Make a Circle of Joy

Sustainability
Report2022

Sustainability Report 2022

Make a Circle of Joy
As a leading company in the resource recycling business, we aim to contribute to create asustainable society. We collect and recycle unneeded items that can be reborn as resources.
This circulation supports someone’s social life and leads to joy of somebody.
This practice brings us joy as well, and that force drives us toward the future.
Our mission lies in continuing to fulfill our responsibilities and in consistently pursuing
the resource recycling business, which has been our core business since our founding.
As a group of leading companies in resource recycling, the ENVIPRO Group is a needed presence.
We are convinced that our continued growth will lead to the achievement of a sustainable society.
Together with all our stakeholders, we will continue to make a circle of joy.
That is the hope of the ENVIPRO Group, and our promise to the future.

01

Sustainability Report 2022

Contents

Mission Statement

Contribute to Create a Sustainable Society
The ENVIPRO Group’s mission is“Contribute to crea te a sustainable society.”
The Group contributes to society through its business,
which defines its reason for being.

01

Corporate Vision

02

Contents, Mission Statement

03

Corporate Philosophy, Editorial Policy

04

Message from the President

05

Sustainability Strategy

05

Top Management Interview

09
10

Identifying Materiality Items (Priority Issues) to Realize our Mission
The Value Creation Process

11

Initiatives to Achieve the SDGs

12
12
13
14
15
21
25
26
27

Business
Business Overview
Highlights by Segment
Highlights
Resource Circulation Business
Global Trading Business
Lithium-ion Battery Recycling Business
Welfare Service Business for People with Disabilities
Environmental Management Consulting Business

29
29
34
41

ESG Initiatives
Environment
SocialGovernance

44

Financial and Company Data

02

Sustainability Report 2022

Corporate Philosophy

Creative Company
Engage in the ongoing creation of businesses that society needs

Engage in everyday work in the spirit
with which the company was established

The Key Values of the ENVIPRO Group,and Its Corporate DNA
Around 2000, the business environment began to undergo majorchanges. A growing awareness of a circular economy society andCreate new businesses in the spirit of the founderfor generations to comeenvironmental issues spurred an understanding about the need

Every employee to exert efforts to become
the leading player of a business that suits them

regulations. The ENVIPRO Group is growing at an increasing rate.

for recycling and the establishment of various laws andWe are changing rapidly, and our employees is growing andCircular Company

beginning to expand across regions.

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

though the company was beginning to develop well, I rediscovered

Help each other and lend a hand to others
to make your work more pleasantbeen missing. The tree grows, and the trunk grows, and the roots

Around that time, I began to feel a vague sense of anxiety. Even
what I had been searching for so long–that something that had

Use every material repeatedly, preserving their value
for as long as possiblethat support it need to grow bigger.

Share the profit and joy with the people you live withstrong sense that we lacked a solid philosophy and principles that

Company Pursing Virtue
Pursue the virtue of companies and people, in perpetuity

In 2004, we established our corporate philosophy, rooted in awould remain unshaken by surface changes. We spent about ayear weaving together the founder’s life philosophy, principles,
and the habit of saying, the life philosophy and thoughts of the

Don’t choose the easy path but choose the path
which serves others

executives, and other ideas inherent in the Company and making

Do what others don’t do by taking advantage ofyour distinctive qualities

This is how we have developed our corporate philosophy, ourBe grateful for your life and don’t be arrogant

remain intact no matter how much the environment around us* Supervised by Yoshiharu Shimizu, Mirai Design Institute, Enishiya
Established on March 20, 2004

them all explicit.
“most valuable idea.” It serves as our code of conduct and willchanges. We anticipate a permanence that will last for the next
2,000 years.

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

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

Reporting Period
July 2021 to June 2022 (The report covers some activities and plans outside this period.)03

Sustainability Report 2022

Message from the President

The world is making major moves to becomecarbon neutral by 2050.
The formation of a circular economy society has been increasingly

The third is “investment in human resources to promote business activities.”

highlighted as a means of achieving carbon neutrality. A concrete andOver the medium term, we plan to cultivate 100 business promoters. Thiseffective means to achieve this is to implement a circular economy within

will enhance the sharing of our corporate philosophy, which acts as the rootssociety.

that support the company. Through hiring, training, and retention, we plan to

To this end, we have identified three material items (priority issues). The first

cultivate executives, specialists, and generalists.

is “increasing demand for green materials in the supply chain.” Specifically,

The core of our business is to solve problems that will help realize a circular

this refers to “increased demand for ferrous scrap due to expansion of

economy society. Accordingly, our company’s growth and its contribution toelectric furnaces,” “increased demand for nonferrous metals and minor

society move in lockstep. As social contribution is an extension of my own

metals in line with electrification,” and “promotion of advanced resource

business motivations, I am committed to the growth of the ENVIPRO Group.

recycling for waste plastics.”
The second is “reducing labor required in the production process, promotionof data utilization in business activities.” More efficient production that
requires less labor is associated with lower greenhouse gases (GHGs). In
addition, in the circular economy, it is necessary to accurately grasp thecirculation of objects through the use of data.

Of course, we will work with our employees to enjoy this challenge to thefullest.

Sekkyoku Ikkan(means “always be positive”,
the word of Tempu Nakamura)

Forward, MYWAY forward.

Tomikazu Sano

President, Representative Director04Sustainability Strategy

Business

ESG Initiatives

Financial and Company Data

Sustainability Report 2022

Top Management Interview

Our strengths have emerged out of a single desire:to make people happy.
Our Strengths

was around the time of the Plaza Accord, which led to a recession and

Global Trading Business has grown accordingly.

My father founded this company. By following his example, I havea strong yen. Since that time, we have overcome the effects of various

We developed our second strength in the 1990s when we installed aworked with the sole intention of making him, and by extension, others,

economic waves.

shredder capable of handling large items, such as scrapped cars andhappy. In 1985, my father passed away, and I became president. That

Along the course of this history, the company has developed several

appliances. At the time, it was an investment so large that somestrengths.

considered it reckless. However, this gave us the opportunity to acquire

The first is that we have a trading department that allows us to deal

the advanced shredding and separation technology that would serve as

specifically with other countries. For the 40 years after World War II,

the foundation for our current business expansion. In addition to

Japan faced a shortage of ferrous scrap. In the 1990s, however, steel

separation using magnetic force, wind force, specific gravity, and eddy

production reached a plateau and we gradually began to experience acurrents, we have recently been using separation technology like metal

surplus of ferrous scrap. As a result, even when we sourced ferrous

detectors based on various sensors. The plants used in our industry

scrap, there was no market for it in Japan. Because our company was

are mostly custom-made and fabrication is outsourced. We design andfar away from steelmakers’ locations, we could only sell our products

fabricate plants ourselves instead, leveraging our best on-sitethrough trading companies, which presented us with a major sales

expertise. Our plants strongly reflect our own capabilities, allowing us

challenge. We had the idea that we might be able to export our ferrous

to separate waste and other materials more precisely and thoroughly.

scrap to other countries, so we set up a trading department. Our first

This approach increases the value of the items we process, so we cansuccessful exports were to South Korea, and this marked a first for

sell them at higher prices. This, in turn, makes our sourcing more

Japan. Developing our overseas business made us more competitivecompetitive. In the future, we plan to enter the world of chemical

on prices, and we began sourcing ferrous scrap from companies that

separation at the molecular level: extracting nickel and cobalt from thehad previously been our rivals. This evolution brought us newconcentrated sludge of minor metals collected by physical shredding

functionality and spurred our business expansion from the city ofand the separation of lithium-ion batteries.

Fujinomiya and Shizuoka Prefecture out to the rest of the country. Our

Our third strength comes from the fact that we have an environmental

Tomikazu Sano
President,
Representative Director05

Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Achieving Low-Carbon Processes: QCD + C (Carbon Neutrality).
consulting company that enables us to make concrete proposals.

element of C (carbon neutrality) to the manufacturing process. We canpermeation of our corporate philosophy. The specific strengths that I

Bright Innovation, founded in 2016, started as a consulting firm to

make concrete proposals because we have processing technologies

have mentioned must evolve and develop with the times. We will

support CDP responses and the planning of decarbonization strategy.

including those needed for physical plants. Going forward, we believe

further hone and entrench our existing strengths. We will continue

More recently, the company has expanded into consulting related to

we will be able to differentiate ourselves through our consulting

working to evolve and turn areas of technologies and expertise that are

the circular economy. Conventionally, the elements essential to thefunction, by developing and combining a traceability system for the

not yet strengths for us into future areas of strength, through corporate

manufacturing industry have been expressed by the initialism QCD

circular economy.

alliances and M&A. In this way, I believe that we can find many more(quality, cost, and delivery times). We advocate QCDC, which adds the

Our greatest strength is our corporate culture, which is based on theopportunities in our area of business.

Our Role in the Overall Circular Supply Chain
RecyclingEN

VIPRO Group

Re
us

e

Carbon neutrality

Recreating
resource value

Eliminating CO2 emissions
in the resource
recycling process

C o ll e

Steel

LIBs

Su

n

5 Supply of green materials

Reductionof wastec ti o

4 Remanufacturing

Production ofgreen materialsly

3 Recycling

Intermediate
processingpp

Above-groundresources(waste)

Re
ma
ing
tur
fac
nu

2 ReuseGreen materials

Recycling

1 Recovery of above-groundresources (waste)

Waste disposal

Us

Remanufacturinge

S alesSup

M a n u f a c t u ri n g

ur
Proc

ply chain

em

en

t

Plastics

RubberConversion torecycled
raw materials

Green product

Conversion torecycled material

Reproduction(Materials that meet
performance requirements)(Products made fromrecycled materials)

Intermediate
processing

Recycled
raw materials

Conversion torecycled materials

Reproduction

Processing
methodShredding

Separation

Steelmaking

Rolling

Material

Shredded mixture

Ferrous scrap

Semifinished steel

Steel products

Processing
methodShredding ∙ separation

Advanced separation ∙concentration

Material

Shredded mixture

Black mass

Smelting and otherchemical processing
Cobalt sulfate/nickel sulfate precursor

Processing
methodShredding ∙ separation

Pelletization

Resin compounds

Forming

Resin material pellets

Formed resin products

Assembly
Battery cells

Material

Separated plastics

Resin raw material
pellets

Processing
methodShredding

ShreddingDesulfurization ∙ extrusion

Forming

Material

Shredded EPDM products

EPDM chips

Recycled rubber sheets

Formed rubber materials

06

Sustainability Strategy

Business edium-Term Management Plan
M
(Sustainability Strategy)
Financial Targets of the Medium-Term Management Plan
(Sustainability Strategy)

ESG Initiatives

Financial and Company Data

Sustainability Report 2022

Resource Circulation Businessfuture, we plan to add our own technologies to overseas locations to

In the Resource Circulation Business, we will continue to pursue

establish resource processing bases, not just distribution bases.

initiatives for further growth while building on our existing business.
The company’s activities include the collection of gold, silver, andLithium-ion Battery Recycling Businesscopper sediment sludge from incineration ash, the recycling ofWe are promoting the Lithium-ion Battery Recycling Business as aincineration ash as a resource, cleaning and dismantling work broadly

strategic business to drive corporate growth. We believe this businessacross Japan, and the advanced recycling of plastics. In particular, I

will truly come into its own after 2030. We will start operating athink of the collection of gold, silver, and copper sediment sludge fromhydrometallurgical plant in 2025. By 2027, we intend to increase theincineration ash as my “lifework.” It is said that each ton of

number of plants producing black mass, the raw material for theincineration ash contains a gram of gold. It seems to me a waste tohydrometallurgical plant, to four (in Japan and overseas) and establish

To realize a decarbonized society by 2050, we will create QCDC

think that rather than being extracted, such gold might be recycled

a system for collection and production. VOLTA is in charge of thismanufacturing processes, promote RE100, and reduce CO2 emissions

into cement or disposed of in landfills. I also believe we could see

business. In 2020, we made VOLTA independent from the Resourcefrom our plants. According to the Ellen MacArthur Foundation, a shifttechnological breakthroughs in plastics recycling. Without the addition

Circulation Business because we believed this would facilitate theto renewable energy alone can only address 55% of the world’s CO2of technology, municipal waste is just that: waste. But I believe waste

emissions, but the remaining 45% can be addressed by a circular

plastics will become an important resource once chemical recycling

economy. The full utilization of recycled resources can thus help

technology becomes an established part of the social system.

(Fiscal year ending June 2027)

Net sales ¥Ordinary
profitROE

75 billion¥ 5 billion
13 %reduce CO2 emissions. In addition to the conventional value of using
recycled resources, their environmental value has begun to increase.

Global Trading BusinessFor example, using ferrous scrap for steelmaking in electric furnaces

Overseas sales make up the bulk of operations in the Global Trading

is said to emit only around one-fourth the CO 2 compared toBusiness, but we believe it is time for a model change. I expect thatsteelmaking from iron ore in blast furnaces. In other words, recycled

Japanese demand for ferrous scrap will increase due to the newmaterials such as ferrous scrap are low-carbon raw materials.

construction of large electric furnaces by major steel makers. Accordingly,

We joined the RE100 initiative in 2018. We are already operating withthe amount of ferrous scrap exported from Japan will decrease. Given

97% renewable energy, and we will continue to supply low-carbon

this environment, over the medium term we aim to increase ourbase fuel by reducing the carbon footprint of the production process

handling volume from the current 540,000 tons to 1,000,000 tons.

itself throughout Scope 1, 2, and 3. Our financial targets for the fiscal

We will continue to expand our number of domestic collection points.

year ending June 2027 are net sales of ¥75 billion, ordinary profit of

In addition, we will focus on increasing our overseas sales and the¥5 billion, and ROE of 13%.

number of products we handle, such as through trilateral trade. In the07

Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Build a “platform” filled with good quality energy where all employees work energetically.
alliances and other collaboration necessary to ensure development

Capital Investment

industry, the on-site working environment is hard. Thinking of ourhuman resource strategy from a long-term perspective, it is important

speed and secure management resources. In this area, we are
Investment in Existing Businesses

combining caution with boldness.

• Expansion of plants• Introduction of new technology,
promotion of DX• Environmental improvement,
strengthening of safety measures

Other Business
In Other Business, we will further strengthen our Environmental
Management Consulting Business as a contact point for the creation ofsocial systems. In addition, Welfare Service Business for People with¥20

billionDisabilities does not have a large financial impact, but it plays animportant role in shaping the corporate culture. In the future, we will

Recycling of waste incineration ash
after collection of gold, silver,
and copper sediment sludge

ew

n
er

s

bu

Oth

Profit distribution

Corporate value

s

s
ine

Growth investments
30%
Research and development
10%
Return to shareholders 20% to 30%
Internal reserves
30% to 40%

g
clin
recy
raft
c
r
i
lasticsA
aste pg of w
cyclin

al re
hemic

C

on
Lithium-i

ecycling

Battery R• Lithium-ion battery recycling business• Advanced plastic recycling business• Secure human resources andintellectual property

Investment in M&A etc.
• Accelerating growth• Synergy creation• Alliance with growing companies

focus our business on cooperation between agriculture and welfare.

