Agreement. A system in which a company or other facility owner leases its premise, roof, or other space, a power company installs asolar power generation system, and the facility owner uses the power generated
and pays a fee

Group, and management from Group companies. Since its
inception, the committee has been studying decarbonization and resource recycling measures that contribute toimproving business competitiveness and added value froma company-wide and strategic perspective toward net zeroCO2 emissions. These studies consider (1) The JX Metals
Group Long-Term Vision and Medium-Term Management
Plan for 2023-2025, (2) The Sustainable Copper Project,and (3) Social conditions, etc. Based on these considerations, the committee has decided to focus on the early
adoption of carbon-neutral plants (net zero CO2 Scope 1
and Scope 2 production sites, and, particularly, a comprehensive reduction of fuel-derived CO2 emissions).

Renewable Energy Facilities and Total Electricity
Generation (FY2022) (Thousands of kWh)
Site

MethodKakinosawa Power Plant, JX Metals
Corporation

Hydroelectric

24,629

Solar

2,351

Kakegawa Works, JX Metals
Precision Technology Co., Ltd.
Isohara Works

Generated

Solar

211

Shimoda Hot Springs Co., Ltd.

Geothermal

36

Nikko Metals Taiwan Co., Ltd.

Solar

205

Nippon Mining & Metals (Suzhou)Co., Ltd.

Solar

71

JX Metals Korea Co., Ltd.

Solar

112

Materials Service Complex CoilCenter (Thailand) Co., Ltd.

Solar

14

Promotion of Zero Energy Loss Activities

59 JX Metals Corporation

Fuel Switching and Technology Development Toward Decarbonization

Example of a solar power generation system installed by a PPA operator

Priority Activity #3

As a Group that operates in an electricity-intensive industry,
we have been promoting energy conservation activities at
every stage of our business activities for some time. However, we believe it is now necessary to promote zero energy
loss activities from new angles in order to achieve net-zero
CO2 emissions. For example, we will take on the challengeof achieving zero energy loss by soliciting ideas from all

Priority Activity #4

In addition to electricity, our business processes use heavy
oil, coke as a reducing agent, and other energy sources,
and we are working to reduce CO2 emissions from thesesources. One candidate to achieve this is fuel switching. In
the industry, technologies are being developed for new fuelssuch as hydrogen and ammonia, and we will also consider
the use of these fuels.
We established the Carbon Free Committee in fiscal
2022 as an organization to discuss and determine company-wide policies and specific measures toward net zeroCO2 emissions. The committee is led by the ESG Promotion
Department and membership includes executives fromeach business unit and production site, the Technology

Priority Activity #2

The JX Metals Group is engaged in generating our own
renewable energy. To date, we have introduced hydroelectric, binary, and solar power generation facilities at our operating sites in Japan and overseas. In June 2022, oursecond on-site solar power generation facility using a PPA*
began operation at the Isohara Works.
In April 2023, we implemented an off-site PPA modelfor the Kurami Works. This is the first time for the Group to
adopt an off-site model outside a plant site. We expect
power generation on the order of 9,000 kW (solar panel
basis), making the system the largest off-site PPA solar
power generation systems for a single business site in Japan. In addition to this solar off-site PPA model, we installed
solar power generation equipment in the newly constructed
R&D building at the Kurami Works to meet a portion ofelectricity needs.

waste heat recovery equipment, and other measures toreduce CO2 emissions across the Group.

Group employees, such as updating facilities with a focus
on CO2 reduction that goes beyond cost reduction, andfundamentally reviewing facility operation methods.
In June 2023, we established the Manufacturing Technology Office in the Advanced Technology & Strategy Department under the Technology Group. This organization
aims to optimize production processes across the JX Met-

Priority Activity #5

Developing a Transition-Linked Loan Framework as the First Such Endeavor in the Japanese
Nonferrous Metals Industry
Currently, expectations are growing for transition-linked loan
frameworks (TLL) to serve as a mechanism to support theimplementation of long-term transition strategies by industries with significant GHG emissions, and rules are being
developed in Japan and overseas to this end.
In June 2022, the JX Metals Group became the first in
the Japanese nonferrous metals industry to develop a transition-linked loan framework (TLLF). This framework wasdeveloped with the support of Mizuho Bank, Ltd. and has
acquired a third-party assessment regarding its applicability
to various principles and guidelines, including the Basic
Guidelines on Climate Transition Finance established by the
Ministry of Economy, Trade and Industry, the Ministry of theEnvironment, and the Financial Services Agency. We haveestablished two sustainable performance targets (SPTs) in
our TLLF and linked the achievement of these SPTs to theinterest rate terms of the TLL, thereby establishing a mechanism for us to commit to the implementation of our transition strategy.
Based on the framework we have formulated, the Company entered into a TLL agreement with Joyo Bank, Ltd. inJune 2022. This is the first TLL project in the nonferrous

industry in Japan, and will be used to cover the environmental costs of the New Hitachi-kita Factory (tentativename), a new production base for sputtering targets forsemiconductors currently under construction in Hitachi City,
Ibaraki Prefecture.
Specific Targets for TLLF Initiatives
SPT 1:	Maintain 50% reduction of CO2 emissions by FY2030 (vs.
FY2018)SPT 2: 	Increase the percentage of recycled raw materials to 25%
by FY2030

New Hitachi-kita
Factory (tentative
name)Sustainability Report 2023 60

Section 3 Materiality and ESG Management

Materiality 1

Contributing to Environmental Conservation

Environment

tem to recycle these secondary wastes and the valuable metals
contained therein. Affiliated companies involved in our Environ-

Priority Activity #6

mental Business work with the Metals and Recycling Businesssites to achieve a recycling-oriented society.

Full Participation in the GX League
Recycled Raw Materials
The GX League, led by the Ministry of Economy, Trade andIndustry (METI), is a framework for industry, government,
and academia to collaborate in the challenge of Green
Transformation (GX) with a view to achieving carbon neutrality by 2050 and reforming Japan’s entire economic andsocial system. We participate in GX activities, and we expressed our support for the GX League Basic Concept.
We announced our participation in Phase 1, covering
fiscal 2023 to fiscal 2025. Phase 1 will include proof-of-concept tests and dialogues regarding three initiatives: (1)A platform for the future vision, (2) A platform for market
creation and rulemaking, and (3) A platform for carbon credit exchange. JX Metals will
participate actively in discussions and information exchange toward the achievement of GX.

At the Group, we recognize that the mission of players involved in the materials industry is to minimize resource final disposal throughan ongoing cycle while maintaining the maximum value of these resources. Based on this concept, we aim to achieve a circular
economy.

Minor metals such as nickel, cobalt, and lithium used in LiB are
not produced in Japan, but are rather concentrated in a specific
set of countries and regions. Reducing the environmental impact
and supply chain risk associated with the use and securing ofthese mineral resources has become a serious social issue.
In 2020, we established a closed-loop recycling process torecover minor metals from end-of-life automotive LiBs, reusing
these metals as raw materials for automotive LiBs in continuous
processing bench-scale test equipment installed at Hitachi
Works. A scaled-up version of the process is in place at JX
Metals Circular Solutions Co., Ltd. (Tsuruga, Japan), and we are
performing proof-of-concept test operations. In addition to theoperation of a high-purity nickel sulfate recovery facility (launchedin 2021) and a high-purity cobalt sulfate recovery facility (2022),
we began operations of a high-purity lithium carbonate recovery
facility in April 2023. In the future, we will provide high-purity
recycled metal salts to the supply
chain for tests of closed-loop
recycling.

Participating in a Consortium to Develop
LiB Recycling Technology in Germany
To demonstrate the closed-loop recycling of automotive LiB
using our process in the German government-supported

61 JX Metals Corporation

Cellphones

Selected as a NEDO Green Innovation
Project
In April 2022, the New Energy and Industrial Technology Development Organization (NEDO) adopted our project for the Development of Technology for Closed-Loop Recycling for Automotive LiB for their Green Innovation Fund. Utilizing this fund incooperation with academia, we are conducting the following
studies according to schedule: (1) Establishment of a life cycle
assessment (LCA) evaluation method for LiB recycling, (2) Advancement of metal recovery technology using hydro-metallurgical processing, and (3) Advancement of metal recovery technology in the detoxification pretreatment process.

Our Smelting, Refining, and Recycling Business generally buries
secondary waste (incinerated ash, incineration residue, etc.)
generated during the treatment of industrial waste as the final
method of disposal.
Pursuing the notion of never discard, never bury, the JX
Metals Group strives for zero emissions by combining our environmental and recycling businesses to build and operate a sys-

LiB, etc.

Waste oil

Acid/Alkaline waste Shredder dust

Sludge, etc.

Four Environmental Service Companies
Pre-Treating Recycled Materials and Detoxifying Industrial Waste

JX Metals Tomakomai
Chemical Co., Ltd.

JX Metals Environmental
Services Co., Ltd.

JX Nippon Takasho Co., Ltd.
(Wholly-owned subsidiary of
JX Metals Trading Co., Ltd.)

Raw Materials Containing Valuable Metals After Pre-Treatment
HMC Department, Hitachi Works,
JX Metal Smelting Co., Ltd.

Saganoseki Smelter & Refinery,
JX Metals Smelting Co., Ltd.

Copper concentrates

HVBaTCycle Consortium (adopted in 2022), we built a benchscale plant similar to Hitachi on the TANIOBIS yard (Goslar),which began operations in March 2023. Using the black mass
(cathode active material powder recovered from discarded batteries) provided by Volkswagen, we work with project partners
to optimize the process.

Initiatives for Zero Emissions
Bench-scale equipment at Hitachi
Works

Plating scrap

JX Metals Mikkaichi
Recycle Co., Ltd.

Forming a Recycling-Oriented Society

Closed-Loop Recycling of Automotive
Lithium-Ion Batteries (LiB)

Printed circuitboardsIndustrial Waste

Recycled raw materials

Intermediate products
from Saganoseki

Recycled raw materials

Copper smelting/precious metal refining process
Dry/wet smelting

Lead smelting/precious metal refining process
Dry/wet smelting

Cu/Au/Se

Ag/PGM/Te/Pb/Bi/Sb, etc.

Conservation of Biodiversity
The Group recognizes that biodiversity conservation is an important management issue. Mining operations, in particular, interact closelywith local ecosystems. This interaction requires careful consideration, and we carry out various initiatives as appropriate.

Biodiversity Risk Assessment
Using the Integrated Biodiversity Assessment Tool (IBAT), we
surveyed a 5-kilometer radius around each of our six sites inJapan to determine whether protected areas exist in the vicinityof our sites. Our assessment revealed no areas identified asstrict nature reserve, wilderness areas, national parks, or naturalmonument or feature (Ia, Ib, II, III: See the table to the right).

Category I a
Category I b

Strict nature
reserve
Wilderness
area

Protected areas managed primarily forthe purpose of academic research or
wilderness conservation

Category II

National park

Areas managed primarily for ecologicalprotection and recreation

Category III

Naturalmonument orfeatureAreas managed primarily for theprotection of special natural phenomena

Category IV

Habitat/
speciesmanagement
area

Areas managed primarily forconservation through humanmanagement

Category V

Protected
landscape orseascape

Areas managed primarily for landscapeprotection and recreation

Category VI

Protected
area withsustainable
use of natural
resources

Areas managed primarily for thesustainable use of natural ecosystems

Sustainability Report 2023 62

Section 3 Materiality and ESG Management

Materiality 1

Contributing to Environmental Conservation

Environment

Management Operations at Closed Mines

Forest Maintenance Activities in Japan

Since our founding in 1905, the JX Metals Group has been
engaged in mining operations across Japan. By ensuring a
steady supply of nonferrous metals and other resources, we
contributed to Japan’s economic growth. In Japan, however,operations have ceased in nearly all mines as their mineral resources have dried up. Still, in closed mines, we provide acidmine drainage (AMD) treatment and work to maintain and preserve the natural environment.
JX Nippon Mining Ecomanagement, Inc. oversees theclosed mines managed by the Company. The work mainly consists of detoxifying acid mine drainage (AMD) and maintaining
and preserving the tailings dams and galleries of the mining
sites. AMD occurs when rainwater or other water comes into
contact with materials such as copper concentrates remaining
after the mine is closed or the rubble and slag of tailings dams.
Since AMD contains metals and is highly acidic, treatment facilities have to operate 365 days a year. As for tailings dams,
construction is underway to handle the recent flooding in areasof frequent rainfall and toadapt to large earthquakes.
Through the management ofthese closed mines, we are
striving to preserve the natural environment.

The Group has been promoting reforestation activities throughout Japan, especially at the sites of closed mines. Employees
and their families participate in these activities to communicate
the importance of protecting the local environment throughcontact with nature.

Activities in Japan

Sapporo City, Hokkaido(site of the former Toyoha Mine)

Yoichi County, Hokkaido(site of the former Oe Mine)

Hakodate City, Hokkaido(site of the former Kameda Mine)

Nanyo City, Yamagata(area neighboring the siteof the former Yoshino Mine)

Other Initiatives for Environmental Conservation
Conservation of Water Resources
In the Group’s business activities, we use large quantities ofwater in our copper mining operations, as well as for coolingwater (mainly seawater) used in smelters. We recognize thatwater resources are not only essential for our Group’s businessactivities, but also important resources for the local communities
where our production sites are located. With this in mind, weare doing our best to make sure that these sites make effective
use of water resources by properly monitoring water consumption and exploring methods for reduced use or reuse.
Each manufacturing site monitors its own emission standards, which are stricter than the legally mandated standards.
In addition, each site manages operations appropriately to ensure emission standards are not exceeded.

Koriyama City, Fukushima(site of the former Takatama Mine)

Water Risk Assessments at In-House Plants
Hitachi City,
Ibaraki Prefecture(area neighboring the Hitachi Works)

The drainage canal of the Toyoha Mine
Ishiyama tailings dam, completed in FY2022

TOPICS
Participation in the 16th Mt. Kurakakeyama Cherry Blossom Mountain Development andMaintenance Activity
The 16th Mt. Kurakakeyama Cherry Blossom Mountain Development and Maintenance Activity was held. A total of 26 Company volunteers fromthe Hitachi area participated, including the general manager. Other companies, civic groups, and neighborhood residents in Hitachi City participated, bringing the total number of participants to about 150.
In the Taisho and Showa periods, Hitachi Mine workers planted as many as 10 million trees in the area. As a result, many cherry trees havegrown wild in Hitachi City. The development and maintenance activity has been organized by Hitachi City since 2008 to create a mountain andcherry blossoms for future generations over the next 100 years. This was the first time in four
years that the city held the activity. On the day of the event, under clear, sunny skies, participants were divided into groups, working hard at clearing fallen trees, cutting underbrush, andpruning branches. After about an hour of work, participants received rice ball lunch boxes
from Hitachi City. The local JX Metals office donated apples from Daigo Town. One participant
commented that they looked forward to seeing the cherry blossoms next year.

The Group assesses and confirms how water risks, such as
water shortages, water pollution, and flooding associated withclimate change, affect each production site. We use Aqueduct
Water Risk Atlas, a water risk assessment tool provided by theWorld Resources Institute (WRI), to identify what water risks arepresent.
In fiscal 2022, we assessed six of our main production sites
in Japan. None of the sites were found to have high water riskin the assessment.

Detoxification Treatment of Equipment
Containing PCBs*
The Group contributes to environmental conservation by detoxifying hazardous waste through our treatment businesses for
low-concentration PCBs and asbestos. In 2014, JX Metals
Tomakomai Chemical Co., Ltd. became the first firm in Hokkaido
to receive certification from the Minister of the Environment asa detoxification facility for treating low-concentration PCB waste.
In addition, JX Metals Environmental Services Co., Ltd. is engaged in the melting and detoxification of asbestos. The company treated approximately 2,800 tons of waste asbestos infiscal 2022.
We are also proceeding with treatment of Group-owned
equipment with high-concentration PCBs at the Japan Environmental Storage & Safety Corporation (JESCO). We plan to complete the treatment of this equipment by the prescribed disposal
deadline. In addition, we are planning the disposal of equipmentwith low-concentration PCBs through licensed low-concentration PCB treatment contractors such as JX Metals Tomakomai
Chemical Co., Ltd.; this disposal is scheduled to be completed
by fiscal 2024, two years before the disposal deadline.
* Polychlorinated biphenyls (PCBs): Substances that were often found in insulating oils
for transformers and capacitors, as well as in pressure-sensitive photocopiers, due totheir excellent electrical insulating properties. However, their toxicity has now led to aban on their new manufacture and import.

Proper Management of Chemical
Substances
The Group has voluntarily established chemical substance management standards, and we strive to mitigate the harmfulnessof these substances by controlling their use. In addition, theGreen Procurement Guidelines clearly identify substances thatmust not be included in manufacturing processes, materials, or
equipment, and we ensure our suppliers are aware of these.
Furthermore, we strive to provide safety information to our customers and all other product stakeholders.

Rotary kiln incinerator at JX Metals Tomakomai Chemical Co., Ltd.

General Manager Suzuki was interviewed by cable TV
station JWAY

Participant group photo

63 JX Metals Corporation

JX Metals volunteers pruned and cleared brush

Sustainability Report 2023 64

Section 3 Materiality and ESG Management
Environment

Environmental Management
JX Metals Group Basic Environmental Policy
As a comprehensive manufacturer of nonferrous metals and advanced materials, the JX Metals Group is rising to the challenge ofinnovation in the productivity of resources and materials. Committed to compliance with environmental regulations, we carry out thefollowing initiatives in order to proactively strive for environmental conservation on a global scale, including measures against global
warming, and contribute to building a sustainable society.
1. We will contribute to achieving a decarbonized society by promoting technological innovation and energy transition and aiming for zero
greenhouse gas emissions.
2. We will supply environmentally-friendly advanced materials to support the growth and advancement of society.
3. We will promote resource recycling and aim for zero emissions in all our business activities.
4. We will thoroughly raise each employee’s awareness of environmental conservation through environmental education, leading to businessactivities with less environmental impact.
5. We will share information on environmental conservation activities with stakeholders and seek to operate in harmony with society.

Compliance With Environmental Laws andRegulations
Through steady operation of environmental management systems, the Group works to ensure compliance with environmental
laws and regulations. The Environment & Safety Department at
the Head Office monitors and supervises the state of complianceand reports to the ESG Committee through the Safety andEnvironment Committee. At their annual meeting, environmental
management supervisors work to strengthen our compliancesystem by providing information on legal and regulatory trends
and reporting on the status of compliance at each operatingsite. We additionally reinforce employees’ knowledge of laws
and regulations by holding rank-specific education and training
regularly at the Head Office and operating sites.
In fiscal 2022, there were no adverse dispositions from regulatory authorities (including license revocation, orders to cease
operations, orders to cease use of facilities, orders for improvement, fines, etc.) for violations of environmental laws andregulations.

Establishing an Environmental Management
SystemThe JX Metals Group has established environmental management systems in line with ISO 14001 standards for ensuring
achievement of the Action Plan for Environmental Protection,
which was drawn up to reflect the Basic Environmental Policy.
A multilevel organizational structure has been created, including
various committees and subcommittees, in which everyone,from senior management headed by the president to employees
at operating sites and affiliated companies, works together topromote environmental conservation and mitigate environmental
risk. No environmental accidents occurred in the Group in fiscal
2022.
Operating Sites That Have Obtained
ISO 14001 Certification(as of March 31, 2023)

65 JX Metals Corporation

43 Operating sites(Japan: 27, overseas: 16)

Environmental and Safety Auditing
Individual operating sites implement internal environmental audits at least once a year. In addition, they periodically undergo
environmental and safety audits by the Environment & Safety
Department of the Head Office. Audits were conducted at 19
business sites in fiscal 2022.
Activities in the areas of health and safety and environmental
conservation are planned, promoted, and reviewed by the Safety and Environment Committee, an organization under the ESG
Committee. The Safety and Environment Committee meetsonce every six months.

SocialMateriality 2

The excellent properties of the major base metal of copper and a variety of minor and precious metals have supported the evolutionof electronic devices. The JX Metals Group continues to pursue technical rationality and efficiency, as well as make improvements in
product quality and properties of these materials, so we can rapidly offer society products and technologies supporting the coming
data society and IoT/AI society.

Developing Advanced
Materials
An environmental &safety audit at IsoharaWorks

Pursuing Digital
Transformation (DX)

Pursuing Open Innovation

Building a Development
Framework and Fostering
Development Personnel

Efforts to Cultivate the
Next Generation

P70

P72

P75

DX

Promoting CSR Purchasing
The Group has set a Green Purchasing Policy, aimed at reducing
environmental and other social impacts when procuring materials and equipment. Based on this policy, we have drawn up
Green Purchasing Guidelines setting out specific requirements
for choosing suppliers. These guidelines contain requirementswith which we ask our business partners to comply. These
conditions apply to all suppliers.
We confirm supplier compliance with these guidelines
through our CSR Procurement Questionnaire survey. In fiscal
2022, 85% of suppliers responded to our survey.

