TRE HOLDINGS CORPORATION Integrated report
TRE HOLDINGS CORPORATION Integrated report

2023
2023

TRETREHOLDINGSHOLDINGSCORPORATIONCORPORATION
Integrated
Integrated
reportreport2023
2023
Publisher
Publisher
TRE TREHOLDINGSHOLDINGSCORPORATIONCORPORATION
15th15th
floorfloorof Tokyoof Tokyo
Sankei
SankeiBldg.,Bldg.,
1-7-21-7-2
Otemachi,Otemachi,Chiyoda-ku,
Chiyoda-ku,
Tokyo
Tokyo

WebsiteWebsitehttps://tre-hd.co.jp/enhttps://tre-hd.co.jp/en

2023
2023

Integrated
Integrated
reportreportEditorial policy

Contents

Welcome to the integrated report of TRE HOLDINGS CORPORATION,
a comprehensive environmental management company.
On October 1, 2021, TAKEEI CORPORATION and REVERHOLDINGS CORPORATION (currently REVER CORPORATION)*
established TRE HOLDINGS CORPORATION as a joint holding
company and integrated their businesses.
The aim of this business integration is to allow the twocompanies, who share the same commitment to theconservation of the global environment, to carry out thelarge-scale investments and technological development
needed to address pressing issues such as reducing CO2
emissions and recycling waste plastic, and also allow them toleverage each other’s management resources in order tocontribute to the creation of an efficient recycling society anda carbon-neutral society as the leading corporate group in
Japan’s environmental industry.
Our Integrated Report 2023 aims to communicate the
TRE Group’s medium- to long-term vision and strategy, as wellas the progress we have made in the second year since our
integration, from both a financial and non-financial perspective.
* REVER HOLDINGS CORPORATION was integrated by REVER CORPORATIONon April 1, 2023.

Introduction

Editorial Policy/Contents –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 01
TRE's Purpose—Why, What, and How ––––––––––––––––––––––––––––––––––––––––––––– 03
Highlights in 2022 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 05
Top Message –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 07
Naoto Matsuoka, Chairman and CEO

Scope of report

Mitsuo Abe, President and COO

Organizations covered

The TRE Group’s New Medium-term Business Plan and

TRE HOLDINGS CORPORATION and consolidated subsidiaries(including some affiliates accounted for by the equity method)

Financial Management Policy ––––––––––––––––––––––––––––––––––––––––––––––––––––––– 14

Period covered
April 1, 2022 to March 31, 2023
(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)”

Note regarding forward-looking statements
The information contained in this report, with the exception ofhistorical facts, constitutes forward-looking statements based on
certain assumptions, and represents the judgments of the Group's
management based on currently available information. Accordingly,
actual business performance and other information disclosed in the
future may differ due to a variety of factors.

Part 1The TRE Group Principles and Code of Conduct –––––––––––––––––––––––––––––– 16

Corporate Profile

Business model ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 19

TRE HOLDINGS CORPORATION’s value creation as acomprehensive environmental management company

Part 2
Vision and Strategy
Helping create an efficient recycling,carbon-neutral society

Value creation model –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 17
Overview of businesses by segment –––––––––––––––––––––––––––––––––––––––––––––– 21
Material issues –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 23

The Group’s long-term vision –––––––––––––––––––––––––––––––––––––––––––––––––––––––– 26
Status of medium-term business plan ––––––––––––––––––––––––––––––––––––––––––– 27
Feature 1
Strengthening collaboration with other industries –––––––––––––––––––––––––– 29
Feature 2
Exploring new potential—TRE Integrated Environmental Business –––––– 33
Feature 3
Further enhancing recycling business—strengthening glass
recycling capabilities –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 37

Japanese Publication Date

Overview of businesses by segment

September 1, 2023

(1) Waste Treatment & Recycling Business ––––––––––––––––––––––––––––––––– 39(2) Resource Recycling Business ––––––––––––––––––––––––––––––––––––––––––––––– 41

The TRE Group’s information disclosure(3) Renewable Energy Business ––––––––––––––––––––––––––––––––––––––––––––––––– 43(4) OtherTRE HOLDINGS CORPORATION

Environmental Engineering Business/
Environmental Consulting Business –––––––––––––––––––––––––––––––––––––– 47

TAKEEI CORPORATION

Toward an evolution in our business functions ––––––––––––––––––––––––––––––– 48

Part 3

Corporate governance –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 50

ESG

Environment –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 55

Strengthening ESG to solidify ourmanagement foundation
https://www.takeei.co.jp/en

List of executives ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 53
Response to climate change (information disclosure based on
TCFD recommendations) –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 57
Creating pleasant and fulfilling working environments ––––––––––––––––––– 59
Occupational health and safety ––––––––––––––––––––––––––––––––––––––––––––––––––––– 61Integrated report (FY2023 onwards)

Living and thriving together with the local community –––––––––––––––––––– 62

REVER CORPORATION

Corporate Data

https://tre-hd.co.jp/en01

TRE HOLDINGS CORPORATION Integrated report 2023

Financial highlights (consolidated) –––––––––––––––––––––––––––––––––––––––––––––––– 65Group profile ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 67

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

TRE HOLDINGS CORPORATION Integrated report 2023

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Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

WHY

Why was TRE HOLDINGS CORPORATION created?

To contribute to the creation ofan efficient recycling,carbon-neutral society.

TRE’s
PurposeHOW

How will the Company approach the task ofsolving environmental challenges?

To promote collaboration between
the waste management industry andother industries to create a new
industrial framework forthe circular economy era.

WHAT

What initiatives will the TRE Group undertake toachieve this?

In addition to the Waste Treatment &Recycling Business andResource Recycling Business,
our Renewable Energy Businesswill also serve as a growth driver.

03

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Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Establishing key performanceindicators (KPIs) for each of our
five material issues
See p. 23

Highlight
in 2022
The TRE Group’s FY2022
Activity Highlights

carbon-neutral society.

ROE

8.3%

8.1%

Resources received

Recycling efficiency

1,386,000tons

92%

Power generated byrenewable energy

Forest property area

Exploring new potential—TRE
Integrated Environmental
Business
See p. 33

technological capabilities, scale, and social credibility

leading efforts to create an efficient recycling society andOperating profit margin

Feature 2

wide range of measures to equip ourselves with theas a comprehensive environmental management company

7.5billion yen

See p. 29

to form TRE HOLDINGS CORPORATION. We implemented a

industries growing, the TRE Group is increasing its presence

90.7billion yen
Strengthening collaboration
with other industries

TAKEEI CORPORATION and REVER HOLDINGS CORPORATIONWith the number of inquiries we receive from other

Operating profit

Feature 1

Fiscal 2022 marked the second year since the integration ofrequired to play a leading role in a circular economy.

Net sales

Feature 3
Further enhancing recycling
business—strengthening glass
recycling capabilities
See p. 37

TAKEEI Forestry Co., Ltd.:
Providing fuel for renewableenergy generation andhelping revitalize Japan’s
forestry industry

570GWhApprox.

400ha

See p. 4405

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Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Top Message

Two years on from our business integration,
we have achieved synergies beyond
our expectations

short years, which I believe has enabled us to transform and—Around two years have passed since the businessour business scale, I believe we are earning greater

integration of TAKEEI and REVER Holdings how do you viewrecognition and attention from society, as well as greater

the results to date?

trust. As this trust in the TRE Group grows, we are beginning

evolve as an organization.
Abe As we have developed capabilities commensurate withto see synergies develop not only between the two integrated
Matsuoka From a quantitative standpoint, our businesscompanies, but also with other companies, and this isperformance has fluctuated due in part to changes in the

beginning to turn into a groundswell affecting the entire

operating environment, including the protracted conflict

waste management industry.

between Russia and Ukraine, which has sparked concerns
over the balance of energy supply and demand as well as

addressed, we are making solid progress.

Further strengthening functions and expanding
scale as a “comprehensive environmental
management company” that plays a central
role in realizing an “efficient recycling society”
and a “carbon-neutral society”

Abe The integration of TAKEEI, which excels in industrial—Could you explain once again the direction the TRE

waste treatment—particularly construction waste—andGroup aims to take?

economic security. However, from a qualitative perspective, I
believe we have achieved even more than we initiallyenvisioned. Although there are still issues that need to be

REVER, which is strong in metal recycling, including
Matsuoka Our biggest achievement over the past two years

in the waste management industry could have envisioned. In

has been the development of a long-term growth strategy.

this sense, I believe this integration had a major impact

When we integrated the two companies, we set the key

insomuch as it signaled that the industry will undergophrase “comprehensive environmental management

major change.

company,” which reflected our intention to transform from an

Matsuoka I think the integration had a considerable impact

industry that intakes, treats, and disposes of waste to one thaton the industrial community as a whole. In the past, the waste

generates resources from waste. In 10 or 20 years, I believe

management industry had been largely comprised of small

there may no longer be a distinction between the wastecompanies, who in many cases have proven insufficientmanagement industry and other industries. The TRE Group

partners for other industries, which tend to be dominated bywill likely add business areas similar to those of otherlarge companies such as manufacturers, due to the large gap

industries to its business portfolio, and other industries may

in the scale of their respective operations. I am confident thatincorporate operations similar to waste management

the larger-than-expected increase in the number of inquiriescompanies, such as waste disposal, into their own

we have received from other industries over the past two

businesses. Rather than thinking in terms of “waste

Naoto Matsuoka

Mitsuo Abe

years indicates that the integration has helped us expand ourmanagement company” or “other industry,” our vision and

Chairman and CEO

President and COO

corporate scale and that we are increasingly being recognized

growth strategy for the TRE Group is to transform into

as an equal partner to other industries.

environmental company that plays a central role in an

Abe We are beginning to see synergies generated by theefficient recycling society and carbon-neutral society.

integration, such as collaboration between businesses,

Abe An efficient recycling society and carbon-neutral

emerging in a variety of areas, and this is a testament to thesociety will contribute not only to efficient use of resources

dedicated efforts of the employees of both companies.

and reduction of final disposal of waste, but also to energy

Although from an employee perspective, both the scope ofconservation and climate change mitigation. Looking at

work and workload have increased significantly following therecent societal trends, Japan has set a goal of reducing

integration, I feel that the heightened sense of anticipation forgreenhouse gas emissions by 46% compared to the fiscal

the future has proven a major motivator for our team.

2013 level, in line with the targets for 2030 set out in the Paris

Matsuoka Typically, the integration of two companies is

Agreement, and society is working as a whole to achieve thisaccompanied by tension between the respective sides.

objective. Although momentum has slowed somewhat

However, the employees of both companies have worked

recently due in part to the conflict between Russia andtremendously hard to accomplish the integration in just two

Ukraine, this trend must not be halted. As the TRE Group's

Accelerating co-creation between industries
in order to further evolve as a comprehensive
environmental management company

07

automobiles and home appliances, is something that no one

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Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Top Message

business is directly linked to reducing the environmental

March 31, 2026, as quickly as possible and strive to further

Business enjoyed a favorable business environment andand REVER's Resource Recycling Business, while pursuing

impact of society as a whole, I believe we must commit to

expand in scale.

performed strongly, achieving all numerical targets. However,growth across our multifaceted recycling business whichbecoming a leader in the environmental field in order to help

Matsuoka Previously, the TAKEEI Group and the REVER

in the second year, ended March 31, 2023, the businessencompasses collection and transportation, intermediatesociety accomplish this goal ahead of schedule.

Group were the only operating companies in the TRE Group.

environment shifted rapidly, and we unfortunately fell short ofprocessing, and recycling.

Matsuoka Looking at recent initiatives by companies, I feel

In addition to achieving growth in both of these Groups, in

our targets.

Matsuoka In order to pursue growth in the recyclingthat companies in other industries have a greater sense oforder to achieve further scale expansion, we need to bring(business, collaboration between the waste management

urgency and are moving more quickly than waste

more partners on board. There are still areas of the waste

Abe From a long-term perspective, the accelerating shiftindustry and other industries will be key, as the products

management companies such as ourselves. In many cases,

management industry in which we are not yet involved, and I

toward an efficient recycling society and a carbon-neutral

recycled by the waste management industry are utilized byother companies have started working on initiatives that

believe that proactively expanding the Group throughsociety due to increasingly serious global environmental

companies in other industries, such as manufacturers.

should ideally be led by waste management companies. To

mergers and acquisitions with a focus on these areas willproblems, and the growing importance of environmental

stay abreast of these developments, we must accelerate ourhelp drive our growth as a comprehensive environmental

management, will serve as a tailwind for the Group's business.

significant progress in this area. For example, in theefforts to become a company that is capable of fulfilling themanagement company, as well as allow us to expand in size.

On the other hand, there were also some negative influences

automotive industry, the EU's Directive on end-of-life vehicles

functions and roles expected of us as a key player in developing

In addition, we will accelerate our expansion into overseas

affecting our business, and we were unable to fully absorb this

(ELV Directive) *1, which took effect in 2000, requires thatan efficient recycling society and carbon-neutral society.

markets, as well as in Japan. REVER currently operates a joint

impact during the previous fiscal year. One prominent example

automobiles use a certain percentage of recycled materials

Abe This is why co-creation with external partners is

venture in Thailand, and going forward we intend to expand

is the sharp rise in electricity and fuel costs, factors which wereas raw materials. To address such changes in the demand

becoming increasingly important. Our group management

the business model we have established throughout the

not initially anticipated. In addition, a drop in the number of newenvironment, we are becoming increasingly involved in thepolicy for fiscal 2023 is “the challenge of co-creation as one

world, with a focus on the ASEAN region.

vehicles supplied due to the worldwide semiconductor

automotive manufacturing value chain, playing a key role inshortage caused by the COVID-19 pandemic resulted in a

supplying recycled materials. These efforts have produced

decline in the number of vehicles scrapped, which negatively

tangible results, including the announcement in April 2023 of

impacted the performance of both the Waste Treatment &a business partnership with Sumitomo Chemical Co., Ltd. to

Recycling Business and the Resource Recycling Business.

establish a system for recycling plastic resources from

Matsuoka mentioned, waste management companies need to

Steadily advancing the four key strategies set
out in the medium-term business plan while
maintaining a keen focus on changes in theoperating environment.

be of a certain scale in order to be recognized as viable—Please share an overview of the Group’s performance

we have made a downward revision to the targets for the

Abe To further expand opportunities for this type of inter-business partners by companies in other industries. Although

in the fiscal year ended March 31, 2023, the second term of

plan's third and final year, in light of the impact on eachindustry collaboration, we plan to expand our functions andthe business integration has earned us greater societal

the medium-term business plan, including your evaluation

business. Having said that, we anticipate a slight recovery infacility capabilities to include those not currently possessed

credibility, resulting in more inquiries from companies suchand analysis.

the number of end-of-life vehicles generated, and we willby TRE, with the objective of making a broad contribution toteam,” and to this end we are actively exploring partnerships
with other companies and research institutions. Among these
efforts, we are placing particular focus on collaboration withpartners outside the waste management industry. As Mr.

as automakers and chemical manufacturers, we will not be

Status of medium-term business plan: p. 27)

As these adverse factors will take some time to abate,

Over the past two years, we have already madeend-of-life vehicles.

work to recover both our sales and profits by strengthening

the creation of an efficient recycling society.

satisfied with the status quo and will work to achieve our net

Matsuoka In the first year of the plan, both our core Waste

sorting and classification at our recycling plants andMatsuoka Glass is a typical example of a field in which thesales target of 100 billion yen for the fiscal year ending

Treatment & Recycling Business and Resource Recycling

continuing initiatives to add value to products shipped out. In

Group has lacked expertise thus far. Demand for glass

addition, a managed landfill facility operated by Monzen Clean

recycling is expected to increase dramatically in the future,

Park Co., Ltd. in Wajima City, Ishikawa, is scheduled toparticularly for the glass contained in solar panels andcommence operations in November 2023, which we anticipate

automobile windshields. There are actually many products

will contribute to our business performance in the future.

which TRE accepts for disposal that contain glass, including

Although we revised our forecasts downward, we still projectautomobiles, home appliances, and construction materials.

a 4.9% increase in net sales and a 10.5% increase in operating

However, until recently, now the Group has not possessed the

profit compared to the fiscal year ended March 31, 2023.

capability to treat and recycle glass waste. Accordingly, in

Co-creation with a range ofstakeholders is essential —both
within the waste management
industry and with other industries

April 2022 we conducted an M&A transaction to make JW

Key Strategy 1: Pursuing Growth for Recycling Business

GLASS RECYCLE Co., Ltd., a glass recycling business, awholly-owned subsidiary of TAKEEI. This has given us—Next, I’d like you to update us on the progress and any

additional expertise in treating and recycling the glass wasteachievements for each of the four key strategies youthat the Group accepts, and we can now put this technology tooutlined in your medium-term business plan, as well asuse for a wider range of wastes. In March 2023, JW GLASS

your future goals. Let’s start with “pursuing growth for

RECYCLE Co., Ltd. will become a subsidiary of TRE HOLDINGS

recycling businesses.”and change its name to TRE GLASS CORPORATION in order tofurther strengthen the business with the aim of pursuing

Abe In order to create an efficient recycling society, we aim

09

TRE HOLDINGS CORPORATION Integrated report 2023

growth for TRE's recycling business.

to increase the overall scale of our recycling business by

Abe Other areas in which TRE lacked expertise were

integrating TAKEEI's Waste Treatment & Recycling Businessincineration and biodegradation of waste. To improve Japan's

TRE HOLDINGS CORPORATION Integrated report 2023

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Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Top Message

energy self-sufficiency through non-fossil fuels and to extend

Matsuoka These initiatives link not only to the forestry

the life of final disposal facilities, in some cases it is moreindustry, but also to challenges facing agriculture, such as theappropriate to incinerate waste properly using thermal

abandonment of farmland and food self-sufficiency.

recovery technology. We therefore believe that possessing

Therefore, we are currently working to sow a variety ofsuch technologies as options can contribute to waste"seeds" with these types of societal challenges in mind.

We are adding new functions andprocessing capabilities to the
TRE Group to realize an efficient
recycling society

treatment and the commercialization of power generation. In
addition to possessing the ability to sort and recycle waste,

Key Strategy 3: Developing New Technologies

we will work to offer a variety of options for municipalities
according to their size and needs, such as decomposing food—Regarding “developing new technologies,” you havewaste from households into compost using the power ofannounced a policy of allocating 1% of sales to investment inmicroorganisms, and incinerating the remaining waste in an

R&D and related pursuits. In terms of where theseappropriate manner.

investments will be directed, which specific areas are you*1 E
 U Directive on ELVs: A directive on End-of-Life Vehicles (ELVs) enacted by
the European Union (EU) in October 2000. This regulation aims to reduce
the environmental impact of automotive-related industries by reducing
waste from automobiles.

focusing on?
Abe Our fundamental policy is to create technologies thatare required to realize our group's vision, strategy, and goals,

Key Strategy 2: Promoting Eco-friendly Energy Businesses

11

Key Strategy 4: Sustainability Management

This is closely linked to factors such as employee
engagement and motivation. Listening to the feedback frombut which we currently lack. One such example istechnologies that improve recycling efficiency. Currently, the—Your final key strategy, “sustainability management”

our employees, it is very encouraging to hear that they have a—Regarding “promoting eco-friendly energy businesses,”recycling efficiency across the Group as a whole has risen to

can be considered an imperative for all companies today.

high level of environmental awareness, particularly among

you are aiming to create a carbon-neutral society by

92.5%, and while we have set a KPI (target) to increase this to

What progress have you made in this area?

the younger generation, and that working for the TRE group,

promoting biomass power generation and thermal recovery

93% or higher by 2030, increasing the rate by another percent

from waste materials. What progress have you made so far?

from the current level will be no easy feat. In addition, as it

Matsuoka On the structural side, one major move we madebig source of motivation for them. I hope to build an

would be meaningless to increase our CO2 emissions in order

was the establishment of the CSR and Sustainability

organization where young employees are eager to step up

Abe We currently have six woody biomass power

to increase our recycling efficiency, we are studying

Committee in June 2022. When we endorsed the TCFD (Taskand play an active role when we embark on new initiatives

generation plants in the Tokyo metropolitan area and thetechnologies that will help us achieve our goals while taking

Force on Climate-related Financial Disclosure)

toward carbon neutrality. We have already introduced an

Tohoku region. Although net sales from this business areinto account the total impact on the environment.

recommendations and joined the TCFD consortium, weinternal recruitment system at some Group companies toapproximately 13–14 billion yen, operating profit is only 5–6%,

Matsuoka One key to achieving this will be technologies

established a new organization to promote specific initiatives

solicit members for new business projects.

and improving the profit margin is a key task. We willthat improve collection and classification capabilities. For

to address management tasks related to climate change, andtherefore work to acquire forests as well as utilize Group-

example, in the area of automobile recycling, initiatives are

I feel that led by this committee our sustainability initiatives

owned forests effectively in order to enhance the stability ofunderway to separate valuable materials from waste thatthroughout the Group have been revitalized.

operations at our six power plants. We will also strive to

was previously disposed of as dust and recycle them as

Abe One of the committee's key responsibilities is to identify

expand sales of renewable energy with non-fossil fuelresources. However, this requires new capital expenditure

the Group's material issues. We have already established and—The fiscal year ending March 31, 2024 will be the final

certificates through our power retailing business. In addition,and technological investment. Enhancing these classification

published non-financial KPIs linked to the material issues weyear of your medium-term business plan. Could you tell us

we will pursue synergies with the recycling business bytechnologies will increase recycling efficiency.

have identified (about your growth strategy beyond this point and yourutilizing waste materials that can be used as fuel for power

Abe For automobiles, our aim is to recycle not only metals,

which the Group is currently lacking is diversity. In particular,

generation, such as interior wallpaper collected from building

which we have conventionally recycled, but the entire

we recognize that the promoting women's career

demolition sites. For example, we are proposing a

automobile, including the aforementioned plastics,

development is a key task.

