Annual Report 2018 Sustainability Report 2018

SUSTAINABILITY REPORTANNUAL REPORT 2018 SIMS METAL MANAGEMENT LIMITED SUSTAINABILITY REPORT 2018 ABOUT THIS REPORT

Stewards of our world’s limited resources...

ABOUT SIMS METAL MANAGEMENT ALIGNING TO INVESTOR INTEREST

We at Sims Metal Management are proud Over the past year, our investors of our role as stewards of our world’s have increasingly asked about Sims’ Recycling for posture and performance in the areas >100 years limited resources for over 100 years. As a global leader of metals and electronics of environmental, social and corporate recycling we play an intrinsic role in the governance (ESG). As the graphic below circular economy, by keeping resources in illustrates, Sims is very much aligned with use as long as possible, extracting the the circular economy – where materials maximum value from those resources remain in useful life for as long as possible. >250 facilities We discuss this in detail later in this report. including JVs while in use, and then recovering and regenerating products and materials at In June 2017, the G20 Financial Stability the end of their useful life. Our efforts Board’s Task Force on Climate-Related contribute to the sustainable future of Financial Disclosures (TCFD) released its our world. final recommendations on the disclosure Operations in Our core businesses are: of the risks and opportunities as we 18 countries transition into a lower carbon economy. • Metals Recycling - As the world’s We have organized this report around leading publicly listed metals recycler, the four main categories of the TCFD Sims buys and sells ferrous and recommendations. (Governance, Strategy, non-ferrous recycled metals. Risk Management, and Metrics) >5,000 • Electronics Recycling (Sims Recycling employees globally Solutions) takes in discarded electronics and refurbishes, repairs, GLOBAL REPORTING INITIATIVE remanufactures and restores the Sims is a long-standing supporter of materials for continued useful life. standardized sustainability reporting • Municipal Recycling – Sims Municipal guidelines in general, and of the Global Recycling receives household Reporting Initiative (GRI) in particular. recyclables from municipalities such as New York City and Chicago. We include a table inside the back cover of this report cross-referencing key GRI • Renewable Energy Generation - Sims’ indicators aligned with our Materiality joint venture LMS is a leading renewable Assessment, showing where in this energy and carbon abatement company, report those topics are discussed. offering energy recovery from landfill gas and solar energy collection panels. The figure below depicts Sims’ businesses and their place in the circular economy.

SIMS METAL MANAGEMENT AND THE CIRCULAR ECONOMY

REMANUFACTURE REFURBISH REFILL REPAIR ELECTRONICS RECYCLING RESTORE • 430,000 tonnes of electronics recycled annually • 28 facilities across 16 countries RECYCLING • Emerging opportunities in IT asset management SOLUTIONS and engineering solutions • Development of innovative recycling technology useful to both electronics and metals recycling businesses

MATERIAL EXTRACTION PRODUCTION DISTRIBUTION CUSTOMER END-OF-LIFE PROCESSING USE

METALS RECYCLING • 9.9 million tonnes of secondary metals sales in FY18 • 200+ facilities with operations in 6 countries, including joint ventures • Export capabilities across North America, UK and Australasia, with 13 deep water ports globally • Global market leader RENEWABLE ENERGY SIMS (LMS) LANDFILL METAL MANAGEMENT SERVICES MANAGEMENT MUNICIPAL RECYCLING

MUNICIPAL FOR FURTHER INFO PLEASE CONTACT RECYCLING ELISE GAUTIER 200 WEST MADISON, STE 3600, CHICAGO, IL 60606. TELEPHONE: 1 312 644 8562 ABOUT THIS REPORT SIMSMM.COM 01

ABOUT THIS REPORT

Our 2018 Sustainability Report shares our progress in shaping a more sustainable world. It discusses our contributions to the circular economy, as well as the work and projects we are pursuing to minimize the impact of our operations on the environment and society through responsible governance and leadership. This Sustainability Report supplements the discussion of our environmental, social and governance activities integrated into our Annual Report of Financial Results for FY2018. It follows the guidelines established by the G20 Financial Stability Board’s Task Force on Climate-Related Financial Disclosures (TCFD) released in June 2017. – Introduction • Sims’ Core Businesses • From the Chairman • From the CEO – Governance • Sustainability Governance and Leadership • Sustainability Governance Organisation • Our Core Values • Global SHECS Polies • Driving SHECS Performance – Strategy • Sims and the Circular Economy • UN Sustainable Development Goals • Innovation and Technology – Risk Management • Enterprise Risk Management • Materiality Assessment • Climate Change Ramifications – Metrics and Performance • Valuing Sims’ impact on Society • Performance Highlights • Health and Safety • Energy and Greenhouse Gas • Carbon Risk • CO₂ Emissions • Green Energy • Waste Management • Water Conservation • Community Engagement • Diversity and Talent – External Recognition – Our Path Forward – Alignment with the Global Reporting Initiative SIMS METAL MANAGEMENT LIMITED SUSTAINABILITY REPORT 2018 02

INTRODUCTION

Business has always been a rapidly changing landscape, and companies that adapt accordingly will succeed and flourish. In today’s world, with restricted resources, global interconnectivity and population pressures on energy, waste and water, the ability to do more with less has become an imperative for survival.

SIMS’ CORE BUSINESSES

Our core businesses contribute – Electronics Recycling – Global – Renewable Energy – In 2001, Sims to the closed-loop circular flow of E-Recycling, which operates under the entered the renewable energy market metals and electronics, creating name Sims Recycling Solutions (SRS), with a strategic investment in LMS new value from limited resources. is a global leader in electronics reuse Energy. That investment has grown and recycling across the globe. SRS into a 50% ownership of LMS, one of – Sims is the – Metals Recycling provides disposition services for all Australia’s premier landfill gas-to- world’s leading publicly listed types of retired electrical equipment energy and solar renewable energy metals recycler, encompassing to local, national and global customers companies that generates 395,000 the buying, processing and selling in a wide variety of business sectors. megawatt hours of base-load renewable of ferrous and non-ferrous 430,000 metric tonnes of electronics electricity annually. By capturing the recycled metals. 9.9 million metric are recycled annually by our facilities. landfill greenhouse gas emissions, LMS tonnes of secondary metals were Our worldwide network of certified abates more than 3.3 million metric sold in FY18. The metals recycling processing facilities, with no export tonnes of carbon (CO2-e) each year and activities are geographically mandates, reinforces our closed-loop provides a local renewable energy source diverse, with operations globally approach to responsible electronic for the community. including the United States, recycling. Australia and the United Kingdom. The nature of our business, our global Our network of processing – Municipal Recycling – In 2002, Sims reach, our leadership and the commitment facilities, many with deep-water expanded into curbside recycling in the of our employees all point to a future port access, is supported by an United States, with the creation of of sustainable innovation and growth. extensive number of feeder yards Sims Municipal Recycling. The operation

from which to source recyclable has grown to become a cornerstone ferrous and non-ferrous metals. of New York City’s recycling system. In total, the business processes and markets nearly 500,000 metric tonnes of municipal curbside material annually. We transform society’s waste into valuable resources. SIMSMM.COM 03 FROM THE CHAIRMAN

FROM THE CHAIRMAN

SUSTAINABILITY AND CORPORATE RESPONSIBILITY

“ Our Company’s purpose...put our planet first. We are convinced that by so doing, Sims will continue to prosper for the benefit of its shareholders, employees, the communities in which we operate, our suppliers and our customers.”

