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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
In March 2025, NEC established its Circular Economy Guidelines. These guidelines address circular economy challenges such as natural resource shortages, which pose global risks on part with climate change and impacts on natural capital. They outline NEC’s commitment to promoting resources circulation in its business activities and contributing to a sustainable circular economy society through technological innovation and the creation of new business models.
NEC will advance its circular economy initiatives guided by these principles.
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.
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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.
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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.
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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.
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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.
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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 of Used Products
Since 1969, NEC has been collecting used IT devices such as computers from corporate customers for reuse and recycling. In 2001, amendments to the Law for the Promotion of Effective Utilization of Resources mandated the collection and recycling of used personal computers (PCs) discarded by companies. As a certified processor of industrial waste, NEC was a leader among electronics manufacturers in collecting PCs when the amendments went into force. In fiscal year 2025, we collected about 701 tons of computers, PCs, printers, and other IT devices from corporations, a decrease of about 10% compared with the previous fiscal year. The recycling rate1 was 99%, 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 91%, 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.
- 1The ratio of the weight of reused, material-recycled, and thermal-recycled items to the total weight of collected IT devices
- 2The 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 2001, amendments to the Law for the Promotion of Effective Utilization of Resources mandated the collection and recycling of used PCs discarded by companies. In 2003, the law mandated the collection and recycling of used PCs discarded by households. In fiscal year 2025, NEC collected approximately 56,000 used PCs, including desktop PCs, notebook PCs, CRT displays and liquid crystal displays, a decrease of approximately 16% 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.
Responding to the Plastic Resource Circulation Act
In 2021, Japan enacted the Plastic Resource Circulation Act with the aim of further promoting plastic resource recycling to address the issue of marine plastic trash and climate change issues, as well as to strengthen regulations
pertaining to waste imports in other countries. Under this law, businesses that generate industrial waste from products that use plastic (NEC is a large-volume waste generator) are required to promote the reduction and recycling of such waste. NEC aims to reduce the amount of industrial waste generated from products that use plastic and promote
recycling. We have set waste reduction targets and are implementing relevant initiatives.
- Fiscal year 2026 target: Reduce waste plastic generated by 4.2% compared with fiscal year 2020 (per unit of sales)
- Fiscal year 2025 result: 53% reduction per unit of sales (target achieved)
- Fiscal year 2025 waste plastic generated: 571 tons
Note: Waste plastic generated and targets exclude special factors (irregular waste plastic generation associated with redevelopment of plants, etc.)
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, 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 is 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, and will operate as a digital product passport (DPP).
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. For the realization of a circular economy, secure information exchange between domestic and international companies is essential.
Developed an information exchange platform for the domestic plastics industry in cooperation with other companies and countries.
Streamlining Recycled Plastic Production Using Materials Informatics
NEC and MARUKI SANGYO Co., Ltd. conducted a proof-of-concept experiment applying materials informatics, an AI-driven technology for efficient material development, to streamline the production of recycled plastic.
The results confirm that even inexperienced workers could cut production time in half when blending and coloring recycled plastic.
The plastic recycling process starts with the collection and sorting of waste plastic, followed by crushing, blending, coloring, and pelletizing before shipping the final product known as pellets. The blending process is especially demanding, as it requires determining the optimal mix each time from small, diverse batches of waste plastic received daily, based on customer demands for strength, thermal fluidity, color, and quantity. This task heavily relies on the skills and experience of seasoned workers.
Based on blending data accumulated by MARUKI SANGYO since its founding, NEC applied its expertise in materials development, including bioplastics, along with materials informatics technology to develop a system that proposes optimal blending and coloring options for waste plastic. The system allows users to input their desired performance and color requirements, then suggests optimal combinations based on the constantly changing inventory of waste plastic.
Building on these results, the two companies have begun discussions to develop a solution that enables efficient recycled plastic production. Targeting 2025, both companies aim to offer consulting-based solutions to businesses involved in plastic recycling, thereby promoting efficient and circular use of waste plastics. By making parts of the recycled plastic manufacturing data publicly accessible, they aim to enhance the added value of recycled materials through AI and expand their applications.
Together, the two companies will lead cross-industry co-creation efforts to accelerate the circular economy—a socioeconomic system that promotes efficient resource circulation—and address social issues.
Risk Management
Risk / Opportunity | Description | Risk reduction measures / Specific opportunities |
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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 2025 targets | Fiscal 2025 results |
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Waste volume | 10% reduction | 29.3% reduction |
Encourage recycling of plastic resources※ | 3.5% reduction | 52.7% 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
FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | |
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Total waste | 35,886 | 308,460 | 42,236 | 38,516 | 28,467 |
General waste | 1,823 | 1,781 | 1,608 | 1,479 | 1,338 |
Industrial waste | 26,772 | 303,457 | 35,539 | 26,872 | 24,605 |
Specially controlled industrial waste |
5,755 | 1,795 | 4,089 | 9,188 | 2,066 |
International waste | 1,536 | 1,427 | 1,000 | 977 | 458 |
Recycling rate | 81.0% | 94.6% | 86.9% | 72.9% | 89.9% |
Recycling | 29,057 | 291,668 | 36,707 | 28,061 | 25,588 |