黑料门

Water Resources-Related Targets

黑料门 Group 2026 Medium-Term Management Plan

Data target range or company leading initiatives: 黑料门 Group Consolidated

	Major initiatives	Metrics	Reference results	Targets	Medium to long-term targets
			FYE March 2023	FYE March 2027	FYE March 2031	FYE March 2051
1	Reduce water consumption through the efficient use of water and active adoption of water-saving equipment, etc.	Water usage reduction rate (compared to FYE March 2021 as reference year) * Per unit of net sales	13.3%	20% or higher	25% or higher	Reduce by half
2	Expand water resource cultivation activities such as forest conservation at factory water sources	Water source recharge rate	41.2%	80% or higher	Water neutral

黑料门 Group 2023 Medium-Term Management Plan

KPI	Base Year	Results			Targets
		FYE 3/2022	FYE 3/2023	FYE 3/2024	FYE 3/2024	FYE 3/2031	FYE 3/2051
Reduce company-wide water consumption per unit of sales by at least 15% by FYE 3/2031 (compared with FYE 3/2021) [黑料门 G, consolidated]	FYE 3/2021	6.4%	13.4%	15.7%	-	15% or more	50%
Replenish an amount of water to nature equivalent to 45% the amount used in our products by FYE 3/2031 [黑料门 G, consolidated]	-	24.2%	41.3%	111.0%	27% or more	45% or more	100% (Water Neutral)

* Scope of aggregation: Consolidated 黑料门 Group

Position on Water Resources

Global demand for water is expected to increase further due to improved living standards associated with population and economic growth. Predictions indicate that more and more areas will face water scarcity. Water is an essential resource for the 黑料门 Group's business activities.

For this reason, the 黑料门 Group recognizes securing water resources as one of its most key social issues.
We have therefore established water resources targets, and making efforts to reduce environmental impact, such as through efficient use of water, and proper drainage management across the entire 黑料门 Group. We also conduct water risk evaluations at each of our business site both in Japan and overseas.

Further, the 黑料门 Group also works with its employees and stakeholders to cultivate water resources through forest and watershed conservation activities.

Secure Water Resources

Water Risk Survey Results

To understand the impact of water risk on our business continuity, we use Aqueduct and other tools to survey water risk at both Japan and overseas production sites and research facilities. We also conduct interviews at these sites. Aqueduct is a tool published by the World Resources Institute to evaluate global water risk by latitude and longitude.

Using Aqueduct survey results, alongside analysis of our own domestic and overseas production sites (quantity and quality of water used, and the products manufactured), we identified sites which face a high water risk.
We can see that water consumption in areas with relatively high risks to water resources* was about 3% of the total, according to the latest data (FY2021 results).
Looking towards the future, we will identify an order of priority, and a schedule for carrying out necessary water risk countermeasures, then implement them systematically.

* Using Aqueduct, we analyzed severity of stress on water resources (including Baseline Water Stress and Baseline Water Depletion), as well as Seasonal Variability. The term "areas with relatively high risks to water resources" above refers to areas where Aqueduct's risk analysis pointed to a high current or future risk.

		Drought Risk	Flood Risk	Water Quality Risk
Total (73 Business locations)		15% (11/73)	55% (40/73)	16% (12/73)
	Japan (52 Business Locations)	0% (0/52)	58% (30/52)	0% (0/52)
	China (5 Business Locations)	20% (1/5)	80% (4/5)	60% (3/5)
	Asia (Excluding Japan and China) (13 Business Locations)	62% (8/13)	31% (4/13)	69% (9/13)
	North America and Europe (3 Business Locations)	67% (2/3)	67% (2/3)	0% (0/3)

* The locally provided water hazard map information is incorporated in the flood risk results for Japan and the United States.

Gap analysis from Aqueduct survey results

In addition to survey results from Aqueduct, we conducted questionnaire surveys at all production sites in Japan and overseas. As a result, we discovered that some water-related complaints and other issues had occurred at some sites, though no disputes had occurred.

Assessing water risks for suppliers

In 2021, we conducted questionnaire surveys with 20 major suppliers to assess their water risks. Going forward, we will promote engagement with suppliers to avoid these risks.

