Yokogawa Electric : Sustainability Report

About this update from Yokogawa Electric Corp.

YOKOGAWA Cc-innovating tomorrow ‌The Yokogawa Philosophy and History of Sustainability For Yokogawa, sustainability and business activities are inseparable. Under Yokogawa's Purpose, "Utilizing our ability to measure and connect, we fulfill our responsibilities for the future of our planet," Yokogawa has set the sustainability goals as "Three Goals" for the society we aim to achieve by 2050, and continues to make persistent efforts to realize a sustainable society. Founding Principles Quality first Pioneering spirit Contribution to society The Yokogawa Philosophy As a company, our goal is to contribute to the realization of a sustainable society through broad-ranging activities in the areas of measurement, control, and information. Individually, we aim to combine good citizenship with the courage Statement on Yokogawa's Aspiration for Sustainability Yokogawa aims to achieve net-zero emissions, ensure the well-being of all, and make a transition to a circular economy by 2050, making the world a better place for future generations. We will undergo the necessary transformation to achieve these goals by：1) becoming more adaptable and resilient, 2) evolving our businesses to engage in regenerative value creation, and 3)promoting co- Yokogawa's Purpose Utilizing our ability to measure and connect, we fulfill our responsibilities for the future of our planet. Aspiring to address social issues by leveraging Yokogawa's ability to measure and connect, we formulated Yokogawa's to innovate. Revised in 2022 innovation with our stakeholders. Purpose. 1915 1980 1990 2000 2010 2020 2025 1915 Founded 1988 Established the Yokogawa Philosophy 1994 Established our corporate Code of Conduct 2009 Joined the Global Compact 2009 2015 Established the Yokogawa Corporate Governance Guidelines 2017 2020 Established Yokogawa Group Human Rights Policy 2021 Established Yokogawa's Purpose 1999 Established the Supply Joined in WBCSD (World Business Council Defined six contribution areas toward 2030 Began publishing our Environmental Report (currently known as the Sustainability Report) Chain CSR Guidelines (currently known as the Sustainable Procurement Guidelines) for Sustainable Development) 2017 Announced the Statement on Yokogawa's Aspiration for Sustainability and set the "Three Goals" as sustainability goals for 2050 2019 Announced our support of the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) 2022 Established the Sustainability Committee 2023 Acquired Science Based Targets (SBT) Certification for greenhouse gas emission reduction targets 2024 Launched the Growth for Sustainability 2028 (GS2028) Medium-term Business Plan Endorsed the recommendations of the Taskforce on Nature-related Financial Information Disclosures (TNFD) and registered as a TNFD Adopter 1 ‌Editorial Policy This report discloses information about the sustainability of the Yokogawa Group. This information is based on the GRI Standards, the global guidelines for the disclosure of sustainability information, and includes the disclosure of Yokogawa's priority issues in view of the opinions of our stakeholders. Further, Yokogawa has obtained external assurance to increase the reliability of the information. In the Sustainability Report for this fiscal year, we disclose the progress and performance results for various metrics of GS2028, which aims to contribute to sustainability while expanding business growth. The report also includes specific examples of our contributions to addressing in collaboration with our customers. In addition, we explain the contents of two newly formulated policies: the "Trusted Green," a sustainability policy that considers the entire product supply chain and life cycle, and the "AI Policy." Please see the Yokogawa Report (Integrated Report) for financial information and ESG information closely related to our business strategies. The GRI Standards Index is shown on our website. 2025 Yokogawa Sustainability Report Cover Concept On a clifftop, small yet resilient flowers bloom, swaying in the wind. They embody Yokogawa's commitment to steady progress toward a sustainable society, even as social issues grow more complex. Surrounding them, the grassy field, the vast sea below, and the clear blue sky symbolize the transparency of our activities and our bold spirit of challenge-guided by a broad perspective and a deep respect for living in harmony with nature. Period Covered by Report Fiscal year 2024 (April 1, 2024, to March 31, 2025) This Report also includes some information on major activities in prior years and some of the latest information in fiscal year 2025. Scope of Report Yokogawa Electric Corporation and all its consolidated subsidiaries Where the scope is different, a note is added to the relevant data. Timing of Publication October 2025 (published annually) Intended Readership This Report is intended for a wide range of stakeholders, including customers, shareholders, investors, business partners, employees, local communities, NPOs, NGOs, and governments. Company Names In this Report, "Yokogawa" and "Yokogawa Group" refer to Yokogawa Electric Corporation and all of the consolidated subsidiaries. "Yokogawa Electric" and "Yokogawa Electric Co." refer to Yokogawa Electric Corporation. Reference Guidelines GRI Standards (Global Reporting Initiative) Environmental Reporting Guidelines 2018 (Ministry of the Environment, Japan) Company Profile (as of March 31, 2025) Corporate Name: Yokogawa Electric Corporation Paid-in Capital: 43,401 million yen Headquarters 2-9-32 Nakacho, Musashino-shi, Tokyo 180-8750, Japan Number of Employees: Subsidiaries 17,670 (Yokogawa Group) 