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
- 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 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.
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 |   |
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 |     |
Economic value created by improving customer productivity efficiency | 2 trillion yen |
| Optimizing plant lifecycle & protecting environment |   |
Number of plants/factories where Yokogawa has contributed to sustainable operations | 20,000 plants |
| Improving health & safety |   |
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 |  |
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 |  |
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 | |
CO2 emissions control amount through customers (accum. from FY18) | 500 million t-CO2 |
| Supporting distribution, storage, and utilization of renewable energy | |
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 | |
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 | |
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) | |
Order intake growth rate of pharmaceutical and food value chain optimization business (base year FY20) | 1.3 times | |
| (within Yokogawa) Operational optimization | |
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 | |
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 | |
Order intake growth rate of process analyzer (base year FY20) | 1.3 times | |
| (within Yokogawa) Reduction of Yokogawa's environmental footprint (water, biodiversity) | |
Water withdrawal amount at Yokogawa sites (base year FY19) | 4% reduction | |
| Improving health & safety | Supporting safety and security of plant and workers | |
Number of safety instrumented systems provided | 157 systems |
| Number of plant operator training systems provided | 30 systems | |||
| Life science business | |
Sales growth rate of drug discovery development support products (base year FY20) | 2.5 times | |
| Supporting lifeline, water and sewage businesses | |
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 | |
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 | |
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 | |
Engagement survey score | 81% |
| (within Yokogawa) People capability development for change | |
Training hour per person | 40 hour per year per person | |
| (within Yokogawa) Promotion of diversity, equity & inclusion | |
Women manager ratio | 12.5% | |
| Employment rate of disabled persons (Japan) | 2.5% |