Create a world without waste to preserve our planet.
Sustainability Report 2019 About Us The Sims Managing Our About Purpose Sustainability Performance This Report
Contents
About Us The Sims Purpose Managing Our Performance About This Report Sustainability
2019 Sustainability Trends Shaping Governance 20 Environmental 30 About This Report 55 Highlights 02 Our World 12 Materiality 23 People 37 GRI Table 56 About Sims Metal Sims and The Management 03 Circular Economy 15 Task Force on Responsible Business 51 Our Material Topics 62 Climate-related Our Business How Sims Creates Value 16 Financial Disclosures 26 Economic Performance 53 At A Glance 05 The Circular Economy Sims Integrated Strategy 06 And Climate Change 17 Chairman’s Message 07 Our Sustainability Strategy 18 CEO’s Message 09
01 About Us The Sims Managing Our About Purpose Sustainability Performance This Report
About Us 2019 Sustainability Highlights
The Sims Purpose Managing Sustainability Our Performance
Materiality 400k assessment A $27m tonnes of electronic completed to inform earnings1 realised through strategic waste recycled our new sustainability investments in non-ferrous secondary strategy and reporting separation plants, cable granulators and upgrades to material recovery plants 500 k tonnes of municipal curbside recycling processed A $125m Member of Australia Index invested to close the loop on our ASR2 since 2009 waste over the past two years 9.8 m tonnes of secondary metals recycled
Member 400k of the World Business Council 37% 25% MWh of renewable for Sustainable Development Board of Directors executive leadership energy generated are women team are women
1 Earnings Before Interest and Tax (EBIT) 2 Automotive shredder residue 02 About Us The Sims Managing Our About Purpose Sustainability Performance This Report
About Us About Sims Metal Management
Founded in 1917, we’re a global leader in metal and electronics recycling and an emerging leader in the municipal recycling and the renewable energy industries. Driven by our purpose, create a world without waste to preserve our planet, we continue to innovate and offer new solutions in the circular economy for consumers, businesses, governments and communities around the world.
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About Us 102 Years Of Global Recycling Experience
Our locations Sales to customers
250+ facilities operating in 18 countries HQ
% 5,000 Other 45 employees Turkey 16 United States 14 China 10 Australia 8 South Korea 7 102 years of recycling experience A $6.6bn 137 44 28 50 metal recycling metal recycling e-recycling metal recycling facilities across facilities across facilities across facilities across No single customer contributed 10 percent US $4.7bn or more to the Group revenue for all the sales revenue in 2019 North America the UK 18 countries Australia periods presented.
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About Us Our Business At A Glance
Our services
Metal Recycling E-Recycling Municipal Recycling Energy Recovery Renewable Energy
We buy, process and sell We’re a market leader in We lead urban recycling in As part of our long-term Our joint venture, LMS ferrous and non-ferrous e-recycling, and we enable New York City and handle growth strategy, we will Energy, is a leader in recycled metals, through a range of industries to a portion of the curbside expand our business landfill gas-to-renewable our locations primarily securely and responsibly recycling programme for offering to include energy and an innovator in located in the U.S. the UK reuse, recycle and manage Chicago’s South side – two recovering resources solar on landfill technology. and Australia. the disposal of IT equipment of the largest urban areas in from the non-metallic LMS operates more than and electronic products in the U.S. waste that is generated 20 sites in Australia. We recover, process and a legally compliant, data from the automotive sell steel, iron, copper and We process and market 100 The recovery of landfill secure, fully traceable shredding process. aluminium to manufacturers percent of the metal, glass gas by LMS reduces and environmentally in 30 countries. Globally, we and plastic collected from By leveraging proven carbon emissions and sustainable way. recover and recycle more the 8.5 million residents of gasification technology provides enough local than 9.8 million tonnes of We recovered 400k tonnes New York, and 50 percent where no harmful materials renewable energy to power scrap metal per year, and we of electronic waste in FY19 of the paper. We’re evolving or emissions are produced approximately 70,000 homes continue to fortify and grow and recycled 15.2k tonnes our municipal recycling directly from the process, in the surrounding community. this area of our business of cloud computing material. capabilities to meet the this waste by-product will be We plan to pursue through market optionality We’re constantly exploring needs of an ever-changing transformed into a resource opportunities to expand this and operational excellence. new innovative solutions recycling landscape. in key global markets. proven business model and to serve this vast emerging Our mission is to develop This line of business will allow technology globally with the market, growing product transformative waste us to close the loop on our own goal of acquiring or building stewardship and services management solutions for waste, save on landfill and 50MW of electricity by FY25. for recycling the cloud with the megacities of the future. energy costs, and develop a focus on closing resource a new revenue stream. loops for our customers. 9. 8m 400k 100% 7 plants > 20 tonnes of scrap metal tonnes of electronic of metal, glass and plastic to be operational within LMS sites in Australia recycled globally waste recovered processed in New York City the next 10 years
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About Us Sims Integrated Strategy
Our strategy is to grow our core metal recycling business and Continue to lead metal recycling by nearly leverage industry similarities Metal Fortify and grow doubling the non-ferrous business by FY25 to expand into adjacent markets Recycling sustainable profits and grow the ferrous business to approximately 40 percent in the U.S. in the next six years. through a portfolio of businesses aligned to our purpose. Become the leading global recycler of data storage Grow product centres (the cloud), and recycle 200k tonnes of the stewardship cloud by FY25. Be the supply chain partner of choice E-Recycling and services for for Original Equipment Manufacturer (OEM) recycled recycling the cloud plastic needs.
Current Business Goals Develop recycling Expand the well-established municipal Municipal solutions for recycling business into other major U.S. cities. Recycling major cities
Recover waste Utilise auto shredder residue to create a resource, Energy to create new reduce costs and establish a new revenue stream. Recovery revenue stream Install and operate seven plants within 10 years. and reduce costs Build and operate the first plant by 2022.
Renewable Expand proven Expand proven landfill gas to energy business and business model and technology from Australia to the UK and the U.S. Energy technology globally Acquire or build 50MW by 2025. New Business Goals
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About Us Chairman’s Message Geoffrey Brunsdon
Create a world without waste to preserve our planet.
This past fiscal year, we Safety first Setting out our ambition introduced the Sims purpose: create a world without waste Safety is our first priority, and it Guided by the Sims’ to preserve our planet. is the foundation of everything purpose, in April, we shared This purpose demonstrates we do. It is, therefore, with our ambitious strategic our belief that sustainability immense sadness that plan. This strategy sets is at the core of our business I report the loss of two Sims Sims on a path to pursue and is key to creating long- employees as a result of opportunities for growth in its term shareholder value. workplace incidents during core metal and e-recycling the course of FY19. On behalf businesses, and to reduce Sims’ purpose provides of my fellow directors, I send waste and produce clean the lens by which we will my deepest condolences energy to further the reach consider every aspect of to their families, friends and of its sustainability efforts. our business: appointing Sims colleagues. As a global company with the right leaders; guiding a 102-year heritage, Sims is No workplace injury is corporate culture; innovating uniquely placed to capitalize acceptable, and we must do sustainable solutions to drive on the rising demand for everything possible to make our profitability; and working recovering end-of-use sure all of our employees with partners to advance the materials and the transition return home safely at the end circular economy. It clearly to a circular economy. articulates our identity of the day. The Board and and enables us to attract executive leadership team are Sims has a strong history like-minded employees, fully committed to an ongoing of innovation, and we will shareholders and partners. full review of our safety continue to improve the culture and policies to act on quality of our processes. improvements that will help us keep all our employees safe. By working together we will create a workplace that is injury free.
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About Us
Chairman’s Message continued
Strategic investments in new Working together to This is our first year reporting Sims’ workforce is technologies to increase metal maximise our impact on the Group’s sustainability geographically diverse with yields and reduce waste, such record using the Global operations in 18 countries. as non-ferrous secondary We recognise the Reporting Initiative as a Nearly forty percent of our separation plants, cable importance of partnership guideline. We have also non-executive directors are granulators and upgrades to and collaboration for begun to adopt the Task women, and this year, Sims material recovery plants, enable driving positive change and Force for Climate-related added two women to it’s 25% the Company to deliver on its innovation. One company Financial Disclosures (TCFD) leadership team, increasing female executives purpose and generate financial alone cannot provide the recommendations to more the percentage of female returns for its shareholders. long-term solutions that will closely track and disclose executives from nine to In FY19, these investments enable a society to overcome our climate-related risks and 25 percent. We still need to Our approach to hiring is provided A$27 million EBIT. its challenges. opportunities. There is much improve our gender balance, fair, our policies and working more work to be done, but and the Board and executive environment result in all Similarly, the e-recycling In FY18, the Group joined we believe this is the right leadership team remain employees feeling welcome, business continues to the World Business step to take during an exciting focused on achieving this and our remuneration is equal. collaborate with clients to Council for Sustainable year when we announced our objective across the entire provide innovative and Development (WBCSD), and On behalf of my fellow new purpose and strategic workforce while creating a secure recycling and recovery it recently joined the steering directors, I thank all of our plan. A year of transformation workplace that fosters diversity solutions. Recycling the cloud committee for the Invest NYC employees for their dedication and opportunity. in the broadest sense. is an excellent example of Sustainable Development and efforts in creating a safer Sims’ ability to increase Goal (SDG) Initiative. Growing our Our purpose will enable us and more sustainable future revenue and profitability, This two-year project, led diverse team to attract talented employees over the past year. while working toward realizing by NYU Stern Center for with the skills necessary The Board recognises the a world without waste. Sustainable Business, aims to develop and implement value of diversity – both in to create a more sustainable, sustainable solutions. terms of background and inclusive and resilient New Moreover, we will continue experience – for achieving York City. We will work with to work hard to ensure our Sims has a strong Sims’ purpose. A diverse other sustainability leaders to workplaces are appealing Geoff Brunsdon workforce is essential for history of innovation, develop new approaches and to every current and Chairman developing the innovative and and we will continue deliver waste management future employee. creative solutions necessary to improve the quality solutions that contribute to drive a profitable and toward a safer and more of our processes. sustainable future. sustainable world.
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About Us CEO’s Message Alistair Field
This past fiscal year, we introduced the Sims purpose, create a world without waste to preserve our planet, and it marked a pivotal moment in our company’s history and future. Our purpose clearly articulates our commitment to sustainability, as well as outlines a distinct operating philosophy that reflects who Sims is today and where we would like to be in the future.
We also announced key I take every safety incident business growth strategies very seriously, and I will that will strengthen our We are looking to ensure that everyone at Sims position in the circular deliver value to our continues to place a great economy by investing in stakeholders by deal of importance on safety. innovative technologies that doing what is good Each employee is committed will allow us to extract more to ensuring that we continue value from our inputs. for our planet, as well to provide a safe working as what is good for environment for all employees While we have made great our business. and visitors. The loss of our strides during FY19, we two colleagues has galvanised are not yet where we want the executive leadership team or need to be. It pains me around improving our safety greatly to share that we performance, and we are in lost two employees, David the process of implementing Luther and Daniel Dyeming, a large-scale, global safety this past year. My deepest continuous improvement plan condolences go out to their to determine the root cause families, friends and loved of these incidents so that we ones. We have operated for can get back to the strong almost a decade without a focus on safety that we are fatality, and excellent safety accustomed to. records like that require a continued focus on identifying and managing risks.
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About Us
CEO’s Message continued
As with safety, sustainability This past April, we announced We understand our role in Sims is committed to is very important to all of us at the Group’s strategic plan achieving circularity, and furthering the vision set Sims. It is at the core of our to drive growth through we consistently look for forth by the United Nations At Sims, we create long-term business strategy, especially FY25 and the investments complimentary technologies Sustainable Development value by providing secure and as we look to rapidly adapt we’ve made, specifically that will allow us to extract Goals (UN SDGs). We are sustainable management of to, and be ready for, the in technology, to support more value from resources. ready, willing and able to be resources. While the concept demands and opportunities this strategy for the long- To amplify our positive part of the change, and I am of the circular economy is not brought by a fast changing term. With purpose at the impact, we will collaborate proud to lead Sims during this world. The future is now; we foundation, this type of with our extended value stage of the Group’s history. new, the drive to make it the cannot leave it up to another future-proofing allows us chain to advance the skills standard business model is. Our employees have started generation of leaders to solve to create alignment among and capabilities needed taking steps to ensure that the challenges that face our each of our business units, to address this global we can be successful on world, such as climate change strengthen our brand, and challenge. Our alliance with this journey, and I am very and the circular economy, grow by creating shared industry bodies, such as the appreciative of their hard work any longer. The executive value for our shareholders, World Business Council for and dedication during FY19. leadership team and I are employees, communities and Sustainable Development, I know that our work is not incorporating the Sims the broader society. and the NYU Stern Center done, because sustainability purpose into our growth for Sustainable Business, At Sims, we create long-term requires a mindset change and capital management enables us to connect with value by providing secure and to drive this cultural shift. strategies so that we can other businesses that are also sustainable management of As we aspire to be a force establish the blueprint for on a journey to sustainability resources. While the concept for change, my team and the future: build long-term and circularity. of the circular economy is I will continue to drive this value, operate sustainably not new, the drive to make it philosophy throughout and grow profitably. the standard business model our organisation. is. As a key enabler of the circular economy, we are looking to deliver value to our stakeholders by doing what is good for our planet, as well as what is good for our business. Alistair Field CEO
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The Sims Purpose Create a world without waste to preserve our planet
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The Sims Purpose Trends Shaping Our World
Our society is facing crucial challenges as it navigates an increasingly uncertain and complex world. There’s wide recognition that a sustainable future requires wholesale system change with transformation to a circular economy at its heart.
