y
o
j
f
o
e
l
c
r
i
Make a c

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

02

Contents
02

Table of Contents / Editorial Policy

03

Corporate Vision

04

Message from the President

05

A History of Value Creation

06

Sustainability Strategy

The ENVIPRO Group has set "contribute to create a sustainable society" as its mission statement.

06
08

Value creation process
Initiatives to achieve the SDGs

This mission statement expresses how the group will contribute to society through business, and the group's reason for being.

09

Action Plan

It delivers a message of "Let's achieve this together" to colleagues who share this mission.

11

Resource Circulation Business

17

Global Trading Business

20

Lithium-ion Battery Recycling Business21

Other Business

23

ESG Initiatives

23
26
28

Environment
Society
Governance32

Corporate Data

32
33
34

Company profile/Introduction to group companies
Financial and non-financial highlights
LocationsContribute to Create a Sustainable Society

Editorial Policy
This sustainability report is issued by ENVIPROHOLDINGS Inc.
The report describes the corporate philosophy of the
ENVIPRO Group and our overall activities in
non-financial areas including business strategies,
environmental performance, and corporate
governance. Some business prospects, including
future plans, are also presented here.
Scope of report
The report presents the activities of ENVIPROHOLDINGS Inc. and the following nine subsidiarycompanies: ECONECOL Inc., NEWSCON Inc.,
3WM Co., Ltd., Kuroda Recycle Co., Ltd., SYN ECO
Inc., ASTOCO Inc., Toyo Rubber Chip Co., Ltd., BrightInnovation Co., Ltd., and VOLTA Inc.
Reporting period
July 2020 - June 2021 (The report covers some
activities and plans outside this period.)Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Make a circle of joy
Contribute to create a sustainable society
as a leading company of the resource
recycling businessWe collect and recycle unneeded items to be reborn as
resources, which circulate to support someone's social
life and lead to joy.
This is our joy as well, and the force that drives us toward
the future.
Our mission lies in continuing to fulfill our responsibilities
and in continually pursuing the resource recycling
business, which we have undertaken as our corebusiness since our founding.
As a group of leading companies in resource recycling,
the ENVIPRO Group is a needed presence. We areconvinced that our continued growth will lead to theachievement of a sustainable society.
"Make a circle of joy"
Together with all our stakeholders, we will continue tomake a loop of joy.
That is the hope of the ENVIPRO Group, and our promise
to the future.

Corporate philosophy
Creative Company
Engage in the ongoing creation of businesses thatsociety needs
Engage in everyday work in the spirit with which thecompany was established
Create new businesses in the spirit of the founder for
generations to comeEvery employee to exert efforts to become the leading
player of a business that suits them

Circular Company
Help others, get the best out of others, and share withothers to make a constant loop of joy
Help each other and lend a hand to others to make yourwork more pleasant
Use every material repeatedly, preserving their value foras long as possible
Share the profit and joy with the people you live with

Company pursuing virtue
Pursue the virtue of companies and people, in perpetuity
Don’t choose the easy path but choose the path which
serves others
Do what others don’t do by taking advantage of yourdistinctive qualities
Be grateful for your life and don’t be arrogant＊ Supervised by Yoshiharu Shimizu, Mirai Design Institute,
Enishiya
Established on March 20, 200403

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Message from the President

Working as one, our group will"contribute to create a sustainable society".

The world has begun rapidly moving in chorus toward the achievement of a decarbonizedsociety by 2050. In response to this movement, many large companies have launched
concrete initiatives toward decarbonized management. These efforts are beginning to go
beyond the companies concerned to reach throughout the supply chain, from suppliersto the final destinations of wastes. This, together with movements toward the circular
economy, is placing demands on the recycling industry to transform into a manufacturingindustry with decarbonized production processes.
Our company joined RE100 in 2018, and in 2020 declared a commitment to be carbon
neutral by 2050. We quickly undertook concrete initiatives toward those goals. At present,
we cover about 95% of the electricity used in our plants (Scope1, 2) through renewableenergy sources. As our CO2 emissions from electricity account for about 65% of total
emissions, we expect to reduce CO2 emissions by about 60% this year.
At the same time, the circular economy movement is pushing the industry to shift from thedomain of proper treatment of wastes, to become an industry versed in manufacturing.
This means acquiring capabilities on par with first-rate manufacturers, through Quality,
Cost, and Delivery date. Through the concept of QCDC, which further adds Carbon
neutral, our company will seek a new form of recycling industry suited to a decarbonizedsociety. We will transform into a manufacturer of materials derived from above groundresources (urban mines), and will achieve our mission of "contribute to create asustainable society".
Naturally, as we do so, we will thoroughly enjoy the challenge together all of ouremployees.
Always smile and work for keeps(The words of Professor Ko Hirasawa)

Forward, MYWAY forward.

Tomikazu Sano
President, Representative Director04

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

The forerunner of the next generation.
Tracing a path of enterprise, innovation, and challenge.
Our company was founded shortly after the war, shortly before Japan entered its period of high economic growth. We were convinced of the importance of resource recycling and environmental
business at a time when the terms "circular society" and "sustainable society" were not yet well-known.
We grew quickly through aggressive business development that was ahead of the times, and expanded our fields of activity around the nation and into the world. As a group of leading
companies driving the achievement of the circular economy, the ENVIPRO Group will continue to tackle our future-oriented mission of "contribute to create a sustainable society".

1950 - 1999

2000 - 20092010 - 20152016 - 2021

A great leap forward.
A foundation forbusiness expansion.

Toward Japan and toward
the world.
A succession of groupdevelopments.

Establishment of ENVIPROHOLDINGS Inc.

Boldly tackling thebattery business.

1950 Mar.

2000 Apr.

2010 May

2016 Apr.

Katsuyoshi Sano (father ofTomikazu Sano, President/CEO of
ENVIPRO HOLDINGS Inc.)
established SANO MARUKA
SHOTEN.

2000 Jul.
2001 Jul.
2001 Aug.
2003 Dec.
2004 Nov.

1978 Jul.

1989 Jul.
1992 Aug.
1997 Jun.

Reorganized into SANO MARUKA
SHOTEN Co., Ltd. with capital of
20 million yen.
Began management based on ourManagement Plan.
Launched trading business.
Installed large shredder at thehead office plant.

2006 Jul.

2007 Jul.
2008 Feb.

2008 Jun.

Established Fuji Eco Cycle Co., Ltd.
as a joint venture with Fujitsu General
Limited.
Renamed SANO MARUKA SHOTEN
Co., Ltd. to SANO MARUKA Co., Ltd.
Launched plastic recycling business.
Established refuse paper and plastic
fuel (RPF) plant.
Established ARBIZ CORPORATION
as a joint venture with USS Co., Ltd.
Established corporate philosophy.
Received Ministerial authorization asa resource recovery facility for
automobile shredder residue (ASR)
pursuant to the Act on Recycling, etc.
of End-of-Life Vehicles.
Established 3WM Co., Ltd. to engage
in the used car and maintenanceparts export business.
Renamed SANO MARUKA Co., Ltd. to
ECONECOL Inc.
3WM Co., Ltd.established JAPAN
COAST USED CARS AND SPAREPARTS TRADING (UAE).
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).

Established ECONECOL HOLDINGS Inc. (current
ENVIPRO HOLDINGS Inc.) to effect a transition toa pure holding company.
2010 Jul. Renamed ECONECOL HOLDINGS Inc. to
ENVIPRO HOLDINGS Inc.
2011 Apr. Acquired a 100% stake in Recycle Support
Service LLC (present SYN ECO Inc.), making it asubsidiary.
2012 May 3WM Co., Ltd. established 3WM UGANDA
LIMITED (Uganda) (withdrawal via businessreorganization in September 2021).
2013 Sep. Listed on the Second Section of the Tokyo Stock
Exchange.
2013 Dec. Established ECOMMIT Inc. (present ASTOCO
Inc.) to provide welfare services for people withdisabilities.
2015 Feb. ECONECOL Inc. established Ho Chi Minh
Representative Office (Vietnam).
2015 Dec. Acquired a 100% stake in Toyo Rubber Chip Co.,
Ltd., which engages in waste rubber recycling
and manufacturing/marketing of rubber products,
making it a subsidiary.

2016 Oct.
2017 Apr.

2017 Sep.
2018 Jan.
2018 Jun.

Established Bright Innovation Co., Ltd. todevelop the environmental management
consulting business.
Renamed ECOMMIT Inc. to ASTOCO Inc.
Invested in MINE BIOMASS SYNERGIES PTE.
LIMITED (Singapore) to achieve stableprocurement of wood biomass fuel.
Transitioned to a company with an audit andsupervisory committee.
Established VOLTA Inc. to engage in the
Lithium-ion Battery Recycling Business.
Listed on the First Section of the Tokyo Stock
Exchange.

Listed on the Tokyo
Stock Exchange,
an industry first* 2013 Second Section2018 First Section2018 Jul. Joined the RE100 initiative.
2019 May Endorsed the TCFD Declaration.
2019 Oct. ECONECOL Inc. established European
Representative Office (U.K.).
2020 Apr. Succeeded the trading business of ECONECOL
Inc. and established NEWSCON Inc.

Our vision looking 30 years ahead. Toward the2022 - 2050 establishment of a fully decarbonized society.

05

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

Sustainability Strategy 01

A History ofValue Creation

Sustainability
Strategy

Action Plan

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

The value creation process

Societal trends surrounding the ENVIPRO Group

Long-term trends

GX

Resource Circulation
Business

Green Transformation
Through advanced initiatives such as the transition to renewable energythat does not release greenhouse gases, green transformation willtransform industrial structure and the socio-economy, realize adecarbonized society without stagnation of economic activities, andconnect these to the further growth of companies and of society.

DX

Digital Transformation
Digital Transformation responds to drastic changes in society, makes
use of data and digital technologies, and transforms products, services,and business models on the basis of the needs of customers andsociety, while also transforming organizations, processes, corporate
culture, and business itself to establish competitive advantage.

Medium- and short-term trends

Environmental
issuesDevelopment of carbon neutrality + development of circular economy + Act on Promotion of Resource Circulation for Plastics

Rapid expansion of demand for green materials and rapid acceleration of the circular economy

demand for ferrous scrap due to
01 Increased
expansion of electric furnaces
Amid demands for decarbonization of the steel
manufacturing process, expansion of electric furnaces that
release 1/4 the CO2 emissions of blast furnaces is planned,
and demand for ferrous scrap is expected to increase.

Social issues

With the promotion of renewable energy andelectrification, the recycling of mineral resources
used in storage batteries and electrical appliances
will become necessary.

Waste plastics, which are produced, consumed,
and discarded in large quantities and havebecome a major social issue, face demands for
reduction in use and for resource recycling.

Post-COVID era (lifestyle & business style without face-to-face and personal contact) +US-China trade friction + shrinking working population

Identification ofmateriality

demand for nonferrous metalsof advanced resource
02 Increased
03 Promotion
and minor metals in line with electrification
recycling for waste plastics

01 Production and supply of green materials in the supply chain
02 To promote GX and DX in all processes of business activities
promote diverse work styles and accelerate automated operations
03 To
and the reduction of the labor required06

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

Sustainability Strategy 01

A History ofValue Creation

Sustainability
Strategy

Resource Circulation
Business

Action Plan

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

07

The value creation process

By building a circular economy model based on carbon neutrality,
we seek to enhance economic, environmental, and social value.

