kurita group environmental report 2016 · kurita group environmental report 2016 for the year ended...

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Kurita Water Industries Ltd. Nakano Central Park East, 10-1, Nakano 4-chome, Nakano-ku, Tokyo 164-0001, Japan Contact: Business Process Reengineering Department, Corporate Planning Division Tel.: 81 (3) 6743-5009 Fax: 81 (3) 3319-2037 For details of the Kurita Group’s environmental initiatives, please visit our website: http://www.kurita.co.jp/english/ Easy-to-read universal design fonts are used in this report.

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Kurita Water Industries Ltd.Nakano Central Park East, 10-1, Nakano 4-chome, Nakano-ku, Tokyo 164-0001, Japan

Contact:Business Process Reengineering Department, Corporate Planning DivisionTel.: 81 (3) 6743-5009 Fax: 81 (3) 3319-2037For details of the Kurita Group’s environmental initiatives,

please visit our website:

http://www.kurita.co.jp/english/Easy-to-read universal design fonts

are used in this report.

Kurita Group Environmental Report 2016For the Year Ended March 31, 2016

KURITA GROUP

2016ENVIRONMENTAL REPORT

Kurita Group Environmental Report 2016For the Year Ended March 31, 2016

KURITA GROUP

2016ENVIRONMENTAL REPORT

Purpose of PublicationWe have published this report to help our stakeholders have a deeper understanding of the Kurita Group’s environmental improvement activities. In the report, we disclose examples and results of our activities in line with the three aspects of technological innovation, customer needs and internal change and based on our Basic Environmental Improvement Policy. In creating this report, we referred to the Environmental Reporting Guidelines 2012 of the Japanese Ministry of the Environment. All of the product names listed in this report a reregistered trademarks or trademarks of the Kurita Group or other companies.

Organizations covered:Kurita Water Industries Ltd. and other domestic and overseas Kurita Group companiesCompany and other names are correct as of March 31, 2016.

Period covered:Fiscal 2016 (April 1, 2015 to March 31, 2016).The report also mentions some policies and targets set for April 2016 onwards.

Guidelines referred to:Environmental Reporting Guidelines 2012 (Ministry of the Environment)

—Approach to Environmental Improvement Activities—

The Kurita Group has adopted the Basic Environmental Improvement Policy

and Activity Guidelines based on its Corporate Philosophy.

INDEX

Information ......................................................................... 1

• Approach to Environmental Improvement Activities .......... 1

• Three Aspects of Environmental Improvement Activities ... 2

• Targets ............................................................................. 2

An interview with the President ........................................... 3

Environmental Benefits for Customers for FY 2016 ............. 5

Technological Innovation ..................................................... 7

Customer Needs ................................................................ 9

Internal Change ................................................................ 17

Initiatives in Environmental Improvement Activities Overseas ... 19

Communication ................................................................ 20

Company Information ....................................................... 21

Third-Party Opinion .......................................................... 22For further details, visit:

http://www.kurita.co.jp/environment/index.html

Editorial Policy

Activity Guidelines

In conducting daily business activities, we will reduce environmental impact through operational improvement and innovation.

3

We will work with customers to improve the environment by providing products, technologies, and services that boost productivity, reduce environmental impact and offer innovative energy solutions.

2

We will contribute to the realization of a sustainable society by developing new products and technologies conducive to environmental improvement.

1

CorporatePhilosophy

Study the properties of water, master them,

and we will create an environment in which

nature and man are in harmony.

BasicEnvironmentalImprovement

Policy

The Kurita Group will conduct business

activities based on its corporate philosophy

and will endeavor to solve water and

environmental issues with the aim of making

broad contributions to society.

KuRITA GROuP ENvIRONMENTAL REPORT 20161 Kurita Group Environmental Report 2016 2

Reduction of CO2 emissionsReduction of waste and water pollutants

Reduction of environmentally harmful substances

Results and Examples of Activities in Fiscal Year Ended March 2016Targets for Fiscal Year Ending March 2017

Energy creationImproved productivityReduction of environmental footprint☞See page 9

☞See page 7 ☞See page 17

The KuritaGroup’s

environmentalimprovement

activities

We pursue environmental improvement activities in three aspects: technological innovation,

customer needs and internal change.

—Three Aspects of Environmental Improvement Activities—

* The reference to one domed baseball stadium specifically envisions Tokyo Dome. On the assumption that Tokyo Dome has a capacity of 1.24 million m3, it is equivalent to 2,430 tons-CO2 given that CO2 weights 1.96 kg per cubic meter.

* On the assumption that the specific gravity of waste is 1.1, 1.36 million tons of waste is equivalent to the full capacity of one domed baseball stadium.

2014 2015 2016

(FY)

150

50

0

10058

4361

100

2014 2015 2016

6.0

2.0

0

4.0

1.2 1.42.3

5.0

2021(Cumulative

total)(Cumulative

total)(Cumulative

total)(Cumulative

total)

(FY)2021201620152014 201620152014

160

40

80

0

120

160

40

80

0

12082 90

103

150

68 76 84

136

Equivalent to422 times the

capacity ofone domed

baseball stadium

Equivalent to600 times the

capacity ofone domed

baseball stadium

Equivalent to60% of the fullcapacity of onedomed baseball

stadium

Equivalent tothe full capacityof one domed

baseball stadium

(Cumulativetotal)

(Cumulativetotal)

(Cumulativetotal)

(Cumulativetotal)

Equivalent to600 times the

capacity ofone domed

baseball stadium

Equivalent tothe full capacityof one domed

baseball stadium

1 Recent Trend and Target

(%)

Environmental benefits (in waste) for customers

in a single fiscal year

Internal environmental impact (in waste) in a

single fiscal year

Attaining a waste reduction factor of 5

Slogan

Subject

(Factor)

2014 2015 2016

(FY)

150

50

0

10058

4361

100

2014 2015 2016

6.0

2.0

0

4.0

1.2 1.42.3

5.0

2021(Cumulative

total)(Cumulative

total)(Cumulative

total)(Cumulative

total)

(FY)2021201620152014 201620152014

160

40

80

0

120

160

40

80

0

12082 90

103

150

68 76 84

136

Equivalent to422 times the

capacity ofone domed

baseball stadium

Equivalent to600 times the

capacity ofone domed

baseball stadium

Equivalent to60% of the fullcapacity of onedomed baseball

stadium

Equivalent tothe full capacityof one domed

baseball stadium

(Cumulativetotal)

(Cumulativetotal)

(Cumulativetotal)

(Cumulativetotal)

Equivalent to600 times the

capacity ofone domed

baseball stadium

Equivalent tothe full capacityof one domed

baseball stadium

2 Recent Trend and Target

Slogan

Subject

Environmental benefits for customers in waste

(cumulative total)

Reducing waste by the amount equivalent to the full capacity of

1domed baseball stadium(1.36 million tons)

(0,000 t)

2014 2015 2016

(FY)

150

50

0

10058

4361

100

2014 2015 2016

6.0

2.0

0

4.0

1.2 1.42.3

5.0

2021(Cumulative

total)(Cumulative

total)(Cumulative

total)(Cumulative

total)

(FY)2021201620152014 201620152014

160

40

80

0

120

160

40

80

0

12082 90

103

150

68 76 84

136

Equivalent to422 times the

capacity ofone domed

baseball stadium

Equivalent to600 times the

capacity ofone domed

baseball stadium

Equivalent to60% of the fullcapacity of onedomed baseball

stadium

Equivalent tothe full capacityof one domed

baseball stadium

(Cumulativetotal)

(Cumulativetotal)

(Cumulativetotal)

(Cumulativetotal)

Equivalent to600 times the

capacity ofone domed

baseball stadium

Equivalent tothe full capacityof one domed

baseball stadium

2 Recent Trend and Target

Slogan

Subject

Environmental benefits (in CO2) for customers

(cumulative total)

Reducing CO2 emissions by

600 times the capacity of one domed baseball stadium(1.5 million tons-CO2)

(0,000 t-CO2)

2014 2015 2016

(FY)

150

50

0

10058

4361

100

2014 2015 2016

6.0

2.0

0

4.0

1.2 1.42.3

5.0

2021(Cumulative

total)(Cumulative

total)(Cumulative

total)(Cumulative

total)

(FY)2021201620152014 201620152014

160

40

80

0

120

160

40

80

0

12082 90

103

150

68 76 84

136

Equivalent to422 times the

capacity ofone domed

baseball stadium

Equivalent to600 times the

capacity ofone domed

baseball stadium

Equivalent to60% of the fullcapacity of onedomed baseball

stadium

Equivalent tothe full capacityof one domed

baseball stadium

(Cumulativetotal)

(Cumulativetotal)

(Cumulativetotal)

(Cumulativetotal)

Equivalent to600 times the

capacity ofone domed

baseball stadium

Equivalent tothe full capacityof one domed

baseball stadium

CO2 Waste

1 Recent Trend and Target

Environmental benefits (in CO2) for customers in

a single fiscal year(%)

Internal environmental impact (in CO2) in a single fiscal year

100% environmental independence

Slogan

Subject

(%)

CustomerNeeds

The Kurita Group is engaged in environmental improvement activities under the following slogans,

to expand environmental benefits for customers and reduce its internal environmental impact.

