Sustainability Management

Our aim is "Sharing Passion & Performance”

The Corporate Philosophy of the Yamaha Group is, "With our unique expertise and sensibilities, gained from our devotion to sound and music, we are committed to creating excitement and cultural inspiration together with people around the world."

Based on this philosophy, Yamaha conducts its sustainability activities according to the following guidelines, seeking to contribute to the sustainable development of society and to further strengthen the bond of trust with its stakeholders through sound, transparent management methods, and corporate activities that balance social and environmental concerns:

1. By creating new values through products and services focused on social and environmental issues, Yamaha contributes to the sustainable development of society.
2. Through business development and social contributions based in each region of the globe, Yamaha contributes to the promotion and popularization of music, and to the development of communities.
3. By understanding the significance of protecting the natural environment and maintaining biodiversity, and by promoting the reduction of environmental burden through measures such as sustainable procurement of timber and lowering greenhouse gas emissions, Yamaha works to maintain a healthy global environment.
4. Yamaha observes laws, ordinances, and social norms, and moreover, conducts business in a fair and impartial manner throughout the entire value chain, including activities such as socially responsible procurement carried out in cooperation with business partners.
5. Yamaha endeavors to prevent abuses of human rights, responding appropriately to the effect of its business activities as well as to any attendant risks to human rights, with the goal of achieving a society that safeguards the dignity of all.
6. Yamaha works to create an atmosphere that holds in high regard the employee diversity that is a source of the new values created within the company, and which allows each person to fully demonstrate their sensibilities and creativity through training and use, without regard to race, nationality, gender, or age.

Formulated in February 2010 and revised in July 2018.

Languages: Japanese / English / Chinese / Indonesian

Sustainability Management: Basic Policy

The mission of the Yamaha Group is to continue to create excitement and cultural inspiration together with people around the world by utilizing the assets, various resources, unique expertise, and sensibilities originating from sound and music. To put this philosophy into practice, Yamaha is working to understand the impact of its business activities on the environment and society and pursue dialogue with stakeholders while overcoming challenges toward the creation of a sustainable society.

[Sustainability Issues in the Value Chain] [Engagement with Stakeholders]

Initiatives Related to Sustainable Development Goals

The Yamaha Group seeks to contribute to the accomplishment of the United Nations Sustainable Development Goals (SDGs), a set of shared goals embraced by the international society, through its business. In addition to efforts to contribute to Goal 4 (Quality Education) through music initiatives, Yamaha is also working to help accomplish Goal 12 (Responsible Consumption and Production) and Goal 15 (Life on Land) by procuring timber from sustainable sources. Yamaha is developing products and services and improving business processes with an awareness of the SDGs.

The Sustainable Development Goals (SDGs) are a set of 17 global goals adopted by the United Nations in 2015, designed to be a 'blueprint to achieve a better and more sustainable future for all'.

Promotion of Sustainability Priorities

Yamaha has established sustainability priorities for the medium-to-long term based on the impact of its business activities on the environment and society, as well as stakeholder expectations and social demands.

Priority Identification Process

1. Identification of Sustainability Issues: Identification of sustainability issues within the Yamaha Group value chain based on ISO 26000 (an international guidance on social responsibility) and the SDGs.
2. Evaluation of Importance of Issues from the Perspectives of Stakeholders: Evaluation of importance of identified issues considering feedback from customers, employees, local communities, ESG evaluation items, opinions from NGOs, and advice from outside experts.
3. Evaluation of Importance within Yamaha: Evaluation of importance of identified issues considering Yamaha's management vision and medium- to long-term management policies.
4. Identification of Sustainability Priorities: Selection of issues warranting a strong approach based on evaluation results, followed by identification of sustainability priorities through discussion among senior management.

After identifying sustainability priorities, targets and key performance indicators (KPIs) were set by relevant divisions and the Sustainability Division. Action plans were formulated, approved by senior management, and are monitored annually by the Managing Council.

Diagram description: Diagram showing Society's sustainable development and continuous growth of Yamaha, with stakeholders providing feedback to the Sustainability Policy and Yamaha Philosophy, leading to Basic Sustainability Initiatives and a Management foundation (corporate governance, internal control, compliance, risk management).

