To Build a Trusted Identity as a
Contributing Member of
the Global Community
Contents / Editorial Policy
Message from the Chairman
Yokohama Rubber Group at a Glance / Corporate Philosophy
Message from the President
Yokohama Rubber’s 100 Year History of Staying Ahead of Society
Development of Products and Services that Contribute to
the Environment and Society
YOKOHAMA Forever Forest Project
CSR and Important Issues (Materiality) / Participation in initiatives in Japan and overseas /
CSR and Environmental Management Promotion System
Creating Value through Our Businesses
Yokohama Rubber’s Important Issues
For the Global Environment
Together with Local Communities
Together with Our Customers
To Our Stakeholders and Investors
Together with Our Business Partners
Together with Our Employees
Our Commitment to Social Challenges over the Next 100 Years
ISO 26000 Compliance Activity Report
Information Map
Third-Party Opinion
CSR
REPORT
Contents
Reflecting on Yokohama Rubber’s History and CSR
The Future of Yokohama Rubber and CSR
E d i t o r i a l P o l i c y
This report was created to share Yokohama Rubber Group’s policies, approach to CSR, orientation and performance with each of its stakeholders in a concise and clear manner. On October 13, 2017, Yokohama Rubber celebrated the 100th anniversary of the company’s founding. Looking ahead to the future, this report introduces our company’s approach to helping to solve social problems, in line with our goal of building a trusted identity as a contributing member of the global community.
Additional details of our activities can be found on our CSR website, which contains a host of information compliant with GRI Guidelines Ver. 4 about the progress of Yokohama Rubber Group’s CSR activities. We invite you to review this website together with the print version.
Period covered by the Report: January 1, 2016 to December 31, 2016 (Information includes some activities which were conducted in and after January 2017) Date of publication: December 2017 (the Report is issued annually)
01
02
03
05
07
11
15
17
19
20
21
23
25
27
29
31
33
35
37
Since we began implementation of our GD100 medium-term business plan in fiscal 2006, we have been
working towards the achievement of clear, specific goals in the run-up to the 100th anniversary of the
founding of Yokohama Rubber in 2017. I feel that we have been successful at coming up with ideas to
further the realization of our objectives, and then getting everyone at Yokohama Rubber working
together as one to put these ideas into practice. Both in our company and in society as a whole, it is
important to “pass on the baton” to the next generation; over the past 12 years, we have been constantly
thinking about how we can pass on the baton in the best possible way.
In our CSR activities, rather than merely seeking to fulfil our corporate responsibilities to society, we
have adopted an approach that emphasizes building ourselves into a company that is trusted by society.
Instead of focusing only on short-term profitability, we have concentrated on earning the trust of a wide
range of different stakeholders. At the same time, I believe that maintaining a constant awareness of the
importance of Environmental, Social and corporate Governance (ESG), which has become a major
focus of attention in recent years, will help us to stay on the right path.
Today, as we look ahead to our company’s 100th anniversary, we need to start thinking in terms of what
society will look like in 2050, or 100 years from now. Regardless of how society changes, I firmly believe
that, if we continue to strive for steady, healthy growth, then we can be sure of keeping society’s trust.
As I see it, Yokohama Rubber’s biggest strength lies in our corporate culture, with its emphasis on
freedom. By making maximum use of our corporate culture, which encourages employees to think freely
for themselves and to make their views known, we can continue to respond effectively to the rapid pace
of change in technology, and the rapidly changing social environment, which Industry 4.0 embodies. I
believe that, as we continue to respond to change, we need to aim at becoming a truly “global enterprise”
that is able to successfully develop localized business operations throughout the world.
To realize this vision, it is vitally important for all employees to demonstrate
“thoughtfulness,” in terms of thinking not just about themselves, but about
how they can be of use to, and make a positive contribution towards, other
people and society as a whole. I sincerely hope that the new generation that
will be carrying Yokohama Rubber into the future will approach their work
with this kind of “thoughtfulness.”
Tadanobu Nagumo
Tires
Yokohama Rubber manufac-turers a wide range of tires, tubes, aluminum foil and automotive components for passenger vehicles, trucks and buses, light-duty trucks, construction vehicles, and industrial vehicles
●
Main Products
●
The Main Regions Where Yokohama Rubber Is Developing Its International Operations
(as of March 2017)●
Net Sales (consolidated) and
Profit Attributable to Owners of Parent
●Total Assets and Equity Ratio
(consolidated)
●Number of Employees
(consolidated)
Company Name
Establishment
Paid-in Capital
Net Sales
Fiscal Year End
Chairman and Representative Member of the Board President and Representative Director
Head Office
The Yokohama Rubber Co., Ltd.
October 13,1917
JPY 38,909 million
JPY 596,193 million (FY2016)
December 31
Tadanobu Nagumo
Masataka Yamaishi (appointed in March 2017)
36-11 Shimbashi 5-chome, Minato-ku, Tokyo 105-8685, Japan
Number of Employees
Number of Shareholders Number of Shares Issued and Outstanding Number of Consolidated Subsidiaries
Stock Exchange Listings
Our Worldwide Locations
Website
24,610 (consolidated)
10,663
169,549,081
135
Tokyo and Nagoya
Japan, the USA, Canada, Australia, Germany, the Philippines, Vietnam, China, Thailand, Russia, etc.
http://www.y-yokohama.com/global/
MB*
Yokohama Rubber supplies conveyor belts, rubber plates, various hoses, fenders, oil-spill containment booms, marine hoses, rubber molded products, air springs, highway joints, rubber support, waterproof materials, water stopping materials, sound- and vibration-proof materials, adhesives, sealants, coatings, encapsulants, and aerospace products.
* MB stands for Multiple Business. This term is collectively used by Yokohama Rubber to refer to a diversified and growing business portfolio.
ATG*
Production of a wide range of different types of tire for use on agricultural machinery, industrial vehicles, construction vehicles, forestry machinery, etc.
