YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information

Environment
Environmental management■ Environmental policy promotion system
Toward achievement of YKK Sustainability Vision 2050, we established the YKK Sustainability Committee under theManagement Strategy Committee. With the company president as its chair, the Committee is addressing environmental issues,
such as climate change. The Committee is doing so by determining policies and strategies as well as by building a global
sustainability promotion structure.

■ Environmental management system
YKK builds an environmental management system in each company that follows the ISO 14001 international standard andpromotes continuous environmental activities.
Furthermore, YKK has formulated the YKK Global Criteria of Compliance (YGCC), which is based on internal rules related toworking conditions, health and safety, the environment, and fair business practices. Self-checks are carried out once a year in
addition to periodic external audits.

■ Environmental objectives and targets
YKK has established a Mid-term Environmental Management Policy and measures are analyzed every four years to fit the Midterm Environmental Management Policy. In the 6th Mid-term Environmental Management Policy, starting from FY2021, we arecarrying out activities to achieve a sustainable society focusing on the concept of “Technology-oriented value creation” and withthe aim of becoming a company for the social good that is in harmony with the environment. Activities are being carried out after
formulating environmental objectives each year toward achievement of the environmental management policy.

YKK 6th Mid-term Environmental Policy (FY2021-FY2024)
Under the 6th Mid-term Management Vision, “Technology Oriented Value Creation,” YKK will promote sustainability
through its business activities and products, harmonize with the environment, continue to be a company for the social
good, and contribute to society.
Guidelines for Action■ In accordance with YKK Sustainability Vision, we will strengthen our environmental management system and carry out
continuous improvement to ensure environmental compliance and reduce environmental impacts.

■ In order to achieve climate neutrality by 2050, we will reduce CO2 and other greenhouse gas emissions over the long-term.

■ We will reduce environmental impacts throughout the product life cycle and promote the transition to sustainable energy andmaterials.

■ We will reduce our impacts and loads on the environment by reducing the use of water and chemical substances for thepreservation of ecosystems and enrichment of life.

April 1, 2021

Hiroaki Otani

President, YKK Corporation

FY2023 YKK Environmental Objectives
Contribute to the society in harmony with environment
1 Response to climate change● Scope 1 and 2 CO2 emissions● Scope 3 CO2 emissions

2 Reduce environmental impact

21% reduction from FY2018 (50% reduction by FY2030)
12.5% reduction from FY2018 (30% reduction by FY2030)● Waste・Waste recycling rate 88% or more (90% by FY2025)
・Waste intensity reduction 4% year-on-year reduction (FY2030 waste emissions = FY2018 waste emissions)● Water (intake) intensity reduction 2% year-on-year reduction (FY2030 water intake = FY2018 water intake)● Evaluate water risks taking into account the global environment● Promote appropriate management and reduction of chemical substances

3 Provide and propose environmentally friendly products● Ensure the implementation of environmentally friendly themes in the development of products and equipment

4 Ensure compliance●A chieve zero environmental compliance violations and zero environmental accidents
・Foster environmental human resources through environmental education
・Strengthen environmental management system via YGCC

– 13 –YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information

Climate Change■ Fundamental Approach
In March 2020, YKK signed the Fashion Industry Charter for Climate Action aimed at achieving the objectives of the Paris
Agreement, to enable the company to achieve climate neutrality by 2050. In March 2021, we also set a CO2 reduction target oflimiting the average worldwide temperature increase to 1.5°C (objective approved by the SBT), and we are working to implement
energy conservation and renewable energy, in an aim to reduce CO2 emissions at each of our business sites around the world.

■ FY2022 Initiatives
YKK Group achieved the GHG emissions target of a 16.8% reduction for FY2021 compared to FY2018. (Estimated actual:
46.9% reduction from FY2018)
The entire Group is moving forward with renewable energy procurement, and 31 of our plants around the world have achieved
procurement of 100% of their used power as renewable energy.
In addition, we are also creating renewable energy, including the operation of solar power generation systems, at 21 locations(total generation capacity: 8,278 kW).

Changes in CO2 emissions
In March 2021, YKK obtained certification under the SBT Initiative’s 1.5°C Target.
We will aim for a 50% reduction (compared to FY2018) of greenhouse gases in Scope 1 and 2, and a 30% reduction(compared to FY2018) in Scope 3 by 2030.

Scope 1 and 2*Calculated using the YKK Group GHG calculation rules(CO2 conversion factor fluctuation of electricity)(1,000 t-CO2)(1,000 t-CO2)

600

545

523

500

443 451400
290 273

300
200
100
0

2018 2019 2020 2021 2022 2030 (FY)(objective)(base year)

2018

2019

2020

2021

2022

Japan

77

69

57

66

37

Americas

41

43

33

34

31

Europe

27

27

25

21

19

ISAMEA

45

46

34

47

26

ASEAN

225

214

178

171

159

China

129

123

116

113

17

CO2 emissions in FY2022 were reduced by 46.9% comparedto FY2018

Scope 3

* Calculated using the Scope 3 calculation method
noted on page15.

(1,000 t-CO2)(1,000 t-CO2)

1,000
800

873

798

741
563

600

690

611

400
200
0

2018 2019 2020 2021 2022 2030 (FY)(base year)(objective)

2018

2019

2020

2021

2022

Japan

232

198

116

153

163

Americas

107

92

63

88

81

Europe

41

41

32

42

40

ISAMEA

57

59

43

47

49

ASEAN

239

224

157

213

191

China

198

183

152

198

167

CO2 emissions in FY2022 was reduced by 20.9% comparedto FY2018– 14 –YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information

Breakdown of CO2 emissions from the entire supply chain* (FY2022 results by region)
Region
Total

Japan

(1,000 t-CO2)

Americas Europe ISAMEA ASEAN

China

Scope1

Direct emissions from fuels burned on-site, etc.

