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CSR and Environmental Management

CSR and Environmental Management Promotion Framework

Twice a year, we hold a CSR Council where our company Chairman and CEO serves as a chairperson, and an Environmental Council where our company President serves as a chairperson. These councils are part of an organizational framework that was set up to discuss and develop plans for addressing the social responsibility issues currently Yokohama Rubber Group is facing. Matters with a material impact on management are submitted to the Management Meeting for approval.
We have three task forces, two sub-councils, and five committees who promote environmental activities as sub-bodies within the Environmental Council. Every year the CSR Council and Environmental Council evaluate the performance of CSR activities carried out by the Group in accordance with the critical issues of the Yokohama Rubber Group and develops plans for improvement in the subsequent fiscal year.
To pursue our efforts on practicing consistent and high-level environmental management in all our operations worldwide, we also annually hold a Global Environment Promotion Council, which is a gathering by managers from all of our overseas production operations. The council for FY 2014 was held on December 12 to engage in discussions focusing on promoting CSR and environmental activities at the overseas production operations and core distribution subsidiaries. Furthermore, in order to incorporate regional circumstances overseas, in FY 2014 an Environment Council has held by production and sales offices in China and Thailand in an aim to promote area management. There are plans to hold Environment Council for North America during FY 2015 for the global expansion of area management for CSR and environmental management.

CSR and Environmental Management Promotion Framework

Vision for FY 2017

Important Issues of the Yokohama Rubber Group

In order to build a trusted identity as a contributing member of the global community, Yokohama Rubber Group acts in accordance with the Yokohama Rubber Group Action Guidelines together with its stakeholders that include customers, shareholders and investors, business partners and suppliers, and employees.
To this end, the Yokohama Rubber Group has specified the following critical issues in reference to benchmarks including the GRI Guidelines and ISO26000, and conducts activities in response as the Critical Issues of the Yokohama Rubber Group.

As a company with a trusted identity as a contributing member of the global community, the Yokohama Rubber Group creates and provides to society the following forms of value while implementing the strategy of the medium-term management plan GD100 based on the Action Guidelines in order to move forward together with stakeholders.

Stakeholders Yokohama Rubber's Important Issues Activities Issues
Global environment We challenge to build a sustainable society in harmony with the environment, to protect our blue planet and human beings.
  • Achieve a 50% reduction in CO2 emissions compared to 2005 by 2050 in business activities including the value chain.
  • Turn all of Yokohama Rubber's products into environmentally-friendly products (reduce the environment burden by at least 5%) by FY 2017.
  • In response to the increase in overseas business locations, establish long-term targets for emissions per unit management and conduct ongoing CO2 emission reduction activities.
  • Work together with customers, business partners, and suppliers and develop more advanced environmental technologies in order to develop environmentally-friendly products.
Local communities We build a trusted identity as a contributing member of the global community by making contributions to the development and prosperity of local communities.
  • Promote the conservation of biodiversity and for abundant nature in the future in order to ensure sustainable operations in regions where there are production bases.
  • Contribute to the resolution of social issues through social contribution activities in order to live in harmony with regions where there are business locations.
The following issues are associated with the increase in the number of overseas business locations.
  • Identification of the environmental risks and deployment of effective conservation activities in regions where there are production bases.
  • Identification of the social issues and selection/deployment of effective social contribution activities in regions where there are business locations.
Customers We supply safe and secure products through manufacturing focused on the heart and technology.
  • We will take advantage of the voices of our customers to develop products that live up to their expectations and deliver them to the market in a timely manner.
  • We will fully devote ourselves to responding to all complaints.
  • We will achieve a global new car installation rate of 10% by FY 2017.
  • Establish a framework capable of providing products in line with the performance requirements for each market around the world.
  • With local production and local consumption as a general rule, promote the global standardization of materials evaluation and the management of product development, manufacturing, and quality.
Shareholders and investors We improve our company value by growing business opportunities.
  • We will achieve the targeted business growth based on the GD100 strategy.
  • We will contribute to the resolution of global environmental, social, and economic issues through our business.
  • Deploy internal control on a global level in accordance with the Action Guidelines.
  • Identify CSR issues at overseas business locations where we are expanding and establish improvement schemes through business activities.
Business partners and suppliers We promote CSR activities throughout the value chain.
  • Promote exchange and cooperation with business partners and suppliers in order to implement CSR activities in an effort to resolve issues.
  • Promote collaboration in CSR activities with the supply chain involved in natural resources such as natural rubber.
Employees We value and develop our people, and create opportunities for people.
  • Offer systems at all business locations so that everyone who works at the Yokohama Rubber Group can feel secure in their livelihood and achieve high goals.
  • Conduct satisfaction surveys to rectify issues and make improvements.
  • Develop environments (working conditions and education & training) that make it easy to work in accordance with the Action Guidelines while giving consideration to the culture and customs of each business location.