The ENVIPRO Group circular economy modelCa

The ENVIPRO Group
Medium-Term
Management Plan
Re
us

e

V IPR O G r oup

Eliminating
CO2 emissions
in the resource
recyclingprocess

Mission statement

Two environmental valuesly

Productionof greenmaterials

Carbon neutrality
Recycled materials
manufactured withcarbon neutrality
from above groundresources (wastes)

Su
U

Supply chain

se
Sal

Vision to be achieved through business activities

Green materials

es

M a n u f ac t urin

g

Pro

em
cur

Corporate philosophy

Recycled raw materials

ion
Waste disposal

About

pp

Recreating
resource
value

Reductionof wasteEN

The Foundation of the
ENVIPRO Group

Re
m
ing
tur
ac
uf
an

Abovegroundresources(wastes)ect

We aim to establish high-level
manufacturing processes thatreflect the elements of Quality,
Cost, and Delivery date, alongwith Carbon neutrality.

RecyclingC o llTransformation intoa manufacturer ofmaterials derived
from above groundresources throughlow-carbon
processes (QCDC)

r b o n n e u t r a lit yent• Technological capability• Sales capability• Distribution power• Collection capability• Inventiveness• Productive capacity• Trading force

01 Economic value 02 Environmental value 03 Social value

Contribute to create a sustainable society

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

Sustainability Strategy 02

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Initiatives to achieve the SDGs

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

Making every effort with every partner
As actions aimed at achieving the SDGs, we will advancecollaboration within the group, with companies in the supply chain,
and with administrative agencies, local communities, and citizens.
● Partnerships

Through participation in corporate groups and international
initiatives, we are expanding partnerships aimed at achieving asustainable society.
■ Japan Climate Leaders' Partnership (JCLP)■ RE100 ■ CDP*1 Scoring Partner■ Clean Ocean Material Alliance (CLOMA)*1 CDP: An international initiative for the disclosure of information on
climate change response

Contribution to theeconomy● No Poverty● Technological Innovation

1. By enhancing the efficiency and the profitability of businessactivities, including in the Resource Circulation Business, we
aim to increase employees' income and improve their qualityof life.
9. At the laboratories of ENVIPRO HOLDINGS Inc., we areworking on the development of technology to recover theminor metals cobalt and nickel with high purity from waste
lithium ion batteries through hydrometallurgy, and theenhancement of analysis accuracy, to contribute to thedevelopment of technology that will form the basis of acircular economy and a decarbonized society.

Contribution to ● Healthsociety● Education● Working Environment● Gender● Equality● Community Development

3. We prevent water and soil pollution and contamination byproperly managing scrap materials at our plants, which
comply with safety and environmental standards. We are also
promoting new ways of working, including telecommuting
and flextime, as measures to prevent the spread of COVID-19
and infection among employees.
4. We have set up a variety of training programs for improving
employees' skills, including a business school for employees.

5. We have introduced systems for telecommuting andshortened working hours for permanent employees, andprovide an environment that lets employees, including thoseraising children or performing family care, choose a working
style that fits them best.
8. ENVIPRO HOLDINGS Inc. began recruiting new graduates infiscal 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
our plants to ensure the safety of our employees.
10. Under programs such as the pre-employment transition
support program and the type B continuous employment
support program, we provide support that enables people
with disabilities to remain engaged in rewarding work.
11. Syn Eco Plaza Azumino contributes to community
revitalization and the development of a sustainable cities andcommunities through recycling and the creation of
employment, by collecting and recycling waste anddiscarded household items and by hiring people withdisabilities at its plant.

Contribution to the ● Climate Change

environment● Life below Water● Energy● Consumption and Production

7. We joined the RE100 *2 initiative in July 2018 and set a goal ofshifting to 100% renewable energy by 2030 for the energy
consumed in our business activities. In addition to switching
to renewable energy for the electricity used in our plants, weare installing solar panels on factory roofs and otherwise
introducing renewable energy power generation equipment.
We are also setting up palm kernel shell (PKS) stockyards inSoutheast Asia and are engaging in international distribution.
We will contribute to the supply of sustainable biomass fuelby expanding our involvement in products such as woodpellets.
*2 RE100: A name for 100% renewable electricity. This global initiative
brings together companies committed to procuring 100% renewableenergy for use in business.

12. We contribute to the circulation of limited resources and the
reduction of waste by engaging in the recycling business to
extract precious metals from metal scrap and waste, and theremanufacturing business to produce recycled raw
materials.
13. Under the goal we have set of achieving carbon neutrality by
2050, we will work to reduce CO2 emissions from ourbusiness activities. We also contribute to the reduction ofemissions across the supply chain through our mainstay
recycling and remanufacturing businesses. In May 2019, we
publicly endorsed the Recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD). We will
identify and evaluate opportunities and risks placed on ourbusinesses by climate change, integrate these into ourbusiness strategies, and engage in appropriate information
disclosure.
14. 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 thedevelopment of applications for recycled materials.

08Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other BusinessOverall view of our businesses Achievement of the circular economy that our group seeks

ESG Initiatives

09

Corporate Data

● Business results highlights

Resource Circulation BusinessNet sales (left axis)

Resource Circulation Business
By promoting the reuse, recycling,
and remanufacturing of waste andresources, we tackle the effective useof limited resources and the reductionof waste, while also manufacturing
recycled materials from waste to offer
new value to the world.

Ordinary profit (right axis)(100(100 million yen)

Re

so u

cu la t ion Bus
rc e Ci r

i n es● ECONECOL Inc.

● SYN ECO Inc.

● Kuroda Recycle Co., Ltd.

● Toyo Rubber Chip Co., Ltd.

s

Affiliates accounted forunder the equity method● ARBIZ Corporation● Fuji Eco Cycle Co., Ltd.

20.8 million yen)
20.0

160
140

142
129

120

10.2

15.0

127
9.2

10.0
107

100

5.4

5.0
0

0
Jun/2018 Jun/2019 Jun/2020 Jun/2021

Global Trading BusinessNet sales (left axis)

Reuse/Recycling/Remanufacturingm
Lithiu-ion Battery Rec
ycli
n

The
ENVIPRO
Group

sin

gB

ess

Along with the international
distribution of metal scrap
and other resources
generated in Japan andelsewhere, we bring used
items such as used carsand maintenance parts
from Japan into global
markets.

Global Trading Bu

Global Trading
Businessusin● NEWSCON Inc.

Welfare Service
Business for
People with
Disabilities

Environmental
Management
Consulting
Businessess● 3WM Co., Ltd.

(100

(100 million yen)

330

Lithium-ion Battery
Recycling Business

300

6.3

7.1 million yen)
7.0
310

293

6.0
280

270

4.6

4.3

5.0

257

4.0

240

Through the recycling oflithium-ion and otherrechargeable batteries, we
contribute to theestablishment of resource
recycling systems fornickel, cobalt, and otherminor metals, and to theeffective utilization oflimited resources.
● VOLTA Inc.

00
Jun/2018 Jun/2019 Jun/2020 Jun/2021

Lithium-ion Battery Recycling BusinessNet sales (left axis)

Ordinary profit (right axis)(100 million yen)(100
million yen)

3.5

3.6

4.5
3.0

2.4
0.9

1.2

1.5

0.3
0

0
-0.2

Other Business

Ordinary profit (right axis)

O t h e r B u s i nes s

-0.8

-1.2

-0.8

-1.5

Jun/2018 Jun/2019 Jun/2020 Jun/2021
Changes in business segment categories

We are developing a welfare service business that supports the independenceof people with disabilities in finding employment and in community life, as wellas an environmental management consulting business that provides support
for companies' environmental strategies and CO2 reduction plans.

● By integrating the Global Resource Circulation Business and the

Welfare Service Business for
People with Disabilities

Environmental Management
Consulting Business● ASTOCO Inc.

● Bright Innovation Co., Ltd.

Used Car-Related Business, which are overseas businesses, into
the Global Trading Business, we have strengthened synergies.
● We made the Lithium-ion Battery Recycling Business independent
from the Resource Circulation Business as a strategic business ofthe group, out of consideration for the content and scale of business,
including hydrometallurgy, and the alliances planned for the future.

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action PlanACTION PLAN

Battery to Battery
The dawn of a new era for lithium-ion batteries
The near-future depletion of cobalt, nickel, and other mineral materials
used in lithium-ion batteries (LIBs) is cause for concern.
For that reason, we are acting to strategically secure resources.
"Battery to battery".
This is a circular system for LIBs, premised on recycling.
The ENVIPRO Group has taken a major step in the direction ofbuilding a new circular economy model that integrates
LIBs production and mineral resource recycling.

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Becoming an indispensable presence in the battery industry
and supporting the next generation.
Today, the world is undergoing a major transformation aimed at securing mineral resources. The
recycling of LIBs is an important key to protecting the resources of Japan and the planet. This
recycling is also expected to grow further as a new pillar of business for the ENVIPRO Group. Our
repositioning of the Lithium-ion Battery Recycling Business from one of our resource recycling
businesses to an independent business segment from this fiscal year also indicates theimportance of this business. Underlying this is the rapid proliferation of electric vehicles (EVs). As
demand for LIBs takes off, the depletion of cobalt, nickel, and other raw materials in the near
future is cause for concern. Minor metals are produced in a limited number of countries, creatinga need to strategically secure domestic resources. The recycling of LIBs in Japan is currently at
the point of collecting the concentrated cobalt and nickel sludge called black mass, which isexported overseas. The outflow of this valuable resource to destinations overseas will be a greatloss for Japan. Preventing this calls for smelting black mass in Japan and supplying theremanufactured resources directly to domestic manufacturers. However, this entails
considerable investment and determination. In addition to the cost of plant construction cost, thelong time frame for realization of profit and the need to secure more material for smelting areamong the difficult barriers that confront commercialization at the present stage. At this rate,
many companies in Japan, including in the domestic battery industry and automobile industry,
will lose competitiveness. While advancing constant research to achieve advanced smelting, ourcompany is making steady preparations that include the planning of plant equipment and siting
and alliances with battery manufacturers. We aim to complete a hydrometallurgical plant andbegin full-scale operation in 2025, creating a new major pillar of business for the ENVIPRO Group.
With this, our group will tackle the challenge of becoming an indispensable presence in thebattery industry.
Black mass
A mixture of cobalt, nickel, and othersubstances produced from thebaking of lithium-ion batteries.
Through smelting, recycled cobalt
and nickel can be produced.

10

Table of Contents /Editorial Policy

Corporate Vision

Resource
Circulation
Business

Message from the
President

A History ofValue Creation

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Treatment/processing flow in the Resource Circulation BusinessAirplanes

Input

Sustainability
Strategy

Ferrous scrap

Automobiles

Electronic equipment/
circuit boards

Riddling ash

Small appliances

Plastics

Abovegroundresources(wastes)
Recycling
Materials are finely
shredded forrecycling.

Shredding
Separation· Automobiles· Photocopiers· Monitors· Microwave ovens· Vacuum cleaners· Smartphones, etc.

Materials for
cementproduction

Paper Waste, sponges, and light dust

Ferrous scrap isremoved from theshredded mixture using
strong magnetic force.

Magnetic separation

Dry specific gravity
separation

Agitation propellers

Air separation
Ferrous metals
Nonferrous metals

Incineration

Frictional forces are used tosort through the motion ofvibration and upward air flow.

Paper Waste,sponges, and light
dust are removed fromthe shredded mixture
using air separators.

Light particles
Liquid

RPF and other solid fuelare produced from waste.

Refuse paper and
Plastics plastic fuel (RPF) plant(lightweight)

Air
power

Heavy particles

Reuse

Wet specific gravity separation

Airplanes

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

ExtruderPlastic
pellets

Eddy current separation
Used cars

Falling non-magnetic metals are sorted
using magnetic repulsion.

