In the 2019 Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) Global Assessment Report on Biodiversity Conservation Challenges, the scientific evidence points to the global degradation of nature and the acceleration over the past 50 years of the factors that cause natural change. With the adoption of the "Kunming-Montreal Biodiversity Framework" at the Conference of the Parties to the Convention on Biological Diversity (COP15) in 2022, companies are now expected to engage in socio-economic activities aimed at halting and reversing biodiversity loss by 2030, the so-called "nature positive."
The preservation of biodiversity is an element that forms the basis of our approach to business. We clarify this point both internally and externally by stating, “We will be more considerate of biodiversity and work to live in the harmony with nature”, in the Article 5 of our Code of Conduct. In our Environmental Policy we state, “We engage in business activities that take ecosystems into account throughout our value chain, including the development of natural resources.” In light of changes in the social environment regarding biodiversity issues, since it is considered necessary to make our policy more concrete, we have established a Biodiversity Conservation Policy as a detailed version of our Environmental Policy.

Understanding Dependencies and Impacts on Biodiversity from Business Activities

Although the tools used in the LEAP approach are commonly used worldwide, we conducted a survey on the habitat of rare species at our domestic locations using the database of vascular plant specimens (seed plants and pteridophytes) owned by the National Museum of Nature and Science in order to confirm the existence of rare species based on detailed analysis.
The survey covered a total of 58 locations, including manufacturing sites directly operated in our company, renewable energy power generation areas, abandoned mines, and company-owned forests. The following activities were carried out.
 

1. For company land, the relevant secondary regional mesh (about 10 km on 1 side) is extracted based on GIS data or address. If it spans multiple meshes, all applicable meshes are extracted (70 meshes).
2. Data corresponding to the mesh of company land is extracted from the database of vascular plant specimens (seed plants and pteridophytes) owned by the National Museum of Nature and Science.
3. Specimen records that match either the 2020 the Ministry of the Environment Red List or the prefectural Red List are extracted.

As a result of the survey, a total of 1,642 specimens were recorded as red-listed species in the 70 secondary area meshes where company land is located.
By red list, 577 specimens were listed in both the Ministry of the Environment and prefectures, 138 were listed only in the the Ministry of the Environment Red List, and 927 were listed only in the prefectural Red List.
Some specimens were identified in the 1800s and early 1900s, and some species are not known if they can be identified at present. Therefore, we will consider conducting field surveys to confirm the habitat status of many rare species at sites where specimens were found.

Analysis of Risks and Opportunities

For the analysis of risks and opportunities, based on the results of ENCORE and the fact that these businesses are considered to have a large contact with nature, we selected the hydroelectric power generation, geothermal power generation, and acid mine drainage treatment. The non-ferrous metal smelting business was selected by taking into account the large proportion of sales in our group and the size of risks by nature and impacts by opportunities. Of risks and opportunities identified in the analysis, priority risks and opportunities are shown in the table below.

We have appointed CSuO to segregate our management strategies, including responding to the issue of Sustainability issues, including addressing biodiversity conservation. We have also established a Safety, Environment & Quality Dept. of the Corporate to plan and promote the Group’s strategic initiatives for risks and opportunities related to biodiversity conservation . In addition, the Global Environment Committee, which the Safety, Environment & Quality Dept. serves as the secretariat, promotes internal educational activities related to biodiversity conservation, establishes activity policies, identifies nature-related issues based on the TNFD recommendations, assesses and manages nature-related risks and opportunities, prepares activity plans for a nature-positive society, and other discussions and information sharing related to biodiversity conservation. These activities are reported to the Strategic Management Committee and the Board of Directors for appropriate monitoring. (Matters for deliberation by and reporting to the Strategic Management Committee and Board of Directors)
 

The Board of Directors goes beyond the monitoring of sustainability initiatives. The Sustainability Committee, an advisory body to the Board of Directors, was established to actively consider the direction of sustainability efforts from different perspectives and present its findings internally. The committee monitors the Company’s action related to climate change, considers the methods and issues involved, and reports its findings to the Board of Directors.

While critical risks inherent to each field of business are identified by individual business divisions and critical risks inherent to each site are identified by individual sites compulsively, each corporate department identifies and evaluates serious, high priority risks which share a high degree of commonality across the Group and which are expected to have a severe impact on the Group’s business management..
Each Critical risks is reviewed and selected annually by the Strategic Management Committee in which all executive officers participate. The response plan for these Critical risks is reported and deliberated by the Sustainability Council, and the status of its efforts is shared at meetings such as the Sustainability Review.
The CHRO (Chief Human Resource Officer) is responsible for overall risks management activities, and these activities are managed independently of the Audit Committee.
In terms of education, we strive to improve the quality of our activities by providing educational content that covers everything from an overview of risks Management to specific approaches to management, and by holding seminars to improve risks's sensitivity by external lecturers.
We recognizes nature-related issues as one of the major risks issues that may have an impacts important impact on our group's business performance and financial position, and promotes these issues in its risks management activities.
Details of our group's risks management structure and operational status, and the selection process for Critical risks are disclosed in "Enhancing Internal Control through Group Governance" in our company Sustainability Report 2024.

