Prevention of Pollution and Resource Circulation

Policy and Basic Concept

Prevention of Pollution

Within its business activities, ITOCHU will strive to prevent and reduce environmental pollution caused by chemical substances and oils, reduce emissions of air pollutants, and reduce and properly process hazardous waste and wastewater. We will fulfil our responsibility of pollution prevention by complying with international declarations, agreements, and treaties, as well as with the laws and regulations of the countries and regions in which we operate. We shall also comply with any other agreements that we have consented to.

Resource Circulation

ITOCHU handles a wide range of products, from plastics to metals, rubber, cement, and foodstuffs. We have identified “Ensure Stable Procurement and Supply” and “Address Climate Change (Contribute to a Decarbonized Society)” as ones of our key sustainability material issues. We will contribute to the formation of a circular society by promoting the sustainable use of resources along the value chain of our business investments and our products and services. We aim to realize resource circulation through the 3Rs (Reduce, Reuse, Recycle) and substituting sustainable raw materials from the design stage of products and services, and promoting sorting, collection, and recycling business for used products.

Targets and Action Plan

ITOCHU sets qualitative management targets and quantitative performance targets to promote better practices in pollution prevention and resource efficiency. The environmental targets and achievements in FYE 2023 are as follows.

Qualitative Targets

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Item Boundary Target FYE 2023 Results and Evaluation
Prevention of Environmental Pollution and Compliance with Laws and Regulations Risk Assessment for Investment and Financing Projects

ITOCHU Corporation

Perform pre-investment/financing assessments based on the ESG Checklist, which includes environmental assessment criteria.

Properly implemented

Raising Management Levels through Auditing

ITOCHU Group

Conduct internal audits on environmental management systems to ensure compliance, improved environmental efficiency, and better overall management.

Properly implemented

On-Site investigations of Group Companies

ITOCHU Group

Select appropriate Group companies and conduct on-site environmental management investigations for them.

Properly implemented

Promotion of Awareness Activities Raising Awareness of Laws and Regulations

ITOCHU Group

Increase internal awareness on the Waste Management and Public Cleansing Act and the Soil Contamination Countermeasures Act, as well as other relevant regulatory developments by providing learning opportunities such as seminars and courses. We will also monitor and review participation/uptake rates of these trainings in relevant segments of the company.

Properly implemented

Resource Conservation, Promotion of Resource Circulation, and Monitoring of performance Office Waste Reduction

ITOCHU Corporation

Reduce waste and promote recycling in office activities in accordance with our EMS.

Properly implemented

Paper Consumption Reduction Target

ITOCHU Corporation

Reduce paper consumption by raising awareness of our targets internally.

Properly implemented

Quantitative Targets

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Item Boundary Target Period Target Progress in FYE 2023 Against Targets Assessment
Prevention of Pollution Serious Environmental Accident

ITOCHU Corporation*

Every Fiscal Year

Zero Serious Environmental Accident

Zero

Achieved

NOx SOx Emission Concentration

TAKIRON TECH CO., LTD.

Every Fiscal Year

Suppress to a level 20% below the legal standard

Achieved

Achieved

ITOCHU Ceratech Corporation

Every Fiscal Year

Suppress to a level 20% below the legal standard

Achieved

Achieved

Resource Circulation・Waste Discarded Volume of Waste Discarded

Tokyo Headquarters

March 2025

6% Reduction Compared to FYE 2019

37% Reduction Compared to FYE 2019

Achieved

Recycling Rate

March 2025

90%

91%

Achieved

Resource Conservation Paper Consumption

ITOCHU Corporation

March 2025

3% Reduction Compared to FYE 2019

53% Reduction Compared to FYE 2019

Achieved

  • ITOCHU Corporation, Overseas offices, Group companies subject to compliance

Action Plan

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Risks Opportunities
  • Negative impacts on the natural environment including those related to resource circulation.
  • Deterioration of relations with local communities and subsequent loss of social license to operate.
  • Increased resource demand due to population growth and enhanced living standards in emerging economies.
  • Creation of customer trust and new business opportunities through stable and sustainable supply chain practices.

