Reducing Water-related Risks

Basic Concept

Minimizing water-related risks and solving local community and supply chain water issues

We formulated SEKISUI Environment Sustainability Vision 2050 in 2019 in line with the belief that sustainable operations and development of our businesses requires us to maintain a sound environment in the areas in which we conduct our corporate activities. To realize societies with abundant access to clean water in all the areas in which SEKISUI CHEMICAL Group and its supply chains operate, we have established the following two goals in line with our vision.

<Goals>

  • 1.
    Minimizing water-related risks at SEKISUI CHEMICAL Group
    With the goal of maintaining sustainable operations, SEKISUI CHEMICAL Group will seek to minimize water-related risks. We will also focus on minimizing risks related to water discharged from Group operations in order to better preserve biodiversity.
  • 2.
    Contributing to the solution of water-related issues in local communities
    We will contribute to solving local water issues through products to enhance sustainability and collaboration with watershed stakeholders, aiming not only to minimize water-related risks but also to return positively to natural capital.

Impact of Water-related Risks on the Supply Chain

Manufacturers of steel materials used in the housing business and manufacturers of synthetic resins used in the plastics business are suppliers of raw materials to SEKISUI CHEMICAL Group that consume large quantities of freshwater during their manufacturing processes. Although we do not directly call on such suppliers to conform to environmental standards, with our Sekisui Environment Sustainability Index we calculate as use of natural capital the environmental impact of the pollutants contained in drainage generated during the manufacturing process of primary materials and monitor it on a continual basis.
We also evaluate the degree of contribution to the environment through the reduction of impact on the water environment in the Group's business activities and the expansion of products and services that contribute to the improvement and maintenance of the water environment as return to natural capital*.
From fiscal 2020, we have continued to gain a better understanding of, for example, the water-related risks in our supply chains involving products and the impact of reducing water-related risks by products on returns to natural capital and social capital.

Contribution to the Reduction of Water-related Risks Through Business Operations

SEKISUI CHEMICAL Group develops a range of businesses related to water infrastructure, such as supply, storage, and drainage of water, contributing to society, not only through technologies and products that help to improve the quality of drainage, such as water treatment systems and drain pipes, but also by creating strong water infrastructure made to withstand natural disasters.
For example, the Cross Wave* rainwater collection system, one of our products being marketed in Japan, India, China, Taiwan, and other ASEAN areas, reduces water-related risks. Cross Wave is used to contribute to measures against chronic water shortages, recycling rainwater for both the greening of urban areas and disaster prevention, and also contribute to minimizing the damage caused by floods.
With the goal of not only reducing damage from the ever-increasing number of disasters brought on by climate change, but also promoting disaster mitigation in support of recovery efforts after a disaster, we are expanding the peace of mind we can offer to our housing customers by recommending, for example, the installation of a drinking water storage system that uses water infrastructure piping.

  • * Cross Wave:
    Rainwater storage system. This molded product made from recycled plastic creates an underground space which is used to store rainwater. It regulates the rain volume flowing into sewer systems and rivers during torrential rains and makes reuse of rainwater possible.

Reduction of Water-related Risks at Business Sites with High Water Intake Volume and Discharge Volumes

SEKISUI CHEMICAL Group draws the water it needs to use in its business activities from public water systems, industrial water systems, underground reservoirs, and surrounding rivers.
With the understanding that water is a precious natural resource shared in the community, we do our best to reduce the amount of water used, such as by reusing cooling water.
We have to date established targets and enacted measures for reducing Water intake volume and chemical oxygen demand (COD) of discharged water at each of our production and research facilities. However, based on local water-related risk conditions and the state of water consumption, we will focus on promoting reduction of water use at business locations where the impact on business is particularly large.

Targets

Water-related Risks

Aim: Maintain water resources

Indicator 1. Water intake volume at production sites which use large quantities of water

Current Medium-term Management Plan (2020-2022) Target -10%
Fiscal 2022 Result -7.8% (compared with fiscal 2016)
Next Medium-term Management Plan (2023-2025) Target -10% (compared with fiscal 2016)
Fiscal 2030 Target ー
Fiscal 2050 Target ー

Indicator 2. Total COD volume of river discharge water at production sites with large COD emission volumes

Current Medium-term Management Plan (2020-2022) Target -10%
Fiscal 2022 Result -14.3% (compared with fiscal 2016)
Next Medium-term Management Plan (2023-2025) Target -10% (compared with fiscal 2016)
Fiscal 2030 Target ー
Fiscal 2050 Target ー

Roadmap to Realize Societies with Abundant Access to Clean Water

SEKISUI CHEMICAL Group has set the goal of realizing societies with abundant access to clean water by 2050, which is the target year of its SEKISUI Environment Sustainability Vision 2050. By backcasting from this goal, we are establishing specific measures and milestones while promoting initiatives.