83

11

10

17

10

24

12

Scope2

Indirect emissions from purchased power and the use of heat

206

27

20

2

17

136

5

Scope3Category 1

Purchased Goods and Services

421

110

44

13

16

124

113

Category 2

Capital Goods

80

32

7

9

7

14

10

Category 3

Fuel- and Energy-Related Activities Not Included in
Scope 1 or Scope 2

54

9

5

4

5

19

12

Category 4

Upstream Transportation and Distribution

54

3

17

7

9

8

10

Category 5

Waste Generated in Operations

1

0

0

0

0

0

0

Category 6

Business Travel

1

0

0

0

0

0

0

Category 7

Employee Commuting

10

5

1

1

1

2

1

Category 8

Upstream Leased Assets

－

－

－

－

－

－

－

Category 9

Downstream Transportation and Distribution

－

－

－

－

－

－

－

Category 10

Processing of Sold Products

0

0

0

0

0

0

0

Category 11

Use of Sold Products

－

－

－

－

－

－

－

Category 12

End-of-Life Treatment of Sold Products

70

3

7

5

11

23

20

Category 13

Downstream Leased Assets

－

－

－

－

－

－

－

Category 14

Franchises

－

－

－

－

－

－

－

Category 15

Investments

－

－

－

－

－

－

－

Other

－

－

－

－

－

－

－

Scope 3 Total

690

163

81

40

49

191

167

Scope 1, 2, and 3 Total

980

200

112

59

75

350

183

*C
 alculated using the YKK Group GHG calculation rules (CO2 conversion factor fluctuation of electricity) and the Scope 3 calculation method noted later

Scope 3 calculation method (amount of activity x emission intensity)
Categories

Calculation method
Amount of activity

Emission intensity

Category 1

Purchased Goods and Services

Weight of purchased raw materials

Intensity database (*1, *3)

Category 2

Capital Goods

Equipment investment value of capital goods

Intensity database (*1)

Category 3

Fuel- and Energy-Related Activities
Not Included in Scope 1 or Scope 2

Amount of energy (electricity and fuel)consumption

Intensity database (*1, *2)

Category 4

Upstream Transportation andDistribution

Cargo owner’s procurement ton-kilometers

Intensity database (*1, *2)

Category 5

Waste Generated in Operations

Amount of processed waste materials per type

Intensity database (*1, *2)

Category 6

Business Travel

Transportation allowance per transportation means Intensity database (*1)

Category 7

Employee Commuting

Transportation allowance per transportation means Intensity database (*1, *2)

Category 8

Upstream Leased Assets

We excluded emissions associated with the operation of the leased assets because they were
included in Scope 1 and 2.

Category 9

Downstream Transportation andDistribution

We excluded it because we included it in category 4 because the product is shipped directly tothe customer.

Category 10

Processing of Sold Products

Amount of production(duration and number of pieces)

Category 11

Use of Sold Products

We excluded this because there are no use-stage emissions from the products we sold.

Category 12

End-of-Life Treatment of Sold
Products

Amount of production (weight)

Intensity per amount of production in YKKprocessing process

Intensity database (*1, *3)

Category 13

Downstream Leased Assets

We excluded this because we do not lease to others.

Category 14

Franchises

We excluded this because we are not franchise presidents.

Category 15

Investments

We excluded it because we are not an investment business and not a financial services provider.

Other

We excluded this category because it is optional.

*1 “Emission Intensity Database for Calculating Greenhouse Gas Emissions for Organizations through Supply Chains (Ver. 3.1)”*2 “LCI Database IDEAv2 (for Calculating Greenhouse Gas Emissions for Supply Chains)”*3 “GaBi Database”– 15 –YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information

CO2 emissions in supply chains (FY2022 results)〔Scope2〕

Waste Generated in
Operations

Indirect emissions from purchased
power and the use of heat

206,000 t-CO2

・Purchased Goods andServices
・Capital Goods
・Fuel- and Energy-Related
Activities Not Included in
Scope 1 or Scope 2
・Upstream Transportation andDistribution

1,000 t-CO2(21.1%)〔Scope3〕(0.1%)

Downstream Transportation
and Distribution

YKK Group—* Included in transportation anddistribution (upstream)

609,000 t-CO2〔Scope1〕(62.1%)

Business Travel
Employee Commuting

Direct emissions fromfuels burned on-site, etc.

83,000 t-CO2

11,000 t-CO2(8.5%)

Processing of
Sold Products(1.1%)

0 t-CO2(0.0%)

End-of-Life Treatment of
Sold Products

Use of Sold Products

70,000 t-CO2—(7.1%)

Changes in energy consumption
Electric power

Fuel

（TJ）

10,0008,751

8,000 1,676

9 8,431 9
1,655

6,000
4,000

7,066

6,767

8,784
7,416
1,412

7

1,155
1,689

8,272

Electric
power

3,104
1,594

5,996

5,939

2,000
0

(TJ)

3,573
2018

2019

2020

2018

2019

2020

2021

2022

1,216

1,082

880

1,081

556

Americas

759

815

659

604

600

Europe

398

316

291

218

61

ISAMEA

478

517

445

609

355

ASEAN

2,615

2,463

2,294

2,094

1,953

China

1,599

1,574

1,427

1,334

48

Japan

196

182

145

158

164

Americas

229

212

153

216

199

Europe

258

303

281

327

331

ISAMEA

227

206

115

173

164

ASEAN

459

461

423

469

451

China

307

291

294

347

286

Japan

3

3

2

8

485

Americas

0

0

0

82

95

Europe

0

0

0

109

217

ISAMEA

4

3

2

54

322

ASEAN

1

2

2

490

602

China

1

1

1

413

1,383

Renewable energy

2021

2022(FY)

Fuel

RenewableenergyJapan*The graphs and tables have been created based on the combination of electricity, fuel andrenewable energy. Fuel is the sum of A heavy fuel, kerosene, LPG, LNG, town gas, natural gas,
diesel oil, gasoline, C heavy fuel, coal, and steam.