Sims FY18 results bear testimony to our Ensuring that our conduct in all appealing for women. Our approach to dedicated employees maintaining their jurisdictions aligns with the highest hiring is fair, our policies and working commitment to continually improving our ethical standards is a key priority for the environment result in all employees business processes, applying disciplined Board and senior leadership team. This feeling they are welcomed, and our deployment of capital, and ensuring that includes protecting the environment, remuneration is equal. We are service to our suppliers and customers fostering diversity, actively being involved committed to ensuring there is no remained at the highest standards; all the in our communities, and conducting our harassment in the workplace and that, while working more safely than ever business so we can adapt to changing as an organisation, we support our before in our Company’s 101 year history. markets and expectations. workforce throughout their careers at Sims. Reaching this milestone is no reason for Safeguarding the environment in which our Company to be complacent about the we operate continues to be a measurable Over the past twelve months, directors future. Ensuring that we have the right objective and our sustainability report visited eight operating sites and foundations for continued prosperity is a sets out where we are on that journey. witnessed first-hand our safety culture priority for the Board and senior Climate presents both challenges and in action. Safety is not just about leadership team. Building on our history, opportunities. In particular, as weather ticking the boxes, it is at the foundation we will continue to look at everything we events become more intense, our of everything we do, and this philosophy do through the lens of our Company’s facilities can be impacted. We are has to be embedded throughout the purpose which, put simply, is to put our assessing the vulnerability of all our organisation. We strive for zero harm planet first. We are convinced that by so locations, while capital spending to our employees and members of the doing, the Company will continue to evaluations include an assessment public. Fiscal year 2018 was the safest prosper for the benefit of its of the potential for climate impact. year in our Company’s history in terms shareholders, employees, the communities of both injury rates and severity of Growth in the ‘circular economy’ will in which we operate, our suppliers and our injuries. However, until we eliminate continue to provide more opportunities for customers. These groups are demanding injuries altogether, the Board and Sims to deploy capital so as to provide that organisations accept more management will continue to take attractive solutions for our customers. As accountability for the way they interact initiatives to improve our performance. awareness of our position within this with stakeholders and regulators, and ‘circular economy’ becomes better On behalf of the entire Board, I would governments are becoming more articulated, and more widely known, we will like to thank all of our employees for demanding in the way they interact with strive to attract talent to harness this their efforts over the past year, as well companies, not just in Australia, but in all potential. These more sophisticated as our suppliers and customers for the markets we serve. recycling solutions will create additional their support and trust. Our aim is to The importance of strong corporate opportunities, but it is also incumbent upon build upon the momentum achieved culture, and the role of boards in setting us to ensure there is minimal dislocation across the Sims Group over the past and monitoring culture, has never been in and disruption to our existing work force several years. caused by technological advances. sharper focus than is the case today. The Hayne Royal Commission and the Australian Given the many countries and nations in Prudential Regulatory Authority review of which we operate and employ, our work the Commonwealth Bank have highlighted force is quite diverse. Moreover, the the importance of a board’s understanding twelve members of our senior leadership of the cultural characteristics of their team in themselves represent six organisations, and in particular ensuring different nationalities. Gender diversity Geoff Brunsdon that company culture aligns with within our workforce is an area of Chairman community expectations. continuous focus, with women currently Sims operates in 18 countries and exports representing 20 per cent of our over to customers in more than 50 countries. 5,000 employees. We have been working hard to ensure our workplaces are more SIMS METAL MANAGEMENT LIMITED SUSTAINABILITY REPORT 2018 04

FROM THE CEO

COMMITMENT TO WORKPLACE SAFETY AND SUSTAINABILITY

“ Safety remains our number one priority, and our safety performance during fiscal year 2018 was a testament to that. It was our safest year on record”.

Safety remains our number one One of the initiatives that we’ve As we look toward the future, my goal is priority, and our safety performance introduced from the start of this fiscal to ensure that we future-proof our during fiscal year 2018 was a year is that all capital expenditure business for even greater profitability testament to that. It was our safest approval requests in excess of $5 million for years to come. We are thinking year on record, and we had an need to take into account the potential differently, and our corporate strategy ambitious goal of zero-harm. We’ve impacts of climate change. This simple will reflect that by placing a greater made several cultural improvements step means that we will instill an emphasis on social responsibility and throughout the Company to ensure a awareness of climate-change across the incorporating purpose further reduction in safety infractions, business as a standard operating -driven standards in our business but we still have room for improvement procedure and ensure that we are making practices. These changes will allow and will employ best practices across conscious decisions in terms of allocating us to strengthen our brand, increase the region to ensure that we can meet capital – but we can’t stop there. We need employee engagement and create our goal. to continue improving our use of an even bigger social impact. resources and participating in larger Similarly, sustainability is, and will Additionally, by establishing a shared initiatives that will demonstrate our continue to be, a cornerstone of our social purpose and standards, we are commitment to further sustainability. corporate strategy. Not only is it a able to create alignment among the guiding principle for our Company, but We collaborated with two organizations various business units. it is also at the heart of our business that are leading the charge in getting This team and I have invested a great model. Our business was impacted by people to think and act sustainably. Sims deal of time in developing a clear several climate-related incidents, was the title sponsor for the first ever operating philosophy that reflects who including the worst drought on record Global Recycling Day, an initiative created Sims is today and where we would like in New South Wales and Hurricane to help recognize and celebrate the the Company to be in the future. Harvey in Houston. This year, we importance that recycling plays in considered climate change risks and preserving our resources and securing opportunities in our enterprise risk the future of our planet. I was also invited management process. This allows us to join the World Business Council on to explore uncertainties and to Sustainable Development (WBCSD), which understand business implications is a global, CEO-led organization of more across possible future outcomes. than 200 leading businesses, where I will We have not identified any issues that have the opportunity to work with other are likely to have a material impact on leaders to accelerate the transition to a Alistair Field our profitability, and as a part of the sustainable world. Group CEO and risk management process, climate Managing Director risks are continuously updated as they evolve. FROM THE CEO SIMSMM.COM 05

GOVERNANCE

SUSTAINABILITY GOVERNANCE AND LEADERSHIP

“We aim to be the world’s safest and most responsible recycling company by striving to create a zero harm workplace for our employees; be an exemplary member of the communities in which we operate; and be responsible stewards of the environment.” – extract from the Board of Director’s Commitment to Safety, Health, Environmental, Community and Sustainability letter (SHECS).

