Yokohama Rubber CSR Report 2020

C a r i n g f o r t h e Fu t u r eCorporate Philosophy

Basic Philosophy
To enrich people’s lives
and contribute to their greater
happiness and well-being by
devoting our wholehearted energies
and advanced technology to the creationof 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

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

02

Business and Main Products of
Yokohama Rubber
Message from the President
Risks and Opportunities Presented by
Yokohama Rubber’s Sustainability-focused
Management

01

Corporate Governance09

Products

11

The Earth1303

People15

05

Community

17

Topics / Third-party Opinion

19

Primary Initiative Progress Report /Yokohama Rubber Group at a Glance

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 theconfidence of
our neighbors.

Corporate GovernanceLay a solid foundation for
fulfilling social expectations.

Yokohama Rubber and the SDGs
The Yokohama Rubber Group is implementing CSR-aware management that involves
the integrated promotion of business expansion and CSR, based on a medium- andlong-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 allof our stakeholders to strive to realize an enhancement of the company’s social value
and corporate value through the SDGs.
*Adopted at the United Nations Sustainable Development Summit in September 2015, the SDGs comprise 17
sustainable development goals and 169 individual targets.

Editorial Policy

Available Online Content

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 Grand Design 2020 (GD2020)
medium-term management plan. To this end, we are working toaddress 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.

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, 2019 to December 31, 2019
Period covered(Information includes some activities whichby the Report: were conducted in or after January 2020)02Business and Main Products of Yokohama Rubber
Others 8.6 billion yen (1.3%)

The Yokohama Rubber Group aims to achieve its basic philosophy “to enrich people’s lives andcontribute to their greater happiness and well-being by devoting our wholehearted energies andadvanced technology to the creation of beneficial products.” We will communicate joy to ourstakeholders and gain their trust through business growth strategies that evoke a distinctive identity
unique to Yokohama Rubber. The strategies and initiatives in each field are as follows.
Consumer
Tires

Through quality and performance to “Help consumers get more out of motoring
lifestyles” with a focus on premium car tires, winter tires, and hobby tires, wedeliver safer and more enjoyable driving.

ATG

70.8

billion yen(10.9%)
MB

119.3

billion yen(18.3%)We have expanded off-highway tires and truck and bus tires to contribute to theCommercial
sustainability of industries and improvements in mass transport efficiency.

Sales revenue bybusiness(FY2019)

Tires
MB(Multiple Business)

Operations
Alliance
Tire Group
(ATG)

Tires

451.7

billion yen(69.4%)

We aim to establish a firm position in the automotive components business andmarine products business that will lead to the next generation by exploiting
compounding and compositing technologies that we are strong in.
The Alliance Tire Group (ATG) has been providing tires for use on agricultural
machinery (such as tractors, etc.) and forestry machinery for over 60 years, underthe Alliance brand and other brands.

Consumer Tires[Principal products] Production and sales of tires, tire tubes, aluminum alloy wheels and other peripheral products for passenger
cars and for motor sports.
▶ BluEarth-4S AW21 all-season tires for passenger cars

The BluEarth-4S AW21 all-season tire can be used in a wide range of road conditions all year round, including wetor dry road surfaces, and in snowy weather, regardless of the temperature. Besides providing outstanding
performance on snow and on wet roads, it also offers superior dry road performance and first-class wear
resistance. As the BluEarth-4S AW21 can cope with sudden snowfalls, it can be used year-round, with no need to
implement seasonal tire changes. The Divergent V-grooves and Crossing Narrow Grooves, which make use of
newly-developed directional tread pattern technology, ensure both good water expulsion performance on wet
roads and also superior performance in snowy conditions. In addition, the tire’s wide tread and large shoulder
blocks provide a large tread contact area, making for enhanced handling on dry roads. The BluEarth-4S AW21 ismade using a silica end-locked polymer compound, which improves performance both on snow and on wet roads.
The tire sidewalls bear the “Snowflake Mark” symbol, confirming that the tire conforms to the severe-weather snow
tire requirements specified by international standards, allowing the tire to be used during periods when special
winter tires are required by law.*1*1 Please note that in regions where tire chains are compulsory in winter for all vehicles, chains must be fitted to all tires (including studless tires).

▶ BluEarth-XT AE61 summer tires for crossover sports utility vehicles (CSUVs)

The BluEarth-XT AE61 is a summer tire specially designed for use with crossover sports utility vehicles (CSUVs). It
delivers the sharp handling performance that drivers need on city streets and highways, as well as a quiet ride that
contributes to comfort inside the car interior. In addition, the tire’s resistance to uneven wear gives it a long useful
lifespan. Within Japan, all sizes of the BluEarth-XT AE61 tire have achieved the rare distinction of receiving both an“a” grade, the highest possible rating, for wet-grip performance, and an “A” grade for rolling resistance. These
strengths provide drivers with a greater sense of safety when driving in the rain, while also contributing to thevehicle’s low fuel consumption. The tire profile features a smooth road contact surface shape and a mound profilethat evenly distributes contact pressure, with a newly-developed asymmetric tread pattern design that provides
high rigidity from the shoulder to the center rib, contributing to enhanced handling performance and resistance touneven wear. Four straight grooves combined with inside narrow grooves contribute to the tire’s outstanding
wet-grip performance. The tread pattern is designed to suppress air-pumping noise, which makes for a superior
level of quietness, while the compound used for the tire is a nano-blend rubber that combines silica and polymer
to enhance wet-grip performance and fuel efficiency.
▶ BluEarth-Van RY55 – The first BluEarth tire specially designed for vans, with outstanding
wear resistance

The BluEarth-Van RY55 provides enhanced wear resistance, a key requirement for van tires, along with superb
performance in wet conditions. It uses the newly-developed Extra Powerful Profile, a specially designed tread
pattern, and also features the Aggressive Shoulder, with a combination of deep lugs and sipes on the tire shoulder,making for enhanced wear resistance and resistance to uneven wear. The compound used for the BluEarth-Van
RY55 features Triple polymer for enhanced durability, and the tire also incorporates a specially-developed tire
profile that provides contact shape optimization, while also reducing uneven wear. In addition, the triangularprofile and wide center grooves contribute to superior rigidity and improved water expulsion. Thanks to these
special features, by comparison with the JOB RY52, a conventional van tire, the BluEarth-Van RY55 realizes a 20%
improvement in wear resistance and a 6% improvement in wet handling.

03

Commercial Tires[Principal products] Production and sales of tires for trucks and buses, and for construction equipment.
▶ 902L all-season ultra-wide-base (UWB) tires

Ultra-wide-base (UWB) tires are special, extra-wide tires that make it possible to replace dual wheels (that use a setof two tires) with a single wheel and tire. Switching over to a single wheel reduces the burden of tire replacementand day-to-day inspection tasks, and because the single wheel and tire are lighter, the truck can carry up to as
much as around 170kg of extra load. The 902L uses Yokohama Rubber’s unique, specially-developed SpiraLoop®
belt structure, which has a steel belt layer running parallel to the direction of rotation of the tire. This belt structure
helps to reduce shoulder area expansion and belt distortion when the vehicle is moving, and also provides
outstanding resistance to uneven wear and improved durability, thereby contributing to increased tire lifespan.
The new tread pattern also makes for improved traction performance, reduces rolling resistance, and improveswater expulsion and handling. Tire models that use SpiraLoop® have already been introduced in the North
American market, and have attracted a lot of positive comment.
▶ RR42 off-the-road radial tires for port facility vehicles

The RR42 is a newly-developed radial tire designed for use on straddle carriers, which are vehicles used to transport
containers in port facilities. A brand-new tread pattern and optimized profile ensure long, even wear and reduced
vibration and lateral deflection. By comparison with conventional tire products, the RR42 offers enhanced wear
resistance and improved handling, thereby contributing to reduced resource consumption and greater comfort
and safety for customers.

MB (Multiple Business)[Principal products] Incorporating Yokohama Rubber’s hose and couplings, industrial materials, Hamatite (sealants and adhesives) andaerospace products businesses, the MB business unit undertakes production and sales of high-pressure hoses,
couplings, conveyor belts, fenders, marine hoses, adhesives, sealants, aircraft water tanks and other products.

▶ Pneumatic fenders – Helping to drive the growth of marine industries

Yokohama Rubber holds the highest global market share for pneumatic fenders, which are used to prevent collision
damage when ships come alongside one another or when they berth at a pier, whether in port or at sea. Fenders
comprise three layers: an outer rubber layer, a reinforcing tire cord layer, and an inner rubber layer; the overall
thickness is in the range of 2 – 3 cm. To date, Yokohama Rubber has supplied more than 40,000 fenders, which are in
use all over the world. Responding to the trend for the ships that carry resources across the globe to get steadily
bigger, Yokohama Rubber has become the first company in the world to supply mega-sized fenders (which are 6 m
in diameter and 11.5 m long). To contribute towards the safety of marine transportation, Yokohama Rubber isworking on the development of new marine products that use sensor functionality to provide enhanced value.
▶ ECOTEX energy-saving conveyor belt

ECOTEX was used in the longest conveyor line in Japan in recognition of its energy
savings and high durability. The viscoelasticity of the bottom facing cover rubberthat comes into contact with the roller has been optimized to reduce theresistance when going over the roller and contribute to a reduction in conveyor
power consumption. A significant reduction in power consumption of at least 50%
compared to before has been achieved.

Belt advancing

General cover rubber direction

Belt advancing

ECOTEX cover rubber directionHighresistanceLowresistanceBelt▶
Roller▶

Belt▶

ATG (Alliance Tire Group K.K.)