Optimize business portfolio by deepening our
involvement in or withdrawing from existing businesses,
aggressively investing in growth areas andsearching new businesses

Investment in Growth Businesses

to nurture people. For several years now, we have been offering abusiness school for the next generation of management. Over the
next five years, we will develop 100 business promoters. We plan toestablish several companies in the future, and I would like thesepeople to experience being the president of a company. To ensure a
company’s future growth, I think it is necessary for people to haveemergent capabilities so they can grow by themselves and for them
to be in a field or organization where they can take the lead and act
with self-discipline. To this end, we will instill our corporate
philosophy, create a bright, open, and pleasure culture, and train
people with a sense of mutual trust, Hands-on learning, a shared

The company has made capital investment totaling around ¥6 billion

vision, a spirit of taking on challenges, wholehearted effort and heart

over the past five years. Now that profit has been rising, we plan tothat cherish people. Naturally, we will need to create an environment

increase this level. We plan to invest ¥20 billion over the next fivefor this.

years. We have already earmarked more than half this amount for new

In the wise words of Peter Drucker, whom I admire, “culture eatstechnologies and DX in existing businesses, investment in expansion

strategy for breakfast.”(including for safety measures), and for growth businesses such as

Above all, we will ensure

Lithium-ion Battery Recycling and advanced recycling of waste plastics.

our employees are well-

At this stage, we have no concrete plans for the remainder. My attitudeversed in our corporate

toward investing has been changing.

philosophy and culture,

5カ年目標

Creation of

100 Business
Promotors

Executives

and to use this as the
Resource Circulation, Global Trading, Environmental Management
Consulting, Welfare Services For People With Disabilities

2022

2030

Human Resource Strategy

driving force for ourI believe that our first priority is to improve working conditions; in thishuman resources strategy.

Specialists

Generalists

08

Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Identifying Materiality Items (Priority Issues) to Realize our Mission
Corporate
Philosophy“Creative Company” “Circular Company”“Company Pursing Virtue”

Societal Trends Surrounding the ENVIPRO GroupThe key values of the ENVIPRO Group, and its corporate DNA (no timeline)

MissionThe corporate
value that weseeksLong-term
TrendsGX

GREEN
TRANSFORMATIONDXDIGITAL
TRANSFORMATION“Contribute to Create a Sustainable Society”
Demand for the establishment of a green value
chain

The ENVIPRO Group’s significance in the world, and its purpose and aspirations on a defined timeline(the years until 2050)
To become a company that has a valued role in society by increasing economic value, environmental
value, and social value and strengthening governance to sustain them.
In addition, to build a “platform” filled with good quality energy where all employees work
energetically toward this goal.

Medium- andShort-TermTrendsGrowing international competition for resources
Surfacing social issues related to waste plastics
Data utilization in non-IT businesses
Increase in utilization of IoT, AI, Robotization
Increasing competition for human resources

Identifying Materiality (Priority Issues)
MATERIALITY

01

Increasing demand for green
materials in the supply chain
Increasing demand for ferrous scrap due to building ofadditional electric furnaces
2 Increasing demand for nonferrous metals and minor metals
due to electrification
3 Promotion of advanced resource circulation of waste plastics
1

MATERIALITY

02

Reducing labor required in the
production process,promotion of data utilization inbusiness activities

MATERIALITY

03

Investment in human resources topromote business activities

09

Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

The Value Creation Process

Mission Statement

Make a Circle of Joy Your Partner in Circular Economy

Contribute to Create a Sustainable Society

The ENVIPRO Group’s significance in the world, and its purpose and aspirations until 2050

Business Model

Materiality (Priority Issues)
Increasing demand for green
P9materials in the supply chain
Reducing labor required in the
production process, promotion of datautilization in business activities
Investment in human resources topromote business activities

Strategy Concept

Sustainability Strategy Targets

Challenging ourselves to resolve issues toward realizing a“decarbonized society,” a “circular economy society,”
and a “distributed society”(Fiscal years ending June 2023 through 2027)

Business Concept

Financial Capital
Net sales

P6

Ordinary profit

Realization of concrete examples of a circular economy

P7¥75 billion

Strengths of the ENVIPRO Group
Corporate culture(Year ended June 2022)

Financial Capital
Total assets

Instill of the corporate philosophy¥28.9 billion

Equity ratio

Trading capabilities
Global sales force

54.6%

Inventiveness

Manufacturing CapitalGroup companies
Domestic plants
Shipping ports
Overseas locations

15
10
14
4

Productive capacity

Patents held
Human Capital
Employees (consolidated)

12
498

Natural Capital

Resource recovery rate 94.4%

Electric power from renewable sources 97.3%
Reduction in CO2 emissions 62.4%

Investment

Logistics capabilities

Getting things where they are needed¥20 billion• LIB recycling business• Introduction of
new technology• Promotion of DX• Environmental
improvement• M&A

Collection capability

Collection that is diligent and flexible

P12

Growth platform

P35

Business Partners

Etc.

Helping suppliers
managedecarbonization
through safe andsecure recycling

New technology development
Lithium-ion Battery
Recycling BusinessLaboratory expansion

Employees

Management platform

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

Development of

P37

Promotion of diversity

P39

100 business promoters

Welfare Service
Business for People
with Disabilities

Image for the organization:a disciplined group of autonomous individuals with emergent abilities

Corporate Philosophy

Local Community
Contributing to the
local community
through our business

Human Capital

Environmental
Management
Consulting BusinessHelping to create adecarbonized societyIntellectual Capital

Resource Circulation
Business
Global Trading
Business

NaturalEnvironment

13%

Manufacturing Capital

Unparalleled technical capabilities

A sales force that operates systematically

Safe and efficient production

Capital investment ¥1.6 billion
Intellectual Capital

Technological capabilities

Environmental
value

Economic value(Targets for fiscal year ending June 2027)

Sales capability

From idea to strategy

Social value¥5 billion

ROE

InputsValue Provided

P42

P3

Shareholders andInvestors

Natural Capital
RE100 by 2030

P37

Carbon neutral by 2050

Providing anenvironment where
diverse humanresources can workwith vigor andenthusiasm

P32

Enhancing shareholder
returns throughsustainable growth10Sustainability Strategy

Business

ESG Initiatives

Financial and Company Data

Sustainability Report 2022

Initiatives to Achieve the SDGs
The ENVIPRO Group’s Approach to the SDGs
Making Every Effort with Every Partner
As actions aimed at achieving the SDGs, we will advance collaboration
within the group, with companies in the supply chain, and withadministrative agencies, local communities, and citizens.
•Partnerships
Through participation in corporate groups and international initiatives, weare expanding partnerships aimed at achieving a sustainable society.
Japan Climate Leaders’ Partnership (JCLP)
RE100*1
CDP*2 Scoring Partner
Clean Ocean Material Alliance (CLOMA)*1 RE100: Means “100% Renewable Electricity.” An international initiative forcompanies that aim to procure 100% of the electricity required for theirbusiness operations from renewable energy sources.
*2 CDP: An international initiative for the disclosure of information on climatechange response

Contribution to
the Economy• No poverty• Technological innovation

3WM Co., Ltd. helps to reduce environmental impact and contributes tothe economic development of countries in need by distributing high-quality
used cars and other products to where they are needed in the world.

At the laboratories of ENVIPRO HOLDINGS Inc., we are working on thedevelopment of technology to collect the minor metals cobalt, nickel,
and lithium with high purity from waste lithium-ion batteries throughhydrometallurgy, and the enhancement of analysis accuracy, to contributeto the development of technology that will form the basis of a circular
economy and a decarbonized society.

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

• Energy• Consumption and production• Climate change• Life below water• Education • Gender
Contribution to •• HealthWorking environment • Equality• Community development
Society

Contribution to
the Environment

We prevent water and soil pollution and contamination by properly
managing scrap materials at our plants, which comply with safety andenvironmental standards. In addition, to prevent infectious diseases, theentire Group has established guidelines such as vaccination assistance,sterilization of common areas, and the wearing of masks.

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 businessactivities. In addition to switching to renewable energy for the electricity
used in our plants, we are installing solar panels on plant roofs andotherwise introducing renewable energy power generation equipment.

ASTOCO Inc. provides high-quality educational opportunities for people
with disabilities so that they can participate in society with confidence anda sense of purpose.

We contribute to the circulation of limited resources and the reduction ofwaste by engaging in the recycling business to extract precious metals
from metal scrap and waste, and the remanufacturing business to produce
recycled raw materials.

We have introduced systems for telecommuting and shortened working
hours for permanent employees, and provide an environment that lets
employees, including those raising children or performing family care,choose a working style that fits them best.

Under the goal we have set of achieving carbon neutrality by 2050, we
will work to reduce GHG emissions from our business activities. We
also contribute to the reduction of emissions across the supply chain
through our mainstay recycling and remanufacturing businesses. In May
2019, we publicly endorsed the Recommendations of the Task Force on
Climate-related Financial Disclosures (TCDF). We will identify and evaluate
opportunities and risks placed on our businesses by climate change,
integrate these into our business strategies, and engage in appropriate
information disclosure.

ENVIPRO HOLDINGS Inc. began recruiting new graduates in fiscal 2019. To
build upon our ongoing practice of employment of the physically challenged
we will offer worthy job opportunities for people of different backgrounds.
We thoroughly implement measures to prevent work accidents at ourplants to ensure 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 inrewarding work.

We contribute to community revitalization and the development of asustainable cities and communities through recycling and the creation of
employment, by collecting and recycling waste and discarded household
items and by hiring people with disabilities at its plant.

We contribute to the prevention of marine pollution stemming from plastics
by developing technologies to sort waste plastics for recycling into pellets
and by promoting the development of applications for recycled materials.

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Sustainability Strategy

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ESG Initiatives

Financial and Company Data

Sustainability Report 2022

Business Overview Working Together as a Group to Realize a Circular Economy
Reuse
Recycling
Remanufacturing

Resource Circulation BusinessWe work to use limited resources effectively andreduce waste by promoting the reuse, recycling,
and remanufacturing of waste and resources. We
also offer new value to the world by using waste to
manufacture recycled materials.
ECONECOL Inc.

Lithium-ion Battery
Recycling Business
By recycling lithium-ion and other rechargeable
batteries, we help to collect and make use oflimited resources, such as cobalt, nickel, andlithium. We aim to achieve a closed loop, battery
to battery.

Kuroda Recycle Co., Ltd.
VOLTA Inc.

SYN ECO Inc.
Toyo Rubber Chip Co., Ltd.

株式会社

東洋ゴムチップ

ARBIZ Corporation*
Fuji Eco Cycle Co., Ltd.**Affiliates accounted for under the equity method

Welfare Service Businessfor People with Disabilities
Environmental Management
Consulting Business

Other Business

Global Trading BusinessIn this business, we distribute internationally themetal scrap and other resources generated inJapan and other countries. We also move used
items, such as used cars and maintenance parts,
from Japan onto global markets.

In this segment, we are developing the Welfare
Service Business for People with Disabilities. Thisbusiness supports the independence of people
with disabilities, helping them to find work andin community life. In addition, our Environmental
Management Consulting Business helps companies
develop environmental strategies and plans for
reducing greenhouse gas emissions.
Welfare Service Business for People with Disabilities

ASTOCO Inc.
NEWSCON Inc.
3WM Co., Ltd.

Environmental Management Consulting Business

Bright Innovation Co., Ltd.

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Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Highlights by Segment
Resource Circulation BusinessResource Circulation Business

Global Trading Business
Lithium-ion Battery Recycling Business
Other BusinessNet
Netsalessales(left(leftaxis)
axis)

Global Trading Business

Ordinary
Ordinaryprofit
profit(right(rightaxis)
axis)

Net
Netsalessales(left(leftaxis)
axis)(Billions(Billionsofofyen)yen)(Billions(Billionsofofyen)
yen)

30.0
30.0

2.1%

6.0
6.0

Net
Netsalessales(left(leftaxis)
axis)

0.7%

25.0
25.0

Ordinary
Ordinaryprofit
profit(right(rightaxis)
axis)

31.3%

25.0
25.0
15.0
15.0

14.2
14.2
10.7
10.7

20.0
20.0
10.0
10.0

Sales composition

2.08
2.08

20.3
20.3

10.7
10.7 0.54
0.54

10.0
10.0
0.0
0.0

June
June2020
2020

5.0
5.0

2.75
2.75
2.75
2.75

14.2
14.2

15.0
15.0
5.0
5.0

2.08
2.08
June
June2021
2021

June
June20222022

June
June2021
2021

June
June2022
2022

0.54
0.54

0.0
0.0

65.9%

June
June2020
2020(Billions(Billionsofofyen)
yen)

6.0
6.0
4.0
4.0

60.0
60.0
40.0
40.0

5.0
5.0
3.0
3.0

50.0
50.0
30.0
30.0

4.0
4.0
2.0
2.0

40.0
40.0
20.0
20.0

3.0
3.0
1.0
1.0

30.0
30.0
10.0
10.0

2.0
2.0
0.0
0.0

20.0
20.0
0.0
0.0

1.0
1.0

10.0
10.0

0.0
0.0

0.0
0.0

Netsalessales(left(leftaxis)
axis)
Net

10.6%

2.7%

Ordinaryprofit
profit(right(rightaxis)
axis)
Ordinary
Lithium-ion Battery
Recycling
Business

Net
Netsalessales(left(leftaxis)
axis)

1.2
1.2

Ordinary
Ordinaryprofit
profit(right(rightaxis)
axis)(Billionsofofyen)yen)(Billions

1.0
1.0

1.34
1.34

0.8
0.8

(Billions(Billionsofofyen)
yen)

1.5
1.5
0.9
0.9

1.34
1.34

1.2
1.2
0.6
0.6

25.5%

Profit by segment

0.35
0.35

0.9
0.9
0.3
0.3
0.6
0.6
0.0
0.0

0.09
0.09

(0.12)(0.12)

0.47
0.47
0.47
0.47

(0.08)(0.08)
0.35
0.35

0.3
0.3

0.09
0.09
0.0
0.0

61.2%
ENVIPRO Group (results for the year ended June 2022)

31.0
31.0

(0.12)(0.12)
June
June2020
2020(0.08)(0.08)
June
June2021
2021

June
June20222022

June
June2020
2020

June
June2021
2021

June
June2022
2022

42.9
42.9

25.7
25.7
0.63
0.63

31.0
31.0

0.71
0.71

June
June20222022

June
June2020
2020

June
June2021
2021

June
June2022
2022

0.4
0.4
0.2
0.2

0.4
0.4
0.0
0.0

0.3
0.3
0.1
0.1

0.2
0.2
(0.2)
(0.2)

0.2
0.2
0.0
0.0

0.0
0.0

0.1
0.1

(0.2)
(0.2)

0.0
0.0

0.4
0.4

Ordinary
Ordinary
profitprofitBusiness(right(rightaxis)
axis)
WelfareServicefor People with Disabilities
Environmental Management Consulting Business

0.5
0.5

0.6
0.6
0.2
0.2

1.2
1.2
0.4
0.4

0.0
0.0

0.35
0.35
0.29
0.29

0.44
0.44
0.35
0.35

(Billions(Billionsofofyen)
yen)

0.24
0.24
0.16
0.16

0.12
0.12

0.08
0.08

0.12
0.12

0.29
0.29
0.08
0.08

0.20
0.20
0.12
0.12
0.16
0.16
0.08
0.08
0.12
0.12
0.04
0.04
0.08
0.08
0.00
0.00

June
June2020
2020

June
June2021
2021

June
June20222022

June
June2020
2020

June
June2021
2021

June
June2022
2022

0.03
0.03

0.24
0.24
0.20
0.20

0.44
0.44

0.03
0.03

(Billions(Billionsofofyen)yen)Ordinary
Ordinaryprofit
profit(right(rightaxis)
axis)(Billions(Billionsofofyen)
yen)

0.5
0.5
0.3
0.3

1.6
1.6
0.8
0.8

0.8
0.8
0.0
0.0

June
June2021
2021

0.6
0.6

0.8
0.8
0.4
0.4

2.0
2.0
1.2
1.2

1.14
1.14

June
June2020
2020(Billions(Billionsofofyen)
yen)

0.6
0.6
0.4
0.4

2.4
2.4
1.6
1.6

0.71
0.71

0.63
0.63

Other Business

1.0
1.0
0.6
0.6

2.0
2.0

(Billions(Billionsofofyen)
yen)

1.14
1.14

25.7
25.7

Net
Netsalessales(left(leftaxis)
axis)(Billions(Billionsofofyen)yen)Ordinary
Ordinaryprofit
profit(right(rightaxis)
axis)

42.9
42.9

Net
Netsalessales(left(leftaxis)
axis)(Billionsofofyen)yen)(Billions

1.5
1.5

2.4
2.4

50.0
50.0

5.0
5.0

(Billions(Billionsofofyen)
yen)

20.3
20.3

30.0
30.0
20.0
20.0

(Billions(Billionsofofyen)
yen)

60.0
60.0

Net
Netsalessales(left(leftaxis)
axis)(Billions(Billionsofofyen)yen)Ordinary
Ordinaryprofit
profit(right(rightaxis)
axis)(Billions(Billionsofofyen)
yen)

0.04
0.04
0.00
0.00

13

Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Highlights
Topics01

Joint Research Aimed at Recycling High-Purity
Minor Metals from Lithium-Ion Batteries

Topics04

Opening of a New Welfare Service Location, Focusedon Social Farming, for People with Disabilities

Topics06

Construction of New ECONECOL Plant in Fuji,
Shizuoka Prefecture

In August 2021, we signed a joint research agreement with Emulsion FlowIn April 2022, we divided Ecommit

ECONECOL Inc. collects riddling ash, waste shredder residue, mixed

Technologies Ltd. (EFT) to use EFT’s emulsion flow (hydrometallurgical)

Azumino, where ASTOCO Inc.

metals, and other materials from all over Japan and recycles them into

technology to collect minor metals from lithium-ion batteries (LIBs). Our role

conducts a type B continuous

high-grade materials using proprietary recycling technologies. The newis to collect LIBs, provide minor metal concentrate sludges that have

employment support program forplant will expand these efforts by establishing a system that offers

undergone primary processing, and share our knowledge on solvent

people with disabilities, into Ecommit

improvements on the productivity, safety, and environmental fronts. Anotherextraction technologies. EFT is responsible for development to scale up

Akashina (a new location focused on

objective is to establish a model case for future horizontal expansion toemulsion flow equipment and for using emulsion flow technology to develop

social farming) and Ecommit

new sites and other plants.

minor metal extraction flows.

