Sustainability StrategyBusiness

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Global Trading Business
International Flow of Resources,
Used Cars, and Maintenance Parts

Asia

International flow of resources
ChinaSouth Korea
JapanFerrous scrap

Nonferrous metals

Waste paper

Plastics

Biomass fuelFerrous scrap

Nonferrous metals

Waste paper

Plastics

Biomass fuelInternational flow of resources, used cars, and maintenance parts
Used cars

Maintenance parts

TrucksHeavy machinery

Used cars

Maintenance parts

TrucksHeavy machinery

India
TaiwanBangladesh
VietnamPhilippines

ThailandCambodiaEuropeJapanUAEMalaysia

Trinidad and Tobago

Kenya

Singapore

Southeast Asia
Cambodia, Malaysia,
Singapore, Indonesia,Thailand, Vietnam, Philippines

VietnamSingapore

New Zealand

Exports from Chile toneighboring countries

Chile
UAE→Chile
Japan→Chile

Indonesia

Southeast Asia

Singapore→Chile

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Sustainability Strategy

Business

Global Trading
Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

NEWSCON Inc.

BusinessImport/export of recycled resources (ferrous scrap and nonferrous metals,
gold, silver, and copper sediment sludge, waste paper, used clothes)
Export and sale of miscellaneous items
Import and sale of biomass fuelFor moredetailed company
information

Value & Vision

Contributing to Global Resource Recycling by Helping the Group Expand its
Overseas Business
NEWSCON functions as an overseas antenna for the ENVIPRO Group. The company helps the Group optimize the recycling of resources by facilitating the global flow of recycledresources such as ferrous scrap, nonferrous metals, waste paper, and used clothes produced and collected within and outside the Group.

 omestic and Overseas Sales of Ferrous Scrap,
D
Which Is Used in Steelmaking
Ferrous scrap is an important recycled resource in Japan, which is poor innatural resources. The global trend toward decarbonization is leading to plans
to expand electric furnaces that melt ferrous scrap. This approach is said togenerate less CO2 than blast furnaces that use iron ore and coal. Demand forferrous scrap is thus slated to increase. NEWSCON conducts quality control
in accordance with customer needs and sells ferrous scrap to (blast furnaceand electric furnace) steelmakers in Japan and overseas. In response to thegrowing demand for steel in Vietnam and other countries in Southeast andSouthwest Asia, we have established new and expanded collection bases inJapan to increase the amount of steel we can collect. The company has
earned plaudits for its quality control and delivery system, which have helped
it to sustain long-term contracts. In addition, as transportation logistics growmore diverse, we have been making active use of bulk shipping (small andlarge vessels) and container transportation to sell iron and steel resources on
a global scale.

Ferrous scrap

Processing and Supply of Nonferrous Metals
NEWSCON processes and supplies a variety of nonferrous scrap that has
been shredded and sorted by ENVIPRO Group and domestic waste disposal
companies to meet the needs of domestic and international customers.
NEWSCON also uses its domestic yards and overseas network to efficiently
collect and supply various
types of nonferrous scrap.
The company is working toexpand global resource
recycling by importing
e-scrap (such as circuitboards and gold, silver,
and copper sedimentsludge) from Europe andselling it to third countries. E-scrap (waste circuit boards)

International Flow of Waste paper, Used Clothes,and Other Recycled Goods
The company exports waste paper (as a raw material for papermaking) andused clothes (reused commercial materials). We have dedicated warehouses
for waste paper in the cityof Niigata and in Imari,Saga Prefecture. Fromthese locations, we provide
fine-grained export
services starting with smalllots. The company is also
addressing the growing
cross-border market for Waste paper

e-commerce, selling Japanese appareland general merchandise such as
hygienic products. Recently, we have
expanded sales channels into Taiwanand Vietnam and other countries. Inaddition, the company is actively
engaged in the distribution of recycledresources, including waste plastics, bothin Japan and overseas.

Rubber tubes (raw materials for recycledrubber)

International Trade in Biomass Fuel
The company deals in palm kernel shells (PKS), which it sells mainly in Japan
as fuel for biomass power plants. PKS have been gaining attention as arenewable fuel. Going forward, in addition to PKS the company plans toexpand its product line to include wood pellets, new fuels and others.

22

Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

NEWSCON Inc.

Global TradingBusinessExport Volume in the Year
ended June 2022

Business

Biomass fuel:9,000

Ferrous scrap:

8,000

tons

tons

Nonferrous metals:

13,000Used clothes:

2,000

tons

NEWSCON Inc. is responsible for developing new cross-border and overseas
business for the ENVIPRO Group. Currently, we are strengthening trilateral
trade that bridges the European and Asian markets. We are also developingbases to collect the recycled resources generated from electronic devices
and EVs, which are increasing in number as electrification progresses. Thecompany is also promoting collaboration and synergy with various scrapprocessors, manufacturers, and other suppliers.
In line with the Group’s strategy, NEWSCON is constantly seeking out new
ways to optimize the reuse of energy and resources through business
investments and partnerships with other companies in the industry,generating value from the recycling of goods.
Invoking the Japanese concept of “mottainai”(which encourages us not to unnecessarily
waste materials, and to recycle products
wherever possible), we recycle usedproducts through the ENVIPRO Group
network. By finding recycling contact points

tons

Waste paper:

504,000

Invigorating Global BusinessImport/export of recycled resources (ferrous scrap and nonferrous metals,gold, silver, and copper sediment sludge, waste paper, used clothes)
Export and sale of miscellaneous items
Import and sale of biomass fueltonsthat invigorate the industry, we will contribute to the realization of a moresustainable world.

