SIMS Metal Management – Sustainability Report 2019
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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. 03 About Us The Sims Managing Our About Purpose Sustainability Performance This Report 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. 04 About Us The Sims Managing Our About Purpose Sustainability Performance This Report 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 05 About Us The Sims Managing Our About Purpose Sustainability Performance This Report 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 06 About Us The Sims Managing Our About Purpose Sustainability Performance This Report 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. 07 About Us The Sims Managing Our About Purpose Sustainability Performance This Report 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.