Environment - Water

The Group believes that helping mitigate global environmental impacts through the effective use of resources, such as water, energy, and raw materials, and the prevention of environmental pollution are indispensable actions to ensure the sustainability of companies. With this belief, we will advance various initiatives and also build a sustainable business by actively deploying innovative technologies.

Water

Water resources affect not only the water used in the production process but also the procurement of raw materials. Droughts, floods, and water quality deterioration might also affect our production activities.
We are working to develop business plans in line with Group-wide targets and action plans, including formulating water management policies on a global basis and identifying risks by using AQUEDUCT provided by the World Resources Institute (WRI).

Policy on water

We have listed the efficient utilization of water resources as one of the materialities of Resources and Environment.
In order to achieve effective use of water resources across the entire Group, the Global Working Team (currently the Global Team), under the ESG Committee, established a global policy on water in 2021. We will implement specific initiatives, including thorough management and effective use of water consumption and wastewater discharge, reuse of water and water conservation following this policy.

-Nippon Paint Group Global Policy-

We strive to use water efficiently and manage wastewater responsibly.

Targets and results

The Group believes it necessary to decrease dependency on water resources in order to achieve the materiality and is committed to managing water quality and reducing water usage.
We will strive to reduce water usage in production processes as well as effectively utilize water, such as through recycling, in accordance with the circumstances of each country and region. With an individual target set for each company and business site, we are implementing specific measures and managing their progress.

Example of water quality pollution prevention target

In Japan, we have established an even more stringent voluntary management standard than legal requirements through Responsible Care activities in striving to reduce environmental impacts.

Targets for 2020Results in 2020Evaluation of 2020*Targets for 2021
  • Comply with voluntary management standards (water pollution: COD, total phosphorus, total nitrogen).
  • Achieve zero incidents of soil and groundwater contamination.
  • Maintained compliance with voluntary environmental standards
  • Achieved zero incidents of soil and groundwater contamination.
+++Follow-up on targets for 2020

* Evaluation standard: Domestic average achievment rate of +++: at least 80% or above, ++: at least 50%, +: less than 50%

Example of water usage reduction target

At NIPSEA Group, while we are in the process of adjusting long-term sustainable goals, we have established five high priority areas, including important energy to the NIPSEA Group and GHG emissions.
One of the targets for these areas is to reduce water intensity, while we also strive to reduce water usage with comprehensive measures of the 3Rs—reduce, reuse and recycle.

NIPSEA Group’s Targets Outlined in FY2019NIPSEA Group’s FY2020 Progress
Reduce water intensity 2%
Water intensity -30.4%

(Source:NIPSEA LFG SUSTAINABILITY REPORT 2020)

Water management structure and plan

Management across the whole Group and at the company level

As part of efforts to address materiality, the Global Team that works directly under the Directors, Representative Executive Officers & Co-Presidents, carries out identification of issues and measures related to water risks, establishment of goals and action plans, and monitoring of progress.

Specifically, the Global Team shares the status from various regions where the Group has business operations, while learning about advanced examples within the Group. The Global Team also sets targets to be achieved globally and formulates measures that suit the situation in each region. In addition, the Global Team  conducts discussions to identify and evaluate risks and opportunities pertaining to water risk and reports their outcomes to the Co-Presidents.

On-site management

■ Reduction of water usage
The Group is committed to reducing water usage at each company and region with consideration for their respective water environments.
For example, in Japan, we are working to follow through on water conservation and reduction of water usage by streamlining the cleaning process and recycling cleaning water at production sites. Each company and plant is carrying out their own management plan and target setting with regard to water usage.

■ Prevention of water quality pollution
Although the water environment and water properties vary by each plant and region, voluntary standards that are more stringent than regulations have been established at many plants in striving to prevent pollution of water quality.
The management plan and targets on water quality are established by each company and plant.

Environmental management, including water, is incorporated into daily activities through Responsible Care activities. For details on the management system, please see here.

Water risks evaluation

For the purpose of our business, water is used as a raw material for paint, tank cleaning, and as a coolant for boilers and air conditioning systems; hence, water stress is defined as facing persistent difficulties in water intake.
Each plant of the top seven locations of water consumption within our domestic Group locations (Chiba, Takahama, Osaka, Hirakata, Okayama, Tochigi, and Toyoake) has been assessed for water stress level using the AQUEDUCT* tool provided by World Resources Institute (WRI), and the results confirmed a low water stress level in terms of water intake.