Environmental Management System

Enforcement of Global Environmental Management Based on ISO14001

We aim to keep up with the high-quality environmental management under the same standard both in domestic and overseas group companies; thereby we have placed ISO14001 which is the international standard of Environmental Management System as the basis of our management.
We are trying to get all our operation sites to obtain ISO14001; so far, a total of 15 operation sites in Japan, comprising ten from Yokohama Rubber and five from our group for domestic operations have obtained it, whereas overseas a total of 13 operation sites have been certified.
Note that during FY 2012, ISO14001 integrated certification was acquired for the integrated environmental management of Yokohama Rubber’s ten production bases and the head office, reflecting the high level of homogenization.
In addition, our non-manufacturing sites are promoting environment management in accordance with ‘Environment GD100’ and our approach to the environment.
The Yokohama Rubber head office and systems company in Japan and Group distribution subsidiaries in Australia and Taiwan have acquired ISO14001 certification, under which they are further advancing their environmental management.

Execution of Comprehensive Environmental Audit

We are conducting audits as to continual progression for improvement on the management system of environmental management, improvement on the environmental performance, and minimizing environmental risks per operation unit by conducting internal audits of business locations as a first-party audit, corporate wide environmental audits by the CSR and Environmental Affairs Department as a second-party audit, and an external audit as a third-party audit every year (all audits are based on ISO14001).
Also, our CSR and Environmental Affairs Department is checking and verifying the score of self-evaluation at each business site in accordance with the guidelines of the Environment GD100 for domestic distribution companies within our group.
Incidentally, there was no suspected item as to any violation against environmental legislation among all the auditing items in FY 2014.

Internal Audit

According to our manual of ISO14001:2004, we conducted likewise at all our operation sites in FY 2014 as well. Through our internal audit, we work to continually improve the level of our environmental management system. We conducted our audit not just to operate and maintain our environmental management system, but also by setting our common themes as whether our system is duly functioning for our purposes, whether each of our group is walking the talk by reviewing and setting up the guidelines, purposes, and target by shifting more focus on the reduction of environmental burden even more proactive manners during their normal business activities.

Company-Wide Environmental Audit

In order to make overall improvements to environmental management and work towards the cross deployment of key issues, corporate wide environmental audits are conducted by the CSR and Environmental Affairs Department.
In FY 2014 as well, we thoroughly audited the chemical substance control system mainly for our production sites.
Also, we focused on the promotion of various activities to contribute to the society from the perspective of CSR and the level of communication with local residents in the audit.

External Audit

During FY 2014, an integrated EMS certification registration audit was conducted by an ISO audit registration organization that covered all of Yokohama Rubber’s production bases and its Headquarters, and as a result certification was acquired.
No serious flaws with our management system were pointed out during the audit. We are currently preparing for the transitional audit in FY 2015 in response to the revision in ISO14001:2015.

Enforcement of Environmental Training and Education

Environmental Training

We have incorporated environmental training as one of the subjects for newly hired employees. Also, we are holding a Techno College which is CSR and environmental training by targeting our technicians and staff member who have been with our company for two to three years. Incidentally, a total of 30 persons attended this seminar in FY 2014.
Meanwhile, in order for our managerial and supervisor level employees to thoroughly understand ISO14001, we are conducting training classes for environmental internal auditors. Including 132 personnel who have completed this course to get certified in FY 2014, currently a total 1,848 personnel have been registered and are already active as our internal auditors.
We conducted skill improvement seminars to further improve the skill levels of employees with internal auditor qualifications. Lecturers from external educational institutions were invited to provide training on ISO14001 audit methodologies for a total of 12 environmental operations employees and lead auditors.