Introducing Our Overseas Bases

company provides nonferrous metals, waste paper, plastics, and various
other Japanese recyclable resources to recipients overseas. The company
established a representative office in Ho Chi Minh City in 2015 to meet theneeds of the times, and the volume handled in Vietnam has grown steadily.
To meet the needs of our customers, in addition to Japan we aim to export toVietnam from Europe, North America, and a wide range of other regions.

NEWSCON Europe Representative Office
Our representative office in the United Kingdom collects and sells nonferrous
metals, precious and other mixed metals, and electronic circuit boards.
Resources collected in Europe are sold to customers within Europe and inAsia. We are expanding our lineup of products and cultivating newcustomers and distributors. The European Representative Office collects,analyzes and disseminates to the ENVIPRO Group and its stakeholders
information on European environmental policies, recycling business models,and various decarbonization-related
topics, as well as on trading activities.
We are also working to implement ourmedium- to long-term businessstrategy of collaborating with recycling
and environmental businesses inEurope.
NEWSCON Europe Representative Office

NEWSCON Vietnam Representative Office
Recycling requires overseas involvement. Recycled resources from Japan are
circulated around with the world. As Japan is unable to fully absorb therecycled resources it generates, these resources are passed on to customers
overseas, where the raw materials gain a new lease on life.
The company delivers such valuable
resources to people around the world
who need them, when they need them.
For example, ferrous scrap is an
important recycled resource. This
scrap is exported to Vietnam and usedby local steelmakers, where it istransformed into new steel products.
In addition to ferrous scrap, the NEWSCON Vietnam Representative Office

For moredetailed company
information

CommentNEWSCON, leading “One Envi”
Hideki Yoshimi, Representative Director NEWSCON Inc.

We serve as an antenna for the ENVIPRO Group and a bridgehead for its overseas
strategy. The global trend toward carbon neutrality is leading to the rise of resource
nationalism, and lifestyles are changing as a result of the COVID-19 pandemic. As aresult, we may find ourselves in a world where conventional
wisdom no longer applies. In preparation for the new status quo,the ENVIPRO Group hopes to help realize a sustainable society
by building recycling schemes that match the right people andthe right places, leveraging a recycling network with a globalperspective.

23

Sustainability Strategy

Global TradingBusinessBusiness

ESG Initiatives

3WM Co., Ltd.

Sustainability Report 2022

Financial and Company DataBusinessE xport of and trilateral trade in used cars, trucks, heavy machinery,and maintenance parts
Logistics agency business

For moredetailed company
information

Value & Vision

Transnational recycling of resources through reuse of used cars, heavy equipment,
and maintenance parts
We supply high-quality Japanese used cars and maintenance parts to the world through our overseas bases in the UAE and Chile.
The company also promotes the reuse of used cars and maintenance parts on a global scale through the trilateral distribution of used maintenance parts.

International Distribution of Used Cars andMaintenance Parts
The corporate mission of 3WM Co., Ltd. is to “provide things that people
consider unnecessary to the people who need them.” Under this mantra, 3WM
sends used cars, auto parts, trucks, and heavy equipment from Japan andoverseas locations to countries in need. The recycling rate has been increasing
in recent years, but a first step toward reducing environmental impact is toreuse items that still have a useful life.
Electric and hybrid vehicles that feature low environmental impact arebecoming increasingly popular. Even so, gasoline and diesel vehicles are still
the mainstream in many countries where suitable infrastructure is not yet inplace. Japanese cars are particularly popular around the world because of theirhigh durability andenvironmentalperformance. Even thoughcars are an essential partof daily life and logistics
for many, high prices
make it difficult topurchase new vehicles inmany countries.
We help improve people’s
lives by providing usable
vehicles to such countries
at low prices.

F ocusing on the Trilateral Distribution of Reused
Maintenance Parts
In the past, the company mainly exported items from Japan. More recently,UAE, Middle East

we have also begun removing and reexporting maintenance parts fromcars that started out in Japan and were later exported and spent theremainder of their useful life in other countries.
As the quantity of used maintenance parts generated in Japan is expected
to decrease, we will focus on this trilateral distribution.
In particular, we are working to export parts to Latin America from New
Zealand, Australia, Singapore, Chile, and other countries.
We also have overseas subsidiaries in the UAE and Chile. Although thehurdles to overseas expansion are high, we did so ahead of ourcompetitors, and we are developing our business by working directly withlocal people.
By expanding into overseas markets directly, we have cleared the firstbarrier to trade–earning trust–and created an environment that makes it
easier for customers to buy from us.

Chile, South America

CommentExpanding the still usable to the world
Mototsugu Kuze, Representative Director 3WM Co., Ltd.

Worldwide, EV sales are growing due to expectations of lower environmental impact.
However, demand remains strong for vehicles with internal combustion engines indeveloping countries with underdeveloped infrastructures.
We use our proprietary technology to sort engines removed from end-of-life vehicles incountries around the world and redistribute them as usable products in countries
where they are still needed.
We play a role in realizing a sustainable society by recycling
end-of-life vehicles. In addition, we help reduce environmental
impact and promote economic development other countries
through our reuse business, through which we distributemaintenance parts that can still be used.

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