Materialities (Priority Issues) and KPIs (Key Performance Indicators)

The JX Metals Group has identified six materialities for priority action in order to realize our 2040 Long-Term Vision. KPIs have been set for each materiality, and the ESG Committee, chaired by the president, administrates this system, measuring and assessing levels of achievement for these KPIs.

Materialities Initiatives FY2022 KPIs Related SDGs
Environment Contributing to Environmental Conservation
  • Contribute to global environmental conservation by creating a carbon-free and recycling-oriented society
Total in-house CO2 emissions: Promoting initiatives to achieve net zero CO2 emissions in fiscal 2050 and 50% reduction in fiscal 2030 (vs. fiscal 2018) 12 13
Increase percentage of recycled raw materials: Expand the breadth of recycled materials to be treated
Landfill Disposal Rate: Less than 1% in fiscal 2022
Social Provide Advanced Materials That Support Lives and Lifestyles
  • Advance development of new technologies and contribute to an IoT/AI society
Develop advanced materials needed by the IoT/AI society 7 8 9
Build a framework to support technology-based management
Create Attractive Workplaces
  • Create a healthy, safe, and peaceful working environment for all employees
  • Create an environment in which diverse employees feel fulfilled and fully express their talents
Reduce serious occupational accidents: Less than 0.70 accidents (four days or more of lost work time) per 1,000 workers in fiscal 2022 3 8 10
Increase annual leave utilization rate: 80% or more in fiscal 2022
Implement initiatives to revitalize people and organizations
Initiatives for health promotion: Cancer screenings for 70% of employees or more in fiscal 2022
Maintain and improve hiring rate for disabled persons: 2.3% or more in fiscal 2022
Respect Human Rights
  • Conduct business activities that respect the human rights of all throughout the supply chain, including local community residents, customers, employees, and business partners
Percentage of employees taking human rights training (100% in fiscal 2022) 5 10
Conduct survey of human rights in supply chains
Coexistence and Co-Prosperity With Local Communities
  • Foster relationships of trust with local communities through community-based social contribution activities and communications in every business location in Japan and abroad
Continuing dialogue with local communities 11 15
Governance Strengthen Governance
  • Ensure sound, transparent business management via thorough compliance and risk management activities
Steady operation of group-wide risk management
Compliance training tailored to business characteristics and social movements, etc.
Materiality Identification Process

The following steps were taken to identify Group materialities, based on global social issues and the goals set forth by the SDGs, as well as international guidelines (GRI, ISO 26000, etc.), initiatives in Japan and overseas, and trends among industry peers. The identified materialities will be periodically reviewed in accordance with future changes in social conditions and needs, management strategies, and other factors.

Materiality Identification Process

ESG Promotion System

Though the Group has taken a variety of actions over the years toward social contribution and environmental conservation, it has become necessary to strengthen organizational response to global ESG trends and take actions toward ESG management from a Group-wide perspective. Therefore, in October 2020, we established the ESG Promotion Department to oversee ESG initiatives, and created related committees to assist.

The ESG Committee serves as an advisory body to the president, and is responsible for basic policies and activity plans related to ESG initiatives, as well as monitoring of these initiatives. The ESG Committee is chaired by the president of the Company, with members from the Executive Council and with participation by outside directors as observers. This committee meets twice a year in principle. In addition, in order to promote and permeate ESG activities throughout the Group, we have established the ESG Promotion Managers Meeting as a subordinate body to this committee, consisting of the ESG promotion managers from each of the Company’s departments and each Group company. Important ESG-related matters are discussed and reported to the Board of Directors and the Executive Council as appropriate.

In fiscal 2022, we held ESG Committee meetings in June and November to discuss activity policies for each priority issue and report on the status of activities.

ESG Promotion System

Permeating ESG Management

The Group aims to deepen understanding about the importance of ESG and our activities. To do so, we distribute information on ESG using the Group intranet and internal newsletters. We also hold internal trainings and e-learning programs. In 2023, we conducted training for employees at each of our major business locations from May to August to further spread ESG activities. These trainings featured AI voice narration for the first time, receiving positive feedback from 84% of the participants.

In addition, we distribute the Sustainability Report each year and conduct questionnaires available via paper and online to survey employees. Surveys cover the penetration of ESG and CSR mindsets and status of employee involvement in practicing ESG and CSR. In fiscal 2022, 4,814 of 5,652 eligible employees responded to the survey, resulting in a response rate of 75%.


Training slide materials

Excerpt of Questionnaire Responses
Q: Do you understand our ESG management initiatives?

Yes 81.9%
Unsure 14.8%
No 3.1%
No answer 0.2%

Q: Do you understand and agree with the JX Metals Group Code of Conduct?

Yes 96.2%
No 2.8%
No answer 1.0%

Q: Do you think materialities are well understood in your organization and workplace?

Yes 69.1%
No 29.2%
No answer 1.7%

*
Respondents have multiple options for answering questions, with affirmative answers categorized as “Yes” and negative answers as “No.”
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