S USTAINABILITYR EPORT
GOOD HOLDINGS GROUPSUSTAINABILITY REPORTFiscal Year2016 Topics

20th Environmental Communication Awards

2017

GOOD HOLDINGS Group CSR
Report 2016 received an
excellence award in theenvironmental report section of
the 20th Environmental
Communication Awards hosted by the Ministry of the Environment
and the Global Environmental Forum.

Kankyo Hitozukuri Kigyo Awards excellence award
Received excellence award in thelarge company category of the
Kankyo Hitozukuri Kigyo Awards
hosted by the Ministry of theEnvironment and EcoLeaD.

Senior Business Contest 2016 excellence award
Received excellence award in
the Senior Business Contest
2016 hosted by Senior Navi andsponsored by the Ministry of
Health, Labour and Welfare.

Reception of JICA Induction Course
Japan International Cooperation
Agency Kansai International
Center (JICA Kansai) gives
induction courses for municipal
employees on waste issues in
Asian countries. We accepted
trainees in August, November and February in fiscal 2016.

FY 2016 Kodomo Nogyo Juku
(Children’s Agricultural School)
1st event: June 4th (Saturday)
Opening ceremony / planted corn seedlings /rice planting / onion harvesting

January:
Tokyo office opened
Opened Tokyo branch office in
Chiyoda-ku, Tokyo

Sailing team participatedin Sailing World Championship
June 17th to 25th, 2016, our sailing team (Hirata/Tanabe)
participated in the Snipe Class Western Hemisphere & Orient
Championship held in Cabo Frio, Brazil.

Outstanding Player Award
In February 2017, our sailing team
(Hirata/Tanabe) in the Snipe Class
Western Hemisphere & Orient
Championship received theOutstanding Player Award from the Hyogo Sports Association.

Opend the recruitment
section on the homepage

TV Program Kirari Keizai(Economy Program)released an interview withGroup President
Akazawa.
History of Award winning
FY 2015

19th Environmental Communication Awards
Environmental Report Section, excellence award
2015 Award for Companies Promoting Experience-based Learning
Activities for YouthSME section, encouragement prize

FY 2014

Kankyo Hitozukuri Kigyo Awards, encouragement prize
18th Environmental Communication Awards environmental reportsection, excellence award

FY 201317th Environmental Communication Awards environmental reportsection, encouragement prize

FY 2012

Nishinomiya Chamber of Commerce and Industry 70th
Anniversary: Special Award for Environmental Management
CSR2 Project, compliance section, Ministry of the Environment
Industrial Waste Section, chief prize
16th Environmental Communication Awards environmental reportsection, encouragement prize

FY 2011

Nishinomiya Applied Prize
15th Environmental Report and Sustainability Report Awards
sustainability report section, excellence award

2nd event: July 30th (Saturday)
Paddy field discovering / green pepper harvesting /corn harvesting / river animal spotting
3rd event: September 10th (Saturday)
Rice harvesting / vegetable harvesting /teamwork

FY 2010

CO2 Minus Project daily life section, special award

4th event: October 29th (Saturday)

FY 2009

6th Eco-Products Awards eco-service section, Judging Committee
Chairman’s Special Award (encouragement prize)
13th Environmental Report and Sustainability Report Awards
sustainability report section, excellence award
13th Environmental Report and Sustainability Report Awards
environmental report section, excellence award

Sweet potato harvesting / outdoor cooking
5th event: November 26th (Saturday)
Japanese white radish harvesting / craftwork /shimenawa handcrafting / closing ceremony

GOOD HOLDINGS Corporation

Corporate Message

Grasp, Respond, Surpass
Creating GOOD every day.
Creating GOOD little by little.
No matter what job it is.
No matter where it is. Beginning or ending.
We would like to believe,
Even a little,
It advances people, the community and society.
Grasp the issues from our unique point of view.
Respond in our own unique way.
Surpass where we are now.
Good for the seller
The business grows sustainably.

Action guidelines
Good for the customer
The business provides customers withfair and profitable services.

