Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Environment

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Promotion of decarbonization andexpansion of renewable energy
ACTION

01

Efforts toward carbon neutrality by 2050

Scope 1+2 CO 2 emissions results andtargets (tons)

By reducing greenhouse gases emitted by all of its businesses, the ENVIPRO Group seeks
to become carbon neutral by 2050. Fiscal 2020 CO2 emissions were 9,893 tons, a 24%
reduction compared with fiscal 2018. CO 2 emissions include those derived from electric
power (Scope 2), accounting for about 70% of emissions at the time of joining the RE100
initiative. By working to switch to electric power from renewable sources, we are achieving
continual reductions in emissions. By making all of our business activities carbon neutral,
including the recycling of scrap and wastes, we will contribute to resolving social issues
through decarbonization and to the achievement of a circular economy.

16,00014,075 13,017

12,000

4,000
0

0
2018

2017

2019

2020

2050

Scope 2 tCO 2

02

Achievements toward RE100 targets
Our group is a member of the RE100 global initiative to commit
to 100% renewable energy for electricity used in businessactivities. In December 2020, we moved the year for achieving
RE100 ahead 20 years to 2030. In fiscal 2020, renewableenergy accounted for 35.0% of our electricity consumption. In
April 2021, group member ECONECOL Inc. completed its
switch to renewable energy for electricity used at its plants andoffices, including its head office. With this achievement, about
95% of the electricity consumed by the group as a whole will bederived from renewable energy. We expect to cut CO 2 emissions
from business activities in fiscal 2021 by about 60% (comparedwith fiscal 2018).

ACTION

9,893

8,000

Scope 1 tCO 2

ACTION

11,902

Actual and target power
consumption and renewableenergy ratio
Power consumption

Renewable energy ratio

25.0

100.0 100.0

20.0

80.0

(GWh)

03

(%)

15.0
10.0
5.0
0.0

0.0 2.9
2017

2018

17.8
2019

Power consumption GWh

95%

60.0

35.0

40.0
20.0

2020

2030

0.0

Renewable energy
ratio as of June 2021

RE100 electrical power ratio

New initiatives for a circular economy
Our group took part in a demonstration trial of a waste plastic resource recycling model in Tokyo's Marunouchi area, which began in June 2021.
Post-consumer recycled (PCR) materials such as waste plastic products present difficulty in collection due to their wide variety of types andsmall quantities. In this project, we collaborated with companies in the PCR supply chain to carry out investigations and trials aimed at building
a sequential supply chain system spanning collection and transport of PCR to remanufacturing into consumer products, through streamlining oflogistics and the establishment of traceability. Our group is recycling the collected waste plastics into raw materials.

23

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Environment

Material balance
INPUT
Scrap, waste, raw materials

717,800 tons

Metal scrap

43,200 tons

Fuel

63.7 TJ

Electricity

18.1 GWh

Water

23,000 m 3Nonferrous metals

9,700 tons

Waste plastics

1,100 tons

Plastic raw materials

100 tons

Scrapped cars

9,700 tons

Fuel raw materials

29,100 tons

Wood chip raw materials

2,800 tons

Raw materials for paper

8,100 tons

Scope 1

4,307 tons

0 tonsScope 2

5,587 tons

Amountprocessed

7,200 tons

Wood waste

3,600 tons

Waste paper

8,000 tons

Used clothes

0 tons1,300 tons

Subtotal

229,800 tons

Ferrous scrap

446,800 tons

Raw materials from used clothes
Recycled raw materials

Electronic waste

Black mass

Amountprocessed anddistributed*2

600 tons
96,200 tons

Category 1

Purchased products/services

15,402 tons

Ferrous metals (scrap)

101,100 tons

Category 2

Capital goods

1,564 tons

Category 3

Fuel and energy activities
not included in Scope 1
and Scope 2

1,912 tons

Category 4

Transport/delivery (upstream)

69,577 tons

Category 5

Waste generated from business

3,779 tons

Category 6

Business travel

62 tons

Category 7

Employee commuting

217 tons

Nonferrous metals

5,000 tons

Subtotal

106,100 tons

Ferrous metals (scrap)