In the future, we will assess the current and future water risk using AQUEDUCT also for overseas partner locations, and strive to reduce the impact of water risks with consideration for the regional characteristics (drought and seasonal changes at water sources) and business characteristics (water usage status during manufacturing) while giving priority to locations with high risks, if they exist.

*AQUEDUCT: An information world map indicating water risks developed by the WRI. A tool that enables water evaluation based on 12 types of water risk indicators, including water stress such as physical risks (quantity and water quality) and regulatory risks related to water resources.

Data related to water

Water usage (by water source)

Due to the impact of the COVID-19 pandemic, the amount of water intake and consumption decreased as a result of reduced production volume in 2020.

Reporting boundary:
FY2016 to FY2018: Nippon Paint Automotive Coatings (NPAC), Nippon Paint Industrial Coatings (NPIU), Nippon Paint (NPTU), Nippon Paint Surf Chemicals (NPSU), Nippon Paint Marine Coatings (NPMC) (April–December for FY2016)
FY2019 to FY2020: NPAC, NPIU, NPTU, NPSU, NPMC, AS Paint (ASP), AS Resin (ASR), and Nippon Paint Anti-Corrosive Coatings (NAC)

Wastewater discharge and COD, total phosphorous, and total nitrogen emissions by year

Due to production adjustments following the COVID-19 pandemic, the amount of wastewater discharged in 2020 was down only slightly compared to 2019.

Reporting boundary:
FY2016 to FY2018: Nippon Paint Automotive Coatings (NPAC), Nippon Paint Industrial Coatings (NPIU), Nippon Paint (NPTU), Nippon Paint Surf Chemicals (NPSU), Nippon Paint Marine Coatings (NPMC) (April–December for FY2016)
FY2019 to FY2020: NPAC, NPIU, NPTU, NPSU, NPMC, AS Paint (ASP), AS Resin (ASR), and Nippon Paint Anti-Corrosive Coatings (NAC)

Waste water discharge (by discharge destination)

Waste water discharge (thousand m3)*


FY2018FY2019FY2020
Fresh surface water-112100
Brackish surface water/seawater-00
Groundwater-00
Third party destinations-193189
Total217305289

* Reporting boundary:
FY2018: Nippon Paint Automotive Coatings (NPAC), Nippon Paint Industrial Coatings (NPIU), Nippon Paint (NPTU), Nippon Paint Surf Chemicals (NPSU), Nippon Paint Marine Coatings (NPMC) (April-December for FY2016)
FY2019 to FY2020: NPAC, NPIU, NPTU, NPSU, NPMC, AS Paint (ASP), AS Resin (ASR), and Nippon Paint Anti-Corrosive Coatings (NAC)

Initiatives aimed at reducing water usage

Company-wide initiatives

In aiming to reduce the amount of water usage, we are conducting evaluation and management by water intensity at the company level.
Water intensity can be roughly divided into two categories: 1) water intensity used in the production process and 2) water intensity for raw materials.

1) In order to reduce water intensity in the production process, we are managing and assessing the specific amount of water usage in cleaning equipment at some plants, as well as have begun initiatives to reduce water intake by recycling coolant water.
Moreover, we have included checks on water saving efforts as part of the safety patrol (checks for leakage and overflow) and started to effectively utilize rainwater and treated water from wastewater treatment plants.
2) As for the reduction of water intensity for raw materials, while the amount of water used (water intake) for raw materials will unavoidably increase as paint becomes water-based, we are considering the development of or replacement with nonvolatile materials in the paint to reduce water content.

Example of powder paint—Chiba Plant

Powder paint is one example of a product with reduced water intensity in raw materials.
Powder paint, which does not contain water as a raw material, does not use any organic solvent and is recyclable and reusable as an uncoated paint; thus, generates zero waste. In addition, powder paintis conducive to labor-saving and automation. As such, we anticipate that the powder paint market will grow.
In 2019, we newly launched operations of the Chiba Plant, which is primarily involved in the manufacturing of powder paint. Moreover, we are considering a recovery system for paint that does not use water and chemicals for products other than powder paint.

We respond to surveys from CDP, an international non-profit organization. In fiscal 2021, we responded to the climate change questionnaire and water security questionnaire.
See here for our response to the CDP water security questionnaire.

Environment - Water initiatives

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