For Sims, strong corporate – Strong Tone at the Top That – Sustainability is Embedded in Our governance and transparency are Reverberates Across the Organisation. Culture. SHECS is at the core of who the foundation of everything we do. Sims’ CEO Alistair Field has shown his we are and what we do. We aim to be the Our Board Members have signed a personal commitment to pursuing world’s safest and most responsible personal commitment letter and accelerating the transition to a recycling company by striving to create a promoting Sims’ sustainability sustainable world by joining 200 CEOs zero harm workplace for our employees; posture, which is recognized as a from leading global businesses, who being an exemplary member of the leading practice by the National like him are committed to working on communities in which we operate; and Association of Corporate Directors solutions to preserve our world as being responsible stewards of the and captures their unconditional members of the World Business Council environment. We demonstrated this support to maintaining a world class for Sustainable Development. through our progress against our 2020 SHECS program. See the Board’s sustainability goals which are highlighted The focus on sustainability is present Commitment to Safety, Health, in the metrics and performance section throughout our organization. The Environment and Community on our of the report. website at www.simsmm.com/ Executive Leadership Team shows its investors/governance. commitment through its practice of – Auditing and Assurance. We continue to discussing SHECS performance as raise the bar on our SHECS practices – Actively Engaged Board of part of its executive meetings and focusing beyond compliance with our Directors. In FY18, Board management meetings within their own global SHECS standards, through self- members visited 8 different businesses. SHECS matters are in turn assessments, monitoring of closures facilities and observed how each a standing topic at the operational of mitigation actions, and independent site puts Sims’ SHECS policies level during each facility’s daily “huddle assessments performed by Internal into action. These visits enable board” meetings. Audit and SHECS specialists. the Board to engage directly with employees and draw independent – SHECS Leadership Team and conclusions about the robustness Sustainability Council. The SHECS of the programs. Recognizing the Leadership Team and the Sustainability importance of SHECS, the Board Council provide assistance to senior has created the Safety, Health, management regarding the strategic Environment, Community and direction and development of Sustainability Committee, which SHECS initiatives. reviews progress made against the Company’s SHECS initiatives and performance.

Sustainability starts with active and engaged leadership and oversight. SIMS METAL MANAGEMENT LIMITED SUSTAINABILITY REPORT 2018 06

SUSTAINABILITY GOVERNANCE ORGANIZATION

The key elements of our sustainability governance structure are depicted in the figure below. In addition to the more formal SHECS Committee and Executive Leadership Team (ELT) meetings, this reporting structure provides extensive informal communication.

THE FIGURE BELOW DEPICTS SIMS’ SUSTAINABILITY GOVERNANCE STRUCTURE

Board of Directors Geoffrey N. Brundson, Chair

Board SHECS Committee Chief Executive Officer & James Thompson, Chair Managing Director Alistair Field

Executive Leadership Team

Other Functional SHECS Leader Business Leaders Leaders

Sustainability Council SHECS Leadership and Operations Representatives OUR CORE VALUES SIMSMM.COM 07

OUR CORE VALUES

At Sims we keep things simple. Our sustainability governance is built on a clear and direct reporting structure that communicates Company policies and guidance from the boardroom to the shop floor. Every employee understands the importance of SHECS.

The foundation of Sim’s culture is its safest year in our Company’s history in Transparency and Excellence in all core values of Safety, Integrity, terms of both injury rates and severity of endeavors enable Sims to leverage its best Respect, Transparency, Excellence, injuries. We have worked hard to develop a talent and ideas across the Company. and Social Responsibility. culture of safety throughout our Employees throughout the organization organization globally and we will continue champion a culture where information is Investment in the Company’s core and maintain our focus on safety. The openly shared and best practices are driven values binds its employees together, board, management and employees are across all of the Company’s businesses. across regions and responsibilities, fully engaged in, and committed to, making and helps the Company strive toward starts at the top, as Sims a safe place to work - we believe that Social Responsibility achieving its goals. They set the evidenced by the Board signing the Board even one incident is one too many. standard for Sims’ interactions with of Directors’ Commitment to SHECS. This its employees, customers, Integrity and Respect underly everything leadership support is critical to the communities and other stakeholders. Sims does. The Company’s personnel know welfare of the Company’s people and the that they are expected to act with communities in which we operate, and is remains our number 1 Safety integrity and to respect those around essential to the long-term growth of the priority. Safety is not just about them at all times. The goal is for employees Company’s business. ticking the boxes, it is at the to be able to go home every day proud of foundation of everything we do, and Both the Board of Directors and CEO have their achievements, and secure in the this philosophy has to be embedded made powerful pledges to Safety, Heath, knowledge that their contributions and throughout the organisation. We Environment, Community, and Sustainability ideas are valued. strive for zero harm to our with personally signed commitment letters. employees and members of the These can be found at: public. Fiscal year 2018 was the https://www.simsmm.com/investors/ governance/ These commitments are imbeddded in our global SHECS polies. Our core values drive our commitment to sustainability. SIMS METAL MANAGEMENT LIMITED SUSTAINABILITY REPORT 2018 08

GLOBAL SHECS POLICIES

Our dedication to sustainability is captured in our Global SHECS policies.

Safety and Health of our personnel and Environmental concerns (other than DRIVING SHECS anyone visiting our facilities is our primary energy, carbon emissions and biodiversity) concern. We aim for a zero-harm workplace. such as the sustainable use of resources; PERFORMANCE reducing the impact of modern life on Energy and Carbon Emissions. Sims Sims’ greatest assurance that SHECS water, air, and soil; and minimizing waste appreciates the need to reduce the principles, and the sustainability must be incorporated into day-to-day energy usage and carbon footprint of its mindset they encompass, have been operations in order the protect the day-to-day operations, and strives to embodied at the operational level is natural environment, and Sims is do so. gained through its facility managers. committed to doing so. Biodiversity is key to a healthy It is the responsibility of our facility must be respected, environment, and Sims recognizes the Human Rights managers to instill their personnel with promoted and upheld by Sim’s global importance of preserving habitats and a commitment to everything SHECS. operations. Sims’ recognizes its role and ecosystems to ensure biological diversity Additionally, every manager must responsibilities within its sphere of for future generations. formally commit and confirm that their influence and endeavours to avoid being is more than just the locations operations comply with Company Community complicit in or encouraging any activities in which we operate, it includes also our standards. This process includes that might result in human rights abuses. stakeholders and the world at large. Sims identifying areas that require is committed to being a respected and These global SHECS policies are improvement, producing detailed responsible corporate citizen by engaging translated into daily operational activities action plans that aim to bring the sites in the honest and ethical conduct of through the application of our Global into conformance, and following-up our business. SHECS Standard Operating Policies. until all issues have been addressed. These set the minimum standards by Internal Audit’s assurance is the last, which we run our facilities. but not the least, piece in the Our SHECS management system enables governance process. a universal approach across our sites and It assesses conformance at the drives our SHECS performance. facility level with our global SHECS These policies can be found at requirements and standard operating www.simsmm.com/investors/governance procedures. Internal Audit utilizes the DRIVING SHECS expertise of independent SHECS leaders PERFORMANCE in these engagements, who, in turn, gain exposure to best practices across regions and businesses.