2,242 (Yokogawa Electric Co.) 115 outside Japan Founded: September 1, 1915 Information Disclosure Framework Results Yokogawa comprehensively discloses its value creation story in the Yokogawa Report, which provides a summary based on medium- to long-term impact with regard to corporate value and business models, and in the Yokogawa Sustainability Report, which summarizes the Company's impact on society and the environment. and Affiliates: 13 in Japan Impact on society and the environment Annual Securities Report Impact on corporate value and business Yokogawa Report Yokogawa Sustainability Report Medium- to long-term perspective Further information is disclosed on our website. Information Disclosed URL Yokogawa Electric Corporation's website https://www.yokogawa.com/ Yokogawa Report https://www.yokogawa.com/about/ir/reports/annual/ Sustainability Data https://www.yokogawa.com/about/sustainability/sustainabilityinfo/ sustainability-data/ GRI Standards Index https://www.yokogawa.com/about/sustainability/sustainabilityinfo/gri/ Climate Strategy (Response to TCFD) https://www.yokogawa.com/about/sustainability/climate-strategy- response-to-tcfd/ Nature-related Disclosures (Response to TNFD) https://www.yokogawa.com/about/sustainability/initiatives-for-biodiversity-response-to-tnfd/ 2 ‌2025 Yokogawa Sustainability Report 2025 Introduction Our Goals Our Stories Social Environment Governance Information Yokogawa Sustainability Report Chapter 2 Our Goals 11 Chapter 5 Environment 40 Contents 12 Yokogawa's Vision 13 Materiality Analysis 14 Sustainability Indicators Sustainability Transition Sales 15 Sustainability Indicators Social Impact Indicators 41 Environmental Management 43 Environmental Practices 44 Initiatives toward Achieving Carbon Neutrality 48 Environmental Initiatives at Business Facilities Chapter 1 Introduction 1 Chapter 3 Our Stories 16 Chapter 6 Governance 51 The Yokogawa Philosophy and History of Sustainability Editorial Policy Contents Highlights of the 2025 Yokogawa Sustainability Report Message from the President 7 Yokogawa Business Overview 10 Stakeholder Engagement 17 Stories from Our Business Segments 21 Case Study of Contribution Concept for AI Solutions - AI First Manufacturing Sustainability Guiding Principles Covering the Product Lifecycle - Trusted Green 52 Sustainability Governance 54 Risk Management 56 Code of Conduct and Compliance 60 AI Governance 61 Supply Chain Management 64 Information Security 67 Privacy and Data Protection 68 Quality Assurance How to use this Sustainability Report ◯◯◯◯◯◯◯◯◯◯◯ In this report, navigation features are available for moving between pages and for opening external websites. Chapter 4 Social 28 29 Human Resource Management 32 Comfortable Work Environment 35 Occupational Health & Safety 37 Respect for Human Rights ◯◯◯◯◯◯◯◯◯◯◯ 39 Community Engagement Chapter 7 Information 69 Sustainability Data Third-Party Verification and External Evaluations * Open an external website Move to the relevant page □□□□□□□□□ Move to the relevant page Clicking on an item of the Index Guide available on the top of each page, or an item in the Contents page of this PDF file will bring you to the relevant page. 3 ‌2025 Yokogawa Sustainability Report Introduction Our Goals Our Stories Social Environment Governance Information Highlights of the 2025 Yokogawa Sustainability Report Message from the President Case Study of Contribution Sustainable Products Guided by the Yokogawa spirit that has been carried forward since our founding, we work together with our customers to Through the delivery of SCADA systems, we contribute to ensuring P.21 a stable supply of water. Achieving safe and efficient operation of copper mine projects P.22 together with customers Supporting cancer research through a subcellular sampling system that performs P.23 lipid-based analysis at a single-cell level We established the "Trusted Green" as our sustainability policy that considers the entire product supply P.5 P.24 pursue the realization of a sustainable society. Contributing to customers' CO 2 emissions reduction and development of more sustainable power infrastructure with our high-precision measurement technologies Contributing to customers' energy conservation and P.25 CO 2 emissions reduction by minimizing wasteful steam consumption using remote-monitoring solution for steam traps chain and lifecycle. P.27 Human Resource Management Initiatives Toward Achieving Carbon Neutrality Leveraging and Governance of AI P.44 P.29 We achieved a record-high employee engagement score of 82% . We aim to further increase this. We are making steady progress with actions to achieve net zero fiscal year 2030 Scope 1 and 2 emissions. As a result of cooperation with suppliers, Scope 3 emissions decreased year-on-year. We are contributing to solving customers' issues by leveraging Yokogawa's AI. P.60 P.26 We formulated the "AI Policy" which sets out our stance on AI governance. Sustainability Management Governance Strategy Risk Management Metrics and Targets Yokogawa regards sustainability as a key management issue and is continuously working on the We incorporate sustainability into management strategy, aiming to both expand our contributions to society The Company has established a risk management system and appropriately controls We have established medium- to long-term metrics and manage progress to achieve the Three Goals. improvement of governance . and the environment while achieving P.12 P.52 significant business growth . sustainability-related risks . P.14 Sustainability transition sales Sustainability Governance Yokogawa's Vision Risk Management P.15 P.54 Social Impact Indicators 4

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