Materiality

Identifying materiality

Yaskawa first identified its materiality in FY2021. With the formulation of the new long-term and mid-term business plans starting in FY2026, we have reassessed and identified our materiality. Going forward, we will continue to update our materiality in response to changes in the business and external environment.

Step 1. Identifying sustainability issues

Identifying sustainability issues

Based on social demands, the external environment, and our business strategy, we identified sustainability issues, including risks and opportunities. After eliminating overlaps, we created a long list of 231 items.
We then grouped and organized similar issues into a shortlist of 39 items.
The identification process reflected international frameworks, including the GRI Standards, ISO 26000, SASB Standards, and the SDGs, as well as medium- to long term sustainability risks and dialogue with investors.

Step 2. Assessing sustainability issues

Assessing sustainability issues

We evaluated the 39 sustainability issues from two perspectives: importance to stakeholders and importance to Yaskawa, and identified the issues most material to our business.
The assessment also considered impacts across our value chain, including suppliers, the Yaskawa Group, and customers.

Assessment of Sustainability Issues

Step 3. Determining materiality

Determining materiality

In alignment with our long-term and mid-term business plans, we established materiality encompassing the most important sustainability issues. The identified materiality was reviewed and approved by the Sustainability Committee and the Board of Directors.
This process is conducted when formulating mid-term business plans and is also reviewed annually when significant environmental changes require reassessment.

Materiality

Through the above process, we identified seven materiality themes. As a newly established independent theme, we added materiality related to climate change. YASKAWA has long promoted climate change initiatives through both Green Process and Green Products. However, as social expectations for corporate action on climate change continue to increase, we have positioned climate change as a standalone materiality theme to further clarify our commitment to this issue.

Through initiatives addressing these materiality themes, we will strengthen our medium- to long-term growth potential and business resilience while contributing to the realization of a sustainable society and the enhancement of corporate value. For each materiality theme, we have established our desired state, key initiatives, indicators, and targets in alignment with the mid-term business plan, and these have been reviewed by the Sustainability Committee and approved by the President.

Medium- to long-term targets for materiality under Dash 35

Materiality Sustainability Issues
(Risks and Opportunities)		 Desired State in 2035 Initiatives under Dash 35 (FY2026-FY2029)
Create Social Value and Solve Social Issues through Business Activities Initiatives and KPIs Targets for
FY2029 (Scope)
1. Contributing to sustainable social development through i3-Mechatronics ○ Technological innovation
○ Labor-saving and automation
○ Partnerships
○ Customer satisfaction
○ AI
○ Labor shortages		 Contribute to the sustainable development of society by expanding the mechatronics domain through technological innovation Expand the implementation of i3-Mechatronics to solve customers’ management challenges

