Water Resource Management

• Basic approach
• Targets and achievements
• Water risk assessment and response

Basic approach

Recognizing that water resources are one of the most important natural capitals, artience group is working to reduce water consumption and wastewater, reduce the impact of wastewater on the environment and living organisms, and identify and reduce water risks that affect business continuity. In January 2022, we formulated our sustainability vision ASV2050/2030 and set long-term environmental targets for water use. In order to achieve this goal, in addition to reducing water consumption through thorough circulating cooling and reuse and recycling after use, we will reduce water consumption by developing production processes that do not require water.

Targets and achievements

Targets

Goals in asv2050/2030

Achievements

The Group has been striving to reduce water consumption by thoroughly circulating cooling and using groundwater as cooling water and then as process water (reactions, cleaning, etc.). In fiscal 2023, water consumption in Japan was 2,505,000 m3 (down 12.4% from the previous year), of which 92.9% is groundwater. In addition, the amount of water used by overseas affiliates was 2,328,000 m3, an increase from the previous fiscal year.

Trends in water usage

Scope of calculation: Domestic major manufacturing facilities/factories and domestic affiliated companies, overseas: major overseas production affiliated companies

• Prevention of water pollution

Water risk assessment and response

Water risk is one of the most important risks faced by companies, along with economic crises, and it can affect corporate activities in a variety of ways, including flooding, drought, water pollution, and restrictions on available water.
The Group uses the World Resources Institute's Aqueduct Water Risk Atlas 4.0 version to assess quantitative risk, qualitative risk, and regulatory and reputational risk at each watershed.
In Japan, none of the business sites were rated as "High" ~ "Extremely High" in terms of overall water risk, but seven business sites rated the quantitative risk as "high." On the other hand, in the Asian region other than Japan (Southeast Asia, India, China, Taiwan, and South Korea), more than half of the business sites are rated as "high~remarkably high" in terms of overall water, quantitative and qualitative risks. In particular, the risk of "water stress" is significantly higher in Thailand and India, the "risk of river flooding" is high in Vietnam, Indonesia, and Myanmar, and the "risk of coastal flooding" is significantly higher in South China. Qualitative risks are also shown to be significantly higher in Southeast Asia and India. The projections for 2030 in the Business as usual (BAU) scenario at Akiduct showed that the risk of "water stress" will worsen at 17 sites and the risk of "water demand" at 24 sites. In particular, water stress is evaluated as "predicted to deteriorate significantly" in Thailand and India.
The Group regularly conducts flood preparedness drills at business sites with a high flood risk while implementing measures taken by TOYO INK (THAILAND) CO., LTD., which has experienced large-scale flooding in the past (relocation of electrical equipment, installation of sandbags, clarification of electricity shut-off procedures, etc.).
Going forward, we will continue to work to make effective use of water and reduce the amount of water used in preparation for water stress and water demand, which are expected to worsen in the future.

Scope of aggregation: Bases in the Asian region excluding Japan that were rated as "high or remarkably high" among the 44 business sites surveyed in Japan and overseas using the Akiduct 4.0 version