Strategy for Co-creating Value with Society
Sustainability at the SMM Group Management Approach
Solving Social Issues through Business
Drawing on the Sumitomo Business Spirit that has been passed down for 430 years since our founding, our Group has consistently endeavored to solve social issues through busi- ness, calling for respect for all individuals and sustainable co-existence with the global environment in our Corporate Philosophy.
We systematized past social- and environment-related |
activities as CSR activities in 2008, and since then have |
advanced such activities primarily through the CSR Commit- |
tee that is chaired by our president. |
As our Vision for 2020, which formed the foundation for |
these activities, had reached its target year, in March 2020 our |
Group formulated and announced the new Vision for 2030 as |
a milestone on the way to our long-term vision of being the |
- Through our efforts to achieve Vision for 2030, we will aim to solve social issues, enhance our corporate value, and make our long-term vision a reality.
Promotion Structure
The SMM Group promotes the Group's sustainability activities -that is, CSR activities-primarily through the CSR Commit- tee. Meeting twice a year, the CSR Committee is chaired by the president, with the CSR executive officer participating as deputy chair, the general managers of divisions, the General Manager of the Technology Division, the General Manager of the Engineering Division, and the heads of operational divisions in the Head Office as committee members, and the CSR Department as secretariat. Specifically, we deliberate and
fy the Vision for 2030. In addition, we also discuss and finalize indicators for evaluating our progress toward the Vision for 2030 and important matters regarding CSR activities, such as those in our annual CSR activity plans. Other activities include regular evaluations of CSR activities and the launch of corrective measures, as well as the provision and exchange of information regarding the promotion of CSR activities, explanations of important issues, sharing of understanding, and deliberation of important themes concerning CSR activi- ties. Through such deliberations by the CSR Committee, we evaluate the progress and performance of CSR activities, review and rework activity plans for the next fiscal year, and carry out the PDCA cycle.
- As subordinate organizations, the CSR Committee has set up seven CSR subcommittees corresponding to material
issues and three working groups: the Risk Management Working Group, Compliance Working Group, and Quality Assurance Working Group. Both the seven CSR subcommittees and the three working groups fall under the oversight of relevant divisions, and set and carry out annual goals and plans in line with KPIs set for individual themes. The seven CSR subcommittees in particular are cross-company organizations with members drawn from business divisions and corporate divisions. These subcommittees engage in CSR activities integrated with our business.
- As an internal control and supervisory function for our CSR activities, the Board of Directors conducts regular or occasional deliberations on the Company's medium- to long-term issues.*
*See p. 94-101.
"world leader in the non-ferrous metals industry." |
decide on CSR policy, material issues, and proposals to modi-
The Process of Formulating Vision for 2030
(Including Identification of Material Issues and Setting of KPIs)
- SMM shall work to combat global warming by promoting recycling and effective resource utilization while also targeting technological innovation and continuous improvements in energy efficiency.
- SMM shall promote sustainable co-existence with society by respecting the needs of the local communities in which we operate around the world.
CSR Policy 3. To continue sound business activities, SMM shall respect human rights and shall try to be a company in which diverse human resources take active parts.
- According safety the highest priority, SMM shall provide safe, comfortable working environments and seek to eliminate occupational accidents.
- SMM shall strengthen communications with all stakeholders to build healthy, trust-based relationships.
To formulate Vision for 2030 and achieve sustainable value | trends have greatly changed, as well as connections to the | ||||
creation, we considered issues remaining from Vision for | SDGs, which have the same target year of 2030, and under- | ||||
2020, and took into account our response to climate change, | took a full change of the Vision. In addition, we listened to the | ||||
global human rights, and other needs of stakeholders and | opinions of our officers and employees while also heeding | ||||
society. We also considered issues such as the rapid develop- | outside experts, and underwent an extensive process of | ||||
ment of IoT and digitalization for which materials industry | deliberations. | ||||
Identification of sustainability issues | |||||
STEP 1 | |||||
From April 2018, having summarized outlooks for conditions in 2030 by the OECD and other organizations and | |||||
international guidelines such as ICMM guidelines and GRI Standards, and having identified 89 sustainability issues, |
Society with Value creating-Co for Strategy
CSR Committee Chair: President
Deputy Chair: CSR Executive Officer, SMM | ||||
Members: Head of Mineral Resources Div. | ||||
Head of Non-Ferrous Metals Div. | ||||
Head of Battery Materials Div. | ||||
Board of | ||||
President | Head of Advanced Materials Div. | |||
Directors | ||||
Head of Technology Div. | ||||
Head of Engineering Div. | ||||
Heads of Head Office Div. | ||||
Secretary: General Manager, CSR Dept. | ||||
Members of the Secretariat: CSR Dept. | ||||
Note: Directors who are also members of the CSR Committee are the President, the General Manager of the Non-Ferrous Metals Division, the General Manager of the Corporate Planning Department, and the General Manager of the Personnel Dept.
Risk Management Working Group
(Reports to Safety & Environment Control Dept.)
Compliance Working Group
(Reports to Legal Dept.)
