Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change (including Global Warming)
• Establishing a Recycling-Oriented Society
• Developing Environment-Friendly Technologies
• Harmony with the JX Group’s mission statement

Environmental Achievements

• Reduced energy consumption intensity by 3.5% from the average of the period between fiscal 2003 and fiscal 2005
• Reduced CO2 emission intensity by 6.9% from the average of the period between fiscal 2003 and fiscal 2005
• Reduced final waste disposal intensity by 73% from the average of the period between fiscal 2003 and fiscal 2005
• Decreased CO2 emissions by about 23% (approximately 21 thousand tons) at overseas operating sites by shifting from in-house power generation to purchasing electric power from electric power companies.

Social Achievements

• Implemented relief activities in areas affected by large-scale disasters in the Philippines, Indonesia, Haiti, and Chile
• Conducted CSR briefing sessions (36 times), held employee roundtable discussions (39 times), and carried out employee surveys
• Implemented the Community Management Program in Chile with three pillars: water management, transportation safety, and regional employment.

Governance Achievements

• No occurrence of major misconduct in fiscal 2009 reported
• Established the Basic Quality Policy and the Quality Management Rules
• Obtained OHSAS 18001 certification at several domestic and overseas operating sites

Climate Goals & Targets

Environmental Challenges

• Growing concern and pressure from society to address global warming and reduce CO2 emissions
• Tight demand-supply conditions in the resources market and higher resource prices
• Need to collect recycled materials and develop technologies to efficiently recover value-bearing metals from recycled materials
• Changing needs of customers and other stakeholders
• Need to develop highly functional materials to realize resource conservation, high recyclability, and reduction of environmental impact
• Deteriorating grade of copper concentrate resulting in increased amount of concentrate needed and higher temperatures in furnaces.

Mitigation Strategies

• Systematically reduce greenhouse gas emissions
• Promoting materials stewardship and actively recovering metals from urban mines
• Developing technologies to recover value-bearing metals from recycled materials
• Developing technologies that reduce environmental impact
• Modifying the shape of the water-cooling apparatus in flash furnaces to increase efficiency and extend maintenance intervals.
• Decreasing hourly input amount of copper concentrate and increasing processing time to improve extraction percentage.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Open and fair trade transactions
• Environmental protection based on Basic Environmental Policy and Green Purchase Guideline
• Collaboration to realize more-efficient logistics and recycling
• Added questions about human rights to improve supply chain

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3, GRI Mining and Metals Sector Supplement, ICMM's 10 sustainable development principles

Certifications: ISO 14001, OHSAS 18001, ISO/TS 16949

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Hyper Eco Alloys
• Environment-friendly electronic materials
• Cathode materials for lithium-ion batteries

Awards & Recognition

• President’s Award
• TPM Excellence Award
• PQS Award from Intel Corporation
• Best Supplier Award from TAIFLEX Scientific Co., Ltd.
• Sony Green Partner Award
• RAYTHEON NCS Supplier Excellence Award

Environmental Metrics

ESG Focus Areas

• Developing environment-friendly technologies
• Implementing initiatives regarding climate change issues including global warming
• Establishing a recycling-oriented society
• Responses to the Great East Japan Earthquake

Environmental Achievements

• Reduced energy consumption intensity by 5.4% from the average of the period between fiscal 2003 and fiscal 2005
• Reduced CO2 emission intensity by 8.1% from the average of the period between fiscal 2003 and fiscal 2005
• Reduced final waste disposal intensity by 78% from the average of the period between fiscal 2003 and fiscal 2005
• Implemented photovoltaic power generation at the Hibi Kyodo Smelter

Social Achievements

• No occurrence of significant misconduct in fiscal 2010
• Obtained OHSAS 18001 certification at HMC Dept. of Hitachi Works and Tatebayashi Works of Sanyu Electronic Industry Co., Ltd.
• Conducted CSR briefing sessions (45 times), held employee roundtable discussions (43 times), and carried out employee surveys

Governance Achievements

• No occurrence of significant misconduct in fiscal 2010 reported
• Established the Citizenship Committee in April 2011 to activate its social contribution activities

Climate Goals & Targets

Environmental Challenges

• Changing needs of customers and other stakeholders
• Growing concern and pressure from society to address the issue of global warming
• Tight demand-supply conditions in the resources market
• Great East Japan Earthquake

