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SIMS LIMITED | 2 About Us The Sims Purpose Managing Sustainability Our Performance About This Report ABOUT US THE SIMS PURPOSE MANAGING OUR PERFORMANCE ABOUT THIS REPORT SUSTAINABILITY 2020 Sustainability From Linear to Circular: Environmental.........................37 Scope and Boundary.............72 Highlights...................................4 We Need to Solve a Governance.............................25 People........................................47 GRI Table...................................73 Waste Mindset Problem....... 14 About Sims Limited.................5 Materiality............................... 29 Responsible Business.......... 68 The Sims Limited 103 Years of Global Task Force on Climate- Sustainability Strategy......... 16 Economic Performance....... 70 Recycling Experience..............6 Related Financial How Sims Limited Creates Disclosures.............................. 32 At a Glance – Our Business Value........................................... 21 Divisions...................................... 7 Sims Limited’s Integrated Growth Strategy.......................8 Chairman’s Message...............9 CEO’s Message......................... 11 TABLE OF CONTENTS
About Us The Sims Purpose Managing Sustainability Our Performance About This Report ABOUT US Key Enabler of the Circular Economy
SIMS LIMITED | 4 About Us The Sims Purpose Managing Sustainability Our Performance About This Report ABOUT US 2020 Sustainability Highlights The Sims Purpose Managing Sustainability Our Performance 24.6k $135m 1 Sustainability strategy Board of tonnes of cloud and goals developed invested to close the loop on our metal recycling process 37 % Directors are women material recovered over the past three years >600k 3 LMS Energy added a tonnes of municipal curbside recycling Member of DJSI Australia Index since 2009 350kW rooftop solar system at our out of 12 ELT2 processed members are Gillman site, which meets ~15% female of its electricity needs 8.2m tonnes of secondary Member 14% metals recycled of the World Business Council for Sustainable Development and Won additional municipal active contributor of the circular recycling contract in 450k economy program Florida with contract terms increase in reuse and mitigating commodity risk recycling of cloud material MWh of base-load renewable energy generated via LMS China announced new Energy (powers 80,000 regulations classifying high- Commenced community consultation for the homes per annum) quality non-ferrous scrap as first resource renewal facility planned in a “renewable metal” Campbellfield, Victoria 1 All currency figures referred to in this report are in Australian dollars unless otherwise stated. 2 Executive Leadership Team
SIMS LIMITED | 5 About Us The Sims Purpose Managing Sustainability Our Performance About This Report ABOUT US About Sims Limited Sims Limited is a global leader in metal and electronics recycling, and an emerging leader in the municipal recycling and renewable energy industries. With more than 200 facilities and operations in 15 countries, Sims Limited plays an integral role in the circular economy by making resources available for future use. Our purpose, create a world without waste to preserve our planet, is what drives us to constantly innovate and offer new solutions in the circular economy for consumers, businesses, governments and communities around the world.
SIMS LIMITED | 6 About Us The Sims Purpose Managing Sustainability Our Performance About This Report ABOUT US 103 Years of Global Recycling Experience 200+ FACILITIES OPERATING IN Our Locations Sales to Customers 15 COUNTRIES HQ Per Region 4,000 % Other 41.7 Turkey 17.1 EMPLOYEES United States 19.5 China 9.8 Australia 8.7 South Korea 3.2 103 YEARS OF RECYCLING EXPERIENCE 50 METAL RECYCLING 29 METAL RECYCLING 18 ELECTRONIC 50 METAL RECYCLING FACILITIES ACROSS FACILITIES LIFECYCLE FACILITIES ACROSS $4.9bn No single customer contributed 10 percent ACROSS THE UK SERVICES AUSTRALIA, NEW or more to the Group revenue for all the NORTH AMERICA periods presented. FACILITIES ACROSS ZEALAND & PAPUA SALES REVENUE IN 2020 15 COUNTRIES NEW GUINEA
SIMS LIMITED | 7 About Us The Sims Purpose Managing Sustainability Our Performance About This Report ABOUT US At a Glance Our Business Divisions METAL RECYCLING ELECTRONIC MUNICIPAL RECYCLING RESOURCE RENEWAL RENEWABLE ENERGY LIFECYCLE SERVICES We buy, process and sell We lead urban recycling in As part of our long-term growth Our joint venture, LMS Energy, ferrous and non-ferrous We’re a market leader in New York City and manage strategy, we will expand our is a leader in landfill gas-to- recycled metals through e-recycling, and we enable a a portion of the curbside business offering to transform renewable energy and an our locations, primarily in range of industries to securely recycling programme for the material leftover following innovator in solar-on-landfill Australia, the United Kingdom and responsibly reuse, recycle Chicago – two of the largest metals recycling – auto technology. LMS has a total of shredder residue (ASR), which 27 landfill biogas-to-energy and the United States. We and manage the disposal of urban areas in the U.S. We projects and 18 flaring projects recover, process and sell steel, IT equipment and electronic process and market more than currently is landfilled – into in operation across Australia iron, copper and aluminium to products in a legally compliant, 600,000 tonnes of municipal useful products for society. and New Zealand. These manufacturers in 30 countries. data secure, fully traceable and curbside material annually We will use proven, advanced projects generate in excess of Globally, we recover and environmentally sustainable for New York City, Palm plasma gasification technology, 450,000 megawatt hours of recycle more than 8 million way. Data centre volumes Beach County, and portions which will continually improve baseload renewable electricity tonnes of scrap metal each increased 14 percent in FY20 of New Jersey, Long Island through our research and annually, which powers 80,000 year, and we continue to to 24,600 tonnes compared to and Chicago. We’re evolving development. Our designs homes per annum. Additionally, fortify and grow this area of 21,600 tonnes in FY19. We’re our municipal recycling follow European emissions LMS has five solar projects our business through market constantly exploring new capabilities to meet the needs standards, which are the across Australia. optionality and operational innovative solutions to serve of an ever-changing recycling current global emissions With 44 carbon abatement excellence. this vast emerging market by landscape. Our mission is to benchmark. This line of projects accredited under the develop transformative waste business will allow us to close Emission Reduction Fund, growing product stewardship the loop on our own waste, LMS has also been issued with and services for recycling the management solutions for the reduce our local environmental more than 50 percent of all cloud, and closing resource megacities of the future. footprint, save on landfill and Australian Carbon Credit Units loops for our customers. (ACCUs) under the landfill gas energy costs, and develop a new revenue stream. methodologies. 8.2m 24.6k 600k AN ESTIMATED 40m CONVERT TONNES OF SCRAP METAL TONNES OF CLOUD TONNES OF MUNICIPAL 1m TONNES OF ASR INTO QUALITY TONNES OF CARBON RECYCLED IN FY20 MATERIAL RECOVERED MATERIAL RECYCLED PRODUCTS EACH YEAR BY EMISSION REDUCTIONS IN BY SIMS MUNICIPAL IN FY20 2030 THE LAST 24 YEARS RECYCLING IN FY20