Export overseas

RPF

Extrudedmaterials
Gold, silver & Copper Aluminum
copper sediment sludge

Materials manufacturers

Plastics
for fuel

Remanufacturing

OutputRecreating
resourcevalue= Shredded steel scrap= Copper= Aluminum= Gold, silver & copper
sediment sludge= Plastics for fuel= RPF (solid fuel)11

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Resource
Circulation
Business

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Promoting the recycling of diverse wastesof gold, silver & copper sediment
02 Collection
sludge from waste incineration ash

Engaging in the reproduction, processing,and sales of materials derived from above ground resources,
particularly recycling of metal resources

ECONECOL has engaged in years of research into technology and plantdesign for utilizing differences in the material properties of wastes, etc. toperform physical sorting into ferrous and nonferrous metals, gold, silver &copper sediment sludge, plastics, and other materials. Through theaccumulation of these technologies and knowledge, the company has further
evolved its sorting technology and has established technologies toconcentrate and recover fine gold, silver & copper sediment sludge evenfrom waste incineration ash seemingly free of precious metals, obtaining apatent in January 2019. Many local governments have disposed of waste
incineration ash in landfills, but an increasing number are working to recovergold, silver & copper sediment sludge from the ash, for the purpose ofrecycling as well as reducing the volume of landfill. The company is actively
developing business with local governments, aiming to expand its businessto a 30% share among local governments nationwide by 2028.
Amount of waste
incineration ash collected
Amount of thecollection of precious
metals from waste
incineration ash

Main business activities of ECONECOL Inc.
recovery
01 Resourcefrom urban mines

RPF

03 production

12

Corporate Data

02

Collection of gold, silver & copper
sediment sludge from waste
incineration ash

Reuse and04 recyclingof aircraft

Shredding and aof
05 recycling
mattresses

Value & Vision
Reproduction of materials derived from above groundresources through low-carbon processes.
Contribution to the achievement of a sustainabledecarbonized society by circulating high-quality,
low-carbon raw materials and fuels through society.

01 Resource recovery from urban mines

The precious metals and other metals contained in scrapped
automobiles and household appliances, known as "urban mines,"
provide many useful resources. However, advanced and complex
technologies for shredding and sorting are required to recycle suchcomposite materials. ECONECOL Inc. shreds these "urban mine"materials and applies combinations of magnetic force, air power, wet
specific gravity, dry specific gravity, color, and other separation
technologies to separate and concentrate individual materials andachieve higher levels of resource recovery. In recycling, the company
also engages in production using low-carbon processes thatsignificantly reduce CO2
emissions, and supplies
high-quality raw
materials and fuels
derived from above
ground resources.

Gold, silver & copper sediment sludge

3,122Gold (Au)tons

Silver (Ag)25.3 264.9
kg

kg

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Resource
Circulation
Business

03

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Evolution of technology and expansion into new business domains

06

RPF production

Wide-ranging one-stop services
The company offers one-stop services that range from collection,transport, and disposal of waste to dismantling of buildings. Normally, eachprocess requires separate outsourcing to multiple contractors capable ofperforming the work. ECONECOL is able to offer one-stop services thatspan waste removal and disposal, dismantling of structures, andremediation of contaminated soil after dismantling. This not only
contributes to increasing the recycling rate but also reduces burden andcosts on the customer.

Refuse paper and plastic fuel (RPF) is a solid fuel created by compressing waste plastics and paper waste materials
that are difficult to recycle, into a primary raw material. This environmentally friendly fuel features stable quality andcan significantly reduce CO 2 emissions compared with fuels such as coal. ECONECOL Inc. produces about 25,000
tons of RPF annually, continuously supplying this material primarily to paper manufacturers as boiler fuel. The plantcurrently runs at full capacity 24 hours a day, with plans to expand the number of purchasing companies and tofurther expand the production system in the future.
RPF (solid fuel)▼ One-stop service

04

STEP 01

Reuse and recycling of aircraft

Removal anddisposal ofwastesIn May 2019, ECONECOL won a tender for two sold-off government aircraft, and soldthe craft as reuse and recycling resources to a buyer in the U.S. for parts supply.
From this start, the company made a full-scale launch of the only aircraft reuse andrecycling business in Japan. The reuse and recycling market for aircraft currently
exists primarily in Europe and the U.S. However, reuse and recycling are generally
separated overseas as well, and transactions for used aircraft, and recycling fromwaste materials, are normally handled by different companies. Unlike the matter ofsimply selling the planes as used aircraft, know-how is required to determine theproper resource value of craft and their parts. The know-how that the company
cultivated through years of evaluating and appraising metals and other composite
materials has enabled one-stop support that spans asset evaluation and appraisal torecycling of unneeded waste materials. The company currently aims to expand its
business as a pioneer in aircraft reuse and recycling, through actions such as
launching the Aircraft Recycling Park Concept in alliance with airlines, leasing
companies, and other partners in Japan.

07

STEP 03

Dismantling ofstructure

Remediation ofcontaminated soil
following dismantling

Collaboration with shredderbusinesses nationwide
To meet customers' demands for metal scrap purchase, waste disposal,and construction demolition projects, ECONECOL works through nearby
shredder businesses that possess the same level of management andprocessing capacity as our company, and serves as a contact desk thatlets customers engage in proper disposal with peace of mind even in
geographically distant areas. Collaborating and gaining mutual trust also
leads to approaches to new business partners.

Aircraft reuse and recycling resources

05

STEP 02

Shredding and recycling of mattresses
From August 2021, ECONECOL began the breakdown and recycling of mattresses, which are designated as items
difficult to dispose of properly. Its high-performance shredders enable processing with minimum human
workload. The company also plans to develop dedicated shredders in collaboration with a shredder manufacturer.
In this way, the company is working to create means of working in a new business domain, including fully
accepting work spanning the collection and disposal of waste associated with hotel relocation and closure, tobuilding demolition.
Mattresses

08

Promoting responsible recycling
ECONECOL has obtained certification under the "R2 Standard", a program
managed by the U.S. Environmental Protection
Agency. It assesses responsible behavior byelectrical and electronic equipment recyclers,and mandates strict security measures. The
company sets up booths at barricades toperform strict inspection of entry and exit byrelated parties. As foreign-affiliated companies
preferentially deal with businesses that haveobtained this certification, we will continue totackle proper recycling and its promotion inaccordance with R2 certification.
Certificate of R2
Standard certification

13

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

Resource
Circulation
Business

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Aiming for local revitalization through recycling
to the global environment by
02 Contributing
recycling wood scrap

Developing a community-based recycling business

Wooden houses are commonly built in Hokkaido, and a large amount of wood
scrap is generated from demolition. Kuroda Recycle installed shredding
facilities in 2020 to reuse this wood scrap. The shredded wood scrap ismainly reused as cement raw fuel and a boiler fuel, helping to extend life oflimited resources.

focused on Hakodate City in southern Hokkaido

of dismantled wind power
03 Acceptancegeneration equipment
Hokkaido has many locations suited to wind power generation. The service
life of wind power generators is generally about 20 years, meaning thatremoval of aging equipment built around the year 2000 is gradually
increasing. Kuroda Recycle is able to shred and dismantle large wind power
generators using equipment that includes a 1,250-ton scrap shear. As thenumber of wind power generators that have reached the end of their service
life continues its upward trend, the company will broaden its horizons andaccept equipment throughout Hokkaido.

04 ASR Recycling Business
Main business activities of Kuroda Recycle Co., Ltd.

01

Comfortable Life
Support Business

03

Acceptance of dismantled
wind power generationequipment

02

Wood scrap recycling

04

ASR Recycling
Business

01

Expanding the Comfortable Life
Support Business
Kuroda Recycle Co., Ltd. launched its Comfortable Life Support Business in
2017, serving the area of Hakodate City and its environs in southern
Hokkaido, to make contributions to the community. In the first year, the main
focus was on issues in people's personal environments, such as clean-up
work targeting general individuals. From the following year, the company has
been expanding the work by offering one-stop support for dismantlingfishing boats, buildings, and other structures for business establishments,
local governments, hospitals, property receiver cases, and so on.

Value & Vision
One-stop handling of removal, treatment, andrecycling of unneeded goods. Contributing to
the promoting of regional resource recycling
and revitalization of the local economy.

Before clean-up

After clean-up

Kuroda Recycle engages in the business of recycling the automobile
shredder residue (ASR) that remains after used automobiles are shredded.
ASR contains metals that cannot be fully recovered in the shredding andsorting processes. Fine metal scrap is recovered through sorting equipmentusing specific gravity differences and air power (sorting by air table), among
other equipment. The company will continue its focus on research into
advanced sorting technology and process efficiency to contribute toimproved recycling rates for scrapped vehicles.

▼ Separation using an air table
Nonferrous metals and plastics are sorted by specific gravity through theactions of vibration and upward air flow.

14

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

Resource
Circulation
Business

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Regional circular and ecological economy through recycling

Developing a regional circular and ecological economy-oriented
recycling business centered on Matsumoto City andAzumino City in Nagano Prefecturehigh-quality intermediate
02 Achieving
treatment through large shredders
The head office plant, which has been operating on an RE100 basis sinceApril 2021, performs shredding and separation of metals and waste plastics
using the only large shredder in Nagano Prefecture. The company carried out
a major renewal project to expand its business partners and to processcomposite materials. Metals shredded and recycled by the company are sent
directly to manufacturers to be reborn as new products, while mixed metals
and nonferrous metals generated by the shredding process are recycled bygroup companies through re-sorting and other means, maximizing synergies
and economies of scale in the group. From the perspective of regional
resource recycling and decarbonization, the company will bear a role in"contributing to the region".

a specified home appliance
03 Launching
recycling business

Main business activities of SYN ECO Inc.
and recycling
01 Collectingof local resources

03

Recycling of specified
home appliances

02 Intermediate
treatment of waste
04

Local club teamcollaborative projects

Value & Vision
Promoting the effective use of regional resources
while promoting advanced efforts for the local
production and consumption of resources,
through activities aimed at creating "a regional
circular and ecological economic zone".

of local resources with
01 Collection
Mottainai BOX
SYN ECO Inc. has set up Mottainai BOX Stations as resource collection
sites at 21 locations in the Chushin district of Nagano Prefecture. This
includes four new locations added from the previous year, bringing theamount of resources collected in fiscal 2020 to 5,300 tons. Each stationcollects local resources (metals, waste paper, aluminum cans, and usedclothes) to create an environment that makes use by locals and collectionof containers easy. Collected resources undergo sorting, processing, andshipment at plants, to be reused as resources. Another feature of thecompany is that people with disabilities and general employees work
together at plants. The
company also donates a
portion of profits to the
local J2 League
Matsumoto Yamaga
Football Club and NaganoChildren's Hospital, as it
tackles local production
and local consumption by
returning locallygenerated resource value
and profits to the region.

In January 2021, SYN ECO began accepting specified home appliances(general waste) generated in Nagano City. This had its start in theacceptance and recycling of specified home appliances damaged by anatural disaster in the Hokushin area of Nagano Prefecture in 2019. The
activity has been praised as an effective initiative for regional resource
recycling. In FY2020, acceptance reached 6,500 units (including those fromdisaster damage in Nagano City).

04 From PET bottles to uniforms

In January 2022, SYN ECO will begin a project to create uniforms for matchvolunteers from PET bottles collected at home games of the Matsumoto
Yamaga Football Club. This multi-year initiative marks an evolution of the
YELL Project launched in 2013 to eliminate disposal costs for wastes fromthe stadium, and will form a part of projects to recycle local resources.
Looking ahead, the company will collaborate with materials manufacturers,
final goods manufacturers, and other partners as it works toward theconstruction of "a regional circular and ecological economy zone" thatrecycles wastes generated in the prefecture and returns these to local
communities.

15

Table of Contents /Editorial Policy

Message from the
President

Corporate Vision

Resource
Circulation
Business

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

From waste materials to high-quality recycled materials

Toyo Rubber Chip Co., Ltd.