420,000 tons

Waste plastics

600 tons

Plastic raw materials

600 tons

Waste paper

8,800 tons

Fuel raw materials

10,400 tons

Raw materials for paper

8,700 tons

Used clothes

2,600 tons

Raw materials from used clothes

2,600 tons

Wood pellets/PKS

10,400 tons

Subtotal

449,500 tons

476,500 tons

Total

651,800 tons

Raw materials for rubber chips

Total input*1*1 Sum of scrap, waste, raw materials (excluding reuse)

Reuse

2,735
11,500 tons
717,800 tons

Finished goods
Recycling
Waste disposal

92,500 tons

Subtotal

7,100 tons

Used cars/trucks

9,900 tons

CO2 emissions (Scope 3)

Nonferrous metals
Distribution
volume *3CO2 emissions (Scope 1+2)

2,600 tons

Other

7,300 tons

Subtotal

Raw materials

Ferrous metals (scrap)

42,700 tons

Nonferrous metals

Reuse

156,100 tons

Energy /water

Mixed waste

Waste batteries

Distribution
volume*1

OUTPUT
Recycled raw materials / finished goods /processing outsourcing 691,800 tons*1

Disposal outsourcing

Scrap/waste

Amountprocessed

24

Used cars/trucks

2,698

Maintenance parts

280 containers

Rubber chip-based products

10,700 tons

Material recycling

1,200 tons

Thermal recycling

15,300 tons

Simple incineration

3,600 tons

Landfilling

9,300 tons

Total

29,300 tons

Total output*1

691,800 tons

*1 Total of recycled raw materials, finished goods, and disposal outsourcing (excluding reuse)*2 Amount of processed resources distributed overseas, etc.
*3 Amount of resources distributed through trading company functions* We will continue to assess emissions in other categories and elaborate on data from thenext fiscal year.

Resource recovery rate*

94.5%* The recycling rate is calculated from Output: (amount processed + amount processedand distributed + recycling) ÷ (amount processed + amount processed and distributed +recycling + waste disposal) x 100

Disposal outsourcing (waste)
Disposal outsourcing (recycling)

651,800 tons

Finished goods

Recycled raw materials
AmountAmountandprocessed processed
distributed

Total output

Distribution volume691,800 tons

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Environment

Information Disclosure in line with TCFD Recommendations
Basic concept

Identifying and addressing risks and opportunities

Under the Paris Agreement, an agreement was reached to limit average global temperature increase to less than 2°C compared topre-industrial levels. Efforts to decarbonize are underway in many countries. Against this background, the Task Force on Climate-related
Financial Disclosure (TCFD), established by the Financial Stability Board (FSB), delivered its final report in June 2017. Following further
developments including the December 2018 publication of "Guidance on Climate-related Financial Disclosures (TCFD Guidance)" byJapan's Ministry of Economy, Trade and Industry, momentum to address the TCFD recommendations is growing.
In May 2019, the ENVIPRO Group announced its endorsement of the TCFD recommendations. In December 2020, the group made thedecision to aim for effectively zero greenhouse gas emissions from our businesses, including the treatment and recycling of scrap andwastes that we handle, by 2050. Resource issues and climate change issues are not isolated issues but rather bear close relation to eachother, and are global-scale societal issues. Endless resource mining and greenhouse gas emissions are detrimental to sustainability.
These issues must be resolved to preserve our shared global resources and natural environment into the future. Our group, which
engages in the Resource Circulation Business at the end of the supply chain, is characterized by the ability to tackle both of these keysocial issues through our business. We believe that these issues truly constitute social responsibilities that our group should address.

Our group used two scenarios, one assuming a temperature rise held back to 2°C at the end of this century and one witha temperature rise of 4°C, to analyze the risks and opportunities brought about by climate change and their impact on ourgroup. We then studied countermeasures.
▼ Scenario analysis
Assumptions

Current
scenario(4°C)
Transitional
scenario(2°C)

Category

To promote policies and measures related to climate change response and other sustainability strategy matters, the group's sustainability
promotion system has a Sustainability Committee that consists of the President and Representative Director, full-time officers, executive
officers, and heads of some related departments. The Committee seeks to promote the Medium-Term Management Plan, "Sustainability
Strategy" that forms our strategy for achieving sustainable development for both the group and society. As an organization that assists
decision-making by the Representative Director, it flexibly and actively discusses and examines the status of strategy promotion andfuture directions, including new business and M&A, from a long-term perspective. Matters discussed are further resolved or discussed
by the Management Committee, a decision-making body for business execution, and are then reported to the Board of Directors. Under
the supervision system of the Board of Directors, we work to maintain governance and promote sustainability strategies.

