Circular Economy｜Solving Social Issues through Business

RT: Rising Transformation
Strategic growth enabled by capturing tectonic social changes

*Affiliations and titles as of August 2024

Main Services

Fuyo Circular Economy Lease (Fuyo CE Lease)
Waste recycling services
Used asset buying service

Strong Point

Expertise and knowledge concerning the reuse and recycling of tangible property, obtained from handling a massive amount of lease assets (equipment) over many years
Possesses infrastructure and networks that connect the value chains of the manufacturing sector (forward logistics) and the reuse and recycling sector (reverse logistics)
Insights into global trends in the circular economy market through the Ellen MacArthur Foundation and industry groups

Plans under Fuyo Shared Value 2026 and Vision for 2030

Vision for 2030

12 Responsible consumption and production

Serve as a Circular Economy infrastructure company that transcends the leasing business
～Become a Circular Economy Platformer
Contribute to the realization of resource recycling in Japan through our circular economy projects
～Fuyo CE Lease will help to recycle a certain volume of resources in Japan
～Generate economic benefits by promoting resource recycling

Plans under Fuyo Shared Value 2026

1.

Expand sales of Fuyo CE Lease as a core product that allows customers to easily take part in resource circulation by broadening the range of eligible equipment and improving resource circulation capabilities.
2.

Achieve a 100% recycling rate of waste plastics (excluding thermal recycling) and create new value using such expertise and knowledge.
3.

Aim to be a Circular Economy Platformer by transforming the CE infrastructure and network developed through the leasing business into an ecosystem.

FY2023 in Review

The Fuyo Lease Group launched Fuyo Circular Economy Lease (Fuyo CE Lease) in 2023 as a lease product to manage lease assets, extend product life after use and improve resource recycling. Since launch, the number of Fuyo CE Lease contracts has risen steadily.
Also, to promote the adoption of circular economy practices nationwide, we concluded business agreements with seven leasing companies that have regional networks.
Fuyo CE Lease enables customers to get involved in establishing a circular economy, and we donate a certain percentage of proceeds from the lease transactions to organizations that promote the circular economy, thereby supporting their activities and contributing to the spread of the circular economy.

Non-financial targets

	2023/3	2024/3	March 2027 targets
Percentage of returned items that are reused or recycled^*(Including thermal recycling)	100%	100%	100%
Percentage of materials/chemicals contained in waste plastics (from returned items) that are recycled^*	24.7%	45.3%	100%

*

Applies to leased (rental) items returned to the Hachioji Technical Center of FGL Circular Network Co., Ltd.

Issues Ahead and Response Measures

Issues Ahead	Response Measures
Expand the coverage of Fuyo CE Lease	Increase the scope of assets such as equipment and devices for which resource circulation is assured
Diversify recycling processes to achieve a 100% waste plastic recycling rate (excluding thermal recycling)	Develop links with recycling companies compatible with asset characteristics
Expand the type and volume of assets handled by the Fuyo Reuse Center	Expand network of business partners and develop new buyers

TOPICS

1. Awarded the Circular Economy Award at the 5th ESG Finance Award Japan

At the 5th ESG Finance Awards Japan, Fuyo Lease Group received the Circular Economy Award for outstanding efforts in the circular economy, a key area of focus for Japan's Ministry of the Environment.
The award recognized the Group's initiatives to promote the circular economy from the standpoint of the leasing industry, including our efforts to achieve a 100% recycling rate for materials/chemicals contained in waste plastics (by fiscal 2026), one of our non-financial targets, and the launch of Fuyo CE Lease to ensure resource recycling, extend product life, and improve resource recycling.

Conceptual Diagram of Fuyo CE Lease

The purchasing phase, in which raw materials are manufactured (Production) and used (Use), makes regular donations to organizations that promote CE. The effective utilization phase, in which the use (Use) is eliminated as waste or reused and recycled (Recycling), is used to regenerate the reused and recycled materials into production (Production) and reuse them for use (Use). Use refers to the period during which the Fuyo Lease Group holds the materials as lease assets and the customers use them.

Received the Circular Economy Award at the 5th ESG Finance Award Japan

Right: Tetsuo Kitagawa, Chairperson of the Selection Committee
Left: Hiroaki Oda, President and Representative Director, Fuyo General Lease

2024 ESG FINANCE AWARDS JAPAN CIRCULAR ECONOMY

2. Extending Product Life and Enhancing Product Value With Fuyo Reuse Center – Our New Reuse and Resale Base

Three Group companies (Fuyo Auto Lease Co., Ltd., FUJITA Co., Ltd. and FGL Circular Network Co., Ltd.) jointly opened the Fuyo Reuse Center.
The aim of the center is to strengthen the Group's reuse and resale functions by creating a single collection point for leased assets returned to Fuyo Lease Group companies and for used assets purchased from customers.
Previously, recovered assets were mainly resold in their current condition, but by equipping the center with a maintenance yard, we aim to extend product life and enhance product value to help realize a circular economy.