In keeping with the belief that Yokogawa’s raison d'etre is to present solutions that solve environmental and social issues, we have formulated Yokogawa's Purpose, a statement that reads, "Utilizing our ability to measure and connect, we fulfill our responsibilities for the future of our planet." Based on this, we have prioritized the issues we will address to attain sustainability and set short-, mid-, and long-term sustainability targets.
As described below, these priorities and related targets have been incorporated in the AG2023 mid-term business plan for the period commencing with fiscal year 2021. The previous targets in the TF2020 were taken over in the new targets.
Priority sustainability issues
In accordance with Yokogawa's Purpose, we are mindful of our responsibility for the future of our planet, and our business has a significant positive impact on society and the environment. The contributions we make to society and the environment have a direct bearing on our corporate value. Accordingly, when formulating the AG2023 mid-term business plan, we identified businesses that could make a significant contribution toward the Sustainable Development Goals (SDGs) and increase our corporate value, and determined ‘priority issues for contributing toward the SDGs.’ And by utilizing external environmental, social, and governance (ESG) evaluations, we analyzed social needs and the importance of various issues to our company and set ‘priority issues for reinforcing sustainability management.’
These priorities can be expected to change over time, so we will remain flexible in our approach. The Board of Directors will oversee the incorporation of these priority issues in our business strategies and examine whether our business is being run in a manner that is consistent with Yokogawa's Purpose.
Priority issues for contributing toward the SDGs
In the process of examining the strategies for AG2023 plan, we first considered what impact they could have in enhancing our corporate value and business models in light of certain megatrends and anticipated market developments, and then analyzed the impact that we could have on society and the environment in our business focus areas and own organization. Based on this analysis, we defined six areas where we can contribute toward the SDGs and defined which issues will be prioritized in our business.
Priority issues for reinforcing sustainability management
In our evaluations, we used as benchmarks major ESG indices that factor in society’s changing needs and performed a dynamic and objective assessment of our strengths and points to be improved, and engaged in a continuous improvement cycle. Currently, we are focusing with four priority issues: climate change and greenhouse gases, supply chains, human resources and women's empowerment, and human rights.
Based on our prioritization of issues, we have established ‘social impact indicators’ for the year 2030 and ‘business activity indicators’ for the year 2023. By making progress toward the targets that have been set for the ‘business activity indicators’, we aim to achieve the targets for the ‘social impact indicators’, which are an indication of the contribution we are making to society and the environment.
With the ‘business activity indicators’, targets have been set for important activities addressed in the AG2023 plan that will accelerate growth and contribute to society and the environment. The executive-level individuals who are assigned responsibility for these activities will implement them by making sure that they are applied to each organization within the Group. The indicators and targets will be reviewed as appropriate in response to changes in the external environment.
Social impact indicators
The following table shows the social impact indicators and targets for 2030. These address priority issues in six areas that will contribute to the achievement of the SDGs.
|Contribution area||SDGs||Indicator||FY30 (FY40) target|
|Achieving carbon neutrality||CO2 emissions control amount through customers (accum. from FY18)||1 billion t-CO2
(50% or more from renewable energy and new technologies)
|GHG emissions (Scope1,2) (base year FY19)||50% reduction by FY30
100% reduction by FY40
|GHG emissions (Scope3)||Targets that meet SBT(Science Based Target) requirements|
|Improving efficiency in society & industry||Economic value created by improving customer productivity efficiency||2 trillion yen|
|Optimizing plant lifecycle & protecting environment||Number of plants/factories where Yokogawa has contributed to sustainable operations||20,000 plants|
|Improving health & safety||Total number of people whose health & safety have been enhanced through solutions provided by Yokogawa's customers||100 million people|
|Creating a resource-recycling ecosystem||Status of the new businesses launched that contribute to the resource recycling system||Establishment of two or more new resource recycling system business|
|Creating workplaces where people can fulfill their potential||Engagement to enhance employee well-being||At a level comparable to other leading companies|
|Achievements in human resource development and capacity development for transformation||Advancing employee's future skill set (Skills to play active role in new businesses and new areas)|
|Achievement level of diversity and inclusion||Proportion of women in managerial positions 20%
Enhanced diversity at senior decision-making levels
Business activity indicators
The following table shows the business activity indicators and targets for 2023 that will contribute to the achievement of the targets that have been set for the social impact indicators.
|Contribution area||Focus area||SDGs||Indicator||FY23 target|
|Achieving carbon neutrality||Support renewable energy infrastructure||CO2 emissions control amount through customers (accum. from FY18)||500 million t-CO2|
|Measuring instruments for renewable energy development||Sales growth rate of measurement instrument to renewable energy customers(base year FY20)||2.2 times|
|Support storage battery manufacturing||Growth rate of number of units shipped of battery electrode thickness gauge (base year FY20)||1.5 times|
|(within Yokogawa) GHG reduction at Yokogawa sites and in supply chain||GHG emissions (Scope1,2) (base year FY19)||10% reduction|
|GHG emissions (Scope3)||Targets that meet SBT requirements|
|Improving efficiency in society & industry||Smart manufacturing business (Consultation, ERP, MES, EMS)||Order intake growth rate of smart manufacturing business (base year FY20)||1.3 times|
|Value chain optimization for pharmaceutical and food customers (Consultation, ERP, MES, EMS)||Order intake growth rate of pharmaceutical and food value chain optimization business (base year FY20)||1.3 times|
|(within Yokogawa) Internal DX promotion||Reduction of business operation hours by automation(base year FY18)||300,000 hours reduction|
|Optimizing plant lifecycle & protecting environment||Long-term optimal operation solutions of the plant||Number of life cycle support contracted plants||6,000 plants|
|Remote services/ Asset management||Order growth rate of number of wireless asset health monitoring sensor units (base year FY20)||3.2 times|
|Number of equipment maintenance management system contract licenses||8,000 licenses|
|Environmental equipment and analyzers||Order intake growth rate of process analyzer (base year FY20)||1.3 times|
|(within Yokogawa) Reduction of Yokogawa's environmental footprint||Water withdrawal amount at Yokogawa sites (base year FY19)||4% reduction|
|Improving health & safety||Plant safety instrument system||Number of safety instrumented systems provided||157 systems|
|Plant operator training simulator||Number of plant operator training systems provided||30 systems|
|Life science business pharmaceuticals and food||Sales growth rate of drug discovery development support products (base year FY20)||2.5 times|
|Lifeline, water and sewage businesses||Number of solutions provided for water environment improvement (excluding Japan)||90 solutions|
|(within Yokogawa) Occupational health and safety of workers at Yokogawa||ISO45001 certification acquisition record||Acquisition at major companies( 12 companies)|
|Creating a resource-recycling ecosystem||Contributing to functional chemical and biochemical industries, Supporting efficiency improvement of the recycling businesses||Order intake growth rate for specialty & fine chemical industry (base year FY20)||1.6 times|
|(within Yokogawa) Creating a new ecosystem as a theme|
|Creating workplaces where people can fulfill their potential||(within Yokogawa) Employee well-being & engagement||Engagement survey score||81%|
|(within Yokogawa) People capability development for change||Training hour per person||40 hour per year per person|
|(within Yokogawa) Promotion of diversity & inclusion||Female manager ratio||12.5%|
|Employment rate of disabled persons (Japan)||2.5%|