2023 Integrated ReportIndexWho we are
Mission, Corporate Philosophy, Vision, andBridgestone E8 Commitment……………………………………………………… 4–5
Overview of the Bridgestone Group …………………………………………… 6–7
Our History of Taking on Challenges andthe Bridgestone DNA………………………………………………………………… 8–11

Where we are going
Global CEO Commitment ………………………………………………………… 12–19
Bridgestone E8 Commitment…………………………………………………… 20–23
Value Creation Process …………………………………………………………… 24–25

How we get there
2030 Long Term Strategic Aspiration ………………………………………… 26–31
Mid Term Business Plan (2021-2023) Progress Update …………………… 32–33
Rebuilding Earning Power……………………………………………………… 34–35
Business Strategy and Progress
・Premium Tire Business……………………………………………………… 36–39
・Sustainable Global Motorsports………………………………………… 40–41
・Solutions Business …………………………………………………………… 42–48
・Evolution in Mid Term Business Plan (2024-2026)……………………… 49
・Diversified Products Business………………………………………………… 50
Sustainability Business Model………………………………………………… 52–53
・“Produce and Sell”…………………………………………………………… 54–55

2023 Integrated Report

・Tire “Use” Phase …………………………………………………………………… 56
・“Renew” Tires to Raw Material Phase ……………………………………… 57
Technology and Innovation……………………………………………………… 58–61
Talent Strategy ……………………………………………………………………… 62–63
Strategic Resources……………………………………………………………………… 64
Financial Capital Strategy …………………………………………………………… 65
Intellectual Property Strategy ………………………………………………… 66–67
Response to Global Management Risk…………………………………………… 68
Highlights of ESG Activities
・In Harmony with Nature…………………………………………………… 70–71
・Climate and Nature-related Risk Management and Responses to
TCFD and TNFD………………………………………………………………… 72–73

About the Cover・Safety, Industrial Hygiene………………………………………………… 74–75
・Human Rights and Labor Practices……………………………………… 76–78

The front cover design is a representative work of

・DE&I………………………………………………………………………………… 79–80“Bridgestone Design”, commemorating the 60th・In Harmony with Communities………………………………………81–83

anniversary of the Bridgestone Group’s motorsports

・Procurement …………………………………………………………………… 84–85

activities, its starting point as a tire manufacturer.

・Compliance, Fair Competition …………………………………………… 86–87

Speed and strength, which are key functions of・Corporate Governance ……………………………………………………88–91

motorsports tires, are expressed through the・Board of Directors and Statutory Committee Activity Report… 92–101

beauty of the “circle”. By incorporating circles and・Board of Directors and Executive Officers ……………………………… 102

circulation into its various designs and business・Stakeholder Engagement ………………………………………………103–105

models, the Group embodies its transformation

Data
Financial Data………………………………………………………………………106–107
Non–Financial Data……………………………………………………………… 108–110
Corporate and Investor Information…………………………………………… 111

2

to a sustainable solutions company.
Please see pages 40–41 for more information
on Bridgestone’s motorsports activities.

About This Report
The Bridgestone 3.0 Journey 2023 Integrated Report has

Reporting Scope

been published to further deepen dialogue withstakeholders by giving them a comprehensive

Period: January 1, 2022 to December 31, 2022

understanding of the Bridgestone Group’s approaches(Some activities from before or after the period have also been included.)and initiatives for enhancing corporate value over the
medium to long term.
Under an unchanging mission of “Serving Society
with Superior Quality”, the Bridgestone Group has set
forth a vision—“Toward 2050, Bridgestone continues toprovide social value and customer value as a sustainable
solutions company”—and is promoting a transformation

Organizational coverage: Bridgestone Corporation andits subsidiaries and affiliates around the world.
Throughout this report, “Bridgestone” or “the Company”
refers to Bridgestone Corporation, while “the BridgestoneGroup” or “the Group” refers to all Group companies.

to realize this vision, with the “Bridgestone E8 Commitment”
as the axis. To survive in these times of turbulent change

Bridgestone Corporation is the parent company of thein the business environment where change is becoming

Bridgestone Group, which includes the following

commonplace, in August 2022 the Group announced its

Strategic Business Units (SBUs).

“2030 Long Term Strategic Aspiration” as a roadmap
toward what it intends to become by 2030.
In line with this aspiration, the Group is accelerating
its transformation toward becoming a resilient “excellent”
Bridgestone that transforms change into opportunity,
unperturbed by continuous change while remaining
robust and flexible like rubber.
The Bridgestone 3.0 Journey 2023 Integrated• Bridgestone Americas (abbreviated as BSAM) including theUnited States, Canada, Latin America, the Caribbean and Liberia.
• Bridgestone China, Asia Pacific (abbreviated as BSCAP).
• Bridgestone Europe, Russia, Middle East, India and Africa(abbreviated as BSEMIA).
• Bridgestone Japan (abbreviated as BSJP) including the Japantire business, the diversified products business and the sports/
cycles business.

Report presents the Group’s journey in taking on thechallenge of transforming into a corporate group that
supports a sustainable society while continuing to growand provide value, with an emphasis on clearly conveying
its approach to co-creating value with stakeholders. In
preparing this report, the Group referenced theInternational Integrated Reporting Framework of theValue Reporting Foundation, the Guidance forCollaborative Value Creation issued by the Ministry ofWebsite and Report Information
Please refer to the following websites for additional
financial and non-financial information.
Website: Investor Relations
www.bridgestone.com/ir/index.html

Economy, Trade and Industry, as well as the Reporting
Principles and Standard Disclosures of the Global
Reporting Initiative (GRI) Standards. The Group has also
made improvements from the previous report based on
opinions obtained through dialogue with stakeholders.

Website: Sustainability
www.bridgestone.com/responsibilities/index.html

Forward-looking Statements
Forecasts based on projections and plans for the futurein this report contain unpredictable elements that may
cause fluctuations. As such, they do not constituteguarantees by the Company of the achievement of those
forecasts. Accordingly, actual business results may differ
substantially from the Company’s current assessment.

• Annual Securities ReportWebsite: IR Library
www.bridgestone.com/ir/library/securities_report/index.html• Basic Policy on Corporate Governance, Report on the Corporate
Governance Code, and Corporate Governance StructureWebsite: Corporate Governancewww.bridgestone.com/corporate/governance/index.html

Bridgestone 3.0 Journey 2023 Integrated Report3Who we are
Mission, Corporate Philosophy, and Vision

Company Code:“Serving Society with Superior Quality”
Shojiro Ishibashi

Environmental Mission Statement
To help ensure a healthy environment
for current and future generations...
We, the Bridgestone group, are committed to continually working toward a sustainable society
with integrity and in unity with our customers, partners, communities and the world around us.

Therefore, we are focused on three objectives.

In harmony
with nature

Value natural
resources

Reduce CO2
emissions

To contribute to biodiversity through To continually improve natural resource
habitat enhancement, and throughconservation through operational
environmental education and research.
improvements and product design.

The Bridgestone group's
environmental mission covers
all aspects of our business.

Operations

Products andServices

Environmental Community
Communication Activities

TEAMS

TEAMS: Total Environmental Advanced Management System
TEAMS unites the group under a progressive management system
to help ensure a healthy environment.

The Bridgestone Essence (Corporate Philosophy)

Safety Mission

Quality Mission

https://www.bridgestone.com/corporate/philosophy/

Statement

Statement

Environmental
Mission Statement

www.bridgestone.com/
responsibilities/social/safety_health/index.html

www.bridgestone.com/
responsibilities/social/consumer/
index.html

www.bridgestone.com/
responsibilities/environment/
vision/index.html

Bridgestone 3.0 Journey

VisionToward 2050, Bridgestone continues to provide social value
and customer value as a sustainable solutions company.

4

To continually reduce emissions ofGreenhouse Gases, including CO2 fromour products complete life cycle.

Who we are

Where we are going

How we get there

Data

Bridgestone E8 Commitment

Toward 2050, Bridgestone is evolving into a sustainable solutions company.
Born of our enduring Bridgestone values, this is our personal E8 Commitment
to support the realization of a sustainable society.

Energy Committed to the realization of a carbon neutral mobility society.
Ecology Committed to advancing sustainable tire technologies and solutions
that preserve the environment for future generations.
Ef f icienc y Committed to maximizing productivity through the advancement of mobility.
Extension Committed to nonstop mobility and innovation that keeps people and the world moving ahead.
Economy Committed to maximizing the economic value of mobility and business operations.
Emotion Committed to inspiring excitement and spreading joy to the world of mobility.
Ease Committed to bringing comfort and peace of mind to mobility life.
Empowerment Committed to contributing to a society that ensures accessibility and dignity for all.

Bridgestone E8 Commitment to Our Future
For the sake of the Earth, which future generations of children have entrusted in our care.
Together with you.

Bridgestone 3.0 Journey 2023 Integrated Report5Who we are

Overview of the Bridgestone Group
Business Overview
The Bridgestone Group has approximately 130 manufacturing plants and R&D facilities with premium tire, solutions, diversified
products, and exploratory businesses in more than 150 countries and regions.

Premium Tire Business“Produce and sell” tires
Bridgestone Group’s core businesses• Passenger car tires• Truck and bus tires• Specialties tires: Tires for off-the-road mining
and construction vehicles, aircraft,
agricultural machinery, and motorcycles

Solutions Business

Amplify value during the customer’s“use” of tires
Bridgestone Group’s growth businesses• Retail and service solutions• Tire-centric solutions• Mobility solutions

Diversified Products Business

Focus on areas where Bridgestone’s
core competencies can be leveraged• Hydraulic and high-performance hoses and rubber tracks• Plastic piping and seismic isolation• Air springs• Sports: Golf balls and golf clubs• Cycle: Power assisted bicycles and bicycles
and others

Exploratory Businesses

Promote commercialization basedon co-creation with a focus onareas that make a solid contribution
to sustainability• Recycle business• Guayule business• Soft-robotics businessNote: As of December 31, 2022

6

Who we are

Where we are going

How we get there

Data

Financial and Non-Financial Highlights

Locations

Zaventem, Belgium
Hokkaido, Japan

Aprilia,
Italy
Rome, Italy

Tochigi, Japan

Wuxi, China

Tokyo, Japan

Yixing, China

Yokohama, Japan
Nong Khae, Thailand

Pathum Thani,
Thailand

Columbiana,
Ohio, U.S.
Fort Stockton,
Texas, U.S.

Akron, Ohio, U.S.

Tennessee, U.S.

Acuna, Mexico

Singapore
Karawang,Indonesia
San Pedro, Brazil

Regional Head Offices
R&D Facilities

11%
China, Asia Pacific
24% Japan

Revenue (2022)

20%

4,110.1 billion JPY

Europe, Russia,
Middle East,

Revenue by
consolidated
market (2022)

India & Africa
46% The Americas

20%

Tire Production Volume(tonnage of rubber)(2022)

1.77 million tonnes

China, Asia Pacific19%
Europe, Russia,
Middle East,

27% Japan
Tire production
volume(tonnage of rubber)by geographicalsegment (2022)
32% The Americas

India & Africa

23%

Consolidated Employees (2022)

129,262 people

20% Japan

China, Asia Pacific17%

Employees
by consolidated
region (2022)*

Europe, Russia,
Middle East,

40% The Americas

India & Africa* As of December 31, 2022.

Bridgestone 3.0 Journey 2023 Integrated Report7Who we are

Our History of Taking on Challenges and the Bridgestone DNA
Ever since its founding in 1931, guided by the unchanging mission— “Serving Society with Superior Quality” —the Bridgestone Groupneeds of society and to continue supporting mobility and individuals’ lifestyles. Bridgestone’s DNA includes a “focus on quality”,
customer problems”, and championing a “challenging spirit.” Our DNA has been shaped and refined over the course of our history

Bridgestone 1.0
Foundation

1931
Our founding
In the early part of the 20th century, before Bridgestone was

Kurume City to the rest of Japan and began exports to Asia

founded, tire manufacturers in Europe and the United States

the following year after founding. The Group has sincewere thriving alongside advancements in the automotive

continued supporting motorization and mobility

industry, while Japan relied on British and U.S. technology

with safety and peace of mind in Japan and Asia, and theand capital. Founder Shojiro Ishibashi believed in the future

Asian region has become its second home market.
The Bridgestone DNA, which includes taking onof motorized transportation in Japan and took on thechallenge of producing tires domestically using Japanesedifficulties with a “challenging spirit”, “focusing on quality”,

capital and technology. After much hard work, the very firstand being “attentive and supportive of customer problems”

Bridgestone tire was produced in 1930, and on March 1,

with “respect for being on-site”, has been inherited to the1931, Bridgestone Tire Co., Ltd. was founded in Kurume City,

current Bridgestone from this period of founding.

Fukuoka Prefecture—eventually leading to the Bridgestoneof today.
The Group set its sights on expanding overseas soonafter its founding and chose Bridgestone as the company
name and trademark—the founder’s surname translated
and reversed (Ishibashi, which means “stone bridge” inEnglish) for better product image and marketability
overseas. Bridgestone began to expand its business from

Birth of Bridgestone’s first tire8

Who we are

Where we are going

How we get thereData

has been expanding and evolving its operations to meet the changing“respect for being on-site”, “being attentive and supportive ofand through the journey of taking on challenges.

Bridgestone 2.0

1968-

Second Foundation

1968–

1988–

Defining the Company Code: “Serving
Society with Superior Quality”

Taking on the challenge of a global
Bridgestone

contributes to its society and country will be foreverMerger with Firestone Tire & Rubber Company, thesecond largest U.S. tire manufacturer

profitable. Bridgestone’s Company Code—“Serving Society

Aiming to make full-scale business entry in the North

with Superior Quality”— was established in 1968, the year it

American market, Bridgestone acquired Firestone Tire &won the Deming Application Prize. The Company CodeRubber Company, the second largest U.S. tire manufacturer atstrongly reflects the Bridgestone Group’s DNA of a “focus on

the time. The acquisition cost around 2.6 billion USD (approx.

quality” and lives on today as the Company’s mission.

330 billion JPY), making this the largest overseas acquisition

Founder Shojiro Ishibashi believed that a business thatby a Japanese company at the time. This merger madeBridgestone one of the top three manufacturers in the global
tire market and launched the journey toward globalization.
Bridgestone continued to evolve into a global company
overcoming many challenges, such as the fusion of two
distinct corporate cultures.

Company Code defined (1968)

Awarded the Deming Application Prize
In the 1960s, the Group promoted the modernization of

Bridgestone acquired the Firestone Tire & Rubber Company in 1988

management and quality management activities. Corporate

1997
Participation in F1®, the pinnacle of racing

structure improvements were made Companywide underBridgestone started its motorsports activities from the firstthe “Deming Plan” initiative and in 1968 Bridgestone

Japanese Grand Prix in 1963. The Group expanded its

received the Deming Application Prize, which is awarded to

motorsports activities globally and began participating in F1®

companies demonstrating distinguished quality control, forracing in 1997, one of the world’s top races. Just one year

the first time in the tire industry.

later, in 1998, a team won the F1® championship using
Bridgestone tires. The Firestone brand (as part ofBridgestone) returned to the INDYCAR® SERIES in the UnitedStates in 1995 and Bridgestone also began participating in
MotoGP™ in 2005, the world’s top motorcycle race. The
challenge for excellence became the driving force allowing
Bridgestone to expand its business as a global company
based on premium tires.

The Deming Application Prize medal
Receiving the Deming Application
Prize (1968)

1997-2010

2002-2015

Formula 1® 1998 Round 16 Suzuka

MotoGPTM 2015 Round 18 Valencia

Bridgestone 3.0 Journey 2023 Integrated Report9Who we are | Our History of Taking on Challenges and the Bridgestone DNA

Bridgestone 3.0
Third Foundation

2000-

2020-

Start of the solutions business for
future growth toward Bridgestone 3.0

Bridgestone 3.0: Toward becoming asustainable solutions company

Bridgestone expanded into the solutions businessdomain to amplify value of its Dan-Totsu (the clear andabsolute leader) products from the “produce and sell”
phase to the customer’s “use” of tires, with a focus on“respect for being on-site” and “being attentive andsupportive of customer problems”.

Bridgestone 3.0 Journey

VisionToward 2050, Bridgestone continues toprovide social value and customer value as asustainable solutions company.

2007
Merger with Bandag, a leading tire retread*company

Bridgestone positioned 2020 as the first year of the “third

Bridgestone acquired Bandag, a U.S. company, to grow theLong Term Business Strategy, placing sustainability at the

global retread business that maximizes productivity andcore of management and business. The Group identified its

economic value for customers and makes a strong

vision of “Toward 2050, Bridgestone continues to provide

contribution to sustainability. This merger built thesocial value and customer value as a sustainable solutions

foundation for the future growth of the solutions business,company”. To speed up that transformation, on March 1,

and retreading is now being developed as a core part of the2022, in celebration of the 91st anniversary of its founding,solutions business.

Bridgestone announced the “Bridgestone E8 Commitment”* Retreading is the process of replacing the worn tread on old tires received from
customers, and then delivering tires that are ready to be used again.

foundation” or Bridgestone 3.0 and announced the Mid-(“E8”) as the axis to drive management while earning thetrust of future generations. The E8 embodies the Group’s
vision and reflects its mission, the fundamental principle of“tires carry life”, and its DNA. As a sustainable solutions
company, Bridgestone will take on the challenge oftransforming into a company that continues to growsustainably, provide value, and support the creation of2019
Merger with Webfleet Solutions (formerly
TomTom Telematics), a leading digital fleet
solutions provider in Europe
With this merger, Bridgestone started the expansion of fleet
solutions using digital technologies. The aim is to provide
new value by combining the Group’s expertise in tires withmobility data and tire data.

10

a sustainable society together with employees, society,its partners, and customers. The Group will move forwardwith this Bridgestone 3.0 Journey.

Who we are

Where we are going

How we get there

Data

2022
Announcement of the 2030 Long Term Strategic Aspiration
Bridgestone formulated the 2030 Long Term Strategic Aspiration as a roadmap to survive these unpredictable times when thebusiness environment is constantly changing and change is becoming commonplace. In line with this roadmap, Bridgestone will
accelerate its transformation into a resilient “excellent” Bridgestone that transforms change into opportunity, unperturbed bycontinuous change while remaining robust and flexible like rubber toward its 100th anniversary in 2031.

●

2030 Long Term Strategic Aspiration: Strategic Map

2030 Long Term Strategic Aspiration: Strategic Map

Mission: Serving Society with Superior Quality

Vision: Toward 2050, Bridgestone continues to provide social value and customer value as a sustainable solutions company.
Solutions for your journey
Cloud

Bridgestone E8 Commitment“Support” society/mobility systems

Solutions for social systems

c ycle)

ew

l

Towa
rd
“C
a

S

el

Share data
among partners

Unique “Real x Digital” platform(R evehiclese&Premium Tires

Core
business“Support”

ProducRetail & Service Solutions Network

Amplify
data value

Interaction
with empathy
to co-creation

trality ＆ Ci
neu
rcu
on
lar
Use
rb

”
omy
on
ec

Tire-centric Solutions
Retail & Service Solutions

Amplify trust

Amplify valueof Dan-Totsu
products“Support” vehicle operation systems

Mobility Solutions

GrowthbusinessplatformRenEnhancing value chainof Dan-Totsu products

Diversiﬁed Products/
Exploratory

Real x Digital

Trust with society /partners / customers

Based on tire data

（Win-Win-Win）

Tires and solutions “carry life”
New core competencies
Bridgestone DNA
Fundamentals

Ultimate customization

New global footprint
Focus on quality
Sustainability

New brand power

Respect for being on-site

Compliance, Human rights

DE&I

GovernanceTechnology & Innovation

New glocal & portfolio management

Being attentive and supportiveof customer problems
BCP, Risk management

Challenging spirit

Enhance talent creativity

Create new DNA

Peace of mind, Safety2023
60th anniversary of Bridgestone’s motorsports activities
In 2023, Bridgestone celebrates the 60th anniversary of its participation in motorsports. Over the years, these activities havecontributed to enhancing Bridgestone’s brand power globally and building the foundation for the premium tire business.
Taking this opportunity, the Group will return to its starting point as a tire manufacturer and reinforce sustainable motorsports
activities with sustainability at the core.

First Japan Grand Prix 1963

1963 Bridgestone 1.0

1995-

2002-2015

INDYCAR® SERIESMotoGP™ 2015
Round 18 Valencia

Bridgestone 2.0

NTT INDYCAR® SERIES

Suzuka 8 Hours

eMotorsports

2023

Bridgestone 3.0

1997-2010

F1® Grand Prix in Japan 1976

Formula 1® 1998 Round 16 Suzuka

SUPER GT

Bridgestone World Solar Challenge

Bridgestone FIA ecoRally Cup

Bridgestone 3.0 Journey 2023 Integrated Report11Wherewe are going
Global CEO Commitment

Even in times when “change is becoming commonplace”,
Bridgestone remains passionate about continuing to support
the mobility of people and objects, committed to therealization of a sustainable society.
Calm Sense of Crisis Amidst Changes in theBusiness Environment

Toward a Strong Bridgestone Capable of
Adapting to Change

Positioning 2020 as the first year of our “third foundation” orAs a result, even in 2022 which was certainly a turbulent

Bridgestone 3.0 and placing sustainability at the core, we are

year, we were able to deliver solid results. We achieved ourcontinuing our transformation to a “sustainable solutions

first revenue of over 4,000 billion Japanese yen and over 9%company” as set out in our vision. In the “Mid-Long Termin ROIC (Return on Invested Capital) which is our mostBusiness Strategy Framework” formulated the same year, we

important management KPI in the 21MBP, an approximate

announced reinforcing initiatives toward the realization of a

4% increase versus 2020 owing to our enhanced focus onsustainable society. We also indicated our direction to“rebuilding earning power”. To achieve our 21MBP ROIC

transform change to opportunity by observing the everchanging

target of over 10% and move even closer to a “strong”

business environment with a calm sense of crisis, including a

Bridgestone this year, the global management team is“once in a century” fundamental transformation in thecontinuing to drive forward together.

mobility industry represented by the accelerated shift to EVs
and concepts such as CASE1 and MaaS2, geopolitical risk, andtechnological innovation including digital transformation.
Aside from responding to the surrounding businessContinuing to Support the Mobility of People
and Objects

environment, we also decided to face our own issues without
averting our eyes—reviewing the Group’s performance from

While Bridgestone is steadily growing flexibly and agilely

2015 to 2019, analyzing factors for the decline in profit, andadapting to change however, the surrounding businessfirmly understanding management issues before developing

environment is also constantly changing. We feel that wethe framework for our business strategy. In the “Mid Termare experiencing turbulent times when the changes weBusiness Plan (2021-2023)” (21MBP) which is in its final year

assumed in the Mid-Long Term Business Strategy Framework

this year, the framework is translated into concrete plans andare occurring more complex, multiplied and at an accelerating

being executed by the global management team. The goal forpace. Especially in 2022, changes such as the emergence ofthe 21MBP is to evolve to a “strong” Bridgestone capable ofa new global order triggered by Russia’s invasion of Ukraine,

adapting to change. Sharing the same 3 management axes

fluctuations in raw material and energy costs, and the sharp“tackle past negative legacies without delay”, “focus on

inflation occurred one after the other. With business impacts

execution and delivering results for immediate issues”, andfrom the rise in geopolitical risk and experiencing a cyber“lay foundation for future growth”, we are steadily driving

incident, Bridgestone also underwent a year of unprecedented

corporate transformation as one global management team.

crisis. However, this crisis presented us an opportunity toNotes: 1. Connected, Autonomous, Shared, and Electric
2. Mobility as a Service

12

Who we are

Where we are going

How we get there

Data

Shuichi Ishibashi
Member of the Board
Global CEO and
Representative Executive Officer

Bridgestone 3.0 Journey 2023 Integrated Report13

Where we are going | Global CEO Commitment

distinguish the constant in the changing businessactivities, and without them, Bridgestone’s solutions cannot

environment—the mobility of people and objects will

be developed. In the 21MBP, we have been laying

remain regardless of how the environment changes, andfoundations for premium enhancement and evolution withso will Bridgestone’s passion to continue supporting it.

the solutions business, preparing for growth toward the

We were able to reinforce our determination in continuing

next level. For example, for passenger car replacement tires,to support the mobility of people and objects by adapting

besides continuing to expand sales and market share byto change and creating new value guided by our mission

capturing the growing demand for high rim diameter (HRD)“Serving Society with Superior Quality”. To survive thesetires, we are driving strategic price management enabled bytimes when “change is becoming commonplace”, we

proving the value of the Dan-Totsu products to customers. In

decided it was essential now to present a roadmap toward

addition, within our existing production capacity, we are

Bridgestone’s 100 anniversary in 2031. Thus the “2030 Long

making investments to replace manufacturing equipment

Term Strategic Aspiration” was announced in August 2022,

for the production of HRD tires, as well as investing toindicating how we will evolve to a resilient “excellent”

reinforce production to shift to premium also for truck andBridgestone that transforms change to opportunity,

bus tires, tires for mining vehicles, and motorcycle tires.

unperturbed by continuous change and remaining robust andGoing forward and building on these foundations, we will

flexible like rubber. Valuing and further evolving the 4 DNAs

start creating Bridgestone’s unique “new premium” that is(focus on quality, respect for being on-site, being attentive

not demand-driven. The basis will be Bridgestone’s baseand supportive of customer problems, and championing atechnology for “products” which consists of: ENLITEN which“challenging spirit”) that we have acquired throughout our

we position as our base technology for product design, andhistory of supporting people’s mobility and lifestyles from the

BCMA (Bridgestone Commonality Modularity Architecture)ground up in Japan, Asia, and around the world, the global

which is our base technology for manufacturing and R&D.

management team will drive “unwavering management”

We consider ENLITEN as the “new premium in the EV era” forwith flexibility and agility toward our 100th anniversary.

passenger car tires, and the “new premium in the circularthbusiness era” for truck and bus tires. To put it simply,
ENLITEN is a base technology which enables “ultimate

Creating New Premium: ENLITEN Which Enables
Ultimate Customization

customization” to “sharpen edge” in tire performance.
In other words, it elevates all conventional performances,and in addition largely evolves environmental performance

The most important pillar in the Long Term Strategic

leading to sustainability, as well as performance that not

Aspiration is amplifying the value of our Dan-Totsu products.

only meet the apparent needs and potential wants of

The core business that will enable Bridgestone’s evolution

specific markets and customers, but that further inspires andwill remain the premium tire business that consists ofdelivers new value which the market and customer may not“producing and selling” tires, our Dan-Totsu products.

have even imagined. As a base technology for manufacturing

Dan-Totsu products are the starting point for all of ourand R&D to support this “ultimate customization”, we are●

14

ENLITEN: Base Technology for Product DesignWho we are

Where we are going

How we get thereData

expanding BCMA. By sharing modules, tire development

reinforcing tire-centric solutions such as retread, andand the supply chain can be simplified, leading to costpromoting mobility solutions around digital fleet operation

optimization and improved agility in development andmanagement. In developing the solutions business, co-production. Fusing these two base technologies forcreation with digital partners as well as between the different“products”, we will take on the challenge of achieving bothregions and functions within the Group is necessary. We willvalue creation and gaining competitive advantage.

drive initiatives including for enhancing efficiency, such as

What is most important in gaining competitive advantage, islinkage with cloud platforms and integration of our solutions

mastering use of these base technologies. We believe theorganizations in Europe and America, which are advanced

building of product power—to convert technology toregions for mobility. We are currently assessing our solutions

function, function to tire performance benefits, and precisely

one by one, determining what items to focus on to invest

assembling such benefits together—and reinforcement of

resources based on the potential for unique value creation

product planning power to plan them is the key going

including in sustainability.

forward. In particular, among the “needed”, “wanted”, andThrough such activities, we will deeply link the premium“inspired” performances realized through ENLITEN’s “ultimate

tire business and solutions business and accelerate value

customization”, “inspired” performance is important.

amplification of our Dan-Totsu products. Furthermore, by

Whether Bridgestone can create unique “new premium” isamplifying value, we hope to also amplify trust with society,dependent on our ability to: convert our technology andour partners, and customers leading to creating new value

passion to new benefits, create new value that markets andtogether. By generating co-creation, we aim to build

customers could not have imagined, and deliver products that

Bridgestone’s mobility ecosystem supporting vehicles, vehicle

make a breakthrough in conventional ways of thinking andoperation systems, and in the future the entire society and its

inspire them. To realize this, we will not only review productmobility systems.

planning one by one on a global basis and evolve them, butalso establish a new organizational structure and enhancethe diversity of our product planning talent.

Sustainability at the Core of Management
and Business

Building Bridgestone’s Mobility Ecosystem

Regarding sustainability which we place at the core ofmanagement and business, we are working to establish

Expanding and reinforcing the solutions business which

Bridgestone’s unique Sustainability Business Model in which

amplifies the value of Dan-Totsu products is another

we link initiatives focused on the realization of carbon

important element for our Group’s growth. Bridgestone’s

neutrality and a circular economy to our business model

solutions aim to understand and solve the issues of society

across the entire value chain where we “produce and sell”,

and customers. Combining strong real and digital capabilities,“use”, and “renew” products.

we are enhancing our retail and service solutions network,

Bridgestone’s Unique Sustainability Business Model

Restore/Regenerate

Transform

Avoid

Produce and sell Premium tire business

Upstream supply chain
tree plantingo ug hth rstated areasa l s de v ao v innio

In creaseand af CO2
for
es r e mtat

CO2 reduction in mfg. fields

R&D

Procurement

Production

Sales

Tire usage

Retreadg

Tire toRubberTire to
Tire

ex
p

and

Restore/Regenerate

r
le
ab
and d
ew
iversify ren

ou
es

Ma

ti
uc

rc
es

d
pro

ter

Tire toRaw Material

CO2 reduction effect by resource circulation

Raw material recycling / External sales

Renew Recycle business

CO2 reduction effect by resource circulation

End-of-life tire collection

Ca

sin g

intenance / Rep
Ma
air

ov e
I mp rRegenerate

vi
ty
,

Vehicle Operation

Support mobility
with peace ofmind and safety

CO2 reduction in manufacturing fields

i al Recycl in●Contribution to
CO2 reduction atcustomers’ usagec o ll e cti o n

Use Solutions business

ReduceBridgestone 3.0 Journey 2023 Integrated Report15

Where we are going | Global CEO Commitment

Concerning carbon neutrality, in 2022 we reduced

been implementing activities to value our talent in line withapproximately 30% of our CO2 emissions (in Scopes 1 and 2,

our business strategy, such as simplification of thecompared to 2011) toward our target of reducing 50% by 2030

organizational structure to ensure agile decision-making andand achieving carbon neutrality by 2050. We have also

strategy execution, as well as promoting the appointment ofstarted efforts to realize Green & Smart factories which aim tofemale managers. In the Long Term Strategic Aspiration, we

make our plants smarter and more sustainable. Additionally,

have decided to further reinforce our efforts in enhancing

we are steadily advancing initiatives for Scope 3 such as

talent creativity based on the idea of reinforcing talent

reinforcing supplier engagement.

investment to increase added value and create a virtuous

As for a circular economy, we are reinforcing activities

cycle of value creation. Based on the premise of adding talent

linked with product strategies and retread to reach our target

creativity as a global management KPI from Mid Termof increasing our use of recycled and renewable materials to

Business Plan (2024-2026) (24MBP), we defined 2023 as a

40% of resources by 2030, and achieving 100% sustainable

trial year. By setting a global common basic formula, we willmaterials by 2050. In 2022, we achieved a recycled andtrack global progress while also facing issues by country or

renewable material ratio of approximately 38%. Toward a

region. In Japan in particular, we are reinforcing talentcircular economy, we are also enhancing our recycle businessdevelopment for DX, enhancing digital training programs

which “renew” tires to raw material and our guayule businessincluding for reskilling, and started the “Genba (on-site)which aims for the diversification of natural rubber sources as

100-Day Challenge Program”—a development program to

exploratory businesses, focusing on early commercialization

enhance on-site experiences. We will also continue

through co-creation.

reinforcing investment toward the improvement of welfare

Furthermore, we are newly reinforcing our approach

and working environments including at manufacturing sites.

toward nature positive, evolving our Sustainability Business

Moreover, to develop talent with potential to become

Model to be regenerative and further increasing our efforts tothe next generation global management, we established thelive in harmony with nature. We believe it is our role and“Bridgestone NEXT100” program which selects 100 candidates

responsibility as a leading company in the tire and rubber

for next generation management and reinforces theirindustry to advance sustainability initiatives across the value

development. We are also promoting initiatives to provide a

chain. Accordingly, we will tightly embed them into our

workplace where diverse talent can shine. As one suchbusiness strategy and expand our activities toward theactivity we turned our soft-robotics business, which support

realization of a sustainable society.

the lives of every individual through the power of rubber andwhich is one of our exploratory businesses, into a corporate
venture from 2023. Diverse talent with entrepreneurship

Realizing a Workplace Where Diverse Talent
Shine: Enhancing Talent Creativity

have come together, vigorously working including cocreating with partners who have the same visions, to solve
problems such as those faced at logistics sites using soft

What supports our business strategy and is the foundation for

robot hands with artificial rubber muscles leveraging

all of our corporate activities is our talent. In “tackling past

Bridgestone’s core competencies. We will carry out various

negative legacies without delay” especially in Japan, we haveinitiatives like this to create an atmosphere encouraging new●

Talent Creativity

Talentcreativity

16＝

Added value
Talent investment

Further challenge tocreate added valueWho we are

Where we are going

How we get there

Data

challenges. Through the spread of individual success and1. Reinforce sustainable global premium tire business

confidence, we aim to create a workplace where diverse

2. E
 xpand premium tire business in emerging countries

talent can shine and where the growth of the company isrealized together with the growth of individual employees.

and growing markets
3. Evolve specialties tires into a “Dan-Totsu” premiumbusiness
4. Expand tire-centric solutions business mainly in mature

Building Mid Term Business Plan (2024-2026)—Toward the Next Stagecountries
5. Establish mobility tech business in N. America
Throughout 2023 we will build the 24MBP and plan to present

Less than a year has passed since we announced our Long

it to our stakeholders on March 1, 2024 on the occasion of the

Term Strategic Aspiration in August of 2022, and yet the93rd anniversary of our founding. The global managementbusiness environment is already changing on various fronts.

team will continue developing a concrete image for new

The Bridgestone Group will however continue to ensure

value creation to continue “supporting the mobility of people

unwavering management following the set roadmap whileand objects”.

also responding to change flexibly and agilely as one global
management team. The three axes will remain unchanged:“tackle past negative legacies without delay”, “focus on
execution and delivering results for immediate issues”, and60th Anniversary of Bridgestone Motorsport—A Journey for Excellence“lay foundation for future growth”. 2023 is the final year ofour 21MBP and also a year to build foundations for future

In cultivating the passion that we have defined as our

growth in the 24MBP. Through the 21MBP and the Long Term

management approach in the 24MBP and for our growth,

Strategic Aspiration, detailing and clarification of what our

we will also value returning to our “origin” as a tireGroup needs to do have largely progressed. 24MBP will be an

manufacturer, which is our motorsports activities. Starting

important phase in evolving to the next stage.

with our participation in the first Japan Grand Prix in 1963,
Bridgestone Motorsport celebrates its 60th anniversary in
2023. For Bridgestone, motorsports represent “a challenge“PASSION for Excellence” as Our Management
Approachfor excellence”. Repeatedly taking on the challenge ofensuring safety and peace of mind as in our fundamental
principal “tires carry life” and supporting the motion of

Toward the 24MBP, we are basing ourselves on achievements

vehicles in races where drivers challenge the limit in extreme

made in the 21MBP and identifying management issues one

conditions is what developed: our passion to “support theby one to evolve on various dimensions toward the next

mobility of people and objects”, Bridgestone pride and DNA,

stage. Our management approach will shift from the “crisis”

technological capability, comprehensive operational

phase in which we focused on solving common issues

capabilities such as the production and supply of tires,

starting from COVID-19, and change gears to an approach forbrand power, and talent. Motorsports was the driving force

future growth—a “PASSION for Excellence” which embodies

in establishing the foundations for Bridgestone’s global

Bridgestone’s passion to continue supporting the mobility ofpremium tire business and will be the engine for ourpeople and objects. Regarding the building and managing ofevolution in management and business toward ourstrategy, we will shift from having a leading global strategy toaspiration. Through these 60 years, we expanded our

encounter common issues to also deep diving into individual

activities from Japan to the world, participating in andissues by region, determining one by one “what to do” andstepping on the podium for each of the Triple Crown of“what not to do” for growth toward the next stage. We will

Motorsport (the Formula One® Monaco Grand Prix,

boost the rebuilding of earning power which we focused on

Indianapolis 500® and 24 Hours of Le Mans) in the 1990s within the 21MBP to a “reinforcement” phase, as well as boost

tires combining refined technology. Currently we havestrategic growth investments to an “expansion andmoved away a little from the world’s circuits. However, withreinforcement” stage after robustly determining the regions,this 60th anniversary as our milestone, we seek to reinforce

product categories, and businesses to inject resources

sustainable global motorsports activities which pursue

ensuring consistency between global and regional strategies.

excellence even in sustainability initiatives such as theBased on these we will clearly identify which region, productrealization of carbon neutrality and a circular economy.

category, and business to reinforce and expand, and divide

Restarting our “global journey for excellence”, we also

our business stage in five for concretization.

hope to contribute to the development of automobile andmotorsport culture that is both fun and safe with peaceof mind.

