ENVIRONMENTAL REPORT
2003

Corporate Data

Contents
Corporate Data / Note Concerning Publication of this Environmental Report

1

Yamaha’s Policy on the Environment/History of Environmental Initiatives

2

Foreword

3

Corporate Principles/Regarding Environmental Report 2003

4

Environmental Management
Results of Activities in FY2002

5

Material Balance

6

System of Promotion/ISO 14001/Environmental Training and Education

7

Environmental Accounting

9

Environmental Risk Management

10

Environmental Audits

12

Environmental Considerationsin the Product Development Stage
Management of Chemical Substances Contained in Products / Promotion of Green
Procurement / Introduction Of LCA / Product Resource and Energy Conservation

13

Reduction of Environmental Impact of Parts and Raw Materials

15

Recyclability Improvement

16

Environmental Considerationsin the Production Stage
Responses to the PRTR law

17

Reduction and Recycling of Waste / Prevention of Global Warming and Energy Conservation

18

Reduction of Alternative Fluorocarbons /Reduction of Water Consumption and Reuse

19

Environmental Considerations in the Packaging and Distribution Stage

20

Company outline (as of March 31, 2003)
Company name: Yamaha Corporation
Head office:10-1, Nakazawa-cho, Hamamatsu Shizuoka 430-8650, Japan
Date of establishment:1887
Incorporated:
October 12, 1897
Representative: Shuji Ito, President
Paid-in capital: 28,533 million yen
Results (April 2002 - March 2003)
Unconsolidated : Net sales:
334,078 million yen
Ordinary income: 22,218 million yen
Net income:
7,706 million yen
Consolidated : Net sales:
524,763 million yen
Ordinary income: 33,839 million yen
Net income:
17,947 million yen
Primary Businesses:•Musical instruments:Pianos, digital musical instruments, wind, string and percussion
instruments, educational musical instruments, professional audio equipment,soundproof rooms, music schools, English schools, content distribution, tuning•AV&IT: Audio products, IT equipment•Lifestyle-related: System kitchens, system bathrooms, washstands, furniture,parts for housing facilities•Electronic equipment and metals: Semiconductors, speciality metals•Recreation: Management of sightseeing facilities, accommodation facilities, ski
resorts and sports facilities•Other: Golf products, automobile interior components and fittings, industrial robots,molds and magnesium parts
Number of employees: Consolidated 18,547
Unconsolidated 6,109
Number of consolidated subsidiaries: 84 (including overseas companies)
Number of companies accounted forby the equity method: 2

Net Sales (Consolidated)

Ordinary Income (Consolidated)

Billion of yen
700

Billion of yen
40

600
30
500

Relations with Employees

20

300

10

200

Strengthening Compliance21

Personnel System

21

Safety and Health

21

0

100
0

’98

’99

Popularization of Music

22

Communication

22

’00

’01

’02

Breakdown of Net Sales
by Business (Consolidated)

Lifestyle-Related

11.5%
AV&IT

–10

’98

524.8
billion yen

’99

’00

’01

’02

(FY)

Breakdown of Net Sales
by Region (Consolidated)
Asia, Oceania, Other 6.2%

Europe8.8%Electronic
Equipment
Metal Products Net Sales

22

(FY)

Others 4.0%

Recreation 4.0%

Relations with Society

Social Contribution Activities

400

14.6%
MusicalInstruments

55.8%

Breakdown
North of Net Sales
Americaby Region
16.9%

Japan

62.3%

15.9%

Note Concerning Publication of this Environmental Report
In compiling this Environmental Report, Yamaha Corporation utilized the Environmental Reporting
Guidelines published by the Ministry of the Environment and made reference to the Sustainability
Reporting Guidelines of the Global Reporting Initiative (GRI).

For enquiries concerning this Report, please contact:
YAMAHA CORPORATION

Scope of reporting:Domestic production factories and affiliated companies of Yamaha Group

Environmental Planning Section
Environmental Management Division

Main changes from FY2002 Report:
1) More comprehensive reporting of Group companies
2) Inclusion of initiatives in compliance and personnel system, as well as communication andcontributions to communities
3) Inclusion of section on Environmental Risk Management

10-1, Nakazawa-cho, Hamamatsu
Shizuoka 430-8650, Japan
Tel: 81-53-460-2834
Fax: 81-53-466-3598

This report covers FY2002 (April 2002 to March 2003).
Some items may include more recent information in order to explain progress subsequent toMarch 2003.

e-mail eco-rep@post.yamaha.co.jp
For further information please visit our website below:
http://www.global.yamaha.com/

The next Environmental Report is scheduled to be published in July 2004.

1

Yamaha’s Policy on the Environment and History ofEnvironmental Initiatives

History ofEnvironmental
Initiatives

Yamaha has positioned environmental preservation as a priority
corporate activity and in 1994 adopted Yamaha’s Policy on theEnvironment as an expression of the company’s fundamental thinking on
the environment. Since then, Yamaha has taken every opportunity topromote this policy among its employees through training and education.

1974
1975

Established the Environmental Management
DivisionStarted company-wide energy
conservation activity
Started local clean-up activity

1981

YAMAHA’S POLICYON THE ENVIRONMENT

Started electrical power generation usingwood chips (at Tenryu Factory)

1990

Completely abolished the use oftrichloroethylene and tetrachloroethylene

1993

Abolished the use of specified CFCs and trichloroethane

PremiseMarket debut of the Silent Piano that takes living space
into consideration; the first of a series of instruments
developed and marketed as The Silent Series

Earth exists not only for those of us who currently live on it, butalso for our descendants. We must live in a way that will
ensure a future for our children and grandchildren. It is,therefore, our duty to protect our valuable environment so that
all living creatures can continue to live on this planet forever.

1994

Created Yamaha’s Policy on the Environment and the Action
Policy1995

Started recycling and reuse of waste casting sand1997

Announced intention to acquire ISO 14001 certification

Created the Environmental Committee and five specialist groups

PolicyYamaha’s corporate objective is to continue to create ‘Kando’
and enrich culture with technology and passion born of soundand music, together with people all over the world. We have tobe aware that corporate activities are deeply related to theenvironment, and we at Yamaha acknowledge our responsibility
to nature. We are dedicated to enriching people's lives andhelping to preserve the environment as we live together
harmoniously in society.

Yamaha Kagoshima Semiconductor Inc. becomes the first
YAMAHA company to acquire ISO 14001 certification
1998

Kakegawa Factory acquires ISO 14001 certification
Started disclosure of information regarding soil contaminationby chlorinated organic solvents and initiated countermeasures

1999

Iwata Factory and Saitama Factory acquire ISO 14001
certification
Started ISO 14001 certification acquisition support
business
2000

The Six Principles of Yamaha’s Corporate
Environmental Activity

Toyooka Factory acquires ISO 14001 certification
Published the first edition of Yamaha Environmental
Report

1. Make efforts to develop technology and provide products thatwill be as sensitive as possible to the earth's animals, plants
and environment.
2. Promote energy-saving activities and make effective use ofresources in the areas of research and development,
production, distribution, sales and service.
3. Minimize and recycle waste products, and simplify waste
disposal procedures at each stage of production anddistribution, as well as during and after use.
4. Strictly follow environmental rules and regulations, encourage
environmental protection activities, and ensure the well-beingof employees and citizens by practicing sound environmental
management.
5. In developing operations overseas, make environmental
protection a priority through investigation and understandingof the environmental standards of the host country.
6. Actively distribute information, contribute to the communityand carry out educational activities concerning environmental
preservation.

Introduced environmental accounting
Completed soil remediation measures; continued
purification of groundwater
2001

Main Factory and Tenryu Factory acquire ISO
14001 certification(All factories in Japan acquire ISO 14001
certification)

2003

All YAMAHA manufacturing bases in Japan andoverseas acquire ISO 14001 certification

Yamaha’s Community Activities Praised by External Organization
Yamaha has been selected as a component of the FTSE4Good Global Index, a representative global
indicator of social responsibility investment.
The FTSE Group originated as a joint venture between the Financial Times and the London Stock
Exchange and evaluates ethical, social and environmental criteria. In FY2002, 617 companies (including
60 Japanese companies) were selected, and Yamaha was selected for the second consecutive year.