—Targets—

TechnologicalInnovation

InternalChange

KuRITA GROuP ENvIRONMENTAL REPORT 20161 Kurita Group Environmental Report 2016 2

Information

An interview

with the P

resident

Environm

ental Benefits for

Custom

ers for FY 2016

Technological InnovationC

ustomer N

eeds

Internal Change

Topics/C

omm

unicationC

omp

any Information/

Third-P

arty Op

inion

targets through a system that relies on scientific evidence. However, I feel that Japanese companies view this agreement differently from companies in the rest of the world. In Europe, governments are trying to make reductions more effectively by incorporating reduction activities into the economic system in the form of carbon trading that monetizes carbon, environmental taxes and suchlike. Also, the goal of keeping the global temperature rise to less than 2°C above pre-industrial levels puts restrictions on the use of coal and petroleum, which contain carbon, and is a big risk for companies that already have natural resources as assets on their balance sheets. Since the establishment of such mechanisms is an advantage in some industries and a disadvantage in others, Western companies are acutely interested in the extent of the impact of CO2 reductions on their operations. In Japan on the other hand, the government is merely getting industry groups to consider efforts to reduce emissions, and I feel that interest among Japanese companies is generally weak.

Advent of an era where “environmental contribution” is directly linked to the enhancement of corporate value

Kadota: I feel there have been major advances in international frameworks relating to the environment in recent years. At the end of last year, the Paris Agreement, was ratified at COP21*. This was the first time all members of the united Nations, including developing countries, agreed to control global warming pollution. The Paris Agreement set a common goal of keeping the global temperature rise to less than 2°C above pre-industrial levels. It also requires each country to take measures to achieve their voluntary carbon emissions reduction targets, which must be reviewed every five years. I wonder what impact this will have on companies.Kokubu: COP21 is a huge achievement both as an international framework accepted by all member countries of the uN and because member countries agreed to try to meet specific reduction

Professor Katsuhiko Kokubu, an expert in environmental management, interviews Kurita Water Industries president Michiya Kadota, asking how the Kurita Group, which conducts business in the field of water and the environment, views the expectations of society, amid the rapidly increasing importance of global environmental issues and major advances in international frameworks, and how the Kurita Group plans to expand business as a global corporation.

Professor, Graduate School of Business Administration, Kobe university

Katsuhiko KokubuPresident, Kurita Water Industries Ltd.

Michiya Kadota

An interview with the President

*COP21: 21st session of the Conference of the Parties to the united Nations Framework Convention on Climate Change (uNFCCC) held in Paris, France at the end of November 2015. COP stands for Conference of the Parties and is a conference of countries that have ratified the uNFCCC. COP3 was the 3rd session of the Conference of the Parties to the uNFCCC held at Kyoto, Japan in 1997, and it ratified the Kyoto Protocol.

The Kurita Group will strive to enhance the corporate value of customers

and rapidly grow into a truly global company.

KuRITA GROuP ENvIRONMENTAL REPORT 20163 Kurita Group Environmental Report 2016 4

Katsuhiko KokubuProfessor, Graduate School of Business Administration, Kobe university. Appointed Dean of the Graduate School in 2014 to 2016.Earned a Ph.D. in Business Administration from Osaka City university.He has served on many various governmental committees, including chair of the Committee for Research on Promotion of Development of Environmental Business and for Environmental Accounting appointed by the Ministry of Economy, Trade and Industry, and member of the Working Group for the Revision of the Environmental Accounting Guidelines for the Ministry of the Environment. He also chairs ISO/TC207/WG8. Professor Kokubu is a leading global expert in environmental management and accounting and in CSR management.

Kadota: Indeed, Western companies know well the significance of the incorporation of CO2 reductions into the economic system and are starting to prepare for this. We know that, with companies becoming more sensitive about CO2 issues globally, the companies that grasp the situation and are quick to respond are the ones that will survive global competition.Kokubu: The world is moving in the direction whereby spelling out more clearly the contribution a company makes to reducing CO2 emissions can help to enhance its corporate value. I believe companies will start attaching importance to specifying numerically the benefits of reductions instead of talking about abstract reduction efforts.Kadota: I see this a brilliant strategic opportunity for the Kurita Group, which conducts business in the field of water and the environment, in the sense that CO2 reductions achieved through our products and services will help enhance the corporate value of customers and enable them to show the benefits of reductions quantitatively. I believe that water-related issues also need to be kept under close scrutiny as global trends relating to the environment. What do you think?Kokubu: As the effective use of water also starts to be incorporated into the economic system in the same way as CO2 reductions, the question of whether companies are taking proper action to ensure effective use of water is becoming important. unlike CO2, water is a local as well as a global issue. Action taken to conserve water differs according to the location in which water is used, but investors that attach importance to social responsibility scrutinize the policies of global companies on the effective use of water to see whether action is taken based on a consistent Group policy, regardless of country.Kadota: It is clear from our conversation thus far that failure to sufficiently reduce CO2 or use water effectively can negatively affect corporate value and pose a risk to operations. I believe the world is heading in the direction where activities to reduce environmental impact are starting to be positioned at the center of activities to enhance corporate value, and that companies have no choice but to focus on CO2 reductions and effective use of water across the entire value chain, including all plants, as well as customers and suppliers. Last fiscal year, we helped customers adopt dry methane fermentation systems and cooling water blow-down recovery systems combining water treatment chemicals and the technologies of water treatment facilities. I would like to use these unique products not simply to make proposals based solely on the benefits of reducing environmental impact but to evaluate whether the corporate activities of our customers include processes that could help reduce CO2 emissions or water usage and to spell out more clearly how much this could contribute to the enhancement of corporate value.Kokubu: The data that shows contribution to enhancement of corporate value in quantitative terms is, of course, the environmental benefits for customers in your environmental report. I believe Kurita was visionary in coming up with this value from an early stage. I believe this is not just a value for shareholders and investors but also

an opportunity for business expansion through the creation of a value for society, not just a value for shareholders and investors.

Becoming a truly global company in the environmental management

Kadota: At the end of January 2015, we acquired the water treatment chemicals business and other businesses of the Germany-based BK Giulini GmbH and its affiliates, strengthening our overseas business platform mainly in Europe. Last fiscal year, we launched the ultrapure water supply business for local companies in South Korea, which is the first of its kind. As a result, the Kurita Group’s overseas sales ratio rose sharply from 21% in the fiscal year ended March 31, 2015 to 30% in the fiscal year ended March 31, 2016. I feel that from the viewpoints of E (Environment), S (Society), and G (Governance), the Kurita Group also needs to become a global company in every respect.Kokubu: The international community is seeking to develop standards for linking the environment to some kind of economic value. As part of information disclosure, in their integrated reports, companies are required to consider the environment as a type of capital, understand the relationship between the environment and their products and services, and explain how this will lead to the creation of value in the long term. ISO14001 has also been revised to improve the link to business strategy, normalizing a system in which reducing the environmental impact will enhance corporate value and reduce business risk. For global companies, taking action in accordance with global environmental standards will become increasingly important in the future.Kadota: To fulfil its social responsibility and meet expectations as a global company, the Kurita Group must establish systems that conform to global standards from the perspectives of E, S and G, make continuous improvements through the PDCA cycle, and disclose the results of these activities. Since the “Environment” is a universal theme that applies to everyone regardless of culture or background, I intend to set out a Group approach and policy that are as simple and easy to understand as possible. We are also a group of people with a strong desire to contribute to society through water and the environment. I want to ensure that each of our employees is able to achieve a real sense of contributing to the global environment through our business activities. To this end, it is important for employees to gain a higher vantage point until they can see the kind of frameworks that are shaping global trends in relation to the environment and understand the issues and risks they are facing. As president, I intend to reposition our businesses and reassess where our mission as a company lies, thus clarifying the nature of the contribution Kurita should make and communicating this to the Group as whole.

KuRITA GROuP ENvIRONMENTAL REPORT 20163 Kurita Group Environmental Report 2016 4

Information

An interview

with the P

resident

Information

An interview

with the P

resident

Environm

ental Benefits for

Custom

ers for FY 2016

Technological InnovationC

ustomer N

eeds

Internal Change

Topics/C

omm

unicationC

omp

any Information/

Third-P

arty Op

inion

81 81 81 81

120

60

90

30

0 2014 2015(FY)

2016 2014 2015(FY)

2016

60

80

40

20

0 2014 2015(FY)

2016

3,000

1,000

2,000

0 2014 2015(FY)

2016 2014 2015(FY)

2016

300

400

200

100

0 2014 2015(FY)

2016

200

300

10,000

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30,000

10,000

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0

30,000100 500 400

100

0 2014 2015(FY)

2016

106

81

11626,860

12,257

28,063

60

7976

785 696

2,385

20,512

25,35323,032 395 410

467

135

358

20

81 81 81 81

120

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0 2014 2015(FY)

2016 2014 2015(FY)

2016

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0 2014 2015(FY)

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0 2014 2015(FY)

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30,000100 500 400

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0 2014 2015(FY)

2016

106

81

11626,860

12,257

28,063

60

7976

785 696

2,385

20,512

25,35323,032 395 410

467

135

358

20

81 81 81 81

120

60

90

30

0 2014 2015(FY)

2016 2014 2015(FY)

2016

60

80

40

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0 2014 2015(FY)

2016

3,000

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0 2014 2015(FY)

2016 2014 2015(FY)

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300

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0 2014 2015(FY)

2016

200

300

10,000

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0

30,000100 500 400

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0 2014 2015(FY)

2016

106

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11626,860

12,257

28,063

60

7976

785 696

2,385

20,512

25,35323,032 395 410

467

135

358

20

81 81 81 81

120

60

90

30

0 2014 2015(FY)

2016 2014 2015(FY)

2016

60

80

40

20

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2016

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0 2014 2015(FY)

2016 2014 2015(FY)

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0 2014 2015(FY)

2016

200

300

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20,000

0

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10,000

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0

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2016

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11626,860

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60

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785 696

2,385

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25,35323,032 395 410

467

135

358

20

The Kurita Group identifies the reductions in environmental impact attained with the improvements proposed to and

adopted by customers as its original indicator under the name environmental benefits for customers.

