CSR Report 2015 Mitsubishi Materials CSR Report 2015 2 Contents

2015

CSR Report CSR

Materials

Mitsubish i For further information, please contact us at: 20 E-Mail：[email protected] For People, Society and the Earth 1 5 Contents

3 Editorial Policy 4 The Process of Compiling this Report For People, Society and 5 Top interview Our Focus

9 1 For the recycling and reuse of metal resources the Earth Making even more effective use of urban mines 13 2 Our Sixth Stakeholders’ Meeting Recycling from global urban mines

15 2014 Highlight 17 The Mitsubishi Materials Group at a Glance 19 Business Summary 21 Long-term management policy and medium-term management plan 23 The Mitsubishi Materials Group’s approach to CSR 25 Initiatives on Material Issues 27 Activities during ﬁscal 2015 and priorities for the future

Material Issues 1 Resources and Recycling

29 From maintaining stable supplies of materials and products to recycling 31 Expanding our recycling-oriented business model 33 Smelting and Cement Recycling System

Material Issues 2 Mitsubishi Materials Long-Term Management Policy: Vision Environmental Preservation and Technology 35 Environmental Management We will become the world’s leading business group committed to 37 Overall Environmental Impact supporting recycling-oriented society through materials innovation, 39 Preventing Global Warming with use of our unique and distinctive technologies. 43 Preventing Environmental Pollution 45 Preserving the Natural Environment 47 Developing Environmental Technologies and Products Corporate Philosophy Material Issues 3 Training and Harnessing a Diverse Range of What we are trying to achieve Human Resources For People, Society and the Earth 49 Developing Human Resources and Promoting Diversity

well as the provision of systems, engineering services and resource recycling. 57 Responsible Procurement of Raw Materials To respond to the various needs of society, we are constantly tackling research and 59 Product Quality and Safety development on our unique technologies and products, and endeavor to provide ever more superior products, systems and services to the world. Material Issues 6 Stakeholder Communication We will continue to address the requirements of the world in this new era, such as technical innovation, development of information technology, globalization and a 61 Interaction with Stakeholders heightened awareness of environmental protection, through our fair business activi- 63 Dialogue with Shareholders and Investors ties, and to create new materials* on the Earth with an aspiration to contribute to the 64 Dialogue with Customers sustainable development of society. 65 Getting Involved in Society and the Community At the same time, we will carefully and efﬁciently use natural resources and raw materials, which are gifts of the Earth, and will aim to be the leading corporate group Material Issues 7 Governance that contributes to society based upon resource recycling. 67 Corporate Governance and CSR Promotion Framework It is thus our principles to serve people, society and the Earth through our varied 69 Compliance business activities. 71 Risk Management *Materials include all kinds of value that the Mitsubishi Materials Group is capable of offering, such as raw materials, products, services, solutions and human resources. 73 Application level with the GRI Sustainability Reporting 74 Third-Party Assessment of the Mitsubishi Materials CSR

1 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 2 Contents

3 Editorial Policy 4 The Process of Compiling this Report For People, Society and 5 Top interview Our Focus

9 1 For the recycling and reuse of metal resources the Earth Making even more effective use of urban mines 13 2 Our Sixth Stakeholders’ Meeting Recycling from global urban mines

Material Issues 1 Resources and Recycling

29 From maintaining stable supplies of materials and products to recycling 31 Expanding our recycling-oriented business model 33 Smelting and Cement Recycling System

Material Issues 4 As a diversified materials company, Mitsubishi Materials has contributed to the creation Occupational Health and Safety of an affluent society through the supply of basic materials indispensable to the world. 53 Creating Safe, Pleasant Working Environments Today, our activities cover a wide range, from the manufacture of resources and basic materials to fabricated products and new materials with high-performance features, as Material Issues 5 Responsibility throughout the value chain well as the provision of systems, engineering services and resource recycling. 57 Responsible Procurement of Raw Materials To respond to the various needs of society, we are constantly tackling research and 59 Product Quality and Safety development on our unique technologies and products, and endeavor to provide ever more superior products, systems and services to the world. Material Issues 6 Stakeholder Communication We will continue to address the requirements of the world in this new era, such as technical innovation, development of information technology, globalization and a 61 Interaction with Stakeholders heightened awareness of environmental protection, through our fair business activi- 63 Dialogue with Shareholders and Investors ties, and to create new materials* on the Earth with an aspiration to contribute to the 64 Dialogue with Customers sustainable development of society. 65 Getting Involved in Society and the Community At the same time, we will carefully and efficiently use natural resources and raw materials, which are gifts of the Earth, and will aim to be the leading corporate group Material Issues 7 Governance that contributes to society based upon resource recycling. 67 Corporate Governance and CSR Promotion Framework It is thus our principles to serve people, society and the Earth through our varied 69 Compliance business activities. 71 Risk Management *Materials include all kinds of value that the Mitsubishi Materials Group is capable of offering, such as raw materials, products, services, solutions and human resources. 73 Application level with the GRI Sustainability Reporting 74 Third-Party Assessment of the Mitsubishi Materials CSR

1 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 2 Editorial Policy The Process of Compiling this Report

This report is designed to inform our stakeholders – all those with  Period We place great importance on the process of compiling our CSR The Process of Compiling this CSR Report a vested interest in Mitsubishi Materials and the Mitsubishi Materi- Fiscal 2015 (April 1, 2014 – March 31, 2015) Reports. The process is designed with the aim of improving als Group – about the corporate social responsibility (CSR) *It also includes selected information relating to activities before and after. transparency and reliability as a company, in the interests of Information from the external environment/ activities undertaken by the Mitsubishi Materials Group in an  Boundary accountability, and of tying in with CSR activities carried out by Gathering and summarizing feedback easy-to-understand format. As a communication tool, it is also group companies. Quantitative data: • Financial data and employee numbers by October 2014 onwards intended to elicit opinions and to help us advance our activities. region refer to consolidated figures.  Improving Transparency and Reliability in the  Outline of CSR Reporting Tools • Greenhouse gas emissions include major Interests of Accountability • Collecting responses from surveys (SRI, etc.) We make every effort to systematically disclose CSR-related consolidated subsidiaries (99 companies). Having examined and identified seven “material issues” (see P.25 ) • Bringing together responses from reader information on behalf of the Mitsubishi Materials Group using the Other environmental data is for major from the perspectives of our stakeholders and management, they questionnaires, etc. following tools. consolidated subsidiaries with manufactur- provide the basic framework for both our CSR activities and CSR ing facilities (63 companies) reports. As the environment is constantly changing around us, not • CSR training data refers to the main compa- least in terms of stakeholder trends, we review our material issues Confirmation of editorial policy, etc. nies subject to CSR activities (85 companies). on a regular basis. We also keep a close eye on matters of interest January 2015 onwards • Safety data refers to major consolidated CSR Report 2015 (printed version, PDF) to our stakeholders, their expectations and business conditions, so subsidiaries (23 companies) that we can check and adjust the contents of our reports in precise • Confirming basic philosophy This is an annual report on material As a rule, all other data refers to Mitsubishi detail. • Selecting priority topics issues, focusing primarily on Mitsubishi Materials on a non-consolidated basis. Materials but also featuring initiatives To keep track of matters of interest to our stakeholders, their carried out by group companies. Qualitative data: Mitsubishi Materials and Group companies expectations and other related trends, we gather information  Key Changes to Organizations Subject to Reporting from individual departments, based on sources such as question- Stakeholder Meeting April 2014 We merged with and integrated Mitsubishi Materials naires from SRI agencies, responses to reader questionnaires, Tools Co., Ltd. into Mitsubishi Materials. and intensive internal interviews prior to the compilation of the February 2015 July 2014 We sold off a portion of our shares in MMC Superalloy current report. • Exchanging opinions regarding the Group’s role Metals Company Supplementary Corporation (now Hitachi Metals MMC Superalloy Ltd.). We hold Stakeholder Meetings to discuss topics of particular in recycling resources from global urban mines Data Book (PDF) • As part of our disclosure activities as a member of the ICMM, importance. Meetings also help to establish a clear understand- we publish the Metals Company Supplementary Data Book, a ing of social issues, from various different angles, and to We publish a supplementary data book containing detailed information on detailed online report outlining activities carried out by our examine details of group initiatives. activities carried out by our Metals Metals Company, as well as activities undertaken by our four We also obtain an “independent assurance,” to assist in com- Internal interviews Company and smelting-related Group smelting-related Group companies Hosokura Metal Mining prehensively evaluating the contents of our report against companies not included in this report. May 2015 Co., Ltd., Onahama Smelting & Refining Co., Ltd., Materials international requirements, and a “third-party assessment” of our initiatives from an expert standpoint, in an effort to improve Eco-Refining Co., Ltd. and PT. Smelting (Indonesia). • Obtaining details of initiatives and issues in each * For the purposes of this report, the terms “Mitsubishi Materials” and “the transparency and reliability. department, stakeholder trends, etc. company” refer to Mitsubishi Materials on a nonconsolidated basis. CSR Section of our Website  Establishing a Shared Understanding of Changes in the  Date of publication Our website features content External Environment and Improving CSR Activities that we were unable to fit in this January 2016 (previous report published in January 2015; next We make the most of communication activities, as part of the Compilation report, including detailed perfor- report scheduled for January 2017) process of compiling this report, to improve our CSR activities, by mance data, a GRI Content  June-August 2015 Index, fact sheets, data from Referenced guidelines establishing a shared understanding and raising awareness of previous reports and information Global Reporting Initiative (GRI) Sustainability Reporting Guide- changes in the external environment for example. • Asking individual departments to write articles on our latest activities. lines (version 3.0) The CSR Department, Environment & CSR Department, which • Conducting interviews http://www.mmc.co.jp/corporate/en/csr/csr.html *A full GRI Content Index is available via the CSR section of our website. oversees our CSR activities, conducts internal interviews with • Editing report * In the event that any mistakes or misprints are discovered after publication of our  Caution Regarding Forecasts and Forward-Looking managers and members of staff from each department over the Corporate Social Responsibility Report, corrections are posted on the CSR section of our website. Statements course of five days, with the aim of efficiently verifying the con- The final decision, including any investment decisions, rests with tents of the current report. It is also an ideal opportunity to Independent assurance individuals. The Company assumes no responsibility or liability actively exchange opinions and share information, on subjects August 2015 whatsoever for any losses or damages resulting from investments such as matters of interest or concern to stakeholders, issues for or other actions based on information in this report. the future, and the direction of our activities. • Independent assurance Inclusion in Socially Responsible Investment (SRI) Indices Asking individual departments to produce articles for this report • Third-party assessment Symbols Used in This Report based on the results of internal interviews, and then exchanging opinions regarding the draft report once it has been compiled, WEBEB Related information featured in the CSR section of our website enables departments to review their CSR activities from an external perspective and helps to develop a shared understanding of their Mitsubishi Materials has been selected for inclusion in the Morning- P.00 Related information featured on the relevant page star Socially Responsible Investment Index (MS-SRI), Japan’s first strategic significance. Publication socially responsible share index, consisting of the top 150 listed Data Book P.00 Related information featured in the The policy for the current CSR report, its contents and other rel- domestic companies in terms of the social credentials, as chosen by Metals Company Supplementary Data Book evant details are discussed and approved by management during September 2015＊ Morningstar. Figures subject to external independent assurance CSR Committee meetings. We also express our commitment to ＊English version published in January 2016 CSR activities through activities such as Stakeholder Meetings and interviews, which once again involve management staff.

3 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 4 Editorial Policy The Process of Compiling this Report

3 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 4 TOP INTERVIE W

Continually striving to create a sustainable society, in an effort to become “the world’s leading business group

committed to supporting recycling-oriented society” Contributing to a recycling-oriented society We have set out the following three groupwide growth in line with our long-term management strategies under our medium-term management plan, policy “Materials Premium 2016”. The first of these is “fortifying the foundations for Recycling and reusing resources has become a top priority growth.” To achieve this, we intend to strategically invest in recent years in the interests of sustainable development ¥100 billion over three years in production increase across throughout the international community. As a diversified all lines of businesses and also in M&A, where we are materials manufacturer, Mitsubishi Materials Group has proactively seeking good opportunities. For M&A, we always been committed to tackling this issue through the strengthened the foundations of our cemented carbide provision of products and services to our customers. products business by acquiring of Hitachi Tool Engineering, One of our key characteristics as a group is that we have Ltd. as a subsidiary in April 2015. We are also working to both technologies capable of recycling valuable metal improve our financial position, through initiatives such as resources contained in waste and scrap that is difficult “business selection and concentration” and improving to treat via the copper smelting process, and technology profitability. As a result, we achieved the target of net D/E capable of detoxifying waste in the cement manufacturing ratio set out in our medium-term management plan by the process at high temperatures, and using it as an alternative end of fiscal 2015, a full two years ahead of schedule. source of raw materials or thermal energy. I think we’re Our second strategy is “strengthening global competitive- probably the only group in the world that has both ness.” To achieve this, we are strategically expanding new technologies, enabling us to adequately treat millions of production and sales locations, especially in emerging coun- tons of waste and scrap every year. tries and regions. From 119 locations in 27 countries at the These two technologies can be used in combination by beginning of fiscal 2015, we are planning to increase that each utilizing the byproducts and waste generated by the total to 141 locations in 31 countries by the end of fiscal other. We call it “Smelting and Cement Recycling System” 2017. Further, in an effort to strengthen capabilities to super- and it’s one of the unique aspects of our “Materials vise and assist all Group companies in Southeast Asia, which Premium” (distinctive synergy across multiple businesses). is growing at a remarkable rate even compared to other In addition, for example, our Group companies are engaged emerging regions, in February 2014 we have incorporated in recycling of home appliances and vehicles that are no longer our office in Thailand and made it a regional management needed by their household or corporate users, and recovering company. It is tasked with intensive management of Group and recycling of cemented carbide products and aluminum companies. beverage cans sold by the Group. As you may see from these, Our third strategy is “pursuing a recycling-oriented busi- our Group provides infrastructure in various fields of business ness model.” In the Metals business, that means making that are essential for a recycling-oriented society. effective use of “urban mines”, or advancing the process- The vision behind our long-term management policy illus- ing of E-scrap (scrap containing gold and silver,) that is trates our commitment to creating a sustainable society, as developing rapidly. In addition to our unique “Mitsubishi we continue to promote initiatives such as these throughout Process”* which is also suitable for processing large quan- the Mitsubishi Materials Group. tities of E-scrap, we are working to strengthen technologies to quickly and accurately analyze amounts of gold, silver We will become the world’s leading business group and other valuable metals contained in scrap, and facilities committed to supporting recycling-oriented society to increase the volume of scrap that we can process. Once through materials innovation, with use of our unique we have completed this work, we expect to become one and distinctive technologies”. of the leading companies in this business across the world market. We are also expanding our global business coverage, through activities such as establishing a framework for Effectively implementing our medium-term collecting E-scrap in the US. Akira Takeuchi management plan for the sustainable *For more details, please see P.33 President development of the Group Mitsubishi Materials Corporation

5 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 6 TOP INTERVIE W

Continually striving to create a sustainable society, in an effort to become “the world’s leading business group committed to supporting recycling-oriented society” Contributing to a recycling-oriented society We have set out the following three groupwide growth in line with our long-term management strategies under our medium-term management plan, policy “Materials Premium 2016”. The first of these is “fortifying the foundations for Recycling and reusing resources has become a top priority growth.” To achieve this, we intend to strategically invest in recent years in the interests of sustainable development ¥100 billion over three years in production increase across throughout the international community. As a diversified all lines of businesses and also in M&A, where we are materials manufacturer, Mitsubishi Materials Group has proactively seeking good opportunities. For M&A, we always been committed to tackling this issue through the strengthened the foundations of our cemented carbide provision of products and services to our customers. products business by acquiring of Hitachi Tool Engineering, One of our key characteristics as a group is that we have Ltd. as a subsidiary in April 2015. We are also working to both technologies capable of recycling valuable metal improve our financial position, through initiatives such as resources contained in waste and scrap that is difficult “business selection and concentration” and improving to treat via the copper smelting process, and technology profitability. As a result, we achieved the target of net D/E capable of detoxifying waste in the cement manufacturing ratio set out in our medium-term management plan by the process at high temperatures, and using it as an alternative end of fiscal 2015, a full two years ahead of schedule. source of raw materials or thermal energy. I think we’re Our second strategy is “strengthening global competitive- probably the only group in the world that has both ness.” To achieve this, we are strategically expanding new technologies, enabling us to adequately treat millions of production and sales locations, especially in emerging coun- tons of waste and scrap every year. tries and regions. From 119 locations in 27 countries at the These two technologies can be used in combination by beginning of fiscal 2015, we are planning to increase that each utilizing the byproducts and waste generated by the total to 141 locations in 31 countries by the end of fiscal other. We call it “Smelting and Cement Recycling System” 2017. Further, in an effort to strengthen capabilities to super- and it’s one of the unique aspects of our “Materials vise and assist all Group companies in Southeast Asia, which Premium” (distinctive synergy across multiple businesses). is growing at a remarkable rate even compared to other In addition, for example, our Group companies are engaged emerging regions, in February 2014 we have incorporated in recycling of home appliances and vehicles that are no longer our office in Thailand and made it a regional management needed by their household or corporate users, and recovering company. It is tasked with intensive management of Group and recycling of cemented carbide products and aluminum companies. beverage cans sold by the Group. As you may see from these, Our third strategy is “pursuing a recycling-oriented busi- our Group provides infrastructure in various fields of business ness model.” In the Metals business, that means making that are essential for a recycling-oriented society. effective use of “urban mines”, or advancing the process- The vision behind our long-term management policy illus- ing of E-scrap (scrap containing gold and silver,) that is trates our commitment to creating a sustainable society, as developing rapidly. In addition to our unique “Mitsubishi we continue to promote initiatives such as these throughout Process”* which is also suitable for processing large quan- the Mitsubishi Materials Group. tities of E-scrap, we are working to strengthen technologies to quickly and accurately analyze amounts of gold, silver We will become the world’s leading business group and other valuable metals contained in scrap, and facilities committed to supporting recycling-oriented society to increase the volume of scrap that we can process. Once through materials innovation, with use of our unique we have completed this work, we expect to become one and distinctive technologies”. of the leading companies in this business across the world market. We are also expanding our global business coverage, through activities such as establishing a framework for Effectively implementing our medium-term collecting E-scrap in the US. Akira Takeuchi management plan for the sustainable *For more details, please see P.33 President development of the Group Mitsubishi Materials Corporation

5 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 6 TOP INTERVIE W

Prioritizing efforts to prevent global Instilling and constantly reinforcing our warming and to tackle environmental and belief in “putting safety and health ﬁrst in human rights issues in the supply chain. everything we do”

Global warming is a pressing issue on a worldwide scale, Our policy of “putting safety and health first in everything we and one of our top priorities as well. In particular, the fact do,” is a faith that we have succeeded from our predecessors that we use limestone as the main raw material of cement and firmly maintained to date. Without the safety and health means that we inevitably emit large volumes of CO2 from of each and every employee, we will never be able to grow the calcination process. As a result, our Cement business and develop as a company. accounts for around 80% of the Group’s total emissions of In spite of this policy, a serious explosion and fire occurred greenhouse gases. at our Yokkaichi Plant in January 2014. That is most regret- We are constantly working to save energy and reduce CO2 table and I take it very seriously. emissions across the Group, in line with government policy After the accident, we received recommendations from on preventing global warming. We set targets and implement the Accident Investigation Committee, consisting mainly of effective policies taking into consideration the specific nature academic experts and other outside specialists, which covered of each of our businesses. our facilities, operating process, organizational structures and to play greater roles. although our business shifted over time, we continued to We are also committed to creating and increasing geother- safety culture. We will continue to implement each and every Currently, around 15% of our recruitment for graduates evolve and became a diversified material manufacturer. The mal, hydroelectric, solar and other forms of renewable energy, measure in accordance with the recommendations and put all entering career positions are female. We are aiming to increase fact that we have kept going for 145 years since the foundation and to the sustainable management and use of the extensive our effort into preventing a recurrence of the accident. that to 25% by fiscal 2021. In February 2015. we established is thanks to the wisdom and efforts of our predecessors, who forests owned by the Group. We have also carried out a complete review of safety a Diversity Development Group within the Human Resources continued to make people happy and contribute to social devel- When procuring minerals from overseas mines, which are measures on a groupwide basis, to ensure that nothing like Department and had it address issues to be resolved. They opment by always remaining one step ahead of changes over at the upstream end of the supply chain, it is essential to con- this can happen again. Specifically, immediately after the spent six months doing so, with measures including conducting time and providing society with essential products and services. sider social and environment issues including human rights, as accident, we reviewed procedures for high risk operations a questionnaire, and holding “town meetings” at domestic I am telling our employees that, I want each and every Group the development and operation of mines could have a serious (approximately 15,000 procedures) at all Group locations, facilities aimed at promoting greater roles for women. We will employee to fully understand our corporate philosophy – For impact on local communities and natural environment. There- and launched a new Companywide Zero Accident Project, in roll out specific measures based on the results of our discus- People, Society and the Earth – and engage in their work with a fore, the Metals business has established its own unique CSR order to restructure our safety, health and accident prevention sions. clear awareness of the roles and responsibilities they undertake. Investment Standards and CSR Procurement Standard and frameworks. In March 2014, we established a Safety & Health With respect to the elderly, many employees who retired at I also believe that the ultimate aim of a company is to con- applies them to evaluate respective investment in and procure- Department responsible for integrated management of safety the age limit are applying for fixed term reemployment and tinually grow in partnership with society. It is important to be ment from mine. These standards also require us to collect and health throughout the Group and strengthened such working to pass on the skills and knowledge they have acquired a company that continuously adapts to changes in society, information from and work with overseas mines to ensure that governance. Further, we are implementing other measures, over their careers to younger employees. grow and develop, so that our employees can live happy lives they are being operated appropriately. With regard to the issue including making improvements based on findings suggested We also have a proven track record in recruiting foreign and we can contribute to our stakeholders. That is another of conflict minerals, we have obtained third-party conflict-free by outside consultants. citizens and are also working to create workplaces taking into reason why we need to ascertain the achievement of targets certification for gold, tin and tungsten, all of which we use as I feel a sense of reassurance as originality and ingenuity in consideration the capability of individual disabled people. set out in our medium-term management plan. part of our smelting operations within the Group. all of our workplaces continue to advance, we are nonetheless These are all part of our ongoing commitment to becoming In April 2015 we set up the Task Force for Organizational determined to constantly reinforce safety in the future so that an organization in which a diverse range of human resources Cultural Reform, which aims to pursue innovation that is we can achieve a Zero Accident Record. can harness their individual capabilities. indispensible for our future growth. Based on the results of internal consciousness surveys carried out in 2014 and the aforementioned discussions within the Diversity Development Promoting the creation of organizations and Instilling pride, self-awareness and Group, we are determined to achieve this aim. workplaces where a diverse range of human innovation, as a company that continues to Having been implementing full-scale CSR activities for ten resources including women can be active. grow in partnership with society years now, I am intending to conduct an objective assessment on CSR, similar to safety, so that we can determine if there are Human resources are definitely becoming scarce as a result Our Group originated from the domestic coal and copper any areas that we need to improve. of Japan’s declining birth rate and aging society. With that in mining , which are among the oldest businesses of the Mitsubi- I hope you can appreciate what we are trying to achieve, mind, we are increasing efforts to create more opportunities shi Group. We have supported the modernization of Japan and that we can continue to rely on your honest feedback for women, the elderly, foreign citizens and disabled people ever since the foundation of our Company in 1871. Since then, and support in the future.

7 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 8 TOP INTERVIE W

Global warming is a pressing issue on a worldwide scale, Our policy of “putting safety and health first in everything we and one of our top priorities as well. In particular, the fact do,” is a faith that we have succeeded from our predecessors that we use limestone as the main raw material of cement and firmly maintained to date. Without the safety and health means that we inevitably emit large volumes of CO2 from of each and every employee, we will never be able to grow the calcination process. As a result, our Cement business and develop as a company. accounts for around 80% of the Group’s total emissions of In spite of this policy, a serious explosion and fire occurred greenhouse gases. at our Yokkaichi Plant in January 2014. That is most regret- We are constantly working to save energy and reduce CO2 table and I take it very seriously. emissions across the Group, in line with government policy After the accident, we received recommendations from on preventing global warming. We set targets and implement the Accident Investigation Committee, consisting mainly of effective policies taking into consideration the specific nature academic experts and other outside specialists, which covered of each of our businesses. our facilities, operating process, organizational structures and to play greater roles. although our business shifted over time, we continued to We are also committed to creating and increasing geother- safety culture. We will continue to implement each and every Currently, around 15% of our recruitment for graduates evolve and became a diversified material manufacturer. The mal, hydroelectric, solar and other forms of renewable energy, measure in accordance with the recommendations and put all entering career positions are female. We are aiming to increase fact that we have kept going for 145 years since the foundation and to the sustainable management and use of the extensive our effort into preventing a recurrence of the accident. that to 25% by fiscal 2021. In February 2015. we established is thanks to the wisdom and efforts of our predecessors, who forests owned by the Group. We have also carried out a complete review of safety mea- a Diversity Development Group within the Human Resources continued to make people happy and contribute to social devel- When procuring minerals from overseas mines, which are sures on a groupwide basis, to ensure that nothing like this can Department and had it address issues to be resolved. They opment by always remaining one step ahead of changes over at the upstream end of the supply chain, it is essential to con- happen again. Specifically, immediately after the accident, we spent six months doing so, with measures including conducting time and providing society with essential products and services. sider social and environment issues including human rights, as reviewed procedures for high risk operations (approximately a questionnaire, and holding “town meetings” at domestic I am telling our employees that, I want each and every Group the development and operation of mines could have a serious 15,000 procedures) at all Group locations, and in April 2014, facilities aimed at promoting greater roles for women. We will employee to fully understand our corporate philosophy – For impact on local communities and natural environment. There- launched a new Companywide Zero Accident Project, in order roll out specific measures based on the results of our discus- People, Society and the Earth – and engage in their work with a fore, the Metals business has established its own unique CSR to restructure our safety, health and accident prevention sions. clear awareness of the roles and responsibilities they undertake. Investment Standards and CSR Procurement Standard and frameworks. In April 2015, we established a Safety & Health With respect to the elderly, many employees who retired at I also believe that the ultimate aim of a company is to con- applies them to evaluate respective investment in and procure- Department responsible for integrated management of safety the age limit are applying for fixed term reemployment and tinually grow in partnership with society. It is important to be ment from mine. These standards also require us to collect and health throughout the Group and strengthened such working to pass on the skills and knowledge they have acquired a company that continuously adapts to changes in society, information from and work with overseas mines to ensure that governance. Further, we are implementing other measures, over their careers to younger employees. grow and develop, so that our employees can live happy lives they are being operated appropriately. With regard to the issue including making improvements based on findings suggested We also have a proven track record in recruiting foreign and we can contribute to our stakeholders. That is another of conflict minerals, we have obtained third-party conflict-free by outside consultants. citizens and are also working to create workplaces taking into reason why we need to ascertain the achievement of targets certification for gold, tin and tungsten, all of which we use as I feel a sense of reassurance as originality and ingenuity in consideration the capability of individual disabled people. set out in our medium-term management plan. part of our smelting operations within the Group. all of our workplaces continue to advance, we are nonetheless These are all part of our ongoing commitment to becoming In April 2015 we set up the Task Force for Organizational determined to constantly reinforce safety in the future so that an organization in which a diverse range of human resources Cultural Reform, which aims to pursue innovation that is we can achieve a Zero Accident Record. can harness their individual capabilities. indispensible for our future growth. Based on the results of internal consciousness surveys carried out in 2014 and the aforementioned discussions within the Diversity Development Promoting the creation of organizations and Instilling pride, self-awareness and Group, we are determined to achieve this aim. workplaces where a diverse range of human innovation, as a company that continues to Having been implementing full-scale CSR activities for ten resources including women can be active. grow in partnership with society years now, I am intending to conduct an objective assessment on CSR, similar to safety, so that we can determine if there are Human resources are definitely becoming scarce as a result Our Group originated from the domestic coal and copper any areas that we need to improve. of Japan’s declining birth rate and aging society. With that in mining , which are among the oldest businesses of the Mitsubi- I hope you can appreciate what we are trying to achieve, mind, we are increasing efforts to create more opportunities shi Group. We have supported the modernization of Japan and that we can continue to rely on your honest feedback for women, the elderly, foreign citizens and disabled people ever since the foundation of our Company in 1871. Since then, and support in the future.

7 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 8 For the recycling and reuse of metal resources

Key features of our E-scrap recycling operations

❶ Outstanding processes ❷ Capacity to process a wide range of materials • Stable operations and processing based on the Mitsubishi Process • World-leading processing capacity, able to accept and recover precious Making even more effective use of urban mines • Unrivalled cost competitiveness compared to other companies metals from any type of E-scrap (pretreatment furnaces + ﬂash smelters) • Able to handle both pyro-metallurgy for items with low gold and silver • Industry-leading levels of low environmental impact contents, and hydro-metallurgy for high gold and silver contents (high mix, low volume)

 Procedure for accepting and processing E-scrap

If we want to establish a recy- Weighing Inspection Sampling Preparing samples Analysis cling oriented society, it is going to be essential to make effective use of the metal resources contained in various forms of waste, or to put it another way, “urban mines.” Complete recycling of resources Recovery of valuable metals We continue to expand our metal resource recycling operations from a global perspective throughout the Mitsubishi Materials Group, harnessing our outstanding copper smelting processes.

Mitsubishi Process

 Rolling out E-scrap recycling operations globally

Expanding recycling of E-scrap Japan North America Europe Growing momentum expected to increase Recycling E-scrap using the Mitsubishi Process Reinforcing recycling operations as priority

resource recycling worldwide growth strategy New collection One of our key strengths is the “Mitsubishi Process,” consisting facility Waste substrates from home appliances, computers, smart phones of unique copper smelting technologies that enable us to achieve To achieve our vision of becoming the “world’s leading business Securing a Asia leading global and other electronic devices (E-scrap) contain high concentrations of industry-leading reductions in environmental impact at our copper group committed to supporting recycling-oriented society,” as set share of valuable metals such as gold, silver, copper and palladium. As it is smelting plants. This in turn enables us to process E-scrap more out in the Mitsubishi Materials Group’s long-term management E-scrap processing possible to extract valuable metals more efficiently than from natural efficiently and at a significantly lower cost than other companies. policy, we have made it a priority growth strategy to reinforce recy- Scrap generated Scrap processed resources, E-scrap is attracting a great deal of attention as a form of We have also established an exceptionally low environmental cling operations in the metals sector. “urban mine”*1 that has no detrimental impact on the environment, impact system that prevents sulfurous gases from leaking out, Our long-term vision involves rolling out E-scrap recycling as people become more aware of the importance of recycling. something that has always been unavoidable with conventional operations globally and expanding our processing capacity, However, only a few of companies in the world have the neces- copper manufacturing processes. making the most of our Naoshima Smelter & Refinery, the Establishing a recycling-oriented sary smelting technology and facilities to recycle resources from Processing capacity for E-scrap depends heavily on technology Onahama Smelter & Refinery operated by Onahama Smelting business model through our E-scrap. At present, some countries are struggling to process the and facilities at the pre-treatment stages, from weighing through & Refining Co., Ltd. and overseas group company PT Smelting globally acclaimed recycling volumes of E-scrap they are producing. to analysis. In this respect too, we are able to accept and process (Indonesia). Our aim is to promote the effective use of metal operations With that in mind, we are actively accepting E-scrap from a wide range of E-scrap, regardless of type, thanks to our resources in order to help create a recycling-oriented society, Takao Kondo General Manager, Recycling Business Department, domestic and overseas sources throughout the Mitsubishi Mate- unique smelting system, along with the extensive smelting and whilst also increasing the profitability of our smelting business. Metals Company (currently General Manager, Vancouver rials Group. At our Naoshima Smelter & Refinery (Naoshima, recycling technologies we have built up over many years within On the collection side of things, we are currently focusing on Office, Mineral Resources & Recycling Business Unit) Kagawa prefecture) and the Onahama Smelter & Refinery oper- the Mitsubishi Materials Group. P.33 strengthening global procurement, acceptance and processing Recycling resources from E-scrap began in the 2000s, following the ated by Onahama Smelting & Refining Co., Ltd. (Iwaki, Fukushima capabilities under our medium-term management plan. In terms of introduction of the WEEE Directive and the Act on Recycling of Specified prefecture), we use E-scrap as a source of thermal energy, before global procurement, we are working to increase volumes collected Kinds of Home Appliances in Japan. Increasing volumes of E-scrap have recovering and recycling valuable metals. Achieving results through Group initiatives in Europe, North America and Asia, diversify material supply chan- been produced every year since then. As a result of the WEEE Directive*2 issued in 2002, used home nels and establish more distributed collection areas. In July 2014, Our E-scrap recycling business is one of the primary focuses of our appliances and waste electronic devices are being recovered at an The volume of E-scrap that we processed in fiscal 2015 came to we opened an E-scrap recycling facility at Mitsubishi Materials Metals Company. We are continuing to rapidly expand collections both at home and overseas, thanks to the overwhelming advantages afforded by increasing rate the world over, suggesting that volumes of E-scrap more than 80,000 tons, more or less double the total of around Corporation in the US. We intend to use this as a foothold in the the Mitsubishi Process, coupled with our advanced operational expertise. are likely to increase in the future. In an effort to make effective 40,000 tons we processed in fiscal 2012. The amount of gold promising North American market, in order to increase collection Our recycling process has been highly acclaimed by environmental use of urban mines, we are planning to increase the amount of recovered from E-scrap meanwhile came to approximately 4 volumes and speed up our services. authorities and recycling operators the world over, as a result of maximiz- E-scrap we accept from overseas sources even further. tons in fiscal 2015, equivalent to roughly 10% of the gold we In terms of reinforcing acceptance and processing capabilities, ing recovery of metal content and minimizing environmental impact. We *1: So-called “urban mines” consist of resources contained in existing electronic devices produced. we introduced a new online system to make appointments to are determined to establish a recycling-oriented business model that and other industrial products, the idea being that those resources can be extracted in makes effective use of resources, as we strive to become the world leader much the same way as an actual mine. bring in E-scrap in 2014, and have improved the efficiency of our in E-scrap recycling. *2: The Waste Electrical and Electronic Equipment (WEEE) Directive was set out by the EU acceptance procedures as a result. At our Naoshima Smelter & in order to promote recycling of waste from electronic devices and electrical products. Refinery meanwhile, we are working to upgrade acceptance and (Department and job titles correct at time of comments) processing facilities in order to process a world-leading total of 9 Mitsubishi Materials CSR Report 2015 approximately 110,000 tons of E-scrap every year. Mitsubishi Materials CSR Report 2015 10 For the recycling and reuse of metal resources

Key features of our E-scrap recycling operations

 Procedure for accepting and processing E-scrap

Mitsubishi Process

 Rolling out E-scrap recycling operations globally

Expanding recycling of E-scrap Japan North America Europe Growing momentum expected to increase Recycling E-scrap using the Mitsubishi Process Reinforcing recycling operations as priority resource recycling worldwide growth strategy New collection One of our key strengths is the “Mitsubishi Process,” consisting facility Waste substrates from home appliances, computers, smart phones of unique copper smelting technologies that enable us to achieve To achieve our vision of becoming the “world’s leading business Securing a Asia leading global and other electronic devices (E-scrap) contain high concentrations of industry-leading reductions in environmental impact at our copper group committed to supporting recycling-oriented society,” as set share of valuable metals such as gold, silver, copper and palladium. As it is smelting plants. This in turn enables us to process E-scrap more out in the Mitsubishi Materials Group’s long-term management E-scrap processing possible to extract valuable metals more efficiently than from natural efficiently and at a significantly lower cost than other companies. policy, we have made it a priority growth strategy to reinforce recy- Scrap generated Scrap processed resources, E-scrap is attracting a great deal of attention as a form of We have also established an exceptionally low environmental cling operations in the metals sector. “urban mine”*1 that has no detrimental impact on the environment, impact system that prevents sulfurous gases from leaking out, Our long-term vision involves rolling out E-scrap recycling as people become more aware of the importance of recycling. something that has always been unavoidable with conventional operations globally and expanding our processing capacity, However, only a few of companies in the world have the neces- copper manufacturing processes. making the most of our Naoshima Smelter & Refinery, the Establishing a recycling-oriented sary smelting technology and facilities to recycle resources from Processing capacity for E-scrap depends heavily on technology Onahama Smelter & Refinery operated by Onahama Smelting business model through our E-scrap. At present, some countries are struggling to process the and facilities at the pre-treatment stages, from weighing through & Refining Co., Ltd. and overseas group company PT Smelting globally acclaimed recycling volumes of E-scrap they are producing. to analysis. In this respect too, we are able to accept and process (Indonesia). Our aim is to promote the effective use of metal operations With that in mind, we are actively accepting E-scrap from a wide range of E-scrap, regardless of type, thanks to our resources in order to help create a recycling-oriented society, Takao Kondo General Manager, Recycling Business Department, domestic and overseas sources throughout the Mitsubishi Mate- unique smelting system, along with the extensive smelting and whilst also increasing the profitability of our smelting business. Metals Company (currently General Manager, Vancouver rials Group. At our Naoshima Smelter & Refinery (Naoshima, recycling technologies we have built up over many years within On the collection side of things, we are currently focusing on Office, Mineral Resources & Recycling Business Unit) Kagawa prefecture) and the Onahama Smelter & Refinery oper- the Mitsubishi Materials Group. P.33 strengthening global procurement, acceptance and processing Recycling resources from E-scrap began in the 2000s, following the ated by Onahama Smelting & Refining Co., Ltd. (Iwaki, Fukushima capabilities under our medium-term management plan. In terms of introduction of the WEEE Directive and the Act on Recycling of Specified prefecture), we use E-scrap as a source of thermal energy, before global procurement, we are working to increase volumes collected Kinds of Home Appliances in Japan. Increasing volumes of E-scrap have recovering and recycling valuable metals. Achieving results through Group initiatives in Europe, North America and Asia, diversify material supply chan- been produced every year since then. As a result of the WEEE Directive*2 issued in 2002, used home nels and establish more distributed collection areas. In July 2014, Our E-scrap recycling business is one of the primary focuses of our appliances and waste electronic devices are being recovered at an The volume of E-scrap that we processed in fiscal 2015 came to we opened an E-scrap recycling facility at Mitsubishi Materials Metals Company. We are continuing to rapidly expand collections both at home and overseas, thanks to the overwhelming advantages afforded by increasing rate the world over, suggesting that volumes of E-scrap more than 80,000 tons, more or less double the total of around Corporation in the US. We intend to use this as a foothold in the the Mitsubishi Process, coupled with our advanced operational expertise. are likely to increase in the future. In an effort to make effective 40,000 tons we processed in fiscal 2012. The amount of gold promising North American market, in order to increase collection Our recycling process has been highly acclaimed by environmental use of urban mines, we are planning to increase the amount of recovered from E-scrap meanwhile came to approximately 4 volumes and speed up our services. authorities and recycling operators the world over, as a result of maximiz- E-scrap we accept from overseas sources even further. tons in fiscal 2015, equivalent to roughly 10% of the gold we In terms of reinforcing acceptance and processing capabilities, ing recovery of metal content and minimizing environmental impact. We *1: So-called “urban mines” consist of resources contained in existing electronic devices produced. we introduced a new online system to make appointments to are determined to establish a recycling-oriented business model that and other industrial products, the idea being that those resources can be extracted in makes effective use of resources, as we strive to become the world leader much the same way as an actual mine. bring in E-scrap in 2014, and have improved the efficiency of our in E-scrap recycling. *2: The Waste Electrical and Electronic Equipment (WEEE) Directive was set out by the EU acceptance procedures as a result. At our Naoshima Smelter & in order to promote recycling of waste from electronic devices and electrical products. Refinery meanwhile, we are working to upgrade acceptance and (Department and job titles correct at time of comments) processing facilities in order to process a world-leading total of 9 Mitsubishi Materials CSR Report 2015 approximately 110,000 tons of E-scrap every year. Mitsubishi Materials CSR Report 2015 10 For the recycling and reuse of metal resources