* The Alliance Tire Group product family
O t h e r Sporting goods, information processing services, real estate leasing, and others
45 40 35 30 25 20 15 10 5 0 Net sales (JPY billion)
Profit Attributable to Owners of Parent (JPY billion) 559.7 32.6 601.6 35.0 625.2 40.5
2012 2013 2014 2015 629.9
36.3 596.2 18.8
2016 (FY) Net Sales Profit Attributable to Owners of Parent
700 600 500 400 300 200 100 0
Tire production sites Tire sales sites MB production sites MB sales sites Other
Yokohama Rubber Group at a Glance
(as of December 31, 2016)2015 (FY) 543.8 653.6 1,000 900 800 700 600 500 400 300 200 100 0 Equity Ratio (%) Total Assets (JPY billion) 50 45 40 35 30 25 20 15 10 5 0 2012 2013 2014
Total Assets Equity Ratio
2016 710.7 903.0 37.5 41.4 44.1 47.7 38.6 38.6 734.5 21,441 (Persons) 19,412 19,770 0 5,000 10,000 15,000 25,000 20,000
2012 2013 2014 2015 22,187
24,610
2016 (FY)
Corporate Philosophy
(Launched in 1992)To build a trusted identity as a contributing member of the global community.
To enrich people s lives and contribute to their greater happiness and well-being
by devoting our wholehearted energies and advanced technology to the
creation of beneficial products.
Basic Philosophy
Management Policies
1. We shall respect human rights inside and outside the company 2. We shall create workplaces that are safe and healthy 3. We shall harmonize our activities with the global environment 4. We shall provide safe and high-quality products and services
5. We shall conduct corporate activities with a high transparency and practice proper disclosure of information
6. We shall observe not only laws and regulations but also social norms 7. We shall aspire to harmony and prosperity with local communities
CSR Action Guidelines
●Identify continually changing social trends. ●Ascertain the items that can contribute.
●Act swiftly to earn affirm trust. ●Practice CSR in one’s own work.
● Take on the challenge of new technologies to produce new value.
● Develop proprietary business fields to expand the scope of business.
● Create a workplace that values, improves and energizes people.
● Deal fairly with society and value harmony with the environment.
Action Guidelines
● Develop ourselves so that we may give our personal best.
● Trust, challenge and improve one another.
● Nurture a welcoming, open spirit.
Corporate Slogan
Excellence by nature
CSR Management Vision
(Launched in 2008)Yokohama Rubber Group Action Guidelines
(Updated in 2014)GD100 Vision and Basic Policy
To mark the Yokohama Centennial in fiscal 2017, we will evoke a distinctive global identity in building corporate value and in building a strong market presence.
Long-Term Financial Targets (FY2017) Net sales: ¥770 billion, operating income: ¥80 billion,
operating margin: 10.4%
Basic Policy
Deliver the best products at competitive prices and on time. Assert world-class strengths in technologies for protecting the environment.
Foster a customer-oriented corporate culture that honors rigorous standards of corporate ethics.
Grand Design 100
(GD100)Medium-range Management Plan
Basic Policy
Following the principle of dealing fairly with society and valuing harmony with the environment, we shall assert our world-class strengths in technologies for
protecting the environment.
Environmental GD100
●Continued improvement of environmental management. ●Action to combat global warming.
●Contributing to the creation of a sustainable recycling society.
Updated in 2015 Established in 2006
Corporate Philosophy
1. Production business is a social service. Its purpose is to make people’s lives more convenient and enjoyable. Its aim should be to offer good, useful products at moderate prices.
2. There must be a basic commitment to delivering quality products unrivaled by those of competitors.
3. Management should adhere to the principles of fairness and consideration. The mission of a fair, honest management is to ensure capital, share the fruits of endeavor with its workers, and fulfill its responsibilities to consumers to act, in other words, rationally.
4. A company should have as few employees as possible and make the best use of the productivity of machines. This is the great secret for improving efficiency.
5. The success or failure of a business depends on how much one is willing to study, and with how much determination, to mutually improve and grow. Accordingly, one must make a great effort.
Reaching the milestone of
our 100th anniversary while facing a rapidly
changing business environment
Remaining true to Yokohama Rubber’s core
values, and realizing corporate social
responsibility from a broad perspective
Recently, the business environment in which Yokohama Rubber operates has been undergoing dramatic changes. Besides the increased uncertainty in the economic and political spheres, and in international relations, the rapid development of autonomous driving technology and of the Internet of Things (IoT), as well as the increasingly widespread adoption of electric vehicles, has created a situation where the automotive industry is undergoing a transformation of the kind that normally only occurs once every few decades. Having been appointed President of Yokohama Rubber in March 2017, I am deeply aware of the heavy responsibility that I now bear to steer the Yokohama Rubber Group, an organization that comprises around 25,000 people, through these challenging times.
Yokohama Rubber’s GD100 medium-range management plan, which takes as its final year of implementation the year 2017 (the year that marks the 100th anniversary of the founding of Yokohama Rubber), was launched in fiscal 2006. At that time, demand for our company’s tires and other products was growing steadily throughout the world; anticipating that we would be able to ride this wave of growth, we set ourselves the high targets of achieving annual sales of 1 trillion yen and annual operating income of 100 billion yen. Afterwards, however, the world has experienced a series of events that could not have been foreseen, including the Lehman collapse of 2008, the Great East Japan Earthquake of 2011, the European Debt Crisis, etc. In addition, the emergence of major new tire manufacturers in South Korea and China has led to the global market becoming flooded with cheap tires, disrupting the supply-demand equilibrium. As a consequence, the company has been operating within a very challenging business environment over the past few years.
Despite the unexpectedly dramatic changes in the business environment, because all of the companies in the Yokohama Rubber Group have been moving in the same strategic direction in a coordinated manner, I feel that the setting of high targets over the medium-term timeframe still had a very positive impact. Over the past few years, we have achieved steady growth in the global OE (Original Equipment) segment, and our sponsorship agreement with Chelsea Football Club has helped us to boost Yokohama Rubber’s global brand recognition. We have also succeeded in expanding our industrial tires business, with the acquisition of Alliance Tire Group B.V. (ATG) in fiscal 2016 and of Aichi Tire Industry Co., Ltd. in fiscal 2017. As a result, despite the uncertain times in which we have found ourselves, we have succeeded in maintaining steady growth in the global market as a whole, and have made significant forward progress.
In order to maintain our status as a business enterprise that is felt
Building on the foundation
was founded
Aiming to continue to be a company indispensable to society over the next 100 years
Message from the President
to be irreplaceable, both by our customers and by society as a whole, as we approach our 100th anniversary, we need to think seriously about the next 100 years. We are currently formulating our next medium-term strategy, focused on what we want to achieve by fiscal 2020.