Mitigation Strategies

• Strengthened product development function by placing a branch of the Technology Development Center in each plant
• Systematically reduced greenhouse gas emissions
• Promoting materials stewardship and actively recovering metals from urban mines
• Established Disaster Prevention Headquarters to confirm disaster-affected circumstances, safety of employees, and restorative needs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Open and fair trade transactions; promoting environmental protection; collaborating to realize more-efficient logistics and recycling

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, ICMM

Certifications: ISO 14001, OHSAS 18001, ISO 9001, ISO/TS 16949

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Environment-friendly electronic materials; highly recyclable materials; lead-free surface-mounted chemicals; cyanide-free electroless gold plating; arsenicum-free copper foil; transparent semiconductors; cathode materials for lithium-ion batteries

Awards & Recognition

• Various awards from customers and public/industry organizations

Environmental Metrics

ESG Focus Areas

• Improving and strengthening the internal control system
• Creating a culture of safety
• Enhancing the human resource development program for full utilization of diverse human resources
• Establishing a recycling-oriented society
• Innovating productivity of resources and materials

Environmental Achievements

• Achieved 0.4% ratio of non-value-bearing waste volume
• Reduced energy consumption intensity at smelters and refineries by 3% compared to fiscal 2011

Social Achievements

• Launched an overseas language training system for all second-year employees
• Established a new post, Senior Supervisor for Safety, reporting directly to the president
• Opened the JX Safety Education Center

Governance Achievements

• Established the Internal Control Office
• Revised whistleblower program
• Implemented labor compliance inspections

Climate Goals & Targets

Environmental Challenges

• Embezzlement of corporate funds at a Group company
• Major accidents in the past few years
• Inadequate internal control system
• Need to develop global human resources
• Need to establish a recycling-oriented society
• Need to innovate productivity of resources and materials

Mitigation Strategies

• Group-wide efforts to strengthen internal controls and safety and health management
• Completion of the Caserones Copper and Molybdenum Deposit Development Project
• Further expanding and raising profitability of midstream and downstream businesses
• Expanding the educational program for global readiness
• Establishing the Endowed Research Unit for Nonferrous Metal Resource Recovery Engineering
• Developing new copper foil and precision rolled materials
• Establishing a Market Development Department

Supply Chain Management

Supplier Audits: 409 vendors surveyed, 346 responses received

Responsible Procurement

• Green Purchasing Guideline
• Due diligence for supply chains of gold
• Internal management system to support supply chain due diligence

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Sustainability Reporting Guidelines, GRI Mining and Metals Sector Supplement, ICMM's 10 sustainable development principles, ICMM’s Assurance Procedures

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Ultrathin treated rolled copper foil
• Ultrasmooth treated rolled copper foil
• JXUT Series Ultrathin Copper Foil with Carrier
• High-Conductivity Titanium Copper Alloy (C1990HC)
• High-Conductivity Corson Alloy (NKC4419)
• High-Conductivity Copper Alloys (NKE031 and NKE012)
• Cathode materials for in-vehicle lithium-ion batteries

Awards & Recognition

• Meritorious Organization award from Oita Prefectural association dedicated to eliminating organized crime groups
• Various awards from public and industry organizations

Environmental Metrics

ESG Focus Areas

• Insisting on full compliance
• Innovating the productivity of resources and materials
• Ensuring occupational health and safety
• Developing and utilizing human resources
• Using resources effectively
• Protecting the environment

Environmental Achievements

• Domestic CO2 emissions in fiscal 2016 were 853 thousand tons, 167 thousand tons less than the annual target of 1.02 million tons, achieving the target.
• The ratio of non-value-bearing waste volume in fiscal 2016 was 0.5%, achieving the target.
• Comprehensive compliance inspections performed at nine operating sites, along with environmental and safety audits at 11 sites, all as planned.

Social Achievements

• Introduced a safety commendation system.
• Introduced new systems to support diverse work styles, including revised childcare and family care leave systems and a trial introduction of telecommuting.
• Strengthened initiatives for developing the next generation through various programs for middle and high school students.

