Water Resources

Policy and Basic Approach

Water is a finite and precious resource. The combination of economic growth and population growth in developing countries is already straining water supplies, and demand is expected to rise much further. In addition, global warming is decreasing the supply of this vital natural resource, leading to growing concerns about worldwide water scarcity.

In our Group as well, water resources are indispensable for manufacturing, which makes the responsible management of water a crucial management task. We fully understand the impact of our business activities on water resources, and thus strive to use water as efficiently as possible and maximize our efforts to prevent pollution.

We actively promote recycling and reduction in our manufacturing processes. We set strict targets for each business unit’s water reduction efforts. Our internal standards for wastewater are far stricter than those required by government regulations, and we are always working to reduce the use of chemical substances that might cause pollution. Each unit is responsible to ensure that all its employees have access to safe drinking water and that the surrounding community is treated in the same way as our own employees.

Needless to say, our water management responsibilities are not limited to our Group companies. The "Seiko Group Procurement Policy" and "Seiko Group Procurement Guidelines” govern all aspects of our interactions with our supply chain, which includes proper water management.

Going forward, we will continue to strengthen environmental awareness among our employees. We aim to promote greater understanding of the potential risks that manufacturing businesses such as ours can pose to water resources, and to teach everyone the importance of conserving and responsibly managing these gifts of Nature.

Promotion System

Important matters related to water resources are discussed and resolved in the Sustainability Committee, which was established to facilitate the formulation of policies related to the Seiko Group's ESG (Environmental, Social, and Governance) and SDGs (Sustainable Development Goals), and to carry out activities based on those policies. Resolutions made in the Sustainability Committee are reported to the Board of Directors, which oversees the Committee and regularly discusses the status of related issues, including water resources.

Assessment of Water Risks

We conducted internal assessments at all Group production sites, using the Aqueduct tool developed by the World Resources Institute (WRI) and the Water Risk Filter from the World Wildlife Fund (WWF), two standard tools for water risk assessment. These investigations covered not only the current situation, but also projections up to the year 2030. They revealed that five overseas sites (three in Thailand and two in China) are located in regions with high water stress. The total water withdrawal at these sites in fiscal year 2023 amounted to 177 thousand ㎥, accounting for 23.9% of the total water withdrawal of our Group (based on FY2023 figures).

Furthermore, each business unit within our Group is currently identifying risks related to floods and other critical events, both for themselves and their primary suppliers, and formulating appropriate responses.

We will continue our efforts to understand and address water risks throughout our manufacturing facilities and supply chain.

* These sites have been determined to have High and Extremely High Water Stress risk profiles according to WRI Aqueduct metrics.

Water Withdrawals and Water Stress in Fiscal Year 2023

Goals

In line with our medium-term management plan SMILE145 (FY2022 to 2026) and with the Group's growth and commitment to help solve social issues, our goal from FY2024 to FY2026 is to maintain water withdrawal intensity (the volume of water withdrawal per revenue unit) below the baseline year of FY2021 (0.33 thousand ㎥ per hundred million yen) in each fiscal year.

We will continue to use water resources efficiently, and actively implement measures to reduce water withdrawal.

Summary of Fiscal Year 2023

Water Withdrawal

Recognizing water as a valuable natural resource, we are always working to use it more efficiently. In addition to daily water-saving efforts, we have implemented pure water recycling in the parts cleaning process. In 2023, our water withdrawal decreased by approximately 4.9% in Japan and 0.3% overseas compared to the previous year, resulting in an overall reduction of 2.8%, or 21 thousand ㎥. Additionally, with increased sales, the water withdrawal intensity decreased from 0.29 thousand ㎥/hundred million yen in 2022 to 0.27 thousand ㎥/hundred million yen in 2023.

Wastewater Management

We have established strict voluntary standards for wastewater. We monitor our wastewater daily and specially purify it in treatment facilities to ensure compliance with legal standards. In 2023, there were no legal infractions regarding either water volume or wastewater quality at any of our Group's production sites.

Going forward, we will conduct on-site interviews regarding water use at production sites to gain a more detailed understanding of the situation and continue efforts to reduce total water withdrawal.

Water withdrawal and Water withdrawal intensity

Examples

Among Group initiatives to reduce water withdrawal, our manufacturing companies are taking steps such as pure water recycling, while back offices are promoting water-saving awareness activities and introducing water-saving equipment.

SII Crystal Technology Inc. utilizes purified water in its parts cleaning process. After cleaning, the water is collected and, instead of being discharged, undergoes a purification and recycling process. The recycled water is then reused in the cleaning process. This system allows for the annual circulation and reuse of approximately 17.6 thousand cubic meters of water.