Sustainability Management

• Sustainability Initiatives
• Promotion System
• Material Sustainability Issues
• Awareness Raising

Sustainability Initiatives

The Yamaha Group is advancing initiatives for contributing to the realization of a sustainable society in accordance with the Yamaha Group Sustainability Policy. This policy was formulated based on the Group’s material sustainability issues, which were shaped by the relationship between its business activities and the environment and society as well as on stakeholder expectations and social demands. We thereby aim to contribute to the well-being of people around the world.

Promotion System

Under the guidance of the Board of Directors, Yamaha Corporation established the Sustainability Committee as an advisory body to the president. This committee is tasked with discussing directives for Groupwide sustainability initiatives, monitoring Group initiatives, and reporting to the president on these matters. The Board of Directors receives and reviews regular reports on discussions by the Sustainability Committee and the status of sustainability activities throughout the Group.

Five working groups—the Working Group for Climate Change, Working Group for Resource Circulation, Working Group for Procurement, Working Group for Human Rights, DE&I, and Working Group for Social and Cultural Contributions—have been formed under the Sustainability Committee. The working groups establish frameworks for advancing initiatives based on important Group themes; formulate policies, targets, measures, and activity plans; advance and monitor activities; and report on these matters to the Sustainability Committee.

Fiscal 2025 Sustainability Committee Meetings

Meetings: 7
Major agenda items:

• Review of fiscal 2024 sustainability initiatives and confirmation of disclosures, including those based on Task Force on Climate-related Financial Disclosures (TCFD) and Taskforce on Nature-related Financial Disclosures (TNFD) recommendations
• Progress, results, and challenges in fiscal 2025
• Measures, key performance indicators (KPIs), and targets for the next medium-term management plan

Working Group Activities in Fiscal 2025

Sustainability Promotion System

Oversight and Other Activities by the Board of Directors in Fiscal 2025

Major activities:
Monitoring of Sustainability Committee activities: Twice
Discussions with external expert (Naoki Adachi, CEO, Response Ability, Inc.): Once

Major agenda items:

• Sustainability policies and targets
• Regular review of sustainability measures, etc.

Connection Between Officer Compensation and Targets

In fiscal 2023, sustainability targets were introduced as part of the management targets used to evaluate restricted stock compensation, which accounts for a portion of officer remuneration. This change was made to strengthen motivation for ongoing improvements in social value.

Management Targets

Material Sustainability Issues

The Yamaha Group has defined material sustainability issues for contributing to sustainable development and medium- to long-term improvements in corporate value based on the relationship between its business activities and the environment and society as well as on stakeholder expectations and social demands. Initiatives for addressing these issues are currently underway.

Identified Material Sustainability Issues

Environment

Response to climate change

• Reduction of CO₂ emissions from business sites (Scope 1 and Scope 2)
• Reduction of CO₂ emissions from procurement, logistics, and product use (Scope 3)

Sustainable use of timber

• Sustainable sourcing and utilization of timber
• Promotion of forest cultivation

Resource savings, reduction of waste and hazardous substances

• Resource savings and improved resource recycling of products and packaging
• Reduction of hazardous chemical substances (volatile organic compounds (VOCs), etc.)

Society

Contribution to an equal society and comfortable lives

• Mental and physical safety and health
• Remote communication
• Consideration for universal design and accessibility

Respect for human rights in the value chain

• Human rights of workers at suppliers, etc.

Culture

Spread and development of music culture

• Products, services, and activities that contribute to the promotion and development of music culture
• Contribution to the development of the next generation

Human Resources

Foster a creative and ambitious organizational culture

• Human resource development; employee engagement surveys; creation of opportunities for dialogue; promotion of work–life balance, safety, and health; etc.

Respect for human rights and DE&I (diversity, equity, and inclusion)

• Initiatives to respect the human rights of people who work with Yamaha (human rights education and due diligence)
• DE&I promotion (gender, nationality, etc.)

Material Issue Identification Process

Sustainability issues pertaining to the Yamaha Group’s value chain were identified with reference to the United Nations Sustainable Development Goals (SDGs) and other relevant materials. The level of priority of these issues was then assessed based on input from customers, employees, and community members; environmental, social, and governance (ESG) evaluation criteria; opinions and requests from NGOs; advice from external experts; our corporate philosophy and vision; and medium- to long-term management policies. We thereby identified the material issues requiring an enhanced approach.

Based on the material sustainability issues, KPIs for gauging the progress of measures by the Sustainability Committee working groups and relative divisions was established along with related targets and action plans. The material sustainability issues will be assessed and reviewed as appropriate going forward. The Sustainability Committee is responsible for monitoring the progress of initiatives pertaining to material issues.

Awareness Raising

At the Yamaha Group, employees are promoting sustainability in their respective roles and jobs in order to contribute to the realization of a sustainable society. In addition, sustainability education and awareness-raising elements are being incorporated into the rank- and field-based training and seminars, intranet postings, internal events, and Company newsletters. We also provide a range of content for learning about external trends, including sustainability quizzes that offer an easy way to study sustainability and the SDGs as well as case studies designed to help employees learn from examples of companies on the forefront of sustainability. Furthermore, an annual sustainability seminar is arranged for all Group employees. In fiscal 2025, an online seminar was organized in which Makiko Soma from WWF Japan provided insight pertaining to biodiversity, an indispensable topic to the Yamaha Group given that it is promoting sustainable timber use.