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Resource Circulation, and the Circular Economy

Governance

Resource Circulation Implementation Framework

In the Environmental Management Implementation Framework, NEC engages in environmental management as well as resource circulation. These include the establishment of circular economy activity sharing meetings to improve synergy between the circular-related businesses of each business unit and create new business opportunities.

Participation in Initiatives Related to Resource Circulation

  • CLOMA
  • Circular Partners, a government-industry-academia partnership

Strategy

Circular Economy Guidelines

NEC is committed to promoting resource circulation in all of its business activities, from product design and production to service provision, in response to global issue of natural resource depletion and contributes to realization of sustainable circular economy society through technological innovation and creation of new business models.

  1. We support realization of circular economy society by providing business models that utilize ICT and human resources to solve technical and social issues faced by entire value chain.
  2. We thoroughly promote resource circulation throughout our business activities and actively work to resource circulation of products we provide from design and production to use and collection.
  3. We actively disclose information to stakeholders in a transparent manner regarding our own initiatives for realization of circular economy society and our contribution activities for customers.
  4. We contribute to collaboration among stakeholders by working to create infrastructures for data distribution and sharing, which is essential for realization of circular economy society.
  5. We promote human resource development and awareness-raising so that each and every employee can deepen their understanding of the circular economy and actively contribute through their work.

NEC Initiatives

Collection and Recycling

NEC has been collecting used information and telecommunication equipment such as computers from corporate customers since 1969, for reuse and recycling.

In 2001, new provisions in the Law for the Promotion of Effective Utilization of Resources were enacted. These provisions require that used PCs from businesses be collected and recycled. NEC made use of its qualification as a certified processor of industrial waste and began a manufacturer service for the collection of PCs ahead of other manufacturers, right at the time this law was implemented.

In fiscal 2024, we collected about 780 tons of computers, PCs, printers, and other IT devices from corporations, an increase of about 18% compared with the previous fiscal year. The recycling rate1 was 98%, about the same as in the previous fiscal year. In addition, the resource-reuse rate2 as defined by the Law for the Promotion of Effective Utilization of Resources was 90%, also about the same as in the previous fiscal year. Going forward, we will promote further improvements in resource recycling through the recycling of plastics and other resources.

  • 1
    The ratio of the weight of reused, material-recycled, and thermal-recycled items to the total weight of collected IT devices
  • 2
    The ratio of the weight of materials that can be used as recycled products (parts reuse) or resources (material recycling) to the total weight of collected IT devices (as defined by the Law for the Promotion of Effective Utilization of Resources)

State of Collection and Recycling of PCs

In April 2001, new provisions in the "Law for the Promotion of Effective Utilization of Resources" were enacted, requiring that used PCs from business establishments be collected and recycled by manufacturers. Subsequently in October 2003, the additional responsibility of collecting and recycling used home PCs was placed on manufacturers.
In fiscal 2024, NEC collected approximately 67,000 used PCs, including desktop PCs, notebook PCs, CRT displays and liquid crystal displays, a decrease of approximately 1.5% compared with the previous fiscal year. We achieved the effective resource utilization rate prescribed by law (as a target to be achieved by 2003) for all of our products.

Response to the Act on Promotion of Resource Circulation for Plastics

In June 2021, the Act on Promotion of Resource Circulation for Plastics was enacted to further promote the circulation of plastic resources in Japan with the aim of resolving issues related to marine plastic pollution, climate change, and tighter foreign waste import regulations. This law requires companies that generate industrial plastic waste in the manufacture, processing and distribution of plastic products to promote the reduction and recycling of industrial plastic waste.

NEC is a large generator of industrial plastic waste and has set targets and implemented initiatives to promote the reduction and recycling of industrial waste generated from plastic products.

  • Fiscal 2025 target: Reduce waste plastic generated by 3.5% compared with fiscal 2020 (per unit of sales)
  • Fiscal 2024 result: 46% reduction per unit of sales (target achieved)
  • Fiscal 2024 waste plastic generated: 603 tons

Note: The plastic waste generation amount or target does not include plastic waste generated under special circumstances, such as irregular plastic waste generated during the redevelopment of business sites.

Contribution through Businesses

Construction of the Plastic Information Distribution Platform (PLA-NETJ)

NEC is participating in the government's Strategic Innovation Promotion Program (SIP) Phase Three, focusing on the issue "Construction of a Circular Economy System," and is developing the Plastic Information Distribution Platform (PLA-NETJ).