Matsuoka We plan to begin studying our next medium-term“sustainable resource recycling” scheme in which we use

windshields, and even batteries. If we can deliver on these

Matsuoka In recent years, the criteria by which corporate

business plan from this summer. As I mentioned earlier, ourcustomer waste to generate electricity, which is then returned

goals, automakers will feel that they can trust TRE to recycle

value is measured has shifted from the traditional financial

current medium-term business plan is the first such plan thatto the customer in the form of renewable energy.

all their materials, making TRE an essential partner for the

metrics to also encompass non-financial aspects. Companies

the Group has created, and while it outlines the purpose,

Matsuoka In order to advance our power generation

continuity of their business.

that fail to properly address these issues may suffer

objectives, and key strategies for the business integration, ourbusiness, another important issue is how to secure the fuelMatsuoka In particular, automakers are urgently studying

significant damage to their reputation among their businessnext plan will be even more specific. Currently scheduled torequired for power generation.

ways to recycle batteries—even more so than those of us inpartners, investors, and other stakeholders in society. Our

span a five year period, our upcoming plan will be slightly

which is committed to contributing to the environment, is aMaterial Issues: p. 23). However, one area in

The Vision for TRE Holdings' Next Medium-TermBusiness Planvision for the next medium-term business plan?

Abe At our woody biomass power generation plants, TAKEEI

the waste management industry—in anticipation of the

management team has a responsibility to maintain a keen

longer in duration. This is because we are currently working

Forestry Co., Ltd. currently owns and manages its own forests

societal shift to EVs. Therefore, I believe we must move swiftly

awareness of this perspective and tackle these challenges

on the TRE Integrated Environmental Business (provisionaland handles the thinned wood used as biomass fuel. We areto establish advanced technologies for disassembling andwith a sense of urgency.

name) a large-scale project in Ichihara City, Chiba (also considering the feasibility of using rice husks and a typeclassifying batteries removed from collected vehicles and

Abe In addition to external assessments, we must also pay

whose benefits will not be reflected in our businessof corn known as “dent corn” as other fuel sources.

recycling the rare metals such as lithium that they contain.

close attention to how our employees assess the company.

performance until around 2028. We will therefore develop

TRE HOLDINGS CORPORATION Integrated report 2023

p. 33)TRE HOLDINGS CORPORATION Integrated report 2023

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Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Top Message

The TRE Group’s New Medium-term Business Plan and Financial Management Policy

our medium-term business plan to reflect this. I believe that

achieve these goals. This is why we will first work to strengthen

our new medium-term business plan, which will be aligned

dialogue with our stakeholders, including publishing thiswith this project, will play a very important role in shaping

Integrated Report, which is now in its second year.

TRE’s future.

Abe In this regard, we recognize that the Group's IR and

Abe In addition to serving to reduce environmental impact

public relations efforts are still not sufficient. In addition tothrough proper waste disposal, the project in Ichihara City

our quarterly results reports and ongoing individual dialogues

also focuses on fulfilling a key infrastructure function in thewith institutional investors, and other stakeholders, we will

event of a disaster, including the treatment of disaster waste.

utilize a wide range of media and opportunities toWith large-scale earthquakes expected to hit the Tokyo

communicate information and promote strategic initiatives tometropolitan area and the Nankai Trough in the future, theenhance the TRE brand image by increasing understanding

Japanese government has stated its commitment to building

and support for the Group's initiatives.

a disaster-resilient society (capable of rapid recovery)

Matsuoka In doing so, we hope to make a conscious effort

through disaster prevention and mitigation. However, atto engage the younger generation in particular. Speaking withpresent this goal is far from being realized. I see the role ofour younger employees, it is evident that they are much more

the TRE Group to function as infrastructure for an efficientenvironmentally conscious in general than our generation. I

recycling society during normal times, and as infrastructure

believe that conducting active dialogue—not only within theto support a resilient society in the event of a disaster.

company, but also with the younger generation who represent

In addition to the project in Ichihara City, we are also
pursuing new initiatives including a solar panel recycling

the future of society—will lead to new opportunities forco-creation.

business at TAKEEI’s Soma Plant located in Soma City,

Abe With the expansion of the limit for tax-free NISA

Fukushima. We also have a vision to tackle next-generation

investment accounts in Japan, I hope that the younger

energies such as hydrogen and ammonia, which will

generation will take an active interest in our initiatives andcontribute to the realization of a carbon-neutral society.

invest even small amounts in TRE's shares, becoming long-

Matsuoka Our principles of “conservation of a global

term shareholders who will continue holding our shares asenvironment” and our vision of being a “comprehensive

assets. I believe that our management team's most importantenvironmental management company” are clearly articulated

responsibility is to achieve this type of sustainable corporate

in our current plan, and the future direction of the Group is

management, which will support the growth of the Group andbecoming increasingly well understood by our employees.

provide a stable source of funds for our shareholders to

Backcasting from this vision, we will aim to create further

support their lifestyles following retirement.

synergies across a wider range of areas by outlining specificscenarios detailing what needs to be done right now in our
new plan, and communicating this both within the company
and externally.

Increasing our operating cash flow to invest in growth, while
taking into account capital efficiency and investment efficiency
Studying our medium-term business plan for
the fiscal year ending March 31, 2025 and beyond
With regard to construction work, which affects the TRE Group’sbusiness, construction orders which were postponed due to the
COVID-19 pandemic are gradually beginning to recover as theeffect of the pandemic subsides. We are also accelerating ourefforts to build a solid profit base through initiatives to accomplish
large-scale projects and a variety of activities aimed at realizing acircular economy together with other industries ( p. 29).
The TRE Integrated Environmental Business (provisionalname) concept in Ichihara City, Chiba, which involves a total
investment of approximately 30 billion yen ( p. 33), and theShredder Dust Processing and Classifying Project announced
in June 2023, in which REVER CORPORATION will open its
Mibu Plant (provisional name) ( p. 36), will begin operations
in phases from 2025 to 2027. By steadily implementing theseprojects, we will work to promote profit growth and cost
reductions. In addition, business partnerships with otherindustries are projected to grow into larger inter-industry
collaborative efforts to achieve carbon neutrality across the
supply chain. We anticipate that M&A opportunities and joint
ventures using the TRE Group’s resources as a platform, as
well as joint research and development of new technologies
through partnerships between industry, academia, andgovernment, will serve as a major growth driver for theGroup, and will proactively explore such opportunities.
From fall 2023, the TRE Group will begin studying a new
medium-term business plan (new MTP), which will start fromthe fiscal year ending March 31, 2025. In this new MTP, we intend
to present a solid growth story and profit plan for the five-year
period through to the fiscal year ending March 31, 2029.

Securing funds for investment in growth, andmaintaining sound financial discipline
Regarding the funding and fund planning for our investments

in growth, we aim to firstly improve our profitability in order toincrease our operating cash flow. It is imperative that we
maintain a sound financial profile that will enable us torespond to future investment and M&A opportunities. The TREGroup’s planning and finance divisions work together to study
a variety of financing options and their timing based oninvestment plans, while maintaining an awareness of WACC,
ROE, and shareholder return policies. As a contingency
against the risk of rising interest rates, we are also extending
the maturity period of our financing and diversifying ourfunding sources, while in fiscal 2023 we plan to issue ESG
bonds (sustainability-linked bonds)—a first for the Group—toraise funds in the capital markets.

Capital efficiency and investment efficiency policy
The TRE Group aims to maintain a strong focus on PBR—a
key stock price metric—aiming to achieve a ratio of 1x or
higher, and plans to raise its ROE target from 8% or higher inthe current MTP to 10% or higher. In addition, the Groupplans to increase the total return ratio from the current
dividend payout ratio of 30% or more to 35–40%, including
share buybacks.
For new investments and monitoring of existing
investments, the Investment and Finance Committee
discusses investment benefits, risks, and returns in order tomake investment decisions with a firm awareness on cost ofcapital, and the results of deliberations on projects of acertain scale are reported at the Group Executive Committee
and the Board of Directors. This committee is composed of
officers and employees with extensive know-how as well as
experience and skills in the areas required to assess the
specific project under discussion, including fields such as
business planning, finance, legal affairs, and technology
development. The committee also facilitates the sharing of
projects within the TRE Group.

Enhancing dialogue with stakeholders to build
stronger relationships

Revising our ROE (return on equity) target

Shareholder returns—Finally, do you have a message for the TRE Group’s

We are raising our current ROE target of 8% or higher set in our current MTP
to 10% or higher in the future by enhancing profitability through appropriate
business portfolio management.

In the future we aim to achieve a total return ratio of 35% to 40%, which
represents a further increase from the current MTP target of a dividend payout
ratio of 30% or more (although returns will be provided in the form of dividends
in principle, depending on stock prices we may also consider share buybacks).

(%)
12.0

(%)
50.0

shareholders, investors, and other stakeholders?

11.6

Raising to
10% or higher

Matsuoka The vision that we, as members of the current
society, have of an efficient recycling society and a carbonneutral society cannot be achieved by the TRE Group alone. In
addition to stronger collaboration within the waste

30.0
6.0

municipalities, research institutions, local communities, as

0

22.6

20.0

management industry, partnerships with other industries,
co-creation with all stakeholders—including governments,

Aiming for
35 to 40%

40.0

8.1

9.0

39.5

FY2021

FY2022Future0

FY2021

FY2022Futurewell as shareholders and investors—will be essential to13

TRE HOLDINGS CORPORATION Integrated report 2023

TRE HOLDINGS CORPORATION Integrated report 2023

14

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

The TRE Group Principles and Code of Conduct

1

Part

Corporate Profile

TRE HOLDINGS CORPORATION’s
value creation as a comprehensive
environmental management company
The TRE Group is developing businesses that contribute to the creation of an efficient recycling, carbon-neutral
society based on our principles, “We are committed to the conservation of the global environment”.
In this section, we introduce our purpose and the initiatives we are undertaking to achieve this, as well as the goals
we are aiming for. We also outline the mechanisms and processes by which we are creating corporate value and the
key challenges we must tackle in order to grow in the future.

Principles

We are committed to the conservation of the global environment.
With the serious impact of destruction of environments and climate change across the globe underway,
we strive to support the creation of an efficient recycling and carbon-neutral society.
As a comprehensive environmental management company that places value on harmony with nature and coexistence withthe 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.

The meaning behind our company name
Try

Trying andinnovating

We are committed to trying and innovating (Try)to develop new technologies (Technology),

Recycling
Pursuing growth forrecycling businesses

Technology Earth Ecology

expanding our recycling business (Recycling),
and furthering our renewable energy business (Renewable Energy)

Developing
new technologies

in order to conserve the global environment (Earth, Ecology).

Protecting the
global environment

Renewable
EnergyPromoting eco-friendly
energy businesses

INDEX
16 The TRE Group Principles and Code of Conduct
17 Value creation model
19 Business model
21 Overview of businesses by segment

The TRE Group Corporate Code of Conduct

23 Material issues

We are aware of our corporate social responsibility as a company involved in the environmental business. Accordingly, in
addition to faithfully complying with all laws and ordinances, we will act as follows with good common sense.

1. Act on a customer-first basis
We will act in a way that earns trust and satisfaction from our customers
while always thinking from their standpoint.
2. Consider balance with the environment
We will proactively work on saving energy and reducing CO2 emissions
based on our outstanding technological capabilities and abundant
experience with a strong awareness to build a carbon-neutral society
and to engage in recycling and use of resources in our businessactivities. In addition, we will fully consider the natural environment
around us and our living environment.
3. Provide corporate information suitably and appropriately
We will provide corporate information suitably and appropriately tocustomers, business partners, shareholders, investors, and otherstakeholders while aiming to communicate widely with society.
4. Respect human rights
We will respect the human rights of each person. We will not permit
discrimination or harassment, based on race, ethnicity, religion,
nationality, social status, gender, age, or disabilities. We will also notallow child labor or forced labor.

15

TRE HOLDINGS CORPORATION Integrated report 2023

5. Compete fairly
We will engage in business while respecting fair and transparent
competition. In addition, we will maintain sound and appropriate with
politicians, government officials, customers, their agents, and all otherthird parties while not engaging in any kind of extortion, bribery, or otherform of corruption for the purpose of acquiring unfair profits.
6. Strive to ensure safety at work sites
We will strive to ensure safety at work sites with the whole company
working together to achieve that. We will aim for zero work accidents
together with our business partners and associated companies.
7. Strive to form workplaces that make the most of individualities and abilities
We will aim to form workplaces in which each of our employees candemonstrate their individuality, motivation, and abilities to the maximum
possible extent. Moreover, we will ensure a pleasant working
environment and strive to achieve comfort and affluence.
8. Do not provide benefits to antisocial forces
We will not provide economic benefits to antisocial forces that threaten
the social order and the sound activities of companies.

TRE HOLDINGS CORPORATION Integrated report 2023

16

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Value creation model

Toward an efficient recycling society and a carbon-neutral society—how the TRE Group creates value as a comprehensive
environmental management company

Contributing to a sustainable global environment
An efficient recycling society

Reduce CO2 emissions

A carbon-neutral society

Prevent environmental pollution
Promote use of renewable energy

Reduce quantity of landfill waste
Reduce use ofnatural resources

Conserve forest resources

The TRE Group receives waste of products that were originally produced by other industries and used by consumer society, andrecycles almost all of these materials. Furthermore, we are expanding our renewable energy business in order to contribute to asustainable global environment by realizing an efficient recycling society and a carbon-neutral society.

Resources received

Resources recycled

1,386,000

1,265,000

Waste & Scrap

Recycled resources

Receive recycled resources andcreate materials and products

Build acircular economy

Use products with care foras long as possible,and dispose of them properly

by promoting cooperation between
waste management industry
and other industries

construction industry- Waste wood
- Waste plastic- Waste liquid•Waste glass(bottles/plate glass)•Ferrous andnon-ferrous scrap•End-of-life vehicles•Used home appliances- Televisions- Washing machines- Air conditioners- Refrigerators•Used small home
appliances/electronic devices•Solar panels
etc.

Fuel for power generation•Thinned wood
•Underused forest resources•Timber damaged by insects•Environmental Engineering
Business•Environmental Consulting
Business

Renewable Energy•Electricity from woody biomass
power generation•Electricity from solar
power generation

plastics densified fuel (RPF)
etc.

Intellectual capital

TRE HOLDINGS CORPORATION Integrated report 2023

Renewable Energy
Businessor disastercash flow• Stable transactions withfinancial institutions

17

Resource Recycling
Business•Refuse derived paper and• Healthy financial foundation• Ability to generate ample

Receive and recycle waste

Waste Treatment &Recycling Business[recycled crushed stone (RC-40,
sand products, etc.)]•Ferrous and non-ferrous
raw materials•Recycled plastic raw materials•Glass cullet•Raw materials for gypsum
board and cement-basedsolidification materials•Fuel for woody biomass
power generation•Raw materials for papermaking•Raw materials for compost•Raw materials/fuel for
cement production•Secondary material forsteelmaking processes(Eco-Foam™)•Fuel for waste material
power generation
etc.

Other

Financial capital

Waste management industry•Construction work materials•Waste from

Consumers

Other industries

tons/year

tons/year• Waste treatment technology• Recycling technology experience• Woody biomass power
generation technology• Environmental plant andproduct-related patents

Manufactured capital

Human capitaland recycling facilities• Woody biomass power
generation facilities• Employees that support• Industry-leading sorting

Social and relationship capital• Relationships of trust withauthorities and local governments• Partnerships with raw material
producers, manufacturers ofassembled products and others• Collaborations with universities
and research institutions• Managers with expertise inenvironmental businesses
operational excellence

Natural capital• Energy• Water• Sunlight• Forests

TRE HOLDINGS CORPORATION Integrated report 2023

18

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Business model

TRE HOLDINGS’ vision for a circular economy based on cross-industrial
collaboration between the waste management industry andother industries

The TRE Group is committed to creating environmental value, focusing on three main businesses: the Waste Treatment & Recycling
Business and the Resource Recycling Business, which are founded on its high-level sorting and classifying technologies, and theRenewable Energy Business, which centers on woody biomass power generation.

Final disposal amount

Waste Treatment &Recycling BusinessResource Recycling
Business

110,000
tons/year

TRE landfill(final disposal) sites(Other companies’ final landfill sites)

Absorption

Woodlandcultivation

Afforestation

Residue**Hard-to-recycle wastes(waste products thatare difficult torecycle)RPF

RPF raw materials

Forest thinning

Resources recycled

tons/year

Material
manufacturers

Collection and transportation

Offcuts from forest thinning,underused forest resources

1,265,000

Recycled resources

Recycling efficiency

92%

Wood chips input

670,000

Wood chips
manufacturing plants

tons/year

570 GWh/year

Material

construction waste, ferrous andnon-ferrous scrap, end-of-life
vehicles, used home appliances,small home appliances

Amount harvested

12 tons/year

Renewable
Energy Business

Wood chips

Power generated

Woody biomass power
generation plants
Residual heat

Power

Consumer goods manufacturers
Cultivation of agricultural produce

Power retailing companies

Sweet tomatoes/
wood ear mushrooms

Power

Consumers/consumer society

Product

Building

Domestic forest

Wood chips (construction waste)

tons/year

Received resources

400 ha

RPF production plants

Resources received

1,386,000

Forest property area

Group-owned
forests
Former landfills are used aspark golf courses and solar
power generation facilities

Intermediate
processing
facilities

O2

CO2

Construction sites

Local communities

Power

19

TRE HOLDINGS CORPORATION Integrated report 2023

TRE HOLDINGS CORPORATION Integrated report 2023

20

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Overview of businesses by segment

Striving to build a circular economy through ourdiverse businesses

Waste Treatment &Recycling BusinessResource Recycling
Business

25,662 million yen

Business segment

44,866 million yen

(28%)

(49%)

With the TRE Group’s three main businesses: the Waste Treatment & Recycling Business, Resource Recycling Business, andRenewable Energy Business, we are working to achieve our vision of a circular economy by developing an Environmental
Engineering Business and Environmental Consulting Business, as well as promoting cross-linked collaboration between the waste
management industry and other industries.

Business function• Collection andtransportation

Waste Treatment &Recycling Business
Consolidated net sales*1• Waste treatment(construction-related)• Recycling• Landfill (final disposal)

90,712Business overview*2

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 transportthem 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 of recyclable waste such as construction work materials,
gypsum board, wastepaper and plastics. In landfilling, we treat residue that is difficult to recycle atlandfills for final disposal.
Operating companies

TAKEEI CORPORATION and 14 other Group companies

million yen• Metal recycling

Other• Environmental Engineering
Business• Environmental Consulting
Business

Renewable Energy
Business

7,374 million yen

13,794 million yen(8%)

Resource Recycling
Business• Automobile recycling• Home appliance recycling• Waste treatment (metal)(15%)

We recycle a wide range of metal 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 andcrush and sort after disassembly.
In home appliance recycling, we receive the four home appliances collected under the Home
Appliance Recycling Law from recycling system management companies, and manage designatedtransaction points and recycling facilities depending on the region. Finally, in metal waste treatment,
we compress and crush metal waste.
Operating companies

Waste Treatment &Recycling BusinessResource Recycling
Business

4,210 million yen• Woody biomass power
generation

3,139 million yen

(50%)

(38%)

Renewable Energy
Business

Operating profit*1• Power retailing• Forest management• Use of residual heat(for agricultural andother purposes)

million yen• Design and constructionof environmental
devices and plants

Other
Other
• Environmental Engineering Business• Environmental Consulting Business

325 million yen(4%)

Renewable Energy
Business

688 million yen(8%)*1 Net sales and operating profits in each business represent figures before
consolidated adjustment.

21

TRE HOLDINGS CORPORATION Integrated report 2023

We produce green power through woody biomass power generation and supply it to local elementaryand middle schools and public facilities, ensuring the local production and consumption 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 andforestry workers. We also use the residual heat that results from power generation in the cultivation ofsweet tomatoes 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.
Operating companies

7,509

Environmental Engineering
Business
Environmental Consulting
Business• Development,
manufacture, and saleof special vehicles• Environmental
measurement, surveys,
and analysis• Real estate appraisal
and valuation

REVER CORPORATION and 3 other Group companies

Tsugaru Biomass Power Generation Co., Ltd. and 11 other Group companies

The Environmental Engineering Business designs and constructs environmental equipment and plants
and develops, manufactures and sells special vehicles with a focus on environmental device andplant-related businesses, LPG bulk lorries, and garbage collection trucks. It also offers a maintenanceservice 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.
Operating companies

Environmental engineering: Fuji Car Manufacturing Co., Ltd.
Environmental consulting: Environmental Conservation Co., Ltd.,
Earth-Appraisal Co., Ltd.
*2 The number of operating companies is current as of April 1, 2023.

TRE HOLDINGS CORPORATION Integrated report 2023

22

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Material issues

Establishing key performance indicators (KPIs) for each of our
five material issues
Basic approach
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 which social issues we could
help resolve through our strengths and expertise as acomprehensive environmental management company, whichmatters we should use as a foundation for the continued
business of TRE HOLDINGS, and which matters would benecessary for sustained growth in corporate value. At the endof this repeated processes, we identified five material issues.

Material issue/vision

KPI

Create an efficient
recycling society

Achieve a recycling efficiency of
93% or higher by 2030.

We will respond appropriately andaccurately to the increasingly
sophisticated recycling needs of waste
generators using the strengths andexpertise of the Waste Treatment &Recycling Business.

Solvingsocial issues
through ourbusinesses

Create a carbon-neutral society
We will generate renewable energy,
reduce the greenhouse gases (CO2)emitted from our businesses, andcontribute to carbon neutrality
throughout society by providing
environmental devices and technologies.