Provide Advanced Materials That Support
Lives and Lifestyles

P67

KPIs and Progress

P67

Assessment:

Achieved/Steady Progress

KPI

FY2022 Results/Progress

Develop advanced
materials needed by the
IoT/AI society

In order to capture growing demand, we have announced a series of production
capacity expansion plans, including the construction of new plants and siteacquisition, as well as measures to strengthen our supply chain. Continuing fromfiscal 2021, we have pursued open innovation through collaboration with companies
and universities to develop advanced materials needed by the IoT/AI society.

Build a framework to
support technologybased management

With the goal of continuously generating innovative technologies and products fortechnology-based management, we have built a framework for development andworked to foster development personnel to generate new innovations and diversify
human resources.

Not Achieved

Assessment

Sustainability Report 2023 66

Section 3 Materiality and ESG Management

Materiality 2

Provide Advanced Materials That Support Lives and Lifestyles

SocialIoT & AI 6-Year Plan Implementation

Developing Advanced Materials
In order to contribute to the development of a sustainable society, the Group relentlessly pursues innovation by advancing and utilizingcore technologies accumulated to date, as well as co-creation with outside resources.
ReferenceSpecial Feature 1
Contributing to Sustainable Societies Through Advanced Materials ⇒P27-32

Since 2017, we have pursued an IoT & AI 5+1-Year Plan. In fiscal
2023, we formed a new IoT & AI 6-Year Plan to advance DX
across the Group. This plan includes the digitization of information and processes to date (digitization) and the digital conversion of information and processes (digitalization). In addition, theplan calls for optimizing the entire supply chain in light of chang-

IoT & AI 6-Year Plan

Pursuing Digital Transformation (DX)IoT & AI 6-Year Plan

We pursue DX through measures to optimize and automate every division and corporate department, aiming to establish a foundationto achieve the ideal stated in our Long-Term Vision 2040 of becoming a technology-based company. We leverage new technologies
in each department of the Technology Group that supports these efforts and engage in company-wide measures to achieve this technological transformation.

JX Metals DX Structure

New businesses and expanded profits

Competitiveness and efficiency

Division DX(Iot & AI 6-Year Plan)
Cross-Division Support

ESG management(carbon neutrality, etc.)

Digitize Information, Automate Processes at Each Location (Continue and Improve Existing Measures)
Production control
automation andefficiency

Automate, improve
operations/quality
control

Predictive
Product development
maintenance,
efficiency,
facility maintenanceadvancement• Advanced materials• ESG compliance(2) Digitalization processes through IoT and AI(1) Digitization of information

Standardize across divisions/company
via 5+1 Year Plan measures

Reduce hazardous work
Security and safety

Digital Technology Use,
GovernanceDX and Infrastructure
Development

Technology GroupDX Implementation

Evolution of Core Technologies
and Internal Co-Creation

Contribution to Division
SCM*1 Efficiency

High-Quality,
Value-Added Products

Materials innovation via
state-of-the-art simulation
and analysis

Advanced use of
procurement system

Quality control system
via SaaS

New Equipment
and Factory
Energy Conservation
Visualization of
all in-factory
information

Technical personnel assigned
to front lines

Governance improvements,
including affiliates anddomestic group companies

Quality control awarenessvia standardizationand simplification

New equipment andinvestment decisions
for new businesses

Paperless, streamlined
Work-style improvement

Cultivate New Businesses
via New Technologies
IPL*2 and advanced
patent search•Solutions to customer
issues, etc.

development(3) Strengthen• Product feedback
competitive foundation • Traceability

Customer added-value

Measures for Company-Wide and Cross-Location Optimization
Strengthen SCM*1 via
integrated data management(including new plants)(4) Provide value-added
services to customers

IoT &AI 5+1-Year Plan

Transforming Into a Technology-Based Company

JX Metals Long-Term Vision

es in our businesses, strengthening our competitive foundation,
creating value for customers, and addressing ESG issues suchas decarbonization, etc. As in the past, our Technology Group
exercises overall control, while subcommittees established ineach division act as the main force in driving implementation.
Digital innovation staff in the IT Department serve as the secretariat providing implementation and technical support.

FY2017-FY2019

Gather and digitize operational information, shift away from paper media

FY2020-FY2022

FY2023-FY2028

Foundation Supporting DX● Exploring Cutting-Edge Technologies

We conduct proof-of-concept tests to verify the newest technologies and consider applicability to our operations. Test content includes
the application of optimization calculation technology to planning tasks using quantum annealing technology and AI-camera-based
human detection technology.

Quantum Annealing Used in Production Planning

IPL*2 staff assigned
to each division

Strengthen DX
Implementation
SystemBusiness Process
Reform/Standardization

Explore, Use
Cutting-Edge
Technologies

Data Use,
Open Source

Develop DX Human
Resources

Enhance Security

IT Strategy Meeting
discussions and plan
execution

Production processreview andback-office functions

Use of digital technology
and mechatronics
functions

Adopt group-wide
data-use infrastructure

Data scientist
training, practiceZero Trust Network

Central management ofdivisions, subcommittees
and secretariat

Office work-style reformand ERP*3 study

Survey, verify,
use trends in cuttingedge technologies

Data-use training

DX information sharing
meetings, case studies

Legacy system
maintenance*1 SCM (Supply Chain Management): A management method to optimize all processes through the central control of everything from raw materials procurement to manufacturing andsales.
*2 IPL (Intellectual Property Landscape): Utilizing IP information analysis for management.
*3 ERP (Enterprise Resource Planning): A concept that aims to improve and optimize overall management efficiency through the integrated management of human, physical, and financial
resources.

Calculation results

Input
Program
Constraints(deadlines, pre-processing progress, etc.)

Parameter adjustments
Operator

Quantum computer

OutputProduction schedule

We adapt optimization techniques to highly challenging planning tasks that combine various constraints, etc. In this way, we avoid
dependence on the accumulated skills of veteran staff and improve work efficiency.

67 JX Metals Corporation

Sustainability Report 2023 68

Section 3 Materiality and ESG Management

Materiality 2

Provide Advanced Materials That Support Lives and Lifestyles

SocialProof-of-concept tests of automated humandetection on forklift trucks equipped with AI
camerasPursuing Open Innovation
We are promoting co-creation in a variety of formats, including collaboration with unique technologies held by Group companies, joint
research with universities and other research institutions, and partnerships with external companies. These activities aim to build asystem for generating new technologies and value.

Investment in North American Venture
Capital Fund, Accelerating Collaborations
With Startups

AI cameras are positioned in all directions to detect humans,
strengthening and making safety measures more reliable● Strengthening DX Infrastructure (Zero Trust

security management at the terminal and user level that cannot
be achieved with conventional perimeter security networks,
thereby raising the security level of the entire Group in a uniform
manner. This system is already in operation at JX Metals Head
Office and operating sites, and will be rolled out to Group companies in Japan and overseas in stages.

Network)
In response to changes in work styles amid the COVID-19 pandemic and requests from business partners to strengthen security measures, the Group has been upgrading our own network based on the concept of zero trust. This is the most advanced cloud-based security service available today, enabling

Next-Generation IT Infrastructure Using a Zero Trust Model

Public cloud

SaaS (Software as a Service)

Internet

SASE(Secure Access Service Edge)JX Metals Head Office/branchesPlants/Smelters

Data centers● Developing DX Human Resources

Beginning in fiscal 2019, we have been working to enhance ourdigital resources and strengthen their training. In data scientist
education, we have expanded our training programs according
to the level of each employee, such as beginner programs foryoung employees and intermediate programs for mid-career
employees. We began literacy training for all employees in fiscal

69 JX Metals Corporation

Affiliates

JX Metals Corporation invested as a limited partner in Pangaea
Ventures Impact Fund, LP, a venture capital fund managed by
Pangaea Ventures. Pangaea Ventures is based in Canada andthe U.S. The purpose of the fund is to contribute solutions tosocial issues such as decarbonization, climate change, andwater resources by reducing CO2 emissions by 550 million tons
by 2030. The fund will accomplish this objective by investing instartup companies with innovative technologies. The fund has
an extensive network of startups in advanced materials and hardtech in North America.
Through this investment, we intend to accelerate open innovation and new business development in North America, tying
investments to collaborations with North American startup companies that boast superior technologies.

Investment in German Company,
Collaboration in Metal Nanowires
JX Metals made the decision to invest in NanoWired, a German
startup. Germany is home to a flourishing environment in cutting-edge research in IoT, AI, and more. NanoWired develops
technologies and manufacturing equipment for growing nanowires of less than 1um diameter on various substrates. Growing
nanowires on substrates enables bonding at room temperatureor lower and at higher density in a shorter time, making it possible to achieve high electrical and thermal conductivity andbonding strength.
Through this investment JX Metals intends to strengthen thisrelationship with NanoWired and undertake various forms ofcollaboration. Examples include providing materials required fornanowire growing processes, such as copper foil and plating
materials; joint development focused on future social trends,
including those in the semiconductor mounting field, where
growth is expected to accelerate; and application of nanowire
technologies to the JX Metals products.

Nanowires grown on metal surfaces● Speaking at the German-Japanese Innovation

Initiative 160 Pre-EventOn December 5, 2022, we presented the collaboration between
JX Metals and NanoWired as a best practice case study at theGerman-Japanese Innovation Initiative 160 pre-event held in
Berlin, Germany.
The Japan External Trade Organization (JETRO) and theGermany Trade and Invest (GTAI), in cooperation with the Japanese and German governments and industry support organizations, launched the German-Japanese Innovation Initiative
160 in December 2021. The first event marked the 160th anniversary of the signing of the Treaty of Amity and Commerce
between Germany and Japan and aims to achieve the SDGs bysolving climate change and other global issues. In the year orso since its inception, the event selected five cases as bestpractices, including the JX Metals collaboration with NanoWired.
In addition to in-person participation, the event was broadcast live online, closing on a high note with more than 100 participants from around the world.

Mobile users

2022 and launched workshops at operating sites in fiscal 2023.
We are also working to improve the level of our DX education
by strengthening cooperation with educational institutions, suchas joint research with Tohoku University and dispatching employees to the Shiga University Graduate School of Data
Science.

Frankfurt Office General Manager Tsuchiya speaking from the podium

Sustainability Report 2023 70

Section 3 Materiality and ESG Management

Materiality 2

Provide Advanced Materials That Support Lives and Lifestyles

SocialActivities of the JX Metals Endowed Unit
Despite growing needs for a stable supply of nonferrous metalmaterials in recent years, the pool of researchers and engineers
in Japan working in fields related to smelting, refining, and recycling nonferrous metals has been on the decline. In response tothis situation, JX Metals, in collaboration with the Institute ofIndustrial Science, The University of Tokyo, launched the Endowed Research Unit for Nonferrous Metal Resource Recovery
Engineering (JX Metals Endowed Unit) in 2012. The purpose ofthis organization is to develop new environmentally friendly recycling technologies for nonferrous metals while also developing
the human resources responsible for the work in this field.
The unit began Phase 3 (five years) in January 2022. In
Phase 3, we are developing activities to promote a further understanding and awareness of the importance and future of thenonferrous metals industry, as well as focus on activities forrealizing the SDGs and for STEAM education* to nurture the next
generation.
* STEAM education: An educational concept that combines the initial letters of fivewords: Science, Technology, Engineering, Art, and Mathematics. This concept aims todevelop logical thinking and creative skills that lead to problem-solving in the real world

JX Metals Endowed Unit
■ Members (FY2022) * Positions and other information as of FY2022
Project Professor Okabe Toru H.
Director General, Institute of Industrial Science, The University of
Tokyo
Professor, Research Center for Sustainable Material Energy
Integration
Project Professor

Professor, Faculty of Science and Engineering, Waseda University
Professor, Graduate School of Engineering, The University ofTokyo
Project Professor, Institute of Industrial Science, The University ofTokyo
Project Professor● Received the 2022 Shokumon Award from the

University of Tokyo
In recognition of activities at the JX Metals Endowed Unit, we
received the 2022 Shokumon Award* from the University ofTokyo. The University of Tokyo’s Shokumon Award was established in 2002 to recognize individuals, corporations, and otherorganizations that have made major contributions to the growthof The University of Tokyo, either through volunteer work or
endowed courses and research centers. The award was given
in recognition of our outstanding contributions to creating acenter for research, exchange, and education that has attracted
outstanding human resources and advanced information fromall over the world for many years.

Kurokawa Harumasa

Project Professor, Institute of Industrial Science, The University ofTokyo
Project Professor

Sugano Tomoko

Professor, Institute of Industrial Science and Deputy Director
General, Division of University Corporate Relations, The Universityof Tokyo
Director, Public Relations Strategic Planning Office, Division for
Strategic Public Relations, The University of Tokyo
Patent Attorney
Project Lecturer

At the press conference for the start of Phase 3
From left to right: Executive Officer Suwabe, Senior Executive Officer Tani, Project
Professor Kurokawa, Project Professor Tokoro, Deputy Chief Executive Officer
Sugawara, Director General and Project Professor Okabe, Project Professor
Sugano, Project Lecturer Ouchi

Tokoro Chiharu

Ouchi Takanari

Lecturer, Institute of Industrial Science, The University of Tokyo
Lecturer, Research Center for Sustainable Material Energy
Integration(Yamanaka Shunji, distinguished professor at the University ofTokyo, joined as a project professor in April 2023)■ Main Activities in FY2022▶ November 18, 2022
Science Council of Japan Open Symposium (cosponsored by
JX Metals Endowed Unit)
Why the SDGs? SDGs and Carbon Neutrality in Resource andMaterial Circulation▶ January 6, 2023
10th Precious Metals Symposium Frontier of Extraction andRecycling Technology for Precious Metals

71 JX Metals Corporation

The Group is working to build a framework for the continuous generation of innovative technologies and products, such as decarbonization technologies, by promoting DX support in the areas of production and development, developing platforms for the creation of
new development ideas, and strengthening development process management. In addition, we are fostering personnel responsible
for technology development and technology-based business development.

Strengthening Internal Processes for New
Business and Technology Development
We have introduced the Stage-Gate Process as our management system for business development. In addition, we established the Idea Seed Bank as a platform for generating topics
and ideas. These efforts are handled by the Advanced Technology & Strategy Department, a department dedicated to theplanning and formulation of Group-wide technology strategies.
● Introduction of the Stage-Gate Process

In promoting new development themes, we have introduced theStage-Gate Process, which divides the development process
into multiple stages. We use Stage-Gate Process for applications from discovery of medium-to long-term topics to commercialization for new products and technologies. The effectivefunctioning of this Stage-Gate Process promotes activities that
continuously generate innovative technologies and products,
such as decarbonization technologies.
● Development of Platforms for Generating Ideas

The Idea Seed Bank (ISB), one of the Advanced Technology &Strategy Department’s initiatives, is a platform to encourage
employees to generate and cultivate ideas. It provides support
for the conception of ideas, support for internal reviews, anddiscussions among members. It also offers a forum for employees from different departments and sites can interact with eachother, providing them stimulus to give shape to their own ideas.
One of these ideas generated at the ISB has even been approved as a development theme for one of our divisions in August 2021.

Internal Training Held by the Advanced
Technology & Strategy Department
In addition to human resources development through the Idea
Seed Bank, the Advanced Technology & Strategy Department
holds cross-organizational study groups to help each individual
member of the Group understand the JX Metals Group andproducts outside of their responsibility, and to promote cooperation between divisions beyond their own. At these cross-organizational study groups, all employees learn about each division’s business lines, products, and services. Through active
Q&A and discussion, each employee gains a better understanding of the Group, which in turn leads to wider communication
with external stakeholders. Through these efforts, we are developing human resources who can play an active role in finding
potential co-creation partners, exploring new development
themes, and further expanding existing businesses.

VOICE
Comments From an ISB Member
Even when joining the ISB, I was never confident that I could offer new ideas easily. Or even if I did
offer a new idea, I never believed it would become a reality. But before anything else, IBS provided an
opportunity for new relationships. It started with a pleasant chat at a lunch meeting. After attending aseminar on ideation, members worked together to come up with ideas for solving business issues intheir own departments. I look forward to engaging in exciting work together with my new friends.

JX Metals Corporation
NPM Promotion Department

Shibuya Norimitsu* Shokumon is the name of the castle gate in the capital of the ancient Chinese state Qi(now Shandong Province) during the nation’s civil war era (403-221 B.C.). The nameof the award is derived from a legend that the king of Qi treated scholars well, which
led to the gathering of the wisest minds in the capital of Qi and the flourishing of academic activities.

Presentation of the Shokumon Award
plaque (Prof. Fujii Teruo, President of The
University of Tokyo (left) and Chairman
Murayama Seiichi, JX Metals (right))

Building a Development Framework and Fostering Development Personnel

Activities of the JX Metals Endowed
Unit (Japanese Only)
http://www.metals-recycling.
iis.u-tokyo.ac.jp/

Sustainability Report 2023 72

Section 3 Materiality and ESG Management

Materiality 2

Provide Advanced Materials That Support Lives and Lifestyles

SocialBasic Policy on Intellectual Property
StrategyIntellectual property is an important asset for the technology-based company that the JX Metals Group aims to be. In fiscal

2022, we formulated the JX Metals Group Basic Policy on Intellectual Property. Under this policy, we engage in intellectual
property activities throughout the Group.

■ JX Metals Group Basic Policy on Intellectual Property
We, the JX Metals Group, recognize that intellectual property is an important asset and perform activities in accordancewith the following policy in order to contribute to the development of a sustainable society as a technology-based firm.
1.We will reflect our management, business, and technical strategies in the performance of intellectual property
activities through cooperation between all divisions including the management, the business division, thetechnology division, and the intellectual property division.
2．
 e will establish a competitive advantage in terms of technology by appropriately acquiring intellectual propertyWrights and managing knowhow.
3．
We will promote co-creation with various external partners by cooperating with them in connection withintellectual property.

Developing Intellectual Property Human
Resources
The development of intellectual property human resources isimportant to carry out our intellectual property activities. In theinterest of the appropriate acquisition, protection, and utilizationof intellectual property and management of intellectual property
risks, the Group provides all employees, including clerical staff,
with intellectual property education based on a systematic program and using our own teaching materials.
In addition, in order to address intellectual property work thatis becoming more sophisticated every year, the Intellectual Property Department encourages the acquisition of patent attorney
qualifications and intellectual property analyst certifications fromthe Association of Intellectual Property Education, etc. The department conducts study groups internally to improve practicalskills and enhance expertise further.

Status of Held Patent Rights
Our Group is actively promoting research and development tobecome a technology-based company. In line with our businessstrategy, we conduct appropriate rights-acquisition activities inJapan and overseas for inventions generated in the course of
research and development.

Number of Patents Held
(Patents)

Japan

Overseas

8,000
6,459
6,000

4,233

4,000

2,000
2,226

We will take appropriate measures, including asserting our rights, against any suspected infringement of
4．
intellectual property rights owned by us in order to protect our technologies and products.

0

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’13

’14

’15

’16

’17

’18

’19

’20

’21

’22

’23 (Year)We will respect the intellectual property of other parties and appropriately respond to the risk of infringing the5．
intellectual property of other parties.

Using Intellectual Property Information

Initiatives for Promoting Invention

The JX Metals Group regards intellectual property information(patent information, etc.) as big data useful for understanding
technological trends. We utilize intellectual property information
not only for the purpose of preventing infringement and determining patentability, but also for various other purposes. For
example, by combining internal and external patent information
with business and market information, we conduct research andanalysis (IP landscape) to anticipate changes in customer needs
and technology trends, propose business strategies, contributeto the creation of development themes, and search forpartners.
We also encourage the use of intellectual property information by others besides personnel in charge of intellectual property directly. In fiscal 2022, we held internal workshops withexternal lecturers, using hypothetical examples to create a mock
IP landscape with IP and marketing personnel.

In accordance with the Patent Act, the Group has established
the Regulations Concerning Handling of Employee Inventions.
In addition to incentives at the time of application and registration, we have established our own unique system to award inventors of profitable patents and inventors of outstanding inventions to encourage development and invention and promote
activities as a technology-based company.
In fiscal 2022, five inventions were eligible for awards, including the development of new copper foil, increased copper foil
productivity, and new sputtering target. In addition, we also
recognize inventions that are kept secret as expertise, as wellas patents.

Intellectual property training (online)

Leveraging Intellectual Property toContribute to the SDGs
Since fiscal 2021, we have been participating in the SDGs Project, an activity of the Japan Intellectual Property Association(JIPA).
In fiscal 2022, we conducted studies and activities to contribute to the SDGs through intellectual property, working together with other participating companies. We continue to leverage our intellectual property to contribute to the SDGs throughthis project and other activities.

Fiscal 2022 award ceremony

A workshop in progress

73 JX Metals Corporation

Sustainability Report 2023 74

Section 3 Materiality and ESG Management

Materiality 2

Provide Advanced Materials That Support Lives and Lifestyles

SocialColumn(3) Technology and society

Efforts to Cultivate the Next Generation
In order to keep stability in securing and supplying irreplaceable nonferrous metal resources and materials, it is essential todevelop human resources who can take on future challenges. The JX Metals group provides opportunities for young people,
from elementary school to university age, to engage in a variety of hands-on and practical activities to create opportunities tolearn about nonferrous metals.