We are also promoting initiatives related to climate change and resource recycling, and the targets set in relation to nature are as follows. We will consider indicator targets for items not included in this page based on the results of this assessment.

GHG → Please refer to "Climate Change (Disclosure in Accordance with TCFD) - Indicators and Targets."
Plastics → Please refer to "Pollution Prevention - Waste Management."

We depend on imports of copper concentrates, our main raw material, from overseas mines, and are investing in overseas mines to ensure stable procurement, but the impact on biodiversity is particularly noticeable at the overseas mines in which we invest. Therefore, the MMC Group places importance on compliance with laws and regulations and the concept of "Social License to Operate," and at each mine, we are working on reclamation at all mining sites where we conduct business activities to minimize the impact on the ecosystem. Each mine strives to minimize the impact on the ecosystem. Each mine conducts environmental impact assessments in accordance with the laws of the countries and regions where it operates and international agreements such as the "Ten Principles for Sustainable Development," and formulates appropriate closure plans through dialogue with local governments, local residents, and other stakeholders, in order to ensure smooth and appropriate responses to future mine closures, etc. We are also engaged in dialogue with local governments, local residents, and other stakeholders to formulate an appropriate closure plan.
In our business activities, the impact on biodiversity is particularly notable at the overseas mines from which we procure raw materials. At the copper mines in which we have invested and are our important suppliers (Copper Mountain Mine in Canada, Escondida Mine in Chile, Los Pelambres Mine in Chile and Mantovelde Mine in Chile), an Environmental Impact Assessment was appropriately conducted before the mining operations commenced and environmental monitoring has continued ever since. In the development project Zafranal Project (Peru), environmental permits were obtained in May 2023, and in Namosi Project (Fiji), basic studies for environmental impact assessment are being conducted and data is being collected for biodiversity conservation.
Copper Mountain is committed to biodiversity conservation management and reclamation, focusing on minimal disturbance and increasing areas that can be reclaimed prior to site closure. More specifically, Copper Mountain has developed strategies for achieving end land use and reclamation objectives, including improving physical stability, water quality and water-course protection, sediment retention and erosion control, soil salvage and storage, suitable revegetation, and the eradication of invasive species. These strategies, along with our plan to manage biodiversity conservation for vegetation, wildlife, water, and aquatic components, and a detailed monitoring plan for reclamation, are outlined in Copper Mountain’s Biodiversity Conservation Management Plan.
Mantoverde submits biodiversity data obtained through development projects to the Global Biodiversity Information Facility (GBIF), a biodiversity information sharing network. Specifically, we are studying the diet of the guanaco, the range of the fox, and the collection and preservation of seeds of unique species.
As an investor, we confirm in advance with operators of the mines that these initiatives will be taken, and encourage them to take such initiatives. In addition, when we procure materials from a mine in which we do not invest, we confirm that considerations are given to natural protected areas and biodiversity is preserved, in accordance with the CSR Procurement Standards of the Metals Company.

In 2015, we established Appi Geothermal Energy Corporation in conjunction with Mitsubishi Gas Chemical Company, Inc. to the west of Appi Highlands in Hachimantai City, Iwate. We were joined by Electric Power Development Co., Ltd. in 2018, and the three companies are promoting the project towards the launch of the operation. The project involves the operation of a 14,900 kW geothermal power plant in 2024. Appi Geothermal Energy Corporation began procedures for an Environmental Impact Assessment in 2015, and studied, predicted, and assessed the impact of the construction of the Appi Geothermal Power Plant on the surrounding environment. The company received approval for the final environmental impact statement from the Minister of Economy, Trade and Industry in January 2018 and began construction of the plant in August 2019.

We own a hydroelectric power plant immediately below the Moriyoshi Dam in the Komata River, a branch stream of the Ani River in the reservoirs along the Yoneshiro River in Kita-Akita City, Akita. In May 2019, we began construction on the New Komatagawa Hydroelectric Power Plant (rated output: 10,326 kW), a hydroelectric power plant that will use the discharged water which was used for power generation at the existing plant. When planning the construction of the new power plant, we undertook a voluntary environmental assessment to determine the impact on the surrounding environment. We are also creating a new plan to ensure that the flow rate of surplus from the new plant will be appropriate for the river to preserve the surrounding river environment. In addition, we will carry out eco-friendly construction work. We will use power supplied from the existing hydroelectric power plant, a renewable energy, for construction work on the headrace tunnel with TMB method. We will also engage in environmental initiatives including the recycling trees that were felled to construct the new power plant.