Manufacturing rubber chips from recycled materials
and developing wide-ranging of products used inpublic facilities

02 Contribution to a circular society
Toyo Rubber Chip has been active in the development of rubber recycling forabout 80 years. Rubber chips, made from waste tires and products
generated from rubber manufacturing processes in plants, are used ascushioning material for filling artificial turf at sports grounds, as well as
paving material for parks and sidewalks. Rubber powder, made from finely
shredded waste tires, is used in industrial finished goods such as a tire filler
and automobile brake linings. In this way, recycled rubber processed by ourcompany is used in many fields. Utilizing technologies that we have built up
over many years, our company will continue to actively develop
recycling-related finished goods. In collaboration with suppliers, we are
currently advancing initiatives to establish a circular model that collects andremanufactures rubber waste material in a closed loop.

▼ Rubber recycling process

RE100
Toyo Rubber Chip Co., Ltd.
Classification

Main business activities of Toyo Rubber
Chip Co., Ltd.

01

02

03

Manufacturing blackrubber mulch fromwaste rubber

Manufacturing color
rubber chips fromsynthetic rubber

Making rubber
finished goods used at
public facilities, etc.

01 Toward the achievement of a safe society
Toyo Rubber Chip Co., Ltd. manufactures color rubber chips from synthetic
rubber, offering a wide range of colors that accommodate buildings andstructures of diverse design. At the parks, school grounds, kindergartens,
and other places where children play, color rubber chips serve ascushioning material that reduces the risks of fatal injuries from falls. The
company's Omni Pedestrian Rubber Panels, used as a material at railroad
crossings, feature outstanding elasticity and durability, prevent slips, andresist corrosion, assisting safety at pedestrian passageways. The Vehicular
Clearing Posts launched this year use color rubber chip molded products
to indicate clearances between railway cars. They ensure good visibility
over a long period with little weathering-related fading, contributing tosafety in railway operation.

Value & Vision

Shredding
Removal of steel

Purchase of waste
tire chips fromintermediate
processors

Black rubber mulchBlack rubber powder

Artificial turf field

Use in industrial
products● Tire filler● Brake material

TOPIC

Low-carbon products manufactured at RE100 plants

From May 2019, Toyo Rubber Chip has operated an RE100
plant, switching to 100% renewable energy sources forelectricity supplied to the plant. This has enabled the reductionof CO2 emissions from manufacturing processes and the
manufacturing of products with low environmental impact.

Achieving a circular economy that converts
rubber offcuts into products throughlow-carbon processes at RE100 plants.
Omni Pedestrian Rubber Panels

16

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

GlobalTrading Business

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

ESG Initiatives

Corporate Data

The creation of new business on a global scale

02

Globally distributing and selling resourcesbiomass fuel, waste paper and used clothes▼ FY2020 export volume

NEWSCON Inc. was established in April 2020, succeeding the
Global Resource Circulation Business of ECONECOL Inc. To playa role in the circular economy, the company supports the
expansion of the Global Trading Business of the ENVIPRO Group.
The NEWSCON name incorporates the idea of "the creation of
new business on a global scale". The company will create uniquevalue to become "a company that brings the world closer to us".

Main business activities of NEWSCON Inc.
Domestic and overseasof ferrous raw
01 salesmaterials
Domestic sales ofbiomass fuels

Processing and supply

nonferrous raw
02 ofmaterials

04

International distribution ofwaste paper, used clothes,waste plastics, etc.

Value & Vision
Under a philosophy of "The creation of new business ona global scale," the company will play a role in expanding
the overseas business of the group, and will contributeto achieving a global circular economy society.

511,000
9,000
10,000Ferrous
scrap
Waste
paper

Biomass

tons

Used
clothes

tons

27,0002,000

Nonferrous
metalstons

tons

sediment sludge; mixed metals; etc.)

03

tons

and overseas sales of
01 Domestic
ferrous raw materials
NEWSCON Inc. collects ferrous scrap at ports around Japan, controls quality
according to customer requirements, and sells the scrap to steel mills (blast
furnaces and electric furnaces) in Japan and overseas. With the expansion ofsteel demand in Vietnam and elsewhere in Southeast and Southwest Asia,
the company is increasing the amount collected by establishing andexpanding stockyards in Japan. As logistics methods for transport diversify,
the company will makeactive use of large andsmall bulk ships andcontainer transport, willbuild a sales structure
covering Japan,
neighboring Asia, anddistant regions, and will
engage in the sale ofsteel resources around
Steelmaking raw materials (ferrous scrap, etc.)
the world.

Processing and supply of nonferrous
raw materials
Nonferrous metals contained in scrap materials are shredded and sorted
at the recycling plants of ENVIPRO Group companies, and are processedand supplied as nonferrous scrap of quality that meets the needs of majordomestic and overseas nonferrous smelters and secondary alloy
manufacturers. NEWSCON also makes use of its stockyard functions andoverseas network to collect nonferrous scrap such as aluminum andstainless steel. To supply copper,
aluminum, and precious metals,
in recent years the company has
engaged in import and trilateral
trading of electronic scrap (circuitboards, etc.) from Europe andother locations, and isundertaking expansion into theNonferrous raw materials (aluminum;
European market.
stainless steel; gold, silver & copper

including ferrous scrap, nonferrous metals,

03

Other Business

Domestic sales of fuels
NEWSCON sells palm kernel shell (PKS) to Japan as a fuel for biomass
power plants. This fuel is attracting attention as a renewable fuel. Demandis expected to grow, particularly in Japan. The company has PKS collection
bases in Malaysia. By thoroughly removing foreign matter and controlling
moisture, it maintains the quality demanded by consumers and offers astable supply. The company plans to
expand its handling of PKS along withwood pellets, new fuels, and otherproduct types.
PKS

04

Wood pellets

International distribution of waste paper,
used clothes, waste plastics, etc.
NEWSCON exports waste paper as a raw material for paper mills and usedclothes as a reuse product. It also sells miscellaneous goods including
apparel from Japan and hygiene products aimed at growing cross-border
e-commerce markets. The company also sells waste plastics, which havecome under attention in recent years, to partners in Japan and Asia inorder to establish
optimal recyclingflows. These aremainly plastics fromhome appliances.
Waste paper
Used clothes
Waste plastics

17

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

GlobalTrading Business

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Promoting collaboration with regions, companies,
and people around the world

Workplace introduction
Vietnam Representative Office

Europe Representative Office

Most ferrous scrap, an important recycled resource, is consumed as a raw
material by Vietnamese steel makers to be reborn as new steel finished goods.
Not only ferrous scrap but also nonferrous metals, waste paper, plastics, andother recycled resources from Japan find their way overseas. In 2015, NEWSCON
set up a representative office in Ho Chi Minh in Vietnam, and is steadily increasing
the amount of materials it handles. It plans to export to Vietnam from Japan as well
as from Europe, North America, and many other regions. It views Vietnam not as
the end point of Japan's resource recycling but as the starting point of therecycling business, and plans to establish a local corporation and collaborate withlocal companies to further develop a business with roots in Vietnam.

This office mainly collects mixed metals, including
nonferrous metals and precious metals. It currently ships to
Asian countries and Japan, and is developing activities toperform collection and sales in Europe in the future. It
sends out information on a daily basis, including on
incidents in Europe related to the businesses of
NEWSCON Inc. and the ENVIPRO Group, leading
European environmental policies, and the latest recycling
business models.

Interview with overseas
human resources

Nguyen Pham Dieu Linh

Le Van Hai

Liku Kouketsu

Ho Chi Minh Representative Office

Ho Chi Minh Representative Office

Tokyo head office

Joined: 2017

Joined: 2020

Joined: 2019

I've been working at the Vietnam HCMC Representative Officesince 2017, focusing on daily administrative work and engaging
in communication with Vietnamese customers and Japanese
staff. I had no experience in the field of scrap until I joined thecompany; my only strength was practical experience indocument creation and office work. In the workplace, managers
and the office head in particular have created a great working
environment for honing skills. I'm learning a lot about the scrap
business and the field of trading. I consider it an honor tocontribute to the prosperity of the company. I'm focusing on
improving my Japanese skills to improve support andcommunication with Japanese staff. I'm now working from home
due to the COVID-19 pandemic, but am making efforts toimprove means of communication and work efficiently.

I began my career as a domestic-market salesman at a Korean
company. That's where I first learned about the steel market andimproved my foreign language skills. Demand for steel is very
high in Vietnam, so I decided to take this job as an opportunity tocontinue down a path in the steel business. Although I had noexperience in international trade, I was put in charge ofimport/export work and gained a lot of knowledge in that field.
This gave me a multifaceted understanding of the steel industry
and its giant companies. I joined the company in 2020. Working
with products such as iron, plastics, paper waste, and aluminum,
I've been able to gain more knowledge of international businessalong with opportunities to work with enthusiastic and energetic
colleagues. I am confident that by working hard and always
learning, I can make further contributions to the development of
the company.

My main work is arranging bulk carriers for exporting ferrous
scrap overseas. I work with shipping companies to find shipsthat meet shipping date, quantity, and other conditions for our
ferrous scrap, negotiate charges, and deal with troubles thatcrop up after the ship sails. This is my first time to be involved in
the ferrous scrap trading business, but I feel that a lot of senior
employees are giving me kind support and are watching over mygrowth. I'm also in charge of exporting miscellaneous goods toChina by air, inspecting clothes, sneakers, toys, and otherexported items collected from all over Japan, accompanying
loading work, and managing deposits and withdrawals. In the
future, I hope to utilize my Chinese language skills to develop
marketing in China and create new businesses.

18

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

GlobalTrading Business

A History ofValue Creation

Sustainability
Strategy

Resource Circulation
Business

Action Plan

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Cross-border circulation of resources through the reuse of used cars
distribution of used cars
01 Internationaland maintenance parts

Distributing used cars and maintenance parts

3WM Co., Ltd. engages globally in the reuse of used cars and other usedproducts, contributing to the effective use of resources through its business.
The company exports used cars, trucks, heavy machinery, and othervehicles, as well as select high-quality engine and other parts, from Japan toCentral and South America, the Middle East, and Southeast Asia. With
distribution and sales bases in Chile and the UAE, the company has earned
the trust of local customers through sales and service rooted in local
communities. In addition to acting as an agent for logistics work such as
shipping arrangements and export customs declarations, the company isdeveloping a truck purchase site and a camper rental business aimed at
general consumers in Japan.

internationally to promote reuse on a global scale

global-scale reuse through02 Promoting
trilateral trade
As used cars and used automobile parts decline domestically in recent years,
3WM is strengthening its handling of products from overseas and isdeveloping a global-scale reuse business through trilateral trade. By
promoting the efficient use of limited physical and energy resources, it willcontribute to the achievement of a sustainable society while aiding economic
development and improvement of livelihoods in importing countries.

Main business activities of 3WM Co., Ltd.
Export of and trilateral trade incars, trucks, heavy
01 usedmachinery, and maintenance parts● International distribution of used cars and maintenance parts

car maintenance business
02 Used(overseas)(Luxury cars)

03 Logistics agency business

rental business
04 Camper(domestic)

Japan
Middle East (UAE)

Kenya

Bangladesh
Thailand Vietnam Philippines
Cambodia
Malaysia
Singapore

Trinidad and Tobago
Export from Chile toneighboring countries

Indonesia

Value & Vision

Singapore → Chile

Southeast Asia

Promoting the efficient use of material and energy
resources and contributing to a sustainable society and to
the improvement of local economies worldwide.

New Zealand

LegendUsed cars
Trucks

Maintenance parts
Heavy machinery

UAE → Chile
Japan → Chile

19

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

Lithium-ion Battery
Recycling Business

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Establishment of a resource recycling flow for minor metals

Other Business

ESG Initiatives

Corporate Data

▼ The lithium-ion battery recycling process

Batteries to be processed

Collecting and recycling nickel, cobalt,
and other minor metals from lithium-ion batteries
and other sources

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

Vehicle use(EVs, HEVs,
PHVs, 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

Heating treatment
Electrolyte is volatilized throughheat treatment

Main business activities of VOLTA Inc.