Toyoshina. This second location
handles recycling, in collaboration with Group company SYN ECO Inc.

Joint research agreement

TopicsConcentrated sludge ofminor metals
Primary processing of lithium-ion
batteries (disassembly, heating)

Used lithium-ion
batteries

Auto manufacturers

Topics02

Horizontal recycling oflithium-ion batteries

Lithium-ion batteries

05

Extraction of high-purity
minor metals
Cobalt and otherhigh-purity minor
metalsJapan Machinery Leasing
and Sales Co., Ltd.

Plants, facilities, andmachinery(Sustainability Strategy). In August 2022, we revised our consolidated

03

Nationwide Collaboration in Cleaning andDismantling Work
Purchasing of used and various
types of machinery (used value)

Processing and purchaseof scrap (resource value)

In August 2021, we unveiled our medium-term management plan

Topics

P26

One-stop solution for building dismantling anddisposal of unneeded facilities

Battery manufacturers

Announcement of Our Medium-Term
Management Plan (Sustainability Strategy)

numerical targets on a rolling basis.

P17

Dismantling of buildings andfacilities

Dismantling of plants andfacilities (resource value)
Industrial waste

Cooperative asset valuation
Support for decision-making on business transfers, disposals, and restructuring

Topics07

Collaboration to Strengthen Our Material
Recycling of Waste Plastics

We have started collaborating with TBM Co., Ltd. a new-materials venturecompany, on the operation of a material recycling plant for waste plastics.
Our role is to provide human resources, expertise, and know-how in thecollection and recycling of waste plastics.

P7

Reinforcement of the Wood Biomass Businessthrough M&A

The company has entered a business alliance with Sumitomo Mitsui Trust
Panasonic Finance Co., Ltd. and Japan Machinery Leasing and Sales Co., Ltd.
The collaboration combines the Group’s expertise in scrap processing and

Topics08

Expansion of Recycling Plant
for Lithium-Ion Batteries

In October 2021, Fujimi BMS Co., Ltd. became a subsidiary of ECONECOL

dismantling with Japan Machinery Leasing and Sales’ knowledge and expertise

VOLTA Inc. has established new facilities

Inc., and Econecol abosorbed and merged Fujmi TMS Co., Ltd.in March 2022.

in machinery and equipment, including its appraisal and sales functions.

at a plant in the city of Fuji, Shizuoka

This acquisition enhanced our response to the growing demand for recycled

Through the alliance, we offer a full range of services, from fixed asset

Prefecture that recycles lithium-ion

wood waste and biomass fuels, which we had handled little in the past.

evaluation to the resale and recycling of unneeded machinery and other assets.

batteries.

P16

14

Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Resource Circulation Business
Flow of Treatment/Processing in the Resource Circulation Business

INPUT

Above-ground resources(waste)RECYCLING

Paper waste, sponges, light dust, and lightweight plastics

Materials are finely shredded
for recycling.

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

Shredding

Magnetic separation

Ferrous scrap

Incineration

Dry specific gravity separation

RPF

Automobiles
Photocopiers■ Microwave ovens■ Vacuum cleaners■ Smartphones, etc.
■■

FerrousmetalsNonferrous
metals

CopperAir separation
Paper waste, sponges,
and light dust areremoved from theshredded mixture
using air separators.

Heavy particles

Refuse paper andplastic fuel (RPF) plantLight particles

RPF and other solid fuel are
produced from waste.

LiquidElectronic circuit boards

Aluminum

Heavy particles

Separation

Shredded steel scrap

Light particles

Air power

Automobiles

Materials for
cementproduction

Waste is sorted by using vibration
and upward air flow.

Agitation
propellers

Small home appliances

OUTPUT
Recreating resource value

Wet specific gravity separation
The specific gravity of a liquid that combines water and a specific metal powder is adjusted
according to the items to be extracted, separating items into those that float and those that settle.

Eddy current separation
Falling non-magnetic metals
are sorted using magnetic
repulsion.

Gold, silver, and copper
sediment sludge*2

Ferrous metals

Riddling ash*1

REUSE

GLOBAL TRADINGREMANUFACTURING
Plastics for fuelExport overseas■

Airplanes■

Used cars
ExtruderPlastics

Materials manufacturers

RPF (solid fuel)*3

Plastic pellets
Aluminum
Tires

Copper

Gold, silver,
and copper
sediment sludge

Plastics for fuelExtruded materials

Rubber chips*1 Riddling ash is ash that falls through the grate of a stoker furnace when waste is incinerated.
*2 Gold, silver, and copper sediment sludge is a mixture of gold, silver, copper, platinum, and palladium.
*3 RPF, which stands for “Refuse derived paper and plastics densified Fuel,” is a high-grade solid fuel made mainly from recovered paper and plastics (mainly from industrial waste) that are difficult to recycle as materials.

15

Sustainability Strategy

BusinessResource
Circulation
Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

ECONECOL Inc.

Business

Recycling of resources using large shredders
Collection of gold, silver, and copper sediment sludge from incineration ash
Manufacture of low-carbon raw materials and fuels
Cleaning and dismantling work
Reuse and recycling of aircraft

For moredetailed company
information

Value & Vision

Contributing to a Sustainable Society by Circulating
High-Quality Low-Carbon Raw Materials and Fuels through Society
ECONECOL Inc. was established in 1950 in the city of Fujinomiya, Shizuoka Prefecture.
Since that time, the company has been involved in the Resource Circulation Business, focusing on the recycling of metals, plastics, and waste materials.
A parent organization of the ENVIPRO Group, ECONECOL leads the recycling industry in the spirit of pursuing opportunities to reduce wastefulness.

Products made from recycled wood waste usiness of Collection Gold, Silver, and Copper
B
Sediment Sludge from Urban MinesThe Tokyo Olympics held in 2021 showcased an experiment in “urban
mining,” in which medals distributed to the winning athletes were made fromrecycled materials. While much attention has been paid to the value of waste

Comment

Our Mission:
Contribute to create a sustainable society
Fumikatsu Sano, Representative Director ECONECOL Inc.

 unning the Plant on Electric Power fromR
Renewable Sources
ECONECOL is working toward RE100, an initiative that calls for companies toprocure 100% of the electricity required for their business operations fromrenewable energy sources. The company is already using 100% of electric powerfrom renewable sources at its head office plant and Hamamatsu plants. P32
These plants recycle materials into environmentally friendly, low-carbon raw
materials and fuels for use around the world.

Reinforcing the Wood Biomass Business
In March 2022, ECONECOL absorbed Fujimi BMS Co., Ltd., reinforcing thebusiness of providing a stable and sustainable supply of wood chips, which areused as boiler fuel.
Wood waste comes in many categories, primarily from trees, construction, andwooden pallets. This wood waste can be thermally recycled. Through material
recycling, these types of wood waste can also be transformed into chips forpaper manufacturing or raw materials for medium-density fiberboard (MDF).

ECONECOL conducts resource recycling. We focus on the Resource Circulation Business,
which is in keeping with the Group’s mission “Contribute to create a sustainable society”
In addition to general ferrous and nonferrous metals, we recycle precious metals andminor metals. We combine various sorting technologies into our own proprietary
techniques for recycling valuable resources. We cooperate withproduct manufacturers to promote a circular economy in which
product, consumption, waste recycling, and manufacturing flows
lead to materials that can be recycled into product materials.We
believe that expanding our business model in this way will bring
us closer to the aim of achieving a sustainable society.

16

Sustainability Strategy

Business

ESG Initiatives

Resource
Circulation
Business

ECONECOL Inc.

electrical and electronic products as resources, most incineration ash frommunicipal waste–which contains precious metals–is still disposed of in
landfills. After years of research, ECONECOL has established a technology tocollect precious metals from some of this incineration ash. The technology
was patented in January 2019. The precious metals contained in riddlingash*1 and mixed metals are concentrated, collected, and recycled using
technology that optimizes physical sorting methods. By expanding thisinitiative to municipalities nationwide, we also plan to help reduce the amountof waste sent to landfills.
Stoker furnaces account for the majority of Japan’s general waste treatment
facilities. Nationwide, Japan has around 390 facilities capable of processing
more than 100 tons per day. In 2022, the final year of the Enlightenment
period for this project, our operations covered 2.5% of these facilities. We
regard this project as the spread period from 2023, and by 2025 we aim toreach 16% of facilities.
*1 Riddling ash is the incineration ash that falls through the grate of a stoker furnace.

(%)

30

Market share (target)

25

Target for 2028 (updated)
Stoker furnaces: 120 facilities
Net Sales: ¥2.1 billion
Operating profit: ¥0.9 billion

20

Expect toreach 5.9%

15
10
5
0

1.5%
2021

2.5%
2022

Enlightenment
period

30%

16%
10%

5.0%
2023

2024
Spreadperiod2025

2028
Growthperiod anufacturing Low-Carbon Raw Materials andM
Fuels (RPF) from Waste Plastics
Refuse derived paper and plastics densified fuel (RPF) is solid fuel made fromwaste plastics and paper waste that is difficult to recycle. An environmentally

Sustainability Report 2022

Financial and Company Data

Business

Recycling of resources using large shredders
Collection of gold, silver, and copper sediment sludge from incineration ash
Manufacture of low-carbon raw materials and fuels
Cleaning and dismantling work
Reuse and recycling of aircraft

friendly fuel, RPF offers stable quality and significantly lower CO2 emissions
than coal and other fuels. We produce about 25,000 tons of RPF per year,
most of which we supply on an ongoing basis to paper companies for use as
boiler fuel. Our plant is currently
operating around the clock, andwe intend to expand production,
as we plan to further increase
the number of clients.

RPF

For moredetailed company
information

 onstruction of a New Plant in Fuji, Shizuoka
C
Prefecture
In December 2021, we began construction of the Fuji plant, a new base ofoperations in Fuji, Shizuka Prefecture. The plant was completed in September
2022. The plant building, which is on a 13,000-square-meter site, has 6,300
square meters of floor space. Recycling equipment is steadily going into
operation. The plant uses our proprietary technology for physical sorting tocollect nonferrous metals, precious metals, and plastics from incineration
ash, mixed metals, and waste shredder residue.
The plant will ensure high productivity and improve profitability, whileproviding a safe work environment that reduces employee workloads andexternal environmental impact.

17

Sustainability Strategy

Business

ESG Initiatives

Resource
Circulation
Business

Sustainability Report 2022

Financial and Company Data

Kuroda Recycle Co., Ltd.

Business

Recycling of resources using large shredders
Collection of gold, silver, and copper sediment sludge from incineration ash
Manufacture of low-carbon raw materials and fuels
Cleaning and dismantling work

For moredetailed company
information

Value & VisionHelping to Realize a Sustainable Society through the Cleaning, Disposal, andRecycling of Unwanted Items
We are developing a community-based recycling business in southern Hokkaido, centered on the city of Hakodate.
August 2022 marked the company’s 100th anniversary of establishment. We are actively involved in dismantling work, as well as the disposal of large items,
such as automobiles and wind power generation equipment.

Providing a One-Stop Service for Dismantling Work
Kuroda Recycle Co., Ltd. provides a one-stop service for dismantling work,
including the cleanup of debris from buildings and grounds, preliminary
investigation of asbestos-containing building materials, CFC collection, andbuilding dismantling work. The company’s centralized management improves
work efficiency and reduces costs for the customer.
The company provides service throughout Hokkaido and is helping to resolve
the issue of vacant houses. These have become a social issue in Japan due
to a shrinking population, falling birthrate, and aging society.

Estimating and cleaning
Before dismantling

Preliminary survey of building materials forasbestos content

recycling facility that operates under ministerial authorization. ASR contains
metals that cannot be collected by shredding and sorting processes. We
collect small metals (gold, silver, and copper sediment sludge) by utilizing
various approaches, such as sorting by particle size and using magnetic
force, wind power, and eddy currents. After gold, silver, and copper sedimentsludge is collected from ASR, the remainderis blended with other waste plastics andconverted into fluff*1. We provide fluff tocement manufacturers, which use it as a fuelalternative to coal.
We will continue working to improve therecycling rate for end-of-life vehicles. In
particular, we will focus on research to makeour sorting technology more sophisticatedand increase processing efficiency.
Alternative fuelDismantling work

Wind and Solar Power Recycling
Hokkaido has many locations suitable for wind power generation, and numerous
generation facilities are in place in the region. Among these facilities, many havedeteriorated after reaching the end of their 20-year useful life and are being
removed. Kuroda Recycle is using its well-equipped processing facilities torecycle the large waste objects
that result (ferrous scrap, special
metals, and other materials).
Many wind turbines will be
constructed offshore in the
future. Kuroda Recycle will
utilize its freight forwarders toactively accept objects fromacross Hokkaido to marine
routes throughout Japan.
Wind power generation facility

After dismantling
Comment

A Direct Relation between
Our Work and Carbon Neutrality
Koji Nara, Representative Director Kuroda Recycle Co., Ltd.

We handle a wide variety of waste, including end-of-life vehicles and home appliances.
We also focus on dealing with the “dust” that remains after resources have beencollected through the shredding and sorting processes. The
resulting substance is a fuel alternative to coal. We supply thisfuel to cement companies to help them in their decarbonization
initiatives. Also, our production processes are powered by 100%
renewable energy sources. We will continue to promote therecycling of waste materials to meet society’s demands.

Collection Gold, Silver, and Copper Sediment
Sludge from ASR and Manufacturing Low-Carbon
Raw Materials and Fuels
Kuroda Recycle recycles automobile shredder residue (ASR), which is
produced by shredding end-of-life vehicles. The company runs an ASR

ASR recycling plant*1 Fluff (a recycled product of plastic containers and packaging) is what remains when these containers and packaging are finely cut after washing, removal of foreign matter, and drying.

18

Sustainability Strategy

BusinessResource
Circulation
Business

ESG Initiatives

SYN ECO Inc.

Sustainability Report 2022

Financial and Company Data

Business

Recycling of resources using large shredders
Cleaning and dismantling work
Recycling specified home appliances
Integrated community recycling

For moredetailed company
information

Value & Vision

Achieving Circular and Ecological Economy with the Local Community
through Recycling
SYN ECO provides a recycling business with close ties to the community. Focusing on the cities of Matsumoto and Azumino in Nagano Prefecture,
the company offers a Mottainai BOX service and recycles specified home appliances. The company has obtained a new permit for compressed packaging of waste plastics
and has begun the thermal recycling of plastics, using them as a fuel alternative to coal.

