REMATEC Innovation for the Earth REMATEC supports Fun ti campaign desig ined to REMATEC GROUP C S R - R E P O R T sel REMATEC Yasunori Tanaka President and CEO REMATEC Holdings Corporation
Building zero-waste
infrastructure through
open innovation
With a sufficient number of countries having agreed to its target emission levels and other conditions, the Paris Agreement entered into force on November 4, 2016, prior to its ratification by Japan. The world is now set to revolutionize existing socio-economic values in a dramatic pivot toward decarbonization by setting ambitious goals that go beyond conventional wisdom. For instance, following a meeting held by its ruling and opposition parties to discuss a policy for switching to green energy vehicles completely by 2025. Norway is reported to be moving ahead with preparations to completely ban the sale of gasoline and diesel vehicles. Indeed, similar reports from other parts of the world highlight the fact that a major paradigm shift is taking place at this very moment. The REMATEC Group has set a medium- to long-term management vision of transitioning into a corporate group that plays a leading role in supporting the use of zero-waste infrastructure in society. This initiative is faithful to our corporate mission of using eco-innovation to address social challenges, as well as our corporate slogan of “Innovation for the Earth.” By leveraging ideas derived from our wealth of experience to bring about this innovation while also pursuing coexistence and co- prosperity with the communities in which we operate, we aim to ensure that our corporate group remains a trusted and indispensable community member. Special Feature 1 looks at how our group companies are working to adapt to the revised version of ISO 14001 by integrating their various management systems to create a new, more efficient system. We are confident that we will be able to operate our new management system effectively by clarifying the objectives and strategies of each business and organization in our Group, as well as clarifying how we will address the challenges facing them, the needs of our stakeholders and the relevant types of risks. In addition to our business activities, we also prioritize compliance with the laws and regulations governing the various environments in which we conduct our corporate activities. With this in mind, we have established volunteer standards to support more rigorous oversight of these activities. As a responsible member of society, we strive to protect the environment and ensure health and safety for all, while also taking into account the impact that our business has on local communities. Special Feature 2 describes the open innovation that Re:CS and other like-minded companies from the Kansai region are jointly pursuing with the aim of ushering in the society that we are striving for much more quickly and effectively. The company is committed to fulfilling its mission to create zero-waste infrastructure by building up a strong alliance network that is underpinned by trust. In fact, the extensive network of Re:CS and the rest of the REMATEC Group is united in its efforts to build zero- waste infrastructure. Our recent drive to expand our business activities overseas has been centered on Southeast Asia. To address the social challenges posed by waste in emerging economies, we have entered into a joint venture with the Siam Cement Group (SCG), Thailand's largest corporate group, to develop a new solution for recycling urban waste using cement kilns. The first plant will enter operation in early 2017. Plans for a second plant are now underway, and the plant is scheduled to come online in fiscal 2017. In Malaysia, our Group is tackling the environmental challenges posed by palm oil mils, which operate in one of the country’s key industries. Residue from the palm oil production process contains chlorine, potassium, and other components that make it unsuitable for use as a fuel. As a result, the residue is often left unused. We are working with one of our local partners to convert this unused biomass into fuel and energy by applying our own proprietary technologies, such as those used to remove chlorine and potassium for biomass fuel production and to ferment methane for biogas production. A pilot plant is under construction, and test operations are set to begin by the end of this year. To build zero-waste infrastructure, we need to pursue open innovation not only within our own corporate group, but also in partnership with like-minded companies, NPOs, and other organizations. The REMATEC Group will continue to collaborate with its domestic and international partners toward achieving this shared goal. We also aim to retain the trust of all of our stakeholders by working to ensure the professional development and happiness of all our employees, while continuing to pursue coexistence and co-prosperity with local communities. Going forward, we hope that we will continue to enjoy the support of all of our stakeholders. Re:CS Co.,Ltd. · · · · · · · ·· ··· ·· Data Environmental Performance Data · 34 Qualifications · · · · · · · · ·· ··· ··· ·· · · · · · External Adviser Feedback ・・・・・・・・ 36 Group Company Information · Editorial policy The REMATEC Group discloses information on its CSR activities in order to report them to all stakeholders. This CSR Report 2016 provides an overview of the new management system that we are introducing from this fiscal year. The objectives and advantages of the new system—as well as the 3-year plan that is based on it—are described in terms of both ■■Target organization:REMATEC Group ■ Date of publication:December 1, 2016 ■■This report describes the REMATEC Group’s CSR programs and initiatives. For updates on the business and daily operations of our group companies, please visit our website http://www.rematec.co.jp ■ Reference guidelines: Sustainability Reporting Guidelines, published by GRI the Group as a whole and its member companies. In addition to providing information on Group-wide initiatives for tackling environmental problems, this report also allocates pages to the initiatives being carried out by each group company. We hope that this report will give you a clearer understanding of the REMATEC Group’s CSR activities. The Environmental Reporting Guidelines 2012, published by the Japanese Ministry of the Environment The Planning Guidelines for Regional Countermeasures against Global Warming, published by the Japanese Ministry of the Environment All inquiries regarding this report should be addressed to: REMATEC Holdings Corporation 11-1 Jizohama-cho, Kishiwada-shi, Osaka 596-0015, Japan report@rematec.co.jp
Contents
Message from the President ・・・・・・・ 02 The Journey So Far Our Business Activities ・・・・・・・・・・ 06 Special Feature 1 Our Commitment to Safety and the Environment  ・・・・・・・・・・・・・ 08 New Management System ・・・・・・ 10 Our Eco-First Commitment—Activity Report  1 4
Special Feature 2
Open Innovation and Overseas Business  ・ ・ ・ ・ ・ ・ ・ ・ ・  ・  16
Group Company Informati
REMATEC Group・・・・・・・・・・・・・・ 18 REMATEC Corporation ・・・・・・・・・ 20 REMATEC KYUSHU Corporation ・22 REMATEC TOHOKU Corporation ・24 REMATEC R&D Corporation ・・・・・ 26 RTT Corporation  ・・・・・・・・・・・・・ 28 REMATEC&KSN THAILAND ・・・・・ 30 90 Blots Since its foundation, the REMATEC Group has tackled a variety of social challenges in the environmental field. We will continue to pursue innovation by leveraging our experience, our know-how, and our three strengths: planning capabilities, technical expertise, and quick on-site responses. REMATEC GROUP History ◆Establishment of Kinki Environmental Industry Co., Ltd. Kinki Environmental Industry Co., Ltd. (later renamed REMATEC Corporation) was established to treat waste oil and liquid, the principal cause of marine pollution. �Launch of RF business 1983 ◆Construction of an RF plant at the Osaka Plant ◆Establishment of our Kitakyushu Office and launch 1985 of tank cleaning business 1988 ◆Construction of an RF plant at the Kyushu Plant ◆Waste disposal and management for the Kansai International Airport construction project 1993 �Replacement of the Osaka Plant ◆Transfer of waste disposal and recycling technology (RF production) to Taiwan �Disposal and management of waste generated by the Great Hanshin-Awaji Earthquake ◆Transfer of waste disposal and recycling technology (RF production) to Ulsan, South Korea ◆Clean-up of oil discharged from the shipwrecked Russian tanker Nakhodka off Fukui Prefecture 1991 Of the 59,000 tons of oil (including seawater, oily waste, and oily sand) that was collected, we disposed of 10,000 tons (equivalent to 50,000 drums) at our plants and those of our partner companies. ◆Collection and disposal of fuel oil and coastal clean-up following an accident that occurred during the transportation of livestock feed off Shibushi, Kagoshima Prefecture After a transport ship ran aground during a typhoon, we collected and disposed of about 600 tons of oil that was left in the ship's fuel tank as well as its cargo and oil absorbents. �Project for cleaning up the illegal dumping site at the Iwate-Aomori prefectural border One of the largest cases of illegal dumping at that time was found at the Iwate-Aomori prefectural border. We provided consulting services, including project planning and design of on-site facilities, to help clean up the site. �Construction of the world’s first subcritical water treatment plant for commercial use �Disposal of waste discharged from the Grand Lucky when it ran aground off Fukue Island, Nagasaki Prefecture ◆Comprehensive waste disposal management for Green Front Sakai ◆Design, construction, and operation support for a biomass oil fuel (BOF) production plant in Iwate Prefecture ◆Development of layered-type solubilizing equipment that uses subcritical water for urban methane fermentation systems ◆Recycling project for difficult-to-handle waste (NaK project) Waste NaK, which is a difficult-to-handle alloy of sodium (Na) and potassium (K), was discharged from a facility conducting research into NaK for use as a cooling agent in nuclear reactors. Under the supervision of experts, we safely recycled this waste to prevent chemical pollution of the environment. ◆Project for the removal of obstacles caused by specific types of industrial waste dumped illegally in northern Gifu Prefecture During its disposal, the illegally dumped industrial waste was found to have caught fire. We proposed extinguishing the fire by injecting water underground, and this method proved successful. ◆Change of the company name to REMATEC Corporation ◆Treatment of sewage sludge using subcritical water and technical development of methane fermentation systems ◆Collection and disposal of fuel oil discharged from a shipwreck off Tsukumi Bay, Oita Prefecture ◆Great East Japan Earthquake Recovery Project (Iwate Prefecture) We designed, constructed, and provided assistance for a desalination plant that disposes of disaster waste covered with seawater, secondary sorting plants that sort temporarily stored disaster waste, and a soil classification plant that disposes of tsunami deposits. We also disposed of disaster waste through our desalination work (about 935,000 tons) and our secondary sorting work (about 840,000 tons in Ofunato City and about 1.19 million tons in Rikuzentakata City). ◆Consulting services for the collection and disposal of fuel oil and waste discharged from a cargo ship when it ran aground in Kanazawa Port, Toyama Prefecture When a Panama-registered cargo ship carrying about 3,000 tons of steel and pipes from Dalian, China, ran aground, we collected and disposed of about 400 kl of fuel oil that was left in the ship. ◆Cleaning up of a site where drums were illegally dumped in Otsu City, Shiga Prefecture 2012 2013 ◆Establishment of an overseas subsidiary (Thailand) We established REMATEC & KSN Thailand (RKT) as a joint venture with our technical partner Kansai Saisigen Network ◆Construction of a plant for the trial production of biogas from sewage sludge and start of an acceptance test 2014 ◆Hiroshima disaster recovery project We appropriately disposed of waste generated by heavy rain and mudslides in Hiroshima City. ◆Establishment of Green Conservation Solutions (GCS) through a joint venture between SCG and RKT ◆Startup of the MF Power-1 biogas power plant
International
1960 —— ◆Period of rapid economic growth - 1963 ◆Basic Act for Environmental Pollution Control enforced 1967一◆Waste Management and Public Cleansing Act enacted 1970 - 1971 —— ◆Environment Agency established - 1975 ◆Partial Test Ban Treaty signed by U.S., U.K.,一一and Soviet Union ◆Ramsar Convention (protection of water birds and —— wetlands) effect ◆London Convention (regulation of waste  dumping and incineration at sea) effect ◆Washington Convention (protection of wild plants and animals) effect ◆Vienna Convention for the Protection of the —— 1988 —— ◆Ozone Layer Protection Act enacted 1979 —— �Act on the Rational Use of Energy enacted and enforced Ozone Layer effect ◆Sofia Protocol (elimination of acid rain) effect —— 1991 ◆Earth Summit held (Rio de Janeiro) —— 1992 —— Rio Declaration, Agenda 21, Convention on Biological Diversity, and U.N. Framework Convention on Climate Change adopted ◆Basel Convention (regulation of transboundary movement of waste) effect ◆Act on the Conservation of Endangered Species of Wild Fauna and Flora enacted – ©Great Hanshin-Awaji Earthquake 1993 — �Basic Environment Act enforced ◆Energy-saving and Recycling Support Act enforced ◆COP3 Kyoto Conference on Climate Change held —— 1997 —— ◆Environmental Impact Assessment Act enacted 1998 —— �Act on the Promotion of Global Warming Countermeasures enacted S ヨルロ1999 ── ◆Act on Special Measures against Dioxins enacted 2000 ── ◆Basic Act on Establishing a Sound Material- Cycle Society enforced 2001 ── ◆Act on Pollutant Release and Transfer Register (PRTR Act) enacted �Ministry of the Environment established ◆Act on the Promotion of Effective Utilization of Resources enforced ◆Act Partially Revising the Act on the Rational Use of Energy ◆World Summit on Sustainable Development held —— 2002 —— (Johannesburg) (2002 Act on the Rational Use of Energy) enacted ◆Kyoto Protocol took effect —— 2005 ◆1996 Protocol to the London Convention —— 2006 (general ban on dumping of waste at sea) took effect 2008 ── ◆Basic Act on Biodiversity enforced 2009 ── ◆Eco-point incentive program launched 2011 ── @Great East Japan Earthquake 2012 ── ◆Feed-in tariff system for renewable energy launched �COP21 Climate Conference held and Paris —— 2015 Agreement concluded ◆Paris Agreement took effect — 2016 — ◆ISO 9001 and 14001 standards revised 2010 1995 2011 2015 REMATEC
Two key business domains helping to solve environmental problems
We tackle domestic and overseas environmental problems through our two main lines of business—resource recycling and renewable energy—and our long-term strengths of planning capabilities, technical expertise, and quick on-site responses.
