Appropriate Management of Water Resources

Concept

The manufacturing sites of the Kobelco Group use large quantities of water for cooling, cleaning, and other purposes, and we recognize that water shortages constitute a risk. There is also the risk of operations being impacted by flood damage such as torrential rain, which tends toward increasing severity. Furthermore, we recognize that violations of environmental laws and regulations, ordinances, and agreements carry the risk of affecting the environment and living things in public waters. On the other hand, we see the business of purifying water and providing safe water as an opportunity.

The WRI Aqueduct evaluation shows that the risk of water shortages and flood damage at our Group domestic production sites is low. Nevertheless, to prepare for all eventualities, we are working to reduce the amount of water resources used and increase the water recycling rate by promoting more efficient water use in the production process and more extensive use of recycled water. In addition, to address wastewater risks, we will not only comply with regulations, but will also strive to reduce the discharge of pollutants into public water areas by cleaning up wastewater from the production process with a treatment system suitable for the characteristics of the wastewater.

Management Structure

The Environmental Management and Disaster Prevention Subcommittee deliberates, reports, and evaluates policies, action plans, and results of initiatives concerning the appropriate management of our Group’s water resources at least once a year. This management cycle is properly implemented. Important matters are reported and submitted to the Executive Council through the Sustainability Management Committee (chair: Executive Vice President and Representative Director), to which the subcommittee reports.

Targets

We have set the following targets and are working to address water shortage and wastewater risks

Results

At each business location, we are recycling water to use again at the site after purifying wastewater from each production process through coagulation sedimentation, sand filtering, and other means. Additionally, by purifying water with a treatment system suitable for wastewater from the manufacturing process, we are working to promote the use of recycled water and reduce the pollutant load of wastewater discharged into public water areas.

In the treatment of wastewater, approximately 50% of the total amount is treated with advanced tertiary treatment, reducing the impact of pollution it may cause.

In fiscal 2022, the water recycling rate was 96%, thus achieving the target.

Water pollutant load in fiscal 2022 was COD: 213 tons/year; and total phosphorus: 4 tons/year, thus achieving targets.

Water Intake, Discharge, and Recycling Rate Data for the Past Three Years
(Kobe Steel, Ltd.; Unit: 10,000 m3)1

Item Fiscal 2020 Fiscal 2021 Fiscal 2022
Water withdrawal by source
Freshwater (tap water and industrial water
provided by the waterworks bureau in each area)2
4,782 5,067 5,106
Groundwater 510 525 550
Seawater for cooling 257,072 263,576 337,340
Water withdrawal total3 262,364 269,169 342,996
Water discharge total by discharge destination
Rivers 183 190 201
Sea water 259,652 266,145 339,894
Sewage 56 71 67
Discharge total 259,891 266,406 340,162
Discharge by each treatment method4
No treatment (including discharge to sewage) 471 426 440
Simple treatment 900 902 867
Standard treatment 17 21 20
Advanced treatment 1,433 1,481 1,493
Freshwater withdrawal and discharge
Water withdrawal total 4,782  5,067  5,106
Water discharge total 2,820  2,829  2,822
Consumption 2,472  2,763  2,834
Total recycled water 124,441 125,392 129,129
Recycling rate5 96% 96% 96%

Data on Water Pollution Load*

 Item Target Fiscal 2020 Fiscal 2021 Fiscal 2022
Water discharge total - 2,598.13 million m3 2,664.06 million m3 3,401.62 million m3
COD 474t 243t 244t 213t
Phosphorus 23t 3t 3t 4t
Water Recycling Status (including domestic Group companies with significant water use)

Each Kobelco Group business site remains aware of regulatory water quality requirements and evaluates their compliance with these levels. Please see below for water discharge data for each business site, including the results of water quality measurements.

Development of Water Management Plans in the Group

Of the Group’s 32 major production sites in Japan, 17 that account for 53% have formulated water management plans, monitor water intake, discharge, and recycling; and are working to properly manage water resources and reduce environmental impact.

Initiatives to Reduce Water Usage at Business Sites

At Kakogawa Works, we are promoting the effective use of water resources, such as by monitoring withdrawal and discharge through continuous measurement of flow rates at drains, and by recycling water to use again at the site after purifying wastewater from each production process through coagulation sedimentation, sand filtering, etc. In this way, the water recycling rate reaches approximately 97%.

