Response to Water Risk

Concept of Utilization of Water Resources

Concept of Utilization of Water Resources

The Idemitsu Group has in place an overarching risk management structure to address risks arising from changes in the business environment, natural disaster risks, risks attributable to operational accidents, climate change-related risks, and environmental regulatory risks. Water-related risks, which fall within these risk categories, are thus managed under the aforementioned structure.

Specifically, in line with the Environmental Protection Policy, voluntary targets regarding wastewater treatment have been set and incorporated into the Group’s Environmental Management System operations from the perspective of preventing pollution, effectively utilizing resources, and preserving biodiversity. These targets are even more severe than standards stipulated by national and local governments.

With particular focus on the effective utilization of water resources, we work to assess our status of water use on a global basis. In reference to the "Aqueduct" data published by the World Resources Institute (WRI), we have also confirmed whether our business sites operate in regions with water stress.

Although our six domestic refineries and complexes are not located in regions with high water stress, the volume of water intake by these business sites accounts for more than 95% of the Idemitsu Group’s overall water intake volume. As most of our water utilization volume is thus attributable to our domestic business sites, our focus regarding water consumption is on reducing usage via the recycling of water resources with the objective of promoting effective resource utilization in the course of domestic operations.

In addition, we have made it a rule to limit our water intake upon the request of relevant local government in case of falling below the dam water storage standard due to a temporary decrease in precipitation. In this way, we help eliminate water depletion risk. On the other hand, Japan's landscape is steep, and the rains poured into rivers suddenly flow through to rivers, which increases the risk of flooding due to increased rainfall. In recent years, the impact of weather has increased, and flood damage has become more frequent during typhoon passes.

As described above, in Japan, where our business is headquartered, we have a variety of water-related issues, and the risk of flooding is high. We anticipate that future damage will expand due to climate change, so we are moving forward with the strengthening of related infrastructure facilities. By implementing these measures and curbing sustained water stress, we are able to use stable water resources.

We also operate in countries and regions where water resources are not necessarily abundant other than Japan. The problem of water resources in the world is becoming increasingly serious, and it is said that more than 2 billion humanity cannot obtain safe drinking water. Recognizing the current situation, we have begun efforts to look overseas. At present, although we do not operate in areas with high water stress, in order to maximize the effective use of precious resources such as water, we are promoting efforts to reduce the amount of water used in Japan, where our water utilization is highest.

Our main business base Water stress map
Figure
  • *As of July 2020 Source: WRI’s Aqueduct assessment
  • *Scope: Main Business operations undertaken by Idemitsu Kosan Co., Ltd. and its consolidated subsidiaries
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