Climate Change Mitigation and Adaptation

Rapid climate change poses a major threat to humanity and to all life-forms on earth. We recognize that helping combat this threat and contribute to the decarbonization of society are corporate responsibilities and important management issues.
Under its global environmental preservation activity system overseen by the managing executive officer responsible for the environment, 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 an international initiative encouraging companies to formulate greenhouse gas (GHG) emissions reduction targets in accordance with scenarios based on scientific evidence, the Yamaha Group received certification from this initiative for its medium- to long-term reduction targets in June 2019. Also at this time, the Group declared its endorsement of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)*2 and commenced initiatives for analyzing the impact of climate change on its finances and disclosing related information.
Going forward, the Group will continue to pursue reductions in GHG emissions and work to address the impact of climate change. At the same time, we will seek 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.

  • *1 SBT is an international initiative that encourages companies to formulate GHG emissions reduction targets in accordance with scenarios based on scientific evidence to contribute to the accomplishment of the goals of the Paris Agreement.
  • *2 TCFD is a taskforce 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.

Greenhouse Gas Emissions Reduction Targets (SBT-Certified)

  • Reduce total Scope 1*3 and Scope 2*4 GHG emissions by 32% from fiscal 2018 levels by fiscal 2031
  • Reduce total Scope 3*5 GHG emissions by 30% from fiscal 2018 levels by fiscal 2031
  • *3 Scope 1 emissions are direct GHG emissions from a business operator through sources such as fuel use on company premises.
  • *4 Scope 2 emissions are indirect GHG emissions from use of electricity, heat, and steam supplied by third parties.
  • *5 Scope 3 emissions are indirect GHG emissions from areas of the supply chain not accounted for under Scope 1 and Scope 2.

Major Greenhouse Gas Emissions Reduction Initiatives

  • Energy-saving initiatives including optimization of production methods and equipment placement, installation of high-energy-efficiency 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 GHG emissions
  • Switch to purchasing renewable energy
  • Improvement of transportation efficiency and shift to low-carbon transportation methods (ships, trains) in distribution
  • Development of energy-efficient products (reduction of emissions from large-volume Scope 3 emissions category (product use))

Initiatives and Achievements to Date

Yamaha Corporation and domestic product 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. In fiscal 2020, after the establishment of SBT-certified targets, we began introducing renewable energy on a full-fledged scale and thereby shifted to renewable energy for one-third of the power purchased at the Company headquarters. 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 emissions reduction initiatives, we manage GHG emissions 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 GHG emission volumes.

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

[ graph ] Scope 1, 2 Achievement (Yamaha Corporation and all production sites)
  • *7 The scope of data collection is comprised of the Yamaha Group headquarters and major factories and resort facilities around the world (estimated to account for over 90% of all Yamaha Group sites*8).
  • *8 Two new production sites (Yamaha Music India Pvt. Ltd. and PT. Yamaha Musical Products Asia) are not included among Yamaha Group business sites at this point in time.
  • *9 In December 2020, based on the results of third-party evaluation, we revised the Scope 1 value for fiscal 2020 from 2.2 to 2.3.

Scope 3 Emissions (Fiscal 2020)

[ graph ] Scope 3

CO2 Absorption through Tree Planting Activities in Indonesia

After conducting “Yamaha Forest” tree planting activities in Indonesia over the period from fiscal 2006 to fiscal 2017, the Company confirmed the growth status of the forest via satellite imagery and estimated the volume of CO2 absorbed by the trees in fiscal 2018. The Company estimates that approximately 42,000 tons of CO2 have been absorbed to date.

Manufacturing Process Initiatives

Energy Conservation Activities at String and Percussion Instrument Factory

Yamaha Music Manufacturing Japan Corporation, which manufactures string and percussion instruments, has established the Energy-saving Promotion Committee and has been engaged in initiatives to reduce CO2 emissions. Measures taken have included ensuring the appropriate pressure for compressors, partitioning work booths, introducing power usage monitors, and installing door and window screens for ventilation in offices. This company is also implementing measures to improve energy efficiency and to save space by consolidating equipment inside factories and rationalizing equipment layouts. In fiscal 2016, this company applied a thermal-barrier coating to the roof of the factory, improving air-conditioning efficiency as a result. The company will continue to conserve energy through the appropriate management of air conditioning and the integration of processes.

