TRE HOLDINGS CORPORATION Integrated report2022

TRE HOLDINGS CORPORATION Integrated report 2022
Publisher TRE HOLDINGS CORPORATION
15th floor of Tokyo Sankei Bldg., 1-7-2 Otemachi, Chiyoda-ku, Tokyo

Website202212https://tre-hd.co.jp/en

Integrated report2022

Introduction 1 The emerging environmental crisis

Is the Earthsustainable?
The issues facing the global environment
become more serious and more apparent.

The limits a society of mass-production/consumption/ disposal
Mankind is now beginning to face the limits of the social model of mass-production/
consumption/disposal that supported development in the 20th century.
One issue is the amount of fossil fuel and natural resources consumed, which is
expected to increase greatly as economic development and human population growthcontinue, prompting concerns about their eventual depletion. In specific terms, demand
for the world’s natural resources has doubled in the approximately 40 years since the1980s, and it is said that we will need 2.8 Earths’ worth of natural resources to maintaincurrent consumer lifestyles by 2030.*1 Furthermore, the amount of waste generated
worldwide is expected to increase by 70% from the current figure, and controlling or
reducing waste generation is becoming a major challenge.*2 Issues involving waste plastic
are worsening as well. International society has been paying close attention recently tothe problem of marine plastics, where plastic waste not treated properly flows into oceans
and negatively affects marine ecosystems.
To overcome such global environmental problems and create a sustainable worldand society, it is essential that we switch to an economic system with a lower impact on
the environment.
*1 S
 ource: WWF “Living Planet Report,” Ministry of the Environment “Annual Report on the Environment, the Sound
Material-Cycle Society and Biodiversity in Japan 2016”*2 Source: World Bank, “What a Waste 2.0: A Global Snapshot of Solid Waste Management to 2050”

The effects of intensifying climate change
Since the Industrial Revolution, humanity has consumed fossil fuels such as coal and oil forenergy to bring about prosperous lifestyles. At the same time, however, the consumption oflarge quantities of fossil fuels led to an increase in atmospheric concentrations of greenhousegases, which is causing progressive global warming. The average global temperature(2011–2020) was 1.09°C higher than in pre-industrial times, and it is predicted to continue
rising at least until the middle of this century. If there is no reduction in the amount ofgreenhouse gas emitted in the next new decades, the rise in average global temperature isestimated to exceed 1.5°C to 2.0°C in the 21st century. Even worse, if we pursue a scenario
where greenhouse gas emissions are extremely high, it is predicted that the average global
temperature will rise to a maximum of 5.7°C by the end of the 21st century.*
These climate change issues worsen every year, affecting the amount ofprecipitation and changes in sea level in nature, impacting ecosystems, causing floods,
droughts, deforestation and other natural disasters, and they also affect human society by
causing food and water shortages while natural disasters are damaging social infrastructure.
*Source: Intergovernmental Panel on Climate Change (IPCC) “Sixth Assessment Report (AR6)”01

TRE HOLDINGS CORPORATION Integrated report 2022

TRE HOLDINGS CORPORATION Integrated report 2022

02

Introduction 2 Our reason for existing

Creating
environmental value
TRE HOLDINGS CORPORATION faces challenges as aComprehensive environmental management company.

Helping create an efficient recycling society
To create a sustainable world and society, it is essential that we make the switch to an
economic system with a lower impact on the environment as soon as possible. In otherwords, we now need to shift from a linear economy where we used massive quantities
of natural resources and fossil fuels and mass-produced/consumed/disposed ofindustrial products, to a circular economy where used industrial products which under
the conventional economic system were considered to be “waste” are instead treated as“resources” and are reused and recycled in order to circulate resources.
TRE HOLDINGS was established in 2021 as a result of the business integration
between TAKEEI CORPORATION and REVER HOLDINGS CORPORATION, two leading waste
treatment and recycling businesses in Japan, with the mission of helping to create anefficient recycling society. As the foremost comprehensive environmental managementcompany in Japan, TRE HOLDINGS will contribute to the creation of an efficient recycling
society through its waste recycling businesses and its resource recycling business forunused resources while strengthening cooperation with the other industries that drive
Japan’s manufacturing and with governments and local authorities.

Helping create a carbon-neutral society
The Paris Agreement, an international framework for climate change issues from 2020
onwards, sets a goal of keeping the rise in average global temperature to less than 2°C
compared to pre-Industrial Revolution times while continuing to make every effort to keep it
below 1.5°C. Based on that framework, in October 2020, Japan declared its goal of becoming
carbon-neutral by 2050. To meet that goal, structural changes in the fields of energy andindustry, and the creation of innovation through bold investments are under way.
In these circumstances, we at TRE HOLDINGS have set contributing to thecreation of a carbon-neutral society as our mission as a comprehensive environmental
management company, and we are working to reduce greenhouse gas emissions throughour businesses. Through our waste treatment and recycling business, the TRE Groupaims to reduce greenhouse gas emissions across the entire life cycle of products, frommanufacturing until disposal. Additionally, we run a woody biomass power generation
business with six locations in Japan, so we will also contribute to the creation of a carbonneutral society through the stable supply of renewable energy.

03

TRE HOLDINGS CORPORATION Integrated report 2022

TRE HOLDINGS CORPORATION Integrated report 202204

Editorial policy

Contents

This is the first ever integrated report fromTRE HOLDINGS CORPORATION.
On October 1, 2021, TAKEEI CORPORATION and REVERHOLDINGS CORPORATION established TRE HOLDINGSCORPORATION as a joint holding company andintegrated their businesses. This aim of the businessintegration is to allow the two companies, who sharethe same commitment to the conservation of the global
environment, to carry out the large-scale investments andtechnological development needed to address pressing
issues such as reducing CO2 emissions and recycling
waste plastic, and also allow them to leverage eachother’s management resources in order to contribute to
the creation of an efficient recycling society as the leading
corporate group in Japan’s environmental industry.
This integrated report introduces the corporate
image of TRE HOLDINGS as a comprehensive
environmental management company and explains its
medium- to long-term vision and strategy.

Scope of report
Organizations covered
TRE HOLDINGS CORPORATION and consolidated subsidiaries(including some affiliates accounted for by the equity method)

Period covered

Introduction 1 The emerging environmental crisis ----------------------- 01
Introduction 2 Our reason for existing ------------------------------------------- 03
Editorial policy/Contents ----------------------------------------------------------------- 05
Message from the CEO --------------------------------------------------------------------- 07
Message from the COO --------------------------------------------------------------------- 09

Part 1The background of TRE HOLDINGS CORPORATION ------------------------ 14
Principles and beliefs ---------------------------------------------------------------------- 15
History ---------------------------------------------------------------------------------------------- 17
Value creation model ----------------------------------------------------------------------- 19
Management capital ------------------------------------------------------------------------ 21
Overview of businesses by segment ----------------------------------------------- 23
Overall business model ------------------------------------------------------------------- 25

Corporate Profile
TRE HOLDINGS CORPORATION
Comprehensive Environmental Management Company

October 1, 2021 to March 31, 2022
(including some information from outside the coverage period)

Guidelines referenced• The International Financial Reporting Standards (IFRS) Foundation“International Integrated Reporting Framework”• Japan’s Ministry of Economy, Trade and Industry, “Guidance forIntegrated Corporate Disclosure and Company-Investor Dialogue
for Collaborative Value Creation”• Global Reporting Initiative“GRI Sustainability Reporting Standards”• Task Force on Climate-Related Financial Disclosures (TCFD)
Final Report• Japan’s Ministry of the Environment, Ministry of Economy, Tradeand Industry, “Basic Guidelines on Accounting for Greenhouse Gas
Emissions Throughout the Supply Chain (ver. 2.4)”

TAKEEI CORPORATIONPart 2

Vision and Strategy
Becoming a Comprehensive Environmental Management
Company that Leads the Environmental Industry

Part 3Business Strategy by Segment

The TRE Group’s information disclosure
TRE HOLDINGS CORPORATION

Introduction

Creating Environmental Value through Business

REVER HOLDINGS CORPORATIONThe Group’s long-term vision ---------------------------------------------------------- 28
Material issues --------------------------------------------------------------------------------- 29
Medium-term business plan: Results for FY03/2022 -------------------- 31
Growth strategy -------------------------------------------------------------------------------- 33
Response to climate change(information disclosure based on TCFD recommendations) --------- 37

Growth strategy background ----------------------------------------------------------- 40
Waste Treatment and Recycling Business /Resource Recycling BusinessBusiness model -------------------------------------------------------------------------------- 41
Case study 1 Recycling unused resources ------------------------------------- 43
Case study 2 Environment conservation through metal recycling ---- 45
Case study 3 Environmental contributions through RPF --------------- 47
2022 highlights --------------------------------------------------------------------------------- 49
Renewable Energy BusinessBusiness model -------------------------------------------------------------------------------- 51
Case study
Hanamaki woody biomass power generation project ------------------- 53
2022 highlights --------------------------------------------------------------------------------- 56

Websitehttps://tre-hd.co.jp/en/

https://www.takeei.co.jp/en/index.html

https://www.re-ver.co.jp/english/

 ther businesses (Environmental Engineering /O
Environmental Consulting)Business model -------------------------------------------------------------------------------- 57
2022 highlights --------------------------------------------------------------------------------- 58

Company guidePart 4ESG

The Business Infrastructure for Our Growth Strategy

Corporate Data
ReportIntegrated report (FY2022 onwards)

05

TRE HOLDINGS CORPORATION Integrated report 2022

CSR report (up to FY2021)

Corporate governance --------------------------------------------------------------------- 60
List of executives ------------------------------------------------------------------------------ 63
Occupational health and safety ------------------------------------------------------- 65
Create work environments that are easy to work in ---------------------- 67
Living and thriving together with the local community ------------------ 69
Disaster recovery support --------------------------------------------------------------- 71

Financial highlights (consolidated) ------------------------------------------------- 73
Non-financial highlights (consolidated) ------------------------------------------ 75
Group profile ------------------------------------------------------------------------------------- 77

Sustainability report (up to FY2021)

TRE HOLDINGS CORPORATION Integrated report 2022

06

Message from the CEO

As a comprehensive environmental management company,
our technological strengths, reputation and scale give us the platform
to pursue sustainable, stakeholder-driven growth.

Naoto Matsuoka
Chairman and CEO

Our mission to create an efficient recycling society
and carbon-neutral society
Issues such as climate change, resource exhaustion andplastic waste are dominating the social agenda like neverbefore. It is clear that our linear economy based aroundmass-production/consumption/disposal is beginning toreach its limit. There is a growing movement toward extended
producer responsibility, whereby industries that manufacture
products from natural resources also bear responsibility forthe disposal and recycling of these products. In October 2020,
the Japanese government declared its intention to becomecarbon neutral by 2050 and the Government’s Ministry of
Economy, Trade and Industry (METI) released its Circular
Economy Vision 2020, which encourages industries totransition into circular business models.
Waste management companies like ours will playa crucial role in this transition, as we already possess thetechnology and expertise to recycle waste and restore
resources to society. Now more than ever, other industries
need to work with the waste management industry to ensurethat extended producer responsibilities are met. Together
our industries can achieve a recycling-oriented, carbonneutral society.
Waste management companies, however, tend to besmaller in scale than those in other industries. Technologies
to sort and classify waste are key to building a circular
economy, but companies in our industry often lack the humanresources and investment capabilities needed to develop
such technologies. There are also issues with public trust, as
waste management companies tend to be less well known
and less financially stable, relatively speaking.
It is to address these very challenges that, in October
2021, we formed TRE HOLDINGS (a joint-holdings
corporation) by integrating TAKEEI CORPORATION and
REVER HOLDINGS CORPORATION.
The formation of TRE HOLDINGS is the next step inour mission to conserve the global environment. Although
the two companies involved in the integration specialized inwaste management, TAKEEI CORPORATION focused on waste07

TRE HOLDINGS CORPORATION Integrated Report 2022

treatment/recycling and renewable energy businesses,
while REVER HOLDINGS CORPORATION focused on resource
recycling. Despite these differing strengths, both companies
are united in their commitment to the global environment.
This integration has allowed us to supplement and share
management resources, expand our fields of business andincrease in scale—benefits which we are confident will enable
us to grow as a comprehensive environmental managementcompany. Having scaled up the businesses, we plan to workin close cooperation with other industries, consumer society,and local and national governments, as an integral piece ofthe circular economy infrastructure.

How a comprehensive environmental managementcompany can provide a platform for society’s needs
In our new role as a comprehensive environmental
management company—one that is capable of leading inenvironmental industries—we must not only fully utilize thetechnologies, expertise, human resources, facilities and othermanagement assets gained through our integration, but also
develop these assets to higher levels. As we do so, there arethree main points we should keep in mind.
The first is that we must support circular production
in other industries by further strengthening our sorting,classification and processing technologies. Extended
producer responsibility is gaining traction amongautomakers, consumer electronics manufacturers andother such companies, while major CO2 emitters such as thechemical and steel industries are constantly exploring new
ways to achieve carbon neutrality. Particularly in Europe,
there is a growing tendency for companies and governments
to incorporate data such as CO2 emissions throughout the
product life cycle and ratio of recycled materials in products
into their purchasing rules, and products that fail to meetsuch targets will miss out on sales opportunities. As aresult, many companies now focus not only on incorporating
recycled materials into their products, but also designing
products in a way that allows recyclable materials to be
more efficiently extracted after use. These companies arealso in search of new sorting, classification and processing
technologies—vital elements in expanding use of recycledmaterials. As partners to industry in the new circular
economy, TRE HOLDINGS must not only ensure that recycledmaterials fulfill quality standards and are suitable for use, butalso develop new technologies that will further increase theratio of recycling materials in products, driving down landfill
waste and CO2 emissions in the process.
The second point is that we must provide a flexible
recycling environment for manufacturers with locations
in multiple countries. In Japan, the types of waste that canbe handled and the treatment methods allowed are closely
regulated by law. Companies must also comply with theregulations of individual municipalities. These different

regulatory environments can impede the expansion of waste
management companies. Our integration, however, hasallowed us to expand our business portfolio as well as expand
the areas in which we can collect. Utilizing this advantage
to its maximum will allow us to better contribute to an
efficient recycling society and offer unique services to privatecompanies and municipalities.
The third point is that we must strengthen cooperation
within the waste management industry. Through our
integration, TRE HOLDINGS has greatly increased its
technological capabilities and expanded its areas ofcollection. However, even our current scope still falls short ofthat needed to cover a wide enough domestic and overseas
collection area and deliver the public–private infrastructureneeded for an efficient recycling society. This is why ourGroup aims to operate as a platform to proactively promote
domestic and overseas industry cooperation. We aim to bring
together other like-minded waste management companies
under our banner as a comprehensive environmental
management company, including through proactive pursuitof alliances and M&A. There are three overarching goals
we hope to pursue through such cooperation: “Integration/
Expansion,” by increasing technological scope, expanding
business fields, and expanding areas of collection, with thegoal of establishing a nation-wide network; “Specialization,”by developing waste treatment technologies and expertisein specific fields, and cooperating with industries to provide
services for both upstream and downstream processes; and“Diversification,” by expanding into the renewable energies
business by capitalizing on underused forest resources suchas offcuts from forest thinning.

Meeting new challenges together with stakeholders
The year 2050, when the world hopes to achieve carbon
neutrality, is not that far away. If we are to achieve thisgoal by 2050, the necessary infrastructure will need to
be in place by 2040 at the very latest. When taking into
account the need for R&D and proofs-of-concept, the time
for concrete action is now. TRE HOLDINGS understands theimportance of this work. Day by day, our Group employees
are tasked with the rewarding job of drawing up an image
for 2050 and moving that image toward fruition. We areproud to work with the many stakeholders in our industry,
and it thrills us to know that we are in a position to help
achieve the efficient recycling, carbon-neutral society thatthe world has set as its goal.
The creation of TRE HOLDINGS was not a goal in
itself, but rather a starting point. As we continue ourjourney toward becoming a comprehensive environmental
management company and a leader in our industry, I hope
we will touch the lives of as many people as possible.

TRE HOLDINGS CORPORATION Integrated report 2022

08

Message from the COO

Message from the COO

Our integration has already produced
performance gains and enhanced our
reputation in the market. Now we are
doubling down on four key strategies
to ensure these benefits translate
into growth.
Mitsuo Abe
President and COO

First year of integration delivers solid results
TRE HOLDINGS was established October 1, 2021, and our
first annual financial results were released in March 2022.
Looking back on our first year, I take great pride in what thecompany has achieved so far.
We exceeded all financial targets for the year ended
March 31, 2022, including for net sales and operating profit,
and were able to meet ROE and other financial indicators set
in our medium-term business plan. These financial results
are very satisfying to report, but even more importantly
we have increased our technological prowess, public trustand scale—which are all key to achieving our ultimate
environmental mission. These are invaluable first steps
on our journey toward achieving an efficient recycling,carbon-neutral society, as an integral platform for fostering
cooperation with other industries.
For evidence of this progress, look no further than thegrowing number of customers approaching us with new andspecific challenges related to waste treatment and recycling.
The seeds of many new projects are found here, including
collaborations and joint technological development withcompanies such as chemical, automotive and consumer

09

TRE HOLDINGS CORPORATION Integrated report 2022

electronics manufacturers, as well as proposals for M&As
with companies in our industry.
From the beginning, when contemplating thisintegration, our Group understood that it was the differingstrengths of the two original companies that would enable
us to become a comprehensive environmental managementcompany. The goal of the integration was not to increase
our share in the limited markets already available to us,
but rather to offer scaled-up, comprehensive solutions to amuch broader market and geographical area. The increasein new customer inquiries post-integration is evidence of how
the market is already beginning to perceive us differently.
We are not simply the sum of TAKEEI CORPORATION,
which handled construction waste and woody biomass
power generation, and REVER HOLDINGS CORPORATION,
which handled recycling for ferrous/non-ferrous scraps,
used vehicles and consumer electronics. With our newly
combined strengths, we can safely say that customers do
indeed expect more from us today.
Many subcommittees that were already formed under
the two separate companies are continuing their excellent
work in areas such as sales organization and technologicaldevelopment. This has led to many new ideas, proposals andprojects, such as collaboration with materials manufacturers
on research into recycled materials, recycling businesses
in new fields such as glass and new services for municipal
governments. Less than a year since our integration, thepossibilities for growth already abound.

Exceeding our planned business results
My mission is to help lay the groundwork that will enable
TRE HOLDINGS to become a comprehensive environmental
management company—one that is fully abreast of rapidchanges and momentum in the business environment andthat capitalizes on potential business opportunities.
To help achieve this mission, we formulated andreleased a medium-term business plan in October 2021.
Specific quantitative goals included targets of 92 billion in net
sales and 9 billion in operating profit for the year ended March
31, 2024, as well as 100 billion yen in net sales (through an
additional 10 billion from new synergies from our integration)
and an operating profit margin of 10% or greater for theyear ended March 31, 2026 (Five years after the integration).
Moreover, we established four key strategies to further
grow the strengths of the two original companies while
also creating new synergies. These strategies are pursuing
growth for recycling businesses, promoting eco-friendly
energy businesses, developing new technologies andmanaging sustainability.
The results for our first fiscal year ended March 2022
included net sales of 68,234 million yen, operating profit of
7,659 million yen, ordinary profit of 7,547 million yen andprofit attributable to owners of parent of 4,742 million yen.
Medium-term business plan forecasts established at thetime of the integration were revised upward in February
2022. Despite this, figures still exceeded forecasts. Second
and third year targets were also revised in May, taking into
consideration the immediate economic environment andtrends in resource prices.
Positive contributing factors behind increased income
and profits include a slight easing of the negative effects
of COVID-19 and, in the waste treatment and recycling
business, an increase in the amount of valuable materials
collected due to improvements in sorting and classification
during intermediate processing. There were also increases
in value and successful productization of recycled materials
and other transported materials, leading to a significant
increase in operating profit. Ongoing high resource prices
have also boosted sales and operating profit in our resource
recycling business.
By contrast, our renewable energy businessexperienced a drop in operating profit. Factors behind thisincluded temporary repair work that was needed at GreenPower Ichihara Co., Ltd., which generates power fromwoody biomass, and unstable operations at power plants in
Kanagawa and Fukushima in the first half of the fiscal year.
In addition, power purchasing prices surged due to an LNG
shortage in February and March, and the business also had
to account for amortization of goodwill for Green PowerIchihara, which was purchased in fiscal 03/2021.
Management places high importance on shareholder
returns, which is why our medium-term business plan sets
a dividend payout ratio target of 30% or greater as part ofplans to maximize corporate value over the medium- to longterm. After taking into account our results for the year ended
March 31, 2022, together with expectations for the businessenvironment, in addition to the planned year-end dividendsof 20 yen per share (15 yen on common stock plus a 5 yen
commemorative dividend), we increased the amount by 5 yen
per share, for a total of 25 yen per share (20 yen on common
stock plus a 5 yen commemorative dividend).

Progress on key strategies
As well as the synergies created by the integration, anumber of major initiatives have contributed to our financial
success. Let me explain those here, under the headings ofthe four key strategies.

Pursuing growth for recycling businesses
By integrating TAKEEI CORPORATION’s waste treatment andrecycling business with REVER HOLDINGS CORPORATION’s
resource recycling business, we are striving to increase scale
as well as to further enhance technologies used for collecting,sorting, classifying and processing waste and valuable
materials. We aim to make recycling an integrated businessranging from collection and transport of waste and valuable
materials to recycling of underused resources, along withproposals to recycle materials such as waste plastics andtreated residues, or dust.
Plastic recycling demand is set to rise following
Japan’s introduction of the Act on Promotion of Resource
Circulation for Plastics in 2022. Through joint researchwith Sumitomo Chemical Co., Ltd. we have confirmed thatuse of materials recycled from waste plastics provides
superior CO2 emissions reductions throughout product Life
cycle assessments (LCAs) compared to previous products
made from virgin materials.
We are also currently carrying out tests into using
waste plastics received by REVER HOLDINGS to create

TRE HOLDINGS CORPORATION Integrated report 2022

10

Message from the COO

RPF (solid fuel created from waste paper and plastic)
during intermediate processing at TAKEEI, with operations
scheduled to ramp up to full scale this term.
At the time of the integration, REVER HOLDINGS was
incurring approximately 3 billion yen per year in disposal
costs for dust produced during processes such as waste
plastic treatment, which we expected to reduce by using thefinal landfill site managed by TAKEEI. However, we changed
course after determining that it would be more advantageous
to recycle this dust into RPF and then to use that RPF inGroup as fuel for generation at Green Power Ichihara Co., Ltd.
RPF brings together three businesses—waste treatment,
resource recycling and renewable energy—and is a primeexample of synergies created by our integration.
Our patented Eco FoamTM product, which is also
created from dust collected during intermediate processing,came about through technological collaboration with steel
manufacturing companies and is an additive (foaming
inhibitor) for use in steelmaking furnaces. Eco FoamTM
continues to perform well and contribute to strong
business results.
These are some examples of the ways our Group uses
technological capabilities to transform what our customers
consider waste into valuable recycled materials and products.
Restoring such value to industries and the environment is oneof our main contributions to society.

