• Yokogawa Sustainability Report

Utilizing our ability to measure and connect, we fulfill our

responsibilities for the future of our planet.

(Yokogawa's Purpose established in 2021)

Aspiring to address social issues by leveraging Yokogawa's ability to measure and connect,

we adopted Yokogawa's Purpose. No single organization or system alone can solve the serious issues the world faces, such as climate change, plastic and waste, and COVID-19.

We need to look for ways to address issues by assessing situations, sharing various information, and organically connecting organizations and systems.

It is also important to respect the human rights of all people and build a world without discrimination as our basic premise. Yokogawa will continue to seek reform together with stakeholders around the world, striving to make the world a better place for future generations.

Statement on Yokogawa's Aspiration for Sustainability

Yokogawa will work to achieve net-zero emissions, ensure the well-being of all, and make a transition to a circular economy by 2050, thus 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-innovation with our stakeholders.

(Formulated（2017in年2017)制定）

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 to innovate..

2023 Yokogawa Sustainability Report 1

Introduction

Our Goals

Our Stories

Social

Environment

Governance

Information

Contents

01 Introduction

03

Message from the President

05

Yokogawa Business Overview

05

Business

06

Network

07

Technology

09

08

Extensive Achievements and Transformation

Stakeholder Engagement

11 Our Goals

  1. Sustainability Goals "Three goals"
  2. Six Contribution Areas
  3. Setting Contribution Areas Based on Materiality Analysis
  4. Indicators for Six Contribution Areas (Social Impact Indicators)
  5. Indicators for Six Contribution Areas (Business Activity Indicators)

17 Our Stories

18 Our Stories of Growing our Businesses and Contributing to Society

20

1. Achieving Carbon Neutrality

22

2. Improving Efficiency in Society & Industry

25

3. Optimizing Plant Lifecycle & Protecting

Environment

27

4. Improving Health & Safety

32

5. Creating a Resource-Recycling Ecosystem

33

6. Creating Workplaces Where People Can

34

Fulfill Their Potential

Climate Risks and Opportunities Response to TCFD

39

Biodiversity-related Disclosure Response to TNFD

41 Social

42

Human Resource Management

45

Safe and Comfortable Work Environment

50

Respect for Human Rights

52

Community Engagement

53 Environment

54

Environmental Management

56

Environmental Practices

57

Greenhouse Gas (GHG) Emissions Reduction

61

Environmental Initiatives at Business Facilities

63 Governance

  1. Sustainability Governance
  1. Risk Management
  1. Code of Conduct and Compliance
  1. Supply Chain Management
  1. Information Security
  1. Quality Assurance

79 Information

  1. Sustainability Data
  2. Third-partyVerification
  3. Company Profile / Editorial Policy

2023 Yokogawa Sustainability Report 2

Introduction

Our Goals

Our Stories

Social

Environment

Message from the President

We are moving forward with our contributions and growth while refining Yokogawa's unique strengths

Understanding changes in our business environment to enhance our ESG management

Based on Yokogawa's Purpose, which reads, "Utilizing our ability to measure and connect, we fulfill our responsibilities for the future of our planet," we focus on the environment, society, and governance (ESG) in our management.

Environmental and social issues grow increasingly serious year by year, and we have witnessed a variety of events over the past year. At the COP27 international climate change conference, which was held in November 2022 in Egypt, the participants reaffirmed the importance of limiting the global temperature increase to no more than 1.5°C above pre-industrial levels (the 1.5°C goal). And the COP15 international biodiversity conference, which was held in Canada in December 2022, saw the adoption of the Kunming-Montreal Global Biodiversity Framework, which includes nature- positive goals. Amid the heated debate on measures to address environmental issues at international conferences such as these, it has become clear that any delay in their implementation will result

in an even more serious environmental crisis, as seen in developments such as the average global temperature for July 2023 being the highest on record for any month.