Water Usage Volume Results

	Unit	FYE 3/2020	FYE 3/2021	FYE 3/2022	FYE 3/2023	FYE 3/2024
Global*2	thousand m3	23,397	22,571	21,255	20,623	20,855
Per unit of sales (Global)	m3/hundred thousand yen	1.87	1.89	1.78	1.94	1.89
Japan	thousand m3	21,979	21,189	19,808	19,516	19,468
Per unit of sales (Japan)	m3/hundred thousand yen	1.89	1.92	1.83	2.07	2.00

	Unit	FYE 3/2020	FYE 3/2021	FYE 3/2022	FYE 3/2023	FYE 3/2024
Total fresh water	thousand m³	23,397	22,571	21,255	20,623	20,855
	%	100	100	100	100	100
Tap water	thousand m³	2,619	2,391	2,259	1,851	2,043
	%	11	11	11	9	9.8
Water for industrial use	thousand m³	5,329	4,888	4,680	4,505	4,292
	%	23	22	22	22	20.6
Rivers, lakes, and marshes	thousand m³	0	0	0	0	0
	%	0	0	0	0	0
Ground water	thousand m³	15,446	15,289	14,313	14,270	14,542
	%	66	67	67	69	69.6
Rainwater	thousand m³	3	3	3	3	3
	%	0	0	0	0	0

• Click here for the Water usage volume (to ESG data)

	FYE 3/2020	FYE 3/2021	FYE 3/2022	FYE 3/2023	FYE 3/2024
Global2	19,437	18,226	17,397	17,412	19,388
Japan	18,415	17,248	16,450	16,732	18,358

		Unit	FYE 3/2020	FYE 3/2021	FYE 3/2022	FYE 3/2023	FYE 3/2024
Total		thousand m³	19,437	18,226	17,397	17,404	19,388
		%	100	100	100	100	100
	Sewerage	thousand m³	8,729	8,156	7,979	7,483	7,319
		%	45	45	46	43	37.8
	Discharge into rivers	thousand m³	10,614	9,991	9,324	9,845	11,972
		%	55	55	54	57	61.7
	Discharge into ocean	thousand m³	0	0	0	0	0
		%	0	0	0	0	0
	Discharge into groundwater	thousand m³	94	78	94	80	93
		%	0	0	1	0	0.5

Unless otherwise noted, the data refers to the domestic 黑料门 Group (consolidated and equity-method affiliates).

The unit factors for FYE 3/2022 results and earlier are calculated from consolidated sales before applying the "Accounting Standard for Revenue Recognition."

The unit factors for FYE 3/2023 and beyond are calculated from consolidated sales after applying the "Accounting Standard for Revenue Recognition."

1. Aggregated based on water inatake volume.

2. 黑料门 Group (domestic 黑料门 Group and 15 overseas production companies [13 companies in FYE 3/2020, 14 companies in FYE 3/2021, 15 companies in FYE 3/2022, 14 companies in FYE 3/2023]).

Specific Initiatives to Secure Water Resources

In an effort to solve the social issue of securing water resources, the 黑料门 Group conducted a survey on water risks at its production sites in Japan and overseas. We are taking specific actions based on the results of this survey. In areas with drought risks, we will strengthen measures to reduce water consumption by striving toward more efficient water use and installation of water-saving equipment. In areas with water quality risks, we will establish in-house standards for water quality as it pertains to water intake and discharge, and we will also strengthen our monitoring of these. At sites with flood risks, we will take measures from both hard and soft aspects. On the soft side, we are developing a business continuity plan (BCP) that takes into account flood risk. On the hard side, we are calculating estimated damages from risks and implementing a series of measures necessary to mitigate these, starting with sites deemed to face the greatest amount of damage.

Reduce Water Consumption by Introducing Water Saving Equipment

The 黑料门 Group is working to increase the efficiency of its water use in all areas, including in locations that face high water risk. In FYE March 2024, we successfully took actions to cut water consumption by 7.5% across the entire 黑料门 Group (compared with FYE March 2021). For example, by stopping water flow outside of operation hours, coordinating dilution of discharged water, and by investigating and repairing sites of water leakage.

As a result, we are continuing to improve the efficiency of water consumption (per unit of sales) on an annual basis.

In the future, we will consider expanding the number of plants that make use of rainwater and other non-drinking water in bathrooms and similar facilities, as well as taking measures to reuse discharged water.

