Prevention of Water Pollution

Basic Approach and Policies

Water resources are indispensable for the survival of living organisms, including humans, and are also the foundation for socio-economic systems. However, increasing water stress and water pollution due to population growth and economic development have become significant problems.
The SAKATA INX Group recognizes that water is an important form of natural capital that is indispensable for its business activities, and is working to reduce its environmental impact by reducing water consumption and using appropriate wastewater treatment, as well as identifying and reducing water risks.

Governance

Water resource governance is overseen by the Sustainability Committee, which is chaired by the President and CEO, and includes all directors. In addition, various other committees, which are subordinate organizations of the Sustainability Committee, identify various risks, including measures to conserve water resources within the Group, and deliberate on response measures. The Sustainability Committee meets semi-annually (twice a year) to approve important environment-related policies and targets, including measures to conserve water resources, and to manage their progress.
 
Additionally, our Risk & Compliance Committee works to identify and prevent risks relating to water resources, and respond to them as and when they occur, based on our Risk Management Regulations. Risks and response measures are monitored and periodically evaluated, reviewed, and revised according to the situation.

▼Governance structure

Water Risk Analysis

Water supply instabilities and flooding in the river basins where production bases are located are expected to have a significant impact on business activities. For this reason, we identify water risks at each site, implement appropriate measures to ensure business continuity, and establish business continuity plans (BCP).
 
In FY2023, as a primary assessment (screening), water stress and river flood risk assessments were conducted for all SAKATA INX Group production sites (a total of 32 sites, including overseas) using Aqueduct Water Risk Atlas Aqueduct 4.0, a water risk assessment tool developed and published by the World Resources Institute (WRI).

▼Water stress assessment results (32 sites in 16 countries) Numbers in the table are the number of bases

 Risk levels are classified into five levels: extremely high, high, medium-high, low-medium, and low.

		Extremely high	High	Medium-high	Low-medium	Low	Total

Asia	Japan			2	2		4
	Indonesia		1				1
	Malaysia					1	1
	Vietnam			1	2		3
	Philippines			1			1
	Thailand	1	1				2
	India			2			2
	Bangladesh	1					1
	China	1		1		1	3
	Taiwan				1		1

Americas	U.S.A.		2	1	1	3	7
	Brazil			1	1		2

Europe	U.K.				1		1
	Spain	1					1
	Germany		1				1
	Czech					1	1

Total

4

5

9

8

6

32

▼Water stress assessment results (32 sites in 16 countries) Numbers in the table are the number of bases

 Risk levels are classified into five levels: extremely high, high, medium-high, low-medium, and low.

		Extremely high	High	Medium-high	Low-medium	Low	Total
Asia	Japan			2	2		4
	Indonesia		1				1
	Malaysia					1	1
	Vietnam			1	2		3
	Philippines			1			1
	Thailand	1	1				2
	India			2			2
	Bangladesh	1					1
	China	1		1		1	3
	Taiwan				1		1
Americas	U.S.A.		2	1	1	3	7
	Brazil			1	1		2
欧州	U.K.				1		1
	Spain	1					1
	Germany		1				1
	Czech					1	1
Total		4	5	9	8	6	32

As a result of the survey, water stress levels at four sites － in Thailand (Bangkok), Bangladesh (Dhaka), China (Shanghai), Spain (Barcelona) － were found to be extremely high. In the future, we will prioritize these bases to track current situation and formulate response measures.
In Japan, there are no facilities or assets in areas with high water stress, and no associated production or revenue.
Regardless of water stress levels, we will continue working to make effective and appropriate use of water resources.