  • We will evaluate local water-related risks and their business impacts and select business sites and suppliers where the business impact is large, and sites where water-related risks are substantial.
  • For business sites where the business impact is substantial, we will initiate steps to minimize this impact by 2023 in line with the risks of each site.
  • For suppliers where the business impact is substantial, we will minimize risk by 2030, through such factors as a review of suppliers.
  • For business sites where water-related risks in the region are substantial, we will minimize environmental impact by 2030.
  • We will create monitoring guidelines and oversee all sites for both business and environmental impacts.

In order to accelerate returns to natural capital, including the conservation of water resources, we will work to help solve regional water issues and minimize the environmental impact across the supply chain by continuously promoting the development of products to enhance sustainability.
Moreover, as an initiative being undertaken at business sites around the world, we will work to help solve regional water issues by building a collaborative system with watershed stakeholders from 2030 to 2050.

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Roadmap

Assessment of the Impact on Businesses from Water-related Risks

In fiscal 2020, the first year of the roadmap for 2050, we conducted assessments of the likely impact on business from water-related risks at all SEKISUI CHEMICAL Group production sites and research institutes.
The Group had conducted a water risk survey in 2013, however seven years have passed. Since then, some business sites have been newly established or closed, and therefore we conducted the survey again.
The purpose of this survey was to identify water-related issues in the areas in which each business site is located (assessment of external factors) and to identify those sites that exhibit major water-related risks and those that have a significant impact on the environment.
We undertook quantitative assessments of the business impact of water-related risks as well as the impact on the environment of our business activities in a bid to identify the water-related issues of the local area. In doing so, we used assessment results drawn from Aqueduct Water Risk Atlas 3.0, a tool for assessing water-related risks in each region of the world created by the World Resources Institute (WRI), an international environmental NGO, and information on water use obtained from individual business sites through questionnaires.
In undertaking assessments, we followed the criteria recommended in the Guidelines for Setting Water Targets for Companies* issued by the CEO Water Mandate.
In fiscal 2022, we identified initiatives to minimize the impact on business according to the specified water-related risks and set specific quantitative targets at the five domestic and overseas sites that were evaluated as having a large business impact. Moving forward, we will begin implementing these initiatives in fiscal 2023.

  • Setting Site Water Targets Informed By Catchment Context: A Guide For Companies
System
Major Initiatives

Reduction of Water Intake Volume, and Chemical Oxygen Demand (COD) of Discharged Water

In fiscal 2022, Water intake volume at production sites increased by 0.7% compared with results of the base fiscal year 2016 while decreasing by 3.5% compared with the previous year. This reflects the installation of equipment that control the volume of direct water intake from rivers at production sites in Japan that consume large volumes of water and the effects of reduction endeavors.
The COD of water discharged decreased by 16% compared with results of the base fiscal year of 2016, and decreased by 15% compared with the previous year. This is due to improvements in wastewater treatment water quality at domestic production sites, which have a high drainage volume.

Examples of capex using the environmental contribution investment incentive program

Base year: Fiscal 2016
  Site Reduction strategy Result (Expected)
Reduction in Water intake volume Shiga-Minakuchi Plant Introduction of filtration equipment allowing the reuse of recycled wastewater as a coolant.
Strengthen management and promoted visualization of water use at the facility.
Reduction of 9%
Sekisui Medical Co., Ltd.
Iwate Plant
10% reduction through automation of industrial water intake adjustment Reduction of 10%
Reduction in wastewater COD Sekisui Nano Coat Technology Co., Ltd. Improve treatment capacity by upgrading wastewater treatment facility Reduction of 25%

Increase of Water Treatment Capacity at Sekisui Nano Coat Technology Co., Ltd.

At Sekisui Nano Coat Technology Co., Ltd., wastewater with high-concentration COD is discharged from the degluing and refining processes of textile products and, after passing through their in-house wastewater treatment equipment, is discharged into the sea.
In recent years, the amount of wastewater has been decreasing due to changes in business domains. Also, the COD of wastewater has become difficult to eliminate due to changes in the composition of the glue used in raw materials. Accordingly, we have made improvements to optimize the capacity of the wastewater treatment equipment.
Treatment capacity has improved by making the treatment process more compact according to the amount of decrease in wastewater and installing a process in which microorganisms suitable for the treatment of persistently decomposed COD particles are optimized.
In fiscal 2022, COD volume of water discharged decreased by 64% compared with 2016 results.

