Sustainable Solutions (Environmental Initiatives)
Contributing to a Circular Economy
The traditional economic model of mass production, mass consumption, and mass disposal has led to numerous challenges, including climate change, natural resource depletion, and plastic pollution. Today, companies can no longer afford to ignore what happens to the products they create after they are used.
In light of this trend, the realization of a circular economy (CE) has now been positioned as a national strategy even in Japan. There is a need to shift to a socioeconomic system that makes maximum use of waste and other resources, creates added value, and leads to new growth.
In addition to solving environmental issues such as climate change and biodiversity conservation, a CE has the potential to revitalize local areas, achieve a high quality of life, strengthen industrial competitiveness, and ensure economic security. Against this backdrop, it is essential for companies to view CE compliance not simply as a cost but as a growth strategy and take steps to gain a competitive advantage.
Circular Economy in the Forward Logistics Domain
To realize a CE in the forward logistics domain, it is important to ensure the traceability of products and clarify their ownership. By utilizing leasing (sales financing), the ownership of leased assets can remain attributed to the leasing company when provided to the user, enabling them to be collected when the user has finished with them. This enables manufacturers who are the sellers to make specific considerations toward making their products CE-compliant.
Circular Economy in the Reverse Logistics Domain
At SMFL, we believe that connecting the forward logistics domain with the reverse logistics domain is a vital mission for a leasing company. As the asset owner, we have carried out their proper disposal and provided solutions that contribute to the 3Rs, waste compliance management ASP services, and waste disposal assistance to our customers. Additionally, we are currently focusing on rare earths and other materials that have value in themselves, and products whose disposal present problems, while considering recycling businesses that utilize the strengths of each group company.
SMFL's Circular Economy (CE promoting structure)
In line with the Medium-Term Management Plan from April 2023, we launched a company-wide organization called the Circular Economy Promotion Working Team (WT) and have been worked to build specific CE models with customers and disseminate CE-related information both internally and externally.
To accelerate CE initiatives carried out to date, in April 2025 we significantly enhanced the organization and personnel of the Circular Economy Division, to which we transferred the WT functions. Consolidating domestic and international CE-related information, this division will accumulate specialized knowledge while providing wideranging solutions to customers' issues.
It is said that not only the utilization of renewable energy but also CE initiatives will be essential to the realization of a carbon-neutral (CN) society. In conjunction with the Environmental and Energy Business Division, which is handling decarbonization business and has been positioned under the umbrella of the newly established Global Environment Business Unit, we will accelerate CN and CE business by utilizing digital technologies and take on the challenge of realizing green transformation (GX).
Toward Establishing a CE Model (SMFL2030 model)
Maximizing the use of the various capabilities we have cultivated as "a business company with financial capabilities," by 2030 we aim to build a CE model unique to SMFL from three perspectives: "Build a resource circulation circle," "CE promoted through strong relationships with individual companies," and a "CE relating to specific materials and products."
DX will be essential to realize a CE. Utilizing assetforce, the in house-developed asset management cloud service, will make it possible to manage the materials and usage/repair history of the products we own. By building an information platform that utilizes blockchain technology, we aim to increase data reliability and create a stable traceability function.
If it becomes possible to reliably manage data on assets through these initiatives, we believe that this could lead to developments in business, including the securitization and liquidation of lease contracts linked to the various data. We are also giving consideration to the development of financial products for investors that will contribute to a CE.
List of Solutions
- Property ownership and management through various means, including leases, rental, and subscription
- Buying and selling of used equipment (such as semiconductor manufacturing equipment and machine tools) [Forward Logistics Domain]
- Demolition and disposal contracting for equipment and plants [Reverse Logistics Domain]
- Waste management services and circular economy consulting [Forward Logistics Domain] [Reverse Logistics Domain]
- Business matching [Forward Logistics Domain] [Reverse Logistics Domain]
- Traceability of goods utilizing digital technology [Forward Logistics Domain] [Reverse Logistics Domain]
Property ownership and management through various means, including leases, rental, and subscription
SMFL boasts expertise in the management of equipment across the entire lifecycle, including contract data management and the collection and disposal of products. By having the lease company bear the burden of owing the equipment, companies are able to concentrate use. Against this backdrop, we support efforts aimed at realizing Product as a Service (PaaS), which is indispensable for bringing to fruition a circular economy in which products are used only when needed and for as long as needed.
- Leasing
- Realizing a sales method that enables the tracing of products through sales promotion activities (sales financing) using leases
- Rental
- Engaging in the maintenance and refurbishment of rental products to facilitate their long-term use
- ※ Provided the SMFL Group company SMFL Rental Co., Ltd.