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Materiality SDGs Targets Impact Classification Issues to Address Business Area Commitment Specific Approach Performance Indicators Degree of Progress
Textile Company
Ensure Stable Procurement and Supply
Supply Chain Reducing our environmental burden in manufacturing processes Textile products in general We will promote the building of value chains starting from raw materials focused on sustainable materials. Promote the RENU project aiming to realize a circular economy in textile industry. Aim to further enhance and expand the handling of sustainable materials.
  • Contribute to fostering of environmental awareness and reducing our environmental burden by promoting the RENU project and further enhancing and expanding the handling of sustainable materials.
  • Work for the goal of “Zero Fashion Loss” and “Carbon Neutrality” committed by Japan Sustainable Fashion Alliance to achieve by 2050.
  • Started the clothing collection service “WEAR TO FASHION” along with investment to ECOMMIT Corporation. By reusing the collected clothes and using some of them as raw materials for “RENU”, the “RENU” project will further promotes a circular economy.
  • The Japan Sustainable Fashion Alliance made policy proposals to Consumer Affairs Agency, Ministry of Economy, Trade and Industry, and Ministry of the Environment for “zero fashion loss” and “carbon neutrality” this fiscal year.
Machinery Company
Address Climate Change (Contribute to a Decarbonized Society)
  • Water Resources
  • Pollution Prevention and Resource Recycling
Improving water and sanitation infrastructures Water and environmental projects We will contribute to improve the sanitary conditions, the development of economic activities, and the protection of the global environment through the appropriate treatment and effective use of water and waste. Expand water and environment projects to promote the appropriate use and treatment of water and the effective utilization of resources, and reduce the burden on the environment. Expand and diversify the investment portfolio in the water and environment field. (Plan to work on decarbonization project development utilizing JCM etc.)

■Environmental Field

  • We operate four municipal solid waste incineration and power generation plants(waste to energy plant) in the U.K, which treat 1.3 million tons of waste annually, accounting for 15% of the UK's waste incineration market, and generate enough electricity to power 160,000 British households.
  • In November 2020, we acquired a 20% stake in Environment Development Company Ltd. (current SSES), which provides integrated hazardous waste management services in Jubail Industrial City in Saudi Arabia.
  • In August 2021, we started to provide the government of Serbia with partial service of energy-from-waste project. Appropriate treatment of municipal solid waste in City of Belgrade and reduction of environmental pollution and greenhouse gas emissions has begun without environmental loads. Recycling of construction waste has also begun. We are currently constructing a municipal solid waste incineration and power generation plant(waste to energy plant). 7 SDGs certified, with an expected reduction of approximately 210,000 tons of greenhouse gas emissions, and, in 2022, the project obtained Certification of Carbon Credit by Gold Standard.
  • In December 2020, we entered a concession agreement for the development and operation of an Energy-from-Waste (EfW) plant with Dubai Municipality. This is the first EfW project in Dubai and will be one of the largest EfW plants in the world, processing half of municipal solid waste from the emirate per year (1.9 million tons), which is currently under construction.
  • We are aiming to enhance the functions of our initiatives that to capture strong demand for waste management services in light of intensifying environmental regulations in each the industrial sector and the growing awareness of ESG and SDGs more generally in the same way as in the water field.
Energy & Chemicals Company
Ensure Stable Procurement and Supply
Plastic Efforts leading to solutions to social problems Plastic-related environmental response We will contribute to solving social problems (e.g., marine plastics and waste plastics) that urgently require measures with a plastic-related environmental response. Supply environmental materials and establish a recycling/reuse program in collaboration with brand owners. Build a recycling-oriented-model by enhancing our handling of environmental materials and establishing a recycling/reuse program.
  • We developed an eco-friendly paper packing material consisting of nature-derived, biodegradable resins produced by Lactips, a bio startup with Ajinomoto Co., Inc., TOYO INK CO., LTD, and ITOCHU PLASTICS INC. (May, 2022)
  • We have conducted demonstration trial on recycling of plastic beverage bottles with the use of a prototyped traceability system at real FamilyMart store under the BLUE Plastics project. (July, 2022)
  • We have offered recycled ocean plastic waste as a recycled raw material to MITSUBISHI PENCIL CO., LTD., and MITSUBISHI PENCIL has developed a ballpoint pen that partially makes use of this raw material. This product was the first in the stationary industry to receive Eco Mark certification using ocean plastic as a raw material. (July, 2022)
Food Company
Ensure Stable Procurement and Supply
Pollution Prevention and Resource Recycling Supply and use of environmentally friendly resources and materials Fresh food field Through the reduction of food loss, we will contribute to the promote the effective use of the resources and reduce the environmental impacts. The company will brand and commercialize the out-of-spec Dole bananas discarded in Japan and Philippines as Mottainai bananas and distribute them in the market again.
  • Consider diversifying this movement into processed foods and developing new products by using raw materials other than bananas.
  • Aim to increase the volume of the reused bananas.
  • Manufacturing of Banana-derived products using former-waste bananas in the production site(Philippines) is ongoing. (Total banana usage: about 670Tons)
    • Dole National Brand products: Chocolate-coated frozen bananas, Jelly products
    • Dole products with brand license contracts: Ice cream (Lotte), banana-flavored milk (Family Mart), Snacks&Bread (Tokyo Banana, etc)
    • We processed off spec banana, which is supplied to FMPB (“Famimaru”), into puree and supplied the puree for the processed FM foods such as beverage.
  • Promotions are being continued in key locations such as Dean & Deluca and banana juice shops (7days BANANA, BANANA STAND etc).
  • Number of media exposure as of Mar, 2023. end: 1,101
  • Reused Banana as of Mar, 2023. end: about 200,000 bunches (equivalent to 30 tons)
ICT & Financial Business Company
Ensure Stable Procurement and Supply
Pollution Prevention and Resource Recycling Provide products/services that support the realization of a sustainable lifestyle. Reuse / Recycling Business Contribute to the development of a sustainable society by making most of limited resources through the distribution of used mobile phones and tablets in the Japanese market.
  • Expand supply channels in order to realize a sustainable and stable procurement of resources.
  • Reinforce promotional activities in order to raise the awareness of secondhand mobile phones/tablets.
  • Expand product variation and supply channels.
  • Expand distribution outlets.
  • The number of models handled increased from 534 (FYE 2022) to 671 (FYE 2023). (25.6% increase over the previous year)
  • Procurement sources increased from 3 companies (1 country: Japan) in FYE 2022 to 6 companies (3 countries including Japan, Hong Kong, and US) in FYE 2023.
  • As for distribution channels, sales on major EC business operator were launched and maintained a favorable level.

