Policy and Approach
Skylark Group uses large amounts of water in a series of processes such as washing employees' hands, cooking food, washing tableware, and cleaning equipment at stores and central kitchens nationwide. All employees are working together to conserve water in consideration of the global environment and from the viewpoint of reducing costs.
To control environmental pollution, we have a policy of complying with laws, regulations, and ordinances, not discharging or using hazardous substances, and we ensure proper wastewater treatment and prevention of oil spills in our stores and factories.
We also surveyed our sites located in water risk areas where there is a risk of decline in quantity or quality of water resources using WRI Aqueduct's Water Risk Atlas. As of the end of 2025, no sites were located in “extremely high water risk” or “high water risk” basins. Regarding water-stressed areas, there was one facility in Japan and one facility outside of Japan located in a “highly water-stressed” watershed, and we are working to take appropriate measures. These applicable sites account for approximately 0.06% of our total locations. Furthermore, as a result of risk assessments in these areas, we have confirmed that there are no significant risks affecting business continuity regarding water accessibility (ease of acquisition), availability (usable quantity), or water quality (pollution status, etc.).
Risks and Opportunities
Indicators/KPI
Examples of Company-wide Action
Skylark Group recognizes sustainable water resource utilization as a key management issue and is actively committed to its management and conservation.
As part of these efforts, we have consistently responded to the CDP Water security questionnaire, a global framework for water risk management. In 2025, our initiatives were highly regarded internationally, resulting in an "A Score" for the second consecutive year, following our achievement in 2024.
We believe this accomplishment is the result of our Group-wide efforts to reduce water consumption, which include introducing water-saving equipment and improving the efficiency of water use under a unified, company-wide collaborative framework. We will continue to promote ongoing water conservation activities and disclose information in accordance with international standards.
Central Kitchen Initiatives
In addition to setting the amount of water per minute for employees' handwashing points using water-saving faucet inserts and automatically controlling them with a timer, we are also striving to save water at each site by controlling the amount of water and time according to the purpose of use.
Regarding water sources, we are reducing the actual amount of water by utilizing deep-level groundwater, using rainwater for cooling outdoor facilities, and making secondary use of wash water for cleaning equipment in our manufacturing areas. This includes efforts to reuse and utilize water for other purposes.
Furthermore, we have improved the amount of water usage by changing our cleaning methods. Each manager conducts water conservation patrols, and we run the "Mottainai Movement" for employees to limit waste. We also conduct quantitative management so that we can view the results by location on a daily basis, and our headquarters strives to confirm and control the progress.
Store Initiatives
In order to achieve a balance between hygiene management and water conservation at our stores, we have established rules for hand-washing procedures and set standards for the amount of water used in hand-washing areas, while working to instill these practices through employee education. We also aim to raise employee awareness by sharing successful water-saving examples through video distribution to all stores and online training. Furthermore, we are actively adopting water-saving equipment, including faucet inserts, water-saving nozzles, water-saving toilets (experimental), and high-efficiency dishwashers.
As of the end of 2025, the installation of water-saving nozzles has been completed at approximately 91% of our domestic group stores, as part of our efforts to optimize water use efficiency across all business activities. As a result, we achieved an approximately 17% reduction in water withdrawal in 2025 compared to 2018 levels.
For stores with further potential for water savings, we are implementing the "Mottainai Movement," which involves visualizing water usage and setting specific reduction targets. Additionally, some brands are inviting customer cooperation by transitioning to a self-service model for drinking water, providing it only to those who require it.
Investment in water-related risk mitigation
Group recognizes water-related risks in its business operations—such as water scarcity, regulatory changes, and physical disasters—as a material management priority. We continuously allocate the necessary financial resources (OPEX and CAPEX) to mitigate these risks and ensure the sustainability of our operations.
Unit：thousand yen
【Breakdown and Definition】
- Water-related risk management costs (OPEX): Costs incurred for water risk management in daily operations, including water charges and expenses for the rental, maintenance, and inspection of water-saving valves and water-saving systems.
- Water risk mitigation and R&D investment (CAPEX): Research and development and capital investment aimed at reducing future water risks. This includes the cost of introducing the latest water-saving nozzles and high-efficiency eco-friendly dishwashers, as well as expenses for validation and demonstration experiments to establish mechanisms for the recycling and secondary use of cleaning water.
Through these investments, Group strives to maximize the efficient use of water resources and mitigate future water-related risks, such as water stress and supply instability associated with climate change.
Wastewater Treatment
Our group utilizes a lot of water for cooking and washing dishes and utensils. For this reason, we also place great importance on improving the quality of our wastewater. Approximately 90% of our wastewater is discharged to third parties, but we also treat our own wastewater with tertiary and secondary treatment in accordance with legal standards.
In addition, wastewater quality and water temperature are inspected at least once a year to ensure proper management, alongside improvements at the source. During normal inspections, wastewater quality is checked by measuring water temperature, transparency, odor, and pH. When the competent government requires voluntary water quality inspections, water samples are collected and requested to an inspection agency for water quality testing, in addition to the water quality checks during normal inspections. As for its water quality testing, most of them are 5 items: pH, BOD, SS, N-hexane, and E. coli, but it varies from 1 to 8 items depending on the instructions of the competent administration. We will continue to strengthen management for the future.