Roller▶

[Principal products] Production and sales of tires for agricultural, industrial, construction, and forestry machinery.
▶ Alliance 398 MPT tires for agricultural machinery

The Alliance 398 MPT is compatible for use with a central tire inflation system*2 that automatically adjusts tirepressure to the level suitable for driving in the field or on a paved road. In addition, the tires’ all-steel radial flotation
construction*3 enables the Alliance 398 MPT to deliver excellent performance on and off the road, with perfecttraction, high load capacity, and soil protection when used on the farm and stable handling and a quiet andcomfortable ride at high speeds when used on paved roads. The tire is the world’s first*4 agricultural tire capable ofdelivering speeds up to 100km/hr on paved roads. This duality enables farmers to load their crops directly in thefield and transport them without the need to transfer to another vehicle, eliminating the need for grain carts andother equipment and contributing to greater work efficiency. This tire won an Innovation Award Silver Medal at the2019 AGRITECHNICA exhibition in Hannover, Germany, the world’s leading trade fair for agricultural machinery.
*2 A system that automatically adjusts tire inflation levels. On the farm, the air pressure is lowered so as to increase the surface contact area and disperse the load, thereby lightening theburden on the soil. On paved roads, tire pressure is increased to facilitate smooth rides at higher speeds. The automated system enables the driver to increase or reduce the tires’ airpressure without disembark from the truck cab.
*3 Among steel radial tire structures for tires used on agricultural machinery, this structure is known for excellent floatation (buoyancy) performance that lightens the burden on soil found on
nonpaved road surfaces, including muddy roads.
*4 An in-company investigation.

04

Message from the President

We will pursue thesustainability ofboth society andcompanies.
Masataka Yamaishi
President and Representative
Member of the Board

For a world with an uncertain future
As you all know, the outbreak of the new coronavirus (COVID-19)
has prevented us from doing business as normally would have inthe past since the beginning of 2020. Yokohama Rubber alsoprioritized the safety of its employees and took measures such as
restricting movement in and out of Japan and shutting down its
plants in accordance with governmental directives. These
measures began in January 2020, when the Yokohama RubberGroup announced its policy of “prioritizing the health and safety of
employees, their families and business partners” and “minimizing
the impact on our business and operations” at the New
Coronavirus Countermeasures Headquarters and Risk
Management Committee when we received information about
these directives. We have established IT environments for remote
work (telecommuting) and web conferencing to avoid the Three
Cs (Crowded places, Close-contact settings, and Confined andenclosed spaces), revised systems to include staggered working
hours and hourly leave, issued guidelines for employee behavior,and made revisions as appropriate in response to changing
circumstances. On top of that, I believe that damage and infections
have been minimized by every department and location taking all
possible measures to ensure efficient operations.
However, as we look around the world, there is still a lot of05

uncertainty about the convergence of infections, and economic
activity at home and abroad is expected to continue to fluctuatesignificantly.
Tires are essential goods, and we have a mission to provide
indispensable products to society. In addition, we will fulfill our
supply responsibilities as a supplier of conveyor beltings, marine
hoses and many other products that support the infrastructureof society. For this reason, we will strengthen our organizationthat allows us to provide flexible and prompt production andservices while assessing the costs that are essential to ourbusiness operations.

Unique CSR management to survive
uncertain times
Fiscal 2019 marks the end of the second year of our three-year
medium-term management plan, Grand Design 2020 (GD2020),
which was launched in 2018. It calls for redefining Yokohama
Rubber’s strengths, fortifying our business foundation throughgrowth strategies in each individual business with strengthened
original approaches, and preparing for further growth in the
coming decade of the 2020s. In fiscal 2019, we continued tovigorously promote the growth strategies of each of ourbusinesses to give momentum toward the final year of 2020,

while also working to fortify our business foundation throughESG practices* and workstyle reforms.
First, each business worked to implement their growthstrategies. In the consumer tires business, we expanded theinstallation of mainly high-inch, high-performance tires on various
premium cars as part of our Premium Car Strategy. In addition, we
began selling all-season tires in Japan under our Winter Tire
Strategy. In North America, we enthusiastically launched new
products, including studless tires for both passenger cars andSUVs. Our Hobby Tire Strategy promotes the joy of driving and has
demonstrated our strong presence in the global market, such as
by sweeping the U.S. SEMA Show’s “Best New Tire” awards.
In the tires business, the Alliance Tire Group’s (ATG) productlineup for off-highway tires (OHT), such as those for agriculturaland forestry machinery-use, have been recognized for theirsuperior buoyancy performance that does not damage
agricultural and forestry land and does not impair plant growth,
as well as for their high on-road performance, and won the silver
medal the world’s largest agricultural machinery exhibition. We
are expanding the production of ultra-flat single tires for trucks
and buses, which contribute to lower maintenance and higher
load capacity, as one of the pillars of our growth.
In MB, we have begun delivering the world’s largest
pneumatic fenders, contributing to the safety of marinetransport with the aim of becoming the world’s number one
company in the marine industry.
To fortify our business foundation, we are working to strengthen
our financial position, revitalize our corporate culture, and upgraderisk management. ESG activities, which have become increasingly
important in recent years, include expanding the use of renewableenergy, promoting the development of products that contribute to
the environment, supporting farms and surveying labor conditions
to achieve sustainable natural rubber procurement, andappointing independent outside directors and foreign directors.
We are also reforming the way our employees work with a focus on“utilizing diverse human resources” and “supporting work-lifebalance.” The Company’s ESG activities have been recognizedglobally, including inclusion in the international environmental
NPO CDP’s Climate Change A List in 2019, and inclusion in the
FTSE4Good Index Series, a global index of ESG investments, for 15
straight years.
However, there are significant changes in the planet andsociety, including the mild winter and occurrence of natural
disasters in 2019, and COVID-19 in 2020, and we need to beproperly aware of risks and opportunities. In addition, we will
accurately assess the needs of the regions in which we operate,and each base will work to strengthen its business continuity
plan (BCP), including disaster prevention and safety. Throughnew ways of working, I would like to collaborate as a team andincrease motivation while clarifying our vision and the mission
and actions of each of us to achieve it.

To become a company indispensable tocustomers around the world

Company-wide safety and disaster prevention meeting (2019)subside, we may be unable to return to the same life and society
as before. This is a change in values that calls for “new ways ofworking and living that give many people a sense of fulfillment
and satisfaction, rather than the old way of living with its many
problems,” and customers’ purchasing behavior will alsochange.
I have been talking about “Business Creation and Business
Maintenance” since I became president. Promoting internal
improvements (business maintenance) and growth strategies(business creation) simultaneously will lead to solutions forsocial, environmental and business sustainability issues.
We are committed to protecting jobs and ensuring the healthand safety of our employees, their families and the people
around them, while striving for sustainable economic
development in line with these changing values.
Specifically, in order for rubber plantations to produce natural
rubber sustainably and for us to have a stable supply, we will
work with a natural rubber public corporation in Thailand andour suppliers to further promote study meetings, fertilizer
provision, and agroforestry farming methods. In addition, we
will utilize the YOKOHAMA Magokoro Fund to collaborate withmany NPOs and contribute to solving related issues.
In this way, we will work together with the Sustainable
Development Goals (SDGs) aiming to resolve international social
issues, the United Nations Global Compact (UN-GC) and theWorld Business Council (WBCSD) to ask what we should
prioritize in solving various social issues.
And we will demonstrate our future initiatives post-GD2020.
To ensure that our business activities contribute to the SDGs,
we have created a business vision that addresses the risks andopportunities in the world, such as the climate crisis,
deforestation, agriculture and food, and human rights in the
supply chain, as well as new social opportunities, throughcollaborating and working together with our stakeholders.
Finally, we re-confirm once again that “safety, quality andcompliance” are the prerequisites for all of our activities, and theentire company will work together to thoroughly prevent theoccurrence and spread of disasters and infectious diseases. I
would like to ask for the cooperation of all of our stakeholders to
overcome these challenges together.
*ESG activities: In addition to financial activities, initiatives for long-term
growth in terms of environment, social and governanceWe must keep in mind that even after the effects of COVID-19

06

Risks and Opportunities Presented by Yokohama Rubber’s Sustainability-focused Management
While environmental destruction and social issues pose significant risks to business continuity, working to solve social issues can also leadto new business opportunities. Yokohama Rubber is aware of the risks and opportunities in sustainability and wishes to contribute to therichness of the earth and society through our business activities.

Caring for the future/Core issues addressed by ISO 26000
Issues to be recognizedCorporate
governance●Organizational governance

Products●Consumer issues

The Earth●The Environment

People●Human rights●Labor practices

Community●Fair operating practices●Community involvementand development

07●Maintenance and strengthening offoundation for proper organizational
governance●Sustainable profitability and businessgrowth (transformation)●Effectiveness and diversity of the board of
directors and organization●Dialogue and information disclosure

Risks
Compliance with laws and regulations, and responding tosystemic changes
Social demands to strengthen corporate governance
Violations of antitrust laws, bribery, price cartels, export
controls, etc.
Protection of intellectual property rights
Suspension of product support or procurement due todisasters or infectious diseases
Unauthorized use and theft of data, cyber-attacks, andsuspension of information infrastructure
Economic and financial downturns, and declines in funding
and investment returns, etc.

