CDP 2014 Investor CDP 2014 Information Request2014.pdf · 2014-12-02 · CDP CDP 2014 Investor CDP 2014 Information Request Sims Metal Management Module: Introduction Page: Introduction

CDP CDP 2014 Investor CDP 2014 Information Request

Sims Metal Management

Module: Introduction

Page: Introduction

CC0.1

Introduction

Please give a general description and introduction to your organization. Sims Metal Management (SimsMM) is the world's largest and leading global recycling company with operations in North America, Australasia, South Africa, Middle East (Dubai), Europe and India, supplemented by trading offices in Asia and the only recycling company to be selected as one of the 100 Most Sustainable Companies in the World by the World Economic Forum, for 5 consecutive years as well as being an index component in the Dow Jones Sustainability World Index. SimsMM operates predominantly in the secondary metal, plastics and electronics recycling industry, including secure data destruction and refurbishment of electronic equipment. Its core businesses include: - 1. Secondary ferrous metal recycling, which comprises the collection, mechanical processing and international trading of iron and steel secondary raw materials. - 2. Secondary non-ferrous metals recycling, which comprises the collection, processing and trading of other metal alloys and residues, principally aluminium, copper, brass, stainless steel and nickel bearing materials. - 3. Sims Recycling Solutions (SRS), which comprise the provision of environmentally responsible solutions for re-use, security and disposal of post-consumer electronic and electrical products. - 4. Secondary processing, comprising one small value-added processing facilities for the melting, refining and recovery of precious metals in the USA; the reclamation, beneficiation and reprocessing of plastics. - 5 Sims Municipal Recycling - recycling around 1000 tonne/day of municipal waste from New York City and 6 - Landfill Management Services (LMS) a 50% owned JV being Australia's leading supplier of renewable energy and carbon abatement, specialising in the recovery of land fill methane and its conversion into renewable energy. Following the introduction of carbon legislation in Australia, LMS accounted in F13 for more than half of the Australian Carbon Credits issued,generating more than 340,000MWh of renewable energy and abating an estimated 2 million tonnes of CO2.

CC0.2

Reporting Year

Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been

offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosed

Fri 01 Jul 2011 - Sat 30 Jun 2012

Sun 01 Jul 2012 - Sun 30 Jun 2013

CC0.3

Country list configuration

Please select the countries for which you will be supplying data. This selection will be carried forward to assist you in completing your response.

Select country

Australia

New Zealand

Papua New Guinea

United Kingdom

Sweden

Netherlands

Germany

Belgium

United States of America

Canada

CC0.4

Currency selection

Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. AUD ($)

CC0.6

Modules

As part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component manufacture sectors, companies in the oil and gas industry, companies in the information technology and telecommunications sectors and companies in the food, beverage and tobacco sectors should complete supplementary questions in addition to the main questionnaire. If you are in these sectors (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view the questions first, please see https://www.cdp.net/en-US/Programmes/Pages/More-questionnaires.aspx.

Further Information

Module: Management

Page: CC1. Governance

CC1.1

Where is the highest level of direct responsibility for climate change within your organization?

Individual/Sub-set of the Board or other committee appointed by the Board

CC1.1a

Please identify the position of the individual or name of the committee with this responsibility

SHEC – (Safety, Health, Environment, Community) Committee of the Sims Metal Management Board of Directors The SHEC Committee is chaired by Jim Thompson - an independent non Executive Director and consists of CEO Dan Dienst and 2 other independent non-executive directors (Chris Renwick & Heather Ridout) and 1 non-independent non-executive director Mr. Sukagawa, retiring in April 2013 and replaced by Tom Sato also non-executive director. The SHEC Committee of the Board is supported by three Regional SHEC Committees (North America, APAC and Europe) as well as the Global Director, Sustainability, Peter Netchaef who reports directly to the CEO,

CC1.2

Do you provide incentives for the management of climate change issues, including the attainment of targets?

Yes

CC1.2a

Please provide further details on the incentives provided for the management of climate change issues

Who is entitled to benefit from these incentives?

The type of incentives

Incentivized performance indicator

Other: Environment/sustainability managers

Monetary reward Development and meeting of energy reduction targets

Energy managers Monetary reward Development and implementation of energy reduction initiatives

Business unit managers Monetary reward Meeting of energy target reductions

Facility managers Monetary reward Meeting of energy reduction targets

Further Information

Page: CC2. Strategy

CC2.1

Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

Integrated into multi-disciplinary company wide risk management processes

CC2.1a

Please provide further details on your risk management procedures with regard to climate change risks and opportunities

Frequency of monitoring

To whom are results

reported

Geographical

areas considered

How far into the future are risks

considered?

Comment

Six-monthly or more frequently

Individual/Sub-set of the Board or committee appointed by the Board

all areas of the Company operations

1 to 3 years

While 1-3 years are the direct scrutiny of impacts, longer term issues are considered in terms of likely operational and financial impacts. However, the longer the period, the greater the uncertainty surrounding likely outcomes.

CC2.1b

Please describe how your risk and opportunity identification processes are applied at both company and asset level

Each operating region (Asia Pacific/Europe/NA has for several years had in place a formal energy efficiency team, which monitors and report on energy initiatives in accordance with set targets and consistent with the Company's Energy Hierarchy of efficiency, replacement and offsets. Reporting on these parameters form part of reporting under the Safety, Health, Environment and Community umbrella, is applied at operational level and monitored by the regional SHEC Directors under the guidance of the Global Director - Sustainability.

CC2.1c

How do you prioritize the risks and opportunities identified?

The risks and opportunities are evaluated on a return on investment basis. It is part of the Company's articulated formal energy and carbon policy to adopt any project with a payback of less than 3 years. (See Energy and Carbon Policy on website: www.simsmm.com)

CC2.1d

Please explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a process in future

Main reason for not having a process

Do you plan to introduce a process?