Structures and Systems

Evaluation Methods of Pollution Prevention and Resource Circulation for Each Business Phase

Business Start Phase

For business investment projects that ITOCHU undertakes, the impact of the project on society and environment is evaluated in advance using the ESG Checklist for Investments — a checklist that must be submitted when entering into new business investment projects. For example, it includes monitoring the status of pollution prevention and resource circulation. The project is then only undertaken upon confirming that there are no problems in the results of those investigations.

ITOCHU considers ensuring stable procurement and supply to be a material sustainability issue. We work to effectively utilize and to ensure stable procurement and supply of resources according to demand in each country with consideration for the environment (e.g., biodiversity). In doing this, we are aiming for a recycling-oriented society.

Business Management Phase

ITOCHU conducts annual supply-chain sustainability surveys to assess the environmental and social risks of the products we handle, and requires suppliers to ITOCHU and our consolidated subsidiaries to report on their management practices regarding environmental issues, etc. Through these surveys, we evaluate each supplier’s efforts to reduce its environmental impact and encourage them to implement a PDCA cycle for continuous improvement.

Management of Chemical Substances

The chemicals handled in the Chemicals Division are those that have potentially serious impacts on human health and the natural environment and have become subject to various laws and regulations that aim to ensure appropriate handling across the supply chain – including during manufacturing, sales, transportation, and storage. Furthermore, the appropriate management of chemicals is crucial from a business perspective for our Chemicals Division as well, as violations and cases of non-compliance can impact the regulatory approvals we require on certain products.

There is an international trend to minimize risks at every level of the entire supply chain of chemicals. Against this background, both advanced nations and developing nations have started to introduce new regulations and to make large-scale revisions to existing regulations. Consequently, the regulatory environment in the handling of chemicals is expected to become ever stricter in the future.

