Philosophy

Philosophy

As a member of the Sumitomo Metal Mining Group, Sumiko Resources Exploration & Development Company (SRED) has established the following management philosophy based on Sumitomo's Business Philosophy.

  1. We will strive to harmoniously coexist with the earth and society based on Sumitomo's Business Philosophy, and, through the implementation of healthy business activities, will contribute to society, fulfill our responsibilities to stakeholders, and be a more trusted company.
  2. We will recognize the dignity and value of people, based on respect, and will strive to be a cheerful and energetic company.

This management philosophy will clarify SRED objectives and how to achieve them.
A Code of Conduct for Directors and Employees has been established to help achieve our management philosophy.

Our management philosophy states firstly that we will strive to be a more trusted company, and it specifies the following method to achieve that.
  1. Work based on Sumitomo's Business Philosophy
  2. Harmoniously coexist with the earth and society
  3. Implement healthy company activities
  4. Contribute to society
  5. Fulfill responsibilities to stakeholders (customers, shareholders, employees, creditors, local residents, business partners, citizen groups, government, and other parties concerned)
Our second objective is to be a cheerful and energetic company, achieved by doing the following.
  1. Act based on a respect for people
  2. Recognize human dignity and value

Code of Conduct

All officers (including executive officers) and staff (including fixed-term and temporary employees) shall, in accordance with the corporate philosophy of the SMM Group, comply with the following Code of Conduct. Officers in particular shall, in reflection of their position and responsibilities, exercise strict self-discipline, set an example in carrying out the Code of Conduct, and educate employees to honor and strictly obey the Code of Conduct in full.

  1. Compliance: Abidance by Laws and Rules
    • We will comply with foreign and domestic laws and rules, and conform to social norms.
    • We will never under any circumstances commit an infraction of the law or act counter to social norms, even if doing so would seem to be in the company's interests.
  2. Respect for Individuals
    • We will accept diversity and respect the individuality and rights of people.
    • We will never violate human rights, engage in discriminatory conduct, or contribute to such conduct.
  3. Assurance of Health and Safety
    • We will give highest priority to ensuring the physical health and safety of all persons affected by our operations.
  4. Development of Human Resources
    • We will strive not only for personal self-improvement, but also to nurture successors through systematic training and by providing various opportunities in the course of work.
  5. Risk Management
    • We will strive to identify risks, prevent their occurrence, and if risks occur, minimize the effects.
  6. Adherence to a Progressive Stance
    • We will approach our jobs with a positive and progressive attitude suitable to the creation of technologies and systems in the vanguard of changing times.
  7. Respect for Teamwork, Promotion of Good Communication
    • We will place high value on teamwork, in the form of cooperation both with other organizations and with fellow workers.
    • We will strive to create a cheerful and broad-minded corporate atmosphere conducive to the smooth transfer of required information and the timely performance of reporting, liaison and consultation.
  8. In Harmony with Society and Local Communities
    • As members of society, we will participate in social contribution activities in accordance with our personal beliefs.
    • We will strive toward a harmonious and mutually beneficial relationship with local communities.
  9. Separation of Corporate Business and Personal Affairs
    • We will at all times conduct ourselves based on sound judgment, and make a clear distinction between corporate business and our personal affairs.
  10. Collection, Management and Usage of Information
    • We will collect information swiftly, properly and lawfully, manage it appropriately, and use it effectively.
    • We will utilize information acquired in conjunction with corporate business expressly for that purpose only, and will not leak such information to any third party.
  11. Handling of Intellectual Property
    • We will nurture and maintain conscious recognition of the importance of intellectual property as a vital asset of the Group, and strive toward the creation of such property.
    • We will strive to properly protect and effectively use all corporate intellectual properties; we will also respect intellectual properties of other parties.
  12. Assurance of Quality
    • We will continuously improve quality management systems and provide products and services that satisfy customers.
    • We will enhance technologies and seek to engage in manufacturing that takes into account customersf safety and their environment.
  13. Stance toward Performance of Sales and Purchasing
    • We will comply with competition laws and conduct sales and purchasing activities based on fair competition.
  14. Stance toward Entertainment and Gifts
    • We will entertain and present gifts to others, and accept entertainment and gifts, within the proper limits of both the law and social acceptability.
    • We will comply with laws against bribery and will maintain healthy and proper relationships with government and political organizations.
  15. Severance of Relationships with Socially Disruptive Forces
    • We will staunchly eliminate socially disruptive forces and have no relations whatsoever with them.
  16. Concern for the Global Environment
    • Taking into consideration climate change and biodiversity, we will act in a manner enabling us to contribute to the resolution and/or improvement of resource, energy and environmental problems of global scale.
  17. Attitude in the Performance of Global Business Activities
    • We will strive to interact with people in the countries or regions where we undertake business and engage in conduct that respects local culture and practices as well as globally accepted norms and their spirit.

