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Circular Economy

Approach

The IHI Group positions the creation of a circular economy as one of its main environmental issues, and strives to reduce waste emissions and water consumption, improve resource efficiency, and reduce environmental impact.

Governance

The IHI Group deliberates and decides on the approach and important matters of establishing a circular economy through the Environment Committee, a Group-wide body. Each office, plant, and business establishment has set up an Environment Committee to draft policies tailored to the needs of each region based on Group-wide policy.

Environmental Management—Governance

Strategy

The IHI Group aims to create a resource-recycling-oriented society thereby helping drive the transition to a circular economy. Therefore, in its business activities, the Group is working to reduce waste emissions through the 3Rs (reduce, reuse, recycle) and to reduce water withdrawal and water consumption. Also, in addition to providing resource-efficient products using minimal quantities of resource input and consumption, the Group is working to expand its business of providing comprehensive services that include reuse, repair and maintenance throughout the entire product life cycle.

Risk Management

Waste

The IHI Group strives to reduce waste emissions by improving the yield of raw materials in plant production and improving recycling rates through careful separation. In addition, in order to promote the transition to a circular economy, the Group is working to develop designs that take into consideration the effective use of social stock in the cycles of raw material procurement, plant production, and product use, and to expand services that allow products to continue to be used for a long time.
Additionally, to ensure that all waste is disposed of properly, the Group’s waste management initiatives also review collection, transportation, and waste disposal contracts, verify final disposal through digital manifests, and confirm circumstances on-site at intermediate and final waste disposal sites.

Cooperation with Third Parties to Reduce Waste Emissions

The IHI Group works with expert consultants to operate a waste management system to reduce waste emissions at its plants and offices and ensure compliance with laws and regulations. In addition to a detailed understanding of quantities of waste by type, the Group ensures compliance with laws and regulations and reduces waste emissions by checking interim treatment contracts and contract periods.
Similarly, the Group regularly entrusts specialized consultants with group training for waste management personnel at offices, plants, and affiliated companies, where they learn about legal and regulatory requirements and case studies of legal and regulatory violations.

Water Resources

The IHI Group primarily uses public and industrial water as water resources. In regions with abundant underground and river water resources, the Group uses these resources in combination with public water carefully to reduce its risk of obstruction to stable water withdrawal. Therefore, each office and plant considers the water quality and quantity necessary for its use and chooses the best resource to withdrawal water.
In some plants where river water is available in abundance, river water is used instead of tap water as cooling water for heat treatment furnaces, etc. When draining water, heat exchangers are used to avoid pollution risks during water discharge.
Also, the Group is also working with local governments to consider products and services that contribute to the effective use of agricultural water and other water resources.

Water Risks Survey

The IHI Group conducted a survey of water-stressed regions using the World Resource Institute’s Aqueduct Water Risk Atlas, a global water risk map, targeting consolidated affiliate companies that collect environmental information.
Of the 73 locations surveyed, six locations (8.2%) were in areas classified as High Risk or higher. Based on the survey results, the Group will consider measures at sites classified as High Risk or higher and implement water risk management.

Specific Activities to Reduce Water Consumption

In order to reduce water consumption, the IHI Group reuses tertiary treated water instead of city water for sprinklers on its grounds to the extent possible, and reuses wastewater in painting and cleaning processes. At the head office building, gray water made from recycled kitchen wastewater and other gray water is used to flush the toilets.
In addition, as a Group-wide environmental activity goal, the Group has set a 1% reduction in water withdrawal at each site compared to the previous fiscal year, and the Group is managing the monthly water withdrawal at each environmental management center by graphing it and comparing it over time. Monitoring the monthly changes in water withdrawal leads to early detection of any leakage.

Metrics and Targets

Waste Emissions and Water Withdrawal Targets and Results (IHI Group Environmental Action Plan 2023 [FY2023–2025])

(Scope: IHI and consolidated subsidiaries)

Action Plan Target KPI FY2022 Results
(Base Year)
FY2023 Results*

Status of Achievement

Circular economy Reduce waste emissions by 3% or more in FY2025 from that in FY2022 Waste emissions (tons) 23,044 25,410 10.3% increase
Review the definition of recycling rate and determine the amount of final waste disposal (more than 90 wt% of all waste) Recycling rate (%) The definition of recycling rate was revised and finalized (FY2023 target)
Reduce water withdrawal by 3% or more in FY2025 from that in FY2022 Water withdrawal (1,000 ㎥) 4,037 5,844 44.8% increase

Waste emissions and water withdrawal increased due to temporary changes in production processes at overseas sites.

Waste Emissions and Water Withdrawal/Waste Water

(Scope: IHI and consolidated subsidiaries)

Item FY2020 FY2021 FY2022

Third-party Verification

FY2023

Third-party Verification

Waste Waste emissions (tons) 20,912 23,633 23,044 25,410
 Of which, toxic waste emissions (tons) 182 255 156
(Domestic only)
128
(Domestic only)
Amount of valuable materials (recycled) (tons) 15,067 16,164 17,869 15,219
Water Water withdrawal (1,000 ㎥)* 4,008 4,195 4,037 5,844

Public water (1,000 ㎥)

651 664 670 2,326

Industrial water (1,000 ㎥)

799 792 737 738

Groundwater (1,000 ㎥)

1,731 1,691 1,451 1,506

Rainwater, rivers, lakes, etc. (1,000 ㎥)

827 1,047 1,180 1,274
Waste water (1,000 ㎥) 3,373 3,265 3,181 4,856

The total value for each item is rounded off and may not match the figures in the breakdown.

Third-party Verification of Data

Environmental Top