We recognize the importance of compliance with laws and ordinances in addition to knowledge of products and the industry as a company that handles chemicals. Our basic policy is that each individual should engage in business in accordance with the requirements of laws and ordinances upon correctly understanding the laws and regulations concerning the products that they are in charge of handling.

Compliance with Laws and Regulations in the Divisions Handling Chemical Substances

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At ITOCHU, the Chemicals Division has cross-functional oversight of our management of chemical substances. This includes oversight of the sales departments that handle chemical substances, which sit within the Chemicals Division, as well as relevant subsidiaries that handle chemical substances. In addition, the Chemicals Division has oversight of any sales divisions and subsidiaries outside of their direct control if chemical substances are used.

We strive to comply with laws and regulations through a management method based on a combination of thorough inquiries to specialized external consulting organizations and the use of a centralized management system to track environmental legal compliance. The management system was developed internally in 2016 and allows us to confirm and record applicable laws and measures at the chemical substance level for each product. We also provide training and educational opportunities to relevant sales staffs, supplemented by e-learning materials and handbooks that summarize the main points of relevant laws.

The external consulting organization that we currently employ for chemical substance management is Techno Hill Co., Ltd. (Headquartered in Chuo-ku, Tokyo; Representative Director: Kazuyuki Suzuki). Techno Hill has comprehensive knowledge regarding the field of chemical substances and provides us with informed advice on management systems, applicable laws and regulations for each product, and general trends movements in the industry.

In order to maintain and improve the abilities of each person in charge at a high level, we distribute its own handbook on chemical-related regulations to all persons in charge. There are 32 laws and regulations covered in this handbook, each of which outlines important aspects of compliance requirements. The purpose of this handbook is to educate our employees, especially new recruits and sales personnel, on the laws and regulations specific to the chemical industry.

By taking these initiatives, in FYE 2023, there were no major violations caused (e.g. license suspensions).

Management Structure for Emergency Response and Accident Response

ITOCHU responds as below in accordance with our accident and emergency response regulations.
If an accident occurs during the handling or storage of toxic or hazardous substances, we respond as follows in line with the Pharmaceutical Key Toxic and Hazardous Substance Risk Prevention Procedures Manual.

  • We will make reports as necessary according to the emergency contact network in the above manual. In addition, we will take prompt action to limit the risks caused by toxic and hazardous substances.
  • In the event of splashing, leaking, outflow, seepage or penetration underground, we will immediately notify the health care center, police station or fire department to that effect when there is a fear of a risk to the health of an unspecified or large number of people. At the same time, we will take measures to prevent risks to health.

Initiatives

RENU ® Project Aims to Realize Circular Economy

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In the spring of 2019, we launched a project called the RENU® project (“RENU”), which aims to address the issue of excessive waste in the fashion industry and realize circular economy. As its first product, we are developing recycled polyester made from textiles such as waste leftover fabric and used clothing. We will contribute to realize circular economy by developing this project through the entire supply chain of the fashion industry from raw materials to consumers.

Refer to: RENU ® project website [open in new window]

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RENU Aims for a Closed Loop Economy

Environmental Impact

The environmental impact of handling recycled polyester at RENU project is as follows.

FYE 2021 FYE 2022 FYE 2023*
Feedstock equivalent to T-shirt

3.5 million pieces of
T-shirts

6.0 million pieces of
T-shirts

6.3 million pieces of
T-shirts

Reduced CO2

521 tons

893 tons

1,931 tons

Reduced Water

875 kiloliters

1,500 kiloliters

6,500 kiloliters

  • Adopted LCA for FYE 2022

Expansion of the Textile Collection Service for a Circular Economy

ITOCHU Corporation and Ecommit Corporation, which develops resource circulation businesses through reusing and recycling, have signed an agreement to expand the textile collection service “Wear to Fashion” in the Japanese market. Starting spring 2022, the service will gradually be offered to all companies and local governments in Japan. As of January 2023, we are collecting textiles from about 1,000 locations. We plan to collect approximately 6,000 tons of textiles in FYE 2025.

