Environmental Vision 2030/2050 (Japan) / Medium-term Sustainability Plan
Environmental Vision 2030/2050 (Japan)
We recognize that addressing climate change issues is one of the most important themes, and we have
established an Environmental Vision that challenges us to become carbon neutral by 2050 and to reduce CO2
emissions by 38% in 2025 and 46% in 2030 compared to fiscal 2013 levels.
To achieve carbon neutrality, we will promote energy conservation and consider renewable energy, alternative
materials (e.g., bio-coke), and CCUS (carbon capture, utilization and storage).
Environmental Vision 2030/2050 (Japan)
(Note 1) Scope 1: Considers planned implementation, including innovative technological
development and infrastructure improvements that are compatible with our facilities.
(Note 2) Scope 2: Considering the effect of the improvement of emission factors and the increase in the ratio
of nuclear power, renewable energy, etc. by electric power companies.
(Note 3) Although limited to domestic steel operations, steel operations account for approximately 98.7％ of
greenhouse gas emissions from our domestic facilities.
Materiality
The Group specifies policies and challenges for realizing the business growth toward Vision 2030 and foundations supporting their growth as 15 materiality items, organized into three categories: Business growth Vision 2030, Business growth Priority strategies, and Foundations for growth. By incorporating them 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
Medium-Term Sustainability Plan
Business growth Vision 2030
Promoting carbon neutrality initiatives
Further enhancing the environmental advantages of the electric furnace business
Contribution to the circular economy
Business growth Priority strategies
Further deepening and expanding partnerships and networks
Expanding, with structural steel at the core, the value chain, as well as entering new products, services, and businesses
Maintaining and enhancing quality standards for technologies, products, and services
Manufacturing that supports growth markets
Foundations for growth
Creating an environment where diverse professionals who drive new initiatives can thrive and find their work rewarding
Promoting digital transformation (DX)
Enhancing the management of waste, hazardous materials, and harmful substances
Ensuring safe working environments and promoting employee health management
Strengthening our Business Continuity Plan (BCP) for natural disasters
Respecting the human rights of everyone involved in our business
Strengthening compliance
Strengthening the risk management system and enhancing its effectiveness
Medium-Term Sustainability Plan
In the Medium-Term Sustainability Plan, we define the scope for each materiality in line with its significance
and positioning, taking into account the business environment and characteristics of each business.
KGIs, KPIs, and initiatives are set and managed for each business segment.
<Main Group Companies by Segment>
- Steel (Japan): Yamato Steel Co., Ltd.
- Steel (Thailand): Siam Yamato Steel Co., Ltd.
- Steel (Indonesia): PT Garuda Yamato Steel
- Trackwork materials: Yamato Trackwork System Co., Ltd.
- Other: Yamato Shoji Co., Ltd.
Promoting carbon neutrality initiatives
- Group-wide
Target state
The Group as a whole will have achieved carbon neutrality by 2050
Key Initiatives
- Decarbonizing energy and materials inputs
- Driving greater efficiency
- Improving the fuel efficiency of our fleet
- Reducing greenhouse gas (GHG) emissions
- Measuring greenhouse gas (GHG) emissions and developing reduction plans
Key KPI
| Scope | Target Timeline | KPI |
|---|---|---|
| Steel (Japan) | FY2026 | Establishing stable production and operations for the biocoke business and transitioning to optimal operations: Business launch |
| FY2030 | Introduction of oxygen-enrichment technology to existing reheating furnaces | |
| FY2028 | High-precision upgrades to rolling mills: Completion | |
| FY2030 | GHG emissions: 143,100 t-CO2 | |
| Trackwork materials | FY2026 |
<Introduction of energy-saving technologies> ・Upset forging equipment: Installation and upgrade completed ・Rail processing equipment: Installation and upgrade completed |
| FY2030 | GHG emissions: 1,045 t-CO2 | |
| Other | FY2030 | Replacement rate with environmentally friendly vehicles: 15％ |
| Steel (Thailand) | FY2030 | GHG emission intensity (Scope 1 and 2 total): 21% reduction (vs. FY2013) |
| Steel (Indonesia) | FY2030 |
・Quantifying Scope 3 emissions ・Improving data collection efficiency for Scope 1, 2, and 3 emissions and optimizing the calculation process |