Bridgestone 3.0 Journey 2023 Integrated Report17

Where we are going | Global CEO Commitment

Enjoy and Share Emotions Together—From Interaction with Empathy to Co-creation

Committed to Creating Value Together with
Employees, Society, Partners, and Customers
to Realize a Sustainable Society

Through motorsports activities, we met numerous comradesaround the world. Enjoying motorsports and sharing

The “Bridgestone E8 Commitment” announced in 2022 is ouremotions together with them enabled us to acquire

corporate commitment consisting of 8 Bridgestone-like

empathy toward our “challenge for excellence” and expand

values starting with the letter “E” that the Group will commit

our circle of ties. We are confident that the same will lead toto creating through Bridgestone-like “purpose” and“co-creation” of new value. This circle of “interaction with“process”, together with employees, society, partners, andempathy to co-creation” is essential for Bridgestone’s future

customers to realize a sustainable society. Through thisgrowth. Learning from our “origin”, we will continue thecommitment we have also gained empathy from numerous

challenge to create new value with various partners.

stakeholders, leading to various initiatives linking
interaction with empathy to co-creation. We hope to acquire
empathy for our challenges in various areas and reinforce
co-creation with many partners with sustainability at thecore. These include sustainability initiatives across our value
chain from raw material procurement to production,enhancement of the solutions business which amplifies thevalue of Dan-Totsu products, and initiatives in the digitalspace. As a new venue for value creation the Bridgestone
Innovation Park was built and started full-scale operation in
2022. In the same year, we received approximately 1,000
visitors, of which approximately 200 cases of “seeds ofco-creation” were born, and 10 joint research cases initiated.

For the sake of the Earth, which future generations ofchildren have entrusted in our care.
Together with you.

18

Who we are

Where we are going

How we get there

Data

We will also enhance opportunities for dialogue with ourstockholders and investors regarding corporate strategy inline with the Long Term Strategic Aspiration, such as the
24MBP planning process updates, to ensure transparent
information disclosure.
The Bridgestone E8 Commitment has also led to theimprovement of employee engagement and the creation of
new corporate culture. In the internal survey held online in
2022, approximately 90% of teammates responding were
aware of the commitment, 80% understood it, and 70% felt
empathy toward it. Each teammate is thinking about what
they can do to realize the 8 Es and staring to take action.
The management team is very pleased that our global
teammates, our most important stakeholders, are making
various proposals and starting to take action to realize the 8
Es in their respective workplaces and positions. With the
Bridgestone E8 Commitment as our “axis to drive
management while earning the trust of future generations”
and vector for all corporate activities, we will continue
advancing together with our 130,000 global teammates torealize and support a sustainable society.

Invitation for Co-creation
In this year’s report, we tried to present a concrete image andprogress regarding our 2030 Long Term Strategic Aspiration
which we consider our roadmap for transformation. By sharing
with you the path on which we are advancing, we hope
you will join us on our journey to realize and support asustainable society while creating new value. Even in times
when “change is becoming commonplace” we will transformchange to opportunity, unperturbed by continuous change
and remaining robust and flexible like rubber. With our
passion to continue supporting the mobility of people andobjects, Bridgestone will continue to accelerate ourtransformation to a sustainable solutions company.

Shuichi Ishibashi
Member of the Board
Global CEO and
Representative Executive Officer

Bridgestone 3.0 Journey 2023 Integrated Report19

Where we are going

Bridgestone E8 Commitment

For the sake of the Earth, which future generations of children
have entrusted in our care.
Together with you.

The “Bridgestone E8 Commitment” (“E8“) is the axis to drive

From Interaction with Empathy to Co-creation

management while earning the trust of future generations
as well as the axis of the Group’s corporate activities. The E8

Since its announcement in March 2022, the Group has

is an evolution of our global sustainability activities, which

worked to raise awareness of the E8 both inside and outside

began in earnest in the 2000s.

the Company. Global efforts have aimed to deepen

Since its foundation, the Group has been expanding

through media and external events, communication between

society and to continue supporting mobility and individuals’

management and employees at town hall-like meetings,

lifestyles in each era, guided by its mission of “Serving

internal training, and discussions and other activities at eachSociety with Superior Quality”.

workplace to connect the values of the E8 with day-to-day

In 2007, the Group established the 22 CSR Focus Points

operations. As a result, in a global survey evaluating internal

to embody its mission and to promote consistent CSR

awareness of the E8 conducted in July 2022, it was foundactivities globally. Building on this foundation, in 2017 thethat around 90% of employees were aware of the E8 andGroup established “Our Way to Serve”, identifying three

70% empathized with it.

Bridgestone-like priority areas—mobility, people, andInitiatives embodying the E8 are being undertaken

environment—to promote social contribution efforts

with outside partners. For example, the Group is taking on

tailored to local communities around each of its sites.

the challenge of space exploration by developing lunar tires

The Group is evolving its efforts to the next stage as a

as part of a team working on a lunar terrain vehicle,

corporate commitment with the E8, defined from businessdemonstrating a commitment to nonstop mobility andmanagement perspectives while embracing the three

innovation that keeps people and the world moving ahead

priority areas.

(“Extension”). The Group is also making progress with its

The E8 was established in 2022 in celebration of the 91st

commitment to contributing to a society that ensuresanniversary of Bridgestone’s founding. It aims to accelerateaccessibility and dignity for all (“Empowerment”) throughthe Group’s transformation into a sustainable solutions

initiatives such as providing internships for refugee students

company, as set out in its vision, looking ahead to 2031,

and international students from Ukraine in collaboration

Bridgestone’s 100th anniversary, and beyond. Based on thewith Japan University of Economics.

belief that the Earth has been entrusted to our care by future
generations of children, this commitment also embodies
Bridgestone’s mission, the Bridgestone Essence (corporate
philosophy), its DNA, and vision.
It also aligns with the Group’s overall corporate activities
and encapsulates the future possibilities of such activities.
The Group will create eight Bridgestone-like values startingwith the letter “E” together with employees, society,partners, and customers based on a Bridgestone-like
purpose and process. By doing this, the Group commits
to the realization of a sustainable society.

20

understanding of and promote empathy with it, including

and evolving its business to meet the changing needs ofWho we are

Where we are going

EnergyHow we get there

Data

Committed to the realization of a carbon neutral
mobility society

Toward the achievement of carbon neutrality by 2050, in addition to expanding the use ofrenewable energy at its manufacturing sites, the Group is also supporting the adoption of electricvehicles (EVs) from the ground up. The Group is expanding products equipped with ENLITEN, the“new premium in the EV era”, and expanding the EV charging network by leveraging our retail andservice solutions network. To realize a carbon neutral mobility society, the Group is accelerating
efforts throughout the value chain, covering all phases from “produce and sell” and “use” to“renewal” of tires to raw materials. These efforts include reducing CO2 emissions in the tire “use”
phase through retreads and other solutions, as well as expanding CO2 absorption and fixation byplanting trees on devastated land in the natural rubber business.

EcologyCommitted to advancing sustainable tire technologies andsolutions that preserve the environment for future generations

To realize 100% sustainable material use by 2050, the Group will boost efforts to achieve a circular
economy throughout the value chain and enhance resource productivity. A focus will be on thecreation of a regenerative business model. This includes enhancing and diversifying renewablematerials through both the natural rubber business and the guayule business that aim for thediversification of natural rubber sources; the solutions business with retreading and other services
for the tire “use” phase; and the recycle business that “renews” tires to raw materials. The Group isalso advancing initiatives for sustainable procurement, responsible water resource management, andbiodiversity conservation on a global scale in order to preserve the environment for future generations.

Efficiency

Committed to maximizing productivity through theadvancement of mobility

The Group offers solutions to enable customers to use tire safer, longer, better, and more efficiently,
ranging from new tire management and maintenance to retreading. Furthermore, by combining
tire-centric solutions leveraging tire data collected by the tire monitoring system Tirematics, etc.,with mobility solutions that collect and analyze vehicle data to propose the optimal operation tocustomers, the Group will support safe and efficient operations across the value chain and maximize
operational efficiency and productivity for our customer’s fleets.

ExtensionCommitted to nonstop mobility and innovation that keeps
people and the world moving ahead

The Group works to keep people, goods, and industry moving by expanding its retail and service
solutions network globally, which is its strength, and ensuring continuous innovation in technology
and business models. For example, in mining solutions, the Group supports day-to-day operations at
physically demanding mining sites by optimizing tire usage based on data, centered on Bridgestone
MASTERCORE tires for off-the-road mining vehicles featuring Dan-Totsu (clear and absolute leader)high durability, and through on-site maintenance services closely tailored to customer needs. The
Group is also taking on challenging projects that support the dreams of humankind and innovations
in mobility such as space exploration.

Bridgestone 3.0 Journey 2023 Integrated Report21

Where we are going | Bridgestone E8 Commitment

EconomyCommitted to maximizing the economic value of mobility andbusiness operations

The Group is promoting initiatives to optimize costs and maximize economic value for customers
and its own business throughout the value chain, with a focus on Dan-Totsu products and solutions
which amplify their value. For example, in aviation solutions, the Group leverages its Dan-Totsu
product power consisting of products that can withstand harsh conditions, such as heavy loads,
high speed, and heat/cold, with safety and peace of mind as the basic premise. Combining thiswith multiple retreads and the Group’s tire wear and durability prediction models using flight dataco-created with customers, provides greater accuracy in planned tire replacement while alsoenhancing economic value by reducing wheel and tire inventories and improving the efficiency ofaircraft maintenance.

EmotionCommitted to inspiring excitement and spreading joy to theworld of mobility

In 2023, the Group celebrates the 60th anniversary of its motorsports activities, which started with its
participation in the first Japan Grand Prix in 1963. The Group has since supported motorsports
globally from the ground up, including by participating in F1®, the pinnacle of racing from 1997.
Currently, as part of its sustainable global motorsport activities, Bridgestone supports a solar car
event—the “Bridgestone World Solar Challenge”—and an international race for electric vehicles—the“Bridgestone FIA ecoRally Cup”—as title sponsor. The Group will contribute to further developmentof car, motorcycle, and motorsport cultures that is fun and safe with peace of mind. In addition,
through its involvement in sporting goods such as bicycles and golf balls, the Group supports various
challenges by inspiring excitement.

Ease

Committed to bringing comfort and peace of mind to mobility life

Bridgestone’s fundamental principle is “tires carry life”. In addition to providing high-performanceand high-quality products such as aircraft tires and seismic isolation bearings, the Group also advances
safety education and road safety activities. In particular, the Group is supporting road safety throughits donations to the United Nations Road Safety Fund over the four-year period from 2022 to 2025 aswell as through initiatives tailored to local communities near the Group’s sites around the world.
Through such initiatives, the Group supports the mobility and lifestyles of individuals by offering
comfort and peace of mind.

Empowerment

Committed to contributing to a society that ensures
accessibility and dignity for all

The Group is also focused on initiatives to solve various social issues by being closely attuned to local
communities and people’s lives. Efforts include promoting diversity, equity, and inclusion andsupporting para-athletes. The soft-robotics business, an exploratory business, became a corporate
venture from 2023. In this initiative, diverse talent with an entrepreneurial spirit come together totake on the challenge of supporting the lives of all individuals through the power of rubber, based on
Bridgestone’s DNA of “being attentive and supportive of customer problems”.

22Who we are

Where we are going

How we get there

Data

Creation of a New Corporate Culture through the “Bridgestone E8 Commitment”
The E8 has been incorporated into the Bridgestone Group Awards, the highest level of employee recognition in the Group, andthe TQM (Total Quality Management) Conference. It is also embedded into daily business and on-site improvement activities. The
Group will further promote the creation of a new corporate culture that links the value creation of every employee, with the E8
as the axis. Comments from last year’s award winners follow.

Group Global TQM Conference: Grand Prize Winner

Tatsuya Katae
Production Department, Kitakyushu Plant

I worked on reducing the number of off-the-road tires for mining vehicles that did notmeet specifications by taking steps to control varieties in the proficiency of work that
required craftsmanship. The Bridgestone E8 Commitment has not only raised my own
awareness of sustainability, but also allowed me to share a common understandingof the goals I am working toward with my colleagues. By considering what we have
conventionally taken for granted from different perspectives, it has also become acatalyst for thinking about what kind of value we can create for society andcustomers. I feel that I have found greater fulfillment in my work by taking on new
challenges without being bound by fixed ideas. The E8 will be central as I work
toward further improvements while raising the quality of tire production andmaximizing customer value.

Group Global TQM Conference: Impression Award Winner

Sarocha Pongboon
Industrial Engineering, Production
Planning, Bridgestone Tire Manufacturing(Thailand) Co., Ltd.

We employ the principles of the Bridgestone E8 Commitment as a guiding framework
for conducting a range of improvement initiatives. These initiatives include a sustainedemphasis on enhancing product quality to ensure customer satisfaction, as well as
reducing production costs and increasing operational efficiency. The E8 clearly expresses
Bridgestone’s goal of achieving a sustainable society. The E8 has helped to develop abetter understanding of our work goals, and to foster a mindset focused on increasing
production while considering environmental and societal impacts. This has led to theinitiation of various projects aimed at improving production efficiency with thecollaboration of all relevant departments based on Genbutsu-Genba (on-site) activities.
I will utilize the principles of the E8 in my workplace to enhance my skills andknowledge, and to contribute to Bridgestone’s growth.

Bridgestone Group Award Winner

Jill Suwanski
Associate General Counsel, Data Privacy
Officer and Corporate Secretary,Compliance, Data Privacy and Global Risk,
Bridgestone Americas, Inc.

IT and information security are fundamental to supporting business operations
throughout the company. This maximizes operations and provides accessibility todata. When we were impacted by the cyber incident in 2022, we worked diligently toprotect and determine whether there was access to any company, employee orcustomer data, then communicate transparently with impacted or concerned
stakeholders to provide peace of mind during a tense situation (“Ease”). The fact that
we faced the situation with a strong sense of responsibility and passion has
reaffirmed the importance of the IT team’s daily work and has also led to“Empowerment” that increases motivation. With more mobility solutions comes moredata collection and state-of-the art technology, and I pledge to play a significant rolein the “Extension” concept, which means we keep people and the world moving
ahead by providing secure and robust IT systems.

Bridgestone 3.0 Journey 2023 Integrated Report23

Where we are going

Value Creation Process

Mission: Serving Society
Vision: 2050 Bridgestone continues to provide social value
Solutions for

Bridgestone

Input(2022 results)
Total equity

3,012.5 billion JPY

Financial capital

Approx. 140 billion JPY

Mobility Solutions

Growthbusiness

Capital expenditure
Manufactured capital

Solutions forsocial systems

Strategic resources

317 billion JPY

Tire-centric Solutions
Retail & Service Solutions

R&D expenses
Intellectual capital

112 billion JPY

Retail & Service Solutions Network

Number of employees
Human capital

129,262

Dan-Totsu Network with operation
Social and relationshipcapitalin more thanDiversiﬁed Products/
Exploratory

150 countries and regions

Amount of raw materials used

4,389 thousand tonnes
Natural capital

Premium Tires

Core
business

Tires
New core competencies
Bridgestone DNA

New global footprint

Ultimate customization

Focus on quality

Respect for being on-site

Total energy consumption

45,132 thousand GJ

Fundamentals

Sustainability

Social issues and momentum of transformation

24

Compliance, Human rights

DE＆I

GovernanceWho we are

Where we are going

How we get there

Datawith Superior Quality
and customer value as a sustainable solutions company
your journey

E8 Commitment

Output / Outcome
Long Term Strategic Aspiration
Cloud
platform“Support”
society/mobility
systems

Amplify valueof Dan-Totsu
products“Support”
vehicle operation
systems

Revenue

Amplify trust

Amplify
data value

Interaction
with empathy
to co-creation

ROIC

Towar
d“
Ca
r

omy”
con
re

c y cl e)

Unique “Real x Digital” platform

w

e&

ne

S

l

Re

Enhancingvalue chainof Dan-Totsu
products

Real x Digital

Trust with society /partners / customers（Win-Win-Win）

Based ontire data

Technology & Innovation

Being attentive and supportiveof customer problems
BCP, Risk management

Enhancing Talent Creativity

Enhance talent creativity

Milestone 2030

50% reduction

in CO2 emissions (Scope 1, 2) from 2011 level

Contribute to reducing CO2 (Scope 3)
more than 5x our emissions

and solutions “carry life”
New brand power

ROE

Mid-long term environmental targets(R e

ProducelShare data
among partners

5,000 billion JPY level
Over 800 billion JPY level
Over 15%
12% level
13% level

Over

Adjusted
operating profit
Adj. operating
profit margineutrality ＆ Circ
nn
ula
Use
bo

“Support”
vehicles2030

New glocal & portfolio management

Challenging spirit
Create new DNA

Peace of mind, Safety

40% rate of materials using recycled andrenewable resources
2050

Carbon neutrality*
100% sustainable materials* Achieving carbon neutrality for Scope 1, 2, and contributing toward carbon
neutrality in Scope 3

Changes in environment surrounding Bridgestone and risks and opportunities

Bridgestone 3.0 Journey 2023 Integrated Report25How weget there
2030 Long Term Strategic Aspiration
In August 2022, Bridgestone announced the “2030 Long Term Strategic Aspiration” as a roadmap toward the Group’s 100th
anniversary in 2031. It will guide us through an era when “change is becoming commonplace” with unpredictable changes
including the accelerated evolution of mobility, transformation of the industry, and the emergence of a new global order. It
will also help us continue supporting the mobility of people and objects with safety and peace of mind. Details of the 2030
Long Term Strategic Aspiration are presented here.

Aspiration
Become a resilient “excellent” Bridgestone that transforms change into opportunity,
unperturbed by continuous change while remaining robust and flexible like rubber

Quantitative Aspiration
The aspiration sets the following targets for 2030: Expanding scale (revenue over 5,000 billion JPY), enhancing earning
power (adjusted operating profit over 800 billion JPY), and reinforcing quality of business (adjusted operating profit
margin over 15%, ROIC of 12%, and ROE of 13%). In addition, the Group will enhance talent investment and introduce
talent creativity as a global management KPI from 2024, with 2023 as a trial year.

26

2022

2030

Revenue

4,000 B JPY level

Over 5,000 B JPY level

Expand scale

Adj. operating profit

450 B JPY level

Over 800 B JPY level

Enhance earning power

Adj. operating
profit margin

11%

over

15%

Reinforce quality

ROIC

9%

12% level

Reinforce quality

ROE

10%

13% level

Reinforce quality

Talent creativity

Trial from 2023

Introduce from Mid Term Business Plan
(2024-2026)

Who we are●

Where we are going

How we get there

Data

2030 Long Term Strategic Aspiration: Strategic Map
2030 Long Term Strategic Aspiration: Strategic Map

Mission: Serving Society with Superior Quality

Vision: Toward 2050, Bridgestone continues to provide social value and customer value as a sustainable solutions company.
Solutions for your journey

5

Solutions for social systems

vehiclese&Premium Tires

el

l

S

Core
business“Support”

ProducRetail & Service Solutions Network

Amplify
data value

Interaction
with empathy
to co-creation

2

Share data
among partners

Unique “Real x Digital” platformc ycle)

Towa
rd
“C
a

4

Amplify trust

trality ＆ Ci
neu
rcu
on
lar
Use
rb

”
omy
on
ec

Tire-centric Solutions
Retail & Service Solutions

Amplify valueof Dan-Totsu
products(R e

Mobility Solutions

Growthbusiness“Support” society/mobility systems“Support” vehicle operation systems

5

platform

ew

3

Cloud

Bridgestone E8 Commitment

RenEnhancing value chainof Dan-Totsu products

Diversiﬁed Products/
Exploratory

Real x Digital

Trust with society /partners / customers

Based on tire data

（Win-Win-Win）

Tires and solutions “carry life”

1

New core competencies
Bridgestone DNA
Fundamentals

New global footprint

Ultimate customization

Focus on quality
Sustainability

New brand power

Respect for being on-site

Compliance, Human rights

DE&I

GovernanceTechnology & Innovation

New glocal & portfolio management

Being attentive and supportiveof customer problems
BCP, Risk management

Enhance talent creativity

Challenging spirit
Create new DNA

Peace of mind, Safety

Strategic Map toward 2030
The strategy for realizing the 2030 Long Term Strategic2 	The important pillars of this strategy are amplifying the

Aspiration is summarized in the strategic map.

value of Dan-Totsu products, and amplifying trust with1 	The starting points are the fundamentals—including

society, partners, and customers.

sustainability, compliance, human rights, DE&I (diversity,3 	The business strategy is shown in the red pyramid. The

equity, and inclusion), and governance—which thecore business will remain the premium tire business,

Group has continued to carefully reinforce, positioned

which “produces and sells” tires. The Group will enhanceat the very bottom of the map. Above these strong

linkage between this and the solutions business, which

fundamentals are the Bridgestone DNA that has been

amplifies value during the customer’s “use” of tires, tocultivated through the Group’s long history: “focus on

amplify value of the Dan-Totsu products. In the same

quality”, “respect for being on-site”, “being attentive andway, the Group will create value in its diversified

supportive of customer problems”, and championing a

products business and exploratory businesses.

“challenging spirit”. Our new core competencies are

4 	Situated horizontally in between the premium tireborn from such fundamentals and DNA and serve as thebusiness and the solutions business is the retail andbasis for establishing our strategy. The five new coreservice solutions network—the enabler that allows thecompetencies consist of: “a new global footprint”

growth of the two businesses. The Group is building thiscovering production, logistics, and sales; real and digitalunique “real” and “digital” platform that tailors solutions

capabilities that realize “ultimate customization”; “newbrand power” that enables Bridgestone to enhance its
premium position and acquire new price positioning
based on global brand power and trust; “technology andinnovation”; and “new glocal and portfolio management”.
Bridgestone’s fundamental principle “tires and solutions
carry life”, which embodies the Group’s conviction tocontinue supporting the mobility of people and objects
with safety and peace of mind, is also at the heart of the
map and forms the basis of the business strategy.

to customers on-site in various places around the world.
5 	The circle in the middle represents sustainability that is

at the core of the Group’s management and business.
The Group will create value integrating sustainability
with its business model across its value chain of “produce
and sell”, “use”, and “renew” of tires. It will support
vehicles in this way, and through interaction with empathy
to co-creation support vehicle operation systems.
Furthermore, by integrating Bridgestone’s unique platform
with its global partners’ cloud platforms and amplifying
value of data, the Group will take on the challenge of
supporting society and its mobility systems in the future.
Bridgestone 3.0 Journey 2023 Integrated Report27How we get there | 2030 Long Term Strategic Aspiration

Strategic Map: Key Points toward Realizing the Aspiration
1 New Glocal and Portfolio Management

2 Business Strategy

	Toward the realization of the Long Term Strategic
Aspiration, the Group’s global management team will

1. Premium Tire Businessensure “unwavering management” while also responding
flexibly and agilely to change. The management

	In Mid Term Business Plan (2021-2023), the Group has

structure will be based on “glocal” management built up

been laying the foundation for enhancing its premium

to now, in which local strategies adapted to market andsegment and for its evolution with the solutions business.

regional characteristics based on the global strategy are

In the existing premium segment, for passenger car tires,

deployed, and which also aims for total value chain

the Group is expanding sales and market share of high rim

optimization. Based on this, the Group intends todiameter tires over 18 inches mainly in Europe and theestablish “new glocal and portfolio management” that

United States. The Group will also expand sales ofcombines market and regional characteristics with thepremium tire brands built through proving their value tobusiness portfolio as appropriate to evolve all aspects.

customers, including truck and bus tires. Furthermore, inthe 2030 Long Term Strategic Aspiration, the Group will
accelerate the creation of Bridgestone’s unique “newpremium”, which is not demand-driven. The core for thiswill be Bridgestone’s base technology for product design
called ENLITEN, which is positioned as the “new premiumin the EV era” for passenger car tires and the “newpremium in the circular business era” for truck and bus
tires. To put it simply, ENLITEN is a base technology that●

New Glocal and Portfolio Management
2020:
Corporate Transformation
Mid Term Business Plan (2021-2023)

Mid Term Business Plan (2024-2026)
Establish New Glocal &Portfolio Management‐ Flexible & Agile Management■ Glocal Management• Total optimization globally & across value chain■ Four Business Portfolio Management

1. Passenger car tire
Premium tire & solutions business2. Truck & bus tire
Premium tire & solutions business3. Specialties tire (OR AC AG MC*)
Premium tire & solutions business
4. Diversified products & Exploratory business• Deploy local strategies adapted to eachregion/market, based on global strategy

Build Foundations for a New
Glocal & Portfolio Management

Evolve to a “Strong” Bridgestone
Capable of Adapting to Change

2021

2023

2030: First step of Third Foundation
Bridgestone 3.0 Completed
2031: 100th Anniversary of Founding■ Regional & Market Characteristics

x Four Business Portfolio

2024

2020

Mid Term Business Plan (2027-2029)
Further Evolve New Glocal &Portfolio Management

2027

2029

2030

2026

Establish management structure & practices in which the global management team ensures“unwavering management” following the roadmap, while also responding to change
flexibly & agilely“Roadmap toward becoming a resilient ‘excellent’ Bridgestone”* OR: Off-the-road tires, AC: Aircraft tires, AG: Agricultural tires, MC: Motorcycle tires28

Who we are

Where we are going

How we get thereData

enables “ultimate customization”. In other words,

operation systems based on co-creation with partners

it enables customization and significant enhancement of

including in the digital space. Toward realizing its aspiration

performance that not only meets the apparent needs andin 2030, the Group is determining the business potential

potential wants of customers, but that further inspires

for each solution by comprehensively taking into accountand delivers new value that the market and customers

synergy with the premium tire business, growth potential,

may not have even imagined. At the same time, it will

and profitability, and clarifying “what to do” and “whatalso enhance environmental performance. Through thisnot to do”. The Group will strategically reinforce andultimate customization, the Group will sharpen edge inexpand the determined businesses from Mid Termtire performance and generate customer delight, toBusiness Plan (2024-2026).

realize price increase and position improvement.
		The base technology for manufacturing and R&D

1) Retail and Service Solutions Businessthat supports the “ultimate customization” is BCMA	The Group will expand its global retail and service solutions(Bridgestone Commonality Modularity Architecture).

network, the growth enabler for both the premium tire

The basic concept of BCMA is to group tire components

business and the solutions business, while also reinforcing

into three modules: the carcass, which is the skeleton of

the business itself mainly in North America.

the tire; the belt, which reinforces the tire; and the tread,which makes up the tire surface. The carcass and belt

2) Tire-centric Solutions Businessare shared across different products, which not only	With the retread business that significantly contributes tosimplifies development and the supply chain, but alsosustainability at the core, the Group will establish a

optimizes cost and improves agility in development andcircular business model that combines real and digitalmanufacturing. BCMA and ENLITEN are positioned ascapabilities to enable customers to use tires safer, longer,

Bridgestone’s base technologies for “products”. The

better, and more efficiently. The main solutions are truck

Group will also evolve its product planning power toand bus solutions that leverage retreading and the tire

amplify the value of its Dan-Totsu products, as well as

monitoring system “Tirematics”, as well as mining

evolve its global supply chain management power thatsolutions that in combination with the expansion of theensures global optimization in a flexible and agile

Dan-Totsu product Bridgestone MASTERCORE, contribute

manner while keeping local production for local sales as

to the optimization of mining operations. Aviationa basic concept.

solutions will also be reinforced as a strategic starting		

Another pillar for “new premium” is tires for off-the-point for the Group’s solutions business, realizing aroad mining vehicles. The Group will expand sales andpioneering circular business model. Aviation solutions

market share of its Dan-Totsu product Bridgestone

aims to create new value and maximize the productivity

MASTERCORE through linkage with solutions and create

and economic value of airline operations through multiple

new value. By reinforcing Dan-Totsu products as theretreading of tires and collaboration with customers andstarting point for the premium tire business in this way,system vendors based on tire and flight data sharing.

the Group will accelerate its creation of “new premium”.
3) Mobility Solutions Business	The Group will promote coordination between the digital
2. Solutions Businessfleet solutions provider Webfleet Solutions acquired in2019 and positioned as a strategic staring point, andBuild Bridgestone’s Mobility Ecosystem
	Bridgestone’s solutions business aims to understand andAzuga acquired in North America in 2021. This will not
only enhance fleet management solutions (vehicle

solve the issues of society and customers by amplifying

operation management) leveraging mobility and tire data,

the value of Dan-Totsu products. It is composed of three

but also expand the synergy between mobility solutions,businesses: 1) the retail and service solutions business;tire-centric solutions, and retail and service solutions.

2) the tire-centric solutions business; and 3) the mobility
solutions business. The Group will build Bridgestone’s
mobility ecosystem to support vehicles and vehicle

Bridgestone 3.0 Journey 2023 Integrated Report29How we get there | 2030 Long Term Strategic Aspiration

3. Diversified Products

4 Enhancement of Talent Creativity

	The Group’s talent strategy is based on the idea of	Sharply focusing on areas where its core competencies

providing opportunities for diverse talent to shine throughcan be leveraged, the Group will enhance its premium

the spread of individual success and confidence, while

segment and promote solutions in various businesses

aiming to enhance corporate value through added value

including hydraulic hoses, rubber tracks, plastic piping,creation aligned with the business strategy. To transformseismic isolation, air springs, and sports and cycle, withto a resilient “excellent” Bridgestone, enhancing the talent

the aim of supporting industries and inspiring joy.

creativity of each employee, the driving force behind thistransformation, is essential. Reinforcing talent investment
leads to increasing added value. As creating this virtuous

4. Exploratory Businesses

cycle of value creation is necessary, the Group will
introduce “talent creativity” as a global management KPI	Based on co-creation, the Group is driving efforts towardcommercialization of its exploratory businesses, focusedon areas that make a large contribution to sustainability.
The guayule business, which aims to diversify natural
rubber supply sources upstream in the supply chain, andthe recycle business, which “renews” tires to raw
materials downstream in the supply chain, both aim tocontribute to a circular economy. Meanwhile, the softrobotics business promotes the expansion of soft robots
with artificial rubber muscles. The business is also one of
the Group’s important initiatives toward enhancing talentcreativity and serves as a place to demonstrateentrepreneurship and for diverse talent to shine.

3 Establishment and Evolution of the

Sustainability Business Model
	The Group is working to establish its unique Sustainability
Business Model that links its business with efforts torealize carbon neutrality and a circular economy acrossthe value chain, from “produce and sell” and “use” to“renewal” of tires to raw materials.
		In addition, the Group will evolve its Sustainability

Business Model and transform it to a regenerative
business model to help realize a nature-positive
world where we can help stop and reverse the lossof natural ecosystems.

30

from Mid Term Business Plan (2024-2026) to measure theresults of such initiatives, with 2023 as a trial year.

Who we are

Where we are going

How we get there

Data

Progress aligned with the “2030 Long Term Strategic Aspiration”
Mid Term Business Plan (2021-2023) Progress Update and
Mid Term Business Plan (2024-2026) Planning Process Update

2015-2019
Decline in profit and industry market share

Adapt to change and become a “strong” Bridgestone to succeed

2020 Third Foundation

Bridgestone 3.0 Journey
Mid Term Business Plan

Mid Term Business Plan

(2021–2023)(2024–2026)

Return to a “strong” Bridgestone
capable of adapting to change

Focus on premium business and solutions
business to create “new premium”

Complete laying foundations
for premium enhancement
and evolution with solutions
business

Premium tire business –“Reinforce existing premium” and “create new value”
Solutions business –Build foundation to accelerate determined solutions business
Diversified products and Exploratory business –Sharply focus on areas where Bridgestone’s corecompetencies can be leveraged

Tackle past negative legacies squarely
without delay

Focus on execution and deliveringresults for immediate issues

Lay foundation for
future growth

Become a resilient “excellent” Bridgestone by 2030
Amplify trust and value through coordination of premium tire, solutions,diversified products and exploratory businesses
A talent group that can create new business value and support thebusiness portfolio
Build new corporate culture and DNA

Bridgestone 3.0 Journey 2023 Integrated Report31How we get there

Mid Term Business Plan (2021-2023) Progress Update

Three axes to drive
management

Tackle past negative legacies squarely
without delay
Focus on execution and delivering resultsfor immediate issues
Lay foundation for future growth

Mid Term Business Plan (2021-2023)
Progress Update

Summary of 2022

Closer to becoming a “strong” Bridgestone
capable of adapting to change

tried from 2023, and “talent creativity” will be introduced asa global management KPI from Mid Term Business Plan

In 2022, despite the emergence of a new global order andrapid inflation, the Group responded with flexible and agile(2024-2026).
Regarding “immediate issues”, as the Group worked tosupply management, expanded sales and market share in theaddress the turbulent business environment in 2022, we

premium segment, and implemented strategic pricewere able to instill a mindset focused on execution andmanagement, among other measures. As a result, the Groupdelivering results through the agile application of the Plan-

was able to achieve revenue of over 4,000 billion JPY for the

Do-Check-Act (PDCA) cycle. This mindset has permeated thefirst time. In addition, adjusted operating profit was 482.6

entire organization. In the premium business, the Groupbillion JPY, a 122% increase versus previous year due tofocused even more on the premium tire area, with the aim offocusing on premium areas and implementing expense

further expanding sales and increasing the market share ofstructure reforms despite some temporary negative impacts,premium products. In addition, the Group is further improving

and ROIC was 9.4% exceeding the previous year. Even during

the quality of its business despite the harsh businessturbulent change in the business environment, the Groupenvironment by reinforcing strategic price management andresponded to change flexibly and agilely, steadily moving

proving the value of its products and services to customers.

closer to the “strong” Bridgestone it envisions.

As for “lay foundation for future growth”, the Group willachieve this by creating “new premium” and determining thepotential of each solutions business

2023: Final Year of Mid Term Business Plan
(2021-2023) and Year for Building theFoundation for Growth in Mid Term Business
Plan (2024-2026) and Beyond

Please refer to the progress of each business from pages 36
to 50

For 2023 performance forecasts, the Group plans 10.5%
of ROIC which is the most important management KPI in Mid
Term Business Plan (2021-2023). This exceeds our original

In 2023, the Group aims to move even closer to a “strong”

target of 10%. The Group also plans to achieve approximately

Bridgestone capable of adapting to change as the final year

4,100 billion JPY in revenue, approximately 510 billion JPY inof Mid Term Business Plan (2021-2023). It is also an important

adjusted operating profit and an adjusted operating profit

year for building the foundation for future growth aligned

margin of 12.3%. The Group aims for an average adjustedwith the 2030 Long Term Strategic Aspiration roadmap.

operating profit margin near the 12% level for the three years

Regarding the “past negative legacies” of the threepromote the goal of “rebuilding earning power” in addition to

manufacturing footprint and business portfolio as stated inachieving ROIC of over 10%.

Mid Term Business Plan (2021-2023). The Group will continue

The Group will continue to focus on execution andto implement expense and cost structure reformation suchdelivering results and accelerate its transformation in 2023.

as reducing fixed costs with the aim of “rebuilding earning
power”. In 2022, the Group started to increase investment intalent and enhance talent creativity, which will increase
added value linked with its business strategy and create avirtuous cycle of value creation. Details will be planned and32

of Mid Term Business Plan (2021-2023) and will steadily

axes, the Group has almost completed the restructuring of its

Who we are

Currency
exchange

USD
EUR

121 JPY
134 JPY

Where we are going

109 JPY
122 JPY

107 JPY
122 JPY

How we get there

110 JPY
130 JPY

132 JPY
138 JPY

Data

103 JPY
126 JPY

123 JPY
133 JPY

Mid Term Business Plan (2021-2023)

ROIC
Adj.
Operating
Profit

14.7%

7.4%

5.1%

9.4%

9.0%

10%
level

482.6 B JPY

517.2(122% vs. prior year)[B JPY]

10.5%
510.0 B JPY

450.0

Excludingcurrency
exchange
impact(106% vs. prior year) 116% vs.

prior year

level

394.3

(190% vs. prior year)

343.1

207.4

2015

2019

2020

2021

2022
Results

Revenue [B JPY]

3,790.3

3,507.2

2,695.2

3,246.1

4,110.1

3,300.0

4,150.0

Adj. operating
profit margin

13.6%

9.8%

7.7%

12.1%

11.7%

13%

12.3%

OPEX %

25.8%

28.0%

30.3%

28.4%

27.2%

27%

27.2%

ROE

13.3%

10.0%

-0.9%

12.9%

10.9%

12%

11.4%

Profit fromcontinuing
operations [B JPY]

284.3

240.1

-19.8

307.9

305.5

290.0

340.0

Dividend pershare [JPY]

130

160

110

170

175

ー

200

JPN account.
standards

2023
2023
Mid Term Projection
Business Plan
(2021-2023)

level

level

level

level

level

International accounting standards (IFRS)

Note: Results since 2020 and 2023 projection show figures for continuing operations and exclude revenue and expenses of the discontinued operations.

Bridgestone 3.0 Journey 2023 Integrated Report33How we get there

Rebuilding Earning Power
Initiatives to Rebuild and Expand Earning Power Leveraging ROICIn Mid Term Business Plan (2021-2023), the Bridgestone Group set ROIC (return on invested capital) as a new management KPI
alongside the traditional metrics of adjusted operating profit margin and ROE (return on equity). In order to achieve the plan’starget ROIC of 10% for 2023 and rebuild earning power, efforts are being made to enhance portfolio management withincreased emphasis on capital costs, clarifying “what to do” and “what not to do” and promoting the adoption of this ROIC
concept across the value chain.

