Purpose of activities | Activities during FYE March 2023 | Self- assessment |
Targets/plans for activities FYE March 2024 onwards |
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B |
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A |
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Self-assessment grades A: Target achieved B: Target mostly achieved C: Target not achieved
As a comprehensive materials manufacturer, we promote partnership and coexistence with a wide range of suppliers throughout the value chain to improve added value. We also actively develop global procurement activities with the aim of stable product supplies and more competitive products.
As stable procurement leads to consistent operations and reduced opportunity loss, we aim to build cooperative relationships that prevent and mitigate negative impacts on society and the environment with all of our suppliers, ensuring that all transactions are fair, avoiding corruption, complying with the law and taking into account issues such as human rights.
In conducting procurement operations, we promote CSR initiatives in all business activities, including the procurement of raw materials, development, production, distribution, consumption, disposal, and recycling of materials and products.
(Establishment date: December 1, 2021)
In an effort to reinforce our organizational responsiveness with regard to CSR priorities throughout the global supply chain, we inform suppliers of the CSR Procurement Guidelines for the Procurement & Logistics Division and make efforts such as entering into agreements that incorporate the guidelines following mutual verification and consensus regarding the details with suppliers. The guidelines apply to all raw materials (excluding copper ores) and equipment. They consist of a Basic Procurement Policy, our top-level policy setting out requirements to which we must adhere in terms of fair trade, respect for human rights, legal compliance, ethical procurement, occupational hygiene, environmental protection, and information security, and in addition to these items, we require our suppliers to comply with other requirements stated in our CSR Procurement Standards, including fair business practices, the development of work environments, working hours, freedom of association, responsible raw material procurement, and the quality and safety of products.
To ensure the effectiveness of initiatives at our suppliers, we conduct supplier recruitment audits and supplier evaluations, which have been in place since April 2016, and conduct on-site audits as necessary (in the fiscal year ended March 2024, we conducted on-site audits at 2 companies).
Before starting transactions with new suppliers, we request that they conduct self-evaluations using a Supplier Self-Check Sheet. This self-check sheet consists of items that assess their initiatives on social responsibilities related to human rights (such as child labor, forced labor, and unreasonably cheap labor) and procurement (including negative environmental impact), and from the fiscal year ended March 2024 we have added new questions on CSR, human rights, labor and health & safety at suppliers, corporate ethics including items on preventing corruption such as bid rigging, cartels and abuse of superior bargaining position, as well as policies, systems, initiatives and corrective mechanisms related to the environment. The Procurement & Logistics Division assigns scores based on responses on the Self-Check Sheet, and determines handling policy based on the total evaluation score.
Based on our rules, we request that existing suppliers evaluate themselves every other year using the Supplier Self-Check Sheet, thereby checking the progress of their initiatives. In addition, we conduct a comprehensive performance evaluation consisting of a total of 28 review items such as information security, quality control, delivery management, and prevention of corruption such as collusion, cartels, and abuse of superior bargaining position.
The necessary corrective actions are taken based on the results of the performance evaluations.
In the fiscal year ended March 2024, we collected Supplier Self-Check Sheets from 219 suppliers (25 new ones and 194 existing ones). We conducted screenings of all 25 new suppliers and periodic evaluations of 168 of our 194 existing suppliers. There were no suppliers deemed high risk.
Starting the fiscal year ending March 2025, we have been conducting human rights due diligence on suppliers deemed to have ESG and human rights risks in the supply chain based on the Supplier Self-Check Sheets. By encouraging suppliers to make improvements, we are working to realize improvements across the entire supply chain.
Mitsubishi Materials Corporation CSR Procurement Guidelines(240KB)
We procure copper concentrate, a raw material for copper products, primarily from the overseas mines in which we invest, to ensure a stable supply to domestic smelters and refineries both in Japan and overseas. While this places us in the position of a non-operator not directly involved in mine management, as a company engaged in global procurement activities, we hope to fulfill our sustainable development responsibilities.
We place importance on dialog with indigenous peoples and members of local communities. For example, we assign specific staff members to participate in the advisory committees of mines in which we have a certain scale of interests.
Moreover, our Metals Company requires the mining companies to comply with Sustainability Investment Guideline and CSR procurement standards before we invest in them. We also check the status of compliance with those standards, for example through regular questionnaire surveys, and as necessary seek to understand and improve the situation. We also regard environmental preservation and respect for human rights as important matters to consider in management of the global supply chain and have incorporated these considerations into our business processes.
・Legal and regulatory compliance
・Prevention of corruption
・Support for payments to government agencies and the Extractive Industries Transparency Initiative (EITI)
・Sustainability governance
・Acquisition of outside certification on sustainability
・Assessment of environmental and social risks
・Management of environmental and social risks
・Formulation of emergency response plans
・Appropriate response to conflict and high-risk regions
・Encouraging responsible action by suppliers, contractors and other partners
・Avoiding forced relocation and economic loss
・Respect for voluntary principles of safety and human rights
・Prohibition on child labor
・Prohibition on forced labor
・Respect for freedom of association and rights to collective bargaining
・Compliance with minimum wages and statutory limits on overtime work
・Respect for the livelihoods and rights of indigenous peoples
・Implementation of free, prior and informed consent (FPIC)
・Respect for women’s rights, prohibition on discrimination and harassment
・Complaint handling mechanisms
・Stakeholder engagement
・Implementation and monitoring of health and safety measures
・Health and safety training, monitoring of health status
・Formulation of mine closure plans
・Appropriate water management and sustainable water use
・Appropriate management of tailings
・Prevention of pollution, appropriate disposal of waste
・Improved energy efficiency, disclosure of GHG emissions
・Respect for protected zones
・Biodiversity impact and risk assessments
・Support for community development
・Provision of economic opportunities for community-based companies
・Support for artisanal and small-scale mining (ASM)
Mitsubishi Materials Corporation joined Zafranal copper mine development project in Peru with Canadian mining company Teck Resources Limited and its subsidiary.
