Tokyo, Japan - February 4, 2020
Yokogawa Electric Corporation (TOKYO: 6841) announces that it has made it onto CDP's Water Security A List and Supplier Engagement Leader Board. The A listing is for the company's sustainable water management practices and disclosure of information on these activities, and the selection to the leader board is for the company's leadership in engaging with its suppliers around the world to reduce carbon emissions and combat global warming.
The CDP is a highly-respected non-profit organization whose annual environmental disclosure and scoring process is widely recognized as the gold standard of corporate environmental transparency. In 2019, 525+ investors with over US$96 trillion in assets and 125 major purchasers with US$3.6 trillion in procurement spending requested companies to disclose data on environmental impacts, risks and opportunities through CDP's platform, and over 8,400 responded.
The CDP employs a detailed and independent methodology to assess and rank companies from A to D- based on the comprehensiveness of their disclosure, their awareness and management of environmental risks, and their demonstration of best practices associated with environmental leadership, such as setting ambitious and meaningful targets. Companies that do not disclose information or provide insufficient information receive an F.
For the CDP leader board, over 4,800 companies were assessed and given a Supplier Engagement Rating based on answers to selected questions about scope 3 emissions and the reduction of environmental risk in supply chains in a 2019 climate change questionnaire. Yokogawa is one of almost 160 companies on the leader board this year.
Yokogawa has formulated three goals for sustainability that it will strive to achieve by the year 2050. These call for the achievement of net-zero emissions, ensuring the well-being of all, and the establishment of a circular economy. To make the transition to a circular economy, solutions to water resource issues must be found. To guide its efforts in this area, the company has established the number of water solutions that it provides to its customers and the amount of water used at each of its sites as key performance indicators (KPIs). Recent contributions in this area include the provision of a control system for a seawater desalination project in Peru (2018) and the provision of a digital twin-based plant simulation solution to the operators of a water treatment facility in Singapore (2019).
Regarding climate change Yokogawa provides solutions to its customers and engages in emissions reduction initiatives at its sites with the goal of achieving net-zero emissions, and is using a CO2 reduction KPI to gauge the effectiveness of its efforts.
Also, in 2019 Yokogawa endorsed the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) as part of its commitment to addressing the challenges of climate change, and based on this disclosed information on its climate change risks and opportunities in the 2019 Yokogawa Sustainability Report.
Hitoshi Nara, the Yokogawa president and chief executive officer, comments as follows about these initiatives: "As called for in the Yokogawa corporate philosophy, we aim to make full use of our measurement, control, and information technologies to provide solutions that will help to resolve pressing issues such as climate change and the need for secure access to water resources. We will continue working with our customers all over the world to provide them with solutions that facilitate the use of low-carbon power sources, improve energy efficiency, and enhance water security."
Paul Simpson, CEO of CDP: "Congratulations to the companies that achieved a position on CDP's A List this year, for leading in environmental performance and transparency. The scale of the business risks from the climate emergency, deforestation and water insecurity are vast - as are the opportunities from addressing them - and it's clear the private sector has a vital role to play at this critical time. The A List companies are leading the market in corporate sustainability, tackling environmental risks, and setting themselves up to thrive in tomorrow's economy."
The full methodology and criteria for the Water Security A List are available in the CDP scoring methodologies 2019 section on the CDP website: https://www.cdp.net/en/guidance/guidance-for-companies.
The Water Security A List is published by CDP each year, alongside the A Lists for leadership on climate change and protecting forests. The full list of companies that made this year's CDP Water Security A List, along with other publicly available company scores, is available at https://www.cdp.net/en/companies/companies-scores.
The full list of the 159 companies that earned a place on the CDP Supplier Engagement leader board is available at https://www.cdp.net/en/research/global-reports/changing-the-chain?#supplier-engagement.
CDP is a global non-profit that drives companies and governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests. Over 8,400 companies, representing over 50% of global market capitalization, disclosed environmental data through CDP in 2019. This is in addition to the over 920 cities, states and regions who disclosed, making CDP's platform one of the richest sources of information globally on how companies and governments are driving environmental change. CDP is a founding member of the We Mean Business Coalition. Visit https://cdp.net/en or follow us @CDP to find out more.
Founded in 1915, Yokogawa engages in broad-ranging activities in the areas of measurement, control, and information. The industrial automation business provides vital products, services, and solutions to a diverse range of process industries including oil, chemicals, natural gas, power, iron and steel, and pulp and paper. With the life innovation business, the company aims to radically improve productivity across the pharmaceutical and food industry value chains. The test & measurement, aviation, and other businesses continue to provide essential instruments and equipment with industry-leading precision and reliability. Yokogawa co-innovates with its customers through a global network of 113 companies spanning 60 countries, generating US$3.6 billion in sales in FY2018. For more information, please visit www.yokogawa.com.
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