SIMS LIMITED | 8 About Us The Sims Purpose Managing Sustainability Our Performance About This Report ABOUT US Sims Limited’s Integrated Growth Strategy Aligned with our purpose, we will grow current businesses (metals, electronics and municipal recycling) and expand into new environmental adjacencies. Strategic Growth: Targeting both a minimum 15% return on growth projects requiring capital and material Considering the major changes COVID-19 has had on the way we work, we reassessed our strategy Environmental, Social and Governance (ESG) benefits and the global megatrends used to develop it. Both our strategy and global megatrends remain valid. FY20 FY25 FY25 Megatrends Growth Strategy Ferrous Volumes (‘000 tonnes) Key ESG Measure Global push for high- Expand metal volumes quality metals in favourable geographies 1.8 million tonnes1 6,301 9,600 of additional metals recycled Non-Ferrous Retail Volumes (‘000 tonnes) Growing demand for Grow U.S. 145k tonnes1 copper and aluminum scrap non-ferrous business 141 300 of additional metals recycled Resource Renewal Status Increased environmental Enter resource renewal Converts 95% concerns Pre-feasibility Capacity 120k ASR of ASR into useful products completed tonne/year Tonnes of cloud material An increasingly Recycle cloud 3.9 million2 connected world infrastructure 24,600 200,000 units reused or redeployed Renewable energy (Megawatts) Increasing concerns Expand proven landfill ~450k MWh 3 of renewable energy around global warming energy business overseas 67 3 Under review generated 1 Based on an FY18 base year to FY25 2 Estimated based on outcomes from 2019 3 Represents renewable energy generated by LMS Energy
SIMS LIMITED | 9 About Us The Sims Purpose Managing Sustainability Our Performance About This Report ABOUT US Chairman’s Message THE SIMS PURPOSE in its core metal and e-recycling businesses, and to reduce waste and produce clean energy to THE SIMS PURPOSE: In April 2019, we introduced the Sims purpose; further long-term profitability and the reach of its CREATE A WORLD create a world without waste to preserve our planet. This purpose demonstrates that sustainability efforts. sustainability is at the core of our business and is key to creating long-term shareholder value. During FY20, Sims began executing this strategy. As part of Sims’s five-year strategic plan, we WITHOUT WASTE TO PRESERVE OUR PLANET The world has changed significantly since we announced our goal to reuse, redeploy, and announced our purpose 18 months ago, with recycle 200,000 tonnes of cloud material by the health, economic and societal challenges not end of FY25. The “recycling the cloud” initiative faced for many years. The pandemic shows how demonstrates Sims’ ability to play a critical role in deeply connected we are to one another, and the helping businesses manage end-of-life technology importance of working together to protect our and keep resources in use at their highest value health, way of life and planet. I am proud that Sims for as long as possible. Despite the impact of the Limited is working with its employees, customers, COVID-19 pandemic, Sims Lifecycle Services was partners, governments and communities to find able to grow its customer base during FY20 and ways to innovate and protect our environment. remains on track to achieve its FY25 goal. Sims plays an integral role in the circular economy Our resource renewal programme is another by making resources available for future use. Each component of our strategic plan, and an excellent year, Sims recycles millions of tonnes of secondary example of our strategy to create a closed loop materials, diverting the material from landfills business model while generating attractive and reducing the need to extract new material. financial returns. In August, Sims announced With 103 years of recycling experience, Sims will its programme to transform the material left continue to innovate to find the safest and most over following metal recycling into new, quality effective technologies to recover and recycle products, such as construction materials, materials, enabling Sims to achieve its purpose. electricity and feedstock for recycled plastics. The company aims to design and build 11 resource EXECUTING OUR STRATEGIC PLAN renewal facilities globally by 2030. The first facility is proposed for Campbellfield in Victoria Guided by the Sims purpose and our integral role and a research and development-focused pilot in the circular economy, in FY19 we announced an facility is proposed for Rocklea, Queensland. ambitious five-year strategic plan. This plan set Sims on a path to pursue opportunities for growth Geoff Brunsdon – Chairman
SIMS LIMITED | 10 About Us The Sims Purpose Managing Sustainability Our Performance About This Report ABOUT US CHAIRMAN’S MESSAGE CONTINUED Key to Sims’ strategic plan is its ability to innovate, Last year, we began reporting the Group’s sustainability GROWING OUR DIVERSE TEAM whether it is installing new technology to increase metal record using the Global Reporting Initiative as a The Board recognises the value of diversity – both in yields or developing recycling solutions to meet the guideline, which we continue in this year’s report. We terms of background and experience – for achieving need in evolving industries, such as recycling the cloud. will also continue to adopt the Task Force on Climate- Sims’ purpose. A diverse workforce is essential for Our strategy provides the opportunity to further both related Financial Disclosures (TCFD) recommendations developing the innovative and creative solutions long-term sustainability and profitability, to the benefit to more closely track and disclose our climate-related necessary to drive a profitable and sustainable future. of our shareholders, employees, the communities in risks and opportunities. which we operate, our suppliers and our customers. Sims’ workforce is geographically diverse with SAFETY operations in 15 countries. We still need to improve SETTING OUR SUSTAINABILITY STRATEGY The COVID-19 crisis has presented health and safety our gender balance, and the Board and management During FY20, Sims took another important step toward challenges not previously faced during the working remain focused on achieving this objective across achieving its purpose. After a rigorous materiality lives of our leaders. Sims’ first priority has been and will the entire workforce while creating a workplace that assessment, we developed Sims’ sustainability strategy continue to be the safety of our employees, customers, fosters diversity in the broadest sense. The company with three pillars, Operate Responsibly, Close the suppliers and those in the communities where we continued to make strides to improve gender diversity Loop and Partner for Change, and ambitions to operate. We will continue to maintain safe social in its workforce during FY20. This year, the company support the pillars. Our sustainability strategy is an distancing at our