01. Board of Directors
Supervision

Report02. Management Committee
Supervision

ReportSelection·
Supervision·
Dismissal

Conferencebody
Report01.
Board ofDirectors

Representative Director
Instruction

Report03. Sustainability Committee
Chairperson: President and Representative Director
Members: Full-time directors, executive officers,
department manager of the Environmental
Business Promotion Department,
department managers in charge ofstrategy with management duties
Secretariat: Corporate Planning Department

Instruction

Instruction

Report04. Individual departments/group companies

Report02.
Management
Committee

Rise in the usage rate ofrecycled plastics due toregulations concerning use ofrecycled plastic

Transition▼ Role of the conference body in thesustainability promotion system toaddress climate change

Supervise the progress of
initiatives related toenvironmental issues discussed
and approved by theManagement Committee.
Convene every month.

● Increased demand for ferrous scrap due to an

Risks/Opportunities● Increased ferrous scrap blend ratio in converters

Expansion of existing Recycling Business
Opportunities Installation of large shredders

ferrous scrap● Rise in ferrous scrap prices due to increased demand

Changes in raw materials due to thedevelopment of decarbonization
technologies for steelmaking processes

increase in electric furnaces● Increased demand for high-grade types of● Acceleration of the transition to a circular

economy throughout the plastic life cycle
assessment (LCA)● Expansion of waste plastic materials andchemical recycling● Increase in dismantling work for energy-related

facilities● Increase in demand for nonferrous metals andminor metals in line with electrification(depletion)● Rise in nonferrous metal and minor metal prices

due to increased demand● Development and increased use of alternative
materials to reduce automobile weight andcounter resource depletion

Decide on important mattersrelated to individual, specificinstances of business execution,and make decisions on timely
disclosure. Convene every month.

Discuss organization andoperation of the Committee and03.
other important matters
Sustainability concerning sustainability in order
Committee to promote the Medium-Term
Management Plan. Convene
every month.

Increase in capital investment
related to renewable energy due
to the promotion of its diffusion
Growing proliferation of EVs,
ESS, etc. associated withcarbon reduction anddecarbonization

Role

Changes in the businessenvironment

Changes in society
Increased cost of steelmaking
processes due to theintroduction of carbon taxes

Requirement for reporting ofCO 2 emissions with respect toemissions reduction targets● Assurance of CO 2 emissions traceability (DX)

Increase in heat stress due torise in average temperatures● Regulation of outdoor work during summer

Increase in natural disasters
due to intensification ofabnormal weather● Increase in damage to plants and other

Risks

Development and commercialization ofOpportu- chemical recycling plants
nitiesManufacture of low-carbon raw materials
and fuels (RPF)
Risks

Short to long term
Medium to long termLong term
Medium to long term
Short to medium term

Short to long termLong term
Medium to long term
Short to long term

Creation of new businesses

Medium to long term

Reduction in the use of nonferrous metals
and minor metals in line with technologicaldevelopments

Medium to long term

Opportu- Expansion of the scrap and waste logistics
nities businessMedium to long term

Risks

Risks

business sites● Increase in transportation and construction
delays● Increase in logistics accidents

Affected
PeriodLoss of business opportunities due to delaysin technological developments and business Medium to long term
entry

Opportu- Wide-area expansion of our dismantling
nities business
Risks Curtailment of waste plastic thermal
recycling
Expansion of the Lithium-ion Battery
Recycling Business
Opportu- Expansion of the Collection Business ofnities Gold, Silver & Copper Sediment Sludge(recycling of riddling ash, etc.)