11

TRE HOLDINGS CORPORATION Integrated report 2022

Promoting eco-friendly energy businesses
Our energy businesses include power generation from woody
biomass and thermal recycling of waste. During the period
ending March 2022 we operated six woody biomass power
generation plants in the Tohoku and Kanto regions of Japan,
and we are looking into increasing this number further while
monitoring the status of FIT schemes.
Potential for growth in our Renewable Energy Businessis tied to our ability to secure fuel for generation. Previously
our Group used sources such as cedar, cypress and pine
offcuts from forest thinnings or prunings from apple trees.
Over the last two years we have been purchasing abandoned
offcuts from forestry companies and sharing profits from theuse of such offcuts for fuel. We are also looking at rice husks
as a potential fuel source, as well as at raising fast-growing
crops such as sorghum (millet) on company-owned land.
Other initiatives include forest management, with plans
to begin thinning of a 240ha plot that we recently acquiredin Hanamaki city, Iwate. We are also looking into developing
agriculture and forestry businesses in the future to contributeto increasing Japan’s self-sufficiency in food.
Developing new technologies
A major goal of this integration was to increase our capacity
to develop more advanced recycling and energy technologies.
We are pursuing this aim on multiple fronts including M&As
and tie-ups with academia and government.
In May 2022, TAKEEI CORPORATION acquired allshares of JW GLASS RECYCLE CO.,LTD. from Asahi Pretec
Corp. Previously our Group could only handle items such as
automotive glass or plate glass from building demolitions
as landfill, which is an impediment toward achieving acircular economy. Automakers and construction companies,
on the other hand, have been increasing their efforts to use
recycled glass in order to meet public demand, achievecarbon neutral status, and position themselves as leading
environmental companies.
Demand for recycled glass products is strong, and the
M&A with JW GLASS RECYCLE helps to increase recycling ratios
for both TAKEEI and REVER HOLDINGS. The M&A also delivers
useful synergies—Group company Shinshu Takeei Co., Ltd.
had already begun recycling of solar panels, and recycled
glass from JW Glass Recycle can be used for materials suchas glass wool or exterior construction. The Group’s expanded
portfolio creates a wide range of synergies that enable us
to make bolder moves toward business expansion. This has
been one of the integration’s greatest benefits.
Additionally, while we have previously focused onmaterial recycling of plastics, we have also begun developing

chemical recycling and Carbon capture, utilization andstorage (CCUS) technologies, along with other productsthat will help achieve carbon neutrality. We have also
begun exploring plans to create methane using CO2 fromincinerators and hydrogen from solar power generation.

Managing sustainability
Sustainability initiatives are an increasingly important
strategy for the future. As part of our efforts to makesustainability fundamental to our business, our medium-termbusiness plan aims for complete carbon neutrality within five
years for all power used by the Group. Additionally, this June
we expressed our support for the Task Force on Climaterelated Financial Disclosures (TCFD) and began working
to expand disclosure in line with TCFD recommendations,which includes using digital technologies to visualize the CO2
emissions of our Group. At the same time, we have identified
five material issues for management that incorporate theGroup’s growth strategies and the Sustainable Development
Goals (SDGs).
Tackling social and environmental issues through ourGroup businesses is a key approach for achieving continual
growth and increasing brand awareness as a comprehensive
environmental management company. Our corporate mission
is to contribute to conserving the global environment. While
many companies strive to contribute to society, only a few
make it their core business as we have done.
Customers entrust us with their waste and recyclables,
confident that we will handle these in a way that reduces
CO2 emissions and environmental impact. Meanwhile, ouremployees are highly motivated in their work because theyknow our businesses make a difference. By operating froma solid foundation of environmental and social sustainability,
we aim to further enhance our core businesses so as to meetcustomer expectations and leverage the dedication of
our employees.

Incorporating stakeholder engagement
into management
Today there is intense public demand for environmental
action, which includes calls for stricter regulation of
CO2 emissions, waste plastics and other issues. Helping
customers and society to meet these demands is where the
TRE Group can excel. Our integration is the beginning of avirtuous cycle, combining resources from two companies
to create powerful new synergies. However, there is no
denying that the business environment is uncertain, due tosuch issues as the spread of COVID-19, rising material andenergy prices and emergent geopolitical risks. Indeed, major
waste management industries in Europe and America arealready working closely with government agencies and otherindustries to backcast from 2050 and begin regulating now
for a more sustainable society.
With this backdrop in mind, those of us in senior
management must look beyond immediate financial
results and engage in meaningful dialogue with a range ofstakeholders to identify the actions we should take, such as
strengthening the business and expanding overseas in waysthat go beyond the medium-term business plan.
As we shift to a longer-term mentality and adopt
more non-financial components such as ESG, it isimportant that we maintain dialogue with investors andshareholders, in particular, to hone our Group philosophy
and business decisions. For instance, our business may
require development of large-scale facilities and massive
infrastructural investments. These projects necessitate large
amounts of capital and protracted return times, sometimes
10 years or more. Furthermore, as a company focused on
creating environmental value, some of our businesses may
not be as highly profitable in the short term. Yet we continue
to support such investments, because these businesses
contribute to the public good and lead to synergy in otherfields. We are proud to be a company capable of creating
environmental and financial value in the medium and longterm. Naturally, as managers we also strive to maximize
results on a year-by-year basis, but it is incumbent on us not
to neglect our firm’s positioning, growth strategies andpublic standing.
An important task for us when engaging withstakeholders is to clarify short, medium and long-term timeframes, and to accurately disclose a ‘true to life’ image of TRE
HOLDINGS, including internal discussions and progress withcurrent businesses. Such engagement is invaluable—not only
for investors and shareholders but for a broad audience—andwill lead to increased corporate value.
This integrated report, the first published by TRE
HOLDINGS, is a first step toward such engagement, and one
which I hope will help to promote productive communication
with all those interested in TRE. I sincerely look forward toreceiving your candid comments, questions and feedback.

TRE HOLDINGS CORPORATION Integrated report 2022

12

The background of TRE HOLDINGS CORPORATIONThe birth of a new company group to lead the Japaneseenvironmental industry towards an efficient recycling society

Part

1

Corporate
ProfileTRE HOLDINGS CORPORATION
Comprehensive Environmental
Management Company

The economic system of mass-production/consumption/
disposal (a linear economy) brought much advancement anddevelopment to the economies, industries and societies of the20th century and much prosperity to human lives. However,it also resulted in global warming, the depletion of fossil fuels
and mineral resources, environmental pollution from waste
plastics and various other negative effects on the Earth’s
environment, and those effects worsen by the year. To solvethese environmental problems, there is a growing movement
to abandon the conventional linear economy and shift to a
new economic system that recycles limited resources: acircular economy.
A shift to a circular economy will require the waste
management companies that handle the treatment andrecycling of waste to play an even more important role thanever before. However many waste management companies
in Japan are micro, small and medium-sized companies andface challenges such as management efficiency, financial
foundations, human capital, business recognition andsocial credibility.
To overcome these challenges facing waste

Issues in themacro environment

What society needs

management companies, two of Japan’s leading waste
treatment and recycling companies, TAKEEI CORPORATION
and REVER HOLDINGS CORPORATION, established TRE
HOLDINGS CORPORATION as a joint holding company andintegrated their businesses on October 1, 2021. Based on
the shared conviction that this business integration would
contribute to the conservation of the global environment,
the two companies aimed to deliver speedier and morecompetitive solutions by leveraging their respective
resources. As a leading company in Japan’s environmental
industry, TRE HOLDINGS CORPORATION will go beyond thelimits of waste management companies and aim to help
create an efficient recycling society and a carbon-neutral
society through its business activities. Our ambition is to growas a comprehensive environmental management company byusing and supplementing the management resources of bothcompanies to expand our fields and areas of business andincrease our scale. And in the future, we aim to work closelywith other industries, consumer society, authorities and local
governments to establish our presence as an indispensable
part of the social infrastructure of the circular economy.

Earth

Japan

Industry

Global warming
Resource exhaustion
Plastic waste problems

Declining population
Shrinking market
Deteriorating infrastructure

Ineﬃcient management
Low credibility
Succession problems

Creation of an eﬃcient recycling society

Creation of a carbon-neutral society

two companies that share the same commitment to Earth’s environment
have joined hands to accelerate eﬃciency through joint capital expenditure
To leverage all management resources and display synergy, TAKEEI CORPORATION and
REVER HOLDINGS CORPORATION established a joint holding company on October 1, 2021.

To achieve those objective

Try
Technology

TRE HOLDINGS CORPORATION Integrated report 2022

Developing new technologies

Recycling

Pursuing growth for recycling businesses

Renewable Energy

Promoting eco-friendly energy businesses

Earth Ecology

13

Try

Conserving the global environment

TRE HOLDINGS CORPORATION Integrated report 2022

14

Principle and beliefs

We are committed to the conservation of the global environment.
TRE HOLDINGS CORPORATION
Comprehensive environmental management company

Principles

The origin of the company name

We are committed to the conservation of the
global environment.
With the serious impact of destruction of environments and climate change acrossthe globe underway, we strive to support the creation of an efficient recycling andcarbon-neutral society.
As a comprehensive environmental management company that places value
on harmony with nature and coexistence with the local ecosystem, we are pursuing
growth for recycling businesses and promoting eco-friendly energy businesses.
To that end, we also actively pursue the development of innovative technology.
We work to develop further well-balanced relationships with all stakeholders
and implement sustainability management to facilitate the delivery of continuous
socioeconomic growth.

Try

Try

Technology
Recycling

Developing new technologies
Pursuing growth for recycling businesses

Renewable Energy

Earth Ecology

Promoting eco-friendly
energy businesses

Conserving the global environment

Mission statement

The meaning behind the logo

Toward the future through our sustainable creativity.

Our logo represents a “vortex of circulation” that draws thesurroundings into the ecological flow. The upper and lower
circles stand for industries and waste companies. The
connecting circles also spell out the three letters TRE. Thisshows the determination of TRE HOLDINGS to be at the centerof the creation of an efficient recycling society. The color is abeautiful green inspired by jasper, a precious stone that was

It is said that if consumer lifestyles continue at their current pace, we will eventuallyneed 2.8 planet Earths’ worth of natural resources to keep going.
There is a limit to the Earth’s resources. What if, however, we managed to turn the waste
emitted into resources again?

The name TRE HOLDINGS contains a great deal of meaningand emotion for us. The “T” stands for “Try” as well as for the“Technology” of the two companies, and both words indicate
our spirited determination to develop new technologies. The“R” stands for “Recycle,” representing an efficient recycling
society, and for the “Renewable energy” emblematic of acarbon-neutral society, showing the ambitions of two of ourbusinesses. The “E” stands for the “Earth” and its “Ecology”
that will be conserved through our activities. The company
name was chosen by all employees of both the TAKEEI Groupand the REVER Group. Over 500 people voted, and they
all participated with the desire to create a new company
for themselves.

been used for Japanese magatama jewels (representing“the source of life”) since ancient times. We place great
importance on the invigorating impression made by the brightand highly pure color scheme.
It is a symbolization of the “vortex of circulation”
decided on through the votes of employees of the TAKEEI Groupand the REVER Group.

Things believed to have no use may very well hold massive potential and open up a
future for all of us.
That is what we want to create: a sustainable society that discards nothing in
the future.
We are TRE HOLDINGS, and we will never give up until that dream is fulfilled.

15

TRE HOLDINGS CORPORATION Integrated report 2022

TRE HOLDINGS CORPORATION Integrated report 2022

16

History

Two leading companies in the waste treatment and recycling
business break new ground and begin a new era
as a comprehensive environmental management company

1900

1960s

1970s

1980s

Rapid economic growth due to a linear economy that prioritized economic activity
Increased demand for steel due toheavy industrialization

Pollution becomes a societal problem

Regulations and events related
to environmental laws

1990s

Promotion of global warming
countermeasures

1970

1993

Basic Act on the Environment

1971

Basic Law for Environmental
Pollution Control

Environment Agency
established

1968

1972

Air Pollution Control
Act and Noise Regulation Law

1998

Home Appliance
Recycling Law

Environment Agency publishes
the “Environment White Paper”
Nature Conservation Act

1972

Changed company name to
Suzutoku LTD.
(now: REVER CORPORATION)

Suzuki Tokugoro Shoten founded

Invigorated recycling activity for an
efficient recycling society

1987

1994

Installed and began to operate Operation of a TV cathode-ray
the first shredder at the
tube recycling demonstration
Suzutoku Kodama Plant
plant at Nakadaya Corp.
(now the REVER CORPORATION
Kodama Plant)

in 1967. The two companies have strengthened their business
functions while supporting the rapid growth of the Japanese
economy from behind, adapting to the environmental regulations
that changed along with developments in Japan’s economy andsociety. The TRE Group will use the trust we have built throughour histories as a foundation to pioneer a new age for Japan.

2010s

2000

2020s

Initiatives for the achievement of a circular economy and renewable energy

Serious global warming
measures begin

The Paris Agreement is adopted

2011

Basic Law for Establishing the Recycling-based Society
Construction Material Recycling Law

Act on Special Measures Concerning Procurement ofElectricity from Renewable Energy Sources byElectricity Utilities

Environment Agency becomes the Ministryof the Environment

2012

2001

Established and strengthened the foundation of the metal recycling business

1904

2000s

Unlawful dumping becomesan apparent issue

Waste Management and Public
Cleansing Law

1967

TRE HOLDINGS was established in October 2021 when
TAKEEI CORPORATION and REVER HOLDINGS CORPORATION,
two leading waste treatment and recycling businesses inJapan, established a joint holding company and integrated
their businesses. REVER HOLDINGS CORPORATION dates its
history back to 1904 while TAKEEI CORPORATION was founded2002

Act on Promotion of Recycling of Small Waste Electricaland Electronic Equipment

Expanded the “metal recycling business” to the“comprehensive recycling business”

2003

Acquired Nakadaya Corp. as a subsidiary and made its
subsidiaries into group companies

Shinsei Co., Ltd. became a subsidiary

Enlarged network of
waste management companies

2013

2007

Established Suzutoku Holdings Corporation(now REVER HOLDINGS CORPORATION)

Established integrated management structure
for industrial waste from collection to treatment

1967

Takeshi Fujimoto(former Chairman of
TAKEEI CORPORATION)
started a private businessin Kawasaki, Kanagawa

1977

Established an intermediate
treatment plant quickly

1984

Incorporated and established as Completed a landfill
at Narita, Chiba
TAKEEI Construction Co., Ltd.
(closed in 1999)

1987

Initiated the operationof the Okido Final
Landfill in the city of Chiba.

1988

Changed its company name to
TAKEEI CORPORATION

1991

Listed on the Second Section of theTokyo Stock Exchange

2014

Merger of REVER CORPORATIONGroup companies(from eight group companies to six)*1

Established HIDAKA SUZUTOKU (Thailand) Co., Ltd.

Constructed the Kawasaki
Intermediate Treatment
Facility in Kawasaki,
Kanagawa

Invested in New Energy Supply Corporation and Ichihara
New Energy Co., Ltd. to enter the renewable energy business

1992

Recycle Peer Co., Ltd, established as a joint venturesubsidiary of 24 companies
Constructed Tokyo Eco-Town Facility in Jonanjima, Ota ward,
Tokyo (now TAKEEI CORPORATION’s Tokyo Recycling Center)

Completed an intermediate
treatment facility at
Yotsukaidou, Chiba

TRE HOLDINGS CORPORATION Integrated report 2022

*2 Renewable energy feed-in tariff system

October 2021

Changed market to the First Section of theTokyo Stock Exchange

2006

Tsugaru Biomass Power Generation Co., Ltd.
completed the Hirakawa Power Plant in
Hirakawa, Aomori.
Tsugaru Apple Power Co., Ltd. started electricity
retailing business.

2007 (May 30 = Zero Waste Day)

*1 Does not include REVER HOLDINGSCORPORATION and affiliates
accounted for by the equity method

Entered power generation business taking
advantage of the FIT system*2

2014

Constructed the Kawasaki Recycling Centerin Kawasaki, Kanagawa

Merger of REVER CORPORATIONGroup companies(from six group companies to three)*1

Strengthened renewable energy business

2005

Listed on the Mothers of the Tokyo Stock Exchange

17

2019

Metal Recycling Co., Ltd. becamea fully owned subsidiary

2012

2021
2022

2017

Pursued M&As and collaborations between companies
and expanded network

2004

2020

Registered as an authorized business under the Act on
Promotion of Recycling of Small Waste Electrical andElectronic Equipment

Changed company name to
REVER HOLDINGS CORPORATION

Incorporated as
Suzuki Tokugoro Shoten Co., Ltd.

Act on Promotion of Resource Circulation
for Plastics

End-of-Life Vehicle Recycling Law
Act on Special Measures Concerning
New Energy Use by Electricity Providers

2006

1935

2021

TRE HOLDINGS CORPORATION
established

April 2022

TRE HOLDINGS CORPORATION
Listed in the Tokyo Stock
Exchange Prime Market

Business and capital alliance with Veolia Japan K.K.

2015

2020

Established TAKEEI Forestry Co., Ltd.
Established TAKEEI Foundation for
SDGs Promotion (now TRE Foundation for
SDGs Promotion)

2022

Merger of five power retailing companies

TRE HOLDINGS CORPORATION Integrated report 2022

18

Value creation model

Structure for creating environmental value that will contribute to
the creation of an efficient recycling, carbon-neutral society

Environmental issue

InputsTRE HOLDINGS is building a value creation model aimed ataccelerating the shift from a linear to a circular economy
and contributing to the creation of an efficient recycling,carbon-neutral society. As a comprehensive environmental
management company, the TRE Group is engaged in waste

Business model

treatment and recycling, resource recycling, renewable energy,
environmental engineering and environmental consulting
businesses. We create various types of environmental value
by taking in the waste generated by a consumer society andrepurposing it as energy and resources.

Outputs

Outcomes

Environmental value

Limit of alinear economy
Financial
capital•Healthy financial foundation•Ability to generate ample cash flow
•Stable transactions withfinancial institutions

Shift to acircular economy
Waste & scrap
Resources taken in
Approx.

1,300,000

Natural resource
exhaustion

tons/year

Manufactured
capitalIncrease inlandfill waste

Humancapital•Industry-leading sorting andrecycling facilities•Woody biomass power
generation facilities•Managers with expertise inenvironmental businesses•Employees that support
operational excellence•Industrial waste•Waste fromconstruction industry•Ferrous andnon-ferrous scrap•End-of-life vehicles•Scrapped home
appliances•Small home
appliances, other

Fuel forpower generation
Environmental
pollution caused
by waste

Worsening climatechange problems

Intellectual
capitalSocial andrelationship capital

Naturalcapital•Waste treatment technology•Recycling technology experience•Woody biomass power
generation technology•Environmental plant andproduct-related patents•Relationships of trust with authorities
and local governments•Partnerships with raw material producers,
manufacturers of assembled products
and others•Collaborations with universities andresearch institutions•Energy•Water•Sunlight•Forests

Unused forest
resources input
Approx.

600,000
tons/year•Thinned wood
•Abandoned offcuts•Timber damaged
by insects or disaster

TRE HOLDINGS CORPORATION Integrated report 2022

Resources
recycled

Principles

Approx.

We are committed to the conservationof the global environment
Waste treatment andrecycling businessResource
recycling business

1,200,000
tons/year

Recyclingefficiency

92.4

%

Medium-term
management plan

Reducequantityof landfill
waste

Prevent
environmental
pollution

Creation of an
efficientrecyclingsociety

Reduce CO2
emissions(4 key strategies)•Pursuing growth forrecycling businesses•Promoting eco-friendly
energy businesses•Continually striving todevelop new technologies•Sustainability management

Biomass
power generated
Approx.

600,000
MWh/year

Promote useof renewableenergyRPF input
Approx.

40,000tons/year

Other rawmaterials

Investment (increase financial and non-financial capital)

19

Reduce useof natural
resources

Renewableenergy business

Other
Environmental
engineering business
Environmental
consulting businessSolar power
generated

Conserve forest
resources

Approx.

4,000
MWh/year

Creation of acarbon-neutral
society

Contribute to
local economic
development

Corporate governance

Economic value (revenue)

TRE HOLDINGS CORPORATION Integrated report 2022

20

Management capital

We will aim to increase corporate value by developing the various
types of capital that support the growth of TRE HOLDINGS

Financial capital

Manufactured capital

Human capitalIntellectual capitalSocial and relationship capitalBusiness relationship

Environmental resources

To achieve sustainable growth, wemust establish a solid financial
foundation and prepare for thevarious risks surrounding the market
environment. At the same time,
we must also secure the financial
leeway to make investment decisions
nimbly and flexibly when it comesto capital expenditure, R&D, M&A
and alliances aimed at increasing
corporate value. TRE HOLDINGS
will aim for an ROE of 8% or more,a dividend payout ratio of at least
30%, a capital adequacy ratio of 40%
or higher and a minimum rating of
BBB to provide balanced shareholder
returns, make new investments andachieve a stable financial foundation.

The TRE Group’s business activities
are centered on the Kanto region,
where the highest volume of waste
in Japan is generated. We own
numerous locations such as recycling
and resource recovery facilities
and final landfill sites as well asa fleet of various types of waste
collection and transporting vehicles.
Additionally, by using unused wood
generated and collected from theareas around the power plant andneighboring municipalities in our
woody biomass power generation
business, we produce renewableenergy and supply communities withenergy that is “local production for
local consumption”

Providing a pleasant working
environment for employees is an
important management issue forcompanies. The TRE Group strives tocreate an environment that respects
diversity and where every individual
can work positively and live fulfilling
lives not only at work but also in theirown personal time. Moreover, it isessential to the sustained growth of
the TRE Group that employees
acquire and improve their knowledge
and skills. We will help employees
improve their skillsets bysupporting attendance at training
courses and seminars andenhancing up the support systemfor obtaining qualifications.

To contribute to the creation ofan efficient recycling society,we will use the wealth ofaccomplishments and experience
TRE Group has cultivated so
far to further advance oursorting and classification andprocessing technologies. Apartfrom mobilizing our accumulated
technological capabilities
towards the development of newtechnologies, we will also carryout R&D together with partners
such as universities and business
partners in order to contribute to
the creation of a carbon-neutral
society as well.

Over the years, we have built
relationships of trust with theresidents around our waste
treatment and recycling facilities
as well as all other stakeholders.
We have also obtained permits andlicenses, which are indispensable
for waste treatment and recycling,from local governments in many
prefectures in Japan as we strive toaccurately meet the diverse needsof our customers. In the renewableenergy business, we work together
with local authorities and forestry
workers to not only build a stable
fuel procurement structure but
also to contribute to restoring andrevitalizing forests.