Good for societyManagement Concept/Mission“Goho-Yoshi”

The business solves some ofsociety’s problems.

(good for all five sides)

1

Good for the employee

Good for future generations

The business backs up the workers’
well-being and growth.

The business passes on better values tofuture generations.

1
We work with pride and asense of responsibility.

2
We balance selfinitiative withcooperation.

3
We tackle the work.

4
We adapt to any circumstance.
Survival of the fittest is not thesame as the law of the jungle.

5
We secure appropriate
profits.

We take the job seriously withthe awareness that we are paidfor our services and proud that
we repay customers withsatisfactory results.

Self-initiative means an
individual’s attitude to think
about what has to be done
now and to put that into
practice. Cooperation means
to think about others andwork with them. We should
balance both of these.

As we seriously tackle thework, we will keep onchallenging new themes
from the perspective thatthe work is interesting.

We should be sensitive tochange, free from thesuccesses, failures andconventions of the past,
continuing our efforts tocope with difficult
conditions.

We realize that generating
appropriate profits is
indispensable for meeting the
expectations of those forwhom we are responsible
and to build a solid businessbase for future prosperity.

GOOD HOLDINGS GROUP SUSTAINABILITY REPORT 20172

GOOD HOLDINGS Group’s Value Creation

An Ongoing Evolution of Our Business
Tackling Social Problems Using the Keywords
Grasp, Respond, Surpass
GOOD HOLDINGS began as a waste disposal company with the goal of helping to
Declining birthrate / aging society
resolve the waste problems that Japan faced during the period of rapid
economic growth.
Based on our corporate keywords — grasp, respond, surpass — we work
to grasp social and community issues, respond to customers by turning thesesolutions into businesses, and surpass customer expectations, while continually
growing as a company. Over the years, we created a number of businesses in
response to problems, including recycling, reusing and cleaning. Moving forward,
we will pursue new forms of value creation by finding solutions to the social
Environmental
problems that will appear, such as those involving the environment, energy andissuesresource conservation, the declining birthrate, the aging of society and recycling.

Okatazuke(tidying up and cleaning service)

e
u
l
Va

n
o
i
t
i
s
o
p
Pro
s
lem

ob
l pr

a
oci
s
to es
s
n
s
utio sineslosu
de our bivoPr ughothr

Reuse
Cleaning

Recycling

Energy conservation /resource conservation

Waste disposal

Our approach to business

Grasp, Respond, Surpass

Recycling issues

Value We Create
Annual amount of industrial
waste handled

3

Grasp

Be the first in the field to grasp social problems and community issues

Respond

Building trust and reliance by responding to customers’ issues, then commercializing the solution

Surpass

Always surpass customer expectations by validating theories and by using Group company synergies

71,343 t
In fiscal 2016, we handled 71,343 tonnes ofindustrial waste, ranging from sludge and plant
and animal residue to acid, alkali and beverage
products as well as plastic waste.

Recycling rate
More
than

Sale of articles to be reused

94.5% 190 containers

We have maintained a 90%+ recycling rate
for the industrial waste that we collect thanks
to our drying, separating, and shredding
processes, as well as recycling at
our affiliates.

In fiscal 2016, we exported 190 container
loads filled with lightly used articles tooverseas destinations from Japan. In turn,these articles fulfill the local need for reusable
goods, mainly in Southeast Asia.

GOOD HOLDINGS GROUP SUSTAINABILITY REPORT 20174

History▼

2014
Established the Kanto business office(Adachi-ku, Tokyo)
Completed biomass boiler▼

History of our diversified businesses

2007
Completed drying plant
Started Biomass Fuel business2010
Started Grease Trap
Cleaning service business▼2011
Started Okatazuke
service business2014
Started the“swell” business▼ ▼▼Cleaning▼

2008
Completed Reverse Management Center
Started beverage products
recycling business

▼

Reuse

2013
Started Overseas
Reuse businessOkatazuke(tidying up and cleaning service)

▼

▼

1962
Established Daikyo Kogyosho Inc. (presently,
Daikyo Corporation)
Started collection of household andindustrial waste in Itami City

