Yokohama Rubber CSR Report 2021

Caring for the FutureCorporate Philosophy

Basic Philosophy
To enrich people’s lives
and contribute to theirgreater happiness and well-being
by devoting our whole hearted
energies and advanced technology
to the creation of beneficial products.

Management Policies●Take on the challenge of new technologies to produce new value.
●Develop proprietary business fields to expand the scope of business.
●Create a workplace that values, improves, and energizes people.
●Deal fairly with society and value harmony with the environment.

Action Guidelines

Corporate Slogan●Develop ourselves so that we may give our personal best.
●Trust, challenge and improve one another.
●Nurture a welcoming, open spirit.

Excellence by nature

The Founding Spirit
1. Production business is a social service. Its purpose is to make people’s lives more convenient and enjoyable.
Its aim should be to offer good, useful products at moderate prices.
2. There must be a basic commitment to delivering quality products unrivaled by those of competitors.
3. Management should adhere to the principles of fairness and consideration. The mission of a fair, honest
management is to ensure capital, share the fruits of endeavor with its workers, and fulfill its responsibilities to
consumers to act, in other words, rationally.
4. A company should have as few employees as possible and make the best use of the productivity of machines.
This is the great secret for improving efficiency.
5. The success or failure of a business depends on how much one is willing to study, and with how muchdetermination, to mutually improve and grow. Accordingly, one must make a great effort.

CONTENTS
Corporate Philosophy / Contents

01

01

The Earth11

People13

CSR Slogan /Yokohama Rubber and the SDGs /Editorial Policy / Available Online Content

02

Community

15

Message from the President

03

Corporate Governance17

Formulating the Medium-term Management
Plan YX2023 and Caring for the Future05

Progress of Major Initiatives /Yokohama Rubber Group at a Glance

19

Products

Third-party Opinion

21

07

CSR Slogan

Caringfor the Future
Make life more fulfillingfor people everywhere.

Products

The Earth

PeopleCommunity

Deliver fun andpeace of mind.

Leave a soundenvironment tofuture generations.

Build on eachother’s strengths.

Earn the confidenceof our neighbors.

Corporate GovernanceLay a solid foundation for
fulfilling social expectations.

Yokohama Rubber and the SDGs
The Yokohama Rubber Group is implementing CSR-aware ESG management thatinvolves the integrated promotion of business expansion and CSR, based on a mediumand long-term perspective that aims to realize a sustainable society.
By linking the Group’s CSR vision – “Caring for the Future” – with the U.N. Sustainable
Development Goals (SDGs), Yokohama Rubber is making clear its goal of addressing
social issues through its business activities, and the significance of this goal. All of us in
the Yokohama Rubber Group attach great importance to our family members and ourwork colleagues, and we strive to realize environmental and social harmony andfairness in our daily business activities. With this in mind, we are collaborating with all of
our stakeholders to strive to realize an enhancement of the company’s social value andcorporate value through the SDGs.
* Adopted at the United Nations Sustainable Development Summit in September 2015, the Sustainable
Development Goals (SDGs) comprise 17 sustainable development goals and 169 individual targets.

Editorial Policy
With the aim of realizing our corporate vision – “to build a trusted
identity as a contributing member of the global community” – theYokohama Rubber Group has been rolling out a series of corporate
activities that are deeply rooted in the individual regions where we
operate throughout the world, under our new YX2023 medium-term
management plan. To this end, we are working to address social issues
on the basis of the five key themes that our CSR slogan – “Caring for
the Future” – embodies.
This Report was created to share the Yokohama Rubber Group’s
policies, code of conduct and approach to CSR, orientation, specificmeasures, performance, and how they relate to the U.N. Sustainable
Development Goals (SDGs) and other international accords, in a
concise and clear manner.
Period coveredby the Report

Available Online Content
To help ensure that our stakeholders
enjoy peace of mind, we disclose
information about our high-quality
monozukuri manufacturing
operations and our environmental,social and corporate governance(ESG) measures on our CSR website(which follows the GRI standard forsustainability reporting) and in our
financial results and annual report.

January 1, 2020 to December 31, 2020
(Information includes some activities whichwere conducted in or after January 2021)

02

Message from the President

Creating Value
for All Stakeholders
Masataka Yamaishi
President and Representative Member of the Board

We will strive to generate value and solve social issues in a
way that is compatible with the times, based on the belief
that implementing a growth strategy to achieve stablecorporate management and growth will contribute to thehappiness and enrichment of people, society, and the world.

■

Making employee safety the No. 1 priority
The first incident I faced when I took over as president in 2017
was a factory accident. A fire broke out at our factory in thePhilippines, and we were determined not to let it happen
again. To that end, we have made efforts to create business
operations that prioritize safety, and we have invested insafety measures. At present, we need to review our safety
risks, reinforce our mentality, and raise our level of awareness.
To rebuild the system, which includes evaluating safetymeasures, we have designated this as a key issue in our new
medium-term management plan. We are more determinedthan ever to create a workplace where our employees canwork with peace of mind.
With regard to the COVID-19 pandemic that began in 2020,
the Yokohama Rubber Group has also been affected by theoutbreak at its plants in India, the United States, andelsewhere. In addition to taking a number of measures toprevent infection clusters from occurring in the workplace,
we declared a state of emergency within the company before
the Japanese government declared its own emergency inMarch 2020. With the safety and security of our employees as
our top priority, we have implemented measures that include

03

announcing that we would pay employees’ salaries even if
plants were closed so that they could concentrate on theirwork with peace of mind.

■ YX2023: Generating new value in anticipation

the next 100 years■Inof2017,
we celebrated the 100th anniversary of our founding.
Ever since, we have formulated and implemented a
medium-term plan every three years and fashioned a granddesign for our business operations. While we created a planfor 2020, we were extremely disappointed that the COVID-19
pandemic forced us to suspend a variety of measures.
However, in February 2021, we formulated a new
medium-term management plan, Yokohama Transformation
2023 (YX2023), and were able to indicate the new direction
we are heading in. Amidst the global upheaval occurring in
the automotive industry, we are aiming for a new phase of
growth by means of a global strategy that focuses its
response on the CASE*1 and MaaS*2 trends, as well as a
strategy that maximizes the number of high value-added
products we provide.
One of the important themes of YX2023 is generating newvalue for Yokohama Rubber over the next 100 years. We will
strive to create a system that offers value not only to ourcustomers, but also to all of our stakeholders. The “Y” in
YX2023 stands not only for YOKOHAMA, but also for “YOU.”We will transform ourselves by raising awareness among our
employees themselves.

■ ESG management that helps us care for the future

To make our goal of “Caring for the Future” a reality, we will
engage in management that emphasizes both ESG
management*3 and SDGs*4.
● In terms of cooperating with industry organizations, we aretaking part in the Tire Industry Project (TIP) being led by theWorld Business Council for Sustainable Development(WBCSD) along with 11 tire manufacturers. In doing so, we areestablishing a roadmap for the SDGs and working together toaddress issues such as the environment, human rights, andsustainable procurement.
● In terms of products, we provide our customers withlightweight, fuel-efficient, durable, and safe products that
help contribute to environmental conservation. We are also
looking into new business opportunities, one of which is the
SensorTire Technology Vision, a medium- to long-term vision
for technological development of passenger vehicle tires.
This will contribute to automobile safety and security byproviding information from Sensor Tires equipped withsensing functions to drivers and a number of externalbusinesses.
● In terms of the environment, we have been working to
expand the utilization of renewable energy sources toachieve carbon neutrality. To fulfill our responsibility tosupply decarbonized products that satisfy customer
demands, we will formulate a vision of the company we want
to be in 2030 and a roadmap to 2050 by the end of this fiscal
year. With regard to achieving a circular economy, we haveset a goal for using 30% or more renewable/recycledmaterials by 2030. In addition, we recognize the importanceof the TCFD*5 and will consider disclosing information inaccordance with its recommendations. I personally believethat it is important to clarify what our objectives are so that
we can firmly integrate our goals into our business
operations as opposed to simply setting goals.
● When it comes to other regions and human resources, itwill be extremely vital for us to localize our operations as we
accelerate our global expansion going forward so that we canhire the most appropriate personnel in each country andregion. We will need to appoint local executives who have asolid understanding of the region in which they are based, as
well as create a system that allows them to collaborate closelywith the regional headquarters to make locally-led
management a reality. We are hoping to achieve not only
gender diversity, but global diversity as well. Anotherimportant point is evolution. If we simply go about our daily
routine, innovation will not be possible. Promoting evolution
will require us to recruit external human resources and bringin fresh knowledge and know-how, and then integrate thiswith what we have accumulated internally. I believe that thisis only possible by encouraging diversity.
● In terms of governance, companies are public institutions
that exist within society, and ensuring that management istransparent is of the utmost importance. We are making
steady efforts to enhance our system of governance, andthere are currently five outside directors on the Board of
Directors and three outside corporate auditors on the Boardof Corporate Auditors, with outside directors accounting forthe majority of the members. When selecting our outside
directors, we emphasize diversity in terms of skills, gender,and global background. With regard to global governance,