The philosophy of the TRE Group is“We are committed to the conservationof the global environment,” andbased on that, we endeavor to use
natural resources effectively andreduce our environmental footprintin the course of our businessactivities. We prioritize material
recycling during waste treatment
and recycling, and we try to recoverenergy from items that are difficult
to recycle for materials throughthermal recycling. We also plan to
be fully carbon neutral by FY2026 interms of CO2 emitted from the power
used by the TRE Group.

ROE

Intermediate waste treatment
and recycling facilities

Number of employees in
the whole GroupR&D personnel

Business partners

Fuel input for Woody biomass
power generation

Finances

11.6%
Dividend payout ratio

36.1%

Based on full-year results

Capital adequacy ratio

48.3%
RatingWe intend to obtain one as
TRE HOLDINGS CORPORATION.

21

TRE HOLDINGS CORPORATION Integrated report 2022

Facilities management

34 locations
Final landfill sites

5 locations(including two under development)Collection and transportation vehicles

462

Woody biomass power generation plants

6

Human resources

2,103

Business expertise

33

Patents obtained forrecycling-related technologies

33

Approx.

15,000 companies
Authorities from which permits andlicenses have been obtained(for collection and transportation)

36 prefectures

Natural capital

Approx.

600,000 tons/year
Forest area owned

360 haAuthorities from which permits andlicenses have been obtained(for disposal)

23 prefectures

TRE HOLDINGS CORPORATION Integrated report 2022

22

Overview of businesses by segment

We are involved in various environmental businesses aimed
at creating an efficient recycling, carbon-neutral society

Business segment

Business function
Collection andtransportation

Waste Treatment andRecycling Business

Waste treatment(construction-related)

Recycling
Landfill (final disposal)

Metal recycling

Resource
Recycling Business

Automobile recycling
Home appliance recycling
Waste treatment (metal)

Business overview*1

FY03/2022 sales composition ratio*2

Renewable
Energy Business

Power retailing
Forest management

Use of residual heat(for agricultural and other purposes)

Other
Environmental
Engineering Business
Environmental
Consulting Business

Design and construction ofenvironmental devices and plants
Development, manufactureand sale of special vehicles
Environmental measurement,
surveys and analysis
Real estate appraisal
and valuation

We recycle different types of materials. In metal recycling, we purchase scrap metal frommanufacturers, building demolition contractors and local governments, and shear, compress,
crush, sort and recycle it into metal raw materials, depending on the type of material. In
automobile recycling, we disassemble end-of-life vehicles sourced from dealers and auctions,sell the reusable parts and crush and sort after disassemble. In home appliance recycling, we
receive the four home appliances collected under the Home Appliance Recycling Law fromrecycling system management companies, and manage designated transaction points andrecycling facilities depending on the region. In metal waste treatment, we compress and crush
metal waste.

We produce green power through woody biomass power generation and supply it to local
elementary and middle schools and public facilities, ensuring the local production andconsumption of energy. We have built a stable fuel procurement structure of unused forest
resources such as offcuts from forest thinning and pruned branches through collaborations
with local and surrounding authorities and forestry workers. We also use the residual heatthat results from power generation in the cultivation of sweet tomatoes*3 and wood ear
mushrooms. The Group is strengthening its efforts in forestry management (planning, staged
logging, afforestation) for the forests it owns. We are also promoting more renewable energies
that can be recycled as resources.

TRE HOLDINGS CORPORATION Integrated report 2022

68,234
68,234(million yen)

37%
37%

(million yen)

Total
Total
consolidated
sales
consolidated
sales

68,234
68,234(million yen)(million yen)

35%%

35
24,05524,055

12,416
12,416
Total
Total
18%% consolidated
consolidated
18
sales
sales
68,234
68,234(million yen)(million yen) perating companies: Tsugaru Biomass Power Generation Co., Ltd.
O
and 10 other Group companies
The environmental engineering business designs and constructs environmental equipment
and plants and develops, manufactures and sells special vehicles with a focus onenvironmental device and plant-related businesses, LPG bulk lorries, and garbage collection
trucks. It also offers a maintenance service structure so that the equipment and vehicles
introduced can always be used in excellent condition. We provide various consulting services
in our environmental consulting business. These include industrial waste management
and measurement certification operations for companies, environmental protection work,
environmental measurement, investigation and analysis of waste, soil, water quality and air.
We also undertake environmental assessment work for local governments and authorities.

6,754
6,754
10%
10%
10

Total
consolidated
Total
consolidated
sales
sales

68,234
68,234(million yen)(million yen) perating companies: Fuji Car Manufacturing Co., Ltd. (environmental engineering),
O
Environmental Conservation Co., Ltd., Earth-Appraisal Co., Ltd. (environmental consulting)*1 The number of operating companies is current as of September 1, 2022
*3 High-sugar-content tomatoes

23

Total
Total
consolidated
consolidated
sales
sales

Operating companies: TAKEEI CORPORATION and 12 other Group companies

Operating companies: REVER HOLDINGS CORPORATION and 3 other Group companies

Woody biomass
power generation

25,00825,008

TRE HOLDINGS offers integrated processing in waste treatment and recycling businesses.
In collection and transportation, we collect waste from construction and building demolition
sites and transport them to intermediate treatment facilities. In intermediate treatment,
we accurately sort the delivered waste by item type, remove extraneous material, crush,
compress and chemically treat it. In recycling, we process, compact and check the quality ofrecyclable waste such as construction work materials, plasterboard, wastepaper and plastics.
In landfilling, we treat residue that is difficult to recycle at landfills for final disposal.

*2 S ales posted represent figures after “Adjustments” under“Financial Highlights (consolidated)” on pp. 73–74 have been reflected
TRE HOLDINGS CORPORATION Integrated report 2022

24

Overall business model

Creating environmental value through waste treatment and recycling,
resource recycling and renewable energy businesses

TRE HOLDINGS is committed to creating environmental
value that contributes to the creation of an efficient recycling,carbon-neutral society.
Our efforts are centered on three businesses:
waste treatment and recycling, resource recycling andrenewable energy.
In the waste treatment and recycling business, we arepromoting the recycling of resources using the high-levelsorting technology we have developed since our founding.
There are two established business models in the renewableenergy business: the urban model and the integrated forestmodel. We are developing woody biomass power generation
businesses rooted in local communities.

TRE Group business areas

Waste treatment andrecycling businessResource recycling business(Other companies’ final landfill sites)

Urban model(See p. 41 onward for more details)

Former landfills are used aspark golf courses and solar
power generation facilities

Residue*

Wood chips (construction waste)

RPF manufacturing plant*Hard-to-recycle
wasteIntermediate treatment facilities

Renewable energy business (see p. 51 onward for more details)

Company’s final landfill sites

Woody biomass power
generation plants

Integrated forest model
Forest owned

Domestic forest
Offcuts from forest thinning,underused forest resources

RPF

RPF raw materials

Power

Wood chip factory

Recycle resources

Wood chips

Raw material manufacturers

Collect and transport

Power retailingcompanies

Woody biomass power generation plants

Residual heat

Raw materials

Power

Power

Receive resources

Waste from constructionindustry, ferrous andnon-ferrous scrap, end-of life
vehicles, home appliances,small home appliances

Cultivation ofagricultural produce

Consumer goods manufacturers

Power retailingcompanies

Consumers and consumer society

Buildings

25

TRE HOLDINGS CORPORATION Integrated report 2022

Construction sites

Power

Sweet tomatoes, wood ear mushrooms

Products
Power

Local community

Local community

TRE HOLDINGS CORPORATION Integrated report 2022

26

The Group’s long-term vision

A growth strategy that will enhance existing businesses whileconsidering M&A, alliances and expansion overseas

Part

2

Vision andStrategy

Becoming a Comprehensive Environmental
Management Company that Leads theEnvironmental Industry

To transition from a linear economy of mass-production/
consumption/disposal to a circular economy focused on
reducing resource use and recycling, there must be an effective
connection between industries that handle manufacturing andthe waste management companies that recycle or dispose ofwaste. The issue in Japan, however, is that waste managementcompanies largely consist of small and medium-scalecompanies, which means that their scale of business as those
responsible for the circular economy is extremely small.
That is why TRE HOLDINGS has set a long-term vision
for the year 2050 of acquiring enough technological capability,
scale, and social credibility to play a leading role in the circular
economy as a comprehensive environmental managementcompany. To make that vision a reality, we will pursue a growthstrategy of enhancing existing businesses while consideringvarious options such as M&A, alliances and expansion
overseas. At the same time, as a company that seeks to help
achieve a carbon-neutral society, we intend to make all theenergy used by our Group carbon-neutral in the within five
years of the integration of the two companies that form TRE
HOLDINGS, and to make the greenhouse gas emissions fromall of our business activities net zero by FY2050.
To serve as a milestone on the way to achieving thisvision, we have set a target of growing into a company withsales of 100 billion yen with an operating profit margin of 10%
or more by FY2026.
Deploy a Japanese waste treatment andresource recycling scheme overseas
Pursue M&A and alliances that will
form the core of a reorganized industry
Pursue growth for recycling businesses,
promote eco-friendly energy businesses
and develop new technologies

Approx.
110 trillion yen

The market size of theenvironmental industry in Japan
Conserving thenatural environment
Approx. trillion yen

Preventing
environmental pollution
Approx.
trillion yen

Forest management

Environmental
consulting

8

13

Environmental
industrymarket size
Approx.

110

trillion yen

Global WarmingCountermeasures
Approx.
trillion yen

Treating waste andusing resources effectively
trillion yen
Approx.

51

Waste treatment
Metal recycling
Home appliance recycling
Automobile recycling

38

Woody biomass
power generation
Landfill
Environmental Engineering

Source: “Report on the Market Size and Employment of the Environmental Industry”
released in June 2021 (2019 edition) by the Environmental Industry Market
Size Study Group.

Become a comprehensive
environmental managementcompany that leads theenvironmental industry
Expansion
overseas
M&A andalliances

Integration

Enhance existing
businesses

2020

2021

Mar. 2024 Mar. 2026

Targets for FY2024
Net sales: 98.0 billion yen*
Operating profit: 10.1 billion yen**after an upward revision in May 2022

27

TRE HOLDINGS CORPORATION Integrated report 2022

Targets for FY2026
Net sales: 100.0 billion yen
Operating profit margin: 10% or more
Integrated synergy: Create 10 billion yen in new sales

2050

FutureTargets for year 2050
Net zero greenhousegas emissions

TRE HOLDINGS CORPORATION Integrated report 2022

28

Material issues

We have identified five material issues as priority issues tobe tackled

Basic approach

Our vision for an ideal society
An efficient
recycling society

Putting our principles into practice

Create anefficientrecycling society
Enhance our brand value andincrease our recognition as acomprehensive environmental
management company

2

Provide pleasantworkingenvironments

Code of Conduct

STEP

3

STEP

Scoring material
issue candidates

Narrowing down candidates formaterial issues

Approval frommanagement

We drew up a comprehensive
longlist of issues, drawing on
international guidelines such as the
GRI standard and SASB standard,
as well as recent social demands
and trends. From the longlist, wegrouped similar items, eliminatedthose with little relation to ourbusiness and finally selected 53
issues as material issue candidates.

We performed afour-stage evaluation(scoring) of the
53 material issue
candidates fromtwo viewpoints:
their importance to
TRE HOLDINGS andtheir importance tostakeholders.

We ranked the scoring results inorder of importance, then gathered
employees from a range of departments
and held a workshop with them divided
into four teams. They debated theappropriateness of the ranking in lightof TRE HOLDINGS’ corporate principles
and business strategy. Based on thecontents of those debates and with TRE
HOLDINGS’ vision for its future self in
mind, we finally narrowed the material
issues down to five.

The CSR and
Sustainability
Promotion Committee
exchanged opinions
on the organizedmaterial issues andjudged them to beappropriate, and they
were settled uponafter the approval of
the Board of Directors
in July 2022.

TRE HOLDINGS CORPORATION Integrated report 2022

Material issues

Vision for the future(KPIs, etc.)

SDGs we cancontribute toCreate anefficient recycling
society

We will respond
appropriately andaccurately to theincreasingly sophisticatedrecycling needs of waste
generators using thestrengths and expertiseof the Waste Treatment &Recycling Business.

• Build a resource recycling scheme bylinking waste management companies
and other industries.
• Improve facilities and realize plans foradvanced sorting sites.
• Add value to unused resources or turnthem into products.
• Build a business scheme for recycling
waste plastic.

pp.
41–50

Create a carbonneutral society

We will generate
renewable energy,
reduce the greenhousegases emitted from ourbusinesses (make energy
used carbon neutral by2026), and contributeto carbon neutrality
throughout society byproviding environmental
devices and technologies.

• Establish/operate sustainable woody
biomass power generation plants
integrated with forest management.
• Visualize greenhouse gas (CO2) emissions
from our business activities andimplement measures to reduce them.
• Provide environmental equipment,
technology and services that help
stakeholders reduce greenhousegases (CO2).

pp.
51–56

Provide pleasantworkingenvironments

We will provide working
environments where
diverse talents can work
actively with peace ofmind and where allindividuals can display
their potential to thefullest.

• Create workplaces where anyone canwork in health and safety and with peaceof mind.
• Promote work-life balance.
• Develop the human resources that will
support the company’s sustained growthby carrying out all kinds of training andproviding a system to support
obtaining qualifications.

pp.
65–68

Strengthen
the corporate
governancestructure

We will ensure that wehave a sound and highlytransparent governancestructure, including
compliance, in order topromote sustainability
management.

• Maintain the transparency of management
by establishing various committees.
• Conduct training to ensure thoroughcompliance and check the stateof observance.
• Practice appropriate information
management and risk management

Enhance ourbrand value andincrease ourrecognition as acomprehensive
environmental
managementcompany

We will undertake
initiatives and share
information that earns
us the trust and businessof customers, business
partners, shareholders
and investors.

• Disclose information in a timely andsuitable fashion.
• Practice fair and equitable IR activities.
• Engage stakeholders

Main initiatives—

Related
pages

pp.
60–64

4

Considering candidates formaterial issues

Sustainable growth incorporate value

29

STEP

Strengthen thecorporate
governance structure

The foundation of business continuity

We collected and organized a wide range of social issues,
analyzed the material issues from two viewpoints—theirimportance to TRE HOLDINGS and their importance tostakeholders—and broadly selected the issues. The fiveissues were identified after an employee workshop had been
held and the CSR and Sustainability Promotion Committee
deliberated the issue.
Going forward, we will set medium and long-termtargets, action plans and KPIs based on the identified material
issues and work steadily through the PDCA cycle. However,these material issues will be continuously revised based on
factors such as changes in social conditions and changes inour medium- to long-term management strategies.

1

Create acarbon-neutral
society

Five material issues

The process of identifying material issues

STEP

A carbon-neutral
society

Solving social issues through our businesses

In recent years, there has been an accelerating movement
globally to resolve social problems, represented by initiatives
such as the goals of the Paris agreement and the UN’s
Sustainable Development Goals (SDGs). To respond to thissocietal demand while also putting TRE HOLDINGS’ principles
that state “We are committed to the conservation of the global
environment” into practice, we have identified material (key)issues that we will prioritize. To identify these issues, we held
multiple discussions and debates from views such as whichsocial issues we could help resolve through our strengths andexpertise as a comprehensive environmental managementcompany, which matters we should use as a foundation forthe continued business of TRE HOLDINGS, and which matterswould be necessary for sustained growth in corporate value.
At the end of this repeated processes, we identified fivematerial issues.

Five material issues

p. 12
—

pp.
37–38
p. 61

TRE HOLDINGS CORPORATION Integrated report 2022

30

Medium-term business plan: Results for FY03/2022

In the first year after integration, we achieved our targets andrevised our medium-term business plan upwards

To serve as a milestone on the way to achieving our long-term
vision of becoming the leading comprehensive environmental
management company in the environmental industry, TRE
HOLDINGS has set a target of growing into a company with
net sales of 100 billion yen with an operating profit margin of
10% or more by FY2026, five years after integration.
With this goal in mind, we formulated and announced
our medium-term business plan: “Towards an Efficient
Recycling and Carbon-Neutral Society” at the same time as thecompany’s founding in October 2021. Under this plan, we aim toachieve sales of 98.0 billion yen and an operating profit of 10.1
billion yen by FY2024. (after an upward revision in May 2022)
Under the medium-term business plan, we establishedfour basic strategies to achieve this target, namely “pursuing
growth for recycling businesses,” “promoting eco-friendly
energy businesses,” “developing new technologies” and“sustainability management,” and each business is carryingout specific measures according to these strategies.
The effect of COVID-19 on the Waste Treatment &Recycling Business was minor in FY03/2022, and our revenue
improved as efforts to add value to and commercialize waste
bore fruit. In the Resource Recycling Business, the quantityof valuable resources recovered increased due to improved

sorting at intermediate treatment facilities. This, coupled withthe synergistic effect of higher prices in resource markets,
contributed significantly to overall performance together with
the Waste Treatment & Recycling Business. In the Renewable
Energy Business, we generate and sell power through asystem of six power plants including Tamura Biomass EnergyCo., Ltd. which began business operations in April 2021. We
are also engaged in forest management. In other businesses,
we are harnessing synergy within the Group to proactively
engage in product development, research and technology
development, cross-selling and other activities.
As a result of these initiatives, in FY03/2022, werecorded net sales of 68,234 million yen, operating profit of
7,659 million yen, ordinary profit of 7,547 million yen andprofit attributable to owners of the parent of 4,742 million yen,steadily accomplishing the goals that were set at integration
and revised upwards in February 2022.
In May 2022, after comprehensively considering
the current coronavirus crisis and resource market prices
and other factors in the economic environment, the Group
increased the numerical targets for the second and third year
post-integration that it had announced at the timeof integration.

Progress of financial targets
Financial targets
ROE

40% or more

BBB or higher

FY03/22 results

End-March 2022

TRE’s

11.6%

Full-year results

Progress
Net sales

68,234

67,400101.2%

Operating profit

7,659

7,430

103.1%

Ordinary profit

7,547

7,220

104.5%

4,742

4,420

Profit attributable toowners of parent

TRE HOLDINGS CORPORATION Integrated report 2022

Dividend Commemorative
dividend
per share

JPY5.0

JPY25.0

Total

Dividend payout ratio:
107.3%* TRE HOLDINGS was established on October 1, 2021 as a joint holding company, and its businessis integrated with TAKEEI CORPORATION as the acquiring corporation and REVER HOLDINGSCORPORATION as the acquired corporation. Accordingly, in the fiscal year under review, theconsolidated financial results are a consolidation, with TAKEEI CORPORATION's consolidated
results from April 1, 2021 to March 31, 2022 serving as the base to which REVER HOLDINGSCORPORATION's consolidated results for October 1, 2021 to March 3, 2022 have been added.
* YoY comparisons are not provided as this is the first fiscal year since the establishment of the Company.
* Earnings forecast shows figures revised upward on February 14, 2022.

31

JPY20.0

Over30%* Calculating based on dividends of JPY25 per share forresults from October 2021-March 2022, plus TAKEEI’s
interim dividend of 15 yen for Q2 of the fiscal year. The
dividend payout ratio is 36.1% in real terms.

FY03/22
Earnings per
share

JPY110.79

9.2% or more

FY03/22 results

expected rating

Calculated for the
1st year of themedium-termbusiness plan

11.2%

*1

11.4%

*2

(Millions of yen)
Results
1st year of medium-term business plan
(FY03/22)
Full-year
results (Note1, 2)

YoY

Plan
2nd year of medium-term business plan 3rd year of medium-term business plan
(FY03/23)(FY03/24)

1st year of medium-term 2nd year of
2nd after
medium-termbusiness plan (Note 4)
review (Note 2)
Progress business plan

FY03/22
Ordinary
dividend

Operatingprofit margin

Progress of medium-term business plan (Review of 2nd and 3rd year numerical targets)

FY03/21Full-year
results (Note 1)

Dividends

48.3%

1st year of themedium-termbusiness plan

*1. Calculated for the period of FY03/22. (April 1, 2021 to March 31, 2022 for TAKEEI CORPORATION; October 1, 2021 to March 31, 2022 for REVER HOLDINGS CORPORATION)*2. Calculated for the 1st year of the Medium-term Business Plan. (April 1, 2021 to March 31, 2022 for both TAKEEI CORPORATION and REVER HOLDINGS CORPORATION)(Millions of yen)

FY03/22

Credit rating

8% or more

Summary of consolidated cumulative FY03/2022 results

1st year of the Medium-termbusiness plan (Full-year forecast)

Equity ratio

Change

3rd year of
3rd yearmedium-term
afterbusiness plan review (Note 2)

ChangeNet sales

73,47090,584+23.3%

89,700101.0%

90,00094,200+4.7%

92,00098,000+6.5%

Operatingprofit6,727

10,326+53.5%

10,100102.2%

8,400

9,300

+10.7%

9,000

10,150+12.8%

Operatingprofitmargin

9.2%

11.4%

+24.5%

11.3%

101.2%

9.3%

9.9%

+5.8%

9.8%

10.4%

+5.9%

Profitattributableto ownersof parent

4,084

7,248

+77.5%

6,930

104.6%

5,460

5,900

+8.1%

5,890

6,440

+9.3%

-

¥141.1-¥131.7107.1%¥106.3¥114.8+8.0%¥114.6¥125.3+9.3%

Earnings
per share(Note 3)Note 1: Results for the integrated companies, TAKEEI CORPORATION and REVER HOLDINGS CORPORATION, for the period from April to March of the following year,
have been combined to make YoY comparisons.
Note 2: Forecasts for operating profit include impact from goodwill related to the business integration (JPY89 million for FY03/22, and JPY178 million for FY03/23 onward).
Note 3: Earnings per share is calculated based on 51,362,030 shares, which is the number of issued shares at the end of FY03/22 minus the number of treasury
shares at the end of the same year, to facilitate understanding of the actual progress of the medium-term business plan.
Note 4: Forecasts for the first year of the medium-term business plan have also been adjusted upward based on the full-year consolidated earnings forecast
disclosed on February 14, 2022

TRE HOLDINGS CORPORATION Integrated report 202232

Growth strategy

We will aim to maximize business integration synergy and steadily
implement policies based on our growth strategy themes

Growth strategy theme 1
Pursuing growth for recycling businesses
By maximizing the synergy of integration in order to share,combine and restructure the technology, expertise andfacilities that both TAKEEI CORPORATION and REVERHOLDINGS CORPORATION have accumulated over many
years, we will provide our customers with an even safer,enriched value chain that affords them peace of mind.
Specifically, by boosting capital investments, adding
increased value to goods shipped out and increasing therecycling rate, we will aim to satisfy the demands andexpectations of customers and break into new customer
segments. Additionally, we will press forward with crossselling that leverages the strengths of both companies
and meet recycling needs accurately in order to expand
the volumes and the types of waste we handle, increasing
sales. We also plan to focus on improving facilities, making
effective use of the business locations of both companies
and optimizing logistics while also striving to reduce costs
through efforts to convert waste to raw materials and fuel.
In particular, this will involve improving our shredder dust
sorting abilities, boosting our capacity to produce RPF fromwaste plastics and other materials, increasing the productionof “Eco FoamTM,” a secondary material used in steelmaking,and enhancing the waste tile carpet recycling business.
Through these and other efforts, we will try to enhance ourrecycling functionality so that we can reduce cost prices andcreate more sales at the same time.
Furthermore, going forward we will endeavor torecycle waste glass working primarily with solar panels,
which are expected to generate a large volume of waste in
the 2030s and an area where recycling needs are expected
to grow, while also handling construction glass and usedautomobile glass. Through this, we hope to reduce theconsumption of natural resources, help decrease the CO2
emitted in manufacturing processes, and also help lower theamount of residual landfill waste.

