Domestic 2030・2050 Environmental Vision / Medium-term Sustainability Plan

Domestic 2030・2050 Environmental Vision

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).

Domestic 2030・2050 Environmental Vision

(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 power coefficients 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 98.6% of energy consumption at domestic facilities.

Medium-term Sustainability Plan

About the identified materiality, we have set medium-term goals targeting FYE March 2026, as well as short-term annual targets to achieve these goals. Based on this plan, we will implement the PDCA cycle and promote the plan, as well as deepen the plan through deliberations by the Sustainability Committee.

Classification Materiality Item Corresponding SDGs Risks/opportunities for our Group Vision FYE March 2026 FYE March 2026
Medium-term targets*1 Annual targets*1
E
Environment		 Climate change Response to climate change risks <Opportunities>
  • If CO2 emissions are reflected in taxes, prices, etc., electric furnace products, which emit less CO2 at the manufacturing stage than blast furnace products, could become more competitive than blast furnace products.
<Risks>
  • The cost of raw materials, energy (such as electricity), water, etc., could rise or supplies could become unreliable.
  • Fuel prices could soar due to carbon pricing, etc., resulting in higher costs.
 We will take measures towards a carbon-neutral society in 2050 by introducing innovative decarbonization technologies, promoting energy conservation and using renewable energy in sectors where this is feasible.
  • We will disclose to the market the potential financial impact of transitional and physical risks relating to climate change in the period to FYE March 2026.
  • Continue to calculate the potential impact and disclose risk response costs if carbon pricing isintroduced according to TCFD recommendations.
Reduction of greenhouse gas ("GHG") emissions
  • We will reduce CO2 emissions by 38% from the FYE March 2014 level.*2, *3
  • Continue to strengthen collaboration with university research institutes and domestic and overseas vendorsto capture the status of next-generation industrial furnace development using CO2-free fuels (hydrogen, ammonia, etc.) and the status of CO2-free fuel supply chain expansion.
  • All domestic and overseas consolidated subsidiaries will calculate Scope 1 and Scope 2 GHG emissions.
  • Yamato Steel, on a non-consolidated basis, will calculate all Scope 1 to 3 emissions and obtain third-party verification.
  • Reduce CO2 emissions by 38% from the FYE March 2014 level.
Efficient energy use
  • We will reduce CO2 emission intensity by 20% from the FYE March 2014 level.*2
  • Reduce CO2 emission intensity by 20% from the FYE March 2014 level.
Use of renewable energy
  • We will introduce renewable energy in specified business areas by FYE March 2026.
  • Continue stable operation of 3MW-scale solar power generation facilities and systems.
Resource recycling Cyclic use of resources <Opportunities>
  • Because electric furnaces produce iron using scrap iron as a raw material, we can improve our competitiveness by emphasizing, to the public, our recycling activities and cyclic use of resources.
  • By increasing the waste to reuse ratio, we can achieve a higher level of resource recycling.
<Risks>
  • If there are fewer buyers for waste products, it will become impossible to reuse waste, resulting in a lower recycling ratio.
 By enhancing and expanding systems that facilitate efficient recycling of scrap iron, we will contribute to the creation of a circular economy and realization of a sustainable society.
  • We will take up the challenge of reducing general waste emissions to zero.
  • We will improve our industrial waste recycling ratio by 5%.
  • Continue to provide environmental education on waste and recycling, and expand the use of plastics and other recycled fuels to reduce general waste.
  • Continue exploring new customers for the sale of valuable resources and consider processing methodstailored to their needs, further contributing to waste reduction.
  • Maintain the recycling rate of industrial waste.
Eco-friendly products Development of eco-friendly products and services ＜Opportunities＞
  • If CO2 emissions are reflected in taxes, prices, etc, we will gain a competitive advantage. (Clients would be more likely to choose electric furnace products, which have lower CO2 emissions and lower prices.)
 We will develop products and technologies that help to reduce CO2 emissions and the environmental burden facing society as a whole.
  • We will contribute to the reduction of CO2 emissions by society as a whole by promoting the use of environmentally certified products and supplying products with low CO2 emissions.
  • Continue to explore the possibility of utilizing waste as a valuable resource with other industries.
  • Continue PR activities to raise awareness of product environmental information verified by a third party.*4
  • Develop methods for maintaining and managing facility capacity, including maintenance, for the commercialization of bio-coke production.
  • Further expand sales of environmentally friendly products under the "+Green" brand.
S
Social		 Product liabilities Ensuring product quality <Risks>
  • Issues with product quality could have a major negative impact.
  • We could be exposed to reputational risk due to late deliveries by outsourcees or quality problems.
 We will remain aware of our responsibility to support social infrastructure through our iron and steel products, heavy engineering, and rail products' business. We will prioritize the provision of safe, dependable, high-quality, high-added-value products and services.
  • We will reduce the number of complaints by 25% from the FYE 2021 level.
  • As a company that plays an important role in rail and sea transportation, we will maintain the most thorough quality control and continue efforts to reduce serious accidents for which we are liable to zero.
  • Continuously focus on improving the quality of large-scale products and maintain strict quality management standards.