we have established a governance structure that includes acontrolling company to ensure cooperation between theheadquarters and subsidiaries, with the goal of harnessing
the full potential each region’s personnel. While we are taking
affirmative steps to comply with revisions in the Corporate
Governance Code, what essential is that we act based on
sound logic. Growth requires that we continue to think andact in pursuit of generating value within the ESG framework,
particularly as we work to promote governance and diversity.

■ To our stakeholders

In promoting YX2023, we are working to create value that is
appropriate for the times. Doing this requires not only that
we firmly establish a profitable model in the tire business, butthat we work to achieve ESG and the SDGs. I believe that
two-pronged management that emphasizes offense anddefense, rather than one or the other, is precisely what willlead us to success and what embodies the exploitation andexploration we are aiming for in YX2023. I am convinced that
our mission is to help solve regional and social issues throughESG management by steadily implementing our current
plans, all while keeping an eye on the future direction of ourbusiness. I am sure that all of us will make ESG management a
reality by incorporating this mindset into our work andturning it into a steadily growing body of organizational
knowledge. Next year, we would like to announce a clearer
direction for our ESG management. I hope that all of our
stakeholders will continue to show understanding toward ouractivities and trust in our future growth.

*1 CASE: An acronym that means “Connected, Autonomous, Shared &Services, and Electric.”*2 MaaS: An abbreviation for Mobility as a Service. It is a new concept in which
several types of transportation services are integrated and provided to users.
*3 ESG: An acronym that means Environment, Social, and Governance, anevaluation of the long-term growth of a company.
*4 SDGs: An abbreviation for Sustainable Development Goals, which are goals
set by the United Nations to be achieved by 2030.
*5 TCFD: Task Force on Climate-related Financial Disclosures, which
recommends the disclosure of information related to climate-related risks,
opportunities, and financial impacts.

04Formulating the Medium-term Management Plan YX2023
and Caring for the Future
Yokohama Rubber is committed to enriching both the earth and society through its medium-term management plan, Yokohama Transformation 2023 (YX2023).

SocialChange andChallenges

Business Environment●Decrease in the number ofprivately owned vehicles andincrease in the number of
infrastructure-related vehicles
due to the expansion of CASE
and MaaS

Medium-termManagement
Plan YX2023●Distribution using electricvehicles and automation●Intensifying price competition
for tires

Exploitation
andExploration

Society●Improvement of occupational
health and safety andprevention of infectious diseases●Changing values with regard
to work styles

Products

Implement a growthstrategy for the next
generation based on two
approaches: “Exploitation”
of existing businesses and“Exploration” in responseto changes in the market.

●Prevention of complicity inchild and forced labor in thecompany and suppliers●Social impacts on suppliers

The Environment●Climate change problems●Changes in/impact on thenatural environment by our
production bases and suppliers

The Earth●Dependence on natural
resources●Switch from fossil resources tosustainable resources

PeopleCorporate Governance●Maintenance and strengtheningof foundation for properorganizational governance●Demanding effectiveness anddiversity within the board of
directors and organization

05

Community

Corporate
GovernanceExploitation

Consumer Tires

Raise high value-added
tire sales ratio●Raise high value-added tire sales ratio●Strengthen core products and brands by leveraging originaltechnologies and superior quality

ADVAN
GEOLANDAR
WINTER

Exploration
Respond to market changes
Costs
Services

Product
lineup

DX: Digital
Transformation

Focusing resourcesin areas of strength
Strengthen / expand by allocating
resources to core product areas
Hose &
couplings

Growth drivers

Industrial
products

Stable earnings

Business restructuring
Hamatite
Focus oncore areas

Aerospace
products
Structuralreforms

Financial Targets for FY2023
Sales revenue: 700 billion yen
Business profits: 70 billion yen
Business profit margin: 10%
D/E ratio: 0.4x
ROE: 10%
ROIC: 7%
Operating CF: 250 billion yen●Promoting product and regional business strategies

Commercial Tires●Strengthening cost competitiveness and our system of services●Promoting Digital Transformation (DX)・Formulating Yokohama Sensor Tire Technology, etc.
●Developing a full line of products to reform distribution●Integrating off-highway tire business and multi-brand strategy●Strengthening the foundation for growth in our truck and bus
tire business(3-year cumulative total)

P. 07

Capital investments:
Not exceeding depreciation
and amortization(excludes strategic investments)

Social value createdMultiple Business●Shift Portfolio to Products with Highly Stable Earnings andStrong Growth Potential

Delivering fun and peaceof mind through driving.

・Hydraulic hoses: Strengthen market presence
・Car pipes: New growth-driving technologies (response to CASE)
・Strengthen efforts toward hydrogen society (hydrogen filling hose)
・Belts: Establish dominant presence in core-strength markets
・Marine products: Maintain high market share & strengthen
production bases

Make life more fulfillingfor people everywhere.

●Continue to supply 100% of environmentally friendly products●Carbon neutrality initiatives●Circular economy initiatives
・Renewable/recycled raw materials: 30% or more by 2030

P. 11

●Sustainable natural rubber procurement●Carbon-positive initiatives: 1.3 million trees to be planted by 2030 through Yokohama
Forever Forest●Human resource measures to enhance both management and managers●Create an environment where everyone can maximize their abilities.
●Promote diversity●Creating a safe and secure workplace●Promote procurement in accordance with the CSR Procurement Guidelines●Contribution to the local community through COVID-19 measures●Support for disaster area
●Helping to resolve difficult issues through the YOKOHAMA Magokoro Fund

P. 13

P. 15

Click here for an explanationof our value chain initiatives●Global governance・Strengthen global management
・Expand our whistleblower system to overseas sites

P. 17

06

Products

Product-related Initiatives●Customer health and safety●Marketing and labeling●Customer privacy

Value created▶ Providing even greater safety and convenienceby creating services for tires▶ Stable driving on snowy and wet roads▶ Reduced fuel consumption with ultra widebase tires▶ Contributing to hydrogen vehicles

Visit our website for more information

More Comfortable Tires with Tire Sensor Technology
Establishing the SensorTire Technology Vision
The DX*1 movement in the automotive industry is said to be aonce-in-a-century period of transformation, and the so-called
CASE*2 and MaaS*3 trends are expected to penetrate themarket and significantly change consumer behavior.
The mobility-based society of the future aims to allow users
to lead rich, sustainable lives while using mobility in a safe andsecure manner. Advantages of such a society include eliminating
traffic congestion in urban areas, reducing CO2 emissions,

reducing air pollution, increasing green spaces by reducing thenumber of parking lots, and contributing to last mile mobility tohelp those with limited mobility and access to transportation.
*1 DX: Digital Transformation (penetration of advanced IT technologies)*2 CASE: Acronym for Connected, Autonomous, Shared & Services, and Electric.
*3 MaaS: Abbreviation for Mobility as a Service. An abbreviation for Mobility
as a Service, a new concept in which various types of transportation
services are combined into a single service and provided to users.

Services to be achieved through SensorTire Technology
Main Effects:
Reduced traffic congestionin urban areas
Improved traffic safety
Improved convenienceof transportation
Information collection using tire sensors▶ Air pressure, temperature, wear, driving history, road surface data

Information services
and MaaS providers▶ Suggested routes for safe operation▶ Tire maintenance and management▶ Road maintenance management support

Automobile insurancecompanies

Information
provided to car
navigation systems, etc.

