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 understand the risks related to water use and discharge within our group, we conduct water risk analysis at business sites of our company and overseas consolidated subsidiaries. In 2024, an assessment of the potential water-related risks in the regions where the business sites are located was conducted using the World Resources Institute (WRI)'s AQUEDUCT "Aqueduct 4.0 framework" (https://www.wri.org/aqueduct).

In the comprehensive risk assessment, out of the 144 sites evaluated, 37 sites have a "medium" or higher risk, and overall, the water risk tends to be low. It was confirmed that the consolidated subsidiary Allied Resonac Brake India Private Ltd. (ARBI), located in India, is situated in a region classified as "extremely high risk." The area where ARBI is located is at high risk for water shortages such as depletion and drought, and the risk related to water quality is also considered high.

ARBI is a site primarily engaged in the manufacture of automobile brake shoes, brake linings, and brake pads, situated in Rajasthan state, which has been designated by the government as a water-scarce region subject to water use restrictions. Under these restrictions, efforts are being made to establish a production system by changing the washing process and reusing water. We have also installed water purification facilities at our sites to provide safe drinking water to employees. In addition, we carry out community contribution activities such as installing rainwater reservoirs and supplying safe water to schools. ARBI has set a goal of zero water usage during manufacturing and is planning further improvements to manufacturing processes and changes in cleaning technologies.

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

Resource Circulation of Used Plastics

Used plastics account for 60% of general waste and, due to their diversity in types and materials, their disposal methods have become a social issue. Since 2003, our company has been operating a "Plastic Chemical Recycling Business" utilizing used plastics (referred to by our company as "Kawasaki Plastic Recycling (KPR)"). At KPR, used plastics disposed of as garbage from households and businesses are gasified at high temperatures to break them down to the molecular level, extracting hydrogen and CO₂ (gasification chemical recycling).

Our ammonia, which uses a portion of low-carbon hydrogen produced at KPR as raw material, was the first in the world to receive the Eco Mark as a manufacturing process in 2015, and it is called "ECOANN."

On the other hand, without releasing CO₂ into the atmosphere, Resonac Gas Products Co., Ltd. achieves resource circulation by using it as raw material for dry ice, carbonated beverages, and medical carbon dioxide. 

It should be noted that KPR is the only company in the world that has operated a gasification chemical recycling plant stably for nearly 20 years.