Water Resources 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 the environmental impact. In addition to regularly measuring wastewater in accordance with laws and regulations, we also set voluntary 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 FY2026/3, 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 61 million yen in FY2026/3 to strengthen wastewater management.

The Daicel Group is promoting efficient water use. Each business site is monitoring water intake, discharge, and water consumption to reduce water risks 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 FY2026/3.

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^*1 and confirming water risk asssesments utilizing WWF Water Risk Filter,^*2 and TCFD scenario analysis of major operations. In the water risk assessment conducted in FY2026/3, we identified five business sites exposed to water stress and 12 business sites exposed to flood risk. After confirming their operational conditions and the status of their water risk management measures, we will implement preventive and damage mitigation measures as necessary. 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.