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TRE HOLDINGS

Management

Sustainability Management

TRE HOLDINGS is enhancing our corporate value and strengthening governance structure so that our various stakeholders will trust us. On top of that, we are practicing sustainability management as a comprehensive environment management enterprise that responds to various environment-related needs.

Sustainability management structure

Value Creation Model

TRE HOLDINGS receives waste of products that were originally produced by other industries and used by consumer society, and recycles almost all of these materials. Furthermore, we are expanding our renewable energy business in order to contribute to a sustainable global environment by realizing an efficient recycling society and a carbon-neutral society.

Material Issues and Key Performance
Indicators (KPIs) of TRE Group

To put into practice the Group’s principles, “We are committed to the conservation of the global environment,” we strive to achieve the target metrics (nonfinancial KPIs) set for each of the material issues identified.

Basic approach

In recent years, there has been an accelerating movement globally to resolve social problems, represented by initiatives such as the goals of the Paris agreement and the UN’s Sustainable Development Goals (SDGs). To respond to this societal demand while also putting TRE HOLDINGS’ principles that state “We are committed to the conservation of the global environment” into practice, we have identified material (key) issues that we will prioritize.
To identify these issues, we held multiple discussions and debates from views such as which social issues we could help resolve through our strengths and expertise as a comprehensive environmental management company, which matters we should use as a foundation for the continued business of TRE HOLDINGS, and which matters would be necessary for sustained growth in corporate value. At the end of this repeated processes, we identified five material issues.

The process of identifying material issues

We collected and organized a wide range of social issues, analyzed the material issues from two viewpoints—their importance to TRE HOLDINGS and their importance to stakeholders—and broadly selected the issues. The five issues were identified after an employee workshop had been held and the CSR and Sustainability Promotion Committee deliberated the issue.
Based on these material issues, we set KPIs for fiscal 2024 in line with the Second Medium-Term Business Plan. Going forward, we will continue to steadily promote these initiatives by implementing the PDCA cycle.

  1. Step1

    Considering candidates for material issues

    We began by compiling an extensive list of issues taking into account recent societal demands and trends, and ultimately identified 53 items as candidates for material issues.

  2. Step2

    Scoring material issue candidates

    We performed a four-stage evaluation (scoring) of material issue candidates from two viewpoints: their importance to TRE HOLDINGS and their importance to stakeholders.

  3. Step3

    Narrowing down candidates for material issues

    We gathered employees from a range of departments to debate the appropriateness of our rankings. Finally, we narrowed the material issues down to five based on our future vision.

  4. Step4

    Approval from management

    The CSR and Sustainability Promotion Committee exchanged opinions on the organized material issues and judged them to be appropriate, and they were settled upon after the approval of the Board of Directors.

  5. Step5

    Setting KPIs

    We then established quantitative key performance indicators (KPIs) for each of our five material issues. Implementing initiatives to solve issues.

Key performance indicators (KPIs) for each of our five material issues

Material issues Key performance indicators (KPIs) Action plan Related SDGs
Create an
efficient-
recycling
society		 Enhancing recycling efficiency
  • Achieve a recycling efficiency of 93% or higher by 2030.
  • Achieve a recycling efficiency of 94% or higher by 2040.
  • 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.
  • 9 Industry, innovation, infrastructure
  • 11 Sustainable cities and communities
  • 12 Responsible consumption, production
  • 14 Life below water
Create a
carbon-neutral
society		 Reducing CO2 emissions
  • Achieve net zero CO2 emissions from purchased electricity (Scope 2) by 2026.
  • Reduce CO2 emissions (Scope 1+2) by 46% or more in real terms by 2030 (compared to FY2013).
  • Achieve net zero CO2 emissions (Scope 1+2+3) by 2050.
  • 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).
  • 7 Affordable and clean energy
  • 13 Climate action
  • 14 Life below water
  • 15 Life on land
Create
pleasant and
fulfilling
working
environments		 Rate of male employees taking childcare leave (HR)
  • Increase the rate of male employees taking leave for childcare purposes* to 100% by 2030. *Childcare leave or paid leave
Increasing number of women in managerial positions (HR)
  • Double the number of women in managerial positions by 2035.
Striving to achieve a lower workplace accident frequency rate (Safety)
  • Reduce workplace accident frequency to average of all industries by 2030.
  • Create workplaces where anyone can work in health and safety and with peace of mind.
  • Promote work-life balance.
  • Develop the human resources that will support the company’s sustained growth by carrying out all kinds of training and providing a system to support obtaining qualifications.
  • Ensure thorough awareness of safety management and promote accident prevention initiatives at plants and in vehicles.
  • 3 Good health and well-being
  • 4 Quality education
  • 5 Gender equality
  • 8 Decent work and economic growth
Strengthen the
corporate
governance
structure		 Conduct assessment of the effectiveness of the Board of Directors.
  • Conduct an annual assessment of the effectiveness of the Board of Directors.
Participation in internal governance-related training
  • Achieve a 100% participation rate
  • Maintain the transparency of management by establishing various committees.
  • Conduct training to ensure thorough compliance and check the state of observance.
  • Practice appropriate information management and risk management.
  • Conduct assessment of the effectiveness of the Board of Directors.
Enhance our
brand value and
increase our
recognition as a
comprehensive
environmental
management
company 		Higher evaluations from external rating agencies (ESG rating agencies, etc.).
  • Disclose information in a timely and suitable fashion.
  • Practice fair and equitable IR activities.
  • Engage stakeholders.

Sustainability Finance

Issuance of Sustainability-Linked Bond

TRE HOLDINGS has developed the following "Sustainability-Linked Finance Framework." The Groups will execute Sustainability-Linked Finance based on the framework. We will pursue sustainable growth to create an efficient recycling society and a carbon-neutral society with our stakeholders.

Sustainability-Linked Bond Reporting

Our reporting process has been reviewed by SOCOTEC Certification Japan Co., Ltd., an independent third party.

Sustainability- Linked Finance Framework

Second opinion from Rating and Investment Information, Inc.

Reporting

Endorsement of the TCFD Recommendations

TCDF

The TRE Group regards the impact of climate change on our business as an important management issue. Accordingly, in our Medium-Term Business Plan we have set the goal of realizing an efficient recycling society and a carbon-neutral society, and are working to tackle a range of related challenges. Recognizing that climate change presents both mid- to long-term risks and opportunities for the Group's business, in addition to studying countermeasures we have endorsed the TCFD recommendations and joined the TCFD Consortium in order to ensure appropriate disclosure of information to our stakeholders.

Participation in GX League

With the establishment of Japan’s Green Transformation (GX) Promotion Act, which aims to fulfill international commitments such as carbon neutrality by 2050 while strengthening the competitiveness of the nation’s industry and achieving economic growth, momentum is building for a green transformation.

The GX League is a platform for companies taking up the challenge of transitioning to carbon neutrality, and serves as a forum for companies to promote collaboration with government and academia toward this goal. The TRE Group became a member of the GX League in February 2024. By participating in this platform, we will keep up to date with the latest developments related to carbon neutrality and work to advance GX initiatives within the company and in our business operations, in order to fulfill one of the Group’s missions of creating a carbon-neutral society.

Policies