facilities and offices, execute enhanced improved the diversity of its applicant pool, with women integral part of our five-year strategic plan and will cleaning protocols, and enable our employees to work comprising 25 percent of all job applicants, and the guide us in the execution of the plan. from home where possible. Moreover, we will remain company’s overall female new hires well outpaced the diligent in improving our protocols as risks are identified current female population. These actions resulted in Each of the three pillars is aligned to one of the United in the communities in which we operate around the world. the company’s female representation increasing to 21 Nations Sustainable Development Goals (UN SDGs). percent at the end of FY20 from 19.5 percent in the We selected the three UN SDGs we can most impact, In addition to the measures we have taken in response prior year. Decent Work and Economic Growth, Climate Action, and to the pandemic, we have remained laser-focused Responsible Consumption and Production. We strongly on safety. During the 2020 fiscal year, the company Our purpose clearly articulates our identity and will support the UN SDGs and will work to advance them. prioritised improvements to its safety management enable us to attract the best and brightest talent system. We standardised operation practices and with the skills necessary to develop and implement performance measures, and streamlined and simplified sustainable solutions. Together with our employees, Sims Limited Sustainability Strategy Pillars safety programs, standards and training. I am pleased to customers, partners, government and communities, we report a significant decline in both the total recordable will collaborate to solve shared global challenges and injury frequency rate (TRIFR) and the lost time injury achieve the future vision we seek. frequency rate (LTIFR) as compared to the prior year. Safety is paramount in all that we do, and it is key to On behalf of my fellow directors, I thank all of our operating responsibly. We will continue to use this employees for their dedication and efforts in creating a OPERATE CLOSE PARTNER safer and more sustainable future over the past year. RESPONSIBLY THE LOOP FOR CHANGE systematic approach to driving improvement in safety until we reach our goal of zero harm. Geoff Brunsdon – Chairman’s Message
SIMS LIMITED | 11 About Us The Sims Purpose Managing Sustainability Our Performance About This Report ABOUT US CEO’s Message The recycling and sustainability business is not for business, enter resource renewal, enhance data centre PEOPLE the faint of heart, and while we have had a number of decommissioning infrastructure, and expand a proven It is our corporate responsibility to speak out and act pleasant and profitable years, fiscal year 2020 was not landfill energy business overseas – in the near term. against anything that infringes on the human and civil one of them. FY20 was challenging and was extremely rights of another – least of which are racism, modern impactful to our global business. We started FY20 with The Sims Limited sustainability strategy is built on three pillars: slavery, human trafficking and wage theft – within declining scrap prices and intense volatility, and we our company and throughout our value chains. In my ended the year in the midst of a global pandemic. This view, silence is complicity, and I believe that everyone OPERATE RESPONSIBLY pandemic not only affected our business, but it also deserves respect. affected the communities where we operate and do We commit to operating as a best-in-class business that business. continuously improves its safety, business performance The Board of Directors, the executive leadership team and employee engagement, and upholds ethical and I understand and appreciate how essential a diverse COMMUNITY business practices. workforce – in background, thought and experience – Community and sustainability are extremely important is to our business and achieving our purpose. We are CLOSE THE LOOP to our business. While sustainability is the path for us to achieve our purpose, create a world without waste Rethink the concept of waste, close our own material to preserve our planet, community is the way in which loop, and support others in doing the same. we ensure that we live our purpose daily. When we developed and introduced our purpose in FY19, we also PARTNER FOR CHANGE established a strategic, multi-year plan that would allow Create shared value while developing new business us to drive scalable, sustainable growth throughout models that support safe, healthy and productive value all of our business divisions, and also deliver on our chains. environmental objective: reduce our waste and keep resources in use for as long as possible. For this reason, These three pillars correlate to, and are in support of, our sustainability and our corporate growth strategies three of the 17 United Nations Sustainable Development are fully integrated. Goals (Decent Work and Economic Growth, Climate Action, and Responsible Consumption Our purpose is the underlying and unifying thread for and Production), because we understand that our each of our initiatives, projects and programmes. We’ve business divisions do not operate in a vacuum. Each established business relationships and partnerships of our employees is keenly aware of the role we play with like-minded organisations to ensure that we are in in the global circular economy, and how our work and the best position to achieve our purpose in the long- operations impact the communities where we operate term, as well as our strategic targets – expand metal and do business. volumes in favourable geographies, grow non-ferrous Alistair Field – CEO & Managing Director
SIMS LIMITED | 12 About Us The Sims Purpose Managing Sustainability Our Performance About This Report ABOUT US CEO’S MESSAGE CONTINUED also committed to having a workforce who supports infrastructure – all with varying lifespans. Generally racism and social justice protest in virtually every corner our shared purpose and respects human rights. Sims speaking: of the world, and the financial implications that resulted Limited employees and I recognise the responsibility we • A yogurt cup from purchase to use has a lifespan of a – our team remains strong and resolute. have to protect and uphold the human and civil rights few days. of our colleagues, our suppliers and our customers. We SAFETY know this responsibility extends to the communities • A cellphone before upgrading is used for two to three We drove continuous improvement in a number of where we operate, as well as the communities where years. areas in FY20, including safety. One of those areas of we provide our products and services. This has been an • A laptop’s lifespan is approximately three to five years. improvement included our new critical risk management unwavering point throughout my life and career, and it • A refrigerator is used for five to 10 years. programme. This programme allowed us to shift our is a sentiment that I bring to work and echo each and focus so that we could identify and address the risks • A car will last the average person from 10 to 15 years. every day. within our business that could lead to a serious injury. • A bridge or a