Yamaha Motor Integrated Report 2020

Environmental Plan 205050% reduction in CO2 emissions during product useImpact of CO2 Emissions per km per Passenger in an Urban Environment* Figures are based on Yamaha Motor research Yamaha Motor’s Climate Change Mitigation Measures Promotion of Low-Carbon ProductsThe products we provide, including our core product line of motorcycles, are characterized by their light weight and compact forms. They have small environmental impacts in terms of resource use during the manu-facturing phase, while throughout the use phase they serve as a conve-nient means of transportation with excellent maneuverability for freely traveling short distances. Motorcycles, a relatively compact and inexpen-sive type of mobility vehicle, meet the demand for transportation of goods and services, particularly in emerging markets that are undergoing rapid economic growth. They also expand the spheres in which people live their daily lives, giving them more options in terms of work and educational opportunities.We have designated Scope 3, Category 11, “Emissions from the use of products,” which account for 85% of our CO2 emissions in the prod-uct lifecycle, as one of our most important initiatives. Under our “BLUE CORE” motorcycle engine design ideal, which strikes a balance between fuel economy and environmental performance, we globally launch new models with improved fuel economy every year. Climate Change-Related Risks Indicators and Targets Each operating division and functional division considered short-term, medium-term, and long-term risks and opportunities, their business, strategic and financial impacts, and the climate change-related risks based on a 2°C scenario, in accordance with the designated climate change materialities of a “low-carbon society,” “recycling society,” and “society in harmony with nature.” These divisions then formulated specific numerical targets for 2025 and 2050 (reduction of use-phase CO2 emissions by 19% per unit sale by 2025, 50% by 2050, from 2010 levels; and reduction of production-phase CO2 emissions by 19% per net sale by 2025, 50% by 2050, from 2010 levels). The Environment Committee manages progress and deliberates matters that have a signifi-cant impact on business, and submits reports or resolution matters to the Board of Directors at least twice a year.Breakdown of CO2 Emissions for the Entire LifecycleSetting of Targets for Environmental Plan 2050Category 11.Breakdown by productFuels used Scope 1 0.5%Electricity used Scope 2 1.3%Scope 3 98.2%Category 11. Use of products 85%2019 lifecycle CO2 emissions285.81 million t-CO2Motorcycles 72%Raw materials 12%Outboard motors 14%Generators / Snow blowers / Multipurpose engines 6%Other 1.2%Others 8%Motorcycles are the fastest means of transportation for urban mobility and boast good fuel economy, while having one-third the impact in terms of CO2 emissions per km per passenger compared with automobiles. When setting our 2017 targets, we formulated reduction scenarios for motorcycles, our primary busi-ness, with reference to the Sectoral Decarbonization Approach (SDA) developed by the Science Based Targets initiative (SBTi), to set a reduction in CO2 emissions of 50% by 2050 as a shared reduction target for all our businesses.MotorcyclesSources: JAMA “2010 Passenger car JC 08 average fuel consumption,” JAMA “Comparison of average speed of vehicles in cities,” EEA “Average number of passengers,” and NILIM “Running speed and CO2 emission intensity”1/3 (0.3)Automobiles1. reduction in emissions in the SBTi (SDA) automobile sectorYamaha Motor Group’s target–50%189g-CO2 / passenger-kilometerIdentification of RisksEach operating division and functional division categorize short-term, medium-term, and long-term climate change-related risks into “risks related to transitioning to a low-carbon economy” and “risks related to physical changes caused by climate change.” Then, after considering the financial impacts of these risks on business, as well as the financial impacts on business when viewing climate change mitigation measures and adaptation mea-sures as opportunities for management reform, they identify risks and opportunities in medium-term management plans.Evaluation of RisksThe Environment Committee evaluates specific initiatives undertaken as part of a business strategy on risks and opportunities identified by each operat-ing division and functional division. The Sustainability Committee evaluates specific initiatives on significant Groupwide risks—particularly companywide business continuity risks, including climate change-related risks—that need to be addressed and prevented to the greatest possible degree.Process of Managing Climate Change-Related RisksWe incorporate climate change-related risk manage-ment into the risk management structure for the entire Group. The Environment Committee manages the annual progress toward the goals and targets of specific initiatives undertaken as part of a business strategy on risks and opportunities identified by each operating division and functional division. The Environment Committee reports the results to the Sustainability Committee, which consists of the same members as the Management Committee, and to the Board of Directors.25Yamaha Motor Co., Ltd. Integrated Report 202062g-CO2 / passenger-kilometer

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