The process of identifying material issues
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.
Based on this, in 2023 we established concrete goals,
including action plans and KPIs. Going forward, we willcontinue to steadily promote these initiatives byimplementing the PDCA cycle.
STEP 1

Considering candidates for material issues

Provide pleasant and fulfilling
working environmentsThefoundationof business
continuity

We will provide working environments
where diverse talents can work actively
with peace of mind and where allindividuals can display their potential to
the fullest.

Strengthen thecorporate governance structure

STEP 2

Scoring material issue candidates

We will ensure that we have a sound andhighly-transparent governance structure,including compliance, in order to promotesustainability management.

We performed a four-stage evaluation (scoring) of material issue candidates
from two viewpoints: their importance to TRE HOLDINGS and their importanceto stakeholders.
STEP 3

Narrowing down candidates for material issues
We gathered employees from a range of departments to debate theappropriateness of our rankings. Finally, we narrowed the material issues
down to five based on our future vision.
STEP 4

Approval from management

STEP 5

Setting KPIs
We then established quantitative key performance indicators (KPIs) for each of
our five material issues. Implementing initiatives to solve issues.

23

TRE HOLDINGS CORPORATION Integrated report 2023

Achieve net zero CO2 emissions
from purchased electricity(Scope 2) by 2026.
Reduce CO2 emissions (Scope 1+2)
by 46% or more in real terms by
2030 compared to 2013（FY ended
Mar. 2014）.
Achieve net zero CO2 emissions(Scope 1+2+3) by 2050.

We began by compiling an extensive list of issues taking into account recent
societal demands and trends, and ultimately identified 53 items as candidates
for material issues.

The CSR and Sustainability Promotion Committee exchanged opinions on theorganized material issues and judged them to be appropriate, and they weresettled upon after the approval of the Board of Directors.

Achieve a recycling efficiency of
94% or higher by 2040.

Sustainablegrowth incorporate value

Enhance our brand value andincrease our recognition as acomprehensive environmental
management company
We will undertake initiatives and share
information that earns us the trust andbusiness of customers, business
partners, shareholders and investors.

Increase the rate of male
employees taking leave forchildcare purposes*1 to 100%by 2030.
*1 Childcare leave or paid leave

Double*2 the number of womenin managerial positions by 2035.
*2 From 16 in FY ended Mar. 2023 to 32

Reduce the frequency rate ofworkplace accidents to theaverage across all industries(average across all industries
surveyed) by 2030.
Conduct an annual assessmentof the effectiveness of theBoard of Directors.

100% participation rate in internal
governance-related training.

Improve evaluation by externalrating agencies (ESG rating
agencies, etc.).

Action plan

• 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.
• Establish/operate sustainable woody
biomass power generation plants
integrated with forest management.
• Introduce a CO2 calculation system tomonitor greenhouse gas (CO2)emissions from business activities ina timely manner and visualize theeffect of measures implemented toreduce emissions.
• Provide environmental equipment,
technology and services that help
stakeholders reduce greenhousegases (CO2).

SDGs we can contribute to

Related pages

pp. 29-32

pp. 39–42

pp. 43–44

pp. 55–56• Create workplaces where anyone
can work in health and safety andwith peace of mind.
• Promote work-life balance.
• Develop the human resources thatwill support the company’ssustained growth by carrying out allkinds of training and providing asystem to support obtaining
qualifications.
• Ensure thorough awareness ofsafety management and promote
accident prevention initiatives atplants and in vehicles.

pp. 59–61• Maintain the transparency of management
by establishing various committees.
• Conduct training to ensure thoroughcompliance and check the state of observance.
• Practice appropriate information
management and risk management.
• Conduct assessment of the effectiveness of
the Board of Directors.

pp.50–54• Disclose information in a timely andsuitable fashion.
• Practice fair and equitable IR activities.
• Engage stakeholders.

p. 13
p. 52
pp. 57–58

TRE HOLDINGS CORPORATION Integrated report 2023

24

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

The Group’s long-term vision

Part

2

Vision and Strategy

Helping create an efficient recycling,carbon-neutral society
The TRE Group has set a long-term vision for the year 2050 of acquiring enough technological capability, scale, andsocial credibility to play a leading role in a circular economy.
In addition to reporting on the progress of the medium-term business plan that we have set to achieve these goals,
this report also includes information on key initiatives that are currently underway, including “Collaboration with
Other Industries,” “TRE Integrated Environmental Business (provisional name),” and “Glass Recycling,” as well as
insights into the features of each of our business segments.

INDEX
26 The Group’s long-term vision
27 Status of medium-term business plan
29 Feature 1: Strengthening collaboration with other industries

A growth strategy that will enhance existing businesses whileconsidering M&A, alliances and expansion overseas
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 aneffective connection between industries that handle
manufacturing and the waste management companies thatrecycle or dispose of waste. The issue in Japan, however, isthat waste management companies’ scale of business as
those responsible for the circular economy is extremely small
compared to other industries.
TRE HOLDINGS has set a long-term vision for the year
2050 of acquiring enough technological capability, scale, andsocial credibility to play a leading role in the circular economy
as a comprehensive environmental management company.
To make that vision a reality, we will pursue a growth strategy
of enhancing existing businesses while considering various
options such as M&A, alliances and expansion overseas. At
the same time, as a company that seeks to help achieve acarbon-neutral society, we intend to make all the energy usedby our Group carbon-neutral in the five years of theintegration of the company, and to make the greenhouse gas
emissions from all of our business activities net zero by 2050.
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 FY ending Mar. 2026.

Conserving thenatural environment
Approx. trillion yen

9Preventing
environmental pollution
Approx.
trillion yen• Forest management• Environmental consulting

11

The market sizeof the environmental
industry in Japan

Approx.
trillion yen

109
Treating waste and using
resources effectively
Approx.
trillion yen

Global WarmingCountermeasures
Approx.
trillion yen• Waste treatment• Metal recycling• Home appliancerecycling• Woody biomass
power generation

54

35• Landfill• Automobile recycling• Environmental
engineering

Source: “Report on the Market Size and Employment of the Environmental Industry” releasedin June 2023 (2021 edition) by the Environmental Industry Market Size Study Group.

33 Feature 2: Exploring new potential—TRE Integrated Environmental Business
37 Feature 3: Further enhancing recycling business—strengthening glass recycling capabilities
39 Overview of businesses by segment
48 Toward an evolution in our business functions

ProfitDeploy a Japanese waste treatment andresource recycling scheme overseas
Pursue M&A and alliances that will form thecore of a reorganized industry
Pursue growth for recycling businesses,
promote eco-friendly energy businesses
and develop new technologies

Leads the environmental industry
as a comprehensive environmental
management company
Expansion overseas
M&A and alliances

Integration

Next 5-year
medium-term plan

Enhance existing
businesses

2020 2021 2023.3 2024.3 2026.3 2029.3
Results in Year Ended March 31, 2023
Net sales: 90.7 billion yen
Operating profit: 7.5 billion yen

25

TRE HOLDINGS CORPORATION Integrated report 2023

Targets
Net sales:
95.2 billion yen
Operating profit:
8.3 billion yen

Targets
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 2023

26

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Status of medium-term business plan

Steadily implementing our medium-term business plan based onfour key strategies
market price for ferrous scrap reached 53,000 yen per ton(price of special grade at the Utsunomiya Plant released by
Tokyo Steel Co., Ltd.) at the end of March.
The Group’s consolidated results for the fiscal year
ended March 31, 2023 were net sales of 90,712 million yen,operating profit of 7,509 million yen, ordinary profit of 7,600
million yen, and profit attributable to owners of parent of
5,197 million yen.
In the fiscal year ending March 31, 2024, the final yearof our medium-term business plan, we will further
strengthen our four key strategies ( p. 28). We have also
begun studying our next medium-term business plan,
including the “TRE Integrated Environmental Business(provisional name)” concept, in order to further propel ourbusiness growth.

Looking at the Group’s business environment, in the fiscal
year ended March 31, 2023, the second year of our mediumterm business plan, the effect of COVID-19 pandemic
subsided, and economic activity, which had been stagnant,began to show signs of a gradual recovery. Althougheconomic conditions are expected to continue to improve,
geopolitical risks, such as the protracted conflict between
Russia and Ukraine, remain high, and concerns remain overJapan’s energy supply and demand balance, as well as its
economic security.
Amidst this backdrop, new housing starts andconstruction orders are showing a general recovery trend,
supported by housing and construction demand that had
been postponed due to the COVID-19 pandemic.
In addition, after a temporary period of fluctuation, theKey Strategy

Key Strategy

Pursuing growth for recycling
businesses

Promoting eco-friendly energy
businesses• Launched TRE Integrated Environmental Business(provisional name) in Ichihara City, Chiba( p. 33)• Business partnerships and collaborations with otherindustries( p. 29)• Made JW GLASS RECYCLING CO., LTD. a 100%
subsidiary and changed name to TRE GLASSCORPORATION( p. 37)• Established a new resin separation & sorting line
(REVER CORPORATION’s Nasu Plant)• Installed a sorting and crushing line for combustible
materials, including optical sorters(TAKEEI CORPORATION’s Kawasaki Recycling Center)• Completed a waste wood crushing plant(Shinshu Takeei Co., Ltd.)• Commenced forest thinning based on Forest
Management Plan approved by Hanamaki City
(TAKEEI Forestry Co., Ltd.)( p. 44)• Acquired approximately 40 ha of protection forest(TAKEEI Forestry Co., Ltd.)( p. 44)• Integrated five power retailing companies to reduce
costs through centralized management andutilization of non-FIT fuels (solid fuel RPF, etc.)(Takeei Denki Co., Ltd.)( p. 45)• Acquired a waste disposal business license(Hanamaki Biomass Chip Co., Ltd.)• Increased generated power output (Tsugaru Biomass
Power Generation Co., Ltd., Hanamaki Biomass
Power Generation Co., Ltd.)• Joined the Keikyu Group’s Miura no Mori Forest Project(Takeei Green Recycling Co., Ltd.)( p. 46)

Progress of medium-term business plan (3rd year targets revised)(Millions of yen)

Results

Plan

FY 03/2021
Full-year
results*1

2nd year of medium-term business plan
(FY03/2023)

3rd year of medium-term business plan
(FY03/2024)

1st year of
medium-termbusiness plan
Progress

Full
year
results*2

Original plan After
After
for 3rd year revision second(disclosed (disclosed revision*2
in Oct. 2021) in May
2022)

1st year of medium-term business plan
(FY03/2022)
YoY

Fullyearresults*1, *2YoY

2nd year of
medium-termbusiness plan
Progress

YoY
Change(Compared
to actual
results)

Net sales

73,47090,584 +23.3%

84,000107.8%

90,712+0.1%

94,20096.3%

92,00098,00095,200

+4.9%

-2.9%

Operating profit

6,727

10,326 +53.5%

7,700

134.1%

7,509-27.3%

9,300

80.7%

9,000

10,1508,300+10.5%-18.2%

Operating profit
margin9.2%

11.4% +24.5%

9.2%

124.4%

8.3%-27.4%

9.9%

83.8%

9.8%

10.4%

8.7%

+5.3%

-15.8%

Profitattributable toowners of parent

4,084

7,248 +77.5%

5,050

143.5%

5,197-28.3%

5,900

88.1%

5,890

6,440

5,400

+3.9%

-16.1%

141.1

98.3

143.5%

101.2

-

114.8

88.2%

114.6

125.3

105.1

-

-16.1%

Earnings per
share (yen)

-

*3

-

*3

*1 R
 esults for TAKEEI CORPORATION and REVER CORPORATION (formerly REVER HOLDINGS CORPORATION), for the period from April to March of the following year,
have been combined to make YoY comparisons.
*2 O perating profit includes impact from goodwill amortization related to the business integration (JPY90 million for FY ended Mar. 2022, and JPY178 million for FY
ended Mar. 2023 onward).
*3 I n the 1st year of the medium-term business plan, the number of shares is calculated based on the number of outstanding shares as of March 31, 2022 minus thenumber of treasury shares at the end of the same period, which is 51,362,030 shares.

Progress of financial targets

Sorting and crushing line for combustible
materials, which includes optical sorters at
the Kawasaki Recycling Center.

Key Strategy

Key Strategy

Continually striving to develop
new technologies ( p. 48)

Sustainability management• Utilizing rice husks for woody biomass power generation(Tsugaru Biomass Power Generation Co., Ltd.)• Improved quality of waste tile carpet recycling (patented)(Tokyo Recycling Center of TAKEEI CORPORATION)• Entered into a joint research agreement for thedevelopment of CCUS technology(TRE HOLDINGS CORPORATION)• Established non-financial KPIs (TRE HOLDINGSCORPORATION)( p. 24)• Entered into an agreement with Yotsukaido City tocooperate in emergency measures in the event of
a disaster (TAKEEI CORPORATION)( p. 64)• Certified as an “Ichihara City SDGs Declaration
Company” (Green Power Ichihara Co., Ltd.,
REVER CORPORATION Ichihara Plant)( p. 63)

Financial targets
ROE

Equity ratio

Credit rating

Operating profit margin

8% or higher

40% or higher

BBBor higher

10% or higher(by the year ending March 31, 2026)

FY ended Mar. 2023 (Actual)Mar. 31, 2023

FY ended Mar. 2023 (Actual)

8.1%

49.5%

December 16, 2022
Rating and Investment
Information, Inc.

Obtained BBB rating

8.3%** Calculated for the 2nd year of the Medium-term business plan (April 1, 2022 to March 31, 2023 for both TAKEEI CORPORATION and REVER HOLDINGS CORPORATION).

27

TRE HOLDINGS CORPORATION Integrated report 2023

Forest in Hanamaki City acquired by TAKEEIForestry Co., Ltd.

Recycled polyvinyl chloride (Eco-Flake)
manufactured from waste tile carpet

Creating pleasant and fulfilling working
environments

TRE HOLDINGS CORPORATION Integrated report 2023

28

1Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

FeatureStrengthening collaboration with other industries
Approximately two years after our business integration, the TRE Group has begun developing a resource
recycling model.
This model connects our waste management industry and other industries which manufacture raw materials
and products with the TRE Group playing a central role.

by major global manufacturers and other large-scaleindustries, the waste management industry, which serves asa partner, requires an equivalent scale of operations. Withlarge-scale waste management companies already emerging
in other countries, there has long been anticipation for theestablishment of Japan-based waste managementcompanies of a similar scale and reliability.
To meet these expectations of the industrial community,
TRE HOLDINGS CORPORATION was established in 2021 as apioneering presence in Japan’s waste management industry.
In the two years since establishment, we have received anincreasing number of inquiries from other industries, andseveral seeds have been sown toward the creation of a new
resource recycling model that is based on cooperation between
the waste management industry and other industries.

Amid a growing focus on a circular economy in order to create
an efficient recycling society, economic activity often can belikened to the circulation of blood in the human body. The
material and consumer goods manufacturers that use
natural resources to produce raw materials and products are
sometimes described as “arterial industries,” whilebusinesses that collect and process the waste generated
during production and following consumption for recycling
are referred to as “venous industries.”
Meanwhile, there is growing anticipation for theestablishment of systems to recycle resources via
collaboration between these “venous” and “arterial”
industries (we generally refer to these as “the waste
management industry” and “other industries”, respectively).
In order to recycle the vast amount of waste generated

New initiatives to cooperate with other industries
Raw materials

Power supply

Solve problems arising
Collaborate on
ensuring sustainability
in waste treatment
Handle disaster
waste disposal needs

Collaboration withlocal governments

Material manufacturers

Collaboration with
consumer goods
manufacturers

Collaboration withmaterial manufacturers

Design, propose, andoperate waste value chain

Establish environmental
impact assessment

Incorporate subscription andother business models

Stabilize supply andensure quality ofrecycled materials

Plastics pose one of the biggest challenges in materials
recycling. Although plastics are indispensable materials used fora wide variety of purposes, they are often discarded orincinerated due to the time and labor involved in sorting andcollecting them, making the establishment of an efficient
resource recycling system for plastics a key societal challenge.
In the automotive industry, one of Japan's key
industries, although progress has been made on recycling of
metal parts such as automobile bodies, the recycling ofplastic parts remains a challenge due to the high degree ofdifficulty involved. Amid the growing importance of resource
recycling in recent years, the momentum to recycle plastics
obtained from disassembled end-of-life vehicles has
increased. The Recycling Incentive Scheme being studied by
the Japanese government is also expected to further
accelerate this trend in the future.
In order to address these societal challenges andneeds, REVER CORPORATION, which has a wealth ofexperience in the collection and recycling of end-of-life
vehicles, has been studying establishing systems forDevelopment of advanced sorting
and recycling technology
Development of applications
for recycled productsCollection andtransportation•Optimization oflogistics systems

Intermediate
processing
Recycling•Automation ofsorting process•Robotization ofvarious processes

MetalsMaterial recycling

Waste plastics

Chemical recycling

Wood

Thermal recovery

Debris and others
Final disposal (landﬁll)

recycling plastic resources since June 2021 in collaboration
with the diversified chemical manufacturer Sumitomo
Chemical Co., Ltd.
Having established the foundation for development of amaterial recycling process through inter-industry
collaboration, with REVER CORPORATION utilizing its
advanced disassembly and sorting technologies to provide astable supply of high-quality waste plastic, and Sumitomo
Chemical Co., Ltd. producing high-quality recycled plastic tomeet the needs of automakers, the two companies enteredinto a business alliance agreement in April 2023 to further
strengthen this partnership.
Through this partnership, the two companies plan toconstruct a resource recycling model, encompassing
resource recovery, sorting, and recycling, and to begin
supplying products to automakers as early as fiscal 2025. In
the future, the two companies are also exploring thepossibility of establishing a joint venture in order to expand
the collection and recycling network and achieve rapid
commercialization of this venture.

Model for recycling plastics from end-of-life vehicles•Advanced use of information•Information visualization

General waste

Industrial waste

Consumer goods
manufacturers

Sales

Consumption

Plastic recycling partnership with Sumitomo Chemical Co., Ltd.

Automotive andautomotive parts
manufacturers

Molding andassembly

Collection,
disassembly,
crushing, andsorting

Disassembly andcrushing companies

Pelletizing andcompounding
Material
manufacturers

29

TRE HOLDINGS CORPORATION Integrated report 2023

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30

1FeatureIntroduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Strengthening collaboration with other industries

Establishing a one-stop waste treatment service encompassing collection and transportation
through to disposal in collaboration with Hitachi Zosen Corporation
In the TRE Integrated Environmental Business (provisional name)concept currently underway in Ichihara City, Chiba ( p. 33),
Hitachi Zosen Corporation, our partner in the waste incinerationand power generation business, who continues to transform
its operations to meet current societal needs, is currently
focused on pursuing environment-related business. In particular,
the company has a world-leading track record in designingand constructing facilities that generate electricity from waste.
The TRE Group, with its integrated industrial waste
treatment and resource recycling system, signed a business
partnership agreement with Hitachi Zosen Corporation in May
2023 with the aim of helping to create a circular economy by
optimizing the processing and recycling of both general andindustrial waste. This business partnership, which targets
municipalities, aims to promote public-private collaborationin the waste treatment and recycling field.
Many regions have already been required to review
their waste treatment systems, including upgrading(expanding/concentrating) their facilities. In addition, there isa pressing need to minimize emissions of plastic-containing
product waste, recycle such resources, and reduce CO2
emissions from their incineration. The two Group companies
will work together to promote public-private partnershipprojects and a shift to facilities generating power from waste
and recycling facilities, enabling general and industrial wastefrom municipalities that was previously collected andprocessed separately to be treated with high efficiency.
We aim to deploy these systems several areas in the
Kanto region and operate the business effectively. In the
future, we plan to expand this business to a broader area
beyond the Kanto region.

Message from project representative
Contributing to a recycling-oriented society
through collaborative projects with municipalities
Hitachi Zosen Corporation aims to be a solution partner that
contributes to the realization of a sustainable, safe, and securesociety, and operates its business with a focus on the fields of“decarbonization,” “resource circulation,” and “safe &prosperous community”. By partnering with TRE HOLDINGSCORPORATION, we aim to contribute to a recycling-oriented
society by optimizing the treatment and recycling of bothgeneral and industrial waste.
As the first step in establishing this business
partnership, we are steadily making preparations forparticipation in the TRE Integrated Environmental Business(provisional name) concept in Ichihara City, Chiba, including
establishing a joint venture company. This business
partnership will drive public-private partnership projects
targeting municipal demand, construction of recycling facilities
to comply with the recently enacted Act on Promotion of
Resource Circulation for Plastics, and recovery of valuable
resources from incinerator ash. Throughthese initiatives, we hope to contributeto the realization of a recyclingoriented society—a goal that bothcompanies share.