Changing consumption Similarly, the World Economic patterns Forum states that only 20 Changing percent of the world’s e-waste As the global population 50m consumption is currently being formally continues to grow, so do recycled and that, if nothing is tonnes of e-waste patterns consumption patterns. done, e-waste is expected to is generated globally According to the United Nations more than double by 2050.5 a year4 (UN), in 1990 the average Resource person consumed 8.1 tonnes Resource scarcity Our changing consumption scarcity of natural resources to meet their needs and by 2015 patterns are inextricably it rose to 12 tonnes.3 linked to increasingly scarce Innovation, natural resources. In 2017, technology Central to this change for material consumption reached 190bn and digitisation Sims is the growing demand 92.1 billion tonnes and, tonnes of natural for electronic goods. While without urgent action to resources is predicted technology has the power to minimise our use of materials, to be consumed transforms lives and brings it is projected to hit 190 billion globally by 20606 huge benefits, the disposal tonnes by 2060.6 Climate of electronic goods presents change society with an urgent challenge. The UN calls this Circular challenge a “tsunami of economy e-waste” and predicts that e-waste is the fastest-growing
waste stream in the world – 3 https://sustainabledevelopment.un.org/sdg12 estimated at 50 million 4 http://www3.weforum.org/docs/WEF_A_New_Circular_Vision_for_Electronics.pdf tonnes annually.4 5 http://www3.weforum.org/docs/WEF_A_New_Circular_Vision_for_Electronics.pdf 6 https://sustainabledevelopment.un.org/sdg12
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The Sims Purpose
Trends Shaping Our World continued
Many of the products we use The material value of this At Sims, our role extends far every day – from washing waste is estimated to be beyond managing our own machines to cars – contain around $62.5 billion USD emissions and climate risks, valuable raw materials that annually. Using these as implementing circular when recycled, reduce our ‘waste resources’ from used economy solutions is central reliance on raw materials. electronics within a circular to achieving the goals of the However, according to economy is also a key Paris Climate Agreement. European Union policy opportunity to reduce 17% Indeed, the IPCC states that platform EURACTIV, only 17 carbon‑dioxide emissions of appliances in the a more circular economy 8 percent of appliances in the from mining raw materials. EU end up in waste could cut industrial emissions EU end up in waste bins and in the EU by more than 50% two-thirds are not traced, so Climate change bins and two-thirds by 2050.10 7 we don’t know how they are Climate change is the are not traced 7 Circular economy treated or reused, if at all. challenge of our time. For Sims, this leakage of The latest report from the As defined by the Ellen valuable resources to landfill Intergovernmental Panel MacArthur Foundation, the represents a natural on Climate Change (IPCC) circular economy is based on opportunity for our company. states that global warming is the principles of designing out likely to reach 1.5°C between US waste and pollution, keeping E-waste provides a stark example of the opportunity to 2030 and 2052 if it continues products and materials in 9 capture valuable resources. at the current rate. Curbing $62.5bn use for as long as possible In its New Circular Vision for and adapting to climate and regenerating natural change will require drastic and of e-waste material systems. Unlike the current Electronics, the World value globally8 Economic Forum states that fundamental action beyond linear system where we take e-waste can contain precious business as usual. resources to make products, metals estimated to be 40-50 use those products and then times richer than mined ores. throw them away – it’s a shift in the way we design, produce, and use them within our planet’s limited resources, 7 https://en.euractiv.eu/wp-content/uploads/sites/2/special-report/EURACTIV-Special- to create a thriving economy. Report-Metals-in-the-circular-economy.pdf 8 http://www3.weforum.org/docs/WEF_A_New_Circular_Vision_for_Electronics.pdf 9 http://report.ipcc.ch/sr15/pdf/sr15_spm_final.pdf 10 https://unfccc.int/news/circular-economy-is-crucial-to-paris-goals-study 13 About Us The Sims Managing Our About Purpose Sustainability Performance This Report
The Sims Purpose
Trends Shaping Our World continued
Research by the Ellen Innovation, technology However, cloud servers have A Joint Research Centre of MacArthur Foundation and digitisation a typical lifespan of just three the European Commission suggests that shifting to a years according to World report on the use of waste- circular model in Europe for The rapid pace of technological Economic Forum. to-energy technologies found products like mobile phones change is creating new that the efficiency of waste- This makes data centre and washing machines markets and business based energy generation in equipment a prime target could deliver savings of up to opportunities. Investment in Europe could be increased for the circular economy, as $630 billion USD per year.11 cloud infrastructure continues by more than 25 percent stripped-down components For Sims, the shift towards to grow unabated. Cloud using currently available can be resold, preventing a more circular economy is computing and the ‘Internet of technologies.13 At Sims, valuable resources from at the heart of our heritage, Things’ hold the potential to unlocking the potential of ending up in landfills. our purpose and our strategy deliver significant benefits for innovation, technology and for the future. resource efficiency and waste Blockchain technology allows digitisation is a key component reduction, as products and data tracking of materials in addressing the challenges services reduce the reliance and activities across the and opportunities ahead of us. on equipment and hardware.12 value chain. By increasing transparency and traceability of waste streams using blockchain, we could see the emergence of a new age of waste management US $630bn accountability. At the other end annual potential cost savings by of the chain, turning waste with no other possible use shifting to a circular economy across into energy and feedstocks, Europe for products such as mobile could provide fuel to support phones and washing machines11 the circular economy.
11 https://www.ellenmacarthurfoundation.org/explore/the-circular-economy-in-detail 12 http://www3.weforum.org/docs/WEF_A_New_Circular_Vision_for_Electronics.pdf 13 https://ec.europa.eu/jrc/en/news/turning-waste-energy-fuel-circular-economy 14 About Us The Sims Managing Our About Purpose Sustainability Performance This Report
The Sims Purpose Sims and The Circular Economy
Our purpose is to create a world without waste to preserve our planet. Sims enables the circular economy
We’re on a mission to become Transitioning to a circular We’re working to drive faster a global leader in the circular economy is about much more progress toward circularity economy – keeping resources than just reducing the waste and we are constantly looking Resources in use as long as possible and inherent in the linear economy. for opportunities to partner extracting the maximum value It’s about sustainable growth with others who want to do from those resources. At Sims, that creates economic the same. our global presence means opportunities, environmental we’re uniquely positioned to and social benefits and Materials refining/ help lead the transformation increases business resilience. preparation Recycle that’s so urgently needed. This transition requires a systemic shift that closes, optimises and values resource loops across the value chain. Assembly/product manufacturing
Parts LMS harvesting Landfill A circular economy is a system in which all Gas to energy / materials and components are kept at their Distribution energy recovery highest value at all times, and waste is designed Did you know? out of the system. It can easily be thought of as the opposite of today’s linear economy. It can For every tonne Refurbish be achieved through different business models of steel recycled, including product as a service, sharing of assets, carbon emissions life extension and finally recycling. are reduced by User Ellen MacArthur Foundation15 tonnes16 Recover and 2.1 manage 15 http://www3.weforum.org/docs/WEF_A_New_Circular_Vision_for_Electronics.pdf 16 http://www.kesab.asn.au/simsmm/ 15 About Us The Sims Managing Our About Purpose Sustainability Performance This Report
The Sims Purpose How Sims Creates Value Sustainable growth creates economic opportunities, environmental and social benefits and increases business resilience. This transition requires a systemic shift that closes, optimises and values resource loops across the value chain.
What we rely on What we do The value we create
Natural capital Natural capital • Diverting resources • Metal scrap bought from from landfills, reducing individuals through to large demand for virgin companies and municipalities materials including Metal Recycling E-Recycling GHG emissions • E-waste take back programmes reductions and and collaborations with brands Recovering, processing and E-waste recycling and IT asset energy savings selling steel, iron, copper and disposition (ITAD) for regional and • Curbside recycling including aluminium to manufacturers global businesses, data centers • 9.8m tonnes of metal, glass, plastic and paper and electronic Original Equipment secondary metals recycled annually Manufacturer (OEMs) Financial capital • 500k tonnes of • Delivering Manufactured capital municipal curbside A $6.6bn sales recycling processed • A$1.3bn property, plant and revenue, A$230m equipment assets • 400k tonnes of underlying EBIT e-waste recovered and shareholder returns Human capital • 5,000 employees across 250 facilitates all over the world
Financial capital Human capital Social capital • Attracting long-term investment • Providing fair • Advancing the remuneration, circular economy Municipal Recycling Energy Recovery and developing a safe, and supporting local Social capital Solutions for curbside Renewable Energy healthy, engaged and economies by having diverse workforce nearly all of our recycling in major cities • Strategic relationships with Utilising auto shredder globally including spending done with communities, customers, industry residue (ASR) and landfill hiring from the local local suppliers associations, government, gases to create energy community suppliers and other specialists
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The Sims Purpose ? Did you know? When one tonne of The Circular Economy aluminium is recycled, carbon emissions And Climate Change are reduced by a staggering We’re working to drive faster progress toward circularity and constantly looking for opportunities to partner with others who want to do the same. 7.9 tonnes18
Collaborating with Case study Nespresso for Zero Waste This is an excellent example of how the public and private In March 2019, Nespresso, the City of New sectors can collaborate to York Department of Sanitation (DSNY) and Sims Municipal Recycling (SMR) announced a develop solutions that have $1.2 million commitment to increase the recovery broad environmental impact of aluminium coffee capsules through New York and create shared value. City’s curbside recycling programme. The funding New Yorkers are familiar from Nespresso will assist SMR in installing with recycling aluminium cans, technology to better sort and capture lightweight and we want to encourage aluminium, including foil and other mixed metals, which makes it possible for these items to be people to also recycle a turned into new products and support New York wider array of aluminium City’s Zero Waste initiative. A key component of products that they use on the partnership will be to encourage New York a regular basis. City residents to recycle Nespresso capsules, as well as the 43,000 tonnes of aluminium foil Guillaume Le Cunff, and other mixed metals that currently end up in President and CEO of Nespresso 17 a landfill each year. USA via joint press release
Read more online: www.simsmm.com
17 https://www.simsrecycling.com/press-releases/nespresso-commits-1-2-million-to-better- enable-the-recycling-of-aluminum-coffee-capsules-through-new-york-city-curbside-program/ 18 http://www.kesab.asn.au/simsmm/
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The Sims Purpose Our Sustainability Strategy
The future is now, and the need for action rests in our hands. As we deliver on our purpose, the challenges facing our society present us with abundant opportunities to advance the circular economy, to create shared value by partnering for change, and to grow our business.
We share the vision set It’s an exciting time for Sims, Our new sustainability forward by the United Nations and we are in the process strategy will focus on three Sustainable Development of developing our next set of outcomes including closing We close resource loops by enabling society to restore, Goals (UN SDGs), and we clear, actionable, outcome- the loop, raising the bar Close the loop: repair, refurbish, remanufacture and recycle materials. know we have a clear role driven sustainability goals and amplifying our impact. The foundation Across our business divisions, we collect, sort and pre- to play in helping achieve to evolve our business and process valuable resources to keep them in the loop We will expand more on of our business it. We are committed to maximise our positive impact. at their highest value. our new Sustainability supporting progress on the We want to be the best, Strategy and framework UN SDGs with particular safest and most responsible focus on the four goals that throughout FY20. recycling and recovery We’re investing in innovative technologies that allow we believe we can make the company in the world. us to extract more value from inputs, re-think waste greatest contribution: and enable the circular economy. Optimising our We constantly seek new Optimise: ways to broaden our processes can increase metal yields and differentiate Raising our products. We’re expanding into new business participation in society by the bar forging a path toward a adjacencies, such as recovering energy from waste, more circular economy. and new markets, such as recycling the cloud and And we’re determined to be converting landfill gas to energy. a responsible partner in the communities in which we The shift to a circular economy will require innovative operate as we strive to serve business models that either replace or improve existing ones, or spark new opportunities and ideas. as a beacon for industry Value: change globally. We collaborate with our customers to challenge Amplifying conventional models of product design, manufacturing, our impact distribution and, ultimately, reuse and recycling. We see great potential to create shared value by partnering for change across the value chain.
