Sustainability
Report2020

Your Partner in Circular Economy

Contents / Editional policy

Top Message

Company Profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Global Resource Circulation Business

Contents

Contribute to Create a Sustainable Society

2

Contents / Editorial policy

3

Top Message

4

Outlook（Business results）

5

Group History

6

Subsidiary Companies

8

Locations10

Sustainability Strategy

13

Activities for the Achievement of SDGs

14

Circular Economy and Our Group Businesses

15

Resource Circulation Business

22

Global Resource Circulation Business25

Used-cars-related Business26

Other Businesses

28

Environment

30

Society

32

Business foundation / Growth foundation

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

Corporate philosophy

HOLDINGS Inc. and the following nine subsidiarycompanies: ECONECOL Inc., NEWSCON Inc.,

Creative Company

Circular Company

Company pursuing virtue

Engage in the ongoing creation of businesses thatsociety needs

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

Pursue the virtue of companies and people, in
perpetuity

3WM Co., Ltd., Kuroda Recycle Co., Ltd., SYNECO Inc., ASTOCO Inc., Toyo Rubber Chip Co.,
Ltd., VOLTA Inc., and Bright Innovation Co., Ltd.
Reporting period- Engage in everyday work in the spirit with which the company-Help each other and lend a hand to others to make your work

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

July 2019 - June 2020

was establishedmore pleasantothers(The report includes some activities and plans beyond- Create new businesses in the spirit of the founder for-Use every material repeatedly, preserving their value for as long

-Do what others don’t do by taking advantage of yourthe period specified above)generations to comeas possible

distinctive qualities- Every employee to exert efforts to become the leading player of-Share the profit and joy with the people you live with

-Be grateful for your life and don’t be arrogant

a business that suits themSupervised by Mr. Yoshiharu Shimizu, Mirai Design Research Institute Enishiya
Effective March 20, 2004

Sustainability Report 20202

Global Resource Circulation Business

Contents / Editional policy

Top Message

Company Profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Top Message

We will exert group-wide efforts to "contribute to create a sustainable society."
As we were coming across a major turning point in history caused by disruptive innovations, COVID-19 came out of the blue andhas brought about enormous confusion. At the same time, the pandemic has shown its power of negating conventional wisdom andcommon sense, bringing forward the advent of digitalization and other necessary changes in many aspects of our lives and society.
The pandemic also gave us the time to reflect on the way we have worked and ponder more than ever how the company should be
run in the future. And most importantly, we have been pushed to a position of asking ourselves again the fundamental and long-term
question: “For what purpose does our company exist?” I believe that the Almighty is testing and making sure that we are truly
pursuing to be a player strongly needed by society in our own business areas.
If we genuinely commit ourselves to our mission to “contribute to create a sustainable society,” we should be able to keep moving
forward, even if we may face whatever turbulence or adversity on the way. Under the present circumstances, we must promote
concrete actions further toward the realization of the mission, in order to overcome the COVID-19 turmoil and come out as astronger survivor.
The best example of such actions is to help create a circular economy. I have come to believe that transformation to an advanced
manufacturing company producing high-quality raw materials and articles out of waste and scrap is the theme that we should focus
on above anything else, in order to realize our mission.
At this major historical juncture that has been brought forward unexpectedly by the pandemic, we will be pushing ourselves tosynchronize the sustainable growth of our company with that of the society and to find our reason for being in helping creating acircular economy as an important element in sustainable social development.
I see it my responsibility to further increase the social, environmental, and economic values of our company, and to reinforce thegovernance that would ensure their sustainability. Equally important for me to do is to “build a platform” filled with good-quality
energy on which the employees and many other stakeholders of ours will be working energetically. With firm resolve, I will execute
these responsibilities of mine.
It is because precisely there must lie our reason for being of contributing to creation of a sustainable society.

Always smile and work for keeps... Go forward

Tomikazu Sano

President, Representative Director

Sustainability Report 20203

Global Resource Circulation Business

Contents / Editional policy

Top Message

Company Profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Outlook (Business results for the fiscal year ended June 30, 2020)

Company Profile

Sales

Ordinary profit / ratio■ Ordinary profit(100 million yen)

363

14

338

12

291

300

10

3.4
10.0

（％）

3.5
13.1

4.0

3.1

2.8

11.4

9.3

8

200

6
4

100

Consolidated subsidiaries(including overseas companies)

Ordinary profit ratio(100 million yen)

374

400

Number of subsidiaries and sites

3.0
2.0
1.0

2
0

Domestic processing sites02017/62018/6

2019/62020/6

Domestic yards

2017/62018/6

2019/62020/60.0

Number of employees by segment

Holdings 43

12
14
10

Resource Circulation Business
439

Other Businesses 40
Used-cars-related Business
39
Global Resource
Circulation Business 30

Total 591
（As of June 2020）

Handling volume（Resources processed, resources processed and distributed,
resources distributed, and final products）

Sales by region

Africa 1%

Final products
12,000 tons

Latin America 2%

Precious metals collected■ GoldResources processed
85,300 tons

North America 3%
Asia 59%

Total

Resources
processed and distributed
98,200 tons

697,400 tons

Japan 35%

Resource recovery rate

SilverGold (kg)94.6 %

1,069

70
60

Resources distributed
501,900 tons

0

800
700

585

20
10

900

739

40
30

1,000

845

50

Silver (kg)
1,100

600

65

53

61

70

2017/62018/6

2019/62020/6500
0Sustainability Report 2020

4

Contents / Editional policy

Top Message

Company Profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Company Profile

Group History

History before the establishment of the company

1950
1978
1992
1997

Mar.

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

Jul.

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

Aug.

Launched a trading business.

Jun.

Installed a large shredding machine in thefactory at head office.

Apr.

Established Fuji Eco Cycle Co., Ltd. as a joint
venture with FUJITSU GENERAL LIMITED.

Jul.

Renamed the company from SANO MARUKA SHOTEN Co., Ltd.
to SANO MARUKA Co., Ltd.

2000

2001

2003
2004

History after the establishment of the company

Company ProfileMay

To transition into a pure holding company, established
ECONECOL HOLDINGS Inc. (Present ENVIPROHOLDINGS Inc.) in Fujinomiya City, Shizuoka.

Company Name

ENVIPRO HOLDINGS Inc.

Jul.

Renamed the company from ECONECOL HOLDINGS Inc. to
ENVIPRO HOLDINGS Inc.

Address●Head Office

2011

Apr.

Acquired a 100% stake in Recycle Support Service LLC.
(Present SYN ECO Inc.), making it a subsidiary.

2012

May

3WM Co., Ltd. established 3WM UGANDA LIMITED (Uganda).

Sep.

Listed on the Second Section of the Tokyo Stock Exchange.

Dec.

Established ECOMMIT Inc. (Present ASTOCO Inc.).

Feb.

ECONECOL Inc. established a Representative Office inVietnam.

Dec.

Acquired a 100% stake in Toyo Rubber Chip Co., Ltd.,making it a subsidiary.

Apr.

Established Bright Innovation Co., Ltd.

Apr.

Invested in MINE BIOMASS SYNERGIES PRIVATED
LIMITED (Singapore) for the stable procurement ofwood biomass fuel.

Sep.

Transitioned to a company with an audit and supervisory committee.

Jan.

Established VOLTA Inc.

2010

2013

Jul.

Launched a plastic recycling business.

2015

Aug.

Established an RPF factory (Refuse Paper and Plastic Fuelproduction factory).

2016

Dec.

Established ARBIZ Corporation as a joint venture.

Nov.

Authorized by the Minister as a resource recovery plant for
automobile shredder residue pursuant to the Act on Recycling, etc.
of End-of-Life Vehicles.

2017

Shizuoka, 418-0075, JAPANTEL: +81-544-21-3160
FAX: +81-544-21-3163

SHINKAWA EAST 2F,
1-23-5 Shinkawa, Chuo-ku, Tokyo,

Jul.

Established 3WM Co., Ltd.

2007

Jul.

Renamed the company from SANO MARUKA Co., Ltd. to
ECONECOL Inc.

Feb.

3WM Co., Ltd. established JAPAN COAST USEDCARS AND SPARE PARTS TRADING (UAE).

Jun.

Acquired a 100% stake in Kuroda Recycle Co., Ltd.,making it a subsidiary.

2019

Apr.

Opened Syn Eco Plaza Azumino.

Jun.

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

2020

Apr.

Established NEWSCON Inc.

2018

87-1 Tanaka-cho, Fujinomiya-shi,●Tokyo Office

2006

2008

Global Resource Circulation Business

104-0033, JAPANTEL: +81-3-6280-3938
FAX: +81-3-6280-3937
Representative
Director

Tomikazu Sano

EstablishedMay 21, 2010

Capital1,524,830,656 yen

Business

Management and operation of affiliatedsubsidiary companies and associated works

Group Companies

Twelve consolidated subsidiaries (including secondgeneration subsidiaries), two equity method affiliates

Listed on the First Section of
the Tokyo Stock Exchange.

Jun.

The first company listed on the Tokyo
Stock Exchange in the industry.
*The Second Section of the TSE in 2013
and the First Section of TSE in 2018

Sustainability Report 2020

5

Contents / Editional policy

Top Message

Company Profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Company Profile

Global Resource Circulation BusinessSubsidiary companies

Resource Circulation Business
By promoting the reuse, recycling, and remanufacturing of goods disposed of as
waste, we offer new value to society, engaging in the effective utilization oflimited resources, waste reduction, and the production of recycled raw materials
from waste.

VOLTA Inc.

Resource Circulation Business

Engaged in the collection and recycling of minor
metals from lithium-ion and other batteries.

ECONECOL Inc.

株式会社
Remanufacturing
東洋ゴムチップ

Recycling
Reuse

Engaged in the recycling of metal scraps and electric/
electronic waste composed of metals and plastics.

Global Resource
Circulation Business

株式会社
東洋ゴムチップ

Used-cars-related
Business株式会社
東洋ゴムチップ

Kuroda Recycle Co., Ltd.
Engaged in a locally-focused recycling business in
Hakodate City and the surrounding Southern
Hokkaido area.

Environmental
Management Consulting
Business

Welfare Service
Business for Persons
with Disabilities

Toyo Rubber Chip Co., Ltd.
Engaged in株式会社
the manufacture and sale of color rubber
chips as東洋ゴムチップ
well as development of a wide range ofapplications of rubber materials, including
playground equipment flooring and railroad crossing
panels.

ARBIZ Corporation
Operates a unique system that crushes and sorts
used cars and other waste, turning them into
resources.

SYN ECO Inc.

Fuji Eco Cycle Co., Ltd.

Engaged in a community-based recycling business
in Matsumoto City, Azumino City, and theirenvirons in Nagano.

A joint venture company with five household
appliance companies engaged in the recycling ofhome appliances.

Global Resource Circulation BusinessWe promote optimal global resource circulation throughthe import/export and trilateral trading of a wide range ofresources including metals, plastic scrap, and biomass fuel.

NEWSCON Inc.
Engaged in the global distribution andsale of ferrous and nonferrous scraps andbiomass fuels .

Other Businesses

Used-cars-related BusinessWe help persons with disabilities secure employment by offering on-the-job training to enhance their skills. In addition, weoffer consulting services specialized in environmental management, including support for companies to develop theirenvironmental strategy and CO2 emission reduction plan.

We stock high-quality used Japanese cars/heavy machinery
as well as used engines and other car maintenance parts,and export them overseas or use them for trilateral trade.

ASTOCO Inc.

株式会社
Supports persons with disabilities all the
東洋ゴムチップ
way from assisting their inclusion insociety, capacity building in knowledge
and skills, to finding jobs.

Bright Innovation Co., Ltd.

3WM Co., Ltd.

Provides consulting services to support
environmental management, as well as
solutions such as the implementation ofrenewable energy.

Engaged in the international transactionsof used Japanese and other cars andmaintenance parts, thus promoting reuseon a global scale.
Consolidated subsidiaries

Equity method affiliates

Sustainability Report 20206

Contents / Editional policy

Top Message

Company Profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Global Resource Circulation Business

株式会社

東洋ゴムチッCompany profile Subsidiary companies

株式会社
東洋ゴムチップ株式会社
東洋ゴムチップ

ECONECOL Inc.

