Sumitomo Metal Mining : Presentation slides with transcript

I'm Okamoto of Technology Division, thank you for joining us today.

I will explain about Medium-Term Targets and roadmap to achieve Carbon Neutrality, officially announced on Dec. 26, 2023.

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Today, the four points as you see them will be explained.

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First, I will explain about Sustainability of SMM Group.

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Under our Business Spirit and Management Philosophy, the management principles, "Coexistence with the global environment and society" and "Respect for all individuals" take place and we have organized our 11 key sustainability issues by the areas of "Global Environment," "Society," and "Individual."

Climate change, which is the subject of today's presentation and is shown on the left side of the diagram, is one of the key sustainability issues.

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The Company's Sustainability Committee, chaired by the President, is the core of the Company's company-wide sustainability activities, and has five subordinate organizations under its umbrella, including the Carbon Neutrality Committee.

The Carbon Neutrality Committee was established in April 2022 for the purpose of clarifying policies for achieving carbon neutrality and strongly promoting activities through company- wide business activities.

The Board of Directors receives regular reports from the Sustainability Committee and functions to oversee its activities.

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Next, roadmap to achieve Carbon neutrality in 2050 will be explained.

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SMM has established a vision for 2030 for each material issues.

"Climate Change," one of the material issues for the vision for 2030, is working toward a goal "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)."

We have revised our KPI target to reduce GHG emissions by 38% or more from the base year of FY2015, in line with the roadmap to become carbon neutral by 2050, which was formulated in December last year.

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Since the 2030 climate change target established in March 2020, social conditions have changed dramatically, and the Paris Agreement on Climate Change target was raised from 2°C to 1.5°C at COP26.

As a result, a 45% reduction in GHG emissions by 2030 and a net-zero by 2050 have become common global goals, climate change measures are being accelerated and regulations are being tightened on companies.

These changes have affected the business environment of the SMM Group, and we have decided to review our roadmap formulation and 2030 targets.

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The total GHG emissions of the SMM Group were 2,823k tons in FY2022, with the smelting business accounting for 90% of the total emissions.

Although the smelting business has been promoting energy conservation and higher efficiency, the decline in the grade of raw ore and the increase in impurities require more energy to maintain the quantity and quality of products, and as a result, GHG emissions have continued to remain flat.

For these reasons, it is difficult to achieve the mid-term target I have just explained through conventional energy conservation efforts alone.

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A breakdown of GHG emissions in FY2022 shows that 30% of emissions come from electricity in Japan, 15% from fuel oil and coal, 38% from coal-fired power generation at a nickel smelting plant in the Philippines, and 15% from chemical reactions to neutralize acidic liquid waste from the smelting process.

To reduce GHG emissions, it is important to identify these sources and promote appropriate measures for each.

Later in the presentation of individual case studies, we will explain our measures for each source.

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