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Managing Sustainability
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Managing Sustainability Governance
Trust in our business depends on robust governance and processes that Our Core Values address the most important sustainability impacts and opportunities for our stakeholders and our business. We’ve taken a deep dive into these issues to evolve and strengthen how we manage sustainability. Safety Transparency Safety will always be our We ensure a sense of first priority. We believe appropriate transparency that all incidents are in everything we do. Sims’ Board of Directors and They also provide strategic You can find Sims Metal preventable and we executive leadership team guidance, set key objectives, Management’s Board are committed to a are committed to operating monitor performance and and Committee Charters, goal of zero injuries. the business in an ethical ensure that Sims’ internal General Codes and Policies, manner consistent with control, risk management including the Safety, Heath, the highest standards of and reporting procedures Environment and Community corporate governance. are adequate and effective, Policies, online. You can also and they name the CEO read more about our approach Integrity Excellence Our Board is responsible who will manage the to responsible business on We conduct all business We commit to excellence for establishing sound overall organisation. page 51 of this report. with integrity and in everything we do and corporate governance practices that ensures we This is fundamental to The Board met nine times adhere to the highest champion continuous and sharing uphold our core values of fostering investor confidence during FY19. Four of those standard of ethical development of best practices across safety, integrity, respect, and driving higher value for meetings extended over three business conduct. the Company. transparency, excellence shareholders through prudent days. The meetings involved and social responsibility. risk management and a strategy review and extensive culture that encourages ethical interaction with members conduct, accountability and of the executive leadership Respect Social Responsibility sound business practices. team, as well as the regular oversight exercised by the We will treat each We aim to be the world’s Board through its meetings. other, our customers, safest and most visitors and community responsible recycling members with respect and recovery company. and dignity.
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Managing Sustainability
Governance continued
Governance committees Audit Committee A Sims Group Board The Board is supported by Assists the Board in fulfilling its corporate governance Board Independent/non-independent Committee a number of committees. and oversight responsibilities in relation to accounting Member executive director membership We have a very engaged and and financial reporting, internal control structure, Chairman and independent Risk Rem internal and external audit functions, and compliance Geoffrey N Brunsdon N A committed Board of Directors non-executive director which results in very high with relevant legal and regulatory requirements in attendance and participation the Committee’s area of responsibility. Alistair Field Risk Executive Officer N S of Board members in all Risk Committee Risk committee meetings. Mike Kane Independent S Assists the Board in fulfilling its governance and non-executive director oversight responsibilities in relation to Enterprise Hiroyuki Kato Non-independent Risk Management. S A non-executive director Nomination/Governance Committee N Georgia Nelson Independent Ensures the Board comprises individuals who Risk Rem A non-executive director are best able to discharge the responsibilities of Directors and represent the interests of the Independent Deborah O’Toole Risk Rem A Company and its shareholders. non-executive director
Rem Independent Remuneration Committee Heather Ridout Risk N S Rem non-executive director Supports and advises the Board on the implementation and maintenance of coherent, fair James T Thompson Independent N S Rem and responsible remuneration policies which enable non-executive director it to attract and retain Executives and Directors who will create value for shareholders of the Company. Key:
Safety, Health, Environment, Community S Risk Committee Nomination/ SHECS Committee Risk N S and Sustainability (SHECS) Committee (5 members) Governance (5 members) Oversees the Company’s SHECS policies, programs Committee Remuneration Rem (4 members) Chairperson and practices that affect, or could affect, the Company’s Committee employees, customers, stakeholders and neighbouring (5 members) Audit Committee A communities, and the committee assists the Board in (4 members) fulfilling and discharging its SHECS obligations.
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Managing Sustainability
Governance continued
Environment, Social Board of Directors SHECS Committee Risk Committee and Governance Responsible for setting policies, First stop for ESG related topics. It reviews ESG topics that need escalation accountability strategy and governance of ESG. strategy and performance. are also reviewed here. Risk and opportunities related to environment, social and governance (ESG) topics are identified, reviewed and managed by broad consultation CEO supported by open Ultimately responsible for the management of the communication and feedback business ESG performance. mechanisms to ensure continuous improvement. Executive Leadership Team In 2019, we made a very All ELT members can raise risks and opportunities intentional decision to Management Team related to ESG topics with the Board and all of them are responsible for ESG performance. They provide change our structure to Responsible for implementing strategy, monitoring relevant information from their business/department to make sustainability a performance, identifying and evaluating ESG risk develop strategy, define targets and set tracking and separate function, distinct and opportunities, and communicating to ELT. reporting on performance. The ELT team acts as the from its previous position primary policy approvals body via close consultation within environment, Group Business Divisions with the Board. health and safety (EH&S). VP of SHECS: Responsible SHECS Directors are We appointed our first for working with business responsible for aligning Chief Risk and Business Presidents Director of Sustainability SHECS directors and regional business units divisions and Compliance Officer Responsible for adopting in September, who reports senior management to provide functions to the Group’s ESG (CRCO) the sustainability framework, a framework of company strategy. They work closely accountable for identifying. directly to the CRCO. Responsible for including the standards, training, data with operations to identify and disclosing, and mitigating This decision reflects our most material topics in the systems and tools to guide advise on strategic direction the material ESG risks within quarterly Board’s agenda, commitment to addressing our safe operations. and policy for the businesses. their respective business that for setting the sustainability the needs and opportunities may impact the business Director of sustainability: framework and working with strategy and for including that continue to arise in a Responsible for working business leaders to ensure these in their business plans fast changing landscape. across businesses divisions commitment and accountability and updates at ELT meetings and providing a sustainability on implementation and We know that our business and Board presentations. framework for consistent due diligence. does well, but we want to implementation and progress do even better at proactively of Sims’ Strategy. driving the transition to a circular economy. 22 About Us The Sims Managing Our About Purpose Sustainability Performance This Report
Managing Sustainability Materiality
It is crucial we use our understanding of the evolving global sustainability landscape to shape our strategy, manage our impacts and increase transparency.
In 2019, we carried out a new Approach and Stakeholders were asked materiality assessment to methodology about their perceptions of identify the issues that matter Sims and its sustainability most to our business and We engaged third-party impacts, areas of challenge our stakeholders. We used sustainability experts and opportunity. We tested the results as a foundation to to conduct a materiality a range of sustainability shape our new sustainability assessment on a range of topics with each stakeholder strategy and to define our social, economic, governance and asked them to rank material topics and boundaries and environmental topics. the relative importance of for reporting. We identified relevant each topic. stakeholders, including our Board of Directors, executive The Board then scored each leadership team, investors, topic relative to its impact on NGOs, trade associations the business – positive and and subject matter experts, negative – using a range and engaged them through of criteria. a series of in-depth interviews We used the outcomes of and workshops. this refining and prioritisation process to identify topics that should be elevated in our strategy and reporting.
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Managing Sustainability
Our materiality process Step 3: Step 4: Step 1: Step 2: Stakeholder Validation Identification Prioritisation engagement and review We developed an initial The list was grouped and clustered into 37 key Topics and criteria were The outcomes of the list of more than 290 topics, which were signed off by the CRCO, for tested with a range of process were validated topics based on a desktop internal and external testing. This testing was to external stakeholders and reviewed by the review of: prioritise the topics according to their importance to understand their CRCO, CEO and the • legislation to stakeholders and the impact on Sims (both perceived importance. executive leadership team. positive and negative). • industry trends Stakeholders At key stages throughout • megatrends A set of criteria was developed to measure included investors, the process, Sims’ • UN SDGs importance to stakeholders including: Non-Governmental previous materiality work considerations • relevance to the organisation’s Organisations (NGO), and qualitative stakeholder • peer review ongoing concerns customers, trade feedback were referenced • media review • importance to stakeholder relationships associations and to ensure the results thought‑leaders were a reasonable • Sims’ business • relevance to the organisation’s specifically chosen reflection of the Sims strategy risk register sustainability priorities to provide a range world, the challenges reporting and prior • and relevance of enabling judgements to be of perspectives. and the opportunities. materiality assessment. formed about Sims. The impact of the topics The outcomes of the The list was informed by A set of criteria was also developed to measure on Sims was tested during materiality assessment in-depth interviews impact, including factors, such as: with our: a workshop with Board have been used to shape • contribution to the purpose members and combined the new sustainability • CEO • sustainability ambitions and business strategy with data collected strategy to be launched • Chairman of the Board • potential financial impact (including defined on the importance to in 2020. They were also • Sims’ executive financial thresholds) external stakeholders. reviewed against the leadership team. • potential brand and reputation impact business strategy for alignment and used to • potential impact on stakeholder relationships inform this reporting cycle. • potential for non-compliance or fines • potential impact on licence to operate and impact on long-term business viability and continuity.
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Managing Sustainability
Our material topics
Materiality matrix
Higher Key:
Recycling Advance the infrastructure Hazardous or circular economy Climate radioactive Climate change Circular change risks Noise, dust and materials Quality of opportunities economy other local direct inbound materials Quality of inbound materials Sustainability Regulatory Human rights, environmental Transportation accidents governance compliance labour rights, and impacts labour relations Bribery Economic performance Technological Process and corruption E-waste Health innovation innovation Diversity and Ethical business and safety Water disposal Waste from operations inclusion and equality Responsible (effluents) sent to landfill Economic Respect for people sourcing Community Quality of metal performance Renewable engagement product outputs Health and safety Transport fuel GHG and alternative Waste consumption emissions Anti-competitive energy generation management practices Addressing climate change Privacy Staff recruitment, and security retention, development, Being a good neighbor and training Geopolitical Potential Resource disruption for fires Regulatory availability Water Carbon pricing and compliance consumption Ferrous metal Thriving workforce price volatility Importance to our stakeholders Increased cost of Water management and availability of disposal options for ASR waste Digitisation and innovation
Lower Impact on our business Higher
25 About Us The Sims Managing Our About Purpose Sustainability Performance This Report
Managing Sustainability Task Force on Climate-related Financial Disclosures
Sims enables the circular economy. By diverting valuable resources away from landfill, we bring benefits to our value chain, such as mitigating GHG emissions from landfills and reducing demand for virgin raw materials. But we want to do more. As part of Sims’ transformation, we are committing to adopt the Task Force on Climate-related Financial Disclosures recommendations. We are at the early stages of developing a systematic and intentional approach to addressing climate change.
During the summer of 2019, Governance Risk mitigation plans and In addition to the TCFD During the second we hosted an intern from We take a global strategic opportunity prioritisation list, the key risks we have half of FY19, Sims the Environmental Defense view of risk management are developed based on a identified for the short and experienced nearly a Fund (EDF) to calculate our and drill down to explore detailed analysis of each risk. medium-term centre around carbon footprint and help us the concrete risks that could Action is taken to address any the potential for increased million dollar negative better understand the areas impact our business, including risks that exceed Sims’ risk frequency and more extreme impact through its of major impact. This project climate change. With support tolerance level and to act on weather events impacting: supply chain due to made it clear that we need to and input of the executive new opportunities. For more • health and safety heavy flooding in some improve our data collection leadership team, our CRCO details, please review our issues for employees southern states in the systems, which will be a focus is responsible for bringing Risk Management Policy. operating on sites U.S. which made it of FY20. It also enabled us to the company’s risk mapping, Strategy (extreme temperatures); better understand our Scope 3 including those related to difficult to move material We recognise that climate emissions, beyond our Scope climate change, to the Board • inability to maintain standard and lowered intake change may have a 1 and 2 emissions. The result of Directors and the Board’s operational hours at facilities volumes. While not all meaningful impact on the of this work will guide our Risk Committee at least (extreme temperatures); financial performance of floods are due to climate future approach. every quarter. the Group over time, and • docks, material handling change, this cost is a The Enterprise Risk we have begun the process and the transportation clear indicator of the Management (ERM) of identifying key risks and of products (intense rain increasing financial framework gives business developing actions to mitigate and wind); exposure to extreme units ownership of identifying their impact. We are starting • access to a reliable supply weather patterns. and managing risks. to use the guidance provided of electricity (extended heat It is supported and reinforced by the TCFD and their list waves); and through discussion and of climate-related risks appropriate action by the and opportunities which is • reliable operation of critical Group and Board levels. available on page 27. data storage sites (flooding, extended heat waves).
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Managing Sustainability
The climate-related impacts matrix is an overview of the identified potential climate-related risks and opportunities and their probable financial impact on Sims over the short-, medium- and long-term.