Basic Approach to Educating the Next Generation(1) Everyday life and science
Explaining the wonders aroundand providing fascinating
experiences of science(2) Science and technology(3) Technology and society

Drawing the connection between
the science and scientificknowledge learned in schoolwith the technologythat supports industry

Learning the role of technology
in solving social issues

Technology
Fundamental
sciences

A Collaboration of Nonferrous Metals and Comedy
Society
Industry

Applied sciences

JX Metals has been a regular member of the Platform for Learning Innovation-Japan (PLIJ) since its establishment. PLIJ is anorganization established by the Cabinet Office and the University of Tokyo to enrich and promote STEAM education content.
Together with Yoshimoto Kogyo, another PLIJ member, we created content and videos in a cross-industry collaboration of
nonferrous metals and comedy as part of our work to develop human resources who will lead the future.
* STEAM education: An educational concept that combines the initial letters of five words: Science Technology, Engineering, Arts, and Mathematics.

EverydayElementary school students

On July 15, 2022, we invited 32 students and eight faculty members of the Departmentof Materials Engineering to visit our head office. Through a simulated experience of theSaganoseki Smelter & Refinery’s operations using virtual reality (VR), participants learned
about the processes by which copper and other nonferrous metal materials are provided
to society and contribute to social development. We also held a workshop titled A FutureParticipants experienced a refinery tour via VR
With Next-Generation Communications and Sensors. The workshop addressed
next-generation technology and product development and included lively discussions.
The experience was valuable for us as well, as we gained fresh insights from the students.

Initiatives to Popularize STEAM* Education！

?

To the next generationof society’s leaders

Major Lecture at the Department of Materials Engineering, Graduate Schoolof Engineering, The University of Tokyo
Head Office Tour for University Students

Junior high school students

High school and college students❶ Learn With Paraderu Manga! The Unknown World of Copper

As the first part of the collaboration project, we published a paraderu manga together with artist Honda Osamu, The Unknown World of Copper. The term paraderu is a combination of words meaning flip book and pop-up, and paraderu
videos have become very popular. This particular work depicts clearly how copper
is manufactured and utilized, from recycling to resource circulation, in a comicalmanner.

(1) Science and everyday life
Copper Study Event in Collaboration With the Shiba Regional
City Office in Minato CityOn July 30, 2023, we sponsored the Shiba Nature University, an eventfor elementary school students organized by the Shiba Regional City
Office. As part of the event, we hosted a copper study event. This year’s
event marked the fifth such school. We invited 19 pairs of elementary
school students and their parents (40 participants) to our head office tolearn about the properties of copper through fun quizzes, videos, andexperiments. In the post-event questionnaire, participants commented
that they became more familiar with copper.

❷ Educational Variety Shows by Comedians

JX Metals employees teach about copper recycling

Another part of the project consists of quizzes and on-location refinery videos
presented by popular comedians, including Chocolate Planet, Kaeru Tei, and Rice.
The program content educates viewers in an enjoyable way, communicating a wide
range of copper-related knowledge, from copper’s properties and smelting methods to the appeal of copper materials that support today’s digital society and theimportance of resource recycling.

(2) Science and technology
Copper Laboratory
On September 3, 2022, the International Copper Association, Japan
Copper Development Association, and Leave a Nest Co., Ltd. co-sponsored a lab event called The Surprising Power of Everyday Copper:
Super Antibacterial Properties! The event was held at the Square Lab
space in our head office. A total of 13 junior and senior high school
students participated in experiments on the super antibacterial properties of copper and copper alloys, which inhibit the growth of bacteria.
Participants also experimented on the antiviral performance of copperand copper alloys, which inactivate viruses (rendering them less infectious). At the workshop held after the experiments, students proposed
unique ideas for use in everyday life. Ideas included applying copper-containing film to mold-prone areas in bathrooms and on mirrors
and coating keyboards with copper.

75 JX Metals Corporation

The JX Metals Prize at the Tokyo University of the Arts

Artist: Tong Haolin
Title: Armadillo
A whole-body skeleton of a Brazilian
three-banded armadillo used as amotif to express a rounded charmand gallantry characteristic of askeletonWe established the JX Metals Prize to recognize outstanding students who represent the next generation of metal casting artists. This annual award is given to one
student enrolled in the Department of Metal Casting at the Tokyo University of theArts who achieves particularly outstanding academic results.
We held the ceremony for the JX Metals Prize 2022 on October 25, 2022. This
year’s winner was Tong Haolin, a second-year student in the MFA program at theuniversity’s Graduate School of Fine Arts. By supporting the development of theart of metal casting, we continue to spread an understanding of the appeal andimportance of metals, contributing to the wider recognition of culture and the arts.

Workshop on the use of copper

Sustainability Report 2023 76

Section 3 Materiality and ESG Management

Materiality 3

Create Attractive Workplaces

SocialMateriality 3

Create Attractive Workplaces

Ensure Safety and Promote Health

Dynamic workplaces where employees can demonstrate their unique capabilities and be healthy in mind and body are essential
for any enterprise seeking sustained growth. The JX Metals Group strives to create workplaces that are attractive from many
perspectives. Examples include our work to ensure occupational health and safety, provide an appropriate personnel evaluation
system, and offer human resources training.
Ensure Safety andPromote Health

Develop Human
Resources

Recognizing that the safety and health of our employees is the foundation for sustainable growth, the JX Metals Group is committed
to creating a workplace environment that ensures safety and promotes health.

JX Metals Group Basic Policy on Health and Safety
We place the highest priority on ensuring the health and safety of people working in all areas of business operations at the JX Metals Group

Promote Diversity

and create attractive workplaces by providing safe, secure, and healthy working environments.
1. We will comply with all laws and regulations relating to health and safety, establish voluntary standards required to achieve compliance, andrigorously manage and adhere to such standards.
2. We will strive to continuously improve and enhance industrial health and safety management systems and achieve health and safety goals.
3. We will actively provide information and education in order to develop human resources that think and act spontaneously, and raise health andsafety awareness throughout the organization.
4. We will identify hazards in all areas of business operations, work to eliminate such hazards and reduce risk, steadily achieve annual accident

P78

KPIs and Progress
KPI

P80

reduction targets, and ultimately aim to ensure no accidents ever occur.

P81

5. We will work to maintain and improve employees’ mental and physical health by ensuring good communication and comfortable working
environments and taking steps to maintain health and prevent sickness.

Assessment:

Achieved/Steady Progress

Fiscal 2022 Results/Progress

Reduce serious
occupational accidents:
Less than 0.70
accidents (four days ormore of lost work time)per 1,000 employees in
FY2022

In fiscal 2022, the annual rate was 0.74 per 1,000 employees. With solemn
consideration for the accidents that have occurred, we constantly strive to improve
our health and safety management system and prevent occupational accidents byimproving the effectiveness of our risk assessments and enhancing the ability of
employees to investigate the causes of accidents.

Increase annual leave
utilization rate: 80% ormore in FY2022

Despite only reaching 77.1%, the annual leave utilization rate improved versus theprevious fiscal year thanks to our ongoing efforts to create a work environment thatencourages employees to take vacation days and to provide more days where
employees are encouraged to take leave. Moving forward, we will continue to takeactions to encourage employees to take more vacation.

Implement initiatives torevitalize people andorganizations

We are also taking action to build an environment in which diverse human resources
can play an active role. To do so, we enhanced a variety of measures for ActivityBased Working (ABW) and vitalizing communications, secured and utilized both
highly specialized and senior citizen employees, and introduced a new personnel
system.

Initiatives for healthpromotion: Cancer
screenings for 70% of
employees or more in
FY2022Each operating site formulated measures to increase the screening rate and held
seminars on cancer prevention by medical specialists. These and other efforts
tailored to their respective environments resulted in a 78.1% screening rate, asignificant improvement from the previous year (63.1%). For fiscal 2023, we arepromoting activities aimed at further increasing the screening rate by carrying out
e-learning for all employees, distributing leaflets recommending cancer screening,and holding cancer prevention seminars.

Maintain and improvehiring rate for disabled
persons: 2.3% or more
in FY2022

In fiscal 2022, employees with disabilities comprised 2.10% of our total number of
employees. We will continue to maintain and improve the hiring rate for disabled
persons through bolstering the newly-established Cheerful Support Office in fiscal
2021. Furthermore, we will actively provide support and roll out measures for enablingdisabled persons to lead fulfilling social lives.

77 JX Metals Corporation

Not Achieved

Assessment

Organization for Occupational Health and
Safety Management
The Group maintains health and safety committees and otherbodies at operating sites and Group companies in keeping with
the Industrial Safety and Health Act. We have also establisheda system to have discussions with workers, including those fromsubcontractors stationed permanently, within the framework of
our management system. At our head office, the Central Healthand Safety Committee meets once a year, attended by representatives (key safety managers and labor union branch committee chairs) from the divisions and operating sites. The Central
Health and Safety Standing Committee meets five times a year,
attended by standing committee members of the former (safety
managers at each division and the three officers from the Central
Labor Union). We also hold joint labor/management health andsafety visitations (once a year) and Group safety supervisors’
meetings (twice a year) to exchange information on health andsafety. In fiscal 2022, we generally held hybrid in-person/online
meetings in light of the impact of the spread of COVID-19. Joint
labor/management health and safety visitations were held in
person at operating sites with infection control measures inplace.
Environment and safety audits are conducted periodicallyby a team under direct supervision of the president at operatingsites directly run by the Company (including Group companies
within the sites) and major domestic Group companies. Issues
discovered in the audits are reported to the president, and also
notified to the respective operating sites. Audits were conducted
at 19 sites, including four sites for which on-site audits were
postponed in fiscal 2022 due to the spread of COVID-19. No
major issues were identified.

Acquiring ISO 45001 Certification
We had acquired OHSAS 18001 certification at 11 operatingsites in Japan and at two operating sites overseas. However,
we are currently preparing with the introduction of ISO 45001(JISQ 45100) following the abolition of OHSAS in March 2021.
Compared to ISO 45001 (JISQ 45001), ISO 45001 (JISQ 45100)
enables the promotion of Group-wide occupational health andsafety activities that involve more on-site workers. We are revising and creating new management documents including OHS
manuals, and are systematically converting and acquiring newcertifications, aiming to further improve health and safetylevels.
We completed conversion at these sites in fiscal 2021, andhave been introducing this occupational health and safety management system at more sites since fiscal 2022. In doing so, we
aim to obtain new certification at sites yet to be certified.

Management Policy on Health and Safetyfor 2022
The Group formulates the Management Policy on Health and
Safety each fiscal year. The goals and key policy measures are
set based on analysis of health and safety performance in theprevious year. The policy is discussed and approved by theCentral Health and Safety Committee and then promulgatedacross the Group.

Sustainability Report 2023 78

Section 3 Materiality and ESG Management

Materiality 3

Create Attractive Workplaces

Social[Goals][Safety and Disaster Prevention Items]
1. Accidents with lost work days or worse: Zero
2. Targets for managing the number of accidents for the entire Group(1) (Shared domestic/overseas sites) Accidents without lost work days orworse: Reduction of 50% or more of the previous year’s results(2) O ccupational injury rate per 1,000 employees in domestic Group (fouror more lost work days): 0.70 or less (five injuries or less)
3. Fires and explosions: Zero

[Health and Other Items]
1. Occupational diseases: Zero
2. R
 ate of lost work days due to ordinary illnesses: Reduction by 10% ormore from the average in the previous three years
3. Statutory regular health checkups: 100%
4. Cancer screening rate: 70% or more
5. Influenza vaccination rate: 100%
6. T raffic accidents (as perpetrator or victim): Reduction by 10% or morefrom the average in the previous three years[Key Measures]•Promoting inherent safety (strengthening activities to prevent serious
accidents from occurring)• Expanding health and safety education• Strengthening systems for safer construction execution• Maintaining and promoting mental and physical health•Continuing to implement traffic accident prevention (including workrelated traffic accidents)

Safety Education at a Safety Education
CenterRaising Safety Awareness Through Various
Tools

In order to raise the sensitivity to hazard for each and every
employee and enhance their safety awareness, the Group has
established the Safety Education Center, where we conduct
experience-oriented safety education, in Hitachi City, Ibaraki
Prefecture. Here, sensitivity to hazards refers to sensing danger
correctly. Sharpening this sensitivity leads to workers being able
to avoid danger.
Since many of the occupational accidents that have occurred are recurrences of past cases (similar accidents), thecenter has prepared a program to help workers see that potential accidents are always present, and to improve worker understandings of danger and their sensitivity to hazards throughsimulated experiences of past occupational accidents. In addition, we have implemented a new educational curriculum thatutilizes VR technology, enabling students to have hands-on
experience as a victim of an accident or disaster, a situation noteasily simulated in real life. In recent years, while the number ofoccupational accidents among employees has been decreasing,
the number of occupational accidents among employees from
Subcontractors has become an issue. To address this, we haveintroduced midsize education facilities at our core operatingsites to improve the sensitivity to hazards and safety awarenessof not only our Group employees but also those of our Subcontractors. The Safety Education Center and the midsize education facilities work in unison to eradicate occupational accidents
among workers.

The Group strives to ensure the safety and health of all persons
connected to our business, and to elevate safety-first awarenessand sensitivity to hazards. We strive to raise safety awarenessand prevent recurrence of accidents by producing safety educational materials such as disaster reproduction videos, basedon actual accidents and disasters, and safety awareness posters, based on actual accidents that have occurred within andoutside the Group.

VR experiential education

79 JX Metals Corporation

腰痛

安 全基本 ル ー ル 止める・呼ぶ・待つ
トラブル発生（異常）時の３原則「止める・呼ぶ・待つ」❶腰痛防止は職場で取り組む❶『異常』とは、いつもと違う状態、ルール通り仕事が出来ない状態❸台車、補助機器を利用し人力の負担を軽減する❷「止める」
は、作業を即時止める、作業基準通り機械を
止めること
❸「呼ぶ」
は、直ちに上長等を呼ぶこと❹「待つ」
は、勝手に判断せずに、上司の指示を待つこと

STOP!
とめる

CALL!

STAND BY!

your manager.

for further directions.

よぶ

Don't continue working.
作業（さぎょう）をとめる

上長（じょうちょう）をよぶ

まつ❷人力で取り扱える重量を定める❹正しい作業姿勢や動作を実践する

女性❶ 膝を曲げ腰を降ろす❷ 背筋を伸ばし❸ 呼吸を整えて腹圧を加える❹ 膝を伸ばして立ち上がる❺ 不自然な姿勢（前屈、中腰、ひねり、
うっちゃり姿勢等）
を避ける

40% 以下 = 24kg 以下
約24% 以下 = 14.4kg 以下（男性の約60%程度）『職場における腰痛予防対策指針及び解説』（厚労省）「陸上貨物運送事業向け腰痛予防テキスト」
より

連続作業時間、単位時間あたり取扱量を軽減し、適宜ストレッチを実施『止める・呼ぶ・待つ』関連災害
トラブル
処置中に
手指裂傷

故障した門扉を手動で開放時に
足指裂傷

不休（2021年）

We are promoting a variety of measures to improve the mental
and physical health of our employees through a project system
in which all of our operating sites participate. We spread information to employees and conducted e-learnings, aiming to
improve cancer screening rates. Through these efforts, we intend to encourage employees to undergo screenings for early
detection as a way to learn about and strive to prevent cancer.
As a result, the Group-wide average screening rate in fiscal 2022
was 78.1%, up 15% from the previous fiscal year. In addition,
we conducted physical fitness tests to help employees understand their current physical strength, flexibility, and sense ofbalance. In doing so, we aim to motivate all employees to main-

Physical fitness tests

Develop Human Resources
In order to achieve becoming a technology-based company set forth in the 2040 Long-Term Vision, the JX Metals Group is working
to secure and develop human resources capable of creating added value.

ReferenceSpecial Feature 3 Human Capital Management ⇒ P37-42

指示
（しじ）
をまつ

自動化や、補助機器等を使用して人力による負担を軽減

不休（2020年）● Project to establish a health management systemtain and improve their physical fitness.
Regarding mental health, we work to build an environment
in which employees feel comfortable consulting with industrial
physicians. We do this by providing regular opportunities for
employees to meet with these physicians and providing education to responsible parties at each operating site.
We introduced a health management support system as thefoundation to support these activities. This system enables
centralized management of various health checkup results andworking hour records. In addition, we are assigning public healthnurses to all operating sites.

荷物を持ち上げる動作について

職場として人力で取り扱える重量を定める（例）
作業者の体重が60kg程度の場合、取り扱う荷物の重量目安は、
男性

each operating site and reinforcing management aspects toprevent serious occupational accidents. Improving the level ofour risk assessments is an issue that we will continue to workon in the future. Our measures going forward include visualizing
the progress of residual risk management and other risk mitigation, further promoting intrinsic safety measures that incorporate
the concept of machine safety, and training risk assessment
promoters and instructors at each operating site.

トラブル処置中に落下したクランプで手指骨折

休業（2021年）・ いずれの災害も一旦作業を中断し、上長に報告・対処していれば防ぐことができた災害です。

製品袋引き上げ時に腰椎捻挫

不休（2020年）・ 取扱い重量物の規定と安全な作業方法の確認！
・ 腰を十分降ろして重心を低くし、背筋を伸ばし膝を使って持ち上げる！

Actual safety awareness posters in use

Activities in 2022 to Ensure Safety● Risk assessments

Each of the Group’s operating sites carries out its own risk assessment activities based on our occupational health and safety
management system. Risks at operating sites are managed by
implementing PDCA cycles, consisting of hazard identification,
devising accident scenarios, risk assessments, necessary measures to mitigate risk (beginning by considering tangible measures first, and then intangible measures only if tangible measures are unapplicable), and evaluation of the effectiveness of
those measures.
In fiscal 2022, we aimed to further strengthen these risk
assessment activities by focusing on significant residual risks at

Creating a Work Environment That Supports the Autonomous Growth of Human Resources
Creating a workplace environment that encourages the independent and autonomous growth of each employee is essential
to manage human capital. We actively work to create an environment that enables a diverse range of people to work with asense of motivation.
Various mechanisms are in place at our head office, which
was relocated to Toranomon 2-chome, Minato-ku, Tokyo in
June 2020. These mechanisms support the autonomous growthof employees through efforts such as the introduction of ABW*
and the use of ICT tools, based on the following three concepts:
1) Increase productivity, 2) Greater interaction with technology,
and 3) More interpersonal connection. Our innovative officespace aims to enhances our flexible development. Through thisspace, we aim to create an organization that enables employees
to actively interact with each other, shares information acrossthe organization, and creates new proposals and challenges.

Layout configurationthat encourages
meetings and work in
open, non-confined,
spacesEstablishment of a
showroom withhands-on exhibits thatenable an intuitive
understanding oftechnical characteristics, etc.

*Activity-Based Working (ABW): A way of working that eliminates fixed seating and allows workers to choose where they work based on the nature of their work

Sustainability Report 2023 80

Section 3 Materiality and ESG Management

Materiality 3

Create Attractive Workplaces

Social● Systems for childbirth and childcare

Promote Diversity

The Group provides legal standard systems related to childbirth and childcare, and offer our own unique systems as well.

In compliance with relevant laws and regulations in Japan and overseas, the JX Metals Group is pursuing initiatives including the continued employment of senior citizen employees, hiring of persons with disabilities, women’s empowerment, and hiring of non-Japaneseemployees. Here, we are working to create an environment in which diverse employees feel fulfilled and display their abilities fully.

Age 12 - 24mo.

Age 24 - 36
mo.

Extension of work provisions(until third year of elementary school）

Three days of childbirthleave granted for male
employees whose
spouses give birth*May be extended to sixth year ofelementary school in
exceptional circumstances

Additional childbirth
lump-sum benefit

Additional JX healthinsurance benefit +Mutual aid association benefits• Exemption from overtime work

beyond limitations

Return-towork grant payment

Additionalchildbirthallowance
benefitChildcare subsidy(until child enters elementary school)• Exemption from late-night work
• Exemption from non-specified work
• Measures to reduce working hours• Application of flextime system

Childcare concierge service andbabysitter use support systemmandatory core hours
In addition to the current flextime system with core hours, wehave introduced a flextime system without mandatory core
hours at the head office and for a portion of Isohara Works, withthe aim of promoting more autonomous work styles among. We
have also defined our flextime system as covering 5:00 a.m. to
10:00 p.m., excluding late-night hours, to create a system where
employees can flexibly choose their work hours.
● Employing and retaining people with disabilities
Reference

Employing and Retaining People With
Disabilities ⇒ P42● Remote work system● Support system for male employees taking

As part of our efforts to create an environment where a diverse
range of people can work with a sense of motivation, we introduced a remote work system in January 2018. During the
COVID-19 pandemic, our employees have been working fromboth home and office to ensure the safety of our business partners, local communities, employees, and their families, while
taking into account the state of the virus and requests fromgovernment agencies, etc. We have also been striving to maintain our business to fulfill our social responsibility to deliver es-

We have provided support for childcare for some time, and inrecent years the percentage of male employees taking childcare
leave has been increasing. In addition to providing presentations
about our system, we are working to spread awareness of support measures by holding panel discussions with employees
who have taken childcare leave or are balancing work with childcare in our Career Design Training that has been held since fiscal
2020.

