Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Safety

Environmental Achievements

• Reduced waste output by volume steadily due to a zero emissions program
• Decreased greenhouse gas emissions by 11% relative to the previous year despite increased production
• Planted 4,300 trees as part of the Forever Forest project (Phase II), aiming for 35,000 by 2014

Social Achievements

• Provided disaster relief efforts to those affected by Typhoon Ondoy
• Awarded the Outstanding Recognition for Overall Performance Award by Clark Development Corporation for the second consecutive year
• Organized a volunteer event with 967 participants for the Forever Forest project

Governance Achievements

• Implemented OHSAS 18001 occupational health and safety management system

Climate Goals & Targets

Environmental Challenges

• Global recession affecting business operations

Mitigation Strategies

• Reviewed practices, standards, and methods to eliminate waste and increase manufacturing efficiency

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Outstanding Recognition for Overall Performance Award by Clark Development Corporation

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 14% reduction in CO2 emissions relative to the base year (2005) at the Shinshiro Plant (main building)
• 100% recycling and reuse of resources at Shinshiro Plant in FY2009
• Modal shift from road transport to coastal shipping (Eco-Ship Award)

Social Achievements

• YOKOHAMA Forever Forest project: Donated approximately 6,000 seedlings to local community groups
• Factory tours and discussion meetings with local ward associations and students
• Participation in Shinshiro Clean Festa and local clean-up days

Governance Achievements

• Established an Environmental Policy with specific goals and targets
• Implemented Occupational Safety and Health Management System (OSHMS)

Climate Goals & Targets

Environmental Challenges

• Carbon emission from Banbury mixer during typhoon

Mitigation Strategies

• Supplemental inspections after typhoons, replacement of bucket feed system with pneumatic feed

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Eco-Ship Award

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Quality
• Delivery
• Labor Practices
• Community Involvement

Environmental Achievements

• Planted 1,656 trees in October 2013, 1,950 trees in May 2014, and 2,700 trees in October 2015 as part of the YOKOHAMA Forever Forest Project. Planned to plant 4,400 trees annually, reaching 16,000 by FY2017.
• Implemented measures to reduce production scrap, improve recycling rates, and reduce industrial waste.
• Implemented energy-saving measures and established “Energy-Saving Month” in February and “Environment Month” in June of FY2015.

Social Achievements

• Established Labor and Management Councils for regular communication and improvement suggestions.
• Created a soccer team to promote employee fitness and health.
• Conducted workplace environment evaluations in accordance with Russian law.
• Provided training including first-aid and manager education, and an English language class.
• Employs people with disabilities and handles pregnancy and childbirth issues in accordance with the law.
• Certified and registered as a company conducting responsible labor management and employment in compliance with all labor laws and regulations in Russia (first foreign company in the region).

Governance Achievements

• Established a legal, compliance, and internal control department under the Vice President to navigate the complex Russian legal system.
• Uses external consultants for issues requiring external resolution.
• Prevents misconduct in purchasing activities by establishing detailed internal approval rules.
• Obtained TS16949 Certification in FY2014 and is working towards ISO14001 Certification.

Climate Goals & Targets

Environmental Challenges

• Navigating the complex and frequently revised Russian legal system.
• Managing raw material procurement from new Russian domestic suppliers.

Mitigation Strategies

• Established a legal, compliance, and internal control department.
• Uses external consultants for difficult issues.
• Cooperates with YRC’s procurement department for fair handling of raw material procurement.

Supply Chain Management

Responsible Procurement

• Working to handle matters fairly in cooperation with YRC’s procurement department.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• BluEarth-AE01

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse emissions by 20% in 2015 compared to 1990 in Japan; exceeded target for reducing waste per unit of production for the fourth consecutive year; achieved zero landfill waste at all Japanese plants and 12 of 16 overseas plants; 98.3% of products fulfilled environmental impact criteria by the end of 2015.
• Planted 466,390 trees by the end of 2015 (93% of 2017 target) under the Yokohama Forever Forest project.

Social Achievements

• Launched new lines of golf clubs; two Yokohama-sponsored golfers won prominent tournaments; hosted the eighth Yokohama Tire Golf Tournament PRGR Ladies Cup; various community engagement activities at multiple locations (e.g., tree planting, litter cleanup, educational support).

Governance Achievements

• Increased the number of independent members of the Board of Directors to three from two; established operational protocols to prevent malfeasance; maintained hotlines to handle reports of suspected infractions (50 inquiries and consultations in 2015).

Climate Goals & Targets

Environmental Challenges

• Unit decline in Japanese vehicle production and escalating price competition in tire markets; global slowdown in natural resources development and slowing economic growth in China; demand downturn in Japan’s construction equipment sector; price competition in overseas markets; weakening of the yen.