building can have a lifespan of 30 to 100 Although all Sims Limited employees are aware of PLANET years. this new safety focus, our leaders have an added With each passing day, we are reminded that the world responsibility to conduct frequent safety audits – we PROSPERITY faces a growing, global challenge of waste management refer to them as critical control verifications internally and resource scarcity. Ultimately, we hope society’s Each of these items can be recovered as valuable raw – to challenge the effectiveness of our current safety perception of how materials are used shifts. Instead of materials for future products instead of being sent to measures and controls. a “take-make-waste” mindset, the concept of a circular landfill as waste. Our business divisions receive these economy needs to be common knowledge and practice, products, sort them, refurbish them (when possible), These audits have been highly successful and have so that society can start to think of “waste” as a valuable harvest their parts, and then the recycled materials resulted in hundreds of improvement opportunities resource. We know that this mindset shift will not are sold to become new items. While the end of life for that drive efficiency from a safety standpoint. We’ve happen overnight. It will take a great deal of education, these products may not always be top of mind for an highlighted these efficiencies in regular messages, industry collaboration and political willingness for individual, it is always top of mind for us. We know the in meetings and on our company intranet, so that individuals and organisations to actively work to ensure circular economy goes beyond recycling; it is focused employees are consistently aware of and engaged in the that these materials end up in the right places for their on rescuing the past to ensure a more sustainable measures we are taking to keep us all safe while we do value to be kept in the loop for as long as possible, future. That’s why we have expanded into higher value this important work. thereby closing our collective resource loop. sustainability services, and we continue to invest in innovative technologies that allow us to extract more As we build upon our legacy of offering innovative Consider this: everything we use has a lifespan, and value from inputs and enter new business adjacencies solutions in the circular economy, we will continue to if we use resources in the right way, we can definitely that will allow us to redefine waste. promote and increase diversity, embrace differences, close the resource loop in our lifetime. Through our and foster an inclusive work environment where business divisions and their respective service offerings, We have made a great deal of progress on the road to employees feel respected and valued. The future of Sims Sims Limited touches a number of products that are achieving our purpose and accomplishing our strategic Limited is bright, and with the best team in the business, part of an individual’s daily life – from food containers targets in FY20. Despite a number of challenges this I know that there is no limit to what we can achieve and electronics to appliances and major pieces of past fiscal year – the global coronavirus pandemic, together. Alistair Field – CEO’s Message
About Us The Sims Purpose Managing Sustainability Our Performance About This Report THE SIMS PURPOSE Create a world without waste to preserve our planet
SIMS LIMITED | 14 About Us The Sims Purpose Managing Sustainability Our Performance About This Report THE SIMS PURPOSE From Linear to Circular: We Need to Solve a Waste Mindset Problem One of the world’s most daunting issues is the mounting in value every year due to clothing that’s barely worn otherwise lost, which can contribute directly to climate waste problem. and rarely recycled. change. • Each year, the world’s cities generate approximately • It harms our environment. Approximately 100 billion As a society, we need to shift our way of thinking and 2.01 billion tonnes of trash, far more than can be tonnes of resources flow into the economy each year, build a circular economy. Much more than managing recycled or properly processed.1 of which 32 billion tonnes of materials are collected as waste, a circular economy actively aims to keep waste. Of this, only 8.65 billion tonnes, or 8.6 percent resources in use for as long as possible, then recover • Approximately 5.2 million tonnes of major of total material use of society, is cycled, according to and regenerate products and materials at the end of applicances, including refrigerators, washing the Platform for Accelerating the Circular Economy.4 each service life. In other words, the goal is to reduce, machines and water heaters, were landfilled in the The majority of waste is landfilled, incinerated or reuse, repair, repurpose and recycle. United States in 2017, according to the EPA.2 • One year of electronic and electrical waste weighs as much as 50 million tonnes.3 This is not just a trash problem. The world has a consumption problem. Our global economy is designed for linearity – take, make, waste. We’re of the mindset that when we buy something new, we get rid of what is old. As the Earth’s population continues to grow and we consume more products, this traditional linear materials economy is unsustainable. • It strains our resources. The UN International Resources Panel projects the use of natural resources to double by 2050. • It overburdens our infrastructure. In developing parts of the world, rapid industrialisation is happening in countries that have not yet developed the appropriate systems to deal with waste. Without the infrastructure to collect garbage, it is dumped in rivers, canals and streets, and it creates environmental and health hazards. • It results in lost opportunity. According to the Ellen MacArthur Foundation, every second, the equivalent of one garbage truck of textiles is landfilled or burned globally. This leads to an estimated $500 billion loss
SIMS LIMITED | 15 About Us The Sims Purpose Managing Sustainability Our Performance About This Report THE SIMS PURPOSE FROM LINEAR TO CIRCULAR: WE NEED TO SOLVE A WASTE MINDSET PROBLEM CONTINUED Creating Value for Sims, investing to increase automation and procurement for the materials needed gas by LMS reduces carbon emissions improve the operations of each of its for production of gadgets. Second, – 40 million tonnes to date – and Our Customers and the business divisions to deliver higher discarded devices produce large provides enough local renewable Environment quality materials for customers. quantities of electronic waste, which includes hazardous waste. And third, energy to power approximately 80,000 homes annually. In addition, At Sims Limited, we’re seeking ways • Minimising residual waste and extracting maximum value from the large amount of data consumption to close our own loop, Sims Limited to help the industries in which we’re requires significant amounts of established a new business division, involved to capture more value in their waste. Sims Municipal Recycling is developing waste management electricity to power the data centres, Sims Resource Renewal. This activity by using circular principles and which contributes to climate change. division will take the material leftover