Childcare leave(until child reaches 24 months of age,
if requirements are met)

Ensuring hospital
visit time

Pregnant employees
are provided specified
time to receive healthguidance and healthcoaching:
once every four weeks
before the 23rd week ofpregnancy, once every
two weeks from the24th to 35th weeks, andonce a week after the36th week

Pre/post-childbirth leave

Child nursing care leave (until third year of elementary school)

Employees giving
birth are granted six
weeks of leave before
childbirth, and eightweeks after

If a child is injured or becomes ill, five days/year (for one child) or 10 days/year (for two children) ofleave are granted(can be taken in half-day increments)

Work provisions (until enrollment in elementary school)
Childbirth lump-sum
benefitEmployees are provided with one of the following measures: exemption from work outside of specified work
hours, exemption from late-night work, exemption from overtime work, measures to reduce working hours,
staggered working hours, etc.

Ensuring childcare time
Twice a day for 30 minutes on eachoccasion for female employees caring
for children of up to 12 months of age(up to 18 months of age if conditions aremet)childcare leave

Childbirth allowancepayment
Childcare leaveallowance● Systems for family care

The following programs are available if an eligible family member requires constant care.
Statutory Requirements

VOICE

I work in the Intellectual Property Department where several people had already used the childcare leave system.
This precedence encouraged me to use the system. I was also encouraged by listening to the experiences of those
who actually took the leave, which gave me insight on what it would be like to return to work. My supervisors andcoworkers were very accepting, for which I am very grateful.
When I handed over my work, my supervisor assigned me a successor for each work item based on an organized list of tasks and labor-hours. This allowed me to completely focus on childcare during those three months,
without worrying about work. I would like to put forth my best effort and help others at work take childcare leave
when the time comes.

JX Metals Corporation
Intellectual Property Department

Watanabe Sho

Statutory Requirements

Time Off• For one family member requiring care: 5 days/year (can betaken in half-day increments)• For two or more family members requiring care: 10 days/year(can be taken in half-day increments)

Leave• Maximum of 93 days may be taken in up to three periods•A total of up to 730 days may be taken over thecourse of four leave periods•F amily care subsidy and leave allowance (financial
support)•E xemption from overtime work beyond limitations (exemption
from overtime work in excess of 24 hours/month and 150
hours/year)•E xemption from late-night work (exemption from work duringlate night hours except when a family member 16 years of age
or older and capable of providing care lives in the same
household)•A t least two times in three years (measures to reduce working
hours)• Application of flextime• Exemption from non-specified work

• Reduction of working hours to a minimum of twohours per day, multiple times in three years

Testimonial From an Employee Taking Childcare Leave

81 JX Metals Corporation

Third year ofelementary schoolAge 36 - 48
Enrollment
mo. in elementary schoolChildbirth leave● Introduction of a flextime system without

Statutory requirements

As part of our efforts to energize individuals and organizations,
we are actively working to create an environment where a diverse range of people can work with a sense of motivation. Our
efforts include the creation of an environment where people canwork fully demonstrating their capabilities even if they are pregnant, raising a child, or caring for a family member. We provide
legally mandated systems to support having and raising children,and offer our own unique systems
as well. Our handbook on the support available for employees offers
tips on balancing work with childcare or family care, provides an
overview of the public services andcompany systems available for
their use, and describes the roles
managers should play in thiscontext.

sential products to society. Even after the COVID-19 pandemic
subsides, we will continue to utilize our remote work system sothat a wide range of diverse employees, not limited to those withcircumstances such as childcare or nursing care, can play anactive role in the Group.

ChildcareChildbirth
Age 0 - 12mo.

JX Metals commitments overstatutory requirements

Measures for Diverse Work Styles

Pregnancy

Work
Provisions

Sustainability Report 2023 82

Section 3 Materiality and ESG Management

Materiality 4

Respect Human Rights

SocialJX Metals Group Human Rights Policy
JX Metals Group understands that human rights of individuals must be respected in all countries and regions in which it conducts businessactivities, and as the guidelines for fulfilling its responsibility and obligation for ensuring the above, hereby stipulates this “JX Metals Group

Respect Human Rights

Materiality 4

Human Rights Policy” (hereinafter referred to as this “Policy”) based on the “Guiding Principles on Business and Human Rights” set forth
by the United Nations. JX Metals Group positions this Policy as the primary policy on human rights in conducting its business activities and

The JX Metals Group sees maintaining sound business practices while respecting the human rights of local residents, customers,
employees, business partners and all others involved in the supply chain as a major premise for our continued operation. Based on
this belief, we aim to conduct our business with due consideration for human rights, using opportunities like briefings and interviews,
and to create a corporate climate where human rights are respected.

continues to promote its efforts in upholding human rights.
1. Commitment to Respecting Human Rights
While understanding that its business activities may have a direct or indirect impact on an individual’s human rights, JX Metals Group fulfills its
responsibility for respecting human rights by avoiding any possible violation of human rights, and pledges to take appropriate actions to

Respect Human Rights
Principles

Respect Human Rights in Supply
Chainscorrect any negative impact on human rights that may be caused in the course of its business activities.

Human Rights Education
and Internal AwarenessRaising

JX Metals Group supports and respects the following international codes on human rights:• The United Nations’ (UN) “International Bill of Human Rights”, which stipulates the basic human rights of all individuals (including the“Universal Declaration of Human Rights”, the “International Covenant on Civil and Political Rights”, and the “International Covenant on
Economic, Social and Cultural Rights”);• The International Labour Organization’s (ILO) “ILO Declaration on Fundamental Principles and Rights at Work”, which stipulates thefundamental rights of workers such as their wages and working hours;• The “United Nations Declaration on the Rights of Indigenous Peoples”;• The UN’s “Children’s Rights and Business Principles”;• The Organization for Economic Co-operation and Development’s (OECD) “OECD Guidelines for Multinational Enterprises on Responsible

P83

P85

Business Conduct”;

P89• The “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict- Affected and High-Risk Areas”;

KPIs and Progress

Assessment:

Achieved/Steady Progress

Not Achieved• and other international codes on human rights
JX Metals Group complies with laws and regulations applicable in each country and region in which it conducts business activities, and in the

KPI

FY2022 Results/Progress

Percentage of
employees taking
human rights training(100% in FY2022)

In addition to stipulating respect for human rights in the Group Code of Conduct andother internal rules, we continue to carry out human rights training and e-learning
programs at Group companies to raise awareness of human rights and prevent
human rights violations. In fiscal 2022, 100% of our officers and employees
participated in these ongoing human rights training programs.

Conduct survey ofhuman rights in supply
chainsWe have established and operate a supply chain due diligence management system
in accordance with OECD guidance for procurement of raw materials. In fiscal 2022,
our external audits covered not only gold, silver, tantalum, platinum, and palladium
but also copper. These audits determined that we were taking appropriate action. We
also had our suppliers complete a CSR Questionnaire.

Assessment

event of a conflict between internationally-recognized human rights codes and the laws of each respective country and region, JX Metals
Group will seek a way to respect international human rights principles above all else.
2. Human Rights Due Diligence
To fulfill its responsibility for respecting human rights, JX Metals Group establishes and continues to implement a structure for “human rights
due diligence”. Human rights due diligence refers to a continuous process to prevent and reduce any possible negative impact on humanrights that it could cause to society, by conducting preventive investigations and developing early identification systems, taking corrective
actions where applicable, and externally disclosing the progress and results of those activities.
3. Remedies
In the event that JX Metals Group discovers that it has caused or contributed to any negative impact on human rights, it will endeavor tocorrect such a situation as seen fit. All parties involved, including, but not limited to, employees, employees in its supply chain, local
residents, and other stakeholders, will be referred to an ever-improving complaint hotline where they can file formal complaints.
4. Education
JX Metals Group will provide appropriate education to its officers and employees to ensure that this Policy is incorporated into the businessactivities of all JX Metals Group companies.

Respect Human Rights Principles

5. Information Disclosure

The Group is committed to advancing human rights due diligence and addressing human rights issues in accordance with internationallyrecognized guidance.

JX Metals Group will disclose the progress and results of its efforts in respecting human rights under this Policy on its website, in a report orother forms.
6. Dialogue / Consultation
JX Metals Group will hold a sincere dialogue with any relevant stakeholders as to any violations on human rights that could be caused in the

Established JX Metals Group Human Rights
PolicyWe adopted JX Metals Group Human Rights Policy on August
1, 2023. This Group policy is based on the United Nations Guid-ing Principles on Business and Human Rights, and it is intended
to guide how we respect human rights in all the countries andregions where we conduct business.

course of business activities so that it (JX Metals Group) can understand and address the issue from the view of the potentially affectedindividuals.
7. Scope of Application
The Policy shall apply to all officers and employees of JX Metals Group. JX Metals Group also requires that all business partners related to its
business activities understand and cooperate with this Policy.
The Policy has been approved by our Board of Directors and signed by our president and chief executive officer.
August 01, 2023
President and Chief Executive Officer, JX Metals Corporation

Hayashi Yoichi

83 JX Metals Corporation

Sustainability Report 2023 84

Section 3 Materiality and ESG Management

Materiality 4

Respect Human Rights

SocialRespect Human Rights in Supply Chains
In all of our business activities, the Group will respect the fundamental human rights of our own employees and all those involved inour supply chain, and at the same time we will strive to mitigate potential human rights risks.

JX Metals Group Basic Policy on Procurement (Excerpt)
4. Follow the below principles regarding conflict minerals· Do not engage in raw materials procurement that contributes to illegal activities in conflict-affected regions or to human rights violations resulting
from such activities.
· Respect the guidance of the Organisation for Economic Co-operation and Development (OECD) related to raw materials procurement fromconflict-affected areas, and control supply chains in an appropriate manner.

Policy for Selecting Procurement Partners
In the conduct of our business operations, it is necessary, not only that we in the JX Metals Group fulfill our responsibilities to society, butthat our business partners do the same across their own supply chains. Therefore, we also require our business partners to operate inaccordance with the items below. Going forward, we will confirm the process of improvement with respect to business partners who violate
the items below and receive an adverse disposition from the government, and business partners revealed not to be complying with theitems below. Furthermore, in the case that a business partner is not complying with the items below, we will consider whether it isnecessary to review (or cancel) the contract with the business partner.
1. Comply with laws, regulations, and social norms, such as those below, and place priority on human rights and environmental impact. In theevent of any inconsistencies between internationally-recognized human rights principles and the laws, regulations, social norms, etc., respect
the international human rights principles.
· Obey laws and regulations related to manufacturing and sales, etc.
· Comply with environmental laws and regulations· Prohibit discrimination based on race, gender, etc. and respect the human rights, personality, and individuality of employees· Prohibit bribery and other unfair conduct· Preclude all relations with “antisocial forces” (the term used to refer to organized crime groups in Japan)· Comply with labor-related laws and regulations· Prohibit child labor and forced labor· Comply with environmental laws and regulations· Do not engage in conflict minerals procurement or use that contributes to inhumane acts
2. Engage in sound and fair business management.
3. Based on the JX Metals Group Green Purchasing Guideline, build environmental management systems and properly manage specified
chemical substances.
4. Offer stable supply capacity and satisfy the quality, price, delivery, and service requirements of the JX Metals Group.
5. Possess technological capabilities that meet the requirements of the JX Metals Group.

Underwent VAP Audit by RBA*
Corporate social responsibility and the demands of our corporate customers are increasing every year, and to appropriately
respond to these, the Group is actively implementing initiatives
in line with international standards. In fiscal 2019, audits under
the RBA’s Validated Audit Process (VAP) were conducted at the
Chigasaki Plant of Toho Titanium Co., Ltd. and at the Mito Plant
of TANIOBIS Japan Co., Ltd. A VAP audit was also conducted
at Isohara Works in fiscal 2020.
The RBA VAP audit is an assessment of maintenance andcompliance with standards and management systems related
to labor, safety, health, the environment, and ethics, in accordance with the RBA Code of Conduct. In fiscal 2021, the Chigasaki Plant of Toho Titanium Co., Ltd. received Platinum certification, the highest level in the RBA certification program, with
Isohara Works receiving the same level of certification in fiscal
2022. Going forward, we will implement PDCA (Plan-Do-CheckAct) cycles to continuously improve our performance, which inturn will enable us to contribute to the realization of a sustainable
society across our entire global supply chain.
* Responsible Business Alliance (RBA)
A business alliance created with the goal of realizing responsible behavior in the electronics industry supply chain. This organization establishes standards to ensure safe
working environments, dignity and respect in worker treatment, and responsible business activities vis-a-vis the environment.

RBA-issued VAP audit certificates(Left) Isohara Works, (Right) Chigasaki Plant of Toho Titanium Co., Ltd.

The Copper Mark* Awarded to Saganoseki
Smelter & Refinery and Hitachi Works
In March 2022, JX Metals Smelting Co., Ltd. began the processof obtaining certification under The Copper Mark for its Saganoseki Smelter & Refinery and Hitachi Works. After an audit
conducted by an independent third-party organization, in January 2023, it became the first company in Japan to obtain thiscertification.
Both plants have been pursuing responsible production fora number of years, and The Copper Mark is an objective recognition of compliance at the plants across 32 criteria that covera wide range of standards, including those on the environment,
human rights, community, and governance. Going forward, bothplants will continue to be evaluated on their compliance with thevarious standards necessary to maintain The Copper Mark.
*The Copper MarkA framework established in 2019 to demonstrate the contributions made by the copperindustry to responsible production and the SDGs advocated by the United Nations.
The Copper Mark is certification based on an independent, third-party assessment ofcompliance with environmental, human rights, community, and governance standards.
Evaluations are conducted by an independent third-party organization, and after initialcertification, evaluations of a certified company’s continued compliance are conducted
every three years.

P0037

Initiatives for Human Rights in the Supply
Chain

Prohibit Forced Labor, Child Labor, andDiscrimination

In accordance with the Basic Policy on Procurement, the Group
conducts checks with our suppliers about issues such as ensuring worker rights, the presence of discrimination in hiring andwork, forced labor and child labor, and compliance with prohibition against purchasing conflict minerals. In addition, in fiscal
2019, we began conducting CSR Procurement Questionnaires
to foster CSR in procurement across our entire supply chain.
In fiscal 2022, we had 183 suppliers complete a CSR Procurement Questionnaire with questions covering nine subjects,
including compliance, supply chain, environment, human rights,
and labor. Aggregating the responses confirmed that we had no
significant issues to address. We will continue to conduct thesequestionnaires and provide feedback to our suppliers, while atthe same time taking precautions to prevent human rights violations from occurring in our supply chain.

Our Group Policy for Selecting Procurement Partners extends
to our supply chain and stipulates that forced labor, child labor,
racial discrimination, and gender discrimination are prohibitedand that there is to be compliance with all labor laws and regulations. Neither in the Group nor among our suppliers have there
been any reported cases of forced labor, child labor, violationsof freedom of association, factory shutdowns due to strikes, or
employment discrimination. Going forward, we will continue toprohibit forced labor, child labor, and discrimination of all kinds.

Unique Identifier

PRESENTED TO

Isohara WorksSAGANOSEKI SMELTER& REFINERY
for meeting the requirements for responsible production practicesof the Copper Mark. Valid for the period of
15 December 2022

to14 December 2025

Executive Director

The Copper Mark awarded to Saganoseki Smelter & Refinery

Chigasaki Plant, Toho Titanium Co., Ltd.

85 JX Metals Corporation

Sustainability Report 2023 86

Section 3 Materiality and ESG Management

Materiality 4

Respect Human Rights

SocialConfronting the Problem of Conflict
Minerals● Initiatives for the Tantalum Supply Chain

TANIOBIS GmbH, a producer of tantalum powder, implements
a strict program of purchasing checks based on international
standards for procuring raw materials from conflict-affected andhigh-risk areas. For example, it purchases materials guaranteedby the ITSCI* to have no involvement in infringements of humanrights, and it conducts supply chain due diligence. As a resultof these efforts, TANIOBIS has been included in the RMAP
Conformant Smelters list in recognition of its appropriate measures taken to exclude conflict minerals.
In addition, as of fiscal 2019, TANIOBIS began use of a
supply chain due diligence system similar to the ITSCI, by meansof the Better Sourcing Program (BSP) provided by the RCS
Global Group, an international auditing organization for the raw
materials supply chain.

“Conflict minerals” is the general term for minerals that are mined(illegally, in most cases) in conflict-affected regions, providing asource of funds for local armed groups. The use of these minerals may lead to increasing human rights abuses and inhumaneacts. In response to the international trend for stronger information disclosure and monitoring by stakeholders, industry organizations relevant to the Group (including the LBMA*1, LPPM*2,
and RBA) have established monitoring programs for eliminating
conflict minerals, and require each business operator to undergo
investigations and external audits.
*1 London Bullion Market Association (LBMA)
An industry association composed of financial institutions and others that deal in goldand silver ingot. Inclusion on this association’s Good Delivery List is viewed as a guarantee of high quality and reliability.
*2 London Platinum and Palladium Market (LPPM)
An industry association composed of financial institutions and others that deal in platinum and palladium ingot. Inclusion on this association’s Good Delivery List is viewed
as a guarantee of high quality and reliability.

* ITRI Tin Supply Chain Initiative (ITSCI)
An initiative by the International Tin Research Institute (ITRI), a global industry group fortin. Based on OECD Due Diligence Guidance, it works to enable due diligence frommines to smelters, and to encourage procurement from mines in conflict-affected areasthat is free of involvement with local armed groups.

● Initiatives in Copper, Gold, Silver, Platinum, andPalladium Supply Chains
JX Metal Smelting Co., Ltd., as a producer of gold, silver, platinum, and palladium ingots, has established and operates amanagement system for supply chain due diligence that calls
confirmation of the origin of raw materials, risk assessments,
and confirmation of distribution routes. Operational status isreported to the LBMA and LPPM after undergoing an external
audit by a third-party organization designated by the association. As a result of these processes, both of these organizations
have put the company’s gold, silver, platinum, and palladium
ingots on their respective Good Delivery Lists. At the same time,
the company has also been included on the RMAP Conformant
Smelters list for gold compiled by the RBA and GeSI*—recognition that it is taking proper measures to exclude conflictminerals.
For refined copper, the company also established a supply
chain due diligence management system, which includes confirmation of the origin of raw materials, risk assessment, anddistribution channels. The system began operating in fiscal
2022. Its operational status is verified by external audits conducted by a third-party organization, as stipulated under theprocess followed to obtain The Copper Mark.

Initiatives for Local Residents
Development and operation of mines can have a particularly
significant impact on the surrounding environment. It is therefore
essential to pay due consideration to the human rights of local
residents. SCM Minera Lumina Copper Chile, the operator of
the Caserones Copper Mine, applies a basic three-point policy
for supporting local communities: respect for the lifestyles of
local residents, protection of the community and environment,
and respect for applicable laws. In keeping with this policy, since
the launch of this project in 2007, the operator has held briefingsand engaged in dialogue with the Collas, indigenous people
living in the area around the mine site, endeavoring to build trust.
As in earlier years, we found no violations of the rights of local
residents in fiscal 2022.

White Logistics Activities
At the end of April 2020, we announced our participation in the
White Logistics movement launched by the Japanese government. We are promoting activities to resolve various issues
based on our voluntary declaration of support for this movement. For example, in contracts with logistics providers, we arepromoting appropriate action for contract reviews, such as
separating driving from ancillary work, studying and introducing
fuel surcharges, and reaffirming compliance with labor-related
laws and regulations and trucking business-related laws andregulations.

Activity Content in Our Voluntary Declaration of Support
Activities
1

Making suggestions and cooperating in logistics improvements

2

Separating driving from ancillary work

3

Studying modal shifts for CO2 reduction

4

Establishing fuel surcharge agreements

5

Incorporating legal compliance considerations when selecting
contracting parties

6

Taking safety measures during loading and unloading

7

Cancelling/suspending service during abnormal weather, etc.

LBMA and LPPM issued external audit certificates* GeSI: Global e-Sustainability Initiative
A global trade association of information and communications businesses focused onachieving digital sustainability.

Briefing session for residents

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Sustainability Report 2023 88

Section 3 Materiality and ESG Management

Materiality 5

Coexistence and Co-Prosperity With Local Communities

SocialHuman Rights Education and Internal Awareness Raising
The Group provides and makes known guidelines on human rights issues including discrimination, harassment, forced labor, and childlabor, for the prevention of these issues. We also create opportunities for periodic training to ensure retention of human rights
awareness.

JX Metals Group Compliance Regulation (Excerpt)

Materiality 5

Coexistence and Co-Prosperity
With Local Communities

Since the inception of our business at the Hitachi Mine, the JX Metals Group has emphasized the spirit of maintaining good relations
with local communities in conducting business. Keeping alive that spirit today, we have written coexistence and co-prosperity withsociety into our Code of Conduct. We additionally set an action plan for each fiscal year and work day to day to fulfill it.
Social Contribution
Activities

Stakeholder
Engagement

P90

P93

Prohibition of unjust discrimination
JX Metals Group companies and their officers and employees shall not discriminate in their business operations relating but not limited to hiring,salary, working hours, work conditions, and business terms due to reasons that include but are not limited to race, nationality, sex, age, religious
belief, social status, or physical characteristics.
Prevention of harassment
JX Metals Group companies and their officers and employees shall work proactively to prevent sexual harassment (including gender harassment)
and power harassment.
Protection of personal information
JX Metals Group companies and their officers and employees shall comply with personal information protection laws, regulations, and internal
rules, adequately of parties including but not limited to customers, business partners, and employees, and in situations where personal
information needs to be managed for business purposes, manage it with the utmost care.
Prevention of child labor and forced labor
JX Metals Group companies and their officers and employees shall not be involved with child labor or forced labor and shall work to help solvethese issues.