Promoting home appliance recycling operations Expanding into vehicle recycling

Harnessing group strengths to help create a In fiscal 2015, we processed approximately 2.3 million As well as promoting home appliance recycling in Japan, Harnessing home appliance recycling recycling-oriented society home appliances for recycling at six plants operated by five we have also launched initiatives with an eye to rolling technology and expertise companies. That equates to roughly 20% of all home appli- out activities overseas. We are gathering information on As a diversified materials manufacturer, we have always ances disposed of in Japan. The main resources recovered demand, legislation and other factors relating to home Traditionally, vehicle recycling was driven by the scrap iron provided resources and materials that are essential to were scrap iron (48,600 tons), scrap copper (6,500 tons), appliance recycling in China, India and Southeast Asia, and distribution sector. In recent years however, more and more society. We also make the most of the technology and scrap aluminum (2,800 tons) and various plastics (31,600 are seriously considering developing that into a business. electrical components have been fitted to vehicles, as part expertise we have developed through our business as a tons). The reduction in environmental impact can be calcu- In November 2014, we gave a speech on our home appli- of the transition to hybrid, electric and other types of next group to engage in a wide range of recycling operations. lated as outlined in the table below, based on LCA*. ance recycling operations at an international conference in generation vehicles. As a result, vehicles have started to One of the main areas we focus on is recycling home * Life Cycle Assessment (LCA) is a method of analyzing and evaluating the impact that a Guangzhou (China), enabling us to outline our advanced use more nonferrous metals, such as copper and aluminum, product has on the environment throughout its life cycle, from obtaining the raw materials appliances, which we have been undertaking since before through to disposal. technologies to a Chinese market that is increasingly inter- rare earth metals such as neodymium, and precious metals. the enactment of the Act on Recycling of Specified Kinds of Carbon fiber bodies are also becoming a commercial reality Reduction in environmental impact due to ested in recycling home appliances. Home Appliances in 2001. We currently operate six plants recycling home appliances in an effort to develop more lightweight vehicles. via five companies nationwide, working in partnership with (LCA analysis for FY2015) Such sweeping structural changes in the auto industry appliance manufacturers. Our plants accept air conditioners, If recycling home appliances, so that resources are recovered New rare earth metals and solar cell initiatives are expected to have a dramatic effect on the composition refrigerators, televisions and washing machines, which are from used appliances and reused as new materials of the vehicle recycling business in the future. then sorted and crushed so that iron, nonferrous metals Compared to sending used appliances to landfill and We are also working on new recycling initiatives in areas With this trend in mind, we are harnessing the technology manufacturing new materials from natural resources such as copper and aluminum, plastics and other resources such as rare earth metals and solar cells, making the most and expertise we have built up through our home appliance can be extracted. Some of these materials are then recycled Effect Total of the technologies we have built up through our home recycling operations to expand into vehicle recycling too. at our nonferrous smelting and cement plants. We also use Reduction in CO2 emissions 118,000 tons appliance recycling operations. In an effort to recycle components and materials that have suitable methods to recover and recycle CFCs, lead and other Reduction in consumption of natural resources 120,000 tons Within the field of rare earth metals, we have been previously been unrecovered, in June 2014 we got involved substances that could be harmful to the environment. We Reduction in energy consumption 56,000 tons focusing on neodymium magnets used in compressors in the management of a vehicle recycling company. Since in high performance energy-saving air conditioners. We then make the most of our smelting and cement recycling Reduction in waste sent to landfill 104,000 tons then, we have been establishing facilities and developing a system, to eliminate the need for landfill and contribute to The above table does not take into account the impact of recovering CFCs*. Expressed have been working to develop recycling technologies for business based on recovering resources from the motors of in terms of CO2 emissions, recovering approximately 500 tons of CFCs would equate neodymium magnets, which contain rare earth metals the creation of a recycling-oriented society. to a reduction of approximately 1,300,000 tons. hybrid vehicles. * CFC refrigerants used in air conditionings, refrigerators and washing machines, and CFC such as neodymium and dysprosium, since 2009 and have We are also working to develop technologies aimed at insulation materials used in refrigerators devised a commercial process capable of efficiently recov- making effective use of cobalt and nickel contained in ering magnets. As neodymium magnets are also used in lithium ion batteries, as used in next generation vehicles  Location of recycling and Home appliance recycling the drive motors of hybrid vehicles, recovered volumes are Hokkaido Eco Recycle Systems Co., Ltd. Nonferrous smelting plant and household storage batteries, which are set to become related facilities expected to increase further in the future. (Items accepted) Cement plant increasingly popular in the future. Our aim is to establish an Four categories of used Vehicle recycling As solar panels continue to become more widespread, appliances and office integrated processing system from collection through to dis- equipment forecasts indicate that they will generate approximately Iwate Plant: Cement posal, taking into account safety in areas such as transport Chubu Eco Technology Co., Ltd. 20,000 tons of waste throughout Japan by the year 2020. and treatment. Yokoze Plant: Cement Aomori Plant: Cement Having started to develop recycling technologies in fiscal 2015, our aim is to establish technologies capable of effi- Harnessing internal synergy Hosokura Metal Plant I Plant II ciently recovering and recycling aluminum, copper, silver Mining Co., Ltd.: Lead with advanced technologies (Items accepted) Four categories of used appliances East Japan Recycling Systems Corporation and other metal resources from used products. to accelerate business

Naoshima Smelter & Reﬁnery: Ikuno Plant: Tin (Items accepted) expansion Copper, precious metals Four categories of used appliances and ofﬁce equipment Rare Metal Recycling Award for the Shogo Yamaguchi General Manager, Eco-Business Division development and demonstration Mineral Resources & Recycling Business Unit

Onahama Smelting & of neodymium magnet recycling Head Office Refining Co., Ltd.: Copper Panasonic Eco Technology Kanto Co., Ltd. technologies We have made steady progress with our home appliance recycling business Kurosaki Production Section: Cement since launching in 2001, and have secured a 20% share of the market by Panasonic Eco Technology Kanto Co., Ltd., a joint investment between working with appliance manufacturers at our six plants, operated by five ourselves and Panasonic Corporation, received a 2014 Rare Metal companies. We are now looking to apply the advanced technologies we

Resource Recycling Building Recycling Award from the Japan Environmental Management Associa- have acquired through this experience to vehicle recycling, in an effort to (Items accepted) Four categories of used appliances tion for Industry (JEMAI), in recognition of its efforts to develop and expand our environmental recycling operations even further. demonstrate technologies designed to recover neodymium magnets As well as stepping up cooperation with our Metals Company, we are Kyushu Plant: Cement Kansai Recycle Systems Co., Ltd. Kansai Recycle Systems Co., Ltd. Plant II Marc Corporation from used air conditioners. Having been working to develop and dem- actively focusing on technical development in areas such as recovering onstrate recycling technologies for the recovery of neodymium mag- (Items accepted) (Items accepted) (Items accepted) scarce resources and adequately processing difﬁcult-to-treat materials. We Three categories of Used televisions Used vehicles nets from air conditioner compressors, with support from the Ministry are aiming to create a business model that makes the most of our key used appliances of Economy, Trade and Industry and the New Energy and Industrial (refrigerators, washing features as a material manufacturer, so that we can help to create a machines and air Technology Development Organization (NEDO), Panasonic Eco Tech- recycling-oriented society that looks after, recycles and reuses the earth’s Head Ofﬁce Plant Plant II conditioners) nology Kanto was highly acclaimed for the results it has achieved. precious natural resources.

11 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 12 For the recycling and reuse of metal resources

Promoting home appliance recycling operations Expanding into vehicle recycling

11 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 12 Our Sixth Stakeholders’ Meeting

Recycling from global urban mines High hopes for collaboration with governments and researchers, in a hugely important business with tangible potential for overseas expansion The roles and responsibilities of the Mitsubishi Materials Group as we enter a Atsushi Terazono Deputy Director, Center for Material Cycles and Waste Management new stage in resource recycling Research, National Institute for Environmental Studies As a company that is committed to resource recycling, making the most of your wide-ranging business infrastructure from nonferrous smelting to cement, Mitsubishi Materials is a hugely reassuring presence within the so-called “venous” industry. This is a field in which you can make a real difference to tackling social issues above and beyond mere recycling activities, by assisting with the adequate disposal of illegally dumped industrial waste in Teshima (Kagawa prefecture) for instance (Naoshima Smelter & Refinery) or taking in waste left over from the Great East Japan Earthquake as part of your cement operations. I’d like to see you stepping up initiatives like that even further. Last year, the Ministry of the Environment held a meeting for officials involved in the Basel Convention from countries throughout Asia. After the meeting, officials went on a tour of your Naoshima Smelter & Refinery, and were able to see facilities where E-scrap imported from Asian countries is processed. This was a crucial opportunity in terms of showcasing Japanese initiatives. As it stands, there are large volumes of waste home appliances and printed circuit boards being left unprocessed in countries across Asia. CFCs, which are used as a coolant, are one of the causes of damage to the ozone layer and global warming, but they are still not being adequately processed in some parts of Asia. If you make the most of your existing technologies and processes, I feel that there is real potential for you to expand your operations overseas. While it is impressive that you are aiming to secure a leading share of the world market for processing E-scrap, looking further into the future, it will also be essential to support national governments and gain public understanding. As part of that process, it will be important to go about your business activities in an open manner, by providing information on negative aspects of your operations and risks, rather than focusing solely on the positive. As well as sharing your initiatives and vision with a broad section of the public and lobbying the industry as a whole, I hope that you will also do things like create opportunities to discuss current issues and strengthen collaboration with governments and researchers.

Viewing recycling operations from a global perspective and strengthening public information capabilities

Takashi Nakamura Professor, Research Center for Sustainable Science & Engineering, Institute of Multidisciplinary Research for Advanced Materials, Tohoku University We hold stakeholders’ meetings in order to incorporate feedback from outside experts into our CSR activities from a long-term perspective. Existing methods of waste disposal have certain limitations when it comes to tackling concerns regarding E-scrap being taken out of the country by inappropriate means. Nonetheless, we are starting to see governments discussing compliance with the This year we held our sixth stakeholders’ meeting. The meeting focused on “recycling from urban mines” as a key component in Basel Convention in relation to items such as waste electronic printed circuit boards. resource sustainability and reducing environmental impact. This is one of our top priorities in terms of “supporting recycling-oriented Even from an expert standpoint, your E-scrap initiatives are fascinating and are having a real impact. That’s why it is impor- society,” as outlined in the vision behind our long-term management policy. Having invited experts with specialist knowledge in this tant to provide information on the role that your operations play within society as a whole in a manner that is easier for general field to attend, the meeting started with a presentation on our home appliance and vehicle recycling operations, focusing particularly consumers to understand. Maybe you could make a broader contribution to society by visiting schools or producing teaching on our core E-scrap* recycling business. We then received invaluable feedback and recommendations on subjects such as the role materials, for example, or you could look into different forms of disclosure and step up publicity activities, by showcasing the that we need to play and issues for the future. recycling process at your Naoshima Smelter & Refinery on TV. When we think about Japanese society for the future, I think it’s absolutely crucial that we reassess recycling from a global perspective, taking into account *Scrap containing gold and silver, consisting of crushed printed circuit boards from waste home appliances and electronic devices factors such as resource protection and non-proliferation. Given the significant differences between Japan and the international community in terms of legislation, social systems and business practices, not least in the EU, it is important to keep a close eye on global trends at all times, and to continue building Points identified as important comments knowledge and expertise so that it can be fed back into your business strategy. There is much discussion in the EU regarding benchmarks based on “resource efficiency” (RE), from the standpoint of sustainability and growth strategies. If you want to promote your vision globally, it would be beneficial to take factors  In terms of expanding recycling businesses, it is important to provide national gov- like that on board, and explore possibilities for collaboration with manufacturers of end products. ernments and official bodies with support to develop systems that will enable the effective use of urban mines, by providing information and policy recommendations for instance. It is also important to widely publicize the social value that such opera- It is crucial to set out an ideal vision for the future, and to showcase your strengths and strategies tions provide, using terms that are easy for consumers and members of the public to understand. Mariko Kawaguchi  An effective way to showcase the social and environmental value of recycling busi-  Date Thursday, February 26, 2015, 11:30-14:30 Chief Researcher, Research Division nesses would be to formulate a clear vision for the future, through “backcasting,”  Venue Conference Room at MMC Headquarters (Chiyoda-ku, Tokyo) Daiwa Institute of Research Ltd. and map out a strategy to achieve that vision.  Participants from the Mitsubishi Materials Group  I would recommend strategically providing investors with information on the I wonder whether many people actually know about the significant environmental effects of your recycling businesses and Akira Takeuchi Vice President (in charge of CSR) “unseen asset value” of outstanding technologies and processes as part of the processes, not least in terms of reducing CO2 emissions. It seems a shame not to tell as many consumers as possible about the Osamu Iida Managing Director; President, Metals Company Group’s unique E-scrap recycling business. value you offer, from quantitative values such as processing volumes to qualitative values such as the efficiency and superior Hiroshi Kondo Senior Executive Officer, General Manager of Mineral Resources &  Advanced initiatives relating to recycling rare earth metals, solar panels and lithium Recycling Business Unit environmental credentials of the Mitsubishi Process. ion batteries need to take into account economic viability, safety and the business Takao Kondo General Manager, Recycling Business Department, Metals Company I think you should also be engaging in more strategic communication activities with investors, who are starting to take a environment, from a medium- to long-term perspective. Shogo Yamaguchi General Manager, Eco-Business Division, Mineral Resources & real interest in ESG (environmental, social and governance) investment. As well as your long-term vision, you should be telling Recycling Business Unit investors about unseen value and assets not included on your balance sheet, such as your world-leading commitment to “urban Tetsuro Sakai General Manager, Metallurgy Department, Metals Company mines.” Tadakazu Kagami General Manager, Occupational Safety & CSR Department, Metals Company The need for a recycling-oriented society is going to keep on increasing in the future, on a global scale. The technique of “backcasting” has become common- Shigehiko Iwahori Deputy General Manager, Recycling Business Department, Metals Company place in the world of CSR, based on envisioning an ideal future and working back. If you could set out a vision for your recycling businesses – such as “we will Yoshiaki Arai General Manager, Recycling Systems Promotion Department, Eco-Business Division, Mineral Resources & Recycling Business Unit achieve a recycling rate of X% by 2050” for instance – you could showcase your strengths and strategies on the way to achieving that. I think that would make Kenji Shimamura Executive Officer, General Manager, General Affairs Dept. your sustainable business strategy all the more persuasive. Akira Takeuchi Osamu Iida Hiroshi Kondo Jun Nagano General Manager, General Affairs & CSR Dept., General Affairs Dept. I used to take part in the Ministry of Economy, Trade and Industry’s committee on revising the Act on Recycling of Specified Kinds of Home Appliances, but Executive Vice President Managing Director Senior Executive Officer *The names of departments and titles are as of the date of the meeting. in charge of CSR President, Metals Company General Manager, Mineral the importance of adequately recycling metal did not come up for discussion, because it is already accepted as a given. As you have such a wealth of expertise (currently President) Resources & Recycling Business Unit  Facilitator in that respect, I would hope to see you playing a leading role within the industry, by actively lobbying government agencies and ministries regarding the social Daisuke Goto Representative Director, ideaship Inc. significance of recycling metal.

13 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 14 Our Sixth Stakeholders’ Meeting

Viewing recycling operations from a global perspective and strengthening public information capabilities

13 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 14 2014 Highlights

through our extensive overseas sales network, so Office that we can achieve our “Vision 2020,” the long- term business strategy for our Advanced Materials & Tools Company End mill manufacturing floor at the Yasu Plant Insert manufacturing floor at the Narita Plant 5 Yuzawa Geothermal Power Corporation starts work on Wasabizawa Geothermal Plant In May 2015, we started construction work on Wasabizawa Geothermal Plant in the city of 2 Development of the world’s first fluorine compound with Yuzawa, Akita prefecture. With an output of 42,000kW, this will be our third geothermal hydrophilic oil-repellent properties power plant, following in the footsteps of our Ohnuma Geothermal Plant (9,500kW) and Sum- ikawa Geothermal Plant (50,000kW). We are aiming to commence operations at the plant in Our subsidiary Mitsubishi Materials Electronic Chemicals Co., Ltd. has developed the world’s first fluorine compound with high-level hydro- May 2019, and will be placing top priority on safety and preserving the environment as we philic oil-repellent properties, using unique fluorine compound and organic synthesis technologies. continue with work. At present, materials used to combat dirt tend to have water- and oil-repellent properties, so that neither water nor oil adheres to them, An onsite ceremony to pray for safety was attended by a total of 35 people, including Mitsubi- or they have hydrophilic properties, so that rain and water easily wash dirt shi Materials Chairman Hiroshi Yao, Electric Power Development President Masayoshi Kitamura, away. This newly developed product however repels oil and at the same Oil Mitsubishi Gas Chemical President Toshiyuki Kurai, directors from Yuzawa Geothermal Power and time attracts water, meaning that it protects against oil-based dirt whilst Water Oil Mitsubishi Materials Techno President Yoshiaki Inaba. A subsequent groundbreaking ceremony at the same time enabling dirt to be easily washed away by water. These meanwhile was attended by 64, including Akita Prefecture Governor Norihisa Satake, Tohoku Safety ceremony (Wasabizawa) properties will enable products to be used to combat dirt in various different Bureau of Economy, Trade and Industry Director General Kazuhiro Morimoto and Yuzawa Mayor locations and environments. If coated onto a filter, this new product is also Mitsuyoshi Saito, all of whom offered their best wishes for the safe completion of construction. capable of instantly separating oil from water. This opens up potential applications across a wide range of industrial fields where it is necessary to separate oil and water, and for purposes such as preventing environmental pollution, as part of recovery operations following an oil spill for instance. Water Follow-up Ongoing earthquake reconstruction initiatives We are aiming to develop applied products that reflect the needs of our cus- Separation of oil and water tomers. Environmental restoration initiatives in Fukushima A whole host of operators are still carrying out full-scale decontamination in the Naoshima Smelter & Refinery wins 2014 Environment Minister’s Award for village of Iitate and the city of Minamisoma. For our part, we are continuing to 3 provide services such as post-decontamination radiation monitoring. Global Warming Prevention Activity Now that decontamination has been completed in certain areas, we have been Our Naoshima Smelter and Refinery was presented with the 2014 Environment Minister’s Award commissioned by the Ministry of the Environment to carry out post-decontamination for Global Warming Prevention Activity in the “Countermeasure Technology Introduction and monitoring, to measure levels of radiation based on the required level for people to Dissemination” category, in recognition of our efforts to prevent global warming and contribute return to their homes. to the local community. As part of measures to deal with designated waste* held by local authorities, we We have been working to reduce CO2 emissions at the Naoshima Smelter & Refinery since are also working to stabilize processing in order to prevent dispersal or leaks, reduce 2009, through measures such as installing high efficiency equipment, and have managed to cut air dose rates, and minimize levels of dissolved radioactive cesium. We have also Cement solidification and treatment facilities in operation emissions by a total of 41,552 tons. We have also reduced coal consumption by 6,030 tons a year been working to solidify approximately 3,000 tons incinerated fly ash into cement by using combustible recycled materials. Elsewhere, we have been engaging in environmental Presentation ceremony at the Nanbu Waste Disposal Center in Iwaki since April 2014. We had planned to awareness activities, by providing more opportunities for environmental education, and continue finish by March 2015. Having confirmed the presence of difficult-to-treat fly ash to organize afforestation activities aimed at restoring areas affected by forest fires. This award however, we extended the construction period as part of this project and completed comes in recognition of our ongoing activities, which will help prevent global warming now solidification processing at the end of May. and in the future We have also launched a pilot project to transport contaminated soil and other We remain committed to becoming “the world’s leading business group committed to support- selected materials that have been moved as a result of decontamination work to ing recycling-oriented society through materials innovation, with use of our unique and distinctive interim storage facilities. We intend to continue developing technology for the technologies” in the future, based on our corporate philosophy “For People, Society and the treatment and disposal of contaminated soil and other such materials, as well as Earth.” offering adequate processing solutions with an eye to final disposal. *Designated waste refers to waste exceeding 8,000 Bq/kg, as designated by the Minister of the Environment. Storing solidified cement

15 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 16 2014 Highlights

1 Establishment of Mitsubishi Hitachi Tool Engineering Ltd. 4 Commencement of operations at Mitsubishi Materials Southeast Asia Co., Ltd. We took the first step towards establishing Mitsubishi Hitachi Tool Engineering Ltd. as a member of the Mitsubishi Materials Group on April In an effort to reinforce governance of group companies in the Southeast Asia region, step up inter-de- 1, when we signed a share transfer agreement with Hitachi Metals Ltd. for 51% of issued shares in its wholly owned subsidiary Hitachi Tool partmental marketing activities, and improve sales support services, in February 2015 we reorganized Engineering Ltd. The company has outstanding capabilities in the fields of product development and added value solutions, underpinned our Southeast Asia Business Support Center, which was previously located in Bangkok (Thailand), and by coating and shaping technologies. We are aiming to achieve growth in the added value market for cutting tools in particular, focusing established Mitsubishi Materials Southeast Asia Co., Ltd. (or Mitsubishi Materials SEA in Japanese). We on the die industry, the aircraft industry and the energy sector. commenced operations at the new company in April. We intend to push full steam ahead with global As well as firmly establishing our management policy at group companies throughout the region, expansion revolving around the company’s product revolving around this new company, the aim is to strengthen corporate governance, compliance and development capabilities, based on its superior other aspects of corporate management. material technologies. We are also looking to maximize synergy and promote dynamic growth through our extensive overseas sales network, so Office that we can achieve our “Vision 2020,” the long- term business strategy for our Advanced Materials & Tools Company End mill manufacturing floor at the Yasu Plant Insert manufacturing floor at the Narita Plant 5 Yuzawa Geothermal Power Corporation starts work on Wasabizawa Geothermal Plant In May 2015, we started construction work on Wasabizawa Geothermal Plant in the city of 2 Development of the world’s first fluorine compound with Yuzawa, Akita prefecture. With an output of 42,000kW, this will be our third geothermal hydrophilic oil-repellent properties power plant, following in the footsteps of our Ohnuma Geothermal Plant (9,500kW) and Sum- ikawa Geothermal Plant (50,000kW). We are aiming to commence operations at the plant in Our subsidiary Mitsubishi Materials Electronic Chemicals Co., Ltd. has developed the world’s first fluorine compound with high-level hydro- May 2019, and will be placing top priority on safety and preserving the environment as we philic oil-repellent properties, using unique fluorine compound and organic synthesis technologies. continue with work. At present, materials used to combat dirt tend to have water- and oil-repellent properties, so that neither water nor oil adheres to them, An onsite ceremony to pray for safety was attended by a total of 35 people, including Mitsubi- or they have hydrophilic properties, so that rain and water easily wash dirt shi Materials Chairman Hiroshi Yao, Electric Power Development President Masayoshi Kitamura, away. This newly developed product however repels oil and at the same Oil Mitsubishi Gas Chemical President Toshiyuki Kurai, directors from Yuzawa Geothermal Power and time attracts water, meaning that it protects against oil-based dirt whilst Water Oil Mitsubishi Materials Techno President Yoshiaki Inaba. A subsequent groundbreaking ceremony at the same time enabling dirt to be easily washed away by water. These meanwhile was attended by 64, including Akita Prefecture Governor Norihisa Satake, Tohoku Safety ceremony (Wasabizawa) properties will enable products to be used to combat dirt in various different Bureau of Economy, Trade and Industry Director General Kazuhiro Morimoto and Yuzawa Mayor locations and environments. If coated onto a filter, this new product is also Mitsuyoshi Saito, all of whom offered their best wishes for the safe completion of construction. capable of instantly separating oil from water. This opens up potential applications across a wide range of industrial fields where it is necessary to separate oil and water, and for purposes such as preventing environmental pollution, as part of recovery operations following an oil spill for instance. Water Follow-up Ongoing earthquake reconstruction initiatives We are aiming to develop applied products that reflect the needs of our cus- Separation of oil and water tomers. Environmental restoration initiatives in Fukushima A whole host of operators are still carrying out full-scale decontamination in the Naoshima Smelter & Refinery wins 2014 Environment Minister’s Award for village of Iitate and the city of Minamisoma. For our part, we are continuing to 3 provide services such as post-decontamination radiation monitoring. Global Warming Prevention Activity Now that decontamination has been completed in certain areas, we have been Our Naoshima Smelter and Refinery was presented with the 2014 Environment Minister’s Award commissioned by the Ministry of the Environment to carry out post-decontamination for Global Warming Prevention Activity in the “Countermeasure Technology Introduction and monitoring, to measure levels of radiation based on the required level for people to Dissemination” category, in recognition of our efforts to prevent global warming and contribute return to their homes. to the local community. As part of measures to deal with designated waste* held by local authorities, we We have been working to reduce CO2 emissions at the Naoshima Smelter & Refinery since are also working to stabilize processing in order to prevent dispersal or leaks, reduce 2009, through measures such as installing high efficiency equipment, and have managed to cut air dose rates, and minimize levels of dissolved radioactive cesium. We have also Cement solidification and treatment facilities in operation emissions by a total of 41,552 tons. We have also reduced coal consumption by 6,030 tons a year been working to solidify approximately 3,000 tons incinerated fly ash into cement by using combustible recycled materials. Elsewhere, we have been engaging in environmental Presentation ceremony at the Nanbu Waste Disposal Center in Iwaki since April 2014. We had planned to awareness activities, by providing more opportunities for environmental education, and continue finish by March 2015. Having confirmed the presence of difficult-to-treat fly ash to organize afforestation activities aimed at restoring areas affected by forest fires. This award however, we extended the construction period as part of this project and completed comes in recognition of our ongoing activities, which will help prevent global warming now solidification processing at the end of May. and in the future We have also launched a pilot project to transport contaminated soil and other We remain committed to becoming “the world’s leading business group committed to support- selected materials that have been moved as a result of decontamination work to ing recycling-oriented society through materials innovation, with use of our unique and distinctive interim storage facilities. We intend to continue developing technology for the technologies” in the future, based on our corporate philosophy “For People, Society and the treatment and disposal of contaminated soil and other such materials, as well as Earth.” offering adequate processing solutions with an eye to final disposal. *Designated waste refers to waste exceeding 8,000 Bq/kg, as designated by the Minister of the Environment. Storing solidified cement

15 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 16 The Mitsubishi Materials Group at a Glance

Corporate Data (Non-consolidated) As of March 31, 2015 Financial Performance (Consolidated)

Company Name Mitsubishi Materials Corporation Total Assets ¥1,898,157 million Looking at the Mitsubishi Materials group’s operating “Pursuing a recycling-based business model” The Group Head Office 1-3-2, Otemachi, Chiyoda-ku, Tokyo 100-8117 Japan Number of Employees 4,448 (Consolidated: 23,413) Date Established April 1, 1950 Consolidated Subsidiaries 116 environment, ongoing yen depreciation affected business continued to implement a variety of measures based on President Akira Takeuchi (since April 1, 2015) Equity Method Affiliates 22 overall. Meanwhile, the Group faced such negative factors these strategies, established new overseas bases- Listings Tokyo Stock Exchange Membership Nippon Keidanren (Japan Business Federation), as construction delays and falling prices of copper and particularly in Asia—and began to refine its business Capital ¥119,457 million KEIZAI DOYUKAI (Japan Association of Corporate Executives), other key metals in overseas markets. focus, among other activities. Japan Cement Association, Japan Mining Industry Association, Against this backdrop, the Group embarked on the As a result, consolidated net sales for the fiscal year ICMM (International Council on Mining & Metals), etc. medium-term management plan (FY2015-2017), “Materi- amounted to ¥1,517,265 million, up 7.2% from the previ- als Premium 2016-challenge to become the world’s ous fiscal year. Operating profit increased 8.4% to Domestic Network □ Main Mitsubishi Materials premises ◇ Main Group companies leading business group.” This plan defines the groupwide ¥71,871 million, and ordinary income increased 5.5% to Kanto Region Kinki/Chugoku Region growth strategies of “Fortifying the foundation for ¥81,093 million. Net income increased 6.8% to ¥56,147 growth,” “Strengthening global competitiveness” and million. □ Head Office (Tokyo) ◇ Ryoko Lime Industry Co., Ltd. (Tokyo) □ Osaka Regional Head Office (Osaka Prefecture) □ Yokoze Plant (Saitama Prefecture) Cement ◇ Onahama Smelting & Refining Co., Ltd. (Tokyo) □ Sakai Plant (Osaka Prefecture) Metals □ Ceramics Plant (Saitama Prefecture) Electronic Materials ◇ Mitsubishi Shindoh Co., Ltd. (Tokyo) □ Ikuno Plant (Hyogo Prefecture) Metals & Components ◇ Mitsubishi Cable Industries, Ltd. (Tokyo) □ Akashi Plant (Hyogo Prefecture) Advanced □ Energy Project & Technology Resources ◇ Mitsubishi Aluminum Co., Ltd. (Tokyo) Materials & Tools Center (Saitama Prefecture) & Recycling ◇ Universal Can Corp. (Tokyo) □ Sanda Plant (Hyogo Prefecture) Electronic Materials Net sales Operating profit Ordinary income/loss □ Saitama Property Management ◇ Mitsubishi Materials Trading Corporation (Tokyo) & Components Office (Saitama Prefecture) ◇ Mitsubishi Materials Techno Corp. (Tokyo) ◇ Japan New Metals Co., Ltd. (Osaka Prefecture) [Billions of yen] [Billions of yen] [Billions of yen] □ Tsukuba Plant (Ibaraki Prefecture) Advanced ◇ Mitsubishi Materials Real Estate Corp. (Tokyo) ◇ Tachibana Metal Manufacturing Co., Ltd. (Osaka Prefecture) 2,000 120 140 Materials & Tools ◇ Materials’ Finance Co., Ltd. (Tokyo) □ Central Research Institute (Ibaraki Prefecture) Shikoku 1,517.2 120 1,500 90 100 Hokkaido □ Naoshima Smelter & Metals 81.0 Refinery (Kagawa Prefecture) 71.8 80 □ Sapporo Branch (Hokkaido) Kyushu 1,000 60 60

Tohoku Region Chubu/Hokuriku Region □ Kyushu Branch (Fukuoka Prefecture) 40 □ Higashitani Mine Cement □ Aomori Plant (Aomori Prefecture) Cement □ Nagoya Branch (Aichi Prefecture) (Fukuoka Prefecture) 500 30 20 □ Akita Reﬁnery (Akita Prefecture) Metals □ Gifu Plant (Gifu Prefecture) Advanced Materials & Tools □ Kyushu Plant Cement □ Iwate Plant (Iwate Prefecture) Cement (Fukuoka Prefecture) 0 □ Tohoku Branch (Miyagi Prefecture) □ Yokkaichi Plant Electronic Materials ◇ Mitsubishi Materials Electronic (Mie Prefecture) & Components 0 0 −20 11 12 13 14 15 ［FY］ 11 12 13 14 15 ［FY］ 11 12 13 14 15 ［FY］ Chemicals Co., Ltd. (Akita Prefecture) ◇ Diamet Corporation ◇ Hosokura Metal Mining Co., Ltd. (Niigata Prefecture) (Miyagi Prefecture) Net income/loss Net assets Total assets ＊The companies listed here are only a few of the overseas members of the Mitsubishi Materials Group. Global Network [Billions of yen] [Billions of yen] [Billions of yen] 1,898.1 80 700 629.5 2,000 Europe East Asia North America 56.1 600 Netherlands, United Kingdom, Germany, Canada, United States, Mexico China, Taiwan, Korea, etc.  Electronic Materials & Components 40 1,500 France, Spain, Italy, Russia, Poland MMC Electronics (HK) Ltd. (China) 500  Cement MMC Shanghai Co., Ltd. (China)  Cement  400 Advanced Materials & Tools Yantai Mitsubishi Cement Co., Ltd. (China) MMC Electronics Korea Inc. (South Korea) Mitsubishi Cement Corp. (United States) MMC Hartmetall GmbH (Germany) 0 1,000  Advanced Materials & Tools MMC Electronic Materials Taiwan Co., Ltd. (Taiwan) MCC Development Corp. (United States) Mitsubishi Materials España S.A. (Spain) 300 Tianjin Tianling Carbide Tools Co., Ltd.  Corporate  Advanced Materials & Tools MMC Hardmetal Russia Ltd. (Russia) (China) Mitsubishi Materials (Shanghai) Corporation (China) Mitsubishi Materials U.S.A. Corp. (United States) 200 MMC Hardmetal Poland, Sp.z.o.o. (Poland) −40 500  Electronic Materials & Components Mitsubishi Polycrystalline Silicon America Corp. 100 (United States) −80 0 0 11 12 13 14 15 ［FY］ 11 12 13 14 15 ［FY］ 11 12 13 14 15 ［FY］ South America Overseas operations in Southeast Asia countries Brazil ROA (return on assets) Net debt/equity ratio Thailand, Malaysia, Singapore, and regions 29 ● Advanced Materials & Tools Indonesia, India, etc. MMC Metal do Brasil Ltda. (Brazil) ［%］［Times］ 5 4.4 4  Metals P.T. Smelting (Indonesia) 4  Advanced Materials & Tools 3 MMC Tools (Thailand) Co., Ltd. (Thailand) 3 MMC Hardmetal India Pvt. Ltd. (India) Europe Others  Electronic Materials & Components 1.7% 0.9% 2 2 MMC Electronics (Thailand) Ltd. (Thailand) MMC Electronics (M) Sdn. Bhd. (Malaysia) Oceania Asia MMC Electronics Lao Co., Ltd. (Laos) 30.5% Sales 1 1.0 by location  Australia, etc. 1 Aluminum Japan U.S.A. MA Extrusion India Pvt., Ltd. (India) 60.5% 0  Corporate  Resources & Recycling 6.4% Mitsubishi Materials Southeast Asia Co., Ltd. (Thailand) Mitsubishi Materials (Australia) Pty. Ltd. (Australia) −1 0 11 12 13 14 15 ［FY］ 11 12 13 14 15 ［FY］

17 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 18 The Mitsubishi Materials Group at a Glance

Corporate Data (Non-consolidated) As of March 31, 2015 Financial Performance (Consolidated)

17 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 18  Net sales by business segment* Business Summary Others Cement 13.0% 12.5% Electronic Materials & Components The Mitsubishi Materials Group’s main lines of business cover products from basic materials Aluminum 10.4% Total In the electronic materials and components sector, we supply high such as nonferrous metals and cement through to areas such as metal processing, aluminum Net Sales Metals performance, high quality products in line with modern-day needs, Electronic 52.9% can manufacturing, semiconductors and other electronic products, energy and the environ- Materials & including semiconductor materials, electronic components and ment. Components energy saving products. Throughout our wide-ranging business activities, we always try to do our bit “For People, 3.7% Advanced Materials & Tools 7.5% Our products include polycrystalline silicon, which plays a crucial ＊ The net sales ratio is calculated based on net sales supporting role in our advanced information-led society, low-alpha Completion of sensor manufacturing Society and the Earth.” excluding internal sales between segments. solders, an area in which we boast an industry-leading share of plant in Laos the market, and sputtering targets that make the most of our alloy Cement development technologies. We also provide sensor products, in line In February 2015, we completed a new manufacturing plant for thermistor with growing levels of environmental consciousness in emerging sensors in the People’s Democratic Republic of Laos. Our newly expanded production framework will enable us to cater to growing demand for prod- markets, heat reducing energy saving coating products, and other Cement is an essential basic material for the construction of roads, ucts such as major distinctive products backed up by our technical capabilities in areas bridges, ports, buildings and other forms of social infrastructure. We appliances for the such as hydrophilic oil-repellent agents, which are attracting a great manufacture and sell everything from different types of cement through Chinese market and deal of attention within the industry thanks to their unique properties. to ready-mixed concrete and cement-related products, via our wide- motorcycles in other As advances in products and technologies continue to gather pace, parts of Southeast ranging business framework. As well as our domestic operations, we Increasing processing capacity for waste we are focusing on strengthening our marketing capabilities and on Asia. engage in global activities through manufacturing and sales facilities plasterboard providing the market with new products on a timely basis, in an effort in countries such as the US, China and Vietnam, where demand for ce- Plasterboard, which is widely used in construction for purposes such as to establish ourselves with a full range of “number one products.” ment is on the increase. Making the most of our outstanding technical wall coverings and ceiling panels, is mostly sent to landfill for disposal. capabilities meanwhile, we also supply high quality products including Fortunately, we have developed processing technology capable of turning low heat generating cement, ultra-high strength concrete cement and waste plasterboard powder into a resource for use as a raw material in non-shrink grout. cement, and are now able to accept Resources and Recycling At our cement plants, we detoxify difficult-to-treat waste waste plasterboard on a commercial products at ultra-high temperatures so that they can be recycled. basis. Having started working on plans We operate on a cross-sectional basis across all divisions involved in this sector, Actively taking in waste like this enables us to contribute to the for a five-fold increase in our recycling capacity for waste plasterboard powder focusing on resources, energy, and environmental recycling. We combine the establishment of recycling-oriented society. at our Kyushu Plant in July 2014, we pro- various different technologies we have at our disposal, as a complex business cessed a total of 31,000 tons groupwide entity, to create a “Materials Premium,” and contribute to the establishment of a Processing waste plasterboard over the course of fiscal 2015. recycling-oriented society through activities such as recycling and maintaining Geothermal power plants Recycling home appliances stable supplies of renewable energy.

① Resources We invest in overseas mines in order to secure long-term stable supplies of copper ore, coal and other resources, and to increase our Metals proﬁts. We also explore and develop mineral resources, and manage mining interests and mines in which we invest.

② Energy We make the most of our extensive range of technologies and considerable experience in the field of renewable energy, including Copper and other nonferrous metals are used for a wide range of geothermal, hydroelectric, ground heat and solar energy, and in fields associated with the nuclear fuel cycle, including nuclear waste purposes, including electrical wiring, piping for air conditioning disposal, in an effort to help create a sustainable society. systems, electric and electronic components, and automotive parts. ③ Environment and Working with home appliance manufacturers, we run five home appliance recycling companies, which between them operate six plants. We As part of our metals business, we manufacture and sell high recycling also coordinate with our unique smelting and cement recycling system to take in and recycle E-scrap and various other waste products. quality products worldwide, based on our high efficiency, low envi- Naoshima Smelter & Refinery wins ronmental impact “Mitsubishi Process.” We also boast the leading Environment Minister’s Award share of the global market for oxygen free copper and copper alloys, which offer highest possible levels of electrical conductivity. Our Naoshima Smelter & Refinery has reduced CO2 emissions by a total of Aluminum Business Making the most of our smelting technology meanwhile, we have 41,552 tons since 2009 and has achieved a reduction in coal consumption of 6,030 tons per year. In recognition of its activities, which also extend to established a system for recovering and recycling valuable metals areas such as environmental education As well as the Group’s aluminum rolling, extrusion, processing and can manufacturing from E-scrap. and afforestation, it was presented with businesses, we operate Japan’s only self-contained recycling system for used beverage In the precious metals sector, our “Mitsubishi Gold” brand has a the FY2015 Environment Minister’s cans, and are always doing our bit to help create a recycling-oriented society. proud history dating back over 100 years. We have built on that to Award for Global Warming Prevention As part of our extrusion operations, we operate a global extrusion business provide precious metal bullion products and services such as “MY Activity, as part of a scheme organized via manufacturing facilities in four other countries. Rolled aluminum products Aluminum beverage cans GOLD PARTNER” for consumers and end users. by the Ministry of the Environment. P.15 Award ① Rolled, extruded and The Mitsubishi Aluminum Group manufactures rolled, extruded and processed products that are used for a wide range of different purposes, processed products including aluminum beverage cans, vehicles, electronic components, air conditioners, solar cells and various consumer items.

② Aluminum beverage Universal Can Corporation manufactures aluminum beverage cans and supplies to a whole host of beverage manufacturers. It has cans also developed and been highly acclaimed for unique and high quality products such as aluminum bottle cans, embossed cans and Advanced Materials & Tools slim cans.