Sumitomo Metal Mining Group Policy on Human Rights

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

  1. Our Group's approach to respect for human rights
    Our Group understands that all our business activities may directly or indirectly affect human rights.
    Our Group takes utmost care not to infringe on the human rights of all people, avoids causing or contributing to adverse human rights impacts through our business activities, and works towards correcting and remedying any such situation that may arise.
    Where stakeholders, in particular business partners such as suppliers, are involved in adverse human rights impacts, the Group encourages them not to infringe on the human rights and cooperates with efforts for correction and remedy.
    In actual efforts, we will particularly focus on the three areas of "Employees", "Local Residents and Indigenous Peoples" and "Supply Chain (including employees therein)".
  2. Commitments on fundamental human rights issues
    1. Respect for children's rights and prohibition of child labor
      We respect the fundamental human rights of children under 18 years of age and engage in relevant business activities and social contribution activities. We do not permit child labor, especially the worst forms of child labor, such as slave labor through forced recruitment in times of conflict, and labor that is harmful to the health and safety of children.
    2. Prohibition of forced labor.
      We do not recognize modern slavery in the form of forced labor, debt labor (work in situations where a person is forced to work for an employer to repay a debt) and human trafficking.
    3. Prohibition of discrimination
      Discrimination, harassment and bullying on the basis of race, religion, gender, age, sexual orientation, disability, nationality and other factors are not permitted in employment and work situations.
    4. Respect for basic labor rights
      We respect basic labor rights (such as freedom of association and workers' right to collective bargaining) and engage in constructive dialogue between labor and management.
    5. Working hours and wages
      We endeavor to properly manage working hours, holidays and leave in accordance with laws and regulations, including reducing excessive working hours, and we pay wages at or above the minimum wage stipulated by laws and regulations.
    6. Occupational health and safety
      We We actively address to ensure a safe and healthy working environment and give top priority to safety and health for life and limb.
  3. Scope of application
    This policy applies to all executives and employees of the SMM Group (Sumitomo Metal Mining Co., Ltd. and its subsidiaries).
    Our SMM Group also expects and encourages stakeholders directly linked to our operations, products or services, in particular business partners, to understand and support this policy.
  4. Respect for International Norms on Human Rights
    Our Group, in cooperation with its stakeholders, will address to respect human rights in accordance with the following international norms and standards.
    In addition, our Group will comply with all applicable laws and regulations in the regions where we operate.
    In the unlikely event of a conflict between these laws and regulations and international norms on human rights, we will seek ways to respect international norms while complying with the laws and regulations.
    • UN Guiding Principles on Business and Human Rights
    • International Bill of Human Rights ("Universal Declaration of Human Rights", "International Covenant on Civil and Political Rights", and "International Covenant on Economic, Social and Cultural Rights")
    • International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work
    • ILO Tripartite Declaration of Principles on Multinational Enterprises and Social Policy
    • United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP)
    • The 2030 Agenda for Sustainable Development (SDGs)
    • Convention on the Rights of the Child
    • OECD Due Diligence Guidance for Responsible Business Conduct
    • OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas
    • International Council on Mining and Metals (ICMM) Mining Principles
    • Voluntary Principles on Security and Human Rights
  5. Governance and Promotion Structure
    The Diversity Subcommittee and the Human Rights Subcommittee, which are subordinate organizations of the Sustainability Committee chaired by the President, shall report regularly on the status of compliance with this policy and the Group's efforts to respect human rights to the Sustainability Committee, which is overseen by the Board of Directors, and reflect this information in the Group's business policies and procedures.
  6. Human Rights Due Diligence
    In accordance with the OECD Due Diligence Guidance for Responsible Business Conduct and other guidelines, our Group will conduct the human rights due diligence in the following steps.
    In doing so, our Group will strive to utilize the human rights expertise and engage in meaningful consultation with stakeholders.
    1. Identify and assess adverse impacts associated with our Group's operations, either directly or indirectly.
    2. Integrate the results of the assessment into the company's processes, including allocating budgets to address any adverse impacts identified as a result of the assessment.
    3. Seek to cease, prevent and mitigate adverse impacts.
    4. Monitor and track the status of implementation and carry out assessments of the effectiveness of our Group's initiatives.
    5. Disclose information on the status of the implementation and the effectiveness.
  7. Grievance Mechanism
    Our Group will establish a grievance mechanism that is accessible to all stakeholders, including not only employees of our Group but also employees in the supply chain, local residents and indigenous peoples, and that aims to resolve grievances by consensus through dialogue.
  8. Dialogue and Consultation with Stakeholders
    Our Group will engage in dialogue and consultation with stakeholders, including human rights experts, labor unions, customers and business partners, to promote comprehensive measures based on expertise and a broad range of perspectives for the adaption and the revision of this policy and for our Group's efforts to respect human rights.
    In addition, we will raise awareness and provide training to all executives and employees of our Group to promote their understanding of this policy and their engagement in initiatives to respect human rights.
  9. Reporting and Information Disclosure
    Our Group will regularly disclose the progress of its initiatives based on this policy.

