Materiality 5

Coexistence and Co-Prosperity With Local Communities

Since the inception of our business at the Hitachi Mine, the JX Metals Group has emphasized the spirit of maintaining good relations with local communities in conducting business. Keeping alive that spirit today, we have written coexistence and co-prosperity with society into our Code of Conduct. We additionally set an action plan for each fiscal year and work day to day to fulfill it.

Major Initiatives
Social Contribution Activities

Social Contribution Activities

Stakeholder Engagement

Stakeholder Engagement

KPIs and Progress

Assessment: Achieved/Steady Progress Not Achieved

KPI FY2022 Results/Progress Assessment
Continuing dialogue with local communities Despite the impact of COVID-19, we endeavored to understand the needs of local communities, building trust with stakeholders related to corporate activities through ongoing dialogue.

Social Contribution Activities

With the goal of further strengthening relationships with local communities through social contribution activities, the JX Metals Group conducted community-based initiatives at each of our operating sites in Japan and overseas. While the impact of COVID-19 resulted in restrictions or limitations on our activities, we endeavored to create opportunities for communication with local communities, valuing the spirit of coexistence and co-prosperity that we have pursued since our founding.

Results of Main Social Contribution Activities in FY2022
Activity Location Date Description
Environmental Conservation Activities Cleanup around plant areas Isohara Works May 2022 Ninety-five employees and their families participated in an environmental beautification campaign organized by Kitaibaraki City to pick up trash around the Otsu Port.
Sagami River Cleanup Campaign Kurami Works May 2022 About 90 employees participated in a beautification activity conducted mainly by local governments to preserve the environment in the Sagami River basin.
Educational Activities Youth X (Future) Essay and Children X Drawing Contest Saganoseki Smelter & Refinery, JX Metals Smelting Co., Ltd. July 2022 - March 2023 The Youth X (Future) Essay and Children X Drawing Contest was held at elementary and junior high schools in the Saganoseki and Kouzaki areas.
Nippon Mining Museum and plant tours Hitachi Works February 2023 We held a plant tour for local residents to further deepen understanding of our business among the local residents who support us. Over the two days, a total of 70 people visited the Shirogane district and the Nippon Mining Museum. We also held a regular meeting with the Shirogane-cho Environmental Liaison Council in conjunction with the tours. Here, we exchanged views on the construction status of the new rolling mill, the Miyata River cleanup, and other environmental activities.
Cooperation with the Minato Science Festa Head Office March 2023 We participated in the Minato Science Festa 2023 - Let's go to the science fair together! held at the Minato Science Museum, where we held a laboratory class.
Community Development Participation in local festivals Saganoseki Smelter & Refinery, JX Metals Smelting Co., Ltd. April and July 2022 We dispatched 10 young employees of the smelter to two local festivals in April and July 2022. Here, they participated in the spring festival at the Shiinetsuhiko Shrine, a well-known shrine dedicated to the god of maritime safety in the fishing town of Saganoseki, and the summer festival at the Hayasuhime Shrine.
Exhibit at Eco Fest Hitachi Hitachi Works July 2022 We set up an exhibition at Eco Fest Hitachi 2022, an event organized by Hitachi City to raise environmental awareness among citizens. The theme of our exhibition was Introducing Businesses that Contribute to a Resource Recycling-Oriented Society. Here, we introduced the history of the Hitachi Works and our business.
Sports Promotion Regional promotion of corporate sports Hitachi Works Year-round Kendo club members from Hitachi Works coach local students from kindergarten to high school (10-15 students) four times a week.
Environmental Conservation Activities

Employees participating in the Sagami River Cleanup Campaign

Educational Activities

Award ceremony for the Youth X (Future) Essay and Children X Drawing Contest

Participants of the Nippon Mining Museum tour

Laboratory class at the Minato Science Festa

Community Development

Young employees participating in a festival and carrying the portable shrine

Our booth at Eco Fest Hitachi

Sports Promotion

Kendo class activities

Column

Regional Cooperation in Ibaraki Prefecture

JX Metals Corporation traces its roots back to the start of operations at the Hitachi Mine in Hitachi City, Ibaraki Prefecture, in 1905. Even today, we have several production facilities in this prefecture. We have a very close relationship with Ibaraki Prefecture, and the area is very important to our business. Looking ahead to the construction of our new factories and the growing importance of reliable supply chains, we are promoting activities to further develop the regional economy and increase our visibility there.

Signing a Comprehensive Cooperation Agreement With Hitachinaka City

In January 2023, JX Metals concluded a comprehensive cooperation agreement with Hitachinaka City for the construction of a new factory in the city. This agreement was made in the hope that we could help city development as a member of the local community.

We will contribute job creation and industrial development through the operation of our new plant. In addition, we also donated 100 million yen through the local tax system for corporations. Through this donation, we will support various activities for the future of the community, such as nurturing the next generation and operating the community center in Ajigaura district, where our new plant is located.