  • Continue achieving zero majorresponsible accidents in rail and sea transportation.
Strengthening of disclosure to and communication with customers <Opportunities>
  • By improving customer satisfaction, we can increase the likelihood that customers will choose our products.
<Risks>
  • By disclosing product information only to the customers (as/when we are required to), the market may view this as selective disclosure and it may cause us loss of opportunities and reputational riks.
 We will heed the voices of our customers and the public, offer added value, and work toward continual improvement.
  • We will clarify the needs and expectations of interested parties and work to improve customer satisfaction.
  • To maintain the quality of large-scale products, stricter quality assurance measures are implemented, along with enhanced on-site guidance and employee training.
  • Enhance communication with customers and work to improve customer satisfaction through integrated production and sales initiatives.
Human resource development Human resource development <Opportunities>
  • By recruiting human resources with a diverse range of skillsets, we will be able to create high-added-value products and services.
<Risks>
  • Business expansion could lead to labor shortages without commensurate recruitment.
  • Competition to recruit talented people is escalating.
 We will enhance the loyalty of our employees by focusing on sustainability. We will evolve as a company capable of success in a global arena by rotating our workforce to achieve diverse skills and advanced technological skills and flexible planning capabilities needed to realize our corporate philosophy (MISSION, VISION, Yamato Spirit) throughout our entire group.
  • We will facilitate the training of our global talent through open communication and regular training updates within the group, and by carrying out job transfers between group companies as well as developing various career paths across groups.
  • We will globally roll out our steel-making technology through the introduction of the latest facilities and operational experience, thereby raising technological capabilities and driving DX across the entire group.
    ＜Enhancing the work environment＞
  • Smoothly transition to and operate the new HR system and various policies.
  • Implement specific measures related to human capital management.
    • ＜Improvement of organizational capabilities＞
  • Continue cross-group job rotation programs.
  • Further enhance and strengthen new graduate and mid-career recruitment.
  • Continue overseas business trip training programs in collaboration with overseas joint ventures.
    • ＜DX Promotion＞
  • Establish a system for DX promotion through group-wide cooperation.
G
Governance		 Corporate management base Governance <Opportunities>
  • By continually improving corporate governance, we can create a flexible and resilient management structure.
  • The dissemination of our corporate philosophy (MISSION, VISION, Yamato Spirit) fosters awareness of governance and leads to improved engagement and performance.
<Risks>
  • We could lose the trust of the public and our business partners in the event of a lack of governance awareness and compliance violations.
 We aim to maintain our position as a company trusted by the general public, strengthen our corporate governance, and become a sustainable company capable of responding with resilience to climate change and other major environmental threats.
  • We will continually implement corporate governance reforms.
  • We will disseminate our corporate philosophy across the entire group.
  • We will build a sustainability management structure for the entire group.
  • Examine and implement specific initiatives to further enhance the effectiveness of the Board of Directors, addressing the issues identified through the Board effectiveness evaluation survey.
  • Plan and execute concrete measures to further improve employee engagement, and develop new initiatives based on the results of the all-employee survey.
  • Continue reporting and discussions at management meetings on feedback from investors and market participants received during IR meetings, and the resulting measures implemented in response.
  • Promote the establishment and expansion of the PDCA cycle for risk management activities tailored to the circumstances of domestic and international group companies, while enhancing external disclosures.
Compliance <Risks>
  • As our business expands globally, our approach to regulatory compliance and response to ethical issues will determine whether we are likely to experience suspensions of operations or serious impairment to the reputation of our brand.
  • Compliance violations or lack of appropriate compliance awareness could damage our reputation with the market and our business partners.
  • There will be no serious regulatory breaches.
  • Focus on the following themes to enhance group-wide compliance.

    •    - Human rights initiatives (formulation and announcement of Human Rights Policy, employee awareness and education, and the establishment of a PDCA cycle including human rights due diligence).

       - Anti-bribery and anti-corruption (formulation of guidelines and employee awareness and education).

       - Strategic use of intellectual property.
  • *1 Unless otherwise stated, descriptions under these items target iron and steel products business that would have the greatest impact on Yamato Kogyo Group.
  • *2 To conform with the Japanese government’s reduction targets, we use FYE March 2014 as the base year.
  • *3 Scope 1 and 2 total. Because the electric furnace business is characterized by heavy use of electric power, it would be significantly impacted by any change in the generation mix of electric power companies.
  • *4 SuMPO EPD and Climate Declaration

Yamato Kogyo Group Medium-term Sustainability Plan（PDF:265KB）

Medium-term Sustainability Plan Initiatives and Achievements in FYE March 2025（PDF:243KB）

Sustainability TOP

Environment
Governance