Promotion of Social Responsibility in the Value Chain

• Initiative and Promotion Frameworks
• Promotion of Sustainability in the Supply Chain
• Responsible Raw Material Procurement
• Communication with Business Partners

Initiative and Promotion Frameworks

The Yamaha Group promotes sustainability throughout the entire value chain in areas such as product and service development, raw material procurement, manufacturing, selling, and recycling. The Working Group for Procurement and Working Group for Human Rights, DE&I, both of which are chaired by an executive officer, have been established under the Sustainability Committee, which is chaired by the president. These working groups are responsible for matters related to environmental, human rights, and other supply chain sustainability issues including the establishment of internal frameworks, measures, targets, and action plans; the promotion of initiatives through coordination with the relevant divisions; and the monitoring of these initiatives.

Promotion of Sustainability in the Supply Chain

Yamaha’s Supply Chain

Yamaha produces and sells musical instruments, audio equipment, and a wide variety of other products. These products are primarily manufactured and assembled by Yamaha Group companies with bases in Japan, China, Indonesia, Malaysia, and India, although we also employ the services of manufacturing contractors. The raw materials, components, and other items required to manufacture these products are procured from suppliers around the world.

Location of Yamaha Production Sites and Major Products Manufactured

As of March 31, 2025

Initiatives at Group Manufacturing Bases

The status of labor conditions, occupational health and safety, and environmental management at Yamaha Group companies that function as production sites is monitored by dedicated staff members from corporate divisions based on Group regulations and standards. These staff members offer support for developing frameworks and advice for implementing improvements with regard to these matters.

Initiatives Targeting Suppliers

The Yamaha Group has defined policies concerning the procurement of raw materials and components. Suppliers are selected according to the standards set in the Yamaha Group Purchasing Philosophy as the Group seeks to practice procurement in a way that is responsible to the environment and society.

Moreover, Yamaha Corporation participates in the CSR committee of the Japan Electronics and Information Technology Industries Association as part of its efforts to promote sustainability in the supply chain through industry coordination.

Yamaha Policies Related to Procurement

Requests for Compliance with the Yamaha Supplier CSR Code of Conduct

Suppliers are asked to adhere to the Yamaha Supplier CSR Code of Conduct, which contains items pertaining to labor, human rights, the environment, and other sustainability considerations. Adherence to the code may be stipulated in basic transaction contracts. If not, documents confirming the consent of suppliers to adhere to the code will be collected. Suppliers of raw materials and parts, goods and services for sale purchased by service and sales companies, and items used and consumed by the Yamaha Group are asked to comply with the stipulations of the Yamaha Supplier CSR Code of Conduct. As of March 31, 2025, documents confirming consent to adhere to the code had been received from 1,618 suppliers. Together with the some 2,900 suppliers expressing consent via basic transaction contract conditions, this makes for approximately 4,500 consenting suppliers.

Assessments of Suppliers

Suppliers are expected to adhere to the Yamaha Supplier CSR Code of Conduct. In addition, paper audits and on-site audits of suppliers of raw materials and components, among other suppliers, are conducted prior to commencing transactions with a new supplier and regularly thereafter.

In fiscal 2025, paper audits via self-assessment questionnaires (SAQs) were conducted of 73 suppliers with which transactions were commenced. In addition, a simultaneous supplier self-assessment of 2,312 existing suppliers was administered in fiscal 2023, and completed questionnaires had been received from 2,271 suppliers as of March 31, 2024. Roughly 40% of the suppliers subject to the self-assessment were located in Japan while 30% were in China and 15% were in Indonesia. The remaining suppliers were positioned in countries such as Malaysia, India, Germany, and the United States. Requests for corrective actions were submitted to 417 companies that had low scores for any of the 19 items deemed to be of high materiality among the approximately 40 total items. The progress of corrective actions at 388 companies had been confirmed via paper assessment as of March 31, 2025. In fiscal 2025, reports were received of violations of the human rights of migrant workers at suppliers in Malaysia. In response to these reports, additional paper audits were conducted targeting 58 suppliers in Malaysia based on the high risk of human rights violations in this country. Corrective measures were requested of the 42 companies at which risks were identified.

We also perform on-site audits at suppliers selected based on their location, transactions with the Company, and self-assessment results. Since December 2023, on-site audits by external experts have been conducted at a total of 60 suppliers, including 18 suppliers in Japan, 22 suppliers in China, nine suppliers in Indonesia, 10 suppliers in Malaysia, and one supplier in India. These suppliers were asked to respond to the guidance provided in these audits. Through these audits, we were able to achieve the medium-term management plan target of auditing 60 suppliers in and after fiscal 2023.

As for the companies that refuse to cooperate with audits or are not proactive in implementing corrective measures, we are assessing the risks associated with such suppliers based on disclosed information and their locations while reevaluating our business relationships with these suppliers.

