1. Growth Strategy

ENVIPRO Group Sustainability Report 2023

8Materiality Items (Priority Issues) to Realize Our Mission
Need to Respond
01 AtoPressing
Climate Changeto Achieve Carbon
02 Looking
Neutrality by 2050

Various social issues in Japan and overseas are

Society is likely to press more firmly for carbon

The ENVIPRO Group’s goal is to achieve a sustainable society by “using every material repeatedly, preserving

leading to unsustainable conditions. In 2023, average

neutrality as climate change advances. Achieving

their value for as long as possible.” We promote RE100 and produce green materials*4, including ferrous scrap

global temperatures are expected to reach all-timecarbon neutrality requires not only the electrificationand other non-ferrous metals and minor metals that are necessary to support the electrification of economic

highs, sparking discussions about the onset of an eraof economic activity and the transition to renewable

activities. By integrating the production of these green materials into arterial procurement and manufacturingof the global boiling—clearly more severe than global

energy for power consumption but also theprocesses, we aim to realize a circular economy and establish a supply chain that allows products andwarming.

reassessment and intentional redesign of productmaterials to continue circulating while maintaining their value.

The external environment around us is also

lifecycles. This means taking a circular economy

The market related to the circular economy is expected to expand significantly both in Japan and overseas. In

undergoing major changes.

approach to manufacturing, usage, and disposal.

Japan, the market is projected to reach a value of ¥80 trillion by 2030 and ¥120 trillion by 2050.

Societal Trends Surrounding
the ENVIPRO Group

Major emission sources, steel,aluminum, cement, plastics, food Total emission
Total emission
reduction
reduction

Long-Term Trends

GX

GREEN TRANSFORMATIONThe Big Picture on Greenhouse Gas Emissions:
Tackling Overlooked Emissions*1
Current
total emissions
Current
total emissionsDX

DIGITAL TRANSFORMATION

EnergyEnergyMedium- and Short-Term Trends
Demand for the establishment of a green valuechain
Growing international competition for resources
Surfacing social issues related to waste plastics
Data utilization in non-IT businesses
Increase in utilization of IoT, AI, robotics
Increasing competition for human resources

ProductsProducts

Identifying Materiality Items (Priority Issues) as a Company That Leads the Circular Economy
ThemesCircular
CirculareconomyeconomyProduction ofGreen
Materials

5555
% %

New technologies,
New technologies,CCS,change
food change
CCS, food

Zero emissions
Zero emissions

According to the Ellen MacArthur Foundation *2, 55% of all
greenhouse gas emissions can be reduced through renewableenergy conversion, while the remaining 45% are attributed to themanufacturing and use of products. Reducing this 45% can beaddressed through a circular economy approach. In Japan, it isalso estimated that in some sectors resource circulation has thepotential to reduce as much as 36% of emissions that contributeto greenhouse gases*3.

Materiality Items (Priority Issues)

Corresponding SDG Targets

Increasing demand for green materials
in the supply chain

in 2050
in 20504545% %455555% % 45%%to Expand the03 Working
Circular Economy1

Increasing demand for ferrous scrap due to buildingof additional electric furnaces

Increasing demand for nonferrous metals and minormetals due to electrification
3 Promotion of advanced resource circulation of waste
plastics
2Productivity,
DX

Reducing labor required in theproduction process, promotion of datautilization in business activities

Personneldevelopment

Investment in human resources topromote business activities*1 Source: “Completing the picture: How the circular economy tackles climate change,” the Ellen MacArthur Foundation*2 E llen MacArthur Foundation: This organization was established in the United Kingdom in 2010 with the vision of accelerating the transition to a circular economy. Since its establishment, the foundation has engaged in various activities, including awareness campaigns through information dissemination and the establishment of a global network transcending national boundaries.
*3 Source: “Reference Materials on the Second Progress Check of the Fourth Basic Plan for Establishing a Sound Material-Cycle Society and the Circular Economy Process Chart,” Ministry of the Environment*4 Green materials: Materials made from terrestrial resources (waste) in ways that do not produce greenhouse gases or produce very little greenhouse gases (recycled raw materials and recycled materials)

1. Growth Strategy

ENVIPRO Group Sustainability Report 2023

9The Value Creation Process

Mission Statement“Contribute to Create a Sustainable Society”
This is the ENVIPRO Group’s significance in the world and its purpose and aspirations until 2050.

Business Model

Materiality Items (Priority Issues)
Increasing demand for green

Strategy Concept

P8materials in the supply chain

Reducing labor required in the production

process, promotion of data utilization inbusiness activities

Targets of the Medium-Term Management
Plan (Mid-Term Plan 2028)
P10

Financial Capital

Lead a circular economy

Net sales

Investment in human resources to promote

Ordinary profit

business activities¥80.0billion¥5.0billion

13.0%
9.0%

ROEInputs(Year ended June 2023)

Financial Capital
Total assets

CE supporting
local communities

CE supporting
manufacturing

48.6%

Manufacturing CapitalGroup companies
Domestic plants
Shipping ports
Overseas locations

1412134

Capital investment ¥4.6billion
Intellectual Capital
Patents held

19632

Natural Capital
Resource recovery rate 94.3%
Electric power fromrenewable sources
86.5%
Reduction in
CO2 emissions
50.1%

Manufacturing Capital¥20.0billion• LIB recycling business• Introduction of new technology
The ENVIPRO Group will take the lead in building momentum for the circular
economy throughout Japan and contribute to create a sustainable society.

Strengths of the ENVIPRO Group

Lithium-ion Battery
Recycling Business

Global Trading Business

Growth Platform

OthersImage for the organization:
A disciplined group of autonomous individuals with emergent abilities

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

Etc.

Intellectual Capital

P42

P38

Laboratory expansion

Socialvalue

Environmental
value

Natural environment
 elping to create aH
decarbonized society

Local Community
 evelopment of local resource recycling
Dfacilities
Employment andsolutions toemployment issues

Business Partners
 afe and secure response toS
various needs in a
decarbonized society

Employees

Development ofP37   100 business promoters
Promotion of diversity

P38

Natural Capital
RE100 by 2030
Carbon neutrality by 2050

P3

Economicvalue

New technology development

Human Capital

Welfare Service Business for People
with Disabilities
Environment Management
Consulting Business

Management Platform• Environmental improvement• M&A•Corporate culture•Technological capabilities •Trading capabilities•Logistics capabilities •Inventiveness•Sales capability•Productive capacity •Collection capability
Resource Circulation Business• Promotion of DX
P39

Laboratory expansion
Human Capital
Employees (consolidated)(Targets for the year ending June 2028)

Investment¥33.6billion

Equity ratio

ROIC

Value Provided

P31

P roviding an environment
where diverse humanresources can work withvigor and enthusiasm

Shareholders and Investors
Enhancing shareholder
returns throughsustainable growth