Conservation of Water Resources and Biodiversity
Basic Approach and Policy
Basic Approach to Water Resources
Although the Nabtesco Group does not currently require a large amount of water nor water of a certain quality for its business operations, we consider the management of water resources to be an important issue for environmental conservation and are working to reduce water consumption, properly manage water quality, and prevent the outflow of water pollution substances.
The amount of water used and discharged at each base are measured every month, and the Group data are accumulated using the environmental information management tool. As for bases where the amount of water per month fluctuates greatly, we conduct surveys to identify contributing factors for the increased water usage, and implement measures to reduce the water use as necessary. As for water quality control, we continuously monitor through monthly voluntary tests and regular inspections by external experts.
In addition, we work on controlling global water usage, including that of overseas group companies Although water usage at our overseas group companies is only 10% of the usage of the Nabtesco Group as a whole, we will continue to implement controls in order to address global water risks.
There were zero violations of laws and regulations at domestic and overseas sites in FY2025. In the future, we will continue to further tighten control over water use.
The Nabtesco Group has collaborated with external initiatives to reduce water usage, responding to CDP Water* since FY2014.
*CDP Water is a CDP program that asks companies about risk awareness and response strategies regarding water risk.
Measures
The Nabtesco Group uses groundwater mainly to cool test stands and melt snow in snowy regions (Yamagata and Gifu).
- Water quality management:
- We discharge used groundwater to rivers based on the strict water quality control criteria set by the Group.
- Reduction of water withdrawal:
- We are halving the cooling water usage for air conditioners by installing high-efficiency air conditioning equipment. Additionally, we are working to reduce water consumption by recycling the cooling water used for testing equipment.
We will continue to make efforts to improve water use.
Targets and Results for the Fiscal Year
Beginning in FY2025, we established a Group medium-term target for FY2027. We will work toward reducing water withdrawal intensity per unit of sales by 5.72% compared with FY2023.
The total volume of water used by the Nabtesco Group in FY2025 amounted to 511,000 ㎥, showing a decrease from the previous year. Through efforts to recycle water used in plant facilities, the unit sales value in FY2025 was 1.66, achieving the target of 1.79.
Due to heavy rainfall caused by recent climate change, the risk of rainwater flooding our plants is increasing. The Nabtesco Group uses both oil-based and water-soluble cutting fluids in its business operations and recognizes the risk that, if rainwater enters the manufacturing facilities, oil and chemical substances may flow into rivers. To prevent this, we are making capital expenditures to install oil-water separation tanks and oil recovery equipment.
In FY2025, we spent ¥46.10 million to strengthen rainwater drainage capacity and implement waterproofing measures for buildings.
Target of Water Use Activities and FY2025 Results
| Item | Targets | FY2025 results (Unit: ㎥/one million yen) |
Status | |
|---|---|---|---|---|
| Targets (Unit: ㎥/one million yen) |
Target year | |||
| Global water use (Amount per unit of sales) |
1.79 or below | 2025 | 1.66 | Achieved |
| 1.74 or below | 2025 to 2027 (Mid-term target) | Achieved | ||
- *For the scope of data collection, please refer to “ Scope of Environment and Other Data (Excel 21.5 KB) .”
- *Data is examined by LRQA Limited with a view to ensuring the reliability of the calculated data.
Global Water Intake Amount
Global Wastewater
Addressing Water Risks
Every year, the Nabtesco Group evaluates the water risks posed to its major sites using the Aqueduct tool provided by the World Resources Institute and in reference to the “water vision” announced by the local municipalities. Based on the evaluation results obtained in FY2025, eight sites in China, two in Thailand, one in Greece were determined as high-risk areas. At these sites, we do not withdraw water from groundwater, rivers, or other natural sources, and water withdrawals from municipal and industrial water supplies are also limited. Therefore, the impact on our operations is considered limited. Going forward, we will control the risks through ESH audits and monitoring of laws and regulations.
In addition, to further promote action on water risks through the supply chain, we are conducting surveys on water use (water intake, wastewater, water quality, etc.) of Tier-1 suppliers in Japan and overseas, and evaluation of water risks using AQUEDUCT. Each supplier is analyzed and evaluated, with the results provided in the form of written feedback. We also visit specific suppliers directly and conduct interviews at web conferencing. This serves to enhance communication with suppliers while supporting knowledge sharing regarding environmental management and improved environmental stewardship. As well as engaging with suppliers, we actively participate in environmental and water related regional councils, exchanging information and conducting activities related to water conservation in order to maintain harmony with the local community.