Takao Ito
General Manager,
Environmental Solution Sales
Department,
Environment Headquarters,
Hitachi Zosen Corporation

Details of business partnership
Hitachi Zosen’s participation in the TRE Integrated Environmental Business (provisional name) concept in Ichihara City, Chiba
Public-private collaborative projects- Mixed treatment of general and industrial waste at facilities generating power from waste and crushing and sorting facilities throughprivately owned and operated projects and Public Private Partnership projects.
- Supply of power generated by renewable energy such as thermal recovery power through new regional power companies- Treatment of disaster waste and support activities

Plastic sorting and recycling business- Construction and operation of privately owned and operated sorting centers- Material and chemical recycling of sorted plastics

Ash recycling business- Establishment and commercialization of technology to recover metal resources from incinerator ash- Recycling of incinerator ash after recovering metals- Landfill disposal of difficult-to-recycle materials

Circular Economy Plan in partnership with Mizuho Leasing Company, Limited
In order to address societal challenges through its business,in recent years Mizuho Leasing Company, Limited has set a
vision to “be a creator of a sustainable world,” and is pursuingsustainability initiatives that leverage the company's
extensive experience as a leasing company.
As these initiatives align with the direction of TRE
HOLDINGS CORPORATION, in 2022 we established a basic
agreement regarding the development of a business scheme
aimed at transitioning to a circular economy, while the TREGroup’s REVER CORPORATION also entered into acomprehensive agreement regarding the handling of used
items and equipment from properties owned by the Mizuho

Leasing Group.
Going forward, we will work to build a platform for acircular economy and visualize and reduce greenhouse gas(GHG) emissions by combining Mizuho Leasing Company's
customer base, data network, and solution delivery
capabilities with the TRE Group's expertise in waste disposal
and recycling. Through this partnership with Mizuho Leasing
Company, Limited we will also strive to establish resource
recycling systems across a wide range of fields throughcollaboration with companies from other industries, such as
materials and product manufacturers.

Recycling of vacuum insulated flasks in partnership with THERMOS K.K.
Stainless steel is a metal that possesses superior corrosion
resistance, durability, and heat resistance, and is utilized in awide range of applications including electrical products,
medical equipment, and construction materials in addition tohousehold goods such as vacuum insulated flasks. Stainlesssteel can be readily recycled with virtually no decline in grade
after use, and recycling stainless steel, which contains
valuable elements such as chromium and nickel, represents asignificant step toward preserving natural resources.
However, this recycling potential is not well known to
the general public, and many people have tended to dispose ofstainless steel as “non-burnable waste” after use. As ameasure to address this, THERMOS K.K., a pioneer in vacuum
insulated flasks, in partnership with REVER CORPORATION,
launched an initiative in April 2023 to collect used stainlesssteel flasks at three THERMOS-operated Thermos Stylingstores in the Kanto region. After collection, REVER
CORPORATION, which operates 18 sites primarily in the Kanto
region, receives the collected flasks and processes them into
recyclable resources via crushing, sorting, and otherprocessing methods.

Products eligible for collecting service (examples)

Stainless steel vacuum
insulated flasks

Stainless steel vacuum
insulated tumblers

Stainless steel vacuum
insulated soup jars

Recycling Pilot Project in partnership with Nitori Co., Ltd. and Sumitomo Osaka Cement Co., Ltd.
TAKEEI CORPORATION has partnered with Nitori Co., Ltd., amanufacturer, distributor, and online retailer of furniture andinterior goods, and Sumitomo Osaka Cement Co., Ltd., andundertaken an initiative to recycle carpets and futon mattresses.
Due to their properties, carpets and futons are difficult
products to sort and dispose of. To address this challenge, thethree companies trialed a recycling scheme in which carpetsand futons no longer needed by customers are collected by
Nitori, then TAKEEI, as the intermediate waste processor,
performs intermediate processing (shredding) of thecollected products at the Kawasaki Recycling Center, after

which Sumitomo Osaka Cement reuses them as raw
materials in cement and other products.
In addition to using the shredded carpet and futons togenerate heat energy for the calcination process during
cement production, the ashes and residues after calcination
are also reused as raw materials for cement, thustransforming the material into cement products. The trial
demonstrated the effectiveness of the scheme in extending
the life of final disposal sites by reducing the amount of ash
previously disposed of in landfills, without generating
secondary waste.

Collaboration on CO2 reduction, recovery, and utilization technologies, as well as plant labor-saving and digitalization

31

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32

Feature

2

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Exploring new potential—TRE Integrated
Environmental Business
The TRE Group is currently developing the TRE Integrated Environmental Business (provisional name) concept inIchihara City, Chiba.
In this feature, we share an overview of this large-scale project, including the value it will provide to society.

The TRE Integrated Environmental Business (provisional name) concept in Ichihara City, Chiba
Since the establishment of the TRE HOLDINGS CORPORATION
in October 2021, we have been studying the development of a
new business framework to drive resource recycling amid theglobal trend toward an efficient recycling, carbon-neutral society.
As the need for treatment and recycling of industrial
waste such as waste plastics grows, in addition to diversified
and more advanced collection and recycling technologies,
larger-scale treatment facilities are required in order to meetthe demands of local communities and various industries.
With this objective in mind, we focused our attention on
Ichihara City, Chiba, an area where the TRE Group already has
multiple sites and which is conveniently located in the Tokyo
metropolitan area.
In September 2022, the TRE Group, which had been
exploring the possibility of acquiring a business site in Chiba,reached an agreement with Mitsui E&S Holdings Co., Ltd.

(currently MITSUI E&S Co., Ltd.) to lease approximately
80,000 m2 of land, a portion of its Chiba site. We plan tomaximize our use of this extensive site, together with the
nearby 37,000 m2 in total of land of REVER CORPORATION's
Ichihara Plant and Green Power Ichihara Co., Ltd., to create acomprehensive waste treatment and recycling business,
which we have provisionally named the TRE Integrated
Environmental Business.
We project that the investment for this concept will
total 30 billion yen, and aim to begin operation of the facilities
and plants that will play a central role in the business inphases from 2025 to 2027. This large-scale project, whose
annual sales are expected to reach 12 billion yen and which
will create 150 new jobs once full-scale operations areunderway, is attracting significant attention from theindustrial community.

Image Photo

Connecting four new and existing businesses
As the name implies, the TRE Integrated Environmental
Business (provisional name) concept aims to achieve largescale, efficient resource recycling and utilization throughsynergies between several environmental businesses.
Specifically, the four new businesses to be launched at
the new site—(1) crushing and sorting, and recycling ofindustrial waste, (2) waste incineration and power generation,(3) advanced sorting of metal resources, and (4) advanced
sorting and recycling of waste plastics—will be interlinked
with the resource recycling business of REVER
CORPORATION's Ichihara Plant and the woody biomass power
generation business operated by Green Power Ichihara Co.,
Ltd., in an integrated business framework.
In the crushing and sorting, and recycling of industrial

waste business, we will combine the TRE Group’s
accumulated technologies and expertise in intermediate
waste processing and introduce new equipment that
surpasses existing intermediate processing facilities in bothscale and functionality. In addition to achieving proper waste
processing through crushing and advanced sorting, we will
recycle as much of this waste as possible and supply it toother sites in the vicinity.
The waste incineration and power generation business,
which represents the first initiative of its kind for the TREGroup, will be developed as a joint venture with Hitachi Zosen
Corporation. Business operation will be led by T&H Eco Mirai
Co., Ltd., which was established in 2022 as a joint venture
between the two companies. (Continued on next page )New initiatives to cooperate with other industries
Raw materials

CONCEPT

Power supply• By installing equipment that exceeds the scale and functionality of TRE Group's existing intermediate
processing and recycling facilities, we will achieve a higher quality of crushing and sorting, thereby
promoting proper treatment and recycling of waste.

Crushing and sorting,and recycling ofindustrial waste• T&H Eco Mirai Co., Ltd., a joint venture with Hitachi Zosen Corporation (investment ratio: TAKEEICORPORATION 51%, Hitachi Zosen Corporation 49%) will operate the Group's first waste incineration andpower generation business.
• Projected processing capacity of 330 tons per day.
• High-efficiency power generation using residual heat from incineration process (current projected output:
approximately 10 megawatts).

Advanced sorting of
metal resources• We will insource and enhance the collection of useful metal resources, which previously had to be soldexternally and outsourced for processing, further improving our recycling efficiency and contributing tohigher profitability.
• Stable operations will be achieved by securing recyclable waste materials for recycling throughcollaboration in the recycling process with REVER CORPORATION’s Ichihara Plant, located nearby.

Advanced sorting
and recycling ofwaste plastics

33

Solve problems arising
Collaborate on
ensuring sustainability
in waste treatment
Handle disaster
waste disposal needs

Collaboration withlocal governments

Material manufacturers

Collaboration with
consumer goods
manufacturers

Collaboration withmaterial manufacturers

Design, propose, andoperate waste value chain

Establish environmental
impact assessment

Incorporate subscription
and other business models

Stabilize supply andensure quality ofrecycled materials•Advanced use of information•Information visualization

Development of advanced sorting
and recycling technology
Development of applications forrecycled products

11

General waste
Collection andtransportation
Industrial waste

Consumer goods
manufacturers

Sales• Difficult-to-recycle materials will be converted to RPF (solid fuel) and supplied to the nearby Green PowerIchihara Co., Ltd.
• The business will also supply fuel sources for thermal recovery, serving as a pre-treatment function for
waste incineration facilities.

Waste incineration andpower generation

Consumption•Optimization oflogistics systems

Intermediate
processing
Recycling•Automation ofsorting process•Robotization ofvarious processes

3
MetalsMaterial recycling

Waste plastics

Chemical recycling

4
Wood

2

Thermal recovery

Debris and others
Final disposal (landﬁll)• We will construct and operate advanced sorting and recycling equipment capable of handling material,chemical, and thermal recovery of waste plastic in accordance with the enforcement of the Act on
Promotion of Resource Circulation for Plastics, with a view to future collaboration with municipalities.

TRE HOLDINGS CORPORATION Integrated report 2023

TRE HOLDINGS CORPORATION Integrated report 2023

34

Feature

2

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Exploring new potential—TRE Integrated Environmental BusinessOf the 330 tons per day processing capacity that the company
possesses, approximately 200 tons will be used to process
combustible materials such as construction waste, which the
TRE Group had previously outsourced for incineration, which
will also contribute to improved profitability for the Group as awhole. The remaining approximately 130 tons will also becollected, utilizing the site's favorable location in the Tokyo
metropolitan area, in order to achieve stable operations. In
addition, we will supply the region with a stable power source
through high-efficiency power generation using residual heatfrom the incineration process. We will also study the potential
utilization of Hitachi Zosen's CCU and CCUS* technologies,
taking into account the medium- to long-term trend toward
carbon neutrality.
In the advanced sorting of metal resources business,
we aim to improve recycling efficiency and profitability by
insourcing and enhancing our ability to recover useful metal
resources that are not fully collected by the Group's existing
recycling processes and are currently sold externally oroutsourced for processing. This will also help ensure stable
operations, as recyclable waste materials can be secured incollaboration with a nearby Group site, REVER
CORPORATION's Ichihara Plant.
The advanced sorting and recycling of waste plastics
business will operate advanced sorting and recycling
equipment capable of handling material recycling, chemical
recycling, and thermal recovery of waste plastics, with a view
toward collaboration with Ichihara City, the local municipality.
With the enforcement of the Act on Promotion of
Resource Circulation for Plastics in 2022 requiring
municipalities to sort, collect, and recycle plastic end-of-life
product waste, we anticipate steady demand for suchservices from municipalities in the future. In the medium- tolong-term, we will continue working to develop a businessframework for resource recycling and utilization by
expanding and strengthening collaboration with external
partners, including wide-area waste emitters as a collection
source and material manufacturers as users.

Mibu Plant (provisional name), a new shredder dust sorting facility, scheduled to commence
operations in August 2025

* CCU: Carbon dioxide Capture and Utilization; CCUS: Carbon dioxide Capture,
Utilization and Storage.
Both of these technologies offset carbon emissions by capturing and storing
emitted CO2 and converting it into new products or energy.

Collaboration with Ichihara City—a “SDG Future City”
Ichihara City, the local municipality where this businessproject is located, was selected by the Cabinet Office of Japan
in fiscal 2021 as the first “SDGs Future City” in Chiba
Prefecture, and is stepping up efforts to become a city thatsymbolizes the SDGs—a vision which also aligns with that of
the TRE Group.
In addition, the two existing sites of the Group havedeveloped environmental businesses with the understanding
and cooperation of the local government and community,
contributing to community development and establishing an
ongoing relationship of trust.

Building on this foundation, we will maintain a strong
partnership with local government throughout this businessproject and fulfill a key role delivering waste collection,
treatment, recycling, and power supply services that benefit
the local community. In addition, we will also develop disaster
resilience functions to prepare for possible disasters such as
an earthquake centered directly under Tokyo metropolitan
area or in the Nankai Trough region, strengthening our role asa provider of key societal infrastructure that supports the
local community and a company that grows together withthe region.

The TRE Group’s existing facilities

Tokyo

Facilities currently being studied

Chiba

Ichihara
City

Green Power Ichihara Co., Ltd.

REVER CORPORATION’s Ichihara Plant

35

TRE HOLDINGS CORPORATION Integrated report 2023

Perspective drawing of the new Mibu Plant (provisional name)

REVER CORPORATION reduces dust disposal costs by sorting
the shredder dust discharged from its large shredders andextracting valuable materials such as metals and plastics,
which are then sold. To date, mixed metals (heavy dust)* havebeen previously sorted and volume reduced at REVER’s Nasu
Plant, and the post-shear dust sorted and volume reduced at
the Funabashi Plant. However, in order to further promote
recycling and reduce dust treatment costs, the Company has
decided to establish the Mibu Plant (provisional name), a
shredder dust sorting facility, on approximately 11,000 m2 ofland that it owns in the town of Mibu, Tochigi.
In establishing this plant we aim to collect shredder
dust, which had been incinerated or landfilled, from the Group's
sites located in the northern Kanto region and recycle metals
and plastics in an efficient and stable manner. We also aim to
reduce CO2 emissions by equipping the facility with a solar
power generation system, recovering approximately 50% ofcollected shredder dust as resources, and manufacturing andsupplying RPF (solid fuel).
Amid accelerating efforts to achieve carbon neutrality
and a circular economy, we believe that internalizing shredder
dust processing and promoting recycling are key initiatives toensure the sustainability of our business.

Through this plan, we aim to move preemptively tomeet the growing environmental awareness of waste
emitters, while ensuring that the TRE Group secures its
competitive edge in the shredder business as we work tocreate an efficient recycling society and carbon-neutral society.
* A mixture of non-ferrous metals such as aluminum, copper, stainless steel,as well as plastics, etc.

Shredder dust

TRE HOLDINGS CORPORATION Integrated report 2023

36

Feature

3

Introduction  |  Part 1 Corporate Profile  |  Part
Part 2 Vision and Strategy  |  Part
Strategy
3 ESG  |  Corporate Data

Further enhancing recycling business—strengthening glass recycling capabilities
In this feature, we highlight our efforts to recycle glass—the “missing piece” in our ongoing endeavor to recycle
all types of materials as a comprehensive environmental management company.

To achieve a truly efficient recycling society, it is vital tobroaden our scope beyond fields where recycling technology
has already advanced—such as iron, stainless steel, andother metals, as well as plastics and wood—to enable all
resources to be recycled and used effectively. One area thathas attracted much focus in recent years is glass recycling.
Glass has a wide range of applications in society, withplate glass used as a building material and bottle glass used
for beverages. Although glass manufacturers, municipalities,
and beverage manufacturers are working to collect and reuse
glass as well as recycle it as a raw material (cullet), in manycases glass is still landfilled at final disposal sites.
Meanwhile, glass manufacturers, who are endeavoring
to make their operations carbon neutral, are increasingly
seeking high quality glass cullet as using recycled raw
materials helps reduce CO2 emissions in the glass
manufacturing process.
In addition, demand for glass recycling is projected toincrease significantly in the future in the following two fields.
The first area is glass used in solar panels. The
increase in the number of solar panels installed across Japanin recent years presents a future challenge to ensure thatthese panels are properly disposed of and recycled, as asignificant volume of waste will require disposal when theyreach end of life.
The second area of demand growth is automobile
windshields. Although windshields are primarily landfilled as

automobile shredder residue (ASR) at present, a shift fromlandfilling to recycling is currently underway, including
government-led efforts to study the introduction of a“dismantling incentive system (provisional name)”.
For the TRE Group, tackling the challenge of glass
recycling not only represents a major business opportunity,
but also a way to contribute to solving societal challenges andto strengthen our all-round capabilities as a waste treatment
and recycling company. We therefore decided to clearly
position JW GLASS RECYCLE CO.LTD, which was integrated asa subsidiary by TAKEEI CORPORATION in our first M&A project
following the TRE Group's establishment in 2022, as a
strategic subsidiary tasked with strengthening the Group's
glass recycling business. In March 2023, TRE HOLDINGSCORPORATION acquired all shares in JW GLASS RECYCLE
CO.LTD and changed its name to TRE GLASS CORPORATION.
Since its foundation in 1951, the company has
expanded its glass recycling business across Japan, including
Tokyo, Gunma, Shizuoka, and Hokkaido prefectures, providing
a stable supply of high-quality recycled glass cullet throughthe adoption of advanced technologies, backed by the trust
and technical prowess it has cultivated over the years. Goingforward, TRE GLASS CORPORATION will play a crossfunctional role in the Group's recycling business, driving thehorizontal deployment of technology and knowledge as wellas improvement of equipment in order to boost the Group's
overall glass recycling capabilities.

Solar panel recycling business at Shinshu Takeei Co., Ltd.
As part of our efforts to strengthen its glass recycling
business, the TRE Group has begun working to develop asolar panel recycling business.
Solar panel installation across Japan has grownfollowing the introduction of the Excess Electricity Purchasing
Scheme for Photovoltaic Power in 2009 (replaced by the
Feed-in Tariff (FIT) scheme in 2012). As solar panels have alife span of approximately 25 to 30 years, the volume ofpanels requiring replacement and disposal is expected to risesignificantly from around 2030. Proper treatment andrecycling of solar panels requires advanced technology andspecialized equipment. However, at present there areinsufficient processing facilities to handle the expectedvolume of waste, posing a challenge for society.
To address this challenge, Shinshu Takeei Co., Ltd.,
located in Suwa City, Nagano, has launched a solar panel
recycling business. In December 2021, the company obtained
a license from Nagano Prefecture to process end-of-life solar
panels, and is conducting research and development toestablish processing methods.
In the future, TAKEEI CORPORATION also plans tolaunch an identical business at its Soma Plant located in
Soma City, Fukushima. With a 1 GW mega-solar facility
located nearby, the Soma Plant will focus on collecting
unneeded or broken solar panels, as well as building a
network with solar panel reuse companies.

Crushing and separating an used solar panel glass

The company has already received a permit to install
designated processing equipment in accordance with
Fukushima Prefecture ordinances, and is currently in theprocess of renovating existing equipment and installing dust
collectors, crushers, and other machinery.
Going forward, the TRE Group will leverage theexpertise of Shinshu Takei Co., Ltd. and TRE GLASSCORPORATION to improve the quality of its glass cullet andpromote “glass-to-glass” recycling.
We are also exploring ways to recycle all of the glass
separated from solar panels, including leveraging the Group's
patented technology to utilize the glass effectively as a raw
material in the manufacture of recycled products.

Upgrading equipment to meet diversified and large-scale glass recycling needs
Glass cullet (image)Construction sites, end-of-life vehicles

Panels with different
specifications

Upgradingequipment

Windshield glass
Plate glass
etc.

TRE GLASSCORPORATION

Handling
diversified glassprocessing needs

An aerial view of the Soma Plant

37

TRE HOLDINGS CORPORATION Integrated report 2023

TRE HOLDINGS CORPORATION Integrated report 2023

38

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Overview of businesses by segment (1)Waste Treatment & Recycling Business
The TRE Group provides one-stop waste management solutions spanning waste collection and transportation torecycling and final disposal, fulfilling an essential societal infrastructure role in the realization of a circular
economy where resources are recycled in their entirety.

Overview and Features of the Business

Progress Toward Medium-Term Business Plan
and treatment facilities to recycle unused resources that in
the past had been landfilled for being difficult to recycle, byimproving sorting accuracy, is an essential task.
To this end we are working to recycle unused resources
through initiatives including proactive capital expenditure andimprovement of our treatment processes.
This high-level recycling technology will not only
enable more efficient use of resources, but will also prolong
the life of final landfill sites, improve fuel and energy selfsufficiency, and contribute to increased profits for the Group
due to cost reductions.

The Waste Treatment & Recycling Business collects andtransports waste generated primarily at construction anddemolition sites and receives it at large-scale intermediate
processing facilities. We are actively working to improve ourrecycling efficiency. Waste delivered to our facilities is sorted,
cleaned of extraneous material, crushed, and compressed to
extract reusable metals and other materials. Meanwhile,waste plastic, wood waste, and paper waste is molded into
RPF (solid fuel)*1.
Although intermediate treatment processes generate
residues that are difficult to recycle, these are properly
disposed of by incineration or landfill at a final disposal site.
In order to achieve an efficient recycling society, in
addition to proper treatment of waste in compliance with laws
and regulations, the development of processing technology*1 R
 PF: an abbreviation of “Refuse-derived paper and plastics densified fuel”
A high-grade solid fuel composed mainly of waste paper and plastics,
which are difficult to recycle as materials. RPF emits approximately 33%
less CO2 than coal when the same amount of heat is recovered (Source:
Japan RPF Industry Association).

Business Environment and TRE’s Strengths

Initiatives

While construction costs in the construction industry, which is
closely linked to our business, continue to increase due tohigher material prices, new housing starts and construction
orders are showing a general recovery trend, supported bypent-up housing and construction demand that was
postponed due to the COVID-19 pandemic.
Amid such conditions, during the fiscal year ended
March 31, 2023, the second year of the Medium-Term Business
Plan, net sales in the Waste Treatment & Recycling Businesswere 25,662 million yen and segment profit was 4,210 million
yen, due to a steady increase in deliveries received fromredevelopment projects, etc., an increase in revenue from new
construction and demolition projects and an increase in thevolume of waste plasterboard received, the recovery ofvaluable resources through advanced sorting of waste atintermediate processing facilities, production of solid fuel RPF
from waste plastic and other materials, and efforts to added

value and reduce costs through commercialization of products
such as Eco-Foam™ secondary material for steelmaking
processes, which is produced from collected dust.
During the current fiscal year, in addition to winningorders from large-scale public redevelopment projects aimed
at building national infrastructure resilience in the Tokyo
metropolitan area, and measures to improve profitability byenhancing sorting and classifying of valuable materials atintermediate processing facilities, we will continue to invest
proactively in facilities to add value to and commercialize
waste materials. In particular, the TRE Group as a whole will
endeavor to recycle waste glass by handling solar panels,
which are expected to generate a large volume of waste in the2030s and an area where recycling needs are expected togrow, in addition to construction glass and used automobile
glass. In conjunction with this, we will systematically pushforward with initiatives to reduce our CO2 emissions.