In light of such changes, at Yokogawa we are working to further enhance our ESG management. So far, we have defined "Three goals" for sustainability as our vision for society in the year 2050, and in the Accelerate Growth 2023 (AG2023) mid-term business plan that was formulated in fiscal year 2021, we employed a materiality analysis process to select six areas where we will contribute toward their achievement. In line with these six contribution areas, we perceive the task of resolving the social issues faced by our customers as business opportunities, and we will make contributions and achieve growth in each of our businesses. In last year's Yokogawa Sustainability Report, the article "Story of growing our businesses and contributing to society" summarized this process. This year, we have expanded on this and are presenting stories on all our focus areas. Also, we have worked for some time to strengthen governance, the foundation for our contributions and growth, focusing on the Board of Directors, which engages in vigorous discussions on various ESG issues. The Sustainability Committee, which was established in 2022 as an advisory body to the Management Board, has engaged in discussions on a broad range of topics, such as materiality analysis and the formulation of the above-mentioned "Story of growing our businesses and contributing to society." Committee meetings are chaired by myself and attended by all executive officers. This fiscal year, we are promoting ESG management with the intention to further integrate our contributions and business growth, and are pushing ahead with deeper discussions of matters such as Scope 3 GHG emissions reduction strategies and product resource recycling.

Governance

Information

President and CEO

2023 Yokogawa Sustainability Report 3

Introduction

Our Goals

Our Stories

Social

Environment

Governance

Information

Message from the President

Expanding business opportunities by contributing to sustainability

Over the past year, I have visited our customers in various regions and industries. With society facing ever more serious issues, I have gained a first-hand appreciation of the challenges that industries are taking on. In Europe, for example, the shift to a hydrogen economy is accelerating, amidst the energy transition trend.

Under AG2023, we have established three industry business subsegments under our main control business that match up with our customers' industry sectors: Energy & Sustainability, Materials, and Life. This structure enables us to provide our products and solutions to customers in diverse industries and contribute to a wider range of areas. With our customers facing increasingly diverse and complex issues, I sense that they are responding positively to the solutions we are providing that leverage Yokogawa's strengths, such as the ability to integrate information technology (IT) and operational technology (OT), based on our extensive project track record. For example, Yokogawa is in charge of optimizing operations as the main automation contractor for a green hydrogen project at the Port of Rotterdam in the Netherlands. Also, at a chemical plant in Japan, we have successfully field-tested an AI solution that autonomously controlled a distillation column that previously has been controlled manually. In addition to maintaining quality and reducing workload, the system reduced both steam consumption and CO2 emissions by 40%.

These are only a couple of our many initiatives. We will continue to work with our customers to zresolve the various issues arising from social and environmental changes.

The growth of our employees creates Yokogawa's future

I believe that Yokogawa's strength lies in its resilience and its capacity to transform itself to adapt to changing circumstances. At the same time, the business environment continues to change at an ever greater speed, and it is vital that we boldly step ahead and take on the challenge to transform. To achieve this, the growth of each employee is ever more important.

Yokogawa is a global company, with approximately 70% of our net sales generated overseas. Our organization brings together personnel with a wide range of experience, perspectives, and cultural backgrounds, and so initiatives for diversity, equity, and inclusion are extremely important to us. When diverse people are gathered together, it gives rise to something like a chemical reaction, generating new perspectives and methods that go beyond conventional ways of thinking and doing things. Along with this diversity in perspectives and methods, collaboration with other companies also fuels transformation. The cumulative results of this transformation will mold Yokogawa's future.

In addition to accelerating this transformation, we are promoting various initiatives to cultivate a corporate culture and organizational environment that encourages employees to make proposals and take on challenges. We will link together the growth of each of our employees to create Yokogawa's future.

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Yo kogawaco

Three goals and six contribution areas

Six contribution

Priority issues

areas

Achieving carbon

Reducing GHG emissions and enabling

the transition to affordable, reliable, and

neutrality

sustainable forms of energy

Improving efficiency

Optimizing production, enabling autonomy,

and facilitating the efficient use of resources

in society & industry

and energy through DX

Optimizing plant

Supporting both the long-term optimal

lifecycle & protecting

operation of plant assets and the reduction

environment

of their environmental footprint

Improving health &

Promoting life-related innovation and

safety

improving safety in plants and communities

Creating a resource-

Fostering the development of the

recycling ecosystem

bioeconomy and a circular economy

Creating workplaces

Establishing an equal opportunity

where people can

workplace where employees can be treated

fulfill their potential

with dignity and fulfill their potential

2023 Yokogawa Sustainability Report 4

Introduction

Our Goals

Our Stories

Social

Environment

Governance

Information

Yokogawa Business Overview

Business

Yokogawa contributes to solving social issues, utilizing its ability to measure and connect.