Deployment ofalternate vehicles

Dealers

Rescue services▶ Handling flats,
providing road services

07

Corporate vehicle
management services

Dispatch ofservice vehicles

Coordination ofprovided services▶ Car life support(air pressure, rotation, replacement timing, etc.)

Products

surface conditions as well as air pressure. This information will
be used to improve our mobility services. We will also expand
the implementation of service vehicles that perform
replacements, inspections, and tire management at corporateclients such as car dealers and car-sharing operators. As a tire
manufacturer, we will strive to deliver safe and secure
information services in addition to the comfort offered byconventional tires, such as low noise and riding comfort.

To support this mobility-based society, Yokohama Rubber willencourage the enhancement of information services throughthe digitization of tires in response to vehicles becoming
increasingly electric and automated. We will develop IoT tires
under our “SensorTire Technology Vision,” a medium- tolong-term technology development vision for passenger car
tires announced by Yokohama Rubber in February 2021. These
are advanced sensor tires that can detect tire wear and road

Conceptual diagram for YOKOHAMA SensorTire Technology Vision
Main Effects:
Reduced traffic congestionin urban areas

Functio

nal u p gradingInformation collection using tire sensors

Air pressure sensing

Air pressure
management▶ Suggested routes for safe operation

Deployment ofalternate vehicles

provided to car
navigation systems, etc.

Dealers

Rescue services

アタリ

Corporate vehicle
management services▶ Tire maintenance and management▶ Road maintenance management support Information

Automobile insurancecompanies

Supplementation with additional sensing functionality
TPMS attached totire’s inner surface▶ Air pressure, temperature, wear, driving history, road surface data

Information services
and MaaS providers

Road-surface sensing
Tread-wear sensing

Improved convenienceof transportation

Improved traffic safety▶ Handling flats,
providing road services

Dispatch ofservice vehicles

Coordination ofprovided services▶ Car life support(air pressure, rotation, replacement timing, etc.)

Infection with other information systems

Wear detection function

Road surface detection function

Abnormality detection function

Wear and driving history
management for fleets

Suggested routes for safe operation
Road maintenancemanagement support

Automatic towing arrangements
Notifying surrounding vehicles
about hazards

Improved services provided by enhanced sensing functions and real-time capabilities

Examples of sensors under development

Looking Toward a New Mobility-based Society
Yokohama Rubber is conducting R&D with Alps Alpine Co., Ltd.,a company skilled in sensor development, to process andmanage the data acquired from tires and road surfaces using
digital tools. Going forward, we will develop systems andapplications that feed the data acquired from tires back to users
or automated vehicles. Based on the concept of turning the realworld into a library, we are looking into creating a new businessby working with ZENRIN CO., LTD., which has a large supply of
information on maps, road regulations, road slopes, and more,
to link a wide variety of dynamic information.
Alps Alpine, ZENRIN, and our company will utilize

experimental vehicles equipped with IoT tires to acquire avariety of road surface information from public roads and link itwith high-precision maps and road regulation information.
Our goal is to provide future solutions by analyzing the datafrom this demonstration experiment. For example, we will
investigate and propose solutions that include navigation thatavoids steep slopes and curves by detecting wear and lack of airpressure, safe driving support through the provision of
information on frozen road surfaces and road cave-ins, andautomatic vehicle control.

08Ultra-wide Base Studless Tires for Trucks to Support Next-generation Transportation
We will continue to improve logistics efficiency with ourultra-flat tires using our proprietary SpiraLoop® technology,
while also developing technologies and expanding our
product lineup to meet the need for fully automatedtransportation. This will secure our place in the market in theface of future transformations in distribution.
Recognized as a winner of the Good Design Best 100 Award
in fiscal 2020

Ultra-flat tires

Normally, the rear wheels of trucks are dual wheels due to theheavy loads they bear. Yokohama Rubber’s 903W tire fortrucks and buses is an ultra-flat tire that offers both excellent
studless performance and long wear life. Combining dual tires
into a single tire reduces the weight (by approximately
19-28%) and saves space. This makes it possible to increase theloading and unloading capacity of the cargo bed while
simultaneously making maintenance work such as tirereassembly and daily inspections easier. This was madepossible through the use of SpiraLoop®, a proprietary
technology that utilizes seamless belts to reinforce thestructure of wide tires and maintain their shape. The productwas praised highly for its commercialization and received the“Good Design Best 100” award in 2020.
In terms of truck distribution, where demand is expected toincrease in the future, we will lend our support by addressing
the shortage of drivers and providing labor-saving
maintenance.
Our strength lies in our ability to provide a one-stop shop
for a wide variety of tires for long-distance truck transport,
short-distance transport, and last mile delivery that puts cargo
into people’s hands.

Effects●Weight reduction of approx. 100 kg per axle
(for a set of tires and wheels)●Improved flexibility in vehicle design due to space
saved in the tire unit
●Environmental impact reductions due to waste tires●Environmental impact reductions due to fewer
discarded tires

Predicting current and future vehicle changes according to the stage of distribution
Now
City to City

Within City

Last one mile

Driverless delivery

FutureLow speed autonomous vehicle

09

Up to 100km/h

Up to 100km/h

Up to 40km/h

Up to 20km/h

TBR

LTR

PCR/VAN

SOLID

Products

Strengthening the R&D System(Improving Winter Tire Performance on Ice and Snow)
We are constantly engaged in research and development toensure that our customers can enjoy safe and secure driving
in various weather conditions and on rough roads.
We are also actively working to improve the ice and snow
performance of winter tires, including studless tires, andhave winter tire test centers in Hokkaido and Sweden. The
Hokkaido Tire Test Center features one of the largest indoor
ice testing facilities in Japan at approximately 100 meters
long, and we are enhancing its system of development byinstalling new refrigerant equipment that enables
development in various temperature ranges*.

Tire Test Center of Hokkaido (TTCH)* At a reference room temperature of 5 degrees Celsius, it has the ability toadjust the ice surface temperature between -10 and 0 degrees Celsius.

Massive New Cooling Unit at the indoor ice testing facility

Hydrogen Refueling Hose

■ Hoses for hydrogen refuelingthat support a decarbonized society■Currently,
a number of efforts to reduce CO emissions are2

actively underway. That being said, Japan is highly dependent
on fossil fuels as part of its power supply mix, and it largely
relies on overseas sources for its energy needs. There are also
concerns about price instability due to the growing demandfor energy from emerging countries.
In the Basic Energy Plan, there is an accelerating movement
toward achieving a society based on hydrogen energy, which
can be produced from a variety of primary energy sources,
can be stored and transported in solid, liquid, and gaseous
forms, and is expected to have high energy efficiency and a
low environmental impact.
In this context, promoting the use of fuel cell vehicles (FCV)
necessitates a hydrogen gas filling hose that can be usedsafely at hydrogen stations. Yokohama Rubber wascommissioned by the New Energy and Industrial Technology
Development Organization (NEDO) to pursue joint
development and commercialization of this technology with
Iwatani Industrial Gases Corp.
In our “ibar” series of hoses for high-pressure hydrogen gas,
we sell ibar HG35 for hydrogen filling pressures of 35 Mpa.
Compared to metal hoses, this hose is lighter and more
flexible, making it easier to transport and fill, and it also
provides a high degree of safety and durability.
In the future, as the cruising range of FCVs increases(assumed to be 700km), we plan to commercialize highpressure hydrogen hoses that match the international
standards for the hydrogen stations in Japan and the othercountries, and we are currently actively developing hoses that
can handle 87.5MPa.
The hydrogen hose we are developing is intended to belightweight, flexible, and durable, and we are evaluating it
through domestic and international testing organizations. For
example, we are investigating and evaluating a variety of
durability tests and hydrogen gas filling cycle tests thatsimulate actual conditions.
Japan’s strategic roadmap for hydrogen and fuel cells aims
to promote and expand the use of next-generation vehicles.
This includes household fuel cells and FCVs and calls for thewidespread use of 5.3 million household fuel cells and about
800,000 FCVs by 2030. The target for number of hydrogenstations installed is about 320 stations by 2025. We willcontinue to contribute to the development of theinfrastructure necessary for a hydrogen-based society.