With this new initiative as a part of the RENU Project aimed at solving a problem in the textile and fashion industries, textile products coming out of various sites will be collected and sorted through combining ITOCHU’s network in the textile and fashion industries and Ecommit’s system from collection to resource circulation. Reusable products will be reused utilizing Ecommit’s knowledge, and recyclable polyester products will be made into RENU. In doing so, the amount of discarded textile products will be reduced as much as possible and aims to realize a circular economy.

Leading UK for Collecting and Recycling Casing Tyres

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Pro gran Crumb Rubber made by casing tyres

Murffits Group Limited, a company under ITOCHU subsidiary European Tyre Enterprise Limited, collects and processes casing tyres in the UK each year. Using the recovered material it manufactures a range of recycled products such as rubber crumb products for sports surfaces, pathways, children’s playgrounds, carpet underlay, modified asphalt and many other industrial applications. Its products are exported to markets across the globe.

Murfitts also has been developing and commercializing a proprietary pyrolysis technology, which decompose the tyre feedstock at high temperatures in a vacuum in order to recover various high-value materials such as carbon black and recycled fuel oil. This technology will help promote sustainability initiatives in the tyre industry by replacing one of major raw materials of tyres, carbon black, with a recycled product.

ITOCHU Announces Development of Garbage Bag Made from Ocean Plastic Waste

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Garbage Bag Made from Ocean Plastic Waste

ITOCHU believes that ocean waste is a significant social challenge and has been engaging in material recycling businesses, recycling ocean plastic waste and turning it into products that are commercialized. In cooperation with Tsushima city, we have succeeded in the recycling. Our subsidiary, Sanipak Company Of Japan, Ltd., leveraging the knowledge and technology it possesses as Japan’s largest garbage bag maker, has developed the world’s first* garbage bag made in part with raw materials made from ocean plastic waste.

ITOCHU and Sanipak Japan have provided some of these new garbage bags free of charge to Tsushima city and other areas that need garbage cleaning activities on their coastlines, and will establish a recycling economy-oriented business model to resolve the problem of marine debris that society faces.

  • According to research by ITOCHU

Develop Environmentally-friendly Garbage Bags “nocoo”

[Photo]
“nocoo” environmentally-friendly garbage bags

Sanipak Company of Japan Ltd., a subsidiary of ITOCHU, has developed “nocoo” environmentally-friendly garbage bags that reduce carbon dioxide emissions. The use of natural lime stone as a raw material for nocoo reduces plastic use by approximately 20% and reduces carbon dioxide emissions during the manufacture and combustion of garbage bags by approximately 20% compared to 100% polyethylene garbage bags. In FYE 2023, sales of nocoo in the 47 prefectures of Japan totaled 5,117 tons, contributing to a reduction in plastic use of 1,177 tons and a reduction in carbon dioxide emissions (when incinerated) of 3,213 tons.
With nocoo, we will continue to address environmental issues that are familiar to everyone, such as reducing carbon dioxide emissions through regular garbage disposal.

Refer to: nocoo website[open in new window] (Japanese only)

Introduction of Shopping Baskets and Collection Box Using Ocean Plastic Waste as the Raw Material in FamilyMart Stores around the Nation

ITOCHU has developed shopping baskets made using ocean plastic waste washed ashore in Tsushima in Nagasaki Prefecture as part of the raw materials together with FamilyMart Co., Ltd. and TerraCycle Japan GK. We have introduced these shopping baskets into a total of 27 FamilyMart stores (as of the end of March 2023) in Tsushima and Iki in Nagasaki Prefecture and elsewhere since February 2021. Also, we have developed a food collection box that is partially made from ocean plastic waste that drifted ashore for the FamilyMart Food Drive program. ITOCHU rolled out this collection box to over 2,000 FamilyMart stores (as of the end of March 2023) around the nation to promote community-based SDGs activities.

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Initiatives to Introduce Environmentally-friendly Packaging in FamilyMart Stores

FamilyMart, a subsidiary of ITOCHU, has set goals of increasing the ratio of environmentally-friendly containers and packaging* to 60% by 2030 and 100% by 2050, as part of its efforts to curb plastic use in FamilyMart Environmental Vision 2050.

By changing the specifications of containers and packaging, FamilyMart is working to reduce the amount of petroleum-based plastics used in the raw materials of containers and packaging and to promote the use of environmentally-friendly materials. We will continue to work toward achieving our 2030 and 2050 targets with the understanding and cooperation of our suppliers and consumers.

