Yucho Asset Management Backs Circular Economy Firm ECOMMIT to Tackle Japan’s Apparel Waste
Yucho Asset Management has executed an investment in ECOMMIT, a Kagoshima-based enterprise focused on resource circulation. The capital injection was made through the JP Investment Regional Impact Fund No. 1, a vehicle dedicated to fostering regional economic revitalization and achieving UN Sustainable Development Goals (SDGs).
The investment targets a growing environmental concern in Japan, where approximately 60% of the domestic clothing supply is discarded. According to Ministry of the Environment data cited by Yucho Asset Management, roughly 460,000 tons of clothing are disposed of by households annually, highlighting a lag in the country's transition to a circular economy.
ECOMMIT operates under the vision of creating a "society that does not throw things away." The company currently manages seven specialized circular centers and logistics hubs nationwide. It also operates "PASSTO," a resource circulation service that places collection points in accessible community locations such as post offices, commercial facilities, and residential buildings, offering consumers a streamlined way to hand down unwanted goods rather than discarding them.
ECOMMIT plans to utilize the funds from this round to accelerate infrastructure development for resource circulation. Key initiatives include the digital transformation (DX) and automation of the ECOMMIT Tokyo Circular Center, as well as the nationwide expansion and enhancement of the PASSTO service network.
Yucho Asset Management noted that the investment aligns with the fund’s mandate to generate positive social impact and support SDGs. The asset manager expressed confidence in ECOMMIT’s leadership under CEO Teruyuki Kawano and the company's integrated platform for resource collection, sorting, and redistribution.
Fund & Company Details
The JP Investment Regional Impact Fund No. 1 was established on April 1, 2022, with a 10-year lifespan and a total capitalization of ¥12 billion. The fund’s limited partners include Japan Post Bank (¥8 billion) and Japan Post Insurance (¥4 billion). It is managed by JP Investment Regional Impact LLC, a subsidiary set up by Yucho Asset Management.
Founded in October 2008, ECOMMIT is headquartered in Satsumasendai City, Kagoshima Prefecture.
Norbert Gehrke
