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 forPeople 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 ConsultingBusiness

27 ESG Initiatives
28 Environment
34 Social
34 Special FeatureDiscussion

42Governance

45 Data Section45 Company Profile
46 Locations
48 Financial andNon-Financial Data

Editorial Policy
This sustainability report is issued by ENVIPROHOLDINGS Inc. The report describes the corporate philosophy of theENVIPRO 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.

4ENVIPRO 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 20002010

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 theHOLDINGS 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. ofEnd-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%%

1.01.020222022

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
4.02022 ■ECONECOL Inc. absorbed Fujimi BMS Co., Ltd. (currently2023 ■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 recyclingbusiness, 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. and2022
2022

2023
2023

2024
2024

Forecast
ForecastThe 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.

20122013

2014

2015

20162017

20182019

2020

2021

2022

2023

2024

Forecast