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Environment

Building a Circular Economy

Building a Circular Economy

EnvironmentContributing Toward the Building of the Circular Economy

Strategy

In accordance with the spirit grounded in “Fairness, Innovation and Harmony,” the Marubeni Group is proudly committed to social and economic development and safeguarding the global environment by conducting fair and upright corporate activities as our Management Philosophy. The Marubeni Group’s long-term strategy is to put our Management Philosophy into practice and to create value and grow by anticipating the challenges of customers and society and providing solutions.

The challenges faced by customers and society are diverse and constantly evolving. To stay ahead of these changes, the Marubeni Group continues to evolve, using four key aspects of diversity—1. human capital, 2. regions, 3. sectors, and 4. business models—as important differentiators. This is major strength and source of value creation for the Marubeni Group. To further enhance this strength, we have identified the “Fundamental Materiality (1. Human Capital That Creates New Value, 2. Robust Management Foundations, 3. Governance That Supports Coexistence with Society)” and are committed to its continuous strengthening.

Contributing Toward the Building of the Circular Economy is a key factor that impacts the growth of the Marubeni Group and, as such, has been identified as one of the issues under “Environmental & Social Materiality.” The Marubeni Group recognizes that the transition from a linear economy and reducing the risk of resource depletion are vital for realizing a sustainable future. By working together with our stakeholders to build a sustainable society, for example through effectively utilizing of resources, enhancing sustainability, and improving the efficiency of energy usage, we can build a sustainable business model that will achieve further growth and development for the Marubeni Group.

For details on “Fundamental Materiality” and “Environmental & Social Materiality,” please refer to the Materiality for the Marubeni Group.

The following, with some exceptions, is based on the information available as of September 2025.

Major Initiatives

The Marubeni Group, referencing the Butterfly Diagram (Source: Ellen MacArthur Foundation), defines five processes illustrating the circulation of finite materials as its “Contributing Toward the Building of the Circular Economy” and is advancing initiatives accordingly.

© Ellen MacArthur Foundation, (Circular economy system diagram, 2019)

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Five Processes
1. Share
  • The use of a product by multiple users. It is a practice that retains the highest value of a product by extending its use period.
2. Maintain/Prolong
  • Keep a product in its existing state of quality, functionally and/or cosmetically, to guard against failure or decline. It is a practice that retains the highest value of a product by extending its use period.
3. Reuse/Redistribute
  • Reuse: The repeated use of a product or component for its intended purpose without significant modification. Small adjustments and cleaning of the component or product may be necessary to prepare for the next use.
  • Redistribute: Divert a product from its intended market to another customer so it is used at high value instead of becoming waste. For example, a supermarket can redistribute surplus edible food to a food-bank.
4. Refurbish/Remanufacture
  • Refurbish: Return a product to good working order. This can include repairing or replacing components, updating specifications, and improving cosmetic appearance.
  • Remanufacture: Re-engineer products and components to as-new condition with the same, or improved, level of performance as a newly manufactured one. Remanufactured products or components are typically provided with a warranty that is equivalent to or better than that of the newly manufactured product.
5. Recycle
  • Transform a product or component into its basic materials or substances and reprocessing them into new materials. Embedded energy and value are lost in the process. In a circular economy, recycling is the last resort action.

1. Share (Click here to view the five processes)

Aircraft Leasing Business

Finance, Leasing & Real Estate Business Division

Since 2013, Marubeni has been Aircastle Limited’s largest shareholder and has supported its growth by seconding management personnel and through other initiatives. Aircastle has steadily built a portfolio of high-quality assets while maintaining an investment-grade credit rating.

Aircastle operates a global platform that leases aircraft to airlines worldwide, with a primary focus on used aircraft—a segment that demands specialized expertise. Managing used aircraft requires careful assessment of maintenance condition and residual value risk, and Aircastle has strong capabilities in aircraft appraisal and asset management.

Leveraging its solid industry presence, long- standing customer relationships, disciplined asset management, and stable access to funding, Aircastle acquires and disposes of aircraft nimbly. This enables it to respond promptly to diverse customer needs while continuously strengthening its platform.

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Container and Pallet Material Circulation Business in International Logistics

IT Solutions Division

Marubeni Logistics Corporation has established mechanisms (Container Round Use, Pallet Round Use) to share maritime containers and pallet materials used internationally among different shippers. These initiatives contribute to reducing environmental impact in the logistics sector for building sustainable supply chains and addressing issues such as the so-called “2024 Problem.”