Human Rights Education

Human Rights Consultation and Remedies

In fiscal 2022, we conducted training for all Group employees
on human rights on the subject of Business and Human Rights.
This subject was chosen to deepen the multilayered understanding of human rights issues in line with the increasing importance of companies addressing such issues, which now
extend along the entire supply chain. To make it easier for employees to learn about this important subject, we created videos
on why it is necessary for companies to address human rights
issues and the various human rights initiatives our Group companies are taking. The videos are designed to provide employees with a basic understanding of two subjects: Business andHuman Rights and the human rights of our stakeholders. Thisin turn raises the awareness of both subjects among all our
employees.
We will continue our work to ensure an understanding of
human rights concepts in our global business operations andto do business in consideration of human rights.
Work Categories

The Group has established the JX Metals Group Hotline as aninternal consultation service for human rights violations andother issues. Employees are able to anonymously use this hotline to discuss any issues related to human rights from thosethat may crop up on a day-to-day basis to significant infringements. All reports to this hotline are presented to the president,
including a report on our response to each. Information about
the establishment of the hotline is posted on our intranet portal
and disseminated through various training programs, including
human rights training. No one using the hotline for consulting orreporting shall be subjected to disadvantageous treatment for
its use. Seven reports were made to the hotline in fiscal 2022.
In regard to remedies, no restrictions have been made on
resolving issues for consultation through external remedies, andtherefore consulting parties may seek other remedies according
to the legal system of the country in question.
We have also established the JX Metals Group Supplier
Hotline and a Group website-based Help Desk as a consultation
service available to external stakeholders, such as suppliers,
suppliers’ employees, and local residents. The hotline and Help
Desk have been set up to offer a process for remediation andredress that can be accessed by stakeholders affected by actsof the Group that violate or may violate laws and regulations. All
consultations are conducted on an anonymous basis. In addition, the Group will never treat an individual or their employer
unfavorably for using these consultation services or reporting a
concern.

People in Supply Chain

Local Community
Residents

Total Hours Spent in Human
Rights E-Learning Training(Number of trainees x course hours)

Employees

KPIs and Progress

Assessment:

Achieved/Steady Progress

KPI

FY2022 Results/ProgressContinuing dialogue
with local communities

Despite the impact of COVID-19, we endeavored to understand the needs of local
communities, building trust with stakeholders related to corporate activities throughongoing dialogue.

Not Achieved

Assessment

Social Contribution Activities
With the goal of further strengthening relationships with local communities through social contribution activities, the JX Metals Group
conducted community-based initiatives at each of our operating sites in Japan and overseas. While the impact of COVID-19 resulted
in restrictions or limitations on our activities, we endeavored to create opportunities for communication with local communities, valuing
the spirit of coexistence and co-prosperity that we have pursued since our founding.

Results of Main Social Contribution Activities in FY2022
Activity

Environmental
Conservation
Activities

Location

Date

Description

Cleanup around plant
areas

Isohara Works

May 2022

Ninety-five employees and their families participated in
an environmental beautification campaign organizedby Kitaibaraki City to pick up trash around the Otsu
Port.

Sagami River CleanupCampaign

Kurami Works

May 2022

About 90 employees participated in a beautification
activity conducted mainly by local governments topreserve the environment in the Sagami River basin.

● Environmental Conservation Activities

FY2022

1,077hours
Employees participating in the Sagami River Cleanup Campaign

89 JX Metals Corporation

Sustainability Report 2023 90

Section 3 Materiality and ESG Management

Materiality 5

Coexistence and Co-Prosperity With Local Communities

Social

Educational
Activities

Activity

Location

Date

Youth X (Future) Essay
and Children X Drawing
ContestSaganoseki Smelter &Refinery, JX Metals
Smelting Co., Ltd.

July 2022- March 2023

The Youth X (Future) Essay and Children X Drawing
Contest was held at elementary and junior highschools in the Saganoseki and Kouzaki areas.

February 2023

We held a plant tour for local residents to further
deepen understanding of our business among the
local residents who support us. Over the two days, a
total of 70 people visited the Shirogane district andthe Nippon Mining Museum. We also held a regularmeeting with the Shirogane-cho Environmental
Liaison Council in conjunction with the tours. Here, we
exchanged views on the construction status of the
new rolling mill, the Miyata River cleanup, and otherenvironmental activities.

Nippon Mining Museum
and plant tours

Cooperation with the
Minato Science Festa

Participation in local
festivals

Hitachi Works

Head Office

Saganoseki Smelter &Refinery, JX Metals
Smelting Co., Ltd.

March 2023

We participated in the Minato Science Festa 2023 Let’s go to the science fair together! held at the
Minato Science Museum, where we held a laboratoryclass.

April and July2022

We dispatched 10 young employees of the smelter to
two local festivals in April and July 2022. Here, they
participated in the spring festival at the Shiinetsuhiko
Shrine, a well-known shrine dedicated to the god ofmaritime safety in the fishing town of Saganoseki, andthe summer festival at the Hayasuhime Shrine.

July 2022

We set up an exhibition at Eco Fest Hitachi 2022, anevent organized by Hitachi City to raise environmental
awareness among citizens. The theme of our
exhibition was Introducing Businesses that Contributeto a Resource Recycling-Oriented Society. Here, we
introduced the history of the Hitachi Works and ourbusiness.

Community
Development
Exhibit at Eco Fest
HitachiSportsPromotion

Regional promotion of
corporate sports

Hitachi Works

Hitachi Works

Description

Year-round

Kendo club members from Hitachi Works coach local
students from kindergarten to high school (10-15
students) four times a week.

● Educational Activities

ColumnRegional Cooperation in Ibaraki Prefecture
JX Metals Corporation traces its roots back to the start of operations at the Hitachi Mine in Hitachi City, Ibaraki Prefecture,in 1905. Even today, we have several production facilities in this prefecture. We have a very close relationship with Ibaraki
Prefecture, and the area is very important to our business. Looking ahead to the construction of our new factories andthe growing importance of reliable supply chains, we are promoting activities to further develop the regional economy andincrease our visibility there.
● Signing a Comprehensive Cooperation Agreement With Hitachinaka City
In January 2023, JX Metals concluded a comprehensive cooperationagreement with Hitachinaka City for the construction of a new factory inthe city. This agreement was made in the hope that we could help city
development as a member of the local community.
We will contribute job creation and industrial development throughthe operation of our new plant. In addition, we also donated 100 million
yen through the local tax system for corporations. Through this donation,
we will support various activities for the future of the community, such as
nurturing the next generation and operating the community center in
Ajigaura district, where our new plant is located.

● Signing a Comprehensive Cooperation Agreement With Ibaraki University

Reference

Establishing a Structure to Promote Innovation ⇒ P32● Signing a Top Partner Agreement With Mito HollyHock for the 2023 Season

In April 2022, JX Metals concluded our first Platinum Partner Agreement with the professional soccer club Mito HollyHock.
In signing this agreement, we have supported efforts to revitalize local communities, foster the next generation, and solve
local issues through sports promotion. This partnership was signed for aperiod of just over six months. During this time, we strongly desired towork with this team that continues community-based activities under theslogan of Creating a new original landscape for the city. Therefore, we
signed a Top Partner Agreement with the team in October 2022, thehighest category of official partner. JX Metals will continue to support theteam and their activities in the 2023 season by placing advertisementson the top team uniforms, holding Thanks Matches, and collaboratingwith soccer schools and other next-generation development activities.

● Donating 100 Million Yen to Nikko Memorial HospitalAward ceremony for the Youth X (Future) Essay andChildren X Drawing Contest

Participants of the Nippon Mining Museum tour

● Sports Promotion● Community Development

Young employees participating in a festival andcarrying the portable shrine

91 JX Metals Corporation

Laboratory class at the Minato Science Festa

Our booth at Eco Fest Hitachi

Nikko Memorial Hospital was established as an affiliated clinic of the
Hitachi Mine, the root mine of the Company. This hospital has long been
involved in the health care and medical treatment of employees, theirfamilies, and local residents. In 2018, we began planning the constructionof a new hospital building due to the deterioration of old building that had
been in use since 1981. Construction began in 2019, and in March 2022,
the hospital made a comeback with a new integrated health check centerand a long-term care medical center. Nikko Memorial Hospital continues
to operate as an essential part of community healthcare that protects thehealth of citizens to this day.
Due to high community expectations for the hospital, JX Metals donated 100 million yen to the hospital in August 2022 to support its operations as much as possible. We hope that Nikko Memorial Hospital willcontinue to be an integral part of local healthcare.

Kendo class activities

Sustainability Report 2023 92

Section 3 Materiality and ESG Management
SocialStakeholder Engagement
The Group believes that understanding the demands of various stakeholders accurately, responding in good faith, and building relationships of trust will lead to an increase in corporate value. To this end, we take advantage of opportunities for dialogue with eachstakeholder and engage in active two-way communications.

Key Stakeholders andResponsibilities

Main Means of Communication

Customers
We will contribute to achieving amore affluent society by improving
satisfaction and fulfilling our social
responsibilities through the stableand efficient supply of high-quality
products.

• Communication in sales activities• Dissemination of information via website andSNS• Exhibit at the 9th Highly-functional Metal
Expo• Invitation to SQUARE LAB• Stable supply of highly-functional
products• Improvement of economic efficiency
and added value of products•Improvement of environmental
performance of products• Appropriate disclosure of productinformation

Shareholders and investors
As a major operating company of
the ENEOS Group, we will strive
to disclose information in a timely
and appropriate manner through
ENEOS Holdings, a listedcompany.

• Publication of Sustainability Report• Disclosure of information on website• IR news email distribution• General meeting of shareholders, financialresults briefing, business office information• Stable profit return• Easy-to-understand information
disclosure on management strategies• Full disclosure of ESG information

Employees
We will promote the creation of arewarding workplace, focusing on
the improvement of the work
environment and theenhancement of training systems.
And we will strive to improve themotivation of each individual.

• Publication of the group newsletter Cuprum• Preparation and distribution of the ESG
Handbook and the Handbook for Supporting
Balancing Childcare or Nursing Care
• Implementation of self-assessment system• Holding online workshops• Dialogue between labor unions andmanagement• Various employee training and education
programs• Prevention of occupational accidents• Penetration of Group ESG activities• Achieving diverse work styles• Enhancement of training system• Fair and equitable personnel evaluation• Maintaining and promoting mental andphysical healthBusiness partners
We will conduct business with ourpartners built on relationships oftrust. We are working to achieve
fair and equitable transactions
throughout the supply chain.

• Communication through purchasing activities(CSR Procurement Questionnaire)• Operation of an inquiry desk
• Conducting surveys with business partners• Invitation to SQUARE LAB• Equal and fair trade• Management of occupational safety

Local communities
We will pursue coexistence andco-prosperity at each of ourbases by creating understandingof our business and building
cooperative relationships throughvarious exchange opportunities.

• Creation of cooperation agreements with
universities and establishment of joint
research courses• Conducting factory tours, office tours, andvisiting classes• Participation in and sponsorship ofcommunity events• Conducting briefings for local residents• Participation in local volunteer activities• Strengthening cooperation with local
communities for their revitalization• Cultivation of a new generation andeducational support• Reduction of the environmental impactof the region

International community
We pay close attention to trends
in global warming and otherinternational issues. We engage
with issues proactively andcomply with laws and regulations.

• Implementation of business practices that
support the SDGs
• Response to TCFD / Endorsement of
Challenge Zero / Participation in GX League• Establishment of a resource-recyclingsociety• Climate change adaptation andmitigation• Progress in the Digital Society

93 JX Metals Corporation

Main Topics

GovernanceMateriality 6

Strengthen Governance

It is essential for companies to gain and maintain stakeholder trust to conduct business and increase long-term corporate value in a
drastically changing society. The Group promotes strict compliance with laws and risk management to increase the soundness andtransparency of management and reinforce governance.
Corporate
Governance

Rigorous
Compliance

Risk
Management

Quality Control in the
Supply Chain

P95

P97

P99

P102

KPIs and Progress
KPI

Assessment:

Achieved/Steady Progress

FY2022 Results/Progress

Not Achieved

Assessment

Steady operation ofgroup-wide risk
management

The JX Metals Group bases activities on Enterprise Risk Management (ERM),
established with reference to ISO 31000, a set of guidelines for risk management. In
fiscal 2022, we formulated the JX Metals Group ERM Vision toward ERM that is more
conducive to enhancing corporate value. To achieve this vision, we planned andimplemented measures to improve our ERM system. We analyzed the gap with ourcurrent state and analyzed actions to take based on a maturity model provided by an
external organization.

Compliance training
tailored to businesscharacteristics andsocial movements, etc.

The Group conducts compliance training every year to increase awareness andknowledge of compliance among executives and other employees. In fiscal 2022, in
addition to annual the rank-specific compliance training, we once again held training
programs in Japan and overseas regarding harassment and the Subcontract Act,tailored to business characteristics, social trends, and other factors.

Sustainability Report 2023 94

Section 3 Materiality and ESG Management

Materiality 6

Strengthen Governance

GovernanceCorporate Governance● Management of Group Companies

The Group is working to strengthen our governance structure in order to have a firm grasp on rapidly changing business environments,
to accelerate decision-making and business execution, and to achieve fair and highly transparent management.

Corporate Governance Structure
ENEOS Holdings
Discuss, Report, Etc.

JX Metals Group

Business Management, Etc.

General Meeting of Shareholders
Election and Dismissal

Election and Dismissal

Directors/Board of Directors
Discuss and Report
Important Matters

Supervision and Audit

Election and Dismissal

Execution PresidentofOperations Executive Officers/
Executive Council

Audit &
Supervisory
Committee

ESG Committee
Compliance Committee

Independent
Auditors

Coordination
Supervision and Audit

Safety and Environment Committee
Carbon Free Committee

Election andDismissal

Internal Audit

Internal Auditing
Department

Human Resource Council
Technology Council

Accounting Audit
JX Metals

Discuss, Report, Etc.

Business Management, Etc.

Group Companies

Each Group company is placed under the jurisdiction of theappropriate operating or corporate department of the Company
based on its business line, and the execution of its operations
is managed and supervised by that department. Important matters regarding the business management of individual Group
companies are reported to the Company through the relevantsupervising departments. If necessary, they are also reported or
discussed at the Executive Council and other important
meetings.

Policies and Procedures for Nominating
Board of Director Candidates and for
Selecting and Dismissing Senior Managers
Directors who are not Audit & Supervisory Committee members
are selected from among persons having high professional ethics, excellent strategic thinking and judgment, adaptability tochange, and the ability to make decisions and supervise management from the perspective of overall Group optimization.
Directors who are Audit & Supervisory Committee members
are selected from among persons who have high professional
ethics and a certain level of expertise in law, finance, accounting,etc., and who are capable of auditing the execution of duties bydirectors and supervising the execution of business operations
appropriately.

Executive Officer Compensation System● Board of Directors

The Board of Directors was established to discuss mattersspecified by laws, regulations, and the Articles of Incorporation,
as well as other important management issues. The Company’s
Board of Directors consists of 12 members: 7 non-Audit & Supervisory Committee members (6 male and 1 female) and 5
Audit & Supervisory Committee members (4 male and 1 female).
In accordance with laws, regulations, and the rules of the Boardof Directors, transactions involving conflicts of interest between
directors and the Company are subject to approval by the Boardof Directors.

companies through interviews and the inspection of documents.
Furthermore, auditors receive periodic reports on audit plans,
progress, and results from the Internal Auditing Department andthe accounting auditor while enhancing cooperation through theexchange of information and opinions.
● Executive Council

As an advisory organ to the president, the Executive Council,
consisting of the president and executive officers appointed by
the president, was established to discuss important mattersregarding company management and to report the state ofbusiness execution.

● Audit & Supervisory Committee

On June 28, 2023, the Company transitioned to a company with
an Audit & Supervisory Committee to strengthen the supervisory
function of the Board of Directors and enhance corporate governance further.
The Audit & Supervisory Committee has the authority prescribed by law, the Articles of Incorporation, etc., to audit theexecution of duties by directors and to prepare audit reports. In
addition, auditors endeavor to understand the state of businessexecution by individual executives of the Company and Group95 JX Metals Corporation● Outside Directors

With the recent growing calls from society to strengthen governance and internal controls, we appoint outside directors toincorporate new perspectives in judgment and new stimuli, as
well as provide an external oversight function. As of June 2023,
5 of the 12 directors (2 directors who are not Audit & Supervisory
Committee members and 3 Audit & Supervisory Committee
members) are outside directors.

Company compensation for the executives consists of fixedmonthly compensation based on the relevant individual’s roleand variable performance-based bonus payments. The bonus
is determined by the consolidated business results of the Company as well as ENEOS Holdings. The Company does not havean executive officer retirement benefit program. The sharebased remuneration system was implemented in July 2017. The
share-based payment system applies the Board Incentive Plan
(BIP) to Board Members and Executive Officers (excluding directors who are not Audit & Supervisory Committee members
and outside directors) to provide ENEOS Holdings shares according to individual role and performance as part of the incentives program. The share-based payment system is designed
to strengthen the link between the compensation of eligible individuals and the Company’s medium- to long-term strategy, tofoster an awareness of the eligible employee’s contribution toraising corporate value and engage in shareholder-oriented
management, and to pursue efforts toward building a sustainable society, including environmental preservation. In this connection, we adopted the following performance indicators.

• Net income, excluding inventory effects• Free cash flow
• GHG emission reductions achieved• Net D/E ratio• Return on equity (ROE)• Return on invested capital (ROIC)Internal Control System
The Group has established the Basic Policy for Establishment
and Operation of Internal Control Systems. Based on this policy,
the Group has established internal control systems to ensure
the efficiency and appropriateness of our operations. In addition
to receiving reports on the status of internal control activities
from each division of the Company, we conduct surveys of thestatus of development and operation of internal control systems
at major Group companies. The status of the development andoperation of internal control systems is, in principle, monitored
once a year by the Executive Council. While taking into consideration the business characteristics of each company, we arecontinuously improving internal control systems for the Group
as a whole.

Internal Audit
We conduct internal audits across the entire JX Metals Groupto investigate, discuss, and assess the state of business administration, operations, and asset preservation from the standpoints of legality, efficiency, and effectiveness. The Internal Auditing Department is in charge of these functions.
The Internal Auditing Department establishes a mediumterm policy at three-year intervals and drafts auditing plans foreach fiscal year to ensure systematic internal audits. Internal
audits of Group companies are conducted in collaboration andcooperation with auditors dispatched from the Company. Basedon the results of these audits, proposals for necessary improvements are made, with progress tracked for corresponding actions. Audit results and findings are reported to the president of
JX Metals, to the relevant Group company, and, as necessary,to the Executive Council.

Sustainability Report 2023 96

Section 3 Materiality and ESG Management

Materiality 6

Strengthen Governance

GovernanceComplete Inspections for Compliance With
Environment and Safety Laws

Rigorous Compliance
JX Metals Group Code of Conduct and the JX Metals Group Compliance Regulations define compliance as not only observing domestic
and foreign laws, rules, and regulations, but also acting in line with social norms and corporate ethics. We conduct our corporate
activities with an emphasis on compliance.

Compliance Promotion Structure
Based on the belief that thorough compliance is a prerequisite,
the Group, as a member of the community, continues to create
value in response to the expectations of our diverse stakeholders, and we have established various internal regulations concerning compliance. At the same time, we have establishedCompliance Priority Targets for each fiscal year and monitor the
real-time status of their implementation. If any issues are identified in the system or in operations, we make improvements as
we continue various efforts that will enable us to remain a trusted
corporate group.
Measures related to compliance in the Group are determinedat Compliance Committee meetings (twice yearly in principle).
The Committee consists of executives from the Company andother major Group companies in and outside Japan. In responseto reports on the state of compliance provided by individual
departments of the Company and Group companies, the Compliance Committee evaluates the risk of fraudulent acts, legal
violations, and other misconduct related to business operations,and reflects the results in setting priority issues and formulating
education plans.

Whistleblower Program
To increase reliability, we have outsourced the Group’s whistleblower program to an external organization. This externalorganization is responsible for accepting anonymous reports
from whistleblowers. We have also taken a wide range of measures to increase awareness of the program throughout theGroup. Such measures include displaying posters at individualGroup company sites to publicize the program, creating a special section on the Company portal site, and introducing the
program during compliance education sessions.
In fiscal 2022, we received seven reports through the program and took necessary measures in all instances in accordance with the relevant rules and regulations while taking due
care to protect whistleblowers.