2010
▼

1993
Expanded facilities at the
Recycling Center
1999
Established collaboration
system with other companies

1974
Established Daiei Service Co., Ltd (presently, REVACS
Corporation)
Started Industrial Waste Disposal business

2000

2017
Opened the Tokyo office (Chiyoda-ku, Tokyo)

▼

1990
▼

▼

1960
The late Noboru Akazawa established Daiei
Eisei Inc. (presently, Daiei Corporation)
Started collection of household andindustrial waste in Nishinomiya City

1980

2006
Renovated shredding facility
Introduced collection trucks
equipped with scales

▼

▼

1970
▼

1960

▼

▼

▼

Recycling

1984
Relocated Recycling Center to
Naruohama, Nishinomiya City,
Hyogo Prefecture

Waste disposal

2016
Spun off the Okatazuke service and Reuse
businesses; established Relief Corporation
Spun off Grease Trap Cleaning service andestablished Daikyo Clean Corporation
Changed group name to GOOD
HOLDINGS Group
Relocated Kanto business office to Misato City,
Saitama Prefecture▼

Since beginning in the business of collecting household and industrial waste in1960, GOOD HOLDINGS developed businesses focused on industrial waste
disposal, including starting up an industrial waste disposal business in 1974.
Since 2000, we have expanded our business portfolio to include solutions tosocial problems beyond the field of industrial waste disposal, including biomass
fuel and the sale of lightly used articles overseas.

GOOD HOLDINGS Group Business Segments

SC

The GOOD HOLDINGS Group comprises five operating companies engaged in industrial waste recycling, reuse of lightly used articles,
tidying up homes, cleaning a range of buildings and businesses, and collecting household and industrial waste.
We manage the entire Group by dividing the six businesses into three segments.

Smart Clean
segment

For details, see page 11

WT

Waste
Treatment
segment

For details, see page 12

3R

3R

segment

For details, see page 10

Industrial Waste Recycling business

3R segment

Smart Clean (SC) segment

Recycling industrial waste and disused articles■ REVACS Corporation■ Relief Corporation (Reuse business)

3R SC■ Daikyo Clean Corporation■ Relief Corporation (Okatazuke service)

Waste Treatment (WT) segment■ Daikyo Corporation

WT■ Daiei Corporation* “swell” is a coined word for safe and well, and refers to cleaning services specifically for factories and the infrastructure.

5

Cleaning service for factories and theinfrastructure (the “swell” business)

Daikyo Clean Corporation

Grease Trap Cleaning business

Relief Corporation

Okatazuke service business

Disposal

Provision of commodities

Daikyo Corporation
Waste Collection businesses

Daiei Corporation[Factories]
Manufacturing
factories, plant
construction,
civil engineering[Commercial]
Stores andbuildings■ REVACS Corporation (“swell” business*)

GOOD HOLDINGS Group
Collection of household and industrial waste

REVACS Corporation

Tidying up around the home and cleaning various facilities

Main customers

Reuse business[Individuals][Overseas][Governments]
Municipalities,etc.
[Individuals/
Merchants]* Business domains shaded in a lighter color indicate partial coverage.

GOOD HOLDINGS GROUP SUSTAINABILITY REPORT 2017

6

Top Message

Realizing the commitment to good management
and reaching a new growth stage,
while working closely with society
Two years have passed since we transitioned to a holding company system. Where is the GOOD
HOLDINGS Group today and where will we be in the future? Below, President and Chief Executive
Officer Kenichi Akazawa, looks back on fiscal 2016 (ended March 31, 2017) and discusses therelationship between our businesses and CSR. As well, he explains our growth strategy.