Licensed by TOKYO TOWER

Hydrogen station

10

The EarthEnvironment-related Initiatives●Energy●Water and Wastewater●Biodiversity

Value created●Effluent and waste●Emissions▶ Achieving a decarbonized society▶ Achieving a recycling-oriented society▶ Securing stable and sustainable raw materials

Visit our website for more information

Working Toward Carbon Neutrality
Global warming is giving rise to natural disasters, including
abnormal weather conditions such as heavy rain and typhoons
and extreme changes in the climate such as heavy snowfall andlong stretches of hot days. This is also having a major impact on
ecosystems and our daily lives. If economic activity continues toexpand at the rate it has been expanding at since the Industrial
Revolution, the average temperature is expected to rise by up to
4.8 degrees Celsius by 2100. This brings with it a significant riskof ecosystems being destroyed due to rising sea temperatures
and the disappearance of land due to rising sea levels, as well as
widespread wind and flood damage. To prevent this, theinternational community has set a common goal of achievingcarbon neutrality (zero effective CO2 emissions based on theamount of CO2 emitted and absorbed) by 2050.
Yokohama Rubber will continue advancing the following
initiatives to achieve carbon neutrality while also pursuing its
economic activities. We will also address customer demands fora decarbonized society in a timely manner, as well as promoteresearch and development and the provision of products andservices as a company that plays a part in this effort.
●Environment-related social contribution activities(in cooperation with local communities)●Environmental risk prevention and countermeasures●Energy-saving activities(including the use of renewable energy)●Resource recycling activities (reduce, reuse, and recycle)●Promoting efficiency as part of new lifestyles

11

Changes in CO2 Emissions (Scope 1+2)
(Thousandsof tons)

1,200*The increase in fiscal 2019 is due to the expansion of the calculation range.

1,053

1,000
800

716

722

2017

2018

986

600
400
200
0

2019

■ Development of wave-receiving plates for

■

2020

(FY)

wave power generation
Wave power generation is a marine-based renewable energy
system that uses the power of waves to generate electricity. It
has been attracting increased attention in recent years because
it has almost no impact on nature or ecosystems and is expected
to generate power more efficiently than solar and wind power.
Our company was in charge of the rubber plate portion of thewave-receiving plate attached to the lower part of the power
generation equipment in the demonstration experimentconducted by the Hiratsuka
Marine Energy Study Group, ajoint research project between
the public, private, and academic
sectors. The rubber plate is able
to swing back and forth in largearcs by creating an appropriate“deflection” according to the sizeof the waves, thus achieving high Power-generating equipment
being installed
energy efficiency.

The Earth

Working Toward a Circular Economy
Achieving a sustainable society requires establishing a circular
economy as well as carbon neutrality. Instead of theconventional economic system in which we extract resources,
use them to make things, and then throw them away, our goal
is to utilize discarded products and raw materials as new
resources and eliminate waste. To achieve this goal, we will
promote the sustainable use of materials derived from natural
resources, the development of new types of biomasses andother raw materials, and the expansion of the use ofrenewable and recycled raw materials in cooperation with
suppliers. Our goal is to achieve a usage rate of 30% or moreof those raw materials by 2030.

■ Developing the world’s first new technology

butadiene from biomass■Ourto produce
company developed the world’s first new technology
capable of efficiently producing butadiene from biomass(biological resources) through joint research by the
Bio-monomer Production Laboratory with the Institute ofPhysical and Chemical Research (RIKEN) and Zeon
Corporation. We were able to do so by discovering ametabolic pathway that can produce butadiene via lessexpensive intermediates, then creating and incorporating into
cells a new enzyme to achievethis. Butadiene is used as theprimary raw material for thesynthetic rubber in automobile
tires. Butadiene is currently
produced industrially as a
byproduct of naphtha pyrolysis, Butadiene rubber created frombutadiene through new fermentation
but the creation of thisproduction technology

technology allows us to reduce our dependence on
petroleum and reduce carbon dioxide emissions.

■ Sustainable procurement initiatives for natural rubber

Tires, hoses, and industrial products, which are our main
products, require resilience, and natural rubber is widely used
for this purpose.
However, most natural rubber is produced from the sap of asingle species of rubber tree (Hevea brasiliensis), which isgrown on rubber farms. This comes with risks, such as reduced
production due to disease, illegal labor and child labor, anddestruction of ecosystems caused by deforestation. To ensurestable procurement for the future, we are working with local
government and suppliers to conduct surveys and lend our
support to natural rubber farms. In fiscal 2020, we visited andinterviewed 128 farms (179 in total) in the Surat Thani districtof Thailand. We also collaborated with the Rubber Authority ofThailand (RAOT) to provide agroforestry seedlings for planting
in natural rubber farms.
We also participated in industry activities through the TIP*2
being led by the WBCSD*1, which we identified as animportant initiative in our SDGs roadmap, as well as worked toprotect tropical rainforests and the working environments
and livelihoods of rubber farmers in accordance with thepolicies set by the GPSNR*3, a group consisting of natural
rubber producers, related organizations, tire manufacturers,
automobile manufacturers, and so on.
*1 WBCSD: World Business Council for Sustainable Development.
*2 TIP: Tire Industry Project (subcommittee).
*3 GPSNR: Global Platform for Sustainable Natural Rubber.

Carbon-positive Initiatives: Yokohama Forever Forest Activities
Under the Yokohama Forever Forest Activities initiative, wehave been planting trees at 14 sites in Japan and 21 sites in 8
countries overseas since 2007. By fiscal 2020, a cumulative total

Contributing
to our SDGs

of 1.04 million saplings were provided to local communities
and trees planted. To date, the amount of CO2 absorbed byplanted trees has increased to an estimated 1,300 tons.

Here’s what one person involved in wave power generation said

Wave power generation systems that utilize wave energy have a low impact on the environment, andthe pendulum-type wave power generation system installed on the coast of the Hiratsuka Wave Power
Station can be installed on many coasts throughout Japan. Because it can coexist with fisheries,
regional revitalization efforts, and industrialization, it is the closest thing we have to a practical solution.
To integrate this wave power generation system into society, it is important to harmonize and combine
a number of fields, including environmental studies, regional sociology, ocean engineering, coastal
engineering, mechanical engineering, electrical engineering, and ocean observations.

Dr. Rheem Changkyu
Professor, Institute of Industrial Science, The University of Tokyo

12

PeopleInitiatives related to people●Child labor●Forced or compulsory labor

Value created▶ A comfortable workplace culture that

●Occupational health and safety●Training and education●Diversity and equal opportunity

encourages the acceptance of diverse values▶ Improved productivity through the creation of

innovation▶ Cultivating a culture of safety to promote
physical and mental health and eliminate risks

Visit our website for more information

Promoting Diversity - Creating an Environment Where All Can Demonstrate Their Abilities
Yokohama Rubber aims to create an employee-friendly
environment where employees can fully demonstrate theirabilities, regardless of gender, nationality, age, or other factors.
To this end, the Diversity Promotion Taskforce will play apivotal role in fostering a corporate culture in which each andevery employee, including those of diverse backgrounds, canacknowledge and respect one another and play an active role inthe company, thereby increasing productivity and generating
new value that transcends conventional boundaries.
As part of this, we are promoting the theme of equality,
including gender equality, beginning with support for women’s
participation and advancement, childcare, and senior caregivers,and expanding to include people with disabilities and membersof the LGBTQ* community.
* LGBTQ: A general term used to describe sexual minorities, including
homosexuals, bisexuals, and those whose gender identity is not clearly defined.