Handling Anti-Social Forces and Bribery
Prevention
The Group has established a system for eliminating anti-social
forces based on the JX Metals Group Regulations for Dealing
with Anti-social Forces and the JX Metals Group Detailed Rules
for Dealing with Anti-social Forces in order to cut off any relationship with anti-social forces. This system includes periodicallyconducting specified investigations of business partners andtheir related parties, and taking contractual measures in advanceto terminate business relationships, depending on the circumstances. In order to prevent violations or suspected violationsof anti-bribery laws and regulations by Group company executives and employees, we have established an anti-bribery system founded on the JX Metals Group Anti-Bribery Regulation.
This system includes the requirement of a prescribed set ofchecks when providing entertainment, gifts, etc., to a public
official or similar person, and approval from a responsible party
when certain conditions are met.
In fiscal 2022, we continued to check the application basedon said regulations, confirming that the system was applied
properly in general. (There were no adverse dispositions issued
by regulators in regard to bribery.)

Program for Compliance with Competition
Laws
The Group has established the Program for Compliance with
Competition Laws, which includes rules such as those requiring
all employees to report in advance planned transactions orgatherings with competitors to confirm that they do not violatecompetition laws, requiring individual managers to submit periodic reports to the head office, and so on.
In fiscal 2022, we continued to check the application basedon the aforementioned program, confirming that the program
was applied properly in general. (There were no adverse dispositions issued by regulators in regard to anti-competitive
behavior.)

We conducted complete inspections for compliance with environmental and safety laws at two Group sites in fiscal 2022. We
confirmed that environment-related and occupational health andsafety-related laws were thoroughly understood by employees
at all Group company sites, and no serious lack of understanding was observed. All sites are also responding appropriately tomatters requiring improvement.

and China, lectures on the Group’s compliance system andexplanations of important laws and regulations, such as thosedealing with competition law compliance and anti-bribery, were
presented mainly to national staff managers by lawyers, legal
staff, and other instructors. It was an opportunity for participants
to deepen their understanding of compliance.
Going forward, we plan to continue studying and implementing compliance training programs in Japan and overseas, basedon trends in legal revisions, regional characteristics, and otherfactors.

Inspections for Compliance With Labor
Laws
We conducted inspections for compliance with personnel andlabor laws at nine Group sites in fiscal 2022 and confirmed
proper management.

Compliance Education
The Group facilitates the fulfillment of compliance education toincrease awareness and knowledge of compliance among executives and other employees, and conducts a variety of compliance and legal training sessions in Japan and overseas basedon business characteristics and social trends.
In fiscal 2022, in addition to annual rank-specific compliancetraining (for directors, managers, new employees, etc.) that is
conducted every year, we conducted training sessions on internal controls, security trade controls, harassment, the Subcontract Act, Stamp Tax Act, information security, etc., astheme-specific legal and regulatory education sessions. At overseas bases, we conducted education for expatriates at theheadquarters or the bases, taking into account business characteristics and social trends, etc. In the United States, Germany,

Compliance Training in China by attorney Sun Haiping, Fangda Partners (at JX Nippon
Mining & Metals Shanghai Co., Ltd.)Tax Governance
The JX Metals Group recognizes that the proper fulfillment of
tax obligations in the countries and regions where a company
does business is one of the most important social responsibilities that it should fulfill. Based on this, we are fostering awareness of tax compliance and working to maintain our tax governance system in accordance with the ENEOS Group Tax Matters
Policy.

ENEOS Group Tax Matters Policy (Excerpt)
1. Basic Approach
Companies have a social responsibility to appropriately honor their tax obligations in the countries and areas where they conduct their businessactivities.
2. Compliance With Applicable Laws and Regulations
We comply with the relevant tax laws and regulations in the countries and areas in which we conduct our business activities.
We conduct our business activities in accordance with the purposes of the rules regarding international tax matters (such as the OECD Transfer
Pricing Guidelines for Multinational Enterprises and Tax Administrations and the Base Erosion and Profit Shifting Project).
3. Fostering Awareness of Tax Compliance
Through continuous training concerning tax matters and other relevant training, we make efforts to maintain and improve our awareness of tax
compliance.
4. Optimization of Tax Costs
By using the Advance Pricing Arrangement and other relevant systems, we attempt to obtain agreement with tax authorities and make efforts to
reduce risks and optimize costs.
5. Establishment of Relationships of Trust with Tax Authorities
At the request of tax authorities, we provide necessary information properly and promptly.

97 JX Metals Corporation

Sustainability Report 2023 98

Section 3 Materiality and ESG Management

Materiality 6

Strengthen Governance

GovernanceDecision-Making on Tax matters,
Supervision by the Board of Directors, andthe Role of Audit & Supervisory Committee
Members
The Accounting Department is in charge of corporate taxes andperforms duties related to taxes under the management andsupervision of the executive officer in charge of the Accounting
Department. We also established and maintain an internal control system, including matters related to taxes. We strive toensure that this system operates properly and that an effective
tax governance structure is in place. Whenever important tax-related events occur, the Company reports such to the Executive
Council and other relevant bodies in a timely and appropriatemanner.

Tax-Related Government Initiatives andInformation Gathering
We are committed to reducing tax risks by consulting with outside experts and making advanced inquiries with tax authorities.

We are committed to proper tax compliance by providing tax
authorities with timely and appropriate information and by responding sincerely and cooperatively. We are a member of theJapan Mining Industry Association. Through this association, we
gather information and express our opinions on tax system revisions to government agencies.

Protection of Intellectual Property
The Group recognizes that intellectual property rights are important company assets and strives to protect and utilize suchrights. In addition, the JX Metals Group Basic Policy on Intellectual Property clearly states that we respect the intellectual property rights of other companies and endeavor not to infringe onthem. In researching and developing new products and technologies, we conduct preliminary investigations to ensure thatour products do not infringe on intellectual property rights.
Referencement system, advancing our approach to ERM by identifying
issues and making improvements under the aforementioned
maturity model.
* RIMS: Headquartered in New York, RIMS is the world’s largest risk management organization, consisting of more than 9,000 risk management professionals worldwide.

1. Management Risks
Risk of obstructing achievement of the management goals of the JX Metals Group. These risks are selected by consensus from the generalmanagers of corporate departments.
2. Business Risks
Risks that may affect the achievement of goals related to the execution of business by the respective organization. The organization in chargeof each risk selects these risks through a business risk identification survey. Each organization appoints risk management promotion managers
and risk management promoters, with the goal of promoting the penetration of risk management activities within each organization.
3. Material Risks
Management and business risks that are selected by the Executive Meeting as risks that could have a significant impact on the management of
the JX Metals Group. The Executive Council approves and monitors risk response.

Basic Policy on Intellectual Property Strategy ⇒ P 73

Risk Management Structure
Executive Council
Approval/Instruction

Discussion/Report

Risk Management Office

Risk Management

Support/Monitoring

We identify, analyze, and assess various risks surrounding our business based on future projections and changes in the internal andexternal environment, and implement measures to avoid, mitigate, transfer, or acknowledge, etc., related to these risks. In addition,by monitoring the situation, we promote risk management in accordance with the following principles with the goal of appropriately
managing risks and supporting the management of the Group.
• Management and employees will participate in risk management initiatives.
• Recognize risks linked to business goals and promote them as an organization-wide activity.

ReportMaterial Risks

Management Risks

Organization Responsible
for Material Risks

Instruct/
Support/Monitoring

Risk Management Promotion System
The JX Metals Group determines material risks, approves response plans for each material risk, and monitors these plans,
all under the approval of the JX Metals Executive Council. In
addition, the Risk Management Office in the Company’s Administration Department is responsible for the overall risk management for both the Company and Group, handling ERM.

Status of Risk Management Initiatives
Risk is defined as “any and all uncertainty that could have an
impact on the management of JX Metals Group companies.”
Here, in order to achieve risk management that is linked to our
long-term vision, medium-term management plan, and businessplan, we classify risks into management risks and business risks.
Among those management risks and business risks, risks that
we determine will have a significant impact on the Group’s man-

99 JX Metals Corporation

agement, and that should be addressed on a company-widebasis, are designated as material risks by the Executive Council.
These material risks include risks related to business continuity
and sustainability, such as climate change and risks related tohuman rights, geopolitics, etc. The organization responsible formaterial risks takes the lead in responding to these risks. In
addition, the Executive Council monitors the status of theseactions.
In fiscal 2022, we formulated the JX Metals Group ERM
Vision to further advance company-wide enterprise risk management initiatives. To achieve this vision, we joined the Risk
Management Society® (RIMS*), and we implemented various
measures using the maturity model published by RIMS. We alsocollect information on the latest trends in ERM, build networks
within the organization and member companies, and reflect theknowledge gained in our various measures. We continue toevaluate the adequacy and appropriateness of our risk manage-

Management
Risks

General Managers of Corporate Departments

Support/Monitoring

ReportStakeholder Departments/
Group Companies
for Material Risks

Business Risks
Risk Management Promotion
Managers
Risk Management Promoters

Report• Respond flexibly to risks, taking into account the organization’s purpose, mission, and goals, as well as internal and external conditions.
• Continuous improvement based on information from stakeholders and evaluation of the effectiveness of risk management efforts.

Hearing

Designation of Material
Risks by the General
Managers of Corporate
Departments

Instruct/
Support/Monitoring

ReportStakeholder
Departments/
Group Companies forManagement Risks

Strengthen Risk Transfer Strategies
Our approach to risk is to select and implement an appropriate
response (avoidance, mitigation, transfer, or retention) to therelevant risk based on the results of risk assessment. For risks
that could have a significant impact on our business activities
despite risk reduction measures, we utilize insurance as a means

Instruct/
Support/Monitoring

ReportOrganizations
Domestic/Overseas
Sites Group Companies
Under Jurisdictionof risk transfer. To enhance the effectiveness of insurance, we
worked together with related departments in fiscal 2022 to
calculate the probable maximum loss for fires and other specificrisks, designing an insurance plan based on these figures. We
intend to expand the scope of this initiative in the future.

Sustainability Report 2023 100

Section 3 Materiality and ESG Management

Materiality 6

Strengthen Governance

Governance

Promotion of Risk Personnel Education

Information Security Initiatives

The JX Metals Group conducts risk management training byrank to foster Group-wide understanding of risk management
and improve risk sensitivity. In fiscal 2022, we created an opportunity for management to discuss risk management and theintegration of management and business strategy through lectures and group work facilitated by outside experts. Prior to
selecting management risks, we also held training for generalmanagers of corporate and business divisions related to risk
scenario development based on global risk trends. In this way,
we identified comprehensive risks that could affect managementfrom a more medium- to long-term perspective.
To further raise risk management awareness among all employees, we began publishing a regular internal newsletter dedicated to risk management. The newsletter includes messages
from top management and case studies of initiatives in eachorganization. We created original cartoon content about risk
management basics to complement basic knowledge, publishing the materials in a serialized format. We continue to raiseawareness of risk management, taking into account feedback
from directors and employees.

The Group has taken steps to build an information security
management system (ISMS) in compliance with ISO 27001 fromthe three perspectives of strengthening information security
compliance, increasing customer trust, and leveraging information internally and externally. In fiscal 2022, we conducted information security risk assessments, internal audits, rank-based
training, and supplier management in each department. These
assessments and audits were conducted in accordance withplans approved by the Information Security Officer. To solidify
information security measures and awareness within the Group,
we established a system for stronger information security by
applying the standard to Group companies, in addition to thehead office and business sites.
In efforts to upgrade information security further under theleadership of the Information Security Officer, we will incorporate
the cyber security measures implemented by the IT Department.
At the same time, we pursue continuous improvement in accordance with ISMS to contribute to the realization of our long-term
vision of becoming a technology-based company.

Information Security Structure

Business Continuity Plan (BCP) Initiatives
The Group has formulated business continuity plans (BCP*1) tominimize damage and achieve early recovery in the event ofbusiness interruption due to a major earthquake.
From fiscal 2020, we have taken this to a higher level andhave begun working toward the establishment of an all-hazard
BCP called a resource-based BCP. This is not a BCP for every
event, such as an earthquake or a flood, but one that focuses
on resource contingencies (facilities, raw materials, materials,etc.) that are likely to disrupt business activities during emergencies, and organizes relevant disaster mitigation and recovery
measures. In addition, we regularly survey the risk of disasters
occurring where our major business sites are located to help us
make decisions about preventing damage and investing in facilities. Through these efforts, we aim to strengthen our BCPs.
We continue efforts to improve initial response through efficientand reliable means of information sharing in the event of a natural disaster.
At the same time, we will continue to conduct business
continuity management (BCM*2) by confirming and improving
the effectiveness of BCP through regular drills.
*1 BCP: Business Continuity Plan
*2 BCM: Business Continuity Management

101 JX Metals Corporation

Management

Information Security Officer

JX Metals Group Basic Policy on Information Security
As a company with a social mission to provide a stable supply of nonferrous metals and advanced materials, the JX Metals Group
recognizes that the information entrusted to us by our customers and business partners, as well as trade secrets and personal information
held by us, are important assets. We have established a basic policy for information security in order to systematically and continuously
strengthen information security.
1. Legal compliance and social responsibility
Comply with laws and regulations, government guidelines, contractual obligations, and internal rules related to information security, and work tofoster compliance management and a culture that emphasizes information security.
2. Maintaining and strengthening the trust we receive from customers and business partners
Ensure the protection of information assets entrusted to us by our customers and business partners.
3. Contributing to the expansion of our own business opportunities
Ensure the protection of information assets that can be a source of competitive advantage.

Implementing a New IT Infrastructure
Based on the Zero Trust Approach
In response to changes in work styles amid the COVID-19 pandemic and requests from business partners to strengthen security measures, the Group has been upgrading our network
based on the concept of zero trust. This is the most advanced
cloud-based security service available today, enabling security
management at the terminal and user level that cannot be

achieved with conventional perimeter security networks, thereby
raising the security level of the entire Group in a uniform manner.
This system is already in operation at JX Metals’ Head Officeand operating sites, and will be rolled out to Group companies
in Japan and overseas in stages.
ReferenceStrengthen DX Infrastructure(Zero Trust Network) ⇒ P69

Information Security Committee
Secretariat Information

Security Secretariat

Information
Security Managers

Information Security
and Internal Audit
Managers

Departments
Information
Security Promoters

Information
Security Promoters

Quality Control in the Supply Chain
The Group recognizes that our social mission is to provide a stable supply of nonferrous metals and materials in order to contribute to
the sustainable development of society. Based on this policy, we aim to improve the level of quality control throughout the entire supply
chain.

Information
Security Promoters

JX Metals Group Basic Quality Policy
The JX Metals Group hereby sets forth, and acts in observance of, this Basic Quality Policy in order to contribute to the development of asustainable society while recognizing that its social mission is to stably supply nonferrous metals and materials.
1.G rasp the requirements of customers and society correctly in order to offer products and services that customers can trust and that satisfy theirneeds.
2.Improve and maintain quality in all processes from development, design, and production to delivery, while paying due attention to safety andenvironmental conservation.
3. Establish a quality management system, carry out continual improvements, and develop human resources.
4. C omply with all pertinent laws and regulations of Japan and other countries, and provide customers and society with accurate information on
quality.

Sustainability Report 2023 102

Section 3 Materiality and ESG Management

Materiality 6

Strengthen Governance

Governance

Establishing and Operating a Quality
Management System
The Group has and operates a quality management system(QMS) to realize our Basic Quality Policy. We work to continually
make quality improvements through steady PDCA cycles, aiming to realize better quality through the QMS. As one measure,
Company sites both in Japan and overseas have acquired QMS
third-party certification (ISO 9001, etc.).
In addition, the Group reviews quality improvement activities
and establishes action plans through the Quality Management
Meeting, which is made up of top management. We also holdQuality Meetings twice annually to share information on quality
management. Participants share the action plans adopted at
Quality Meetings and share issues encountered and good practices found at each manufacturing site, fostering interactions
among managers. Furthermore, we are working to improve theeffectiveness of internal quality audits, automate inspections,and strengthen the training of quality control personnel.

Main Manufacturing Sites With Third-Party QMS
Certifications[Domestic]• Isohara Works, Kurami Works, Hitachi Works (Copper Foil
Department)• Ichinoseki Foil Manufacturing Co., Ltd.
• Kitaibaraki Precision Co., Ltd.
• J X Nippon Coil Center Co., Ltd. (Kurami Office, Kawasaki
Office)• JX Metals Trading Co., Ltd. (Takatsuki Plant)• J X Metals Smelting Co., Ltd. (Saganoseki Smelter & Refinery,

Quality Control Department Activities

Quality Assurance Initiatives With Suppliers

The Quality Control Department is in charge of planning, proposal, promotion, and oversight for enhancement of Group-wide
quality control. This department is also engaged in clarifying
Group-wide QMS requirements, improving the effectiveness ofinternal quality audits, supporting quality improvement activities
and quality control training at manufacturing sites, introducing
DX to quality management tasks.
In fiscal 2022, we conducted internal quality audits on-site
at a total of 20 sites (eight overseas and 12 domestic) in accordance with each site’s response measures (guidelines) against
COVID-19.

Cooperation with suppliers is essential for thorough quality assurance. Our efforts include conducting regular evaluations andquality audits for JX Metals Group suppliers based on quality
control criteria and requirements, reducing quality risks, andimproving the quality level of our suppliers. We also conduct
Supplier Surveys to promote mutual understanding with our
suppliers.

Hitachi Works)• JX Metals Resources Exploration & Development Co., Ltd.
• J X Metals Precision Technology Co., Ltd. (Esashi Works,
Nasu Works, and Kakegawa Works)• TANIOBIS Japan Co., Ltd. (Head Office, Mito Plant)• Tokyo Denkai Co., Ltd.
•T
 oho Titanium Co., Ltd. (Head Office/Chigasaki Plant, Hitachi
Plant, Yahata Works, Wakamatsu Works, Kurobe Works)• Japan Copper Casting Co., Ltd. (Saganoseki Works)• Furuuchi Chemical Corporation

On-site audit[Overseas]• Nippon Mining & Metals (Suzhou) Co., Ltd.

Promotion of Personnel Quality Education
The Group ensures that all employees are thoroughly familiar
with the Basic Quality Policy through quality control training. In
addition, we provide quality control training to all employees toimprove their problem identification and resolution capability,
help them to logically infer the root cause of a problem, independently resolve problems and improve the quality of theirwork. These training programs range from introductory to advanced courses according to the level of the participants andreflect carefully planned courses according to job rank and yearsof employment, and have become an established part of employee training.
Starting in fiscal 2020, the Company’s Quality Control Department began encouraging internal quality auditors to acquire
qualifications such as QMS Auditor, and conducting review
training performed by outside instructors to improve
competence.

• Nikko Fuji Precision (Wuxi) Co., Ltd.
• JX Nippon Mining & Metals Dongguan Co., Ltd.
•N
 ikko Metals Taiwan Co., Ltd. (Longtan Works, Kuanyin
Works)• JX Metals Philippines, Inc.
• JX Metals USA, Inc.

Liability Claims• JX Metals Korea Co., Ltd.

In fiscal 2022, no claims were pursued under the Product Liability Act due to personal or property damage caused by defects
in products made by Group companies.

• TANIOBIS GmbH (Goslar)• TANIOBIS Smelting GmbH & Co. KG (Laufenburg)
Quality Meetings• TANIOBIS Co. Ltd. (Map Ta Phut)• Materials Service Complex Malaysia Sdn. Bhd.
• Materials Service Complex Coil Center (Thailand) Co., Ltd.
• SCM Minera Lumina Copper Chile

Providing Information on Products andServices
In accordance with the Basic Quality Policy, the Group provides
customers with information on our products and services
through product specifications and Safety Data Sheets (SDS)*.
For example, sulfuric acid sold by Group companies is designated as a deleterious substance under Japan’s Poisonous andDeleterious Substances Control Act. By limiting our business
partners to sellers of poisonous or deleterious substances andissuing SDSs, we strive to prevent serious negative effects on
the occupational health and safety for our customers and theiremployees after delivery.

Quality control training* Safety Data Sheet (SDS): A document containing information on the hazards andtoxicity of chemicals to ensure safe handling

103 JX Metals Corporation

Sustainability Report 2023 104

Environmental Management

ESG Data Book

Operating Sites That Have Obtained ISO 14001 Certification (as of March 31, 2023)
Domestic Operating Sites: 27

Mass Balance Table for the Group (FY2022)
INPUT

Overseas Operating Sites: 16

Hitachi Works of JX Metals Corporation (including Technology Development Center, Hitachi Worksof JX Metals Smelting Co., Ltd., and JX Metals Environmental Services Co., Ltd.)JX Nippon Mining & Metals Philippines, Inc.

Copper Foil Dept. of JX Metals Corporation (including Hitachi Office of JX Nippon Foundry Co.,
Ltd. and Ichinoseki Foil Manufacturing Co., Ltd.)

Materials Service Complex Malaysia Sdn. Bhd.

Isohara Works of JX Metals Corporation
Kurami Works of JX Metals Corporation (including JX Nippon Coil Center Co., Ltd. and the Kurami
Office of JX Metals Trading Co., Ltd.)

EnergyPrimary raw materials

JX Metals Tomakomai Chemical Co., Ltd.

TANIOBIS GmbH (including TANIOBIS Smelting
GmbH & Co. KG, TANIOBIS Co., Ltd., andTANIOBIS Japan Co., Ltd.)