For orders received in the one-year period from April 2015 to March 2016, environmental benefits for customers for FY2016

are quantified by estimating the environmental reductions before and after the introduction of the improvement presented in

the written specifications and proposals to customers at the time of receiving orders.

We have achieved results together with customers.

Environmental Benefits for Customers for FY 2016

Environmental Benefits for Customers

Removal of hazardous substances by the use of heavy metal stabilizers, and reduction in the use of chemicals through replacement with a regeneration type demineralizer

Reduction of environmentally harmful substances

tons per year2,385

Reduction of sludge with the use of dehydration agents and anaerobic wastewater treatment facilities, and waste reduction with the introduction of drying machines

Waste reduction

tons per year78,840(tons per year)On average, a single

household generates about 1,400 kg of waste*4 per year.The waste reduction of 78,840 tons is therefore equivalent to the total amount of waste generated by about 56,300 households in one year.

(000 tons per year)

Fuel and electric power consumption cuts with the use of water treatment chemicals for boilers and cooling facilities, and water conservation with the use of wastewater reclamation systems

CO2 emissions reduction

t-CO2 per year*1

116,136 ,000 m3 per year28,063Water savings

On average, a single household emits about 4,760 kg*2 of CO2 per year. The emissions reduction of 116,136 tons is therefore equivalent to the total amount of CO2 emitted by about 24,400 households in one year.

(000 t-CO2 per year) On average, a single household consumes about 300 m3 *3 of water per year.A 28,063,000 m3 saving of water is therefore equivalent to the total amount of water consumed by about 93,500 households in one year.

(000 m3 per year)

KuRITA GROuP ENvIRONMENTAL REPORT 20165 Kurita Group Environmental Report 2016 6

81 81 81 81

120

60

90

30

0 2014 2015(FY)

2016 2014 2015(FY)

2016

60

80

40

20

0 2014 2015(FY)

2016

3,000

1,000

2,000

0 2014 2015(FY)

2016 2014 2015(FY)

2016

300

400

200

100

0 2014 2015(FY)

2016

200

300

10,000

20,000

0

30,000

10,000

20,000

0

30,000100 500 400

100

0 2014 2015(FY)

2016

106

81

11626,860

12,257

28,063

60

7976

785 696

2,385

20,512

25,35323,032 395 410

467

135

358

20

81 81 81 81

120

60

90

30

0 2014 2015(FY)

2016 2014 2015(FY)

2016

60

80

40

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0 2014 2015(FY)

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0 2014 2015(FY)

2016 2014 2015(FY)

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0 2014 2015(FY)

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60

7976

785 696

2,385

20,512

25,35323,032 395 410

467

135

358

20

81 81 81 81

120

60

90

30

0 2014 2015(FY)

2016 2014 2015(FY)

2016

60

80

40

20

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0 2014 2015(FY)

2016 2014 2015(FY)

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300

10,000

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0

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2016

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12,257

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60

7976

785 696

2,385

20,512

25,35323,032 395 410

467

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358

20

Environmental Benefits for Customers

*1. CO2 emission factors used for the calculations: electricity: (0.570 kg-CO2/kWh for customers in Japan, 0.734 kg-CO2/kWh for customers in China, 0.583 kg-CO2/kWh for customers in Taiwan), city gas: 2.23 kg-CO2/m3, Class-A heavy oil: 2.71 kg-CO2/l, tap water and sewage water: 0.65 kg-CO2/m3. The conversion factor used for electricity for customers in Japan is the one in the “Environmental Action Plan of Electric Power Companies” that was announced by the Federation of Electric Power Companies of Japan in September 2014. Reduced CO2 emissions attributable to water conservation is also included.

*2. According to data on CO2 emissions from households provided by the Japan Center for Climate Change Actions

*3. Calculated based on the average water consumption per month at four-person households, which is shown in a document on tips to save water from the Bureau of Waterworks, Tokyo Metropolitan Government

*4. Amount of waste generated by a household of four members, which is calculated based on per-capita waste generation shown in the Annual Report on the Environment, the Sound Material-Cycle Society and the Biodiversity in Japan 2016 (released by the Japanese Ministry of the Environment)

Exhaust gas including odorous components treated with catalytic cracker

Air pollutant treatment

Nm³ per year20(Nm3 per year)

Reduction in the amount of wastewater treated by wastewater treatment systems

Wastewater treatment

,000 m3 per year25,353

Reduction in the volume of contaminated soil and groundwater removed by excavation or treated by in-situ purification

Remediation of contaminated soil

,000 m3 per year410The standard size of a swimming pool is 50 m long, 20 m wide, and 1.7 m deep, and its volume is 1,700 m3.The 25,353,000 m3 of wastewater treated is therefore equivalent to the volume of water from about 14,900 swimming pools.

(000 m3 per year) The remediation of 410,000 m3 of contaminated soil (1 m3 of soil weighs 1.8 tons) is equivalent to about 73,800 10-ton truckloads.

(000 m3 per year)

KuRITA GROuP ENvIRONMENTAL REPORT 20165 Kurita Group Environmental Report 2016 6

An interview

with the P

resident

Technological InnovationC

ustomer N

eeds

Internal Change

Topics/C

omm

unicationC

omp

any Information/

Third-P

arty Op

inionInform

ationE

nvironmental B

enefits for C

ustomers for FY

2016

1.A water supply unit and water treatment management system for low-pressure boilers to help reduce CO2 emissions

For the many low-pressure boilers installed at the plants of customers in Japan and overseas, Kurita has developed an energy-saving water supply device that uses an ultra-low pressure RO membrane to remove hardness (scale), chemicals to prevent small amounts of scale in the water supply from sticking to the boiler, and a water treatment management system that controls this device and chemicals with water treatment sensors. By combining these technologies, the product helps solve various issues surrounding boilers, including reducing boiler fuel costs and blow water, improving problems with steam and condensate return systems, and optimizing use of water treatment chemicals.

New products and technologiesImprovement targets

CO2 Waste Environmentallyharmful substances Water pollutants

Water supply unit and water treatment control system for low pressure boiler

Automatic controlling system for dosing chemicals to incinerator fly ash

Chemicals for cleaning RO membrane used in electronics factories

High-turbidity water membrane system, Scale dispersion agents and COD digester for wastewater reclamation

New products and technologies developed to contribute to environmental improvement

We are committed to creating new products and technologies that help solve problems related to water and the environment.

The Kurita Group is working to develop new products and technologies that help improve the environment and contribute

to creating a sustainable society.

The following are examples of our new products and technologies:

Technological Innovation

Kurita has received an order from Japan Aerospace Exploration Agency (JAXA)

for the manufacture of a flight model of the company’s next generation water

recycling and demonstration system. This system is scheduled to be installed in

the Japanese Experiment Module “Kibo” on the International Space Station (ISS).

The system consists of a control system and a water treatment system made

up of ion exchange units, electrolysis units and electrodialysis units. It recycles

water at a higher level (a water recycling rate of 85% or more) than the water

recycling systems currently used on the ISS. It also consumes about one-half of

the power and is one-quarter the size and weight of the current systems. Another

added benefit of the new system is that it does not require any maintenance. The

regeneration of ion exchange resins is self-contained inside the system, and there

is no need to replace the resins. Kurita plans to apply this technology, honed in the

cutting-edge field of space technology development, to the environment field.

Received order from JAXA for Next Generation Water Recycling and Demonstration System to be installed in the Japanese Experiment Module “Kibo” on the International Space Station

Boiler chemicals with dual functions of

preventing scale buildup and removing scale.

Energy-saving RO membrane device

Water treatment management agreement

for verifying energy-saving benefits

Water treatment sensors and control equipment for remotely monitoring water

treatment status

Solving various issues with steam

and condensate return systems,

including reducing CO2 emissions.

Treatment method (system flow)

Concentrate water

Electrodialysis

Alkali Acid

TreatedwaterUrine

Waste liquid

Ion exchange

HydrogenCarbon dioxide

Gas-liquidseparationmembrane

Electrolysis

Products and technologies marketed overseas

TOPICS

KuRITA GROuP ENvIRONMENTAL REPORT 20167 Kurita Group Environmental Report 2016 8

2.A system that uses dry methane fermentation technology to break down organic waste contained in refuse for incineration and recovers biogas to help reduce CO2 and waste.usually, much of the organic waste contained in food waste, burnable waste, etc. is simply incinerated. Kurita has developed a dry methane fermentation system that recovers biogas (methane) through the methane fermentation of solid organic waste using microorganisms. The introduction of this system prior to incineration reduces the amount of waste (fermentation residue) that is incinerated, and the recovered biogas can also be reused as a source of energy. The system has the advantage that because it performs direct fermentation of solid contents, the fermentation residue has a low water content and no dewatering system is required to recycle residue by making it into compost or turning into carbon, etc.

3.An automatic injection control system that reduces the amount of chemicals used to treat heavy metals contained in incinerator fly ash

Since fly ash collected from combustion gases in dust collectors contains toxic heavy metals such as lead, waste incineration facilities in Japan use chemicals to harden heavy metals in fly ash to prevent them from eluting. Since the composition of incinerated waste varies and the amount of heavy metals contained in fly ash also changes, workers used to collect samples of fly ash for analysis and adjust the dose of heavy metal treatment chemicals. Kurita has developed a system that automates the entire process from fly ash sampling to analysis and dosing control. This system not only makes it possible to control dosing according to fluctuations in the heavy metals content of fly ash to maintain stable treatment quality but also helps reduce the amount of chemicals used.