Risk Assessment on Groundwater Use
The Nabtesco Group does not currently require a large amount of water or a certain quality of water in its business operations. However, some offices pump groundwater from a well on their premises for use. Due to this, in FY2020, the Group also investigated the impact of the use of groundwater to the water resources in the area. First, the Group performed an investigation in the Gifu Region, where the quantity of groundwater used is large. The investigation results show the Tarui Plant (for hydraulic equipment) and Gifu Plant (for aircraft equipment) of Nabtesco in the Gifu Region do not place a large burden on the groundwater resources of Tarui-cho.
The plants will monitor usage to not impact the area, in order to sustain the valuable environment over many years, while still using groundwater going forward.
Comment from an expert familiar with groundwater in Gifu Prefecture
Tarui-cho is blessed with a rich groundwater environment, where you can find spring water and a healthy population of smallhead sticklebacks (Gasterosteus microcephalus) who live there. It is also an important recharge area for the Nobi Plain. Nabtesco, which uses groundwater in Tarui-cho, cares about its impact of its business operations on the downstream area, and quantifiably assessed the groundwater and surface water circulation in the area. It is a very meaningful initiative. In order for us to enjoy the benefits of groundwater into the future, I hope Nabtesco will promote the conservation of the groundwater environment together with residents, based on the results of the assessment.
Professor Kohji Kamiya,
Department of Civil Engineering,
Gifu University
In addition to the Tarui Area, Nabtesco actively participates in regional councils related to the environment and water, and engages in water conservation activities and information exchange to harmonize with the local community.
| Name | Area |
|---|---|
| Hyogo Environmental Conservation Liaison Committee | Kobe |
| Kobe District Environmental Conservation Liaison Council | Kobe |
| Toban Regional Groundwater Usage Measure Council | Kobe |
| Gifu Prefecture Environment Promotion Association | Gifu |
| Seino Area Groundwater Usage Measure Council | Gifu |
Biodiversity Conservation
The Nabtesco Group evaluated the impact of its business activities on biodiversity by using an external tool, namely the SBTN Sectoral Materiality Tool*1. As the first step for the evaluation, we carried out a screening to identify the materiality of the impact on biodiversity of the sectors to which our businesses are related. As a result of performing the analysis by defining the pressure categories given the score of “Medium” or higher as “material pressure categories,” we found out that all our Group’s businesses needed to be assessed in more detail.
At the same time, to evaluate both the dependence and impact of our businesses on natural capital, we used the ECORE*2. The results of our assessment of dependencies and impacts in our major businesses are as follows
- *1Tool to assess the impact on biodiversity provided by the Science Based Targets Network (SBTN). Users of the tool can assess the materiality of impacts on a six-point scale for the selected business activities (sectors) and pressure categories.
- *2An assessment tool developed by the UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC), the Natural Capital Finance Alliance (NCFA), and others. It can be used to identify dependencies and impacts by business process.
Assessment of Dependencies and Impacts in Major Businesses (ENCORE) (Five-level scale from VL to VA; items rated M or above are shown)
| Business Activities | Dependencies | Impacts | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Waste Treatment | Soil and Sediment Retention | Water Purification and Water Flow Regulation | Water Supply | Storm Mitigation and Flood Regulation | Rainfall Pattern Regulation | Noise and Light | GHG Emissions | Air Pollutant Emissions | Soil and Water Pollutant Emissions | Waste Generation and Seabed Area Utilized | Water Use | |
| Manufacture of industrial robot parts and various integrated packaging systems | M | M | M | M | M | M | M | |||||
| Manufacture of aircraft parts, marine control devices, and packaging inspection equipment | M | M | M | M | M | H | M | M | ||||
| Manufacture of automatic door systems | M | M | M | M | M | M | H | |||||
| Manufacture of automotive brake systems | M | M | M | M | M | |||||||
| Manufacture of railway vehicle brake systems | M | M | H | M | ||||||||
| Sales and installation of various automatic doors | M | M | M | VH | M | M | M | M | ||||
Based on the above evaluation results, the verification results of our assessment of dependencies and impacts in our major businesses are as follows.