Governance Achievements

• Established a Compliance Committee, a Safety and Environment Committee, and a Risk Management Council.
• Revised rules for confidential information management.
• Conducted compliance education sessions for approximately 950 persons.

Climate Goals & Targets

Environmental Challenges

• One fatal accident occurred at a Group company in fiscal 2016.
• The number of accidents with lost workdays or more severe accidents has not declined.
• Fierce competition to collect the limited resources available in the recycling and environmental services business.
• Information leakage in corporations.

Mitigation Strategies

• Redoubling efforts to counter major risks and raising safety awareness through experiential risk training.
• Further setting apart services from those of other companies by raising the level of separation and analysis technologies and building a resource collection network.
• Enhanced management structure for highly material information (confidential information) by forming a working group and revising rules for confidential information management.

Supply Chain Management

Supplier Audits: 584 suppliers covered in green purchasing surveys (95% of the value of items purchased)

Responsible Procurement

• JX Nippon Mining & Metals Group Basic Procurement Policy
• Green Purchasing Guidelines
• Policy on exclusion of conflict minerals

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines, ICMM's 10 Principles

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• JX-iodine process for leaching copper from low-grade ores

Awards & Recognition

• Supplier Excellence Award from Texas Instruments

Environmental Metrics

ESG Focus Areas

• Ensuring occupational health and safety
• Using nonferrous metal resources effectively
• Assuring product quality and safety
• Establishing a recycling-oriented society
• Developing human resources
• Establishing a low-carbon society
• Providing a rewarding work experience
• Insisting on full compliance
• Promoting community involvement and development
• Respecting human rights

Environmental Achievements

• Domestic CO2 emissions in fiscal 2017 were 858 thousand tons, 161 thousand tons less than the single-year target of 1,019 thousand tons, achieving the target.
• Due to thoroughgoing separation of waste materials and continuation of reuse and recycling efforts, the ratio of non-value-bearing waste volume in fiscal 2017 was 0.4%, achieving the target.
• Transition to ISO 14001:2015 completed by 10 operating sites in fiscal 2017.

Social Achievements

• Total number of occupational accidents at domestic operating sites declined for the second straight year, and accidents with lost work days or worse were reduced by half year on year.
• Introduced new and revised systems aimed at creating workplace environments in which a diverse range of personnel can do fulfilling work, including a new system for returning to work following life-event leave, revision of childcare and family care leave systems, and introduction of telecommuting.
• Women made up 28% of newly hired university graduates in the Company in fiscal 2017.

Governance Achievements

• No adverse dispositions from regulatory authorities for violations of laws and regulations with respect to those governing bribery and anti-competitive behavior.
• Established a program to ensure compliance with competition laws.
• Introduced a stock remuneration plan in July 2017.

Climate Goals & Targets

Environmental Challenges

• Caserones Copper Mine continued to operate at a loss in fiscal 2017 due to costs of natural disaster countermeasures, high production costs, and increased costs for ramping up to full production.
• Grade of precious metals collected continues on a downward trend as manufacturers seek to reduce the quantities of such metals used in products.
• Decreasing number of researchers and engineers in Japan working in fields related to smelting, refining, and recycling nonferrous metals.

Mitigation Strategies

• Established a new Caserones Division to provide agile, centralized administration of the Caserones Copper Mine.
• Increased share of the Los Pelambres Copper Mine and transferred share of the Collahuasi Copper Mine.
• Launched the Endowed Research Unit for Nonferrous Metal Resource Recovery Engineering (JX Metals Endowed Unit) to unify the forces of industry, government, and academia.

Supply Chain Management

Supplier Audits: 449 suppliers (95% of the value of the items purchased)

Responsible Procurement

• Green Purchasing Policy
• Green Purchasing Guidelines
• Policy on avoidance of conflict minerals

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, ICMM's 10 Principles

Certifications: ISO 14001, ISO 9001, OHSAS 18001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Awards & Recognition

• Best Contribution Award (Samsung Electronics)
• Platinum Perfect Quality Award (ON Semiconductor)
• Best Supplier Award 2016 (STMicroelectronics)
• Appreciation Award (Global Foundries Fab)

Environmental Metrics

ESG Focus Areas

• Environmental Conservation
• Advanced Materials
• Attractive Workplaces
• Human Rights
• Community Coexistence
• Governance

Environmental Achievements

• Switched to CO2-free electricity at major operating sites in Japan and overseas.
• Increased the percentage of recycled raw materials in copper smelting.
• Landfill disposal rate of 0.68%.