To ensure the continued growth of Yokohama Rubber in today’s constantly changing automotive sector, it is vitally important to spread awareness of our company’s tires among the customers of leading global automotive manufacturers in Japan, Europe, North America and China, etc., ensuring that the Yokohama Rubber brand becomes more widely known. One area where our company is particularly strong is in relation to the superior environmental performance of our tires. Making effective use of our unique technology that combines low rolling resistance with improved wet-weather performance (two attributes that in the past have usually been mutually exclusive), we are expanding our presence in the premium car market, where the emphasis is on speed and comfort.
CSR, which includes not only measures to address environmental problems but also compliance and quality enhancement initiatives, is an area that needs to be an integral part of our day-to-day operations in order to realize continued growth for our company. Companies that are weak in CSR cannot win the trust of society; a single mistake in CSR can be fatal, even for a firm with a history going back 100 years.
The impact of our corporate activities is felt far and wide, and we need to take account of the impact on the regions in which we operate, and on our suppliers. It is not enough just to look at how things are now; we need to build solid foundations that look ahead to the situation several decades from now, when the people currently joining our company as new employees will be approaching retirement.
We attach great importance to initiatives aimed at tackling major international challenges, such as the Sustainable Development Goals (SDGs) adopted by the United Nations in 2015. The 17 objectives enunciated by the SDGs each represent new business opportunities for our company. Yokohama Rubber’s manages have an important role to play in formulating strategies that recognize this importance and that reflect the connections between the SDGs and our company’s business operations, and in encouraging every individual employee to participate fully in implementing these strategies.
Yokohama Rubber has been described as "a serious-minded company run by good people." Environmental activities such as the Yokohama Forever Forest initiative, launched in fiscal 2007 with the goal of planting 500,000 trees, are a reflection of the kind of company we are. Every individual tree is being carefully cultivated by us from a seedling until it is fully grown. A company that is willing to continue making this type of effort, working away steadily year after year, is a company with a corporate culture that it can be proud of, and which can be maintained over the next 100 years.
To remain competitive in an era of revolutionary changes, both business innovation and technology innovation are vitally important. Without question, the single most important driver of innovation is the diverse human resources that underpin our Group’s operations. At our Japan-based facilities, we are working actively to promote women’s advancement and participation. Nearly 40% of the new employees that have joined the company in fiscal 2017 are women, and we view the creation of a
workplace environment in which outstanding female employees can maximize their potential as a top priority.
In addition, as part of our efforts to take the global expansion of our business operations at step further, we are proactively recruiting local talent, and cultivating the local managers to whom we can entrust the running of our business sites in countries throughout the world. Japanese-style business management cannot be applied in a "one size fits all" way throughout the world; while ensuring that the human talent that plays such a key role in our overseas operations has an in-depth understanding of the Yokohama Rubber corporate philosophy and of the policies that we seek to adhere to, we also need to give them the latitude to develop business operations in ways that reflect local culture and the unique features of local society. In the future, I hope that we will see some of these
locally-recruited managers making an important contribution on the board of directors of our company.
When undertaking human talent cultivation, I believe that an effective approach is to set targets that are slightly higher than what each individual might currently think they are capable of achieving, and to gradually entrust them with more and more responsibility. The individual employee learns to make decisions for himself or herself, determine what steps need to be taken, take responsibility for the outcome, and accept assessment of his or her performance. This can be very challenging, but younger employees really do need to build up experience in this way.
We need to treasure the "Yokohama Rubber core values" that have been built up by so many employees over the 100 years of our company’s history, and work to enhance them still further. By working together as one, we can take on the challenge of dealing with the changes that the next 100 years will bring.
Striving for continued growth,
and focusing on the development of diverse
human talent around the world
Aiming to continue to be a company indispensable to society over the next 100 years
Message from the President
Masataka Yamaishi
Yokohama Rubber’s
100 Year History of Staying
Ahead of Society
1917 to 1999
1917 to 1937
Foundation to prewar growth period
Established with aspirations of producing some of the finest products in the world
Operating based on a
founding spirit that values
economic efficiency and
social qualities.
Hiranuma Plant1938 to 1950s
From military demand, expansion,
and defeat to reconstruction
Business driven by military demand/overseas production and reconstruction from postwar
Promptly developed
environmentally friendly
products while resuming
business following
hardships.
Head Office and Tokyo Branch OfficeDevelopments at Yokohama Rubber
Representative products
1917 Yokohama Rubber Co., Ltd. was established on October 13 as a joint venture between the BF Goodrich Company and Yokohama Electric Cable Manufacturing Company.
Has the ambition to produce the best rubber products in the world using the advanced technology of the US.
1920 Started tire production
1923 Hiranuma Plant was completely destroyed by the Great Kanto Earthquake
Worked to rebuild the plant while importing and selling tires from the BF Goodrich Company.
1929 Started operations of the Yokohama Plant completed in Tsurumi-ku, Yokohama
The speech at that time by President Suekichi Nakagawa adopted as the founding spirit.
1938
to Established production sites in Asian countries 1944
1944 Opening of Mie Plant
1945 Yokohama Plant rendered inoperative by Allied air raids Lost all the business sites in Japan and overseas
1946 Got a fresh start based on a dauntless spirit Started operations at Mishima Plant
1951 Started operations at Hiratsuka Plant
1921 Independent development and utility model registration of a cut-edge flat belt
Developed Japan’s first corded tire, the "Hama Town Cord"
Extended the life of tires by three times
1929 Started domestic production of V-belt
Revolutionized the V-belt industry with high-speed operation, long life, and excellent acoustics
1937 Launched a Y-shaped tire that adopts a new tire cord
Improved durability, etc.
1940 Started sales of recycled rubber
1952 Launched Japan’s first cord conveyor belts
1954 Launched the "Y-29", Japan’s first snow tire
1958 Launched HAMATITE® sealant made from a rubber and resin compound
Aimed for the domestic production of construction sealant, which passed stringent durability testing and has been used in many high-rise buildings.
Developed a pneumatic fender as the Company’s first environ-mental contribution product
Previously, whales had been used as cushioning material for whaling ships coming alongside the pier, which were substituted by this fender. 1. Production business is a social service.