RF business
(technologies for making fossil fuel substitutes)
We aim to dispose of waste oil and liquid, the major causes of the marine pollution issue that emerged as a social problem in the 1960s, in an appropriate and eco-friendly way. To this end, we developed reclaimed fuel (RF), which is a reversible thixotropic composite of auxiliary fuel used in cement pyroprocessing (Patent No. 3039644). Using our own proprietary mixing technology, we can transform industrial waste into fuel without causing secondary pollution. In this way, RF can reduce CO; emissions and other environmental loads. We have recently begun providing Asian countries with technical assistance related to RF.
Network and logistics business
Our network and logistics business connects the venous industry, which includes businesses engaged in waste recycling, with the arterial industry, which includes businesses engaged in the supply of raw materials, products, and energy. As well as providing various types of vehicles, mainly for the handling of hazardous materials, that are designed to meet our customers' needs, we also offer a comprehensive service for the collection, transportation, and recycling of waste and produce valuable waste by leveraging the integrated technologies and know-how of the venous and arterial industries. We not only contribute to a reduction in CO; emissions by promoting efficient waste recycling, reducing waste generation, and making waste distribution more efficient, but also help our customers to reduce their waste disposal costs.
Environmental restoration business
In the event of an environmental problem such as s oil contamination due to the illegal dumping of industrial waste, oil spills caused by shipwrecks or large amounts of debris being generated by natural disasters, we aim to help the local residents return to a comfortable and safe way of life by resolving the problem quickly and appropriately. To this end, we have established an integrated treatment scheme to handle everything from transportation, analysis and precision sorting through to waste recycling. We also submit and implement proposals on how to collect and dispose of spilled oil. By leveraging our Group's strengths, we are able to restore the lives and living environments of the local residents. Channel off Miura City, Kanagawa Prefecture
Maintenance business
Taking full advantage of the know-how that we have accumulated through our 20 years of experience in equipment maintenance, we submit and implement proposals on maintenance and safety measures that will meet the individual needs of the customer. We also provide a comprehensive management service that proposes recycling and disposal methods suited to cleaning water and other waste generated during the cleaning of large tanks and other equipment. Examples of our maintenance services Cleaning of tanks for crude oil, crude Ultra-high pressure cleaning Maritime disaster recovery and waste consulting service Removal and filling of catalysts for chemical plants Removal of ultrafine powder
Biogas power generation business
Biogas power generation involves the generation of power using biogas (a mixture of methane and CO ) generated from organic waste (such as livestock waste, food waste, sewage sludge, and energy crops) through a microbial reaction. This type of power generation has a variety of advantages, such as not generating CO , emissions, being capable of producing energy efficiently even from organic matter with a high moisture content, and making it possible to use the processing residue as liquid fertilizer. Our biogas business can also contribute to the local consumption of locally produced energy and to regional revitalization by promoting distributed power generation and regional cooperation.
Solar power generation business
Solar power involves the generation of power by transforming sunlight directly into electricity using solar batteries. This type of power generation, which makes use of the natural energy of sunlight, can reduce CO; emissions and fossil fuel consumption at thermal power plants. Our solar power generation business is based at three locations in Japan: the Kagoshima Power Plant (location: Makurazaki City, Kagoshima Prefecture; rated output: 1,990 kW); the Okayama Power Plant (location: Kasaoka City, Okayama Prefecture; rated output: 1,990 kW); and the Kumamoto Power Plant (location: Yamaga City, Kumamoto Prefecture; rated output: 490 kW). Expectations concerning the role that eco-friendly energy can play in resolving both energy problems and global environmental problems are growing. We remain committed to the stable production of renewable energy—which offers an eco-friendly means of generating electricity more safely—through the use of the data and expertise that we have acquired with regard to the efficient and stable generation of power. As part of our commitment to corporate social responsibility, we will also contribute to society by reducing the environmental loads. n a fermentation tank, methans bacteria consume the nutrients contained in waste to generate biog % The reduction in CO: emissions attributed to solar power generation was calculated based on the Labeling Guidelines (FY 2015) produced by the Japan Photovoltaic Energy Association (JPEA). 06 REMATEC GROUP
The REMATEC Group has introduced a new system
to carry out its mission more reliably and safely
Management philosophy Building the society we envision ©A society where people can live safely and comfortably ©A sustainable society where economic development can be achieved without harming the environment ●A recycling society that is in harmony with nature Fulfilling corporate roles and social responsibilities ©Pursuing value creation ①Taking responsibility for the effects of organizations on society ©Contributing to solutions to social challenges
Safety and health principles
As it strives to contribute to society through its business and other activities, the REMATEC Group recognizes that the health and safety of its employees forms the basis of the company and its social responsibilities. Out of respect for all people, the REMATEC Group promotes health and safety under the guiding principles of "safety first" and "comfortable working environment.'
Environmental principles
The REMATEC Group recognizes that conservation of the global environment is a key priority for humankind to achieve sustainable development. Therefore, in accordance with its basic environmental principles for helping to create a sustainable society, the Group carries out its business and other operations in harmony with the environment while working to reduce the environmental loads and to save energy and resources
■ Management systems
The REMATEC Group has combined three management systems (business, environmental, and occupational safety and health) with the aim of promoting CSR initiatives and business operations in an integrated manner. It is working on daily business operations and problem- solving from these three perspectives. With the aim of contributing to the creation of a sustainable society, the REMATEC Group is mobilizing its core technologies for recycling materials to promote the economic and efficient use of global resources.
Corporate slogan and concept for CSR commitment
Innovation for the Earth
Mission of the REMATEC Group Use eco-innovation to address social challenges
■Two key business domains
■ Three unique strengths
The backgrounds and causes of environmental problems vary greatly from one country or territory to another. In order to help solve environmental problems, the REMATEC Group focuses on two businesses: resource recycling and renewable energy. It works flexibly to meet its challenges in a far-sighted manner in the best interests of each local community. The REMATEC Group contributes to solving the challenges that each local community is facing by bringing together the planning capabilities, technical expertise, and quick on-site responses that it has developed through long years of experience and know-how while keeping close ties with the community, listening to its opinions, and garnering its cooperation.
The REMATEC Remembrance Day pledge and
establishment of a new system for ensuring safety
On July 28, 1997, a fire broke out at REMATEC KYUSHU despite the safety management activities and efforts that we had been undertaking on a daily basis. Our desire to draw lessons from this accident led to us observing the date as REMATEC Remembrance Day with keen awareness of the importance of safe work management. Every year, all of our group companies participate in the Group Safety, Health, and Environmental Committee. The committee also held a meeting in 2016, where all of the committee members and executives were united in their desire to enhance and reinforce awareness of safety measures. Furthermore, a new integrated management system for managing the Group as a whole was developed in 2016 in response to revisions to ISO standards*. Accordingly, the network that exists among our group companies is being reinforced to facilitate the sharing of useful know-how. In keeping with its 3-year plan, the Group intends to establish a governance system under which each group company can operate its own management system autonomously. ※ Environment: ISO 14001; 2015      ※ Occupational safety and health: ISO 45001 (pending) rog leioe
Purpose of the new system
(1) To encourage REMATEC Group companies to pursue autonomous initiatives and let them share know-how to enhance the overall level of the Group. (2) To align the REMATEC Group as a whole with new international standards so as to prevent occupational and environmental accidents. In particular, to add tasks designed to address risks. (3) To train the core staff in each REMATEC Group company (enhance their skills by holding committee meetings, liaison meetings, and cross audits to continuously improve each company's system).