Examples of various systems for a supportive work
environment●Expansion of work from home
●Reduced working hours to allow for childcare●Expand scope of usage for staggered working hours●Annual leave in hourly units●Abolition of the core time period in the company’s
flextime system●Formulation of measures to support employees
returning to work after taking maternity &childcare/senior care leave●Expand scope of usage for senior care and nursing
systems13■ Initiatives to promote diversity

To promote diversity, we are implementing various measures tocreate an employee-friendly working environment.
In fiscal 2020, we held a number of online awareness-raisingseminars based on the theme of “diversity of work styles.”Fiscal 2020 events●Nikkei BP Lecture (Employing people with disabilities)●LGBTQ seminars (49 participants)●Providing health education materials on COVID-19
harassment●Gathering seminar for working mothers and fathers●Implementing the Cabinet Office’s babysitter discountcoupon system●Course for those returning from childcare leave●Mini MBA seminar for women(Three of six seminars held: 115 participants)●Career development support seminar (56 participants)●Health seminars(Mental health support, anti-harassment support, sleep,
breast cancer, uterine cancer, etc.)●Joint survey by labor and management on work fromhome conditions
For all employees (1,610 employees)●Interviews with managers (114 managers)

People■ New work styles and issues

personal level, as well as utilizing a variety of management
styles.
For this reason, we will make efforts to promote thereinforcement of true diversity management that respects andacknowledges each individual.

The use of the work from home system has accelerated during
the COVID-19 pandemic, and while we are sorting out theadvantages and disadvantages, one advantage is that a numberof seminars and other events can now be held online, providing
more opportunities for colleagues around the world in the
Yokohama Rubber Group to learn and grow whenever it isconvenient for them.
That being said, we have encountered some issues related tothis new work style, such as stress caused by the telecommuting
environment and a lack of communication. This includes ways ofcommunicating with members who cannot meet directly andmanagement methods. Now more than ever, it is imperativethat we value the individual and deal with each person on a

■ Promoting mental and physical health

We made efforts to address mental health through stresschecks, improving the environment through heat control
measures, improving health checkups, and addressing the risk of
COVID-19.
We have been advancing the promotion of health incooperation with health insurance unions, and we will continue
to do so going forward.

Diversity and Inclusion (Respect for Diversity)

Age
Lifestyle

GenderEnhancing diversity
management

Values

LGBTQ
Roles

Those withdisabilities

Nationality
CultureFostering a Culture of Safety: Creating a Safe and Employee-friendly Workplace
Although occurrences of occupational injuries resulting in lostwork time are rare, it is important to work continuously toeliminate risks by observing decisions and identifying hazardous
areas and dangerous operations. It is especially important to beprepared for troubleshooting. Workers must recognize
abnormalities and follow the “stop, call, and wait” procedure, as
well as shift to equipment that prevents access to sources ofContributing
to our SDGs

danger and stops when danger is approached. In fiscal 2020,
through safety diagnoses and follow-ups, we strove to preventthe recurrence of accidents and identify and eliminate theirpotential causes, as well as eliminate hazards in advancethrough risk assessment and provide training related to safety
and health. We will continue our efforts to foster a workplaceenvironment free from accidents and risks.

Becoming a Company Where Diverse Human Resources Can Shine

In fiscal 2020, we provided training for the development of women employees as well as diversity
training. This training was a great success thanks to the talented employees, their devotion to thecompany, and the assistance of the secretariat, the members of which believed in the employees’
potential and channeled their passion into making this training possible. In this era of VUCA*, the ability
to respond to change in a flexible manner is more vital than ever, and I believe that this ability can becultivated through training. I hope you will continue to take on new challenges and evolve yourmindset. I look forward to seeing future careers and continuous development of Yokohama Rubber.
* VUCA: An acronym for Volatility, Uncertainty, Complexity, and Ambiguity.

Ms. Yuko Kobayakawa
President and CEO, Work Shift Institute14Community

Initiatives related to local communities●Local communities●Market presence

Value createdInitiatives related to customers●Supplier environmental assessment▶ Supporting independence from poverty

and hardship●Supplier social assessment▶ Creating communities where people canlive safely▶ Revitalizing partnerships with communities▶ Contributing to solutions to social issues

Visit our website for more information

Medical Support that Addresses the Spread of COVID-19■ Support for medical funds in Tokyo and seven prefectures
In September 2020, we made individual donations of 200,000
yen (1.6 million yen total) to medical professionals in Tokyo,
Ibaraki, Kanagawa, Shizuoka, Nagano, Aichi, Mie, and Hiroshima
prefectures, where our headquarters and plants are located.

■ Supplying masks and disinfectant to■Asahikawa City, Hokkaido
In December 2020, we donated 1,000 medical masks and 100
bottles of alcohol disinfectant to Asahikawa City in Hokkaido,
where our tire test course is located and where COVID-19 was
spreading rapidly.

■ Donating 100 tires to Kanagawa Prefecture■

for use in vehicles transporting COVID-19 patients
Yokohama Rubber’s Hiratsuka Plant donated 100 passenger car
tires to Kanagawa Prefecture in March 2021. The tires were
installed on vehicles used to transport patients with COVID-19 at
21 public health centers in Kanagawa Prefecture. (TheYOKOHAMA Magokoro (Sincere Heart) Fund also contributed
100,000 yen to cover tire replacement costs.)

Support for Organizations Through the YOKOHAMA Magokoro (Sincere Heart) Fund, and Messages
from These Organizations■ Hyogo Social Welfare Corporation, The Hyogo Institute of■Assistive Technology

Mr. Takaaki Chin, Director

The support we received in fiscal 2020 will be applied toward
the manufacture and repair, etc., of myoelectric hands* used for
operation training. To ensure as many children as possible haveaccess to myoelectric hands, we will expand the PediatricMyoelectric Hand Bank support network, develop andcommercialize myoelectric hands specialized for operation

15

training, and work to further
encourage the spread of
myoelectric hands.
* Myoelectric hand: An electric
prosthetic hand that allows the user
to move the fingers at will by using
the small amount of muscle potential
generated when muscles contract.

Myoelectric handCommunity■ Certified NPO corporation ChildFund Japan

Mr. Tetsuo Ohara,
Fundraising and Public Relations Team Leader
Communications and Marketing Department
Through the Sponsorship Program, our support for fiscal 2020 isbeing used to help four children in the Philippines gain access to
education, health, nutrition, and other resources, thus enabling
activities that will allow them to grow alongside theircommunities. In areas we support where lives and livelihoods
are at risk due to the COVID-19
pandemic, we are currently
working to help the children
continue their studies while
preventing infection.

■ Japan marrow donor program

Mr. Shinji Tanaka, Public Relations Team,
Public Relations and External Affairs Department
This support was applied withcare to cover the costs of liaisingwith donors and patients,organizing donor drives, andcreating educational materials
to recruit donors.
Donor drive

A letter from an employee to a childreceiving support

Yokohama Rubber Employees’ Social Contribution Fund, The
YOKOHAMA Magokoro (Sincere Heart) Fund

Yokohama Rubber’s Support for Disaster Relief Efforts■ Taking part in the Japanese Red Cross Society’s■ “ACTION! Disaster Prevention and Mitigation” efforts“ACTION! Disaster Prevention and Mitigation” is an initiative
conducted by the Japanese Red Cross Society to think about
those who are still suffering in disaster-stricken areas and to
bolster all of society’s ability to cope with potential futuredisasters by utilizing the lessons and experiences gained fromprevious disasters. This is the third time that Yokohama Rubber
participated in this project, which is held every March, themonth in which the Great East Japan Earthquake occurred, incooperation with companies, organizations, and volunteers
nationwide.
Yokohama Rubber has been enhancing its disasterprevention and mitigation system by promoting fire anddisaster prevention activities and developing a business
continuity plan (BCP). By participating in this project, we aretrying to keep the memory of the Great East Japan Earthquake
alive and to raise awareness about daily disaster prevention
activities and disaster preparedness.

through the Japanese Red Cross Society, for a total of three
million yen.

■ Y.T. Rubber Co., Ltd. lends support to areas affected by■torrential rains and floods in Thailand
In December 2020, Y.T. Rubber Co., Ltd., a natural rubber
processing company under Yokohama Rubber, donated relief
supplies to households affected by the floods caused by heavy
rains in Surat Thani, Thailand, where the company is located. The
company distributed 5 kg of rice and 12 bottles of 500 mL
bottled water to all 360 households affected in two villages
adjacent to the company. We believe that our employees’
prompt delivery of needed supplies to the affected households
that found themselves in a dire situation helped us to further
enhance our trust-based relationship with the local residents.