01

Collecting and recyclingof minor metals fromrechargeable batteries

01 Strategic securing of minor metals

As demand for rechargeable batteries in electric vehicles grows, the demand
for and the value of cobalt, nickel, and other mineral resources are expected
to increase. VOLTA Inc. seeks to establish a domestic resource recycling
flow and to strategically secure mineral resources.

02
Recycling of used casings(other than batteries)

Shredding/sorting
Continuous shredding by multiple
shredders and sorting with sieves

Shredding/sorting
Sorting with sieves after shredding* By evaporating electrolytic solution throughheating treatment, shredding and sortingare handled in a continuous line

02 Decarbonization process at RE100 plant

Anode sheet/
Cathode sheet
Active materials applied to copper
foil or aluminum foil are efficiently
stripped off by a special shredder

As we aim to achieve carbon neutrality by 2050, decarbonized processes
are also needed in battery recycling and reproduction of resources. In April
2021, VOLTA achieved the use of 100% renewable energy sources in allprocesses except for transport vehicles.

Value & Vision
Demand for minor metals will grow aselectric vehicles (EVs) become widespread.
We are working toward recycling these at our
RE100 plant to promote recycling ofresources in Japan.
We will become an indispensable presence inthe battery industry and future society.

Electrode plate
recycling process

03

Acquisition of certifications and permits
to broaden business domains
In July 2020, VOLTA obtained a permit to "engage in the industrial waste
disposal business", enabling the collection of more types of batteries. In
February 2021, the company acquired certification under the "R2
Standard", a U.S. regulation that aims for responsible recycling processes.
The company seeks to expand business opportunities by gaining an
advantage in transactions with foreign-affiliated companies.

LIB material recycling
supply chain

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

LIB material recycling
supply chain

Active materials:
Hydrometallurgy manufacturers
Carbon: Steel manufacturers
Copper: Copper smelters andmanufacturers
Aluminum: Reducing agent
applications* Black mass/active materials: Cobalt/nickel concentrate sludge

20Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Support for social participation

Other Business

transition support
02 Pre-employment
program(Bright)

ASTOCO provides support for job hunting
activities such as resume preparation forpeople with disabilities seeking work. The company also engages insupport activities for employment retention in the workplace so people canremain working for a long time.

Supporting people with disabilities in interacting

B continuous employment support
03 Typeprogram(Ecommit)

with society, acquiring knowledge and skills,

ASTOCO works in collaboration with groupcompanies, local companies, agriculture, etc.,
and pays wages commensurate with work, to give people who facedifficulties at general companies opportunities to work with confidence andpurpose as active members of society.

and securing employment

04 Satellite Work Business
Main business activities of ASTOCO Inc.

01

Pre-employmenttransition support
program03

Satellite WorkBusiness

02

Type B continuous
employment support
program04

Support Manager for
people with
developmental
disabilities

Value & Vision
Support employment for people withdisabilities and participation in social
activities, and contribute to solving social
issues amid a declining labor force.

opportunities for people with
01 Creating
disabilities to play active roles
The shrinking working population caused by a declining birthrate and aging
population is becoming a social issue. In March 2021, the statutory
employment rate of people with disabilities was raised to 2.3%, further
increasing the need for the employment of people with disabilities.
ASTOCO Inc. promotes beneficial matching between people withdisabilities and companies, including cooperation with Japan Agricultural
Cooperatives (JA) and farmers to address the shortage of human resources
on farms. The company▼ Total number of users Employedis receiving anpeople 26
increasing number of
Average wage
requests every year,■ Bright ■ Ecommit
such as for agricultural
21,732 yenwork support during
15,000busy seasons, and is12,512
expanding its ties with
11,041
9,955
the community. The
10,0008,219
company will continue
6,665
helping people withdisabilities find
4,273
5,000
opportunities to play
active roles with greater
peace of mind.
0
Jun/2019

Jun/2020

Jun/2021

ASTOCO supports the creation of comfortable working environments andjobs for people with disabilities in order to resolve issues that companies
face, such as difficulties in appropriately accommodating the specifics ofdisabilities.

Manager for people with
05 Support
developmental disabilities
ASTOCO has been commissioned by Nagano Prefecture to provide
consultation for people with disabilities living in the region and to coordinate
cooperation with related organizations.
▼ ASTOCO Inc. offices
BrightMatsumoto

Ecommit Azumino
Bright Matsumoto
Station-front Center
Bright Saitama
Bright Musashikosugi

Ecommit Fujinomiya■ Bright■ Ecommit

21

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Providing environmental consulting services through consulting & solutions

Other Business

An environmental specialist consulting firm engaged in carbon neutrality-related consulting (carbon neutral strategy,
GHG reduction, etc.) and circular economy-related consulting (construction of resource recycling schemes, etc.)

Vision/strategy
formulation

Information
disclosure/evaluation
improvement

information disclosure
support● CDP/DJSI answer support,

rating improvement support● ESG evaluation system

rating improvement support

Carbonneutrality

emissionspolicies and emission credits in Japanand overseas● Global company benchmark researchfor environmental management andclimate change response● Procurement of green

electricity

Decarbonization● Introduction of renewables● Research on climate change-related

Research,
calculationon

contributions to emissions reduction● Internal carbon pricing

Soluvision/strategy
formulation● Setting of circular
economy businessobjectivesulenergy● GHG emissions reduction
at overseas businessestablishments

related research● Circular economy
global corporation
benchmark research● Procurement of recycledmaterials
Feasibility studies● Recycled raw material
analysis research● Circular economy businessgtinPlanning● Support for construction of

Vision/strategy
formulation

discarded product/waste
collection schemesModelcommercialization● Circular economy business

partner development support● Circular economy businesscost analysis

Circulareconomy● Circular economy-● Procurement of creditti● Calculation of products'● Circular economy

Cons

recommendations● Environment/sustainability

Research

Collaboration with the group's
Resource Circulation Business(Reuse/Recycling/Remanufacturing)

Resource
circulation● Waste processing (shredding,sorting, cleaning)s● Response to TCFD

g
tin
ul

on

● Calculation of Scope 1, 2, and 3

Cons● Climate change response/luti● Carbon neutral strategy

sustainability long-term
vision/strategy formulation● Formulation of greenhouse gas
emission reduction targets● SBT application support● Greenhouse gas emission
reduction planning● Climate scenario analysis● RE100 planning

22

So● Waste collection● Manufacturing of PET fromwaste plastics● Recycled material

processing/manufacturing● Recycled materials

procurement/supply● Development of applications forrecycled material productsof decarbonization
01 Promotion
and response to climate change
As movements toward decarbonization pick up speed inJapan, it is increasingly important for companies to takethe impacts of climate change into consideration in their
management, and to adapt to related risks andopportunities as a part of management strategy. BrightInnovation Co., Ltd. supports companies in tackling
response to climate change. The company is developing
consulting services that address carbon neutral strategy,
SBT and other goal setting, drafting of CO2 reductionplans, improvement of CDP and other third party
evaluations, and support for response to TCFD
recommendations and other information disclosure. The
company also provides comprehensive services that
include the introduction of renewable energy and otherplanning of company strategies for emissions reduction.

Main business activities of Bright Innovation Co., Ltd.

01 Carbon neutral consulting and solutions
02 Circular economy consulting & solutions
Value & Vision
Supporting companies' sustainable management as aprofessional in the environmental field.
Promoting clients' environmental management through practicalconsulting and solutions linked to companies' business strategies.

a circular
02 Promoting
economyAmid the emergence of issues such as the depletion ofmaterial resources, the concept of the circular economy
and its importance are becoming widely known. BrightInnovation offers consulting services related to theconstruction of circular economy models for products andthe construction of closed-loop circular models throughthe conversion of plastic containers into recycled materials
and the use of recycled materials in containers. By
collaborating with group companies engaged in the
Resource Circulation Business and by proposing solutions
that include recycling and remanufacturing, the company
provides integrated services that contribute to establishingcircular models for companies.

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Environment

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Promotion of decarbonization andexpansion of renewable energy
ACTION

01

Efforts toward carbon neutrality by 2050

Scope 1+2 CO 2 emissions results andtargets (tons)

By reducing greenhouse gases emitted by all of its businesses, the ENVIPRO Group seeks
to become carbon neutral by 2050. Fiscal 2020 CO2 emissions were 9,893 tons, a 24%
reduction compared with fiscal 2018. CO 2 emissions include those derived from electric
power (Scope 2), accounting for about 70% of emissions at the time of joining the RE100
initiative. By working to switch to electric power from renewable sources, we are achieving
continual reductions in emissions. By making all of our business activities carbon neutral,
including the recycling of scrap and wastes, we will contribute to resolving social issues
through decarbonization and to the achievement of a circular economy.

16,00014,075 13,017

12,000

4,000
0

0
2018

2017

2019

2020

2050

Scope 2 tCO 2

02

Achievements toward RE100 targets
Our group is a member of the RE100 global initiative to commit
to 100% renewable energy for electricity used in businessactivities. In December 2020, we moved the year for achieving
RE100 ahead 20 years to 2030. In fiscal 2020, renewableenergy accounted for 35.0% of our electricity consumption. In
April 2021, group member ECONECOL Inc. completed its
switch to renewable energy for electricity used at its plants andoffices, including its head office. With this achievement, about
95% of the electricity consumed by the group as a whole will bederived from renewable energy. We expect to cut CO 2 emissions
from business activities in fiscal 2021 by about 60% (comparedwith fiscal 2018).

ACTION

9,893

8,000

Scope 1 tCO 2

ACTION

11,902

Actual and target power
consumption and renewableenergy ratio
Power consumption

Renewable energy ratio

25.0

100.0 100.0

20.0

80.0

(GWh)

03

(%)

15.0
10.0
5.0
0.0

0.0 2.9
2017

2018

17.8
2019

Power consumption GWh

95%

60.0

35.0

40.0
20.0

2020

2030

0.0

Renewable energy
ratio as of June 2021

RE100 electrical power ratio

New initiatives for a circular economy
Our group took part in a demonstration trial of a waste plastic resource recycling model in Tokyo's Marunouchi area, which began in June 2021.
Post-consumer recycled (PCR) materials such as waste plastic products present difficulty in collection due to their wide variety of types andsmall quantities. In this project, we collaborated with companies in the PCR supply chain to carry out investigations and trials aimed at building
a sequential supply chain system spanning collection and transport of PCR to remanufacturing into consumer products, through streamlining oflogistics and the establishment of traceability. Our group is recycling the collected waste plastics into raw materials.