2Foreword

Foreword
Ten years after the 1992 Rio Earth Summit (United Nations Conference on Environment and Development), theWorld Summit on Sustainable Development was held in Johannesburg in August of last year.
The World Summit was intended to review activities during the past decade and to agree on a global action plan
geared towards achieving sustainable development. At the summit, it was emphasized that in addition to principles
and plans, real action is also needed. Today, activities intended to create sustainable, recycling-oriented societies
have begun in various areas in countries around the world.
Yamaha has completed the introduction of ISO 14001 environmental management systems and has put in placesystems for promoting environmental conservation activities at all its domestic and overseas production facilities.
Yamaha is also conducting group-wide environmental conservation activities to prevent global warming byconserving energy, to reduce substances harmful to the ozone layer, to conserve resources used in businessactivities, and to reduce waste.
Yamaha believes that the starting point of environmental management, which coordinates business activities andenvironmental conservation activities, is the creation of products with universal characteristics and the provision ofservices that enhance the appeal of products. We also believe that putting this belief into action in all businessactivities from product development to materials procurement, production, sales, and service is the only path that
ensures acceptance of the company by society and ensures sustainable development.
In the future, Yamaha will continue to promote activities intended to improve consolidated group-wide
environmental management based on our corporate principles.
We will continue to play an active role in making the very world we live in a sustainable society so that soundand music can be handed down to peoples around the world for many years to come.

Shuji Ito, President3Regarding Environmental Report 2003

Corporate Principles
Yamaha will continue to create ‘Kando’ and enrich culture with technology and passion born of sound and music,
together with people all over the world.
‘Kando’ is a Japanese word that signifies an inspired state of mind.

To Customers

To Employees

Yamaha will fully satisfy the customer,
by offering high quality products and services,which use new and traditional technologies, as wellas creativity and artistry, and continue to be a
known, trusted and loved brand.

Yamaha strives to create an open atmosphere where
employees can realize goals, be given opportunities, andbe evaluated fairly. Yamaha will be an organization
where employees can demonstrate
their abilities fully, haveconfidence, and earn pride.
Brand Slogan

Creating ‘Kando’
Together
To Shareholders

To Society
Yamaha will give first priority to safety,
and will care for the environment. Yamaha will be agood corporate citizen, and observe laws and work
ethically, developing the economy, and contributing
to local and global culture.

Yamaha will increase the satisfaction andunderstanding of its shareholders by striving for
healthy profits and returns, and by achieving
productivity, using high quality, transparent
management, and practicing disclosure.

Adopted in February, 2001

Environmental Responses Based on New Values
In order to transform from the high-volume production and high-volume consumption society of thetwentieth century to the recycling-oriented society of the twenty-first century, corporations must undertake
responses for environmental conservation based on new values.
Based on Yamaha’s Policy on the Environment and its corporate principles, Yamaha has positioned theenvironment as a priority management issue and is using technology to conduct environmental conservation.
Our activities in the future will include the following priorities:
1. Following the completion of acquisition of ISO 14001 certification by all domestic and overseas
production facilities in FY2002, we will strengthen group-wide consolidation of environmental
conservation activities and promote environmental management.
2. We will promote green procurement and environmentally-friendly design and work to increase
environmentally-friendly products.
3. We will promote further reductions in landfill waste and recycling of waste materials to achieve zero
emissions in 2005.
4. We will strictly observe all applicable environmental laws and regulations as well as voluntary
management standards.
Based on a strong awareness of our responsibilities as a good corporate citizen, we will ensure that ourenvironmental activities are both sound and effective.

4

Director in Charge ofEnvironmental Affairs

Yoshihiro Umeda

Environmental Management
Results of Activities in FY2002

Activities at domestic production factories and affiliated companies of Yamaha Group are described here.

Goal

Environmental
management
systemProduct
development(product andpackaging)

FY2002 Results

Future Action

Acquisition of ISO 14001 certification by domestic
and overseas affiliates (production and resort
facilities) by FY2002•

Expansion of companies subject to environmental
accounting•

Promotion of environmental education and training• Hold internal environmental auditor training
Internal environmental auditor training
27 employees of Yamaha and 33 employees of affiliates
seminars (4 times)• Hold training programs to raise the level of internal
received certification (502 persons certified)• Environmental Seminar (330 participants)
environmental auditors•Hold Environmental Seminars“Communication between Companies and Communities•
in the Twenty-First Century”
Hold Product Environmental Seminars• Product Environmental Seminar (190 participants)• Conduct new employee training
Responses to RoHS(EU Directive on Restriction of the Use ofHazardous Substances in Electrical and Electronic Equipment)• New employee training• Training on environment-related laws (factory patrols)

Promotion of the development of environmentallyfriendly products and implementation of LCA•

Reduction in packaging materials by the following
amounts compared to FY1999 levels by FY2002• Wood-based packaging materials: 59%reduction• Foam cushions: 27% reduction• Polyvinyl chloride (PVC) packaging material: 68%
reduction• Continuation of activities toward reduction of
Usage compared to FY1999 levels:• Wood-based packaging materials: 55% reduction
wood-based packaging materials, and foamcushions(6.5% increase from the previous year)• Foam cushions: 6.2% reduction (9.7% less than the previous
year)• PVC packaging material: 76% reduction (59% less than theprevious year)

Green procurement Promotion of green procurement

All production affiliates acquired ISO 14001 certification•

Acquisition of ISO 14001 certification by all resortcompanies in FY2003

Expanded to encompass domestic production affiliates•

Expanded to encompass all production affiliates•• Introduce internal approval system for
Shipments of products that use lead-free solder begun
environmentally-friendly products
Formaldehyde-free materials used in piano construction• Achieved standby power consumption of 1W or less by home • Expand the use of lead-free solder•
theater products
Implement responses to RoHS
• Light-weight wooden sound insulating flooring for use in• Increase the number of environmentally-friendly
apartments developed
products• Eliminated the use of PVC in kitchen products• Implement LCA
Internal LCA training held•

• Expand surveys to overseas suppliers
Yamaha Green Procurement Standards Issued• Put the procurement standards into practice
Surveys of main domestic suppliers conducted• Standards concerning the use of certain chemical substances • Expand the type of products subject to green
in products adopted
procurement• Heavy metals eliminated from painting and printing materials• Chrome-free sheet metal adopted• Use of lead in electronic component terminals eliminated••Prevention of
global warming

1% improvement in CO2 emissions per unit of sales
compared to FY2001

CO2 emissions per unit of sales:
1% improvement over the previous year (2.4 t-CO2/billion yen)
(CO2 emissions: 105,000 t-CO2/year)•

Protection of theozone layer

Elimination of the use of substitute CFCs by 2010

Volume used: 11% reduction from the previous year
(1.7 tons/year)

Elimination of the use of substitute CFCs by 2010

Waste

Reduction of waste disposal volume and promotionof recycling

Waste disposal volume: 8% reduction from the previous year
(4,200 tons/year)

Achieve 1% improvement in CO2 emissions perunit of sales over the previous year•

Achieve zero emissions at factories on an
unconsolidated basis in 2005•

Reduction in discharge volumes of substances
subject to PRTR
Create control standards for chemical substances

Volume recycled: 2% increase over the previous year (64%)

Chemical
substances

Reduction in discharge volumes of substances
subject to PRTR

Discharge volumes of substances subject to PRTR: 10%
reduction from the previous year (151 tons/year)•

Reduction in the discharge volume of formaldehyde
by 64% by FY2003 (compared to FY1995)

75% reduction compared to FY1995(36% reduction compared to the previous year)
Volume discharged: 76 kg/year•

Reduce the discharge volume of formaldehyde by
5% from the previous year

Ground water
remediation

Continue remediation of ground water

Reduced ground water contamination to 1/3 or less of initiallevelsAchieved better levels than environmental standards in some
areas

•

Continue remediation of ground water using a
pumping method and by filtering through activatedcharcoal

Information
disclosure
Communication
Socialcontributions

Enhance scope of information in the environmental
report•Consolidated reporting by domestic production affiliates
Addition of corporate social responsibility• Addition of environmental risk management

•

•

•

Expansion to all production affiliates .
Increase reporting on corporate social
responsibility