Kuroda Recycle Co., Ltd.

SYN ECO IncVOLTA Inc.

Toyo Rubber Chip Co., Ltd.

NEWSCON Inc.

Since being established in Fujinomiya
City, Shizuoka in 1950, the company
has been engaged in a recycling
business that primarily deals withmetal scrap, a processing and sales
business that deals with recycledmaterials including minor metals,
plastics and biomass.

Since being established in 1922, thecompany has been engaged in acommunity-based recycling businessin Southern Hokkaido, centering
on Hakodate City. It pursues thepolicy of the founder which is to“value anything at hand,” forinstance, by collecting ultrafine
precious metals left in the dust.

The company is engaged in acommunity-based recycling businesssuch as “Mottainai BOX” and“Comfortable Life Support” inMatsumoto City, Azumino City, andtheir environs in Nagano. In 2018 it
was awarded a commendation by thegovernor of Nagano as a distinguishedcompany in the employment of
persons with disabilities.

The company is engaged in thecollection and recycling of minor
metals, such as nickel and cobalt, fromlithium-ion rechargeable batteries,
nickel hydrogen rechargeable batteries,
and other batteries, the demand forwhich is expected to further increase.
It also undertakes the recycling ofcasings other than batteries.

The company is a pioneer in rubberrecycling, making effective use ofindustrial rubber scrap over half acentury, mainly operating in Maebashi
City, Gunma. It manufactures a wide
range of products from the flooringfor play equipment in parks andschools, and the flooring for
gymnasiums, to railroad crossing
panels, which all contribute toenhancing the safety of various
facilities.

Established in April 2020, succeeding
the global resource circulation
business of ECONECOL Inc. With aview to becoming “a company thatbrings the world closer to us,”
NEWSCON
contributes
tointernational resource circulation
through global distribution and saleof ferrous scrap, nonferrous metals,
and biomass fuels.

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

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

1573 Fukazu, Kasukawa-machi,Maebashishi,
東洋ゴムチップ
Gunma,
371-0215
東洋ゴムチップ
TEL: +81-27-285-3131
FAX: +81-27-230-6008

株式会社株式会社

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

Consolidated subsidiaries
Equity method affiliates株式会社
東洋ゴムチップ
3WM Co., Ltd.

ASTOCO Inc.

Bright Innovation Co., Ltd.

ARBIZ Corporation

The company globally supplies highquality Japanese used cars andmaintenance parts through its
overseas sites in UAE, Chile andothers. It also globally promotes thereuse of used cars/maintenance parts
through its international transactionsof used maintenance parts.

The company helps persons withdisabilities find a suitable job andbecome a self-supporting member ofthe public, by training them on how tosustain their livelihood andintegrate themselves into society, in
addition to the job training on relevant
knowledge and skills.

The company offers consulting services
to help companies formulate their own
environmental strategies, CO2 emission
reduction strategies and others, which
are becoming increasingly important totheir operation and management. It also
proposes solutions such as theimplementation of renewable energy.

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

2346 Shimadachi, Matsumoto-shi, Nagano,
390-0852
TEL: +81-263-31-3440
FAX: +81-263-48-3067

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, Nagoyashi, Aichi, 455-0026
TEL: +81-52-619-6600
FAX: +81-52-619-6601

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

Fuji Eco Cycle Co., Ltd.
A joint venture with five household
appliance companies including
FUJITSU GENERAL LIMITED.
Pursuant to the “Home Appliance
Recycling Law,” it is engaged in a
“Home Appliance Recycling
Business” that aims to reduce waste
and the disposal of environmentallyhazardous materials, and to create acircular society where economic
growth and environmental protection
are mutually compatible.
1930-4 Nakagawa, Hosoe-cho, Kita-ku,
Hamamatsu-shi, Shizuoka, 431-1304
TEL: +81-53-523-1152
FAX: +81-53-523-1153

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Global Resource Circulation Business

Contents / Editional policy

Top Message

Company Profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Company Profile

Locations（Domestic）
Domestic sites

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.

Hokkaido Hakodate Port

Saitama City, Saitama
ASTOCO Inc.

Nagoya City, Aichi
3WM Co., Ltd.

Maebashi City, Gunma
Toyo Rubber Chip Co., Ltd.

Tokyo

ARBIZ Corporation

Osaka

ENVIPRO HOLDINGS Inc.

Niigata

Naoetsu Port

Chiba

Sakura City

Chiba

Funabashi Port

Minami Port

NEWSCON Inc.
Bright Innovation Co., Ltd.
ECONECOL Inc.
Toyo Rubber Chip Co., Ltd.

Hyogo
Osaka

Amagasaki Port
Senboku Port

Kawasaki City, Kanagawa ASTOCO Inc.
Yokohama City, Kanagawa 3WM Co., Ltd.
Aichi

Fujinomiya City, Shizuoka

Toyohashi Port

ENVIPRO HOLDINGS Inc.
Osaka City, Osaka 3WM Co., Ltd.
Onojo City, Fukuoka
Toyo Rubber Chip Co., Ltd.
Fukuoka City, Fukuoka
ENVIPRO HOLDINGS Inc.
NEWSCON Inc.

ECONECOL Inc.

Aichi

VOLTA Inc.

Aichi

NEWSCON Inc.
ASTOCO Inc.

Aichi

Kinuura Port

Nagoya Port

Kanagawa Kawasaki Port
Shizuoka

Tagonoura Port

Shizuoka

Shimizu Port

Tobishima New Port

Shizuoka City, Shizuoka
ECONECOL Inc.
Hamamatsu City, Shizuoka

Kumamoto City, Kumamoto
Toyo Rubber Chip Co., Ltd.

Fuji Eco Cycle Co., Ltd.
ECONECOL Inc.

Sustainability Report 20208

Contents / Editional policy

Top Message

Company Profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Company Profile

Global Resource Circulation Business

Locations（Overseas）● Sales sites for recycled resources● Business sites for used cars
● Business sites for biomass fuel

NEWSCON Europe Representative Office (UK)Japan Coast Used Cars and SpareParts Trading (UAE)

3WM Uganda Limited (Uganda)
NEWSCON Vietnam
Representative Office
Indonesia
Mine Biomass Synergies
PKS Stockyard

Kuantan, Malaysia

Mine Biomass Synergies Pte Ltd

Mine Biomass Synergies（Singapore）

3WM Chile Import Export
Limitada（Chile）

PKS Stockyard

NEWSCON Europe Representative Office

NEWSCON Vietnam Representative Office

Mine Biomass Synergies PKS Stockyard

3WM Chile Import Export Limitada

Sustainability Report 20209

Contents / Editorial policy

Top Message

Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Sustainability Strategy

Global Resource Circulation BusinessTo achieve carbon neutral
Commit to become carbon neutral in our business by 2050

Renewable energy 100% in our business by 2030

Carbon neutral by 2050

Through our Resource Circulation Business, we contribute to greenhousegas (GHG) emissions reduction in the product lifecycle. Nonetheless, wedeclare that the GHG emitted from all of our businesses of our Group to becarbon neutral by 2050.
In this way, treatment and recycling operations of all the scrap and waste
we handle, will be performed with net zero emissions.

Resource depletion and climate change are not just two separate issues;
they are closely intertwined with each other as a global social issue. Our
Group's business, which is located at the end of the supply chain andresponsible for Resource Circulation Business, has the characteristics thatenable it to tackle both of these critical social issues through its businessprocess, and we believe that this is precisely the social responsibility that
we should fulfill.

Endless resource exploitation and GHG emissions are detrimental tosustainability. Thus we should find the solution to preserve thePlanet Earth's resources and its natural environment we share in the
future.We will continue to play the role of supporting the social
infrastructure by accelerating resource circulation through circular
economy-related business activities and by making our entire
business operations carbon neutral.

0％

RE100 by 2030

In July 2018, we joined "RE100", which aims to source 100%
renewable energy in our business by 2050. Currently, renewableenergy sources in our group accounts for 17.8%.
This time as we announced our commitment to be carbon neutral by
2050, we reset our target year of RE100 to 2030, which is 20 years
ahead of schedule. This is because we recognize that expanding andaccelerating renewable energy which is the most important measureagainst climate change is an important theme to tackle for ourcompany, which has the mission of "contribute to create a sustainable
society".

2030

Carbon neutral

RE100

We will achieve net zero
GHG emissions by 2050

2050

20 years aheadof schedule
Renewable energy

17.8％

Renewable energy percentage (FY2019)
As of the end of June 2020

Non-renewableenergy82.2％

Sustainability Report 202010

Contents / Editorial policy

Top Message

Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Sustainability Strategy

Global Resource Circulation Business

Sustainability Strategy to overcome non-continuous changes and to sustain business growth■ Mission Statement

The ENVIPRO Group espouses the mission statement, which is to“contribute to create a sustainable society.” The mission statement
demonstrates how our group will contribute to society through ourbusinesses, which is our purpose for existing. It indicates the general,unchanging direction for our group to follow, no matter how thetimes and social environment change. This is also a message to thosepeople who feel empathy with this statement to “work together tothis end.”

Mission Statement

Contributetocreatea sustainable society
Resource Circulation Business■ Sustainability Strategy

To ensure the achievement of the mission above, our group has
developed the Five-year Sustainability Strategy (FY2018 - FY2022).
By focusing on businesses that address unsustainable conditions insociety, we will promote the sustainability of both society and ourcompany.
Based on the corporate philosophy, we will restructure and establish
a set of systematized mechanisms, ranging from the mission and thestrategies to the implementation plans over years. Linking the
Sustainability Strategy with the implementation plans developed byour group companies through the steady operation of the newmechanisms, we will enhance the implementation levels, thereby
achieving our mission.

Goal

To achieve concurrent
sustainability ofsociety and our company

Recycling

Remanufacturing

Reuse

Global Resource
Circulation Business

Sustainability Strategy(Five-year strategy for the period from FY2018 to FY2022)

Sustainability
Strategy

Environment Management
Consulting Business

Key policies

Used-cars-related
Business

Welfare Service
Business for Persons
with Disabilities

Greatly enhance the company’s credibility
in society

Effectively demonstrate the HOLDINGS’ leadershipwithin the group to improve corporate governanceand promote the brandGreatly enhance efficiency in the use ofoperational resources
Consolidate businesses in line with the
Sustainability Strategy for the efficient use ofoperational resources

Greatly enhance productivity
Greatly enhance productivity by making use of newtechnologies and experience

Growth Foundation

Business Foundation

Corporate Philosophy
Sustainability Report 202011

Contents / Editorial policy

Top Message

Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Sustainability Strategy

Global Resource Circulation Business

Identifying material issues for the realization of sustainable development

In modern times, a wide variety of issues have surfaced which put the sustainability of society at risk, such as the impacts of climate change, anticipated shortages of material resources, the declining birthrate and the aging
population. We believe that businesses can play a crucial role in addressing these issues, which will in turn provide them with larger markets and more business opportunities.
In view of our mission statement, which is to “contribute to create a sustainable society,” we examined the strengths of our group and the impact of these issues on business, in addition to requests from society to address
such issues and our purpose for existing. We subsequently identified “material resources” and “energy resources” as two material issues to the company.
By explicitly designating the business strategy concerning these material issues as the Sustainability Strategy, we will firmly promote the implementation of any relevant activities.

■ Process to identify material issues

Step1

Identifying business risks/
opportunities in society

Unsustainable conditions
・Increasing impacts of climate change
・Material resource limitations
・Limitations of fossil fuel consumption
・Losing the spirit of generosity
・Development of Asian countries andtheir limitations
・Decline of developed countries
・Difficulties in sustaining social
infrastructure
・Increasing number of countries with an
aging population
・Increasing adverse effects of short-term
investment

Step2

Exploring sustainability
・Expansion of resource circulation
・Expansion of clean energy
・Development of a service industry
that pursues people’s happiness・Development of an economy that
promotes local consumption of
locally produced products
・Privatization of public infrastructure
・Expansion of ESG investment
・Accelerating electrification,
automation, and networking
・Growth in China/Asia

３つの視点でExaminingissues fromマテリアリテ
ィofを検討
thethree points
view

Elements to identify material issues
1. Impact on business
2. Strength of our group
3. Effects on society

Step3

Identifying material issues

Material Resources

Energy Resources

・Depletion of minor metals/
Shortage of mineral resources

・Climate change/Decarbonized society

・Reduction of waste/scrap(increasing in Japan and thewhole of Asia)

・Energy demand (Asia)

・Increasing demand for renewable energy
・Development of an economy that promotes
local consumption of locally produced
products (Energy, resources)

Sustainability Report 202012

Contents / Editorial policy

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Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Sustainability Strategy

Global Resource Circulation Business

Various activities for the achievement of Sustainable Development Goals (SDGs)

The ENVIPRO Group has specified some SDGs that are particularly
relevant to the business and our mission statement, which is to“contribute to create a sustainable society,” and has been
implementing various activities which contribute to the achievementof SDGs, particularly focusing on those specified above.

