Sustainable Use of Natural Capital
Effective Use of Water Resources
Examples of Initiatives
To maintain production at worksites and conserve nearby aquatic environments, we strive to appropriately manage wastewater,
achieve more sophisticated activated sludge treatment, and promote effective water use based on water risk evaluations at eachproduction base.
Protecting the Aquatic Environment
In addition to our initiatives aimed at reducing overall water use, we have realized thorough purification of wastewater fromworksites by operating stable and sophisticated wastewater treatment facilities.
● Responding to Increasing Sophistication of Activated Sludge Treatment

At all Works, we are striving to develop management technologies for water treatment that will further reduce our environmental
impact and apply these technologies to realize safe and secure wastewater treatment.
At Works, for process wastewater that is difficult to break down, which was conventionally incinerated for treatment, we havedeveloped an activated sludge treatment utilizing microbial immobilization technology to stabilize the process water and reduce
treatment costs. We are still considering applying this treatment to a wider scope of water.
Reduction of Process-derived GHG: Innovations in Wastewater Treatment Technology)● Water Area Surveys Conducted around Works (Misawa Works)

To confirm the impact of business activities on water areas, we conduct aquatic wildlife surveys of the Sabishiro River, into which
process water from the Works flows.
In the Sabishiro River, we confirmed 10 species of precious aquatic benthic organisms, such as a vulnerable species ofStenothyra and the endangered species Cottus reinii. We determined that we were maintaining ecosystems with extremely goodwater quality.

Stenothyra

Cottus reinii

Dugesia japonica

A subspecies of Tubifex tubifex● Responding to Water Quality Standards

We are strengthening our voluntary management to continually reduce the COD, nitrogen, and phosphorus in wastewater emitted into the ocean and waterways from wastewater treatment facilities. In addition, we have realized stable treated water quality
by enhancing the management technologies used in our water treatment facilities. We are continually working to reduce theimpact of water emissions from our plants on Tokyo Bay and other closed coastal waters where regulatory systems have been
implemented to control the total water emissions of COD, nitrogen, and phosphorus.
● Promoting the Effective Use of Water

We investigate water risks related to intake, effluence and physical risk at each worksite and Group companies in Japan andoverseas. We uncover various issues related to the use of fresh water on the worksite level and assess and manage the associatedrisks. In addition, we strive to reduce the amount of water we use by examining more effective ways to use water by application,
while continuing to maintain and improve the quality of water released from our business sites into public water resources suchas the ocean and waterways.

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Sustainable Use of Natural Capital■ Water Usage (Sumitomo Chemical Group)

Sumitomo Chemical Group(Breakdown 1)
Sumitomo ChemicalGroup companies in Japan
Overseas Group companies(Breakdown 2)
SeawaterFresh water(Million tons)

FY2020

FY2021

FY2022

992

970

871

261
723
7.99

269
693
8.27

280
583
7.58

884
109

862
108

764
107

Note: Water usage volume includes seawater

Wastewater Detoxification Initiatives (Misawa Works)
Wastewater from the Misawa Works goes through general activated sludge treatment,
then, after finishing tertiary treatment of activated carbon absorption and the removalof floating substances through coagulation and sedimentation, analysis equipment does
quality checks and the water is released into public waterways.

Activated sludge treatment facility

Water risk assessment in areas where major production sites are locatedRegarding maintaining production at production bases in the Sumitomo Chemical Group, we conduct water risk evaluations at
each production base from the dual perspectives of physical water risks and water quality susceptibility risks.
● Evaluating Physical Water RisksThe Group evaluates the baseline water stress in communities where production bases are located as well as underground waterstress, the severity of droughts caused by seasonal changes in the water supply, the water storage capacity of the drainage basin,projected changes in water stress, and the percentage of water resources in the drainage basin that are protected.
● Evaluating Water Quality Susceptibility Risks of Intake and Effluence

The Group evaluates susceptibility in terms of access to drinking water, water pollution, protected downstream areas, and thepresence of endangered species in bodies of fresh water identified by the International Union for Conservation of Nature (IUCN).
● Initiatives in regions with declining water resources

Based on the results of water risk assessment, we are taking measures tailored to local needs.
LocateAround Bhavnagar Plant of Sumitomo Chemical India Ltd.

Evaluate

Water resources are decreasing due to population growth, increased demand for agricultural water, anddecreased precipitation.

AssessIn the event of a water supply shortage, Sumitomo Chemical India will not be able to secure sufficientwater for its production activities and will not be able to maintain stable operations.

PrepareThe company purchases domestic wastewater from households, treats it in the factory using earthworm
farming technology, and reuses it. This approach reduces the use of river water by more than 70% while
ensuring a stable water supply for production activities.

Effective Use and Management of Yoshioka Springs (Ehime Works)
The name of Yoshioka Springs comes from the Yoshioka family’s residence and pond. To provide water
to the Kawahigashi district, which had been struggling with water shortages, the springs were created in1917 by the local residents, and a canal was completed in 1921. After passing through the ownership ofseveral companies, Sumitomo Chemical currently manages the springs.
The supply of water from Yoshioka Springs uses height difference and does not require an outsideforce. This important source of water for the Company is also used in districts throughout the city for
irrigation. To preserve the aquatic environment, we remove weeds and clean the springs and grounds at
Ehime Works around three times a week.

2Water treatment at theBhavnagar plant

Present-dayYoshioka Springs