Board & CEO SHECS Commitment Commit ELT SHECS Commitment

Global SHECS Policies Communicate

Global SHECS Standard Operating Procedures

Implement

Plant Manager Internal Audit & Assurance Letters SHECS Assessments

Review and Improve Core Values

STRATEGY SIMSMM.COM 09

STRATEGY

SIMS AND THE CIRCULAR ECONOMY

The circular economy, as opposed to the traditional linear economy of “make, use, dispose”, is driven by keeping resources in use for as long as possible, extracting the maximum value from those resources while in use, and then recovering and regenerating products and materials at the end of their useful life. Recycling is an intrinsic part of the circular economy. Sims is committed to helping to propel our world from the linear to the circular, which will reduce pressure on a planet dealing with climate change, growing populations, and finite natural resources. The circular economy is our best hope for the future, and Sims is proud to be a leader in it.

We are proud of our track record of SIMS AND THE UNITED NATIONS SUSTAINABLE sustainability leadership and we strive to continually raise the bar to do even DEVELOPMENT GOALS better. We leverage our expertise in innovation and technology to enhance our The United Nations Sustainable By aligning our business strategies contribution to the circular economy. Development Goals (SDGs) provide a with the SDGs, not only can we roadmap for current and future maintain and strengthen our license Our data demonstrates consistent generations worldwide. As a global to operate, but we can also create improvements compared to our baseline company, Sims’ core businesses allows us value for society and improve the from 2014, not only in safety, but also in to make a wide-ranging contribution to the quality of life globally. our key environment impact areas: waste, achievement of the 17 SDGs. We will water, and use of renewable energy. continue to raise awareness of the SDGs in our business operations and ensure our business activities contribute to a healthy society and sustainable planet. SIMS METAL MANAGEMENT LIMITED SUSTAINABILITY REPORT 2018 10

INNOVATION AND TECHNOLOGY

– Maximizing Circular Flows. – Implementing New Technologies – Continuous Improvement of As a metals recycling company, shipping For Material Recovery. Operations. measurable amounts of metallic Sims continues to invest in new The Continuous Improvement material to landfills for disposal technologies which create greater Programme at Sims is an represents an obvious opportunity to yields and purer products from our important driver to deliver reduce waste generation and waste- material recovery plants. This increases process improvement and business related costs. Sims has dedicated a and diversifies the products Sims excellence. We are working across great deal of resources, R&D, and time offers. This diversity is important all business units to redesign to identifying the best practices and to Sims in the context of growth workflows so we can deliver our technologies for extracting ever more and also in managing changing products and services faster, metal from our waste streams. customer requirements. more efficiently and with higher quality. Through this programme, We also work to provide innovative we’ve been able to leverage Lean recycling solutions to our customers. Six Sigma techniques to create In conjunction with our plastic resin efficiencies from the yard to the partner, we are producing a world Extracting more corporate office. The use of the class recycled content plastic supply metal from our DMAIC (define, measure, analyze, for OEMs to engage in the full circular improve and control) process economy, manufacturing parts waste streams. has allowed us to ensure that from recycling plastic to produce the improvements we made are new equipment. sustainable and that our processes are fit for purpose.

THE CLOSED-LOOP RISK MANAGEMENT SIMSMM.COM 11

RISK MANAGEMENT

At Sims, our view of risk management starts at a global strategic level, and then drills down to concrete risks that could impact specific parts of our operations. At a global level, we focused on the World Economic Forum’s Global Risk Review. In particular, we noted that many of the top risks in that report related directly or indirectly to climate change.

ENTERPRISE RISK MANAGEMENT

Sims’ Enterprise Risk Management It gives ownership of the identification We believe that effective process addresses risks and and management of risk to business units identification and management of opportunities that could impact the and is supported and reinforced through our risks and opportunities is key to Company’s strategic objectives. risk discussions and appropriate actions supporting the achievement of Sims’ at the Group and Board level. As a part of strategy and related objectives. Sims adopted an Enterprise Risk this process, we analyze market, industry Management framework and process to information as well as global risk trends to facilitate the identification, management assess current and emerging risks and and reporting of key risks and opportunities facing the Company. Risk opportunities. Our risk management mitigation plans are developed and framework is an enabling process that is actions are taken to address any risks formalized and understood across Sims. beyond Sims’ tolerance level.

KEY ENTERPRISE RISKS

Cyber-security threats Very Likely not prevented or monitored Loss of NonFe outlets Legend:

IT risks Insufficient IT disaster Failure to find new or loss recovery plans Non-Compliance / Cost of compliance with HR risks of customers emerging laws (environment, privacy) SHECS/ Climate Change risks Climate Change Impact on Ops Finance risks Probable Poor IT Injury and damage infrastructure Market / Trading risks due to extreme Loss of right to Loss of Fe outlets operate Regulatory risks weather events Competition – New Entrants Workplace fatality ASR waste classification Risk Likelihood Possible Succession planning and cost of disposal Failure to attract Failure to communicate skilled talent with shareholders

Inappropriate allocation of Not Likely Capital funding

Low Moderate High

Risk Impact SIMS METAL MANAGEMENT LIMITED SUSTAINABILITY REPORT 2018 12

MATERIALITY ASSESSMENT The enterprise risk management process was supplemented by a materiality assessment to identify the Environmental, Social and Governance (ESG) issues relevant to Sims’ business and its stakeholders’ interests. The process involved a combination of peer benchmarking, and engaging internal and external stakeholders. The chart below depicts the most important issues noted from the materiality assessment performed.