The Bridgestone Group’s Definition of ROIC
ROIC is a financial metric that measures how much profit acompany generates in relation to capital invested in its
business activities, enabling evaluation of return on
investment and capital efficiency. The basic formula usedby the Group to calculate ROIC is as follows.

Activities to Boost Awareness of ROICTo promote the adoption of this ROIC concept and facilitate
implementation of improvement activities, the Financial
Strategy department at the global headquarters oversees
global activities as the secretariat. In addition, ROIC
ambassadors implement initiatives to enhance awareness ofthe concept that are tailored to each site. This helps driveautonomous improvement activities. There are currently
around 70 ambassadors in Japan in total with one or two ineach department. In addition to materials to boost
understanding, the Group provides e-learning programs
ranging from basic to advanced levels according to the levelof understanding of participants, as well as training videos foron-site employees. Feature articles on ROIC are also publishedin the internal newsletter “Arrow” targeting individual
employees. The Group will expand these initiatives globally.
As a concrete example of ROIC improvement initiatives
at the operational level, the Tochigi Plant in Nasushiobara,
Tochigi Prefecture reviewed the use of a powdered antiadhesive agent in the process of stacking folded rubber
sheets. The mess scattered powder makes was leading topoor work efficiency and yield. By switching to a paste-likematerial, the plant was able to reduce labor hours requiredfor cleaning and improve productivity, resulting in a reduction
in manufacturing costs. Such initiatives are actively
communicated to frontline employees during morning
meetings and breaks to promote awarenessand engagement.
ROIC improvement activities like this are recognizedwith the newly established ROIC Award at the Bridgestone
Global TQM (Total Quality Management) Conference.
This encourages the sharing of best practices acrossthe organization.

34

ROIC =

Adjusted operating profit (after tax)
Working capital + Non-current assets(Invested capital)

Adjusted operating profit (after tax): Fixed tax rate of 30%
Working capital: Notes and accounts receivable and other assets + Inventories – Notes andaccounts payable and other liabilities (FY-end balance)
Non-current assets: Non-current assets excluding deferred tax assets (FY-end balance)

Moving forward, the Group will continue to promote
activities to increase awareness and understanding of ROIC
that are closely tied to each site, including level-specificeducation and the sharing of concrete best practices suited
to each function.

Jin AsanoSupervisor of the mixing
process at Tochigi Plant

We have been working on this project because webelieve that manufacturing tires using the new antiadhesive agent and technology will improve the work
environment on-site, leading to a comfortable workplacewith safety and peace of mind for all teammates. It will
also improve ROIC by optimizing manufacturing costs.
We will continue such improvement activities.

Training video for on-site employees

Poster to increase ROIC
awarenessWho we are

Where we are going

How we get there

Data

The advantages of leveraging ROIC as a management KPI are

together to improve ROIC across the value chain (end-to-end)

that it enables more robust profitability management andrather than through individual or departmental optimization.

better improvement cycles on a portfolio basis as well as
accurate evaluation of returns on a business or regional basis.
In addition, a ROIC tree makes it possible to implement
improvements at the operational level and align them withkey performance indicators, leading to swift action.

ROIC

Adjusted
operating profit(after tax)
Invested capitalturnover

Gross profit margin
Operating expense ratio
Cash conversion cycle*
Fixed asset turnover
Investment managementby item

Improvement Activities Leveraging a ROIC TreeA ROIC tree helps break down and visualize KPIs from an
operational perspective and connects Group targets with
operational-level targets. Through the ROIC tree, theoperational and corporate functions of each portfolio can work

Business Actions to Enhance ROIC
In addition to building up best practices at the operational
level, financial management activities are being implemented
at the global headquarters and Strategic Business Units(SBUs). These activities include target setting and monitoring
to drive ROIC improvement.
In each SBU, business actions are devised and run
through a PDCA cycle not only to enhance profitability but
also to optimize invested capital through budgeting andother processes with a focus on boosting ROIC. To improvethe cash conversion cycle, the Group is looking at initiatives
to increase the liquidity of accounts receivable, improvelead-times through local production for local consumption,and optimize payment periods. Additionally, efforts are being
made to improve fixed asset turnover such as efficientutilization of existing tangible fixed assets, which includes
office restructuring, comprehensive evaluation of individual
investments and merger and acquisition opportunities, andregular review of investment securities.
Bridgestone’s Global Business Support (GBS) division
which includes procurement and supply chain management(SCM), works with each SBU to execute and monitor ROIC
improvement activities for independently set business action
objectives. Meanwhile, the Financial Strategy department at
the global headquarters uses ROIC to evaluate profitability ineach portfolio on a business and regional basis and issues
warnings to SBUs as needed.

• Add new management items based on the ROIC tree
• Strengthen management at each production/sales
entity level• Manage investment of operational/strategic items separately* Cash conversion cycle = Days of inventory outstanding + Days of sales outstanding– Days of payables outstanding

10% in Mid Term Business Plan (2021-2023). Under the 2030
Long Term Strategic Aspiration, the Group aims to boost ROIC
to the 12% level amid continued efforts to reinforce thefoundations of its financial strategy based on ROIC toward
becoming a resilient “excellent” Bridgestone.

Members of the ROIC secretariat in the Financial
Strategy Department
We would like to expand ROIC in a way that makes it amore familiar concept for employees and connect it toon-site activities. We will continue to support ROIC
awareness activities and on-site improvement activities
to improve ROIC, contributing to the enhancement ofcorporate value.

Aiming to Further Boost ROICAs a result of business actions and initiatives to raise awareness,
ROIC increased to 9.4% in 2022, up from 5.1% in 2020 when
the decision was made to introduce ROIC. ROIC of 10.5% is
forecast for 2023, which would better the Group’s target of

Bridgestone 3.0 Journey 2023 Integrated Report35How we get there | Business Strategy and Progress

Premium Tire Business
Bridgestone E8 Commitment

EnergyEcology

Efficiency

Extension

EconomyIn Mid Term Business Plan (2021-2023), the Group is working to expand sales and market share of high rim diameter (HRD)
tires for passenger cars in the existing premium area. Accordingly, it is replacing manufacturing equipment and promoting
maximum utilization of existing equipment based on current production capacity. The Group is reinforcing its structure to“produce and sell” premium products, which will serve as the foundation for starting the creation of Bridgestone’s unique“new premium” at full-scale in Mid Term Business Plan (2024-2026).

Reinforcement of Existing Premium Segment

by enhancing product planning power based on the global
product strategy that it has been continuing to strengthen

Strengthening Sales of Passenger Car HRD Tires

since 2020. As an example that illustrates customer

The Group will continue to strengthen its approach torecognition of the value of Dan-Totsu products, in North

passenger car HRD tires globally as a premium segment that

America the Group achieved the top spot in 2022 for theis relatively resilient to environmental changes. The Group is

number of products that achieved the number one ranking inworking to capture recursion demand from original equipment

the Voice of Customer survey by Tire Rack®, an E-commerce(OE) tires to replacement (REP) tires, including in Northtire distributor that receives overwhelming support from

America and Europe, which are key markets for passenger

premium customers. In Europe as well, in terms of premium

car HRD tires, and in emerging markets where the use oftires such as the sport tire POTENZA, the winter tire BLIZZAK,HRD tires is continuing to expand.

and the TURANZA 6 equipped with ENLITEN, the Group isreceiving high evaluations from magazines that have large

In North America and Europe in particular, the Group islocal influence.

aiming to have HRD tires 18 inches and above account for
approximately 65% of total sales volume for OE tires andImprovement of Sales Mix with Premium Tires in
Each Region

approximately 40% of total sales volume for REP tires in 2023.
The Group will also add a new perspective, focusing on
ultra-HRD tires 20 inches and above, an area where we

Based on this Dan-Totsu product power, the Group is

expect strong growth in demand resulting fromcontinuing to strengthen sales of premium tires in eachthe accelerated shift to EVs. While taking advantage of theregion and improving the sales mix. Premium tires include

EV expansion trend in the United States, which is the Group’s

premium tire brands such as POTENZA and BLIZZAK built bylargest market, we will also reinforce efforts on a global scale.

proving value to customers. In terms of passenger car tires,in 2023 more than half the sales of global replacement tires

Improvement in Dan-Totsu Product Power andProduct Planning Powerwill be for HRD tires and premium tires in each region. The
Group will also further reinforce sales of premium brands fortruck and bus tires.

The Group is steadily improving its Dan-Totsu product power

Europe & North America
Sales portion of HRD tires 18 inch and above(including sales portion of ultra-HRD tires 20 inch and above)
18 to 19 inch

20 inch and above
OE

53%

55%

61%

REP
61%

30%
14%

REP

Approx.
65%

Index: 2019=100

33%

Approx.
25%

Market share index of
REP HRD tires 18 inch and above

25%

37%

Approx.
40%

Approx.

120

28%

24%

110

Approx.

17%
6%

7%

8%

9%

10%

104

105

100
2019

36

2020

2021

2022

2023
Plan

2019

2020

2021

2022

2023
Plan

2019

2020

2021

2022

2023
Plan

Who we are

Where we are going

How we get thereData einforcement of Structure to “Produce”
R
Premium Products

foundation. Regarding tires for off-the-road mining vehicles,

The Group will make strategic growth investments andmarket share expansion mainly for the Dan-Totsu productreinforce its structure for producing premium products. For

Bridgestone MASTERCORE. In motorcycle tires, where thepassenger car tires, investments are focused on production ofGroup has secured the top global position for OE tires in

HRD tires and products equipped with ENLITEN, not only tothe premium segment (Bridgestone estimates for the large

replace manufacturing equipment at 20 sites around thesuperbike category over 1000cc), the Group is enhancing

world, but also to increase production capacity in Brazil, Costa

its investment in production with a focus on the premium

Rica, and Japan. For truck and bus tires, where the Group isracing and sports areas. The Group currently plans to invest

establishing a circular business model, the manufacturing

a total of approximately 280 billion JPY including for 2023

structure for new tires and retreads will be strengthened, inand onwards, while making sure the investments are lean

response to sales and market share expansion in the United

through on-site productivity improvement and by fully

States where the Bridgestone Group has a strong businessleveraging existing equipment.

●

the Group is investing in production in response to sales andStrategic Growth Investments to Enhance Premium Segment
Truck & bus tires - Investment toreinforce production

Strategic growth investment to enhance premium■ Strengthen manufacturing structure for premium tires – 20 sites globally• Invest in replacing manufacturing equipment & increasing capacity for HRD tires• “New premium in EV era”: Prepare to manufacture ENLITEN products■ Increase production capacity: Brazil, Costa Rica, Japan, etc.

■ Strengthen manufacturing structure for new tires & retread
Investments
in 2021-2022

Approx. 42
B JPY

Tires for mining & construction vehicles Investment to reinforce production■ Build premium tire business based around Dan-Totsu
product “MASTERCORE”

Investments
in 2023

Approx. 96
B JPY

Total investment
to complete
capacity expansion

Approx. 276 B JPY• Shimonoseki & Kitakyushu plant: reinforce production• Saga plant: reinforce production of steel cord

New tires:• Warren plant, U.S.: Respond to sales & market share expansion in the U.S.
• Chonburi plant, Thailand: Reinforce as global supply source■ Retread: Expand production capacity in the U.S. & Japan

Motorcycle tires - Investment toreinforce production■ Focus on premium race & sports areas

Global No.1* in OE fitment for the premium category• Nasu plant: reinforce production* Bridgestone estimates for large superbike category over 1000cc

In addition to making strategic growth investments, ensure they are lean throughon-site productivity improvement & full leverage of existing equipment

New Global Footprint

New Core Competency

reinforced. The Group will reinforce manufacturing leveraging regional strengths and characteristics such as those

Regarding the new global footprint, which is a new core

between North America and Europe, and Asia and Japan.

competency in the 2030 Long Term Strategic Aspiration,

Japan will remain the core of manufacturing, supporting

the Group is continuing to build flexible and agile supply

the premium tire business where high-levels of on-site

chain management capable of adapting to change. For

and technological capabilities are required, such as forpassenger car tires and truck and bus tires, the Group is

high-difficulty specialties tires including off-the-roadbuilding a structure that can achieve global optimization

mining tires and aircraft tires.

by ensuring it has the flexibility to adapt to changes in thebusiness environment while keeping “local production for
local sales” as the basic concept. The aim is to build astructure that is also optimal for contributing to carbon
neutrality. Through investments to reinforce production
during Mid Term Business Plan (2021-2023), the Group will
aim to achieve a local production for local sales ratio of
95% for passenger car tires and 85% for truck and bus tires.
From Mid Term Business Plan (2024-2026) onwards,
investments for Green & Smart factories will also be•	Global “local production for local sales” ratio(Aspiration)

95%
Truck and bus tires: 85%
Passenger car tires:• Off-the-road mining tires and aircraft tires
Percent manufactured in Japan:

90%

Bridgestone 3.0 Journey 2023 Integrated Report37How we get there | Business Strategy and Progress

Premium Tire Business

Creation of “New Premium”
Based on the reinforcement of the existing premium segment, the Group will drive the full-scale creation of “new premium”
toward Mid Term Business Plan (2024-2026). The starting point for this is Dan-Totsu products. The Group will reinforce productplanning power to plan Dan-Totsu products on a global level. Bridgestone will build “new premium” by realizing “ultimate
customization” that involves customizing not only desired tire performance based on being attentive to and having a deep
understanding of customers and markets, but also performance providing new value that Bridgestone will uniquely create andprovide. This customization will enable sharpening competitive edge. The core will be value creation through the fusion of
ENLITEN, which is the base technology for product design, and BCMA, which is the base technology for manufacturing and R&D.
The two are positioned as Bridgestone’s base technology for “products”. Another key element will be the off-the-road mining
tire Bridgestone MASTERCORE.

Bridgestone’s Base Technology for “Products”

to ensuring space for batteries, lighter batteries, and ase Technology for Product Design to Realize
B“Ultimate Customization”“New Premium” ENLITEN

of ENLITEN-equipped products to solve issues related to

ENLITEN, positioned as a “new premium”, is a base technology
for product design that can improve the basic performanceof tires and elevate all conventional performance indicators.

reduced cost for vehicles. The Group will continue expansion
electrification from the ground up.
The percentage of ENLITEN equipment for replacement
tires is planned to be expanded from 5% in 2023 to 20% in
2024, and 70% in 2026 with the launch of a total of 50
products equipped with ENLITEN.

In addition, it significantly enhances environmental
performance leading to sustainability, as well as performancethat not only meets the apparent needs and potential wantsof specific markets and customers, but also further inspires
and delivers new value that the market and customers may
not even have imagined. ENLITEN can be used to customize
performance and sharpen the competitive edge of products.
By realizing this “ultimate customization” according tomarket and customer desires, thus generating customer
delight and proving value, the Group aims to increase prices
and improve its position. ENLITEN is positioned as the “newpremium in the EV era” for passenger car tires and the “newpremium in the circular business era” for truck and bus tires.
This value will be expanded from technology to products andthe business model.
For passenger car tires, the Group has expanded theSteven De Bock
Vice President, Consumer Business Unit, BSEMIA

number of products equipped with ENLITEN for original
equipment fitments. By proving their value to customers,
the number of fitments has expanded from 27 models(including 7 EVs) at the end of 2021 to 50 models (including
20 EVs) at the end of the first quarter in 2023. Based on thisequipped with ENLITEN, our base technology for productdesign, which aims to combine EV compatibility withmaximum safety, outstanding tire performance andexpansion, from 2023 the Group has started to drive theimproved sustainability characteristics. Creating a tire thatfull-scale expansion of ENLITEN-equipped replacement tires,

is perfectly adapted to meet the needs of drivers is ataking in recursion demand. “Turanza 6”, which is Bridgestone’sbalancing act between delivering exceptional performance,

first replacement passenger car tire with ENLITEN, andoptimal sustainability characteristics, and ensuring the“DURAVIS VAN” for light truck and bus were launched inhighest levels of safety in dry and wet conditions.

Europe in January 2023.

TURANZA 6 can be applied regardless of whether the tires

As the phrase “new premium in the EV era” suggests,

are intended for use on ICE, hybrid, or electric vehicles and

ENLITEN will not only significantly improve EV driving range

will support a carbon-neutral mobility society from theand electricity consumption and extend vehicle battery life

ground up.

through reduced tire rolling resistance, but also contribute

38

TURANZA 6 is our first replacement passenger car tireWho we are

Where we are going

How we get there

DataBase Technology for Manufacturing and R&D: BCMA

Customize

BCMA (Bridgestone Commonality Modularity Architecture) is

Customize performance flexibly &agilely per market/customer,
and differentiate

the base technology for manufacturing and R&D, supporting
the realization of “ultimate customization” using ENLITEN.

Module 3

The basic concept of BCMA is to group tire components into
three modules and share them across different products,
simplifying development and the supply chain, optimizing
cost (including cost reduction) and improving agility indevelopment and manufacturing while realizing “ultimate

Simplification

customization”. To develop BCMA and to establish the

Module 2

foundations for its execution and expansion, the Group will
clarify the roles and responsibilities of 50 new tire factories
around the world.

Improve efficiency of development
process & supply chain, realize
productivity improvement &cost reduction

Module 1

not only meet the apparent needs and potential wants of alue Creation in Premium Tire Business toward
V
Mid Term Business Plan (2024-2026)

specific markets and customers, but also convert Bridgestone’s

In order to create value and gain a competitive advantage, thetechnologies and passion into new benefits, create new value

Group will promote the fusion of price position improvementthat markets and customers could not have imagined, andbased on generating customer delight that can be realized

deliver products that breakthrough conventional ways ofthrough ENLITEN’s “ultimate customization” and cost reduction

thinking and inspire people, is critical. The Group will also

and optimization through BCMA. Agility improvement inconsider its organizational structure including enhancing the

product design and agility improvement from development

diversity of its talent to achieve this.

to production will create further value. It will also be important

In addition, toward Mid Term Business Plan (2024-

to enhance product planning power and global supply chain2026), the Group will consider measures for reinforcing new

management power to effectively leverage them.

brand power and channel power. As a premium business to

Product planning power, in particular for planningsupport the “reinforcement of earning power”, the Group will

Dan-Totsu products―the starting point for everything―is thelay the groundwork for realizing value creation as shown in

key to the creation of “new premium”. Whether the Group can

the image below.

●

Mid-Term Business Plan (2024-2026) Reinforce Earning Power: Global x Regional Strategy
Dan-Totsu product power & product planning power
Pursue “ultimate customization”

Increase priceImprove position(value creation)
Improve sales MIX■ Create new premium
Realize “ultimate customization” based on
ENLITEN, the base technology for product design

New brand power■Toward a new sustainable global premium brand
Linked with sustainable global motorsports, Bridgestone / ENLITEN

Gen2
Gen1

Fundamental
technology
ENLITEN

Channel power - Real x Digital -Power to improve sales MIX + ENLITEN■Expand and enhance retail & service solutions network,

reinforce family channel⇒ Growth enabler for the premium tire & solutions businesses■ Premium tires: increase, Commodity tires: reduce

UP
DOWN

Existing
premium

PSR HRD tire   Ultra- HRD tire
Premium tires in each region■Flexible & agile supply management focused on premium⇒ Supply the right products in the right quantity at the right timing
to the right place■ TB retread: increase

Dan-Totsu manufacturing and R&D power - Real x Digital -Global supply chain management power• Reinforce Japan’s manufacturing leadership• Clarify roles and responsibilities of 50 new tire plants globally■ BCMA*, base technology for manufacturing and R&D,
in development to manufacturing, and across the value chain
Reduce cost

Global supply chain management power“New premium”
ENLITEN“Achieve both cost reduction & customization” throughsimplification & differentiation

Reduce■ Shift to Green & Smart factories
environmental impact• Reduce environmental impact through shift to “green”• Improve productivity though shift to “smart”■“Local production for local sales” + ensuring flexibility for global

optimization“Local production
for local sales” ratio

95%（Passenger car tires) 85% (Truck & bus tires)■Lean operations (optimization of inventory, etc.)

Global procurement power
Co-creation with sustainability partners(from procurement to production, etc.)＊ BCMA：Bridgestone Commonality Modularity Architecture

Bridgestone 3.0 Journey 2023 Integrated Report39How we get there | Business Strategy and Progress

Building New Brand Power: Promoting
Sustainable Global Motorsports
New Core Competency

60th Anniversary of Bridgestone Motorsport—Journey for Excellence
Bridgestone E8 Commitment

EnergyEcology

EmotionBridgestone celebrates the 60th anniversary of its motorsports activities in 2023. For the Group, motorsports is its starting
point as a tire manufacturer and represent a “challenge for excellence”. On this anniversary year, the Group will return to its
starting point and restart its global journey for excellence. Placing sustainability at the core, the Group will reinforce activities
to achieve sustainable global motorsports. Furthermore, it will evolve the global brand power it has built over 60 years of
motorsports activities to create a new brand power, striving to build a sustainable global premium brand.

foundation of its business today. Proving performance he Journey and Challenges of Bridgestone’sT
Motorsports Activities

through racing enabled Bridgestone to be recognized as a

For over a century since its beginning at the end of the 19

global premium brand, gaining the trust of customers andcentury, motorsports have helped the development of the

becoming the driving force for the Group’s current global

automobile and contributed to the evolution of mobility,business based on premium tires. Additionally, the challenge

pushing cars to their limits and demanding maximum

for excellence has contributed to talent development in

performance and durability in extreme racing conditions. For

diverse business domains within the Group, from engineers

the Bridgestone Group also, motorsports have always been

to business personnel. The technology and brand powera “challenge for excellence”. Repeatedly taking on therefined in the field through these challenges havechallenge of ensuring safety and peace of mind as stated incontributed to the establishment of the Group’s premium

the Group’s fundamental principle of “tires carry life” andproduct brands such as POTENZA, a sports tire brand, andsupporting the motion of vehicles in races where both cars

BATTLAX, a high performance motorcycle tire brand, driving

and drivers challenge the limit in extreme conditions is what

the expansion of the premium tire business of today.

thmade Bridgestone what it is today.
The Group first participated in Japanese motorsports

Toward Sustainable Global Motorsports

with the first Japan Grand Prix in 1963, and then began

The starting point in Bridgestone 3.0, where the Group is

expanding its activities from Japan to the world taking part inaccelerating its transformation to a sustainable solutions

a variety of motorsports activities. Bridgestone returned tocompany as set out in its vision, is motorsports and its

the INDYCAR® SERIES in 1995 and also started participating inchallenge for excellence. The Group is revisiting its starting

F1® from 1997 and MotoGP™ from 2002, supporting global

point as a tire manufacturer and restarting its journey

motorsports from the ground up at the pinnacle of the world

for excellence.

stage. Currently the Group has moved away a little fromThe Group will continue to support the development of

global circuits, but in the 1990s Bridgestone participated in

motorsports culture and take on the challenge of evolving

and stood on the podium in each of the Triple Crown of

its activities into sustainable global motorsports activities

Motorsport (the world’s most prestigious motor races): thecombining real (physical) and digital capabilities.

F1® Monaco Grand Prix, the Indianapolis 500®, and the 24
Hours of Le Mans.

By promoting sustainable global motorsports, theGroup will further reinforce management, and also enhancesustainability, which is placed at the core of management

 hat We Obtained through Our Challenge forW
Excellence40

and business, Bridgestone’s pride and passion, and the four
elements of Bridgestone’s DNA—“focus on quality”, “respect

The experience gained through motorsports not only

for being on-site”, “being attentive and supportive offostered the Group’s passion as a tire manufacturer, but also

customer problems”, and championing a “challenging spirit”.

elevated its technology and development capabilities forMotorsports activities also enhance agility, which is required

tires used in harsh environments. It also refined operationof current and future business management in order tounder extreme conditions such as the supply of tires to races

respond quickly to change. The Group will leverage thethat travel around the world in short periods of time. It can

above activities as a starting point to realize agile andbe said that motorsports was the grounds where the Groupsustainable management. Especially for sustainability,

refined comprehensive capabilities that serve as thethe Group will refine its comprehensive capabilities acquiredWho we are

Where we are going

Return to the INDYCAR® SERIESHow we get there

F1®

so far as a tire manufacturer, and by pursuing “excellence”

Data

MotoGP™ (2015 Round 18 Valencia)

The Group will continue to broadly and steadily

continue to support sustainable motorsports from the

support various Japanese and overseas motorsports,

ground up.

ranging from four-wheels and motorcycle races to digital

As one such effort, the Group is driving developmentof tires containing a high ratio of recycled and renewable

racing, and from top-level professional race series tograssroots amateur races.

resources such as race tires using natural rubber extracted
from guayule shrubs, which can be grown in arid regions.
In 2022, tires using guayule were supplied to the NTT
INDYCAR® SERIES and proved their performance.
The Group’s sustainability initiatives have beenrecognized and awarded the highest rank ThreeStar Environmental Accreditation by the FIA (Fédération
Internationale de l’Automobile).

Bridgestone World Solar Challenge

Support for eMotorsports

Race tires made with natural rubber
derived from guayule

Motorsports Activity Plan
Going forward, the Group’s motorsports activities will be“ Co-Creation” from Inspiring Excitement andSpreading Joy to the World of Mobility

developed around two pillars: sustainability and the

The Group’s commitment and passion to continue providing

development of motorsports culture. In terms of sustainable

driving excitement in the coming 10 to 20 years, and to

global motorsports activities, the Group supports thecontinue supporting motorsports culture development is

Bridgestone World Solar Challenge, a solar car event that

represented in the Bridgestone E8 Commitment as “Emotion:

Bridgestone will serve as title sponsor until 2031. The Group

Committed to inspiring excitement and spreading joy to thehas also broadened its scope by becoming an official partner

world of mobility”. The Group hopes that enjoying motorsportsof the Bridgestone FIA ecoRally Cup, a new internationalwith numerous comrades, sharing emotions, and acquiring

competition for EVs promoted by the FIA, to further support

empathy toward its challenges will lead to co-creation for

the realization of a carbon neutral mobility society.

the future to realize a sustainable society. Together with its

Toward the development of motorsports culture, theemployees, society, partners, and customers, the Group will

Group also supports eMotorsports, promoting the appeal

accelerate its journey for excellence by turning the engine ofand excitement of motorsports and further expanding thesustainable motorsports.

motorsports fanbase.

Bridgestone 3.0 Journey 2023 Integrated Report41How we get there | Business Strategy and Progress

Solutions Business
Bridgestone E8 Commitment

EnergyEcology

Efficiency

Extension

EconomyThe solutions business aims to be attentive and supportive of customer problems to solve them.
Value Creation through Bridgestone’s Mobility
Ecosystem

amplifying trust will lead to further co-creation andultimately establish Bridgestone’s mobility ecosystem.

Bridgestone’s solutions business aims to be attentive andNew Organization: Bridgestone Mobility Solutions

supportive of social and customer issues and solve them. By
combining Bridgestone’s “real” capabilities developed

To achieve growth in the solutions business, the Groupon-site with “digital” capabilities, the Group will amplify thestarted with a focus on North America and Europe where thevalue of Dan-Totsu products and create social value andmobility markets are mature. The Group integrated solutions

customer value.

organizations in North America and Europe and established

The Group will reinforce both tire-centric solutions andBridgestone Mobility Solutions (BMS), in order to maximize

mobility solutions to amplify the value of Dan-Totsu products

Bridgestone WEST synergy between North America andin the tire “use” phase by enhancing synergy with theEurope. The new organization will oversee solutions

premium tire business. Tire-centric solutions provide services

businesses in North America and Europe (excluding the retailsuch as making proposals to customers regarding better use

tire business) and will account for approximately 25% of totalof tires based on tire wear and durability predictions, which isglobal solutions revenue.

achieved by collecting tire data from vehicles and then

The Group created the structure needed to facilitate

leveraging digital capabilities and our knowledge of tires toagile business execution under the Joint Global COO, whoanalyze them. Mobility solutions provide fleet management

oversees business in North America and Europe. This willleveraging mobility data.

facilitate operational integration and efficiency as well as

In addition to supporting vehicles, the Group will takestrengthen the Group’s customer-focused approach. In

on the challenge of supporting vehicle operation systems,

addition to determining the potential for each solution, thesociety and mobility systems to generate both social value

Group will scale up operations in North America whileand customer value through co-creation with society,positioning Europe as its strategic starting point.

partners, and customers. Our Dan-Totsu products andBridgestone’s Solutions Business
1 Retail and Service Solutions Business●

2 Tire-centric Solutions Business

Bridgestone’s Mobility Ecosystem
Reducing CO2 through tires
for EVs and fleet operation optimization

EnergyBridgestone E8 Commitment

Ecology

Maximizing resource productivity
by maximizing retreading cycle

Mobility Data

Tire pressure,temperature databy tire monitoring

Vehicle data, vehicle
operation data, othermobility related data

Optimizing fleet operations

Proposing optimal tire usage
Contributing non-stop mobility

Co-creationsociety/mobility systems

Engineering Chain

More accurate tire wear and durability
prediction that optimizes customer operations

Preventing sudden trouble and traffic accidents
Supporting safe operations with peace of mind

“Support” vehicle operation systems/

Customer-oriented /Gemba - on-site“Real” information

DATABASE / ALGORITHM

EconomyDan-Tostu Solutions

DigitalUnique analysis
algorithm powered by
big data

Ease

Extension

Data collection from mobility system
Tire Data

Maximizing economic value across operations(Tire inventory, management of vehicle and maintenance, etc.)

Efficiency

42

3 Mobility Solutions Business

Dan-Totsu products

Dan-Totsu network

Solution
Operation
Center
Dan-Totsu service

Understanding of society/customerʼs business issues, Solutions planning capability, Visualization of concrete effects

Optimal retread

RealWho we are

1

Where we are going

Retail and Service Solutions Business

How we get there

Data

Collaboration with Cloud Platforms

The Group will expand retail and service solutions as a

Furthermore, as an enabler to amplify the value of data andbusiness while also enhancing functions as a retail andgain a new competitive advantage, the Group announced

service solutions network―customer touchpoints providing

collaboration with Microsoft and Amazon in 2022. Linking the

Dan-Totsu products and services tailored to customer needs.

Group’s worldwide retail and service solutions network withThe Group will establish its unique platform combining

cloud platforms, the Group will further evolve Bridgestone’s
unique “real and digital” platform.

real and digital capabilities, based on its service solutions

Collaboration with Microsoft is centered on tire-centric

network of approximately 18,400 sites for passenger cars,
7,100 sites for trucks and buses, and 130 sites for mining

solutions. For example, the Group uses Microsoft’s cloudvehicles.

platform to monitor the status of customers’ tire usage indetail in real time. By storing higher quality and more
extensive tire data and by analyzing them using proprietaryalgorithms, we aim to achieve accurate tire wear anddurability predictions and propose safer and more efficienttire maintenance to customers, ultimately leading to further
retread opportunities.

●

Bridgestoneʼs Unique “Real x Digital” Retail & Service Solutions Network
Start collaboration globally from 2022

Collaboration with Amazon and Microsoft
Cloud Platform (Robust security)

Amplify data value

Solutions business(Increase data quantity,enhance quality)

Retail & service solutions business, tire-centric solutions business, mobility solutions businessAmazonMicrosoft

AmazonShare data
among partners

Premium tire business
Share data
(Based on tire data)

Retail & service solutions network
Company owned / franchise network in global
For passenger car, truck/bus, mining/construction vehicle, aircraft

Amplify trust with society/partners/customers(Win-Win-Win)

Bridgestoneʼs unique “Real x Digital” platform

Passenger Car Network

Approx.

18,400 sites

Truck & bus Network

Approx.

7,100 sites

Mining Vehicle Network

Approx.

130 sites

As of June 30, 2022

Bridgestone 3.0 Journey 2023 Integrated Report

43How we get there | Business Strategy and Progress

Enhancement of the User Experience (UX) in
the Tire “Use” Phase

Solutions Business2

Establish a Circular Business Model for
Truck and Bus Tires

In the retail and service solutions business for passenger
cars, the Group is expanding tire and vehicle maintenanceservices tailored to each customer, mainly in the UnitedStates where we boast a Dan-Totsu network of around 2,200
company owned stores including Firestone Complete Auto
Care. The Group will also expand business in Japan,
Australia, and Thailand.

Expanding EV Charging Services in Europe andNorth America
To give an example, the Group is expanding its EV charging
network in the mature mobility markets of Europe and theUnited States to accommodate the accelerating shift to EVs.
The Group has partnered with the EV charging solution
provider Blink Charging in the United States and is enhancing
charging solutions in Europe as well.
Through these initiatives, the Group is improving UX
while contributing to the realization of carbon neutrality
throughout the value chain by combining ENLITEN, the “newpremium in the EV era”, with the mobility solutions
business that supports the electrification and optimal
operations of fleets.

Deployment of New Network “B-select” in JapanThe Group intends to expand its B-select retail and service
solutions network throughout Japan, providing optimal
high-quality service solutions nationwide based on athorough understanding of each customer’s issues on-site.
For B-select, the Group will first partner with company
owned stores and special contract tire dealers. In the future,
the network will be expanded to include new partners thatshare the Group’s vision and direction. Around 700 stores
selling passenger car tires are currently participating in the

Tire-centric Solutions BusinessIn its tire-centric solutions business for trucks and buses,
the Group is taking on the challenge of establishing a circularbusiness model that maximizes tire value by fully using eachtire asset until the end of its life through the integrated
approach combining Dan-Totsu products and retreads. The
first element is to expand the Group’s lineup of products
equipped with ENLITEN the “new premium in the circularbusiness era”. Based on these competitive new tires withenhanced durability and wear resistance, the Group will
increase the number of retreads for each tire, thus contributing
to improved resource productivity and reduced CO2 emissions.
For this purpose, the Group is investing in retread reinforcement,
mainly in the United States and Japan. In addition, the Groupwill provide advanced tire models with features such as tire
wear and durability prediction by integrating tire data businesses
that utilize digital technologies including Tirematics, a tire
monitoring system, and Radio Frequency Identification (RFID)*,
which enables individual tire management throughout the
product lifecycle. By deepening the link between the “produce
and sell” and “use” phases, the Group will promote theestablishment of a circular business model that amplifies thevalue of its Dan-Totsu products and expand social value andcustomer value. In Mid Term Business Plan (2024-2026), the Groupwill expand its business mainly in North and Latin America where it
has a competitive advantage, as well as in Japan and Australia.
*A utomatic recognition technology for contactless reading and writing of
information from IC tags, etc., using wireless communication such as
electromagnetic fields or radio waves.

Circular Business Model (For truck and bus tires):● 

Aspiration in 2030

program, and we aim to boost this number to 1,000 going
Logistics

forward. For truck and bus tires, the Group will establish a

Sales

network of around 400 stores this year and 500 stores in the

Use/
Maintenanceservice

Manufacturing

future. By doing so, the Group plans to achieve its goal of
expanding its Dan-Totsu network nationwide. This will makeit more convenient for passenger car customers to purchasetires while ensuring that customers use tires with safety andpeace of mind. It will also contribute to maximizing

Unique “real” x “digital” platform

R&D

Reuse

Real network

operations and realizing efficiency, including throughworkload reduction for logistics industry customers.
Moreover, B-select will create both social value andcustomer value by reducing environmental impact.

Product
strategy

Reuse

Procurement

44

RecycleWho we are

Where we are going

Enhancement of “Strong” Real Capabilities
New Tires

How we get there

Data

Enhancement of Digital Capabilities
Radio Frequency Identification (RFID)

The starting point for everything is our Dan-Totsu products

The Group promotes equipping truck and bus tires with RFID

that pursue high durability and wear resistance, are adapted

tags, which allow individual management of tires across their

to customer usage conditions, and take retreading into

lifecycle from new products to retreading and maintenance.

account. In 2022, the all-round studless W999 was launched

RFID-tagged tires were first launched in Europe in 2019 andin Japan. It is Bridgestone’s first truck and bus tire equipped

the technology is now being rolled out globally, with plans forwith ENLITEN―the base technology for product design toalmost all truck and bus tires used in Europe, the United States,

realize “ultimate customization”. This tire boasts exceptional

and Japan to be equipped with RFIDs by 2030.

balance between ice and snow performance and wear life,

In addition, the Group intends to develop next-

and also achieves enhanced performance against irregular

generation RFID tags through co-creation with TOPPAN Edge

wear. As a Dan-Totsu product, it serves as the starting point

Inc. Through the integration of Bridgestone’s tire development

for the Group’s circular business model, with benefits such as

and manufacturing technology with the RFID technology ofextending the tire replacement cycle and consequently

TOPPAN Edge, the Group aims to develop next generation tags

improving resource productivity.

that can communicate accurately from even greater distances
as well as to establish technology for mounting the tags onto

Retreads

tires. This will improve the safety of tire management and

The Group is investing to reinforce its retreading production

maintenance operations and substantially reduce on-site

capabilities, mainly in the United States and Japan where it

workload. It will also enable faster and easier management of

has a strong business foundation for truck and bus tires. In

various data for each tire, including production date, factory

the United States, the Group has made investments toinspection details, shipping date, vehicle installation date,enhance production of retread materials at its Abilene andand other tire inspection details. Based on this information,

Joliette plants. The Group provides high-quality retreaded

the Group aims to achieve both social value and customer

tires to many fleet companies through Bandag, LLC, a leading

value by providing retreads, services, and solutions according

retreading company that it acquired in 2007. In Japan, theto each customer’s operations.