| FY2028 | Upgrading rolling lines | |
| FY2026 | Installation of rooftop solar photovoltaics: 6.5-MW class |
Further enhancing the environmental advantages
of the electric furnace business
- Steel (Japan)
- Steel (Thailand)
- Steel (Indonesia)
- Trackwork materials
- Other
Target state
GHG emissions from our products will be reduced, enabling us to deliver higher value-added products and strengthening our brand recognition within the industry
Key Initiatives
- Enhancing promotion of environmentally friendly products
- Reducing greenhouse gas (GHG) emissions per product unit
- Strengthening market differentiation for electric furnace products
- Enhancing promotion of the environmental advantages of electric furnaces
Key KPI
| Scope | Target Timeline | KPI | |
|---|---|---|---|
| Steel (Japan) | Annually | Regular information-sharing meetings with existing customers: 5 per year | |
| Annually | Promotional activities for new customers with potential demand: 2 per year | ||
| Steel (Thailand) | FY2026 | <Obtaining green certifications for products in overseas markets>New Zealand: Obtain SSA certification | |
| Steel (Indonesia) | <Maintaining compliance with obtained certifications> | ||
| FY2027 | SIH (Green Industry Standard) certification: Maintain compliance | ||
| FY2026 | Green Label Indonesia: Maintain certification | ||
| <Reflecting EPD scope expansion and equipment upgrades in CFP> | |||
| FY2026 | Adding high-tensile steel to the scope of certification | ||
| FY2029 | Update the CFP to reflect energy-saving effects from rolling line upgrades | ||
Contribution to the circular economy
- Steel (Japan)
- Steel (Thailand)
- Steel (Indonesia)
- Trackwork materials
- Other
Target state
Recycled resources, including steel scrap that may be in short supply in the future, will be utilized steadily, and waste will continue to be used effectively as it is today
Key Initiatives
- Continuing effective use of industrial waste generated in our manufacturing processes
- Securing key raw materials of stable quality
- Utilizing new recyclable resources and securing their stable supply
- Converting waste into valuable resources
- Promoting the circular economy in the construction industry
Key KPI
| Scope | Target Timeline | KPI |
|---|---|---|
| Steel (Japan) | Annually | Maintaining the recycling rate for industrial waste generated in-house: 79.3％ |
| Annually | Number of product defects attributable to key raw materials: 0 cases per year | |
| FY2026 | Securing raw materials for the biocoke business: Completion | |
| Trackwork materials | Annually | Rate of converting turnings and waste chips into valuable resources: 100% |
| Steel (Thailand) | FY2030 | ・Collaborating with CECI (Circular Economy for Construction Industry) to promote circular
economy and green construction ・Establishing a circular economy project with CECI members |
| Steel (Indonesia) | FY2030 | Strengthening the procurement of iron scrap supply sources |
Further deepening and expanding
partnerships and networks
- Steel (Japan)
- Steel (Thailand)
- Steel (Indonesia)
- Trackwork materials
- Other
Target state
- We will become the global No1 in structural steel in terms of both volume and profitability
- New businesses building on structural steel will be launched
- We will explore new opportunities to diversify our business portfolio
Key Initiatives
- Expanding businesses based on existing and new partnerships
- Expanding our market reach into new areas
- Forward-looking joint development with customers
Key KPI
| Scope | Target Timeline | KPI |
|---|---|---|
| Group-wide※ | FY2030 | Structural steel production capacity (entire Group): 8 million tons |
| FY2030 | ROE (entire Group): 10% or more | |
| FY2030 | Production capacity in new areas (regions, countries): 2 million tons | |
| Trackwork materials | Annually | Number of development contract projects: 3 per year |
※The entire Yamato Kogyo group, including equity-method affiliates
Expanding, with structural steel at the core,
the value chain, as well as entering new products,
services, and businesses
- Steel (Japan)
- Steel (Thailand)
- Steel (Indonesia)
- Trackwork materials
- Other
Target state
- We will become the global No1 in structural steel in terms of both volume and profitability
- New businesses building on structural steel will be launched
- We will explore new opportunities to diversify our business portfolio
Key Initiatives
- Expanding our product and service offerings through technical collaboration and joint research
