Interaction with Stakeholders

Interaction with Stakeholders

Basic Approach to Building Relationships with our Stakeholders and Key Means of Communication

In the interests of sustainable corporate management, we believe that communicating with our stakeholders is crucial if we are to incorporate their expectations and requirements into our business strategies and activities. While creating more opportunities for communication, our aim is to reflect stakeholders’ perspectives in our management practices to a greater extent than ever before.

Basic Approach to Building Relationships with Our Stakeholders and Key Means of Communication

Basic approach to building relationships with our stakeholders and key means of communication

Relationships between stakeholders and businesses

Stakeholders Relationship with businesses
Shareholders & Investors
Disclosing information as and when necessary, and engaging in dialogue regarding management
We aim to sustainably increase corporate value through mutual communication with shareholders and investors while fulfilling management transparency and accountability.
Engaging in business activities with an emphasis on improving customer satisfaction
We provide high-quality products and services that meet a wide range of customer needs and requirements.
Improving the value of individual talents
We aim to create a workplace where members of diverse backgrounds can coexist and be accepted by each other, maximize their respective capabilities while making the most of each other, and feel safe and secure as they work, experiencing their own growth and self-realization.
Local Communities
Building trusting relationships & contributing to development
We actively engage in interaction and dialogue with local communities and strive to achieve appropriate mutual recognition and understanding with regards to our business activities.
Business Partners
Engaging in fair, impartial trade & collaboration
We engage in fair and proper transactions with all business partners and work with our business partners to implement responsible procurement of raw materials and minerals.
Industry/Economic Organizations
Collaboration to solve social issues
We engage in exchanges of opinions and collaborations with the Japan Mining Industry Association, Japan Geothermal Association, and KEIDANREN (Japan Business Federation), etc., in order to solve social issues
Non-profit Organizations
(Educational/Research Institutions, NGOs & NPOs)
Engaging in dialogue and cooperation in response to public demand
We contribute to education support and human resource development through cooperation with educational and research institutions, NGOs and NPOs.
Maintaining close, sound relations and assisting with policies
In addition to complying with related laws and regulations established by government agencies and local governments, we engage in businesses that contribute to the regional development in a collaborative manner.
Environment & Future Generations
Engaging in wide-ranging dialogue & collaboration in order to protect the environment
In order to contribute to solving environmental problems, we build networks with various stakeholders, exchange opinions, and promote collaboration.


Responding to the Expectations and Needs of Stakeholders

We respond to issues highlighted and suggestions made by our stakeholders so that we can improve the standard of our sustainable management. We have launched a number of initiatives in response to key comments and requests, including the following. For information on methods of communication with stakeholders when ascertaining details, please see “Interaction with Stakeholders”.