Advantages of the new system
★Clarification of where responsibilities lie The integrated system reinforces Group-wide governance through independent management systems tailored to each group company. ★Reduced business risks The system analyzes the business risks faced by each group company and manages the activities that they carry out to eliminate factors that hinder business continuity. ★Enhanced operational efficiency To enhance operational efficiency mainly with respect to environmental and safety management, overlapping processes are eliminated through integration in accordance with the revised ISO standards. ■ Introduction of a 3-year plan aimed at having group companies operate their management systems autonomously In accordance with this 3-year plan, the REMATEC Group is developing management systems that will encourage partnerships and autonomous initiatives among its member companies. 2017 2018 Each group company to develop its own management system in accordance with ISO 14001: 2015 (overall management to be carried out under the Group-wide integrated system) After the transition from OSHMS to OHSAS . The goal is to have each group company achieve 18001 (Occupational Safety and Health i autonomous management in terms of the Management System), operations to be ; environment, occupational safety, and health. integrated with EMS (ISO 14001) in accordance with ISO 45001. System (EMS) → Two different management systems were operated in the Osaka and Kyushu areas → This system was operated by REMATEC and REMATEC KYUSHU ■ New management system To be established in 2018 Environmental Management System (EMS) → Operated by five group companies and the integrated system (OSHMS) and OHSAS
※The data for 2013 was obtained from REMATEC Corporation sites, while the figures for 2014 onward have been obtained since the transition s RF  shipmentS （Target organizations: REMATEC Corporation and REMATEC KYUSHU Corporation AT REMATEC KYUSHU, production has remained stable since full-scale operation was resumed there in December 2014 and its shipment target was exceeded. REMATEC was greatly affected by equipment problems, which resulted in a decrease in shipments. With a view to meeting our three-year targets, we aim to maintain stable production and to gradually increase it by improving routine inspections and maintenance -�-REMATEC ■-REMATEC KYUSHU
Recycling rate (%)
Target organizations: REMATEC Corporation and REMATEC KYUSHU Corporation
REMATEC experienced a significant drop in the recycling rate as a result of increased residue discharges being caused by a fall in production due to equipment problems. We aim to make improvements by increasing the recycling rate while securing a stable supply in RF production. REMATEC KYUSHU delivered the same results as in other years. but will continue working to improve the recycling rate. ■ Equipment problems reduce the recycling rate. Increasing the recycling rate while improving RF production ■ REMATEC ■ REMATEC KYUSHU ● Overall average
Severity rate & frequency rate (Tagetoranics:REMATECCorpor
The number of accidents is decreasing, but we will continue to seek their causes and take preventative measures to bring it closer to zero. REMATEC and REMATEC KYUSHU both experienced some accidents caused by careless mistakes. Additionally, an employee of a secondary subcontractor was involved in a chemical injury accident at REMATEC R&D (see P12). To eliminate accidents completely, the REMATEC Group will work as a whole to share accident case studies and implement prevention initiatives to promote safety ation, REMATEC KYUSHU Corporation, REMATEC TOHOKU Corporation, and REMATEC R&D Corporation %Data collection period: January to December of each yea ■ Aiming to achieve zero accidents by enhancing risk management
RF power consumption (Targetorganizations:REMATEC Corporation and REMATEC KYUSHU Corporation
■■ Equipment installation results in increased power consumption: Achieving gradual reductions while maintai -�-REMATEC - ■- REMATEC KYUSHU REMATEC experienced a significant increase in power consumption following the installation of deodorizing equipment. REMATEC KYUSHU experienced an increase in specific power consumption since the adoption of 24-hour operations and the introduction of a new plant and new equipment lead to greater overall power consumption (a great deal of power was consumed during the restoration work carried out following the 2013 fire, and the RF production period was four months, which inevitably led to lower production, thereby increasing specific power consumption). REMATEC KYUSHU's power consumption is high compared to REMATEC, so challenges remain. Both companies will work to achieve gradual reduction
Fuel consumption and fuel efficiency Tsrgetorganization:RTT Corporation
■■ Osaka Branch     ■ Kyushu Branch ■■ Post-accident sales recovery leads to increased fuel consumption: Promoting eco-driving to improve fuel efficiency The fire that struck REMATEC KYUSHU in 2013 reduced the number of orders received by the Kyushu office in 2014. but sales efforts led to a recovery in 2015. Consequently, fuel consumption increased. From 2016, the Industrial Waste Department will be transferred to REMATEC KYUSHU, and this is expected to reduce fuel consumption. Over the next three years, we will use digital tachographs to promote eco- driving and safe driving, while also aiming to improve fuel efficiency. %The Tohoku Branch will be closed from FY 2016
Solar power generation  (Tagetorganizations: Kumamoto power plant, Kagoshima power plant, and Okayama power plant
■ Exceeding our planned targets through data analysis and prompt responses in the field Three solar power plants had entered operation by the end of March 2015. The power generation of these plants was affected by them not being able to achieve their planned targets in months with bad weather and solar panels needing to be replaced after suffering damage in typhoons, but all three of them exceeded their planned targets for the year with help from their local partners. Solar panel deterioration is also expected to have an impact on power generation. We will work towards meeting our profit plan by pursuing lean and efficient power generation through the utilization of data from the string monitoring system, as well as through the strict management of maintenance costs. t went into operation on August 22, 2014, the Kagoshima power plant on November 27, 2014, and the Okayama ※The Kumamoto power plant w ■ Equipment problems affect shipments: Ensuring stable production by improving routine maintenance I Severity rate: Indicates an accident's severity based on the number of workdays lost per man-hour. #: Frequency rate: Indicates the frequency of accidents based on the number of casualties resulting from industrial accidents per man-hoc -�-REMATEC e-rematec kyushu → REMATEC TOHOKU ● REMATEC R&D ingeed leloo
Achievements in FY 2015

Status
o
being severely injured when he was exposed to chemicals contained in a pipe that was being dismantled. We deeply regret that our failure to provide the original contractors with a written explassion of the dangers that workers would be expressed to upon dismanting the pipe dust to the researce of a hazardous substance and appropriate to prevent

Three-year Targets (FY 2016 to FY 2018)
■REMATEC

■REMATEC KYUSHU

Plans for implementation items эллген  13 FY 2016 FY 2017 FY 2018 niew power consumption at the plant s needs power consumption at the plant.
Reduce power through intermittent operation of a tank agitator
Replace equipment that have high power consumption ■ Secure a stable RF tasi supply by ensuring that repair activities, such as equipment inspacions, are conducted Ensure monitoring of the taric's internal properses (sel, pressure, tampassure, etc.) to provint abnormal superses FY 2016 FY 2017 FY 2018 Monitor quality of water from rainwater treatment equipment (pH, transparency) Plans for implementation items FY 2016 FY 2018 FY 2017 ■ She patrols Workers are accompanied by a colleague when performing unsteady work or other hazardous tasks
. Activities to ensure that lessons from past accidents/deasters are not forgot that such lessons are passed on to the next generation ■RTT

■REMATEC R&D

■REMATEC TOHOKU
%Data is being collected on electricity consumed in business activities ■ Zero rejection of our contracted waste insure pretreatment of our contracted waster ■ Contribute to recycling at the cement plant      Propose new treatment methods, etc. ■ Participate in cleanup activities for the streets around the plant (pick up litter)
   Cleanup activities for the riverbanks Plans for implementation items FY 2016 FY 2017 FY 2018 ■■Take measures to prevent human error: conduct hazard prediction activities and check if rules are being followed
■ Safety measures when changing equipment/traffic flow: propose improvements, stc. ■Perform hazard predictions before starting work Establish a system of pointing at items and calling out their status. ■ Receive professional education ■ Double-check basic matters ■Meet individual health targets (develop and implement goals individually) Receive regular health checks

■REMATEC TOHOKU
Plans for iniglementation items FY 2016 FY 2018 FY 2017 Regularly check and implement measures on water entering rivers after rain iona     Consider and implement measures t Emergency response drills (leak drills)
 Prevent dust and suppress noise/vibrations
  reduce fuel consumption for heavy machinery ■ Create a management procedure for legal inspections Conduct operations and verifications Request regular communication from the contractor Severity rate/frequency rate: 0% ■REMATEC
Our Eco-First commitment: Progress
In accordance with our social responsibility as a company that recycles industrial waste, we are committed to complying fully with all laws and regulations, as well as undertaking the initiatives described below in order to proactively contribute to society through activities designed to continuously reduce the environmental loads. In addition to submitting reports to the Ministry of the Environment, we will monitor the progress of our initiatives and periodically announce their outcomes.
Commitment 1
Initiatives for forging a recycling-oriented society % Applicable to REMATEC Corporation and REMATEC KYUSHU Corporation ■ Consistently recycle 97% or more of the industrial waste we accept from waste generators. ■ Advance our research into the production of fuel by recycling as many kinds of industrial waste as possible to realize a recycling- oriented society. ■ Carry out initiatives to forge a recycling-oriented society.
Commitment 2
Initiatives for curbing global warming % Applicable to REMATEC Corporation and REMATEC KYUSHU Corporation ◆Year-on-year rate RF shipments Up 18% Reduction of greenhouse gas emissions Up 18%
Progress in 2015
●Recycling rates REMATEC 81.8% REMATEC KYUSHU We were unable to achieve the target recycling rate of 97% due to equipment problems and other issues. Going forward, we will promote more stable operations by improving our equipment and conducting research and development to increase the types of waste we can accept.
| Progress in 2015
This fiscal year, REMATEC and REMATEC KYUSHU shipped 97,400 tons of RF, a year-on-year increase of 14,854 tons (18%). This rise in RF shipments allowed us to further reduce our greenhouse gas emissions by 24,509 t-CO 1 compared to the previous fiscal year. As part of the three-year plan that we launched in FY 2016, we aim to RF shipments
Commitment 3
Initiatives for making effective use of waste that contaminates soil and water and reducing the environmental burden % Applicable to REMATEC Corporation, REMATEC KYUSHU Corporation, REMATEC TOHOKU Corporation, and REMATEC R&D Corporation
●Seminar on biogas power generation
In June 2016, we participated in Biomass Expo 2016 at Tokyo Big Sight, where we took the opportunity to introduce our biogas business support service. During the Biomass Expo Forum, we gave a seminar on our biogas business. Aimed at providing an explanation of biogas to those interested in this new energy source, the seminar attracted about 200 participants and received very favorable responses.
| Progress in 2015
●Our biogas power generation activities
We built a biogas power plant that uses food and other waste in 2014, and began generating power there in 2015. The power plant produces 817,110 kWh of electricity a year. This output is sufficient to cover the annual electricity consumption of about 154 ordinary households (where the average annual electricity consumption of an ordinary household is about 5,315 kWh). As a new initiative, we also collaborated with Kagoshima University and Eidensha Co., Ltd. to conduct a verification test (under contract) of a biogasification (methane fermentation) system for swine manure, which is difficult to convert into biogas. We will continue accumulating knowledge, gaining experience, and developing technologies to help promote the local consumption of locally produced energy.