Progress of integration synergy in FY03/2022• Made efforts to commercialize the recycling of solar panels andautomobile glass, where recycling needs are growing. Made progresson collaborations, including with companies in different businesses,
when it comes to glass recycling, solar panels, waste plastic
treatment and RPF.
• Facility improvements progressed, and we made more concrete
efforts to realize plans for advanced sorting sites.
• Added value to unused resources and/or turned them into products.
(RPF, steelmaking secondary materials, etc.)

Create synergy by integrating and reorganizing the value chain

Growth strategy theme 2
Promoting eco-friendly energy businesses
The government of Japan has declared that Japan will realize
carbon-neutrality by 2050. To achieve that, in addition to
woody biomass power generating businesses, businesses
that generate power from waste, such as those that turnwaste plastic into fuel, have been positioned as importantresource recycling-related businesses. TRE HOLDINGS is
engaged in unique renewable energy businesses that arerooted in the local community. Along with striving to expand
our woody biomass power generation business, we will also
focus on energy recovery from waste.
(1) Expand the woody biomass power generation business
The Group operates woody biomass power generation plants
in six cities, namely Hirakawa in Aomori, Hanamaki in Iwate,
Daisen in Akita, Tamura in Fukushima, Ichihara in Chiba andYokosuka in Kanagawa.
We use the knowledge and management expertise
gained in these areas to provide sustainable woody biomass
power generation rooted in the local community. In terms ofspecific plans, to help ensure the stable procurement of fuel,in addition to participating in regional forest management
planning (drawing up forest management plans), we will
cooperate with local forestry associations to build long-term
stable fuel collection structures. We also intend to expand
our areas of business into fields such as power retailingand the use of residual heat from power plants to cultivate
agricultural produce. We are establishing a fully integrated
business flow in the woody biomass power generation
business to cover everything from upstream to downstream.
In the medium to long term, we will also strengthen theforest management business to serve as the basis on which
to build relationships of trust with regional communities.
(2) Commercialize energy recovery from waste
The Group promotes material recycling through enhanced
waste sorting. We will also pursue thermal recycling going
forward for waste that is difficult to recycle for materials.
Specifically, we plan to own waste incineration facility withhigh efficiency power generation functionality.*
Additionally, in the medium to long term, we will also
consider commercialization in terms of the feasibility ofbusinesses such as those that make effective use of the CO2
emitted from burning waste, with potential collaborations
with other industries in mind.
*Thermal energy conversion that can issue non-fossil fuel certificates.

Results of activities in FY03/2022• Enhanced forest management business initiatives rooted in the local
community; promoted the use of residual heat in agriculture• Expanded the supply of renewable energy, including our in-house
power sources• Made progress on plans for a facility using waste thermal energy in
the Tokyo metropolitan area

Horizontal value chain integration
Customers

Vertical value chain integration

TAKEEI

REVER

Industrial waste

Used products

Sales and proposals
Collection and transportation
Intermediate treatment

Expansion of the Renewable Energy Business (including woody biomass power generation businesses)*
Tsugaru Biomass Power Generation Co., Ltd.
Tsugaru Eneveg Co., Ltd.
Hirakawa, Aomori

Forest area managed by
TAKEEI Forestry Co., Ltd.

Recycling
Unusedresources
130,000 tons

Metal

RPF

Waste
plastics

Wood
chips

Material
recycling

Chemicalrecycling

Planned drastic reduction
within 5 years
Unused resources
Thermalrecycling

TRE HOLDINGS CORPORATION Integrated report 2022

Final disposal(landﬁll)

FY03/2022

Takeei Denki Co., Ltd.
Minato-ku, Tokyo

Lower treatment costs and increase salesof recycled products by reducing unused
resources (shredder dust)
FY03/2023

Establish new resin sorting line

FY03/2024

Recycling
FY03/2026

Establish new dust sorting line

Hanamaki Biomass Power Generation Co., Ltd.
Hanamaki Biomass Chip Co., Ltd.
Hanamaki, Iwate

Daisen Biomass Power Generation Co., Ltd.
Daisen, Akita

Image of reduction in unused resources

Products shipped out

33• Integrate the processes from receiving valuables and waste to making recycling proposals by
sharing the information and expertise both companies have accumulated over many years, which
will translate into an improvement in service quality.
• Promote capital expenditure and technological development and link that to added value for
products produced and the recycling of unused resources (shredder dust) that are not fully usedby TRE HOLDINGS.
• Enhance the sorting process during intermediate treatment and increase production of RPF,
a high valued-added fuel made with waste plastic and other materials, and Eco FoamTM, asecondary material used in steelmaking processes.
• Introduce the latest research and technology and promote recycled plastics and otherresource recycling.

Takeei Green Recycling Co., Ltd.
Yokosuka Biomass Power Generation facility
Yokosuka, Kanagawa

Tamura Biomass Power Generation Co., Ltd.
Tamura, Fukushima

Green Power Ichihara Co., Ltd.
Ichihara, Chiba

Large woody biomass power generation
project in the Tokyo metropolitan area
*As of September 1, 2022

TRE HOLDINGS CORPORATION Integrated report 2022

34

Growth strategy

Growth strategy theme 3 Developing new technologies and building new business models
digital technology featuring robotized sorting processes
realized through the use of sensor (IoT) information and
AI technology.
In order to create an efficient recycling and carbonneutral society, and to bring about a world that gives all kindsof waste new life in the form of resources and reuses them,
the Group is working to build new business models such as
supplying recycled resources that visualize CO2 emissions
and other environmental values, and decarbonizing the value
chain through product life cycle design. When undertaking
such initiatives, we will link up with consumer goods
manufacturers, material manufacturers, local governments,
trading companies, plant manufacturers and other industries
to actively build schemes and thereby intensify cooperation
with other industries.
From now on, we need to shift from a linear economy
to a circular economy. The Group will explore a new era ofmanufacturing that considers the recycling of products into
resources after disposal, and we will create new businessmodels through analysis and verification carried out incooperation with other industries.

Developing new technologies such as waste plastic recycling
technology, CO2 emission reduction technology and wastematerial power generation technology will be the major
challenge to solving global environmental issues including
climate change, waste plastic and energy resources.
In these circumstances, TRE HOLDINGS will help
to bring about an efficient recycling society by striving toincrease the sophistication of its disassembling, crushing andsorting technologies and by producing recycled resourcesin the quality and quantity desired by customers, even forcomposite materials that were previously difficult to sort. We
will also enhance the development of technologies related to
the removal and component adjustment of repellents, which
are processes needed to increase the efficiency of waste
power generation, as well as technologies that increase
the efficiency of the recovery of rare metals. Through these
efforts we hope to realize even greater gains and results
than before. Furthermore, when handling a variety of usedproducts, we will pursue safety while aiming for the stablesupply of a large volume of high-quality recycled resources
through the use of automatic sorting that employs the latest

New initiatives to cooperate with other industries
Rawmaterials

Supply power
ConsumeConsumer goods
manufacturers

Material
manufacturers

Collaboration with consumer
goods manufacturers

Collaboration withmaterial manufacturers

Sell

Collaboration withlocal governments
Solve problems
arising
Collaborate on
ensuring sustainability
in waste treatment

Design, propose, andoperate waste value chain• Advanced use of information• Information visualization• Automation ofsorting process• Robotization ofvarious processes

Handle disaster
waste disposal needs

Generalwaste
Industrial
waste

Collect &Transport

Intermediate
processing
Recycling

Incorporate subscription
and other business models

Development of advanced
sorting technology
Formulate environmental
impact assessment
Establish sales channels
for recycled products

MetalsMaterial recycling

Waste plastics

Chemical recycling

Wood

Thermal recycling

Debris and others

Final disposal (landfill)• Optimization of logistics systems

35

TRE HOLDINGS CORPORATION Integrated report 2022

TopicsEnhancing glass recycling by making JW GLASS RECYCLE CO., LTD. a subsidiary
In May 2022, JW GLASS RECYCLE CO., LTD. became asubsidiary of TAKEEI CORPORATION.
Since its establishment in 1951 JW GLASS RECYCLE
has been involved in a resource recycling business where
it collects, crushes and sorts bottles and plate glass. The
company sells the resulting cullet (crushed pieces of glass)to bottle, plate glass and glass wool manufacturers as raw
material for recycled glass. Its main business locations
are in Tokyo, Hokkaido, Gunma and Shizuoka. The pieces ofglass that become recycling material are generated fromhouseholds and collected by glass manufacturing andprocessing companies and local authorities, but even now
many of them end up as landfill at final landfill sites. However,as glass and glass wool manufacturers continue efforts towards
carbon neutrality, there is expected to be stable demand forgood quality cullet that helps to reduce CO2 emissions in the
manufacturing process when used as raw material.
As a member of TRE HOLDINGS, JW GLASS RECYCLE
will supply high quality cullet and actively engage inrecycling laminated glass, glass from end-of-life vehicles
and solar panels, where demand is expected to growmassively in future.

A study aimed at a business partnership with Sumitomo Chemical Co., Ltd. in preparation
for the shift to a circular economy
Since June 2021, REVER HOLDINGS CORPORATION and
Sumitomo Chemical Co., Ltd. have been carrying out a study
aimed at a business partnership with the intent of helping toresolve societal issues by quickly establishing a sustainablecircular economy through a business that recycles thematerials and chemicals in plastic waste. In the study,
Sumitomo Chemical Co., Ltd. is combining its accumulated
plastic manufacturing technology with TRE HOLDINGS’
waste recycling expertise in order to recycle collected plastic
waste as products. As of June 2022, we have carried out
investigations and analyses into the potential for material

recycling using waste plastic treated at TRE HOLDINGS’crushing and sorting plants. In the process, we also conductedan environmental impact evaluation of recycled plastics frommanufacture to recycling. The results made it clear in numbers
that, compared to conventional products manufactured fromvirgin raw materials, recycled plastic products using waste
plastic are superior in a life cycle assessment (LCA) from theviewpoint of reducing CO2 emissions. Going forward, we will
increase the sophistication of our sorting, refine our data byusing a new sorting line, and proceed with even more detailed
studies aimed at a business partnership.

Installation of a new resin sorting line at REVER CORPORATION’s Nasu plant to augment its
plastic recycling capabilities
In line with the enactment of the Act on Promotion of
Resource Circulation for Plastics in Japan in 2021, thedemands from consumer goods manufacturers andmaterial manufacturers concerning plastic recycling havebecome more sophisticated and more diverse. Under thesecircumstances, in August 2022, REVER CORPORATION put a
new line into operation at the Nasu plant in Tochigi, to upgradeand enhance the functions of its resin sorting lines. Not only
will the new line increase the purity of the polypropylene(PP) and polyethylene (PE) plastics recovered but it will also
boost the volume of resin recovered from 600 tons a year to

1,800 tons a year. In addition to the increase in capacity, it isexpected to recover in 420 tons a year in terms of materials
for RPF and other alternative fuels.
In the future, demand for plastic for a variety ofuses such as material recycling, chemical recycling andalternative fuels is expected to rise, and so we will actively
consider capital expenditures that allow us to sort all kindsof materials effectively. By building systems that can supply
large volumes of recycled plastic while maintaining accuracy,
we aim to reduce CO2 emissions while recycling plastic
products which are expected to increase in future.

TRE HOLDINGS CORPORATION Integrated report 2022

36

Response to climate change (information disclosure based on TCFD recommendations)

We regard climate change as an important management issue andunderstand and analyze the medium- to long-term risks
and opportunities
Basic approach

GovernanceIndicators and targets

Climate change is one of the most pressing issues confronting
global society at the moment. It is an issue with a great dealof urgency, as extreme weather events are occurring andintensifying all around the world even now, with serious
effects on the natural environment and human livelihoods.
The Paris Agreement, an international agreement on climatechange countermeasures, has established the following twolong-term goals for all nations.
• Limit the global average temperature increase in thiscentury to 2 degrees Celsius compared to pre-Industrial
Revolution times while pursuing efforts to limit the increase
to 1.5 degrees• To achieve that, worldwide greenhouse gas emissions must
past their peak and decline as soon as possible, and in thesecond half of the 21st century there must be a balance
between the emission and the absorption (through forests,
for example) of greenhouse gases.

In June 2022, the Group established the CSR and
Sustainability Promotion Committee as an organization to set
targets and plan, announce, execute and evaluate strategies
concerning the Group’s climate change countermeasures andother initiatives aimed at solving social issues.
The CSR and Sustainability Promotion Committee
is chaired by the President and COO. As the body fordeliberating sustainability-related initiatives, its functions
include determining relevant policies and managing
the progress of targets. It meets at least twice a year,
in principle, and reports to the Board of Directors after
holding discussions and obtaining a consensus at Groupmanagement meetings. The Board of Directors supervises
the progress of targets and policies.

We have set practicing sustainability management as a key
strategy in the Group’s medium-term management plan.
As an initiative under that strategy, we plan to make all theenergy used in-house carbon-neutral within five years ofour business integration, i.e. by 2026. We intend to do thisby promoting energy-saving activities while also efficiently
procuring non-fossil fuel certificates and CO2 credits. We
also began and announced the calculation of our scope 3 CO2emissions in 2022.

TRE HOLDINGS is highly aware of the worsening effects
of climate change and the destruction of the environment
on a global level as well as of the need to develop
countermeasures. As a comprehensive environmental
management company, we will contribute to the creation ofan efficient recycling, carbon-neutral society through ourwaste treatment and recycling-related businesses and ourrenewable energy business.
Starting in 2022, the Group has begun to disclose
information according to the recommendations of the Task
Force on Climate-Related Financial Disclosures (TCFD)
established by the Financial Stability Board (FSB). We willcontinue to analyze issues and hold discussions to gradually
expand the disclosure of information. Additionally, in June
2022, along with announcing our endorsement of the TCFD
recommendations, we also joined the TCFD Consortium, aforum for companies and financial institutions endorsing the
TCFD recommendations to hold discussions.

Strategy
The Group seeks to understand the risks and opportunities
posed to business by the migration risks and physical risksof climate change, and to reflect that understanding inbusiness strategies and in the planning of climate change
countermeasures. In 2022, we began an analysis of the
impact of climate change risks. As a result, we realized thatfor the Group, which is engaged in waste treatment, recycling
and renewable energy businesses, the risks posed by climatechange to business continuity are significantly outweighedby the business opportunities, which are linked to future
growth opportunities.
In light of the fact that the Group’s businesses
contribute to conserving the global environment, including
climate change countermeasures, we have established thecreation of an efficient recycling, carbon-neutral society asmaterial issues to address, and we will focus on reducing therisks of climate change while seizing business opportunities.

Broad Intermediate
category category

TRE HOLDINGS CORPORATION Integrated report 2022

Sub category

Indicators

Stricterregulations
such as carbon
Revenuetaxes andExpendituregreenhousegas emissions
quotasPower used
at all facilities

ReduceCO2emissions

ReduceCO2emissions

Plants andfacilities
Scope 2

Power

Offices, other2021
1st year of integration

ImpactRisks

Risk
assessment

CO2 emissions

Power

Step-by-step
reductions

2026
5 years later

Opportunity
assessment• Increased costs due to burdenof new taxes (carbon taxes) if we
do not conserve energy at our
workplaces and in our logistics

Minor• A rise in the needs of customers
and social demands for lower
carbon throughout the supply chain,contributing to reduced Scope 3 CO2from customers as workplaces use
less carbon, leading to increased
differentiation and competitiveness

Major• Increased demand for renewable energy
Stricterenvironmental Revenue
laws andExpenditure
regulations

Migrationrisks

ImpactOpportunities• Expansion in the steel recycling
business due to a global increase indemand for electric furnace steel

Policies andregulations• Increased capital investment
costs and external (secondary)processing costs in order tocomply with laws and regulations• Decline in the company’s credibility
if it does not comply appropriately
with requests for disclosure

Minor• Rapid increase in demand for recycledresources and recycling from local
governments andvarious manufacturers

Major

Minor

• Clear display of superiority in theindustry through information disclosure

Minor

Stricterinformation
disclosure
obligations

Expenditure

MarketSharp
increases
in resource
prices

Revenue• Increased costs as a result of a
sharp rise in energy costs andthe prices of materials andraw materials

Medium• Greater demand for reclaimed andrecycled goods

MediumAcuteIntensificationand frequent
occurrenceof natural
disasters

Revenue
Expenditure
Assets• Stoppage of operations due
to damage to workplaces or
disruption of supply chain.

Major• Increased disaster-related waste
treatment costs following a natural
disaster such as a major typhoon

Minor

Physicalrisks
Chronic

37

Power usedin main plants

Assumed impact on TRE HOLDINGS’ business (risks and opportunities)

Risk management
In 2022, the CSR and Sustainability Promotion Committee
discussed the impact of the risks and opportunities of climatechange on the Group’s business and how to manage thoserisks going forward, and the results are disclosed in thisintegrated report.

CO2 emission
reductions visualized• Increased costs due to anincrease in indirect operations

Rise in averagetemperature,
Revenuefrequent floods Expenditureand storm
Assetssurges• Deterioration of the working
environment and reduced laborproductivity due to heat stress• Storm surge damage toworkplaces and plants locatedin coastal areas

Major• Increased opportunities for worn out
infrastructure repair work and waste
treatment businesses as a result of
disaster prevention, disaster mitigationand national structural reinforcement

Minor• Increased opportunities for waste
treatment businesses accompanying
the movement of workplaces awayfrom regions expected to face disasters

TRE HOLDINGS CORPORATION Integrated report 2022

38

Growth strategy background

Business activities accelerating the evolution and growth ofan efficient recycling, carbon-neutral society

Part

3

Business
Strategy by
Segment

Creating Environmental Value through Business

TRE HOLDINGS CORPORATION aims to evolve and grow as
a comprehensive environmental management company
through our business activities. The TRE Group addresses theglobal environmental issues of climate change, energy, andresources, and supports a circular economy.
Our focus is on the three main business areas of waste
treatment and recycling, resource recycling, and renewableenergy (woody biomass power generation).
We also operate an environmental engineeringbusiness that designs and constructs environmental
equipment and plants, and develops, manufactures, andsells special vehicles. Additionally, we run an environmental
consulting business that provides assessment services
including measurement, investigation, and analysis.
The integration of such business activities willcontribute to the creation of an efficient recycling, carbonneutral society.
In parallel with the shift to a circular economy, we
are investing in facilities and developing technologies in
our waste treatment and recycling and resource recycling
businesses in order to provide a stable supply of highquality recycled materials to meet the needs of our business
partners. We are also engaging in M&A and promoting

business alliances to more rapidly introduce advanced
technologies and expertise within the Group of companies.
Along with our priority on waste disposal, we arefocusing on collaboration and alliances with our partners
to be able to work together for environmentally conscious
design and to achieve an efficient recycling society. We
contribute to the creation of a carbon neutral society
through our efforts to reduce CO2 emissions (Scope 3)
associated with waste treatment and recycling in the supply
chain of industries.
Generation and sales of woody biomass electricity
in the Group’s renewable energy business contributes tothe realization of a carbon-neutral society. In addition to
the utilization of unused forest resources, constructionwaste, and waste plastic-derived RPF as a fuel for woody
biomass power generation, we are working to absorb andfix CO2 and revitalize the local forest industry by conserving
forest resources. This will, in turn, lead to the creation ofenvironmental and social value.
In this way, by organically integrating several businessfields, the Group, as a comprehensive environmental
management company, aims to create new environmental
value and grow sustainably.

Comprehensive environmental management company- Leading the environmental industry

Contributing to an efficient
recycling society

Contributing to a carbon-neutral society

Waste Treatment andRecycling BusinessResource
Recycling Business

Renewable
Energy Business

39

TRE HOLDINGS CORPORATION Integrated report 2022

Other
Environmental Engineering Business
Environmental Consulting Business

TRE HOLDINGS CORPORATION Integrated report 2022

40

Waste Treatment and Recycling Business / Resource Recycling BusinessBusiness model

Establishing a process for receiving, properly processing, andrecycling various types of waste and ferrous scrap

TRE Group business areas
Residue*

TRE landfill(final disposal) sites*Hard-to-recycle wastes(Other companies’ final landfill sites)

The waste treatment and recycling business involves
the collection, transport, and receiving of scrap iron andwaste from construction and demolition sites, automobile
dismantlers, local governments, etc. at the recycling plant.
We aim to enhance the recycling ratio by sorting thereceived waste, removing extraneous material, extracting
reusable ferrous and non-ferrous metals, plastics, andother materials, and applying processes of crushing andcompression. Even materials not suitable for reuse canbe converted to RPF solid fuel for woody biomass power
generation plants, thus reducing CO2 emissions.
Ferrous scrap, however, is processed (cut, crushed,etc.) according to the quality and size requirements of client
manufacturers. The suitable recycled materials are thentransformed to new iron and steel material.
Such waste treatment and recycling serves to prevent
resource depletion and contributes to the circular economy,
preserving and maintaining product and resource value
through circulation rather than in the linear economy ofmass-production/consumption/disposal.
Non-recyclable materials such as residues from theprocessing of waste and ferrous scrap are properly disposedof in final landfill sites, or incinerated.

Intermediate treatment facilities

RPF manufacturing plants

RPF raw material

Wood chips (construction waste)

Disposal site used as golf course andsolar power generation facility

Final disposal amount

Approx.