business models. We’re doing this solutions for mega cities, helping cities move to combine recycling Electronic waste could be reduced from recycling old goods such through: through reuse, repair or resale, and as cars, washing machines and material and increase recycling rates from waste. High recycling rates are Sims Lifecycle Services is working with home appliances, and via plasma • The creation of closed loops: As the essential for cities to minimise waste information technology companies to gasification, create new useful largest listed metals recycling company disposal costs, environmental and drive new approaches to regenerate products. in the world, Sims Metals takes climate impacts, and to work toward technologies and increase recycled Changing behaviour so people and common metal waste, such as cars zero waste. At our material recovery content. For example, Sims Lifecycle businesses are encouraged to rethink and kitchen appliances, and efficiently facility in Brooklyn, New York, autosort Services recently collaborated with waste and reduce, reuse, repurpose process them into fist-size chunks, technology uses high-resolution, an information technology company and recycle is also crucial. As a leading which are then sorted into various near-infrared sensors to identify up to to economically recover and recycle innovator in the global circular economy, types of metals and sold. It may be 10,000 plastic objects per minute with rHIPS and ABS plastics, which are we continuously are seeking new ways to a surprise that the most recycled more than 95 percent accuracy. then being used to manufacture new effectively collaborate with stakeholders consumer product in the world isn’t products. These products will have a to shift mindsets and work toward a safe a plastic bottle or soup can. It’s the • Second-life opportunities: As one Green Label to identify them as being and sustainable future, where waste is automobile.5 Approximately 80 percent of the largest electronics recyclers, manufactured with post-consumer, seen as a resource. Through educational of a vehicle can be recycled, and Sims Lifecycle Services is seeking to closed-loop recycled content. activities with municipal residents that those recycled materials go into new become the leading global provider vehicles or other products. Recycling of “cloud recycling” solutions and the • Innovating new, regenerative encourage rethinking consumption metals saves significant resources: supply chain partner of choice to meet business models: Our joint venture and recycling resources to looking for steel made with scrap metals uses 90 OEM recycled plastic needs. The partner LMS Energy is the owner practical levers for business to partner, percent less virgin material, 74 percent increase in consumption of electronics of the largest landfill-to-renewable innovate and join policy action, Sims is less energy and 40 percent less water has three major ecological challenges. energy operation in Australia, providing seeking to unlock value at every stage of than steel made from mining iron ore First, it increases mining and a blueprint for landfill management the circular economy. and coal.6 Sims Limited is continually optimisation. The recovery of landfill 1 What a Waste 2.0: A Global Snapshot of Solid Waste Management to 2050, World Bank 4 The Circularity Gap Report 2020, Platform for Accelerating the Circular Economy 2 Facts and Figures about Materials, Waste and Recycling, U.S. EPA 5 World Auto Steel 3 New Circular Vision for Electronics, World Economic Forum 6 BIR
SIMS LIMITED | 16 About Us The Sims Purpose Managing Sustainability Our Performance About This Report THE SIMS PURPOSE The Sims Limited Sustainability Strategy A Circular Economy Just Makes Good Sense For 103 years, Sims Limited has enabled the circular economy. What has been Sims Limited Enables the Circular Economy a business rooted in making the most of the ecosphere’s resources is now a formalised concept and practice at the forefront of the world’s agenda. RESOURCES That is why we can confidently circular economy and in a great relevant to the company, as well say sustainability has been at position to continue to drive this as creating a higher level of the core of what we do; it is the opportunity. accountability that clearly aligns right thing to do, and it makes sustainability with our long-term good business sense. As we In 2020, COVID-19 created success. FY20 was a crucial help divert millions of tonnes disruption and uncertainty, but year for designing and building PARTS MANUFACTURING of secondary materials from it also made it abundantly clear our sustainability strategy and RECYCLE landfill each year, we are directly that everything in the world is governance. To reaffirm our reducing the need for extracting truly interconnected and more leadership commitments, we virgin raw materials – and that than ever businesses need to be established baselines and adaptable, relevant and resilient ASSEMBLY/PRODUCT means that we are effectively targets, and actively engaged MANUFACTURING fighting climate change. to thrive. For a business to be our stakeholders to identify gaps successful in the long-term, its and opportunities. PARTS LANDFILL GAS TO Knowing that only 9 percent of purpose needs to go beyond ENERGY/RESOURCE HARVESTING the world economy is circular short-term stakeholder profit. ? RENEWAL DISTRIBUTION means circular business models Our purpose is to create a world need to thrive in order to deliver without waste to preserve our on climate change goals. planet. D I D YO U K N O W ? Climate change and the circular 9% economy are inextricably linked, Our purpose is the basis we REFURBISH as most secondary materials used to develop our strategic require significantly less energy growth and sustainability ONLY USER to transform into products than strategies. Every single target primary ones.1 Not to mention, of our growth strategy is the circular economy avoids embedded in our sustainability OF OUR WORLD RECOVER AND the use of natural resources. framework. This makes our MANAGE ECONOMY IS CIRCULAR? Sims is at the centre of the sustainability framework 1 Source: The Circularity Gap Report
SIMS LIMITED | 17 About Us The Sims Purpose Managing Sustainability Our Performance About This Report THE SIMS PURPOSE THE SIMS LIMITED SUSTAINABILITY STRATEGY CONTINUED After the rigorous materiality assessment carried out in FY19 and external validation with investors, academic and industry experts, we developed our sustainability ambitions and goals aligned to each pillar and to a United Nations Sustainable Development Goal (UN SDG). The Sims Sustainability Sims Limited Strategy Sustainability Strategy PARTNER FOR CHANGE CLOSE THE LOOP Build trusted relationships with our communities OPERATE Become carbon neutral by 2042 and achieve Create new RESPONSIBLY net zero by 2050 business models that further the Achieve no waste circular economy to landﬁll Foster a no-harm work environment Close materials loops Close gender gap further by expanding Develop a skilled and engaged workforce capacity and services Ensure transparency on how our business is conducted in an ethical manner CREATE A WORLD WITHOUT WASTE TO PRESERVE OUR PLANET