●Customer health and safety●Shift to CASE in automotive industry●Provision of products that meetenvironmental performance and customer
needs●Protection of personal information●Maintenance of quality to the satisfaction of
our customers●High environmental impact when using
products●Risk of accidents and lawsuits due to poor product safety,
recalls and damage to brand value●Decrease in demand for products due to economic
fluctuations and other factors●Decrease in demand for winter tires due to decrease insnowfall●Sharp rise in resource prices●Climate change problems●Changes in the natural environment of our
production bases and suppliers●Impact of operations on the ecosystem●Continuation of sustainable operations inJapan and abroad●Dependence on natural capital such as
water and natural rubber●Switch from fossil resources to sustainable
resources●Environmental laws and regulations and litigation risks●Impact on climate change and air pollution, and increased
energy costs●Environmental impact of waste and emissions, and community
opposition to operations●Depletion and shortage of water resources●Prevention of complicity in child and forcedlabor in the company and suppliers●Improvement of occupational health andsafety and prevention of infectious diseases●Strengthening education and training●Fostering an active work environment withdiversity and equal opportunities●Losses and business impact due to occupational accidents,
natural disasters, infectious diseases, etc.
●Work stoppages due to labor unrest, and lower productivity
due to reduced satisfaction●Environmental impact of suppliers (local
pollution, negative impact on local residents,
risk of shutting down supplier operations)●Social impacts on suppliers (disasters,
human rights violations, illicit activities andconflict minerals)●Environmental impact on areas where weare expanding our business, and thenegative impact when withdrawing●Understanding the culture and customs ofareas where we are expanding our business,and creating economic benefits for those areas●Impact on investments, etc. (compliance with local laws andcustoms, mainly in Asia)●Conflict minerals and risk of human rights violations

Opportunities
Strengthening the risk management system

Yokohama Rubber’s Initiatives
Strengthening the governance system
Strengthening business continuity plans (BCPs)
Developing systems to promote compliance
Strengthening financial position and transparency

Website Page
P.9-10
Corporate GovernanceWEB
Organizational
Governance●Manufacturing and selling tires with high safety, quality, andenvironmental performance●Promotion of the YOKOHAMA Intelligent Tire Concept●Development of all-season tire and sensor technology●Tire maintenance through service cars and remote service●Development of biomass rubber and promotion of retread tires●Manufacturing and selling tires for industrial and construction
vehicles that support social infrastructure●Manufacturing and selling tires for agriculture and forestry machinery that
contribute to sustainable production in the agriculture and forestry industry●Manufacturing and selling MB products that contribute togreenhouse gas reductions

P.11-12●Reduction of energy costs by improving manufacturing
process efficiency●Reduction of resource price fluctuation risks andimprovements in operational efficiency through reuse
and recycling●Reduction of environmental protection costs●Reduction of environmental lawsuit and regulation
penalty risks●Sustainable natural rubber procurement●Coexistence and shared prosperity with agroforestry farming
method promotion and rubber farmers●Continuation of 100% environmentally-friendly products●Environmental impact reductions through business activities●Promotion of Yokohama Forever Forest and biodiversity activities●Promotion of cogeneration and renewable energy●Effective use of water resources (rainwater harvesting in India andThailand, etc.)

P.13-14●Workstyle reform emphasizing diversity and lifestyles●Securing excellent human resources and sustaining
employment through health management●Growth through human resources development andworkplaces without discrimination●Establishing traceability for sustainable natural rubber
procurement●Implementation of procurement in accordance with CSR
procurement standards●Strengthening training by expanding the training system●Strengthening activities in the Diversity Promotion Taskforce●Expanding system for flexible workstyles●Strengthening of efforts in health management●Strengthening of safety and disaster preparedness initiatives●Farmer survey in Thailand, etc.

P.15-16●Implementation of procurement in accordance with CSR
procurement standards●Support for healthcare, education, etc. in local communities●Disaster support activities●Collaboration with the YOKOHAMA Magokoro Fund and NPOs
●Creation of employment in regions where our business is developed

P.17-18●New business opportunities by adapting to CASE
●Early response to changes in demand and tighter
regulations●Improvements in competitiveness and profitability
through reuse and recycling●Improvement of the environmental and social impact of
suppliers and improving their reputation by promoting
CSR procurement●Job creation and economic development in regions where
we operate●Change in mobility in regions with an aging and shrinking
population●Change in mobility services in the new normal

Products
WEB
Consumer Issues

The EarthWEB
The Environment

PeopleWEB
Human Rights
Labor Practices

Community
WEB
Fair Operating Practices
Community

08

Corporate Governance

Implementing Disaster Prevention
Measures, and Taking Appropriate
Action in Response to a Wide Rangeof Risks

Significance of
our initiatives

Getting employees into the habit of implementing disaster
scenario simulations

Japan and the other countries and regions where Yokohama Rubber operates areconstantly exposed to the threat of major natural disasters such as mega-typhoons,
record-breaking torrential rainfall, major earthquakes, etc. We systematically implement
measures that include training to verify that systems for confirming employee safety inthe event of a disaster are operating effectively, stockpiling of food, drink and otheremergency supplies, the implementation of Fire Prevention audit and the compiling ofDisaster Prevention manuals, etc. We believe that it is very important for every individual
employee to maintain Disaster Prevention awareness, and to implement simulations ofpossible disaster scenarios.

Current status of Disaster Prevention
measuresNo. of
Fire Prevention audits performed

22 sites

Rate of reduction in the incidence ofsmall fires (year-on-year)

40% reduction

Framework for Disaster Prevention measure
implementation
Within Japan, it is estimated that there is a 70% probability of alarge-scale natural disaster – such as a major earthquake with its
epicenter directly beneath Tokyo, or a Nankai Troughmegathrust earthquake – occurring within the next 30 years. It isalso very common for Yokohama Rubber’s production sites –whether located in or outside Japan – to be affected by natural
disasters such as earthquakes, typhoons, tornados and flooding.
In order to be able to respond rapidly in the event of an
emergency, Yokohama Rubber has put in place the systems
needed to enable smooth, systematic operation of the disaster
response headquarters in the event of a natural disaster occurring.

Formulation of Fire Prevention Guidelines
Yokohama Rubber has formulated Fire Prevention Guidelines toserve as a “standard” outlining the appropriate stance, with theaim of realizing verification and improvement of fire prevention
activities within the Yokohama Rubber Group and ensuring that,in the event of a fire occurring, swift action will be taken toprevent it from spreading.
Yokohama Rubber is working to strengthen its fire prevention
framework by taking these Guidelines as the foundation for theongoing implementation of fire prevention audits at eachproduction site, and for a PDCA (Plan-Do-Check-Action) cycle tobring about improvements.

09

Formulation of Disaster Prevention Guidelines
Yokohama Rubber has formulated Disaster Prevention Guidelines,
which prioritize the safeguarding of human life, to serve as a codeof conduct for employees when responding to emergencies suchas natural disasters (including earthquakes, typhoons, flooding,severe snowstorms, landslides, etc.), epidemics, etc., and tooutline the preparations that the company must take in relation
to such disasters. The aim has been to ensure that the Guidelines
are full of useful, practical content, divided into three main
sections: “Everyday Preparedness,” “Disaster Response Systems,”
and “Initial Response in an Emergency (Code of Conduct).” In the
future, we will continue to maintain and adjust the Disaster
Prevention framework that we have put in place, working to build
systems that will continue to operate effectively in the future.
Taking this as the foundation, moving forward we will be
formulating business continuity planning (BCP) strategies toaddress a wide range of different types of risk.

Disaster Response Pocket Manual
When a disaster occurs, what action should be taken in orderto safeguard human life? The Disaster Response Pocket
Manual clearly outlines what action individuals should take,and what action they should take as employees, in response
to a disaster.
First, for each individual, the overriding priority is tosafeguard your own life. In an emergency, you must stay calm
and think first of all about what you need to do to protect
yourself. In order to let other people know that you are safeand unharmed, it is very important to decide in advance withfamily and friends how you can notify each other that you aresafe. In addition, in order to maintain the business activities
that underpin daily life, it is also vitally important forindividuals to stay calm and collected in their roles as
employees. The Disaster Response Pocket Manual outlines
what employees should do if they are caught up in a disaster
while commuting to or from work, or while they are at work.

Disaster Response Pocket Manual
Basic actions in the event ofan emergency caused by an earthquake etc.
Ensuring yourphysical safety

Stay safe by sheltering under a desk or table,
etc.

Making sure you
have a way out

Check where the emergency exits are
Don’t use elevators

Fire management

If a fire breaks out, try to extinguish it

Initial evacuation

Where can you escape to?
When and how can you escape?

Collecting information

Has there been a tsunami warning, etc.?

Secondary evacuation

Is the evacuation assembly area safe fromtsunamis, etc.?

Confirming safety
Rescue and first-aid provision

Performing roll-call and reporting; does
anyone need rescuing?

Determining
whether it is safe
to return home

Don’t act recklessly; confirm what the realsituation is first, and only take action after you
have correct information

Yokohama Rubber’s response to the
COVID-19 coronavirus epidemic
In the past, Disaster Prevention measures were based on theassumption that the disaster would take the form of a natural
disaster, fire etc. causing damage to property and injury topeople. The emergence of the COVID-19 coronavirus epidemic
has made it necessary to add new scenarios to Disaster
Prevention planning. Whereas in the past the main focus was on
responding to natural disasters, increasing importance is now
being attached to business continuity and business recovery,
and to activities that relate to preventing disasters fromoccurring.
Many of the countries and regions where Yokohama Rubber
operates have been affected by the announcement of states of
emergency, with citizens being encouraged to stay home,
imposition of lockdowns, and other measures that have had
impacts such as being forced to temporarily suspend
operations. It is not just our business operations that have been
affected; daily life has also been affected.
Yokohama Rubber’s COVID-19 Response Headquarters and Risk
Management Committee have been constantly monitoring thechanging situation, and have been focusing on business
continuity, with efforts in the following two areas playing a keyrole:� Prioritizing the health and safety of employees,
their family members, and our customers
� Working to minimize the negative impact on ourbusiness and operations
In battling the threat posed by the COVID-19 epidemic, what isneeded is a response that recognizes the need to “live with andadjust to the coronavirus,” carrying on daily life and work while
prioritizing health and safety. With this in mind, Yokohama
Rubber formulated, at an early stage, strategies relating towork-styles and guidelines for dealing with customers, adjustingthem as needed, and striving to ensure that all employees werefamiliar with them and implemented them thoroughly.

� Thorough implementation of basic actions

Wearing masks, washing hands / disinfecting / checking
one’s temperature, social distancing, and avoiding the Three
Cs (Crowded places, Close-contact settings, and Confinedand enclosed spaces)

Employee Action procedure
In an emergency, behave calmly
When commuting
to or from work

On company
premises
When atwork

・Ensure your own personal safety
・Collect the information you need・Notify your supervisor that you are safe
(normally, if a disaster occurs when you
are commuting to or from work, you
should return home)
・Ensure your own personal safety (remain
calm)・When the earthquake dies down, evacuate
・Wait for instructions

� Policy regarding going to work / working at home
In line with national government and local government
guidelines, Yokohama Rubber has been thoroughly
implementing “off-peak working” (i.e. adjusting working
hours so that employees can avoid the rush hour, making
use of online meetings, encouraging employees to workfrom home, minimizing hours spent in the workplace, etc.)