Signing a Comprehensive Cooperation Agreement With Ibaraki University
Establishing a Structure to Promote Innovation
Signing a Top Partner Agreement With Mito HollyHock for the 2023 Season

In April 2022, JX Metals concluded our first Platinum Partner Agreement with the professional soccer club Mito HollyHock. In signing this agreement, we have supported efforts to revitalize local communities, foster the next generation, and solve local issues through sports promotion. This partnership was signed for a period of just over six months. During this time, we strongly desired to work with this team that continues community-based activities under the slogan of Creating a new original landscape for the city. Therefore, we signed a Top Partner Agreement with the team in October 2022, the highest category of official partner. JX Metals will continue to support the team and their activities in the 2023 season by placing advertisements on the top team uniforms, holding Thanks Matches, and collaborating with soccer schools and other next-generation development activities.

Donating 100 Million Yen to Nikko Memorial Hospital

Nikko Memorial Hospital was established as an affiliated clinic of the Hitachi Mine, the root mine of the Company. This hospital has long been involved in the health care and medical treatment of employees, their families, and local residents. In 2018, we began planning the construction of a new hospital building due to the deterioration of old building that had been in use since 1981. Construction began in 2019, and in March 2022, the hospital made a comeback with a new integrated health check center and a long-term care medical center. Nikko Memorial Hospital continues to operate as an essential part of community healthcare that protects the health of citizens to this day.

Due to high community expectations for the hospital, JX Metals donated 100 million yen to the hospital in August 2022 to support its operations as much as possible. We hope that Nikko Memorial Hospital will continue to be an integral part of local healthcare.

Stakeholder Engagement

The Group believes that understanding the demands of various stakeholders accurately, responding in good faith, and building relationships of trust will lead to an increase in corporate value. To this end, we take advantage of opportunities for dialogue with each stakeholder and engage in active two-way communications.

Key Stakeholders and Responsibilities Main Means of Communication Main Topics
Customers

We will contribute to achieving a more affluent society by improving satisfaction and fulfilling our social responsibilities through the stable and efficient supply of high-quality products.

  • Communication in sales activities
  • Dissemination of information via website and SNS
  • Exhibit at the 9th Highly-functional Metal Expo
  • Invitation to SQUARE LAB
  • Stable supply of highly-functional products
  • Improvement of economic efficiency and added value of products
  • Improvement of environmental performance of products
  • Appropriate disclosure of product information
Shareholders and investors

As a major operating company of the ENEOS Group, we will strive to disclose information in a timely and appropriate manner through ENEOS Holdings, a listed company.

  • Publication of Sustainability Report
  • Disclosure of information on website
  • IR news email distribution
  • General meeting of shareholders, financial results briefing, business office information
  • Stable profit return
  • Easy-to-understand information disclosure on management strategies
  • Full disclosure of ESG information
Employees

We will promote the creation of a rewarding workplace, focusing on the improvement of the work environment and the enhancement of training systems. And we will strive to improve the motivation of each individual.

  • Publication of the group newsletter Cuprum
  • Preparation and distribution of the ESG Handbook and the Handbook for Supporting Balancing Childcare or Nursing Care
  • Implementation of self-assessment system
  • Holding online workshops
  • Dialogue between labor unions and management
  • Various employee training and education programs
  • Prevention of occupational accidents
  • Penetration of Group ESG activities
  • Achieving diverse work styles
  • Enhancement of training system
  • Fair and equitable personnel evaluation
  • Maintaining and promoting mental and physical health
Business partners

We will conduct business with our partners built on relationships of trust. We are working to achieve fair and equitable transactions throughout the supply chain.

  • Communication through purchasing activities (CSR Procurement Questionnaire)
  • Operation of an inquiry desk
  • Conducting surveys with business partners
  • Invitation to SQUARE LAB
  • Equal and fair trade
  • Management of occupational safety
Local communities

We will pursue coexistence and co-prosperity at each of our bases by creating understanding of our business and building cooperative relationships through various exchange opportunities.

  • Creation of cooperation agreements with universities and establishment of joint research courses
  • Conducting factory tours, office tours, and visiting classes
  • Participation in and sponsorship of community events
  • Conducting briefings for local residents
  • Participation in local volunteer activities
  • Strengthening cooperation with local communities for their revitalization
  • Cultivation of a new generation and educational support
  • Reduction of the environmental impact of the region
International community

We pay close attention to trends in global warming and other international issues. We engage with issues proactively and comply with laws and regulations.

  • Implementation of business practices that support the SDGs
  • Response to TCFD / Endorsement of Challenge Zero / Participation in GX League
  • Establishment of a resource-recycling society
  • Climate change adaptation and mitigation
  • Progress in the Digital Society
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