Promoting resource circulation

Basic Policy

Alps Alpine’s business activities rely on a wide range of mineral and water resources, and we recognize that the sustainable use of these natural capital resources is a prerequisite for our operations. To prevent resource depletion and reduce environmental burden, we have identified “promoting resource circulation” throughout the product lifecycle as a material issue. We aim to contribute to a circular economy by revising our eco-design standards, such as product recyclability and ease of disassembly, and by improving resource efficiency in our production activities.

Formulating Eco-Friendly Product Standards

Until now, we have evaluated environmental considerations during the product design phase using a “product assessment sheet.” However, as environmental issues become increasingly serious, we have come to recognize that evaluating only at the design stage is insufficient for achieving optimal environmental out-comes. Therefore, we are currently developing new “eco-friendly product standards” that enable environ-mental impact evaluation across the entire product lifecycle. These standards will also be organically linked with other environmental initiatives to build a consistent framework of action.

Eco-Friendly Product Evaluation Standards Based on the Product Lifecycle

Waste Reduction and Recycling Promotion

As a result of many years of effort to reduce waste and increase recycling, the recycling rate (including thermal recovery) reached 95% in FY2024, demonstrating tangible progress. To further improve the quality of resource circulation, we reviewed our key initiatives in preparation for the Mid-Term Business Plan 2027.
Plastics and metals, which account for 53% of our waste, must shift from thermal recovery to material recycling, which reuses the raw materials themselves. This requires more precise waste sorting. Accordingly, we have revised our key focus to “improving the material recycling rate” and are working to foster awareness and action among individual employees regarding resource circulation.

Key Action Points Moving Forward

• Waste reduction in upstream processes
• Improving material recycling rate

Water Resource Management

We primarily use municipal water, with minimal dependence on ground-water, resulting in limited water stress risk. Only a portion of our plants use water in their production processes, but from the perspective of sustainable resource use, we have set water reduction targets and are promoting Companywide initiatives. In FY2024, we achieved an 8% reduction in water intake through measures such as reducing pure water use during idle times and utilizing recycled water.
On the other hand, since some of our suppliers use large amounts of water, we will begin supplier engagement on water resource management in FY2025 to help build a sustainable supply chain.

Key Action Points Moving Forward

• Promoting reduction in water Withdrawal
• Promoting use of recycled water

• Climate change adaptation and mitigation
• Promoting resource circulation
• Pollution Prevention & Chemical Substance Management
• Conservation of Natural Capital
• TCFD-Based Information Disclosure
• Environmental Data