FY ended Mar. 2021

•E
 xpansion of legal framework for promotion of acircular economy•G rowing demand to reduce environmental
impact across the entire product life cycle• We possess an integrated waste treatment
system that spans collection and transportation,intermediate processing and recycling, tofinal disposal• We own several of Japan’s largest advanced
sorting and processing facilities, primarily
located in the Tokyo metropolitan area•C onstructing and operating advanced sorting
and recycling facilities capable of handlingmaterial, chemical, and thermal recovery of
waste plastic in accordance with theenforcement of the Act on Promotion of
Resource Circulation for Plastics•E xpertise in proper waste treatment andrecycling acquired over many years of experience•D eveloping the TRE Group’s first waste
incineration and power generation businessthrough a joint venture with Hitachi Zosen
Corporation, including the utilization of Hitachi
Zosen’s CCU and CCUS technologies•A bility to respond to natural disasters,
specialized projects, etc.

 xpanding in-house managed landfill sites for•E
final disposal of final residual waste•A bility to handle a wide range of waste types
through our diverse Group companies

39•E nhancing waste recycling by installing new
equipment and renovation of existing facilities toenable advanced sorting

TRE HOLDINGS CORPORATION Integrated report 2023

FY ended Mar. 2022

FY ended Mar. 2023

Net sales

24,738 million yen

25,146 million yen

25,662 million yen

Operating profit

3,468 million yen

5,113 million yen

4,210 million yen

14.0%

20.3%

16.4%

Operating profit margin

TopicsEnsuring proper treatment of difficult recycle wastes
During intermediate processing and recycling of waste, there
will inevitably be some residual waste that is difficult to recycle.
Monzen Clean Park Co., Ltd. is currently constructing the Monzen
Final Disposal Site (provisional name) in Wajima City, Ishikawa,
as a facility designed to ensure safe and proper landfill disposalof such residual waste. When completed, this massive site whichis scheduled to start operation in November 2023 will havea landfill capacity approximately 2.8 times the size of Tokyo
Dome stadium and a landfill life of approximately 50 years.
The TRE Group continues its constant pursuit of new ways torecycle, commercialize, and add value to waste materials,
while at the same time working to provide safe and reliable
integrated treatment services to ensure that these residual
waste materials are properly disposed of at landfill sites.

Monzen Final Disposal Site (provisional name), a managed landfillsite currently under construction

TRE HOLDINGS CORPORATION Integrated report 2023

40

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Overview of businesses by segment (2)Resource Recycling Business
Building on our waste treatment technologies that we have refined over more than a century, we contributeto an efficient recycling society by thoroughly recycling scrap metal, end-of-life vehicles, and scrappedhome appliances.

Overview and Features of the BusinessIn the Resource Recycling Business, we are developing
exhaustive recycling services in four main resource
categories: scrap metal from manufacturing plants andbuilding demolition sites, end-of-life vehicles, used home
appliances as designated under Japan’s Act on Recycling ofSpecified Kinds of Home Appliances, and metal waste such as
office appliances and fixtures. Recycled resources that arecollected are treated appropriately according to their type andcirculated back to other industries via parties such as trading
companies and electric furnace manufacturers.
In the automotive recycling field, we have established acirculation system for collecting tires, batteries, and engines,
and redistributing reusable parts to maintenance facilities inJapan as well as overseas markets. The bodies ofdisassembled automobiles are also crushed and sorted forrecycling into construction steel, secondary alloy ingots, andother resources.

Furthermore, in April 2023 we formed a business
partnership with Sumitomo Chemical Co., Ltd. to recycle plastics
derived from end-of-life vehicles, and are working to develop acircular economy in the automotive industry and “Car to Car”
recycling by collecting waste plastics from end-of-life vehicles
and recycle them for use in automotive parts.
In addition to these initiatives, we are also exploring thepossibility of building a new glass recycling scheme incooperation with TRE GLASS CORPORATION using glass
derived from end-of-life vehicles.
In the home appliance recycling field, we not only
contributed to the establishment of the Act on Recycling ofSpecified Kinds of Home Appliances as a result of our joint
research with a major home appliance manufacturer, but also
contribute to the recycling of 1.3 million waste home
appliances per year—approximately 10% of all scrappedhome appliances currently generated in Japan.

Business Environment and TRE’s Strengths

Initiatives•A mid accelerating moves toward carbon
neutrality, we possess integrated business
operations spanning waste collection to recycling•S trengthening investment in recycling facilities
for advanced sorting to improve recycling rate
and reduce CO2 emissions•F ull range of waste treatment technologies andfacilities to meet needs of other industries
aiming to improve their resource efficiency• I n-house dust processing and development ofan efficient scheme for recovering valuable
resources in order to realize a circular economy•O perate six large crushers* in the Kanto region,
serving as recycling infrastructure for the Tokyo
metropolitan area•E
 stablishing partnerships with Sumitomo
Chemical and other companies to identify
diverse needs of industries and establish new
resource recycling models

 ne of Japan’s largest automobile, home•Oappliance, and small home appliance recyclers• We provide total solutions to the waste
challenges facing waste generators in order toachieve sustainable resource recycling* Large crushers are defined as those whose main body has ahorsepower of 1,000 hp or greater.

41

Progress Toward Medium-Term Business Plan

TRE HOLDINGS CORPORATION Integrated report 2023

In the fiscal year ended March 31, 2023, the second year of theGroup's Medium-Term Business Plan: Toward an Efficient
Recycling and Carbon-Neutral Society (hereafter “MTP”),
although the Resource Recycling Business experienced adrop in steel scrap prices due to the Russia-Ukraine conflict,the trend toward carbon neutrality remained unchanged, andthe impact of the decline in scrap steel prices was minimized
by expansion of our sales channels, leveraging our strength ofour business sites in the Kanto region.
However, revenue was impacted significantly due tooperational restrictions stemming from the rebuilding of
FY ended Mar. 2021

 ccelerating development of technologies to•Arecover resources more efficiently in anticipationof the mandatory use of recycled plastics, which
the EU is taking the lead in implementing

FY ended Mar. 2022

FY ended Mar. 2023

Net sales

31,408 million yen

46,418 million yen

44,866 million yen

Operating profit

2,660 million yen

5,454 million yen

3,139 million yen

8.5%

11.7%

7.0%

Operating profit margin• Implementing a range of initiatives to reduce GHG
emissions in order to achieve carbon neutrality

REVER CORPORATION's Fujisawa Plant, higher electricity andfuel costs, and a decrease in the number of end-of-life
vehicles generated.
Although operating costs are forecast to remain high inthe fiscal year ending March 31, 2024, the final year of the
MTP, we expect to achieve the targets set in the original planby implementing a broad range of recycling initiatives as thenumber of end-of-life vehicles recovers, and by securing
spreads through sound inventory management while
responding to market fluctuations.

TopicsPushing forward with dust recycling efforts
In the Resource Recycling Business, in which recovery ofvaluable resources via advanced sorting and recycling is a
key pillar of our growth strategy, we have focusedparticularly in recent years on reducing the amount of dust
generated in the waste treatment process. Although wehave already been promoting recycling in this area byleveraging the characteristics of our facilities such as
REVER CORPORATION's Nasu Plant for mixed metals andFunabashi Plant for dust from hydraulic shears, we willfurther strengthen our recycling efforts going forward.
The Funabashi Plant has acquired a new industrial
waste disposal license for “classification” in order toaccelerate dust recycling efforts, while the Ichihara Plant
has installed and begun operating a urethane dust molding
and solidification line to convert urethane dust into RPF(solid fuel). In addition, REVER CORPORATION plans to open
the Mibu Plant (provisional name) in August 2025, which will
be responsible for collecting, sorting, and recycling dust

generated at REVER's Kitakanto Plants, further advancing
in-house processing of dust and resource recycling.
Through these initiatives, we will contribute to the
reduction of dust and CO2 emissions, while working toward
the TRE Group's vision of an efficient recycling society and acarbon-neutral society.

Mixed metal

TRE HOLDINGS CORPORATION Integrated report 2023

42

Introduction  |  Part 1 Corporate Profile  |  Part
Part 2 Vision and Strategy  |  Part
Strategy
3 ESG  |  Corporate Data

Overview of businesses by segment (3)Renewable Energy Business
The TRE Group has established business models for “local production for local consumption” of electricity using
unused resources from domestic forests as fuel, as well as woody biomass power generation using fuel derived
from waste from the construction industry. We have acquired forested land and are working to conduct soundforest management to help create a carbon-neutral society.

Overview and Features of the BusinessIn the TRE Group's Renewable Energy Business, we do not, inprinciple, rely on imported timber or fuelwood, instead working
to promote energy recovery by utilizing unused forest resources
such as thinned wood, pruned branches, and forest waste as fuelat our six woody biomass power plants in Japan, with theelectricity generated returned to local communities.
By working in close partnership with local forestry
cooperatives and material producers to maintain and nurture
forests and ensure stable procurement of fuelwood, we are
involved in the entire forestry process, from the sale of timberto the supply of wood chips and reforestation after logging,making the most of the forest's diverse functions.
We currently operate in four areas of the Tohoku region,
supplying electricity to the region using collected wood as fuelProgress Toward Medium-Term Business Plan
to achieve “local production for local consumption” ofelectricity, as well as cultivating sweet tomatoes and wood
ear mushrooms in greenhouses using the residual heat frompower generation.
We are also combining our woody biomass power
generation prowess with our expertise in proper waste
treatment and recycling to develop hybrid schemes thatutilize waste-derived fuel for power generation in
Yokosuka City, Kanagawa, and Ichihara City, Chiba. We
procure biomass fuel primarily from the forestry operationsof TAKEEI Forestry Co., Ltd., and are working to enhance ourpower retailing business, which provides a stable supply ofelectricity generated by the TRE Group to customers via
Takeei Denki Co., Ltd.

In the fiscal year ended March 31, 2023, the Group faced achallenging operating environment, including high wholesalemarket prices for electricity due to tight supply and demand,
as well as equipment malfunctions and a decline in power
generation output due to a decline in the quality of woody
biomass power generation fuel as a result of unfavorable
weather conditions and a difficult procurement environment.
Despite these circumstances, however, operating conditions
are gradually improving as a result of our efforts to make
improvements to ensure safe operation, while in the power
retailing business utilization of non-FIT fuel (RPF, etc.) by
FY ended Mar. 2021
Net sales
Operating profit

Business Environment and TRE’s Strengths• Increasing societal momentum toward
carbon neutrality and growing demand forrenewable energy• We have established an integrated system inJapan for procuring unused forest resources
as fuel for power generation, manufacturing
wood chips, and generating and retailing
electric power•R estoring and revitalizing the domestic forestry
industry by expanding the area of forest undermanagement and utilizing resources form theGroup-owned forests to ensure a stableprocurement of fuel for power generation overthe medium- to long-term•E stablishing a stable operating system forwoody biomass power generation plants• We have established a stable fuel procurement
framework through close cooperation with local
forestry cooperatives and material producers•P romoting initiatives to return power generatedusing waste from construction industry toconstruction sites•A s a forestry company, we work with local
forestry cooperatives to conduct soundmanagement of the Group-owned forests fromafforestation through to logging, and ensuresustainable forest management that pays due
consideration to biodiversity•E xpanding sales of renewable energy with
non-fossil fuel certificates• We maintain strong trust relationships withlocal municipalities based on “local production
for local consumption” of electricity•A ccumulating and advancing our expertise inwoody biomass power generation

43

Initiatives

TRE HOLDINGS CORPORATION Integrated report 2023

• Vitalizing regional economies throughpartnerships with local industry and society(creation of employment opportunities)

Operating profit margin

Green Power Ichihara Co., Ltd., the review of sales contracts,and expansion of services to construction sites contributed tosales and profits. As a result, segment sales were 13,794
million yen, and segment profit was 688 million yen.
TAKEEI Forestry Co., Ltd. will continue to acquire forestsand promote effective use of the Group's forest resources, while
the Group will pursue stable fuel procurement and control fuelmoisture levels at its six woody biomass power generation plants,
in order to further enhance the stability of its power plant operations.
We are also striving to expand sales of renewable energy with
non-fossil fuel certificates in our power retailing business.
FY ended Mar. 2022

FY ended Mar. 2023

11,457 million yen

12,617 million yen

13,794 million yen

325 million yen(305 million yen)

688 million yen

2.8%

–

5.0%

Initiatives by TAKEEI Forestry Co., Ltd.
TAKEEI Forestry Co., Ltd. was established in May 2020 with theaim of providing a stable medium- to long-term supply of fuelfor power generation and contributing to the regeneration andrevitalization of the domestic forestry industry. In April 2021,
the company acquired approximately 240 hectares ofmountain forest in Hanamaki City, Iwate, and has been making
preparations to commence forestry operations, including
encouraging employees to obtain Forest Management Plannercertification. Recently, in cooperation with the local Hanamaki
City Forestry Cooperative, the company has prepared a forest
management plan, received accreditation, and begun full-scale
forest management operations. Based on this plan, thecompany will conduct logging*1 and thinning*2 between 2022
and 2027, as well as plant Japanese larch trees, for which Iwate
Prefecture is well known. With the implementation of this forest
management plan, we have established an integrated schemethat encompasses the procurement of unused forest resources
for use as fuel in power generation, their conversion intowood chips for supply, power generation, and power retailing.
In April 2023, the company acquired approximately 40
hectares of protection forest*3 from a local production
forestry cooperative.

As with the forests the company has already acquired,
the logged sites will be reforested through afforestation,
contributing to the regeneration and revitalization of theforestry industry, while also playing an important role inpassing on our limited forest resources to the next generation.

Approx. 240 ha of mountain
forest acquired in Hanamaki City
*1 Logging: Logging for replacement/preparation for replacement or the complete
logging of upper layer trees in forests with more than one canopy layer.
*2 F orest thinning: The removal of selected trees to reduce competition
among growing trees, in line with the degree of crowding.
*3 P rotection forest: Forests designated by the Minister of Agriculture,
Forestry and Fisheries or prefectural governors with the objective ofachieving a specific public purpose, such as cultivating water sources,
protecting against landslides or other disasters, or preserving andfostering habitats. In protection forests, the felling of standing trees andalteration of the topography of the land is regulated in order to ensure thatthe forest functions in accordance with its designated purpose.

TRE HOLDINGS CORPORATION Integrated report 2023

44

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Overview of businesses by segment (3)Renewable Energy Business
Takeei Denki Co., Ltd. established through integration of five power retailing companies
The TAKEEI Group's five power retailing companies*1 were
integrated effective September 1, 2022 with Yokosuka Urban
Wood Power as the surviving company, and the company
name changed to Takeei Denki Co., Ltd., in order to further
grow the Renewable Energy Business and enhance our ability
to respond to customer needs by leveraging the expertise
accumulated through our power retailing business, as well as
to reduce costs by streamlining and improving operations
and bringing previously outsourced processes in-housethrough integration.
This integration allows Takeei Denki Co., Ltd. to
conduct overall management of the annual power generation
output of the six power plants operated by the TAKEEI Group,
which totals approximately 566 GWh (equivalent to theannual power consumption of approximately 160,000
average households).
Takeei Denki Co., Ltd. has already begun working toconduct efficient sales and marketing activities to meet theneeds of customers wishing to use electricity generated byrenewable energy. We are also working on the establishmentof a “resource and energy recycling scheme” where wood
waste from construction sites is used as fuel for woody
biomass power generation. The resulting renewable energy is
supplied to our partners, who are general contractors andreal estate developers, for power at construction sites.
Furthermore, in the medium- to long-term, we will pursue ahigher level of profitability analysis by centralizing
management of the power retailing business, as well as
improving the efficiency of supply/demand management andJoining the Keikyu Group's “Miura no Mori” Forest Project

accumulate expertise to enhance our ability to resolve
specialized issues.
To mitigate the risk of market price fluctuations, GreenPower Ichihara Co., Ltd. sells non-FIT power generated using
renewable sources such as solid fuel RPF directly to theJapan Electric Power Exchange (JEPX). In the future we willsecure a larger supply of non-FIT power sources by
increasing production and securing a stable supply of RPF
within the Group, which will further enhance our ability torespond to potential fluctuations in market prices.
In addition, we will strive to achieve a stable power
supply by actively expanding renewable energy powersources and developing our own power sources, including
non-FIT sources. We will also sell non-fossil fuel certificates*2that comply with international initiatives such as Science
Based Targets (SBT), the Carbon Disclosure Project (CDP), andRE100 to promote initiatives that enable customers to prove
they are using electricity derived from renewable sources,
thereby further contributing to the realization of a carbonneutral society.
*1 The TAKEEI Group’s five power retailing companies:
Tsugaru Apple Power Co., Ltd., Hanamaki Ginga Power Co., Ltd., Daisen
Komachi Power Co., Ltd., Yokosuka Urban-Wood Power Co., Ltd., andFukushima Mirai Power Co., Ltd.
*2 N
 on-fossil fuel certificate:
A system in which companies can prove that they have used renewableenergy and reduced their GHG emissions by purchasing certificates fromcompanies that generate electricity from renewable energy sources.
Non-fossil certificates are issued in proportion to the amount of electricity
that a company generates by using renewable energy.

Benefits of integrating the Group’s five power retailing companies
Five power retailing companies
Tsugaru Apple Power Co., Ltd.
Hanamaki Ginga Power Co., Ltd.
Daisen Komachi Power Co., Ltd.
Yokosuka Urban-Wood Power Co., Ltd.
Fukushima Mirai Power Co., Ltd.
TAKEEI CORPORATION(power retailing division)

Promotion of
non-fossil fuelcertificates sales

Consolidation andoptimization ofmanagement
structure

Established
Takeei Denki Co., Ltd.

Improved efficiencyof administrative
operations

Five electric power retailingcompanies were integrated toform Takeei Denki Co., Ltd. in order toimprove efficiency and reduce costs.

Reduction in
outsourcing costs
via insourcing ofoperations

Centralized management system andintegrated management of
supply/demand balance

Enhancement of
non-fossil fuelcertificate sales
initiatives

Increased
profitability

Strengthen sales of non-fossil fuel certificatesover medium- to long-term by expanding in-house
power sources (including non-FIT sources)45

TRE HOLDINGS CORPORATION Integrated report 2023

Collaborating to create a sustainable society
through woody biomass power generation
The TRE Group operates six woody biomass power generation
businesses in locations including the Tohoku region, Yokosuka
City in Kanagawa, and Ichihara City in Chiba .
Keikyu Corporation (hereafter “Keikyu”) approached the
TRE Group regarding participation in the Keikyu Group's Miurano Mori forest project, as Keikyu was considering woody
biomass power generation as a measure to utilize
approximately 100 hectares of its company-owned forests
primarily located on the Miura Peninsula.
The project aims to further utilize the CO2 absorptionfunctions of forests through sound forest management, and tocultivate beautiful and functionally rich forests for the future.
The Kanagawa Prefecture Federation of Forest Owners' Cooperative Association, an organization with extensive
knowledge of forest management in the prefecture, iscooperating in the project by thinning forests to enable sunlightto reach the ground and new trees to grow, regenerating thewoodland. In addition, the trees thinned via this process areused as woody biomass fuel for power generation, firewood forcampsites, and material for woodcraft workshops.
The TRE Group helps to recycle resources by converting
logged trees into fuel at Takeei Green Recycling Co., Ltd., which
are then used to generate electricity at the Yokosuka Biomass
Power Generation facility. This electricity is then supplied to
Takeei Denki Co., Ltd. for sale to Keikyu Group’s facility as electricity
with FIT non-fossil fuel certificates with tracking information.
This is one example of the progress we are making incollaborating with other industries on woody biomass power
generation. Going forward, we will continue working to contributeto the realization of an efficient recycling society and a carbonneutral society by proactively exploring proposals from a wide
range of companies who share our vision of a sustainable society.

Takeei Green Recycling Co., Ltd.

Trees logged from forests in the Miura no Mori project areused as woody biomass fuelTakeei Green Recycling Co., Ltd., which operates the Yokosuka
Biomass Power Generation facility, uses trees from Keikyuowned forests that have been logged in an appropriatemanner as renewable woody biomass fuel (wood chips) for
power generation.
Following the project's launch,
the Keikyu Group consulted with us
regarding the possibility of utilizing
trees near Keikyu railway tracks,
which are felled to ensure the safe
operation of trains, as woody
biomass fuel. We promptly studied
Trees near railway tracks
conditions along the railroad, andfelled for safety purposes
are also used as fuel for
quickly responded to utilize thebiomass power generation
biomass of this woody material.
Takeei Denki Co., Ltd.

Contributing to sustainable resource recycling
The electricity generated by the Yokosuka Biomass Power
Generation facility is sold as “electricity with FIT non-fossil fuelcertificate with tracking information*” by Takeei Denki Co., Ltd.,
which manages the TRE Group's power retailing business, toHayama Marina Co., Ltd., a Keikyu Group company. This
enables the Keikyu Group’s facility to use net 100% renewableenergy, achieving carbon neutrality.
* FIT non-fossil fuel certificate with tracking information:
A certificate indicating the environmental value of electricity generated fromnon-fossil fuel power sources (power sources that generate electricity
without using fossil fuels).