Quality Assurance Working Group
(Reports to Quality Assurance Dept.)
Efficient Resource Utilization Subcommittee
(Reports to Technology Div.)
Environmental Preservation Subcommittee
(Reports to Safety & Environment Control Dept.)
Corporate Citizenship Subcommittee
(Reports to General Affairs Dept.)
Human Resources Development Subcommittee
(Reports to Personnel Dept.)
Human Rights Subcommittee
(Reports to CSR Dept.)
Occupational Health & Safety Subcommittee
(Reports to Safety & Environment Control Dept.)
Communications Subcommittee
(Reports to Public Relations & Investor Relations Dept.)
we worked to connect these issues with closely related SDG targets. | ||
STEP 2 | Identification of material issues through evaluation of the materiality of sustainability issues | |
To identify material issues from the identified 89 issues, from October 2018 we began evaluations on two axes: | ||
evaluation by CSR subcommittees from social perspectives and evaluation by business divisions from business | ||
perspectives. | ||
As standpoints for evaluation, we set three points-(1) degree of impact on society, (2) risks that threaten to | ||
increase if not actively addressed, and (3) opportunities gained if actively addressed-and evaluated these on a | ||
five-step scale. | ||
We further held study sessions by a total of 21 young managerial track employees in general positions and 20 factory | ||
leaders in the Besshi District, and used their opinions as reference in examinations by the CSR subcommittees. | ||
STEP 3 | Examination of the vision and KPIs | |
From April 2019, we began examination of the vision and of specific KPIs in CSR subcommittees corresponding to | ||
the 11 material issues. In July 2019, based on the examination by the CSR subcommittees, we held deliberations | ||
by officers, and carried out final examinations through the CSR Committee (chaired by the president). | ||
STEP 4 | Formulation and release of Vision for 2030 | |
In December 2019, the CSR Committee convened to issue its approval of Vision for 2030 and its KPIs, which, | ||
following resolution by the Board of Directors, led to formulation and announcement of the vision in March 2020. |
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Strategy for Co-creating Value with Society
Vision for 2030, Material Issues, KPIs (Indicators and Goals)
1 Effective Use of Non-Ferrous Metal Resources
Vision for 2030: A company that generates resources through high technological capabilities
- A company that stably provides non-ferrous metals to society
- A company that contributes to society by effectively using impurities through collaborative, open technological development among industry, academia, and government
- A company that contributes to the construction and maintenance of recycling systems for non-ferrous metals
- A company that develops and supplies highly advanced materials that contribute to the resolution of social issues
KPI | Indicators | Goals | |
1. 1) Advance copper mine projects | • Strengthen production structure at JV mines to achieve and maintain copper production level of 300 kt/year | ||
from interests | |||
• Achieve steady copper production level by reinforcing exploration of surrounding and deep areas in JV | |||
mines, expanding mineral processing technology, and improving operations leveraging IoT and AI | |||
• Advance Phase 2 and later projects at the Quebrada Blanca Copper Mine | |||
2) Acquire new superior copper and gold | • Develop new mines for which we have operatorship | ||
resources |
- Improve productivity by introducing new • Promote remote operation and unmanned operation of heavy machinery and information infrastructure
technology | equipment inside and outside of the Hishikari Mine |
4) Advance nickel ore projects and improve | (1) Nickel production: 150 kt/year |
productivity | (2) Recovery rate compared to FY2018: +2% |
2. 1) Develop technology to separate, stabilize • Develop technology to stabilize and bleed off impurities: Develop and demonstrate the process and bleed off, and create value from impuri-
ties generated by smelting processes and mines
- Develop technology to create value from • Contribute to existing (e.g. marine resource development) and new development projects unused non-ferrous metal resources
- Recover non-ferrous metals from hard-to- • Participate in business and technology for recovery of lithium from salt-lake water in the presence of high
process resources | levels of impurities |
3. Demonstrate and commercialize automobile • Demonstrate, commercialize, and expand scale of recycling technology that recovers cobalt from automo-
secondary battery recycling technology | tive lithium-ion batteries |
Commercialization: 2022 |
4. 1) Leverage our strengths to create new prod- • Research, develop, and commercialize new advanced materials in the fields of energy, automobiles, and
ucts and new businesses that contribute to | information communications |
society |
- Hold raw materials in-house for favorable • Commercialize NiO for fuel cells following demonstration project and stable procurement
- Expand sales of low-cost battery cathode • Maintain top class global share in the expanding cathode materials market materials through favorable, stable procure-
ment of our own nickel raw materials
2 Climate Change
Vision for 2030: A company that actively undertakes climate change countermeasures, by reducing emissions and stably supplying products contributing to a low-carbon society, a future with zero greenhouse gases (GHGs)
KPI | Indicators | Goals |
Reduce GHG emissions | 1. Keep total GHG emissions below that of FY2013 and formulate a plan to reduce our emissions to zero in the |
second half of the century
2. Cut GHG emissions intensity by at least 26% compared to FY2013
3. Expand contribution of GHG reduction by products contributing to a low-carbon society: 600 kt-CO2 or more
3 Significant Environmental Accidents 4 Biodiversity
Vision for 2030: A company that values water resources and biodiversity, and protects the richness of the sea and land
KPI | Indicators | Goals | |
1. Zero significant environmental accidents | 1) Promote improvements through the use of risk management and environmental management systems | ||
2) | Reinforce and improve equipment and infrastructure to address increases in sources of natural hazard | ||
2. Reduce emissions of hazardous substances | 1) Optimize water use; reduce emissions of hazardous substances to the atmosphere and water | ||
(year-on-year) | 2) | Promote various environmental preservation and biodiversity preservation activities, such as regular | |
reforestation | |||
5 Employees' Occupational Health and Safety
Vision for 2030: A company where all employees work together with safety first the priority in a comfortable working environment as well as safe facilities and operations