Recycled resources

100,000 tons/year
RPF

Recycled resources

Collection &transportation

Intermediate treatment/
recycling facilities

Approx. 1.2 million tons/year

34

Final Landfill Sites

5 (including 2 underdevelopment)

Number of collection andtransport vehicles

462

Material manufacturers

Number of large crushers

Renewable Energy Business

7

Woody biomass power
generation plants

Resources received
Waste

Approx. 1.3 million tons/year

Material

Construction waste,
ferrous and non-ferrous
scrap, end-of-life vehicles,
home appliance waste,small home appliances

Consumers/Consumer society
Consumer goods manufacturers

Product

Building

Construction sites

Golf course (converted Okido final landfill site)

41

TRE HOLDINGS CORPORATION Integrated report 2022

Solar power generation facility (at Narita landfill (final disposal) site)

TRE HOLDINGS CORPORATION Integrated report 2022

42

Waste Treatment and Recycling Business / Resource Recycling Business
Case study 1 Recycling unused resources

Developing processing technology and treatment facilities forunused resource recycling

In order to achieve an efficient recycling society, it is essential
to develop processing technology and treatment facilities torecycle unused resources that in the past had been landfilled
for being difficult to recycle.
TRE HOLDINGS works to recycle unused resources
through activities such as proactive capital expenditure andtreatment process improvement. For example, we are bolstering
RPF (Refuse derived paper and plastics densified fuel) production

by utilizing waste plastics and other materials that can be used
for power generation. We are also pursuing sophistication of
our recycling technology with enhanced sorting of shredder
dust, an unused resource. Another area of focus is increased
production of Eco-FoamTM, a secondary material that uses
recycled dust and other materials as a foaming inhibitorin the steelmaking process. We are also engaging in theheretofore difficult recycling of waste tile carpet.

RPF

Topics
Improving shredder dust sorting and increasing RPF production
In the processing of industrial waste, TRE HOLDINGS
promotes conversion of waste into fuel by enhancing thesorting of waste plastics and other materials used as raw
materials for RPF.
We also give attention to sorting after shredding.
A new sorting line installed in August 2022 at REVER
CORPORATION’s plant in Nasu made it possible to sort theplastic, metals, and other waste materials from shredder dust
disposed of in landfills. Using these as raw material for RPF
contributes to in-house fuel production for power generation
and also to reducing landfill waste.
This endeavor also contributes to increased RPF
production at TAKEEI CORPORATION and leads tointegration synergies.

TRE Group
Combustible
materials

Increasing Eco-FoamTM compressors for heightened production
Powergeneration plant

Waste
plastic
RPF production equipment

RPF (Refuse derived paper
and plastics densified fuel)Effective use of solid fuel for power
generation (RPF)

TAKEEI CORPORATION’s Tokyo Recycling Center invested
in facilities to increase production and productivity of
Eco-FoamTM, a secondary material used in steelmaking. In
September 2020, a production line was added, doubling fromone line to two. Compressors were also upgraded, reducing
maintenance time and improving productivity.

Eco-FoamTM
Eco-FoamTM compressor

TRE Group
Combustible
materials

Increasing waste tile carpet recycling
Steel
manufacturer

Dust
Eco-FoamTM compressor

Eco-FoamTM secondary material
for steelmaking processes

Use as foaming inhibitor insteelmaking processes

Eco-Flake
TRE Group

Waste tile
carpetTile carpet
manufacturer

Tile carpets are used in large quantities in office buildings.
They have a top layer of fiber backed by a polyvinyl chloride(PVC) layer. Because the two layers are strongly glued
together, separating them and crushing the tile carpets has
been difficult. Most were simply disposed of in landfills.
In 2016, TAKEEI CORPORATION installed dedicatedequipment at the Tokyo Recycle Center’s No. 2 factory torecycle waste tile carpet. In 2020, the recycling equipment
was upgraded to include a crusher that enabled removal of
the fibers, a process that had previously been difficult to do.
This resulted in efficient production of high-quality recycled
raw material. The fiber portion extracted in the process canbe used as recycled material. The PVC portion is sold to tile
carpet manufacturers as Eco-Flake, a raw material.

Eco-Flake
Waste tile carpet shredding
equipment

43

TRE HOLDINGS CORPORATION Integrated report 2022

Eco-Flake

Tile carpet transformation

TRE HOLDINGS CORPORATION Integrated report 2022

44

Waste Treatment and Recycling Business / Resource Recycling Business
Case study 2 Environment conservation through metal recycling

Ferrous scrap recycling and CO2 emission reduction
Steel production shifts from blast furnaces to electric furnaces

The Paris Agreement was agreed upon at the 2015 Paris COP(Conference of the Parties) to the United Nations Framework
Convention on Climate Change, which was held to discussinternational agreements related to greenhouse gas reduction.
In reference to the agreement, the Japanese
government announced a policy to reduce greenhouse gas
emissions to net zero by 2050 and the industrial sector is
implementing initiatives to achieve this.
Even the energy-intensive steel industry, for example,
is progressing in reduction of greenhouse gas emissions.
The steel industry CO2 emissions account for more than 10%
of Japan’s total CO2 emissions, but the industry has to datebeen making efforts in various kinds of action to reduce CO2
emissions. Notably, there is a trend in steelmaking to shift
from blast furnaces to electric furnaces.
Blast furnace steelmaking uses natural resources
such as iron ore and coke and emits approximately 2 tonsof CO2 for every one ton of steel produced. Electric furnacesteelmaking, on the other hand, uses ferrous scrap as theraw material and emits approximately 0.5 tons of CO2 per
ton of steel produced. This means that CO2 emissions can be
reduced by about one-fourth by shifting from blast furnaces
to electric furnaces.

Iron lifecycle and recycling
Magnetic sorting

Blast furnace produced steel using natural resources
such as iron ore and coke is transported to manufacturers
who transform it into automobiles, home appliances,machinery and equipment, building materials, etc. that
support our industrial society and our lives. After suchproducts have outlived their useful life, they are transported
to recycling plants and waste treatment facilities. The
discarded materials might include plastics, non-ferrous
metals such as copper and stainless steel, fiber materials,
and glass—some of which are difficult to separate andsort. Iron materials, however, no matter how small, can berecovered by using magnetic force in the sorting process.
The collected iron is then processed, treated, and shipped
to Japanese or overseas steelworks to re-emerge, mainly
through the electric furnace steelmaking process, as new steel.
Iron can be recycled many times because theproperties of iron make it easy to sort and because quality
deterioration during the manufacturing process is negligible.
Further, the collection and recycling of manufactured ironmakes it possible to prevent depletion of limited natural
resources such as iron ore and coke, and at the same time to
reduce CO2 emissions. Given this environmental value creation,
expectations are high for effective uses of ferrous scrap.

CO2 emissions from Japan’s steel sector and flow of steel recycling

New steel

Steel Product
Recycling Rate

93.0%

Scrap

Products

Source: Japan Iron and Steel Federation

Source: Tokyo Steel Co., Ltd.

45

TRE HOLDINGS CORPORATION Integrated report 2022

Topics
Metal recycling through automobile and home appliance recycling
Our Group’s automobile recycling is based on the 2005 Law
for the Recycling of End-of-Life Vehicles (The Automobile
Recycling Law). In addition to selling disassembled reusable
parts to repair markets in Japan and overseas we are also
engaged in general sales at retail outlets and online. We
exhaustively recover and recycle reusable items such as tires,
batteries, and engines. The remaining automobile bodies
are crushed with a shredder and sorted with items that canbe reused and shipped to ferrous and non-ferrous metal
manufacturers. By transforming them into new resources
such as construction steel material and secondary alloy
metals, we are contributing to an efficient recycling society.
For home appliance recycling, the Law for the
Recycling of Specified Kinds of Home Appliances (HomeAppliance Recycling Law) requires that four items—air
conditioners, TVs, refrigerators, and washing machines—becollected and processed for recycling by authorized
operators. Our Group conducted joint recycling technology

research with major home appliance manufacturers before
the 2001 law was in place and indeed contributed to the
law’s enactment. Relationships of trust we cultivated withthe major home appliance manufactures continued after thelaw came into effect and we are entrusted with recycling 1.4
million units of the four specified appliances annually. This
amounts to around 10% of the total generated in Japan. Under
the law, home appliances are collected from homes andoffices and transported to home appliance recycling plants
where recovery of fluorocarbons is carried out. Plastics andcircuit boards are disassembled and sorted by hand, while
ferrous and non-ferrous metals are recovered with crushers
and sorting machines to be reused as resources. For 2021,
ferrous metal accounted for around half of the recycling
composition ratio by material for refrigerators, washingmachines, and LCD/plasma TVs.**Source: H ome Appliance Recycling Annual Report, Association for Home
Appliances, 2021.

Metal recycling business in Southeast Asia: HIDAKA SUZUTOKU (Thailand) Co., Ltd.
HIDAKA SUZUTOKU (Thailand) Co., Ltd. is a joint venture between
Hidaka Yookoo Enterprises Co., Ltd, which has been operatinga metal recycling business in Thailand for over 90 years, and
REVER HOLDINGS CORPORATION. The joint venture has, since its
establishment in 2014, been engaged in comprehensive resource
recycling, particularly metals, in Thailand and the ASEAN region.
The company mainly purchases paid waste (ferrous and nonferrous metals) for corporate partners and provides collection
services (issuing destruction certificates) for disassemblingproduction equipment and defective products. Further, after
sorting and processing collected paid waste in-house according
to the standards of the receiving company, the company ships
them as raw materials for steelmaking and reuse as resources.
HIDAKA SUZUTOKU is strengthening sorting andprocessing functions in order to improve the recycling
ratio. Component analysis is one way to measure this. The
introduction of a high-performance component analyzer has
resulted in higher-grade scrap metal sorting and processing.
Providing products to meet the needs of our partners has

enabled us to improve our recycling ratio.
In a recycling business that converts waste into
resources, an important measure of success in creating
an efficient recycling society is an improved recycling
ratio. HIDAKA SUZUTOKU is committed to contributing to
the resolution of a range of social, environmental, andeconomic issues in accordance with the SDGs advocated by
the United Nations.

Scrap metal conveyed into a shredder

TRE HOLDINGS CORPORATION Integrated report 2022

46

Waste Treatment and Recycling Business / Resource Recycling Business
Case study 3 Environmental contributions through RPF

Promoting the use of RPF for the creation of a carbon-neutral society
and effective use of resources

Refuse derived paper and plastics densified fuel (RPF) issolid fuel made mainly from waste paper and plastic. Madefrom plastic waste as raw material, RPF has a heating
value comparable to coal and coke, and is used as analternative to fossil fuels in the paper, cement, and steel
manufacturing industries.
By using recycled paper and plastic waste, that are
difficult to recycle, RPF offers the advantages of reducing theconsumption of fossil fuels and contributing to the reductionof landfill waste.
TRE HOLDINGS CORPORATION is making efforts
for even more effective use of waste by strengthening thesorting of plastic waste and other waste materials that canbe used as RPF raw materials. In addition, some of the woody
biomass power generation plants operated by our Group use
RPF as part of their fuel. In this way, thermal recycling, fromwaste treatment to RPF production and use as fuel for power
generation, is being practiced within the Group.
We will continue to promote the use of RPF to reachthe goal of a carbon-neutral society and to contribute to the
reduction of use of limited resources such as fossil fuels.

RPF Features• Solid and highly dense, ease of handling, transport and storage• Heating value easily adjusted by changing the paper/plastic ratio• Low risk of fire and explosion with use of paper and plastic waste• Lower cost than coal; less ash than coal after combustion, reducing
ash disposal costs ased on RPF Features (Benefits), Japan RPF
Source: b
Industry Association.

TopicsResearch and development of recycled crushed stone processed from biomass incinerated ash
Carbon recycling technology that captures and uses CO2
as a resource is gaining attention as a way to reduce CO2
emissions and achieve carbon neutrality.
Tohoku Koueki Recycling Technology Co., Ltd. is
studying carbon dioxide capture, utilization and storage(CCUS) technology to absorb CO2 in biomass incineration ash
from woody biomass power generation plants and recycled
crushed stone (RC) processed from ash. We are planningto carry out tests and verification in collaboration with
Yamagata University and Nihon University under an industryacademia partnership.

Joint meeting with Yamagata University and Nihon University

Construction site electricity fueled by construction waste
CO2 emissions: Coal and RPF compared

At Takeei Green Recycling Co., Ltd.’s Yokosuka Biomass
Power Generation Facility, wood chips made from logs,
branches, offcuts from forest thinning, etc. generated by local
governments, landscaping, construction, and other industries
on the outskirts of the Tokyo metropolitan area are used asfuel for power generation.

RPF used as an alternative fuel to coal reduces CO2 emissions by 2.062t per ton of RPF.
When using coal as fuel in a boiler and incinerating plastic waste
Total: 3.437t-CO2
Coal use (combustion)
2.277t-CO2

Plastic waste incineration
1.099t-CO2

Takeei Green Recycling Co. Ltd.
Yokosuka Biomass Power Generation Facility

Coal procurement
0.060t-CO2

Intermediate treatment facility

When using RPF as an alternative to coal
Total: 1.375t-CO2
RPF use (combustion)
1.099t-CO2
RPF production
0.276t-CO2

The power plant also processes construction sitewaste wood into wood chips. Along with using these as fuelfor woody biomass power generation plants, we are alsoutilizing the electricity generated in the plants as temporary
power at construction sites to implement resource recycling.

Construction site

Wood waste fromconstruction sites

2.062t-CO reduction per 1t RPF
2

Plastic waste (paper waste = 0)

Crushing waste wood into wood chips

Takeei Denki Co., Ltd.
Power retailingcompany*Source: B ased on New Energy and Industrial Technology Development Organization (NEDO),“Commercialization Reports : Development of a new fuel “RPF” with low CO2 emissions and at a low cost”

Used as electricity atconstruction sites

47

TRE HOLDINGS CORPORATION Integrated report 2022

Woody biomass power generation facility

Power generation using wood chips as fuel.

TRE HOLDINGS CORPORATION Integrated report 2022

48

Waste Treatment and Recycling Business / Resource Recycling Business
2022 highlights

Meeting the needs of the times with advanced waste treatment andrecycling capabilities

New dedicated electronic waste processing line at Higashi Matsuyama Plant,
REVER CORPORATIONREVER CORPORATION’s Higashi Matsuyama Plant provides
one-stop processing from transport to breakdown for
disposal of products such as clothing and shoes from apparelcompanies, or collection and shredding of sealed confidential
document packages.
In April 2022, we expanded and put into operation a
new plant specialized in processing electronic scrap such as
circuit boards recovered from urban mining and units fromhome appliance and telecommunication devices processedat each of TRE HOLDINGS bases. After the collected boards
and other units are crushed in a four-shaft crusher sorting,they are sorted by particle size, magnetic, and eddy current
and recycled into ferrous metal, aluminum, gold, silver, andcopper slag, and other materials. The electronic scrap linewith a processing capacity of 700 tons a month is one of thelargest in Japan.
Furthermore, solar panels (100kw generating capacity)
have been installed on the roof of the new plant, providing
26% of the electricity required to run the facility throughrenewable energy, and promoting our carbon-neutral
initiatives. In February 2022, the Higashi Matsuyama Plant
became the second in our Group to achieve ISO/IEC27001(factory category) certification.

49

TRE HOLDINGS CORPORATION Integrated report 2022

REVER CORPORATION’s Kumagaya Plant disassembles officeautomation (OA) equipment and telecommunication devices,
etc. by hand to meet the needs of our partners for reuse andmaterial recycling. We also provide hard drive data (HDD)
erasure services.
For security, the plant interior and exterior is monitored
24 hours a day, 365 days a year. Measures such as sensitive
area access logs management and employee pocketlesswork uniforms are also in place for complete security.
In 2018, the Kumagaya Plant acquired ISO 27001(factory category) certification, an international standard
for information security management systems based on
an awareness of growing dangers of corporate information
leakage. The Kumagaya Plant also received third-party
evaluations on its information security. It is the only
group member to acquire the ISO 45001 certification foroccupational health and safety management systems.

Disassembly by hand

New dedicated electronic waste processing line

Solar panel recycling business initiated at Shinshu Takeei Co., Ltd.
Shinshu Takeei, Co., Ltd. launched a solar panel recycling
business in January 2022.
With the start of the feed-in tariff (FIT) system forrenewable energy, solar power generation has rapidly
expanded. It is expected that there will be a significant
increase in solar panel disposal as solar panels are replaced
to improve power generation efficiency or because they havereached the end of their lifespans. For this reason, the proper
disposal and recycling of solar panels has become a point ofinterest. There is also a need for appropriate treatment andrecycling in response to increased natural disasters in recent
years that have made solar panels unusable.
Shinshu Takeei introduced a dedicated solar panel
processing facility to address these issues and is promoting
effective use of resources by removing the unusable
aluminum solar panel frames, crushing and sorting the glass,and recycling these into metal and glass raw materials.

REVER CORPORATION Kumagaya Plant acquires ISO 27001 (factory category) andISO 45001 certification

TAKEEI CORPORATION is also pursuing a plan for solar
panel recycling operations in Fukushima.

Crushing and separating solar panel glass

EQUAL ZERO Inc. extracts phosphorus from waste water to produce fertilizer
EQUAL ZERO Inc. has established a technology to extract
metals from waste liquids and has been extracting andrecycling useful metals such as nickel and copper thatconventionally had been landfilled with sludge.
With this technology, the company has successfully
extracted phosphorus from waste liquid and commercialized
it as fertilizer. The 35 calcium phosphate acid*1 in thisfertilizer is a citrate-soluble phosphoric acid,*2 easily
absorbed by plant roots and known to improve root growthand make plants grow strong. The company began shipping
the product in July 2021 and is able to produce 100 to 150
tons annually.
Japan is not capable of generating rock phosphate andrelies on imports for all its domestic needs. The initiative torecover resources from waste liquids, therefore, is expected
to both reduce the use of limited resources through recycling
and contribute to an efficient recycling society.

*1 3
 5 calcium phosphate acid is a commercial fertilizer containing 35%
citrate-soluble phosphoric acid.
*2 C itrate-soluble phosphoric acid is fertilizer soluble in citric acid solution. It
dissolves and is absorbed slowly.

Fertilizer production from phosphorus extracted from waste liquids

TRE HOLDINGS CORPORATION Integrated report 2022

50

Renewable Energy BusinessBusiness model

Integrated forest model and urban modelTwo types of local community-based woody biomass
power generation

TRE’s Renewable Energy Business is involved in woody
biomass power generation and forest management.
Our woody biomass power generation business has
two business models.
One is our integrated forest model that generates
fuel with offcuts from forest thinning and other materials
from local forests in the vicinity of our woody biomass
power generation plants in Hirakawa, Aomori; Hanamaki,
Iwate; and Tamura, Fukushima. Electricity is supplied to the
local community with fuel generated from unused forest
resources, such as offcuts from forest thinning, collectedfrom within a 50km radius of the woody biomass generation
power plant region (Iwate, Miyagi and Fukushima).
Further, the residual heat generated by the power plant

TRE Group Business Areas

is used to grow sweet tomatoes (high sugar content tomatoes)
and wood ear mushrooms for the local community.
The other model is the urban model that generates
power with wood waste and other materials from construction
sites and pruned branches from roadside trees in thevicinity of the woody biomass power generation plants in
Yokosuka, Kanagawa and Ichihara, Chiba. In addition, GreenPower Ichihara Co., Ltd. that operates woody biomass power
generation plant uses RPF produced by TAKEEI CORPORATION
from paper and waste plastic as raw materials for fuel.
Through these two types of community-based woody
biomass power generation businesses, The TRE Group iscontributing to the realization of an efficient recycling society
and a carbon-neutral society.

Integrated forest model

Woodlandcultivation

O2

Approx.

Forest property area

Conservation
Group-owned
forests

Forest thinning360 ha600,000 tons/year

Wood chips
manufacturing plants

sweet tomatoes/
wood ear mushrooms

Residual heat

Woody biomass power
generation plants

Power

Forests in Japan

Power retailing companies

Woody biomass power generation

Approx.
Absorption

Urban model

CO2

Woody biomass power generation plants

6 locations
Woody biomass power
generation plants

Resources received(construction wastematerials, etc.)

Local
communities

Wood chips(constructionwaste)

Roadside trees

Power

600,000 MWh/year

Intermediate
processing facilities

Construction sites

Localcommunities

Wood chips

Offcuts from forest thinning andunderused forest resources

Afforestation

Agricultural product cultivation

Wood chips input

RPF raw materials

Power

Local
communities

Power retailingcompanies
Power

RPF production plant
RPF

RPF input

Approx.

40,000 tons/year

Power

51

TRE HOLDINGS CORPORATION Integrated report 2022

TRE HOLDINGS CORPORATION Integrated report 2022

52

Renewable Energy Business
Case study Hanamaki woody biomass power generation project

Integrated forest model establishing new path in renewableenergy industry

Woody biomass power generation business launched in Tohoku
TRE HOLDINGS CORPORATION is currently operating woody
biomass power generation projects in four Tohoku areas:
Hirakawa, Aomori; Hanamaki, Iwate; Daisen, Akita; Tamura
Fukushima. The project features “local production for local
consumption” with fuel generated by wood collected within a
50 km radius of a power plant being used to supply electricity
to the local communities.
Biomass power generation activities in Hanamaki
began in February 2017 when Hanamaki Biomass Power
Generation Co., Ltd. started power transmission. Iwate isJapan’s largest producer of Japanese red pine. Hanamaki islocated nearly in the geographic center of this region that has
a major forestry industry.
After the 2011 Great East Japan Earthquake, our Group
engaged in the treatment and recycling of Tohoku region(Iwate, Miyagi, Fukushima) waste from the disaster. Even
after the project was completed, we continued to consult withlocal governments and organizations on ways to contribute tofurther Tohoku development.
We recognized the forest industry had potential for

growth and that there was an essential need for new businessinitiatives to maintain and revitalize the forest industry andcreate jobs. We began to consider developing the business modelof the Tsugaru Biomass Power Generation Co., Ltd., our firstwoody biomass power generation plant in the Tohoku region.
Proper tree thinning is essential to forest conservationand disaster mitigation. It is therefore important to havesupportive relations with existing forestry enterprises andto meet new demands beyond a certain set scale. Woody
biomass power generation is expected to create new
demand for offcuts from forest thinning as a fuel source inthe region. At the same time, this will lead to stability andrevitalization in the forest industry and also enhance disasterprevention possibilities.
It was in this context that the TRE Group establishedthe Hanamaki Biomass Power Generation Co., Ltd. andstarted woody biomass power generation business with thesupport of Iwate Prefecture and surrounding municipalities,
as well as lumber companies and local foresters that supply
raw materials.

The issue of stable supply of wood for fuelStable procurement of wood as fuel for woody biomass
power generation is essential for a stable power supply. The
maximum output of the Hanamaki Biomass Power Generation
Co., Ltd.’s Hanamaki Power Plant is 6.25 MW. This is basedon the amount of fuel that can be procured within a 50 km
radius of Hanamaki City. The power plant uses approximately
80,000 tons of fuel annually and, with the cooperation of the
Hanamaki City Forestry Cooperative, is working to achieve
stable procurement of wood for fuel.
TAKEEI CORPORATION established the Hanamaki
Biomass Chip Co., Ltd. in February 2015 to ensure stableprocurement of wood for fuel. This company systematically
produces wood chips by drying timber in a large-scale lumber
yard adjacent to the power plant.
With the aim of achieving systematic sustainable fuelprocurement, TAKEEI CORPORATION established TAKEEIForestry Co., Ltd. in May 2020. In collaboration with a local
forestry cooperative, the company handles everything fromforest management to the supply of wood chips. In April 2021,
TAKEEI CORPORATION acquired approximately 240 hectaresof forest land in Ohasama-machi, Hanamaki. Throughrepeated dialogue, a forest management plan was createdwith the city of Hanamaki and the Hanamaki City Forestry
Cooperative. In addition to fully utilizing trees by shipping
logged timber as lumber and plywood, and processing it into
fuel chips, the company is also engaged in seedling cultivationand planting, and reforestation after logging. Logging,afforestation, and other operations are outsourced to local
forestry cooperatives. This strengthens relations with thelocal forest industry and economy.