Implementation of local clean-up activities•

830 persons participated in local clean-up activities•

Continue participation in local clean-up activities

5Environmental Management

Material Balance
Environmental Impact Arising from Business Activities and Action Toward Realizing a Recycling-Oriented Society
Yamaha Group has some impact on the global environment in all phases of its business activities including productdevelopment, procurement of parts and materials, production, sales, distribution, use of products by customers, and disposal.
Within these processes, various resources are used, and different forms of energy including electricity, oil, and water are
consumed.
In order to express more clearly the relationship between business activities and environmental impact, Yamaha determines
the material balance between the volume of materials input and the volume of materials output, while working to reduce
environmental impact in every phase of the product lifecycle.
( ) indicatesyear-on-year change

CO2 Emissions
105,000 t- CO2( ) indicatesyear-on-year change(+7%)

EnergyElectricity

190 million kwh

NOx Emissions(+6%)

185 tons

Heavy oils

13,000 kL (+32%)

LPG

3,000 tons (+17%)

SOx Emissions
20 tons

Volume of Waste Output( ) indicatesyear-on-year change

Water Consumption
2.83 million m3(+3%)

Tap water

99,000 m3(+2%)

Industrial-use water

47,000 m3(–5%)

Ground water

2.68 million m3

(+5%)

Total

Volume generated

11,700 tons(–8%)

Volume disposed

4,200 tons(–8%)

Volume recycled

7,500 tons(–5%)

Volume of Chemical Substances Discharged
151 tons(–10%)

Volume of Money Back Recyclable Substances
2,900 tons(+32%)

Volume of BOD Discharged
Public water system areas

11 tons( ) indicatesyear-on-year change

Usage of Chemical Substances
907 tons

Wastewater(–3%)

Public water system areas

Input Items
Electricity
Heavy oils
LPG
Water
Chemical substances

1.86 million m3

Output Items
CO2Electric power purchased from power companies
Heavy oils used as a source of energy
LPG used as a source of energy
Tap water, industrial use water, ground water
Substances subject to PRTR*

NOX
SOX
Waste

Waste disposal
Chemical Substances
Money Back
Recyclable Substances
BOD*PRTR Law: Law to promote the determination of the volume of designated chemicals being
released to the environment and improvement of their control (also known as Chemical SubstanceControl Promotion Law), enacted in Japan in 2002.
PRTR = Pollutant Release and Transfer Register

Carbon dioxide generated as a result of electricity, gas and fuelconsumption
Nitrogen oxides generated as a result of gas and fuel consumption
Sulfur oxides generated as a result of fuel consumption
Waste specified by the Waste Management and Public Cleansing Law
including sludge, waste oil, waste acid, waste alkali, waste plastics,
metals, ceramics, ashes, etc.
Waste that cannot be recycled
Substances subject to PRTR

Waste that is purchased by a company
The amount of oxygen required by micro-organisms to(Biochemical Oxygen Demand) decompose the organic substances in wastewater
WastewaterIndustrial wastewater or sewage

6

System of Promotion/ISO 14001/Environmental Training and Education
Organization for Environmental
Activities

Roles of the Environment
Committee andits Subcommittees

Environmental Committee
Chairman: Director in Charge ofEnvironmental Affairs
Secretariat: Environmental
Management Division

Yamaha established the Environmental
Management Section (currently theEnvironmental Management Division) in 1974,
and in 1994 created the Environmental
Committee with the director in charge ofenvironmental matters serving as its chairman.
Since then, the Environmental Committee has
adopted policies, set goals, and promoted andevaluated activities, while five separate groups
address individual issues.
Product
AssessmentGroup

ODS Group

Packaging Group

Industrial Waste
Group

Saving-Energy
Group

Overseas OfficeEnvironmental
Issues Liaison
Network

Related-Company
Environmental
Liaison GroupAll YAMAHA Manufacturing Bases inJapan and Overseas Acquired ISO
14001 Certification
Following the completion of acquisition of
ISO 14001 certification by the Yamaha Head
Office and all domestic manufacturing bases in
FY2000, Yamaha Group has been expanding
certification to domestic and overseas affiliates.
In FY2002, three domestic and eight overseas
companies acquired certification. As a result,
all manufacturing bases throughout the world
have now acquired certification.

Xiaoshan Yamaha (China)

Yamaha Musical Products, Inc. (U.S.A.)

7

Environmental Management

Acquisition of ISO 14001 Certification

Environmental Training and Education

YamahaFacility

Date Acquired

Kakegawa Factory

Nov. 1998

Iwata Factory

Mar. 1999

Saitama Factory

Sep. 1999

Toyooka FactoryJun. 2000

Main Factory

Feb. 2001

Tenryu Factory

Mar. 2001

Affiliates in Japan
Facility
Yamaha Kagoshima Semiconductor Inc.

Date Acquired
Nov. 1997

Yamaha Metanix Corporation

Mar. 1999

Yamaha Music Craft Corporation

J u l . 2000

D.S. Corporation

Feb. 2001

Yamaha Livingtec Corporation

Dec. 2001

YP Winds Corporation

Feb. 2002

Sakuraba Mokuzai Co., Ltd.

Sep. 2002*

Resort Companies
Date Acquired

Facility

In order to raise awareness and increase knowledge concerning the environment inGroup companies, Yamaha holds rank-specific general and specialized training. Yamaha
also promotes the acquisition of environment-related public qualifications andenvironment-related certifications and encourages participation in a variety of external
specialized courses and study groups.
In FY2002, training was conducted as indicated in the table below.
Yamaha also provides environment-related information including information on
environmental activities and recent regulatory trends in company newsletters and on the
Intranet. Yamaha takes every opportunity to actively conduct environmental training andeducation.

President Ito addressing participantsat the Environmental Seminar

Katsuragi Corporation

Nov. 2001

Nemunosato Corporation

Feb. 2002

Environmental Training

Kiroro Associates Corporation

Feb. 2002

General Training

Tsumagoi Corporation*

Jan. 2003*

Mar. 2003

Toba International Hotel Corporation

Overseas Affiliates
Facility

Date Acquired

Yamaha Electronic Manufacturing (M) Sdn.Bhd. (Malaysia)

Dec. 1998

Kaohsiung Yamaha Co., Ltd. (Taiwan)

Nov. 1999

Tianjin Yamaha Electronic Musical Instruments, Inc. (China)

Dec. 1999

Yamaha Music Manufacturing, Inc. (U.S.A.)

Dec. 2000

P.T. Yamaha Musical Products Indonesia (Indonesia)

Jan. 2001

Yamaha Electronique Alsace S.A. (France)

Mar. 2001

P.T. Yamaha Music Manufacturing Indonesia (Indonesia)

Dec. 2001

Yamaha Musical Products, Inc. (U.S.A.)
P.T. Yamaha Indonesia (Indonesia)*

Apr. 2002*

May 2002

Taiwan Yamaha Musical Inst. Mfg. Co., Ltd. (Taiwan) *Jun. 2002

P.T. Yamaha Music Manufacturing Asia (Indonesia)*

Jul. 2002

Guangzhou Yamaha-Pearl River Piano Inc.
(China)*Sep. 2002

Kemble & Company Ltd. (U.K.)*

Dec. 2002

P.T. Yamaha Electronics Manufacturing Indonesia*(Indonesia)

Jan. 2003

Xiaoshan Yamaha Musical Instrument Co.,Ltd.
*(China)Mar. 2003* Acquired certification in FY2002

Product Environmental Seminar

Title

Participants

New employee training

New employees

Yamaha Advanced Skill School(Environmental management)

Employees assigned to the Yamaha
Advanced Skill School

Yamaha Technical Training Center

Employees assigned to the Yamaha
Technical Training Center

ISO 14001: General training

All employees of divisions that haveacquired ISO 14001 certification

Environmental Seminar: Communication
between Companies and Communities
in the Twenty-First Century

Directors and all employees

Specialized Training
Title

Participants

Seminar on environmental laws

Environmental managers andrelated departments at factories

Internal environmental auditor training

Persons planning to become internal
environmental auditors

Training to improve the skills of internal
environmental auditors

Internal environmental auditors

Wastewater treatment facility operation
manager training

Wastewater treatment facility
operation managers at each factory

Internal green procurement seminar

Persons in charge of procurement

Lead-free technology briefing

Design engineers

Product environmental seminar: RoHS(The EU Directive on Restriction of the
Use of Hazardous Substances in Electricaland Electronic Equipment)