23

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Environment

Material balance
INPUT
Scrap, waste, raw materials

717,800 tons

Metal scrap

43,200 tons

Fuel

63.7 TJ

Electricity

18.1 GWh

Water

23,000 m 3Nonferrous metals

9,700 tons

Waste plastics

1,100 tons

Plastic raw materials

100 tons

Scrapped cars

9,700 tons

Fuel raw materials

29,100 tons

Wood chip raw materials

2,800 tons

Raw materials for paper

8,100 tons

Scope 1

4,307 tons

0 tonsScope 2

5,587 tons

Amountprocessed

7,200 tons

Wood waste

3,600 tons

Waste paper

8,000 tons

Used clothes

0 tons1,300 tons

Subtotal

229,800 tons

Ferrous scrap

446,800 tons

Raw materials from used clothes
Recycled raw materials

Electronic waste

Black mass

Amountprocessed anddistributed*2

600 tons
96,200 tons

Category 1

Purchased products/services

15,402 tons

Ferrous metals (scrap)

101,100 tons

Category 2

Capital goods

1,564 tons

Category 3

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

1,912 tons

Category 4

Transport/delivery (upstream)

69,577 tons

Category 5

Waste generated from business

3,779 tons

Category 6

Business travel

62 tons

Category 7

Employee commuting

217 tons

Nonferrous metals

5,000 tons

Subtotal

106,100 tons

Ferrous metals (scrap)

420,000 tons

Waste plastics

600 tons

Plastic raw materials

600 tons

Waste paper

8,800 tons

Fuel raw materials

10,400 tons

Raw materials for paper

8,700 tons

Used clothes

2,600 tons

Raw materials from used clothes

2,600 tons

Wood pellets/PKS

10,400 tons

Subtotal

449,500 tons

476,500 tons

Total

651,800 tons

Raw materials for rubber chips

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

Reuse

2,735
11,500 tons
717,800 tons

Finished goods
Recycling
Waste disposal

92,500 tons

Subtotal

7,100 tons

Used cars/trucks

9,900 tons

CO2 emissions (Scope 3)

Nonferrous metals
Distribution
volume *3CO2 emissions (Scope 1+2)

2,600 tons

Other

7,300 tons

Subtotal

Raw materials

Ferrous metals (scrap)

42,700 tons

Nonferrous metals

Reuse

156,100 tons

Energy /water

Mixed waste

Waste batteries

Distribution
volume*1

OUTPUT
Recycled raw materials / finished goods /processing outsourcing 691,800 tons*1

Disposal outsourcing

Scrap/waste

Amountprocessed

24

Used cars/trucks

2,698

Maintenance parts

280 containers

Rubber chip-based products

10,700 tons

Material recycling

1,200 tons

Thermal recycling

15,300 tons

Simple incineration

3,600 tons

Landfilling

9,300 tons

Total

29,300 tons

Total output*1

691,800 tons

*1 Total of recycled raw materials, finished goods, and disposal outsourcing (excluding reuse)*2 Amount of processed resources distributed overseas, etc.
*3 Amount of resources distributed through trading company functions* We will continue to assess emissions in other categories and elaborate on data from thenext fiscal year.

Resource recovery rate*

94.5%* The recycling rate is calculated from Output: (amount processed + amount processedand distributed + recycling) ÷ (amount processed + amount processed and distributed +recycling + waste disposal) x 100

Disposal outsourcing (waste)
Disposal outsourcing (recycling)

651,800 tons

Finished goods

Recycled raw materials
AmountAmountandprocessed processed
distributed

Total output

Distribution volume691,800 tons

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Environment

Information Disclosure in line with TCFD Recommendations
Basic concept

Identifying and addressing risks and opportunities

Under the Paris Agreement, an agreement was reached to limit average global temperature increase to less than 2°C compared topre-industrial levels. Efforts to decarbonize are underway in many countries. Against this background, the Task Force on Climate-related
Financial Disclosure (TCFD), established by the Financial Stability Board (FSB), delivered its final report in June 2017. Following further
developments including the December 2018 publication of "Guidance on Climate-related Financial Disclosures (TCFD Guidance)" byJapan's Ministry of Economy, Trade and Industry, momentum to address the TCFD recommendations is growing.
In May 2019, the ENVIPRO Group announced its endorsement of the TCFD recommendations. In December 2020, the group made thedecision to aim for effectively zero greenhouse gas emissions from our businesses, including the treatment and recycling of scrap andwastes that we handle, by 2050. Resource issues and climate change issues are not isolated issues but rather bear close relation to eachother, and are global-scale societal issues. Endless resource mining and greenhouse gas emissions are detrimental to sustainability.
These issues must be resolved to preserve our shared global resources and natural environment into the future. Our group, which
engages in the Resource Circulation Business at the end of the supply chain, is characterized by the ability to tackle both of these keysocial issues through our business. We believe that these issues truly constitute social responsibilities that our group should address.

Our group used two scenarios, one assuming a temperature rise held back to 2°C at the end of this century and one witha temperature rise of 4°C, to analyze the risks and opportunities brought about by climate change and their impact on ourgroup. We then studied countermeasures.
▼ Scenario analysis
Assumptions

Current
scenario(4°C)
Transitional
scenario(2°C)

Category

To promote policies and measures related to climate change response and other sustainability strategy matters, the group's sustainability
promotion system has a Sustainability Committee that consists of the President and Representative Director, full-time officers, executive
officers, and heads of some related departments. The Committee seeks to promote the Medium-Term Management Plan, "Sustainability
Strategy" that forms our strategy for achieving sustainable development for both the group and society. As an organization that assists
decision-making by the Representative Director, it flexibly and actively discusses and examines the status of strategy promotion andfuture directions, including new business and M&A, from a long-term perspective. Matters discussed are further resolved or discussed
by the Management Committee, a decision-making body for business execution, and are then reported to the Board of Directors. Under
the supervision system of the Board of Directors, we work to maintain governance and promote sustainability strategies.

01. Board of Directors
Supervision

Report02. Management Committee
Supervision

ReportSelection·
Supervision·
Dismissal

Conferencebody
Report01.
Board ofDirectors

Representative Director
Instruction

Report03. Sustainability Committee
Chairperson: President and Representative Director
Members: Full-time directors, executive officers,
department manager of the Environmental
Business Promotion Department,
department managers in charge ofstrategy with management duties
Secretariat: Corporate Planning Department

Instruction

Instruction

Report04. Individual departments/group companies

Report02.
Management
Committee

Rise in the usage rate ofrecycled plastics due toregulations concerning use ofrecycled plastic

Transition▼ Role of the conference body in thesustainability promotion system toaddress climate change

Supervise the progress of
initiatives related toenvironmental issues discussed
and approved by theManagement Committee.
Convene every month.

● Increased demand for ferrous scrap due to an

Risks/Opportunities● Increased ferrous scrap blend ratio in converters

Expansion of existing Recycling Business
Opportunities Installation of large shredders

ferrous scrap● Rise in ferrous scrap prices due to increased demand

Changes in raw materials due to thedevelopment of decarbonization
technologies for steelmaking processes

increase in electric furnaces● Increased demand for high-grade types of● Acceleration of the transition to a circular

economy throughout the plastic life cycle
assessment (LCA)● Expansion of waste plastic materials andchemical recycling● Increase in dismantling work for energy-related

facilities● Increase in demand for nonferrous metals andminor metals in line with electrification(depletion)● Rise in nonferrous metal and minor metal prices

due to increased demand● Development and increased use of alternative
materials to reduce automobile weight andcounter resource depletion

Decide on important mattersrelated to individual, specificinstances of business execution,and make decisions on timely
disclosure. Convene every month.

Discuss organization andoperation of the Committee and03.
other important matters
Sustainability concerning sustainability in order
Committee to promote the Medium-Term
Management Plan. Convene
every month.

Increase in capital investment
related to renewable energy due
to the promotion of its diffusion
Growing proliferation of EVs,
ESS, etc. associated withcarbon reduction anddecarbonization

Role

Changes in the businessenvironment

Changes in society
Increased cost of steelmaking
processes due to theintroduction of carbon taxes

Requirement for reporting ofCO 2 emissions with respect toemissions reduction targets● Assurance of CO 2 emissions traceability (DX)

Increase in heat stress due torise in average temperatures● Regulation of outdoor work during summer

Increase in natural disasters
due to intensification ofabnormal weather● Increase in damage to plants and other

Risks

Development and commercialization ofOpportu- chemical recycling plants
nitiesManufacture of low-carbon raw materials
and fuels (RPF)
Risks

Short to long term
Medium to long termLong term
Medium to long term
Short to medium term

Short to long termLong term
Medium to long term
Short to long term

Creation of new businesses

Medium to long term

Reduction in the use of nonferrous metals
and minor metals in line with technologicaldevelopments

Medium to long term

Opportu- Expansion of the scrap and waste logistics
nities businessMedium to long term

Risks

Risks

business sites● Increase in transportation and construction
delays● Increase in logistics accidents

Affected
PeriodLoss of business opportunities due to delaysin technological developments and business Medium to long term
entry

Opportu- Wide-area expansion of our dismantling
nities business
Risks Curtailment of waste plastic thermal
recycling
Expansion of the Lithium-ion Battery
Recycling Business
Opportu- Expansion of the Collection Business ofnities Gold, Silver & Copper Sediment Sludge(recycling of riddling ash, etc.)

Loss of business entry opportunities due todelays in business development

Opportunities Labor-saving, automation, remote control
Risks

Physics▼ Sustainability promotion system diagram

Details
A scenario in which the average temperature rises by about 4°C compared to pre-industrial levels as a result of failure to introduce
stricter government policies and strengthen regulations, such as regulations to curb GHG emissions, and of failure by businesses
to take effective action in response to climate change. Acute effects include more frequent extreme weather events and more
intense heavy rainfall, while chronic effects include rising sea levels.
The introduction of carbon taxes and policies to regulate emissions are being strengthened to address climate change and curb
GHG emissions. In a world that places demands on companies to respond to climate change, a scenario in which the averagetemperature rise compared to pre-industrial levels is kept below 2°C by improving low-carbon technologies, expanding renewableenergy, and promoting energy conservation.

▼ Risks and opportunities facing our group

Sustainability promotion system

25

Decreases in labor productivity due torestrictions on working hours, etc.

Medium term
Short to long term
Short to long term

Opportunities Strengthening of response to disaster waste

Short to long term

Shutdowns due to damage to plants anddecline in profits due to production declines

Short to long term

Decreases in profits due to lost sales andpurchasing opportunities

Short to long term

Risks

Increases in insurance and repair/restoration
Short to long term
cost.

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

SocialA History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Toward safe and secure workplace environments
ACTION

01

Cross-group “Environmental & Safety Promotion Committee”
ENVIPRO HOLDINGS Inc. makes the creation of safe and secure workplace environments its highest priority, and works to reduce industrial
accident risks and ensure the safety of workers. The Environmental & Safety Promotion Committee develops cross-group activities led by thepresidents of group companies. By sharing examples of companies' initiatives, verifying effects, sharing the progress of activities, and sending
stronger messages to all employees, it is working to encourage all individuals to make changes in their awareness and to foster a corporate
culture that creates safe workplace environments.

ACTION

02

Risk prediction activities with participation by all
We are developing risk prediction activities across the group to report on points that workers findhazardous in work environments and on solutions to these. Every day, workers submit reports,
which are posted on bulletin boards to be seen by all. While monitoring the effectiveness, we are
expanding the risk prediction activities to sales departments, including transport teams, to instill
the activities throughout the group. This is now showing effectiveness in reducing the number ofindustrial accidents and the scale of accidents.
Posting of risk prediction activity charts

ACTION

03

Solidifying the corporate brand of being a safe andclean company
Understanding and analyzing the situation of industrial accidents is vital in improving theeffectiveness of safety activities. In the past, group companies had individually carried out study
meetings by review committees when industrial accidents occurred. As a new initiative to further
speed up sharing within the group, we have begun to invite affiliated companies performing
similar work or experiencing similar accidents to take part in the review committees. As
accidents are frequent in the operation of vehicles, heavy machinery, forklifts, and so on, we areenacting measures that include equipping forklifts with drive recorders. Ultimately, however, it ispeople who operate equipment and systems. Steady activities that change the awareness of
individuals and nurture that awareness as corporate culture form a cornerstone of efforts. We willcontinue making efforts and improvements under the slogan of "solidifying the corporate brandof being a safe and clean company".

Drive recorder-equipped forklift

26

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

To build a platform filled with good quality energy where
employees can work energetically
In achieving the ENVIPRO Group's mission of "Contribute to create a sustainable society," we believe it is important that all employees have the realization that their work is of use to society, and that thisjoy becomes a driving force for the growth of the company. Under the concept of "to build a platform filled with good quality energy," our group is working to create work environments where all employees
can work energetically and make the most of their capabilities. The following is an introduction to the active involvement of a female employee who balances work with home life as a manager, along withthe activities of an in-house project to enhance group cohesiveness.