– 16 –YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information

COLUMN

Initiatives to Reduce Scope 3 GHG Emissions
We are aiming for a 30% reduction in Scope 3 greenhouse gas emissions (compared to FY2018) by 2030. Scope 3
emissions in FY2022 were 690,418 t (20.9% reduction compared to FY2018). In FY2021, we established a Scope
3 reduction team under the Sustainability Committee, which has been strengthening the promotion system acrossdepartments toward further Scope 3 emission reductions.
In FY2022, we set a target to shift to the use of recycled materials for the main materials (copper, zinc, and PET)
used by YKK to further reduce Category 1 emissions from purchased goods and services, which makes up over 60%
of YKK’s Scope 3 emissions. YKK has also begun building cooperative relationships through the supply chain in aneffort to achieve this target. These efforts range from adding additional questions to the CSR questionnaire for all
main suppliers to sharing our GHG emissions targets, requesting the submission of data for emissions from purchased
goods and services, and inquiring about renewable energy.
Going forward, we will consider specific initiatives worldwide to achieve the recycled material target and expand the
CSR questionnaire to overseas operating companies to promote Scope 3 emission reduction activities.
(1,000 t-CO2)

1,000
800
600

873

20.9%
reductioncompared to
FY2018

798

741
563

690

611

compared to
FY2018400
200
02018 2019 2020 2021 2022 2030 (FY)(base year)(objective)– 17 –

30%
reductionYKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information[Reference] Information Disclosure Based on TCFD Recommendations

Since the adoption of the Paris Agreement in December 2015, there has been more and more momentum to evaluate the impact
climate change has on business activities worldwide. Within this business climate, the TCFD announced its recommendations inJune 2017, which YKK signed onto as a supporter in 2019.
YKK evaluates and strives to incorporate the impact climate change may have on its business activities into its businessstrategies according to TCFD recommendations.

■ Governance
The YKK corporate governance system essentially consists of the Board of Directors, which carries out decision-making andsupervisory functions related to management policies and other important matters, and the Audit & Supervisory Board, which
carries out auditing functions. We have also introduced an officer system to promote business execution. In addition to regularmeetings held once a month, the Board of Directors holds extraordinary meetings as necessary to discuss and make decisions
on business plans as well as organizational and other important management matters. It receives reports and supervises the
progress of the business execution of each Group company as well.
The Sustainability Committee launched as an advisory body for the Board of Directors discusses and promotes management
policies and strategies related to sustainability, such as climate change. The President serves as chair of the Committee.
Through the Sustainability Committee, the President serving as chair decides on sustainability policies and strategies for
its YKK Fastening Business and works to build global sustainability promotion systems. These policies, strategy, and global
sustainability promotion systems designate the final decision about how to respond to climate change and other sustainability
issues. We have established seven working groups under the Sustainability Committee to take the lead on formulating andpromoting specific action plans for each of these challenges. For example, the Process and Resource Management Working
Group evaluates and executes the development and adoption of manufacturing equipment that will help reduce GHG
emissions. The Sustainable Product Working Group deliberates on and approves policies on the development of products
using sustainable materials.
To promote these sustainability policies and specific action plans globally, YKK has set up sustainability committees in each of
the six regions where it does business around the world. These local sustainability committees provide reports on thepenetration of policies in their regions as well as the progress of the action plans to the Sustainability Committee in Japan. The
President who serves as chair of the Sustainability Committee monitors and evaluates the progress of action plans from theseregional reports in addition to deliberating and approving revisions of strategy and improvement measures toward achieving theaction plans.

Sustainability promotion structure
Board of Directors
Management Strategy Council
Sustainability Committee(Chair: President of YKK Corporation)

Sustainability Department

Each Division

Working Group
Process and Resource Management
Working Group
Sustainable Product Working Group

Global Sales Headquarters

CSR Standards Working Group

Manufacturing & Engineering Division
Administration Division

Supplier Management
Working Group

Snap & Button Business

Human Rights Working Group
CDP Working Group
Scope 3 Reduction TeamJapan

Americas

Europe

ISAMEA**India/South Asia/Middle East/Africa– 18 –

ASEAN

China

YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information■ Strategy
YKK identifies and evaluates major risks and opportunities for the Fastening Business related to climate change according to
the TCFD recommendations.

Transition risk

Type

Financial impact on YKKCurrent
regulation

The YKK Headquarters is already complying with the carbon tax
in Japan. Although the carbon tax in Japan is low and has arelatively small impact, there are risks of higher operation costs
of YKK plants and the YKK buildings if the carbon tax rises in
the future.

In 2021, we have approved the introduction of the internalcarbon pricing system and are promoting capital investmentsthat include energy-saving as well as solar power generationequipment, to reduce GHG emissions.

New regulation

The EU Plastics Strategy may raise production costs due to its
new rules that require the use of recycled plastics. We may also
see cost go up in order to support the shift to renewable energy
happening in each nation around the world, such as thepurchase of equipment and green power. These are some risks
that may reduce revenue.

Therefore, we will strive to broaden sales of products using
recycled plastics to improve profitability as well as develop
technologies to reduce manufacturing costs.

Technology

A delay in our response to advanced technologies to combat
climate change could make YKK businesses less competitive,
while inaccurate forecasts of demand could make capital
investments fail. These are some risks that could impact
revenue.

Therefore, we will respond through action that includes verifying
the progress of main development themes on a monthly basis
and clarifying rules in writing about processes such as methods
to calculate the effectiveness of capital investment plans aswell as discretionary and approval processes.

There is also the risk of losing sales opportunities if YKKproducts and manufacturing processes cannot satisfy theenvironmental requirements of customers or the environmental
regulations of each government. Specifically, the garment
industry is said to be just behind the oil industry in CO2emissions, which could impact sales if YKK products do notcomply with customer requirements and environmental
regulations.

YKK will develop and manufacture products based on the
climate-related action of each nation and organization as well as
the product preferences of consumers. We will also develop
products by anticipating the medium to long-term outlook ofenvironmental action while further supporting evaluations of ourimpact on the environment and compliance with the regulations
in each country.