Collaboration with External Bodies to Reduce Water Use

In Toyama Prefecture, where Nippon Koshuha Steel Co., Ltd. is located, the amount of water allocated to companies is ensured, but in order to leave enough water for snow clearing, every year the prefecture calls on factories, workplaces, offices, and snow-clearing equipment managers to voluntarily save water from December to February. In order to do its part, Nippon Koshuha Steel is working to reduce its water usage as much as possible.

Contributing to a More Vibrant Ocean

While water quality has improved in the Seto Inland Sea (Harima Sea) due to wastewater regulations, the discoloration of seaweed and the decrease in fish catch due to lack of nutrients have become serious issues.

In response to this situation, the Act on Special Measures concerning Conservation of the Environment of the Seto Inland Sea was revised, and in 2022, Hyogo Prefecture formulated its “Nutrient Management Plan.” Kakogawa Works has been selected as a “nutrient increase action implementer (nitrogen),” and will contribute to the creation of a vibrant ocean by operating in accordance with the Nutrient Management Plan.

Preparation for Flood Damage and Other Natural Disasters

As the type and severity of a natural disaster can vary by site, each site regularly checks the latest hazard maps provided by local authorities and prepares for the risk accordingly

Evaluation of Water Shortage and Water Stress

Every year, each business site estimates the amount of water it expects to use in the subsequent fiscal year and determines whether the amount of contracted industrial water meets its needs. When a water shortage is anticipated, each business site secures substitute water resources and evaluates how this will affect production.

The Head Office evaluates water stress of the region where the business sites are located with WRI Aqueduct and reports any problems (if any) to necessary directors and officers.

In the WRI Aqueduct assessment for fiscal 2022, none of the Group’s business sites or Group companies in Japan are located in regions of high water stress or above and no production sites posed issues. In addition, we have secured a certain volume of water from the supply sources, and we believe that the risk of water withdrawal affecting production is low.

At Kakogawa Works, for example, the risk of water intake affecting production is thought to be low because upstream from the water used is the Gongen Dam (total storage capacity: 11.12 million m3), constructed to ensure a stable supply of industrial water from the Kakogawa River as well as the Kakogawa Weir (total storage capacity: 1.96 million m3) and Heiso Dam (total storage capacity: 9.40 million m3), which were constructed to ensure the flow rate of industrial water.

Assessment of Supply Chain Water Shortages and Water Stress

As well as identifying risks from past cases of flood damage in areas from which we procure raw materials, we analyze water risk in those areas using WRI Aqueduct, and are working to diversify raw materials suppliers based on the results of this risk analysis.

Expenses Associated with Water-Related Risks and Investment to Mitigate Water-Related Risks

R&D expenses for water treatment-related projects and water pollution prevention projects used for the prevention of abnormal water discharge or inspection/maintenance of water treatment facilities are presented below.

(Millions of yen)

Item Fiscal 2020 Fiscal 2021 Fiscal 2022
Capital
investment
Expense Capital
investment
Expense Capital
investment
Expense
Expenses for water
pollution prevention*
210 3,940 80 4,660 150 5,490
R&D expenses for water treatment-related projects - 530 - 320 - 470

* Results for Kobe Steel, Ltd. For details, see the “Environmental Management” page.

Compliance with Laws and Regulations

We comply with regulatory limits stipulated by laws and regulations. If stricter regulatory limits have been set by agreements with local governments, we strive to comply with them.

There was one case in Japan where water quality values exceeded regulation standards. The case was discovered by self-inspections and promptly reported to the relevant authorities, with action taken. No fines or punishments were imposed.

Overseas Group companies were fined 30,000 yuan (approximately 900,000 yen) for exceeding water quality regulations.

Response to the CDP Water Security Questionnaire

Kobe Steel, Ltd. has been responding to questionnaires from CDP* since fiscal 2009. Please refer to the following for our response to the 2023 Water Security Questionnaire.

* An international NGO working on environmental issues. It sends environment-related questionnaires to companies and compiles the results to analyze and evaluate on a common scale.

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