Water Resources Conservation
Policy and Basic Concept
ITOCHU is aware that the sustainability of water resources is indispensable for business continuity in the various businesses we are developing around the world, including those in water stressed regions. Item 5. “Conservation and Effective Use of Water Resources” of our Environmental Policy states that “We shall reduce water consumption through efficient water use and recycling, as well as take necessary measures to appropriately treat effluents.” To ensure the sustainable use of water, we are committed to raising awareness of water sustainability in our corporate culture and integrating the concern into our business decision making process. In existing businesses, we will conduct a comprehensive assessment of water consumption to improve our water efficiency and reduce water consumption.
Given these global circumstances, ITOCHU Corporation has identified its water-related business as a material area. As such, we are committed to enhancing our global capability regarding our seawater desalination business and our water supply and sewerage concession businesses, which we have been engaging in since 2014. We believe that these initiatives will allow us to contribute to solving water stress and shortage issues around the world.
Targets and Action Plan
ITOCHU sets numerical targets for the reduction of water consumption.
ITOCHU develops water and hygiene infrastructure, and appropriately treats and effectively utilizes water and waste. Through this, our water resource related business contributes to improving the hygiene environment, developing economic activities and conserving the global environment. We are promoting the appropriate use and treatment of water, and the effective utilization of resources through expansion of our water and environmental business. In this way, we are working to reduce our environmental impact.
In Tokyo Headquarters building, we are implementing resource saving measures to recycle water through the creation of reclaimed water. This allows us to improve our water consumption efficiency in the office. The targets and indicators we track to manage our performance are noted in the table below.
Qualitative Targets
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| Item | Boundary | Target | FYE 2024 Results and Evaluation |
| Risk Assessment for Investment and Financing Projects | ITOCHU Corporation |
Conduct a preliminary risk assessment using the ESG Checklist for Investments, which incorporates a dedicated section to water risks. |
Properly implemented |
| On-Site Investigation for Group Companies | ITOCHU Group |
Select Group companies involved in businesses where water use is a material risk and conduct on-site investigation on the status of water management. |
Held conference with Group companies in areas where water resources are particularly important. |
| Compliance with Laws and Regulations | ITOCHU Group |
Continued awareness and response to domestic and foreign laws and regulations related to water resources (water withdrawal / discharge) |
There were no serious legal violations related to water withdrawal and discharge. |
| Implementation of Water Management Plans | ITOCHU Group |
Establish a water management plan to control the amount of water withdrawal, wastewater discharge, the amount of water recycled, and the water quality and temperature at the time of drainage, as well as to make effective use of water resources and reduce environmental impact. |
Of the 608 operating companies of the ITOCHU Group, 104 companies, or 17%, have formulated water management plans. |
| Sustainability Surveys | Value Chains |
Conduct sustainability surveys in a questionnaire format to check our important suppliers’ status of water withdrawal, water conservation, and drainage initiatives. Do further investigation for suppliers responding with concerns. |
Based on results of the questionnaire, we conducted further investigation for 5 cases. Requests for corrective actions due to concerns were 0 case. |
Targets in Water Stressed Regions
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| Item | Boundary | Target | FYE 2024 Results and Evaluation | |
| Initiatives in Water Stressed Regions | Risk Assessment for Investment and Financing Projects | ITOCHU Corporation |
Conduct a preliminary risk assessment using the ESG Checklist for Investments, which incorporates a dedicated section to water risks. |
Properly implemented |
| On Site Investigation for Group Companies | ITOCHU Group |
Select Group companies operating in water stressed regions and conduct on-site investigation on the status of water management. |
Held conference with Group companies in areas where water resources are particularly important. |
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Quantitative Targets
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| Category | Boundary | Annual Target | FYE 2024 Results | Target | ||
| Period | Contents | |||||
| ITOCHU Corporation | Water Withdrawal (Clean Water) |
Tokyo Headquarters |
Total Volume Reduction Target 1%/Year |
14.8% Reduction Compared to FYE 2019 |
March 2025 |
6% Reduction Compared to FYE 2019 |
| Water Stressed Regions* | Water Withdrawal (Clean Water) |
Water Stressed Regions |
Reduction Target 1.5%/Year |
16.2% Increase Compared to FYE 2020 |
March 2025 |
9% Reduction Compared to FYE 2020 |
- Quantitative targets for water stressed regions cover operations located in areas where the WRI Aqueduct Baseline Water Stress map identifies as “Extremely High Risk”.