Group is making strategic growth investments aimed atenhancing equipment and manpower at its retread

Tire Monitoring System: Tirematics

manufacturing sites. In both the United States and Japan, theTirematics is a digital tool for monitoring tire pressure andGroup is building a strong foundation for providing solutions

temperature. Rollout of this service started in Europe in 2012

linked with its nationwide service solutions network.

and it is now offered globally with enhanced service content.
Tirematics contributes to safe driving and stable vehicle operation
as well as to reduction of environmental impact, including
reducing CO2 emissions during vehicle operation by preventing
deterioration in fuel efficiency due to low tire air pressure.
Tirematics was introduced in the Japanese market in 2020
and the Group started a real-time remote monitoring service
for tires in 2022.
In addition to helping to prevent tire-related troubles
by improving the accuracy of day-to-day tire inspections,this service also enables the sending of real-time alerts tovehicles, fleet managers, and drivers in the event of any
abnormal tire conditions detected while driving. Additionally,
the ability to remotely verify tire condition and vehicle
location facilitates agile maintenance services leveraging theapproximately 900 sites in Bridgestone’s domestic tire service
and solutions network.

Bridgestone 3.0 Journey 2023 Integrated Report45How we get there | Business Strategy and Progress

Mining Solutions Based on the “NewPremium” Dan-Totsu Product Bridgestone
MASTERCORE
In its mining solutions, the Group will reinforce expansion of
Dan-Totsu product Bridgestone MASTERCORE as well as
reinforce solutions combining its strong “real” capabilities mainly
at on-site service locations with its “digital” capabilities.
As the core of the Group’s mining solutions, the new DanTotsu product Bridgestone MASTERCORE realizes ultra-highdurability based on the combination of its unique newtechnologies including steel cord manufactured in-house.
Bridgestone MASTERCORE can be customized to eachcustomer’s needs and the operating condition of each vehicle
by improving durability and other desired tire performance
without sacrificing performance in other areas. Based on
customer recognition of their value, Dan-Totsu productBridgestone MASTERCORE expanded to 88 mines as of theend of 2022. The Group plans for MASTERCORE to account foraround 90% of ultra-large 63-inch mining tires in 2023 and toreach nearly 100% by 2030.
In the tire “use” phase, the Group proposes betterways of using tires to contribute to the optimization ofmining operations leveraging the Group’s digital capabilities
to analyze tire and vehicle data. This is based on the strong,real capabilities of the Group’s approximately 130 solutions

Solutions BusinessI think Bridgestone MASTERCORE is one of the coreproducts in Bridgestone’s premium tire business. The first
product launched was one of the world’s largest tires, the59/80R63 MRPS/MVRF, designed for the world’s most
severe market in terms of durability.
The larger the mining tire, the harder it is to ensure
its durability, and the higher the difficulty in developing
them. Faced with the daunting task of meeting extremely
high performance requirements in a short period, we
gathered the most innovative technologies for tire
durability at the time and took on the challenge of mass
production within a limited time frame. Evaluation oftires under development is typically conducted near the
final product stage. However, because of the tightschedule, we had to assess each technology individually,
with team members doing their best to distinguish thegood from the bad. Some were even sent to mining sites
overseas on short notice to cut the tires for analysis.
While staying close to customers on-site tounderstand their issues, we got through it with hard
work and perseverance. To sum up my reflections on ourdevelopment in one word, I believe the Japanese phrase
ungaisoten (there is always light beyond the clouds) ismost appropriate. With the entire development teamsharing our target of contributing to the optimization ofmining operations by providing value to customers as a“new premium”, we were able to overcome on-sitedifficulties and dedicate ourselves to development.

sites which provide services, mainly centered on Otracoacquired in 2021, and through the trust built with customers
on-site. The Group will enhance monetization throughbenefit sharing by enhancing data analysis and customer
value verification for our mining customers on-site.
Currently, the Group has approximately 70 long term
contracts that combine Dan-Totsu products and solutions, and
the Group will promote further expansion.

Junya AsariManager, Mining, Industrial and Construction Tire Design Section I, Tire
Development Division II

Real

46

DigitalWho we are

Where we are going

How we get there

Data

Strategic Starting Point of the Solutions
Business: Aviation Solutions
Premised on safety and peace of mind above all, aircraft tires
are required to be able to withstand harsh conditions in areas
such as load, speed, and heat/cold. This is therefore a domain
where Bridgestone’s core competencies in “mastering rubber”
and “mastering road contact” can be leveraged to the fullest.
The Group has already established a circular business model thatmaximizes the value of each tire through multiple retreads.
By promoting co-creation with customers and system

Kohei Hara

vendors, the Group will provide tire wear and durability

Aviation Tire Solutions Sales & Business Planning Department

prediction using digital technologies, management of eachtire that is indispensable for flight operations with peace ofI am responsible for promoting and planning aviation
solutions and predicting tire replacement timing basedon data. To co-create value with customers, I tried tounderstand not only on-site work processes but also theperspectives and ideas of those who carry out the work.
This has involved accompanying maintenance workers onnight shifts and visiting sites multiple times to ensure that
I share an understanding with everyone involved in themaintenance planning process. Although it was a major
challenge that required me to go beyond my usual
duties, in the end I felt I was able to build a friendshiplike relationship with shared goals. Maintenancepersonnel have told me that our solutions have enabled
them to plan and schedule their work more efficiently,
giving them more time for other maintenance besides
those for tires, which in turn contributes to improving theoverall quality of aircraft equipment and ensuring its safe
operation. They have also explained that it is now easier toplan for securing tire stock prior to weekends and holidays.
I am committed to working with customers to create a
new way of working in the aviation industry so thatplanned periodical tire replacements become the norm.

mind and safety, and efficient tire inventory plans. Throughthese initiatives, the Group will amplify data value, maximize
tire asset value, and contribute to sustainability.
As its pioneering circular business model, the Group will
enhance aviation solutions based on the trust with aircraft
manufacturers, airlines, and system vendors.

Framework for Co-creation with Airlines in Aviation Solutions● 

AirlineFlight data

Data analysis

Planned tire
replacement

Wear & replacement
prediction

Efficient aircraft
maintenance planand tire replacement

New tire + multiple retread
Establish a circularbusiness model

Aviation Solutions Enhancement Based on the Trustof Aircraft Manufacturers, Airlines, and System Vendors

Bridgestone 3.0 Journey 2023 Integrated Report47How we get there | Business Strategy and Progress3

 obility Solutions Aiming to Establish
Ma Mobility Tech Business in North
America

Solutions Businesstires, tire management, and maintenance. As a model that
ensures safety, peace of mind, and efficient operations forfleet operators and drivers, the Group will expand theconcept from Europe to North America where we have

The Group’s mobility solutions business amplifies the value ofstrong foundation for solutions such as retreading.

tire data and mobility data by connecting with approximately

 uilding Bridgestone’s Mobility Ecosystem:
B
One-stop Service that Supports the Transition toElectric Fleets

one million contracted vehicles mainly through Webfleet
Solutions in Europe and Azuga in North America. Whilepursuing growth as a stand-alone business, mobility
solutions is also expanding synergies with the premium tire

In 2022, Webfleet Solutions entered into a partnership withbusiness and other solutions businesses with the aim of

the German startup Chargylize to support fleets in theirestablishing a mobility tech business.

transition to EVs. Through its use of vehicle data analysis for
proposals of the best-suited EV models for customers, andsupport for optimal operations in areas such as electric fleet

Launch of New Service “Fleetcare”
As a first step toward expanding synergies, Bridgestone

management and EV charging solutions, the Group will

started a new “Fleetcare” service in Europe in 2022. The

strive to support a carbon neutral mobility society fromservice offers everything in a single contract as a package

the ground up.

covering fleet management in mobility solutions, premium

Premium tires• Premium tire sales

Tire-centric solutions & solutions

Vehicle (fleet) management• Tire maintenance/repair• Tirematics（Tire monitoring）• Retreads• Tire management across the lifecycle of new andretreaded tiresetc.

• Optimum operation, navigation for traffic• Fleet operation optimization with digital tools• Green & safe driving support• Vehicle & asset tracking including EVs
etc.

Bridgestone as “One team” provides customized service in one package—offer as “One contract & One invoice”
Premium tire businessretread, tire monitoring

Retail & service solutions

Mobility solutions

We’ve created a holistic ecosystem to support the EV journey of our customers. Built with carefully
selected partners, such as Chargylize, and BIA Power for smart charging, we accelerate our customer’s
EV transition in a safe and sustainable way. Once up and running, our datasets ensure the EV fleet runs
economically. In this way, Bridgestone is the catalyst that enables the customer to have a positive
societal impact.

Mariska Matadin

Manager, Business Development EV, Fleet Management Solutions, Bridgestone Mobility Solutions

48

Who we are

Where we are going

How we get there

Data

Evolution in Mid Term Business Plan (2024-2026)
1. Reinforce sustainable global premium tire business
Passenger car /Truck & bus tires

N. America

EuropeJapan

S. America

Southeast Asia

2. Expand premium tire business in emerging countries& growing markets

Australia

India

Middle East

3. E volve specialties tires into a “Dan-Totsu”

mature countries

Premium tire business

Tires for mining &construction
vehiclesAircraft / Motorcycle
tires

etc.

4. Expand tire-centric solutions business mainly inpremium businessPremiumleaderstrategy

China

Passenger car tires

Passenger car
tires

Premium niche
strategy

N. America

Japan

Retail & service
solutions network

Australia Thailand

Truck & bus
tires

Retreadtire maintenanceN. America S. America

Japan

Australia

Tire-centric solutions business

Mining solutions

Aviation solutions

Expand solutions around MASTERCORE which has
Dan-Totsu product power

5. Establish mobility tech business in N. America

Build next generation solutions as a strategic starting
point to establish solutions business model(Focus on BtoB and truck & bus tires)

Reinforce coordination between Webfleet Solutions (Europe)and Azuga (N. America)- Enhance and expand Fleetcare in N. America

Based on progress made in the premium tire business and the solutions business, in Mid Term Business Plan (2024-2026),
the Group will divide its business into five stages. It will clearly identify which business, product category, and region toreinforce and expand (on both a global and regional basis) and pursue operational excellence across the entire value chain.

Five Business Stages
1. The Group will further reinforce the premium tire business that it has focused on enhancing in Mid Term Business Plan
(2021-2023) and evolve it to a “sustainable global premium tire business” toward the next stage. Strategies will be
developed according to Bridgestone’s position in each region. The following three regions will the core: North America,
where the Group aims to acquire a leading position; Europe, where it aims to establish a unique position by integrating
solutions while still implementing a follower strategy; and Japan, where it aims to maintain and reinforce its Dan-Totsu(the clear and absolute leader) leading position. The Group will also enhance its sustainable global premium tire business inregions that are expected to become the next profit contribution areas: Latin America, Southeast Asia, and the Middle East.
2. In emerging countries and growing markets, the Group will enhance the premium segment of its passenger car tirebusiness, especially in India and China.
3. T he Group aims to evolve specialties tires—including off-the-road tires for mining vehicles, one of its primary sourcesof revenue and profit—into a Dan-Totsu premium business combining premium tires and solutions. The Group will takea premium leader strategy for off-the-road tires for mining vehicles, based on its Dan-Totsu product Bridgestone
MASTERCORE. For aircraft and motorcycle tires, the Group aims to establish a premium niche strategy.
4. T he Group will expand the tire-centric solutions business mainly in mature countries. For passenger car tires, it willreinforce its retail and service solutions primarily in the United States, as well as in Japan, Australia, and Thailand. For
truck and bus tires, based on the retread business, the Group will expand in North America and Latin America where it
has competitive advantage, as well as in Japan and Australia.
5. A
 s a new challenge, the Groups aims to build a mobility tech business that links premium tires, tire-centric solutions,and mobility solutions to provide new value to customers in North America. It will begin by reinforcing coordination
between Webfleet Solutions in Europe and Azuga in North America and expanding the rollout of Fleetcare—a package
service that includes tire services and fleet management, which will be a key factor in obtaining a competitive
advantage going forward.
With this overall picture, the Group will continue building Mid Term Business Plan (2024-2026).

Bridgestone 3.0 Journey 2023 Integrated Report49How we get there | Business Strategy and Progress

Diversified Products Business
Bridgestone E8 Commitment

EnergyExtension

EmotionEase

Sharply Focus on Areas Where Bridgestone’s
Core Competencies Can Be Leveraged:
Enhance Premium Segment and Solutions
The diversified products business, which sharply focuseson areas where Bridgestone’s core competencies can beleveraged, will create social value and customer value
centered on enhancing the premium segment, offeringsolutions, and promoting sustainability in the same way as
the premium tire business. In Mid Term Business Plan (2021-

Air Springs for EVs: Support the Shift to EVs
The air spring business in the United States leverages innovativetechnologies to develop and manufacture air springs which
support improved electricity consumption and battery
protection for EVs. As global demand for EVs continues to grow,the Group is taking measures such as expanding its production
capacity for air springs for EVs at its plant in Williamsburg,
United States, contributing to the realization of a carbon
neutral mobility society from the ground up.

2023), the Group is increasing production capacity for air
springs for EVs in the United States, premium rubber tracksin Europe, and premium hydraulic hoses in Asia. Major
initiatives are presented below.

 remium Hydraulic Hoses
P
Supporting Nonstop Operation for Various Industries

Justin Monaghan

Hydraulic hoses are used in construction machinery around thePresident, Firestone Airide
Bridgestone Americas, Inc.

world, such as on excavators. The Group’s hydraulic hosebusiness is based on the Dan-Totsu products born fromtechnology for “mastering forming hybrid polymer” (forhandling rubber) and on core competencies such as the Group’s
global manufacturing and sales footprint. Its strength is its
business model that links original equipment, replacement andsolutions. Through the investment made to expand production
capacity for premium hydraulic hoses at the Thailand plant in
2022, the Group reinforced its structure for the “produce andsell” phase. In addition, for the product “use” phase, the Groupwill amplify its value proposition by enhancing solutions thatAt Firestone Airide which develops the air spring businessmainly in the United States, we continue to drive innovative
air spring technology designed to eliminate vibration andharshness across global transportation and work as a key
enabler for a safer, more efficient, accessible, sustainable,
and connected mobility experience in order to contributeto the evolution of a mobility society. Through air springs
specifically designed for EVs, we will continue to support
the realization of a carbon neutral mobility society fromthe ground up with the creation of social value andcustomer value.

leverage the Group’s leading global network of sales channels,
which includes mobile van services in the United States.
Overview and Core Competencies in the Diversified Products Business● BusinessCore competence

Support operations invarious industries

Hydraulic/highperformance hose
Rubber track
Support lifestyles that prioritize
safety and peace of mind

Plastic piping
Seismic isolation
Support the shift to EV
from the ground up

Extension

Ease

EnergyAir spring (U.S.)
Support sports life andmobility life that inspires
excitement and spreads joy

SportsCycle
50

Golf ball
Golf club
Power assisted bicycle
BicycleEmotionTechnology coremastering forming
hybrid polymer

Strong brand power
fostered by long history
and track record
Premium product power(high performance,high added value)
Ability to make proper
technological proposal
based on Genbutsu-Genba
and customer focus

Hydraulic hose

Rubber tracks

Air spring

Plastic piping

Who we are

Where we are going

How we get there

Data

GuayuleNatural rubber plantation

Installation of solar panels at factories

Retreading

Race tire composed of rubber from guayule for INDYCAR® SERIES

Bridgestone 3.0 Journey 2023 Integrated Report51How we get there

Sustainability Business Model
Bridgestone E8 Commitment

EnergyEcology

Evolution of the Group’s Sustainability Business Model
Further Evolution of the Group’s Unique Model
Integrating Sustainability and Businessacross the value chain, from the “produce and sell” and “use”

Over the years, the Group has shown a commitment to living

Model and transform it to a regenerative business model inin harmony with nature, based on its Environmental Mission

line with the concepts of the science-based targets (SBTs) forStatement, which was refined in 2011. The Group has beennature action framework, namely, to avoid actions that harm

implementing initiatives to achieve its vision of “living in

the environment, reduce impact on nature to the greatest

harmony with nature” in order to reduce CO2 emissions andextent possible, contribute to the restoration andtackle the urgent issue of global warming through technology

regeneration of the environment, and fundamentallydevelopment aimed at valuing natural resources.

transform systems. This evolution will help to achieve aof products to their “renewal” to raw materials.
In 2023, the Group will evolve its Sustainability BusinessIn 2020, the Group announced its sustainability
business framework and is working to establish a uniquenature-positive world where the Group can help stop andreverse the loss of natural ecosystems.
In the “produce and sell” phase, the Group is promoting

Sustainability Business Model that links its business withefforts to realize carbon neutrality and a circular economy

carbon neutrality by enhancing introduction of renewable

SBTs* for Nature: Action Framework* Science-based targets

Transform

Transform
Restore &Regenerate
ReduceRestore/Regenerate

Renew Recycle business
EVERTIRE INITIAVE

Avoid■ Promote the recycling of end-oflife tires to raw material such assynthetic rubber through cocreation■ Expand the usage of recycled
carbon black- Cooperation as a tire industry,
etc.

Avoid
Prevent impacts

ReduceMinimize impacts

Restore & Regenerate
Recover and increase resources

Transform

2030• 40% rate
renewable

2050• 100%

Internal & external transformation of organizations & systems

52

Who we are

Where we are going

How we get there

Dataenergy on a global basis. Toward realizing a circular economy,business, renewing tires to rubber and other raw materials.

the Group is strengthening the development of materials,

The Group launched the EVERTIRE INITIATIVE in 2022 toenhancing the natural rubber business, and promoting thepromote tire recycling. Through this, the Group aims toguayule business, with the aim of increasing the proportion

accelerate the social implementation of technologies andof recycled and renewable resources in its products.

systems toward achieving a sustainable future where

In the tire “use” phase, the Group is expanding its

recycled tires are the standard.

solutions business that allows customers to use tires safer,longer, better, and more efficiently. As a leading example, theGroup is establishing a circular business model thatmaximizes the value of tires by combining and providing newtires, proper maintenance services, and retreads that replace
the tread after tire use.
In the “renew” phase, the Group has started initiatives
to restore and regenerate resources through the recycle

Upstream supply chain
tree planting
oughthr
sta te d a r e a s
a ls de va
ov i nnio

I ncr ea s
ea nd af CO
for 2 res emtat

CO2 reduction in mfg. fields

R&D

Procurement

Production

Sales

Tire usage

Vehicle Operation

Support mobility
with peace ofmind and safety

Retreadi al Recyclin

Tire toRaw Material

Tire toRubberTire to
Tire

ou
es
er
abl
d diversify renew

Avoid

Ma

vi
ty
,e
xp
and
an

rc
es

i
ct
du
pro

ter

ove
Impr

Regenerate

CO2 reduction effect by resource circulation

CO2 reduction effect by resource circulation

End-of-life tire collection

Raw material recycling / External sales■ Material development to improve recycled & renewable material ratio■ Increase the ratio of renewableenergy (electricity), promote shift
to Green & Smart factories⇒ Reinforce approach to live in harmony with nature■ “New Premium”
ENLITEN business strategy

Contribution to
CO2 reduction atcustomers’ usageg c olle cti o n

Use Solutions business

Produce■ Guayule business■ Natural rubber business• Diversification of natural rubber sources• Introduce elite trees that grow fast
■ Valuing water resources:• Can be grown in arid zones with
• Own company plantations andWater Stewardship Policy
little water.
support small-scale farmers
Contribute to tree planting and• Certified ISO 14001 at Liberia plantation
Sell
afforestation in devastated areas■ Sustainable procurement activity: Reinforce supplier engagementsi nReduceProduce and sell Premium tire business

Development & procurement aligned with product strategy

Caintenance / Rep
Ma
air

g

CO2 reduction in manufacturing fields

Use■ Promote actions for TRWP
(Enhance long-life products, linkwith solutions)■Retread■Truck & bus / mining / aviation solutions* TRWP＝Tire & Road Wear Particles

of materials using recycled andresources• 50% reduction in CO2 emissions (Scope 1, 2) from 2011 level• Contribute to reducing CO2 (Scope 3) more than 5x our emissions

sustainable materials• Carbon neutrality**Achieving carbon neutrality for Scope 1, 2, and contributing toward carbon neutrality in Scope 3

Bridgestone 3.0 Journey 2023 Integrated Report53How we get there | Sustainability Business Model“Produce and Sell”
With the aim of establishing the Sustainability Business Model, the Group focuses on realizing carbon neutrality and acircular economy.

Initiatives toward Carbon Neutrality

Obtention of SBT Certification
We have obtained Science Based Targets (SBT) certification

The Group has set clear targets for reducing its total CO2

from the SBT initiative (SBTi) concerning our CO2 reduction

emissions (Scope 1 and 2) by 50% compared with 2011 bytargets for 2030. Science-based targets refer to reduction

2030, and to realize carbon neutrality by 2050. The Grouptargets for greenhouse gas emissions set by companies forachieved an approximately 30% reduction in 2022. The plan

the next 5 to 10 years that are aligned with the goals of thefor 2023 is to reduce CO2 emissions by over 30% compared

Paris Agreement. The recent certification covered ourwith 2011.

mid-term CO2 reduction targets for 2030 (Scope 1, 2, and 3).

The Group has also set a clear target to reduce Scope 3

In addition, the Group obtained an A- rank or above in

CO2 emissions by more than five times its own emissions. In

the CDP* index for the seventh year in a row as a company

order to achieve this target, the Group is improving tirethat implements superior initiatives for climate change.

rolling resistance and making proposals for efficient vehicle*C DP is an international nongovernmental organization that collects anddiscloses environmental information related to companies and cities. Based on
the requests of institutional investors, companies, and other organizations, the
CDP encourages organizations to disclose information regarding climatechange, greenhouse gas emissions, water management, and otherenvironmental concerns and also investigates and evaluates suchorganizations.

operation in mobility solutions. The Group is also reinforcing
engagement with suppliers.

 einforcing the Introduction of Renewable Energy
R(Electricity)
To achieve its targets, the Group is installing solar panels at
its plants around the world as well as transitioning electricity
purchased from external sources to power sourced fromrenewable energy. The Group’s renewable energy (electricity)
ratio was 26% in 2022, and is expected to reach 50% by 2023
and 100% by 2030.

Reinforcing the Introduction of Renewable Energy (Electricity) Globally toward the Realization of Carbon Neutrality● 

EuropeAll European sites of Bridgestone Europe NV/SA (BSEMIA):Japan
Switched to 100% renewable energy for consumed
electricity (2021-)
2022 Burgos plant (Spain):Start of operation of large-scale solar power generation system

Hikone, Shimonoseki, Tosu and Kitakyushu plants:
Switched to 100% renewable energy for purchased electricity (2021-)
Installation of solar power panels:~2022: Tochigi, Kurume, Tosu and Kitakyushu plants,
B-Innovation facility in Bridgestone Innovation Park,
Chemical & Industrial Products Technology Center (Yokohama)
2023 Shimonoseki & Kitakyushu plant: Installation oflarge-scale solar power panels

Asia

Thailand, Chonburi plant:
Installation of solar power panels (2021)

China, Tianjin & Wuxi plant:
Switched to 100% renewable energy forpurchased electricity (2021)

2022
Thailand, Nongkhae plant:
Installation of large-scale solar power panels

54

U.S.
Aiken plant:
Installation ofsolar power panels (2021)

Who we are

Where we are going

How we get there

Data

Initiatives toward Realization of a Circular Economy

 uayule Business to Diversify the Supply ofG
Natural Rubber

Toward the realization of a circular economy, the Group has

The Group will also strengthen its guayule business to

set clear targets to achieve 100% sustainable material use by

diversify natural rubber supply sources. Unlike the para rubber

2050, and a 40% recycled and renewable material ratio bytree, where cultivation is geographically concentrated and2030. To achieve these targets, the Group is reinforcing

subject to disease and climate change, guayule can be growninitiatives in alignment with product strategy and retreading.

in arid regions, making it a viable alternative to natural

The Group achieved a recycled and renewable material ratio

rubber. Cultivating guayule also has the added benefit ofof approximately 38% in 2022 and will continue to improve it

greening these arid regions.

further in 2023.

 evelopment of Tires Using Recycled andD
Renewable Materials
The Group is developing technologies for mass productionof tires using recycled and renewable materials. In Japan,
the Group is driving development for production of tires
made with 90% recycled and renewable materials or MCN(Material Circularity Number) for certain motorsports tires
and passenger car manufacturers. In the United States, theGroup has already succeeded with the production of test
tires made with 70% recycled and renewable materials.
In the world of motorsports, where maximum
performance is required under extreme conditions, racetires made with guayule-derived natural rubber, which has
expectations as a substitute for natural rubber from the pararubber tree, are being employed in the NTT INDYCAR® SERIES.
This means that the tires are being verified at the very forefrontof the industry. In 2023, the Group intends to introduce tires
made with 60% recycled and renewable materials for the
Bridgestone World Solar Challenge and continue to develop
new technologies to drive further innovation.

Development of Tires Using Recycled andRenewable Materials● 

MCN: Material circularity number(recycled & renewable material ratio)

Technology
development• Development of tire technology with MCN of 90% (Japan)• Production of test tire with MCN of over 70% (U.S.)
Continue technology development
toward mass production
2022: Supplied tires composed of rubber derived
from guayule to the NTT INDYCAR® SERIES

Demonstration

 atural Rubber Business: Building a Supply
N
System for Sustainable Renewable Resources andPlanting New Trees on Devastated Land
The Group owns and operates natural rubber plantations in
Liberia and in Sumatra and Kalimantan in Indonesia. It is
actively working toward the establishment of sustainablerubber plantations throughout the industry. In Liberia, ourplantation business has been in operation for over 90 years
since the period when Firestone owned it before the merger
with Bridgestone, and we make efforts to contribute to the
local community. At the two locations in Indonesia, the Grouphas made investments in the reforestation of elite trees with

2023: Plan to debut tires with MCN ratio of 60% for
the Bridgestone World Solar Challenge

fast growth rates and stable yields.

Demonstrate technology through motorsports

approximately 5.9 million tons of fixed CO2. The Group will

The Group’s three natural rubber plantations maintaincontribute to the realization of carbon neutrality by expanding

Mass production&commercialization

Toward 2030:
Continue reinforcing the 3 activities
for mass production tires.
1. Reduce resource consumption (REDUCE)
2. Circulate resources (REUSE, RECYCLE)
3. Enhance and diversify renewable materials

the volume of absorbed and fixed CO2 through new planting
initiatives in devastated areas. In addition, the Group is building
a supply system for sustainable renewable resources that
supports the premium tire business and Dan-Totsu products aspart of its efforts to achieve a circular economy.

Bridgestone 3.0 Journey 2023 Integrated Report55How we get there | Sustainability Business Model

Tire “Use” Phase
Even in the tire “use” phase, the Group is working to realize

Environmental Contribution through Retreads

carbon neutrality and a circular economy. In its tire-centric

Retreading contributes to improved resource productivity

solutions, the Group is establishing a circular businessand reduced CO2 emissions. Assuming that each customer

model that links ENLITEN, which is the “new premium in thewill use Bridgestone tires three times, using one set ofcircular business era”, with retreading to maximize tire value

Bridgestone’s new low rolling resistance tires and thenby fully using each tire asset until the end of its life. This

retreading them twice, rather than using three sets of new

integrated approach also improves resource productivity

tires, can reduce the amount of raw materials used and CO2

and reduces CO2 emissions.

emissions generated by half over the entire life cycle,
excluding the “use” phase.

The Group has set a target of reducing CO2 emissions acrossthe lifecycle and value chain of its products, services,

The Group will continue to accelerate its efforts to reduce CO2

and solutions (Scope 3) by more than five times the amountin society together with its customers and business partners.

of CO2 emitted by its operations (Scope 1 and 2) by 2030,
with 2020 used as the baseline year. In 2022, the Group wasable to achieve a 0.95x reduction contribution, which was asignificant improvement from 0.5x in 2021.

●

Environmental Contribution across the Lifecycle of Tires
Procurement

Production

New tire (conventional) × 3

Sales

Tire Usage/Vehicle Operation

RetreadRecycleResource productivity（Efficient use of resources)

Greenhouse gas emissions(calculated based on CO2 emissions)

100

100

50% reduction

51% reduction

Fuel efficient new tire + Retread tire × 2

50 49
*

*

* Calculated based on Tyre LCCO2 Calculation Guidelines Ver 3.0.1 (The Japan Automobile tire Manufacturers Association, Inc.), example - Truck & Bus tire (275/80R22.5)

56

Who we are

Where we are going

How we get there

Data“Renew” Tires to Raw Material Phase VERTIRE INITIATIVE: Recycle BusinessE
Create a Society Where Tire Value Circulates

and development projects under the initiative called“developing chemical product manufacturing technologies

The Group’s recycle business is positioned to play a vital roleutilizing used tires” promoted by the New Energy andin Bridgestone’s unique Sustainability Business Model by

Industrial Technology Development Organization (NEDO) of“renewing” tires to rubber and other raw materials, which

Japan and adopted as part of NEDO’s Green Innovation Fund.

represents initiatives to “restore and regenerate”. The GroupWork began in 2021, and the Group has already started

is currently exploring technologies and business models with

pyrolysis tests using demonstration equipment. Going

the aim of commercializing this business by 2030. As a leader

forward, large-scale demonstrations are planned with thein the tire and rubber industry, the Group launched the

expectation of starting mass production by 2030.
Additionally, the Group is promoting various joint“EVERTIRE INITIATIVE” in 2022 to call for co-creation toward
tire recycling, even outside the industry. The Group has

projects globally such as an initiative with LanzaTech NZ, Inc.

started various co-creation projects with different partners toin the United States that aims to produce chemicals and raw

realize a circular economy where tire value continue tomaterials for tires by applying LanzaTech’s gas fermentation“circulate” by considering end-of-life tires as a resource andprocess to end-of-life tires. As a leader in the tire and rubber“renewing” them to raw materials.

industry, the Group will continue to take on the challenge ofleaving a better environment for future generations.

The Group is engaged in a co-creation project with ENEOS
Corporation, which involves precise pyrolysis of end-of-lifetires to produce butadiene and recovered carbon black, which
are raw materials for tires. This project is one of two research
Co-creation Project with ENEOS Corporation● 

Synthetic rubber
production, etc.

Tire manufacturingCollection andshreddingTire use
Recovered carbon black

Butadiene, etc., derived
from used tires

Used tires

R&D scope

Chemical productmanufacturing

Tire derived
recycled oil(Naphtha, etc.)

Quality & yield optimization

Refining

Tire derived oil

Pyrolysis

Develop optimal catalyst

Develop TDO suitabIe for refining

Process building

By-product utilizationE VERTIRE INITIATIVE—Aiming to Realize a Future Where Recycled Tires Are the Standard
The co-creation project of Bridgestone and ENEOS Corporation forchemical recycling of end-of-life tires is also a national project tosolve social issues toward the realization of a sustainable society.
The project still needs to overcome some difficult technical andbusiness challenges in order to commercialize recycling. However,
together with co-creation partners who share our mindset, we willcontinue to take on the challenge of creating a future where recycledtires are the standard, as set forth in the EVERTIRE INITIATIVE.

Yuri Hashimoto

Recycle Business Preparation officeBridgestone 3.0 Journey 2023 Integrated Report57How we get there

Technology and Innovation

New Core Competency

Bridgestone E8 Commitment

EnergyEcology

Efficiency

Extension

Emotion

Empowerment“Technology and innovation” is one of the new core competencies supporting the evolution of the Group’sbusinesses. The Group will combine the strong “real” capabilities it has cultivated throughout its history with“digital” capabilities. It aims to generate technology and innovation through co-creation with stakeholders tocreate new value.

Full-scale Operation of Bridgestone
Innovation Park: From Interaction with
Empathy to Co-creation

Bridgestone Innovation Park aims to accelerateinnovation in technology, business models, and design
through co-creation. The Group will also promote moreagile R&D by combining strong “real” capabilities, such as

Bridgestone’s R&D facility in Kodaira, Tokyo was redeveloped

the craftsperson skill of mastering rubber that has been

as Bridgestone Innovation Park, a global hub for innovation

cultivated since its founding, with “digital” capabilities,

that helps the Company connect with employees, society,such as simulations, to repeat the process of developing

partners, and customers to create new value. Full-scale

and testing new ideas immediately. In 2022, around 1,000

operation commenced in 2022. Bridgestone Innovation

people visited the Open Innovation Hub, giving rise toPark consists of three main facilities designed to promoteroughly 200 seeds of co-creation, 10 of which haveinteraction with empathy and cultivate relationships

progressed to a joint research stage. Co-creation

through co-ideation and co-R&D to realize co-creation of

initiatives are being conducted in a limited members-onlyvalue. First, Bridgestone Innovation Gallery aims toarea designed specifically for this purpose.

acquire empathy by showcasing the Group’s history, DNA,

Starting in 2023, Bridgestone Innovation Park willbusiness activities, and future initiatives. Second,also be used as a base for the Japan tire business to

B-Innovation is an innovation center composed of

encourage co-creation by integrating R&B (research andBridgestone Open Innovation Hub, where people can view

business). The Bridgestone Group is committed to working

and engage with core Bridgestone technologies andwith employees, society, partners, and customers to

products with the aim of giving rise to new ideas, therealize a sustainable society through co-creation.

Rough Prototyping Studio, where machine tools are used
to give shape to ideas, and the Co-creation Office, which isopen to external partners. Third, B-Mobility is a proving
ground that can be used to quickly experience and verify
the performance and potential of prototype mobility
technologies and products with actual vehicles.

One of my roles at the Open Innovation Hub is to help partners who have empathized with
Bridgestone to understand the potential for value creation with the Company, and facilitate internaland external co-creation.
In the year since we began full-scale operation, many people with whom we had no previous
contact have come to the Open Innovation Hub. Our circle of potential co-creation partners is expanding,and many visitors have commented that they could see how committed we are to co-creation. As a
new initiative, we are also taking on the challenge of approaching co-creation opportunities based onaffinity between our visions. We are excited about the prospect of creating new value together with

Kikuno Yamamoto
Specialist, Business
Development Strategy
Planning Department

58

our various stakeholders. Please watch for future developments at the Open Innovation Hub.

Who we are

Where we are going

How we get there

Data

B-Innovation

Open Innovation Hub

Cafeteria

Materials and analysis lab

LoungeWorkspace

B-Mobility

Bridgestone 3.0 Journey 2023 Integrated Report59How we get there | Technology and Innovation

Three Forms of “Mastering” Driving Technology and Innovation
The Bridgestone Group is constantly reinforcing its three masteries—mastering rubber, mastering roadcontact, and mastering manufacturing—as the core of its technology and innovation.

1. Mastering Rubber

realize a digital twin mastering road contact, which will
enable real-time remote monitoring of tires on the market.

Rubber, the main material in tires, has a unique material
characteristic called “viscoelasticity”, and its complex nature
makes it extremely difficult to handle at development andmanufacturing sites. The Group has overcome these

3. Mastering Manufacturing: Green & Smart
Factoriesdifficulties by making full use of the overwhelming
experience and data accumulated by its experts in the field

In manufacturing, the Bridgestone Group aims to establish

over many years as a leader in the tire and rubber industry,

Green & Smart factories that are rooted in sustainability andand have created highly acclaimed Dan-Totsu products. By

the creation of new value by digitally connecting the entire

combining these strong “real” capabilities with “digital”

value chain.

capabilities and utilizing materials informatics, the Group isGreen Factories

driving the development of double network rubber, which
simultaneously realizes both fuel efficiency and durability.

To establish green factories, the Group is promoting the

From 2027, the Group aims to build this core technology

introduction of renewable energy (electricity) with plans to

into the Bridgestone MASTERCORE tires for off-the-roadattain a renewable energy (electricity) ratio of 50% globallymining vehicles that are the core of the “new premium”,

by 2023. Under Mid Term Business Plan (2024-2026), thewhere its effects can be maximized. The development ofGroup aims to achieve the electrification of energy sources

sustainable materials such as recyclable rubber will also

for manufacturing equipment, particularly by exploring andremain a priority.

implementing its unique process of electric curing. From Mid
Term Business Plan (2027-2029), the Group will promote
manufacturing that leverages methanation, a technology for

2. Mastering Road Contact

synthesizing methane from hydrogen and CO2, based on

The Group aims to further evolve its mastery of road contact

generated in plants, the Group can produce methane gas

by combining knowledge of the world’s roads, which hasthat can then be converted into energy, making it possible

been reinforced and expanded through global motorsports

to circulate energy within the plant. The Group plans toactivities, with digital technology.

implement this technology in four global model plants,

co-creation. By procuring hydrogen and recovering CO2

One example is the advanced design simulation that

thereby contributing to the realization of carbon neutrality.
The Group will also incorporate the use of recycled andcomes from combining structural CAE (computer aided
engineering) with our strong “real” capabilities. The Group has

renewable resources into its product strategy to realize aa vast amount of high-quality market and tire information. By

circular economy. By doing so, the Group aims to enhancecombining this information with structural CAE, advanced
design simulations can be done. It is possible to simulate thedeformation and contact behavior of tires not only on snow●

Green factories: Manufacturing Utilizing Methanation

and wet road surfaces, but also on soil and sand.