Goal 1: Poverty
・With the improvement of the efficiency and the profitability of ourbusiness, including those of the Resource Circulation Business, we will
increase the income of the employees and improve their quality of life.

Goal 3: Health・ We prevent water and soil pollution and contamination by properly■ What are the Sustainable Development Goals (SDGs)?
The Sustainable Development Goals are a collection of international
development goals to be achieved between 2016 and 2030, which was
adopted by the UN Summit held in September 2015. They consist of 17
goals and 169 targets to realize a sustainable world and pledge to leave noone behind.

managing scrap materials at our plants which comply with safety andenvironmental standards.

・ We are promoting new ways of working, including telecommuting

and the flex-time scheme, as part of measures to prevent the
expansion of COVID-19 to employees and the general public.

Goal 4 and 10: Education/Equality
・ Under government sponsored programs such as the pre-employmenttransition support program and the type B continuous employment
support program, we provide an environment where persons withdisabilities are able to acquire knowledge and skills, and support them tobe continuously engaged in rewarding work.
・ We run various employee training programs to improve their skills,
including a business school for employees.

Goal 5 and 8: Gender/Working Environment
・We have created an environment where employees can choose aworking style that fits them best, by introducing various systems
including those for permanent employees with shorter working hours
and telecommuters in order to meet the different needs of employees
including female employees with small children.
・We thoroughly implement measures to prevent work accidents inorder to ensure the safety of employees.
・Envipro Holdings Inc. began recruiting new graduates in fiscal
2019. To build upon the current practice of hiring persons withdisabilities, we will be offering worthy job opportunities for peopleof different backgrounds.

Goal 7: Energy
・ We joined “RE100*1” in July 2018, setting a goal to match 100% of

the electricity consumed in our business activities with electricity
generated from renewable sources by 2050. We have adopted
renewable energy to power our factories, and promote the introductionof renewable-energy power systems such as the installation of solar
panels on factory roofs.
・ We promote international transactions of PKS (Palm Kernel Shell) by
establishing container yards in South East Asia. We will contribute toincreasing the supply of sustainable biomass fuel by expanding our
involvement in the supply of wood pellets in the future.
*1RE100:aglobalinitiativewhichbringstogethercompaniescommittedtousing
100%renewableenergyfortheelectricityconsumedintheirbusinesses.

Goals 9 and 12: Technology Innovation/Consumption and Production
・We contribute to the circulation of limited resources and reducing
waste by engaging in the recycling business to collect precious metals
from metal scrap and waste, and the remanufacturing business to
produce recycled raw materials. Moreover, we aim to establish asustainable consumption and production mechanism by further
developing the technologies and experience that we have nurtured over
the years. To this end, in 2018 we established a new laboratory in
ENVIPRO HOLDINGS Inc.

Goal 11: Community Development“Syn Eco Plaza Azumino” contributes to revitalizing the local
community and the development of a sustainable community throughrecycling and creating employment: the collection and recycling ofwaste and items disposed by households, and the hiring of persons withdisabilities at the factory.

Goal 13: Climate Change
・We contribute to the reduction of CO2 emissions across supply chainsthrough our engagement in the recycling and remanufacturingbusinesses, the mainstay of our company. Furthermore, we promote
CO2 emission reductions in the recycling and manufacturing processes
by promoting the purchase of electricity generated from renewablesources and adopting a renewable-energy power system.
・We help companies reduce CO2 emissions by providing consulting
services for them to formulate their decarbonization strategies as well as
solution services such as the adoption of renewable energy.
・We endorsed the “TCDF (Task Force on Climate-related Financial
Disclosures) recommendations” in May 2019. We will analyze the risks
and opportunities of climate change on our businesses and integratethem into our business strategies.

Goal 14: Marine Resources
・ We contribute to preventing marine pollution caused by plastics bydeveloping technologies which sort waste plastics and recycle theminto pellets, and expanding the range of recycled raw material use.

Goal 17: Partnerships
・We contribute to promoting global resource circulation and the control ofenvironmental pollution through the export of reusable products,
including used cars from Japan and international transactions of resources.
・By joining the following initiatives, we acknowledge our engagement inenvironmental businesses and promote activities which will lead to therealization of a sustainable society.
・Japan Climate Leaders’ Partnership (JCLP)・RE100 ・CDP*2 Scoring partner
・CLOMA（Clean Ocean Material Alliance）*2 CDP: A global initiative concerning the disclosure of climate change-related information.

Sustainability Report 202013

Contents / Editorial policy

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Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Sustainability Strategy

Global Resource Circulation Business

Circular Economy and Our Group Businesses■ What is the Circular Economy?

●Circular Engine of the Circular Economy

In recent years, the circular economy concept has been gaining
considerable attention. This is an alternative economic system to thelinear economy which is characterized by mass-production, massconsumption, and mass-disposal, and the one-way flow of materials.
The circular economy is aimed to reduce wastes and instead use
them circularly as resources.
It is intended to address environmental issues while achieving
economic growth by creating the maximum added value with theminimum investment. This concept is totally consistent with the goalof our Sustainability Strategy, “to achieve concurrent sustainabilityof society and our company.”

The circular economy aims to provide another value for materials
that were once discarded. Our group’s Resource Circulation
Business offers social value to consumers by giving them theopportunity to choose eco-friendly products. It creates new resource
value for disused primary materials. Therefore, our group believes
that we can play a crucial role in the circular economy, performing
the function of an engine for resource circulation.

Focusing on the reuse, recycling and remanufacturing of materials,
we will promote the finest technologies for resource circulation
across supply chains, and the development of collaboration
systems of forward and reverse logistics through partnerships with
manufacturers. Through these engagements, we will grow into a
company that is truly appreciated in a society which isexperiencing a transition to the circular economy.

Roles of Our Businesses in the Circular Economy
Resource Circulation Business(Functions as an engine for resource circulation)
Information concerning the reverse
logistics in the supply chain

Remanufacturing

Recycling

Reuse

Recreating resource value●Risks and Opportunities

The circular economy is expected to change economic models fromthe simple selling of products to the sharing of products, and theOffering New Resource Value/Social Value

selling of experiences and functions. Furthermore, the flow ofPrimary materials
discarded

wastes and resources will be potentially adjusted in accordance with
whoever owns the products.

Designing

Procuring

Manufacturing

Distributing

Moreover, if manufacturers start getting involved in the
procurement of necessary resources or recycled raw materials, theIndustries in the forward logistics

Using

Linear economy

Disposalboundary between forward (product supplying) and reverse(recycling) logistics in the supply chain may disappear, potentiallyleading to new competition among industries. This could posebusiness risks for our group.
On the other hand, there are also various potential business
opportunities such as the expansion of recycled raw material use andmarkets, and the emergence of new business models through thedevelopment of IoT in the industries in the reverse logistics. Ourgroup needs to decide on our positions where we can take themaximum advantage of our strengths.
Sustainability Report 202014

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Resource Circulation Business

Used-cars-related Business

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Environment

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Resource Circulation Business

Global Resource Circulation BusinessResource Circulation Business that enhances the sustainability of a society
Ordinary profit (100 million yen)

Sales (100 million yen)
140

128

12.0

127

120

107

99

100

8.3

8.0
6.0

5.5

4.2

4.0

80
0

9.9

10.0

2.0
2017/62018/6

2019/62020/60.0

2017/62018/6

2019/62020/6

Handling volume (1,000 tons)
300
250

262

262

249

229

200
150
0

The ENVIPRO Group promotes the resource circulation business as
our key business to achieve ourmission statement that is to“contribute to create a sustainable society.” We offer new value tosociety,engaging in the effective utilization of limited resources,
waste reduction, and the production of recycled raw materials fromwaste, by promoting the reuse, recycling, and remanufacturing ofmaterials that were disposed of as waste.

■ Three key businesses

based on differences in their properties. With the use of advanced sorting
technologies based on the above-mentioned technologies aswell as ouraccumulated know-how, it is possible to condense and collect ultrafine
precious metal particles from both waste incineration ash and ASR* thatseemingly contain no precious metals.
Furthermore, with regard to waste plastics, we have achieved arecycling rate of approximately 94.6%, minimizing simple
incineration and landfilling by producing RPF for thermal recycling.
*ASR: Abbreviation of Automobile Shredder Residue. The residue which remains after end-of-use vehicles

Our group operates the resource circulation business, focusing on
the following three businesses as its key components.

are dismantled and shredded to remove chlorofluorocarbons and their parts, such as air bags, doors, and

1. Recycling Business (resource recovery)

2. Remanufacturing Business (re-production)

Our group has been engaged for more than half a century in a
recycling business in which metal scrap, waste and others arecrushed, and physically sorted into ferrous and nonferrous metals,
gold, silver, and copper sediment sludge(mixed metals), plastics, etc.

Our group promotes and actively invests in the “Remanufacturing
Business” which aims to manufacture recycled raw materials outof waste and scrap by taking recycling technologies to the next level.
We are engaged in manufacturing recycled resin pellets from waste

engines, and to collect useful metals.

2017/62018/6

2019/62020/6plastics, rubber chips from waste tire rubber, and recycled cobalt andnickel materials from lithium-ion batteries. To become a manufacturer ofrecycled raw materials for products, we must maintain product quality,
fabricate prototypes, ensure a stable product supply, guarantee delivery
schedules, and others. We need to have totally different viewpoints inorder to develop technologies and business know-how from the recycling
businesses. We are now taking up these new challenges.

3. Reuse Business (reuse)
We are engaged in a reuse business that distributes used products
and maintenance parts without modifying their functionality or
value. The volume of metal scrap and waste will inevitably decreasein Japan where more people share goods and products, and where thepopulation is declining. Therefore, for our group which is engaged in
the resource circulation business based on these materials, ourinvolvement in the reuse business is important from the viewpoint of
securing materials for our key businesses.
Sustainability Report 202015

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Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Resource Circulation Business

Global Resource Circulation Business

Flow diagram of treatment/processing in resource circulation businessIn the resource circulation business, we promote resource recovery and recycle a large variety of used equipment and machinery, ranging from PCs, mobile phones, home appliances, small appliances, industrial equipment, andother electric and electronic waste, to used mechanical equipment, automobiles, and aircraft. To convert these kinds of waste that are composites of metals and plastics back to useful resources, the Envipro Group has developed asophisticated physical separation process that starts with advanced shredding. The sophisticated separation technology enables us to not only separate plastics from metals, but also separate the metals into iron, copper, aluminum,
stainless steel, and gold and silver sediment sludge. In this way, a very high level of recycling of individual resource materials is realized.
Recycling
Materials for
cement production

Composite materials of metals, plastics, and glass are shredded, and separated by magnetic/air separators before undergoing the next separating stage.
Refuse papers, sponges and light dust

Shredding
Shredding materials into
small pieces with a
Magnetic separation
shredder for recycling.
Removing ferrous scrap from theshredded mixture, using separatorswith a powerful magnetic force.

Sorting・ Automobiles

・Microwave oven
・ Photocopiers ・Vacuum cleaners
・Smartphones, etc
・ Monitors

Powerful magnetic force

FerrousmetalsIncineration

Agitation propellers

Air

Air separation
Removing refuse paper,
sponges, and light dust fromthe shredded mixture, using
air separators.

RPF(Refuse Paper and
Plastic Fuel) plant

Separating, using vibrations andupward-moving air currents withthe application of frictional forces.

Producing solid fuels including
RPF (refuse paper and plastic fuel)from waste.

