Forced Labour and Child Labour Report - Yamaha Motor Canada

Forced Labour and Child Labour Report

Financial Year Ended December 31, 2024

Introduction

This report is prepared by Yamaha Motor Canada Ltd. ("Yamaha") pursuant to Canada’s new Fighting Against Forced Labour and Child Labour in Supply Chain Act (the "Act") that came into effect January 1, 2024.

This report (the "Report") outlines Yamaha’s governance processes, existing measures, and progress made in the 2024 fiscal year to prevent and mitigate the risks across the supply chain we utilize. It addresses the period from January 1, 2024, to December 31, 2024 (the "Reporting Period"). This report reflects our pledge to transparency and accountability in support of this Act.

This Report will be published annually to chronicle our ongoing journey to protect human rights and reduce the risk that forced labour or child labour is being used in Yamaha’s operations and supply chain.

Yamaha’s Structure, Businesses and Supply Chain

Yamaha was incorporated in 1973 with a head office in Toronto, Ontario.

Yamaha is a subsidiary of Yamaha Motor Co. Ltd. which is headquartered in Japan. Yamaha is responsible for coordinating the marketing and sales activities of Yamaha Motor products in Canada, which includes motorcycles, all terrain vehicles, side by sides, snowmobiles, outboard motor engines, water vehicles, sport boats, generators, e-bikes, parts and accessories.

Yamaha products are manufactured by Yamaha Motor Co. Ltd. and other entities then imported and distributed under agreements via a network of authorized dealerships throughout Canada. Yamaha employs approximately 179 people in Canada, who consist primarily of professional and administrative staff.

Yamaha strives to work with suppliers who share our commitment to social, ethical and environmental responsibility. Our suppliers provide a wide range of goods and services that support the enjoyment of our products and services.

Yamaha’s Philosophy

CREATING KANDO

Kando is a Japanese word for the simultaneous feeling of deep satisfaction and intense excitement that people experience when they encounter something of exceptional value. Yamaha strives to create Kando through Innovation, Excitement, Confidence, Emotion and Ties. These values are at the core of everything we do.

Yamaha is committed to ensuring that human rights are held to the highest standard in our supply chain and prohibits the use of Forced Labour, Human Trafficking, and unlawful Child Labour to be involved in the sourcing, manufacturing or distribution of products and the materials used to make these items.

Yamaha’s Policies and Due Diligence Processes

Yamaha is committed to prevent forced labour and child labour in its business and supply chains, reinforced by appropriate policies.

In addition to regular reviews of our Code of Ethics, we have our Supplier Code of Conduct and Human Rights Policy.

Human Rights Policy

Yamaha’s Human Rights Policy aims to promote our commitment to respect human rights globally and throughout the entire supply chain. Our Human Rights Policy aims to achieve the main objectives of "fulfilling social responsibilities globally," which is stated in our management principles, as well as the United Nations Global Compact which we endorse.

Code of Ethics

Yamaha’s Code of Ethics lay out the behaviour standards that Yamaha and Yamaha’s officers and employees should observe in daily business activities from the perspective of compliance.

Yamaha respects fundamental human rights, and does not carry out acts that abuse or deny a person’s character according to race, nationality, ideals, principles in life, physical characteristics, personality, etc.

Supplier Code of Conduct

Yamaha’s Supplier Code of Conduct sets out the measures that suppliers doing business with Yamaha must take to ensure Yamaha can continue to meet its legal obligations, including under the following legislation:

The Fighting Against Forced and Child Labour in Supply Chain Act;
The Corruption of Foreign Public Officials Act; and
Section 119 to 125 of the Canadian Criminal Code.

Suppliers are strictly prohibited from engaging in, contributing to, or benefiting from the use of forced labour or child labour in any aspect of its business operations. Suppliers must exercise particular care in employing persons under the age of 18 to ensure that such employment does not constitute child labour.

Assessing Yamaha’s Risk

Yamaha recognizes that it may be indirectly linked to a risk of forced or child labour because of its business activities, for example, among third-party suppliers of manufactured goods.

Yamaha relies on its policies and due diligence processes outlined in the Report to identify, assess, and manage the risks of forced and child labour in its business and supply chains.

Yamaha’s Action

Short-Term

During the Reporting Period, Yamaha continued to generally include requirements for compliance with applicable laws and clauses for forced labour and child labour in its standard supplier contracts used for the procurement of goods and services.

Yamaha also continued to send to all its tier one suppliers a Supplier Human Rights/Social Compliance Acknowledgement that requires such suppliers to certify that all products sold to, supplied to, and manufactured for Yamaha are produced in their entirety, free of forced labour, human trafficking, and unlawful child labour. All suppliers are expected to comply or risk termination of all business contracts in the event an issue is found and unreported.

Long-Term

Yamaha’s long term action plan is to assess all suppliers in our supply chain by conducting supplier assessments to identify emerging risks. Yamaha will be creating a risk-based model to manage forced labour and child labour in our supply chain. This will include screening, monitoring and/or site visit to our supply chain for human rights risks.

Yamaha will be developing educational materials for our suppliers and dealers about Human Rights. This is to further expand Yamaha’s engagement and commitment to prevent forced labour and child labour in its business and supply chains.

As part of Yamaha’s ongoing enhancements, we will strive to continue to identify emerging risks. Also, Yamaha intends to continue to develop and implement additional due diligence policies and processes for identifying, addressing, and prohibiting the use of forced labour and child labour in our supply chain.

Yamaha’s Remediation Measures

During the Reporting Period, we did not identify any incidents of forced labour or child labour in our supply chains or business, or any loss of income experienced by the most vulnerable families resulting from our prevention and mitigation measures against forced/child labour. We have accordingly not taken any corresponding remedial measures. If a situation of non-compliance is identified in the future, we are committed to implementing remediation measures to correct the situation and improve the enforcement of our prevention measures within our business and supply chain.

Yamaha’s Training and Awareness

In 2024, Yamaha mandated that all current and incoming Yamaha staff complete a robust e-learning course designed to assist Yamaha employees in understanding the Act and the legal framework surrounding prohibitions against forced and/or child labour.

Yamaha’s Effectiveness

As part of our governance processes, we monitor compliance with our policies on an ongoing basis. We also review any concerns raised through informal mechanisms of employee feedback. To date, no significant concerns or complaints have been identified.

Report Approval and Attestation

This Report was approved by Yamaha’s board of directors on May 23, 2025 pursuant to paragraph 11(4)(a) of the Act and has been submitted to the Minister of Public Safety and Emergency Preparedness in Canada.

In accordance with the requirements of the Act, and in particular section 11 thereof, I, in the capacity of Managing Director and President, attest that I have reviewed the information contained in this Report on behalf of the governing body of the Yamaha. Based on my knowledge, and having exercised reasonable diligence, I attest that the information in this Report is true, accurate and complete in all material respects for the purposes of the Act, for the reporting year listed above.

James Matthews
Managing Director & President
Yamaha Motor Canada Ltd.
May 23, 2025