■

Donations to address natural disasters
To assist the areas affected by the torrential rains in July 2020,
Yokohama Rubber donated two million yen and the YOKOHAMA
Magokoro (Sincere Heart) Fund donated one million yen

Contributing
to our SDGs

Yokohama Rubber Group staff delivering relief supplies and people in the Surat
Thani area affected by the flood

Messages from an Organization that We Have Supported

The COVID-19 pandemic has had a severe impact on children in the Philippines. Regional medical
systems are inadequate, and face-to-face classes have not resumed in schools. We provided support
to parents so that they can give their children lessons at home, and we provided desks and chairs tofamilies who had difficulty providing a learning environment. With the support of our employees, weare continuing to support uninterrupted education even amidst the COVID-19 pandemic.

Mr. Tetsuo Ohara
Fundraising and Public Relations Team Leader, Communications and Marketing Department
Certified NPO corporation ChildFund Japan16

Corporate GovernanceInitiatives related to corporate governance●Governance system●CSR and environmental management●Risk management

Value created●Compliance●Economic performance▶ Improving corporate value through soundmanagement structure●Taxation transparency▶ Strengthening global governance

Visit our website for more information

Management Practices that Earn Firm TrustWe in the Yokohama Group work in the spirit of our Corporate
Philosophy to achieve continuing growth in corporate value andto thereby earn the unwavering confidence of all our
stakeholders. Our efforts have included building a corporate
governance framework for ensuring sound management that isfair and transparent, and we have worked continuously toreinforce that framework.
Basic Corporate Governance Policy●Ensuring shareholders’ rights and equality●Appropriate collaboration with stakeholders other thanshareholders●Ensuring appropriate information disclosure andtransparency●Responsibilities of the Board of Directors●Dialogue with shareholders

In addition, the Director Personnel/Remuneration Committee
for Corporate Officers and Directors of the Board of Directors,
which consists of one internal director and two external
directors, decides matters related to personnel/remuneration.
Audit & Supervisory Board Members attend meetings of theBoard of Directors as well as management meetings and otherimportant meetings and committees to get a sense of how
business operations are being conducted, obtain information asneeded, and audit directors’ performance of their duties.
The Yokohama Framework of Corporate Governance
General Meeting of Shareholders
Selection, dismissal,
oversight

Selection, dismissal,
oversight

Financialauditing

Auditing

Proposals

Independent
PublicAccountants

System and Strengthening Management■TheOfficer
Company’s Board of Directors consists of 11 members

Audit &
Supervisory
Board

Auditing

Management,
oversight

Director
Personnel/
Remuneration
Committee

3 members(including 2 external)

Representative Memberof the Board
CSR Council

Management Meeting
Executive Committee

Corporate Compliance
Committee
Central Disaster
Prevention Council

Financialauditing

Environment Council

Corporate Administration
Division

Risk Management
Committee, other

Audit Department
Internal auditing

17

Board ofDirectors

11 members(including 5 external)

5 members(including 3 external)

Financialauditing■ Reforming the Board of Directors and(6 internal directors (including foreign directors) and 5 external
directors (all independent directors)). Traditionally, annual
bonuses for directors and corporate officers, excluding outside
directors, have been based on company-wide results andindividual performance. We subsequently instituted acompensation system that uses transfer-restricted stock.
Furthermore, starting fiscal 2021, we introduced a medium-term
performance-linked compensation system to give employees
more motivation to achieve the quantitative targets presented
in the medium-term management plan.

Selection, dismissal,
oversight

Officers and the divisions
under their management

Corporate Philosophy and Code of Conduct

Corporate GovernanceFiscal 2020 Committee Meetings●Risk Management Committee: 11 times●Personal Information Protection Committee: 2 times●Export Control Committee: 2 times●Information Security Committee: 2 times, etc.
The activities of the above four committees, including the Risk
Management Committee, are periodically reported to the Boardof Directors. Other committees’ activities are reported atmanagement meetings as appropriate, and matters arereported to the Board of Directors if doing so is deemednecessary.
With regard to our cross-shareholdings policy, we strive toincrease shareholder value through share buybacks when sharesare unbundled. In terms of Group governance, we will
strengthen management on a global scale by strengthening thesubsidiary and expanding the internal reporting system tooverseas bases.

■ Compliance System■ Overseas Development of Whistleblowing System

For overseas subsidiaries, we have established a global
whistleblowing system in which the Corporate ComplianceDept. directly identifies instances of bribery or violations ofcompetition laws through a point of contact outside of thecompany. We introduced the system for the first time at our
China headquarters and distributors in 2018. The system will be
introduced at our production site in the Philippines in August2020 and at our Thailand distributor in September 2020.

Whistleblower System
Global Whistleblower
SystemDomestic Whistleblower
SystemOverseas whistleblower

Domestic whistleblower

Results report

Whistleblower
reportOverseas whistleblower
contact (country-specific)

Contact

ReportWhistleblower
reportResults report

Domestic whistleblower
contact

ReportContact
ReportCorporate Compliance Dept.

Improvement
reportInvestigation
Investigationand instructions and instructions
for improvement for improvement

Overseas Group companies

Corporate Compliance Committee

We have established a Compliance Committee chaired by the
director in charge of compliance and a Compliance Promotion
Office as the division that handles implementations. The
committee meets four times a year for ongoing implementationof various measures related to the Group’s compliance and toreport on its activities to the Board of Directors and thecorporate auditors. The Yokohama Rubber Group’s Corporate
Philosophy and Code of Conduct have been disseminated to all
Group companies, including those overseas, and serve as
guidelines for the execution of duties by the directors andemployees of each company.

Preparations are currently underway to introduce the system atour production site in Thailand.
In Europe, our European headquarters signed a contract witha company that provides a whistleblowing system, and it
implemented a joint whistleblowing system that it uses alongwith its eight subsidiaries. In addition to serving as awhistleblowing system for these nine companies, including thecontrolling company, the system also functions as a global
whistleblowing system in which the Corporate ComplianceDept. directly receives reports from local employees dependingon the content of the report.
To prepare for the implementation of the whistleblowing
system, training with regard to competition law violations,bribery, and fraud prevention was provided at each site. In
addition, 169 Compliance Promotion Managers have been
assigned to Group companies in Japan and overseas. They work
closely with the Corporate Compliance Dept. to take appropriate
action with regard to workplace incidents, transactions withexternal parties, and various other situations.

Improvement
reportDivisions and domestic
Group companies

Compliance training●2020 Thailand distributor: 60 employees●2020 European headquarters anddistributors: 230 employees●2020 antitrust compliance training: 2,081 employees●2021 Production sites in Thailand: 700 employees(planned)

Compliance education in Thailand18

■ Progress of Major Initiatives

This report will contain data on our group’s main efforts within the context of the ISO26000* framework, along with three-year’s worth ofcorresponding data. Please see our website for detailed information on each initiative.
* ISO26000: Guidance on social responsibility for organizations such as corporations, issued by ISO (International Organization for Standardization).
[Self-Evaluation Standard] ○ = Objective achieved or improved △ = Objective not achieved or no change from current status
ISO26000

Item
Economic Performance

Corporate Organizational
Governance GovernanceDistribution of economic value(total/non-consolidated)
Number of employees who
attended educational classes(non-consolidated)

Compliance* Attendance percentage based
upon employee attendance targets

Number of whistle-blower
incidents (consolidated)* Including anonymous andnon-anonymous consultations

Products

ConsumerIssuesHuman Rights

348,169 million yen

360,277 million yen

302,493 million yen

Fair Operating
Practices100%(Number ofattendees: 94)

Community
Involvement
andDevelopment

100% (Attendance rateof over 90%)
(Number of *Including
educational
attendees: 2,385) classes at overseas and

112

139

154

〇

Group companies

0

0

〇

Raw Materials

Total amount of raw materials
used (consolidated)

796 thousand tons

812 thousand tons

700 thousand tons

〇

Water

Total amount of water used(consolidated)