� External measures

The company has prioritized efforts to prevent customers,
employees and their family members from becoming
infected, by avoiding meetings that are unnecessary or
which can be postponed.

・Ensure your own personal safety

Outside company ・Collect the information you needpremises
・Check the place where you are staying(while on business trips, etc.)

Outside working hours
On weekends or holidays

・Notify your supervisor that you are safe
・Ensure your own personal safety
・Collect the information you need・Notify your supervisor that you are safe

In the future, Yokohama Rubber will continue to work closelywith suppliers, customers and all other stakeholders, to ensurethat we can continue to deliver our company’s products andservices in a timely manner.

10Products

Aiming to Realize Tire Light-weighting
and New Levels of Comfort throughthe Accumulation of Technology

Significance of
our initiatives

Striving to develop new tire technology can reduce the burden on
the environment

Environmental performance, as seen in fuel-efficient tires, has an important role to play inunderpinning the car-using society of the present day, and of the future. In the 1980s
Yokohama Rubber began to undertake research on silica, developing silica compoundtechnology that has been vital for achieving both fuel efficiency and good wet grip
performance, and on which we have continue to focus over the past four decades. The
eco-friendly DNA series, launched in Japan in 1998, was revolutionary, and we
subsequently continued to attach great importance to eco performance, leading to theintroduction of the BluEarth series from 2010 onwards. We have promoted thewidespread adoption of fuel-efficient tires, and by FY2019 sales of fuel-efficient tires had
grown to account for 90.1% of all sales of replacement summer tires in Japan.
In the future, we will continue to promote the adoption of products that can help toreduce the burden on the environment.

A tireless striving to develop more advanced
environmental and safety technologies
In producing sustainable tire products, it is vitally important to
reduce the quantity of scarce resources that are used. Making tires
lighter saves on resources, and also contributes to improved fuelefficiency by making the vehicle as a whole lighter. We are aiming
to reduce tire weight by 50% compared to existing Yokohama
Rubber tire products, and we are currently working on thedevelopment of ultra-lightweight tires. We are also undertaking
research on tire fins that will reduce the air resistance of thevehicle as a whole.
In addition, in order to make going out in your car as enjoyable

The tires of the future, which Yokohama
Rubber’s research is contributing to thedevelopment of

Saving resources by reducing tire weight by

Around50%(compared to conventional tire products)

Highest level rolling-resistance performanceand wet grip performance
*1

AAA-a

*1 Based on Japan’s tire labeling system

as possible, we are striving to create tires that provide goodbraking performance in the rain and on snow or ice.
For Yokohama Rubber, customer safety is our first priority, andwe have used our advanced silica compound technology to
produce a large number of different tire products that combine
superior fuel efficiency with “Wet-a” (the highest level of wet grip
performance under Japan’s tire labeling system) performance.
Braking performance is particularly important for studless tires. In
2018, Yokohama Rubber completed construction of Japan’slargest indoor ice track testing facility, in Asahikawa City, Hokkaido,
and we continue to work tirelessly to develop studless tires thatcan stop effectively even on slippery frozen road surfaces.
On any vehicle, the area of each tire that is actually in contact

Ultra-lightweight concept tire (Announced in 2019)

Tread patternLight-weighting is achieved by making the tread
thinner. To compensate for the reduced water
expulsion performance, unidirectional tread pattern isused. In addition, the rubber used is specially designed
to provide superior braking in wet conditions.
A lightweight, high-stiffinessbelt is used.

A narrow profile reduces the amount of rubber
used in the shoulder blocks without affecting
the tread contact area.
Directional fins are used (on both the outerand inner walls of the tire) to control the air
flow around the tires and the vehicle body.

A light, high-strength
tire carcass is used.

Weight reduction by making the sidewall
thinner. To compensate for the reduced
protection against external shocks, a uniqueside profile and high-rigidity rubber are used.
The whole area around the tire bead islight-weighted. To compensate for the reduced
rigidity, the shape of the components has been
optimized.

11

Unique directional side-finshave been specially designed
for use with unidirectionaltread tires. Having these finson both the outer and innersidewalls of the tire helps toreduce air resistance.

with the road at any given time is only about the size of a
postcard. We aim to deliver high-performance tires that maximize
vehicle performance and contribute to safe handling to as manycustomers as possible.

Yokohama Rubber’s Tire Test Center of
Hokkaido (TTCH) in Asahikawa City, Hokkaido

Ice track for indoor testing

Difference in braking distance depending on the wet
grip performance grade
The difference between “a” and “c” grade
wet performance is this big

Creating tires that provide even more comfort
In the past, the main benchmarks for the comfort that tires
provide have been quietness and how the ride feels to people inthe vehicle. However, the automotive sector is now facing aperiod of dramatic change, of the kind that comes along only
once a century or so, and the acronym CASE*3 has become a key
concept. New technologies will be needed to meet the needs ofthe autonomous, electric vehicles of the future. Besides quietness
and a comfortable ride, in the future tire manufacturers will also
be working to eliminate the need for tire maintenance and to
overcome the problems that users currently experience with tires.
For example, electric vehicles are inherently very quiet, so tires foruse on electric vehicles need to be even quieter than conventionaltires; autonomous vehicles need tires that are resistant topunctures, and which can run flat if they do get a puncture.
*3 CASE: Connected, Autonomous, Shared & Services (or just Shared), Electric.

IoT-enabled tires of the futureThis gap is reassuring

Contacting the breakdown
service provider that thecustomer has a contract
with (when the car cannot
be driven because of apuncture)Difference in braking
distance dependingon the grade*Speed is 100 km/h

Vehicle insurance company

We are challenging new innovativetechnologies through collaborative research

Tire raw materials
composition*2

Fiber

3

%
Steel

11%

Filler

Other

6

%
Bead

5%

24%

Naturalrubber30%

Synthetic
rubber

If tire air pressure falls, a warning
message will be sent to remindthe customer about worsening
fuel economy and the need tocheck for punctures
E-mails to notify the customer when it
is time for tire rotation or tire
replacement

CustomerCommunicationfrom breakdown
service provider*Speed is 100 km/h

Natural rubber and synthetic rubber account for over half of the
raw materials used to make a tire. By replacing petroleum-derived
synthetic rubber – which accounts for a large share of a tire’s totalcomposition – with sustainable materials, it will be possible toreduce CO2 emissions and make tire manufacturing moresustainable. For that purpose, new technologies are required, andwe are working on bioproduction technology using cells andcatalyst development utilizing data-driven learning. Production of
isoprene by cell engineering has been developed in collaboration
with National Research and Development Agency RIKEN and
Zeon Corporation, and research on catalysts for production of
butadiene by using data driven learning is also underway, incollaboration with the National Institute of Advanced Industrial
Science and Technology (AIST) and the Research Association ofHigh-Throughput Design and Development for Advanced
Functional Materials (ADMAT).

Notification e-mailBreakdown
service

Making an appointment
to visit the nearest
Yokohama Rubber tires
dealer• Tire rotation• Tire replacement• Puncture repair

NearestYokohama Rubber
tire dealer

Request for
breakdown service

TPMS sensors
Air pressure,temperature, wear,
ID and other tire
information

Customer’svehicleBreakdown
service

Silent Ring

Silent Rings have sound-absorbent material attached to plastic bands, andfunction by being attached to the inside of the completed tire. They are notglued onto the tire, so puncture repair agents etc. can still be used. Silent
Rings can be used with a tire speed rating of up to W class (i.e. up to 270 km/h).

Silent Foam

Sound-absorbent material is fixed in place by being glued to the inside of thetire. This is used on the tires originally fitted to each vehicle by the automotive
manufacturer. Silent Foam can be used with a tire speed rating of up to Y class(i.e. up to 300 km/h).

Silent Foam Hook-and-Loop Fastener Concept Tire
(currently under development)

With this technology, which is currently under development, Silent Foam isfixed in place using detachable hook-and-loop fasteners, which provide more
flexibility in mounting, and can also be used for attaching other functional
components, along with various other advantages such as allowing puncture
repair agents to be used. This technology also provides the thermal resistanceand strength that the tire manufacturing process requires.
*This is a collaborative development project with Kuraray Fastening Co., Ltd.

A further trend is the application of Internet of Things (IoT)
technology to tires. Besides conventional TPMS*4 systems,
research is now underway aimed at addressing the problems thatpeople experience with tires, in line with future changes in car
ownership models such as the rise of car-sharing, etc., by utilizing
tire sensor based wear detection, road surface detection, andcomprehensive cloud-based tire air pressure management, as
well as tire maintenance services (including wear inspection andtire rotation management) that make use of digital tools, etc. With
this in mind, Yokohama Rubber is working on an Intelligent Tire
Concept that will provide new levels of comfort and peace ofmind, through collaborative research with ALPS ALPINE CO., LTD.
on advanced tire sensors for passenger vehicles.
*4 TPMS: Tire Pressure Monitoring System

21%*2 Exact composition
varies depending on tiresize and model.

12

The Earth

Launching of Initiatives in Thailand to
Foster Sustainable Natural Rubber
Procurement

Significance of
our initiatives

Aiming to address the risks and social issues that affect efforts tomake natural rubber a sustainable resource

Natural rubber accounts for around 20% of Yokohama Rubber’s raw materials
consumption. Being able to procure natural rubber in a stable, sustainable manner isvitally important in order for Yokohama Rubber to be able to continue supplying our
products to customers over the long term.
In order for the Yokohama Rubber value chain as a whole to operate sustainably on an
ongoing basis, we are implementing activities to ensure stable procurement of
ethically-sourced natural rubber going forward, while helping to safeguard ecosystems
and the natural environment in natural rubber producing regions, and while giving due
consideration to human rights issues.

