2. Business

17Resource Circulation BusinessResource Circulation Business

Sales (left scale)

Sales (leOrdinary profit (right scale)(Billions of yen)(Billions of yen)

30.0

6.0

60.0

5.0

50.0

4.0

40.0

3.0

30.0

2.0

20.0

5.0

1.0

10.0

0.0

0.0

0.0

25.0

Global resource consumption is on the rise, highlighting numerous environmental
issues, including resource scarcity and excessive waste generation.
The ENVIPRO Group aims to promote a circular economy by producing and incorporating

Resource Circulation Businessgreen materials into the supply chain.

20.320.0

14.2

15.0

18.8
2.75

2.08

10.0

FY06/211.56

FY06/22

Sales (left scale)

FY06/23

Flow of Collection for Gold, Silver, and Copper Sediment Sludge(Billions of yen)

2.0

Amid growing concerns over carbon neutrality and resource depletion, the concept of a circular economy is gaining
attention worldwide, particularly in Europe. This has led to a renewed recognition of the importance of metal recycling,which has been a longstanding focus of the ENVIPRO Group.
The ENVIPRO Group entered the business of recycling composite materials with the introduction of a large shredder. AtECONECOL Inc., we crush and process up to 5,000 tons of raw materials per month, including automobiles, copiers,vending machines, and small household appliances. Through magnetic separation, we collect ferrous scrap, while
non-ferrous metals and plastics undergo repeated physical sorting in subsequent processes to recycle each resource
as green materials.

1.34

New Recycling Plant Begins Operation
ECONECOL Inc. has commenced operations of its state-of-the-art recycling
plant in the city of Fuji, Shizuoka Prefecture. The RE100 plant is designed toconsider both the internal environment, such as working conditions, and theexternal environment, including landscape. Through processes such as wet
and dry density separation, size separation, and sensor-based sorting, theRE100 plant efficiently and accurately sorts non-ferrous metals, preciousmetals, and plastics.

Collecting Gold, Silver, and Copper Sediment Sludge*1 from Incinerator Ash
Municipal waste incineration ash contains trace amounts of precious metals. Of these, riddling ash*2, which falls
from the grates of stoker-type incinerators, contains concentrated precious metals. The ENVIPRO Group collects
gold, silver, and copper sediment sludge from this riddling ash and other sources.
*1 Gold, silver, and copper sediment sludge is a mixture of gold, silver, copper, platinum.
*2 Riddling ash is ash that falls through the grate of a stoker furnace when waste is incinerated.

Valuablepurchase

Riddling ash

Concentration
0.5
0.35
Gold, silver, and copper
sediment
0.0 sludge

In December 2022, Kuroda Recycle Co., Ltd. commenced operations of the (0.5)
Group’s third plant for the collection of gold, silver, and copper sedimentsludge. This plant enables the collection and resource utilization of gold,
silver, and copper sediment sludge, which had previously been difficult tocollect and had been disposed of as waste, including from riddling ash andresidual waste from local government's incinerators, as well as fromresidual waste from automobile shredding.

0.57

0.47

1.0

Incineration
facility

0.75

0.6
0.5
0.4

0.

0.3

Sale

0.25

Non-ferrous metal
refining company 0.00

0.2(0.25)

0.0(0.08)
FY06/21F(Billions of yen)

0.50

FY06/22

FY06/23

Cleaning and Dismantling Work at Buildings and Plant Facilities Across JapanThe ENVIPRO Group provides a one-stop service for dismantlingwork and ancillary services, including the cleanup of debris frombuildings and grounds, preliminary investigation of asbestoscontaining building materials, CFC collection, and building
dismantling work. In fiscal 2022, we increased the number ofprojects and expanded the area in which we engage in thedismantling business through collaboration with financial
institutions.
Circulating collected resources through the circular economy
helps reduce costs and environmental impact.