Comment

CC2.2

Is climate change integrated into your business strategy?

Yes

CC2.2a

Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process

Driving Customer Behaviour: Use of recycled materials is by far the most efficient way of reducing energy consumption and associated carbon emissions in manufacturing. Research by Imperial College, London show that the materials recycled by SimsMM in 2013 saved more than 12.9 million MWh of energy and avoided 13.4 million tonnes of CO2 being emitted, when compared with the use of virgin materials. This is enough to off-set the emissions of around 3.9 million average homes or roughly equivalent to that absorbed by 13.4 million trees, over a 100 year lifespan. This, combined with the international business and regulatory response to aspects of climate change is therefore driving an increased demand for recycled raw materials for SimsMM. With E-waste increasing at a rate of nearly 17 times that of traditional waste streams, there has also been a very significant rise in demand for recycling and refurbishment services to this sector as producers

increase their take-back responsibility and monitoring of their end of life or outdated electronic products that would otherwise end up in landfill. While some countries such as the UK and Europe have strong regulations, other countries have little or no legislation, but producer brands recognise this inconsistency in country legislation as a risk to their reputations and so are increasingly moving to behave in a consistent way - regardless of the regulatory requirements Accordingly, SimsMM has–significantly expanded- its processing capacity of E waste to meet this increasing demand by creating new facilities in Australia, the UK, Europe, India, North America, South Africa as well as the emerging markets in the Middle East (Dubai). There also continues to be an increase in the demand for most recycled metals including aluminium, as it significantly reduces the amount of energy required when compared to the processing of virgin raw materials. The prominent sustainability credentials of SimsMM, combined with access of energy efficient barge and port facilities in the City of New York, was also a significant factor in the Company winning the long term contract for the collection and processing of recyclables for that city Increased Baseline Costs of all Forms of Energy: The current and future trends for significant operational cost increases as a result of rising energy prices in all regions has led to a rigorous capital expenditure analysis process for all new capital expenditure in operational areas and transport that specifically includes the assessment of future energy costs as well as projected assessments of the likely reductions in payback time lines that result from such projected increases. This is seen specifically in the overhauling of the shredder programs in each region, investment in new hybrid technology for site equipment and the tracking and management of transportation contracts including requirements on external third parties to manage their energy consumption. Continuation of Merger and Acquisition Activity: There remain significant gains to be made with the consolidation of the recycling industry globally. Our M & A activity over the last decade has shown that we are focused on acquiring strategic assets that strengthen our access to recycling materials and markets but also allow us to take advantage of increasing the efficiency of income cost/benefit ratios and lower operating costs, including fuel efficiency. Increase in Investor interest: Over the last three years there has been a notable increase in investor interest in SimsMM, partly due to a growing understanding of SimsMM as a leading sustainable company (as reflected in our fifth year continued nomination by the World Economic Forum as one of the world’s100 most sustainable companies), but also because of increased investor recognition that SimsMM successfully has integrated the sustainability agenda into its business model, providing a solid risk management approach to all aspects of our business in an ever and fast changing world.. Investors also recognise that we are a growth organisation in an industry that will become even more important as countries, business and individuals adapt to the fundamental issues of a carbon (energy, water and other resources) constrained world. Other Industry Developments: P. Netchaef , SimsMM Global Director, Sustainability remain a member of the Australian Governments’ committee on the Stockholm Convention on POP’s as well as an adviser on several government initiatives on waste reduction and increased resource efficiency. Because of its prominent position as the world’s largest recycling company, the company is recognised as an important stakeholder and expert on resource efficiency, waste reduction and energy and carbon savings. SimsMM was honoured to be selected as “Carbon Performance Leader” as well as “Best of Sector” (materials) by the CDP among the ASX200 and NZ50 companies in 2012 as well as an index component in the Dow Jones Global Sustainability Index for the second time in 2013. Also selected for inclusion in the NYSE Euronext and Vigeo Index of the world's 120 most sustainable companies.

CC2.2b

Please explain why climate change is not integrated into your business strategy

CC2.3

Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)

Direct engagement with policy makers Trade associations Other

CC2.3a

On what issues have you been engaging directly with policy makers?

Focus of legislation

Corporate Position

Details of engagement

Proposed legislative solution

Carbon tax Support with major exceptions

SimsMM has significantly engaged with the UK Government on the CRC, which unfortunately has ended up as a simple tax, with proceeds going to consolidated revenue.

The ultimate purpose of a carbon tax is to punish poor energy behaviour. However, to achieve a transformation of energy delivery, the proceeds must be used to stimulate alternative energy sources that are sustainable and price competitive. Too often, proceeds are simply absorbed into general tax revenue, loosing both transparency and direct stimulus of the alternative energy sectors.

Energy efficiency

Support

SimsMM has an articulated hierarchy of energy use, based on efficiency, replacement with renewables and as a last resort, offsets and promotes this approach at all levels of engagement with policy makers.

Energy efficiency is in everybody's interest and should be incentivised. However, it very quickly becomes a diminishing return business and early movers should not be penalised. Equally, shareholding companies cannot spend shareholders money, where the return on investment cannot be justified

Clean energy generation

Support

SimsMM has a green energy company LMS, which supply significant green energy by converting landfill methane to renewable energy. LMS is recognised as an expert in its field and its expertise is keenly sought by government.

Abundant and clean energy is crucial for the continuation and sustainability of business, but the tendency of many governments to simply collect carbon tax revenue, without equal support for alternative energy sources, continues to mean that sustainable energy sources are not price competitive.

CC2.3b

Are you on the Board of any trade associations or provide funding beyond membership?

No

CC2.3c

Please enter the details of those trade associations that are likely to take a position on climate change legislation

Trade association

Is your position on climate change consistent with theirs?