2. Commit to delivering quality products unrivaled by those of competitors.
3. Management should adhere to the principles of fairness and consideration.
4. Making the best use of the productivity of machines is the great secret for improving efficiency.
5. Make a great effort to succeed in business.
Founding spirit (summary)
end of
( ) war
Yokohama Rubber will celebrate its 100th anniversary since foundation in 2017. Over this period of
100 years, we have overcome various difficulties and worked as a company to develop products
ahead of the world.
We will introduce the values Yokohama Rubber has continued to provide to society along with our
environmental and CSR activities.
1963 Renamed to The Yokohama Rubber Co., Ltd.
1970 Pollution Prevention Committee established
Became the Environmental Improvement Department the following year.
1972 Established Tokyo Retread Co., Ltd. and started a retreading business
1973 Formulated a new management philosophy
Aim to put an emphasis on corporate social responsibility. Around this time, we indicated that we would not generate pollution even at the stages of subcontrac-tors, raw materials suppliers, and customers.
1974 Started operations at Onomichi Plant
Equipped with a full factory wastewater closed system.
1977 Occurrence of some defects in car steel radial tires and subsequent announcement
Started withdrawal and replacement measures. Made prompt response efforts including inspections.
Planned and executed recurrence prevention measures.
1983 Entered the PRGR (ProGear) golf business
1992 Formulated the corporate philosophy
1992 Mie Plant completes a tire incineration boiler using waste heat in consideration of the environment
1993 Formulated environmental protection action plan
1996 Established production and to sales subsidiaries in the 1997 Philippines, Thailand,
and Vietnam
1999 Acquired ISO 14001 for all plants in Japan
1964 Japan’s first spiral high pressure hose released
Supports the adoption of hydraulics for industry machinery.
1965 Manufacturing and sales of the first jet aircraft tires in Japan
1967 Launched sales of "G.T. Special" and "G.T. Special XX", radial tires for passenger cars
Radial tires with doubled durability of bias tires up until now became mainstream.
1971 Launched sales of "G.T. Special Steel",
Japan’s first steel radial tubeless tire for passenger cars
1976 Started development of fuel-efficient tires for North America
1978 Launched sales of "ADVAN HF" for passenger cars
1980 Launched sales of "ASPEC AX-323", a Kevlar radial tire for passenger cars
1983 Launched sales of golf balls
1988 Launched sales of low-permeability air hose with one-tenth the alternative freon R134a permeability of traditional products
1990 Launched sales of "SY101", a studless tire for trucks and buses
1991 Launched sales of "Flex Line", a cylindrical conveyor belt that prevent scattering of the transported object
1998 Launched sales of "ES-01" and "ES-02" as first offerings of new fuel-efficient "DNA" series of passenger car tires in Japan
The rolling resistance used for indicating fuel economy at this time is regarded as a benchmark for tire fuel economy now.
1960s to 1970s
High growth period
Taking on our social responsibility as quickly as possible
As pollution had become a
social issue and in
anticipa-tion of the times, we
indicat-ed a stance of consideration
for not only our own
compa-ny, but also the supply chain
and the local community.
Onomichi Plant1980s to 1990s
From the bubble economy to a period
of low economic growth
Pioneering environmental support
Launched sales of the
"DNA" series as the first
eco-tires in Japan, staying
ahead of the global low
fuel consumption trend.
"DNA", the first eco-tires in JapanYokohama Rubber’s
100 Year History of Staying
Ahead of Society
2000 to 2017
2000s
Evolution of
CSR management
Becoming a company having world-class strengths in technologies for protecting the environment.
We have implemented various
initia-tives as a company having world-class
strengths in technologies for protecting
the environment based on GD100 and
the Environmental GD100.
Logo for GD1002001 Started a zero emissions campaign
Aim to stop producing industrial wastes for landfills by end of fiscal 2005
2001
to Established production and sales 2004 subsidiaries in China and Thailand
2003 Completed construction of Shinshiro-Minami Plant in Aichi Prefecture
2005 Established a tire sales company in Russia, Yokohama Russia L.L.C
2006 Announced new medium-range management plan, Grand Design 100 (GD 100)
At the same time, set out on a policy of being a company having world-class strengths in technologies for protecting the environment
Established production and sales subsidiaries in China (Shandong, Suzhou)
2007 Started the YOKOHAMA Forever Forest tree-planting project
We create forests in consideration of biodiversity at offices in various locations.
Established a local subsidiary in India, Yokohama India Pvt. Ltd.
2008 Established a Corporate Social Responsibility Division
Released the CSR Management Vision of "To build a trusted identity as a contributing member of the global community."
2010 Formulated Guidelines on Biodiversity
2000 Began sales of prepreg for aircraft structures
Achieved a significant reduction in weight compared to conventional metal structure materials and contributed to improved fuel economy.
2001 Launched sales of "ECU-193" wood-based flooring material elastic adhesive as a sick house countermeasure
2002 Launched sales of "iceGUARD iG10" studless tires for passenger vehicles
2003 ISO certification acquired for Yokohama Rubber’s pneumatic fenders
Launched sales of "Ecotex", an energy efficient conveyor belt
2005 ADVAN become a global flagship brand
Launched worldwide sales of "ADVAN Sport V103"
Launched sales of the "AIR Watch" tire pressure monitoring system for passenger cars
2007 Launched sales of "ZEN 102ZE", a fuel-efficient, low maintenance tire for trucks and buses
2009 Launched sales of "Y-coat", a coating material used in household appliances and electronic devices
Contributed to improved durability for information home electronic products such as mobile phones.
2010 Launched sales of "BluEarth AE-01", a fuel-efficient tire for passenger cars, as the first offering in the "BluEarth" series
Developments at Yokohama Rubber
Representative products
2010s
Further progress of
globalization and expansion of
social activities
In preparation for the next generation of society
Evolution of social activities aimed at the
next 100 years
2011 Established Yokohama Peer Support Co., Ltd., as a company promoting employment of disabled individuals
Started environmental protection project in the Laojunshan Preservation Area in China
2012 Received integrated ISO 14001 certification (China)
Signed the United Nations Global Compact
2014 Introduced a regional comprehensive work position system, and abolished general position system
2015 Held social contribution activities awards for business partners
Awards were based on the result of self-diagnosis and questionnaires previously conducted with business partners
2016 Acquired Alliance Tire Group B.V.
Certified for top-ranking A List in the CDP Climate Change Report 2016
2017 Acquired Aichi Tire Industry Co., Ltd.
Achieved the goal of planting 500,000 trees in the YOKOHAMA Forever Forest Project
2012 Launched sales of "Duotex", a long-life conveyor belt composed of recycled materials
2015 Launched sales of the "AC6B 11" air conditioning hose, the first in the world to support next-genera-tion refrigerant
2016 Launched sales of the "ibar HG82" hose for high-pressure hydrogen gas
Contributed to the spread of fuel cell vehicles and hydrogen stations.