Energy Conservation Measures at Piano Factory

Yamaha Music Manufacturing Japan Corporation is conducting a range of ongoing efforts to conserve energy. Specific activities include removing unnecessary lighting, changing from rapid-type fluorescent lighting to Hf-type lighting, replacing prior compressors with inverter compressors, upgrading distribution transformers and air-conditioning equipment, and improving air-conditioning control. Through these activities, this company has succeeded in reducing CO2 emissions by approximately 270 t-CO2 and cutting electricity usage by approximately 570 MWh on an aggregate basis over the six-year period from fiscal 2015 to fiscal 2020.

[ photo ] Cogeneration system at Kakegawa Factory
Cogeneration system at Kakegawa Factory

Reduction of Peak Power Consumption at Factory

At Yamaha Fine Technologies Co., Ltd., steps are taken to cut peak power consumption during the summer by efficiently managing air conditioning and sprinkling water on the factory roof. In addition, a summer time system was introduced in fiscal 2015. Over the three-month period from July to September, the 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. Through these measures, the peak power consumption point was shifted from 2:00 p.m. to 11:00 a.m. As a result, peak power consumption was reduced by approximately 310 kW in the hotter part of the afternoon, and power consumption was lowered by 200,000 kWh during the three-month period from July to September. Moreover, this company is making efforts to conserve electricity, such as improving labor efficiency by shortening facility operating hours, reviewing workplace layouts to reduce air-conditioning requirements, and revising how steam is used during the winter.

Energy Conservation Activities at a Factory in China

Hangzhou Yamaha Musical Instruments Co., Ltd., has introduced various energy conservation activities that include making technological improvements and enhancing management of daily work activities to curb the increase in energy consumption stemming from rising production levels. Recognizing these energy conservation activities and other environmental initiatives, Hangzhou City officials presented this company with a Cleaner Production Certification in accordance with China’s Cleaner Production Promotion Law at the end of 2011. Since then, this company has continued to implement the following measures to reduce energy usage.

  • 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 of electric light to LED lighting
[ photo ] Bulletin board providing notice of energy conservation and other environmental activities
Bulletin board providing notice of energy conservation and other environmental activities
[ photo ] Environmental education for employees
Environmental education for employees

Environmental Initiatives at Resort Facilities

Yamaha Resort Inc. is implementing the following CO2 emissions reduction initiatives at the resort facilities it operates.

Reduction of CO2 Emissions and Fuel Consumption in Golf Course Operations (Katsuragi Golf Club):
  • Annual electricity savings of 25 MWh through “green fan” initiatives (greens maintenance) and adjustment of facility air conditioning
  • Annual reductions in CO2 emissions of more than 8 tons achieved by switching from gasoline golf carts to electric carts
  • Approx. 30% reduction in heating boiler fuel consumption (heavy oil) and 1-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 (completed in fiscal 2020)
Improvement of Boiler Efficiency in Hotel Operations (Katsuragi Kitanomaru):
  • Two high-efficiency boilers installed to replace existing boilers in both fiscal 2019 and fiscal 2020
Transition to LED Lighting:
  • Annual electricity savings of 49 MWh through switch to LED lighting and installation of motion sensors in restrooms

Initiatives at Offices

Priority Electricity Conservation Measures

Electricity conservation measures at offices include reducing the amount of lighting (after verifying lighting levels), introducing LED lighting, turning off lit advertisements, halting elevator operation, and notifying employees of electricity consumption amounts to raise awareness.

Transition to LED Lighting

The Yamaha Corporation headquarters is promoting the transition to LED lighting in office spaces, and 1,080 fluorescent lights and mercury lamps have been replaced with LED lighting over the seven-year period spanning from fiscal 2014 to fiscal 2020. As a result, annual electricity consumption has been reduced by 46 MWh. Meanwhile, the transition to LED lighting outside of the Toyooka Factory has produced annual savings of 44 MWh while an additional reduction of 44 MWh in annual electricity consumption has been achieved by replacing approximately 3,200 fluorescent lights inside of the factory with LED lighting over the four-year period from fiscal 2017 to fiscal 2020. Going forward, we will continue to systematically transition to LED lighting in factories and offices.