Light particles

RPF
Air

LiquidPlastics (lightweight)

Heavy particles

Nonferrous metals

Wet gravity separation
Depending on the objects to be removed
from the mixture, adjusting the specificgravity of a liquid that is mixed withwater and a specific metal powder, inorder to separate combinations of items
that float and those that settle.

S N S

NS N

Eddy current separation

Global Resource
Circulation Business

S N S

S

N

N SN

Reuse

Remanufacturing

Plastics（heavyweight)

Aircraft

Used-cars-related
BusinessDry gravity separation

ExtruderSeparating non-magnetic metals that are falling due to gravity, using magnetic repulsion.
Plastic pelllets
GoldenandSilver Copper
SedimentSludge

Used car

Aluminum

Plastic for fuelExtruded materials

Manufacturers of raw/basic materials

Shredded steel scrap

CopperAluminum

Plastic for fuel

RPF

Sustainability Report 202016

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Used-cars-related Business

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Resource Circulation Business

Promoting resource recovery of waste

Since its inauguration some 70 years ago, ECONECOL Inc. has
accumulated abundant expertise in the treatment and recycling ofvarious metal resources and has come to possess proprietary
recycling technologies. Through the pursuit of these technologies, it
has established an integrated system to collect metals, plastics, minor
metals, and precious metals from a variety of scrap and wastematerials, and recycle them to resource materials.

■Resource recovery from urban mines
The metals including precious metals contained in waste materials
such as used cars and household appliances are often referred to as“urban mines,” a reserve of many useful resources. However,advanced technologies are required to convert such composite wastematerials into materials ready for use. We shred the “urban mine”
waste materials and apply optimum combinations of magnetic force,wind power, wet specific gravity,
dry specific gravity, color, andother separation technologies toseparate and concentrateindividual materials to achieve ahigh level of resource recovery.
Gold, silver, and copper sediment sludge (mixed metal)■Collection of precious metals from waste incineration ash
Through further advancement of the separation technologies, we havedeveloped a technology to collect precious metals from waste
incineration ash discharged from general waste incineration facilities.
A patent on the technology was issued in May 2019. Waste
incineration ash is normally disposed of in landfills. Our collection
technology contributes to the improvement of the resource recovery
rate and the reduction of the amount of waste incineration ash put tolandfill.
Amount of waste
incineration ash
collected

Quantity of
precious metals
collected fromwaste incinerationash

2,298 tAu (gold)

Global Resource Circulation Business■ RPF production
RPF (Refuse Paper and Plastic Fuel) is a solid fuel that is made bycompressing such waste plastics and paper waste that are difficult to
put to material recycling. It is characterized by stable quality andbeing more environment-friendly than coal or other fuels. We
produce approximately 25,000 tons of RPF per year, and arecontinuously supplying it to paper
mills and other manufacturingindustries for use as boiler fuel.
It is expected to become more
widely used as an alternative fuelto promote recycling.
RPF■Reuse and recycling of aircrafts
In May 2019, we won the tender for two retired dedicated aircrafts of
the Japanese government invited by the Air Self-Defense Force. They
were sold to a US buyer as a reuse and recycling resource to collectaircraft maintenance parts. Unlike selling them just as used aircrafts,
correct valuation of the aircrafts and their parts and components wasnecessary. The know-how we had accumulated over the years on theevaluation and conversion to cash of metals and other composite
materials was key to the success of the transaction. In the UnitedStates and Europe, the current major market for reuse and recyclingof aircrafts, companies who trade used aircrafts are usually different
from those who deal with the recycling of frames and other nonusable resources. We will continue
to contribute to the reuse andrecycling of aircrafts as a pioneer
in providing a one-stop,
comprehensive service ofevaluating and recycling,
capitalizing on its rich know-how
Aircrafton recycling.

■Wide-ranging one-stop services
We offer one-stop services that range from collection, transportation,and disposal of waste to building demolition. Usually, removal ofmachinery and equipment from factories and offices prior todemolition requires separate contracts with multiple companies, eachhaving specific licenses for collection, transportation, or disposal of
discarded articles (including those containing low-concentration
PCB or asbestos), or remediation of contaminated soil after
demolition. We can offer one-stop services encompassing waste
removal and disposal, demolition of structures, and remediation ofcontaminated soil after demolition, thus helping to increase therecycling rate and at the same time reducing the burden and costs on
the part of the customer.

■Promoting responsible recycling
Marking one of the cornerstones evidencing the technologies andtrack record behind its diverse business, we became certified for theR2 Standard in August 2019. The R2 Standard refers to a certification
program managed under the guidance of the U. S. Environmental
Protection Agency to encourage and evaluate
responsible actions for electrical andelectronic equipment recyclers. The R2Standard covers recycling of used electricaland electronic equipment such as mobile
phones, TV sets, and computers. Becauseof the reliability of this certification, R2
certified recyclers are increasingly preferredin the market. We will continue to strive
to promote responsible recycling of electric/
electronic equipment, ITC equipment andR2 certificate
secondary batteries.

Ag (silver)

43.4 kg 361.0 kg
Sustainability Report 202017

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Resource Circulation Business

Global Resource Circulation Business

Recycling of lithium-ion batteries

Lithium-ion batteries (LIBs), which contain cobalt and nickel known
as minor metals, are widely used in mobile devices such as smart
phones and laptops, as well as home appliances. In addition, theglobal decarbonization trend has led to an increase in the amount of
LIB used in electric vehicles. There is a risk that the growing demandfor LIB could raise pressure on the supply and demand balance of
cobalt and nickel in the near future, which has been a cause forconcern.
VOLTA Inc. is engaged in the recycling of rechargeable batteries
such as LIB and Nickel Hydrogen batteries, which have traditionallybeen simply incinerated. By having established a resource circulation
business of minor metals, we contribute to the effective use of limited
resources.

■Establish a safe and rapid recycling process
We are capable of recycling various types of spent LIB that are
generated in town. The physical sorting technologies of the Envipro
Group are fully applied for the dismantling and sorting of the batteries
and the casings. In order to ensure the safety of the neighboring andsurrounding environment, we employ a heat-drying method and no
incineration in the treatment process so as to minimize toxic gas
generation. In addition, we have introduced a unique exhaust gas
treatment system. In November 2020, we successfully received R2
certification with a view to establishing its position as a responsible
recycler.
The currently-operated recycling process can produce concentrated
cobalt and nickel sludge called black mass. We are consideringrefining the black mass in-house in the future for sale of thematerials to customers in the battery-related industry.

■Obtaining a license to treat/dispose of industrial waste
In July 2020, we obtained a license to treat/dispose of industrial
waste. This enables us to handle waste batteries with a low content
of minor metals, thereby expanding our business scope.

Lithium-ion battery treatment flow diagram
Process flow at the plant

Spent lithium-ion batteries

MetalsSquare and laminate type(mobile phones, etc.)

Shredding and separation
Cylinder type(PC, tool, electric bicycle, etc.)

Sorting anddismantling
For vehicle use(EV, HEV, PHV, etc.)

Heating treatment

Shredding and classifying

Aluminum, copper and other metals

Black mass

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

Sustainability Report 202018

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Global Resource Circulation BusinessOne-stop services from removal through disposal of unneeded goods■ Overview of “Comfortable Life Support”
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 a contribution to the community.
Initially, the business was limited to tidying up of individual homes.
As the birthrate declined and aging of the population progressed,
the business scope expanded to include offices, tenants, and largecommercial facilities. The integrated service by the recycling
company covering removal, transportation, and disposal of
unneeded goods helps achieve a high recycling rate of the treatedmaterials, while reducing the client’s labor and cost. Although thecontact point is just one, the network cultivated within theEnvipro Group is mobilized to offer constructive proposals tosolve problems of all kinds.
(i) Tidying up of individual homes
We provide comprehensive service of removing, transporting,treating, and disposing of unneeded goods out of individual homes.
(ii) Removal of unneeded goods out of offices and tenants
We provide one-stop services of removing, transporting, and treating
in-house unneeded goods out of offices, tenants, and largecommercial facilities.
(iii) Demolition of buildings
We are engaged in demolition of houses and stores, as well as thecollection of chlorofluorocarbon gas from air-conditioning
equipment etc.

Disposition of tenant’s unneeded goods

Demolition of a residential house■Community-based recycling businessIn the southern Hokkaido area, demolition and disposition of wooden
houses are increasing. Accordingly, we receive an increasing numberof inquiries for the disposal of wood waste and other waste
construction materials generated from the demolition of buildings.
Also, the need is rising for the management of waste generated by thefisheries industry, one of the core industries in the region. However,there are neither recycling plants nor land-fill disposal sites for such
waste in the nearby area, and appropriate and prompt waste
management is getting more and more difficult.
To respond to these issues, we have added a new shredding line totreat wood chips and waste plastics and to start accepting fishingtools and other hard-to-treat waste.
Operating the existing shredding and separation facilities and the newline together, we improve the capability of treatment in order torecycle those waste into raw materials for wooden products, woodchips as fuel, or cement raw fuel. In this way, we contribute topromoting community-based resource recycling and stimulating the
local economy by enabling comprehensive waste management andrecycling which reduces the amount of waste that needs to betransported to distant sites for disposal.
■ASR Recycling BusinessWe are also engaged in the recycling business of Automobile
Shredder Residue (ASR), which remains after end-of-use vehicles are
dismantled to remove chlorofluorocarbons and their parts, such as
air bags, doors and engines, and shredded to collect useful metals.
ASR contains metal particles that were not collected during theshredding process. By further separating/pulverizing and kneading
ASR, we successfully collect the metal particles and recycle
them as materials for cement production, thereby
contributing to to improving therecycling rates of scrap cars.
There are only a small number of
ASR recycling facilities nationwide.
Hence, our facility in HakodateCity, Hokkaido, accepts ASR fromoutside of Hokkaido.
ASR Recycling Facility

Sustainability Report 202019

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Global Resource Circulation Business

Regional circular and ecological economy through recycling
circulation of resources.
The plant collects reusable resources from local municipalities in
Nagano. In parallel, we collaborate with PTAs of local elementary andjunior high schools, welfare providers, and local J-League footballteam Matsumoto Yamaga FC in the collection of reusable resources so
as to develop community-based recycling activities.

Syn Eco Plaza Azumino■ A recycling facility for regional circular and ecologicaleconomy through recycling“Syn Eco Plaza Azumino,” a recycling facility SYN ECO Inc. opened
in April 2019, collects, recycles, and disposes of bulky waste, specified
home appliances, and resource materials generated in Azumino City asa general waste disposal facility. The facility can accept and treat large
used furniture such as items that the city residents find hard to bring in
directly to the Clean Center, the inter-municipal public treatment
facility. It is appreciated by many residents of Azumino City,
particularly as a rare facility that can recycle the legally specified home
appliances (TV sets, air conditioners, washing machines, refrigerators).

■ Permanent placement of resource materials collection box
We operate 17 collection stations of "Mottainai BOX", a container forthe collection of resource materials, in the Chushin region, the central
part of Nagano. Each of the stations is managed with utmost care to the
local environment to receive used paper, metals, and other resource
materials.
In fiscal 2019, we collected
approximately 6,000 tons of such
resources through this program forour intermediate treatment and thus
contributed to the resource recovery.
A number of companies have agreed
to set up the "Mottainai BOX" intheir premises, contributing to the
local resource circulation.
Mottainai BOX■ Supporting the comfortable life of
local residents
We extend a "Comfortable Life Support", a home pick-up service forpeople who cannot transport bulky waste by themselves. In order to
respond to various requests, we have established a service platform tohelp solve the problems of the local residents, such as discharge,
disposal, or transfer of large furniture and the like and pruning ofgarden trees. Recently we receive more inquiries about estate saleservices. Staff members officially registered as liquidation professionals
provide the services (including in-life clearance), listening attentively to
the wishes of the family members. We also provide one-stop services
from disposal of unneeded goods and building demolition to thenecessary legal paperwork of abandoned houses, being one of thenationwide social problems■ Large shredder for high quality intermediate treatment
Our head office plant has the largest shredder in Nagano used for theintermediate treatment of metals, waste plastics, waste paper, etc . By
taking advantage of the features that shredding gives to the intermediate
treatment, we treat ferrous metals, nonferrous metals, and composite
waste and send each of the recycled materials to manufacturers, whomake them into new products. The treated mixed metals andnonferrous metals are re-sorted and re-made by other groupcompanies, taking advantage of economies of scale as a Group. In
addition, our big used paper packing machine is used to pack different
types of used papers and ship to paper-manufacturing companies tomake recycled paper. In this way, we play an important role in the■ Establishment of an IT-based sophisticated recycling system
In December 2019, we introduced to the shop floor a novel systemusing wearable devices. This enables novice operators to work withmore confidence, as they are navigated by the image and voice
instructions prepared from the expert’s perspective. As a result, work
standardization has become possible, and less skilled workers performthe same work procedures as skilled workers to increase overall
productivity. The system has not only freed skilled workers andsupervisors of the burden of coaching, but also visualized their knowhow and expertise, which helps prevent work errors. In the resource
recovery process of specified home appliances, the recycling rate isdisplayed in a timely manner, and the intake of waste appliances andthe shipping out of collected resources are controlled integrally, so thesystem captures the entire recycling process.

