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.
Our group recognizes the proper management of water resources as a critical business challenge. To address the global water scarcity crisis, we monitor water usage across all our production sites and work to reduce our environmental impact.
Furthermore, as part of our biodiversity and natural resource initiatives, we are conducting assessments of business risks and opportunities related to nature, in line with the recommendations of the Task Force on Nature-related Financial Disclosures (TNFD). Within this assessment, water resources and wastewater have been identified as key business issues. We are advancing further countermeasures through analysis of regional characteristics within our value chain.

Governance

Within Our Group, initiatives related to water resources are promoted in an integrated manner under the leadership of the Sustainability Management Promotion HQ, in collaboration with top management and relevant departments.
To promote sustainability management, Our Group convenes the Sustainability Promotion Committee twice a year. The Committee is chaired by the Executive Director in Charge of Sustainability and consists of executive officers responsible for each division. Through these meetings, the Committee ensures the implementation of Group-wide policies and monitors progress on material issues.
Under the Sustainability Promotion Committee, subcommittees have been established as working groups. In the area of water resource management, the Environmental Management System (EMS) Subcommittee and the Biodiversity Subcommittee operate as cross-functional organizations to monitor initiatives and promote related activities.

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

To manage water-related risks, our group conducted risk assessments at all production sites using the WRI Aqueduct score—a tool for evaluating water risks— along with our own criteria, such as the presence of relevant regulations and the volume of water withdrawal. Based on the results, seven sites (representing 28% of all production sites) were identified as high water risk locations, and these sites also account for 28% of the total water withdrawal across all production sites.



Name of Site Production item Location
Changshu Factory Automotive tyres Changshu Economic Development Zone, Jiangsu Province, China
Hunan Factory  Automotive tyres  China Hunan Province Changsha City
Thailand Factory Automotive tyres/ Motorcycle tyres
Agricultural and Industrial Vehicle tyres
Thailand, Rayong Province, Amata City Rayong Industrial Estate
Indonesia Factory  Automotive tyres/ Golf ball
Motorcycle tyres
 Indonesia, Karawang Regency, Cikampek City
Brazil Factory Automotive tyres  Brazil, Paraná State, Fazenda Rio Grande City
Turkey Factory  Automotive tyres  Republic of Turkey Çankırı
South Africa Factory  Automotive tyres Republic of South Africa, KwaZulu-Natal Province

 

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 Results Water withdrawal (per unit) compared to the previous year: +1%
2025 Target Average over the past 5 years: -1% (total)
2026 Target Water withdrawal (per unit) compared to the previous year: -1%
Mid- 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," 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

We have installed wastewater treatment equipment and are working to purify effluent to prevent any adverse impact on the surrounding environment.

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.