Loss of business entry opportunities due todelays in business development

Opportunities Labor-saving, automation, remote control
Risks

Physics▼ Sustainability promotion system diagram

Details
A scenario in which the average temperature rises by about 4°C compared to pre-industrial levels as a result of failure to introduce
stricter government policies and strengthen regulations, such as regulations to curb GHG emissions, and of failure by businesses
to take effective action in response to climate change. Acute effects include more frequent extreme weather events and more
intense heavy rainfall, while chronic effects include rising sea levels.
The introduction of carbon taxes and policies to regulate emissions are being strengthened to address climate change and curb
GHG emissions. In a world that places demands on companies to respond to climate change, a scenario in which the averagetemperature rise compared to pre-industrial levels is kept below 2°C by improving low-carbon technologies, expanding renewableenergy, and promoting energy conservation.

▼ Risks and opportunities facing our group

Sustainability promotion system

25

Decreases in labor productivity due torestrictions on working hours, etc.

Medium term
Short to long term
Short to long term

Opportunities Strengthening of response to disaster waste

Short to long term

Shutdowns due to damage to plants anddecline in profits due to production declines

Short to long term

Decreases in profits due to lost sales andpurchasing opportunities

Short to long term

Risks

Increases in insurance and repair/restoration
Short to long term
cost.

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

SocialA History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Toward safe and secure workplace environments
ACTION

01

Cross-group “Environmental & Safety Promotion Committee”
ENVIPRO HOLDINGS Inc. makes the creation of safe and secure workplace environments its highest priority, and works to reduce industrial
accident risks and ensure the safety of workers. The Environmental & Safety Promotion Committee develops cross-group activities led by thepresidents of group companies. By sharing examples of companies' initiatives, verifying effects, sharing the progress of activities, and sending
stronger messages to all employees, it is working to encourage all individuals to make changes in their awareness and to foster a corporate
culture that creates safe workplace environments.

ACTION

02

Risk prediction activities with participation by all
We are developing risk prediction activities across the group to report on points that workers findhazardous in work environments and on solutions to these. Every day, workers submit reports,
which are posted on bulletin boards to be seen by all. While monitoring the effectiveness, we are
expanding the risk prediction activities to sales departments, including transport teams, to instill
the activities throughout the group. This is now showing effectiveness in reducing the number ofindustrial accidents and the scale of accidents.
Posting of risk prediction activity charts

ACTION

03

Solidifying the corporate brand of being a safe andclean company
Understanding and analyzing the situation of industrial accidents is vital in improving theeffectiveness of safety activities. In the past, group companies had individually carried out study
meetings by review committees when industrial accidents occurred. As a new initiative to further
speed up sharing within the group, we have begun to invite affiliated companies performing
similar work or experiencing similar accidents to take part in the review committees. As
accidents are frequent in the operation of vehicles, heavy machinery, forklifts, and so on, we areenacting measures that include equipping forklifts with drive recorders. Ultimately, however, it ispeople who operate equipment and systems. Steady activities that change the awareness of
individuals and nurture that awareness as corporate culture form a cornerstone of efforts. We willcontinue making efforts and improvements under the slogan of "solidifying the corporate brandof being a safe and clean company".

Drive recorder-equipped forklift

26

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

To build a platform filled with good quality energy where
employees can work energetically
In achieving the ENVIPRO Group's mission of "Contribute to create a sustainable society," we believe it is important that all employees have the realization that their work is of use to society, and that thisjoy becomes a driving force for the growth of the company. Under the concept of "to build a platform filled with good quality energy," our group is working to create work environments where all employees
can work energetically and make the most of their capabilities. The following is an introduction to the active involvement of a female employee who balances work with home life as a manager, along withthe activities of an in-house project to enhance group cohesiveness.

Creating work environments where women can play active roles
For the sustainable development of the ENVIPRO Group, we must create work environments where all employees can display their full potential and where people of different backgrounds can remain
working together. The group particularly emphasizes the creation of friendly work environments for female employees, and has appointed women to management positions this fiscal year.

Women lead teams in management positions!

Full power, at home and at work!

ENVIPRO HOLDINGS Inc.