Wearable device

Recycling rate visualized

Sustainability Report 202020

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Manufacturing high-quality recycled materials from waste■Safety technology and universal design
Toyo Rubber Chip Co., Ltd. procures waste tires and offcuts ofindustrial rubber products to make black rubber mulch for recycling.
We also produce color rubber chips out of synthetic rubber.
● Black rubber mulch
Most of the synthetic rubber products found in the market are madefrom petroleum and other virgin natural resources. In contrast, wehave a nearly 80-year long history since 1942 of using waste tires andoffcuts of industrial rubber products as precious starting materials forrecycling. Currently, we procure 5,700 tons of waste rubber materials
annually, and manufacture rubber chips, rubber powders, and otherrecycled raw materials , as well as final products such as rubber
panels for pedestrians. Rubber chips are mainly used for elastic
pavement and cushioning of artificial turf, contributing to the "safety"of people. Rubber powders, which are finer than rubber chips, areused as the raw material for automobile brake linings and as a filler

Black rubber mulch

Rubber panels for pedestrians

Global Resource Circulation Businessfor tires. Rubber panels for pedestrians help reduce accidents atrailroad crossings.
While other companies mostly manufacture standardized products,
we use its unique processing technology to tailor its rubber panel
products to the configuration of the railroad crossing, including any
track intersection and diversion. Our products fill the front-line
needs that cannot be met by off-the-shelf products. They areleveraged by the technical staff’s years of experience and expertise.
● Color rubber chips
We also manufacture color rubber chips using synthetic rubber,
EPDM (ethylene propylene diene monomer). It is used inplayground facilities, nursery school and kindergarten gardens, andnursing homes, public facilities, hospitals, and other safety-criticalsituations, because it is rich in color that can be freely designed tomeet the needs, and reduces the risk of fatal injury in the event offall or stumbling. In addition, we have a drop test machine and haveestablished an in-house system for quality assurance, including
conformity with the HIC1000 safety standard for head injuries.
Furthermore, the color rubber chips suppress temperature rise more
effectively than do black rubber mulch. For this reason, they are usedin artificial turf cushioning and poolside flooring for heat prevention
purpose, thus providing not only safety but also comfort features.

■ Sustainable products made at the RE100 plant
In May 2019, we became an RE100 plant, with 100% of the electricity
used in its plant sourced from renewable energy. Literally, we now
produce sustainable products in a sustainable plant. The electric power
we use at the plant is supplied from the RE100 menu of retail power
operators. In addition, power generated at the Komiya Solar Power
Plant of SYN ECO in Matsumoto City, Nagano, one of our groupcompanies, is used preferably through non-fossil fuel energy
certificate with tracking information.

Color rubber chips

Dekoboko Square in Hibikinada Green Park

Maebashi Children Park

Sustainability Report 202021

Contents / Editorial policy

Top Message

Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Global Resource
Circulation Business

Global Resource Circulation BusinessToward the establishment of a global recycling system
Ordinary profit (100 million yen)

Sales (100 million yen)
250

228

218

200

158

150

5.0

3.0

50

2.0

2017/6

4.4

4.0

100

0

6.0

6.0

201

2018/6

2019/62020/60.0

2.1

2017/6

2.4

2018/6

2019/62020/6

Handling volume (1,000 tons)
600

513

500

595

585

514

400
300
200
100
0

NEWSCON Inc. was established in April 2020, succeeding the global resource circulation business of ECONECOL Inc. To play a role in thecircular economy, we are charged with the responsibility of expanding overseas business of the entire ENVIPRO Group. The NEWSCON
name captures the idea of "the creation of new business on a global scale." We will create unique values in order to become “acompany that brings the world closer to us.”2017/62018/6

2019/62020/6■Products handled
Ferrous raw materials

Ferrous scrap, etc.

NEWS stands forNorth, South,
East, and West,signifying global
operation.

Nonferrous raw material

Nonferrous scrap (stainlesssteel, aluminum, gold and silver
sediment sludge, mixed metal,
etc.)

Biomass fuels

PKS

Wood pellets

Other recycled materials

Waste paper

Used clothes

Waste plastics

Sustainability Report 202022

Contents / Editorial policy

Top Message

Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Global Resource Circulation Business

Global Resource Circulation Business Toward the establishment of a global recycling system■ Core business● Ferrous raw materials
We collect ferrous scrap at ports around Japan, control the quality
according to customer requirements, and sell them to steel mills(blast furnaces and electric furnaces) both in Japan and overseas.
Recently, in response to the expansion of demand for steel in
Vietnam and other Southeast and Southwest Asian countries, wehave opened Amagasaki Yard and expanded the Kawasaki Yard toaccommodate the growing size of bulk ships and port cargo handlingequipment. In addition, we are actively using bulk ships andcontainers to serve small lot and geographically distant customers.
● Nonferrous raw material
The nonferrous metals contained in various types of scrap are
shredded and sorted at the recycling plant of our group company
ECONECOL Inc., and we sell them to major nonferrous smelting
and secondary alloy manufacturers both inside and outside of Japanafter classification according to the quality requirements of eachcustomer. In addition, we are actively engaged in the collection andsale of aluminum and stainless-steel scrap using the yard function.
Recently, we started sale of European E-scrap (circuit boards, etc.)
to smelters in Japan for the supply of minor metals such ascopper, gold and silver.
● Biomass fuels
We sell PKS (Palm Kernel Shells) to customers in Japan as fuel forbiomass-based power plants. PKS is drawing attention as arenewable energy fuel, and demand is expected to expand,particularly in Japan. We stably supply PKS with quality needed by
the consumers after foreign objects removal and moistureadjustment, at the stockyards we hold in Malaysia and Indonesia. We
plan to increase the number of items that we trade, not only PKS but
also wood pellets, new fuels, and others, as well as increase thenumber of the stockyards.

■ International transactions of resources
NEWSCON Inc. has established trading bases mainly in Asia and other countries all over the world to accelerate the internationaltransaction of resources.
RussiaUK➋

EuropeAnnual Handling volume (1,000 tons)

Number of trading countries

30

countries

Sites

Nonferrous metals

Biomass fuels➊ Vietnam Representative Office➋ Europe Representative Office (UK)➌ MBS MALAYSIA➍ MBS INDONESIA➎ MBS SINGAPORE

535
27
22

Ferrous metals

Plastics

South
Korea

Japan

China

India

16

TaiwanBangladesh
Thailand
VietnamPhilippines➊➌

Malaysia➎

Singapore➍

Indonesia

Waste paper● Others
We also sell waste paper as raw material for paper mills, used clothes
as reuse products, and various goods including cosmetics andhygiene products. For waste plastics which are currently at issue,
with a view to helping establish an optimal recycling flow, we arealso selling home appliance-derived waste plastics and industrial
waste plastics to partner companies in Japan and in Asia.

Ferrous scrap loaded into container
Sustainability Report 202023

Contents / Editorial policy

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Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Global Resource
Circulation Business

Global Resource Circulation Business

International network × Diversity × Front-line strength

As a team consisting of diverse members of different backgrounds, we handle a wide range of recycled raw materials generated from various industries.

I am developing suppliers and customers
in Europe for nonferrous metals,
electronic circuit board, and recycledplastics. My current focus is on
developing European suppliers for oursales in Japan, Southeast Asia, andSouthwest Asia. Europe has made worldleading technological investments andhas set up a regulatory regime andpolicies on environmental issues. In
resource circulation business, it isessential to understand and act
accordingly this. As the percentage ofrecycled materials used in products has
been specified by law or as a target,
manufacturing and petrochemicalindustries have begun to enter therecycling market seriously. Goingforward, I hope to pursue the possibilityof selling the superb European
environmental technologies andmaterials to non-European countries,
while keeping a focus on recycledmaterials.

Yukina Mochizuki
Business Support
SectionJoined: 2007

Takuya Matsubara
Ferrous Raw
Materials Section
Joined: 2017

Shinobu Tachibana
EuropeRepresentative Office
Joined: 2019
Sapkota Prabin
Nonferrous
Materials Section
Joined: 2020
Although many people may have theimage of the recycling industry being adirty one, it is for me a “school” where I
can learn something new every day. I
work in the Nonferrous Materials
Section, and I learn many things about
copper, brass, aluminum, and othermetals. By sorting out and analyzing themix metals collected from the groupcompany, ECONECOL Inc., I have
deepened my understanding of
nonferrous metals. I feel more confident
because, in addition to the on-site work I
just mentioned, I have started learning
other works such as sales with seniorcolleagues and export container booking.
In the future, I would like to be able touse my language skills (Japanese, Hindi,and English) to do business with overseas
customers.

Now I belong to the Ferrous Raw
Materials Section of the Recycling
Materials Department. My main
activities are procurement of domestic
ferrous scrap, yard management, andship loading. We have eight yards acrossthe country, and I am responsible forthree of them: Tagonoura, Shimizu, andAmagasaki. One of our company’s
strengths is its front-line strength. We doeverything from scrap purchases to shiploading by ourselves, so we take greatcare in quality control. Although thequality and volume I deal with differ
from one region to another and I need tobe very careful about it, I am very
excited to be able to know everythingfrom purchase to shipment. I would liketo increase the business volume withnew partners, while deepening our
relationships with present customers.

Dang Thi Bich Hanh
Vietnam
Representative Office
Joined: 2019
I came across the nonferrous industry
during the final academic year of myuniversity days in Vietnam. I received ahigh evaluation when I worked as anintern at a local trading company, and I
was officially hired by the company.
There I started my career in thenonferrous industry, which I truly love.
Having been involved in the nonferrous
business in Vietnam for years, I have agood understanding about the country's
demand and market conditions. Now I
am in charge of sales at our Vietnam
Representative Office. While I am
engaged in daily negotiations withcustomers in a fiercely competitivemarket, I am also focusing on
developing new suppliers and customers
who would match well with the raw
materials and services of our company.
Based on my work experience, sales
skills, and market knowledge, I would
like to deliver more value to thecompany as a sales professional.

At Sano Maruka Co., Ltd. (now
ECONECOL Inc.), I started my careerwith the Foreign Trade Department,
where I became familiar with a range ofinternational trade matters frompurchase to overseas sales. After sometime, I got married and became amother, but I did not want to throw
away my business career so aftermaternity leave I returned to work under
the short-working hour program. After
working in sales and support services
for domestic transactions in otherdepartments, I am now back to theinternational trade matters. Recently,
COVID-19 disaster is changing ourwork style, such as telecommuting,flex-time, and no uniform. For a motherof three children, the new way ofworking gives me more flexibility andmakes it easier to balance my family
time and work. I intend to continue
doing my best on both child rearing andwork.