SIMS LIMITED | 18 About Us The Sims Purpose Managing Sustainability Our Performance About This Report THE SIMS PURPOSE THE SIMS LIMITED SUSTAINABILITY STRATEGY CONTINUED Performance Indicator OPERATE RESPONSIBLY CLOSE THE LOOP 1 Foster a safe work environment 5 Become carbon neutral by 2042 and achieve net zero by 2050 1.1 Total Recordable Injury Frequency Rate (TRIFR) ≤1 5.1 Multi-year targets under development for Scope 1 and 2 1.2 Lost Time Injury Frequency Rate (LTIR) ≤0.10 6 Achieve no waste to landfill 1.3 Achieve and maintain a safety culture index in the survey top quartile 6.1 Build resource renewal capacity to transform 120k tonnes of ASR per year into new 1.4 Eliminate critical safety risks, Critical Risk Incident Frequency Rate (CRIFR) ≤0.50 products 2 Close gender gap 7 Close materials loops further by expanding capacity and services2 2.1 25% women in manager positions and above1 7.1 Close loops by expanding secondary metal volumes 2.2 Reach 0% gender pay gap across Sims Limited 7.2 Recycle 200,000 tonnes of cloud material 2.3 Achieve representation of women on the board ≥40% 7.3 Expand municipal recycling coverage by 50% 3 Develop a skilled and engaged workforce 7.4 Capture methane from landfill outside Australia and New Zealand3 3.1 Maintain an engaged and satisfied workforce as demonstrated by employee engagement survey results in the top quartile 3.2 Invest in education by increasing the number of available career development training programmes by 50% and promoting them 3.3 Improve annual employee performance review process to align with Sims Limited’s PARTNER FOR CHANGE purpose; incorporate role competencies and a skills development plan 3.4 Ensure management incentive plan is consistent with sustainability goals 8 Build trusted relationships with our communities 8.1 Establish at key sites a community index survey; track progress for continuous 4 Ensure transparency on how our business is conducted in an ethical manner improvement 4.1 Train all employees and agents on our Code of Conduct, anti-corruption and anti- 8.2 Annually, invest 0.5% of three-year rolling pre-tax profits in programmes that support bribery environmental stewardship and economic empowerment 4.2 Provide all employees with training on human rights, modern slavery and labour rights 8.3 Dedicate paid employee time for community engagement/volunteerism activities to raise awareness and help fight human rights violations 9 Create new business models that further the circular economy 4.3 Develop a supplier Code of Conduct and implement supply chain due 9.1 Generate 10% of our EBIT from new business models and opportunities diligence to identify and address high risk of human rights violations and that enable the circular economy unethical practices 1 Managers that sit at CEO-1 and CEO-2 in reporting structure 2 For more details, take a look at our Growth Strategy. 3 Under review
SIMS LIMITED | 19 About Us The Sims Purpose Managing Sustainability Our Performance About This Report THE SIMS PURPOSE THE SIMS LIMITED SUSTAINABILITY STRATEGY CONTINUED By operating responsibly, we are looking to reinforce the foundation of a sustainable Each of our sustainability pillars With our focused strategy, company where responsible and ethical business practices are upheld, and employees is intentionally aligned to one we are entering into new are protected, engaged and developed to strengthen our most important internal United Nations Sustainable adjacencies and creating new equity: people. Development Goal (UN SDGs). business models that keep We understand the value of resources in use at their highest the 17 UN SDGs, and we fully value for as long as possible. support the vision they strive We are a unique business that Closing the loop is what we do best. We help many close their material loops, to accomplish. The best way delivers on our strategic growth and we commit to investing in technologies that will enable us to extract more value we can support that vision is strategy by delivering strong from the secondary materials we get. But even better, we are raising the bar on by being intentional agents of ESG outcomes and profits. sustainability by closing our own materials loops and making the circular economy not change and focusing on the UN FY20 marks the beginning of only our business, but the principle we follow on how we operate. SDGs we can impact the most. a dramatic transformation for Those goals are: the world, and by executing on • Decent Work and Economic our sustainability strategy, we Partnering for change is the only way to amplify our impact and create shared Growth are setting Sims up to thrive for value. We commit to working with our value chain partners to create new business many years to come. • Climate Action models that support a circular economy and engage with our communities to build • Responsible Consumption “ trusted relationships. and Production What’s really exciting is the opportunity for this traditional industry to redefine itself as a critical link in a global circular economy. In Sims Limited’s case, this means a companywide call to innovation, and an invitation to investors to reimagine themselves as sustainability advocates and communities as partners for change. Not all company or city climate-action plans include circular economy, but a 1.5°C scenario won’t be achieved without it! Terry Nelidov, Managing Director, Erb Institute at the University of Michigan
SIMS LIMITED | 20 About Us The Sims Purpose Managing Sustainability Our Performance About This Report THE SIMS PURPOSE Recycling and Reusing the Cloud As the global demand for estimated 2 million tonnes of Through refurbishment and data centre storage grows, equipment is expected to be redistribution, SLS is helping equipment at these facilities is available for decommissioning clients eliminate electronic being upgraded and expanded each year. waste and advance their zero- at a rapid pace. Instead of waste targets, while minimising disposing end-of-life servers To accelerate the transition to costs and retaining value. and computing equipment, Sims a more circular economy, SLS Lifecycle Services (SLS) is is helping companies securely working with data centres and manage hardware in their data enterprises to “recycle the cloud” centres. Once data centre and redeploy retired hardware. material is decommissioned, SLS works with clients to Worldwide, spending on cloud provide guidance on how to best IT infrastructure is expected to process equipment. Often, in grow at a five-year compound accordance to client contracts, annual growth rate of 10.4 servers are dismantled to percent, reaching $109.3 billion recover components that still in 2024 and accounting for 63.6 possess value outside the percent of total IT infrastructure data centre environment. spend, according to IDC. Refurbished parts may be Currently, data centres utilise placed into inventory and reused an estimated 6 million tonnes to build remanufactured servers. of rack and server material. In other instances, equipment is Considering the lifecycle of directly deployed back into data data centre servers averages centres or sold externally. between three to five years, an Through refurbishment and redistributions, Sims Lifecycle Services is helping clients eliminate e-waste and advance their zero-waste targets, while minimising costs.