6 Diverse Human Resources 7 Development and Participation of Human Resources
Vision for 2030: A company where all employees can take a vibrant and active part
1 A company that respects the humanity of each and every employee, and where employees feel pride, motivation, and joy in work
2 A company that provides each and every employee with opportunities to improve his/her capabilities, and grows together with employees
KPI | Indicators | Goals |
1. Promote working style reform and create | 1) Improve scores for "Management by managers and superiors,""Appeal of job," and "Work environment" in | |
workplaces that make use of digital technolo- | employee awareness survey | |
gy, enabling diverse human resources to play | 2) (1) Number of female managers: 50 (SMM employees) | |
vibrant and active roles | (2) Increase workplaces open to women and improve ratio of female employees (20% or higher at Japanese sites) | |
3) Expand number of managerial track employees of foreign nationality | ||
4) Percentage of employees with disabilities: 3% or higher | ||
5) Assign jobs and provide support matched to employees' life stages | ||
2. Support employees' mental and physical | 1) Halve the number of people found to require support in stress checks | |
health | 2) Percentage of employees with abnormal findings indicated in health checkups: 50% or lower |
3. Diversify opportunities to enhance the abili- 1) Utilize one-on-one meetings that bring out the motivation and potential of every employee and boost the
ties of employees according to employee | growth of subordinates through regular dialogues between superiors and subordinates |
needs and work needs | 2) Reconstruct the human resources development program (in-house education, external education, etc.) to |
provide opportunities to employees to enhance their abilities in line with their roles | |
3) Provide opportunities for self-development matched to each employee's life plans and needs (correspon- | |
dence courses, online training, etc.) | |
8 Engagement with Stakeholders
Vision for 2030: A company that is appreciated and understood to be the world leader in non-ferrous metals
KPI | Indicators | Goals |
1. Further penetrate our Group brand among | • Improve results of employee awareness survey (increase ratio of employees who feel pride in working at the | |
employees | Company) |
- Ensure quality and quantity in communication • Earn a high reputation for the integrated report from outside the Company (including hearings with share-
of information at the level of "world leader in holders and investors, and improvements in questionnaire and evaluation results) the non-ferrous metals industry" - Increase in recognition and understanding of • Improvement in findings of surveys by external bodies (degree of recognition and understanding, etc.) our goal of "world leader in the non-ferrous
metals industry"
9 Co-Existence and Mutual Prosperity with Local Communities
Vision for 2030: A company that contributes to regional development and earns trust as a member of the local community
KPI | Indicators | Goals |
Participate in local communities through dia- | Accurately identify local issues through dialogues with local communities, and execute the following measures | |
logue and collaboration |
1. Support the local community via employee • Implement employee participation programs (from 2023) participation
2. Hire and procure locally | • Continually implement and assess of performance |
- Support for nurturing of the next generation 1) Implement programs to nurture the next generation in collaboration with government, local bodies, NPOs, etc. (one or more times/year)
- Establish and award scholarships in Japan and maintain existing overseas scholarships (from 2023)
- Support for people with disabilities and the • Implement programs to support people with disabilities and the elderly in collaboration with government,
elderly | local bodies, NPOs, etc. (one or more times/year) |
5. Support during disasters | • Support regions affected by large-scale disasters |
10Rights of Indigenous Peoples
Vision for 2030: A company that understands and respects the traditions and culture of indigenous peoples
KPI | Indicators | Goals |
- Understand indigenous peoples and their tra- • Percentage of SMM Group sites implementing in-house education: 100% by the end of FY2023 ditions and culture
- Support initiatives that lead to respect for the 1) Provide scholarships for indigenous peoples (continue existing initiatives)
traditions and cultures of indigenous peoples | 2) Support indigenous people-related initiatives by NGOs, academic societies, etc.: one initiative or more each year |
11Human Rights in the Supply Chain
Vision for 2030: A company that undertakes responsible sourcing across the supply chain
KPI | Indicators | Goals |
Society with Value creating-Co for Strategy
KPI | Indicators | Goals |
1. Prevent occupational accidents | Serious accidents: zero (in Japan and overseas, including contractors) | |
All accidents: reduce year-on-year, with aim of eventually zero |
2. Prevent occurrence of occupational diseases Number of workplaces that present higher health risks: reduce year-on-year Occurrence of occupational diseases: zero
Promote responsible sourcing, particularly responsible mineral sourcing
- Responsible mineral sourcing
- Establish a responsible mineral sourcing management system in line with international standards by the end of FY2021
- Zero mines or smelters and refineries complicit in child labor or other infringements of human rights in the supply chain
- Responsible sourcing
- Business partners that have received and agreed with the SMM Group Responsible Sourcing Policy: 100% by the end of FY2030
- Establish a responsible sourcing management system in line with international standards by the end of FY2024
- Continue implementing due diligence (DD)
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Strategy for Co-creating Value with Society
1 Effective Use of Non-Ferrous Metal Resources
Efficient Resource Utilization Subcommittee: For details on our subcommittee framework, etc., see p. 64-65
Approach and Policy
KPIs (Indicators and Goals) | Results | Issues | FY2021 Action Plan |
We aim to contribute to realizing a sustainable society by using our production capabilities as a foundation for carrying out research and development that includes collaboration with external parties. We will also aim to enhance our technological capabilities related to product creation and advance various initiatives such as realizing a stable supply of non-ferrous metal resources, creating value from unused resources, and utilizing technologies for recovering and recycling hard-to-process resources.
