Our Approach to Sustainability / Promotion Framework
Policy
Sustainability Policy
Under the mission of “Our Steel, Your Future,” Yamato Kogyo Group aims to create more value for an even richer society through our steel business. Based on this philosophy, we regard sustainability initiatives as an important management issue. We will support the development of each country and region and the future of its people, thereby contributing to the realization of a sustainable society through our business activities.
◆ Identification of Materiality and Promotion of Initiatives
To achieve sustainability management that balances the realization of a sustainable society with the sustainable growth and enhancement of the corporate value of our group, we have identified themes that we consider highly important for our group and stakeholders as materiality. Since materiality is an issue that should be prioritized as a medium- to long-term risk or opportunity, we incorporate it into our management strategy and Medium-term Sustainability Plan and put this policy into practice through our business activities.
◆ Our Sustainability Management
We define sustainability management as the “sustainable growth of a company while maintaining the environment and society, which are the foundation of our business” and are committed to the following points.
- To continue to be demanded by the market over the long term
We will maintain and improve our competitiveness and realize a sustainable society by fully assessing the market and business environment and responding promptly and appropriately based on future projections. - To maintain supply (raw materials, human resources, and intellectual property) over the long term
We will practice a circular economy through our recycling business, which utilizes steel scrap as a resource and revives it as new steel products.
We will develop human resources so that human resources with a diverse range of skillsets can work as “One Team” beyond race, age, or gender, and sustainably create high-added-value products and services.
As professionals in Steel and Trackwork business, we will further advance our manufacturing technologies in the Steel and Trackwork businesses to solve social and environmental issues and create economic value. - To be trusted by society
We will provide world-class products and services with the highest safety standards in mind.
We will be honest and maintain the highest level of ethical standards.
Sustainability Promotion Structure
The Group has established a Sustainability Committee for the purpose of advancing sustainability efforts
concretely. The committee is chaired by the Representative Director and President of Yamato Kogyo and
comprises selected directors, including outside directors, as well as the Representative Directors and
Presidents of domestic consolidated subsidiaries. Directors, executive officers, and auditors may attend as
observers as necessary. The committee deliberates sustainability issues, formulates, manages and evaluates
activity plans, and reports
important matters to the Board of Directors and other matters to the Management Committee, so that both
deliberative bodies can provide appropriate oversight of sustainability-related risks and opportunities.
The Sustainability Committee convened twice in fiscal 2025.
Sustainability Promotion Structure
Identifying Materiality
Materiality Approach
Under Vision 2030, the Group aims to be a company that achieves and solidifies its position as the global leader in structural steel and continues to embrace challenges in new business areas. Realizing this requires sustainability management where sustainable growth goes hand in hand with maintenance and enhancement of business foundations. Toward realization of sustainability management, themes that are highly important for the Group and its stakeholders are defined as materiality. Policies and challenges for realizing business growth for Vision 2030 and foundations supporting their growth are specified as materiality. By incorporating these into the Group’s management strategies and Medium-Term Sustainability Plan and addressing them through business activities, we will strive to improve corporate value, solve social issues and create a prosperous future.
Materiality Identification Process
The Group has identified materiality and promoted activities steadily from a medium-term perspective since it set up the Sustainability Committee in 2020. We reconsidered materiality in 2025 on the basis of changes in external environments and Vision 2030 formulated in 2023. In reconsideration, we expanded the scope into the whole Group including overseas consolidated subsidiaries and focused on linking materiality to business strategies. We then redefined materiality, including issues for realizing business growth in addition to traditional issues about business foundations. The process of identifying materiality is as in the figure below.
Based on the above process, we have specified 15 materiality and divided them into three categories: Business growth Vision 2030, Business growth Priority strategies, Foundations for growth. For specified materiality, see the following link.
Medium-term Sustainability Plan
For each of the materiality specified, we have defined Target state, set KGIs and KPIs for realizing it and
initiatives for each business segment, and formulated the Medium-Term Sustainability Plan. For formulation of
the plan, a project team including business units has considered KPIs and measures to implement in order to
make the plan effective.
The progress of KPIs is monitored periodically, and the Sustainability Committee reports and deliberates it
and reconsiders it if necessary. For the details of targets and results, see the following link.
Medium-term Sustainability Plan
Promoting the understanding and spread of sustainability internally
To realize sustainability management, we believe it is important that all employees as well as the promotion
department work together. We recognize that as each individual understands the significance of sustainability
and practices it through business activities, it leads to the growth of the Group and the sustainable
development of society.
For this reason, the Group regularly provides orientation training and study sessions for employees to promote
understanding of sustainability. For employees including management and managers, the Group also provides
opportunities of training by outside lecturers on an as-needed basis. In addition, the Group provides
information via an intranet every month to raise the level of knowledge of all employees about sustainability.