Key comments and their source Group response
Continuing to expand and improve resource recycling measures
  • "Contributing to the creation of a recycling-oriented society" is stated Our Commitment.
  • Optimization of material flow across the overall Group
  • Business expansion, research and development aimed at improving urban resource recycling
Responding to the risks and opportunities associated with climate change
  • Driving the reduction of GHG emissions to achieve carbon neutrality by Fiscal 2046
  • Developing materials, products and technologies that contribute to decarbonization
  • Developing and promoting the use of renewable energies (geothermal energy, geothermal heat, hydroelectric energy, solar energy, etc.)
  • Pushing forward with demonstration testing and technology development related to CO2 capture and utilization
  • Performing scenario analyses based on the TCFD recommendations
  • Calculation of our carbon footprint
Managing closed mines
  • Continuing management work, such as mine drainage treatment and maintenance of tailings dams, at closed mines (non-ferrous metal mines) owned by the Group in Japan (including the preservation and effects of some mines as cultural assets)
  • Systematically implementing facility upgrades and construction work for environmental measures (construction work to prevent mine pollution and hazards to prepare for increasingly severe natural disasters, tailings dam reinforcement work in preparation for a major earthquake, measures to deal with the source of pit and waste water, upgrading of obsolete equipment, and so on)
  • Digitalization of management tasks for closed mines
  • Cultivating the development of closed mine workers
  • Developing technologies related to the management of closed mines
Preserving biodiversity (company-owned forests, areas around mines)
  • Obtaining the forest certification by SGEC for company-owned forests and promoting sustainable forest management
  • Confirming that biodiversity has been factored into mines in which we invest, and carrying out preservation activities at business sites located adjacent to national parks
Respecting human rights throughout the supply chain
  • Rolling out multi-layered initiatives with the goal of ensuring the effectiveness of the Mitsubishi Materials Group's Human Rights Policy, Procurement Policy, etc. in the supply chain including the Group, such as awareness-raising activities, due diligence, and ensuring that corrective measures are taken
  • Operating CSR investment and loan standards and CSR Procurement Standards in the Metals business, and engaging in dialogue with local communities where the Company has invested in mines where its interests are over and above a certain scale
  • Maintaining responsible mineral procurement certifications (gold, silver, tin, and tungsten)
Quality control
  • Continued implementation of preventive measures regarding quality issues
  • Days to reflect on quality and prevent quality issues from being forgotten
  • Developing mechanisms that avoid producing non-standard goods through "Proactive quality management"
Creating safe, healthful working environments
  • Activities to raise awareness of SCQDE (prioritizing safety and health in every action)
  • Continuing the Zero Occupational Accident Project
  • Thorough efforts to make equipment safe (engineering measures) through risk assessments (RA)
  • Strengthening health and safety education
  • Raising employees’ awareness of health
  • Strengthening safety and health systems
  • Ensuring the safety of employees of operating support providers (partner companies)
  • Preventing fire, explosion, and other accidents
Talent development
  • Activating employee communication
  • Development and continual improvement of an education and training system
  • Developing next-generation business leaders
Promoting greater roles for diverse talents
  • Promoting Diversity and Inclusion
  • Practicing health and productivity management
Strengthening information security
  • Improving and expanding the information infrastructure
  • Expanding effective measures to defend against attacks aimed at vulnerabilities that are already known by attackers
  • Reducing the risks of new threats, including targeted attacks
  • Monitoring vulnerability and threats by the security operations center (SOC), and promptly handling incidents by establishing a computer security incident response team (CSIRT)
The evolution of corporate governance
  • Group governance enhancement (communication, compliance framework and awareness, allocation of resources)
  • Building a new risk management system that enhances effectiveness and certainty
  • Responses based on the corporate governance code


Distribution of Economic Value to Stakeholders

Striving to Adequately Distribute Economic Value

As we continue to earn operating revenue and generate economic value added thanks to the involvement of our diverse range of stakeholders, we believe that it is important to fulfill our social responsibilities and adequately distribute that added value among our stakeholders.

Economic Value Added in Fiscal 2023

Revenue for Mitsubishi Materials in fiscal 2023 came to 1229.7 billion yen. That included proceeds from the sale of products and services, dividends and other forms of non-operating income, and extraordinary income. Operating costs, which consist primarily of payments to suppliers, totaled 1160.8 billion yen.
After subtracting operating costs from our total revenue, the amount of added value generated through our business activities came to 68.9 billion yen.

Distribution of Added Value

Personnel costs, which include statutory welfare expenses and retirement benefit costs contributions and represent the portion of revenue distributed to our employees, came to 50 billion yen.
In the meantime, we distributed a total of 3 billion yen to financial institutions and other creditors, in the form of interest on borrowings. We distribute value to society and local communities through the government and through our own social contribution activities. We recorded a loss of 4.9 billion yen to the government this year, as the combined total of corporate income tax plus other taxes and public charges liable as expenses. We also gave 0.4 billion yen back to the community in the form of social contribution activities, including donations, lending our facilities to the public and providing employees’ services. Cash dividends, which represent the value that we distribute to our shareholders (companies and individuals, in Japan and overseas), came to a total of 9.8 billion yen. Retained earnings to cover investment and contingencies for the future meanwhile totaled 10.6 billion yen.

Economic Added Value

Economic added value

Category Stakeholder Amount (millions of yen) Details/method of calculation
Revenues Customers and suppliers 1,229,709 Net sales, non-operating income, extraordinary income
Payments Suppliers 1,160,802 Operating costs (cost of sales and selling, general and administrative costs, minus deductions for personnel costs, tax and public charges, and donations)
Employees 49,982 Personnel costs (including statutory welfare expenses and retirement benefit expenses)
Creditors 3,023 Interest expense
Government ▲ 4,880 Taxes (corporate income tax, and other taxes and public charges liable as expenses)
General public 405 Donations, etc.*
Shareholders 9,819 Cash dividends paid
Retained earnings 10,558 Net income minus cash dividends paid
  • Calculated based on the value of items such as donated goods, public lending of our facilities and the provision of employees’ services as well as cash donations, as specified by Nippon Keidanren.

