Sustainability Challenges and Targets

Materiality
Progress of the initiatives

Materiality

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.

Progress of the initiatives

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
FY2024 results	• Strengthened customer approach with key products (MOTOMAN NEXT series, YRM controller, Sigma-X series, YASKAWA Cell Simulator, YASKAWA Cockpit) based on “i³-Mechatronics” concept • Expanded i³-Mechatronics CLUB and accelerate collaboration with CLUB members

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
FY2024 results	(a) 93.6 times (b) • Promoted initiatives in mechatronics application fields mainly in energy conservation, clean power, food and agriculture, and biomedical • Launched “LA700,” a dedicated AC drives that contribute to reducing power consumption in elevators • Expanded sales of a PV inverter, “Enewell-SOL P3A” to the domestic self-consumption market

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
FY2024 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 • Concluded agreement with Astellas Pharma Inc. to establish a joint venture company to develop and provide a manufacturing platform for cell therapy products (b) Promoted industry-academia-government collaboration in and outside Japan on research and development that contributes to Yaskawa’s 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 indicators²) [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 system⁷] (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)]
FY2024 results	(a) Productivity indicators: +18% (compared to FY2019) (b) -23.4% (compared to FY2018) (c) • Implementation rate of risk assessment: 100% • Applied sites overseas: Building a CRM environment in India (d) Completed developing sustainable procurement policies and established guidelines for 2 overseas group companies

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 resources⁹ [FY2025: Corporate average 20% or more¹⁰] (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]
FY2024 results	(a) Ratio of female managers: The end of FY2024 2.5% (non-consolidated), 3.2% (domestic group) (b) The ratio of professional human resources: 13% (c) Lost-time injury frequency rate: 0.00 (non-consolidated), 0.19 (domestic group), 0.34 (global) (d) Improvement of indicators for the realization of health management (9 out of 10 items) and continued acquisition of certification as “Health and Productivity Management Organization 2025” (e) Non-consolidated/Domestic group: Continued implementation of human rights due diligence Overseas: Confirmation of legal and social requirements at major sites (f) Started a new program of “Robot Handmaking Event” (held 2 sessions)

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
FY2024 results	(a) Implementation of governance based on the principles of the Corporate Governance Code required of companies listed in “prime market” (b) • Strengthen information security personnel and structure • Monitoring our company brand and early detection of potential risks and implementation of countermeasures by Global SOC (Security Operation Center) utilizing security threat analysis services • Security audits for global sites and implementation of initiatives for information security legislation in overseas countries (c) • Continued appropriate responses to whistleblowing and other compliance issues • Held a meeting with compliance officers, including those overseas

*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