SUSTAINABILITY REPORT 2023

Introduction

Mak e a C i r c l e of J o y
As we strive to “make a circle of joy,” our times call for initiatives that transcend industry
boundaries and roles.
As a leader in the resource recycling business, the ENVIPRO Group aims to contribute tocreate a sustainable society. In doing so, we strive to evolve beyond conventional boundaries.
The collection and recycling of waste materials go beyond just reducing environmental
impact. By circulating recycled resources, we aim to generate new manufacturing andrevitalize local communities, ultimately bringing joy to all stakeholders.
The ENVIPRO Group is committed to being a driving force that drives this cycle of joy inthe circular economy, looking into the future as we take on new challenges.
In the interest of “Make a circle of joy,” we aim to bring smiles to the faces of all as wework together toward a society of sustainability and abundance.

Lithium-ion Battery
Recycling BusinessResource Circulation Business

Environment Management
Consulting Business

Global Trading Business
Welfare Service Business for
People with Disabilities

Contents
01 Introduction
02 Contents, Editorial Policy
03 Our Concept
04 History of the ENVIPRO Group
05 Message from the President

06 The ENVIPRO Group’s Growth Strategy
06 TOP INTERVIEW
08 Materiality Items (Priority Issues) to Realize
our Mission

09 The Value Creation Process
10 Formulation of a Medium-Term
Management Plan

14 ENVIPRO Group Businesses
15 Overall View of Our Businesses
16 Highlights
17 Resource Circulation Business21 Global Trading Business
23 Lithium-ion Battery Recycling Business
25 Welfare Service Business for People
with Disabilities

26 Environment Management Consulting
Business

27 ESG Initiatives
28 Environment
34 Social
34 Special Feature
Discussion

42

Governance

45 Data Section
45 Company Profile
46 Locations
48 Financial and

Non-Financial Data

Editorial Policy
This sustainability report is issued by ENVIPROHOLDINGS Inc. The report describes the corporate philosophy of the
ENVIPRO Group and our overall activities in non-financial areas
including business strategies and ESG aspects. Some businessprospects, including future plans, are also presented here.

Scope of Report
The report presents the activities of ENVIPRO HOLDINGS Inc. and thefollowing 11 subsidiary companies: ECONECOL Inc., NEWSCON Inc.,
3WM Co., Ltd., Cyterrace Co., Ltd., Kuroda Recycle Co., Ltd., SYN ECO
Inc., ASTOCO Inc., Toyo Rubber Chip Co., Ltd., Nitto Kako Co., Ltd.,
Bright Innovation Co., Ltd., and VOLTA Inc.

Reporting Period
July 2022 to June 2023 (The report covers some activities and plansoutside this period.)Our Concept
Mission Statement

Contribute to Create a Sustainable Society
Corporate Philosophy

Creative Company

Circular Company

Company Pursuing Virtue

Engage in the ongoing creation of businesses that society needs

Help others, get the best out of others, and share with others tomake a constant loop of joy

Pursue the virtue of companies and people, in perpetuity• E ngage in everyday work in the spirit with which the company wasestablished• Create new businesses in the spirit of the founder for generations to come• Every employee to exert efforts to become the leading player of a businessthat suits them• H elp each other and lend a hand to others to make your work more
pleasant• Use every material repeatedly, preserving their value for as long as possible• Don’t choose the easy path but choose the path which serves others• Do what others don’t do by taking advantage of your distinctive qualities• Be grateful for your life and don’t be arrogant• Share the profit and joy with the people you live with* Supervised by Yoshiharu Shimizu, Mirai Design Institute, Enishiya Established on March 20, 2004

The Key Values of the ENVIPRO Group, and Its Corporate DNA
Around 2000, the business environment began to undergo major changes. A growing awareness of acircular economy society and environmental issues spurred an understanding about the need forrecycling and the establishment of various laws and regulations. The ENVIPRO Group is growing at anincreasing rate. We are changing rapidly, and our employees are growing and beginning to expand
across regions.
Around that time, I began to feel a vague sense of anxiety. Even though the company was beginningto develop well, I rediscovered what I had been searching for so long–that something that had been
missing. The tree grows, and the trunk grows, and the roots that support it need to grow bigger.

In 2004, we established our corporate philosophy, rooted in a strong sense that we lacked a solid
philosophy and principles that would remain unshaken by surface changes.
We spent about a year weaving together the founder’s life philosophy, principles, and the habit ofsaying, the life philosophy and thoughts of the executives, and other ideas inherent in the company
and making them all explicit.
This is how we have developed our corporate philosophy, our “most valuable idea.” It serves as ourcode of conduct and will remain intact no matter how much the environment around us changes. We
anticipate a permanence that will last for the next 2,000 years.

4

ENVIPRO Group Sustainability Report 2023

History of the ENVIPRO GroupSANO MARUKA SHOTEN, the predecessor to the ENVIPRO Group, was founded in March 1950 by Katsuyoshi Sano (the father ofTomikazu Sano, the current president) in the city of Fujinomiya, Shizuoka Prefecture. Established as a ferrous scrap wholesaler,
the Group has leveraged its strength in metal recycling to expand its operations. In recent years, the Group has taken on a host of
new business challenges to make the circular economy a reality.

The Group Continues to Expand

A Base for Business Expansion

Establishment of ENVIPRO HOLDINGS and Its IPO

1950 1960 1970 1980 1990 2000

2010

1950 ■Katsuyoshi Sano (father of Tomikazu Sano, president

2010 ■Established ECONECOL HOLDINGS Inc. (current ENVIPRO

2000 ■Established Fuji Eco Cycle Co., Ltd. as a jointof ENVIPRO HOLDINGS Inc.) established SANOMARUKA SHOTEN as a ferrous scrap wholesaler inthe city of Fujinomiya, Shizuoka Prefecture.

venture with Fujitsu General Limited.

Taking on New Business Challenges

2020
2016 ■Established Bright Innovation Co., Ltd. to develop the

HOLDINGS Inc.)

2003 ■Established ARBIZ CORPORATION as a joint

Environmental Management Consulting Business.

2011 ■Acquired a 100% stake in Recycle Support Service LLC

venture with USS Co., Ltd.

(present SYN ECO Inc.), making it a subsidiary.

2004 ■Established corporate philosophy.

2013 ■Listed on the Second Section of the Tokyo Stock Exchange.

2018 ■Established VOLTA Inc. to engage in the Lithium-ion
Battery Recycling Business.
Listed on the First Section of the Tokyo Stock Exchange.

■Joined the RE100 initiative.

■

Received ministerial authorization as a resource
recovery facility for automobile shredder residue(ASR) pursuant to the Act on Recycling, etc. of
End-of-Life Vehicles.

■car and maintenance parts export business.

1992 ■Launched a trading
1997 ■Installed a large

3WM Co., Ltd. established 3WM CHILE IMPORTEXPORT LIMITADA (Chile).

■

shredder at thehead office plant.
売上構成比の変容
売上構成比の変容
Installation of large shredder

5.0
5.0

2626
%%

2727
%%

40.0
4.0

2.0
2.0

2023
2023

2024
2024

Forecast
Forecast

0.0
0.0

Moved listing to the Prime Market of the Tokyo Stock
Exchange.

2015 ■Acquired a 100% stake in Toyo Rubber Chip Co., Ltd., which
engages in waste rubber recycling and manufacturing/marketing of rubber products, making it a subsidiary.

Established Cyterrace Co., Ltd. to take over the logistics
agency business from 3WM Co., Ltd.

■sells industrial rubber and plastic products, making it asubsidiary.

Net Sales and Ordinary Profit
Net sales

Ordinary profit

6666
%%

7777
%%

1.0
1.0
2022
2022

ECONECOL Inc. Wood Recycling Center)
■

4949
%%

3.0
3.0

20.0
2.0
0.0
0.0

Existing
Existing
businessbusiness NewNew
company
company
M&A
M&A Equity
Equityin earnings
in earnings
of affiliatesof affiliates

4.0
4.0

2022 ■ECONECOL Inc. absorbed Fujimi BMS Co., Ltd. (currently

2023 ■Acquired shares in Nitto Kako Co., Ltd., which manufactures and(Billions(Billionsof yen)of yen)Existing
Existing
businessbusiness NewNew
company
company M&A
M&A

Established ECOMMIT Inc. (present ASTOCO Inc.) to provide
welfare services for people with disabilities.

■

経常利益構成比の変容
経常利益構成比の変容

Changes in the Composition of Ordinary Profit

Changes in the Composition of Net Sales(Billions(Billionsof yen)of yen)Ltd. (currently ECONECOL Inc. Wood Recycling Center), awood recycling company, and made it a sub-subsidiary.

Listing on the Tokyo Stock ExchangeLtd., which engages in the resource recycling
business, making it a subsidiary.

business.

2525%%

2021 ■ECONECOL Inc. acquired a 100% stake in Fujimi BMS Co.,2008 ■Acquired a 100% stake in Kuroda Recycle Co.,

1989 ■Began management based on our management plan.

60.0
6.0

established NEWSCON Inc.

2006 ■Established 3WM Co., Ltd. to engage in the used

The company’s founder, who bought a pile ofauctioned properties from a closed foundry

80.0
8.0

2019 ■Endorsed the TCFD Declaration
2020 ■Took over the trading business of ECONECOL Inc. and

2022
2022

2023
2023

2024
2024

Forecast
Forecast

The company entered the trading business in 1992 and installed a large shredder in 1997. These two events prompted mergers
and acquisitions (M&A) and led to the establishment of new companies and joint ventures. The ENVIPRO Group has seen promisingbusinesses emerge from ventures into successful new companies. Our M&A activities have focused on expanding into recycling
sectors such as rubber and wood, as well as revitalizing businesses by leveraging the ENVIPRO Group’s expertise. We will continue
to actively pursue such initiatives to drive the Group’s growth.

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Forecast

ME SSA GE FR O M T H E P R E S I D E N T

Lead a Circular Economy
The drive to achieve carbon neutrality by 2050 has begun prompting a dramatic shift in the concept of“manufacturing.”
In addition to making good products, the recycling of used products after sale is becoming an integral part ofmanufacturing. This is because reusing the materials contained in products can greatly reduce greenhousegas emissions.
In line with this trend, we have set “Lead a circular economy” as our strategic concept and will concentrate
our efforts on two areas: “CE(circular economy) supporting manufacturing” and “CE supporting local
communities.”
Under the first category, “CE supporting manufacturing,” we will collect and store used products across awide region, conduct sophisticated recycling activities, make environmental data visible, and take the leadover our competitors in bringing specific examples to market.
In the category of “CE supporting local communities,” we are essentially focusing on creating a circular
economy from urban waste. We aim to engage closely with local government waste management programs toachieve operations that are efficient and highly environmentally impactful. Although these efforts will require aslightly longer timeframe, we will actively pursue this area and make it part of our business domain, as we
believe this area has significant social importance.
The company’s main focus is on resolving challenges toward achieving a circular society, so our purpose andbusiness growth are aligned with contributing to society. As social contribution is an extension of our business
aims, I feel no hesitation in devoting myself wholeheartedly to the growth of the ENVIPRO Group.
Naturally, I will do my utomost to share the joy of this challenge among our employees.
“Let us live and be happy today.” (Dr. Koh Hirasawa)

Forward, MYWAY forward.
President, Representative Director

Tomikazu SanoENVIPRO Group Sustainability Report 2023

1. Growth Strategy

6

TOP INTERVIEW

From the bottom of my heart,
I was convinced that our business growth would contribute to society.
Thoughts on Our Strategic Concept
First, I would like to talk about the strategic concept of “Lead a circular economy,” which we set forth in our
medium-term management plan. Although we already support society through our presence in the recycling
industry, we intentionally chose the word “leading” because we firmly believe that the company’s growth is in sync
with social contribution. This conviction has eliminated any hesitation we might have had about driving the growthof our business.
Viewing this strategic concept as a coin, one side is “CE supporting manufacturing” and the other is “CE supporting
local communities.”

CE Supporting Manufacturing

CE Supporting Local Communities

In a carbon-neutral world, manufacturing companies will be expected to take responsibility for the entire supply
chain, including sourcing, production, and the collection and recycling of products after use. In the future, we
anticipate that global manufacturers worth trillions of yen will internalize the concept of a circular economy.
However, many companies still rely on outsourcing their recycling to entities like the ENVIPRO Group. This presents
a new role that ENVIPRO Group should play.
The key lies in establishing a recycling system. While Japan has made some progress in constructing what might
be termed logistics “arteries,” the “veins” of logistics remain far from being well-developed. Creating a system forrecycling is an urgent task, and we aspire to take the lead by establishing industry precedents. At the same time, inorder to “Lead a circular economy,” we need to go beyond the traditional concepts of recycling and waste
management and transform ourselves into a producer of raw materials.
If we can pave the way to build momentum in the industry as a whole, the Japanese economy will surely change asa result.

It would be no overstatement to say that our efforts to create “CE supporting local communities” have the ultimate
goal of building circular economy for urban waste. Currently, urban waste in Japan is sorted according to various
laws, such as the Act on the Promotion of Sorted Collection and Recycling of Containers and the Packaging and the
Plastic Resource Circulation Act.
However, waste treatment is largely limited to simple incineration or the utilization of waste in power generation.
To address this situation, we are collaborating with incinerator manufacturers and engaging in demonstration
projects to chemically convert plastic waste into oil. Our ultimate goal is to create an urban oil field and produce oilfrom municipal waste. Achieving this goal will take some time–maybe as much as 10 years.
Additionally, there are some things that ENVIPRO Group cannot accomplish on its own. That being said, I think therole of the private sector will be crucial, and I sense that momentum is already building.
As an immediate action, we have launched an initiative to accept general waste throughout the year at SYN ECO
Plaza Azumino in the city of Azumino, Nagano Prefecture. We aim to gradually increase our role, beginning withminor involvement in local waste management policies.

ENVIPRO Group Sustainability Report 2023

1. Growth Strategy

7
TOP INTERVIEW

industry is one such example. The financial industry is becoming involved from the planning stages of new plants,
allowing them to obtain early-stage information about the dismantling of old plants. This is a significant departurefrom the traditional style of waiting to purchase scrap until dismantling starts. Collaboration allows operators to
capture dismantling-related information from several years ago. The financial industry is currently exploring
potentially favorable mechanisms, and our Group companies responsible for this business have already shown
remarkable growth.

Business Withdrawal Spawns the Logistics Agency Business

Making Nitto Kako a Subsidiary and Entering the Polymer Business
A key element of our effort to lead a circular economy is our newly launched polymer business, which was madepossible through the acquisition of Nitto Kako Co., Ltd. This company manufactures products from natural andsynthetic rubber. Nitto Kako has robust quality assurance standards and solid capabilities as a pure manufacturer.
Meanwhile, Group company Toyo Rubber Chip Co., Ltd., produces artificial turf infills and mats by grinding rubber
derived from waste materials. We believe that the synergy between these two companies will be vital to achieving acircular economy in the rubber industry. The tire industry already has a collection system in place; the challenge
lies in creating an outlet for the recycled materials. We are committed to rubber-to-rubber material recycling using
cryogenic crushing technology, with the ultimate goal of achieving tire-to-tire recycling. We aim to demonstrate theavailability of raw materials that meet the quality standards for regeneration as tires and further develop
applications to create a profitable business. We have high expectations for Nitto Kako being the driving force inachieving these goals.

Financial Collaboration Opens Up Possibilities for the Dismantling Industry
Dismantling is one area of business we are currently focusing on that is relatively impervious to market fluctuations.
By undertaking dismantling projects, we can generate profits nationwide from the early stages of waste collection.
Furthermore, due to collaboration with the financial industry, the very nature of the dismantling industry is changing
significantly. As background, Japan’s Banking Act is being revised, and an expanded scope of financial services is
encouraging the exploration of various businesses within the context of the circular economy. The dismantling

In the midst of rapid changes, we decided to withdraw from certain business areas. One area—the sale of usedcars and parts—had been handled by 3WM Co., Ltd. Although our presence in the United Arab Emirates was asignificant strength, the entry of competitors from other countries reduced this advantage, and profitability became
an issue. However, just as one tree decays, new sprouts also emerge, such as Cyterrace Co., Ltd., a logistics
agent. We are accumulating achievements by having employees who were in charge of logistics at 3WM
demonstrate their skills in a new field. The words of Yelü Chucai, who was once an adviser to Kublai Khan, come tomind: “Preventing one harm is better than creating one benefit” We are once again realizing the importance ofscrap and build.

Build a Platform Filled with Good-Quality Energy
Lastly, I would like to talk about the most important asset for the Group, which is our human capital. In our
medium-term management plan, we have set the goal of “creating 100 business promoters” and we aim to “build
a platform filled with good-quality energy where employees can work energetically.” The revitalization of ourbusiness requires an organization that is autonomous and filled with creativity. To achieve this, we want to foster aculture where individuals proactively seek out various opportunities and challenges while accepting andencouraging a spirit of taking on new challenges. Furthermore, our expansion into new fields such as lithium-ion
batteries has brought us opportunities to meet diverse experts and has had a positive impact on our operations. I
hope that each of us will be motivated to grow, stimulated by changes in the environment and new interactions.
As a foundation for nurturing our employees, we will strive to create an organization that is more conducive to workand provides a fulfilling work experience. While the term “human capital investment” may sound nice, we need to
go beyond the terminology and ensure employees are rewarded properly for their efforts. Furthermore, to create aworkplace environment where diverse individuals can thrive, we need to consider the introduction of newtechnologies and facilities. I recognize the need to manage the company to ensure it has the right attitude toundertake these initiatives and aim for our solid growth as a group.

1. Growth Strategy

ENVIPRO Group Sustainability Report 2023

8

Materiality Items (Priority Issues) to Realize Our Mission
Need to Respond
01 AtoPressing
Climate Change

to Achieve Carbon
02 Looking
Neutrality by 2050

Various social issues in Japan and overseas are

Society is likely to press more firmly for carbon

The ENVIPRO Group’s goal is to achieve a sustainable society by “using every material repeatedly, preserving

leading to unsustainable conditions. In 2023, average

neutrality as climate change advances. Achieving

their value for as long as possible.” We promote RE100 and produce green materials*4, including ferrous scrap

global temperatures are expected to reach all-timecarbon neutrality requires not only the electrificationand other non-ferrous metals and minor metals that are necessary to support the electrification of economic

highs, sparking discussions about the onset of an eraof economic activity and the transition to renewable

activities. By integrating the production of these green materials into arterial procurement and manufacturingof the global boiling—clearly more severe than global

energy for power consumption but also theprocesses, we aim to realize a circular economy and establish a supply chain that allows products andwarming.

reassessment and intentional redesign of productmaterials to continue circulating while maintaining their value.

The external environment around us is also

lifecycles. This means taking a circular economy

The market related to the circular economy is expected to expand significantly both in Japan and overseas. In

undergoing major changes.

approach to manufacturing, usage, and disposal.

Japan, the market is projected to reach a value of ¥80 trillion by 2030 and ¥120 trillion by 2050.