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Sekisui Nano Coat Technology wastewater treatment facility

Water Recycling

SEKISUI CHEMICAL Group promotes the reuse of water in its production processes in order to reduce the amount of water it draws from water sources. At the production plants of the UIEP and HPP companies, large volumes of cooling water are recycled and reused in the manufacturing process. In fiscal 2022, at production sites in Japan and overseas, we used 106 million cubic meters of recycled water. This is equivalent to 5.1 times the total Water intake volume.
In Hasuda City, where the Musashi Plant is located, the wastewater purified at the Musashi Plant in accordance with environmental standards is used as the main water source for Lake Kurohama*, which is designated as a nature conservation area in Saitama Prefecture.

See the following website for details regarding Kurohama Lake.

Performance Data
  • Note 1:
    From fiscal 2019, Medical Business results have been collated separately following its independence from the HPP Company and the presentation of Headquarters results reclassified as Other.
  • Note 2:
    In line with a change in the control of certain businesses in the UIEP and HPP companies implemented from October 2022, the data of both companies for fiscal 2022 is collated as if the change in control had been initiated from the beginning of fiscal 2022.
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  • Water Intake Volume at Production Sites / Japan

  • Water Intake Volume at Production Sites / Overseas

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  • Wastewater Discharge at Production Sites / Japan

  • Wastewater Discharge at Production Sites / Overseas

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  • Water Consumption at Production Sites / Japan

  • Water Consumption at Production Sites / Overseas

Water Intake Volume at Production Sites by Water Source (Base year = 2016)

(thousands of m3)
Water source Regions All regions Areas in regions with water stress
2016 2018 2019 2020 2021 2022 2016 2018 2019 2020 2021 2022
Surface water Japan 696 197 726 129 185 18 0 0 0 0 0 0
China 0 0 0 0 0 0 0 0 0 0 0 0
Southeast Asia and Oceania 0 0 1 3 0 0 0 0 1 3 0 0
Europe 0 0 0 0 0 0 0 0 0 0 0 0
North and Central America 0 0 0 0 0 0 0 0 0 0 0 0
Total 696 197 727 131 185 18 0 0 1 3 0 0
Ground water Japan 2,604 2,632 2,517 2,340 2,238** 2,232 0 0 0 0 0 0
China 0 0 0 0 0 0 0 0 0 0 0 0
Southeast Asia and Oceania 103 144 111 121 132 125 25 35 16 22 24 29
Europe 0 0 0 0 0 0 0 0 0 0 0 0
North and Central America 4 0 0 0 5 21 0 0 0 0 0 0
Total 2,710 2,776 2,628 2,461 2,375** 2,378 25 35 16 22 24 29
Seawater Japan 0 0 0 0 0 0 0 0 0 0 0 0
China 0 0 0 0 0 0 0 0 0 0 0 0
Southeast Asia and Oceania 0 0 0 0 0 0 0 0 0 0 0 0
Europe 0 0 0 0 0 0 0 0 0 0 0 0
North and Central America 0 0 0 0 0 0 0 0 0 0 0 0
Total 0 0 0 0 0 0 0 0 0 0 0 0
Third-party water* Japan 12,086 12,389 10,903 11,250 11,824** 11,199 0 0 0 0 0 0
China 273 324 265 247 243 226 236 311 256 241 235 222
Southeast Asia and Oceania 896 966 1,093 957 1,087 1,168 18 72 80 55 42 79
Europe 1,943 1,866 1,960 1,674 2,527 2,603 1,857 1,805 1,887 1,606 2,444 2,527
North and Central America 2,042 2,732 3,092 3,165 3,297 3,194 10 156 141 94 121 132
Total 17,241 18,278 17,313 17,293 18,977** 18,390 2,121 2,344 2,365 1,996 2,842 2,959
Total volume of water withdrawn Japan 15,386 15,218 14,146 13,719 14,247 13,449 0 0 0 0 0 0
China 273 324 265 247 243 226 236 311 256 241 235 222
Southeast Asia and Oceania 999 1,110 1,204 1,081 1,219 1,292 44 107 97 80 65 107
Europe 1,943 1,866 1,960 1,674 2,527 2,603 1,857 1,805 1,887 1,606 2,444 2,527
North and Central America 2,046 2,732 3,092 3,165 3,301 3,216 10 156 141 94 121 132
Total 20,646 21,250 20,668 19,885 21,537 20,785 2,146 2,379 2,382 2,021 2,866 2,988
  • *
    Third-party water: Water withdrawn from local government water suppliers (public water systems, water systems for industrial use)
  • **
    Some past figures have been revised due to improvements in precision.