Please explain the trade association's position

How have you, or are you attempting to, influence the position?

CC2.3d

Do you publically disclose a list of all the research organizations that you fund?

CC2.3e

Do you fund any research organizations to produce or disseminate public work on climate change?

CC2.3f

Please describe the work and how it aligns with your own strategy on climate change

CC2.3g

Please provide details of the other engagement activities that you undertake

SimsMM engages both directly and indirectly with policy makers through trade organisations, external third parties and NGO’s. In particular we pursue development of good legislative policy frameworks that encourage businesses to change behaviour to positively impact climate change risks and adopt energy efficient business practices. For example we continue to work with the UK Government on the continued development of the CRC scheme as well as on resource efficiency and associated energy benefits and how to remove government “red tape” which hinders efficient recycling. We engage actively with the Australian and US federal and

State Governments on the significant contribution that recycling and reuse of resources mean in terms of energy efficiency and the preservation/reuse of resources and our renewable energy company, LMS is a significant and prominent member in the renewable energy sector in Australasia. In broader support of industry efforts, the Company is a member of several relevant industry associations in the regions in which we operate and are constantly assessing the news and updates from these associations on political and industry developments in regard to new schemes for improvements in reporting, subsidies, new taxes and also industry improvements in business practices. Sims Recycling Solutions (UK) is the only recycling company to have achieved the Carbon Trust Standard, although we have discontinued our membership, since the changes implemented by the UK Government to the CRC has undermined this initiative. Other third party organisations: P. Netchaef, Global Director Sustainability is a member of the Australian Government delegation on the Stockholm Convention and also liaise with a number of senior government officials on matters of sustainable energy and resource efficiency. In all operating jurisdictions, SimsMM has close involvement with a number of key NGO organisations, ranging from smaller local interest groups to larger organisations such as The Bay Keeper (USA) and the Total Environment Centre (Australia).

CC2.3h

What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?

SimsMM Carbon and Climate Change Strategy is managed by a global Board Committee (Safety Health Environment and Community - SHEC) that ensures strategic alignment and a consistent approach and direction in each of regional teams. The 3 Regional SHEC Directors, conduct monthly update and progress meetings via telephone and meet annually face-to-face to discuss strategic direction and progress on formal action plans under the direction of the Global Director, Sustainability, Mr. Peter Netchaef. In addition, each region has a dedicated energy team, specifically tasked with providing targets and goals, consistent with the Company's energy hierarchy of efficiency, replacement and offsets and that these are aligned with operational practice. Results and progress is reported annually in the Company's public sustainability report.

CC2.3i

Please explain why you do not engage with policy makers

Further Information

Page: CC3. Targets and Initiatives

CC3.1

Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year?

Absolute and intensity targets

CC3.1a

Please provide details of your absolute target

ID

Scope

% of emissions in

scope

% reduction from base

year

Base year

Base year emissions

(metric tonnes CO2e)

Target year

Comment

Abs1 Scope 1+2

100% 15% 2009 272297 2020

This reduction target for SimsMM was revised following the merger of Sims Group with Metals Management Inc in 2008/09 FY. Our existing targets have been absolute reduction targets and while these have been achieved, we face problems going forward: Sims Metal Management has had spectacular growth over the last 10 years, mainly as a result of growth by acquisition and this trend continues. Absolute energy/carbon reduction is difficult to maintain in these circumstances. Therefore, the Company continues to examine a suitable metric going forward. Traditional energy/emission targets for our sector tend to evolve around emissions per EBIT or some similar financial indicator. As a recycling company, Sims Metal Management is subject to extreme commodity price variations that affect our earnings profile from year-to-year and hence this metric is inappropriate. Instead we are currently leaning towards metrics related to CO2 emission per sales tonnes and it is this metric we report on in our Annual Sustainability Report. For the purpose of continuity and for the purpose of this submission, we have chosen to report against both metrics.

Abs2 Scope 1

100% 15% 2009 122660 2020

This reduction target for SimsMM was revised following the merger of Sims Group with Metals Management Inc in 2008/09 FY. Our existing targets have been absolute reduction targets and while these have been achieved, we face problems going forward: Sims Metal Management has had spectacular growth over the last 10 years, mainly as a result of growth by acquisition and this trend continues. Absolute energy/carbon reduction is difficult to maintain in these circumstances. Therefore, the Company continues to examine a suitable metric going forward. Traditional energy/emission targets for our sector tend to evolve around emissions per EBIT or some similar financial indicator. As a recycling company, Sims Metal Management is subject to extreme commodity price variations that affect our earnings profile from year-to-year and hence this metric is inappropriate. Instead we are currently leaning towards metrics related to CO2 emission per sales tonnes

ID

Scope

% of emissions in

scope


year

Base year

Base year emissions

(metric tonnes CO2e)

Target year

Comment

and it is this metric we report on in our Annual Sustainability Report. For the purpose of continuity and for the purpose of this submission, we have chosen to report against both metrics.

Abs3 Scope 2

100% 15% 2009 149636 2020

This reduction target for SimsMM was revised following the merger of Sims Group with Metals Management Inc in 2008/09 FY. Our existing targets have been absolute reduction targets and while these have been achieved, we face problems going forward: Sims Metal Management has had spectacular growth over the last 10 years, mainly as a result of growth by acquisition and this trend continues. Absolute energy/carbon reduction is difficult to maintain in these circumstances. Therefore, the Company continues to examine a suitable metric going forward. Traditional energy/emission targets for our sector tend to evolve around emissions per EBIT or some similar financial indicator. As a recycling company, Sims Metal Management is subject to extreme commodity price variations that affect our earnings profile from year-to-year and hence this metric is inappropriate. Instead we are currently leaning towards metrics related to CO2 emission per sales tonnes and it is this metric we report on in our Annual Sustainability Report. For the purpose of continuity and for the purpose of this submission, we have chosen to report against both metrics.

