Water and Drainage

Water resources

There is a white, square building by the pond in the factory, and trees grow along the edge of the pond.

 The NOF Group makes efforts for the use and management of water resources as well as the appropriate treatment and management of plant wastewater in accordance with the Management Policy Regarding Responsible Care.
 To this end, each plant and subsidiary is working on the following items. 

 (1)Operation and management of specified
    facilities and wastewater management
    based on the Water Pollution Prevention
    Law
 (2)Thorough employee education on
    environment-related laws
 (3)Assessment of environmental impact when
    new facilities are established
 (4)Review of management status through internal audits
 (5)Disclosure of information through regular community dialogue

Use of water resources
 NOF has been carrying out the efficient use of water resources by estimating the volume of water resources intake and wastewater volume. The volume of water intake of the Domestic Group in fiscal 2020 amounted to 8.498 million m3, of which 1.402 million m3 was groundwater and 2.183 million m3 was city water.
 For the appropriate management and protection of water resources, we conduct employee education and awareness-raising activities, recognize the importance of sustainable water use, and work to reduce water consumption. Our water usage per million yen of sales has improved by approximately 7% over the last two years, making us less dependent on water use.

|Water consumption                      (thousand tons/year)
Category FY2020 FY2021 FY2022 FY2023
NOF Volume of water intake 5,874 5,889 6,007 5,988
City
water
801 794 751 759
Industrial water 4,300 4,322 4,351 4,359
Ground water 773 774 905 869
Water effluent 4,846 4,939 5,022 5,283
Volume of water used 1,028 950 985 705
Domestic
Group
Volume of water intake 6,434 6,447 6,535 6,484
City
water
831 829 782 793
Industrial water 4,300 4,322 4,351 4,359
Ground water 1,304 1,297 1,402 1,332
Water effluent 6,161 6,297 6,091 5,763
Volume of water used 273 150 444 721
NOF
Group
Volume of water intake 8,318 8,419 9,498 8,358
City
water
1,938 2,100 2,184 2,103
Industrial water 5,077 5,022 4,912 4,923
Ground water 1,304 1,297 1,402 1,332
Water effluent 6,551 6,642 6,421 6,090
Volume of water used 1,767 1,777 2,077 2,268
Volume of water used / sales (ton / million yen) 10.2 9.2 9.5 10.2

Volume of wastewater by discharge destination
 The NOF Group discharges approximately 61%, or 3,692,000 m3, of the wastewater generated at each production site to seawater after appropriate treatment. In addition, 31% is discharged to surface water, including rivers, and the remaining 9% to other organizations.

|Changes in volume of wastewater by discharge【NOF Group】   (Thousand m3/year)
Category 2020 2021 2022 2023
Surface water 2,564 2,595 2,403 1,863
Groundwater 0 0 0 0
Seawater 3,377 3,479 3,483 3,692
Discharge to other organizations 610 568 535 535
Total 6,551 6,642 6,421 6,090

Water stress (drought) assessment
 Water stress (drought)*1 was assessed at domestic and overseas production sites using Aqueduct tools from the World Resources Institute (WRI). In 2024, we found that our European and Southeast Asian sites are in areas that will be under water stress in 2030. It is assumed that the risk of water stress will be even higher at our South American sites by 2050. We will continue our efforts to reduce water consumption.

|Drought risk assessment results by Aqueduct       (Number of production sites)
Drought risks Water stress 2024 2030 2050
Large Over 40% 2 2 3
Medium 20~40% 14 15 14
Small Under 20% 7 6 6

*1: Water stress is measured as the ratio of total water withdrawals to available, renewable surface and groundwater supplies. Water withdrawals include consumptive and non-consumptive uses for household, industrial, irrigation, and livestock purposes. Available, renewable water supplies include the impact that upstream consumptive water users and large dams have on downstream water availability.

Prevention of water pollution
 Plant wastewater resulting from production activities is properly treated through treatment facilities and discharged outside the plant. We monitor biochemical oxygen demand (BOD), chemical oxygen demand (COD), and suspended solids*2 among others contained in wastewater. Along with ongoing equipment upgrades, we are improving our water quality management system and operating in compliance with prescribed limits. In addition, there have been no cases of violations of laws and regulations related to water quality.

 

|Changes in wastewater monitoring items            (thousand tons/year)
Category FY2020 FY2021 FY2022 FY2023
NOF BOD 34 50 37 33
COD 60 67 44 52
Suspended solid emissions 33 31 22 36
Domestic
Group
BOD 38 52 39 36
COD 60 68 44 52
Suspended solid emissions 40 36 25 42
NOF
Group
BOD 104 93 67 74
COD 219 154 148 171
Suspended solid emissions 56 46 44 58
Violations of laws and regulations (no.) 0 0 0 0

*2: Particulate substances of 2 mm or less in diameter floating or suspended in water; one of the indicators of water quality.

Risks and opportunities

Category Major risks and opportunities Overview Countermeasures
Transition risks Tighter domestic and international regulations ● The introduction of new regulations makes it necessary to enhance facilities and strengthen management systems to comply with the new regulations, which increases the associated management costs
● New wastewater regulations make it impossible to manufacture products as they have been through now, resulting in reduced sales due to lost opportunities
● Increased capacity of wastewater processing facilities
● Development and provision of products with low environmental impact
Market ●At production sites in regions with high water risk, procurement costs rise due to higher water prices caused by water shortages
●At production sites in regions with high water risk, sales decrease due to lost opportunities when operations are interrupted at production plants due to frequent water outages caused by water shortages
● Aging water infrastructure causes unstable water supply and frequent water outages, interrupting operations at production plants and resulting in lost sales due to lost opportunities
● Study of efficient use of water
Deterioration of evaluation/reputation ● Delays in complying with regulations and in developing eco-friendly products damage the company’s evaluation from investors and its reputation among customers and local residents ● Enhancement of information disclosure on content of initiatives
Physical risks Natural disasters ● Due to prolonged heavy rainfall causing wastewater processing facilities to exceed their capacity, and damage to facilities caused by typhoons and other natural disasters, it becomes difficult to manage discharges, which in turn causes production to stop, resulting in lost opportunities and lost sales
● Water cutoffs and droughts due to natural disasters associated with climate change disrupt operations at production plants, resulting in reduced sales due to lost opportunities
● Increased flooding due to climate change damages production plants at risk of flooding, resulting in asset losses and reduced sales
● Leaks of pollutants
● Increased capacity of wastewater processing facilities
● Study of efficient use of water
Chronic risks ● Excessive groundwater intake causes land subsidence in areas surrounding plants using groundwater, resulting in large compensation for damages and decreased sales due to prolonged shutdowns (Aichi Works) ● Study of efficient use of water
Opportunities Growing needs for products that contribute to water pollution solutions 【Mitigation of water pollution】
● Anti-sticking agents for asphalt mixtures, eco-friendly stern tube bearing oil, biodegradable lubricants, antifreezing agents, lead-free products
● Development and provision of eco-friendly products
Improvement of evaluation and reputation ● Proactive emission control measures and the development and provision of products that make positive
contributions improve the company’s evaluation from investors and its reputation among customers and local residents
● Enhancement of information disclosure on content of initiatives

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