③ Aluminum beverage We have been operating a self-contained “CAN TO CAN” recycling scheme, whereby used aluminum cans are collected, melted, cast As well as cemented carbide tools, which are essential for process- can recycling and rolled back into new cans, within the Group for over 30 years now. ing various different metal components, we supply a range of core components designed to improve the safety and comfort of vehicles and aircraft, including engine and transmission parts. We operate manufacturing and sales facilities worldwide, in China Harnessing production technology capabilities to and other parts of Asia, the Americas and Europe. We provide create the WSX445 double-sided insert face mill high added value products and services in line with customers’ Afﬁliated Business needs, underpinned by many years of technical expertise and high To enable mills to cut lightly and levels of reliability. This enables us to play a supporting role in smoothly, the most common approach is We operate a range of afﬁliated businesses via our distinctive group manufacturing across a range of different sectors, especially in the to design edges on one side of an insert. companies, including engineering and trading companies. Lines of vehicle and aircraft industries, which tend to attract the very latest We have developed a new double-sided business range from manufacturing salt and mining coal, to pure gold Products MJC jewelry Hokuryo Corporation product that reduces cutting resistance, in materials and technology. cards made using gold from copper smelting, high quality MJC brand from DIASALT Co., Ltd. Open cast coal mine (Bibai, Hokkaido) thanks to its innovative shape. Doubling jewelry, tourist mines designed to revitalize communities using former mining sites, golf courses and even driving schools. We also make We also develop and manufacture high performance special the cutting edge means that products alloys such as metal foam, which has been thrust into the spotlight the most of our advanced technologies to play a key role in the geothermal and renewable energy sectors. can even be used in low-power energy WSX445 double-sided insert face mill in recent years, and recycle the rare metal tungsten, as part of our saving machinery. commitment to recovering used cemented carbide tools.

19 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 20  Net sales by business segment* Business Summary Others Cement 13.0% 12.5% Electronic Materials & Components The Mitsubishi Materials Group’s main lines of business cover products from basic materials Aluminum 10.4% Total In the electronic materials and components sector, we supply high such as nonferrous metals and cement through to areas such as metal processing, aluminum Net Sales Metals performance, high quality products in line with modern-day needs, Electronic 52.9% can manufacturing, semiconductors and other electronic products, energy and the environ- Materials & including semiconductor materials, electronic components and ment. Components energy saving products. Throughout our wide-ranging business activities, we always try to do our bit “For People, 3.7% Advanced Materials & Tools 7.5% Our products include polycrystalline silicon, which plays a crucial ＊ The net sales ratio is calculated based on net sales supporting role in our advanced information-led society, low-alpha Completion of sensor manufacturing Society and the Earth.” excluding internal sales between segments. solders, an area in which we boast an industry-leading share of plant in Laos the market, and sputtering targets that make the most of our alloy Cement development technologies. We also provide sensor products, in line In February 2015, we completed a new manufacturing plant for thermistor with growing levels of environmental consciousness in emerging sensors in the People’s Democratic Republic of Laos. Our newly expanded production framework will enable us to cater to growing demand for prod- markets, heat reducing energy saving coating products, and other Cement is an essential basic material for the construction of roads, ucts such as major distinctive products backed up by our technical capabilities in areas bridges, ports, buildings and other forms of social infrastructure. We appliances for the such as hydrophilic oil-repellent agents, which are attracting a great manufacture and sell everything from different types of cement through Chinese market and deal of attention within the industry thanks to their unique properties. to ready-mixed concrete and cement-related products, via our wide- motorcycles in other As advances in products and technologies continue to gather pace, parts of Southeast ranging business framework. As well as our domestic operations, we Increasing processing capacity for waste we are focusing on strengthening our marketing capabilities and on Asia. engage in global activities through manufacturing and sales facilities plasterboard providing the market with new products on a timely basis, in an effort in countries such as the US, China and Vietnam, where demand for ce- Plasterboard, which is widely used in construction for purposes such as to establish ourselves with a full range of “number one products.” ment is on the increase. Making the most of our outstanding technical wall coverings and ceiling panels, is mostly sent to landfill for disposal. capabilities meanwhile, we also supply high quality products including Fortunately, we have developed processing technology capable of turning low heat generating cement, ultra-high strength concrete cement and waste plasterboard powder into a resource for use as a raw material in non-shrink grout. cement, and are now able to accept Resources and Recycling At our cement plants, we detoxify difficult-to-treat waste waste plasterboard on a commercial products at ultra-high temperatures so that they can be recycled. basis. Having started working on plans We operate on a cross-sectional basis across all divisions involved in this sector, Actively taking in waste like this enables us to contribute to the for a five-fold increase in our recycling capacity for waste plasterboard powder focusing on resources, energy, and environmental recycling. We combine the establishment of recycling-oriented society. at our Kyushu Plant in July 2014, we pro- various different technologies we have at our disposal, as a complex business cessed a total of 31,000 tons groupwide entity, to create a “Materials Premium,” and contribute to the establishment of a Processing waste plasterboard over the course of fiscal 2015. recycling-oriented society through activities such as recycling and maintaining Geothermal power plants Recycling home appliances stable supplies of renewable energy.

19 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 20 Long-term management policy and medium-term management plan

We continue to make steady progress in our quest to become “the world’s leading business group” by achieving our “Materials Premium 2016” medium-term management plan, based on the vision set out in our long-term management policy for the Group.

Group,” including resources, raw materials, processed goods facilities, in line with our initial plans. Initiatives have included Long-term management policy and recycling. Through initiatives such as these, our aim is Groupwide growth strategies and progress establishing new sales facilities for cemented carbide products to become a company that makes a major contribution “For to date in locations such as Turkey and China, and opening a new elec- We formulated a new long-term management policy for the People, Society and the Earth”, in line with our corporate phi- tronic device plant in Laos. Group in 2014, and unveiled it to the public in May that same losophy. To achieve the targets under our medium-term management In terms of pursuing a recycling-oriented business model, year. plan, we have set out three groupwide growth strategies. we have continued to enhance recycling-oriented value chains In light of changes in the business environment to date, These are (1) fortifying foundations for growth (enhancing across all of our operations, from resources to materials, pro- and anticipated major changes in the future, the aim of this Medium-term management plan safety management systems and securing stable operations, cessed products and recycling. We have also started work on long-term management policy is to act as a compass to enable engaging in strategic investment, and continuously improving initiatives such as developing vehicle recycling systems in con- us to achieve our vision for a modern-day Mitsubishi Materials Our medium-term management plan “Materials Premium our financial position), (2) strengthening global competitiveness junction with auto manufacturers, and establishing a project Group in line with the times. 2016” is based on the concept “Challenge to be the world’s (expanding existing facilities, deploying new production and to convert food waste into biogas. The vision set out in our long-term management policy is that leading business group,” and is positioned as the first step sales facilities, and developing new customers and markets), In fiscal 2016, the second year of our medium-term manage- “we will become the world’s leading business group committed towards achieving our vision for the early part of the 2020s. and (3) pursuing a recycling oriented business model (pursuing ment plan, we intend to accelerate implementation of the to supporting recycling-oriented society through materials inno- As such, our focus during this stage will be on fortifying recycling-oriented value chains, and establishing a business aforementioned growth strategies, with an eye to achieving vation, with use of our unique and distinctive technologies.” In foundations. model that makes the most of Materials Premium, derived from our targets in the final year of the plan. this context, “materials” refers not only to resources, raw materi- In terms of profitability, we have set ourselves the manage- our unique strengths as a conglomerate. als and products, but to everything of value that the Mitsubishi ment targets of achieving consolidated operating profit of ¥100 In order to fortify foundations for growth first of all, we are Materials Group provides, including services, solutions and per- billion, consolidated ordinary income of ¥110 billion and ROA working to reinforce our safety management systems through Pursuit of a Industrial waste E-scrap recycling-oriented Byproducts sonnel. Our aim is to use technologies that differentiate us from of 6% by fiscal 2017, the final year of the plan. We are once activities such as launching a new Companywide Zero Accident value chain our competitors to create new value and achieve the following again trying to achieve targets under our previous plan for ordi- Project. We have also continued to engage in strategic invest- Processed Ready-mixed end goal. “By achieving its target No.1 status and earning the nary income and ROA. As well as pushing ahead with essential ment in the interests of sustained growth. In addition to specific copper products Metals concrete Cement Long-term management policy and medium-term plan trust of customers, each Mitsubishi Materials operation occupies investments in order to fortify our foundations, we will also be achievements to date, including the acquisition of shares in Copper smelting Cement (smelters) (Plants) an important position in each industry and market.” making further financial improvements. We aim to achieve a Hitachi Tool Engineering Ltd., we intend to continue with active Return of Supply of In particular, we plan to further strengthen “the recycling- net D/E ratio of 1.0 or lower in the final year of the plan. strategic investment in the future too. In terms of financial resources scrap materials 〈New〉〈New〉 oriented business model unique to the Mitsubishi Materials improvements, we have achieved our final-year target of a net Automobile Sorting and Automobile recycling companies Final disposal site dechlorination plants D/E ratio of 1.0 or lower a full two years ahead of schedule. recycling Recycling operations operations Support for Reclaimed Incineration With regard to strengthening global competitiveness mean- waste-vehicle items ash  Overview of long-term management policy (policy towards early 2020s) supply while, we are making steady progress reinforcing existing Incineration facilities Automakers Final treatment plants Corporate Philosophy overseas facilities, and deploying new production and sales For People, Society and the Earth Vision  Long-term management policy and medium-term management plan (fiscal 2015-17) We will become the world’s leading business group committed to supporting recycling-oriented society through materials innovation, with use of our unique and distinctive technologies 2014 2016 Early 2020s Image for scale of operations Net sales of ¥2 trillion or more and net income of ¥100 billion or more

The world’s Medium-term leading management plan Cement Recycling Resources Metals Long-term management policy business group

Materials Premium 2016 Target state Advanced Materials & Tools Electronic Materials & Components Challenge to be the world’s leading business group unique and distinctive technologies Further ﬂying up Aluminum Business Resources and Recycling

Period of medium-term By achieving its target management plan Afﬁliated Businesses Processed goods Materials No.1 status and earning Accelerating the trust of customers, Sustainable growth growth each Mitsubishi Materials operation occupies an important position in each Global strategy Fortifying the industry and market. foundation Personnel strategy Technology and development strategy

21 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 22 Long-term management policy and medium-term management plan

The world’s Medium-term leading management plan Cement Recycling Resources Metals Long-term management policy business group

21 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 22 The Mitsubishi Materials Group’s approach to CSR

We have set out our own CSR Deﬁnition and CSR Direction so that we can put our corporate philosophy into practice, which is our ultimate goal as a group. We aim to contribute to the sustainable development of society, whilst at the same time meeting the needs of our stakeholders.

in April 2010, to reﬂect changes in modern-day needs and Code of Conduct Incorporating Social Expectations into principles set out by International Council on Metals and Management Practices Mining (ICMM), of which we are a member. The 10 Articles of Our Code of Conduct

We run our business based on the Mitsubishi Materials Group Additions to Specific Details under the 10 Articles Article 1 We will seek to create a Mitsubishi Materials Group receptive to diverse personalities and value perceptions by encouraging each Corporate Philosophy and Code of Conduct, which outline the of Our Code of Conduct (April 2010) member of the Group to be fully motivated and committed to self improvement. overriding principles behind all of our management activities, • Sustainable development of society Article 2 We will engage in efficient business management and pursue sustainable corporate development. namely “The Principles We Stand on — For People, Society • Working to create a low-carbon society Article 3 We will respect the basic human rights of all people and create a spirited, safe and comfortable work environment. and the Earth” and “The 10 Articles of Our Code of Conduct.” • Implementing and maintaining sound corporate governance Article 4 We will conduct fair and equitable business transactions by providing safe, high-quality products, systems and services at reasonable In line with our Corporate Philosophy and Code of Conduct, • Prohibiting child labor and forced labor prices. in 2005 we established a framework for the promotion of CSR, • Striving to achieve a work-life balance Article 5 We will endeavor to secure the understanding and trust of society, and will maintain a harmonious coexistence with society. to ensure that we are trusted by society as a company. In 2006, • Continually improving occupational health and safety performance Article 6 We will comply with laws and regulations and conduct fair business activities with common sense. we set out a CSR Definition and a CSR Direction, with the inten- • Ensuring that products are designed, used, reused, recycled and Article 7 We will carry out our duties with integrity, in line with the rules and standards established by the Company. disposed of responsibly tion of rolling them out to Group companies. WEB Article 8 We will endeavor to protect the environment, and will apply every measure for effective uses and recycling of natural resources. Article 9 We will carry out proactive corporate communications, and will respect the values and inherent rights of all people with regard to

Revising our Corporate Philosophy and Code of Having set out a new vision under our long-term management information. approach to CSR Mitsubishi Materials Group’s The Conduct to reflect modern-day needs policy in April 2014, we also made partial revisions to our Corpo- Article 10 We, as members of the international community, will contribute to the development of each region where we maintain a presence. We formulated “The 10 Articles of our Code of Conduct” in rate Philosophy and Code of Conduct to reflect the spirit of our 1997. We later revised specific details of our Code of Conduct new vision. Response to Key Comments from Stakeholders We consider comments and suggestions from our stakeholders to be an invaluable source of information, which we can then use to  Outline of the Mitsubishi Materials Group’s approach to CSR improve our CSR activities and CSR Reports. We have launched a number of initiatives in response to key comments and requests, including the following. Realization of our Corporate Philosophy For People, Society and the Earth Shareholders Customers Key comments and their source Group response and investors Corporate customers General consumers • Promoting “pursuing a recycling-oriented business model” as part of our medium-term management plan Contributing to society Expectation • Making greater use of urban mines (recycling E-Scrap) Environment-friendly Continuing to expand and improve ① ②③ through core business Social expectations • Promoting automotive recycling business perspective Employees Local resource recycling measures ④⑥ (products and services) communities • Working to achieve targets for establishing a recycling-oriented society and contributing to the environment, and Economic Dialogue publishing reports outlining our results responsibility • Implementing continuous, multi-faceted initiatives to save energy and reduce CO2 emissions at all production facilities NGO/ Promoting measures to combat Suppliers ①②③ • Promoting the use of sustainable energy (geothermal, ground source, hydraulic, solar) over the medium to long term NPO global warming (especially from a Ethical responsibility • Placing a greater emphasis on developing and providing environmental technologies and products that will help save long-term perspective) ④⑥ Confidence energy and reduce CO2 emissions Compliance responsibility Meeting needs Disclosure of information/ Government Environment • Obtaining the forest certification by SGEC for company-owned forests and promoting sustainable forest management Preserving biodiversity (company- ②③④ Accountability • Confirming that biodiversity has been factored into mines in which we invest, and carrying out preservation activities The Mitsubishi Materials Group owned forests, areas around mines) ⑤⑥ at facilities located adjacent to national parks. • Expanding efforts to encourage suppliers to comply with our Procurement & Logistics Division CSR Procurement CSR Definition CSR Direction Guidelines Respecting human rights ①②③ • Promoting communication with local communities around mines in which we invest, and making more of an effort to throughout the supply chain ④⑤⑥ take into account people’s lives and the natural environment 1 Respecting relationships with people: Reinforcing ties to stakeholders • Obtaining certification for conflict-free minerals (gold, tin, tungsten) The Mitsubishi Materials Group is an ensemble of compa- Through mutual communications, plants and companies under the Group • Stepping up measures to prevent a recurrence of the accident at the Yokkaichi Plant nies operating under the composite profile of a compre- Preventing accidents and ①②③ umbrella will go to great lengths to maintain favorable perceptions of the • Reestablishing health, safety and disaster prevention frameworks on a groupwide scale through our Zero Accident hensive basic materials maker. As a group, we provide reinforcing safety measures ④⑤⑥ Group — as held by shareholders, customers, suppliers, employees and other Project resources, basic materials and energy indispensable to stakeholders — deepen their understanding of stakeholder points of view, Developing human resources ②③④ • Continuing to step up global human resource development modern lifestyles, and in these efforts, we adhere to a cor- and work hard to ensure a high level of stakeholder satisfaction. capable of tackling global issues ⑥ • Developing and harnessing overseas human resources porate philosophy that emphasizes efforts that contribute • Identifying issues and discussing measures via the Women’s Empowerment Committee 2 Respecting promises made to society: Ensuring thorough Promoting greater roles for a ②③④ to people, society and the Earth. diverse range of human resources ⑤ • Reemploying retired employees and hiring disabled employees compliance and risk management practices CSR for the Group thus hinges on making this philoso- • Maintaining stable supplies of cement phy a reality, through the sincere fulfillment of the obliga- We will systematically reinforce levels of compliance and risk management Contributing to recovery from the ②③⑤ • Turning copper slag into a recycled resource tions and expected role that society places on a corporate to ensure legal compliance — a vital prerequisite for expanding corporate ac- Great East Japan Earthquake ⑥ • Participating in decontamination operations in Fukushima, and carrying out research and development to find medium- to long-term solutions to help restore the environment citizen, disclosure of the approaches taken—with proper tivities — and to prevent business-related problems from arising. Expanding the scope of • Expanding the scope of Group companies subject to reporting for CO2 emissions data explanation—and the constant pursuit of two-way com- 3 Respecting the Earth: Reducing environmental impact ② quantitative data included in reports • Including 23 group companies, in addition to Mitsubishi Materials, within the scope of reporting for safety data munication with stakeholders to promote greater mutual In our activities, which serve to reduce environmental impact, we will direct Reviewing important aspects of our efforts toward such measures as saving energy and resources, cutting waste ② • Reviewing material issues affecting the Group, and restructuring our CSR Report understanding. CSR Report These actions will underpin a position of trust in society. and limiting the use of hazardous substances. ①Stakeholder Meeting, ②independent assurance/third party assessment, ③ reader questionnaire, ④ dialogue with investors (SRI surveys, ESG meetings, etc.), ⑤ direct dialogue with local communities, etc., ⑥ trends relating to suppliers, customers, NGOs, etc.

23 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 24 The Mitsubishi Materials Group’s approach to CSR

23 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 24 Initiatives on Material Issues

Here at the Mitsubishi Materials Group, we have set out seven material issues that we need to tackle as part of our business activities, and have incorporated them into our business strategy. We have reviewed our previous nine material issues and reorganized them into seven themes, in line with changes in the external environment. Mitsubishi Materials’ Seven Material Issues We are committed to stepping up initiatives across all related divisions based on our seven material issues, and continue to disclose details of our activities and results in our reports. We identified nine material issues (factors that could have a Purpose of identifying material issues serious impact on our corporate value) to be addressed in fiscal Material issues Background and key initiatives Relevant pages 2008, and have continued to revise those issues on a regular ① Business Strategy To identify potential business risks and opportunities in the interests With growing worldwide demand for resources, especially in emerging countries, risks relating to basis ever since, always keeping the purpose outlined on the of the sustainability of society as a whole and to pinpoint the most resource procurement are on the increase due to factors such as export restrictions and human right in mind. Seven years on, we have carried out a material important issues from a business standpoint so as to incorporate rights issues in resource-producing countries. Whilst continuing to purchase ore primarily from issue assessment, as outlined below, and whittled down our them into our business strategy Resources and mines in which we invest, we are also working to strengthen relationships with mining and mineral PP. 9-14 PP. 29-34 existing nine to seven, to reflect major changes in the external ② Accountability Recycling producing companies and diversifying raw material sources, as well as ensuring that development environment. To disclose details relating to material issues that are of particular takes into account local companies and the surrounding environment in resource-producing areas. interest to our stakeholders and likely to have a significant impact on We are also committed to rolling out our unique recycling-oriented business model, in order to their decisions on an ongoing basis via our Corporate Social Respon- secure recycled resources and contribute to resource recycling, both at home and overseas. Initiatives on Material Issues sibility Reports Companies are finding themselves under increasing pressure to reduce the environmental impact of their business activities and step up measures in response to environmental issues. We make every effort to comply precisely with environmental regulations throughout the Group, and to Outline of our material issue assessment Environmental reduce a wide range of substances of concern in terms of environmental impact. As well as preservation and integrated initiatives aimed at preventing global warming and establishing a recycling-oriented PP. 35-48  Identifying individual issues  Building on the examination and review process technology society, in line with the characteristics of each of our businesses, we are also focused on areas such To ensure that we examine issues from various different angles in Making the most of the process of compiling our CSR Report, we have as preventing pollution and preserving biodiversity. We are similarly committed to initiatives such relation to sustainability as part of this process, we started with the continued to review material issues on a regular basis, in line with as creating renewable energy to help reduce environmental impact, maintaining our extensive GRI (G4) guidelines on CSR disclosure, and then added in ISO 26000, trends relating to our stakeholders. We then disclose details of our company-owned forests, and developing environmentally friendly products and technologies. the OECD Guidelines for Multinational Enterprises and questionnaire activities in our CSR Report. (GRI Application Level A+) To maintain sustainable growth, companies need to enable a diverse range of human resources to subjects from investment institutions. As a result, we ended up This time however, we carried out a comprehensive examination and, make the most of their abilities. We are committed to developing and harnessing human resources, Developing and identifying a total of 79 individual issues. whilst persevering with our existing priorities, decided to review and both in Japan and overseas, and are actively focused on initiatives such as promoting greater  Prioritizing issues reorganize our material issues into seven themes. harnessing a roles for female employees, ensuring an adequate work-life balance, and improving benefits and PP. 49-52 We then reassessed each of these 79 issues from the standpoint of We will continue to carry out regular reviews, reflect our findings in diverse range of welfare. We also engage in ongoing initiatives aimed at ensuring basic human rights and creating reports, and respond to our stakeholders in the future. “business” and “stakeholders.” human resources friendly, safe and pleasant working environments for all. Initiatives such as these have the added bonus of creating a shared awareness based on partnership between labor and management. Ensuring employees health and safety must always be one of the top priorities of any company. Based Key perspectives for regular reviews (based on GRI Guidelines) on our philosophy of putting safety and health first in everything we do, and on our experience Occupational dealing with serious accidents in the past, we are committed to promoting health and safety activities [Internal factors] Management perspective [External factors] Stakeholders’ perspective health and safety throughout the Group. We try to implement initiatives from every angle, including improving individual PP. 53-56 ① Key areas of interest, issues and indicators raised by stakeholders in ① Relationship to the Group’s corporate value, policies, strategies, corporate awareness and capabilities, refining procedures and processes, upgrading facilities, and creating relation to sustainability management systems, goals and targets positive working environments from both a physical and psychological point of view. ② Industry-specific issues and future priorities reported by peers and ② Areas of interest to stakeholders and their expectations that could particu- competitor larly provide a source of growth for the Group Companies are required to monitor and take into account the social and environmental impact ③ Legislation, regulations, international agreements and voluntary ③ Significant risks to the Group of their business activities at every stage of the value chain. We keep a close eye on conditions at agreements of strategic importance to the Group and its stakeholders ④ The Group’s core competencies and the manner in which they can or could Responsibility the companies that supply us with raw materials and products, and do our best to ensure that no ④ Impact of sustainability risks and opportunities identified as a result of contribute to sustainable development throughout the human rights violations are committed at any point in our global supply chain, based on our CSR PP. 57-60 reliable external research, etc. value chain Investment Standards and CSR Procurement Guidelines. We are also committed to ensuring that our products are safe and reliable, from the design and development stages all the way through to manufacturing and shipping. To promote CSR activities, it is essential for companies to keep track of global trends, and identify  New seven material issues the needs and expectations of their stakeholders, so that they can incorporate them into their Stakeholder management activities. Companies also need to disclose information that is of interest to their Needs and PP. 61-66 Expectations communication stakeholders. We make every effort to disclose information via our CSR Reports and website, Resources and recycling and continue to promote dialogue and consultation with our stakeholders, whilst also improving communication through activities such as Stakeholder Meetings. Environmental preservation and technology Companies need to establish mechanisms to enable them to make decisions transparently, fairly and quickly, and to adequately audit their operations, in line with the needs of customers, local Developing and harnessing a Occupational health and safety communities, suppliers, shareholders, employees and other stakeholders. In addition to continually diverse range of human resources improving our corporate governance systems so that we can make appropriate decisions as quickly Stakeholders

Integrating into Integrating business strategy as possible, we continue to strengthen our internal auditing capabilities and reinforce governance Responsibility throughout the value chain Governance PP. 67-72

Promoting communication with stakeholders in terms of groupwide management, including overseas. We also strive to reinforce compliance, as

Governance social and Incorporating considerations environmental into business processes Conﬁdence the cornerstone of corporate management, and implement risk management activities across every aspect of our business, as well as putting in place business continuity plans (BCP) in case of an emergency and constantly strengthening our risk management systems in areas such as disaster prevention and security.

25 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 26 Initiatives on Material Issues

Promoting communication with stakeholders in terms of groupwide management, including overseas. We also strive to reinforce compliance, as

25 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 26 Activities during ﬁscal 2015 and priorities for the future

Having identified main categories based on our nine material issues, we map out the purpose of our activities, set ourselves targets and carry out CSR activities accordingly. We intend to report on and examine the results of our activities during fiscal 2015, including self-assessment grades, and incorporate our findings into our activities for the future. New Self- Main material Purpose of activities Activities During Fiscal 2015 assess- Targets/plans for activities from fiscal 2016 onwards Categories Self-assessment grades issues ment A: Target achieved B: Target mostly achieved • Continue to promote the Zero Accident Project • Continue to promote Zero Accident Project • Reinforced safety management systems throughout the Group  Results of activities during fiscal 2015 and targets/plans for improvements from fiscal 2016 onwards C: Target not achieved • Maintain a continuous PDCA cycle for health and safety, based around • Further enhanced ability to identify risk in advance occupational health and safety management systems Health and • Carried out comprehensive safety inspections based on operating • Work to eliminate hazards in the workspace through risk assessment New Self- Promoting health and safety activities Main B material Purpose of activities Activities During Fiscal 2015 assess- Targets/plans for activities from fiscal 2016 onwards safety procedures • Lay foundations for health and safety education, and practical hazard Categories issues ment • Increased occupational health staff and developed health simulation training Occupational management framework • Establish health management system Ensured the long-term stable supply of limestone resources through • Limestone supply target for Kyushu Plant health and safety • Prevention of mental disorders • Implement system to check for and to prevent mental health issues the joint venture between Higashitani Mine and the adjacent mine [FY2016 target: 3.25 million tons] Cement A Maintained list of suppliers and continued to raise awareness amongst Continue to raise awareness of CSR Procurement Standards amongst [Target supply to Kyushu Plant: 3.2 million tons ⇒ Actual: 3.4 million *Subject to change depending on joint venture operations with other less informed suppliers suppliers B tons] companies [FY2015 target: 50 companies / Actual: 40 companies] [FY2016 target: 50 companies] • Step up technical involvement with an eye to improving operations at • Continued to operate our conflict mineral management system, and • Continue to operate our conflict mineral management system, Ensuring stable • Improve operations of existing projects mines in which we invest CSR procurement Metals Dealing with obtained certification for gold (LBMA) and tin (EICC) A undergo third-party audit, and renew certification for gold (LBMA) and procurement of • Make steady progress with Zafranal Project B • Get more actively involved in Zafranal Project CSR initiatives Securing the issue (Metals Company) tin (EICC) every year raw materials • Realize further new projects • Continue investigating new projects procurement of conflict Resources and quality • Obtained certification of conflict-free smelter for tungsten at Japan • Continue with initiatives in line with our policy on the use of Advanced Materials Reduced percentage of products from China and increased volume of Diversify tungsten ore purchasing and establish overseas scrap recovery alue chain minerals A management New Metals A conflict-free minerals ahead of our next renewal screening date in & Tools scrap recovered system (Advanced Materials & Tools Company) October 2017 (Japan New Metals) the v Electronic Materials Adapt to changes in demand and continue to diversify procurement Diversify procurement sources through measures such as process • Stepped up receipt and dissemination of information through quality • Continue to step up receipt and dissemination of information through sources A & Components improvements Responsibility throughout committee meetings, etc. quality committee meetings, etc. Reinforcing chemical management A Securing stable supplies of coal as a Step up monitoring of mine development processes and policy trends in • Gathered information and created organizations to ensure • Continue to gather information and create organizations to ensure Secured repeat purchases of new coal delivered to users source of energy A coal-producing countries compliance with legislation in each country compliance with legislation in each country • Organized press releases and interviews Number of press releases/interviews • Increase intake of thermal power plant coal ash, sewage sludge, etc. Communication Steadily processing industrial waste as Processed and treated approximately 4.088 million tons of wastes and • Increase range of new items processed (incinerated ash from Ensuring timely and appropriate • Improved website and Group newsletter, and produced corporate A [FY2016 target: Increase from 200 to 205] with raw materials (Cement) byproducts (approx. 421kg per ton of cement) A municipal waste, etc.) disclosure, and promoting understanding profile DVD • Relaunch website before end of FY2016 shareholders • Continue to upgrade quality of limestone in order to increase intake of our business Organized briefings for investors Organize meetings with overseas investors and investors A Upgrade E-scrap intake and processing facilities at Naoshima Smelter [FY2015 actual: 237 meetings] [FY2016 target: 50 meetings] • Establish overseas business premises to reinforce overseas collection Expanding recycling operations (Metals) & Refinery framework A • Ascertain customer satisfaction (CS) on a regular basis via mail order, Establish system capable of processing over 100,000 tons per year Promoting CS activities

Resources and Recycling fairs, website, etc. • Incorporate customer reviews into new website (Mitsubishi Materials Trading) A Look into options for increasing volume of scrap recovered overseas, for • Continue consumer training support activities Promoting recycling of tungsten Engaged in customer PR and exhibited at JIMTOF, in an effort to B recovery after technologies have been established and facilities installed Communication • Improve domestic exhibitions and information meetings for important (Advanced Materials & Tools) expand recovery sources • Japan: Organized PR events and technical exchange meetings for to process difficult-to-treat materials with customers customers Activities during fiscal 2015 and priorities for the future Recycling important customers Communication with customers • Continue to organize information meetings for important customers in Promoting recycling of fluorine resources Continue to improve technologies in order to expand the scope of Continue to expand the scope of materials that can be processed and • Overseas: Organized Group PR events in China and Thailand A A China and Southeast Asia (Electronic Materials & Components) materials we can process develop new recovery sources [FY2015 target: 5 events / Actual: 9 events] [FY2016 target: 5 meetings] Facilitating the 3Rs as part of aluminum Recycled aluminum used beverage cans as part of the Japan Aluminum can operations (Aluminum) Can Recycling Association’s secondary voluntary action plan to A • Provide support for recycling operations at Universal Can Corporation • Organized a sixth stakeholder meeting, and shared information on (3Rs = Reduce, Reuse, Recycle) promote the 3Rs via aluminum beverage cans the possibilities and issues of recycling from urban mines • Organize a seventh stakeholder meeting Communication with stakeholders • Examined material issues and reorganized issues into seven themes • Increase opportunities for communication through activities such as Other types of Promoting disclosure and improve • Achieved 21.2% share of the domestic home appliance recycling • Maintained Application Level A+ under GRI Guidelines and prepared ESG meetings for investors Recycling increasingly sophisticated communication communication B market (weighted ratio, leading domestic share for a material for compliance with G4 Guidelines • Coordinate internal preparations for compliance with G4 Guidelines home appliances and become the manufacturer) • Expanding increasingly sophisticated recycling of home appliances leading processor of E-scrap in Japan A • Expand applications for vehicle recycling technologies • Expanded the scope of disclosure of environmental and distribution- • Expand the scope of disclosure for safety data, etc. • Entered vehicle recycling sector and secured high added value related data (Mineral Resources & Recycling) materials for use as resources Establish an evaluation framework for • Reduced labor and improved effectiveness through activities such • Introduction of email delivery system for information on legislation in • Share and rectify issues in need of improvement based on the results Complying with environmental • Production facilities: Management for pollution prevention and internal control over financial reporting as rectifying queried sections of documentary surveys and providing A individual overseas countries of the documentary surveys carried out in FY2016 legislation chemical substance management and an internal auditing system explanations via coordination meetings, etc. • Organizing explanatory meetings ahead of the switchover to ISO Continuing to reduce environmental • Overseas facilities: Development of environmental management B 14001:2015 • Improving overseas documentary surveys in each country: Produced impact • Ensured adequate management of closed mines • Ensuring adequate management of closed mines Improve internal auditing at overseas survey form for Indonesia in FY2015 • Produce documentary survey form for the US in FY2016 Environmental premises, especially in emerging • Transferred responsibility for selected auditing operations at A • Outsource selected auditing operations and reinforce auditing systems Preservation • Undertook activities to protect rare species of plants in nature Governance countries management company in China, and rectified issues with at management company in Thailand Promoting biodiversity-oriented activities conservation areas A Implementation in line with plans for individual facilities documentary surveys as quickly as possible • Conducted tree-planting activities at mines • Supported subsidiaries in improving business operation  Provided Ensuring sustainable management of Made preparations to file additional applications for eight major A Create database for company-owned forests, using forest information support with three subsidiaries at their request Provide support for business process improvement to domestic non- company-owned forests forests, in addition to Hayakita Forest systems such as GPA and GIS Support group companies in improving consolidated subsidiaries that are to be consolidated their business operations • Introduced group accounting system, provided relevant support and A • Shared information/details of successful improvements via the • Continue to roll out successful improvements in the field of energy improved operational efficiency [FY2016 Target: Support improvement at 5 companies] Energy Saving Committee saving • Strengthened internal control (reviewed and improved business flow) Promoting energy saving initiatives • Organized Eco Contest A • Share information and roll out Eco Contest winning entries • Organized four Compliance Panel meetings and discussed matters • Established systems for surveying and gathering data including • Provide support for initiatives involving new energy saving such as policy development in detail • Establish working group to look into individual policies, as part of the greenhouse gas emissions technologies Reinforce compliance framework • Established clear reporting rules for compliance issues within the B Compliance Panel, and strengthen cooperation throughout the Group Efforts to Formulating and promoting low-carbon Mitsubishi Materials Group (formulated guidelines) Combat Global society strategy Formulated new targets for 2020 A Monitor progress towards targets and look into revising targets Warming • Maintaining and improving framework • Conducted geothermal surveys and development in new areas and • Maintained system of providing CSR/compliance training for all • Improve contents of training for instructors (diversify teaching to enable all Group Group employees once a year engaged in dialog with communities Wasabizawa area: Proceed deliberately but cautiously with construction A materials) Promoting geothermal development • Strengthened cooperative relationships with joint venture partners plans and related measures Compliance employees to undergo [Actual number of employees in FY2015: 15,030 (actual total for A Improving • Organize training and other activities to improve instructors’ skills • Held discussions with local residents via Environmental Preservation Appi area: Start environmental assessment CSR and compliance previous year: 13,528)] Environmental Preservation and Technology Meetings, established with the aim of sharing information training training once a year • Looked into themes for new business development in the field of • Improving training • Organized CSR, risk management and environmental training at Strengthen cooperation with local management companies Promoting the exploration of themes and Promoting environmental recycling A Promote new business development at overseas Group three Group companies in Thailand (for 86 employees at manager A (China, Thailand), in an effort to step up activities across China and Environmental development of technologies • Issued one press release on fluorine recycling technology companies class) Southeast Asia Technology and Raise awareness of and effectively Promoted in-house reporting systems during training sessions and

Strengthening internal and external Promoted technological exchange with Group companies Governance Products Promote collaborative development with customers B • Look into reinforcing systems, including at Group companies cooperation Carried out joint R&D with universities in Japan and overseas B operate the in-house reporting system other activities (reports received in fiscal 2015: 23) • Organized a wide range of training programs in line with increasingly • Strengthened management cooperation in areas such as accident response, compliance and crisis management (established specific diverse human resources needs, available to all employees including • Continue to expand global training for young employees • Introduce specific measures to strengthen cooperation on risk Establish in-depth risk management measures and a clear schedule) those at Group companies (also organized new position-specific and • Look into, formulate and implement national staff training programs management, in order to prevent accidents and compliance issues Promoting human resource development A practices • Began establishing a framework for risk management activities at B optional training for selected employees) • Continue to review activities in line with increasingly wide-ranging • Carry out systematic follow-up activities at overseas Group companies • Provided on-the-job training (OJT) overseas in line with global human needs overseas Group companies, and organized follow-up training in resource education Southeast Asia • Carried out drills in conjunction with support facilities and reinforced [India] Finished supplementing market, customers and systems [India] Bring supplementary local staff up to standard as soon as possible • Select operations to be transferred to support facilities and establish disaster prevention systems at Head Office, in the event of a loss of Securing and utilizing talented local [Southeast Asia] Reinforced management structure and increased [Southeast Asia] Make use of local staff to get operations at new backup systems B functions at Head Office members of staff at overseas facilities numbers of local staff companies off the ground as quickly as possible • Provide support for the formulation of BCP at facilities lacking in such • Formulated response procedure in the event of an outbreak of an [China, Southeast Asia] Continue to provide training for local staff [China] Delegate real authorities to local staff A documentation Human Reinforce the crisis management infectious disease Continued to publicize and raise awareness of groupwide internal • Promote shop-floor reform initiatives incorporating a wide range of Risk • Provide support for the establishment of independent crisis resource Establishing culture of craftsmanship framework • Checked progress with the establishment of BCP and earthquake reform activities, organized companywide panel meetings and improvement methods, including TPM, TQM and JIT Management management systems throughout Asia (monozukuri) and promote groupwide response manuals development opportunities for exchange in the workplace, and rolled out activities A • Organize presentations outlining successful initiatives and workplace internal reform initiatives • Organize regular drills to improve initial response capabilities (drills for such as awards for successful improvements exchange sessions Improved initial response level via the Crisis Management Committee Human Resources B initial response, assembly, preparing equipment, AED, etc.) • Formulate and implement action plans at each Group company and Secretariat [FY2016 target: Once a month] Promoting disabled employment • Rate of disabled employment [Target: 2.5% ⇒ Actual: 2.34%] B in-house company • MMC and domestic Group companies: Repeated the PDCA cycle in • Achieve a 2.5% rate of disabled employment • MMC and domestic Group companies: Maintain and increase levels activities, and strengthened technical security measures for smart of security mainly through repeated implementation of the PDCA • Distributed information to managerial staff to raise awareness of devices

Training and Harnessing a Diverse Range of cycle in activities reduced hours • Continue to implement reduced-hours scheme aimed at reducing • Overseas Group companies: Strengthened technical security Information security A • Overseas Group companies: Reinforce technical security measures, and Promoting work-life balance • Implemented reduced-hours scheme aimed at reducing overall A overall working hours measures and coordinated with management systems improve and expand coordination with management systems working hours • Look into systems to support a wide range of working patterns [FY2015 target: 16 business premises ⇒ Actual: 18 business [FY2016 target: 9 companies] • Percentage of paid holiday taken [Target: 80% ⇒ Actual: 82.3%] premises]

27 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 28 Activities during ﬁscal 2015 and priorities for the future