New products and technologiesImprovement targets

CO2 Waste Environmentallyharmful substances Water pollutants

Coagulation-sedimentation unit for a large volume of water with high levels of suspended solids

Tower-type wastewater treatment system using the aerobic granules technology

Software and Simulation Model of biological treatment of complex wastewater to support utility cost estimation

Dry methane fermentation process for private industrial waste-disposal industries

Kurita’s low sludge generation type aerobic biological treatment process BIOPLANET SRTM has received

the METI Industrial Technology Environmental Agency Director General’s Award at the 42nd Excellent

Environmental Equipment Awards hosted by the Japan Society of Industrial Machinery Manufacturers

(JSIM). This process enables a reduction in the amount of sludge generated by up to 75% compared to

the standard aerobic biological treatment process used to treat the wastewater of plants, etc. It received

the award in recognition of the fact that it practically applies low environmental impact technology that

reduces the amount of sludge generated and has reduced the environmental impact at domestic and

international worksites. Kurita will continue pursuing the topic of how to reduce excess sludge, and

will further promote measures for solving customers’ problems concerning water and the environment,

while helping reduce the environmental impact through the development of unique biological treatment

technologies.

Kurita’s sludge reduction type aerobic biological treatment process BIOPLANET SRTM receives METI Industrial Technology Environmental Agency Director-General’s Award

* Please note that the new products and technologies highlighted in this report may not be handled in countries or regions other than Japan.

Incineration facilities

RecyclingDewatering

Food waste

Wood waste

Burnable waste

Previous flow

Incineration facilities

Recycling

Food waste

Wood waste

Burnable waste

New flow

Biogas

Dry methane fermentation

systemFermentation residue

Mixer Treated ash

Control

Fly ash treatment agent

Analysis and measurementcontrol part

Analysis

ChimneyFlue

Waste

Incinerator

Fly ash silo

Dust collector

P

Measuringtank

Automatic incineration fly

ash sampling partSampling

KuRITA GROuP ENvIRONMENTAL REPORT 20167 Kurita Group Environmental Report 2016 8

Information

An interview

with the P

resident

Environm

ental Benefits for

Custom

ers for FY 2016

Technological InnovationC

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Internal Change

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Improved productivity

Energy creation

Reduction ofenvironmental impact

Customers

Solutions based onwater treatment

Water treatment chemicals Water treatment facilities

Maintenance services, operation management, etc.

■ Boiler water treatment chemicals

■ Wastewater treatment chemicals

■ Contract-type products

■ Water quality analysis

■Cooling water treatment chemicals

■ Process treatment chemicals

■ Chemical injection equipment etc.

■ Ultrapure water production systems■ Water treatment systems■ Wastewater treatment systems■ Wastewater reclamation systems

etc.

■ Maintenance services

■ Ultrapure water supply business

■Tool cleaning services

■ Soil and groundwater remediation

■ Chemical cleaning

■ Boiler facilities

Building of a sustainable societyRealization of a sustainable society

A distinctive business portfolioA distinctive business portfolio

The Kurita Group operates globally with a well-balanced business portfoliofocused on three areas: water treatment chemicals,water treatment facilities and maintenance services.

The Kurita Group operates globally with a well-balanced business portfoliofocused on three areas: water treatment chemicals,water treatment facilities and maintenance services.

With a focus on higher productivity, lower environmental impacts and energy creation, Kurita Water Industries is proactive

in offering its products, technologies and services. The following demonstrates examples of different solutions involving

water and the environment achieved in partnership with customers.

Kurita Water Industries helps customers achieve environmental improvements by offering them products, technologies and services.

KuRITA GROuP ENvIRONMENTAL REPORT 20169 Kurita Group Environmental Report 2016 10

Customer Needs

Manufacturing functional precision porous material such as PvA sponge,

AION Co., Ltd.’s Kanto Plant strives to reduce the environmental impact

of business activities in accordance with its environmental policy.

In the wastewater treatment process, organic matter is broken down by

microorganisms in the aeration tank. A constant oxygen concentration

must be maintained to maximize the health of the microorganisms. The

task was to reduce the power consumption of the blower that supplies

the oxygen.

Kurita Water Industries’ Facilities Division proposed changing to a fine

bubble air diffuser with a higher oxygen transfer rate than the existing air

diffuser.

The adoption of this proposal made it possible to reduce the power

consumption of the blower, delivering an annual reduction in power

consumption of 12% from the previous level.

Solution

Task

Case 1 Kanto Plant, AION Co., Ltd.

Electric power consumption reduced by 12%

1 Reduction of electric power consumption of wastewater treatment process

2 Improvement of aeration efficiency and durability of air diffuser

Improvement of oxygen transfer efficiency through optimization of air

diffuser

The proposal matched our requirements

and so we used the actual machine to

assess the benefits and adopted the

proposal. We await more cost-cutting

proposals and demonstration of the

durability and energy-saving benefits of the

air diffuser in the future.

Customer’s Voice

Center/Mr. Hisao Nakayama, Director for Development and Production

Right/Mr. Yasuo Kawamura, Chief of Equipment Section, Engineering Department

Left/Mr. Masao Yamamoto, Equipment Section (Environment), Engineering Department

Wastewater

Equalizing tank Moving bed tank

Aeration tank

Sedimentation tank

Discharged afterpost-treatment

process

Sludge

Fine bubble air diffuser

Neutralization tank

Flow chart

Mr. Tadashi Matsumura, Engineering Section

We appreciate that, after adoption of

the proposal, we continued to maintain

discharge standards that are stricter than

usual, set in consultation with the municipal

authorities. We also appreciate the fact

that this has helped reduce the wastewater

management workload. We await more

proposals that will lead to further reduction

in the cost of the wastewater treatment

process and optimization of the entire

process in the future.

Customer’s Voice

Manufacturing various fish-paste products such as kamaboko, Ichimasa

Kamaboko Co., Ltd.’s head office/plant strives to reduce environmental

impact of business activities.

In the wastewater treatment process, organic matter is broken down

by microorganisms in the aeration tank, and water is separated from

suspended solids in the sedimentation tank downstream. The task was

to respond to the increase in wastewater volume and fluctuation in

wastewater loads resulting from increased production volume.

Kurita Water Industries’ Facilities Division proposed reinforcement of

filters based on the assessment that the focus of reinforcement of

wastewater treatment system should be the increased concentration of

suspended solids and not the response to BOD loads.

The adoption of this proposal made it possible to increase annual sludge

treatment capacity by 146,000 m3.

Solution

TaskIncrease in wastewater treatment volume as a result of increased

production

Identification of focus of reinforcement of wastewater treatment

facilities and optimization of water treatment facilities

Case 2Head office/plant, Ichimasa Kamaboko Co., Ltd.

Flow chart

Filtration

Wastewater

Discharge

Aeration tank

Sedimentation tank

Sludge

Sludge

Proposal

Reinforced filter

Annual sludge treatment capacity increased by

146,000 m3

KuRITA GROuP ENvIRONMENTAL REPORT 20169 Kurita Group Environmental Report 2016 10

Information

An interview

with the P

resident

Environm

ental Benefits for

Custom

ers for FY 2016

Technological InnovationC

ustomer N

eeds

Internal Change

Topics/C

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unicationC

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any Information/

Third-P

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inion

Information

An interview

with the P

resident

Environm

ental Benefits for

Custom

ers for FY 2016

Technological InnovationC

ustomer N

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Internal Change

Topics/C

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Mr. Yuichi Sato, Engineering Section, Production Engineering Department

We appreciate that Kurita teamed up

with a boiler manufacturer and proposed

boiler facilities which best matched plant

operating conditions and that this reduced

workload in terms of boiler operation

management. We await future versatile and

attentive follow-up services and proposals

for further CO2 emission reductions and

energy savings.

Customer’s Voice

Manufacturing various products made from corn such as cornstarch and

processed starch, Shikishima Starch Mfg. Co., Ltd. strives to reduce

environmental impact of business activities in accordance with the

environmental policy of the Showa Sangyo Group.

The customer formerly used a heavy oil fired boiler for supplying steam

used in the manufacturing process. It faced issue of cutting CO2

emissions.

Kurita BMS Co., Ltd. and Kurita Chemicals Tokai Ltd. proposed

gasification of boiler fuel and boiler facilities capable of proportional

combustion control according to fluctuations in steam loads associated

with production.

Adoption of this proposal enabled supply of steam in accordance with

operation and helped reduce CO2 emissions by 30% compared with

previous heavy oil fired boiler.

Solution

Task Reduction of CO2 emissions

Fuel gasification/Updating of existing heavy oil fired boiler/Boiler

capable of proportional combustion control in line with steam load

fluctuation

Case 3 Shikishima Starch Mfg. Co., Ltd.

Boiler

CO2 emissions reduced by 30%

We approve highly of the improved stability

of the machinery, energy saving, safety

in management and operational aspects,

and of Kurita Water Industries’ speedy

response and technological capabilities.

In the future we are hoping for a further

acceleration on the engineering front, and

for the introduction of new products and

new technologies.

Customer’s Voice

In manufacturing DRAM and other semiconductor memory devices,

Micron Memory Taiwan Co., Ltd. strives to reduce environmental impact

and pay care and consideration for safety, based on its environmental

and safety policies.

The customer needed to achieve compliance with new regulations on

ammonia nitrogen contained in discharged water.

At Kurita Water Industries, the Facilities Division proposed air stripping

and water treatment facilities based on the catalytic combustion method.

using neither gas nor fuel, air stripping is said to be very safe and to be

capable of recovering heat with high efficiency.

Adoption of the proposal enabled compliance with regulations on

discharged water quality as well as energy saving benefits and safe

operation management.

Solution

Task

1 Compliance with new regulations on ammonia nitrogen contained in discharged water

2 Energy conservation and improved safety

Air stripping and removal of ammonia nitrogen by the catalytic

combustion method

Case 4 Micron Memory Taiwan Co., Ltd.

