Medium-Term Management Plan

Sustainability Strategy

Envipro Holdings Inc.

August 27, 2021

Table of Contents

1. Environmental Analysis and Materiality

P3-6

2. Our Vision

P7-13

3.

Medium-Term Management Plan

P1415

Overview of Sustainability Strategy

2

Identifying Materiality to Contribute to Create a Sustainable Society

Long-Term Trends

GX

DX

Green Transformation

Digital Transformation

Medium- and Short-Term Trends

Development of

Development of

Trade friction between

carbon neutrality

a circular economy

the U.S. and China

Post COVID-19

Act on Promotion of Resource

Decline of working population

Non-face-to-face/contactless

Circulation for Plastics

Elements for identifying materiality : impact on business, strength of our group and effects on society

To Identify Materiality

  • Increasing demand for green materials in the supply chain
    • Increasing demand for ferrous scrap due to building of additional electric furnaces
  • Increasing demand for nonferrous metals and minor metals due to electrification
    • Promotion of advanced resource circulation of waste plastics
  • To promote GX and DX in all processes of business activities
  • To promote diverse work styles and accelerate automated operations and the reduction of the labor required

3

Decarbonized Society/Increasing Demand for Ferrous Scrap

(100 million)

Global Steel Production Forecast

Crude Steel Production: Scrap Utilization

30

26.8

25

20

16.2

15.5

15

10

5.6

5

0

20152050

Crude Steel Production

Scrap Utilization

Source: Excerpted from The Japan Iron and Steel Federation's "Long-term vision for climate change mitigation (Forecasts of steel stock accumulation and steel production)" published on November 19, 2018 (graph created based on excerpted figures)

Electricity, the energy source of electric furnaces which in the manufacturing process emit only a quarter of the CO2 of blast furnaces, enables carbon neutrality to be achieved when the electricity supply is from renewable resources.

Source: Ministry of the Environment website "Minutes of the Fifth Meeting of the Subcommittee on Mid- to Long-term Roadmap"

New installation of large electric furnace facilities by blast furnace manufacturers, increase in steel scrap mixing rate in converters

In a decarbonized society, demand for

ferrous scrap (green materials) is expected to increase.

4

Decarbonized Society/Increasing Demand for

Nonferrous Metals and Minor Metals

  • Supply-demandgap for nonferrous metals and minor metals due to diffusion of clean energy technologies

Supply- demand Gap

Supply- demand Gap

Supply is expected to be insufficient for demand, and the value of these nonferrous metals and minor metals is likely to remain high and stable.

Source: IEA World Energy Outlook Special Report, The Role of Critical Minerals in Clean Energy Transitions

The acceleration of decarbonization will further increase demand for secondary raw materials (green materials) for nonferrous metals and minor metals,

from aboveground resources (urban mines).

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

Envipro Holdings Inc. published this content on 01 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 September 2021 06:01:01 UTC.