Six contribution areas
Based on the results of the materiality analysis, we have set six contribution areas in order to achieve the sustainability goals of the “Three Goals,” which are the vision for society toward 2050.GS2028 focuses on business activities that contribute to six areas, aiming to expand contributions to society and environment and achieve dramatic business growth.
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 |
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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 |
We will promote the expansion of our contribution to society and environment through medium to long term “social impact indicators.” In addition, we will promote business growth through “business activity indicators” set for each business and “sustainability transition sales,” which measure the business volume of growth areas that contribute to the sustainability of the Group.
Sustainability Indicators for the Three Goals
| Target Year | Item | Description |
|---|---|---|
| 2050 | Three Goals | Yokogawa's vision for society |
| 2030 | Social Impact Indicators | Indicators set from the perspective of long-term social impact for the priority issues in the six contribution areas. |
| 2028 | Sustainability Transition Sales | Calculate the sales of businesses in growth areas that contribute significantly to sustainability transitions in order to promote business growth while also expanding contributions to sustainability. |
| 2028 | Business Activity Indicators | Define focus areas for promoting sustainability transitions and set targets for each business. |
Social impact indicators
We will further accelerate contribution while continuing to use the “Social Impact Indicators” established in the previous medium-term Business plan.
We conduct materiality analysis when setting each indicator.
>> Click here for materiality analysis
| 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 consumption (Intensity per 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 |
Calculation of social impact indicators
We aggregate the difference between customers’ CO2 emissions from renewable energy-related business or low-carbon energy production, and average CO2 emissions from fossil fuels usage, then record is as a result.
| Area of contribution | Indicator | Calculation method |
|---|---|---|
| Achieving carbon neutrality | CO2 emissions control amount through customers (accum. from FY18 to FY30) |
The CO2 emissions difference between customers’ CO2 emissions from renewable energy-related business or low-carbon energy production, and average CO2 emissions from fossil fuels usage |
| Greenhouse gas emissions (Scope 1, 2)(base year: FY2019) | Calculate based on the GHG protocol | |
| Greenhouse gas emissions (Scope 3)(base year: FY2019) | ||
| Improving efficiency in society & industry | Economic value created by improving customer productivity efficiency |
Calculated by estimating the amount of productivity improvement benefits for customers to whom Yokogawa provides products and services |
| Energy consumption (Intensity per sales, base year FY2023) | Calculated by dividing the group's energy consumption by consolidated sales. | |
| Optimizing plant lifecycle & protecting environment | Number of plants/factories where Yokogawa has contributed to sustainable operations | The amount of water supplied to the water purification plant contributed by Yokogawa, is converted to the amount of water required for daily life per person, then record is as a result. |
| Water withdrawals (Intensity per sales, base year FY2019) | Calculated by dividing the group’s water withdrawals by consolidated sales | |
| Improving health & safety | Total number of people whose health & safety have been enhanced through solutions provided by Yokogawa’s customers | The amount of water supplied to the water purification plant contributed by Yokogawa, is converted to the amount of water required for daily life per person, then record is as a result. |
| Total reportable incidents frequency rate | Number of accidents / aggregate number of work-hours × 1,000,000 | |
| Creation a resource-recycling ecosystem | Indicators related to sustainable raw materials | To be decided during FY2024 |
| Creating workplaces where people can fulfill their potential | Engagement to enhance employee well-being | Global employee engagement survey scores for the result |
| Achievements in human resource development and capacity development for transformation | Monitor progress using the human resources portfolio satisfaction rate in the business CMUs and training hours per person. | |
| Achievement level of diversity, equity & inclusion |
Proportion of women in managerial positions |
Sustainability Transition Sales and Focus Area
In the GS2028, we will measure the sustainability transition sales amount in areas expected to grow and contribute to sustainability. We have set focus areas that contribute to sustainability transitions for each business segment and have already started activities. As we grow our business, we will increase the ratio of sustainability transition sales amount from the current 40% to 50% by fiscal year 2028.
Business Activity Indicators
Define focus areas for promoting sustainability transitions and set targets for each business.