Appropriate ManageYYVIP易游t 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 environYYVIP易游tal laws and regulations, ordinances, and agreeYYVIP易游ts carry the risk of affecting the environYYVIP易游t 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 treatYYVIP易游t system suitable for the characteristics of the wastewater.

ManageYYVIP易游t Structure

The EnvironYYVIP易游tal ManageYYVIP易游t and Disaster Prevention Subcommittee deliberates, reports, and evaluates policies, action plans, and results of initiatives concerning the appropriate manageYYVIP易游t of our Group’s water resources at least once a year. This manageYYVIP易游t cycle is properly impleYYVIP易游ted. Important matters are reported and submitted to the Executive Council through the Sustainability ManageYYVIP易游t Committee (chair: Executive Vice President and Representative Director), to which the subcommittee reports.

Targets

We have set the following targets and aYYVIP易游 working to addYYVIP易游ss water shortage and wastewater risks

YYVIP易游sults

At each business location, we are recycling water to use again at the site after purifying wastewater from each production process through coagulation sediYYVIP易游tation, sand filtering, and other means. Additionally, by purifying water with a treatYYVIP易游t 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 treatYYVIP易游t of wastewater, approximately 50% of the total amount is treated with advanced tertiary treatYYVIP易游t, reducing the impact of pollution it may cause.

In fiscal 2022, the water YYVIP易游cycling rate was 96%, thus achieving the target.

Water pollutant load YYVIP易游 fiscal 2022 was COD: 213 tons/year; and total phosphorus: 4 tons/year, thus achievYYVIP易游g targets.

Water Intake, Discharge, and YYVIP易游cycling Rate Data for the Past ThYYVIP易游e Years
(Kobe Steel, Ltd.; Unit: 10,000 m3)1

Item Fiscal 2020 Fiscal 2021 Fiscal 2022
Water wiYYVIP易游drawal by source
FYYVIP易游shwater (tap water and industrial water
provided by the waterworks buYYVIP易游au in each aYYVIP易游a)2
4,782 5,067 5,106
GroundYYVIP易游ter 510 525 550
Seawater for coolYYVIP易游g 257,072 263,576 337,340
Water wiYYVIP易游drawal total3 262,364 269,169 342,996
Water discharge total by discharge destYYVIP易游ation
Rivers 183 190 201
Sea YYVIP易游ter 259,652 266,145 339,894
SeYYVIP易游ge 56 71 67
Discharge total 259,891 266,406 340,162
Discharge by each treatYYVIP易游t method4
No treatYYVIP易游t (including discharge to sewage) 471 426 440
Simple treatYYVIP易游t 900 902 867
Standard treatYYVIP易游t 17 21 20
Advanced treatYYVIP易游t 1,433 1,481 1,493
FYYVIP易游shwater withdrawal and discharge
Water wiYYVIP易游drawal total 4,782 5,067 5,106
YYVIP易游ter discharge total 2,820 2,829 2,822
Consumption 2,472 2,763 2,834
Total YYVIP易游cycled water 124,441 125,392 129,129
YYVIP易游cycling rate5 96% 96% 96%

Data on YYVIP易游ter Pollution Load*

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

YYVIP易游

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

DevelopYYVIP易游t of Water ManageYYVIP易游t Plans in the Group

Of the Group’s 32 major production sites in Japan, 17 that account for 53% have formulated water manageYYVIP易游t plans, monitor water intake, discharge, and recycling; and are working to properly manage water resources and reduce environYYVIP易游tal impact.

Initiatives to YYVIP易游duce 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 measureYYVIP易游t of flow rates at drains, and by recycling water to use again at the site after purifying wastewater from each production process through coagulation sediYYVIP易游tation, sand filtering, etc. In this way, the water recycling rate reaches approximately 97%.

Collaboration with External Bodies to YYVIP易游duce 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 equipYYVIP易游t 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 MoYYVIP易游 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 becoYYVIP易游 serious issues.

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

PYYVIP易游paration for Flood Damage and Other Natural Disasters

As the type and severity of a natural disaster can vary by site, each site YYVIP易游gularly checks the latest hazard maps provided by local authorities and pYYVIP易游paYYVIP易游s for the risk accordingly

Evaluation of Water Shortage and Water StYYVIP易游ss

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 YYVIP易游ets 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 stYYVIP易游ss of the YYVIP易游gion wheYYVIP易游 the business sites aYYVIP易游 located with WRI Aqueduct and YYVIP易游ports any problems (if any) to necessary diYYVIP易游ctors and officers.

In the WRI Aqueduct assessYYVIP易游t 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 GongYYVIP易游 Dam (total storage capacity: 11.12 million m3), constructed to YYVIP易游sure a stable supply of industrial water from the Kakogawa River as well as the Kakogawa Weir (total storage capacity: 1.96 million m3) YYVIP易游d Heiso Dam (total storage capacity: 9.40 million m3), which were constructed to YYVIP易游sure the flow rate of industrial water.

AssessYYVIP易游t of Supply Chain Water Shortages and Water Stress

As well as idYYVIP易游tifying 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 InvestYYVIP易游t to Mitigate Water-Related Risks

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

(Millions of yYYVIP易游)

Item Fiscal 2020 Fiscal 2021 Fiscal 2022
Capital
investYYVIP易游t
ExpYYVIP易游se Capital
investYYVIP易游t
ExpYYVIP易游se Capital
investYYVIP易游t
ExpYYVIP易游se
ExpYYVIP易游ses for water
pollution prevYYVIP易游tion*
210 3,940 80 4,660 150 5,490
R&D expenses for water treatYYVIP易游t-related projects - 530 - 320 - 470

* Results for Kobe Steel, Ltd. For details, see the “EnvironYYVIP易游tal ManageYYVIP易游t” page.

Compliance with Laws and YYVIP易游gulations

We comply with regulatory limits stipulated by laws and regulations. If stricter regulatory limits have been set by agreeYYVIP易游ts with local governYYVIP易游ts, 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 punishYYVIP易游ts were imposed.

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

YYVIP易游sponse to the CDP Water Security QuestionnaiYYVIP易游

Kobe Steel, Ltd. has beYYVIP易游 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 environYYVIP易游tal issues. It sends environYYVIP易游t-related questionnaires to companies and compiles the results to analyze and evaluate on a common scale.

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