Yokohama to launch carbon-neutral tyre in 2023 as part of wider ESG programme

During 2022 Yokohama enacted a number of Environmental, Social and Governance (ESG) activities that laid the foundation for further ESG developments in 2023, not least the news that company will introduce a carbon-neutral tyre before the year is out.

For its part, Yokohama Rubber regards ESG activities as “an important strategy that will contribute to the strengthening of its business and lead to sustainable increases in its corporate value”. According to the company, Yokohama Rubber’s environment-related initiatives are based on a three-pillar strategy focused on “achieving carbon neutrality, a circular economy, and coexistence with nature, which will support the achievement of the first two goals.”

As far as the environment is concerned, the company is targeting net zero CO2 emissions and 100 per cent use of sustainable materials by 2050.  In 2022 Yokohama Rubber undertook initiatives to make its Shinshiro-Minami Plant carbon neutral and realise the use of racing tyres made from sustainable materials, while continuing what it calls “nature-positive tree-planting activities”.

Social-related initiatives included the formulation of a human rights policy and expansion of the company’s grievance redress mechanisms based on the JaCER (Japan Center for Engagement and Remedy on Business and Human Rights) platform.

Corporate governance–related initiatives included the unwinding of cross-shareholdings and promoting governance diversity by, for example, appointing a female outside director. The company’s ESG activities were again highly evaluated, as it was named to the CDP’s Climate Change A List and received four stars in the Nikkei SDGs Management Survey.

Carbon neutral tyre to be launched

Moving forward the company plans to further enhance its ESG efforts. Specifically, in 2023, Yokohama Rubber will “continue its efforts to reduce energy consumption at its production bases in Japan and overseas”. The company will also launch new carbon-neutral tyres and continue its research and development of tyres using sustainable materials.

Yokohama Rubber also reports that it will raise its initiatives to solve environmental issues to the next level by setting new short- and medium-term goals for its biodiversity conservation activities. In addition, Yokohama Rubber reports that the company “will further strengthen its corporate governance and address social issues by accelerating work-style reforms and transitioning to a company with an Audit & Supervisory Committee.”

In addition, on 15 February Yokohama Rubber Co., Ltd., announced that as of January 2023 the company has joined the TNFD Forum, a global gathering of institutions that are aligned with the mission and principles of the Taskforce on Nature-related Financial Disclosures (TNFD) and provide support for TNFD activities.

The TNFD is an international initiative established in 2021 to develop a framework for nature-related disclosures that builds on the model developed by the Task-force on Climate-related Financial Disclosures (TCFD). According to Yokohama, “The TNFD aims to restore biodiversity by establishing a framework that encourages companies to disclose information on risks and opportunities related to the natural environment and biodiversity and by supporting a shift in global financial flows to nature-positive outcomes.”

Yokohama Rubber reports that it established its Guidelines for the Preservation of Biodiversity in 2010 and has been promoting efforts throughout its value chain to preserve biodiversity. At the raw material procurement level, Yokohama Rubber “endeavours to make natural rubber…a sustainable resource”. Toward that end, the company has been conducting surveys on the social and environmental impact of natural rubber plantations and is promoting agroforestry initiatives that promote biodiversity and raise the yields of natural rubber within natural rubber plantations. As a participant in the TNFD Forum, Yokohama Rubber will actively disclose information and further accelerate its environmental conservation initiatives.

It is also worth noting that, for the 18th year in a row, at the end of January, The Yokohama Rubber Co., Ltd. announced that it has been included in the global stock index FTSE4Good Index Series, an achievement it says “reconfirms that the company’s ESG activities and disclosure practices meet the highest global standards.” The tyre, wheel and rubber products maker has also been selected for the FTSE Blossom Japan Index for the sixth straight year.