(1) Container Round Use*1

Marubeni Logistics Corporation, Bridgestone Cycle Corporation, and FineToday Co., Ltd. have jointly started full-scale operations of “Container Round Use” among different importers and exporters in October 2023, as an initiative to reduce environmental impact in logistics and address issues such as the “2024 Problem” (truck driver shortages due to new overtime regulations) while building sustainable supply chains.
This initiative, under a scheme established by Marubeni Logistics, involves directly transporting containers used by Bridgestone Cycle for importing bicycle products and parts from China to FineToday’s logistics hub for use in exporting products to China. This eliminates the need for empty container return and delivery trips between each company’s facilities and the Port of Tokyo, achieving more efficient logistics (see “Initiative Overview Diagram” below).

  • An initiative to transport empty containers directly to exporting companies for reuse as export containers after unloading imported containers, instead of returning them to the port.
Initiative Overview Diagram

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(2) Pallet Round Use

Marubeni Logistics Corporation, FineToday Co., Ltd., and Japan Pallet Rental Corporation have collaboratively launched “Pallet Round Use” with their U.S. partner company, utilizing domestic rental pallets for loading/unloading, transportation, and storage in product logistics, matching exports and imports between two shippers across Japan and China, and circulating these pallets overseas.

In Japan, a circulation scheme for rental pallets across manufacturers, wholesalers, and retailers has been established. This initiative involves circulating domestic rental pallets for exports and imports without transfer to overseas pallets, matching product exports and imports between two shippers to contribute to efficient international logistics.

Additionally, as a contribution to addressing the 2024 Problem, eliminating the need for transfer to overseas pallets for FineToday’s exports to China could reduce truck driver waiting times by up to 5,000 hours*2. Furthermore, this four-company collaboration eliminates the disposal of disposable overseas pallets for FineToday and the pre-transport of empty pallets for exports to Japan by the U.S. partner company, contributing to CO2 emission reductions.

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  • Transfer from domestic rental pallets to disposable export pallets and rewrapping films to prevent load collapse previously required up to 5 minutes per pallet, with an estimated annual workload of approximately 60,000 pallets.
Overview Diagram of Round Use of Domestic Pallets

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2. Maintain/Prolong (Click here to view the five processes)

Fleet Management Service Business for Corporate EVs

Aerospace & Mobility Division

Marubeni and Panasonic Holdings Corporation (Panasonic HD) have established EVolity Corporation to provide fleet management services for corporate electric vehicles (EVs). Through supporting corporate clients from adoption and operation to secondary use, EVolity contributes to climate change mitigation and the realization of a circular economy.

EVolity provides a digital management system compatible with multi-brand vehicles and chargers, offering one-stop support for corporate EV adoption and operation. It supports daily operations with a real-time fleet and charging management service for vehicle location and charging status, while utilizing Panasonic HD’s battery degradation diagnostic technology to provide range prediction and anomaly detection. In partnership with collaborating companies, EVolity leverages Panasonic HD’s battery degradation diagnostic technology to develop solutions that enhance the value of EV secondary use, establish EV leasing with accurate residual value assessments, and implement preventive maintenance for EVs, striving to maximize value across the EV lifecycle and contribute to a circular economy.

EVolity leverages Marubeni’s expertise and sales infrastructure in the mobility and EV sectors, combined with Panasonic Group’s battery-related expertise in the battery degradation diagnostic technology, grounded in the battery material expertise unique to a leading battery manufacturer, to provide not only current battery degradation diagnostics but also future lifespan predictions. With an eye toward the secondary use of EVs and automotive batteries, it aims to build a circular economy model. By comprehensively supporting corporate EV adoption, it contributes to environmentally conscious business activities and enhanced corporate value.

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3. Reuse/Redistribute (Click here to view the five processes)

The Land-Based Recirculating Aquaculture Business

Food & Agri Business Division

Danish Salmon A/S (Denmark)

Marubeni is promoting initiatives related to Atlantic salmon in the land-based recirculating aquaculture system (RAS: Recirculating Aquaculture System) both domestically and internationally.

