Sustainability challenges and targets

In regard to sustainability challenges and targets (materiality), we identified issues of high importance by evaluating trends in the international community and social issues that are closely related to us from two perspectives: ① importance to stakeholders, ② importance to YASKAWA.

These issues were discussed at internal meetings, including those of the Board of Directors, and issues of particular importance were identified as materiality. We have also clarified the direction of each focus area and strategy, and set quantitative and qualitative KPIs. Through the resolution of identified materiality issues, we are working to realize a sustainable society and increase corporate value, which we aim to achieve under our sustainability policy.

Sustainability Challenges and Targets（Materiality）and Their Progress

Create Social Value and Solve Social Issues through Business Activities

Materiality	Realize revolutionary industrial automation with partners through “i³-Mechatroncis”
Desired Outcomes	Solve customer management issues with i³-Mechatronics, a solution concept
Initiatives	Accumulation of “i³-Mechatronics” project success cases
FY2022 Results	• Strengthened customer approach with key products (YRM-X controller, Sigma-X series, YASKAWA Cockpit) based on i³-Mechatronics concept • Expansion of results through collaboration with top manufacturers in each industry

Materiality	Build clean social infrastructure and foundation for safe and comfortable living
Desired Outcomes	(a) Use Yaskawa’s technological capabilities to improve the environmental performance of products and reduce the environmental impact of the world by expanding sales (b) Apply and expand Yaskawa’s existing mechatronics technology and take on new domains
Initiatives [Targets]	(a) Achieve CCE 100 (Contribution to Cool Earth 100)^*1 [FY2025: 100 times] (b) Expanding examples of mechatronics technology applications
FY2022 Results	(a) 67.4 times (b) Promoted initiatives in mechatronics application areas with a focus on energy conservation, clean power, food and agriculture, and humatronics

Materiality	Develop new technologies and business domains through open innovations
Desired Outcomes	(a) Leverage M & A / Alliance to provide feedback on business expansion and technology in new areas (b) Promote external collaboration to develop the world’s first and best technologies and products (c) Demonstrate business synergies through venture investment and collaboration
Initiatives	(a) Strengthen initiatives in new areas through M & A and alliances (b) Reinforcement of Industry-Academia-Government collaboration (c) Expansion of venture investments by YIP^*2
FY2022 Results	(a) Continued aggressive search for growth opportunities through M&A/alliances to create technological synergies in our company’s business areas of factory automation and mechatronics applications (b)Promoting Industry-Academia-Government collaboration in and outside Japan on research and development that contributes to our company’s future technologies (c) Venture investments: 2 (Cumulative number: 19)

Strengthen Management Foundation that Contributes to Sustainable Society/Businesses

Materiality	Sustainable and productive manufacturing
Desired Outcomes	(a) Promote global production efficiency and optimization through domestic and overseas expansion of the “Yaskawa Solution Factory” concept (b) Reduce CO₂ emissions and address global climate change issues (c) Provide optimal maintenance throughout the life cycle with the ultimate goal of “not stopping customer equipment” (d) Implement supply chain management based on adherence to sustainable procurement guidelines
Initiatives [Targets]	(a) Introduction of cutting-edge manufacturing • Improving production efficiency at own plants (improving productivity indicators^3) [FY2022: +19%^4 FY2025: +23% (compared to FY2019)] (b) Reduction of greenhouse gas emission through the Green Process • Reducing greenhouse gas (CO₂) emissions [FY2025: -30%^5 (compared to FY2018)] (c) Improvement of product safety and quality • Product safety through our group’s Product Liability Committee [Fiscal 2022: Strengthening global development of activities to pinch off the “bud of PL” 6] • Improving product quality through the introduction of new systems [FY2022: Start of global operation of market quality information centralized system] (d) Construction of a sustainable supply chain • Improving the rate of compliance with Sustainable Procurement Guidelines [FY2022: Compliance rate: 100%^*4 (target: major suppliers of Yaskawa Electric) FY2025: Compliance rate: 100% (target: major suppliers of Yaskawa Group)]
FY2022 Results	(a) Productivity indicators: +21% (compared to FY2019) (b) -20.0% (compared to FY2018) (c) • Global development of activities to pinch off the “bud of PL” (No. of buds: 19, Product improvement development: 1) • Centralization of quality information on a global scale (managing market quality information by coding and centralizing data from global production sites) (d) Compliance rate: 100% (target: major suppliers of Yaskawa Electric)