“Cool Biz” and “Warm Biz” Initiatives

During summer (May to October), we encourage employees to wear cooler attire, such as by not using a necktie, and set the air-conditioning temperature to over 28°C. In winter (November to March), employees are asked to wear warmer clothes so as not to rely too heavily on heating, and the temperature of heaters is set to under 20°C.

[ image ] In-house educational posters promoting the “Cool Biz” and “Warm Biz” programs
In-house educational posters promoting the “Cool Biz” and “Warm Biz” programs

Green Eco Curtain Activities

Green Eco Curtain activities help conserve energy and boost employee awareness through the planting of “curtains” of morning glories, bitter gourds (Momordica charantia), and other vine-type plants along the windows and walls of the buildings.

[ photo ] Green Eco Curtain at Yamaha Corporation’s headquarters office
Green Eco Curtain at Yamaha Corporation’s headquarters office

Initiatives in Logistics

Energy Conservation and CO2 Emissions Reduction in Logistics

The Yamaha Group is working to increase energy efficiency and reduce CO2 emissions in logistics operations together with efforts to improve transportation efficiency and shorten transportation lead times. To this end, we are incorporating CO2 emissions reduction initiatives into various activities. For example, we are working to raise truck and container loading ratios, review warehouse locations and transport routes to shorten transportation distances, examine the possibility of incorporating low-carbon modes of transportation (ships and trains), revise transportation packing specifications, conduct joint transportation with other companies, and dispose of waste in the area it is produced.
The Yamaha Group’s total domestic transport volume (including transportation by domestic sales companies, etc.) in fiscal 2018 remained about the same as fiscal 2017 at 18.59 million ton-kilometers. CO2 emissions were also relatively unchanged year on year at 2,820 t-CO2.
Reducing CO2 emissions from logistics requires the cooperation of transportation companies; so, we are working with them to develop the necessary systems by requesting that the transportation companies we work with cooperate in environmental efforts and incorporating environmental matters into questionnaires.

Resource Conservation and CO2 Emissions Reduction in Piano Frame Transportation

Previously, Yamaha 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.

[ picture ] Distribution flow using returnable packing racks
Distribution flow using returnable packing racks
[ photo ] Returnable packing rack for grand piano frames
Returnable packing rack for grand piano frames
[ photo ] Folded returnable packing rack (when being returned)
Folded returnable packing rack (when being returned)

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

The Yamaha Group designs and standardizes packing boxes according to the sizes of the containers used in transportation, thereby improving container loading ratios. We have thereby been able to reduce the number of containers used and eliminate three tons of associated CO2 emissions a year. The Group has also cut down on paper resource usage by designing packaging that uses as little cushioning and other packaging materials as possible. Going forward, it can be projected that the supply of materials and components from overseas locations to Japan will increase. Our first step to respond to this trend will be to design standard packing boxes for piano components that can be used for transportation between China and Japan, and we are engaged in verification testing with the aim of putting these packing boxes into practical use.

[ picture ] Loading container with pre-standardization packing boxes (left) and loading container with standardized packing boxes (right)
Loading container with pre-standardization packing boxes (left) and loading container with standardized packing boxes (right)

In June 2019, the Yamaha Group announced its endorsement of the recommendations of the TCFD. Based on these recommendations, we are analyzing the risks and opportunities for our business that could result from climate change. The results of these analyses are incorporated into management strategies, and information on the potential financial impacts is disclosed.