Risks relating to natural rubber plantations
Natural rubber is cultivated in hot, humid regions within abelt extending roughly from 15 degrees south of the Equator
to 15 degrees north of it, in areas that include Southeast Asia,
Africa, and Central and South America. Approximately 80% of
global output is concentrated in Southeast Asia, which is alsoa region renowned for its outstanding biodiversity. Natural
rubber is used in the manufacturing of a wide range of
products, including gloves, hoses, shoes, etc., but around
70% is used in tire manufacturing. As the process of
motorization continues around the world, in the future
demand for natural rubber can be expected to increase still
further.
If natural forests are cut down in order to develop natural
rubber plantations to meet this growing demand, then thiswill have a serious negative impact on local biodiversity. In
some regions there are also concerns about illegal logging,land grabbing and human rights abuses such as child laborand forced labor.
Without clarity about where the natural rubber used in
Yokohama Rubber products comes from, there is a risk thatthe company may unknowingly be contributing to unlawful
behavior or environmental destruction. For this reason, it isvitally important to establish traceability, and to put in placea framework that will facilitate sustainable natural rubber
production in each region.
However, taking Indonesia as an example, there are

The current state of our initiatives inThailandAgroforestry initiatives

45 plantations(covering a total of 157 hectares)
No. of rubber farmers visited

approximately 6 million natural rubber farmers in the
country, and the rubber that they produce is delivered tonatural rubber processing factories through a complex
network of middlemen that may include as many as eightlevels of intermediaries, with a total of around 100,000
intermediary dealers involved. Establishing clear traceability
is thus no easy task.

The main concerns in regions where natural rubber
production takes place (based on an NGO survey)
� Negative impact on biodiversity (Sumatra and Borneo inIndonesia)
� Illegal logging (Cambodia)
� Illegal land seizures (the Mekong River valley, and Africa)� Human rights violations

Rubber collecting (rubber tapping)13

101 farmers

Yokohama Rubber’s Initiatives to Date

Agroforestry initiatives

In both 2016 and April 2018, Yokohama Rubber held
Suppliers’ Day meetings, at which our main natural rubber
procurement partners were invited to Japan so that we could
share our approach to sustainable natural rubber
procurement with them. In January 2017, Yokohama Rubber
announced its support for the goals of the Sustainable
Natural Rubber Initiative (SNR-i) advocated by theInternational Rubber Study Group (IRSG), and beganparticipating in SNR-i activities. In October 2018, Yokohama
Rubber formulated and announced its own Procurement
Policy for the Sustainable Natural Rubber. Yokohama Rubber
is also a founding member of the Global Platform for
Sustainable Natural Rubber (GPSNR), initiated by the Tire
Industry Project (TIP) of the World Business Council for
Sustainable Development (WBCSD), which was launched in
October 2018, and the GPSNR’s 12 principles are reflected in
the Procurement Policy for the Sustainable Natural Rubber.

From when a rubber tree seedling is planted until the tree ismature enough for rubber to be harvested from it takes
around 5 – 6 years. By adopting agroforestry – which YTRC
has been supporting the dissemination of – rubber farmers
can obtain income from other crops during the period inwhich they are waiting for rubber trees to come to maturity.
Once the rubber trees can be harvested from, the wide
variety of additional crops that have been planted in theplantation will continue to help ensure a stable income forthe farmer.
Rubber trees experience a phenomenon called “wintering,”
in which the leaves fall off all of the rubber trees at the sametime after a given period of time. Outside the wintering period,
very few leaves fall, and because there is no ground litter(formed by the decomposition of fallen leaves by insects andmicro-organisms) covering the earth, steps need to be taken toprevent the soil from drying out. With agroforestry, a wide
range of other crops are rooted in the soil, and the soil becomesan attractive habitat for micro-organisms that break down theleaves and twigs that fall from these other plants, all of whichhelps to improve the soil environment. The decomposed leaves
and twigs can also be used as fertilizer for the rubber trees,
which contributes to cost reductions for the farmer.

Initiatives in Thailand
In Thailand, which is a major producer of natural rubber,
Yokohama Rubber has been undertaking joint research on
natural rubber with several local universities since 2013. Y.T.
Rubber Co., Ltd. (YTRC), a Yokohama Rubber natural rubber
processing firm located in Surat Thani Province in Southern
Thailand, has adopted a water circulation and purification
system that re-circulates and reuses the water used within
the plant, and the firm has striven to safeguard the naturalenvironment and maintain a relationship of trust with local
residents. Since 2016, YTRC has been promoting the adoptionof agroforestry* techniques to help natural rubber farmers
maintain a stable income.
In an activity that reflects the 12 principles of the GPSNR
and the Procurement Policy for the Sustainable Natural
Rubber, YTRC has launched farm surveys in the Surat Thaniregion where YTRC is located. To date, YTRC has visitedaround 100 farms, undertaking surveys with regard to illegal
logging, child labor and forced labor, etc., and aiming to
spread awareness of Yokohama Rubber’s initiatives to makenatural rubber a sustainable resource.
In addition to these measures, in January 2020 YTRC signed
a memorandum of understanding with the Rubber Authorityof Thailand (RAOT) to collaborate on efforts to enhance
traceability, so as to provide support for the operation ofnatural rubber farms and ensure a sound, transparent supply
chain.
* Agroforestry is an agricultural technique that involves planting a mixture of different
crops and trees within the same plantation.

Specific measures implemented
1. Ongoing implementation of environmental andsocial surveys of natural rubber plantations
500 farms by 2022
2. Studies aimed at the realization of traceability
Implementation of a pilot project in the Surat Thaniregion of Thailand
3. Provision of support for farmers
Provision of training in the Surat Thani region incollaboration with RAOT, and implementation of farmmanagement support measures

Key issues and our vision for the future
Natural rubber is a carbon-positive resource (i.e. one thathelps to absorb and sequester carbon dioxide), and it has also
formed an industry that underpins the local economy inmany places. The main use for natural rubber is in the
manufacturing of tires, which play a vital role in supporting
motorization – in other words increased mobility for bothpeople and goods – throughout the world, and which also
constitute the only part of a vehicle that actually touches theearth. Tires are responsible for all of a vehicle’s key functionsof moving, turning and stopping, and as such demand fortires will continue to increase steadily in the future.
In order to maintain a stable supply of natural rubber
moving forward, without the destruction of forests to create
new plantations and without land-grabs, etc., Yokohama
Rubber will continue to roll out activities rooted in thecommunities where natural rubber is produced, in
partnership with all stakeholders with an interest in natural
rubber.

Signing the memorandum of understanding with RAOT

14

PeopleCreating an Environment Where Every
Individual Can Maximize
Their Achievements, by Building an
Employee-friendly Company

Significance of
our initiatives

Putting in place an environment where everyone can fully
develop their capabilities

In line with the Yokohama Rubber Group’s management policy, which emphasizes theneed to “Create a workplace that values, improves and energizes people,” we are working
to put in place – from the perspective of both awareness and systems – an environment
in which diverse human talent can acquire the skills they need and then exercise thesecapabilities to the maximum. We aim to build a workplace where employees can achieve
meaningful work-life balance, so that no-one feels that they have to give up work
because of the constraints imposed by childcare or senior care responsibilities, etc., andall employees are able to work enthusiastically while respecting one another’s diversity.

Initiatives to enable employees tocontinue working over the long-term

Holding ofworkstyle-related seminars

13 sessions

No. of seminar participants

503 people in total
Expanding the flexible workstyles system
Yokohama Rubber has adopted various systems to promote
diverse workstyles, including the Working from Home System, an
extension of the period for which employees can use shorter
working hours under the Shorter Working Hours Scheme, asystem making it possible for employees to take annual leave inhourly units, the abolition of a core time period (when working isalways required) in the company’s flextime system, etc. These
measures embody one of the company’s management policies,
which is to build a framework enabling any employee to generatemeaningful achievements in their work at any time and in any
location.

Overview of the expansion of Yokohama Rubber’ssystem for supporting diverse workstyles
The basic strategy of the Diversity Promotion Taskforce :“Positioning ourselves as a company that welcomes diverse
workstyles, with an employee-friendly working environmentthat will encourage employees to serve long term.”
Working from Home System
Shorter Working Hours Scheme(Scope of application extended from parents of children up to the 3rdyear in elementary school to include parents of children up to the 6thyear in elementary school)
System enabling employees to take annual leave in hourly units
Formulation of measures to support employees returning to work after
taking maternity & childcare leave
Establishment of a contact window providing consultations for
employees with childcare or senior care responsibilities
Abolition of the core time period in the company’s flextime system, etc.

15

Shifting the focus from promoting women’s
advancement to promoting diversity in general
In October 2016, Yokohama Rubber established the Women’sParticipation and Advancement Taskforce. Initially, the measures
promoted by the Taskforce were heavily focused on enhancing
opportunities for women to develop their careers at the company.
At the time when the Taskforce was established, women were verymuch in the minority in the company’s workforce, and many
women found it difficult to keep working full-time because ofchildcare or senior care responsibilities. As a result, women tended
to be assigned subsidiary, supporting roles within the company,
which was a hindrance to their career development. Subsequently,
analysis of employee opinion surveys and interviews, andexamination of trends in the wider society, showed that thechallenge of maintaining a career while balancing personalmatters such as childcare and senior care with one’s work was a
problem for all employees, regardless of gender or age.
With this in mind, in July 2019 the name of the Women’sParticipation and Advancement Taskforce was changed to “Diversity
Promotion Taskforce.” The renamed Taskforce is engaged inpromoting diverse workstyles that will enable not only women, butalso foreign employees, employees with disabilities, LGBT employees
etc. to receive the respect they deserve, and to maximize theirindividual achievements within the company. Taking the Taskforce’s
long-standing strategic goal of “Positioning ourselves as a company
that welcomes diverse workstyles, with an employee-friendly
working environment that will encourage employees to serve longterm” as the foundation, the Diversity Promotion Taskforce willcontinue to promote diversity within the company.

