• Policy
• Structure
• Targets and Achievements
• Initiatives
• Water Reduction Initiatives
• Wastewater Purification Initiatives
• Effective Wastewater Use Initiatives
• Water Risk Initiatives
• Engaging with Water-Related Stakeholders
• Data

Policy

The Oji Group strives to reduce water intake by improving its operations and water recycling and identifying regions where water-related risks are high.
We will continue to implement Group-wide initiatives to effectively utilize water resources and reduce water intake. We also communicate to our suppliers our ideas on water resource management as outlined in the Oji Group Sustainability Action Guidelines for Supply Chains, and work to reduce water consumption throughout the entire supply chain.

Structure

The President and Group CEO is responsible for water management strategy and performance.
The Sustainability Committee is chaired by the President and CEO and its members include Oji Holdings directors and all company presidents. It is responsible for formulating countermeasure policies and action plans, monitoring progress, and evaluating the achievement of these measures.
We also incorporate water intake and intensity into our annual plans and regularly manage them.
The Secretariat of the Sustainability Committee collects and receives performance data on reduction targets from each company on a quarterly basis, reviews and evaluates the process of monitoring water usage, and reports to the board of directors at the Sustainability Committee once a year, implementing continuous improvements.

Targets and Achievements

Target - Reduce water intake intensity -

• Reduce water intake intensity 6% or more compared with FY2018

Continuous improvement towards the FY2030 targets

In FY2023, the Oji Group's total water intake was 695 million m3, its total wastewater discharge was 672 million m3, and its water consumption was 23 million m3. The Oji Paper Group is working to effectively utilize water resources with the goal of reducing the water intake intensity of the Group as a whole in FY2030 by 6% or more, compared with FY2018. Oji Paper, Oji Materia, Oji F-tex and Oji Nepia, whose water intake is approximately 80% of the Group’s total water intake, have formulated specific reduction plans for 2030 and are working on them.

• * This table can be viewed by scrolling horizontally.

To diversify risks, the water used at plants is not just surface water from rivers and other sources, but also groundwater and water from third-party water sources (industrial water, etc.).

• * This table can be viewed by scrolling horizontally.

Initiatives

Water Reduction Initiatives

All of the Group's business sites have formulated water management plans to control water intake, wastewater discharge, and the quality and temperature of water when discharged. In addition, the Group is taking steps, including efforts to reduce the water it uses, to effectively use water resources and reduce environmental impact. In addition, the Corporate Sustainability Department collects environmental data (water intake, wastewater discharge, etc.) and examples of water conservation measures from all business sites every year, and horizontally disseminates information about effective measures to each business site.
Paper and paperboard mills use a large amount of water throughout all of their production processes, including pulp evaporation, washing, bleaching, conditioning and papermaking. However, the water used in each process is collected, treated, purified and reused (recycled). In addition, water used in the final stage of the papermaking process, drying (steam drying), is also recovered and reused.

The World Resources Institute's (WRI) AQUEDUCT water risk assessment tool uses the Water Risk Baseline Water Stress indicator to rate the degree of potential conflict with other users of water on a five-point scale (extremely high, high, medium to high, low to medium, low or no data). The higher the rating, the more competition and the higher the risk.

Oji Holdings Group companies refer to the above AQUEDUCT assessment, implement water-saving measures at each business site, and mitigate the risk of water resource depletion.
The following are representative examples of these activities.

IPI (Italy): Extremely High

IPI joined the group in FY2023. Immediately after joining the group, IPI upgraded its boiler cooling tower and installed RO membrane treatment equipment. This enabled IPI to reduce the amount of chloride ions in the wastewater generated during the process of softening the hard water used in production, and at the same time reduce its water consumption.

Jiangsu Oji Paper (China): Medium to High

Jiangsu Oji Paper has significantly reduced water consumption by implementing the best available technology recommended by the European Commission for environmental protection purposes in its paper and pulp production activities.