Social Achievements

• Launched JX Metals Circular Solutions Europe GmbH to promote LiB recycling.
• Improved annual leave utilization rate (77.9%).
• Increased cancer screening rate (63.1%).

Governance Achievements

• Established ESG Promotion Department.
• Implemented a transition-linked loan framework.
• Appointed new outside directors.

Climate Goals & Targets

Environmental Challenges

• Production decline at Caserones Copper Mine due to a strike.
• Low margins for purchasing raw copper concentrates.
• COVID-19 pandemic impacts on operations and supply chains.

Mitigation Strategies

• Improved operation and maintenance at Caserones Copper Mine.
• Increased investment in facilities at Saganoseki Smelter & Refinery.
• Acquired eCycle Solutions Inc. to bolster recycled material collection.

Supply Chain Management

Supplier Audits: 17 overseas suppliers audited in 2021.

Responsible Procurement

• Green Purchasing Guidelines
• CSR Procurement Questionnaire
• Conflict minerals due diligence.

Climate-Related Risks & Opportunities

Physical Risks

• Damage to facilities due to extreme weather events.

Transition Risks

• Increased costs due to decarbonization policies.
• Loss of opportunity due to delayed action.

Opportunities

• Increased demand for nonferrous metals in renewable energy and EVs.
• Increased demand for high-end electronic materials.

Reporting Standards

Frameworks Used: GRI Standards, ICMM Mining Principles, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, Copper Mark (in progress)

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through decarbonization, resource recycling, and sustainable materials.

Sustainable Products & Innovation

• Sustainable Copper (Green Hybrid Smelting)
• Sputtering targets for semiconductors
• Treated rolled copper foil

Awards & Recognition

• iF Design Award 2022
• Intel EPIC Distinguished Supplier Award 2022
• University of Tokyo Shokumon Award 2022

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Advanced Materials
• Attractive Workplace
• Human Rights
• Community Coexistence
• Governance

Environmental Achievements

• Reduced landfill disposal rate to less than 1% in FY2023.
• Achieved 100% attendance rate for human rights training in FY2023.
• Obtained The Copper Mark certification for Sagae Smelter and Hitachi Plant in December 2022.
• Introduced electric buses at the Isohara Plant in October 2023 to reduce CO2 emissions.

Social Achievements

• Launched employee wellbeing initiatives, including health checkups and mental health support.
• Improved employee annual leave utilization rate to 85.3% in FY2023.
• Maintained a disability employment rate above 2.3% in FY2023.
• Established the “Happy Support Room” employing individuals with intellectual and developmental disabilities.

Governance Achievements

• Established a Nomination and Remuneration Advisory Committee.
• Implemented a company-wide risk management system (ERM).
• Implemented a compliance training program with 100% attendance rate in FY2023.
• Established internal carbon pricing.

Climate Goals & Targets

Environmental Challenges

• Market downturn in semiconductor and information and communication materials.
• Supply chain disruptions due to geopolitical risks and natural disasters.
• Securing a stable supply of raw materials.
• Addressing climate change related risks (transition risks and physical risks).

Mitigation Strategies

• Structural reforms, including organizational restructuring and cost optimization.
• Investment in new factories to increase production capacity.
• Development of alternative sourcing strategies and partnerships.
• Implementation of BCP and BCM to mitigate physical risks.
• Development of sustainable copper vision and Green Enabling Partnerships.

Supply Chain Management

Responsible Procurement

• Code of conduct for suppliers.
• Supplier sustainability requirements.
• Conflict minerals due diligence.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Increased costs due to decarbonization policies.
• Carbon taxes.

Opportunities

• Increased demand for copper in decarbonization efforts.
• Increased demand for advanced electronic materials.
• Opportunities in the circular economy.

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001, ISO 45001, The Copper Mark

Sustainable Products & Innovation

• 100% recycled electrolytic copper
• Advanced materials for semiconductor and information and communication technologies.

Awards & Recognition

• Intel EPIC Distinguished Supplier Award