1.00

1.63

1.531

Sales (leOrdinary profit (right scale)(Billions of yen)

Recycling of Metals and Waste(Billions of yen)

0.1

F2. Business

ENVIPRO Group Sustainability Report 2023

Resource Circulation Business18

Resource Circulation Business
Expanding Our Recycling of Wind Power Generation Facilities

ENVIPRO HOLDINGS Inc. and NEWSCON Inc. have collaborated with the Akita NorthernHappinets, a professional B.League basketball team, to set up a Mottainai BOX tocollect resources in the city of Akita. The station aims to collect cardboard, magazines,

Japan’s northern island of Hokkaido already has a large numberof wind power generation facilities, and the construction ofoffshore wind power generation facilities is also underway. The
removal of facilities that have been in operation for over 20 years
due to aging is increasing year by year. Kuroda Recycle Co., Ltd.
possesses advanced processing facilities and is actively engaged
in the recycling of wind power generation equipment. In
particular, we actively recycle turbine blades from across thecountry, including from outside Hokkaido. We recycle the metals
and special alloys used in this equipment, as well as wasteplastics and hard-to-process materials.

newspapers, and metal for recycling, with a portion of the proceeds from recycling
being returned to support the activities of the Akita Northern Happinets.

Production of Low-Carbon Raw Fuel from Waste Plastic (RPF)
RPF* is a solid fuel produced by compressing difficult-to-recycle waste plastics
and paper waste. This environmentally conscious fuel offers substantially lower
CO 2 emissions than fuels such as coal, while providing stable quality.

A Platform for Collecting Community Resources
Mottainai BOX and Community-Based Initiatives
Items Collected in the Mottainai BOXSYN ECO Inc., headquartered in Matsumoto, Nagano Prefecture, isactively engaged in local community initiatives through its Mottainai
BOX and other regionally integrated efforts. Across the Chushin
Old clothes Waste paper Aluminum cans
district of Nagano Prefecture, the company has set up 23 Mottainai
BOX Stations, which serve as collection points forcommunity resources. SYN ECO also operates aresource recycling facility in the city of Azumino, called
SYN ECO Plaza Azumino. The convenience of thesestations and the plaza has led to an annual increase inthe volume of resources collected, and a portion of theearnings from the collected resources are returned tothe local community. We aim to become a trusted entity
in the region by providing attentive support and prompt
responses to the concerns and needs of local residents.
Moving forward, we will actively engage in regional
collaboration and contribute to the circular economy
that supports the local community.
Mottainai BOX

ECONECOL Inc. produces approximately 23,400 tons of RPF annually andRPF
continuously supplies it primarily to paper companies as boiler fuel. The factoryis currently in production 24 hours. ECONECOL is looking to expand the customer base and establish a system toincrease production further.
* RPF, which stands for “Refuse derived paper and plastics densified Fuel,” is a high-grade solid fuel made mainly from collected paper and plastics(mainly from industrial waste) that are difficult to recycle as materials.

Metal

Expanding Reused Items, Such as PC Components
Instead of disposing of used electronic equipment as waste, we strive to makeeffective use of its resources through reuse and recycling, thereby reducingwaste.
In fiscal 2022, we began extending our efforts beyond the recycling of personal
computers to include the dismantling and extraction of CPUs and memory forcomponent reuse. Moving forward, we will focus on refurbishing collected
laptops and undertake various initiatives to maximize the resource value ofelectronic devices. We are committed to promoting a CE supporting
manufacturing, and we plan to further expand our initiatives to other products, in addition to PCs.
*Refurbishing is the process of collecting defective products and bringing them back to life. We refurbish a wide range of PCs, from those that are no longerusable to those that are nearly new, thereby helping to reduce waste.

2. Business

ENVIPRO Group Sustainability Report 2023

19

Resource Circulation BusinessResource Circulation Business Manufacturing Polymer ProductsWorking with Toyoda Gosei Co., Ltd.,
to Realize a Circular Economy Model for Rubber
Due to its nature, rubber is known to be difficult to recycle, and the mainstream methods of disposal include
thermal recovery and landfill. To promote the circular economy of rubber products, Toyo Rubber Chip Co., Ltd. iscollaborating with other members in its supply chain to work towards the realization of a circular economy forrubber products. The company’s headquarters factory operates on 100% renewable energy. In line with the visionof becoming carbon-neutral by 2050, Toyo Rubber Chip Co., Ltd. manufactures low-carbon products using lowcarbon processes.

23

Expand circular economy products andsales channels

Grow the tire business, which
represents the largest rubber market

realizing a circular economy model that achieves tire-to-tire recycling.