P roviding a Platform for Collecting Community
Resources: Working Closely with the Community
through Mottainai BOX Activities
SYN ECO Inc. has set up Mottainai BOX Stations as resource collection sites
at 21 locations in theItems collected at Mottainai BOX Stations
Chushin district ofNagano Prefecture. In
fiscal 2021, the company
collected 5,500 tons ofUsed clothes Waste paper Aluminum cansMetalresources. The amountcollected has been
increasing each year as
the stations grow moreconvenient.
On our updated website,
we have begun to informcustomers of our monthly
collection volumes.
Mottainai BOX
The company also
Volume (t)Amount Collected at Mottainai BOX Stations
donates a portion of the
5,527
6,000
5,294
proceeds it generates
5,000
5,001
5,214
from the collection of
4,978
3,844
4,000
resources to the local J2
3,000
2,767
League Matsumoto
2,000
Yamaga Football Club
1,983
865
and Nagano Children’s
1,000
264
Hospital.
0‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 (Year)
Mottainai BOX

characterizes the company’s commitment to local production for local
consumption by returning proceeds to the community from recycling
resources collected locally. In addition to these activities, we support
Mamafes Matsumoto activities and cooperate in events related to the reuseof children’s books and other materials, as well as other activities closely
related to the community. P40

 sing Large Shredders to Conduct High-Quality
U
Intermediate Processing
SYN ECO is the only company in Nagano Prefecture to use a large shredder
to shred and sort metals and waste plastics. Leveraging the shredder’sintermediate-processing characteristics, we shred ferrous and nonferrous
metals and composite waste, sell each recycled item, and help transformthem into new products. The mixed metals and nonferrous metals thecompany processes are sorted and recycled at Group companies, maximizing
Group synergies and economies of scale.

The Specified Home Appliance Recycling Business
SYN ECO is the only company in Nagano Prefecture that recycles home
appliances (general waste) generated in the cities of Azumino and Nagano.
When recycling specified home appliances, disassembly and sorting are doneby hand, mainly by people with disabilities, so the collection efficiency of
resources is high. The number of units processed and the recycling rate canbe checked in real time using resource recycling monitors. The system also
allows for the centralized management of incoming shipments of specified
home appliances and outgoing shipments of collected resources, so theentire recycling process can be monitored.

The number of units received in the city of Nagano, where the company
began operations in fiscal 2021, is increasing.

 educing CO2 Emitted from the Intermediate
R
Processing of Waste Plastics
In May 2022, the company received a new permit for the compressedpackaging of waste plastics. This permit opens the way to ship waste
plastics, which were previously only shredded, as raw materials for RPF andother recycled fuels. SYN ECO is collaborating in this initiative with
ECONECOL Inc., which produces RPF and other fuels. We anticipate that theinitiative will help reduce CO2 through the thermal recycling of plastics, using
them as an alternative fuel to coal. Through the effective use of theseresources, we are working toward the realization of a sustainable society.

Comment

Aiming to Be a Company Offering
Integrated Community Recycling
Shigeto Komatsu, Representative Director SYN ECO Inc.

We live and work in Nagano Prefecture, a wonderful environment rich in greenery. We
aim to be a company that contributes to the community through the local production
and consumption of products using recycled resources generated in this region.
The Mottainai BOX resource collection service that we operate receives a large numberof recyclable materials from the local community. We willcontinue returning some of our proceeds to local sports teams
and children’s hospitals.
We will continue accelerating our efforts to realize a sustainable
society. Our employees will work together as we strive to create
Circular and Ecological Economy.

19

Sustainability Strategy

BusinessResource
Circulation
Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

株式会社

Toyo Rubber Chip Co., Ltd.

東洋ゴムチップ

Business

Waste rubber recycling
Manufacture and sale of recycled rubber and rubber products
Paving work for public facilities

For moredetailed company
information

Value & Vision

Promoting the Remanufacturing Business, Turning Waste Rubber into New Products
Toyo Rubber Chip, which is centered in the city of Maebashi, Gunma Prefecture, is a pioneer in the recycled rubber industry.
The company has been making effective use of industrial resources for 80 years. We contribute to safety and security through the development of a wide range of applications,
including flooring materials for playground equipment in parks and schools, flooring materials for sports facilities, railroad crossing panels, and industrial products.

Efforts to Reduce Environmental Impact
Comment

Toyo Rubber Chip shreds and cuts waste tires and scrap rubber (wastematerials generated during the manufacture of rubber automotive parts), andthen uses this material in remanufacturing.
The company’s products are widely used as elastic pavement material,
artificial turf filler materials, and industrial products. For 80 years, thecompany has been committed to utilizing resources in different ways, rather
than wasting them. By harnessing the technology cultivated over the years,
the company aims to step up its contribution toward the realization of asustainable society.

Kozo Haruyama, Representative Director Toyo Rubber Chip Co., Ltd.

Omni-rubber panel construction of colored panels for pedestrians

Producing High-Safety Colored Rubber Chips
The company manufactures and sells colored rubber chips that are high-quality
and elastic. Colored rubber chips can help reduce damage from falling down.
Vivid colors and good workability make it possible to create attractively

designed pavements. These materials are used in public parks, hospitals,
welfare facilities, shopping centers, daycare centers, kindergartens, andmany other places to provide safety and security to visitors. (Conforms to the
HIC1000 safety standard)

A Circular Economy for Waste Rubber

Rubber-chip paving

The Tire-to-Tire Challenge

The company’s
desulfurization facilities
are capable of returning
discarded rubber tousable raw material. We
receive scrap rubber from
customers’ plants. We
then shred, desulfurize,
cool, and cut the material
to make recycled rubber

For our circular economy (CE) business, we start by developing filler material for tire
manufacturing with the aim of developing technology for the fine grinding of waste tires.
To this end, we plan to make aggressive capital investments in fine grinding technology.
In addition, to recycle waste rubber emitted from customers’ manufacturing processes weare developing new products using a new press molding machineand desulfurization and regeneration using a twin-screw extruder.
As a result, we are providing low-carbon and sustainable products
and services to achieve a closed-loop Tire-to-Tire process.
Toyo Rubber Chip is committed to help realize a sustainable
society through its recycled rubber business.

sheets. We return these sheets to our customers, where they are reborn as
new products.
We are thus creating a rubber-to-rubber circular economy by encouraging
the reuse of limited resources as new products instead of wasting them.

The Rubber Recycling Process

1 Insertion of

shredded rubber
5 Completion

Shredded products (chips)
3 Cooling

4 Cutting2 Desulfurization

Recycled rubber

20

Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Global Trading Business
International Flow of Resources,
Used Cars, and Maintenance Parts

Asia

International flow of resources
ChinaSouth Korea
Japan

Ferrous scrap

Nonferrous metals

Waste paper

Plastics

Biomass fuelFerrous scrap

Nonferrous metals

Waste paper

Plastics

Biomass fuelInternational flow of resources, used cars, and maintenance parts
Used cars

Maintenance parts

TrucksHeavy machinery

Used cars

Maintenance parts

TrucksHeavy machinery

India
TaiwanBangladesh
VietnamPhilippines

ThailandCambodia

EuropeJapan

UAE

Malaysia

Trinidad and Tobago

Kenya

Singapore

Southeast Asia
Cambodia, Malaysia,
Singapore, Indonesia,
Thailand, Vietnam, Philippines

VietnamSingapore

New Zealand

Exports from Chile toneighboring countries

Chile
UAE→Chile
Japan→Chile

Indonesia

Southeast Asia

Singapore→Chile

21

Sustainability Strategy

Business

Global Trading
Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

NEWSCON Inc.

BusinessImport/export of recycled resources (ferrous scrap and nonferrous metals,
gold, silver, and copper sediment sludge, waste paper, used clothes)
Export and sale of miscellaneous items
Import and sale of biomass fuelFor moredetailed company
information

Value & Vision

Contributing to Global Resource Recycling by Helping the Group Expand its
Overseas Business
NEWSCON functions as an overseas antenna for the ENVIPRO Group. The company helps the Group optimize the recycling of resources by facilitating the global flow of recycledresources such as ferrous scrap, nonferrous metals, waste paper, and used clothes produced and collected within and outside the Group.

 omestic and Overseas Sales of Ferrous Scrap,
D
Which Is Used in Steelmaking
Ferrous scrap is an important recycled resource in Japan, which is poor innatural resources. The global trend toward decarbonization is leading to plans
to expand electric furnaces that melt ferrous scrap. This approach is said togenerate less CO2 than blast furnaces that use iron ore and coal. Demand forferrous scrap is thus slated to increase. NEWSCON conducts quality control
in accordance with customer needs and sells ferrous scrap to (blast furnaceand electric furnace) steelmakers in Japan and overseas. In response to thegrowing demand for steel in Vietnam and other countries in Southeast andSouthwest Asia, we have established new and expanded collection bases inJapan 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, as transportation logistics growmore diverse, we have been making active use of bulk shipping (small andlarge vessels) and container transportation to sell iron and steel resources on
a global scale.

Ferrous scrap

Processing and Supply of Nonferrous Metals
NEWSCON processes and supplies a variety of nonferrous scrap that has
been shredded and sorted by ENVIPRO Group and domestic waste disposal
companies to meet the needs of domestic and international customers.
NEWSCON also uses its domestic yards and overseas network to efficiently
collect and supply various
types of nonferrous scrap.
The company is working to
expand global resource
recycling by importing
e-scrap (such as circuitboards and gold, silver,
and copper sedimentsludge) from Europe andselling it to third countries. E-scrap (waste circuit boards)

International Flow of Waste paper, Used Clothes,and Other Recycled Goods
The company exports waste paper (as a raw material for papermaking) andused clothes (reused commercial materials). We have dedicated warehouses
for waste paper in the cityof Niigata and in Imari,Saga Prefecture. Fromthese locations, we provide
fine-grained export
services starting with smalllots. The company is also
addressing the growing
cross-border market for Waste paper

e-commerce, selling Japanese appareland general merchandise such as
hygienic products. Recently, we have
expanded sales channels into Taiwan
and Vietnam and other countries. In
addition, the company is actively
engaged in the distribution of recycledresources, including waste plastics, bothin Japan and overseas.

Rubber tubes (raw materials for recycled
rubber)International Trade in Biomass Fuel
The company deals in palm kernel shells (PKS), which it sells mainly in Japan
as fuel for biomass power plants. PKS have been gaining attention as arenewable fuel. Going forward, in addition to PKS the company plans to
expand its product line to include wood pellets, new fuels and others.

22

Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

NEWSCON Inc.

Global Trading
Business

Export Volume in the Year
ended June 2022

Business

Biomass fuel:9,000

Ferrous scrap:

8,000

tons

tons

Nonferrous metals:

13,000Used clothes:

2,000

tons

NEWSCON Inc. is responsible for developing new cross-border and overseas
business for the ENVIPRO Group. Currently, we are strengthening trilateral
trade that bridges the European and Asian markets. We are also developingbases to collect the recycled resources generated from electronic devices
and EVs, which are increasing in number as electrification progresses. The
company is also promoting collaboration and synergy with various scrap
processors, manufacturers, and other suppliers.
In line with the Group’s strategy, NEWSCON is constantly seeking out new
ways to optimize the reuse of energy and resources through business
investments and partnerships with other companies in the industry,generating value from the recycling of goods.
Invoking the Japanese concept of “mottainai”(which encourages us not to unnecessarily
waste materials, and to recycle products
wherever possible), we recycle usedproducts through the ENVIPRO Group
network. By finding recycling contact points

tons

Waste paper:

504,000

Invigorating Global BusinessImport/export of recycled resources (ferrous scrap and nonferrous metals,
gold, silver, and copper sediment sludge, waste paper, used clothes)
Export and sale of miscellaneous items
Import and sale of biomass fueltonsthat invigorate the industry, we will contribute to the realization of a moresustainable world.

Introducing Our Overseas Bases

company provides nonferrous metals, waste paper, plastics, and various
other Japanese recyclable resources to recipients overseas. The company
established a representative office in Ho Chi Minh City in 2015 to meet theneeds of the times, and the volume handled in Vietnam has grown steadily.
To meet the needs of our customers, in addition to Japan we aim to export toVietnam from Europe, North America, and a wide range of other regions.

NEWSCON Europe Representative Office
Our representative office in the United Kingdom collects and sells nonferrous
metals, precious and other mixed metals, and electronic circuit boards.
Resources collected in Europe are sold to customers within Europe and in
Asia. We are expanding our lineup of products and cultivating newcustomers and distributors. The European Representative Office collects,
analyzes and disseminates to the ENVIPRO Group and its stakeholders
information on European environmental policies, recycling business models,and various decarbonization-related
topics, as well as on trading activities.
We are also working to implement our
medium- to long-term businessstrategy of collaborating with recycling
and environmental businesses in
Europe.
NEWSCON Europe Representative Office

NEWSCON Vietnam Representative Office
Recycling requires overseas involvement. Recycled resources from Japan are
circulated around with the world. As Japan is unable to fully absorb therecycled resources it generates, these resources are passed on to customers
overseas, where the raw materials gain a new lease on life.
The company delivers such valuable
resources to people around the world
who need them, when they need them.
For example, ferrous scrap is an
important recycled resource. This
scrap is exported to Vietnam and usedby local steelmakers, where it istransformed into new steel products.
In addition to ferrous scrap, the NEWSCON Vietnam Representative Office

For moredetailed company
information

Comment

NEWSCON, leading “One Envi”
Hideki Yoshimi, Representative Director NEWSCON Inc.

We serve as an antenna for the ENVIPRO Group and a bridgehead for its overseas
strategy. The global trend toward carbon neutrality is leading to the rise of resource
nationalism, and lifestyles are changing as a result of the COVID-19 pandemic. As aresult, we may find ourselves in a world where conventional
wisdom no longer applies. In preparation for the new status quo,the ENVIPRO Group hopes to help realize a sustainable society
by building recycling schemes that match the right people andthe right places, leveraging a recycling network with a global
perspective.

23

Sustainability Strategy

Global Trading
Business

Business

ESG Initiatives

3WM Co., Ltd.

Sustainability Report 2022

Financial and Company Data

BusinessE xport of and trilateral trade in used cars, trucks, heavy machinery,and maintenance parts
Logistics agency business

For moredetailed company
information

Value & Vision

Transnational recycling of resources through reuse of used cars, heavy equipment,
and maintenance parts
We supply high-quality Japanese used cars and maintenance parts to the world through our overseas bases in the UAE and Chile.
The company also promotes the reuse of used cars and maintenance parts on a global scale through the trilateral distribution of used maintenance parts.

International Distribution of Used Cars andMaintenance Parts
The corporate mission of 3WM Co., Ltd. is to “provide things that people
consider unnecessary to the people who need them.” Under this mantra, 3WM
sends used cars, auto parts, trucks, and heavy equipment from Japan andoverseas locations to countries in need. The recycling rate has been increasing
in recent years, but a first step toward reducing environmental impact is toreuse items that still have a useful life.
Electric and hybrid vehicles that feature low environmental impact arebecoming increasingly popular. Even so, gasoline and diesel vehicles are still
the mainstream in many countries where suitable infrastructure is not yet inplace. Japanese cars are particularly popular around the world because of theirhigh durability andenvironmental
performance. Even thoughcars are an essential partof daily life and logistics
for many, high prices
make it difficult topurchase new vehicles inmany countries.
We help improve people’s
lives by providing usable
vehicles to such countries
at low prices.