Converting CO2 Generated in Factories into Energy

Furthermore, by integrating it with other models, combined
simulation of tires and suspensions or tires and vehicles isalso possible. The Group’s Dan-Totsu tires for mining,
Bridgestone MASTERCORE and the “new premium” ENLITEN
were developed by combining strong real-world expertisewith advanced design simulation.
The Group will create digital twin simulations that can
reproduce tire usage conditions for each product market,
including road surfaces, based on strong real-world expertise
cultivated over many years. Toward 2030, the aim is to60

Hydrogenprocurement

H2methanation

H2

CO2

Produce tires
based on sustainableenergy source

Electricity

Steam

Generator

Boiler（generation of methane）

CH4

Who we are

Where we are going

How we get there

Mid Term Business Plan (2024-2026)

Masteringrubber■ Double network rubber:
Implement in MASTERCORE (OR*) 2nd stage■ Drive to develop sustainable materials

Realizing both fuel efficiency
and durability

Reinforce and utilize materials
informatics (start from 2010)

Masteringroad contact

Mid Term Business Plan (2027-2029)

Double network rubber

Cure less / Sulfur free rubber whicheasily recycle
Design sustainable multi-scale polymer
composite by managing, creating, andreturning chemical bonding

Precise polymer
Composite design

ConventionalrubberNetworkcomponent

Data

more
2.5 times
durable*OR: Off-the-road tires(vs. conventional ECOPIA material)

2030
Multi-scale composite design(from atoms to a tire for sustainability)

Tire advanced simulation based on contact mechanisms

Realize digital twin which can reproduce
tire conditions in market by incorporatingcomplex real road contact mechanisms andtire/vehicle transient characteristics*

Structural CAE

Strong “real”
based on market/
tire data

Reinforce and expand
from the knowledge
from F1® and motorsports

Combined simulation oftires & vehicles, etc.

Digital* Behavior before conditions become stable, such as force
generated in tires, deformation, etc.

Contact simulation onvarious road surfaces

2030
Digital twin through mastering road contact
to monitor tire in market on a real time basis

the recycled and renewable material ratio in Dan-Totsu

Group intends to implement this platform at eight global

products, and to realize sustainable manufacturing in whichmodel plants. Our aim is to create a next-generation

resources are continually circulated.

manufacturing platform that connects not only plants but theentire value chain, from upstream processes such as productSmart Factories

development and procurement to downstream processes
such as logistics and sales, in order to create new value.

In smart factories, the Group will implement automatic
control of the manufacturing process, which is one of theThrough these initiatives, the Group will strive tostrong “real” capabilities fostered through manufacturing

further enhance tire quality, boost labor productivity by

Dan-Totsu products. In 2023, the Group started automating

reinforcing suru-raku activities (streamlining operations),

each production process and is evolving and expanding its

and promote diversity, equity, and inclusion in the on-site

sensing technology cultivated through its unique, state-of-

workplace. The Group is accelerating the transformation of

the-art tire building system, EXAMATION.

its manufacturing in order to realize its vision of becoming asustainable solutions company.

In Mid Term Business Plan (2024-2026), the Group will
introduce digital, sensing, and AI control technologies todevelop a manufacturing platform in which all processes arelinked, and then in Mid Term Business Plan (2027-2029), the●Smart Factories: Next-Generation Manufacturing Platform (Vision)
Aspiration in 2030 Connect across the Value Chain and Create New Value (Next Generation Manufacturing Platform)
Mixing process(Kneading with rubber)

Product development/
procurement

Automation
technology+
Digital / sensing
technology and
AI control

Extruding/Cutting process
Automation
technology+
Digital / sensing
technology and
AI control

Building
process
Automation
technology+
Digital / sensing
technology and
AI control

Curingprocess
Automation
technology+
Digital / sensing
technology and
AI control

Inspection
process
Automation
technology+
Digital / sensing
technology and
AI control

Logistics/
Sales

Connect across factory process: Manufacturing digital platform – MES*
* Manufacturing Execution System

Bridgestone 3.0 Journey 2023 Integrated Report61How we get there

Talent Strategy
Bridgestone E8 Commitment

Empowerment

Talent Creativity Enhancement
The Bridgestone Group believes that its talent forms the foundation of all its corporate activities. To this end, theGroup is enhancing talent creativity and reinforcing a talent strategy aligned with its business strategy.

The Group’s talent strategy is based on the idea of providing

through the “Genba (on-site) 100-Day Challenge Program” inopportunities for diverse talent to shine through the spread

Japan. The program encourages employees to transform theirof individual success and confidence, while aiming tomindset and improve execution capabilities. In addition, toenhance corporate value through added value creation

expand the solutions business by enhancing “being attentivealigned with the business strategy. To transform to a resilientand supportive of customer problems”, the Group is“excellent” Bridgestone enhancing the talent creativity ofdeveloping talent who can empathize with an increasingly

each employee, the driving force behind this transformation,

diverse society and customers and solve issues. For this,is essential. Reinforcing talent investment leads to increasing

the Group is promoting DE&I to enable its diverse talent toadded value. As creating this virtuous cycle of value creation

shine. Specifically, in order to respect diverse values andis necessary, the Group will introduce “talent creativity” as apromote diversity in decision-making as an organization,

global management KPI from Mid Term Business Plan (2024-

the Group is increasingly focusing on promoting the2026) to measure the results of such initiatives, with 2023 as

development and assignment of female leaders, and ina trial year.

Japan, strengthening mid-career recruitment and retentionof highly specialized talent.

The Group’s Talent Development Policy

Regarding championing a “challenging spirit”, in the

The Group promotes talent development based on a talent

soft-robotics business, which is an exploratory business, instrategy aligned with its business strategy. The Bridgestone

addition to co-creation with external partners, the Group

DNA—“focus on quality”, “respect for being on-site”, “being

established a new corporate venture, “Softrobotics Ventures”.

attentive and supportive of customer problems”, andIt brings together diverse talent with an entrepreneurial spirit

championing a “challenging spirt”—are all essential in evolving

to create new business from scratch and is taking on theto a resilient “excellent” Bridgestone that transforms change“challenge” of early commercialization. In the digital field, theinto opportunity, unperturbed by continuous change while

Group is developing and acquiring advanced digital talentremaining robust and flexible like rubber, as set forth in the

globally, and also introduced the “Digital 100-Day Training” in2030 Long Term Strategic Aspiration. The Group is accelerating

Japan, covering a wide range of levels. With regard to thevarious initiatives to support the development of employees sodevelopment of management talent, the Group is drivingthat the growth of the Company and that of each employee go

intensive development through the “Bridgestone NEXT100”,

hand in hand.

a program to develop the next generation of management

Engagement surveys conducted in different regions

leaders by selecting approximately 100 talent globally eachfound “focus on quality” to be a strength shared Groupwide.

year to participate in various management and executive

The Group will continue to enhance initiatives to further

meetings as well as overseas business school training

develop “focus on quality” as the foundation of its businessprograms.

strategy. Regarding “respect for being on-site”, the Group is
encouraging employees to take on challenges on-site

Talentcreativity

62＝

Added value
Talent investment

Further challenge tocreate added value

Basic formula

Talentcreativity

Adjusted OP＝ Talent investment

Training and++ Welfare &(Laborcost development expense benefit expense)

Who we are

Where we are going

How we get there

Data

Specifically, in Japan, the Group has introduced a trainingInternal Workplace Environment Development
Policy for the Group’s Talent

program in Kurume, its place of founding, for newly appointed

Based on the belief that the success of diverse talent leads tomanagers and new employees that provides an opportunity to

the creation of value as expressed in the Bridgestone E8

further experience the founder’s thoughts, Bridgestone’s DNA,

Commitment, the Group has created a workplace environment

and the Bridgestone Essence (corporate philosophy). Also in

where each and every employee can play an active role.

Japan, in order to develop a foundation for diverse talent toPositioning the improvement of employee engagement as one

shine, the Group is implementing a variety of initiatives uniqueof the key issues in promoting global culture change in line

to Bridgestone, including DE&I management workshops for allwith the Bridgestone E8 Commitment, the Group has started

managerial positions and supporting the use of FemTech toto conduct monitoring through engagement surveys and shareaddress female-specific health issues using technology. At

best practices from each region. Starting from 2023, the Group

manufacturing sites, the Group is implementing investments

plans to implement a common engagement survey globally tothat reflect the opinions of workers on-site in a timely manner,enable the implementation of initiatives based on a common

and is working to enhance welfare, improve the workplaceframework while respecting regional differences in cultures

environment, and reduce workload.
 egional initiatives for DE&I are introduced later inRthis report.

and characteristics.

Soft-robotics Business
The soft-robotics business is taking on the challenge oforganization. The organization annually selects

supporting the lives of all individuals through the power

outstanding designs for industrial products worldwide.

of rubber based on Bridgestone’s DNA of “being attentive

This year, the competition received approximately 11,000

and supportive of customer problems” and championing a

entries from 56 countries and regions, and only 75 were“challenging spirit”. The Group is advancing theselected for the top award, the iF GOLD AWARD.

commercialization of soft-robotics based on co-creation
with external partners. Soft robots utilize artificial rubber
muscles that leverage the know-how gained from thedevelopment and production of tires and hoses and aredesigned to work alongside humans. The soft robot handconcept model “Dialogue” was developed by taking
advantage of the characteristics of artificial rubber
muscles such as their flexibility, impact resistance, lightweight, and high output. “Dialogue” was awarded the “iF
GOLD AWARD”, the highest award of the prestigious
international design award “iF DESIGN AWARD 2023”. The
iF DESIGN AWARD is sponsored by iF International Forum
Design GmbH, an international design promotion

Founding members of Softrobotics Ventures launched in collaboration withAscent Robotics Inc., Bridgestone’s capital and alliance partner

Softrobotics Ventures continues to create opportunities to pioneer new horizons
for soft robotics that can accompany and support people’s daily lives. I joined
the venture as a mid-career recruit in 2022, as I was captivated by the potentialof soft-robotics technology and keen to work with unique individuals who are
not afraid of challenges. In order to support the lives of individuals throughthe power of rubber, I am eager to expand the potential of robots throughnew perspectives.

Shoko Tezuka
Softrobotics Business Promotion Section, Softrobotics Ventures

Bridgestone 3.0 Journey 2023 Integrated Report63How we get there

Strategic Resources
Mid Term Business Plan (2021-2023) Progress
Update: Toward Becoming a “Strong”
Bridgestone Capable of Adapting to Change

investment between the premium tire business, solutions
business, sustainability, and talent.
In addition, in order to develop the Mid Term Business
Plan (2024-2026) further, we will determine businessIn Mid Term Business Plan (2021-2023), the Grouppotential for each business while taking profitability andallocated 280 billion JPY in strategic resources, centered

growth potential into account. The Group will allocate

on the premium tire business, from 2021 to 2022. The

strategic resources in business areas with a high potential

Group plans to allocate 290 billion JPY in strategic

for generating returns.

resources in 2023, ensuring a balance of resource

Mid Term Business Plan (2021-2023): Strategic Resources
2021 and 2022 results + 2023 plan

Inject approx. 570 B JPY level of strategic resources

M&A, CVC,
strategic partnership

Approx.

15%

Approx.

85%

Approx. 80 B JPY

Approx. 490 B JPY(2023: Approx. 20 B JPY)

(2023: Approx. 270 B JPY)

2021 Result
Approx.

64

Strategic investment &strategic expenses

140 B JPY

2022 Result
Approx.

140 B JPY

2023 Plan
Approx.

290 B JPY

Who we are

Where we are going

How we get there

Data

Financial Capital Strategy
Implementation of Strategic Resource Investment and Enhancement of
Shareholder Returns while Maintaining an Appropriate Financial Position

Overview of Fiscal 2022 Performanceallocation of strategic resources, thorough evaluations are
conducted using ROIC and other criteria, and hurdle rates

In fiscal 2022, the Group responded to a turbulent businessconsidering capital costs and risks by business and region

environment on a global scale through flexible and agile

are set. The Group is also strengthening the use of internal

supply management, sales expansion and share growth incarbon pricing and incorporating sustainability factors into

the premium segment, and bolstering strategic priceinvestment decisions.

management. Due to this and on the back of favorable

As a result of proper scrutiny and evaluations of

exchange rates, revenue reached the 4 trillion JPY mark forinvestments, ROIC improved from 9.0% in fiscal 2021 to

the first time ever. The Group was also able to achieve

9.4% in fiscal 2022.

significant growth in adjusted operating profit with 482.6

The Group’s basic policy regarding capital allocation isbillion JPY. This represents substantial increases in bothto secure necessary internal reserves for strategic resource

revenue and profit compared with fiscal 2021.

investment to create both social value and customer value
and gain a competitive advantage in line with the 2030
Long Term Strategic Aspiration roadmap, while aiming to

Fiscal 2023 Forecast“maintain an appropriate financial position” and “enhanceshareholder returns”.

The Group is forecasting revenue to increase 107% versus
previous year, excluding the impact of exchange rates, byenhancing focus on the premium segment in the premium

Maintaining an Appropriate Financial Position

tire business and accelerating growth in the solutions

We aim for a net debt-to-equity ratio of 0.3 or lower
and an equity ratio at the 60% level in considerationof balancing capital efficiency in order to maintaina healthy financial position and keep our 2022 credit
ratings of “A2” from Moody’s and “A” from Standard& Poor’s.

business. In fiscal 2023, the Group is targeting approximately
510 billion JPY in adjusted operating profit, a 116% increase
versus previous year, excluding the impact of exchange
rates, by focusing on execution and delivering results. It isalso projecting ROIC, its most important management KPI,
to reach 10.5% and the adjusted operating profit margin toreach 12.3%.

Foundation of the Financial Capital Strategy
The Group is strengthening the foundation of its financial
strategy to reinforce portfolio management. The Group
believes it is important to establish a framework supporting
strategic decision-making, which includes conducting
financial evaluations of each business portfolio andEnhancement of Shareholder Returns and Agile
Capital Management• Dividend policy: Increase dividends in a stable andcontinuous manner• Target dividend payout ratio: 40% (2022) → 50% level(2030)• Take a flexible approach to acquisition of treasury
stock based on a comprehensive review of internal
reserves needed for strategic resource investments
and financial soundness

withdrawing from businesses when deemed necessary.
In January 2021, the Group set up a global controller function

Going forward, the Group will continue striving toenabling global management of individual investments

boost corporate value by enhancing dialogue andso it can appropriately evaluate the effectiveness of eachengagement with investors and other stakeholders andinvestment. In addition, the establishment of the M&A

through proactive information disclosure.

Steering Committee, led by the Global CEO and with top
managements from each business and region as members,
has made it possible to discuss and rigorously evaluate
deals one by one and make speedy decisions. As for capital
investment, a committee led by the Global CFO has been
established to strengthen decision-making. For the

Bridgestone 3.0 Journey 2023 Integrated Report65How we get there

Intellectual Property Strategy
Creating Social Value and Corporate Value Through Intellectual Property
Translating Intellectual Property into Social
Value and Corporate ValueEnhancing IP Management
The Bridgestone Group aims to enhance IP management byfocusing on the following three policies.

The Bridgestone Group views intellectual property (IP) as
one of its key management resources and is working tostrengthen IP management toward becoming a resilient“excellent” Bridgestone by 2030. Through a management
method that visualizes and leverages IP, the Group is(1) Take a Holistic View of the Value Chain
	The Group promotes IP management by looking at theentire value chain—“produce and sell”, “use”, and“renewal” of tires to raw materials. This includes every
aspect from planning, development, and manufacturing

advancing IP management to directly contribute toestablishing business models with high certainty. This also
supports the enhancement of the Company’s competitive
advantage from both offensive and defensive perspectives.
In terms of offense, the Group is accelerating the utilizationof IP based on the concept of an IP mix. This IP mix aims toeffectively convert IP into social value and corporate value by
combining newly created IP with existing IP cultivated in thefoundational domain of “producing and selling” Dan-Totsu
products, which are considered Bridgestone’s “secretreceipe”. From a defensive standpoint, the Group is striving
to enhance its ability to identify and respond to risks byvisualizing IP in order to increase certainty when looking to
expand the premium tire business and the solutions businessand venture into exploratory businesses. In designing andbuilding the ideal IP mix, the Group makes use of IP
landscapes from two perspectives: an inward-looking IP
landscape where we analyze and reinforce mechanisms forconverting the Group’s IP to corporate value, and an outwardlooking IP landscape where we identify and visualize
opportunities and risks from an IP standpoint across theindustry and in each business.

to logistics, sales, and recycling. For example, the Groupidentifies and strengthens IP across the value chain byexamining how its competitive edge in logistics, an area
where differentiation through IP has traditionally beendifficult, can be linked to IP in development andmanufacturing.
(2) Modularize the IP Mix
	The Group identifies clusters or groups of IP assets
consisting of knowledge, know-how, and patents that are
distributed throughout the value chain. These IP clusters
are viewed as modules that can be leveraged to createsocial value and corporate value. The Group works tostrengthen and expand application of these modules sothat they can be utilized efficiently and strategically invarious solutions businesses.
(3) Generate IP by Working Closely with On-site Employees
	The Group communicates with on-site employees not
only in development and manufacturing but also in
logistics and sales and service to convert tacit knowledge
into formalized knowledge that contributes to businessvalue. This activity to design and build the IP mix form thefoundation of IP management.

1 Take a Holistic View of the Value Chain

2 Modularize the IP mix
Business model patents

Value chain

Planning

Development

Procurement

Manufacturing

SupplySales

ServicesModeldesignPerformance
evaluation

Inspection

Qualityassessment

Administration

Administration

Decisionmaking

Massproduction
designAdaption
to mass
production

Task
design

Sales
model

Systembuilding

Marketunderstanding

Basic
designEvaluation

ProcessdesignSCM
designModeldesignKnowledge

Knowledge

Knowledge

Knowledge

Knowledge

Knowledge

Quality assurance/service know-how

Corporate
value

Technical IP
Patent area

Confidential area

Engineering chain

Knowledge to be able to convert data (digital)
Knowledge/know-how of background (real)

3 Generate IP by working closely withon-site employees

Mass production

Market demand level
BreakthroughProduct
powerValley of Death
Important IP

Basic IP

Differentiated IP
To convert tacit knowledge
into formalized knowledge
through the process on-site

R&D time66

Who we are

Where we are goingVerifying Return on Investment Using ROIC

How we get there

DataIP Activity Case Study: Mining Solutions

The Group has incorporated the concept of ROIC, the most

The Group’s mining solutions provide an excellent example

important management KPI in Mid Term Business Planof a robust IP mix that has been developed and is functioning(2021-2023), into IP management. Specifically, the Groupto maximize the economic value of overall mining operations

sets results-driven KPIs that measure the contribution to

based on supporting nonstop vehicle operations andsales generated by leveraging IP and IP revenue as “IP

improving productivity. The IP mix is designed to support avalue”. In addition, the Group sets factor-oriented KPIs that

platform connecting the real and digital worlds, covering themeasure management efforts from both offensive andentire value chain of the mining solutions business. A vastdefensive perspectives. From an offensive standpoint, theamount of IP generated from our three mastery concepts

Group views the number of modules in an IP mix which are

has been integrated into the Dan-Totsu product Bridgestone

based on the three masteries in technology and innovation—

MASTERCORE, forming a foundation consisting of thousands

mastering rubber, mastering road contact, and masteringof patents and a wealth of knowledge and know-how.

manufacturing—which are considered our “secret recipe” asSitting above this foundation is the application layer

factor-oriented KPIs. These can include modules underconsisting of the group of patents covering durability,

development. From a defensive standpoint, the Group hastire wear prediction, etc., and a group of confidential IP

introduced the following as factor-oriented KPIs: the ability

supporting these patents. Moreover, there is a businessto secure business flexibility through identification of risks inmodel that brings together all the Group’s solutions including

advance while leveraging micro- and macro-IP landscapefor productivity, safety, and recycling. These three layers

capabilities from both inward-looking and outward-looking

make up the IP mix. Development, business, and IP divisions

perspectives; and avoidance of litigation and other IP-

work closely to design and build the IP mix as modules,

related issues. The basic formula for ROIC is used towhich ensures that IP is utilized in an efficient and strategic

calculate the Group’s ability to create IP value. The Groupmanner, including application to other businesses. The Groupalmost doubled this results-driven KPI in 2022 comparedis striving to expand application of the IP managementwith 2019 and aims to further improve it in 2023.

approach and techniques used in mining solutions to all
solutions businesses.

IP value

IP value creativity ＝Logistics

Sales

IP investments
Use/
Maintenanceservice

Manufacturing

Further offense and defense efforts to create IP Value[Offense][Defense]

Active IP visualizationand efficient/strategic
IP combinations(IP mix)

Risk mitigation by
IP visualization utilizing
IPL and reliable IP clearance

R&D

RepairUnique “real x digital” platform

Product
strategy●

Reuse

IP value creativity based on the basic formula for ROIC
Procurement*INDEX: 2019=100

183

RecycleApprox.190(Plan)

127
100

109

Business theme for IP mix:

10 themes

11 themes

14 themes(plan)

Number of IP mix(incl. under development):

22

22

25 (Plan)

2019

2021

2022

2023

2020

Bridgestone 3.0 Journey 2023 Integrated Report67How we get there

Response to Global Management Risk
Control of Global Management Risk: Remaining Unaffected as Change Becomes Commonplace
The business environment is becoming more complex andmanagement including the CEO and CRO of each regional

uncertainties are increasing. Under these conditions,business, conducts annual risk exercises to identify, evaluate,

companies are expected to maintain and reinforce theirverify, and formulate appropriate response strategies for theability to cope with the attendant risks and new businessmost critical risks, ensuring such response strategies alignopportunities. Bridgestone is stepping up its risk

with business strategies. The GMRC conducts wide-ranging

management programs, both globally and in each region,

discussions of management risk and has at present

to reinforce its ability to identify, evaluate, and mitigate or

established global project teams composed of the heads of

reduce important Group-wide risks. The Global Management

related organizations and members with expertise for three

Risk Committee (GMRC), which is composed of toppriority management items shown below.

Geopolitical Risk

The Bridgestone Group continuously monitors international tensions, political andeconomic situations, regulatory trends, and other factors that may disrupt business
operations and impact employees and business partners. The Group analyzes
business impact when risks materialize, and examines and executes measures tominimize that impact.

Tire and Road Wear
Particles (TRWP)As an industry leader, the Bridgestone Group is stepping up initiatives in collaboration
with the tire industry and other partners. Please refer to the statement below and the
Stakeholder Engagement section of this report.

Response to
Cyber Incidents

In response to a cyber incident at Bridgestone’s U.S. subsidiary in the first quarter of2022, the Group implemented emergency measures in each region. For ongoingstrengthening of its response capabilities, the Group established a global cybersecurity response team and is promoting fundamental countermeasures.

Project teams will be set up for each priority item to identify risk and implement countermeasures, with global executive teammembers as leaders. The Group will continue reinforcing its structure to control global management risk unaffected by change.

Corporate TRWP statement
Tire and road wear particles (TRWP) are the result of friction between the tire and the road surface which is essential to secure asafe and comfortable journey. TRWP is a complex issue impacted by many factors including driving behavior, weather, roadconditions as well as vehicle and tire characteristics. Bridgestone, as a sustainable solutions company, recognizes the need toaddress the potential human and environmental impact of TRWP and the role the company can play.
Bridgestone is actively engaged with the tire industry through the World Business Council for Sustainable Development(WBCSD) Tire Industry Project (TIP) in building scientific knowledge on the physical and chemical characteristics of TRWP in
addition to their impact. TIP is also involved in developing mitigation options. As member of Working Groups within theInternational Organization for Standardization (ISO) and through the discussions with the United Nations Economic Commission
for Europe (UNECE), the company supports the globally harmonized test methods that will contribute to reducing the amount ofwear particles from tire abrasion, while creating the same standards for all industry players.
Bridgestone continuously invests in sustainable technologies and materials to improve conflicting tire performance such asenergy consumption, grip, noise or wear. Furthermore, by providing solutions that promote responsible driving behavior andenable customers to check tire wear and optimize routes, we contribute to mitigate the emission of tire wear particles.
Guided by the Bridgestone E8 Commitment, the company continues to collaborate with industry and other partners to
study this issue and find answers. At the same time, we are committed to pursue innovations in tire design, materials andsolutions that can further reduce the generation of and potential environmental impact of tire wear particles.
Note: As of June 2023

68

Who we are

Where we are going

How we get there

Data

Highlights of ESG Activities
In Harmony with Nature………………………………………………………… 70–71
Climate and Nature-related Risk Management andResponses to TCFD and TNFD…………………………………………………… 72–73
Safety, Industrial Hygiene………………………………………………………… 74–75
Human Rights and Labor Practices…………………………………………… 76–78
DE&I……………………………………………………………………………………… 79–80
In Harmony with Communities……………………………………………81–83

Procurement ………………………………………………………………………… 84–85
Compliance, Fair Competition ………………………………………………… 86–87
Corporate Governance …………………………………………………………88–91
Board of Directors and Statutory Committee Activity Report ……… 92–101
Board of Directors and Executive Officers ……………………………………… 102
Stakeholder Engagement ……………………………………………………103–105

Bridgestone 3.0 Journey 2023 Integrated Report69How we get there |Highlights of ESG Activities

We, the Bridgestone Group, are committed to continually working towarda sustainable society with integrity and in unity with our employees,
customers, partners, communities and the world around us.
We introduce our approach and activities of being in harmony withEnvironment

nature, which are important for promoting our Sustainability Business Model,
and our responses to the Task Force on Climate-related Financial Disclosures(TCFD) and the Task Force on Nature-related Financial Disclosures (TNFD).
More information is available on the Company’s website.
	Sustainability > Environment
www.bridgestone.com/responsibilities/environment/index.html

In Harmony with Nature
In order to exist “in harmony with nature”, the Group has
continued to make comprehensive efforts to develop andutilize technologies that “value natural resources” while

Example of Minimizing Footprint:
Water Withdrawal Reduction Activities throughIn-house and Regional Cooperation

addressing the urgent matter of global warming throughefforts to “reduce CO2 emissions” based on the Environmental

The Group recognizes that water is an essential resource for

Mission Statement over many years. Becoming nature

the continuation of its business, and that it has apositive, the Group believes that a comprehensive approach

responsibility to use water in a sustainable manner. Basedand transformation that combines actions in various areas,on the Water Stewardship Policy

such as efficient use of resources, sustainable production,

equitable and sustainable water use, the Group aims toand climate change countermeasures, as well as naturedevelop and implement specific water stewardship plans byconservation are necessary. The Group will continue to2030 according to the environment in each local area,

evolve our Sustainability Business Model by incorporating

focusing on its manufacturing facilities located in water

the SBTs for Nature framework of “Avoid”, “Reduce”,

stress areas5. As of December 2022, 12 of the 17 sites“Restore and Regenerate” and “Transform”.

included in the scope of the policy had completed

The Group will strive to minimize the footprint of its
business activities by reducing water withdrawal in water
stress areas and reducing emissions to the air and water,while enhancing our contribution through conservation
and restoration of ecosystems based on the long-term
environmental vision of being “in balance with nature(Contribution > Footprint)” for 2050 and beyond, thereby

established in 2020 for

development of water stewardship plans.
5. M anufacturing facilities that have water-related risks due to their locations,with a particular emphasis on the risk of deterioration of fresh water
resources in terms of quantity and quality.

Water Stewardship Policy
www.bridgestone.com/responsibilities/environment/nature/footprint/pdf/water_stewardship_policy.pdf

Contribution to Water Conservation

contributing to realization of the vision of “living in harmony

To highlight a specific achievement, the Buenos Aires plantwith nature” of the Convention on Biological Diversity.

(BSAR), located in a water stress area in Argentina, reduced

In 2022, 148 initiatives1 related to the environment were
implemented in 19 countries, including 87 initiatives withexternal partners2, with the involvement of 4,902 employee

water withdrawal per unit of production by 44% in 2022
when compared to a 2005 baseline.
In 2019 the plant started a partnership with cement

volunteers3, and reached 25,972 people4 in those communities.

manufacturer Loma Negra. In this collaboration, the water

Notes: 1. Counting of “initiatives” varies by country or region.
2. Counting of “partners” varies by country or region.
3. The number of volunteer is the total number, including estimates forsome activities.
4. The number of people who directly benefited from the Group’s
activities, which varies by country and region

discarded from BSAR is reused as raw material in Loma
Negra’s cement production, resulting in a reduction in theoverall amount of water withdrawal. Through this initiative,
BSAR had supplied a cumulative total of 35,000 m3 of waterby the end of 2022. BSAR is not only working on plantrelated projects, but also on initiatives that contribute towater conservation in the Llavallol district of Buenos Aires.
They will continue promoting projects to contribute to
reducing water withdrawal in the region.

70

Who we are

Where we are going

Example of Enhancing Contributions: Programfor Promoting Biodiversity

How we get thereDataof native to South East Asia, covering 21,600 m2, engaged
2,680 people in the community and 200 colleagues. These
trees are estimated to sequester 349 tons of CO2 over their

The Group is working to implement ecosystem conservation

lifespan (in total).

and restoration activities at its manufacturing sites aroundthe world to help ensure a healthy environment for current
and future generations.
By contributing to the conservation and restoration offlora, fauna and their habitats, and by collaborating with

The Woodlawn Wildlife Area
In the United States, the Woodlawn Wildlife Area is a habitaton a former landfill site in rural Cecil County, Maryland.
Bridgestone has been maintaining the site as a wildlife

various stakeholders, the Group is committed to preserving

habitat since the early 2000s. The property features a mix ofthe environment for future generations, as stated in the

woodlands, grasslands and wetlands.

“Ecology” value of the “Bridgestone E8 Commitment”.

The team manages about 50 acres of forest dedicated

The Group operates approximately 1306 manufacturingsolely to wildlife (there is no timber harvesting), in accordancesites and R&D facilities and conducts business in more thanwith the Maryland Department of Natural Resources Forest

150 countries. At its sites around the world, the Group aims

Stewardship Program. Students and community volunteers

to promote biodiversity conservation activities that areare involved in invasive plant removal. A vernal pond wasrooted in each local community. By doing so, the Groupbuilt in the forest to support amphibious creatures, andconveys the importance of biodiversity externally andforest monitoring includes evaluating tree health. In 2001,

internally, leading to further contributions. It also uses its

a set of native grassland plants were planted to support

wide-ranging internal network to share information on its

the sustainability of grassland species. The grassland has

biodiversity program and other activities.

maintained periodically by mowing, reassessing seeding

6. As of September 22, 2022

needs and treating non-native invasive plants. Monitoring of
the grassland includes tracking usage of nest boxes installed

Tree Planting
Nestled in Saraburi Province, our colleagues from the Nongon-site for cavity-nesting birds.
The site is open to visitors and has a walking trail with

Khea branch of Thai Bridgestone Co., Ltd. (TBSC) took on an

information signage and benches. The trail helps toambitious task to “greenify” their environment.

encourage observation and educates guests about theThrough comprehensive stakeholder engagement with theecosystems and wildlife in the area.

community, local government and even Bridgestone’s
customers, the team set out to achieve our collective
aspiration to increase green space in and outside our TBSC
Nong Khae plant, to create greater harmony with nature.
The team collaborated with stakeholders to establish a
program that engages school children and the community.
The program promotes activities for learning andcaring about the environment, planting and the importanceof biodiversity, waste reduction where possible, as well as
for planting more trees of native to South East Asia, Since its
inception back in 2013, the program has planted 5,400 trees
Wildlife protection activities

Planting trees

Bridgestone 3.0 Journey 2023 Integrated Report71How we get there |Highlights of ESG Activities

Environment

Climate and Nature-related Risk Management and Responses
to TCFD and TNFD
The Bridgestone Group supports the Task Force on Climate-opportunities associated with climate change and the loss

related Financial Disclosures (TCFD). Furthermore, the Groupof natural capital, reflecting these in business strategy.

began participating in the Task Force on Nature-related
Financial Disclosures (TNFD) Forum in March 2022.
As the world becomes increasingly concerned aboutclimate change and the loss of natural capital, there is a

Status of Adoption of TCFD and TNFD
Recommended Disclosures

growing movement towards a decarbonized society, as
exemplified by the Paris Agreement. Additionally, efforts to

The following index shows the Group’s disclosures onachieve a nature-positive world, as outlined in the Kunming-

recommendations of the Task Force on Climate-related

Montreal Global Biodiversity Framework, are gaining momentum.

Financial Disclosure (TCFD) and the Task Force on Nature-

In this context, the Group is working to comprehensively

related Financial Disclosures (TNFD) ß version v0.4.

assess and manage its dependency and impact on the
climate and natural capital, as well as the risks andGovernance
Recommended Disclosures

Status of the Group’s Response

TCFD

TNFD

Board of Directors’ oversight ofdependencies, impacts, risks
and opportunities• The Board of Directors receive and review regular reports on the status of sustainability initiatives,
including achieving carbon neutrality, contributing to a circular economy and progress toward being inharmony with nature.

Management’s role in assessing
and managing dependencies,
impacts, risks and opportunities• The Global Executive Committee (Global EXCO), the highest level of corporate management, approves andmanages the progress of mid- to long term strategies, targets and action plans, including achievingcarbon neutrality, contributing to a circular economy and progress toward being in harmony with nature.

Strategy
Recommended Disclosures

Status of the Group’s Response

TCFD

TNFD

Dependencies on climate and natural capital*• Dependency on nature’s provision of water and biomass in the raw material procurement stage as well
as climate and healthy soil maintenance and regulating services provided by ecosystems.
• Dependency on nature’s provision of water in the tire production stage.

Dependencies, impacts, risks
and opportunities over the
short-, medium-, and long-term

Impact on businesses, strategy,
and financial planningImpacts on climate and natural capital*• Impact of land use in the raw material procurement stage.
• Impact of water resource usage and waste generation in the tire production stage.
• Impact of greenhouse gas emissions, water resource usage, emissions to air, water and soil and waste
generation throughout the value chain.
Physical risks and opportunities related to climate change and loss of natural capital• Risks of stronger typhoons and increased frequency of flooding and drought, which pose the risk ofinterrupting business activities.
• Risks related to the procurement of raw materials as a result of changing rainfall patterns leading topoor harvesting of natural rubber.
• Risk of lower demand for winter tires due to reduced snowfalls.
• Opportunities to commercialize natural rubber derived from guayule, which grows in arid regions. Risks
due to poor harvesting of natural rubber derived from Para rubber trees, which are found predominantly
in tropical regions.
Risks and opportunities related to the transition to a decarbonized society and a society inharmony with nature• Risk of adverse effects on operating results and financial position, such as limitations on businessactivities and increased costs, if R&D expenses required to meet the rapidly changing needs of society
and customers do not produce sufficient results when systems and regulations to combat climatechange and loss of natural capital are introduced (for example, carbon taxes, CO2 emission reduction
obligations and emissions trading systems, and systems and regulations related to low-fuelconsumption performance of tires, recycling used tires, water withdrawal and sustainable natural
rubber, etc.).
•O pportunities associated with changes in competitive factors due to changes in mobility needs (forexample, increased demand for tires for electric vehicles, increased demand for tires and solutions that
help customers reduce CO2 emissions).
• Opportunities to commercialize the recycling business resulting from increased regulation around therecycling of used tires.
* This refers to the main areas of dependency and impact throughout the value chain of the tire business that were evaluated aseither “very high” or “high” in importance by the UN Environment Programme World Conservation Monitoring Centre(UNEP-WCMC) and industrial groups using ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure).

72

Who we are

Where we are going

How we get there

Data

Resilience of the organization’s
strategy, taking into considerationdifferent scenarios• The Group assesses risks and opportunities based on multiple climate- and nature-related scenarios. It
has already begun to address those important risks and opportunities identified and will continue to do
so on a regular basis.

Locations applicable to direct
operations, upstream anddownstream• Expand CO2 absorption and fixation throughafforestation of degraded land

• Locations with high integrity
ecosystems and/or areas ofdecline in integrity• Areas where biodiversity is ofhigh importance• Water stress areas• Areas where the organization is
likely to have significant potential
dependencies and/or impacts• The Group regularly evaluates production sites
located in water stress areas with a risk ofdeclining water resources in terms of quantityand quality. As of the end of 2022, nine sites inIndia, Indonesia, China and other countries werelocated in river basins assessed as having“extremely high water risk.” A water stewardshipplan has been formulated and is being
implemented at all these sites based on thewater situation is each location.

(TNFD recommended disclosure)Management of Risks and Opportunities
Recommended Disclosures
Identification and assessment
process of dependencies,
impacts, risks and opportunities
in direct operations andupstream and downstream
value chain
Management process
Integration into theorganization’s overallrisk management

Status of the Group’s Response

TCFD

TNFD

• The Group strives to comprehensively and appropriately identify and address risks and opportunities
across its operation while considering the business scale and characteristics of each Group company.
The Group identifies risks and opportunities associated with climate and natural capital by considering
dependency and impact throughout the value chain based on evaluations from ENCORE by UNEP-WCMC
and others and the Business & Biodiversity Interrelationship Map® released by Japan Business Initiative
for Biodiversity (JBIB).
• The Group is currently assessing ways to improve its management of business strategy risks andopportunities directly related to the execution of the Mid- to Long Term Business Strategy by setting up
a dedicated annual risk management process under the direct leadership of the Global EXCO, while
operational risks related to day-to-day operations are overseen by the Chief Risk Officer (CRO), who is
responsible for overall risk management and formulating risk response plans.
• Identifying potential risks faced by each region and the Group as a whole on an annual basis; clarifying
ownership for those risks not only for the Group as a whole, but also for each business, SBU anddivision; and implementing risk management in an autonomous and continuous manner.
• The Group collaborates with the World Wildlife
Fund (WWF) to strengthen sustainable natural
rubber production and help build the capacity ofsmallholder farmers. On-site ESG audits are
conducted for suppliers, including smallholders,using a self-assessment questionnaire developedin conjunction with WWF, and risks are evaluated.

