Chief Operating Officer’s Message

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.

Challenges in the food and energy fields

In modern society, where a variety of information is spread globally, the commoditization of all products and services is accelerating. At Yanmar, it is becoming difficult to differentiate ourselves from other companies by simply manufacturing products, and we believe it is important to listen carefully to what our customers are having trouble with on the ground. We are returning to our roots in "creating customer value" and are working to create a win-win relationship between our customers and ourselves, working together to solve problems.

In relation to food, Yanmar is involved not only in the production of agricultural products, but also in the processing, distribution, and sales of agricultural products. We are working on activities to develop a "food and agriculture industry” by supporting the entire food cycle, adding to the sector’s appeal . For example, we are working to return compost made from food waste to farmland. Also, in an effort to minimize waste Yanmar purchases agricultural products from farmers that would otherwise be difficult to sell and makes use of them in our employee cafeteria.
We have also proposed a variety of smart agriculture solutions, such as SMARTASSIST and robotic/autonomous tractors. We are currently developing small agricultural machinery with an electric powertrain, and plan to launch it on the market by 2025. Small agricultural machines are sometimes used in garden greenhouses, and electrification can reduce the impact that emissions have on crops and the health hazards of farmers. Additionally, we are conducting trials of SMARTASSIST in collaboration with governments and our distributors in Asian countries.

In the energy field, we are working to achieve carbon neutrality as part of the "YANMAR GREEN CHALLENGE 2050" activities formulated two years ago. Our strength in diesel engines is our efficient engine technology based on combustion and reciprocation. The problem with achieving carbon neutrality is not the engine itself, but the fact that it burns fuels that contain carbon. Hydrogen is considered to be a promising alternative.
A hydrogen pipeline is already in operation in Germany, and we have commercialized a gas engine cogeneration system that can co-combust up to 40% hydrogen. Furthermore, in September 2023, we opened YANMAR CLEAN ENERGY SITE, a facility for trialing hydrogen power generation systems in Okayama Prefecture, Japan. We provide the public with the opportunity to see the actual systems in action, including the hydrogen fuel cell power generation system scheduled to be released in 2024, delivering optimized energy solutions to our customers.
We are also progressing with the development of electrification using batteries and motors. The challenge of electrification is to control the powertrain in a well-balanced manner, and here too we can make use of our powertrain optimization technology.

Diversity and Inclusion

As we move forward with our global strategy, it is essential to promote "diversity and inclusion" in order to develop personnel that can adapt to any location around the world, regardless of nationality, culture/religion, gender, or age. We have been working on the localization of our RHQs from an early stage, and currently many of our RHQs are headed by local personnel.
In Japan, the Human Resources Division's Diversity Promotion Group plays a central role in promoting diversity within the company, with measures such as active participation of women in the workforce and encouraging men to take childcare leave.

First spread HANASAKA spirit in the company

At Yanmar, we uphold values that recognize the potential within every individual and encourage them to take on challenges. These values are still the driving force behind our initiatives. We have named this value “HANASAKA” as a symbol of Yanmar's uniqueness and are promoting measures such as human resource development. First, we will deepen our employees' understanding of what “HANASAKA” means to them within the company by continuing to hold workshop activities around the world. In addition, we will create an environment where employees can thrive, with a system that applauds the initiatives of motivated individuals, irrespective of their years of experience or tenure with the company.

Sustainability

Consumers now have a strong tendency to choose more sustainable products, and we are living in an era where they choose companies that provide such products and services. Having sustainability in mind, we will first work on “carbon neutral,” and we want all of our employees to feel that the results will lead to solving customer issues and, by extension, social issues. Yanmar will refine various technologies and provide solutions that can contribute to society in the food and energy fields. We will continue to work diligently on sustainability in order to continue to be the first choice of our customers and society.