2017 Expected to achieve goal of 100% environmentally-friendly products
Acquired Alliance Tire Group
into a subsidiary Indonesia Plant (marine products manufacturing)
We would like to introduce our efforts to expand CSR management and environmentally friendly
products that we have particularly focused on since 2001.
We will implement world-pioneering business and social initiatives in preparation for the next 100
years for Yokohama Rubber.
Development of Products and
Services that Contribute to the
Environment and Society
Tire business
ADVAN Series "ADVAN Sport V105" "ADVAN FLEVA V701"
High-performance sporty tires
We offer enjoyable handling and high driving performance on wet surfaces so that many people can enjoy comfort even at high speeds.
iceGUARD Series "iceGUARD 6"
The masterpiece of Yokohama’s studless tires
"iceGUARD 6" added good performance in wet conditions and superior noise reduction to the existing key strengths of the iceGUARD brand (first-class performance on icy roads, long-lasting high performance, and improved fuel economy) to achieve even further safety on winter roads.
BluEarth Series "BluEarth RV-02"
Acquired the highest grade of "a" for wet grip performance
This tire for minivans and crossover SUVs you use to drive around your precious family members and cargo achieves both fuel efficiency and safe driving during rainy weather.
Retread tires
Retread tires are tires that have been reused through re-adherence of tread rubber that has worn off to restore function as a tire. By reusing resources we contribute to the reduction of CO2 emissions in tire production as well as a reduction in waste tires.
Internet release of "Rainy Day Hill"
We have made an appeal for the excellent wet performance of Yokohama’s tires through this original short movie in an effort to improve recognition.
Product
01
Product
02
Product
03
Product
05
Disposal
Disposal
Up until now:
U s e New
tires
New tires
U s e U s e
From now on:
Product
04
We continue to pursue technologies that achieve a top-level of environmental performance
and lead to safety and peace of mind.
Tire products
We offer products that enrich
the lives of customers
while responding to the
social needs.
To P. 25
Tire business that evolves technologies
in response to the expectations of customers
and society
Retread tires
Promoting motor sports activities
We promote and support various motor sports as opportunities to experience the joy of driving.
We will leverage the design, manufactur-ing, and assessment technology and know-how developed in these activities in the development of future projects.
Development of and cooperation between technical bases
We have developed regional development bases near markets including Japan, North America, Thailand, and Europe as a structure capable of supporting the requirements of each region.
"AIRTEX" low air permeability material
This low air permeability liner that is applied inside tires significantly reduces tire air leaks and contributes to improved fuel efficiency for tires and resource conservation.
World’s first 3D analysis technologies (Adhesion deterioration assessment)
In partnership with Tohoku University and Hitachi High-Technologies Corporation, we have developed technologies for the three-dimensional analysis of rubber and steel cord adhesion deterioration. These technologies are expected to be applied to the development of tires with high durability.
Biomass materials
We are developing technologies for the generation of raw materials for synthetic rubber including butadiene and isoprene from biomass. We can reduce CO2 emissions to one-fourth of previous levels through the development of these technologies.
Tire simulation technologies
Super computers, numerical simulations, and data science are used to clarify the impact that the variety of design factors of tires and rubber can have on various characteristics to facilitate the development of next-generation tires. To P. 28
To P. 34
Expansion of production goods tire business
We have expanded our business of tires for agricultural, forestry, and industrial applications through the acquisition of the Alliance Tire Group (ATG) and Aichi Tire Industry Co., Ltd. and partnerships.
Sponsorship agreement with Chelsea FC and social contribution activities
We have entered a sponsorship agreement with a Premier League football club to help improve recognition of our company and our brand image. We also conduct social contribu-tion activities, including a football school and tire safety awareness activities.
Technology
development
We utilize advanced technologies
and materials technologies in
response to the requirements of
customers and society to
develop a global R&D
structure covering various
use conditions.
We have a technology, service, and
sales structure in place that allows us
to quickly respond to various needs.
Recently, we have also focused on
the expansion of industrial
application products and
sales channels through
M&As.
Technology
01
Technology
04
Technology
05
Service & Business
03
Service & Business01
Service & Business
02
Technology03
Technology
02
Image of synthesis of synthetic rubber (butadiene rubber) with biomass as a raw material
Currently: Produced industrially as a byproduct of oil refining
Butadiene Butadiene rubber Individual
catalysts
Synthetic rubber
Synthesis of butadiene in a highly efficient manner through individual catalysts from cellulose that is biomass
To P. 34
Service
and
business development
To P. 25
To P. 27
To P. 24
Development of Products and Services that
Development of Products and
Services that Contribute to the
Environment and Society
MB business
"Versatran" high pressure hose
High pressure hoses are essential for a wide variety of industrial equipment such as construction machinery and machine tools. The hoses have the characteristic of improving flexibility through the optimization of materials and keeping the bending radius to a minimum.
We plan to develop a lineup of spiral hose products that prioritize high pressure, high durability, quality, and performance, and to strengthen the overseas sales of high pressure hoses with a focus on the mid-range and above market overseas.
Resin tailgate adhesives
Resin tailgate adhesives were developed through revolutionary primer-less technologies, and have contributed to a reduction in car body weight. As fuel efficiency is improved, they contribute to both the global environment and fuel cost reductions.
"AC6B 11" next-generation refrigerant hose
This is an air conditioning refrigerant hose that supports HFO-1234yf that has a low global warming coefficient. We succeeded in improving coolant resistance through patented plastic materials.
Marine hose and pneumatic fender
Yokohama Rubber has a global top class market share for pneumatic fenders and marine hoses, widely used in marine transport operations for crude oil, etc.
Since oil leaks can lead to major marine pollution, high reliability and durability have been essential for these products. In recent years, we have further improved the safety by introducing to the market our double carcass hoses with an oil leak detection feature.