CC3.1b

Please provide details of your intensity target

ID

Scope

% of emissions in scope


year

Metric

Base year

Normalized base year emissions

Target year

Comment

Int1 Scope 1+2

100% 15% metric tonnes CO2e per

2009 0.24 2020 Emissions of CO2 per tonne rose slightly from 18kg in F12 to just under 0.20 in F13. This reflected decreased efficiency in

ID

Scope

% of emissions in scope


year

Metric

Base year

Normalized base year emissions

Target year

Comment

metric tonne of product

production due to lower throughput volumes. This notwithstanding, the target has been exceeded for some years.

Int2 Scope 1+2

100% 15% Other: GJ per tonne of product sold

2009 0.25 2020

Energy consumption per tonne rose slightly from 0.188GJ/tonne in F12 to 0,206 GJ/tonne in F13. This reflected decreased efficiency in production due to lower throughput volumes. This notwithstanding, the target has been exceeded for some years.

CC3.1c

Please also indicate what change in absolute emissions this intensity target reflects

ID

Direction of change

anticipated in absolute Scope 1+2 emissions

at target completion?

% change anticipated in absolute Scope 1+2 emissions

Direction of change

anticipated in absolute Scope 3 emissions at

target completion?

% change anticipated in absolute

Scope 3 emissions

Comment

Int1 Decrease No change

Based on the base year of 2009, the adopted 15% reduction target represents a scope1 and 2 CO2 reduction of 40,845 tonnes. However, as mentioned above, this target was achieved several years ago and has been bettered. Emissions in F13 were 253,657 tonnes, compared to 319,256 tonnes in the base year of 2009. This is a total reduction of 65,599 tonnes of CO2 emissions to date.

CC3.1d

For all of your targets, please provide details on the progress made in the reporting year

ID

% complete

(time)

% complete (emissions)

Comment

Abs1 100% 100%

The total CO2 emissions for F13 was 253,657 tonne and for F12 it was 256,215 tonnes, a further reduction of 1 percent. The emissions for both years are below the base year of 2009, and hence the target has been fully achieved. This aside and as noted in CC3.1a, absolute targets are not ideal going forward. Sims Metal Management has had spectacular growth over the last 10 years, mainly as a result of growth by acquisition and this trend continues. Absolute energy/carbon reduction makes little sense in these circumstances. Therefore, the Company is currently examining a suitable metric going forward. Traditional energy/emission targets for our sector tend to evolve around emissions per EBIT or some similar financial indicator. As a recycling company, Sims Metal Management is subject to extreme commodity price variations that affect our earnings profile from year-to-year and hence this base metric is also inappropriate. Instead we are currently leaning towards metrics related to CO2 emission per sales tonnes as it reflects operational activity and it is this metric we report on in our Annual Sustainability Report.

CC3.1e

Please explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years

CC3.2

Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party?

Yes

CC3.2a

Please provide details of how the use of your goods and/or services directly enable GHG emissions to be avoided by a third party

The use of secondary raw materials in preference to virgin is one of the most effective ways of reducing energy consumption and the associated GHG emissions. As the world's largest recycling company, the use of materials recycled by SimsMM makes a very significant contribution to a global reduction in CO2 emissions. Using data compiled by the Imperial College in London, the ferrous, non-ferrous, plastics, electronics and other materials collected and recycled by SimsMM in 2013 avoided 13.4 million tonnes of CO2 equivalent being released to the atmosphere through the use by third parties of our products, a ratio of 1 in 53.

CC3.3

Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and implementation phases)

Yes

CC3.3a

Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development

Number of projects

Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 5

To be implemented* 2 80

Implementation commenced* 1 58.3

Implemented* 2 8554.6

Not to be implemented 1

CC3.3b

For those initiatives implemented in the reporting year, please provide details in the table below

Activity type

Description of activity

Estimated annual CO2e

savings (metric

tonnes CO2e)

Annual monetary

savings (unit currency - as specified in

CC0.4)

Investment required (unit currency - as specified in

CC0.4)

Payback period

Estimated lifetime of

the initiative,

years

Comment

Transportation: fleet Replacement to more fuel efficient trucks - US

541.4 1-3 years 5-10 years

Low carbon energy installation

Installation of Solar arrays - Brooklyn and Claremont US

93.0 1-3 years 10 plus years

Transportation: fleet Replacement of fork lift truck with Hybrid units - UK

58.3 4-10 years

Energy efficiency: Processes

Process optimisation at various sites in the UK and Australia.

7920.2 4-10 years

CC3.3c

What methods do you use to drive investment in emissions reduction activities?

Method

Comment

Compliance with regulatory requirements/standards

Within Australia there is a requirement under the Energy Efficiency Opportunities Act to implement energy efficiency measures that have a less than 3 year payback period. This payback period has been adopted as a guideline within our internal energy policy also. The UK encourages energy efficiency through the CRC legislation which requires our businesses in the UK to pay a tax on energy per MWh

Dedicated budget for energy efficiency

As a recycling company, all of the company's operational expenditure is targeted at better recovery resulting in energy efficiency achieved by use of our products by our customers. In F13, approximately $25 million of capital expenditure was directly targeted at improving energy and operational efficiencies. However, SimsMM is a publicly listed company and as such management is obliged to ensure the most efficient allocation of shareholder's funds. Energy efficiency is as a consequence subject to the same evaluation criteria as applies to all investments. As articulated in our Energy and Carbon

Method

Comment

Policy (available on www.simsmm.com ) it is company policy to approve energy/carbon efficient measures with a payback of 3 years and less

Dedicated budget for low carbon product R&D

As a recycling company, all products that SimsMM produce result in very significant carbon emissions reduction, as they are used in preference to virgin ore, new plastics and by extending life of existing electronic components and products. The total carbon savings from the use of our products in 2013 were a staggering 13.4 million tonnes of CO2, enough to offset the total emissions profile of many smaller countries. It can therefore reasonably be argued that the Group's entire operating budget is invested in carbon emissions reduction.

