Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Resource Circulation Business
Flow of Treatment/Processing in the Resource Circulation Business

INPUT

Above-ground resources(waste)RECYCLING

Paper waste, sponges, light dust, and lightweight plastics

Materials are finely shredded
for recycling.

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

Shredding

Magnetic separation

Ferrous scrap

Incineration

Dry specific gravity separation

RPF

Automobiles
Photocopiers■ Microwave ovens■ Vacuum cleaners■ Smartphones, etc.
■■

FerrousmetalsNonferrous
metals

CopperAir separation
Paper waste, sponges,
and light dust areremoved from theshredded mixture
using air separators.

Heavy particles

Refuse paper andplastic fuel (RPF) plantLight particles

RPF and other solid fuel are
produced from waste.

LiquidElectronic circuit boards

Aluminum

Heavy particles

Separation

Shredded steel scrap

Light particles

Air power

Automobiles

Materials for
cementproduction

Waste is sorted by using vibration
and upward air flow.

Agitation
propellers

Small home appliances

OUTPUT
Recreating resource value

Wet specific gravity separation
The specific gravity of a liquid that combines water and a specific metal powder is adjusted
according to the items to be extracted, separating items into those that float and those that settle.

Eddy current separation
Falling non-magnetic metals
are sorted using magnetic
repulsion.

Gold, silver, and copper
sediment sludge*2

Ferrous metals

Riddling ash*1

REUSE

GLOBAL TRADINGREMANUFACTURING
Plastics for fuelExport overseas■

Airplanes■

Used cars
ExtruderPlastics

Materials manufacturers

RPF (solid fuel)*3

Plastic pellets
Aluminum
Tires

Copper

Gold, silver,
and copper
sediment sludge

Plastics for fuelExtruded materials

Rubber chips*1 Riddling ash is ash that falls through the grate of a stoker furnace when waste is incinerated.
*2 Gold, silver, and copper sediment sludge is a mixture of gold, silver, copper, platinum, and palladium.
*3 RPF, which stands for “Refuse derived paper and plastics densified Fuel,” is a high-grade solid fuel made mainly from recovered paper and plastics (mainly from industrial waste) that are difficult to recycle as materials.

15

Sustainability Strategy

BusinessResource
Circulation
Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

ECONECOL Inc.

Business

Recycling of resources using large shredders
Collection of gold, silver, and copper sediment sludge from incineration ash
Manufacture of low-carbon raw materials and fuels
Cleaning and dismantling work
Reuse and recycling of aircraft

For moredetailed company
information

Value & Vision

Contributing to a Sustainable Society by Circulating
High-Quality Low-Carbon Raw Materials and Fuels through Society
ECONECOL Inc. was established in 1950 in the city of Fujinomiya, Shizuoka Prefecture.
Since that time, the company has been involved in the Resource Circulation Business, focusing on the recycling of metals, plastics, and waste materials.
A parent organization of the ENVIPRO Group, ECONECOL leads the recycling industry in the spirit of pursuing opportunities to reduce wastefulness.

Products made from recycled wood waste usiness of Collection Gold, Silver, and Copper
B
Sediment Sludge from Urban MinesThe Tokyo Olympics held in 2021 showcased an experiment in “urban
mining,” in which medals distributed to the winning athletes were made fromrecycled materials. While much attention has been paid to the value of waste

Comment

Our Mission:
Contribute to create a sustainable society
Fumikatsu Sano, Representative Director ECONECOL Inc.

 unning the Plant on Electric Power fromR
Renewable Sources
ECONECOL is working toward RE100, an initiative that calls for companies toprocure 100% of the electricity required for their business operations fromrenewable energy sources. The company is already using 100% of electric powerfrom renewable sources at its head office plant and Hamamatsu plants. P32
These plants recycle materials into environmentally friendly, low-carbon raw
materials and fuels for use around the world.

Reinforcing the Wood Biomass Business
In March 2022, ECONECOL absorbed Fujimi BMS Co., Ltd., reinforcing thebusiness of providing a stable and sustainable supply of wood chips, which areused as boiler fuel.
Wood waste comes in many categories, primarily from trees, construction, andwooden pallets. This wood waste can be thermally recycled. Through material
recycling, these types of wood waste can also be transformed into chips forpaper manufacturing or raw materials for medium-density fiberboard (MDF).

ECONECOL conducts resource recycling. We focus on the Resource Circulation Business,
which is in keeping with the Group’s mission “Contribute to create a sustainable society”
In addition to general ferrous and nonferrous metals, we recycle precious metals andminor metals. We combine various sorting technologies into our own proprietary
techniques for recycling valuable resources. We cooperate withproduct manufacturers to promote a circular economy in which
product, consumption, waste recycling, and manufacturing flows
lead to materials that can be recycled into product materials.We
believe that expanding our business model in this way will bring
us closer to the aim of achieving a sustainable society.