Due to population growth, improved dietary quality in emerging countries, and increasing health consciousness in developed countries, global demand for salmon is expected to rise. However, the supply of wild and sea-based farmed salmon is reaching its limit due to ecosystem conservation and limited suitable regions for sea-based aquaculture. Under these circumstances, RAS is expected to be a means of sustainably and stably supplying aquatic products, which is not constrained by geographical limitations with low environmental impact, reducing impacts on surroundings and ecosystems such as water pollution and fish escape.

Marubeni aims to expand environmentally conscious food businesses and contribute to a stable food supply.

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Used Smartphone Reuse Business

Lifestyle Division

IOSYS outlet (Shinjuku West Exit)
IOSYS outlet (Osaka Trade-in Center)

Marubeni has invested in IOSYS Holdings Co., Ltd., the parent company of IOSYS Co., Ltd., which operates an IT device purchase and sales business including smartphones and PCs, to promote initiatives in the consumer smartphone reuse business.

In recent years, the smartphone reuse market has seen rapid expansion due to rising interest driven by the increasing prices of smartphones themselves. Additionally, the reuse of smartphones promotes a circular economy, and the expansion of the reuse market contributes to reducing environmental impacts. Against this background, Marubeni has been engaged in the reuse business for smartphones, PCs, and other devices for corporate clients through its subsidiary, Mobile Care Technologies, Co., Ltd.

IOSYS has been involved in the reuse business for IT devices since its foundation in 1996. Currently, IOSYS purchases smartphones and other devices from individual consumers and corporations in Japan, performs data erasure and inspections, and then sells them to domestic individual consumers and domestic and overseas corporations, through its domestic stores and e-commerce website.

Marubeni will leverage IOSYS’s services and products tailored to diverse consumer needs, combined with Marubeni’s extensive network of business partners, to strengthen and expand the used smartphone reuse business.

【Related Information】

Used Solar Panel Reuse and Recycling Business

Power & Infrastructure Services Division

Marubeni and HAMADA Co., Ltd. have established a new company, Rexia Corporation, which has started to provide reuse and recycling-related services involving the sale, purchase, and disposal of used solar panels.

Reuse:To date, initiatives to reuse used solar panels have stalled in Japan due to difficulties in guaranteeing their quality and warranty. Rexia purchases panels that have been determined to be reusable through an established performance inspection methodology. It subsequently sells these panels under a product warranty scheme, providing defect liability insurance instituted through its partnership with a major insurance company.

Recycle:Used solar panels unsuitable for reuse due to damage or significant deteriorations in performance have conventionally been disposed of in landfills. Rexia promotes the collection and recycling of used solar panels unsuitable for reuse by separating their materials into glass, cell sheets, and other resources.

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4. Refurbish/Remanufacture (Click here to view the five processes)

Battery Business Through Secondary Use of Automotive Batteries

Power & Infrastructure Services Division

Energy storage facility using EV batteries

Marubeni has invested in B2U Storage Solutions, Inc. (B2U), which develops grid-scale battery businesses*3 using used automotive batteries in California, USA.
B2U develops container-type batteries that efficiently reuse batteries used in electric vehicles for stationary applications, providing energy storage services for grid stabilization. B2U’s proprietary technology enables low-cost and easy secondary use of used automotive batteries as stationary batteries without disassembly, reinspection, or repackaging.

With the global spread of EVs, the appropriate reuse and recycling of rapidly increasing used automotive batteries for resource efficiency has become a significant social issue. Additionally, California is one of the world’s leading regions for renewable energy resource adoption, and the massive introduction of solar power facilities has led to surplus power during daylight hours and shortages at night, widening the diurnal gap in power supply and demand.

To alleviate the grid burden caused by the increasing use of unstable renewable energy power generation, Marubeni and B2U aim to provide higher-value adjustment functions by using used automotive batteries to balance power supply and demand and developing digital tools to optimize battery operations.

Through its investment in B2U, Marubeni contributes to achieving California’s renewable energy objectives*4 and stable power supply, realizing the contribution to low-carbon/decarbonization through our business outlined in “The Marubeni Long-Term Vision on Climate Change” announced in March 2021, while also contributing to a circular economy.

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  • Grid-Scale Batteries: Batteries used in connection with the entire power system from power generation to transmission and distribution.
  • Renewable energy objectives in California: Renewable energy in California is currently 30%. The state has set goals to implement 44% renewable energy by 2024, 60% by 2030, and 100% by 2045.