Partnering with governments on technology development

In the USA there have been municipal incentive programs to introduce alternate renewable energy sources. The UK is also working with Government on energy efficiency measures, including ongoing trials of the UK’s first hydrogen powered fork trucks and the replacement program of operating equipment, including hybrid machinery, smart metering of energy and water at our facilities and automated energy systems.

Financial optimization calculations

In all regions, the company has dedicated energy teams, which directly and regularly interface with the operational teams. This occurs at planning as well as operational levels, when new equipment is planned or when retro fitting of existing equipment takes place. With power being a significant and increasing cost component, the teams work on optimisation models for equipment, taking into account existing and projected power costs, peak demand periods and reducing power consumption where operationally possible and beneficial.

CC3.3d

If you do not have any emissions reduction initiatives, please explain why not

Further Information

Page: CC4. Communication

CC4.1

Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Publication

Page/Section reference

Attach the document

In mainstream financial reports (complete) Annual Sustainability Report

In other regulatory filings (complete) NGER and EEO act reporting (Australia)

In other regulatory filings (complete) CRC reporting (UK)

In voluntary communications (complete) Reporting to Dow Jones Sustainability Index

In voluntary communications (complete) Vigeo NYSE Euronext

In voluntary communications (complete) TruCost

Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1

Have you identified any climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments

CC5.1a

Please describe your risks driven by changes in regulation

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Carbon taxes

SimsMM is not an energy intensive user by comparison to most industry sectors and hence the overall impact of carbon taxes on operational cost, while noticeable is relatively low. The company is not directly affected by the Australian Carbon tax legislation, nor the European carbon trading scheme, and at the present time, carbon taxes looks unlikely at a federal US level. The company is captured by the UK CRC legislations, with direct costs in the order of £350,000 (F12).

Increased operational cost

Direct Virtually certain

Low

Fuel/energy taxes and regulations

Fuels are a major contributor to our overall CO2 emissions profile. We anticipate that there will be an increase in both the cost of electricity and fuel in all jurisdictions in which we operate. For example: Fuel costs in Australia and Europe have risen by approximately 20% over the last 3 years, a trend we expect to continue. Apart from these direct commercial rises, flow-on costs from the carbon tax in Australia has increased costs in Australia


Direct Very likely Medium

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

by approximately Aus$1.5 million and is expected to be slightly higher this year at Aus$2 million..

Uncertainty surrounding new regulation

The implications of the UK CRC scheme are well understood and accounted for as part of our operational costs. In the US, the present political climate seems unlikely to give rise to carbon taxes. In Australia, SimsMM is not captured under the current legislation, but it remains to be seen what a likely change of government will do following the federal election in September, 2013. The opposition has vowed to abolish the current carbon tax.


Direct Unlikely Low

CC5.1b

Please describe your risks that are driven by change in physical climate parameters

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Uncertainty of physical risks

Potential to damage of operational buildings due to

Inability to do business

Direct About as likely as not

Low

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

extreme weather events, but with a diverse infrastructure material for processing is simply re-diverted and overall impact is low as demonstrated during the recent severe floods in Australia and the US.

Change in precipitation extremes and droughts

Access and cost of water for shredders in Australia, where water use can be restricted in long periods of drought. However, SimsMM is not a large user of water and hence this is not a major operational exposure.



Low

CC5.1c

Please describe your risks that are driven by changes in other climate-related developments

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated Financial

Implications

Management

method

Cost of

management

Uncertainty in market signals

SimsMM relies on market signals that encourage and support other businesses and individuals to recycle material or purchase recycled materials. While uncertainty from

Reduced demand for goods/services


Low

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated Financial

Implications

Management

method

Cost of

management

government legislation is ever present, the continuing and universal increase in energy cost, continue to drive the use of recycled materials in preference to virgin

CC5.1d

Please explain why you do not consider your company to be exposed to risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1e

Please explain why you do not consider your company to be exposed to risks driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1f

Please explain why you do not consider your company to be exposed to risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Page: CC6. Climate Change Opportunities

CC6.1

Have you identified any climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Opportunities driven by changes in other climate-related developments

CC6.1a

Please describe your opportunities that are driven by changes in regulation

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

CC6.1b

Please describe the opportunities that are driven by changes in physical climate parameters

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

CC6.1c

Please describe the opportunities that are driven by changes in other climate-related developments

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Reputation

SimsMM as the largest recycler in the world is the recycler of choice for industry and governments in our current jurisdictions of the USA, Asia Pacific and Europe including UK. As the impact of increased energy costs affects primary and secondary manufacturing, the demand for energy efficient secondary raw materials increase.

Increased demand for existing products/services

1 to 3 years

Direct Very likely Low-medium

Reputation

While the continued financial turmoil in the world affects the company's short term performance, there is significant interest and support for SimsMM and

Increased stock price (market valuation)

1 to 3 years

Direct Very likely Medium

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

its business activities. As Governments continue to legislate in regard to waste management financial institutions will become interested in both the debt and equity aspects of the SimsMM growth strategy.

Changing consumer behaviour

Individuals and businesses are becoming more aware of the need to use the earth's resources in a careful and cost efficient way and are increasing their recycling behaviour without regulatory intervention


3 to 6 years

Direct Likely Medium

Changing consumer behaviour

Globally business will be anticipating ways in which they can use recycled materials. We are looking at product innovation - especially increasing the reclaiming of raw materials from e waste, including increased plastics recovery and value. This is well underway, with recycling recoveries from for example motor vehicles nearing 90%. This


1 to 3 years

Indirect (Supply chain)

More likely than not

Medium

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

compares to historical recoveries 15 years ago of around 75-80%.