Commitment 4
Initiatives for raising environmental awareness both inside and outside our group ※Applicable to REMATEC Corporation, REMATEC KYUSHU Corporation, REMATEC TOHOKU Corporation, and REMATEC R&D Corporation ■ Develop human resources that can address society's environmental challenges by organizing our own environmental awareness initiatives, including REMATEC Future Academy. ■ Plan and organize guided tours of our plants to increase the public's understanding of waste recycling.
【Plant tours for overseas visitors】
We warmly welcome overseas visitors to our plants. On July 13, 2016, a group of Chinese environmental entrepreneurs visited our Sakai SC plant as part of their environmental technology training program aimed at developing China's environmental industry and improving its environment. On behalf of an organization supporting students of the Thai- Nichi Institute of Technology, we conducted a tour of Zone 7-3 of the Sakai plant on July 28, 2016, for two of the institute's students. On   j August 3, 2016, trainees from India, the Philippines, Jordan, Palestine, Saint Vincent, and Brazil visited our Osaka Plant as part of a JICA training program called "Administrative Efforts to Promote the Use of Energy-saving Technology and Engineers," which is run by the Pacific Resource Exchange Center (PREX).
Activities in FY 2016
【In-house education】
In July 2015, we conducted training and tests for ISO 14001:2015 internal auditors as part of our in-house education efforts. We also held workshops that are mainly intended for newly appointed internal auditors. At these workshops, attendees learned about our revised environmental management system and the environmental efforts and approaches of our group companies. In addition, each of our group companies and departments holds a monthly environment, safety, and health committee meeting to address internal and external environmental challenges
【Education for external parties】
On July 16, 2016, 10 students who are members of an environmental activity club called Ecolosuke at Osaka Prefecture University visited our biogas power plant MF Power-1 and our Osaka RF plant. The students, who are greatly interested in environmental issues, asked us high-level questions about renewable energy and recycling technology. As part of our environmental education efforts, we are happy to conduct plant tours for students and working adults in order to help young people develop an interest in environmental issues. Jani9-055
Activities of the Eco-First Promotion Council
Discussion forum with university students
(Forumname :Kankyo Ojisan Gojyozetsu Kai)
Ten Eco-First companies in the Kansai region and 82 university students attended a discussion forum (Kankyo Oj san Gojyozetsu Kai) at Osaka ATC Green Eco Plaza on January 9, 2016. We exchanged candid opinions with the students about balancing corporate and environmental activities. Both the students and the company representatives renewed their commitment to environmental conservation by setting new goals. Of the 40 Eco-First companies certified by the Ministry of the Environment as being companies working to protect the environment, 10 companies headquartered in the Kansai region met up on September 3, 2016, to voluntarily catch non-native fish living in Lake Biwa. In this activity, a total of 247 people—including nine ministry officials and 11 REMATEC Group employees and family members—competed to catch non- native fish in Otsu City, Shiga Prefecture. They caught a total of 567 non- native fish, such as bluegill and black bass, with a combined weight of 17 kg. The fish caught in these activities were processed into fish meal at welfare facilities for the disabled and used for compost and other purposes. This was the fourth volunteer activity where Eco-First companies have come together to produce outstanding results. We aim to continue our efforts to protect the global environment and despen the links among Eco-First companies. ship 98,000 tons of RF (as the total shipments for the two companies) in FY 2016 and to increase our RF shipments by 5% by FY 2019. To achieve this warming. efforts to curb global goal, we will continue to actively promote our
Foundation of Re:CS Exploiting our three strengths to produce advanced resource recycling infrastructure Three Kansai-based recycling companies—Marusan, Kansai Saisigen Network, and REMATEC Holdings—integrated their sales operations to found Re:CS CO.,LTD. with the aim of helping to develop a new venous industry network and establish sustainable resource recycling infrastructure (March 2016). The new company is expanding its business network by forming partnerships with reliable waste disposal operators and establishing an extensive distribution system linked to cement and steel companies. Given this, it can now meet the needs of both new and existing customers, and provide them with optimal services through its outstanding solution proposals. By leveraging the various waste recycling facilities and know-how of the three companies, Re:CS manages the collection, transportation, and disposal of a variety of types of waste in an integrated manner. The company aims to provide a comprehensive resource recycling service by proposing innovative disposal methods, including less costly methods and methods of creating valuable materials from waste. In addition, Re:CS has established the Re:CS Group, which consists of the Idex Group, Hamada Co., Ltd., Kuninaka Environmental Development Co., Ltd., and the Kotoku Group. Based on a relationship of trust with our customers that is stronger than ever, this group will provide optimal disposal solutions, establish a solid alliance network, and create resource recycling infrastructure. Re:CS's strength: A comprehensive resource recycling service Re:CS's unique attributes Recycling management The Re:CS Group provides a comprehensive service for the integrated collection, transporta- tion, and disposal of all types of waste produced by lour customers. With its extensive corporate work, the group can produce flexible, wide-ranging proposals, including on the use of various disposal technologies, creating valuable materials from waste, and recycling waste Cost management The Re:CS Group discioses information on appropriate waste disposal and proposes wative disposal methods, such as creating valuable materials from waste and entering into bulk disposal contracts to reduce disposal costs Risk management Re:CS was established by three companies with strong bonds to provide a reliable waste disposal service. The group ensures not only worksite  safety,  but  also  thorough compliance, including waste traceability. The REMATEC Group will continue making progress and taking up new challenges as we look to the future with a concern for the environment that has remained unchanged since our foundation. Overseas business Two major projects tackling environmental problems in Asia Having pursued innovation in its efforts to overcome environmental challenges since its foundation, the REMATEC Group is carrying out several projects that leverage the know-how it has acquired in Japan to tackle environmental problems that have arisen in Southeast Asian countries as their economies have grown. One of these projects is to establish a proper waste disposal system in Thailand. The country currently buries municipal solid waste (MSW) in landfills without sorting, so it urgently needs to establish an MSW disposal system as it suffers from methane gas emissions, contamination of the surrounding environment, and fires at landfill sites. We have constructed plants that can classify MSW, recycle it into an alternative fuel to coal, and ferment waste to produce methane, thereby helping the country to reduce greenhouse gas emissions and promote energy saving (see the figure below). In Malaysia, we have used empty fruit bunches (EFB), which used to be discarded after the extraction of oil from palm fruit, to solve environmental problems. Such problems include the destruction of nature resulting from the development of plantations by the palm oil industry and water pollution caused by the waste discharged from oil mills. We successfully developed power generation fuel using EFB in collaboration with Taiheiyo Cement. Going forward, we will continue to support eco-friendly renewable energy businesses to reduce the environmental loads and protect the environment by making effective use of the unused waste biomass discharged from palm oil mills, as well as providing a stable supply of biomass fuel to the Japanese market. элитвен REMATEC CROUP REMATEC
United" to lead local communities to a
brighter future
The REMATEC Group mobilizes the strengths and uniqueness of each of its group companies under the banner of “REMATEC United” in order to address environment- related social challenges in line with its corporate mission. Recovery from marine accidents The REMATEC Group collects and treats oil and other waste that is spilled in marine accidents such as cargo vessels running aground. It provides numerous related consulting senices, as well. Overseas business operations (e.g., environmental solutions) The REMATEC Group is engaged in a wide range of projects, including a joint venture with a Thai company to address urban waste problems by leveraging the know-how it has gained in Japan REMATEC ■Organization chart Holdings Corporation
Recovery and reconstruction assistance As it demonstrated in the aftermath of the Great East Japan Earthquake and the recent landslide disaster.
in Hiroshima, the REMATEC Group mobilizes its collective strength t tion activities to protect the lives of affected community members and the local environment. Toward this end, the Group has developed an integrated treatment scheme to handle everything from transportation, analysis and precision sortation, analysis Cleanup of illegal dumping sites The REMATEC Group removes the obstacles that illegal dumping causes by recycling the waste as fuel or treating it by incineration, for example. The Group also provides consulting services to facilitate the development of cleanup plans and the design of installations for dumping sites. 0 - 0 Waste recycling (RF production) Industrial waste from neighboring plants is recycled into reclaimed fuel (RF) for supply to REMATEC Group has been providing technological assistance for this in Asia. Solar power generation To reduce environmental loads by cutting CO: emissions and fossil tuel consumption, the generation projects in Kagoshima, Okayama, and Biogas power generation Using organic waste as a raw material, biogas is collected through oung organic video to generate electricity or heat. Residue from
the fermentation process is returned to farms (test sprinkling is underway) to create the material cycle. Resource recycling support 
The REMATEC Group offers a comprehensive resource recycling service that
is tailored to each client by offering a diverse range of options that leverage the unique strengths of its various group companies. Maintenance The REMATEC Group caters to a diverse range of needs with the know-how
it has gained from over 20 years’ worth of experience in the maintenance of tanks, pits, and other equipment. We offer a comprehensive service that leverages the best recycling and treatment methods for used clean.
water and other types of waste. Network and logistics Prioritizing  safety  and  quality,  the  REMATEC  Group  operates  and (RF), and other materials. 2016 CSR Report 19 18 REMATEC GROUP R&D and engineering The REMATEC Group conducts R&D by mobilizing its collective and other countries face. To this end, the Group also accepts visibos for on-site tours and organizes other forms of personnel exchanges.
REMATEC Corporation
● Industrial waste treatment ●Reclaimed fuel (RF) production ● Environmental restoration To help protect the global environment, we treat and recycle waste appropriately in pursuit of zero emissions. Our company is implementing initiatives to tackle environment-related social issues through the recycling of industrial waste. In 2015, we transitioned to the 2015 version of ISO 14001, which requires related rules to be revised for implementation from April 2016. Clarification of our goals and objectives enabled us to clearly define our external and internal challenges, as well as those responsibilities that require leadership in advancing our environmental management. We will continue to provide industrial waste recycling services in accordance with these standards so as to make further social contributions in the Commitment of upper management best interests of our clients. In the 21st century, humankind is faced with the need to create a zero-waste society. We will work tirelessly to develop new businesses designed to tackle the challenges ahead while seeking support from our fellow group companies. TOPICS
Preventing heatstroke
We encourage our employees to take extra breaks so that they do not push themselves too hard during the unloading and sampling that needs to be performed throughout the day. Unfortunately, they still aren't taking enough breaks. Given this, we are conducting an awareness campaign to encourage them to take early breaks by measuring a heat index called the WBGT for use as a reference value in visualizing the hazard level so that the appropriate timing for breaks can be quickly determined.