ASTOCO Inc. (Ecommit Azumino)

Eriko Takeuchi Manager, General Affairs Section

Chiemi Nomura Facility Manager

Q. Tell us what makes you enthusiastic as a manager.

Q. What made you decide to join the company?

A. duties. Pooling my strength with three other women from the General Affairs Section, I

Since being appointed to my post in July 2021, I've been working hard to carry out my

A. programs in place for cases like this, but the working environment made taking leave

want to make this a team that people can count on. Currently, we're making active useof web-based systems to standardize work and create an environment where we canfollow up on each other.

difficult. Some time after I left, I interviewed with ASTOCO. Right from the interview,
they attentively asked about my mother's long-term care situation. I felt reassured withthis company.

Q. What do you see as friendly to women in the work environment?
We introduced a flextime system a year ago. This is very convenient in letting female

I left a job I had worked at for 15 years to care for my mother. The workplace had

Q. Did you have any concerns about balancing work with home life?
My team has eight people, of which six are women. We rest assured that the president

A. employees with families go to work after their children go to kindergarten. Another great

A. and superiors understand balancing work with family life, and that we can get help if

point of the company is a corporate culture that, with the understanding of superiors
and the help of colleagues, can flexibly adapt to sudden needs to be away from work.

something comes up. Employees express mutual aid and gratitude, and the words"thank you" can always be heard in the company. It's a place where I can feel fun andexcitement on the job every day.

Q. What do you place value on at work?
A.

The concept of thinking of the colleagues we deal with in work as customers within thecompany. We can't do our jobs alone. I keep this in mind especially when I hand off work
to the next process.

Q. What are your future aspirations?
As the company and jobs have gone through major changes, I myself was able to grow

A. by experiencing a number of jobs. Also, I see it as my responsibility to create
opportunities for young employees to grow. I want to bring in others, concentrate myenergy on positive things in the future, and grow together with the company!

Corporate Data

SocialTOPIC
Formation of the Company Song
Project TeamThe COVID-19 pandemic has restricted physicalcommunication within the group. In response, we
decided to participate in the NIKKEI National Company
Song Contest to boost solidarity within the company, andput together the Company Song Project Team. By
creating a music video of the company song that plays
every morning in offices and plants, we sought torevitalize communication throughout the group.

"Love All Over the World" is the title
We conducted a questionnaire survey of all employees
and held discussions on the ENVIPRO Group's
uniqueness and appeal, and what employees want toconvey. The concept behind the production is to deliver
energy to employees' family members, local residents,and everyone seeing the video, through the appearance
and the smiles of employees who are serious about theenvironment and who remain committed to reducing
wastefulness. The music video expresses an image of"love" being set on heart-shaped balloons and delivered
to the world, to connect and spread.

Q. At what times do you feel your job is rewarding?
Being entrusted with important work and expectations to deliver encourages me to do

A. my best. Recently, I was happy to see the company adopt business planning materials
that I created. I'm always able to put my experience with long-term family care andchildcare to use in work. My hard work as a mother proves to be a great power on thejob, too. I'll do my best to contribute to the company's growth, with a feeling of gratitude
that keeps me going day by day!

27

Video now playing on YouTube
Music video: https://youtu.be/A3eJwIF03zk
Making of: https://youtu.be/O5WirnE700k

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Resource Circulation
Business

Action Plan

Governance

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Corporate governance
Basic approach to corporate governance
The ENVIPRO Group recognizes that instilling our corporate philosophy throughout the organization is the most important aspect of governance, and thatthe strengthening of governance that brings discipline to organizations to sustain growth is a key issue in management. Responding to this issue, in
addition to soundness, transparency, and efficiency of management we will always maintain awareness of corporate ethics and legal compliance in our
corporate activities, and will work to strengthen and enhance our corporate governance.
▼ History of corporate governance2010●

Established current ENVIPRO HOLDINGS Inc.

2011

●

Increased number of external directors from two to three

2013

●

Listed on the Second Section of the Tokyo Stock Exchange

2015

●

Revised the Internal Control Basic Policy

2016

●

Established the Appointment and Remuneration Committee

2017

●

Established the Audit and Supervisory Committee

2018

●

Listed on the First Section of the Tokyo Stock Exchange

2019

●

Performed early delivery of convocation notices (over three weeks in advance)

2021

●

Changed the Sustainability Committee to a key meeting body for promotion of the Medium-Term Management Plan●

Introduced executive officer system●●

Established Internal Control Committee

Increased the number of external directors from three to six●

Established the Sustainability Committee▼ Corporate governance structure diagram
General Meeting of Shareholders
Appointment/dismissal