F ocusing on the Trilateral Distribution of Reused
Maintenance Parts
In the past, the company mainly exported items from Japan. More recently,

UAE, Middle East

we have also begun removing and reexporting maintenance parts fromcars that started out in Japan and were later exported and spent theremainder of their useful life in other countries.
As the quantity of used maintenance parts generated in Japan is expected
to decrease, we will focus on this trilateral distribution.
In particular, we are working to export parts to Latin America from New
Zealand, Australia, Singapore, Chile, and other countries.
We also have overseas subsidiaries in the UAE and Chile. Although thehurdles to overseas expansion are high, we did so ahead of ourcompetitors, and we are developing our business by working directly withlocal people.
By expanding into overseas markets directly, we have cleared the firstbarrier to trade–earning trust–and created an environment that makes it
easier for customers to buy from us.

Chile, South America

Comment

Expanding the still usable to the world
Mototsugu Kuze, Representative Director 3WM Co., Ltd.

Worldwide, EV sales are growing due to expectations of lower environmental impact.
However, demand remains strong for vehicles with internal combustion engines indeveloping countries with underdeveloped infrastructures.
We use our proprietary technology to sort engines removed from end-of-life vehicles incountries around the world and redistribute them as usable products in countries
where they are still needed.
We play a role in realizing a sustainable society by recycling
end-of-life vehicles. In addition, we help reduce environmental
impact and promote economic development other countries
through our reuse business, through which we distribute
maintenance parts that can still be used.

24

Sustainability Strategy

Business

Lithium-ion Battery
Recycling Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

VOLTA Inc.

Business ollecting and recycling of minor metals from rechargeable batteries
C
Recycling of used casings (other than batteries)

For moredetailed company
information

Value & Vision

Becoming an Indispensable Industry Player through LIB-to-LIB Recycling
EVs are growing in popularity, and global production is expected to quadruple between 2022 and 2030. Demand for lithium-ion batteries (LIBs) is likely to surge accordingly.
However, the industry faces concerns about shortages of raw materials such as lithium, cobalt, and nickel.
Against this backdrop, LIB-to-LIB recycling has emerged as a global challenge.
for haulage, we have achieved 100% renewable energy in all of ourprocesses. We will help to build a low-carbon society by working toward
RE100 at new sites we will establish in the future.

Expanding Battery Collection

 ecycling LIBs to Produce Black Mass and Collect
R
Valuables
LIB cathode materials contain minor metals, such as cobalt, nickel, andlithium. 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. We sell high-quality metals to smelters,
utilizing the expertise we have cultivated since our establishment. In 2022,
the company changed the crusher used on
the electrode material recycling line toincrease production capacity. In 2025, weplan to start operating a hydrometallurgicalplant and expand our business by taking thelead in producing battery materials using
black mass as raw material.
Black massP roduction Using a Decarbonization Process at
RE100 Plants
To achieve carbon neutrality by 2050, decarbonization processes will be
required in battery recycling, as well. With the exception of the trucks we use

In March 2022, we became the fourth company to be certified as a widearea industrial waste recycling processor by JBRC, a general incorporated
association. Our advanced sorting technology allows us to handle a wide
variety of rechargeable batteries, enabling us to collect a range of batteries
across a wide area. In addition, the acquisition of an industrial waste disposal
license has made it possible for us to accept and recycle waste batteries thatare classified as industrial waste. As we can now process LIBs from various
items such as discarded cordless appliances, electric toys, and heatedcigarettes, we expect our LIB handling volume to increase.

Comment

The Lithium-Ion Battery Recycling Process
Batteries to be processedVehicle use (EVs, HEVs, PHVs, etc.)

Cylinder type (PCs, tools, electric bicycles, etc.)

Square and laminated type(mobile phones, etc.)

For ESS(household and industrial storage batteries, etc.)

The Recycling Process in the Plant
Battery recycling process

Electrode plate recycling process

Heating treatment

Shredding/Sorting

Electrolyte is volatilized through heat treatment.

Continuous shredding by multiple shredders andsorting with sieves

Shredding/Sorting*2

Anode sheet/Cathode sheet

Sorting with sieves after shredding

Active materials*1 applied to copper foil oraluminum foil are efficiently stripped off by aspecial shredder

Keeping an Eye Focused on Advanced
Battery Recycling
Kenta Imai, Representative Director VOLTA Inc.

VOLTA recycles rechargeable batteries, such as lithium-ion and nickel-metal hydride
batteries, using its own knowledge and the Group’s recycling expertise. While keeping
an eye on competition from Chinese and other companies that have alreadyestablished a lead in this field, we plan to leverage the Group’s comprehensive
strengths to establish a recycling scheme and develop sorting technology. As a result,
we will take up the challenge of becoming a cutting-edge
recycling company capable of capturing new markets. In
addition to the Group’s strengths in thorough crushing andsorting technology, we will help to realize a sustainable society
by taking advantage of the trading function that enables us topurchase and sell products overseas.

LIB material recycling supply chain

LIB material recycling supply chain

Black mass: Hydrometallurgy manufacturers
Iron: Steel manufacturers
Copper: Copper smelters and manufacturers

Active materials: Hydrometallurgy manufacturers
Carbon: Steel manufacturers
Copper: Copper smelters and manufacturers
Aluminum: Reducing agent applications*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

25

Sustainability Strategy

Business

Welfare Service
Business for People
with Disabilities

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

ASTOCO Inc.

BusinessP re-employment transition support program
Type B continuous employment support program
Satellite work business

For moredetailed company
information

Value & VisionHelping People with Disabilities Find Employment and Participate in Social Activities
We help people with disabilities acquire knowledge and skills. At the same time, we help them find life stability and social relations so that they can find suitable jobs and become independent members of society,helping to resolve the social issue of a shrinking labor force.

Creating Opportunities for People with Disabilities
As the Japanese
ASTOCO’s Initiatives
workforce shrinks,
Matching people with disabilities withgrowing attention is❶ companies (Pre-employment transition
support program)being focused on theeffective employment
Collaborate with companies to receiveof people with❷ work orders (Type B continuous
employment support program)disabilities. During the
COVID-19 pandemic,
the social advancement of people with disabilities slowed temporarily, owing
to a dip in job openings. Since then, the upward trend has resumed. In fiscal
2021, overall data on the employment of people with disabilities show that
this employment reached a record high for the 18th consecutive year.
Turnover is also high, however. Data from a 2017 survey showed that aroundhalf of people with mental disabilities left their jobs within a year.
(Employment Security Bureau Survey)
ASTOCO Inc. promotes job matching through its pre-employment transition
support program, and is working to reduce the turnover rate by providing
appropriate support after employment. In terms of corporate partnerships, weare engaged in the social farming business as a response to the shortage oflabor in agriculture, and we provide
support for personnel during theharvest season and other times ofthe year. In addition, the ENVIPROGroup is involved in the dismantlingof recyclables at recycling sites andsorting after shredding.
In April 2022, we divided Ecommit
Harvesting cucumbers grown by social farming

Azumino into Ecommit Akashina (a location focused on social farming) and
Ecommit Toyoshina (which will handle work in collaboration with Group
companies). Through these efforts, we are increasing opportunities for theactive employment of people with disabilities.

 usiness to Support the Transition to andB
Continuation of Employment
1 Pre-employment transition support program (Bright)

3 Satellite work businessWe address the problems companies face, such as difficulties in responding
appropriately to specific disabilities. We help to ensure a comfortable working
environment and secure jobs for people with disabilities.

ASTOCO offices
BrightEcommitBright Matsumoto
Bright Ekimae Center
MatsumotoWe provide people with disabilities who are seeking employment with acurriculum that helps them find employment and assist them in their jobhunting activities. We also support workers retention, enabling people toremain in work for a long period once they find employment.

Bright Saitama

Ecommit Fujinomiya

2 Type B continuous employment support program (Ecommit)

In cooperation with the ENVIPRO Group, local businesses, and farms, thisprogram provides work and wages according to the work performed. In thisway, we create a place where
People employed: Average wage:
people who have difficulty
16¥22,033
working in general companies
Bright Ecommit
Users to datecan participate in society with
(People)confidence and gain a sense
15,00012,512of fulfillment as members of
11,622
11,041
9,955 9,577
society.
10,000This program has expanded
6,665
the scope of its activities, and
5,000
has now started growing
cucumbers and tomatoes at
0
2020
2021
2022
Ecommit Akashina.

Ecommit Akashina
Ecommit Toyoshina

Comment

Creating a Brighter Place Tomorrow Shines
Kozo Haruyama, Representative Director ASTOCO Inc.

We are convinced that the social engagement that comes with working fosters personal
relationships and allows us to enjoy what is important in life. We would like to convey toour clients the support of welfare and the fact that the community is watching over them,and we hope they will develop the courage to “raise up their hands” in the community,
even when they encounter difficulties. To this end, we strive tocreate a healthy workplace where employees can fully
demonstrate their abilities and where each day brings a smile totheir faces. This approach brings high-quality energy to the people
who use our services. “The supported become the supporters.”

26

Sustainability Strategy

Business

ESG Initiatives

Bright Innovation Co., Ltd.

Environmental Management
Consulting Business

Sustainability Report 2022

Financial and Company Data

Business onsulting and solutions
C
Environmental DX (digital transformation)

For moredetailed company
information

Value & Vision

Providing Consulting and Solutions to Help Companies Manage Decarbonization
We offer consulting services to support carbon-neutral strategies and the establishment of circular economy models, which are becoming increasingly important themes for corporate management, as well as
solutions for the introduction of renewable energy, recycling, and the production of recycled raw materials.

Consulting and Solutions
Carbon Neutrality
Formulation of climate change
response strategy/long-term
visionFormulation of roadmaps for
reducing GHG emissions
Setting of emission reduction
targets (SBT)

Calculation of Scope1, 2, and 3
emissions
Calculation of products’
contributions to emissions
reduction
Introduction of internal carbon
pricing
Research on policies, laws, andcorporate rends related to climatechangeConsulting

Information
disclosure/evaluation
improvement

Vision/strategy
formulation

Research,
calculation

Circular Economy

Solutions

Decarbonization

We have been a CDP Scoring
Partner since 2017.

CDP answers, rating
improvement
Response to TCFD
recommendations, scenario
analysisDisclosure of sustainability
information

Introduction of renewableenergyProcurement of green energy,
creditCredit generation

Formulation of vision/strategy
Setting of circular economy
business objectives

Circular economy-related
research
Circular economy global
corporation benchmark research
Feasibility studies on the
procurement of recycledmaterials
Recycled raw material analysis
research

Connection between Consulting and Environmental DXDISCLOSURE INSIGHT ACTION

Environmental DX(Digital Transformation)

System for calculating CO2 emissions
Reporting systems under the Act on
Promotion of Global WarmingCountermeasures and the Act on
Rationalizing Energy Use
Circular economy platform system

Consulting

Solutions

Vision/strategy
formulation

Modelcommercialization

Research

Resource
circulation

Circular economy businessplanning
Support for construction of
discarded product/waste collection
schemes
Business partner development
supportBusiness cost analysis

Waste collection andprocessing
Recycled materials
processing/manufacturing
Development of applications
for recycled material
products

We offer a package of consulting services and IT-based
environmental DX services.

27

Sustainability Strategy

Business

Environmental Management
Consulting Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Bright Innovation Co., Ltd.

Business

Steps for Implementing
Consulting

For moredetailed company
information

 onsulting and solutions
C
Environmental DX (digital transformation)

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

Internal review by client, consensus building (implementation phase)F ormulate vision for the future, directions for improvement, and action planUnderstand the client’s current situation and needs, clarify issues

STEP

STEP

STEP

3

2

1

Provide the latest trends related to climate change and sustainability Support for writing and data creation through dialogue and collaboration
Practical consulting services that leverage our expertise, unique knowledge, experience, and extensive network

Helping Companies Become Carbon NeutralSupporting a Transition to the Circular Economy

As the movement toward decarbonization accelerates both in Japan andoverseas, it is becoming increasingly important for companies to consider
the impact of climate change on their business operations and torespond 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 with information disclosure in response to the TCFD
recommendations, assistance in improving evaluations from third-party
institutions such as CDP, and aid in creating carbon-neutral strategies
and GHG reduction roadmaps. We also provide solution services to help
companies reduce their emissions by introducing renewable energy, andprovide total support from planning to implementation of decarbonization
strategies.
Bright Innovation, as a member of The ENVIPRO Group, helps companies
achieve RE100 by switching to renewable energy sources for electricity
consumption and installing solar panels on plant premises. In addition to
calculating CO2 emissions and disclosure of sustainability information, in
fiscal 2021 we promoted environmental management through assistancein CDP responses.

The concept of the circular economy and its importance are gaining broader
acceptance as problems such as the depletion of natural resources and theincrease in waste become more apparent. We provide consulting services forthe construction of a closed-loop circular economic model in which waste
products, including plastic containers, are reused as recycled raw materials.
In cooperation with the ENVIPRO Group’s Resource Circulation Business, we
propose recycling, remanufacturing, and other solutions. In this way, thecompany offers consistent services that help companies establish models fora circular economy.

Environmental DX (Digital Transformation)
In recent years, we have been promoting DX through the development of thefollowing two systems. Through these efforts, we aim to streamline andaccelerate our efforts in the fields of circular economy and carbon neutrality,
which have become increasingly important global trends.
1 Circular economy platform system

We are promoting the development of a system to track the process oftransportation, processing into recycled materials, and shipping of waste
generated from the emitter’s business site, as well visualizing theassociated CO2 emission reductions.
2 System for calculating CO2 emissions

We are also promoting the development of a system to calculate CO2
emissions for Scope 1, 2, and 3, visualize the reduction from the baseyear and the level of achievement against the reduction plan, andstreamline the management of these emissions.

Comment

Supporting Decarbonization
Management through Environmental
Management Consulting
Norihiro Nakasaku, Representative Director Bright Innovation Co., Ltd.

Our company helps to realize a sustainable society through its Environmental
Management Consulting Business. Specifically, we help companies transition to
decarbonization through the development of decarbonization strategies, SBT, Scope 1,
2, and 3 calculations, TCFD compliance, and CDP and othercarbon neutral (CN) consulting. We also promote sustainable
resource use by providing circular economy (CE) consulting
services, such as building models to recycle waste, recyclable
materials, and waste products in cooperation with Group
companies.

28

ESG Initiatives

Environment
To achieve carbon neutrality by 2050,
the ENVIPRO Group has joined the RE100 initiative,
whose goals are to reduce GHG emissions toeffectively zero and to use 100% sustainable energy
for electricity consumed in business operations.
Accordingly, the Group has set goals for 2030.

Environment

Sustainability Strategy

Environment

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Becoming Carbon Neutral by 2050

Information Disclosure in Line with
TCFD Recommendations

Governance

Basic Approach

To promote policies and measures related to climate change response andother sustainability strategy matters, the Group’s sustainability promotion
system has a Sustainability Committee that consists of the president andrepresentative director, full-time directors, executive officers, and heads ofsome related departments. The committee seeks to promote the mediumterm management plan (Sustainability Strategy) that forms our strategy for

In May 2019, the ENVIPRO Group announced its endorsement of therecommendations 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 and targets. 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 andrecycling of scrap and waste handled by the Group. As countries work
toward decarbonization, resources and climate change are issues that–far
from being separate–are closely interrelated and global in scope.
Unrestricted resource extraction and GHG emissions undermine
sustainability and must be addressed if we are to preserve the Earth’s
resources and natural environment we share into the future. As its resource
circulation business is located at the end of the supply chain, the Group
has the characteristics to address both of these important social issues
through its business. This is precisely the social responsibility we believe
the Group should fulfill.

Sustainability Promotion Systemachieving sustainable development for both the Group and society. As anorganization 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 along-term perspective. Matters discussed are further resolved or discussed
by the Management Committee, a decision-making body for businessexecution, and are then submitted to the Board of Directors. Under thesupervision system of the Board of Directors, we work to maintain
governance and promote sustainability strategies.

Sustainability Promotion System

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

Supervision

Conference 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.