Climate-Related Opportunities Horizon Resource Efficiency Energy Source Products and Services Markets Resilience
Short term Medium term Long term
Climate-Related Risks Years <5 5-10 10+ Use of more efficient mode of transport Use of more efficient production and distribution processes Use of the circular economy as the standard business model Use of recycling Use of lower-emissions sources of energy Use of new technologies Participation in carbon market Shift toward decentralised energy generation Development and/ or expansion of low emissions goods and services Ability to diversify business activities Shift in consumer preferences Access to new markets Use of public-sector incentives Participation in renewable energy programme and adoption of energy efficiency measures Resource substitutes/diversification
Policy and Legal Increased pricing of GHG emission Enhanced emissions-reporting obligations Mandates on and regulation of existing products and services Exposure to litigation Technology Substitution of existing products and services with lower emissions options Unsuccessful investment in new technologies Costs to transition to lower emissions technology Market
Transition Risks Transition Changing customer behaviour Uncertainty in market signals Increased cost of raw materials Reputation Shifts in consumer preference Stigmatisation of sector Increased stakholder concern or negative stakeholder feedback Acute Increased severity of extreme weather events such as cyclones and floods Extreme temperatures limiting operational hours Extreme temperatures affecting health and safety of employees Intense rain and wind limiting product transportation and handling, docks Chronic Changes in precipitation patterns and extreme variability in weather patterns
Physical Risks Rising mean temperatures Rising sea levels Access to reliable supply of electricity Reliable operation of critical data storage
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Managing Sustainability
TCFD continued
Risk management The purpose is to identify Metrics and targets Risk is present in everything early warning signs of As we refine the measurement we do. We operate in a risks and opportunities to Board of our carbon footprint and complex global environment effectively manage key Delegates its risk oversight responsibilities to the Risk Committee develop our next targets, where opportunities come with risks and opportunities and general authority to the CEO to manage the business we will develop climate associated risks. It is important to support achieving our change-related targets to to proactively identify, assess strategy and objectives. support GHG emissions and manage the key areas Risk Committee Audit Committee mitigation across our own We identity climate-related of risk and of potential loss of Responsible for Responsible for the operations and to intentionally risks in many ways. At a opportunity, so that we can the Risk Oversight internal control structure influence our value chain. global level, we use a range mitigate the risks. Sims’ ERM In the meantime, all capital of inputs including the World framework is designed to expenditure (capex) approvals Economic Forum’s Global support each business unit in over a $5 million threshold Risk Review. We analyse the effective management of value require consideration of market and industry risk. It enables a consistent CEO the impact of climate change information and global risk approach to risk identification, Ultimately responsible for as standard practice as we trends to assess current management and monitoring the management of the business implement our energy and and emerging risks and through the use of a global risk and its risks climate change policy. opportunities facing the taxonomy. Clear definitions Internal Audit Company. We also explore of roles and responsibilities Provides global megatrends to keep are established through the Independent abreast of the fast pace risk governance structure. It is Assurance of change and anticipate Business Units Risk Function intended to enable consistent potential impacts on Sims. and Group Oversight, and frequent communication Divisions advisory, and between the accountable Own and monitoring role in management, the executive manage risks managing risks leadership team and the Board.
The three lines of Defense:
First Line Second Line Third Line
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Our Performance
29 About Us The Sims Managing Our About Purpose Sustainability Performance This Report
Our Performance Environmental Environmental management
Preserving the environment is at the heart of our business model; in a resource-constrained world. We must continually reduce the impact of our operations to mitigate climate change, optimise the use of natural resources, minimise waste and prevent pollution.
Management The natural environment approach In carrying out our business A Greenhouse Grows and making purchasing Case Our environmental policy decisions, we take into study in Dumfries, UK sets out our commitment account potentially harmful Sustainability comes in many forms, to conducting our business impacts on the natural and for the employees at Sims Recycling in a manner that protects environment: soil, water, air Solutions in Scotland it came in the form the environment, supports and biodiversity. We evaluate of growing their own fruit and vegetables ecologically sound and operational activities for – an idea sparked by attending a sustainable use of resources, environmental risk and put presentation on the Sims purpose. minimises waste and adequate safeguards in place The greenhouse is now a central part prevents pollution. to prevent harm before we of the site. Employees tend to the garden commence our activities. on a daily basis before their shift or during breaks. Recycled seating allows more employees to take an interest in the poly-tunnel greenhouse and share in the team spirit. The produce they grow is shared between all site employees and their families. This small project has allowed Dumfries to create even better employee engagement and engender stronger ties with the local community through the donation of some of the fruits and vegetables.
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Our Performance
Environmental continued
Industrial processes These audits are in addition Performance We strive to continuously to general and specific FY19 improve our industrial inspections performed Due to data collection processes to progressively by each site’s operations limitations, we previously used reduce the amount of water management and supervision, extrapolation factors to provide and other natural resources as well as those carried out Sims’ overall environmental 37.4 127.1 642.6 we consume, and the waste by the SHECS organisation operational performance using our top 24 sites (our Scope 1 GHG Scope 2 GHG Electricity our activities generate. to review performance, drive as CO E as CO E Consumption continuous improvement shredder sites) as the base 2 2 Please refer to our ESG and help identify and record for our calculations. Due to (thousand MT) (thousand MT) (thousand GJ) governance section to hazards for corrective action. the higher level of operational see the highest level of activity and material volumes management structure that In FY19, we completed four managed at these sites as supports the operational in-depth internal audits, over compared to our other yards, SHECS functions which 3,200 general site inspections it was reasonable to apply 533.3 1.2 0.37 includes SHECS managers and over 2,400 monthly safety the Pareto principle. Fuel Consumption ASR Produced Water Intake and coordinators. standards audits. However, due to data quality (thousand GJ) (million MT) (million m3) Internal audits provide issues, in FY19 we decided assurance and reinforcement to report the data for the of day-to-day compliance top 24 sites only. We are Metric FY18 with global SHECS standards working to create a robust Scope 1 GHG as CO e (thousand MT) 36.8 and best practices. These data collection and quality 2 are performed with the review process to more Scope 2 GHG as CO2e (thousand MT) 126.7 participation of a SHECS accurately represent our Electricity Consumption (thousand GJ) 640.9 director from another footprint in FY20. business unit, who lends Fuel Consumption (million GJ) 525.8 their expertise to the audit. The constitution of such ASR Produced (million MT) 1.2 audit teams allow for Water Intake (million m3) 0.39 robust audits that leverage 3,200 the rigorous audit approach site inspections with the deep expertise of in 2019 our SHECS organisation.
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Our Performance Energy and Greenhouse Gas Emissions
Despite growing calls for action, global carbon emissions continue to rise. Stabilising temperature increase to less than 2°C19 will require widespread change, and the business must play a crucial role.
Management approach Sims was one of the first organisations to participate in We need energy to support Converting to all-electric the Carbon Disclosure Project Case the circular economy, and we (CDP), and 2019 was our study yard equipment are committed to optimising 14th year of participation. our energy footprint and the Our site in Richmond, California is the associated carbon profile of We strive to achieve levels first facility in North America to obtain an our day-to-day operations. of performance that exceed all-electric crane. The local team replaced We recognise that managing basic compliance, and we six pieces of aging diesel equipment with our energy usage and are working on establishing five pieces of more efficient equipment reducing carbon emissions is the TCFD recommendations (material handlers, excavator and loader) fundamental to our viability, (see page 27). FY20 will and an all-electric pedestal crane. prosperity and responsibility be a year of transformation The improvements were made possible as a good corporate citizen. as we develop a new set with a grant from the Carl Moyer Memorial of sustainability goals, as In the past 12 months, there Air Quality Attainment Program which well as improve our data covered 43 percent of the total cost. has been no material exposure collection process. to the risk of breaches Total diesel savings are estimated at of environmental licence As part of our approach, we approximately 41,200 gallons per year conditions or legislation. will continue to target energy and emissions have been reduced tenfold. efficiency opportunities in In addition, our San Jose site received At a minimum, we comply our production processes the first electric vehicle in North America. with all applicable energy and transportation activities. It is fully powered by a lithium-ion battery and carbon emissions laws, We seek to transition to (like a Tesla), road-legal, electric yard regulations and standards, renewable energy and lower tractor that was partially funded through and the monitoring and carbon energy sources to the California Air Resource Board. reporting rules of the countries transform our carbon profile. in which we operate. 19 Relative to pre-industrial levels.
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Our Performance
Energy and Greenhouse Gas Emissions continued
Our performance Carbon emissions Case Total Group scope 1 study and scope 2 CO2 emissions for FY19 were 164.4 thousand MT. Our Scope 2 emissions were influenced by the increase of secondary separation 1,000 equipment installed in FY18 Solar panels installed to divert more valuable resources from landfills. In FY19, electricity accounted for 77 percent of emissions, followed by diesel at 22 percent, natural gas, with Generating It is a national leader in landfill LMS remains the largest With 41 carbon abatement LPG and petrol combined gas to renewable energy bioenergy generator of Large- projects accredited under the at less than one percent. renewable energy and an innovator in solar-on- Scale Generation Certificates Emission Reduction Fund, landfill technology. (LGCs) in Australia. Additionally, LMS has also been issued with Energy with LMS Energy LMS has three solar projects. more than 50 percent of all Our electricity consumption LMS once again achieved In 2001, Sims entered the The Company’s renewable Australian Carbon Credit Units in FY19 was 642.6 thousand strong results in FY19 and renewable energy market with energy hub at Albury was the (ACCUs) under the landfill gas gigajoules. We estimated that commissioned two new projects a strategic investment in LMS first large-scale solar farm on a methodologies. In FY19, 11 percent of the electricity in Victoria and Tasmania to Energy (LMS). Our investment landfill cap in Australia, and the LMS achieved an estimated we used was from renewable reach a total of 23 landfill gas- has grown into a 50 percent first electric vehicle charger to be 3.4 million tonnes (CO2e) of sources based on the grid to-energy projects in operation ownership of LMS, one of powered by landfill gas. carbon abatement across all mix of our suppliers or the across Australia. These projects Australia’s premier landfill gas- of its activities. equivalent to six percent generate over 400,000 megawatt LMS also constructed its first to-energy and solar renewable of our total energy use. hours of base-load renewable behind-the-meter project with energy companies. LMS entered Our business strategy is to electricity annually. 1,000 solar panels installed its 23rd year of business in FY19. lower our carbon footprint at the Sims facility in Gillman, globally year-over-year. South Australia.
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Our Performance Resource Management
Closing resource loops is our business, and we have to lead by example. We’re closing the loop on our own waste by improving our processes and investing in energy recovery technologies.
Management These non-recoverable Performance Metric Unit FY18 FY19 approach materials are expensive to process and dispose of. At the end of FY19, we ASR Waste Produced million MT 1.2 1.2 The waste we generate completed investments is primarily a result of They are strictly controlled in technology to allow the non‑recoverable materials through our quality production of twitch and – known as automotive control mechanisms and heavies from zorba and shredder residue (ASR) – purchasing structure on copper chops from insulated Case study from our metals business. incoming materials. copper wire across the ASR is an inherent waste To close our own loop, we countries where we operate. component of the products are investing in technologies The investment led to we purchase to mechanically to improve separation quality differentiated products and recycle. It represents of the inputs we receive and created optionality in both what is left after all viable energy recovery technologies geographic markets and recyclable materials have to extract the energetic customers. The first zorba been extracted. content of our ASR waste. separation and copper granulation plants installed Our input materials first go Sims produces 1.3 million are exceeding initial through a shredder and tonnes of ASR globally, which processing expectations. ferrous and non-ferrous represented a total cost of metals are separated. $100 million in FY19. SRS’ Nashville site began In some locations, the non- running a new plastic Extracting more value from inputs ferrous stream goes through separation process that Our Paulina site in Chicago built a new Materials Recovery Plant a secondary separation to separates market ready (MRP) in October 2018. It includes technology that enables us to extract additional value. plastic which can then pull wire and zorba from shredder waste for further processing, ASR is the non-metallic be used to close the loop increasing the overall recovery rate, saving costs for transporting residue left behind after our in the manufacturing of and landfilling waste and increasing sales. processing is complete. electronic components.