Wastewater Discharge at Production Sites by Discharge Destination (Base year = 2016)

(thousands of m3)
Discharge destination Regions All regions Areas in regions with water stress
2016 2018 2019 2020 2021 2022 2016 2018 2019 2020 2021 2022
Surface water Japan 11,219 11,353 10,680 10,179 10,623 10,183 0 0 0 0 0 0
China 0 0 0 0 0 0 0 0 0 0 0 0
Southeast Asia and Oceania 22 20 43 18 13 22 2 0 22 4 1 8
Europe 0 0 0 0 0 0 0 0 0 0 0 0
North and Central America 0 0 0 0 0 0 0 0 0 0 0 0
Total 11,241 11,372 10,722 10,197 10,636 10,205 2 0 22 4 1 8
Ground water Japan 0 0 0 0 0 0 0 0 0 0 0 0
China 0 0 0 0 0 0 0 0 0 0 0 0
Southeast Asia and Oceania 0 0 0 0 0 0 0 0 0 0 0 0
Europe 0 0 0 0 0 0 0 0 0 0 0 0
North and Central America 0 0 0 0 0 0 0 0 0 0 0 0
Total 0 0 0 0 0 0 0 0 0 0 0 0
Seawater Japan 2,892 2,277 2,160 2,293 2,205 2,149 0 0 0 0 0 0
China 0 0 0 0 0 0 0 0 0 0 0 0
Southeast Asia and Oceania 0 0 0 0 0 0 0 0 0 0 0 0
Europe 0 0 0 0 0 0 0 0 0 0 0 0
North and Central America 0 0 0 0 0 0 0 0 0 0 0 0
Total 2,892 2,277 2,160 2,293 2,205 2,149 0 0 0 0 0 0
Third-party water* Japan 591 636 567 515 622 586 0 0 0 0 0 0
China 272 308 255 237 233 218 235 296 246 232 226 214
Southeast Asia and Oceania 679 830 860 790 881 883 26 103 60 54 37 59
Europe 1,930 1,860 1,944 1,664 2,511 2,592 1,857 1,805 1,875 1,601 2,439 2,521
North and Central America 1,585 1,981 2,060 2,012 2,177 2,138 9 79 81 62 62 73
Total 5,057 5,615 5,685 5,219 6,424 6,417 2,127 2,283 2,262 1,949 2,764 2,867
Total Volume of Wastewater Japan 14,703 14,266 13,407 12,987 13,449 12,918 0 0 0 0 0 0
China 272 308 255 237 233 218 235 296 246 232 226 214
Southeast Asia and Oceania 701 850 902 809 895 904 29 103 83 58 38 66
Europe 1,930 1,860 1,944 1,664 2,511 2,592 1,857 1,805 1,875 1,601 2,439 2,521
North and Central America 1,585 1,981 2,060 2,012 2,177 2,138 9 79 81 62 62 73
Total 19,190 19,265 18,567 17,709 19,265 18,770 2,129 2,283 2,285 1,952 2,765 2,874
  • Third-party water: Wastewater (sewer systems) discharged to wastewater treatment facilities of local governments, etc.

Water Consumption at Production Sites (Base year = 2016)

(thousands of m3)
Regions All regions Areas in regions with water stress
2016 2018 2019 2020 2021 2022 2016 2018 2019 2020 2021 2022
Japan 683 952 739 732 798 531 0 0 0 0 0 0
China 1 16 10 10 9 8 1 16 10 10 9 8
Southeast Asia and Oceania 298 260 302 272 324 388 15 4 15 22 27 41
Europe 13 6 17 9 16 11 0 0 13 5 6 6
North and Central America 461 751 1,032 1,153 1,125 1,078 1 77 60 33 59 59
Total 1,456 1,985 2,101 2,176 2,272 2,015 17 97 98 69 101 114
Indicator Calculation Method
Water intake volume Water intake volume = Total Water intake volume = (The sum of water intake from surface water, ground water, seawater, and third-party water)
Wastewater discharge Wastewater discharge = Total wastewater discharge = (The sum of wastewater discharged to surface water, ground water, seawater, and third-party wastewater)
Water consumption Water consumption = Water intake volume - wastewater discharge
Areas in regions with water stress Areas where Baseline Water Stress is ranked as High or Extremely High under the WRI Aqueduct Water Risk Atlas (Aqueduct 3.0) Evaluation System
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  • COD Discharge / Japan

Indicator Calculation Method
COD Discharge Discharge = Σ[COD concentration (annual average of measured values) x Water discharge volume]