Societal Trends Surrounding
the ENVIPRO Group

Major emission sources, steel,aluminum, cement, plastics, food Total emission
Total emission
reduction
reduction

Long-Term Trends

GX

GREEN TRANSFORMATIONThe Big Picture on Greenhouse Gas Emissions:
Tackling Overlooked Emissions*1
Current
total emissions
Current
total emissionsDX

DIGITAL TRANSFORMATION

EnergyEnergyMedium- and Short-Term Trends
Demand for the establishment of a green valuechain
Growing international competition for resources
Surfacing social issues related to waste plastics
Data utilization in non-IT businesses
Increase in utilization of IoT, AI, robotics
Increasing competition for human resources

Products
Products

Identifying Materiality Items (Priority Issues) as a Company That Leads the Circular Economy
ThemesCircular
CirculareconomyeconomyProduction of
Green
Materials

5555
% %

New technologies,
New technologies,
CCS,change
food change
CCS, food

Zero emissions
Zero emissions

According to the Ellen MacArthur Foundation *2, 55% of all
greenhouse gas emissions can be reduced through renewableenergy conversion, while the remaining 45% are attributed to the
manufacturing and use of products. Reducing this 45% can beaddressed through a circular economy approach. In Japan, it isalso estimated that in some sectors resource circulation has thepotential to reduce as much as 36% of emissions that contributeto greenhouse gases*3.

Materiality Items (Priority Issues)

Corresponding SDG Targets

Increasing demand for green materials
in the supply chain

in 2050
in 2050

4545
% %

45
5555
% % 45%%to Expand the
03 Working
Circular Economy

1Increasing demand for ferrous scrap due to buildingof additional electric furnaces

Increasing demand for nonferrous metals and minor
metals due to electrification
3 Promotion of advanced resource circulation of waste
plastics
2

Productivity,
DX

Reducing labor required in the
production process, promotion of datautilization in business activities

Personnel
development

Investment in human resources topromote business activities*1 Source: “Completing the picture: How the circular economy tackles climate change,” the Ellen MacArthur Foundation*2 E llen MacArthur Foundation: This organization was established in the United Kingdom in 2010 with the vision of accelerating the transition to a circular economy. Since its establishment, the foundation has engaged in various activities, including awareness campaigns through information dissemination and the establishment of a global network transcending national boundaries.
*3 Source: “Reference Materials on the Second Progress Check of the Fourth Basic Plan for Establishing a Sound Material-Cycle Society and the Circular Economy Process Chart,” Ministry of the Environment*4 Green materials: Materials made from terrestrial resources (waste) in ways that do not produce greenhouse gases or produce very little greenhouse gases (recycled raw materials and recycled materials)

1. Growth Strategy

ENVIPRO Group Sustainability Report 2023

9

The Value Creation Process

Mission Statement“Contribute to Create a Sustainable Society”
This is the ENVIPRO Group’s significance in the world and its purpose and aspirations until 2050.

Business Model

Materiality Items (Priority Issues)
Increasing demand for green

Strategy Concept

P8materials in the supply chain

Reducing labor required in the production

process, promotion of data utilization inbusiness activities

Targets of the Medium-Term Management
Plan (Mid-Term Plan 2028)
P10

Financial Capital

Lead a circular economy

Net sales

Investment in human resources to promote

Ordinary profit

business activities¥80.0billion¥5.0billion

13.0%
9.0%

ROE

Inputs(Year ended June 2023)

Financial Capital
Total assets

CE supporting
local communities

CE supporting
manufacturing

48.6%

Manufacturing CapitalGroup companies
Domestic plants
Shipping ports
Overseas locations

14
12
13
4

Capital investment ¥4.6billion
Intellectual Capital
Patents held

19
632

Natural Capital
Resource recovery rate 94.3%
Electric power fromrenewable sources
86.5%
Reduction in
CO2 emissions
50.1%

Manufacturing Capital¥20.0billion• LIB recycling business• Introduction of new technology
The ENVIPRO Group will take the lead in building momentum for the circular
economy throughout Japan and contribute to create a sustainable society.

Strengths of the ENVIPRO Group

Lithium-ion Battery
Recycling Business

Global Trading Business

Growth Platform

OthersImage for the organization:
A disciplined group of autonomous individuals with emergent abilities

Corporate Philosophy:
The key values of the ENVIPRO Group,and its corporate DNA (no timeline)

Etc.

Intellectual Capital

P42

P38

Laboratory expansion

Socialvalue

Environmental
value

Natural environment
 elping to create aHdecarbonized society

Local Community
 evelopment of local resource recyclingDfacilities
Employment andsolutions toemployment issues

Business Partners
 afe and secure response toSvarious needs in a
decarbonized society

Employees

Development of

P37

   100 business promoters
Promotion of diversity

P38

Natural Capital
RE100 by 2030
Carbon neutrality by 2050

P3

Economicvalue

New technology development

Human Capital

Welfare Service Business for People
with Disabilities
Environment Management
Consulting Business

Management Platform• Environmental improvement• M&A•Corporate culture•Technological capabilities •Trading capabilities•Logistics capabilities •Inventiveness•Sales capability•Productive capacity •Collection capability
Resource Circulation Business• Promotion of DX
P39

Laboratory expansion
Human Capital
Employees (consolidated)(Targets for the year ending June 2028)

Investment¥33.6billion

Equity ratio

ROIC

Value Provided

P31

P roviding an environment
where diverse humanresources can work withvigor and enthusiasm

Shareholders and Investors
Enhancing shareholder
returns throughsustainable growth1. Growth Strategy

ENVIPRO Group Sustainability Report 2023

10

Formulation of a Medium-Term Management Plan (Mid-Term Plan 2028)
Financial Targets of Mid-Term Plan 2028
Targets for the previous plan, Mid-Term Plan 2027, were net sales of ¥75.0 billion

and ordinary profit of ¥5.0 billion.

Net SalesM id-Term Plan 2028 targets net sales of ¥80.0 billion and ordinary profitof ¥5.0 billion

Year ending
June 2028

T he ordinary profit under Mid-Term Plan 2027 was postponed by one year,

Year ending June 2026

due to investment in human capital and soaring energy prices.

Year ending June 2024

I n addition to ROE, Mid-Term Plan 2028 sets ROIC as a new target, placing

Year ended June 2023

greater emphasis on return on investment than ever before.

Ordinary profit¥80.0billion¥5.0billion

13%

ROIC

¥68.0billion¥58.0billion¥49.1billion¥3.3billion¥2.2billion¥1.9billion

11%
10%
8%

-%
-%
6%

CAGR (2023→2028) 10%

CAGR (2023→2028) 21%

ROE

9%

Assumptions (From July 2023)

Notes: ROIC = (Ordinary profit x (1 - effective tax rate)) / ( equity + interest-bearing liabilities)
Equity and interest-bearing liabilities are averages of the beginning and end of the period.

Investment Portfolio

Ferrous scrap priceElectrolytic copper priceGold price

Silver price

Nickel priceCobalt priceExchange rate

¥50,000/t¥1,200/kg¥7,500/g¥85,000/kg¥2,800/kg¥4,000/kg¥130/USD

Investment in Human CapitalWe aim to invest ¥20 billion over the next five years.

We utilize a variety of recruitment methods, including new graduate and referral recruitment.

Our investment criteria are an internal rate of return (IRR) of 15% and return on

We use “joy of development” as a KPI and are expanding our education program.

investment (ROI) of 10%.

In the previous fiscal year, we raised salaries by 6.44%, including regular salary increases and rises in base salary.

We will continue to raise salaries at a stable and high level this fiscal year and beyond, and steadily return profits to employees.
Investment in Existing BusinessesWe focus on the active participation of women and foreigners.

Expansion of plants


Introduction of new technology, promotion of DXEnvironmental improvement,
strengthening of safety measures,
deterioration updates


¥

20

billionIRR

15

We have also set the number of women in management positions as a KPI.

%

Recruitment

Investment in Growth Businesses
Lithium-ion battery recycling business

Advanced plastic recycling business

10

Development

Secure human resources and intellectual property


Investment in M&A, etc.
Accelerating growth

Synergy creation
Alliance with growing companies


ROI

%

KPIs

Progress (June 2023)

Targets (June 2028)

Mid-career employment and new
graduate recruitment

Recruitment of business promoters

13 people

30 people

New graduate recruitment

4 people (joined in April 2024)

40 people

Diversification of recruitment methods

Recruitment of referred and retired personnel

11.2% of all employees

20% of all employees

Personnel development

Development business promoters

9 people

40 people

Sharing of knowledge
within the Group

Level of satisfaction with business schools

94.9%

100%

Joy of development

69.8% (June 2022)

90%

Retention rate

89.7%

95%

Employee satisfaction

Annual wage increase and increase of base pay

6.44%

Over 3%/year

Welfare facilities and systems

Satisfaction with the way of working -%Satisfaction with the way of working 80%

Active roles for diverse
human resources

Ratio of females in managerial positions

8.4%

20%

Ratio of non-Japanese nationals

4.0%

10%

Retention

1. Growth Strategy

ENVIPRO Group Sustainability Report 2023

11

Strategic Concept: Lead a Circular Economy
CE coordination
Provide consulting services

1and solutions in response to5

Collection of resources generated
within local communities
Provide local residents with useful services
including support for households withcorporate CE needs.

difficulties disposing of garbage, such as thecollection of hard-to-dispose-of waste andthe 24-hour collection of resources.

Optimize collection

2

6

Take advantage of the wide-area authorization
program and dismantling work to optimize the

Build partnerships
with local governments
Help governments advance their local
administration of resources, includingcollection of products found in the market.

compliance with the Plastic Resource Circulation
Act through the establishment and operation oftreatment facilities in the private sector.

Lead a Circular Economy

CE Supporting
Manufacturing

CE Supporting Local
Communities

Achieve a number of specific examples of “CE supporting manufacturing”
and “CE supporting local communities” ahead of competitors.
Take the initiative to increase the momentum of the circular economy across the country
and contribute to a sustainable society.

Application to all products

3

While centering on the capacity to recycle

Local-based recycling

7

Propose a local-based CE, including theemployment of people with disabilities and themetals and plastic, we conduct research andcollection of gold, silver and copper sedimentdevelopment activities for other advanced
CE functions

sludge from above ground resources.

Production of green materials

4

Work intensively to implement very
low-carbon production including

Return value to local residents

8

Conduct activities that aid local communities
for local revitalization, such as returning thethe internal production of materials

proceeds from local resources andfor LIBs, rubber and plastics.

organizing local community events.

1. Growth Strategy

ENVIPRO Group Sustainability Report 2023

12

Two Categories of Activities for the ENVIPRO Group to Lead a Circular Economy
CE Supporting Manufacturing

CE Supporting Local Communities

POINT 01

POINT 02

Traceability

Research and development functions

Green materials must be proven to have been produced
from above ground resources (waste).
We are working to develop a CE traceability system thattracks the recycling process.

We have established a “polymer circular laboratory” forresearch and development in smelting and otherbusinesses and for quick prototyping and the verification of
CE products.

Local Issues
Declining population

Rem
anu

fa

Eliminate the CO2
emitted in resource
circulation processes.

S ale scu
acturing Pro
Manufan
d
g
rin
tu
ac
remanuf

Resource Circulation Facilities
Equipped with sorting and compressing
systems, they process plastics, household
appliances, LIBs and other local resources in
the most suitable manner for material andchemical recycling.

Localgovernment A

Material
recycling

Operating stations where you canbring resources at any time
Supplementing local governments' collection
services several times a month, we offer
services that are useful to local residents,
including the acceptance of oversized waste
and hard-to-dispose-of waste.

Carbon Neutrality
Recycled raw materials produced
from above ground resources(waste) in carbon-neutral
processes

Chemicalrecycling

Community
resources

Thermalrecycling

Environment-welfare cooperation
and agriculture-welfare
cooperation

Local
government B

Su

ppl

y

Welfare cooperation that links recycling andagriculture to people looking for job
opportunities to resolve local employment
and job issues.

Maintenance/Reuse

en

t

e

nt
hme
bis
fur
Re
Reuse

Us

Reduction of local
governments' GHG
emissions

Recycled raw materials

Production ofgreen materials
ntenance
Mai

Disposal

We will operate the CE facilities that are best suited to the
local community, meeting the CE needs of individual regions
and local governments which vary.

Two types ofenvironmental value

Revaluation of
resourceseers sRevgistic ion)*
lo llect(co

Waste
reduction

Recyclinggr in

Low-carbon
fuels

ec

ing
yc l

About
Green Materials

ctu

R

Carbon NeutralDeterioration of
public services

Local-based CE facilities

re m*Reverse logistics is the comprehensive
process of collection the flow of items
from customers and users to producers.
It includes the collection of resourcesfrom demolition work.

Return ofvalue to local
residents

Local
communities

Revitalize local communities through local events and other initiatives
Return value created through circulation to local sports teams andpublic facilities
Build communities that are comfortable and easy to live in ollect resources and waste from customers in the manufacturing industry, maximize their value as products, andC
return them to the market

 ur resource circulation center in the city of Azumino, Nagano Prefecture, provides a 24-hour collection service,Ocollects resources from citizens, and realizes resource circulation.

Establish a recycling-oriented business model by connecting the value chain of arterial and venous industries

 e achieve community-based resource recycling, such as by employing people with disabilities to conduct manualW
dismantling, and we work with local governments to revitalize the community through the circular economy.

 ecure a stable supply of used products by strengthening partnerships with major companies and establishing aSnationwide circular economy scheme aximize product utilization and minimize leaks in resource value through various methods, including maintenance,Mrefurbishing, reuse, remanufacturing, and recyclingIn the short term, the company will play a complementary role to municipal waste administration, and in themedium to long term, it will contribute to the establishment of a circular economy for urban waste through deep
involvement in local governments’ waste management efforts.

ENVIPRO Group Sustainability Report 2023

1. Growth Strategy

Business Goals
Segments

Targets of Mid-Term Plan 2028

35.0

35.0

30.0

30.0

25.0

25.0

20.0
35.0
15.0
30.0
10.0
25.0
5.0
20.0
0.0
15.0
35.0

Promoting Key Businesses (Years ending June 2024 to 2028)

Resource Circulation
Business ealize examples of the circular economy in the manufacture ofRtires and other polymer products

Global Trading
BusinessStrengthen relationships with domestic electric furnace makers

25.0
5.0
60.0
20.0
0.0
50.0
15.0
40.0
10.0

0.0
30.0
60.0
200
50.0
10.0
40.0
0.0
30.0
60.0

 ithdraw from unprofitable businesses, and establish new200
W
50.0
business locations and commercial distribution channels
10.0
3.0
40.0
0.0
2.5
30.0
2.0
200

Commence operations at Ibaraki plant
Lithium-ion Battery
Recycling Business

Expand plants and take up the challenge ofhydrometallurgy to realize battery-to-battery
recycling

Expand circular economy functions
Environment Management
Consulting Business

Other Businesses

202335.0
15.0
30.0
10.0

25.0
5.0
60.0

18.820.0
0.0

50.0
202315.0
40.0
34.410.0

0.0
30.0
202360.0

10.0
40.0

34.4

0.0
30.0
202360.0

10.0
3.0
40.0

34.4

0.0
2.5
30.0
2023

1.6

2.0
200

1.0
0.0
2.5

2.5

1.6

0.5
2.0

0.0
1.5
2023 3.0

1.52023 3.0

1.0
2.5

1.0
2.5

0.5
2.0
 evelop agriculture–welfare cooperation business and expand1.0
D
0.0
1.5
business bases
0.8

1.6 0.0

1.52023 0.8

1.0
0.6
0.5
1.0
0.4
0.0
0.8
0.2

1.0
0.6
0.5
0.4 1.0
0.4
0.02023 0.8
0.2

0.6
0.0
1.0
0.4

0.6
0.0
0.4 1.0
2023
0.4

0.8
0.2

0.8
0.2

Provide consulting service for circular economy
Develop environmental DX system

0.6
0.0
1.0
0.4

2023
2024

2024
2026

1.0
2.5
0.5
2.0

1.6 0.0

0.5
2.0
1.0

0.6
0.0
2023 1.0
0.4
0.4

2026
2028

2024
2023

2026
2024

25.0

28.5
25.0

18.8
2023
2024

40.0
34.4

2024
2026
45.0
40.0

2023
2024

2024
45.0
2026
40.0

2023
2024

2024
2026

40.0
34.4

40.0
34.4
2024
2023

40.0
34.4
2023
2024

1.6

2023
2024

45.0
40.0
2026
2024

45.0
40.0
2024
2026

2028

1.0
1.6
2023
2024

1.0

0.5
0.4

51.5
2026
45.0
2028

51.5

51.5
2026
45.0
2028

51.5

2026
2028

2028

51.5
45.0

51.5

2028
2026

2028

51.5
45.0

51.5

2.7

2.7
2028

2.7

2024
2026

2026
2028

2028

1.0

1.5

2026
2024

1.0

1.5

2024
2026

1.0
0.6
0.5

1.5

2026
2028

2.7

1.5

2028
2026

0.9

2026
2028

2028

0.6
0.9

0.9
2028

0.5

0.6

2026
2024

2028

0.9
1.5

2026
2028

0.6
0.5

2.7

2.7

0.6
0.5

2024
2026

2028

2.7

2024
2026

0.5
2024
2023
0.4

2028

2026
2028

2023
2024

2023
0.4
2024

2028

1.5

1.5

2024
2023

2028
33.0

2.7

2024
2026

1.6

2028
2026

1.0

1.6
1.0

33.0
28.5

1.5

2023
2024

2026
2028

0.9

0.9

4.0

3.5

3.5

3.0

3.0

2.5

2.5

2.0
4.0
1.5
3.5

2.0
1.56 4.0
1.5
3.5
1.0
3.0
0.5
2.5
0.0
2.0
2023 4.0
1.56
1.5
3.5
1.0
3.0
0.5
2.5
0.0
2.0
2023 4.0
1.56
1.5
3.5
1.0
3.0
0.5
1.5
2.5
0.0
2.0
2023 1.2
1.56
1.5

0.0
2.0
4.0
1.5
3.5
1.0
3.0
0.5
2.5
0.0
2.0
4.0
1.5
3.5
1.0
3.0
0.5
1.5
2.5
0.0
2.0
1.2
1.5

2028

0.9

2028

0.9

3.65

2.07
1.56

2.07
2023
2024
1.56

0.9
1.0

2.07
2024
2023
1.56

2024
2026

2.50
2.07
2026
2024

2.50
2.07
1.20
2024

0.75

0.9
0.0
1.5
0.6

0.9
0.0
2023 1.5
0.6

0.75

1.2
0.3

0.221.2
0.3

0.22

0.9
0.0

0.9
0.0
2023 1.5
0.6

0.75
2024

1.2
0.3
0.6
0.9
0.0
0.5
0.6
0.4

2.50
2.07

3.65

2.50
3.65

2.07
2023
2024
1.56

0.5
1.5
0.6
0.0
2023 1.2
0.220.3

1.5
0.6

2.50
2.07

13

3.65

2.50
2026
2028

3.65

2028

3.65

Segment Profit (Billions of yen)