THE FIGURE BELOW DEPICTS SIMS’ MATERIALITY ASSESSMENT - 25 MOST IMPORTANT ISSUES

4.9 Workplace Regulatory compliance Safety in operations Supply Chain Product quality 4.7 Governance Ethics and integrity Quality of inbound Environment materials Safety in barging Community Potential for fires in yards

4.5 Product Safety in logistics/ Noise, dust, air, water discharges transport Employee exposure & health Staff recruitment & Product data security development Transparency/accountability 4.3 Waste from operations Product use Sourcing of incoming Storm/surface water metals/waste Air emissions from operations 4.1 Privacy & security Product end of life

3.9 Diversity & inclusion ANCE FOR SIMS BUSINESS SUCCESS T Other sourcing Energy consumption 3.7 IMPOR Board Structure Community relations

3.5 3.5 3.7 3.9 4.14.3 4.54.7 4.9

SIGNIFICANCE OF SIMS IMPACTS

Bubble size indicates how well Sims’ programs control the risk (bigger = better controlled)

CLIMATE CHANGE RAMIFICATIONS

The Company recognizes that climate - Inability to maintain standard These risks are currently not change could have meaningful impacts on operational hours at facilities expected to have a material the financial performance of the Group over [extreme temperatures]; impact on the Company’s financial time and has begun the process of performance. However, effective - Docks, material handling and the identifying key risks and, where possible, from July 2018, all capex approvals transportation of products commenced action to mitigate their impact. over a $5 million threshold value [intense rain and wind]; require consideration of the The key risks identified centre around the - Access to reliable supply of electricity impact of climate change as a potential for increased, and more extreme, [extended heat waves]; and standard practice. weather events impacting: - Reliable operation of critical data - Health and safety issues for storage sites [flooding, extended employees operating on sites heat waves]. [extreme temperatures]; METRICS AND PERFORMANCE SIMSMM.COM 13

METRICS AND PERFORMANCE

VALUING SIMS’ FY18 PERFORMANCE IMPACT ON SOCIETY HIGHLIGHTS

Sims aims to be net positive – to Our performance data demonstrates have an enterprise-wide positive consistent improvements compared to impact on society. Based on our our baseline from 2014, not only in safety, analyses over the years, our circular but also in our key environmental impact economy business model allows us areas: energy, waste and water. While we to do just that. are proud of our track record of sustainability leadership, we are During FY18, we contracted with continually pushing Lifecycles, an Australian firm for improvement. specializing in life cycle analysis, to assess Sims’ core business model in comparison to the production of steel from virgin materials. The high-level model developed by Lifecycles, using average global data from ecoinvent, suggests that “ the collection, FY14-FY18* PERFORMANCE HIGHLIGHTS sorting, pre- processing and – Total recordable injury frequency rate smelting of steel (TRIFR) decreased 55% scrap results in – Electricity use decreased 19% greenhouse gas emissions that are – Fleet fuel consumption decreased 14% 77% lower than the – Automotive shredder waste (ASR) greenhouse gas decreased 18% emissions associated – Water use decreased 24% with producing virgin steel from – Renewable energy grew to 4% a blast furnace.” – CO₂ emissions decreased 8% We are proud to operate a business that reduces the use of natural resources. *Values are absolute. Figures represent comparison of FY18 to FY14. SIMS METAL MANAGEMENT LIMITED SUSTAINABILITY REPORT 2018 14

HEALTH AND SAFETY

This year was the safest year in Sims’ history.

Employee health and safety is our goals to achieve a TRIFR of less than 1.0 Significant injury and incident prevention. highest priority. Sims is on a journey and an LTIFR of under 0.20 by the year Sims tracks injuries and incidents to become world-class in health and 2020. While we recognize these goals as including first aid, near misses, property safety. We have worked hard to being world-class benchmarks, we are not damage, motor vehicle incidents, etc., develop a culture where employees solely reliant upon them to measure our through a global safety incident reporting are fully engaged in, and committed safety performance and culture. tool called VelocityEHS. During FY18, Sims to, making Sims a safer place to recorded a total of 1,677 incidents, 1,162 work. We continue to reduce the As depicted in the injury rate trend charts near misses and 6,676 hazard number of injured employees – even on the following page, our efforts are identifications. Our SHECS organization one incident is one too many. During showing results. Over the last 10 years, analyzes the data to understand how well FY18, more than 80% of Sims’ there has been a significant reduction in our systems are working, maps early locations were free of reportable both recordable and lost time injuries. trends, and ultimately gets a better injuries for more than a year. In FY18, our LTIFR (# of LTIs x 200,000/ understanding of our key safety risks. In exposed man-hours) was 0.25 compared FY18, 7% of all incidents and near misses According to data from the 2016 to 0.27 in FY17, representing an eight had the potential to have resulted in a United States Bureau of Labor percent reduction in Lost Time Injuries. serious incident or fatality. This is down Statistics, the average injury/illness Our MTIFR was down also and, overall, our from the 9% identified in FY17. recordable rate (per 200,000 hours Recordable Injury Frequency Rate was worked) is 4.2 for metal recycling. down from 1.3 in FY17 to 1.2 in FY18. Risk Assessments. We implemented a By comparison, Sims’ injury and global platform for recording and tracking During FY18, Sims implemented a illness rate is 1.2. Risk Assessments. The platform allows number of global safety initiatives sharing of information and the ability to Over the past five years, we have aimed at achieving world-class safety track risk registers throughout the reduced our recordable injuries by performance. Some recent highlights organization. In FY18, Sims focused on 55 percent; our injuries resulting in include: implementing best practice risk control lost work days by 54 percent, and measures on machine guarding across all our performance continues to Safety Leadership Certification its major operations. improve. Our goal is zero injuries – Programme. Assuring our management on and off the job – and we will never team is well versed in all aspects of be satisfied until we achieve that. safety, we continued with our Safety The nature of metal recycling Leadership Certification training involves large machinery and heavy programme in FY18, requiring managers, objects in close proximity of workers supervisors and leads to successfully and contractors. No work complete a three-day classroom and commences until a task has been in-field practical certification programme. thoroughly risk assessed and fully Education: Education and employee understood by all personnel involved. engagement remain an important Should a near miss or unsafe cornerstone of our safety culture. situation occur despite these Monthly videos, with training packages efforts, the activity immediately and self-audit protocols, were distributed stops until the root cause is to Operations Managers. Videos cover understood and the issue many areas of safety on the job and in the addressed. Our goal is simple: home, and topics have included confined zero-harm; no one gets hurt, and space, machine guarding, fall prevention, you go home as you arrive. We utilize hot work, and mobile equipment. In addition a number of metrics, such as the to these global safety initiatives, each Lost Time Injury Frequency Rate operating region undertook a number of (LTIFR), Medically Treated Injury Rate local safety initiatives focused around (MTIFR), Restricted Duty Cases monthly training topics. (DART), and the Total Recordable Injury Frequency Rate (TRIFR). We have set aggressive corporate PERFORMANCE: SAFETY AND HEALTH SIMSMM.COM 15

TOTAL RECORDABLE INJURY FREQ. RATE LOST TIME INJURY FREQ. RATE (TRIFR:TRI 200,000/man-hours) (LTIFR:LTI 200,000/man-hours)

8.0 1.5 7.5 -55% FY14-FY18 -54% FY14-FY18 7.0 1.30

6.2 6.0 1.10

1.0 5.0 4.8 0.90

4.0 0.72 3.5 3.3 0.64 3.0 0.54 0.56 0.54 3.0 2.8 2.7 0.5 0.45 2.2 0.38 2.0 1.4 0.27 1.3 1.2 0.25 1.0

0.0 0.0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

INJURIES RESULTING IN LOST WORKDAYS TOTAL DAYS AWAY FROM WORK

60 3000 -55% FY14-FY18 -80% FY14-FY18 2425 46 45 2250

1681 31 30 1500 25 1208 21 1041

14 750 15 13 507 333

0 0 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18

Sims’ 2020 goals are based on the 200,000/man-hours calculation shown above. SIMS METAL MANAGEMENT LIMITED SUSTAINABILITY REPORT 2018 16

ENERGY AND GREENHOUSE GAS

In 2009, Sims set the target to reduce its Scope 1 and 2 carbon emissions by 15%, and achieved that in 2012. In 2015 Sims established new targets to reduce carbon emissions by an additional 10% by 2020 with a 2014 baseline.

