Water is closely linked to other environmental factors, including climate change. Epson recognizes its dependence on water resources and acknowledges that the sustainability of water resources is critical for business continuity. Therefore, Epson proceed water management activities at the group level and at each site.

• Water Resource(Performance)
• Addressing Water Related Risk

Epson has set group-wide goals for water usage efficiency and is working to reduce water consumption through the introduction of water-saving equipment and improving the recycling rate of industrial water. Additionally, the water intake situation at each site is monitored by categorizing it into surface water and groundwater. The company places importance not only on managing the water used in manufacturing processes but also on ensuring that all employees have access to safe drinking water and sanitary water environments. At some sites, improvements such as the introduction of water-saving toilets, as well as awareness-raising activities for employees on water conservation and pollution prevention, are being implemented.

Moreover, water management plans have been developed at 25 sites, which account for 87% of the total water usage across all manufacturing sites. These plans set goals for reducing water consumption and increasing water recycling rates, promoting the proper management of water resources at each site.

2023 Overview

Group Goal: 7.3 thousand m³ per billion yen
* 1% reduction in water intake per unit of annual revenue compared to the reference value.
Result: 6.2 thousand m³ per billion yen (15% reduction form the reference value)
Reference value: 7.4 thousand m³ per billion yen (average for FY2017 to FY2022)

The water-related risks of Epson's production sites were assessed using two global standard tools for water risk assessments: Aqueduct, developed by the World Resources Institute (WRI), and Water Risk Filter, developed by the World Wide Fund for Nature (WWF). These tools assess water primarily from a perspective of physical quantity of water resources and water pollution risks. The results of the assessments showed that no Epson site qualifies for the highest risk level per the overall risk indicators. However, it was found that nine of Epson's manufacturing sites in Japan, China, Southeast Asia, and South America are located in areas with water stress.

These nine sites account for 27% of the total number of manufacturing sites across the group and use approximately 4,200 thousand m³ of water (FY2023). We confirmed the local water risk situation through questionnaires and interviews at nine sites identified as being located in areas with water stress. Furthermore, we conducted interviews with local organizations that supply water to those production sites. As a result, we learned that the impact on operations from water shortages is limited at those sites.

Water Intake Ratio in Areas with Water Stress (by Region) and Baseline Water Stress Map (FY2023)

Therefore, a reduction in water intake is not a major issue even at sites identified as being located in areas with water stress using screening tools. Nevertheless, water is an important resource. We recognize we must use water approximately. With this awareness in mind, considering insights gained from communication with the World Wide Fund for Nature Japan (WWF Japan), which has expertise in water resources, we have set the medium-term target below emphasizing water use efficiency. Moving forward, we will continue to monitor water usage and engage in activities to reduce water consumption within our company to realize this medium-term target. Together with this, we will comply with water-related regulations and continue to consider measures for sustainable water use in each basin in collaboration with environmental conservation groups and local stakeholders. In addition, to understand and assess water risks across the entire supply chain, Epson began analyzing water risks in the watersheds where some of its suppliers are located in fiscal year 2023.

【Medium-term Target】

Group Target: Improve water use efficiency (1% reduction in water intake per unit of annual revenue compared to the reference value)
Period: From FY2023 to FY2025
Target value: 7.3 thousand m³ per billion yen
Reference value: 7.4 thousand m³ per billion yen (average for FY2017 to FY2022)

Evaluation and Response to Water-Related Risks under the 1.5℃ Scenario

Based on the scenarios equivalent to a 1.5℃ temperature increase presented by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA), as well as analysis of water-related risks using internal and external information, we have confirmed that the changes in operational risks in the future due to factors such as flooding, sea-level rise, and drought are limited for our business locations. Short-term climate-related risks concerning our business locations and supply chain will be addressed through our Business Continuity Plan (BCP).

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