Appointment/dismissal
Audit/supervision

Audit and Supervisory Committee

Board of Directors

Supervision

ReportRepresentative Director
ReportInstruction

ReportDepartments / group companies

ReportSustainability Committee

Instruction

Internal Audit
OfficeInternal audit

Instruction

Instruction

Consultation

Environmental & Safety
Promotion Committee● IT Promotion Committee● Human Resources andLabor Reform Committee● Operations Reform
Committee

ReportConsultation

Management Committee

Internal Control
Committee●

ReportReportAppointment andRemuneration Committee

Supervision

ReportProposals

Selection/supervision/
dismissal

Advising

Collaboration

Audit
corporation

Collaboration

Accounting audit

28

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Governance
Board of Directors

Audit and Supervisory Committee

The company's Board of Directors has 10 directors, of which six are external directors (including three members of the Audit andSupervisory Committee). It convenes once a month in principle. The Board of Directors makes decisions on matters important to the
execution of the company's business, and oversees the execution of directors' duties. In fiscal 2020, the Board of Directors met 14
times, with a high attendance rate by all directors. At meetings of the Board of Directors, the President acts as chair to respectfully
draw out the opinions of directors, not from the viewpoint of short-term benefits, but rather to discuss even seemingly irrelevant policies
or measures and other matters from the perspective of medium- to long-term business growth.

The Audit and Supervisory Committee consists of three external directors. In addition to attending General Meetings ofShareholders and Board of Directors meetings, directors who are Audit and Supervisory Committee members actively
participate in internal meetings and work to understand the situation within the company, including the management systemand the execution of business. The Audit and Supervisory Committee also meets regularly with the president andrepresentative director to exchange views and maintain communication on issues that the company should address, the stateof the environment for auditing by the Audit and Supervisory Committee, and other important matters pertaining to auditing.
In order to maintain close collaboration with the Internal Audit Department and the Accounting Auditor, the Audit andSupervisory Committee holds regular liaison meetings with these and otherwise engages in exchanges of information toenhance auditing functions. In addition to the Internal Audit Office, the Committee also collects information from the internal
control departments to conduct more thorough audits.

▼ Senior executive skill matrix
Name

President,
Representative Director

Tomikazu
Sano

Senior Managing
Director

Fumikatsu
SanoManaging Director

Kozo
Haruyama

Director

Naoki
Takekawa

External Director

MiharuMurakami

External Director

Kyuchan
Hwang

External Director

Keiji
Miyaki

External Director(Audit and Supervisory
Committee)

Shoji Ide

External Director(Audit and Supervisory
Committee)

SuguruWada

External Director(Audit and Supervisory
Committee)

HiroshiKamiyaManaging Executive
Officer

Akiko Ishii

Executive Officer

Norihiro
Nakasaku

Executive Officer

Kenta Imai

Executive Officer

YasushiSugiyama* CN: Carbon neutrality
CE: Circular economy

Corporate
cultureManagement
strategy

Production
technology

Overseas

CN・

Position in thecompany

CE

Finance/
Accounting/Taxation

Legalcompliance

Human
resources

IT

IR

Expertknowledge

Appointment and Remuneration Committee
The Appointment and Remuneration Committee is composed of five members: the representative director and four external
directors who are independent senior executives. As an advisory body to the Board of Directors, it conducts preliminary
deliberations on the nomination of director candidates (excluding those who serve as members of the Audit and Supervisory
Committee), remuneration for directors, and other matters.

Management Committee
Economics

The Management Committee consists of the full-time directors and the Chair of the Audit and Supervisory Committee. It may
also include some executive officers, department managers, and members of Boards of Directors of group companies, as
required for matters to be deliberated. The Management Committee generally meets once a month. to make decisions on
specific matters important to the execution of the company's business and on the timely disclosure of information.

Sustainability Committee
Procurement

The Sustainability Committee consists of full-time directors, executive officers, and some related department managers,
meeting once a month. The Sustainability Committee seeks to promote the Medium-Term Management Plan (Sustainability
Strategy) that forms our strategy for achieving sustainable development for both the group and society. As an organization
assisting decision-making by the representative director, it flexibly and actively discusses and examines the status of strategy
promotion and future directions, including new business and M&A, from a long-term perspective.