In 2010, Sims formulated an energy Fuel and Electricity As part of our 2020 targets, we aim for and carbon policy (available on the a five percent consumption of our energy Total energy use for the Group in FY18 Company’s website) and a series of to be from renewable resources, using a was 1,935,846 gigajoules (GJ), an increase energy reduction initiatives. These 2014 baseline. of three percent from FY17. The major initiatives included, among others, reason for this trend was an increase in During the period FY14-FY18, we reduced full replacement of inefficient operational activity, including additional electricity consumption by 19%, or shredder motors, transition processes to reduce waste streams. 170,133 GJ. to energy efficient lighting, more fuel efficient trucks and mobile Fuel (diesel used for transport and mobile equipment, route optimisation equipment) was the major component at and driver education. 1,139,890 GJ (58.9%), followed by electricity - used to power our shredder These initiatives, supported by motors- at 624,750 GJ (32.3%), pipeline energy, waste and water reduction natural gas – used for heating – at 70,992 teams in all regions, saw the Company GJ (3.7%),with petrol and LPG following at achieve its 15% reduction target in 18,097 GJ (<1%). The remaining source of 2012. The Company then developed a power came from renewable energies at new set of 2020 sustainability goals, 82,117 GJ, representing over 4% of our which have been driving us forward. total energy use.

ELECTRICITY CONSUMPTION ABSOLUTE FUEL CONSUMPTION ABSOLUTE (GJ IN 100 THOUSANDS) (GJ IN MILLIONS) -19% -14% FY14-FY18 FY14-FY18 % Change 1200 2.00 1.86 1053 950 923 1.52 877 1.47 1.50 1.40 791 1.34 800 707 1.16 637 666 1.05 1.07 1.00

400 0.50

0 0.00 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

ELECTRICITY CONSUMPTION NORMALISED (GJ/MT) FUEL CONSUMPTION NORMALISED (GJ/MT)

(000MT) -10% 2%* (000MT) -10% 8.6% 2020 Goal FY14-FY18 2020 Goal FY14-FY18 75 150

72.60 72.38 72.31 70.91 128 128 69.87 69.85 69.43 70 125 117 114 116 111 107 65.33 104 65 100

60 75 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

*Increase from FY14-FY18 is based on equivalent energy sources. The FY14 numbers did not include renewable energy or pipeline natural gas. ENERGY AND GREENHOUSE GAS SIMSMM.COM 17

CARBON RISK CO₂ EMISSIONS GREEN ENERGY

The energy the Company uses to collect, Total Group CO₂ emissions (CO2-e) LMS Energy Pty Ltd, the renewable process and distribute its products gives for FY18 were 223.7 metric tonnes energy company of which Sims owns rise to carbon emissions. These emissions (MT). However this number includes 50%, entered its 22nd year of business are known as Scope 1 emissions when they CO2-e from renewable energy in FY18. LMS is a national leader in landfill are generated directly by our equipment, sources and liquified natural gas gas to renewable energy and an innovator such as trucks and mobile equipment. that were not included in prior in solar on landfill technology. LMS once When the emissions are a result of year numbers. again achieved record results in FY18. externally provided power usage, such as The net FY18 increase was Operating 21 renewable power generation electricity, they are referred to as Scope 27% over FY17, which was in part also projects across Australia, a record of 2 emissions. due to a production volume increase 395,000 megawatt hours of renewable The Company’s approach to managing of 13%, plus the addition of secondary energy was generated by LMS in FY18. This energy and related carbon emissions is material recovery processes designed resulted in the creation of nearly 395,000 detailed in its Corporate Environmental to capture valuable commodities out Large-scale Generation Certificates and Energy Policies, available on the of the waste streams. (LGCs). Today, LMS remains the largest Company’s website. As a participant in the bioenergy generator of LGCs in Australia. This is the circular economy Carbon Disclosure Project (CDP) since tradeoff: the need to use increased With 41 carbon abatement projects 2006, and the Down Jones Sustainability electricity in order to capture more accredited under the Emission Reduction Index since 2008, as well as several value from the waste streams. Fund, LMS has also been issued with more others, the Company is committed to than 50% of all Australian Carbon Credit its carbon emissions. Units under the landfill gas methodologies. In FY18, LMS achieved an estimated 3.3 million metric tonnes (CO2-e) of carbon abatement across all of its activities. CO EMISSIONS (MT) FY18 saw LMS’ fully owned subsidiary (000MT) -8% FY14-FY18 company Joule Energy commission the 350 Northern Adelaide Waste Management 307.3 Authority (NAWMA) solar generation 300 project adjacent to the landfill. This 256.1 253.7 242.9 project is the first in Australia to combine 250 226 223.7 base-load landfill gas and solar, and solar 157.4 200 187.6 alone has successfully generated over 138.5 176.2 1,000MWh’s. Joule Energy has also 142.5 136.0 150 120.8 secured the solar rights for three new 143.5 105.4 108.9 projects in South Australia, Queensland 100 and New South Wales. 149.9 117.8 50 111.1 106.9 105.2 82.2 67.3 80.2

0.0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Scope 1 Scope 2

Renewable energy grew to 4% of total energy use. SIMS METAL MANAGEMENT LIMITED SUSTAINABILITY REPORT 2018 18

WASTE MANAGEMENT ASR WASTE PRODUCED ABSOLUTE (MT IN MILLIONS) Automotive Shredder Residue -18% (ASR) Waste FY14-FY18 2.0 1.92 ASR waste is an inherent part of the products we purchase for recycling. Volumes of non-recoverable materials 1.57 are expensive to process, dispose of, and strictly controlled through quality control 1.5 1.33 mechanisms, as well as our purchasing 1.28 structure on incoming materials. 1.22 1.05 During FY18, the Company generated, at 0.99 1.03* a global level, 1,052,349 metric tonnes of 1.0 waste, which was a 4% increase over FY17. The significant contributor to this change was a 13% increase in production volume. Waste was minimized by focusing on 0.5 purchasing materials with less inherent waste and increased ability to separate materials for beneficial uses.