Product
01
Product
02
Product
04
Product
03
MB products
We offer a variety of products
that support social
infrastructure.
We provide backing support for the lives of
people through MB business products
To P. 22
Business Partners Liaison Council
We endeavor to stably provide high-quality products by creating strong trust relationships with business partners.
Expansion of global production and sales structure
During the GD100 period, we have established sales and production bases in China
(Shandong/Hangzhou), Italy, and Indonesia; sales bases in China (Shanghai), Singapore, and Europe (Dusseldorf); and a production base in Mexico in order to strengthen our global production and sales structure.
Silicon encapsulating materials for LED
We have developed highly durable silicon encapsu-lating materials for high-brightness LED lighting, which have been applied in many areas close to daily life including offices and shopping malls.
In addition, UV-resistance silicon encapsulating materials, developed through proprietary technolo-gies for UV-LED that demand has grown for recently, have been adopted and applied in various fields, including sensors and cosmetics.
High-pressure hydrogen gas hoses "ibar HG82"
We have achieved lightness, flexibility, and also durability through a hybrid structure of patented fiber and steel wire. We are also actively engaged in the development of hoses to support the 87.5 MPa international standards.
"Tuftex α" conveyor belt
By carrying out a number of field trials, using a proprietary evaluation criteria, and making fine adjustments at the compound level, we were able to develop "Tuftex α" with an abrasion resistance of 64% better than our existing Ultra Wear Resistant (UWR) cover compound.
We conduct various forms of
R&D in pioneering technologies
and materials development to
respond to the needs of
customers, and technology
development to support
next-generation social
infrastructure.
Technology
development
We have put in place global
production, supply, and sales
structure, and we also conduct
activities aimed at
improve-ments in terms of quality,
technologies, and
services.
Technology
03
Technology
02
Technology
01
Service & Business
01
Service & Business
02
Service
and
business development
To P. 29
Development of Products and Services that
YOKOHAMA
Forever Forest Project
—
Spreading greenery for smiling faces
—
YOKOHAMA Forever Forest Project that started from fiscal 2007 is a project for planting 500,000 seedlings at business locations in Japan and overseas by fiscal 2017 that mark Yokohama Rubber’s 100th anniversary, based on our Environmental GD100 slogan of "we will become a company having world-class strengths in technologies for protecting the environment". Based on stance of potential natural vegetation, we plant the species native to that region. In addition, through tree planting we conduct green environmental
regenera-tion activities that protect life in the regional environment and local communities through means such as raising the environmental awareness of participants, creating fire prevention programs and forests to preserve the environment, contributing to global warming prevention, maintaining biodiversity, and improving communication with the local community. The activities of this period of eleven years have spread significantly in aspects including ties between various people and contributions to the environment.
Activities have spread over a period of eleven years since the start of the Project
We have conducted tree planting activities every year since 2014. We also participate in regional tree planting activities when we have the opportunity and value our relationship with the local community. In March 2016, we also participated in tree planting activities held near the Qiantang River that flows through the city of Hangzhou, and donated seedlings that we had nurtured in our plant premises. These types of YOKOHAMA Forever Forest Project activities have been noticed by the local community and were introduced in an event as public welfare activities in November 2016. In March 2017, employees provided guidance on tree planting at a tree planting event held at an elementary school in the Xiasha District of the city of Hangzhou. Zhangyon Huan
Safety and
Environmental Section Manager Yokohama Industrial Products – Hangzhou Co., Ltd. (YIPHZ )
Currently, approximately 70,000 seedlings are growing at the Shinshiro Plant. Seedlings are contributed to nursery schools, kindergartens, elementary schools, social welfare
corporations, and other organizations to assist with local reforestation. At the Shinshiro City Johoku Nursery School, as activities to protect the lives of trees when trees were felled at the local Tominaga Shrine accompanying the relocation of the school building, we supported the raising and planting of seedlings from acorns from the trees that were felled. In addition, we conducted tree planting activities together with the NPO Donguri Mongori, Parks and Green Spaces Division and Natural Environment Division in Aichi Prefecture, and local children. Masaru Naito
Meister, Shinshiro Plant
At the first tree planting event conducted in February 2016, 24 species of 2,159 tree seedlings were planted in the plant premises, with the participation of personnel from Embassy of Japan, state government, representatives from other related companies and school children. The trees grew about 3 m tall after one year, as the tree planted area grew into green area many birds and insects started to come. In February 2017, 24 species of 1,740 tree seedlings were planted at the second tree planting event. Our employees take pride in their contributions as part of CSR activities and biodiversity conservation activities. We are planning tree planting in Kasar Village as our next CSR activity including village personnel.
Pradeep Baswana
Joint Manager , EHS Yokohama India Pvt. Ltd. (YIN)
China
Shinshiro
India
History of 500,000 trees and the fixed quantity of CO
2absorption
(Estimated based on measurements at the Hiratsuka Factory)
YOKOHAMA Forever Forest Project
500,000 400,000 300,000 200,000 100,000 0
1,000 800 600 400 200 0 2010
2009 2011 2012 2008
2007 2013 2014 2015 2016 2017 (FY)
(No. of trees) (Tons)
369,150
414,697 452,591
500,000
325,706 285,413
232,090 183,060
134,558 79,381
27,000 4.6 19.1 52.5
109.7 189.5
287.6
399.6
525.7
659.7
799.3
Ongoing support for disaster areas leveraging the know-how of the
YOKOHAMA Forever Forest Project
"Green Tide Embankment" in Otsuchi-cho, Iwate Prefecture
We have also planted a total of 2,235 trees in tree planting activities at eight elementary schools in the neighborhood outside of the plant. According to Principle Nguyen Anh Hong, "As the students are proud of the trees they have planted, and they bring along their friends and family to tell them which tree they planted, I think these activities are also good for raising their awareness of environmental protection." It also makes ushappy to see children play under the shadows of trees they have grown, and we take pride in the fact that we have also contributed to an improvement in the awareness of people in the local community towards climate change and the environment. Nguyen Thanh Duy Sinh (left)
General Affairs Section Manager
Huynh Thi Thu Ai (right) Environment Section Manager, Yokohama Tyre Vietnam Inc. (YTVI)
We planted 2,300 seedlings during the first tree planting event in 2009. We have plans to complete the planting of a total of 13,000 trees in 2017. A YOKOHAMA Forever Forest that contributes to the habitat of living creatures has been formed at the plant, and the breeding of mammals such as deer and red fox and the eastern bluebird that is an endangered species has been observed at this forest. In addition, we are confident that the positive effects of this YOKOHAMA Forever Forest that include contributions to biodiversity, the absorption of CO2, and controlling surface water and soil
erosion to assist penetration to groundwater will lead to trust from the community surrounding the plant.
