Table of Contents /Editorial Policy

Corporate Vision

Message from thePresident

Sustainability Strategy 01

A History ofValue Creation

Sustainability
Strategy

Action Plan

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

The value creation process

Societal trends surrounding the ENVIPRO Group

Long-term trends

GX

Resource Circulation
Business

Green Transformation
Through advanced initiatives such as the transition to renewable energythat does not release greenhouse gases, green transformation willtransform industrial structure and the socio-economy, realize adecarbonized society without stagnation of economic activities, andconnect these to the further growth of companies and of society.

DXDigital Transformation
Digital Transformation responds to drastic changes in society, makes
use of data and digital technologies, and transforms products, services,and business models on the basis of the needs of customers andsociety, while also transforming organizations, processes, corporate
culture, and business itself to establish competitive advantage.

Medium- and short-term trends

Environmental
issuesDevelopment of carbon neutrality + development of circular economy + Act on Promotion of Resource Circulation for Plastics

Rapid expansion of demand for green materials and rapid acceleration of the circular economy

demand for ferrous scrap due to
01 Increased
expansion of electric furnaces
Amid demands for decarbonization of the steel
manufacturing process, expansion of electric furnaces that
release 1/4 the CO2 emissions of blast furnaces is planned,
and demand for ferrous scrap is expected to increase.

Social issues

With the promotion of renewable energy andelectrification, the recycling of mineral resources
used in storage batteries and electrical appliances
will become necessary.

Waste plastics, which are produced, consumed,and discarded in large quantities and havebecome a major social issue, face demands for
reduction in use and for resource recycling.

Post-COVID era (lifestyle & business style without face-to-face and personal contact) +US-China trade friction + shrinking working population

Identification ofmateriality

demand for nonferrous metalsof advanced resource
02 Increased
03 Promotion
and minor metals in line with electrification
recycling for waste plastics

01 Production and supply of green materials in the supply chain
02 To promote GX and DX in all processes of business activities
promote diverse work styles and accelerate automated operations
03 To
and the reduction of the labor required06

Table of Contents /Editorial Policy

Corporate Vision

Message from thePresident

Sustainability Strategy 01

A History ofValue Creation

Sustainability
Strategy

Resource Circulation
BusinessAction Plan

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data07

The value creation process

By building a circular economy model based on carbon neutrality,
we seek to enhance economic, environmental, and social value.

The ENVIPRO Group circular economy modelCa

The ENVIPRO Group
Medium-Term
Management PlanReuse

V IPR O G r oup

Eliminating
CO2 emissions
in the resource
recyclingprocess

Mission statement

Two environmental valuesly

Productionof green
materials

Carbon neutrality
Recycled materials
manufactured withcarbon neutrality
from above groundresources (wastes)

SuU

Supply chain

seSal

Vision to be achieved through business activities

Green materials

es

M a n u f ac t urin

gPro

em
cur

Corporate philosophy

Recycled raw materials

ion
Waste disposal

Aboutpp

Recreating
resourcevalue

Reductionof wasteEN

The Foundation of theENVIPRO GroupReming
turac
uf
an

Abovegroundresources(wastes)ect

We aim to establish high-level
manufacturing processes thatreflect the elements of Quality,Cost, and Delivery date, alongwith Carbon neutrality.

RecyclingC o llTransformation intoa manufacturer ofmaterials derived
from above groundresources throughlow-carbon
processes (QCDC)

r b o n n e u t r a lit yent

• Technological capability• Sales capability• Distribution power• Collection capability• Inventiveness• Productive capacity• Trading force

01 Economic value 02 Environmental value 03 Social value

Contribute to create a sustainable society

Table of Contents /Editorial Policy

Corporate Vision

Message from thePresident

Sustainability Strategy 02

A History ofValue Creation

Sustainability
StrategyAction Plan

Resource Circulation
Business

Global TradingBusiness

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Initiatives to achieve the SDGs

The ENVIPRO Group's approach to the SDGs
The ENVIPRO Group has identified SDGs that are consistent with the nature of our business and our mission statement of"contribute to create a sustainable society," around which we engage in activities to achieve the SDGs.