A rise in the average temperature has the potential to decreasedemand for winter clothing, which in turn would impact thesales of YKK fastening products.

We will respond through market analyses, accurate priorsupplementation of consumer demand, and various othermeasures.

A delay in climate-related initiatives comes with the risk ofharming the reputation of YKK with its main sustainabilityoriented customers worldwide.

We formulated and announced the YKK Sustainability Vision
2050 to lay out and engage in specific initiatives to reduce
GHG emissions and increase the use of renewable energy.

There is also the risk of harmful effects on health and theenvironment around our factories in the event hazardous
chemical substances leak from YKK manufacturing bases
damaged by more frequent and severe flooding due to the rising
global temperature.

We see flood damage as one major risk that would have a severe
impact on corporate management. Guidelines were formulated
in 2020 to clarify policies to minimize this damage. These
guidelines primarily pertain to Japan. With reference to local
hazard maps, the policies define flooding, evacuation, and othersoft measures to carry out in order to reduce and prevent
damage to any facilities in flood zones as much as possible.

There are also risks of declining profits due to higher airconditioning costs at YKK plants and skyrocketing raw material
prices driven by the rising average temperature worldwide.

Therefore, YKK is developing technology to reduce
manufacturing costs as well as running costs through theintroduction of energy-saving air-conditioning systems. We will
also strive to build systems that can always secure raw
materials and resources at the right price in the right amountwhile keeping an eye on trends in the global economy.

Resource
efficiency

By improving the energy efficiency of YKK equipment, we can
avoid paying the carbon taxes anticipated in many nations in the
future.

In 2021, we have approved the introduction of the internalcarbon pricing system and are promoting capital investmentsthat include energy-saving as well as solar power generationequipment, to reduce GHG emissions.

Energy source

By using power derived from renewable energies, we can avoid
paying the carbon taxes anticipated in many nations in the
future.

YKK researches the state of power infrastructure in eachcountry to plan and execute PV, PPA, and green options suitable
for the location of each plant on an annual basis.

MarketReputation

Acute
Physical risk
Chronic

YKK response

Over the long-term, we will examine the use of hydrogen andother new energies as an alternative to existing energy options.
Opportunity

By expanding products that use recycled materials and help
contribute to the reduction of GHG emissions in other ways, wewill contribute to solutions to the climate-related issues of ourcustomers and can expect higher sales.

Products andservices

In its YKK Sustainability Vision 2050, YKK has set the goal of
switching 100% of the fiber materials used in its fastening
products to sustainable materials (recycled materials, naturally
occurring materials, etc.) by 2030.
To achieve this target, YKK is steadily expanding sales of
products in the NATULON® series that uses recycled polyester
as a tape material, while formulating plans for a changeover tothese materials annually by item and consumer demographic,
and transitioning products from virgin materials to recycledmaterials.
We also engage in various dialogues to solve various issues bydisclosing information to customers using CDP and industry
standards in addition to sharing our activities. Trials forswitching products to recycled materials as well as preparations
for product LCA disclosure are underway.

– 19 –YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information■ Risk Management
In accordance with the Risk Management Policy, the YKK Fastening Business identifies risks once each year for eachorganization, confirms the worst-case scenarios and the status of response, and assesses sixteen levels of risks according to
the scale of loss and damage (four-level evaluation: ¥100 million or less, ¥100 million to ¥1 billion, ¥1 billion to ¥5 billion, and¥5 billion or more) and the frequency of occurrence over (four-level evaluation: 5 years or less, 5 to 20 years, 20 to 50 years,
and 50 years or more). In addition, risks that are anticipated to have an impact of ¥100 million or more per year are deemed to
be key risks that should be managed at the corporate management level.
We classify risk items into one of four quadrants (financial risks, risks in specialized fields, risks addressed by the committee,
and business execution risks) and identify risk trends and visualize the progress of the response. Moreover, founded in its Midterm Management Plan (four-year plan), YKK fully considers the impact of changes in the market and with its reputation while
evaluating the importance of relevant risks. Management receives regular reports about all these risks.
We also incorporate climate-related risks into the Group-wide risk assessment and management process to anticipate not
only the short and medium-term but also the long-term impact (up to about 2030). The impact of torrential rains due to physicalrisks and the rising temperature in particular could flood YKK plant facilities and stop supplier operations. We have formulated a
Business Continuity Plan (BCP) in an effort to reduce and prevent these risks.
*See page 46 for the Risk Assessment Process and the Flow of Identifying Key Risks (conceptual diagram).

■ Metrics and Targets
Our businesses aim to become climate neutral (net-zero emissions) by 2050. Therefore, we have set targets to reduce CO2 andother greenhouse gas emissions from our company and supply chain. In addition, these targets have been certified by the
Science Based Targets initiative (SBTi).
MetricTargetScope 1, 2

Reduction of direct CO2 emissions

50% reduction by FY2030 (compared to FY2018)

Scope 3

Reduction of indirect CO2 emissions from the supply chain

30% reduction by FY2030 (compared to FY2018)*See page 14 for the actual Scope 1, 2, and 3 CO2 emissions.

– 20 –YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information

Material Resources■ Fundamental Approach
Resources are crucial for monozukuri (manufacturing) companies, but the amount available is limited. In order to conductsustainable business management, YKK is promoting efforts to achieve a circular economy. For example, we proactively
research the use of recycled materials and plant-based materials and adopt and provide them in an aim to reduce waste
throughout the lifecycle of our products. Meanwhile, we strive to recycle any generated waste materials as much as possible andto reduce the amount of waste that ends up in landfills.

■ FY2022 Initiatives
In “YKK Sustainability Vision 2050,” YKK has set the target of increasing the recycling rate to 90% by 2030. In FY2022, we
conducted activities aimed at achieving a waste recycling rate of 87% or more. Thoroughly separating waste materials andstrengthening reuse at each of our operating companies and improved waste processing technology in the Asia Region, andother factors, combined to result in a recycling rate of 87.3%, maintaining the previous year’s rate, which was significantly
higher than the target. The amount of waste was also reduced 96% compared to FY2018. As the world shows increasing
interest in a circular economy, YKK is moving forward with efforts to recycle and reuse resources and reduce waste.