PLA-NETJ is a digital management and information sharing system for the circulation of plastic materials used in products throughout their life cycles. In particular, we are conducting research and development with the aim of improving the use of recycled plastic materials. PLA-NETJ records trace data (Figure 1), such as where raw materials were mined, where they were processed, where final products were made, how much CO2 was emitted, how much recycled material was included, and information on durability. PLA-NETJ will connect to data spaces (spaces for sharing and using data across borders and fields, such as Ouranos Ecosystem, DATA-EX, and Gaia-X) developed both in and outside Japan. It will also distribute information between data registered in PLA-NETJ and data registered in other systems (Figure 2), and will operate as a digital product passport.

PLA-NETJ Features

Since PLA-NETJ manages data based on the material of the product, it can manage the physical properties of plastic materials, both virgin and recycled, in cooperation with the material informatics system used in material development and the recycled materials data bank developed in this SIP, and can match supply and demand as a plastic materials database. In addition, distributed management using blockchain enables the management of trace data for product life cycles. Product life cycles in physical space will be managed and visualized by PLA-NETJ in cyberspace.

Figure 1: Managing Trace Data throughout Product Life Cycles
Figure 2: Data Spaces for International Information Sharing

Aluminum Upcycling Joint Research Launched by University of Toyama and NEC
Promoting Decarbonization with Japan's Leading Aluminum Recycling Research Facility

In February 2024, the material informatics system delivered by NEC to the Collaborative Research Building for High Metals on the Takaoka Campus of the University of Toyama began operation.

This research building is equipped with highest level of equipment for a university in Japan, including a melting and refining system, extruder, and electron microscope. The data obtained using this equipment can be gathered and analyzed collectively by the materials informatics system provided by NEC. While upcycling aluminum is considered difficult, the aim is to make upcycling a reality.

Upcycling involves the removal of unnecessary elements contained in recycled aluminum to create high-purity recycled aluminum ingots.

Economic security is one of the reasons upcycling is important. Demand for lightweight wrought aluminum alloys is on the rise due to the growing popularity of electric vehicles (EV), which need to be light in weight. However, the current reality is that bauxite—the raw material used to produce aluminum—is primarily produced outside Japan, and Japan is dependent on imports for virgin aluminum. Another reason is the environment. It takes a tremendous amount of electricity to produce aluminum from bauxite, and approximately 10 tons of CO2 is emitted for every ton of aluminum produced. On the other hand, recycling uses just 3% of the electricity it takes to newly produce aluminum from bauxite. From the perspectives of economic security, energy conservation, and decarbonization, there is a pressing need to realize upcycling as quickly as possible.

NEC and the University of Toyama have initiated joint research to help solve the world's environmental problems by using AI and other NEC technologies to visualize recycling processes and impurities.

Risk Management (Including Opportunity Generation)

Risk / Opportunity Description Risk reduction measures /
Specific opportunities
Risk Tighter relevant regulations at home and abroad require time and resources to appropriately address. If the response is delayed, it may affect NEC's competitiveness and reputation. Utilize collection of information before the enactment of regulations to facilitate an early response
Opportunity
(economic value)
Market expansion of circular economy-related businesses continues to progress and new markets continue to open up. Expanding ICT services that connect venous and arterial industries, such as digital product passports.

Waste with High Environmental Impact

NEC engages in the sale and manufacture of information equipment such as servers, routers, and wireless communications equipment. These products are made using a wide variety of chemical substances, and if these substances are not disposed of properly after use, they could have a major impact on the environment. Therefore, in 2001 NEC became a certified processor of industrial waste, a first for the electronics industry, and since then the Company has become committed to collecting and recycling its products. Moreover, when procuring parts necessary for the manufacture of our products, we are mindful, starting from the product design stage, of selecting parts that will be easy to recycle and will not cause environmental damage.

Proper processing of waste

In compliance with the Act on Waste Management and Public Cleaning, we store and manage waste generated at each site appropriately, select waste disposal companies that can properly dispose of the waste, and outsource the disposal to them. In addition, we conduct regular on-site audits to confirm that subcontractors are handling waste appropriately in accordance with the law. Furthermore, we hold waste seminars for employees regularly to deepen their understanding of proper waste disposal and put it into practice. Also, through our online training for all employees, which is part of our corporate-wide environmental program, we educate employees on reducing and sorting waste, and work to raise the awareness of each employee.

