#Japan #circular economy #ESG Performance #Okayama #Tsuginohi

Introduction

Tsuginohi Co., Ltd. is at the forefront of promoting a circular economy model designed to enhance both environmental sustainability and business growth. This innovative approach not only focuses on improving operational efficiencies but also emphasizes tangible environmental value, such as CO₂ reduction and resource circulation. This article delves into Tsuginohi's recent performance metrics, including growth indicators, sustainability efforts, and investments in human capital.

Business Growth and Financial Performance

In terms of financial evolution, Tsuginohi has experienced remarkable growth. The company's revenue soared from 80 million yen in its first fiscal year to a staggering 1.13 billion yen in the seventh year—a staggering increase of approximately 14.5 times. The ambitious target for the eighth fiscal year is set at 2 billion yen. The most recent growth rate reached an impressive 133% for the seventh year, reflecting strategic investments in workforce expansion and infrastructure development over the previous year.

Expanding Transaction Base

The number of businesses integrated into Tsuginohi’s system has also significantly increased, growing from 451 in the first year to 5,171 in the seventh year. This figure comprises 4,568 sales companies, 80 corporate buyers, and 523 individual buyers. The continuous increase in business partnerships is a testament to the company’s commitment to establishing enduring relationships rather than ephemeral transactions.

Repeat Rate as an Indicator of Trust

Using Salesforce CRM data, Tsuginohi evaluates its customer retention through repeat purchase rates. As of July 2025, the repeat purchase rate stands at 73.67% for buying services and 55.20% for sales, indicating that more than half of sales transactions originate from existing customers, underlining the company’s successful approach to customer relationship management.

Environmental Impact and ESG Commitment

As part of its commitment to environmental, social, and governance (ESG) principles, Tsuginohi has made significant strides in demonstrating its environmental values through quantifiable metrics. Since its inception, the company has successfully reduced CO₂ emissions by 1,783 tons and recycled 188 tons of iron. Additionally, it has processed 40,782 recycled parts, showcasing its robust recycling capabilities. The economic impact of its operations has further been substantiated—providing clients a total cost savings of 4 billion yen, reflecting Tsuginohi's dual focus on profitability and sustainability.

Human Capital as Growth Investment

Instead of viewing human capital as a mere cost, Tsuginohi considers it a vital investment for growth. By continuously improving staff development, training, and standardization practices rooted in the workplace, the company ensures the sustainability of its growth model. As of November 2025, Tsuginohi reports an average monthly overtime of 20 hours, a turnover rate of 3%, and an average employee tenure of three years, emphasizing its dedication to fostering a supportive workplace environment.

External Validation of Organizational Quality

To further establish its commitment to a healthy work culture, Tsuginohi achieved recognition from Great Place To Work® Institute Japan in June 2025. This third-party validation of its employee-centric initiatives indicates that the company is not just focused on corporate reputation but genuinely committed to reducing operational risks through its workforce.

Company Overview

Tsuginohi Co., Ltd. was established on July 2, 2018, and its headquarters is located in Soja City, Okayama Prefecture. The firm specializes in automobile parts recycling and developing environmental technologies, with a brand statement that reflects its mission: ‘Connecting for a Greener Earth.’

• - Corporate Headquarters:

Tsuginohi Co., Ltd.
1448-1 Makabe, Soja City, Okayama Prefecture, Japan

• - Tokyo Office:

5F 3rd Koike Building, 1-1-11 Kitashinagawa, Shinagawa, Tokyo, Japan

• - Representative: Seima Kurokawa
• - Website: Tsuginohi Official Site

Conclusion

In conclusion, Tsuginohi Co., Ltd. exemplifies how a business can thrive by embedding sustainability into its core strategy through circular economy principles. By aligning business growth with environmental responsibility, the company sets a benchmark for others to follow in the journey toward sustainable business practices.