Engineers

LCA seminar

Product assessment personnel

LCA study group

Product assessment personnel

ISO 14001 special training and courses

Employees in charge of each process

8Environmental Accounting
FY2002 Environmental
Accounting Results
From FY2002, the scope ofenvironmental accounting was expandedfrom Yamaha Corporation on an
unconsolidated basis, to all domestic
production affiliates.
Environmental Costs
Environmental investment in FY2002,
for updating wastewater treatment
facilities, etc. was 490 million yen on adomestic consolidated basis. On an
unconsolidated basis, environmental
investment was 300 million yen, adecrease of 6 million yen from FY2001.
Environmental expenditure, forappropriate disposal and recycling ofwaste, etc. was 2.98 billion yen, on adomestic consolidated basis and 2.12
billion yen on an unconsolidated basis, anincrease of 36 million yen from FY2001.
(1) Environmental Effects
In conjunction with an increase inGroup production, CO2 emissions
increased by 7,000 tons-CO2 and water
consumption increased by 100,000m3.
As a result of the effects of exhaustprocessing equipment, however, thevolume of chemical substances released
decreased by 16 tons and increased
recycling reduced the waste disposal
volume by 350 tons.
(2) Economic Effects
As a result of energy conservation
activities, purchase of electricity decreased
and utility expenses were cut by 17
million yen. Although the waste disposal
volume was reduced, an increase in theprocessing cost per unit of waste resulted
in a 12 million yen increase in waste
disposal expenses. In addition, the sale ofmoney-back items resulted in an incomeof 64 million yen.

Costs and Effects
Scope of accounting: Yamaha on an unconsolidated basis and domestic production affiliates
Period: April 1, 2002 - March 31, 2003

Environmental Costs
Classification(Unit: million yen)
Investment*1

Details

Expenses*2

Consolidated (Unconsolidated) Consolidated (Unconsolidated)
1. Pollution prevention
Prevention of air, water and soil pollution, etc.
Businessarea
2. Energy conservation, etc. Prevention of global warming, protection of the ozone layer, etc.
costs
3. Waste, etc.
Waste processing, recycling, conservation of water, etc.

197.3

167.0

552.2

151.3

80.2

102.0

78.8

137.6

50.8

736.9

471.6

390.5

Upstream/downstream costs

Recycling of products, improvements in distribution, etc.

0.1

0.1

184.0

113.8

Management costs

Environmental education, ISO 14001, greening of premises
Monitoring of measurements, information disclosure, etc.

1.5

1.4

742.9

581.8

Research and development costs

Development of environmentally-friendly products,
specifications, etc.

---

---

601.9

441.6

Social activities costs

Social contributions, etc.

0.0

0.0

33.0

24.1

Environmental damage remediation costs

Groundwater remediation, etc.

3.2

3.2

31.3

13.9

491.0

302.7

2984.22116.1Total*1. Investment amount refers to investment in factories and equipment made with environmental preservation objectives.
The figure is calculated by multiplying the purchase price by a quantity determined by the proportions of the objectives ofpurchase (e.g., 0.1, 0.5, 1.0).
*2. Expenses refer to personnel and other costs expended for environmental preservation activities. Personnel expenses arecalculated by multiplying the time spent on environmental preservation activities determined by the manager of eachdepartment by a common unit. Costs are determined by multiplying the amounts paid externally by a certain quantity asin the case of investment amounts (e.g., 0.1, 0.5, 1.0). Depreciation costs are not included.

Economic Effects

Environmental Preservation Effects
Details(Unit)(Million yen)

FY2001

FY2002 Change

Details

Amount105,000 +7,000

Saving from utility costs

17

t-CO2

98,000Million m3

2.73

2.83

+0.1

Saving from water conservation

Waste disposal volume *3

t

4,600

4,200

-400

Waste disposal expenses

Volume of chemical substances released *4

t

167

151

-16

Total savings

7*3. Waste disposal expenses include subcontracting expenses, recycling
expenses, and internal interim processing expenses.
*4. Chemical substances refers to chemical substances subject to PRTR
that are used by Yamaha.

Income from sale of money-back items

64

Economic Effects

71

CO2 emissions volume
Water consumption

Environment-Related Capital Investment
Unconsolidated
Affiliates(Million yen)2
-12

Environmental Expenses
Unconsolidated
Affiliates(Million yen)
3,000

500
188

868
2,500

400
2,000
2,103

300
309
200

100

0

303

240

2,116

1,500

’01

’02

1,000

148

’99

2,080
1,765

500

’00

’01

’02 (FY)

0

’99

’00

(FY)

Future Action
Yamaha Group is promoting the use of environmental accounting as an environmental management tool in an effort to reduce
environmental impact while continuing business activities. In the future, we will expand the scope of consolidated environmental accounting
to include overseas affiliates and create indexes of environmental performance to enhance internal environmental management andaccounting.
9

Environmental Management

Environmental Risk Management
Leakage Accident Prevention Measures

Reduction of Volume of Stored Chemical Substances

Yamaha Group has implemented measures to prevent leakage ofchemical substances in the case of earthquakes or other accidents.
In FY2002, a fluid-retention barrier was installed at thewastewater treatment facility in the Saitama Factory.
Additionally, in the wind instrument production process at the
Toyooka Factory, the size of the nickel chemical bath was reduced
to 1/3; it was made more resistant to earthquakes, and a fluidretention barrier was installed.

An upper limit for the volume of each chemical substance to be
stored is specified, and the actual volume is maintained at or
below this level.
In the Head Office region, Yamaha implemented storage
volume reduction and in FY2002 reduced the total storage volume
to 2/3 of the FY1999 level.

Storage of chemical substances
Fluid-retention barrier at the wastewater treatment facility
in the Saitama Factory

Emergency-Response Training

Stricter Management of Poisonous/Deleterious
Substances

Yamaha Group conducts emergency-response training on aregular basis. For example, in a training session involving a mockleakage accident, actual conditions are simulated by spilling waterand through other means. Any problems in the emergencyresponse procedure are corrected, thus improving the level of risk
management.

At Yamaha, poisonous/deleterious substances are strictly
managed according to the Chemical Substance Control Rules.
The management structure has been further enhanced by, forexample, introducing a computerized monitoring system.
In FY2002, the following measures were implemented
throughout the entire Yamaha Group:(1) More careful handling of substances designated in the
Poisonous and Deleterious Substances Control Law(72 poisonous substances and 289 deleterious
substances) and other chemical substances.
(2) Adherence to legal procedures during purchasing ofchemical substances; proper management using
dedicated storage areas; strict implementation of
measures to prevent theft/leakage/accidental
discharge; daily accounting of purchased, used, andremaining volumes; and neutralization before disposal.

Training for handling underground tank leakage(Katsuragi Corporation)(3) Cooperation with the biannual volume audits
conducted by Yamaha Environmental Management
Division and implementation of any corrective actions
identified.

10

PCB Storage

Remediation of Ground Water

In accordance with the Law Concerning Special Measures
Against PCB put into force in 2001, all Yamaha Group operations
throughout Japan re-checked the capacitors and stabilizers
containing PCB and reported the quantities and other details to thegovernment.
PCB is controlled according to the PCB Control Standard and isstored in leak- and theft-proof locations.

With respect to the status of remediation measures to clean
ground water at two factories and one affiliate, where the presenceof chlorinated organic solvents was voluntary disclosed in
November 1998, contamination levels have already been reduced
to about 1/3 or less of initial figures, and in some areas have been
restored to levels better than environmental standards.
Yamaha will continue to implement remediation measures toachieve further improvements.

PCB storage
Remediation facilities (Main Factory)

Environment-Related Accidents/Litigation

Environmental Measurements and Environmental
Technology Center

In FY2002 also Yamaha Group was not subject to any
environment-related fines or penalties. It was also not involved in
any litigation.
There were, however, two accidents that had an impact outside
the company. Responsive measures were immediately taken, thecauses determined, and permanent measures implemented.

