Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption through energy-saving manufacturing processes and a “low-energy” lifestyle.
• Developed a system to quickly track products’ chemical content (2007) and a system to confirm suppliers’ environmental, human rights and labor practices (2013).
• Developed high-insulation windows and curtain walls capable of helping buildings save energy.
• Implemented non-welding installation method for window sashes to reduce environmental burdens from construction.
• Promoting 3R initiatives (reduction, reuse and recycling of waste).
• Initiated Scope 3 emissions assessment, identifying 70% of emissions from raw material and capital goods procurement.

Social Achievements

• Launched the YKK ASIA Group Kids Football Clinic (2007).
• Provided local residents with free annual medical examinations.
• Participated in river cleanup activities.
• Assisted local students with their graduation projects.
• Promotes the efficient use of water resources (e.g., rainwater storage and infiltration facility in 2012).
• Implemented the “Zero Claims Project” focusing on enhancing product quality and improving the quality of day-to-day business conduct.
• Launched the “IT’S NOT JUST A ZIP/IT’S NOT JUST A SNAP” campaign highlighting sustainability management and community contributions.
• Established a sustainable gardening project in Swaziland to address food security and health.

Governance Achievements

• Strengthened global environmental management system.
• Implemented periodic internal audits to examine the status of environmental management system.
• Conducted intraregional cross audits to maintain and enhance legal compliance and minimize environmental risk.

Climate Goals & Targets

Environmental Challenges

• Supply chain emissions (Scope 3) accounting for 70% of total emissions.
• Growing concerns about potential health risks posed by residues from hazardous substances used in production and poor working conditions in developing countries.
• Worsening atmospheric and water pollution across China.

Mitigation Strategies

• Promoting greenhouse gas reduction initiatives in each business segment, with particular focus on procurement practices.
• Expanding the scope of integrated quality management to cover the entire manufacturing process beginning with procurement.
• Implementing stringent wastewater management and water saving measures.
• Participating in river cleanup activities.
• Regularly monitoring the volume of substances emitted and their routes of emission.
• Installing pH measurement devices on rainwater outlets to ensure that no polluted water is released.

Supply Chain Management

Responsible Procurement

• System to confirm suppliers’ environmental, human rights and labor practices (2013).
• Supplier evaluations to ensure responsiveness to regulations such as the Restricted Substance List (RSL) and conflict minerals regulations.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• High-insulation windows
• Curtain walls
• Products with superior water- and fire-proof properties
• EXCELLA® Curve metallic zipper

Awards & Recognition

• OEKO-TEX® Sustainability Award (2013)
• 2013 Macon Industry of the Year Award
• 2013 Environmental Legacy Award from Dublin municipal government

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• YKK80 building received Platinum LEED certification and ASHRAE Technology Award; Completed processing of all high-concentration PCB-containing equipment; Developed waterless dyeing technology "ECO-DYE"
• Reduced CO2 emissions through various initiatives (Specific numbers not provided in easily extractable format)

Social Achievements

• Supported Suzhou Industrial Park Boai School (a special education and rehabilitation institution for children with disabilities) in China; Provided a learning environment through the acceptance of business school students in Germany; Sponsored the All Japan Boys' Soccer Tournament; Launched "Monodzukurikan by YKK" workshops

Governance Achievements

• Established a review committee to support activities in various areas and enhance overall understanding; Implemented a global governance system for human rights and labor practices; Strengthened supplier CSR surveys

Climate Goals & Targets

Environmental Challenges

• Counterfeiting and piracy; Harmful substances in manufacturing processes; Labor issues in the supply chain; Decreasing new housing starts in Japan; Stagnant Chinese real estate market; Impact of e-commerce on the apparel supply chain; Global uncertainties due to protectionism and trade policy changes

Mitigation Strategies

• Strengthened brand protection activities in collaboration with customers; Reduced harmful substances in products and manufacturing processes; Strengthened supplier CSR surveys; Developed high-value-added products and created new demand; Improved energy efficiency of products; Enhanced safety and health measures

Supply Chain Management

Supplier Audits: 103 companies (Japan), 5 companies (China), 4 companies (Taiwan), 3 companies (Taiwan - audits)

Responsible Procurement

• Supplier CSR surveys, Focus on harmful substance reduction, Traceability systems

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Regulatory changes related to climate change and environmental protection

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: ISO 26000

Certifications: LEED Platinum (YKK80 building), BELS 5-star (YKK80 building), SEGES Excellent Stage 3 (YKK Center Park), Bluesign Product Certification (YKK Taiwan)

Sustainable Products & Innovation

• ECO-DYE waterless dyeing technology, High-performance windows (APW series)

Awards & Recognition

• Good Design Award (ECO-DYE), 25th Earth Environment Award (APW series), ASHRAE Technology Awards (YKK80 building)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 7.2% in 2019 compared to 2018.
• Achieved 43.6% renewable energy share in Japan in 2019.
• Developed NATULON® Ocean Sourced™ material from recycled ocean-bound plastic.