Review of FY 2016

Business and CSR

Earnings results remain firm mainly in the 3R segment, and the overall targets of
the Group have been achieved

Committed to good management by creating business solutions for social
problems and by socializing businesses

The fiscal year under review was the first year under our eighthCompanies must aspire to grow their business operations, but at

the 1970s, pollution became the next major social issue, so we

the same time they cannot ignore the social aspects of theirdecided to create a business for disposing of industrial waste,

medium-term management plan, and we were able to achieve

year’s total of 1,408 million.
In the Smart Clean (SC) segment, net sales reached 631

the targets laid out for the entire Group. Although several

million yen, up 9.2% over the previous fiscal year total of 578

businesses. A company can grow as long as management can

one cause of this pollution. In recent years, we have grasped

businesses underperformed slightly compared with theirmillion yen. While net sales were strong, there were structural

involve all stakeholders and convince them that the company does

business ideas based on latent, pre-existing needs and current

forecasts, the existing businesses saw solid results, whileareas of improvement from absorbing demand from the growing

not differentiate between these two aspects of business. For thissocial issues with solutions ranging from the Okatazuke service

Group-wide net sales totaled 3,852 million yen, down slightly

market for the Okatazuke service (tidying up and cleaning

reason, CSR is considered an integral part of corporate strategy.

business to the Grease Trap Cleaning business. Our corporate(0.05%) from the previous fiscal year’s total of 3,854 million

service). This resulted in additional servicing costs, which

Management is all about commitment. It requires a proactive,

keywords — grasp, respond, surpass — perfectly embody the

yen. Ordinary income fell 87.7% year on year from 253 million

dampened earnings. Currently, we are building a businesshands-on approach rather than a passive one. In this regard, I

GOOD HOLDINGS Group’s corporate stance of firmly grasping

yen to 31 million yen, which was attributed to impairment

foundation and making further changes to our operations aimed

believe that CSR represents a commitment to good management.

social problems, responding to these problems with businesslosses and reserves set aside due to changes in ourat the next stage.

accounting policy.

The Grease Trap Cleaning service business has entered a

The initial starting point of any business is meeting

solutions, and continually surpassing expectations bycustomer needs or addressing social problems. The commercial

commercializing solutions with the hope of improving the

Next, I would like to look back on the earnings ofsolid growth trajectory providing a service that can generate

activities that resolve these needs or problems form the heart ofpresent situation, if even by one percent.

individual segments. First, the 3R segment saw net sales of

profits together with contract renewals. In the Kanto region,

the business. This is why companies that can turn solutions for

1,849 million yen, down 1,864 million, or 0.8%, from thewhere we set up our business office last year, customers havesocial problems into businesses will be accepted by society andbusinesses cannot be created without a good society, andprevious fiscal year, which was better than the initial forecast.

been extremely happy with our total support solutions, not only

will grow as an integral part of society. In addition, newanother management scholar, the late Peter Drucker, famously

The Industrial Waste Recycling business continued to see

for grease trap Cleaning, but for the sanitation management ofbusinesses will be born offering solutions to social problems

said, “The enterprise exists on sufferance and exists only

steady results. While the Reuse business faced some difficulties

entire buildings and other services as well. Currently, we arethat emerge with the changing times. This represents theas long as society and economy believe that it does a job and ain the first half, it recovered in the second half, establishing acommitting additional management resources to respond toprocess of creating business solutions for social problems andnecessary, a useful, and a productive one.” These words

solid foothold for growth in the next fiscal year.

growing demand in an effort to further build up this business.

for socializing businesses, which has been an integral part ofdemonstrate that a company has a responsibility to makeour history and where the GOOD HOLDINGS Group excels.

society a better place, and that society and business are

In the Waste Treatment (WT) segment, which includes the

For the time being, as the next step, we plan to grow theDuring the 1960s, Japan saw rising amounts of garbage

collection of household and industrial waste, we were able toOkatazuke service business, while focusing on the Grease Trap

increase contracts with private-sector companies despite a

Cleaning service business and the “swell” business, one of ourcaused by population increases associated with a period ofdrop in orders from the public sector. Nevertheless, net sales

new Group businesses.

rapid economic growth. The GOOD HOLDINGS Group began bytotaled 1,364 million yen, down 3.1% from the previous fiscal

7

President and Chief Executive Officer
GOOD Holdings Corporation

Management scholar Philip Kotler talked about how good

indivisible and cannot be separated.

collecting waste with the hope of resolving this issue. Later, in

GOOD HOLDINGS GROUP SUSTAINABILITY REPORT 20178

Business Segment

Messages from Group Companies

REVACS Corporation

3R

3R segment

3R

To create a recycling-oriented society throughrecycling and reusing.