- Developing new businesses
Key KPI
| Scope | Target Timeline | KPI |
|---|---|---|
| Steel | Annually | Number of technology exchange or joint research activities: 2 per year |
| Group-wide※ | FY2030 | Number of new businesses launched: 3–5 |
| FY2030 | Investment and equity contributions in new businesses: JPY 50–100 billion |
※The entire Yamato Kogyo group, including equity-method affiliates
Maintaining and enhancing quality standards for technologies, products, and services
- Steel (Japan)
- Steel (Thailand)
- Steel (Indonesia)
- Trackwork materials
- Other
Target state
We will continue to deliver high-quality products and services through continuous improvement of our technologies and operations, maintaining high customer satisfaction
Key Initiatives
- Maintaining and improving a quality control system
- Reducing nonconforming products
- Maintaining and improving service quality
Key KPI
| Scope | Target Timeline | KPI |
|---|---|---|
| Steel (Japan) | FY2030 | Customer satisfaction (quality metrics) following rolling mill upgrades: +7% (vs. FY2021–FY2025 average) |
| Annually | <Quality improvement through expanded product lineup> Serious complaints related to this matter: 0 cases per year | |
| FY2026 | <Introduction of new inspection equipment and establishment of required inspection methods> Nitrogen gas analysis (JIS): Operations established | |
| FY2026 | Preventing nonconforming products and defect escape using an AI defect detection system: Start of operations | |
| Trackwork materials | Annually | Number of training sessions hosted by the Quality Assurance Department: 3 or more per year |
| Annually | Number of small-group training sessions (Manufacturing and Quality Assurance departments): 1 or more per month | |
| Annually | Number of detailed reviews of drawings, specifications, and inspection certificates for mass-production products: 20 or more per month | |
| Annually | The number of similar complaints: 0 cases per year | |
| Other | FY2026 | Customer satisfaction survey (questionnaire): Implementation completed |
Manufacturing that supports growth markets
- Steel (Japan)
- Steel (Thailand)
- Steel (Indonesia)
- Trackwork materials
- Other
Target state
- Industry recognition will increase in both existing and new growth markets, and both production and sales volumes will grow steadily
- By creating employment opportunities in the regions where we operate, we will be recognized as a company rooted in local communities
Key Initiatives
- Continuing and expanding business in growth markets
Key KPI
| Scope | Target Timeline | KPI |
|---|---|---|
| Group-wide※ | FY2030 | Continuous increase and expansion of production volume |
※The entire Yamato Kogyo group, including equity-method affiliates
Creating an environment where diverse professionals
who drive new initiatives can thrive and find their work rewarding
- Steel (Japan)
- Steel (Thailand)
- Steel (Indonesia)
- Trackwork materials
- Other
Target state
- We will have an environment in place where every employee can thrive and find their work rewarding (including organizational structures, training, systems, and culture)
- Diverse professionals who embody the Yamato SPIRIT※1 will thrive
Key Initiatives
- Creating an environment where diverse talent can thrive
- Implementing our recruitment strategy and filling staffing needs
- Promoting self-directed career development and talent development
- Embedding and putting into practice MVY (MISSION, VISION, Yamato SPIRIT) and the Yamato Way※2
KGI
- Employee engagement: A survey score of 3.5 or more every year
Key KPI
| Scope | Target Timeline | KPI |
|---|---|---|
| Group-wide (Japan) | Annually | Mid-career hire ratio: 50% or higher (of total hires) |
| FY2030 | The ratio of female managers: 10% or more | |
| FY2030 | Childcare leave take-up rate: 80% or higher for both men and women | |
| FY2030 | The average period of childcare leave taken by male employees: 1 month or more | |
| Annually | Hiring fulfillment rate: 100% (new graduate and mid-career hires) | |
| Annually | Alumni hire ratio: 5% or higher (of mid-career hires) | |
| Annually | Referral hire ratio: 15% or higher (of new graduate and mid-career hires) | |
| Annually | Skill development training participation rate: 60% or higher (eligible: General Employees) | |
| Annually | Number of annual applications for license/certification incentives: 50 or more | |
| Annually | Number of applications for internal postings, internal FA, and internal internships: 6 or more per year | |
| Annually | Utilization rate of the Yamato allowance※3: 90% or higher | |