0.9
1.0
1.5
0.5
0.6
0.0
1.2
0.3

2023
2024

0.22

2023
2024

2023

1.2

0.22
0.57
0.0 0.75
0.50.220.3
0.6
0.570.9

2.50
2028
2026

2028

3.65

3.65

1.50
2.50

1.50

1.20

2026
2028

2028

0.75

1.50

1.50

1.20

1.20
2026
2028

2028

2024
2026

2026
1.50
2028

1.50
2028

1.20

1.20

2026

2024
2026

0.75

0.75

2026
2024

2028
1.50
2026

1.20

1.20

1.50
2028

0.75

2024
2026

0.50

0.50

2023
2024

2026
2028

2028

0.3
0.3
0.6

0.220.3 0.22
0.570.3
0.6 0.57

0.25

0.2
0.0
0.5

0.0
0.2
0.5

0.25
0.50

2024
2026

2026
2028

0.50

2023

2023

0.6
0.4

2023
2024

0.1
0.4

0.1
0.4

0.06

0.06

0.0
0.3
0.6
0.2
0.5
0.1
0.4
0.0
0.3
0.6

0.3 2023
2023 0.6 2024
0.57
0.57

2024
0.25
2026

0.2
0.5

0.2
0.5

0.1
0.30
0.4
0.0
0.25
0.3
0.20
0.2

0.20
0.2

0.15
0.1
0.30
0.10
0.0
0.25
0.05
0.20

0.6
2028
2026

4.0

1.0
3.0
0.5
2.5

33.0
33.0
28.5
28.5 (Billions
Sales
of yen)
25.0
25.0

1.0
1.0
0.0

2023

33.0

28.5

18.8

200
50.0

1.0
2.5
0.5
2.0
0.0
1.5
3.0

Develop and expand environment–welfare

25.0

200
50.0

1.5
10.0
3.0

L ook for Kansai and overseas plant locations and commence
0.0
1.5
operations
3.0

33.0
28.5
25.0

30.0
5.0
60.0
200
0.0
50.0
2023
10.0
40.0
34.4

33.0

18.8

18.820.0
0.0 18.8

1.5
10.0
3.0

0.5
2.0

Commercialize hydrometallurgy

Welfare Service Business for
People with Disabilities

0.0202335.0
15.0

25.0
5.0

10.0
40.0

Reorganize the overseas portfolio andtake on new business challenges

25.0
5.0

18.820.0

5.0
25.0

P romote the collection of gold, silver, and copper sediment sludge
30.0
60.0
5.0
from incineration ash
200
0.0
50.0

Promote new initiatives to reach 1 million tons handled

30.0
10.0

30.0
10.0

35.0
 espond to trends for decarbonization-related dismantling, and 15.0
R
30.0
10.0
research the circular economy for dismantling

25.0

35.0
15.0

10.0
30.0

0.0
20.0

Transition to a business model aimed atrealizing a circular economy

18.820.0

28.5
25.0

33.0
28.5

0.00
0.15
0.30
0.10
0.25
0.05
0.20
0.00
0.15
0.30
0.10

0.0

0.2
0.5

2028

2026
0.25
2028

2028

0.50

0.50

0.1
0.4

0.06

0.06

0.0
2023 0.3
0.570.6

2024
2023
0.57

2024
0.25

2028
2026
0.25
0.50

0.50

0.1
0.30
0.4

0.06

0.06

0.30

0.30

0.0
0.25
0.3
2023

2023
2024

2024
2026
0.25

2026
0.25
2028

2028

0.15
0.06

0.15
0.30

0.30

2024
2026

2026
2028

2028

0.15

0.15
2026
0.30
2028

0.30
2028

0.15
2028
2026
0.30

0.30
2028

0.15
0.1
0.30 0.06
0.09
0.090.10
0.0 0.08
0.25
2023
0.05
0.20

0.00
0.15
20230.30

0.09

2023
2024

2023
2024

0.09
0.10 0.08

0.25

2026

0.08

2024
2026

2028

0.08

0.05
0.20
0.00
0.15
20230.30

2024
2023

0.09
0.090.10 0.08

0.15

2026
2024

0.08

Global Trading
BusinessResource
Circulation
Business

ENVIPRO Group Businesses

Lithium-ion
Battery
Recycling
Business

Other Business

Other Business

Welfare Service
Business for People
with Disabilities

Environment
Management
Consulting
Business2. Business

ENVIPRO Group Sustainability Report 2023

15

Overall View of Our Businesses
Resource Circulation Business

Global Trading BusinessWe work to use limited resources

In this business, we distribute

effectively and reduce waste by promotinginternationally the metal scrap and otherthe reuse, recycling, and remanufacturingresources generated in Japan and otherof waste and resources. We also offer

countries. We provide export agency

new value to the world by using waste toservices for used cars and other items to

manufacture recycled materials.

meet customer needs.

ECONECOL Inc.

Nitto Kako Co., Ltd.

Kuroda Recycle Co., Ltd.

ARBIZ Corporation*

SYN ECO Inc.

Fuji Eco Cycle Co., Ltd.*

Toyo Rubber Chip Co., Ltd.

Breakdowns by Business(Year ended June 2023)

49.1billion

Net sales: ¥3.0%

Cyterrace Co., Ltd.

NEWSCON Inc.

0.8%

34.0%

Breakdown of
net sales

62.2%*Affiliates accounted for under the equity method

1.9billion

Segment profit:¥

Lithium-ion Battery Recycling Business
By recycling lithium-ion and other

Other Business

Welfare Service Business for People with Disabilities
Environment Management Consulting BusinessIn this segment, we are developing the Welfare
Service Business for People with Disabilities.
This business supports the independence ofpeople with disabilities, helping them to findwork and in community life. In addition, ourEnvironment Management Consulting Businesshelps companies develop environmental
strategies and plans for
reducing greenhouse gas emissions.

rechargeable batteries, we help to collectand make use of limited resources, suchas cobalt, nickel, and lithium. We aim toachieve a closed loop, LIB-to-LIB.

VOLTA Inc.

23.4%

4.0%

Breakdown ofsegment profit

Welfare Service Business for People with Disabilities

Environment Management Consulting Business

ASTOCO Inc.

Bright Innovation Co., Ltd.

9.0%

63.6%

2. Business

ENVIPRO Group Sustainability Report 2023

16

Highlights
Unveiling of the Medium-Term Management Plan

Acquisition of Land and Building for a Lithium-Ion Battery (LIB) Recycling Plant in
Ibaraki Prefecture, Aimed at Tripling Our Processing Capacity

In August 2022, we transitioned the consolidated numerical targets of our
medium-term management plan to a rolling basis. To adapt flexibly to rapidlychanging market conditions, we have formulated a five-year medium-term
management plan (Mid-Term Plan 2028), which we introduced in August 2023.

In March 2023, we acquired land and buildings in the city of Hitachinaka, Ibaraki Prefecture, to establish a base for a
new LIB recycling plant. We will be constructing a black mass* manufacturing facility with a processing capacity of
5,000 tons. When combined with the existing facility, which has a processing capacity of 2,500 tons, the total
P24
processing capacity will increase to 7,500 tons, triple the current level.

P10

Aggressive Growth
Investments toIncrease LIB
Recycling Capacity

Establishing Cyterrace, Which Handles the Logistics Agency Business
In September 2022, we established Cyterrace Co., Ltd., as a wholly owned
subsidiary. In January 2023, Cyterrace took over operations of the logistics
P22
agency business from 3WM Co., Ltd.

Engaging in Joint Research with the University of Tokyo’s Shinsuke Murakami Laboratory
to Visualize Efforts toward Decarbonization
The ENVIPRO Group has initiated a collaborative research
project aimed at measuring the GHG emissions generated byeach recycling process and obtaining primary data that can beprovided to trading partners. We have quantitatively evaluatedthe difference in GHG emissions between the recycling
processes carried out at the current RE100 plant*1 andconventional recycling processes that use electricity derived
from fossil fuels.

Quantitative Evaluation of GHG Emissions*2*1 Plant where 100% of the electricity used is derived from renewable energy sources*2 Taken from a notice dated August 26, 2022 on joint research with the University ofTokyo’s Shinsuke Murakami Laboratory

Recycling by
conventional plants* Black mass:
A cobalt/nickel/lithium
concentrate sludge

LIB processing
capacity (t)15,000Total processing capacity of each plant

14,000 tons

= 30% of LIB process waste generated in 2027

+1,500t Overseas plant commences operations

10,000+5,000t

5,000+5,000t Ibaraki plant commences operations

0

Kansai plant commences operations

2,500t Shizuoka plant commences operations
2018

2024

2025

2027

Nitto Kako Co., Ltd. Joins the ENVIPRO GroupRaw material
procurement

In April 2023, the company acquired shares in Nitto Kako Co., Ltd. which
manufactures and sells industrial rubber and resin products, and made it a
P19
consolidated subsidiary.

Manufacturing
Transportation
Use
Recycling
Recycling by
RE100 plant

Developing Add-ons to Facilitate Reporting under Energy Conservation and Global
Warming Prevention Legislation
Bright Innovation Co., Ltd. has developed an add-on application in collaboration with Uhuru Corporation that enables
the management of energy usage data through Salesforce Net Zero Cloud and facilitates compliance with the reporting
requirements of the Act on the Rational Use of Energy and the Act on Promotion of Global Warming Countermeasures.
This application will help reduce the administrative burden of regular reporting.

Launching Resource Collection Stations in the City of Akita in Collaboration with the
Akita Northern Happinets
We established a new Mottainai BOX resource collection station in the city of Akita, Akita Prefecture, inP18collaboration with the Akita Northern Happinets, a B.League professional basketball team.

Publication of an Original Picture Book, Boku no Te wa Maho no Te(“My Hands are Magic Hands”)
In June 2023, SYN ECO Inc. and ASTOCO Inc. published a picture book called Boku no Te wa Maho no Te
P41(“My Hands are Magic Hands”).

2. Business17

Resource Circulation BusinessResource Circulation Business

Sales (left scale)

Sales (leOrdinary profit (right scale)(Billions of yen)(Billions of yen)

30.0

6.0

60.0

5.0

50.0

4.0

40.0

3.0

30.0

2.0

20.0

5.0

1.0

10.0

0.0

0.0

0.0

25.0

Global resource consumption is on the rise, highlighting numerous environmental
issues, including resource scarcity and excessive waste generation.
The ENVIPRO Group aims to promote a circular economy by producing and incorporating

Resource Circulation Businessgreen materials into the supply chain.

20.3

20.0

14.2

15.0

18.8
2.75

2.08

10.0

FY06/211.56

FY06/22

Sales (left scale)

FY06/23

Flow of Collection for Gold, Silver, and Copper Sediment Sludge(Billions of yen)

2.0

Amid growing concerns over carbon neutrality and resource depletion, the concept of a circular economy is gaining
attention worldwide, particularly in Europe. This has led to a renewed recognition of the importance of metal recycling,which has been a longstanding focus of the ENVIPRO Group.
The ENVIPRO Group entered the business of recycling composite materials with the introduction of a large shredder. At
ECONECOL Inc., we crush and process up to 5,000 tons of raw materials per month, including automobiles, copiers,
vending machines, and small household appliances. Through magnetic separation, we collect ferrous scrap, while
non-ferrous metals and plastics undergo repeated physical sorting in subsequent processes to recycle each resource
as green materials.

1.34

New Recycling Plant Begins Operation
ECONECOL Inc. has commenced operations of its state-of-the-art recycling
plant in the city of Fuji, Shizuoka Prefecture. The RE100 plant is designed toconsider both the internal environment, such as working conditions, and theexternal environment, including landscape. Through processes such as wet
and dry density separation, size separation, and sensor-based sorting, theRE100 plant efficiently and accurately sorts non-ferrous metals, precious
metals, and plastics.

Collecting Gold, Silver, and Copper Sediment Sludge*1 from Incinerator Ash
Municipal waste incineration ash contains trace amounts of precious metals. Of these, riddling ash*2, which falls
from the grates of stoker-type incinerators, contains concentrated precious metals. The ENVIPRO Group collects
gold, silver, and copper sediment sludge from this riddling ash and other sources.
*1 Gold, silver, and copper sediment sludge is a mixture of gold, silver, copper, platinum.
*2 Riddling ash is ash that falls through the grate of a stoker furnace when waste is incinerated.

Valuablepurchase

Riddling ash

Concentration
0.5
0.35
Gold, silver, and copper
sediment
0.0 sludge

In December 2022, Kuroda Recycle Co., Ltd. commenced operations of the (0.5)
Group’s third plant for the collection of gold, silver, and copper sedimentsludge. This plant enables the collection and resource utilization of gold,
silver, and copper sediment sludge, which had previously been difficult tocollect and had been disposed of as waste, including from riddling ash andresidual waste from local government's incinerators, as well as fromresidual waste from automobile shredding.

0.57

0.47

1.0

Incineration
facility

0.75

0.6
0.5
0.4

0.

0.3

Sale

0.25

Non-ferrous metal
refining company 0.00

0.2

(0.25)

0.0(0.08)
FY06/21F(Billions of yen)

0.50

FY06/22

FY06/23

Cleaning and Dismantling Work at Buildings and Plant Facilities Across JapanThe ENVIPRO Group provides a one-stop service for dismantlingwork and ancillary services, including the cleanup of debris frombuildings and grounds, preliminary investigation of asbestoscontaining building materials, CFC collection, and building
dismantling work. In fiscal 2022, we increased the number ofprojects and expanded the area in which we engage in thedismantling business through collaboration with financial
institutions.
Circulating collected resources through the circular economy
helps reduce costs and environmental impact.

1.00

1.63

1.5

31

Sales (leOrdinary profit (right scale)(Billions of yen)

Recycling of Metals and Waste(Billions of yen)

0.1

F

2. Business

ENVIPRO Group Sustainability Report 2023

Resource Circulation Business18

Resource Circulation Business
Expanding Our Recycling of Wind Power Generation Facilities

ENVIPRO HOLDINGS Inc. and NEWSCON Inc. have collaborated with the Akita Northern
Happinets, a professional B.League basketball team, to set up a Mottainai BOX tocollect resources in the city of Akita. The station aims to collect cardboard, magazines,

Japan’s northern island of Hokkaido already has a large numberof wind power generation facilities, and the construction of
offshore wind power generation facilities is also underway. The
removal of facilities that have been in operation for over 20 years
due to aging is increasing year by year. Kuroda Recycle Co., Ltd.
possesses advanced processing facilities and is actively engaged
in the recycling of wind power generation equipment. In
particular, we actively recycle turbine blades from across thecountry, including from outside Hokkaido. We recycle the metals
and special alloys used in this equipment, as well as waste
plastics and hard-to-process materials.

newspapers, and metal for recycling, with a portion of the proceeds from recycling
being returned to support the activities of the Akita Northern Happinets.

Production of Low-Carbon Raw Fuel from Waste Plastic (RPF)
RPF* is a solid fuel produced by compressing difficult-to-recycle waste plastics
and paper waste. This environmentally conscious fuel offers substantially lower
CO 2 emissions than fuels such as coal, while providing stable quality.

A Platform for Collecting Community Resources
Mottainai BOX and Community-Based Initiatives
Items Collected in the Mottainai BOX

SYN ECO Inc., headquartered in Matsumoto, Nagano Prefecture, isactively engaged in local community initiatives through its Mottainai
BOX and other regionally integrated efforts. Across the Chushin
Old clothes Waste paper Aluminum cans
district of Nagano Prefecture, the company has set up 23 Mottainai
BOX Stations, which serve as collection points forcommunity resources. SYN ECO also operates aresource recycling facility in the city of Azumino, called
SYN ECO Plaza Azumino. The convenience of thesestations and the plaza has led to an annual increase in
the volume of resources collected, and a portion of theearnings from the collected resources are returned to
the local community. We aim to become a trusted entity
in the region by providing attentive support and prompt
responses to the concerns and needs of local residents.
Moving forward, we will actively engage in regional
collaboration and contribute to the circular economy
that supports the local community.
Mottainai BOX

ECONECOL Inc. produces approximately 23,400 tons of RPF annually andRPF
continuously supplies it primarily to paper companies as boiler fuel. The factoryis currently in production 24 hours. ECONECOL is looking to expand the customer base and establish a system toincrease production further.
* RPF, which stands for “Refuse derived paper and plastics densified Fuel,” is a high-grade solid fuel made mainly from collected paper and plastics(mainly from industrial waste) that are difficult to recycle as materials.

Metal

Expanding Reused Items, Such as PC Components
Instead of disposing of used electronic equipment as waste, we strive to makeeffective use of its resources through reuse and recycling, thereby reducing
waste.
In fiscal 2022, we began extending our efforts beyond the recycling of personal
computers to include the dismantling and extraction of CPUs and memory forcomponent reuse. Moving forward, we will focus on refurbishing collected
laptops and undertake various initiatives to maximize the resource value ofelectronic devices. We are committed to promoting a CE supporting
manufacturing, and we plan to further expand our initiatives to other products, in addition to PCs.
*Refurbishing is the process of collecting defective products and bringing them back to life. We refurbish a wide range of PCs, from those that are no longer
usable to those that are nearly new, thereby helping to reduce waste.

2. Business

ENVIPRO Group Sustainability Report 2023

19

Resource Circulation BusinessResource Circulation Business Manufacturing Polymer ProductsWorking with Toyoda Gosei Co., Ltd.,
to Realize a Circular Economy Model for Rubber
Due to its nature, rubber is known to be difficult to recycle, and the mainstream methods of disposal include
thermal recovery and landfill. To promote the circular economy of rubber products, Toyo Rubber Chip Co., Ltd. iscollaborating with other members in its supply chain to work towards the realization of a circular economy forrubber products. The company’s headquarters factory operates on 100% renewable energy. In line with the visionof becoming carbon-neutral by 2050, Toyo Rubber Chip Co., Ltd. manufactures low-carbon products using lowcarbon processes.

2

3

Expand circular economy products andsales channels

Grow the tire business, which
represents the largest rubber market

realizing a circular economy model that achieves tire-to-tire recycling.

Leveraging the Polymer Circular Laboratory to Achieve a Circular Economy
in the Manufacture of Polymer Products
By utilizing its expertise in the regeneration of rubber and resin products, the Polymer Circular Laboratory provides
a one-stop service for a series of processes involving the development of recycled products that in the past wereconducted separately.
We are accelerating the flow to molded prototypes while reducing time and effort by centralizing the contact point
for coordination with vendors for each process, technology selection, pre-processing, and prototype production.
We can quickly share our vision for recycled products within the company, which allows us to accelerate theproduct development cycle. Furthermore, having a concrete vision also helps promote sustainability within theorganization.

In fiscal 2022, Toyo Rubber Chip started manufacturing cushion mats using recycled
rubber scraps Toyoda Gosei Co., Ltd. generated in the process of producing automotive
components.

➡
Rubber scrap

1
Increase in-house production of therubber product supply chain

Cushion matsCircular Economy for Polymer Product Manufacturing

Toyo Rubber Chip Co., Ltd., and Nitto Kako Co., Ltd.,
Cooperate in the Rubber Product Supply Chain
In April 2023, Nitto Kako Co., Ltd. becamea part of the ENVIPRO Group. A pioneer inrecycled rubber, Nitto Kako will collaborate
with Toyo Rubber Chip Co., Ltd. to enhancepolymer product manufacturing. Recycled
rubber is not widely used in tire
manufacturing at present, as braking
performance and other requirements
demand high-quality rubber.
However, we are leveraging Groupsynergies and taking on the challenge of

Input of renewable resources

Synergies between Toyo Rubber Chip and Nitto Kako
Procurement of
raw materials

Rubber-related
manufacturers, etc.

Recycled
raw materials
for productsE fficient collection forrecycling

Production

recycled products and services

Reduction of production loss by

In-plant
reuseCollection

Recycling
Reinjection of recycledresources

Processwaste

Design of circular economy model/

DesignConversion to horizontal recycling
Ensuring traceability

optimization of manufacturing
processes

Reconditioning
Remanufacturing, etc.