27 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 28 Material Issues Resources and Recycling 1 From maintaining stable supplies of materials and products to recycling as decontaminating and processing large volumes of rubble from premises and the adjacent Kokura Mine, which is operated by As a diversiﬁed material manufacturer, we have an important duty to maintain reasonable prices, uphold fair trade and ensure the Great East Japan Earthquake using our high-temperature Sumitomo Osaka Cement Co., Ltd. Having started mining in July the stable supply of our products. burning process for cement. 2012, this will enable us to effectively tap into approximately We make every effort to secure stable supplies of resources by investing in promising overseas mines, strengthening relationships Our expert knowledge of materials is what enables us to recycle 300 million tons of untouched limestone. We are already mining with our suppliers and promoting recycling. and reuse the precious resources that nature provides. We take approximately 3.4 million tons from this new area annually, and pride in that fact and are determined to become the world’s hope to ultimately mine 5 million tons per year in the future, leading business Group committed to supporting recycling equivalent to roughly half of the output from our Higashitani mine. oriented society. At the Une Mine operated by Ryoko Lime Industry Co., Ltd. As Japan is reliant on imports from other countries for the meanwhile, we worked with one of our neighboring mining part- Securing Stable Products Supplies: Copper Products Issues surrounding resources and our role majority of its mineral resources, one of our top priorities must be ners to stabilize a long retaining wall, which has given us access to Since the closure of our Akenobe Mine in 1987, we have been to secure resources and maintain stable supplies of the materials new seams of limestone Our role as a diversiﬁed material manufacturer reliant on imports from overseas mines for copper concentrate, the and products that the Japanese people need, whilst at the same from 120 meters below As a group rooted in the coal and mining industry, dating back to main raw material used in our products. To ensure stable procure-

time ensuring reasonable prices and upholding fair trade. We con- the existing level. We will Resources and Recycling the birth of the Mitsubishi Group, we have continued to play a ment, we have therefore continued to invest in overseas mines. sider this to be another of our key roles as a diversiﬁed material continue to work with supporting role in the modernization of Japan. Through various Depending on our level of investment, we also assign personnel to 1 manufacturer, in the interests of resource security as well as main- neighboring mines at changes over the years, we have continued to improve our techni- mines in other countries, and provide support to ensure that mines taining the competitiveness of the wide-ranging industries that both locations in the cal capabilities as a diversiﬁed material manufacturer, whilst are developed sustainably in the best interests of the environment constitute our customers. future, in an effort to sta- supplying the basic materials that we all need and doing our bit to and the local community. In June 2011, operations started as part bilize operations even enrich people’s lives. The growing importance of resource recycling of a project to redevelop Copper Mountain Mine in Canada, in further. Demand for mineral resources has skyrocketed in recent years, With so many different challenges becoming apparent in the which we have a 25% stake. This has taken our captive mine ratio Higashitani Mine (Fukuoka prefecture)

due to industrial development in emerging countries. While resource sector, there has been a renewed focus on the to around 27%. international capital continues to extend its dominance, in the importance of resource recycling. In the EU for instance there has From a longer-term perspective, we are also working on a form of major global resource suppliers, we are also facing been much discussion regarding the concept of a “circular number of joint exploration projects in an effort to secure interests Securing Stable Products Supplies: economy.” increasing restrictions on resources as a result of more and more in promising mining areas as soon as possible. In the Namosi area Cemented Carbide Products resource-producing countries imposing export restrictions as part One of the key characteristics of our operations here at the of Fiji for instance, we are currently carefully undertaking of protectionist policies. Mitsubishi Materials Group is our “urban mine” recycling business, pre-feasibility studies. In June 2013 meanwhile, we signed up to Over 80% of worldwide demand for tungsten, the main raw  ICSG* worldwide copper demand forecast which enables us to extract (recycle) resources more efﬁciently and acquired a 20% interest in the Zafranal Copper Mine material used in our cemented carbide products, is supplied by

such materials, so that we can live up to our customers’ expecta- maintaining stable supplies of materials and products to recycling From Source: Based on the Japan Oil, Gas and Metals National Corporation (JOGMEC) Japan, in conjunction with customers and major suppliers. We are Metal Resources Report (March 2013) with selected additions tions and meet needs on a global scale. Limestone Raw Materials also working to expand recycling at Japan New Metals Co., Ltd., ＊ ICSG: International Copper Study Group On other fronts, we are working to recycle a wide range of Every year, our cement plants procure approximately 10 million which manufactures the raw materials for our cemented carbide In areas undergoing development meanwhile, activities inevita- resources that are inextricably linked to public demand, including tons of limestone, the main raw material in cement, from mines products whilst also recycling products into alternative raw bly have a significant impact on the environment and the aluminum cans, used home appliances, electronic devices and operated by ourselves or our affiliates. At our core Higashitani materials. livelihoods of local people. It is therefore essential to reach a suffi- vehicles, which contain more and more electrical components Mine, we are jointly developing an untapped area between our cient consensus before proceeding, taking into account factors these days. In recent years, we have also been playing a supporting such as human rights and employment issues. role behind the scenes in the Tohoku area, through activities such  Overseas Copper and Coal Mines Copper mines/development projects Coal mines Indonesia/Papua New Guinea VOICE High hopes for Mitsubishi Materials in the field of global resource recycling 9.3% North America Huckleberry Mine Copper Mountain Mine (Canada, United States) (Canada) (Canada) The concept of a “circular” recycling-oriented economy has been gaining ground in recent years, particularly in Europe. Un- 20.4% 35.714% 25% Australia like the current situation, whereby natural resources can be freely mined, manufactured, consumed and disposed of on a Adaro Coal Mine 3.0% global scale, a circular economy would involve transforming mechanisms throughout society from a broader perspective, in Copper ore Kideco Coal Mine Zafranal Project (Indonesia) New Hope Coal Mine (Peru) South America suppliers an effort to avoid risks stemming from the depletion of resources in the future. (Australia) 20% One of the goals for sustainable economic growth set out under the EU’s Europe 2020 strategy is to improve resource 67.3% 11.22% efficiency. The aim is to establish Europe as a platform for resource efficiency and set out a road map for more efficient use Batu Hijau Mine Largest copper mine in the world of resources within Europe, as part of an active commitment to establishing a circular economy involving companies as well (Indonesia) Under exploration Escondida Mine Russia, others as other organizations. Namosi Project (Chile) 283,000t (5%) 1.75% Japan meanwhile has continued to lead the world in activities aimed at reducing environmental impact by reducing, reus- (Fiji) 1.25% 28.06% ing and recycling waste, based on the concept of a recycling-oriented society. While all this has been going on, Mitsubishi Takeshi Shimotaya Boasts some of the lowest Materials has built up experience, expertise and advanced technologies through its diverse recycling operations, particularly Coal costs in the world Managing Director Indonesia through recycling at its nonferrous metal smelting and cement plants. suppliers Warkworth Coal Mine Los Pelambres Mine Sustainavision Ltd. 2,525,000t (Australia) Australia for MMC (Chile) (UK-based CSR consultant) With growing international momentum to create a circular economy, there are high hopes that Mitsubishi Materials (49%) 6% could make an even greater contribution as a world leader in the future, in terms of avoiding risks on a global scale and es- 2,378,000t 10% tablishing a genuinely sustainable society. (46%) ＊Figures indicate ownership interest in mines and development projects

29 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 30 Material Issues Resources and Recycling 1 From maintaining stable supplies of materials and products to recycling as decontaminating and processing large volumes of rubble from premises and the adjacent Kokura Mine, which is operated by As a diversified material manufacturer, we have an important duty to maintain reasonable prices, uphold fair trade and ensure the Great East Japan Earthquake using our high-temperature Sumitomo Osaka Cement Co., Ltd. Having started mining in July the stable supply of our products. burning process for cement. 2012, this will enable us to effectively tap into approximately We make every effort to secure stable supplies of resources by investing in promising overseas mines, strengthening relationships Our expert knowledge of materials is what enables us to recycle 300 million tons of untouched limestone. We are already mining with our suppliers and promoting recycling. and reuse the precious resources that nature provides. We take approximately 3.4 million tons from this new area annually, and pride in that fact and are determined to become the world’s hope to ultimately mine 5 million tons per year in the future, leading business Group committed to supporting recycling equivalent to roughly half of the output from our Higashitani mine. oriented society. At the Une Mine operated by Ryoko Lime Industry Co., Ltd. As Japan is reliant on imports from other countries for the meanwhile, we worked with one of our neighboring mining part- Securing Stable Products Supplies: Copper Products Issues surrounding resources and our role majority of its mineral resources, one of our top priorities must be ners to stabilize a long retaining wall, which has given us access to Since the closure of our Akenobe Mine in 1987, we have been to secure resources and maintain stable supplies of the materials new seams of limestone Our role as a diversified material manufacturer reliant on imports from overseas mines for copper concentrate, the and products that the Japanese people need, whilst at the same from 120 meters below As a group rooted in the coal and mining industry, dating back to main raw material used in our products. To ensure stable procure- time ensuring reasonable prices and upholding fair trade. We con- the existing level. We will Resources and Recycling the birth of the Mitsubishi Group, we have continued to play a ment, we have therefore continued to invest in overseas mines. sider this to be another of our key roles as a diversified material continue to work with supporting role in the modernization of Japan. Through various Depending on our level of investment, we also assign personnel to 1 manufacturer, in the interests of resource security as well as main- neighboring mines at changes over the years, we have continued to improve our techni- mines in other countries, and provide support to ensure that mines taining the competitiveness of the wide-ranging industries that both locations in the cal capabilities as a diversified material manufacturer, whilst are developed sustainably in the best interests of the environment constitute our customers. future, in an effort to sta- supplying the basic materials that we all need and doing our bit to and the local community. In June 2011, operations started as part bilize operations even enrich people’s lives. The growing importance of resource recycling of a project to redevelop Copper Mountain Mine in Canada, in further. Demand for mineral resources has skyrocketed in recent years, With so many different challenges becoming apparent in the which we have a 25% stake. This has taken our captive mine ratio Higashitani Mine (Fukuoka prefecture) due to industrial development in emerging countries. While resource sector, there has been a renewed focus on the to around 27%. international capital continues to extend its dominance, in the importance of resource recycling. In the EU for instance there has From a longer-term perspective, we are also working on a form of major global resource suppliers, we are also facing been much discussion regarding the concept of a “circular number of joint exploration projects in an effort to secure interests Securing Stable Products Supplies: economy.” increasing restrictions on resources as a result of more and more in promising mining areas as soon as possible. In the Namosi area Cemented Carbide Products resource-producing countries imposing export restrictions as part One of the key characteristics of our operations here at the of Fiji for instance, we are currently carefully undertaking of protectionist policies. Mitsubishi Materials Group is our “urban mine” recycling business, pre-feasibility studies. In June 2013 meanwhile, we signed up to Over 80% of worldwide demand for tungsten, the main raw  ICSG* worldwide copper demand forecast which enables us to extract (recycle) resources more efficiently and acquired a 20% interest in the Zafranal Copper Mine material used in our cemented carbide products, is supplied by

[1,000 tons] Worldwide copper mine production than developing natural underground resources, with less of an Development Project in southern Peru. Thanks to the mine’s ideal China. Although the balance of supply and demand has eased 24,000 Worldwide refined copper production impact on the environment or local communities. location, combined with its established infrastructure and a low somewhat for the time being, due in part of changes in the 22,000 Worldwide refined copper consumption ＊Actual figures for 2002-2011, forecasts for 2012-2014 As outlined in this report’s special feature, our E-scrap recycling stripping ratio, this is expected to be a successful project in terms external environment with regard to resource policy, the scarcity 20,000 operations similarly enable us to efficiently recycle high-value 18,000 of cost competitiveness. of tungsten as a rare metal remains largely unchanged. Scrap raw materials 16,000 resources such as gold and silver as part of the metal smelting pro- We are working to recycle used cemented carbide products in 14,000 cesses we use for our core operations, whilst at the same time an effort to diversify suppliers and sources of raw materials 12,000 Copper mine production effectively separating and treating harmful substances. Securing Stable Products Supplies: throughout the Mitsubishi Materials Group, and are stepping up 0 We continue to step up initiatives aimed at increasing intake of initiatives aimed at recovering used cemented carbide products in 03 04 05 06 07 08 09 10 11 12 13 14 15 [FY] Cement such materials, so that we can live up to our customers’ expecta- maintaining stable supplies of materials and products to recycling From Source: Based on the Japan Oil, Gas and Metals National Corporation (JOGMEC) Japan, in conjunction with customers and major suppliers. We are Metal Resources Report (March 2013) with selected additions tions and meet needs on a global scale. Limestone Raw Materials also working to expand recycling at Japan New Metals Co., Ltd., ＊ ICSG: International Copper Study Group On other fronts, we are working to recycle a wide range of Every year, our cement plants procure approximately 10 million which manufactures the raw materials for our cemented carbide In areas undergoing development meanwhile, activities inevita- resources that are inextricably linked to public demand, including tons of limestone, the main raw material in cement, from mines products whilst also recycling products into alternative raw bly have a significant impact on the environment and the aluminum cans, used home appliances, electronic devices and operated by ourselves or our affiliates. At our core Higashitani materials. livelihoods of local people. It is therefore essential to reach a suffi- vehicles, which contain more and more electrical components Mine, we are jointly developing an untapped area between our cient consensus before proceeding, taking into account factors these days. In recent years, we have also been playing a supporting such as human rights and employment issues. role behind the scenes in the Tohoku area, through activities such  Overseas Copper and Coal Mines Copper mines/development projects Coal mines Indonesia/Papua New Guinea VOICE High hopes for Mitsubishi Materials in the field of global resource recycling 9.3% North America Huckleberry Mine Copper Mountain Mine (Canada, United States) (Canada) (Canada) The concept of a “circular” recycling-oriented economy has been gaining ground in recent years, particularly in Europe. Un- 20.4% 35.714% 25% Australia like the current situation, whereby natural resources can be freely mined, manufactured, consumed and disposed of on a Adaro Coal Mine 3.0% global scale, a circular economy would involve transforming mechanisms throughout society from a broader perspective, in Copper ore Kideco Coal Mine Zafranal Project (Indonesia) New Hope Coal Mine (Peru) South America suppliers an effort to avoid risks stemming from the depletion of resources in the future. (Australia) 20% One of the goals for sustainable economic growth set out under the EU’s Europe 2020 strategy is to improve resource 67.3% 11.22% efficiency. The aim is to establish Europe as a platform for resource efficiency and set out a road map for more efficient use Batu Hijau Mine Largest copper mine in the world of resources within Europe, as part of an active commitment to establishing a circular economy involving companies as well (Indonesia) Under exploration Escondida Mine Russia, others as other organizations. Namosi Project (Chile) 283,000t (5%) 1.75% Japan meanwhile has continued to lead the world in activities aimed at reducing environmental impact by reducing, reus- (Fiji) 1.25% 28.06% ing and recycling waste, based on the concept of a recycling-oriented society. While all this has been going on, Mitsubishi Takeshi Shimotaya Boasts some of the lowest Materials has built up experience, expertise and advanced technologies through its diverse recycling operations, particularly Coal costs in the world Managing Director Indonesia through recycling at its nonferrous metal smelting and cement plants. suppliers Warkworth Coal Mine Los Pelambres Mine Sustainavision Ltd. 2,525,000t (Australia) Australia for MMC (Chile) (UK-based CSR consultant) With growing international momentum to create a circular economy, there are high hopes that Mitsubishi Materials (49%) 6% could make an even greater contribution as a world leader in the future, in terms of avoiding risks on a global scale and es- 2,378,000t 10% tablishing a genuinely sustainable society. (46%) ＊Figures indicate ownership interest in mines and development projects

29 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 30 Material Issues 1 Resources and Recycling Expanding our recycling-oriented business model Metals Recycling Rare Metals Advanced Materials & Tools Recycling Tungsten from Urban Mines Making the most of the Mitsubishi Materials Group’s extensive technologies and expertise, underpinned by mining and concen- PGM* are rare metals that are found in copper concentrate. Waste containing rare metals is often found in the form of tration technologies, we recycle materials across a wide range of fields, including home appliances, aluminum cans, tungsten Group company Materials Eco-Refining Co., Ltd. refines PGM “urban mines,” which contain such a high percentage of rare and palladium, so that we can do our bit to recycle resources through our business activities. intermediate materials obtained from our Naoshima Smelter & metals that it is possible to extract them more efficiently than Refinery, to create products such as metals and chemical obtaining metals from natural resources. A prime example is compounds. tungsten, the main raw material used in cemented carbide Platinum and palladium in particular are key materials in products. Making the most of the Mitsubishi Materials Group’s the automotive, electric and electronic sectors. With that in comprehensive capabilities as a manufacturer, from raw mind, we applied to register our brand with the London Plati- materials through to finished products, we are currently num and Palladium Market (LPPM), as a means of offering Recycling-Oriented Business Model focusing on recycling used cemented carbide products in an market assurance, and successfully obtained certification in  Recycling-Oriented Business Model (by segment) effort to secure stable supplies of raw materials. Overview of our Recycling-Oriented Business September 2012. We are determined to keep on improving the quality of our products, and make every effort to ensure stable Model Advanced Electronic The Mitsubishi Materials Group is a complex corporate Cement Metals Materials Materials & Aluminum supplies of rare metals. Resources and Recycling & Tools Components Market Electronic Materials & Components entity encompassing a wide range of technologies and *PGM: Platinum Group Metals Recycling Fluorine 1 Mineral Mines Mines Mines expertise, from resources upstream to materials midstream (limestone/ (copper) (tungsten) ーー Resources Resources coal) to processed products downstream.  The Rare Metal Recycling Process We manufacture a range of fluorine compounds at Group We have continued to make the most of those capabili- company Mitsubishi Materials Electronic Chemicals Co., Ltd., Hydrofluoric To Precious metal refining process Electronic material manufacturers ties across different sectors, in an effort to establish a Materials Cement Copper Tungsten Aluminum including materials for use in semiconductor manufacturing, acid market recycling-oriented business model based on recovering flame retardants, antistatic agents and other functional resources from a wide range of waste products. PGM concentrated Scrap containing PGM materials, as well as hydrofluoric Processed We strive to create cyclical value chains in each of our Processed Ready- Functional intermediate materials Scrap jewelry acid. We also recover calcium materials aluminum products mixed Processed Cemented products businesses, so that resources and materials are processed concrete Electronic To fluoride sludge produced by compa- copper carbide market products tools Aluminum into products and then recycled back into materials. As Secondary devices beverage Materials Eco-Refining Co., Ltd. Shipped nies using fluorine compounds. We

products electronics vehicles, Social infrastructure, Silicon cans Onahama Plant have been recycling sludge back into Fluorite raw Recovered calcium well as enabling sustainable growth, this also helps to materials fluoride raw materials promote recycling-oriented social systems. Refined/recycled into products fluorine resources that can be used Industrial E-scrap Used Collected as an alternative raw material for waste cemented Calcium aluminum Recycling fluoride Recycling home appliances carbide beverage fluorite ever since fiscal 2007, Recycling vehicles tools cans enabling us to substitute a high percentage of resources as part of Rotary kiln our operations. We remain fully Expanding our recycling-oriented business model Recycling in Individual Businesses committed to recycling fluorine resources in the future, through continued technical innovation. Cement Recycling Industrial Waste and Metals Recycling Scrap Shipping hydrofluoric acid Byproducts Environmental Recycling Recycling Home Appliances We use smelting technology for the purpose of recycling at our Using an ultra-high temperature burning process, our cement Home appliances are made from a combination of countless smelters and refineries. We take in a wide variety of scrap, Aluminum plants detoxify and make effective use of industrial waste and including shredder dust and used batteries from sources such different materials, including glass, plastic and rubber as well Recycling Aluminum Beverage Cans as metals such as iron, aluminum, copper. At our home other difficult-to-treat materials. As well as using substances as used home appliances or scrap vehicles, and E-Scrap from We have been operating a total CAN TO CAN recycling system appliance recycling plants, we dismantle appliances by hand, such as construction sludge, coal ash, copper slag byproducts sources such as used substrates and connectors. We then within the Mitsubishi Materials Group (Universal Can Corp. and before crushing and sorting materials. Having developed an from copper smelters, and gypsum as raw materials to make recycle scrap, by using it for raw materials or thermal energy, Mitsubishi Aluminum Co., Ltd.), based on a cycle of can manufac- advanced sorting process for components and materials, we cement, we use waste materials such as plastic, tires and and recover valuable metals. turing, collecting, melting, casting and rolling, for over 30 years are working to create added value from recovered materials wood as a source of thermal energy. We also take in clinker dust, as a byproduct from our now. The largest operation of its kind in Japan, our system is and improve recycling efficiency. We recover copper and other As chlorine contained in waste products such as these can cement plants, and use components such as calcium as auxil- uniquely integrated within the Group and enables us to process precious metals from recovered copper-based materials and affect plant operations and the quality of cement, we have iary raw materials for smelting. After use, clinker dust turns around 40,000 tons of used beverage cans (UBC) every year, printed circuit boards via our copper smelting process, so as to installed and are upgrading high performance chlorine bypass into copper slag, which is then recycled back into raw materi- thereby helping to conserve aluminum resources. We also do our harness Group synergy to the fullest possible extent. In fiscal facilities at each of our plants. This is all part of our commit- als at our cement plants. bit to prevent global warming by manufacturing slabs of recycled 2015, we recycled 2.285 million home appliances at six plants, ment to further stabilizing intake of waste and byproducts. aluminum from UBC. As this only requires about 3% as much operated by five companies in which we have a stake. In terms energy as manufacturing aluminum from scratch, it enables us to of the amount of waste sent to landfill, that is equivalent to a Consumption of wastes and byproducts and volume of wastes substantially reduce energy consumption, and it also enables us ■ reduction of approximately 100,000 tons. and byproducts used per ton of cement produced to contribute to preventing global warming. Consumption Volume of wastes ■ Volume of Scrap Processed Consumption and byproducts used ■ Domestic recycling of aluminum used beverage cans and [1,000 tons/year] Volume of wastes and byproducts per ton of cement [kg/t-Ce] [1,000 tons/year] the percentage of those cans collected by the used per ton of cement ■ Number of home appliances processed 5,000 500 500 Mitsubishi Materials Group (FY2007 = 100%) [1,000 units/year] 420 420 421 408 407 395 5,000 4,797 Domestic recycling of Percentage of aluminum used beverage cans 4,000 400 400 378 362 371 aluminum used beverage cans collected by the Mitsubishi Materials Group 3,774 3,936 4,061 4,088 327 4,000 [1,000 tons] [%] 3,000 3,824 300 300 3,276 300 273 150 3,621 3,000 2,337 2,315 2,322 2,285 2,000 200 200 2,084 2,174 250 125 2,000 129 200 100 1,000 100 100 1,000 150 75

0 0 0 0 100 50 11 12 13 14 15 [FY] 11 12 13 14 15 [FY] 07 08 09 10 11 12 13 14 15 [FY] 07 08 09 10 11 12 13 14 15 [FY]

31 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 32 Material Issues 1 Resources and Recycling Expanding our recycling-oriented business model Metals Recycling Rare Metals Advanced Materials & Tools Recycling Tungsten from Urban Mines Making the most of the Mitsubishi Materials Group’s extensive technologies and expertise, underpinned by mining and concen- PGM* are rare metals that are found in copper concentrate. Waste containing rare metals is often found in the form of tration technologies, we recycle materials across a wide range of fields, including home appliances, aluminum cans, tungsten Group company Materials Eco-Refining Co., Ltd. refines PGM “urban mines,” which contain such a high percentage of rare and palladium, so that we can do our bit to recycle resources through our business activities. intermediate materials obtained from our Naoshima Smelter & metals that it is possible to extract them more efficiently than Refinery, to create products such as metals and chemical obtaining metals from natural resources. A prime example is compounds. tungsten, the main raw material used in cemented carbide Platinum and palladium in particular are key materials in products. Making the most of the Mitsubishi Materials Group’s the automotive, electric and electronic sectors. With that in comprehensive capabilities as a manufacturer, from raw mind, we applied to register our brand with the London Plati- materials through to finished products, we are currently num and Palladium Market (LPPM), as a means of offering Recycling-Oriented Business Model focusing on recycling used cemented carbide products in an market assurance, and successfully obtained certification in  Recycling-Oriented Business Model (by segment) effort to secure stable supplies of raw materials. Overview of our Recycling-Oriented Business September 2012. We are determined to keep on improving the quality of our products, and make every effort to ensure stable Model Advanced Electronic The Mitsubishi Materials Group is a complex corporate Cement Metals Materials Materials & Aluminum supplies of rare metals. Resources and Recycling & Tools Components Market Electronic Materials & Components entity encompassing a wide range of technologies and *PGM: Platinum Group Metals Recycling Fluorine 1 Mineral Mines Mines Mines expertise, from resources upstream to materials midstream (limestone/ (copper) (tungsten) ーー Resources Resources coal) to processed products downstream.  The Rare Metal Recycling Process We manufacture a range of fluorine compounds at Group We have continued to make the most of those capabili- company Mitsubishi Materials Electronic Chemicals Co., Ltd., Hydrofluoric To Precious metal refining process Electronic material manufacturers ties across different sectors, in an effort to establish a Materials Cement Copper Tungsten Aluminum including materials for use in semiconductor manufacturing, acid market recycling-oriented business model based on recovering flame retardants, antistatic agents and other functional resources from a wide range of waste products. PGM concentrated Scrap containing PGM materials, as well as hydrofluoric Processed We strive to create cyclical value chains in each of our Processed Ready- Functional intermediate materials Scrap jewelry acid. We also recover calcium materials aluminum products mixed Processed Cemented products businesses, so that resources and materials are processed concrete Electronic To fluoride sludge produced by compa- copper carbide market products tools Aluminum into products and then recycled back into materials. As Secondary devices beverage Materials Eco-Refining Co., Ltd. Shipped nies using fluorine compounds. We products electronics vehicles, Social infrastructure, Silicon cans Onahama Plant have been recycling sludge back into Fluorite raw Recovered calcium well as enabling sustainable growth, this also helps to materials fluoride raw materials promote recycling-oriented social systems. Refined/recycled into products fluorine resources that can be used Industrial E-scrap Used Collected as an alternative raw material for waste cemented Calcium aluminum Recycling fluoride Recycling home appliances carbide beverage fluorite ever since fiscal 2007, Recycling vehicles tools cans enabling us to substitute a high percentage of resources as part of Rotary kiln our operations. We remain fully Expanding our recycling-oriented business model Recycling in Individual Businesses committed to recycling fluorine resources in the future, through continued technical innovation. Cement Recycling Industrial Waste and Metals Recycling Scrap Shipping hydrofluoric acid Byproducts Environmental Recycling Recycling Home Appliances We use smelting technology for the purpose of recycling at our Using an ultra-high temperature burning process, our cement Home appliances are made from a combination of countless smelters and refineries. We take in a wide variety of scrap, Aluminum plants detoxify and make effective use of industrial waste and including shredder dust and used batteries from sources such different materials, including glass, plastic and rubber as well Recycling Aluminum Beverage Cans as metals such as iron, aluminum, copper. At our home other difficult-to-treat materials. As well as using substances as used home appliances or scrap vehicles, and E-Scrap from We have been operating a total CAN TO CAN recycling system appliance recycling plants, we dismantle appliances by hand, such as construction sludge, coal ash, copper slag byproducts sources such as used substrates and connectors. We then within the Mitsubishi Materials Group (Universal Can Corp. and before crushing and sorting materials. Having developed an from copper smelters, and gypsum as raw materials to make recycle scrap, by using it for raw materials or thermal energy, Mitsubishi Aluminum Co., Ltd.), based on a cycle of can manufac- advanced sorting process for components and materials, we cement, we use waste materials such as plastic, tires and and recover valuable metals. turing, collecting, melting, casting and rolling, for over 30 years are working to create added value from recovered materials wood as a source of thermal energy. We also take in clinker dust, as a byproduct from our now. The largest operation of its kind in Japan, our system is and improve recycling efficiency. We recover copper and other As chlorine contained in waste products such as these can cement plants, and use components such as calcium as auxil- uniquely integrated within the Group and enables us to process precious metals from recovered copper-based materials and affect plant operations and the quality of cement, we have iary raw materials for smelting. After use, clinker dust turns around 40,000 tons of used beverage cans (UBC) every year, printed circuit boards via our copper smelting process, so as to installed and are upgrading high performance chlorine bypass into copper slag, which is then recycled back into raw materi- thereby helping to conserve aluminum resources. We also do our harness Group synergy to the fullest possible extent. In fiscal facilities at each of our plants. This is all part of our commit- als at our cement plants. bit to prevent global warming by manufacturing slabs of recycled 2015, we recycled 2.285 million home appliances at six plants, ment to further stabilizing intake of waste and byproducts. aluminum from UBC. As this only requires about 3% as much operated by five companies in which we have a stake. In terms energy as manufacturing aluminum from scratch, it enables us to of the amount of waste sent to landfill, that is equivalent to a Consumption of wastes and byproducts and volume of wastes substantially reduce energy consumption, and it also enables us ■ reduction of approximately 100,000 tons. and byproducts used per ton of cement produced to contribute to preventing global warming. Consumption Volume of wastes ■ Volume of Scrap Processed Consumption and byproducts used ■ Domestic recycling of aluminum used beverage cans and [1,000 tons/year] Volume of wastes and byproducts per ton of cement [kg/t-Ce] [1,000 tons/year] the percentage of those cans collected by the used per ton of cement ■ Number of home appliances processed 5,000 500 500 Mitsubishi Materials Group (FY2007 = 100%) [1,000 units/year] 420 420 421 408 407 395 5,000 4,797 Domestic recycling of Percentage of aluminum used beverage cans 4,000 400 400 378 362 371 aluminum used beverage cans collected by the Mitsubishi Materials Group 3,774 3,936 4,061 4,088 327 4,000 [1,000 tons] [%] 3,000 3,824 300 300 3,276 300 273 150 3,621 3,000 2,337 2,315 2,322 2,285 2,000 200 200 2,084 2,174 250 125 2,000 129 200 100 1,000 100 100 1,000 150 75

0 0 0 0 100 50 11 12 13 14 15 [FY] 11 12 13 14 15 [FY] 07 08 09 10 11 12 13 14 15 [FY] 07 08 09 10 11 12 13 14 15 [FY]

31 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 32 Material Issues 1 Resources and Recycling Home appliance recycling plants Smelting and Cement Recycling System We dismantle used home appliances by hand and supply certain recovered materials To help create a recycling-oriented society, we effectively reuse byproducts from our nonferrous smelting facilities as raw materi- as raw materials als for our cement manufacturing facilities, and vice versa. We are also using this system, which enables us to recycle E-scrap, used home appliances and other waste products into resources, to recycle difﬁcult-to-treat waste. Processing refrigerators Our initiatives P.11

Recycling Resources with No Need for Landfill Sites People in their People in their Automakers Smelting and Cement Recycling System Power plants Operating our Smelting and Cement Recycling System daily lives daily lives As a result of an increasing volume and variety of waste products, Japan is facing issues such as pressure on landfill sites and a growing percentage of difficult-to- Scrap Home r slag, gyp Construction Resources and Recycling appliance pe su Steelmakers dealers p m companies treat materials. Recovering and recycling waste without producing secondary waste manufacturers Co 1 has therefore become a top priority As one of very few companies in the world that has both nonferrous smelting and cement plants, we run a combined smelting and cement recycling system as part of our environmental recycling operations here at the Mitsubishi Materials Metals Cement Business Group, in an effort to help establish a recycling-oriented society. Our smelting Waste/byproducts Waste/byproducts plants use byproducts generated by our cement plants as raw materials, and vice Smelter & Refinery Cement plants Waste versa, enabling us to recycle waste without any need for landfill sites. One of the Sewage soil from byproducts we generate at our smelting plants is copper slag, which is increasingly Fly ash Shredder and construction dust drainage Contaminated being used as an aggregate for concrete, as part of our own contribution to recovery 371 sludge soil and reconstruction work following the Great East Japan Earthquake. thousand 4,088 thousand tons Making the most of this system, which enables us to process E-scrap, used home tons taken in taken in

appliances, scrap vehicles, batteries and various other types of waste, we have also Used Slag and Smelting and Cement Recycling System E-Scrap Waste started to recycle difﬁcult-to-treat waste such as rubble from disaster areas and batteries tires coal ash waste plasterboard. We use unique technologies at our cement plants in particular Waste is reused as raw materials of Resources are reused without producing to recycle waste plasterboard into raw materials for cement, and are working to nonferrous smelting thanks to our secondary waste by burning them at reinforce our processing capabilities even further. smelting technology ultra-high temperatures

Cl inker dust

Taking in, decontaminating and Smelter & Reﬁnery Recycling resources from urban mines Cement plants stabilizing difﬁcult-to-treat waste from other industries

tal impact . We put copper then sintered at high temperatures to grinding process MFC* raw materials raw concentrate through a produce a hydraulic mineral during series of three connected the burning process. Taken in furnaces connected by Once the raw mixture has reached Kiln Pretreated pipes to produce blister Taken in the maximum temperature (1,450ºC)

copper (98.5% purity). The and a series of chemical reactions are Waste/byproducts required facilities are Pretreated completed, it is quickly cooled into an Burning Copper smelting Used as processes compact and also help to or thermal energy The Mitsubishi Process intermediate product called clinker. Used as raw materials Used as raw Waste/byproducts save energy and cut costs. *MFC: Mitsubishi ﬂuidized calciner, developed thermal energy Clinker cooler exclusively by Mitsubishi Materials for the purpose of facilitating decarbonation reactions in limestone

33 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 34 Material Issues 1 Resources and Recycling Home appliance recycling plants Smelting and Cement Recycling System We dismantle used home appliances by hand and supply certain recovered materials To help create a recycling-oriented society, we effectively reuse byproducts from our nonferrous smelting facilities as raw materi- as raw materials als for our cement manufacturing facilities, and vice versa. We are also using this system, which enables us to recycle E-scrap, used home appliances and other waste products into resources, to recycle difﬁcult-to-treat waste. Processing refrigerators Our initiatives P.11

Cl inker dust

Taking in, decontaminating and Smelter & Reﬁnery Recycling resources from urban mines Cement plants stabilizing difﬁcult-to-treat waste from other industries

 The Mitsubishi Process  Ultra-High Temperature Burning Process Our unique Mitsubishi Continuous Copper Smelting and Con- Raw materials (including wastes and Pre heaters verting Process (Mitsubishi Process) is a highly efﬁcient copper byproducts) are prepared during the manufacturing process that has exceptionally low environmen- raw material grinding process and Used as Raw material tal impact . We put copper then sintered at high temperatures to grinding process MFC* raw materials raw concentrate through a produce a hydraulic mineral during series of three connected the burning process. Taken in furnaces connected by Once the raw mixture has reached Kiln Pretreated pipes to produce blister Taken in the maximum temperature (1,450ºC)

33 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 34 Material Issues

Material Issues 2 Environmental Preservation and Technology Environmental Management

We are committed to preserving the environment in accordance with the Mitsubishi Materials Group Code of Conduct, which speciﬁcally refers to the effective use and recycling of resources. We are constantly working to tackle environmental issues on a global scale while addressing priorities such as preventing pollution.

Compliance with Environmental Legislation Environmental Management System Environment Policy ■ Internal Environmental Auditor Training Eco-Management Corporation, which manages closed mines on Having introduced environmental management systems in behalf of the Mitsubishi Materials Group, was issued with a stern CSR Committee Based on our Corporate Philosophy “For People, Society and the accordance with ISO 14001 at many of our manufacturing facilities warning regarding a violation of the Mining Safety Act on April 1, Earth,” we recognize the importance of environmental preserva- Environmental Management Panel throughout the Mitsubishi Materials Group, we organize seminars 2015, and instructed to return subsidies it had received for mine tion on a global scale and strive to contribute to the creation of to train internal environmental auditors. In addition to learning wastewater treatment. The violation concerned the discharge of Secretariat: Environment about ISO 14001 requirements and environmental legislation, a sustainable society through our business activities, in line with Management Department wastewater that was incompatible with wastewater standards into the 10 Articles of our Code of Conduct. As a comprehensive training involves studying initiatives based on simulated examples, the public water area and the under-reporting of water volumes at materials manufacturer, with operations ranging from cement, Working Groups with the aim of identifying environmental concerns, assessing peak times during the period from April 2005 to July 2013, due to In-house companies, business units (departments) copper and metalworking through to electronic materials and applicable legislation and reducing environmental impact, as well conditions such as melting snow or torrential rain. P.44 and related corporate departments components, we supply many of the basic materials and prod- as checking for non-compliance. Technology and Environmental Preservation ucts that are essential to our industrialized society. Indeed, our Overseas Environmental Education 2 materials and products are widely used in many aspects of daily Plants, facilities, etc. Group companies Having been providing environmental education for Group compa- Dealing with Environmental Risks life. (Domestic premises, research facilities, etc.) Whereas operations within the materials industry inevitably nies engaged in manufacturing across Asia since ﬁscal 2012, as Unless we take appropriate measures to prevent harmful sub- have a high environmental impact at the manufacturing stages, part of our CSR training activities, we visited all such facilities in stances from polluting the air, water or soil, and to ensure they also present opportunities to effectively harness and ﬁscal 2015. Given how important it is to provide environmental adequate waste treatment, there is a risk that such substances recycle resources through initiatives at the waste processing and education on a regular and ongoing basis, we intend to work on could have a harmful impact on the environment, as well as having recycling stages. Environmental Education improving teaching materials in the future so that overseas facili- a serious effect on our business activities as a group.

