Priority issues and targets

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.

Priority issues for the SDGs

 

Sustainability targets

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.

Overview of sustainability targets

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 GOAL 7 AFFORDABLE AND CLEAN ENERGY GOAL 13 CLIMATE ACTION 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 GOAL 2 ZERO HUNGER GOAL 7 AFFORDABLE AND CLEAN ENERGY GOAL 8 DECENT WORK AND ECONOMIC GROWTH GOAL 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE GOAL 12 SUSTAINABLE CONSUMPTION AND PRODUCTION Economic value created by improving customer productivity efficiency 2 trillion yen
Optimizing plant lifecycle & protecting environment GOAL 6 CLEAN WATER AND SANITATION GOAL 8 DECENT WORK AND ECONOMIC GROWTH GOAL 12 SUSTAINABLE CONSUMPTION AND PRODUCTION GOAL 14 LIFE BELOW WATER Number of plants/factories where Yokogawa has contributed to sustainable operations 20,000 plants
Improving health & safety GOAL 3 GOOD HEALTH AND WELL-BEING GOAL 6 CLEAN WATER AND SANITATION GOAL 8 DECENT WORK AND ECONOMIC GROWTH GOAL 11 SUSTAINABLE CITIES AND COMMUNITIES 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 GOAL 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE GOAL 12 SUSTAINABLE CONSUMPTION AND PRODUCTION GOAL 13 CLIMATE ACTION GOAL 14 LIFE BELOW WATER GOAL 15 LIFE ON LAND 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 GOAL 5 GENDER EQUALITY GOAL 8 DECENT WORK AND ECONOMIC GROWTH 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 GOAL 7 AFFORDABLE AND CLEAN ENERGY GOAL 13 CLIMATE ACTION CO2 emissions control amount through customers (accum. from FY18) 500 million t-CO2
Measuring instruments for renewable energy development GOAL 7 AFFORDABLE AND CLEAN ENERGY GOAL 13 CLIMATE ACTION Sales growth rate of measurement instrument to renewable energy customers(base year FY20) 2.2 times
Support storage battery manufacturing GOAL 7 AFFORDABLE AND CLEAN ENERGY GOAL 13 CLIMATE ACTION 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 GOAL 7 AFFORDABLE AND CLEAN ENERGY GOAL 13 CLIMATE ACTION 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) GOAL 7 AFFORDABLE AND CLEAN ENERGY GOAL 8 DECENT WORK AND ECONOMIC GROWTH GOAL 12 SUSTAINABLE CONSUMPTION AND PRODUCTION 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) GOAL 2 ZERO HUNGER GOAL 8 DECENT WORK AND ECONOMIC GROWTH GOAL 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE GOAL 12 SUSTAINABLE CONSUMPTION AND PRODUCTION Order intake growth rate of pharmaceutical and food value chain optimization business (base year FY20) 1.3 times
(within Yokogawa) Internal DX promotion GOAL 8 DECENT WORK AND ECONOMIC GROWTH 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 GOAL 12 SUSTAINABLE CONSUMPTION AND PRODUCTION Number of life cycle support contracted plants 6,000 plants
Remote services/ Asset management GOAL 8 DECENT WORK AND ECONOMIC GROWTH GOAL 12 SUSTAINABLE CONSUMPTION AND PRODUCTION 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 GOAL 6 CLEAN WATER AND SANITATION GOAL 14 LIFE BELOW WATER Order intake growth rate of process analyzer (base year FY20) 1.3 times
(within Yokogawa) Reduction of Yokogawa's environmental footprint GOAL 6 CLEAN WATER AND SANITATION GOAL 12 SUSTAINABLE CONSUMPTION AND PRODUCTION GOAL 14 LIFE BELOW WATER Water withdrawal amount at Yokogawa sites (base year FY19) 4% reduction
Improving health & safety Plant safety instrument system  GOAL 8 DECENT WORK AND ECONOMIC GROWTH GOAL 11 SUSTAINABLE CITIES AND COMMUNITIES Number of safety instrumented systems provided 157 systems
Plant operator training simulator GOAL 8 DECENT WORK AND ECONOMIC GROWTH GOAL 11 SUSTAINABLE CITIES AND COMMUNITIES Number of plant operator training systems provided 30 systems
Life science business pharmaceuticals and food GOAL 3 GOOD HEALTH AND WELL-BEING Sales growth rate of drug discovery development support products (base year FY20) 2.5 times
Lifeline, water and sewage businesses GOAL 6 CLEAN WATER AND SANITATION Number of solutions provided for water environment improvement (excluding Japan) 90 solutions
(within Yokogawa) Occupational health and safety of workers at Yokogawa GOAL 8 DECENT WORK AND ECONOMIC GROWTH 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 GOAL 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE GOAL 12 SUSTAINABLE CONSUMPTION AND PRODUCTION GOAL 13 CLIMATE ACTION GOAL 14 LIFE BELOW WATER GOAL 15 LIFE ON LAND 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 GOAL 5 GENDER EQUALITY GOAL 8 DECENT WORK AND ECONOMIC GROWTH Engagement survey score 81%
(within Yokogawa) People capability development for change GOAL 5 GENDER EQUALITY GOAL 8 DECENT WORK AND ECONOMIC GROWTH Training hour per person 40 hour per year per person
(within Yokogawa) Promotion of diversity & inclusion GOAL 5 GENDER EQUALITY GOAL 8 DECENT WORK AND ECONOMIC GROWTH Female manager ratio 12.5%
Employment rate of disabled persons (Japan) 2.5%

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