In its aim to achieve net-zero greenhouse gas (GHG) emissions by fiscal year 2050, Yokogawa is advancing emissions reductions across its entire supply chain.
In recognition of our emissions reduction targets and initiatives, which are aligned with the Paris Agreement’ s 1.5 °C goal*1, we have obtained validation of our Net-Zero*2 target from the Science Based Targets initiative (SBTi).
Further, regarding Scope 1 and Scope 2 emissions, we have set a target of achieving carbon neutrality in fiscal year 2030 as a sustainability metric in the GS2028 medium-term business plan. To achieve this target, the entire group is working together to reduce emissions.
⋆1 1.5°C target: A goal to limit the increase in the global average temperature to well below 2°C above pre-industrial levels, and as close to 1.5°C as possible. This is stipulated in the Paris Agreement.
⋆2 Net-Zero: The plan is to reduce Scope1,2 and 3 GHG emissions by 90%, with the remaining 10% of emissions expected to be offset through carbon credits.
Yokogawa’s GHG Reduction Targets
| Yokogawa Group Reduction Targets | SBTi-Validated Targets | |
|---|---|---|
| Scope 1 + Scope 2 |
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| Scope 3 |
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| Scope 1 + Scope 2 + Scope 3 | — |
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⋆3 The plan is to reduce GHG emissions by 90%, with the remaining 10% of emissions expected to be offset through carbon credits.
⋆4 Reductions in Category 1 (purchased goods and services) and Category 11 (use of sold products).
Scope1 and 2
Reduction Targets and Achievements
In fiscal year 2025, while our business activities expanded year-on-year, the Yokogawa Group achieved significant reduction in GHG emissions (Scope 1 and 2) by 31.3% year on year and 59.9% compared to the base year of fiscal year 2019. This progress was driven by key initiatives involving “Reduce” initiatives aimed at lowering energy consumption and “Replace” initiatives focused on transitioning to clean energy sources. These results were made possible through the group-wide investments of around 340 million yen*5 across around 80 projects to support these initiatives, which reflect our collective efforts to advance technology, develop knowledge, and promote emission reduction projects throughout the Group.
| Metric | GHG emissions Scope1 and 2 (base year FY2019) |
|---|---|
| Target | Achieve carbon neutrality by FY2030⋆5 ⋆5 The plan is to reduce GHG emissions by 90%, with the remaining 10% of emissions expected to be offset through carbon credits. |
| Performance | 59.9% reduction (FY2025) |
Initiatives to Reduce GHG Emissions
Yokogawa aims to achieve the targets for carbon neutrality through three key initiatives: to “Reduce” our energy consumption, “Create” our own renewable energy, and “Replace” sources of energy procurement with clean energy. To achieve the targets, we have clarified group-wide initiatives and roadmaps, and applies Internal Carbon Pricing (ICP) as a metric to evaluate the economic rationality of investments. In addition, GHG- and energy-related metrics are incorporated into both the executive compensation system and the employee performance management framework.
Group-wide Initiative
| “Reduce” Energy-Saving |
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|---|---|
| “Create” Create own renewable energy |
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| “Replace” Shift to sourcing renewable energy sources |
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Roadmap for Reducing GHG Emissions
By promoting three key approaches — ‟Reduce,” “Create,” and “Replace” — we will steadily advance emissions reductions and aim to achieve carbon neutrality by Fiscal year 2030.
The roadmap formulated in Fiscal year 2023
(1) Reduce Energy Consumption
Metric and Target for Energy Consumption Efficiency
Yokogawa is planning to expand facilities to support business growth toward fiscal year 2030, and anticipates a significant increase in energy consumption. Meanwhile, in response to rising global expectations for improved energy efficiency and increasing energy procurements costs, we need to continue generating greater value with less energy. To drive efficiency improvements across the Group, Yokogawa has introduced an energy efficiency metric and set a target to reduce energy consumption (intensity per sales)⋆6 by 30% by fiscal year 2030, compared to fiscal year 2023. In fiscal year 2024, we achieved 14.3% reduction in energy consumption (intensity per sales) compared to the previous fiscal year, and reduced annual energy costs by 100 million yen by implementing energy reduction measures across the Group company. We will continue to pursue both “energy efficiency improvement” and “value expansion” at the same time as part of our initiatives to achieve the target.
⋆6Calculated based on energy consumption converted to primary energy and consolidated sales
| Metric | Energy consumption (Intensity per sales, base year FY2023) |
|---|---|
| Target | 30% reduction (FY2030 target) |
| Performance | 34.8% reduction (FY2025) |
(2)Create and (3)Replace : Creation and Procurement of Power from Renewable Energy Sources
Actual Consumption of Power from Renewable Energy Sources
As of the end of March 2025, renewable energy-sourced power is used across 36 sites in 21 countries: Germany, Netherlands, the United Kingdom, Belgium, Spain, Italy, China, South Korea, Thailand, Singapore, Indonesia, Malaysia, Australia, Brazil, India, Bahrain, Saudi Arabia, the United Arab Emirates, the Republic of South Africa, Oman, and Japan. The proportion of group-wide electricity consumption from renewable energy sources increased dramatically to 42% in fiscal year 2024.