Mr. Kenny Chang Sr. Facility Water Treatment Engineer Water treatment, Water & Gas Chemical

Achieve compliance with new regulations on

ammonia nitrogen contained in discharged water

Flow chart

Ammonia nitrogen removal tower

Heat recovery unit

Electric heater

Wastewater (containing ammonium ions)

Air

Exhaust

Treated water (to be discharged)

P

F

F

Heat recovery unit

Catalytic reactorHeat

recovery

Heat recovery

Contactbed

Ammonia nitrogen

Fan

Fan

P

Customer Needs

KuRITA GROuP ENvIRONMENTAL REPORT 201611 Kurita Group Environmental Report 2016 12

Manufacturing mainly fluorochemical products, air conditioners and

chillers and hydraulic equipment, Daikin Industries, Ltd.’s Yodogawa Plant

helps reduce the environmental impact of production, including cuts in

GHG emissions and a reduction in waste and water in accordance with

the Group Basic Environmental Policy.

The ultrapure water used in production processes is made with an

ultrapure water production system including an RO membrane and ion

exchange resin. The uses of ultrapure water have changed from the

time when the ultrapure water production system was installed and

the amount of ultrapure water used has also decreased significantly,

creating overcapacity, and the task was to reduce utilities including power

consumption during operation.

Kurita Water Industries’ Facilities Division proposed optimization of the

ultrapure water production system through downsizing.

Adoption of this proposal reduced annual power consumption by 90%

compared with the previous level.

Solution

Task Reduction of overuse of utilities for ultrapure water production system

Optimization of ultrapure water production system through downsizing

Case 5Yodogawa Plant, Daikin Industries, Ltd.

Electric power consumption reduced by 90%

We appreciate that we received a

proposal quantifying current cost loss,

the maintenance of water quality after

adoption, and cost merits commensurate

with our investment. We await proposals

that will help further improve quality, as

water of even greater purity will be required

in the future.

Customer’s Voice

Left/Mr. Osamu Watanabe, Supervisor, No. 1 Section, Chemicals Production Department, Chemicals Division

Center/Mr. Yusuke Ohishi, Foreman, No. 1 Section, Chemicals Production Department, Chemicals Division

Right/Mr. Yasuyuki Dote, Facilities Management Group, Engineering Department, Chemicals Division

Regularly collecting and cleaning products such as mops and mats,

Duskin Product Higashi Kanto Co., Ltd.’s Chibahigashi Plant strives to

reduce the environmental impact of plant operations in accordance with

the Duskin Environmental Policy.

In the waste water treatment process, aluminum sulfate was used as an

inorganic coagulant to facilitate agglomeration of suspended solids in

wastewater and separation from water. However, the fact that the odor

from this chemical could be smelt in the area surrounding the plant and

inside the plant was an issue.

Kurita Chemicals Kantou Ltd. proposed reducing chemicals consumption

by optimizing wastewater treatment chemicals, including changing

the inorganic coagulant for a chemical consisting mainly of aluminum

chloride.

Adoption of this proposal made it possible to resolve the issue of the bad

odor and reduce consumption of inorganic coagulant by 40% from the

previous level.

Solution

Task Reduction of odor from aluminum sulfate

Odor control through optimization of wastewater treatment chemicals

and reduction of chemicals consumption

Case 6Chibahigashi Plant, Duskin Product Higashi Kanto Co., Ltd.

Decolorant (organic coagulant) Poly-electrolyte

Reaction tank Coagulation reaction tankPressure tank

pH meter

Aluminum chloride on/off control

Change from aluminum sulfate

Change of injection point

Raw water

Inverter control

Inverter

Previous

injection point

Discharge

Recycled water(to cleaning processes)

We appreciate that Kurita put together

radical measures to address the

cause of the odor rather than just a

stopgap measure, made detailed data

measurements and demonstrated the

benefits to us in actual equipment tests.

We intend to roll this out to plants

nationwide because the odor control,

etc. was very effective. We would like

continued help promoting introduction in

close cooperation with the shop floor staff

at each of our plants.

Customer’s Voice

Mr. Takashi Maki, Chief of Manufacturing Technology Office, Manufacturing Department, Production Headquarters, Duskin Co., Ltd.

Duskin Product Higashi Kanto Co., Ltd. Left/Mr. Junichi Teramura, Director and Plant Manager

Right/Mr. Yoshiaki Ooki, General Manager, Manufacturing Department

Chemicals consumption reduced by 40%

New ultrapure water production system

Old ultrapure water production system

Downsizing

Flow chart

KuRITA GROuP ENvIRONMENTAL REPORT 201611 Kurita Group Environmental Report 2016 12

Information

An interview

with the P

resident

Environm

ental Benefits for

Custom

ers for FY 2016

Technological InnovationC

ustomer N

eeds

Internal Change

Topics/C

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unicationC

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any Information/

Third-P

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Information

An interview

with the P

resident

Environm

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Custom

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Technological InnovationC

ustomer N

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Internal Change

Topics/C

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Left/Mr. K. L. Pan, Manager, Operation Department II

Right/Mr. Hsieh Kun-Fu, General Foreman, Operation Department II

The system was effective in reducing

inorganic coagulant, reducing sludge

generation, and stabilizing treated water

quality. We are awaiting future proposals

based on advanced technologies that will

help reduce costs.

Customer’s Voice

In charge of managing the water treatment facilities of Dragon Steel

Corporation, which produces various steel products such as H sections,

flat bars and hot-rolled steel, China Ecotek Corporation strives to reduce

the environmental impact of its business activities in according with its

environmental policy.

In the waste water treatment process, aluminum chloride was used as

an inorganic coagulant to facilitate agglomeration of suspended solids

in wastewater and separation from water. The task was to reduce

consumption of this chemicals, reduce generation of sludge and stabilize

treated water quality.

Kurita (Taiwan) Co., Ltd. proposed a system that monitors coagulation

status in real time with sensors, and automatically controls the dosing of

the inorganic coagulant.

Adoption of this proposal opened the way to reducing annual consumption

of inorganic coagulant by 7% from the previous level, and also led to

reduction in generation of sludge derived from the inorganic coagulant and

the stabilization of treated water quality.

Solution

Task1 Reduction of inorganic coagulant consumption and reduction of

sludge generation

2 Stabilization of wastewater treatment water quality

Reduction of chemical consumption through inorganic coagulant

dosing automatic control system

Case 7 China Ecotek Corporation (Taiwan)

Reduction of chemical consumption by 7%Wastewater

Treatedwater

Second reaction tank

First reaction tank

Poly-electrolyte

Inorganiccoagulant

Control Real time

monitoring device

Sedimentation tank Sludge

DischargeSensor

PP

We greatly appreciate this latest proposal

because we recovered our investment in

less than a year and it was also effective in

reducing costs. We await future proposals

related to wastewater treatment that will

lead to further reduction in environmental

impact and cost.

Customer’s Voice

Producing soft drink water for tea type drinks and functional drinks, etc.,

Haruna Produce Inc.’s Tanigawa Factory is promoting the conservation of

resources and energy in all its business activities in accordance with the

Environmental Policy of the Haruna Group.

The pure water used in the production process is made through a water

treatment system using an RO membrane. It is necessary to heat the raw

water that passes through the RO membrane and reducing the steam

used to heat the water had become an issue.

Kurita Water Industries’ Facilities Division proposed installation of a

preheater to recover heat from the pure water and the optimal operating

method that would keep heating to a minimum.

Adoption of this proposal made it possible for the customer to reduce

annual steam consumption by 27% from the previous level.

Solution

Task Reduction of amount of steam used to heat pure water

Installation of preheater to recover heat from pure water and

optimization of heating temperature

Case 8Tanigawa Factory, Haruna Produce Inc.

Mr. Takaharu Katano, Leader of Society & Environment/Production Technology Sec., Manufacturing unit, Production Headquarters

Safety filter Heatrecovery unit

Non-chemicals/electrodeionization

system

Waste water

Steam

Rawwater

To production process Treated water

Preheater ROmembrane

Waste water

Pressurepump

P

Reduction of steam consumption by 27%

Flow chart

Flow chart

Customer Needs

KuRITA GROuP ENvIRONMENTAL REPORT 201613 Kurita Group Environmental Report 2016 14

vallourec and Kurita started the

implementation of this technology in 2015

and the goal is to achieve all possible

systems along the biennium of 2016/2017.

vallourec believes on Kurita work and

technology in order to make these goals a

reality for the water treatment operation in

Belo Horizonte, Minas Gerais, Brazil.

Customer’s Voice

vallourec Tubos do Brasil S.A (vBR) is a steel company and is

the worldwide leader in solutions using seamless steel tubes. For

environmental and sustainability of vBR’s business, the company is

seeking constantly to reduce the consumption of water and energy and its

processes.

Due to the water shortages experienced in southeastern of Brazil and

the constant need to reduce costs, the Energy & utilities Operations

Management of the plant located in Belo Horizonte, together with the

KDBL´s crew, developed a work to decrease the volume of make-up water

in one of vBR circuits.

This work consists in replacing the make-up water of the cooling towers,

currently provided by the local utility, for recirculated water from waste

water treatment. To this treated effluent were added Kurita chemicals. All

these chemicals were used to reduce the formation of scale, slime, foam

and carbon steel corrosion.

This solution is being studied for expanding to other circuits. This solution

can reduce even more the cost of make-up water in other processes of the

plant.