Reuse

Waste tires

Retail/distribution
ResaleSelection of environmentallyfriendly products

Tire compounds

Pulverization

Rubber compounds

Desulfurization

Sorting

Use
Reuse
Maintenance

Renewable energyReduction of sales loss

2. Business

ENVIPRO Group Sustainability Report 2023

20

Resource Circulation Business

Flow of Treatment/Processing in the Resource Circulation Business
INPUTSOUTPUTSRECYCLING

Above-ground resources(waste)Recreating resource
value

Paper waste, sponges, light dust, and lightweight plastics

Materials are finely shredded forrecycling.

ShreddingFerrous scrap is removed from the shredded
mixture using strong magnetic force.

Materials for
cement production

Incineration

Magnetic separation
Waste is sorted by using
vibration and upward airflow.

Ferrous scrap

RPF

Shredded steel scrap

Dry specific gravity
separation
Agitation
propellers

Automobiles
Photocopiers
Microwave ovens
Vacuum cleaners
Smartphones, etc.

Automobiles

Air power

Air separation

FerrousmetalsPaper waste,sponges, and light
dust are removed
from the shredded
mixture using air
separators.

Nonferrous metals

Electronic circuit boards

Separation

Small home appliances

Light particles

Heavy particles

Refuse paper andplasticfuel (RPF) plantLight particles

RPF and other solid fuel are
produced from waste.

CopperLiquidAluminum

Heavy particles

Wet specific gravity separation
Eddy current separation

The specific gravity of a liquid that combines water and a specific metal powder isadjusted according to the items to be extracted, separating items into those thatfloat and those that settle.

Falling non-magnetic metals
are sorted using magnetic
repulsion.

Gold, silver, and copper
sediment sludge

FerrousmetalsRiddling ash

REUSE

REMANUFACTURING

GLOBAL TRADINGREMANUFACTURING

Plastics for fuelExport overseas
Airplanes Used cars
ExtruderPlastics

RPF (solid fuel)Materials manufacturers

Plastic pellets
Aluminum

Tires

Copper

Gold, silver, and copper
sediment sludge

Plastics for fuelExtruded materials

Rubber chips

2. Business

21

Global Trading

Global Trading Business

Sales (left scale)

Sales (left scale)

Ordinary profit (right scale)(Billions of yen)(Billions of yen)

6.0

60.0

25.0

5.0

50.0

The push for carbon neutrality has been gaining momentum,
20.3 both in Japan and
18.8
20.0
4.0
overseas.
14.2

15.0

2.75

30.0

2.0

20.0

Global Trading Business

5.0

1.0

10.0

0.0

0.0

0.0

1.56

10.0

the countries that need them. Going forward, we will increase our handling volume offerrous and non-ferrous metals and explore new products, thereby expanding thecircular economy worldwide.

FY06/21

Sales (left scale)

FY06/22

FY06/23

Domestic and Overseas Sales of Ferrous Scrap, Which Is Used in Steelmaking
Ferrous scrap is an important recycled resource in Japan,(Billions of yen)

2.0

1.00

2.0

42.9
31.0

34.4

1.14

1.6
1.2

0.71

0.8

0.22
FY06/21

FY06/22

FY06/23(Billions of yen)

0.6

0.24

0.47

0.35

0.50

0.12

International0.5Flow of Waste Paper, Used Clothes,
Rubber, and Other Recycled Goods
0.09
0.25
0.35

electric furnaces that melt ferrous scrap. This approach is

0.0

Ordinary profit (right scale)(Billions of yen)

0.3

toward decarbonization is leading to plans to expand

0.4

these activities, we aim to expand our overseas
network and promote the global circulation of recycled resources,
1.63
0.5
0.20
0.46
1.5
0.75
actively contributing
to global efforts
0.44
1.34towards a low-carbon society.
0.57
0.4
0.16
1.0

which is poor in natural resources. The global trend

2.4

Sales (left scale)

Ordinary profit (right scale)(Billions of yen)(Billions of yen)

40.0

3.0

The ENVIPRO Group aims to deliver recycled resourcesin the most optimal manner to
2.08

Ordinary profit (right scale)(Billions of yen)

30.0

0.2

0.0

0.00

0.08

0.12
0.08

0.1

0.04
The company exports waste paper (as a raw material for papermaking) and used clothes (reused commercial(0.08)

said to generate less CO2 than blast furnaces that use

materials). We (0.5)
have dedicatedwarehouses
for waste
paper (0.25)
in the city0.0
of Niigata
and in Imari,Saga Prefecture.
FY06/21
FY06/22
FY06/23
FY06/21
FY06/22
FY06/23

iron ore and coke. Demand for ferrous scrap is thus slated

0.00

Since fiscal 2022, in addition to waste plastics, we have also begun handling recycled rubber raw materials,

to increase. NEWSCON Inc. conducts quality control inimporting and selling rubber tubes and selling non-vulcanized rubber in Japan and overseas.

accordance with customer needs and sells ferrous scrap
to (blast furnace and electric furnace) steelmakers inJapan and overseas. In response to the growing demand
for steel in Vietnam and other countries in Southeast and Ferrous scrap
Southwest Asia, we have established new and expanded
collection bases in Japan to increase the amount of steel we can collect. The company has earned plaudits for its
quality control and delivery system, which have helped it to sustain long-term contracts. In addition, astransportation logistics grow more diverse, we have been making active use of bulk shipping (small and large
vessels) and container transportation to sell ferrous scrap on a global scale.

Waste paper

Used clothes

Rubber tubes

PET flakes

Processing and Supply of Nonferrous Metal Scrap
Promotion of New Business and the Discovery of New Commercial Products
NEWSCON processes and supplies a variety of nonferrous scrap that has been
shredded and sorted by the ENVIPRO Group and domestic waste disposal

We are actively engaged in discovering new products with a focus on the keyword “recycling” and developing newcompanies to meet the needs of domestic and international customers. In Augustbusinesses with partners nationwide. In addition to having expertise in handling palm kernel shells (PKS) and wood2023, we commenced operations at a branch in the Netherlands, using it as abase for export-import and trilateral trade between Europe and Asia. ThroughAluminum shredder scrap

pellets, which fuel biomass power plants, we handle difficult-to-process scrap and other materials.

2. Business

ENVIPRO Group Sustainability Report 2023

22

Global Trading

Interviews at Overseas Bases

The New Cyterrace Commences Operation

NEWSCON Inc., which creates new business opportunities on the global
stage, commenced operations at a new branch in the Netherlands inAugust 2023.
Below are messages from the representatives of our three overseas
locations, including existing offices in Vietnam and the United Kingdom.

September 2022 marked the establishment of Cyterrace Co., Ltd. The newcompany took over the logistics agency business from 3WM Co., Ltd., which
spearheads the reuse of used automobiles and parts. Below is a message from
Kenro Suzuki, the new company’s president.

Interview 01

Branch in the Netherlands

Branch in the Netherlands

NEWSCON Inc. is expanding its recycling activities worldwide. Recently, we have been collaborating withrecyclers in Europe, and we continue to maintain those partnerships. August 2023 marked theestablishment of NEWSCON Netherlands in Rotterdam, bringing us closer to our recycling partners in
Europe. Leveraging our over 73 years of expertise in recycling and strong customer relationships
throughout Asia, we aim to be a reliable partner for sustainable raw materials in Europe.
We are prepared to address the increasing demand for the recycling of e-waste, batteries, and metals,
driven by the digital transformation and the widespread adoption of electric vehicles.
Our mission is to expand the circularity of reusable materials in Europe through collaborative partnerships,
supported by specialized knowledge in recycling and innovative solutions. We invite you to join us on thisjourney towards a carbon-neutral society.

George Harris
Deputy General Manager,
Recycling Raw Materials
DivisonGeneral Manager,Global
Business Development Division
General Manager,NEWSCON
Netherlands

Interview 02 Vietnam Representative Office
I feel that the recycling expertise and technologies developed in Japan are now needed in Vietnam, as thecountry has been rapidly establishing environmental laws and systems, including the implementation of a
new environmental law starting in 2022. Companies are beginning to work earnestly toward achieving
these goals.
Amid a changing environment, we are no longer seeing Vietnam merely as the endpoint for Japan’s
resource circulation but also as a starting point to establish environmental businesses. Going forward, we
aim to become more deeply involved in Vietnam by actively collaborating with local companies.

Interview 03

Shinji Imabayashi
Branch Manager, Vietnam
Representative Office

UK Representative Office

The UK Representative Office supports the collection and sales of mixed metals, including non-ferrous andprecious metals, as well as electronic substrates handled by NEWSCON. In addition to the trading

We were spun off from ENVIPRO Group company 3WM in September
2022 and established as a specialized logistics company. We began
operations in January 2023. We handle a wide range of import andexport cargoes across various industries, with a particular focus on
logistics arrangements for the export of reusable products such as
used cars and used parts. We deliver cargoes to destinations
worldwide, including Dubai in the Middle East and various countries inAfrica.
In this regard, our company embraces the “one-stop logistics service” approach. We offer comprehensive services
spanning customs clearance and export procedures to container booking, land transportation arrangements, vehicle
management at the receiving yard, and container bundling. For the export of vehicles and parts, we leverage our
extensive experience to arrange the best transportation methods and deliver items to the desired port quickly andcost-effectively. With our unique network service that covers every corner of Japan and the world, we prioritize thedesires and sensibilities of our customers, ensuring reliable delivery to our customers across the seas.
We have earned plaudits from numerous customers for the dedicated plans we offer in such reuse industry
categories as used cars and parts, and for the provision of services tailored to their specific needs andcircumstances.
In addition, we have obtained a customs clearance license from Yokohama Customs starting from July 2023 andhave begun in-house customs clearance operations. This allows us to not only broaden our range of services but
also to directly reflect customer feedback in our business, enabling us to further improve our services.
Looking ahead, we plan to establish a branch in Dubai, United Arab Emirates, in 2024. Dubai serves as a hub port
connecting Asia, Africa, and Europe, and our goal is to handle not only import procedures for cargo from Japan andre-export procedures to third countries but also to handle the arrangement of cargos
from around the world.

business, the office also collects, analyzes, and disseminates various information related to European
environmental policies, recycling technologies, recycling business models, and decarbonization. The office
is working to collaborate with recycling companies and environment-related businesses in Europe andimplementing medium- to long-term business strategies.

Shinobu Tachibana
Branch Manager, UK
Representative OfficeKenro Suzuki
President, Cyterrace Co., Ltd.

5.0

2. Business

0.0

FY06/21

L i t h i u m - i o n B a t t e r y R e c yc l i ng

Lithium-ion Battery Recycling Business
Lithium-ion Battery Recycling Businessneutrality, demand for lithium-ion batteries (LIBs) is expanding rapidly. However,

1.0Black mass

1.34

0.57

0.47

0.5

0.35

0.0
(0.5)

(0.08)
FY06/21

Heat treatment

Shredding/sorting*2

Electrolyte is volatilized
through heat treatment.

Sorting with sieves after
shredding

FY06/22

FY06/23

LIB materials recycling
supply chain

Black mass:
Hydrometallurgy
manufacturers
Iron:
Steel manufacturers
Copper:Copper smelters andmanufacturers(PCs, tools, electric bicycles, etc.)

Electrode plate(mobile phones, etc.)

Sorting with sieves after
shreddingAnode sheet/cathode
sheet

Active materials:
Hydrometallurgy
manufacturers

Active materials*1 applied tocopper foil or aluminum foil
are efficiently stripped off by
a special shredder

Carbon:Steel manufacturers

For ESS(household and industrial storage
batteries, etc.)*1 Black mass/active materials: A concentrated sludge of cobalt, nickel, and lithium*2 By evaporating electrolytic solution through heating treatment, shredding and sorting are handled in a continuous line

0.4

0.25

Plant Recycling Process

Shredding/sorting

0.6
0.5

0.35

0.3

Cylinder type

Square and laminated type

0.75

(Billions of yen)

0.50

Production Using a Decarbonization Process at RE100 Plants
To achieve carbon neutrality by 2050, decarbonization processes will be required inbattery recycling, as well. With the exception of the trucks we use for haulage, VOLTA istransitioning to 100% renewable energy in all its processes. We will help to build a lowcarbon society by working toward RE100 at new sites we will establish in the future.

FY

Sales (left1.00

Batteries(EVs, HEVs, PHEVs, etc.)

0.0

23

1.63

Recycling processVehicle use

0.0(Billions of yen)

LIB Recycling Process
Batteries to Be Processed

10.0

Ordinary profit (right scale)

2.0
1.5

concerns exist about the shortage of rare metals, which are used in LIB production. The
ENVIPRO Group is contributing to progress of electrification by recycling rechargeable
batteries, including LIBs.
We aim to achieve a closed-loop system of LIB-to-LIB and envision a circular economy
for batteries.

FY06/23(Billions of yen)

As various economic activities are being electrified with a view toward achieving carbon

Recycling LIBs to Produce Black Mass and Collect Valuables
LIB cathode materials contain minor metals, such as cobalt, nickel, and lithium. After LIBs
are heated, they are crushed and sorted to collect black mass*1, a mixture of minor
metals. The company also collects copper contained in the anode material. VOLTA Inc.
leverages its accumulated expertise to sell high-quality collected metals to various refining
manufacturers. In 2023, we have expanded our LIB
recycling line and significantly increased our production
capacity. We also conduct production equipment
adjustments for each type LIB to ensure optimal
recycling.

Sales (left scale)

FY06/221.0

Copper:Copper smelters andmanufacturers
Aluminum:
Reducing agent applications

0.2

0.00

0.1

(0.25)0.0

FY

ENVIPRO Group Sustainability Report 2023

2. Business24

L i t h i u m - i o n B a t t e r y R e c yc l i ng

Lithium-ion Battery Recycling Business
Low-Environmental-Impact LIB Recycling

Expanding Our Base of Operations and Taking up Challenges in the Hydrometallurgy BusinessIn the heating process during LIB recycling, toxic gases
are generated, mainly consisting of fluorinecompounds. VOLTA Inc. has installed environmental
facilities to remove these harmful substances andreduce environmental impact.

In 2023, we acquired an LIB recycling plant in the city of Hitachinaka, Ibaraki Prefecture, with a processing capacityof 5,000 tons. We are preparing for the plant to commence operation in 2024. In addition to collecting processwaste from LIB production factories, at the Ibaraki plant we also expect to collect used LIBs from the densely
populated Kanto area.
As no commercial-scale black mass refining facility is currently operational in Japan, significant resources are
flowing overseas. The ENVIPRO Group is taking the lead to establish a hydrometallurgy business to promote a
circular economy for LIBs in Japan, and we continue with research aimed at achieving closed-loop recycling.

Environmental facilities at the
Fujinomiya plant

Building a Closed Loop
Recycling of Used Rechargeable Batteries Through Contracted Industrial Waste Disposal

Collection

Pretreatment
BM

The rate of use is increasing for lithium iron phosphate batteries, which are used in industrial and portable power
applications. As these batteries do not contain nickel or cobalt, they are typically circulated as waste materials.
VOLTA will respond to this trend by utilizing permits for intermediate disposal of industrial waste and establishing asystem for accepting materials from valuable items to industrial waste. This will allow us to provide customers witha one-stop service for LIB recycling, ensuring competitiveness and diversifying revenue sources.

The ENVIPRO Group is working to establish an information management system that complies with the battery
passport mechanism mandated by European battery regulations, which will be enforced in the EU in 2026. Our goal
is to eventually incorporate the operational results of the information management system for LIB closed-loop
recycling in the downstream area of resource circulation, which has been demonstrated by VOLTA, into a nationally
led information management system.

Production

Precursor

Cathodematerials

Co

Obtaining Certification under the R2 Standard for Sustainable Recycling

Promotion of DX in Closed-Loop LIB Recycling

Ni
Nickel sulfate

BM plant

VOLTA has obtained certification under the R2 Standard for responsible reuse and recycling of battery equipment, awidely adopted standard in the United States. The standard attests to VOLTA’s use of a recycling management
system for appropriate recycling.

Metal collection and Refining

Hydrometallurgical plant

Cobalt sulfate

Li

LIBs

Finishedproducts forautomobiles, etc.

Lithium carbonate

LIB manufacturing plant process waste, used LIBs

Strategic opening of blackmass production sites toachieve closed-loophydrometallurgy

Conducting numerous lectures to raise awareness of LIB recycling2. Business
Welfare Service for People with Disabilities

25

Welfare Service Business for People with Disabilities
As Japan’s population ages, issues such as regional employment and a decline in the workingage population are emerging as significant social challenges. The ENVIPRO Group supports theindependence of people with disabilities in terms of employment and community living. We
promote welfare collaboration that connects recycling, agriculture, and people seeking
employment opportunities, aiming to achieve a balance between resolving regional
employment and labor issues.

Welfare Service Business for
People with Disabilities

Ecommit (Type B Continuous Employment Support Program)Environment–Welfare Cooperation

ASTOCO Locations

In cooperation with the ENVIPRO Group, local businesses, and farms,
this program provides work and wages according to the work
performed. In this way, we create a place where people who havedifficulty working in general companies can participate in society
with confidence and gain a sense of fulfillment as members ofsociety.

A model to address environmental issues by collecting resources from dismantled PCs
EcommitBrightEcommit Akashina
Ecommit Toyoshina
BrightMatsumoto

Bright Matsumoto
Ekimae Center
Bright Saitama

Bright (Pre-Employment Transition Support Program)

Ecommit Fujinomiya

People Employed to Date

We provide people with disabilities who are seeking employment
with a curriculum that helps them find employment and assist themin their jobhunting activities. We also support workers retention,
enabling people to remain in work for a long period once they findemployment.

Ecommit(People)15,00012,512
11,622
9,955
9,577
10,000Bright13,789

7,008

Satellite Work0

FY06/21

FY06/22

FY06/23

Fiscal 2022 Results
Average wages (type B continuous employment support program)
Location

Ecommit Akashina
Ecommit Toyoshina
Ecommit Fujinomiya

Average wage

¥34,000¥19,000¥16,000*Wage amounts of ¥100 or less have been truncated.

Number of workers (pre-employment transition support program)
Location

Agriculture–Welfare Cooperation
A model for addressing various agricultural issues by encouraging social participation through engagement in agriculture

5,000

Through this business, we counsel companies and support theefforts of companies seeking to employ people with disabilities.

Ecommit Toyoshina and Ecommit Fujinomiya, which are operated by ASTOCO Inc., conduct recycling operations incooperation with Group companies.
At these locations, we use tools to separate and sort office automation equipment. Their circuit boards contain rare
metals, and by sorting them appropriately, we allow these materials to be reused in the production of future
products. Additionally, we strip the coating off copper wires and manually collect rare metals and other valuable
materials from items that have been crushed, playing an effective role in
the recycling process. In addition, we conduct cleaning patrols to ensurethat the Mottainai BOXes provided by SYN ECO Inc. for use by the local
community are pleasant and clean.
These tasks provide fulfilling work for individuals with disabilities who use
our facilities, and also fill a meaningful role in contributing to theenvironment.

Number of workers

Bright Matsumoto

10

Bright Saitama

7

ASTOCO Inc. helps individuals with disabilities to find confidence and fulfillment in work in the agriculture sector,
including vegetable cultivation in local farms and by tending their own
fields. These initiatives also help to address the serious shortage of
agricultural workers. Through Ecommit Akashina, they cultivate crops suchas cucumbers, spinach, and potatoes, promoting local production andconsumption by supplying them to local retail stores. They also engage
actively in community interaction by selling their products at municipal
offices, branch offices, and children’s centers.

