Responding to Water Risks and Opportunities

In order to secure sustainable water resources, the CITIZEN Group engages in activities, such as reducing water use through the adoption of high-efficiency equipment and promoting cyclical water use and cleaning up wastewater from plants through strict wastewater treatment and control, at all production facilities in Japan and around the world.

Water-Related Risks and Opportunities

  1. Identification of and management methods for water-related risks and opportunities
    We employ an integrated companywide risk-management system for water-related risks and opportunities similar to that employed for climate change. This process of identifying and responding to water-related risks and opportunities is implemented as part of our ISO 14001 system, which is subject to review by the Sustainability Committee, chaired by the president & CEO of CITIZEN WATCH, and under the control of the director responsible for environmental affairs. We also use WRI Aqueduct in annual reviews of water-related risks and opportunities three to five years in advance. The results of this assessment, adjusted for the local conditions of each facility, showed that the CITIZEN Group's business facilities do not include any production facilities in regions with high levels of water stress. We also keep related information up to date through constant communication with local industrial-park managers and government agencies. Although we carry out similar identification and assessment of water-related risks and opportunities during new business development and the construction of new plants, there were no projects subject to these processes in FY 2020.
  2. Business impacts of water-related risks and opportunities
    Water-related risks directly impact the value chain, including facility operation and parts procurement. If water-related regulations were to impact plant operation because of an unstable water supply as a result of flooding or a water shortage in unseasonable weather, then there is a risk that profitability could decrease as a result. No water-related opportunities have been identified that could effectively impact our businesses directly, such as those of new business creation.
    In addition, there were no cases of water-related legal or regulatory violations, fines, or penalties, or of our suffering from harmful effects related to water during FY 2020.

Efforts to Respond to Water Risks

As a response to water-supply risks and the means of promoting the use of sustainable water resources, we have set targets on reducing water use and withdrawal from water sources and are making improvements toward achieving these targets. To respond to such regulatory risks as those concerning water-related laws and regulations and to clean plant wastewater, we control wastewater through means that include monitoring of the quality of wastewater from treatment facilities and setting voluntary wastewater standards that are stricter than those in laws and regulations. At plants with industrial-park standards stricter than those in laws and regulations, we set plant wastewater standards through consultation with industrial-park managers.

Trends in the CITIZEN Group's Water Withdrawal

The CITIZEN Group Environmental Goals 2030 set the aggressive target of reducing water use and water withdrawal by 35% compared to 2018. In FY 2020, our water withdrawal was 1,103,000 m3 in Japan and 671,000 m3 overseas for a total of 1,774,000 m3. As a result, our water withdrawal in FY 2020 met the target of a 5% (2,093,000 m3) reduction compared to FY 2018. Of this water withdrawal, 31% was sourced from groundwater, 44% from city water, and 25% from industrial water. Water-conservation efforts aiming to achieve a sustainable factory include facility renovations with consideration for environmental impacts in such areas as water use, and we will make further progress in reducing water withdrawal and use in FY 2020 and beyond. Efforts aiming to achieve a sustainable factory include water conservation, adoption of high-efficiency equipment, and cyclical water use, and we will make further progress in reducing water withdrawal and use in FY 2021 and beyond.

Trend of water withdrawal by source (thousand m3)
    FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Groundwater (recyclable) Japan 705 603 563 564 546
Third-party source (city water) Japan 480 482 472 443 399
Third-party source (Industrial water) Japan 232 238 240 231 158
Total (Japan)   1,418 1,323 1,274 1,238 1,103
Groundwater (recyclable) Outside Japan 3 3 10 4 2
Third-party source (city water) Outside Japan 480 470 522 503 389
Third-party source (Industrial water) Outside Japan 408 395 397 221 279
Total (outside Japan)   891 868 929 728 671
Total 2,309 2,191 2,203 1,966 1,774