Water Policy

Amended: April 1, 2025

Sumitomo Metal Mining Group’s Water Policy

1. Context

Sumitomo Metal Mining Co., Ltd. and its subsidiaries (hereinafter the “SMM Group” or “we”) requires large amounts of water in its production processes, mainly in its mining and metals operations, and water is an indispensable resource for its business activities. At the same time, water is an essential shared resource for local communities and the surrounding ecosystem. We will set targets corresponding to nature-related risks in order to avoid or minimize the negative impacts on nature of the SMM Group’s business activities, which are dependent on ecosystem services.
This Water Policy guides our commitment for sustainable use and management of water resources across all our operations.

2. Scope

This policy applies to the entirety of the SMM Group’s business and all executives and employees of the SMM Group, unless any aspect of the Policy is not permitted by local law or regulations.

3. Governance and Promotional framework

The executive officer in charge of the Safety & Environment Control Department, which oversees the Nature Conservation and Restoration Subcommittee, a subcommittee of the Sustainability Committee, will report regularly to the Sustainability Committee, which is overseen by the Board of Directors, on the status of compliance with this policy. The executive officer will also promote nature-related initiatives.

4. Water Policy Principles

As an ICMM (International Council on Mining and Metals) member, we aligned this Policy with ICMM member’s approach outlined in the ICMM position statement on water stewardship. SMM has adopted the following principles with respect to water issues and risk management.

• SMM will align its business strategy with identified risks and opportunities.
• SMM will monitor and report on our efforts and results.
• SMM will engage with key stakeholders.

5. Business Strategy and Operations

Water is essential to our business. It is vital we drive responsible water use across our operations, minimize our environmental impact on water resources and invest in projects and technology for water management.

• We will consider water impacts and integrate water management into our business strategy and operational decisions.
• We will identify and proactively manage water related risks and opportunities including those associated with water quality, water scarcity.
• We will support and implement water stewardship initiatives and projects that promote better water use, reduce freshwater use, have effective catchment management and contribute to improved water security and sanitation. We will ensure provision and access to clean and safe drinking water and sanitation facilities at all our sites.
• We will develop and invest in technology and innovation for effective water management.

6. Monitoring & Reporting

We are committed to disclosing our water performance and progress towards our targets so that stakeholders can be informed and actively involved in our sustainability journey.

• We will set and regularly review water management objectives and set context-based water targets.
• We will proactively monitor our water performance and collect water consumption data.
• We will publicly report on our water management performance, material risks and provide updates on progress against our targets using consistent industry metrics and recognized approaches.

7. Engagement

Access to water is critical to the communities where we operate. While we recognize and continue to focus on the positive impacts that our management system can facilitate, the risks associated with broader social and economic water-related impacts in the region.
We recognize the importance of working with our stakeholders to promote effective water governance and stewardship. We will support collective action to improve water policies, regulations and address shared water challenges in communities and value chains.

• We will advocate for responsible water usage practices and increase water stewardship awareness with our key stakeholders, including employees, suppliers and customers.
• We will educate all officers and employees of the Group on understanding this policy and water-related initiatives.
• We will engage with communities and stakeholders who may be affected by a site’s water use and wastewater discharge to address shared water management issues.
• We will establish and maintain a grievance mechanism that is accessible to our stakeholders.
• We will engage with governments and local authorities in the areas where we operate on water-related public policy and regulation.

8. Review

This water policy will be reviewed periodically by the Chairman of the Nature Conservation and Restoration Subcommittee and, if necessary, changes will be approved by the Board of Directors.

Nobuhiro Matsumoto
President and Representative Director
Amended on April 1, 2025