8,102 thousand m3

8,718 thousand m3

8,036 thousand m3

〇

100%

100%

100%

〇

89.9%

90.1%

89.6%

△

58%

67%

69%

〇

1,333,451MWh
337,461Kl

1,787,203MWh
451,777Kl

1,647,934MWh
416,550Kl〇

Scope 1 583 thousand tons
Scope 1 535 thousand tons
Scope 1 371 thousand tons
Scope 2 469 thousand tons
Scope 2 349 thousand tons
Scope 2 451 thousand tons
Scope 3 22,055 thousand tons Scope 3 22,744 thousand tons Scope 3 20,798 thousand tons〇

Biodiversity

Ratio of sales of fuel-efficienttires for passenger vehicles(summer replacement
tires/non-consolidated)
Enforcement rate ofconservation activities at
production sites (consolidated)

EnergyTotal consumption(consolidated)

Atmospheric Emissions

Greenhouse gas emissions(consolidated)

Environmental Complaint
Processing System

Number of complaints made to
the official complaint processing
system (consolidated)

Child Labor/Forced Labor

0

1

0

〇

0

0

0

〇

0

0

0

〇

0.36

0.26

0.20

〇

37%

31%

25%

△

100%

70%

100%

〇

0

0

0

〇

82.1%
216

93.8%
136

100%
〇
239 (Participation rate

*Number of cases resulting in
official action

Businesses projected to be atrisk of child labor/forced labor
involvement
Number of complaints made to
the official complaint processing
system (consolidated)

Rate of lost-worktime injuries(consolidated/per 1 million
work hours)
Percentage of women employed incomprehensive work positions
Diversity and Opportunity (management positions or positions
that lead to management positions)(non-consolidated)
Assessment of Environmental Percentage of business
Impact, Human Rights, Labor connections developed after
Practices, and Societal Impact the impact assessmentof Business Connections(consolidated)
Compliance Complaints
Number of complaints made toregarding Businessthe official complaint processing
Connections (Societal Impact system (consolidated)
Complaint Processing System) * Number of cases resulting in official action
Number of CSR Study
Number of participants/
Session Participants from Percentage of participation
Business Connections(non-consolidated)

Community△〇1

Occupational Healthand Safety
Labor
Practices

Self-assessment

100%(Number ofattendees: 597)

* Number of cases resulting in
official action

People* Certain business connections aretargeted each year for participation.

* Targets: Small- to mid-sized companies
which we interact with regularly

Local Community

Implementation percentage ofcommunity activities anddialogs at production sites(consolidated)

100%

100%

100%

〇

Promotion of Yokohama Number of trees planted peryear (cumulative)/Percentage
Forever Forestof goal met

943,78872.6%

997,401
76.7%

1,039,318
79.9%〇

Percentage of businesslocations that have madesalary payments exceeding theminimum wage (consolidated)

100%

100%

100%

〇

Market Presence

19

FY2020

Number of cases where rules andregulations or voluntary rules havebeen violated regarding safety of
products, labeling, or offering/useof products (consolidated)

Products and Services

The
Environment

FY2019Health and Safety ofCustomers, Labeling of
Products and Services,
Compliance

Percentage of total production
yielding environmentally-friendly
products (consolidated)

The Earth

FY2018of 90% or more)■ Yokohama Rubber Group at a Glance
Number of applicablesubsidiaries

Number of employees

27,252113

As of December 2020

Ratio of Equity Attributable to
Owners of Parent

Total Assets

860.4

48.3

billion yen%

Main Regions Where Yokohama Rubber Is Developing Its International Operations
Business is conducted in

30

EuropeMajor business sites:
Number of people:

countries
North America

13

12
Number of people: 2,885
Major business sites:

1,035

Japan

35
Number of people: 10,299
Asia
Major business sites: 30
Number of people: 12,832
Major business sites:

Latin America

3
Number of people: 201
Major business sites:

Main Businesses
Tires

Multiple Business Operations

Alliance Tire Group

Various tires, tire tubes,
aluminum alloy wheels, andother peripheral products forpassenger cars, trucks andbuses, pickup trucks,
construction vehicles, industrial
vehicles, etc.

Conveyor belts, various hoses,
fenders, oil fences, marine
hoses, rubber bearings forbridges, adhesives, sealants,
coating materials, sealingmaterials, aircraft parts

Tires for agricultural, industrial,construction, and forestry
machinerySales by Region (FY2020)

Net Sales (Japanese Standards)
Profit Attributable to Owners of Parent (Japanese Standards)
Sales Revenue (IFRS)Profit Attributable to Owners of Parent (IFERS)

95.1

billion yen(16.7%)

Sales revenue

Profit Attributable to Owners of Parent*(JPY billion)

83.0

billion yen(14.5%)

Sales byCustomer Location
570.6 billion yen
in totalSports business, etc.

Net Sales (consolidated) and Profit Attributable to
Owners of Parent

OthersAsia

Others

Japan

240.9

billion yen(42.2%)(JPY billion)

668.1 646.3

700
600

596.2

574.0

35.2

40.0

35.6

151.6

billion yen(26.6%)

570.6

500
26.3

400
North America

45650.2 650.5 42.0

300

18.8

200

30
25
15

9.4

2016

35

20
10

100
0

40

2017

2018 2019502020 (FY)*: Profit Attributable to Owners of Parent under IFRS

20Third-party Opinion
This opinion has been written based on the contents of this report, and interviews held with people at Yokohama Rubber.

Keisuke, Takegahara
Executive Fellow
Research Institute of Capital Formation,
Development Bank of Japan Inc.
He joined the Development Bank of Japan in
1989. Prior to assuming his current position, he
served as the Chief Representative in Frankfurt,
Germany, as General Manager of theEnvironmental Initiative & Corporate Social
Responsibility-Support Department, and as an
Executive Officer. He has held a number ofgovernment positions, including as temporary
member of the Central Environmental Council ofthe Ministry of the Environment.

In brief, CSR Report 2021 is characterized by being greatlyorganized as a medium for disclosing non-financial
information by focusing on the new medium-term
management plan, Yokohama Transformation 2023 (YX2023).
As a result, while maintaining its function as a bridge toconvey the essence of the Group’s CSR activities to a broad
audience and to guide readers wanting to know more about
the Group to detailed information online, this report is about
to communicate a message to readers about the Group’s
value creation story by itself. This development is clear whencontrasted with last year’s report, which I also evaluated.
The biggest change is the integration of the new YX2023
medium-term management plan. First, the Message from the
President clearly indicates the direction of the new
medium-term management plan, especially the concept of“deepening existing businesses and exploring market
changes” to create new value. On the following pages, the
new medium-term management plan is expanded into fiveimportant issues and combined with a growth scenario
through resolving social issues. While the previous report only
listed the awareness of risks and opportunities insustainability management, they now are integrated into themedium-term management plan and have a clear story.
A straightforward example of this is the rearrangement of theimportant issues. The company has placed Products at the
beginning, and also has increased the size by incorporatingproduct information. In order to respond to the majorchanges symbolized by CASE and MaaS, the strategy ofadding value in the consumer tires business and pursuing a
new profit model in the commercial tires business is aconcrete and easy-to-understand example of the philosophy
of “Business Creation and Business Maintenance,” which aims
to deepen existing businesses and explore market changes, orto balance offensive and defensive positions.
The second thing that I noticed was the newly added“Value to be created” item at the beginning of each page forthe five important issues, which describes the value (outcome)that the company provides to society through its business.
After reviewing last year’s content and asking thatconsideration be given, I was extremely pleased by theimpression that the integration of business and social value
has progressed in response to the logic of ESG investment that
requires the synchronization of social issue resolution withgrowth strategies.

