Toward Circular Economy (Resources such as Water and Waste)
Approach and Policy
As a manufacturing company, we utilize various resources such as water, minerals, and energy to deliver products to society. While society as a whole benefits from natural resources, their depletion is a significant social issue that should be addressed on a global scale, affecting not only our manufacturing company but the entire planet. We regard the realization of a circular society as an important management issue that must be addressed responsibly.
We believe that in order to continue using the Earth's limited resources and energy for a long time, it is necessary to use resources cyclically and improve productivity per resource. Therefore, we are working on "development and implementation of sustainable plastic chemical recycling technologies," "waste resource recovery and efficient use of resources," "manufacturing that considers the entire product lifecycle from design and development to disposal," and "co-creation with various stakeholders in the value chain."
Goals and Progress
1. Resource Circulation in Products
We consider the entire product life cycle, from design and development to disposal, promote activities across business divisions and research and development departments, and work on recycling waste and efficient use of resources. To realize a circular society, we are addressing the following perspectives and will consider specific goals and KPIs going forward.
Design/Development: Reducing the usage of resources derived from minerals and fossils, using circular materials, suppressing waste generation, improving recyclability, extending product lifespan, and quantifying the environmental impact of the product life cycle.
Manufacturing: Minimizing energy, water, and other resource consumption throughout the entire manufacturing and product life cycle.
Value Chain: Co-creation with various stakeholders such as suppliers, customers, administrative bodies, municipalities, and international organizations.
Efficient use of water and reduction of water consumption.
We set group-wide annual goals related to water resources. At each business site, we actively work on the efficient use of water and the reduction of its consumption while considering their individual characteristics, and we also strive to maintain and improve the quality of the water discharged.
Key Items (KPIs) Targets and Results
2. Efforts to address water-related risks
To identify and mitigate water-related risks associated with our operations, we conduct assessments across our manufacturing sites. Using the World Resources Institute (WRI) Aqueduct 4.0 framework, we screen sites for water risks and identify locations requiring detailed investigation. Based on these assessments and stakeholder interviews, we analyze regional water-use conditions and risk factors and develop watershed-specific roadmaps to support sustainable water management and business continuity.
In 2024, based on Aqueduct assessments, we conducted detailed investigations and surveys at 15 high-risk sites located in India, Thailand, and China. The findings were used to develop water management roadmaps tailored to the characteristics of each watershed.
Detailed assessments and stakeholder interviews have been conducted in watersheds where our sites in India and China are located. Based on risk evaluations and current initiatives, we are considering future actions for water resource management in line with the roadmaps developed.
3. Reduction and Effective Utilization of Waste
We promote the reduction of waste generation and the reduction of final landfill amounts through effective utilization and recycling.
Goals and Actual Results for Key Performance Indicators (KPIs)
Utilization of LCA
Life Cycle Assessment (LCA) is a method for quantitatively evaluating the environmental impact throughout the life cycle of a product or service. We have established a system for calculating greenhouse gas emissions for each product based on the LCA evaluation method (calculation of carbon footprint (CFP)). Additionally, we design products with consideration for the environmental impact throughout the entire life cycle from the product development stage.
Specific Initiatives (Circular Economy)
1. Kawasaki Plastic Recycling (KPR)
Since 2003, Resonac has operated the Kawasaki Plastic Recycling (KPR) business, which utilizes waste plastics from households and businesses as feedstock. Through high-temperature gasification, waste plastics are broken down at the molecular level and converted into hydrogen and carbon dioxide.
The low-carbon hydrogen produced through this process is used as a raw material for ammonia production. Resonac’s ammonia produced using this hydrogen became the world’s first ammonia manufacturing process to receive the Eco Mark certification in 2015.
Carbon dioxide generated through the process is not released into the atmosphere but is instead utilized as a raw material for dry ice, carbonated beverages, and medical-grade carbon dioxide products, contributing to resource circulation.
Chemical Recycling of Used Store Uniforms
In collaboration with Lawson, Inc. and MC Fashion Co., Ltd., Resonac has launched a chemical recycling initiative for used employee uniforms collected from Lawson stores nationwide.
By converting uniforms that were previously incinerated into reusable resources through gasification, the initiative is expected to reduce CO₂ emissions by approximately 80% compared with conventional disposal methods.
Chemical Recycling of Used Plastic Packaging
Resonac, Lotte Co., Ltd., and Nippon Waste Group have established a traceable chemical recycling scheme for used plastic packaging generated at Lotte’s Sayama Factory. Third-party certification ensures the traceability of recycled materials throughout the process.
- ECOANN
2. Joint Research with Tohoku University: Production of SiC Power Semiconductor Materials from Waste Silicon and CO₂
- Resonac and Tohoku University are jointly developing a technology that uses silicon sludge generated during silicon wafer manufacturing and carbon dioxide as raw materials to produce silicon carbide (SiC).
- This carbon recycling technology applies mineralization concepts to simultaneously recycle waste materials and greenhouse gases while producing valuable SiC feedstock. The technology is expected to reduce CO₂ emissions by approximately 110 tons per 100 tons of SiC powder produced.
3. Aluminum Suspension Utilizing Scrap-Derived Aluminum Materials
- Resonac has developed an aluminum suspension component with up to 90% recycled aluminum content. By using AI-based composition prediction technology, impurities in scrap materials can be optimized and neutralized, enabling their use in high-strength automotive applications.
- The technology has been confirmed to reduce greenhouse gas emissions by approximately 60% compared with conventional aluminum suspension products.
Specific Initiatives (Water)
1. Circular Use of Water Resources at Resonac Highpolymer Materials (Shanghai)
- Resonac Highpolymer Materials (Shanghai) introduced improvements to cooling systems and water reuse processes, replacing water-intensive spray cooling methods. Combined with steam recovery and reuse, these measures have reduced annual water consumption by approximately 7,000 m³.
2. Rainwater Utilization at Resonac Materials (Suzhou)
- At the second plant of Resonac Materials (Suzhou), rainwater is collected and stored in a fire protection water tank for reuse. The stored rainwater is used for irrigating green spaces on-site, replacing part of the approximately 1,000 m³ of annual water demand for landscaping. A rainwater collection reservoir (155 m³ capacity) is expected to provide an average of approximately 80 m³ of rainwater per month.