Preventing leakage
Our hazardous material facilities have been repaired repeatedly since 1993, and a deterioration in the performance of the pumps has led us to overhaul the facilities. In 2016, three units were repaired after leakage from the sealing was discovered. In addition, a circulation system was introduced in the on-site effluent tank to prevent clogging, and the monitoring system was upgraded so that the load exerted on receptacles could be checked for excessive pressure. from Stakeholder comments Our community-based company is now leading the way in the construction of a new social system Akihito Katabuchi Chairperson, Osaka Industrial Waste Association President, Kotoku Cleaner Corporation The business environment for industrial waste treatment in Japan is expected to be bleak. Depopulation will lead to an absolute decline in the amount of waste that is generated, companies are moving offshore, and companies from other industries are entering this market. The proper treatment of waste using the business model as it stands now will not lead to sizeable growth in the industry. The REMATEC Group has been leading the industry by adhering to its management philosophy. With REMATEC Holdings at their core, all of the group companies have been fulfilling their corporate roles and social responsibilities to usher in the society that we envision. Their sincere attitude towards resource recycling, global warming, and other environment-related social challenges, as well as their efforts to address them, are laudable. Important clues for how the industrial waste treatment industry might overcome its challenges may be found temporal The key is to enjoy evolving from Employee comments Hisashi Sakaguchi Production Department Our top priority is to retain our clients' trust by providing a stable supply of high-quality reclaimed fuel. To ensure this, we need to reliably undertake the following four measures: (1) create synergy by having all of our employees work together to ensure smooth cooperation with affiliated companies; (2) improve our biomass power generation equipment and operational management to boost efficiency; (3) implement health and safety promotion activities thoroughly without compromise; and (4) ensure that we complete the transition of our environmental conservation activities to align them with ISO 14001:2015. We will strive to play a constructive role in sustainable social development by responding to social needs for renewable energy while seeking to create harmony between local communities and the natural environment. It has been almost a decade since I joined this company. When I first became an assistant manager, I struggled at times in adapting to my new role in providing guidance to my subordinates. However, I try to keep in mind the president's favorite key phrase; namely, to "enjoy evolving." Waste treatment involves many low-tech tasks and the effort required to ensure safe operations is intangible. Nevertheless, given that equipment is operated by people, my subordinates and I are committed to enhancing our individual potential through proper management and guidance in accordance with the targets set for upgrading our skills and knowledge. We will try to win trust by carrying out waste treatment appropriately and to gain a good reputation among our stakeholders. Assistant Manager, Yoshiyuki Yabu President in the activities conducted by the REMATEC Group. Ever since it was known as the Kinki Environmental Industry, my company has also been working hard by regarding the REMATEC Group as a role model and a fellow resident of Kishiwada City. As the industrial waste treatment industry is being forced to transform itself into a general environmental industry, we look forward to the global contribution that the REMATEC Group will make in leading the creation of a new social system that will take root in each community as infrastructure designed to fulfill multiple roles. Enhance the potential of individuals to retain trust in our company
REMATEC KYUSHU
Corporation
● Industrial waste treatment ● Reclaimed fuel (RF) production ● Environmental restoration ● Equipment maintenance Reclaimed fuel production plant with equipment as safe as that used in chemical plants Our company's business operations are led by the recycling of industrial waste to produce reclaimed fuel (RF) for cement plants. Once industrial waste has been shipped in, our specialized laboratory routinely analyzes all of the waste components and then conducts mixture testing to assess factors such as the pH level and temperature in order to identify any risks associated with chemical reactions and heat generation. We also diligently study the mixture process used to produce RF, with the aim of ensuring that it has sufficiently better quality, more reliable production, and calorific value from Employee comments Taking routine work seriously to prevent another accident Yoji Fujita Production Section, Production Department for it to be used as a fuel to replace coal. The factory utilization rate has improved since the reconstruction of the plant in December 2013, and this has led to a steady increase in the amount of delivered products. We will continue to prioritize safety by keeping in mind our responsibility to ensure safety, peace of mind, and confidence. The key is to evolve and demonstrate resilience Shinichiro Yano President Our basic management policy is to maximize the satisfaction of all our stakeholders. The provision of appropriate and stable waste treatment as requested by the companies that entrust us with their waste and the pursuit of coexistence and co-prosperity with local communities—these form the pillars of our business operations. All of our employees work tirelessly to upgrade their skills so that they can take full advantage of our state-of-the-art equipment and contribute to improving the global environment. Going forward, we aim to evolve our company according to the needs of the time and gain greater resilience so that we can respond flexibly to any situation and help build a sustainable society. Looking back at the past 10 years of my time with REMATEC KYUSHU, I can recall many fulfilling days but also an accident that shook the very foundations of our company. For one year after the accident, everyone in the Production Section worked day and night to reconstruct the plant so that we could resume operations as soon as possible. Thanks to the kind support of many people, full operations were resumed in 2014. The plant's operations have become much safer for us workers thanks to the introduction of comprehensive inspections for delivered waste and a clear division of work in our round-the-clock operations. Lest we lose this precious workplace that we have been given, we will spare no effort in conducting risk predictions before each day's work and take care in our routine work. In this way, we are committed to becoming an accident-free company that is trusted by all of its stakeholders due to its safe operations. TOPICS
Enhanced system for the reliable treatment of
difficult-to-handle waste
In FY 2015, REMATEC KYUSHU took measures to ensure the stable operation of a new plant that came online in December 2014, as well as to ensure the reliable treatment of difficult-to-handle waste. An additional tank with a capacity of 30 m ² was installed at the plant exclusively for difficult-to- handle waste to ensure reliable treatment. Safety and appropriate treatment are ensured by conducting thorough inspections of the concentration, pH level, pressure, and other parameters of reactive substances before the waste is accepted. Thanks to this new reliable treatment system, nearly 100 tons of difficult-to-handle waste can be accepted every month to cater for the needs of clients who would otherwise have trouble disposing of it. We will continue to work closely with waste generators and other stakeholders to proactively face up to various environmental challenges.
Initiatives for achieving the goals of
our 3-year safety plan
This fiscal year is the first of our 3-year safety plan that has as its goals an accident frequency rate of 0% and a severity rate of 0%. To realize these goals, we will prioritize the following initiatives: (1) Fully identify particularly dangerous tasks, such as unsteady operations, and provide workers with thorough instructions to avoid unsafe behavior by accompanying colleagues and on-site supervision. (2) Regularly conduct rigorous patrols and make improvements to address malfunctions and deviations from the 4S principles throughout the entire plant. (3) Organize activities to pass on to the next generation the experience and lessons learned from past accidents and disasters so that they are not forgotten (e.g., preparation of a REMATEC Remembrance Calendar marked with the date of the past accident). By following these three priorities, we will create a safe working environment by eliminating unsafe behavior and conditions from the plant. from Stakeholder comments A company thriving alongside the local community of Miyakobaru jew lo juj
ed woo  dno. Yuuji Ooto Director General, Miyakomatsu Promotion Council The Miyakomatsu Promotion Council that was established last March has four working groups: the Hometown Group, which endeavors to pass on local history and culture; the Child-raising Group, which aims to ensure the sound development of pupils and students; the Environment Group, which protects the natural environment and prevents pollution; and the Bridging Group, which promotes exchanges and contact with local residents. Our steady efforts are successfully rebuilding a sense of affinity and local bonds, albeit gradually. These activities are supported by the council officers and other volunteers, subsidies from Usuki City, donations from REMATEC KYUSHU and other sponsoring companies, and local contributions. In our largest summer event, the Hometown Bon Festival, REMATEC KYUSHU kindly sets up a barbecue stand for over 350 participants. Employees of this company take the lead in making preparations, serving, and cleaning. Our small district hosts many visitors thanks to the company's generous help. In April, many REMATEC KYUSHU employees join our walking event at Tonosama Road, while in June, employees from their Community Office participate in the cleanup campaign organized by our Environment Group. Mr. Yano, the president of REMATEC KYUSHU, participates in our extended meetings and general meetings. We appreciate such moral and material support. At each of the quarterly consultative meetings held on environmental measures in Miyakomatsu, I sense that there is a growing mutual trust between community members and REMATEC KYUSHU as the company reports its sincere efforts to prevent pollution and to ensure safe operations. I should also mention that they maintain flowerbeds and clean up trash alongside national roads in the area, and they organize traffic safety awareness activities early in the morning. The company is clearly establishing a social presence as a good community member. I sincerely hope for the continued growth of REMATEC KYUSHU, as a leading environmental company that embodies the principle of coexistence and co-prosperity with the local community.
REMATEC TOHOKU
Corporation
● Contracting work related to resource recycling ●Coordination of waste recycling ● Business related to local renewable energy system construction Working with stakeholders toward the co-creation of new businesses and values This year marks the fifth anniversary of the Great East Japan Earthquake and the third year since the REMATEC Group was united under REMATEC Holdings. The Kesen region of Iwate Prefecture in which we are based is still only halfway to full reconstruction. At hill development construction sites, we are processing removed stumps (tree roots) and earth to prepare a raw fuel material for use at cement plants, while always keeping in mind our commitment to the principle of "safety first." To overcome the challenges faced by our clients in Tohoku, we actively provide waste recycling coordination services, Commitment of upper management including proposals on how best to recycle waste or otherwise turn it into valuable resources. We continue to explore the possibility of recycling untapped local resources into energy sources that will serve as a driving force for reviving the local communities. Leveraging the REMATEC Group's wealth of experience and know-how, all of our employees are united in working together with our stakeholders toward the co-creation of new businesses and values. TOPICS
Proposals for resource recycling
(1) Waste recycling coordination service While taking into account the characteristics of each area, we propose new methods for recycling waste generated from activities unrelated to reconstruction in the spirit of satisfying all three parties: the buyer, the seller, and society.
Examples
■Recycling waste glycerin into fuel ⇒ Used as boiler fuel at asphalt production plants ■ Recycling bentonite sludge into a raw material for cement ⇒ Acceptance of sludge became possible through the use of our proprietary auxiliary equipment (2) Ofunato Project for the development of a local renewable energy system that links the sea, mountains, and people We continue to advance this project, which was selected by the Reconstruction Agency in fiscal 2014 as a leading model for projects to reconstruct disaster-affected Tohoku.
