Integrated Report 2021(For the year ended December 31, 2020)

Globally Promoting Sustainability across the Entire Supply Chain Based on a belief of mutual trust and mutual prosperity, the Yamaha Motor Group seeks to avoid risks and minimize the potential damages in crises that can affect our business partners, such as the global supply chain disruptions wrought by the COVID-19 pandemic, natural disasters, quality issues, and management-related circumstances.Risks associated with management and quality issues are addressed through annual monitoring by Yamaha Motor headquarters and com-prehensive evaluations of business partners that examine business continuity plans (BCPs) and the use of substances hazardous to the environment. Further, when deemed necessary, corrective measures are implemented and their progress checked after implementation. Moreover, a supply chain risk management system is utilized to clarify the supply chains connecting raw materials to finished parts and com-ponents procured by the Group in order to analyze and monitor risk factors and facilitate robust BCP management. We are also enhancing our systems for stable procurement in preparation for emergencies to safeguard against global procurement risks.Furthermore, we ask our business partners to support the Yamaha Motor Group’s Basic Policies of CSR and expect them to act on the basis of these policies. 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. We also plan to gradually broaden the scope of these activities to include more countries based on the unique human rights issues each faces while making refinements to implementation methods.Supply Chain-Spanning Initiatives for a Carbon-Free Society To achieve the Yamaha Motor Group’s goals for carbon neutrality, we will be coordinating with industry bodies to build systems for tracking and managing CO2 emissions across the entire supply chain.Energy-saving initiatives targeting the production sites of suppli-ers were rolled out in fiscal 2019 as part of our wide-ranging activi-ties for building a carbon-free supply chain together with our business partners. In addition, we will actively promote the effective utilization of resources, such as the use of renewables, and practice co-creation with business partners in the pursuit of technological innovations for reducing CO2 emissions in the production of raw materials and products.Information on the Company’s policies for such initiatives and our trajectory forward are shared at the annual Global Suppliers Conference in the effort to accomplish our goals together with our partners.Long-Term Procurement Policies Supporting Risk Management and Ongoing Social Contributions Our procurement activities must be constantly adapted to changes and societal issues. We must not become preoccupied with improving efficiency and competitiveness through approaches dependent on production volumes and instead focus on constantly enhancing the value we offer customers. Whether it is pandemics, distribution disrup-tions, or new regulations, risks to supply chains are growing on a global scale.It is therefore crucial for us to work to ensure the ongoing growth of both Yamaha Motor and its business partners alongside our efforts to strengthen our global procure-ment networks and boost competitiveness. It was for this reason that the Procurement Global Executive Committee, of which I am a co-chair, established new long-term pro-curement policies for global rollout.Message from ManagementOlivier PrevostDeputy Executive Officer, Director, PTW Manufacturing & Engineering, Yamaha Motor Europe N.V. (YMENV)43Yamaha Motor Co., Ltd. Integrated Report 2021

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