Delivering new value for the goods and systems underpinning the world today

Eiji Yamamoto President and Representative Director
The main business lines of REVACS include recycling industrial waste and cleaning services focused on
factories and the infrastructure. Each of these businesses is indispensable to the world we live in, but tofurther satisfy stakeholders, I believe REVACS must deliver new unique value that sets us apart fromcompetitors. We are now making capital investments, developing new human resources and making
improvements to our work environment to become a group of professionals known for unrivaled
technologies.
We are also firmly committed to legal compliance and information disclosure to deliver peace ofmind and earn the trust of all our stakeholders.

Relief Corporation

Providing services that address customers’ needs

Masato Akazawa President and Representative Director
Relief Corporation’s Okatazuke service business collects disused articles from customers, either by tidying
up homes or from estates, and the Overseas Reuse business resells the lightly used household articles
overseas that are collected by the Okatazuke service.
Recognizing the growth potential of this service in Japan’s aging society, we plan to increase thenumber of franchise outlets for the Okatazuke service business.
Also, the Overseas Reuse business is expanding from estate and disused articles to accepting otherarticles not being used or trade-in goods from merchandisers.
All of us at Relief Corporation understand that our businesses provide important services that
address the needs of customers, and every one of us is committed to providing trustworthy services thatgive customers peace of mind.

Daikyo Clean Corporation

Aspiring to be a company essential to society that underpins community
and regional businesses

Kazuhisa Morishita President and Representative Director

Daikyo Clean Corporation mainly provides cleaning services for grease traps and drain pipes atrestaurants, hospitals and mixed-use facilities. We focus on responsible disposal that emphasizes
thorough hygiene management and compliance. At the same time, we also provide customized services
tailored to the needs of individual customers.
Our Kanto branch office, opened in fiscal 2015, has shown steady growth after winning over new
customers.
Looking ahead, all of our employees will tackle new challenges with a sense of responsibility andambition to meet and surpass the needs and expectations of many more customers.

Daikyo Corporation

Satisfying customer expectations and contributing to the community
provide a sense of fulfillment to our employees

An Industrial Waste Disposal service that is essential for society
Expanding the Overseas Reuse Service to meet the new needs of today’s society.
3R is from the initial letters of three environmental
keywords: reduce (waste reduction), reuse (reuse ofwaste) and recycle (waste recycling). Companies in
our Group have the performance and improvements
needed for an effective infrastructure, such as
REVACS (industrial waste recycling) and Relief(Overseas Reuse service), to create a recyclingoriented society to benefit the earth.

Kazuhisa Morishita President and Representative Director
Daikyo Corporation has been collecting household and industrial waste, mainly in Itami City, since 1962.
From that time, we have dedicated ourselves to making the environment more comfortable for local
residents, disposing of waste responsibly and helping to reduce waste and use it more efficiently.In fiscal
2016, all our businesses performed strongly, and net sales increased compared with the previous fiscal
year.We plan to launch a new business in the second half of fiscal 2017 (ending March 31, 2018) with thehope of achieving even greater growth.
Going forward, with integrity and cleanliness as our guiding principles, we will work together withcustomers and communities as a company that is always trusted.

Daiei Corporation

Industrial waste recycling
waste beverage
product recycling at

100%

Overseas Reuse service
exporting to

10

over

countries

Japan’s best track record for waste
beverage product disposal

Realized one-stop service fromrecycling to selling■ We reached a 100% recycling rate for containers and liquids by■ We provide all kinds of good because of our worldwide sales regions.

transshipment as well as storage, shredding and drying.
■ Conforms with the Food Recycling Law■ Service regions: Kanto, Chubu, Kansai and Shikoku■ Doing everything from recycling to selling makes us more efficient. That

Contributing to the building of a recycling-oriented society and preserving theenvironment of communities through our business activities

Haruaki Terasaki President and Representative Director
Daiei Corporation has been collecting household and industrial waste, mainly in Nishinomiya City, for morethan half a century.
Until now, our workforce mostly consisted of highly experienced long-time employees, but recently wehave seen an influx of young people who are now broadly involved in our operations. I hope to make Daiei evenstronger in the future by developing a workplace that fully capitalizes on the individuality of every employee.
Through our waste collection business, we aim to become a company truly trusted and needed by thecommunity, one that helps to make the town cleaner and that helps provide a better living environment.