Transforming both systems and attitudes
Having used a care-related survey of 5,500 employees conducted
in 2018, and interviews with employees who volunteered to takepart, to identify current issues and needs, we have been
implementing measures to expand our systems relating to careprovision. More specifically, the criteria for being able to make useof carried-over vacation time have been relaxed, and carried-overvacation time can now be used for senior care provision purposes.
In addition, by establishing a consultation contact window, wehave made it easier for employees to obtain consultations, andenabled them to get the information they need in a timely manner.
We have also put in place a follow-up system for female
employees who take maternity leave, covering the whole period
from pregnancy through to the return to work. Thirteen seminars
have been held – including seminars for supervisors of employees
who are returning to work, seminars for the employees
themselves, care-related seminars, and lectures for company
officers about workstyle reform, etc. A total of 503 employees
participated in these seminars.
With regard to human resource development, we have
expanded the holding of seminars relating to careerdevelopment, which is a key strategic focus for us. By holding
Unconscious Bias*1 Seminars, for female employees, we havebeen working to strengthen career-mindedness, and we have also
been working to enhance management skills by holding Young
Employee Cultivation Seminars for managers, to help managers
understand how the environment has changed for the younger
generation. In addition, we have held LGBT Seminars, as venues tothink about the issue of SOGI*2-related harassment. Seminar
participants learned about how casual, unintentional comments
or actions by the people around them can make LGBT people feel
isolated, and were able to develop a more in-depth
understanding of the need for business enterprises to takeappropriate measures in this area.
In the future, we will continue to implement various initiatives
to enhance the productivity of our diverse employees (including
young people, senior citizens, women, people with disabilities,
LGBT people, etc.), and to generate new value that goes beyond
what has been possible up until now.

Yokohama Rubber’s response to the
COVID-19 epidemic
Taking the safety of our employees as our key priority, theYokohama Rubber Group as a whole has taken the following
measures in response to the COVID-19 epidemic.
(1) Adoption of flexible working hours, as well as working fromhome and other forms of teleworking (where the nature of
the employee’s work makes this possible), etc.
(2) Restrictions on business travel (prohibited, except in special
circumstances)(3) Minimizing the amount of human contact on company
premises (for example, implementing staggered meal times
in employee cafeterias, and reducing the number of seats sothat employees are not sat directly opposite one another)(4) Placement of alcohol-based sanitizing agents at entrances,including reception areas, cafeteria entrances, etc.
(5) Temporary implementation of shift working for all employees
In cases where an employee is confirmed to have contracted
COVID-19, this information will be shared throughout thecompany (while protecting the anonymity of the employee inquestion). Following the instructions and advice received fromthe local health center, disinfecting will be performed, and theworkplace in question will be closed for a specified period oftime, with employees being required to undergo testing andself-isolate at home.
Mask production at Yokohama Peer Support
During the period in which masks were in short supply in Japan,
Yokohama Peer Support Co., Ltd. (YPS) undertook production ofmasks itself, so as to avoid having to ask for an allocation of newmasks. Mask prototypes were created using a variety of different
materials, and a standard operating procedure was formulated
for mask production. While the state of emergency was in force
in Japan, YPS staff undertook mask production at home.

*1 “Unconscious bias” refers to prejudices that people hold without being aware of it.
*2 “SOGI” stands for Sexual Orientation and Gender Identity.

Making mask prototypes at
YPS

Systems put in place in FY2019
Issue
Childcare andsenior care

Content
Relaxation of the criteria for making use of carried-over vacation
time (April 2019)

Future issues

Childcare andsenior care

Establishment of an internal contact window for consultations(July 2019)

Workstyles

Review of the advisability of relaxing the criteria for utilization ofhome-working and flextime (scheduled to begin in January 2020)

Due to the impact of the COVID-19 epidemic, conventional ideas
regarding workstyles have been transformed. Yokohama Rubber ismaking the most of this opportunity to adopt new workstyles.
In order to build an organizational culture in which every
individual employee is respected and able to fulfil their potential,
thereby helping to raise productivity, managers’ attitudes have a
key role to play. As part of our diversity promotion program for
managers, besides implementing systematic diversity
management training, we are also working to support the active
participation and advancement of diverse employees, and we arecontinuing to implement measures to support female employees’
career development, help employees to balance their work
responsibilities with childcare and senior care responsibilities, andprovide support to help employees with disabilities and LGBT
employees to fulfil their potential.
Our aim is to cultivate a corporate ethos that is fully accepting of
the diverse workstyles of diverse employees, and to build acompany in which all employees can continue to work with highmotivation over the long term.

Seminars implemented in FY2019
Participants
Employees who have taken
maternity/childcare leave
Female employees(in their 20s or 30s)
Female employees(in their 40s or 50s)

Content
Training prior to returning to work
Career development training for female employees

Managers

Health seminar (breast cancer)
Seminars for company officers(Ikuboss*3 (workplace bullying/support for work-life balance))
Subordinate cultivation seminars(support for work-life balance/Ikuboss/mentoring of young employees)

Managers

Mental health seminars

Managers

LGBT seminars

Female employees
Company officers

All employees

Health seminars (sleep health)*3 “Ikuboss” is a term developed in Japan to refer to a supervisor who pays due attention
to the work-life balance of subordinates and colleagues in the workplace, and provides
support for them in their careers and personal lives, while also ensuring that theorganization continues to maintain strong operational performance, and realizing anappropriate work-life balance himself/herself.

16

Community

Contributing to the Solving ofSociety’s Problems throughthe YOKOHAMA Magokoro Fund

Significance of
our initiatives

Turning employees’ desire to be of use to society into reality

The YOKOHAMA Magokoro (Sincere Heart) Fund was established in response tocomments received in a survey of the Yokohama Rubber employees conducted after theGreat East Japan Earthquake of 2011, which included “I would like to do something toaddress the social problems affecting the world, but I am not sure how to initiate social
contribution activities” and “I don’t have enough time to volunteer.”
The Fund makes it possible to respond promptly with donations when a disasteroccurs.
Rather than just providing unidirectional support, the Fund engages in communicationand exchange with organizations that are engaged in providing support on the frontline,
so that employees are able to develop a more in-depth understanding of society’s needs,
and can apply what they have learned in the workplace.

Donations made by the YOKOHAMA
Magokoro Fund (cumulative amount)Support for specific organizations

4.72 million yen

Donations following disasters

7.50 million yen

Yokohama Rubber provides matching donations equivalent to theamount that employees donate to the Fund.

The background to the establishment of the
YOKOHAMA Magokoro Fund
When the Great East Japan Earthquake occurred in 2011,
Yokohama Rubber responded to an appeal by Global Compact
Network Japan, authorizing a total of 60 employee volunteers toprovide assistance in the areas affected by the disaster.
Subsequently, on the basis of interviews and discussion
meetings with the participating employees, it was decided thatthe company needed to put in place a framework for ongoing
volunteering activities.
With the volunteers and the CSR & Environmental Affairs
Department (as it then was) playing a central role, a Social
Contribution Sub-committee was formed. The Employee Social
Contribution Activity Support System (Volunteering Activity
Support System) was established in April 2014, and the
YOKOHAMA Magokoro Fund (hereinafter referred to as the“Magokoro Fund”) was set up in May 2016; they have continued
to operate continuously ever since.

The Magokoro Fund framework
All Yokohama Rubber employees (i.e. all persons who are in an

17

employment relationship with the company) have theopportunity to join the Magokoro Fund. Members voluntarily
contribute part of their monthly salary in units of 100 yen, andthese funds are used to provide support for specificorganizations.
Members submit suggestions as to which organizations the
Magokoro Fund should support to the Fund’s Secretariat; theFund’s Management Committee, composed of representatives ofeach Yokohama Rubber workplace, then screens the candidate
organizations, and decides which organizations should receive
funding support and in what amount. When a natural disasteroccurs, the Management Committee deliberates and decides
whether the Fund should provide a donation. When a donation is
made, Yokohama Rubber provides a matching donation of thesame amount to the organization in question, thereby making it
possible to provide an even higher level of support.

Changing employees’ attitudes throughcollaboration with the supported organizations
In 2019, some of the organizations supported by the
Magokoro Fund held study sessions etc. at Yokohama Rubber
facilities. Rather than just providing unidirectional support, byfostering communication and exchange with the supported
organizations we are able to provide stimulus for Yokohama
Rubber employees’ thinking, and make them aware of the kindsof problems that are affecting society. We anticipate that,through this kind of activity, we can develop ideas as to how
Yokohama Rubber can help to address society’s problems
through its products and services.

Organizations that we supported in 2019
■︓Main activities undertaken by the supported
organization✿: Purpose for which the support from the Magokoro
Fund was used

NPO corporation Ikawako■Environmental education,
3R (Reuse, Reduce,
Recycle)awareness-raising,mangrove forest planting
and other environmental
projects in the Philippines✿ In the past, the Don
Aguido Reyes Maboloc
The new water tank installed at the high school
Memorial High School
depended on a single well as its water supply. The funding
support received from the Magokoro Fund was used to install
new water supply facilities so that the school’s students canenjoy greater comfort and better hygiene at school.

Certified NPO corporation ChildFund Japan■Supporting the healthy
growth of children living
in poverty in countries
such as the Philippines
and Nepal, and helping
families and communities
in these regions tomaintain their autonomy✿ Through ChildFund
Cards etc. sent by Yokohama Rubber
Japan’s sponsorship
employees to children in the Philippines
program, the Magokoro
Fund has helped four children living in the Philippines toreceive the support they need, in relation to education,
healthcare, nutrition, etc. Yokohama Rubber employees wereable to communicate with the children through theexchanging of letters.

General incorporated association JEAN
■Activities to address the
problem of marine debris(ocean garbage), throughmarine debris
awareness-raising
activities and coastline
clean-up activities, etc.
✿ In the last few years, there
has been growing
Study session to spread awareness of theconcern about the
problem of marine debris
problem of plastic waste
polluting the oceans. Funding support from the Magokoro
Fund was used to hold study sessions etc. that made use ofleaflets about the problem of microplastics (which were
produced using Magokoro Fund funding assistance theprevious year).

