(Head Office: Hakata-ku, Fukuoka; Representative Director: Shunsuke Managi; hereafter "aiESG"), a developer and provider of consulting and cloud services for product and service level supply chain ESG analysis and evaluation, has conducted a demonstration experiment with JOYCLE Co: (headquartered in Minato-ku, Tokyo; Yutaro Koyanagi, CEO; hereinafter "JOYCLE") to conduct a demonstration experiment in Ishikari City, Hokkaido to analyze and calculate the ESG contribution impact of distributed infrastructure.

Demonstration Experiment in Ishikari City

This demonstration experiment aims to reduce the costs and environmental impact associated with the long-distance transportation of waste to a conventional incinerator by utilizing the JOYCLE BOX, a decentralized upcycle plant developed by JOYCLE, for on-site treatment and recycling of waste materials.

In addition, aiESG was in charge of analyzing and calculating the ESG contribution impact using its proprietary analytical tools and analysis technology, and visualizing collection routes using refuse collection vehicles equipped with MOVO Fleet, a dynamic management service specialized for logistics that enables acquisition and analysis of vehicle location data. aiESG was in charge of analyzing and calculating the ESG contribution impact using proprietary analytical tools and analysis technology.

As a result, it was estimated that if 12 "JOYCLE BOX" trucks replaced two collection trucks in Ishikari City, annual CO2 emissions could be reduced by approximately 56 tons, fuel consumption by 16,280 liters, and transportation costs by 72 million yen. In addition, it has been confirmed that the project can reduce working hours by 169 hours.

What is JOYCLE BOX?

JOYCLE BOX is a compact IoT upcycling plant that makes it possible to "convert waste into resources without transporting or burning. It uses electrothermal pyrolysis technology instead of fire to generate biochar and ceramic ash from waste, which can be upcycled as reusable resources.

Main features:.

• Reduction of environmental impact Shorter transport distances and significantly reduced CO₂ emissions.
• Sustainability: Sustainability Contributing to the realization of a regional recycling-oriented society by converting waste into resources within the region.
• Data Visualization:. Utilize JOYCLE BOARD to manage the status of waste disposal and its contribution to the economy and environment in real time.

Background and Objectives of the Demonstration Experiment

In rural areas of Hokkaido, declining and aging populations have led to a decline in waste collection efficiency and an increase in waste disposal costs.

Therefore, this demonstration experiment is part of Ishikari City's startup support program, "Ishikari City Startup Support Program.2024 Ishikari Model Project for Regional Innovation CooperationThe following issues were resolved by utilizing the

• Reduction of transportation costs and environmental impact through utilization of decentralized infrastructure reflecting waste collection efficiency
• Promotion of local decarbonization through reduction of CO₂ emissions
• Reinforcement of the system to realize a circular economy in response to the driver shortage caused by an aging society

Roles of each company in the demonstration experiment

1. Data analysis and optimal placement simulation (aiESG)
   The data is analyzed to calculate the expected amount of refuse collected and collection efficiency.
   Calculate ESG contribution impact by optimal placement of JOYCLE BOX.
2. Installation and operation of a decentralized upcycling plant (JOYCLE)
   Planning and execution of a demonstration experiment to calculate the impact of on-site treatment and recycling of waste by installing a decentralized upcycle plant "JOYCLE BOX" in an area with low waste collection efficiency.
   ESG contribution impact verification, including reductions in CO₂ emissions and collection costs.
3. Provision of demonstration field (Ishikari City)
   Provides a field for demonstration experiments.
   Support for cooperation with waste management companies in the region.

Overview and Results of the Demonstration Experiment

Period: Monday, January 27, 2025 - Friday, January 31, 2025
Overview:Using Hacobu's MOVO Fleet dynamic management service, we visualized the refuse collection efficiency of some refuse collection trucks in Ishikari City and calculated the ESG contribution impact together with aiESG based on the assumption that 12 JOYCLE BOXes are installed in an area far from the incinerator where the collection efficiency is low. The ESG contribution impact was calculated together with aiESG.
Results:
The initial cost (12 units installed * 30 million yen/unit = 360 million yen) could be recovered in 5-6 years even if the operation cost of the JOYCLE BOX is estimated, and the effectiveness of the hybrid use with transportation to a large incinerator could be proved by the data from aiESG calculation.

