Appropriate Management of Water Resources

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 in our facilities by promoting more efficient water use in the production process and the use of recycled water and improving the water recycling rate. In addition, to address wastewater risks, we will not only comply with regulations, but we 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.

The Environmental Management & 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, to which the subcommittee reports.

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

Of the Group’s 32 major production sites in Japan, 14 that account for 44% have formulated water management plans, monitor water intake, discharge, and recycling; and are working to properly manage water resources and reduce environmental impact.

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%.

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.

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.

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 executive officers.

In the WRI Aqueduct assessment for fiscal 2021, 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 tons), 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 tons) and the Heiso Dam (total storage capacity: 9.40 million m³), which were constructed to ensure the flow rate of industrial water.

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.

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.

In fiscal 2021, there were three cases in Japan where water quality values exceeded regulation standards, and one overseas. All the cases were discovered by self-inspections and promptly reported to the relevant authorities. No fines or punishments were imposed.

Kobe Steel, Ltd. has been responding to questionnaires from CDP,¹ an international NGO, since fiscal 2009. Please refer to the following for our response to the 2022 Water Security Questionnaire.