Creating work environments where women can play active roles
For the sustainable development of the ENVIPRO Group, we must create work environments where all employees can display their full potential and where people of different backgrounds can remain
working together. The group particularly emphasizes the creation of friendly work environments for female employees, and has appointed women to management positions this fiscal year.

Women lead teams in management positions!

Full power, at home and at work!

ENVIPRO HOLDINGS Inc.

ASTOCO Inc. (Ecommit Azumino)

Eriko Takeuchi Manager, General Affairs Section

Chiemi Nomura Facility Manager

Q. Tell us what makes you enthusiastic as a manager.

Q. What made you decide to join the company?

A. duties. Pooling my strength with three other women from the General Affairs Section, I

Since being appointed to my post in July 2021, I've been working hard to carry out my

A. programs in place for cases like this, but the working environment made taking leave

want to make this a team that people can count on. Currently, we're making active useof web-based systems to standardize work and create an environment where we canfollow up on each other.

difficult. Some time after I left, I interviewed with ASTOCO. Right from the interview,
they attentively asked about my mother's long-term care situation. I felt reassured withthis company.

Q. What do you see as friendly to women in the work environment?
We introduced a flextime system a year ago. This is very convenient in letting female

I left a job I had worked at for 15 years to care for my mother. The workplace had

Q. Did you have any concerns about balancing work with home life?
My team has eight people, of which six are women. We rest assured that the president

A. employees with families go to work after their children go to kindergarten. Another great

A. and superiors understand balancing work with family life, and that we can get help if

point of the company is a corporate culture that, with the understanding of superiors
and the help of colleagues, can flexibly adapt to sudden needs to be away from work.

something comes up. Employees express mutual aid and gratitude, and the words"thank you" can always be heard in the company. It's a place where I can feel fun andexcitement on the job every day.

Q. What do you place value on at work?
A.

The concept of thinking of the colleagues we deal with in work as customers within thecompany. We can't do our jobs alone. I keep this in mind especially when I hand off work
to the next process.

Q. What are your future aspirations?
As the company and jobs have gone through major changes, I myself was able to grow

A. by experiencing a number of jobs. Also, I see it as my responsibility to create
opportunities for young employees to grow. I want to bring in others, concentrate myenergy on positive things in the future, and grow together with the company!

Corporate Data

SocialTOPIC
Formation of the Company Song
Project TeamThe COVID-19 pandemic has restricted physicalcommunication within the group. In response, we
decided to participate in the NIKKEI National Company
Song Contest to boost solidarity within the company, andput together the Company Song Project Team. By
creating a music video of the company song that plays
every morning in offices and plants, we sought torevitalize communication throughout the group.

"Love All Over the World" is the title
We conducted a questionnaire survey of all employees
and held discussions on the ENVIPRO Group's
uniqueness and appeal, and what employees want toconvey. The concept behind the production is to deliver
energy to employees' family members, local residents,and everyone seeing the video, through the appearance
and the smiles of employees who are serious about theenvironment and who remain committed to reducing
wastefulness. The music video expresses an image of"love" being set on heart-shaped balloons and delivered
to the world, to connect and spread.

Q. At what times do you feel your job is rewarding?
Being entrusted with important work and expectations to deliver encourages me to do

A. my best. Recently, I was happy to see the company adopt business planning materials
that I created. I'm always able to put my experience with long-term family care andchildcare to use in work. My hard work as a mother proves to be a great power on thejob, too. I'll do my best to contribute to the company's growth, with a feeling of gratitude
that keeps me going day by day!

27

Video now playing on YouTube
Music video: https://youtu.be/A3eJwIF03zk
Making of: https://youtu.be/O5WirnE700k

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Resource Circulation
Business

Action Plan

Governance

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Corporate governance
Basic approach to corporate governance
The ENVIPRO Group recognizes that instilling our corporate philosophy throughout the organization is the most important aspect of governance, and thatthe strengthening of governance that brings discipline to organizations to sustain growth is a key issue in management. Responding to this issue, in
addition to soundness, transparency, and efficiency of management we will always maintain awareness of corporate ethics and legal compliance in our
corporate activities, and will work to strengthen and enhance our corporate governance.
▼ History of corporate governance2010●

Established current ENVIPRO HOLDINGS Inc.

2011

●

Increased number of external directors from two to three

2013

●

Listed on the Second Section of the Tokyo Stock Exchange

2015

●

Revised the Internal Control Basic Policy

2016

●

Established the Appointment and Remuneration Committee

2017

●

Established the Audit and Supervisory Committee

2018

●

Listed on the First Section of the Tokyo Stock Exchange

2019

●

Performed early delivery of convocation notices (over three weeks in advance)

2021

●

Changed the Sustainability Committee to a key meeting body for promotion of the Medium-Term Management Plan●

Introduced executive officer system●●

Established Internal Control Committee

Increased the number of external directors from three to six●

Established the Sustainability Committee▼ Corporate governance structure diagram
General Meeting of Shareholders
Appointment/dismissal

Appointment/dismissal
Audit/supervision

Audit and Supervisory Committee

Board of Directors

Supervision

ReportRepresentative Director
ReportInstruction

ReportDepartments / group companies

ReportSustainability Committee

Instruction

Internal Audit
OfficeInternal audit

Instruction

Instruction

Consultation

Environmental & Safety
Promotion Committee● IT Promotion Committee● Human Resources andLabor Reform Committee● Operations Reform
Committee

ReportConsultation

Management Committee

Internal Control
Committee●

ReportReportAppointment andRemuneration Committee

Supervision

ReportProposals

Selection/supervision/
dismissal

Advising

Collaboration

Audit
corporation

Collaboration

Accounting audit

28

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Governance
Board of Directors

Audit and Supervisory Committee

The company's Board of Directors has 10 directors, of which six are external directors (including three members of the Audit andSupervisory Committee). It convenes once a month in principle. The Board of Directors makes decisions on matters important to the
execution of the company's business, and oversees the execution of directors' duties. In fiscal 2020, the Board of Directors met 14
times, with a high attendance rate by all directors. At meetings of the Board of Directors, the President acts as chair to respectfully
draw out the opinions of directors, not from the viewpoint of short-term benefits, but rather to discuss even seemingly irrelevant policies
or measures and other matters from the perspective of medium- to long-term business growth.

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

▼ Senior executive skill matrix
Name

President,
Representative Director

Tomikazu
Sano

Senior Managing
Director

Fumikatsu
SanoManaging Director

Kozo
Haruyama

Director

Naoki
Takekawa

External Director

MiharuMurakami

External Director

Kyuchan
Hwang

External Director

Keiji
Miyaki

External Director(Audit and Supervisory
Committee)

Shoji Ide

External Director(Audit and Supervisory
Committee)

SuguruWada

External Director(Audit and Supervisory
Committee)

HiroshiKamiyaManaging Executive
Officer

Akiko Ishii

Executive Officer

Norihiro
Nakasaku

Executive Officer

Kenta Imai

Executive Officer

YasushiSugiyama* CN: Carbon neutrality
CE: Circular economy

Corporate
cultureManagement
strategy

Production
technology

Overseas

CN・

Position in thecompany

CE

Finance/
Accounting/Taxation

Legalcompliance

Human
resources

IT

IR

Expertknowledge

Appointment and Remuneration Committee
The Appointment and Remuneration Committee is composed of five members: the representative director and four external
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
Economics

The Management Committee consists of the full-time directors and the Chair of the Audit and Supervisory Committee. It may
also include some executive officers, department managers, and members of Boards of Directors of group companies, as
required for matters to be deliberated. The Management Committee generally meets once a month. to make decisions on
specific matters important to the execution of the company's business and on the timely disclosure of information.

Sustainability Committee
Procurement

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 for achieving sustainable development for both the group and society. As an organization
assisting decision-making by the representative director, it flexibly and actively discusses and examines the status of strategy
promotion and future directions, including new business and M&A, from a long-term perspective.

Internal Control Committee
Our group has established an Internal Control Committee chaired by the company president. This Committee consists of four
subcommittees: the Environment 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 the group, including awareness-building activities. The
Internal Control Committee generally convenes every quarter to allow 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 have significant impacts on management.

29

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Creating a human resources strategy and a structure aimed at sustainable growth
Human resources strategy
linked to strategy
On July 1, the ENVIPRO Group established a new personnel department
founded on a policy of actively advancing "human resources strategy
linked to sustainability strategy". This sustainability strategy seeks toachieve our mission of "contribute to create a sustainable society," andis based on the idea that the growth of our group connects tocontribution to society. Accordingly, holding the image that the growthof our group and the well-being of our employees are closely related, weset "build a platform filled with good quality energy where employees
can work energetically" as the concept of our human resources
strategy.

Governance2021 new graduate recruitment
Our group considers the securing of diverse human resources for the
medium- to long-term enhancement of corporate value to be important.
We make efforts to hire new graduates who will lead executive
management in the future. In April 2021, eight new hires joined thegroup, including four who became ENVIPRO Inc.'s first directly-hired
new graduates. Following a three-month training period, they wereassigned to positions in July. Welcoming new employees, with existing
employees taking positions of guidance, cultivates positive energy in thework environment and revitalizes the entire group.
We will continue working to hire new graduates from the next fiscal year
onward.

Emergent capabilities, autonomy,
and discipline
The concept of happiness is changing. It is undergoing a shift from thehappiness of devoting one's self to the company for life, to demands forsustainable happiness through experiences including personal growth,a sense of fulfillment, and a sense of accomplishment. Happiness
differs for every individual. Against that background, companies must
prepare diverse working styles, conditions, and environments and mustbuild a base that allows free choice through self-discipline. The
organizational image that our group should strive for is that of "adisciplined group of autonomous individuals equipped with emergent
capabilities". "Emergent" refers to human resources who can think,
move, discuss, and collaborate on their own. "Autonomous individuals"
are persons who act according to normative standards they themselves
set. By collaborating with individuals from diverse backgrounds who are
equipped with these two capabilities, we seek to become a "disciplined
group" grounded in our corporate philosophy.

Corporate Data

Group photo of fiscal 2020 new employees

TOPIC

A new structure for the promotion of sustainability strategy

Three new directors have been appointed at ECONECOL Inc. this fiscal year,with the aim of achieving further growth for the group and the promotion ofsustainability strategy. For about 70 years since its founding, ECONECOL
has shouldered metal resource processing, recycling, and other corebusinesses of the group. It plays a key role in promptly detecting changes in

Director
Engineering Department
Manager

Masaki Hayakawa

social needs and actively undertaking technological evolution and new
business initiatives to lead the group. The three directors, who have on-siteexperience in business development, plant design, sales, and other areas,
will work across the group to strengthen alliances while actively engaging inbusiness activities for the sustainable growth of the company and society.

Director
Production Department
Manager

Noritaka Akiyama

Director of Sales andBusiness Development
Department Manager

Hirohito Endo

Personnel strategy
As a sustainability strategy and a personnel strategy to achieve ourimage for the organization, we will promote the following five priority
measures.
● Enhancement of the quality of relationships through dialog● Respect for diversity● Creation of comfortable workplaces● Merit-based personnel system● Fostering of corporate culture"For society, for companies, and for one's
own work, continuation is vital. We will press
on, valuing further technological innovationand transmission to the next generation!""Our business is growing in importanceas the world changes. We will tackle
new businesses with cheerfulness, fun,and energy!""What's important is creating fans. Being acompany, and people, who earn expectations andtrust. We will stay on the lookout and continue tomeet the needs of customers and society!"30

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

GovernanceOur challenge: "Contribute to create a sustainable society"Approach to the Medium-Term
Management Plan

MissionMedium-Term
Management Plan
Fiscal year
business plan

Our group will optimize its business portfolio by deepening orwithdrawing from existing businesses and by exploring new
businesses.