We have divided the control business, our main business, into three industry subsegments: Energy & Sustainability, Materials, and Life. That allows us to provide products and solution services that can solve issues of customers in various industries and social issues.

Energy & Sustainability

The energy & sustainability business segment protects the environment by supporting the effective use

of energy and contributing to the realization of a sustainable society. Capitalizing on its expertise and strong customer relationships in the oil & gas, petrochemical, renewable energy, power, energy management, and energy storage fields, Yokogawa supports safe and optimal operations throughout the increasingly diversified energy supply chain, from production and supply through to use, disposal, and recycling.

Oil & gas

Petrochemical

Renewable energy

Power

Energy management

Energy storage

Areas for exploration

Materials

The materials business segment is helping to bring about a circular economy that offers comfort and convenience and is in harmony with the environment. For our customers in the specialty chemicals, biomass materials, pulp & paper, textiles, steel, non-ferrous metals, mining, mobility, and electrical/electronics fields, we provide solutions that improve productivity, reduce environmental impact, and save energy.

Specialty chemicals

Biomass materials

Pulp & paper

Textiles

Steel

Non-ferrous metals

Mining

Mobility

Electrical/electronics

Life

The life business segment provides solutions that support people's lives and protect health and safety. In addition to our activities in the pharmaceuticals and healthcare fields, we are engaged in businesses that ensure everyone has access to safe water and food. To improve productivity throughout the pharmaceutical and food value chains, we utilize the sensing and control technologies that Yokogawa has developed over the years to support innovations in product and production processes. In the water field, we aim to create new value by using the measurement technologies that have been acquired through our activities in such fields as genome analysis and scientific instrumentation.

Pharmaceuticals

Healthcare

Food

Water

Disaster prevention, space, and ocean

Measuring Instruments,

New Businesses and Other

The measuring instruments business helps our customers achieve technological innovation. We provide total solutions, including software and services to customers in three industrial fields (decarbonization, telecommunication, and well-being), making full use of high- precision measuring technology. Our new businesses include bio-related businesses.

Measuring instruments

Energy

Info-comm

Healthcare

New businesses and other amnimo Inc.

Bio-related businesses

2023 Yokogawa Sustainability Report 5

Introduction

Our Goals

Our Stories

Social

Environment

Governance

Information

Yokogawa Business Overview

Network

Yokogawa conducts business in more than 80 countries around the world. We are actively recruiting local human resources at each location and have built trust with customers and local communities over many years. Moreover, based on our corporate philosophy, we are engaged in businesses for the realization of a sustainable society as good citizens.

Employees by Region

Global Network Supporting Business Growth

(At the end of FY2022)

6.�%

Netherlands

China

United States

Yokogawa Europe B.V.

Yokogawa China Co., Ltd.

Yokogawa Corporation

��.�

6.�%

of America

Service Network

%

��.8%

■ Japan

Korea

��,���

Countries and

■ Asia and Oceania

Bahrain

Yokogawa Electric Korea Co., Ltd.

■ Europe and CIS

sites served

employees

■ North and South America

Yokogawa Middle East &

200+

��.�

%

■ Middle East and Africa

Africa B.S.C. (c)

YokogawaJapan

Electric Corporation

Brazil

India

Singapore

Service sites

Yokogawa America do

180+

Yokogawa India Limited

Yokogawa Engineering Asia Pte. Ltd.

Sul Ltda.

2,500

Business sites

Subsidiaries and Affiliates

Manufacturing sites

Service engineers

World Headquarters/

countries

in Japan

outside Japan

countries

+

Regional Headquarters

(At the end of FY2022)

Manufacturing sites

60

13*

115

12

Includes branches and representative offices

Activities with External Organizations

2009

Joined the Global Compact (United Nations)

This report covers initiatives for addressing the Compact's ten principles for four areas (human rights, labor, the environment, and anti-corruption).

