Response to Climate Change

Rapid climate change poses a major threat to humanity and to all life-forms on earth. We recognize that helping combat this threat and contributing to the decarbonization of society are corporate responsibilities and important management issues.

Under the guidance of the Working Group for Climate Change, a working group chaired by an operating officer positioned under the Sustainability Committee, which is chaired by the president, the Yamaha Group is working to contribute to the global movement to reduce CO₂ emissions. At the same time, we are preparing for the potential impact of climate change by identifying risks, formulating mitigation measures, and incorporating these into business strategies. Endorsing the goals of Science Based Targets (SBT),^*1 the Group received certification from this initiative for its medium- to long-term reduction targets in June 2019. Later, in September 2021, the Company received certification for a new greenhouse gas emission target of achieving a reduction of 55% in Scope 1^*2 and Scope 2^*3 emissions from fiscal 2018 to be achieved by fiscal 2031, substantially higher than the prior target of a 32% reduction. The certification indicates that this new more ambitious target is viable for limiting global warming to 1.5ºC above pre-industrial levels. The move was taken in response to the carbon neutrality trends of the international community. Furthermore, the Group declared its endorsement of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)^*4 in June 2019 and commenced initiatives for analyzing the impact of climate change on its finances and disclosing related information.

Going forward, the Yamaha Group will continue to seek to achieve net zero emissions in its operations and across its value chains. At the same time, we will strive to create products, services, and business models that help mitigate climate change and promote the decarbonization of society through energy-efficient products and other means.

Moreover, we will conform our initiatives to the Keidanren Carbon Neutrality Action Plan, which was released by Keidanren, an organization to which Yamaha is a member. The Company has also joined the Japan Climate Initiative and declared its participation in the GX League.

Yamaha Fine Technologies Co., Ltd., is engaged in the development, manufacture, and sale of leakage detection systems for the lithium-ion batteries used in hybrid electric vehicles, plug-in hybrid vehicles, and battery electric vehicles. These systems are imperative to the safe electrification of vehicles.

• *1 SBT is an international initiative that encourages companies to formulate greenhouse gas emission reduction targets in accordance with scenarios based on scientific evidence to contribute to the accomplishment of the goals of the Paris Agreement.
• *2 Scope 1 emissions are direct greenhouse gas emissions from a business operator through sources such as fuel use on company premises.
• *3 Scope 2 emissions are indirect greenhouse gas emissions from use of electricity, heat, and steam supplied by third parties.
• *4 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.

• Yamaha Eco-Products Program

• 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^*6 greenhouse gas emissions by 30% from fiscal 2018 levels by fiscal 2031

• *6 Scope 3 emissions are indirect greenhouse gas emissions from areas of the supply chain not accounted for under Scope 1 and Scope 2.

• 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
• Facilitate investment in high-efficiency and renewable energy equipment through 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))

• Use of 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 applying thermal-barrier coating to factory roof

• Removal of unnecessary lighting, replacement of fluorescent lighting with LED lighting, replacement of prior compressors with inverter compressors, upgrading of distribution transformers and air-conditioning equipment, and improvement of air-conditioning control
• Improvement of efficiency during low-load periods by integrating compressor control, investigation and repair of air leaks, and reduction of air pressure
• Reduction of CO₂ emissions by 583 t-CO₂ and electricity usage by 1,034 MWh on an aggregate basis over nine-year period (fiscal 2015-2023)
• Utilization of cogeneration systems to cut CO₂ emissions by 2,900 t-CO₂ a year (equivalent to 420 kL of crude oil a year)

• Efficient management of air-conditioning and sprinkling of water on factory roof to cut peak power consumption during the summer
• Introduction of summer-time system in which work start time is moved two hours ahead to 6:00 a.m. for certain automobile interior parts painting processes that require high levels of air-conditioning (effectively shifting peak power consumption point from 2:00 p.m. to 11:00 a.m. and realizing reduction in peak power consumption of approx. 310 kW in hotter part of the afternoon as well as lowering power consumption by 200,000 kWh during three-month period from July to September)
• Improvement of labor efficiency to shorten facility operating hours, review of workplace layouts to reduce air-conditioning requirements, and revision of how steam is used during winter