Volume and Proportion of Sustainable Materials Sales■ Sales volume● Proportion(%)(millions of meters)

1,500

90
1,252
41%

1,000

60

26% 703

500
1%

0

30

12% 367
3%
23

88

6%164

0
2018 2019 2020 2021 2022 2023 (FY)(Plan)

Changes in Waste Emissions, Waste Recycling Rates
Recycling rate
Disposed vol.

(1,000 t)51.6

50
40
30
20
10
0

Sales vol.

Waste recycling vol.

52.4

50.8

(%)

49.5 100

42.4
24.4
26.4
90
23.2
21.7
24.2
83.3
80.9
87.3
87.0
78.2

80

17.1

11.3

2018

16.9
9.7

2019

13.6
7.1

2020

19.3

18.9

6.8

6.3

70
60

2021

50

2022 (FY)Japan

Recycling rate
Disposed vol.

(1,000 t)

Sales vol.

Waste recycling vol.

Americas
Recycling rate
Disposed vol.

(%)(1,000 t)

40

90

40

30

80

30

20

70

20

60

10

50
2022 (FY)

0

50

10
0

99.9

99.9

99.9

99.9

10.2
5.5
4.7

8.5
4.9
3.6

7.3
4.1
3.2

7.8
4.5
3.2

2018

2019

2020

2021

ISAMEA
Recycling rate
Disposed vol.

Sales vol.

99.9

7.4
4.4
3.0

Waste recycling vol.

(1,000 t)

(%)

50

94.0

93.8

40
30

100
89.9

90.1

79.6

20
10
0

100

2018

2019

2020

2021

– 21 –

77.9
64.7

62.3

78.0

66.8

ASEAN

Recycling rate
Disposed vol.

2020

Sales vol.

2021

30

70

20

60

10

30

70

20

60

10

(%)

100
85.1

13.5

0

40

80

Waste recycling vol.

50
40

90

2022 (FY)(1,000 t)

63.5

6.1
2.5
4.9

68.8

13.1
5.6
3.4
4.1

2018

2019

85.0

2021

0

Waste recycling vol.

(%)

100

83.0

84.7

80.5

84.7

83.8

70
4.0 1.8 3.7 1.5
1.5 0.7 1.5 0.7

2018

2019

China

Recycling rate
Disposed vol.

3.5 1.4 4.4 2.4
1.5 0.5 1.3 0.7

2020

Sales vol.

2021

60

4.0 2.1
0.7

1.2
502022 (FY)

Waste recycling vol.

(%)

100

50
40
30

70

20
10
0

90
80

(1,000 t)

802022 (FY)

Sales vol.

50

90

68.9
13.7
12.7
10.6
5.3
60
5.0
4.7
5.81.9 6.3 2.1
2.6
3.3
50

2020

Recycling rate
Disposed vol.

(1,000 t)

5.6 1.4 5.4 1.3 3.8
1.0 5.5 1.5 5.61.9
2.1 2.1 2.2 1.9 1.5 1.3 2.8 1.2 2.51.2
50

2019

Europe

(%)

100

2018

80

2022 (FY)

Waste recycling vol.

50

90

4.4 0.8 3.7 0.9 2.7 0.9 4.3 1.0 4.3 0.9
2.7 0.9 2.6 0.2 1.7 0.2 2.9 0.4 2.9 0.4
50

Sales vol.

81.0

13.9
7.7
3.6
2.6

2018

82.9

87.6

85.5

86.8

90
80

16.4
9.9
3.7
2.8

2019

14.4
9.6
3.1 1.8

2020

17.8
12.0

14.4
9.7

70
60

3.2 2.6 2.8 1.9

2021

50
2022 (FY)YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information

COLUMN

Switching to Sustainable Packaging Materials

30% biomass polyethylene inner packaging
materials

One of the five themes of the YKK Sustainability Vision 2050 is material
resources. We are promoting efforts aimed at transitioning to a sustainable modelby replacing all vinyl/plastic packaging materials used for our fastening productswith sustainable packaging, including recyclable/reusable forms by 2030.
In FY2022, we strove to transition from plastic inner packaging materials forfastening products to recycled and biomass materials at many locations aroundthe world. We are promoting a switch to polyethylene containing 100%
recycled materials at YKK Vietnam Co., Ltd. (Nhon Trach Plant), YKK do Brasil
LTDA., and YKK Poland Sp. zo. o., and 30% biomass material at the JAPANCompany (Kurobe Manufacturing Center), YKK (U.K.) Ltd., and other Group
companies. As a result, 17 global locations have switched to sustainable inner
packaging as of the end of FY2022, which equates to a switchover ratio of
27.6% (based on the volume of inner packaging purchases).
Since the beginning of FY2023, YKK has also been moving forward with thetransition from vinyl/plastic packing materials to sustainable materials at eachof our fastening business sites around the world. The company will be unified inaiming to reach our targets by 2030.

– 22 –YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information

Water Resources■ Fundamental Approach
Water is an essential resource for people and all other life on Earth. At the same time, the volume and quality of water available
for use differs between each region. As members of these local communities, each YKK location works to use water in asustainable way in each region by reducing the water intake and ensuring thorough wastewater management.

■ FY2022 Initiatives
Our work to achieve our environmental targets in FY2022 reduced the water intake 14% compared to FY2018. We furthered
the introduction of production and water recycling equipment that uses water more efficiently, which resulted in a water intakeof 10,086,000 tons worldwide in FY2022 (down 11.7% compared to FY2018). Since FY2019, each year we have been using
our proprietary risk check lists to ascertain water risks at every manufacturing location. The results of the FY2022 survey
verified that many locations had made progress with measures to tackle water risks.
To further improve wastewater processing technology at each site, YKK continually implemented wastewater processing
diagnostics and technology guidance through specialists. YKK revised its rules on wastewater management methods withreference to the ZDHC Wastewater Guideline and Higg Index as the wastewater management standards of the garment industry.

