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. We continue to set sustainability goals in our new medium-term business plan "GS2028," which started in 2024.
Setting contribution areas based on materiality analysis
We define 'materiality’ as importance for both "social/environmental impact" and "impact on the company's value creation and business model." In the previous mid-term business plan AG2023, which was formulated in 2021, Yokogawa selected important issues that are to be resolved by the company, and contribution areas and theme based on a survey of stakeholders in each business. When formulating GS2028, we also conducted a materiality analysis and reaffirmed areas where Yokogawa contribution.
Process of materiality analysis
- Conducted analysis covering all business activities which aimed at creating corporate value (and preventing damage), with items related to business opportunities and management respectively.
- Evaluated the materiality of individual items from two aspects; social and environmental impact (social axis) and impact on corporate value creation and business model (business axis). Then we selected focus areas.
- Reviewed the appropriateness and completeness of focus areas from the perspective of stakeholders.
- Confirmed the appropriateness of the issues to be solved (priority issues) and themes of contribution (contribution areas) based on the selected focus areas.
Six contribution areas and priority issues
| Contribution area | Priority issue |
|---|---|
| Achieving carbon neutrality | Reducing GHG emissions and enabling the transition to affordable, reliable, and sustainable forms of energy |
|
Improving efficiency in society & industry |
Optimizing production, enabling autonomy, and facilitating the efficient use of resources and energy through DX |
| Optimizing plant lifecycle & protecting environment | Supporting both the long-term optimal operation of plant assets and the reduction of their environmental footprint |
| Improving health & safety | Promoting life-related innovation and improving safety in plants and communities |
| Creating a resource-recycling ecosystem | Fostering the development of the bioeconomy and a circular economy |
| Creating workplaces where people can fulfill their potential | Establishing an equal opportunity workplace where employees can be treated with dignity and fulfill their potential |
Sustainability targets
Based on our prioritization of issues, we have set targets ‘social impact indicators’ for the year 2030,and ‘business activity indicators’and ‘sustainability transition sales’ for the year 2028. 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 GS2028 plan that will accelerate growth and contribute to society and the environment. Each executive officer who is assigned responsibility for indicator and implement activities 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
For each of the six priority issues, we have set indicators and targets for 2030 from the perspective of social impact, as shown in the table below.
| Contribution area | SDGs | Indicator | FY30 (FY50) 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) | 100% reduction by FY30 | ||
| GHG emissions (Scope3) (base year FY19) | 30% reduction by FY30* 100% reduction by FY50 *Emissions from purchased products/services (Category1) and emissions from use of sold products (Category11) |
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| Improving efficiency in society & industry |     |
Economic value created by improving customer productivity efficiency | 2 trillion yen by FY30 |
| Energy intensity (energy consumption / sales, base year FY23) | 30% improvement by FY30 (average 5% improvement per year) |
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| Optimizing plant lifecycle & protecting environment |   |
Number of plants/factories where Yokogawa has contributed to sustainable operations | 20,000 plants by FY30 |
| Water intensity (water withdrawals / sales, base year FY23) | 20% reduction by FY30 | ||
| Improving health & safety |   |
Total number of people whose health & safety have been enhanced through solutions provided by Yokogawa's customers | 100 million people by FY30 |
| Frequency rate of occupational accidents (number of lost time accidents and no lost time accidents / aggregate number of work-hours × 1,000,000) | 0.40 or less by FY30 | ||
| Creating a resource-recycling ecosystem |  |
Indicators for sustainable raw material | To be determined in the first year of the mid-term business plan |
| Creating workplaces where people can fulfill their potential |  |
Engagement to enhance employee well-being | 84% or more by FY30 |
| Achievements in human resource development and capacity development for transformation | Advancement of employee ability to fulfill future requirement for Yokogawa’s future. （including skill improvement） | ||
| Achievement level of diversity, equity & inclusion | Proportion of women in managerial positions: 20% by FY2030 Increase diversity in upper decision-making levels |
Business activity indicators
To achieve the social impact targets, we will set indicators and goals such as sales for 2028 for each business segment.
Sustainability Transition Sales
In order to expand our contribution to sustainability while promoting business growth, we will calculate sales from business activities in six areas of contribution as sustainability transition sales. We will set our own criteria based on international sustainability standards, and sales from businesses that meet these criteria will be caluculated as sustainability transition sales. We will increase the proportion of sustainability transition sales in our overall sales toward 2030.