Solving issues in society is our purpose
110 years ago, founder Magokichi Yamaoka, was the first in the world to succeed in downsizing and putting a diesel engine into practical use, in an effort to reduce the arduous work of farmers. Based on the philosophy of “To Conserve Fuel Is to Serve Mankind”, Yanmar’s diesel engines were able to reduced labor thereby enriching rural areas. These values remain as a central theme in our brand statement "A SUSTAINABLE FUTURE – New Value through Technology," which we declared on our 100th anniversary. Our purpose is to solve issues in society, leading to a sustainable future.
The business areas that we should focus on are the fields of "food production" and "energy conversion" as stated in our mission statement. It is estimated that the world's population will reach approximately 9.7 billion people in 2050. But as the agricultural population decreases and the area of cultivated land shrinks, labor-saving agriculture will be needed to meet the food demand of that many populations. A more efficient and sophisticated solution is needed. Additionally, energy demand continues to increase, especially in urban areas. The risk of climate change is increasing year by year, and there are expectations for the use of ammonia, methane, hydrogen, etc., as well as a shift to electrification.
It is imperative that Yanmar play a vital role in overcoming these challenges. Promoting sustainability is extremely important in our business areas. As this does not always produce results in the short term, we will boldly take on the challenge with a mid- to long-term perspective, similar to investing in product development. By gaining experience first, we can increase our competitive advantage and quickly resolve issues faced by customers and society.
In addition, in order for sustainability to be translated into practice rather than just a slogan, it is essential to change the mindset of not only executives but also employees. To achieve this, I believe that conversation is important. With managers properly translating the company's vision and policies and communicating with their employees, we can gain empathy and understanding. Results will come naturally.
The same importance on conversation must be applied to the supply chain too. In January 2023, we established the Supply Chain Code of Conduct and requested all suppliers to cooperate with respect to social responsibilities, such as respect for human rights, occupational health and safety, and environmental protection. By establishing standards for conversations, we have created an environment in which we can clearly say no to anything that goes against Yanmar's idea of sustainability. From now on, the materials department of each operating company will take the lead in having conversations with suppliers.