Examples of FY 2015 activities
■ Experimental collection of garbage from relief housing ⇒ Used as a raw material for demonstrating methane fermentation ■ Evaluation of resource crop growth by applying liquid fertilizer (digestive juice) made in an experiment last fiscal year ⇒ Had an immediate effect and demonstrated better growth than chemical fertilizer from Stakeholder comments
Working together to leave
a proud corporate legacy Koshiro Hidaka Plant Manager Ofunato Plant, Taiheiyo Cement Corporation With five and half years having passed since the Great East Japan Earthquake, the overall reconstruction of Ofunato City is becoming increasingly visible. This progress owes a lot to the debris removal carried out by REMATEC TOHOKU in the immediate aftermath of the earthquake. Given this, I would like to take this opportunity to express our gratitude. When the debris treatment was underway in October 2013, REMATEC Holdings began testing biogas power generation in Ofunato City with the aim of building a zero-waste society and promoting local sources of energy for local consumption. Successful testing is already in sight. Moreover, to assist our plan to conduct biomass power generation at our plant, REMATEC is intensifying its effort through a project to develop new fuel in Southeast Asia. The fate of our power generation project will depend greatly on the outcome of REMATEC's development project. Most likely, the project still faces numerous hemiojuj
ed woo dnou challenges on the road to devising a viable solution. I am convinced, though, that REMATEC will successfully achieve this by mobilizing its well-rounded capacity for technological development. With their outstanding technological capabilities, information collecting abilities, adaptability, and human resources, REMATEC TOHOKU has been of great help in the development of our plant. In addition to the recycling operations that our plant entrusts to REMATEC TOHOKU, we hope to explore new business opportunities with them and to work together to leave a proud legacy for future generations. from Employee comments Serving as a reliable partner to local communities in their reconstruction efforts Ayako Saito Business Development Department Established after the REMATEC Group was united under REMATEC Holdings, REMATEC TOHOKU is still a relatively young company. We operate in accordance with the Group's policy of prioritizing safety above all else, but accidents resulting in property damage do happen. In light of this, we seek to ensure that all routine tasks are conducted properly as a matter of course. In addition, having obtained ISO 14001 certification in the latter half of fiscal 2016, we have begun working to reduce the environmental loads of our business operations. We are continuing to lay the foundations for us to be recognized as an indispensable partner by local communities in their reconstruction efforts, as well as by other major stakeholders, such as the Ofunato Plant of Taiheiyo Cement. Laying the foundations for our company to serve as an indispensable member of the community Tomokazu Nomura Director Having completed the treatment of disaster waste from the Great East Japan Earthquake, REMATEC TOHOKU continues to support local communities in the recycling of resources by taking full advantage of each community's unique characteristics. Assigned to the Desalination Group, I have been supporting the Sales Department since the last fiscal year. My first experience in dealing with industrial waste surprised me in that so many different kinds of waste can be recycled as fuel or raw materials. This discovery really broadened my knowledge. Five years on from the earthquake, recovery and reconstruction efforts are still ongoing. We employees aspire to serve the disaster-affected communities as a company that they can turn to whenever they need help.
REMATEC R&D
Corporation
●Overseas operations ● Development of new businesses and technologies Vigorously pursuing business development in Japan and beyond to lead the post-COP21 world REMATEC R&D Corporation offers solutions that meet the world's increasingly diverse and complex environmental challenges through the provision of consulting services and commercially viable innovations by implementing the technologies and know-how that the REMATEC Group has cultivated around the world. As an earthquake-prone country, Japan is now being noticeably affected by climate change associated with global warming. The series of disasters that have struck the country in recent years (such as the Great East Japan Earthquake and landslides in Hiroshima) have caused enormous damage. In response to these disasters, we have been offering solutions based on our core technologies, which are underpinned by our planning and development capabilities, our quick on-site responses, and our local knowledge and networks. With two ongoing development projects (see next page) serving as the pillars of our work, we are also engaged in a project related to fisheries, which is actually the industry in which our group got its start. By combining social considerations concerning fish consumption and fisheries with our traditional strengths in scientific and technical thinking, we are striving to usher in a low-carbon society. Commitment of upper management Overcoming environmental challenges through open innovation
Mitsuyuki Nishihara President
In December 2015, ambitious goals for the realization of a low- carbon society were adopted at the COP21 UN Climate Change Conference held in Paris, along with a requirement for the targets to be reviewed every five years. In the preceding month, we were visited by Mr. Hans-Josef Fell, who drafted the German renewable energy bill. During this exchange, he expressed his great appreciation for our resource recycling business and other activities. We are joining forces with our stakeholders to engage in open innovation with the aim of responding expeditiously to social needs and tackling environmental challenges. Examples of these efforts include the development of battery materials for storing power generated from methane fermentation, as well as the development of aggregates for supplying nutrients that make effective use of marine resources and help to protect the environment. TOPICS
Working with partner companies to commercialize
the REMATEC Group’s proprietary technologies
(1) Pursuit of an energy-saving project based on the production and effective use of an alternative fuel to coal (Thailand) Through a collaboration with Thai municipalities and local companies, a plant for recycling urban waste into fuel is to be constructed. This plant will make use of a combination of the REMATEC Group's recycling technologies, including waste sorting, the recycling of waste into biogas and the development of an alternative fuel to coal. The plant aims to achieve both proper waste treatment and energy saving through energy recovery. With a feasibility study having been completed in FY 2015, preparations for the construction of a demonstration plant are underway. We plan to construct the plant in FY 2017 so that fuel production for cement plants and biogas power generation using urban waste (200 t/day) generated in local municipalities can be demonstrated over a four-year period. This project has been commissioned by NEDO as an international demonstration of technologies and systems designed to facilitate efficient energy consumption. from Stakeholder comments Professor In Osaka Bay, our research group is conducting a study sponsored by the Japan Technology and Science Agency with the aim of establishing sustainable fisheries and a new fish consumption culture. The objective of this study is to conduct a comprehensive evaluation of issues related to the fishery environment, fish catches, distribution, and consumption and then identify potential improvements with stakeholders of all generations. The core technology employed here is the creation of fishing grounds with aggregates made using fish bones to supply nutrients. Improving the ocean environment using ocean byproducts is quite an important concept. We look forward to working together with REMATEC R&D on this research project as we face up to this important task. (2) Development of low-cost battery materials extracted from waste Renewable energy is a promising way to achieve a low-carbon society, but one major obstacle that needs to be overcome is how to adjust demand and supply for power so as to cover the gap between generated power and peak consumption. The development of cheap batteries could potentially offer a solution to this problem. To reduce the costs involved in making batteries, our company is working to develop a commercially viable integrated process for recovering indispensable rare metals from waste to produce battery materials. In FY 2015, we developed a process for reducing costs, and we are now evaluating the process at a pilot plant before beginning test production. (3) Sharing our technologies across borders We welcome many different visitors to our facilities so that a wider spectrum of society can gain an understanding of our Group's initiatives. In FY 2015, our facilities were studied by a total of 159 visitors, including members of Germany' Green Party, university students, and members of civic groups. In FY 2016, we plan to accept interns from Thailand as a part of an active effort to share our technologies predominantly in Asia. from Employee comments Roles expected of R&D staff Kazuhiro Tsuneyoshi Engineering Group, Engineering Department REMATEC R&D Corporation mainly consists of three groups that fulfill the following roles: planning, R&D, and engineering. I belong to the Engineering Group, which is responsible for the instrumentation of processes. Presently, I am involved in carrying out testing at a pilot plant for producing battery materials from waste. There are still many things that I need to learn, such as the performance and functions required for each device. In addition, there are lots of obstacles that we need to overcome to transform laboratory data into an actual device. It is hard work, but I aim to live up to expectations by steadily learning and mastering each task. hew logue 
ed woo dn
RTT Corporation
● Industrial waste collection and transportation ● General cargo transportation ●Equipment cleaning Providing safe, high-quality transportation services through the use of professional drivers Based in Osaka and Kyushu, our company has permits for performing industrial waste collection and transportation in 23 of Japan's prefectures. We use our own vehicles in the Kansai and Kyushu regions, but we service Kanto, Chubu, Chugoku, Shikoku, and other regions in cooperation with our partner companies. This extensive logistics network enables us to cater to our clients' diverse range of needs. Reclaimed fuel—a key product for the REMATEC Group—is delivered via trucks and vessels to cement plants. Our vessels can transport a load of about 700 tons (equivalent to 70 trucks), which Commitment of upper management contributes significantly to reduced CO ⁄ emissions. We perform low- cost equipment cleaning safely and quickly on behalf of our clients by leveraging our many years of experience and know-how. As a logistics company that plays a part in both arterial and venous logistics, we prioritize creating a team of professional drivers who are fully committed to safety and quality. Our company-wide activities are guided by our slogan for this year: "Never forget the basics and always strive for professionalism." Building trust with our customers and employees Isamu Hisanaga President We believe that we earn trust by delivering the optimal service in response to our clients' needs, identifying problems unnoticed by our clients, and proposing and carrying out solutions to such problems. A strong, constructive partnership emerges when our clients pay for the satisfaction that we offer, rather than for our services per se. I believe customer satisfaction is the source of our happiness. At the same time, I intend to gradually and patiently build trust with our employees through self- disclosures that gain their interest while getting a firsthand feel for the right distance to maintain. My eagerness alone won't deepen trust—I believe that rapport is a natural product of a consistently sincere, humble, and unpretentious attitude, as well as appreciation and consideration for others. from Employee comments
My challenge to myself
Ensuring safety by communicating with my crew During my more than 20 years in transportation, I have spent 12 years involved in the collection and transportation of industrial waste. This April, however, I was assigned to traffic control. As this is outside my area of expertise, I struggle every day with this new challenge and with doubts about whether I am qualified to perform this job. My role is to protect the safety of drivers by preventing them from ending up in an accident. Most accidents associated with human error are caused by inadequate checks. Given this, I proactively communicate with our drivers to ensure that checks are reliably conducted before transportation begins, while being sensitive to any changes in their health and mental condition. In addition, we help our clients to reduce the costs involved in waste collection and transportation by eliminating wasted time and enhancing our turnover rate. Chief, Traffic Control Department TOPICS
Boosting global logistics
through the launch of a fly-ash
transportation service
The REMATEC Group is responding to a shortfall in the supply of biomass fuel by mobilizing its technological development capabilities and its strong international network. We expect to see an increase in both the importing of fuel and the exporting of fly ash (i.e., fuel combustion residue) from power plants. To boost the underpinning global logistics, our company has begun transporting fly ash from biomass- and coal-fired power plants to cement and construction material plants for the recycling of resources. We are committed to the following: reducing fuel consumption to help curb global warming (elimination of waste caused by unnecessary workers riding in vehicles and enhanced occupancy by eliminating empty vehicles) and eliminating leakage accidents to prevent contamination (joint confirmation of basic vehicle operations and provision of guidance to raise driver awareness). Coal ash is transported on vehicles designated for carrying powder. The ash is loaded from a silo at a power plant through the upper hatch on each vehicle. It is then unloaded via pneumatic transportation into a receiving tank. Depending on the conditions of the ash (i.e., its specific weight), this seemingly simple task can cause problems such as variations in the loading and unloading times, misjudgments in determining the loading amount to avoid overloading, and clogging of pipes. Adapting to such problems requires experience and ingenuity. Initially, of course, our company lacked the know-how required for powder transportation, so our drivers underwent a rigorous one-month training course run by from Stakeholder comments Sangi Tuuun Co.,Ltd. our parent company, to learn basic vehicle operations, acquire know-how that cannot be documented, and find out how to respond to unexpected developments. They returned with the necessary professional skills and experience. Having become skilled in operating special vehicles, our drivers became more confident and gained more satisfaction from their jobs, which in turn strengthened their sense of commitment. They are now eager to take up new challenges thanks to their enhanced awareness of safety as professional drivers of special vehicles. rew lo juje d w Continuing expectations for the quick on-site responses provided by the REMATEC Group Yosuke Sugai Section Chief, Environmental Resource Department Sangi Tuuun Co.,Ltd. For over 30 years, we have had the opportunity to cooperate with REMATEC in the transportation of reclaimed fuel. Our partnership was further strengthened in 2010 when we established the RTT Corporation in a joint venture with REMATEC. I was temporarily assigned to work for RTT for about three years when the company was first established. What impressed me the most was the effective on-site responses that REMATEC was able to provide. In the aftermath of the Great East Japan Earthquake, a large workforce was required to process the enormous amount of debris generated in the disaster. The Group quickly recruited local workers and taught them how to sort the debris to an acceptable level for cement processing. This was truly an effective on-site response. The logistics industry today is facing a serious and chronic labor shortage. To help alleviate this problem, we exchange human resources with RTT during our busy or lean seasons to support one another. I believe that this is also an effective on-site response. Underpinned by this remarkable capability, I hope to see the entire REMATEC Group develop even further. We also look forward to continuing our work with REMATEC so as to harness our synergy.
