Our Approach to
Sustainability
Sustainability Basic Policy
The Yellow Hat Group aims to contribute to sustainability by developing a safe and secure community for people and cars, based on our principle to bring everyone involved with happiness.
〜Corporate Philosophy〜
"Bringing happiness and excitement with everyone involved,
by growing thoughtful minds."
〜Management Principle〜
- 1. Make our customers satisfied
- 2. Establish pleasant corporate culture
- 3. Develop the trust from society
Governance and Risk Management
《Role and Composition of Sustainability Promotion Committee》
The committee determines policies regarding sustainability, identifies significant issues, sets targets, and plans and proposes strategies. It also monitors the progress of each action and reports to the Board of Directors. The following process enables us to evaluate risks and opportunities while formulating countermeasures for climate change.
Governance Structure
Display of Information on responses to climate change following TCFD recommendations
(1) Strategy
(Premise for scenario analysis)
In order to identify the risks and opportunities posed by climate change, we analyzed the following two scenarios.1.5°C scenario: A world in which "Transition risks" such as tighter policies and regulations and changes in market needs become apparent as we move toward a decarbonized society.
4°C scenario: A world in which climate change measures are not fully implemented and "environmental risks" such as higher average temperatures and more severe storms become apparent.
This scenario analysis identified major risks and opportunities, calculated the financial impact, and examined countermeasures. The value chain was set up for our main business, the "Car and Motorcycle Product Sales Business".
(Summary of results of scenario analysis)
The analysis under the 1.5°C scenario showed that introducing a carbon tax would increase the cost of procuring raw materials and energy, and the taxation of our CO2 emissions (Scope 1 and 2 emissions) would significantly impact our business. On the other hand, it also found an opportunity to reduce costs by improving logistics systems to build a decarbonized society.In the 4°C scenario, the opportunity loss associated with the severity of natural disasters was identified as a risk. In contrast, the increased need for our products and sales expansion associated with rising average temperatures were found as an opportunity.
We review these key risks and opportunities regularly and define our response.
Countermeasures for risks and opportunities
-Scope 1 and 2 emissions in 2021: 24,614 tCO2
-Estimated price of the carbon tax in 2030: $10,000/tCO2 (data from IEA "World Energy Outlook 2021")
Cost increase of 320 million yen is expected in 2030 for the same level of CO2 emission in 2021 (assuming $1=130yen). However, if we achieve our target CO2 emission volume for 2030 (37.8% reduction compared to 2021), we anticipate achieving a cost reduction of 120 million yen.
1.5°C Profit and Loss Analysis
*The financial impact of "cost reduction through more efficient logistics" is the difference between when 2030 is an extension of the level and when we will succeed in implementing the countermeasures.
4°C Profit and Loss Analysis
The financial impact associated with changes in energy procurement prices has been excluded because of its low impact.
While we were able to identify the "cost of recovery from natural disasters," "lost opportunities due to natural disasters," and "special demand arising from severe snowfall" as significant risks, we have not quantified the impact of these risks due to uncertainty.
(2) Indicators and Targets for GHG Emission Reduction
The following GHG emission target has been set, and we have worked on actions for reduction.By 2030: 37.8% reduction (compared to the FY2021 level: SBT 1.5°C)
By 2050: Carbon neutral
To achieve the 2030 reduction target, we estimated BAU emissions* based on the forecast of expected store expansion.
The gap between the BAU emission and the 2030 target is defined as GHG emissions to be reduced.
We will strive towards reducing GHG emissions by expanding energy-saving activities(e.g. installing solar panels), as we have adopted LEDs in all our stores to decrease electricity consumption in 2012.
Emissions in 2021 (reference year)
Reduction Targets
Human Capital and Diversity
Our group has been working on measures based on the five fundamental policies to achieve sustainable growth while the environment surrounding the car accessory sales business is drastically changing. One of these policies is 'Make the company vibrant', which aims to make our company that can respond to the upheaval in the market under the slogan 'Bright, Energetic and Positive'. In addition, we have set the "Yellow Hat Mind" and are committed to nurturing a corporate culture that generates 'excitement' and 'happiness' among our employees.
Aligning with our corporate philosophy, management principle, and behaviour policy, we have established regulations to be respected by all employees, including executives, to raise compliance awareness.
Prevention of Harassment in the Workplace
In accordance with our corporate philosophy, "We will cultivate a compassionate heart and bring joy and inspiration to everyone involved," as well as our management philosophy and code of conduct, we have established regulations that all of our officers and employees must respect and abide by in order to raise the awareness of compliance among all employees.
We shall respect and uphold the spirit of laws, articles of incorporation, regulations, as well as act with common sense and responsibility as members of society. We shall respect the personalities and human rights of all people and shall not engage in sexual or power harassment. We shall also maintain a healthy work environment by not allowing any type of harassment to be left unnoticed.
May 1, 2020
Yellow Hat Ltd.
President and CEO Yasuo Horie
behaviour policy
- 1. Develop self-discipline
- 2. Be thoughtful
- 3. Do even small tasks well
- 4. Appreciate even small things
- 5. Embrace a challenging spirit
Compliance Consultation DeskHat Hot Line
A consultation desk has been set up for employees who become aware of violations of laws and regulations or internal rules and find it difficult to resolve the issue at their workplaces.
Harassment Consultation DeskYH Help Call
We have established a consultation desk for various types of harassment.
Lawyer Hot line
We have established a consultation desk for internal reporting when, no matter the reason, an employee may be hesitant to report to the internal contact point.
(1) Strategy
We outlined our group's policy regarding how we attain talent diversity and develop our people to build our corporate environment.(Policy for human resources development)
It is our utmost priority to provide excellent service to our in-store customers. It is also essential to acquire specific expertise and skill sets to perform vehicle repair and maintenance. Therefore, we value in developing our people to grow as a company and align with our values. Specifically, we launched a dedicated department for education and training for all employees. We have an internal qualification system (beginner, intermediate, and advanced level) and pieces of training based on the level of customer satisfaction level, product knowledge and functional skills. We also have been promoting education for managers on management and diversity. In addition, we have committed to recruiting a diverse range of people with different work histories, regardless of gender, nationality and disabilities. We also provide reemployment opportunities for retired employees and conversion options for part-time to become.(Policy for internal environmental improvement)
We aim to create a safe workplace where employees can thrive and grow in their roles by offering our employees a wide range of support systems. In particular, we provide subsidies to obtain mechanic qualifications. Furthermore, we offer bonuses to obtain "real-estate transaction specialist" qualifications for members involved in opening new stores or "professional of Japanese damage insurance" to become an agency of car insurance.To deal with various internal issues, there are multiple hotlines that employees can access for further support. They include a whistleblower hotline that helps employees and others to report malpractice, harassment, and unlawful or unethical behaviour within the workplace. There is also a hotline that directly connects with a dedicated attorney for legal advice.
(2) Indicators and Targets
As of March 31, 2023, 10.0% of the group's executive officers were female. 45.2% of managers(above the level of section management) were mid-career employees. Currently, we proactively assign female and foreign employees in the retail department with 0 female managers and 2 foreign workers. At our subsidiaries, 13 female managers and 179 foreign workers are hired. In the future, we will further promote diversity and increase the number of female and foreign employees to make the company more vibrant.