Sustainability Report 202024

Contents / Editorial policy

Top Message

Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Used-car-related Business

Global Resource Circulation Business

Cross-border circulation of resources
Ordinary profit (100 million yen)

Sales (100 million yen)
80

2.0

63

60

65

61

1.7
56

1.5

40

1.0

20

0.5

0

0.0

2017/62018/6

2019/62020/6

Number of used cars shipped

1.2

0.3
0.1
2017/62018/6

2019/62020/6

Number of containers holding shipments of used car
maintenance parts
400

6,000

5,232
5,000

4,622

348

350

4,773

330

329

324

300

4,000

3,231
250

3,000
0

3WM Co., Ltd. exports to overseas countries used cars, trucks, andheavy machinery generated in Japan, and the engines and other parts
disassembled from end-of-life vehicles. Export products and parts are
sold directly to buyers through subsidiaries in UAE, Chile, andUganda. In addition, we provide contract services for shipping
arrangements, export customs declarations, and other logistic
operations. For the Japanese market, we are engaged in the businessof purchasing used trucks for export and renting campers for general
consumers. We are working to utilize the Internet for our business,
including the launch of a special website for booking.
In Uganda we set up a service garage in 2015. Today it caters to not
only individual customers but also local and Japanese corporations,embassies of various countries and UN agencies, and major taxicab
companies. Skilled Japanese mechanics are stationed there and theytrain the local staff. In this way, the same level of high-quality service
as in Japan is provided, which has led to strong trust in us among our

2017/62018/60
2019/62017/62020/62018/6

2019/62020/6customers. We are happy to have become a preferred service garage
in the country. Going forward, we will continue to strive to provide
high-quality services to ensure safe and prolonged use of reused
resources, in addition to promoting circulation of resources.
International transactions of used carsand maintenance parts(Luxury cars)

Japan
Middle East (UAE)

UgandaKenya

Bangladesh
Thailand Viet Nam
Cambodia The Philippines

Trinidad and Tobago

Malaysia
Singapore Indonesia

Exporting to the neighboring countriesof Chile

LegendSingapore → Chile
Used cars
TrucksUsed car maintenance parts
Heavy machinery

Southeast Asia

UAE → Chile
Japan → Chile

New ZealandSustainability Report 202025

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Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Other Businesses

Global Resource Circulation BusinessApproaches to social issues■Support of Continuous Employment Type B[Ecommit]
For those with disabilities who find it difficult to work in a generalcompany, we prepare places where they can participate in social life
with self-confidence and purpose in life. Based on individual support
plans drawn up according to the respective disability conditions, we
provide developmental support, support for acquisition of knowledge
and skills, training for light work, and the job opportunities that are
made available in cooperation with the Group companies, local
companies and farms, etc. The participants with disabilities receive
wages in accordance with their performed work.
C : 50
M: 0
Y : 100
K:0

C:2
M : 37
Y : 86
K:0

R : 159
G : 194
B : 56

R : 228
G : 177
B : 59Yearly total number of people registered
700
600■ Employment transition
Type B

682

500
400

407
358

found
employment

307

300
200

152

100
0

ASTOCO Inc. supports the self-reliance of people with disabilities intheir employment and community life through provision of welfare
service for persons with disabilities.
Today, the declining birthrate and aging population, and the resulting
shortage of the work-age population are serious social problems. The
April 2018 revision of the Act on Employment Promotion, etc. of
Persons with Disabilities added persons with mental disabilities to thebasis for calculation of the statutory employment rate of persons withdisabilities. In March 2021, the statutory employment rate is to be raised
to 2.3%. These circumstances are pushing forward the employment of
persons with disabilities as workforce. However, the number of people
who change their jobs in a short period of time is also increasing
because of poor match with the work environment or the type of work.
We continue to approach these social issues through our welfare service
for persons with disabilities with a view to opening the ways to theirsolution. Specifically, many of those with developmental disabilities areunable to participate in social activities because they have received
neither due assessment (collecting information about their backgrounds
and current situations, and identification of their problems) nor
necessary support. We have in-house experts, who are working

hard to improve these situations.
Furthermore, we arrange for experienced retired professionals to serve
as lecturers of the seminars we organize. These lecturers tell theparticipants about the enjoyment of living in a community, in addition
to sharing knowledge and personal experiences.
We believe that there are still latent social challenges we must address.
We will continue our efforts to "create a place where tomorrow will bebright", the vision from which our company name (in Japanese) is
derived.

■Employment Transition Support [Bright]
We offer a variety of seminars and training courses necessary for job
seekers with disabilities. We provide support for job hunting activities
such as resume preparation and interview practice, as well as support
for employment retention in the workplace.

18 people

551

July 2019 – June 20202018/6

2019/62020/6■Satellite Work Business
To help solve problems of companies finding it difficult to respond
appropriately to the disability characteristics, we support creation of awork environment and work-style that best fit the individual withdisabilities.
■Support Manager for persons with developmental disabilities
As a support manager for persons with developmental disabilities
commissioned by Nagano prefecture, we provide coordination services
for consultation and cooperation among persons with developmental
disabilities and related organizations.
ASTOCO Inc. offices■Bright■Ecommit

Bright Matsumoto

Ecommit Azumino
Bright Matsumoto
Ekimae Center
Bright Saitama

Examples of seminars and training courses

・Business manners seminar・PC skills seminar・Self-management seminar・Communication skills seminar
・Work/light work training course

Bright Musashikosugi

Ecommit Azumino

Ecommit Fujinomiya

Sustainability Report 202026

Contents / Editorial policy

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Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Other Businesses

Global Resource Circulation Business

Provision of consulting services integrated with solutions■ Promotion of decarbonization and response to climate change
Since the Paris Agreement entered into force in November 2016,global efforts for decarbonization have been accelerated. Companies
are required to reduce greenhouse gas (GHG) emissions throughout
their supply chains, including their own operations, and otherwise
respond to the aggravating climate change problems. BrightInnovation Co., Ltd. supports companies' efforts to meet these social
demands through consulting services such as formulation of ScienceBased Targets (SBT) for GHG emissions reduction, information
disclosure support, and improvement of ESG scores including CDP.
In addition, we offer integrated services tohelp achieve CO₂ reduction by proposing
decarbonization strategies combined withintroduction of renewable energies and otherspecific solutions.

■ Accelerating circular economy
In recent years, efforts toward the realization of a circular economy
have been given larger weight than before, reflecting the increasing
severity of pollution by marine plastics and others. We provide
consulting services for the construction of closed-loop circular models
through conversion of plastic containers back to recycled raw
materials and their use for containers production, as well as chemical
and material recycling of waste plastics. In addition, we areresponding to the needs of companies to promote circular economy byproviding a consistent range of consulting and solutions incooperation with the Group companies that are engaged in the
resource circulation business. Thus, we will continue contributing to
the realization of a sustainable society by enhancing resource
circulation and decarbonization throughout the entire product life
cycle.

Carbon management consulting & solutions
Vision /strategydevelopment● Climate change response, long-term sustainability vision /strategy development● SBT setting for GHG emissions reduction● GHG emissions reduction planning

Information
disclosureand rating
improvement● Response to the TCFD recommendations● Environment / sustainability information disclosure● Answering CDP / DJSI, and rating improvement● Climate scenario analysis● ESG rating improvement● RE100 planning

Carbonmanagement● Research on climate change-related policies and emission credits

in Japan and overseas●

Procure renewable energy certificate●

Procure renewable energy● Scope 1, 2, and 3 emissions calculation●

Introduce renewable energy● Calculation of contribution to emissions reduction of products●

GHG emissions reduction at overseas business establishments

Research andcalculation● Global company benchmark research for environmental

management and climate change responses

Solutions● Internal carbon pricing

Circular economy consulting & solutions
Consulting

Solutions

コンサル領域の拡大

Circular economy business planning
サーキュラーエコノミーコンサルティング＆ソリューション
Construction of discarded products and waste● Circular economy vision / strategy development

Vision /strategydevelopment

Businessmodel launch● Purpose setting for circular economy business●●collection schemes● Searching circular economy business partners

Reuse
RecycleRemanufacturing
資源循環事業を行うグループ企業との連携でコンサルティングからソリューションまでの一貫サービスを提供● Circular economy business cost analysis

Circulareconomy● Circular economy-related researches● Circular economy global corporation benchmark

research● Research on procurement possibility of secondary
raw materials (recycled raw materials)● Research on quality of secondary raw materials

Resource Circulation Business of the Group
Collaboration

Research

Solutions

クライアント● Treatment of waste (shredding, separation, washing)● Waste collection ● Recycled plastic pellets● Secondary raw materials processing and manufacturing● Procurement and supply of secondary raw materials● Use development for secondary raw material-based products

サーキュラーエコノミーコンサルティング

サーキュラーソリューション
● 廃棄物の加工（破砕･選別･洗浄）● 廃棄物の回収

ビジョン戦略策定

モデル事業化● 廃プラペレット化● 2 次原料加工･製造● 2次原 料の調達･供給● 2次原料製品用途開発

連携

リユース

リサイクル

リマニュファクチャリング

グループ資源循環事業

Sustainability Report 2020

27

● 廃棄物の加工（破砕・選別・洗浄） ● 廃棄物の回収

Contents / Editorial policy

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Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Promoting decarbonization and expanding renewable energy
Actual and target power consumption and renewable energy percentage

RE100

Power consumption (GWh)

25.00

20.00

100.0

19.19

80.0

60.0

10.00

40.0

5.00

0
2018/6■ RE100 target year moved up to 2030
The Group joined the "RE100*" in July 2018. In October 2020, we
moved up the target year of achieving RE100 to 2030. With the newtarget year in sight, we are introducing renewable energy at plants
and offices of each company. In fiscal 2019, we installed solar panelson the roof of the manual dismantling plant of ECONECOL, Inc.,and the captive power supply began in February 2020. In addition,
the head office of Envipro Holdings Inc. switched its purchased
power entirely to that of RE100 menu in May 2020. These efforts
raised the share of renewable energy
in fiscal 2019 to 17.8%, a significant
increase from 2.9% in fiscal 2018.

18.77

15.00

0

■ Carbon neutral by 2050 declared
In light of the Paris Agreement coming into force in 2016 and theensuing global moves toward decarbonization, the Envipro Grouphas decided that it will achieve net zero GHG emissions from its
entire businesses by 2050. In order to achieve our GHG emissions
CO2 emissions results and goal
reduction target, we will（t ）promote efficient use and16,00014,07513,017
14,000decarbonization of energy
11,903
12,00010,000and enhance information
Goal
8,000
disclosure and engagement,
6,000
4,000
0
thereby realizing both
2,000
decarbonization and0
2018/6
2019/62020/62050
circular economy throughour business operations.

18.29

2.9
2019/620.0

17.8
2020/6

0.0

Renewable energy percentage (%)

Environment

Global Resource Circulation Business

2030■ Efforts toward acquisition of SBT
Given the aggravating adverse impacts of climate change, the goal of
keeping the temperature rise to less than 1.5°C from the era of theIndustrial Revolution is becoming the global standard. The Group has
begun to compute its GHG emissions at the Scope 3 level for some ofits operations, with a view to acquiring an SBT (Science-Based
Targets) to achieve the 1.5°C target. Starting next fiscal year, we will
work with suppliers and customers so that our Scope 3 emissions canbe computed for all of our applicable operations.
*For fiscal 2019 results, please see P. 29.

*RE100: a global initiative bringing together companies committed to attaining 100%
renewable energy for the electricity consumed in their businesses.