Solution

Task Decrease the volume of make-up water of the cooling towers

Replacing the make-up water of the cooling towers for recirculated water

from waste water treatment

Case 9 Vallourec Tubos do Brasil S.A (VBR)

Water consumption reduced by1.5%

Left/Mr. Hugo Gontijo (Operational Technician) Center/Mr. Geovane Sousa (Production Technician) Right/Mr. Lucas Meira (Production Engineer)

Waste water

Discharge

Treated water

Sedimentation tank

Sludge

Relaytank

Filtration

Existing line

Recycle

Reaction tank

Cooling water

treatment chemical

Make-up water for cooling system

Cooling tower

Reduction of chemical consumption by 50%

We adopted the proposal because we

were able to confirm in desk and actual

equipment tests that there is no impact

on coagulation or the dewatering process

and because significant costs reductions

were predicted. We greatly appreciate that

we actually achieved not only reduction

in environmental load but also cost

reductions and improvement in terms of

management. We await future proposals

with a mind to reducing costs for all our

plant processes.

Customer’s Voice

Hiroshima Recycle Center Co., Ltd.’s Kui Plant No 2, which recycles

plastic waste, strives to reduce the environmental impact of its business

activities in accordance with its environmental policy.

In its wastewater treatment process, the customer used ferric chloride as

an inorganic coagulant to facilitate agglomeration of suspended solids in

waste water and separation from water. However, this chemical is highly

acidic and corrosive, corroding the steel, etc. used in the wastewater

treatment process, which was an issue.

Kurita Chemicals Sanyo Ltd. proposed changing the inorganic coagulant

to a chemical consisting mainly of aluminum chloride and also proposed

reducing use through an organic coagulant and a poly-electrolyte.

Adoption of this proposal reduced annual consumption of inorganic

coagulant by 50% from the previous level and also made it possible to

reduce corrosion of steel, etc.

Solution

Task Reduction of corrosion of steel, etc. caused by ferric chloride

Optimization of water treatment chemicals used in coagulation process

through organic coagulant and poly-electrolyte

Case 10Kui Plant No. 2, Hiroshima Recycle Center Co., Ltd.

Mr. Yoshito Kawamoto, Manufacturing Department GM in charge of Production Control

Waste water

Discharge

Inflow tank

Reaction tank

Dissolved air flotation tank

SludgeMembrane suction pump

To plant (recycled water) Sludge

Ca reaction tank

Aeration tank (2)

Recycled water tank

Discharge tank

Activated carbon tower

Ca sedimentation tank

Aeration tank (1)

PP

Membrane

Aluminum chloride

Organic coagulantChange

from ferric chloride

Before proposal, without use

Change from zeolite

Flow chart

Flow chart

Poly-electrolyte

KuRITA GROuP ENvIRONMENTAL REPORT 201613 Kurita Group Environmental Report 2016 14

Information

An interview

with the P

resident

Environm

ental Benefits for

Custom

ers for FY 2016

Technological InnovationC

ustomer N

eeds

Internal Change

Topics/C

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Third-P

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Information

An interview

with the P

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Environm

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Custom

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Technological InnovationC

ustomer N

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Internal Change

Topics/C

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Other Examples of Environmental Benefits for Customers

The cooling water system was untreated. However, the treatment using cooling water treatment chemicals reduces consumption of water supply to the cooling water system.

Customer was using chemicals designated by boiler maker and operating boiler at recommended blowdown rate. However, optimization of boiler chemicals makes it possible to significantly lower the blowdown rate and reduce consumption of gas used to fuel the boiler.

Changing aeration tank’s air diffuser to a diffuser with higher oxygen transfer efficiency reduces consumption of electric power which drives the machinery pumping oxygen into the aeration tank.

Introducing equipment for the evaporation-drying of waste produced by the wastewater process to lower water content reduces waste generation.

Replacing containers for water treatment chemicals with returnable containers that may be used many times reduces CO2 emissions from combustion of waste containers.

Purchases and installations of water-saving shower heads for faucets reduce the consumption of clean water and fuel for heating.

Optimization of coagulant to recover excess coating material inside spray booth facilitates dewatering of coagulated sludge and reduces waste.

■ A pharmaceutical plant

■ A hospital

■ A drinking water plant

■ A non-ferrous metal processing plant

■ Factories

■ General households

■ An electronic component factory

Right/Mr. Daisuke Yokozawa, Supervisor, Environment Section, Management Department

Left/Mr. Takanori Saito, Environment Section, Management Department

Kurita presented us with a good proposal

with limited installation space. We

appreciate that Kurita understood the

plant’s overall system, closely monitored

actual operating conditions, always listened

to our opinions, and provided a prompt

service. We await further water-saving

proposals as cooling water is expected to

increase in the future.

Pure waterPure water

pre-treatmentunit

Tap water

Recycled water

Wastewater treatment unit

Discharged water

Existingline

Existingline

Primary pure water Increased

Increased

Reduced

Reduced

Customer’s Voice

Manufacturing noise cut filters for smartphones, the Miyazaki Plant

of Fukui Murata Manufacturing Co., Ltd. is striving to save water and

lessen the environmental impact of its business process through

strict management based on voluntary standards for quality of water

discharged from plants under the Murata Group’s environmental policy.

The customer uses pure water to clean products in the production

process. This pure water is made through a demineralizer which uses

tap water as water supply. The task was to reduce water consumption

and generation of wastewater, which were rising as a result of increased

production.

Kurita Meiki Ltd. proposed a pure water pre-treatment unit to increase

recovery of wastewater from the demineralizer.

Adoption of this proposal made it possible to reduce annual water

consumption by 28% and annual wastewater generation by 80% from

previous levels.

Solution

TaskReduction of tap water consumption and wastewater, which is rising

as a result of increased production

Increase of wastewater recovery through pure water pre-treatment unit

Case 11Miyazaki Plant, Fukui Murata Manufacturing Co., Ltd.

Demineralizer

Existing equipment

Recycled pure water unit

Existing equipment

Proposal

Water savings of 28%Wastewater treatment reduced by 80%

Annual water consumption reduced by

18,375 tons

Annual CO2 emissions reduced by

57,155 tons

Waste generation reduced by

40%

Electric power consumption

reduced by 20%

Gas consumption reduced by

0.5%

Annual waste generation

reduced by 3,900 tons

Annual CO2 emissions reduced by

1,399 tons

Plant

Flow chart

Customer Needs

KuRITA GROuP ENvIRONMENTAL REPORT 201615 Kurita Group Environmental Report 2016 16

Glossary of Terms

Ion exchange The effect of exchanging ions in water with its own ions

Air stripping A method of removing gas and volatile elements contained in liquid by bringing them in contact with air

Sludge A mud-like form of suspended solids in wastewater as a result of sediment or floating

Reverse osmosis (RO) membrane

device

A device that filters water with the use of a reverse osmosis (RO) membrane, which blocks ions, bacteria and other impurities

other than water

Suspended solids Insoluble particles with a diameter of 2 mm or less that remain floating or in suspension in water

Aerobic biological treatment Method of using microorganisms that need oxygen to treat organic matter in wastewater

Poly-electrolyteAn agent based on the chemical substance polyacrylamide which facilitates the agglomeration of suspended solids in water and

their separation from water

CODMeasurement of the amount of oxidizing agent consumed to oxidize organic matter present in water, converted into the equivalent

amount of oxygen. A high COD indicates polluted water

Seamless pipe Steel pipe without any seam

Heavy metalsRefers to metals with a specific gravity greater than 4. In the context of waste, the term often refers to toxic metals such as lead,

mercury and cadmium

Pure water Water from which impurities such as suspended solids, ions and organic matter has been removed

Scale A deposited and solidified form of calcium, silica and other substances originally dissolved in water

Slime Suspended solids formed from microorganisms such as bacteria and algae in water

Downsizing Downscaling to reduce costs and improve efficiency

Ultra-pure waterWater with a purity level of near 100% prepared by removing ions, organic substances, air, fine particles, microorganisms and

other impurities to the maximum degree

DRAMSemiconductor memory that is used for reading and writing data

Used in electronic equipment such as computers, mobile phones and digital cameras

Hot rolling Rolling process that involves heating the metal to high temperatures

Biogas Gas generated from bacterial decomposition of organic substances

BODThe amount of dissolved oxygen consumed by aerobic microorganism to break down organic material present in water over a

specific time period. A high BOD indicates polluted water

PVA Polyvinyl alcohol. Synthetic resin that is highly hydrophilic and water soluble

Inorganic coagulant A chemical that collects and coagulates suspended solids in water, thereby separating it from water efficiently

Organic coagulantA chemical agent that coagulates suspended solids in water. The level of its function is between that of poly-electrolyte and that

of inorganic coagulant

Utilities Electricity, steam, gas, air-conditioning, water, wastewater used by plant/building, and facilities incidental thereto

Excess sludge Mass of microorganisms, etc. cultivated to feed on the organic matter contained in waste water and break it down

Aluminum sulfate Used as an inorganic coagulant

KuRITA GROuP ENvIRONMENTAL REPORT 201615 Kurita Group Environmental Report 2016 16

Information

An interview

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resident

Environm

ental Benefits for

Custom

ers for FY 2016

Technological InnovationC

ustomer N

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Topics/C

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100,000

80,000

90,000

70,000

0

90,994

(FY)2014 2015 2016

92,355 92,232 60,000

15,000

30,000

45,000

0

100

50

25

75

0

47,859

(FY)2014 2015 2016

54,679

33,75676.7

80.0

90.5

200,000

100,000

150,000

50,000

0

181,149

(FY)2014 2015 2016

188,543 188,709

100,000

80,000

90,000

70,000

0

90,994

(FY)2014 2015 2016

92,355 92,232 60,000

15,000

30,000

45,000

0

100

50

25

75

0

47,859

(FY)2014 2015 2016

54,679

33,75676.7

80.0

90.5

200,000

100,000

150,000

50,000

0

181,149

(FY)2014 2015 2016

188,543 188,709

100,000

80,000

90,000

70,000

0

90,994

(FY)2014 2015 2016

92,355 92,232 60,000

15,000

30,000

45,000

0

100

50

25

75

0

47,859

(FY)2014 2015 2016

54,679

33,75676.7

80.0

90.5

200,000

100,000

150,000

50,000

0

181,149

(FY)2014 2015 2016

188,543 188,709

The following reviews the results for FY2016 and the targets for FY2017.