ReportSelection
Supervision
Dismissal

Management Committee
Supervision

ReportReportRepresentative Director
Instruction

ReportSustainability Committee
Chairperson : President and Representative Director

Instruction

ReportMembers : Full-time Directors, Executive Officers, Heads of Related Departments
Secretariat : Corporate Strategy Division
Instruction

ReportIndividual departments and Group companies

Initiatives to Date

2050
2018

Joined RE100

2019

Announced endorsement of
the TCFD recommendations

2020

Declared a commitment tobecome carbon neutral by
2050

2021

Incorporated theSustainability Committee into
the governance structure30

Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Risk Management

Strategy

Assessment of Environmental Initiatives

At the Group, the Internal Control Committee evaluates and reviews
business risks, which are integrated into the company-wide risk
management process. The Sustainability Committee evaluates and reviews
climate change-related risks. Relevant departments identify opportunities,
consider specific measures, and make recommendations to the
Sustainability Committee 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.

Identifying and Addressing Risks and Opportunities

Climate Change:

The Group conducts scenario analyses to examine the risks andopportunities 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 Sustainable Development Scenario(SDS) published by the International Energy Agency (IEA). We examined theimpact on the Group’s business activities based on the assumption of atemperature increase limited to 2°C by the end of this century and theassumption of a 4°C increase.

The Group received a “B” rating, the third
highest out of nine, in a 2022 study on
climate change conducted by CDP, aninternational non-profit organization.

B

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

Category

Hypothetical examples

Potential Financial Impact
Risks

PeriodOpportunities

PeriodTaxes on various types of energy,
introduction of carbon taxes•	Increased costs of using renewable energy•	Easing of the supply-demand balance and price decline of ferrous scrap due to thedevelopment of new technologies such as hydrogen-reduction steelmaking

Short tolong term•	Expansion of existing recycling business•	Increased demand for ferrous scrap due to shift to electric furnaces, price increase•	Installation of large shredder to produce electric furnace materials

Short tolong term

Regulations on the use ofrecycled plastics•	Reduction in the thermal recycling of waste plastics

Long term•	Growth in demand for low-carbon raw materials and fuels (RPF)•	Expansion of material and chemical recycling of waste plastics•	Development and commercialization of chemical recycling plants

Medium tolong termTraceability of CO2
emissions (DX) mandated•	Lost market entry opportunities due to delays in business development

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

Medium tolong term

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

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

Medium tolong termMarketIncreased adoption of EVs, ESSs•	Increased demand for nonferrous metals and minor metals due to electrification(depletion)

Short tolong term•	Expansion of the Lithium-ion Battery Recycling Business•	Expansion of the business of collection gold, silver, and copper sediment sludge

Short tolong term

Reputation

Social responsibility as anenvironment-related company•	Failure to consider the environment, damage to credibility among stakeholders

Short tolong term•	Scoring by CDP and other international rating agencies•	Disclosure of information in line with the TCFD recommendations•	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 tolong term•	Enhanced response to issue of waste created in disasters

Short tolong term

Chronic

Increased heat stress due tohigher average temperatures•	Decrease in productivity due to restrictions on working hours•	Increased cost of investing in environmental improvement

Short tolong term•	Personnel savings, unmanned operation, remote control

Short tolong term

Policy andregulation

Transitional
Technology

Physical31

Sustainability Strategy

Business

Metrics and Targets

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Electricity Consumption and Percentage of Renewable Energy Use,
Results and Targets
(GWh)
100.0
Electricity consumption (left axis)
97.3

Scope 1 + 2 CO2 Emissions and Targets (t)16,000

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

14,00012,72912,671

12,00011,5609,202

10,0008,000

GHG emissions

4,792

4,000

2017

2018

2019

2020

2021

80.0

15.0

60.0

0.0

Percentage of Electricity Generated from
Renewable Energy Sources

40.0

35.0

5.0

2050

2017

20.0

17.8

2.9

0.0

2018

2019

2020

2021

2030

RE100 Plants*1*1 Plants and facilities that operate entirely on electric power from renewable sources

RE100 Plants
1

Head office plant

Fujinomiya, Shizuoka

2

Hamamatsu plant

Hamamatsu, Shizuoka

Kuroda Recycle Co., Ltd.

3

Head office plant

Hakodate, Hokkaido

Toyo Rubber Chip Co., Ltd.

4

Head office plant

Maebashi, Gunma

5

Head office plant

Matsumoto, Nagano

6

Plaza Azumino

Azumino, Nagano

7

Head office plantFuji, Shizuoka

8

Fujinomiya plant

Fujinomiya, Shizuoka

SYN ECO Inc.

VOLTA Inc.

1

ECONECOL Inc. Head office plant2

ECONECOL Inc. Hamamatsu plant3

Kuroda Recycle Co., Ltd.
Head office plant4 Toyo Rubber Chip Co., Ltd.

Head office plant

RE100 (Except plants)

ENVIPRO HOLDINGS Inc.

Head officeFujinomiya, Shizuoka

Laboratory

Fujinomiya, Shizuoka
5

SYN ECO Inc. Head office plant

6

SYN ECO Inc. Plaza Azumino

0.0

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 2021, renewable sources accounted for 97.3% of electric power
used throughout the Group.

In July 2018, we became the first company in the global recycling industry
to join the RE100 initiative, which sets the goal of reaching 100%
renewable energy for electricity consumed in business activities by 2050.

ECONECOL Inc.

(%)

100.0

20.0

10.0

0

2,000
0

Percentage of renewable energy use (right axis)

Scope 26,000

By 2050, the Group aims to achieve effectively zero GHG emissions from allits operations, including the processing and recycling of scrap and waste.
In fiscal 2021, CO2 emissions (Scope1 and 2) amounted to 4,792 tons,
down 62% from fiscal 2017 levels.

25.0

Scope 1

7 VOLTA Inc.

Head office plant

8 VOLTA Inc.

Fujinomiya plant32

Sustainability Strategy

Environment

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Material Balance

INPUT

OUTPUT

685,000 tons

Scrap, Waste

162,400 tons

Ferrous metals (scrap)

Waste plastic and mixed waste

37,700 tons

Non-ferrous metals

Scrapped cars

9,200 tons

Plastic raw materials

Electronic waste

8,200 tons

Wood waste

7,700 tons

Waste paper

7,600 tons

Scrap/waste

Waste batteries
Other

Distribution
volumeReuse
Raw materials

732,100 tons

Metal scrap

Fuel raw materials

Amountprocessed

Wood chip raw materials
Raw materials for paper
Black mass

2,500 tons
300 tons

Subtotal

236,000 tons

Ferrous scrap

387,200 tons

Non-ferrous metals

13,400 tons

Waste plastics

13,100 tons

Waste paper

7,900 tons

Other
Recycled raw materials

Amountprocessed

Recycled Raw Materials,
Finished Goods, andProcessing Outsourcing

Subtotal
Amountprocessed anddistributed*2

Ferrous metals (scrap)
Non-ferrous metals
Other
Subtotal
Ferrous metals (scrap)

Wood pellets/PKS

9,900 tons

Non-ferrous metals

Other

2,700 tons

Plastic raw materials

Subtotal

434,600 tons

Used cars/trucks

2,048

Raw materials for rubber chips

14,400 tons

Total inputs*1

Fuel raw materials

Distribution
volume*3

Raw materials for paper
Wood pellets/PKS
Other

685,000 tons

Subtotal
Total*1 Sum of scrap, waste, raw materials (excluding reuse)

Used cars/trucks

Reuse

Maintenance parts

Disposal outsourcing

Finished goods

Rubber chip-based products
Material recycling

Recycling

Thermal recycling

Waste disposal

Simple incineration
Landfilling
Total

Total outputs*4

59,800 tons
8,300 tons
800 tons
28,200 tons
6,000 tons
7,300 tons
800 tons
4,400 tons
116,000 tons
101,900 tons
3,700 tons
1,200 tons
106,900 tons
427,200 tons
8,400 tons
2,500 tons
8,400 tons
8,400 tons
9,900 tons
1,600 tons
466,700 tons
689,600 tons
1,582
244 containers
12,600 tons
1,000 tons
14,600 tons
3,300 tons
10,700 tons
29,700 tons
732,100 tons

Energy and Water
Fuel

67.0 TJ
18.2 GWh
42,400 m3

Electricity
Water

CO2 Emissions (Scope 1 + 2)

4,700 tons

Scope 1

4,563.3 tons
7,915.7 tons
229.1 tons

Scope 2 (location-based standards)
Scope 2 (market-based standards)

CO2 Emissions (Scope 3)

152,400 tons

Category 1 Purchased products/services

8,951.7 tons
2,154.2 tons

Category 2 Capital goods
Category 3

Fuel and energy activities notincluded in Scope 1 and Scope 2

Category 4 Transport/delivery (upstream)
Category 5 Waste generated from business
Category 6 Business travel
Category 7 Employee commuting

1,819.9 tons
135,728.1 tons
3,534.0 tons
61.5 tons
217.2 tons

* We will continue to assess emissions in other categories and elaborate on data from thenext fiscal year.

Resource
Recovery Rate*

94.4%* The recycling rate is calculated from outputs: (amount processed + amount processedand distributed + recycling) ÷ (amount processed + amount processed and distributed +recycling + waste disposal) × 100

Disposal outsourcing (waste)
Disposal outsourcing (recycling)
Finished goods
689,600 tons

Recycled raw materials
Amountprocessed

Amount processedand distributed

Distribution volume

Total output: 732,100 tons

*2 Amount of processed resources distributed overseas, etc. *3 Amount of resources distributed through trading company functions *4 Sum of recycled raw materials, finished goods, and processing
outsourcing (excluding reuse)33

ESG Initiatives

SocialS

ocial

The ENVIPRO Group conducts its business activities inan environmentally safe and clean manner in the aim ofcontributing to create a sustainable society.
We promote diversity, aim to be a disciplined group ofautonomous individuals with emergent abilities, andare actively involved in community revitalization.

Sustainability Strategy

SocialBusiness

Sustainability Report 2022

Financial and Company Data

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 other activities on an
ongoing basis to ensure thorough safety management.
Accidents–particularly serious accidents or those at plants or offices involving
machinery and plant or heavy equipment–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 and improving the work environment, and ensuring
the safety of our employees. In this way, we endeavor to ensure stablebusiness activities in accordance with our policies. The ENVIPRO Group iscommitted to preventing harm to people and the external environment.

II. Positioning the Environmental & Safety
Promotion Committee
1. Activities and Role
We have established the Environmental & Safety Promotion Committee,
which is responsible for initiatives across the Group companies. The
committee’s objective is “to establish a brand as a safe and clean company.”
The committee has established the following three policies, which it isworking to fulfill.
Policy 1

ESG Initiatives

Create a Safe and Comfortable Workplace

We conduct hazard protection initiatives before commencing tasks, offer
regularly scheduled education and training, run safety competitions, andengage in risk management and other safety activities. We take regularmeasurements of the working 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.
Policy 3

Structure of the Environmental & Safety Promotion Committee

Raise the Management Level

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

Instruction

Reporting

Environmental & Safety Promotion Committee

Members: One or two people from each company
The Group’s operating companies have acquired certifications
under ISO 14001 (environment) and ISO 45001 (occupational
Group Companies• ECONECOL Inc.
• Kuroda Recycle Co., Ltd.
health and safety). In addition, each company promotes activities• SYN ECO Inc.
• Toyo Rubber Chip Co., Ltd.
to ensure the safety and health of its employees and to protect• NEWSCON Inc.
• 3WM Co., Ltd.
the environment through the operation of its management• ASTOCO Inc.
• VOLTA Inc.
system. Activities of the Environmental & Safety Promotion• ARBIZ Corporation• ENVIPRO HOLDINGS Inc.
Committee are reported to full-time directors of ENVIPROOne or two committee members are selected from each company to encourage the bilateral
HOLDINGS and the presidents of Group companies at monthly
sharing of information.
meetings of the Internal Control Committee (chaired by thepresident 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.

2. Activities to Date
By sharing the details of individual Group companies’ discussions andinitiatives, the committee helps each of them efficiently and effectively
incorporate the items they need. The Environmental & Safety Promotion
Committee has rolled 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, and theintroduction of fire extinguishers for lithium-ion batteries (LIBs) and otherrechargeable batteries.

Firefighting drill

35

Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Industrial Accidents(Number)

30
25
20
15
10
5

Using a full harness to prevent falls

0

FY06/19

FY06/20

FY06/21

FY06/22

Number of Employees and Industrial Accidents per Employee*1(People)Using a drive recorder

Conducting first aid training

Measuring the working environment

Employee measurement of the working environment
Improvement of in-plant stormwater drainage
Installation of oil collection equipment in the plant’s oil/water
separation tank
Addition of in-plant lighting, switch to LEDs
Fire drills (evacuation and rescue drills)

2 Safety activities at Group companies

Use of full harnesses to arrest falls when working at heights
Operation of forklift drive recorders
Installation of safety devices, safety barriers, and emergency stopfunctions at existing facilities
Appointment of people to take charge of safety management at
business sites
On-site inspections in the event of industrial accidents
Holding of safety competition

10

480

8

450

6

420

4

390

2

0

1 Environmental activities at Group companies(%)

Number of employees (left axis)
Rate of industrial accidents (right axis)

510

FY06/19

FY06/20

FY06/21

FY06/22

FY06/20

FY06/21

FY06/220

3. Results in the Fiscal Year ended June 2022
The number of accidents at the ENVIPRO Group has been trending
downward since the fiscal year ended June 2020, following thestrengthening of environmental and safety activities and the establishmentof the Environmental & Safety Promotion Committee. In the fiscal year
ended June 2022, the Group experienced 14 occupational accidents, one
more than in the previous year, and 62 injuries, up five year on year.
Over the three years beginning with the fiscal year ended in June 2019, thenumber of employees at year-end has increased by 80, from 418 to 498.
Accordingly, the number of accidents per capital has been generally flat.

4. Future Initiatives
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, the entire ENVIPRO Group is committed
to implementing the planned activities and reducing the number ofaccidents year on year.

Accidents(Number)

70
66
62
58
54
0

FY06/19

Number of Employees and Accidents per Employee*1(People)(%)

Number of employees (left axis)
Rate of injuries (right axis)

510

20

480

16

450

12

420

8

390

4

0

FY06/19

FY06/20

FY06/21

FY06/22*1 Rates are calculated as (number of cases ÷ number of employees) × 100.

036

Sustainability Strategy

SocialBusiness

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Aiming to Be “A Disciplined Group of Autonomous Individuals
with Emergent Abilities”

As stated in the message from top management, one of the keys forachieving the ENVIPRO Group’s strategy is “investment in human resources
to promote business activities.”
Over the medium term, we intend to create 100 business promoters. To
achieve this goal, we will focus on the three important areas of hiring,training, and retention.

HiringKana Miyamoto
Recycling Raw Materials Department
Non Ferrous Raw Materials Section
NEWSCON Inc.
Joined April 1, 2022

HiringTraining

The first area of focus is hiring. We are looking forpeople who share our corporate philosophy, agreewith our corporate culture, and are willing to work
toward high goals, persevere, and think hard.

The next focus area is training. Each of ourbusinesses are working on a variety of projects.
Each of these projects offer numerous employees
opportunities to participate in training throughpractice and experience.

New graduates who joined in fiscal 2021

I majored in sustainability at university.
I came across ENVIPRO when I focused my job search on the recycling industry.

Hiroki Naka

I decided to join the company because of its sustainable business of

Production Section
SYN ECO Inc.

transforming the world’s ever-increasing amount of waste into commercial
products, and also because of the appeal of being able to work overseas. It has

Joined August 1, 2022 (Scrum hiring)

been six months since I joined the company. Although every day surprises me

My wife has worked for SYN ECO for 10

with the dizzying pace of change in the global situation and fluctuations inyears since graduating from junior college,exchange rates and the precious and nonferrous metals markets, I enjoy myand I wanted to be involved in thework and feel a sense of fulfillment. I hope to keep learning, gain substantial

Resource Circulation Business, which I think will be of increasing importance inknowledge, and grow every day so that I can become like my respected boss.

the future. I am also part of SYN ECO, which aims to be a “community-integrated
recycling company.” When I joined the company and actually got involved in the

Retention

The final category is retention. Taking a long-term
perspective, we promote job rotation and are flexible
about changing positions to help employees gain avariety of experience. We constantly seek to improve
compensation through base salary increases,
bonuses, and equity compensation.

