For Realization of a Circular Economy Under Toray Group Sustainability Vision, “a world where resources are sustainably managed” is one of perspectives of the world that we aim to realize by 2050. Society has so far faced various issues such as resource depletion, marine

pollution from significant garbage inflow, and 2CO emis- sions. To solve these issues, Toray has positioned measures to realize a circular economy that effectively uses resources, as a key theme in “Project AP-G 2022.”

Toray Industries, Inc. Integrated Annual Report 2020 68 Realizing a Circular Economy through Various Technologies and Products Toray is contributing to the realization of “a world where resources are sustainably managed”—the so-called circular economy—through various technologies in such areas as recycling of , utilization of biomass in raw materials, use of renewable and hydrogen energy, and reuse of water. For example, Toray is engaging in material recycling*1 and recycling within our operating processes, which reuse products such as and , resins, and films. In addition, we have already produced products through chemical recycling*2 that turns unrecyclable plastics into basic chemicals such as monomer and gas. Furthermore, Toray is promoting the development of products made using plant-derived raw materials rather than petroleum, and membrane-integrated biotechnology that effectively produces these raw materials. Moreover, Toray technologies are being used in areas including materials for wind turbine blades that generate energy used in manu- facturing processes, materials for equipment that produces hydrogen used to generate renewable energy, and water treatment membranes for recycling wastewater.

*1 Material recycling: a recycling process that uses heat to convert used plastic bottles and remnants produced during manufacturing processes into yarn, staple fiber, and other materials. *2 Chemical recycling: a recycling process that breaks down through depolymerization used products and remnants produced during manufacturing processes into monomers that are manufactured back into chips and then recycled into yarn, staple fiber and other materials.

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Toray Industries, Inc. Integrated Annual Report 2020 69 Using Biomass Toray has developed processing technology that realizes energy and cost reductions by applying water treatment mem- branes to the biomass saccharification process, which produces cellulosic sugar from non-edible biomass, and is oper- ating a demonstration plant on a trial basis. Toray is pursuing the creation of supply chains that make practical use of this process to manufacture materials and chemicals from non-edible biomass. At the same time, Toray is mass producing partial bio-PET fiber, a biomass-derived fiber made from plant-based ethylene glycol that is used to make such products as Ultrasuede® PX, a nonwoven material created using ultra-fine fibers in an “island in the sea” configuration. At present, Toray has completed prototype production of 100% bio-PET fiber at its demonstration plant, positioning it as a top-level environmentally friendly material mainly for sportswear and automotive interior applications, and Toray aims for mass production as early as possible in the 2020s.

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Toray Industries, Inc. Integrated Annual Report 2020 70 Promoting Recycling Toray is expanding its ECOUSE™ regeneration type recycling material and CYCLEAD™ collection circulation type recycling system into a wide array of business fields including fibers and textiles, resins, and films. As for regenera- tion type recycling, in fiscal 2019, Toray kicked into full gear advanced initiatives to recycle collected plastic bottles to be used as raw materials for textiles and established the new business brand &+™ (And plus) with the aim of realizing a sustainable society. As for collection circulation type recycling, Toray has developed its proprietary material recycling system that collects and recycles used fiber and plastic, and is leveraging this system to pursue initiatives in this field.

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Toray Industries, Inc. Integrated Annual Report 2020 71 Fibers & Textiles The New &+™ Fiber Brand Made from Recycled Plastic Bottles Previously, plastic bottle derived-fibers were limited in variety due to contaminants mixed into raw materials, which made it difficult to produce special cross-sections and fine fibers, as well as issues posed by fiber whiteness being impaired by yellowing from plastic bottle degradation. In response, Toray together with Kyoei Industry Co., Ltd. devel- oped contaminant filtering technology and advanced plastic bottle cleaning techniques to stabilize the supply of raw materials that are impurity-free. Combining these technologies with Toray’s fiber production technology, it is possible to achieve diverse fabric applications with a degree of whiteness equivalent to fibers materials made directly from petro- leum source. Moreover, Toray has commercialized its highly reliable polyester fiber under the &+™ brand by incorpo- rating its proprietary traceability technology that can detect special additives premised in with plastic bottle-based raw materials. Full-scale sales of the &+™ products started in January 2020, and Toray targets sales of over ¥50 billion in 2025 by expanding the scope of sales by leveraging various supply chains (extending from yarn and staple fiber through to textiles and garments) and global production bases.

CLEAN RECYCLING

TRACEABILITY AUTHENTICITY

Promoting Recycling with UNIQLO Together with UNIQLO CO., LTD., Toray is promoting new initiatives for sustainable products, with Toray supplying &+™ fibers made from recycled plastic bottles for UNIQLO’s quick-drying wear DRY-EX brand polo shirts starting in 2020. In addition, UNIQLO stores are collecting used down items from customers to recycle the feathers. Conventionally, the stuffing in duvets and other objects incorporating down is manually removed. Such processes are arduous with Ultra Light Down items because of their thin outer fabric and complex construction. By developing special extraction machinery, Toray has fully automated cutting, stirring and separating, and recovery, for 50-fold the process capacity of manual processes, thus greatly alleviating workloads. Toray and UNIQLO are jointly developing new recycling-based down products from recycled feathers.

Toray Industries, Inc. Integrated Annual Report 2020 72 Plastics Air Conditioner Material Recycling Toray provides recycled plastics using its proprietary sed air conditioner (indoor unit) e air conditioner (indoor unit) processing design using remnants produced within orte ree production processes and materials derived from used products. Teaming up with customers, Toray has also developed a material recycling system that recycles ndoor unit fan ndoor unit fan fans inside used air conditions collected under ’s Act on Recycling of Specified Kinds of Home Appliances into new fans. Fans installed in indoor air conditioners Ceaning eta remova use glass fiber-reinforced acrylonitrile-styrene resins, reing eetie and Toray’s unique collection and foreign substance reccling removal system and materials blending method solve irgin pellets such problems as contamination and glass breakage peet l during recycling as well as realize physical properties nearly equivalent to virgin materials.

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Film Building Release Film Collection System Currently, PET release films are mainly disposed or thermally recycled because of the difficulties associated with removing coating materials and resin used at each stage of the supply chain. Building a release film collection system, Toray aims to make use of the recycled films to fibers, films and other Group materials.

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Carbon Fiber Carbon fiber is viewed as an important contributor to solving global environmental problems, as its lightweight prop- erties significantly reduce CO2 emissions over the entire lifecycle of products in which it is used. As a result, demand for carbon fiber is expanding across a wide range of applications, including aircraft and automobile parts. In conjunction with the growing demand, market expectations for the development of carbon fiber recycling technologies are rising. Teaming up with Tsusho Corporation, Toray in July 2017 began operating pilot plant built at a facility run by ’s subsidiary Toyota Chemical Engineering Co., Ltd. in order to field test energy-efficient, recycled carbon fiber manufacturing technology. Toray is pursuing the development of recycled carbon fiber applications with an eye towards commercialization.

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