CC6.1d

Please explain why you do not consider your company to be exposed to opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

As the largest recycling company in the world, the Company's operations are already closely aligned with political and social outcomes. These have been well established over many decades and while further regulation potentially could achieve higher recycling outcomes, these are already very high, with mandated recycling targets such as in the EU already above 85% and rising. Further demands on recovery are limited by technology and costs.

CC6.1e

Please explain why you do not consider your company to be exposed to opportunities driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

As a highly diversified company with more than 260 operations across major continents, the company's operations are only affected by physical climate parameters to a limited extent as demonstrated by the limited effects on operational activity from the large climate events in the US and Australia recently. Rising water levels, may potentially effect some of the company's port facilities, but these effects have been studied and have been shown to be relatively slow, easily monitored and mitigated if necessary. Interestingly, the devastation often associated with large catastrophic climate events actually tend to generate availability of scrap and secondary raw material for recycling.

CC6.1f

Please explain why you do not consider your company to be exposed to opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading

Page: CC7. Emissions Methodology

CC7.1

Please provide your base year and base year emissions (Scopes 1 and 2)

Base year

Scope 1 Base year emissions (metric tonnes

CO2e)

Scope 2 Base year emissions (metric

tonnes CO2e)

Tue 01 Jul 2008 - Tue 30 Jun 2009

122660 149636

CC7.2

Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you use

Australia - National Greenhouse and Energy Reporting Act

The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)

CC7.2a

If you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

USA EPA E Grid coefficients 2010

CC7.3

Please give the source for the global warming potentials you have used

Gas

Reference

CO2 IPCC Fourth Assessment Report (AR4 - 100 year)

CC7.4

Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page

Fuel/Material/Energy

Emission Factor

Unit

Reference

Further Information

Emission factors used for calculation of scope 1 & 2 are on the 3rd tab of the attached Excel Energy waste & water Co2 calcs V6 LFM.xls

Attachments

https://www.cdp.net/sites/2014/28/17028/Investor CDP 2014/Shared Documents/Attachments/InvestorCDP2014/CC7.EmissionsMethodology/Attached CDP Final energy waste water and Co2e calcs v 6 LFM.xlsx

Page: CC8. Emissions Data - (1 Jul 2011 - 30 Jun 2012)

CC8.1

Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Operational control

CC8.2

Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e

117886

CC8.3


138329

CC8.4

Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?

No

CC8.4a

Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure

Source

Relevance of Scope 1 emissions

from this source


excluded from this source

Explain why the source is excluded

CC8.5

Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Scope 1

emissions: Uncertainty

range

Scope 1

emissions: Main sources of uncertainty

Scope 1 emissions: Please expand on

the uncertainty in your data

Scope 2


range

Scope 2




More than 2% but less than or equal to 5%

Data Gaps Metering/ Measurement Constraints Data Management

Consumption data is collected across several regions which have multiple sites and multiple energy providers. Data is not calculated form financial invoices but from a separate data collection process in each region. Differences in process and methodology between regions exists




CC8.6

Please indicate the verification/assurance status that applies to your reported Scope 1 emissions

No third party verification or assurance

CC8.6a

Please provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements

Type of verification or assurance

Attach the statement

Page/section reference

Relevant standard

Proportion of reported Scope 1 emissions verified (%)

CC8.6b

Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emissions Monitoring Systems (CEMS)

Regulation

% of emissions covered by the system

Compliance period

Evidence of submission

CC8.7



CC8.7a





Relevant standard

Proportion of Scope 2 emissions verified (%)

CC8.8

Please identify if any data points other than emissions figures have been verified as part of the third party verification work undertaken

Additional data points verified

Comment

No additional data verified

At this stage Sims MM is not required to undertake verification for public/government reporting. SIMS MM sustainability agenda is primarily driven by introducing operational efficiency to our business and that the cost of verification is not seen as cost effective at this stage.

CC8.9

Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

No

CC8.9a

Please provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2

Further Information


Page: CC8. Emissions Data - (1 Jul 2012 - 30 Jun 2013)

CC8.1

Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Operational control

CC8.2


111133

CC8.3


142526

CC8.4

Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?

No

CC8.4a

Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure

Source


from this source


excluded from this source

Explain why the source is excluded

CC8.5

Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Scope 1


range

Scope 1




Scope 2


range

Scope 2










CC8.6



CC8.6a




Page/section reference

Relevant standard

Proportion of reported Scope 1 emissions verified (%)

CC8.6b

Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emissions Monitoring Systems (CEMS)

Regulation

% of emissions covered by the system

Compliance period

Evidence of submission

CC8.7



CC8.7a





Relevant standard


CC8.8

Please identify if any data points other than emissions figures have been verified as part of the third party verification work undertaken

Additional data points verified

Comment

No additional data verified


CC8.9

Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

No

CC8.9a

Please provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2

Further Information


Page: CC9. Scope 1 Emissions Breakdown - (1 Jul 2011 - 30 Jun 2012)

CC9.1

Do you have Scope 1 emissions sources in more than one country?