Vision for 2030, KPIs, Results, and Action Plans
2.1) Develop technology to sepa- rate, stabilize and bleed off, and create value from impurities generated by smelting processes and mines
•Develop technology to stabilize and bleed off impurities: Develop and demonstrate the process
2) Develop technology to create value from unused non-ferrous metal resources
•In the final year of the JOGMEC research project, we carried out research into the efficient separation and concentration of arsenic minerals.
•Consider the optimum conditions for separating arsenic and carry out verification tests using pilot facilities.
•Explore the adaptability of arsenic separation technology and investigate its compatibility with various ores.
Vision for 2030: A company that generates resources through high technological capabilities
- A company that stably provides non-ferrous metals to society
- A company that contributes to society by effectively using impurities through collaborative, open technological development among industry, academia, and government
- A company that contributes to the construction and maintenance of recycling systems for non-ferrous metals
- A company that develops and supplies highly advanced materials that contribute to the resolution of social issues
•Contribute to existing (e.g. marine resource develop- ment) and new development projects
•Regarding deep sea-floor mineral resource development, we continued to participate in JOGMEC initiatives such as enhancing the functionality of equipment for excavating sea-floor massive sulfide deposits and the trial extraction of cobalt-rich crust.
•Enhance the functionality of excavation equipment, carry out trial extractions in the drilling business, and make various improvements in the mineral processing and smelting & refining businesses.
•Continue to participate in JOGMEC initiatives.
KPIs (Indicators and Goals)
1.1) Advance copper mine projects
Results | Issues |
FY2021 Action Plan
3) Recover non-ferrous metals from hard-to-process resources
•Strengthen production structure at JV mines to achieve and maintain copper production level of 300 kt/year from interests
•Achieve steady copper production level by reinforcing exploration of surrounding and deep areas in JV mines, expanding mineral processing technology, and improving operations leveraging IoT and AI
•Advance Phase 2 and later projects at the Quebrada Blanca Copper Mine
2) Acquire new superior copper and gold resources
•Develop new mines for which we have operatorship
3) Improve productivity by introducing new technology
•Promote remote operation and unmanned operation of heavy machinery and information infrastructure equipment inside and outside of the Hishikari Mine
4) Advance nickel ore projects and improve productivity
- Nickel production: 150 kt/year
(2) Recovery rate compared to FY2018: +2%
•We maintained operations at JV mines in North and South America despite limitations accompanying the COVID-19 pandemic response.
•Construction of Phase 2 of the Quebra- da Blanca Copper Mine was suspended in March 2020 due to the COVID-19 pandemic but restarted once safety measures were put in place.
•We are advancing considerations regarding the acquisition of projects that aim to begin operations in the future.
•We considered establishing information infrastructure both inside and outside mines as a platform for the automation and remote operation of heavy machinery.
•We carried out onsite trials to decide on specifications for Wi-Fi networks within mines.
(1) Steady progress was made on the Pomalaa Project despite the possibility of delays caused by the COVID-19 pandemic in areas such as the obtainment of permissions.
(2) Technological improvements for improving recovery rates at CBNC and THPAL were successful, and we achieved targets.
•Gather JV mine information.
•Implement COVID-19anti-infection measures.
•Identify and consider new interests.
- Establish Wi-Fi environments in the main tunnel of each mine.
•Install remote monitoring systems in heavy vehicles.
(1) Advance procedures and discussions that enable investment decisions to be made at an early stage.
(2) Continue to develop technologies to overcome the decline in ore grades.
•Continue to gather information through technical meetings and the management committees.
•Operate the project steadily under thorough COVID-19anti-infection measures.
•Continue ongoing appraisals aimed at acquiring new interests.
•Begin communications using Wi-Fi networks in some sections of mines.
•Test remote monitoring systems in heavy vehicles.
(1) Obtain required permissions and advance discussions with partners.
(2) Continue to develop technology that enhances leaching rates and improves processes.