Enhancement of Education Activities

As part of our environmental education activities, we conduct improvement activities by getting involved with our entire personnel by sending our President’s message towards all our employees in the Energy Saving Month in February and the Environment Month in June every year. During our Environment Month in June, we are internally gathering environmental slogans and environmental posters from all our employees In FY 2014, we were able to receive 6,001 entries for slogans and 107 entries for posters in Japan and 369 entries for slogans and 153 entries for posters overseas.

President's Award for Environmental Contribution

As a part of our strategy to raise awareness and enlighten with regards to the environment through our work operation, we have established a President’s Award for Environmental Contribution system. The fields for the award consists of a Factory Award for the production group, a Products Award for the groups of development and designing of environmentally-friendly products, and an Office Award for secretarial groups such as sales and administrative teams, as well as a Special Award that has been established for especially unique product development efforts and initiatives.
We select these upon screening and reviewing as to their activities for the past one year per case description of their field from all our groups of our entire corporation. The award winning groups from each award will receive the certificate from our President every year.
By implementing this President’s Award for Environmental Contribution, it is evident that all our employees can have an even better awareness of getting involved with environmental contribution from their daily operation work.

The President’s Award for Environmental Contribution in FY 2014

Fields of Environmental Contributions Award Award Winning Groups
Environmental Factory Award Top Award for Excellence Hangzhou Yokohama Tire Co., Ltd.
Environmental Product Award Top Award for Excellence LPG NA6 Hose and Couplings Engineering Dept.
Environmental Office Award Top Award for Excellence YOKOHAMA Europe Gmbh
Award for Excellence Zero Toluene Award Ibaraki Plant
Local Communication Award Y.T.Rubber Co.,Ltd
Recycling Award Airlock recovery and solidification kit Okamatsu Laboratory

Environmental Accounting

Environmental conservation costs

(Millions of yen)

Item Major initiatives FY 2013 FY 2014
Business area costs Investments Costs Investments Costs
Pollution prevention costs Setting industrial water and wastewater treatment tank above ground/ Renewal for boiler smokestacks, etc. 81 114 23.06
Global environmental conservation costs Adopting PM motors, updating air conditioning and temperature control equipment, etc. 596 473 0.86
Resource recycling costs Costs related to waste segregation and processing 0 380 0 331
Upstream and downstream costs Expenses for reuse of tire bladders and plastics liners for rubber take-up 0 42 0 45
Management activity costs EMS maintenance, management, and information disclosure costs 0 242 0 248
Research and development costs Research and development costs for reducing the environmental burden 1,586 10,120 4,567 10,412
Social activity costs Otsuchi Town tree planting activities, Live EcoMotion*, biodiversity activities, etc. 0 205 0 61
Environmental remediation costs Reserves for PCB processing, etc. 0 760 0 473
Subtotal 2,263 11,748 5,154 11,594
Total 14,011 16,748

Economic effects and environmental conservation effects

The environmental conservation effect was 1,421 million yen as a result of cost reductions through the use of recycled products, energy conservation activities, and gains through the sales of wastes.
CO2 emissions were reduced by 5,000 tons year on year.

Economic effect

(Millions of yen)

Type of effect Major initiatives FY 2013 FY 2014
Profits Profits gained from wastes and recycling from business activities 95 88
Cost reduction Cost reductions through energy conservation 112 144
Cost reductions through the use of recycled products 1,376 1,271
Total 1,583 1,503

Environmental conservation effects

Type of effect Year-on-year reduction
FY 2013 FY 2014
Greenhouse gas emissions (thousand tons, CO2) 10 5
VOCs emissions (tons) 72 22
Waste reclamation quantity (tons) 0 0
Waste emissions (tons) 1,914 273

* Zero emissions achieved domestically in FY 2010

Environmental efficiency

Greenhouse gas indicator
Index of sales/greenhouse gas emissions, with the 100 for the base year (FY 2005)

VOCs indicator
Index of sales/VOC emissions, with the 100 for the base year (FY 2005)

Industrial waste emission indicator
Index of sales/industrial waste emissions, with the 100 for the base year (FY 2005)