Yes

CC9.1a

Please break down your total gross global Scope 1 emissions by country/region

Country/Region

Scope 1 metric tonnes CO2e

Australia 23536

New Zealand 1078

Papua New Guinea 207

United Kingdom 15970

Sweden 247

Netherlands 805

Germany 826

Belgium 24

United States of America 74902

Canada 291

CC9.2

Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

By business division

CC9.2a

Please break down your total gross global Scope 1 emissions by business division

Business division

Scope 1 emissions (metric tonnes CO2e)

Sims Metal 109157

Sims SRS 8729

CC9.2b

Please break down your total gross global Scope 1 emissions by facility

Facility


Latitude

Longitude

CC9.2c

Please break down your total gross global Scope 1 emissions by GHG type

GHG type


CC9.2d

Please break down your total gross global Scope 1 emissions by activity

Activity


CC9.2e

Please break down your total gross global Scope 1 emissions by legal structure

Legal structure


Further Information


CC9.1


Yes

CC9.1a

Please break down your total gross global Scope 1 emissions by country/region

Country/Region


Australia 22812

New Zealand 1157

Papua New Guinea 283

United Kingdom 16240

Sweden 286

Netherlands 854

Germany 1019

Belgium 30

United States of America 67882

Canada 570

CC9.2



CC9.2a


Business division


Sims Metals 100795

Sims SRS 10338

CC9.2b


Facility


Latitude

Longitude

CC9.2c

Please break down your total gross global Scope 1 emissions by GHG type

GHG type


CC9.2d


Activity


CC9.2e


Legal structure


Further Information


CC10.1


Yes

CC10.1a

Please break down your total gross global Scope 2 emissions and energy consumption by country/region

Country/Region


Purchased and consumed electricity, heat, steam or cooling

(MWh)

Purchased and consumed low carbon electricity, heat, steam or cooling accounted for CC8.3 (MWh)

Australia 34646 33636

New Zealand 903 5421

Papua New Guinea 59 79

United Kingdom 19760 43960

Sweden 102 2356

Netherlands 1746 4662

Germany 2600 6040

Belgium 27 124

United States of America 77416 161255

Canada 1070 6401

CC10.2



CC10.2a


Business division


Sims Metals 118184

Sims SRS 20145

CC10.2b


Facility


CC10.2c


Activity


CC10.2d


Legal structure


Further Information


CC10.1


Yes

CC10.1a

Please break down your total gross global Scope 2 emissions and energy consumption by country/region

Country/Region


Purchased and consumed electricity, heat, steam or cooling

(MWh)

Purchased and consumed low carbon electricity, heat, steam or cooling accounted for CC8.3 (MWh)

Australia 37836 36734

New Zealand 997 5969

Papua New Guinea 103 139

United Kingdom 25048 55662

Sweden 128 2970

Netherlands 1769 4731

Germany 2908 6762

Belgium 27 122

United States of America 72734 151529

Canada 976 5844

CC10.2



CC10.2a


Business division


Sims Metals 114311

Sims SRS 28215

CC10.2b


Facility


CC10.2c


Activity


CC10.2d


Legal structure


Further Information

Page: CC11. Energy

CC11.1

What percentage of your total operational spend in the reporting year was on energy?


CC11.2

Please state how much fuel, electricity, heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type

MWh

Fuel 462724

Electricity 270462

Heat

Energy type

MWh

Steam

Cooling

CC11.3

Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels

MWh

Motor gasoline 4931

Diesel/Gas oil 368028

Liquefied petroleum gas (LPG) 10307

Natural gas 79458

CC11.4

Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the Scope 2 figure reported in CC8.3

Basis for applying a low carbon emission factor

MWh associated with low carbon electricity, heat, steam or cooling

Comment

No purchases or generation of low carbon electricity, heat, steam or cooling accounted with a low carbon emissions factor

Further Information

Page: CC12. Emissions Performance

CC12.1

How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

Decreased

CC12.1a

Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year

Reason

Emissions value

(percentage)

Direction of change

Comment

Emissions reduction activities

3.4 Decrease Emissions directly reduced as a function of targeted activities as outlined in section cc3.3a. specifically, new solar arrays in the USA, and more fuel efficient equipment employed in the USA and the UK. These activities resulted in a direct reduction of CO2 emissions of 8,613 tonnes in F13

Divestment

Acquisitions

Mergers

Change in output

Change in methodology

Change in boundary

Change in physical operating conditions

2.4 Increase

Due to a decrease in intake volumes and hence less efficient production ratio's, CO2 emissions increased by 6,055 tonnes across all operations. The net outcome being an overall reduction of only 2,558 tonnes across the Group as reflected in the total difference between F12 and F13 emissions of 256,215 tonnes and 253,657 tonnes respectively.

Unidentified

Other

CC12.2

Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Intensity figure

Metric numerator

Metric denominator

% change from

previous year

Direction of change

from previous

year

Reason for change

0.0000353 metric tonnes CO2e

unit total revenue

23.9 Increase

As explained in earlier sections, SimsMM operates in a highly volatile commodities industry where revenue is more a function of commodity price movements than operational activity. Accordingly SimsMM is not in favour of this as an intensity indicator and prefer other, more operationally relevant markers. However, for the purpose of this question, total revenue for F13 was $7.193 billion with a corresponding Scope 1+2 emissions of 253,657 tonnes. In F12 the revenue was $9.0 billion, with Scope 1+2 emissions at 256,215 tonnes, which provides for 0.0000353t/$ versus 0.0000285t/$ - an increase of 23.9% over F12

CC12.3

Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per full time equivalent (FTE) employee

Intensity figure

Metric numerator

Metric denominator

% change from

previous year

Direction of change from

previous year

Reason for change


FTE employee

4.9 Increase Operational activity is dominated by intake tonnes. One cannot run "half a truck" when intake tonnes are down by 50% and with a large and diversified employment structure, this is not a linear equation. While there were significant reductions in staff

Intensity figure

Metric numerator

Metric denominator

% change from

previous year

Direction of change from

previous year

Reason for change

during F13, many of these were not related to production and hence this metric is again not a good indicator of energy efficiency.