Message from project representative
We hope to continue working together with the TRE Group to realize a recyclingoriented society

Yusuke Ito

Assistant Manager,
Business Management Department,
Development and Administration of
Facilities Headquarters,
Keikyu Corporation

Keikyu Corporation launched the “Miura no Mori” forest project in February 2023 with the aim ofpromoting the sound management of company-owned suburban forests on the Miura Peninsula
as part of our efforts to create a sustainable society.
As we studied ways to utilize the trees felled in our forests as woody biomass fuel, we
learned of the Yokosuka Biomass Power Generation Facility, a TRE Group facility located at
Oppama Station on the Keikyu Line, also in Yokosuka City, who kindly agreed to accept ourthinned wood and felled trees. TRE was very responsive to our proposal, also agreeing to use
trees felled near our railway tracks as woody biomass fuel. This project has also attracted
growing interest within Keikyu Corporation. We hope to continue working with the TRE Group to
help realize an efficient recycling society.

TRE HOLDINGS CORPORATION Integrated report 2023

46

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Overview of businesses by segment (4)Toward an evolution in our business functions

Other

Budgeting 1 billion yen per year (1% of net sales) for researchand development

Environmental Engineering Business / Environmental Consulting Business
The TRE Group also operates an Environmental Engineering Business in which
we develop, manufacture, and sell environment-related equipment, plants, andspecial purpose vehicles, and an Environmental Consulting Business that provides
measurement certification services, environmental protection works, hazardous
waste surveys and analyses, and environmental assessment-related services.

The TRE Group's Board of Directors has passed a resolution to budget nearly 1 billion yen per year for investment in research anddevelopment (R&D) in order to bolster efforts to generate future business with the aim of adding new value to waste to create an efficient
recycling, carbon-neutral society.
Although new technologies require time to develop and commercialize, we are working to pursue R&D through a range of channels, including
regional co-creation initiatives, improvement of existing businesses and equipment, and promotion of industry-academia partnerships.

Regional co-creation initiatives

Progress Toward Medium-Term Business Plan
In the Environmental Engineering business, Fuji Car
Manufacturing Co., Ltd., which develops, manufactures, andsells environmental machinery, special vehicles, and otherproducts, maintained a solid order book during the fiscal year
under review. However, profits declined despite an increase inrevenue due to a longer manufacturing lead time caused bydelays in procuring parts and materials from overseas andhigher-than-expected procurement costs.
In the Environmental Consulting Business,
Environmental Conservation Co., Ltd. and Earth-Appraisal Co.,

Utilizing rice husks as solid fuel for biomass power generation
Ltd, which provide environmental analysis services,
continued to receive steady orders for asbestos analysisrelated services and business performance remained strongas the Air Pollution Control Act—the main law in Japan
governing asbestos—came into effect in three annual phases
starting in 2021, tightening regulations on preliminary
surveys on asbestos use during the demolition and renovationof buildings.
As a result, segment sales were 7,374 million yen, andsegment profit was 325 million yen.

With the recent “wood shock” and other factors leading to an ongoing
global shortage of woody biomass fuel for power generation, securing
a stable and plentiful procurement of inexpensive domestic biomass
fuel is a pressing task for the TRE Group. Under these circumstances,
Tsugaru Biomass Power Generation Co., Ltd. has focused its attention
on rice husks as a source of biomass fuel. Although rice husks havetraditionally been used as compost or bedding for livestock, they are
increasingly being disposed due to a decline in the number oflivestock farmers in Japan. After extensive studies in cooperation

with local farmers and pelletizing equipment manufacturers, weestablished a scheme for pelletizing rice husks into a solid fuel called“Momigalite” that can be used as fuel for power generation.
This new business model not only transforms material thatwas previously disposed into a valuable resource, but also reduces
CO2 emissions generated via transportation and other processes. We
will continue advocating this technology with the aim of having ricehusks certified as a biomass fuel under the feed-in tariff (FIT) systemin the future.

Improving existing businesses and equipment
Net sales
Operating profit
Operating profit margin

FY ended Mar. 2021

FY ended Mar. 2022

FY ended Mar. 2023

6,828 million yen

7,102 million yen

7,374 million yen

349 million yen

441 million yen

325 million yen

5.1%

6.2%

4.4%

TopicsDevelopment of SHELLANOS fine shredder for precision shredding andseparation of miscellaneous scrap
In recent years, metal resources such as ferrous andnonferrous metals have become important strategic
resources from an economic security perspective.
Fuji Car Manufacturing Co., Ltd. conducted joint
development with customers to develop the SHELLANOS
fine shredder, which is capable of shredding and separating
miscellaneous scrap with high precision.
SHELLANOS is a revolutionary vertical shredderthat combines outstanding separation performance,
processing capacity, and ease of maintenance, and canshred and separate products such as used small
electronic/electrical equipment, small motors with highprecision—a feat that had been difficult to achieve withconventional shredders.
As a result of this improved separation
performance, metals which could previously only be
shipped in low grades as mixed metals, with ferrous andnonferrous metals unseparated, can now be separated into
ferrous and nonferrous metals, enabling shredded waste to
be processed into high-value-added products.

Main features(1) High-speed rotation type swing hammer system for
improved crushing performance(2) Easy maintenance by opening and closing casing(3) Longer hammer and liner life and reduced wear
replacement work due to forward/reverse
rotation structure(4) Screen opening size can be adjusted as necessary(0 to 9 mm) via motorized opening/closing device

Increasing quality of waste tile carpet recycling
Tile carpets, which are widely used in offices as flooring, consist of afiber layer on the surface, which is strongly bonded to a PVC (polyvinyl
chloride) layer on the underside. Although tile carpets had
conventionally been disposed of in landfills due to the difficulty
involved in crushing and separating these two materials, in 2016
TAKEEI CORPORATION installed specialized equipment for thispurpose at Plant No. 2 of its Tokyo Recycling Center. By shaving off thefiber layer, the PVC layer can be crushed and separated, and thecompany has established a scheme in which it supplies recycled PVC(Eco-Flakes) to major tile carpet manufacturers as raw materials.
As the adhesive that remained on the underside of tile carpets
caused problems in the first installed equipment, we subsequently

developed a new cutting plant with the ability to peel off the adhesive.
We have also developed a proprietary crushing process to improve
the accuracy of fiber and PVC sorting. After grinding the material toapproximately 5 mm size pieces in a crusher, sorting of fibers and
PVC, which had been difficult to achieve through cutting alone, isaccomplished through specific gravity sorting and static eliminators
positioned at key points, enabling us to supply Eco-Flakes of evenhigher quality.
We patented this separation and collection process in January
2023. Going forward, we will work to further refine our sorting
technology in order to achieve stable equipment operation andincrease production of Eco-Flakes.

Processing flow for
waste tile carpet
Input waste tile carpets

Cutting process

Shredding process

Crushing process

Sorting process

Fiber layer separated
from PVC layer via cutting

PVC layer shredded into
approx. 20 mm squares

Shredded PVC layer isground by crusher

The remaining fiber andthe calcium carbonate
contained in the PVC arecollected by a sorter

Promoting industry-academia collaboration

Industry-academia collaboration on CCUS technology development in the waste business field
The TRE Group is proactively fostering industry-academia
collaboration with the objective of furthering research anddevelopment and finding new solutions to challenges. As one suchinitiative, we are studying CCUS technology that captures and uses
CO2 as a resource in order to reduce CO2 emissions and achievecarbon neutrality. CCUS stands for Carbon dioxide Capture,
Utilization or Storage, and refers to technologies that offset carbon

by capturing and storing emitted CO2 and converting it into new
products or energy. Specifically, we have concluded a joint
research agreement with Yamagata University and Nihon
University for the development of CCUS technology that can be
employed in the manufacturing process for recycled products
such as recycled concrete aggregate and crushed stone, and are
currently progressing with demonstration experiments.

SHELLANOS fine shredder47

TRE HOLDINGS CORPORATION Integrated report 2023

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48

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Corporate governance

Part
ESG

3

Strengthening ESG to solidify ourmanagement foundation
The TRE Group is committed to maximizing its corporate value and enhancing its governance structure
in order to earn the trust of its various stakeholders.
As a comprehensive environmental management company, we also strive to address diverse environment-related
needs and implement proper measures to address the global challenge of climate change.
Furthermore, we are actively working to create a workplace environment in which our employees can work withfulfillment and peace of mind, and to promote living and thriving together with the local community.

INDEX
50 Corporate governance
53 List of executives
55 Environment

We will establish a suitable corporate governance structure inorder to practice sound, efficient and highly transparent management
Basic approach

Corporate governance structure
Board of Directors

The TRE Group is aware that its businesses are built on thehealthy relationships of trust it has developed withshareholders, employees, business partners, the residents of
the areas around its business locations and various otherstakeholders. Based on that mindset, we have positioned thestrengthening and enhancement of corporate governance asa 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 acompany 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.

The Board of Directors takes important decisions about
management strategies and plans and other matters. It alsosupervisions the execution of business. Three of the eightboard members are outside directors (including two female
members), and the members possess a wealth of experienceand a broad range of knowledge as they include a lawyer, acertified public accountant, and a former Vice-Minister ofAgriculture, Forestry and Fisheries.
When selecting company directors, the Nomination andCompensation committee deliberates on whether they havethe foresight needed for future business expansion as well ason their expertise regarding corporate management andmanagement 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 have appointed four Audit and Supervisory Committee
members. Regarding the committee’s structure, three of themembers (including two female members) are outside
directors so that they can supervise the directors’ executionof business from an independent standpoint.

57 Response to climate change (information disclosure based on TCFD recommendations)
59 Creating pleasant and fulfilling working environments
61 Occupational health and safety

TRE Group corporate governance structure

62 Living and thriving together with the local community

General meeting of shareholders
Appoint/dismiss

Appoint/dismiss

Appoint/dismiss

TRE HOLDINGS CORPORATION

Accounting auditors

Cooperate

Audit
Supervise

Directors not on the Audit andAudit andSupervisory Committee: 4
Supervisory
Committee Directors on the Audit and Supervisory Committee: 4

Cooperate

Audit
Supervise

Cooperate

Group Internal Audit OfficeInstruct

President
and Chief
Executive Officer

Outside directors: 3

ReportInstruct

CSR and Sustainability Committee

Group Internal Controls Committee(Secretariat: Group Compliance Council Office)Executive Committee
ReportCooperate

Compliance Committee(Secretariat: CSR and Sustainability
Promotion Department)

Cooperate

Information Security Committee

ReportConsult

Nomination andCompensation Committee

Select/dismiss

ReportGuide

Recommend

Representative directors: 2

Instruct
Audit and Supervisory
Committee secretariat

Board ofDirectors

Supervise

TRE HOLDINGS CORPORATION(Corporate Planning Division &Corporate Management Division)

Internal audit
Internal control monitoring

SupportReportTRE Group companies
Compliance managers(all risk management departments)

49

TRE HOLDINGS CORPORATION Integrated report 2023

Board of Directors

Auditors

CSR and Sustainability Promotion manager

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Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

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 as adiscretionary 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 the effectiveness of the board of directors and, when
consulted by the Board of Directors, provides suitable reports
on important matters that concern management.

Assessment of the effectiveness of theBoard of Directors
We conduct a third-party survey of all members of the Boardof Directors to increase the effectiveness of the Board. The
survey asks respondents to answer questions regarding thecomposition and operation of the Board of Directors, with results
reported to the Executive Committee and the Board of Directors.
The third party to which the survey was commissioned
also performed a comparison with other companies, withaverage or above average scores for all major survey items
indicating that the Board of Directors is functioning effectively.
Furthermore, we plan to analyze items that had lowscores or for which there was a difference in the scores given
by internal directors and external Audit and Supervisory
Committee members, and make appropriate improvements
to ensure a higher level of effectiveness.

Training for directors

Cross-shareholdings policy

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.

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 fixed basic 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.
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 will takedecisions on directors who are Audit and Supervisory
Committee members after deliberations.

Expertise of directors and outside directors
Corporate
InternalHR/management/
Sales/
Environment/ Production/ Finance/
control/labormanagement governance marketing sustainability technology accounting management
strategy
Director

Legal/
compliance

Sustainability management

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 to longterm. 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.

Policy on constructive dialogue
with shareholders
TRE 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, thepresident 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 growthand increase medium- to long-term corporate value, we havea policy 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.

Naoto Matsuoka
Mitsuo Abe

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.
As one measure toward this, we established the CSR and
Sustainability Committee in June 2022. Through this committee,
we will promote Group-wide, cross-functional initiatives to address
the global challenges of climate change and carbon neutrality, as
well as other sustainability issues via a multifaceted approach.
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 and obtaining
a consensus on them at Executive committee.
The president and CEO, in addition to chairing the CSR
and Sustainability Committee, also chairs the Group Internal
Controls Committee and Executive committee and recognizes
the many sustainability-related issues as the most importantrisk to management. Through speedy decision-making, we willcontinue to discover 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 Committee deliberates plans andmeasures for combating climate change and reports 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.

Takao Suzuki
Mamoru Mitsumoto

TRE Group sustainability management (structure)

Audit and Supervisory Committee

Board of Directors
ReportAkira Kanai

CSR and Sustainability Committee

Fumie Omura*
Hiroyuki Suematsu*

Group Internal
Controls Committee

Tomoko Aramaki*

Committee chairperson:
President and CEO* Outside director, designated as an independent director as stipulated by the Tokyo Stock Exchange and registered with the Exchange.

Cooperate

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

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

Executive committee
Chairperson:
President and CEO

SupportTRE Group companies

51

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Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

List of executives (As of July 1, 2023)

Directors

Audit and Supervisory Committee member

Naoto Matsuoka

Mitsuo Abe

Chairman and CEO

President and COO

Number of shares of the Company held:
10,400Attendance at Board of Directors’ meetings:
14/14

Apr. 1972
Apr. 1999
Apr. 2004
Apr. 2009
Sep. 2015
Sep. 2016
May 2018
Oct. 2021
Oct. 2021
Jun. 2022
Jul. 2022

Joined Mitsubishi Corporation
President and Representative Director, Ueno Tekko Co., Ltd.
President, Metal One Structural Steel & Resource Corporation(currently MM&KENZAI Corporation)
President & CEO, Director, Metal One Corporation
President and Representative Director, SUZUTOKU Holdings
Co., Ltd. (currently REVER CORPORATION)
Director, HIDAKA SUZUTOKU (Thailand) CO., LTD.
President, Representative Director and Executive Officer,
REVER HOLDINGS CORPORATION (currently REVER
CORPORATION)
Member of the Board, TAKEEI CORPORATION (current position)
Chairman and Executive Officer, the Company (current position)
Representative Director, TRE Foundation for SDGs Promotion(current position)
President and chief executive officer, REVER CORPORATION(current position)

Mar. 2016
Mar. 2017
Apr. 2017
Jan. 2018
Jun. 2018
Jun. 2019
Apr. 2020
Jan. 2021
Sep. 2021
Oct. 2021
Apr. 2023
Jun. 2023

Apr. 1973
Jul. 1978
Apr. 1985
Jun. 1996
Jan. 2002
Dec. 2003
Apr. 2006
Jul. 2007
Sep. 2013
Dec. 2015
Apr. 2021
Oct. 2021
Apr. 2023

Retired as Managing Executive Officer, Resona Bank, Limited
Retired as Representative Director and President, Resona
Kessai Service Co., Ltd.
Joined TAKEEI CORPORATION, Executive Officer,
Deputy General Manager, Corporate Planning Division
Executive Officer, Deputy General Manager, Sales Division andGeneral Manager, Related Business Department
Member of the Board, Managing Executive Officer and General
Manager, Corporate Planning Division
Member of the Board, Chief Operating Officer (current position)
Representative Director, T·V Energy Holdings, Inc.
Representative Director, T&H Eco Mirai Co., Ltd.
Representative Director, TEC Takekuma Co., Ltd. (current position)
Director, REVER HOLDINGS CORPORATION (currently REVER
CORPORATION) (current position)
President and Executive Officer, the Company (current position)
Director, REVER CORPORATION (current position)
Representative Director, Green Arrows Holdings, Inc.
(current position)

Takao Suzuki

Mamoru Mitsumoto

Director

Director

Joined Suzuki Tokugoro Shoten Co., Ltd.
(currently REVER CORPORATION)
Director
Managing Director
President and Representative Director
Chairman, Japan Iron and Steel Recycling Institute
Chairman of the Board, Metal Recycling Co., Ltd.
(currently REVER CORPORATION)
Chairman and Representative Director, NAKADAYA CORPORATION(currently REVER CORPORATION)
Chairman and Representative Director, Suzutoku LTD.
(currently REVER CORPORATION)
President and Representative Director,
SUZUTOKU Holdings Co., Ltd. (currently REVER CORPORATION)
Chairman and Representative Director
Chairman and Representative Director,
Major Venous Japan Co., Ltd.
Outside Director, BESTERRA CO., LTD. (current position)
Director, the Company (current position)
Chairman and Representative Director,
REVER CORPORATION (current position)

Apr. 1977
Dec. 2007
Oct. 2013
Jan. 2014
Apr. 2014
Jun. 2017
Jun. 2023

Jun. 1983
Aug. 2006
Sep. 2007
Jun. 2010
May 2020
Oct. 2021

Member of the Board, Takeei Construction Co., Ltd.
(currently TAKEEI CORPORATION)
President and Representative Director
Representative Director, Monzen Clean Park Co., Ltd.
(current position)
Representative Director, Green Arrows Holdings, Inc.
Chairman of the Board of Directors, TAKEEI CORPORATION(current position)
Representative Director, TAKEEI Foundation for SDGs
Promotion (currently TRE Foundation for SDGs Promotion)
Director, the Company (current position)

Apr. 1983
Mar. 2002
Oct. 2006
Jul. 2007
Apr. 2008
Apr. 2009
Jul. 2010
Apr. 2014
Jul. 2015
Jun. 2016
Jul. 2018
Oct. 2020

Jun. 2021
Oct. 2021
Dec. 2021

TRE HOLDINGS CORPORATION Integrated report 2023

Apr. 1994
Oct. 1996
Jun. 2006
Jun. 2015
Sep. 2019
Oct. 2021

Joined Ministry of Agriculture, Forestry and Fisheries
Counsellor, Cabinet Secretariat, Prime Minister’s Office of Japan
Director, Environment Policy Division, Minister’s Secretariat,
Ministry of Agriculture, Forestry and Fisheries
Director, Policy Planning and Evaluation Division, Minister’s
Secretariat, Ministry of Agriculture, Forestry and Fisheries
Director, Food Security Division, Minister’s Secretariat,
Ministry of Agriculture, Forestry and Fisheries
Policy Planning Division, Minister’s Secretariat, Ministry ofAgriculture, Forestry and Fisheries
Director-General, Forest Policy Planning Department, Forestry
Agency, Ministry of Agriculture, Forestry and Fisheries
Director-General, Kanto Regional Agricultural Administration
Office, Ministry of Agriculture, Forestry and Fisheries
Director-General, Rural Development Bureau, Ministry ofAgriculture, Forestry and Fisheries
Director-General, Industrial Science and Technology Policy andEnvironment Bureau, Ministry of Economy, Trade and Industry
Vice-Minister of Agriculture, Forestry and Fisheries, Ministryof Agriculture, Forestry and Fisheries
President and Representative Director, Next-generation
Industry Research Institute Co., Ltd. (current position)
Specially Appointed Professor, Research Institute for
Agricultural and Life Sciences, Tokyo University of Agriculture(currently Tokyo NODAI Research Institute) (current position)
Outside Director, SBI Holdings (current position)
Outside Director (Audit and Supervisory Committee member)(current position)
Outside Director, Nexyz.Group Corporation(Audit and Supervisory Committee member) (current position)

Joined BLAKEMORE & MITSUKI
Joined Hideyuki Sakai Law Firm
Established Ichigaya International Law Firm
(currently SHINDO & MATSUMURA LAW OFFICE)(current position)
Outside Director, Carlit Holdings Co., Ltd.
Outside Auditor, REVER HOLDINGS CORPORATION(currently REVER CORPORATION)
Outside Director (Audit and Supervisory Committee member)(current position)

Tomoko Aramaki

Number of shares of the Company held:
0
Attendance at Board of Directors’ meetings:
14/14

Jan. 2021

53

Joined The Kyowa Bank, Ltd. (currently Resona Bank, Limited)
Retired from Resona Bank, Limited
Retired from The Dai-Ichi Life Insurance Company, Limited
Joined TAKEEI CORPORATION
General Manager of Audit Department
Corporate Auditor (current position)
Director (Audit and Supervisory Committee member)(current position)

Number of shares of the Company held:
0
Attendance at Board of Directors’ meetings:
14/14

Hiroyuki Suematsu

Number of shares of the Company held:
2,046,126
Attendance at Board of Directors’ meetings:
14/14

Mar. 1977

Fumie Omura

Number of shares of the Company held:
4,072
Attendance at Board of Directors’ meetings:- (newly appointed in June 2023)

Number of shares of the Company held:
16,716
Attendance at Board of Directors’ meetings:
14/14

Number of shares of the Company held:
800,000
Attendance at Board of Directors’ meetings:
14/14

Apr. 1968

Akira Kanai

Number of shares of the Company held:
0
Attendance at Board of Directors’ meetings:- (newly appointed in June 2023)

Oct. 1991
Mar. 1995
Jul. 1999
May 2002
Feb. 2006
Apr. 2006
Jun. 2008
Jun. 2015
Dec. 2015
Jun. 2018
Mar. 2022
Jan. 2023

Jun. 2023

Joined Century Audit Corporation
Registered as a certified Public Accountant
Seconded to Regional Financial Cooperation Division, Trade
Policy Bureau, Ministry of International Trade and Industry
Joined IBM Japan, Ltd.
Director, Aramaki CPA Office (current position)
Registered as a certified Tax Accountant
Audit & Supervisory Board Member, PARIS MIKI HOLDINGS Inc.
Director, in charge of Investor Relations
Corporate Auditor, SACOS CORPORATION (current position)
Outside Auditor, EXEO Group, Inc. (current position)
Outside Director, FUJI SOFT CORPORATION (current position)
Information and Communications Council member, Ministry ofInternal Affairs and Communications (current position)
Telecommunications Business Policy Committee member,Information and Communications Council (current position)
Postal Services Policy Committee member, Information andCommunications Council (current position)
Outside Director, EXEO Group, Inc. (current position)
Outside Director (Audit and Supervisory Committee member)(current position)

TRE HOLDINGS CORPORATION Integrated report 2023

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Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Environment

Working to reduce the environmental impact of our businessactivities in order to conserve the global environment

Installing solar panels at intermediate
processing facilities and other sites

Environmental Certifications

Basic approach
As stated in the TRE Group's principles, “We are committed tothe conservation of the global environment,” and are striving
to contribute to the creation of an efficient recycling society
and a carbon-neutral society through our business activities.
In addition, under our Basic Policy on the Environment,
we are working to conserve the global environment andreduce our environmental footprint by reducing our CO2
emissions, among other measures.