Changes in Intake Water (Total Amount)(1,000 t)

Unit: 1,000 t

14,00012,000 11,423
10,00010,798

10,564
8,991

8,000

10,086

Japan

2018

2019

2020

2021

2022

3,656

3,260

2,565

3,096

3,402

6,000

Americas

785

768

574

732

679

4,000

Europe

762

763

655

779

728

ISAMEA

778

856

638

927

1,058

ASEAN

3,399

3,325

2,957

3,126

2,693

China

2,043

1,826

1,602

1,904

1,525

2,000
0
2018 2019 2020 2021 2022 (FY)

Changes in Discharge Water (Total Amount)
Discharge water (Wastewater treatment facility)
Discharge water (Rivers, ocean)

Discharge water (Wastewater treatment facility)(1,000 t)

2018

2019

2020

2021

2022

29

27

20

25

38

Americas

590

645

490

580

499

Europe

400

381

366

446

446

12,00010,000

9,376

8,898

6,000

8,723 8,661
7,555

8,000
5,227 4,982

3,916

4,402 4,481

4,000
2,000
0

Unit: 1,000 t

Japan

ISAMEA

326

317

222

492

678

4,149 3,916 3,639 4,321 4,180

ASEAN

1,012

997

1,112

1,197

1,276

2018 2019 2020 2021 2022 (FY)

China

1,792

1,549

1,429

1,581

1,243

*Revised data between 2018 to 2021 including that
aggregated for office locations

Discharge water (Rivers, ocean)

Unit: 1,000 t

2018

2019

2020

2021

2022

3,422

3,223

2,944

2,901

3,377

Americas

85

115

47

90

92

Europe

212

191

139

150

130

ISAMEA

59

59

47

205

74

ASEAN

1,449

1,394

739

1,056

808

0

0

0

0

0

Japan

China

– 23 –YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information

COLUMN

Wastewater Processing Diagnostics and Technology Guidance atOverseas Operating Companies

Wastewater processing and diagnosis setup
at YKK (Thailand) Co., Ltd.

Headquarters specialists provide wastewater processing diagnosis andtechnical guidance on operations and safety to overseas operating companies
for the purpose of standardizing wastewater processing. We completed theinitial round launched in 2014 in 2019, and are currently undertaking thesecond round of wastewater processing diagnosis and technical guidance.
In FY2022, wastewater processing diagnoses were carried out at a total of
five locations either on site or through video conferences. These wastewater
processing diagnoses mainly confirmed the state of equipment and whether theprocessed water quality satisfied both government as well as company
standards, in addition to strengthening compliance and optimizing processes
based on improvement plans if any were identified. Because the standards andwastewater quality differ in each country, we make sure to understand theequipment and processing methods used at each plant and review the proper
wastewater processing methods and amount of chemical use to propose ways
to reduce water use and CO2. The YKK specialists provide technical guidance tolocal staff based on the wastewater processing diagnosis in an effort toimprove maintenance skills and raise awareness about compliance.
In FY2023, we plan to conduct wastewater processing diagnoses at eightlocations, aiming for no environmental compliance incidents related towastewater processing through these diagnoses.

– 24 –YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information

Chemical Management■ Fundamental Approach
YKK works to maintain manufacturing and product safety through proper understanding and management of chemical
substances related to fastening products and minimize human exposure and environmental impacts by reducing the usage ofchemical substances.
We comply with laws, regulations, and agreements and also take action to mitigate environmental risks, such as by preserving
the local environment including land, ground water, air, and water, and are taking steps to prevent environmental accidents
before they occur.

■ FY2022 Initiatives
We formulated the YKK Restricted Substance List (YKK RSL) to provide safer fastening products in order to better the health of
everyone from employees to consumers as well as reduce the hazardous substances with the potential to do harm to the naturalenvironment.
In FY2022, YKK published the FY2023 version of the YKK RSL and added the AFIRM Restricted Substances List and perand polyfluoroalkyl substances (PFAS) as statutory compliance to the annual revisions of YKK RSL based on customer requests
as well as launched surveys of suppliers.
To ensure every person can work with health and safety, we also have been building and strengthening chemical management
systems, that include assessing the chemical substance hazards and dangers as well as developing specialists. YKK will
promote these management systems in Japan first before rolling them out globally in the future.

COLUMNZDHC Roadmap to Zero Program for Eliminating the Use of Hazardous
Chemical Substances
YKK believes it is important not only to eliminate the use of hazardous chemical substances that have the potential to
be used in the final fastening products but also the hazardous chemical substances with the potential to be used in
production activities or emitted into the environment.
We have introduced the Roadmap to Zero Program that advocates Zero Discharge of Hazardous Chemicals (ZDHC)
as an industrial federation with participants ranging from brands to participants throughout the fashion industry. YKK
is using this program to promote the development of new manufacturing technologies that do not use hazardous
chemical substances and the transition to safer chemical substances in production activities.
In FY2022, we disclosed the level of compliance with the Manufacturing Restricted Substances List (MRSL) for thechemical substances used in our production processes using the ZDHC Gateway, which is a common chemical usage
platform for the fashion industry.
These activities promote a switch to safer chemical substances and work to engage in manufacturing that minimizes
the impacts on the natural environment and people.

– 25 –YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information

Biodiversity■ Fundamental Approach
Ecosystems of many different organisms support the life of people. YKK believes that our most precious stakeholder is natureand strives to become a company that can coexist and prosper together with nature. We promote planting, cleaning, and otherinitiatives that work to enrich these ecosystems, in addition to other efforts that include thoroughly manage chemical
substances to ensure no environmental contamination and to reduce the impacts on the environment.