16

Sustainability Strategy

Business

ESG Initiatives

Resource
Circulation
Business

ECONECOL Inc.

electrical and electronic products as resources, most incineration ash frommunicipal waste–which contains precious metals–is still disposed of in
landfills. After years of research, ECONECOL has established a technology tocollect precious metals from some of this incineration ash. The technology
was patented in January 2019. The precious metals contained in riddlingash*1 and mixed metals are concentrated, collected, and recycled using
technology that optimizes physical sorting methods. By expanding thisinitiative to municipalities nationwide, we also plan to help reduce the amountof waste sent to landfills.
Stoker furnaces account for the majority of Japan’s general waste treatment
facilities. Nationwide, Japan has around 390 facilities capable of processing
more than 100 tons per day. In 2022, the final year of the Enlightenment
period for this project, our operations covered 2.5% of these facilities. We
regard this project as the spread period from 2023, and by 2025 we aim toreach 16% of facilities.
*1 Riddling ash is the incineration ash that falls through the grate of a stoker furnace.

(%)

30

Market share (target)

25

Target for 2028 (updated)
Stoker furnaces: 120 facilities
Net Sales: ¥2.1 billion
Operating profit: ¥0.9 billion

20

Expect toreach 5.9%

15
10
5
0

1.5%
2021

2.5%
2022

Enlightenment
period

30%

16%
10%

5.0%
2023

2024
Spreadperiod2025

2028
Growthperiod anufacturing Low-Carbon Raw Materials andM
Fuels (RPF) from Waste Plastics
Refuse derived paper and plastics densified fuel (RPF) is solid fuel made fromwaste plastics and paper waste that is difficult to recycle. An environmentally

Sustainability Report 2022

Financial and Company Data

Business

Recycling of resources using large shredders
Collection of gold, silver, and copper sediment sludge from incineration ash
Manufacture of low-carbon raw materials and fuels
Cleaning and dismantling work
Reuse and recycling of aircraft

friendly fuel, RPF offers stable quality and significantly lower CO2 emissions
than coal and other fuels. We produce about 25,000 tons of RPF per year,
most of which we supply on an ongoing basis to paper companies for use as
boiler fuel. Our plant is currently
operating around the clock, andwe intend to expand production,
as we plan to further increase
the number of clients.

RPF

For moredetailed company
information

 onstruction of a New Plant in Fuji, Shizuoka
C
Prefecture
In December 2021, we began construction of the Fuji plant, a new base ofoperations in Fuji, Shizuka Prefecture. The plant was completed in September
2022. The plant building, which is on a 13,000-square-meter site, has 6,300
square meters of floor space. Recycling equipment is steadily going into
operation. The plant uses our proprietary technology for physical sorting tocollect nonferrous metals, precious metals, and plastics from incineration
ash, mixed metals, and waste shredder residue.
The plant will ensure high productivity and improve profitability, whileproviding a safe work environment that reduces employee workloads andexternal environmental impact.

17

Sustainability Strategy

Business

ESG Initiatives

Resource
Circulation
Business

Sustainability Report 2022

Financial and Company Data

Kuroda Recycle Co., Ltd.

Business

Recycling of resources using large shredders
Collection of gold, silver, and copper sediment sludge from incineration ash
Manufacture of low-carbon raw materials and fuels
Cleaning and dismantling work

For moredetailed company
information

Value & VisionHelping to Realize a Sustainable Society through the Cleaning, Disposal, andRecycling of Unwanted Items
We are developing a community-based recycling business in southern Hokkaido, centered on the city of Hakodate.
August 2022 marked the company’s 100th anniversary of establishment. We are actively involved in dismantling work, as well as the disposal of large items,
such as automobiles and wind power generation equipment.

Providing a One-Stop Service for Dismantling Work
Kuroda Recycle Co., Ltd. provides a one-stop service for dismantling work,
including the cleanup of debris from buildings and grounds, preliminary
investigation of asbestos-containing building materials, CFC collection, andbuilding dismantling work. The company’s centralized management improves
work efficiency and reduces costs for the customer.
The company provides service throughout Hokkaido and is helping to resolve
the issue of vacant houses. These have become a social issue in Japan due
to a shrinking population, falling birthrate, and aging society.