Date of Certification(Registration)

Organization Certified
ISO14001
REVER CORPORATION

June 1999

TAKEEI CORPORATION *1

February 2001

Fuji Car Manufacturing Co., Ltd.

March 2001

EQUAL ZERO Inc.

March 2001

Shinshu Takeei Co., Ltd.

December 2001

Hokuriku Environmental Services Co., Ltd. *2

July 2004

Takeei Green Recycling Co., Ltd. *3June 2007

Eco-Action 21
Ikeda Construction Materials Co., Ltd.

Basic Policy on the Environment

August 2007

Takeei Metal Co., Ltd.

TRE HOLDINGS CORPORATION and its affiliated companies ("theTRE Group"), which operate a Waste Treatment & Recycling
Business, a Resource Recycling Business, a Renewable Energy
Business, and other environment-related businesses, arecommitted to proactively working toward conservation of the
global environment and reduction of environmental impact inorder to realize a future in which both companies and society canachieve sustainable growth.

April 2017

Gypro Co., Ltd.

October 2017

Tohoku Koueki Recycling Technology Co., Ltd.

February 2022

*1 Divisions in the industrial waste treatment business responsible forsales, collection and transportation, final disposal, administrative tasks,
and intermediate processing.
*2 Headquarters and Hiraguri Plant.
*3 Fujiyoshida Plant, Fujigane Plant.

We will strive to contribute to the creation of an efficient recycling
society through our business activities by further enhancing the
TRE Group's technologies and combining the strengths of ourrespective Group companies to provide environmentally friendly
products and services.

2. Striving to create a carbon-neutral society
In addition to ensuring thorough energy conservation throughout
our business activities, we aim to reduce greenhouse gas
emissions and contribute to climate change mitigation by creating
renewable energy sources using natural and biomass resources inorder to help create a carbon-neutral society.

3. Promoting environmental initiatives that are rooted
in local communities and society
As a comprehensive environmental management company, we arededicated not only to preventing environmental pollution in ourbusiness activities, but also to proactively protecting andpreserving the natural environment in order to coexist inharmony with nature and the ecosystems of the regions in which
we operate.

4. Enhancing framework for advancing
environmental initiatives
In addition to complying with all environment-related laws andregulations, our officers and employees will practice Sustainability
Management by pursuing continuous improvement based on
careful consideration of environmental issues.
As of October 19,2021

Toward a carbon-neutral society
The TRE Group has positioned the creation of a carbonneutral society as one of its material issues for the realizationof a sustainable society, and has set incremental targets(KPIs) linked to each material issue.
By 2050, we aim to achieve net zero CO2 emissions
across our entire value chain. As milestones toward this goal,
we have set targets of net zero CO2 emissions (Scope 2) frompurchased electricity by 2026, and a reduction in CO2emissions (Scope 1+2) of 46% or more (base year: 2013) by2030. As concrete measures to achieve these targets, we are
actively utilizing renewable energy sources andimplementing various initiatives to conserve energy andreduce CO2 emissions.

(1) Achieve net zero CO2 emissions from purchased electricity (Scope 2) by 2026
(2) Reduce net CO2 emissions (Scope 1+2) by 46% or more by 2030 comparedto FY2013(3) Achieve net zero CO2 emissions (Scope 1+2+3) by 2050
Reduce Scope 2
emissions to net zeroOperation of environmental
management system
The TRE Group has obtained ISO 14001 certification, theinternational standard for environmental management, as wellas Eco-Action 21 certification, an environmental management
system established by Japan's Ministry of the Environment.

TRE HOLDINGS CORPORATION Integrated report 2023

Electricity

53,867MWh

Diesel oil

8,814kl

Gasoline

334kl

LNG

1,079,000 m

LPG

52,000 m

Type-A heavy oil

375kl

Scope

3

Trends in power generationand consumption *1

Scope

2

3

Scope

1

Scope

1

1

2026

609,633

600,000

Woody biomass
power generation

Other
environmental
businesses

Environmental analysis

t-CO2

Resources received
and recycled *3(t-CO2/t)
0.040(1,000t)
1,600

0.038

0.038

Resources received

1,400
1,200

0.030

Scope 3354,778t-CO2
87.3%

Manufacture and saleof environmental
equipment

CO2 emissions per
resource received(per unit) *2

569,859

504,966

406,282

Renewableenergy business

0.040

23,128t-CO2
5.7%
Total CO2
emissions

Waste generation andrecycling efficiency *4

Resources recycled

Waste generated(1,000t)150

92.8

Recycling eﬃciency

92.4

1,386
1,358
1,331
1,265
1,244
1,225

92.0

(%)
100

110
100

1,000

96

101

2030

2050

50

800

300,000
600
200,000
100,000

Reduce Scope
1+2+3 emissions
to net zero

3

Scope

Power consumed(MWh)700,000

28,377t-CO2
7.0%

Final disposal(landfill)

0.020

Scope
Scope

transportation

2,814kg

Acetylene

Scope 2
(market-based)

Scope 1

Resource
Intermediate
recycling business treatment (Recycling)

3

60kl

Breakdown of CO2 emissions

Waste treatment & Sales
recycling business Collection and3

Kerosene

500,000

Business activities

400,000

Reduce Scope 1+2 emissions
by 46% or more in
real terms compared to FY2013

2013

55

Energy input and CO2 emissions in the TRE Group’s business activities

Power generated

The TRE Group's carbon neutrality targets (KPIs)

The TRE Group has introduced a CO2 emissions
visualization system to conduct timely monitoring of CO2
emissions on a monthly basis at each site. This enables us
to manage our targets, identify any issues, and effectively
implement the necessary measures to achieve carbon
neutrality in our operations.
In addition, amid the rapid momentum toward carbon
neutrality, manufacturers and service providers face a major
challenge in identifying the actual GHG emissions generated
during the disposal process. Accordingly, in the future theGroup will work to visualize CO2 emissions generated in thewaste treatment and recycling process and develop systems
that will enable us to provide actual measured emissions data
to our customers.

To promote the use of renewable energy sources forelectricity consumption in order to achieve our carbon
neutrality goals, the TRE Group has decided to install solar
panels on the roofs of TAKEEI CORPORATION's Tokyo
Recycling Center, Kawasaki Recycling Center, Shiohama
Recycling Center, and distribution vehicle depots in an effort
to further energy self-sufficiency.
We estimate that the annual reduction in CO2 emissions
from these four locations will total approximately 721 tons.
This installation will be partially subsidized by the Tokyo
Metropolitan Government's Local Production andConsumption Renewable Energy Enhancement Project.
Going forward, we will continue working to adopt
green power throughout the Group, including installing solar
power generation equipment for in-house consumption atother sites, with the aim of achieving carbon neutrality in our
power consumption.

Energy input into business activities

1. Contributing the creation ofan efficient recycling societyGroup-wide adoption of CO2 emissions
visualization system

54,17155,643200

53,867

0

2021

2022

2020

2021

2022

0

0

0

0

2020

50

400

0.010

2020

2021

2022

2020

2021

2022

*1 The TRE Group generates more renewable energy than the amount of electricity used by each Group company.
*2 CO2 emissions associated with energy use ÷ resources received. Resources received: Volume of valuables and waste received by the Group.
*3 Resources received: Volume of valuables and waste received by the Group. Resources recycled: Volume of resources received that could be used as recycled resources.
*4 Recycling efficiency: Resources recycled ÷ (Resources recycled + Waste generated) × 100. Waste generated: Volume of resources received that could not berecycled and was disposed of.

TRE HOLDINGS CORPORATION Integrated report 2023

56

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

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

We regard climate change as an important management issue
and understand and analyze the medium- to long-term risks
and opportunities
Basic approach
TRE HOLDINGS is fully aware of the impact of climate change,
including associated environmental destruction and the needfor countermeasures. Accordingly, we have set the realization of“an efficient recycling society” and “a carbon-neutral society” asmaterial issues. In fiscal 2022, we expressed our support for the
Task Force on Climate-Related Financial Disclosures (TCFD).
Although society and markets are increasingly acting to achievecarbon neutrality, abnormal weather events and flood damage
are already growing more severe. We will continue our efforts to
help resolve societal challenges related to climate change via
our business, including contributing to disaster recovery efforts.

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

Risk management
In fiscal 2022, the CSR and Sustainability Committee discussed
the impact of the risks and opportunities of climate change on
the Group’s business and how to manage those risks going
forward, and the results are disclosed in this integrated report.

Strategy
The Group seeks to understand the risks and opportunities posed
to business by the migration risks and physical risks of climatechange, and to reflect that understanding in business strategies
and in the planning of climate change countermeasures. The
results of the climate change risk impact analysis that we
conducted in fiscal 2022 indicate that for the Group, which isengaged in waste treatment, recycling and renewable energy
businesses, the risks posed by climate change to business
continuity are significantly outweighed by the business
opportunities, which are linked to future growth opportunities.

57

TRE HOLDINGS CORPORATION Integrated report 2023

In FY2023, in accordance with TCFD recommendations,
we began conducting scenario analysis to identify climatechange-related risks and opportunities. During this scenario
analysis, we defined a 1.5°C scenario and a 4°C scenario
based on scientific evidence from the International Energy
Agency (IEA) and other sources, and estimated the following
three items to evaluate the magnitude of climate-related risks
and opportunities that may affect our business in 2030.
Migration risks
1. Financial impact of the introduction of carbon pricing
We estimated the impact of the introduction of a carbon tax on
CO2 emissions, based on the assumption that CO2 emissions
in 2030 will remain at the same level as in 2013.
2. Financial impact of changes in electricity prices
We estimated the impact of reducing our total electricity
consumption in 2030 compared to 2021 levels throughenergy saving initiatives and the introduction of solar power
generation systems for on-site consumption, as well as theeffect of adopting 100% renewable energy for the remainderof our electricity consumption.
Physical risks
3. Impact of business suspension due to flooding and storm
surge damage
We used hazard maps to determine information such as thedepth of inundation due to storm surges and flooding, as wellas river class based on the address of each of our businesssites, and estimated the amount of damage due to businesssuspension at each location based on the number of days offull or partial business suspension in accordance with thedepth of inundation, then multiplied this by the annual
probability that levels will be exceeded in accordance with therelevant river class to estimate the average annual amount ofdamage due to business suspension.
The results of the assessment are summarized in table formon the following page.
Under the 1.5°C scenario, we anticipate a significant cost
increase due to carbon taxes. At the same time, our qualitative
assessment also indicates an increase in business opportunities.
With regard to physical risks, we also anticipate anincrease in such risks due to climate change. In light of thefact that the Group’s businesses contribute to conserving the
global environment, including climate change
countermeasures, we have established the creation of an
efficient recycling, carbon-neutral society as material issues
to address, and we will focus on reducing the risks of climatechange while seizing business opportunities.

Scenario Analysis on TRE HOLDINGS’ business (risks and opportunities)
Broad
category

Intermediate
category

Sub category

Risks/
Opportunities

Risks

Impact on the TRE Group• Increased costs due to burden of newtaxes (carbon taxes) if we do notconserve energy at our plants/offices
and in our logistics

Stricter• Expansion in the steel recycling
regulations
business due to a global increase insuch as carbon
demand for electric furnace steel
taxes and• A rise in the needs of customers andgreenhousesocial demands for lower carbon
gas emissions Opportunities throughout the supply chain, contributing
quotasto reduced Scope 3 CO2 from customers
as our plants/offices use lower-carbon
energy, leading to increased
differentiation and competitiveness• Increased demand for renewable energy
Policies andregulations• Increased capital investment costs
and external (secondary) processing
Risks
Stricter
Migration
costs in order to comply with laws
environmentalrisks
and regulations
laws and• Rapid increase in demand for recycled
regulations
Opportunities resources and recycling from local
governments and various manufacturers

Stricterinformation
disclosure
obligations

MarketAcute

Physicalrisks
Chronic

1.5°C

Major

Rise in averagetemperature,
frequent
floods, andstorm surges

Minor

-

-

Major

-

-

Minor
Short- tolong-term

-

-

Major

Risks

• Decline in the Group’s credibility if it
does not comply appropriately withrequests for disclosure• Increased costs due to an increase inindirect operations

-

-

Minor

Opportunities• Clear display of superiority in the industry
through information disclosure

-

-

Minor

Risks

• Stoppage of operations due to damage toplants/offices or disruption of supply chain.

-

Minor
-

Medium

-

Major

-

-

Minor

Risks

• Deterioration of the working
environment and reduced laborproductivity due to heat stress

-

-

Major

Risks

• Storm surge damage to offices andplants located in coastal areas

MediumMajor

Indicators and targets
From fiscal 2023, we have set targets for CO2 emission
reductions among our KPIs.
(1) Achieve net zero CO2 emissions (Scope 2) by 2026
(2) Reduce net CO2 emissions (Scope 1+2) by 46% or more by2030 compared to FY2013

Short- tolong-term

Short- to
mid-term• Increased disaster-related waste
Opportunities
treatment following a natural
disaster such as a major typhoon• Increased opportunities for worn out
infrastructure repair work and waste
treatment businesses as a result of
disaster prevention, disastermitigation, and initiatives for building
Opportunities
national infrastructure resilience• Increased opportunities for waste
treatment businesses accompanying
the movement of workplaces awayfrom regions expected to face disasters

Time ofimpactMid/
Long-term• Increased costs as a result of a sharp
rise in energy costs and the prices of Medium
Risks
Sharp
materials and raw materials
increases inresource prices• Greater demand for reclaimed andOpportunities
recycled goods
Intensificationand frequent
occurrence of
naturaldisasters

Assessment
4°C
Qualitative

Short- tolong-termMid/Long-term
-

-

Minor

(3) Achieve net zero CO2 emissions (Scope 1+2+3) by 2050
We also calculate CO2 emissions as an assessment metric forevaluating climate change-related risks and opportunities.
In particular, we plan to further refine the calculation of
our Scope 3 CO2 emissions in future.

TRE HOLDINGS CORPORATION Integrated report 2023

58

Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Creating pleasant and fulfilling working environments

Promoting diversity and inclusion to allow each and every
employee to achieve their full potential
Basic approach
The TRE Group believes that human resources are thefoundation for sustainable business continuity and considers
the creation of pleasant and fulfilling work environments apriority task. Our employees are the driving force behind all of
our corporate activities. The TRE Group clearly declares its
commitment to prohibiting gender discrimination and childlabor in its Code of Conduct, and is striving to promote
diversity and inclusion to provide all employees an equal
opportunity to utilize their unique talents. Additionally, in order toenhance our corporate value while adapting to changes in theexternal environment, it is essential that we work to attract andretain personnel with diverse values and provide them with
opportunities to foster their growth. By creating a work
environment where a diverse workforce can exhibit their abilities
to the fullest and work with enthusiasm and peace of mind, we
aim to build an organization where both the Group and its
employees can continue to grow sustainably.

Initiatives to enhance ourorganizational strength

new junior employees and providing practical guidance andadvice on workplace life over the course of their first year.
This also helps the young employees serving as instructors to
improve their communication skills and practical leadershipabilities. In addition TAKEEI CORPORATION's Kawasaki
Recycling Center and other facilities have created multilingual
educational materials and notices in their workplaces, which
incorporate a variety of illustrations and photographs, inorder to ensure safe working conditions and increase
retention of the foreign workers employed by the company.

Rank-based training and career training
We provide a range of rank-based training programs according
to age and responsibilities, as well as career training. These
training sessions incorporate group work and aim to expose
employees to a diverse range of values and experiences. The
training programs for department managers and career
training for employees in their 30s held in fiscal 2022 wereconducted jointly with the two recently merged companies
TAKEEI CORPORATION and REVER CORPORATION, providing
an opportunity for employee interaction.

An Elder System instructor mentoring a new employee

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TRE HOLDINGS CORPORATION Integrated report 2023

Expanding efforts to promote women’s
career development
The Group does not discriminate based on gender, and we havefemale employees succeeding in a variety of areas including
factory work, sales, planning and management. In addition, inview of changing career preferences and working environments,
we are working to make a variety of career paths available to ouremployees, prevent the loss of talent through resignation, help
recruit of talented personnel locally, and promote women's careerdevelopment by creating an environment that allows women tocontinue working after childbirth and while raising children.
Programs in this area include the Limited Area Career-track
System that makes it possible for employees to advance theircareer without relocating, and the introduction of the Job Group
Change System (at TAKEEI CORPORATION) that allows flexibility for
employees wishing to change job groups in line with their career
aspirations. At present the ratio of female managers in the Group
is 5.4%, but have set a target of doubling the number of women in
managerial positions, and are actively working to improve thebusiness and work environment and promote employees tomanagement positions based on their abilities, regardless of gender.

Supporting self-directed career development
To respect the wishes of the individual when it comes topersonnel placement, the Group provides opportunities for
employees to convey their ideal career plans to theirsupervisors and the human resources department so that, byincreasing mutual understanding between the company andthe 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 andtransfer 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 in departmentsthat need them. Going forward, we will promote initiatives toencourage self-directed career development by expanding
opportunities for career choice within the company, including
expanding the operation of the Internal Recruitment System.

Support for balancing work with childcare andcare-giving

Attracting and retaining talentWith Japan's birthrate declining and its population aging
rapidly, the country’s working population ratio is projected to
decline from approximately 63.8% in 2010 to 58.1% in 2030.
Accordingly, we are stepping up our efforts to recruit young
talent. The ability to secure a stable source of talent is also apressing issue for the TRE Group. As part of our recruiting
efforts, we are working to share our hiring know-how acrossthe Group in order to enhance new graduate hiring at ourGroup companies, as well as broadening our recruiting scope,such as hiring mid-career talent.
One initiative TAKEEI CORPORATION implements as partof its talent retention efforts is the “Elder System,” in whichyoung employees serve as trainers tasked with supporting

working hours available so that employees can focus on caring
for their families without worry. Going a step further, the REVER
Group has introduced an Accumulated Paid Leave System for
employees with family members who need care, allowing
them to accumulate paid leave that would otherwise expire.
TAKEEI CORPORATION also has a Comeback Systemthat provides recruitment information to former employees
who left because of childcare, care-giving, a spouse’s transfer
or another reason but wish to rejoin the company. We are also
working to enhance systems that make it possible forindividual employees to adopt their preferred working styles
depending on their circumstances.

Promoting diverse work styles andsupporting career development

The Group has introduced a Reduced Working Hours for Childcare
System to support employees caring for children. It allows themto choose to work six or seven hours in a day until their children
graduate from elementary school. To support care-giving, wehave made care-giving leave, care-giving absences and reduced

Non-Financial Highlight(As of March 31, 2023)

Breakdown of employees(persons)

Number of
employees

MaleFemaleWaste treatment &recycling businessResource recycling
business

Renewable energy
business

Other

All
companies(shared)*

2,169

1,748

421

951

702

167

297

52

Employees participate in group work

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

Training programs tailored to each company's
business and unique characteristics

Inclusion initiatives

The TRE Group is composed of many different operatingcompanies that are working together to realize an efficient
recycling society, and we conduct training programs tailoredto the business operations and specific characteristics ofeach company. REVER CORPORATION runs the REVER
Academy Training Program to give employees anunderstanding of the various businesses and tasks in thecompany so that they can learn and master skills related tothe jobs they are involved in. Additionally, the TRE Group is
utilizing the advantages of e-learning, which enables
employees to access training regardless of time or location, toconduct Group-wide compliance training, which is particularly
important for all employees.

Ratio of female workers
by job classification

Employee assignment transfers via
Internal Recruitment System (persons)Training and education expenses(million yen)

Officer775.9Manager
General employee

Childcare leave
Female
16

14.2
5.4
21.6
(persons)

Leave taken before andafter childbirthMale0

Employment status
(%)

Total
16

Average age (years)

45.7

Average length of employment(years)11.1

New graduates hired (persons)

33 (Male 19, Female 14)

New female graduates hired (%)

42.4

Number of employees taking childcare leave/
childcare leave rate

Mid-career hires (persons)135 (Male 94, Female 41)

Male
8 (44.4%)

Persons with disabilities
employed (persons)19

Female22(100%)

Health and safety (frequency and severity)
TRE Group
Average for the general and industrial waste treatment industry*
All industries

Total
30(75%)
Frequency rate

Severity rate

2.77
6.52
2.06

1.48
0.51
0.09

* Source: Health and Safety Committee, Japan Federation of Industrial Waste Management and Recycling Associations, “Occurrence of Occupational Accidents in the
Industrial Waste Treatment Industry” (June 2023).