To comply with laws and further reduce substances ofenvironmental concern, Yamaha Group has established voluntarystandards on wastewater, exhaust emissions, noise, vibration,
offensive odors, etc. that are stricter than legal regulations.
Environmental measurements are taken by trained staff
members of the Environmental Technology Center. The Center
provides guidance on environment-preservation technologies andis developing technologies for reducing substances ofenvironmental concern in production processes.

Accidents that Resulted in External Impact

Wastewater analysis at theEnvironmental Technology Center

11

Details of the Accidents

Response Measures•Processing of chemicals following
disinfection of wastewater
processing facilities wasinadequate. As a result some of
the chemicals remained and werereleased into a wastewater
discharge pipe.

•A manual of procedures formaintenance work was preparedand training was conducted toclarify the key points for nonperiodic maintenance.
•A report was made to theadministrative authorities.

•Reducing agents flowed into a
wastewater processing area andthe volume of iodine consumed
exceeded the sewage standards.

•A report was immediately made to
the administrative authorities
concerning tentative measurestaken and future investigations of
the causes and countermeasures.
•Functions for processing reducing
agents were added, a manual of
guidelines created, and training
conducted.

Environmental Management

Environmental Audits
Environmental Audits

Environmental Patrols
On June 6 and 13, 2002, environmental patrols were conductedat Yamaha’s six production factories in Japan. Groups made up ofinternal environmental auditors from each factory and staff of theEnvironmental Management Division made reciprocal on-site
inspections of environmental facilities at each factory.

Yamaha Group environmental audits include external audits
based on ISO 14001 standards and internal audits of each site aswell as “environmental patrols” conducted during Environmental
Month each June where auditors from each plant conduct
reciprocal audits.
External Audits
In FY2002, external audits were conducted at 18 sites (12domestic affiliates including resorts and other companies).
The audit results indicated six areas that needed improvement,
and the companies involved immediately took corrective measures
to improve the systems indicated.
Internal Audits
In FY2002, internal audits of 18 sites were conducted.
Corrective measures were taken with respect to all matters inneed of improvement. The measures were also expanded to otherdivisions to achieve overall improvements.

Environmental patrol (Main Factory)

Improvement Items Indicated by Environmental Patrols in FY2002

Yamaha’s Production Factories in Japan
Factory

Date audited

Audit typeKakegawa Factory

Oct.02

Periodic surveillance

Iwata Factory

Dec.02

Periodic surveillance

Saitama Factory

Aug.02Update audit

Toyooka Factory

May 02

Periodic surveillance

Main Factory

Feb.03

Periodic surveillance

Tenryu Factory

Feb.03

Periodic surveillance

Date audited

Periodic surveillance

Yamaha Metanix Corporation

Mar.03

Periodic surveillance

Yamaha Music Craft Corporation

Jul.02

Periodic surveillance

D.S. Corporation

Jan.02

Periodic surveillance

Yamaha Livingtec Corporation

Nov.02

Periodic surveillance

YP Winds Corporation

Feb.03

Periodic surveillance

Katsuragi Corporation

Oct.02

Periodic surveillance

Nemunosato Corporation

Oct.02

Periodic surveillance

Kiroro Associates Corporation

Feb.03

Periodic surveillance

Sakuraba Mokuzai Co., Ltd.

Aug.02Main audit

Tsumagoi Corporation

Dec.02Main audit

Toba International Hotel Corporation

Mar.03Main audit

37

Water quality

10

Chemical substance storage

4

Noise

0

Air

0

Offensive odor

1

Other

4

Total

56

In order to raise the levels of internal audits and environmental
patrols, Yamaha Group is putting its energies into training internal
environmental auditors. In FY2002, 27 Yamaha employees and
33 employees of affiliated companies in Japan acquired internal
qualifications as auditors, bringing the total number of qualified
auditors in Japan to 502.
In addition, in order to raise the skills of employees who havealready acquired qualifications, training to improve the skills ofinternal environmental auditors was held in July 2002.

Audit type

Yamaha Kagoshima Semiconductor Inc. Oct.02

No. of Items

Waste-related

Training Internal Environmental Auditors

Affiliates in Japan
Facility

Category

Training to improve the skills of internal environmental auditors

12

Environmental Considerations in the Product Development Stage

Continuous reducing of environmental
impact by the product through it’slifecycle is one of the most important
steps that a manufacturer can take in orderto build a recycling-oriented society.
Yamaha Group is pursuing resourceand energy conservation, reduction ofenvironmental impact from parts and raw
materials, and recyclability improvementin the product development stage.
In order to reduce the use of chemical
substances, Yamaha Group is taking
various measures, such as setting
standards for the amount of chemical
substances contained in its products andpromoting green procurement.

Resourceandenergy conservation

Reduction ofenvironmental
impactfrom parts andraw materials

Recyclability
improvement

Promotion of Green Procurement
Yamaha Group determines therequirements for parts to be procured
based on the Standards for ChemicalContent in Products established by
Yamaha and using the guidelines set by
JEITA (Japan Electronics and Information
Technology Industries Association) as areference.
Green procurement efforts haveresulted, for example, in the eliminationof lead from the resin coatings of wires
and the adoption of chromium-free steel
plates. The elimination of lead from theterminals of electric parts is also rapidly
progressing with cooperation fromsuppliers.
In the future, Yamaha plans to focus on
the substances covered by RoHS (the EU
Directive on Restriction of the Use ofHazardous Substances in Electrical andElectronic Equipment), which is anespecially important environmental
regulation, and to promote compliance bydomestic and overseas suppliers. (RoHS
will go into effect on July 1, 2006.)

Product Resource and Energy
Conservation
Substantial Reduction in Standby
Power Consumption of AV&ITRelated Products
An important step in reducing CO2
emissions is reducing the power
consumption and standby-power
requirements of AV products, such as
audio equipment, power amplifiers (PA),and home theater systems; and of IT
products, such as routers for broadband
networks and LSI (Large Scale
Integration) chips.
Yamaha reduced the standby power
consumption of nearly all models of hometheater products to 1W or less by FY2002.
In two home theater systems (DVX-S100
and AVX-S80), Yamaha achieved
standby power consumption of 0.4W,
while that of the digital cinema projector
DPX-1000 was reduced to 0.1W.

DPX-1000

Management of Chemical
Substances Contained in Products
Yamaha collected information on andinvestigated the trends in environmental
regulations from around the world tocreate the Standards for ChemicalContent in Products in February 2003.
These standards clearly identify
prohibited substances, restricted
substances, and controlled substances. By
ensuring that the Design Department andProcurement Department strictly adhere
to these standards, Yamaha Group ensureslegal compliance and helps reduce
environmental
impact.

Introduction of LCA
In FY2002, in order to introduce theconcept of LCA (Life Cycle Assessment),
Yamaha held study groups and carried out
LCA analyses for the major products ofeach Department on a trial basis. Whilethese trials helped employees understand
LCA implementation methods, they also
identified problems such as the lack ofparts inventory data. Therefore, YamahaGroup is currently accumulating relevant
data and continuing activities that willlead to the actual application of LCA.

Example of Environmental Initiatives

Green Procurement
When procuring office supplies,
Yamaha gives priority to environmentallyfriendly products and services that use
recycled materials and reduce
substances of environmental concern
during disposal, and are designed withenergy conservation in mind.
In FY2002, YP Video, a subsidiary that
produces catalogs and web sites,
adopted employee uniforms made offibers made from recycled PET bottles.

Employee uniforms made from recycled fibers
Standards for Chemical Content in Products

13

Environmental Considerations in the Product Development Stage

Weight Reduction of the Soundproof
Chamber Avitecs™ (Mini Type)

Development of Lightweight, Wooden,
Soundproof Flooring

Resource Conservation In and PVC
Elimination from Kitchen Products

In October 2002, Yamaha Group
introduced the Avitecs™ (Mini Type)
Series 52, which offers bettersoundproofing performance but is lighterin weight. By improving the shape andpositioning of the sound-absorbing
materials as well as the positioning ofvibration-suppression materials inside thepaneling, Yamaha achieved a weight
reduction of 15% to 20%.
Yamaha also used PVC-free materials
for the walls, ceiling, and door trim.