Sustainability Report 202028

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Used-cars-related Business

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Environment

SocietyBusiness foundation / Growth foundation

Environment

Materials balance

INPUT

Scrap and waste 720,800 tons*

Resources processed

Resources distributed

OUTPUT

Recycled raw materials, products, 726,600 tons*1
and waste

1

Energy / Water
62.8 TJ

Metal scrap

142,100 tons

Ferrous metals

33,100 tons

Fuels

Mixed waste

43,400 tons

Nonferrous metals

11,700 tons

Electricity

18.8 GWh

Waste plastics

900 tons

Raw materials for plastics

100 tons

Water

146,000m3

Scrap cars

9,100 tons

Raw materials for fuels

29,200 tons

Electronic waste

14,500 tons

Wood chips

1,500 tons

Wood scrap

2,600 tons

Raw materials for paper

6,900 tons

Wastepaper

7,300 tons

Raw materials
from used clothes

Used clothes

1,000 tons

Others2,100 tons

Waste batteries

700 tons

Subtotal

85,300 tons

Ferrous metals

98,200 tons

Resources processed

Resources processedand distributed*2

700 tons

Subtotal

221,600 tons

Ferrous scrap

430,100 tons

Ferrous metals

436,100 tons

Nonferrous metals

21,200 tons

Nonferrous metals

27,400 tons

Waste plastics

1,100 tons

Raw materials for plastics

1,900 tons

Wastepaper

13,600 tons

Raw materials for fuel22,000 tons

Used clothes

300 tons

Raw materials for paper

14,400 tons

Wood pellets/PKS
Used cars/trucks

Raw materials

Global Resource Circulation BusinessResources distributed

22,000 tons
2,962

Subtotal* 2

488,300 tons

Raw materials
for rubber chips

11,000 tons

*1 Sum of resources processed, resources distributed, and raw materials *2 Exclueding used cars/trucks

3,231

Used cars/trucks
Used maintenance parts

Final products

329 containers

Subtotal* 3

501,900 tons

Rubber chip-based products

12,000 tons

Total (handling volume) *4

697,400 tons

Material recycling

6,800 tons

Thermal recycling

12,000 tons

Simple incineration

1,000 tons

Landfill

9,400 tons

Recycling

Waste disposal*1 Sum of handling volume, recycling, and waste disposal *2 Amount of resources processed which are
distributed to overseas etc *3 Excluedes used cars/trucks and used maintenance parts *4 Sum of resources
processed, resources processed and distributed, resources distributed, and final products

CO2 emissions ( Scope1+2 ) 11,902 tons
Scope1

4,234 tons

Scope2

7,668 tons

CO2 emissions ( Scope3 ) 92,000 tons
Category 4*

Upstream transportationand distribution

92,000 tons

*Category 4 = (Logistics cost for procurement (million yen) + Logistics cost for transportation (million
yen) x Emissions per unit (t-CO2 / million yen)

Resource recovery
*
rate

94.6％

*Resource recovery rate = (Resources processed +Resources processed and distributed from OUTPUT)/ (Resources processed + Resources processed and distributed + Simple incineration + Landfill fromOUTPUT) x 100

Sustainability Report 202029

Society

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Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Global Resource Circulation Business

Activities to enhance safety and security in the workplace
is an important issue for the entire Group, regardless of the type ofbusiness operation, that we have begun to commonly share the caseexamples and effects of risk prediction activities at the Group’s
Environmental Safety Committee*. As a result of this extension, thenumber of industrial accidents in the Group decreased by 50%
compared with the previous period.
* Now renamed Environment and Safety Promotion Committee

ENVIPRO HOLDINGS Inc. places its highest priority on creating asecure and safe working environment. However, the number ofindustrial accident cases has been increasing over the past four years
and countermeasures were needed. The following are the safety
activities we are undertaking to reduce the risk of industrial
accidents and to ensure the safety of workers:■Development of risk prediction activities
At ECONECOL Inc., we put together the safety activities andpractices of the Engineering Department, which had no industrial
accidents at all for about eight years, and extended to otherdepartments of the Company the risk prediction practice that every
employee performs as daily routine. We learned that the routine risk
prediction practice not only nurtures common understanding about thedangerous spots of the day’s work but also ensures that all workers
clearly understand what they must do to get the work done correctly.
The extension of the risk prediction activities was made generally in a
unified manner but with necessary modifications and adaptations
agreed with the managers of production departments operating withmachinery and equipment, and with many workers. Each such plant
has installed a bulletin board on which risk prediction tables andcharts are put up, and they are updated every day by each crew (bythe shift team in the case of shift work). The program was extended
with necessary modifications also to sales departments, including
logistics teams, while its effectiveness was verified.
As a result of the internal
extension of the risk prediction
activities, the Company
experienced a 70% reduction in
the number of industrial accident
Posting of the risk prediction table & chartcases from the previous period.

■Horizontal extension within the GroupThe program is extended “horizontally” to other member companiesof Envipro Group, while monitoring the progress of its internal
extension at ECONECOL. Especially, Kuroda Recycle Co., Ltd. andSYN ECO Inc. are in the same waste recycling business and wereconsidered to have very similar risks. In addition, as risk prediction■Growing activities
The Environment & Safety Promotion Committee takes the lead indeveloping measures not only on safety aspects but also on the work
environment and plant management aspects. As we need to cover awide range of areas, we share the efforts and information of a Group
company with other member companies for effective and efficient
adoption.
We are planning information sharing and horizontal extension of theintroduction and performance of drive recorders on forklifts. Group
companies that have plants or yards often use forklifts, and many of
the Group’s industrial accidents have involved forklift operations. We
are hoping this group-wide program will be not only useful forinvestigating accidents and taking remedial measures but also
conducive to increased awareness about the importance of safe
forklift operations.
We will keep promoting continual
improvements by the Group
companies so as to “solidify the
corporate brand of being a safe
and clean company.”
Changes in the number of industrial accident cases
30
25
20

26
20

20

15

13

10
5
0

2017/62018/6

2019/62020/6

Forklift with drive recorder

Sustainability Report 202030

Society

Contents / Editorial policy

Top Message

Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Global Resource Circulation BusinessToward a workplace where everyone shines■ Creating a work environment where women can play more
active roles
For the sustainable development of ENVIPRO Group, we must
create a work environment where every employee can show his/herfull potential and where people of different backgrounds can keep
working together. We place a special emphasis on creating a friendly
work environment for female employees. We are active in updating
our programs and measures to facilitate full use of maternity andchildcare leave (“maternity/childcare leave”) and return to work.
We interviewed two female employees of our Group about theirexperiences with maternity/childcare leave.
(Left): ENVIPRO HOLDINGS Inc.
Yuri Ando(Right): SYN ECO Inc.
Arisa Naka

Q Did you have any concerns before taking the maternity/childcare leave?
● Ms. Ando
A: I was not sure if I could finish passing over my work properly intime for my maternity leave. I listed the tasks I was assigned to do
and discussed with the manager how to allocate them to mycoworkers. With the help of the manager, I was able to pass over thetasks systematically and in time without omission. I was a bit
concerned that I might not be able to do a smooth handoff of one of
my tasks which is done only once a year, but the department
manager kindly arranged for an appointment and I was able to have agood meeting with the client and my successor.
● Ms. Naka
A: I had hardly any concerns, but it so happened that I had to be
excused from work unexpectedly earlier than my scheduledmaternity leave period. I was worried because I could not haveenough time for passing over before starting my maternity/childcare
leave.

Q Did you have any concerns about your return to work?
How did you cope with them?
● Ms. Ando
A: I was worried whether I could satisfy the requirements of both
work and childcare after my return. Fortunately, I have many senior
female colleagues who had returned to work from maternity/childcare leave at ENVIPRO HOLDINGS and ECONECOL. I
consulted with them to let my worries go away.
● Ms. Naka
A: Although there were many people who had successfully returned
to work after maternity/childcare leave in ENVIPRO Group as awhole, I was the first one at SYN ECO. It was rather hard to imagine
what it would be like when I go back to work. One big concern waswhether I would be able to perform my previous tasks smoothly upon
my return to work. But I felt greatly relieved because I was given
enough time for the switchover and for re-familiarization. I am also
appreciative of the very friendly working environment, such as
considerate attention about the amount of work, the work hours, paid
holidays, and the introduction of the work from home system.
Q What was good about your return to work?
How did the people around you react?
● Ms. Ando

A: When I returned, the people in the workplace gave me a warm
“Welcome back!” I am really grateful to the people around me who,
for quite some time after I came back to work, cheered me up withwords like “Don’t work too hard” and cared for me when I had toleave the office early because my child caught a fever all of asudden.
● Ms. Naka

A: I was very happy when one of my colleagues told me that: “I am
glad that you managed to be back.” I am glad to be back, eventhough I realize that my work schedule is not the same as before andthat must be causing some extra burden on lots of people. I should
add that, during my maternity/childcare leave, many people in theGroup were kind enough to do necessary follow-up and support. I
have found that the tasks I used to do are now more streamlined andefficient. I am performing my service more smoothly than before theleave.

■ Supporting persons with disabilities
For the growth of a sustainable society, it is a must to prepare schemes
and an environment for persons with disabilities to have stable job
opportunities, and to extend necessary support for their self-reliance.
We promote collaboration among the member of our Group
companies to extend continual support for persons with disabilities towork actively.
ASTOCO Inc.
Developmental Disability Support Manager
for the Matsumoto Subdivision
Fumihiko Shimbo

In fiscal 2013, Nagano prefecture assigned a "developmental
disability support manager" trained and certified by the prefectural
government in each of the 10 Healthcare and Welfare Zone for
People with Disabilities of the Prefecture. I started my service for
persons with developmental disabilities in this framework. As I workon my everyday service, everyone calls me by the abbreviatednickname "SAPOMANE". The role of the developmental disability
support manager is, rather than providing assistance directly topersons with developmental disabilities or their families, constructing
support systems in the subdivision by sending information to theassistance providers and related organizations, building networks,
consulting, and giving advice at interviews and meetings.
In response to a single phone call, I visit health centers,
kindergartens, nursery schools, elementary and junior high schools,
senior high and technical schools, universities, companies, welfare
facilities, medical institutions, employment support organizations,judicial institutions, and administrative agencies. There are still manythings to be done, but with the help of people around me, I am
determined to do my best in acting as a “coordinator” between thelocal community and the persons with developmental disabilities andtheir families.

Sustainability Report 202031

Contents / Editorial policy

Top Message

Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Business foundation / Growth foundation

Global Resource Circulation BusinessCorporate Governance■ Board of Directors
The Board of Directors of ENVIPRO HOLDINGS Inc. is composed of
11 directors, six of whom are outside directors (three of whom aremembers of the Audit and Supervisory Committee) and, in principle,
meets once a month. The Board of Directors makes decisions on
matters important to the execution of the Company's business andoversees the execution of directors ' duties. In fiscal 2019, the Board of
Directors met 13 times, and all directors attended all meetings.
At the meetings of the Board of Directors, the President andRepresentative Director acts as a chair, respects all other directors andencourages them to express opinions, not from the viewpoint of shortterm benefits, but rather to discuss even seemingly irrelevant policies
or measures and other matters from the perspective of medium- tolong-term business growth.
■ Outside directors of ENVIPRO HOLDINGS Inc.

We believe that corporate governance is an important business foundation as well as a precondition to strongly promoting goal achievements.
To promptly respond to changes in the economic environment, we strive to implement both prompt decision-making along with efficient andtransparent management, and to continuously improve our corporate value. To this end, we will keep evolving to verify and operate themanagement and internal control systems, and enhance their effectiveness.
Corporate governance system
General meeting of shareholders
Election / Dismissal

Election / Dismissal
Audit / Supervision

Board of Directors
Question

ProposeAppointment / Supervision / Dismissal

Audit corporation

Collaboration

Reporting
ReportingAppointment and Remuneration
Committee

Internal Audit Department

Representative Director

Collaboration

Instruction

Management Committee

Instruction

ReportingAccounting Audit

Instruction

Reporting

Departments / Group Companies

Internal Audit

Hwang Kyu Chang (Independent Director)
Elected as an Outside Director because Professor Hwang can offer valuable advice to thebusiness strategy development of the Group, based on his academic knowledge as a scholarof economics.
Mr. Keiji Miyaki (Independent Director)
Elected as an Outside Director because Mr. Miyaki can offer valuable advice to thebusiness strategy development of the Group, based on his broad global knowledge andexperiences on business management gained, among others, by his service as therepresentative of an international consulting firm.
Mr. Shoji Ide (Independent Director, Chair of Audit and Supervisory Committee)
Elected as an Outside Director because Mr. Ide can offer valuable advice to the businessstrategy development of the Group, based on his experiences as a former top managementof a publicly listed company.
Mr. Naoyoshi Komuro (Independent Director, Member of the Audit and Supervisory Committee)
Elected as an Outside Director because Mr. Komuro can offer valuable advice to thebusiness strategy development of the Group, based on his experiences as a former city
mayor.

Consultation

Internal Control Committee· Environment and Safety Promotion
Committee· IT Promotion Committee· Human Resources and Labor Reform
Committee· Business Operations Reform Committee

Audit and Supervisory Committee

Election / Dismissal
Collaboration

Mr. Yoshiharu Murakami (Independent Director)
Elected as an Outside Director because Mr. Murakami can offer valuable advice to thebusiness strategy development of the Group, based on his experiences as a top managementof a publicly listed company.

Mr. Takashi Wada (Independent Director, Member of the Audit and Supervisory Committee)
Elected as an Outside Director because Mr. Wada can offer valuable advice to the businessstrategy development of the Group, based on his experiences as a former top managementof a major subsidiary of a publicly listed company.