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5.Recycle (Click here to view the five processes)

Aircraft Parts Recycling Business

Aerospace & Mobility Division

While the aviation market continues to grow annually with increasing passenger demand, the need for airlines, facing intensifying global competition, to rethink their cost reduction strategies has also been rising in recent years.

Amid this, Marubeni entered the aircraft aftermarket business in 2012 by acquiring shares in Magellan Aviation Group LLLP (Magellan), a U.S. company selling rotable parts*5 for the aviation aftermarket, and has since expanded its business.

In 2023, through its wholly owned subsidiary, Marubeni Aviation Asset Investment LLC, a holding company for the aviation aftermarket business in the U.S. , Marubeni acquired a 50% stake in Diversified Aero Services, LLC (DASI), one of the world’s largest aircraft parts sales companies based in Florida, U.S. DASI procures and sells surplus parts*6 from airlines and maintenance companies.

By leveraging DASI’s strengths in diverse surplus inventory solutions and combining them with Magellan’s capabilities, Marubeni aims to enhance its proposal capabilities in the aviation aftermarket business, expand its revenue base, and maximize value provided to customers.

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  • Rotable Parts: Parts that can be reused after repair.
  • Surplus Parts: New parts procured from parts manufacturers that remain unused as surplus inventory.

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Metal Recycling Business

Metals & Mineral Resources Division

Cirba Solutions, LLC (U.S.)
Altilium Metals Ltd. (U.K.)
Nguyet Minh 2 Trading-Services-Environment Joint Stock Company (Vietnam)

In its environmental and circular economy businesses, in addition to ongoing efforts in ferrous and non-ferrous recycling, Marubeni has invested in Cirba Solutions, LLC (Cirba) in the U.S. and Altilium Metals Ltd. (Altilium) in the U.K. to engage in battery recycling businesses. Additionally, Marubeni has invested in Nguyet Minh 2 Trading-Services-Environment Joint Stock Company (NM2) in Vietnam to engage in aluminum recycling businesses.

Battery Recycling Business

With the spread of EVs and the expansion of an electrified society, the volume of batteries is expected to increase. At the same time, the mining of rare metals for batteries poses challenges to environment and economic security.
Efficient recycling of batteries is essential to address these challenges. Marubeni is contributing to solutions through its investments in Cirba in the U.S. and Altilium in the U.K., both of which possess technologies that help reduce environmental impact and promote a sustainable society.

Aluminum Recycling Business

Aluminum is considered an essential metal for achieving a decarbonized society and reducing environmental impact by decreasing plastic usage. In Vietnam, which has the highest beverage can consumption in Southeast Asia, the Extended Producer Responsibility (EPR*7) system has been implemented amid growing environmental awareness. NM2 is a Vietnam-based EPR-certified recycling company that melts various aluminum scraps, primarily beverage cans, to produce recycled aluminum ingots. In partnership with NM2, in which it holds an equity stake, Marubeni aims to advance Vietnam’s resource circulating economy, ensure a stable medium- to long-term supply of recycled aluminum ingots with low carbon footprint, and contribute to a sustainable society.

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  • Businesses that manufacture and/or import items specified by law in Vietnam are obligated to recycle the products and packaging in question at or above a specified rate.

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Governance

Our governance structure ensures adequate Board supervision of important sustainability-related issues for the Marubeni Group, which are deliberated and decided by the Corporate Management Committee and the Board of Directors. In the individuals’ qualitative evaluation in the compensation system for directors, we consider contributions to the plans and efforts related to sustainability measures. We have put into place a framework to enhance linkage with director compensation to medium- to long-term corporate value.

The Sustainability Management Committee, which reports directly to the President, holds discussions about a broad range of matters related to sustainability. Specifically, the Sustainability Management Committee leads the formulation of strategy, evaluation of progress and revision and monitoring of metrics and targets relating to sustainability, including climate change, water management, pollution prevention, sustainable forestry, biodiversity, circular economy, occupational health and safety, respect for human rights, contribution to local communities, supply chain management and responsibility to customers. In the fiscal year ended March 31, 2025, the Sustainability Management Committee was held twice and discussed the Mid-Term Management Strategy (GC2024 and the Green Strategy), TCFD disclosures and TNFD disclosures.

The committee deliberates and reports regularly (at least once a year) on these matters to the Board of Directors. The Board of Directors, by receiving periodic reports on important matters related to the sustainability initiatives discussed by the Committee, supervises sustainability-related matters.