  • Containers and packaging made from materials including plant-based biomass plastics and recycled PET
Major Initiatives in Environmentally-friendly Packaging
Details of Initiatives Reduction in Use of Plastics
All salad containers are made of environmentally-friendly materials such as biomass plastic. Reduction of about 900t per year
Containers of private brand natural water are gradually replaced with recycled PET plastic bottles made from 100% recycled PET resin. Estimated reduction of about 260t per year
  • For hand-rolled rice balls, all product packaging films have been replaced with biomass polypropylene (bio-PP) blend materials.
  • The sandwich packaging has been thinned and the shape of header has been changed from square to trapezoidal.
Reduction of about 19t per year
Some containers of pasta products contain bio-PP, which has obtained ISCC certification.

Effort to Reduce Plastics at Convenience Stores

In accordance with the Act on Promotion of Resource Circulation for Plastics that went into effect in April 2022 in Japan, FamilyMart has set a goal of reducing the amount of petroleum-based plastics use by FYE 2031 by 50% from FYE 2020 level, and is working to reduce the amount of plastic spoons, straws, and other items distributed to customers who purchase boxed lunches, desserts, beverages, and other items.

Results of Major Initiatives to Reduce the Use of Certain Plastic Products
Start Year Details of Initiatives Reduction in Use of Plastics
2021~
  • Design of the handle of the plastic spoon was changed.
  • In principle, we stopped offering plastic forks. (We continue to offer chopsticks as an alternative or fork if desired)
  • Reduction of about 12% per year
  • Estimated reduction of about 250t per year
2022~ FamilyMart launched the "Convenience Wear Blue Green" project to sell products made with environmentally-friendly materials, such as washable and reusable cutlery sets, open-and-wash straws, and spoons and forks made with biodegradable biopolymers.

Collaboration to Introduce Renewable Biomass Polypropylene in the Japanese Market

Japan has formulated a basic strategy to introduce approximately two million tons of biomass-based plastic products by 2030 as a countermeasure against ocean plastic waste and climate change.

ITOCHU has reached an agreement with Borealis AG (Borealis) and Borealis AG and Borouge Pte Ltd. to introduce biomass polypropylene (bio-PP) derived from renewable resources and develop its business in the Japanese market. Borealis, one of the world's leading manufacturers of plastic resins, began commercial production of bio-PP in March 2020 and has been expanding sales to Europe and the rest of the world.

We target to commercially launch food containers and packaging materials made of bio-PP. FamilyMart initially in Japan began replacing some of its pasta containers made with bio-PP. We are also working to develop products in a diverse range of fields, including sanitary products, household goods, cosmetics containers, office supplies, home appliances, and automobile parts.

ITOCHU has obtained ISCC PLUS certification for the domestic sales of Borealis bio-PP manufactured by the mass balance method. This certification proves sustainable raw material procurement in a way that can be traced through the supply chain, and the portion of biomass raw material contributes to GHG emissions reduction.

The Cooperative Development of Material Recycling Technology for Multi-layer Film Packaging

ITOCHU Corporation has entered into an agreement for cooperative development of material recycling technology for multi-layer film packaging with Toyo Ink SC Holdings Co., Ltd.

In 2019, Toyo Ink Group developed a technology to separate the ink, adhesive, etc. that make up the multi-layer film or packaging in cooperation with the world’s largest environmental solutions company. A demonstration pilot plant started operation at the end of 2022, and, moving forward with LCA (Life Cycle Assessment) appraisals, cost simulations, and other verifications. Toyo Ink Group plans to start a post-industrial recycling business in 2023, and aim to start the business under commercially conditions by 2025.

In addition to acquiring exclusive marketing rights in Japan and first refusal rights in Asia and Europe related to major product materials related to this technology, we will widely provide environmental solutions to food and consumer products company, retailers, brand owners, and more through requests to build structures for material recycling using this technology and to design recyclable, environmentally-friendly packaging.

Through this initiative, both companies will make currently un-recyclable multi-layer film packaging into a recyclable product, aiming for a more than 40% material recycling rate in Japan and abroad.