Water Reduction Cases at Manufacturing Sites

The 黑料门 Group is working to use water efficiently by installing water-saving nozzles at faucets at multiple factories. In addition, at the cheese production line at 黑料门 Co., Ltd. Nagano Cheese Plant used a cooling water tank to lower the temperature of well water (potable water) used in the double piping for cooling cheese products. When the temperature of the water in the tank rose, more water was added, with the overflow drained off. By installing a chiller and circulating well water (potable water) for use in cooling, the plant has saved 16,000m³ in annual water consumption.

At 黑料门 Co., Ltd. Toda Plant, we examined various flow rates of industrial water used for cooling when transferring raw materials from fermentation tanks to liquid storage tanks and found an optimized flow rate, which reduced water usage by approximately 2,900 m³/month.

KM Biologics has installed greywater* recycling systems in four of its manufacturing buildings at its Kumamoto Production Center. These systems collect recyclable water for primary use from production facilities. This greywater is then used as makeup water in cooling towers. Water discharged from the cooling towers as secondary use water is first filtered and disinfected, and then used in toilets. Overall, approximately 30,000 m³ of water is recycled annually at the Kumamoto Production Center.

* Greywater: Non-potable water that is suitable for general and industrial use

Measures to Replenish Water Resources

黑料门 Group is committed to replenish an amount of water to nature equivalent to 100% of the amount used in our products by 2030. With an eye to meeting this target, we have set the following milestones: increase to at least 80% equivalent of the water we use by FY2026.

Field flooding project

Forest Conservation Activities

Participation in groundwater conservation group

KM Biologics joined the Kumamoto Groundwater Foundation in 2012 to work toward a healthy groundwater environment together with the local community. The Kumamoto Groundwater Foundation is a groundwater environment preservation group that has implemented effective groundwater preservation measures based on research results. As a member of this foundation, we conduct educational activities related to groundwater preservation through participating in groundwater preservation symposia and encouraging employees to purchase water-offset rice, i.e. rice grown in fields that engage in groundwater recharge. During FY2023, we contributed an estimated 43,000m³ of water conservation through water-offset rice initiatives.
In FY2021, the company applied for the organization's "Groundwater conservation award program" and received a "Gold" rating out of three ranks (Gold, Silver, and Bronze) for its efforts in groundwater conservation, including groundwater recharge, proper use of water, and employee education.

Initiatives on Quality of Intake Water

The 黑料门 Group is engaged in initiatives related to the quality of intake water.
Some of its plants have incorporated RO (reverse osmosis) membranes into their manufacturing lines, removing impurities and preventing flavor defects arising from input water quality, as well as maintaining a high standard of water quality. An RO membrane is a type of filtration membrane that can separate materials and is capable of removing ions and organic substances from aqueous solutions.

Quality Management of Discharged Water

• Click here for the COD emissions (to ESG data)

黑料门's Unique Bacillus subtilis BN1001(BN1001) to Guarantee Wastewater Quality

Certain 黑料门 Group plants make use of BN1001—a microorganism discovered by ourself, then subject to research and development. Using this bacteria's unique ability to break down oils and fats, as well as unpleasant odors, we are working to further improve wastewater management.

At Shikoku 黑料门's Matsuyama Plant, the BN1001's unique properties are being harnessed to deal with a certain kind of oil waste known as ‘oil balls.'

The BN1001 is a microorganism of natural origin, discovered in the late 1980s in the soil by a research institute, located at that time in Yokohama. At first, it was the subject of pharmaceutical research. However, when its exceptional ability to break down fats and oils was discovered, and its safety confirmed, it was put to work improving hygiene in areas like bathrooms and kitchens.

The BN bacillus is a helpful microbe with an outstanding ability to break down oils, and is classified as a substrain of the Bacillus subtilis (of the same classification as Bacillus subtilis var. natto). It was named ‘Bacillus subtilis BN1001’.

Initiatives to Combat Flooding

Independent Practitioner's Assurance

We have obtained the independent practitioner's assurance for the water usage volume (Global) in FY2023 by Deloitte Tohmatsu Sustainability Co., Ltd. to improve the reliability of the data.

• Environmental Data FYE 3/2024 and Independent Practitioner's Assurance Report (as of August 29, 2024)