Materiality	Create a rewarding workplace and human resource development
Desired Outcomes	(a) Demonstrate the strengths of diverse human resources by promoting the active participation of women (b) Develop human resources based on personnel philosophy and improve the job satisfaction of employees (c) Eliminate work stoppage accidents and create a safe workplace (d) Raise employees’ awareness of human rights and create a workplace where human rights are respected (e) Promote social contribution activities to coexist and co-create with local communities by developing human resources for the evolution of manufacturing
Initiatives [Targets]	(a) Diversity and inclusion • Raising the ratio of female managers [FY2025: Non-consolidated/Group in Japan: Double (compared to FY2021)] (b) Human resource development • Increase the ratio of professional human resources^7[FY2025: Corporate average 75% or more^8] (c) Occupational safety • Improvement of lost-time injury frequency rate [FY2025: Non-consolidated: Maintain 0.2 or less Major production bases in Japan and overseas: Maintain 0.4 or less] (d) Human rights and work practices • Implementation and establishment of human rights due diligence processes for employees [FY2022: Implementation of human rights due diligence for group companies in Japan FY2025: Implementation at all global sites^*9] (e) Contribution to local communities • Development of human resources in science and engineering who will realize “evolution of manufacturing” [FY2022: Launch of a new manufacturing human resource development program]
FY2022 Results	(a) Ratio of female managers: 1.8 times (non-consolidated), 1.5 times (domestic group) (compared to the beginning of FY 2021) (b) Professional rating ratio for all skill items: 41%^*10 (c) Lost time injury frequency rate: 0.00 (non-consolidated), 0.12 (domestic group), 0.22 (global) (d) Implementation of human rights due diligence for domestic groups Assess the current status of initiatives at major global sites (e) YASKAWA Innovation Center Visitors: 7,837 Implementation of a new manufacturing human resource development program

Materiality	Fair and transparent governance system
Desired Outcomes	(a) Promote sustainable growth and increase corporate value through constructive dialogue with investors (b) Raise the level of the security organization and build an autonomous and continuous information security system (c) Prevent escalation by early detection of compliance risks
Initiatives [Targets]	(a) “Aggressive” governance system utilizing the Corporate Governance Code • Implementation of the Principles of the Corporate Governance Code (Reasonable explanation where not implemented) (b) Strengthening of information security • Internal and external security monitoring/measures in systems and security level evaluation/improvement by external auditing organizations (c) Enhancement of compliance • Strengthen compliance through internal reporting
FY2022 Results	(a) Implementation of the principles of the Corporate Governance Code required of companies listed in “prime market” (b) Implementation of security threat analysis, risk investigation, and early countermeasures for in-house systems through the introduction of services (c) Continued appropriate responses to whistleblowing and other compliance issues

*1 Target to reduce CO₂ emissions from our products by more than 100 times by 2025.

*2 Abbreviation of Yaskawa Innovation Program. New business creation scheme with CVC functions launched in FY2016.

*3 Revenue per person for indirect and direct personnel at plants in Japan (compared to FY2019).

*4 Target was revised in April 2022.

*5 The target value was changed following the revision of the 2050 carbon neutral target in May 2022.

*6 Target was set in October 2022.

*7 A person at the level of being able to teach others or perform alone in the skills within a task to which he or she is assigned.

*8 Target was revised in April 2022.

*9 Target was revised in October 2022.

*10 Percentage of all skill items set at the end of FY2022 that are at or above a certain skill level.