Response to Climate Change

• Climate Change Response Measures
• Greenhouse Gas Emission Reduction Initiatives
• Endorsement of the TCFD and TNFD Recommendations
• External Recognition

• 1 Scope 1 emissions are direct greenhouse gas emissions from a business operator through sources such as fuel use on company premises.
• 2 Scope 2 emissions are indirect greenhouse gas emissions from use of electricity, heat, and steam supplied by third parties.
• 3 Scope 3 emissions are indirect greenhouse gas emissions from areas of the supply chain not accounted for under Scope 1 and Scope 2.
• 4 The Science Based Targets initiative is an international organization that encourages companies to formulate greenhouse gas emission reduction targets based on scientific evidence and that accesses and certifies such targets to contribute to the accomplishment of the goals of the Paris Agreement.
• 5 The TCFD is a task force created by the Financial Stability Board that has released recommendations aimed at facilitating appropriate investment decisions through disclosure of the potential financial impacts of climate change.

Participation in Organizations Responding to Climate Change

The Yamaha Group has joined the Japan Climate Initiative and declared its participation in the GX League. Moreover, we conform our decarbonization initiatives to the Keidanren Carbon Neutrality Action Plan, which was released by Keidanren (Japan Business Federation), an organization to which Yamaha is a member. As a Japan Climate Initiative member, the Yamaha Group endorsed the request sent to the Japanese government in 2024 asking it to set ambitious targets for 2035 that are congruent with the aim of limiting global warming to 1.5℃ above preindustrial levels. This request also promoted efforts to accelerate energy efficiency improvement and renewable energy adoption efforts.

Greenhouse Gas Emission Reduction Initiatives

Yamaha Corporation and domestic production sites are advancing energy conservation and other initiatives in manufacturing processes and at offices to achieve the long-pursued target of reducing CO₂ emissions per unit of production by 1% or more each year. For example, we have been introducing renewable energy at our business sites, and were thereby able to transition to renewable energy for 100% of the power used at the Company headquarters in April 2021. Furthermore, an internal carbon pricing system was implemented in 2022. At overseas production sites, quantitative reduction targets are set on an individual-site basis, and proactive initiatives are being implemented toward the accomplishment of these targets.

In advancing emission reduction initiatives, we manage greenhouse gas emission volumes in accordance with the Greenhouse Gas Protocol.^*6 In addition, third-party verification has been received for Scope 1 and Scope 2 emissions and certain Scope 3 emissions since fiscal 2017.

• 6 The Greenhouse Gas Protocol is a set of standards for calculating and reporting greenhouse gas emission volumes.

Greenhouse Gas Emission Reduction Targets, Measures, and Results

Reduction Targets (Certified as Science-Based Targets)

• Reduce total Scope 1 and Scope 2 greenhouse gas emissions by 55% from fiscal 2018 levels by fiscal 2031 (achieve effective carbon neutrality by fiscal 2051)
• Reduce total Scope 3 greenhouse gas emissions by 30% from fiscal 2018 levels by fiscal 2031

Major Reduction Initiatives

• Introduction and utilization of electricity monitoring systems to conserve energy
• Energy-saving initiatives including optimization of production methods and equipment placement, installation of highly energy-efficient equipment and LED lighting, and exhaustive management of facility operation times, air-conditioning temperatures, and other energy consumption factors
• Introduction of cogeneration systems and solar power generation systems
• Transition to fuel sources with low greenhouse gas emissions
• Switch to purchasing renewable energy
• Utilize internal carbon pricing system
• Improvement of transportation efficiency and shift to low-carbon transportation methods (ships and trains) in distribution
• Development of energy-efficient products (reduction of emissions from large-volume Scope 3 emissions category (product use))

Internal Carbon Pricing

The Yamaha Group introduced an internal carbon pricing system in April 2022 based on the belief that investing in renewable energy and selecting more energy-efficient equipment will be important to mitigating climate change risks. This system entails converting CO₂ emission volumes into monetary amounts based on virtual prices and using these amounts when making investment decisions. This approach motivates the Company to invest in facilities with higher levels of energy efficiency and is expected to drive investment in solar power and other renewable energy generation equipment. For the foreseeable future, the Group will use an internal carbon price of ¥14,000 per every ton of CO₂.

Results

Scope 1 and Scope 2 Emissions (Yamaha Corporation and all production sites)^{*7 *8 *9}

• 7 The scope of data collection is comprised of Yamaha Corporation headquarters and major production sites and resort facilities worldwide (estimated to account for more than 95% of all Yamaha Group sites).
• 8 Figures differ from those previously released as figures were recalculated to further subdivide regional and power company coefficients by base and by fiscal year.
• 9 Figures use the combined value of indirect emissions through purchased electricity and steam, direct emissions of CO₂ through in-house power generation and heat usage, and greenhouse gas emissions from manufacturing processes.

