Responding to Procurement Risks and Working with Business Partners for Sustainable Growth Initiatives for a Decarbonized Society with Our Business Partners We are promoting decarbonization initiatives throughout our supply chain to achieve our goal of carbon neutrality by 2050. Firstly, from 2019 we started energy conservation initiatives at the production sites of our business partners in Japan. We assess the manufacturing sites of suppliers and implement measures for work process improvements that cut losses and reduce CO2 Co-Creation in a Post-COVID WorldTransitioning to a Sustainable Supply ChainThe Yamaha Motor Group Sustainability Basic Policy requires busi-ness partners to understand the purpose of the policy and act accordingly. In order to appropriately implement sustainable prac-tices that meet societal requirements and expectations, we have summarized the types of behaviors we want business partners to maintain in our Sustainability Guideline for Suppliers, and are work-ing to promote sustainability throughout our entire supply chain.For a Sustainable Supply ChainTo address the risks accompanying parts supply, we require business partners to provide information on the raw materials used and to submit a Certificate of Non-use of Prohibited/Restricted Substances, which confirms that substances hazardous to the environment are not present in the parts used in our products. Recently, human rights violations in supply chain operations have been highlighted as an important issue and potential risk in the Our procurement operations and supply chain have faced a multitude of problems since the pandemic began, such as restrictions on operations due to the fragmentation of our supply chain, unreliable distribution of materials, part shortages, and an increase in prices in the end. These are now daily issues that we must navigate in order to stay in business. We have thought about how Yamaha Motor’s procurement teams can prepare for the future amid these difficult conditions and the conclusion we reached—and I cannot stress this enough—is that co-creation is vital. We have changed the definitions in the Yamaha Motor Group’s medium- to long-term procurement policy. Since 2020, through the GET* procurement program, Yamaha Motor has worked to ensure that the diversity of region-specific procurement operations overseen by local managers is reflected in our policies. Our relationship with our suppliers is changing as well. Over the past two years, one approach we have taken to deal with issues is to strengthen communication and collaboration with our suppliers. It is important to build win-win relationships in order to overcome difficul-ties, and better communication and the forging of strong relationships with suppliers is our new foundation for creating mutual value in the long term. With all this in mind, we have made co-creation a high priority in our medium-term procure-ment policy.parts production process. Since 2013, Yamaha Motor has been conducting investigations into issues that include child labor, forced labor, and the use of conflict minerals. An investigation on working conditions in Indonesia in 2019 found that there were no violations. Furthermore, we conducted an assessment in 2021 with a third-party institution that focused on foreign technical intern trainees at three of our suppliers in Japan. The investigation did not find any incidents of forced labor, overwork, or health and safety issues, and we were able to confirm that the employment and personal rela-tionships were good. By sharing feedback from the investigation with the suppliers themselves, we are facilitating actions toward further improvement. We are working on various activities to build a stable and sustain-able parts supply network with our business partners, and through these efforts, we aim to reduce potential risks in our supply chain and promote stable and sustainable growth together with our partners. emissions. From 2022, we are conducting investigations into CO2 emissions from our suppliers, confirming each company’s initia-tives and issues and promoting concrete practices for reducing CO2 emissions. Additionally, we are rolling out these activities on a global scale by sharing information at the GSC.* Global Execution Transformation (GET): An internal program in which an executive officer and international personnel with specialized expertise are jointly charged in implementing activities related to management roles and business functions on a global scale.Olivier PrevostDeputy Executive Officer, Director, PTW Manufacturing & Engineering, Yamaha Motor Europe N.V. (YMENV)55Message from Management
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