To implement these measures, we will disseminate the strong message that
we expect our employees to foster mutual trust, independent learning, ashared vision, a spirit of challenge, honest effort and respect for others, andthe ability to think and act as a concerned party. (Emergent capabilities)
It is also important to clarify The Envipro group’s significance in the world(purpose) and to foster a bright and open corporate culture and a culture of joy.
To cultivate this corporate culture within the Group, we share the organization’s
rules and regulations to be followed, as well as our desired corporate culture,
in a Management Plan upheld by all employees. (A disciplined group)

Yohei Matsunaga

work, I was surprised at how much waste from our daily lives can be recycled. At

Laboratory
ENVIPRO HOLDINGS Inc.

the same time, I often feel that Japanese sense of “mottainai,” meaning I am

Joined April 1, 2022

dispirited by how much we waste. I am still learning about this industry, but I am
motivated by my desire to understand the importance of resource recycling better

In my job search I was looking for athan anyone else and to contribute to the local community on the front lines.

company that was committed to realizing a

I believe that if we can recycle all the waste the world produces, we can better

sustainable society. I was attracted bypreserve our limited resources for future generations with more care, and we will

ENVIPRO because it handles a wide variety of products through several Group

make the Earth a cleaner place to live. It is very rewarding for me to be involved incompanies, has a consulting business, and is taking on new challenges such as

such efforts through our business, and to know that I am contributing to society.

the reuse of plastics and LIB recycling. The business itself contributes to society.
In graduate school, I studied technologies involving the genetic modification of

Scrum Hiring

plants to help address food-related problems. Since I joined the company, I haveThis phrase refers to “employee-led hiring.” We have adopted this hiring system, inwhich all employees work together as one. In fiscal 2021, four people joined theGroup as a result of scrum hiring of friends, spouses, and family members. To date,
this type of hiring has resulted in the hiring of 17 pairs (38 people) and 30 people
who were re-hired following retirement.

been working on LIB research, and I am motivated by the fact that I can learn newthings from scratch. I hope to learn more, improve, and become better able tospeak up at meetings. I am also motivated by the fact that I am in charge of amachine makes up a key component of my research.

37

Sustainability Strategy

Business

Training

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Retention

Corporate Philosophy Briefing Sessions
Peter Drucker once famously said that “Culture eats strategy for breakfast.” We
believe in creating a good corporate culture by instilling the most important
ideas; we are convinced that this foundation will drive our growth. In “A deepIn fiscal 2022, the Business School will continue to plan and hold monthly

Evaluation System Study Session

meetings, mainly for managers, with the goal of “enhancing the level ofLecturer: Naoki Takekawa, Director, HR department
ENVIPRO HOLDINGS Inc.

managers.”

attachment to instill our corporate philosophy”, the president himself briefs small

Given our increases in the number of Group companies and personnel, we held a

Employee Satisfaction Survey

groups on our corporate

study session to go back to the basics and cultivate a deeper understanding ofDifferent people define “satisfaction” in different ways. Nevertheless, we

philosophy about three

how the evaluation system works. We have introduced an evaluation system that

conduct this survey each year in the spirit of “sharing benefits and joy with thetimes a month. We plan

clearly differentiates between different types of employees. This evaluation systempeople who we spend time with.” We believe the president and other members

and implement thesedrives higher motivation and employee retention, which in turn leads to the growthof the management team need to maintain a keen interest in the daily thoughts

sessions both for newof the company as employees work together with enthusiasm.

and feelings of our employees through questionnaires and interviews in order torecognize that there are many things we are unaware of and gaps in awarenessemployees and for people
who have attended thesebriefings in the past.

Group Personnel Expenses
Corporate philosophy briefings are alsoavailable on video.

between our employees and the people we ask for help from on a daily basis.
¥5(Billions of yen)billion5

Number and Percentage of Directly Hired Employees Attending
Fiscal year

Participants

Directly hired
employees

Percentage
attending

2020

22

562

4%

2021

48

583

8%

2022

235

617

38%

Do you feel the joy of personal growth?

¥4

2018

billion

4

2018
2019

3

2019
2020

¥2

2

billion

2020
2021
2021
2022

1
0

Business School
One-on-One Training (Held Seven Times)
Lecturer: Fumihiko Shimpo, Industrial Counselor, Advisor
ASTOCO Inc.

2022 0%

2013

2015

2017

2019

2021

2023

2025

2027 (Year)

Personnel expenses have doubled over the past decade, rising ¥2 billion.

Organizing Problems and Issues
Lecturer: Yukimi Tsuchiya, Advisor, ASTOCO Inc.

20%

40%

“sometimes” 40%
0% “Always” or
20%“Always” or “sometimes”

80%

100%

“Infrequently”
60% or “never”80%

60%

100%

“Infrequently” or “never”

To what extent to you share the corporate philosophy?
2018

For companies to continue producing results over the medium to long term,

We held a study session themed on “methods of structuring and leading to the

2018
2019

they must first build a foundation of trust. The role of managers is to support

solution of various problems by combining common causes and backgrounds.”

2019
2020

the growth of each individual; this is the purpose of one-on-one training.

Every fiscal year, each department within the Group prepares its own action plan.

Through one-on-one training, we are working to improve the psychologicalParticipants learn how to identify, recognize, and share problems within theirsafety of our employees, foster a culture of retention and build an environment

departments, clarify what issues need to be addressed to make improvements andthat encourages challenge. In other words, we are looking to build a culture

find solutions, and how to take concrete actions and incorporate them into actionthat embraces the will to take on challenges and permits failure.

plans. The implementation plan, which includes a time line and is shared in a

We will continue to conduct one-on-one training in fiscal 2022.

tangible form, also contributes to a shared awareness and a sense of participation.

2020
2021
2021
2022
2022 0%
0%

20%

40%

60%

80%

“Greatly” or“to some degree”
20%
40%“Mostly
at all”
60%not” or “not80%“Greatly” or “to some degree”“Mostly not” or “not at all”

100%
100%

38

Sustainability Strategy

SocialBusiness

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Promoting Diversity

The ENVIPRO Group aims to create a psychologically safe organization byembracing and recognizing individual diversity.
By promoting diversity, we strive to build a “platform” filled with goodquality energy where all employees work energetically and provide
opportunities for each employee to maximize his or her abilities, which willlead to “increased productivity” and “retention”.
We grow in an environment where we can share the same goals, see
things from multiple perspectives, and voice different opinions.
The Group will promote diversity in order to expand solutions to social
issues. This is the very essence of the Group’s business.

Director Hiroko Nomura
Holds Two Diversity
Promotion Seminars
The Group held a seminar on diversity
promotion for managers, with Hiroko Nomura,director, as the lecturer. The Gender Gap Index
released by the World Economic Forum inMarch 2021 ranked Japan 120th out of 156 Hiroko Nomura
countries. Although the country is rising in (Appointed director
September 28, 2022)
some categories, its overall ranking is
declining. This result demonstrates the slow pace of change in Japan,
while other countries are accelerating their efforts toward gender equality.
The same is true at the ENVIPRO Group. All employees need to be given
opportunities to grow and build confidence by breaking out of their shelland accumulating experience, regardless of gender, while monitoring andrecognizing their life events (such as growing children).
This seminar provided an opportunity for each participant to rethink about
unconscious biases in individuals, in daily work, and in organizations.
In response, we launched a new initiative. For the first time, we conducteda one-month on-site training program for new-graduate female employees
at one of the Group’s operating companies. We will continue to promote
diversity in the aim of creating a working environment that is comfortablefor everyone.

Non-Japanese Employees
In a new initiative, ECONECOL Inc. has
welcomed three Vietnamese technicalintern trainees.

Non-Japanese:employees

26

Employment of People with Disabilities
The Group has received a special exception for affiliated subsidiaries.
Group company SYN ECO Inc. promotes
Employees with:the employment of people with disabilities disabilities
throughout the Group. This includes
making some tasks more conducive to Employment
:
%
ratio
handling by people with disabilities.

20

3.84

Number and Percentage of Employees
Taking Childcare Leave:

Women :

Naoko Horikawa
Manager, Legal Section
ENVIPRO HOLDINGS Inc.

Vietnamese trainees Nam, Hoan, and Thi

Men

Rewarding Work That I Can Do with My Own
Discretion

2 (17%)

Percentage of female employees
returning to work after taking
childcare leave:

3 (100%)

Number of employees using theshorter working hour system forchildcare:

I am excited to be assigned to managerial
position and to have a much wider range oftasks. Of course, the more discretion I am
given, the more responsibility I have, but I am
able to make more of my own decisions andproceed with work based on my own initiative, which makes my job moreenjoyable. I believe in the importance of autonomy and openness in teambuilding within my division. The legal department must use its expertise tosupport the company, and each member of the department needs to takeresponsibility for the matters entrusted to them. That being said, there is alimit to what an individual can do, so we need to create teams that benefit
from active communication, which in turn generates better ideas.
Being in a managerial position has brought my work closer to the core of
the company, putting me in closer contact with the management team anddepartmental managers. I find it very rewarding to use my expertise andexperience to provide support in important matters such as business
partner contracts, disputes, and new business.

Percentage of Female Managers

80%

Permanent
employees

100%:

Targets
Fiscal year ending June 2024

Female :managers

1.5 times(Compared with end-June 2021)

Men*As of end-June 2022

In the Group, 17% of eligible men were taking childcare leave at the end ofJune 2022, below the percentage for women. We are working toencourage male employees to take childcare leave.

393 (79%)
Women : 105 (21%)
Men:Managers
Women :*As of end-June 2022

74 (93%)
6 (7%)

Fiscal year ending June 2026

Female :managers

2.0 times(Compared with end-June 2021)

39

Sustainability Strategy

SocialBusiness

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Working Actively to Contribute to the Community

Mamafes MatsumotoSponsoring the Shimizu S-Pulse Elementary
School Children’s Invitational Program

SYN ECO Inc. supports the activities of the Mamafes Matsumoto Executive
Committee. This committee is a voluntary organization consisting of people
in the city of Matsumoto who are working and raising children. At thecompany’s head office and SYN ECO Plaza Azumino, we collect usedpicture books, books on childcare, and children’s books from members of
the public and distribute them to people who need them at a Mamafes
event called the Picture Book Giveaway. In fiscal 2021, we collected andgave away more than 2,200 books during the event period. In fiscal 2022,
the collection period will not be limited; we will be collecting books on an
ongoing basis.

As part of its sports promotion efforts, ENVIPRO HOLDINGS Inc. has become
the top partner of the Shimizu S-Pulse Elementary School Invitation Program in
Eastern Shizuoka Prefecture. This program led to the invitation of five hundredpairs of children attending elementary school and their parents (1,000 people)
in the eastern part of Shizuoka Prefecture, as well as one parent or guardian
per pair, to a Shimizu S-Pulse home match. We will continue to support theactivities of Shimizu S-Pulse, thereby encouraging the dreams of local children
and contributing to community development in the region.

Interviews with Students from Fujinomiya
Higashi High School
we collect waste from boxes set up by our corporate sponsors and at
Mottainai BOX stations in Nagano Prefecture. Some of the profits are
returned to the community and Matsumoto Yamaga FC. The company also
donates some of the proceeds from the Mottainai BOX in Azumino, Nagano
Prefecture. For each specified home appliance (refrigerator, washingmachine, air conditioner, or TV) brought to SYN ECO Plaza Azumino, we
donate ¥50 to the Nagano Prefectural Children’s Hospital every December.

Creating an Environment to Provide Local
Employment of People with Disabilities andTraining People with Disabilities.
Providing a Cooperative Structure toContribute to Local Communities
Mottainai BOX and Giving Back to theCommunity
SYN ECO Inc. is working with the Yamaga Supporters’ Association on the
YELL Project. YELL stands for Yamaga Eco-Logy Link and the idea of yelling
encouragement to the Matsumoto Yamaga Football Club and to the people
in the hometown area through environmental conservation activities, mainly
resource collection. On match days, we collect waste paper from thestadium, as well as waste paper brought in by supporters. On other days,

Local residents with disabilities sort resources collected in SYN ECO’s
Mottainai BOX. ASTOCO Inc.’s pre-employment transition support programfacility is located on the same site. By offering training that closely
resembles the actual work performed at the company, we provide anenvironment that allows people with disabilities to understand what
employment would be like. This approach helps them to go about theirtraining and work with peace of mind. By collaborating with local people
who are in second careers, as well as lecturers, we foster local awarenessof and support for people with disabilities.

As part of Shizuoka Prefectural Fujinomiya Higashi High School’s cultural
festival, students from the school interviewed Fujinomiya-based ENVIPROHOLDINGS Inc., ECONECOL Inc. and VOLTA Inc. about our business andcommunity relations. In addition to the interview, we provided plant andoffice tours.

40

ESG Initiatives

Governance
The ENVIPRO Group operates a corporate
governance system based on its corporate
philosophy. The system aims to foster sustainablecorporate growth and enhance corporate value overthe medium to long term.

G overnanceSustainability Strategy

GovernanceBusiness

ESG Initiatives

Promoting Corporate Governance Based on the Corporate Philosophy

Basic Approach to Corporate GovernanceCorporate Governance Structure

The ENVIPRO Group recognizes that instilling its corporate philosophy
throughout the organization is the most important aspect of governance,
and that the strengthening of governance that brings discipline toorganizations to sustain growth is a key issue in management. Aiming forsustainable growth and the enhancement of corporate value over the
medium to long term, in 2021 the Group disclosed a medium-term
management plan (Sustainability Strategy), which will serve as the basis for
History of Corporate Governance2010

Sustainability Report 2022

Financial and Company Data

Established current ENVIPRO HOLDINGS Inc.
Introduced executive officer system

General Meeting of Shareholders
Appointment ∙ Dismissal
Audit ∙ Supervision

Board of Directors
Advising

Supervision

Proposals

Appointment ∙ Dismissal

Audit and Supervisory
Committee

Selection

Appointment andRemuneration Committee

Management Committee Supervision

ReportReportConsultation

Dismissal
Supervision

Established Internal Control Committee

ReportRepresentative Director

Internal Audit OfficeInternal Control Committee
2013

Listed on the Second Section of the Tokyo Stock Exchange

2015

Established the Internal Control Basic Policy

2016

Established the Appointment and Remuneration Committee

Instruction

Consultation

ReportSustainability Committee

Instruction

Accounting audit
Instruction

ReportDepartments, Group companies
2017

Established the Audit and Supervisory Committee

2018

Listed on the First Section of the Tokyo Stock Exchange

2019P erformed early delivery of convocation notices (over three
weeks in advance)

2021

Disclosed a medium-term management plan (Sustainability
Strategy)
Changed the Sustainability Committee to a key meeting bodyfor promotion of the medium-term management plan

Report uman Resources andH
Labor Reform Committee
Operations Reform
Committee

management decision-making. We will continue to promote our mediumterm management plan (Sustainability Strategy) to enhance our economic,
environmental, and social value, and strengthen our governance to sustain
these values.

Board of Directors

Collaboration

Instruction

E nvironmental & Safety
Promotion Committee
IT Promotion Committee

Audit corporation

ReportReport2011

Collaboration

Met 15 Times in Fiscal 2022

The company’s Board of Directors has 12 members, of whom eight areoutside directors (including four members of the Audit and Supervisory

Internal audit

Committee). In principle, the board meets monthly. The Board of Directors
makes decisions on matters important to the execution of the company’sbusiness, and oversees the execution of directors’ duties. In fiscal 2021, theBoard of Directors met 15 times and had a director attendance rate of 100%.
At meetings of the Board of Directors, the president acts as chair torespectfully draw out the opinions of directors, not from the viewpoint ofshort-term benefits, but rather to discuss even seemingly irrelevant policies
or measures and other matters from the perspective of medium- to longterm business growth.