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Our Performance
Resource Management continued
Closing the loop Sims’ energy recovery plants This innovative technology on our waste will use Sims own ASR as a allows us to build long-term Case high-calorific-value resource value, while operating even study Typically around the world, of known properties, meaning more sustainably: ASR is treated as waste and it can be safely converted into • Closed system using it is disposed of in a landfill. energy or fuels. As an enabler the most advanced We’re closing our own loop of the circular economy, gasification technology; by investing in technology to we intend to build energy improve the separation quality recovery plants across the • No incineration or emissions of the inputs we receive and globe over the next 10 years produced directly from reduce our waste. We’ve to transform a minimum of gasification and no harmful invested A $125 million 75 percent of our ASR waste materials produced; over the past two years to streams, which are viable for • Production of syngas, fuels, maximise the amount of thermal treatment. We’ll also road base and metal; material we can recycle and explore emerging technologies we will continue to invest to to provide viable treatment of • Significant reduction of ensure we have extracted all the remaining waste stream material going to landfill ‘Otto’ – Nashville’s new plastic separation process viable recyclable material from to eliminate it completely. (1 million tonnes annually); In July, SRS’ Nashville site began This high level of cleanliness our waste streams. Our objective is to build and • One million tonnes of ASR running a new plastic separation ensures downstream processors operate our first plant in Aligned with our purpose, can be converted to 1,100 process, nicknamed Otto. The sink- can produce high-quality recycled Australia by June 2022. Sims is planning to expand its GWh of energy or converted float process separates different resins that can be used in new business offering to include to liquid fuels or gases; types of plastic based on density, electronics. The finely crushed the recycling of non-metallic which make some plastics float and material created in this process may residue from the automotive • Approximately 400 thousand others sink. We target the plastics also be used as ground cover for shredding process to generate less truck journeys globally that float (mostly polyolefins). the local landfill, which adds to the electricity or fuels in key on roads each year; and They represent higher volumes of overall recovery rate. global markets. For Sims, • Only two percent the incoming stream, and there is this is taking responsibility residual waste. a market for them, so we are able for our own waste and A $125m to provide a quality output of 97 closing the loop for Sims in invested over the percent target plastics, including the circular economy. meeting regulatory requirements past two years to for flame retardant content limits. maximise the material we can recycle 35 About Us The Sims Managing Our About Purpose Sustainability Performance This Report
Our Performance Water
Water resources around the world are facing pressure due to population growth, increasing urbanisation and climate change. Businesses have a duty to use water wisely in order to conserve resources and safeguard the environment and local communities.
Management Performance approach In FY19, Sims consumed Sims continues to use small 0.37 million M3 of water amounts of water mainly to globally. Our water manage dust generation from consumption decreased our operations to protect across all regions. our employees and mitigate nuisance to our neighbours. Some of our water reduction initiatives included: high-pressure water atomisers for dust control, smart water and foam systems for shredder dust and temperature control, as well as better utilisation of on-site captured run-off water.
Metric Unit FY18 FY19 Water Intake M3 in millions 0.39 0.37
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Our Performance People Case Health and safety study
At Sims, safety is one of our core values, and it is an essential component of our success. We seek continuous improvement in all safety- and health-related aspects across our operations, and we strive to create a zero harm environment.
Management approach Sims’ SHECS management The objectives of this systems provide a framework bottom-up approach include: Our long-term approach to of company standards, • Improving essential safety is built on a strong training, data systems and company standards focused foundation that includes tools to guide our safe on clear requirements; robust management systems, operations. We are reviewing tools and standards to and reassessing our • Translating these mitigate risks to employees, management systems with requirements in a new as well as clear governance a renewed focus on the end global training suite starting with the Board of user – our field employees. focused on a new Critical Directors’ SHECS committee Risk Management who reviews strategy and programme and EHS Reaching new audiences in New York performance. In our ESG standard requirements; governance section you The Sims Municipal Recycling (SMR) facility in Brooklyn is home to • Developing practical job can find more details on our the Recycling Education Center. The 8,000 square foot Recycling task training to ensure governing bodies. Education Center includes interactive displays, engaging activities, employees work safely; and and informational videos. It is an opportunity to see sustainability in • Upgrading data systems action with the city’s only commercial-scale wind turbine, use of native using online mobile apps to plants, unique stormwater management through the use of recycled go paperless which enables glass aggregate and maintenance of marine habitats. In FY19, SMR analysis of real time data. broke new ground and reached new audiences in unique ways. First, it teamed up with Oliver Peoples and #KeepAmericaBeautiful to host V Magazine’s spring fashion collection to promote sustainable fashion. You can watch the video here. Secondly, SMR hosted season two of FUSE’s T-Pain’s School of Business. In the show, rapper T-Pain talks with entrepreneurial millennials about their endeavours.
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Our Performance
People continued
Health and safety continued
Performance Immediate actions included: Work-related injury and illness • Eight weeks with stand- Employee fatalities Our total recordable injury Supporting our local fire departments It is with immense sadness down meetings covering key Case frequency rate (TRIFR) in study Our partnership with the York County Fire Department in the that we report the loss of risks and controls; FY19 was 1.47 per 200,000 UK has enabled them to go from performing rescue training two employees as a result of • Assessment and continuous hours or 7.35 per 1,000,000 for one to two vehicles every few years to re-certifying their workplace incidents in FY19. improvement of key hours worked, and our entire workforce and training new fire fighters within six months. Their loss of life profoundly risk areas, including a lost time injury frequency Our Middletown facility in the U.S. has also supported the Silver affects all of us. It also special emphasis on rate (LTIFR) was 0.33 per Lake Fire Department and the Liberty Fire Department by fortifies our determination to site traffic plans and 200,000 hours or 1.63 per hosting a simulated motor vehicle accident. learn from these incidents, maintenance activities; 1,000,000 hours. continuously improve, and do all we can to prevent them • Launch of a global safety These results show progress from happening in the future. perception survey to really in our safety journey with understand our safety a 30 percent improvement After almost a decade without culture at all levels of the since FY14. fatalities, these losses are a organisation; and clear reminder that we have In comparison, according to to always be vigilant about • A deep dive into sites with the most recent data from safety. As a result, we are especially high or low the U.S. Bureau of Labor resolute in looking at aspects safety perceptions. Statistics, in 2016 the metal of our management systems recycling industry average and programs to revamp and was 4.2 injury/illness improve our safety strategy. recordable rate (per 200,000 hours worked). The main types of work- related injuries were: injured while handling, lifting, or carrying; slipped, tripped, or fell on the same level; and hit by a moving, flying, or falling object.
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Our Performance
People continued
Health and safety continued
Job safety analysis is Employees Only* Lost Time Injury Lost Time Injury Number of Recordable Recordable embedded in our company’s Frequency Rate Frequency Rate Reportable Injury Rate (excl. Injury Rate (excl. Total Hours Number of Lost per 200,000 per 1,000,000 Injuries (excl. fatalities) per fatalities) per safety culture, along with pre- Area Worked Time Injuries hours hours fatalities) 200,000 hours 1,000,000 hours shift safety meetings during Sims Metal Management Group 11,025,433 18 0.33 1.63 81 1.47 7.35 which supervisors review daily job tasks and potential hazards Sims Municipal Recycling 532,294 2 0.75 3.76 5 1.88 9.39 with site crews. This open communication, coupled North America Metals 4,083,993 5 0.24 1.22 32 1.57 7.84 with tracked and mandatory Sims Recycling Solutions 2,786,310 3 0.22 1.08 12 0.86 4.31 daily safety conversations, has successfully increased Group Offices and Other 307,744 – – – – – – awareness and strengthened Australia & New Zealand Metals 1,735,468 4 0.46 2.30 27 3.11 15.56 our safety culture. We have specific standards UK Metals 1,579,624 4 0.51 2.53 5 0.63 3.17 for incident management and * Temporary employees not included reporting. Our online injury reporting system captures incident details, including injury Eliminating hazards and Our Critical Risk Management Critical control verifications This allows them to make classification, risk rating, root minimising risks programme was developed will be a mandatory key timely and informed risk cause analysis, and corrective Historically our focus on using a 10-year study of performance indicator and based decisions and curb action development and hazards and associated risks incident data as a basis for data will flow up to the trends before an incident assignment. Corrective action was general in nature. As we sharpening our approach to executive leadership team to occurs. Traditionally drafted closure is monitored through continue to evolve our long- critical risk management and drive accountability. System- standard work procedures key performance indicator term strategic plan, we’ll focus standardising best-in-class generated dashboards and will continue to be used dashboards. To ensure global on what matters most: our critical risk controls. automated weekly reports to develop competency- consistency, a Critical Risk critical risks. will support transparent based training, which Using state-of-the-art data Incident Committee was reporting requirements. naturally focuses on job management systems, we formed to validate company task and field-level risk will continue to proactively We are looking to advance classification of incidents. assessment capabilities. collect data to identify system our data management system weaknesses and highlight to empower front-end users at-risk areas of the business. and business leaders when allocating resources.
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Our Performance Top-down improvement initiatives are met with a bottom-up approach, People continued which engages field-level personnel in developing content for standards, inspection questions and associated training. Health and safety continued
Occupational health Strengthening our Top-down improvement With new company Our diverse business poses safety culture initiatives are met with expectations to be delivered Case specific risks to employee Employee engagement and a bottom-up approach, through safety standard study health. Monitoring and consultation is at the heart of which engages field-level requirements during FY20, mitigating these risks to our safety culture. Globally, personnel in developing training will continue to be ensure they remain below we hold structured daily content for standards, delivered and records will safe thresholds is a crucial communication sessions. inspection questions and be collected through our responsibility. Shredder sites These comprise pre-start associated training. learning management system. can create a large amount of safety and information Trainings are offered in the Employee surveys also dust particulate. We monitor meetings where corporate form of instructional videos provide a voice to employees this dust around the clock safety alerts, daily tasks and facilitator-led sessions to and they are communicated with solar powered monitoring and associated hazards are prepare employees for success. up to the executive leadership units and use engineering discussed and job safety team level. Feedback and We expose all employees to controls such as water misting analysis and risk assessments action plans are developed the same training programme. atomisers, water trucks are reviewed. These meetings and a managerial New employees are trained which spray roadways and open the floor to employees to response is always shared on tasks and job processes, work areas, encasement of discuss and address concerns with employees. on-site equipment, hazard shredder and baler process each and every day. and risk, and company safety components that produce dust, Safety training and In addition, our executive programmes. Worker health Protecting people and sprinkler systems to wash campaigns leadership team and the and well-being training is also To minimise exposure of its employees down scrap piles and conveyor We provide all employees Board of Directors conduct delivered through the learning to noise and dust, SRS in Villawood, drops. Noise-related protection with monthly safety training site visits to demonstrate management system. Australia invested approximately is mandatory in specific via videos and in classroom Sims’ commitment to Safety. $500k in a curtain wall to segregate site locations that exceed training, as well as through We recently upgraded our Our global Safety Alert shredder operation from rest of the occupational threshold limits. our daily ‘toolbox talks’ where intranet to highlight key communicates incident data yard. Although the site was compliant operations employees and messages relating to safety, immediately after an incident with boundary noise conditions, the their managers go over health and well-being. occurs, and the global installation of a curtain wall reduced the day’s activities and Communication and campaigns Hazard Alert communicates background noise at the boundary. potential risks. cover issues, such as texting the later findings of incident SRS also installed a sensor-operated while driving, healthy eating investigations and assigned traffic light system at entry/exits points and smoking-cessation. corrective actions. to keep people safe by segregating mobile plant and pedestrians.
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Our Performance
People continued
Human rights
We believe in upholding human rights as a vital part of conducting an ethical business. It enables us to develop a responsible supply Case chain and create a safe and fair workplace. In addition, it reduces study our reputational and business risks.
Management approach We work hard to stay abreast • The right to security of developments in acceptable of persons, including Sims is committed to standards of human rights, protection against improper respecting, promoting and such as safety in the and unlawful harassment upholding fundamental workplace. At a minimum, and against retaliation for human rights as set out in we comply with all applicable employees who report the UN Declaration of Human local laws, regulations and non-conformance with Rights and further defined for standards of the countries government regulations, business in the Organisation in which we operate, company policies and codes for Economic Co-operation and we strive to exceed of conduct; and Development basic compliance. (OECD) Guidelines for • The right to a safe and Multinational Enterprises. Details of our commitment healthy workplace for to human rights are each and every employee, We recognise our role and specifically addressed in regardless of status; responsibilities within our the Sims Code of Conduct. Tackling the homeless issue • The right to competitive sphere of influence and This includes specific policies remuneration, supporting Employees in the West Region in the U.S. volunteer their time in support endeavour to avoid being for the protection of rights for the concept of competitive of several homeless service programmes in their communities. For the complicit in, or encouraging employees, including: any, activities that may result pay for work performed; and past four years, employees in Sacramento have given their time to cook • The right to equal and serve meals for the residents of Sister Nora’s Place; Redwood City in human rights abuses. • All other legal rights in opportunity and non- employees volunteer their time to support Street Life Ministries; and our respect of the workplace discrimination, regardless Richmond employees have cooked and served a monthly dinner for the granted to our people in the of ethnicity, gender, religion, residents of the Greater Richmond Interfaith Program (GRIP) family shelter regions in which we operate. age, sexual orientation, for the past 10 years. In total, the Sims West Region has supported in health status or other such excess of 100 community organisations in FY19 with financial donations protected classifications; and many hours of volunteer staff time.