Oji Materia Osaka Mill (Japan): Low to Medium

Oji Materia Osaka Mill has adopted and implemented the following techniques, which are among the best available techniques recommended by the European Commission. This has resulted in significant water reduction effects, making it possible to reduce water intensity (m3/ton), which represents the amount of water used (m3) relative to the amount of paperboard produced (in tons), to single digits. We are proud to be industry leaders in terms of water usage efficiency.

6.3.2　  Separation of sealing and cooling water from contaminated process water and water reuse
6.3.3　  Optimal water management, water loop separation and arrangement, counter-current flows and internal water clarification
6.3.5　  Removal of calcium from process waters
6.3.6　  Installation of an equalization basin and primary treatment of waste water
6.3.11　Clarification of white water (water containing fine fibers)
6.3.12　Prevention and elimination of biofilms by using methods that minimize emissions of biocides
6.3.13　Effective reject and sludge handling and processing (dewatering) on site

For more technical information, see the Best Available Techniques (BAT) Reference Document for the Production of Pulp, Paper and Board (europa.eu)

CENIBRA (Brazil): Low

CENIBRA is recovering cooling water to more effectively use it. Additionally, CENIBRA will invest in equipment to increase heat recovery efficiency in the future as part of the plant modernization project. By optimizing the use of steam, it is expected that water consumption will be further reduced.

Oji Fibre Solutions (New Zealand): Low

The installation of new water treatment facilities that enable previously unused wastewater generated during various manufacturing processes to be recycled and other measures.

Wastewater Purification Initiatives

Oji Paper and Oji Materia (Japan)

Oji Paper and Oji Materia mills are working to purify wastewater by implementing the advanced treatment of wastewater recommended in the Best Available Technologies section above (BAT 7.3.12, Tertiary waste water treatment) and the setting of voluntary control values that are even stricter than in effluent regulations.

IPI (Italy)

As noted above, IPI changed from ion exchange resins to RO membrane treatment equipment for the softening of hard water for use in production processes. This change has resulted in the purification of wastewater by reducing the generation of chloride ions in the wastewater.

The total amount of the expenses and investments necessary for wastewater treatment and other water-related activities in FY2023 were 7,834 million yen and 797 million yen, respectively.
Regarding wastewater treatment, the Group has begun to develop advanced wastewater treatment technology utilizing remote monitoring and AI, which are expected to contribute to the improvement and stabilization of the quality of treated water and the optimization of operating costs and operational management in the future.

Effective Wastewater Use Initiatives

Jiangsu Oji Paper (China)

Wastewater generated by Jiangsu Oji Paper in its manufacturing processes is treated and purified until it meets the regulatory standards for wastewater, and then it is transferred to Nantong Nengda Water Co., Ltd. in the Nantong Economic and Technological Development Area. After undergoing various treatment processes, this water is all used as recycled water within the Economic and Technological Development Area.
Recycled water is water of a quality between tap water and sewage that is used for industrial purposes.

Water Risk Initiatives

Water Risk Assessment

The depletion of water resources and damage from floods caused by climate change in recent years pose significant risks not only to the continuity of businesses but also to industries and people’s health in the communities where businesses operate. To better understand the water risks involved in its business operations, the Oji Group references assessments conducted by the World Resources Institute (WRI), a global environmental research organization.
The water risks at all 308 business sites were analyzed using the WRI’s AQUEDUCT water risk assessment tool. The results indicated that 21 sites were located in areas with high water risk (baseline water stress: high or extremely high).

Fact-finding surveys of these 21 high-risk business sites were conducted to investigate the water risks and their financial impact.
The results of these investigations indicated these high-risk sites accounted for less than 1% of the Group’s total water intake, less than 2% of its total water consumption and 2% of its total production. To analyze the potential financial impact of the water risks, we also considered scenarios in which these facilities were forced to suspend operations due to water shortages. However, as the sales and assets of these sites account for only about 4% of the total sales and assets of the Group, the financial impact was consequently estimated to be low.

Water Risk Assessment^*1

• * This table can be viewed by scrolling horizontally.