Action Plan
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| Materiality | SDGs Targets | Impact Classification | Issues to Address | Business Area | Commitment | Specific Approach | Performance Indicators | Degree of Progress |
| Machinery Company | ||||||||
| Address Climate Change (Contribute to a Decarbonized Society) |   |
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Improving water and sanitation infrastructures | Water and environmental projects | We will contribute to improve the sanitary conditions, the development of economic activities, and the protection of the global environment through the appropriate treatment and effective use of water and waste. | Expand water and environment projects to promote the appropriate use and treatment of water and the effective utilization of resources, and reduce the burden on the environment. | Expand the investment portfolio in the water and environment field which contribute to social demands for the environment and the promotion of a circular economy. |
Water Field
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Structures and Systems
Governance
Our governance structure and systems for managing environmental and social risks related to water resources conservation are as follows.
Refer to: Governance
Evaluation of Water Resource Conservation in New Business Investment Projects
For business investment projects that ITOCHU undertakes, the impact of the project on society and environment is evaluated in advance using the ESG Checklist for Investments, a checklist that must be submitted when entering into new business investment projects. For example, it includes assessing the amount of water used and discharged, and checking the level of water stress at business sites. For projects that require expert knowledge, we make request to external expert to conduct investigations (environmental due diligence, etc.) in advance. The project is then only undertaken upon confirming that there are no problems in the results of those investigations.
Assessment of Water Resource Conservation at ITOCHU Group
We consider ensuring stable procurement and supply to be a material sustainability issue. We are committed to improving the efficiency of our water consumption and taking necessary measures depending on the abundance of water supply in certain regions. By committing to giving these due considerations, we aim to contribute to the global water crisis.
Monitoring Changes in Water Withdrawal and Wastewater Discharge over Time
ITOCHU collects water withdrawal and wastewater discharge data from all of our consolidated subsidiaries (approximately 600) in its annual collection of environmental data and monitors changes over time. We have established a system for Group companies to report causes of differences from the previous fiscal year to encourage appropriate water use.
Understanding Water Risks at Manufacturing Bases
ITOCHU uses the WRI Aqueduct tool developed by the World Resources Institute (WRI) to identify areas with high water stress levels at manufacturing bases affiliated with our Group. With this, we have quantified the water stress levels at all our manufacturing bases in Japan and overseas and have identified areas with a high level of water stress. We take necessary measures based on changes in water availability, water usage, and the risk of stricter regulations, etc.
| Overall Water Risk | Number of Sites |
| Low risk (<10%) | 78 |
| Low to medium risk (10-20%) | 127 |
| Medium to high risk (20-40%) | 90 |
| High risk (40-80%) | 8 |
| Extremely high risk (>80%) | 7 |
| Total | 310 |
On-site Investigations at Our Group Companies
We have been conducting annual on-site investigations for Group companies having relatively high environmental impacts since 2001 to strengthen our environmental risk management. Throughout the assessment, we engage with the senior management team to assess the company’s water efficiency performance (water withdrawal and discharge) at facilities such as factories and warehouses as well as the company’s compliance with environmental laws and regulations.
Assessment of Water Risks in the Value Chain
Assessment of Sustainability Risk in Products We Handle
When handling a new product, ITOCHU conducts sustainability impact assessment on all our products to evaluate their environmental and social risks, compliance with environment-related laws and regulations, and stakeholder relations, using LCA analysis methods from the procurement of raw materials to the manufacturing, use, and disposal stages of the product. In cases significant water-related risks are found in the value chain, we formulate various regulations and procedure manuals for the applicable product being subject to priority management, and specific education programs.
Sustainability Surveys for Suppliers
To realize a sustainable procurement and understand the actual conditions of our suppliers, each company and applicable Group company selects important suppliers based on certain guidelines (e.g., high risk countries, products handled and monetary value handled). The sales representatives of those companies and representatives from overseas subsidiaries and operating companies then visit those suppliers to conduct interviews. They also conduct sustainability surveys in a questionnaire format to check our important suppliers’ status of water withdrawal, water conservation, and drainage initiatives. Continuous improvement is made by requesting suppliers to make corrective actions when necessary.
Initiatives for Effective Use of Water Resources
Business Activity
Water Management Plan and Effective Use of Water Resources at the Tokyo Headquarters Building
In order to make effective use of water resources, the Tokyo Headquarters building adopted a water management plan in the design stage of the building, and since its completion in 1980, the building has installed and maintained a reclaimed water manufacturing facility that uses kitchen waste water, rainwater, spring water, and wash basin as well as miscellaneous waste water from kitchenettes and other sources as raw water for flushing toilets.
