Content Strategy Disclosures of strategic approaches to sustainability clearly articulate how the organization addresses the full range of material impacts, risks and opportunities. The strategy should link to the vision and mission of the company and support the delivery of sustainable outcomes through targeted action plans. Key recommendations Explain an overarching vision and strategic approach to sustainability that succinctly incorporates all material issues and integrates sustainability into corporate strategy. Discuss the connection between sustainability and financial performance. Describe how the company will execute the strategy via action plans and objectives. Provide relevant examples of sustainability-related activities that advance the strategy and tie to specific material issues. Methodology notes Well-developed and company-specific sustainability or corporate strategy that addresses material issues and that defines roadmaps and action plans. Case studies or discussions of key activities that explain context and describe outcomes and results. Scores are limited for companies without a materiality assessment. Yokogawa Yokogawa has established three overarching sustainability goals to guide its strategy: achieving net-zero emissions; ensuring well- being and quality of life for all; and transitioning to a circular economy. These goals align with the majority of material topics identified through its Double Materiality Assessment. The robustness and granularity of the strategy are key strengths, while the integration of topics could be more explicit. Six contribution areas, derived from Yokogawa’s materiality assessment, serve as mechanisms to achieve the three strategic goals. Collectively, these contribution areas align well with most of the company’s material issues. Individually, they act as additional pillars that link specific priority issues, indicators and targets – demonstrating the integration of corporate decision- making and sustainability objectives. This link is evident in the business activities specified in the company’s Growth for Sustainability 2028 agenda designed to support the six contribution areas. These activities include developing medium- to long-term social impact indicators, setting business activity indicators and determining sustainability transition sales objectives. At a more granular level, Yokogawa has established focus areas to support sustainability transitions across individual business segments. Yokogawa’s timeline presents a roadmap toward its ultimate goals, highlighting action points such as the agenda’s strategy and establishing measurable, timebound targets for 2030 with corresponding indicators. The company further demonstrates its commitment through outcome-driven investments, including JPY 500 million allocated to reducing energy consumption, as well as renewable energy generation and procurement. To substantiate its claims and showcase its efforts, Yokogawa provides strategic, outcome-based case studies. For example, under the circular economy pillar, it discloses a detailed initiative to “make effective use of unused biomass resources” from vegetable oil production. A good sustainability strategy is one which is grounded in materiality, integrated to the business strategy, and prioritizes transformation over incrementalism.” Stephanie de Heer, WBCSD A good sustainability strategy is one which is grounded in materiality, integrated to the business strategy, and prioritizes transformation over incrementalism.” Stephanie de Heer, WBCSD A good sustainability strategy is one which is grounded in materiality, integrated to the business strategy, and prioritizes transformation over incrementalism.” Stephanie de Heer, WBCSD A good sustainability strategy is one which is grounded in materiality, integrated to the business strategy, and prioritizes transformation over incrementalism.” Stephanie de Heer, WBCSD A good sustainability strategy is one which is grounded in materiality, integrated to the business strategy, and prioritizes transformation over incrementalism.” Stephanie de Heer, WBCSD A good sustainability strategy is one which is grounded in materiality, integrated to the business strategy, and prioritizes transformation over incrementalism.” Stephanie de Heer, WBCSD Stephanie de Heer, WBCSD