• *1 WRI’s AQUEDUCT (4.0) Water Risk Atlas - Baseline Water Stress (5-level evaluation): Indicates the degree of potential competition with other users of water, with higher values indicating more intense competition and higher risk.
  Learn more about Aqueduct
• *2 Excludes main offices, sales offices, and other business sites not involved in product manufacturing.
• *3Water consumption is the amount of water intake minus the amount of water discharged.
• *4Subtotals of sales and assets of companies that have business sites located in areas with high water risk (High and Extremely High), and the ratio of each against the total sales and assets of the entire Group.
• *5Total sales of 1,696.3 billion yen and total assets of 2,442.5 billion yen are for the entire Group, including companies excluded from the water risk assessment.

Additionally, to mitigate water-related risk, we are currently investing approximately 30 million yen per year in the development of water treatment technology, which is a research theme. In the future, this may result in the mitigation of water risks and the development of new water-related businesses, contributing to the stability and growth of the Group as a whole.

Water Risk Fact-finding Survey

For those business sites that have been evaluated as high risk, we conduct annual interviews to ascertain the impact of water shortages and flooding on operations and the frequency of their occurrence, and to learn about examples of the countermeasures being implemented.
The results of the interviews conducted in fiscal 2023 indicated that there were no issues with production or operations identified at any business site, and no potential water risks were observed.
However, business sites reported proactive environmental protection actions, such as the implementation of voluntary initiatives to reduce water usage, engagement with stakeholders to reduce water consumption, and participating in water resource conservation activities led by public institutions.

FY2023 High-Risk Business Sites Hearing Results Water Risk Assessment

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The 21 business sites either treat their wastewater or have contracts enabling them to use wastewater treatment facilities owned by their industrial parks. They also monitor the amount of wastewater discharged and substances of concern in the wastewater, and they regularly submit reports to local governments and water resource management agencies. Furthermore, the Oji Group conducts environmental audits of 21 business sites, and there have been no violations of laws or serious accidents. For more information, please refer to Environmental Management：Initiatives.

As a result, we confirmed that all of the business sites that were initially assessed as high risk are currently considered to be low risk.

Engaging with Water-Related Stakeholders

Water resources, along with forests and biodiversity, are resources shared by the community, and the sustainable use of resources is ideal. In particular, production sites actively engage in dialogue with local stakeholders regarding water use, water conservation and water resource conservation concerning water resources which are essential for production.

CENIBRA (Brazil)

CENIBRA, Brazil: As a representative of the private sector, CENIBRA participates in local river basin committees and forest dialogue councils, contributing to the development of the forest sector and strategies for the conservation of water resources, natural resources and biodiversity.
CENIBRA's eucalyptus plantations and pulp production use water from the region’s Doce River Basin. In recent years, there has been less rainfall than usual, and the risk of a water shortage has been a concern for the entire region. To address this issue, CENIBRA has regularly monitored water at each water point to identify the sub-basins of greatest influence. In collaboration with government authorities and local residents, CENIBRA is focusing on water conservation activities for these sub-basins to improve their practices regarding access to water and sanitation. Specifically, CENIBRA is working on the following initiatives:

Building water reservoirs in the forest

Subsoiling

Water Source Protection Project

KANZAN (Germany)

KANZAN (One of the initiatives at the water risk site), Germany: WVER is in charge of water resources management and wastewater treatment in Düren, Germany, where KANZAN is located. The association is a public organization that is managed by the residents and companies in the area that participate in the association. In addition to providing a stable water supply and wastewater treatment in the area, the association's role is to conserve water resources, and KANZAN attends meetings and participates in its activities as a member.

Oji Paper (Japan)

The Oji Paper Tomioka Mill and Yonago Mill participate in the Naka River South Bank Land Improvement District Water Use Association, etc. and the Hino River Basin Water Use Council, respectively. They are working to reduce water intake in accordance with dam storage rates to prioritize the local agricultural use of water during summer water shortages.

Oji F-Tex (Japan)

The Oji F-Tex Shibakawa Mill has signed a memorandum of understanding regarding water use with the local fisheries cooperative and cooperates in the protection of the local environment and aquatic life.

Data

• ESG Data 13. Water resources