In October 2002, Yamaha Groupdeveloped the Dry Double Floor for
impact sound insulation (YDF: Yamaha
Double Flooring), which achieves theobjectives of resource conservation,weight reduction, and high soundproofing
performance against heavy weight floor
impact sound. YDF is a flooring systemthat is ideal for use in condominiums andapartments where preventing noisetransmission between floors is important.
YDF is much lighter than conventional
flooring systems.
Yamaha’s newly developed hollow,
wooden paneling is made from a recycledresource called “OSB (Oriented Strand
Board)” in order to help conserve tropicalrain forests.

Yamaha Livingtec Corporation has
established a highly precise technology
for forming artificial marble kitchencounters, thus greatly reducing themachining steps required in the back-end
process. As a result, the volume ofmaterials that must be discarded has been
reduced, achieving resource conservationof at least 10% compared to conventional
processes.
Two-thirds of the scrap machining
chips are crushed and reused as raw
material for kitchen counters. Yamaha
has also completely eliminated PVC fromthe decorative panels on all kitchen
products.

Avitecs™ (Mini Type)

99mm
36mm

Floor

;

Lightweightrigid panel
10kg/m2

DOLCE series D650

Connecting parts
par tsVibration-suppression rubber
1.2 pcs/ m2

Sectional view of YDF

Development of a New Thermoelectric System to Help Reduce Global Warming
As part of the Japanese Ministry of Economy, Trade and Industry’s
initiative, Development of Innovative Technologies to Reduce Global
Warming, Yamaha is proceeding with the development of a thermoelectric
system that uses the Yamaha High-Efficiency Thermoelectric Conversion
Element, which generates electricity using thermal energy. If this new system
is successfully commercialized, it will be able to effectively generate electricity
utilizing energy that is normally wasted as heat. Therefore, this system is
promising as a next-generationenergy-saving technology that canhelp reduce global warming.

Yamaha High-Efficiency
Thermoelectric Conversion Element,
which is being used in the research
on a next-generation
thermoelectric system

Operating Principle of a Thermoelectric Module
Heating & cooling functions
Carries heat
when an electric current is applied

Cold

Hot

Electricity-generating function
Generates electricity
when a temperature difference exists

CoolingHeatingV

14

Resource and Energy Conservation in
Modular Bath Systems
Yamaha Livingtec Corporation has
reduced the weight of the wall material
used in its bath systems by approximately
30%. At the same time, the insulation
performance (resistance to heattransmission) of the wall material has also
been improved by approximately 2.5
times compared to conventional materials,
thereby resulting in energy savings as
well.

Reduction of Environmental
Impact from Parts and Raw
Materials
Elimination of Formaldehyde from
Piano Structural Materials
Sakuraba Mokuzai Co., Ltd. has beenworking on improving the gluing process
for piano structural materials, and has
established and partially implemented a
new gluing specification that eliminates
formaldehyde. As a result, the annual
usage of formaldehyde has been reduced
by approximately 140kg.

Efforts to Eliminate Lead from Solder
In FY2002, Yamaha Group completely
eliminated lead-containing solder fromthe power supply boards of RTX1000 and
RT105e/105p routers. Furthermore, theaudio speaker factory of P.T. Yamaha
Electronics Manufacturing Indonesia
started a dedicated lead-free line andbegan shipping lead-free subwoofers. In
FY2003, a lead-free line will be added to
Yamaha Electronics Manufacturing
Malaysia Sdn. Bhd.
Yamaha Group has also completed
preparations for introducing lead-freesolder into digital musical instruments,
power amplifiers, LSI chips, lead frames
and thermoelectric modules.
Additionally, Yamaha is conducting
research and development aimed ateliminating lead usage in acoustic musicalinstruments, while maintaining the
traditional quality and soundcharacteristics.

Products That Use Lead-Free Solder
Modular bath system NUG model“Sandwich” structure

Grand piano GCISN

Use of Water-based Paint for Interior
Walls of Drums

Insulating material(Polystyrene foam)

Router RT105p

FRP layer
Reinforced water-resistant sheet

Surface layer(decorative sheet+ ABS resin)

25mm

In the painting process for drums(wooden type), the base coat for theinterior walls of the drum body has beenswitched to a water-based paint in allmodels. Furthermore, by using UV-curing
paints Yamaha has reduced the usage of
topcoat paints by approximately 10%.
Subwoofer YST-SW015

Structure of wall material

Subwoofer YST-SW105

Maple Custom
Subwoofer YST-SW205

15

Environmental Considerations in the Product Development Stage

Reduced Usage of Substances
Subject to PRTR
Yamaha Group switched the exterior
paint for electronic keyboards and power
amplifiers to products that are free ofsubstances subject to PRTR, such as
xylene and toluene. As a result, the usageof substances subject to PRTR at painting
subcontractors was reduced byapproximately 400kg/month.
Applicable models- ElectoneTM exterior finish (representative model No.:
EL Series EL100)- Digital piano exterior finish (representative model No.:
CLP955, CVP700, P120, etc.)

Increase in Reconditioned Pianos
Yamaha Piano Service Co., Ltd. buys
back unused pianos, repairs them,refinishes both their interiors andexteriors, tunes them, and sell them as
Yamaha “renewal pianos” with quality
guarantees through authorized Yamaha
dealers (approximately 1,400 units/year).
Yamaha Group also offers a service of
upgrading Yamaha upright pianos to
Silent® pianos by installing silencer units
in them.
These measures prevent these pianos
from being discarded and places themback in market circulation so that they canbe used for their intended lifespan.

In July 2002, Music Lease Corporation
began a new musical instruments rental
system on a trial basis, incorporating theconcept of reuse.
This is an innovative rental system thatallows a customer to choose between new
and used instruments, and also gives thecustomer the option to purchase the leased
instrument, applying the lease charges
already paid toward the purchase price.
Returned musical instruments arecleaned, tuned, and offered again on leaseas used instruments.
Flutes, saxophones, violins, digital
pianos, guitars, etc. and the Silent Series
of instruments are included in the rental
program.

Conceptual Diagramof the Musical Instruments Rental System

ElectoneTM EL100

Recyclability Improvement

Creation of a New Reuse Market
Musical Instruments Rental System

Rental musicalinstruments may
be purchased

Yamaha “renewal piano”

Organs for School Use
Yamaha Group now uses key covers
made of PET resin and steel stands, bothof which are highly recyclable, for theorgans (SE-4000 and SE-3000 models)
used for general music lessons in regularschools. Yamaha Group has also adopted
a fresh new exterior design for the organs,reduced their weight, and achieved better
durability and safety than in the existingmodels.

Customer canselect between
new and usedmusicalinstruments

Reasonablerental charge

Customer

Customer canselect a grade

Rental periodsof 3 months
or longer

Piano reconditioning workshop

Musical instruments rental handbook

SE-4000 organ used for music lessons

16

Environmental Considerations in the Production Stage

Responses to the PRTR* Law
In FY2002, Yamaha Group reduced thetotal volume of substances subject to
PRTR* used at its Japanese production
facilities to 907 tons, down by 26 tons
from the previous year. The volume ofsubstances discharged into theenvironment was reduced to 151 tons,
down by 16 tons from the previous year.
The main substances were styrene,
toluene, and xylene from painting
processes. These three substances
account for 73% of the total usage and
90% of the discharged volume.
Volume of Substances Subject
to PRTR Discharged into the Environment
(t)
180
160
140

Unconsolidated
Affiliates
167
151
59

Reduction of Discharge Volume of
StyreneReduction of Discharge Volume ofFormaldehyde

At the Tenryu Factory, Yamaha
installed a regenerative exhaust-gas heat
treatment system.
This system removes 98% of VOCs
(volatile organic compounds), such as
styrene and toluene, from exhaust gases.
The Tenryu Factory also worked on
reducing the amount of paint used, and in
FY2002 improved its painting efficiency
by 10% through improvements to theautomated painting line for automobileinterior panels.
At the Iwata Factory, which
manufactures piano frames, Yamaha
reduced the volume of styrene discharged
per piano by 15%, by improving the paintformulas and upgrading the painting
robots.

The volume of formaldehyde
discharged to the atmosphere in FY2002
was reduced by 75% from the FY1995
level, achieving the original goal of 64%
reduction (from the FY1995 level) by
FY2003, one year early.
Yamaha will continue to take actions tofurther reduce the discharge volume offormaldehyde.