Making every effort with every partner
As actions aimed at achieving the SDGs, we will advancecollaboration within the group, with companies in the supply chain,
and with administrative agencies, local communities, and citizens.
● Partnerships

Through participation in corporate groups and international
initiatives, we are expanding partnerships aimed at achieving asustainable society.
■ Japan Climate Leaders' Partnership (JCLP)■ RE100 ■ CDP*1 Scoring Partner■ Clean Ocean Material Alliance (CLOMA)*1 CDP: An international initiative for the disclosure of information onclimate change response

Contribution to theeconomy● No Poverty● Technological Innovation

1. By enhancing the efficiency and the profitability of businessactivities, including in the Resource Circulation Business, weaim to increase employees' income and improve their qualityof life.
9. At the laboratories of ENVIPRO HOLDINGS Inc., we areworking on the development of technology to recover theminor metals cobalt and nickel with high purity from waste
lithium ion batteries through hydrometallurgy, and theenhancement of analysis accuracy, to contribute to thedevelopment of technology that will form the basis of acircular economy and a decarbonized society.

Contribution to ● Healthsociety● Education● Working Environment● Gender● Equality● Community Development

3. We prevent water and soil pollution and contamination byproperly managing scrap materials at our plants, which
comply with safety and environmental standards. We are also
promoting new ways of working, including telecommuting
and flextime, as measures to prevent the spread of COVID-19
and infection among employees.
4. We have set up a variety of training programs for improving
employees' skills, including a business school for employees.

5. We have introduced systems for telecommuting andshortened working hours for permanent employees, andprovide an environment that lets employees, including thoseraising children or performing family care, choose a working
style that fits them best.
8. ENVIPRO HOLDINGS Inc. began recruiting new graduates infiscal 2019. To build upon our ongoing practice ofemployment of the physically challenged we will offer worthy
job opportunities for people of different backgrounds. We
thoroughly implement measures to prevent work accidents atour plants to ensure the safety of our employees.
10. Under programs such as the pre-employment transition
support program and the type B continuous employment
support program, we provide support that enables people
with disabilities to remain engaged in rewarding work.
11. Syn Eco Plaza Azumino contributes to community
revitalization and the development of a sustainable cities andcommunities through recycling and the creation ofemployment, by collecting and recycling waste anddiscarded household items and by hiring people withdisabilities at its plant.

Contribution to the ● Climate Change

environment● Life below Water● Energy● Consumption and Production

7. We joined the RE100 *2 initiative in July 2018 and set a goal ofshifting to 100% renewable energy by 2030 for the energy
consumed in our business activities. In addition to switching
to renewable energy for the electricity used in our plants, weare installing solar panels on factory roofs and otherwise
introducing renewable energy power generation equipment.
We are also setting up palm kernel shell (PKS) stockyards inSoutheast Asia and are engaging in international distribution.
We will contribute to the supply of sustainable biomass fuelby expanding our involvement in products such as woodpellets.
*2 RE100: A name for 100% renewable electricity. This global initiative
brings together companies committed to procuring 100% renewableenergy for use in business.

12. We contribute to the circulation of limited resources and thereduction of waste by engaging in the recycling business toextract precious metals from metal scrap and waste, and theremanufacturing business to produce recycled raw
materials.
13. Under the goal we have set of achieving carbon neutrality by2050, we will work to reduce CO2 emissions from ourbusiness activities. We also contribute to the reduction ofemissions across the supply chain through our mainstay
recycling and remanufacturing businesses. In May 2019, wepublicly endorsed the Recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD). We will
identify and evaluate opportunities and risks placed on ourbusinesses by climate change, integrate these into ourbusiness strategies, and engage in appropriate information
disclosure.
14. We contribute to the prevention of marine pollution
stemming from plastics by developing technologies to sort
waste plastics for recycling into pellets and by promoting thedevelopment of applications for recycled materials.

08