2. Business

26

Enviroment Management Consulting

Environment Management Consulting Business
Promoting carbon neutrality and the circular economy has become increasingly important forcorporate management. The ENVIPRO Group provides consulting services to support carbon
neutrality strategies and the development of circular economy models. Additionally, we offer
solutions involving the introduction of renewable energy and the production of green materials
through recycling and regeneration processes.

Environment Management
Consulting BusinessTotal Support for Corporate Decarbonization

Supporting a Transition to the Circular Economy

As the movement toward decarbonization accelerates both in Japan and overseas, it is becoming increasingly
important for companies to consider the impact of climate change on their business operations and to respond to
the risks and opportunities as part of their management strategies. Bright Innovation Co., Ltd. provides consulting
services to help companies manage their decarbonization management. These services include help withinformation disclosure in response to the TCFD recommendations, assistance in improving evaluations from thirdparty institutions such as CDP, as well as solution services such as supporting the introduction of renewableenergy. Bright Innovation also plays a role in advancing the ENVIPRO Group’s environmental management efforts byproviding support for achieving RE100 and facilitating the disclosure of sustainability information.

Social demands for the transition to a circular economy are growing, including efforts in Europe to step up producer
responsibility and moves to formulate economic strategies for domestic resource autonomy. We offer services suchas wide-area collection and circular economy schemes for used products, as well as supporting the collection ofplastic collection for the chemical recycling business. Additionally, through collaboration between the ENVIPROGroup’s Resource Circulation Business and partners, we offer optimal solution proposals for circulating products
and resources.

Steps for
Implementing Consulting

Obtain thedesired results(Examples) •Carbon neutral strategy•Roadmap for GHG reduction•Information disclosure based on the TCFD
recommendations, etc.

Internal review by client, consensus building

STEP(implementation phase)3

Environmental DX (Digital Transformation)
Society’s demands for data management and collaboration across the supply chain in the environmental sector
have increased rapidly in recent years. By integrating digital tools, Bright Innovation is enhancing its consulting
services to support
Recycled
companies’ decarbonization
raw materials
Collection
locationTransporter
Processor
efforts. Additionally, we have
Remainder
When?
When?
When?
developed and are managing
What?
What?
What?
Who?
Who?
Who?
a traceability system to track
How much?
How much?
How much?
What did you do with it?
What did you do with it?
What did you do with it?
the flow of resources in the
Person in Data
Person in Data
Person in Datacharge registration
charge registration
charge registration
circular economy (see theTrace route
Traceability systemcenter of the figure on the
Dashboard
Dashboardright). Our efforts aim to
Issuance ofcontrol slip
visualize the ENVIPRO Group’s
About own products
Across the factoryForm

Formulate vision for the future, directions

STEP

for improvement, and action planUnderstand the client’s current situation and needs,

clarify issues
Provide the latest trends related to climate change
and sustainability

STEP

2

1

Support for writing and data creation throughdialogue and collaboration

Practical consulting services that leverage our expertise, unique knowledge, experience, and extensive network

contributions to corporate
circular economy models.

Manufacturer’s
representative

Form

Quantity results
CO2 emissions
Recycling results
Individual trace charts
Sankey diagrams

Form

Processor
representative

Quantity results
CO2 emissions
Recycling results
Individual trace charts
Sankey diagrams

ENVIPRO Group ESG Initiatives

E
S
G

Environmental Policy
We have established the following environmental policy and will act accordingly, placing importance on harmony
with the natural environment and coexistence with the local community, with the mission of “Contribute tocreate a sustainable society,” and under the concept of “Lead a circular economy.”nvironment

Target for Ratio of Renewable Energy in Electricity Use

CO2 Reduction Targets
Base Year Target year: 2027

Scope1

2017

Scope2

2017

Scope32022

envipro.jp/en/company/compliance/

Target year: 2050

100

63%

%
Net zero

12.5%—

100% by 2030

Human Rights Policy
The ENVIPRO Group places importance on respecting and promoting human rights, and complies with andpromotes the human rights policy set forth herein in accordance with international human rights frameworks
such as the “United Nations Guiding Principles on Business and Human Rights.”

ocial

envipro.jp/en/company/compliance/

Active Employment of Women
Targeting a ratio of20%of women in management positions by June 2028

Percentage of Female Directors

9.1%

overnance(September 30, 2023)

Outside Directors
We have established and disclosed criteria for the appointment of outside directors. Based on thesecriteria, we appoint individuals who meet the requirements for the determining the independence ofindependent outside directors.

3. ESGENVIPRO Group Sustainability Report 2023

Environment

28

E n v ir on m en t

Initiatives to Achieve the SDGs

The ENVIPRO Group’s Approach to the SDGs

The ENVIPRO Group has identified SDGs that are consistent with the nature of our business and our mission statement of “Contribute to create asustainable society,” around which we engage in activities to achieve the SDGs.

Contribution to the Economy

Making Every Effort with Every Partner

ECONOMYAs actions aimed at achieving the SDGs, we will advance collaboration within the Group, withcompanies in the supply chain, and with administrative agencies, local communities, and citizens.
Partnerships

Through participation in corporate groups and international initiatives, we are
expanding partnerships aimed at achieving a sustainable society.

Japan Climate Leaders’ Partnership (JCLP)
Clean Ocean Material Alliance (CLOMA)

RE100*1

CDP*2 Scoring Partner

Japan Climate Initiative (JCI)At the laboratories of ENVIPRO HOLDINGS Inc., we are

impact and contributes to the economic developmentof countries in need by distributing high-quality usedworking on the development of technology to collect theminor metals cobalt, nickel, and lithium with high purity

cars and other products to where they are needed infrom waste lithium-ion batteries through hydrometallurgy,

the world.

and the enhancement of analysis accuracy, to contributeto the development of technology that will form the basisof a circular economy and a decarbonized society.

*2 CDP: An international initiative for the disclosure of information on climate change response

SOCIETY

We prevent water and soil pollution and contaminationby properly managing scrap materials at our plants,
which comply with safety and environmental
standards. In addition, to prevent infectious diseases,
the entire Group has established guidelines such asa vaccination assistance system and the provision ofthermometers and sterile alcohol solution.
ASTOCO Inc. provides high-quality educational
opportunities for people with disabilities so that they
can participate in society with confidence and a senseof purpose.
We have introduced systems for telecommuting andshortened working hours for permanent employees,
and provide an environment that lets employees,
including those raising children or performing familycare, choose a working style that fits them best.

Working environment

Health Education Gender
Equality Community development

The ENVIPRO Group offers worthy job opportunities
for people of different backgrounds, such as recruiting
new graduates and providing employment to people
with physically challenges. We thoroughly implement
measures to prevent work accidents at our plants toensure the safety of our employees.
Under programs such as the pre-employment transition
support program and the type B continuous employment
support program, we provide support that enables people
with disabilities to remain engaged in rewarding work.
We contribute to community revitalization and thedevelopment of a sustainable cities and communities
through recycling and the creation of employment,by collecting and recycling waste and discarded
household items and by hiring local people withdisabilities at our plants.

Technological innovation

The ENVIPRO Group helps to reduce environmental*1 RE100: Means “100% Renewable Electricity.” An international initiative for companies that aim to procure 100% of the electricity required fortheir business operations from renewable energy sources.

Contribution to Society

No poverty

Contribution to the Environment
BIOSPHERE

We joined the RE100 initiative in July 2018 and set a
goal of shifting to 100% renewable energy by 2030
for the energy consumed in our business activities.
In addition to switching to renewable energy for theelectricity used in our plants, we are installing solar
panels on plant roofs and otherwise introducing
renewable energy power generation equipment.
The ENVIPRO Group is committed to promoting
a circular economy, aiming to maximize productutilization throughout the value chain and minimize
resource value leakage. Through maintenance, reuse,refurbishment, recycling, and remanufacturing, we
contribute to the circulation of limited resources andthe reduction of waste.

Consumption and production

Climate change

EnergyLife below water

Under the goal we have set of achieving carbon neutrality
by 2050, we will work to reduce GHG emissions from ourbusiness activities. We also contribute to the reductionof emissions across the supply chain through ourcircular economy initiatives. In May 2019, we publicly
endorsed the Recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD). We will
identify and evaluate opportunities and risks placedon our businesses by climate change, integrate these
into our business strategies, and engage in appropriate
information disclosure.
We contribute to the prevention of marine pollution
stemming from plastics by developing technologies
to sort waste plastics for recycling into pellets andby promoting the development of applications forrecycled materials.

3. ESGENVIPRO Group Sustainability Report 2023

Environment

29

E n v ir on m en t

Becoming Carbon Neutral by 2050

Information Disclosure in Line with TCFD Recommendations

director, full-time directors, executive officers, and heads of some related departments. The committee seeks topromote the medium-term management plan that forms our strategy for achieving sustainable development for
both the Group and society. As an organization that assists decision-making by the representative director, it
flexibly and actively discusses and examines the status of strategy promotion and future directions, including
new business and M&A, from a long-term perspective. Matters discussed are further resolved or discussed by
the Management Committee, a decision-making body for business execution, and are then submitted to theBoard of Directors. Under the supervision system of the Board of Directors, we work to maintain governance andpromote sustainability.

Basic Approach

In May 2019, the ENVIPRO Group announced its endorsement of the recommendations of the Task Force on
Climate-related Financial Disclosure (TCFD), established by the Financial Stability Board (FSB). The TCFD
recommends disclosure based on four categories: governance, risk management, strategy, and metrics andtargets. The Group discloses information on climate-related issues according to these four categories.
In December 2020, the Group decided to achieve effectively zero GHG emissions from all its business by 2050,
including the processing and recycling of scrap and waste handled by theGroup. As countries work toward decarbonization, resources and climate
Sustainabilitychange are issues that—far from being separate—are closely interrelated
Promotion System
and global in scope. Unrestricted resource extraction and GHG emissions
Board of Directors
undermine sustainability and must be addressed if we are to preserve theEarth’s resources and natural environment we share into the future. As its
Supervision
Reportresource circulation business is located at the end of the supply chain, theManagement Committee
Group has the characteristics to address both of these important social issues
Supervision
Reportthrough its business. This is precisely the social responsibility we believe theGroup should fulfill.

Role of Conference Bodies to Address Climate
Change within the Sustainability Promotion System

Selection
Supervision
Dismissal

ReportConference Body

Role

Board ofDirectors

Supervises progress on initiatives related toenvironmental issues discussed and approvedby the Management Committee.
Meets monthly.

Management
Committee

Decides on important matters related toindividual, specific instances of businessexecution, and makes decisions on timely
disclosure. Meets monthly.

Sustainability
Committee

Discusses the organization and operation of
the committee and other important mattersconcerning sustainability in order to promote
the medium-term management plan. Meets
monthly.

Representative Director

Instruction

ReportSustainability Committee

Governance

Chairperson : President and representative director

Sustainability Promotion System

Instruction

Secretariat : Corporate Strategy Division

To promote policies and measures related to climate change response andother sustainability matters, the Group’s sustainability promotion system has a
Sustainability Committee that consists of the president and representative

Initiatives to
Date

2018

Joined RE100

ReportMembers : Full-time directors, executive officers, heads of related departments

2019

Announced
endorsement of the
TCFD
recommendations

Instruction

ReportIndividual departments and Group companies

2020

Declared a commitment
to become carbon
neutral by 2050

2021

Incorporated theSustainability Committee
into the governancestructure2023

In the medium-term
management plan,
disclosed CO2 reduction
targets in line with the
Science-Based Targets

3. ESGENVIPRO Group Sustainability Report 2023

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E n v ir on m en t

Environment

Risk Management

Strategy

Identifying and Addressing Risks and Opportunities

At the Group, the Internal Control Committee evaluates and reviews business risks, which are integrated into thecompany-wide risk management process. The Sustainability Committee evaluates and reviews climate changerelated risks. Relevant departments identify opportunities, consider specific measures, and makerecommendations as necessary. The Sustainability Committee evaluates the recommendations and promotes
measures to address them. For both risks and opportunities, particularly important matters are reported to or
submitted to the attention of the Board of Directors.

The Group conducts scenario analyses to examine the risks and opportunities posed by climate change and its
impact on the Group.
We analyzed the Group’s business activities using the Representative Concentration Pathways (RCP8.5)
published by the Intergovernmental Panel on Climate Change (IPCC) and the Net Zero Emissions by 2050
Scenario (NZE) published by the International Energy Agency (IEA). We examined the impact on the Group’sbusiness activities based on the assumption of a temperature increase limited to 1.5°C by the end of thiscentury and the assumption of a 4°C increase.

Climate-Related Risks/Opportunities and Potential Financial Impacts and Responses
Type

Category

Hypothetical examples

Taxes on various types of energy, introduction ofcarbon taxes
Policy andRegulations on the use of recycled plastics
regulation
Traceability of CO2 emissions (DX) mandated

Potential Financial Impact
Risks•Increased costs of using renewable energy•Easing of the supply-demand balance and price decline of ferrous scrap due tothe development of new technologies such as hydrogen-reduction steelmaking

PeriodOpportunities•Expansion of existing recycling business
Short toShort to•Increased demand for ferrous scrap due to shift to electric furnaces, price increase
long termlong term •Installation of large shredder to produce electric furnace materials•Reduction in the thermal recycling of waste plastics•Growth in demand for low-carbon raw materials and fuels (RPF)
Long term •Expansion of material and chemical recycling of waste plastics•Development and commercialization of chemical recycling plants•Lost market entry opportunities due to delays in business development

Mediumterm

Transitional

Technology Expansion of the chemical recycling of waste plastics •Lost business entry opportunities due to delays in technology development

Period•Expansion logistics businesses of scrap, waste•Visualization of GHG emissions•Support for the procurement of carbon credits

Medium tolong term
Medium tolong term

Medium to •Creation and expansion of new markets for the chemical recycling of waste
long term plastics

Medium tolong term

Increased adoption of EVs, ESSs

•Increased demand for nonferrous metals and minor metals due toelectrification (depletion)•Expansion of the Lithium-ion Battery Recycling Business
Short to•Expansion of the business of collection gold, silver, and copper sedimentlong termsludgeShort tolong term

Reputation

Social responsibility as an environment-relatedcompany•Failure to consider the environment, damage to credibility among
stakeholders•Scoring by CDP and other international rating agencies
Short to•Disclosure of information in line with the TCFD recommendations
long term•Disclosure of various approaches through the Sustainability Report

Short tolong term

AcuteIncrease in natural disasters due to increasing
severity of extreme weather events•Decrease in earnings due to such factors as shutdowns and production reductions
caused by damage to plants, difficulties in vessel dispatch, or transportation delays•Decrease in revenue due to lost sales and purchasing opportunities•Increase in insurance premiums and repair/restoration costs

Short to•Enhanced response to issue of waste created in disasters
long term

Short tolong term

Chronic

Increased heat stress due to higher averagetemperatures•Decrease in productivity due to restrictions on working hours•Increased cost of investing in environmental improvement

Short to•Personnel savings, unmanned operation, remote control
long term

Short tolong termMarketPhysical3. ESGENVIPRO Group Sustainability Report 2023

31

E n v ir on m en t

Environment

Metrics and Targets

In fiscal 2022, CO2 emissions (Scope1 and 2) amounted to 6,356 tons, down 50% from fiscal 2017 levels.

The Group has identified GHG emissions and the percentage of electricity generated from renewable energy
sources as indicators to be used in assessing and managing climate change-related risks and opportunities, andhas publicized target values for each.

Percentage of Electricity Generated from Renewable Energy Sources
In July 2018, we became the first company in the global recycling industry to join the RE100 initiative, whichsets the goal of reaching 100% renewable energy for electricity consumed in business activities by 2050. The
target date for RE100 has since moved forward by 20 years, to 2030, to coincide with the government
commitments to go carbon neutral.
In fiscal 2022, renewable sources accounted for approximately 87% of electric power used throughout theGroup.

GHG Emissions
By 2050, the Group aims to achieve effectively zero GHG emissions from all its operations, including theprocessing and recycling of scrap and waste.

Emissions Reduction Targets(t-CO2)(t-CO2)

15,00015,00010,00010,000

5,000

5,000

0

0

2017

Scope1+2■Scope1  ■Scope2

To achieve Net ZeroTo achieve Net Zero

2017
2027

0

2027
2050

0

2050

Reduce Scope 1 and 2 emissions by 63% over 10 years (compared with 2017 levels)
Achieved a 50% reduction by fiscal 2022

(t-CO2)(t-CO2)500,000

500,000

400,000

400,000

300,000

300,000

200,000

200,000

100,000

100,000

0Electricity Consumption and Percentage of Renewable Energy Use, Results and Targets

Scope3

0
2022

（GWh）

2027

60.0

0.0

711,680 t-CO2

The ENVIPRO Group produces recycled materials by shredding and sorting waste. In fiscal 2022, the Group shipped 512,000
tons of ferrous scrap to steel mills and other customers. Steelmaking in an electric arc furnace from steel scrap reduces CO2
emissions by 1.39 t-CO2 per ton compared to manufacturing in a blast furnace converter from natural resources such as ironore (according to materials from the Japan Iron and Steel Recycling Institute). The same amount of iron produced from natural
resources such as iron ore would generate 1,024,000 t-CO2, but the steel production process generated only 312,320 t-CO2,
reducing emissions by 711,680 t-CO2.

40.0

35.0

2027

Expanded calculation categories from fiscal 2022

Note: The reduction standards disclosed in the SBTs are for a 42% reduction in Scope 1 and 2 emissions over 10 years, and for a 12.5% reduction in Scope 3 emissions over five years.

100.0

15.0
10.0

2022

86.5

（%）

80.0

5.0

Initiatives for Reducing CO2 Emissions Impact of Using Ferrous Scrap: Emissions Reduced by

Percentage of renewable energy use (right axis)

100.0

20.0

Reduce Scope 3 emissions by 12.5% over five years (compared with 2022 levels)

Initiatives for Reducing CO2 Emissions

97.3

Electricity consumption (left axis)

25.0

0.0
2017

Production of Low-Carbon Fuel: Emissions Reduced by

2.9
2018

20.0

17.8

0.0
2019

2020

2021

2022

2030

22,040 t-CO2

In fiscal 2022, the ENVIPRO Group sold 29,000 tons of RPF to paper manufacturers and other companies. CO2 emissions perton (calorific value conversion factor) are 2.33 t-CO2 for imported thermal coal and 1.57 t-CO2 for RPF. Comparing the CO2
emissions when the same amount of coal (29,000 tons) and RPF are used, emissions from the use of coal would be 67,570
t-CO2 and emissions from RPF emissions would be 45,530 t-CO2, resulting in an annual reduction in CO2 emissions of
22,040 t-CO2.

3. ESGENVIPRO Group Sustainability Report 2023

32

E n v ir on m en t

Environment

Participation in Initiatives
ENVIPRO HOLDINGS Inc. was established in 2009 with the understanding that the industrial sector should feela strong sense of urgency and work proactively to realize a decarbonized society. Since its inception, thecompany has been a member of the Japan Climate Leaders’ Partnership (JCLP), an industry alliance thatcurrently has 237 member companies (as of April 2023). We actively engage in communication with
policymakers, industry parties, and stakeholders.
We participate in monthly regular meetings and various working groups related to renewable energy utilization
to express our opinions, exchange ideas with other companies, and collaborate on forming a consensus
regarding the direction and targets for JCLP’s efforts towards a decarbonized society, as well as policy
recommendations and other communication initiatives. The Sustainability Committee collaborates to ensurealignment with the ENVIPRO Group strategy and obtain approval before endorsing important proposals andactions undertaken by JCLP.
JCLP serves as the regional partner for RE100, an initiative led by The Climate Group, an international nonprofit organization. We have also joined RE100 and are working together to promote renewable energy.