Formaldehyde Discharge Volume
100
100
75

61

120

(Unconsolidated)

(%)

50

54
50

100
80

45

108
90

60

39

25

40

25

20
0

’01

’02

0

(FY)

*PRTR Law: Law to promote the determination of the volume ofdesignated chemicals being released to the environment andimprovement of their control (also known as Chemical SubstanceControl Promotion Law), enacted in Japan in 2002.
PRTR = Pollutant Release and Transfer Register

’95

’98

’99

’00

’01

Yamaha Group PRTR Results (FY2002)

177
320
227
231
63
283
145
40
230
68
232
310
69
108
144
272
64
270
172
181

(FY)

Regenerative exhaust-gas heat treatment system(Tenryu Factory)

Class 1 designated chemical substances
No.

’02

(Unit: tons)
VolumeHandledSubstance name
558.3
111.1
70.8
71.8
29.2
23.4
7.3
4.6
4.5
4.2
2.8
2.7
2.5
1.9
1.7
1.6
1.4
1.3
1.3
1.1
3.8
907.3

Styrene
Methyl methacrylate
TolueneNickelXyleneHydrogen fluoride and its water-soluble salts
Dichloromethane
Ethylbenzene
Lead and its compounds
Chromium (III)
Nickel compounds
Formaldehyde
Chromium (VI) Compounds
Inorganic cyanide compounds (except complex salts and cyanates)
Dichloropenta fluoropropane: HCFC-225
Bis(2-ethylhexyl) phthalate
Silver and its water-soluble salts
Di-n-butyl phthalate
N,N-dimethylformamide
Thiourea
29 other substances
Total

17

Volume discharged into the environment
Volumedischarged
intoatmosphere

Volumedischarged
intowaterways

Volumedischarged
into
soil

Volumeburiedinsidesites

Volume transferred
Volumetransferred
to sewage

45.2
0.1
62.6
28.5
3.4
1.9
4.5

Consumption,
products,
etc.

4.0
0.3
6.3

509.2
110.6
2.0
71.8
0.7
17.6
5.4
0.1
4.4
0.6
2.3
2.6
2.5
1.9

2.4

0.1
3.6
0.4
0.1

0.2

1.5

0.7
1.3
0.1
1.2
149.0

Other

Volumetransferred
as wastematerial

0.1
2.5

0.0

0.0

0.1
0.1

17.1

1.6
1.4
0.6
1.0
2.4
738.6

Environmental Considerations in the Production Stage

Reduction and Recycling of Waste

Recycling of Wood Chips

Since Yamaha Group produces a wide
variety of products and provides a wide
range of services, it generates many kindsof waste.
Each factory recycles these materials
for use as pavement materials, rawmaterials for use in the cement andceramic industries, and fertilizers, etc.
In FY2002, the total volume of waste
generated reduced by 960 tons from theprevious year to 11,700 tons. The volume
of waste recycled was 7,500 tons, and as aresult, the resource recovery rate was up
by 2% over the previous year to 64%.
The volume of waste disposed of (thevolume of waste materials not recycled)
was down by 350 tons from the previous
year to 4,200 tons.

In FY2002, as a new activity, both the
Kakegawa Factory and Yamaha Livingtec
Corporation began recycling the woodchips generated from production
processes into particleboard.*
Yamaha Group purchases this board
and utilizes it in kitchen components, etc.
Currently, the Kakegawa Factory and
Yamaha Livingtec Corporation together
recycle 100 tons/month of wood chips.
*Particleboard: Board made from crushed wood chips throughPrevention of Global Warming andEnergy Conservation

hot-press formation

In FY2002, CO2 emissions volume by
Yamaha Group at its Japanese production
facilities increased by 7,000 tons to
105,000 tons. However, because of theenergy conservation measures
implemented at all of the factories, theemission volume per unit of sales
improved by approximately 1% over theprevious year to 24.0 tons-CO2/100
million yen.
Total energy consumption was 1,280
TJ*. In terms of energy source, 50% waselectricity, 40% was heavy oil, and 10%
was LPG, natural gas, etc.
*TJ (tera joules) = 10 J
12CO2 Emissions Volume (From Various Energy Sources)
Volume of Waste Generated andResource Recovery Rate

10

(Thousand tons)
20

(%)
100

8

18

90

6

16

80
70

12

60

2

50

0

5.9

5.4

8
6

5.2

5.8

7.4
5.2

’98

’99

’00

4.6

4.7

’01

’02

(FY)

40
9.0

8.6
7.7

4

30
6.7

6.3

’01

’02

2
0

10.1

4

14

10

Unconsolidated
Affiliates(Tons-CO2)

Containers made from wood chips and discarded pallets

20

Energy Consumption Ratio (TJ)

10
’98

’99

’00

0

50

(FY)

Volume generated on an unconsolidated basis
Volume generated by affiliates
Resource recovery rate on an unconsolidated basis
Resource recovery rate on a consolidated basis

Particleboard

Production
process

Electricity
Heavy oil
LPG
Other

142

616

Recycling the wood chips generated
in the production process backinto Yamaha products
Hot-press
formation

Scrap
wood

Collection

18

472

Environmental Considerations
Utilization of Biomass Energy
Yamaha Group has been utilizing
biomass energy* by using the wood scraps
and sawdust generated in its production
processes as boiler fuel.
In FY2002, a new thermal recycling
program was begun that turns sawdust into
pellets for use as boiler fuel at Sakuraba
Mokuzai Co. Ltd. This has improved
combustion efficiency, thus helping
reduce waste by reducing the combustion
residue.
*Biomass energy: Energy derived from renewable biomasssources such as wood

Reduction of Alternative Fluorocarbons
In order to help protect the ozone layer,
Yamaha Group completely eliminated theuse of CFCs in FY1993.
Yamaha has also been promoting the
reduction of alternative fluorocarbons.
The usage volume for FY2002 was 1.7
tons.
Yamaha will continue to promote aswitch to alternative substances that haveless impact on the ozone layer andcontribute more to the prevention of
global warming.
Alternative Fluorocarbons Usage Volumes

3.0

The volume of water used remained
basically the same at 2.83 million m3
compared to the previous year, and theusage volume per unit of sales improved
by 5.3% to 644 m3/100 million yen.
Ground water, tap water, andindustrial-use water accounted for 2.68
million m3; 99,000 m3; and 47,000 m3,
respectively.
Yamaha has also been taking active
measures to reuse water. For example,
the Toyooka Factory treats approximately
80,000 m3 of water discharged fromproduction processes and reuses it in otherprocesses.
Yamaha will continue to carefully use
valuable water resources by enhancing
leak-prevention measures and promoting
reuse.

2.5

Unconsolidated
Affiliates(Million m3)

2.5

3.4

2.8
1.3

Long-distance Seatransportation

2.0
2.2
0.8

Air

1.4

1.0

1.0
1.1

1.1

1.1

’00

’01

’02

0.5
0

’98

’99

FY2001

29.10
29.00

FY200265.80

FY2001 0.58
FY2002 0.54
0FY2001

3.20
3.50
FY2002 1.10

1.6

1.6

0.6

Short/medium- Road
distancetransportation
Rail

1.5

1.5

Yamaha Group relies almost
exclusively on outsourced transportationcompanies for its distribution needs.
The total transportation volume inJapan in FY2002 was 100 million tonkilometers (tons x km) and CO2 emissions
amounted to 26,600 tons-CO2. Although
the main mode of transportation used istrucks, Yamaha has been trying to reduce
the environmental impact of its
transportation needs by switching to trains(actual volume of 540,000 ton-kilometerstransported) and ships (actual volume of
4,600,000 ton-kilometers transported) for
transportation over long distances of
700km or more.
On an unconsolidated basis,transportation volume remained almost
the same as the previous year at 33
million ton-kilometers, for a 2.2%
decrease in CO2 emissions. This
reduction has been achieved by switchingfrom chartered truck services to regularscheduled services and from small trucks
to larger trucks, and by increasing the useof shipping services.

