Contents / Editorial policy

Company profile

Top Message

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

Business foundation / Growth foundation

Corporate governanceWe believe that corporate governance is an important businessfoundation as well as a precondition to strongly promoting goal
achievements. To promptly respond to changes in the economic
environment, we strive to implement both prompt decision-making
along with efficient and transparent management, and tocontinuously improve our corporate value. To this end, we will keep
evolving to verify and operate the management and internal control
systems, and enhance their effectiveness.

Sustainability Committee
In FY2018, we re-verified relations between our business activities
and social issues, and, subsequently, developed a “Sustainability
Strategy” as a strategy to realize the sustainable development ofsociety and our group concurrently. At the same time, we started theoperation of a sustainability committee on an exploratory basis inorder to flexibly and actively discuss and examine the progress andfuture direction of the strategy from a long-term point of view.
The sustainability committee is composed of the full-time directors
and some executive officers of ENVIPRO HOLDINGS Inc. and isconvened once a month. Based on the strategy, the committee
discusses and examines the potential of new businesses, theestablishment of business/growth foundation and synergies across thegroup. Once opinions about the direction and specific plans areconsolidated, they are deliberated at the meeting of the Board of
Directors, etc.

Corporate governance system
General Meeting of Shareholders
Appointment andRemuneration
Committee

Board of Directors

Audit etc. Committee

Internal Control
Committee

Representative Director

Internal Audit
Department

Compliance
Committee
Environmental Safety
Committee
Information Security
Committee

Risk Management Committee

Management Committee

Departments/
Group Companies● Internal Control Committee
The Committee is composed of four subcommittees (Compliance,
Environmental Safety, Information Security, and Risk Management).
It identifies risks, develops measures, and establishes and operates aninternal control system across the group including the organization ofawareness-raising activities.

● Management Committee
The Committee makes decisions on important matters in relation
to the execution of our businesses and the timely disclosure of
information.

● Appointment and Remuneration Committee
The Committee is composed of a total of five members: one
representative director, three outside board members who are
independent officers, and one advisor. It holds preliminary
deliberations on any nomination of candidacy for director (except formembers of the Audit etc. Committee), remunerations, etc. as anadvisory body to the Board of Directors.

Introduction of segments and a scheme to makeofficers responsible for respective group companies
In the past, our business report described all activities under the
singular segment of the “Resource Recycling Business.” However, inorder to develop our implementation strategies by segment and to
facilitate prompt management decision-making in response to
drastically changing economic environment, we have introduced
multiple segments since June 2019: “Resource Circulation Business,”“Global Resource Circulation Business,” and “Used-cars-related
Business”; and “Environmental Management Consulting Business”
and “Welfare Service Business for Persons with Disabilities” underother businesses (refer to page 9). Simultaneously, we introduced a
new scheme whereby the officers of ENVIPRO HOLDINGS Inc. aremade responsible for their respective consolidated subsidiaries inorder to enhance the collaboration between ENVIPRO andsubsidiaries, thereby strengthening the system to promote ourbusinesses. In the future, we will strive to establish the foundations
that allow us to grow continuously. To this end, we will promote thedevolution of power, prompt decision-making, and transparent
management with good governance.

Nurturing corporate culture
We believe that firmly establishing business objectives and values ascorporate culture, and making everyday business activities consistent
with these objectives and values creates the most effective form ofgovernance. They are also essential activities for sustainableenhancement of corporate value. We distribute a management plan to
our employees that clearly describes the corporate philosophy, values,and code of conduct, aiming at nurturing corporate culture. Adopting
the management plan in business activities, we will spread thecorporate philosophy across our organizations and nurture a corporate
culture, thereby establishing the foundations that enable long-termsustainable growth.
Sustainability Report 201931

Contents / Editorial policy

Company profile

Top Message

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

Business foundation / Growth foundation

Human resource development

Self-reliant and well-disciplined organization, thetype of person we want to be

Recruitment of the first batch of new graduates(Scheduled to join in April 2021)

Interview

Based on our corporate philosophy, we aim to create a self-reliant
organization that allows every employee to be the manager of theirown work. Although seemingly contradictory, the organization
should also be well-disciplined. To this end, we have defined the“type of person we want to be” as one of the basic concepts thatshould be applied to human resource development. With our aim todevelop human resources based on this concept, we have beenworking to reflect the concept during the recruitment process,internal training, employee evaluations, employee positioning, etc.

