Water Resource Preservation

The Daicel Group manufactures a variety of chemical products, and water is essential to our production processes. For example, we use water in a variety of processes including heating, cooling, and washing, and water is used for equipment that removes and discharges the chemical substances we produce in our production process. We purify the water we use and discharge almost all of it into rivers and oceans.^*

At each plant, wastewater is purified to a water quality that can be discharged into rivers and oceans through the stable operation of advanced wastewater treatment facilities, contributing to reducing environmental impact. In addition to regularly measuring wastewater in accordance with laws and regulations, we also set voluntary setting targets for wastewater standards and total discharge that are stricter than those required by laws and regulations, and strive to preserve water quality by keeping wastewater levels below these targets.

In FY2025/3, we continued proper management based on our voluntarily set targets, and there were no serious legal violations with regard to water resource conservation.

When formulating new business plans, we evaluate the effects of wastewater on water quality in advance by operating the Total Environmental, Health and Safety Assessment System. To fulfill our responsibilities as a manufacturer, we take measures to avoid the risks of water pollution from all causes. This includes improving wastewater treatment facilities in collaboration with facility manufacturers and developing wastewater simulation technology jointly with universities and other institutions. Furthermore, Daicel’s business sites invested 93.3 million yen in FY2025/3 to strengthen wastewater management.

The Daicel Group is striving to reduce water intake at all of its business sites. Each business site has set a medium-term target of 10% reduction compared to FY2019/3 levels by FY2026/3 as the final year, and is promoting efficient water use. At cooling towers and other facilities, we are working to recycle cooling water and reduce the amount of water used. Each business site is monitoring water intake, discharge, and water consumption to reduce water risk and to review the manufacturing process, etc., and we are considering expanding these initiatives to other plants.

Since FY2017/3, we have responded to the CDP^*water security questionnaire, a program for the global disclosure of information concerning water-related risks posed by companies. We received a “B” rating as a result of our responses to the CDP water security questionnaire conducted in FY2025/3.

The Daicel Group conducts disaster risk assessments on floods and storm surges according to Japan’s Fundamental Plan for Regional Resilience, which strengthen our preparedness for large-scale natural disasters at our production sites in Japan. Overseas, we conduct risk assessments through mapping surveys utilizing Aqueduct,^*confirming water stress areas (areas of water shortages where the freshwater resources per capita are below 1,700m3), and TCFD scenario analysis of major operations.Based on these, we address water-related risks by taking preventive actions and measures for mitigating damage, and have determined that the water risk for each of our production sites is low, for both Japan and overseas. Furthermore, in relation to risks affecting business activities, led by the Risk Management Committee, the Daicel Group conducts regular risk assessments for proper identification and management of these risks.