1.2

2.0

2.0

CO2 Emissions during Transport

Breakdown of Total Transportation Volume
in Distribution (million ton-kilometers)

Water Consumption

Unconsolidated
Affiliates

(t)
3.5

Reduction of Water Consumption
and Reuse

FY2001 0.13
FY2002 0.10
0

0.5
(FY)

0

’98

’99

’00

’01

’02

(FY)

Breakdown of CO2 Emissions in Distribution(tons-CO2)

Short/medium- Road
distancetransportation
Rail

Long-distance Seatransportation
Air

FY2001

7,700
7,540
18,800FY2002
FY2001 13
FY2002 120FY2001 150
160
FY2002 50
FY2001190
FY2002 1500Unconsolidated
Consolidated

19

Environmental Considerations in the Production Stage

in the Packaging and Distribution Stage
Introduction of Green Containers
Since FY2000, Yamaha Livingtec
Corporation has been promoting the useof “green containers” for transportation.
Earlier, 20 to 30 parts for each productused to be individually packaged andshipped. However, by loading all theparts for each product together on a
special rack made by Yamaha Livingtec
Corporation, individual packaging ofparts was simplified, thereby significantly
reducing the weight of corrugatedcardboard used for shipping each set ofparts from 40kg to 10kg.
BeforeReduction of Packing Materials
and VOC Emissions

Usage of Foam Cushioning Materials(t)

Yamaha is always striving to develop
more efficient packing specifications.
Yamaha’s usage of foam cushioning
materials, which had been increasing until
last year, was reduced to 530 tons, downby 57 tons from the previous year.
Yamaha also reduced the usage of PVC
packaging materials by 1.3 tons from theprevious year to 2.2 tons. On the other
hand, the usage of wooden packaging
materials increased by 34 tons to 487 tons.
As a result, the end-of-FY2002
reduction goals for wooden packaging
materials and foam cushioning materials
were not achieved.
YP Package Corporation, whichdevelops, designs and manufactures
packing materials, made progress in
reducing the usage of substances subject
to PRTR in the adhesives and inks used
for corrugated cardboard boxes.

600
500

586

581

587
530

400

413

300
200
100
0
’99

’00

’01

’02

Goal

(FY)

Usage of PVC Packaging Materials
(t)
9
8

9.1

7
6
6.9
5

Parts individually packaged incorrugated cardboard boxes

4
3
3.5

2

After: Use of "green containers"

2.2

1

2.9

0
’99

’00

’01

’02

Goal

(FY)

Usage of Wooden Packaging Materials

Set of parts loaded on a rack equipped with casters

Reduction of substances subject to PRTR
in adhesives and inks

(t)
1000

800

1094
877

600

400

200

453

487

’01

’02

449

0
’99

20

’00

Goal

(FY)

Relations With Employees

Strengthening Compliance

Personnel System

In January 2003, Yamaha established
the Compliance* Committee and adopted
the ‘Code of conduct.’ In April, theYamaha Group Compliance Guide wasdistributed to employees of all domestic
group companies, a Compliance
Committee web site was created, and acounseling hotline established to provide
instruction and guidance.
In the future, Yamaha plans to expand
compliance promotion activities tooverseas affiliates. Yamaha will continue
to conduct these types of activities tobecome a company that is needed andrespected by society.
*Compliance: Observance of applicable laws and regulations

Yamaha is engaged in a wide range ofbusiness activities, and this necessitates
personnel management that is also
diverse. In order to promote corporate
competitiveness and continuous growth, asystem is required that rewards skills andresults, thereby raising employees’
motivation.
Based on this view, the Personnel
Division has adopted policies and createdworkplace environments designed topromote among individual employees ahigh level of expertise and the initiative todevelop one’s own career.
Yamaha also supports the building of
new relationships that allow the company
and the individual employee to growtogether.

as well as acting in conformity with the morals and ethics
expected by society.

Structural Reforms

Compliance Seminar

YAMAHA Compliance Guide

In FY2001, Yamaha Group shifted to a
new personnel system that focuses on thefollowing four areas:(1) Creating a system that is suited to each
employee’s role.
(2) Introduction of performance-based
systems.
(3) Education to develop self-reliant
professionals.
(4) Creation of cooperative relationships
between the company and individuals.
Yamaha is also introducing a variety ofmeasures as part of its effort to create anenvironment that facilitates work by
employees from diverse lifestyles.
For example, Yamaha has introduced
an extremely popular child-care leavesystem (maximum leave of 2 years) andan internal recruitment system, in thehope of better coordinating the priorities
of both the company and individual
employees.

Employment of Disabled Persons
In December 1989, Yamaha establisheda special subsidiary, YP Business Service
Corporation, as part of its ongoing effort
to further promote the employment of
disabled persons. YP Business Service

21

Corporation focuses on the employment
of severely disabled persons and the
expansion of fields where they might beemployed. Yamaha’s employment rate ofdisabled persons exceeds the rate requiredby law.

Safety and HealthYamaha Group positively promotes
management activities relating to safety
and health.
Construction of a Health Care Center
which is intended to serve as a center for
promoting good health, was started inAugust 2002 at the Head Office site. In
January 2003 it started providing medical
yearly examinations that include guidanceon maintaining good health, to address
lifestyle-related conditions and promote
prevention.
Also, to promote mental healthcare in ahigh-stress society, Yamaha promotes
health education and consultations andprovides information at the workplace.

Health Care Center

Relations with Society

Popularization of Music

Communication

Donation of Musical Instruments

Yamaha Group provides a variety offorums and opportunities to persons whowish to be inspired and share timethrough music. In FY2002, YamahaGroup conducted a variety of activities
around the world including thosedescribed below.

Yamaha Group communicates withlocal communities through the active
disclosure of information and reflects
opinion received in its activities.

In FY2002, a total of 100 harmonicas
and recorders were donated to elementary
schools in Cambodia and Vietnam and to
facilities for AIDS orphans via the Kids
Earth Fund, a non-profit organization.
Some children expressed their happinesswith the following words: “I was movedby the shiny instrument” and “I will study
music even harder now.”

Information Disclosure
Each year, Yamaha discloses the resultsof its environmental preservation activities
in an environmental report and on its web
site. Yamaha also discloses information
concerning its business activities, vision,and financial matters in the following
publications and on its web site.

1

CORPORATE PROFILE 2003
(Japanese/English)

2

FACTBOOK 2003
(Japanese/English)
Vietnamese children were extremely happy toreceive the harmonicas and recorders

3

ANNUAL REPORT 2003
(English)
ANNUAL REPORT 2003
(Japanese)

Yamaha Music Hamamatsu Co., Ltd.
has retrieved musical instruments nolonger needed by households, repaired
and restored them, and donated them tosocial welfare organizations since 1999.

http://www.global.yamaha.com/

Social Contribution Activities
4

Disaster Support

1 Free Participation Concert 2002
November 2002 Japan (Tokyo)
Approximately 600 lovers of wind and percussion
instruments aged 10 to 70 performed together
for the first time.
2 Sarah McLachlan Music Outreach
June 2002 Canada (Vancouver)Well-known artists offered free instruction to persons
with few opportunities for music training. Yamaha
provided 22 guitars and 18 keyboards.
3 Minoru Yoshizawa Recorder Seminar
June 2002 Indonesia (Jakarta)
A leading recorder instructor and performer
taught teaching methods to local elementary
school teachers and instructors.
4 Infinite 2002 Concert
January 2002 Japan (Osaka)
758 persons performed at this concert thatallowed performers to create music without
restrictions based on the slogan “music you
like on instruments you like with people you like.”

Yamaha Music Central Europe
G.m.b.H. (YMCE) donated a YAMAHA
MPK70 Disklavier to the Dresden
University of Music after the university
suffered significant damage from thefloods that afflicted Germany in August
2002. Also, at the employees’ suggestion,
sending Christmas cards to business
partners was terminated. The money
saved, along with
contributions from
employees,
amounting to
10,000 euros wassent to victims’organizations.

Guitars were donated to a special education school

Local Clean-up Activities
In conjunction with Environment
Month each June, employees at eachfactory conduct local beautification
activities. In FY2002, for example, about
300 employees and family members
participated in the Clean-up Activity at
Lake Hamanako collecting approximately
1.7 tons of trash.

Thank you letterfrom the Dresden
University of Music
The Lake Hamanako
Clean Strategy

22

Environmental Management Division
Printed in Japan using soy-based inks on recycled paper.

November 2003