We take the environment into consideration in everything that ties can organize training independently for their own employees. Environmental Management We regularly organize groupwide educational activities with the We regard environmental risks as a top priority within the we do and are committed to environmental management, capital- aim of providing information for preventing pollution and context of our groupwide risk management activities, and are izing on the nature of our operations to strike a balance between ■ Environmental Education in FY2015 adequate waste management, and training for ISO 14001 internal committed to conducting environmental impact assessments at business and the environment. With that basic philosophy in Participants environmental auditors. We provide environmental managers and each of our facilities in an effort to minimize risks. mind, we are determined to do our bit to help create a recycling- Managers 100 As well as preventing inappropriate treatment of waste oriented society that has a low impact on the environment, other managerial staff with education covering subjects such as Environmental management training Supervisors 95 products, particularly those that could have a serious impact, we through strict legal compliance and operations such as supplying environmental risks, examples of environmental accidents and Managers 31 also take steps to ensure that we are not involved with any form and recycling essential everyday materials and products. WEB other managerial requirements, and provide supervisors with Waste management training specific education on relevant legislation. Supervisors 228 of inadequate waste treatment. Training for internal environmental auditors 124 Environmental Management Training Overseas environmental education Thailand (3 companies) 51 Our main focus is on preventing pollution. In fiscal 2015, we Environmental Accounting Framework organized seminars designed to give supervisors a better understanding of the contents of legislation relating to the preven- One of the ways in which we evaluate our environmental initiatives Given that the Mitsubishi Materials Group’s wide-ranging business tion of air and water pollution, as well as seminars aimed at Compliance with Environmental is to compile figures for investment and expenditure on environ- activities have an impact on the environment in various different learning from example violations of environmental legislation, Legislation mental preservation, in accordance with the 2005 version of ways, we have introduced environmental management systems, preventing accidents from happening, and taking appropriate Environmental Accounting Guidelines published by the Ministry of such as ISO 14001 at manufacturing facilities, and carry out In addition to performing regular self-checks based on current measures in the event of an accident. the Environment. environmental preservation activities based on specific factors legislation at each of our facilities, our Internal Audit Department also audits areas such as compliance with environmental legisla- such as the nature of our operations and the local area. When Waste Management Training ■ Spending on Environmental Preservation in FY2015 [Million yen] tion, chemical-related initiatives, and standards of equipment dealing with groupwide issues, we discuss options via the Environ- We provide training chiefly for selected managers and supervisors Investment Expense Category mental Management Panel, one of the dedicated subcommittees who are responsible for dealing with waste at facilities, as part of management. We immediately take action to rectify any issues Amount Amount that form part of our CSR Committee, and then roll out measures our groupwide waste management system. We provide managers identified during audits, and roll out initiatives to all related Business area costs 1,332 4,572 facilities, in an effort to improve management standards through- to individual facilities as necessary. with text-based handouts aimed at improving their understanding Pollution prevention costs 752 1,823 As part of our cement and copper smelting operations, we take of the risks associated with waste. For supervisors meanwhile, we out the Group. When installing, upgrading or decommissioning Global environmental conservation costs 303 616 in waste produced by various industries and process it into raw organize seminars designed to provide a better understanding of the equipment, we determine whether or not the facility is required to materials or energy sources. Given that issues associated with specific contents of regulations under the Waste Disposal Act, which notify the authorities, and also carry out checks via the relevant Resource recycling costs 277 2,133 waste are likely to have a serious impact on the continuation of our is applicable to all managing department. Upstream/downstream costs 0 0 recycling business, we have positioned waste management as one parties disposing of We share information with employees on revised legislation Administration costs 71 432 of our top priorities, and have installed organizational and educa- waste products. We that could potentially be applicable to the Mitsubishi Materials R&D costs 159 263 tional frameworks to ensure that we manage all waste in an also provide supervi- Group via our website, as well as providing supervisors at indi- Social activity costs 0 8 vidual facilities with information directly via email. In the event of appropriate manner. sors with waste- Environmental remediation costs 0 111 As we have also made it a key priority to further enhance levels related information major revisions or revisions that require steps such as upgrading Total 1,562 5,386 of environmental management at overseas manufacturing facili- on regular basis to equipment, we organize explanatory meetings so that we are ＊Calculations are based on the 2005 version of the Environmental Accounting Guidelines published by ties, we have provided information on environmental regulations help improve their adequately prepared to take action at all of our facilities. the Ministry of the Environment. ＊Figures refer to Mitsubishi Materials on a non-consolidated basis. and provided education on the environment. skills. Training for waste supervisors

35 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 36 Material Issues

Material Issues 2 Environmental Preservation and Technology Environmental Management

35 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 36 Material Issues 2 Environmental Preservation and Technology O U TPUT Overall Environmental Impact Greenhouse Gas Emissions ★ Water discharged Here at the Mitsubishi Materials Group, we maintain an underlying commitment to conserving resources, saving energy, reducing waste and recycling. We continually monitor and strive to reduce all forms of environmental impact resulting from our business 8,196 thousand t (CO2 equivalent) 416 million m3 activities. (Further details outlined on P.40) (Salt water: 409 million m3) (Fresh water: 7 million m3) Volume of Industrial Waste thousand t Emissions into the Air (7.6 thousand t of and Bodies of Water 10.8 which was recycled) INPUT Airborne emissions SOx:752 t NOx:12,381 t

Chemicals Released or Transferred Water emissions BOD:9 t COD:273 t Nitrogen:109 t

★ Total Energy Input Raw Material Input Emitted: 52t Transferred: 423t

41.8 peta joules 17.8 million t (Equivalent to 108 giga liters of crude oil) (Volume of incoming recycled resources: 3.2 million t) [Tons/year] SOx NOx Dust Emissions into the Air and Bodies of Water 18,000 16,000 Water Use 14,000 12,381 We monitor emissions of substances that contribute to air pollution. These 12,000 Environmental Preservation and Technology and Environmental Preservation 10,000 include sulfur oxides (SOx), which are produced as a result of burning 8,000 million m3 420 6,000 3,973 2 3 fossil fuels or oxidation reactions with substances contained in raw 4,000 (Salt water: 407 million m ) 1,697 979 (Fresh water: 13 million m3) 2,000 752 192 materials, and nitrogen oxides (NOx), which are produced by coal-fired 0 11 12 13 14 15 15 [FY] power plants or during the process of calcinating raw materials, as well Mitsubishi Group Materials 63 companies as dust. We also monitor wastewater for levels of biochemical oxygen [Tons/year] BOD COD Nitrogen ★ ［PJ］ Direct input Indirect input 1,000 Total Energy Input 60 demand (BOD), chemical oxygen demand (COD) and substances such as 800 50 nitrogen and phosphorous. In fiscal 2015, SOx emissions for Mitsubishi 679 600 Total energy input (Mitsubishi Materials) in fiscal 2015 was around 40 9.3 Materials increased by approximately 25% compared to the previous year,

400 Overall Environmental Impact the same level as fiscal 2014 (0.1peta joules, a slight increase of 30 273 with COD levels in wastewater down by approximately 7%. The increase 143 20 200 109 2,500 kiloliters based on crude oil equivalent). Although energy 56 32.5 9 11.1 in SOx emissions was due to a change in the quality of coal fuel. The 0 10 [FY] consumption per unit deteriorated by 1.2% compared to fiscal 2014, 8.2 11 12 13 14 15 15 0 decrease in COD meanwhile was due to reduced COD levels in seawater. Mitsubishi Group it actually improved by 1.1% compared to fiscal 2010, the base year 10 11 12 13 14 15 15 [FY] Materials 63 companies Mitsubishi Group for our energy management and reporting system at Mitsubishi Materials 57 companies* ＊ 1 PJ (peta joules) = 1,000 TJ (tera joules) 3 Materials. ＊ A breakdown of annual direct and indirect energy input is [Million m /year] Lakes and rivers Sewers Other outlets included in the Fact Sheet. Water discharged 45 40 0.0 *Figures are based on different boundaries for energy input. 1.4 35 The volume of water discharged by Mitsubishi Materials (excluding 36.9 water drained into the sea) increased by approximately 7% during fiscal 10 Waste Byproducts Natural resources 0.1 2015 compared to the previous year, due to increased usage of fresh 0.1 Processed items and components 5 Raw Material Input 3 Percentage of recycled raw materials used water in manufacturing processes. Of the 409 million m of water 6.6 [Million tons/year] ［%］ drained into the sea by Mitsubishi Materials, the vast majority was 0 We continue to recycle waste and byproducts into raw materials in 35 25 11 12 13 14 15 15 [FY] ＊ Excluding water drained into the sea Mitsubishi Group 30 seawater that had been used as coolant. an effort to help create a recycling-oriented society. In fiscal 2015, 18.2 20 Materials 63 companies 25 we used a total of 3.2 million tons of waste and byproducts (down 20 15 0.1 [Tons/year] Released Transferred approximately 12% on the previous year) at Mitsubishi Materials, 15 10 14.5 1.0 Chemicals Released or Transferred 900 10 6.3 taking our raw material input to roughly 18%. 10.6 5 5 0.9 0.4 582 0.3 The volume of chemicals released by Mitsubishi Materials increased by 600 0 2.4 0 11 12 13 14 15 15 [FY] approximately 26% year-on-year during fiscal 2015. The volume 423 ＊ Excludes seawater used in salt Mitsubishi Group 300 manufacturing Materials 63 companies transferred meanwhile fell by approximately 26%. This increase in 198 52 chemicals released was due to the composition of seawater. 0 11 12 13 14 15 15 [FY] Municipal water Industrial water Mitsubishi Group [Million m3/year] Groundwater Other fresh water Materials 63 companies Water use 60

50 The vast majority of the water we consume is seawater used as coolant [Thousand tons/year] Sent to be recycled Sent to landfill 40 3.2 Volume of Industrial Waste 100 for thermal power generation facilities at our cement plants and at our 8.6 90 12.7 30 80 copper smelting facilities. We used a total of 420 million m3 of water The volume of waste sent to landfill by Mitsubishi Materials fell by 86.6 20 20 3 at Mitsubishi Materials during fiscal 2015. Only 13 million m (3%) of 5.2 27.6 approximately 3% in fiscal 2015 compared to the previous year, due in 10 2.0 that total however was fresh water. 4.2 part to the temporary suspension of plant operations. The percentage 10 3.2 0 1.4 1.3 11 12 13 14 15 15 [FY] of industrial waste that we sent to be recycled totaled approximately 7.6 0 ＊ Excluding fresh water used in Mitsubishi Group 70%. 11 12 13 14 15 15 [FY] hydroelectric power generation Materials 63 companies Mitsubishi Group ＊ Excluding seawater Materials 63 companies

37 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 38 Material Issues 2 Environmental Preservation and Technology O U TPUT Overall Environmental Impact Greenhouse Gas Emissions ★ Water discharged Here at the Mitsubishi Materials Group, we maintain an underlying commitment to conserving resources, saving energy, reducing waste and recycling. We continually monitor and strive to reduce all forms of environmental impact resulting from our business 8,196 thousand t (CO2 equivalent) 416 million m3 activities. (Further details outlined on P.40) (Salt water: 409 million m3) (Fresh water: 7 million m3) Volume of Industrial Waste thousand t Emissions into the Air (7.6 thousand t of and Bodies of Water 10.8 which was recycled) INPUT Airborne emissions SOx:752 t NOx:12,381 t

Chemicals Released or Transferred Water emissions BOD:9 t COD:273 t Nitrogen:109 t

★ Total Energy Input Raw Material Input Emitted: 52t Transferred: 423t

37 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 38 Material Issues 2 Environmental Preservation and Technology Preventing Global Warming

Here at the Mitsubishi Materials Group, we consider it our duty to reduce greenhouse gas emissions, and to develop and supply products, materials and services that will help to create a low-carbon society. We are also committed to generating and increas- Reduction Initiatives During Fiscal 2015 management of air conditioning and refrigeration-related systems. ing usage of renewable energy. We are also looking to improve energy efﬁciency through Constantly Exploring the Possibilities of Saving Energy initiatives such as reviewing operating methods for distillation We organize meetings of the Energy Saving Committee every year, equipment and boilers, and improving management of steam- in order to promote energy saving initiatives on a groupwide scale. related equipment, in order to reduce boiler fuel consumption. During meetings, energy managers and other participants report ★  CO2 Derived from Energy Sources (nonconsolidated) The Global Environment and Energy Committee (chaired by the on energy-related trends in society, the results of activities and [Thousand tons Development and other activities Electronic Materials & Components plans at individual facilities, and examples of effective initiatives, CO2 equivalent] Global Warming Prevention Policy and President and consisting of members of the Corporate Strategy Advanced Materials & Tools Metals Cement as well as actively exchanging opinions and information. 4,500 Committee) plays leading role with regard to strategic initiatives in 4,000 3,735 Framework 3,373 3,356 3,376 3,472 3,507 response to global warming-related risks and opportunities such The Mitsubishi Materials Group is a heavy consumer of energy, 3,500 3,187 3,133 3,000 We set ourselves clear targets in each sector and carry out a range as these from a more comprehensive, medium- to long-term with wide-ranging manufacturing operations including cement, 2,500 of ongoing initiatives aimed at minimizing levels of greenhouse metals, advanced materials and tools, electronic materials and 2,000 perspective. 1,500 gases emitted as a result of our business activities, including components, rolled aluminum products, aluminum cans, and 1,000 saving energy and reducing CO2 emissions. We also consider it our copper and brass products. That is why we are constantly explor- 500 0 duty to develop and supply products, materials and services that ing the possibilities of saving energy, so that we can secure an 09 10 11 12 13 09～14 14 15 [FY] Comprehensive Initiatives Aimed at (Average)

even greater competitive advantage. ＊ Technology and Environmental Preservation will be essential to the creation of a low-carbon society. Preventing Global Warming and CO2 derived from non-energy sources comes mainly from limestone, which is used as a raw material. As it is difficult to substitute or reduce volumes of limestone, however, our emissions As well as CO2 from energy sources, our cement operations also Establishing a Recycling-Oriented Society Major Initiatives in Each Sector target covers CO2 emissions derived from energy sources, which can be reduced by energy 2 produce CO2 emissions as a result of breaking down limestone, the saving initiatives. We believe that we have a duty to save energy wherever possible main raw material in cement. With that in mind, any tightening of We set out a vision aimed at becoming “the world’s leading business at our manufacturing facilities and plants. That is why we are so  Total greenhouse gas emissions (nonconsolidated + main consolidated subsidiaries) regulations on greenhouse gas emissions (including emissions group committed to supporting recycling-oriented society,” as part [Thousand tons committed to energy saving activities. CO2 equivalent] Overseas group companies Domestic group companies Nonconsolidated trading schemes) in the future could pose a considerable financial 14,000 of our long-term management policy unveiled at the start of fiscal Specific activities include switching fuels, making effective use risk. At the same time however, this could potentially lead to more 2015. With this vision in mind, and taking into account our broader of untapped energy, upgrading equipment, installing high effi- 12,000 2,728 2,901 2,792 opportunities to increase demand for Mitsubishi Materials tech- goal of creating a sustainable society, we have set ourselves targets 2,595 2,632 2,767 ciency equipment, optimizing device specifications, and reviewing 10,000 nologies and products that help save energy and reduce CO2 for the prevention of global warming, and are working on a compre- 1,482 1,676 1,717 1,706 operating practices. We are constantly working to save energy at 1,548 1,623 emissions. 8,000 hensive range of initiatives to achieve those targets, alongside smaller facilities too, including Head Office, branches, sales offices targets aimed at helping to establish a recycling-oriented society. 6,000 and research facilities, through measures such as installing LED 8,116 Preventing Global Warming 4,000 7,482 7,486 7,977 7,904 8,196  Targets for 2020 and Progress as of the End of Fiscal 2015 lighting. 2,000 Creating a recycling-oriented society/ Preventing global warming  Sector Applicability Details contributing to the environment Cement 0 Targets Progress Targets Progress We are working to reduce power consumption by using more 10 11 12 13 14 15 [FY] efficient equipment, including exhaust heat and other generation  Breakdown of Total Emissions for Fiscal 2015 [Thousand tons CO2 equivalent] Improve energy efficiency through the ongoing installation of energy • Energy consumption per unit • Waste/byproducts per unit  t All facilities saving equipment. Continue working to increase volumes of waste Reduction of 1.2% 435 kilograms per ton n Domestic Overseas

e systems, limestone-related equipment, large fans and specialist (Aomori, Iwate, accepted, in order to make more effective use of different types of (compared to FY2011) (Baseline: 406 kilograms per ton)  Non- Total m  Category group group e Yokoze, Kyushu, consolidated companies C waste. electrical equipment, and also to improve energy efficiency companies companies Higashitani) • Percentage of alternative thermal energy  Increase of 2% (compared to FY2011 through initiatives such as increasing the amount of alternative From energy sources (fuel, etc.) 2,942 594 1,045 4,581 Install high-efficiency equipment, and upgrade or install heat • Energy consumption per unit • Volume of E-scrap processed thermal energy sources that we use. From Processes 4,251 183 1,153 5,587 recovery and other such equipment at copper smelting facilities, Reduction of 1% per year Over 100,000 tons per year Naoshima  non-energy Waste 416 251 31 698 Smelter & in order to improve energy efficiency. Cater to growing volumes (14% overall reduction    SCOPE 1 sources s Refinery of E-scrap overseas, reinforce pre-treatment facilities, and step up compared to FY2006) Metals (direct) Other gases 22 35 0 57

ta l recycling operations. e We are using higher efﬁciency equipment, such as fans, pumps (Reference) Total from

M 4,689 468 1,184 6,342 Upgrade equipment to energy saving models as part of • Energy consumption per unit • Waste oil/acid non-energy sources manufacturing processes for copper and brass materials, copper Reduction of 1% per year Reduction of 40% (compared to FY2006)  and specialist transformers, to reduce power consumption, and are Sakai Plant  Subtotal 7,632 1,063 2,229 10,923 alloys and processed copper products. (15% overall reduction  aiming to improve energy efﬁciency through initiatives such as SCOPE 2 From energy sources compared to FY2006) 565 643 563 1,771 improving furnace equipment and operations, in order to lower (indirect) (power, etc.) Upgrade water chillers and heaters as part of air conditioning • Energy consumption per unit • Scrap generated systems, and other equipment, to energy saving models as part of Reduction of 20% (compared Reduction of 40% (compared to FY2010) fuel consumption. (Reference) Total from energy sources 3,507 1,237 1,608 6,352 Tsukuba Plant   s the manufacturing process for cemented carbide tools, and improve to FY2006) Total 8,196 1,706 2,792 12,694

oo l the overall efﬁciency of production equipment.

a  We are working to reduce power consumption by upgrading cemented carbide tools, reduce liquid waste through measures to Reduction of 15% (compared industrial waste produced per production value) into all  ＊ The above figures have been calculated in accordance with Version 3.5 of the Manual for ter i prevent leaks, and focus on development of environmentally friendly to FY2006) medium-term plans, and continue to achieve 100%. Gifu Plant  to higher efficiency equipment, including compressors and air Calculating and Reporting Greenhouse Gas Emissions issued by the Ministry of the Environment products.  • Continue to achieve targets for the number of certified and Ministry of Economy, Trade and Industry. d M a conditioning and refrigeration-related systems, switching to LED environmentally friendly products set out in medium-  IEA country-specific power emission coefficients used to calculate overseas CO2 emissions from nc e term plans. lighting, reviewing reactor and pump operations, and improving fiscal 2015 onwards. dv a A Reduce losses as part of the manufacturing process for cemented • Energy consumption per unit • COD load  Akashi Plant carbide products, through TPM activities, and improve wastewater Reduction of 10% (compared  No more than 1 ton per year  processes. to FY2011) Fifth Eco Contest Outstanding Achievement (Facility): Universal Can Corporation, Gifu Plant

s Upgrade refrigeration systems and other equipment to energy saving • Energy consumption per unit • Industrial waste generated per unit t

n  We have been running our Eco Contest e Yokkaichi Plant models as part of the manufacturing process for silicon products, and Reduction of 1% per year  (tons per ton-products) Universal Can Corporation has successfully reduced power consumption through operational optimiza- improve treatment processes for wastewater with additives. Reduction of 56.3% (compared to FY2006) 

po n since ﬁscal 2011, as an award scheme to tion, including improvements to blower pressure controls and adsorption systems, and has also managed m Upgrade air conditioning systems and other equipment to energy • CO2 per unit  • Number of environmentally friendly products  promote activities at facilities throughout to reduce industrial waste by separating, recovering and recycling oil from waste ﬂuids produced during

ri a preventing global warming, preserving re- Upgrade coolant water systems and other equipment to energy • Energy consumption per unit • Develop next generation components for high-efficiency saving models as part of the manufacturing process for functional Reduction of 1% per year inverters sources and protecting the environment. Grand Prize (Activity): Naoshima Smelter & Refinery Mat e c i materials. Continue to develop next generation components for high (15% overall reduction (Reduction in CO2 emissions when using products: at  n Sanda Plant The results of our fiscal 2015 contest are o  The Naoshima Smelter & Refinery has been working to increase its processing capacity for E-scrap and efficiency inverters. compared to FY2006) least 3x higher compared to FY2009) 

ct r outlined on the right. (No Facility Grand

e to improve pretreatment furnace operations, enabling it to give more metal resources back to society, re-

l *Speciﬁc to this plant We have set out the following scale to indicate E progress. Prize) duce consumption of fossil fuels, and minimize the amount of waste it generates. : 100% achievement of targets for ﬁscal 2015 or higher, : Between 80% and 100% achievement, : Between 50% and 80% achievement, : Less than 50% achievement

39 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 40 Material Issues 2 Environmental Preservation and Technology Preventing Global Warming

oo l the overall efﬁciency of production equipment.

T  Advanced Materials & Tools, Electronic Materials & Components ＊ “Group companies” includes 99 consolidated subsidiaries (57 domestic, 42 overseas). Upgrade compressors as part of the manufacturing process for • Energy consumption per unit • Incorporate industrial waste indicators (volume of ls & [Group company data does not include figures for Hitachi Metals MMC Superalloy, Ltd.] a  We are working to reduce power consumption by upgrading cemented carbide tools, reduce liquid waste through measures to Reduction of 15% (compared industrial waste produced per production value) into all  ＊ The above figures have been calculated in accordance with Version 3.5 of the Manual for ter i prevent leaks, and focus on development of environmentally friendly to FY2006) medium-term plans, and continue to achieve 100%. Gifu Plant  to higher efficiency equipment, including compressors and air Calculating and Reporting Greenhouse Gas Emissions issued by the Ministry of the Environment products.  • Continue to achieve targets for the number of certified and Ministry of Economy, Trade and Industry. d M a conditioning and refrigeration-related systems, switching to LED environmentally friendly products set out in medium-  IEA country-specific power emission coefficients used to calculate overseas CO2 emissions from nc e term plans. lighting, reviewing reactor and pump operations, and improving fiscal 2015 onwards. dv a A Reduce losses as part of the manufacturing process for cemented • Energy consumption per unit • COD load  Akashi Plant carbide products, through TPM activities, and improve wastewater Reduction of 10% (compared  No more than 1 ton per year  processes. to FY2011) Fifth Eco Contest Outstanding Achievement (Facility): Universal Can Corporation, Gifu Plant

s Upgrade refrigeration systems and other equipment to energy saving • Energy consumption per unit • Industrial waste generated per unit t n  We have been running our Eco Contest e Yokkaichi Plant models as part of the manufacturing process for silicon products, and Reduction of 1% per year  (tons per ton-products) Universal Can Corporation has successfully reduced power consumption through operational optimiza- improve treatment processes for wastewater with additives. Reduction of 56.3% (compared to FY2006)  po n since ﬁscal 2011, as an award scheme to tion, including improvements to blower pressure controls and adsorption systems, and has also managed m Upgrade air conditioning systems and other equipment to energy • CO2 per unit  • Number of environmentally friendly products  promote activities at facilities throughout to reduce industrial waste by separating, recovering and recycling oil from waste ﬂuids produced during

& C o Ceramics Plant saving models as part of the manufacturing process for electronic Reduction of 30.8% At least one per year the Mitsubishi Materials Group, aimed at s   the can manufacturing process, using a system of centrifugal separation. l devices. Develop commercial oil temperature sensors for motorcycles. (compared to FY2006) ri a preventing global warming, preserving re- Upgrade coolant water systems and other equipment to energy • Energy consumption per unit • Develop next generation components for high-efficiency saving models as part of the manufacturing process for functional Reduction of 1% per year inverters sources and protecting the environment. Grand Prize (Activity): Naoshima Smelter & Refinery Mat e c i materials. Continue to develop next generation components for high (15% overall reduction (Reduction in CO2 emissions when using products: at  n Sanda Plant The results of our fiscal 2015 contest are o  The Naoshima Smelter & Refinery has been working to increase its processing capacity for E-scrap and efficiency inverters. compared to FY2006) least 3x higher compared to FY2009) 

ct r outlined on the right. (No Facility Grand

e to improve pretreatment furnace operations, enabling it to give more metal resources back to society, re-

39 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 40 Material Issues 2 Preventing Global Warming

Reducing Greenhouse Gas Emissions from Logistics Hydroelectric Power Businesses Mitsubishi Materials’ CO2 emissions from shipping in fiscal 2015 Producing Renewable Energy We have a long history of generating hydroelectric power. In Akita Geothermal Heat Pump Systems totaled 41,703 tons, down by 3,902 tons compared to the previous prefecture, we built seven hydroelectric power plants for the Geothermal Power Generation business Mitsubishi Materials Techno Corporation is actively working on year. Energy efficiency was also down however, due to a lower rate purpose of supplying enough power to run Osarizawa Mine. Of We generate clean,and stable electric power through our Ohnuma research and development of systems capable of harnessing of shipping by sea and an increase in low-volume, high-frequency those power plants, six are still operating today (as of July 2015), Geothermal Plant and Sumikawa Geothermal Plant (steam supply “ground-source heat” as a form of renewable energy. It has shipping. As a result, energy consumption per unit came to 15.96 selling on the power that they generate to power companies. In ＊ only), both in the Hachimantai area of Kazuno, Akita prefecture. successfully developed commercial systems using the borehole, kiloliters per million ton-kilometers 1, a decline of 1% on the fiscal 2015, our hydroelectric power plants generated at total of ＊ In fiscal 2015, we generated a total of 379 gigawatt-hours of foundation pile and horizontal methods, with over 80 systems previous year. On a consolidated basis 2, CO2 emissions totaled 70 gigawatt-hours of power. This equates to a 50,000-ton power, which is equivalent to a 280,000-ton reduction in CO2 installed nationwide since 2003. 77,697 tons (down 3,322 tons on the previous year), with energy reduction in CO2 emissions compared to oil-fired power plants, emissions compared to oil-fired power. From 2011 to 2013, one of the company’s geothermal heat consumption per unit coming in at 20.30 kiloliters per million thereby contributing to efforts to combat global warming. Technology and Environmental Preservation On May 25, 2015, Yuzawa Geothermal Power Corporation pump systems was used for cooling and heating for a quadruple ton-kilometers (deteriorated 3% from the previous year). (jointly funded by Electric Power Development Co., Ltd., Mitsubishi Solar Power Businesses tracking project on the Odakyu Line. The project was even granted 2 We will continue to work on improving transport efficiency in Materials and Mitsubishi Gas Chemical Co., Ltd.) started construc- We are committed to our renewable energy business here at the a subsidy by the Ministry of the Environment, for the development the future, focusing particularly on efficient shipping by sea. tion of Wasabizawa Geothermal Power Plant in Yuzawa, Akita Mitsubishi Materials Group, underpinned by a long history, and a of technology to help promote global warming countermeasures. ＊1 Refers to the amount of energy consumed in kiloliters crude oil equivalent (kl) divided by transportation in ton-kiloliters (million ton-kilometers) prefecture. The plant is expected to be running by 2019. We are wealth of technology and expertise. In light of growing public In April 2015, Mitsubishi Materials Techno installed an “open ＊2 Consolidated figures refer to six companies classed as “specified shippers,” accounting also conducting ongoing studies in Appi in Iwate prefecture, Musa- demand in recent years, and changes in the business environment loop” geothermal heat pump system at its offices in Kazuno, Akita for over 90% of emissions from domestic group companies. dake in Hokkaido (joint study with Japan Petroleum Exploration such as the feed-in tariff scheme, we are continuing to develop our prefecture, and is monitoring its effects to see if it achieves Co., Ltd. (JAPEX) and Mitsubi- operations event further. expected levels of efficiency.  CO2 emissions according to mode of transport (Unit: Tons CO2) shi Gas Chemical Co., Ltd.), We entered the solar power business in 2013, making effective As geothermal heat pump systems become increasingly wide- FY2014 FY2015 Bandai in Fukushima prefecture use of Group’s idle land. We began constructing power plants in spread, the company is focusing on the development more visual Mitsubishi Materials 6 group companies Mitsubishi Materials 6 group companies Preventing Global Warming Total 45,605 35,414 41,703 35,994 (joint study with nine other four locations as part of a joint venture with Mitsubishi UFJ Lease systems, whereby information such as ground temperature, power Road 8,010 27,312 7,842 28,147 companies), and Komonomori & Finance, in Irigama, Makabe, Fukui and Torigoe. These plants consumption and energy conservation is displayed clearly on the 2 Rail 1 28 0 26 in Akita prefecture, as we con- will cover a total area of approximately 230,000m and will have screens of appliances such as air conditioners, so that operating Sea 37,594 8,069 33,815 7,821 tinue to work on increasing a generational capacity of 16.4 MW. Our power plants in Makabe data can be recorded, analyzed and used to manage systems more Air 0 5 46 0 renewable energy. and Fukui were brought online in December 2013, followed by effectively. Conceptual drawing of the completed Torigoe in April 2014 and Irigama in January 2015. All facilities Wasabizawa Geothermal Power Plant  New geothermal projects have continued to operate smoothly since then. In July 2015, we started construction of a new solar power plant Recovery and Underground in the town of Yabuki in Fukushima prefecture. The plant is sched- Storage of CO2 Musadake uled to commence operations in June 2016. Although all the power that we generate is sold to power com- Having been keeping a close eye on new carbon dioxide capture and Komonomori panies of each regional area, we are also examining other business storage (CCS) technology, capable of isolating and recovering CO2 Appi from production activities and storing it underground rather than re- Wasabizawa models, including supplying power to our own plants and the Geothermal leasing it into the air, in May 2008 we invested in Japan CCS Co., surrounding areas in the future, as we continue to carry out studies Power Plant Ltd. and began to get involved in its activities. Japan CCS was estab- into new facilities on idle land. Outline of an open loop system (displayed on the visual screen) (under construction) Bandai-Azuma- lished with the aim of developing and conducting feasibility studies  Examples of systems in use into the relevant technology. As we have continued to focus on ap- Adatara plications for the outstanding technologies we have built up over  Reduction in CO2 emissions thanks to renewable energy Started Facility Location operations many years, in areas such as excavation and geological assessment, Geothermal power generation Hydroelectric power Machinaka Information Center Ohnuma Geothermal Plant Kazuno and Komatagawa water systems Hirosaki 2004 working with Japan CCS (air conditioning and melting snow) Geothermal power (steam supply) Reduction in CO2 emissions compared has enabled us to con- Dialogue with Local Residents Tokyo Skytree (district heating and Tokyo Sumikawa Geothermal Plant to oil-fired power 2012 tribute to large-scale Bore hole cooling system: DHC) (Sumida ward) Environmental Preservation Panel of the Wasabizawa Geothermal Power generated Reduction in CO2 CCS testing in Tomako- systems Mitsubishi Materials [MWh] [thousand tons] Saitama 2010 mai and to a suitability Power Plant has been established on September 17, 2014 in order 800,000 500 New Omiya Building (air conditioning) to share information on the preservation of the surrounding environ- Ishinomaki Port Government Building study for CO2 storage, as 410 Ishinomaki 2014 386 (air conditioning) ment and progress with the construction and operation of Wasabi- 363 part of a project in con- 349 zawa Geothermal Power Plant, 600,000 334 325 327 375 Sanno Junior High School (Akita City) junction with the Minis- 312 317 321 Akita 2004 (air conditioning and underfloor heating) try of Economy, Trade between Yuzawa Geothermal 280 282 Power Corporation, local residents Foundation National Institute of Advanced Industrial and Industry and the 400,000 250 pile systems Science and Technology Tsukuba 2013 Ministry of the Environ- and other concerned parties. International Industry-Academia ment that has been on- Discussions at the second panel Collaborative Research Center 200,000 125 meeting in February 2015 included Setagaya-Daita Station and Tokyo going since fiscal 2015. 2014 an outline of construction plans Horizontal Higashi-Kitazawa Station (Odakyu Line) (Setagaya ward) systems Hosokura Material Mining Company Kurihara, and the conclusion of an environ- 0 0 2014 04 05 06 07 08 09 10 11 12 13 14 15 [FY] Filter press facilities (air conditioning) Miyagi prefecture Outline of CCS mental preservation agreement. Wasabizawa Geothermal Power Plant (courtesy of Japan CCS Co., Ltd.) ＊ The above figures have been recalculated based on the latest data published by the Open loop Mitsubishi Materials Techno Corporation Kazuno, Presentation for local residents 2015 Central Research Institute of the Electric Power Industry (2010). systems Kazuno office (air conditioning) Akita prefecture

41 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 42 Material Issues 2 Preventing Global Warming

41 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 42 Material Issues 2 Environmental Preservation and Technology Preventing Environmental Pollution

Bearing in mind our wide-ranging business activities here at the Mitsubishi Materials Group, we carry out environmental preservation activities in line with the nature of our operations and the characteristics of each area. Initiatives include preventing environmental contamination, organizing drills to prevent contamination from spreading in the event of an accident, and reducing waste.

We take the environment into consideration at every stage of our proven to be harmful to human health, it is subject to legislation We continue to maintain mining sites and manage dumps (sites  Mitsubishi Materials Group closed mines (nonferrous metals) business activities throughout the Mitsubishi Materials Group, and such as the Water Pollution Control Act and the Soil Contamina- used to dump rubble from mining, slag and sediment from mine make every effort to prevent air and water pollution, and reduce tion Countermeasures Act. We have therefore introduced an drainage treatment) at our closed mines, as well as treating acidic waste and harmful substances, in line with the nature of each of alternative washing mechanism designed to reduce usage of mine drainage containing heavy metals from disused mines and Shimokawa our businesses. dichloromethane at our Akashi Plant. We are aiming to increase dumps. We also have to engage in extensive management activi- Teine alternative washing mechanisms in the future so that we can stop ties, including ensuring safety at mine mouths and mining sites. In Chitose Minami-Furutobe using dichloromethane entirely. recent years, we have been working on initiatives aimed at reduc- Komagi ing environmental impact even further, including taking steps to Preventing Air Pollution Yatani Osarizawa ☆ prevent mine damage and hazards in the event of torrential rains Sado Gold Mine (tourist mine) Sado ☆ Hosokura ☆

We use manufacturing processes that emit air pollutants such as Technology and Environmental Preservation Reducing Waste or a major earthquake, reducing the volume and improving the Ikuno ☆ dust, sulfur oxides (SOx) and nitrogen oxides (NOx), as a result of quality of mine drainage, and exploring lavor-saving treatment Akenobe Takatori burning fuel for instance. In particular, our cement and copper 2 Effectively reusing used products between facilities technologies for the treatment of mine drainage. ☆ manufacturing operations account for the majority of those Toi The Sanda Plant Shizuoka DBA Center manufactures DBA We also continue to maintain and improve tourist facilities at emissions. We ensure stable operations at each of our facilities, Myoho substrates and used to produce around 1,000 tons of waste ferric selected closed mines, so that we can use part of mines as a form and adequately maintain the performance of electric dust Obira chloride every year. Our Naoshima Smelter & Refinery meanwhile of cultural heritage, showing people how they used to operate in collectors and other such emission treatment equipment, in an Makimine specializes in copper smelting and used to purchase and consume the past and preserving mining technologies for future genera- ☆ Sites operated as tourist mines effort to minimize emissions of air pollutants. large quantities of ferric chloride as part of the wastewater tions. At our cement plants meanwhile, we are taking a number of treatment process. Having resolved issues such as quality and measures in relation to the treatment of sewage sludge, including Mine Drainage Reduction Initiatives reliability of supplies, we have started to reuse the waste ferric minimizing odors through measures such as installing double Underneath our closed mines, there are still cavities left behind Violations of the Mine Safety Act and other chloride at the Naoshima Smelter & Refinery and expect to reduce doors on intake facilities and maintaining negative pressure inside from excavated minerals and shafts. When rain water seeps into Legislation the amount of industrial waste that we produce as a result. facilities. the ground and comes into contact with minerals, they form acidic Our subsidiary Eco-Management Corporation manages closed Reducing waste from manufacturing secondary products mine water containing heavy metals. mines that were previously operated by Mitsubishi Materials, Preventing Environmental Pollution Once concrete has been delivered to a construction site, it is This mine water is then combined with water seeping from working to prevent mine damage through measures such as Preventing Water Pollution common practice to dispose of any leftover concrete as industrial dumps and neutralized at a mine water treatment facility. Once all treating mine wastewater. Treatment costs are funded in part waste at a ready-mixed concrete plant. Chikushi Ryoko Ready of the heavy metals have been removed, it is then discharged into by national and local government subsidies. As part of its mine wastewater treatment operations at As well as seawater, which we use as coolant for thermal power Mixed Concrete Co., Ltd. in Kyushu is working to manufacture the river. We need to manage mine water treatment process generation at our cement plants and at our copper smelting facili- semi-permanently. Reducing mine water is a key priority in order Komaki Mine Wastewater Treatment Plant at Osarizawa Mine concrete blocks using leftover concrete. It then uses blocks to build (Akita prefecture), the company was found to have discharged ties, we also use industrial water, groundwater and river water, dividing walls onsite or sells them to customers (activities currently to reduce the amount of energy and chemicals used in this process. which we discharge into the sea, rivers and sewers after use. Our untreated water and altered reported volumes over a consider- ongoing at four out of eight plants). As a result, in fiscal 2015 we By way of a solution, blocking up cavities in order to cut off the able period of time, coinciding with increased volumes of water copper smelting plants, and manufacturing facilities producing managed to reduce industrial waste by approximately 2,200 tons supply of oxygen would reduce the volume and improve the quality due to conditions such as melting snow or torrential rains. As a electronic materials and aluminum products, emit relatively high over the course of the year across all four plants. of mine water being produced. We are therefore working to result, Eco-Management was issued with a stern warning by the levels of water pollutants, such as biochemical oxygen demand develop filling materials, made from neutralized sediment from Ministry of Economy, Trade and Industry (METI) and the Tohoku (BOD), chemical oxygen demand (COD), suspended particulate mine drainage treatment, and technology to fill underground cavi- Branch of the Kanto Tohoku Industrial Safety and Inspection matter and nitrogen. ties back with filling materials. At Teine Mine in Hokkaido, we have Department, a subdivision of METI, for actions in violation of We install effluent treatment systems at all of our facilities, and undertaken construction work to block mines covering a total the Mine Safety Act, the Act on Special Measures for Pollution make every effort to prevent water pollution through steps such as length of around 900 m, using approximately 6,400 m3 of filling Caused by the Metal Mining Industry, etc., and the Act on Ratio- nalization of Budgetary Spending on Subsidies, etc. It was also imposing management targets that are even stricter than waste- materials made by combining cement raw materials with neutral- instructed to return subsidies and had further subsidies sus- water standards. We also take measures to prevent chemical or oil ized sediment. Having finished filling the mine in November 2014, pended for a period of 18 months. leaks, including installing dikes, inspecting equipment on a daily we are now in the process of checking the results. (This project We are implementing the following preventive initiatives to basis, and conducting drills aimed at preventing the spread of sub- started out as a research project commissioned by the Ministry of ensure that nothing like this happens again in the future. stances in the event of a leak. Manufacturing concrete blocks Blocks being used as a dividing wall Economy, Trade and Industry in fiscal 2009 and was later contin- (1) Improving facilities ued as an in-house project from fiscal 2012 onwards.) • Upgrading facilities’ ability to cope with torrential rains To implement measures such as these, we need to accurately • Covering areas at surface level with the aim of reducing mine Chemical Management Managing Closed Mines identify the position of old mines. Once we have pinpointed the wastewater relevant locations through geophysical exploration, as a form of At our Akashi Plant, we manufacture cutting tools that are As a company with its origins in the mining industry, the Mitsubishi (2) Improving management geological survey, we expect to be able to ascertain conditions designed to improve cutting performance, including cemented Materials Group owns a wide range of different mines around • Examining the viability of facility capabilities inside mines on an unmanned basis, simply by boring a hole from carbide end mills coated with films that offer superior heat and Japan, including limestone, coal, and nonferrous metals such as • Reinforcing management personnel, and reliably implement- the surface and inserting a miniature camera. (This project was abrasion resistance. Film coating requires that the surface of each copper, lead and zinc. Although we have suspended or discontin- ing compliance and CSR education implemented under the Ministry of Economy, Trade and Industry • Improving operating standards, procedures and manuals, and tool be clean. To achieve that, we use detergents consisting of ued mining operations at all of our nonferrous mines, we still assign from fiscal 2013-2015). effectively implementing emergency drills organic solvents such as dichloromethane, which has excellent members of staff from subsidiaries responsible for managing closed • Taking steps to prevent input errors or alterations, etc. degreasing and volatile properties. As dichloromethane has been mines to manage our 16 closed mines on a permanent basis.

43 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 44 Material Issues 2 Environmental Preservation and Technology Preventing Environmental Pollution

43 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 44 Material Issues 2 Environmental Preservation and Technology

Preserving the Natural Environment mental forest,” designed to familiarize local people with our Sustainable Management and Operation activities based on appropriate zoning. We always take biodiversity and the natural ecosystem into consideration here at the Mitsubishi Materials Group, to ensure that our of Company-Owned Forests We have also set out distinct roles for other forests, as part of our business activities remain in harmony with society and the environment. As well as conducting environmental studies and working commitment to managing forests in a rational and efficient manner to preserve the environment at mines and facilities located in or adjacent to natural parkland, we are also committed to the sustain- Basic Approach to Sustainable Forest Management so that they can fulfill their individual functions more effectively. able management of company-owned forests. We currently own around 14,500 hectares of forestland in Japan, Bibai mainly in Hokkaido, making us one of the largest corporate owners Nishino of forestland in Japan, after the likes of paper manufacturing  Distribution and scale of Teine companies. We originally began acquiring forests for the purpose company-owned forests Otaru Protecting Rare Plant Species at Limestone Mines Hayakita (Mount Buko) of supplying wooden supports for our own mines and coal mining Shiraoi Preserving Biodiversity Mori At Ryoko Lime Industry Co., Ltd., we work in conjunction with two activities. As we no longer operate domestic mines or engage in Hokkaido Ecosystems are made up of a complex web of different mechanisms. Nigorikawa 11,541ha neighboring mining companies to mine limestone from Mount coal mining however, our forests now fulfil different roles and are Once damaged, it can be hard to restore those mechanisms. Buko, located in the western part of Saitama prefecture. We also subject to different expectations. East Japan Osarizawa We have signed up to the Keidanren (Japan Business Founda- 1,288ha engage in activities aimed at preserving rare plant species on In addition to preserving biodiversity and helping to prevent tion) Declaration on Biodiversity, and participate in activities as a Mount Buko, and have been commissioned by the local board of global warming by absorbing CO2, we want our forests to fulfill “Promotion Partner.” Sado education to protect and propagate rare species unique to the their various public functions to the full, not least in terms of producing wooden resources. That is why we are working with Mikobata Monitoring Water Quality at Copper Mines area, including Akenobe (Copper Mountain Mine, Huckleberry Mine) primroses, wild Mitsubishi Materials Real Estate Corp., which manages our Technology and Environmental Preservation We invest in overseas mines, in lilies and cherry company-owned forests, to ensure sustainable forest manage- 2 order to reliably secure the raw blossom, all of ment, with the aim that Mitsubishi forests will lead the way for West Japan materials we need. When doing so, which grow in the forests throughout Japan. 1,684ha In recognition of sustainable forest management initiatives such Ikuno we evaluate whether or not Buko Rare Plants Hogasho biodiversity is being taken into Garden at one of as these, on October 1, 2012 we obtained certification from the Makimine consideration as part of mine our company- Sustainable Green Ecosystem Council (SGEC) at Hayakita Forest in management, from the standpoint owned forests. Protection activities Hokkaido. We remain committed to adequate forest management of a shareholder. on a daily basis, so that we can obtain certification for our other  Main Rare Species Listed in the Red Data Book, Protecting Plants at Coal Mines (Hokuryo Bibai Mine) Based on Wildlife Surveys Conducted at Company-Owned Forests Located in British Columbia, company-owned forests too. Hokuryo Corporation mines coal from Hokuryo Bibai Mine, an Canada, we continually monitor the open-pit mine located in the city of Bibai in Hokkaido. Having Role of Individual Forests Birds and Black woodpecker, peregrine falcon, quality of water in local rivers at mammals goshawk, etc. conducted a study into the impact that starting operations would Located on a relatively gentle incline, Hayakita Forest provides the both of these mines, in accordance have on forestland, the results identified the presence of Amur ideal environment for producing timber. It is also situated close to Poplar admiral, Japanese crayfish, Preserving the Natural Environment with water quality guidelines issued Aquatic species Adonis flowers, which are designated as an endangered species in paper factories that use a great deal of wood, and to the Port of and insects masu salmon, etc. by the state government. the Hokkaido Red Data Book listing species of plants and wildlife Tomakomai, which is heavily used for shipping outside Hokkaido. Japanese wood poppy, acer miyabei, Monitoring water quality As such, it is positioned as a “resource forest” for the sustainable Plants at risk of extinction in Hokkaido. As a result, we have been Japanese peony, etc. transplanting any Amur Adonis flowers found in the stripping area production of timber and other Landscape Survey for Namosi Copper/Gold Ore Project to locations outside our sphere of operations. wood products. In contrast, Teine We are currently at the pre-development stages of a copper and Forest is located within the city gold ore project in Namosi, Fiji, and are conducting surveys to Facilities Located in or Adjacent to Natural Parkland limits of Sapporo, and is well suited determine the impact that development is likely to have on the Some of the Mitsubishi Materials Group’s business activities to growing useful trees such as environment. We commenced research into biodiversity take place in locations inside or adjacent to natural parkland. We Japanese oak, monarch birch and offsetting* in fiscal 2015, and are also conducting a survey into make sure that we pay special attention to the natural environment Japanese lime. It is therefore the impact that development will have on the landscape. at all such facilities. positioned as a suburban “environ- Teine Forest Black woodpecker Poplar admiral Japanese wood poppy  Main facilities located in or adjacent to natural parkland Initiatives at Limestone Mines (Cushenberry Mine) Site area Location and adjacent facility 2 Natural parkland Mitsubishi Cement Corporation (USA) extracts limestone from (thousand m ) Achieving Sustainable Management Mitsubishi Materials Corporation Cushenberry Mine in California and manufactures cement at the To enable our forests to fulfill their various functions, it is essential that we monitor conditions on a daily basis and continue to manage forests in an ad- • Aomori Plant 124 Shimokita Hanto Quasi National Park equate manner. Around 80% of our company-owned forests are in Hokkaido, which has long winters with bitterly cold temperatures that remain below foot of the mine. In partnership with local experts, it is working to • Ohnuma Geothermal Plant 60 Towada-Hachimantai National Park restore vegetation to mining areas in which development has freezing even during the day. During this season however, we can rely on leaves falling from the trees and there being a covering of snow over any bamboo • Yokoze Plant, Ceramics Plant 281 Buko Prefectural Park or other undergrowth below. This makes it the ideal time of year to conduct tree surveys because it is easier to walk around the forest. finished. So far it has planted trees across an area of over 25,000 • Naoshima Smelter & Refinery 1,811 Setonaikai National Park We continue to conduct tree surveys like this every year, as an important part of our preparations for clear cutting and thinning in fall the following year. square meters, with a • Higashitani Mine 3,358 Kitakyushu Quasi National Park Chikuho Prefectural Park Other activities include re-planting cut areas in spring every year, and forest maintenance in summer, including cutting back undergrowth. We also study survival rate of nearly 90%. the environmental impact of our Mitsubishi Cement Corporation San Bernardino National Forest 4,006 forest maintenance activities and The company has also (USA) (USA) maintained watering sta- monitor rare species, in an effort to Ryoko Lime Industry Co., Ltd. 823 Buko Prefectural Park preserve biodiversity. tions since the area was Mitsubishi Cable Industries, Ltd. 52 Nishiarida Prefectural Natural Park Other activities include conducting operational, in an effort to damage surveys and population stud- protect bighorn sheep, deer ies, to prevent trees from being dam- * Biodiversity offsetting is a mechanism that enables business operators to compensate for aged by deer, rats or other wildlife and other wildlife living in the impact they are having on their surrounding ecosystem. If an operator engaging in the hills behind the mine. Wild animals using a watering station development or other such activities takes sufficient steps to avoid or minimize operations that feeding on them. Depending on dam- will impact on the surrounding ecosystem, but still ends up having a negative impact, they can age levels, we also work with local instead restore or create a different ecosystem based on the Polluter Pays Principle (Source: communities to exterminate pests. Forest Division, Mitsubishi Materials Cutting and processing logs After planting new saplings Ministry of the Environment Website) Real Estate Corp.