We strives to make effective use of water resources by implementing water-saving measures to control the amount of clean water used. For example, since the amount of water available varies every year depending on the amount of rainfall, tap water usage tends to increase when rainfall is low. For this reason, continuous improvements are being made to conserve tap water by installing new washbasin, washbasin shower water savers and automatic toilet flushing water savers.
Effective Use of Water Resources by ITOCHU Group
ITOCHU recognizes that conservation of water resources is a global issue along with climate change and other issues. As one of the important issues of the Group’s environmental policy, we make efforts to reduce water consumption through efficient water use and recycling, as well as take necessary measure to appropriately treat effluents in our domestic and overseas businesses. For example, ITOCHU’s Group company PRIMA MEAT PACKERS, LTD. and its group companies has listed “Reduction of factory water consumption (well water and supplied water)” as one of the priority issues for its ISO14001 certified sites and is carrying out reduction activities and progress management in order to reduce food production water intensity (water consumption (m3) / ton of food produced). Actual values are 15.3 m3/ton in FYE 2021, 14.8 m3/ton in FYE 2022, and 14.8 m3/ton in FYE 2023.
Refer to: ESG Data Book 2021
, Key environmental objectives and performance (FYE 2022), Key environmental objectives and performance (FYE 2023)
Water Related Business
ITOCHU considers our water related business to be a priority field. We are deploying seawater desalination business and water utility on a global basis. This is to contribute to solving water problems around the world.
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| Business | Content of Initiatives |
| Seawater desalination business | We have invested in the seawater desalination project in Victoria, Australia. This is the project that has been providing the reliable water supply for Melbourne since 2012, and this plant is capable to meet approximately 30% of the water demand of Melbourne, Victoria. |
We have invested as the largest shareholder in the seawater desalination project in Barka, Northern Oman, with a daily production volume at 281,000 m3 in collaboration with the Oman Power and Water Procurement Company (OPWP), a state-owned company of the Sultanate of Oman. |
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| Seawater desalination plant, and osmosis membrane manufacturing and sales | We started delivering multiple seawater desalination plants to Saudi Arabia in the 1970s. We established a joint venture company called the Arabian Japanese Membrane Company, LLC with ACWA Holding of Saudi Arabia and Toyobo in August 2010. This company manufactures and sells reverse osmosis membrane elements for seawater desalination. |
Examples of Initiatives
Stable Supply of Drinking Water Connecting to Life
Largest Seawater Desalination Project in Oman
The water demand in Oman is expected to grow at approximate annual rate of 6% in coming years. The shortage of drinking water has been recognized as an issue to be resolved in the context of population increase as well as urbanization. The Barka Desalination Company in which we have a stake of as its largest shareholder entered into a seawater desalination agreement for a daily production volume of 281,000 m3 in Barka in the northern part of Oman for the stable supply of water in that country in March 2016. This project is a Public-Private Partnership with the Oman government to provide domestic water to the Barka region, which is a severely water-stressed region. We have constructed reverse osmosis membrane (RO membrane) seawater desalination plant and surrounding facilities. These will be operated for 20 years. The plant started commercial operation in June 2018. This is the largest seawater desalination project in Oman with total project cost of approximately 300 million dollars. Besides, we realized listing on the Muscat Stock Exchange in February 2022.
The water demand is arising because of the worldwide population growth, economic development and global warming. In response to this, we consider the water business to be a priority field. Accordingly, we are proactively expanding our activities into seawater desalination, water supply and drainage businesses. We will continue to promote business that contributes to the effective utilization of water resources in regions around the world in the future.
Environmental Costs Related to Water
Among the environmental conservation costs (FYE 2024) disclosed in the environmental accounting, associated with water are as follows:
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| Cost for water pollution prevention, wastewater treatment cost, grey water production cost, monitoring measurement cost and management cost | 10,275 thousand yen |
| Research and development expenses for water risk aversion (donation to Division of Climate System Research, Atmosphere and Ocean Research Institute, the University of Tokyo) | 500 thousand yen |
Collaboration with Outside Initiatives
Japan Business Federation (KEIDANREN) Working Group on Global Environment Strategy under the Committee on Environment
We are participating in the Working Group on Global Environment Strategy under the Committee on Environment, an environment and energy related committee of the Japan Business Federation (Keidanren). We are working to realize an environmental policy compatible with the economy (e.g., through promotion of voluntary action plans, and measures for global warming, waste and recycling and environmental risks including water management).
The Environment Working Group of the Japan Foreign Trade Council
We are participating in the Environment Working Group of the Japan Foreign Trade Council. We are striving to build a decarbonized society, construct a circulating society, and to support environmental related laws and regulations with other trading companies.
Participation in the CDP (Water Security)
Refer to: Participation in Initiatives