Summary of Demonstration Results:

• Reduction of 937 km/week driving = Reduction of diesel oil 312.33 L/week(*1) = Reduction of 2.62 million yen/year(*2)
• Reduction of operating costs for 2 collection trucks (*3) = 72 million yen/year reduction (*4)
• Improved working environment for employees
• Reduced annual CO₂ emissions by approximately 56 tons and fuel consumption by 16,280 liters

*1) Price of diesel fuel: 160.9 yen/liter (December 2024) (Source:https://www.hkd.meti.go.jp/hokno/touyu/index.htm)
2) Fuel consumption is assumed to be 3 km/L because garbage trucks are subject to frequent stops and idling.
*3) Monthly operating costs per garbage truck (gasoline, labor, vehicle depreciation, etc.): 2.92-3.55 million yen
(Source:https://www.city.fukuoka.lg.jp/kankyo/kateigomi/life/documents/keihi.pdf)
4) Assumed monthly operating cost of 3 million yen per garbage truck; JOYCLE BOX price is calculated based on the future target price and assuming no electricity costs due to the use of renewable energy.

Comments from stakeholders

Comments from the Ishikari City Planning and Policy Department, Corporate Collaboration Promotion Division

Ishikari City is located to the north of Sapporo City, facing the Sea of Japan. The city covers an area of 70 km from north to south and approximately 30 km from east to west as a result of municipal mergers in 2005. While the southern part of the city has developed an urban industrial space with the development of Ishikari Bay New Port, a port in the Sapporo area, the northern part is facing a serious decline in population due to the low birthrate and aging population, and is facing various issues, and is promoting sustainable community development through regional DX. We recognize that this project aims at sustainable waste collection in Hokkaido, which has a large area, and we hope that this demonstration experiment will help resolve issues in waste collection in rural areas.

Comments from Yutaro Koyanagi, President of JOYCLE Inc.

As someone who grew up in Hokkaido, I was proud that our compact IoT upcycling plant "JOYCLE BOX" should be able to contribute to solving the major issues of waste transportation in the vast Hokkaido area due to the aging population and lack of drivers. Thanks to the cooperation of everyone involved, we were able to calculate a concrete estimate of the ESG contribution impact, and we are very pleased to confirm once again that we are heading in the right direction. The demonstration project in Ishikari City will be presented at the "Ishikari City's2024 Ishikari Model Project for Regional Innovation CooperationWe would like to express our deepest gratitude to you for adopting us as a member of the "Resource and Joy Recycling Society" and for your generous support. We look forward to continuing to work together with you in creating a society where resources and joy are recycled. Thank you very much for your continued support.

Comments from Shunsuke Managi, President of aiESG, Inc.

This initiative provides important findings as one of the few attempts to quantify the benefits of implementing decentralized infrastructure. The results of this initiative will promote the introduction of decentralized waste management infrastructure and provide concrete guidelines for decarbonizing society and promoting sustainability. aiESG will continue to support the realization of a sustainable society through data-driven environmental and social assessment.

About JOYCLE Corporation

JOYCLE provides a platform related to small upcycling plants that enables visualization of cost-cutting effects and environmental contribution related to waste treatment.

• Representative Yutaro Koyanagi
• Tokyo Head Office: Tokyo, Japan Sumitomo Fudosan Toranomon Tower 5F, 2-2-1 Toranomon, Minato-ku, Tokyo 105-0001, Japan
• Nagoya Head Office: Nagoya, Japan STATION Ai, 1-2-32 Tsurumai, Showa-ku, Nagoya, Aichi 466-0064, Japan
• Okinawa Head Office: Okinawa, Japan 401, 2-17-27 Makishi, Naha City, Okinawa 900-0013, Japan
• Business: Business Provide consulting and data platform services specializing in small upcycle plants
• URL:. https://joycle.net/

About aiESG

aiESG is a start-up company from Kyushu University that aims to realize a sustainable society through product and service level ESG analysis. Based on the results of many years of international and academic ESG research, including UN report representatives, we provide an ESG assessment platform called "aiESG Flow" that traces back the entire supply chain. We also provide support services on all aspects of ESG.

Click here to visit our corporate website　https://aiesg.co.jp/)

Company Profile

Company name: aiESG Inc.
Head Office: NMF Hakata Ekimae Bldg. 2F, 1-15-20 Hakata Ekimae, Hakata-ku, Fukuoka City, Fukuoka
Representative Director : Shunsuke Managi
Chief Executive Officer : Daikichi Seki
Business : ESG analysis business at the product/service level
HP :https://aiesg.co.jp/
Establishment : July 2022

For inquiries regarding this matter, please contact: aiESG Public Relations, Inc.
e-mail: (English) pr@aiesg.co.jp