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Our Performance
People continued
Human rights continued
We are committed to the Performance All these percentages prohibition and elimination of provide us with a rough child, forced and compulsory Freedom of association is one estimate that approximately labour throughout the vehicle to protect the rights for more than 30 percent of communities in which we employees. Our employees our global workforce is operate. Our anti-slavery throughout Europe are free represented by a collective policy reflects our commitment to be represented by a works bargaining agreement. to act ethically and with council and/or union without Collective bargaining integrity in all our business any obligation to report agreements relationships and to implement or inform their decision to the Company. and enforce effective systems % of employee Region population and controls to ensure slavery Given the levels of voluntary and human trafficking is not disclosure, we estimate North America 41 taking place anywhere in our approximately 11 percent supply chains. representation of our UK Australia & population and less than five New Zealand 45 percent representation for the rest of Europe. In Australia & New Zealand and North America 45 percent and 41 percent of employees are under a collective bargaining agreement, respectively.
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Our Performance
People continued Sims University strives to provide best-in-class learning Developing talent solutions that are relevant, strategic and build a collective understanding of the business. It delivers online and class- We are proud to be an equal opportunity employer and we are committed based learning programmes through the Sims University to creating an inclusive working environment that is built on a foundation Learning Center, our global learning management system of mutual respect and inclusion where everyone can contribute, advance that was launched in April 2018. on merit and realise their full potential.
Management approach Employees are able to Current human resources Leadership development self-select and complete system limitations mean Developing our current and Our targeted programmes for Sims University training courses including that non-management future leaders is crucial for leadership groups Sims University is our global mandatory safety-related employees who work in our securing the talent and skills corporate university dedicated training and compliance- yard locations do not have we need to drive our future • Management Cadets to global excellence through based courses, such as network or computer access growth. We are committed to individual development. regional programmes for college cyber-security and code of to take advantage of the Sims promoting from within, and graduates and interns are in place in Sims University strives conduct. Mandatory training is University Learning Center. with the expansion of our core the Australia and UK regions; currently to provide best-in-class automatically assigned to new Currently that represents business and the acquisition under development in the North learning solutions that are and existing employees and approximately 50 percent of several new ones, we are America region; relevant, strategic and build reports are generated to track of our employees. To bridge providing opportunities to a collective understanding of status and completions. this gap, managers conduct current and aspiring leaders. • Emerging Leaders facilitated sessions and a dedicated programme for those the business. It delivers online We’re constantly evolving Our leadership development present content, such as responsible for leading teams and/ and class-based learning our training offerings to approach aims to develop monthly safety videos, during or other managers is currently in programmes through the support continual employee leaders who consistently daily ‘toolbox talk’ meetings development; and Sims University Learning development and engagement embody the Sims’ leadership and class-based training. Center, our global learning in a constantly evolving competencies and a “One • Advanced Leaders We are working on a process management system that was operating landscape. New, Sims” global mindset. We’re a programme for top-tier leaders and to aggregate attendance launched in April 2018. externally-developed off-the- developing a multi-tiered high-potential employees as identified data for this employee shelf content and custom- approach comprised of through the organisational capability The Learning Center serves group to establish better developed role-based training targeted programmes for review process. as a central repository for reporting of training hours programmes are regularly specific leadership groups. online operational, skills-based delivered globally. and management/leadership made available, such as new training programmes. hire on-boarding and manager training curricula, which are in development and scheduled to be introduced in 2020.
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Our Performance
People continued
Developing talent continued
Developing a high Performance performance culture Women Working @ Sims The formal performance and Employees with network Case Maria Medina development management access completed in excess study of 29,000 online courses system ensures that What is your current role What do you enjoy about through the Sims University employees establish and and how long have you your work? Learning Center in FY19. work toward clear business been at Sims? I enjoy that every day brings and personal goals, as well Launched in 2017, the three- I’m a Plant Manager and its own set of challenges, as receive feedback on the day North America Safety have been at Sims for and that I’ve worked in progress they’ve made based Leadership Certification 12 years. various aspects of the on their job responsibilities programme targets yard business, which gives me Why did you join Sims? and the Company’s managers and supervisors a broader understanding of I started working for Sims values and purpose. and is delivered via Sims the business as a whole. I’m because I needed a job Career development needs University. To date, 235 proud of the fact that I have and working in an industrial and opportunities are also employees have participated instituted changes in each setting was more appealing discussed during performance in this programme. area that I have worked in, to me than working in an review meetings. More than and it has resulted in a more In September 2018, 65 leaders office. I have stayed at 70 percent of our employees efficient operation. Sims for 12 years because receive performance and from all regions, countries and of the opportunities I have Are there any personal or career development reviews, lines of business attended been given. career achievements you’d as well as job feedback on a the annual Sims University Management Summit in New like to highlight? regular basis. The remaining Why did you choose York. This four-day, intensive Yes; being allowed to 30 percent are subject operations and maintenance conference was an opportunity create change, implement to collective bargaining as a career path? to participate in defining the the change and measure the agreements that govern Operations appealed to me, Company’s long-term strategic change – both locally and performance separately. because I never saw myself plan, review global strategies nationally (in the U.S.) – and sitting behind a desk all and fundamental business working my way up from Scale day. Working at the scale, processes, as well as network Operator to Plant Manager. I saw the managers and with other leaders from around Working from Scale Operator supervisors, and said, I can the globe. to management involves do that job and do it better. A LOT of blood, sweat and tears along the way.
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Our Performance
People continued
Diversity and inclusion
Our sustainable business growth depends on developing and retaining a diverse workforce that reflects the ever-changing demographics of where we do business, who we do business with and the communities in which we operate and live.
Management Our commitment to diversity As Sims continues on its The Global Respect & approach and inclusion focuses on four diversity and inclusion journey, Inclusion Committee, led by key principles: It is important for our global respect and the Group Vice President Through a collaborative and inclusion strategy will operate of Talent & Inclusion, • Foster a culture that leaders to understand inclusive culture, we can be under the three pillars of: supports our overall diversity shares a common set of more innovative, agile and that bias, unconscious and inclusion strategy. values where difference • People; responsive with a broader or not, can influence They provide input and is appreciated and experience base and a our decisions without • Inclusive leadership; and recommendations on accepted to support our diversity of approaches and initiatives and events designed business strategy; us even realising it. It is • Communities. resources. Our culture of important to know how to enhance the environment responsibility and engagement • Leverage cultural best to prevent those These pillars will guide a for diversity and inclusion also enables us to access competence and knowledge continued focus on a diverse across the Company. and retain local talent and to inform and accelerate biases from impacting and inclusive workforce, The Committee also strengthen connections the pace of our strategies the people decisions visible and active leadership developed unconscious bias with communities. and approaches; we make every day. and enhance sustainability classroom-based training. and corporate responsibility In alignment with our purpose • Positively impact employee Desiree Dancy, Due to be introduced for in our communities. narrative, Sims supports all engagement through a Group VP Talent managers and supervisors in employees and celebrates the strong focus on inclusion; and Inclusion 2020, it is designed to raise differences they each bring to and the awareness of unconscious the workplace. biases in the workplace, • Develop and enhance their impact on decision our relationships in the making, and best practices external marketplace. for mitigating the effects.
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Our Performance
People continued
Diversity and inclusion continued
Closing the gap Supporting new parents Employee engagement Since the Committee was Sims complies with annual In response to employee Employees have a direct launched in 2016, outcomes reporting requirements for It is exciting to see the feedback, the Company line to Alistair – either via an wage gap analysis for its embarked on a journey to email to a CEO mailbox, or have included: strides the Company is Australian and UK operations. making to bring more provide a minimum level of via the “Ask Alistair” forum The results from the latest paid parental leave for all on our intranet. We also • Establishing diversity tracking women into leadership methodologies and KPIs; Workplace Gender Equality employees globally – both provide relevant updates Agency (WGEA) analysis roles. It makes business men and women – in 2018. about people moves, business • Launching the Respect & Inclusion in Australia indicated sense. It has led to Statutory regulation or varying updates, celebrations and Education Series for all employees; that the Company’s pay a diversity of thoughts local company policy may highlights on what other sites • Reviewing Human Resources policies gap is currently at 4.65 and perspectives, which provide leave in excess of across the world are doing and practices to ensure support of percent compared to the enriches discussions, this minimum, however by on our intranet. In addition, diverse life events and lifestyles; national gender pay gap of establishing a minimum, we regions write and distribute approximately 14.1 percent. leading to better decision aim to provide a reasonable local newsletters that include • Reviewing recruitment and marketing The UK analysis indicated making and outcomes and consistent minimum regional information and host material to ensure inclusive that the current gender for our Company. amount of time for bonding town hall meetings for leaders representation and language; pay gap is 2.83 percent at with a newborn or an adopted to have open conversations Elise Gautier, Sims. While we still have child. For non-birthing with employees and highlight • Ongoing review of candidate slates Group Chief Risk and room for improvement, we and adopting parents, the development on specific to ensure inclusive recruitment, Compliance Officer succession planning and promotion; have progressed steadily minimum is four weeks’ paid areas of interest. In FY19, in reducing the gap, and leave. For birthing parents, we conducted an employee • Physically auditing facilities, which our performance compares the minimum is six weeks’ engagement survey and we resulted in improvements at 20 favourably with the overall paid leave. plan to repeat this every other percent of our locations globally; economy’s pay gap in the UK year, with a shorter ‘pulse • Launching the Women Working @ at 17.9 percent. A pay equity survey’ in between. We also Sims employee resource group; and analysis is planned for our conducted a global perception North America operations survey in FY19 to gain a clear • Introducing cultural celebrations. during FY20 as part of our understanding of how our intentional and systematic safety culture is perceived at approach to closing the all levels of the organisation. gender pay gap.
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Our Performance
People continued
Diversity and inclusion continued
Performance In FY19, we carried out an In FY19, we maintained audit that resulted in improved Our aim is to Case our focus on diversity and amenities to better meet the increase the study engagement with a wide needs of all our employees range of programmes and – both male and female – at proportion of initiatives around the globe. 35 facilities around the world, female employees and more will follow in FY20. Our industry is traditionally across the entire male dominated one, and More than 1,600 employees organisation to 25 we’re committed to providing participated in the FY19 percent. In FY19, a working environment that employee engagement our total female is fit and welcoming for survey. The results provided employee base all employees. valuable insight into opportunities that can make was 19.5 percent. We increased the percentage Sims a better place to work. of women on our executive leadership team from nine Our actions in response have A series of diversity and cultural percent to 25 percent, which focused on: celebrations took place at our exceeded our FY20 target of facilities in the U.S. to honour • Improving the overall 20 percent female employees and educate employees about work environment in senior leadership positions. the contributions of our diverse through process and Promoting cultural awareness in Australia Female representation on our society. Events included efficiency improvements; We celebrated Reconciliation week and International Indigenous Day Group’s Board of Directors celebrations of traditional in 2019 as part of our efforts to promote cultural awareness in Australia. was 37.5 percent in FY19. • Providing career growth cuisine for Asian-American Employees were involved in discussions around what Reconciliation opportunities through Pacific Islander Heritage Month Sims continues to track Day means, how we can help achieve harmonisation and developing targeted training and and a panel discussion for applicants for positions. the Sims Reconciliation Action Plan. In March 2019, a number of our development; and LGBTQ20 Pride Month. In the Our goal is to have females managers participated in a Cultural Awareness Programme, delivered U.S., UK and Australia, we comprise 25 percent of • Enabling deeper by a local member of the Traditional Owners. The programme aimed to acknowledged International all applicants (internal understanding of the Sims assist participants in developing a better understanding of the cultural Women’s Day to celebrate and external) by FY20. vision and direction through perspectives of indigenous people and key issues that impact them, the contributions of women in We reached 24 percent female our recently launched while developing their cross-cultural communication skills. the workplace. applicants for the positions we purpose narrative and advertised in FY19, almost long-term strategy. meeting our FY20 target. 20 Lesbian, gay, bi-sexual, transgender and queer 47 About Us The Sims Managing Our About Purpose Sustainability Performance This Report
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People continued
Total employees Gender of employees* Minority representation in at fiscal year end 2019 our U.S. workforce
19.5% 17.6% 18.6% 20.4% whole organisation Australian UK/EMEA*** North American** is female employees employees employees are are female are female female
North America* 2,475 UK 854 Total temps/contractors % Rest of the World 858 Asian Pacific Islander 6 Australia 808 Black 16 Overall (less joint ventures) 4,995 Hispanic/Latino 35 22% of 155 new hires were female 2 or more ethnicities 1 Total temps/contractors at fiscal year end 2019 Age of employees* 78% of 561 of new hires were male
Diversity of governance bodies % females
Senior Executive21 37.5% Board 12% and above
North America* 344 % Rest of the World 229 whole Management22 organisation under 30 13 UK 115 14.5% 19.5% 30–50 yrs. old 48 Australia 104 Over 50 yrs. old 39 Overall (less joint ventures) 792
* Includes North America Metals, US SRS, 21 Senior Executives generally sit at “CEO-2” in the Group’s reporting 22 Managers generally sit at “CEO-3 and CEO-4” * Data collected where legislation allows SMR and Group employees structure. “CEO-1” refers to the layer of senior executives reporting directly (although in some instances “CEO-2”) in the ** Includes Metals, SMR, SRS – NA, Global Trade & Group to the CEO, “CEO-2” to the next layer of management reporting to those Group’s reporting structure. senior executives, and so on. *** Includes UK Metals & SRS EMEA 48 About Us The Sims Managing Our About Purpose Sustainability Performance This Report
Our Performance
People continued
Community engagement and local impacts
The communities in which we operate are key to our success and we want them to see us as a trusted partner. Our communities fuel our sustainable growth by providing links with local workforce, infrastructure and suppliers.