We have been primarily undertaking mid-career employment.
However, we have decided to recruit not only career people but also
new graduates because we consider it important to recruit a diverse
range of people to enhance corporate value in the medium- andlong-term. By recruiting new graduates, we will be able to pass on
the corporate culture and invigorate the organization in addition to
optimizing the age composition of our group. We believe that totrain new employees to become leaders or key personnel in the
future will contribute the most to creating the business foundations
that enable us to grow in the medium- and long-term.

Attending the business school

Type of person
we want to be
1. Value
Person who feels empathy for the corporate philosophy (values),
and is sincere and not arrogant
2. Proactive
Person who can think independently, judge on their own
volition, and take action responsibly
Person who can be proactively engaged in enhancing theexpertise in their work
3. Change
Person who can willingly put aside their past experiences andvalues with the attitude of positively embracing change
4. Speed
Person who can promptly decide and act
5. Challenge
Person who can take up challenges, confronting difficult
situations and new things.
6. Teamwork
Person who can produce a greater output by helping others,
getting the best out of others, and lending a hand to others
7. Diversity
Person who can fully demonstrate their own uniqueness, while
accepting the characters and ideas of different people

ENVIPRO business school
We operate the “ENVIPRO Business School” as a business schoolof the group. It’s aimed at improving the skills and expertise that
employees need to carry out their work.
The school offers original training programs every year, targeting
various personnel in senior management positions and job
categories. In FY2018, it ran three courses, namely “NextGeneration Entrepreneurs,” “Managers,” and “Sales
Representatives.” The “Next-Generation Entrepreneurs” and“Managers” courses offered a total of 9 classes and the “Sales
Representatives” course a total of 4 classes. In total, 30 employees
attended.
Training topics included the ability to persuade/express, marketing
philosophy, finance/management accounting, and human resource
development which corresponded to the requirements of respective
job categories. Especially, in the “Next-Generation Entrepreneurs”
course, lecturers who were specialized in their respective fields
conducted training which reflected actual work, such as thedevelopment of next year’s business plan based on financial
statements and the management policy of the company.
The training was attended by employees from different companies
across our group, which helps to nurture a sense of togetherness andto promote collaboration throughout the group.

Shigeto Komatsu, Representative Director/President, SYN ECO Inc.

I attended the “Managers” course in FY2016
and the “Next-Generation Entrepreneurs”
course in FY2018.
I remember I felt a great sense ofcommitment and at the same time felt
extremely tense because I was taking part in the training as therepresentative of my company with many other employees fromdifferent companies, even though we all belonged to the samegroup. I have developed good relationships with the trainees I met
on the training, which has helped me a lot in my work.
During the training I gained knowledge and a way of thinking thatcannot be acquired in day-to-day work. It gave me an opportunity torevisit my attitude to work and to life.

Attending a lecture

Sustainability Report 201932

Contents / Editorial policy

Company profile

Top Message

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

Business foundation / Growth foundation

Growth / Development strategy

Endorsement of the TCFD recommendations
Our group announced its support for the
Task Force on Climate-related Financial
Disclosures (TCFD) recommendations in
May 2019.
The TCFD is a task force established under the Financial Stability
Board (FSB) based on a request from the Ministers of Finance and theEnhancement of work efficiency by introducing
RPA*
In recent years, work-style reform programs have been promoted
and the enhancement of work efficiency has been given a highpriority. If simple tasks are automated, it will become possible forworkers to be engaged in tasks that can be only done by humans,
using the time saved.

Our group has launched the operation of RPA in a survey of new
business partners. RPA is used to collect information needed todecide if a trade connection should be established with a concerned
company. As a result, the workload involved in collecting
information for a company survey has been reduced.
* RPA: Robotic Process Automation
A technology to automate simple tasks and routine tasks.

Governors of Central Banks of the G20. It is a private sector-led
initiative, associated with the disclosure of climate-related financial
information. It has announced recommendations (the TCFD

Interview Toshihiro Koyama, Director, Laboratory, ENVIPRO HOLDINGS Inc.

recommendations) that are aimed at companies to understand anddisclose their financial impacts of climate-related risks andQ2. What are the challenges and prospects
for the laboratory in the future?

opportunities.
According to the TCFD recommendations, we will analyze the risks
and opportunities of climate change on our businesses to integratethem into our business strategies and promote information disclosure
on governance, strategy, risk management, and metrics and targets.