Engagement with affectedstakeholders in assessment andmanagement (TNFD recommended
disclosure)

Metrics and Targets
Recommended Disclosures
Metrics used in the assessmentand management of risks andopportunities

Metrics used in the assessmentand management ofdependencies and impacts

Targets and performance inmetrics used in the managementof dependencies, impacts, risks
and opportunities

Status of the Group’s Response

TCFD

TNFD

• Establishing targets and regularly monitoring CO2
emissions (CO2 emissions reduction in Scope 1, 2,
and 3, and the reduction contribution of CO2
emissions throughout the lifecycle and value
chain of the Group’s products and services) as
one of the metrics for assessing and managing
climate-related risks and opportunities.
• The Group evaluates the cost of CO2 emission($100/tCO2) and the effect of reductions based oninternal carbon pricing in order to assess the risks
and opportunities associated with an investment.

• The Group sets water withdrawal in water stressareas, environmental footprint (amount of
hazardous/non-hazardous waste and landfill,
VOC emissions, SOx/NOx emissions) as metrics inthe assessment and management of naturerelated risks, opportunities and impacts andregularly monitors status).

• Setting long term environmental vision (2050 and beyond) and mid term target (2030) to achievecarbon neutrality, contribute to a circular economy and achieve being in harmony with nature;evaluating and disclosing performance every year.

Bridgestone 3.0 Journey 2023 Integrated Report73How we get there |Highlights of ESG Activities

While proactively responding to the expectations of society andstakeholders, we are promoting various initiatives with the aim ofcreating a society that is safe, secure, and ensures accessibility anddignity for all.

Social

We introduce the activities of our employees and partners who are
working to create value along with their voices.

More information is available on the Company’s website.
	Sustainability > Socialwww.bridgestone.com/responsibilities/social/index.html

Safety, Industrial Hygiene
Our Safety Mission Statement is “Safety First, Always.” At
Bridgestone, the Group makes safety a business value andAndrea Colussi

believes that creating a safe working place for all is everyone’s

Director
Environment,
Health & Safety
Bridgestone EMIA

responsibility. The Group promotes safety activities
throughout the value chain.
The Bridgestone Safety Mission Statement applies
equally to employees, contractors and visitors to our

The Fundamental Area Safety Group, is aimed at guiding

facilities. In all workplaces Bridgestone Group operates

the Bridgestone corporation toward “Perfect Safety” acrossaround the world, the Safety Mission Statement is
prominently displayed for all to see. Together with thedisplay, the Group maintains programs to ensure all
employees embody the Safety Mission Statement.

all business domains as one of Bridgestone’s commitments
to develop a sustainable business, protecting the safety ofour teammates while contributing to reinforce the safety
culture of all stakeholders. As the world is changing andthe business is evolving, we must assess and mitigate
health and safety risks while building the stronger culturethat crystalizes our foundation principles in spite ofany adversity.
To the purpose of establishing strong foundations,
we are striving to deploy the global management system
and reinforce the capabilities of employees to drive safe
behaviors while leveraging new technologies, promoting
digital transition and facilitating an effective and efficient
PDCA cycle.
Our Safety Mission Statement and the “Bridgestone E8
Commitment” are guide us and inspire all employees toplay an active role in building the strong safety culture that
supports all of us in achieving a sustainable future.

This mission serves as a blueprint for protecting the74

 raining Instructors Familiar with “BridgestoneT
Safety Fundamental Activities”

health and safety of the Group’s employees and contractors.

The Group implements “Bridgestone safety fundamental

These standards must continue to evolve as the Group

activities” at all the work sites. These activities

continuously learns from experience, while ergonomic risks

stipulate basic safety practices: the 3S (seiri, seiton and seiso

increase with the aging of populations, as regulations change,

meaning select and remove, sort, and keep clean); KY (kiken

as machinery and equipment ages and as new technologies

yochi meaning preempting hazards); RA (risk assessment); andare progressively introduced at our sites. The Group is also

Safety Rules (including compliance with standards). All theseproactively promoting the highest levels of safety culture

basic safety practices are conducted uniformly at all work sites

within the new businesses it develops or acquires.

and by all employees as ongoing initiatives.

Who we are

Where we are going

In 2022, all approx.140,000 of Bridgestone Group

How we get there

Data

3. Safety maturity assessment implementation rate

employees received additional safety training and 83 instructors

The Group conducted safety maturity assessments towere trained to promote the safety fundamental activities.

identify common global issues, confirm the effectivenessNot only sharing “safety activity standards”, which definesof the PDCA cycle on safety activities and make surespecific actions to take to proceed with the implementation,

continuous improvement activities are being implemented.

but also assigning instructors who have thorough knowledge

Assessments started at production sites from 2022 withof “Bridgestone’s safety fundamental activities” to each work

the goal of completing assessments at all production sites

site to develop and execute uniform safety activities at all thework sites.

by 2024.
		

The Group also conducts level-based safety education
for managers and supervisors at each work site.

The Group is also preparing for implementation

at non-production facilities such as logistics sites andretail shops.

 022 KPIs Monitoring of Safety and Industrial
2
HygieneTo track progress toward the “Perfect safety workplace”
outlined in the Safety Mission Statement, the Group annually
evaluates its safety performance and monitors global best

4. Creation of global safety standards
The 39 standards that were targeted for implementation
have been released for introduction. The Group is monitoring
the status of global standard deployment.
		

The Group has also established a global safety

practices. The overall goal is to achieve the best results in the

management system in conformance with ISO 45001 andindustry. Since 2022, the Group has established four KPIs andnational standards/regulations and other establishedmonitors the results annually as follows.

global standards. As of March 2023, 50 manufacturing
plants have obtained ISO 45001 certification (46% of a

1. Lost-time injuries frequency rate (LTIFR)1, Serious injury

total 110 plants).

rate (SIR)2, Occupational illness frequency rate (OIFR)3
2023 Targets

(

LTIFR

SIR

OIFR

Initiatives for Continuous Improvement
To further advance its safety culture, in August 2021 theEmployees andtemporary staff

2.6（2.74） 0.05
（0.08） 0.33
（0.68）

Group began focusing on uniform implementation of safety

Contractors

1.7（0.62）

safety requirements for equipment were added for smarter

0.15（0.06）—): As of the end of 2022

The Group’s safety-related data in bold is verified bymeasures for 12 specific machines/equipment. In 2022,
factories, as accelerate our transformation in manufacturing
toward becoming a sustainable solutions company byapplying global standards to machinery and equipment andSOCOTEC Certification Japan, a third-party organization,

actively introducing new technologies that incorporate

to ensure the accuracy and transparency of this data.

digital, sensing, and AI control.
In addition, the assessment results like safety maturity

2. The risk-assessment implementation rateassessment will yield strengths that can be best leveraged

The Group conducts risk assessments to ensure theglobally, and points needing improvement that can beoverall safety of new operations, projects and equipment,

addressed to continue to enhance safety culture.

and sets targets for equipment safety. The risk-assessment

Finally, safety training is offered locally at every

implementation rate, a KPI introduced in 2019, measures

Bridgestone location based on its legal requirements and thecompletion of each year’s evaluation plan. The Group’sGroup’s own standards to raise safety awareness and cultivate

target is 100%, and the 2022 result was 97%*4 (as ofknowledge to create a safe workplace.

December 31, 2022).
Notes: 1. LTIFR = (Number of lost-time injuries ÷ Total working hours) x
1,000,000
2. SIR = (Number of serious injuries ÷ Total working hours) x 1,000,000
3. OIFR = (Number of occupational illness/total working hours) x
1,000,000
4. A total of 5,560 pieces of equipment were targeted for the risk
evaluation/5,420 pieces of equipment were assessed.

Bridgestone 3.0 Journey 2023 Integrated Report75How we get there |Highlights of ESG Activities

SocialHuman Rights and Labor Practices
The Group will foster an inclusive culture in which all

The Global Human Rights Policy is endorsed by the Global

Bridgestone entities and locations adopt and apply ethicalExecutive Committee (Global EXCO) and signed by the Global

labor practices, build trust with employees, and fulfill our

CEO as it demonstrates the Group’s universal and consistent

responsibility to respect diversity and human rights.

commitment to respecting the internationally recognizedAs part of its dedication to being a true global leader in all

human rights principles laid out in the aforementionedthat it does, the Group is committed to respecting humaninternational standards.

rights and advancing responsible labor practices throughout

This mission is important to the Group as stakeholders
and society increasingly hold businesses, and especially

its worldwide operations.
This commitment is the right thing to do and consistentlarge global organizations, accountable for their specificwith the Group’s vision of providing social and customer value

human rights commitments and actions. The Group

as a sustainable solutions company. It is also fundamental toproactively incorporates human rights initiatives into its

fulfilling the “Bridgestone E8 Commitment” (one of the values

business models and across its value chains, priorities,of which is “Empowerment”), by contributing to a society thatmanagement policies, and business strategies. With these

ensures accessibility and dignity for all. To achieve this aim,

actions, the Group is creating social and customer value and

the Group is committed to working collaboratively withbuilding trust with stakeholders.

stakeholders, including affected and potentially affectedGlobal Human Rights Policy

groups, to address and remedy adverse impacts from its

www.bridgestone.com/responsibilities/social/human_rights/pdf/global_human_rights_policy.pdf

operations, products or services.

Jason Fisher
Chief Human Resources Officer
Bridgestone Americas, Inc.

The Human Rights & Labor Practices Working Group is
an exceptionally dedicated and collaborative global teamof internal professionals with significant experience inhuman rights, labor relations, compensation and benefits,
and human resources compliance, supplemented byexternal experts from partner organizations. Our humanrights and labor practices processes also engage local
employees and leaders through “genba” with on-siteand virtual assessments, facilitating a balanced “glocal”
approach for advancing human rights and responsible
labor practices that we believe is most effective fordelivering on our commitments to our employees andother stakeholders. It is a true honor to work with this

The Group’s Global Human Rights Policy

guides theorganization as it commits to respect and support the UN
Guiding Principles for Business and Human Rights (UNGPs) as
well as the human rights set out in the International Bill of
Human Rights (IBHR) and the International Labor Organization’s
Declaration on Fundamental Principles and Rights at Workthrough interactions with employees, consumers, customers,
suppliers, contractors and community members wherever it
conducts business.

76

team to help ensure a safe, supportive, and inclusive
workplace in all Bridgestone locations and to move
Bridgestone forward on its sustainability journey.

Who we are

Where we are going2022 Risk Assessment

How we get there

Data

assessed in-depth, 2) confirm there were no incidents ofchild labor or forced labor among its own operations, and 3)

In 2022, the Group conducted the following two types ofidentify key areas to improve and reinforce in its managementhuman rights risk assessment in cooperation with a third-

system to minimize human rights risks across its operations.

party expert, Business for Social Responsibility™ (BSR), a
leading global organization on sustainability.

The assessment process also significantly strengthened
the global human rights management system and enabled
the Group to foster significant stakeholder engagement on Deep-dive Investigation into the Salient Issues
A
Identified at the Prioritized Locations Based on
the 2021 Evaluation Results

the topic of human rights, including developing partnerships
with external third-party partners (BSR), facilitating strategic
conversations and actions among the Group’s global teams,

In the process of strengthening its human rights due

and directly engaging with frontline employees to include thediligence system, the Group identified salient human rights

voice of local employees in the due diligence process. Basedrisks across its global operations through two different riskon the progress and improvements of its human rights due

evaluations conducted by independent third-party

diligence processes, the Group received recognition withorganizations in 2021. These evaluations incorporated

significantly enhanced evaluations by external indices. Basedexternal industry and geographic human-rights risk data,on the results of the 2022 assessments and the existingalong with the Group’s management systems, policies andglobal network for its human rights due diligence process, thepractices, to give a holistic picture of key industrial,

Group will establish and implement mitigation measuresgeographical, and operational risks to which its businesstargeting its own operations in 2023.

should pay particular attention based on the location andnature of operations conducted at its facilities.
Based on the results of these two external evaluations,
the Group has identified salient human rights risks: working
hours, nondiscrimination and equal opportunity, workplaceharassment, forced labor, child labor, and occupational
health and safety. These are the human rights domains that
the Group believes, based on a combination of geographical,
regulatory, industrial and operational factors, require thehighest priority across its operations and are the primary
focus of the human rights due diligence process at its own
operational sites. In addition, the results of these evaluations
led the Group to prioritize locations and develop data-driven
plans for human rights risk assessments in its operational

Assessment in Liberiasites, which were completed in 2022.

 Human Rights Risk Assessment Survey (HRRAS),A
Covering Its Own Operations across the GlobeThe Group’s goals established for 2022 were to conduct
Human Rights Risk Assessment Surveys (HRRAS) for 80% of
the Group’s operational sites by the end of 2022 and, basedon the outcome of the assessments, ensure mitigationplans are in place for 100% of any identified risks by 2023.
The Group surpassed its 2022 goal by conducting
HRRAS covering 100% of its operational sites, and there
were no material risks identified from this process.
From the two types of human rights risk assessment
which were Risk Assessment Survey and In-depth Risk
Assessment, the Group was able to 1) verify that there were
no human rights violations at the three representative sites

Bridgestone 3.0 Journey 2023 Integrated Report77How we get there |Highlights of ESG Activities

SocialHuman Rights and Labor Practices

2023 Plan

the Group will conduct further in-depth human rights risk
assessments at representative sites and launch an expanded

In 2023, the Group will further improve and reinforce the

Human Rights Risk Assessment Survey (HRRAS) across its

human rights risk management system, while at the same

global operational sites in 2023.

time continuing to assess and monitor human rights risks
through its human rights due diligence process.
Based on the 2022 assessment results, the Group will

management level, striving to meet international humanplan and implement mitigation measures across its own

rights standards while simultaneously taking a data-driven

global operations to further minimize human rights risk andand risk-based approach to identify and address its priorities

impacts in its operations. As the 2022 assessments did notbased on the global landscape and the nature of its operations.

identify any human rights violations, the Group will focus
on the areas for improvement to further strengthen its
prevention measures for the most broadly assessed humanrights risk domains (child labor and forced labor) in 2023.
Specifically, the Group developed an Implementation
Guideline for the Global Human Rights Policy to ensure its
Global Human Rights Policy commitments, stance, andstandards include specific and actionable steps the Group’s
operations can implement in day-to-day activities to achieve
its goals.
The Guideline (version 1.0) was developed and will be
distributed covering 100% of its operational sites in 2023.
It will focus on prevention of child labor and forced labor, andwill evolve in tandem with the Group’s human rights due
diligence processes and advancement of the internationallyrecognized human rights principles.
In addition, as part of the Group’s continued
implementation of human rights due diligence processes,

78

As described above, the Group will take a multi-point
and step-by-step approach to enhance the human rights risk

Who we are

Where we are going

How we get there

Data

DE&I
Since its founding in 1931, the Group has a history of valuing
diverse talent and perspectives and has continued to expand
the diversity of its global workforce and operations throughextension into new markets and acquisitions such as theFirestone Tire & Rubber Company (based in the U.S.) in 1988.

Thierry Jakircevic

The Group believes that diversity will become increasingly

Director of Digital Solution Platform
Planning & Development Div.
at Bridgestone Corporation

important as the Group grows toward its vision: “Toward
2050, Bridgestone continues to provide social value andcustomer value as a sustainable solutions company.” Setting
the “Bridgestone E8 Commitment” as the focus and vector of
our corporate activities and inheriting Bridgestone’s DNA, theThe collaboration with our new teammates at Webfleet
Solutions (WFS) occurred almost immediately after theacquisition as we were able to quickly identify andGroup accelerates developing various opportunities forbegin collaboration on a number of exciting projects.

diverse talents to shine.

This pragmatic has allowed us to learn and understand

The Group’s Global Human Rights Policy

also includes

the management practices, and working norms at

respect for DE&I as a key element. Addition of the term

both companies, rapidly building alignment and“equity” to the revised policy highlights the Group’s approachcultural cohesion.

of providing equitable opportunities for all people to reachTeammates across many different geographies andtheir full potential, based on respect for diversity, teamwork,

cultures have been actively working as one teamand respect.

since then.

Fusion of Corporate Cultures
In 2019, the Group acquired Webfleet Solutions (formerly
TomTom Telematics), a leading digital fleet solutions

This culture merge has also been a unique opportunity
to mature and industrialize our digital operating model,
learning from the many years of experience of WFS at
delivering digital solutions and value to customers at
scale. This combination of diverse talents and expertiseprovider in Europe, and the Group is working to increase

boosts our present and future ability to generate greater

its competitiveness in the fleet solutions business. Whileinsights for our core tire business and solutions business.

sharing the Bridgestone DNA, the Group will incorporate theculture and diverse values of acquired companies, tying theminto value creation.

Introducing a FemTech Program

employees but all employees correctly understand and learn
the facts about these circumstances, the Company introduced

Bridgestone recognizes that there is a gap in the ratio ofa FemTech program to address women-specific health issues

female employees and female managers* in Japan comparedusing technology on a trial basis in the Kodaira area of Tokyo

to its overseas locations. Therefore, the Company is focusingfrom 2022. This program includes seminars for all employees

its efforts on stronger recruitment of female employees andto understand women-specific health issues, and efforts toretaining and empowering them by their work-life balance.

harness technology to solve these issues. It has been rolled

Furthermore, the Company is focusing on appointing moreout to the entire Company in 2023. Through these efforts, thefemale managers.

Company will continue to develop facilitative andMutual understanding is especially important for thevarious health issues women face at different life stages,
which have in some circumstances inhibited their performanceempowering work environments.
*F emale managers at the Company refers to line managers (at executive andmanagement levels), specialists and coordinators.

and career development. In order to ensure not only female

Bridgestone 3.0 Journey 2023 Integrated Report79How we get there |Highlights of ESG Activities

SocialDE&I

International Women’s Day (IWD)

sustainable solutions company and aligns with the

Bridgestone Asia Pacific (BSCAP) has been commemorating“Bridgestone E8 Commitment”, an effort that focuses on

International Women’s Day (IWD) since 2019 and advocating

Bridgestone’s greatest challenges and opportunities relating

it annually through a more structured and consistentto equity and inclusion, sustainable mobility, environmental

approach across the 10 countries of BSCAP. It has launchedpreservation and more.

its guidelines for Group companies to promote thecelebration of women’s empowerment and achievements
and to showcase its on-going commitment to women’sequality. BSCAP’s annual participation in IWD, which is
supported globally by industry, governments, educational
institutions, and community groups to recognize the social,economic, cultural and political achievements of women, is

Ebonee Davis Ifeobu

part of the mission to raise awareness on women’sVice President of DE&I at
Bridgestone Americas, Inc.

challenges and to help forge a gender-equal world.
In Bridgestone where our Code of Conduct underpins
the value of diversity, the Group is guided by ourcommitment to building an inclusive culture where
everyone is entitled to equal opportunity regardless ofbackground and where the Group comes from. Each BSCAPAt Bridgestone, we are committed to cultivating an
inclusive culture that is as diverse as the world weserve. Nashville’s Pride Festival seamlessly aligns with
Bridgestone’s mission to embrace individuality andinspire people to be their truest selves, inside andemployee can make a difference within our sphere ofoutside company walls. We are excited to once again

influence by taking concrete action to be more inclusive in

be a part of this uplifting movement that promotes

their work.

diversity within our community, further strengthening
the vibrant city we work and live in.

 ulti-nationalization and Providing Equal Career
M
Opportunities
Bridgestone Europe, Russia, Middle East, India and Africa(BSEMIA) has achieved a high level of cultural diversity. This
IWD promotional poster featuring BSCAP employees.

is the result of decisions made by management over the lasteight years to build an international business run by local

Nashville Pride Festival

As a result, nearly all nationalities from the region aresponsor of the annual Nashville Pride Festival for over ten

represented in BSEMIA’s headquarters and across its many

years. The Nashville Pride Festival is Tennessee’s largest

geographies.

LGBTQIA+ festival and works to increase awareness for theWorkstreams in the area of awareness andequal rights for lesbian, gay, bisexual and transgender people

communication, talent acquisition, talent management,

and families. The annual celebration brings together

training and development and benefits have furthermore

thousands of individuals from diverse backgrounds andstrengthened BSEMIA’s DE&I efforts and have led to increased

sheds light on the history, culture and lives of the LGBTQIA+

visibility and career opportunities for underrepresented groups.

community.
Recently, BSAM launched its expanded DE&I Centerof Excellence (COE) and its “Free to Be” initiative thatemphasizes the strength in diversity and encourages
teammates to bring their whole selves to work. The
expansion is part of Bridgestone’s transformation into a80

experts, regardless of their nationality or cultural background.

Bridgestone Americas, Inc. (BSAM) will serve as the presentingWho we are

Where we are going

How we get there

Data

In Harmony with Communities
As a global organization with operations in more than 150

expanding the eight Bridgestone-like values starting with thecountries, the Bridgestone Group is uniquely positioned toletter “E” in the “Bridgestone E8 Commitment” including

co-create long-term social and customer value in communities“Empowerment: Contributing to a society that ensuresaround the world. It does so by working collaboratively

accessibility and dignity for all.” The Group builds safer,with various stakeholders such as partners, customers andhealthier communities and makes education more accessible

employees to develop sustainable community solutions thatand inclusive for current and future generations. In addition, a

positively impact a wide variety of cultures and address theworking group that engages in social contribution activities

unique challenges they face. In addition to these long-term

within the Group issued the Global Social Contribution Activity

efforts, when urgent support is essential — for example, in

Guidelines in 2022 to expand the positive impact oftimes of disaster — the Group steps up to immediately

Bridgestone’s social action programs.

support communities in need.

* In order to evolve into a sustainable solutions company, the Group has
systematized the Group’s approach to sustainability

Supporting communities is part of the Sustainability
Framework*that the Group uses to build the trust that

propagates value co-creation. Through these social
contribution activities

in accordance with their purpose andcommunity needs, the Group is committed to creating and●Sustainability Framework
www.bridgestone.com/responsibilities/approach/framework/

Social contribution activities
www.bridgestone.com/responsibilities/social/community/index.html

2022 Highlights: Social Contribution

Number of countries

40

Total numberof initiatives

1,009

Number of
initiatives withexternal partners

664

Number of participants• Employee
volunteers

17,282• Community
beneficiaries

272,577

Activities Related to Road Safety
More than 1.35 million people die in traffic-related accidents eachgovernment agencies, civil society organizations, etc., which

year, thus road safety is widely recognized as a common issue

will start on a trial basis in 2023. For executing the BRSP, theglobally. Given its foundation as a tire company, the Group

Group, in collaboration with GRSP, developed the playbook

understands that road safety is an integral part of the design

as an internal global guide and shared it with our globalof mobility systems and the resilience of communities.

employees. In 2022, 47 initiatives2 related to road safety wereSince proper tire maintenance is important for safer

implemented in 17 countries, including 38 initiatives withtransportation, the Group conducts safety awarenessexternal partners3, involvement by 1,036 employee volunteers4,

1

activities such as tire-safety inspections for customers as

and reached 96,169 people5 from the community.

well as other community-oriented activities as part of its

Notes: 1. Source: WHO “Global Status Report on Road Safety 2018”
2. Counting of “initiatives” varies by country or region.
3. Counting of “partners” varies by country or region.
4. The number of volunteer is the total number, including estimates for some
activities.
5. The number of people who directly benefited from the Group’s
activities, which varies by country and region and only includes those
activities for which the Group has confirmed the status.

commitment to “Ease: Committed to bringing comfort
and peace of mind to mobility life” (another value ofthe Bridgestone E8 Commitment). Also, to promote“Empowerment,” the Group is educating the next generation
on road safety and its importance in improving quality of life
in local communities.
The Group is also enhancing traffic safety education for
employees to raise safety awareness throughout the value
chain, thereby contributing to traffic safety not only throughits products and services, but also through its daily work.
The Group’s Global Road Safety Task Force has developed
a global framework by transforming our current local initiatives
into one global synergistic program (the Bridgestone Road

Dave Cliff
ONZM MStJ.
CEO, Global Road Safety Partnership(GRSP)*

Safety Program: BSRP) in cooperation with the Global Road

The UN declaration (“Decade of Action for Road Safety

Safety Partnership (GSRP), an international NPO that promotes

2021-2030”) of 2022 calls upon leaders in the private

traffic safety activities by connecting companies, development/

Bridgestone 3.0 Journey 2023 Integrated Report81How we get there |Highlights of ESG Activities

SocialIn Harmony with Communities

opportunities to more than 41,250 students. It promoted
sector to contribute to further collaboration to improve

good habits and motivated the students to take responsible

global road safety. The declaration specifically highlighted

action as drivers and passengers to stay safe on roads.

those areas where the private sector can make substantial
contributions such as in the areas of safe vehicle purchase,driver and fleet safety, financing and by applying ‘Safe
System’ principles to their value chains. Sustainable
Development Goal (SDG) Target 3.6, which calls for halving
the number of deaths and injuries from road traffic
accidents by the end of 2030, will require concerted effort
across all areas. Bridgestone, a recognized road safetyadvocate and protagonist since it was established, hasembraced the UN declaration, which has heightened theCompany’s road safety commitment.

Traffic safety education

The founding principles of GRSP were built upon amodel of partnership. This involves bringing the unique
voices of the private sector, civil society and government
together to develop and apply evidence-based road safety
policy and practice. Since 2020, GRSP has been working
shoulder-to-shoulder with Bridgestone under thisTerry Birss

partnership model to demonstrate leadership in both roadCEO & Managing Director
Road Safety Education Limited provider of the RYDA programsafety thinking, and action.
As this partnership continues to grow, we lookforward to supporting Bridgestone’s road safety passion

We all have a role to play in road safety in working

and innovation. To continue to improve, we will need totoward the common goal of saving lives and reducing

evolve and inspire through the application of impactful

injuries on our roads. RYDA has reached more thanand sustainable programs and policies. Leveraging the

700,000 students since its inception 21 years ago with

passion of its people, and by applying a road safety

the aim of empowering and educating the next

focus across its full value chain, Bridgestone has an

generation of road users. Bridgestone’s ongoing support

enormous opportunity to influence road safety

helps us sustain the delivery of our life-saving messages

positively everywhere it operates and beyond.

to schools who increasingly rely on RYDA and we’re* GRSP – hosted by the International Federation of Red Cross and Red
Crescent Societies (IFRC)

thrilled to have a partner in Bridgestone that places thesame significance on road safety education as we do, notonly in Australia & New Zealand, but on a global level.

Think Before You Drive, a safe-driving awareness program
launched by Bridgestone Americas, Inc. (BSAM) in 2005, aims

Believing that education is essential for improving people’s

educational programs and materials. BSAM has been

quality of life and developing their professional skills, thepartnering with universities and government agencies toGroup supports inclusive and accessible education in theimplement this program for kids, students, and drivers to

local communities in which it operates. With a particularreduce traffic accidents and dangerous driving. Since 2015,

emphasis on primary education and technical and vocational

these materials have reached more than 72,000 people intraining, the Group applies its strengths in tire manufacturing

Mexico, Costa Rica, Colombia and Ecuador.

and sales to offer a variety of training programs that foster

Think Before You Drive – Kids is geared to children 6 and12 years old with the aim of educating them through roadthe next generation of automotive maintenance professionals.
In 2022, 182 initiatives1 related to education were

safety tips and inspiring an awareness of the behavior required

implemented in 22 countries, including 163 initiatives withto travel safely on the roads. In 2022, the program reached out

external partners2, with the involvement of 18,484 employee

to four schools and engaged with more than 1,500 students.

volunteers3, and reached 52,351 people4 from the community.

Partnered with RYDA which is an initiative that82

Activities Related to Education

to instill in drivers the importance of traffic safety throughIn Japan, Bridgestone Corporation offers the Environment

provides traffic safety education, the Group hosted road

Hands-On Learning Program, where students can learn thesafety workshops for young drivers in schools in Australiadifficulties and importance of balancing business and theand New Zealand. In 2022, the program provided learning

environment through environmental initiatives in production.

Who we are

Where we are going

How we get there

Data

It also runs the Global Communication Skill Program, where

Bridgestone Europe, Middle East, India and Africa

its employees share their experiences on the difficulties and(BSEMIA) promoted healthy living among its employees byimportance of communication with people from different

regularly disseminating information on exercise through thebackgrounds, cultures and customs. In 2022, the Environment

digital platform B-Olympic. Employees jointly engaged in

Hands-On Learning Program was conducted 27 times and thewalking, running and cycling, achieving a distance of 2.0

Global Communication Skill Program was held 10 times. A total

million kilometers in 2022 and donating approximatelyof 3,261 students from elementary and junior high schools all

135,000 EUR, an amount corresponding to the total distanceover the nation participated in these events.

employees traveled, to 15 local cancer charities.

BSAM is addressing the nationwide shortage of
automotive technicians in the United States by providing

Activities Related to Disaster Prevention and Relief

training on the next generation of automotive maintenance

The Group views the support of regional communities

technology.

affected by natural disasters to be part of its social mission.

In 2022, more than 150 students across BSAM participated

The Group will continue to provide a variety of reconstructionin the program. For example, more than 48 graduatesassistance based on disaster conditions and needs in thefrom Maplewood High School in Nashville, Tennessee havestricken areas. The Group sincerely hopes for a swift recovery

found employment in the automotive industry, and moreof the people and areas affected by disaster.

than 50% of program participants of the East Community

In 2022, 36 initiatives1 related to disaster prevention

Learning Center in Akrom, Ohio earned Automotive Service

and relief were implemented in 17 countries, including 19

Excellence certifications before graduation.

initiatives with the participations of external partners2, with
302 employee volunteers3, and reached 827 people in thecommunity4.
The Bridgestone Tire Indonesia (BSIN) water rescue teamand their training are vital in the Karawang and Bekasi areas
due to the high frequency of flooding disasters. Around 15
school units, 14 health centers and 1,699 housing units weredamaged following a 6.6 magnitude earthquake that struck
the Pandeglang Regency in Indonesia on January 14, 2022.

Automobile maintenance technology education

Flooding that followed heavy rainfall in March further
exacerbated the recovery efforts in the area and many

Activities Related to Healthhouseholds were impacted. BSIN activated the Search and

The World Health Organization (WHO), based on an analysis

Rescue Team, and together with the General Affairs and CSR

of causes of death by income level, notes that it is important

team, aided the local community, providing 100 basic foodto address health improvement according to the needs ofpackages, two boats, two outboard engines, safety jackets,

each country and region.

60 sign boards that inform evacuation routes & assembly

The Group improves the sustainability of communities

points to the Regional Disaster Management Agency (BPBD).

by contributing to efforts to improve local health conditions

Food donations were extended to victims who had not yet

and to create a culture of healthier lifestyles. In 2022, 238

received assistance from the government or other parties.

initiatives1 related to health were implemented in 24
countries, which includes 201 initiatives with external
partners2, with the participation of 1,311 employee volunteers3,
and reached 86,885 people4 from the community.

Health promotion charity event

Notes: 1. Counting of “initiatives” varies by country or region.
2. Counting of “partners” varies by country or region.
3. The number of volunteer is the total number, including estimates for some
activities.
4. The number of people who directly benefited from the Group’s
activities, which varies by country and region and only include those
activities for which the Group has confirmed status.

Water rescue team

Bridgestone 3.0 Journey 2023 Integrated Report83How we get there |Highlights of ESG Activities

SocialProcurement
Our mission is to create social value through sustainable

100% of Tier 12 suppliers will have acknowledged the

procurement activities. The Bridgestone Group is committed

revised Global Sustainable Procurement Policy by the end of

to creating value and continually working toward a sustainable

2023. (As of March 31, 2023, 87% of Tier 1 tire materialsociety to realize long-term environmental, social andsuppliers had done so.)economic benefits by incorporating the following into theentire supply chain:
1. Transparency
2. Compliance3. Quality, cost, delivery (QCD) and innovation
4. Sustainable procurement practices
The Group’s sustainable procurement initiatives create
long-term environmental, social and economic benefits forstakeholders across its supply chain. This work is grounded
in its Global Sustainable Procurement Policy

and aligns

with the Group’s goal of using 100% sustainable materials1
by 2050 and beyond. The policy helps identify and evaluate
qualified suppliers, promote best practices and serve as acommunication and improvement tool for the industry. The
Group’s sustainable procurement mission is important ascustomers and consumers are ever more interested in thenatural rubber supply chain, including issues related tohuman rights and environmental practices of the rubber theGroup sources.

Notes: 1.	The Group defines sustainable materials as materials “1) that comefrom resources with a continual supply, 2) that can be used as part ofour business over the long-term, and 3) that have a low environmental
and social impact over the lifecycle from procurement to disposal.” Fordetails on sustainable materials, see “Long-term environmental vision(2050 and beyond): Towards 100% sustainable materials.”
2.	Suppliers that supply materials directly to the Group.

ESG Due Diligence Activities
As a leading company in the tire and rubber industry, theGroup is focused on continually meeting the increasingsustainability requirements for natural rubber, while also
addressing the environmental and social risks arising fromthis expansion. Therefore, the Group has started to enhance
its ESG due diligence for the natural rubber supply chain, forwhich risk management is seen as most critical by external
stakeholders. In order to identify and assess ESG risks in its
natural rubber supply chain, the Group has utilized
assessments by Verisk Maplecroft

and EcoVadis.

95% or more of the Group’s spend-basis Tier 1 tire material
suppliers will have completed an EcoVadis enhanced ESG risk
assessment by the end of 2023. (As of March 31, 2023, 97%
had done so.) All of natural rubber Tier 1 suppliers will havecompleted an EcoVadis enhanced ESG risk assessment by theend of 2023. (As of March 31, 2023, 94% had done so.)In addition, the Group has prioritized targeted

Andy Thompson
Director, Sustainability Policy
Bridgestone Americas, Inc.
Executive committee memberof GPSNR

and conducted on-site ESG audits of those suppliers using aself-assessment questionnaire developed in collaboration
with WWF Japan. This has enabled us to assesssustainability risks against the Global Platform for Sustainable

Bridgestone is at the forefront of tackling complex

Natural Rubber’s (GPSNR’s)

sustainability challenges. For example, with over 6

covers issues including child labor, forced labor andmillion smallholder farmers cultivating rubber acrossdeforestation risks, among other industry specific risks.

multiple continents, ensuring a productive andsustainable natural rubber supply is a complex
endeavor. That’s why Bridgestone is committed toplaying a leadership role in the Global Platform for
Sustainable Natural Rubber, where the expertise andresources from across the value chain and civilsociety help to transform the natural rubber supply
chain into a sustainable, equitable and fair one. At
Bridgestone, we believe a sustainable
natural rubber supply chain is good for society andgood for business.

84

suppliers based on Verisk Maplecroft and EcoVadis scores

Policy Framework, which

The Group will conduct on-site ESG audits of 33 natural
rubber processing facilities in 2023.
Although no specific risks were identified in the mostrecent audit, including risks related to human rights violationand deforestation, if a risk is identified by the audits theGroup will continuously support and develop a plan toprevent/mitigate the risk together with suppliers to reducerisks throughout its natural rubber supply chain.

Who we are

Where we are going

How we get thereData nhancing Traceability of Natural Rubber SupplyE
Chain

initiatives as a Group. The task force is in the process of

To further manage risks and contribute to the sustainabilityaligned with the Group’s strategy and Global Platform forof natural rubber, the Group will strengthen its efforts to

Sustainable Natural Rubber (GPSNR) standards.

setting effective and clear KPIs and medium-term goals

enhance traceability, conduct on-site audits of its natural

GPSNR, a truly multi-stakeholder and inclusive

rubber supply chain and leverage digital tools. As a first step,

network, serves as an effective platform for collaboration,

the Group examines and pilots available tools on the market

sharing resources and knowledge, and uniting the Group’s

and partnerships on the ground with the aim of boosting

efforts in enhancing sustainability of the natural rubber

traceability in order to respond properly to the traceability

industry with those of other tire makers, automakers,

levels required under the upcoming EU regulation on

smallholders, processors and producers, and civil society in

deforestation-free supply chains. The Group is working totackling this vast and complicated issue.

introduce a new digitized tool in Liberia that promotes data

Bridgestone’s Sustainable Procurement Working Group

integrity and enables visibility of the farm profile together

donated USD60,000 to GPSNR to support initiatives led bywith other environmental and social parameters for both

GPSNR for smallholder capacity building to be conducted in

our own farms as well as smallholder operations.

2023 and was recognized by GPSNR as an important donor.

30% or more of the Group’s natural rubber supply chain

In addition to providing donations to GPSNR’s capacity

is expected to be traceable to the smallholder level by thebuilding projects, the Group is a member of GPSNR’s Capacity

end of 2023. (At the end of 2022, 33% was traceable to thisBuilding Working Group and actively participates in thelevel based on self declaration by Tier 1 suppliers.)

