Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Human Rights
• Corporate Governance
• Corporate Citizenship
• Supplier Relations
• Quality Management
• Occupational Safety and Health

Environmental Achievements

• Reduced CO2 emissions by 62.3% per unit sales compared to fiscal year 1990.
• Reduced total waste by 49% compared to fiscal year 2003.
• Achieved zero emissions in Yokogawa Electric Headquarters and six main factories.
• Reduced power consumption by 40% at Komine Factory through compressor operation control.
• Kofu Factory received METI Minister Award for energy-saving activities.
• ESCO business received 2009 Energy Conservation Grand Prize.

Social Achievements

• Proactive employment of people with disabilities, exceeding legal requirements.
• Implemented Employee Assistance Program (EAP) for mental health support.
• Supported education in developing countries through book donations and scholarships.
• Provided disaster relief efforts.
• Participated in community activities like cleanups and Green Curtain planting.

Governance Achievements

• Established CSR Promotion Headquarters and CSR and Business Ethics Department.
• Participated in the United Nations Global Compact.
• Strengthened internal control system and risk management.
• Implemented compliance management with training and reporting systems.

Climate Goals & Targets

Environmental Challenges

• Reducing energy consumption and protecting the environment across all industries.
• Managing risks related to the external environment, business plans, partnerships, and human resources.
• Maintaining compliance with environmental laws and regulations.
• Addressing water leakage and water loss in water supply networks.

Mitigation Strategies

• Developed and provided environmentally friendly products and solutions to customers.
• Implemented risk management using the PDCA cycle and risk map.
• Established an environmental management system with continuous improvement measures.
• Installed STARDOM controllers and monitoring systems to reduce water loss.

Supply Chain Management

Responsible Procurement

• Yokogawa Group Supply Chain CSR Guideline
• Three Basic Procurement Principles
• Green Procurement Guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, OHSAS 18001

Sustainable Products & Innovation

• DC voltage/current source "GS200"

Awards & Recognition

• Green IT Award 2009 Minister of Economy, Trade and Industry Award
• 2009 Energy Conservation Grand Prize
• Agency of Natural Resources and Energy Director-General’s Award

Environmental Metrics

ESG Focus Areas

• Net-zero emissions
• Well-being
• Circular economy
• Climate change
• Resource problems
• Human rights
• Supply chain management
• Information security
• Quality assurance

Environmental Achievements

• Reduced GHG emissions by 23.8% (compared to FY2013)
• Avoided 85.13 million tons of CO2 emissions (cumulative from FY2018)
• Introduced vacuum drying/washing machine, reducing organic solvent use
• Improved water conservation measures

Social Achievements

• Increased female manager ratio to 10.2% (consolidated)
• Improved employee engagement score to 78%
• Launched various initiatives to improve work-life balance, including flextime, telecommuting, and time-unit leave
• Implemented harassment prevention measures
• Increased male employees taking childcare leave to 7.9%
• Established Yokogawa University for employee development

Governance Achievements

• Revised Yokogawa Group Code of Conduct and Compliance Guidelines
• Implemented sustainable procurement guidelines
• Established a human rights policy
• Conducted human rights risk assessments
• Strengthened information security measures
• Obtained ISASecure SDLA certification for control system products

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business activities
• Supply chain disruptions
• COVID-19 pandemic
• Maintaining high levels of employee engagement
• Ensuring compliance across the global supply chain
• Managing climate-related risks and opportunities

Mitigation Strategies

• Developed solutions for renewable energy and LNG
• Implemented digital transformation initiatives to improve productivity and efficiency
• Introduced remote monitoring and maintenance technologies
• Implemented various initiatives to improve employee engagement
• Established sustainable procurement guidelines and conducted supplier audits
• Developed a comprehensive risk management framework, including climate-related risks

Supply Chain Management

Supplier Audits: Approximately 200 business partners annually (planned)

Responsible Procurement

• Yokogawa Group Sustainable Procurement Guidelines
• RBA Code of Conduct V6.0
• Conflict minerals initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in market requirements due to SDGs

Opportunities

• Growth of renewable energy markets

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 9001, ISASecure SDLA, ISASecure EDSA

Third-party Assurance: Lloyd's Register Quality Assurance Limited

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 11
• Goal 13
• Goal 15

Yokogawa's activities contribute to these goals through various initiatives

Sustainable Products & Innovation

• Environmentally friendly products with LCA labeling

Awards & Recognition

• CDP Water Security A List
• CDP Supplier Engagement Leader Board

Environmental Metrics

ESG Focus Areas

• Achieving carbon neutrality
• Improving efficiency in society & industry
• Optimizing plant lifecycle & protecting environment
• Improving health & safety
• Creating a resource-recycling ecosystem
• Creating workplaces where people can fulfill their potential

Environmental Achievements

• Reduced GHG emissions (Scope 1 and 2) by 27.2% compared to FY2019
• Increased proportion of group-wide electricity consumption from renewable energy sources to 21.4% in FY2023
• Reduced the amount of used chemicals by 10% per year in gold plating process

Social Achievements

• Achieved 79% employee engagement score in 2023
• Increased the proportion of women in managerial positions to 14.5%
• Launched a unique training program “SPiCE” for engineering students, delivering more than 16500 man-weeks of Industrial Automation training

Governance Achievements

• Transitioned to a Company with a Nominating Committee structure in June 2024
• Revised the performance-based stock compensation plan for executive officers in June 2024
• Established the Sustainability Committee in FY2022

Climate Goals & Targets

Environmental Challenges

• Increase in GHG emissions (Scope 3) by 7.8% compared to FY2019 due to increased emissions from purchased goods and services
• Increase in water intake by 1% compared to FY2022 due to factors such as an upturn in the office attendance rate, an expansion of business activities and a water leak
• Shortfall in achieving targets for several business activity indicators in FY2023

Mitigation Strategies

• Accelerating efforts to reduce power consumption of existing products and develop low-GHG emission solutions and products; reviewing calculation methods and discussions with suppliers to achieve FY2030 targets for Scope 3 emissions
• Improving production processes and introducing water-saving devices to curb the increase in water intake; setting a target to reduce water withdrawal per unit of sales by 20% from the FY2023 level by FY2030
• Further accelerating contribution and growth under GS2028 based on the results of AG2023 target review

Supply Chain Management

Supplier Audits: Approximately 200 suppliers per year using SAQ

Responsible Procurement

• Yokogawa Group Sustainable Procurement Guidelines based on RBA Code of Conduct and ISO 20400:2017

Climate-Related Risks & Opportunities

Physical Risks

• Damage to business sites and impact on supply chains from climate disasters

Transition Risks

• Impact on businesses from measures such as carbon taxes
• Business opportunity losses due to changes in laws and regulations
• Business opportunity losses due to delayed implementation of climate change initiatives

Opportunities

• Expansion of value provision in the renewable energy market
• Support for utilization of clean energy (low-carbon hydrogen and ammonia)

Reporting Standards

Frameworks Used: GRI Standards, TCFD, TNFD

Certifications: ISO 14001, ISO 45001, ISASecure SDLA, ISASecure CSA

Third-party Assurance: LRQA Limited

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

Various corporate citizenship activities contribute to these goals

Sustainable Products & Innovation

• Products with low GHG emissions
• Energy-efficient products
• PCs with bioplastic casings

Awards & Recognition

• Medal with Dark Blue Ribbon (Japan)
• Golden Order of Merit from the Japanese Red Cross Society
• ACE Performance Excellence Award for Virtual Trainings