Scope 3 Emissions (Fiscal 2025)

Factory Initiatives

• Introduction and utilization of electricity monitoring systems to track electricity use and conserve energy
• Use of inverters and appropriate pressure for compressors, partitioning of work booths, introduction of power usage monitors, and conservation of space by consolidating equipment inside factories and rationalizing equipment layouts
• Improvement of air-conditioning efficiency by spraying water on and applying thermal-barrier coating to factory roof
• Removal of unnecessary lighting, optimal positioning of lighting, reduction of amount of time lighting is used, and replacement of fluorescent lighting with LED lighting
• Utilization of cogeneration systems to cut CO₂ emissions
• Appropriate operation management of dust collectors

Initiatives at Resort Facilities

• Electricity conservation through installation of LED lighting and motion sensors in restrooms
• Reduction of CO₂ emissions by switching from gasoline golf carts to electric carts
• Conservation of electricity through adjustment of turf surface aeration fans and facility air-conditioning
• Reduction in boiler fuel consumption (heavy oil) and operation time through replacement of all large-scale, air-conditioning systems that use hot water for heating with energy-efficient air-cooling systems
• Introduction of electric vehicle charging stations that use renewable energy

Initiatives at Offices

• Reduction of amount of lighting, introduction of LED lighting, deactivation of lit advertisements, halting of elevator operation, and notification of employees of electricity consumption amounts to raise awareness in pursuit of electricity savings
• Appropriate air-conditioning management and promotion of “Cool Biz” and “Warm Biz” initiatives advocated by the Ministry of the Environment in Japan

Initiatives in Logistics

• Improvement of transportation efficiency and shortening of transportation lead times
• Heightening of truck and container loading ratios, reviewing of warehouse locations and transport routes to shorten transportation distances, and examination of the possibility of incorporating low-carbon transportation methods (ships and trains)
• Revision of transportation packing specifications, joint transportation with other companies, and disposal of waste products at the relevant base

Resource Conservation and CO₂ Emission Reduction in Piano Frame Transportation

Previously, the Yamaha Group has used disposable iron packing racks when transporting piano frames from Japan to overseas factories. However, we are gradually introducing returnable packing racks for piano frames that can be used multiple times in order to conserve resources. In addition, by shortening transportation routes and improving load efficiency, the Company has achieved a 100-ton reduction in CO₂ emissions associated with the disposal of iron packing and a 1,600-ton reduction in iron resource consumption.

Standardization of Packaging for Shipping to Conserve Resources and Reduce CO₂ Emissions

The Yamaha Group is pursuing enhanced efficiency in transportation by increasing the number of products shipped per container through the use of more compact packaging that better matches the sizes of the containers used during shipping. For example, a 17% reduction in the size of the packaging used for Yamaha P series digital pianos resulted in a 12.5% increase in container packing rates. This change led to an annual reduction of 269 in the number of 40-foot high-cube containers used together with a decrease of 26 t-CO₂ in annual CO₂ emission volumes.

CO₂ Absorption Through Tree Planting Activities in Indonesia

After conducting Yamaha Forest tree planting activities in Indonesia over the period from 2005 to 2016, the Company confirmed the growth status of the forest via satellite imagery and estimated the volume of CO₂ absorbed by the trees in 2017. The Company estimates that approximately 42,000 t-CO₂ had been absorbed leading up to 2017, and that more than 6,000 t-CO₂ have been absorbed on a consistent basis each year thereafter.

Endorsement of the TCFD and TNFD Recommendations

In June 2019, the Yamaha Group declared its endorsement of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and commenced initiatives for analyzing the impact of climate change on its finances and disclosing related information. In addition, we registered as a TNFD Early Adopter in January 2024 to demonstrate our intent to quickly begin disclosure based on the framework provided by the Taskforce on Nature-related Financial Disclosures (TNFD). Based on this framework, we performed an assessment of Yamaha’s nature-related dependencies and impacts. Furthermore, we began issuing documents disclosing information in a manner that reflects the recommendations of both the TCFD and the TNFD in June 2024 to analyze and report on the risks and opportunities faced by the Yamaha Group in terms of both climate change and biodiversity.

Going forward, the Yamaha Group will continue to reflect climate change and biodiversity risks and opportunities, based on the TCFD and TNFD recommendations, into its management strategies while disclosing information on how these risks and opportunities could affect the Group financially.

External Recognition

Inclusion on CDP Climate Change A List, the Highest Honor for Climate Change

Yamaha Corporation has been included in the 2024 CDP Climate Change A List, compiled by international NPO CDP, as a reflection of its proactive climate change initiatives and the transparency thereof. The Company has been included on this list three times and for two consecutive years. Yamaha also received high ranks of A- in the categories of water security and forests, meaning that the Company is at leadership levels with regard to climate change, water security, and forests.

Receipt of Award of Excellence in Shizuoka’s Eco-Friendly Building Awards by New Headquarters Office Building

Yamaha’s new headquarters office building, which began use in July 2024, received an award of excellence in the eco-friendly building awards program operated by Shizuoka Prefecture. This honor was a reflection of the superior environmental measures in place at the building for conserving energy and improving the internal environment. The program itself is meant to promote the development of eco-friendly buildings with high environmental efficiency that contribute to reductions in greenhouse gas emissions through energy conservation.

The headquarters office building is equipped with solar panels on its roof for supplying power within the building. Moreover, the building employs a double-skin system that promises high energy conservation benefits through ventilation circulating air within the outer glass layer and the outside air as well as automated sunlight-chasing blinds that help control the level of brightness within the building. These and other innovations are contributing to a 50% reduction in energy consumption at the building, making it ZEB Ready^*10 and earning it the highest rank of S under the Comprehensive Assessment System for Built Environment Efficiency (CASBEE) green building certification program.^*11

• 10 ZEB Ready is a certification for buildings that reduce standard primary energy consumption by more than 50% (when excluding renewable energy use).
• 11 CASBEE is a system for rating building environmental efficiency using five ranks, with S being the highest rank.