•Participate in business and | •We continued development of a | •Verify and optimize the pro- | •Carry out trials and confirm the |
technology for recovery of | refining process for recovering lithi- | cess through trials using pilot | long-term reliability of the |
lithium from salt-lake water in | um from salt-lake water using an | facilities. | adsorbent. |
the presence of high levels of | inorganic adsorbent. | ||
impurities | |||
3.Demonstrate and commercialize | |||
automobile secondary battery | |||
recycling technology | |||
•Demonstrate, commercialize, and | •We continued verification testing | •Establish and verify a process | •Resolve outstanding issues using |
expand scale of recycling tech- | through trials using pilot facilities. | with a view to | pilot facilities and consider |
nology that recovers cobalt from | commercialization. | commercialization. | |
automotive lithium-ion batteries | |||
Commercialization: 2022 | |||
4.1) Leverage our strengths to cre- | |||
ate new products and new | |||
businesses that contribute to | |||
society | |||
•Research, develop, and commer- | •We proceeded with activities to cre- | •Continue to search for new | •Set new exploration themes and |
cialize new advanced materials in | ate new businesses and products at | research themes and steadily | advance R&D to the next stage. |
the fields of energy, automobiles, | both the Creation Conference and at | manage research progress. | •Continue joint development under |
and information communications | subcommittees for each theme. | ||
the Vision Co-Creation Partnership | |||
with Tohoku University. | |||
2) Hold raw materials in-house for | |||
favorable and stable | |||
procurement | |||
•Commercialize NiO for fuel cells | •We carried out verification testing of | •Reduce production costs | •Reduce man-hours required by |
following demonstration project | pilot equipment for the mass produc- | and analyze and resolve bar- | improving pilot facilities and confirm |
tion of NiO for fuel cells. | riers to increasing | the effects of long-term continuous | |
production. | operation. | ||
3) Expand sales of low-cost bat- | |||
tery cathode materials through | |||
favorable, stable procurement | |||
of our own nickel raw materials | |||
•Maintain top class global share in | •We were able to maintain a top class | •Respond to demand for | •Secure nickel resources, increase |
the expanding cathode materials | global share in the NCA for vehicles | increased production from | production and sales of NMC for |
market | market, despite the impact of the | customers and sell low-cost | vehicles, launch low-cost cathode |
COVID-19 pandemic. | cathode materials for | materials onto the market. | |
batteries. | |||
Society with Value creating-Co for Strategy
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Effective Use of Non-Ferrous Metal Resources
Initiatives
Strategy for Co-creating Value with Society
2 Climate Change
Environmental Preservation Subcommittee: For details on our subcommittee framework, etc., see p. 64-65.
Approach and Policy
Participation in Deep Sea-Floor Mineral Resource Development Projects
Japan has limited resources, so the resources found on the ocean floor surrounding the country present huge possibili- ties. SMM is participating alongside a number of other companies in marine resource development projects being advanced by the Japan Oil, Gas and Metals National Corporation (JOGMEC), a Japanese government Independent Administrative Institution. We took part in projects focused on enhancing equipment for excavating sea-floor massive sulfide deposits and developing mineral processing, smelting, and refining processes for cobalt-rich crust, and we are now working toward realizing commercialization in the future.
- These initiatives follow three steps: 1) Develop research ideas, 2) carry out research and development with a view to commercialization, and 3) realize social applications.
-
In FY2020, we achieved success with some initiatives for
developing research ideas. For example, in the melt synthesis of zinc antimonide (Zn4Sb3), one of the thermoelectric con- version materials for the realization of energy harvesting (a technology for generating electricity from the energy around us), cracks interfere with the performance of the material, but we have found how cracks form and a method for eliminat- ing the cracks, enabling high thermoelectric conversion performance. - Both parties will continue to work on initiatives that lever- age Tohoku University's strength in materials science, wide-ranging knowledge, and innovation together with SMM's strengths derived from the three-business collabora- tion model and metal materials research and development capabilities.
* For more information on the Vision Co-Creation Partnership, see the Company's |
website. |
As a group of companies that produces a significant amount of greenhouse gas (GHG) emissions, we are committed to contributing to mitigating climate change by reducing global GHG emissions. We will do this by reducing GHG emission volumes and intensity through operational improvements and technological innovation, as well as expanding our business through the development of products that contribute to a low-carbon society, such as battery materials and functional inks (near-infrared absorbing materials).
Operation of Environmental Management Systems
The president, in whom ultimate accountability resides, sets annual SMM Group Environmental Targets comprising policies, targets, and measures by taking into consideration environmental risks and opportunities for contribution. Acting on these targets, each business division (including each business site and contractor) establishes and operates under environmental management systems based on the ISO 14001 standard. We have acquired certification for environmental management systems at Head Office, branch offices, and all Group manufacturing sites.