Management approach Our operations bring economic benefits to the Our approach to engagement Investing in communities Sims is committed to being Our stakeholder communities where we work varies between regions and sites, We also aim to have a positive, a respected, responsible engagement approach by employing people, buying but we always provide a way for long-term impact by investing corporate citizen by working services and products and the community to address any in projects that enhance social, constructively with our Courtesy and respect paying taxes. We focus on concerns and complaints in a environmental and economic communities and other Each employee is a transparently engaging with timely manner, either via a Sims well-being. Our sites support stakeholders in engaging in representative of Sims and, as our host communities and we community focal point employee a large number of community the honest and ethical conduct such, is accountable for their work openly with anyone who or a dedicated phone line for initiatives with financial donations of our business. conduct. Our employees must is impacted by our operations. act professionally, courteously neighbours to call. and volunteering. Over the From contracts with coming years, we will develop Our commitment to being and respectfully to all fellow Product awareness companies for IT asset a more strategic approach a respected, responsible employees, suppliers, contractors, In our SMR business in particular, disposition to accepting to community investments corporate citizen drives us visitors and members of the we engage with stakeholders cans, buckets and car loads to maximise our collective to work constructively with community at all times. involved throughout the lifecycle from individual peddlers, we positive impact across our sites communities and other of our products to promote the purchase valuable resources Stakeholder engagement and businesses. stakeholders and ensure responsible use and management from them to inject back into We engage regularly, openly and honest and ethical conduct in of those products. More than the circular economy. Sims’ honestly with the people living in the way we conduct business. 8,000 community members business model requires its local communities who may be and other stakeholders visit our facilities to be located in or affected by our operations and we Recycling Education Center in near large metropolitan areas take their views and concerns into Brooklyn, NY every year. and most of our employees, account in our decision-making. including the local senior Nearly 100% management, are hired from of our spending is on local the local community. suppliers, big and small.
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Our Performance
People continued
Community engagement and local impacts continued
Keeping Australia Case study beautiful Sims Metal Management has joined forces with Keep South Australia Beautiful (KESAB) to increase our positive impact. Together, we have created an educational microsite aimed at students and teachers to raise awareness of the importance of metal recycling. We are also jointly seeking a State Government grant to remove scrap metal and clean up areas in the APY lands (Aboriginal lands in North West SA).
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Our Performance
Responsible Business Employees with a high degree of exposure to risk – either directly or due to their level of influence, such as those managing third-party contracts, procurement, handling Integrity is one of our core values. We conduct transactions, or managing sites and business functions – are business with integrity and adhere to the required to disclose any potential conflict of interest annually highest standard of ethical business conduct and to participate in conflict of interest training, in addition to and transparency. the annual code of conduct training.
Preventing anti- Sims has publicly posted Code of conduct training, Ensuring compliance Third-party agents are its Anti-Bribery & Anti- and in particular, anti-trust required to acknowledge competitive practices, The code of conduct bribery and corruption Corruption Policy to clearly rules and anti-bribery/anti- their understanding of our communicate its expectations corruption, is required to identifies multiple avenues anti-corruption and company Our Board is committed when conducting business on be taken annually by our for reporting compliance ethics requirements, as well to establishing sound behalf of Sims to its officers, commercial teams and global concerns, including directly as our incident reporting corporate governance employees, contractors, trade personnel. contacting managers, human procedures. Our agents practices that ensure we agents, consultants, suppliers resources, the CRCO, general are located in countries Employees with a high uphold our core values of and its Board of Directors. counsel, the CEO and the where we typically do not degree of exposure to risk – safety, integrity, respect, The policy sets standards that Board of Directors. It also have a presence, or have either directly or due to their transparency, excellence either meet or exceed anti- informs employees and a limited presence, and act level of influence, such as and social responsibility. bribery and anti-corruption third-parties that they can as intermediaries with our those managing third-party This is fundamental to requirements in each of raise any concerns via Sims’ customers mainly for the contracts, procurement, fostering investor confidence the countries in which we hotline, which is operated by sale of ferrous and non- handling transactions, or and driving higher value for do business. It sets the a third-party and supports ferrous secondary metals. managing sites and business shareholders through prudent basic requirements that all anonymous reporting. These agents often operate functions – are required to risk management and a employees must follow in in countries where the disclose any potential conflict Code of conduct training and culture that encourages ethical their dealings on behalf of corruption perception index of interest annually and training on anti-trust rules conduct, accountability and the Company. is relatively low. to participate in conflict of and anti-bribery/corruption for sound business practices. interest training, in addition commercial teams and global to the annual code of trade personnel, in particular, conduct training. is conducted annually.
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Responsible Business continued
Sims’ internal audit services Privacy and security Employees throughout our Shareholders are also Nearly all our employees, provide independent, objective global organisation are also provided with the opportunity including the local senior assurance and consulting Sims takes great pride in trained on our Acceptable to vote annually on the management, are hired services to improve the having robust privacy and Use policy, which outlines the remuneration structure from the local communities. Company’s operations. security policies and strives acceptable use of computer of the key management In all of Sims’ operating It brings a systematic, to be best-in-class, protecting equipment and the protection personnel, and the Company jurisdictions, entry-level wage disciplined approach to any information and data in of information assets. has received better than 90 rates are above the minimum evaluating and improving our custody and stewardship. percent of the vote in favour wage requirements. the effectiveness of risk We continue to strengthen Fair remuneration for the past two years. information security systems management, control and Each year, within our Annual by implementing security Over the past 19 months, governance processes Report to Shareholders, controls and training. Sims has adopted and for a broad range of audit- we disclose our executive For example, our users are implemented a global grading related tasks of a financial, remuneration philosophy trained on how to recognise process using the well- operational, information and guiding principle, a phishing attack and what established and validated technology, external reporting along with how the pay to do when one occurs on Hay Grading methodology. and compliance nature outcomes are aligned to a regular basis. We provide This provides a consistent to provide assurance that company performance. this training via simulated foundation for identifying roles Sims policies and processes Our independent Board of phishing emails to our users, of similar value throughout operate effectively. Directors and executive as well as through assigned the Company. With this leadership team actively In FY19, our internal audit cyber-security training through foundation, we can apply discuss the Company’s group conducted 25 internal the Sims University Learning a consistent approach to remuneration structure and audits and followed up on Center. We see this as a key participation in incentives design with key stakeholders management action plans. growth driver for our business, and other variable benefits. including shareholders, Through the work performed as illustrated through our In addition to the globally Board members, investors the internal audit did not e-waste and IT asset consistent grading structure, and shareholder advisors. identify any conflicts of interest disposition (ITAD) business, we participate in and purchase The outcomes of these nor incidents of corruption. which serves blue chip clients independent salary surveys to discussions influence and across a range of industries ensure we are paying market shape changes made to the to securely and responsibly competitive base and variable remuneration structure. recycle and manage the pay based on the duties, skill disposition of IT equipment requirements and location and electronic products. of employment.
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Our Performance Economic Performance
Sustainable economic Tax matters Sims, throughout its legal performance is one of the entities, follows best practices FY19 Economic value generated, distributed and retained, Australian dollars in millions keys of sustainable business, Tax matters are managed and has adopted the and we want to thrive through in accordance with Group Committee of Sponsoring the creation of shared value policies, applicable country Organizations of the whereby as our business laws and regulations, Treadway Commission 6,754 5 , 8 6 4 664.1 and the Group’s grows, so do the communities (COSO) Framework as the Revenues23 Operating costs Wages/benefits around our operations, and Corporate Governance basis for the Group’s Tax our suppliers and other Principles, which define Risk Management. stakeholders also benefit. its relationships with its stakeholders and govern This tax risk management Sales revenue of how it conducts its business. framework identifies, 7.9 65.7 A$6,640.0 million in FY19 Consideration is given to the maintains, manages and Payments to providers Payments to was up three percent Group’s reputation, brand, monitors tax risks and of capital, net governments (taxes) compared to sales revenue value creation, corporate and mitigating controls of the of A$6,448.0 million during social responsibility when Group. External and internal the year ended 30 June 2018 considering any tax initiatives. auditors periodically test (FY18). At constant currency, and review to ensure that all Sims’ Tax Corporate 107.9 44.7 sales revenue was down 2.5 of the internal controls are Governance policy and the Payments to Economic percent primarily due to lower properly working and that shareholders value retained average sales prices. tax strategy support existing documentation is maintained, and current practices and evaluated, monitored Sales volumes decreased by Economic value generated, distributed and retained, Australian dollars in millions FY18 processes that are performed and communicated to the 0.5 percent to 9.803 million consistently throughout the executive leadership team, Revenues23 6,564.2 tonnes in FY19 versus global operations. internal and external audit 9.856 million tonnes in FY18. Operating costs 5,663.7 and the Audit Committee of Average selling prices were the Board. Wages/benefits 620.0 lower for both ferrous and non- ferrous metals. There were Payments to providers of capital, net 10.8 no significant changes in the Payments to governments (taxes) 66.2 state of affairs of the Group during FY19. Refer to our Payments to shareholders 106.8 Annual Financial Report for Economic value retained 96.7 additional information. 23 Includes other income and the share of results from equity accounted investments 53 About Us The Sims Managing Our About Purpose Sustainability Performance This Report
About This Report
54 About Us The Sims Managing Our About Purpose Sustainability Performance This Report
About This Report Scope and boundary External recognition Glossary Contact
This report has been FY19 data and information Sims has been named in the Dow Jones Ferrous secondary Thank you for your interest in prepared using the Global on the sustainability report Sustainability Index Australia Index for recycling: our report. We welcome your Reporting Initiative (GRI) was audited by Sims Internal 10 consecutive years. comprises the collection, questions, comments and IntroducingStandards MSCI as ESG guidance Fund Ratings – Audit team. processing and trading of feedback. You may contact The topGRI‑referenced level rating, the MSCI – ESG covering Fund Rating, is designed to assess the resilience of a fund’s aggregate holdings to long-term ESG iron and steel secondary us at: Additional reporting that may risks.FY19 Highly ratedreporting funds consist period. of issuers with leading or improving management of key ESG risks. raw material. be of interest to the reader DJSI – Australia Erica Ocampo The “Fund ESG Quality Score” is assessed using the underlying holdings’ overall ESG scores, overall ESG ratings, and overall ESG Index since 2009 Group Director ratingsThe trend, Group and is calculatedreports inall three of steps. The fundcan be ESG Quality found Score online: is then mapped to the AAA-CCC letter rating categories. Materials Recovery Facility the General Disclosures (MRF): of Sustainability • Downloadable version described in the GRI a specialised plant that [email protected] 1 of this report4 Standards, as well as the receives, separates and Angela Catt specific disclosures related • Sims Metal Management’s prepares recyclable Weighted average ESG Fund Rating Group Director of to issues material to us. most recent previous report, materials for supply to ESG score Investor Relations covering the year ending end‑user manufacturers. We include a table inside [email protected] Weighted average ESG score MapJune the 30, ESG 2018, Quality andScore an to the back cover of this report ACSI – The Australian Council of Non-ferrous based on portfolio holdings thearchive ESG Fund of Ratingearlier annual cross-referencing key GRI Superannuation Investors (ACSI) assessed secondary recycling: sustainability reports indicators and showing where, Sims Metal Management Limited at comprises the collection, in this report, those topics • 2019 Sims Metal a ‘Leading’ rating of ESG reporting. processing and trading are discussed. Management ASX fillings of other metal alloys and residues, principally • Sims Metal Management 3 aluminium, lead, copper, zinc 2 Investor Strategy
CCC and nickel bearing materials. Day presentation External Memberships and Engagements: ESG momentum ESG tail risk Secondary metals: AAA metal derived wholly or Net exposure to holdings with Exposure to the holdings with in part from scrap. improving vs. worsening ESG CCC and B ESG ratings ratings (multiplier) (multiplier) Twitch: floated fragmented aluminium scrap from automobile shredders. Zorba: shredded mix of non-ferrous metals, mainly aluminium.