■ FY2022 Initiatives
As an international organization joining the 15th meeting of the Conference of the Parties to the UN Convention on Biological
Diversity (COP 15), Business for Nature evaluates the impacts and dependency companies have on biodiversity. YKK has signed
a corporate statement committing to mandatory disclosure through 2030.
We have continued to conduct tree planting and clean-up activities worldwide. Twelve locations conducted tree planting
efforts, and four locations took part in clean-up activities. Inside the Kurobe Manufacturing Center in particular, we are creating
a forest and a waterside with the aim of achieving YKK founder Tadao Yoshida’s ideal of a “factory in a forest.” As a policy toachieve the 30 by 30 international biodiversity target, we participated in the “For Coexistence of People and Nature” website
proof-of-concept program certified by the Ministry of the Environment. As a result, YKK Center Park’s Furusato-no-Mori(Hometown Forest) reached the same level of standards as the certification.

Main Ecosystem Conservation Activities (FY2022)
Activity details

Activity location
Around the factory

Number of locations
where implemented

Objective

11

Tree-planting activities

Absorption of GHGs by plants and maintenance of the ecosystem
Community (parks, etc.)

1

Around the factory3

Maintenance of the ecosystem through removal of waste

Neighboring waterside

1

Maintenance of the aquatic ecosystem through removal of waste

Clean-up activities

COLUMN

Promoting Environmental Education and Conservation Activities at
the P.T. YKK Zipper Indonesia Cibitung Plant

Trash clean-up activity

The P.T. YKK Zipper Indonesia Cibitung Plant holds an environmental
conservation event for local elementary school children once each year. This
event explains the harm trash does to the health of the local people and the rare
Indonesian ecosystem. Next, all the participants work together in a local clean-up
effort to protect this ecosystem, which creates an opportunity for the children toexperience and think about what they can do to protect their own health.
Indonesia is a country with a diverse ecosystem that includes Komodo
dragons and Rafflesia. YKK recognizes the value of this precious Indonesian
ecosystem. We hope this clean-up activity will ingrain a habit in these childrenthat prevents littering in rivers and along roadsides to protect their own healthand the health of their families.

– 26 –YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information

Environmental Contribution Activities■ Fundamental Approach
Under founder Tadao Yoshida’s philosophy of “becoming part of the local community,” YKK keeps in mind achieving prosperity
together with the community, and places value on the connection with the local community as a member of society. Eachbusiness site conducts cleaning activities and other environmental contribution activities based on that thinking. In addition, we
believe that teaching the children who are the next generation is crucial to solving environmental issues, so we hostenvironmental learning at many business sites.

■ FY2022 Initiatives
As an environmental contribution activity aiming to coexist with the community, YKK takes part in a wide range of activities. This
includes clean-up activities around our plants at locations around the world, environmental education for the local children, andparticipation in other local events.
As one example in Japan, because we believe that it is important to consider the environment not only at work but also athome, we hosted an event to implement efforts to reduce CO2 emissions at home in an aim to cultivate an awareness of theenvironment in each employee. YKK Romania S.R.L provided environmental education to students about reducing use of plastics
and the importance of recycling.

COLUMN

Participation in Earth Hour

Before switching off the lights

After switching off the lights

YKK logo sign and indoor lights turned off

Before switching off the lights

On March 25, 2023, YKK locations around the world
participated in Earth Hour 2023. Earth Hour is an activity foreveryone to switch off the lights on the same day and time for anhour around the world. As the world’s largest initiative of thiskind, the environmental action held by the World Wildlife Funddemonstrates the will of the people to prevent global warming
and conserve biodiversity.
This is the fifth time YKK has participated in Earth Hour since2019. Every year, the number of YKK locations participating
grows. 50 locations participated this year, turning off logo signs,
indoor lighting, and outdoor lights. At many of these locations, theemployees join the company in this activity by turning off theirlights at home, which provided a good time for everyone to help
prevent climate change and think about environmental issues.
We will aim to improve the environmental awareness of eachand every employee with the hope of contributing to asustainable society.

After switching off the lights

Lights on the premise turned off– 27 –YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information[Reference] Fastening Business and Other Businesses Related to Business Operations (Japan)

Environmental impact mass-balance (FY2022 results)

INPUT
Electric power (electric powerpurchased from power companies)
106.45 million kWh

YKK Group

OUTPUTCO2

37,000 t-CO2

Estimated amount offluorocarbons leaked 260.8 t-CO2
Fuel (heavy fuel oil, kerosene, gas,light oil, gasoline)
Energy equivalent: 164 TJ

Water (not including reused water)
3.40 million t

Chemical substances(PRTR substances)

Raw materials(metal, resin, etc.)

NOx

7.06 tSOx

3.04 tWastewater

BOD
498.1 t32,157 t– 28 –

3.41 million t

9.66 tAmount of waste
disposed

7,425.5 t

Amount of waste
recycled(recycling rate)

7,414.9 t
99.9%YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information■ Violations of environmental laws and regulations
We have not had any administrative actions or fines imposed related to environmental laws and regulations in the past five years.

YKK Corporation and YKK Snap Fasteners (YSF) Co., Ltd.
status of compliance (results)
Air Pollution Control Act: Exhaust gas (Production sites in Japan, FY2022 results)
Soot and dust (g/Nm3)
Equipment

Boilers

National
emissionsstandard

Municipal
agreedvalue

YKK
Corporation

0.30

－

YSF

－

－

Plant

Nitrogen oxide (ppm)(Reference)
HighestNational
Voluntary
value
Assessment
emissionsemissionmeasured
standard
standard
in FY2022
Below 0.01 Acceptable

0.05

－

Municipal
agreed
value

180

－

(Reference)
HighestVoluntary
value
Assessment
emissions
measured
standard
in FY2022

－

83

－

－

Acceptable－

Water Pollution Prevention Act: Wastewater (Production sites in Japan, FY2022 results)
Plant