Compania Minera Zafranal S.A.C. (CMZ) is tasked with operating the project. Mitsubishi Materials Corporation (MMC) has 20% share of the project. MMC assigns personnel at the subsidiary established in Peru, and works with CMZ to continually monitor the situation on site and drive implementation of the project.
CMZ prizes the cultures, values, traditions and historical heritages of local communities, and has been establishing transparent and sincere long-term partnership with them. Accordingly, CMZ establishes opportunities for formal dialogue with local communities and additional stakeholders, and also conducts individual briefings and responds to their inquiries. CMZ has been building public trust while reflecting local opinions and needs through these activities.
While advancing legal processes to get approval of the Environmental Impact Assessment, CMZ is consulting with local communities. It is also undertaking environmental and social baseline studies in the project and related infrastructure areas.
The United States’ Dodd-Frank Wall Street Reform and Consumer Protection Act requires all companies listed in the US to disclose whether their products contain “conflict minerals,” defined as gold, tin, tantalum and tungsten, along with details of reasonable survey on producing countries and the survey results, in an effort to prevent minerals mined in the Democratic Republic of Congo (DRC) or its neighboring countries from being used to fund the activities of armed groups responsible for human rights violations and other acts of violence. Recently, the scope of conflict minerals has been expanded, particularly in EU countries, with consideration also being given to cobalt and silver from a broader perspective of responsible mineral procurement. In tandem with this trend, the OECD, SEC, and organizations such as RMI*1, LBMA*2, and LME*3 have formulated guidance related to the issue of conflict minerals (responsible mineral procurement management).
As a responsible business operator smelting gold, silver, copper, lead and tin, we have instituted initiatives such as conducting surveys of the producers and traders of these metals based on efficient due diligence standards to respond to these global requirements, and have formulated and disclosed related policies.
Contact the Responsible Minerals Control Hotline if you identify any act in violation of the provisions of our Responsible Minerals Control Policy.
The Metals Company has pledged its support for a campaign to ensure a transparent flow of funds related to mineral resources, as promoted by the Extractive Industries Transparency Initiative (EITI)*1 since June 2011. We began preparations for tackling the issue of conflict minerals in 2012, obtained certification in August 2013 for our compliance with the London Bullion Market Association (LBMA)*2 gold guidance on avoiding use of conflict minerals and have had this certification renewed every year since. We have also begun operations and obtained certification with regard to silver.
Since February 2014, we have received annual certification of our conformance with the RMI*3 of RMAP*4 regarding tin.
Establishment date: 19th June 2013
Last revised date (Rev. 9): 1st October 2024
The Metals Company (hereinafter the “Company”) engages in bullion manufacturing for gold, silver, and tin. The Company does not procure materials originating from high-risk areas, such as conflict-affected areas, connected to human rights abuses, terrorist financing, money laundering and illegal trade. Also, the Company recognizes the importance of addressing environmental and sustainability responsibilities in the procurement of materials. To rigidly maintain this practice, the Company has adopted a control system that follows the London Bullion Market Association (LBMA) guidance for gold and silver, and for tin, the Responsible Minerals Assurance Process (RMAP) by Responsible Mineral Initiative (RMI) with the commitment to the due diligence steps specified in Supplement on Tin, Tantalum and Tungsten of “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas" (hereinafter “OECD Guidance), and undergoes regular audits by third-party bodies.
The Company hereby sets out its responsible minerals control policy applicable to gold, silver and tin as follows and will implement the following measures.
Copper cathodes and Lead Ingots which Metals Company manufactures are registered with LME (London Metal Exchange). In line with LME’s initiative to introduce “LME Policy on Responsible Sourcing of LME-Listed Brands”, Metals Company has set out its Responsible Minerals Sourcing Policy for Copper and Lead as below and will implement responsible sourcing measures to comply with LME’s requirements.
Established on: September 1, 2023
Naoshima Smelter & Refinery of Metallurgy Division, Metals Company, Mitsubishi Materials Corporation, Onahama Smelter & Refinery of Onahama Smelting & Refining Co., Ltd., and Hosokura Metal Mining Co., Ltd. manufacture copper cathodes and lead ingots. In procuring raw materials for these metals, the Metals Company of Mitsubishi Materials Corporation (hereinafter referred to as the “Company”) establishes and operates a control system in accordance with the Responsible Sourcing Policy of the London Metal Exchange as well as the Joint Due Diligence Standard of The Copper Mark, and will undergo independent third party assessment of its risk assessment.
The Company hereby sets out its Responsible Minerals Sourcing Policy for Copper and Lead as follows and will implement the following measures.
In June 2021, Japan New Metals Co., Ltd., a Group company whose operations include tungsten smelting and refining, revised the existing Conflict Mineral Management Policy to the Responsible Mineral Procurement Management Policy, which has expanded its scope of control to a wider range of areas and minerals. As a company smelting and refining tungsten in Japan, Japan New Metals Co., Ltd. carries out management to ensure that raw materials put into the smelting and refining process are ones conforming to the Responsible Mineral Procurement Guidelines. The company also carries out the similar management for raw materials purchased from external tungsten smelting and refining companies. Furthermore, in November 2021, the company acquired the Responsible Minerals Assurance Process (RMAP) conformance certification, which was updated from the CFS Certification.
Responsible Mineral Procurement Management Policy of Japan New Metals Co., Ltd.
RMAP certification obtained by Japan New Metals Co., Ltd.