Sustainability Report 202032

Contents / Editorial policy

Top Message

Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Global Resource Circulation BusinessBusiness foundation / Growth foundation | Corporate Governance■Audit and Supervisory Committee
The Audit and Supervisory Committee consists of three Outside
Directors. In addition to attending the General Meetings ofShareholders and Meetings of the Board of Directors, the directors
who are members of the Audit and Supervisory Committee actively
participate in various meetings of the Company to better understandthe situation of the Company, including the management system andthe execution of businesses. Furthermore, the Audit and Supervisory
Committee meets regularly with the President, Representative
Director to exchange views and maintain close communication on
issues that the Company must address, the situation of theenvironment for auditing by the Audit and Supervisory Committee,
and other important matters pertaining to audit.
In order to maintain close collaboration with the Internal Audit
Department and the Accounting Auditor, the Audit and Supervisory
Committee holds liaison meeting regularly with them and otherwise
exchanges information actively to enhance the auditing functions.
The Committee conducts adequate audit by collecting informationfrom internal control departments, in addition to the one from Internal
Audit Department.
■Appointment and Remuneration Committee
The Appointment and Remuneration Committee is composed of six
members comprising one Representative Director, one full-time
Director, and four Outside Directors who are independent directors.
As an advisory body to the Board of Directors, the Committee holds
preliminary deliberations on the nomination of candidates for
directors (excluding those who serve as members of the Audit andSupervisory Committee) and their remunerations.
■Management Committee
The Management Committee is composed of the full-time directors
and the Chair of the Audit and Supervisory Committee, and may bejoined by some executive officers, department managers, as well assome members of the Board of Directors of the Group companies, as
required depending on the matters to be deliberated. In principle, theCommittee meets at least once a month. The Management
Committee makes decisions on matters important to the execution of
the Company's business and on their timely disclosure of
information.

■Sustainability Committee
In fiscal 2018, we newly looked deeply into the relationship between
the Envipro Group's business activities and social issues, andformulated a “Sustainability Strategy” to achieve harmonious
sustainable development of both society and our Group. The
Sustainability Committee is engaged in flexible and vibrantdiscussions and examination of the progress and future direction of
the strategy from a long-term perspective.
The Sustainability Committee consists of the full-time directors andsome executive officers, and meets every month. The matters
discussed and examined include the feasibility of a new business inlight of the Strategy, establishment of the business and growth
foundations, and synergy effects among the Group companies. Whenfirmed up, the directions and specific measures are submitted to theBoard of Director, etc.
Interview:■ Internal Control Committee
The Group has established an "Internal Control Committee," chairedby the President of the Company. The Internal Control Committee
has four sub-committees: the Environmental Safety Promotion
Committee, the IT Promotion Committee, the Human Resources andLabor Reform Committee, and the Business Operations Reform
Committee. The Internal Control Committee identifies risks,
formulates countermeasures, and constructs and operates internal
controls across the Group, including awareness-raising activities.
The Internal Control Committee is convened on a quarterly basis, inprinciple, to hear reports from the presidents of Group companies
and members of the subcommittees with respect to importantcompliance matters, litigation and other legal risk matters, and othermatters that may have a major impact on the management, before it
sets policy and makes decisions.

Director Ide, Chair of Audit and Supervisory Committee● Could you tell us about your business career?
I joined an IT company affiliated with a manufacturing company. But I
spun off in 1973 to set up an independent company with the owner andabout a dozen employees. Thirty years after its establishment, thecompany made an IPO to the second section of the Tokyo Stock
Exchange. Helped by the good market sentiment at the time, we weresuccessful in moving up to the first section in less than a year. Although
the company was family-owned, I served as its president for six years
from 2003. Because of that experience, I came to be acquainted with
ENVIPRO and was asked to lend a hand to this family-owned company
aiming to go public. ENVIPRO made an IPO to the second section of theTokyo Stock Exchange in 2013 and succeeded in changing thedesignation to the first section in 2018. During that time, I served for six
years as an outside director, and the next three years as an outside
director and a member of the Audit and Supervisory Committee. This is
my tenth year with ENVIPRO.
● What are the major features of our corporate governance?
Of the 11 ENVIPRO directors, three are outside directors and anotherthree are outside directors and members of the Audit and Supervisory
Committee. This high ratio of outside directors in a family-owned
company is something I have never heard of elsewhere. It is great that
ENVIPRO, based on the personality of the President, has earned thetrust of people outside the company. Another important feature is thatthe history and experiences of the IPO and the designation change to the
TSE first section have made ENVIPRO a highly transparent group ofcompanies, satisfying most provisions of corporate governance codes.
● We see you attending some company meetings besides the board

meetings and the Management Committee meetings. From whatstandpoint are you taking part in those meetings?
Any member of the Audit and Supervisory Committee is entitled toparticipate in any meeting of the Group as an observer when it is deemed
important. I participate voluntarily because I want to learn more about
the front line, out of my belief that what takes place at the front line does
count. Among the four sub-committees of the Internal Control
Committee, I think theEnvironmental Safety Promotion
Committee is particularly
important, because it deals with
our lifeline theme that cuts acrossthe entire Group. I am very
interested in what measures aretaken. Also, I think it’s importantfor me to attend such meetings
because I can get to know the
middle management people better.
Director Ide

Sustainability Report 202033

Contents / Editorial policy

Top Message

Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Business foundation / Growth foundation

Global Resource Circulation Business

Human resources development and realizing diverse working styles■ Recruiting of new graduates introduced
The ENVIPRO Group began recruiting new graduates, with theview that securing diverse human resources is important forcorporate value enhancement over the medium to long term
and that the company needs to reinforce its business foundation
by fostering future leaders on its own. The recruiting activity iseffective not only for securing the human resources for the future of
the Group, but also is helpful for the Group’s businesses to bebetter understood by a wider spectrum of audience. In fiscal
2019, we were able to issue preliminary job offers to three
students for formal joining in April 2021. In the course of therecruiting activity, many students showed a strong interest in
keywords such as "environment,""sustainability," "SDGs," and "social contribution." The statedmission of our Group, "Contribute to create a sustainable society,"
was received with strong support and empathy.
While making necessary improvements in the recruitment activity,
we plan to recruit new graduates again for joining in April 2022.

■ Holding Business Schools
We have been running the in-house business school which is aimed at
improving the skills and expertise that employees need to carry out
their work, and is operated as a series of training lessons andseminars. In fiscal 2019, we introduced a new format with a theme
set for every lesson so that we can widely invite employees toattend the lesson of their interest. The idea was to attain better training
outcomes by encouraging voluntary participation and to pinpoint andenhance the skills required of the individual employees.
We will continue to work on building effective training programs,
including the introduction of web-based training courses, in order todevelop human resources in a systematic manner.
●Examples of fiscal 2019 themes
・Problem solving through logical thinking

・Management theory and coaching for human resource development
・Understanding the regulatory regime on appropriate treatment ofwaste and responsibility of corporations
・Building an IoT-based Smart Factory and important tips for it■ Building personnel evaluation system
We operate a personnel evaluation system for employees. We
consider it has an impact on employees' motivation and is also
very important from an aspect of human resource development.
We will continue to work toward optimization of the system.

● Characteristics of the Group's personnel evaluation system
・Transition from behavioral assessment to a system thatemphasizes the performance of the employee

・ Makes it easier for the assessed to know "what evaluation can beobtained by doing what"
・Makes it easier for assessors to know "what performance leads towhat evaluation," and clearly tells their roles, including aspects
such as objective planning and process management■ COVID-19 countermeasures and realizing diverse work styles
In response to the expansion the COVID-19 infection, we
reevaluated the conventional working style and schemes with theaim of reducing the risk of infection and realizing
opportunities such as enhancing our resilience. In fiscal 2019 we
took measures such as introducing telecommuting, making a trial of
flextime system with eventual formal launch in mind, switching frompersonal seals to electronic stamp for the internal application
procedures and replacing the contracts both for internal and withoutside parties by Cloudsign.
Even after the pandemic is over, we will continue to work on
constructing new schemes with the aim of achieving higher
operational efficiency, improving the working environment, andoffering more diverse working styles.

Sustainability Report 202034

Contents / Editorial policy

Top Message

Company profile

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Other Businesses

Environment

SocietyBusiness foundation / Growth foundation

Challenge to contribute to creation of a sustainable society■ Fostering corporate culture

We believe that establishing the business objectives and values as acorporate culture and matching them with the daily businessactivities is the best governance and is an essential step toward thesustainable enhancement of corporate value. In order to foster
corporate culture, we distribute books of a copy of the management
plan to our employees, setting forth clearly our corporate
philosophy, values, and code of conduct. We aim to build afoundation for long-term, sustainable growth by utilizing themanagement plan in our business activities, instilling our corporate
philosophy throughout the organization, and fostering our corporate
culture.

■ Response to COVID-19 disaster

The COVID-19 disaster has caused a considerable slowdown insocio-economic activities and even changed our working
environment. Although the business environment is in a difficult
situation, we are taking steps toward change, because we see thiscircumstance as an opportunity to make a significant transformation.

■An example of new business area
● Research on chemical recycling of waste plastics
We are conducting research on the recycling business of dirty waste
plastics, which would realize chemical recycling by oiling waste
plastics and recovering them to crude oil, which is the raw material ofplastics.

● Basic policy to counter the COVID-19 crisis

Cash is king (short-term perspective approach)

We will conduct thorough cash management in all sales,
administrative, and production divisions

・Tighten control over personnel expenses and expenses forbusiness operations
・Review unprofitable businesses and business formats
・Strengthen the occupational safety system to prevent cash
outflow due to accidents or occupational injuries

Outline of the contemplated business model

Restructuring of work (medium-term perspective approach)Take the COVID-19 disaster as a good opportunity to conduct a
fundamental review of the way we work and make the company“transformation” dramatically・Implement remote work, web meetings, and flextime systems
・Conduct research on remote management of facilities possibilities
using IoT and robots
・Change from a membership-based approach to a job-based
approach and explore better evaluation system

Generated Exhaustgas
gas oilWaste
plastic, etc.

Waste plastics
Procurement
to Transport

Pre-treatment

Steam

Reaffirming the purpose (fundamental and long-term perspective approach)・Help realize a circular economy as a manufacturer of recycled
raw materials
・Improve the efficiency of resource collection by strengthening theplatformer role through combination of resource circulation withdigitalization
・Achieve 100% recycling by establishing recycling systems bymaking full use of chemical technologies■ Enhance corporate value by expanding businesses■ Growth investment ■ Actual corporate value

While sustainably "deepening" the competitiveness and profitabilityof existing businesses, we will implement growth investments as we"explore" new business domains and technical know-how

New

s

astic

te pl

Was

Waste

es

ness

busi

tion ashincinera

Lithium-ion

batteries

Existing Businesses: Resource Circulation, Global Resource Circulation,
Used-car-related, Environmental Management
Consulting, Welfare Service for Persons with Disabilities

2020

Fluidized bed
incinerator

Oiling(oil substitution
materials)

Oil refinery
facilities

Air

Pyrolysis gasification/oiling system(Lab testing has begun in December 2020)

To become a company that is strongly needed by the world to createa sustainable society

Synergy between group companies

The ENVIPRO Group developed a “Sustainability Strategy” in fiscal
2018, as a growth strategy to realize the sustainable development ofsociety and our group concurrently, and we have been promoting ourbusinesses.
Until we were listed on the Second Section of the Tokyo Stock
Exchange in September 2013, we prioritized the establishment of ourbusiness foundations, and after being listed, we planted a variety ofseeds for future growth with the objective of promoting thediversification of our businesses. Later, we reviewed the businessareas we had expanded, and decided to concentrate our investment
and management resources mainly on our resource circulation
business. Based on this decision, we will further promote the new
businesses that we have already launched and accelerate investments
in new growth fields, and we will engage ourselves in thedevelopment of a sustainable society as a company which is relied
upon by our stakeholders.

Corporate value

Business foundation / Growth foundation

Global Resource Circulation Business

Joint project■Profit distribution

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

Profit distribution
Investment in growth fields

30%

Research and development

10%

Return to shareholders

20-30%

Internal reserves30-40%

2030

Until a business is stabilized, the increase in corporate value will slow down because it cannot matchthe initial investment. The brown areas indicate a negative balance caused by this condition.

Sustainability Report 202035

Contact for inquiries

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