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• NATULON® Ocean Sourced™
• GreenRise®
• ECO-DYE®
• AiryString®

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Material Resources
• Water Resources
• Chemical Management
• Respect People

Environmental Achievements

• Scope 1 and 2 GHG emissions: 46.9% reduction from 2018 baseline
• Scope 3 GHG emissions: 20.9% reduction from 2018 baseline
• Renewable energy ratio of all power consumption: 46.1%
• 31 locations running on 100% renewable energy
• 21 locations using solar power generation systems
• Waste recycling rate: 87.3%
• Water intake: 14% reduction compared to 2018

Social Achievements

• Abolition of mandatory retirement age in Japan
• Implementation of hybrid tiered training, next-generation leader training, coaching and facilitation training
• Introduction of Life Design Support Leave Program
• Promotion of flexible work styles
• Increased female management rate

Governance Achievements

• Strengthened corporate governance system
• Appointment of Chief Risk Management Officer (CRO) and Compliance Director
• Establishment of various risk committees
• Updated YKK Group Code of Conduct
• Implementation of YKK Global Criteria of Compliance (YGCC) audits

Climate Goals & Targets

Environmental Challenges

• Higher operation costs due to potential carbon tax increases
• Increased production costs due to EU Plastics Strategy
• Costs associated with the global shift to renewable energy
• Risk of losing sales opportunities due to unmet environmental requirements
• Potential decrease in demand for winter clothing due to rising temperatures
• Risk of reputational damage due to delayed climate initiatives
• Risk of flood damage to factories
• Higher air-conditioning costs and rising raw material prices

Mitigation Strategies

• Introduction of internal carbon pricing system
• Capital investments in energy-saving and solar power generation equipment
• Broadening sales of products using recycled plastics
• Development of technologies to reduce manufacturing costs
• Market analyses and accurate forecasting of consumer demand
• Formulation and announcement of YKK Sustainability Vision 2050
• Development of guidelines to minimize flood damage
• Development of technology to reduce manufacturing and running costs
• Building systems to secure raw materials and resources

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• CSR procurement questionnaires
• Site visits and interviews
• Basic Principles of Procurement

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Rising temperatures

Transition Risks

• Carbon taxes
• EU Plastics Strategy
• Shift to renewable energy
• Customer and regulatory requirements

Opportunities

• Expanding products using recycled materials
• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, UN Global Compact, ILO

Certifications: ISO 14001, ISO 45001, ISO 9001, OEKO-TEX® STANDARD 100, bluesign® system partner, SBTi 1.5°C Target

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• NATULON® series (recycled polyester)

Awards & Recognition

• Numerous awards listed in the report

Environmental Metrics

ESG Focus Areas

• Climate Change
• Material Resources
• Water Resources
• Chemical Management
• Respect for People

Environmental Achievements

• Reduced Scope 1+2 GHG emissions by 56.2% from FY2018 baseline
• Reduced Scope 3 GHG emissions by 32.7% from FY2018 baseline
• Increased renewable energy ratio of all power consumption to 56.5%
• 37 locations running on 100% renewable energy
• 38% proportion of sustainable materials (total meters) in FY2023
• 91.9% waste recycling rate in FY2023
• YKK JAPAN Company (Kurobe Manufacturing Center) switched to FSC®-certified packaging
• Established in-house recycling technology for copper and zinc alloys
• YKK Center Park’s Furusato-no-Mori (Hometown Forest) designated as a Nature Coexistence Site
• 25% of brass sliders produced using AcroPlating® technology (eliminating hazardous substances)

Social Achievements

• Launched employee engagement survey in 2023
• 76% of employees showed understanding and empathy towards the CYCLE OF GOODNESS® (2024 survey)
• Transferred Global Sales Headquarters’ functions to Vietnam to be closer to customers
• YKK ASAO Kid’s Football Clinic supported healthy growth of children
• Provided support for earthquake-affected communities in Turkey
• Supported environmental improvements at a local elementary school in Mexico
• Supported local children in China through donations and interaction
• Supported a social enterprise in Italy (Quid)

Governance Achievements

• Organizational restructuring to a flat structure in FY2021
• Established Global Brand Strategy Department and Digital Business Operation Department in FY2024
• Established YKK Group Supplier Reporting Contact Point Human Rights Grievance Hotline
• Updated YKK Global Criteria of Compliance (YGCC) to version 4.1 in FY2024
• Improved internal audit structure and enhanced information disclosure

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (flooding, heat waves, raw material price increases)
• Geopolitical risks
• Sluggish garment market
• Supply chain disruptions
• Increasing demand for sustainability
• Need to respond to customer demands for 'right time, right material, right amount'

Mitigation Strategies

• GHG emission reduction targets aligned with the Paris Agreement (carbon neutrality by 2050)
• Shifting to sustainable materials and packaging
• Improving manufacturing methods and equipment
• Promoting renewable energy
• Organizational restructuring for faster response to market changes
• Strengthening cost competitiveness
• Promoting digitalization
• Developing eco-friendly products
• Improving supply chain resilience

Supply Chain Management

Supplier Audits: 1,663 companies surveyed for YKK RSL compliance

Responsible Procurement

• YKK Restricted Substance List (RSL)
• YGCC audits
• Supplier engagement on sustainability

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Heat waves

Transition Risks

• Carbon tax
• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Expansion of products using recycled and sustainable materials
• Adoption of renewable energy

Reporting Standards

Frameworks Used: TCFD

Certifications: SBTi

Sustainable Products & Innovation

• NATULON® zippers
• AcroPlating® technology
• Revived Renewal Series

Awards & Recognition

• CDP Climate Change A List (2023)
• CDP Supplier Engagement Rating highest rating (FY2022 and FY2023)
• METI Minister Award (Intellectual Property Achievement Award)