Mitsubishi Materials : Supplementary Data Book 2021

Metals Company Supplementary Data Book

2021

For People, Society and the Earth

Introduction

The Mitsubishi Materials Group publishes its ESG Report (Archive Edition) to provide stakeholders with information regarding its perspective on and activities in the area of CSR.

The Metals Company, one of the in-house operating companies of Mitsubishi Materials, is a member of the ICMM†1 (related article: p. 4), which has as one of its objectives promoting sustainable development in the mining and metals industry. To ensure accountability for our mining and metal sector operations, we aim to make appropriate disclosure and strive for transparency in the information we provide. As part of our effort to meet this objective, we publish this Supplementary Data Book to provide detailed information on the Metals Company's CSR activities to supplement Mitsubishi Materials' ESG Report 2021 (Archive Edition).

Please also refer to the Mitsubishi Materials' ESG Report 2021 (Archive Edition), which also includes information regarding the Metals Company's CSR activities.

† 1 ICMM: The International Council on Mining and Metals is an organization formed by the world's leading mining and metals companies and has a clear commitment to leading sustainable development in the mining and metals sector.

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Table of Contents

Period Covered by This Report

Fiscal year 2021 (Mitsubishi Materials Corporation FiscalYear: April 2020 to March 2021)

Reporting Boundary

Mitsubishi Materials and its four affiliated smelting companies (Hosokura Metal Mining Co., Ltd., Onahama Smelting and Refining Co., Ltd., Materials Eco-Refining Co., Ltd. [MERC] and Indonesia P.T. Smelting [P.T. Smelting]) as well as MM Metal Recycling B.V (MMMR)

Release Date

September 2021

Referred Guideline

Global Reporting Initiative (GRI) Standard 2016

Operations of the Metals Company and affiliated smelting companies

	The Metals Company and CSR	P3
	Environmental Report
	Environmental Preservation and	P6
	Environmental Technologies
	Social Report
	Training and Harnessing a Diverse Range	P10
	of Human Resources
	Occupational Safety and Health	P11
	Responsibility in the Value Chain	P12

This Data Book, along with the information covered in the Mitsubishi Materials ESG Report 2021 (Archive Edition), has been independently assured by KPMG AZSA Sustainability Co., Ltd., with all figures subject to external independent assurance marked with a star "★". For more details regarding external independent assurance, please refer to p. 167 in Mitsubishi Materials' ESG Report 2021 (Archive Edition).

Domestic Offices	Overseas Offices
① Akita Refinery (Akita Pref.)	⑨ P.T. Smelting Jakarta Offices
② Materials Eco-Refining Co., Ltd,	(Indonesia)
(Akita Pref.)	⑩ P.T. Smelting Gresik Smelter and
③ Hosokura Metal Mining Co., Ltd,	Refinery (Indonesia)
(Miyagi Pref.)	⑪ MMMR (The Netherlands)
④ Onahama Smelting and Refining
Co., Ltd. (Fukushima Pref.)
⑤ Materials Eco-Refining Co., Ltd,
(Fukushima Pref.)
⑥ Ikuno Plant (Hyogo Pref.)
⑦ Materials Eco-Refining Co., Ltd,
(Hyogo Pref.)
⑧ Naoshima Smelter & Refinery
(Kagawa Prefecture)

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The Metals Company and CSR

Material Issues

Mitsubishi Materials recognizes that the sustainability of society as a whole has a profound impact on the future of corporate activities, and has identified issues in its management that carry a high level of importance. For the details and action associated with these issues, please refer to the ESG Report 2021 (Archive Edition).

Mitsubishi Materials Group's Materiality

1. Stable supply of product/material
2. Creation of a recycling-oriented society
3. Dealing with climate change
4. Environmental protection technologies
5. Workplace safety and hygiene
6. Governance
7. Development of diverse talent
8. Responsibility in the value chain
9. Stakeholder communication
10. Digital transformation

The Metals Company's Business Characteristics and Material Issues

Securing a stable supply of raw materials is critical for our business operations. At the same time, we recognize a need to make procurement and investment decisions in an environmentally and socially responsible manner. We also consider it essential to obtain materials not only through purchases of ore from mines but also to obtain copper and other precious and rare metals from recycled materials, in order to preserve natural resources. The Metals Company executed action plans in FY2021 in the following areas.