Assessment of Environmental Initiatives

Climate Change: B

The Group received a “B” rating, the third highest out of nine, in a 2022 study on
climate change conducted by CDP, an international non-profit organization.
We continued to cooperate with the survey in 2023, and the responses are available
on the CDP website. (Evaluation results are scheduled for release in 2024.)

RE100 Plants*1
RE100 Plants
1 Head office plant

ECONECOL Inc.

Kuroda Recycle Co., Ltd.
SYN ECO Inc.
Toyo Rubber Chip Co., Ltd.
VOLTA Inc.

Fujinomiya, Shizuoka

2 Fuji plantFuji, Shizuoka

3 Wood Recycling Center

Fuji, Shizuoka

4 Hamamatsu plant

Hamamatsu, Shizuoka

5 Shimizu plant

Shimizu, Shizuoka

6 Head office plant

Hakodate, Hokkaido

7 Head office plant
8 Plaza Azumino

Matsumoto, Nagano
Azumino, Nagano

9 Head office plant

Maebashi, Gunma

10 Head office plant
11 Fujinomiya plantFuji, Shizuoka
Fujinomiya, Shizuoka

Head officeFujinomiya, Shizuoka

1 E
 CONECOL Inc.

Head office plant

2 E
 CONECOL Inc.

3 E
 CONECOL Inc.

Fuji plant

Wood Recycling Center

8 SYN ECO Inc.

9 T
 oyo Rubber Chip Co., Ltd.

4 E
 CONECOL Inc.

Hamamatsu plant

5 E
 CONECOL Inc.

Shimizu plant

6 K uroda Recycle Co., Ltd.

Head office plant

RE100 (Except plants)

ENVIPRO HOLDINGS Inc.

7 S
 YN ECO Inc.

Head office plant*1 Plants and facilities that operate on electric power 100% from renewable sources

Plaza Azumino

Head office plant

10 VOLTA Inc.

Head office plant

11 V
 OLTA Inc.

Fujinomiya plant

ENVIPRO HOLDINGS Inc.
Head office3. ESGENVIPRO Group Sustainability Report 2023

Environment

Material Balance

Inputs

Outputs

Input resources
Amountprocessed
Distributed
resources*3

Reuse

Raw
materials

649,900 tons

Scrap, waste

Scrap, waste

Used vehicles

Raw materials for polymers, etc.

*1 *2

Recycled Raw Materials, Finished Goods,
and Processing Outsourcing

222,300 tons
414,200 tons
Recycled raw
materials(including
distributed
resources)

1,404
13,300 tons

650,600 tons

42,367

EnergyMWh21,937 MWh

FuelRenewable energy

Non-Renewable energy

On-site PPA

17,569 MWh
2,760 MWh

Reuse

512,900 tons

Scope1

22,400 tons

Scope2

Plastic raw materials

40,600 tons

Scope2

Raw materials for
paper

13,200 tons

CO2 Emissions (Scope3)

Wood chip raw
materials, etc.

11,100 tons

Category 1

Purchased products/services

10,667 t-CO

2

Black mass, etc.

1,100 tons

Category 2

Capital goods

11,109 t-CO

2

Other

3,800 tons

Category 3

Fuel and energy activities not included in
Scope 1 and Scope 2

1,946 t-CO2

605,400 tons

Category 4

Transport/delivery (upstream)

30,700 t-CO

2

1,547

Category 5

Waste generated from business

28,673 t-CO

2

13,900 tons

Category 6

Business travel

82 t-CO

2

Used vehicles

5,136 t-CO

2(market-based standards)

1,219 t-CO

2(location-based standards)

8,823 t-CO

2

m3

t-CO2

Material recycling

700 tons

Category 7

Employee commuting

245 t-CO

2

Thermal recycling

12,200 tons

Category 9

Transport/delivery (downstream)

337 t-CO2

Waste disposal(including
circulatedresources)

Simple incineration

1,900 tons

Category 10

Processing of products sold312,320 t-CO

2

16,200 tons

Category 11

Use of products sold

45,530 t-CO

2

Category 15

Investment

2,199 t-CO

2

Landfilling

100 MWh

33,790443,808

Recycling(including
circulatedresources)

Finished goods

Water

t-CO2

Non-ferrous
metalsFinished goods Polymer products

Disposaloutsourcing

6,356

CO2 Emissions (Scope1+2)*1 *2

Ferrous metals

Subtotal

Electricity

33

E n v ir on m en t

Resource recovery

605,400tons

Total output

650.600tons*4

Recycling rate

Disposal outsourcing (recycling)
Disposal outsourcing (waste)

94.3 %*1 Excluding Nitto Kako Co., Ltd. *2 Excluding reuse *3 Amount of resources distributed through trading company functions*4 The recycling rate is calculated from outputs in the Resource Circulation Business and the Lithium-ion Battery Recycling Business: (amount processed + amount processed and distributed + recycling) ÷ (amount processed + amount processed and distributed + recycling + waste disposal) × 100

Outside director, ENVIPRO HOLDINGS

Hiroko Nomura
Formerly editor in chief of Nikkei WOMAN

President and representative director,
ENVIPRO HOLDINGSTomikazu Sano

President and representative director, ASTOCO

Chiemi Nomura
From contract employee to president

Special Feature Discussion

About ENVIPRO’s Commitment to Diversity in Order to Create the Next Generation of Leaders
ASTOCO, a company that provides welfare service business for people with disabilities announced on July 1,
2023, that Chiemi Nomura would become its first female president. Ms. Nomura has been involved indisability welfare work since entering the workforce, and she has always had a desire to contribute toothers. Upon encountering ASTOCO, she initially joined the company as a contract employee due to personal
circumstances, but later became a full-time employee.

How did you feel when you were approached about taking the position of president?

and propose solutions that addressed the needs and challenges of our users and the company. I am grateful that my
ideas were listened to and recognized, and that I was given the opportunity to implement them.
Hiroko Nomura (below, “Hiroko”): My career has some similarities. At the age of 26, I joined Nikkei Home Publishing(now Nikkei BP) as a contract employee. I worked there for seven years, as my annual contract was renewed eachyear. In my mid-30s, I became a regular employee and eventually had the opportunity to become the first female
editor-in-chief. During this time, I received rigorous training, without experiencing any discrimination based on
gender or employment status. There were times when I would work through the night only to have my manuscript
thrown in the trash, with comments like “Our customers pay for this magazine; we can’t publish an article likethis” (laughs).

Chiemi Nomura (below, “Chiemi”): There was no way I could decline the offer to become president. I was delighted to

Sano: Regardless of employment status or gender, in order to sustain a successful business, it is essential to havebe recognized for my efforts so far, so I responded without hesitation in saying “Thank you!” and “I’ll do it!” I am able
to be president at the company today because even as a contract employee initially, I was given the chance to plana professional mindset that responds to the needs and demands of society and customers, a drive and the animal
spirits to accomplish goals, and a sense of rigor towards work. We strive to create an environment where3. ESGENVIPRO Group Sustainability Report 2023

S oc ial

35

Special Feature Discussion

individuals with such a mindset can grow.
However, that alone is not enough. In the past,when I found myself in difficult situations andworking with a furrowed brow, employees said,“The president’s face looks gloomy, it brings down
the mood, and that’s why I want to resign.” I thenrealized that in addition to rigor, I needed tomaintain a sense of positivity and softness toensure a balanced approach.
Several months have passed since Chiemi
Nomura took office as the president. As many
ASTOCO employees are women balancing workand family life, they are beginning to see her asrole model. Hiroko Nomura’s appointment as
outside director led initially to a shift inawareness within the Group. The employee satisfaction survey conducted in August 2023 showed that thenecessary for the ENVIPRO Group to foster a culture where both men and women aspire to leadership andmanagerial positions. This requires creating an environment supported by care and affection, as well as
providing opportunities for personal growth. It is my role to facilitate the cultivation of such an atmosphere andcoordinate the steps toward these goals.

The Essence of Diversity
The ENVIPRO Group has set the goal of creating 100 business promoters. In this context, what are some of thechallenges to the advancement of women? (Currently 20% of employees are women, and the company aims for
women to occupy 20% of management positions by June 2028.)
Hiroko: For example, let’s consider a hypothetical scenario. In one case, the head coach of the Japanese nationalsoccer team would select players only from Eastern Japan and not from Western Japan. The other approach is
to select talented players from all over Japan. It is clear which approach would be more likely to build a teamworthy of competing on the world stage. In Japan, as the working-age population decreases, companies need to
select talented individuals regardless of gender in order to be competitive. In that sense, I believe that the
ENVIPRO Group still has room for growth.

number of female employees aspiring to become managers was equivalent to their male counterparts.

Sano: For instance, we need to change the entrenched notion that women do not belong in the production
department.

Chiemi: I have started hearing the women around me say things like “I want to aim for a managerial position.”
Maybe this is because people who used to feel distant, such as the president and managers, have become more
approachable, making it easier to envision career advancement and the subsequent impact on their personal
life. Another noticeable change is the increase in participation and contributions in internal meetings, especiallyfrom male employees.

Hiroko: Often, kindness is intended when men say

Hiroko: In homogeneous decision-making groups, such as those of the same gender and age group, sometimes
people have an unspoken and shared understanding, so there is less need to express thoughts explicitly.
Chiemi: During the companywide meetings, we strive to maintain a friendly and approachable atmosphere. However,there are times when we have to be firm in responding to non-negotiable situations, such as addressing challenges
or making important decisions. While conveying the purpose of our work and teamwork, we also ensure that we
don’t forget about femininity and kindness, being mindful of the fact that we are women.
Hiroko: Women face a double bind. If they lead with strength, they’re told they’re not feminine enough, but if they

are kind and feminine, they’re told they’re not leading effectively. It can be difficult to strike a balance between
being feminine and being a leader, can’t it.
Sano: In a society where many people express a desire not to pursue career advancement, I believe it issuch things as “Women shouldn’t work in
production or on rotating shifts.” However, thisactually creates a glass ceiling that limits career
opportunities for women. Whether it’s in production
or any other workplace, when a workplace is mademore accommodating for women, it creates anenvironment that is also more suitable for men andthe senior workforce. It becomes a workplace thataligns with the values of younger generations.
Sano: People who have experience in on-site roles

such as in production and sales should be the ones
to become managers. It is essential to provide andcreate an environment where individuals can gainsuch experience. We need to think about how to3. ESGENVIPRO Group Sustainability Report 2023

36

S oc ial

Special Feature Discussion

create a work environment where both men andwomen can work without gender disparities.

Aiming to Become an Organization
That Embodies “A Disciplined Groupof Autonomous Individuals with
Emergent Abilities.”
What is the background for encouraging employees
to register with recruiting firms and saying theyshould increase their own market value?

Company Growth Contributes Directly to Society
Sano: Japan is facing a pivotal time amid the challenges created by the country’s three lost decades. We face aprojected decline in the workforce and a changing landscape among service industries in such areas as
manufacturing and finance, as well as evolving perspectives on diversity. This situation calls for change, as well as
offering new opportunities for growth. Companies play an increasingly crucial role in this transformation.
Organizations that embrace diversity contribute to a company’s sustainable growth, and this collective effort
ultimately leads to the growth of the nation. Simply accepting the status quo might mean not having to struggle orface hardship, but in order to become an enduring company, we need to challenge ourselves with ambitious goals.
ASTOCO and other members of the ENVIPRO Group have the potential and the wherewithal to contribute to society.
We must move unhesitatingly forward to ensure that the company growth aligns with its contribution to society.

Sano: Employees who have specialized experience in
M&A and post-merger integration processes, as wellas in other areas, bring rare value to the company. It
is worth their while to consider registering with a recruitment agency to get a sense of their true market value. I
also believe that individuals should actively strive to increase their market value. As president, I need to maintain acertain level of tension within the company to ensure that employees do not grow complacent. For this reason, I
believe we need to promote diversity in compensation. Rather than adhering to the usual wage system, we need toprovide challenges and opportunities to a select group of individuals who drive business initiatives. At the sametime, we need to raise the overall level of compensation, too. I believe that it ultimately comes down to everyone
working together to earn a solid income.
Hiroko: Given the growing labor market mobility of highly specialized personnel, we need to feature diversity in ourcompensation packages.
Sano: It is great to see an increase in return hires as liquidity improves. We are seeing more people returning to us

even after having once left for a variety of reasons. The experience they gain in other organizations that might nothave been possible within the ENVIPRO Group is invaluable, as it often means they can make valuable contributionsin their current roles.
Hiroko: Experiencing different organizations and having diverse experiences expands individual diversity. As a result,individuals grow and become more adaptable to change, which in turn contributes to the growth of the organization.
Sano: As is expressed by the company’s core organizational philosophy, to be “a disciplined group of autonomous

individuals with emergent abilities” we recognize the market value of autonomous individuals. However, within theorganization, a certain level of discipline is necessary, so it is important to create an environment where individuals
can leverage their strengths through mutual understanding.

ProfileHiroko Nomura

Tomikazu Sano

Chiemi Nomura

Graduated from Ochanomizu University in 1984.
In 1999, launched the Woman of the Year by theeditorial department of Nikkei WOMAN,
published by Nikkei Home Publishing, Inc. (nowNikkei Business Publications, Inc.). In 2003,
became editor-in-chief of that publication, waslater appointed as senior staff writer of Nikkei
Inc., and became a professor at Shukutoku
University. In April 2020, was named distinguishedvisiting professor of Tokyo Kasei Gakuin University

Joined SANO MARUKA SHOTEN (currently
ECONECOL) in April 1974. After serving as
secretary of Mr. Masumi Ezaki, a member of theHouse of Representatives and holding executive
positions at Group companies, was named
president and representative director of ENVIPROHOLDINGS in May 2010.

After graduating from the School of Allied Medical
Sciences, Shinshu University, in 2003, worked as
an occupational therapist in the field of disability
welfare. Joined ASTOCO in 2019 and became amanager at the company in 2022. In July 2023,
assumed the position of representative director.
Currently also dedicated to raising herelementary- and middle school-aged children.

3. ESGENVIPRO Group Sustainability Report 2023

SocialBuilding a “Platform” Filled with Good-Quality Energy Where All Employees Work Energetically

The ENVIPRO Group aims to achieve employee satisfaction by creating a workplace environment based on
its corporate philosophy, where leadership fosters a “platform filled with good-quality energy where all
employees work energetically.” This environment promotes challenges and a sense of fulfillment, allowing
each employee to maximize their abilities. By meeting the demands of society and customers, ENVIPROGroup strives for sustainable growth.

A Deep Attachment to Instilling the Corporate Philosophy
We consider our corporate philosophy to be the company’s most important corevalue and essential to its DNA. Our corporate philosophy was developed over thecourse of approximately one year by weaving together the founder’s worldview,
beliefs, sayings, and thoughts of the executives, and other ideas inherent in thecompany. To create a positive corporate culture and a strong corporate
atmosphere, we will continue to work with unwavering determination to ensure
the widespread adoption of our corporate philosophy.

Date

Attendees

Directly hired
employees

Percentage
attending

FY06/21

48

583

8%

FY06/22

235

617

38%

781

17%
(52%)

Candidates for the Position of President of
ENVIPRO HOLDINGS and Group Companies
Human resources with experience in businessstart-ups, group development, finance,business investment decisions, etc.

Human resources who promotebusiness by utilizing in-depth expertisein identify fields such as DX,
intellectual property management,
R&D, etc.
Briefing session

Project Promotion Leaders
Management
personnel

Specialists

Generalists

Human resources who have broad
knowledge and multifaceted vision intarget areas, and who can bring
together people in charge of various
fields

Recruiting
Interview with a New Employee

Empathize greatly, empathize generally
Generally do not empathize, do not empathize
FY06/19
FY06/20
FY06/21
FY06/22
Ongoing target
0

Growing with the company in an
Environment That Enables Young People
Joined April 1, 2023
to Take on Challenges
ENVIPRO HOLDINGS Inc.
Gooyoung Heo, Corporate Planning Department, Corporate Planning Division

FY06/23130 (413 to date)

About Human Resources for Business Promotion

Leaders in the Deployment of
Leading-Edge Technology

Empathy with Corporate Philosophy Expressed in the
Employee Satisfaction Questionnaire

Attendees of Corporate Philosophy Briefing Sessions

FY06/2337

S oc ial

During my university days, I conducted research during a seminar about “The Impact of Climate Change Risks on
20

40

60

80 100（％）

Shareholders’ Equity Cost.” As I learned about the global movement addressing climate change, I became interested in
the growth potential of the environmental business, which ultimately led me to join the company. Currently, I am involved

Creating 100 Business Promoters
The ENVIPRO Group’s growth trajectory is largely attributable to its development of new technologies, services, andproducts that society demands, as well as the expansion of operations into various regions through M&A activities.
To lead the growing demand for a circular economy, the Group prioritizes the creation of human resources to drive
business strategy. By reinvesting the profits generated from these growth factors into the next phase of growth, theGroup aims to create 100 personnel for business promotion over the next five years and thereby establish asustainable foundation for long-term growth.

in creating key performance indicators for the entire Group to achieve our medium- to long-term goals. It is rewarding to
be entrusted with autonomous tasks and to have the opportunity to collaborate with executives at the department
manager level and above for meetings and discussions. Also, as the company has a large number of Korean customers, I
find fulfillment in handling tasks I am uniquely able to do, such as serving as an interpreter during visits. Going forward,
my goal is to disseminate and implement the KPIs I have created within the Group and work together with businesscompanies to refine these KPIs, taking into account any issues that may arise. In addition to supporting each company, I
hope to contribute to the growth of an organization where I can help improve and optimize operations, and think about thedirection of business strategies. I hope to gain various experiences and eventually become involved in management.

3. ESGENVIPRO Group Sustainability Report 2023

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Realizing the Corporate Image of “A Disciplined Group of Autonomous Individuals with Emergent Abilities”*

SocialGrowthBusiness School

Interview with a Business Promotion Leader

In addition to deepening understanding of the business operations, improving management abilities is also an
important educational theme in terms of cultivating personnel for business promotion. We are in the process of
implementing a goal management system and providing training for evaluators to ensure consistent goal setting
across each company and department, aiming to enhance corporate value.

Becoming a Leading Company throughIndustry Restructuring

Overview of Business School Themes in FY06/23

I encountered the company while struggling with the dilemma of balancing social contribution and business profitability
after starting my own business during university. Currently, I am involved in developing and promoting overall Groupstrategy, M&A and investment collaboration strategies, various research activities, and consulting for each company
within the Group. With one project after another emerging, I find joy in treating each event as my own and considering
how to address them. I enjoy working in this dynamic environment. One significant project I was involved in after joining
the company was the acquisition of Nitto Kako Co., Ltd. It was a valuable experience to be involved in the acquisition ofa listed company through a public tender offer. My personal goal is to transform the Group into an entity that cangenerate consistent profits regardless of market conditions. I constantly think about what decisions I would make if I
were the top executive of the company and strive to enhance business activities and improve ROIC by adding value. I
aspire to build my career without being bound by my affiliation or position to take a lead in restructuring the industry
and promoting more efficient mechanisms for resource circulation.