We are working to reduce our own environmental impact by enhancing our operations and introducing new approaches.

Results in Fiscal Year Ended March 2016

*1 Kurita Group companies which are specified business operators and designated energy management factories of Kurita Water Industries

*2 Companies and sites manufacturing water treatment chemicals and facilities*3 Non-production sites: Kurita Group companies and sites other than those listed above *4 The value calculated by dividing energy consumption by production quantity, total floor area or other value closely associated with

energy consumption

To ensure compliance with the Act on Rational use of Energy of Japan (Energy Saving Act), the Kurita Group set targets for per-unit energy consumption*4 and energy consumption and made efforts to reduce energy consumption at its sites as “specified business operators” and “designated energy management factories” under the law. The Kurita Group installed inverters in pumps at ultrapure water supply sites to cut electric power consumption. It also strengthened pH control and monitoring of biological treatment equipment to reduce power consumption of aeration facilities. With these steps, the Group achieved its targets for per-unit energy consumption and energy consumption.

(Reference) CO2 emissionsEnergy consumption <A production sites> (crude oil equivalent)(kiloliters) (tons)

Energy consumption reduction

Item Targets for Fiscal Year Ended March 2016

Results in Fiscal Year Ended March 2016

Energy consumption(A production sites*1) Below 92,355 kl 92,232 kl

<Reference>

Item Results in Fiscal Year Ended March 2015

Results in Fiscal Year Ended March 2016

YoY

CO2 emissions 188,543 tons 188,709 tons 100.1%

Break-down

A production sites 182,509 tons 182,529 tons 100.0%

B Production sites*2 4,205 tons 4,392 tons 104.4%

Non-production sites*3 1,829 tons 1,788 tons 97.8%

Achiered

Waste Reduction and Increase of Recycling Rate

Item Targets for Fiscal Year Ended March 2016

Results in Fiscal Year Ended March 2016

Waste generation Below 54,679 tons 33,756 tons

Break-down

C Production sites*5 Below 53,083 tons 32,044 tons

D Production sites*6 Below 1,345 tons 1,462 tons

Non-production sites*7 Below 251 tons 250 tons

Recycling rate 80.0% or more 90.5%

Break-down

C production sites 80.2% or more 91.8%

D production sites 78.7% or more 72.9%

Non-production sites 46.1% or more 48.9%

*5 C production sites: Kurita Group companies and sites where the amount of waste generated is influenced by the production activities of specific customers

*6 D production sites: Kurita Group companies and sites engaged in R&D and the manufacture of water treatment chemicals and facilities

*7 Non-production sites: Kurita Group companies and sites other than those listed above

Waste generation

(tons)

Recycling rate

(%)

Waste generation Recycling rate *8

Recycling rate = valuable resources + Recycled resources

valuable resources + Waste generation*8

To reduce waste generation, the Kurita Group focused on improving the operation of wastewater treatment control at some ultrapure water supply sites and sludge was reduced as a result of lower loads of wastewater. Waste fluid treated by outside contractors was also reduced with the downsizing of some businesses in the precision cleaning business. As a result, on a group-wide basis, the target could be attained.

Meanwhile, the Kurita Group achieved its target for the recycling rate as a result of significant reduction in waste destined for incineration or landfill associated with the downscaling of certain businesses in the precision cleaning business and the thoroughgoing implementation of waste sorting and collection at the research and development base and individual sites.

Achiered

Achiered

Internal Change

KuRITA GROuP ENvIRONMENTAL REPORT 201617 Kurita Group Environmental Report 2016 18

Case 1 Environmental improvement activities in ultrapure water supply business sites

At ultrapure water supply sites, which account for around 90% of the Kurita Group’s energy consumption, the Group continued working to reduce

per-unit energy consumption through aggressive equipment investment and operational improvements.

Case 2 Environmental improvement activities at Kurita Global Technology Center

Fully-equipped with state of-the-art facilities as the Kurita Group’s research and development center, the Kurita Global Technology Center

continued to focus on reducing per-unit energy consumption by promoting equipment investment and energy conservation measures.

2.5

1.0

1.5

2.0

0.5

0 201420132012 2015(FY)

2016

0.6

0.4

0.5

0.3 201420132012 2015(FY)

2016

Item Targets for Fiscal Year Ending March 2017 Approach

Energy consumptionReduce per-unit energy consumption by 1% or more annually in fiscal 2013 onwards

Set a target on per-unit energy consumption in crude oil equivalent on a site-by-site basis to encourage them to address their reduction targets.

Waste generation Below the previous fiscal year levelIndividual sites will set their own targets to continuously endeavor to reduce waste generation and to increase the recycling rate.

Recycling rate Above the previous fiscal year level

Targets for Fiscal Year Ending March 2017

Examples of Activities

FY Details of reductions

2013

Reduction of electric power consumption by lowering evaporator loads

Reduction of steam used for heating through insulation of primary pure water feed pipes

2014

Reduction of electric power consumption through installations of inverters in various pumps

Reduction of steam used for heating through insulation of primary pure water going and return pipes

2015

Reduction of electric power consumption by lowering evaporator loads

Reduction of electric power consumption by switching to or introducing turbo-type nitrification blowers

Reduction of city gas consumption through primary pure water heating control

2016

Reduction of electric power consumption through installations of inverters in various pumps

Reduction of electric power consumption of aeration facilities by strengthening pH control and monitoring of biological treatment facilities

FY Details of reductions

2013Reduction of electric power consumption by repairing exhaust systems of large laboratories

2014

Reduction of electric power consumption by switching lighting of large laboratories from mercury-vapor lamps to LED

Reduction of electric power consumption by fitting heat insulating window material

2015Reduction of electric power consumption by promoting switch to LED lighting within center

2016

Expansion of electric power generation through installation of additional solar panels

Reduction in use of heavy oil as fuel through introduction of energy-saving boiler

Reduction of electric power consumption by promoting switch to LED lighting within center

Trends in per-unit energy consumption

Trends in per-unit energy consumption

KuRITA GROuP ENvIRONMENTAL REPORT 201617 Kurita Group Environmental Report 2016 18

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Initiatives in Environmental Improvement Activities Overseas

This report introduces examples of activities for environmental benefits for customers, improvement of own

environmental impact, and communication respectively.

The Kurita Group also promoted environmental improvement activities at overseas Group companies, aiming to expand environmental benefits for customers and reduce its own environmental impact.

Environmental benefits for customersEnvironmental benefits for customers at overseas Group companies Estimates for fiscal year ended March 2016*

Activities to improve own environmental impact

The company promoted understanding of environmental improvement activities among employees by reporting data such as electric power consumption and water consumption for each site and communicating issues related to environmental improvement activities in the internal bulletin issued four times a year.

Case China/Kurita Water Industries (Dalian) Co., Ltd.

Left/ President of Hansu Technical Service (left) being presented with letter of thanks for Kurita Environment Month from Secretary (right) Center/ Hansu Technical Service employees holding their participation certificates Right/ Meeting for Discussion on Environmental Improvement Activities

Communication

The Kurita Group holds an event called the Kurita Environment Month to foster awareness about the environment among all Group employees, focusing on August each year. Hansu Technical Service Ltd., which sells and maintains water treatment facilities in South Korea, submitted the most responses of any overseas Group company, indicating the strong environmental awareness of its employees.

Case South Korea/Hansu Technical Service Ltd.

Hansu Technical Service was also the first overseas Group company to hold a “Meeting for Reflection on Environmental Improvement Activities,” to ensure that employees understand the connection between their own duties and environmental improvement activities and commit themselves to environmental improvement activities more independently. They exchanged opinions vigorously and openly at the meeting.

Annual electric power consumption reduced by 4,507 MWh

Annual water consumption reduced by 760,740 m3

Annual waste reduction 1,582 tons

* For orders received in the one-year period from January to December 2015, environmental benefits for customers for FY2016 are quantified by estimating the environmental reductions before and after the introduction of the improvement presented in the written specifications and proposals to customers at the time of receiving orders.

Overseas Group company

Country Customer TaskSolutions proposed to

customersResults

Kurita (Taiwan) Co., Ltd. Taiwan China Ecotek Corporation

•�Reduction of consumption of inorganic coagulants•�Reduction of sludge generation•�Stabilization of wastewater treatment water quality

Reduction of chemical consumption through inorganic coagulant dosing automatic control system

Reduction of chemical

consumption by

7%

Kurita do Brasil Ltda. Brazil vallourec Tubos do Brasil S.A.Decrease the volume of make-up water of the cooling towers

Recovery and reuse of treated water

Water consumption reduced by

1.5%

Further details are shown on page 13.

Further details are shown on page 14.

KuRITA GROuP ENvIRONMENTAL REPORT 201619 Kurita Group Environmental Report 2016 20

The Kurita Group makes strong use of communications with the participation of employees, aiming to encourage them to be more aware of environmental improvements and to stimulate activities.

The Kurita Environment Month

The Kurita Environment Month spotlights environmental activities and awareness in the workplaces and households of all Kurita Group staff members and in local communities. It aims to build awareness to encourage activities to improve the environment. It was held for the second time in FY 2016 after being introduced in FY 2015. For a period of around one month starting from August, the Group invited experiences, eco-ideas, pictures and photos, slogans, catch phrases and poems relating to environmental improvement

from Group officers, employees and temporary workers in Japan and overseas as well as from their family members. As many as 1,040 Group employees and family members in Japan and overseas responded to the call. The responses were published on the Intranet and photos and pictures were made into a collection and distributed to those who took part. The Kurita Group will continue to hold and expand this event in the coming years.