The Sustainability Management Committee is chaired by the Chief Sustainable Development Officer, who is Managing Executive Officer, CSO. Outside advisor is also a member of the committee in an advisory role to support the management and supervision of sustainability-related matters from an independent external perspective.

Sustainability Management Organization

Risk Management

The Marubeni Group manages and monitors high-priority risks and opportunities from the perspective of sustainability—including aspects related to climate change, natural capital, circular economy and supply chain management—through the Sustainability Management Committee.

We have developed an assessment framework to support the multifaceted analysis of 27 items across the three risk categories (environmental, health and safety, and social). In addition, we assess the importance and impact of potential risks in each assessment category. We use this risk assessment approach in sustainability survey methods within the Group and for our suppliers, as a part of the process used to make any investment and financing decisions. Besides monitoring existing businesses, we use this approach to gauge the value of Group businesses on an ongoing basis from a sustainability perspective.

Risk Assessment Items in Business (27 Items Across 3 Categories)
Environmental Climate change / Environmental pollution / Biodiversity / Resource management / Mitigation measures and administrative procedures (environmental)
Health & Safety Machine safety / Fires and explosions / Toxic substance exposure / Infection / Hazardous operations / Mitigation measures and administrative procedures (health & safety)
Social Forced labor and human trafficking / Child labor / Working hours / Wages and employment contracts / Discrimination / Harassment at work and disciplinary measures / Respect for diversity / Freedom of association and the right to collective bargaining / Land issues / Negative social impact on local communities / Indigenous peoples and cultural heritage / Conflict minerals / Privacy / Animal welfare / Responsible marketing / Mitigation measures and administrative procedures (social)

Participation in International Initiatives

Marubeni contributes to the realization of a circular economy through participation in the following initiatives.

Circular Partners (CPs)

CPs was established by Japan’s Ministry of Economy, Trade and Industry, comprising the national government, local governments, universities, companies, industry associations, and other relevant institutions and organizations seeking to advance the circular economy in an ambitious and pioneering manner. The partnership is exploring measures needed to realize a circular economy through cohesive, integrated collaboration among its members.

Circular Partners (Japanese only)

Japan Partnership for Circular Economy (J4CE)

J4CE was established by the Ministry of the Environment, the Ministry of Economy, Trade and Industry, and Keidanren (Japan Business Federation) for the purpose of strengthening public-private collaboration, with the aim of further fostering understanding of the circular economy among a wide range of stakeholders, including domestic companies, and promoting initiatives in response to the accelerating global trend toward a circular economy.

Japan Partnership for Circular Economy

Japan Clean Ocean Material Alliance (CLOMA)

CLOMA was established to address the newly emerging global challenge of marine plastic litter by promoting the more sustainable use of plastic products and the development, introduction, and dissemination of innovative alternatives that help reduce plastic waste. To achieve this, the alliance plans and promotes economy-wide, cross-industry activities and aims to serve as a platform for advancing sustainable development through materials, through public-private collaboration.

Japan Clean Ocean Material Alliance

Japan Circular Economy Partnership (J-CEP)

J-CEP was established as the Circular Economy Task Force of the Ecosystem Society Organization (a general incorporated association), a new business co-creation partnership in which companies and other entities aiming to realize a sustainable society participate and, in collaboration with residents, local governments, universities, and other stakeholders, work to promote the circular economy.

Japan Circular Economy Partnership (Japanese only)

International Sustainable Forestry Coalition (ISFC)

ISFC was established as an international organization aimed at promoting climate change measures, biodiversity conservation, and the circular bioeconomy. Its mission is to support the transition to a sustainable society by focusing on sustainable land use, conservation and restoration of the natural environment, renewable materials in the circular bioeconomy, and economic benefits for local communities.

International Sustainable Forestry Coalition

Japan Sustainable Fashion Alliance (JSFA)

JSFA was established as a platform for corporate collaboration that aims to jointly find solutions to sustainable fashion issues. With the goals of achieving “zero fashion loss through proper quantity of production, purchasing and recycling” and “carbon neutral of the fashion and textile industries in 2050,” we collaborate to identify solutions to the common issues that arise in the fashion and textile industries, and promote the transition to a sustainable fashion industry.

Japan Sustainable Fashion Alliance (Japanese only)

Marubeni Corporation