Resource Circulation -Water-

Policy

Water is a finite resource, and the surrounding water environment varies depending on regional conditions. Therefore, it is essential to utilize water resources appropriately under proper management tailored to local circumstances, in collaboration with stakeholders.
The Oji Group uses external tools to assess water-related risks such as water scarcity at each business site and utilizes water resources in accordance with regional conditions. Through stakeholder engagement, the Group undertakes operational improvements to reduce water withdrawal and water usage, and actively pursues the circular use of water. 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 Representative Director of the Board, President and CEO of Oji Holdings Corporation, who is responsible for the Group's water management strategy and performance, chairs the Sustainability Committee. The committee comprises Directors, Audit & Supervisory Board Members and Corporate Officers of Oji Holdings (including the Presidents of all COMPANIES and female Outside Directors). It is tasked with formulating countermeasure policies and action plans, monitoring progress, and evaluating the achievement of these measures.
Water withdrawal volumes and intensity are incorporated into the annual plans and are regularly managed throughout the year.
The Corporate Sustainability Department of Oji Management Office, which serves as the secretariat of the Sustainability Committee, collects performance data on water withdrawal reduction targets from each company on a quarterly basis, monitors water usage, and evaluates progress toward the targets. Once a year, it reports to the directors at the Sustainability Committee and implements continuous improvements.

Water Risk Assessment

The depletion of water resources 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 325 business sites were analyzed using the WRI’s AQUEDUCT water risk assessment tool. The results indicated that 24 sites were located in areas with high water risk (baseline water stress: high or extremely high) (High water-risk areas).

The business sites located in high water-risk areas account for less than 1% of the Group’s total water withdrawal, less than 2% of total water consumption, and less than 3% of total production volume. In addition, both the sales revenue and assets of these sites represent approximately 5% of the Group’s total, and the financial impact is considered to be low.
On the other hand, the Oji Group recognizes the potential impact of water use on local communities in high water-risk areas. Through stakeholder engagement, the Group implements initiatives at these sites to reduce water withdrawal and improve the effective use of water resources, thereby helping to mitigate and prevent regional impact.

Water Risk Assessment(FY2024)*1

  • * This table can be viewed by scrolling horizontally.
  Number of business sites※2 Water withdrawal
(Thousands of m3)

Wastewater

(Thousands of m3)

Water consumption※3
(Thousands of m3)
Production volume
(Thousands of tons)
Sales Revenue
(JPY 100 million)
Assets
(JPY 100 million)

Low(<10%)or

No data

76 336,849 49.06% 317,706 48.77% 19,143 54.55% 6,527 43.3%        
Low to medium(10-20%) 126 213,060 31.03% 207,546 31.86% 5,514 15.71% 4,556 30.2%        
Medium to high(20-40%) 99 134,934 19.65% 124,984 19.17% 10,040 28.61% 3,598 23.9%        
High(40-80%) 5 1,436 0.21% 1,149 0.18% 287 0.82% 119 0.8% 1,057※4 5.7% 1,135※4 4.3%

Extremely high

(>80%)

19 267 0.04% 157 0.02% 110 0.31% 276 1.8%        
Total 325 686,547 100% 651,452 100% 35,095 100% 15,075 100% 18,493※5 100% 26,350※5 100%
  • *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 and total assets are for the entire Group.

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.

Targets and Achievements

Target - Reduce water withdrawal and consumption -

In the Environmental Action Program 2030, the Oji Group set a target to reduce water withdrawal intensity by 6% or more by FY2030, using FY2018 as the baseline year.
In the Environmental Action Program 2040, formulated in May 2025, the Group set a target to reduce total water withdrawal by 10% or more by FY2040, also using FY2018 as the baseline year.

Water use in high water-risk areas

In the Environmental Action Program 2040, formulated in May 2025, the Group also set a target of “Conducting stakeholder engagement at least once per year in high water-risk areas.” Under this target, the Group will engage with stakeholders at least annually at business sites located in high water-risk areas, while implementing initiatives to reduce water withdrawal and improve water efficiency.

  • * This table can be viewed by scrolling horizontally.
  FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Compared to FY2018

Water withdrawal

(million m3)

740 737 706 714 710 695 687 -
Water witdrawal intensity (1,000 m3/million yen) 0.48 0.49 0.52 0.49 0.42 0.41 0.37 -22.2%
Waste water (million m3) 708 701 672 676 673 672 651 -
Water consumption (million m3) 32 36 34 38 37 23 35 -

To mitigate risks associated with water withdrawal, 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.
  FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

Surface water (river, lake, etc.)

