[Applicable to abnormal weather and diversified usage needs] CLAS and Mitsubishi Electric begin joint demonstration experiment to build a circular business model for air conditioners

CLAS Inc. (Head Office: Meguro-ku, Tokyo; Representative Director and President: Hirotake Kubo; hereinafter "CLAS"), which builds a circular ecosystem for interiors, is cooperating with Mitsubishi Electric Corporation (Head Office: Chiyoda-ku, Tokyo; Executive Officer and President: Kei Urukuma; hereinafter "Mitsubishi Electric") to launch a joint demonstration experiment (PoC) for a circular business model for wall-mounted air conditioners through its furniture and home appliance rental/subscription service "CLAS" (CLAS service site: https://clas.style/). Please note that this demonstration experiment will close once the scheduled number of applications is reached. Air conditioners are products that have a very large contribution to the circular economy due to their resource efficiency in manufacturing and use. In this demonstration experiment, Mitsubishi Electric's extensive knowledge in high technology and quality assurance, cultivated over many years, will be combined with CLAS's circular platform to formulate quality standards and verify operations for the "circular use (second-life use)" of air conditioners. Against modern social challenges such as reducing high room temperature conditions caused by severe heatwaves that pose heatstroke risks, changing needs from "disposable to circular use," and realizing a decarbonized society, this initiative presents a new option: "sharing and long-term use of high-quality air conditioners by society as a whole." ## Background and Purpose of the Demonstration Experiment ### **■ Establishing an operational foundation for the circular use of air conditioners** Air conditioners account for a large proportion of household electricity consumption, making them products for which efficient resource utilization is strongly demanded. For CLAS, which operates a circular platform for durable consumer goods, the circular use of air conditioners has been one of the most important themes for realizing a truly resource-circulating society. In this demonstration experiment, the value of Mitsubishi Electric's products, which boast "high durability and reliability," will be merged with CLAS's expertise in "circulating products." This aims to build a "new circular utilization network" that updates the lifecycle of home appliances themselves. ### **■ Spreading a "air conditioning infrastructure" that maintains a comfortable air environment even in abnormal weather** With severe heatwaves continuing, air conditioners have become an indispensable lifeline for maintaining a comfortable air environment. The purpose of this initiative is to verify whether a safe air conditioning environment can be delivered to various needs by providing Mitsubishi Electric's high-quality air conditioners through a monthly subscription service that reduces the burden of initial costs. It encourages smooth replacement from "old air conditioners that consume a lot of electricity" or "old models with uncertain performance" to the latest energy-efficient models, supporting an update to a consistently comfortable and efficient air conditioning environment. ### **■ Visualizing residual value and challenging zero waste** For products returned after use, Mitsubishi Electric's long-cultivated technical expertise will be reflected, and unique maintenance items and inspection standards will be formulated. By establishing an appropriate maintenance system to ensure products fulfill their original lifespan and connecting them to the next customer through CLAS's circular platform, this contributes to realizing a sustainable society where "usable products are never wasted." ## Social Contribution Through Circular Economy ### 1. Building an infrastructure for "sharing" that maximizes the lifetime value of products Instead of making air conditioners a "disposable" item for individuals, a system will be built where manufacturers' technology and the platform's operations care for products, enabling them to be used for a long time by society as a whole. By incorporating Mitsubishi Electric's high-quality products into CLAS's circular model, the aim is to "maximize lifetime value" by fully utilizing the inherent value of products, thereby creating a sustainable social infrastructure that eliminates resource waste. ### 2. Establishing a circular model of "repair and continuous use" towards "zero waste" Moving away from the traditional consumption cycle of "breakdown = disposal," we will accelerate the establishment of an operational model adapted to the unique demands of "circular use," which involves multiple installations and removals. Based on Mitsubishi Electric's advanced technical knowledge, we will verify a system that ensures products fulfill their original lifespan even with new usage patterns involving repeated relocations. By curbing the input of new resources required for new manufacturing and reducing the environmental burden from manufacturing to disposal, this contributes to achieving physical "zero