Meeting for Discussion on Environmental Improvement Activities

At this meeting, participating members deepen their understanding of the relationship between their own duties and environmental improvement activities, reflect on what can be done as an organization to expend environmental benefits for customers or reduce their own environmental impact, and translate this into a change in behavior. The

Kurita Group will continue to create and improve this kind of communication to ensure that each employee independently focuses on environmental improvement activities, and that this translates into expansion of environmental benefits for customers and improvement of its own environmental impact.

Communication

The Kurita Group provides financial support for research

and studies and for international exchange in scientific fields

concerning water and the environment through the Kurita Water

and Environment Foundation, established in 1997 to promote

science and technology to contribute to the preservation and

creation of good water environments.

In its research grant program, the Foundation selected from

among 401 applications 89 research projects to receive financial

support for FY 2016. In addition, it offered the Kurita Water and

Environment Scientific Research Prizes of Excellence to those

researchers receiving research grants with distinguished outcomes

or social contributions. In addition, the Kurita Group carries out

a program of offering an award (Kurita Award) for the purpose of

boosting research motivation among young researchers at the

Japan Society on Water Environment, as well as an international

exchange support project for providing assistance in efforts to

address Asia’s water and environmental issues.

Commemorative photograph of award ceremony participants

Providing financial support for research and studies as well as for international exchange on water and the environment

Topics

KuRITA GROuP ENvIRONMENTAL REPORT 201619 Kurita Group Environmental Report 2016 20

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106

7

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144

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2

1

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18

19

12

11

Corporate Data

Company name: Kurita Water Industries Ltd.

Head Office Location: Nakano Central Park East, 10-1, Nakano 4-chome, Nakano-ku, Tokyo 164-0001, Japan

Representative: Michiya Kadota, President

Date of Establishment: July 13, 1949

Paid-in capital: ¥13,450,751,434

Number of employees: 5,481 (on a consolidated basis) 1,528 (parent company)(As of March 31, 2016)

National Network

Domestic Group Companies Overseas Group Companies

Profile

The Kurita Group comprises of the parent company, Kurita Water Industries Ltd., its 49 subsidiaries and two affiliates. The Group’s business is divided into two main categories: the water treatment chemicals business, in which we manufacture and sell water treatment chemicals, and the water treatment facilities business, in which we manufacture and sell water treatment facilities and provide related maintenance services. We have long been contributing to the development of industry and society as a leading company in the field of water treatment based on our corporate philosophy, “Study the properties of water, master them, and we will create an environment in which nature and man are in harmony.” In the21st century, which is sometimes called the “century for the environment,” we are committed to making contributions to society by achieving advanced water management with our latest products, technologies and services to ensure that water of appropriate quality and quantify will always be available, whenever and wherever it is needed.

Water Treatment Chemicals business

Water Treatment Facilities business

Sale of Water Treatment Chemicals

Kurita Buil-Tech Co., Ltd.Kurita BMS Co., Ltd.Kurita Chemicals Hokkaido Ltd.Kurita Chemicals Kanto Ltd.Kurita Chemicals Tokai LtdKurita Chemicals Hokuriku Ltd.Kurita Chemicals Kansai Ltd.Kurita Chemicals Sanyo Ltd.Kurita Chemicals West Japan Ltd.Kurita Chemicals Kumamoto Ltd.Kurita Chemicals Oita Ltd.

Manufacture of Water Treatment Chemicals

Kurita Chemical Manufacturing Ltd.

Water Quality Analysis and Environmental Analysis

Kurita Analysis Service Co. Ltd.

Sale and Maintenance of Water Treatment Facilities

Kurita Meiki Ltd.

Tool Cleaning Services

Kuritec Service Co. Ltd.

San-ei Industries Co., Ltd.

Nippon Fine Co., Ltd.

Sun Kako Co., Ltd.

Aoi Industries Co., Ltd.

Sale and Manufacture of Water Treatment Chemicals

1 Kurita-GK Chemical Co., Ltd.

2 Kurita (Taiwan) Co., Ltd.

3 Kurita Water Industries (Dalian) Co., Ltd.

4 Kurita Water Industries (Jiangyin) Co., Ltd.

5 Hansu Co., Ltd.

6 Kurita Europe GmbH

7 Kurita France S.A.S

8 Kurita Iberica SL

9 Kurita Turkey Kimya A.S.

10 Kurita Sverige AB

11 Kurita Polska SP.z.o.o.

12 Kurita do Brasil LTDA.

Manufacture and Sale of Water Treatment Facilities and Operation, Maintenance and Management of Water Treatment Facilities

13 Kurita Water Industries (Suzhou) Ltd.

14 Kuritec (Shanghai) Co., Ltd.

15 Hansu Technical Service Ltd.

Manufacture and Sale of Water Treatment Chemicals and Facilities and Operation, Maintenance and Management of Water

Treatment Facilities

16 Kurita (Singapore) Pte. Ltd.

17 Kurita Water (Malaysia) Sdn. Bhd.

18 P.T. Kurita Indonesia

19 Kurita America, Inc.

Operation, Maintenance and Management of Water Treatment

Facilities

Kuritaz Co., Ltd.

Chemical Cleaning and Cleaning of Plant Facilities

Kurita Engineering Co., Ltd.Miyoshi Industries Co., Ltd.

Manufacture and Sale of Commercial Water Treatment

Equipment and Household Products

Kurita Creation Co., Ltd.

Soil and Groundwater Remediation

Land Solution Inc.Land Management Inc.

Other Affiliates

Kurita Sogo Service Co., Ltd.With Kurita Ltd.

Company Information

KuRITA GROuP ENvIRONMENTAL REPORT 201621 Kurita Group Environmental Report 2016 22

As a third party, independent of the Kurita Group, we herein state our opinions with the aim of enhancing the credibility of the Kurita Group Environmental Report 2016 through an evaluation of the environmental management efforts described in the report.

To examine how the Kurita Group’s environmental management activities were planned and executed, and how environmental performance data resulting from these activities (which serve as a basis for publicly disclosed information) were evaluated and utilized, we interviewed Michiya Kadota, president of Kurita Water Industries, questioned key persons at the company’s head office and visited one of its corporate customers.

We also visited Kurita Water Industries’ Toyoura Plant to check related documents, ask questions of the persons in charge, and check whether the source documentation for publicly disclosed data is being handled systematically in a predefined manner.

Environmental Management Evaluation ReportTo: Kurita Water Industries Ltd.

Outline of the purpose of this report and implemented procedures

Evaluation and comments

Contributing to reducing the environmental impacts of customers

The Kurita Group’s environmental improvement activities

The Kurita Group has been calculating environmental benefits for customers for around a decade and one of the reasons it is highly regarded by customers is that it is able to quantify the benefits for customers of reducing environmental impact. Clearly, the Group’s pioneering initiatives over the years and efforts to raise environmental awareness among all employees have facilitated environmental management and become a source of competitiveness. It is fair to say that environmental management is sufficiently entrenched within the Kurita Group.

In recent years, the Kurita Group has rapidly developed its global operations and increased overseas sales. When expanding by means such as acquisition, it is important to instill the corporate philosophy and thoroughly implement environmental management. The Group has just started accumulating numerical data such as environmental benefits for customers and reduction of its own environmental impact in its overseas operations, and we hope that the Group will draw on the expertise it has built up in its domestics operations and use such data as effective indicators. Water is likely to become a key word as a global trend in the future. The Kurita Group will be increasingly expected to clearly show the value that is created through water management.

Within the scope of our basic examination, we found no serious discrepancies in the calculation of environmental performance data.

We visited a corporate customer of the Kurita Group to interview the company about its opinion and evaluation of the Group’s proposal activities. Faced with the issue of simultaneously reducing water consumption and wastewater generation at a plant with increasing production, the Kurita Group did not simply increase the amount of recycled water and equipment but proposed the most efficient recycling system for the entire process, which in turn solved the problem. At a plant in a location where it is difficult to secure industrial water, reducing water consumption is crucial for stable operation and reducing wastewater generation through the recycling of water lessens environmental impact. This system was a proposal that curbed costs and also took the equipment installation space into consideration, and it was highly rated by the customer. This would also be a very effective system for plants with similar restrictions and gives a sense of the competitiveness of such proposals. We believe that companies with a high level of environmental awareness find the Kurita Group’s proposals more attractive and rate them more highly. We hope that the Kurita Group will continue to work with corporate customers to reduce environmental impact in the future.

We visited the Kurita Group’s Toyoura Plant, which is in charge of regenerating and refining ion exchange resin in Western Japan, to interview some of its personnel involved in environmental improvement activities and take a look at their activities.With production increasing, the plant has achieved reductions in energy consumption and produced significant benefits through the synergistic effect of incremental investment in equipment and improvement in day-to-day activities. This is highly commendable. The Toyoura Plant has created a system of cooperation whereby it integrates activities with partner companies, partner companies also fully understand the Kurita Group’s environmental management and work together to promote environmental management. This is extremely important at a time when environmental management throughout the supply chain is regarded as important.

We also observed the status of management of numerical data at the Toyoura Plant and found that both the plant and its partner companies manage numerical data appropriately.

June 13, 2016Institute for Environmental Management Accounting

Katsuhiko Kokubu (Director/ Professor at Graduate School of Business Administration, Kobe University)Eriko Nashioka (Representative Director/CPA & Certified Public Tax Accountant)

To ensure the disclosure of highly reliable information on a continual basis and to improve the quality of our environmental management, we ask the Institute for Environmental Management and Accounting (IEMA), as a third party, to give us their opinion concerning our environmental activities.

Third-Party Opinion

KuRITA GROuP ENvIRONMENTAL REPORT 201621 Kurita Group Environmental Report 2016 22

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