Material Issue Water and effluents

Management and Promotion Method of Water and effluents

[Responsible Departments]

• Manufacturing Planning Center
• Business divisions

Coordinating office: Environment Committee (Secretariat: Safety and Environmental Promotion Department of Manufacturing Planning Center)

[Policy/Point of view]

The Group sets forth the preservation of the global environment in the “Group Code of Conduct” and the “Environmental Basic Policy” and strives to save resources and energy and reduce wastes and hazardous substances in each stage of technology development, design, procurement, production, sale, and use of products and services. We recognize the importance of water resource that is essential for our production activities and launched initiatives to confirm and reduce water risk.
As for the volume of water consumption, each business manages the total water withdrawal by source.
As for effluents, each business facility checks the volume and quality of water discharge to comply with the standards set by relevant local governments.

[Targets/Vision]

• Manage the total water withdrawal per water source by actual value
• Maintain the quality of water discharge below the standards set by local governments

[Measures]

• Manage the total water withdrawal per water source at each business facility
• Check the volume and quality of water discharge at each business facility

Launched an initiative to understand and reduce water risk

Although none of the Group’s production bases is currently located in areas with water restriction, we recognize the importance of water resource that is essential for our production activities and launched an initiative to understand and reduce water risk in fiscal 2018. As a result, in fiscal 2022, we were able to reduce both water withdrawal and discharge in Japan.
In terms of management by water source, we plan to establish the management method and launch it by the end of fiscal 2023. We will strive to further reduce water risk and conserve water resources by identifying water discharge channels in our production bases.

●Total water withdrawal (Fiscal 2020 to 2022)

	(FY)	Bando Chemical Industries	Domestic consolidated production subsidiaries	Overseas consolidated production subsidiaries	Bando Chemical Industries and consolidated production subsidiaries
Total water withdrawal (m3/year)	2020	788,816	6,396	378,964	1,174,176
	2021	758,788	5,852	424,494	1,189,134
	2022	611,497	5,509	430,100	1,047,106
Total water discharge （m3/year)	2020	199,412	1,279＊	83,169＊	283,861
	2021	195,654	1,165	87,712	284,531
	2022	171,456	1,102	87,916	260,474

* The calculation method of water discharge was changed in fiscal 2020.

Compliance with our voluntary standard for quality of discharged water

The quality of water discharge of production base is managed using the voluntary standard set stricter than those set by relevant local governments.
The Group’s production bases have in place a system to stop discharging water and collect it when abnormality is found in water quality in daily operations, but recently, heavy rains that cause massive damages are becoming more frequent, raising the risk of leakage or effluence of contaminants, wastes, and liquid raw materials. Nankai Plant installed oil film detectors in drainage and cooling water tank as a measure to early prevent effluence of contaminated water and prevent damage in the environment and community surrounding the Plant. Ashikaga Plant has installed water quality monitoring equipment to early detect and respond to abnormalities as it discharges water used in its production process and cafeteria, etc. to river via a purifying chamber. Kakogawa Plant raised oil weir of oil-water separation paths, and Wakayama Plant implemented measures to prevent rainwater ingress into and waste oil leaks at the industrial waste storage.

Material Issue Emission

Management and Promotion Method of Emission

[Responsible Departments]

• Manufacturing Planning Center
• Business divisions

Coordinating office: Environment Committee (Secretariat: Safety and Environmental Promotion Department of Manufacturing Planning Center)

[Policy/Point of view]

The Group sets forth the preservation of the global environment in the “Group Code of Conduct” and the “Environmental Basic Policy” and strives to save resources and energy and reduce wastes and hazardous substances in each stage of technology development, design, procurement, production, sale, and use of products and services.
Recognizing the seriousness of the escalation of climate change issues, the Company aims at reducing CO₂ emissions which is one of the aggravating factors for climate change risks, and has implemented various initiatives such as shifting to different fuels, switching to high-efficiency equipment and LED lighting, and installing high-efficiency boilers at business facilities, in addition to aggressively adopting modal shifts, joint deliveries, and milk run logistics. We are also proactively adopting new methods such as ESCO service and Joint Crediting Mechanism.
The Company has set a long-term target for the reduction of CO₂ emissions, with the actual results managed by each business facility.

[Target]

Bando Chemical Industries’ target for fiscal 2030: 33,915t-CO2t (reduction by 38% from the fiscal 2013 level)
Bando Group target for fiscal 2050:	Carbon Neutrality

[Measures]

• 1. Enhance energy management technology through trainings for energy management engineers
• 2. Use external energy-saving diagnosis and energy-saving patrol to check the effects and consider improvements
• 3. Improve energy efficiency of facilities by fully considering energy-saving at the time of new installation or renewal

Initiatives for CO₂ emission reduction

To achieve “fiscal 2030 target” to reduce CO₂ emissions by 38% by fiscal 2030 compared to the fiscal 2013 level (54,703t-CO₂), we have switched to high-efficiency equipment including shifting to different fuels, upgrading to high-efficiency boilers, introducing LED lighting, and also actively introduced ESCO service and Joint Crediting Mechanism.
In fiscal 2022, we successfully reduced energy consumption compared to fiscal 2021, resulting in a decrease in CO₂ emissions.
From the perspective of global environmental conservation, we are considering calculating CO₂ emissions not only from our business activities (Scope 1 and 2) but also from the entire value chain (Scope 3) and plan to disclose emissions under the refined calculation method.
※Fiscal 2030 Target

Reduction of VOC emissions

Volatile organic compounds (VOC) are considered as major causal substances of photochemical oxidants and are subject to the voluntary reduction effort under the Clean Air Act.
We work to reduce VOC with enhancements to the processing equipment, and proper handling and storage of the compounds. We set our voluntary reduction targets at 55% reduction from the fiscal 2000 level, which was higher than the industry target of 50%, and achieved it in fiscal 2012. Since then, we have been reducing emissions at levels exceeding this target. In fiscal 2022, we achieved a 72.2% reduction compared with the fiscal 2000 level.