Contributing to Local Communities as part of our Overseas Operations

Whenever we engage in business activities overseas, we make every effort to understand conditions in each country and the national identity of its people, placing an emphasis on engaging in activities as a member of the local community. In addition, we re-invest revenue earned from our overseas operations back into the local community wherever possible, in order to continue growing our business and contribute to the sustainable development of the local area.

Pension Contributions

Obligations relating to unfunded lump-sum severance payment plans and funded defined benefit pension plans totaled 33.1 billion yen and 40.1 billion yen respectively. 66.8 billion yen of this total was paid out in the form of pension assets to outside funds (coverage: 91.2%). In addition, 3.2 billion yen was registered as expenses in the form of accrued retirement benefits, with the remaining amount of 3.3 billion yen classed as unrecognized benefit obligations. We plan to amortize all unrecognized benefit obligations over the next ten years. Unrecognized retirement benefit liabilities are mainly posted as expenses based on the straight-line method for a 10-year period.

Financial Assistance from the Government

We received the amount of 0.01 billion yen in grants, subsidies and other financial assistance from the government. The government does not hold shares in Mitsubishi Materials or any of our Group companies.



Building and Enhancing Relations with Stakeholders

Dialogue with Shareholders

Our Ordinary General Meeting of Shareholders offers an invaluable opportunity for direct communication between our management members and shareholders. We therefore strive to send out materials relevant to the meeting at the earliest possible date, while also providing the materials on our website well in advance of statutory deadlines, to give shareholders sufficient time to consider the matters to be presented and resolved at the meeting. We also endeavor to expand the range of our information disclosure by posting the status of corporate governance including evaluations of the effectiveness of the Board of Directors.
Besides permitting shareholders to exercise their voting rights in writing or online, we have introduced an electronic voting platform to facilitate voting by both domestic and international institutional investors. We use slides with accompanying narrations at the General Meeting of Shareholders to help ensure participants’ clear comprehension of the presented contents. We also publish shareholders’ voting results for every resolution on the Website, after the meeting. Further, to improve convenience for shareholders, a hybrid participation-type General Meeting of Shareholders (live streaming) has been conducted from the 96th Ordinary General Meeting of Shareholders held on June 24, 2021. The streamed video of the General Meeting of Shareholders is also posted on the Company’s website for a certain period of time.

Distribution of Shareholders

Distribution of shareholders


Dialogue with Investors


In fiscal 2023, financial results briefings (quarterly), Management Briefing, Business Segment IR Meeting (biannually), Sustainability IR meeting, and Medium-term Management Strategy briefing were held for stakeholders. At each meeting, after explaining the contents of our financial results, management strategy and sustainability initiatives, etc., we set aside time for questions and answers in an effort to strengthen communication with participants. We communicated the feedback received from participants in a timely fashion through the IR reports published for senior management each month, and posted records including the details of the briefings and Q&A sessions to our website for viewing by individual investors.
We also actively exchanged opinions and communicated with institutional investors and securities analysts through individual meetings with institutional investors and securities analysts, small meetings with the CEO, CFO and Outside Directors, and participation in conferences hosted by securities companies. We also endeavored to communicate with individual investors by taking part in briefings for individual investors, and by posting our Material News shareholder newsletters on our website.
Going forward we will continue to engage in proactive IR and SR activities by deepening dialogue with stakeholders and maintaining and improving information disclosure.

IR and SR Activities in Fiscal 2023

Item Number of times held during fiscal 2023
Financial Results Briefing (quarterly) 4
Management Briefing 2
Business Segment IR Meeting 1
Sustainability IR meeting 1
Individual IR/SR meeting 153
Overseas IR 10
Domestic conference hosted by a securities company 2
Briefing for individual investors hosted by a securities company 1



Employee Communication

Labor Union and Management Partnership

Under our union shop scheme, we respect collective bargaining rights and freedom of association as the basic rights of workers, thereby striving to maintain a good labor-management relationship. The scheme also enables us to share information and exchange opinions between labor union and management on a regular basis. In particular, our biannual Labor-Management Conference, which is held with a year with the Mitsubishi Materials Federation of Labor Unions, is aimed at strengthening solidarity through active discussion, covering subjects such as recent issues, strategies and policies in each sector, and establishing a shared direction in the interests of the Company’s sustainable growth for the future.
Also, management spend substantial time on careful explanation and consultation with labor upon facing such events as business restructuring. The Current number of union members amongst those directly employed by Mitsubishi Materials (including employees on assignment) stood at 4,155. Including labor unions of Group companies that belong to Mitsubishi Materials Federation of Labor Unions, the total number of members was 7,098 (as of March 2023).