45 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 46 Material Issues 2 Environmental Preservation and Technology

45 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 46 Material Issues 2 Environmental Preservation and Technology Developing Environmental Technologies and Products

We bring together a wide range of human resources and technologies from across each of our in-house and group companies to engage in research and development, spearheaded by our Central Research Institute. The environmental and recycling business is one of our key focuses from a medium- to long-term standpoint, as we continue to develop an array of environmental technologies and products.

On a longer-term basis, we intend to boldly take on the chal- Basic Policy on R&D lenge of creating inspirational new technologies for the future. Developing Environmental Technologies Lithium Ion Battery Technology and Products Accelerating timely development of new products and Development strategy for environmental technology Lithium ion batteries are widely used for purposes such as hybrid technologies in line with market needs We are also committed to improving manufacturing processes in Based on the vision set out in our long-term management policy – vehicles and electronic devices. In August 2014, we announced Our basic policy when it comes to technical development is to bring each of our business divisions and developing products that reduce “we will become the world’s leading business group committed to that we had developed a new recycling technology for fluorine compounds and organic solvents contained in the electrolytes found in together technologies, human resources and passion from across environmental impact. By way of a specific example, we have used supporting recycling-oriented society through materials innova- the Mitsubishi Materials Group to achieve innovation, with an computer analysis to optimize operating conditions and achieve lithium ion batteries. Now that we are able to recover high-purity tion, with use of our unique and distinctive technologies” – we aim calcium fluoride powder from fluorine compounds, we can reduce emphasis on the customer’s perspective and speed. Our aim is to even further reductions in fuel-derived CO2 emissions at our to harness our distinctive synergy as a complex business entity and environmental impact by reusing it as a raw material in fluorine provide the world with new materials based on our unique cement plants, and have rolled out the same technology to establish a Materials Premium. As a result of our ongoing research chemical products, as used by group companies in items such as Technology and Environmental Preservation technologies. That means creating distinctive products and manufacturing processes for copper smelting and polycrystalline and development activities in the priority areas of vehicles, semiconductors and LCD panels. This is one way in which we can establish a Materials Premium, by harnessing synergy as a complex 2 technologies that will be competitive in the global market, and silicon. We are also developing technologies capable of harnessing electronics, energy and environmental recycling, we have success- business entity, as well as across group companies. upholding our strategy of becoming the world’s leading business alternatives to fossil fuels, including waste plastic and shredder fully developed the following new products and technologies. group. dust from waste appliances and vehicles, using recycled raw • Fluorine recycling technology capable of recycling lithium ion  New processing procedure for electrolytes from lithium ion Broadly speaking, we engage in technical development along materials in the smelting process, and recovering rare metals from batteries batteries three timelines. Firstly, we aim to create timely new products and urban mines. Condensed Used as • CBN grade BC8110 for high hardened steel turning, with Organic Liquid technologies that will help us to become the number one, or “only On other fronts, we are committed to enhancing added value solvent solvent an auxiliary features including a special coating fuel, etc. one,” in each of our lines of business under our current from our products, by saving energy or extending product life • Mass production technology for PZT MEMS piezoelectric films, Electrolyte Vaporized medium-term management plan. Over the medium term, we spans for instance, and are working on development in areas such enabling a two-fold increase in productivity compared to Calcium intend to develop new businesses that will tap into future demand as coating films for cemented carbide products, battery materials, Fluorine fluoride Fluoride previous levels compounds powder recycling in priority areas such as vehicles, electronics, energy and connector terminals, insulated circuit boards and temperature Hydrolysis ® environmental recycling, and develop into core businesses. sensors. • PIC Plated technology for automotive terminals, using alloy shape control to provide low friction performance • Cu heat sink-integrated DBA substrate, featuring direct bonded  Technology development strategy  Priority areas Cu heat sink for superior radiation properties The world’s leading business group • MSP®5 copper alloy for small terminals, with outstanding Creating distinctive products and technologies to committed to supporting provide the world with new materials recycling-oriented workability thanks to Mg solid solution hardening technology society Electronics Vehicles

Power components and Products Technologies Developing Environmental Medium-term Future needs Long-term management plan in priority areas management policy Number one and “only New core business for Inspirational new products one” in each business the medium to long term and businesses Energy storage Sensing Urban mine resource recycling Mitsubishi Materials Group Eco-Products Themes Accelerating development Developing new products and Development marketing activities technologies Cu (copper) heat sink-integrated DBA substrate with superior radiation properties. Establishing a “Materials Premium” Thermal management components Developing new DBA substrates are circuit substrates used for inverter modules, meaning that they require businesses Unique technologies Energy Environment improved radiation properties. Heat sinks have conventionally been soldered onto substrates, Challenges for and recycling AI the future which limits their radiation properties due to issues such as the low conductivity of solder itself Ceramic 3 years 5 years 10 years and thickness. We therefore decided to bond a Cu (copper) heat sink directly onto our DBA AI substrates in order to significantly reduce thermal resistance. As well as extending the Cu heat sink substrate’s life span, by preventing cracking or warping at higher temperatures, this is also Cu (copper) heat sink-integrated DBA substrate Communication via the Central Research Institute R&D Review expected to increase usage for purposes such as hybrid vehicles. Ever since it was first established, the Central Research Institute has continued to engage in a wide ® range of research and development activities, focusing particularly on the materials sector. Although MSP 5 copper alloy with world-leading concentration of magnesium (Mg) we have always published individual results in the form of academic papers or patent applications, Developed in conjunction with Mitsubishi Shindoh Co., Ltd., MSP®5 copper alloy boasts perfor- showcasing the research and development activities that underpin the creation and development of mance that is the same as or better than regular products in terms of strength, conductivity and our business, in 2012 we launched the Mitsubishi Materials Central Research Institute R&D Review, stress resistance (reduced susceptibility to springs collapsing), whilst at the same time offering in an attempt to provide a more structured overview for people both inside and outside the company. Tab and Receptor Published annually, the third edition was released in 2014. It provides a simple outline of the Central superior formability for terminals. Materials are less prone to cracks or breakages, even when Research Institute’s number one and “only one” research activities, including special features on shaped into a box configuration, and are ideally suited as alloy materials for small terminals, as sintering and bonding technologies, which are inextricably linked to our operations in the fields of used in electrical vehicle components. In addition to our range of MSP®5 products, we are advanced materials and tools business, and electronic materials and components. We hope that ini- looking to make an even greater contribution to improved environmental performance through Product coils tiatives such as these will help us to speed up the development of new products and businesses even electrical vehicle components in the future. further. Central Research Institute R&D Review

47 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 48 Material Issues 2 Environmental Preservation and Technology Developing Environmental Technologies and Products

47 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 48 Material Issues 3 Training and Harnessing a Diverse Range of Human Resources Developing Human Resources and Promoting Diversity

We are fully committed to training and harnessing human resources, as the basis of our competitive edge as a company. We provide our employees with opportunities to improve themselves and achieve self-realization, through our wide-ranging business activities and through extensive training programs, and make every effort to create an environment in which employees ﬁnd their work rewarding.

Overseas Human Resource Development Conducting Employee Surveys and personal targets for instance. The center is also committed to Basic Approach to Human Resources In order to expand the Mitsubishi Materials Group’s overseas promoting disabled employment at group companies. operations with a sense of speed, we need to actively make the In an effort to implement the human resource strategy set out under With the rate of dis- We believe that human resources are the cornerstone of corporate most of overseas human resources. With that in mind, we are our long-term management policy, aimed at establishing an organi- abled employment at growth. That is why our human resource strategy is firmly focused planning to establish development programs for locally recruited zational culture powered by human resources with the ability to act, Mitsubishi Materials stand- on developing employees’ skills and making their work more employees at overseas group companies (national staff), based on we try to identify untapped potential and hidden issues on an ing at 2.34% as of March rewarding. We are committed to passing on the skills and specific policies aimed at localization and harnessing overseas organizational or individual level, and explore measures that will 2015, we continue to meet technologies we have built up over the course of our long history human resources. breathe new life into the organization and improve employee the statutory rate of in manufacturing to future generations, and aim to develop human We are currently accepting overseas managerial staff and tech- motivation. It was with that in mind that we asked Mitsubishi employment. resources who are capable of providing society with new forms of nical personnel, and are also working to roll out activities to Materials employees up to General Manager level to complete a added value. Employees planting greenery at our Saitama office overseas facilities once employees have gained the necessary survey in July 2014. Whereas the survey found positives such as a Reinforcing global human resource development expertise at Mitsubishi Materials. strong desire to keep on working for the company and an organiza-  Disabled Persons’ Employment Rate★ One of the key companywide strategies under our current We hope to continue making progress on a groupwide scale in tional culture built on respect for individual employees, it also [%] Disabled persons’ employment rate highlighted issues such as a lack of innovation and policies that fail 3.0 medium-term management plan is strengthening global competi- the future, in terms of developing and harnessing local human 2.60 2.56 2.47 2.45 2.51 and Harnessing a Diverse Range of Human Resources Training tiveness. With that in mind, we are working to expand and resources. to translate into motivation. Based on these results, we intend to 2.5 2.34 improve our global human resource development activities even push ahead with a range of initiatives designed to achieve our 3 2.0 further. We select employees who are due to be assigned overseas management vision, particularly terms such as “unique,” “number VOICE Statutory rate of disabled and young employees who are expected to make a considerable Local human resources underpinning global one” and “creating new materials.” 1.5 employment: 2.00% global contribution in the future, so that we can provide them with 0 business expansion 10 11 12 13 14 15 [All figures as of the necessary training. A total of 121 employees underwent the end of March] training in fiscal 2014 and 2015 under our Global Human Resource Diversity Initiatives As the Group’s management company in Rehiring the Recently Retired Development Program, which we launched in fiscal 2014. China, we are responsible for planning and Promoting Disabled Employment We rehire retired employees who wish to work, in order to give We are planning to provide education for around 300 global organizing CSR training here at Mitsubishi At our Human Resources Development Center (Saitama), we have them the opportunity to find reemployment at one of our offices or human resources over the course of five years from the first year of Materials (Shanghai), focusing primarily on Chinese staff at group companies. As introduced an “Only-One Scheme” designed to respect the abili- affiliated companies, whilst at the same time enabling us to this program. participants don’t tend to respond well to ties of individual disabled employees, based on the principle of continue benefiting from the skills and expertise of employees who one-way training whereby an instructor learning, growing and contributing to society through work. This have reached retirement age. A total of 53* people were newly simply talks at them, we have incorporated Global Human Resources Yun Sun in turn provides people with rewarding jobs that give them a sense rehired as part of this program in 2014. General Manager, elements such as exercises based on every- Administration Department day topics that are familiar to participants of purpose and motivation. We make every effort to maintain and We continue to look into reviewing this program in consultation Expanding global development for young employees Mitsubishi Materials improve upon high levels of motivation throughout, by encourag- between labor and management, in light of changing employment (Shanghai) Corp. and discussions, to enable them to develop an even better understanding. Looking ing disabled employees to work towards their own professional conditions for people aged 60 and over. Exploring, devising and implementing development programs for national staff ahead, we intend to take on board feedback from participants so that we can plan, organize and provide training that is more worthwhile Developing Human Resources and Promoting Diversity Employees in their 2nd Employees expected to be National staff (locally from the standpoint of those taking part. to 8th year with the assigned overseas within recruited employees at Greater Roles for Female Employees company two to three years overseas facilities) Eligibilit y Passing on Skills We have made it one of our key management strategies to harness a diverse range of human  Activities carried out by the Women’s

m Empowerment Committee Junior Global Program Global Management In addition to training for new recruits and mid-level employees, resources. In February 2015, we established the Women's Empowerment Committee in order (JGP) Program (GMP) Plans to establish to identify issues standing in the way of promoting greater roles for female employees, and and other position-specific training schemes, as a manufacturing Ｓｔｅｐ Progr a development programs to give recommendations on how solutions should be implemented. The committee has orga- Determine hypothesis in the future based on company we also provide training in maintenance skills for plant １ nized interviews with advanced companies in this area, and conducted a survey of all female • Language training • Language training specific needs, including equipment. We make every effort to maintain and improve mainte- ＳｔｅｐＳｔｅｐ • Training in awareness, • Training in specialist in-house company and employees and staff at manager level, in order to examine differences in awareness between Surveys (quantitative assessment) nance skills, in line with the various technologies used on the shop 2 4 il s skills and expertise knowledge (internal divisional policies for female employees and their workplaces. Other activities include organizing “town meetings” (external instructors) instructors) overseas operations, and floor as part of our wide-ranging operations. We also organize for female employees from nine regions across Japan, in order to access direct feedback from Det a • Overseas OJT policies for making the Ｓｔｅｐ Identify issues • Training in skills female employees working on the Town meetings (qualitative assessment) (2015 onwards) most of national staff training for Facility Management Engineers, using dedicated equip- 3 and expertise frontline and get them involved (external instructors) ment to pass on in formulating recommendations. Ｓｔｅｐ skills and train Set out direction (recommendations) Starting in the second half of 5 employees into fiscal 2016, we are planning to maintenance spe- improve systems based on recom- Recommendations cialists*. mendations and provide training to bring about a change in aware- Corporate culture Systems/conditions * Human resources with advanced specialist ness. skills, responsible for Awareness amongst maintaining equipment female employees/career development Women’s Empowerment Committee

Training for Facility Management Engineers

49 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 50 Material Issues 3 Training and Harnessing a Diverse Range of Human Resources Developing Human Resources and Promoting Diversity

Training for Facility Management Engineers

49 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 50 Material Issues 3 Preventing Global Warming

As well as existing initiatives such as No Overtime Day and Paid Leave Supporting In-house Regional Events Respect for Human Rights Work-Life Balance Day, in fiscal 2015 we also published articles advocating reduced We promote exchange through sporting activities, both inside and working hours in our in-house newsletter and provided managerial outside the company, and support sporting events organized by Basic Approach We are committed to creating working environments that enable our staff with information promoting reduced hours, as part of activities employees, by assisting with expenses for instance, in an effort to One of the articles of our Code of Conduct states that “we will employees to strike a balance between their work and their private aimed at raising awareness. In 2014, the total number of hours breathe new life into club activities. Futsal (five-a-side soccer) respect the basic human rights of all people and create a spirited, lives. As well as enabling employees to adapt their working patterns worked across all union employees averaged out at 2015.8 hours. tournaments, regattas and other such competitions take place safe and comfortable work environment.” As well as ensuring that in line with events in their lives, we make every effort to establish every year, with around 300 employees from throughout the we respect the dignity of each and every individual, and preventing and continually improve a range of support schemes so that employ- company taking part in fiscal 2015. any infringement on their honor or privacy, we also make sure that ees can advance their careers and take on challenging jobs. we do not discriminate unfairly based on race, gender, religion, Welfare Labor Union and Management Partnership Childcare and Family Care Support Systems nationality or any other factors not related to the relevant Our union shop scheme enables us to share information and We operate a range of childcare and family care support systems that individual’s abilities and performance. To achieve that, we organize Wellness Leave exchange opinions between labor and management on a regular go above and beyond legal requirements. In terms of childcare, we human rights awareness training on an ongoing basis in order to We allow our employees to carry over up to five days of unused basis. Our biannual Labor-Management Conference in particular allow employees to work reduced hours until their children reach the encourage individual employees (including short-term, part-time, paid leave each year, up to a maximum of 45 days, and then use is aimed at strengthening solidarity through active debate, third grade in elementary school. In addition to this, in 2014 we began temporary and contract employees) to take a personal interest in those days to take “wellness leave.” Employees can use wellness covering subjects such as recent issues, strategies and policies in granting partial paid leave for employees nursing children, introduced human rights issues, and to ensure that they maintain a leave for reasons relating to their own health, including recuperat- each sector, and establishing a shared direction in the interests of a childcare subsidy system, and established a new lump sum system deep-rooted awareness of the importance of human rights as part ing from illness or injury, or attending medical examinations or sustainable growth for the future. We also make time to fully to facilitate a quick return to work after taking childcare leave. We of their day-to-day activities, based on a resolute determination gynaecologist appointments, or for purposes such as caring for explain and consult on measures such as business restructuring. continue to improve support schemes such as these so that employees family members, taking leave to return home if working away from not to engage in, allow or tolerate any form of discrimination. As As of the end of March 2015, the number of union members and Harnessing a Diverse Range of Human Resources Training can strike a balance between raising children and doing their jobs. a result of promoting human rights awareness training on a their families, or taking part in volunteer activities. We are working amongst those directly employed by Mitsubishi Materials In terms of family care meanwhile, we provide leave for employees 3 companywide scale, 2,316 employees underwent a combined total to extend this system even further, and in fiscal 2015 extended (including employees on assignment) stood at 3,330. Including caring for family members, and allow employees to work reduced of 2,500 hours of training during fiscal 2015. eligibility to in- and out-patient fertility treatment. group companies, the total number of members was 6,309. hours up to 365 days for each family member they are looking after. Preventing Harassment We also allow employees to divide the leave and allocate accrued Optional Welfare Scheme Sexual, power-related and other forms of harassment can stifle leave towards caring for the same family member. We have introduced an optional welfare scheme in an effort to employees’ enthusiasm and erode an otherwise congenial working cater to our employees’ increasingly diverse needs. Figures show  ★ environment. We believe that stepping up educational and training Use of Major Systems (FY2015) that the number of employees using this scheme under each programs, and implementing a range of preventive and response Breakdown Men Women Total option, to go traveling or provide support, rose to 85% and 92%, respectively, in fiscal 2015. Clearly, a great many employees are measures, are both effective ways of combating harassment. In fiscal Percentage of paid holidays taken — — 82.3% 2015, we revised our guidelines on preventing sexual harassment to Number of employees taking maternity leave — 19 19 using the scheme to spend time with their families. reflect the contents of the revised Ordinance for the Enforcement of Number of employees taking childcare leave 2 36 38 Number of employees taking leave to care 2 0 2 ★ the Act on Securing, Etc. of Equal Opportunity and Treatment for a family member Employment Statistics (As of March 31, 2015) between Men and Women in Employment, which came into effect Employees using the childcare subsidy system 66 40 106 on July 1, 2014, and also organized training to raise awareness of  Payroll (full-time equivalent)  Employee Training human rights based on the theme of preventing harassment. Breakdown Full-Time Employess Temporary Staff Total hours of training (annual) Average hours per employee (annual) VOICE Nonconsolidated 4,448 928 In addition to an Internal Contact Office, we also appoint Comments from an employee who has 72,758 hours 16 hours in-house supervisors at each of our facilities to provide advice on used the childcare leave system 23,413 sexual harassment, and have established an external consultation Consolidated Japan 15,342 4,898 Developing Human Resources and Promoting Diversity Overseas 8,071  Graduate Recruitment service to ensure that all matters are handled appropriately. When we found out we were expecting (Consultation services were contacted with regard to 10 matters our third child, my wife and I talked Graduate recruitment ★  Employee numbers according to location (consolidated) Breakdown University graduates about what we would do after the birth High school graduates during fiscal 2015.) (including graduate school) and decided I would take childcare Location Employees Men 69 59 leave. It was just two months, but help- Japan 15,342 ing out with childcare and housework Women 12 12 Training for sexual harassment Asia 4,699 rather than leaving it all to my wife as Total 81 71 advisory supervisors and staff North America 2,839 previously made me appreciate just * We ensure fair treatment irrespective of gender, with no difference in benefits or wages 36 In November 2014, we organized training for supervisors and mem- how hard she works. Spending time Latin America between male or female employees. Europe 473 bers of staff working on sexual harassment advisory desks at each of Takumi Kawase with my children made me feel closer  our facilities. Participants listened to a lecture on our sexual harass- PLANT & EQUIPMENT ENGINEERING to them than ever before too. My col- Oceania 24 Employee Turnover (employees leaving the company in FY2015) ment prevention regulations and advisory framework, and on how GROUP, PLANT & EQUIPMENT leagues were very considerate, so I had Total 23,413 Aged Aged Aged 50 ENGINEERING DEPT. Breakdown Total to handle consultations. Gifu Plant no trouble taking childcare leave. I feel under 30 30-49 or over They also learnt the ba- truly grateful for the chance to have this  Breakdown of Employees (full-time equivalent) Men 20 29 117 166 sics through activities precious time. Number of employees Women 6 7 9 22 such as talks from guest Managerial Regular Average Average Breakdown staff* employees Total ( service ) ( age ) leaving company speakers and role-playing Total 26 36 126 188 exercises, enabling them Initiatives to Reduce Working Hours Men 1,187 2,811 3,998 19.79 years 42.53 years Men 2.6% 1.5% 11.8% 4.5% to improve their knowl- Having established an exploratory committee on reducing working Women 16 434 450 13.38 years 42.50 years Turnover Women 6.9% 2.8% 17.6% 5.7% edge and skills in han- hours, consisting of both management and employees, we are Total 1,203 3,245 4,448 18.77 years 42.52 years Total 3.1% 1.6% 12.1% 4.6% dling consultations. * Percentage of women in management positions: 1.30% Sexual harassment advisory training working to reduce out-of-hours work and encourage employees to take paid leave, in line with actual operations at each of our facilities.

51 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 52 Material Issues 3 Preventing Global Warming

51 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 52 Material Issues 4 Occupational Health and Safety Creating Safe, Pleasant Working Environments

We take the ﬁre and explosion that occurred at our Yokkaichi Plant in January 2014 extremely seriously, and are joining forces as a group to create working environments that are safer, more secure and as pleasant as possible, both mentally and physically.

 Framework We have also been working to step up management of hazardous substances (poisonous substances, toxic substances, Basic Approach Corporate Improving Ability to Identify Operating Risks Internal Human Production Corporate Audit Dept. chemicals) and exposure prevention measures, with an eye to We are committed to promoting health and safety activities, based Resources Dept. Engineering Dept. We continue to provide education in risk assessment and practical Safety Safety Safety introducing mandatory chemical risk assessments in line with revi- on our underlying philosophy of ensuring safety and protecting Coordinators Coordinators Coordinators Labor hazard simulation training, to enable operators to establish an union sions to legislation in June 2014. people’s health in everything that we do. We have learnt some Safety & Health Dept. accurate perception of risks as they go about their jobs. We also crucial lessons from the ﬁre and explosion that occurred at our devise special measures in each workplace and implement Mental health care In-house Business Corporate Research Yokkaichi Plant in January 2014, and are working hard to companies units & Development Dept. Divisions initiatives designed to make operators aware of hazard points We continually provide mental healthcare training as a form of Safety Safety Safety Safety strengthen frameworks and to further improve standards of safety Coordinators Coordinators Coordinators Coordinators before they commence operations, through shift-change meetings primary preventive care for mental health issues. As part of management on a groupwide scale for instance, or by using “hazard prediction cards.” “line-care” training for managing personnel, clinical psychologists

Directly from Head Office are scheduled to visit all of our facilities over a Companywide Basic Policy on Health and Safety Management managed facilities Group Safety Meetings (New) (including Central companies (Individual monthly two-year period. In terms of “self-care” training meanwhile, we Research Institute) meetings at head office) Preventing Occupational Accidents select members of staff at each facility to undergo training and ❶ We will carry out health and safety activities based on full participation Plant A Company X Company Y Companywide Zero oversee activities in the capacity of instructor. We also provide from all employees, underpinned by leadership and initiative from the Health & Safety Health & Safety Health & Safety President and other managing personnel. Coordinators Coordinators Coordinators Accident Working Group Carrying out operations safely mental health training as part of our global human resource and ❷ We will ensure that all employees comply with the Industrial Safety and Safety Supervisor We have revised operating standards, procedures and manuals Group Safety Meeting position-specific training programs, in an effort to prevent employ- Health Act and other applicable legislation, manuals and operating Safety Instructor Company X Company Y (revisions of qualitative expressions, clarification of objective and procedures, and establish a workplace culture whereby everyone follows the Plant A Plant A ees from experiencing mental health issues. By way of secondary Group Health & Safety rules and ensures that others do too. Plant B Health & Safety Health & Safety specific criteria for making decisions, etc.) in an effort to reinforce Coordinators Coordinators Coordinator Meeting and tertiary preventive care, we continue to offer meetings and ❸ We will make every effort to create pleasant workplaces that are healthy for Health & Safety Coordinators Safety Supervisor Safety Instructor clear safety instructions. We are currently in the process of expand- consultations with industrial physicians, health visitors, nurses and both body and mind, for all employees, through activities aimed at creating Group Safety Instructor Safety Instructor Safety Instructor Meeting (expanded) ing revisions to include irregular as well as regular operations. Occupational Health and Safety open workplaces and promoting health. clinical psychologists at each of our facilities, as well as using ❹ We will take preventive measures in accordance with Ministry of Health, We are also working to improve workplace patrols, by providing external back-to-work programs to enable employees to Labour and Welfare guidelines on the prevention of work-related traffic support for activities carried out by Safety Instructors and manag- 4 accidents and improve road etiquette amongst all employees, in order to reintegrate smoothly into their jobs and prevent them from having eliminate traffic accidents based on our commitment to promoting road ing personnel. As well as taking every opportunity to carry out to take further time off. Clinical psychologists (three) based at safety activities as an example to society as a whole. Priorities patrols, including patrol activities during health week and safety Head Office also offer consultations and advice at other facilities, week, we are working to further reinforce educational warnings including group companies, and provide psychological care for Every year we carry out health and safety activities with the aim of when employees are found to be in breach of regulations. employees at facilities where serious accidents have occurred. achieving “zero accidents,” in accordance with our annual Framework companywide safety and health management priorities. In fiscal Improving skills We are working to improve the contents of position-specific safety Our safety management framework revolves around the Safety & 2015, we set out the priorities outlined below. We have a checking education and continue to implement a range of educational Promoting Health and Safety Health Department (restructured from the Occupational Safety & system in place to ensure that our activities are effective, based programs, including specialist education overseen by external Health Department in March 2014 in an effort to reinforce around workplace audits, inter-workplace audits and third-party Management at Affiliated Companies instructors. capabilities and authority). We appoint Safety Coordinators at all audits, and to enable us to keep on making improvements. When instructing affiliated companies to carry out operations, we major corporate divisions and at in-house companies, and assign Improving equipment and procedural safety inform them of the contents of the relevant operations and provide  Companywide Safety and Health Management Priorities (FY2015) Health & Safety Coordinators and Safety Instructors (and Safety We are working to reinforce practical hazard simulation training aimed them with clear safety instructions. We also hold cooperative Supervisors if necessary) to work in each production facility, tasked Priority initiatives • Organize classes on subjects such as risk assessment and at improving sensitivity to hazards, in an effort to eliminate accidents safety meetings within the affiliated company’s organization and

Improve ability to hazard prediction, actively encourage employees to undergo Environments Working Pleasant Creating Safe, with the role of promoting health and safety activities. identify operating practical hazard simulation training , and make use of tools in the workplace and improve working conditions even further. make every effort to raise awareness of health and safety manage- The Safety & Health Department holds monthly Company risks such as “near misses.” ment. Safety Meetings with each of our in-house companies. Meetings 1. Prevent ① Carry out operations safely include monthly reports from relevant manufacturing facilities and occupational • Clearly reinforce safe operating Creating Mentally and Physically group companies, and provide an opportunity to share information accidents instructions • Check compliance with operating Pleasant Workplaces New Groupwide Zero Accident Project with in-house and group companies, as well as giving detailed procedures and safety instructions advice and following up on previous initiatives. through patrols carried out by Safety Improving health systems Having launched a comprehensive review of our previous “zero Instructors and managing personnel In order to promote activities on a groupwide scale, the Safety Healthy employees are an essential resource for any company. That accident” activities in April 2014, we are now rolling out our new ② Improve skills is our attitude to health management. In an effort to improve “Zero Accident Project” in an effort to tackle accidents from a new & Health Department organizes Group Safety Meetings attended Ongoing • Expand, evaluate and improve health by the heads of safety departments from group companies, and initiatives and safety training health systems, we met and consulted with industrial physicians angle and extend activities to include consolidated group compa- Implement an throughout the company, and have established companywide nies. also Group Health & Safety Coordinator Meetings to enable Health effective occupational ③ Improve equipment and procedural & Safety Coordinators to share information and exchange opin- health and safety safety criteria and standards for regular health checks and other As part of this project, we have been implementing the follow- management system • Address residual risks based on the work-related measures. As a result, we are now able to implement ing initiatives. ions. Initiatives such as these help to strengthen cooperation results of risk assessments, and take health management in line with the same standards throughout within the Group. steps to ensure machine safety • Full safety inspections for operating procedures the company. Since April 2015 we have increased the number of To develop initiatives in unison between labor and manage- 2. Create ① Step up companywide mental We have checked operating procedures for approximately 15,000 mentally and healthcare initiatives health visitors at Head Ofﬁce in an effort to improve health ment, we also hold meetings of our Zero Accident Committee high-risk operations at manufacturing facilities, including group twice a year. Meetings are attended by representatives from the physically ② Continue to improve working management for all employees, through activities such as visiting pleasant environments in order to prevent companies, and found 6,800 procedures that needed revising. We and providing health advice at facilities that do not have a perma- company and the labor union, who discuss how best to proceed workplaces work-related diseases, and to maintain completed all necessary revisions by March 2015. with measures to eliminate accidents. and improve Employees’ health nent member of staff responsible for industrial health.

53 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 54 Material Issues 4 Occupational Health and Safety Creating Safe, Pleasant Working Environments

53 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 54 Material Issues 4 Creating Safe, Pleasant Working Environments

• Assigning Safety Instructors and Safety Supervisors to group Safety Declaration Day initiatives companies Safety Record Initiatives to Prevent a Recurrence of the We have designated January 9 as Safety Declaration Day, in an Having previously only assigned Safety Instructors to our own effort to preserve the lessons learnt from this accident for the Although the total number of employees involved in accidents has Explosion and Fire Accident at the manufacturing facilities, in May 2014 we started expanding future, and to underline our determination to prevent any serious remained around the same level over the last three years, our Yokkaichi Plant activities to include manufacturing facilities operated by group accidents from happening again. safety record in 2014 shows that 10 employees were involved in companies. We have also assigned Safety Supervisors to assist For Preventing recurrence On January 9, 2015, we officially unveiled the Safety Monument accidents resulting in lost days or fatalities (compared to four last with improvements at facilities where serious accidents have On January 9, 2014, an explosion and fire occurred at our we have built at the Yokkaichi Plant, and held a memorial year), with three of those sadly losing their lives due to a serious occurred. Yokkaichi Plant. This was a major accident in which five employees ceremony to honor the first anniversary of the passing of those accident (totals are based on calendar years and therefore include from Mitsubishi Materials and a partner company tragically lost who died in the accident. At 2:05 p.m., the time of the accident, • Hiring outside consultants to oversee safety diagnostics for the accident at the Yokkaichi Plant). their lives, and a further 13 employees were injured. We would like we paused for a moment of silence, as all Mitsubishi Materials and facilities and equipment In terms of our safety record at group companies in 2014 mean- to express our sorrow for the people who lost their lives in the group company employees remembered their commitment to We hired consultants specializing in areas such as occupational while, 17 employees were involved in accidents requiring them to accident and extend our sincerest condolences to the bereaved safety. safety and occupational health in order to make improvements to take leave, with 45 employees involved in accidents not requiring families. We would also like to convey our sincerest apologies once unsafe equipment, facilities and procedures at individual facilities, them to take leave. The frequency rate for accidents was 0.84 (23 again for the tremendous anxiety and inconvenience caused by the and also started carrying out health and safety diagnostics at all major group companies, based on calendar years). accident, especially to those living in the surrounding area, the facilities in January 2015.  Number of Accidents Involving Employees (Mitsubishi Materials)★ authorities, and our customers and shareholders.

• Implementing award and warning schemes Accidents requiring Accidents not requiring Frequency Rate We take the gravity of this accident seriously and are resolutely In addition to our existing warning scheme at individual facilities, employees to take leave employees to take leave determined that nothing like this will ever happen again. To ensure we have now added an award scheme in an effort to eliminate Frequency rate for the Frequency rate across that, we are implementing a range of companywide preventive manufacturing sector all industries Occupational Health and Safety [Number of accidents resulting from breaches of regulations, and to establish employees injured] [Frequency Rate] initiatives. 1.95 1.90 and improve safety awareness. Following a three-month prelimi- 1.83 1.75 2.0 4 80 1.62 1.61 1.62 1.59 1.58 1.66 Recurrence preventive measures in heat exchanger nary period, we began rolling out schemes to all facilities, including 1.5 1.09 1.12 1.01 1.02 0.99 0.98 1.05 1.00 0.94 1.06 maintenance operations those operated by group companies, in January 2015. 1.0 60 0.98 1.14 The accident occurred during the process of opening and cleaning As part of the same project, we have also been working to 0.74 0.93 0.5 48 0.51 0.63 0.61 0.63 a heat exchanger that had been removed from the production line. 48 0.39 improve safety from both a tangible and intangible standpoint, in 41 0.18 0.0 Safety Monument 40 36 To ensure the safety of heat exchanger maintenance operations, areas such as disaster prevention measures and building safety. As 33 33 29 27 28 we have installed a dedicated cleaning station for heat exchangers we have not yet achieved our initial objective, activities are cur- 26 Implementing the Yokkaichi Plant Safety Culture (equipment maintenance station) as a measure to prevent a rently still ongoing. 20 Rebuilding Project recurrence. The equipment maintenance station is equipped with We felt that we need to implement fundamental improvement 0 protective walls in case of emergencies and enables heat exchang- 05 06 07 08 09 10 11 12 13 14 measures over a long-term timeframe, in terms of our safety ers to be opened remotely. There is also specialist device for ＊Figures are based on calendar years and do not include minor accidents infrastructure (education, passing on skills) and safety culture cleaning and removing deposits from inside heat exchangers. (sensitivity, balance between responsibility and authority, sharing A number of heat exchangers have been safely cleaned since the safety-first values). That is why we launched the Yokkaichi Plant VOICE station was completed in December 2014. In February 2015, we The growth of the Mitsubishi Materials Group depends on keeping all of our employees and Safety Culture Rebuilding Project in May 2014, and have continued even organized a tour for members of a local resident’s association. their families safe and healthy to plan and implement improvement measures ever since. Major Environments Working Pleasant Creating Safe, Reinforcing safety management accomplishments as a result of these activities include the For over 140 years now, dating back to the days when Tsukumo Shokai, the company set up by Mitsubishi Group founder Yataro We have done risk assessments on working conditions and following. Iwasaki, first entered the mining industry, generations of employees and their families have continued to dedicate themselves to procedures based on new knowledge of the substance that caused 1. Set out a vision for the Yokkaichi Plant: “We will create a the Mitsubishi Materials Group, sharing with us their dreams, inspiration, smiling faces and integrity across over 20 countries world- the accident, discovered during investigations into the accident. If plant that is trusted by everyone, with the aim of upgrading wide. we discover any further new insight into fires and explosion risks Having grown into a corporate group with over 23,000 employees on a consolidated basis, we keep on striving to achieve ‘zero accidents’ to ‘zero danger’” in the future, we will perform additional risk assessments. even greater things in the future. All of that depends on our employees and their families however, and on having workplaces 2. Formulated a 10 articles of behavior criteria for Yokkaichi that keep them safe, secure and healthy, both mentally and physically, and that provide rewarding work. Having made improvements to standard operating procedures, Plant Employees Here at the Safety & Health Department, we have a central role to play in achieving that, and in promoting occupational health to make them as objective and specific as possible, and classified 3. Established systems and a curriculum for a more systematic and safety based on our companywide health and safety policy. That is why we keep a close eye on actual conditions in actual work- procedures according to the degree of danger involved (potential approach to education Masato Koide places at all times, so that we can share accurate quantitative data with management, and incorporate that into management policy impact), we have conducted a comprehensive inspection of all Executive Officer quickly and precisely. In the future, we intend to follow-up on this policy so that it translates into more proactive, independent activi- 4. Established a dedicated process department to share techni- General Manager, Safety & ties in individual workplaces. standard operating procedures. Health Dept. cal information, etc. Promoting occupational health and safety along these lines helps to create honest, trusting and open human relationships We are also working to reinforce safety management systems 5. Revised plant organizational structure in order to strengthen whereby employees in every workplace respect one another’s hopes and dreams, and share in the joys of growing together. I and mechanisms, through measures such as re-training employees safety management capabilities firmly believe that it also helps to establish the 5Ss (seiri tidiness, seiton orderliness, seiso cleanliness, seiketsu standardization, based on a new educational curriculum and rebuilding the plant’s 6. Established framework for continuous improvements, in shitsuke discipline), while creating an atmosphere in which the slightest risk or irregularity is quickly spotted so that improve- Safety and Health Management System so that Head Office is ments can be made, and fostering a culture of safety. I believe that achieving this is our way of thanking and honoring all of order to foster a culture of safety our predecessors who have gone before us, as part of the Mitsubishi Materials Group. more actively involved, and will continue to make ongoing improvements based on the PDCA cycle.