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We provide insights across multiple dimensions: • ESG Fund Rating: identify, screen, • ESG momentum: gain insight into • ESG tail risk: understand fund rank, and report on funds using the a fund’s ESG track record, which is exposure to holdings with worst-of- AAA-CCC signal designed to indicate fund exposure to class ESG Fund Ratings of B and CCC holdings with a positive rating trend or worsening trend year over year
MSCI ESG Fund Ratings | msci.com About Us The Sims Managing Our About Purpose Sustainability Performance This Report
About This Report continued GRI Table
Disclosure Page / location GRI 102: General Disclosures 1. Organisational profile 102-1 Name of the organisation 3 102-2 Activities, brands, products, and services 5 102-3 Location of headquarters 4 102-4 Location of operations 4 102-5 Ownership and legal form Sims Metal Managementis is a publicly traded company, with a primary share listing on the Australian Securities Exchange and ADRs trading in the United States on the OTC Market. Page 89 Subsidiaries. Footnote 23. 102-6 Markets served 4 102-7 Scale of the organisation 4 102-8 Information on employees and other workers 48 102-9 Supply chain 16 102-10 Significant changes to the organisation and its supply chain Annual Report page 53, page 88. Footnote 22. 102-11 Precautionary Principle or approach 26 102-12 External initiatives 55 102-13 Membership of associations 55 2. Strategy 102-14 Statement from senior decision-maker 7-10 102-15 Key impacts, risks, and opportunities 25, 62-64 3. Ethics and integrity 102-16 Values, principles, standards, and norms of behavior 20, 41-42, 51-52 102-17 Mechanisms for advice and concerns about ethics 51
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Disclosure Page / location 4. Governance 102-18 Governance structure 22 102-19 Delegating authority 22 102-20 Executive-level responsibility for economic, environmental, 22 and social topics 102-21 Consulting stakeholders on economic, environmental, 22 and social topics 102-22 Composition of the highest governance body and its committees 21 102-23 Chair of the highest governance body 21 102-24 Nominating and selecting the highest governance body Remuneration Report section on the Annual Report page 36 102-25 Conflicts of interest Yes, conflicts of interest are required to be disclosed, updated and confirmed on an annual basis inclusive of our Board of Directors 102-26 Role of highest governance body in setting purpose, 20 values, and strategy 102-27 Collective knowledge of highest governance body Information about our board members on our Annual Report page 16 102-28 Evaluating the highest governance body’s performance Remuneration Report section on the Annual Report page 36 102-29 Identifying and managing economic, environmental, 22 and social impacts 102-30 Effectiveness of risk management processes 22 102-31 Review of economic, environmental, and social topics 22 102-32 Highest governance body’s role in sustainability reporting 22 102-33 Communicating critical concerns 22 102-34 Nature and total number of critical concerns We have a highly engaged and dynamic leadership body. Currently there is not systematic tracking of critical concerns as critical concerns are communicated and addressed in a timely manner 102-35 Remuneration policies Remuneration Report section on the Annual Report page 36-57 102-36 Process for determining remuneration Remuneration Report section on the Annual Report page 36-57
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Disclosure Page / location 102-37 Stakeholders’ involvement in remuneration Remuneration Report section on the Annual Report page 36-57 102-38 Annual total compensation ratio Remuneration Report section on the Annual Report page 36-57 102-39 Percentage increase in annual total compensation ratio Remuneration Report section on the Annual Report page 36-57 5. Stakeholder engagement 102-40 List of stakeholder groups 24 102-41 Collective bargaining agreements 42 102-42 Identifying and selecting stakeholder 23 102-43 Approach to stakeholder engagement 24 102-44 Key topics and concerns raised 25, 62-64 6. Reporting practice 102-45 Entities included in the consolidated financial statements Annual Report page 89 Subsidiaries. Footnote 23 102-46 Defining report content and topic Boundaries 24 102-47 List of material topics 62-64 102-48 Restatements of information 31 102-49 Changes in reporting 23 102-50 Reporting period 55 102-51 Date of most recent report 55 102-52 Reporting cycle 55 102-53 Contact point for questions regarding the report 55 102-54 Claims of reporting in accordance with the GRI Standards 55 102-55 GRI content index 56-61 102-56 External assurance This report was audited by Sims Internal Audit team. There was no external assurance
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Disclosure Page / location GRI 200: Economic Standards GRI 201: Economic Performance 201-1 Direct economic value generated and distributed 53 201-2 Financial implications and other risks and opportunities 26-28 due to climate change 201-3 Defined benefit plan obligations and other retirement plans Annual Report page 79-80 201-4 Financial assistance received from government Annual Report page 67 GRI 202: Market Presence 202-1 Ratios of standard entry level wage by gender compared 52 to local minimum wage 202-2 Proportion of senior management hired from the local community 52 GRI 204: Procurement Practice 204-1 Proportion of spending on local suppliers 49 GRI 205: Anti-corruption 205-2 Communication and training about anti-corruption policies 51-52 and procedures 205-3 Confirmed incidents of corruption and actions taken 52
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Disclosure Page / location GRI 300: Environmental Standards GRI 301: Materials 301-1 Materials used by weight or volume 9.8 M tonnes of secondary metals recycled, 400K tonnes of electronic waste recycled, 500K tonnes of municipal curbside recycling processed, 02 301-2 Recycled input materials used Nearly 100 percent of our inputs are secondary materials 301-3 Reclaimed products and their packaging materials See 301-2 GRI 302: Energy 302-1 Energy consumption within the organisation 31 302-2 Energy consumption outside of the organisation 31 GRI 303: Water and Effluents 303-3 Water withdrawal 36 GRI 305: Emissions 305-1 Direct (Scope 1) GHG emissions 31-33 305-2 Energy indirect (Scope 2) GHG emissions 31 GRI 306: Effluents and Waste 306-2 Waste by type and disposal method 34-35
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Disclosure Page / location GRI 400: Social Standards GRI 401: Employment 401-1 New employee hires and employee turnover 48 401-3 Parental leave 46 GRI 403: Occupational Health and Safety 403-1 Occupational health and safety management system 37 403-2 Hazard identification, risk assessment, and incident investigation 39 403-3 Occupational health services 40 403-4 Worker participation, consultation, and communication 40 on occupational health and safety 403-5 Worker training on occupational health and safety 41 403-6 Promotion of worker health 40 403-7 Prevention and mitigation of occupational health and safety 37 impacts directly linked by business relationships 403-8 Workers covered by an occupational health and safety 40 management system 403-9 Work-related injuries 38-39 403-10 Work-related ill health 39 GRI 405: Diversity and Equal Opportunity 405-1 Diversity of governance bodies and employees 48 405-2 Ratio of basic salary and remuneration of women to men 46
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Grouping Issue Sub-issues Definition Circular economy Renewable production, Recycling Moving towards a more cyclical value chain where by ‘waste’ products can be re-used as raw materials for input Scrap sourcing and collection, Waste separation processes, Process innovation Innovate processes used to collect and recycle scrap metal throughout the value chain Efficient smelting processes, Quality of recyclate inputs Advance the Quality of metal product Process innovation, Circular economy, Resource efficiency Minimise loss in quality of metal inputs during recycling process to produce up-cycled products circular economy outputs WEEE regulatory compliance, Responsible sourcing of E-waste E-waste recyclates, Safe processing and recycling of Ensuring correct sourcing, handling, and processing of E-waste throughout the value chain hazardous materials and electronics Quality of inbound Enterprise risk management Ensure consistent quality of recyclate inputs into recycling operations materials Resource availability Managing the supply and availability of resources used in operations including raw materials and process inputs Supplier audits (hazardous/radioactive materials marking), Hazardous or Radioactive Portal monitoring, Local hazardous waste regulatory Understanding and minimising the risk of hazardous and radioactive materials throughout the value chain Quality of inbound materials compliance, Site exposure planning materials Waste from operations Recycling, Resource recovery Minimising the volume of waste sent to landfill from operations sent to landfill Increased cost of and Waste type reclassification (municipal to hazardous), Ensure plans are in place to mitigate the impact of increased automotive shredder residue (ASR) waste disposal cost. availability of disposal Zero waste target, Post-shredder technology, Identifying and securing recycling or recovery options for ASR waste to ensure compliance with regulations options for ASR waste Waste‑to‑energy technology Economic Hedging, Political and economic conditions in Turkey, US, Ensuring sustained positive economic performance and value for shareholders and mitigating risks to economic performance UK, ANZ, Metal price volatility, Waste stream interruption performance from externalities Economic Geopolitical Policy engagement Ensure plans are in place to mitigate the impact of geopolitical shifts on operations and business viability performance disruption Ferrous metal Ensure plans are in place to mitigate the impact of short-term changes in ferrous metal prices at a local Business continuity, Economic performance price volatility and global level Ethics & Integrity, Collusion with competitors, Price fixing Anti-competitive Ensuring actions are taken to prevent instances of anti-trust and monopolistic behaviour throughout operations Co-ordinating bids, Unfair business practices, Cartels, practices and supply chain Ethical business Abuse of market position Bribery and Ethics & Integrity, Bribery, Facilitation payments, Fraud, Ensuring actions are taken to prevent instances of bribery and corruption throughout operations and supply chain corruption Extortion, Collusion, Money laundering Indigenous rights, Forced labour, Child labour, Zero-hours Human rights, labour contracts, Mechanisms to monitor supply chain and ensure Ensuring good, fair and just human rights and labour standards which respect fundamental human rights throughout Respect rights, and labour relations adherence to standards, Freedom of association and the value chain for people collective bargaining Good supply chain practices, Supply chain audits, Responsible sourcing Ensuring a fair and ethical supply chain through audits and self-reporting Self‑reporting of suppliers, Direct sourcing
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Grouping Issue Sub-issues Definition Employee safety, Contractor safety, Health, Exposure to Health and safety hazardous substances, Safety training, Personal security, Ensuring a safe workplace for our employees that doesn’t compromise their health Physical security/ threat of violence Health and safety Safety regulatory compliance, Safety fines and penalties, Potential for fires Ensuring effective management of the risk associated with fires in all direct operations License to operate Transportation Vessel transportation loading, Truck transportation, Prevent and minimise injury to employees and contractors, and loss of resources and capital from accidents Vehicle safety at operations transportation accidents Growth in circular economy, Demand for recycled Climate change Ensuring opportunities arising from wider acceptance and actions taken on climate change are understood materials, Demand for alternative energy sources, opportunities and included in strategic business planning Demand for recycling infrastructure and technologies Site level physical risk, Waterways access, Ensuring acute and long-term climate change impacts on business strategy and operations are understood Climate change risks Climate risk in investments, Extreme weather/ and mitigation/adaptation plans are implemented natural disaster preparedness Addressing GHG emissions Climate change, Scope 1, 2, and 3 emissions Greenhouse gaseous emissions from business operations climate change Preparing for transition to carbon economies throughout global operations. Ensuring compliance with local policies Carbon Pricing Carbon reporting and transparency, Revenue impact on carbon pricing Renewable and alternative Zero waste disposal target, Energy cost target Increase energy sourced from renewable and alternative sources including waste-to-energy energy generation Transport Vehicle efficiency, Vehicle idling in yards, Minimising consumption of fuel for transport associated with operations fuel consumption Fuel efficient vehicle fleet Community Employing local people, Sourcing locally, Working with and supporting communities to ensure livelihoods, prosperity and wellbeing engagement Respecting indigenous populations Being a good Noise, dust and other neighbor Metal pollution, Particulate emissions, Noise pollution, local direct environmental Preventing or minimising environmental impacts from operations Community health impacts Failure to comply with regulation, Adapting products Regulatory in response to regulatory change, Uncertainty of Responding and adhering to regulatory requirements, including pre-empting and shaping future requirements compliance regulatory environment Regulatory Local regulatory requirements, Changes in waste and compliance Waste management Ensuring waste from operations is handled and disposed of in a responsible way in-line with regulatory requirements trade streams Sustainability Transparency, Stakeholder engagement, Ensuring management of strategic approach to sustainability and material subject matters is appropriately governance Sustainability reporting governed and reasonably integrated into corporate governance structures
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Grouping Issue Sub-issues Definition Diversity & inclusion Diversity, Discrimination, Gender empowerment, Diversity & inclusion at work means that all individuals should be accorded equal opportunities to develop fully and equality Employees with disabilities the knowledge, skills and competencies that are relevant to the economic activities they wish to pursue Thriving workforce Staff recruitment, Creating a workplace that’s attractive to prospective employees and where current employees can forge retention, development, Employee training, Career evolution fulfilling careers and training Water Conserving water, Water stewardship, Water stress, Managing the use of water for efficiency and responsible consumption Water management consumption Water intensity Water disposal (effluents) Water pollution, Water recycling, Water reclamation Preventing pollution to water supplies and managing waste water such that it can be reused as input Technological Digitisation, Cyber security, Product innovation, Leverage advancements in technology to achieve and sustain competitive advantage innovation Industry 4.0, Blockchain Digitisation Responsible control and management of customer and product data; ensuring compliance with relevant Privacy & security GDPR, Cyber security, Reputational risk and innovation data protection laws Recycling Good supply chain practices, Process efficiency Ensuring best available technology (BAT) recycling infrastructure is in place throughout the value chain infrastructure
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