 (million m3)

488 483 463 466 453 443 436

Surface water (sea)

(million m3)

10 10 9 9 9 9 9
Groundwater (million m3) 137 133 128 127 131 128 129

Third party organization

(million m3)

106 111 106 112 117 115 112

Initiatives

Water Reduction and Effective Water Use Initiatives

The Oji Group is committed to the effective use of water resources across the entire Group. As part of this commitment, the Group has set the following targets:
In the Environmental Action Program 2030, a reduction of 6% or more in water withdrawal intensity by FY2030, using FY2018 as the baseline year.
In the Environmental Action Program 2040, formulated in May 2025, a reduction of 10% or more in total water withdrawal by FY2040, also using FY2018 as the baseline year.

All of the Group's business sites have formulated water management plans to control water withdrawal, wastewater discharge. In addition, the Group is taking steps, including efforts to reduce the water it uses, to effectively use water resources. 
Paper and paperboard mills use a large amount of water throughout all of their production processes, including pulp evaporation, washing, bleaching, conditioning and papermaking. The water used in each process is collected, treated, purified and reused (recycled) thereby contributing to water reduction and the effective use of water resources. In addition, water used in the final stage of the papermaking process, drying (steam drying), is also recovered and reused.

Examples of Water Recycling Initiatives

Continuous improvement towards the FY2030 targets

In FY2024, the Oji Group's total water withdrawal was 687 million m3, its total wastewater discharge was 651 million m3, and its water consumption was 35 million m3. The Oji Paper Group is working to effectively utilize water resources with the goal of reducing the water withdrawal intensity. 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.

Examples of Water Reduction Initiatives

Each company within the Oji Group refers to the Aqueduct Water Risk Atlas evaluation and implements initiatives to reduce water usage and mitigate water-related risks.
This section introduces examples of such initiatives along with the Aqueduct evaluation results for each site.

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.

Examples of Effective Water 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.

Effective use of wastewater at Jiangsu Oji Paper (China)

Initiatives in High Water-Risk Areas

Using the Aqueduct Water Risk Atlas developed by the World Resources Institute (WRI), the Group annually identifies business sites located in high water-risk areas (defined as regions with “Extremely High” or “High” Baseline Water Stress) and conducts interviews to assess their efforts in reducing water withdrawal and improving water efficiency.

In FY2023, the Group conducted a detailed survey of 21 business sites identified at the time as being located in high water-risk areas.

In FY2024, the Group confirmed the initiatives of IPI, a group company located in a high water-risk area, regarding water withdrawal reduction and water reuse and recycling.

To further advance water-related initiatives in high water-risk areas, the Oji Group established a new target in its Environmental Action Program 2040, formulated in May 2025:
“Conducting stakeholder engagement at least once per year in high water-risk areas.”
Under this target, the Group will continue to engage with stakeholders at least annually at business sites located in high water-risk areas, while implementing initiatives to reduce water withdrawal and improve water efficiency.

Reducing Regional Impact through Wastewater Treatment

Water used in business operations must be treated before being returned to the local environment. The Oji Group treats wastewater at its wastewater treatment plants and discharges it into surface water bodies such as rivers and lakes, or to third parties at levels below its own voluntary standard values, which are stricter than legal regulatory limits. For specific initiatives, please refer to the following link:

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

Since 2018, CENIBRA has built 100 reservoirs in its forests, storing a total of more than 1 million m3 of water, allowing excess water during the rainy season to slowly percolate into the soil, later into the river, maintaining the level of the water table in the basins. When determining the locations of these reservoirs, the residential-use water supply was considered, increasing harmony with the local community regarding the use of water resources.

Subsoiling

In recent years CENIBRA has developed subsoiling activities prior to planting seedlings to improve the regular infiltration of rainwater into the soil which is compacted by the activity of heavy machinery in its forests. Now CENIBRA is sharing this technique and its expertise with its neighbors, including log suppliers and farmers, who are contributing to the recovery of underground water retention in compacted pasture lands, as well as the prevention of erosion resulting in better water quality in the basin.

Click here for the video.

Water Source Protection Project

Within the scope of the Spring Protection Project, CENIBRA has played a crucial role in the preservation of springs located on third-party lands, especially those used for livestock and related activities. These areas, recognized as Permanent Preservation Areas under the Brazilian Forest Code, require landowners to ensure the preservation of native vegetation within them. However, many rural producers in the region were unaware of proper protection methods or faced economic constraints, resulting in inadequate conservation practices.
In this context, CENIBRA took the initiative to identify the basin of a Rio Doce tributary as a priority area for water source protection, facilitating actions that encourage producers to protect springs. This included providing materials, using technologies and installing protective fences. The delineation of these areas prevents livestock which previously had free access from entering them, preventing water source contamination and enabling the natural regeneration of vegetation.
Between 2017 and 2023, over 1,300 hectares of Permanent Preservation Areas, including all of the springs supplying the municipality of Peçanha, were effectively protected. In addition to the positive environmental impact, this project also significantly contributed to increasing landowners’ awareness of the importance of water resources and biodiversity conservation. This partnership between CENIBRA, the municipality of Peçanha and the local community strengthens relationships and facilitates cooperative engagement for sustainability and collective well-being.

For more information about CENIBRA’s initiatives in the past, click here.

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