55 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 56 Material Issues 4 Creating Safe, Pleasant Working Environments

55 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 56 Material Issues 5 Responsibility throughout the value chain Responsible Procurement of Raw Materials

Working in accordance with our CSR Procurement Guidelines, we procure raw materials via a global supply chain, with the assistance of countless suppliers. As part of our procurement activities, we also pay close attention to issues such as conﬂict minerals and the impact that our overseas mining development operations have on human rights and the local environment.

Metals Company: Outline of CSR Investment Standards Metals Company: Outline of CSR Procurement Standards

[Protection of basic human rights] [Continual improvement of environmental performance] Protect the basic human rights of people impacted by our business • Introduce and implement environmental management systems focusing operations. Consult with stakeholders regarding local community issues. on continual improvement. Basic Approach Initiatives as part of Raw Material Eliminate any involvement, either direct or indirect, with militia or other • Reduce negative environmental impact from mine development and armed groups in areas of conflict where there are concerns regarding operation. As a comprehensive materials manufacturer, we work in partner- Procurement from Mines human rights violations. ship with stakeholders throughout the supply chain and rely on • Take into account protected natural areas and protect biodiversity. Raw Material Procurement Initiatives [Mining and protected areas] • Consult with stakeholders regarding environmental issues. assistance from a wide range of suppliers in order to procure the Given that we procure large quantities of natural resources from Identify and evaluate impact on cultural and natural heritage, and risks to raw materials we need. We aim to build close relationships with all around the world to use as raw materials, we pay particular biodiversity at every stage of our business. Develop and implement [Continual improvement of occupational health and safety] of our suppliers when procuring materials meanwhile, ensuring attention to the countries and regions that produce and supply mitigation measures. • Introduce health and safety management systems focusing on continual that all transactions are fair, avoid corruption, comply with the law, improvement. those materials. We attach the utmost importance to sustainable [Mining and indigenous people] • Protect employees and contractors from occupational accidents. and take into account issues such as human rights. development initiatives, focusing on areas such as environmental Understand and respect the society, economy, environment, culture and Implement disease prevention measures including local communities. preservation, the human rights of local residents, and employment rights of indigenous people. Conduct social impact assessments with regard to indigenous people and provide appropriate compensation. and labor issues. [Protection of basic human rights] Formulating Procurement & Logistics • Prevent forced and child labor. CSR Requirements for the Procurement of Materials [Relationship with the local community] Verify if there are any disputes or lawsuits with the local community. • Eliminate harassment and discrimination. Division CSR Procurement Guidelines from Overseas Mines, etc. Engage in consultation and dialogue to explain business plans. • Avoid forced resettlement, or provide compensation. As Mitsubishi Materials is a non-operator that does not operate We formulate green procurement guidelines that are suitable for • Protect indigenous people. any mines directly, we procure the majority of our copper ore from [Environmental preservation] each manufacturing facility, and are constantly working to ensure Conduct environmental impact assessments (EIA) and obtain appropriate • Manage and record complaints and disputes with stakeholders. overseas mines in which we invest. We have nonetheless signed full compliance with regulations governing hazardous substances permits. Set out specific policies to reduce the environmental impact of • Eliminate any involvement, either direct or indirect, with militia or other contained in our products. In an effort to reinforce our organiza- up to the International Council on Mining and Metals (ICMM⇒ mine development and operation. armed groups in areas of conflict where there are concerns regarding tional capabilities with regard to CSR priorities, including P.66 ) and are committed to fulfilling our responsibilities as a human rights violations. company engaging in global procurement activities. [Mineral resources and economic development] respecting human rights, ensuring health and safety, and preserv- Contribute to sustainable economic development at the regional and ing the environment, we formulated and introduced a set of Consideration for local communities, including human national level. Procurement & Logistics Division CSR Procurement Guidelines in rights and the environment June 2009. Our W E B online guidelines meanwhile consist of a

If we have interests in a mine over and above a certain scale, we chain Responsibility throughout the value Basic Procurement Policy, which clearly sets out the division’s assign members of staff and go out of our way to engage in dialog Metals Company (gold and tin initiatives) Establishing a shared awareness of human rights issues responsibilities, and our CSR Procurement Standards, which we with local residents and members of the local community, through Our Metals Company has pledged its support for a campaign to throughout the supply chain and strengthening 5 require our suppliers to comply with. advisory committees for example. ensure the transparent flow of funds in relation to mineral companywide measures ＊ We are currently in the process of explaining our guidelines and Our Metals Company meanwhile makes every effort to monitor resources, which the EITI 1 has been promoting since June 2011. Establishing a fundamental understanding of human rights issues requesting compliance, starting with major suppliers whom we conditions at its suppliers, through measures such as implement- Having been working to tackle the issue of conflict minerals throughout the supply chain is key to tackling this issue. We are ＊ have signed basic business contracts. We have provided explana- ing standards for CSR procurement and for loans and investments, since 2012, we also obtained certification from the LBMA 2 in therefore working to establish a stronger, more wide-ranging tions to a total of 645 companies so far (as of fiscal 2015). With and conducting regular surveys, and advises mine operators to August 2013, confirming that we use conflict-free minerals in shared awareness at all levels throughout the Group, through ＊ interest in CSR on the increase, as evidenced by the recent focus make improvements if necessary. We are determined to reduce the our gold products. In February 2014, we obtained CFS 3 certifi- initiatives such as seminars for management staff and CSR training on the issue of conflict minerals, we intend to continue with initia- environmental impact throughout our global supply chain and are cation from the EICC, indicating that all of the tin we use is for employees, including those at group companies. tives such as these in the future. constantly working to ensure that we are in no way complicit in conflict-free. Data Book P.9 human rights violations. Data Book P.18,19 Advanced Materials & Tools Company VOICE Procurement & Logistics Division CSR Procurement Guidelines Obtaining Certification for Conflict-Free (Tungsten initiatives) Tungsten Group company Japan New Metals Co., Ltd., whose operations Basic Procurement Policy Initiatives in Response to the Issue of include refining tungsten, has been calling on suppliers to obtain 1. Open door/fair trade More than 80% of the world’s tungsten Responsible Procurement of Raw Materials Conflict Minerals external certification for the use of conflict-free minerals, through 2. Compliance with legislation and corporate ethics raw materials are currently produced in activities such as going out to visit suppliers in China in person. 3. Health and safety, environmental preservation and The Dodd-Frank Wall Street Reform and Consumer Protection Act China. We procure a large percentage of measures to combat global warming Japan New Metals has also been working to secure certification our own raw materials from China too. Hav- came into effect in the US in July 2010, in an effort to prevent ing explained the spirit of the legislation 4. Respect for human rights itself, and in December 2014 obtained CFS certification that all of minerals mined in the conflict-stricken Democratic Republic of in the US to smelters and refineries that the tungsten it uses is conflict-free. 5. Information security Congo (DRC) or its neighboring countries from being used to fund we deal with in China and dedicated time Basic CSR Procurement Standards the activities of armed groups responsible for human rights to ensuring their understanding, we have 1. Respect for human rights violations and other acts of violence. The act classifies gold, tin, Akira Kawaguchi repeatedly emphasized the importance of Director and Manager, initiatives throughout the supply chain and 2. Compliance with legislation and corporate ethics tantalum and tungsten as “conflict minerals,” and requires all Business Department Japan New Metals Co., Ltd. have managed to get suppliers on board. 3. Health and safety companies listed in the US to disclose whether their products You can’t form relationships with raw 4. Environmental preservation contain such minerals, along with details of producing countries. material suppliers overnight. They are the result of trusting relationships 5. Information security ＊1 Extractive Industries Transparency Initiative (EITI) http://eiti.org/ As our smelting and refining operations involve three of these ＊2 The London Bullion Market Association (LBMA) http://www.lbma.org.uk/responsible-gold built up by our predecessors. We are determined to keep on maintaining 6. Ensuring product quality and safety ＊ minerals – gold, tin and tungsten – we are stepping up initiatives 3 Conflict-Free Smelter (CFS) Program, an external certification scheme put forward by the relationships with our suppliers in the future. Electronics Industry Citizenship Coalition (EICC) http://www.eiccoalition.org/ in this area, and in 2013 published our companywide policy on conflict minerals on our website. WEB

57 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 58 Material Issues 5 Responsibility throughout the value chain Responsible Procurement of Raw Materials

Metals Company: Outline of CSR Investment Standards Metals Company: Outline of CSR Procurement Standards

57 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 58 Material Issues 5 Responsibility throughout the value chain Product Quality and Safety

We have formulated a companywide quality policy, and carry out companywide quality control and assurance activities based on quality management systems in accordance with ISO 9001, in order to provide superior quality products that our customers can use with conﬁdence.

Quality Improvement Activities at Overseas Ensuring Safety in Transit Quality Control and Companywide Manufacturing Facilities Product Safety We make every effort to guarantee safety when transporting Our Advanced Materials & Tools Company has 11 overseas products that require additional safety measures in transit, such as Quality Activities As a manufacturer, we are committed to providing our customers manufacturing facilities, which manufacture high quality products sulfuric acid. Specific measures include (1) avoiding contact with with safe, high quality products. We therefore implement a range in conjunction with our domestic facilities. PT. MMC Metal Fabrica- other substances, (2) using protective equipment when loading and Quality Control and Assurance Systems of quality and safety initiatives, as a precautionary approach and tion in Indonesia for instance has three plants, manufacturing unloading products, (3) preventing leaks or dispersal from contain- We are committed to establishing a comprehensive quality to ensure compliance with the law and other applicable regula- assembled special materials, cutting tools and automotive sintered ers, and (4) providing drivers with SDS clearly outlining measures in assurance system, covering everything from the design and tions. development stages through to manufacturing and shipping, and components, and has established a robust cooperative framework the event of an accident. ensuring that our products are safe and reliable, in accordance with domestic facilities covering areas such as equipment mainte- Impact Assessments at the Development and Prototype Thanks to all of the above initiatives, there were no breaches of with our Code of Conduct. With that in mind, we have set out a nance, production technology and inspection standards. Local Stages legislation in relation to product safety or the provision of products companywide quality policy with an emphasis on supplying employees are already taking the initiative in terms of activities such We carry out a Design Review during R&D, a process we call RDR, and services during fiscal 2015. first-rate products that guarantee customer satisfaction. We also as holding improvement meetings and reviewing quality control at four key stages , when exploring areas of R&D, producing promote companywide quality activities based on the principles of mechanisms. Their desire to acquire new skills is proving to be a functional and product prototypes, and commercializing products. quality control and quality assurance outlined under the ISO 9001 driving force behind quality improvements. We remain committed We meticulously examine all of our products from the very standard for quality management systems (QMS). to strengthening cooperation between facilities throughout the beginning, including checking for the use of harmful chemical Safety Management for Cement We have set up a Quality Committee consisting of quality liaison Mitsubishi Materials Group, so that we can grow together and substances, guaranteeing that products meet customers’ require- Products staff from the Corporate Production Engineering Department’s establish internationally competitive manufacturing facilities. ments and ensuring legal compliance, and make sure that product safety is always our top priority during development. In accordance with the “interim policy on handling water and Quality Management Group and from eight other departments, sewage treatment by-products in which radioactive substances including in-house companies. At its quarterly meetings, the com- Controls on Chemical Substances Contained in our are detected” issued by the Ministry of Land, Infrastructure and mittee receives progress reports on quality activities at group and Products Transport Nuclear Emergency Response Headquarters on June in-house companies, carries out reviews and shares information, We have formulated a set of regulations for the control of hazard- 16, 2011, we manage all shipments of cement to ensure that in an effort to prevent quality-related issues from arising. ous substances contained in our products, and continue to they clear standards for radioactive concentration (the level at reinforce management and ensure legal compliance in relation to which the radioactive concentration is significantly lower than Quality Meetings natural radiation levels and poses no risk to human health, or chain Responsibility throughout the value chemical substances contained in our products. We successfully In order to follow up on issues raised by the Quality Committee, the 100Bq/kg in the case of cement). completed registration of four substances covered under REACH Quality Management Group appoints Quality Management As there is a conceivable risk of radioactive materials becom- 5 ＊1 Supervisors at in-house companies and other divisions, and regulations by June 2015, and intend to continue with the Staff from Japan providing guidance on improvements on the shop floor ing mixed in with sewage sludge, one of the raw materials used organizes regular quality meetings, so as to keep track of the latest registration procedure in the future. We have also completed in cement, we publish radioactive concentration measurements ＊2 developments. It also arranges visits to 27 facilities, including 12 Quality Control throughout the Supply Chain revisions to labels and SDS under the new CLP Regulation , and for cement manufactured at our Yokoze Plant, Iwate Plant and group companies engaged in priority management, to check on (Mitsubishi Materials Trading Corporation) submitted our 2014 notification for substances covered under the Aomori Plant on both the Mitsubishi Materials and Ube- ＊3 progress with quality management activities and gather informa- As part of our MJC jewelry brand, we carefully control the quality revised Chemical Substances Control Law in June 2015. Mitsubishi Cement websites. tion on successful initiatives, so that they can be rolled out to other of all items throughout the supply chain, from manufacturing raw We also provide group companies with the latest information No radioactive materials have been detected in cement manufactured at our Yokoze Plant or Aomori Plant since 2013. facilities. Other activities include providing information on revisions materials through to processing and distributing finished goods, in through Quality Committee meetings and quality meetings, and Cement manufactured at our Iwate Plant was found to have a affecting ISO 9001 and the latest chemical legislation. The Quality give them advice on compliance with all applicable legislation. order to provide customers with reliable products at reasonable radioactive concentration of no more than 10Bq/kg in 2013, and Product Quality and Safety Management Group also organizes seminars and internal auditor prices. ＊1 REACH (Registration, Evaluation, Authorization and Restriction of Chemicals): EU regulation that governs the registration, evaluation, authorization and restriction of chemicals no more than 5Bq/kg in 2014, indicating that it is below the re- training upon request via quality meetings, in an effort to support As well as addressing the issue of conflict diamonds based on manufactured within or imported into the EU. quired control standard. quality management system improvement activities. the Kimberley Process*, we have created our own Jewelry Quality ＊2 CLP Regulation: EU regulation on the Classification, Labeling, and Packaging of substances and mixtures Rule Book, covering matters such as com- ＊3 Revised Chemical Substances Control Law: Act on the Partial Revision of the Act on the pliance with the Washington Convention, Evaluation of Chemical Substances and Regulation of Their Manufacture, etc. metal allergy measures and traceability, Providing Safety Information and continue to raise awareness amongst Providing safety information on our own products is vitally our main suppliers (approx. 120 compa- important, to ensure product safety further along the supply chain. nies). We also organize regular quality We therefore attach SDS to Mitsubishi Materials products so as to meetings to ensure that suppliers are effectively disclose and convey information on chemical adhering to our quality rules, as part of substances. our activities aimed at improving trust and reliability throughout the supply chain. Jewelry Quality Rule Book

＊Introduced in Japan in January 2003, the Kimberley Process is an international certification scheme designed to combat illegal trade in rough diamonds, used to fund conflict. As well Quality meeting as preventing member countries (approx. 69) from importing or exporting stones that do not Publishing figures on online have a certificate of origin, it also enables consumers to ask for proof that the products they are purchasing from retailers do not contain conflict diamonds.

59 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 60 Material Issues 5 Responsibility throughout the value chain Product Quality and Safety

59 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 60 Material Issues 6 Stakeholder Communication Interaction with Stakeholders

One of the objectives outlined in our CSR Direction is to strengthen communication with stakeholders. As well as creating a wide range of opportunities for communication and striving to improve levels of mutual understanding, we also make every effort to incorporate stakeholder feedback into our management activities.

Basic Approach to Building Relationships with our Stakeholders and Key Means of Communication  Distribution of economic value added to stakeholders (FY2015, Mitsubishi Materials)★ In the interests of sustainable corporate management, we believe that communicating with our stakeholders is crucial if we are to reflect Distribution of Economic Value to their expectations and requirements in our business strategies and activities. Through the process of identifying material issues P.25 and Stakeholders Retained earnings Employees other such initiatives, our aim is to incorporate stakeholders’ perspectives into our management practices to a greater extent than ever 24,021 38,978 before. Striving to Adequately Distribute Economic Value As we continue to earn operating revenue and generate economic value added thanks to the involvement of our many and varied stakeholders, we believe that it is important to fulfill our social Added value responsibilities and adequately distribute that added value among (revenue – operating costs) our stakeholders. 89,278 Customers million yen Economic Value Added in Fiscal 2015 Revenue for Mitsubishi Materials in fiscal 2015 came to ¥844.3 Shareholders • Promotion and provision of products and services billion. That included proceeds from the sale of products and 9,173 Government Shareholders and • Customer Service, Telephone Technical Support Suppliers • Information on product safety and environmental services, dividends and other forms of non-operating income, and 12,893 Investors features General public • Sharing of opinions at exhibitions and other events extraordinary income. Operating costs, which consist primarily of 152 Creditors 4,061 • General Meeting of Shareholders, Engaging in business activities • Sharing opinions via meetings with major business payments to suppliers, totaled ¥755.0 billion. Executive Information Meetings with an emphasis on improving partners and suppliers After subtracting operating costs from our total revenue, the Details/ • Earnings announcements, presentations customer satisfaction • Assisting with disaster support activities Category Stakeholder (million yen) for investors Disclosing information as • Greater consideration for human rights and the amount of added value generated through our business activities method of calculation • Sharing of opinions with Socially environment at overseas mines based on CSR and when necessary, and Engaging in honest, came to ¥89.3 billion. Customers and Net sales, non-operating Responsible Investment (SRI) research fair trade and Investment Standards/CSR Procurement Guidelines Revenues 844,284 organizations/questionnaire responses engaging in dialogue • Cooperation in relation to promoting company suppliers income, extraordinary income collaboration • ESG meetings with institutional investors regarding management policy (CSR Procurement Guidelines, etc.) Distribution of Added Value Operating costs (cost of sales • Online and IR tools (shareholder • Cooperation in relation to promoting logistical and selling, general and newsletters, annual reports, etc.) efficiency, modal shift and recycling Personnel costs, which include statutory welfare expenses and Improving the value of pension contributions and represent the portion of revenue distrib- administrative costs, minus individual human resources Suppliers 755,005 deductions for personnel costs, Building trusting uted to our employees, came to ¥39.0 billion. tax and public charges, and relationships and Employees Working together donations) contributing to to tackle social In the meantime, we distributed a total of ¥4.1 billion to finan- development issues cial institutions and other creditors, in the form of interest on Personnel costs (including • Questionnaires and surveys to • Labor conferences Employees 38,978 statutory welfare expenses and gather opinions • Town meetings to promote borrowings. pension contributions) Local Communities Industry/Economic Payments • Self-statement system diversity We distribute value to society and local communities through • Internal Contact Office, hotlines • Group newsletters Organizations Creditors 4,061 Interest expense the government and through our own social contribution activities. Taxes (corporate income tax, and Communication Stakeholder • Community oriented social contribution Mitsubishi Materials Group • Initiatives through organizations such as the Japan Government 12,893 other taxes and public charges Cement Association, Japan Mining Industry We paid ¥12.9 billion to the government this year, as the combined activities liable as expenses) 6 • Voluntary activities by employees Association and Japan Geothermal Association total of corporate income tax plus other taxes and public charges • Sharing opinions via meetings with local • Working with cooperative corporate organizations General public 152 Donations, etc.* residents in development areas, etc. in order to make strategic urban mines a reality liable as expenses. We also gave around ¥200 million back to the • Activities via the International Council on Mining community in the form of social contribution activities, including Shareholders 9,173 Cash dividends paid Engaging in dialogue and Maintaining close, healthy and Metals (ICMM) Net income minus cash relations and assisting with • Taking part in a wide range of activities via donations, lending our facilities to the public and providing Retained earnings 24,021 dividends paid cooperation in response Keidanren (Japan Business Federation) to public demand policies employees’ services. * Calculated based on the value of items such as donated goods, public lending of our facilities Cash dividends, which represent the value that we distribute to and the provision of employees’ services as well as cash donations, as specified by Nippon our shareholders (companies and individuals, in Japan and over- Keidanren. seas), came to a total of ¥9.2 billion. Pension Contributions Retained earnings to cover investment and contingencies for Obligations relating to unfunded lump-sum severance payment

Non-Profit Organizations Government Interaction with Stakeholders (educational/research institutions, NGOs/NPOs) the future meanwhile totaled ¥24.0 billion. plans and funded defined benefit pension plans totaled ¥33.2 Engaging in wide-ranging billion and ¥37.8 billion respectively. ¥59.2 billion of this total was dialogue and collaboration in Contributing to Local Communities as part of our • Support for NPO activities, sharing • Participation in national projects through the paid out in the form of pension assets to outside funds (coverage: opinions via meetings order to protect the environment provision of technology, etc. Overseas Operations • Assistance with emergency relief activities • Participation in environmental measures such as Whenever we engage in business activities overseas, we make 83.45%). A further ¥9.1 billion was registered as expenses in the • Stakeholder Meetings the project of the Eco Town Program. • Responses to questionnaires, surveys, etc. • Panels and study groups with government every effort to understand conditions in the relevant country and form of accrued retirement benefits, with the remaining ¥2.6 agencies the national identity of its people, so that we can integrate into the billion classed as unrecognized benefit obligations. We plan to local community as a corporate citizen. We re-invest money that amortize all unrecognized benefit obligations over the next ten Environment/Future Generations we make through our overseas operations back into the local years. • Engaging in dialogue and cooperation from various different community wherever possible, in order to continue growing our Financial Assistance from the Government perspectives in order to establish a recycling-oriented society business and contribute to the sustainable development of the • Disclosing information and engaging in dialogue in relation to We received ¥1.2 billion in grants, subsidies and other financial environmental preservation activities based on the local area. Environmental Management System (EMS) assistance from the government. The government does not hold • Ecosystem and environmental studies all over the world shares in Mitsubishi Materials or any of our group companies. • Promoting exchange in relation to sustainable management and operation of company-owned forests • Engaging in wide-ranging cooperation in relation to the development and use of environmental technologies 61 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 62 Material Issues 6 Stakeholder Communication Interaction with Stakeholders

Non-Profit Organizations Government Interaction with Stakeholders (educational/research institutions, NGOs/NPOs) the future meanwhile totaled ¥24.0 billion. plans and funded defined benefit pension plans totaled ¥33.2 Engaging in wide-ranging billion and ¥37.8 billion respectively. ¥59.2 billion of this total was dialogue and collaboration in Contributing to Local Communities as part of our • Support for NPO activities, sharing • Participation in national projects through the paid out in the form of pension assets to outside funds (coverage: opinions via meetings order to protect the environment provision of technology, etc. Overseas Operations • Assistance with emergency relief activities • Participation in environmental measures such as Whenever we engage in business activities overseas, we make 83.45%). A further ¥9.1 billion was registered as expenses in the • Stakeholder Meetings the project of the Eco Town Program. • Responses to questionnaires, surveys, etc. • Panels and study groups with government every effort to understand conditions in the relevant country and form of accrued retirement benefits, with the remaining ¥2.6 agencies the national identity of its people, so that we can integrate into the billion classed as unrecognized benefit obligations. We plan to local community as a corporate citizen. We re-invest money that amortize all unrecognized benefit obligations over the next ten Environment/Future Generations we make through our overseas operations back into the local years. • Engaging in dialogue and cooperation from various different community wherever possible, in order to continue growing our Financial Assistance from the Government perspectives in order to establish a recycling-oriented society business and contribute to the sustainable development of the • Disclosing information and engaging in dialogue in relation to We received ¥1.2 billion in grants, subsidies and other financial environmental preservation activities based on the local area. Environmental Management System (EMS) assistance from the government. The government does not hold • Ecosystem and environmental studies all over the world shares in Mitsubishi Materials or any of our group companies. • Promoting exchange in relation to sustainable management and operation of company-owned forests • Engaging in wide-ranging cooperation in relation to the development and use of environmental technologies 61 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 62 Material Material Issues Issues 6 Stakeholder Communication 6 Stakeholder Communication Dialogue with Shareholders and Investors Dialogue with Customers

We make every effort to ensure timely and appropriate disclosure, by means such as General Meetings of Shareholders, presenta- We make every effort to adequately disclose product information and maintain close communication with our customers to tion meetings and other IR tools, so that our shareholders and investors have a thorough understanding of our operations and improve levels of customer satisfaction (CS). We also use customers’ comments to help us improve the quality of our products continue to support us over the long term. and develop new products.

Aluminum Business: CS Activities Dialogue with Shareholders Dialogue with Investors and the Stock Market Adequate Disclosure of Product Group company Universal Can Corp. continues to develop a range of products designed to meet customers’ needs. General Meetings of Shareholders Meetings for Investors Information and Communication As well as meeting basic needs such as “easy to open, easy to We regard our Ordinary General Meeting of Shareholders as an We organize earnings information meetings for institutional In addition to sorting information on our wide range of products use” with its aluminum caps for aluminum bottles, it has also invaluable opportunity for management staff to talk directly with investors and securities analysts to coincide with our quarterly according to sector and publishing it in an easy to understand added color-producing agents to the sealant materials used on the shareholders. That is why we send out a convocation notice as earnings announcements. In addition to providing a breakdown of format via media such as our website and product leaflets, our interior in order to develop promotional caps that can be laser early as possible, and provide details on our website, so that our our earnings and explanations regarding matters such as manage- Corporate Marketing & Overseas Business Development Depart- printed with illustrations, QR codes and other detailed designs as shareholders have sufficient time to think about matters to be ment policy, we also accept questions and comments from ment also plays a crucial role in terms of two-way communication well as numbers and text. reported and resolved at the meeting. We have continued to participants so as to reflect their views in our IR activities via with our customers, acting as a one-stop shop providing them with These caps give customers more advertising space and make it expand our efforts to disclose information since 2012, by posting channels such as feedback to management. We also organize all the information they require and promptly dealing with possible to meet a wide range of needs such as printing multiple information on our website even earlier and adding new content facility tours on an ongoing basis and arrange interviews with inquiries. We always try to provide accurate information on our designs. While in development, this particular product was also to information sent out with our annual business report, including institutional investors and securities analysts at home and abroad. products and operations as part of our advertising and marketing highly acclaimed at the Cans of the Year Awards 2014, winning details of our policy regarding the determination of remuneration As exercises in active communication, such interviews enable us communication activities, in accordance with our Code of Silver in the Prototype category. and status of corporate governance. to clarify operating strategies and other aspects of our business Conduct, and take great care to avoid misleading our customers. As well as enabling shareholders to exercise their voting rights and engage in constructive exchanges of opinions. in writing or online, we also use an electronic voting platform for We began participating in institutional investors both in Japan and overseas. information meetings for Improving Customer Satisfaction In the General Meeting of Shareholders, we use slides and nar- individual investors in fiscal ration to help make the contents of our presentations easier to 2010, and are committed to Customer Satisfaction Surveys follow. We also publish shareholder voting figures for all resolu- maintaining an active IR We conduct customer satisfaction surveys as part of our quality tions immediately after the meeting, via channels such as our schedule and ensuring management activities at all Mitsubishi Materials facilities and Promotional caps website. adequate disclosure in the group companies. We take customers’ comments seriously and future, for the benefit of all make every effort to provide them with better quality products and Executive Information Meetings A presentation at this year’s executive information of our investors. meeting (President Takeuchi) services. Since fiscal 2004, we have invited shareholders to stay after the Developing Products through General Meeting of Shareholders for an executive information  IR Activities in Fiscal 2015 Metals: Meeting Customers’ Needs Dialog with Customers meeting. We strive to achieve customer satisfaction by providing products Description Number of times during At the executive information meeting in June 2014, senior man- fiscal 2015 and services that meet our customers’ needs. With more and more We organize exhibitions at our customers’ offices so that we can

meet our corporate customers in person and provide simple Communication Stakeholder agement staff gave a presentation outlining our operations. We Interviews with institutional investors 227 home appliances and electronic devices being recycled in recent Overseas IR visits (Europe, USA, Asia) 10 explanations outlining the performance and features of the Mitsubi- also used the meeting as a forum to enable attending shareholders years, in all corners of the world, we are focusing on processing shi Materials Group’s wide range of products. We once again held 6 Facility tours for institutional investors 7 to talk freely and openly to senior man- E-scrap to extract precious metals. Operations take place at our internal and external events for a number of leading companies in agement and other business managers Corporate information meetings for institutional investors 1 Naoshima Smelter & Refinery, which introduced a new online fiscal 2015, including manufacturers of vehicles, automotive parts, Earnings information meetings for individual investors 4 whilst looking at our products and system for customers in 2014, called “NEWS.” This has enabled electronics and home appliances. Such events give us access to invaluable comments and sugges- display panels. We will continue to us to process transactions quickly and smoothly online, from tions from our customers. Their recommendations help us refine our focus on promoting mutual communi- making appointments to bring in gold and silver through to ESG Meeting products, improve quality cation with our shareholders in the checking progress and payment details. and develop new prod- future. ucts. We will continue to Investors are increasingly taking into account non-financial initia- Advanced Materials & Tools: Customer Technical Communication at the executive tives in areas such as the environment, social and governance communicate with our information meeting D ialogue with Customers (ESG), as criteria for determining corporate value. At our Stake- Support Activities customers through exhibi- \ holder Meeting P.13 in February 2015, an expert suggested that At our Machining Technology Center, we provide various technical tions in the future, in an  Distribution of Shareholders we should provide more information about the social and qualita- support to help our customers use cutting tools correctly and effort to identify custom- tive value generated by our recycling businesses. With that in mind, ers’ needs. National and local governments Treasury stock efficiently. Services include organizing seminars to improve knowl- 0.01% 0.35% in July we held our first ever ESG meeting. edge of tools, offering cutting demonstrations and technical At an exhibition The meeting attracted even more interest from institutional Individuals and others services so that customers can use tools under the best possible 20.23% Financial institutions investors than expected. Participants were eager to exchange Distribution 33.69% opinions and gave glowing conditions, and running a toll-free advice line. We are dedicated of Shareholders feedback via questionnaires with maintaining direct communication with our customers at all Foreign corporations Financial instruments distributed afterwards. We times. business operators and individuals intend to continue with We believe that technical support activities such as these 26.29% 2.24% initiatives such as these in the Other corporations enable us resolve difficulties and issues facing our customers, and ＊ The total may not add up to 100% due to 17.18% future, in order to improve rounding up or down of individual figures. understanding and apprecia- to monitor and establish an accurate understanding of customers’

tion of our business activities. Providing an explanation at the ESG needs. This in turn enables us to focus on providing customers with Dialogue with Shareholders and Investo rs meeting (Senior Executive Ofﬁcer Kondo) quick, precise solutions that guarantee satisfaction.

63 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 64 Material Material Issues Issues 6 Stakeholder Communication 6 Stakeholder Communication Dialogue with Shareholders and Investors Dialogue with Customers

63 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 64 Material Issues 6 Stakeholder Communication Getting Involved in Society and the Community

We communicate with the local community and engage in a whole host of social contribution activities, making the most of the unique characteristics of the Mitsubishi Materials Group’s various facilities around the world. We also carry out a range of initia- Activities via the International Council on Mining and benefit is the fact that concrete uses cement, which can be tives in an effort to do our bit “For People, Society and the Earth”. Metals (ICMM) produced by processing various types of waste. Previously, the We have been a member of the International Council on Mining main issue with concrete paving was that it usually requires a and Metals (ICMM) since 2002. As an international organization curing period of around 14 days, meaning that it takes time for whose aim is to promote CSR throughout the global mining and roads to be opened to traffic. The JCA however has responded by metals industry, the ICMM places great importance on involving developing “1 DAY PAVE.” Not only does this revolutionary Keen to put the proceeds from these activities to good use and the CEOs of member companies in the decision making process. method of construction drastically shorten the curing period so The Mitsubishi Materials Group’s Social help the local community in some way, the plant marked the As such, communication between the President of the ICMM and that traffic can use roads the day after concrete has been laid, but completion of new local government offices at Sanda City Hall by Contribution and Communication Activities the CEOs of member companies is a top priority. In fact, informa- the technology involved is also capable of significantly reducing donating five rescue tion shared via this process is used by the the life cycle costs of paving compared to asphalt. In terms of The Mitsubishi Materials Group’s roots lie in mining. As community benches, which can also be ICMM to assist with its global measures. Mitsubishi Materials, we installed paving at our Yokoze Plant oriented activities form an essential part of mine management, we used as stretchers in an John Atherton from the ICMM visited (Saitama prefecture), Kyushu Plant (Fukuoka prefecture) and have always been focusing on the questions “what can we do for emergency. Japan in June 2014, as did Hannes Struy- Naoshima Smelter & Refinery (Kagawa prefecture) in fiscal 2014, the community?” and “what sort of role should we play”. That We are committed to weg, also from the ICMM, in May 2015. and at group company Chugoku Ryoko Co. Ltd. (Hiroshima Prefec- tradition lives on to this day, as the cornerstone of our social making an active contribu- Both visits provided invaluable opportu- ture) in fiscal 2015. Demonstration events have attracted large contribution and communication activities, throughout the Group. tion as a member of the local nities, in terms of discussing the ICMM’s numbers of local community in the future. Presenting rescue benches for use in an emergency Developing Human Resources for the Future recent activities and plans for the future, government officials, [Corporate Research & Development Department] Sharing the Joys of Sport with People with Disabilities and exchanging opinions regarding industry insiders and In conjunction with the Faculty of Science and Engineering at Waseda Activity in support of sports for people with disabilities changes in the environment surrounding other guests, indicat- th University, we organized the 7 Mitsubishi Materials-Waseda Univer- [Diaplaza] the mining and metals industry. ICMM pamphlet ing that there is sity Faculty of Science and Engineering Industrial-Academic Seminar In line with the spirit of the Special Olympics*, Diaplaza (Akita growing interest in Activities via the Japan Cement Association at the university’s Nishi-Waseda Campus. prefecture) engages in activities aimed at supporting people with concrete paving. We As a member of the Japan Cement Association (JCA), we are Revolving around the theme of cutting-edge applications for intellectual disabilities through sport at Akita Athletic Club. are planning to working together to promote concrete paving as a means of next generation sensor material technologies, the seminar was As well as providing its facilities free of charge for three sports install paving at our reducing environmental impact. Compared to asphalt, concrete based on a comprehensive agreement on industrial-academic – swimming, tennis and basketball – the company organizes an Iwate Plant and at paving has advantages such as reducing CO2 emissions by improv- cooperation signed in 2008, and featured four talks, including one average of two programs in each field every month, with help from Oita Mining Co. Ltd. ing vehicles’ fuel efficiency, and combating the heat island effect by ourselves. a team of volunteer staff that in fiscal 2016. Installing paving at Chugoku Ryoko Co. Ltd. by reducing the temperature of road surfaces. Another potential We intend to continue working includes coaches certified by the in cooperation with Waseda Uni- Special Olympics. Participants and versity, to help develop human their families get to share in the joys resources for the future of the of sport alongside volunteer staff, Main Recognition for the Mitsubishi Materials Group’s Activities materials industry and contribute Sharing information on the latest with many commenting how pleased to the development of the industry technologies through talks Interacting with people with  Main Awards and Commendations from Outside Organizations in Fiscal 2015 they have been to get involved. disabilities through tennis coaching as a whole. Recipient Awarding body or organization Details Stakeholder Communication Stakeholder * Established in the US in 1968 by Eunice Kennedy Shriver, the younger sister of the late 2014 Environmental Minister’s Award Activities aimed at preventing global warming, Putting the Results of Recycling to Good Use for the President John F. Kennedy, Special Olympics is an international organization whose Naoshima Smelter for Global Warming Prevention Activities by installing high efficiency equipment to save 6 goal is to provide sports training for people with intellectual disabilities and organize Minister of the Environment Local Community [Sanda Plant] & Refinery competitions for them to showcase their abilities. (implementation of countermeasures energy and using heat from E-scrap to reduce coal Spearheaded by employees and their families, our Sanda Plant and dissemination) consumption, and social contribution activities (Hyogo prefecture) has been actively promoting aluminum can Aomori Plant Japan Society of Civil Engineers Special Efforts to process and reuse waste from the Great Mitsubishi Materials Corp. Iwate Plant Japan Society of Civil Engineers collection and recycling activities since 2012. Award East Japan Earthquake Yokoze Plant • Long-distance BC (belt conveyor) management Limestone Association of Japan Special practices and work to replace horizontal 1BC belts In 2011, we introduced a scheme whereby all new employees take part in Higashitani Mine Limestone Association of Japan Getting New Employees Involved in Award • Efforts to improve grade of limestone being Social Contribution Activities some form of volunteer activity as part of their induction training. shipped Japan Environmental 2014 Awards for Resource Recirculation Mitsubishi Materials Corp. Eco-Business Division Development and demonstration of recycling Management Association for Technologies and Systems: Award for VOICE VOICE technology for neodymium magnets Helping to organize international Assisting with caving activities for local elementary Panasonic Eco Technology Kanto Co. Ltd. Industry Rare Metal Recycling exchange activities school children in Hiraodai Japan Association of Employers Contribution to the development of employment Universal Can Corporation Gifu Plant of Persons with Severe Certificate of appreciation facilities for persons with severe disabilities I took part in the Katsushika Interna- Located next to Higashitani Mine, Hirao- Disabilities tional Exchange Festival (Katsushika dai is one of few karst plateaus in CLEANBRIGHT® copper alloy with improved 2014 Otani Memorial Art Museum City, Tokyo), aimed at promoting mu- Japan. It is also the site of numerous un- Mitsubishi Shindoh Co. Ltd. Otani Memorial Art Museum resistance to discoloration, attractive external Award Getting Involved in Society and the Community tual understanding of foreign and derground caves (limestone caverns). As appearance and powerful antibacterial properties Japanese culture, in an organizational part of a program organized by Hiraodai support capacity. I got to meet people Countryside Park, we assisted with cav- Contribution to local community activities Portland Cement Association (Organizing plant tours, taking part in community Mitsubishi Cement Corporation Outreach Award from various different countries and ing activities for children from a local (USA) activities, supporting local schools, hospitals, welfare get a taste of intercultural exchange. I elementary school. As well as enabling funds, etc. Junya Fukuda work in customer sales, so it was a Higashitani Mine local children to get closer to nature, it National Employee Awards: Award for Mitsubishi Materials (From left) Kenta Asano*, MMC Electronic Materials Taiwan Co. Ltd. Electronic Materials & truly rewarding experience that made really made us appreciate the impor- Department of Labor, Taiwan Excellence in the Collective Agreement In recognition of revisions to labor agreements (company/union) Components Company me appreciate the tremendous poten- Shungo Takemura, tance of the local community in the con- Category Osaka Branch tial for interaction with a wide range Yuya Nagaya, Kota Fujimaki text of our business activities. of people. *Department correct as of September 2014

65 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 66 Material Issues 6 Stakeholder Communication Getting Involved in Society and the Community

65 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 66 Material Issues 7 Governance Corporate Governance and CSR Promotion Framework

We make every effort to reinforce corporate governance and promote CSR, in order to enhance corporate value and make an even greater contribution to society through fair business activities.