Training Content

Participants

Satisfaction

Training Content

Participants

Satisfaction

Waste disposal law and various recycling laws

32

97%

Management accounting, cost accounting andbudgeting

47

94%

Business flow and business models

43

97%

The need for team meetings

66

100%

97%

Mental health
Note: Held twice

120 to date

95%

56

90%

Psychological safety
Note: Held three times

201 to dateRemuneration system and evaluation
Note: Held twice

82 to date88%

Organizational development, vision and casestudiesManagement authority and responsibility,
agenda items

35

96%

Importance of recruitment

17

100%

CDP/TCFD climate change initiatives anddisclosure

22

89%

Role and importance of contracts

66

100%

Entrenchment

One aspect of the ENVIPRO Group’s corporate philosophy is a call for every employee to exert efforts to become theleading player of a business that suits them. In order to align the ratio of women in management positions with theratio of female employees, we have set a medium-term goal of having 20% of management positions be held by
women. We have also implemented mentorship programs and other initiatives to support the recruitment anddevelopment of female employees, aiming to establish achievable goals that encompass the entire process.

(Women)25
20
15

Percentage of women
returning to work afterchildcare leave

Percentage of men
taking childcare leave

FY06/20100%

0%FY06/21100%

6%FY06/2280%

17%FY06/23100%

8%

FY06/28 (target)

100%

90%

(%)

16
12

10

8

5

4

0

Percentage of Women Returning to Work afterand Men Taking Childcare Leave

20

Number of women in management
positions (left scale)
Ratio of women in management
positions (right scale)

FY06/20

FY06/21

FY06/22

FY06/23

FY06/28(target)0

ENVIPRO HOLDINGS Inc.
Yutaro Hashimoto, Manager, Corporate Strategy Section, Corporate Strategy OfficeInterview with a Working MotherPromoting Diversity

Number and Percentage of Women in Management Positions

Joined February 1, 2022

Balancing Family and Work in an
Joined April 2, 2007
Environment Where You Can Choose
NEWSCON Inc.
Where and When you Work
Yukina Mochizuki, Business Support Section
I joined the Trading Department of ECONECOL Inc. as a new graduate in 2007, and I have taken maternity and childcare
leave three times. Currently, I am engaged in trade operations in the Business Support Department of NEWSCON Inc.
Upon returning to work, I faced challenges such as being unable to work overtime frequently due the need to pick up mychild at the nursery, as well as having to make sudden changes to my work schedule due to a child’s ill health.
However, I am grateful to be working in a supportive work environment where they understand my family situation andprovide mutual support. While I want to prioritize my work, I also realize that my oldest son is now in the fifth grade, andI may have only a little time left to spend quality time with him. Utilizing shortened working hours allows me to switch toremote work or adjust my schedule through flextime arrangements during times when a child is unwell or when there
are school events to attend. Having the ability to choose where and when I work creates a very flexible andaccommodating environment. Lately, I have been handling a lot of trilateral trade, and the variety of commercial flows I
deal with has grown more diverse. Although I can handle these activities by drawing on my past experience andknowledge, I feel a need to further enhance my expertise in trade practices. Once I have a bit more flexibility inchildcare, I would like to take on the challenge of obtaining a customs broker license, as I aspire to gain more
specialized knowledge in trade operations.

* Emergent abilities: The ability to make decisions, take action, and drive results in the field Autonomous individuals: A person who is full of initiative, creativity, and lives independently Disciplined group: A group of people who can keep time, maintain cleanliness, and uphold correct decorum3. ESGENVIPRO Group Sustainability Report 2023

Social39

S oc ial

Establishing a Brand as a Safe and Clean Company

I. The ENVIPRO Group’s Environmental and Safety Activities
To realize a sustainable society, it is essential to have good environmental impact and employee safety
management. We work to prevent environmental pollution by introducing measures to prevent potential noise,
vibration, dust, and wastewater, mainly at manufacturing plants. In addition to employee safety education, risk
prediction activities, and other awareness-raising activities, we regularly patrol our offices and conduct otheractivities on an ongoing basis to ensure thorough safety management.
Accidents—particularly serious accidents or those at plants or offices involving machinery and plant or heavyequipment—have the potential to affect many stakeholders, including employees and their families, nearby
residents, business partners, and investors.
To avoid such impacts, we give topmost priority to managing the surrounding environment, maintaining andimproving the work environment, and ensuring the safety of our employees. In this way, we endeavor to ensurestable business activities in accordance with our policies. The ENVIPRO Group is committed to preventing harm topeople and the external environment.

Activities of the Environmental & Safety Promotion Committee are reported to full-time directors of ENVIPROHOLDINGS and the presidents of Group companies at monthly meetings of the Internal Control Committee (chairedby the president of ENVIPRO HOLDINGS). Policies and developments are communicated through the Environmental& Safety Promotion Committee to individual workplaces of each Group company. The Environmental & Safety
Promotion Committee consists of members appointed from each Group company, who together with the president
actively promote the companies’ environmental improvement and safety assurance initiatives.
Structure of theEnvironmental & Safety
Promotion Committee

Internal Control Committee
Chair: President and Representative Director of ENVIPRO HOLDINGS Inc.

Instruction

Reporting

Environmental & Safety Promotion Committee
Group Companies

Members: One or two people from each company•ECONECOL Inc. •Kuroda Recycle Co., Ltd.
•ASTOCO Inc.
•Nitto Kako Co., Ltd.
•ARBIZ Corporation
NEWSCON
Inc.
SYN
ECO
Inc.
Toyo
Rubber
Chip
Co.,
Ltd.
VOLTA
Inc.
•
•
•
•
•ENVIPRO Inc.
Cyterrace
Co.,
Ltd.
One
or
two
committee
membersareselectedfromeachcompany
toencouragethebilateralsharingof information.
•

II. Positioning the Environmental & Safety Promotion Committee
1. Activities and Role
We have established the Environmental & Safety Promotion Committee, which is responsible for initiatives acrossthe Group companies. The committee’s objective is “to establish a brand as a safe and clean company.” Thecommittee has established the following three policies, which it is working to fulfill.
Policy 1 Create a Safe and Comfortable Workplace
We conduct hazard protection initiatives before commencing tasks, offer regularly scheduled education and training, runsafety competitions, and establish risk management and other safety activities. We take regular measurements of theworking environment, measuring vibration and noise, analyzing water quality, and implementing ongoing improvement
activities to create a comfortable workplace.

Policy 2 Share Information
The Environmental & Safety Promotion Committee emphasizes information sharing and empathy. We strive to invigorate
committee activities, reporting on individual companies’ efforts to roll out their activities horizontally within the Group. The
committee also examines causes and shares corrective measures in the event of industrial accidents, other accidents or
damage, and environmental abnormalities. We work to prevent recurrence and promote activities in a uniform direction.

2. Activities to Date
By sharing the details of individual Group companies’ discussions
and initiatives via documents, images, and video, the committee
helps each of them efficiently and effectively incorporate the items
they need. The Environmental & Safety Promotion Committee hasrolled out a number of items horizontally across Group companies.
These involve risk prediction activities (operational methods),
methods for operating prediction activities, maintenance of flower
beds at workplaces, installation of drive recorders on forklifts, theintroduction of fire extinguishers for lithium-ion and otherrechargeable batteries, the introduction of misting equipment for
dust control and conducting special training across the Group.

1. Environmental Activities at Group
Companies
Employee measurement of the working

environmentImplementation of vibration countermeasures

at existing facilities
Implementation of dust control measures infactories
In-plant pigeon control and extermination
Addition of in-plant lighting, switch to LEDs
Fire drills (evacuation and rescue drills)
Maintenance of flowerbeds

Policy 3 Raise the Management Level
The Group’s operating companies have acquired certifications under ISO 14001 (environment) and ISO 45001 (occupational
health and safety). In addition, each company promotes activities to ensure the safety and health of its employees and toprotect the environment through the operation of its management system.
Conducting first aid training

Maintaining flower beds

In-plant measures to control dust

3. ESGENVIPRO Group Sustainability Report 2023

S oc ial

40

Social2. Safety Activities at Group Companies
Installation of security cameras in plants
Introduction of forklifts with safety devices
Installation of safety devices, safety barriers, and emergency
stops at existing facilities
On-site inspections in the event of industrial accidents

Firefighting drill

Holding of safety competition
Implementation of special training by people who have completed
the instructor training course
Introduction of emergency communication devices for factory
workers

Introduction of emergency communication devices
for factory workers

Implementation of special training by people whohave completed the instructor training course

3. Results in the Fiscal Year Ended June 2023
The number of accidents at the ENVIPRO Group has been trending downward since the fiscal year ended June
2020, owing to the strengthening of environmental and safety activities and the establishment of the Environmental& Safety Promotion Committee. In the fiscal year ended June 2023, the Group experienced 12 occupational
accidents, two fewer than in the previous year; 72 accidents, up 10 year on year; and seven environmental
Industrial Accidents

Number of Regular Employees and Rate of Accidents andIndustrial Accidents per Employee(Number)

30

26

25
20
15
10

(People)

600

13

13

14

FY06/20

FY06/21

FY06/22

12

500

5
0

FY06/19

FY06/23(Number)

60

68

63

57

62

72

40

16.26

14.22
443
418

472

12.07

400

200
100

20
0

Rate of accidents (right scale)
Rate of industrial accidents (right scale)

498

18

506

14.29

12.44

FY06/19
FY06/20*Excluding Nitto Kako Co., Ltd.

FY06/21

FY06/22

FY06/23

0

9

6.22
2.93

6

2.75

2.81

2.37

4. Plans for Future Initiatives (Year Ending June 2024) and KPIs
The Group has established an annual activity plan for each company based on the three policies mentioned above
and with the objective of “establishing a brand as a safe and clean company.” While the ultimate goal is to achieve
zero accidents, as medium-term KPIs, we aim to halve the number of industrial accidents (with zero cases of workrelated accidents resulting in leave of absence), the number of accidents, and the number of environmental
abnormalities. We will conduct planned activities and continue to lower the number of incidents year on year,
promoting these efforts across the ENVIPRO Group to reach our medium-term KPIs as soon as possible.

15
12

300

Accidents
80(%)

Number of regular employees (left scale)abnormalities, down two. The number of regular employees at the ENVIPRO Group has grown by 88 over the past
five years, from 418 at the end of June 2019 to 506 at the end of June 2023. While the number of industrial
accidents per employee* have decreased, the absolute number of accidents has trended upward.
Although the number of industrial accidents decreased, the majority of victims were employees with less than one
year of experience, accounting for six out of 12 cases. There were two cases involving employees with less than
three years of experience, and four cases involving employees with three or more years of experience, indicatingthat less experienced workers were more
Accidents by
Accidents by
Day of the Week
Category
accident-prone.
Sunday Sunday
Others Others
We have investigated the days of the week on
Saturday Saturday
Monday Monday
which accidents occurred and identified the
Forklifts Forklifts
trends for the increased number of accidents. Friday Friday
Heavy Equipment
Tuesday Tuesday Heavy Equipment
We also conducted an analysis of incidents by
category and presented the details to theThursday Thursday
Wednesday
Wednesday
Vehicles Vehicles
Environmental & Safety Promotion Committee.

30FY06/19
FY06/20
FY06/21
FY06/22
FY06/23*Rates are calculated as (number of cases ÷ number of employees) × 100.

DX for Conservation

We are striving to automate our plants, in the aims of improving productivity, including through energy conservation,
reducing over-dependence on specific individuals for plant operation, and ensuring stable operation despite Japan’s
decreasing population. Furthermore, by quickly identifying the condition of facilities, we will promote proactive
maintenance activities to prevent unforeseen breakdowns and strive for stable supply and cost reduction.
We will install various sensors and cameras for to acquire data for to facilitate AI technology and system deployment. We
will also establish a network environment for centralized data management. In the implementation process, we will
engage with stakeholders and manufacturers in trial and error to create a system operation environment that matches ourplants and facilities. We will start by promoting these efforts at ECONECOL Inc., and then expand horizontally, focusing on
companies in the Resource Circulation Business.

3. ESGENVIPRO Group Sustainability Report 2023

SocialS oc ial

41

Engaging in a Variety of Activities That Contribute to the Local Community

Publication of an Original Picture Book, Boku no Te ha Maho no Te (“My Hands are Magic Hands”)
SYN ECO Inc. and ASTOCO Inc. published a picturebook called Boku no Te ha Maho no Te (“My Hands
are Magic Hands”). Based on the true stories of
two companies based in Nagano Prefecture, thefilm depicts the main character, a male employeewith a disability, finding fulfillment in being able toperform dismantling work on computer equipmentwith greater precision than machines, even if hecannot perform actions considered “normal” bysociety. The story conveys the message that there
is always a place in society where both resources
and individuals can shine, through the statementthat “There is nothing in the world that is
unnecessary. There are no unnecessary people.”
We have donated books to local governments in
response to their requests to utilize it for welfare
and educational purposes.

the plant, they are able to engage enthusiastically with heavymachinery and equipment. With global interest in recyclinggrowing, elementary school students are also showing a highlevel of interest in recycling, asking many questions and actively
participating in the tours. We will continue our efforts to inspire
the next generation and contribute to a sustainable future.

Participating in a Coastal Cleanup Event

Books Donated in 2023
Matsumoto city, Nagano 444
Azumino city, Nagano

44

Fujinomiya city, Shizuoka 176
Fuji city, Shizuoka
Kibune Elementary School,
Fujinomiya, Shizuoka

200
4

Production Episodes
We were introduced to Junko Terashima of Furai-sha by Yoshiharu Shimizu, who supervised our corporate philosophy. Ms. Terashima’s
visit to SYN ECO Inc. and ASTOCO Inc. became the inspiration for creating picture books. We have carefully captured the essence of ourdaily work and transformed it into a storybook, paying close attention to every word and fine-tuning the illustrations.
The illustrator who created the artwork is a talented artist with a hearing impairment. The illustrator visited the factory, experienced thedismantled objects firsthand, and we communicated through written conversations to collaborate in creating the picture book together.
We hope that people of all ages will pick up the book and understand not only the importance of resources but also the option of working
and earning a living independently, even for people with disabilities.

Holding Tours for Elementary School Students
SYN ECO Inc. welcomes approximately 400 elementary school students for factory tours each year at both its head
office plant and Plaza Azumino. We strive to make each tour a valuable learning experience by incorporating various
interactive activities. During classroom sessions, the students actively participate and provide answers, while inside

Microplastics havebecome a significant
social issue in recent
years, affecting thenatural environment andecosystem. Even small
pieces of plastic waste
can turn into thousands ortens of thousands ofmicroplastics once they flow into the ocean. To help address this situation, ECONECOL Inc. participated in the “6R
Citizen Movement” beach cleanup event held at Fujinokuni Tagonoura Minato Park.
(Organized by Shizuoka Prefecture and the Seven-Eleven Foundation, in cooperation with Yamanashi Prefecture, Fuji City, andFujisan Club (a certified NPO); and in collaboration with Fukuoka Prefecture)

Computer Dismantling Course at the Seibu Cleaning Plant in the city of Hamamatsu
October is “Reduce, Reuse, Recycle (3R) Promotion Month.” Aspart of our efforts to promote the 3R initiative in October 2022,
ECONECOL Inc. conducted the fifth computer dismantlingworkshop at its Seibu Cleaning Plant in the city of Hamamatsu.
In the workshop, participants received explanations about
precious metal recycling and had the opportunity to experience
the actual dismantling of computers. Participants of all ages,
from children to adults, joined the workshop.

3. ESGENVIPRO Group Sustainability Report 2023

GovernanceSupporting Sustainable Growth by Instilling Our Corporate Culture into Every Corner of the Organization

History of Corporate Governance
2010

2011

Corporate Governance Structure• Established current ENVIPRO HOLDINGS Inc.
• Introduced executive officer system

General Meeting of Shareholders
Appointment/Dismissal• Established Internal Control Committee

2013• Listed on the Second Section of the Tokyo Stock Exchange

2015• Established the Internal Control Basic Policy

2017

2018

2021

•Established the Appointment and Remuneration
Committee• Established the Audit and Supervisory Committee

Internal Control Committee•IT Promotion Committee•Human Resources and• Formulated criteria for the selection of outside auditors

Board of Directors

Met 15 Times in Fiscal 2022

The company’s Board of Directors has 11 members, of whom six are outside directors(including three members of the Audit and Supervisory Committee). In principle, the board
meets monthly. The Board of Directors makes decisions on matters important to the
execution of the company’s business, and oversees the execution of directors’ duties. At
meetings of the Board of Directors, the president acts as chair to respectfully draw out theopinions of directors, not from the viewpoint of short-term benefits, but rather to discusseven seemingly irrelevant policies or measures and other matters from the perspective of
medium- to long-term business growth.

Promotion Committee

Labor Reform Committee•Operations Reform
Committee

Audit
Corporation

ReportSelection

ReportCollaboration

Dismissa

ReportReport• Disclosed a medium-term management plan
•Changed the Sustainability Committee to a key meeting

Collaboration

Audit and Supervisory
Committee

ReportManagement Supervision
Committee
Supervision•Environmental & Safety(Sustainability Strategy)

Supervision

Appointment andRemuneration Committee• Listed on the First Section of the Tokyo Stock Exchangebody for promotion of the medium-term management plan2022

Proposals

Appointment/Dismissal
Audit/
Supervision

Board of Directors
Advising

2016

42

G ov er n an c e

Representative Director
Instruction
Instruction
Collaboration

Instruction

ReportAccounting audit

ReportDepartments, Group companies

Audit and Supervisory Committee

Collaboration

ReportSustainability
Committee

Instruction

Internal Audit
OfficeInternal audit

Met 14 Times in Fiscal 2022

The Audit and Supervisory Committee consists of three outside directors. In addition to attending General Meetings of Shareholders and Board of
Directors meetings, directors who are Audit and Supervisory Committee members actively participate in internal meetings and work to understandthe situation within the company, including the management system and the execution of business. The Audit and Supervisory Committee also
meets regularly with the president and representative director to exchange views and maintain communication on issues that the company should
address, the state of the environment for auditing by the Audit and Supervisory Committee, and other important matters pertaining to auditing. In
order to maintain close collaboration with the Internal Audit Department and the accounting auditor, the Audit and Supervisory Committee holds
regular liaison meetings with these and otherwise engages in exchanges of information to enhance auditing functions. In addition to the Internal
Audit Office, the committee also collects information from the internal control departments to conduct more thorough audits.

3. ESGENVIPRO Group Sustainability Report 2023

43

G ov er n an c e

GovernanceAppointment and Remuneration Committee

Met Three Times in Fiscal 2022

The Appointment and Remuneration Committee is composed of five members: the representative director, one senior
managing director, and three outside directors who are independent senior executives. As an advisory body to theBoard of Directors, it conducts preliminary deliberations on the nomination of director candidates (excluding those whoserve as members of the Audit and Supervisory Committee), remuneration for directors, and other matters.

Management Committee

Met 12 Times in Fiscal 2022

The Management Committee consists of the full-time directors and the chair of the Audit and Supervisory Committee.
It may also include some executive officers, department managers, and members of Boards of Directors of Group
companies, as required for matters to be deliberated. The Management Committee generally meets once a month.

Sustainability Committee

Met 12 Times in Fiscal 2022

The Group has an Internal Control Committee chaired by the company president. This committee consists of four
subcommittees: the Environmental & Safety Promotion Committee, IT Promotion Committee, Human Resources andLabor Reform Committee, and Business Operations Reform Committee. The committee identifies risks, formulates
countermeasures, and builds and operates internal controls across the Group, including awareness-building activities.
The Internal Control Committee generally meets once a month and is composed of the company’s full-time directors,
executive officers, the chair of the Audit and Supervisory Committee, the presidents of affiliated companies (excluding
affiliates accounted for under the equity method), and the chairs of subcommittees.