Estimating and cleaning
Before dismantling

Preliminary survey of building materials forasbestos content

recycling facility that operates under ministerial authorization. ASR contains
metals that cannot be collected by shredding and sorting processes. We
collect small metals (gold, silver, and copper sediment sludge) by utilizing
various approaches, such as sorting by particle size and using magnetic
force, wind power, and eddy currents. After gold, silver, and copper sedimentsludge is collected from ASR, the remainderis blended with other waste plastics andconverted into fluff*1. We provide fluff tocement manufacturers, which use it as a fuelalternative to coal.
We will continue working to improve therecycling rate for end-of-life vehicles. In
particular, we will focus on research to makeour sorting technology more sophisticatedand increase processing efficiency.
Alternative fuelDismantling work

Wind and Solar Power Recycling
Hokkaido has many locations suitable for wind power generation, and numerous
generation facilities are in place in the region. Among these facilities, many havedeteriorated after reaching the end of their 20-year useful life and are being
removed. Kuroda Recycle is using its well-equipped processing facilities torecycle the large waste objects
that result (ferrous scrap, special
metals, and other materials).
Many wind turbines will be
constructed offshore in the
future. Kuroda Recycle will
utilize its freight forwarders toactively accept objects fromacross Hokkaido to marine
routes throughout Japan.
Wind power generation facility

After dismantling
Comment

A Direct Relation between
Our Work and Carbon Neutrality
Koji Nara, Representative Director Kuroda Recycle Co., Ltd.

We handle a wide variety of waste, including end-of-life vehicles and home appliances.
We also focus on dealing with the “dust” that remains after resources have beencollected through the shredding and sorting processes. The
resulting substance is a fuel alternative to coal. We supply thisfuel to cement companies to help them in their decarbonization
initiatives. Also, our production processes are powered by 100%
renewable energy sources. We will continue to promote therecycling of waste materials to meet society’s demands.

Collection Gold, Silver, and Copper Sediment
Sludge from ASR and Manufacturing Low-Carbon
Raw Materials and Fuels
Kuroda Recycle recycles automobile shredder residue (ASR), which is
produced by shredding end-of-life vehicles. The company runs an ASR

ASR recycling plant*1 Fluff (a recycled product of plastic containers and packaging) is what remains when these containers and packaging are finely cut after washing, removal of foreign matter, and drying.

18

Sustainability Strategy

BusinessResource
Circulation
Business

ESG Initiatives

SYN ECO Inc.

Sustainability Report 2022

Financial and Company Data

Business

Recycling of resources using large shredders
Cleaning and dismantling work
Recycling specified home appliances
Integrated community recycling

For moredetailed company
information

Value & Vision

Achieving Circular and Ecological Economy with the Local Community
through Recycling
SYN ECO provides a recycling business with close ties to the community. Focusing on the cities of Matsumoto and Azumino in Nagano Prefecture,
the company offers a Mottainai BOX service and recycles specified home appliances. The company has obtained a new permit for compressed packaging of waste plastics
and has begun the thermal recycling of plastics, using them as a fuel alternative to coal.

P roviding a Platform for Collecting Community
Resources: Working Closely with the Community
through Mottainai BOX Activities
SYN ECO Inc. has set up Mottainai BOX Stations as resource collection sites
at 21 locations in theItems collected at Mottainai BOX Stations
Chushin district ofNagano Prefecture. In
fiscal 2021, the company
collected 5,500 tons ofUsed clothes Waste paper Aluminum cansMetalresources. The amountcollected has been
increasing each year as
the stations grow moreconvenient.
On our updated website,
we have begun to informcustomers of our monthly
collection volumes.
Mottainai BOX
The company also
Volume (t)Amount Collected at Mottainai BOX Stations
donates a portion of the
5,527
6,000
5,294
proceeds it generates
5,000
5,001
5,214
from the collection of
4,978
3,844
4,000
resources to the local J2
3,000
2,767
League Matsumoto
2,000
Yamaga Football Club
1,983
865
and Nagano Children’s
1,000
264
Hospital.
0‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 (Year)
Mottainai BOX

characterizes the company’s commitment to local production for local
consumption by returning proceeds to the community from recycling
resources collected locally. In addition to these activities, we support
Mamafes Matsumoto activities and cooperate in events related to the reuseof children’s books and other materials, as well as other activities closely
related to the community. P40

 sing Large Shredders to Conduct High-Quality
U
Intermediate Processing
SYN ECO is the only company in Nagano Prefecture to use a large shredder
to shred and sort metals and waste plastics. Leveraging the shredder’sintermediate-processing characteristics, we shred ferrous and nonferrous
metals and composite waste, sell each recycled item, and help transformthem into new products. The mixed metals and nonferrous metals thecompany processes are sorted and recycled at Group companies, maximizing
Group synergies and economies of scale.