Internal Control Committee
Our group has established an Internal Control Committee chaired by the company president. This Committee consists of four
subcommittees: the Environment and Safety Promotion Committee, IT Promotion Committee, Human Resources and Labor
Reform Committee, and Business Operations Reform Committee. The Committee identifies risks, formulates
countermeasures, and builds and operates internal controls across the group, including awareness-building activities. The
Internal Control Committee generally convenes every quarter to allow presidents of group companies and members of
subcommittees to set policies, make decisions, and report on important compliance matters, litigation and legal risk matters,
and other matters that could have significant impacts on management.

29

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Creating a human resources strategy and a structure aimed at sustainable growth
Human resources strategy
linked to strategy
On July 1, the ENVIPRO Group established a new personnel department
founded on a policy of actively advancing "human resources strategy
linked to sustainability strategy". This sustainability strategy seeks toachieve our mission of "contribute to create a sustainable society," andis based on the idea that the growth of our group connects tocontribution to society. Accordingly, holding the image that the growthof our group and the well-being of our employees are closely related, weset "build a platform filled with good quality energy where employees
can work energetically" as the concept of our human resources
strategy.

Governance2021 new graduate recruitment
Our group considers the securing of diverse human resources for the
medium- to long-term enhancement of corporate value to be important.
We make efforts to hire new graduates who will lead executive
management in the future. In April 2021, eight new hires joined thegroup, including four who became ENVIPRO Inc.'s first directly-hired
new graduates. Following a three-month training period, they wereassigned to positions in July. Welcoming new employees, with existing
employees taking positions of guidance, cultivates positive energy in thework environment and revitalizes the entire group.
We will continue working to hire new graduates from the next fiscal year
onward.

Emergent capabilities, autonomy,
and discipline
The concept of happiness is changing. It is undergoing a shift from thehappiness of devoting one's self to the company for life, to demands forsustainable happiness through experiences including personal growth,a sense of fulfillment, and a sense of accomplishment. Happiness
differs for every individual. Against that background, companies must
prepare diverse working styles, conditions, and environments and mustbuild a base that allows free choice through self-discipline. The
organizational image that our group should strive for is that of "adisciplined group of autonomous individuals equipped with emergent
capabilities". "Emergent" refers to human resources who can think,
move, discuss, and collaborate on their own. "Autonomous individuals"
are persons who act according to normative standards they themselves
set. By collaborating with individuals from diverse backgrounds who are
equipped with these two capabilities, we seek to become a "disciplined
group" grounded in our corporate philosophy.

Corporate Data

Group photo of fiscal 2020 new employees

TOPIC

A new structure for the promotion of sustainability strategy

Three new directors have been appointed at ECONECOL Inc. this fiscal year,with the aim of achieving further growth for the group and the promotion ofsustainability strategy. For about 70 years since its founding, ECONECOL
has shouldered metal resource processing, recycling, and other corebusinesses of the group. It plays a key role in promptly detecting changes in

Director
Engineering Department
Manager

Masaki Hayakawa

social needs and actively undertaking technological evolution and new
business initiatives to lead the group. The three directors, who have on-siteexperience in business development, plant design, sales, and other areas,
will work across the group to strengthen alliances while actively engaging inbusiness activities for the sustainable growth of the company and society.

Director
Production Department
Manager

Noritaka Akiyama

Director of Sales andBusiness Development
Department Manager

Hirohito Endo

Personnel strategy
As a sustainability strategy and a personnel strategy to achieve ourimage for the organization, we will promote the following five priority
measures.
● Enhancement of the quality of relationships through dialog● Respect for diversity● Creation of comfortable workplaces● Merit-based personnel system● Fostering of corporate culture"For society, for companies, and for one's
own work, continuation is vital. We will press
on, valuing further technological innovationand transmission to the next generation!""Our business is growing in importanceas the world changes. We will tackle
new businesses with cheerfulness, fun,and energy!""What's important is creating fans. Being acompany, and people, who earn expectations andtrust. We will stay on the lookout and continue tomeet the needs of customers and society!"30

Table of Contents /Editorial Policy

Corporate Vision

Message from the
President

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

GovernanceOur challenge: "Contribute to create a sustainable society"Approach to the Medium-Term
Management Plan

MissionMedium-Term
Management Plan
Fiscal year
business plan

Our group will optimize its business portfolio by deepening orwithdrawing from existing businesses and by exploring new
businesses.

