Transforming empty promises into reality through teamwork

This series follows Dentsu Inc.'s 'Company Design' team as they uncover the secrets behind vibrant companies with 'originality.' In the 30th installment, we introduce ECOMMIT, a 'circular trading company committed to the planet' based in Kagoshima. What is President Teruyuki Kawano, who founded the company at the tender age of 22 in 2007, aiming for? We delved into the essence of his vision.

"I think the trigger for launching this business was less a 'sense of mission' and more 'indignation'. I wasn't afraid," President Kawano opened the interview. This was his response to my question: "Weren't you afraid to launch a new business at the tender age of 22?" I see. While it's common to be crushed by the pressure of a sense of mission, it's rare to hear of someone being crushed by indignation. His experience at a used equipment export company, where he started working immediately after graduating high school, continues to shape him today. "What surprised me first was seeing worn-out appliances and such restored to sparkling condition. At the same time, I was also struck by the thought, 'Huh? Something's off about this industry.'"

Greed for money or ambition for advancement is surprisingly fragile. It constantly carries the risk of snapping clean off at the slightest provocation. Indignation, on the other hand, is healthy. Precisely because it is healthy, it can sometimes be blocked by various obstacles. President Kawano modestly states this venture is still only halfway there, but I am eager to learn about the "great dream" he envisions beyond that point.

Written by: Yuji Toyotomi (Dentsu Kyushu Inc.)

We aspire to be the infrastructure supporting future manufacturing and corporate management

President Kawano countered with a question: "When you hear 'circular trading company,' what kind of company do you imagine? What do you think it does?" I thought I'd done my homework for this interview, but hmm, what exactly does that mean in a nutshell? Is it something like system development leveraging DX? As I pondered this, the answer came: "We are neither a collection company nor a recycling company. We are not environmental consultants or system engineers. We are a company that provides the infrastructure supporting future manufacturing and corporate management."

The word "infrastructure" might make you think of factories, but as the interview progressed, the true meaning began to emerge, albeit vaguely. In a nutshell, it could be described as "a company that tangibly builds the ideal form of a genuine circular society." President Kawano's frequent use of "genuine" and "truly" is, in a sense, the keyword.

Teruyuki Kawano: CEO, ECOMMIT
After graduating high school, he joined a used goods export company. Following a four-year apprenticeship, he founded ECOMMIT at age 22. After founding the company, he witnessed firsthand the environmental impact of Japanese electronic waste exported to China. He immediately halted all overseas exports of untraceable used goods and refocused on environmental issues. Currently, he leads nationwide initiatives to promote circular economy projects for companies and municipalities, centered around proprietary systems developed in-house.

One person's "unwanted" is another person's "need." That's where I saw the potential for business expansion.

President Kawano explains: "Someone's 'unwanted' becomes someone else's 'need'. And that can cross national borders. That's where I saw the potential for business expansion. The most exciting part is the sheer size of the market. It's an immense scale that one person alone can't tackle; it demands teaming up with like-minded partners to take on the challenge. For example, Japan's convenience store market is roughly ¥7.6 trillion, while supermarkets represent ¥18.5 trillion.*¹ In contrast, the circular economy business market is worth 38 trillion yen (fiscal year 2007 figures*²). Aren't you overwhelmed by this figure alone?"

*¹Source: Industry Trends Search (Convenience Stores) / Industry Trends Research (Supermarkets)
*²Source: Ministry of the Environment
 

I didn't know that. For instance, buying a new car or purchasing a condominium involves significant money, effort, and dreams, giving you a real sense of scale. But when you hear "actions to realize a circular society," the first thing that comes to mind might just be sorting garbage. Whether aware of my thoughts or not, President Kawano continued. "A large scale means the challenges to overcome are also large. For instance, while waste separation itself is an important effort, it alone doesn't have the power to drive a massive market." He had me beat.

ECOMMIT is a circular trading company that builds infrastructure for goods to circulate through business, aiming to "realize a society without waste." With seven physical recycling centers nationwide, it collects and sorts unwanted items for redistribution, expanding the scope and sectors of this circular infrastructure. Furthermore, it provides comprehensive services tailored to the needs of companies and municipalities to realize circular cycles. This includes calculating reuse and recycling rates, reporting CO2 reduction amounts, and even a traceability system that digitizes the entire "flow of goods" from collection to redistribution. (Photo: At the time of founding. President Kawano is holding his newborn son.)

The "dark side of the industry" witnessed overseas

Here, I asked about the origin of the company name ECOMMIT. "To be honest, I was tired of the word 'ECO'." Tired here means "bored" or "fed up." "It gets thrown around too casually, right? The word 'ECO'. Even when something isn't truly ECO at all, just labeling it as such makes it seem like you're doing something good. When I talk about ECO, I want to pursue what is 'truly' ECO, 'seriously'. That's when the word 'COMMITMENT' came to mind. I thought, 'Ah, combining this with ECO could clearly express what our company aims for.' You could say it's ECO, but coming full circle."

The part about "things that aren't actually eco-friendly at all" stuck with me, so I asked, "What do you mean by that?" "Right after graduating high school, I got a job at a used goods export company. But in China, our main export destination, I saw things I shouldn't have seen. We sell worn-out products overseas, right? We get the money, and it feels satisfying, like 'Ah, that's a relief.' But the working conditions there? They're hardly eco-friendly. Rubbish shipped from Japan piled up in mountains, and wages were low. Seeing that scene, I was crushed, realizing, 'Ah, this is the 'dark side' of the industry,' while simultaneously feeling an overwhelming sense of discomfort and anger welling up inside me."