Indicators and Goals

Items Fiscal 2024 targets Fiscal 2024 results
Waste volume 3.4% reduction 36.3% reduction
Encourage recycling of plastic resources 2.8% reduction 46.2% reduction

Actions: Expand conversions of waste to sellable materials, enhance waste separation, reduce paper use through digitalization, reuse cushioning materials, and administer on-site checks targeting contractors to ensure that outsourced industrial waste goes through an appropriate disposal process

  • *1 Recycling rate:
    We support realization of circular economy society by providing business models that utilize ICT and human resources to solve technical and social issues faced by entire value chain.
  • *1 Recycling rate:
    We thoroughly promote resource circulation throughout our business activities and actively work to resource circulation of products we provide from design and production to use and collection.
  • *2 Resource-reuse rate:
    We actively disclose information to stakeholders in a transparent manner regarding our own initiatives for realization of circular economy society and our contribution activities for customers.
  • *2 Resource-reuse rate:
    We contribute to collaboration among stakeholders by working to create infrastructures for data distribution and sharing, which is essential for realization of circular economy society.
  • *2 Resource-reuse rate:
    We promote human resource development and awareness-raising so that each and every employee can deepen their understanding of the circular economy and actively contribute through their work.

Waste

Breakdown of Waste Generation

(Unit: Tons)

  FY2019 FY2020 FY2021 FY2022 FY2023 FY2024
Total waste 38,318 38,589 35,886 308,460 42,236 38,516
General waste 2,156 2,328 1,823 1,781 1,608 1,479
Industrial waste 35,030 31,993 26,772 303,457 35,539 26,872
Specially
controlled
industrial waste
633 2,756 5,755 1,795 4,089 9,188
International waste 499 1,512 1,536 1,427 1,000 977
Recycling 34,504 36,612 29,057 291,668 36,707 28,061
Recycling rate 90.0% 94.9% 81.0% 94.6% 86.9% 72.9%

Chemical Substances

Our Approach

NEC carefully examines the environmental impact and safety of chemical substances in all phases of its operations, from introduction and use to disposal. NEC takes all possible measures to reduce consumption and replace harmful substances with safer ones.

Preliminary Evaluation of Chemical Substances

NEC has been conducting preliminary evaluations to examine environmental and safety aspects carefully when using a new chemical substance for the first time. These preliminary evaluations are a series of strict examinations of physical properties, toxicity levels, handling methods, emergency response measures, recycling methods, environmental impact, and other items related to chemical substances. Only substances that have passed these examinations are allowed to be purchased.

Preliminary Evaluation Process for Chemical Substances

Safety data sheets (SDS) are obtained from manufacturers or prepared independently for all chemical substances used. These are used for reference when making judgments in considering safety countermeasures to apply when using the chemical substances. Manufacturing assessments are also carried out in all manufacturing processes to evaluate environmental and safety aspects of the chemical substances and production facilities.

Conformance to the PRTR System (Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof)

NEC discloses the results of managing the inputs and outputs of chemical substances used by the NEC Group that are subject to the PRTR System (Class I Designated Chemical Substances: 462 substances).

For chemical substances released into the atmosphere and public water bodies (including discharges into sewage systems), NEC has set its own voluntary standards, which are more stringent than the levels required by law, and ensures that these standards are strictly met.

Reduction in Use of Strictly Regulated Chemical Substances

Ozone-depleting substances

The use of all specific chlorofluorocarbons as a cleaning agent in manufacturing processes was discontinued in 1993. By the end of fiscal 2011, efforts to totally discontinue the use of specific chlorofluorocarbons for refrigerant in air conditioners and specific halons used in fire extinguishers achieved a reduction of 96%, almost completely abolishing them from use.

Strict Control of Equipment and Parts Containing PCBs

At present, NEC strictly controls disposed-of devices (equipment and parts, including fluorescent light stabilizers) containing polychlorinated biphenyls (PCBs) at its three plants and five Group companies under stringent double and triple measures for preventing leakage.

The Law Concerning Special Measures for Promotion of Proper Treatment of PCB Waste was revised in 2016, changing the processing period set in the basic plan for the disposal of PCBs.

In compliance with the change, NEC is revising its disposal plans to ensure that the waste is processed within the set deadline.

Amount of PCBs held by NEC (as of March 31, 2021)
High concentration: 29,409 kg Low concentration: 71,932 kg

Scope: NEC Corporation

Targets and Results

Item Target Results
Chemical substance
procurement volume*1
1% reduction
(compared with fiscal 2018)
Achieved
Emissions of volatile organic compounds (VOCs)*2 At least 1% reduction
(compared with fiscal 2018)
Achieved
  • *1
    Substances subject to the PRTR System
  • *2
    Substances subject to voluntary action plans in the electrical equipment and electronics industries