Yamato Holdings

The company has set a long-term target to achieve net-zero absolute scope 1 and 2 emissions by 2050 and two short-term targets. They include reducing scope 1 and 2 emissions intensity by 10% by 2022 compared to 2019 and reducing absolute scope 1 and 2 emissions by 10% for the same period. However, the company should also set intermediate targets at gaps of no more than five years to incentivise near-term action towards longer-term goals.

Yamato Holdings is committed to using electric vehicles as a low-carbon business model, with 570 EVs already in operation in 2020 (1% of the whole fleet). It develops low-emissions vehicles in collaboration with car manufacturers and implements field tests for the next generation of pickup and delivery modes to reduce emissions. The company does not disclose the cost of these business activities, but it will benefit from including detail of its financial commitments in its low-carbon transition strategy.

Yamato Holdings and Japan Airlines jointly announced the launch of air freighter operations between Tokyo and Hokkaido, Kyushu and Okinawa in April 2024 to build a logistics network for long-distance transport. It is unclear how this initiative will influence the company’s emissions intensity. On the one hand, aircraft capacity is much greater than that of trucks. This can be an opportunity to reduce emissions intensity. On the other hand, there is no evidence that the companies are going to use low-carbon fuels for these purposes or otherwise reduce flight emissions. Depending on the number of flights, Yamato Holdings risks increasing its emissions intensity.

Yamato Holdings has set a goal to achieve net-zero absolute scope 1 and 2 emissions by 2050. It has set an interim target to reduce scope 1 and 2 emissions intensity and absolute scope 1 and 2 emissions by 10% by 2022 compared to 2019. It is unclear if the company intends to use offsets to reach its long-term goal.

The company’s low-carbon transition plan is based on increasing its low-carbon vehicle fleet, promoting trolleys and bicycles for pickups and deliveries, developing mechanisms for procurement and storage of renewable energy, and operating joint trunk transportation with other logistics companies.

The company has a plan to replace 5,000 vehicles, half of its small-sized pickup and delivery cars and vans, with EVs by 2030. In 2020, the company’s fleet included 570 EVs. The company collaborates with vehicle manufacturers with respect to emissions reduction.

Insufficient emissions data was disclosed by the company from 2015 to 2020 to provide a meaningful assessment of its historic emissions intensity trend.

Yamato Holdings has set a long-term emissions reduction target and developed a low-carbon transition plan. The company is moving in the right direction, but faster and bigger scale actions are needed. Currently, Yamato Holdings is expected to exceed its carbon budget for the period between 2021-2036.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights. While the company expects its business relationships to respect the ILO fundamental rights at work, the company can strengthen its commitment to respect the ILO fundamental rights at work in its own operations. Furthermore, it can strengthen its disclosure on its human rights due diligence process and engagement with affected stakeholders. The company has a grievance mechanism available to workers, however, no relevant disclosure was found of a grievance mechanism available to external stakeholders.

While the company discloses that it pays a living wage, it can increase disclosure on how it determines a living wage in the regions where it operates. The company discloses the gender of its workforce by employee category, however, no evidence was found of other indicators of workforce diversity by employee category. Additionally, the company can strengthen its commitment to gender equality and women’s empowerment, as well as its disclosure on its working hours and collective bargaining practices. Furthermore, no evidence in policy documents was found of a company commitment to worker health and safety.

The company discloses its global tax strategy and its policy prohibiting bribery and corruption. However, it can increase disclosure on anti-bribery and anti-corruption clauses in its contracts with business relationships. Furthermore, the company can strengthen disclosure regarding its lobbying and political engagement approach and its protection of employees’ and customers’ personal data.