● Expansion of municipalities collecting riddling ash● Strengthening wide-area cleaning and dismantling

Resource
Circulation
Business

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

business with a nationwide perspective● Construction of new plants● Installation of large shredders● Respond with the Act on Promotion of
Resource Circulation for Plastics● Promotion of M&A

colle

C h emGlobal Trading
Business

Strategy for achieving our long-term vision(July 2021 - June 2026)

Specific initiatives to achieve the Medium-Term
Management Plan

Fostering corporate culture andenhancing value through uniquenessOur group believes that instilling our corporate philosophy throughout theorganization and aligning it with our everyday business activities is the mostimportant aspect of governance, and is an indispensable undertaking for thesustainable enhancement of corporate value. In order to do so, we equip
employees with copies of our Management Plan that clearly sets out our
corporate philosophy, values, and norm of conduct. By utilizing the ourManagement Plan in our business activities, instilling our corporate
philosophy throughout the organization, and fostering our corporate culture,
we will continue to sincerely hone the individual functions of competitive
organizations that enhance economic, environmental, and social value.

Lithium-ion
Battery
Recycling
Business
Other Business● Welfare Service

Business for
People with
Disabilities● Environmental
Management
Consulting
Business● Construction of new black mass plant● Building alliances● Establishment of hydrometallurgy plantsyc
al recste plastics

ttery recycling

Existing business environmental management consulting,welfare services for people with disabilities

2020

2030

Profit distribution
The group's approach to profit distribution is to follow a general standard of
30% for investment in growth fields, 10% for research and development,
20% to 30% for dividends as a return to shareholders, and 30% to 40% forinternal reserves.

● Promotion of employment of people withdisabilities through enhancement of
employment support and growth of social
farming● Group synergies through expansion of
consulting on TCFD and other circular
economy-related and climatechange-related issuessRecycling resources, global trading,and of domestic and international stockyards● Promotion of scrap initiatives for ferrous

metals, nonferrous metals, specialty,
precious, and all other metals● Development of new products

bus

A ir

f wa
ling oLithium-ion ba● Expansion of import/export/trilateral trade

The ENVIPRO Group's significance in the world,
and its purpose and aspirations on a defined
timeline (the 30 years until 2050)

ic

cti

ne s

i
fter
a sh ation sludge
cineraedimentin
aste r s
o f w oppe
cling r & c
Recy old, silve
cling
recy
fg
o
n
o
cr a f t
N ew

Synergies among group companies

Corporatephilosophy

In order to advance our business strategy, our group (1) will possess andconstantly reform overwhelming technological advantages, (2) will
strengthen and constantly hone organizational sales capabilities based onhigh technological capabilities, and (3) will possess and constantly enhance
dynamic international distribution capabilities. Drawing on those premises,
we will "deepen our existing businesses", "explore new businesses", and"optimize our business portfolio".

Long-term initiatives to create
corporate value

Corporate value

In August 2021, ENVIPRO HOLDINGS Inc. reviewed the 5-year Medium-Term
Management Plan (Sustainability Strategy) formulated in 2018 to achievesustainable development of both the group and society. The Plan's
management targets for the period ending July 2026 include net sales of 70
billion yen, ordinary profit of 4 billion yen, and ROE of 15.0%. The corporate
value to which our group aspires is to enhance economic, environmental, andsocial value and to strengthen governance for maintaining these, to become
a company that is strongly needed by the world to create a sustainable
society. Toward that end, we want to build a "platform" filled with good quality
energy where employees can work energetically. We will advance theconstruction of these foundations and will promote diverse businesses asopportunities for the resolution of issues, aiming to achieve a "decarbonizedsociety", "circular economy society, distributed society".

Specific actions to achieve the strategy

Item
Growth investments
Research and development

Ratio
30%
10%

Return to shareholders

20%-30%Internal reserves

30%-40%31