Sustainability Priorities and Progress

Development of products and services with a focus on social/environmental issues

Response to societal issues (Culture/Society):

• Music Culture and Education: Developed music instruments for performing traditional music, released regional models for the Indian market, and conducted local surveys in Indonesia and the Middle East.
• Universal Design: Released a multilingual simultaneous interpretation guide feature for SoundUD™. Achieved SoundUD Consortium membership of 322 companies and organizations. Received the Grand Award of IAUD International Design Awards 2019 for SoundUD Consortium. Conducted verification tests of the new Remote Cheerer system. Raised the ratio of touch screen-equipped electronic musical instruments with voice readout functionality to 75%.
• Health and Safety Solutions: Launched five new headphones and earphones equipped with Listening Care function for reducing burden on ears.
• Workplace: Communicated telework examples and promoted understanding regarding remote communication and teleworking.
• Remote Solutions: Unveiled SYNCROOM, an online remote ensemble performance service.

Response to environmental issues (Environment):

• Certified 46 models of Yamaha Eco-Products (aggregate total of 425 models, 18% of sales).
• Commenced joint assessments with automobile manufacturers of thermoelectric power generation modules that can utilize waste heat.
• Promoted development of organic solvent-free coating technology.
• Promoted development of alternatives for scarce timber resources.

Support for spread of instrumental music education

Fiscal 2020 Progress: Delivered musical instrument performance experiences to an aggregate total of 390,000 people in 1,500 schools across five countries. Provided opportunities for approximately 7,500 students from 77 schools in seven countries in Africa and the Middle East to play musical instruments. Donated musical instruments and provided education support to five migrant worker schools in China (total of 60 schools).

Development of regional community-based business and social contribution activities

Fiscal 2020 Progress: Held musical instrument maintenance seminars for 36 organizations in six countries in Latin America (total of 40 seminars) and seminars for cultivating repair technicians for 27 individuals. Commenced trial initiatives in two new candidate countries. Conducted seven new support initiatives as part of a project to build communities through music (Oto-Machi).

Lowering of greenhouse gas emissions

Fiscal 2020 Progress: Acquired certification for medium- to long-term emissions reduction targets from the Science-Based Targets initiative (SBTi). Began sourcing power from renewable energy. Upgraded to high-efficiency air-conditioning equipment and switched to LED lighting. Advanced logistics downsizing initiatives. Received third-party greenhouse gas emission verification.

Response to climate change (Environment)

Fiscal 2020 Progress: Declared endorsement of Task Force on Climate-related Financial Disclosures (TCFD) recommendations and began disclosing information based on recommendations.

Sustainable procurement of timber (Environment)

Fiscal 2020 Progress: Improved timber due diligence (DD) system. Conducted DD on all timber purchased, judging 98.8% as low risk. Increased forecast for certified timber ratio. Examined possibility of switching to lower-risk timber. Began procuring African blackwood from supported areas in Tanzania and advanced tree-planting projects. Conducted investigation of link between site environment and tree growth. Assessed social impact of initiatives.

Promotion of 3R in products (Environment)

Fiscal 2020 Progress: Downsized packaging and examined low-environment impact packaging/cushioning materials. Investigated measures for reducing and eliminating use of plastic shopping bags. Set long-term roadmap for product 3R initiatives. Began offering piano retrofitting services.

Systematic initiatives for the respect of human rights

System/framework development (Society): Completed addition of human rights management items to Yamaha Group Policies and Rules. Published human rights education booklets and conducted meetings. Held power harassment prevention seminars.

Supply chain CSR management (Society): Performed simultaneous assessments of 3,748 suppliers. Conducted assessments of 117 new suppliers. Held seminars for suppliers.

Global human resources management (Society): Established core positions and globally uniform grading standards.

Promotion of diversity and human resources development

Empowerment of female employees and accommodation of diverse workstyles (Society): Introduced teleworking systems for childcare/nursing care. Established childcare facilities. Converted shortened workhour systems to flextime. Increased ratio of female managers to 16.3%. Established helplines and revised rules.

Efforts to promote understanding and support of the LGBT community (Society): Conducted Companywide seminars, prepared handbooks, distributed Yamaha LGBT Ally logo stickers. Awarded gold in the PRIDE INDEX.

The Make Waves 1.0 medium-term management plan defines social contribution through business as an important strategy and sets KPI targets related to spreading instrumental music education and procuring sustainable timber.

Sustainability Awareness Raising

The Yamaha Group aims to promote sustainability among all members. Training, seminars, and the intranet site are used to educate employees and raise awareness. Since fiscal 2018, understanding of SDGs has been promoted through posters, newsletters, and internal events.

Images description: Images show the sustainability information site on the company intranet, posters and company newsletters introducing the SDGs, a sustainability education course as part of new recruit training, a lecture explaining the SDGs to managers, and an SDGs exhibition at a company event.

Participation in Initiatives

Yamaha signed the UN Global Compact in June 2011 and adheres to its Ten Principles. Yamaha actively participates in subcommittees of Global Compact Network Japan.

