Yokogawa has made it onto CDP’s Water Security A List and Supplier Engagement Leader Board. The A listing is for the company’s sustainable water management practices and disclosure of information on these activities, and the selection to the leader board is for the company’s leadership in engaging with its suppliers around the world to reduce carbon emissions and combat global warming.
The CDP is a highly-respected non-profit organisation whose annual environmental disclosure and scoring process is widely recognised as the gold standard of corporate environmental transparency. In 2019, 525+ investors with over US$96 trillion in assets and 125 major purchasers with US$3.6 trillion in procurement spending requested companies to disclose data on environmental impacts, risks and opportunities through CDP’s platform, and over 8,400 responded.
The CDP employs a detailed and independent methodology to assess and rank companies from A to D- based on the comprehensiveness of their disclosure, their awareness and management of environmental risks, and their demonstration of best practices associated with environmental leadership, such as setting ambitious and meaningful targets. Companies that do not disclose information or provide insufficient information receive an F.
For the CDP leader board, over 4,800 companies were assessed and given a Supplier Engagement Rating based on answers to selected questions about scope 3 emissions and the reduction of environmental risk in supply chains in a 2019 climate change questionnaire. Yokogawa is one of almost 160 companies on the leader board this year.
Yokogawa has formulated three goals for sustainability that it will strive to achieve by the year 2050. These call for the achievement of net-zero emissions, ensuring the well-being of all, and the establishment of a circular economy. To make the transition to a circular economy, solutions to water resource issues must be found. To guide its efforts in this area, the company has established the number of water solutions that it provides to its customers and the amount of water used at each of its sites as key performance indicators (KPIs). Recent contributions in this area include the provision of a control system for a seawater desalination project in Peru (2018) and the provision of a digital twin-based plant simulation solution to the operators of a water treatment facility in Singapore (2019).
Regarding climate change Yokogawa provides solutions to its customers and engages in emissions reduction initiatives at its sites with the goal of achieving net-zero emissions, and is using a CO2 reduction KPI to gauge the effectiveness of its efforts.
Also, in 2019 Yokogawa endorsed the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) as part of its commitment to addressing the challenges of climate change, and based on this disclosed information on its climate change risks and opportunities in the 2019 Yokogawa Sustainability Report.
Hitoshi Nara, the Yokogawa president and chief executive officer, comments as follows about these initiatives: “As called for in the Yokogawa corporate philosophy, we aim to make full use of our measurement, control, and information technologies to provide solutions that will help to resolve pressing issues such as climate change and the need for secure access to water resources. We will continue working with our customers all over the world to provide them with solutions that facilitate the use of low-carbon power sources, improve energy efficiency, and enhance water security.”
Paul Simpson, CEO of CDP: “Congratulations to the companies that achieved a position on CDP’s A List this year, for leading in environmental performance and transparency. The scale of the business risks from the climate emergency, deforestation and water insecurity are vast – as are the opportunities from addressing them – and it’s clear the private sector has a vital role to play at this critical time. The A List companies are leading the market in corporate sustainability, tackling environmental risks, and setting themselves up to thrive in tomorrow’s economy.”