Certified NPO corporation Shine On! Kids
■Promoting canine-assisted
therapy to help givechildren struggling withcancer or other healthissues the courage to facehospital life andtreatment programs✿ Funding support from the
Magokoro Fund was used
Tai (left) and Masa (right), two new facility dogs
for the training of new
in training
facility dogs to ensurethat Shine On! Kids’ facility dog program, which provides
facility dogs to keep children company, can continue tomaintain stable operation.

Certified NPO corporation REALE WORLD■Through collaboration between Japan and Nepal, using soccer
to help children cultivate life-skills and create a future full of hope
✿ The aim is to utilize
funding support from the
Magokoro Fund to make itpossible to donate footballboots donated by
Japanese children who
have taken part in theReale Cup (aneducation-oriented soccer
Nepalese children who received football boots
competition) for use by
from Japan
children in Nepal.

Donations in response to serious natural disasters
When a major natural disaster occurs, the Magokoro Fundmakes donations for disaster relief; these funds are delivered tothe people affected by the disaster through organizations suchas the Japanese Red Cross Society. Making donations from the
Magokoro Fund makes it possible to respond to disaster more
rapidly than if a special donation drive had to be organized
every time. By providing a matching donation in the sameamount as that provided by the Magokoro Fund, Yokohama
Rubber ensures that more funds are available for disaster relief.

Disaster relief donations made in FY2019
Name of disaster
Damage caused by torrential rains in Japan in August 2019

Amount of
donation
500,000 yen

Damage in Chiba Prefecture caused by Typhoon No. 15(Typhoon Faxai) in 2019

500,000 yen

Damage caused by Typhoon No. 19 (Typhoon Hagibis) in 20191,500,000 yen*In each case, Yokohama Rubber made a matching donation of the same amount as thatmade by the Magokoro Fund. (In the case of Typhoon No. 19 in 2019, Yokohama Rubber
also made a separate, additional donation in the company’s own name.)

Future issues
In the future, we aim to further strengthen our communicationand exchange with supported organizations, building
relationships that enable us to work together to play a usefulrole in addressing social problems. We are also considering
expanding the scope of support provision to include new areas,
including support for organizations in fields that we have notbeen able to support before, and organizations that are working
to solve social problems that are particularly pressing in the eraof the COVID-19 coronavirus epidemic.

18

TOPIC

Health Declaration (Guidelines published outside company)

Health management at
HAMAGOMU AICOM

HAMAGOMU AICOM INC. is the only company in the Yokohama
Rubber Group that provides information system services, and is
responsible for IT in the Yokohama Rubber Group. It also carries
out a lot of work outside of the Group at customer sites. The
average age of our employees is 40.3 years old and 24.9% ofthem are women, which is relatively high for the industry. As an
IT company, people are our most important asset. With the aimof creating a workplace where each and every employee canfeel healthy and motivated both physically and mentally, we
have been working on health management and have acquired
health management certification.
For related measures, we thoroughly follow up on employees
who are given D grades during their medical examinations,improve the knowledge of managers regarding mental health,and share the status of overwork measures at monthly
management meetings. In addition, we also promote exercise
through activities such as our golf group.

Yokohama
Health Management
Certification(Class AAA)

Third-party Opinion

Certified Health &Productivity Management
Outstanding Organization(White 500)

Target values

Health-related

Regular health checkups
Follow-up to overall judgment of D grade or higher 100%

Lifestyle habits

Appropriate BMI (18.5 to less than 25)
Smoking rate

75% or more
20% or less

Mental health

Retirement and repeat leaves ofabsence of those on mental leave

0 cases

Paid leave acquisition rate
Measures against Refreshment leave
overwork
Benefits-related leave
Overtime work

Company-wide average of 65% or more
On-time acquisition rate 100%
Maintained number of days used
Company-wide average of 18 hours or lessIn fiscal year 2019, we introduced an office casual dress codeand full flextime with the aim of creating new ideas through freeworkstyles. We have also been awarded the Sports Yell
Company certification by the Japan Sports
Agency. In the future, we will continue to work
to create a healthier work environment for our
employees by reviewing the reemployment
system to respect individual lives andGolf group competition
maximize performance, obtaining theKurumin Mark to support the sounddevelopment of children, who will be theleaders of the next generation of society, andcontinuing our health certifications.
Cart driving event

This opinion has been written based on the contents of this report,interviews held with people at Yokohama Rubber, and field observation.

Ms. Joanna Sook Ja Park
Appassionata, Inc., President and Consultant

Appassionata was established in 2000 to promotea work-life balance and diversity. Appassionata
has supported many companies with humanresources development and awareness reform inareas such as unconscious prejudice, diversity,and telework (working from home).

Health management at HAMAGOMU AICOM INC
In the labor-intensive IT industry, “human resources are uniqueassets.” HAMAGOMU AICOM INC., which is responsible for
information processing services, is commended for thecommitment of its management and managers and the common
understanding of all employees by establishing and releasing ahealth promotion declaration on its website in order to promotehealth management. Establishing a promotion system, reviewing
the content of initiatives and monitoring changes in acquired
data to confirm progress. In terms of lifestyle habit-related issues,
the company has announced target values such as 100%
follow-up of regular health checkups, 75% of employees
maintaining an appropriate weight, and a 20% smoking rate,
which shows how serious the company is about addressing theseissues. The company is also making efforts to enhance diverse
workstyles and work environments, such as throughtelecommuting, shared offices, shift work and shared desks, aswell as to promote communication through company-wide
events and assistance with club activities. The acquisition ofmultiple ISO certifications has created an environment in which
the PDCA cycle for health management can be easily
implemented. New efforts are being made in response to theresults of the previous year’s health seminars for women andquestionnaires on daily physical and mental conditions. I lookforward to the continuation of health certifications and the19

Health issues

development of the Group company in the future.

Diversity initiatives
The Women’s Participation and Advancement Taskforce, which
was launched in 2016 to promote the women’s participation,
was renamed and enhanced in 2019 as the Diversity-Promotion
Taskforce, which for a diverse workforce to respond to socialchanges. Although the target audience has been expanded, thetaskforce policy of “positioning ourselves as a company thatwelcomes diverse workstyles, with an employee-friendly
working environment that will encourage employees to serve
long term” has remained consistent since its inception.
An expanded Working from Home System that can be used byboth men and women, the abolition of a core time period (whenworking is always required) in the company’s flextime system, andthe establishment of a consultation service that enables
employees to respond quickly to issues related to childcare andnursing care, among other things, have been provided. The
number of seminars held was also higher than scheduled, and thenumber of participants ranged from executives to generalemployees. Exchanges with other industries were also planned. In
addition, the company is commended for providing educationand training for managers to improve diversity management skills
as the diversity of employees, including foreign, disabled andLGBT employees, continues to increase.
Yokohama Peer Support Co., Ltd., which promotes theemployment of people with disabilities, produced masks for
employees to use during the declared state of emergency and in
response to the shortage of masks, and was able to pass onmasks distributed by the company to other people in need. With
the impact of the COVID-19 drastically altering conventional
wisdom, I expect that the company will develop a variety ofmeasures to help its diverse employees play an even more activerole and create new value in the future.

Keisuke Takegahara
Executive Officer, Development Bank of Japan Inc.
Deputy Chief Research Officer,
Chief Manager of Sustainability Management Office,Corporate Planning & Coordination Department

He joined the Development Bank of Japan in
1989. Prior to taking his current position, he
served as the Chief Representative in Frankfurt,
Germany, and as General Manager of theEnvironmental Initiative & Corporate Social
Responsibility-Support Department. He has held
a number of government positions, including as
temporary member of the Central Environmental
Council of the Ministry of the Environment.

CSR Report 2020 introduces the Group’s various initiatives
based on the five key themes identified in accordance with the
GRI Guidelines, ISO26000, among other standards. It is obviousthat the report has been edited with a strong awareness of its
readability to a wide range of stakeholders, for example, by
arranging the significance and KPIs of each issue in aneasy-to-understand way and providing brief explanations that
focus on key points. Meanwhile, the website provides detailed
disclosure of CSR activities in accordance with the GRI
Standards, and the structure of the website is designed torespond to the interests of readers who want to learn more
about the company through using different media. By looking
at the series of disclosures as a system, this report serves as an
executive summary of the Group’s CSR activities for a wide
range of readers. Below are my impressions of the report fromthis perspective.
The corporate philosophy and CSR slogan at the beginningof the report play an important role in listing the contents of
the report and bridging the gap with the website. Due to theinformation spanning a variety of topics being compressed
into a small space, I am concerned that simply looking at the
information on this page will not adequately convey to readers
the depth of the company’s intentions in the CSR slogan andwhy the five key themes have been identified as important. I
think it would be meaningful to reiterate the process of
formulating the CSR slogan and the company’s thinking
behind it, including on the website. The addition of
information from the Annual Report, such as the flow of value
creation and medium- to long-term business strategies, would
heighten the interest of ESG investor and further emphasize
the image of CSR management embodied in the Message fromthe President regarding “Business Creation and Business
Maintenance.”