Leveraging the Polymer Circular Laboratory to Achieve a Circular Economy
in the Manufacture of Polymer Products
By utilizing its expertise in the regeneration of rubber and resin products, the Polymer Circular Laboratory provides
a one-stop service for a series of processes involving the development of recycled products that in the past wereconducted separately.
We are accelerating the flow to molded prototypes while reducing time and effort by centralizing the contact point
for coordination with vendors for each process, technology selection, pre-processing, and prototype production.
We can quickly share our vision for recycled products within the company, which allows us to accelerate theproduct development cycle. Furthermore, having a concrete vision also helps promote sustainability within theorganization.

In fiscal 2022, Toyo Rubber Chip started manufacturing cushion mats using recycled
rubber scraps Toyoda Gosei Co., Ltd. generated in the process of producing automotivecomponents.

➡
Rubber scrap

1
Increase in-house production of therubber product supply chain

Cushion matsCircular Economy for Polymer Product Manufacturing

Toyo Rubber Chip Co., Ltd., and Nitto Kako Co., Ltd.,
Cooperate in the Rubber Product Supply Chain
In April 2023, Nitto Kako Co., Ltd. becamea part of the ENVIPRO Group. A pioneer inrecycled rubber, Nitto Kako will collaborate
with Toyo Rubber Chip Co., Ltd. to enhancepolymer product manufacturing. Recycled
rubber is not widely used in tire
manufacturing at present, as braking
performance and other requirements
demand high-quality rubber.
However, we are leveraging Groupsynergies and taking on the challenge of

Input of renewable resources

Synergies between Toyo Rubber Chip and Nitto Kako
Procurement of
raw materials

Rubber-related
manufacturers, etc.

Recycled
raw materials
for productsE fficient collection forrecycling

Production

recycled products and services

Reduction of production loss byIn-plantreuseCollectionRecycling
Reinjection of recycledresources

ProcesswasteDesign of circular economy model/

DesignConversion to horizontal recycling
Ensuring traceability

optimization of manufacturing
processes

Reconditioning
Remanufacturing, etc.

Reuse

Waste tires

Retail/distribution
ResaleSelection of environmentallyfriendly products

Tire compounds

Pulverization

Rubber compounds

Desulfurization

Sorting

Use
Reuse
Maintenance

Renewable energyReduction of sales loss

2. Business

ENVIPRO Group Sustainability Report 2023

20

Resource Circulation Business

Flow of Treatment/Processing in the Resource Circulation Business
INPUTSOUTPUTSRECYCLING

Above-ground resources(waste)Recreating resource
value

Paper waste, sponges, light dust, and lightweight plastics

Materials are finely shredded forrecycling.

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

Materials for
cement production

Incineration

Magnetic separation
Waste is sorted by using
vibration and upward airflow.

Ferrous scrap

RPF

Shredded steel scrap

Dry specific gravity
separation
Agitation
propellers

Automobiles
Photocopiers
Microwave ovens
Vacuum cleaners
Smartphones, etc.

Automobiles

Air power

Air separation

FerrousmetalsPaper waste,sponges, and light
dust are removed
from the shredded
mixture using airseparators.

Nonferrous metals

Electronic circuit boards

Separation

Small home appliances

Light particles

Heavy particles

Refuse paper andplasticfuel (RPF) plantLight particles

RPF and other solid fuel are
produced from waste.

CopperLiquidAluminum

Heavy particles

Wet specific gravity separation
Eddy current separation

The specific gravity of a liquid that combines water and a specific metal powder isadjusted according to the items to be extracted, separating items into those thatfloat and those that settle.

Falling non-magnetic metals
are sorted using magnetic
repulsion.

Gold, silver, and copper
sediment sludge

FerrousmetalsRiddling ash

REUSE

REMANUFACTURING

GLOBAL TRADINGREMANUFACTURING

Plastics for fuelExport overseas
Airplanes Used cars
ExtruderPlastics

RPF (solid fuel)Materials manufacturers

Plastic pellets
Aluminum

Tires

Copper

Gold, silver, and copper
sediment sludge

Plastics for fuelExtruded materials

Rubber chips