Vision for 2030, KPIs, Results, and Action Plans
Vision for 2030: A company that actively undertakes climate change countermeasures, by reducing emissions and stably supplying products contributing to a low-carbon society, a future with zero greenhouse gases (GHGs)
Sea-floor massive sulfide deposits Photo credit: JOGMEC
KPIs (Indicators and Goals) Reduce GHG emissions
Results
Issues
FY2021 Action Plan
Strategy
Recovering Lithium from Salt-lake Water
Demand for lithium is anticipated to grow due to its use in lithium-ion secondary batteries for vehicles and other appli- cations, so we are developing technology for recovering lithium from salt-lake water.
- At present, this technology is still under development, but it will enable the efficient recovery of lithium from salt-lake water containing large amounts of impurities using a unique adsorbent that can selectively recover lithium.
- Compared to current lithium recovery processes, such as solar evaporation, we think this technology will be able to hugely shorten manufacturing lead times and offer superiori- ty in terms of both technology and cost.
Collaborating with Shiga University to Cultivate Data Scientists
SMM and Shiga University are fully engaged in collaborative research into education related to the data analysis of manufacturing processes. This research is aimed at developing practical data analysis learning materials for students who are studying data science. In this groundbreaking endeavor, SMM will offer the university with an opportunity to engage in the experimental creation of analysis data for processes that are akin to those of an actual manufacturing site. The university will then create their own mock manufacturing process data and offer it as genuine learning materials to students. This will mean students not only receive fundamental education on statistical analysis, but also applied education aimed at practical manufacturing. Through this industry-academic collaborative initiative, we are aiming to cultivate data scientists who are well-versed in the manufacturing industry.
1.Keep total GHG emissions below that of FY2013 and formulate a plan to reduce our emissions to zero in the second half of the century
2.Cut GHG emissions intensity by at least 26% compared to FY2013
3.Expand contribution of GHG reduction by products contributing to a low-carbon society:
600 kt-CO2 or more
1. Carry out investments that reduce GHG emissions.
•We started binary power generation at the Hishikari Mine, and solar power generation and storage at the Ome District Division and other sites.
•We launched an internal carbon pricing system (ICP).
2. Advance a TCFD response.
•We conducted climate change scenario analysis.
1. Reduce GHG emissions intensity through operational improvements.
•GHG emissions intensity for FY2020 was about 4% lower than FY2013 levels.
2. Advance the use of low-carbon energy.
•We considered using low-carbon energy.
1. Look into and evaluate methods of calculating contribution to reducing GHG emissions.
•We formulated a process for calculating reduction contributions from battery materials, etc.
1. Carry out investments that reduce GHG emissions.
2. Gather and consider information on reducing GHG emissions.
3. Further develop our response to climate change risks and opportunities.
1. Continue to reduce GHG emissions intensity through further operational improvements.
2. Shift to low-carbon energy.
1. Define "products contribut- ing to a low-carbon society."
2. Look into and evaluate methods of calculating contribution to reducing GHG emissions.
1. Carry out investments that reduce GHG emissions.
•Verify and improve operation of the internal carbon pricing system.
•Follow up on investments.
2. Gather and consider information on reducing GHG emissions.
•Investigate technologies in areas such as hydrogen and carbon recycling.
3. Advance a TCFD response.
•Review and refine climate change scenario analysis.
1. Reduce GHG emissions intensity through operational improvements.
•Strengthen management of operations and check the effects.
2. Advance the use of low-carbon energy.
•Consider introducing low-carbon energy.
1. Consider a certification system and standards for products contributing to a low-carbon society.
2. Look into and evaluate methods of calculating contribution to reducing GHG emissions.
Society with Value creating-Co for
Salar de Atacama in Chile, which is rich in lithium
Initiatives Based on the Vision Co-Creation Partnership with Tohoku University
Since FY2020, we have continued to engage in initiatives based on a Vision Co-Creation Partnership* with Tohoku University aimed at 2050.
SMM employees together with Shiga University students
2. Increase production of products contributing to a low-carbon society and develop new products.
•We continued to enhance production capacity of products contributing to a low-carbon society (battery materials, functional inks, etc.).
•We continued joint development, including of new materials.
- Initiatives based on the Vision Co-Cre- ation Partnership with Tohoku Univer- sity (see p. 70) among others.
3. Increase production of products contributing to a low-carbon society and develop new products.
3. Increase production of products contributing to a low-carbon society and develop new products.
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2 Climate Change
TCFD Initiatives
In February 2020, we became a supporter of the Task Force on | climate change is to become "a company that actively under- |
Climate-related Financial Disclosures (TCFD). Then in March 2020, | takes climate change countermeasures, by reducing emissions |
we formulated and released our Vision for 2030 which posi- | and stably supplying products contributing to a low-carbon |
tioned climate change as a material issue. Our vision regarding | society, a future with zero greenhouse gases." We have made a |
- Climate Change Scenario Analysis Results
We considered two scenarios for 2050
1.5˚C scenario | A scenario in which ongoing efforts are made to keep the rise in average temperatures to within 1.5˚C. Information sources | |
included the IEA's1 WEO2 2019 Sustainable Development Scenario3 and ETP4 Beyond 2D Scenario, and the IPCC's5 special | ||
report Global Warming of 1.5˚C. | ||
4˚C scenario | A scenario in which no countermeasures are taken, and temperatures are allowed to continue rising. Information sources | |
included the IEA's WEO 2018 New Policies Scenario and the IPCC's RCP6 8.5 Scenario. |
- IEA: International Energy Agency. A global body focused on energy.