This policy was formulated with the assistance of human rights experts, discussed within the Sustainability Committee of Sumitomo Metal Mining Co., Ltd. and approved by the Board of Directors.

President and Representative Director Akira Nozaki
Amended on June 1, 2022

SMM Group Responsible Mineral Sourcing Policy

Pursuant to the Sumitomo Metal Mining Group Policy on Human Rights, we do not buy minerals that may be associated with human rights violations such as child labor or forced labor, environmental destruction, Illegal mining, or corruption, or minerals that may be used as a source of funding for armed insurgents or other such organizations.

We respect the guidance established by the Organization for Economic Co-operation and Development (OECD) regarding minerals sourcing, and we exercise appropriate influence over suppliers as we work for responsible mineral sourcing throughout the entire supply chain.

Sumitomo Metal Mining Group's Water Policy

  1. Context
    Sumitomo Metal Mining ("SMM") Vision for 2030 has been formulated as a milestone for the realization of our long-term vision of Becoming the World Leader in the Non-Ferrous Metals Industry. In our "Vision for 2030", we believe it is important to be a company that protects oceans and land with consideration for water resources and biodiversity. The SMM Group requires large amounts of water in its production processes, mainly in its mining and metals operations, and water is an indispensable resource for its business activities. At the same time, water is an essential shared resource for local communities and the surrounding ecosystem. To achieve our vision, we set goals to optimize water use and reduce emissions of hazardous substances to water.
    This Water Policy guides our commitment for sustainable use and management of water resources across all our operations.
  2. Scope
    This policy applies to the entirety of SMM's business (SMM and its subsidiaries), unless any aspect of the Policy is not permitted by local law or regulations. In addition, this policy applies to all executives and employees of the SMM Group.
  3. Governance & Promotion framework
    The Environmental Preservation subcommittee, a subcommittee of the Sustainability Committee chaired by the President, will report regularly to the Sustainability Committee, which is overseen by the Board of Directors, on the status of compliance with this policy and promote water-related initiatives.
  4. Water Policy Principles
    As an ICMM (International Council on Mining and Metals) member, we aligned this Policy with ICMM member's approach outlined in the ICMM position statement on water stewardship. SMM has adopted the following principles with respect to water issues and risk management.
    • SMM will align its business strategy with identified risk and opportunities.
    • SMM will monitor and report on our efforts and results.
    • SMM will engage with key stakeholders.
  5. Business Strategy & Operations
    Water is essential to our business. It is vital we drive responsible water use across our operations, minimize our environmental impact on water resources and invest in projects and technology for water management.
    • We will consider water impacts and integrate water management into our business strategy and operational decisions.
    • We will identify and proactively manage water related risk and opportunities including those associated with water quality, water scarcity.
    • We will support and implement water stewardship initiatives and projects that promote better water use, reduce freshwater use, have effective catchment management and contribute to improved water security and sanitation. We will ensure provision and access to clean and safe drinking water and sanitation facilities at all our sites.
    • We will develop and invest in technology and innovation for effective water management.
  6. Monitoring & Reporting
    We are committed to disclosing our water performance and progress towards our targets so that stakeholders can be informed and actively involved in our sustainability journey.
    • We will set and regularly review water management objectives and set context-based water targets.
    • We will proactively monitor our water performance and collect water consumption data.
    • We will publicly report on our water management performance, material risks and provide updates on progress against our targets using consistent industry metrics and recognized approaches.
  7. Engagement
    Access to water is critical to the communities in where we operate. While we recognize and continue to focus on the positive impacts that our management system can facilitate, the risks associated with broader social and economic water-related impacts in the region. We recognize the importance of working with our stakeholders to promote effective water governance and stewardship. We will support collective action to improve water policies, regulations and address shared water challenges in communities and value chains.
    • We will advocate for responsible water usage practices and increase water stewardship awareness with our key stakeholders, including employees, suppliers and customers.
    • We will educate all officers and employees of the Group on understanding this policy and water-related initiatives.
    • We will engage with communities and stakeholders who may be affected by a site's water use and wastewater discharge to address shared water management issues.
    • We will establish and maintain a grievance mechanism that is accessible to our stakeholders.
    • We will engage with governments and local authorities in the areas in where we operate on water-related public policy and regulation.
  8. Review
    This water policy will be reviewed periodically by the Chairman of the Environmental Protection Subcommittee and, if necessary, changes will be approved by the Board of Directors.