9

is how we can ship 1 to 1.5 container loads every day.
■ Not only domestically, we also provide individualized consultation services

for overseas buyers. Our main export area has expanded to 11 countries.
From the beginning year (2013), the volume of container shipments has
increased by eight times.

GOOD HOLDINGS GROUP SUSTAINABILITY REPORT 201710

BusinessSegment
Segment
business

SC

Business Segment

Smart Clean segment
Expanding our service from cleaning and a janitorial service tomore new fields

Cleaning service, which comes from the viewpoint of,“It would be great if you could provide this kind of service.”--Provides a wide range of cleaning services, such as increasing efficiency of factories, managing
hygiene in kitchens and a memento disposal service-Cleaning and tidying up are essential to make ourdaily life clean and comfortable. Our Group supports
citizens for a comfortable living and working
environment in every aspect of life through our longexperience and professional skills. REVACS
Corporation provides the “swell” service. Daikyo
Clean Corporation provides Grease Trap Cleaning
service. Relief Corporation provides the Okatazuke
service. These services help to keep restaurants andfactories clean and environmentally sustainable.

“swell” service“swell” service
Suction power

3.5

times morethan normal

Grease trap cleaning service
Annual service
performance

8,000

cases

Okatazuke service

Grease Trap Cleaning service

Customersatisfaction rate

95 +
%

SC

WT

Waste Treatment segment
Waste collection/transportation for the local infrastructure,families and businesses

The original spirit of the GOOD HOLDINGS Group has never changed
Grasping what local residents demand from services.

Kansai

Kanto

Osaka, Kyoto, Hyogo,
Shiga, Naraand Wakayama

Metropolitan Tokyo,
Saitama, Kanagawa,Chiba, Tochigi,
Gunma and Ibaraki

Miyagi

Quantity of waste disposal

We began business as a household waste collection
company in Nishinomiya from 1960. As we grew, we
also developed waste measurement systems andoutflow prevention systems and promoted them alongwith household and general business waste collection.
Collection services are operated by Daiei (Nishinomiya
City) and Daikyo (Itami City). As well, we collect andtransport industrial waste in the Kansai area. Ourservices reach a range of families, governments andcorporates. We always hope to contribute to a higher
quality of life for our customers.

Okatazuke service
Service regions

WT

Nishinomiya

about

Itami

Quantityofwaste
handled

Nishinomiya
Itami

about

40,00020,000t

Daiei Corporation –Daikyo Corporation –Nishinomiya

ItamiHouseholds

22,540 t



13,790 t

General businesses16,320 t

5,190 tIndustrial waste1,170 t2,000 t43

Number of truckst23

OkinawaTokaiMie, Fukui, Gifu, Aichi, Nagano,
Yamanashi and Shizuoka

The truck has an air flow of 160 m /minute, one of the highest in Japan.
By using this truck, we made suction
more efficient, reaching the target of highspeed with low cost.
3

Recovered sludge is recycled in thetreatment facility at REVACS or our affiliates.
We have a truck with a dedicated highpressure washer to provide a regular drainpipe and plumbing cleaning service.

Customer satisfaction for Relief Corporation has been over 95%.
To handle more domestic customers, we expanded our service
area and started a franchise business from 2015. We now haveeight locations around Kansai and Kanto, and are welcoming
more franchisees to join us.

Household waste collection and transportation
Number of consignment contracts(households)

53,000

34,000

General business waste collection and transportation
Number of consignment contracts(companies)

2,0001,100Figures for March 201711

GOOD HOLDINGS GROUP SUSTAINABILITY REPORT 201712