Number of Union Members (full-time equivalent)

Item Number of employees
Non-consolidated 4,155
Consolidated 7,098


Communication Measures

The Group implements various communication measures with the aim of becoming an organization with good and healthy communication where employees have unrestricted communication. The Group began its inner branding activities in fiscal 2022 with the goal of encouraging employees to take ownership of “Our Commitment.” We are implementing numerous initiatives based on the three directions of “1. Communication with management,” “2. Connect every single employee and the entire Group horizontally” and “3. Support each challenge”.
Mitsubishi Materials Corporation started distributing smartphones to all employees in fiscal 2023. This is intended to activate internal communication through means such as delivering information to employees in a timely manner and enabling employees to communicate with each other using chat functions while also promoting DX and improving operational efficiency.

Personal Mission Campaign

Led by our ambassadors, the “My Personal Mission Campaign” was launched in fiscal 2023. Through the campaign, Group employees shared their personal missions toward the realization of “Our Commitment”. Employees’ missions are posted on a special website, which was launched in July 2022. The website also introduces how employees interpret “Our Commitment” in their own way and face their daily work, together with various measures to create good and healthy communication.


Town Hall Meetings

In connection with internal branding activities, we hold town hall meetings as a way to enhance communication of management information and promote two-way dialogue. In fiscal 2023, we held 28 meetings for Mitsubishi Materials employees regarding the Four Management Reforms and eight meetings for Group employees covering areas such as Medium-term Management Strategy FY2031 and financial results.

Internal Radio-style Broadcasts

Created to promote communication with managers and employees, regular radio-style broadcasts where the CEO personally acts as an entertainment personality, answering a range of questions from Group employees, have been delivered since fiscal 2022. Archived data can be posted on Link MATERIALS (Mate-Link) *and can be listened to by employees who cannot hear the real-time transmission. Fiscal 2023 saw a special project comprising real-time broadcasts from work sites, during which employees introduced their workplaces and their work. We have received feedback that this opportunity to hear the CEO’s honest views and get an insight into his personality as he converses with guests in a friendly atmosphere distinct from official management messages leads to a better understanding of the Company and management reforms.

  • Link MATERIALS (commonly known as “Mate-Link”): We have established an intranet site as a Company-wide communication hub. The site is used to communicate important news in a timely fashion, for interactive projects to stimulate communication, and to disseminate information about initiatives underway to realize Our Commitment.


Reverse Mentoring

Reverse mentoring is a program in which young employees become the mentors and give mentoring to Executive Officers. By discussing various themes from a standpoint different from that of work, we aim to provide opportunities to gain mutual awareness and foster culture of good and healthy communication is possible. In fiscal 2024, we implemented a new format reflecting feedback such as the results of participant surveys. This includes a system whereby mentors choose their own mentees based on a profile describing elements such as the mentees’ preferred mentoring period, frequency of sessions and discussion topics.

Ambassador Activities

Ambassadors are appointed from throughout the Group through an open application process. They promote inner branding, and have been actively fulfilling this role since fiscal 2022. Their main role is to create a mechanism for each employee to take ownership of “Our Commitment” and put it into practice through their actions. In fiscal 2023, the second intake of 16 ambassadors undertook various activities to deepen employees’ understanding of their and the Group’s mission. These activities included the provision of audio material by ambassadors, videos introducing different departments, and the sharing of interviews with people who are active in various fields outside the Group.


Half-day Workplace Experiences

Half-day workplace experiences are being carried out as an opportunity for employees to experience jobs at other workplaces. This promotes communication centered on the themes of “know” and “connect.” Know means getting to know other divisions and Group companies by learning about the people and their work and understanding how they contribute to “Our Commitment”, and connect refers to horizontal communication and relationship building both between Divisions and Companies and within the workplace. This initiative serves as an opportunity for individuals to consider their own career on an autonomous basis. In fiscal 2023, 33 people took part at 19 workplaces.