In the business and product introduction that follows, an
overview of each segment and its main products arepresented. The page is highly informative since it provides an
overview of the Group’s sales structure and main products, but
as a CSR report, I think it should be structured to better show
the connections between the two. Specifically, I think that
focusing on how the products are used in society andincluding the perspective of what kind of issues they relate toin the market, or on the value they are achieving in themarketplace after leaving the company’s hands, will improvethe connection with the content in the later section.
“Risks and Opportunities in Sustainability Management” isthe most important content in this report, which reviews thereporting on each of the following themes. As mentioned
above, introducing the reasons and process by which the five
key themes were identified at some point is effective indeepening the understanding of readers, but it would bebetter to integrate the description of “Risks and Opportunities”
with the content of “Yokohama Rubber’s Initiatives” andpresent it as a “Risk and Opportunity” report that focuses on
the business model to better illustrate the Group’s strategy. For
example, in “Products (page 12),” there is a description that
foreshadows new business models such as CASE and IoT. In thesummary table, this corresponds not only to “new business
opportunities by adapting to CASE,” but also to multiple“opportunities” such as the “change in mobility in regions withan aging and shrinking populations” and “mobility services in
the new normal,” which are categorized as local communities.
In addition, the sustainable sourcing of natural rubber, as
described in “The Earth,” should be seen as a major risk
mitigation and opportunity creator for the Group, not only interms of the environment, but also in terms of human rights. I
expect that clarifying a series of good practices and therelationship between risks and opportunities will help tocommunicate the Group’s objectives more clearly. As part ofthis process, it may be useful to consider the KPIs presented at
the beginning of each theme from the perspective of theirappropriateness in describing risks and opportunities.
I believe that this is a communication tool that fully meetsthe editorial intent of the report, which is to provide an
opportunity for a wide range of stakeholders to see theGroup’s broad range of CSR activities. I look forward to its
further evolution in order to deepen readers’ understanding of
the Group’s CSR activities.

Response to Third-Party Opinion
Thank you for taking a careful look at the Group’s initiatives.
We will carefully consider your feedback and use it for making
improvements. In the countries and regions in which we
operate, it is of utmost importance that we provide a
comfortable place for everyone to work and to perform to thebest of their abilities, with the safety of our employees as abasis, in the event of major natural disasters or the spread of
COVID-19. Therefore, we will further promote the creation of asafe and healthy work environment that responds to “newlifestyles and workstyles.” In addition, each and every
employee will strive to achieve the CSR slogan of “Caring for
the Future” based on the management policy of “Business
Creation and Business Maintenance” in the Message from the
President. In other words, we will further strengthen ourcollaboration with our business partners and customers,
provide environmentally-friendly products, and live inharmony with local communities to help
solve the social issues of the SDGs. We will
strive to communicate our value creation
process, our medium- to long-termbusiness strategy, and our efforts tomitigate risk and create opportunities
more clearly to our stakeholders.

Shigetoshi Kondo
Officer, Head of Corporate Social Responsibility Division(as of September, 2020)20

Primary Initiative Progress Report
This report will contain data on our group’s main efforts within the context of the ISO26000*1 framework, along with three-year’s
worth of corresponding data. Please see the “FY2019 Activity Report” for detailed information on each initiative.
*1 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 × = Has declined

ISO26000

Item

2017

2018

2019

Self-assessment

350,825 million yen

348,169 million yen

360,277 million yen〇

100%(Number ofattendees: 814)

100%
(Number ofattendees: 597)

100%
(Number ofattendees: 94)〇

Number of whistle-blower incidents(domestic consolidated)

117

112

139

〇

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

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

1

1

0

〇

Raw Materials

Total amount of raw materials used(consolidated)

798 thousand tons

796 thousand tons

812 thousand tons

( boundary
expansion )Water

Total amount of water used(consolidated)

8,266 thousand m3

8,102 thousand m3

8,718 thousand m3( boundary
expansion )Percentage of total production yielding
environmentally-friendly products(consolidated)

100%

100%

100%

〇

Ratio of sales of fuel-efficient tires forpassenger vehicles (summer
replacement tires/non-consolidated)

87.0%

89.9%

90.1%

〇

Biodiversity

Enforcement rate of conservation
activities at production sites(consolidated)

50%

58%

67%

〇

EnergyTotal consumption (consolidated)

1,353,082MWh
342,456Kl

1,333,451MWh
337,461Kl

1,774,552MWh
448,587Kl

Atmospheric Emissions

Greenhouse gas emissions(consolidated)

Economic Performance

Distribution of economic value(total/non-consolidated)
Number of employees who attended
educational classes (non-consolidated)

Corporate Organizational
Governance GovernanceCompliance* Attendance percentage based upon employee
attendance targets* Including training in Thailand* Including anonymous and non-anonymous consultations

Products

ConsumerIssues

Products and Services

The
Earth

The
Environment

Environmental Complaint
Processing System

Number of complaints made to theofficial complaint processing system(consolidated)

Scope 1
Scope 1
Scope 1
363 thousand tons
371 thousand tons
583 thousand tons
Scope 2
Scope 2
Scope 2469 thousand tons
354 thousand tons
349 thousand tons
Scope 3
Scope 3
Scope 323,237 thousand tons 22,055 thousand tons 22,744 thousand tons△△△

( boundary
expansion )△( boundary
expansion )

0

0

1

△

0

0

0

〇

0

0

0

〇

*Number of cases resulting in official action

Businesses projected to be at risk ofchild labor/forced labor involvement
Human Rights

Child Labor/Forced Labor

Number of complaints made to theofficial complaint processing system(consolidated)* Number of cases resulting in official action

PeopleLabor Practices

Fair Operating
Practices

Rate of lost-worktime injuries(consolidated/per 1 million work hours)

0.50

0.36

0.26

〇

Diversity and Equal
Opportunity

Percentage of women employed incomprehensive work positions(management positions or positions
that lead to management positions)(non-consolidated)

34

23

31

〇

Assessment of Environmental
Impact, Human Rights,
Labor Practices,and Societal Impact ofBusiness Connections

Percentage of business connections
developed after the impact assessment(consolidated)

100%

100%

100%

〇

Compliance Complaints
regarding BusinessConnections (Societal Impact
Complaint Processing System)

Number of complaints made to theofficial complaint processing system(consolidated)

0

0

0

〇

90.7%
300

82.1%
216

93.8%
136

(90% or more)

Number of CSR Study
Session Participants from
Business Connections

Community* Certain business connections aretargeted each year for participation.

Community
Involvement andDevelopment

21

Occupational Health and
Safety* Number of cases resulting in official action

Number of participants/Percentage ofparticipation (non-consolidated)* Targets: Small- to mid-sized companies which weinteract with regularly〇

Local Community

Implementation percentage ofcommunity activities and dialogs at
production sites (consolidated)

100%

100%

100%

〇

Promotion of Yokohama
Forever Forest

Number of trees planted per year
(cumulative)/Percentage of goal met

853,04765.6%

943,78872.6%

997,401
76.7%〇

Market Presence

Percentage of business locations thathave made salary payments exceeding
the minimum wage (consolidated)

100%

100%

100%

〇

Yokohama Rubber Group at a Glance

27,428

Number of employees

Number of applicable subsidiaries

122

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

30

countries

Europe14
Number of people︓1,139

North America

11
Number of people: 2,932

Major business sites:

Major business sites:

Japan

35
Number of people: 10,207
Major business sites:

Asia

30
Number of people: 12,916
Major business sites:

Latin America

3
Number of people: 234
Major business sites:

Change in Sales Ratio

Sales by Region

Japan

Others113.1

Overseas(％)

100billion yen(17.4%)

90
80

Asia

Japan
Sales by
270.2
Customer Location
billion yen(FY2019)(41.5%)

92.3

billion yen(14.2%)

70

52.8

52.1

58.6

58.0

58.5

47.2

47.9

41.4

42.0

41.5

2015

2016

2017

2018

2019 (FY)

60
50
40
30

North America

20

174.9

10

billion yen(26.9%)

0

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

Total Assets and Equity Ratio (consolidated)

Net Sales(Japanese Standards)

Profit Attributable to Owners of Parent(Japanese Standards)

Total Assets(Japanese Standards)

Equity Ratio(Japanese Standards)

Sales Revenue(IFRS)

Profit Attributable to Owners of Parent(IFERS)

Total Assets(IFRS)

Ratio of Equity Attributable to Owners of Parent(IFRS)

Sales revenue

Profit Attributable to Owners of Parent*1(JPY billion)

700
600

668.1 646.3

629.9
596.2
36.3

574.0

35.2

(JPY billion)

40.0

650.2 650.5 42.0
35.6

500

Total Assets

Equity Ratio*2(%)(JPY billion)

45

1,000

40

900

35

800

30

700

47.7
710.7

903.0 888.9
38.6 38.1

929.0 920.8
41.3
41.3

855.8
43.7

907.6
46.2

50
45
40
35

600

30

500

25

400

20

300

15

10

100

200

10

5

100

5

0

0

400

25

18.8

300
200

20
15

9.4

2015

2016

2017

2018 2019 (FY)

*1: Profit Attributable to Owners of Parent under IFRS

0

2015

2016

2017

2018 2019 (FY)0

*2: Ratio of Equity Attributable to Owners of Parent under IFRS

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
towards tire safety and local communities

ar

rb

sh

ng

on

us

soc

All o fie ty.

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 programme – to support CSR initiatives acrossthe globe. The Chelsea Foundation uses the power of football and sport tomotivate, educate and inspire. One of the Foundation’s core activities ishosting football-coaching events for young people in their communities.
During the 2018-2019 season, the Chelsea Foundation continued tosupport Yokohama Rubber’s community activities using its International
Development coaches to provide soccer schools for local children near
Yokohama Rubber Group tire manufacturing facilities around the world,
including Russia, the U.S.A., and the U.K. The Yokohama x Chelsea
Foundation activities also provide significant local media exposure, helping
to raise Yokohama Rubber’s brand awareness in key markets.
Yokohama Rubber, together with the Chelsea Foundation, continues tosupport the club’s first community development project in the U.S., New
York’s FC Harlem. This initiative provides opportunities for young people
with limited economic means to enjoy soccer in a safe environment.
In the U.K., Yokohama Rubber has continued to collaborate with Chelsea
to remind fans of the importance of vehicle safety inspections. In
partnership with U.K. road safety charity “Tyre Safe”, advertising on matchdays at Stamford Bridge highlights to the public the need for regular tiresafety checks. Yokohama Rubber will continue to collaborate with Chelsea
FC in the future, endeavoring to make a positive contribution to both tiresafety and local communities.

i

to

g et

h e r t o cre ate a l

ow

-c

a

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.

Soccer schools(Top) Russia (Center) Harlem, New York, U.S.A.
(Bottom) Needham, Massachusetts, U.S.A.