Implementation of Internal Carbon Pricing（ICP）
Since fiscal year 2022, we began operating the ICP to advance economically rational GHG emissions reduction initiatives. We make decisions based on the impact of GHG emissions by incorporating the expected changes in emissions into our financial evaluation when planning GHG and energy reduction measures. We set a carbon price (ICP type: implicit price; price: 2,000 yen/t-CO2) across the entire Group to promote investments in renewable electricity procurement that significantly contribute to reducing Scope 2 emissions. The ICP policy and carbon price are approved after deliberation by the Sustainability Committee. We will progressively apply the ICP by setting carbon prices for Scope 1, Scope 3, and business planning processes such as capital investment decisions.
Incorporation into the Compensation and Target Management Systems
The targets for reducing Scope 1 and 2 emissions and improving energy consumption efficiency are incorporated as key indicators within the compensation system for Vice President & Executive Officers. Through the performance management process, these targets are cascaded from Executive Officers to relevant organizational members and drive coordinated efforts across the Group to achieve the goals.
Please see the Executive Compensation here
Scope3
Reduction Targets and Performance
In fiscal year 2025, we achieved a 0.7% reduction in emissions in Scope 3 (total of Categories 1 and 11) compared to the baseline year of fiscal year 2019. On the other hand, emissions increased by 3.3% compared to the previous fiscal year. The main factor in this increase was a 7.4% increase in Category 1 emissions caused by rising procurement costs and increased procurement volumes. On the other hand, in Category 11, sales of products with high GHG emissions per unit decreased due to the postponed investment by customers in the battery market, which led to a 3.1% reduction in emissions compared to the previous fiscal year.
| Metric | Scope 3 GHG emissions (Base year: FY2019) |
|---|---|
| Target | 30% reduction by FY2030 (vs.FY2019)⋆7 Achieve carbon neutrality by FY2050⋆8 ⋆7: Reductions in Category 1 (purchased goods and services) and Category 11 (use of sold products). ⋆8: The plan is to reduce GHG emissions by 90%, with the remaining 10% of emissions expected to be offset through carbon credits. |
| Performance | 0.7% reduction (FY2025)*7 ⋆7: Applicable to Category 1 (Purchased Goods and Services) and Category 11 (Use of Sold Products). |
Initiatives to Reduce GHG Emissions
In Scope 3, Yokogawa aims to reduce emissions from purchased goods and services (Category 1) and use of sold products (Category 11) by 30% compared to fiscal year 2019 by fiscal year 2030 and to achieve carbon neutrality in all categories of Scope 3 by fiscal year 2050.
As Category 1 and Category 11 accounted for approximately 90% of Scope 3 emissions, we have designated them as priority reduction areas to advance our initiatives.
In Category 1, we are advancing initiatives to reduce emissions through collaboration with suppliers, while in Category 11, we are working to reduce the power consumption of existing products and develop low-GHG emission products and solutions. As Scope 3 reductions are difficult to achieve in the short term, we are advancing continuous reduction activities based on a long-term roadmap.
Purchased goods & services (Category 1)
Category 1 emissions had previously been calculated by multiplying procurement expenditures by emission intensity published in external databases. However, this method posed a challenge because reduction efforts could not be reflected in the calculation results. Therefore, by strengthening dialogue and engagement with our business partners, since fiscal year 2024, we have been able to obtain actual GHG emissions results (primary data) from some of our major suppliers and reflect them in the calculation of Category 1 emissions.
In fiscal year 2025, we expanded the proportion of primary data used in the calculation of Category 1 emissions to 6%. Additionally, third-party certified data accounted for 5% of Category 1 emissions. Going forward, in cooperation with our business partners, we will work to expand the proportion of primary data and enhance the reliability of our calculations.
Use of sold products (Category 11)
We are working to improve the design of existing products, prioritizing those with a major impact on emissions, by switching to components with lower power consumption, optimizing product weight, and adding power-saving modes. We are also promoting energy-saving design in the development of new products. Further, we are working to improve the accuracy of calculations of the amount of energy used by products by using actual operational energy consumption instead of maximum power consumption values.
Battery Web Gauge ES-5 | Yokogawa Electric Corporation
Information Disclosure Based on TCFD Recommendations
In February 2019, Yokogawa expressed its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which was established by the Financial Stability Board (FSB) to promote the disclosure of climate-related financial information. Yokogawa makes disclosures based on the TCFD framework.
Information Disclosure Based on TCFD Recommendations | Yokogawa Electric Corporation