waste." ### 3. Contributing to households and the environment through efficient energy use By utilizing a monthly subscription service to distribute the initial cost burden, the spread of high-performance, energy-efficient models will be promoted. By lowering the hurdle of initial costs and creating a system where everyone can easily choose high-performance air conditioners, we will encourage improvements in overall societal energy consumption efficiency. Furthermore, through operations based on circular use, products will be passed on to the next customer while maintaining their high energy-saving performance, fulfilling their lifespan. By achieving both "lowering the hurdle for introducing high-performance models through monthly fees" and "reducing waste through circular use," we present a concrete solution for realizing a carbon-neutral society and connecting a sustainable environment to future generations. ## Representative Comments ### ■ Hirotake Kubo, Representative Director and President, CLAS Inc. Air conditioners are an indispensable infrastructure for daily life, but their disposal and resource efficiency have been major challenges. We are extremely pleased to be able to build a new system that connects the "remaining lifespan" of products to the next customer, through the fusion of Mitsubishi Electric, boasting world-class technological capabilities, and our circular platform. Establishing a system where everyone can easily choose the latest energy-efficient models with low initial costs through a monthly payment not only reduces household burdens but also directly contributes to a decarbonized society. Through this demonstration experiment, we will accelerate the realization of a society where everyone can live lightly and in their own way, while being environmentally conscious, by making the option of "using products carefully for a long time" commonplace. ▼ Reference Articles METI "Circular Partners" Pioneers of the Circular Economy Interview with CLAS Representative Kubo: https://www.cps.go.jp/article/a04GA00001NGCKHYA5/%E3%82%B5%E3%83%BC%E3%82%AD%E3%83%A5%E3%83%A9%E3%83%BC%E3%82%A8%E3%82%B3%E3%83%8E%E3%83%9F%E3%83%BC%E3%81%AE%E5%85%88%E9%A7%86%E8%80%85%E3%81%9F%E3%81%A1-1 METI Circular Economy Special Site https://www.meti.go.jp/policy/energy_environment/shigenjunkan/circular_economy/action/article06/ Clothes, things, and lifestyles. The "spinning" choice creates a comfortable circular life Tokyo "TOKYO Ethical" https://www.ethical-action.tokyo/articles/4765/ Convenience and ethics can coexist: The sustainable choice of "renting furniture and home appliances" ## Target Models for Demonstration Experiment (Monthly Subscription) Two models of Mitsubishi Room Air Conditioner "Kirigamine" are available with reduced initial costs. * Mitsubishi Room Air Conditioner Kirigamine Slim Depth Model (S Series) https://clas.style/10760 * Mitsubishi Room Air Conditioner Kirigamine Premium Model (Z Series) https://clas.style/10763 *Please note that this demonstration experiment will close once the scheduled number of applications is reached. Thank you for your understanding in advance. ## What is 'CLAS'? 'CLAS' is a service that reduces initial costs and hassle, making it easy and convenient to use optimal durable consumer goods such as furniture and home appliances at any given time. It offers flexible choices to "rent" on a monthly basis, return when no longer needed, or "exchange" for optimal products. By repairing and cleaning returned furniture and home appliances after use, and reusing them, CLAS has avoided waste. A demonstration project by the Ministry of the Environment confirmed a 36% reduction in CO2 emissions and a 38% reduction in waste generation compared to traditional buy-and-keep business models (as of February 2023). *Impact created by CLAS: https://clas.style/company/news/227 **[Features of CLAS]** * More economical the longer you use it: 30% off from the 4th month of use, 50% off from the 13th month. * Assembly/Installation Option: You can leave the assembly and installation upon delivery to professionals. * Disposal of unwanted items: We pick up unwanted personal furniture and home appliances when you place an order (*3,300 yen/item). * No packing/disassembly required: For large items, professionals will disassemble and remove everything upon return, eliminating hassle. What is CLAS?: https://clas.style/article/1944 **[How to use CLAS]** 1. Select and order products: All procedures are completed online. After selecting your product, choose a pricing plan. 2. Receive products: You can also leave the entire assembly and installation process to us. 3. Use products: There is no return deadline. Use them freely according to your lifestyle. 4. Exchange/Return: You can return or exchange at any time after one month of use. How to effectively use "Furniture and Home Appliance Rental/Subscription": https://clas.style/article/1299 ## Company Overview ### ■ CLAS Inc. Location: Aobadai Studio 2F, 4-6-6 Aobadai, Meguro-ku, Tokyo Representative: Hirotake Kubo, Representative Director and President Established: April 24, 2018 Corporate Site: https://clas.style/company.html