- WEO: World Energy Outlook. A report issued by the IEA covering topics such as energy demand and the outlook concerning technological development.
- Sustainable Development Scenario: A scenario that analyzes pathways for fully achieving the targets of the Paris Agreement.
- ETP: Energy Technology Perspectives. A report issued by the IEA.
- IPCC: Intergovernmental Panel on Climate Change.
- RCP: Representative Concentration Pathway.
commitment to strengthening efforts to achieve this vision and to enhance disclosure of relevant information.
- The Group's climate change response is considered by the CSR Committee (chaired by the president) and the Environ- mental Preservation Subcommittee (chaired by the General Manager of the Safety & Environment Control Department and comprising members from business and corporate divi- sions) under it. These considerations are reported to and dis- cussed by the Board of Directors and then specific measures are developed at each division.
- The TCFD recommendations advise that the disclosure of climate change-related risks and opportunities should be organized according to four core elements of corporate man- agement and operations (governance, strategy, risk manage- ment, and metrics & targets). Efforts at SMM are being led by
members of the Environmental Preservation Subcommittee's Climate Change Taskforce, who have solicited insight from experts in the field and incorporated it into climate change scenario analysis.
- Analysis involved 1) identifying key drivers, 2) establishing scenarios for temperature rises of 1.5˚C and 4˚C, 3) consider- ing impact on business, 4) identifying and evaluating risks and opportunities, and then 5) considering ways to approach these (such as Vision for 2030).
- We have shared information gained from the results of this analysis within the Group through means such as briefing sessions for the CSR Committee and relevant officers.
- Going forward, we will actively disclose information about climate change-related risks and opportunities.
See the TCFD Content Index on p. 2 of the supplementary ESG Data Book 2021
Scenario | Category | Drivers | Anticipated situation (2050) | Impact on business | Risk and opportunity (medium- to long-term) | SMM Group approach: Initiatives for realizing Vision 2030 | ||||||
Large | ||||||||||||
Increased tax burden, etc. | Risk | • Climate Change: Reduce GHG emissions | See p.71-74 | |||||||||
Climate | Carbon pricing (carbon | • Overall monetary amounts have risen | • Climate Change: Reduce GHG emissions | |||||||||
change policy | taxes, emissions trading, | (depending on nation or region) | Increases in R&D costs and investment in low-carbon facilities | Risk | See p.71-74 | |||||||
etc.) | • Effective Use of Non-Ferrous Metal Resources: Improve productivity by introducing new technology, Advance nickel ore projects | |||||||||||
and equipment | Short- to long-term, large | |||||||||||
and improve productivity | ||||||||||||
See p68-70 |
for Strategy
• Fuel consumption regulations have been | |||
Climate | Tightening of vehicle reg- | tightened and restrictions on movement | |
introduced | |||
ulations, policy to pro- | |||
change policy | • Policy is supportive of EVs and LEVs | ||
mote LEVs7 | |||
• Internal combustion-based vehicles | |||
have been replaced by LEVs | |||
Society and | Progress of digital trans- | • Self-driving vehicles, MaaS8, and car-shar- | |
formation related to vehi- | ing are common | ||
infrastructure | |||
cles, changes in values | • Fewer households own cars | ||
Technology | Development of hydro- | • Fuel cell vehicles (FCV) are common | |
1.5˚C | gen technology, fuel cells | • EVs and plug-in hybrid EVs (PHEV) are common | |
• Increase in sales due to growing demand for batteries and nick- | |||||||
el accompanying the spread of EVs | • Climate Change: Reduce GHG emissions | ||||||
See p.71-74 | |||||||
• Increase in sales of nickel oxide powder and lithium batteries | • Effective Use of Non-Ferrous Metal Resources: Advance nickel ore projects and improve productivity, Develop technology to cre- | ||||||
accompanying the development of a hydrogen society and the | Opportunity | Large | ate value from unused non-ferrous metal resources, Leverage our strengths to create new products and new businesses that | ||||
spread of FCVs | contribute to society, Hold raw materials in-house for favorable and stable procurement, Expand sales of low-cost battery cath- | ||||||
• Increase in sales of other products contributing to a low-carbon | ode materials through favorable, stable procurement of our own nickel raw materials | ||||||
See p.68-70 | |||||||
society |
Society with Value creating-Co
Climate | • Electricity occupies a higher proportion | • Increase in demand for copper accompanying the strengthen- | • Effective Use of Non-Ferrous Metal Resources: Advance copper mine projects, Acquire new superior copper and gold resources | ||||||||||||||||||||||
Shift to electrical energy | ing of electrical grids (although there is competition from alu- | Opportunity | Large | ||||||||||||||||||||||
change policy | of final energy consumption | See p.68-70 | |||||||||||||||||||||||
minum, etc.) | |||||||||||||||||||||||||
• Rise in the proportion of nickel used in batteries and increased | |||||||||||||||||||||||||