Christian Yates
Senior Environmental Specialist, Yokohama Tire Manufacturing Virginia, LLC (YTMV)
We started tree planting activities in 2008 under the guidance of Dr. Shirin of the Thai Royal Household Bureau. We expect to achieve the planting of approximately 81,000 trees in 2017, which is 161% of the tree planting target of 50,000 trees. We have also conducted bird and insect monitoring surveys within the plant premises since 2013. Furthermore, from 2015 we started creating a biotope, and held information sharing events for stakeholders including local residents, local municipalities, and elementary schools. Nittaya Suna
Environment Supervisor, Safety and Environment Section, Yokohama Tire Manufacturing (Thailand) Co., Ltd. (YTMT)
Vietnam
North
America
Thailand
We support the "Green Tide Embankment" Project that is part of the reconstruction plan concept set forth by Otsuchi-cho that focuses on creating a beautiful town with unique paths with a view of the sea that make you want to walk, and as part of these efforts we supported the creation of a forest that will serve as a model case. The "Green Tide Embankment" is an idea conceived by the plant ecologist Dr. Akira Miyawaki, who has provided guidance for the YOKOHAMA Forever Forest Project.
The Miyawaki method is a unique method for growing trees closely together in a state near to a natural forest by planting native species and raising many types of seedlings. On April 30, 2012, a mound (embankment) utilizing earthquake rubble was formed for a length of 50 m along the Kozuchi River that flows through Otsuchi-cho. Starting with the first tree planting event, a mound of approximately 250 meters long was forested by 2015. These activities have been
carried on in a tree planting course in the "Furusato (Hometown)
Course" of Otsuchi Gakuen that is operated by the town of Otsuchi. Debris from the Great East Japan Earthquake are buried inside of the mounds where these trees are planted. We believe these activities not only constitute the
effective utilization of debris that are full of the memories of people who underwent a disaster, but that they will also help prevent disasters in the future.
We started bird watching from September 2008 in order to understand the effects of the YOKOHAMA Forever Forest Project on the ecosystem. We have held monthly bird watching events 106 times as of June 2017 while receiving guidance from the Komatan bird watching group, and we have observed 55 species of birds in the process. We have felt the connection between birds and the YOKOHAMA Forever Forest while keeping records that include the forest being used by migrating birds including the eastern crowned warbler and nests built of trees that were planted by birds such as the white-eye. We will continue bird watching in the future as well. Fumina Suzuki
Environmental Protection Promotion Department, Hiratsuka Factory
Hiratsuka
Yokohama Rubber Group is committed to the ten principles of the UN Global Compact*1 and carries out the Plan-Do-Check-Act (PDCA) cycle
following the framework of ISO 26000*2.
*1: A voluntary initiative in which companies participate in a worldwide framework for realizing a sustainable society by taking action as a good corporate citizen through creative and responsible leadership.
*2: A set of guidelines created by the International Standards Organization (ISO) on the social responsibilities of companies and other organizations.
In 2014 we determined important issues (materiality) with regards to themes of great interest to and impacts on both the company and stakeholders, from among the many CSR issues that exist.
We focus on specific items among these and establish KPI as we work towards ongoing improvements by implementing the PDCA cycle to achieve these items.
Human Rights
• Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and • Principle 2: make sure that they are not complicit in human rights abuses.
Labour
• Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
• Principle 4: the elimination of all forms of forced and compulsory labour; • Principle 5: the effective abolition of child labour; and
• Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment
• Principle 7: Businesses should support a precautionary approach to environmental challenges;
• Principle 8: undertake initiatives to promote greater environmental responsibility; and
• Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
• Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
Determining Important Issues (Materiality)
Materials Energy Water Biodiversity Emissions
Products and services
Environmental grievance mechanisms
We challenge to build a sustainable society in harmony with the environment, to protect our blue planet and human beings.
The global
environment
Customer health and safety Product and service labeling Marketing communications Compliance (Product liability)
We supply safe and secure products through
manufacturing focused on our passion and technology.
Customers
Market presence Local communities
Grievance mechanisms for impacts on society
We build a trusted identity as a contributing member of the global community by making contributions to the development and prosperity of local communities.
Local communities
Occupational health and safety Training and education
Diversity and equal opportunities Human rights grievance mechanisms
We value and develop our people, and create opportunities for people.
Employees
Economic performance
We improve our company value by growing business opportunities.
Shareholders/investors
Supplier human rights assessment Supplier assessment for impacts on society Supplier environmental assessment Supplier assessment for labor practices Child labor
Forced or compulsory labor
We promote CSR activities throughout the value chain.
Business partners
Organizational governance Human rights
Labor practices The environment Fair operating practices Consumer issues Community involvement and development
1
5 3
7 2
6 4
ISO 26000 Seven Core Subjects
The Ten Principles of the UN Global Compact
*Please see page 21 for specific initiatives for stakeholders in terms of value creation through our businesses.
CSR and Important Issues (Materiality)
The Future of
Yokohama Rubber and CSR
CSR and I
mp
or
tan
t I
ssues (M
a
terialit
Twice a year, we hold a CSR Council chaired by the President and an Environmental Council chaired by the Head of Corporate Social Responsibility Division, in order to plan and review CSR issues that Yokohama Rubber Group should be addressing. Matters that affect management are reported to the Executive Committee for approval.
Japan Association for the World Food Programme
We endorse the World Food Programme (WFP) in undertaking to eradicate hunger and poverty and support the activities of the WFP as a trustee.
WBCSD (World Business Council for Sustainable
Development)
WBCSD refers to the united association consists of top executives from global corporations in order to perform their leadership in their industry, have lively discussion, and propose policies with regards to the environment and sustainable development. We are participating in the Tire Industry Project which is to conduct surveys pertaining to possible impact on the environment and health to be made by tires, and to promote various activities to save energies in the buildings and offices.