● Expansion of municipalities collecting riddling ash● Strengthening wide-area cleaning and dismantling

Resource
Circulation
Business

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

business with a nationwide perspective● Construction of new plants● Installation of large shredders● Respond with the Act on Promotion of
Resource Circulation for Plastics● Promotion of M&A

colle

C h emGlobal Trading
Business

Strategy for achieving our long-term vision(July 2021 - June 2026)

Specific initiatives to achieve the Medium-Term
Management Plan

Fostering corporate culture andenhancing value through uniquenessOur group believes that instilling our corporate philosophy throughout theorganization and aligning it with our everyday business activities is the mostimportant aspect of governance, and is an indispensable undertaking for thesustainable enhancement of corporate value. In order to do so, we equip
employees with copies of our Management Plan that clearly sets out our
corporate philosophy, values, and norm of conduct. By utilizing the ourManagement Plan in our business activities, instilling our corporate
philosophy throughout the organization, and fostering our corporate culture,
we will continue to sincerely hone the individual functions of competitive
organizations that enhance economic, environmental, and social value.

Lithium-ion
Battery
Recycling
Business
Other Business● Welfare Service

Business for
People with
Disabilities● Environmental
Management
Consulting
Business● Construction of new black mass plant● Building alliances● Establishment of hydrometallurgy plantsyc
al recste plastics

ttery recycling

Existing business environmental management consulting,welfare services for people with disabilities

2020

2030

Profit distribution
The group's approach to profit distribution is to follow a general standard of
30% for investment in growth fields, 10% for research and development,
20% to 30% for dividends as a return to shareholders, and 30% to 40% forinternal reserves.

● Promotion of employment of people withdisabilities through enhancement of
employment support and growth of social
farming● Group synergies through expansion of
consulting on TCFD and other circular
economy-related and climatechange-related issuessRecycling resources, global trading,and of domestic and international stockyards● Promotion of scrap initiatives for ferrous

metals, nonferrous metals, specialty,
precious, and all other metals● Development of new products

bus

A ir

f wa
ling oLithium-ion ba● Expansion of import/export/trilateral trade

The ENVIPRO Group's significance in the world,
and its purpose and aspirations on a defined
timeline (the 30 years until 2050)

ic

cti

ne s

i
fter
a sh ation sludge
cineraedimentin
aste r s
o f w oppe
cling r & c
Recy old, silve
cling
recy
fg
o
n
o
cr a f t
N ew

Synergies among group companies

Corporatephilosophy

In order to advance our business strategy, our group (1) will possess andconstantly reform overwhelming technological advantages, (2) will
strengthen and constantly hone organizational sales capabilities based onhigh technological capabilities, and (3) will possess and constantly enhance
dynamic international distribution capabilities. Drawing on those premises,
we will "deepen our existing businesses", "explore new businesses", and"optimize our business portfolio".

Long-term initiatives to create
corporate value

Corporate value

In August 2021, ENVIPRO HOLDINGS Inc. reviewed the 5-year Medium-Term
Management Plan (Sustainability Strategy) formulated in 2018 to achievesustainable development of both the group and society. The Plan's
management targets for the period ending July 2026 include net sales of 70
billion yen, ordinary profit of 4 billion yen, and ROE of 15.0%. The corporate
value to which our group aspires is to enhance economic, environmental, andsocial value and to strengthen governance for maintaining these, to become
a company that is strongly needed by the world to create a sustainable
society. Toward that end, we want to build a "platform" filled with good quality
energy where employees can work energetically. We will advance theconstruction of these foundations and will promote diverse businesses asopportunities for the resolution of issues, aiming to achieve a "decarbonizedsociety", "circular economy society, distributed society".

Specific actions to achieve the strategy

Item
Growth investments
Research and development

Ratio
30%
10%

Return to shareholders

20%-30%Internal reserves

30%-40%31

Table of Contents /Editorial Policy

Message from the
President

Corporate Vision

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Company Profile
ENVIPRO HOLDINGS Inc.
Tomikazu Sano President, Representative Director
May 21, 2010
1,524,830,656 yen
Management and operation of affiliated subsidiarycompanies and associated work
Group companies Twelve consolidated subsidiaries (including secondgeneration subsidiaries), two equity method affiliates
Company name
Representative
Established
CapitalBusiness

Address

Head Office87-1 Tanakacho, Fujinomiya-shi, Shizuoka
418-0075 JAPANTEL: +81-544-21-3160 FAX: +81-544-21-3163
Tokyo Office
SHINKAWA EAST 2F, 1-23-5 Shinkawa, Chuo-ku,
Tokyo 104-0033, JAPANTEL: +81-3-6280-3938 FAX: +81-3-6280-3937

Introduction to group companies

ECONECOL Inc.

Kuroda Recycle Co., Ltd.

SYN ECO Inc.

Toyo Rubber Chip Co., Ltd.

NEWSCON Inc.

3WM 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 KatazukeTAI. It has also
received commendation as a distinguishedcompany in the employment of the physicallychallenged.

A recycled rubber pioneer that has madeeffective use of rubber industry resources for halfa century, Toyo Rubber Chip Co., Ltd. develops awide range of applications and contributes to thesafety and security of facilities.

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 maintenance parts
globally. It also promotes global-scale reuseof used cars and maintenance parts throughinternational distribution of usedmaintenance parts.

Tokyo Daiichi Toyo Kaiji Building 4F
1-16-3 Nishishimbashi, Minato-ku, 105-0003
TEL: +81-3-3502-1022 FAX: +81-3-3502-1024

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

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, Maebashi-shi,
Gunma, 371-0215
TEL: +81-27-285-3131
FAX: +81-27-230-6008

Resource Circulation
Business
Global Trading Business
VOLTA Inc.

ASTOCO Inc.

Bright Innovation Co., Ltd.

ARBIZ Corporation

Fuji Eco Cycle Co., Ltd.

VOLTA Inc. performs collection and recyclingof nickel, cobalt, and other minor metals fromlithium-ion batteries and nickel–metal hydride
batteries, as well 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 work andbecoming self-supporting.

Bright Innovation Co., Ltd. engages in
consulting services that support theplanning of environmental strategies andCO 2 reduction strategies, along withbusiness that proposes solutions including
the introduction of renewable energy.

A joint venture with USS Co., Ltd., ARBIZ
Corporation engages in a recycling
business that adopts a unique system forshredding and sorting scrap cars and otherwastes, turning them back into resources.

A joint venture with five household appliancecompanies, including FUJITSU GENERAL
LIMITED, Fuji Eco Cycle Co., Ltd. engages ina home appliance recycling business tocreate a sound material-cycle society thatbalances the environment and the economy.

3507-19 Yamamiya, Fujinomiya-shi, Shizuoka(c/o ECONECOL Inc.), 418-0111
TEL: +81-544-66-3132
FAX: +81-544-66-3133

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

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

14-24 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
Welfare Service Business for
People with Disabilities
Environmental Management
Consulting Business
Consolidated subsidiaries
Affiliates accounted for under theequity method

32

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Resource Circulation
Business

Action Plan

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Financial and non-financial highlights● Net sales● Ordinary■

Financialprofit/ratio(100 million yen)(100 million yen)

500

25

374

400

409

363

338

300

200

10

100

5

0

Jun/2018

Jun/2019

Jun/2020

Jun/2021● Subsidiaries

Ordinary profit ratio (right axis)

25.0
6.1

20

15

0

13.1

● Sales composition by segment

Ordinary profit (left axis)

(％)

7.5

6.0

Other Business

Lithium-ion Battery
Recycling Business

0.8%

0.8%

30.9%

4.5

11.4

3.5

3.1

9.3

3.0

2.8
1.5

Jun/2018

Jun/2019

Resource Circulation
Business

Jun/2020

Jun/2021

Global Trading
Business

67.5%

0● Amount handled by type (OUTPUT)● Precious metals collected■ Gold (left axis) ■ Silver (right axis)

Non-financial

Group
companies

14 companies

472

Number of
employees(consolidated)(regular employees)

Overseassites

9 Sites
7 Sites

578,000 tons

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

RPF and other fuels, raw materials forpaper, etc.

● Number of sites

DomesticplantsFerrousmetalsNumber ofyards

Trading
countries

14

39 countries

Other

57,000 tons
20,000 tons

21,000 tons

Nonferrous
metals

10,000 tons

Rubberproducts

Black mass*

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

recovery rate

8060

600 tons

693,000 tons

94.5%

1,244
70 1,069 71(Gold, kg)

61
53

845

(Silver, kg)

1,200

900

739

40

600

20

300

0

Jun/2018

Jun/2019

Jun/2020

Jun/2021

0

33

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Locations (Domestic)

Group companies

Global Trading
Business

Lithium-ion Battery
Recycling Business14 companies

Domestic sites

Other Business

Domestic plants

ESG Initiatives

9 Sites34

Corporate Data

Number of yards

14

Shipping ports● Ferrous scrapyard

Head office =● Nonferrous scrapyard● Used car yard

Matsumoto City, Nagano
SYN ECO Inc.
ASTOCO Inc.
Azumino City, Nagano
SYN ECO Inc.

Hakodate City, Hokkaido
Kuroda Recycle Co., Ltd.

ASTOCO Inc.

Maebashi City, Gunma

Nagoya City, Aichi

Saitama City, Saitama

3WM Co., Ltd.

● Waste paper yard

Toyo Rubber Chip Co., Ltd.

Hokkaido Port of Hakodate ●ASTOCO Inc.

ARBIZ Corporation
Tokyo
Osaka City, Osaka 3WM Co., Ltd.

NEWSCON Inc.
Onojo City, Fukuoka
Toyo Rubber Chip Co., Ltd.

Niigata Niigata East Port ●ENVIPRO HOLDINGS Inc.
Bright Innovation Co., Ltd.

Hyogo Port of Amagasaki ● ●Niigata Port of Naoetsu ●ECONECOL Inc.

Chiba Chiba Yard ●Yokohama City, Kanagawa ASTOCO Inc.

Chiba Port of
Funabashi ● ●Yokohama City, Kanagawa 3WM Co., Ltd.

Kanagawa Port ofKawasaki ● ●Fujinomiya City, Shizuoka
ENVIPRO HOLDINGS Inc.
ECONECOL Inc.

Shizuoka Port ofTagonoura ●VOLTA Inc.
NEWSCON Inc.

Shizuoka Port ofShimizu ● ●ASTOCO Inc.

Aichi Port of Toyohashi ●Shizuoka City, Shizuoka ECONECOL Inc.

Aichi Port of Nagoya ● ●Hamamatsu City, Shizuoka
Fuji Eco Cycle Co., Ltd.
Kumamoto City, Kumamoto Toyo Rubber Chip Co., Ltd.

Aichi Port of Kinuura ●ECONECOL Inc.
Saga Port of Imari ●Aichi Nagoya Yard ●Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Locations (Overseas)

Lithium-ion Battery
Recycling Business

Overseas sites

Other Business

7 Sites

ESG Initiatives

Trading countries● Sales sites for recycled resources● Business sites for used cars
● Business sites for biomass fuelUK

NEWSCON Europe
Representative OfficeVietnam

NEWSCON Vietnam Representative Office
UAE

Japan Coast Used Cars andSpare Parts Trading

Indonesia

Mine Biomass Synergies
PKS stockyard

Kuantan, Malaysia

Singapore

Chile

Mine Biomass Synergies
PKS stockyard

Mine Biomass Synergies
Pte. Ltd

3WM Chile Import Export
Limitada

Corporate Data

39 countries

35

Contact for inquiries

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