Sustainability Management

Sustainability Fundamental Policy

We achieve sustainability by constantly evolving.
We also believe we must protect our irreplaceable planet and remain true to the expectations of our local communities and stakeholders.
To this end, we identify materiality in our various activities and work to address issues through corporate activities, business operations and dialogue.
Through these efforts, we will fulfill our social responsibilities and enhance our corporate value by continuing to take on “new” challenges. In doing so, we will contribute to the development and evolution of a sustainable society.

Promotion Framework

Sustainability Committee Framework

Code of Conduct

1. Act with Integrity toward People and the Planet

We are creating a safe and secure future for people and the planet

1-1 Respect each other's human rights
1. ① I respect and seek to understand the human rights of every individual.
2. ② I do not engage in or support any form of forced labor.
1-2 Accept and respect each individual's diversity and differences
1-3 Do not tolerate any form of harassment
1-4 We strive to create a workplace free from injury and illness
1-5 Maintain physical and mental well-being, and work with enthusiasm
1-6 Handle personal information with care
1-7 Pass on a rich and beautiful planet to future generations
1-8 Have the courage to pursue what is "new" and support one another

2. Act with Integrity in Following the Rules

We act with fairness, integrity, and transparency

2-1 Comply with applicable laws and respect internationally recognized human rights standards
1. ① I comply with all applicable laws and regulations.
2. ② I respect the international norms and standards to which Yokowo is committed.
2-2 Do not offer or accept bribes
2-3 Do not engage in fraud, embezzlement, or any other form of misconduct
1. ① I do not appropriate company funds.
2. ② I keep accurate records.
3. ③ I do not engage in insider trading.
4. ④ I communicate information appropriately.
2-4 Do not participate in cartels or bid-rigging
2-5 Do not engage in conflicts of interest
2-6 Do not have any involvement with organized crime groups or their affiliates
2-7 Properly manage export control and trade security compliance
2-8 Respect intellectual property rights
2-9 Strictly protect confidential information
2-10 Value and protect company assets (goods, machinery, equipment, and buildings)

3. Act with Integrity toward Society

Together with stakeholders, we are sincerely striving to realize a better society

3-1 Provide safe and high-quality products and services
3-2 Conduct trustworthy testing and evaluation 3-3 Respect suppliers and build strong, trust-based relationships
3-4 Grow together with suppliers
3-5 Conduct highly transparent purchasing
3-6 Strive for business continuity
3-7 Honor and appreciate our local communities

サステナビリティ行動指針ハンドブック22 MB

Materiality

Based on our Purpose—"Through people and technology, we strive to be a good company and contribute to a better society"—we have identified materiality issues to be addressed toward FY2030 from among the challenges facing global society.

Materiality Approach

Amid rapid changes in the external environment and increasing uncertainty surrounding management, we reviewed our materiality in FY2024 as part of our sustainability initiatives, which is one of the key issues in our business structure identified in the Mid-Term Management Plan. We organized issues from both perspectives—the impact of society on our company and the impact of our company on society—and, in this review, chose to focus on non-financial issues among both financial and non-financial challenges. Through our materiality initiatives, we will work to enhance corporate value and contribute to solving social issues to achieve a sustainable society.

Step1Identification and Structuring of ESG Issues
We consolidated issues identified across each stakeholder group and created a long list of 136 items. After integrating similar items and organizing them based on their relevance to our business, we conducted a stakeholder-based assessment and identified 21 key issues.

Stakeholders considered
- ・Customers
- ・Financial institutions and institutional investors Employees
- ・ESG rating frameworks (e.g., FTSE, CDP, RBA, EcoVadis)
- ・Non-profit organizations (e.g., JICA, WEF, Free The Children Japan)
Step2Prioritize the issues

To prioritize the issues identified in Step 1, we established two rating axes: Importance to stakeholders and importance to our business, each with a three-level scale of very important, important, and not important. We conducted a survey of our executives and employees in Japan and overseas, and created a materiality map.
Step3Select possible materiality

Based on the survey results, the Executive Meeting selected possible materialities for each of the five key areas ―human capital, human rights, stakeholder engagement, global environment, and governance― and proposed KPIs and targets for FY2030.

Step4Discuss and approve materiality

The Board of Directors discussed and approved the five key areas, 13 materialities, KPIs, and FY2030 targets selected by the Executive Meeting.
The identified materialities, KPIs, and FY2030 targets will be revised as necessary to reflect changes in the external environment and business, as well as the progress of activities.

Key Aareas	Materiality
Human capital	Diversity, equity and inclusion Global workforce development
Human rights	Respect for human rights Rights of those who work with us
Stakeholder engagement	Customer satisfaction Two-way communication with business partners Dialogue and interaction with local communities Dialogue with shareholders and investors
Global environment	Climate change mitigation and adaptation Transition to a circular society as well as management and reduction of hazardous sbstances
Governance	Corporate governance Compliance Risk management

Materiality Management Promotion Framework

Key Areas	Materiality	Responsible Committee and Department
Human capital	Diversity, equity and inclusion Global workforce development	Human Resources H.Q.
Human rights	Human Rights, Labor, and Ethics Management Committee	Rights of those who work with us
Human rights	Rights of those who work with us	Health and Safety Committee
Stakeholder engagement	Customer satisfaction Two-way communication with business partners Dialogue and interaction with local communities Dialogue with shareholders and investors	Quality Assurance H.Q./Purchasing H.Q./SCI H.Q.
Global environment	Climate change mitigation and adaptation Transition to a circular society as well as management and reduction of hazardous substances	Environmental Management Committee
Governance	Corporate governance	Board of Directors
	Compliance	Compliance Committee
	Risk management	SCI H.Q. / Business Risk Management Committee / Information Security Committee

results

Materiality / FY2024 Results