Category Initiatives
Governance Addressing climate change has been positioned as an important management strategy and a portion of our sustainability governance and management systems. Climate change and other important sustainability issues are discussed at meetings of the Managing Council, which is headed by the president, at least once a year, and the results of these discussions are reported to the Board of Directors to make for a system of appropriate supervision by the Board of Directors.
Strategy The risks and opportunities that may result from rapid climate change or the accompanying phenomena are incorporated into the important elements of business strategies. For example, the current medium-term management plan includes among its core measures efforts to reduce GHG emissions, develop environmentally friendly products, and realize sustainable timber use.
We recognize that the impacts of rapid climate change will likely be felt over the medium- to long-term. Accordingly, we have defined the associated risks and opportunities from a medium- to long-term perspective looking to 2030 and beyond rather than based on the short-term timeframe of the three-year medium-term management plan. The identified risks will be periodically examined and revised based on internal and external trends going forward.
Risks and Opportunities
The Group employed various scenarios described by the International Energy Agency to determine the risks and opportunities that could occur as a result of the transformation of the operating environment in response to rapid climate change and the accompanying phenomena. The specific scenarios utilized were RCP*10 2.6 (2°C scenario) and RCP 8.5 (4°C scenario). Based on these scenarios, we are evaluating the degree of materiality of risks and opportunities based on their potential financial impact and likelihood of materialization.
  • *10 Representative Concentration Pathways (RCP) scenarios are named based on the hypothetical radiative forcing level (the portion of energy transmitted to the earth that is trapped within its atmosphere) of the earth at the end of the century. For example, RCP 2.6 refers to a scenario in which this radiative forcing level is 2.6 w/m2.
Major Climate Change-Related Risks and Opportunities
Transition Risks and Opportunities
  • Regulatory risks: Increased operating and equipment costs due to expanded carbon pricing (carbon taxes, etc.) and regulation
  • Technological risks: Reduce sales and diminished corporate reputation due to delays in adopting to next-generation product or manufacturing technologies
  • Market opportunities: Increased sales of energy-efficient products (instruments, audio equipment, etc.), voice communication equipment (for remote meetings), thermoelectric devices, and other products that contribute to the realization of a low-carbon or carbon-free society
Physical Risks
  • Abnormal weather risks: Increased damages to the Company or its supply chain from typhoons, floods, droughts, etc.
Risk Management The Risk Management Committee has been established as an advisory body to the president, and regular evaluations and analyses are performed on the potential damages, frequency, and control levels of risks. This process is used to facilitate ongoing improvements in risk control levels by identifying risks and designating the divisions responsible for managing these risks. In addition, the Working Group for BCP and Disaster Prevention Management has been set up under the Risk Management Committee to establish business continuity plans (BCPs) and implement other business continuity management initiatives to address the physical risks associated with natural disasters.
In fiscal 2020, we completed establishment of BCPs for all Yamaha business sites around the world. We have also taken precautionary measures such as installing drainage equipment to safeguard against damages from typhoons, floods, and other natural disasters projected on an individual business site basis. We have also implemented measures such as revising the locations and structure of Company business sites and even external warehouses.
Countermeasures have been put in place for all material risks that have been identified at this point in time, and we are committed to enhancing risk management initiatives going forward to ensure that there are no significant impacts to our business over the medium- to long-term.
Metrics and Targets The Company has set the medium-term targets of reducing total Scope 1 and Scope 2 GHG emissions by 32% and total Scope 3 GHG emissions by 30% from fiscal 2018 levels by fiscal 2031. These targets were certified by international environmental organization SBT in June 2019. In addition, we have set a long-term target of cutting total Scope 1 and Scope 2 GHG emissions by 83% from fiscal 2018 levels by fiscal 2051. On a short-term basis, we have established the target of reducing CO2 emissions per unit of production by 1% or more each year at major domestic business sites.
We manage GHG emissions volumes in accordance with the Greenhouse Gas Protocol, and third-party verification has been received for Scope 1 and Scope 2 and certain Scope 3 emissions since fiscal 2017. Energy consumption amounts pertaining to Scope 1 and Scope 2 emissions are calculated on a by-source basis, which is translated into GHG emissions data using emissions coefficients. Third-party verification is received for this data.
One example of CO2 emissions reduction activities was the fiscal 2020 switch to renewable energy for one-third of the electricity purchased at the Yamaha Corporation headquarters. Looking ahead, we are planning a phased increase in the portion of electricity purchased from renewable sources.