Yanmar is a manufacturer specialised in diesel engine production, in addition to developing agricultural machinery such as tractors, tillers, rice transplanters and combine harvesters. As part of its Smart Agriculture division, Yanmar develops drones for monitoring and for pest-control purposes. The company was founded in 1912, released its first power tiller and tractor in 1937, and today sells its products globally in countries including Brazil, China, India and the US.
Yanmar operates in the agricultural inputs segment, where it ranks 49th out of 54. The company performs poorly compared to its peers, lagging behind across the governance and strategy, environment, nutrition as well as the social inclusion measurement area due to the company’s limited disclosure on key sustainability topics.
Sustainable development strategy
As part of its sustainability strategy, Yanmar discloses four sustainability pillars covering topics across the three benchmark dimensions of environment, nutrition, and social inclusion. In addition, the company discloses some targets on environment-related topics. However, the company has an opportunity to disclose its process for identifying and prioritising the topics on which it has the most impact.
Governance and accountability for sustainable development
Yanmar does not disclose the governance structure for the implementation of its sustainable development strategy or targets, such as the person, team or committee that holds ultimate responsibility for its implementation.
While Yanmar provides an overview of its stakeholder groups, it does not disclose stakeholder engagement activities, including how it selects the stakeholders, nor an overview of the topics discussed or their outcomes.
Scope 1 and 2 greenhouse gas emissions
While Yanmar has set a 2030 target to reduce its CO2 emissions by 30% against a 2005 baseline, it is unclear whether the target includes both scope 1 and 2 greenhouse gas (GHG) emissions.
Scope 3 greenhouse gas emissions
Yanmar does not disclose quantitative evidence to demonstrate that it is reducing its scope 3 GHG emissions.
Plastic use and packaging waste
While Yanmar discloses an objective on the reduction of packaging in its distribution channels, it does not have a time-bound target to reduce plastic use, nor does it disclose that it is reducing its plastic use and transitioning to sustainable forms of packaging.
Soil health and agrobiodiversity
Yanmar does not disclose that it is adopting sustainable production practices that improve soil health and increase agrobiodiversity.
While Yanmar discloses its water consumption reduction in by 11.5% against a 2015 baseline, it does not demonstrate quantitative reductions in water withdrawals across its own operations for consequent years. In its 2019 reporting, Yanmar discloses that it has achieved an 11.5% reduction in water use across its manufacturing locations in Japan, thereby meeting its target. However, the company does not report on water use in its 2020 and has not set a new target, highlighting a key opportunity for Yanmar.
Availability, accessibility and affordability of healthy foods
Yanmar does not disclose a commitment or evidence of activities to improve food security and increase the availability of healthy and nutritious foods. While the company demonstrates it enables improved yields and productivity with its products, it does not demonstrate how it contributes to an increased availability of healthy and nutritious foods. Yanmar has an opportunity to disclose commitments and activities aimed at improving the nutritional value of crops and increasing the availability of healthy and nutritious foods.
Yanmar has an employee health management policy in place, which includes the ”Action Goal, Kenko 11” program. As part of this program the company supports employees to achieve healthier eating habits and maintain a healthy weight. However, the company has an opportunity to demonstrate that it offers employees access to healthy food in the workplace.
Child and forced Labour
While Yanmar addresses child labour and forced labour in its reporting, it does not disclose a policy statement committing to prohibit these practices in its operations and supply chain.
Yanmar does not disclose that it pays its workers a living wage or requires its suppliers to do the same. Neither has it set targets to do so in the future.
Farmer and fisher productivity and resilience
Yanmar does not disclose a commitment or examples of activities to support the resilience, productivity and access to markets for farmers.
Health and safety of vulnerable groups
Yanmar does not disclose that it specifically recognises the health and safety risks to vulnerable groups, such as migrant and temporary labourers, women, and young farmers.
Core social indicators
The core social indicators are part of the social inclusion measurement area. These indicators assess societal expectations of business conduct that companies should meet if they aspire to be part of a system transformation that leaves no one behind.
While Yanmar addresses human rights in its reporting, no formal statement of policy committing to respect human rights and ILO core labour rights in its operations and supply chain was found in the public domain. Moreover, the company provides no evidence of a grievance mechanism or and human rights due diligence process. Neither does Yanmar disclose how it engages with affected and potentially affected stakeholders.
No policies or commitments related to providing and promoting decent work were found in the public domain. This includes the provision of secure, safe and healthy workplaces, where workers are fairly remunerated and have a meaningful say in decision making.
No policies or commitments related to key ethical business topics – personal data protection, tax, bribery and corruption, and lobbying and political engagement – were found in the public domain. As such, Yanmar does not demonstrate how it ensures ethical business conduct throughout its operations and in its relationships with supply chain partners.