Management and Promotion Method of Waste

[Responsible Departments]

• Manufacturing Planning Center
• Business divisions

Coordinating office: Environment Committee (Secretariat: Safety and Environmental Promotion Department of Manufacturing Planning Center)

[Policy/Point of view]

The Group sets forth the preservation of the global environment in the “Group Code of Conduct” and the “Environmental Basic Policy” and strives to save resources and energy and reduce wastes and hazardous substances in each stage of technology development, design, procurement, production, sale, and use of products and services.
For waste, each business facility checks the waste generation to comply with the standards set by relevant local governments.

[Visions]

• Achieve zero emissions
• Waste plastic: 1% reduction from fiscal 2022 results (total volume)

[Measures]

• Check the waste generation at each business facility

Achieve zero emissions

We have already achieved zero emissions* through thorough waste separation. We will continue to work on reducing waste generation for the efficient use of resources.

*Definition of zero emissions: Final landfill disposal rate of less than 1% (final landfill disposal rate = final landfill disposal volume/volume of waste generation)

Compliance with the Plastic Resource Circulation Act

The Plastic Resource Circulation Act came into effect in April 2022. In fiscal 2022, the volume of our plastic industrial waste (non-consolidated) was 1,030 tons. In fiscal 2023, we aim to reduce plastic industrial waste by 1% compared to fiscal 2022 and will work on in-house recycling of plastic industrial waste and the design and manufacturing of environmentally friendly products.

Emissions and transfer volumes of PRTR substances

We designated substances specified in the PRTR* (Pollutant Release and Transfer Register) as controlled substances and are striving to reduce their use by shifting to alternatives while maintaining proper management.

*Pollutant Release and Transfer Register (PRTR) system: A system whereby business operators are required to identify the amount of chemical substances potentially hazardous to human health and ecosystems emitted from the plants into the environment (air, water, and soil) and the amount transferred out of the plants as part of the wastes and report them to the government, which then aggregates and publishes the emitted/transferred amounts based on the submitted data and estimates.
The fiscal 2019 volumes in the chart below was retrospectively revised from the actual emitted/transferred volumes disclosed in CSR Report 2020 to those submitted to the government.

Management and Promotion Method of Safety and disaster readiness

[Responsible Departments]

• Each business facility

Coordinating office: Company-Wide Health and Safety Committee (Secretariat: Safety and Environmental Promotion Department of Manufacturing Planning Center)

[Policy/Point of view]

As the Company is engaged in manufacturing while interacting with society and local communities, we established the “Group Code of Conduct” and the “Health and Safety Policy” to set forth the compliance with the environmental laws and regulations and agreements with the local governments and industries, and are striving to prevent pollution in society and local communities with the target of achieving “No claims, accidents or emergencies.”

[Targets/Vision]

Claims, accidents or emergencies: None　

[Measures]

• Maintain the latest version of the environmental laws and regulations and agreements with local communities that are applicable to business facilities in accordance with the “Environmental Guidelines”
• Evaluate each business facility’s status of compliance with the applicable environmental laws and regulations, etc. in accordance with the compliance assessment of the “Environmental Manual”
• Provide education to employees using textbooks incorporating past incidents
• Participate in security and disaster readiness activities in local communities/Hold meetings for local residents near business facilities

To prevent claims, accidents or emergencies

The Group is engaged in manufacturing while interacting with society and community and aims at “No claims, accidents or emergencies” by enhancing initiatives to prevent them.
In fiscal 2022, one accident (sewage leakage at the Head Office) occurred, so we pursued the cause, developed measures and implemented them across the Group to prevent recurrence.
In fiscal 2022, we continued to refrain from holding briefing sessions and monitor meetings for local residents, which we hold annually, due to COVID-19. Instead, we conducted a survey of local residents at Nankai Plant and Kakogawa Plant and distributed environment monitoring documents that summarized measurement results, etc. of the environmental data. In addition, we reflected the latest environmental laws and regulations as well as agreements with local communities in the “Environmental Guidelines” and “Environmental Manual” and also provided education using past incidents. We will continue to aim at “No claims, accidents or emergencies.”

Security and disaster readiness activities

We also focus on security and disaster readiness activities in preparation for emergencies to ensure business continuity and safe operation. Specifically, the Bando Group suffered massive damages to its Head Office and production bases from the Great Hanshin-Awaji Earthquake, and therefore we continue to work on creating disaster-resistant working places.

• Earthquake countermeasures and emergency drills, etc.
  In addition to antiseismic reinforcement of the buildings at domestic offices, we conduct Shakeout drills (actions to protect oneself from earthquakes) using the sound of the earthquake early warning. Usually, group offices would conduct joint drills with local fire stations or brigades, and Nankai Plant would cooperate with emergency drills in which local residents participate every year. The Head Office holds “Memorial walk for earthquake disaster” every year on the anniversary day of the Great Hanshin-Awaji Earthquake, with participants walking for about 50 minutes from the Head Office to Sannomiya to check the evacuation route at the time of disaster.
  In fiscal 2022, however, most of these events were cancelled due to the spread of COVID-19, and we only conducted fire drills internally.