▼River flood risk assessment results (32 sites in 16 countries) Numbers in the table are the number of bases

		Extremely high	High	Medium-high	Low-medium	Low	Total

Asia	Japan				2	2	4
	Indonesia	1					1
	Malaysia				1		1
	Vietnam	1	2				3
	Philippines			1			1
	Thailand	2					2
	India		2				2
	Bangladesh	1					1
	China		1	1	1		3
	Taiwan				1		1

Americas	U.S.A.			2	2	3	7
	Brazil				2		2

Europe	U.K.					1	1
	Spain					1	1
	Germany					1	1
	Czech					1	1

Total

5

5

4

9

9

32

▼River flood risk assessment results (32 sites in 16 countries) Numbers in the table are the number of bases

		Extremely high	High	Medium-high	Low-medium	Low	Total
Asia	Japan				2	2	4
	Indonesia	1					1
	Malaysia				1		1
	Vietnam	1	2				3
	Philippines			1			1
	Thailand	2					2
	India		2				2
	Bangladesh	1					1
	China		1	1	1		3
	Taiwan				1		1
Americas	U.S.A.			2	2	3	7
	Brazil				2		2
Europe	U.K.					1	1
	Spain					1	1
	Germany					1	1
	Czech					1	1
Total		5	5	4	9	9	32

To conduct more detailed risk assessments for four plants in Japan (Tokyo, Osaka, Shiga, Hanyu) and five plants with "extremely high" water stress levels (Indonesia (Jakarta), Vietnam (Hanoi), Thailand (Bangkok), Thailand (Sinsakhon), Bangladesh (Dhaka)), we conducted flood simulations using 1.5℃ and 4℃ scenarios with the cooperation of Gaia Vision, a University of Tokyo startup. In comparison with Aqueduct, which only evaluates on a drainage basin basis, the web application Climate Vision (climate change and flood risk management platform) provided by Gaia Vison is considered to yield more accurate analysis results, due to its accurate representations of river topography.
We estimated the amount of financial impact based on the estimated rate of damage to facilities based on the calculated flood depth, and the number of days of business suspension.

In Indonesia (Jakarta) and Thailand (Sinsakhon), the inundation depth in the event of a flood (considered to be a probability of once in 100 years) was analyzed to be 0m in the 4℃ scenario. It is not included in the financial impact.

For each of our four plants in Japan, we have established a code of conduct in the event of storm or flood damage. As an additional measure to prevent flooding, we have also stockpiled materials and equipment such as sandbags and waterstop boards.
In January 2024, we established BCP regulations, and established the BCM Subcommittee. Going forward, we will continue to make further efforts to manage the Group's risks and advance BCM.

Reduction of Water Consumption

In FY2023, we* used water resources for equipment cleaning, heating, cooling, and products, etc., and drew 71,000 m³ of third-party water (tap water and industrial water supplies), 45,000 m³ of groundwater, 7,000 m³ of surface water, and 2,000 m³ of produced water. In addition, we discharged 77,000 m³ of third-party water (sewage) and 4,000 m³ of surface water (into rivers).

　* Scope of calculation: SAKATA INX CORPORATION's plants, head offices, and regional offices (including affiliated companies within offices)

We have set targets for a 3％ reduction in water consumption at our domestic plants (excluding water used for products and living use) in FY2026 and 6％ in FY2029 in comparison with FY2023, and will work to achieve these targets going forward.

Management indicator	Base fiscal year	Target year	Reduction targets
Water consumption at Japanese plants*	FY2023	FY2026	(3％)
		FY2029	(6％)

　* Excluding use in products and living use

Prevention of Water Pollution

We work to prevent water pollution by treating wastewater generated at our plants with wastewater treatment equipment before discharging it to the outside. We also conduct regular water quality inspections based on ordinances and agreements established by local governments in our jurisdiction to monitor wastewater quality.
The graph below shows changes in BOD and COD calculated from measured values and wastewater. Total volumes in FY2023 were 0.3t and 0.02t, respectively.

Initiatives for Effective Use of Water Resources (Japan)

	FY2023
Number of violations of environmental laws and regulations relating to water quantity and quality	0
Fines relating to the above	0 yen