Metals Company: FY2021 Results and Future Tasks

1. Creation of a recycling-oriented society
   [Target] Stable processing of E-Scrap (Metals

business) [FY2021 Results]

• Optimize the smelting business in response to the expansion of E-Scrap processing

[Future Tasks]

1. • Optimization of material flow
2. Responsibility throughout the value chain [Target] Actions for raw material procurement for copper products
   [FY2021 Results]
3. • Development and implementation of the Responsible Minerals Control Policy

[Future Tasks]

• Implementation of the Responsible Minerals Control Policy

• Periodic renewals of third-party certification for gold, silver (under LBMA) and tin (under RMI)

*1 LBMA: The London Bullion Market Association, which manages quality and other features of precious metal ingots traded in precious metals markets

*2 Responsible Minerals Initiative

In this Data Book, we provide information about the following material issues, which we consider especially important to the Metals Company.

	Materiality		Page
(4)	Environmental protection technologies
	The environmental impact of our operations		6
	and steps to reduce our impact.
(7)	Developing diverse talent
	Global human resources management in the		10
	Metals Company.
(5)	Workplace safety and hygiene
	Actions to create a safe and healthy working		11
	environment taking into account the nature
	of our operations.
(8)	Responsibility throughout the value chain
	Environmental and social actions in copper		12
	ore procurement.

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As an ICMM Member

Supporting the Basic Principles of the ICMM

The International Council on Mining and Metals (ICMM), of which Mitsubishi Materials Corporation (MMC) is a member, was established in 2001 to play a central role among major worldwide resource producers and bring about sustainable development in the mining and metals industry. Working in coordination with a range of international organizations including the United Nations, World Bank, OECD, ILO and various NGOs, ICMM is a group at the forefront of industry- wide CSR activities, tackling issues including local communities, economics and the environment in relation to the global mining and metals industry, holding discussions and developing guidelines to resolve issues including safety and human rights, and lobbying government organizations. The ICMM is comprised of 23 corporate members, primarily major resource producers. The Japan-based members are Mitsubishi Materials, JX Nippon Mining & Metals and Sumitomo Metal Mining, as well as the Japan Mining Industry Association. We joined the ICMM in 2002 and promote CSR initiatives within our operations. The ICMM advocates 10 Principles for Sustainable Development, to which member companies are required to commit. The spirit of the ICMM's 10 Principles are reflected in the Mitsubishi Materials Code of Conduct.

The ICMM 10 Principles for

Sustainable Development

Principle 1: Apply ethical business practices andsound systems of corporate governance and transparency to support sustainable development

Principle 2: Integrate sustainable development incorporate strategy and decision-makingprocesses

Principle 3: Respect human rights and the interests,cultures, customs and values of employees and communities affected by our activities

Principle 4: Implement effective risk-managementstrategies and systems based on sound science and which account for stakeholder perceptions of risks

Principle 5: Pursue continual improvement in healthand safety performance with the ultimate goal of zero harm

Principle 6: Pursue continual improvement inenvironmental performance, addressing issues such as water stewardship, energy use and climate change

Principle 7: Contribute to the conservation ofbiodiversity and integrated approaches

to land-use planning

Principle 8: Facilitate and support the knowledge-base and systems for responsible design, use, re-use,recycling and disposal of products containing metals and minerals

Principle 9: Pursue continual improvement in socialperformance and contribute to the social, economic and institutional development of host countries and communities

Principle 10: Proactively engage key stakeholders onsustainable development challenges and opportunities in an open and transparent manner, effectively report and independently verify progress and performance

Moreover, the ICMM defines the position statements for supplementing and embodying some of the ten essential principles.

ICMM Position Statements

1. Climate Change
2. Water Stewardship
3. Tailings Governance
4. Indigenous Peoples
5. Partnerships for Development
6. Mineral Revenues
7. Mercury Risk Management
8. Protected Areas

The Metals Company has for several years implemented measures supporting the ICMM position statements. For instance, we established a company-wide initiative in November 2008 regarding our greenhouse gas emissions (Statement 1) and have stepped up efforts to tackle global warming. Regarding Statement 7, copper concentrate, which is a raw material used in core copper smelting and refining business, contains mercury as an impurity. We implement proper mercury management in accordance with the Waste Management and Public Cleansing Act amended (and put into force on October 1, 2017) after the Minamata Convention on Mercury came into force in August 017. Although we are not directly involved in the day-to-day operations of mines, we monitor the environmental and social compliance of mines in which we invest (Statements 4, 5 and 8) by implementing our CSR Investment Standards, which we established in July 2009. Regarding Statement 3, information on the management of abandoned mines is listed on p. 64 and 68 in Mitsubishi Materials' ESG Report

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