Basic Approach

As stated in the TRE Group’s principles, “We are committed to the conservation of the global environment,” and are striving to contribute to the creation of an efficient recycling society and a carbon-neutral society through our business activities. In addition, under our Basic Policy on the Environment, we are working to conserve the global environment and reduce our environmental footprint by reducing our CO₂ emissions, among other measures.

Basic Policy on the Environment

TRE HOLDINGS CORPORATION and its affiliated companies (“the TRE Group”) operate Waste Treatment & Recycling Business, Resource Recycling Business, Renewable Energy Business, and other environment-related businesses. As a WX environmental company, TRE Group is committed to proactively working toward conservation of the global environment and reduction of environmental impact in order to realize a future in which both companies and society can achieve sustainable growth.
Furthermore, addressing climate change and environmental issues is a key management priority. Under the framework of the Paris Agreement and Japanese government’s goal of achieving carbon neutrality by 2050, we recognize the role that companies must play in realizing a sustainable society. We believe that addressing these challenges through our business operations will lead to the sustainable growth of our Group.

Operation of environmental management system

The TRE Group has obtained ISO 14001 certification, the international standard for environmental management, as well as Eco-Action 21 certification, an environmental management system established by Japan’s Ministry of the Environment, and operates the PDCA cycle to make continuous improvements to its management processes. As of the end of fiscal 2023, 82.6%* of TRE Group companies had obtained environmental management certifications.

* Number of employees at sites that have obtained management system certifications / number of employees in the entire TRE Group

Create an Efficient-Recycling SocietyMaterial Issue

Action plan

• Build a resource recycling scheme by linking waste management companies and other industries.
• Improve facilities and realize plans for advanced sorting sites.
• Add value to unused resources or turn them into products.
• Build a business scheme for recycling waste plastic.

Create a Carbon-Neutral SocietyMaterial Issue

Action plan

• Establish/operate sustainable woody biomass power generation plants integrated with forest management.
• Introduce a CO2 calculation system to monitor greenhouse gas (CO₂) emissions from business activities in a timely manner and visualize the effect of measures implemented to reduce emissions.
• Provide environmental equipment, technology and services that help stakeholders reduce greenhouse gases (CO₂).

Trial operation of new electric excavator

This trial was performed at the recycling center in order to obtain continuous data on the excavator’s durability, safety, and environmental performance under the work environment of a waste treatment facility.
The electricity used to charge the excavator is partially generated in-house by solar panels installed at the center, further contributing to the reduction of CO₂ emissions.

Response to Climate Change Information disclosure based on TCFD recommendations

Basic approach

TRE HOLDINGS is fully aware of the impact of climate change, including associated environmental destruction and the need for countermeasures. Accordingly, we have set the realization of “an efficient recycling society” and “a carbon-neutral society” as material issues. In fiscal 2022, we expressed our support for the Task Force on Climate-Related Financial Disclosures (TCFD). Although society and markets are increasingly acting to achieve carbon neutrality, abnormal weather events and flood damage are already growing more severe. We will continue our efforts to help resolve societal challenges related to climate change via our business, including contributing to disaster recovery efforts.

Governance

The TRE Group has established the CSR and Sustainability Committee as an organization to set targets and plan, announce, execute, and evaluate strategies concerning the Group’s climate change countermeasures and other initiatives aimed at solving social issues. The CSR and Sustainability Committee is chaired by the President and COO. As the body for deliberating sustainability-related initiatives, its functions include determining relevant policies and managing the progress of targets. It meets at least twice a year, in principle, and reports to the Board of Directors after holding discussions and obtaining a consensus at Group management meetings. The Board of Directors supervises the progress of targets and policies.

Risk management

The CSR and Sustainability Committee discusses the impact of the risks and opportunities of climate change on the Group’s business and how to manage those risks going forward, and the results are disclosed in this integrated report.

Strategy

The Group seeks to understand the risks and opportunities posed to business by the migration risks and physical risks of climate change, and to reflect that understanding in business strategies and in the planning of climate change countermeasures. The results of the climate change risk impact analysis indicate that for the Group, which is engaged in waste treatment, recycling and renewable energy businesses, the risks posed by climate change to business continuity are significantly outweighed by the business opportunities, which are linked to future growth opportunities.

In accordance with TCFD recommendations, we also conduct scenario analysis to identify climate change-related risks and opportunities. During this scenario analysis, we defined a 1.5°C scenario and a 4°C scenario based on scientific evidence from the International Energy Agency (IEA) and other sources, and estimated the following three items to evaluate the magnitude of climate-related risks and opportunities that may affect our business in 2030.

Under the 1.5°C scenario, we anticipate a significant cost increase due to carbon taxes. At the same time, our qualitative assessment also indicates an increase in business opportunities. With regard to physical risks, we also anticipate an increase in such risks due to climate change. In light of the fact that the Group’s businesses contribute to conserving the global environment, including climate change countermeasures, we have established the creation of an efficient recycling, carbon-neutral society as material issues to address, and we will focus on reducing the risks of climate change while seizing business opportunities.