CC12.4

Please provide an additional intensity (normalized) metric that is appropriate to your business operations

Intensity figure

Metric numerator

Metric denominator

% change from

previous year

Direction of change

from previous

year

Reason for change


metric tonne of product

11.9 Increase

The secondary raw material that SimsMM produces save huge amounts of energy and hence CO2 emissions, but these are only realised when consumers choose our secondary raw materials in preference to virgin materials. As per previous entries, Sims has been impacted by lower intake and sales volumes as a result of the GFC and as a consequence, operational efficiency has been impacted. That should not detract from the company's ongoing commitment to reduce its operational CO2 footprint, which remains small at 19.8kg/sales tonne (F13) and 17.7kg/sales tonne in F12. It should be remembered that while the total operational activities of SimsMM in F13 gave rise to 253,657 tonnes of CO2 emissions, the materials produced saved more than 13.4 tonnes of CO2 being emitted to the atmosphere.

Further Information

Page: CC13. Emissions Trading

CC13.1

Do you participate in any emissions trading schemes?

No, and we do not currently anticipate doing so in the next 2 years

CC13.1a

Please complete the following table for each of the emission trading schemes in which you participate

Scheme name

Period for which data is supplied

Allowances allocated

Allowances purchased

Verified emissions in metric tonnes CO2e

Details of ownership

CC13.1b

What is your strategy for complying with the schemes in which you participate or anticipate participating?

CC13.2

Has your organization originated any project-based carbon credits or purchased any within the reporting period?

No

CC13.2a

Please provide details on the project-based carbon credits originated or purchased by your organization in the reporting period

Credit origination

or credit purchase

Project type

Project identification

Verified to which standard

Number of credits (metric

tonnes of CO2e)

Number of credits (metric tonnes

CO2e): Risk adjusted volume

Credits cancelled

Purpose, e.g. compliance

Further Information

Page: CC14. Scope 3 Emissions

CC14.1

Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources of Scope 3 emissions

Evaluation status

metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated

using primary data

Explanation

Purchased goods and services

Not relevant, explanation provided

All crucial business functions are provided in house, including services and purchased goods, which is accordingly accounted for as a matter of course within our Scope 1 and 2 reporting. Where such goods and services fall distinctly outside our footprint, we consider that as a matter for the entity to report as part of their operational activities.

Capital goods Not relevant, explanation provided


Fuel-and-energy-related activities (not included in Scope 1 or 2)




Evaluation status

metric tonnes CO2e



using primary data

Explanation

Upstream transportation and distribution



Waste generated in operations



Business travel Not evaluated

Until boundary conditions are suitably clarified, we consider that the matter of CO2 emissions in the course of business travel is a matter for the provider to report, when SimsMM purchase such travel under normal commercial arrangements.

Employee commuting Not evaluated SimsMM does not provide or reimburse employee commuting and hence this does not come within our sphere of reporting

Upstream leased assets


SimsMM owns and operates all its assets, which all report under our footprint.

Downstream transportation and distribution


All crucial business functions are provided in house, including services, transportation and distribution, which is accordingly accounted for as a matter of course within our Scope 1 and 2 reporting. Where such goods and services fall distinctly outside our footprint, we consider that as a matter for the entity to report as part of their operational activities.

Processing of sold products

Relevant, calculated

The services and products provided by SimsMM during F13 saved in excess of 13.4 million tonnes of CO2. See Annual Sustainability Report F13 (www.simsmm.com)

Use of sold products Relevant, calculated


End of life treatment of sold products

Relevant, calculated



Evaluation status

metric tonnes CO2e



using primary data

Explanation

Downstream leased assets


SimsMM owns and operates all its assets, which report under our footprint.

Franchises Not relevant, explanation provided

SimsMM does not have any franchises

Investments Not relevant, explanation provided

SimsMM is the world's largest recycler deriving income from operational activities, not investments.

Other (upstream) Not evaluated

Other (downstream) Not evaluated

CC14.2


No emissions data provided

CC14.2a

Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Type of verification

or assurance



Relevant standard


CC14.3

Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?

No, we don’t have any emissions data

CC14.3a

Please identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Sources of Scope 3

emissions

Reason for change

Emissions value

(percentage)

Direction of change

Comment

CC14.4

Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)

Yes, our suppliers Yes, our customers Yes, other partners in the value chain

CC14.4a

Please give details of methods of engagement, your strategy for prioritizing engagements and measures of success

As the worlds' largest recycler, SimsMM provides crucial secondary raw materials and services to a large number of global customers. Most of these are crucially interested in their supply chain and its associated CO2 footprint. SimsMM works with all these customers as well as with the International Recycling Association (BIR), ISRI (USA) sponsoring detailed lifecycle analysis, to substantiate to customers and Government's the huge energy and CO2 savings that the use of recycled materials represent. This also includes the company's electronics recycling and re-use division, again the largest in the world.

CC14.4b

To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent

Number of suppliers

% of total spend

Comment

100000 Information is provided free of charge as part of our ongoing commitment to recycling. The company has 10's of thousands direct customers worldwide and in turn, many sub- customers

CC14.4c

If you have data on your suppliers’ GHG emissions and climate change strategies, please explain how you make use of that data

How you make use of

the data

Please give details

We do not have any data

As explained earlier, all crucial business activities are controlled in house and thus accounted for as part of our Scope1 and 2 footprint. Where such services are provided to us on a normal commercial basis, we expect such suppliers to provide their energy and CO2 footprint as part of the services provided as part of those commercial arrangements.

CC14.4d

Please explain why you do not engage with any elements of your value chain on GHG emissions and climate change strategies, and any plans you have to develop an engagement strategy in the future

Further Information

Module: Sign Off

Page: CC15. Sign Off

CC15.1

Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name

Job title

Corresponding job category

Peter Netchaef Acting Global Director, Sustainability Environment/Sustainability manager

Further Information

CDP 2014 Investor CDP 2014 Information Request