Sompo Japan, Sompo Risk Management, ORIX, and EcoCycle Launch the Contaminated Land Utilization Service
Sep 17, 2020
TOKYO, Japan - September 17, 2020 - Sompo Risk Management Inc. (“Sompo Risk Management”), Sompo Japan Insurance Inc. (“Sompo Japan”), EcoCycle Corporation (“EcoCycle”), and ORIX Corporation (“ORIX”) announced that today they will launch a Contaminated Land Utilization Service, which will combine remediation of contaminated land with proposals for real estate utilization.
1. Overview of the Contaminated Land Utilization Service
The Contaminated Land Utilization Service is a one-stop solution for the contaminated lands which will be problems when customers relocate, close, or sell their plants or other sites. The service offers contamination risk surveys, consultations with government organizations, contaminated soil remediation work, and land utilization proposals.
Sompo Risk Management oversees the service as a whole. It ensures conformity to laws such as the Soil Contamination Countermeasures Act, and arranges contamination risk assessments, administrative consultations, the design and management of remediation work, and soil contamination insurance.
Through Sompo Risk Management, Sompo Japan provides soil contamination insurance, which guarantees customers will be compensated for any excess costs incurred over and above the pre-agreed costs for implementing contamination countermeasures.
EcoCycle uses independently developed and produced purification agents to remediate contaminated soil according to the goals, budgets, timescales, and land uses of the service’s customers.
ORIX utilizes its wide-ranging expertise in the financial and real estate fields, as well as its nationwide corporate sales network, to propose and provide support for the optimal usage of land, based on the management needs of the service’s customers.
■ Key Features of the Contaminated Land Utilization Service
- The service provides soil contamination insurance supported by highly reliable remediation methods; since any excess costs are covered by insurance, customers can implement contamination countermeasures without having to worry about incurring additional costs.
- The remediation work provided by the service does not require land excavation; instead, biostimulation and oxidization agents are used on-site to purify and degrade contaminants. For this reason, the land being remediated can be used even while the remediation work is in process. For example, customers might rent land under remediation as metered parking or car parking, and assign any profit generated to pay for the remediation work.
At present, the number of Japanese small- and medium-sized businesses which are closing down, going bankrupt, or changing the content of their businesses is increasing; reasons include a lack of successors due to a shrinking and aging population, and the global spread of infectious diseases*1.
On the other hand, it is said that many companies are considering whether to cease operations for a different reason entirely: they have been using harmful substances that were not previously thought to be harmful; this has resulted in the potential risk of soil contamination*2.
In light of these circumstances, four companies with a wealth of expertise in various specialized fields are working together to provide a one-stop solution that covers everything from remediation work to land utilization proposals. In so doing, the companies hope to enable small- and medium-sized businesses to implement countermeasures with peace of mind in the face of potential soil contamination risks, and so utilize or securitize their land.
*1 “2020 White Paper on Small and Medium Enterprises in Japan,” published by the Small and Medium Enterprise Agency
*2 “Results of the survey on the enforcement status of the Soil Contamination Countermeasures Act and Soil Contamination Investigations and Countermeasures in FY 2017,” published by the Environmental Management Bureau, Ministry of the Environment in April 2019
3. Going Forwards
While ensuring they conform with relevant laws such as the Soil Contamination Countermeasures Act, Sompo Japan, Sompo Risk Management, ORIX, and EcoCycle intend, through this service, to provide active support for corporations compelled to carry out soil contamination surveys and implement contamination countermeasures.
Corporate Planning Department
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses.
Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since entering Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in 37 countries and regions across the world.
Going forward, ORIX intends to utilize its strengths and expertise, which generate new value, to establish an independent ORIX business model that continues to evolve perpetually. In this way, ORIX will engage in business activities that instill vitality in its companies and workforce, and thereby contribute to society. For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of March 31, 2020)
Caution Concerning Forward Looking Statements:
These documents May contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results that differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “(4) Risk Factors” of the “1. Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2019 – March 31, 2020.”
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