Mitigation Strategies

• Measures for promoting sales, raising operational efficiency, and lowering costs; winning new fitments on several vehicle models by promoting strengths in fuel-saving tires; launching appealing new products in replacement tires; expanding production capacity; hedging exposure to currency exchange rates; mudadori cost-cutting activities.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, ISO 26000

Sustainable Products & Innovation

• Fuel-saving tires
• New egg and SUPER egg golf clubs

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Products
• The Earth
• People
• Community

Environmental Achievements

• Adoption of photovoltaic (PV) solar power generation system at Yokohama Tire Philippines, Inc., reducing CO2 emissions by approximately 3.5%
• Formulation of Yokohama Rubber’s Procurement Policy for Sustainable Natural Rubber
• Agroforestry initiative by Y. T. Rubber Co., Ltd. to foster sustainable agro-forestry techniques
• Alliance 344 Forestar ELIT tire launched, reducing soil compaction in forested areas

Social Achievements

• Support for local communities through collaboration with Chelsea F.C., providing soccer schools for children in various countries
• Various seminars on balancing work responsibilities with childcare or senior care responsibilities
• Introduction of a Working from Home System and a system allowing employees to take annual leave in hourly units
• Expansion of Career Return System for former employees wishing to return after childcare or nursing care responsibilities
• Educational support for five primary schools in villages near the Dahej Plant in India

Governance Achievements

• Strengthening of corporate governance structure, including increase in number of Outside Directors and decrease in number of Internal Directors
• Introduction of a compensation plan with restricted stock
• Establishment of a Risk Management Committee
• Implementation of compliance education and introduction of whistleblower hotlines

Climate Goals & Targets

Environmental Challenges

• Occupational accidents and small-scale fires
• Water resource management in India
• Maintaining sustainable natural rubber procurement

Mitigation Strategies

• Messages to employees on safety, dialog with managers, emphasis on personal safety responsibility
• Adoption of water recycling systems in Indian factories, rainwater collection and management by Alliance Tire Group
• Formulation of Procurement Policy for Sustainable Natural Rubber, collaboration with universities and suppliers in Thailand, cyclic water purification system at Y. T. Rubber Co., Ltd.

Supply Chain Management

Supplier Audits: 100% on new business partners for child labor and forced labor

Responsible Procurement

• Procurement Policy for Sustainable Natural Rubber

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Droughts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• BluEarth tires
• Alliance 344 Forestar ELIT tire
• ECOTEX energy-saving conveyor belt

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Protection
• Quality Management
• Human Rights
• Gender Equality
• Employment of People with Disabilities
• Fair Operating Practices
• Community Involvement

Environmental Achievements

• 3% reduction in industrial waste compared to 2020
• 3% reduction in energy use compared to 2020
• Maintenance of zero emissions
• Recognized as an "Environmental Education Base"

Social Achievements

• Recognized as a "Safety Model Company"
• Recognized as a "Hangzhou Healthy Company"
• Actively employs people with disabilities
• Commended as a model company employing people with disabilities in Hangzhou in fiscal 2017
• 50% of department general managers are female
• 20% of section managers are female
• Participated in tree planting event at the "Forever Forest"

Governance Achievements

• Enhanced basic system for internal control with no incidents of misconduct
• Monthly CSR education for section managers and above
• Passed the revised audit for OSHMS certification
• Obtained Japanese Occupational Safety and Health Management System (OSHMS) Certification

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting activities and gatherings
• Stringent environmental regulations in China

Mitigation Strategies

• Implemented alternative communication methods (e.g., in-house broadcast for safety reminders)
• Strengthened quarantine measures for plant tours
• Continued compliance with environmental regulations and inspections
• Implemented preventive measures against environmental pollution

Supply Chain Management

Responsible Procurement

• Purchasing department of parent company mainly deals with supplier selection

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Coexistence with Nature
• Human Rights
• Diversity & Inclusion
• Workstyle Reforms
• Corporate Governance
• Community Engagement

Environmental Achievements

• Increased cumulative CO2 absorption and fixation volume by 16% year on year to 1,576 tons.
• Improved emissions per unit of sales by 8% year on year for Scope 1 + Scope 2.
• Improved emissions per unit of sales by 6% year on year for Scope 3.
• Improved waste volume per unit of sales by 11% year on year.
• Improved energy consumption per unit of sales by 9% year on year.
• Improved water intake per unit of sales by 13% year on year.

Social Achievements

• Increased percentage of women employed in comprehensive work positions (non-consolidated) by 16 points year on year to 41%.
• Maintained rate of lost-worktime injuries at 0.20 per million work hours.
• Increased number of employees taking childcare leave to 237.
• Increased percentage of managerial positions filled by women (consolidated) by 1.17 points year on year.
• Supported Laojunshan Project in China, focusing on biodiversity preservation and community development.
• Provided medical assistance in response to the COVID-19 pandemic in Japan.

Governance Achievements

• Established Yokohama Rubber Group Human Rights Policy.
• Strengthened compliance system with monthly workplace training and a global whistle-blowing system.
• Improved risk management system with cross-sectoral risk assessment and response.
• Introduced medium-term performance-linked remuneration system for directors and executive officers.

Climate Goals & Targets

Environmental Challenges

• Sharply rising raw material prices and logistics expenses.
• Disruptions to international logistics networks.
• COVID-19 pandemic.
• Climate change risks (transition and physical risks).
• Social issues such as human rights violations in the supply chain.
• Maintaining safety and quality in the workplace.