Smallholders Working Group with the aim of providing
effective support for and promoting smallholders’ voices
in GPSNR. To provide support for enhancing smallholders’Capacity Building
Demand for natural rubber has steadily increased globally

capacity (increasing yield per hectare in a sustainable

over the years, while farmland expansion is becomingmanner), the Group is actively involved in the discussion

increasingly restricted because of the need to protect forests,

around GPSNR’s Shared Responsibility Framework, discussing

whether voluntarily or in accordance with law. Moreover,

the ways in which to build the most equitable financial

poor yields will affect the livelihood of smallholders, making

distribution mechanism, to share resources and knowledge,

it unsustainable for them to continue cultivating naturaland to recognize and award members’ efforts in enhancing

rubber, and could result in them switching to farming othernatural rubber’s sustainability.

crops. In fact, natural rubber used in tire production is one of
the most sustainable raw materials, so it is important for theGroup to make efforts tostrengthen the capacity ofnatural rubber smallholders,increasing yields and income,preventing them from causing
deforestation and other ESG
risks. In 2022, the Group formed
the Capacity Building Task Force,bringing together relevant
functions under its Sustainable
Procurement Working Group tostrengthen capacity building

Extraction of natural rubber

GPSNR meeting sceneGlobal Sustainable Procurement Policy www.bridgestone.com/responsibilities/social/procurement/pdf/Policy_English.pdf
Sustainable Materials www.bridgestone.com/responsibilities/environment/resources/
Verisk Maplecroft www.maplecroft.com/
EcoVadis ecovadis.com/
WWF Japan www.wwf.or.jp/eng/Global Platform for Sustainable Natural Rubber’s (GPSNR’s) sustainablenaturalrubber.org/

Bridgestone 3.0 Journey 2023 Integrated Report85How we get there |Highlights of ESG Activities

In order to foster the trust of society, partners, and customers, and togrow sustainably together with everyone, we are promoting value
creation by anticipating social demands, turning risks into opportunities,
and taking action proactively.

GovernanceAmong our various activities, we introduce some initiatives which
our stakeholders have a keen interest in.

More information is available on the Company’s website.
	Sustainability > Governancewww.bridgestone.com/responsibilities/governance/index.html

Compliance, Fair Competition
Our mission is “Ensure excellence through compliance andIn working toward becoming a sustainable solutions

integrity.” The Group builds trust with all stakeholders bycompany, the policies and other global and regional ethics

ensuring that ethical decision-making guides responsible

and compliance programs the Group develops must continue

business practices across the company’s operations.

to adapt and evolve in accordance with the changing

The Bridgestone Group’s commitment to ethics,
compliance and integrity helps it continuously achieve its

environment and regulatory landscapes.
The Group’s global ethics and compliance program

mission of Serving Society with Superior Quality andconsists of a blend of global and regionally based initiatives.

supports its goal of building a best-in-class ethics andIt aims to balance global consistency with the flexibility

compliance program.

needed to effectively address regional and even local risks

The success of any best-in-class ethics and compliancethat can vary significantly due to the wide range ofprogram, depends on the ongoing and proactive organization-

operations the Group is involved in and the variety ofwide engagement of leaders, managers and supervisors, allgeographic, legal and regulatory environments in which theworking to help build and sustain a culture of compliance.

Group operates. Whether at the local, regional or global

Board oversight, supervision and engagement have beenlevel, initiatives are guided by the Group’s core values andhallmarks of the Group’s ethics and compliance program forprinciples and united under a common framework.

many years. The Group also regularly engages executive
leaders, managers and supervisors to help ensure that

Regional and Local Efforts in 2022

ethics and compliance are at the center of all strategic plans• For the third year in a row, the Group conducted a survey inand decisions. Additionally, periodic reports on the progress

Japan of more than 10,000 employees to measure overalland status of the ethics and compliance program areknowledge and secure feedback on the ethics andprovided to the Compliance Committee reporting to thecompliance program, the Code of Conduct

Board of Directors, and periodic reports are also provided toAnti-Bribery Policy

the Board of Directors in each region.

, the Global

and the different resources available

for sharing concerns.
• BSEMIA launched the new Competition Law Compliance
Program. A select audience of over 1,000 employees
received training on this new program. In December 2022,
the BSEMIA Compliance Essentials, a digital, client-friendly
compliance booklet, was launched. The booklet provides
an overview of the BSEMIA program and highlights the key
compliance objectives, policies and expectations.
• In the China Asia-Pacific region, a new antitrust framework
was launched, with targeted employees receiving live
training on the main policy and two guidelines related to
Trade Association and Competitive Intelligence. As one key
initiative (implemented yearly), Integrity Day was celebrated
once again. Singapore, China, Malaysia, South Korea andVietnam held Integrity Days for all employee levels with a86

Who we are

Where we are going

How we get there

Datacommon theme focusing on “Do the Right Thing” to realize

matters such as sexual harassment and data privacy. Thesethe “Bridgestone E8 Commitment.”

issues are addressed in the Group’s Code of Conduct and• The Group’s Americas operation launched a new

Global Anti-Bribery Policy.

Competitive Intelligence Policy, continued efforts to help
employees learn about the regional Gifts, Meals,

Promotion of Ethics and Compliance Programs

Entertainment and Travel Policy that was launched in late

To further reinforce the third-party compliance program and2021, identified a new data analytics platform that is being

mitigate anti-bribery risks, the Group will conduct a high-piloted in 2023 to help support its antitrust program andrisk intermediaries review globally in 2023, with the aim ofcontinued to promote strong leadership engagement

ensuring that proper control is in place when engaging withthroughout the year. As one initiative, the eighth annual

these intermediaries.

Ethics and Compliance Week was held, which included

As its business and operations continue to evolve, theleadership panels, Leading with Integrity Awards and theGroup will also look at how to adapt its ethics and compliance

Bridgestone Compliance Battle Royale gamification training.

programs to ensure that they remain relevant, adequately
resourced and work effectively in practice. The Group plansto do this through self-assessments and by engaging one ormore third parties to help it assess its ethics and complianceprograms in 2024.

Incentive for Integrity Day in Singapore

the Code of Conduct
www.bridgestone.com/responsibilities/code/index.html

Global Anti-Bribery Policy
www.bridgestone.com/responsibilities/anti_bribery/

Revisions of the Code of Conduct
Following the re-design and revisions to the Group Code of
Conduct at the end of 2022, the Group will continue toreinforce its Code of Conduct in 2023, while introducing an
updated e-learning course that will help employees
understand and comply with the Code of Conduct.
In addition to reflecting updates to the Code of
Conduct, the Group also plans to update its Anti-Bribery
Policy in 2023 to realize the “Bridgestone E8 Commitment.”
The Group’s Code of Conduct, which was published in2018 and re-designed and revised at the end of 2022,
provides us with practical guidance on how to act ethicallyand with integrity. As the Global CEO states in his message
that accompanied the updated Code of Conduct, “whatever
you do at Bridgestone, do it with integrity and let our Code
guide you, always.”This mission is important as anti-bribery and antitrust
activities come under increasing scrutiny, along with otherBridgestone 3.0 Journey 2023 Integrated Report87How we get there |Highlights of ESG Activities

GovernanceCorporate Governance
Basic Approach

Transformation of Corporate GovernanceIn 2020, Bridgestone Corporation, under the mission of

Bridgestone has made continuous efforts to strengthen its“Serving Society with Superior Quality,” defined its vision of

corporate governance structure, including the introduction“Toward 2050, Bridgestone continues to provide social valueof Independent Directors in 2010, the establishment ofand customer value as a sustainable solutions company.”advisory committees to the board between 2013 and 2014,

As part of its efforts in working toward the achievement ofand the adoption of the “Company with Nominating

this vision, the Company has been managing its business in

Committee, etc.” model in 2016. As part of this ongoingaccordance with its Mid- to Long Term Business Strategy.

process, the Articles of Incorporation were amended in 2021

The Company is continuing to improve its corporate

to abolish the full-time position of Chairman and to select agovernance to strengthen internal controls and evolve as a

Chairperson of the Board of Directors from among thesustainable solutions company.

Independent Directors at a meeting of the Board of Directors

Bridgestone has been using the Corporate Governanceto enhance execution and supervisory functions. Please see

Code as a tool for evaluating its governance policies andbelow for an overview of the transformation ofsystems and has implemented all the general principles,

Bridgestone’s corporate governance to date.

principles and supplementary principles set forth in theCode. The Governance Committee, an advisory committee tothe Board of Directors, deliberates and reports on the content
of the Corporate Governance Code in reports (Japanese andEnglish versions) and decisions made by the Board of
Directors are disclosed on the corporate website.

Corporate Governancewww.bridgestone.com/corporate/governance/index.html

Ongoing enhancement of governance performanceYear

Oversight

2022

Management and Operational Execution
Bridgestone
E8 Commitment

Formulate “Bridgestone E8 Commitment”
Commence “2030 Long Term Strategic Aspiration”
Introduce two Joint Global COOs system in Bridgestone Corp.

2021

Abolish the full-time position of Chairperson
Nominate Board Chair from among
independent directors

Commence Mid Term Business Plan
Redefine CEO and COO roles as Global CEO & Global COO respectively

2020

Separate roles of CEO and Chairman of
the Board

Commence Mid- to Long Term Business Strategy

2018

Restructuring of the Board’s authority(Authority delegation to executive
management)

Establish Global Sustainable Procurement Policy, Global Human Rights
Policy and Code of Conduct
Integrate Olympic and Paralympic related business with sports andcycle businesses

2017
2016
2014
2013

Global CSR Commitment“Our Way Serve”

Adopt new corporate structure:
Company with Nominating Committee,
etc.
Establish Compliance Committee
Establish three discretionary board
advisory committees (Governance,
Nomination and Compensation)

Establish Global Mining & Agricultural Solution Company
Quality Mission
Statement

Formulate Quality Mission Statement

Safety Mission
Statement

Global EXCO

2012
2011

Formulate “Our Way to Serve” Global CSR Commitment
Refine Mid Term Management Plan formulating process

Environmental
Mission Statement

Restructure SBUs: BSCAP China + Asia Pacific
BSEMIA Europe+ ME, Africa, Turkey, & Russia+ India (2020-)

Refine Safety Mission Statement
Introduce CEO, COO system in Bridgestone Corp.
Refine Environmental Mission Statement
Refine “The Bridgestone Essence”

The Bridgestone
Essence

2010
2006

88

Introduce independent members of
the Board of Directors

Introduce CEO, COO system in Bridgestone Americas.
Introduce Executive Committees
Establish Strategic Business Unit (SBU) organization structure(Followed by a progressive, continuous review of the operational structure)Who we are

Where we are going

Corporate Governance System

How we get there

Data

The four executive officers, including two representative
executive officers, make decisions on the execution of

In March 2016, Bridgestone transitioned to the “Company

operations delegated by the Board of Directors and assume

with Nominating Committee, etc.” model of corporate

responsibility for the execution of those decisions as thegovernance. The Board of Directors consists of 12 directors,

Global CEO, Joint Global COO (two), and the Global CTO.

including eight Independent Directors. Appropriate andIn addition, these divisions have adopted a system in which

proactive work is also conducted by the Nominating Committee,

members, including the Global CFO, are collectively

Audit Committee and Compensation Committee. The Board

responsible for management. These executive officers, as

of Directors oversees the performance of the Company’s

well as persons responsible for major business entities,

executive officers and directors. Furthermore, to strengthen

comprise the Global Executive Committee (Global EXCO).

corporate governance transparency, the GovernanceThis committee aims to strengthen the checks andCommittee and Compliance Committee have been establishedbalances of the Group by debating and discussing

as advisory bodies to the Board of Directors.

management issues including management strategy and

The Board of Directors, including these statutory

sustainability from a global perspective, which improvescommittees (Nominating Committee, Audit Committee, andtransparent decision-making. In addition, each operating

Compensation Committee) and advisory committees

division maintains a system for reporting to the appropriate(Governance Committee and Compliance Committee),representative officers regarding the execution of duties. This

supervises operating divisions via regular progress reports

information is also regularly reported to the Board ofand information sharing to create a corporate governanceDirectors in a timely manner in order to aid in theirsystem that aims to realize the Mid- to Long Term Businessdeliberations. Collectively, these actions ensure that theStrategy. The Board of Directors and the Audit Committee areGroup maintains an effective supervisory function.

composed of a majority of Independent Directors and thePlease see below for the Company’s corporate

Nominating Committee, Compensation Committee andgovernance structure put in place to realize its Mid- to Long

advisory committees are composed entirely of Independent

Term Business Strategy.

Directors.

Corporate Governance Structure

13

Bridgestone 3.0 Journey 2023 Integrated Report89How we get there |Highlights of ESG Activities

GovernanceCorporate GovernanceApproach to the Composition of the Board of
Directors and the Roles Particularly Expectedof Directors

candidates. Additionally, it is the policy of the Company thatthe board should be of sufficient size to enable adequate
discussion and deliberation. To ensure the objectivity of
external directors, the Company has established its own

The Nominating Committee, in selecting candidates for

Independence Standard. Based on the above approach, thenomination to the board, seeks to maintain diversity and,Company’s Board of Directors has an overall balanced

at the same time, overall balance in board composition withcomposition with diverse perspectives to oversee therespect to knowledge, experience and skills. Committee

successful execution of the Mid- to Long Term Businessmembers consider business experience and expertise in a

Strategy to enhance corporate value.

○

Masahiro HIGASHI

Representative Executive Officer

2

○

○

○

Akira MATSUDAInternal / Non-executive—○

Tsuyoshi YOSHIMIInternal / Non-executive

4○

Yuri OKINA

Outside / Independent

9

○

○

Yukari KOBAYASHI

Outside / Independent—

Yojiro SHIBA

Outside / Independent

5○

Yoko SUZUKI

Outside / Independent

5○

Scott Trevor DAVIS

Outside / Independent

12

Yasuhiro NAKAJIMA

Outside / Independent—

Kenichi MASUDA

Outside / Independent

7

Kenzo YAMAMOTO

Outside / Independent

7

○

○

○

○

○

○

○

○

○
○
○

○

○

○

○

○
○

○
○

○

○

○
○

○

○

○

○
○

○

○

Management Experienceat Other Companies○

Legal Affairs and Risk
Management○

Outside andIndependent
Directors

Finance and Accounting

Global Experience3

Non-executive
Directors/

Technologies andInnovation

Capital, Personnel andOrganizational Strategy

Representative Executive Officer

Name

Audit Committee

Shuichi ISHIBASHI

Executive
Officers/

Nominating Committee

Sustainability

Compensation Committee

Tenure as Director (Years)

wide range of disciplines and fields for Independent Director

○

○

○

○

○

○

○

Notes: Tenure as of March 28, 2023.
Outside and Independent Directors are listed in order of the Japanese syllabary.
Circles indicate the top three priorities in the expected areas of contribution as a director.

Evaluating the Effectiveness of the Board of
Directors

conducted through a one-year cycle that includes evaluation,issue identification, and implementation, leading to continuous
improvement of corporate governance.

The Group has continuously improved its governancestructure, as described in the Transformation of Corporate
Governance section above. Building upon these enhancements,

decision-making and effectively demonstrated its oversightthe scope of the evaluation of Board effectiveness has been taken

functions. These factors included timely reports from operating

to include not only the Board of Directors but also the statutory

divisions for deliberation at Board meetings, productive

and advisory committees. Evaluation of the entire scope of

exchange of opinions among Board members, reports andboard functions includes the review of all board deliberations

discussions on specific themes following proactive requests

and their outcomes and self-evaluations of all directors.

from Independent Directors, active discussions utilizing the

As the following, Board of Director evaluations are90

FY2022 evaluations confirmed that, thanks to a range
of factors, the Board of Directors engaged in transparent

diverse perspectives of Independent Directors, and theWho we are

Where we are goingcreation of globally conscious systems at statutory and

How we get there

Data

In 2023, the Company established an agenda setting

advisory committees.

process for the Board of Directors to ensure continuous

Regarding the status of business execution, based on

stimulation of discussions at Board of Directors meetings.

reports on discussions at the Global Executive Committee(Global EXCO) meetings, the Global CEO and Representative
Executive Officer shared information with the Board of
Directors in a timely and appropriate manner. The above
ensured even more productive discussions between
directors and operating divisions on the formulation of the2030 Long Term Strategic Aspiration, progress with the Mid
Term Business Plan based on the Mid- to Long Term Business
Strategy, and decisions on individual matters related to the
Mid Term Business Plan. Further, in March 2021 the Company
selected an Independent Director as the Chairperson of theBoard of Directors, resulting in lively discussions with even
Board meeting

greater objectivity and transparency.

Effectiveness Evaluation Process
Evaluation(Jan.–Mar.)

Governanceevaluation phase

Issue Identification (Apr., May)

• Director interviews• Governance Committee discusses issues aimed at improving
effectiveness of Board of Directors, report given to
Board of Directors, report discussed at Board of Directors,
issues identified• Governance Committee discusses evaluation results, report
given to Board of Directors, report discussed and managed
by Board of Directors• Statutory committees decide on issues, report given to
Board of Directors

Implementation (May Onwards)

Implementationphase• Board of Directors and statutory committees implement initiatives
for identified issues

Compensation System for Executive Officers

Mid-Long Term Business Strategy. The Compensation
Committee has set the following four goals and evaluates the

Remuneration for each position and individual director andachievement.

executive officer is determined by the Compensation(1) Establishment of the “Bridgestone E8 Commitment” andcommunication with stakeholders both inside andoutside of the Company(2) Investment in and development of people to increase
added value and job satisfaction(3) Carbon neutrality, including reduction of CO2 emissions(4) Circular economy, including increasing the ratio of recycle
and renewable resources

Committee, which is composed solely of Independent
Directors. In its deliberations the committee considers changes
in the business environment, the opinions of shareholders andinvestors, along with information from third-party humanresources and compensation consultants with extensive global
experience and knowledge.
The Company has designed a compensation system
based on the following principles of remuneration: “attract
and cultivate superior talent”, “support a competitive
remuneration level”, “provide motivation for the execution ofbusiness strategies”, and “provide motivation for enhancing

For details on the compensation system, please refer to“(4) Remuneration for Members of the Board and Executive
Officers”

in the Annual Securities Report (104th Fiscal Period).

shareholder value”. From fiscal year 2022, the Company

Remuneration for Members of the Board and Executive Officers

adopted the mid- to long term incentives aimed at promotingwww.bridgestone.com/ir/library/securities_report/pdf/e_104.pdf

sustainability and transformation initiatives, and achieving

Bridgestone 3.0 Journey 2023 Integrated Report91How we get there |Highlights of ESG Activities

Governance

Board of Directors and Statutory Committee Activity Report*–Toward the Transformation to a Sustainable Solutions Company
Message from the Chairperson of the Board of Directors

Scott Trevor Davis
Independent Director,
Member of the Board
Chairperson of the Boardof Directors
Member of the Nominating
Committee
Member of the Compensation
Committee
Chairperson of the GovernanceCommittee

Board Performance Effectiveness at
Bridgestone

discussions. It revolves around establishing a Board thatpossesses an appropriate monitoring function, ensuring theexecution of our externally committed business strategies in

In 2021, I was appointed as the Chairman of the Board of

a transparent, objective and reliable manner, as we strive to

Directors for the first time as an independent director, and I

become a “sustainable solutions company.” Moreover, it

am now entering my third year in this role. As the Chairman

entails achieving a “Bridgestone-like” living Board of Directorsof the Board, I would like to share my observations onthat embodies the spirit of our Company. For this purpose, it

Bridgestone’s continuously improving governance, from theis crucial for directors to actively contribute and express theirperspective of board performance effectiveness.

opinions and engage in meaningful dialogue.

Prior to my appointment as Chairperson, the position

Furthermore, it is important not only to have active

was held by an executive within the management team.

discussions within the Board of Directors but also to establish

However, as part of the governance reforms in 2020, Mr. Tsuya,

effective collaboration with each committee. Considering oura non-executive director, assumed the role of Chairperson,

extensive global operations and the presence of multiple

effectively separating the monitoring function of the Board of

subsidiaries, it is essential to be mindful of communication

Directors from the executive side. Looking back, it was awith these entities. The sphere where our governance attransitional period and I believe it was part of the process to

Bridgestone comes into play extends beyond Board

enhance the supervisory function of the Board of Directors

meetings, encompassing a broader range of activities.

by separating it from the executive side and delegating theauthority of the Chairman to an external individual.
Upon becoming Chairperson, my first step was toWhat the Bridgestone Board Aims forquestion myself about what was expected of me and toengage in dialogue with the Board members to share ourNow, what is the management strategy that the Board ofrespective concerns. In this process, I identified enhancing the

Directors strives to achieve? The current focus is on realizing

effectiveness of the Board of Directors as a paramountthe “2030 Long Term Strategy Aspiration,” which has been

responsibility. However, what does effectiveness mean? It is

extensively discussed and formulated within the Board. It

not just about the general definition of effectiveness but

serves as our guiding principle. Each director considers therather the effectiveness within our Company that matters.

significance of proposals and reports presented by the

The effectiveness of the Board of Directors at

executive team to the Board, both in terms of progress

Bridgestone does not merely involve fostering vigorous* This is a translation of the original Japanese language interview.

92

towards the 2030 vision and overall performance. The Board

Who we are

Where we are going

How we get there

Data

constantly evaluate and make decisions while keeping in mind

emphasize technological advancements. The other suggested

whether the proposed actions align with the long-term goals

the thorough discussion of enhancement of talent creativity,and if they are the right steps to take at the present moment.

as nurturing and activating talent within the organization is a

In this manner, the Board engages in discussions and decisions

crucial element for realization of its strategy. The proposers

by consistently examining what needs to be done at present,

not only raised the topics but also explained their meaning

working backward from a long-term perspective.

and significance, often sparking immediate discussions

In addition to the overarching roadmap of the “2030among the Board members. While there are other relevantLong Term Strategy Aspiration,” we have a Mid Term Businessthemes intertwined with our future strategies, they cannot

Plan in place to work towards its realization. This year is

be disclosed at this time. Nonetheless, it is important to note

particularly significant as it marks the final stages of thethat the Board members actively and proactively seek

2021-2023 Mid Term Business Plan, where progress toward

discussions with a strong sense of ownership andits objectives is reviewed by the Board of Directors. At theengagement, demonstrating their commitment to thesame time, the Company is actively working on shaping theCompany’s progress.

next Mid Term Business Plan for the period of 2024-2026. It

Before the Board of Directors’ meeting, the Chairperson,

may sound peculiar, but we are simultaneously discussing

Global CEO and the Representative Executive Officer, theboth the “Now” and the “Next.”

Joint Global COO, and the secretariat participate to review

As a Board of Directors, our role is focused on

the agenda, the order of presentation, and adequacy of thegovernance and monitoring rather than management.

proposals. Almost every time, there are revisions, which

Therefore, we closely observe the executive team’s efforts in

impose a considerable burden on the secretariat, but it isdeveloping the Mid Term Business Plan, including attending toan indispensable process for the operation of the Board

observe Global EXCO meetings. We also receive explanationsof Directors.

from the Global CEO regarding the plan’s creation process

Furthermore, after approximately six months from theduring Board meetings. This ensures a high level of

discussions on agenda setting, we evaluate whether thecommunication and collaboration between the Board anddiscussions and set agenda thus far have been sufficient,

the executive team.

consider if there are any additional topics that need to be
discussed, and reassess if the approach based on the
proposed agenda and schedule at the beginning of the fiscal

Bridgestone-like Process of Setting Agenda
Items for the Discussion of the Next Mid TermBusiness Plan

year has been appropriate. We strive to devise processes
that maintain a high level of discussion quality by evaluating
and making adjustments as necessary. While it may give theimpression of distributing topics throughout the year, given

In order to enrich the discussions on our management

the rapidly changing business environment, there is no time

strategy, including the next Mid Term Business Plan,

to waste. Therefore, we aim to conclude all proposed

we consider agenda setting within the Board of Directors

agenda within six months.

to be crucial. Every April, the Board of Directors engages indeliberations to determine the annual agenda and key topics
for discussion. As the Chairperson, I propose the themes andannual schedule for consideration by the Board, while also
welcoming suggestions from independent directors for
additional or in-depth discussions on specific topics. These
proposals cover a wide range of areas, ensuring a balanced
and diverse set of themes.
This year, as we delve into discussions regarding thenext Mid Term Business Plan to realize our “2030 Long Term
Strategy Aspiration” toward a sustainable solutions company,
several significant issues were put forward in response to theinitial proposal that sustainability should be thoroughly
discussed. For example, the proposal highlighted theimportance of discussion on technology strategy, as we aim
to become a sustainable solutions company, our businessmodel must undergo substantial qualitative changes andBridgestone 3.0 Journey 2023 Integrated Report93How we get there |Highlights of ESG Activities

Governance

Board of Directors and Statutory Committee Activity Report–Toward the Transformation to a Sustainable Solutions Company

A Balanced Board of Directors Portfolio
Enabling Vibrant and Diverse Discussions

engineering them to gain a comprehensive understandingof the current priorities and discussion topics. This enables
them to bring diverse opinions and information to the

The discussions on the set agenda involve a total of 12

board, ultimately supporting sound decision-making anddirectors, including eight independent directors who bringstrategic planning within the organization.

diverse expertise and knowledge. In terms of their role as

Furthermore, as other independent directors also

independent directors on the Monitoring Board, they arerecognize and commend Global CEO Mr. Ishibashi for his

expected to provide unique perspectives on how the board

commitment to engaging in thorough discussions with board

is structured and monitored. Being separate from themembers, which we believe is rare among CEOs in otherexecutive side, independent directors can objectively assesscompanies. The Board of Directors is composed of directors

matters. When receiving reports and proposals from thewith diverse perspectives who represent external interests,

executive team, they examine each item to ensure that thecreating a balanced composition. Global CEO considers theinformation is comprehensive, logical, and appropriate

Board of Directors as a valuable platform for refining his ideas

given the current circumstances, without any biases, implicit

and believe that participating in discussions within the board

agreements, or undue consideration. Additionally, as

enables him to effectively explain his viewpoints outside of it,

independent directors are entrusted by the shareholders

thus ensures comprehensive information is provided forand represent the interests, they must be mindful of theboard discussions and takes his time to openly and humblyinterests of external stakeholders in their actions. The

share his insights and genuine thoughts.

independent directors, with different perspective and94

Having served as a director in our Company for 12 years,

timeframe from executives, contribute to the board by

I can reflect on the initiatives undertaken by the three CEOs

approaching matters in a more long-term manner, reverse-

during that time. As a result, I am sometimes inclined to offer

Who we are

Where we are going

How we get thereDatarather critical opinions based on what has worked and what

Specifically, the Nomination Committee assesses thehasn’t. I also discuss the reasons behind the establishment

activities required to fulfill its responsibilities while observing

and importance of the organization, meeting bodies, andother committees and the Board of Directors. To do so, it

other aspects that we currently value. Among the board

objectively evaluates whether other committees and themembers, there are individuals who, like myself, have

Board of Directors are functioning appropriately from an

observed the Company for a long time, as well as those withindependent perspective. The Compensation Committee andrelatively less experience who can bring fresh perspectives.

the Audit Committee are similarly evaluated. Additionally, theThis balanced composition of members contributes to the

executive team is also evaluated as part of the governancerealization of vibrant discussions in the Board of Directors.

process. Through mutual checks and balances, we continually
strive for even higher levels of effective governance while
holding each other accountable.

Governance Platform for Achieving a
Sustainable Solutions Company
In my interactions with institutional investors, I am often
questioned about how close we are to achieving the ideal
form of governance. My answer is always the same: “There isno finished state.” Each year brings different challenges, andthe expectations for governance are constantly evolving.
Keeping in mind that there is no perfect state of governance,
we continue to explore what we can do to realize ourCompany’s mission and vision. While there may not be adefinitive end point, there are always actions that need tobe taken in the present.
In our Company’s pursuit of becoming a “sustainable
solutions company,” we engage in an annual process ofevaluating the effectiveness of our Board of Directors as they
discuss what the Board needs to do. As a Company with
Nominating Committee, etc., we recognize the importanceof not only the Board of Directors but also the statutory
committees, including the Nomination, Compensation, andAudit Committees, as well as advisory committees like theGovernance and Compliance Committees, are functioning
effectively and fulfill the required activities. We refer to thecollective functions of these broader committees as thegovernance platform. We evaluate the effectiveness ofgovernance over the course of one year, focusing on these
entities. At the beginning of each fiscal year, the Board of
Directors and statutory committees identify areas for
improvement and growth, which are then shared among
them. Subsequently, throughout the year, we address thesechallenges. The committees provide quarterly progress reports
and engage in discussions at the Board of Directors as necessary.
Towards the end of the year, the Board of Directors and eachcommittee conduct a review, and the Governance Committee,
composed solely of independent directors, conducts an overall
assessment and proposes a comprehensive summary of thecurrent year and the desired direction for the upcoming year
to the Board of Directors. This cycle enables the evaluationand improvement of governance practices.

Bridgestone 3.0 Journey 2023 Integrated Report95How we get there |Highlights of ESG Activities

Governance

Board of Directors and Statutory Committee Activity Report–Toward the Transformation to a Sustainable Solutions Company

Message from the Chairperson of the Compensation Committee

Yuri Okina
Independent Director,
Member of the Board
Chairperson of theCompensation Committee
Member of the Nominating
Committee

Introduction of Sustainability Incentives

assessments. Based on a comprehensive evaluation of efforts
toward medium- to long-term enhancement of corporate

Bridgestone’s compensation system is divided into fixedand variable components. The variable component hasvalue, the committee determines remuneration.
While this process is conducted on an annual basis, thetraditionally included short-term and long-term incentives

process of setting goals and developing initiatives is also

designed to motivate the management team towardcrucial. Sharing these with representative executive officers

enhancing corporate value by linking it to factors such as

and executive officers and pursuing sustainability from theoperating profit and ROIC. While qualitative evaluations, suchsame perspective is considered a significant step forward. We

as research and development achievements that cannot be

have now completed one cycle, from setting goals to evaluation

solely measured by numbers, were previously considered as

and determining remuneration. Moving forward, we intend topart of the short-term incentives, there has been a growing

continue discussions within the Compensation Committee,

recognition in recent years that they should be positioned asrefine goals and processes through trial and error, and evolve

incentives for the long-term enhancement of corporate value.

while implementing the PDCA (Plan-Do-Check-Act) cycle.

In response to this recognition, the Compensation Committee
engaged in multiple discussions and decided to introduce a
new compensation aspect called “sustainability incentives” inthe form of Restricted Stock Units (RSUs) starting in 2022.

Points of Discussion in Designing theCompensation System

In this compensation system, we position sustainability

96

and transformation as initiatives aimed at medium- to

The Compensation Committee prioritizes incentives that

long-term enhancement of corporate value. Every year, thecontribute to the enhancement of corporate value when

Global CEO commits to specific initiatives with definedconsidering the design of the compensation system. One

objectives, and the following year, he evaluates the extent to

crucial point of discussion is determining which elements

which they have been achieved. The Company meticulously

should be linked to variable remuneration. To ensure a certain

establishes specific targets for the four goals outlined in thelevel of competitiveness as a global company, we take into

securities report, such as investment in people and achieving

account the situations of major domestic companies andcarbon neutrality. These targets are aligned with long-term

overseas competitors. Furthermore, we thoroughly examine

objectives, such as targets for 2030 and 2050, allowing forthe remuneration system, considering its alignment with theevaluation and verification at a later stage. The Company sets

corporate strategy and mid term business plans, with the aim

detailed and diverse indicators for each goal. The Compensationof promoting the execution of the business strategy. Although

Committee engages in discussions regarding the attainment

the Compensation Committee is composed entirely ofof these indicators and the progress in achieving the objectives.

independent directors, we actively communicate with

It also verifies the validity of self-evaluations and conducts

representative executive officers, including the Global CEO,

Who we are

Where we are going

How we get thereDataand executive officers to ensure the effectiveness ofsustainability incentives included within the Bridgestone E8

incentives in the compensation system. The compensation

Commitment encompass elements of transformation.

system is carefully designed, and to clearly communicate its

Sustainability incentives, whether in terms of CO2

intentions, the members of the Compensation Committee

reduction or human capital investments, often take several

have opportunities to directly explain it to the executive

years to yield results and may not immediately or directly

team. Through communication with the executive team, thecontribute to profit. The Company views the Bridgestone E8Compensation Committee gains insights and deepens its

Commitment as encompassing a transformation in which it

understanding of issues by hearing different perspectives

aims to develop business models aligned with the Bridgestone

and getting feedback from people on-site. We incorporate

E8 Commitment in the medium-to long-term. Business model

various opinions from the executive team, engaging intransformation is essential to becoming a sustainableongoing discussions within the Compensation Committee tocompany. That is why our remuneration system allocates half

ensure that the compensation system reflects these inputs.

of the long-term incentives to PSUs and the other half tosustainability incentives, emphasizing investments thatsufficiently consider the enhancement of medium-to long-

Evaluation and Challenges of the Compensation
Systemterm corporate value and prioritize sustainability as the coreof the Group’s transformation. This serves as a message thatsignifies our expectations for Bridgestone’s future transformation.

The proportion of fixed and variable remuneration differs

I believe that the key areas where the Company should

between top management and executive officers, and it isstrengthen its transformation are investments in humannatural for top management to have a higher ratio of variable

resources and improving employee engagement. In enhancing

remuneration in order to demonstrate their commitment tomedium- to long-term corporate value, it is crucial to create aperformance. The inclusion of Performance Share Units (PSUs)

workplace where employees can feel a sense of growth, andthat are linked to targets of mid term business plans such as

the Company is paying attention to various aspects, including

ROE and ROIC, in addition to incentive remuneration linked

improving the working environment in factories and employee

to short-term operating profit, demonstrates a proactive

welfare. It is a characteristic of Japanese companies to haveapproach to incorporating incentives for medium- to long-extremely low investment in intangible assets, particularly interm enhancement of corporate value. However, there may

areas such as investment in people and organizational

be challenges in relying solely on numerical goals whentransformation, which are considered as economic capability

unforeseen external factors such as COVID-19 can have ainvestments. This low share of investment compared withsignificant negative impact. It is also important to consider

other advanced countries is a challenge for the entire Japanese

factors such as different pension systems, labor market

economy. Furthermore, at present, both for Bridgestone andstructures, and wage trends overseas when evaluating thein general, combining intangible assets such as data andremuneration of foreign executives and implementing

intellectual property with manufacturing to provide newretention measures. We are constantly adapting and improving

value has become a decisive factor. In light of this, I strongly

our compensation system on a daily basis to maintain its

believe that investing in human capital, which includes

fundamental direction while remaining flexible in responding

providing adequate wage levels commensurate with job

to unforeseen circumstances in a rapidly changing environment.

responsibilities, along with opportunities for growth and asense of fulfillment at work, to be of utmost importance.
In addition, from a diversity perspective, promoting

Balance between Performance Improvement
and Transformation

the advancement of women is also a significant theme for
Bridgestone, and I consider increasing the representation of
women, including in executive positions, to be an important

In order for a company to ensure sustainable growth, bothissue. The top executives, such as the Global CEO and CTO,

improving performance and driving corporate transformation

are earnestly considering women’s empowerment, and I

are necessary. However, these directions may not always

find recent initiatives in areas like FemTech to be particularlyalign in the short term, so we consider the balance between

impressive. While the number of female executives and key

the two in the design of our compensation system. As

positions may still be limited, I highly appreciate the sincere

mentioned earlier, variable remuneration includes short term

attitude and proactive measures taken to understand andincentives linked to operating profit, while mid- to long-term

address women’s health issues, as demonstrated throughincentives such as PSUs focus on capital efficiency byinitiatives such as promoting employee well-being. I also

considering ROIC and ROE. The Company also creates ansense a strong commitment to creating an environment

inverted tree structure internally to ensure ROIC is understood

where women can thrive, and I hope to see an increase inat all levels, making it a tangible profitability target thatthe number of women who actively contribute and succeed

resonates with on-site operations. On the other hand,

as time goes on.