[UN Global Compact]

Engagement with Stakeholders

Basic Policy

Yamaha engages with various stakeholders: customers, shareholders, investors, employees, business partners, communities, and the environment. Promises include "customer-oriented and quality-conscious management," "transparent and sound management," "valuing people," and "harmony with society." Dialogue is used to learn opinions and reflect input. Opinions are also solicited from NPOs, NGOs, and outside experts. Yamaha participated in the Caux Round Table Japan Stakeholder Engagement Program to identify human rights issues.

Diagram description: Diagram showing opportunities/methods for dialogue with major stakeholders: Customers, Shareholders and Investors, Employees, Business Partners, Communities, and The Environment, all interacting with the Yamaha Group.

Customers

Aim: Inspire and satisfy customers. Major responsibilities: provide safe/peace-of-mind products, promote universal design, provide information/service/support. Daily communication: product/service help desks, sales activities. Examples: [Improvement of Customer Satisfaction], [Customer Response and Support Improvement].

Shareholders and Investors

Aim: Actively disclose management information and engage in continuous communication. Major responsibilities: disclose accurate information, distribute profit, maintain/improve corporate value. Daily communication: general shareholders' meetings, investor website/newsletters. Examples: [Information Disclosure (Communication with Shareholders and Investors)].

Employees

Respect independence and sensitivity, create environments for creativity. Major responsibilities: evaluate/treat people fairly, respect human rights/diversity, utilize/train personnel, support work styles, ensure health/safety. Daily communication: management awareness surveys, labor-management meetings. Examples: [Communication with Employees].

Business Partners (suppliers, clients, and subcontractors)

Viewed as partners. Strive to deepen mutual understanding and build trust. Major responsibilities: select based on standards, engage in fair transactions, eliminate dubious relationships, prohibit abuses of power. Daily communication: business activities, trend briefings, policy meetings, surveys. Examples: [Promotion of Social Responsibility in the Value Chain].

Communities

Comply with laws, regulations, international standards, and give attention to environmental preservation and human rights. Participate in activities contributing to community/culture development. Major responsibilities: coexist with communities, contribute to development (culture, training, welfare, employment, skills). Daily communication: info exchange with communities/municipalities, factory tours, employee involvement. Examples: [Connections with Local Communities], [Contribution to Regional Community Development].

The Environment

The environment is the foundation for sustainable societies. Preserve environment, maintain biodiversity, reduce environmental burden. Major responsibilities: pollution prevention, climate change mitigation, preserve natural resources, manage chemical substances, protect biodiversity. Daily communication: exchange of information and dialog with communities and NPOs/NGOs.

Sustainability Issues in the Value Chain

The Yamaha Group provides various products and services, including musical instruments. Yamaha is fulfilling its social responsibilities by addressing issues related to the value chain, focusing on the impact of its products, services, and production processes on society and the environment.

Diagram description: Diagram illustrating Yamaha's value chain, starting with 'Requests and expectations from society', moving through 'Development' (creating innovative technologies, developing products/services focusing on environmental/social issues), 'Procurement' (recognizing/improving impact, contributing to local economy, materials procurement, conflict minerals, socially responsible procurement), 'Production and logistics' (stable production, reducing environmental burden, labor practices, safety, environment protection, chemical substances, saving resources, health/safety at work, accident prevention), 'Sales and usage' (high-quality products, universal design, response to regional needs, after-sales services, ensuring safety, marketing, information, advertising, equitable provision, sustainable consumption, corruption prevention, fair competition), and ending with 'Maintenance and recycling' (proper disposal, collection, recycling, human resources development for maintenance). The diagram also highlights 'Sustainability issues' and 'Sustainability priorities' across the chain.

The 10 Principles of the United Nations Global Compact

The United Nations (UN) Global Compact, proposed in 1999, consists of 10 universally accepted principles in the areas of human rights, labor, the environment, and anti-corruption. Companies signing the Global Compact pledge their commitment to work consistently to achieve these objectives. Yamaha signed in June 2011 and cooperates with the Global Compact Network Japan.

Human Rights

• Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights.
• Principle 2: Businesses should ensure that they are not complicit in human rights abuses.

Labor

• Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
• Principle 4: Businesses should ensure the elimination of all forms of forced and compulsory labor.
• Principle 5: Businesses should ensure the effective abolition of child labor.
• Principle 6: Businesses should ensure the elimination of discrimination in respect of employment and occupation.

Environment

• Principle 7: Businesses should support a precautionary approach to environmental challenges.
• Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility.
• Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption

• Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.