The Recovery of Nylon Waste to ECONYL® Nylon Products

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ITOCHU Corporation and Aquafil S.p.A. have concluded capital and business alliance to promote and expand the businesses of circular nylon production.

Nylon is used for textiles and plastic materials made through petrochemistry in a range of fields such as fashion, carpeting, fishing, food packaging, and automobiles. However, many products use nylon blended with other materials in a compound form, making it a difficult material to be recycled.

[Photo]

In 2011 Aquafil created its ECONYL® Regeneration System that turns recovered nylon waste such as fishing nets, carpets and post-industrial waste back to caprolactam (CPL), a crude raw material. Through its proprietary chemical recycling technology, Aquafil eliminates impurities completely, to achieve regenerated nylon product having the same features of the virgin quality materials. ECONYL® nylon is made completely from waste, which enables up to 90% CO2 reduction compared to conventional nylon made from petroleum.
ITOCHU will leverage on its Group’s diverse network and expand sales for applications in fashion, carpeting, automobiles, and packaging materials. In February 2022, YKK, which is a global leader in the manufacturing and sale of zippers, Aquafil and ITOCHU are jointly developing environmentally friendly recycled zippers and recycled buttons.

Moreover, ITOCHU plans to enforce Aquafil’s nylon recovery scheme using its existing sales chain and will also implement the Partnership from the perspective of the stable supply of raw materials to Aquafil. Through its collaboration from the recovery of waste to the sale of Aquafil’s products, ITOCHU aims to expand the businesses of nylon circularity.

Verification of the Value of Traceability in the Recycling of Plastic Bottles

ITOCHU Corporation, ITOCHU Plastics Inc., FamilyMart Co., Ltd. and Asahi Kasei Corporation are conducting a demonstration trial (hereinafter “the Trial”) on recycling of plastic beverage bottles with the use of a prototyped traceability system at real FamilyMart store under the BLUE Plastics project in September 2022. BLUE in the project’s name is an acronym for Blockchain Loop to Unlock the value of the circular Economy.

It has been difficult for consumers to learn about the recycling chain of collected plastics and about what products are derived from such plastics. The purpose of the Trial is to investigate whether or not the visualization of the plastic bottle recycling chain will change consumers’ behaviors and what impact it will have on the reuse of recycled plastics and assess the value of the traceability. To do so, we developed and provided a smartphone app which enables to trace the progress of recycling collected plastic bottles from being placed in the recycling bin to being processed into recycled material.

[Figure]

Through a series of activities including the Trial, we will verify the value of traceability ensured by the digital platform and push further ahead plastic resources recirculation.

The License Business of Polyester Chemical Recycling Technology

ITOCHU Corporation, Teijin Limited, and JGC Holdings Corporation have signed agreement to establish a joint venture company, RePEaT Co., Ltd. (hereinafter “RePEaT”), to license technology for the chemical recycling of polyester products.

In response to urgent needs to counter global warming, the fiber and textile industry is working on measures, including the establishment of ecosystems for resource recycling, to address issues such as CO2 emissions from manufacturing processes and the mass disposal of used clothing. Currently, disposed textile products are used as a heat source (thermal recovery) or as raw materials for the production of other products (material recycling). Chemical recycling, however, is a revolutionary method of chemical decomposition for textile recycling that turns used textile products into new textile raw materials.

RePEaT will license recycling technology by taking advantage of Teijin’s proprietary chemical recycling technology, the expertise of JGC derived from its global engineering business, and ITOCHU’s extensive network of textile industry players. Customers in Japan and other countries are expected to launch the cost-effective chemical-recycling business for the production of polyester materials.

In addition, RePEaT will provide consulting services to help customers establish ecosystems that collect used polyester fiber products for reuse as raw materials, thereby contributing to a more sustainable world through recycling.

Number One Trader in the World for the Cement Substitute of Blast Furnace Slag

[Photo]
Structure Made with Blast Furnace Slag

Blast furnace slag is a by-product of the steelmaking process. Mixing and using it with cement as a cement substitute makes it possible to save natural resources (e.g., limestone – the raw material of cement). It is an environmentally friendly product that can reduce the CO2 generated during manufacturing by about 40%* compared with when making concrete only with cement.

It is highly durable against seawater and the steel material in it is less likely to suffer corrosion over a long period of time. Therefore, it is widely used in large civil engineering projects at ports.