SIMS LIMITED | 21 About Us The Sims Purpose Managing Sustainability Our Performance About This Report THE SIMS PURPOSE How Sims Limited Creates Value Sustainable growth creates economic opportunities, environmental and social benefits, and increases business resilience. This transition requires a systemic shift that closes, optimises and values resource loops across the value chain. What We Rely On What We Do The Value We Create Natural Capital Natural Capital • Diverting resources • Metal scrap bought from from landfills and individuals to large companies reducing demand and municipalities for virgin materials, Metal Recycling Electronic Lifecycle Services including GHG • E-waste take-back programmes emissions reductions and collaborations with brands Recovering, processing and E-recovery and IT asset and energy savings selling steel, iron, copper and disposition (ITAD) for regional and • Curbside recycling including aluminium to manufacturers global businesses, data centres • 8.2m tonnes of metal, glass, plastic and paper and electronic original equipment secondary metals recycled annually Financial manufacturers (OEMs) • 600k tonnes of Capital Manufactured Capital municipal curbside • Delivering recycling processed • $1.2bn property, plant and $4.9bn in sales equipment assets • 24.6k tonnes of cloud revenue and material recovered shareholder returns Human Capital • 4,000 employees across 200 facilities all over the world Financial Capital Human Capital Social Capital • Attracting long-term investment • Providing fair • Advancing the Municipal Recycling Resource Renewal and remuneration; circular economy developing a safe, and supporting local Social Capital Solutions for curbside Renewable Energy healthy, engaged and economies by having • Strategic relationships with recycling in major cities diverse workforce nearly all of our Utilising auto shredder communities, customers, industry globally including spending done with residue (ASR) and landfill hiring from the local associations, government, local suppliers gases to create energy and community suppliers and other specialists useful products for society
SIMS LIMITED | 22 About Us The Sims Purpose Managing Sustainability Our Performance About This Report THE SIMS PURPOSE Demystifying Municipal Recycling When we drop an empty plastic bottle or yesterday’s newspaper into our curbside recycling bin, few of us think of ourselves as an essential supplier to a global, multibillion-dollar value chain. But the actions we take to sort our recyclables in “ When more people understand the importance of reducing waste in a finite world, I believe more people will recycle and find ways to do a better job of it. Tom Outerbridge, general manager of Sims Municipal Recycling our kitchens is the first step in the path toward ensuring that our used household materials find a second life in new products and advance a circular economy. Global Markets and Likewise, when China, the largest consumer of recycled materials, stopped Few people understand this better than Fluctuating Demand the import of recycled material in 2018, Tom Outerbridge, who has been the municipalities across North America and Similar to farming or mining, the Europe felt the ripple effects. “For us, general manager of Sims Municipal recycling business is impacted by both the impact on the market is very material As a result of this market disruption, Recycling (SMR) for more than 15 years. global markets and local conditions. specific,” Outerbridge says. “Where many municipalities are facing higher SMR is the processor and marketer of On the demand side, a natural disaster China was playing the biggest role as costs to cover processing fees. all commingled curbside recyclables or change in government policy half a the world’s largest consumer of recycled “Recycling has always had costs collected in New York City, as well as world away can seed disruptions. Earlier materials was in the area of residential associated with it. These have often been surrounding towns and cities. SMR also in 2020, when the COVID crisis and curbside paper and in mixed plastic.” partly or largely offset by the sale value handles recyclables for Palm Beach economic downturn punctured oil prices, of recycled materials, but this model County, Florida. Outerbridge is currently it also cut the price of new plastic – SMR was less impacted by the ban on is now upside down due to depressed responsible for approximately 600,000 making drink bottles made from recycled mixed plastics than other MRFs because commodity values,” Outerbridge explains. tonnes per year of recyclables produced by plastic resin less economically viable. it had invested in optical sensors and 11 million people. Outerbridge sees Extended Producer Why? Because every piece of plastic other state-of-the-art equipment that “We take in mixed recyclables – metal starts life as a fossil fuel and recycled enabled it to fully sort its plastics stream Responsibility (EPR) legislation for cans, glass bottles and plastic containers materials have to compete with virgin raw into resin categories of type and color packaging as one way to offset recycling – at our material recovery facilities (MRFs), materials prices. to the specifications of North American costs to municipalities. where they are sorted into distinct resin markets. “If we think of recycling as a public types and different grades of metal so they service and an environmental necessity, “Our paper, on the other hand, was going can be sold into the secondary materials Sims Municipal Recycling to China. It had the biggest, newest mills you can look at EPR as a way to market. We process them to the degree that they become suitable feedstock for the is currently responsible for consuming residential mixed paper, and decouple that service from volatile China was highly dependent on imported commodity markets,” he says. “The fee next stage in the manufacturing process,” processing approximately associated with the package is tied to the fibre for the paper products. That part Outerbridge explains. 600,000 tonnes per year of value or cost of managing that material.” of the business has been severely recyclables produced by impacted.” 11 million people