The risk assessment and responses based on the verification results of our assessment of dependencies and impacts are as follows:
Verification Results for the Assessment of Dependencies and Impacts in Major Businesses
| Dependencies / Impacts |
High-Priority Items |
Verification Results of Dependencies and Impacts on Natural Capital in Business Activities | Risk | Response |
|---|---|---|---|---|
| Dependencies | Water supply, purification, and water flow regulation | Although our dependence on water resources is not significant, many of our business activities are associated with this dependency. No business has a high level of dependence on water resources compared with our other businesses. While the printing industry is generally regarded as highly dependent on water resources, our printing operations do not use water and therefore are not dependent on this resource. However, because many of our business activities exhibit low to moderate dependence on water resources, we concluded that water resource management should be addressed across the Group. |
As climate change progresses, water withdrawals may increase at certain production sites due to the need for cooling air-conditioning equipment and snow-melting operations. We believe that water withdrawal risks in the regions where these production sites are located are currently low, and the impact on Nabtesco is limited at this time. |
|
| Flood and storm mitigation | Although our dependence on flood and storm mitigation is not significant, many of our business activities are associated with this dependency. No business was identified as having a particularly high level of dependence compared with our other businesses. However, because many of our business activities exhibit low to moderate levels of dependence, we concluded that initiatives to support flood and storm mitigation should be promoted across the Group. |
As climate change progresses, there is a risk that the frequency of natural disasters, including floods and severe storms, will increase. Nabtesco conducts risk assessments and implements and discloses response measures for these risks. (Already disclosed in our climate-related disclosures in accordance with the TCFD Recommendations.) | ||
| Rainfall pattern regulation | This dependency was assessed as very high for the business that installs automatic doors and related products. However, because this business performs installation work after buildings have already been constructed, it is not considered to be highly dependent on rainfall pattern regulation. | |||
| Impacts | Noise and light | Although the impact of noise and light is not significant, many of our business activities are associated with these impacts. Compared with our other businesses, the manufacture of railway vehicle brake systems was assessed as having a relatively high impact. However, this business does not conduct outdoor production activities, use equipment that generates unusual levels of noise, or operate lighting systems that produce excessive artificial light. In addition, regular monitoring is carried out, and we therefore consider its impacts to be limited. | ||
| Air pollutant emissions | Compared with our other businesses, the aircraft components, marine control systems, and packaging inspection equipment business was assessed as having a relatively high impact. Although heavy oil is used as fuel at certain plants within this business, NOx emissions are less than 1% of the applicable regulatory limit, and we therefore consider the environmental impact to be limited. | There is a risk that air pollutants, soil pollutants, and water pollutants could be released outside factory premises due to failures of exhaust gas or wastewater treatment facilities, or as a result of rainwater entering factories during torrential rainfall associated with climate change. |
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| Soil and water pollutant emissions | Although the impact of soil and water pollutant emissions is not significant, many of our business activities are associated with these impacts. Compared with our other businesses, the building and industrial automatic door systems business was assessed as having a relatively high impact. While chemical substances are used in this business, they are present only in small quantities, such as in adhesives, and we therefore consider the environmental impact to be limited. However, because chemical substances are used across many of our business activities, we concluded that chemical substance management and wastewater quality management should be strengthened across the Group. | |||
We also conducted similar evaluations for our supply chain. We assessed major suppliers accounting for 1% or more of our annual procurement value, as well as top customers in our seven core businesses. The results are as follows (items rated High or above).
| Dependencies | Impacts | ||||||
|---|---|---|---|---|---|---|---|
| Sediment | Water quality | Rainfall | Noise | Air pollution | Soil and water pollution | Invasive species introduction | |
| Upstream (some suppliers) | H | VH | H | H | H | - | |
| Downstream (some customers) | H | VH | VH | H | H | VH | |
We will also work to reduce these risks by taking action across our entire supply chain, including both upstream and downstream activities.
In addition, we conducted an assessment using the Integrated Biodiversity Assessment Tool (IBAT)*3. Within a 50 km radius of our sites, we identified proximity to areas inhabited by endangered species on the IUCN Red List and to Key Biodiversity Areas (KBA)*4. In Japan, where we have major production sites, we confirmed 75 species classified as Critically Endangered (CR), 666 species as Endangered (EN), and 538 species as Vulnerable (VU). In other regions, we confirmed 71 CR species, 342 EN species, and 529 VU species. The number of KBAs confirmed was 57 in Japan and 56 in other regions.
We will work continuously for biodiversity conservation while advancing our impact assessment method.
- *3Integrated Biodiversity Assessment Tool (IBAT) for biodiversity evaluation.
- *4Key Biodiversity Area, globally important sites for biodiversity.