sales of nickel accompanying efforts to move away from cobalt | |||||||||||||||||||||||||
Opportunity | Medium | • Climate Change: Reduce GHG emissions | |||||||||||||||||||||||
• Solid state batteries that leverage SMM technology as | See p.71-74 | ||||||||||||||||||||||||
Technological shift in | • Effective Use of Non-Ferrous Metal Resources: Advance nickel ore projects and improve productivity, Develop technology to cre- | ||||||||||||||||||||||||
Technology | • There has been a shift in the market | next-generation batteries | |||||||||||||||||||||||
automobile storage | ate value from unused non-ferrous metal resources, Leverage our strengths to create new products and new businesses that | ||||||||||||||||||||||||
share of automobile storage batteries | • Spread of iron and manganese-based batteries accompanying | ||||||||||||||||||||||||
batteries | contribute to society, Hold raw materials in-house for favorable and stable procurement, Expand sales of low-cost battery cath- | ||||||||||||||||||||||||
efforts to move away from cobalt | |||||||||||||||||||||||||
ode materials through favorable, stable procurement of our own nickel raw materials | |||||||||||||||||||||||||
• Spread of new batteries that do not leverage SMM technology | Risk | Medium | See p.68-70 | ||||||||||||||||||||||
as next-generation batteries | |||||||||||||||||||||||||
• Limits on raw materials sourcing, increase in materials and man- | • Effective Use of Non-Ferrous Metal Resources: Advance copper mine projects, Acquire new superior copper and gold resources, | ||||||||||||||||||||||||
Interest in matters such | • There is greater awareness regarding | ufacturing costs, greater advantages due to owning our own | |||||||||||||||||||||||
Advance nickel ore projects and improve productivity, Hold raw materials in-house for favorable and stable procurement, | |||||||||||||||||||||||||
as responsible sourcing, | sustainability | mines | |||||||||||||||||||||||
Society and | Opportunity | Medium | Demonstrate and commercialize automobile secondary battery recycling technology | ||||||||||||||||||||||
environmental footprint, | • ESG investment is mainstream | • Expansion of the automobile secondary battery recycling | See p.68-70 | ||||||||||||||||||||||
infrastructure | • Human Rights in the Supply Chain: Promote responsible sourcing, particularly responsible mineral sourcing | ||||||||||||||||||||||||
and the social impact of | • There are more possible applications for | business | Risk | Medium to large | See p.92-93 | ||||||||||||||||||||
• Rights of Indigenous Peoples: Understand indigenous peoples and their traditions and culture, Support initiatives that lead to | |||||||||||||||||||||||||
businesses | alternative materials and recycled metals | • Impact of ESG investment on financing | |||||||||||||||||||||||
respect for the traditions and cultures of indigenous peoples | |||||||||||||||||||||||||
• Reputational risk if SMM's efforts are evaluated as insufficient | See p.91 | ||||||||||||||||||||||||
Rises in average tempera- | • Sea levels have risen | Decline in port functionality, greater risk of storm surges, possi- | |||||||||||||||||||||||
ture, sea surface tem- | • Storm surges are more frequent | bility of facility-based countermeasures needing to be taken at | Risk | Large | • Significant Environmental Accidents and Biodiversity: Zero significant environmental accidents | See p.75-79 | |||||||||||||||||||
perature, and sea levels | some coastal business sites | ||||||||||||||||||||||||
Increase in risk of flooding or water shortages at business sites in | |||||||||||||||||||||||||
4˚C | Temperatures | Increase in abnormal cli- | • Heavy rains and typhoons are more | certain regions, possibility of facility-based countermeasures | Risk | Large | • Significant Environmental Accidents and Biodiversity: Zero significant environmental accidents | See p.75-79 | |||||||||||||||||
and rainfall | needing to be taken | ||||||||||||||||||||||||
mate events, such as heat | frequent | ||||||||||||||||||||||||
Decline in operations at key suppliers, decline in plant opera- | • Significant Environmental Accidents and Biodiversity: Zero significant environmental accidents, Reduce emissions of hazardous | ||||||||||||||||||||||||
waves, flooding, and | • Increased risk of flooding and water | Risk | Large | ||||||||||||||||||||||
tions due to interruptions to procurement and shipping routes | substances | ||||||||||||||||||||||||
water shortages | shortages depending on region | See p.75-79 | |||||||||||||||||||||||
Possibility of facility-based countermeasures needing to be | |||||||||||||||||||||||||
taken due to the increased risk of damage to tailing dams | Risk | Large | • Significant Environmental Accidents: Zero significant environmental accidents | See p.75-79 | |||||||||||||||||||||
7 An abbreviation for LEVs:Low-Emission Vehicles | |||||||||||||||||||||||||
8 An abbreviation for MaaS:Mobility as a Service |
72 | SUMITOMO METAL MINING CO., LTD. Integrated Report 2021 | SUMITOMO METAL MINING CO., LTD. Integrated Report 2021 | 73 |
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Sumitomo Metal Mining Co. Ltd. published this content on 10 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2021 08:49:06 UTC.