Domestic operating sites

2,604 TJ

Overseas operating sites

15 kt

Overseas operating sites

2,263 TJ

Recycled raw materials

4,867 TJ

Total

Electricity and heat*
222 ktDomestic operating sites

4,727 TJ

Overseas operating sites

11 kt

Overseas operating sites

3,563 TJ

233 ktJX Nippon Mining & Metals Dongguan Co., Ltd.

Valleyfield, Mississauga, Airdrie, and Chilliwackof eCycle Solutions, Inc.

8,289 TJ

Total

Shirakawa Plant of JX Metals Takasho Co., Ltd.
millioncubic meters

Domestic operating sites

17.4

Overseas operating sites

10.2 cubic meters27.6 million
cubic meters

Total

JX Metals GroupmillionDomestic operating sites

37.3 cubic meters

Overseas operating sites— cubic meters

million

37.3

Total

Tsukuba Factory of Furuuchi Chemical Corporation

millionSeawaterDomestic operating sites

Total

Esashi Works, Nasu Works, and Kakegawa Works of JX Metals Precision Technology Co., Ltd.

Fresh water

1,597 kt

1,611 kt

Longtan Works of Nikko Metals Taiwan Co., Ltd.

Amagasaki Office of JX Metals Trading Co., Ltd. (including Takatsuki Plant)

FuelDomestic operating sites

Total

Nikko Fuji Precision (Wuxi) Co., Ltd.
Nippon Mining & Metals (Suzhou) Co., Ltd.

Chigasaki Plant of Toho Titanium Co., Ltd. (including its Kurobe Plant and Wakamatsu Plant andToho Technical Service Co., Ltd.)

Water Resources

JX Metals Korea Co., Ltd.

Saganoseki Smelter & Refinery of JX Metals Smelting Co., Ltd. (including Japan Copper CastingCo., Ltd., and JX Metals Smelting Logitech Co., Ltd.)JX Metals Mikkaichi Recycle Co., Ltd.

Raw Materials

JX Metals USA, Inc.

millioncubic meters* Includes thermal energy (consuming steam, hot water, andcold water) supplied by third parties

Raw Materials
Ratio of Recycled Raw Materials (FY2022)
Ratio of recycled raw materials in incoming raw materials for

Ratio of copper from recycled raw materials in electrolytic

the copper smelting businesscopper

14.9%

24.8%

Definition of Recycled Raw Materials(1) Ratio of recycled raw materials in incoming raw materials for the copper smelting business(total dry volume of recycled raw materials processed at JX Metals Smelting Co., Ltd.*1) ÷ (total dry volume of primary and recycled raw materials processed at JX Metals Smelting Co., Ltd.) x 100 (Unit: %)OUTPUT*1 However, the dry volume of recycled raw materials before pretreatment is calculated based on the pretreatment residue ratio if recycled raw materials are pretreated at JX
Metals plants or affiliates, other than JX Metals Smelting Co., Ltd. and the dry volume of recycled raw materials before pretreatment is available.

(2) Ratio of copper from recycled raw materials in electrolytic copper(amount of copper derived from recycled raw materials in copper anodes per year*2) ÷ (copper anode charge per year)

Emissions

Principal Products
Copper concentrate

329 ktElectrolytic copper

427 ktGold

41 t

Silver334 t

Platinum

629 kgPalladium

2,631 kg

Other metals (selenium, tellurium)
Electro-deposited androlled copper foil

8 kt
26 kt

Titanium sponge

22 kt

105 JX Metals Corporation

CO2

Sulphur oxides

Nitrogen oxides

Total of domestic operating sites

Domestic operating sites

Domestic operating sites

386 kt193 kt4.5 ktScope 1
Scope 2

1,208 kt

Overseas operating sites

Total of overseas operating sites

Scope 1
Scope 2Total

152 kt66 kt

797 kt311 t

Copper alloy, special steel
strips, etc.

Sulfuric acid (by-product)*2 Cumulative 12-month total of figures calculated monthly with (monthly copper anode charge in the electrorefining process at JX Metals Smelting Co., Ltd.) x (ratio of copperfrom recycled raw materials in copper anode*3).
*3 (Total amount of copper in recycled raw materials processed by JX Metals Smelting Co., Ltd. for the month) x (copper yield at Saganoseki Smelter & Refinery for the month)÷ (total copper in net copper production at Saganoseki Smelter & Refinery for the month)*4 In the electrorefining process, copper anodes are electrolyzed to produce electrolytic copper. Here, there is no input of copper components other than copper anodes.
Therefore, the recycling ratio in copper anodes charged in the process is equal to the recycling ratio in electrolytic copper.

Total

0.0 kt4.5 kt0.3 ktTotal

EnergyEnergy Consumption

Energy Consumption in Logistics Stages (Domestic)(calorific value, terajoules)

Total of domestic operating site

(calorific value, terajoules)

Total of overseas operating sites

800

20,00015,000

Final disposal ofwaste materials

13.3 kt
Overseas operating sites

Wastewater
Domestic operating sites
million53.8 cubic meters

Total

59.9 kt

13,463

10,000

million

1.1 cubic meters
Total

cubic meters
54.9 million

0

670

2020

2021

625

600

13,157

13,079

677

6,206

5,920

5,826

7,258

7,159

7,331

400

200

5,000

Overseas operating sites

46.6 kt

Total of domestic operating sites

0.39 kt

Overseas operating sites

0.0 ktDomestic operating sites

Chemical substances(release and transfer)

0.3 kt

0
2020

2021

2022

(FY)

* Energy consumption is calculated by applying the calorific value conversion coefficients for fuel and electricity as stipulated in the Act on Rationalizing Energy
Use (currently, the Act on Rationalizing Energy Use and Shifting to Non-fossil
Energy)* We revised calorific value conversion coefficients applied to electricity consumption, retroactively revising figures to fiscal 2020. (3.6 MJ/kWh is applied for electricity consumption)

2022

(FY)

*Applicable to specified consigners as defined in the Act on Rationalizing Energy
Use. Four Group companies fall under this definition: JX Metals Corporation, JX
Metals Smelting Co., Ltd., Kasuga Mines Co., Ltd., and Pan Pacific Copper Co.,Ltd.

Sustainability Report 2023 106

ESG Data Book
Breakdown by Fuel Type

Climate Change
Domestic Operating Sites

Overseas Operating Sites

Kerosene (kL)1270Gasoline (kL)

130

153

Light oil (kL)

2,940

55,260Class A heavy oil (kL)

7,895

0

Class B and C heavy oil (kL)

14,8470

Reclaimed oil (kL)

2,664

0

LPG/Butane (t)

5,657

40

LNG (t)

3,880

683

Coke (t)1,3110Petroleum coke (t)

4,326

0

City gas (thousand cubic meters)

17,2913,018

CO2 Emissions From the Entire JX NMM Group (Scope 1 & 2)
(Thousand tons of CO2)
1,500

0

(million cubic meters)

60

52.5

54.9

53.6

1.0

1.1

1.1

51.5

52.5

53.8

40

40

54.7

51.1

48.8

20

20
0

0

2020

2021

Total Water Usage*
SeawaterIndustrial water

0.8(1.4%)

2021

2022

(FY)

Total Water Discharge*
Groundwater

Tap water

Rainwater

0.9(1.4%)
19.6(30.2%)FY2021
61.0

million cubic meters

Oceans0.0(0.0%)FY202264.9

7.1(11.0%)

Rivers

FY2021
53.6

million cubic meters

2020

282
2021

2022

0.6
(1.1%)

12.6(23.0%)SOx Emissions

NOx Emissions(kt)

Total of domestic operating sites

(kt)

8

Total of overseas operating sites

4

4.5

4.5
0.1

0.1

0.0

4.1

4.4

4.5

million cubic meters2

41.7(75.9%)

37.3(57.5%)

0

2020

Water Pollutants

2021

2022

(t)

Total of domestic operating sites

90

Total of overseas operating sites

90

Total of overseas operating sites

(FY)

61.3

0

58.0

(kt)

0
0

0

60

43.8
61.3

30

68.4

58.0

8.6

7.3

30

35.2

0

2020

2021

2022

(FY)

* Totals are for operating sites subject to legal requirements (sites that discharge water into
oceans).

107 JX Metals Corporation

0

2020

43.1

37.1

29.8
2021

8.5
34.6

0.3

0.0

0.0
0.3

0.3

0.0

2020

2021

2022

(FY)

* Totals are for operating sites subject to emissions regulations.

Total Discharge Volume by Type of Waste Materials
Sludge59.9

Cinders

Waste oil

54.4

20.9
(18.7%)
4.5(4.0%)

20

68.4

0.3

0.6

40

Total of domestic operating sites

0.1

0.2

Volume of Final Disposal of Waste

49.0

(t)

0.7

Waste Materials and By-Products

60

BOD Load

Total of overseas operating sites

0.6* Totals are for operating sites subject to emissions regulations.

COD Load

(FY)

2022

Total of domestic operating sites

1.0
0.8

4.2

*1 Seawater usage at the Saganoseki Smelter & Refinery of JX Metals Smelting Co., Ltd. is calculated based on pumping capacity. Freshwater usage at the Saganoseki Smelter & Refineryof JX Metals Smelting Co., Ltd. and water usage at other operating sites are based on flowmeter readings or on invoices from the site’s respective water utility.
*2 T he volume of water discharged into public waters (oceans and rivers) at each operating site represents the following: an amount calculated based on drainage weirs (Hitachi Works ,Isohara Works, JX Metals Tomakomai Chemical Co., Ltd., and JX Metals Mikkaichi Recycle Co., Ltd.); an amount obtained by multiplying groundwater usage by a fixed rate (Kurami
Works, Toho Titanium Co., Ltd.’s Chigasaki Plant); an amount from invoices (Toho Titanium Co., Ltd.’s Yahata Plant and Kurobe Plant); or an amount based on flowmeter readings (otheroperating sites). The volume of water discharged into the sewage system at each operating site represents the following: an amount calculated based on daily water discharge (TANIOBISCo., Ltd.); or an amount based on flowmeter readings or on invoices from the site’s respective sewage utility for other operating sites.

60

2021

* Applicable to specified consigners as defined in the Act on Rationalizing Energy
Use. Four Group companies fall under this definition: JX Metals Corporation, JX
Metals Smelting Co., Ltd., Kasuga Mines Co., Ltd., and Pan Pacific Copper Co.,
Ltd.

0.4

FY202254.9

38.6(71.9%)

0

(FY)

6

Sewage systems

0.6(1.2%)

14.4(26.9%)

million cubic meters

33.4(54.7%)

2020

43.7

Air Pollutants

2

0.0(0.0%)

7.3(11.9%)

2020

(FY)

2022

1

19.5
(32.0%)

Total of domestic operating sites
Total of overseas operating sites

100

10.2

9.9

8.9

46.8

25

Scope1
386
Scope2
193* Scope 1 emissions are those from energy consumption (fuel), emissions fromincineration of waste materials (waste oil, waste plastic, sludge, waste wood),
and emissions from reducing agents, neutralizing agents, graphite electrodes,
and recycled materials, converted to equivalent CO2.
* Scope 2 emissions are those from electricity or heat consumption converted toequivalent CO2.This figure includes emissions from thermal energy (consuming
steam, hot water, and cold water) supplied by third parties.The emission factors
applied for Scope 2 calculation are as follows for domestic and overseas Group
operating sites, respectively.
Domestic: The latest adjusted emission factors per electric power utility publishedby the Ministry of the Environment and the Ministry of Economy, Tradeand Industry are applied
Overseas: Emission factors published by local power companies, national
governments, or country-specific emission factors published in the
IEA Emission Factors 2022, issued by the International Energy Agency(IEA), are applied

80

60

47.6

50

Scope1
152
Scope2
66

797

383
488

64.9

61.0

155
73

416

80
57.8

892

500

Total of domestic operating sites
Total of overseas operating sites

100

279

1,000

Water Discharge*2(million cubic meters)(Thousand tons of CO2)

Total of domestic operating sites
Total of overseas operating sites

162

Water Resources
Water Usage*1

1,345

CO2 Emissions in Logistics Stages

2020

2021

2022

(FY)

1.8
(1.7%)

2.8(2.5%)

Waste plastics

Acid/Alkaline waste

12.6(11.3%)

Slag

65.0(58.2%)FY2021111.6 kt
3.9
(3.5%)

Other

13.0(12.5%)
3.6(3.5%)
2.2(2.1%)
3.6(3.5%)

12.7(12.3%)

65.3(62.8%)FY2022103.8kt
3.5(3.4%)* These do not include the approximately 26.2 million tons of slag from the Caserones Copper Mine.
* Calculations include the final disposal volumes of Toho Titanium Co., Ltd.’soffshore landfill volume and the TANIOBIS Group.

2022 (FY)* Totals are for operating sites subject to legal requirements (sites that discharge water into rivers
or streams).

Sustainability Report 2023 108

ESG Data Book

Occupational Health and Safety

By-Product Production
Sulfuric acid72
(3.7%)Slag

GypsumIron concentrate

71(3.6%)

Occupational and Other Accidents*1, *2

99(4.3%)

78(3.4%)

Category

2020

FY2021
1,961kt

Fatalities (persons)*

0

Accidents with lost work days (persons)*3

771(39.3%)

1,047(53.4%)

907(39.6%)

1,208(52.7%)

Employees(including Group
companies)

Chemical Substances

0

0

0

0

7

10

3

Accidents without lost work days (persons)*3

13

24

27

Total (persons)

20

34

30

Strain or overexertion (persons)

5

6

2

Falls on same level (persons)

1

3

4

Caught in, on, or between machinery(persons)

3

1

7

Fatalities*

0.00

0.00

0.00

Occupational accidents with severe
consequences*3

0.00

0.00

0.00

Accidents with lost work days*3

0.53

0.74

0.21

0.03

0.03

(kt)

Release volume

0.01

13,290,060

13,442,362

14,365,459

Fatalities (persons)

2

0

0

Occupational accidents with severe
consequences (persons)

0

0

0

Accidents with lost work days (persons)

2

6

4

Accidents without lost work days (persons)

6

13

13

Total (persons)

10

19

17

Cut or abrasions (persons)

4

4

1

Crashes or falls to lower level (persons)

2

2

2

Struck by object (persons)

0

0

1

Fatalities*3

0.64

0.00

0

Occupational accidents with severe
consequences*3

0.00

0.00

0

Accidents with lost work days*

0.64

1.94

1.47

4.82

0.11

0.04

Cumulative work hours*6

3,117,548

3,090,280

2,726,924

Total casualties (persons)

30

53

47

Occupational injury rate per 1,000 employees (four or more lost
workdays)*7

Major types ofoccupational
accidents*43Volumes of Release and Transfer of PRTR Substances

Frequency rate ofoccupational
accidents*5

Breakdown of Release Volumes of PRTR Substances

Transfer volume(kt)

On-site landfill disposal

Water

Severity rate of occupational accidents*5

Air

Cumulative work hours*5

0.8

0.08

0.6

0.06

0.50
0.42

0.39

0.4
0.2

2020

0.05

0.05

0.06

0.0

2021

0.052

0.04

0.038

0.02

0.018

0.34

0.37

0.45

0.056

2022

2020

0.051
0.035

0.038

0.017

0.013
0.0

0.0

0.0

0

(FY)

2021

Safetyperformance atdomestic
operating sites

2022

Volumes of Release and Transfer of Major PRTR Substances in FY2022
No.

CabinetOrder No.

Air

Transfer Volume
On-Site Landfill
Disposal

Water

SewageSystems

3

31 Antimony and its compounds

0.1

0.6

0.0

0.0

6.5

2

75 Cadmium and its compounds

0.1

0.1

0.0

0.0

13.4

3

132 Cobalt and its compounds

0.0

0.2

0.0

0.0

9.1

5
6
7
8

272 Copper salts (water soluble)
300 Toluene
305 Lead compounds
309 Nickel compounds
405 Boron compounds

0.3
35.1
0.8
0.1
0.0

1.6
0.0
0.1
0.4
5.4

0.0
0.0
0.0
0.0
0.0

0.0
0.2
0.0
0.0
0.0

1.1

1.7

0.74

Explosions and fires (incidences)*8

1

0

2

235.0

Fatalities (persons)

0

０

0

47.8

Accidents with lost work days (persons)

13

19

17

8.9

Accidents without lost work days (persons)

5

7

5

Total (persons)

18

26

22

Caught in, on, or between machinery(persons)

3

8

3

Falls on same level (persons)

5

4

1

Strain or overexertion (persons)

3

3

1

7.0

1.5
(g-TEQ)

9243 Dioxins

0.1

0.0

0.0

0.0

2.9

The values given are the total amount reported by operating sites subject to reporting requirements under the PRTR Act (the domestic companies defined in Scope of this Reporton page 4 as subject to Environment section reporting). Of the 49 chemical substances subject to reporting, those totaling at least 5.0 tons in any category, and dioxins, arelisted here. There were no cases of chemical substances released into the soil.

109 JX Metals Corporation

Severity rate of occupational accidents*5,6

Waste Materials

1

4

Major types ofoccupational
accidents*4

Frequency rate ofoccupational
accidents*5,6(t)

Release Volume
Chemical SubstanceCasualties ofoccupational
accidents*4

Employees ofsubcontractors*6

(FY)

2022
0

Casualties ofoccupational
accidents

FY2022
2,291kt

2021

Occupational accidents with severe
consequences (persons)*3

3(Reference)
Safety performance at overseas
operating sites*9

Major types ofoccupational
accidents*1 Safety performance data is compiled on a calendar year basis (January to December).
*2 The number of casualties presented in this table includes work-related illnesses such as back pain and heat stroke.
*3 E
 ach accident category is defined as follows.
• Fatalities: Worker deaths resulting from work-related causes.
• Occupational accidents with severe consequences: Accidents resulting in more than six months of lost work days or a disability grade.
•A ccidents with lost work days: Accidents requiring one or more days of absence from work for the purpose of examination, treatment or recuperation. These shall in principle be ata physician’s discretion. Note that this excludes “Occupational accidents with severe consequences.”•A ccidents without lost work days: An accident that does not require one full day or more of absence from work as diagnosed by a physician, and in which the affected worker is able
to go to work after the accident.
*4 Incidences related to the cause of the injury or illness, based on “Types of Accidents,” published by the Ministry of Health, Labour and Welfare.
*5 B oth the frequency rate (the number of persons harmed or killed due to occupational accidents per million cumulative actual work hours) and the severity rate (number of work days
lost per thousand cumulative actual work hours) cover Company employees and employees at other Group companies (including Toho Titanium).
*6 S afety statistics for subcontractor employees include not only those stationed permanently but also spot vendors. Note that these are subject to statistics for frequency rate and severity rate as of 2020. Cumulative work hours are calculated as follows: Number of permanently stationed subcontractor employees at the end of each month x number of operatingdays x 8 hours/day.
(Reference) In 2022, the frequency and severity rate of occupational accidents for all businesses in Japan were 2.06 and 0.09, respectively (Source: Ministry of Health, Labour andWelfare, “Survey on Industrial Accidents”)*7 The Group defines a serious accident as one that results in four or more lost work days, and considers the occupational injury rate per 1,000 employees to be one of our key indicatorsfor evaluation.
(Occupational injury rate per 1,000 employees (four or more lost workdays) = number of casualties with four or more lost workdays ÷ total number of employees (including employeesof regular partner companies) x 1,000)*8 No physical injuries were caused as a result of explosions/fires.
*9 While this includes Group companies and subcontractors, this data should be used only for reference as it is difficult to conduct follow-up surveys and aggregate working hours for
subcontractors at overseas operating sites, and detailed data such as frequency rates are not disclosed.

Sustainability Report 2023 110

ESG Data Book
No. of Employees (by Region; as of March 31, 2023)

Human Resource Development

Japan

Managerial Staff
Male

Total annual program hours (hours)
Program hours per employee(hours/person)

North America

South America

6,575

270

947

Female

890

102

95

430

70

0

1,587

Total

7,465

372

1,042

1,463

407

10

10,759Male

Training Programs Implemented in FY2022
FemaleNon-Management Employees
Total

Male

Female

Total

Total

Male

9,486

379

9,865

62,507

11,53074,03671,993

Female11,909Total

83,902

22

9

21

57

24

47

47

23

41

Employment and Work Styles
Survey scope: 	Companies in which JX Metals has 50% or more of their voting rights, directly or indirectly
Treatment of seconded employees: 	Employees seconded from companies outside of survey scope to companies inside of survey scope arecounted.Employees seconded from companies inside of survey scope to companies outside of survey
scope are also counted.