2. Creating better living through expansion of new mechatronics applications

 ○ Labor-saving and automation
○ Partnerships
○ AI		 Expand application fields through the creation of ecosystems with diverse partners and contribute to the realization of a safe and secure society Expand businesses in the medical and pharmaceutical fields, as well as the food and agriculture fields
3. Advancing mechatronics technologies in step with digital innovation ○ Innovation
○ Digital technologies
○ Partnerships
○ AI		 Address social challenges by utilizing AI and data to develop technologies based on real-world needs and validating them through practical implementation Implement Physical AI in society through the expansion of automation application fields
4. Contributing to a decarbonized society through reduced environmental impact from operations and products ○ Climate change Contribute to reducing environmental impact across society by reducing CO2 emissions from business activities (Green Process) and by delivering CO2 reduction contributions through products (Green Products) Reduction of CO2 emissions through Green Process
● CO2 emissions reduction rate (Scope 1 + 2)		 ● 46% reduction compared with
FY2018
(Group-wide)
CO2 reduction contributions through Green Products
● Cumulative CO2 reduction contribution through products
(from FY2026 onward)		 ● 120 million tons
(Group-wide)
Strengthen Management Foundation that Contributes to Sustainable Society/Businesses Sustainability Issues
(Risks and Opportunities)		 Desired State in 2035 Initiatives under Dash 35 (FY2026-FY2029)
Initiatives and KPIs Targets for
FY2029 (Scope)
5. Sustainable and highly productive manufacturing ○ Labor shortages
○ Labor-saving and automation		 Establish an efficient production system capable of flexibly responding to changes in demand through the implementation of i3-Mechatronics Expand automation and establish a production platform utilizing manufacturing data to improve productivity and responsiveness to high-mix, variable-volume production
● Revenue per direct and indirect employee		 ● +30% compared with FY2025
(Major production sites)
○ Product safety and quality Deliver quality that earns customer trust by prioritizing safety and by viewing quality not only as product excellence but also as the extent to which customer needs are fulfilled Expand product improvements based on customer needs identified through field information obtained from market activities
● Achievement of improvements based on customer needs identified from field information		 ● 200% compared with FY2025
○ Supply chain management Build a resilient procurement structure and realize a robust supply chain Conduct individual hearings with suppliers identified as high risk based on the results of human rights due diligence through SAQS (Self-Assessment Questionnaires) aimed at ensuring compliance with the Sustainable Procurement Guidelines.
● Compliance rate with Sustainable Procurement Guidelines		 ● 100%
(Major Group suppliers)
6. Maximizing human capital value and productivity through job satisfaction ○ Diversity promotion Promote workforce diversity and expand opportunities for employees to thrive in order to build an organizational foundation where diverse talent can succeed Increase the appointment of diverse talent to decision-making positions
● Ratio of female managers		 ● 3.5%
(YASKAWA Electric non-consolidated)
○ Human resource development Build and enhance a human resource management foundation that systematically secures and develops necessary talent while supporting the career development of each employee 1. Secure necessary talent by clarifying workforce plans and talent requirements aligned with business strategy
● Plan fulfillment rate		 ● 100%
(Domestic Group and overseas expatriates)
2. Develop next-generation management talent and key personnel systematically based on succession plans
● Plan fulfillment rate		 ● 100%
(Domestic Group and overseas expatriates)
3. Transform into a “challenging yet rewarding workplace” that encourages growth and development
①Positive response rate to the employee engagement survey regarding job satisfaction
②Positive response rate to the employee engagement survey regarding perceived personal growth		 ①② 80% or higher
(Domestic Group)
○ Occupational safety and health Strengthen safety management systems to prevent serious occupational accidents by enhancing the effectiveness of occupational health and safety management systems Implement thorough activities to prevent the recurrence of occupational accidents
● Number of serious occupational accidents in major sites in Japan		 ● Zero
(Major sites in Japan)
○ Health and productivity management Improve productivity by increasing the number of employees who can work in good health and with vitality Maintain certification under the Health and Productivity Management Outstanding Organization Program at an advanced level
● Certification as a Health and Productivity Management Outstanding Organization		 ● Continued certification
(YASKAWA Electric non-consolidated)
○ Respect for human rights Continuously improve systems and initiatives related to respect for human rights in response to changes in the business environment Enhance and globally expand human rights due diligence
①Annual implementation rate of human rights due diligence
②Implementation rate of global human rights education		 ①② 100%
(Group-wide)
○ Community engagement Maximize long-term corporate value and coexist with society through social contribution activities unique to YASKAWA Establish social contribution activity plans at major global sites
● Execution rate of social contribution activity plans at major global sites		 ● 100%
(Major global sites)
7. Establishing effective governance and risk management systems ○ Corporate governance
○ Stakeholder engagement		 Establish a governance framework in which the supervisory and executive functions of the Board of Directors operate effectively Enhance the effectiveness of outside directors
● Opportunities for advice and recommendations, including directors’ discussion meetings (enhancing information exchange outside formal Board meetings)		 ● At least three times per year
(YASKAWA Electric non-consolidated)
Improve the composition of the Board of Directors
● Ratio of outside director		 ● Maintain the ratio of more than 50%
(YASKAWA Electric non-consolidated)
Establish and operate a CEO succession plan
● Number of Nomination Advisory Committee deliberations		 ● Continue holding at least twice per year
(YASKAWA Electric non-consolidated)
○ Information security Ensure reliability, security, and business continuity across the entire system through autonomous security management Build an IT-BCP※1 that prevents business interruption through strengthened zero-trust security
○ Compliance Establish systems and mechanisms to put compliance into practice (PDCA cycle) throughout the YASKAWA Group Establish a PDCA framework within business divisions to strengthen compliance implementation in Japan
● Positive response rate for compliance implementation assessments in each business division		 ● 80%
(YASKAWA Electric non-consolidated)
Build a network in which YASKAWA Electric and regional headquarters collaborate to standardize compliance practices overseas
● Stable operation of the global compliance cooperation framework 		● 100%
(Major overseas sites)
○ Risk management Achieve resilient management capable of responding agilely to constantly changing global risks and crises Establish and globally implement enterprise risk management (ERM)
①Introduction rate of risk management systems at regional headquarters
②Implementation rate of risk management structures and operations at YASKAWA Electric and regional headquarter		 ①② 100%
(Group-wide)

※1 Information Technology Business Continuity Plan

Progress of initiatives under the previous mid-term business plan “Realize 25”