Establishment of a laboratory
To promote resource circulation under the circular economy, we needto have advanced technologies to recycle waste and materials. The
development of core technologies through the assessment of recycling
technologies, analysis of recycled raw materials, accumulation ofdata, and acquisition of technical know-how is essential for thesustainable growth of our group in the future. Cognizant of this, theresearch department of ECONECOL Inc. was reorganized as anorganization directly under ENVIPRO HOLDINGS last year. It now
leads research and development as a laboratory.

Q1. Are there any research themes that are typical for ENVIPRO?
We are currently focusing on launching a business under VOLTA
Inc. which will recover valuable metals, such as cobalt and nickel,
from lithium-ion rechargeable batteries collected from mobile
phones and automobiles. We are jointly engaged with VOLTA Inc.
the establishment of efficient plant operating conditions toconcentrate cobalt, through the introduction of facilities in a metal
recovery plant, planning trial runs and assessments of prototypes. In
addition, we have been continuously engaged in the analysis ofmaterials such as gold and silver sediment sludge assisting
ECONECOL Inc.

We have seconded our researcher to the National Institute forEnvironmental Studies for joint research to develop methods to melt
the metals contained in riddling ash, aiming to grow this field as a
new core business of our group. It is becoming clear that the metalelements themselves determine the types of acid suitable to melt
them and the treatment required after melting. After the secondment
period is completed, we will further work on the commercializationof the research outcome in order to develop this into the next key
business of our company.

Sustainability Report 201933

Contents / Editorial policy

Company profile

Top Message

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

Business foundation / Growth foundation

Challenge to contribute to create a sustainable society

In FY2018, we, the ENVIPRO Group, re-verified relations between ourbusiness activities and social issues, and, subsequently, developed a“Sustainability Strategy” as a growth strategy to realize the sustainable
development of society and our group concurrently.
Until we were listed on the Second Section of the Tokyo Stock
Exchange in September 2013, we prioritized the establishment of ourbusiness foundations. After being listed, we planted a variety of seeds
for future growth with the objective of promoting the diversification of
our businesses. Later, we reviewed the business areas we had
expanded, and decided which businesses to primarily apply our
resources.
Based on this decision, we will further promote the new businesses that
we have already launched and accelerate investments in new growthfields. We will engage ourselves in the development of a sustainable
society as a company which is relied upon by our stakeholders.

Business strategy (expansion of existing businesses,
strengthening of foundations, erecting new pillars)

Synergy between group companies

To realize the above-mentioned policies, we will principally
distribute profits according to the following proportions: 30% forinvestment in growth fields, 10% for research and development,
20-30% for dividends to return to shareholders, 30-40% for internal
reserves.

Making the best use of the human resources, assets, funds,
technologies, and information that the group owns, we will support
the development of the whole group, thereby maximizing the synergy
between our group companies, and expanding and strengthening new
growth foundations across the group.

Profit distribution
Investment in growth fields

30％

Research and development

10％

Return to shareholders

20～30％

Internal reserves

30～40％

Stakeholders
We will strive to win the trust of our stakeholders through ourbusiness activities as well as our communication with them. To thisend, we will regard any concerns expressed by the various
stakeholders (customers, shareholders, business partners, employees,
local communities, administrative offices/industry associations) as
challenges that will lead us to strengthen the business foundation of
our group necessary to promote business activities and sustainablegrowth.

Enhancing corporate value by expanding businesses■ Investment in growth fields■ Actual corporate value

New businesses

Corporate philosophy
Creative Company
Circular Company
Company pursuing virtue

Waste plastics

Waste incineration ash

Corporate value

Lithium-ion batteries

Existing businesses

2020

Resource Circulation, Global Resource Circulation,
Used-cars-related, Environment Management Consulting,Welfare Service for Persons with Disabilities

Synergy between group companies

We will strengthen our growth foundation through developing humanresources, improving corporate governance, brand development andothers, while enhancing our financial stability by continuously
generating profits through expanding existing businesses, technologicalinnovation, improving productivity, etc. Simultaneously, we will erect
new pillars of growth by investing in growth fields and collaboratingwith other companies, thereby enhancing our corporate value.

Profit distribution

Until a business is stabilized, theincrease in corporate value will slow
down because it cannot match theinitial investment. Green areas indicate
a negative balance caused by thiscondition.

2030
Sustainability Report 201934