Mitigation Strategies

• Price hikes in the tire business (primarily in North America).
• Ongoing depreciation of the yen.
• Timely response to regional demand swings.
• Established medium-to-long-term environmental targets (carbon neutrality, circular economy, coexistence with nature).
• Implemented risk assessments and safety measures.
• Developed safety-conscious human resources.
• Strengthened compliance system and risk management.
• Introduced workstyle reforms and health and productivity management.

Supply Chain Management

Responsible Procurement

• Procurement Policy for Sustainable Natural Rubber.
• CSR procurement guidelines.

Climate-Related Risks & Opportunities

Physical Risks

• Increased occurrence of serious natural disasters.
• Extreme weather conditions depleting natural resources.

Transition Risks

• Increased energy costs.
• Capital investment to improve manufacturing efficiency.
• Increased R&D and procurement costs for sustainable raw materials.
• Changes in product demand.

Opportunities

• Enhanced competitiveness through carbon neutral compliance.
• Early response to EV-mounted performance requirements.
• Provision of environmentally friendly products.
• Increased demand for products and services for disaster prevention and recovery.

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), Guidance for Collaborative Value Creation (Ministry of Economy, Trade and Industry, Japan), TCFD Recommendations

Certifications: ABINC Office in Harmony with Nature® certification (5 sites)

Sustainable Products & Innovation

• Biomass-derived butadiene rubber for tires.
• Sensor tires.
• Fuel-efficient tires.

Awards & Recognition

• 34th SRIJ Award (research and development of rubber materials using sustainable resources).

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: International Integrated Reporting Framework from the IFRS Foundation, Guidance for Collaborative Value Creation from the Ministry of Economy, Trade and Industry

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Circular Economy
• Biodiversity
• Human Capital
• Sustainable Supply Chain
• Governance

Environmental Achievements

• Greenhouse gas emissions (Scope 1 & 2) decreased year on year, with Scope 1 emissions decreasing 9.3% and Scope 2 emissions decreasing 17%
• Greenhouse gas emissions (Scope 3) decreased 4% year on year
• Total waste volume decreased 5% year on year
• Introduced electricity derived from renewable energy at the Shinshiro-Minami Plant, reducing CO2 emissions by approximately 570 tons annually
• Yokohama Rubber’s Ibaraki Plant certified by the Ministry of the Environment as a “Nationally Certified Sustainably Managed Natural Site”
• Y.T. Rubber Co., Ltd. obtained Chain of Custody (CoC) certification from FSC®

Social Achievements

• Percentage of women employed in comprehensive work positions (non-consolidated) rose 4 points year on year to 20%
• Percentage of female employees and managerial positions filled by women increased year on year
• Introduced the Partner & Familyship System, accepting same-sex and common-law partners as spouses
• Held a Human Rights Due Diligence Workshop to identify and assess potential human rights risks in the supply chain
• Conducted questionnaire surveys and interviews with foreign workers in Japan to assess their working environment

Governance Achievements

• Transitioned governance structure from a company with an Audit & Supervisory Board to a company with an Audit and Supervisory Committee
• Strengthened investor engagement through IR events
• Sold all shares held in six companies and some shares in ten companies to improve capital efficiency

Climate Goals & Targets

Environmental Challenges

• Competition from Chinese tire makers
• Supply chain disruptions
• Climate change impacts (extreme weather, resource depletion)
• Stringent environmental regulations
• Human rights issues in the supply chain
• Maintaining profitability while implementing sustainability initiatives

Mitigation Strategies

• Implementing the “1-year plant” challenge to achieve low cost and high efficiency
• Maximizing the ratio of high value-added products
• Developing alternative sourcing strategies
• Strengthening manufacturing sites against extreme weather
• Conducting human rights due diligence in the supply chain
• Ensuring environment-related investments conform to normal investment recovery standards

Supply Chain Management

Supplier Audits: 667 natural rubber farms surveyed by end of 2023; aiming for 1300 by 2030; 57 new suppliers in Japan assessed in 2023 with no adverse environmental or social impacts

Responsible Procurement

• Yokohama Green Procurement Guidelines
• CSR Procurement Guidelines
• Procurement Policy for Sustainable Natural Rubber
• Declaration of Partnership Building

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing equipment damage or shutdown
• Raw material procurement difficulties due to supply chain disruptions
• Depletion of natural rubber due to climate change

Transition Risks

• Increased energy costs due to renewable energy use
• Increased R&D investment required to improve product performance
• Changes in demand for products and services due to stricter regulations

Opportunities

• Increased demand for environmentally friendly products
• New business opportunities through next-generation mobility
• Reduced energy costs by improving manufacturing process efficiency

Reporting Standards

Frameworks Used: TCFD, TNFD, GRI Standards, UN Global Compact

Certifications: ISO 14001, ISO 45001, FSC® CoC, TISAX, ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ADVAN Sport EV
• 507U
• 120U
• Retread tires
• ADVAN A005 dry racing tires (made with sustainable materials)

Awards & Recognition

• ABINC Award of Excellence (Ibaraki Plant)