REMATEC & KSN
THAILAND
● Planning, development, and investment in resource recycling businesses in Thailand and throughout Asia
Leveraging the REMATEC Group’s know-how to tackle
the environmental challenges faced by emerging economies REMATEC & KSN THAILAND (RKT) is mainly engaged in facilitating the planning of waste recycling projects in Thailand, the development of projects for the effective application of untapped resources in Asia, as well as investments in these projects. The astounding economic growth experienced by Thailand is overshadowed by the environmental degradation caused by landfills containing inadequately sorted urban waste and the inappropriate burning of waste. RKT was able to devise a processing workflow Commitment of upper management for the recycling of waste into fuel by employing the know-how of the REMATEC Group, which has experience in tackling various environmental challenges in Japan. In November 2015, full-scale business operations were begun by establishing a joint venture with the Siam Cement Group. We will continue to work with the people of Thailand to help them solve these problems and to take up new challenges with the aim of serving as a hub for the Group's Asian business operations. TOPICS
Establishing the On Nut Interim
MSW Treatment Plant
This plant for the production of refuse-derived fuel (solid) was established by Green Conservation Solutions (GCS), a joint venture between RKT and SCI ECO Services Co., Ltd., which in turn is a subsidiary of SCG, one of our local partners. An alternative fuel to coal for use in SCG's cement plants can be obtained by producing RDF from the plastics found in municipal solid waste (MSW). Additional benefits include the fact that less waste ends up in landfills and that fertilizers can be produced from organic materials. Overall, this solution reduces the environmental loads.
Biomass project in Malaysia
Biomass power generation is mainly fueled by wood chips and palm kernel shells (PKS). Since the availability of these materials is limited, our company investigated the potential for recycling empty fruit bunches (EFB), which used to be disposed of after palm oil extraction, to produce fuel for power generation. A joint technological development with Taiheiyo Cement Co.,Ltd. and Saraya Co.,Ltd. led to the successful recycling of EFB into fuel. We will continue to work not only in Japan, but also in the rest of Asia to promote biomass power generation as a carbon-neutral solution with a small environmental load. Empty fruit bunche (EFB) Washed a drver Pulverized Pelletized from Stakeholder comments
Technology of REMATEC Group supporting
development of the environmental management Mr.Teerapon Tirawasin Managing Director, SCI Eco Services Co.,Ltd. (SCIeco) Vice Chairman of Renewable Energy Industry Club, Federation of Thai Industry Former Chairman of Environmental Management Industry Club, Federation of Thai Industry First of all, I would like to congratulate REMATEC Group on their long term sustainable success over 40 years in environmental management business. There are many proved occurrences for REMATEC Group as one of the best world class companies. One of the key occurrences is establishing REMATEC Tohoku branch to efficiently response to waste more than 2 million tons in affected areas, during the Great East Japan Earthquake in March 2011. In additional, for case of REMATEC KYUSHU plant accident in 2013, REMATEC KYUSHU has effectively handled situations by systematically investigating and analyzing for causes and implementing preventive rules. Consequently, a year later, new fully-automatic plant was developed. Obviously, this instant resume operation could not be done without trust from community. As Thailand are in beginning of anti-illegal waste dumping era, the government has endorsed new regulations, both for industrial and municipal waste, and closely monitored illegal dumping. In parallel, waste to energy incentive schemes have been launched to promote iew logic 3R concept and encourage practical waste disposal as well. To be aligned with the nation, in 2015, SCIeco's board of directors has approved to establish a joint venture company namely "Green Conservation Solution Co.,Ltd. (GCS)" with RKT, a subsidiary company of REMATEC Group. Supporting by REMATEC Group technology and SCIeco experience in Thailand, GCS is positioned to develop municipal waste management and waste to energy business. We place our confident not only in REMATEC Group, but also Mr. Tanaka, president of RAMATEC Holdings, who has long and continuous experience in succeeding environmental business, both in Japan and international. We believe that he will continuously develop scheme and business, and integrate his valuable knowledge to support Thailand transition period on environmental management. Finally, I do believe that REMATEC Group would be one of the most important element in developing Thailand environmental management as well as for Japan. Mobilizing technologies and know-how cultivated in Japan to build zero-waste infrastructure in Southeast Asia Chanet Rattakunjara REMATEC & KSN(Thailand)Co., Ltd CEO Thailand and other ASEAN members have achieved remarkable economic growth over the past decade. At the same time, they now face a host of environmental and energy problems. Environmental issues in particular need to be tackled urgently as the development of infrastructure for resource recycling and environmental protection is not keeping pace with the rapid economic growth. Indeed, ASEAN countries are struggling with the same problems that Japan experienced during its period of high economic growth rates. To address these problems, we are adhering to our key concept of zero-waste infrastructure. We are working with our local partner companies to tailor the know-how acquired in Japan by REMATEC and Kansai Recycling Network into an optimal system that takes into account the realities faced in each ASEAN country so that we can propose the right environmental infrastructure to be built there. from Employee comments Aspiring to lead environmental protection efforts in ASEAN Our company may have only a short history of just three years, but our short-term goal is to lead the way in environmental protection not only in Thailand, but also in other ASEAN countries so as to save our precious global environment and help build a sustainable society. As someone responsible for the finance and administration of this company, I will spare no effort in enhancing the value of both our projects and the company as a whole while proactively communicating with our stakeholders. I am delighted to be a part of this high-minded company, and I take great pride in contributing to our projects. Phimon Lertsabanant Chief Financial Officer
Re:CS Co., Ltd.
● Zero-waste solutions Creating innovative resource recycling services through close client partnerships underpinned by trust A company that supports the pursuit of zero waste, Re:CS Co.,Ltd. was established on March 1, 2016, through the spinning off and integrating of the sales departments of three companies with recycling operations based in Kansai. The name of our company, which is derived from our corporate slogan—Re-Creation for Sustainable Society—reflects our desire to help build a sustainable society as a trusted partner to our clients. In addition, the seven leading waste treatment companies in the Kansai region came together to form the Re:CS Group with a view to providing waste generators with optimal solutions. In response to calls for a sustainable society, we aim to create the zero-waste infrastructure required to provide more advanced resource recycling services and innovate the resource recycling industry. ) Partnering like-minded companies to create zero-waste infrastructure for a new era Yorihiko Shiomi President Re:CS was born out of the sense of impending crisis that the upper management of its parent companies felt in anticipation of a new era for their industry. Their concerns included a decline in the amount of waste that is generated, an intensification of low-cost competition, and major companies from other industries entering the market. An expansion of waste facilities is extremely time consuming and carries a great deal of risk. Sharing a strong relationship of trust, these three like-minded companies believed that a firm alliance was necessary for their future survival and for them to be able to deliver the services that today's society demands. The sales integration that led to the establishment of Re:CS is also aimed at management integration. Currently, the lineup offered by our sales department has been expanded partly in partnership with four other companies, and robust customer risk management (CRM) is being implemented. We are creating zero-waste infrastructure so that we can provide new resource recycling services that target customers needing low-cost, high-performance recycling with minimal risk. TOPICS Celebrating the anniversary of Re:CS’s founding On April 4, 2016, we held a party in Osaka to celebrate the anniversary of the founding of Re:CS Co.,Ltd. At the party, an explanation of the purpose of our founding was provided, our directors said a few words and some shareholders and guests delivered congratulatory speeches. We would like to thank all of our stakeholders for their participation.
