SUSTAINABILITY REPORTANNUAL REPORT 2018 SIMS METAL MANAGEMENT LIMITED SUSTAINABILITY REPORT 2018 ABOUT THIS REPORT Stewards of our world’s limited resources... ABOUT SIMS METAL MANAGEMENT ALIGNING TO INVESTOR INTEREST We at Sims Metal Management are proud Over the past year, our investors of our role as stewards of our world’s have increasingly asked about Sims’ Recycling for posture and performance in the areas >100 years limited resources for over 100 years. As a global leader of metals and electronics of environmental, social and corporate recycling we play an intrinsic role in the governance (ESG). As the graphic below circular economy, by keeping resources in illustrates, Sims is very much aligned with use as long as possible, extracting the the circular economy – where materials maximum value from those resources remain in useful life for as long as possible. >250 facilities We discuss this in detail later in this report. including JVs while in use, and then recovering and regenerating products and materials at In June 2017, the G20 Financial Stability the end of their useful life. Our efforts Board’s Task Force on Climate-Related contribute to the sustainable future of Financial Disclosures (TCFD) released its our world. final recommendations on the disclosure Operations in Our core businesses are: of the risks and opportunities as we 18 countries transition into a lower carbon economy. • Metals Recycling - As the world’s We have organized this report around leading publicly listed metals recycler, the four main categories of the TCFD Sims buys and sells ferrous and recommendations. (Governance, Strategy, non-ferrous recycled metals. Risk Management, and Metrics) >5,000 • Electronics Recycling (Sims Recycling employees globally Solutions) takes in discarded electronics and refurbishes, repairs, GLOBAL REPORTING INITIATIVE remanufactures and restores the Sims is a long-standing supporter of materials for continued useful life. standardized sustainability reporting • Municipal Recycling – Sims Municipal guidelines in general, and of the Global Recycling receives household Reporting Initiative (GRI) in particular. recyclables from municipalities such as New York City and Chicago. We include a table inside the back cover of this report cross-referencing key GRI • Renewable Energy Generation - Sims’ indicators aligned with our Materiality joint venture LMS is a leading renewable Assessment, showing where in this energy and carbon abatement company, report those topics are discussed. offering energy recovery from landfill gas and solar energy collection panels. The figure below depicts Sims’ businesses and their place in the circular economy. SIMS METAL MANAGEMENT AND THE CIRCULAR ECONOMY REMANUFACTURE REFURBISH REFILL REPAIR ELECTRONICS RECYCLING RESTORE • 430,000 tonnes of electronics recycled annually • 28 facilities across 16 countries RECYCLING • Emerging opportunities in IT asset management SOLUTIONS and engineering solutions • Development of innovative recycling technology useful to both electronics and metals recycling businesses MATERIAL EXTRACTION PRODUCTION DISTRIBUTION CUSTOMER END-OF-LIFE PROCESSING USE METALS RECYCLING • 9.9 million tonnes of secondary metals sales in FY18 • 200+ facilities with operations in 6 countries, including joint ventures • Export capabilities across North America, UK and Australasia, with 13 deep water ports globally • Global market leader RENEWABLE ENERGY SIMS (LMS) LANDFILL METAL MANAGEMENT SERVICES MANAGEMENT MUNICIPAL RECYCLING MUNICIPAL FOR FURTHER INFO PLEASE CONTACT RECYCLING ELISE GAUTIER 200 WEST MADISON, STE 3600, CHICAGO, IL 60606. TELEPHONE: 1 312 644 8562 ABOUT THIS REPORT SIMSMM.COM 01 ABOUT THIS REPORT Our 2018 Sustainability Report shares our progress in shaping a more sustainable world. It discusses our contributions to the circular economy, as well as the work and projects we are pursuing to minimize the impact of our operations on the environment and society through responsible governance and leadership. This Sustainability Report supplements the discussion of our environmental, social and governance activities integrated into our Annual Report of Financial Results for FY2018. It follows the guidelines established by the G20 Financial Stability Board’s Task Force on Climate-Related Financial Disclosures (TCFD) released in June 2017. – Introduction • Sims’ Core Businesses • From the Chairman • From the CEO – Governance • Sustainability Governance and Leadership • Sustainability Governance Organisation • Our Core Values • Global SHECS Polies • Driving SHECS Performance – Strategy • Sims and the Circular Economy • UN Sustainable Development Goals • Innovation and Technology – Risk Management • Enterprise Risk Management • Materiality Assessment • Climate