Auditing Framework aspects of CSR at Mitsubishi Materials and other group companies Corporate Governance We conduct internal audits, including at group companies, in order Reinforcing Governance at Overseas are also monitored via internal audits conducted by our Internal to check that our operations are being run effectively and Audit Department, and via joint audits. Decision-Making and Executive Framework Group Companies efficiently, and to verify the reliability of financial reports, the All important matters relating to our business are overseen and Items Discussed by the CSR Committee Each Year maintenance and effective use of assets, the status of risk Strengthening Governance through Information determined by the Board of Directors, which currently consists of As a rule, the CSR Committee meets four times a year, in January, management activities, and compliance with legislation, internal Sharing and Educational Activities nine directors in total, seven inside and two outside. As well as March, July and November, and primarily discusses the following regulations and other applicable standards. In terms of strengthening governance at overseas group compa- being the ideal size to enable us to make decisions quickly, we feel issues. In the event of serious compliance issues or other such We begin our basic internal auditing procedure by conducting nies, in fiscal 2015 we established Mitsubishi Materials Southeast that this is the right composition in terms of management objectiv- matters affecting the Mitsubishi Materials Group however, the documentary questionnaires across all facilities. We then select Asia Co. Ltd. as a new company tasked with reinforcing ity and transparency. We have also decided that this is an committee may hold meetings as and when necessary, irrespective facilities that are particularly susceptible to risks and provide governance in Southeast Asia. It will play a central role in strength- appropriate number of outside director, based on the total number of scheduled meetings. advice regarding remedial measures as quickly as possible. After a ening our business foundations throughout the region in the of directors and the roles they perform. certain period of time has passed, we carry out general audits to future, through reinforced governance. We also organize represen- Matters to be resolved by the Board of Directors are first Items Discussed by the CSR Committee Each Year check on operational performance after remedial measures have tative meetings for the heads of overseas facilities in three regions reviewed and discussed in detail by our Corporate Strategy Com- been taken. Documentary questionnaires also include evidence for – the Americas, East Asia and Southeast Asia – and have success- mittee, which is made up of President, Executive Vice Presidents, Jan. ❶ Summary report of accidents, compliance issues and other questions and details of remedial measures, to enable the facility fully established a level of groupwide awareness and a shared incidents occurred at group companies during the previous Managing Directors and Senior Executive Officers, in order to being audited to rectify issues itself. outlook across management at overseas subsidiaries. year make the decision-making process more efficient and effective. We also conduct specific themed audits, in order to focus on ❷ Summary of reports received by the Internal Contact Office We have also adopted an executive officer system and an Improving Internal Audits during the previous year (number and nature of reports) auditing activities in areas such as compliance with important legis- in-house company system in order to operate more flexibly and Since 2012, we have been working with local auditing companies lation. Combining these auditing techniques, we follow up on Mar. ❶ Basic policy for CSR activities for the following fiscal year, appropriately as an integrated business entity involved in Cement, and other such organizations to conduct audits at overseas group planned activities (including education, training and risk highlighted issues every six months, in an effort to make audits more Metals, Advanced Materials & Tools, Electronic Materials & Com- companies, taking into account legislation, customs and other management) and figures for the current fiscal year effective and enhance the corporate value of the Group as a whole. ponents. factors specific to each country. Based on the results, we have also ❷ Summary of findings from corporate ethics surveys completed by employees participating in education and  Internal Control compiled documentary questionnaire forms for each country, Policy regarding the determination of remuneration training activities Since establishing the Internal Control System Improvement factoring in different languages where necessary. Forms are We make it a basic policy to appropriately link the remuneration ❸ Summary report on Stakeholder Meetings Committee in January 2006, we have taken steps such as develop- already in use in China, Thailand and Indonesia, with plans to for Directors to corporate performance and performance of Jul. ❶ Breakdown of priority risks as part of risk management ing a set of basic principles for improving the Group’s internal conduct audits in the US in fiscal 2016. We will continue to take activities for the current fiscal year individual Directors. The remuneration for Directors is comprised control systems, and ensuring compliance with requirements to measures such as these to reinforce governance at overseas group ❷ Risk management performance evaluation for the previous of basic remuneration and bonuses (not paid to Non-Executive introduce internal control evaluation and disclosure systems in companies and other facilities in the future. fiscal year and progress report on measures in response to Directors ). priority risks relation to financial reporting, in an effort to ensure compliance Firstly, the amount of basic remuneration is determined in ❸ Outline of Corporate Social Responsibility Report with the Companies Act, the Financial Instruments and Exchange accordance with the title and performance of each Director. The Nov. ❶ Presentation of example CSR activities at Mitsubishi Materials Act and other relevant legislation, and to establish optimal internal CSR Promotion Framework portion of basic remuneration is paid as stock-based remuneration premises and group companies control systems for both Mitsubishi Materials and the Mitsubishi Report from the Environmental Management Panel (not paid to Outside Directors) and used for purchasing the In January 2005, we established a CSR Committee, chaired by the ❷ Materials Group. Company’s shares through the Company’s director shareholding President, and a dedicated CSR Department. In recognition of the Evaluations conducted during fiscal 2015 found our internal Governance association. The Company’s shares acquired based on the remu- need to address CSR throughout the Group, we also assign control systems in relation to financial reporting to be sufficient and  CSR Promotion Structure neration cannot be sold at least during each Director’s term of responsibility for CSR to the heads of each of our in-house divisions 7 effective, with no material weaknesses in disclosure identified. The office. This aims to link the remuneration to medium- and long- and group companies, and appoint CSR Managers and CSR results were then submitted in June 2015 in the form of an Internal Board of Directors term corporate performance. Supervisors lower down in each organization to oversee group- Control Report with the unqualified opinion of an auditing firm. Secondly, the amount of bonuses, as remuneration linked to wide CSR activities. Corporate Strategy Committee short-term corporate performance, is determined after the end of ■ Overview of the Corporate Governance Structure The CSR Committee, which is run by the CSR Department, the fiscal year by making as indicators consolidated net income meets four times a year in order to discuss policies relating to CSR CSR Committee General Meeting of Shareholders and ordinary income during the fiscal year and taking into consid- activities in general and planned activities for the current fiscal Compliance Panel eration performance of individual Directors. The bonuses can be Appointment/Dismissal Appointment/Dismissal Appointment/Dismissal year. The committee also receives and reviews reports relating to Risk Management Panel reduced or removed entirely depending on business conditions and Board of Directors Audit & Supervisory Board CSR in general, covering areas such as compliance throughout the Environmental Management Panel Management Operational and financial audits Information Security Panel the amount of dividends for the fiscal year. decision-making and oversight Mitsubishi Materials Group, reports submitted to the Internal The remuneration for Audit & Supervisory Board Members is set Audit & Supervisory Board Contact Office, and progress with risk management. In addition to Director CSR Department Director responsible Appointment/ Member Assistance Dept. in charge of CSR for personnel at an appropriate level based on discussions among them and is Dismissal Corporate the aforementioned promotion framework, we also have systems Strategy Committee Independent Accountants Internal Contact Office Evaluation Committee not linked to corporate performance in light of the fact that they Deliberation on important matters in place so that any compliance issues occurring within the Group Oversight Accounting audit assume the responsibility for auditing the execution of duties by are reported to the CSR Department by the in-house company or In-house companies, Corporate Divisions Directors as an independent body entrusted by shareholders. Representative Directors CSR Committee organization responsible for the relevant facility or group company. business divisions and departments and Executive Officers Deliberation on CSR activities The CSR Department then coordinates with other related depart- Operational execution Internal Audit Mitsubishi Materials (Group’s) Department Plants, Branches Headquarters and ments to investigate the causes of the issue, implement measures Subsidiaries and Affiliates in-house companies Internal audit CSR Department Corporate Governance and CSR Promotion Framework WEB Report on corporate governance (Japanese version is available via our website) to prevent a recurrence and take any other appropriate action. All

67 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 68 Material Issues 7 Governance Corporate Governance and CSR Promotion Framework

We make every effort to reinforce corporate governance and promote CSR, in order to enhance corporate value and make an even greater contribution to society through fair business activities.

67 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 68 Material Issues 7 Governance Compliance

Compliance is essential to the sustainable development of any company, and represents one of the cornerstones of corporate management. Here at the Mitsubishi Materials Group, we are constantly working to improve compliance awareness amongst individual employees, through activities such as domestic and overseas CSR training.

continuing our tireless efforts to earn even greater levels of trust measures, in order to develop the human resources we need to meetings. A group intellectual property meeting expand our operations on a global scale. In the future, we are in the Mitsubishi Materials Group in the future. Operating an In-House Reporting System planning to work with regional management companies in China We established an Internal Contact Office in December 2002 as a Reinforcing Intellectual Property Management, Extending CSR Education to all Group Employees and Thailand, amongst others, to upgrade regional CSR training consultation service to deal with reports and inquiries from Including in Emerging Countries As a member of the Mitsubishi Group, we uphold the “Three even further. Principles” that underpin the Mitsubishi Group’s management employees working for Mitsubishi Materials and other group We have continued to reinforce cooperation with Mitsubishi philosophy, whilst also carrying out our business activities in companies. We also set up an external reporting system in April Materials Group companies, Mitsubishi Group companies and  Educational and Training Program Attendance during Fiscal 2015 accordance with the Mitsubishi Materials Group’s own Corporate (Including Group Companies)★ 2006, as an outsourced service operated by an independent law overseas subsidiaries, to develop a framework that will enable us Philosophy and Code of Conduct. To promote these philosophies firm. We continue to raise levels of awareness by issuing all to gather accurate information and adequately protect our rights. Education/Training Program Attendance and establish genuine compliance awareness, it is essential that employees with information cards, and continue to provide In China, India and Southeast Asia, we are actively encouraging CSR education at domestic facilities, branches and we remain flexible and continue to adapt our activities and group companies 14,017 employees with information on subjects such as the availability companies to use the Patent Prosecution Highway (PPH) wherever and significance of our internal reporting system, procedure for possible, as well as working to quickly establish intellectual initiatives in line with changes in our business and the surrounding CSR training at headquarters 1,006 environment, rather than clinging to established practices. filing internal reports, and whistleblower protection measures, property rights, as part of our efforts to bolster our business CSR education at overseas group companies 86 Governance through channels such as our group newsletter and CSR education strategy. We are also committed to continually tackling counterfeit Domestic CSR Education Position-specific training 621 (including training for young employees) and training activities. products from China. 7 We have in place a framework that enables every employee at Other training (risk management training, etc.) 396 every domestic group company to undergo CSR training once a   Support in Emerging Countries Total 16,126 Number of Reports and Inquiries Received via our year. To achieve that, we have been training instructors to handle In-house Reporting System [FY] Monitoring information 2008 2009 2010 2011 2012 2013 2014 2015

• Monitoring local legislation and Establishing a Compliance application procedures framework of enforcement 21 24 22 28 32 19 22 23 • Monitoring foreign applications and other company’s rights in • Establishing local networks each country (Group companies, Mitsubishi Group companies, overseas subsidiaries) Providing CSR Training at Overseas Subsidiaries • Using Mitsubishi trademarks to clamp down on counterfeit goods Intellectual Property Management Reinforcing (Checking genuine articles onsite => In November 2014, we organized a CSR training course based on the theme of compliance for five rights at the local level Measures to prevent cross-border distribution) companies in Thailand, where a number of Mitsubishi Materials Group manufacturing and sales facili- We always respect third party intellectual property rights, whilst • Establishing filing routes • Assisting with contracts ties are located. The course also covered subjects such as risk management and environmental man- at the same time making sure that we adequately protect and • Increasing applications, using utility model and design rights agement, and was attended by a total of 62 employees. Looking ahead, we intend to work with reinforce our own rights. To achieve that, in fiscal 2015 we • Increasing applications stemming Mitsubishi Materials Southeast Asia, our management company in Southeast Asia, to provide ongoing reinforced systems aimed at precisely managing and utilizing the from local operations training throughout the region, taking into account feedback from questionnaires completed by train- latest information on intellectual property associated with our ees after completing their training course. CSR Training at Overseas Subsidiaries business activities. At the same time, we have been focusing on filing applications and establishing rights in line with our business

69 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 70 Material Issues 7 Governance Compliance

We take a broader view of compliance, incorporating elements CSR training, including at group companies, since 2012. As the Using Educational Tools to Raise CSR Awareness and R&D strategies, as we continue to build a powerful array of such as corporate ethics and social norms, as well as legal compli- driving force behind CSR activities at individual facilities and group In an effort to instill our Corporate Philosophy and Code of intellectual property rights. We also provide ongoing education in ance, and are sincerely determined to live up to our stakeholders’ companies, we focus on “face-to-face” training to enable instruc- Conduct into all Mitsubishi Materials Group employees, we intellectual property management for employees at all levels. We expectations. To do that, we continue to implement a range of tors to talk directly to employees about subjects such as our produce relevant booklets and cards, as well as a series of compli- then share knowledge and issues identified during activities such measures, including domestic and overseas CSR training, as part philosophy, Code of Conduct and compliance. We will continue to ance case study files. We also make case study files and training as these through channels such as group intellectual property of our ongoing commitment to improving compliance awareness train human resources to serve as instructors in the future. materials compiled by the CSR Department available via the meetings, in an effort to minimize risks and maximize value amongst individual group employees. intranet, so that CSR Supervisors can use them as and when throughout the Mitsubishi Materials Group. Overseas CSR Education necessary for purposes such as promoting CSR and educational With a focus on globalization, one of the priority themes under our activities in their respective departments. Materials such as these medium-term management plan (FY2015-17), we are reviewing are designed so that the contents are easy to understand and Effectively Implementing Compliance the contents of education and training based on conditions in practical, incorporating feedback from outside experts, as well as specific regions around the world. We are concentrating particu- Further Reinforcing our Compliance Framework examples of both internal and external compliance incidents. We have established a Compliance Panel, as a subdivision under larly on training in Asia, where we have located numerous our CSR Committee, in order to actively reinforce our groupwide manufacturing and sales facilities in recent years. In fiscal 2015, Initiatives during Corporate Ethics Month compliance framework. Specifically, the panel is working to we organized training courses for managerial employees at five Here at the Mitsubishi Materials Group, we have designated establish a framework capable of identifying compliance-related companies in Thailand. We take advantage of educational October as Corporate Ethics Month every year since 2006, in order issues within the Group as quickly as possible, and that will enable opportunities such as preliminary training for employees assigned to encourage individual divisions and group companies to it to explore preventive measures in consultation with related overseas and global human resource training courses meanwhile implement their own unique activities. We engage in a wide range departments. It also organizes groupwide educational and training to provide training in CSR-related issues such as conflict minerals, of activities, including reciting our Corporate Philosophy and Code exercises, in an effort to encourage compliance awareness. As human rights in emerging countries (child labor, forced labor), of Conduct, holding discussions based on unique educational tools compliance initiatives can never be perfect however, we will be competition law in related countries, and overseas anticorruption in the form of our case study files, and organizing employee continuing our tireless efforts to earn even greater levels of trust measures, in order to develop the human resources we need to meetings. A group intellectual property meeting expand our operations on a global scale. In the future, we are in the Mitsubishi Materials Group in the future. Operating an In-House Reporting System planning to work with regional management companies in China We established an Internal Contact Office in December 2002 as a Reinforcing Intellectual Property Management, Extending CSR Education to all Group Employees and Thailand, amongst others, to upgrade regional CSR training consultation service to deal with reports and inquiries from Including in Emerging Countries As a member of the Mitsubishi Group, we uphold the “Three even further. Principles” that underpin the Mitsubishi Group’s management employees working for Mitsubishi Materials and other group We have continued to reinforce cooperation with Mitsubishi philosophy, whilst also carrying out our business activities in companies. We also set up an external reporting system in April Materials Group companies, Mitsubishi Group companies and  Educational and Training Program Attendance during Fiscal 2015 accordance with the Mitsubishi Materials Group’s own Corporate (Including Group Companies)★ 2006, as an outsourced service operated by an independent law overseas subsidiaries, to develop a framework that will enable us Philosophy and Code of Conduct. To promote these philosophies firm. We continue to raise levels of awareness by issuing all to gather accurate information and adequately protect our rights. Education/Training Program Attendance and establish genuine compliance awareness, it is essential that employees with information cards, and continue to provide In China, India and Southeast Asia, we are actively encouraging CSR education at domestic facilities, branches and we remain flexible and continue to adapt our activities and group companies 14,017 employees with information on subjects such as the availability companies to use the Patent Prosecution Highway (PPH) wherever and significance of our internal reporting system, procedure for possible, as well as working to quickly establish intellectual initiatives in line with changes in our business and the surrounding CSR training at headquarters 1,006 environment, rather than clinging to established practices. filing internal reports, and whistleblower protection measures, property rights, as part of our efforts to bolster our business CSR education at overseas group companies 86 Governance through channels such as our group newsletter and CSR education strategy. We are also committed to continually tackling counterfeit Domestic CSR Education Position-specific training 621 (including training for young employees) and training activities. products from China. 7 We have in place a framework that enables every employee at Other training (risk management training, etc.) 396 every domestic group company to undergo CSR training once a   Support in Emerging Countries Total 16,126 Number of Reports and Inquiries Received via our year. To achieve that, we have been training instructors to handle In-house Reporting System [FY] Monitoring information 2008 2009 2010 2011 2012 2013 2014 2015

69 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 70 Material Issues 7 Governance Risk Management

organizes themed workshops aimed at key members of staff, Having formulated a business continuity plan (BCP) in the event of safer working environ- Improved earthquake resistance at the Naoshima Smelter & Risk Management Framework including those responsible for implementing activities in each a major earthquake in fiscal 2012, we formulated earthquake ments. Refinery welfare building Risk management activities are implemented by risk management department and carrying out performance reviews to check response manuals and BCP at 39 key group companies in Japan in fiscal 2013, and BCP tailored to suit specific local risks at 59 key departments throughout the Mitsubishi Materials Group, at head progress with activities. We also bring in outside consultants to Information Security and Personal office as well as individual facilities and group companies, in run advisory meetings, in an effort to support activities throughout facilities in other countries (BCP for ensuring employee safety, BCP conjunction with the CSR Committee. Every fiscal year, risk the Group. for maintaining and restoring important operations). In fiscal 2016, Information Protection management departments identify risks and specify issues that we intend to extend the scope of regulations to cover all consoli- We regard information security as one of our top priorities in terms particularly need to be addressed, so that they can then take dated subsidiaries, meaning that we will be formulating new BCP of CSR management. We similarly treat personal information as one effective measures to minimize the relevant risks. We carry out Implementing Risk Management at 27 domestic companies and four overseas facilities. We will also Activities at Overseas Facilities of our most important information assets, and make every effort to performance assessments towards the end of the fiscal year, to be conducting annual BCP reviews at group companies and minimize any risk of information being leaked, lost or damaged. check on our progress to date and to enable us to improve Based on our groupwide policy of strengthening overseas operations facilities that have already completed the formulation process, to In terms of information security activities, our focus is on rein- activities the following year. Progress reports and other details of (global competitiveness), as part of our medium-term management ensure that their contents are applicable. forcing technical measures and implementing new management measures in response to serious risks are regularly submitted to the plan (2014-16), we organized group training in Thailand in fiscal systems, with support from the Information Security Panel, a subdi- CSR Committee, which then shares information on risks with 2015 in an effort to reinforce risk management across Southeast vision of our CSR Committee. From a technical standpoint, we Governance senior management. Asia, where an increasing number of manufacturing and sales facilities are being located. continue to improve measures using smart devices and systems at 7  Sharing Risk Information In order to establish and raise standards of risk management ac- overseas group companies. From a management standpoint meanwhile, we conduct performance evaluations and provide employee tivities at overseas companies, it is essential to improve understand- Improving the Capabilities of the Crisis ing of our activities amongst Japanese personnel stationed overseas, education, as well as tackling new threats such as targeted attacks, CSR Committee Report risk information Management Committee Secretariat and ensure a sufficient level of understanding amongst local mem- in an effort to maintain and improve security levels. Report comprehensive information bers of staff responsible for carrying out actual operations. With that In the event of an earthquake directly underneath Tokyo or other in mind, we provide risk management training and advisory sessions such incident, it is essential that the Crisis Management Committee Adequately Managing Customer Information Report the result in the local language, as well as in Japanese. We will continue to or- CSR Department is able to orchestrate a rapid and precise initial response in order to We are responsible for the personal information of approximately Risk Management Organize and classify risk information ganize regular activities such as these from fiscal 2016 onwards, in minimize damage. 500,000 customers who belong to the gold saving scheme that Offer risk order to establish activities on a sustainable basis. We carry out a range of drills for the Crisis Management Commit- information we operate as part of our precious metals business. We make every tee Secretariat, including the following. effort to protect that information, through a range of different Corporate divisions/ ① Initial response drills in the event of an emergency measures. departments ② Coordinated drills for the partial transfer of capabilities to a sup- Our personal information database is centrally managed and In-house companies, port site in the event of a loss of capabilities at Head Office Sharing business divisions Branches subject to regular diagnosis by an expert security firm, in an effort risk information and departments ③ Assembly drills at night or on days off to guard against hacking. We also provide ongoing in-house educa- ④ AED drills • Grave risks of the Group tion on how to handle information appropriately, restrict access to • Risks that should be We will continue to organize drills such as these in the future, as addressed by the policies Mitsubishi Materials Directly all databases, and impose strict access restrictions on server rooms. of the entire Group Group companies managed plants part of our ongoing efforts to establish a framework capable of re- We remain committed to stepping up management systems in sponding quickly and precisely to any crisis that may occur. the future, to ensure peace of mind for all of our customers.

71 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 72 Material Issues 7 Governance Risk Management

We implement risk management activities throughout the Mitsubishi Materials Group, to ensure that we can continue to operate our business soundly. We are rolling out business continuity plans (BCP) based on lessons learnt from the Great East Japan Earth- quake, and make every effort to adequately control risks, in order to prevent accidents and other issues from occurring. Reinforcing our Crisis Management System Improving Plant Safety We continue to reinforce our crisis management framework, Reinforcing Compliance in Relation to Plant Safety spearheaded by the Crisis Management Committee, to ensure that In an effort to reinforce legal compliance and management Risks Relating to our Business Activities we are able to respond quickly and precisely in the event of an systems in relation to plant safety in the wake of the fire and Promoting Risk Management Activities Companywide risks are serious risks that could have a major emergency. explosion that occurred at our Yokkaichi Plant in 2014, we have impact on the entire company and include specific risks relating to Basic Approach Activities in fiscal 2015 included drills simulating the partial established a Plant Safety Department, as part of our Safety & the following areas. We carry out risk management activities in order to control the root transfer of Head Office capabilities to our Osaka Regional Head Health Department at Head Office, and are working to focus our causes of incidents that could have a negative impact on our Office (support site), and the initial response from the Crisis Man- operations around a three-pronged approach based on audits, Serious Risks Affecting the Entire Company performance and provide ongoing support for sound business agement Committee Secretariat, in the event of a loss of Head inspections and education. activities throughout the Mitsubishi Materials Group. In order to ❶ Major earthquakes ❺ Occupational health and safety Office capabilities due to an earthquake directly underneath Tokyo Earthquake Countermeasures at Production Facilities achieve that goal, we have set out and actively implement the ❷ Infectious diseases ❻ Production facilities or other such incident. We also carried out checks on progress with Our Production Engineering Center provides production facilities following three basic policies. ❸ Antimonopoly Act ❼ Quality control business continuity plans (BCP) and earthquake response manuals with design and architectural support in order to diagnose and rein- ❹ Human rights ❽ The environment at individual departments, facilities and group companies. In fiscal force structural earthquake resistance, and to optimize earthquake 2016, we intend to focus on priorities such as further strengthen- Risk Management Basic Policies and Objectives resistance and costs. We visualize earthquake risks based on a ing cooperation with support sites, continuing with drills aimed at three-tier index devised exclusively by Mitsubishi Materials. We ❶ Tackling high priority risks: Assigning priority to risks Promoting Risk Management Activities improving the capabilities of the Crisis Management Committee then select earthquake countermeasures based on the importance and implementing measures accordingly Risk management activities throughout the Group are conducted Secretariat, expanding the scope of BCP and earthquake response of the relevant build- ❷ Identifying unrecognized risks: Using Risk Management by individual departments according to plans approved by the CSR manuals, providing support for the establishment of independent ing, which raises onsite Records to establish a comprehensive overview of all risks Committee, in conjunction with the CSR Department and based on crisis management frameworks in other parts of Asia, and broad- awareness regarding ❸ Sharing information on risks: Disclosing details of the PDCA (plan-do-check-act) cycle. To ensure that each of the ening the provision of information on crisis management. companywide risks to all concerned parties PDCA processes functions effectively, the CSR Department earthquake resistance provides feedback to relevant departments as necessary, and Formulating BCP at all Consolidated Subsidiaries and helps to create organizes themed workshops aimed at key members of staff, Having formulated a business continuity plan (BCP) in the event of safer working environ- Improved earthquake resistance at the Naoshima Smelter & Risk Management Framework including those responsible for implementing activities in each a major earthquake in fiscal 2012, we formulated earthquake ments. Refinery welfare building Risk management activities are implemented by risk management department and carrying out performance reviews to check response manuals and BCP at 39 key group companies in Japan in fiscal 2013, and BCP tailored to suit specific local risks at 59 key departments throughout the Mitsubishi Materials Group, at head progress with activities. We also bring in outside consultants to Information Security and Personal office as well as individual facilities and group companies, in run advisory meetings, in an effort to support activities throughout facilities in other countries (BCP for ensuring employee safety, BCP conjunction with the CSR Committee. Every fiscal year, risk the Group. for maintaining and restoring important operations). In fiscal 2016, Information Protection management departments identify risks and specify issues that we intend to extend the scope of regulations to cover all consoli- We regard information security as one of our top priorities in terms particularly need to be addressed, so that they can then take dated subsidiaries, meaning that we will be formulating new BCP of CSR management. We similarly treat personal information as one effective measures to minimize the relevant risks. We carry out Implementing Risk Management at 27 domestic companies and four overseas facilities. We will also Activities at Overseas Facilities of our most important information assets, and make every effort to performance assessments towards the end of the fiscal year, to be conducting annual BCP reviews at group companies and minimize any risk of information being leaked, lost or damaged. check on our progress to date and to enable us to improve Based on our groupwide policy of strengthening overseas operations facilities that have already completed the formulation process, to In terms of information security activities, our focus is on rein- activities the following year. Progress reports and other details of (global competitiveness), as part of our medium-term management ensure that their contents are applicable. forcing technical measures and implementing new management measures in response to serious risks are regularly submitted to the plan (2014-16), we organized group training in Thailand in fiscal systems, with support from the Information Security Panel, a subdi- CSR Committee, which then shares information on risks with 2015 in an effort to reinforce risk management across Southeast vision of our CSR Committee. From a technical standpoint, we Governance senior management. Asia, where an increasing number of manufacturing and sales facilities are being located. continue to improve measures using smart devices and systems at 7  Sharing Risk Information In order to establish and raise standards of risk management ac- overseas group companies. From a management standpoint meanwhile, we conduct performance evaluations and provide employee tivities at overseas companies, it is essential to improve understand- Improving the Capabilities of the Crisis ing of our activities amongst Japanese personnel stationed overseas, education, as well as tackling new threats such as targeted attacks, CSR Committee Report risk information Management Committee Secretariat and ensure a sufficient level of understanding amongst local mem- in an effort to maintain and improve security levels. Report comprehensive information bers of staff responsible for carrying out actual operations. With that In the event of an earthquake directly underneath Tokyo or other in mind, we provide risk management training and advisory sessions such incident, it is essential that the Crisis Management Committee Adequately Managing Customer Information Report the result in the local language, as well as in Japanese. We will continue to or- CSR Department is able to orchestrate a rapid and precise initial response in order to We are responsible for the personal information of approximately Risk Management Organize and classify risk information ganize regular activities such as these from fiscal 2016 onwards, in minimize damage. 500,000 customers who belong to the gold saving scheme that Offer risk order to establish activities on a sustainable basis. We carry out a range of drills for the Crisis Management Commit- information we operate as part of our precious metals business. We make every tee Secretariat, including the following. effort to protect that information, through a range of different Corporate divisions/ ① Initial response drills in the event of an emergency measures. departments ② Coordinated drills for the partial transfer of capabilities to a sup- Our personal information database is centrally managed and In-house companies, port site in the event of a loss of capabilities at Head Office Sharing business divisions Branches subject to regular diagnosis by an expert security firm, in an effort risk information and departments ③ Assembly drills at night or on days off to guard against hacking. We also provide ongoing in-house educa- ④ AED drills • Grave risks of the Group tion on how to handle information appropriately, restrict access to • Risks that should be We will continue to organize drills such as these in the future, as addressed by the policies Mitsubishi Materials Directly all databases, and impose strict access restrictions on server rooms. of the entire Group Group companies managed plants part of our ongoing efforts to establish a framework capable of re- We remain committed to stepping up management systems in sponding quickly and precisely to any crisis that may occur. the future, to ensure peace of mind for all of our customers.

71 Mitsubishi Materials CSR Report 2015 Mitsubishi Materials CSR Report 2015 72 Independent Assurance Report Third-Party Assessment of the Mitsubishi Materials CSR Report 2015

The Mitsubishi Materials Group has revised its Having been given the opportunity to express my opinion once again, I’d als disclosing more specific details of strategies and initiatives in the future. material issues based on a materiality assessment. like to say that this year’s report left me with a strong impression of being Another risk that the company needs to keep a close eye on is a more strategic and balanced report than last year, as a result of Mitsubishi management of closed mines. These are essential behind-the-scenes Independent Assurance Report We believe Mitsubishi Materials' CSR Report 2015, Materials consolidating its material issues and reviewing priorities in line activities, requiring ongoing management in areas such as mine damage To the President and Chief Executive Officer of Mitsubishi Materials Corporation which has been organized in line with and is We were engaged by Mitsubishi Materials Corporation (the “Company”) to undertake a limited assurance engagement of the environmental, social and with the company's core operations. and drainage. Despite the fact that Mitsubishi Materials has permanent economic performance indicators marked with a star ★ for the period from April 1, 2014 to March 31, 2015 (the “Indicators”) included in its CSR focused on the revised material issues, is From an outsider’s perspective, I would say that the most important management staff at its 16 closed mines, it has nonetheless reported on Report 2015 (the “Report”) and CSR Report 2015: Metals Company Supplementary Data Book (the “Data Book”) for the fiscal year ended March 31, 2015; the Company’s self-declaration on the Global Reporting Initiative (GRI) application level (A+); the alignment of the Company’s policies to the easy-to-read. We expect that the Company will material issue for Mitsubishi Materials is “how to handle mineral resources.” breaches and improvement measures relating to mine drainage at International Council on Mining and Metals (ICMM)’s 10 Sustainable Development (SD) Principles and the applicable mandatory requirements set out in It is becoming increasingly difficult to obtain resources from mines, due to Osarizawa Mine. While it is important to reliably disclose negative ICMM position statements; the Company's identification and prioritization of material issues; and the Company's approach and management of its further address its material issues, which provide material issues. a whole host of issues such as the depletion of finite mineral resources, information like this, to ensure trust, we are seeing an increase in torrential the basic framework for CSR reporting as well as The Company’s Responsibility environmental destruction and human rights issues associated with mining downpours, strong winds and other abnormal weather conditions, posing The Company is responsible for the preparation of the Indicators in accordance with its own reporting criteria (the “Company’s reporting criteria”), as described in the Report and the Data Book, which are derived, among others, from the Sustainability Reporting Guidelines version 3.0 of the GRI and CSR initiatives. (as evidenced by conflict minerals), and the rise of resource nationalism even greater risks for closed mines, not least pollution. I would encourage Environmental Reporting Guidelines of Japan’s Ministry of the Environment; self-declaring a GRI Application Level in conformance with the application level criteria stipulated by the GRI; reporting on the alignment of the Company’s policies to the ICMM’s 10 SD Principles and the applicable mandatory The reporting boundary for environmental amongst resource-producing countries. At the same time however, demand Mitsubishi Materials to come up with new management ideas to prevent requirements set out in ICMM position statements; reporting on the Company's identification and prioritization of material issues; and reporting on the performance indicators has also been expanded to for resources is on the increase due to globalization and economic growth in any decline in morale amongst workers at closed mines. Company's approach and management of its material issues. Our Responsibility include the Company's major consolidated emerging and developing countries, putting more and more pressure on Business continuity depends on effective safety measures in high-risk Our responsibility is to express a limited assurance conclusion on the Indicators based on the procedures we have performed. We conducted our supply and demand. There are social issues to address too, including pollution workplaces, where workers are engaging in activities such as smelting using engagement in accordance with ‘International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements other than Audits or Reviews subsidiaries, in and outside of Japan, with of Historical Financial Information’, ‘ISAE 3410, Assurance Engagements on Greenhouse Gas Statements’, issued by the International Auditing and from large volumes of used home appliances and other waste products. high temperature furnaces, treating metals with chemicals, or crushing Assurance Standards Board, and the ‘Practical Guidelines for the Assurance of Sustainability Information’ of J-SUS. The limited assurance engagement manufacturing facilities, which now gives a better consisted of making inquiries, primarily of persons responsible for the preparation of information presented in the Report and the Data Book, and With all that going on, it is particularly impressive that this report limestone by blasting. The report mentions “Safety Declaration Day”, as a applying analytical and other procedures, and the procedures performed vary in nature from, and are less in extent than for, a reasonable assurance overall picture of the Group's environmental emphasizes the strategic importance of resources and recycling from a preventive measure following the explosion at the Yokkaichi Plant in engagement. The level of assurance provided is thus not as high as that provided by a reasonable assurance engagement. Our assurance procedures included: impact. On the other hand, the reporting boundary management standpoint. The top interview mentions specific details about January 2014. While it is deeply regrettable when a serious accident like this • Interviewing with the Company’s responsible personnel to obtain an understanding of its policy for the preparation of the Report and the Data Book “recycling and reusing resources,” touching on the significance of the occurs, it is crucial to learn lessons and incorporate them into preventive and reviewing the Company’s reporting criteria. for social performance indicators, such as those • Inquiring about the design of the systems and methods used to collect and process the Indicators. company’s Smelting and Cement Recycling System, combining core measures, and to reinforce safety awareness amongst all employees, in • Performing analytical reviews of the Indicators. related to occupational health and safety, work • Examining, on a test basis, evidence supporting the generation, aggregation and reporting of the Indicators in conformity with the Company’s technologies in the fields of both smelting and cement manufacturing. One order to sustain business activities and honor those who lost their lives. The reporting criteria, and also recalculating the Indicators. environment and diversity, is still limited. We of the three core strategies under Mitsubishi Materials’ current report states that all employees stopped for a moment of silence at the time • Visiting to the Company’s Naoshima Smelter & Refinery selected on the basis of a risk analysis. • Evaluating the overall statement in which the Indicators are expressed. believe that the Company needs to plan to set up medium-term management plan is “pursuing a recycling-oriented business of the accident on Safety Declaration Day one year on. I hope that • Evaluating the Company’s self-declared GRI application level against the application level criteria. model.” Central to that are the company’s urban mine initiatives, the social Mitsubishi Materials will maintain such a high level of safety awareness as • Assessing the alignment of the Company’s policies to the ICMM’s 10 SD Principles and the applicable mandatory requirements set out in ICMM a structure and mechanism for managing social position statements through documentation reviews and interviews. performance data on a global basis, in the same and corporate significance of which are covered in great detail in the part of its companywide DNA, and not let initiatives such as this become • Interviewing with the Company's responsible personnel and reviewing documents with respect to the Company’s process of identifying and report’s special feature. mere formalities. prioritizing its material issues. manner as the Company did for environmental • Interviewing with the Company's responsible personnel and reviewing documents with respect to the Company’s approach to and management of its I have high hopes for the future, in terms of seeing how this In terms of the company’s diversity strategy meanwhile, the report material issues. performance data. Conclusion recycling-oriented business model grows and develops over time, both on mentions that Mitsubishi Materials has set targets for promoting greater Based on the procedures performed, as described above, nothing has come to our attention that causes us to believe that: a quantitative and qualitative basis, and how the company advances its roles for women and is working to harness foreign human resources. In the • the Indicators in the Report and the Data Book are not prepared, in all material respects, in accordance with the Company’s reporting criteria as described in the Report and the Data Book; commitment to “responsible procurement of raw materials (responsibility era of “Abenomics”, there is a sense that society is changing faster than • the Company’s self-declaration on the GRI application level does not conform to the application level criteria stipulated by the GRI; • the Company’s policies are not aligned to the ICMM’s 10 SD Principles and the applicable mandatory requirements set out in ICMM position throughout the value chain).” With regard to the former approach, it would anyone could have expected. Mitsubishi Materials will be in competition statements as described on pages 7 and 8 of the Data Book; perhaps be wise to refer to exchanges of opinions with various different with other companies and industries to identify and recruit talented human • the Company has not identified and prioritized its material issues as described on page 25 of the Report; and • the Company has not approached and managed its material issues as described on page 26 of the Report. outside stakeholders rather than merely discussing options in-house. The resources too, so I hope to see further initiatives in this area in the future. Our Independence and Quality Control company’s first ESG meeting for investors in July was a prime example. With We have complied with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which includes independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, regard to the latter approach, Mitsubishi Materials will need to extend Mariko Kawaguchi confidentiality and professional behavior. In accordance with International Standard on Quality Control 1, we maintain a comprehensive system of activities in line with its CSR investment and procurement standards. quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable Chief Researcher, Research Division, legal and regulatory requirements. In terms of global warming measures meanwhile, the report gives an Daiwa Institute of Research Ltd. impression that Mitsubishi Materials is constantly working to save energy Profile on a companywide scale, and even touches on the inevitability of and man- Mariko Kawaguchi joined Daiwa Securities in 1986. Following a spell in management strategy research at Daiwa Institute of Research, she KPMG AZSA Sustainability Co., Ltd. agement risks associated with CO2 emissions from the company’s cement Tokyo, Japan worked as Manager of the CSR Division and head of CSR in the Corpo- January 6, 2016 Tomonori Yoshida operations, due to using limestone as a raw material. This year, COP21 set rate Communication Department at the Daiwa Securities Group Inc.. In out an international framework for CO2 reductions by the year 2030. With April 2012, she returned to Daiwa Institute of Research as Chief KPMG AZSA Sustainability Co., Ltd. Researcher in the Research Division. Her specialist areas include CSR and governments imposing ever tighter restrictions and investors set to be even socially responsible investment (SRI). She also serves as co-representative more rigorous in their requirements, I would hope to see Mitsubishi Materi- director of the Japan Sustainable Investment Forum.

Application level with the GRI Sustainability Reporting Guidelines (Version 3.0) Response to the Third Party Assessment The Global Reporting Initiative (GRI) is a non-governmental organization (NGO) tasked with formulating international guidelines for sustainability reporting. The GRI Sustainability Reporting Guideline encourage the inclusion of a self declaration on Application Level so that readers We ask outside parties to objectively examine and assess our CSR to provide information on our progress in the future. activities, and our efforts to disclose information, so that we can While we continue to report on the subject of safety initiatives, the can easily see the extent to which the report complies with the guideline. In conjunction with the Metals Company Supplementary Data Book, dedicate ourselves to expanding and improving our activities even gravity of the accident at our Yokkaichi Plant is also permanently etched which is available on our website, our 2015 Corporate Social Responsibility Report achieves Level A+ application as specified in the GRI further. on our memories. We will do everything within our power as a company guidelines. In her third-party assessment for this year, Mariko Kawaguchi praised to implement safety measures, and are determined to establish a Mitsubishi Materials highly for the information we have disclosed from deep-rooted level of safety awareness amongst each and every one of Report Application Level C C+ B B+ A A+ a management strategy standpoint in the area of resources and our precious employees. recycling, one of the seven themes under our newly revised material Finally, this year’s independent assurance underlines the need to Report on: Report on all criteria listed for Same as requirements for Level B issues. expand our scope of disclosure for social data. We consider this to G3 Profile Disclosures 1.1 Level C plus: With issues surrounding resources set to become even more extremely important in terms of monitoring actual activities at individual 2.1-2.10 1.2 important in the future, we continue to engage in recycling operations group companies, and will continue to step up initiatives in the future. OUTPUT 3.1-3.8, 3.10-3.12 3.9, 3.13 across various different areas of business, and are constantly striving to 4.1-4.4, 4.14-4.15 4.5-4.13, 4.16-4.17 develop new technologies and processes in an effort to preempt public Not Required Management approach disclosures Management approach disclosures expectations and requirements. We will continue to report on the social G3 Management for each indicator category for each indicator category Approach Disclosures significance and value of our recycling operations in the future, as we Hiroshi Kondo OUTPUT Report on a minimum of 10 Report on a minimum of 20 Respond on each core G3 and continue to step up initiatives aimed at ensuring responsible procure- Senior Executive Officer Performance Indicators, at least one Sector Supplement* indicator with Standard Disclosures Performance Indicators, including at ment of raw materials. Profile from each of: economic, due regard to the materiality least one from each of: social, We take the ongoing management of closed mines that have June 2011 Executive Officer G3 Performance Indicators environment, human rights, labor, Principle by either: a) reporting on economic, and environment Report Externally Assured Report Externally Assured Report Externally Assured society, product responsibility the indicator or b) explaining the reached the end of their life very seriously, and regard it as one of our April 2013 Senior Executive Officer (current position) & Sector Supplement General Manager, Mineral Resources & Recycling Performance Indicators reason for its omission highest priorities as a company. We are currently investing management

OUTPUT Business Unit (current position) resources in order to reinforce initiatives in this area, and will continue April 2015 Vice Chair, CSR Committee (current position) *Sector supplement in ﬁnal version A GRI Content Index is available via the CSR section of our website. WEB

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Mitsubish i For further information, please contact us at: 20 E-Mail：[email protected] For People, Society and the Earth 1 5