From "High Economic Growth" to "High Circular Growth"

My business partners don't hesitate to call me the 'ultimate scaredy-cat'. And honestly, they're right. When it comes time to act, I can be reckless and charge ahead, but fundamentally, I'm the type who deliberates extensively beforehand. That's why, when an acquaintance invited me to go to China together, I agreed without hesitation. This cautious nature—wanting to know everything, wanting to be prepared—leads to a heightened sense of crisis and naturally builds resilience against the crises that come."

President Kawano's "resilience" truly shines when there's no turning back. "We're now forced to shift from high economic growth to high circular growth. Put another way, we're in an industry that must keep growing. If we do nothing, what awaits us is 'social death'. This isn't just about mission or responsibility anymore. We have no choice but to unite as a team and push forward."

President Kawano states, "The larger our business grows, the more we can contribute to society and the world." He emphasizes that this requires not just spouting nice-sounding platitudes, but creating mechanisms where people and companies pursuing ideal environments can profit, allowing them to truly experience genuine prosperity. The thoughts of President Kawano, who stated at the beginning of the interview, "We are not system engineers," and his vision of fighting against platitudes, finally began to feel tangible.

Their initiative to "support corporate brand resale" is one such effort. Companies that value pride in their brand often wish for their products to be resold through repairs or refurbishment. They have absolutely no mindset of just wanting to sell and make a quick profit. "That said, collecting their own products is extremely difficult for manufacturers. Our goal is to help build the infrastructure for these manufacturing companies – that's how we respond to their needs. Visiting each customer individually to deliver reborn branded goods via courier isn't a viable business model. But by creating a sophisticated circular logistics model, we can provide sustainable solutions not just at individual points, but across a broader 'area'."

A system that creates endless "circulation" will support society going forward.

From here in Kyushu, we will transform Japan and the world.

Starting April 2023, ECOMMIT launched its original brand "PASSTO," providing end-to-end services for collecting, sorting, and redistributing unwanted items. PASSTO is a coined term short for "PASS TO," meaning "pass it on to the next person, connect it to the future." By placing unwanted item collection boxes at locations along people's daily routes—like post offices, train stations, commercial facilities, and apartment buildings—the aim is to make the act of "passing on, not throwing away" feel familiar, ultimately realizing a "society that doesn't discard."

"Simply by implementing a system where people who bring unwanted items to PASSTO receive points usable in their local area, for example, we can create a participatory circular society involving diverse people. We believe it is this kind of steady infrastructure development that will support the society of the future."

PASSTOis anoriginalbrandthat handles the collection, sorting, and redistribution of unwanted items all in one go. For frequently asked questions about PASSTO, click here.

When Kyushu moves, Japan moves. That phrase crossed my mind. Passion and initiatives originating from Kyushu inevitably become movements, spreading even to distant lands across the sea. Indeed, President Kawano's sights are set on Thailand next, following China. It's a country where the reuse and recycling market has been growing rapidly in recent years.

In building such new bases, the location of Kyushu seems to hold tremendous potential. Looking back at history, the list is endless: the discovery of the gold seal, the legend of Yamatai, the Mongol invasions, the introduction of firearms and Christianity, Hideyoshi's invasion of Korea, trade at Nagasaki's Dejima, the overthrow of the shogunate by the Satsuma-Choshu Alliance, the Satsuma Rebellion, and the modern Tanegashima Space Center...

Among these, Kagoshima, overlooking the Pacific Ocean and the East China Sea, is a truly captivating and luxurious place where pioneering movements, both past and present, "inevitably happen." Of course, it goes without saying that it offers a truly luxurious environment for enjoying sea fishing, one of President Kawano's hobbies.

Setting aside the "catch," gazing at the best sunset from his favorite spot. That moment is what fuels President Kawano's drive for work.

Through partnerships with over 30 municipalities, ECOMMIT handles Japan's top-tier variety of items beyond just clothing, achieving collection from approximately 1,300 locations nationwide. Positioning its current 15th fiscal year as its second founding phase, the company is expanding its business to "realize a society without waste." It aims to be a brand promoting the circular economy, encompassing lifestyle formation for consumers, not just businesses and municipalities. Key initiatives include the "Wear to Fashion" textile collection service in the Japanese market, a business partnership project with ITOCHU Corporation, and the original brand "PASSTO," introduced earlier in this article.

Visit ECOMMIT's website here.
 

This series explores the secrets behind "vibrant companies" with "originality," investigated by Dentsu Inc. 'Company Design' team. The 30th installment introduced ECOMMIT, a "circular trading company committed to the Earth" based in Kagoshima.

See Season 1 of the series here.
Visit the "Company Design" project site here.

[Editor's Note]

Before the interview, I reviewed various materials. Among them, the description that a circular society is composed of "arterial industries" and "venous industries" was particularly intriguing. It's a specialized and rather complex term. But when applied to the human body, it becomes very clear.

The flashy part is the "arterial industries." They powerfully deliver fresh blood (new products in industrial terms) to every corner of the body. But it's the "venous industries" that collect these and guide them back to the path of renewal. Without either, a healthy state cannot be maintained. If you "can't eat," "blood circulation" stagnates, and "waste can't be expelled," death awaits.

"In that sense, ECOMMIT ultimately wants to be the 'heart' supporting healthy industries and a healthy planet," says President Kawano. His choice of "heart" rather than "brain" is very characteristic of him. It's not about thinking with the head, but about seeking the ideal form of a healthy, sound industrial structure cultivated through experience, and committing to society. It made me realize once again: what truly needs discarding is humanity's ego—the pretense and posturing, the empty platitudes.