As part of our 2020 targets, we aim to 0 reduce waste intensity by 10% against FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 the FY14 baseline. Our year-to-date progress (from FY14) is that we have decreased waste by 34%. This is due to an increased focus on extracting additional commodities, moisture content monitoring, and smart ASR WASTE PRODUCED NORMALISED (MT/MT) watering systems. -10% -34% 2020 Goal FY14-FY18 400 369.4

350 320.4

300 270.6 262.1 248.7 251.7 250 254.8*

200 172.8

150

100

0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

*FY17 values have changed from the prior year’s Sustainability Report because they did not include all sites. The new values represent all of Sims. WASTE MANAGEMENT SIMSMM.COM 19

WATER CONSERVATION WATER CONSUMPTION ABSOLUTE 3 (M IN MILLIONS) -24% Sims continues to use a very small FY14-FY18 amount of water, with only 540 1.20 megaliters (540,000 cubic meters) 1.12 consumed globally. This represents an increase of 8.4% when compared to FY17, 1.00 and is due to an increase in production volume. Some of our water reduction 0.85 initiatives included: high-pressure water 0.80 0.76 0.71 atomizers for dust control, smart water 0.68 and foam systems for shredder dust plus temperature control, as well as better 0.60 0.53 0.54 utilization of on-site captured run-off 0.50 water. 0.40 From FY14 to FY18, Sims reduced water consumption by 24%, saving

170 megaliters (170,000 cubic meters). 0.20 As part of our 2020 targets, our goal is to reduce water intensity by 10% on a FY14 baseline. To date, we have achieved a five 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 percent reduction in water intensity.

WATER CONSUMPTION NORMALISED (M3 IN MT) -10% -5% 2020 Goal FY14-FY18 90

80 77.40

60 59.06 57.65 58.66 57.20 56.51 54.30 54.14 50

0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 WASTE MANAGEMENT AND WATER CONSERVATION SUSTAINABILITY REPORT 2018 20

COMMUNITY ENGAGEMENT

Our operations bring economic benefits The icons on this page correlate the number of community to the communities where we work by projects with the United Nations Sustainable Development Goals employing people, buying services and (SDGs). In the future, we plan to strengthen this alignment and products, and paying taxes. Our focus is continue to support and publicize the SDGs. to deal openly and transparently with our host communities and work with anyone who is impacted by our operations. We want to be a trusted partner to all TOP 10 affected communities throughout the life cycle of our operations. In FY18, Sims engaged in more than 270 community projects and sponsorships around the globe. Sims employees dedicated countless hours in support of causes they care about. We encourage 65 COMMUNITY 61 COMMUNITY our employees to volunteer and give PROJECTS PROJECTS hands-on support to sustainable projects, for which we provide financial assistance. Sims has enabled thousands of employees around the world to contribute to society in a meaningful way. Below are highlights of some of these activities from FY18: – In South Australia Sims worked with 28 COMMUNITY 17 COMMUNITY 17 COMMUNITY Keep SA Beautiful (Kesab) to support PROJECTS PROJECTS PROJECTS local environmental awareness and education by creating a web site for schools providing education on metal recycling processes, and a newsletter for community engagement on sustainability activities. – In the U.S. Southwest Sims has an ongoing collaborative project with area groups organizing community 11 COMMUNITY 11 COMMUNITY 8 COMMUNITY engagement events and supporting a PROJECTS PROJECTS PROJECTS community vegetable garden. – In the U.S. and Europe, Sims employees participated in Earth Day activities to educate the public on how they can incorporate recycling into their everyday lives. – In Europe Sims’ and its employees have: donated refurbished laptops for community use, and supported local 8 COMMUNITY 5 COMMUNITY service organizations such as fire PROJECTS PROJECTS brigades, support lines, education centers, and programmes that provide opportunities and support for people with various disabilities. DIVERSITY AND TALENT SIMSMM.COM 21

DIVERSITY AND TALENT

Sims promotes an inclusive culture through targeted recruitment and educational initiatives.

In FY18, Sims conducted a Sims continues to deliver global Diversity In both Australia and the UK, Sims comprehensive review of its global, and Inclusion training with an emphasis on successfully complied with the Australian regional and local benefit local execution through its Respect & Workplace Gender Equality Agency and the programmes to ensure that Sims’ Inclusion @ Sims educational series. UK Gender Pay Equity, reporting policies are compliant with its Thinking globally and acting locally allows requirements respectively. Additionally, diversity standards. As a result, Sims to set the tone for global the Australasian region has been Sims adopted a more inclusive governance, while adhering to the committed to attracting and developing Parental Leave Policy that legislative guidelines and requirements in talented candidates through its Cadet supports birth mothers, birth each country. The Company also tracks, and Graduate Programme. fathers and adoptive parents. monitors and measures diversity Since reinventing the programme in 2012, statistics for all applicants to determine the Cadet and Graduate Programme has Additionally, in this past year in future recruitment targets. North America, the Company been a key initiative for engaging talented launched Women Working @ Sims, a Sims is working to increase diversity female employees. More than 36% of the series of focus groups designed to across its business units globally. In the candidates to date have been female, and help inform Sims’ approach to United Kingdom, Sims supported several 60% of those participants have been attracting and retaining qualified recruiting events to attract qualified promoted to more senior positions. women in a competitive industry. female candidates for its Trainee The Australasian region is also investing The focus groups were expanded to , such as the Management Programme in its current employees via the Emerging all regions and provided attendees British Forces Resettlement Services Leaders Programme. To date, several with a forum to share information career fair. Currently, 33% of the talented female employees have on the female experience at Sims. programme’s participants are women, participated in this initiative and have This feedback is being used to including Lisa Whitmore, a former received quality training, access to inform the Company’s future Sergeant in the Royal Air Force. Lisa invaluable mentoring and the provision of diversity and inclusion tactics. began working for Sims in March 2015 as a tailored development plans to facilitate Transport Administrator, and 18 months further growth and development. The later she entered the Trainee Management Emerging Leaders Programme is scheduled Programme. With an expected completion to launch in the North America and UK date of November 2018, Lisa credits the regions in the coming fiscal year. Trainee Management Programme for allowing her to transition to civilian life, while building the additional skills she needs to advance in her career at Sims.