SIMS LIMITED | 23 About Us The Sims Purpose Managing Sustainability Our Performance About This Report THE SIMS PURPOSE DEMYSTIFYING MUNICIPAL RECYCLING CONTINUED Local Participation and Increasing Value Across legislators to help incentivise product raw materials,” Outerbridge says. “Yes, manufacturers to choose materials that there’s an added benefit that you’re not Education the Recycling Supply are most favorable for recycling. putting a plastic bottle or paper into the On the supply side, the recycling Chain When more people understand the landfill. But really the big environmental benefit in terms of energy consumption, business is very grassroots and importance of reducing waste in a finite Improving how our society uses materials water consumption and CO2 emissions is locally driven. The rules, practices and world, Outerbridge believes more people is fundamental to our economic and that you’re replacing virgin raw materials community norms around recycling will recycle and find ways to do a better environmental future. That’s why, in with recycled materials to make new vary considerably from place to place, job of it. addition to overseeing daily operations, products. It’s far more efficient to make contributing to dramatically different local Outerbridge often can be found working new aluminium out of recycled aluminium recycling levels. Because of that, SMR “The much bigger reward to the with stakeholders across the value chain versus bauxite or paper out of recycled works with its municipalities on public environment and to the planet is that to demystify recycling and strengthen the fibre versus raw virgin pulp.” education to increase recycling rates and you are displacing the use of virgin system. encourages that the right items reach the recycling bins without contamination. • Because successful recyclability starts in the product design phase, “The success of our business is more and more brand owners are obviously dependent to a large extent on using the equipment at SMR’s New the market conditions and how good we York processing facility to test the are at operating,” Outerbridge says. “But recyclability of new packaging. the starting point for the whole business is: how well does the public participate?” • To enhance public awareness, Outerbridge and his staff regularly In New York, the recycling capture rate is promote the importance of reducing approximately 55 percent. “This means waste and recycling through its 45 percent of good recyclables – items education centre. Activities have that we want and that we have the ability ranged from open house events that to process – are still going into a garbage draw hundreds of New Yorkers to bag,” he says. “That’s in the order of hosting sustainability experts from 100,000-plus tonnes a year of material the World Council for Sustainability that is being sent to a landfill at a cost Business Development and United to the city. Some of it doesn’t have a Nations. huge amount of value, but we still have a • To help expand markets for recycling, market for it. A lot of it does have value.” Outerbridge works with trade associations, regional councils and
About Us The Sims Purpose Managing Sustainability Our Performance About This Report MANAGING S U S TA I N A B I L I T Y Accountability, Strategic Growth and Governance: Key to Our Sustainability Approach
SIMS LIMITED | 25 About Us The Sims Purpose Managing Sustainability Our Performance About This Report M A N AG I N G S U S TA I N A B I L I T Y Governance Trust in our business depends on robust governance and processes that address the most important sustainability impacts and opportunities for our stakeholders and our business. We’ve taken a deep dive into these issues to evolve and strengthen how we manage sustainability. Sims Limited’s Board of Directors and executive This is fundamental to fostering investor confidence and the Board met monthly at a minimum. Board members leadership team (ELT) are committed to operating driving higher value for shareholders through prudent participated in key management committees and the business in an ethical manner consistent with the risk management and a culture that encourages ethical meetings that were established to address the risks highest standards of corporate governance. conduct, accountability and sound business practices. associated with COVID-19. Notably, the chair of the Audit Committee of the Board participated in the global Our Board is responsible for establishing sound You can find Sims Limited’s Board and Committee Finance Cash Flow Management Committee meetings corporate governance practices that ensure we Charters, General Codes and Policies, including the and the chair of the Safety, Health, Environment, uphold our core values of safety, integrity, respect, Safety, Heath, Environment and Community Policies, Community and Sustainability (SHECS) Committee of transparency, excellence and social responsibility. online. You can also read more about our approach to the Board attended the company’s global COVID-19 responsible business on page 68 of this report. Response Team meetings. The meetings established They also provide strategic guidance, set key protocols to assist and protect employees and prevent objectives, monitor performance and validate that The Board met 12 times during FY20. The meetings the spread of the virus within our sites, as well as help Sims Limited’s internal control, risk management and involved strategy review and extensive interaction with execute across our sites the business continuity plan reporting procedures are adequate and effective, members of the executive leadership team, as well as triggered by the pandemic. and they name the CEO who will manage the overall the regular oversight exercised by the Board through organisation. its meetings. As COVID-19 evolved into a pandemic, Our Core Values Safety Transparency Integrity Excellence Respect Social Responsibility Safety will always We ensure a sense We conduct all business We commit to We will treat each We aim to be the be our first priority. of appropriate with integrity and excellence in other, our customers, world’s safest and We believe that transparency adhere to the highest everything we do and visitors and community most responsible all incidents are in everything we do. standard of ethical champion continuous members with respect recycling and recovery preventable and we business conduct. development and and dignity. company. are committed to a sharing of best practices goal of zero injuries. across the company.
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