Sustainability Strategy

Business

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

Identifying Materiality Items (Priority Issues) to Realize our Mission
Corporate
Philosophy“Creative Company” “Circular Company”“Company Pursing Virtue”

Societal Trends Surrounding the ENVIPRO GroupThe key values of the ENVIPRO Group, and its corporate DNA (no timeline)

MissionThe corporatevalue that weseeks

Long-term
TrendsGX

GREEN
TRANSFORMATIONDXDIGITAL
TRANSFORMATION“Contribute to Create a Sustainable Society”
Demand for the establishment of a green value
chain

The ENVIPRO Group’s significance in the world, and its purpose and aspirations on a defined timeline(the years until 2050)
To become a company that has a valued role in society by increasing economic value, environmental
value, and social value and strengthening governance to sustain them.
In addition, to build a “platform” filled with good quality energy where all employees work
energetically toward this goal.

Medium- andShort-TermTrendsGrowing international competition for resources
Surfacing social issues related to waste plastics
Data utilization in non-IT businesses
Increase in utilization of IoT, AI, Robotization
Increasing competition for human resources

Identifying Materiality (Priority Issues)
MATERIALITY

01

Increasing demand for green
materials in the supply chain
Increasing demand for ferrous scrap due to building ofadditional electric furnaces
2 Increasing demand for nonferrous metals and minor metals
due to electrification
3 Promotion of advanced resource circulation of waste plastics
1

MATERIALITY

02

Reducing labor required in theproduction process,promotion of data utilization inbusiness activities

MATERIALITY

03

Investment in human resources topromote business activities

09

Sustainability StrategyBusiness

ESG Initiatives

Sustainability Report 2022

Financial and Company Data

The Value Creation Process

Mission Statement

Make a Circle of Joy Your Partner in Circular Economy

Contribute to Create a Sustainable Society

The ENVIPRO Group’s significance in the world, and its purpose and aspirations until 2050

Business Model

Materiality (Priority Issues)
Increasing demand for green
P9materials in the supply chain
Reducing labor required in the
production process, promotion of datautilization in business activities
Investment in human resources topromote business activities

Strategy Concept

Sustainability Strategy TargetsChallenging ourselves to resolve issues toward realizing a“decarbonized society,” a “circular economy society,”
and a “distributed society”(Fiscal years ending June 2023 through 2027)

Business Concept

Financial Capital
Net sales

P6

Ordinary profit

Realization of concrete examples of a circular economy

P7¥75 billion

Strengths of the ENVIPRO Group
Corporate culture(Year ended June 2022)

Financial Capital
Total assets

Instill of the corporate philosophy¥28.9 billion

Equity ratio

Trading capabilities
Global sales force

54.6%

Inventiveness

Manufacturing CapitalGroup companiesDomestic plants
Shipping ports
Overseas locations

1510144

Productive capacity

Patents held
Human Capital
Employees (consolidated)

12498

Natural Capital

Resource recovery rate 94.4%

Electric power from renewable sources 97.3%
Reduction in CO2 emissions 62.4%

Investment

Logistics capabilities

Getting things where they are needed¥20 billion• LIB recycling business• Introduction ofnew technology• Promotion of DX• Environmental
improvement• M&A

Collection capability

Collection that is diligent and flexible

P12

Growth platform

P35

Business Partners

Etc.

Helping suppliers
managedecarbonization
through safe andsecure recycling

New technology development
Lithium-ion Battery
Recycling BusinessLaboratory expansion

Employees

Management platform

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

Development ofP37

Promotion of diversity

P39

100 business promoters

Welfare Service
Business for People
with Disabilities

Image for the organization:a disciplined group of autonomous individuals with emergent abilities

Corporate Philosophy

Local Community
Contributing to thelocal community
through our business

Human Capital

Environmental
ManagementConsulting BusinessHelping to create adecarbonized societyIntellectual Capital

Resource Circulation
BusinessGlobal Trading
Business

NaturalEnvironment

13%

Manufacturing Capital

Unparalleled technical capabilities

A sales force that operates systematicallySafe and efficient production

Capital investment ¥1.6 billion
Intellectual Capital

Technological capabilities

Environmentalvalue

Economic value(Targets for fiscal year ending June 2027)

Sales capability

From idea to strategy

Social value¥5 billion

ROE

InputsValue Provided

P42

P3

Shareholders andInvestors

Natural Capital
RE100 by 2030

P37

Carbon neutral by 2050

Providing anenvironment where
diverse humanresources can workwith vigor andenthusiasm

P32Enhancing shareholder
returns throughsustainable growth10