Assessment of Board of Directors EffectivenessIn order to analyze and evaluate the effectiveness of the Board of Directors as a whole, the company conducts aquestionnaire survey of directors each June to inform future initiatives.
Questionnaire Content
1 Operation of board meetings•Are the materials, progress, explanations, etc. sufficient?
2 Matters for discussion at Board of Directors meetings

•Are you able to participate appropriately in decisions on business strategies?

3 Roles and responsibilities of the Board of Directors

•Are you able to effectively monitor the execution of business strategies, etc.?

Basic Policy
Remuneration should be commensurate with the responsibilities and roles of directors.
In addition to compensation based on short-term performance, incentives should be provided that comprehensively take
into account the improvement of corporate value over the medium to long term.
Directors should share an awareness concerning profits with shareholders.
Compensation levels should be effective in retaining excellent human resources.
The system should be flexible at adapting to changes in the market and industry environment and to changes in strategic
objectives.
Directors should contribute to the development of a positive corporate climate and a strong corporate culture.
Components of Remuneration

Met 11 Times in Fiscal 2022

The Sustainability Committee consists of full-time directors, executive officers, and some related department
managers, meeting once a month. The Sustainability Committee seeks to promote the medium-term management
plan that forms our strategy for achieving sustainable development for both the group and society. As an organization
assisting decision-making by the representative director, it flexibly and actively discusses and examines the status ofstrategy promotion and future directions, including new business and M&A, from a long-term perspective.

Internal Control Committee

Director Compensation System

Basic remuneration  

Performance-linked remuneration  

Restricted share-based remuneration

Future Policy on the Executive Remuneration System
The Appointment and Remuneration Committee deliberates and makes decisions on the structure of executive compensation
to enhance long-term corporate value. Looking forward, we have determined that emphasizing a medium- to long-term
perspective is more important than pursuing short-term profits. Specifically, we plan to reduce short-term performancebased pay and instead focus on promoting a medium- to long-term strategy centered around the concept of “Lead a circular
economy,” as well as building organizational and personnel frameworks. Additionally, we recognize that fostering a strong
corporate culture based on a positive corporate environment is crucial for sustainable corporate growth. We will continue tohave ongoing discussions on the structure of executive compensation to further enhance corporate value.

Dialogue with Shareholders and Investors
The ENVIPRO Group places great importance on engaging in dialogue withshareholders and investors through investor relations. In addition to timely and fairdisclosure of information, we regularly hold explanatory meetings where thepresident personally provides explanations, fostering a trusting relationship andfacilitating exchanges of opinions. Through this dialogue with shareholders andinvestors, we strive to enhance corporate value for the benefit of all stakeholders.

Plant tour

Future Initiatives
We will provide information to outside directors in particular in an earlyand smooth manner in order to secure time for prior deliberations.
We will continue to review the scope of business execution byeach organization with respect to matters to be deliberated by
the Board of Directors.

Details and Frequency of Dialogue with Shareholders and Investors (Fiscal 2022)
Financial results briefings(explanations provided by the representative: Yes)

Individual investor briefings(explanations provided by the representative: Yes)

2 times

Individual IR meetings

62 times

1 timeEvents for institutional
investors

Business briefings 1 time (35 participants)
Plant tours 1 time (9 participants)

3. ESGENVIPRO Group Sustainability Report 2023

44

G ov er n an c e

Governance

Executives

Executives
Number of Directors

Of Which, Outside Directors

Number of Independent Directors

11

6

6

Term of Director Appointment
1 year(2 years for directors who are Audit and Supervisory Committee members)

Executive Skill Matrix
Name

1 President,

Representative Director

Tomikazu Sano

2 Vice President, Director

Fumikatsu Sano

6 Outside Director

7 Outside Director[Independent Director]

Newly
appointed

Hiroko Nomura

Tomikazu
Sano

President,
Representative Director

132

Fumikatsu
Sano

Vice President, Director

13

Kozo
3
Haruyama

Newly
appointed

Norihiro
4
Nakasaku

3 Senior Managing Director

Kozo Haruyama

4 Managing Director

Norihiro Nakasaku

8 Outside Director[Independent Director]

Keiji Imajo

9 Outside Director(Audit andSupervisory Committee member)[Independent Director]

Kiyoshi Shinohara

Newlyappointed

Naoki Takekawa

10 Outside Director(Audit andSupervisory Committee member)[Independent Director]

Hiroshi Kamiya

11 Outside Director(Audit andSupervisory Committee member)[Independent Director]

Tomoya Shiraishi

Senior Managing Director

Naoki
Takekawa

6

Keiji Miyaki Outside Director

Hiroko7
NomuraCN/CE

Finance/
Legal/
Human
Accounting/Taxation Compliance Resources

IT

IR

ExpertKnowledge

8
Newly
appointed

Managing Director

54Director

5

Outside Director

1
Newly
appointed

8

Keiji Imajo

Outside Director

9

Kiyoshi
Shinohara

Outside Director(Audit and Supervisory Committee Member)

1

10

HiroshiKamiyaOutside Director(Audit and Supervisory Committee Member)

2

Tomoya11
Shiraishi

5 Director

Years in Corporate Management Production
Overseas
Strategy Technology
Position Culture

1[Independent Director]

Keiji Miyaki

Position in the company

Outside Director
Newly(Audit and Supervisory Committee Member) appointed

Akiko Ishii

Managing Executive Officer
In Charge of Internal Audits-

Kenta Imai

Executive Officer
Special Assignment to the President-

YasushiSugiyama

Executive Officer
In Charge of General Affairs and Information Management-

Kazutaka
Kitazume

Executive Officer
In Charge of Overseas Strategy and R&D Laboratory-

Reasons for Appointment of Newly Appointed Outside Directors
Keiji Imajo
The ENVIPRO Group judges that Keiji Imajo is capable of providing valuable advice on the Group’s management strategy by drawing
on his knowledge and experience gained through serving as an executive manager and investment officer of listed companies.

Tomoya Shiraishi
The ENVIPRO Group judges that Tomoya Shiraishi is capable of providing valuable advice on the Group’s management strategy by drawing
on his knowledge and experience gained through serving as a director of listed companies and a representative of listed companies.

Reasons for Selecting Skill Matrix Criteria
Corporate Culture

We have adopted this approach because we believe that the topmost priority for ensuring long-term profit and thehighest level of governance is to ensure that our corporate philosophy permeates every corner of our organization.

Production Technology

We have adopted this criterion because knowledge of our areas of business and production technologies are necessary
in order to expand our plants and introduce new technologies in line with our business investments.

Carbon Neutrality
Circular Economy

We have adopted this criterion because this type of expertise is necessary in order to achieve carbon neutrality andexpand our business related to the circular economy.

4. Data Section

ENVIPRO Group Sustainability Report 2023

Company
ProfileCompany Name

ENVIPRO HOLDINGS Inc.

Representative

Tomikazu Sano, President and Representative Director

EstablishedMay 21, 2010

Capital*1,524,830,656 yen

Business

Management and operation of affiliated subsidiarycompanies and associated work

Group Companies*

Twelve consolidated subsidiaries (including sub-subsidiaries),
two equity-method affiliates

Employees *65 on a non-consolidated basis (632 on a consolidated basis)

Listing

Tokyo Stock Exchange, Prime Market (Securities Code: 5698)

Address

Head Office 87-1 Tanakacho, Fujinomiya-shi, Shizuoka, 418-0075 JAPANTEL: +81-544-21-3160 FAX: +81-544-21-3163
Tokyo Office Kyobashi RK Building 9F, 2-5-15 Kyobashi, Chuo-ku, Tokyo,104-0031, Japan
TEL: +81-3-6280-3938 FAX: +81-3-6264-4361*As of June 30, 2023

Group Companies

Resource Circulation Business

Global Trading Business45

Lithium-ion Battery Recycling Business

Other Business

Welfare Service Businessfor People with Disabilities

Environment Management
Consulting Business

ECONECOL Inc.

Kuroda Recycle Co., Ltd.

SYN ECO Inc.

Toyo Rubber Chip Co., Ltd.

ECONECOL Inc. engages in the resource recycling business, centeredon recycling of metals, plastics, and waste.

Kuroda Recycle Co., Ltd. is developing a community-based recycling
business that pursues the founder’s philosophy of “value anything at
hand.”SYN ECO Inc. is developing community-based recycling businesses
that include Mottainai BOX and Katazuke TAI. It has also received
commendation as a distinguished company in the employment of thephysically challenged.

A recycled rubber pioneer that has made effective use of rubber
industry resources for over half a century, Toyo Rubber Chip Co., Ltd.
develops a wide range of applications and contributes to the safety andsecurity of facilities.

3507-19 Yamamiya, Fujinomiya-shi, Shizuoka, 418-0111
TEL: +81-544-58-5800 FAX: +81-544-58-5807

246-27 Nishikikyo-cho, Hakodate-shi, Hokkaido, 041-0824
TEL: +81-138-49-8880 FAX: +81-138-49-8960

2346 Shimadachi, Matsumoto-shi, Nagano, 390-0852
TEL: +81-263-47-3211 FAX: +81-263-47-3213

1573 Fukazu, Kasukawa-machi, Maebashishi, Gunma, 371-0215
TEL: +81-27-285-3131 FAX: +81-27-230-6008

Nitto Kako Co., Ltd.

NEWSCON Inc.

Cyterrace Co., Ltd.

VOLTA Inc.

Nitto Kako Co., Ltd. contributes to the development of various
industries through the polymer business, which includes the
manufacture and sale of industrial rubber products such as rubbercompounds and resin products.

Aiming to be “a company that brings the world closer together,”
NEWSCON contributes to international resource circulation throughthe global distribution and sale of resources such as ferrous scrap,
nonferrous metals, and biomass fuels.

Cyterrace Co., Ltd. handles customs clearance, export procedures,container booking, and management at the loading yard on behalf ofcustomers, serving as a one-stop service for worldwide cargo delivery.

VOLTA Inc. is engaged in the collection and recycling of minor metals,
such as nickel and cobalt, from lithium-ion batteries and nickelhydrogen batteries, It also undertakes the recycling of used casing ofbatteries.

6-1-3 Ichinomiya, Samukawa Town, Koza Gun, Kanagawa, 253-0111
TEL: +81-467-74-3111 FAX:+81-467-74-4755

Kyobashi RK Building 8F, 2-5-15 Kyobashi, Chuo-ku, Tokyo, 104-0031
TEL: +81-3-3528-6223 FAX: +81-3-3528-6224

Yokohama Aioi-cho Building 10F, 6-104 Aioi-cho, Naka-ku,
Yokohama-shi, Kanagawa, 231-0012
TEL：+81-45-319-6125 FAX：+81-45-319-6126

55-1 Ohno, Fuji-shi, Shizuoka, 417-0848
TEL: +81-544-67-2522 FAX: +81-544-67-2523

Equity-Method Affiliate

Equity-Method Affiliate

ASTOCO Inc.

Bright Innovation Co., Ltd.

ARBIZ Corporation

Fuji Eco Cycle Co., Ltd.

ASTOCO Inc. provides support services to help people with disabilities
acquire knowledge and skills, stabilize their lives, and learn how tointeract with society so that they can find a suitable job and become
self-reliant.

Bright Innovation Co., Ltd. provides consulting services to support
the development of environmental strategies and GHG emissions
reduction strategies, as well as proposing solutions such as theintroduction of renewable energy.

A joint venture with USS Co., Ltd., operating in and around the Chukyo
region. It is engaged in a recycling business that crushes and sorts
various types of waste including scrap cars, adopting a unique system forturning waste into resources.

A joint venture with five household appliance companies including
FUJITSU GENERAL LIMITED, the company develops a home appliancerecycling business to create a recycling-oriented society where theenvironment and economy are compatible.

2346 Shimadachi, Matsumoto-shi, Nagano, 390-0852
TEL/FAX: +81-263-31-6098

SHINKAWA EAST 2F, 1-23-5 Shinkawa, Chuo-ku, Tokyo, 104-0033
TEL: +81-3-6280-3936 FAX: +81-3-6280-3937

14-24, Showacho, Minato-ku, Nagoya-shi, Aichi, 455-0026
TEL:+81-52-619-6600 FAX:+81-52-619-6601

1930-4 Nakagawa,Hosoe-cho,Kita-ku, Hamamatsu-shi, Shizuoka, 431-1304
TEL:+81-53-523-1152 FAX:+81-53-523-1153

4. Data Section

ENVIPRO Group Sustainability Report 2023

46

Locations (Domestic)

14

Group companies

Domestic sites

Shipping ports

Head office =Maebashi (Gunma)

12

13

Domestic plants

Ferrous scrap yard

Used car yard

Nonferrous scrap yard

Waste paper yard

Yards

Port of Hakodate (Hokkaido)

Toyo Rubber Chip Co., Ltd.
Niigata Port (Niigata)
Matsumoto (Nagano)Port of Naoetsu (Niigata)

SYN ECO Inc.
ASTOCO Inc.

Hakodate (Hokkaido)

Kuroda Recycle Co., Ltd.

Azumino (Nagano)

SYN ECO Inc.
ASTOCO Inc.

Port of Amagasaki (Hyogo)

Saitama (Saitama)

ASTOCO Inc.

Nagoya (Aichi)

Tokyo

ARBIZ Corporation
Cyterrace Co., Ltd.

ENVIPRO HOLDINGS Inc.
NEWSCON Inc.
Bright Innovation Co., Ltd.
ECONECOL Inc.

Osaka (Osaka)

Port of Kawasaki (Kanagawa)Port of Imari (Saga)Port of Funabashi (Chiba)

Cyterrace Co., Ltd.
Yokohama (Kanagawa)Chiba Yard (Chiba)

Cyterrace Co., Ltd.

Kumamoto (Kumamoto)Toyo Rubber Chip Co., Ltd.
Samukawa-cho, Koza-gun(Kanagawa)Port of Tagonoura (Shizuoka)

Nitto Kako Co., Ltd.

Port of Shimizu (Shizuoka)

Fujinomiya (Shizuoka)

Hamamatsu (Shizuoka)

Fuji Eco Cycle Co., Ltd.
ECONECOL Inc.
Shizuoka (Shizuoka)

ECONECOL Inc.

ENVIPRO HOLDINGS Inc.
ECONECOL Inc.
NEWSCON Inc.
ASTOCO Inc.
VOLTA Inc.
Fuji (Shizuoka)

ENVIPRO HOLDINGS Inc.
VOLTA Inc.
ECONECOL Inc.

Port of Toyohashi (Aichi)
Tobishima Yard (Aichi)

Port of Kinuura (Aichi)

4. Data Section

ENVIPRO Group Sustainability Report 2023

47

Locations (Overseas)
Sales sites for recycled resources

UK

Business sites for used cars

Vietnam

NEWSCON UK Representative Office

Netherlands
NEWSCON Netherlands Branch

NEWSCON Vietnam Representative OfficeChile
3WM Chile Import Export Limitada

Overseas locations

4

Trading countries664. Data Section

ENVIPRO Group Sustainability Report 2023

48

Financial and Non-Financial Data
Key Financial Data
For the Fiscal Year

Units

FY06/19

FY06/20

FY06/21

FY06/22

FY06/23

Net sales

Millions of yen

36,33633,87940,93357,31949,189Financial Indicators
Return on invested capital (ROIC)

%

4.6

3.2

8.8

13.9

5.5

Ordinary profit

Millions of yen

1,141

934

2,508

4,166

1,901

Return on equity (ROE)

%

7.1

5.3

12.1

21.6

7.7

Profit attributable to owners of parent

Millions of yen

787

602

1,491

3,111

1,236

Net profit margin

%

2.2

1.8

3.6

5.4

2.5

Marginal profit

Millions of yen

6,681

6,632

8,023

9,968

8,744

Total asset turnover

Times

1.8

1.5

1.6

2.1

1.6

Net fixed costs*1

Millions of yen

5,786

5,821

5,895

6,325

7,364

Financial leverage

Times

1.9

2.0

2.1

1.9

1.9

EBITDA*2

Millions of yen

14,827

13,893

28,68640,42924,757

Equity ratio

%

56.7

45.0

48.8

54.6

48.6

Times

0.6

1.5

0.8

0.6

0.6

%

64.8

65.3

51.8

47.6

45.8

Price-earnings ratio (PER)

Times

11.3

14.2

12.1

7.5

13.3

Price-book ratio (PBR)

Times

0.8

0.7

1.4

1.5

1.0

Units

Capital investment

Millions of yen

1,416

1,519

650

1,610

4,648

D/E ratio

Cash flows from operating activities

Millions of yen

(87)

2,632

(252)

3,873

2,332

Overseas sales ratio

Cash flows from investing activities

Millions of yen(601)(1,001)(15)(1,404)(3,838)Cash flows from financing activities

Millions of yen(1,440)5,897(2,866)

(765)

(92)

Millions of yen

19,75925,913

26,54828,96333,686

Net assets

Millions of yen

11,562

12,012

13,333

16,21916,825

FY06/20

FY06/21

FY06/22

FY06/23

Other

As of Year-End
Total assets

FY06/19

Per-Share Information*3
Profit (EPS)

Yen

26.5

20.5

50.6

105.2

41.7

Net assets (BPS)

Yen

382.4

395.8

428.9

533.0

551.7

Dividends

Yen

8.0

5.0

12.5

25.0

14.0

Dividend payout ratio

%

30.2

24.4

24.7

23.8

33.6

*1 Net fixed costs = fixed costs + Share of profit of entities accounted for using equity method*2 EBITDA = operating profit + depreciation + amotization of goodwill*3 The company conducted a two-for-one split of common stock with April 20, 2022 as the effective date. Per-share information is calculated as if the stock split
had occurred at the start of the fiscal year ended June 2019.

Non-Financial Data
Human Resources and Occupational Safety Data

Units

FY06/19Men

FY06/20
Women

Men

FY06/21
Women

Men

FY06/22
Women

Men

FY06/23
Women

Men

Women

Regular employees

People

344

74

356

88

377

93

393

105

509

Number of managerial posts

People

53

4

62

4

71

5

73

6

74

Percentage of female managers%

Average age

Years

Average number of years of continuous service
Retention rate

-

7.0
38.0

6.1
35.9

7 years, 1 month

4 years, 3 months

38.6

36.0

7 years, 4 months

89.6

%

6.6
5 years, 0 months

38.9

37.1

7 years, 2 months

89.7

7.6
5 years, 2 months

39.1

91.4

8
9.8

37.0

7 years, 3 months

123

5 years, 2 months

42.4

38.8

8 years, 2 months

88.3

6 years, 4 months
89.7

Number of new recruits

People

3

3

4

2

7

0

11

6

3

Number of people taking childcare leave

People

0

5

0

6

1

7

2

3

1

1

Rate of people taking childcare leave

%

0

100

0

100

6

100

17

100

8

100

4

0

2

0

4

0

3

0

Number of people working shorter hours due to childcare People
Employment rate of people with disabilities

0

1

1

%

3.6

4.1

4.3

3.8

4.1

Number of accidents

Instances

68

63

57

62

72

Number of industrial accidents

Instances

26

13

13

14

12

Inquiries:

ENVIPRO HOLDINGS Inc.
Corporate Planning Department87-1 Tanakacho, Fujinomiya-shi, Shizuoka 418-0075, JAPANTEL: +81-544-21-3161
URL: https://www.envipro.jp/en/

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