21

In addition, I also highly appreciate the inclusion of SDGs
contributions on each page of the important issues andcomments from concerned parties as a way to reflect theperspectives of stakeholders.
The consolidation of business and social issues can also beseen in the content for each of the important issues. For
example, in “The Earth,” while the previous report focused on
the risks of sustainable natural rubber sourcing, this year’s
report introduces both the risks and opportunities under thelarger concept of carbon neutrality and a circular economy. In
particular, I was highly impressed by the fact that the report
clearly indicated the quantitative target of increasing the useof renewable raw materials to at least 30% by 2030, and alsomentioned a new technology to produce butadiene frombiomass as a concrete measure to achieve this, which shined alight on the company’s innovation.
I would like to salute your efforts to considerably increase
the functionality of this communication tool without greatlychanging the size. Moreover, I also would like to share a few
areas that I hope will be further improved in the future.
The first is the disclosure of medium to long-term targets(vision). Considering the long-term perspective which is often
taken by the Group, as symbolized by the value creation
scenario being set with the major changes in the automotive
industry for the transition to a carbon-free society and thestatement “looking ahead to the next 100 years,” I believe that
this is the best time to present specific long-term targets anda vision. On top of that, it is also essential to present
medium-term target levels as a basis to self-evaluate recent
performance data. Regarding this point, I think it would be
effective to utilize the TCFD framework mentioned in the
Message from the President to consider the direction of theconvergence of non-financial disclosure rules expected to be
developed in the future. For example, the message about thelong-term sustainability of the business model will bestrengthened by organizing and disclosing much of theinformation contained in the memorable “Products” section
as risks and opportunities in each segment utilizing the TCFD
framework.
In addition, it would be better if the relationship between
the five important themes is elaborated further. The five ofthem can be divided into “Product,” which shows a direct viewof the business (value creation), and the remaining four that
could be considered the supporting foundation. Lining up thefour elements that support the business, namely theenvironment, people, community, and corporate governance,
I feel that what needs to be mentioned will naturally come tolight. The Environment section, which was revised in thisreport, was very convincing from this perspective. I hope that
information about human capital and communities(emphasizing global diversity) will similarly be described in
more detail as well.
While the level of what is requested has been raised
because of the vast improvements, I look forward to seeing
further changes that will continue to deepen theunderstanding of readers.

Ms. Joanna Sook Ja Park
Appassionata, Inc., President and Consultant
Appassionata was established in 2000 topromote work-life balance and diversity.
Appassionata has supported many companies
with human resources development andawareness reform by addressing areas such as
unconscious prejudice, diversity, and telework(working from home).

Four years have passed since the launch of the Diversity
Promotion Task Force, and great progress has been madeduring that time to improve the level of activities based on thecompany’s basic policy of “positioning ourselves as a company
that welcomes diverse workstyles and that people will want tocontinue working at over the long term.”
At the start of 2016, the company conducted employee
opinion surveys, and interviews with all female employees,
senior caregivers and managers. They listened to the opinionsof employees to better understand the current situation andissues, and labor and management collaborated to develop asystem that met those needs. The company has responded tothe diversifying needs of employees by expanding systems thatmake it easier for employees to work long hours based on theirneeds, such as the abolition of the core time period of the
flextime system, the acquisition of hourly paid leave, theexpansion of the applicable scope of staggered working hours,
and the establishment of childcare and senior care consultation
services. Doing this creates a culture that accepts diverse values.
These measures are not only for women, childcare andcaregivers, but also for people with disabilities and the LGBTQ
community, and are being promoted to also include men, tocreate a culture where everyone can recognize, respect andwork together, and to support the productivity improvements
and new value creation.
The company has begun to work on “increasing job
satisfaction” as the next step after “enhancing the ease ofworking” in order to allow the active participation of diverse
human resources. They will focus on fostering career awarenessamong individuals and strengthening diversity management
among managers, with the aim of realizing common goals
while respecting individual values. For women’s advancement,
the company is motivating female employees by not only
improving their retainment but also their skills and percentage
in management positions.

Many seminars were also held in addition to general support
for balancing work. While face-to-face training was not possible
due to the COVID-19 pandemic, the company promptly
switched to and conducted online seminars, including
measures to support career development, MBA mini courses for
women, and subordinate cultivation seminars for managers.
This has led to improvements in women’s career motivationand manager awareness of subordinate development.
Due to the accelerated use of telecommuting and spread of
new workstyles during the COVID-19 pandemic, the company
conducted a telecommuting survey to identify the benefits anddrawbacks. Most of those surveyed agreed that all work could
be handled at home. Some of the benefits were a reduced
commute and travel time, more time with families, increased
work concentration and improved work productivity.
Meanwhile, drawbacks included communication problems,
the work environment and network devices at home, andresponding to external customers. In particular, theyhighlighted problems related to how to communicate. Even
when it is not possible to meet face-to-face, it is best to utilize
various methods to enhance communication. In terms ofenvironments, preparing homes unsuitable for working (small,
cohabiting family members) and networks is essential toprevent decreases in work effectiveness and efficiency. In
addition, the discovery that management became difficult as
the frequency of telecommuting increased, while once or twicea week caused no problems, will surely prove useful for its
implementation post-COVID-19. One major management issue
is harassment. In recent years, this has also become one of thebiggest problems for many companies. In order to respond tothe harassment prevention measures required through legal
amendments, the company added new prohibition clauses for
power harassment and SOGI harassment*1 in its employment
regulations. I also commend the company for making
employees aware of the penalties for harassment, and that they
may be held accountable for turning a blind eye to it. Withlevels of harassment failing to decrease, managers will continue
to be required to raise awareness and conduct prevention
activities. I hope that the company will continue to respondflexibly to the rapidly changing social and businessenvironments, and provide support to allow diverse humanresources to play healthy and active roles.
*1 SOGI harassment: Abbreviation for “sexual orientation and gender identity,”
which may lead to discrimination, harassment such as bullying, anddisadvantages in social life

Response to Third-party Opinion
Thank you for taking a proper look at the Group’s initiatives.
We will consider your feedback and use it for making
improvements. In the countries and regions where Yokohama
Rubber operates, we will continue to provide information to
our employees and business partners to protect their safety
and health against the occurrence of natural disasters and
COVID-19, in addition to workstyles reforms and mutualcommunication.
As stated in the YX2023 medium-term management planfrom the Message from the President, each and every
employee aims to achieve the CSR slogan “Caring for the
Future” by promoting “deepening and exploring” for newvalue creation and ESG management in an integrated manner.

In response to the drastic changes in the mobility society andcarbon neutrality, we would like to promote the presentation
to stakeholders of medium and long-termtargets and a vision that will lead to thesocial issue resolution in the initiatives
supporting our business.
In addition to creating safe and secure
workplaces as previously mentioned, we
will strive to become a company where
diverse human resources are welcome
Gota Matsuo
and can continue working for a long
Member of the Board andManaging Officer,
time as a part of global diversity.
Head of Corporate Social
Responsibility Division

22

The Yokohama Rubber Co., Ltd.
36-11, Shimbashi 5-chome, Minato-ku, Tokyo
105-8685, Japan
Corporate Social Responsibility Planning Department
Tel. +81-3-5400-4705
Corporate Communications Department
Tel. +81-3-5400-4531

We are continuing to make an active contribution
toward tire safety and local communities
Since 2015, when our partnership with Chelsea Football Club began,
Yokohama Rubber has been working together with the Chelsea Foundation –the Club’s social responsibility program – to support CSR initiatives across theglobe.
The Chelsea Foundation uses the power of football and sport to motivate,
educate and inspire.
One of the Foundation’s core activities is hosting football-coaching eventsfor young people in their communities.
In 2021, Chelsea Football foundation and Yokohama Rubber invited key
workers from three NHS trusts* across north-west London to compete in a
football tournament at Stamford Bridge to thank them for all their work
during the covid-19 pandemic and give them a well-earned fun afternoon off.
This pitch day was donated to the NHS by Yokohama Rubber.
In the U.K. Yokohama Rubber has collaborated with Chelsea to remind fansof the importance of vehicle safety inspections in past few years.
Yokohama Rubber will continue to collaborate with Chelsea FC in the
future, endeavoring to make a positive contribution to both tire safety andlocal communities.
* NHS trust:
NHS trust is an organizational unit within the National Health Service in the U.K.

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Football tournament at Stamford Bridge joined by
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Yokohama Rubber is a signatory to the United Nations Global Compact.
Yokohama Rubber is an advocate of Fun to Share, a climate change program working to realize a low-carbon society.
Yokohama Rubber Group is an Official Global Tyre Partner of Chelsea F.C.