2017

Joined the WBCSD*

  • World Business Council for Sustainable Development

We are participating in projects for sustainable development.

2019

Expressed support of the TCFD* recommendations

* Task Force on Climate-related Financial Disclosures

We disclose information in accordance with TCFD recommendations.

For more details, see the Climate Risks and Opportunities (Response to TCFD) page.

2023 Yokogawa Sustainability Report 6

Introduction

Our Goals

Our Stories

Social

Environment

Governance

Information

Yokogawa Business Overview

Technology

Yokogawa contributes to solving social issues through its ability to measure and connect, which has developed throughout its history.

The Ability to Measure

The origins and starting point for Yokogawa's business lie in measurement. We seek value in the information that is derived by measuring things, grasping their current state, and making predictions.

Based on its ability to measure things, Yokogawa continues to provide value and support industries by offering oscilloscopes, power analyzers, optical test equipment, and other high-precision measuring instruments that are commonly referred to as "the mother tools of industry." For use in plant facilities, the company also provides a full range of field instruments, including flowmeters, pressure and temperature transmitters, and process analyzers.

The Ability to Connect

By connecting, Yokogawa not only combines valuable information, but also builds trusted relationships with customers from multiple industries and brings together companies and industries, giving resonance to the value that the company creates.

Yokogawa has cultivated its ability to connect by offering control systems and solutions that provide a solid footing for highly efficient and safe plant operations and the production of high-quality products. The company has broadened its offering of solutions to cover entire value chains and supply chains, and aims to expand its collaboration to take the creation of value even further.

Main Product and Solution Portfolio in the Control Business

At Yokogawa, we integrate our high-quality, highly reliable products and solutions, from the measurement and control technologies we have developed over many years to leading-edge technologies such as digital twins and AI, to solve the issues faced by our customers and contribute to resolving social issues.

Control

Energy & Sustainability Business

Materials Business

Life Business

Business

We provid comprehensive

Technology)

Optimization at

Corporate

Supply chain &

products, services, and

Production

Feedstock

Energy carbon

solutions from on-site to the

Corporate

strategy

logistics

management level

management

and business

planning/

management/ management/

ERP management/

(InformationIT

(SCM/ERP)

planning

optimization

optimization

optimization

optimization

Security

Optimization of

Production

Advanced

Quality

Asset lifecycle

Safety

Operational

and Solutions

factory operation

management/

control and

management/

risk

Industrial Cloud

(MES)

optimization

optimization

optimization

optimization

management

management

Applications

Operation/

Technology)

Monitoring/

Control/Safety

Distributed control systems

Safety instrumented

Programmable logic

Collaborative

systems

controllers

information

OT(Operational

server

Data generation

Field instruments

and acquisition

Process analyzers

IIoT

Data acquisition systems

Film/sheet

Distributed

Pressure and temperature transmitters

Wireless transmitters

Process gas

wireless

Paperless recorders,

thickness

temperature

Coriolis/magnetic/vortex/variable

chromatographss

sensors

data loggers

gauges

sensors

area flowmeters

Consulting

Design &

Lifecycle

engineering/

Installation

Training

services

system

integration

2023 Yokogawa Sustainability Report 7

Introduction

Our Goals

Our Stories

Social

Environment

Governance

Information

Yokogawa Business Overview

Extensive Achievements and Transformation

Yokogawa has contributed to solving the issues faced by its customers and society around the world. We will build on our extensive achievements as we continue to transform ourselves to further expand our contribution and growth.

Building on Yokogawa's Extensive Delivery Track Record to Achieve Contribution and Growth

Since its foundation in 1915, Yokogawa has been contributing to social development by providing innovative products and solutions to industries based on its measurement, control, and information technologies. Over the six decades since we began our global business development rooted in local communities, Yokogawa has undertaken over 40,000 projects worldwide. By expanding into diverse industries, we boast a high market share not only in Japan, but also in the Middle East, China, ASEAN, and other resource-rich regions and emerging countries.

