Sustainability in Operations > Reducing Water Use and Air Pollution

Water Risk Assessment

We assess each year whether any business sites are located in regions affected by water stress or water scarcity and develop countermeasures for different risks.

We apply international water resource management techniques such as the Aqueduct Water Risk Atlas* from the WRI (World Resources Institute) to identify water stress and risk areas. We then establish and implement strategies countering each risk based on the water guidance by CDP.

  • * Assessment of quantitative and qualitative water resource data as well as regulatory and reputational risks

Water Risk·Opportunity and Response Strategy

DS Division water risks and response strategy

DS Division water risks and response strategy
Risk Response strategy
Drought,
water outage
  • Establish a water source diversification strategy, including the development of an emergency supply system
  • Calculate expected drought damage costs
Increases in
South
Korean
water
stress
index
  • Annually review water stress and water resource risks at each site and prepare response strategies accordingly
Water resource
depletion,
pollution
  • Participate in activities commemorating World Water Day
  • Engage with local communities and prevent water risks
Water
regulations
  • Monitor local environmental policies and regulations, and apply legal standards as well as rigorous internal criteria for management

※ DS Division's Water Stress Level

A table showing DS Division’s risk sites and their corresponding water stress levels.
Site Water Stress Level
South Korea (Giheung, Hwaseong,
Pyeongtaek, Cheonan, Onyang)		 Medium-High
China (Xi'an, Suzhou) Extremely High
China (Tianjin) Medium-High
United States (Austin, Taylor) Medium-High

DS Division water opportunities and strategy

DS Division water opportunities and strategy
Opportunity Response strategy
Secure comparative
competitiveness
through
value chain water resources
management support
  • Share best practices and results from annual water-saving efforts, and help manage water footprints across the entire supply chain

DX Division water risks and response strategy

DX Division water risks and response strategy
Category Risk Response strategy
Physical
Risks		 Drought
  • Establishment of emergency response plans for droughts
  • Building a joint response system in collaboration with local stakeholders
  • Regular monitoring of water usage and drought indicators

    * Corresponding regions: Vietnam and India
Flood
  • Establishment of flood prevention and reporting systems at all business sites (including alert issuance criteria, response protocols, and regular drills)

    * Corresponding regions: All business sites, including Vietnam and Brazil
Water Quality
Degradation
  • More frequent in-house water quality analysis and improving the efficiency of water treatment facilities

    * Corresponding regions: Brazil, Egypt, India, etc.
Ecosystem
Resilience
  • Efforts to conserve natural ecosystems through initiatives such as watershed restoration and support for the installation of agricultural water pumping facilities in collaboration with local governments

    * Corresponding regions: Vietnam, Mexico, etc.
Regulatory
and Reputation
Risks		 Policies and Laws
  • Continuous monitoring and compliance with local environmental policies and regulations
  • Managing with stricter standards than permissible emission standards of each country
Infrastructure and
Investment
  • In-house treatment of waste water at worksites as well as treating in the final treatment facility within the industrial complex
  • Measuring and managing quality of water discharged from the worksites, continuous expansion of investment in facilities to obtain clean water resources
Government and
Governance
  • Active communication with local governments and communities, performing environmental protection activities
  • Initiating environmental protection activities

※ DX Division status of business sites with water risks1)

DX Division status of business sites with water risks 1)
Category Unit Number of
business
sites		 Water
withdrawal		 Outflow
Total 1,000 tonnes 25 18,961 15,446
Regions at Risk 1,000 tonnes 102) 2,594 2,038
  • The classification of countries with water risks is based on regions with a WRI Aqueduct Baseline Water Stress score of High (3) or higher.
  • As of 2024, number of water risk sites by country: India(2), Mexico(2), Poland(1), Egypt(1), China(1), Thailand(1), United States(1), Indonesia(1)
Last updated June 27, 2025