Hanamaki Biomass Chip Co., Ltd.

Flow of woody biomass power generation based on forest maintenance (Hanamaki model)
TAKEEI Forestry Co., Ltd.
Collaboration with local forestry
associations, transporters, etc.

Afforestation

Group-owned
forestLogging/
forest thinning

Sales to lumber and plywood companies

Lumber(Ohasama-machi,
Hanamaki)

For building materials, etc.
SawingBranches and leaves/
treetops/small diameter trees

Power generation

From
nearby forests

Chip manufacturing
process

Supplychips(woody biomass power
generation plants)

Electricity
Industrial parks
supplyElectricity
sales(Tohoku ElectricPower Network
Co., Inc.)

Takeei Denki Co., Ltd.
Local elementaryand juniorhigh schools

Heat supply(use of residual heat)

Hanamaki Biomass Power Generation Co., Ltd.

Unused forest
resources andabandoned offcuts

Hanamaki
Biomass Chip Co., Ltd.

Hanamaki
Biomass Power
Generation Co., Ltd.

Greenhouse cultivation (wood ear mushroom)

Recycling
Recycling of ash and cinders
as raw materials for cement androadbed improvement

53

TRE HOLDINGS CORPORATION Integrated report 2022

TRE HOLDINGS CORPORATION Integrated report 2022

54

Renewable Energy Business
Case study Hanamaki woody biomass power generation project2022 highlights

Actively contributing to a carbon-neutral society

Fuel from pine-weevil-damaged wood
Iwate is the largest producer of red pine in Japan. Damage andwithering caused by pine weevils, however, has been increasing
in recent years. Measures against pine weevils and treatment ofdamaged trees in a timely manner are major regional forestry
issues concerned with pine forest conservation.
Hanamaki Biomass Power Generation Co., Ltd.’s
research and experiments conducted since the spring of 2016
in collaboration with industry, government, and academic
institutions—the Hanamaki City Agriculture and Forestry
Department/ Forestry Cooperative; the Iwate Prefecture
Agriculture and Forestry Department and the Forestry andForest Products Research Institute of the National Forestry
Research and Development Agency—have shown that it ispossible to convert damaged red pine trees into fuel. The
company succeeded in converting 7,500 tons (around 10%of logs needed to produce wood chips as fuel for power

generation) of damaged red pine trees into fuel in 2017.
The electricity generated was supplied to all Hanamaki
elementary and junior high schools and public facilities. We are
putting “local production for local consumption” into practicesupplying electricity generated from local pest-damaged trees
and offcuts from forest thinning to the local community.

Forest discolored and withered by pine weevils

Local production for local consumption
Hanamaki Biomass Power Generation Co., Ltd. supplies
approximately 40,000 MWh of electricity annually throughelectricity retailer Takeei Denki Co., Ltd. This equals theannual electricity consumption of around 14,000 households.
Since April 1, 2017, the company has practiced “local
production for local consumption” in supplying electricity to
28 elementary and junior high schools in Hanamaki.
Hanamaki Biomass Power Generation has additionallysucceeded in using residual heat from power generation tocultivate wood-ear mushrooms. The first mushrooms wereshipped in March 2021. The mushrooms are processed into
pickles in Hanamaki and used in school lunches and by local
lodging facilities. By commercializing agriculture in thisway, the company is planning to creating new employment
opportunities and contributing to environmental education.

Tamura Biomass Power Generation Co., Ltd. launches commercial operation with total
in-house management
Tamura Biomass Power Generation Co., Ltd., the Group’s sixth
woody biomass power generation plant, has the advantageof the accumulated experience of four power plants thatpreceded it in operation. Also, thanks to the resources andknowledge of Green Power Ichihara Co., Ltd. that has become
a consolidated subsidiary in April 2020. Tamura Biomass
Power Generation started commercial operation in April 2021
as the first Group woody biomass power generation plant tooperate totally in-house.
The sixth Group woody biomass power generation plant,
Tamura Biomass Power Generation aims to operate businessrooted in Fukushima Prefecture and the city of Tamura. In
addition to using materials produced in the prefecture forbiomass power generated fuel, the company has establisheda chip supply system in cooperation with local forestry

cooperatives, chip manufacturers, and government (chipsupply council), and gives priority to hiring local residents. We
will continue to develop community-based projects, including
operating local council meeting with local residents.

Tamura Biomass Power Generation Co., Ltd. Power Plant

Ministry of Economy, Trade and Industry GX League endorser
The above efforts gained Hanamaki Biomass Power
Generation the 2018 Tohoku Bureau of Economy, Trade, andIndustry’s Renewable Energy Utilization Award* Grand Prize,
and selection by the Ministry of Economy, Trade, and Industry
as a “The Driving Company for the Regional Future.”
The company will continue through its corebusiness of woody biomass power generation to contribute to
the revitalization of local communities and economies,
and to the realization of a carbon-neutral society, throughlocal collaboration and practices of “local production for
local consumption.”*A company that is actively developing businesses and strongly driving
regional economic growth by creating high added value through the use ofregional characteristics, thereby having a positive effect on local businesses.

The GX League was established in 2022 by the Ministry of
Economy, Trade and Industry as a framework for companies
with robust carbon reduction targets to voluntarily trade
emissions to achieve their goals while investing in emissions
reduction. The framework provides Japanese companies
striving for carbon neutrality an opportunity to lead in thetransformation of the overall socioeconomic system and thecreation of new markets. It also allows them to demonstratecompetitiveness in global business through the threefunctions of “a forum for dialogue on the vision of a futuresociety,” “a forum for the formation of market rules,” and “aforum for voluntary emissions trading.”
TAKEEI CORPORATION endorsed the GX League’s Basic
Concept in April 2022 and aims to achieve 100% electricity
consumption decarbonization (carbon neutrality) at all of its
facilities by 2026. As a supporting company, TAKEEI is activein the GX League Subcommittee.

Topic
Takeei Denki Co., Ltd. formed through integration of five group power retailing companies
On September 1, 2022, five TAKEEI Group power retailcompanies* merged with Takeei Denki Co., Ltd. (formerly
Yokosuka Urban-Wood Power Co., Ltd.). This unifies the
management of the electric power retail business, related
operations and data, improving the company’s ability torespond to a variety of issues.
We are also working on the establishment of a
resource and energy recycling scheme where wood wastefrom construction sites is used as fuel for woody biomass

power generation. The resulting renewable energy is supplied
to our partners, who are general contractors and real estatedevelopers, for power at construction sites.
In addition, we will contribute to the realization of acarbon-neutral society by promoting expansion of the Group’s
energy sources and selling non-fossil fuel certificates that
correspond to SBT/CDP/RE100 and other global initiatives.
* Tsugaru Apple Power Co., Ltd., Hanamaki Ginga Power Co., Ltd., Daisen
Komachi Power Co., Ltd., Fukushima Mirai Power Co., Ltd., and Yokosuka
Urban-Wood Power Co., Ltd.

Local employees harvesting wood ear mushrooms

55

TRE HOLDINGS CORPORATION Integrated report 2022

TRE HOLDINGS CORPORATION Integrated report 2022

56

Other businesses (Environmental Engineering / Environmental Consulting)Business model2022 highlights

Contributing to the solution of environmental problems
as a Comprehensive environmental management company
providing recycling technology and expertise

Developing and providing products and services
required by the times

TRE HOLDINGS is expanding into environmental engineeringand environmental consulting businesses.
In our environmental engineering business, wedevelop, manufacture, and sell environmental equipment
and plants, and special vehicles. Our concentration in thetwo business areas (environmental equipment and plants;
vehicles) reflects our core policy of providing technology andservices that contribute to the effective use of resources.
Our product maintenance service system ensures that ourenvironmental equipment and plants, and special vehicles arein good working condition for our clients throughout Japanin each of our business areas, including waste treatment
and recycling, steelmaking, metal recycling, and energy
production related fields.
In our environmental consulting businesses, we
provide a wide range of services, including industrial
waste management and measurement certifications forcorporations, environmental countermeasures, waste,soil, water and air quality research and analysis and other,
as well as a variety of environmental assessment-related
services for municipalities and government agencies. For theproper disposal of waste, regardless of type or property, we
provide our clients in a wide range of industries, including
manufacturing, construction, and waste disposal, with
consulting services, research, and analysis. We use our Group
network to make the best proposals for handling everythingfrom collection and transportation to final disposal.
Because a large number of specialized operational
procedures are necessary to meet legal requirements forthe proper disposal of waste, customers need to selectan outstanding waste disposal contractor with excellent
technology and experience. Our Group can handle a wide
range of waste disposal requests and consultations and canoffer our clients the optimal response that minimizes burden
and risk.

Environmental engineering supporting
advanced sorting technology

Asbestos inspection andanalysis services

Fuji Car Manufacturing Co., Ltd. is an engineering company
with two core businesses: environmental machinery/recycling plants and special vehicles. The company handles
the integrated development, manufacturing, sales, andmaintenance of each of its products.
In addition to waste crushing and sorting plants, thecompany also has expertise in scrap-related equipment and has
a strong track record of deliveries. Furthermore, The Recycle
Test Center has been set up in the plant head office to verify
all processes and performance from crushing to sorting andrecycling. This is useful for the development of new products.

Environmental Conservation Co., Ltd. and Earth-Appraisal
Co., Ltd. provide asbestos inspection services as part of theirenvironmental consulting business.
Businesses that own buildings or are engaged indemolition or renovation of buildings are required by the Air
Pollution Control Law to check for the presence of asbestos inadvance of their operations. If the inspection finds asbestos
present, measures must be taken to prevent exposure ofworkers to asbestos dust, as stipulated in the Ordinance on
Prevention of Asbestos-related Diseases.
Environmental Conservation Co., Ltd. provides
services using analytical methods including X-ray diffraction,
dispersion staining, and polarized light microscopy
to correctly determine asbestos presence and to takeappropriate measures in compliance with current laws
and regulations.

Clients
Manufacturers

Environmental recycling companies

Government and local agencies

etc.

Fuji Car Manufacturing advanced sorting line

Manufacturing LPG/ammonia tanks
TRE Group
Environmental Engineering Business

Manufacturing

Environmental Consulting Business

Development

Environmental
research

Environmental plant

Chemical analysis

SpecialvehicleEnvironmental
equipment

Sales andmaintenanceWaste Treatment and Recycling BusinessFuji Car Manufacturing uses its own high-pressure container
manufacturing technology to produce special vehicles andcontainers that safely and efficiently transport energy such asliquefied petroleum gas (LPG). liquefied hydrogen chloride (HCl)containers and “Fuji Hose One” LPG Bulk Trucks and otherspecial vehicles are highly rated. The company is also actively
engaged in manufacturing trucks and tanks to store ammonia
that has seen a significant increase in demand and is attracting
attention in Japan as an alternative energy source to fossil fuels.

Asbestos field inspection

Real estate Environmental Analysis
appraisalassessment

Certification

Resource Recycling BusinessPolarized light microscopy asbestos analysis

Renewable Energy BusinessFuji Car Manufacturing ammonia tank truck

57

TRE HOLDINGS CORPORATION Integrated report 2022

TRE HOLDINGS CORPORATION Integrated report 2022

58

Corporate governance

We will establish a suitable corporate governance structure in orderto practice sound, efficient and highly transparent management

Part

4

ESG

The Business Infrastructure
for Our Growth Strategy

Basic approach

Corporate governance structure

The TRE Group is aware that its businesses are built on
the healthy relationships of trust it has developed withshareholders, employees, business partners, the residentsof the areas around its business locations and various otherstakeholders. Based on that mindset, we have positioned thestrengthening and enhancement of corporate governanceas a key management task in order to pursue soundmanagement and live up to the trust that society has in us.
To practice highly sound, efficient and transparent
management, we are preparing and establishing appropriate
structures and implementing the necessary measures for
management decision-making, the execution of duties,
supervision and internal controls. We also ensure thatbusiness is carried out according to laws, regulations andinternal rules throughout the organization, and since we are
a company with an Audit and Supervisory Committee, ourmanagement decision-making and execution are supervised
from an independent standpoint.
The Group endorses the Corporate Governance Codestipulated by the Financial Instruments Exchange, and as abasic policy, we strive to strengthen corporate governance byimplementing an array of measures based on the spirit andintent of our principles and beliefs.

Board of Directors
The Board of Directors takes important decisions about
management strategies and plans and other matters. It alsosupervisions the execution of business. Three of the seven board
members are outside directors (including one female), and themembers possess a wealth of experience and a broad range ofknowledge as they include a lawyer, a certified public accountant
and a former vice-minister of the Ministry of Agriculture, Forestry
and Fisheries. When selecting company directors, the Nomination
and Compensation committee deliberates on whether they
have the foresight needed for future business expansion as
well as on their expertise regarding corporate management
and management strategy, internal controls and governance,
sales and marketing, environmental issues and sustainability,
manufacturing and technology, finance and accounting,human resources and labor, and legal issues and compliance.

Audit and Supervisory Committee
We are a company with an Audit and Supervisory Committee,
and we have built a structure where all of the members (threemembers, including one female) are outside directors so thatthey can supervise the directors’ execution of business froman independent standpoint.

TRE Group corporate governance structure
General meeting of shareholders
Appoint/dismiss

Appoint/dismiss

Appoint/dismiss

TRE HOLDINGS CORPORATION

Audit

Accounting auditors

Cooperate

Audit andSupervise
Supervisory Committee

Directors not on the Audit andSupervisory Committee: 4

Board ofDirectors

Outside directors on the Audit and Supervisory Committee: 3
Instruct

Nomination andCompensation Committee

Consult

Representative directors: 2

Outside directors: 3

Cooperate

Audit and Supervisory
Committee secretariat
Cooperate

Recommend

Audit
Supervise

Select/dismiss

InstructGroup Internal Audit Office

ReportReportGroup Internal Controls Committee(Secretariat: Group Compliance Council Office)President andchief executive officer

CSR and Sustainability
promotion Committee

InstructManagement
committee meeting

ReportCooperate(Secretariat: CSR and Sustainability
Promotion Department)

Compliance Committee
Information Security Committee

Guide

ReportCooperate

Internal audit
Internal control monitoring

Supervise TRE HOLDINGS CORPORATION(Corporate Planning Division &Corporate Management Division)
SupportReportTRE Group companies
Compliance managers(all risk management departments)

59

TRE HOLDINGS CORPORATION Integrated report 2022

Board of Directors

Auditors

CSR and Sustainability
Promotion manager

TRE HOLDINGS CORPORATION Integrated report 2022

60

Corporate governance

Establishment of a Nomination andCompensation committee
To improve the efficiency of the board of directors and further
enhance the corporate governance structure, we haveestablished a Nomination and Compensation Committee asa discretionary advisory body for the Board of Directors. It
consists of representative directors and outside directors,
with outside directors forming the majority. The committee
selects director candidates, evaluates officer compensation,
assigns points for the board benefit trust (BBT), assesses theeffectiveness of the board of directors and, when consulted by
the Board of Directors, provides suitable reports on importantmatters that concern management.

Analysis and assessment of theeffectiveness of the Board of Directors
We plan to survey all of the members of the Board of Directors
to increase the effectiveness of the board. The Nomination
and Compensation Committee will discuss and evaluate theresults of the survey, share the analysis results at a Board of
Directors’ meeting and publish the results.

Training for directors
TRE HOLDINGS provides directors with external training
opportunities so that they can gain new knowledge andinformation about the company’s businesses, finances andorganization, and fulfill the roles and responsibilities expectedof them. We also actively support these initiatives, including
by bearing the expenses for those training courses.

Officer compensation
Compensation for directors consists of a fixed basic
compensation, a performance-based compensation that isdetermined every year based on the company’s results, and a
medium-term performance-based compensation in the formof a board benefit trust (BBT) provided from the company’s own
shares, given upon retirement. Outside directors are paid a fixedbasic compensation that takes their responsibilities into account.
Furthermore, to ensure the objectivity andtransparency of director compensation, the company has
established a Nomination and Compensation Committee as adiscretionary advisory body made up of a majority of outside
directors, and the committee chairman is selected from theoutside directors.

61

TRE HOLDINGS CORPORATION Integrated report 2022

Additionally, according to the officer compensation
regulations set in June 2022, when a director’s compensation
is being determined, the amount of their management
responsibility as a director or executive officer will be taken
into account. The Audit and Supervisory Committee willtake decisions on directors who are Audit and Supervisory
Committee members after deliberations.

Cross-shareholdings policy
To expand the Group’s business areas, apart from capital andbusiness alliances, we may also possess shares if we deem
them necessary for maintaining and strengthening positive
business ties. We scrutinize the shares held for their purpose,business status and dividend yield to verify the rationality ofholding them.
Furthermore, when exercising voting rights for shares
held, we closely examine the contents of the agenda anddetermine whether it is a proposal that will increase thecorporate value of the issuing company in the medium tolong term. We make this decision comprehensively for eachbusiness partner.
We cast an opposing vote for proposals that would
seriously damage the shareholder’s value or cases that cause
major concern from a corporate governance point of view
such as a social scandal.

Sustainability management
The Group has set forth sustainability management in
its medium-term business plan as a means to achieve
an efficient recycling and carbon-neutral society as acomprehensive environmental management company.
In June 2022, we established the CSR and
Sustainability Promotion Committee to promote sustainability
management across all Group companies in order to further
enhance our initiatives, such as declaring our endorsementof TCFD recommendations, to address climate change andsocial issues.
The committee formulates action plans on climatechange and social issues for the Group and monitors theirprogress. It also deliberates and supervises their contents
at the Board of Directors’ meeting after discussing andobtaining a consensus on them at Group management
committee meetings.
The president and CEO, in addition to chairing the
CSR and Sustainability Promotion Committee, also chairs
the Group Internal Controls Committee and management
committee meetings and recognizes the many sustainability-

related issues as the most important risk to management.
Through speedy decision-making, we will continue todiscover and handle issues quickly and manage the PDCA
cycle so as to strengthen our management foundation.
For society to become sustainable and for thecompany’s continued growth, it is essential for every
employee to understand and share our ideas and policies.
Through our integrated reports and various kinds of training,
we will endeavor to spread and establish the Group’s
objectives and initiatives about sustainability.

Environment-related risk management
The Group regards environmental risk, including climatechange, as a management risk for the Group as a whole. The
CSR and Sustainability Promotion Committee deliberates
plans and measures for combating climate change andreports the progress of plans to the Board of Directors.
For critical environmental issues, the committee
works with the Group Internal Controls Committee to share
information. The Board of Directors receives regular reportson the progress of management plans about climate change
and other issues and monitors the state of their execution.

TRE Group sustainability management (structure)
Board of Directors

Policy on constructive dialogue
with shareholders

ReportTRE HOLDINGS has established a department in charge ofinvestor relations (IR), and the president and CEO and IR
Department handle communications with shareholders
and investors.
Furthermore, at quarterly financial briefings,
the president and CEO and the IR Department provide
explanations about new businesses, trends in businessresults and important businesses included in the mediumterm business plan, and they also endeavor to increase
understanding through a question-and-answer session. In
addition to the above, to facilitate sustainable growth andincrease medium- to long-term corporate value, we have apolicy of responding positively as far as reasonably possible
to interview and reporting requests from shareholders andinvestors who wish to communicate constructively with us
while ensuring that important non-public information is notdisclosed to one section of investors only.

CSR and Sustainability
Promotion Committee

Group Internal Controls Committee
Committee chairperson: President and CEO

Cooperate

Committee chairperson: President and CEO
Members: Directors and executive officers
External experts(appointed by the chairperson)

Cooperate

Group Management committee meeting
Chairperson: President and CEO

CSR and Sustainability
Promotion Committee secretariat(CSR and Sustainability
Promotion Department)

ReportSupportTRE Group companies

TRE HOLDINGS CORPORATION Integrated report 2022

62

List of executives(As of October 1, 2022)

Directors

Outside directors (Audit and Supervisory Committee members)

Naoto Matsuoka

Mitsuo Abe

Chairman and CEO

President and COO

Number of shares of the Company held:
10,000Attendance at Board of Directors’ meetings:
7/7

Number of shares of the Company held:
16,716
Attendance at board of directors’ meetings:
7/7

Apr. 1972 Joined Mitsubishi Corporation
Apr. 1999 President and Representative Director, Ueno Tekko Co., Ltd.
Mar. 2001 Director, Metal Recycling Co., Ltd. (currently REVER CORPORATION)
Apr. 2004 President, Metal One Structural Steel & Resource Corporation(currently MM&KENZAI Corporation)

Apr. 2008 Senior Managing Executive Officer and Division COO, Steel Plate,
Tube & Construction Materials Division, Metal One Corporation
Apr. 2009 President & CEO, Director, Metal One Corporation
Sep. 2015 President and Representative Director, SUZUTOKU Holdings Co.,
Ltd. (currently REVER HOLDINGS CORPORATION)
Sep. 2016 Director, HIDAKA SUZUTOKU (Thailand) CO., LTD.

Jun. 2017 Director, SUNNY METAL CORPORATION

Director, PHOENIX METAL CORPORATION(currently REVER CORPORATION)
May 2018 President, Representative Director and Executive Officer, REVERHOLDINGS CORPORATION (current position)
Oct. 2021 Member of the Board, TAKEEI CORPORATION (current position)
Chairman and Executive Officer, the Company (current position)
Jun. 2022 Representative Director, TRE Foundation for SDGs Promotion(current position)
Jul. 2022 President and chief executive officer, REVER CORPORATION(current position)

Resona Kessai Service Co., Ltd.
Apr. 2017 Joined TAKEEI CORPORATION, Executive Officer,
Deputy General Manager, Corporate Planning Division
Jan. 2018 Executive Officer, Deputy General Manager, Sales Division andGeneral Manager, Related Business Department
Jun. 2018 Member of the Board, Managing Executive Officer and General
Manager, Corporate Planning DivisionJun. 2019 Member of the Board, Chief Operating Officer (current position)
Representative Director, T·V Energy Holdings, Inc.
May 2020 Director, Green Power Ichihara Co., Ltd. (current position)
Chairman, TAKEEI Foundation for SDGs Promotion(currently TRE Foundation for SDGs Promotion) (current position)
Sep. 2021 Director, REVER HOLDINGS CORPORATION (current position)

Oct. 2021 President and Executive Officer, the Company (current position)

Number of shares of the Company held:
1,000,000
Attendance at Board of Directors’ meetings:
7/7

Number of shares of the Company held:
2,116,556
Attendance at Board of Directors’ meetings:
7/7

Apr. 2006 Chairman and Representative Director, Suzutoku LTD.