TRE HOLDINGS CORPORATION Integrated report 2023

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Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Occupational health and safty

Living and thriving together with the local community

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

Valuing communication with local residents and society, andactively participating in social contribution activities as amember of the community

Basic approach to workplace health and safety
The TRE Group considers the health and safety of its
employees to be a fundamental element of its business
continuity and is committed to creating workplaces where all
employees can work in a healthy, safe, and secureenvironment. We are fully committed to our corporate stancethat safety is our top priority, and strive to ensure safety is
maintained in all of our business activities.

Promoting workplace health andsafety management
Each of the Group's operating companies has establishedtheir own safety management systems. Under the leadershipof top management, health and safety managers and thesafety management division, who are responsible forpractical safety management at each work site, work together
to improve the effectiveness of safety management, andidentify and address any problems or issues. In addition, theGroup has a framework for sharing important information
regarding incidents such as serious accidents or disasters, inorder to promote safety enhancement activities across theentire Group.

Fire prevention measures
The Group takes the following hard (engineering) and soft
(management) measures to prevent fires, mainly at REVER
CORPORATION’s 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 are absent, the fire
detectors are linked to a security company to minimize therisk of a fire outbreak. The mist sprayers spray a fine mist
inside the shredders and create a moist environment thatprevents fires and explosions in the machines. Portable
thermo-sensors allow us to sense a wide range oftemperature increases from the color displayed on thescreen, preventing ignition fires. In addition to these steps, we
also take management measures to prevent fires such as
spreading information about preventing contamination by
hazardous materials, strengthening inspections, sprinklingwater on base metals and dust yards, and strengthening thesystem through initial firefighting drills.

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TRE HOLDINGS CORPORATION Integrated report 2023

Establishing a robust safety
management system
Updating accident reporting systems toeliminate recurrence
In April 2023, REVER CORPORATION updated its accident
reporting system. Under the new system, more detailed
information on the circumstances in which the accident
occurred are recorded, and data on causes and types ofaccidents are instantly graphed to help prevent therecurrence of similar accidents. Regarding safety education,in addition to in-house training at regularly-held health andsafety meetings, we also emphasize external training incooperation with manufacturers of safety equipment andheavy machinery. By focusing on both internal and externalsafety training, we are striving to raise the level of safety
awareness among our employees in addition to imparting
essential safety knowledge. By fostering a safety-first culture
through such initiatives, we are working to ensure the safetyof our employees at all work sites, which in turn helps us toearn the trust and confidence of our stakeholders.

Commendation as an excellent safe driving workplace
Shinshu Takeei Co., Ltd. was commended with a Gold Awardby the Japan Safe Driving Center in its second round of
excellent safe driving workplace awards for 2022.
This award system, which utilizes driving record
certificates, recognizes business establishments for their efforts
to drive safely, prevent traffic accidents, and have recorded noaccidents or violations. Shinshu Takeei Co., Ltd. has obtained
driving record certificates for its employees for some time inorder to raise awareness of safe driving practices. Throughsuch activities, we will continue working to ensure safe driving
and prevent traffic accidents, not only during work hours, but also
in day-to-day life, with a goal of zero accidents and violations.

Basic Approach to Social Contribution
The TRE Group regards its social contribution activities as key
initiatives that contribute to the sustainable growth of bothsociety and its business, in order to continue coexisting withsociety as a member of the local community. As a company
that aims to solve societal challenges through ourenvironmental businesses, we also believe that
communicating the Group's initiatives to local residents andother stakeholders an important part of our mission, and arefocusing on initiatives related to environmental education.
Furthermore, we believe that active participation in volunteer
and charitable programs that address local challenges andneeds is essential in order to establish a relationship of trustwith the local community and to grow together. We contributeto the development of local communities and the environment
through our activities, as well as provide donations and otherforms of societal support, taking into account the social andpublic benefit of each program.
The CSR and Sustainability Promotion Department
leads social contribution initiatives in collaboration with the
TRE Foundation for SDGs Promotion, Group companies, andrelated divisions.

Initiatives by the TRE Foundationfor SDGs Promotion
In May 2020, we established the Takeei Foundation for SDGs
Promotion with the aim of contributing to the achievement of
the SDGs in order to protect our precious earth with its
bountiful land, forests, and oceans (Only One Earth®), andpass it on to the next generation. In June 2022, we changed
the foundation’s name to TRE Foundation for SDGs Promotion.
We will continue to actively pursue social contribution
activities related to the SDGs as well as environmental
preservation programs in and around the municipalities andlocal communities in which we operate.

Social contribution activity-related
expenditure and number of participants
The TRE Group provides assistance to regions impacted bynatural disasters, including via donations. In fiscal 2022, theGroup's expenditures related to social contribution activities
totaled 11 million yen. As a comprehensive environmental
management company, we also believe it is important for our
employees to be involved in environmental conservation
initiatives. The TRE Foundation for SDGs Promotion creates
opportunities for employees to participate in such activities
by planning and implementing tree-planting and cleanup
events. In fiscal 2022, a total of 978 employees of the Group(equivalent to approximately 45% of total employees)
participated in activities organized by the Foundation. In
addition to the Foundation's initiatives, our respective Group
companies participate actively in environmental conservation
initiatives conducted in the local communities near ourbusiness sites.

Employees participate in a tree-planting program

Number of participants in social contribution
activities organized by the Foundation

978 employees in total
Expenditure on social contribution activities

11 million yen

Main initiatives to date

The award presentation ceremony

Supporting society via donations- Humanitarian aid to Ukraine: Donated 2 million yen to the Japanese Red Cross Society- Turkey-Syria earthquake relief: Donated 5 million yen to the Japanese Red Cross Society.
etc.

Cleanup initiatives- Conducted cleanup exercises near business sites in spring and autumn in support of Zero
Marine Litter Week promoted by the Ministry of the Environment and the Nippon Foundation. A
total of 668 employees participated.
- Conducted cleanup exercises four times during the year in support of the Minato CleanupCampaign 2022 organized by Tokyo’s Minato City. A total of 82 employees participated.

Environmental education (site tours)- Number of site tours at TRE Group facilities: 1,359 (4,138 participants)

TRE HOLDINGS CORPORATION Integrated report 2023

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Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Living and thriving together with the local community

SDGs contribution activities

power generation, and replanted with new seedlings—thus
ensuring the healthy growth and management of the forest.

Initiatives by the TRE Foundation for SDGs Promotion
The TRE Foundation for SDGs Promotion (hereafter “theFoundation”) supported and participated in community-level
environmental conservation initiatives throughout the year,
including the Zero Marine Litter Week campaign promoted by
the Ministry of the Environment and the Nippon Foundation,
as well as the Minato Cleanup Campaign 2022 organized by
Minato City, Tokyo. Employees of both TAKEEI CORPORATION
and REVER CORPORATION participated in cleanup exercises
near each others’ respective headquarters, deepening
exchanges among between the two companies.

Working together with local communities
Certification as an Ichihara City SDGs
Declaration Company
The TRE Group’s Green Power Ichihara Co., Ltd. and REVER
CORPORATION’s Ichihara Plant were certified as “Ichihara City
SDGs Declaration Companies” on December 20, 2022. Thiscertification is awarded under the Ichihara City SDGs Declaration
System operated by Ichihara City, Chiba Prefecture, whichaims to expand awareness of the SDGs and address local
challenges by visualizing the efforts of certified companies andorganizations in order to realize a city that symbolizes the SDGs.
Using this certification as encouragement to pushforward with initiatives, the TRE Group will continue working
together with the local community to help create an efficient
recycling, carbon-neutral society.

who has achieved remarkable success from a young age andis anticipated to reach even greater heights in the future,
while also raising the profile of the Group.

Promoting environmental education for
future generations
Tour of REVER CORPORATION's Ichihara Plant
In August 2022, REVER CORPORATION's Ichihara Plant held atour of its facilities. Participants included four children, theirparents, and one teacher, who watched the disassembly of
scrapped home appliances and the shredding process for
end-of-life vehicles, as well as participated in a scientificexperiment to learn how the sorting process works. The event
proved a hit with participants as it not only provided a firsthandview of the waste disposal process, but also provided a deeper
insight into the mechanisms involved. We will continue to raiseawareness about recycling through such initiatives.

encourage children, who will be next generation of leaders, todevelop an interest in and appreciation for the environment.

Support for disaster recovery
Disaster waste agreement with Yotsukaido CityIn 1992, TAKEEI CORPORATION opened the Yotsukaido Recycling
Center, an intermediate processing facility in Yotsukaido City,
Chiba. The center remains in operation today and iscommissioned to process general non-burnable waste generated
in the city. Due in part to this long-term relationship, we concluded
an “Agreement for Cooperation in Disaster Response Measures”
with Yotsukaido City, with a signing ceremony held in
February 2023 at Yotsukaido City Hall. The agreement statesthat TAKEEI will promptly dispatch necessary personnel,
equipment, and materials to the city and cooperate in swift
recovery efforts when requested in the event of a disastersuch as an earthquake, wind damage, or flooding. The TREGroup has handled disaster waste throughout Japan, such as
areas in which our Group companies are located, including
involvement in earthquake recovery projects in the Tohoku
region. We will strive to help disaster-affected areas achieve a
rapid recovery and enable local communities to return tonormal life as quickly as possible by leveraging our wealth ofaccumulated expertise in industrial waste treatment toaddress disaster waste treatment needs through ourexperienced personnel, facilities, and equipment.

Employees performed a cleanup exercise near the REVER CORPORATION headquarters

Afforestation initiatives in collaboration withwelfare-related companies
In May 2023, the first lacquer tree planting festival was held in
Hirakawa City, Aomori, with support from the TRE Group's Tsugaru
Biomass Power Generation Co., Ltd., Tsugaru Biomass ChipCo., Ltd., and Kirin Corporation, which operates a Type B support
for continuous employment facility in Hirakawa City. Lacquer tree
seedlings were planted during the festival. This joint “forest
welfare” project between the forestry and welfare industries
aims to solve challenges in the both industries and contributeto the achievement of the SDGs in the local community byplanting approximately 350 lacquer trees per year in forests
owned by Tsugaru Biomass Power Generation Co., Ltd. After
extracting lacquer, the trees will be used as fuel for biomass

Tree-planting initiative with Kirin Corporation

63

TRE HOLDINGS CORPORATION Integrated report 2023

An experiment to understand how the sorting process works
Ichihara City SDGs Declaration Company certificate

Sponsorship of Ichihara City junior golfer
Yuma Nemoto
In December 2022, the Group concluded a sponsorshipagreement with junior golfer Yuma Nemoto. Yuma's hometownof Ichihara City, Chiba, is the site of the “TRE Integrated
Environmental Business (provisional name)” concept announced
by TRE HOLDINGS CORPORATION in September of the same
year, and has also been certified as a Municipal SDGs Model
Project by the Cabinet Office of Japan, demonstrating thecity's commitment to building a society where young people
can realize their dreams. Accordingly, we aim to express our
support for Ichihara City's efforts by sponsoring Mr. Nemoto,The 1st Ichihara City Junior Golf Open press conference at Ichihara City Hall

Hanamaki Biomass Power Generation Co., Ltd. hostsa social studies field trip
In September 2022, 28 fifth grade students from Hanamaki
Municipal Yuguchi Elementary School, located near the power
generation plant operated by Hanamaki Biomass Power
Generation Co., Ltd. visited the facility as part of a social studies
field trip. The children were fascinated to learn that electricity
generated using thinned wood from local forests is supplied totheir school, and that the wood ear mushrooms they eat in theirschool lunches are grown using the residual heat generated
during power generation. Some children even mentioned thatthey would like to work at the power plant in the future.
Through such initiatives, we will continue working toAgreement signing ceremony with Yotsukaido City

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 our accumulated
knowledge and experience to support the recovery of theareas affected in order to contribute to recovery andrestoration as quickly as possible when an emergency occurs.

Students from Yuguchi Elementary School tour the plant

TRE HOLDINGS CORPORATION Integrated report 2023

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Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Financial highlights (consolidated)(Millions of yen)Unit

Net sales

Ordinary profit

Profit attributable to owners of parent

Comprehensive income

Net assets

Total assets

Net assets per share

Earnings per share

Equity ratio

Return on equity

Price-earnings ratio(Millionsof yen)(Millionsof yen)(Millionsof yen)(Millionsof yen)(Millionsof yen)(Millionsof yen)Company
nameFY03/2019

FY03/2020

FY03/2021

REVER HD36,681

28,37536,203

FY03/2022

FY03/2023

TRE HDTRE HD68,234TAKEEI

32,271

37,71342,062

REVER HD

1,645

1,281

4,131
7,547

TAKEEI

1,814

3,025

3,893

REVER HD

1,268

1,217

3,135
4,742

TAKEEI

275

1,765

2,272

REVER HD

1,241

1,245

3,121

TAKEEI

318

1,813

2,438

REVER HD15,474

16,20918,731TAKEEI

26,96028,27034,505

4,833

27,74628,24480,25787,806

REVER HD

903.52946.46

1,093.74(yen)1,131.93

1,186.86

1,196.98

REVER HD

74.07

81.12

183.06

(yen)
11.92

76.65

89.07

REVER HD

55.8

57.4

61.3

TAKEEI

36.7

34.1

37.6

REVER HD

8.5

7.7

17.9

TAKEEI

1.0

6.6

7.5

REVER HD

–

7.96

7.07

TAKEEI

61.5

10.2

14.5

(%)

9.9

(times)90,712

7,509

8.3%

7,600

Waste Treatment & Recycling

25,662

4,210

16.4%

Resource Recycling *1

44,866

3,139

7.0%

5,197

Renewable Energy *2

13,794688

5.0%

	Environmental Engineering
Other
Environmental Consulting

7,374

325

4.4%

5,348

Adjustments

(986)

(852)

–

67,137132,290

Movement in results and plansby segment

1,275.04

101.20

17.9

49.5

8.1

Resource Recycling *4

14.1

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Cash and cash equivalents at end of period(Millionsof yen)(Millionsof yen)(Millionsof yen)(Millionsof yen)

1,369

1,973

5,249

TAKEEI

2,916

5,354

7,401

REVER HD

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

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

REVER HD

(769)

(558)

(3,107)

11,017(2,149)(3,700)TAKEEI

1,243

4,714

5,458

REVER HD

6,936

6,238

8,315
24,014TAKEEI

8,922

11,028Notes:
1. Fiscal year-end REVER HD: June, TAKEEI: March
2. Price-earnings ratio for REVER HD in FY03/2019 is not shown as the company was not publicly listed at the time.

65

TRE HOLDINGS CORPORATION Integrated report 2023

10,282

9,184(6,693)(2,827)

23,678

FY03/2022 (Actual)

FY03/2023 (Actual)

Apr. 2020–
Mar. 2021

Apr. 2021–
Mar. 2022

YoY

Apr. 2022–
Mar. 2023

YoY

Apr. 2023–
Mar. 2024

YoY

73,47090,584+23.3%

90,712+0.1%

95,200

+4.9%

6,727

10,326+53.5%

7,509-27.3%

8,300+10.5%

9.2%

11.4%

–

8.3%

–

8.7%

–

24,73825,146+1.6%

25,662+2.1%

27,757

+8.2%

3,468

5,113

+47.4%

4,210-17.7%

4,346

+3.2%

14.0%

20.3%

–

16.4%

–

15.7%

–

Net sales

31,40846,418+47.8%

44,866-3.3%

45,550

+1.5%

2,660

5,454

+105.0%3,139-42.4%

3,796+20.9%

8.5%

11.7%

–

7.0%

–

8.3%

–

11,457

12,617+10.1%

13,794+9.3%

13,891

+0.7%

325

-305

-193.8%

688

–

771

+12.1%

2.8%

–

–

5.0%

–

5.6%

–

6,828

7,102

+4.0%

7,374

+3.8%

8,710

+18.1%

349

441+26.4%

325-26.3%

483+48.6%

5.1%

6.2%

–

4.4%

–

5.5%

–

Net sales

(962)

(700)

–

(986)

–

(708)

–

Operatingprofit

(76)

(376)

–

(852)

–

(1,096)–

OperatingprofitOperatingprofit margin

OperatingprofitOperatingprofit margin

Net sales
Other
Operating
Environmental Engineering profit
Environmental Consulting
Operatingprofit margin
Adjustments

FY03/2024 (third year of
medium-term plan)

FY03/2021(Actual)*3

OperatingprofitOperatingprofit margin

Net sales
Renewable Energy *5

REVER HDOperatingprofitOperatingprofit margin
Net sales

Waste Treatment &Recycling
48.3

(%)

Consolidated

Consolidated

110.79TAKEEI

Operating profit margin

Net sales
1,218.70

TAKEEI

Operating profit(Millions of yen)
129,524

71,047

Net sales

90,71230,561TAKEEI

Year ended March 31, 2023
Full-year results*1 The Resource Recycling business includes 178 million yen of goodwill amortization related to business integration.
*2 The Renewable Energy business includes goodwill amortization of 378 million yen associated with the acquisition of Green Power Ichihara Co., Ltd.

64,173

REVER HDNet sales and operating profit
by segment*3 A lthough 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.
*4 O perating profit in the Resource Recycling business includes goodwill amortization (90 million yen in FY03/2022, 178 million yen/year from FY03/2023 onwards)
related to business integration.
*5 O perating profit in the Renewable Energy business includes goodwill amortization associated with Green Power Ichihara Co., Ltd. (294 million yen in FY03/2021,
376 million yen in FY03/2022, 378 million yen/year from FY03/2023 onwards).

TRE HOLDINGS CORPORATION Integrated report 2023

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Introduction  |  Part 1 Corporate Profile  |  Part 2 Vision and Strategy  |  Part 3 ESG  |  Corporate Data

Group profile

Company information (as of March 31, 2023)

Share information (as of March 31, 2023)

Company name: TRE HOLDINGS CORPORATION

Stock exchange listing: Tokyo Stock Exchange Prime Market

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 sharesContact information: Tel: +81-3-6327-2620 (main)
Fax: +81-3-3277-3273

TRE Group locations (as of April 1, 2023)
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 near regions where industrial waste generated.

Total authorized shares: 200,000,000 shares
Total shares issued: 5
 2,610,712 shares (including 430,549 shares intreasury stock)

Capital: 10 billion yen

Overseas location: Thailand

Number of shareholders: 11,184

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

Settlement date: March 31
Interim dividend record date: September 30
Year-end dividend from surplus (dividends) record date: March 31

Number of employees:
2,169 employees (on a consolidated basis)

Ordinary general meeting of shareholders: June

Major shareholders (as of March 31, 2023)*

Shareholder distribution (as of March 31, 2023)

Administrator of Shareholders’ Register: M itsubishi UFJ Trust andBanking Corporation

Shares held
(1,000 shares)

Name or title

Percentageof shares
owned (%)

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

9,932

19.04

Custody Bank of Japan, Ltd.
(trust account)

6,192

11.87

Besterra Co., Ltd.

2,570

4.93

Mamoru Mitsumoto

2,046

3.92

Government of Norway (standing
proxy: Citibank, N.A. Tokyo branch)

1,838

3.52

TREHD Employee Shareholding
Association

1,130

2.17

Toru Suzuki

1,050

2.01

Custody Bank of Japan, Ltd.
(trust account E)

  822

1.58

Takao Suzuki

  800

1.53

KIA Fund 136 (standing proxy:
Citibank, N.A. Tokyo branch)

  632

1.21

Other individuals (10,842)

Financial institutions (14)183,256

179,92034.95%

34.32%

share-trading units

share-trading units

Number ofshareholders:

11,184

Total shares held

524,272

share-trading
units
Financial
instrumentbusiness
operators (34)Overseas
corporations (157)

93,603 share-trading units
17.86%

7,197

share-trading units

Other corporations (137)

1.37%

60,296 share-trading units
11.50%* The company owns 430,549 shares as treasury stock, but it is excluded fromthe list of major shareholders above.

Trading volume

Share price(1,000 shares)(yen)

10,0003,000

Waste Treatment & Recycling Business

REVER CORPORATIONTRE GLASS CORPORATION

Sunny Metal Corp.

Green Arrows Tohoku Co., Ltd.

ITSUMO Corp.

Green Power Ichihara Co., Ltd.

 ohoku Koueki Recycling Technology
TCo., Ltd.

HIDAKA SUZUTOKU (Thailand) Co., Ltd.

Takeei Green Recycling Co., Ltd.

Green Arrows Kantou Co., Ltd.
1,000

Apr May
2022

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan Feb
2023

Mar

0

Apr May
2022

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan Feb
2023

Mar

Environmental Engineering
Business / Environmental
Consulting BusinessIkeda Construction Materials Co., Ltd.
Takeei Metal Co., Ltd.

Tsugaru Eneveg Co., Ltd.

EQUAL ZERO Inc.

 aisen Biomass Power Generation
DCo., Ltd.

Fuji Car Manufacturing Co., Ltd.

 anamaki Biomass Power
H
Generation Co., Ltd.

Earth-Appraisal Co., Ltd.

Shinshu Takeei Co., Ltd.
Hokuriku Environmental Services Co., Ltd.

TRE HOLDINGS CORPORATION Integrated report 2023

Takeei Denki Co., Ltd.

 sugaru Biomass Power Generation
TCo., Ltd.

Monzen Clean Park Co., Ltd.

67

 amura Biomass Power Generation
TCo., Ltd.

Renewable Energy Business

Takeei Energy & Park Co., Ltd.

2,000

2,000
0

TAKEEI CORPORATION

Gypro Co., Ltd.

4,000

Hanamaki Biomass Chip Co., Ltd.
TAKEEI Forestry Co., Ltd.

8,000
6,000

Resource Recycling Business

Environmental Conservation Co., Ltd.

TRE HOLDINGS CORPORATION Integrated report 2023

68