| Annually | Average rating for “My Yamato SPIRIT”: B or higher | |
| Annually | Average rating for “Yamato Way implementation level”: B or higher |
※1 Yamato SPIRIT: Yamato Kogyo Group’s shared values and code of conduct
※2 Yamato Way: Yamato Kogyo Group’s ideal management and communication
※3 Yamato allowance: Peer bonus program
Promoting digital transformation (DX)
- Steel (Japan)
- Steel (Thailand)
- Steel (Indonesia)
- Trackwork materials
- Other
Target state
- Business processes will be optimized through operational reforms, and digitalization and AI adoption will advance in step with technological progress
- Competitive advantages will be enhanced through data-driven management
- By sharing and leveraging knowledge across the Group, we will strengthen our technical capabilities and productivity and support the Group’s sustainable growth
Key Initiatives
- Developing DX talent
- Improving operational efficiency by leveraging DX
Key KPI
| Scope | Target Timeline | KPI | |
|---|---|---|---|
| Group-wide (Japan) | FY2030 | Number of participants in the DX talent development program: Achievement of Levels 1-3 | |
| FY2030 | Number of employees holding IT and data analytics certifications: 50 | ||
| FY2030 | Number of employees using digital tools: 300 (cumulative) | ||
| FY2026 | Number of DX training events held: 5 per year | ||
| FY2030 | Cumulative reduced work hours (annualized) from the initiatives below: 25,000 hours | ||
| <Building a data analytics platform> | |||
| FY2026 | Implementation of data analytics tools: Completion | ||
| FY2030 | Active users: 200 | ||
| FY2030 | Analysis volume: 400 dashboards, 100,000 annual access | ||
| <Digitization of factories> | |||
| FY2030 | Number of operational improvement initiatives (system implementation and upgrades): 80 (cumulative) | ||
Enhancing the management of waste, hazardous materials, and harmful substances
- Group-wide
Target state
We will establish robust management systems to identify and manage waste, hazardous materials, and harmful substances, enabling safe and reliable operations
Key Initiatives
- Managing the generation of waste, hazardous materials, and harmful substances
- Managing waste, hazardous materials, and harmful substances
- Preventing leakage incidents during waste transportation
Key KPI
| Scope | Target Timeline | KPI |
|---|---|---|
| Steel (Japan) | Annually | Total waste generated per unit of crude steel production: Maintain current level |
| Annually | Monitoring of harmful substances | |
| Annually | Number of external leakage incidents involving waste: 0 per year | |
| Annually | Number of external leakage incidents involving hazardous materials and harmful substances: 0 per year | |
| Trackwork materials | Annually | Ensuring 100% compliant management and execution of industrial waste treatment (in accordance with applicable laws and regulations) |
| Other | Annually | Number of regular training sessions for drivers and workers: 2 per year |
| Steel (Thailand) | Annually | Zero waste-to-landfill |
| Steel (Indonesia) | FY2030 | Reducing slag loss by strengthening scrap quality control |
| FY2030 | Reducing scale loss through reheating furnace upgrades |
Ensuring safe working environments and promoting employee health management
- Group-wide
Target state
- We will comply with local laws and regulations, prevent workplace accidents, and maintain safe and comfortable working environments
- We will establish the foundations to support employees’ physical and mental well-being, including organizational frameworks, training, and systems
Key Initiatives
Health management
- Improving employees’ health and well-being
Occupational safety
- Developing safe working environments
- Fostering safety awareness
- Strengthening occupational health and safety
Key KPI
| Scope | Target Timeline | KPI |
|---|---|---|
| Group-wide (Japan) | Annually | Health guidance coverage rate: 70% or higher (including internally provided guidance) |
| Annually | Number of health-related training sessions conducted: 4 or more per year | |
| Steel (Japan) | FY2030 | Workplace accident frequency rate (including lost-time and non-lost-time incidents): Improve by 30% (vs. FY2021–FY2025 average) |
| FY2030 | <Safety-related DX initiatives> Safety door classification and maintenance framework / monitoring using cloud cameras and AI | |
| Annually | Participation rate in VR training and e-learning for safety awareness: +10% (vs. FY2025) | |
| Trackwork materials | Annually | VR training for safety awareness: Mandatory participation for all employees |
