Our company manufactures products that contain water such as Glicoat-SMD as well as products that have a strong relationship with water such as chlorinated isocyanurates. Furthermore, we use water for cleaning in manufacturing processes and as cooling water for equipment. Securing an adequate supply of water with appropriate quality is critical to the continuity of our business operations.

Given the importance of access to water in our business activities, we comply with water-related laws and regulations and thoroughly manage water intake and discharge at our plants. We will continue to conserve water resources including improving water usage efficiency.
We will utilize the powerful oxidizing, bleaching, and cleaning properties of chlorine to contribute to securing water resources across various fields, including sanitary products for commercial and household use, ballast water (seawater used as ballast in ship hulls) treatment, drinking water, and hygiene management in various facilities.

To identify risks related to water usage and discharge in the Group, we conducted an assessment using AQUEDUCT (https://www.wri.org/aqueduct), a tool by the World Research Institute (WRI) to evaluate potential water-related risks for the areas where the Group’s manufacturing facilities are located.
The results showed that the ratio of water intake from areas classified as “high” water stress or higher was 0%. However, we anticipate the worst-case scenario, and utilize multiple water sources (groundwater, tap water, and industrial water) to diversify risks. As we had never been forced to adjust production due to water shortages in the past, we do not believe that we will be materially impacted by water risks in financial and strategic terms.

We received a “A-” score in the “climate change” category of the 2025 assessment by CDP, ranking in the third-highest tier of the eight levels. Our current “A-” score is classified as “Management level,” which indicates that we have been assessed as “recognizing our environmental risks and impacts and taking action.”
CDP^* is a nonprofit organization that requires companies and local governments to disclose information regarding countermeasures for the environmental issues such as climate change, water sources protection, and forest conservation, based on requests from institutional investors and major purchasing companies worldwide with a strong interest in the environment. Its primary activity involves analyzing data submitted by companies and local governments, evaluating them on an eight-tier scale from A to D-, and encouraging them to take countermeasures for environmental issues.

*CDP was originally called the “Carbon Disclosure Project.” With the expansion of the scope beyond carbon to include water security and forests, “CDP” is now the official name. Global site: https://www.cdp.net/en