No. of Employees (by Employment Status and Employment Contract Type; as of March 31, 2023)(persons)

Full-time

Female

8,449

1,383

9,832

Contracts with
fixed terms

634

133

767

9,083

1,516

10,599Contracts
without fixed
terms

31

47

78

Contracts with
fixed terms

58

24

82

89

71

160

9,172

1,587

10,759Full-time

Contract Type

Part-timePart-time subtotal
Total

111 JX Metals Corporation

Female(persons)

Total

No. of new hires

880

181

1,061

Percent of total employee
count as of March 31, 2023

10%

11%

10%

Age 29or Younger Age 30 to 49

Age 50or Older

Total

408

520

133

1,061

26%

8%

5%

10%
(persons)

North
America

Japan

South
America

Asia

EuropeMiddle East

Total

No. of new hires

672

100

206

71

12

0

1,061

Percent of total employee count as of March 31,
2023

9%

27%

20%

5%

3%

0%

10%

(persons)

Male

FemaleTotal

No. of retiring employees

575

129

704

Percent of total employee countas of March 31, 2023

6%

8%

7%

North
America

Japan

South
America

North
America

Japan

Asia

EuropeMiddle East

Total

(persons)

Age 29or Younger

Age 50or OlderAge 30 to 49

Total

178

326

200

704

11%

5%

7%

7%

South
America

Asia

EuropeMiddle East

Total

No. of retiring employees

276

135

151

128

14

0

704

Percent of total employee count as of March 31,
2023

4%

36%

14%

9%

3%

0%

7%

* Employees retiring at the mandatory retirement age are not in scope.

Contracts
without fixed
terms

6,763

371

949

1,389

350

10

9,832

Contracts with
fixed terms

567

1

93

70

36

0

767

Full-time subtotal

9,172

No. of Employees Ending Employment (April 1, 2022 to March 31, 2023)(persons)

Employment Status

Total
10

(persons)

Part-time subtotal
Total

Middle East
337

Total

Contracts
without fixedterms

Full-time subtotal

Part-time

Male

Europe1,033(persons)

Male

Contract TypeAsia

No. of Newly Hired Employees (April 1, 2022 to March 31, 2023)* Survey scope: Employees of JX Metals plus those seconded by the Company to JX Metals Environmental Services Co., Ltd. and JX Metals Smelting Co., Ltd.
(Saganoseki Smelter & Refinery, Hitachi Works)

Employment Status(persons)

Membership in Labor Unions (as of March 31, 2023)
7,330

372

1,042

1,459

386

10

10,599Contracts
without fixed
terms

56

0

0

3

19

0

78

Contracts with
fixed terms

79

0

0

1

2

0

82

135

0

0

4

21

0

160

7,465

372

1,042

1,463

407

10

10,759(persons)

Male

Female(persons)

Age 29or Younger

Total

Age 30 to 49

Age 50or OlderTotal

No. of union members

5,690

889

6,579

1,212

4,045

1,322

6,579

Unionization rate

62%

56%

61%

76%

64%

46%

61%

Sustainability Report 2023 112

ESG Data Book

Diversity
Use of Childcare Leave in FY2022 (JX Metals)

Independent Assurance Report(persons)

Male

FemaleNo. of employees using leave

22

Total
10

32

No. of employees eligible to use leave*

122

10

132

Percentage

18%

100%

24%

To the President & Representative Director of JX Metals Corporation* Male: Employees with a child born within the fiscal year
Female: Employees whose post-childbirth leave ended during the fiscal year and who can take childcare leave

We were engaged by JX Metals Corporation (the “Company”) to undertake a limited assurance engagement of the environmental and social

Retention Rate After Childcare Leave (Percentage of Those Still Employed 12 Months After Returning From Leave)(JX Metals)
Female(the “Indicators”) for the period from April 1, 2022 to March 31, 2023 included in its Sustainability

Report 2023 (the “Report”) for the fiscal year ended March 31, 2023.
The Company’s Responsibility(persons)

Male

performance indicators marked withTotal

The Company is responsible for the preparation of the Indicators in accordance with its own reporting criteria (the “Company’s reporting

No. of employees who returned to work fromchildcare leave during FY2021

17

12

29

No. of employees still employed 12 months after
returning to work

15

12

27

Our responsibility is to express a limited assurance conclusion on the Indicators based on the procedures we have performed. We conducted

88%

100%

93%

our engagement in accordance with the ‘International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements other thancriteria”), as described in the Report.
Our Responsibility

Percentage

Audits or Reviews of Historical Financial Information’ and the ‘ISAE 3410, Assurance Engagements on Greenhouse Gas Statements’ issued by
the International Auditing and Assurance Standards Board. The limited assurance engagement consisted of making inquiries, primarily ofRate of Return to Work After Childcare Leave (JX Metals)

persons responsible for the preparation of information presented in the Report, and applying analytical and other procedures, and the(persons)

Male

Femaleis thus not as high as that provided by a reasonable assurance engagement. Our assurance procedures included:

No. of employees who returned to work fromchildcare leave during FY2022

22

16

38

No. of employees scheduled to return to work

22

16

38

100%

100%

100%

Percentage

procedures performed vary in nature from, and are less in extent than for, a reasonable assurance engagement. The level of assurance provided

Total• Interviewing the Company’s responsible personnel to obtain an understanding of its policy for preparing the Report and reviewing theCompany’s reporting criteria.
• Inquiring about the design of the systems and methods used to collect and process the Indicators.
• Performing analytical procedures on the Indicators.
 xamining, on a test basis, evidence supporting the generation, aggregation and reporting of the Indicators in conformity with the Company’s•E

Status of Rehiring Efforts in FY2022 (JX Metals)(persons)

No. of age-limited retirees

62

No. of these rehired

54

Percentage

reporting criteria, and recalculating the Indicators.

Persons With Disabilities as a Percentage of the
Workforce in FY2022 (JX Metals)• Visiting the Company’s Kurami Works and making inquiries and reviewing materials including documented evidence of the Saganoseki Smelter

Percentage of employees with disabilities(statutory minimum: 2.3%)• Evaluating the overall presentation of the Indicators.

2.10%& Refinery of JX Metals Smelting Co., Ltd. as alternative procedures to a site visit, selected on the basis of a risk analysis.
Conclusion

87%

Based on the procedures performed, as described above, nothing has come to our attention that causes us to believe that the Indicators in theNo. of Locally Hired Senior Managers Overseas (Section Manager or Above) and Locally Hired Employees (as ofMarch 31, 2023)(persons)

Number of Senior
Managers

Senior Managers as
a Share of Locally
Hired Employees*1

Number of Locally
Hired Employees*2

Male

40

15%

270

Female77%102

North America subtotal

47

13%

372

Male

65

7%

947

North America

South America

Our Independence and Quality Management
We have complied with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants,
which includes independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence anddue care, confidentiality and professional behavior. In accordance with International Standard on Quality Management 1, we design, implement
and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional
standards and applicable legal and regulatory requirements.

6

6%

95

South America subtotal

71

7%

1,042

Male

51

15%

337

KPMG AZSA Sustainability Co., Ltd.

Female8

11%70Tokyo, Japan

59

14%

407

February 9, 2024

149

14%

1,033

EuropeFemaleReport are not prepared, in all material respects, in accordance with the Company’s reporting criteria as described in the Report.

Europe subtotal
Asia

Male

67

16%

430

Asia subtotal

Female

216

15%

1,463

Total

393

12%

3,284

/s/ Kazuhiko Saito
Kazuhiko Saito, Partner, Representative Director

Notes to the Reader of Independent Assurance Report:
This is a copy of the Independent Assurance Report and the original copies are kept separately by the Company and KPMG AZSA Sustainability Co., Ltd.

Scope of aggregation: Overseas Group companies in which JX Metals has 50% or more of their voting rights, directly or indirectly.
Treatment of seconded employees: Employees seconded from companies outside of survey scope to companies inside of survey scope are counted.
Employees seconded from companies inside of survey scope to companies outside of survey scope are also counted.
*1 Percentage calculated as (Number of senior managers ÷ Number of locally hired employees) x 100*2 T he number of employees directly employed by overseas subsidiaries, excluding employees on secondment and employees transferred to overseas subsidiaries

113 JX Metals Corporation

Sustainability Report 2023 114

ESG Data BookGRI Standards Content Index
GRI 1: Foundation 2021

No.

the statement of

JX Metals Corporation referenced the GRI Standards to report the information in this table for the relevant period (April 1, 2022 touse;

March 31, 2023).

the title of GRI 1
used;

Disclosure

2-25

Processes to remediate negative impacts

2-26

Mechanisms for seeking advice and raising concerns

P89: Human Rights Education and Internal
Awareness RaisingP97-99: Rigorous Compliance

2-27Compliance with laws and regulations

P65: Environmental Management
P97-99: Rigorous ComplianceP102-104: Quality Control in the Supply Chain

GRI 1: Foundation 2021

No.

Disclosure

References / Reason for Omission

References / Reason for Omission
P33-36: Special Feature 2 Sustainable Copper Vision
P89: Human Rights Education and Internal
Awareness RaisingP97-99: Rigorous Compliance

GRI 2: General Disclosures 2021
2-1

Organizational details

P17-18: Global Network

2-2

Entities included in the organization’s sustainability reporting

P4: Sustainability Report 2023

2-3

Reporting period, frequency and contact point

P4: Sustainability Report 2023
Back cover

2-28

Membership associations

P19-20: Responding to International Norms andInitiatives

2-4

Restatements of information

N/A

2-29

Approach to stakeholder engagement

P93: Stakeholder Engagement

2-5

External assurance

P4: Sustainability Report 2023
P114: Independent Assurance Report2-30Collective bargaining agreements

P111-112: E
 SG Data Book (Employment and Work
Styles)Activities, value chain and other business relationships

P13-16: Long-Term Vision and Medium-Term
Management Plan
P17-18: Global NetworkP25-26: Value Creation Model
P27-28: Special Feature 1 Contributing to Sustainable
Societies Through Advanced Materials
P33-36: Special Feature 2 Sustainable Copper VisionP43-44: The JX Metals Group for the Future Society
P45-50: Strategy by Segment

2-6

2-7

Employees

P111-112: ESG Data Book (Employment and Work
Styles)2-8Workers who are not employees―

2-9

Governance structure and composition

P51-52: Materialities and KPIs
P95-96: Corporate Governance

2-10

Nomination and selection of the highest governance body

―

2-11

Chair of the highest governance body

P95-96: Corporate GovernanceRole of the highest governance body in overseeing the management of impacts

P51-52: Materialities and KPIs
P54-61: Initiatives for a Decarbonized Society
P99-102: Risk Management

2-12

2-13

Delegation of responsibility for managing impacts

P51-52: Materialities and KPIs
P54-61: Initiatives for a Decarbonized Society
P99-102: Risk Management

2-14

Role of the highest governance body in sustainability reportingP51-52: Materialities and KPIs

2-15

Conflicts of interest

P95-96: Corporate Governance

2-16

Communication of critical concerns

P97-99: Rigorous ComplianceP99-102: Risk Management

2-17

Collective knowledge of the highest governance body

P51-52: Materialities and KPIs
P97-99: Rigorous Compliance

2-18

Evaluation of the performance of the highest governance body

P95-96: Corporate Governance

2-19

Remuneration policies

P95-96: Corporate Governance

2-20

Process to determine remuneration

P95-96: Corporate Governance

2-21

Annual total compensation ratio

―

2-22

Statement on sustainable development strategy

P7-12: Message From the President

Policy commitments

P1-2: JX Metals Group Code of Conduct
P33-36: Special Feature 2 Sustainable Copper VisionP37-42: Special Feature 3 Human CapitalManagement
P53-65: Contributing to Environmental Conservation
P77-82: Create Attractive Workplaces
P83-89: Respect Human Rights
P94-104: Strengthen Governance

2-23

2-24

Embedding policy commitments

115 JX Metals Corporation

P51-52: Materialities and KPIs
P83-89: Respect Human Rights
P94-104: Strengthen GovernanceNo.

Disclosure

References / Reason for Omission

GRI 3: Material Topics 2021
3-1

Process to determine material topics

P51-52: Materialities and KPIs

3-2

List of material topics

P51-52: Materialities and KPIs

Management of material topics

P51-52: Materialities and KPIs
P53-65: Contributing to Environmental Conservation
P66-76: Provide Advanced Materials That Support
Lives and Lifestyles
P77-82: Create Attractive Workplaces
P83-89: Respect Human Rights
P90-93: Contributing to Environmental Conservation
P94-104: Strengthen Governance

3-3

Topic Standards
No.

Disclosure

References / Reason for Omission

GRI 202: Market Presence 2016
202-1

Ratios of standard entry level wage by gender compared to local minimum wage

―

202-2

Proportion of senior management hired from the local community

P113: ESG Data Book (Diversity)

GRI 203: Indirect Economic Impacts 2016
203-1

Infrastructure investments and services supported

P27-32: S pecial Feature 1 Contributing to Sustainable
Societies Through Advanced Materials
P90-92: Social Contribution Activities

203-2

Significant indirect economic impacts

P27-32: S pecial Feature 1 Contributing to Sustainable
Societies Through Advanced Materials
P90-92: Social Contribution Activities

GRI 205: Anti-corruption 2016
―

205-1

Operations assessed for risks related to corruption

205-2

Communication and training about anti-corruption policies and procedures

P97-99: Rigorous Compliance

205-3

Confirmed incidents of corruption and actions taken

P97-99: Rigorous Compliance

GRI 206: Anti-competitive Behavior 2016
206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

P97-99: Rigorous Compliance

GRI 207: Tax 2019
207-1

Approach to tax

P97-99: Rigorous Compliance

207-2

Tax governance, control, and risk management

P97-99: Rigorous Compliance

207-3

Stakeholder engagement and management of concerns related to tax

P97-99: Rigorous Compliance

207-4

Country-by-country reporting―

GRI 301: Materials 2016
301-1

Materials used by weight or volumeP105: ESG Data Book (Mass Balance Table for theGroup)

301-2

Recycled input materials used

P105: ESG Data Book (Mass Balance Table for theGroup)

301-3

Reclaimed products and their packaging materials―

Sustainability Report 2023 116

ESG Data BookGRI Standards Content Index

No.

Disclosure

References / Reason for Omission

GRI 302: Energy 2016
302-1

302-2

Energy consumption within the organization

P105: ESG Data Book (Mass Balance Table for theGroup)
P106-107: ESG Data Book (Energy)

Energy consumption outside of the organization

P105: ESG Data Book (Mass Balance Table for theGroup)
P106-107: ESG Data Book (Energy)

302-3

Energy intensity

P105: ESG Data Book (Mass Balance Table for theGroup)
P106-107: ESG Data Book (Energy)

302-4

Reduction of energy consumption

P105: ESG Data Book (Mass Balance Table for theGroup)
P106-107: ESG Data Book (Energy)

302-5

Reductions in energy requirements of products and services―

GRI 303: Water and Effluents 2018
303-1

Interactions with water as a shared resource

P64: Other Initiatives for Environmental Conservation

303-2

Management of water discharge-related impacts

P64: Other Initiatives for Environmental Conservation

303-3

Water withdrawal

―

303-4

Water discharge

P105: ESG Data Book (Mass Balance Table for theGroup)
P107: ESG Data Book (Water Resources)

303-5

Water consumption

No.

Disclosure

P105: ESG Data Book (Mass Balance Table for theGroup)
P107: ESG Data Book (Water Resources)

GRI 304: Biodiversity 2016
304-1

Operational sites owned, leased, managed in, or adjacent to, protected areas andareas of high biodiversity value outside protected areas

P62-63: Conservation of Biodiversity

304-2

Significant impacts of activities, products and services on biodiversity

P62-63: Conservation of Biodiversity

304-3

Habitats protected or restored

P62-63: Conservation of Biodiversity

304-4

IUCN Red List species and national conservation list species with habitats in areas―
affected by operations

401-1

New employee hires and employee turnover

P111-112: E
 SG Data Book (Employment and Work
Styles)401-2

Benefits provided to full-time employees that are not provided to temporary orparttime employees

―

401-3

Parental leave

P113: ESG Data Book (Diversity)

GRI 403: Occupational Health and Safety 2018403-1

Occupational health and safety management system

P78-80: Ensure Safety and Promote Health
P110: ESG Data Book (Occupational Health and
Safety)403-2

Hazard identification, risk assessment, and incident investigation

P78-80: Ensure Safety and Promote Health
P110: ESG Data Book (Occupational Health and
Safety)403-3

Occupational health services

P78-80: Ensure Safety and Promote Health
P110: ESG Data Book (Occupational Health and
Safety)403-4

Worker participation, consultation, and communication on occupational health andP78-80: Ensure Safety and Promote Healthsafety403-5

Worker training on occupational health and safety

P78-80: Ensure Safety and Promote Health403-6

Promotion of worker health

P78-80: Ensure Safety and Promote Health403-7

Prevention and mitigation of occupational health and safety impacts directly linked
by business relationships

P78-80: Ensure Safety and Promote Health403-8

Workers covered by an occupational health and safety management system

P78-80: Ensure Safety and Promote Health403-9

Work-related injuries

P78-80: Ensure Safety and Promote Health
P110: ESG Data Book (Occupational Health and
Safety)403-10Work-related ill health―

GRI 404: Training and Education 2016
404-1

Average hours of training per year per employee

P37-42: S pecial Feature 3 Human CapitalManagement
P110: ESG Data Book (Occupational Health and
Safety)404-2

Programs for upgrading employee skills and transition assistance programs

P37-42: S pecial Feature 3 Human CapitalManagement

404-3

Percentage of employees receiving regular performance and career development
reviews―

GRI 305: Emissions 2016
Direct (Scope 1) GHG emissions

P105: ESG Data Book (Mass Balance Table for theGroup)
P108: ESG Data Book (Climate Change)

305-2

Energy indirect (Scope 2) GHG emissions

P105: ESG Data Book (Mass Balance Table for theGroup)
P108: ESG Data Book (Climate Change)

305-3

Other indirect (Scope 3) GHG emissions

P54-61: Initiatives for a Decarbonized Society

305-4

GHG emissions intensity

P108: ESG Data Book (Climate Change)

305-5

Reduction of GHG emissions

P54-61: Initiatives for a Decarbonized Society

305-1

305-6
305-7

Emissions of ozone-depleting substances (ODS)―

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

P105: ESG Data Book (Mass Balance Table for theGroup)
P108: ESG Data Book (Climate Change, Air
Pollutants)

GRI 306: Waste 2020
306-1

Waste generation and significant waste-related impacts

GRI 405: Diversity and Equal Opportunity 2016405-1

Diversity of governance bodies and employees

P37-42: S pecial Feature 3 Human CapitalManagement
P113: ESG Data Book (Diversity)

405-2

Ratio of basic salary and remuneration of women to men―

GRI 406: Non-discrimination 2016406-1

Incidents of discrimination and corrective actions taken

407-1

Operations and suppliers in which the right to freedom of association andcollective bargaining may be at risk

408-1

Operations and suppliers at significant risk for incidents of child labor

Waste generated

GRI 411: Rights of Indigenous Peoples 2016306-4

Waste diverted from disposal SG Data Book (Waste Materials andP108-109: E
By-Products)

GRI 413: Local Communities 2016306-5

Waste directed to disposal SG Data Book (Waste Materials andP108-109: E
By-Products)

GRI 307: Environmental Compliance 2016
Non-compliance with environmental laws and regulations

P65: Environmental Management308-2

New suppliers that were screened using environmental criteria
Negative environmental impacts in the supply chain and actions taken

409-1

411-1

Operations and suppliers at significant risk for incidents of forced or compulsory
labor
Incidents of violations involving rights of indigenous peoples

P83-89: Respect Human Rights

P83-89: Respect Human Rights

413-1

Operations with local community engagement, impact assessments, anddevelopment programs

 oexistence and Co-Prosperity With Local
P90-93: C
Communities

413-2

Operations with significant actual and potential negative impacts on local
communities

P62-63: Conservation of Biodiversity

GRI 414: Supplier Social Assessment 2016

GRI 308: Supplier Environmental Assessment 2016
308-1

P83-89: Respect Human Rights

GRI 409: Forced or Compulsory Labor 2016

 SG Data Book (Waste Materials andP108-109: E
By-Products)

307-1

P83-89: Respect Human Rights

GRI 408: Child Labor 2016
P33-36: Special Feature 2 Sustainable Copper VisionP61-62: Forming a Recycling-Oriented Society
P33-36: Special Feature 2 Sustainable Copper VisionP61-62: Forming a Recycling-Oriented Society

306-3

P83-89: Respect Human Rights

GRI 407: Freedom of Association and Collective Bargaining 2016

Management of significant waste-related impacts

306-2

References / Reason for Omission

GRI 401: Employment 2016

P65: Environmental Management414-1

New suppliers that were screened using social criteria

P83-89: Respect Human Rights

P85-88: Respect Human Rights in Supply Chains

414-2

Negative social impacts in the supply chain and actions taken

P83-89: Respect Human Rights

GRI 416: Customer Health and Safety 2016

117 JX Metals Corporation

416-1

Assessment of the health and safety impacts of product and service categories

416-2

Incidents of non-compliance concerning the health and safety impacts of products
P102-104: Quality Control in the Supply Chainand services

P102-104: Quality Control in the Supply Chain

Sustainability Report 2023 118

We welcome your views and questions regarding this Sustainability Report 2023.
Any opinions provided will be used to improve future reports even further.
Please use our e-mail or post address below to contact us.

JX Metals Corporation ESG Promotion Department
10-4, Toranomon 2-chome, Minato-ku, Tokyo 105-8417, JapanThe Okura Prestige Tower
E-mail: esg_promotion@jx-nmm.com
URL: https://www.jx-nmm.com/english/