• Appropriate operation management of dust collectors
• Shortening of water supply operation times, strategic positioning of lighting, and reduction of lighting usage times
• Installation of automatic control system for dust collectors and digital electricity meters in switchboards to enhance management of electricity consumption and reduce losses from idle power consumption by machinery at night
• Sequential shift from fluorescent lighting to LED lighting

• Annual electricity savings of 77 MWh through installation of LED lighting and motion sensors in restrooms
• Annual reductions in CO₂ emissions of more than eight tons achieved by switching from gasoline golf carts to electric carts (fiscal 2014)
• Annual electricity savings of 25 MWh through "green fan" initiatives (greens maintenance) and adjustment of facility air-conditioning (fiscal 2019-2020)
• Approx. 30% reduction in boiler fuel consumption (heavy oil) and one-hour reduction in boiler operation time through replacement of all large-scale, air-conditioning systems that use hot water for heating with energy-efficient air-cooling systems
• Upgrades to high-efficiency boilers
• Introduction of high-efficiency air-conditioning systems and electric vehicle charging stations that use renewable energy

Yamaha Corporation is advancing systematic electricity conservation measures at offices.

Reduction of amount of lighting (after verifying lighting levels), introduction of LED lighting, deactivation of lit advertisements, halting of elevator operation, and notification of employees of electricity consumption amounts to raise awareness

• Annual electricity savings of 118 MWh at Yamaha Corporation headquarters by replacing approx. 2,500 lights with LED lighting over 10-year period (fiscal 2014-2023)
• Annual electricity savings of 130 MWh at Toyooka Factory by replacing approx. 6,300 lights with LED lighting over seven-year period (fiscal 2017-2023)
• Annual electricity savings of 228 MWh at Kakegawa Factory by replacing approx. 2,500 lights with LED lighting over nine-year period (fiscal 2015-2023)

Encouragement of cooler attire, such as not wearing a necktie, during summer (May to October) and setting of air-conditioning temperature to over 28°C

Request that employees wear warmer clothes during winter (November to March) so as not to rely too heavily on heating and setting of heater temperature to under 20°C

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. Going forward, we will examine the possibility of shortening transport distances and reducing disposable packing material use, including for parts aside from piano frames.

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 17.0% 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 26-ton decrease in annual CO₂ emission volumes.

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 6,000 t-CO₂ have been absorbed on a consistent basis each year thereafter.

• Protection of Biodiversity
• ESG Data

Rapid climate change poses a major threat to humanity and to all life-forms on earth.
We recognize that helping combat this threat and contributing to the decarbonization of society are corporate responsibilities and important management issues.

In fiscal 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 risks and opportunities for its business created by climate change. This information is reflected in management strategies, and information on the financial impacts of these risks and opportunities is disclosed.

Scenario analyses have been performed to confirm the potential impacts of climate change on the Yamaha Group. A number of scenarios were used including those projecting global warming of between 1.5°C and 2°C above pre-industrial levels, which involve significant transition risks, and scenarios assuming global warming of 4°C above pre-industrial levels, which forecast substantial physical risks, as well as various other scenarios.^*1 Applied to all businesses, these assessments were used to identify short-term, medium-term, and long-term risks and opportunities.^*2 Given the potentially large impact on business activities, strategies, and financial performance from climate change, the related risks and opportunities are regularly reviewed, and strategies are revised as necessary (see table below).

Reductions to CO₂ emissions are managed in a comprehensive manner encompassing the entire Yamaha Group and its supply chains. By pursuing steady reductions in greenhouse gas emissions (Scope 1, Scope 2, and Scope 3), Yamaha seeks to combat rapid climate change, which is a threat to human society as well as to all living organisms on the planet, and to contribute to the realization of a decarbonized society.