Promoting Sustainability Across the Entire Supply Chain We ask our partners to support the Yamaha Motor Group’s Basic Policies of CSR and expect them to act on the basis of these poli-cies. Our current Medium-Term Management Plan (2019–2021) calls for the rollout of these policies to cover approximately 90% of our total worldwide procurement value, translating into more than 1,000 companies across the supply chain. So far, we have received declarations of conformity from around 600 companies.As part of our environmental response initiatives, we issued our Green Procurement Guidelines and are accordingly working with suppliers to manage and curtail use of environmentally hazardous substances and to use resources and energy more efficiently, among other undertakings. And in 2018, we incorporated into the guidelines information from the Yamaha Motor Technical Standards on chemical substances uniformly defined throughout the automotive industry, and have made a thorough effort to ensure supplier awareness of and conformity with these changes.To ensure legal compliance, the standard purchasing contracts we sign with individual suppliers call for compliance with related laws, ordinances, official notices, and guidelines.Conducting Assessments of Working Environments in Indonesia On a monetary basis, Southeast Asia accounts for 47% of the parts we procure for our major products, but it is also a region in which human rights risks are generally considered to be high.In 2019, we commissioned a third party to conduct trial assess-ments of working environments, including aspects of human rights violations. Specifically, we selected three suppliers in Indonesia—our largest motorcycle production base—in categories where work environment risks tend to be high. The assessments included judging the degree to which policies were being main-tained and followed; interviewing members of management; evaluating labor practices, actual working conditions, and reme-dial measures; and conducting site inspections. We provided those suppliers with feedback and proposals, and are working on making improvements.CSR Guidelines for Suppliers• Safety and quality• Human rights and working environment• Concern for the environment• Implementation of risk management (crisis management and response)• Thorough compliance• Appropriate information disclosureContributing to strengthening procurement strategy and governance over the next 10 years through a unique perspectiveI have been working for the Yamaha Motor Group for 26 years, and especially my three years of management experience at the Procurement Center in Japan was very insightful, and helped me to better recognize the importance of the global procurement governance.The COVID-19 pandemic has put ongoing pressure on both supply and demand and affected our operations as a whole. We have a responsibility as management to reflect on this and consider how our procurement strategy, activity management, governance, and human resources should evolve over the next 10 years within a rapidly changing business environment. This subject must be discussed on a global level and common decisions must be implemented.As joint leader of the Global Execution Transformation (GET) strategy for the procurement field, I will lead our team to take our global procurement capabilities to the next level.Message from ManagementOlivier PrevostDirector, PTW Manufacturing & Engineering,Yamaha Motor Europe N.V. (YMENV)41Yamaha Motor Co., Ltd. Integrated Report 2020
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