- Subscription
- Engaging in the smooth provision of subscription-type services by positioning SMFL as the asset holder
Purchase and sale of used equipment (semiconductor manufacturing equipment, machine tools, etc.)
SMFL has established a website to buy and sell used machinery and equipment in order to address the selling and purchasing needs of customers.
Buying and Selling of Used Semiconductor Manufacturing Equipment
In 1994, we pioneered the buying and selling of used semiconductor manufacturing equipment in the industry. We operate globally and now have one of the world's largest handling scales. Leveraging our financial company's "funding power" and the "assessment ability" cultivated over many years in the semiconductor manufacturing equipment industry, we secured all three major large-scale projects for semiconductor manufacturing line releases in Japan in 2021. In recent years, we have also focused on technical service operations associated with used equipment trading. Our specialized engineers and partner companies are meeting various needs at our customers' factories.
- ※The used semiconductor manufacturing equipment purchase and sale as well as ancillary technical services businesses were transferred to SMFL MIRAI Partners Co., Ltd. on October 1, 2024.
Collaboration with manufacturers
Restoring a grinding machine scheduled to be scrapped to like-new condition
SMFL purchased a grinding machine that had been used by a customer in the manufacturing industry for 30 years and was earmarked for disposal. Okamoto Machine Tool Works Ltd. and GIKEN CORPORATION LTD. overhauled and restored the machine to like-new conditions for secondary use.
Improving the reuse rate by adding manufacturer maintenance and inspection service for used machines
SMFL engages in the sales of used machinery that it has leased or purchased from customers. In supplementing these activities with the maintenance and inspection services of Makino Inc. at our used machinery and equipment machining centers, we have witnessed an upswing in the number of customers.
General contracting for equipment and plant dismantling and disposal
SMFL's strategic subsidiary, SMFL MIRAI Partners Co., Ltd., established the joint venture company, SMART Incorporated, with ARBIZ Corporation in April 2019. In response to customers' business restructuring, consolidation and reorganization, and plant closure needs, we are contributing to the realization of a circular economy by facilitating the reuse of machine tools and recycling of scrap metal, including steel frames, rebar, electric wires as well as stainless steel and aluminum piping through plant dismantling work.
Waste management services and circular economy consulting
SMFL’s strategic subsidiary, SMFL MIRAI Partners Co., Ltd., established the joint venture company, Circular LinX Co., Ltd., to focus on the waste management business with AMITA HOLDINGS CO., LTD. in April 2024. Through this new company, we provide integrated services by combining the waste management system business and BPO business offered by SMFL and AMITA CORPORATION.
Services provided by Circular LinX
- Sustainable BPO「Linx BPO」
- Outsourcing total waste management operations to increase sophistication and efficiency
- Waste management system「LinX Management」
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Enhancing statutory and regulatory compliance and centralizing waste management operations through the use of management systems
- Cyano Project
- Developing new businesses and promoting innovation related to the realization of a circular economy through accompanied and support-type consulting
- ※The Cyano Project is a service of the AMITA Group.
Corporate matching
In order to realize a circular economy, its is vital not only to collaborate between forward and reverse logistics companies, but also a wide variety of partners.
SMFL maintain an extensive network that transcends industry boundaries. In leveraging this strength, we assist in bringing circular design to fruition by introducing best-fit partners in a bid to resolve customers' issues.
Traceability of products using digital technology
Ensuring the traceability of products and materials is vital to realizing a circular economy. SMFL engages in the lifecycle management of products while sharing accompanying data among multiple companies.
Circular economy webinars
Webinars held in the past are as follows.
Related News
Execution of Memorandum of Understanding between SMFL, SMFL Rental and TES on joint development of lithium-ion battery recycling business（PDF : 193KB）
Initiatives for Renewable Energy Business
We have more than 5,600 records nationwide.
Solar, wind, biomass, small and medium hydro, geothermal. our company has one of the best track records in leasing in all areas of renewable energy. (Including the track record of SMFL MIRAI Partners in our group)
Performance by Renewable Energy Source
（As of the end of March 2025）
 Solar power |
 Wind power |
 Biomass |
 Hydropower |
 Geothermal power |
|
| Output | 1,730MW | 60MW | 84MW | 16MW | 5MW |
|
No. pf projects |
5,585 | 8 | 9 | 15 | 1 |
- ※Power generation capacity is calculated on a pro rata basis as a percentage of equity. (Including the track record of SMFL MIRAI Partners in our group)
Status of Renewable Energy Business
Case Study Map (as of the end of March 2025)
- ※Power plants operated by SMFL MIRAI Partners (Excluding low-pressure power plants)
