Water Resource Conservation

SUMITOMO RUBBER INDUSTRIES TOP > Sustainability > Environment > Water Resource Conservation
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Fundamental Perspective

The Sumitomo Rubber Group focuses on sustainable business practices that harmonize with society and the environment. In December 2020, the group launched its new corporate philosophy framework, “Our Philosophy,” to act as a powerful driver in achieving its overarching strategies. Their purpose—what defines their very existence—was established as: “Creating ultimate peace of mind and joy through innovation that shapes the future.” By centering every decision and action on this purpose, the group aims to enhance not just economic value but also social value, contributing to the creation of a sustainable society.
To realize “Our Philosophy,” the group has identified key material issues considering risks and opportunities across its entire value chain. Among these issues, “Climate Change,” “Biodiversity,” and the “Circular Economy” are highly interrelated. The group believes a comprehensive approach is essential, rather than tackling each in isolation, and is actively working on these areas.
Additionally, the group prioritizes the management of water resources as a significant business challenge, incorporating it into its long-term policies.
In addition, in the assessment of business risks and opportunities related to nature that we carried out in response to the Taskforce on Nature-related Financial Disclosures (TNFD), we identified water resources and wastewater as one of the material issues in the tire business and conducted a regional analysis of the value chain.

Governance

In response to the global shortage of water resources, the Sumitomo Rubber Group has set a target in its Long-Term Sustainability Policy to achieve 100% recycling of factory wastewater by fiscal 2050 at factories with high water risk. We are also working to reduce water intake and recycle wastewater in other regions. The progress of these initiatives is managed by the Environmental Management Systems (EMS) Subcommittee, a working group under the Sustainability Promotion Committee.

Strategy, Risks and Opportunities

Based on the TNFD recommendations, the Sumitomo Rubber Group analyzed the impact of its business on nature. In identifying material issues, we used the ENCORE natural risk assessment tool to evaluate and investigate nature-related risks closely linked to our Tire, Sports, and Industrial Products businesses. We then identified potential business risks throughout the value chain and considered and analyzed the magnitude of their potential impact on our business.
We also assess water resource conservation as part of our nature-related business risks and opportunities assessment. For example, there is a risk that the depletion of water resources near our factories could adversely affect the continuity of our business. However, we expect to reduce costs and environmental impact by promoting efficient water use and introducing water recycling facilities.

 
Risks
Opportunities
Policies and regulations
  • Risk of legal sanctions such as fines or suspension of business operations due to failure to meet water intake or discharge standards
  • Ensuring competitive advantage and improving sustainability by proactively establishing systems that comply with new regulations, etc.
Capital flow and financing
  • Risk of increased costs for water intake and wastewater treatment
  • Cost reduction through efficient water use
Reputation
  • Risk of damage to corporate reputation and loss of trust from customers, investors, and other stakeholders due to inadequate water resource management
  • Risk of loss of trust from local communities due to water pollution caused by factory wastewater
  • Improved consumer and investor perception and enhanced brand value through proactive water resource conservation and public disclosure of corporate responsibility
  • Improving trust with the local community through water resource conservation activities (such as river cleanup activities and tree planting in the local area)
Operations
  • Risk of depletion of water resources due to excessive water use, resulting in the inability to continue operations
  • Risk of adverse effects on the surrounding ecosystem and health hazards to employees and residents due to water pollution caused by factory wastewater
  • Risk of damage to corporate infrastructure due to natural disasters such as floods and droughts
  • Sustainable factory operations through appropriate water use and management
Internal
  • Risks of damage to corporate image and decline in employee satisfaction due to failure to implement water initiatives
  • Improvement of corporate image through proactive implementation of water initiatives, accompanied by increased employee motivation and retention

Risk Management

The Sumitomo Rubber Group has been conducting assessments based on the Aqueduct Water Risk Atlas, a tool provided by the World Resources Institute (WRI). In addition, we employ our standards regarding legal compliance, limitations on water intake, and other items to conduct risk assessments for our bases.
In these ways, we will continue to perform risk assessments for our production bases to determine which bases may be at high risk and thereupon implement concrete countermeasures.

Targets and Results

Data on wastewater by factory are presented in the non-financial data section and the environmental report for each factory.
The targets and results are as follows.

2024 target Water withdrawal (per unit) compared to the previous year: -1%
2024 result Water withdrawal (per unit) compared to the previous year: +1%
2025 target Average over the past 5 years: -1% (total)
Medium-to long-term target 100% recycled water usage at bases of operations in areas with high water security risk

Results Evaluation and Future Initiatives

The Sumitomo Rubber Group has established the Long-Term Sustainability Target, "Driving Our Future Initiatives 2050," which aims for 100% recycling of factory wastewater at locations identified as high water-risk sites. Seven overseas factories have been designated as high water-risk locations, and in 2024, Sumitomo Rubber (Thailand)’s Factory 1 and Factory 2 successfully achieved 100% recycling of factory wastewater. Other factories are also developing scenarios to achieve 100% water recycling and are progressing steadily with these efforts.

Examples of Initiatives

Reduction of Wastewater Emissions and the Purification of Effluent

The Sumitomo Rubber Group is working to purify wastewater by installing treatment equipment for reuse.
We also conduct the periodic measurement of water quality indicators such as hydrogen ion concentration index (pH), biochemical oxygen demand (BOD) and concentration of suspended solids (SS) to ensure the appropriate management of wastewater.

Activities to Raise Employee Awareness

Every year, during Japan's designated "Water Day" (August 1st) and "Water Week" (August 1st–7th), established by the Ministry of Land, Infrastructure, Transport and Tourism, we host quizzes for our employees. These quizzes focus on the importance of water resources and our company’s water-related initiatives, aiming to raise awareness in a fun and engaging way.