Change Ramifications – Metrics and Performance • Valuing Sims’ impact on Society • Performance Highlights • Health and Safety • Energy and Greenhouse Gas • Carbon Risk • CO₂ Emissions • Green Energy • Waste Management • Water Conservation • Community Engagement • Diversity and Talent – External Recognition – Our Path Forward – Alignment with the Global Reporting Initiative SIMS METAL MANAGEMENT LIMITED SUSTAINABILITY REPORT 2018 02 INTRODUCTION Business has always been a rapidly changing landscape, and companies that adapt accordingly will succeed and flourish. In today’s world, with restricted resources, global interconnectivity and population pressures on energy, waste and water, the ability to do more with less has become an imperative for survival. SIMS’ CORE BUSINESSES Our core businesses contribute – Electronics Recycling – Global – Renewable Energy – In 2001, Sims to the closed-loop circular flow of E-Recycling, which operates under the entered the renewable energy market metals and electronics, creating name Sims Recycling Solutions (SRS), with a strategic investment in LMS new value from limited resources. is a global leader in electronics reuse Energy. That investment has grown and recycling across the globe. SRS into a 50% ownership of LMS, one of – Sims is the – Metals Recycling provides disposition services for all Australia’s premier landfill gas-to- world’s leading publicly listed types of retired electrical equipment energy and solar renewable energy metals recycler, encompassing to local, national and global customers companies that generates 395,000 the buying, processing and selling in a wide variety of business sectors. megawatt hours of base-load renewable of ferrous and non-ferrous 430,000 metric tonnes of electronics electricity annually. By capturing the recycled metals. 9.9 million metric are recycled annually by our facilities. landfill greenhouse gas emissions, LMS tonnes of secondary metals were Our worldwide network of certified abates more than 3.3 million metric sold in FY18. The metals recycling processing facilities, with no export tonnes of carbon (CO2-e) each year and activities are geographically mandates, reinforces our closed-loop provides a local renewable energy source diverse, with operations globally approach to responsible electronic for the community. including the United States, recycling. Australia and the United Kingdom. The nature of our business, our global Our network of processing – Municipal Recycling – In 2002, Sims reach, our leadership and the commitment facilities, many with deep-water expanded into curbside recycling in the of our employees all point to a future port access, is supported by an United States, with the creation of of sustainable innovation and growth. extensive number of feeder yards Sims Municipal Recycling. The operation from which to source recyclable has grown to become a cornerstone ferrous and non-ferrous metals. of New York City’s recycling system. In total, the business processes and markets nearly 500,000 metric tonnes of municipal curbside material annually. We transform society’s waste into valuable resources. SIMSMM.COM 03 FROM THE CHAIRMAN FROM THE CHAIRMAN SUSTAINABILITY AND CORPORATE RESPONSIBILITY “ Our Company’s purpose...put our planet first. We are convinced that by so doing, Sims will continue to prosper for the benefit of its shareholders, employees, the communities in which we operate, our suppliers and our customers.” Sims FY18 results bear testimony to our Ensuring that our conduct in all appealing for women. Our approach to dedicated employees maintaining their jurisdictions aligns with the highest hiring is fair, our policies and working commitment to continually improving our ethical standards is a key priority for the environment result in all employees business processes, applying disciplined Board and senior leadership team. This feeling they are welcomed, and our deployment of capital, and ensuring that includes protecting the environment, remuneration is equal. We are service to our suppliers and customers fostering diversity, actively being involved committed to ensuring there is no remained at the highest standards; all the in our communities, and conducting our harassment in the workplace and that, while working more safely than ever business so we can adapt to changing as an organisation, we support our before in our Company’s 101 year history. markets and expectations. workforce throughout their careers at Sims. Reaching this milestone is no reason for Safeguarding the environment in which our Company to be complacent about the we operate continues to be a measurable Over the past twelve months, directors future. Ensuring that we have the right objective and our sustainability report visited eight operating