42

Sustainability Strategy

Business

Reasons for Selection of Skill Matrix Items
 nder our corporate culture, we have selected the item in line with ourUbelief that the most important issue for long-term profits and governance isto ensure that our corporate philosophy permeates every corner of ourorganization.
In the area of production technology, we have adopted the item that reflect
our need for knowledge of our business areas and production technology
to expand our plants and introduce new technology in line with ourbusiness investments.
With respect to business execution related to our CN (carbon neutral) andCE (circular economy) efforts, we had selected items reflecting our need forknowledge of CN realization and CE business development.

Audit and Supervisory Committee
Met 14 Times in Fiscal 2022
The Audit and Supervisory Committee consists of four 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 understand thesituation within the company, including the management system and theexecution of business. The Audit and Supervisory Committee also meetsregularly with the president and representative director to exchange views
and maintain communication on issues that the company should address, thestate of the environment for auditing by the Audit and Supervisory
Committee, and other important matters pertaining to auditing. In order tomaintain close collaboration with the Internal Audit Department and theaccounting auditor, the Audit and Supervisory Committee holds regular liaison
meetings with these and otherwise engages in exchanges of information toenhance auditing functions. In addition to the Internal Audit Office, thecommittee also collects information from the internal control departments to
conduct more thorough audits.

Appointment and Remuneration Committee
Met 3 Times in Fiscal 2022
The Appointment and Remuneration Committee is composed of fivemembers: the representative director and four outside directors who are
independent senior executives. As an advisory body to the Board of Directors,
it conducts preliminary deliberations on the nomination of director candidates(excluding those who serve 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

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Senior Executive Skill Matrix
Position in thecompany

Name

Years inposition

President,
Tomikazu Sano
Representative Director

12

Senior Managing
Director

Fumikatsu Sano

12

Managing Director

Kozo Haruyama

7

Director

Naoki Takekawa

3Outside Director

Yoshiharu Murakami

12

Outside Director

Kyuchan Hwang

12

Outside Director

Keiji Miyaki

4

Hiroko Nomura

Newly
appointed

Outside Director

Outside Director (Audit andShoji Ide
Supervisory Committee)

11

Outside Director (Audit andTakashi Wada
Supervisory Committee)

8Outside Director (Audit and Hiroshi Kamiya
Supervisory Committee)

1

Outside Director (Audit and Kiyoshi Shinohara
Supervisory Committee)

Newly
appointed

Managing Executive
Officer

Akiko Ishii−

Executive Officer

Norihiro Nakasaku−

Executive Officer

Kenta Imai−

Executive Officer

Yasushi Sugiyama−

Corporate
cultureManagement Production
strategytechnologyof the Audit and Supervisory Committee. It may also include some executive
officers, department managers, and members of Boards of Directors of groupcompanies, as required for matters to be deliberated. The Management
Committee generally meets once a month. to make decisions on specificmatters important to the execution of the company’s business and on thetimely disclosure of information.

Sustainability Committee
Met 12 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 (Sustainability Strategy) that forms our strategy forachieving sustainable development for both the group and society. As anorganization assisting decision-making by the representative director, it
flexibly and actively discusses and examines the status of strategy promotion

Overseas

CN/CE

Finance/Legalaccounting/taxation compliance

Human
resources

IT

IR

Expertknowledge

Economics

Diversity
promotion

Procurement
operations

Policyand future directions, including new business and M&A, from a long-term
perspective.

Internal Control Committee
Met 13 Times in Fiscal 2022
The Group has an Internal Control Committee chaired by the company
president. This Committee consists of four subcommittees: theEnvironment and Safety Promotion Committee, IT Promotion Committee,
Human Resources and Labor Reform Committee, and Business Operations
Reform Committee. The committee identifies risks, formulates
countermeasures, and builds and operates internal controls across theGroup, including awareness-building activities. The committee enables
presidents of group companies and members of subcommittees to set
policies, make decisions, and report on important compliance matters,
litigation and legal risk matters, and other matters that could havesignificant impacts on management.

43

Sustainability Report 2022

Financial and Company Data

Sustainability Strategy

Business

ESG Initiatives

Financial and Company Data

History of the ENVIPRO Group

Sustainability Report 2022

2023 - 2050

2000 Apr. Established Fuji Eco Cycle Co., Ltd. as a joint venture with Fujitsu General Limited.

Our vision looking 30 years ahead
Toward the establishment of a fully
decarbonized societyJul. Renamed SANO MARUKA SHOTEN Co., Ltd. to SANO MARUKA Co., Ltd.
2001 Jul. Launched plastic recycling business.
Aug. Established refuse paper and plastic fuel (RPF) plant.
2003 Dec. Established ARBIZ CORPORATION as a joint venture with USS Co., Ltd.
2004 Mar. Established corporate philosophy.
Nov. 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.

Listing on the Tokyo Stock Exchange,
an industry first2016 - 2022
Boldly tackling the battery
business

2006 Jul. Established 3WM Co., Ltd. to engage in the used car and maintenance parts export
business.
2007 Jul. Renamed SANO MARUKA Co., Ltd. to ECONECOL Inc.
2008 Feb. 3WM Co., Ltd. established JAPAN COAST USED CARS AND SPAREPARTS TRADING (UAE).
Jun. Acquired a 100% stake in Kuroda Recycle Co., Ltd., which engages
in the resource recycling business, making it a subsidiary.
3WM Co., Ltd. established 3WM CHILE IMPORT EXPORT LIMITADA(Chile).

The company’s first generation, whobought a pile of auctioned properties
from a closed foundry2010 - 2015
Establishment of
ENVIPRO HOLDINGS Inc.

Jul. Reorganized into SANO MARUKA SHOTEN
Co., Ltd. with capital of 20 million yen.

1989

Jul. Began management based on ourManagement Plan.

1992 Aug. Launched trading business.
1997 Jun. Installed large shredder at the head
office plant.

Oct. Renamed ECOMMIT Inc. to ASTOCO Inc.
2017 Apr. Invested in MINE BIOMASS SYNERGIES PTE. LIMITED (Singapore) toachieve stable procurement of wood biomass fuel.

1950 Mar. Katsuyoshi Sano (father of Tomikazu Sano,
President of ENVIPRO HOLDINGS Inc.)
established SANO MARUKA SHOTEN.
1978

2016 Apr. Established Bright Innovation Co., Ltd. to develop the environmental
management consulting business.

Sep. Transitioned to a company with an audit and supervisory committee.
2018 Jan. Established VOLTA Inc. to engage in the Lithium-ion Battery Recycling
Business.

2000 - 2009
Toward Japan and toward theworld
A succession of groupdevelopments

2010 May Established ECONECOL HOLDINGS Inc. (current ENVIPRO HOLDINGS Inc.) toeffect a transition to a pure holding company.
Jul. Renamed ECONECOL HOLDINGS Inc. to ENVIPRO HOLDINGS Inc.
2011 Apr. Acquired a 100% stake in Recycle Support Service LLC (present SYN ECOInc.), making it a subsidiary.

2013 Sep. Listed on the Second Section of the Tokyo Stock Exchange.

2021 Oct. ECONECOL Inc. acquired a 100% stake in Fujimi BMS Co., Ltd. (currently
ECONECOL Inc. Wood Recycling Center), a wood recycling company, andmade it a sub-subsidiary.

Dec. Acquired a 100% stake in Toyo Rubber Chip Co., Ltd., which engages inwaste rubber recycling and manufacturing/marketing of rubber products,
making it a subsidiary.
Installation of large shredder

Oct. ECONECOL Inc. established European Representative Office (U.K.).
2020 Apr. Succeeded the trading business of ECONECOL
Inc. and established NEWSCON Inc.

2015 Feb. ECONECOL Inc. established Ho Chi Minh Representative Office (Vietnam).

A great leap forward
A foundation for businessexpansion

Jul. Joined the RE100 initiative.
2019 May Endorsed the TCFD Declaration.

2012 May 3WM Co., Ltd. established 3WM UGANDA LIMITED (Uganda) (withdrawal via
business reorganization in September 2021).

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

1950 - 1999

Jun. Listed on the First Section of the Tokyo Stock Exchange.

2022 Mar. ECONECOL Inc. absorbed Fujimi BMS Co., Ltd. (currently ECONECOL Inc.
Wood Recycling Center)
May Moved listing to the Prime Market of the Tokyo Stock Exchange.

45

Sustainability Strategy

Company Profile

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Address Head Office

Company name

ENVIPRO HOLDINGS Inc.

Representative

Tomikazu Sano, President and Representative Director

87-1 Tanakacho, Fujinomiya-shi, Shizuoka

EstablishedMay 21, 2010418-0075 JAPAN

Capital1,524,830,656 yen

TEL: +81-544-21-3160 FAX: +81-544-21-3163

Business

Management and operation of affiliated subsidiary companies andassociated work

Tokyo OfficeGroup companies

Thirteen consolidated subsidiaries (including second-generation
subsidiaries), two equity-method affiliates

Kyobashi RK Building 9F, 2-5-15 Kyobashi, Chuo-ku, Tokyo,

Listing

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

TEL: +81-3-6280-3938 FAX: +81-3-6264-4361

104-0031, Japan

Group Companies
Resource Circulation Business
Affiliates accounted for under the equity method

Affiliates accounted for under the equity method

株式会社

東洋ゴムチップ
ECONECOL Inc.

Kuroda Recycle Co., Ltd.

SYN ECO Inc.

Toyo Rubber Chip Co., Ltd.

ARBIZ Corporation

Fuji Eco Cycle Co., Ltd.

ECONECOL Inc. engages in the resource
recycling business, centered on recyclingof metals, plastics, and waste.

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

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

A joint venture with USS Co., Ltd., ARBIZ
Corporation engages in a recycling
business that adopts a unique system
for shredding and sorting scrap carsand other waste, turning it back into
resources.

A joint venture with five household
appliance companies, including FUJITSU
GENERAL LIMITED, Fuji Eco Cycle Co., Ltd.
engages in a home appliance recycling
business to create a sound material-cycle
society that balances the environment andthe economy.

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

14-24 Showa-cho, 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

Lithium-ion Battery Recycling
Business

Global Trading Business

Other Business

Welfare Service Business for
People with Disabilities

Environmental Management
Consulting Business

NEWSCON Inc.

3WM Co., Ltd.

VOLTA Inc.

ASTOCO Inc.

Bright Innovation Co., Ltd.

With a view to becoming “a company thatbrings the world closer to us,” NEWSCON
Inc. contributes to international resource
circulation through global distribution andsale of ferrous scrap, nonferrous metals,
and biomass fuels.

3WM Co., Ltd. supplies high-quality
Japanese used cars and maintenancep a r t s g l o b a l l y. I t a l s o p r o m o t e s
global-scale reuse of used cars andmaintenance parts through international
distribution of used maintenance parts.

VOLTA Inc. performs collection andrecycling of nickel, cobalt, and otherminor metals from lithium-ion batteries
and nickel-metal hydride batteries, aswell as recycling of used casings.

ASTOCO Inc. engages in business that
supports people with disabilities inacquiring knowledge and skills, gaining
lifestyle stability, and interacting withsociety, to aid in finding suitable workand becoming self-supporting.

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

Aichi Chikko Bldg. 2F
2-3-5 Hama, Minato-ku, Nagoya-shi, Aichi,
455-0036
TEL: +81-52-659-5200
FAX: +81-52-659-5208

Bright Innovation Co., Ltd. engages in
consulting services that support theplanning of environmental strategies
and CO2 reduction strategies, alongwith business that proposes solutions
including the introduction of renewableenergy.

55-1 Ohno, Fuji-shi, Shizuoka, 417-0848
TEL: +81-545-67-2522
FAX: +81-545-67-2523

2932-15 Niimura, Matsumoto-shi, Nagano,390-1241
TEL / FAX: +81-263-31-6098

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

46

Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Financial and Non-Financial Highlights
Net sales

Ordinary profit/ratio(Billions of yen)

57.3

60.0

Financial(Billions of yen)

7.5

Lithium-ion Battery
Recycling Business

4.16

¥

6.0

Other Business¥1.3 billion

0.4 billion
Resource Circulation
Business

40.9

37.4

36.3

33.8

3.0

4.5

3.1

2.0

1.31

2.8

1.14

1.0

10.0

¥

2.50

3.5

30.0

0.0

Sales composition by segment

（%）

4.0

20.0

20.3 billion

3.0

0.93

1.5

Global Trading Business

6/20186/20196/20206/20216/2022ENVIPRO Group

15

Group companies

Non-financial

7.3

5.0

6.1

50.0

40.0

Ordinary profit (left axis)
Ordinary profit ratio (right axis)

498

Number of employees(consolidated) (regular employees)

14 locations
Yards

6/20196/20206/20216/2022

588,000 tons

Nonferrous
metals

17,000 tons

Gold, silver,
and copper
sediment
sludge*3,000 tons

Rubberproducts

12,000 tons

RPF and otherfuels, rawmaterials forpaper, etc.

56,000 tons

Black
mass*

Other

26,000 tons

Ferrousmetals

4 locations

53
Trading countries

42.9 billion

Precious metals collectedGold (left axis)●貴金属回収量
100

845

800 tons

70(Silver, kg)

1,071

1,069

739

Silver (right axis)

1,244(Gold, kg)

75

1,200

900

71

61

61

53
Total

706,000 tons

* Gold, silver & copper sediment sludge: A mixture of gold, silver, copper, platinum, and palladium* Black mass: A concentrated sludge of cobalt and nickel, containing carbon

Overseas sites¥

06/2018Amount handled by type10 sites
Domestic plants

0.0

Resource
recovery rate

94.4%

50

600

25

300

0

6/20186/20196/20206/20216/2022047

Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Locations (Domestic)Group
companies

Domestic sites

15

Domesticplants

10

Yards

48

14

Shipping ports

Head office =: Ferrous scrap yard
: Nonferrous scrap yard
: Used car yard

Maebashi (Gunma): Waste paper yard

Toyo Rubber Chip Co., Ltd.
Matsumoto (Nagano)

SYN ECO Inc.
ASTOCO Inc.

Hakodate (Hokkaido)

Azumino (Nagano)

Saitama (Saitama)

SYN ECO Inc.
ASTOCO Inc.

ASTOCO Inc.

: Port of Hakodate (Hokkaido)

Kuroda Recycle Co., Ltd.
: Niigata East Port (Niigata)Tokyo: Port of Naoetsu (Niigata): Port of Imari (Saga)

ENVIPRO HOLDINGS Inc.

Nagoya (Aichi)

3WM Co., Ltd.
ARBIZ Corporation

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

: Port of Funabashi (Chiba): Chiba Yard (Chiba)

Osaka (Osaka)

3WM Co., Ltd.

: Port of Kawasaki (Kanagawa)

Yokohama (Kanagawa)

3WM Co., Ltd.
Fujinomiya (Shizuoka)

Kumamoto (Kumamoto)Toyo Rubber Chip Co., Ltd.

Hamamatsu (Shizuoka)

Fuji Eco Cycle Co., Ltd.
ECONECOL Inc.

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

VOLTA Inc.
ECONECOL Inc.
Shizuoka (Shizuoka)

ECONECOL Inc.

: Port of Tagonoura (Shizuoka): Port of Shimizu (Shizuoka): Port of Toyohashi (Aichi): Port of Nagoya (Aichi): Port of Kinuura (Aichi): Port of Nagoya (Aichi): Port of Amagasaki (Hyogo)

Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Locations (Overseas)

Overseas
locations

Sales sites for recycled resources

UK

Business sites for used cars

NEWSCON Europe Representative OfficeVietnam
NEWSCON Vietnam Representative Office

UAE

Chile

Japan Coast Used Cars andSpare Parts Trading

3WM Chile Import Export
Limitada

4

Trading
countries

53

49

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/