National
emissionsstandard

YKK Corporation

5.8～8.6*1

5.8～8.6*1

5.8～8.6

YSF

－*2

－

5.0～9.0*2

YKK Corporation

120*1

15

15

YSF

－

－

YKK Corporation

－

－

Item

pH

BOD

COD

Prefectural water
Municipal agreed
emissionsvalue
standard

Highest value
measured in
FY2022Min.: 6.6
Max.: 7.5
Min.: 6.2
Max.: 7.0

80

Unit: mg/l (except pH)
Assessment(Reference) Voluntary
management standard

Acceptable

6.0～8.4

Acceptable

5.8～8.8

4.9

Acceptable

5

600

112.0

Acceptable

200

－

6.7

Acceptable

12

YSF

－

－

－

－

Acceptable－YKK Corporation

150

90

50

2.0

Acceptable

10

YSF

－

－

600

59.0

Acceptable120

YKK Corporation

5

－

3

Below 0.5

Acceptable

1

YSF

－

－

35

22.4

Acceptable

18

CyanideYKK Corporation

1

－

0.1

0.02

Acceptable

0.02

HexavalentchromiumcompoundYKK Corporation

2

－

0.1

Below 0.02

Acceptable

0.03

Suspended
solidsOil*1 Standards for discharge into rivers*2 Discharge into sewers

Water Pollution Prevention Act: Ground water (Production sites in Japan, FY2022 results)
Unit

Environmental
standard*

Measurement resultsfor FY2022

Assessment

Dichloromethane

mg/l

0.02 or less

Below 0.002

Acceptable

Carbon tetrachloride

mg/l

0.002 or less

Below 0.0002

Acceptable

1,1-Dichloroethylene

mg/l

0.1 or less

Below 0.002

AcceptableCis-1,2-Dichloroethylene

mg/l

0.04 or less

Below 0.004

Acceptable

1,1,1-Trichloroethane

mg/l

1 or less

Below 0.0005

Acceptable

Trichloroethylene

mg/l

0.01 or less

Below 0.002

Acceptable

Tetrachloroethylene

mg/l

0.01 or less

Below 0.0005

Acceptable

Cadmium

mg/l

0.003 or less

Below 0.001

Acceptable

Cyanidemg/l

Not detected

Below 0.1

Acceptable

Lead

mg/l

0.01 or less

Below 0.005

Acceptable

Hexavalent chromium

mg/l

0.05 or less

Below 0.005

Acceptable

Selenium

mg/l

0.01 or less

Below 0.002

Acceptable

Fluorine

mg/l

0.8 or less

0.2

Acceptable

Boron

mg/l

1 or less

Below 0.1

Acceptable

Substance

Volatile organic compounds

Heavy metals*Environmental standard: Keeping the amount below this standard is desirable for protection of human health and preservation of the living environment.

– 29 –YKK Philosophy & Sustainability

Environmental

SocialGovernance

Financial Information

Noise Regulation Act: Noise (Production sites in Japan, FY2022 results)
Plant

Type

Unit: db

Municipal agreement
Highest value
Prefectural standard
on pollution control measured in FY2022

Assessment(Reference)
Voluntary standards

YKK Corporation Daytime (8:00 A.M. to 7:00 P.M.)

70

－

64

Acceptable

60

Morning (6:00 A.M. to 8:00 A.M.)
YKK Corporation
Evening (7:00 P.M. to 10:00 P.M.)

65

65

57

Acceptable55

YKK Corporation Late night (10:00 P.M. to 6:00 A.M.)

63

63

56

Acceptable

50

YSF

Daytime (8:00 A.M. to 7:00 P.M.)

70

70

67

Acceptable

70

YSF

Morning (6:00 A.M. to 8:00 A.M.)
Evening (7:00 P.M. to 10:00 P.M.)

65

65

62

Acceptable

65

YSF

Late night (10:00 P.M. to 6:00 A.M.)

60

60

－

Acceptable

60

PRTR method: PRTR calculations (Production sites in Japan, FY2022 results)

Unit: tTransfer amountEmissions
Transfer
Volumeamount toSoil
Landfill
Waste
handled Atmospheric Public water
Sewageemissionsemissions emissions volume sewer system materials

Substance
numberSubstance

1

Zinc compounds (water-soluble)

1.81 Below 0.01

0.00

－

－

0.00

0.00

－

1.80

53

Ethylbenzene

2.69

2.60

0.00

－

－

0.00

0.04

－

0.00

71

Ferric chloride

10.00

0.00

0.00

－

－

10.00

0.00

－

0.00

80

Xylene

31.92

5.30

0.00

－

－

2.19

0.36

－

2.54

144

Inorganic cyanide compounds

17.34

0.03

0.02

－

－

3.44

13.70

－

0.14

232

N,N-dimethylformamide

158.97148.80

0.00

－

－

10.18

0.00

－

0.00

296

1,2,4-Trimethylbenzene

10.05

3.47

0.00

－

－

2.99

0.00

－

3.57

300

Toluene

82.60

73.34

0.00

－

－

5.15

1.79

－

0.00

308

Nickel

48.93

0.01

0.00

－

－

0.00

4.57

－

44.35

395

Water-soluble salts ofperoxydisulfuric acid

3.37

0.00

0.00

－

－

3.37

0.00

－

0.00

412

Manganese and manganesecompounds

105.36

0.11

0.00

－

－

0.00

0.00

－

97.45

438

Methylnaphthalene

25.06

0.00

0.00

－

－

0.00

0.00

－

25.06

Consumption*Aggregated substances of which we handle 1 t or more (0.5 t or more per year for Class1 Designated Chemical Substances) per year at our domestic production locations*Consumption: The amount consumed as raw materials, the amount contained in products, or the amount recycled by being sold*Transformed amount: The amount that has been transformed into other substances by incineration, reactive processing, etc.

Changes in Emissions of PRTR Substances (Production sites in Japan)
（t）

500

Emissions into the public water system
Emissions into the air

400

367
315

300

270

200

234

177

100
0

2018

2019

2020

2021

2022 (FY)– 30 –