33% 36% FEMALE PARTICIPANTS IN FEMALE CANDIDATES IN THE TRAINEE MANAGEMENT THE CADET AND PROGRAMME GRADUATE PROGRAMME SIMS METAL MANAGEMENT LIMITED SUSTAINABILITY REPORT 2018 22

EXTERNAL RECOGNITION

We are pleased to have recently received external recognition of our sustainability efforts by a growing Joseph Cody Presented number of leading independent organizations. with ISRI’s Safe Driver of the Year Award Sims Metal Management driver – MSCI ESG Research Rating: – The Conference Board: In a logged 44 years of safe driving In July 2018, Sims earned the comprehensive research report called At the Institute of Scrap Recycling highest (AAA) rating from MSCI ‘The Seven Pillars of Sustainability Industries (ISRI) 2018 Convention, ESG Research LLC, and is the only Leadership’, The Conference Board Joseph Cody of Sims Metal company in the steel benchmark highlighted Sims’ Board of Directors Management was presented with group with an ESG rating of AAA. Commitment Letter as a best-in-class the ISRI’s Safe Driver of the Year example of Sustainability Leadership. – Dow Jones Sustainability Index: Award for completing 44 verifiable The Company has participated – New Book (“Sustainability – What It Is years of safe driving. in the prestigious Down Jones and How to Measure It”): A new book Sustainability Index for nine published by DeGruyter in October 2018 “We at Sims Metal Management consecutive years, where, since features Sims’ Board of Directors’ congratulate our long-time driver, 2012, we have been an Index involvement in – and commitment to – Joseph Cody, for this prestigious Component. sustainability. award,” says Vispi Patel, General – Carbon Disclosure Project: - World Business Council on Sustainable Manager of the West Region of The Company was one of the Development: In 2018, Sims CEO Sims Metal Management. “Joseph first to participate in the Carbon Alistair Field joined approximately 200 exemplifies our commitment to Disclosure Project (CDP) and other global CEOs as a member of the safety. We are honored both by 2018 marks Sims 13th year of WBCSD. This membership will enable Joseph’s commitment to safety, participation in this leading Sims to work with other businesses demonstrated by his vigilance both carbon index. to accelerate the transition to a on and off the road, and by his sustainable world. commitment to the company. Joseph not only is exemplary by his record of safe driving but also by his willingness to share what he In 2018, Sims joined the World Business has learned with others in his 44 Council for Sustainable Development years with the company.” Cody is a third generation Sims Metal Management employee. His father was an account manager and his grandfather was a crane operator at the same location that he has worked at for 44 years in Sacramento, California. OUR PATH FORWARD SIMSMM.COM 23

OUR PATH FORWARD

2020 Goals equipment in our yards. We will continue to expenditures in excess of $5 million to report on our progress annually. take into consideration the impact of We established our first set of climate change. long-term sustainability goals in The Path Forward FY09. These were aggressive As we approach 2020, we are pleased with Sustainability is, and will continue to be, a targets for energy, water and waste the progress we have made on the cornerstone of our corporate strategy. reduction and, as FY15 approached, sustainability goals we set in FY15. During At Sims, sustainability and corporate we exceeded those goals. At that the coming year, we will start to plan for a responsibility are not activities we pursue time, we set a new round of goals – new set of long-term sustainability targets separately from our core businesses; these based on a FY14 baseline for 2020. that will drive the Company’s progress in concepts are fully integrated into our The focus of these goals is on the protecting the environment and the health strategy and deeply ingrained in our culture. Company’s most material and safety of employees, customers and environmental and societal impacts: Our core businesses have always supported the communities where we live and work. We petroleum, electricity and water the closed-loop circular flow of metals and know there is still much to be done. usage, and waste production. While electronics to continually extract value. We In today’s world, with restricted resources, we are pleased to report that we are are universally recognized as an international global interconnectivity and population on track to meet or exceed the leader in the transformation of discarded pressures on energy, waste and water, the majority of our 2020 sustainability consumer products into valuable secondary ability to do more with less has become an goals, there are areas where we resources. Thus, Sims has always been at the imperative for survival. More than ever, need to sharpen our focus. We are center of the circular economy – recovering there is an urgent need to address global committed to do so. and recycling products and materials to sustainability issues. Business as usual is ensure maximum value and minimize waste. The 2020 targets (normalised not an option. Growth in the circular economy will continue against production volume) include a to provide opportunities for Sims to deploy As the world comes to grips with climate 10% reduction in fuel consumption capital so as to provide attractive solutions change and a rapidly surging middle class, (Scope 1), a 10% reduction in for our customers. pressure on resources will continue. This consumption of electricity, and a presents an even stronger business case move towards obtaining 5% of our Every year we systematically review and for recycling. The nature of our business, our energy use from renewable sources assess risks to our business. This year global reach, our leadership and the (Scope 2). Other targets include a we started evaluating the risks and commitment of our employees all point to a 10% reduction in water consumption, opportunities climate change may have future of sustainable innovation and growth. a 10% reduction in waste generation, on our operations. We have implemented Moving briskly toward embracing circular and a 100% ban on the idling of mobile a process that requires all capital economy principles is the road to value creation for tomorrow’s leaner, fitter, more SIMS 2020 SUSTAINABILITY GOALS* resilient, and transparent company. We are progressing on this journey with haste. FLEET ENERGY TRANSPORTATION EFFICIENCY No idling in yards: Renewable energy: 100% 5% Fleet petroleum: of total energy use 10% reduction 10% Electricity: reduction

WASTE AND PEOPLE WATER RECYCLING USE <1.0 Total Recordable 10% Injury Rate 10% reduction ASR Waste to Landfill: 10% reduction

*FY14 Baseline and normalised by production volume OUR PATH FORWARD SIMSMM.COM 23

OUR PATH FORWARD

WASTE AND PEOPLE WATER RECYCLING USE <1.0 Total Recordable 10% Injury Rate 10% reduction ASR Waste to Landfill: 10% reduction

*FY14 Baseline and normalised by production volume ALIGNMENT WITH THE GLOBAL SIMSMM.COM 25 REPORTING INITIATIVE

GRI GRI DESCRIPTION PAGE 400 Social 401 Employment p.00, 21 402 Labor/Management Relations N/A 403 Occupational Health and Safety p.14-15 404 Training and Education p.21 405 Diversity and Equal Opportunity p.21: See www.simsmm.com/investors/governance 406 Non-discrimination p.21: See www.simsmm.com/investors/governance Freedom of Association and 407 N/A Collective Bargaining 408 Child Labor N/A 409 Forced or Compulsory Labor N/A 410 Security Practices N/A 411 Rights of Indigenous Peoples N/A 412 Human Rights Assessment p.08: See www.simsmm.com/investors/governance 413 Local Communities p.08,20: See www.simsmm.com/investors/governance 414 Supplier Social Assessment N/A 415 Public Policy See www.simsmm.com/investors/governance 416 Customer Health and Safety p.08: See www.simsmm.com/investors/governance 417 Marketing and Labeling N/A 418 Customer Privacy N/A 419 Socioeconomic Compliance N/A SIMS METAL MANAGEMENT LIMITED ABN 69 114 838 630 SIMSMM.COM