We have been selling blast furnace slag produced in Japan and overseas in around 10 countries since about 20 years ago. We handle of volume of blast furnace slag that makes us the number one trader in the world for it. In the future, value for blast furnace slag will be expected to rise affected by trend of decarbonization around the world. Therefore, we moreover focus to build continuous and stable distribution channels and consider investing and participating in the slag business.

* Calculated at a 55:45 ratio for cement and blast furnace slag

Collaboration with Outside Initiatives

Compliance with the Containers and Packaging Recycling Law

ITOCHU understands our own manufacturing and import volume of containers and packaging every year to recycle containers and packaging. We then pay a recycling fee to the Japan Containers and Packaging Recycling Association. The aim of this is to contribute to promoting the formation of a recycling-orientated society as a specified business operator prescribed by the Containers and Packaging Recycling Law.

The Recycling Fee We Pay Every Year

(Unit:Yen)

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Fiscal Year FYE 2017 FYE 2018 FYE 2019 FYE 2020 FYE 2021
Recycling Fee / Contribution Fee Recycling Contribution Total Amount Recycling Contribution Total Amount Recycling Contribution Total Amount Recycling Contribution Total Amount Recycling Contribution Total Amount
Glass Bottles Colorless

814,414

0

814,414

704,782

9,344

714,126

750,030

0

750,030

813,659

0

813,659

925,650

0

925,650

Brown

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Other Colors

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

PET Bottles

708

68

776

-

-

-

-

-

-

-

-

-

-

-

-

Paper Containers and Packaging

18,306

168

18,474

29,327

102

29,429

9,045

27

9,072

15,288

4

15,292

10,168

0

10,168

Plastic Containers and Packaging

631,798

47,052

678,850

1,057,941

0

1,057,941

1,197,091

0

1,197,091

1,463,900

4,537

1,468,437

2,432,519

0

2,432,519

Total

1,465,226

47,288

1,512,514

1,792,050

9,446

1,801,496

1,956,166

27

1,956,193

2,292,847

4,541

2,297,388

3,368,337

0

3,368,337

Food Recycling

ITOCHU makes regular reports on the amount of food we discard and the amount we recycle in Japan to comply with the Food Recycling Law. We are striving to suppress the generation of waste and to promote recycling (e.g. conversion into feed) in line with the reference rate (recycling rate target).

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Food Recycling Rate
FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023
Quantity recycled

Amount of food waste generated (Unit: t)

869.0

992.8

1,125.8

955.9

939.4

Amount of recycling
(Unit: t)

454.9

744.4

775.5

762.0

854.6

Amount of disposal
(Unit: t)

414.1

248.4

350.3

193.9

84.8

Target (recycling rate target by individual food related operator)

Reference rate

77.8%

78.8%

79.8%

80.8%

80.8%

Percentage recycled

Recycle rate*1

52.3%

75.1%

68.9%

81.9%

91.0%

  1. Recycle rate is calculated as in below formula defined by the Ministry of Agriculture, Forestry and Fisheries.
    (Amount of suppressed waste (vs FYE 2008) + Amount of recycling + Amount of heat recovery × 0.95 + Amount of weight reduction) / (Amount of suppressed waste (vs FYE 2008) + Amount of waste food generated)
  • FYE 2024 recycling rate target: 80.8%

Initiative Participation (Activities Through Business and Industry Groups)

ITOCHU is participating in the Global Environment Subcommittee of the Committee on Environment and Safety – an environment and energy related committee of the Japan Business Federation (Keidanren). We are working to realize an environmental policy compatible with the economy (e.g., through promotion of voluntary action plans, and measures for global warming, waste and recycling and environmental risks including water management). We are also participating in the Global Environment Committee of the Japan Foreign Trade Council. We are striving to build a decarbonized society, construct a recycling-orientated society, and to support environmental related laws and regulations. The goals set by the Global Environment Committee are as follows.

Reduction Target for FYE 2026 in Domestic Business Activities (Trading Company Industry)

  • Disposal Amount: Reduce 82% compared to FYE 2001
  • Generation Amount: Reduce 62% compared to FYE 2001
  • Recycling Rate: 83% or more