| Other | Annually | Completion rate for Logipoke (e-learning) for safety awareness: 80% or higher |
| Steel (Thailand) | FY2030 | SYS Contractor Safety Certification rate among on-site partner contractors: 100% |
| Steel (Indonesia) | Annually | Lost-time accident frequency rate: Improve year on year (vs. the previous fiscal year) |
Strengthening our Business Continuity Plan (BCP)
for natural disasters
- Steel (Japan)
- Steel (Thailand)
- Steel (Indonesia)
- Trackwork materials
- Other
Target state
We will establish and continuously improve a robust system to minimize risks in the event of natural disasters
Key Initiatives
- Preparing a BCP for natural disasters and establishing a PDCA management framework
Key KPI
| Scope | Target Timeline | KPI |
|---|---|---|
| Group-wide (Japan) | FY2027 | BCP for natural disasters: Development completed |
Respecting the human rights of everyone involved in our business
- Group-wide
Target state
We will establish systems to respect the human rights of all stakeholders, in line with local laws, regulations, and conditions in each country
Key Initiatives
- Developing and rolling out internal human rights policies and frameworks
- Establishing and operating a framework to respect human rights across the supply chain
- Strengthening human rights initiatives, including eliminating harassment across the supply chain
- Developing and rolling out internal human rights policies and frameworks
Key KPI
| Scope | Target Timeline | KPI |
|---|---|---|
| Group-wide (Japan) | Annually | Attendance rate for training on human rights: 100% |
| Annually | Response rate for due diligence (DD) questionnaires from major suppliers in Japan: 100% | |
| Steel (Thailand) | FY2030 | Forced Labor Risk Management with key partners: Conducted |
| Annually | Harassment cases: 0 cases per year | |
| Steel (Indonesia) | FY2026 | Formalizing and rolling out an anti-harassment policy |
| Annually | Facilitating employee networking events to foster an inclusive workplace culture and awareness: 1 or more per year |
Strengthening compliance
- Group-wide
Target state
- The Group will maintain zero serious compliance violations
- All Group employees will have a high level of compliance knowledge and strong ethical standards
- We will establish strong compliance frameworks and systems to ensure thorough compliance
Key Initiatives
- Strengthening compliance frameworks and governance
- Promoting initiatives to raise compliance awareness, such as employee training
- Strengthening compliance and ethical standards
Key KPI
| Scope | Target Timeline | KPI |
|---|---|---|
| Group-wide (Japan) | Annually | Credit check implementation rate for new business partners: 100% |
| FY2030 | Awareness of the whistleblowing system: 100% | |
| Annually | Determining whether an investigation is required for reported cases: Within 14 days | |
| Annually | Attendance rate for compliance training (laws and regulations, business ethics, etc.): 100% | |
| Steel (Thailand) | Annually | Number of violations of SHE-related laws, regulations, and rules: 0 per year (SHE: Safety, Health and Environment) |
| Annually | Pass rate for the annual E-Ethics test (all employees): 100% | |
| Steel (Indonesia) | FY2030 | Whistleblowing system (WBS) aligned with the ABC (Anti-Bribery and Corruption) Guidelines: Operate and maintain the system |
| Annually | Conducting internal ABC training: 1 or more per year |
Strengthening the risk management system and enhancing its effectiveness
- Group-wide
Target state
- We will be prepared to minimize business impacts and prevent disruptions when threats arise
- We will select key risks for the Group, set measures and review and improve them periodically
- We will establish a robust framework for reporting and sharing risk information between Group companies and Yamato Kogyo, and leverage that information to implement preventive and recurrence-prevention measures
Key Initiatives
- Enhancing the Group’s risk management framework
- Advancing PDCA-based risk management processes across Group companies
- Strengthening risk management
- Operating and maintaining the risk management framework
Key KPI
| Scope | Target Timeline | KPI |
|---|---|---|
| Group-wide (Japan) | FY2030 | Establishing the Yamato Kogyo Group’s risk management framework |
| Annually | Number of monitoring activities for Group companies: 2 per year | |
| Annually | Participation rate in risk management training: 90% or higher (target: Group companies in Japan; e.g., by employee level) |