This extensive track record of deliveries testifies to the relationships of trust we have built with customers over many years. It is the foundation for Yokogawa's sustainable growth and contribution to solving social issues.

Europe and CIS

China

9.9%

North America

15.6%

Japan

9.5%

Middle East

India

27.1%

and Africa

Central and

14.0%

4.3%

Southeast Asia

South America

and Far East

3.5%

16.0%

Fiscal year 2022 control business net sales by region

Transforming to Further Expand Contribution and Growth

Amid dramatic changes in the business environment, companies are expected to take an ever greater part in solving social issues. Yokogawa perceives these changes as a business opportunity. We will strengthen our ability to measure and connect, transforming into a company that continues to create value. Under our mid-term business plan, Accelerate Growth 2023 (AG2023), we are expanding our contribution and growth capabilities, including through the utilization of M&A and alliances, to widen the range of solutions we provide and strengthen industry responsiveness.

Main Topics in Fiscal Year 2022 (New Companies, M&A, and Alliances)

Expanding the range of solutions we provide

Established Yokogawa Digital Corporation to support DX in the manufacturing industry Invested in Waylay NV, a leading enterprise software company in Belgium

Acquired Votiva Singapore Pte. Ltd. to accelerate the growth of our ERP business in Southeast Asia

Acquired Fluence Analytics, Inc., a pioneer in the digitalization of polymerization reaction process measurement

Strengthening industry responsiveness

Acquired Dublix Technology ApS, a Danish company with efficiency improvement technology for waste and biomass power plants

Formed a capital and business alliance with Ideation3X Pte. Ltd., a company engaged in the recycling-based waste disposal business in India

Established SynCrest Inc., a joint venture with Otsuka Chemical Co., Ltd., and commenced a full-scale entry into the contracted research, development, and manufacturing business for middle-molecule pharmaceuticals

2023 Yokogawa Sustainability Report 8

Introduction

Our Goals

Our Stories

Social

Environment

Governance

Information

Stakeholder Engagement

Yokogawa is engaging with diverse stakeholders on a wide range of themes.

Customers

Objectives and themes

Solve social issues faced by customers Establish a support system

Key Initiatives

Shareholders and investors

Disclose information in a timely and appropriate manner

Have active and continuous dialogue Feedback to management

Employees

Suppliers

Employees' engagement

Equal and fair business relationships

Human resource development and

Promote supply chain sustainability

capability development

Establish a comfortable working environment

Respect workers' rights

Local communities and society

Contribute to the sustainable development of an international society Protect the Earth's environment Contribute to local communities

Provide consulting services to identify and solve issues

Develop and provide products and services utilizing cutting-edge technologies and DX

Establish a global service structure

Related information

Financial results briefings (quarterly) and general shareholders meetings (annually) IR events including business strategy briefings

Individual meetings with investors and analysts

Conduct engagement surveys to identify the status and respond to it Leverage Yokogawa University (an in- house institution) to promote learning Establishing the occupational health and safety committees Consultation between labor and management

Implement sustainable procurement based on self-assessment questionnaires (SAQ)

Promote green procurement with less environmental burdens

Participate in international projects to help emerging and developing countries develop further

Reduce greenhouse gas and preserve water resources

Cooperate with NGOs and NPOs Engage in volunteer activities in local communities

Network (P.06) Our Stories (P.17)

"Investor Relations" on our website https://www.yokogawa.com/about/ir/

Improvement of Employee Engagement (P.42)

Human Resources Development (P.44) Safe and Comfortable Work Environment (P.45)

Supply Chain Management (P.72)

Our Stories (P.17)

Community Engagement (P.52)

Greenhouse Gas (GHG) Emissions

Reduction (P.57)

Environmental Initiatives at Business Facilities (P.61)

External Ratings Yokogawa's ESG (environment, social, governance) management has received high external ratings.

Global

See Yokogawa's website for more details on external ratings：https://www.yokogawa.com/about/ir/

Japan

2023 Yokogawa Sustainability Report 9

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Yokogawa Electric Corporation published this content on 28 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2023 09:41:13 UTC.