Contribution areas 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.

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.

Setting contribution areas based on materiality analysis

We defined 'materiality’ as importance for both "social/environmental impact" and "impact on the company's value creation and business model". At the first Sustainability Committee held in July 2022, we conducted the materiality analysis. As a result, we confirmed that the priority issues which were important both for the company and the society and were to be resolved by the company, and the six contribution areas, would not need to be changed from the time of establishing AG2023.

Process of materiality analysis

  1. Conducted analysis covering all business activities which aimed at creating corporate value (and preventing damage), with items related to business opportunities and management respectively.
  2. 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.
  3. Reviewed the appropriateness and completeness of focus areas from the perspective of stakeholders.
  4. 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

Three goals and six contribution areas
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 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.

indicators for six contribution areas

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*) (base year FY19)
*Emissions from purchased products/services (Category1) and emissions from use of sold products (Category11)
30% reduction by FY30
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 Supporting power generation by renewable energy GOAL 7 AFFORDABLE AND CLEAN ENERGY GOAL 13 CLIMATE ACTION CO2 emissions control amount through customers (accum. from FY18) 500 million t-CO2
Supporting distribution, storage, and utilization of renewable energy  
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
Growth rate of number of units shipped of battery electrode thickness gauge (base year FY20) 1.7 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*) (base year FY19)
*Emissions from purchased products/services (Category1) and emissions from use of sold products (Category11)
10% reduction
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 (MES, LIMS, EQMS) 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) Operational optimization GOAL 8 DECENT WORK AND ECONOMIC GROWTH Reduction of business operation hours by automation(base year FY18) 300,000 hours reduction
Digitization rate of operation process 63%
Optimizing plant lifecycle & protecting environment Supporting long-term optimal operation solutions of the plant GOAL 8 DECENT WORK AND ECONOMIC GROWTH GOAL 12 SUSTAINABLE CONSUMPTION AND PRODUCTION Number of life cycle support contracted plants 6,000 plants
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 8,500 licenses
Supporting reduction of environmental footprint of the plant 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 (water, biodiversity) 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 Supporting safety and security of plant and workers   
GOAL 8 DECENT WORK AND ECONOMIC GROWTH GOAL 11 SUSTAINABLE CITIES AND COMMUNITIES
Number of safety instrumented systems provided 157 systems
Number of plant operator training systems provided 30 systems
Life science business GOAL 3 GOOD HEALTH AND WELL-BEING Sales growth rate of drug discovery development support products (base year FY20) 2.5 times
Supporting 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, respect for human rights GOAL 8 DECENT WORK AND ECONOMIC GROWTH ISO45001 certification acquisition record Acquisition at major companies( 12 companies)
Creating a resource-recycling ecosystem Contributing to specialty chemical and biochemical industries, Supporting efficiengy 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
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, equity & inclusion GOAL 5 GENDER EQUALITY GOAL 8 DECENT WORK AND ECONOMIC GROWTH Women manager ratio 12.5%
Employment rate of disabled persons (Japan) 2.5%

Sus