Charter of Corporate Behavior of Keidanren
We conduct business activities in accordance with the Charter of Corporate Behavior in order to gain trust and empathy from society. Furthermore, we have been in accordance with the idea of "Declaration of Biodiversity by Keidanren" and their promotion partners since 2009 to develop various approaches for the preservation of biodiversity. Basic policies and action guidelines have been set forth as "Guidelines for the Preservation of
Biodiversity."
In addition, we participate in various activities for Keidanren’s Commitment to a Low Carbon Society under the vision of "Japanese business community to harness our technological prowess and assume an instrumental role in the drive to halve global GHG emissions by the year 2050".
Sustainable development goals (SDGs) adopted by
the United Nations
We work to resolve important issues (materiality) as we conduct business activities that contribute to SDGs in order to achieve a sustainable society.
■ CSR and environmental management promotion framework (as of September 22, 2016)
Representative Director
Management Meeting
CSR Council Chairperson: President
Environment Council
Chairperson: Head of Corporate Social Responsibility Division
Corporate Officer / Operating Departments Export Control Committee, etc. Personal Information Protection
Management Committee Risk Management Committee Central Disaster Prevention Council
Central Safety and Health Committee Central Labor Committee Corporate Compliance Committee
MB Production Environmental Task Force
Head: Officer , MB Production and Engineering
Head Office and Sales Subsidiary CSR & Environmental Task Force
Head: Head of Corporate Social Responsibility Division
Subsidiary Production Environmental Task Force
Chairperson: General Manager,
Head of Environmental Protection Promotion Department
Global Environmental Council
Chairperson: Head of Corporate Social Responsibility Division
Chemical Substance Management Committee
Chair: Officer , MB Production and Engineering
3Rs Committee
Chair: Head of R&D Center
Global Warming Countermeasures Committee
Chair: Head of Tire Production Division
Environmentally Friendly Product Committee
Chair: Head of Commercial Tire Division
Yokohama Forever Forest Committee
Chair: Head of Corporate Social Responsibility Division
Tire Production Environmental Task Force
Head: Head of Tire Production Division
CSR and Environmental Management Promotion System
Initiativ
es/
CSR and En
vir
onmen
tal M
anagemen
t P
romotion S
yst
We will strive for ongoing improvement by setting KPIs and implementing the PDCA cycle in relation to the selected important issues.
G4 gap analysis
Issues assigning G4 gap analysis
priority
Assigning an external perspective G4 gap
analysis priority
Deciding on important issues
Focus was placed upon the requirements of the fourth-generation GRI Sustainability Reporting Guidelines (G4) with respect to information disclosure levels (CSR Report 2013). The current situation was grasped vis-à-vis the content and processes of both responsive and unresponsive items (conducted January 2014).
On the basis of the analysis of the degree of importance (internal and external), research, and discussions conducted in Steps 2 and 3, the selected important issues were decided on through stage-by-stage discussions at CSR Council and Board of Directors meetings (This process was implemented in October 2014).
Interview research was conducted among five stakeholders. From the perspective of what each of these individuals considered to be important issues (material aspects), a gap analysis priority was assigned based upon the research results (conducted February–March, 2014).
The views expressed by the stakeholders can be found on our website. (http://www.y-yokohama.com/global/csr/outline/g4.html)
Analysis was conducted in accordance with Yokohama Rubber’s industries, business sectors and business regions. After completion of this analysis, the G4 gap analysis priority was assigned vis-à-vis those issues affecting Yokohama Rubber that were identified through discussions with related business units (conducted January–February, 2014).
Sample Evaluation
The "Supplier Environmental Assessment" Aspect: For Yokohama Rubber, a company that procures natural rubber as a raw material, there is the necessity to consider that hidden human rights risks might exist within the upper reaches of supplier chains extending beyond its scope. Moreover, if wide-ranging business activities conducted in numerous regions encompassing both developed and developing nations are considered, such risks might be easily exposed. Through coordination in-house with the parties responsible for such matters, "human rights risk" was evaluated as being "a very important aspect" for Yokohama Rubber.
STEP 1
STEP 2
STEP 3
STEP 4
Phase IV (2015 to 2017) is the culmination of GD100 and is positioned as the phase for setting the stage for progress in our company’s second century and resolving issues that have arisen up until now based on the theme of "All for Growth—Open the way for the next 100 years by bringing together the potential of Yokohama Rubber". We hope to bring together all forms of growth in our business activities, including the growth achieved in each phase, the growth of the Group overall, and individual growth. Net sales of 770 billion yen, operating income of 80 billion yen, and an operating margin of 10.4% have been set as the quantitative targets for 2017. Note that due to subsequent changes in the environment, these figures were net sales of 660 billion yen, operating income of 50 billion yen, and an operating margin of 7.6% in the report for the second quarter of fiscal 2017 (as of August 2017).
We will improve customer value and expand on a global scale in order to continue to be a manufacturer of tire and rubber products needed by customers for the next 100 years
Work together as an entire company so that all behaviors
lead to an improvement in customer satisfaction
Products that have a presence that feels like
Yokohama Rubber
Aggressive investments utilizing a sound financial
position
Tire business strategy MB business strategy
Technology strategy Company-wide strategy CSR initiatives
Shareholders and investors Business partners and suppliers Employees
The global environment Local communities Customers
Yokohama Rubber’s stakeholders
GD100 Phase IV: All for growth
Process used for identifying important issues
We identify important issues in relation to Yokohama Rubber’s stakeholders and determine which issues should be prioritized.
Creating Value through Our Businesses
C
rea
ting
V
alue thr
ough O
Important Issues
We challenge to build a sustainable society in harmony with the environment, to protect our blue planet and human beings.
For the Global
Environment
Organizational governance
The environment
We supply safe and secure products through manufacturing focused on our passion and technology.
Together with
Our Customers
We improve our company value by growing business opportunities.
To Our Stakeholders
and Investors
Organizational governance
We promote CSR activities throughout the value chain.*
Together with
Our Business Partners
We build a trusted identity as a contributing member of the global community by making contributions to the development and prosperity of local communities.
Together with
Local Communities
Organizational governance
Community involvement and development
Organizational governance
Consumer issues
*The overall series of activities or stakeholders providing or receiving products or services.
Human rights Labour practices
Fair operating practices Organizational governance
We value and develop our people, and create opportunities for people.
Together with
Our Employees
Human rights
Labour practices Organizational governance