Study sessions with partner companies
Re:CS staff organize study sessions with staff from our partner companies so that they can develop the skills required by salespersons and provide our clients with better services. In addition to information exchanges and a program for learning about treatment methods and technologies, the study sessions include tours of the facilities operated by the participating companies and lectures by guest speakers. priority issue—to be underpinned by Re:CS from Employee comments Seeking to become the go-to person for our clients whenever they need help temporal 
admos dnow Takeshi Koyama Solution Business Department It has been several months since we began our operation here in April 2016. At first, it felt as if we were working in sales for other companies under the same roof. Given that we even exchange jokes now, I feel that we are gradually building up our team spirit. In terms of the work that we perform, the sales integration of our three companies has also encouraged clients to request different kinds of support from us. I also notice that we are collaborating much more closely with our clients now. Initially, we were not sure how things would develop after the fast-paced establishment of this new company. Now, though, I aim to drive the sales growth and business expansion of our company so as to become the go-to person for our clients whenever they need help. President Nobuo Nakamura a-Socca, Inc. A dramatic paradigm shift toward the pursuit of zero-waste economies is occurring in societies around the world, as showcased by the UN Sustainable Development Goals and the European Commission's Circular Economy Package. Japan, however, does not have sufficient zero-waste infrastructure to make this transition possible, and we have been concerned that this weakness will pose challenges to the Japanese economy. I was quite surprised, then, when I heard that the presidents of three companies (Kansai Resource Network, Marusan, and REMATEC Holdings) had decided that they would integrate their sales departments and management in the near future in order to create zero-waste infrastructure. Desiring to support their efforts, we decided to acquire a share, albeit a minor one, in Re:CS. Just 40 years ago in 1976, Yamato Express launched a door-to-door delivery service, and thanks to the infrastructure that they built, door-to- door deliveries are now common practice. We have high hopes that Re:CS Co.,Ltd. will similarly grow to one day become a company that underpins zero-waste infrastructure. 32 REMATEC GROUP Environmental performance data from RF business Target organizations: REMATEC Corporation, REMATEC KYUSHU Corporation, and RTT Corporation INPUT Resources Gasoline (kl) 26.0 Light oil (x2) 22.4 A heavy oil (k4 85.0 Heating oil (x4 Electricity(kwn) 2,826,878 Industrial water(m) 12,673 SELIATEC  FRANTEC KYUSHL Giscoine (k f ) 14.3 11.7 12.9 9.5 Light oil (k 2) 0.0 A heary oil (k f ) 0 0 Heating oil (k.2) Electricity (kWh) 1,105,575 1,721,303 It dustrial nation (m) 0.00 12,673.00 ■■ Low-grade fuel ships - ■ CO: emissions Breakdown ① Industrial waste (t) Waste oll Waste acids Waste alkalia Soot and dust Waste plastics Animal and plant residues Cindera Scrap metal (2 Waste cil from ships ( t ) ( ) Raw materials ( t ) ( 1,056 15,576 Amount of waste and recycling rate Valuable scrap metal(p  595 REMATEC      REMATEC KYLSHU 1,323 44,475 44,475 0 412 368 44 44 ■■ Amount of accepted waste     ■ Recycling rate ■■ Non-recyclable industrial waste (も37,064 37,064 Collection (transportation) business Light oil consumption (c) 387.5 BIT 387.5 184.2 168.7 34.6 Gasoline consumpt tion(k) 1.0 RTT 0.0 1.0 0.7 RF production OUTPUT Recycled materials and CO 2 emissions CO: emissions 1,959 nests): 97. CO, emissions (; CO,) 636 shipments (t) 52,925 52,925 RF shipments Lov-gack fuel shipsens 0 on-recyclable 2,168 industrial waste () 2,138 Recycling residues Empty containers 30 26 Waste plastica 0 Scrap Matal Wood waste Paper waste 00 Debris Fiber waste Class waste 594.59 hable scrip metal (t) PEMATEC  REMATEC KYLSHU cycling rate (%) 81.8 98.6 Collection (transportation) 1,004 CO: emissions RT 478 436 1,004
REMATEC Amount discharged
0 0 21,488 21.488 15,576 Soot and dust 3,325 Animal and plant residues Scrap metal Cinders 1,236 Waste plastics 1,150 328 Breakdown Recycled fuel Waste alkalis 15.618 2,975 40,041 Sludge elea Osaka Branch   Kyahu Barch  Tahole Barch 0.3 0 85.0 Recycled fuel Waste acids Waste oil Sludge This is the fourth time I have provided feedback on the REMATEC Group's CSR report in my capacity as an external advisor, and the Group has undergone a number of changes since I began doing this. Examples of these changes include REMATEC's reorganization into a holding company and its overseas expansion. With the global environment deteriorating in an increasingly chaotic world, I believe that such changes are a result of the struggles and challenges that the president has faced in ensuring their survival as a valuable company in an increasingly competitive industry. This report suggests that his ideas are gradually taking shape. The message from the president envisions the construction of zero- waste infrastructure through open innovation. As part of this effort, the company has established a new management system while also designating a REMATEC Remembrance Day to help ensure safety. Another notable initiative that indicates a new direction for the industrial waste industry is the company's establishment of Re:CS Co.,Ltd, by integrating its sales department with those of other companies in pursuit of further evolution and shared value creation. With three years having passed since REMATEC's reorganization into a holding company, it seems that the benefits are gradually becoming visible. For instance, the business overviews provided by each of the Group companies seem clearer than they were the previous year. The comments made by upper management and employees demonstrate their passion and commitment to their work, while the comments made by stakeholders in Japan and abroad suggest that the Group has built a relationship of trust with them and that its value as a bridge leading local communities to a brighter future is gradually being accepted. It is a shame, though, that there is insufficient overall data to demonstrate their environmental performance. In particular, as I also pointed out last year, a significant reduction in CO c emissions will be Konoe Fujimura Co-President Japan Association of Environment and Society for the 21st Century required under the Paris Agreement. Both the Group and its member companies will need to accurately track the amount and sources of their CO λ emissions so that they can take adequate measures. Moreover, the report fails to demonstrate the overall social contributions that the Group companies have made in reducing CO 5 emissions through their renewable energy businesses and energy-saving activities. An overall understanding of the emissions generated by the Group's own companies and the reductions achieved through its business activities would enhance social trust in REMATEC as an environmentally conscious corporate group. In terms of the Group's environmental management activities, it is disappointing to see that there has been a significant drop in the recycling rate and some other failures to achieve goals and targets. With respect to safety and health activities, it is regrettable that another accident has been reported. I expect these problems will be resolved when the new management system takes hold properly and the REMATEC Remembrance Day pledge is honored by more and more employees. Let us not forget, though, that essentially everything depends on the awareness and behavior of the individual employee. When the Paris Agreement came into effect, the world made a pivot toward pursuing a decarbonized society. The road ahead for REMATEC certainly won't be a smooth one during such a significant turning point for our civilization. Even so, I would like to see all REMATEC Group companies continue with its efforts to realize their vision of becoming a corporate group that plays a leading role in supporting the use of zero-waste infrastructure in society. To this end, the Group should harness the uniqueness and autonomy of each of the companies while also encouraging cooperation among them. Response to External Adviser Feedback Three years on from the reorganization of REMATEC into a holding company, it is very encouraging to receive a positive evaluation of the determination and growth demonstrated by each of the group companies, as described in this report. It is also pleasing that Re:CS Co.,Ltd. has been recognized for implementing initiatives to guide the industry in a new direction, and this fact has convinced us that our corporate culture should continue to value quick and flexible responses in facing up to challenges. The REMATEC Group has set a medium- to long-term management vision of transitioning into a corporate group that plays a leading role in supporting the use of zero-waste infrastructure in society. To achieve further growth and expand our business domains accordingly, it is essential that we collaborate with our business partners by adopting the concept of open innovation. Each company aims to identify different challenges according to their region and expertise and create shared value in their respective solutions. To do this, we will continue building trust with our stakeholders both in Japan and abroad through proactive communication. the importance of improving the quality of our disclosed data. Unfortunately, part of our power consumption cannot be tracked because the building or facility owners bundle the power consumption together or the power companies do not provide detailed statements. Given this, we have postponed disclosure of our power consumption to ensure that we do not inadvertently mislead our stakeholders. Admittedly, our recycling rate has dropped and an accident was reported, but each and every one of us will get back to basics to fix our problems while searching our souls to see if our experience and confidence did not lead us to overestimate our abilities. From the next fiscal year onward, we will continue to try and put ourselves in the position of our readers when producing reports in order for our Group's management philosophy and activities to be understood by as many stakeholders as possible. REMATEC REMATEC Holdings Corporation REMATEC  REMATEC R&D Corporation 11-1 Jizohama-cho, Kishiwada-shi, Osaka 596-0015, Japan Phone 072-438-4146 Fax 072-422-3809 Headquarters 4-2-4 Chikko-Shinmachi, Nishi-ku, Sakai-shi, Osaka 592-8331, Japan Phone 072-280-0525 Fax 072-280-0526 http://www.rematec.co.jp http://www.rematec.co.jp/rd/ Headquarters 4-2-4 Chikko-Shinmachi, Nishi-ku, Sakai-shi, Osaka 592-8331, Japan Phone 072-280-0672 Fax 072-280-0673 11-1 Jizohama-cho, Kishiwada-shi, Osaka 596-0015, Japan Phone 072-433-7880 Fax 072-433-7881 Kyushu Branch 648-1 Notsuichi, Notsumachi, Usuki-shi, Oita 875-0211, Japan Phone 0974-32-7820 Fax 0974-32-7821 Fujiwara Office 1361-1 Fujiwara-cho Tozenji, Inabe-shi, Mie 511-0515, Japan Phone 0594-46-4544 Fax 0594-46-4544 http://www.rtt-rematec.co.jp http://www.rematec.co.jp/rematec/
I REMATEC&KSN THAILAND
Headouarter No.589/146, Room OF2602, 26th Floor, Central City Tower, Bangna-Trad Road, Bangkok 10260, Thailand Phone +66-(0)2-745-6793  Fax +66-(0)2-745-6794
REMATEC
REMATEC KYUSHU Corporation
906 Notsumachi Miyakobaru, Usuki-shi, Oita 875-0211, Japan Phone 0974-32-7721 Fax 0974-32-7731 C/O TAIHEIYO CEMENT CORPORATION Oita Tsukumi Plant 2-1 Gonomotomachi, Tsukumi-shi, Oita 879-2474, Japan Phone 0972-82-9055 Fax 0972-82-7025 1-9-23 Yanagimachi, Moji-ku, Kitakyushu-shi, Fukuoka 800-0025, Japan
Re:CS  Re:CS Co., Ltd.
6F, Premium Nagahori Building 1-3-9 Minamisenba, Chuo-ku, Osaka-shi, Osaka 542-0081 Phone 06-6210-2327 Fax 06-6210-2328 http://re-cs.co.jp http://rematec-kyushu.com/ 2-3 Kameida, Akasaki-cho, Ofunato-shi, Iwate 022-0007, Japan Phone 0192-47-3526 Fax 0192-47-3527 http://www.rematec.co.jp/tohoku/
WRTT RTT Corporation
Oraka Branch