Akira Nozaki
President and Representative Director
June 1, 2023

Environmental Policy

Basic Philosophy

Sumiko Resources Exploration & Development Co., Ltd. (SRED) will, as part of its basic management philosophy, make active efforts to preserve the global environment.
Also, as a member of the Sumitomo Metal Mining Group, SRED will contribute to society by engaging in activities in accordance with Sumitomo Metal Mining's CSR policy.

Basic Policy

Considering that our main business activities include well drilling and the survey and development of resources, we are deeply involved in the global environment. We will make the most of the environmental technology and know-how that we have amassed through the years in order to leave the next generation with a desirable global environment in which to live. Additionally, as part of our effort to use resources effectively and reduce the burden on the environment, we will continuously and voluntarily execute the Environmental Policy below.

  1. We will constantly be aware of the impact that our business activities have on the environment. We will also try to continuously improve our environmental management system, improve our environmental performance, and prevent environmental pollution.
  2. We will comply with environmental laws, regulations, agreements, and other requirements.
  3. During our business activities, we will place priority on the items below from an environmental perspective.
    1. We will perform environmentally friendly surveys, development work, and construction, and will give careful consideration to the impact on the environment.
    2. To reduce waste, we will promote the 3 R's (reduce, reuse, and recycle) in our business activities.
    3. All members of the company will take active roles in energy conservation.
  4. To achieve the objectives of this Environmental Policy, we will set environmental objectives and targets, and engage in environmental protection with everyone participating.
  5. This Environmental Policy will be made known to all members of the company. It will also be made available to people outside the company and publicly disclosed upon request.

April 1, 2017
Sumiko Resources Exploration & Development Co., Ltd.

Compliance

(1)Sumiko Resources Exploration & Development Co., Ltd. Code of Conduct

The Sumiko Resources Exploration & Development Co., Ltd. (SRED) Code of Conduct establishes company standards for legal compliance and conduct of business as described below.

  1. Compliance: observation of laws and rules

    - We will observe domestic and foreign laws and rules, and use social common sense.
    - We will not violate laws and social common sense, even if doing so will apparently benefit the company.

  2. Marketing and purchasing activities

    - We will engage in marketing and purchasing activities under appropriate terms and conditions through free and fair transactions.
    SRED directors and employees will carry out business in strict compliance with this Code of Conduct.

(2) Business Ethics Code of Conduct

In order to carry out healthy business activities, SRED has established a "Business Ethics Code of Conduct" that particularly applies to business operations as described below.

All directors and employees involved in business activities must satisfactorily understand this Business Ethics Code of Conduct, be constantly aware of the major impact that their behavior has on society's trust in the company, and comply with related laws and regulations. Furthermore, they must strive to carry out business with a high sense of ethics according to the spirit of this Code.

  1. We will comply with the Antimonopoly Act and other laws and regulations, and engage in business activities based on fair and free competition.
  2. When carrying out business, we will not take actions that will arouse suspicion in others. We will not participate in meetings that will arouse suspicion.
  3. Sumiko Resources Exploration & Development Co., Ltd. We will always act with the SRED Code of Conduct in mind.
  4. When carrying out business with government agencies, we will comply with the "National Public Service Ethics Act" and related laws and regulations, and will always take restrained actions that do not violate social common sense.