Frequently Seen Examples of Non-Conformance

Paper Audits (SAQs)

Lack of evacuation training; insufficient tracking, management, and treatment of hazardous substances in wastewater and lack of appropriate disclosure of relevant information

Additional Paper Audits of Companies in Malaysia

Retention of passports or other identification documents; insufficient space in dormitories; lack of explanation regarding pay deductions

On-Site Audits

Retention of passports or other identification documents; expiration of business licenses; insufficient management of employment contracts, attendance records, or payment records; non-conformity with minimum wage or working hour regulations; lack of evacuation routes or disaster prevention equipment at dormitories or other facilities; inappropriate management of hazardous or chemical substances; insufficient grievance mechanisms

Response to Claims and Reports of Human Rights Violations (Grievance System)

The Yamaha Group is proactive in its response to consultations and reports regarding human rights violations across the supply chain. For example, we joined the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER) in October 2022 and are accepting claims filed through its Engagement and Remedy Platform. As of March 31, 2025, the Company had received three reports of human rights violations (two through the JaCER platform). Measures for responding to these reports are underway. Going forward, we will continue accepting reports through this platform while promoting understanding regarding the platform.

Training and Education

The Yamaha Group promotes internal training for its employees responsible for procurement to ensure fair trade. Topics of this training include the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (the “Subcontractors Act”), laws related to contracts, and various regulations related to trade and procured goods. In addition, responsible procurement training is provided to employees charged with assessing the status of compliance with the Yamaha Supplier CSR Code of Conduct at suppliers. Briefings related to sustainable timber procurement, which include confirmations of timber legality, are held each year.

Meanwhile, suppliers are informed about the Yamaha Supplier CSR Code of Conduct through requests for adherence to the code and SAQs. In fiscal 2025, external instructors were invited to conduct workers’ human rights seminars for suppliers in Japan focused on the measures that can be taken in relation to business and human rights.

Responsible Raw Material Procurement

In the procurement of natural resources and other raw materials, it is important to practice responsible procurement out of consideration of the potential impacts on the environment and society. The Yamaha Group is focused on themes that include green procurement and the sustainable procurement of timber, an important material for instruments and other products.

Responsible Mineral Procurement

The Yamaha Group works to procure minerals that play no part in the violation of human rights or environmental destruction. We respond to customer requests to conduct due diligence activities, and also ask suppliers to take similar steps based on the Yamaha Supplier CSR Code of Conduct.

In fiscal 2023, a simultaneous assessment of suppliers was used to assess conditions regarding the procurement of tin, tantalum, tungsten, and gold. Based on the assessment results, 481 companies deemed as having the potential to be dealing with conflict minerals were asked to investigate their smelters and the countries of production using the Conflict Minerals Reporting Template of the Responsible Minerals Initiative. Responses were received from 333 of these companies, and we continue to request responses from those companies that have yet to submit them. The future steps to be taken will be determined based on aggregation and analyses of the results of the Conflict Minerals Reporting Template investigations.

Communication with Business Partners

The Yamaha Group promotes communication with business partners and subcontractors. In Japan, we share information about management, production, and sales trends to suppliers that provide us with raw materials, parts, and equipment and to subcontractors that supply distribution, construction, and other services. We also work together with these partners to contribute to worker safety and environmental preservation while striving to foster an atmosphere in which it is easy to share thoughts through relationship-building activities. In addition, we hold lectures on the United Nations Sustainable Development Goals (SDGs) at gatherings of suppliers in Japan in an effort to promote sustainability together with suppliers. During these lectures, we provide overviews of the SDGs and introduce Group initiatives related to human rights and other matters. Furthermore, we confirm the status of compliance and CSR measures at the waste treatment subcontractors used by domestic production sites through site visits and other measures. We have also joined the Shizuoka Industrial Waste Association of Shizuoka Prefecture, where we have production sites, as a waste producer. As a member of this organization, we engage in communication through exchanges of waste treatment information and support for facility tours and other events.

Communication Activities

Annual general meetings of business partner organizations related to procurement, distribution, and equipment: Three times a year (once per each function)
Briefing session on trends in production and sales for business partner organizations related to procurement: Once a year
Safety and health inspection patrols: Confirmation of construction work at one business site in fiscal 2025
On-site confirmation of compliance status of waste treatment subcontractors: On-site confirmation at 33 companies (25 existing and 8 new) in fiscal 2025

Partnership Declaration

Yamaha Corporation has announced its Partnership Declaration, which details its commitment to building harmonious partnerships with suppliers to heighten value across the supply chain. This declaration reflects our endorsement of the aims of the Cabinet Office’s committee for promoting the establishment of future-shaping partnerships. This committee’s membership includes the chairman of Keidanren (Japan Business Federation), the chairman of the Japan Chamber of Commerce and Industry, the president of the Japanese Trade Union Confederation, and the heads of the Cabinet Office; the Ministry of Economy, Trade and Industry; the Ministry of Health, Labour and Welfare; the Ministry of Agriculture, Forestry and Fisheries; and the Ministry of Land, Infrastructure, Transport and Tourism.

Socially Responsible Logistics

Endorsing the ideals of socially responsible logistics advocated by the Ministry of Land, Infrastructure, Transport and Tourism; the Ministry of Economy, Trade and Industry; and the Ministry of Agriculture, Forestry and Fisheries, Yamaha Corporation submitted its Declaration of Voluntary Action for Realizing Sustainable Logistics. This declaration puts forth our policies for working with suppliers and logistics business operators to improve logistics activities in pursuit of higher productivity and reformed workstyles.