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” solution concept and contribute to the improvement and evolution of society and production activities.
Initiatives Accumulation of “i3-Mechatronics” project success cases
FY2025
results
  • ・ Strengthened iCube Control to realize i3-Mechatronics through the launch of the YRM1030 and iC9200, as well as expanded sensing and autonomous control functions in the Σ-X Series AC servo drives, contributing to energy savings, higher operating rates, and longer equipment life
  • ・ Promoted collaboration with partners in various fields through the i3-Mechatronics CLUB and accumulated successful sales activities based on i3-Mechatronics
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) Contribute to the realization of a sustainable society through the challenge of developing new fields by applying mechatronics technology.
Initiatives
  • (a) Achieve CCE 100 (Contribution to Cool Earth 100) *1
    [FY2025: 100 times]
  • (b) Expand examples of mechatronics technology applications, mainly in the four fields of energy conservation, clean power, food and agriculture, and biomedical
FY2025
results
  • (a) 101.3 times
  • (b)・Expanded sales of inverters that contribute to miniaturization and higher efficiency in cooling systems for data centers
    ・ Began sales of the “Enewell-SOL P3H” photovoltaic power conditioner targeting replacement demand
Materiality Develop new technologies and business domains through open innovations
Desired
outcomes
  • (a) Create new value for society through business expansion in new fields through M&A/alliances.
  • (b) Promote external collaboration to develop the world’s first and best technologies and products
Initiatives
  • (a) Strengthen initiatives in new areas through M&A and alliances
  • (b) Reinforcement of Industry-Academia-Government collaboration
FY2025
results
  • (a) ・ Began deployment of the cucumber harvesting robot developed jointly with JA Zen-Noh in agricultural production sites
    ・ Established Cellafa Biosciences Co., Ltd., a joint venture with Astellas Pharma Inc. to develop and provide manufacturing platforms for regenerative medicine-related products
  • (b) Strengthened industry-academia-government collaboration based on technology roadmaps for R&D contributing to future technologies

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) Improve brand image through product safety and security
  • (d) Implement supply chain management based on compliance with sustainable procurement guidelines
Initiatives
［Targets］
  • (a) Introduction of cutting-edge manufacturing
    • Improving production efficiency at own plants (improving productivity indicators*2)
    [FY2022: +19%*3 FY2025: +34% (compared to FY2019) *4]
  • (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
    • Ensuring product safety through the Group’s Product Liability Committee
    [FY2025: Implementation rate of risk assessment for “bud of PL” cases: 100%*6]
    • Improving product quality through the introduction of new systems
    [FY2025: Add two sites to global operation of market quality information centralized system*7]
  • (d) Construction of a sustainable supply chain
    • Improving the rate of compliance with Sustainable Procurement Guidelines [FY2022: Compliance rate: 100%*3 (Target: Major suppliers of Yaskawa Electric) FY2025: Compliance rate: 100% (Target: Major suppliers of the Yaskawa Group)]
FY2025 results
  • (a) Productivity indicator: +28% compared with FY2019
  • (b) CO2 emissions: −35.4% compared with FY2018
  • (c)
    • Risk assessment implementation rate: 100%
    • Added India and Korea to the global market quality information management system
  • (d) Achieved 100% compliance with Sustainable Procurement Guidelines through supplier SAQS and corrective actions for high-risk suppliers
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 lost-time accidents and create a safe workplace
  • (d) Aim for the sustainable development of the company and its employees by improving productivity by creating an environment in which each employee can work with peace of mind and make the most of his or her abilities
  • (e) Raise employees’ awareness of human rights and create a workplace where human rights are respected
  • (f) 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: 3.4%*8］
  • (b) Human resource development
    • Increase the ratio of professional human resources*9
    [FY2025: Corporate average 20% or more*10]
  • (c) Occupational health and 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) Health management*11
    • Improvement of indicators for the realization of health management
  • (e) 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: Consideration of measures to meet the requirements of EU sustainability laws*12]
  • (f) Contribution to local communities
    • Development of human resources in science and engineering who will realize “evolution of manufacturing”
    [FY2025: Hold a new program of “Robot Handmaking Event” 6 sessions]
FY2025 results
  • (a) Ratio of female managers: YASKAWA Electric: 3.1%, Domestic Group: 3.5%
  • (b) Ratio of professional personnel: 11%
  • (c) Lost-time injury frequency rate: YASKAWA Electric: 0.32, Domestic Group: 0.26, Global: 0.45
  • (d) Improved 3 of 10 management indicators year-on-year.
    Continued certification as a Health and Productivity Management Outstanding Organization 2026
  • (e) Continued e-learning programs and human rights due diligence within Japan.
    Globally revised the YASKAWA Group Human Rights Policy and examined human rights due diligence based on international standards and EU sustainability regulations.
  • (f) Held the new “Robot Handmaking Event” program 8 times
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
  • (a) Effective governance based on 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
    • Strengthen cooperation by holding meetings with compliance officers overseas
FY2025 results
  • (a) Continued implementation of governance in accordance with the Corporate Governance Code applicable to Prime Market listed companies
  • (b)
    • Enhanced endpoint protection and strengthened continuous monitoring, detection, and response capabilities for cyberattacks
    • Strengthened information security personnel and governance systems. Established audit frameworks at global sites and ensured compliance with local regulations.
  • (c)
    • Continued appropriate responses to whistleblowing reports and other compliance cases
    • Held compliance meetings involving both domestic and overseas compliance officers

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

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

*3 Target was revised in April 2022.

*4 Target was revised in April 2024.

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

*6 Target was set in April 2024.

*7 Target was set in April 2025.

*8 Target was revised in June 2024.

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

*10 Definition of professional human resources and target values were revised in June 2024

*11 Initiatives were added in April 2024

*12 Target was revised in April 2024

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