The Specified Home Appliance Recycling Business
SYN ECO is the only company in Nagano Prefecture that recycles home
appliances (general waste) generated in the cities of Azumino and Nagano.
When recycling specified home appliances, disassembly and sorting are doneby hand, mainly by people with disabilities, so the collection efficiency of
resources is high. The number of units processed and the recycling rate canbe checked in real time using resource recycling monitors. The system also
allows for the centralized management of incoming shipments of specified
home appliances and outgoing shipments of collected resources, so theentire recycling process can be monitored.

The number of units received in the city of Nagano, where the company
began operations in fiscal 2021, is increasing.

 educing CO2 Emitted from the Intermediate
R
Processing of Waste Plastics
In May 2022, the company received a new permit for the compressedpackaging of waste plastics. This permit opens the way to ship waste
plastics, which were previously only shredded, as raw materials for RPF andother recycled fuels. SYN ECO is collaborating in this initiative with
ECONECOL Inc., which produces RPF and other fuels. We anticipate that theinitiative will help reduce CO2 through the thermal recycling of plastics, using
them as an alternative fuel to coal. Through the effective use of theseresources, we are working toward the realization of a sustainable society.

Comment

Aiming to Be a Company Offering
Integrated Community Recycling
Shigeto Komatsu, Representative Director SYN ECO Inc.

We live and work in Nagano Prefecture, a wonderful environment rich in greenery. We
aim to be a company that contributes to the community through the local production
and consumption of products using recycled resources generated in this region.
The Mottainai BOX resource collection service that we operate receives a large numberof recyclable materials from the local community. We willcontinue returning some of our proceeds to local sports teams
and children’s hospitals.
We will continue accelerating our efforts to realize a sustainable
society. Our employees will work together as we strive to create
Circular and Ecological Economy.

19

Sustainability Strategy

BusinessResource
Circulation
Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

株式会社

Toyo Rubber Chip Co., Ltd.

東洋ゴムチップ

Business

Waste rubber recycling
Manufacture and sale of recycled rubber and rubber products
Paving work for public facilities

For moredetailed company
information

Value & Vision

Promoting the Remanufacturing Business, Turning Waste Rubber into New Products
Toyo Rubber Chip, which is centered in the city of Maebashi, Gunma Prefecture, is a pioneer in the recycled rubber industry.
The company has been making effective use of industrial resources for 80 years. We contribute to safety and security through the development of a wide range of applications,
including flooring materials for playground equipment in parks and schools, flooring materials for sports facilities, railroad crossing panels, and industrial products.

Efforts to Reduce Environmental Impact
Comment

Toyo Rubber Chip shreds and cuts waste tires and scrap rubber (wastematerials generated during the manufacture of rubber automotive parts), andthen uses this material in remanufacturing.
The company’s products are widely used as elastic pavement material,
artificial turf filler materials, and industrial products. For 80 years, thecompany has been committed to utilizing resources in different ways, rather
than wasting them. By harnessing the technology cultivated over the years,
the company aims to step up its contribution toward the realization of asustainable society.

Kozo Haruyama, Representative Director Toyo Rubber Chip Co., Ltd.

Omni-rubber panel construction of colored panels for pedestrians

Producing High-Safety Colored Rubber Chips
The company manufactures and sells colored rubber chips that are high-quality
and elastic. Colored rubber chips can help reduce damage from falling down.
Vivid colors and good workability make it possible to create attractively

designed pavements. These materials are used in public parks, hospitals,
welfare facilities, shopping centers, daycare centers, kindergartens, andmany other places to provide safety and security to visitors. (Conforms to the
HIC1000 safety standard)

A Circular Economy for Waste Rubber

Rubber-chip paving

The Tire-to-Tire Challenge

The company’s
desulfurization facilities
are capable of returning
discarded rubber tousable raw material. We
receive scrap rubber from
customers’ plants. We
then shred, desulfurize,
cool, and cut the material
to make recycled rubber

For our circular economy (CE) business, we start by developing filler material for tire
manufacturing with the aim of developing technology for the fine grinding of waste tires.
To this end, we plan to make aggressive capital investments in fine grinding technology.
In addition, to recycle waste rubber emitted from customers’ manufacturing processes weare developing new products using a new press molding machineand desulfurization and regeneration using a twin-screw extruder.
As a result, we are providing low-carbon and sustainable products
and services to achieve a closed-loop Tire-to-Tire process.
Toyo Rubber Chip is committed to help realize a sustainable
society through its recycled rubber business.

sheets. We return these sheets to our customers, where they are reborn as
new products.
We are thus creating a rubber-to-rubber circular economy by encouraging
the reuse of limited resources as new products instead of wasting them.

The Rubber Recycling Process

1 Insertion of

shredded rubber
5 Completion

Shredded products (chips)
3 Cooling

4 Cutting2 Desulfurization

Recycled rubber

20