Apr. 1975 Joined Asahi & Co. (currently

Apr. 1994 Joined BLAKEMORE & MITSUKI
Oct. 1996 Joined Hideyuki Sakai

KPMG AZSA LLC)
Aug. 1979 Registered as a certified public
accountant
May 1990 Partner, Asahi Shinwa & Co.
(currently KPMG AZSA LLC)
May 2000 Representative partner, Asahi
Audit Corp.
(currently KPMG AZSA LLC)
Jun. 2013 Resigned from KPMG AZSA LLC

Jun. 2014 Outside Member of the Board,

Recruitment Co., Ltd.
Outside Member of the Board,
Inageya Co., Ltd.
Mar. 2022 Outside Director,
JAC Recruitment Co., Ltd.
(Audit and supervisorycommittee member)(current position)
Oct. 2022 Outside Director, the Company(Audit and supervisorycommittee member)(current position)

Law Firm
Jun. 2006 Established Ichigaya
International Law Firm
(currently SHINDO &MATSUMURA LAW OFFICE)(current position)
Sep. 2019 Outside Director, REVERHOLDINGS CORPORATIONREVER HOLDINGSCORPORATION
Oct. 2021 Outside Director(Audit and supervisorycommittee member)(current position)(currently TAKEEI CORPORATION)

Jun. 1983 Member of the Board, Chief Operating Officer
May 2002 Representative director, Gypro Co. Ltd.
Mar. 2003 Representative director, Recycle Peer Co., Ltd.
(currently TAKEEI CORPORATION)
Jun. 2004 Director, New Energy Supply Corporation

Corporate
management/
management
strategy(current position)

Sep. 2007 Representative Director, Green Arrows Holdings, Inc.

(current position)
Jun. 2013 Representative Director, New Energy Supply Corporation

Jul. 2017 Chairman and Representative Director, RUN Ltd.
Apr. 2021 Outside Director, BESTERRA CO., LTD. (current position)
Oct. 2021 Director, the Company (current position)

Oct. 2021 Director, the Company (current position)

Forestry and Fisheries

Mar. 2002 Counsellor, Cabinet Secretariat,

Prime Minister’s Office of Japan

Oct. 2006 Director, Environment Policy Division,

Minister’s Secretariat, Ministry of Agriculture,
Forestry and Fisheries
Jul. 2007 Director, Policy Planning and Evaluation Division,
Minister’s Secretariat, Ministry of Agriculture,
Forestry and Fisheries
Apr. 2008 Director, Food Security Division,
Minister’s Secretariat, Ministry of Agriculture,
Forestry and Fisheries
Apr. 2009 Policy Planning Division, Minister’s Secretariat,
Ministry of Agriculture, Forestry and Fisheries
Jul. 2010 Director-General, Forest Policy Planning
Department, Forestry Agency, Ministry ofAgriculture, Forestry and Fisheries
Apr. 2014 Director-General, Kanto Regional Agricultural
Administration Office, Ministry of Agriculture,
Forestry and Fisheries
Jul. 2015 Director-General, Rural Development Bureau,
Ministry of Agriculture, Forestry and Fisheries
Jun. 2016 Director-General, Industrial Science andTechnology Policy and Environment Bureau,
Ministry of Economy, Trade and Industry
Jul. 2018 Vice-Minister of Agriculture, Forestry and Fisheries,
Ministry of Agriculture, Forestry and Fisheries
Oct. 2020 President and Representative Director,
Next-generation Industry Research Institute Co.,
Ltd. (current position)
Jan. 2021 Specially Appointed Professor, ResearchInstitute for Agricultural and Life Sciences,
Tokyo University of Agriculture (current position)
Jun. 2021 Outside Director, SBI Holdings (current position)
Oct. 2021 Outside Director (Audit and supervisorycommittee member) (current position)
Dec. 2021 Outside Director, Nexyz.Group Corporation(Audit and Supervisory Committee member)(current position)

Internal
control/governance

Sales/
marketing

Environment/sustainability

Production/technology

Finance/accounting

HR/
labor
management

Legal/
compliance

Naoto Matsuoka(current position)

Jun. 2008 Representative Director, Green Arrows Kantou Co., Ltd.
Jun. 2010 Chairman of the Board of Directors, TAKEEI CORPORATION

Apr. 1983 Joined Ministry of Agriculture,

Expertise of directors and outside directors

Aug. 2006 Representative Director, Monzen Clean Park Co., Ltd.

May 2020 Representative Director, TAKEEI Foundation for SDGs Promotion

Mitsuo Abe
Takao Suzuki
Mamoru Mitsumoto(currently TRE Foundation for SDGs Promotion)

Outside Director

TRE HOLDINGS CORPORATION Integrated report 2022

Number of shares of the Company held: 0
Attendance at Board of Directors’ meetings: 7/7

Mar. 1977 Member of the Board, Takeei Construction Co., Ltd.

Dec. 2015 Chairman and Representative Director,
Major Venous Japan Co., Ltd.

Number of shares of the Company held: 0
Attendance at Board of Directors’ meetings:
6/7

Director(currently REVER CORPORATION)
Jul. 2007 President and Representative Director,
SUZUTOKU Holdings Co., Ltd.
(currently REVER HOLDINGS CORPORATION)
Sep. 2013 Chairman and Representative Director (current position)

Number of shares of the Company held: 0
Attendance at Board of Directors’ meetings:- (newly appointed in October 2022)

Nichiban Co., Ltd.

Director(currently REVER CORPORATION)
Dec. 2003 Chairman and Representative Director, NAKADAYA CORPORATION

Hiroyuki SuematsuMar. 2015 Outside Corporate Auditor, JAC

Mamoru Mitsumoto

Apr. 1985 President and Representative Director
Jun. 1996 Chairman, Japan Iron and Steel Recycling InstituteJan. 2002 Chairman of the Board, Metal Recycling Co., Ltd.

Fumie Omura

TAKEEI CORPORATION

Director(currently REVER CORPORATION)
Apr. 1973 Director
Jul. 1978 Managing Director

Naoto Yokoi

Jun. 2014 Outside Corporate Auditor,

Takao Suzuki

Apr. 1968 Joined Suzuki Tokugoro Shoten Co., Ltd.

63

Mar. 2016 Retired as Managing Executive Officer, Resona Bank, Limited
Mar. 2017 Retired as Representative Director and President,

Naoto Yokoi
Fumie Omura
Hiroyuki Suematsu

TRE HOLDINGS CORPORATION Integrated report 202264

Occupational health and safety

We are dedicated to creating work environments and introducing
and improving systems where all employees can work in safety andwith peace of mind
Response to emergencies

Fire prevention measures

Emergency drills

The Group takes the following hard (engineering) and soft
(management) measures to prevent fires, mainly at its
shredder plants.
1. Install and increase number of fire detectors.
2. Install and increase number of fire hydrants andwater cannons.
3. Install mist sprayers inside the shredders themselves.
4. Patrol with portable thermo-sensors.
At night and on holidays when employees areabsent, the fire detectors are linked to a security company
to minimize the risk of a fire outbreak. The mist sprayers
spray a fine mist inside the shredders and create a moist
environment that prevents fires and explosions in themachines. Portable thermo-sensors allow us to sense a wide
range of temperature increases from the color displayed on
the screen, preventing ignition fires. In addition to these steps,
we also take management measures to prevent fires suchas spreading information about preventing contamination by
hazardous materials, strengthening inspections, sprinklingwater on base metals and dust yards, and strengthening thesystem through initial firefighting drills.

To ensure that employees can quickly play their roles whena fire or other emergency occurs, the TRE Group regularly
carries out emergency drills at all of its facilities.
To improve the effectiveness of reporting, guidance, aid
and initial firefighting, we also work with local fire stations tohold fire drills and standard first aid courses at certain plants.
In the unlikely event of an emergency, we are fully prepared torespond calmly.

A fire drill in progress at REVER CORPORATION’s Kumagaya Plant

Transportation safety management

Introduction of a safety confirmation system

Alcohol testing

The Group is in the process of developing a safety
confirmation system that will check the safety of employees
when an earthquake strikes. With this system, an email will
be sent to employees automatically when a 5.0 or higher
earthquake occurs. The responses will be automaticallyand separately tallied for each office, and management
will be able to check the responses. The aim is to speedily
confirm the safety of employees in order to gain an accurate
understanding of the situation so that efforts at restoration
can progress smoothly. We will also conduct regular safety
confirmation drills so that employees can use the system
without hesitation in an emergency.

The Group owns 462 vehicles for collection andtransportation. There are two aspects to safe transportation:
ensuring the safety of the areas where the vehicles move,and ensuring the occupational safety of the employees who
work in the vehicles. To ensure safety, we conduct alcohol
testing on transport staff at the roll-call before and after they
drive. This is not limited to transport staff only. We also test
employees from sales and other departments whenever they
drive the vehicles. The revised Road Safety Act which comes
into effect in Japan in October 2022 will make alcohol testing
using detectors mandatory for drivers of standard private
cars (with white license plates) as well. Accordingly, we arereviewing our management system for alcohol testing toensure full compliance with the revised law.

ColumnIsesaki Plant records 5,000 days without
an accident

Taking an alcohol test before driving

Annual driving aptitude test
EQUAL ZERO Inc. performs an annual driving aptitude
test for all employees, testing them in five areas including
reaction speed and attention distribution and awareness.
Undergoing the yearly test allows employees to review theirown driving and provides a good opportunity for them to pay
attention to their everyday driving, including driving for workand commuting.

Responding to legal changes(fall arrest equipment)
As a result of a revision to the Industrial Safety and Health
Act, it is now obligatory that safety harnesses (fall arrest
equipment) used must be full harnesses. In accordance with
this, the Group has installed fall arrest equipment at all plants
and implemented measures to comply with the revised law
and eliminate accidents when working in high places at every
office. One company, Gypro Co., Ltd., has introduced a new
standard full-harness safety belt for customers with large
vehicles that hang sheets in high places.
Additionally, to teach on-site employees about safety,
the REVER Group carried out online safety education courses
with the help of two safety equipment manufacturing
companies. A total of 90 personnel in charge of safety from all
Group companies participated, listening to lectures on how to
use fall arrest equipment and dust masks correctly and thestandard for selecting them.
Through the courses, they were able to gain essential
knowledge and also deepen their awareness of safety.

On November 17, 2021, REVER CORPORATION’s
Isesaki Plant recorded 5,000 consecutive days without
an accident. Before that, the plant had received a
Fifth-class Gold Award from the Japan Industrial
Safety & Health Association (JISHA) for achieving
4,400 days without an accident.
Moreover, on December 3, 2021, REVER
CORPORATION’s Nasu Plant also recorded 3,050
consecutive days without an accident and was awardeda Fifth-class Gold Award from JISHA. Following theIsesaki plant, this makes two REVER CORPORATION
plants that have received the Gold Award.

President Matsuoka of TRE HOLDINGS CORPORATION (right) and
General Manager Okawa of the Nasu Plant (left) receiving theFifth-class Gold Award

Workplace COVID-19 vaccinations
TAKEEI CORPORATION held workplace vaccination
events for employees of all Group companies and otherinterested parties such as those from partner companies.
The first and second doses were administered between
July and September 2021 while the third dose
was given in April 2022. We also instituted “special
COVID-19 vaccine leave (paid)” so that employees
could get vaccinated outside of the workplace events.

A workplace vaccination event held at TAKEEI CORPORATION’s
Kawasaki Recycling Center

65

TRE HOLDINGS CORPORATION Integrated report 2022

TRE HOLDINGS CORPORATION Integrated report 2022

66

Create work environments that are easy to work in

We will create work environments where every individual employee
can work positively and display their skills sufficiently

Diversity and inclusion
Providing an environment that is easy for employees to work in is
an important management issue for the TRE Group. We haveclearly expressed our opposition to gender discriminationand child labor, and we strive to create an environment where
all employees can use their diversity equally and live fulfilling
lives both at work and in their private time.
In creating that environment, we also strive, throughefforts such as appointing female managers and encouraging
men to take childcare leave, to make it a place where
everyone can work positively and display their individuality
and talents to the fullest.

Going a step further, the REVER Group has introduced
an Accumulated Paid Leave System for employees withfamily members who need care, allowing them to accumulate
paid leave that would otherwise expire. TAKEEI CORPORATION
also has a Comeback System that provides recruitment
information to former employees who left because ofchildcare, care-giving, a spouse’s transfer or another reason
but wish to rejoin the company.
We are also working to enhance systems that makeit possible for individual employees to adopt their preferredworking styles depending on their circumstances.

Opening an employee canteen

The Group does not discriminate between men and women,
and we have female employees succeeding in a variety of areas
including factory work, sales, planning and management.
We also have systems in place that promote greater
success for female employees such as the Limited Area Careertrack System that makes it possible to boost one’s career without
relocating, and the introduction of the Job Group Change System(at TAKEEI CORPORATION) that responds flexibly to requests
to change job groups. Both of these systems make a variety ofcareer paths available, prevent the loss of human resources
through resignation and help with the recruitment of talented
personnel locally. At present the ratio of female managers in
the Group is 5.1%, but we will work to improve the business andwork environment and promote employees to management
positions based on their abilities, regardless of gender.

In September 2021, TAKEEI CORPORATION’s Tokyo Recycling
Center opened a new canteen for its employees.
The menu consists of nutritionally balanced daily set
meals which switch from Japanese fare to Western, Chineseand noodle dishes depending on the day. Dishes made withsweet tomatoes or wood ear mushrooms cultivated using
the residual heat from the Group’s woody biomass power
generation plants are also served on occasion.

Education, training and career support
for employees
Implementing training by rank, career and issue

Support for balancing work with childcare andcare-giving
The Group has introduced a Reduced Working Hours forChildcare System to support employees caring for children.
It allows them to choose to work six or seven hours in a day
until their children graduate from elementary school. To
support care-giving, we have made care-giving leave, caregiving absences and reduced working hours available
so that employees can focus on caring for their families
without worry.

67

TRE HOLDINGS CORPORATION Integrated report 2022

The REVER Academy
Training Program held at
REVER CORPORATION’s
Funabashi Plant

Introducing external training through e-learning
To support employee self-improvement, REVER HOLDINGSCORPORATION has introduced e-learning training where all
employees can select and take courses based on the skills
they wish to improve or topics related to their positions. The
initiative aims to help them develop and use the results intheir day-to-day operations.

Flexible personnel changes
Providing nutritious
daily set meals

The TAKEEI Group carries out training for employees divided
by rank, career and topic, with the aim of developing a great
number of human resources who are aware of their own
roles and responsibilities and who can create the futureof the TAKEEI Group by taking on new challenges. These
training courses include a lot of group work and are aimed
at getting employees in different departments to interact.
We also have an Elder System where young employees act
as educators to support new employees who joined after
them, offering them practical guidance and workplace life
assistance throughout the year. This initiative increases thecommunication skills of young employees and their ability toprovide practical guidance.

Interview
A male employee who took childcare leave

I was able to spend
precious andirreplaceable momentswith my family.
Kenta Ootake
REVER CORPORATION,
Fujisawa Plant

Work environment creation

Promoting greater success for female employees

A female employee
doing sorting work at aconstruction site

REVER Academy Training Program
The REVER Group runs the REVER Academy Training
Program to give employees an understanding of the various
businesses and tasks in the company so that they can learn
and master skills related to the jobs they are involved in.
In 2021, the program was held at REVER CORPORATION’s
Funabashi Plant for the company’s clerical workers. They
toured the plant, held discussions with plant workers andgained a deeper mutual understanding of their respective
work areas and duties.

To respect the wishes of the individual when it comes topersonnel placement, the Group provides many opportunities
for employees to convey their ideal career plans to theirsupervisors and the human resources department so that,by increasing mutual understanding between the company
and the individual, we can create an organization whereindividuals can exhibit their abilities to the fullest.
TAKEEI CORPORATION also distributes a job cardannually where employees can enter the future tasks
and transfer locations they are interested in, providing an
opportunity for them to challenge themselves in the jobs
they are aiming for of their own accord. The company has
also introduced an Internal Recruitment System designed
for the optimal placement of motivated personnel indepartments that need them. Moreover, based on the resultsof employee job satisfaction surveys, the REVER Groupendeavors to create fulfilling workplaces that reflect thethoughts of its employees.

I took about a month of childcare leave in 2021.
I had always wanted to take childcare leave
to relieve my wife of some of the burden if we ever
had a child, but very few men in the company havetaken childcare leave, and at the time, no one had everdone so at my plant. I thought it would be difficult forme to get childcare leave, but my supervisor, who I
often consulted about family issues, recommended
that I take the time off, and thanks to the support andencouragement of my understanding supervisors,colleagues and those around me, I was able to do it.
I spent about a month before the breakpreparing and adjusting my work duties. During the
break, I stepped away from work completely andfocused on sharing housework and childcare duties
with my wife. It was much harder than I had imagined.
I was fortunate to spend a lot of time with them, which
made my child much more familiar with me, and I wasable to experience my child’s development on a daily
basis, so it was a very precious time for me. Although
I was worried that taking a fixed period of childcare
leave would leave a hole at work, I was able to spend
irreplaceable time with my family.
When I returned to work, I was able to resume
the same duties as before, and the people at the plant
warmly welcomed me back. Since I returned, I haveapproached my work with a greater awareness ofbalance so that I can handle both working life andfamily life in the limited time available. It is essential tohave the understanding and cooperation of everyone
involved when taking childcare leave, so I hope thecompany will continue to create environments that areeasy to work in and that my example will lead to more
people taking leave like I did.

TRE HOLDINGS CORPORATION Integrated report 2022

68

Living and thriving together with the local community

We place great importance on communication with local residents
and actively participate in social contribution activities as a memberof the community
SDG contribution activities
Initiatives of the TAKEEI Foundation for SDGs Promotion
Founded on May 1, 2020, the TAKEEI Foundation for
SDGs Promotion promotes activities that contribute to
the achievement of the SDGs, and in 2021 it engaged inenvironmental conservation activities after taking thoroughmeasures to prevent the spread of COVID-19.
In an endorsement of the “Umigomi Zero Week”(zero marine litter week) promoted by the Ministry of theEnvironment and the Nippon Foundation, in June and
September TAKEEI CORPORATION cleaned up the area around
its main office. Awareness spread widely to other offices
and Group companies, and a total of 429 persons took partin cleanup exercises around their companies and in cleaning
activities organized by local authorities. In November, 51
persons participated in the “Minato Cleanup Campaign 2021”
organized by Minato ward in Tokyo. By uploading theiractivities on Pirika, a social media network that can be sent
worldwide, they were able to connect with other people
collecting litter around the globe as well as to those within
the company, which became a catalyst for employees who
had never taken part in such activities to want to join the next
cleanup exercise.
To accompany the establishment of TRE HOLDINGS
in 2022, the name of the foundation was changed to TRE
Foundation for SDGs Promotion, and it will cover the activitiesof the TRE Group as a whole from now on.

The cleanup exercise carried out around the TAKEEI CORPORATION main office69

registered under the Chiba SDGs Partner Registration
System. And in June 2022, Daisen Biomass Power
Generation Co., Ltd. registered in the Akita SDGs Partner
Registration System.

Four of REVER CORPORATION’s
plants registered in the Chiba
SDGs Registration System

Chiba Prefecture mascot
CHI-BA+KUN

Chiba SDGs Partner No. 326

Social contribution activities
Vocational training guidance at a special needs school
The Nasu Plant of REVER CORPORATION conducts its
business in Tochigi, and it dispatches employees to special
needs schools in the prefecture to serve as corporate
advisors during practical lessons. They mainly instruct
students on how to manually disassemble PCs andremove circuit boards and other parts. The Nasu Plant
has participated in this effort since 2017 as part of the
Educational Enhancement Program for Special Needs
Schools promoted by the Ministry of Education, Culture,
Sports, Science and Technology. They also support students
to become professionally independent when they graduate.

Sponsoring the WE LEAGUE
TRE HOLDINGS empathizes with the ideals of the WE LEAGUE,
Japan’s first-ever women’s professional soccer league,
which was founded with the main objective of promoting
gender equality and women’s advancement. Accordingly,
we began to sponsor the league as a silver partner in 2022.
Through our activities with the league, we will promote
gender equality and SDGs initiatives in the TRE Group and insociety as a whole.
The specific aim of this sponsorship is to increase thevisibility of the name of TRE HOLDINGS among a wide range of
people interested in soccer, women’s soccer, women’s social
progression, and environmental conservation, including
families and Generation Z, through soccer fields and video
media. We will also deepen the understanding of people in thecommunity towards the Group by supporting the activitiesof league member teams who hail from areas where theGroup has offices. Apart from that, we will make every effort
to interact with other corporate sponsors of the league sothat, through participation in league-organized study groups
and other events, we will be able to strengthen our corporate
network and understand the activities other companies areengaged in towards achieving the SDGs.

Supporting fire department rescue unit training
REVER CORPORATION’s ELV Kashiwa Plant donated an
end-of-life vehicle to the Kashiwa City Fire Department to
be used in traffic rescue incident response training for the
special rescue unit. The structure of vehicles becomes more
complicated every year, so having a donated vehicle to use forpractical training will help the unit members to increase theirknowledge and rescue skills.
Traffic rescue incident
response training carriedout by the Kashiwa Fire
Department using avehicle donated by the
REVER CORPORATION’s
ELV Kashiwa Plant.

A letter of thanks from a fire station

All prefectures in Japan have established an SDG-Promoting
Company Registration System to create opportunities
for companies in their regions to pursue the SDGs and toencourage them to undertake specific initiatives.
Shinshu Takeei Co., Ltd. registered in the Nagano
SDG-Promoting Companies Registration System in January
2021. In March 2022, four of REVER CORPORATION’s offices
in Chiba (the Funabashi, ELV Kashiwa, Chiba, Ichihara plants)

In November 2021, the Midori fire station in Chiba sent a
thank-you letter and commemorative gifts to two employeesof Takeei Energy & Park Co., Ltd., which manages Takeei EcoPark Golf Okido, a park golf course built on the remains of aformer landfill. By cooperating with the rescue unit to use an
automated external defibrillator (AED) and perform cardiac
massages, the two employees saved the life of a customer
who fell ill while playing on the golf course in September

TRE HOLDINGS CORPORATION Integrated report 2022

Satoyama development
As part of its efforts to develop satoyama (woodland near
populated areas), Hokuriku Environmental Services Co., Ltd.
has created a sunflower field from fallow fields it has rented
in the Hiraguri area in Kanazawa city, Ishikawa, where thecompany conducts its business. Around May, they makeridges and sow seeds, and from August onwards the earlyblooming and late-blooming varieties begin to bloom, giving
everyone in the area about one month to appreciate thesunflowers. In addition to that, the company is involved inother efforts to protect the natural environment of the region,such as cleaning up the place nicknamed HOTARU IKE (FireflyPond) in the same area to provide an environment that is easy
for fireflies to live in.

