Sustainable resource use

Information and communications equipment is a major offering of our leasing business. In recent years, greater importance has been placed on the environment and on information management with regard to the disposal of end-of-lease IT equipment. This trend is anticipated to spur rapid growth in demand for IT asset disposition (ITAD) services such as data erasing and disposal for IT equipment, which can be used to ensure the safe and appropriate disposal of these IT assets. We anticipate that this demand will be seen centered on global companies seeking to provide services that are standardized on a worldwide basis. In this regard, U.S.-based IT leasing subsidiary CSI Leasing, Inc., is a major source of strength. The company is able to supply high-quality global-standard services through its IT equipment leasing and ITAD service operations in more than 50 countries across the globe. CSI Leasing has been acquiring companies in various countries and taking other steps to establish local bases in markets around the world for propelling the development of its IT equipment life-cycle management service businesses.

In the aviation business, major U.S. aircraft leasing company Aviation Capital Group LLC (ACG) is engaged in self-driven forays into the operating lease business for new and other aircraft. Going forward, we will continue to pursue intra-Group synergies capitalizing on the strengths of the Group’s aircraft value chain, which includes such companies as aircraft parts and service business operator GA Telesis, LLC, and allows for strategic aircraft life-cycle management.

Tokyo Century’s automobility business contributes to sustainable resource use through a value chain that encompasses maintenance factories. In this area, Nippon Rent-A-Car Service, Inc., offers car rental services that deliver improved customer convenience and which contribute to sharing economies, as exemplified in the trend toward transitioning from ownership to use, amid the rising focus on realizing an environmentally sound, sustainable economy and society. In addition, Tokyo Century has concluded a capital and business alliance with MIRAI-LABO, which possesses electric vehicle (EV) battery diagnosis and evaluation and reuse technologies. We have also concluded a business alliance agreement with Kansai Electric Power Company, Incorporated, in relation to a stationary storage battery business utilizing used batteries from EVs, and verification tests are currently underway as part of this alliance. Going forward, we will continue to work with these partners to bolster and supply environment-friendly mobility services related to the reuse and recycling of EV batteries.

Tokyo Century is also taking steps to comply with Japan’s Plastic Resource Circulation Act. Specifically, we have set and announced targets for the recycling rate of industrial waste from plastic products and for the reduction of plastic office supplies and other plastic products. As one facet of our efforts to contribute to the creation of an environmentally sound, sustainable economy and society, as called for by our Management Philosophy, we have put forth a target of reducing purchases of plastic clear files by 50% (compared with fiscal 2022) by March 31, 2026. We have been transitioning from plastic clear files to paper files for providing documents to business partners, and those plastic clear files purchased for internal use are being reused on a Companywide basis in fiscal 2021. Moreover, a framework for sorting and reusing plastic clear files based on their condition was implemented at certain head office divisions in fiscal 2023. By expanding the scope of these initiatives, we look to achieve a 100% recycling rate of plastic clear files by March 31, 2025.