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Building and Enhancing Relations 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 reflect their expectations and requirements in our business strategies and activities. While creating more opportunities for communication, our aim is to incorporate stakeholders’ perspectives into 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

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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 development of a recycling-oriented society" is stated as one of the three pillars of the company's vision.
  • 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 FY2046
  • 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 abandoned mines
  • Continuing management work, such as mine drainage treatment  and maintenance of tailings dams, at abandoned 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 abandoned mines
  • Cultivating the development of abandoned mine workers
  • Developing technologies related to the management of abandoned 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 facilities 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 "aggressive quality"
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
Human resources development  
  • Activating employee communication
  • Development and continual improvement of an education and training system
  • Developing next-generation business leaders
  • Building and utilizing a management system
Promoting greater roles for diverse human resources  
  • 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

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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 many and varied 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 2022

Revenue for Mitsubishi Materials in fiscal 2022 came to ¥1214.6 billion. 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 ¥1123.8 billion. After subtracting operating costs from our total revenue, the amount of added value generated through our business activities came to ¥90.8 billion.

Distribution of Added Value

Personnel costs, which include statutory welfare expenses and pension contributions and represent the portion of revenue distributed to our employees, came to ¥50.6 billion.
In the meantime, we distributed a total of ¥3.2 billion 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 paid ¥6.9 billion 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 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 ¥11.8 billion.
Retained earnings to cover investment and contingencies for the future meanwhile totaled ¥18.0 billion.

Economic Added Value

Economic added value

Category Stakeholder Amount(million yen) Details/method of calculation
Revenues Customers and suppliers 1,214,598 Net sales, non-operating income, extraordinary income
Payments Suppliers 1,123,771 Operating costs (cost of sales and selling, general and administrative costs, minus deductions for personnel costs, tax and public charges, and donations)
Employees 50,557 Personnel costs (including statutory welfare expenses and pension contributions)
Creditors 3,172 Interest expense
Government 6,857 Taxes (corporate income tax, and other taxes and public charges liable as expenses)
General public 444 Donations, etc.*
Shareholders 11,783 Cash dividends paid
Retained earnings 18,014 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 the relevant country and the national identity of its people, so that we can integrate into the local community as a corporate citizen. We re-invest money that we make through 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 ¥42.2 billion and ¥48.7 billion respectively. ¥76.1 billion of this total was paid out in the form of pension assets to outside funds (coverage: 83.7%). A further ¥9.8 billion was registered as expenses in the form of accrued retirement benefits, with the remaining ¥5 billion classed as unrecognized benefit obligations. We plan to amortize all unrecognized benefit obligations over the next ten years.Unrecognized pension liabilities are mainly posted as expenses using the straight-line method for a 10-year period.

Financial Assistance from the Government

We received ¥0.3 billion 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.

MMC