On-site guidance as acorporate advisor

Registered as an SDG-promoting company

WE LEAGUE official matches

2021. Thanks to their rapid response and appropriate
treatment, the customer successfully escaped death, and theletter praised their achievement.

The sunflower field
cultivated by Hokuriku
Environmental Services
Co., Ltd.

Participation in tree-planting activities
Tohoku Koueki Recycling Technology Co., Ltd., TAKEEICORPORATION’s Tohoku branch and Tamura Biomass Power
Generation Co., Ltd. took part in the 4th Fukushima Tree-planting
Event held in Namie in Fukushima. TAKEEI CORPORATION’s
Tohoku branch and Environmental Conservation Co., Ltd.,
Sendai branch took part in the 2021 Millennium Hope Hills
Tree-planting Event in Iwanuma, Miyagi. As a measure toprevent the spread of COVID-19, both events were limited toresidents of Miyagi only, so offices close to the venues came
together to participate and contribute to the regional activity.

2021 Millennium Hope
Hills Tree-planting Event

TRE HOLDINGS CORPORATION Integrated report 2022

70

Disaster recovery support

Helping disaster-stricken areas to recover as quickly as
possible by treating disaster waste, the first step todisaster recovery
Great East Japan Earthquake
recovery project
On March 11, 2011, the largest Tohoku Pacific Offshore
Earthquake (Great East Japan Earthquake) in recorded
history struck, and the accompanying tsunami devastatedthe pacific coast of Japan from Hokkaido to Chiba, with themost damage occurring in Iwate, Miyagi and Fukushima.
The TRE Group entered Iwate on March 27th, half a monthafter the earthquake, and searched for ways to contribute to
the recovery of each area while investigating and trying tounderstand the situation on the ground.

Kamaishi, Iwate recovery project
The first Great East Japan earthquake recovery project theGroup tackled in the Tohoku region was a disaster waste
treatment trial run implemented in Kamaishi, Iwate, by the
Ministry of the Environment. We participated as one company
in a joint venture.
Under the trial run, we carried out investigations andanalysis while collecting a large amount of data in orderto clarify the issues involved in disaster waste. As a result
we were able to clarify the methods for dealing with theestimated 23,000,000 tons of disaster waste. All of the dataobtained through the trail run was publicized and used widelyin recovery work in various areas. Besides this, the Groupinstalled an intermediate treatment plant at the site andcontributed to the treatment of about 50,000 tons out of theapproximately 760,000 tons of disaster waste in Kamaishi city
through mechanical sorting and recycling.

nine crushers suitable for treating each kind of item andthirteen sorting machines known as trommel screens andvibration screens, as well as several other heavy machines.
The people in the disaster-stricken area also cooperated with
us in the sorting and heavy machinery work.

The disaster recovery support site (Otsuchi, Iwate)

Watari, Miyagi recovery projectAs a result of the tsunami, 48% (35km2) of Watari town in
Miyagi was damaged by being submerged in water, 465,000
tons of disaster waste were generated and there was tsunami
sediment over an area of 186,000m3, the fourth largest
affected area in the Miyagi.
A joint venture of major and local construction
companies received the order for all the waste treatment
work. The TRE Group assumed the responsibility forsorting and crushing mixed waste. In providing this kindof intermediate treatment, the Group was required to treat
over 370,000 tons of waste in a limited time, sort recyclable
materials as much as possible and recycle them to minimize
the amount of landfill waste, and increase quality andaccuracy for sorted earth and sand so that the fine sand could
be reused as reconstruction material. To serve as a treatment
plant for the mixed waste, we installed facilities on the samelevel as the Group’s Kawasaki recycling center and processed
the waste there.

At the disaster recovery support site

Otsuchi, Kamihei, Iwate recovery project
In Otsuchi town in Iwate, the Group formed a joint venturewith major construction companies and local construction
companies which received an order to transport disaster
waste from the primary temporary storage area to thesecondary temporary storage area for sorting and crushing.
The Group’s role was to sort and crush the mixed waste(burnable and non-burnable). We processed the waste using

71

TRE HOLDINGS CORPORATION Integrated report 2022

The disaster recovery support site (Watari town, Miyagi)

Our current projects in Fukushima
TAKEEI CORPORATION is involved in the planning of “Waste
Treatment Project No. 1 at the Futaba Town Volume
Reduction Facility (Interim Storage Facility) from 2021 to2022” in Futaba town, Fukushima. As part of the project, theGroup is working to collect and transport disaster waste,
clean up trash and detoxified waste to the Futaba Town
Temporary Incineration Facility No. 1 and Futaba Town
Temporary Ash Treatment Facility No. 1 and transport
products detoxified at those two facilities.
Elsewhere, in Okuma town in Fukushima, we are
involved in planning the “2021 Interim Storage (Okuma 5
Construction Area) Soil Storage Facility Project.” We areengaged in operating and maintaining a plant that separates
foreign objects (metal, wood, burnable waste, debris) fromdecontaminated soil collected in Fukushima so that it canbe stored and managed at interim storage facilities. We willcontinue to contribute to the recovery and restoration ofdisaster-stricken areas.

A letter of appreciation from the city of Ishinomaki
In March 2021, 10 years after the earthquake, TAKEEICORPORATION received a letter of appreciation from
Ishinomaki in Miyagi. To assist in the early recovery ofdisaster-stricken areas, the Tokyo metropolis accepted
disaster waste from Iwate and Miyagi, and Recycle Peer Co., Ltd.*
collaborated in the processing.
* Absorbed by TAKEEI CORPORATION in 2015. Now the Tokyo Recycling Centerof TAKEEI CORPORATION.

Joining Japan Disaster Treatment Systems
TAKEEI CORPORATION is a member of Japan Disaster
Treatment Systems (JDTS), an association jointly establishedby waste treatment companies across the country to build a
network that allows for fast and efficient waste treatment in
the event of a disaster. JDTS is a member of the Ministry of
the Environment’s D.Waste-Net (Disaster Waste Treatment
Support Network), and it provides support during disasters
based on requests for cooperation from the ministry. As
waste treatment professionals, we will use the knowledge
and experience we have gained to support the recovery of
the areas affected in order to contribute to recovery andrestoration as quickly as possible when an emergency occurs.

Disaster recovery support after typhoon
no. 19 in 2019
Participated in the “Disaster Waste Treatment
Support Project in Nagano”
In October 2019, typhoon no. 19 approached Nagano, andthe resulting fierce rainstorm caused flood damage in the
Chikuma river basin from the cities of Chikuma to Iiyama.
EQUAL ZERO Inc. participated in the “Disaster Waste
Treatment Support Project” directed by Nagano aimed atrecovery from the disaster.
The company was entrusted by the Nagano Prefecture
Resource Circulation and Preservation Association withpart of the guidance and assistance with unloading, internalclassification and organization at the storage site. It also
handled administrative duties such as selecting treatment
destinations and transportation companies, managing daily
vehicle dispatches and the quantities taken out, and creating
documents for submission to the authorities.
The company was also directly commissioned by thecity of Nagano to remove and transport earth and sand mixed
with disaster debris to accompany the repair works aimed at
restoring temporary storage sites to their original state after
waste had been transported away.

A letter of appreciation from Chiba city
In October 2019, a major landslide occurred in Chiba as aresult of unprecedented heavy rains caused by typhoons
no. 19 and no. 21. In response to the situation, TAKEEICORPORATION performed repairs on the slopes where theearth had spilled. This initiative contributed to the region, forwhich reason the city of Chiba sent a letter of appreciation to
the company in February 2021.
Afterwards, based on an “Agreement on Collaborations
on Emergency Measures during Disasters” concluded with
Chiba, the company also removed the spilled earth, repaired
the slopes and greened the area for free.

A letter of appreciation from Koriyama city
In March 2021, TAKEEI CORPORATION’s Tohoku branch
received a letter of appreciation from the city of Koriyama in
Fukushima. The letter expressed gratitude for the company’s
support by collecting waste in small cars and transportingit to receiving sites when the Fukuyama Clean Center inKoriyama was damaged by typhoon no. 19 in 2019.

TRE HOLDINGS CORPORATION Integrated report 2022

72

Financial highlights (consolidated)

(FY)

Unit

Net sales

Ordinary profit

Profit attributable to ownersof parent(Millionsof yen)(Millionsof yen)(Millionsof yen)Company
name

2017

2018

2019

2020

REVER HD39,28536,681

28,37536,203TAKEEI

31,08432,271

37,71342,062

REVER HD

1,516

1,645

1,281

4,131

2021

TRE HD68,234(Millions of yen)

Cumulative net sales andoperating profit by segment

FY03/22 Full-year results
Net sales

Operating profit

Operating profit margin

Consolidated

68,234

7,659

11.2%

Waste treatment and recycling*1

25,146

5,113

20.3%

Resource recycling*2*3

24,068

2,787

11.6%

Renewable energy*4

12,617(305)–

Other businesses*1 Environmental consulting

7,102

441

6.2%

Adjustments

(700)

(376)

–

7,547
TAKEEI

2,292

1,814

3,025

3,893

REVER HD

2,264

1,268

1,217

3,135

4,742
TAKEEI

1,356

275

1,765

2,272

REVER HD

2,301

1,241

1,245

3,121

TAKEEI

1,459

318

1,813

2,438

REVER HD

14,45015,474

16,20918,731

Environmental engineering

Comprehensive income

Net assets

Total assets

Net assets per share

Earnings per share

Equity ratio

Return on equity(Millionsof yen)(Millionsof yen)(Millionsof yen)4,833

64,173TAKEEI

27,791

26,96028,27034,505

REVER HD28,271

27,74628,24430,561TAKEEI

67,141

71,04780,25787,806

REVER HD

833.70903.52946.46

1,093.74

TAKEEI

1,152.27

1,131.93

1,186.86

1,196.98

REVER HD

152.99

74.07

81.12

183.06

129,524

TAKEEI

57.72

11.92

76.65

89.07

REVER HD

50.5

55.8

57.4

61.3

TAKEEI

40.1

36.7

34.1

37.6

REVER HD

19.6

8.5

7.7

17.9

Cash flows from investing activities

Cash flows from financing activities

–

1.0
–

6.6
7.96

(Millionsof yen)73

TRE HOLDINGS CORPORATION Integrated report 2022

10,326+53.5%

9,300

-9.9%

10,150

+9.1%

9.2%

11.4%

+24.5%

9.9%-13.4%

10.4%

+4.9%

24,73825,146+1.6%

25,829+2.7%

27,028+4.6%

46,418+47.8%

47,100+1.5%

49,500

+5.1%

7.07

2,660

5,454

+105.0%4,361-20.0%

4,791

+9.9%

8.5%

11.7%

+38.7%

9.3%-21.2%

9.7%

+4.5%

11,457

12,617+10.1%

14,088+11.7%

15,151

+7.5%

7,401

REVER HD315

(1,713)(2,112)(65)

TAKEEI(7,003)(7,899)(7,963)(13,607)

Resource recycling*5 *6

Net sales(2,149)Renewable energy

Other businesses(3,107)
5,458
8,315

24,014
10,282

OperatingprofitOperatingprofit margin

325

(305)

–

388

–

865

+122.9%

2.8%

–

–

2.8%

–

5.7%

+107.3%

Net sales

6,828

7,102

+4.0%

7,893

+11.1%

8,841+12.0%

Operating

349

441

+26.4%

420

-4.8%

753

+79.3%

Operatingprofit margin

5.1%

6.2%

+21.5%

5.3%-14.3%

8.5%+60.1%Net sales

(962)

(700)

–

(710)

–

(2,520)–Operatingprofit

(76)

(376)

–

(655)

–

(1,095)–

Environmental engineering profit
Environmental consulting(3,700)*Fiscal year-end REVER HD: June TAKEEI: March*REVER HD was delisted in FY03/2017 and FY03/2018, so its price-earnings ratio is not listed.

6,727

31,4085,354

11,028+4.0%

OperatingprofitOperatingprofit margin

2,916

8,922

98,000Net sales

4,439

12,661+4.0%

7.5

TAKEEITAKEEI

94,200-3.4%

11,0176,238+23.3%

17.9%

5,249

6,936

90,584

-8.9%

1,973

8,049

73,470

18.5%

1,369

REVER HD

YoY

+45.0%

Adjustments
Cash and cash equivalents at endof period

Apr. 2023Mar. 2024

20.3%

2,612

4,714

YoY

14.0%

REVER HD

1,243

Apr. 2022Mar. 2023

+1.0%

14.5

4,097

YoY

4,836

10.2

TAKEEI

Apr. 2021Mar. 2022

-6.4%

61.5

(558)

Apr. 2020Mar. 2021

4,786

22.5

(769)

FY03/24 Third year of
Medium-term plan

+47.4%TAKEEI

1,331

FY03/23 (Forecast)5,113

Waste treatment andrecycling

17.9

REVER HDFY03/22 (Actual)*5*7

3,468(times)(Millionsof yen)Net sales

9.9
5.1

OperatingprofitOperatingprofit margin

FY03/21(Actual)*5

OperatingprofitOperatingprofit margin(%)(Millionsof yen)Consolidated

48.3

(%)

REVER HDCash flows from operating activities

Net sales

110.79(Yen)(Millionsof yen)(Millions of yen)

Movement in results and plans(by segment)
1,218.70(Yen)

TAKEEI

Price-earnings ratio*1 The Accounting Standard for Revenue Recognition, etc. has been applied from the beginning of Q1 FY03/2022.
 or the resource recycling business, the consolidated results of REVER HOLDINGS CORPORATION, which is the acquired company for accounting purposes in the*2 Fbusiness integration, reflect only the results for the six-month period from October 1, 2021 to March 31, 2022.
*3 The resource recycling business includes JPY89 million of goodwill related to the business integration for the six months from October 1, 2021 to March 31, 2022.
*4 The renewable energy business includes JPY376 million of goodwill associated with the acquisition of Green Power Ichihara Co., Ltd.

*5: Although REVER HD’s fiscal year ends in June, since it is necessary to compare it to other businesses across the same period of time to make it possible tounderstand the actual state of progress of the medium-term business plan, REVER HD’s results data from April to March the following year is displayed underresults for resource recycling businesses.
*6: The resource recycling business includes goodwill amortization (JPY89 million/year in FY03/2022, JPY178 million/year from FY03/2023 onwards) related tothe business integration.
*7: The renewable energy business includes goodwill amortization of JPY376 million associated with Green Power Ichihara Co., Ltd.
TRE HOLDINGS CORPORATION Integrated report 2022

74

Non-financial highlights (consolidated)

Environmental data
Energy investments and CO2 emissions in the TRE Group’s business activities
Energy input intobusiness activities
Electricity

Business activities

Scope 1
28,467
8.3%

Sales

584kl
1,150,000m
192,000m

LPG

Type-Aheavy oil202kl

Acetylene

3,413kg(MWh)
700,000

600

Scope 3291,200
84.6%

100

50

2019

2020

CO2 emissions per resource received (per unit)(t-CO2/t)
0.040

0.040
0.037
0.035

0.030

(persons)

Male

FemaleWaste treatment
and recycling
businessResource
recyclingbusiness

Renewableenergy business

Other

All companies(shared)*

2,103

1,711

392

899

696

165

293

50

*All companies (shared) refers to employees in the company’s management departments such as the general affairs department and accounting and financedepartment, and in planning departments such as the corporate planning department.

Employment status

Ratio of female workers by job classification

Average age (years)

43.6

General employee

20.6

Average length of employment(years)10.4

Manager

5.1

Officer

14.2

0.010

(persons)

Childcare leave taken

Male

Female

Total

Male

Female

Total

0

15

15

8

23

31

Health and safety (frequency and severity)
54,2502019

54,171

2020

TRE HOLDINGS CORPORATION Integrated report 2022

Frequency rate

Severity rate

TRE Group

2.78

0.05

Average for the general and industrial waste treatment industry*

7.36

0.17

55,643
0

2021

2019

2020

2021

*CO emissions associated with energy use ÷ resources received
Resources received: Volume of valuables and waste received by the Group
2

(%)

21

Leave taken before and after childbirth*The TRE Group generates more renewable energy than the amount ofelectricity used by each Group company.

75*Recycling efficiency: Resources recycled ÷ (Resources recycled + Waste generated)
× 100*Waste generated: Volume of resources received that could not be recycled andwas disposed of

Number of
employees

300,000

180,571

0

2021

2020

Childcare leave

0.020

0

2019

New female graduates hired (%) 57.1 (Average in past 5 years: 41.6)

400,000

100,000

0

2021

Breakdown of employees

Persons with disabilities
employed (persons)

200,000

101

Social data

*CO2 emissions factor: Electricity 0.000443 t-CO2/kWh609,633

500,000

129

1,225

*Resources received: Volume of valuables and waste received by the Group*Resources recycled: Volume of resources received that could be used asrecycled resources

600,000
504,966

1,311

1,275

117

0

Manufactureand sale ofenvironmental
equipments

91.5

200

Woody biomass
power generation

Power consumed

1,313

92.4

50

t-CO2

Environmental
analysis

91.1

(%)
100

Recycling efficiency

400

344,317

Other environmental
businesses

Waste generated

1,411

Total CO2 emissions

Renewable energy business

Power generated(1000t)150

Resources recycled

1,000Intermediate
treatment

Trends in power generation and consumption

Waste generation and recycling efficiency

1,200

800

(landfill)3

Scope 2
24,650
7.2%

Collection andtransportation

Final disposal

3

224kl

Kerosene

Resources received

1,400(Recycling)

LNG(1000t)
1,600

1,452

8,597kl

Gasoline

Breakdown of CO2 emissions

Waste treatment andrecycling businessResource recycling business

55,643Mwh

Diesel oil

Resources received and recycled*Source: Health and Safety Committee, Japan Federation of Industrial Waste Management and Recycling Associations, “Occurrence of Occupational Accidents in the
Industrial Waste Treatment Industry” (July 2022).

TRE HOLDINGS CORPORATION Integrated report 2022

76

Group profile

Company information (as of March 31, 2022)
Company name: TRE HOLDINGS CORPORATION

Share information (as of March 31, 2022)

TRE Group locations (as of September 1, 2022)
We have approximately 60 locations, mainly centered on the
Kanto region in Japan where there are many manufacturing sites.
We are building a more solid platform by setting up locations nearregions where industrial waste generated.

Stock exchange listing: T okyo Stock Exchange Prime Market(Moved on April 4, 2022)

Date of establishment: October 1, 2021

Securities code: 9247

Address: 1
 5th floor of Tokyo Sankei Bldg., 1-7-2 Otemachi, Chiyoda-ku,
Tokyo, 100-0004

1 share-trading unit of stock: 100 shares
Total authorized shares: 200,000,000 shares
Total shares issued: 52,610,712 shares(including 918,593 shares in treasury stock)

Contact information: Tel: 03-6327-2620 (main)
Fax: 03-3277-3273

Number of shareholders: 12,043
Capital: 10 billion yen

Overseas location: Thailand

Settlement date: March 31

Group businesses: Waste treatment and recycling, resource recycling,
renewable energy, environmental engineering,
environmental consulting

Interim dividend record date: September 30

Number of employees: 2,103 employees (on a consolidated basis) itsubishi UFJ Trust andAdministrator of Shareholders’ Register: M
Banking Corporation

Major shareholders (as of March 31, 2022)*

Shareholder distribution (as of March 31, 2022)

Name or titleof
Shares held Percentage
owned(1,000 shares) shares(%)

Year-end dividend from surplus (dividends) record date: March 31
Ordinary general meeting of shareholders: June

Other individuals

Financial institutions(11,681 people)(16)

190,504

173,37136.36%

33.09%

share-trading units

share-trading units

The Master Trust Bank of Japan,
Ltd. (trust account)
Custody Bank of Japan, Ltd. (trust
account)

8,098

15.67

7,134

13.80

Besterra Co., Ltd.

2,570

4.97

Number ofshareholders

Mamoru Mitsumoto

2,116

4.09

12,043Government of Norway (standing
proxy: Citibank, N.A. Tokyo branch)
TREHD Employee Shareholding
Association

1,510

2.92

1,191

2.30

Toru Suzuki

1,050

2.03

Takao Suzuki

1,000

1.93

Overseas
corporations

701

1.36

93,087

Custody Bank of Japan, Ltd.
(securities trust account)
KIA Fund 136 (standing proxy:
Citibank, N.A. Tokyo branch)

610

1.18

Total shares held

523,989

share-trading
units
Financial instrumentbusiness operators(170)

share-trading units

17.77%

Other corporations(138)

58,297
share-trading units*The company owns 918,593 shares as treasury stock, but it is excluded fromthe list of major shareholders above.

(38)

Waste Treatment & Recycling Business

8,730
share-trading units

1.67%

11.13%

Trading volume

Share price(1,000 shares)(yen)

10,0002,000

Green Arrows Tohoku Co., Ltd.

REVER CORPORATION(18 locations)Green Power Ichihara Co., Ltd.

Sunny Metal Corp.

Takeei Green Recycling Co., Ltd.

Gypro Co., Ltd.

ITSUMO Corp.

Takeei Denki Co., Ltd.

Takeei Energy & Park Co., Ltd.

HIDAKA SUZUTOKU (Thailand) Co., Ltd.

Ikeda Construction Materials Co., Ltd.
Takeei Metal Co., Ltd.
EQUAL ZERO Inc.
Shinshu Takeei Co., Ltd.

1,000

2,000

77

Tamura Biomass Power Generation
Co., Ltd.

Green Arrows Kantou Co., Ltd.

4,000

0

REVER HOLDINGS CORPORATIONJW GLASS RECYCLE CO., LTD.

1,500

Monzen Clean Park Co., Ltd.

0
October November December January
2021
2022

TRE HOLDINGS CORPORATION Integrated report 2022

February

March

October November December January
2021
2022

February

March

TAKEEI Forestry Co., Ltd.

TAKEEI CORPORATION (10 locations)
Tohoku Koueki Recycling Technology
Co., Ltd.

8,000
6,000

Resource Recycling Business

Hokuriku Environmental Services Co., Ltd.

Renewable Energy Business
Tsugaru Biomass Power Generation
Co., Ltd.
Tsugaru Eneveg Co., Ltd.

Environmental Engineering Business/
Environmental Consulting BusinessFuji Car Manufacturing Co., Ltd.
Environmental Conservation Co., Ltd.
Earth-Appraisal Co., Ltd.

Daisen Biomass Power Generation
Co., Ltd.
Hanamaki Biomass Power Generation
Co., Ltd.
Hanamaki Biomass Chip Co., Ltd.

TRE HOLDINGS CORPORATION Integrated report 2022

78