Bridgestone 3.0 Journey 2023 Integrated Report97How we get there |Highlights of ESG Activities

Governance

Board of Directors and Statutory Committee Activity Report–Toward the Transformation to a Sustainable Solutions Company

Message from the Chairperson of the Nominating Committee

Kenichi Masuda
Independent Director,
Member of the Board
Chairperson of the Nominating
Committee
Member of the Compensation
Committee
Chairperson of the Compliance
Committee

Activities of the Nominating Committee andDirector Candidate Selection Process

I believe that investing considerable time and effort in
the process, engaging in diligent and respectful communication
with each individual, and building trust are essential for

The composition of the Board of Directors is subject tofulfilling the role of the Nominating Committee. I also feelapproval at the Annual Shareholders’ Meeting held in March.

this is possible thanks to the cooperation of everyone,

Once the meeting is concluded, we begin the deliberations

including the Global CEO, directors, and executives, as wellfor the following year starting from April. We continuously

as the dedicated support provided by the secretariat staff.

review and consider the composition of the Board of

While there are many discussions among the three members

Directors based on the perspective of creating a Board thatof the Nominating Committee, it is valuable to consult withcan handle any given situation. We also engage in ongoing

the secretariat before and after these discussions to organize

discussions about the ideal composition of the Board. We

opinions and confirm the direction. I believe that by establishingemphasize not only discussions among the three independent

a well-structured secretariat, we can demonstrate thedirectors of the Nominating Committee but also prioritize

Company’s sincere commitment to governance, with theregular meetings with the Global CEO and Joint Global COO,

aim of ensuring the effectiveness of the committee andas well as hearings from executive officers and seniorcreating an environment where independent Board

executives both domestically and globally. Through thesemembers can work comfortably.

interactions, we gain insights into the direction of businessstrategy and the current status of business execution, while
also hearing the expectations for the Board of Directors. In
2022, we held 21 Nominating Committee meetings. In

Composition and Philosophy of the Boardof Directors

addition to the work of the Nominating Committee, as the98

chair of the Nominating Committee, I also schedule

As a company with a Nominating Committee, etc., in place,

individual meetings with the Global CEO and independent

the primary role of the Board of Directors is to determine

Board members to hear their opinions and perspectives.

the fundamental policies of management and oversee theTaking all this information into account, we decide on

execution of business operations based on those policies.

director candidates to be presented at the Annual

The main point is whether or not we can create a Board

Shareholders’ Meeting for the following year, normallythat is capable of fulfilling its supervisory function. Currently,

during the autumn to winter period. We report to the Board

the Board consists of two executive directors who alsoof Directors no later than around January.

serve as executive officers, and ten non-executive directors

Who we are

Where we are going

How we get thereData(including eight independent directors) who are dedicatedhave individual conversations with each director, striving

to oversight and do not participate in the execution of

to understand their personalities, perspectives, andoperations. The inclusion of two directors from within thesentiments. Careful consideration is given to selecting

Company among the non-executive directors is based onmembers who are suitable and to ensuring that the Board

the belief that it is important to have individuals whofunctions in a balanced manner as a whole. We strive tounderstand internal dynamics and the unique needs of thecreate a harmonious and well-functioning Board by taking

Company engage in oversight from the same perspective as

into account these factors. Regarding discussions at Board

someone from outside the Company. Given that the Board isof Directors meetings, I believe the chair of the Board is

expected to exercise its supervisory function as a collective

doing an excellent job in preparing for the meetings.

body, we emphasize teamwork to enable discussions fromdiverse perspectives. We believe it is important to haveindividuals with diverse backgrounds and expertise who canleverage their respective perspectives and specialties when

The Role of the Nominating Committee in
Succession Planningreceiving reports and explanations from executive departments.
By complementing and supporting each other, we can engage

The Nominating Committee actively engages in openin effective discussions and fulfill our supervisory responsibilities

discussions with executive departments to contribute tothrough teamwork.

appropriate succession planning. Recognizing that succession

From a diversity perspective, we place greatplanning can be a sensitive topic within an organization, we

importance on creating a Board of Directors with individuals

believe that having a Nominating Committee composed

who have diverse backgrounds and expertise in various

solely of independent directors can be beneficial. This allows

fields. Furthermore, in order to leverage this diversity, wefor open discussions where executives can clarify their own

believe that teamwork is crucial. For instance, we strive tothoughts and gain fresh insights. While it is true that none

form a well-balanced team by including both long-servingof the independent directors have had experience as theand newly appointed members. We can integrate new ideas

CEO of Bridgestone, they are individuals who strive toby having Board members with fresh perspectives andunderstand the current state and challenges of the Company

insights, while those who have been with the Company forand contribute in any way they can to overcome thesea longer period can contribute their valuable knowledge

challenges and make a positive impact. When the Global CEO

and experience. We believe that both perspectives are

or Joint Global COO presents at Board meetings, our reactions

necessary for effective decision-making and governance.

and questions help them understand the concerns and

The current Board members, regardless of whether

expectations from an external perspective and enable them

they come from internal or external backgrounds, all share ato reassess their thinking and communication approach.

common desire to contribute to the improvement of theThis allows them to gain confidence in the direction they

Company’s management from their respective positions

should take. These aspects, among others, demonstrateand have a genuine intention to be of help and make a

the effectiveness and significance of the Board of Directors

difference. They approach discussions with an open mind,

as a forum. I also sense that other independent directors

attentively listening to the opinions of others, and thenapproach the Board with a similar mindset. Moving forward,

express their own views, fostering an atmosphere of open

I aim to contribute to the Company’s transformation andand candid dialogue. The diverse opinions and questions

growth of the Board of Directors by promoting teamworkthat arise from different backgrounds and perspectives are

and engaging in meaningful dialogue.

highly respected, and management has a willingness toactively incorporate ideas for improvement. Creating a
Board of Directors where such discussions can continue isthe most important task of the Nominating Committee.
Therefore, careful consideration is given to the selection of
new Board members, taking into account factors such as thebalance among the members and the overall dynamics ofthe Board. To invigorate an organization, a certain level ofchange is necessary. This is why we regularly consider thecomposition of the Board of Directors. It is fascinating how
the dynamics of a group can significantly change withjust one new member. That is why I make it a point to

Bridgestone 3.0 Journey 2023 Integrated Report99How we get there |Highlights of ESG Activities

Governance

Board of Directors and Statutory Committee Activity Report–Toward the Transformation to a Sustainable Solutions Company

Message from the Chairperson of the Audit Committee

Kenzo Yamamoto
Independent Director,
Member of the Board
Chairperson of the Audit
Committee

Reflecting on the Activities of the Audit
Committee in 2022

tied to this belief and commitment, it is crucial that
employees truly understand and embrace it, and find ways
to put it into practice. Over the past three years, it has been

The Audit Committee implements initiatives in line with whatchallenging to conduct on-site audits due to the COVID-19

is expected of it as part of a company with a Nominating

pandemic. However, in 2023, we plan to hear directly from

Committee, etc. However, since business activities are

employees at factories and sales locations, including at

dynamic in general, new issues arise on a daily basis. In 2022,

operations overseas. The management and on-site staff ofwe faced various issues such as the restructuring of theeach organization have been actively promoting thediversified products business, the suspension of all

Bridgestone E8 Commitment, and I believe it has alreadymanufacturing activities in Russia in response to thegained considerable traction. Nevertheless, as the Audit

situation in Ukraine, and the Company-wide response to

Committee, we aspire to fulfill our role by further promoting

cybersecurity. The Audit Committee and the Internal Audit

understanding of the E8.

Division work together to ensure internal control due
diligence, or appropriate procedures, are being implemented
for each of these events. For instance, with regard to
cybersecurity, the Audit Committee directly consulted
with the departments in charge to confirm the effective

Collaborative Approaches and Evolutionof the Audit Committee and the Internal
Audit Division

implementation of global systems, that lessons were learned,
and that countermeasures are in place. We also receive reports

The Internal Audit Division reports to both the Audit

from the Internal Audit Division and conduct evaluations. By

Committee and the Global CEO. This framework allows theapplying this process to cases such as the ones above andInternal Audit Division to work together with the Audit

providing direct feedback to management as necessary, we

Committee and to respond collectively in situations when

strive to implement a PDCA cycle that ensures the results of

it is necessary to interact with management on a one-on-

audits are utilized in the Company’s management.

one basis. The management team fully understands thisWe have also placed great importance on monitoring the100

arrangement. Members of the Internal Audit Division attend

degree of penetration of the Bridgestone E8 Commitment. In

every meeting of the Audit Committee and listen to thethe E8, there is a phrase stating, “For the sake of the Earth,

discussions. This enables prompt investigation by thewhich future generations of children have entrusted in ourInternal Audit Division in response to any queries raised bycare”. Since the Group’s business activities are fundamentally

Audit Committee members. The Internal Audit Division has

Who we are

Where we are going

also strengthened its global collaboration by regularly

How we get there

Data

Activities in 2023

holding coordination meetings with the internal audit
departments of BSAM, BSEMIA, and BSCAP. The framework is

I believe that focusing on risk management is crucial as it isdesigned to ensure three lines of defense. Internal Audit

the primary responsibility of the Audit Committee. Throughout

Division members also acquire various international audit

my long tenure at the Bank of Japan, I gained experience

qualifications, which contributes to the high quality ofin crisis management, including risk mitigation, systeminternal audits.

development, and business continuity planning (BCP) during

Effective Operation of an Audit Committee
Composed Mainly of Independent Directors

the Great East Japan Earthquake. From that perspective, I
appreciate the Company’s excellence in identifying global
management risks using a top-down approach, forming
global teams to ensure thorough evaluations, and enhancing

Among the seven Audit Committee members, five arepreparedness for emergencies. The Audit Committee aims

Independent directors with diverse expertise andto assess whether these preparations are sufficient and if

backgrounds in management, law, and IT. In addition,

each location is equipped to respond in times of crisis. In

two experienced former Bridgestone executives, one

addition to evaluating the degree of penetration of thespecializing in finance and accounting and the other in

Bridgestone E8 Commitment, the Company is also focusing

product development and quality, serve as full-time Audit

on enhancing its understanding of sustainability initiatives

Committee members, responsible for daily informationand efforts related to talent creativity in 2023.

gathering. Risk incidents are regularly shared with Independent

During Audit Committee meetings, a significant

Audit Committee members, or as necessary, in real-time.

amount of time is dedicated to conducting hearings withThis creates a system in which the members of the Audit

executives, including representative executive officers, asCommittee can timely grasp the Company’s situation.

well as with responsible departments. The committee also
receives reports from the Internal Audit Division, andDecision-making Process for the Appointmentof a New Audit Firm

conducts hearings with external auditors. As mentioned
earlier, the quality of our internal audits has evolved fromoperational audits to encompass management audits. The
management structure now includes an executive framework

A new audit firm was appointed at the Annual Shareholders’centered around the Global Executive Committee (Global

Meeting held in March 2023. The decision regarding theEXCO), resulting in clear management policies and thecandidate for the audit firm is based on a resolution of theimplementation of activities in various regions in alignment

Audit Committee. Many companies tend to use the samewith these policies. The Audit Committee is committed toaudit firm for an extended period, as the auditor must

advancing and strengthening auditing practices in line withbecome familiar with and understand the business operations.

the Company’s management transformation and the

In Bridgestone’s case, the Company highly valued thecorresponding evolution of governance.

capabilities, qualifications, and approach of the previous
audit firm, and had entrusted them with conducting audits
for 22 years. However, at the same time, the Audit
Committee has had extensive discussions about how longto continue with the same audit firm, considering aspects
of independence, including whether it is independence inappearance alone. Taking into account the rotation system
of audit firms in various overseas countries, and as a matterof rule within the Audit Committee itself, we decided toincorporate a process that involves receiving proposals frommultiple audit firms at regular intervals and conducting
comparative assessments. This deliberation process led us
to the decision made this time. The transition between theoutgoing and incoming auditors has been going smoothly,
and we are satisfied with the progress.

Bridgestone 3.0 Journey 2023 Integrated Report101How we get there |Highlights of ESG Activities

Governance

Board of Directors and Executive Officers
As of March 2023

Board of Directors

Shuichi ISHIBASHI

Masahiro HIGASHI

Scott Trevor DAVIS

Yuri OKINA

Kenichi MASUDA

Kenzo YAMAMOTO

Member of the Board
Global CEO and
Representative Executive
OfficerMember of the Board
Joint Global COO and
Representative Executive
OfficerMember of the Board*
Chairperson of the Board of
Directors
Member of the Nominating
Committee
Member of theCompensation Committee
Chairperson of theGovernance Committee

Member of the Board*
Chairperson of theCompensation Committee
Member of the Nominating
Committee

Member of the Board*
Chairperson of theNominating Committee
Member of theCompensation Committee
Chairperson of theCompliance Committee

Member of the Board*
Chairperson of the Audit
Committee

Yojiro SHIBA

Yoko SUZUKI

Yukari KOBAYASHI

Yasuhiro NAKAJIMA

Akira MATSUDA

Tsuyoshi YOSHIMIMember of the Board*
Member of the Audit
Committee

Member of the Board*
Member of the Audit
Committee

Member of the Board*
Member of the Audit
Committee

Member of the Board*
Member of the Audit
Committee

Member of the Board
Member of the Audit
Committee

Member of the Board
Member of the Audit
Committee* Independent Director

Executive Officers

Shuichi ISHIBASHI

Masahiro HIGASHI

Paolo FERRARI

Masato BANNO

Global CEO and
Representative Executive
Officer(*)

Representative Executive Officer
Joint Global COO
Chairman of Bridgestone Asia
Pacific Pte. Ltd.
Concurrently responsiblefor BSJP
Chairman and Representative
Board Member of Bridgestone
Tire Solution Japan Co., Ltd.
Chairman and Representative
Board Member of Bridgestone
Cycle Co., Ltd.
(*)

Executive Officer
Joint Global COO
Global CSO (Global Chief
Business Solutions Officer)
BSAM Member of the Board,
CEO and President(*)

Senior Vice President andExecutive Officer
Global CTO (Global Chief
Technology Officer)
Responsible for Technology,
Quality Management(*)(*) Global Executive Committee Member102Who we are

Where we are going

How we get there

Data

Stakeholder Engagement
The Bridgestone Group prioritizes engagement with stakeholders as it strives to understand their perspectives and to share its
point-of-view. Learnings from stakeholders help inform the Group’s business activities as it continues to sustainably grow its business.

Stakeholder Group

Main issues / Key topics• Developing appealing
products/services

Customers• Providing timely response
and support• Providing appropriate
information• Effectively managing
customer information

Shareholders andInvestors

Business
Partners• Providing appropriate andtimely information• Maximizing corporate value• Ensuring fair and impartial
transactions• Communicating Sustainable
Procurement Policy

Uses and methods/opportunities of main dialogues
 oosting recognition of the Group’s activities and generating opportunities
B
for co-creation
Reflecting customer feedback in products and services• Responses to Customer Communication Center inquiries• Bridgestone Innovation Park, Bridgestone Innovation Gallery• Communicating information through websites and social media and exhibiting at
events and exhibitions• Market research/Customer satisfaction survey
 ialogue-based IR activities and timely, appropriate information disclosureDReflecting shareholder and investor perspectives/feedback in management
and IR activities• Annual Shareholders’ Meeting• Financial results review meetings/Mid Term Business Plan (2021–2023) andprogress updates• Individual meetings with investors, and ESG dialogue with investors• Formulating and hosting a briefing on the 2030 Long Term Strategic Aspiration
 romoting dialogue and mutual understanding to achieve sustainableP
procurement
Encouraging dialogue to improve on-site environments
Capacity building and supporting improved yields and income throughdialogue with and education for smallholder farmers• Daily procurement activities• Procurement policy explanatory forums/Sustainability seminars• Global Sustainable Procurement Policy rollout• Respecting human rights• Promoting diversity andinclusion, including diverse
working styles

Employees• Developing and utilizing
human resources• Promoting occupational
health and safety, and healthand productivity
management• Facilitating mutual
understanding between
management and labor• Contributing to local
communities

Local
Communities,
NGOs

Government
Agencies,
Industry
Organizations
and Educational
Institutions• Preserving local
environments• Supporting activities inlocations with the
Bridgestone Group
operating sites• Contributing to thedevelopment of a safe andreliable mobile society• Supporting educational
activities• Participating in industry
economic impact studies andsupply chain assessments

Improving engagement through mutual understanding with employees
Objectively analyzing survey results and formulating and implementing actionplans to improve workplace environments based on dialogue• Employee engagement survey• Personnel evaluation systems and career development consultation• Meetings between labor and management• In-house newsletters and intranet• Town hall meetings• Bridgestone Group Awards and other reward systems

 nderstanding issues in local communities, supporting solutions, andUbuilding trust• Disaster relief, reconstruction support, donations, and social contribution activities• Environmental and safety educational activities• Hosting and collaborating with local events, factory tours, etc.
• Dialogue and collaborations with NGOs

 romoting and supporting the formulation of industry standards
P
Revising policy guidelines in line with social and industry trends• Industry organizations: Participation in global initiatives on sustainability and theenvironment such as the Tire Industry Project (TIP) operated under the World
Business Council for Sustainable Development (WBCSD), the Global Platform for
Sustainable Natural Rubber (GPSNR)• Communication, coordination, and support of industry-government-academia
partnerships• Dialogue with government representatives

Bridgestone 3.0 Journey 2023 Integrated Report103How we get there |Highlights of ESG Activities

Governance

Stakeholder Engagement

Examples of Dialogue

An Active Role in Industrial Initiatives
The Group takes the environmental and social impact of the ES 2023: Showcasing the Vision forC
Sustainable Mobility
CES is the world’s preeminent gathering place for market

tire industry seriously and play a leading role in building
knowledge and establishing industry standards to better
address the challenges facing the industry as a whole.

leaders in technology, and Bridgestone was proud to returnto the show floor in 2023 to collaborate with like-mindedthought leaders and immerse attendees in our vision for
creating a more sustainable future through mobility
solutions.
The delivery of sustainable mobility requires eachstage of the tire and rubber product’s life—from
manufacturing and ownership to maintenance and end-oflife material circularity—to consider the most responsible
processes and tools for each step. At CES, Bridgestonedemonstrated its vision of vehicle management experience
with the ultimate goal of carbon-neutral transportation in
the future.
Throughout the show, the Group met with current andpotential partners and customers in order to discuss ways theGroup can support their current business needs through ourThomas J. Higgins

Global Chief Business Strategic
Officer, Bridgestone Corporation

Bridgestone actively engages in pro-competitive
regional and global associations and projects tounderstand and address issues that can improve thesustainability of the tire industry. We have leadershiproles in the United States Tire Manufacturer’s
Association (USTMA), the European Tyre and Rubber
Manufacturer’s Association (ETRMA), the Japanesesustainable solutions, while also collaborating on

Tyre Manufacturer’s Association (JATMA) and theopportunities to lead the future of sustainable mobility

World Business Council for Sustainable Development’s

together, providing both social and customer value.

(WBCSD) Tire Industry Project (TIP), as well as many

Bridgestone plans to continue to share, collaborate, learn andothers. Our goal is to co-create collective solutions thatco-create in order to continue to lead the future of mobility.

can effectively and efficiently enhance the positive
impact of our industry on society. We continuously
support industry and regulatory initiatives aimed at
establishing globally harmonized procedures toenhance the sustainability and safety performance oftires. For example, Bridgestone is currently contributing
to the definition of international testing methods formeasuring tire abrasion, to support reducing thegeneration of tire particles while vehicles are in motion.

104

Who we are

Where we are going ialogue-based IR Activities and Timely,
D
Appropriate Information Disclosure

How we get there

Data

Through these organizations, the Group is improving
our dialogue with institutional investors on our approach to“Toward 2050, Bridgestone continues to provide social value

sustainability issues and the management strategies that will

and customer value as a sustainable solutions company.”

allow us to achieve sustainable growth alongside ourTo achieve this vision, the Group is moving forward with thecustomers and society.
In June 2022, the Group published our first integrated

implementation of medium- to long-term businessstrategies which places sustainability at the core ofreport. This ensured timely and appropriate information

management. Through quarterly financial briefings anddisclosure through unique value creation stories that balanced

other platforms, the Group provides regular reports on thesustainability and business. As a result, in addition to ESG

progress of our medium- to long-term business plans.

perspective, the Group was able to exchange ideas with

Further, the Group understands that building mutual

institutional investors on their requests and expectations as

relationships of trust with analysts and investors is of

the Group seeks to grow as a sustainable solutions company.

paramount importance. The Group therefore takes advantage

The requests and expectations of these institutional investorsof the ideas and opinions that the Group obtains throughwere relayed back to management, leading to discussions on

dialogue with these analysts and investors in our

how to link their ideas to future value creation, as well as

management strategies and IR activities.

concrete action.
The Group also received positive feedback on our IR

At Bridgestone, in addition to Corporate Sustainability
division, which promotes the integration of our management

improvements and comments on future expectations for the

strategies, business activities and corporate culture with

Company through individual investor meetings. The Groupsustainability issues the Group is facing, the Group newly sets

believes that positive, objective feedback from external parties

up the IR Financial Affairs Reporting and Planning Section tohelps us to develop as a strong and resilient Bridgestone.

strengthen the organizations structure to respond toincreasing investors interests in sustainability related issues.

External Evaluation in the Sustainability Field
The Bridgestone Group’s sustainability efforts have been highly
evaluated externally.
• Dow Jones Sustainability World Index: Selected as acomponent of the Dow Jones Sustainability World Index.
• Dow Jones Sustainability Asia Pacific Index: Selected as acomponent of the Dow Jones Sustainability Asia Pacific Index
for the 13th consecutive year.
• FTSE4Good Index Series: Selected as a constituent stock of the
FTSE4Good Index Series for the fifth consecutive year
• MSCI: Received as AA rating from the MSCI.
• CDP
Received the ratings below for our outstanding efforts.
- CDP Climate Change: A- CDP Water Security: A- CDP Supplier Engagement: A-

Bridgestone 3.0 Journey 2023 Integrated Report

105

Data

Financial Data
Consolidated Operating Results

Japanese GAAP1

FY2012FY20133,039.7
285.9
9.4
171.6
5.6

Revenue
Adjusted operating profit
Adjusted operating profit margin
Profit attributable to owners of parent
Profit attributable to owners of parent margin

FY2014

3,568.0
438.1
12.3
202.0
5.7

FY2015

3,673.9
478.0
13.0
300.5
8.2

3,790.2
517.2
13.6
284.2
7.5

1. Until 2018 (J-GAAP): Net sales, operating profit, profit attributable to owners of parent
2. In accordance with the decisions of business transfer, the Company has classified its US building materials business, anti-vibration rubber business and chemical products solutions business as

Consolidated Operating Results by Segment1

Japanese GAAP4FY2012

Japan
Revenue
Adjusted operating profit
Adjusted operating profit margin
Americas
Revenue
Adjusted operating profit
Adjusted operating profit margin
Europe, Russia, Middle East, India and Africa (EMIA)2
Revenue
Adjusted operating profit
Adjusted operating profit margin
China, Asia-Pacific (CAP)3
Revenue
Adjusted operating profit
Adjusted operating profit margin

FY2013

FY2014FY2015

1,218.7
158.4
13.0

1,270.3
219.5
17.3

1,264.9
210.1
16.6

1,187.8
197.4
16.6

1,330.9
92.3
6.9

1,651.9156.4
9.5

1,768.1
180.2
10.2

1,941.6
222.5
11.5

348.8
1.8
0.5

423.3
2.0
0.5

439.2
20.3
4.6

421.7
21.4
5.1

699.9
55.7
8.0

862.7
80.2
9.3

841.5
66.8
7.9

838.0
68.2
8.1

1. Including intersegment transactions
2. Segment information: The Group changed its segment classifications in fiscal 2016. Until 2015 Europe; In 2016 Europe, Middle East and Africa; In 2017 and 2018 Europe, Russia, Middle
3. Segment information: The Group changed its segment classifications in fiscal 2016. Until 2015 China, Asia Pacific, Middle East, Africa and Russia; In 2016 China, Asia Pacific and Russia;
4. Until 2018 (J-GAAP): Net sales, operating profit
5. In accordance with the decisions of business transfer, the Company has classified its US building materials business, anti-vibration rubber business and chemical products solutions business as

Financial Position

Japanese GAAP4FY2012FY20133,039.7
1,622.4
1,417.3
45.2
—
13.7

Total assets
Total liabilities
Total equity
Ratio of equity attributable to owners of parent to total assets1
ROIC2
ROE3

FY2014

3,577.0
1,714.0
1,862.9
50.5
—
12.7

FY20153,960.9
1,814.2
2,146.6
52.4
—
15.5

3,795.8
1,513.8
2,282.0
58.2
—
13.3

1. Ratio of equity attributable to owners of parent to total assets = Total equity attributable to owners of parent ÷ Total assets
2. ROIC (Return on invested capital) = Adjusted operating profit after tax ÷ Invested capital
3. ROE (Return on equity) = Profit / ((Previous year-end total equity + Current year-end total equity) ÷ 2) x 100
4. Until 2018 (J-GAAP): Total assets, liabilities, net assets and equity ratio* * Equity (Net assets - Share acquisition rights - Non-controlling interests) ÷ Total assets
5. In accordance with the decisions of business transfer, the Company has classified its US building materials business, anti-vibration rubber business and chemical products solutions

Cash Flows

Japanese GAAPFY2012FY2013404.4-237.9
166.5

Cash flows from operating activities
Cash flows from investing activities
Free cash flow*

FY2014471.7-265.2206.5

FY2015428.6-305.6122.9

553.9-233.3320.5* Free cash flow = Cash flows from operating activities + Cash flows from investing activities

Capital Expenditures, Depreciation andAmortization, and R&D Expenses
Capital expenditures
Depreciation and amortization
Ratio of depreciation and amortization to revenue
R&D expenses
Ratio of R&D expenses to revenue

Japanese GAAPFY2012FY2013

245.6
155.0
5.1
82.8
2.7

FY2014

274.9
176.1
4.9
89.0
2.5

296.3
188.3
5.1
94.1
2.6

FY2015
253.5
202.3
5.3
94.9
2.5

* In accordance with the decisions of business transfer, the Company has classified its US building materials business, anti-vibration rubber business and chemical products solutions business

Cash Dividends
Dividend per share106

FY2012FY201332

FY201457

100

FY2015130

Who we are

Where we are going

How we get there

Data

IFRS

FY2016
3,337.0
449.5
13.5
265.5
8.0

FY20173,643.4
419.0
11.5
288.2
7.9

FY2018FY20193,650.1
402.7
11.0
291.6
8.0

3,507.2
343.1
9.8
240.1
6.8

FY2020

FY202122,994.5
222.9
7.4
-23.3
-0.8

3,246.1
394.3
12.1
394.0
12.1

Unit

FY20222
4,110.1
482.6
11.7
300.4
7.3

Billion JPY
Billion JPY%
Billion JPY%

discontinued operations from 2021. Accordingly, revenue and adjusted operating profit show figures for continuing operations and exclude revenue and expenses of the three businesses.

IFRS

FY2016FY2017FY2018FY2019FY2020

FY20215Unit

FY20225

1,080.6
150.6
13.9

1,147.8
160.2
14.0

1,170.5
153.5
13.1

918.1
108.8
11.9

762.6
64.6
8.5

873.0
117.0
13.4

1,036.3
140.3
13.5

Billion JPY
Billion JPY%

1,645.3
203.1
12.3

1,776.5
187.5
10.6

1,758.2
177.8
10.1

1,661.7
184.3
11.1

1,407.9139.9
9.9

1,454.6
190.6
13.1

1,988.0
251.2
12.6

Billion JPY
Billion JPY
%

477.1
27.7
5.8

559.8
13.6
2.4

596.1
11.0
1.9

640.1
15.0
2.3

564.3
-17.6
-3.1

693.9
42.1
6.1

870.0
66.4
7.6

Billion JPY
Billion JPY
%

621.7
62.5
10.1

648.8
62.9
9.7

633.8
56.7
9.0

462.8
36.2
7.8

394.6
24.6
6.2

386.9
42.0
10.9

457.0
39.9
8.7

Billion JPY
Billion JPY%

East and Africa; Since 2019 Europe, Russia, Middle East, India and Africa
In 2017 and 2018 China and Asia Pacific; Since 2019 China, Asia-Pacific (excluding India)
discontinued operations from 2021. Accordingly, revenue and adjusted operating profit show figures for continuing operations and exclude revenue and expenses of the three businesses.

IFRS

FY2016
3,716.0
1,370.1
2,345.8
61.5
—
11.8

FY2017
3,959.0
1,556.3
2,402.7
59.2
—
12.5

FY20183,840.2
1,404.1
2,436.1
61.9
—
12.4

FY20194,277.0
1,874.5
2,402.5
54.9
7.4
10.0

FY2020

FY202154,189.3
1,994.0
2,195.3
51.3
5.5
-1.0

4,574.9
1,899.5
2,675.4
57.5
9.0
12.9

Unit

FY20225
4,961.8
1,949.4
3,012.5
59.8
9.4
10.9

Billion JPY
Billion JPY
Billion JPY%%%

business as discontinued operations from 2021. Accordingly, ROIC and ROE show figures for continuing operations and exclude revenue and expenses of the three businesses.

IFRS

FY2016444.5-178.2266.2

FY2017418.1-200.7217.3

FY2018360.9-243.0117.8

FY2019505.0-261.9243.2

FY2020

FY2021526.9-155.4
371.6

281.5
131.7
413.2

Unit

FY2022268.5-338.0-69.5

Billion JPY
Billion JPY
Billion JPY

IFRSFY2016
194.1
188.0
5.6
95.4
2.9

FY2017
234.8
200.3
5.5
99.7
2.7

FY2018
268.4
200.4
5.5
103.5
2.8

FY2019
328.2
269.7
7.7
106.2
3.0

FY2020
271.9
267.5
8.9
95.2
3.2

FY2021*
262.0
245.9
7.6
95.5
2.9

Unit

FY2022*
317.1
282.1
6.9
112.2
2.7

Billion JPY
Billion JPY%
Billion JPY%

as discontinued operations from 2021. Accordingly, depreciation and amortization, and R&D expenses show figures for continuing operations and exclude expenses of the three businesses.

FY2016140

FY2017150

FY2018160

FY2019160

FY2020110

FY2021170

FY2022
175

Unit
JPY

Bridgestone 3.0 Journey 2023 Integrated Report

107

Data

Non-Financial Data
All of the Bridgestone Group’s environmental data and a portion of its social data in FY2022 are verified by SOCOTEC Certification
Japan, a third-party institution, to ensure the accuracy and transparency of this information. See the Group’s ESG Datasection of its

website for complete information including GRI-listed items.
ESG Data
www.bridgestone.com/responsibilities/esgdata/

LEGEND

FY2022 data items in bold are those for which assurance is provided by third party institution.

Environment-related Data1

FY2018FY2019FY2020

FY2021

FY2022

Unit

5,233

5,051

4,150

4,611

4,389

Thousand tonnes

Materials
Amount of raw materials used

698

698

722

704

936

Million JPY/Thousand tonnes(6.29)(6.37)(6.98)(6.12)(7.05)(Thousand USD/tonnes)

Ratio of recycled and renewable material

—

—

37

37

38

%

(Ratio of renewable material)3

—

—

26

26

26

%

(Ratio of recycled material)3

—

—

11

11

12

%

Total energy consumption (Manufacturing sites &Non-manufacturing sites) 4, 5

46,01445,00238,31142,72645,132Thousand GJ

Energy consumption (fuel) 5, 6

26,881

26,192

22,032

24,66825,959Thousand GJ

Energy consumption (purchased electricity)5

4,929

4,852

4,192

4,654

5,012

Thousand MWh

Energy consumption (purchased steam)5

1,429

1,382

1,191

1,248

1,111

Thousand GJ

Total energy consumption (renewable)5

885

953

1,767

2,847

4,702

Thousand GJ

45,13044,04936,54539,87940,429Thousand GJ

Total water withdrawal7

71,30368,30363,744

66,744

68,039Water withdrawal (surface water)

2,926

3,131

2,856

2,729

3,217

Water withdrawal (groundwater)

10,312

9,708

8,480

9,086

8,942

Water withdrawal (water supply, industrial water)

18,384

17,61916,137

17,24916,954

Water withdrawal (seawater)

39,68137,84436,27137,67838,927

Total water withdrawal by manufacturing facilities inwater stress areas8

3,495

3,208

2,873

2,981

2,712

Resource productivity2
3

EnergyTotal energy consumption (non-renewable)5
Water

Thousand m3

1. Figures represent all Bridgestone Group facilities for the period of January 1 to December 31 for each year referenced. Includes some estimates.
2. Sales per raw material used.
3. Within total material weight for tire products including tire casing for retreading.
4. Calculation method: Fuel consumption + Purchased electricity + Purchased steam + Solar power generation, etc. - Electricity sold.
5. The scope of FY2022 data are Manufacturing and Non-Manufacturing sites, The scope of FY2018-FY2021 data are only Manufacturing sites.
6. Includes fuel used for in-house power generation.
7. Water withdrawal does not include the recycled water from third parties and rainwater.
8. Manufacturing facilities that have water-related risks due to their locations in areas with the risk of deterioration of fresh water resources in terms of quantity and quality.

108Who we are

Where we are going

Environment-related Data1

How we get there

Data

FY2018FY2019FY2020

FY2021

FY2022

Unit

Greenhouse gas emissions at manufacturing sites(CO2 Scope 1)

1,868

1,807

1,504

1,722

1,711

Thousand t-CO2

Greenhouse gas emissions at manufacturing sites(CO2 Scope 2, market-based)

2,263

2,139

1,659

1,664

1,370

Thousand t-CO2

Greenhouse gas emissions at manufacturing sites(CO2 Scope 1 + Scope 2, market-based)

4,131

3,946

3,162

3,387

3,081

Thousand t-CO2

Greenhouse gas emissions at non-manufacturing
sites (CO2 Scope 1 + Scope 2, market based)

—

—

—

—

211

Thousand t-CO2

Greenhouse gas emissions (CH4 and N2O Scope 1 +Scope 2)

17

16

14

16

14

Thousand t-CO2e

125,110

110,378

100,097

113,421

109,688

Thousand t-CO2

NOx emissions10

2,041

1,969

1,629

1,839

1,875

TonnesSOx emissions10

937

850

603

588

500

TonnesVolume of waste generated11

352

359

289

289

285

Thousand tonnes

Volume of recycled waste12

311

308

259

272

268

Thousand tonnes

Recycling waste rate13

88

86

90

94

94

%

Volume of waste to landfill

41

52

30

17

17

Thousand tonnes

Volume of regulated hazardous waste generated14

20

21

19

20

25

Thousand tonnes

98.7

98.1

98.0

99.3

100

%

EmissionsGreenhouse gas emissions (Scope 3)9Waste

Environmental Management
Sites with ISO 14001 certification15

9. Category 8 and 13 are excluded from the 15 categories in Scope 3 of the GHG protocol.
10. Emissions from combustion of fossil fuels estimated based on fuel consumption data and corresponding emission factors.
11. Total volume of waste including non-hazardous waste and regulated hazardous waste.
12. Calculation method: Volume of waste generated - Volume of waste to landfill.
13. Calculation method: Volume of recycled waste / Volume of waste generated.
14. Calculated based on laws of each country. The calculation scope of regulated hazardous waste is partially expanded from 2022.
15. Within 113 sites that are targeted for ISO 14001 certification (as of December 31, 2022).

Bridgestone 3.0 Journey 2023 Integrated Report

109

Data

Non-Financial Data

Social-related Data

Japan1

Americas38,389Number of employees2

Europe, Russia, Middle East,
India and Africa

China,
Asia Pacific

21,591

19,08450,198

Total

Unit

129,262

Persons

Total
mgmt.
positionsOtherstaff and
positionsUnit

1. “Japan” includes “Japan”, “Other”, and “Company-wide (common)” segments as presented in the Annual Securities Report.
2. As of December 31, 2022.

Socialrelated Data

Ratio offemaleemployees1

Segment

Total

Top
mgmt.
positions2

Mgmt.
positions3

Juniormgmt.
positions4Japan5

12.2

6.1

4.3

6.4

5.3

13.6

Americas

12.6

25.5

23.2

10.4

14.8

12.3

Europe, Russia, Middle
East, India and Africa

12.6

15.1

14.6

18.8

17.6

11.8

China, Asia Pacific

9.7

12.6

19.0

23.6

22.8

8.7

Total

12.0

10.7

11.6

12.5

12.1

12.0

%

1. Data as of December 31, 2022 from 128,811 employers and employees (99.4% of total workforce).
2. Management positions with a reporting line no more than two levels below the CEO in each company.
3. All managerial position excluding “Top management positions” and “Junior management positions.”
4. First-line managers, junior managers and the lowest level of management within a company’s management hierarchy.
5. “Japan” includes “Japan”, “Other”, and “Company-wide (common)” segments as presented in the Annual Securities Report.

Social- and Governance-related Data

Global Executive
Committee members

FY2018FY2019FY2020

FY2021

FY2022

Total

9

14

11

11

12

Persons

Number of foreign members

5

7

6

6

6

Persons

55.6

50.0

54.5

54.5

50.0

%

Total

52

60

51

16

20

Persons

Number of foreign members

10

11

9

5

7

Persons

Percentage of foreign members

19.2

18.3

17.6

31.3

35.0

%

Sites with ISO 9001 certification

99.3

99.4

100

99.2

100

%

Balance at beginning of year

—

6,308

8,459

9,040

6,797

Million JPY

Decrease (used)

—

4,186

11,371

6,030

5,469

Million JPY

Lost-time injury frequency rate of
employees and temporary staff

—

2.86

2.57

2.75

2.74

Lost-time injury frequency rate ofcontractors

—

1.862

2.31

0.79

0.62

Serious injury rate of employees andtemporary staff

—

0.09

0.04

0.08

0.08

Serious injury rate of contractors

—

0.292

0.19

0.11

0.06

Occupational illness frequency rate of
employees and temporary staff

—

—

0.503

1.33

0.68

Percentage of foreign members

Executive officers,
vice presidents andsenior officers1

Product safety
Provision for productwarranties

Occupational safety

Unit

—

Data as of December 31 for each year referenced.
1. Including officers of Bridgestone subsidiaries. Data for 2021 and 2022 are the number of vice presidents and senior officers only, while data for 2018, 2019, and 2020 include other officers.
The change is due to the elimination of the executive officer system in 2020.
2. Figures are for the six months from July to December 2019.
3. Figures are for the six months from July to December 2020.

110

Who we are

Where we are going

How we get there

Data

Corporate and Investor Information■Corporate Name
Bridgestone Corporation■Number of Shares Authorized
1,450,000,000 (As of December 31, 2022)■Established■Number of Shares Issued

1931

713,698,221 (As of December 31, 2022)■Head Office■Minimum Trading Units

1-1, Kyobashi 3-chome, Chuo-ku,
Tokyo 104-8340, Japan

100 shares■Paid-in Capital

Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku,
Tokyo 100-8233, Japan■Transfer Agent

126,354 million JPY (As of December 31, 2022)■Number of Employees
129,262 (Consolidated, as of December 31, 2022)■Independent Auditor■Technology Centers

Deloitte Touche Tohmatsu LLC(KPMG AZSA LLC from March 28, 2023)

Japan: Tokyo and Yokohama
United States: Akron, Ohio
Italy: Rome
China: Wuxi
Thailand: Pathum Thani■Stock Exchange Listings
Tokyo, Fukuoka■Credit Ratings■Shareholder Composition(As of December 31, 2022)(As of December 31, 2022)
Individuals and others 21.3%

Rating Agency Name

Long-term
RatingMoody’s Japan K.K. (Moody’s)

A2Standard & Poor’s (S&P)

A

Foreign corporations, etc. 25.6%

Rating and Investment Information, Inc. (R&I)

AA+

Japan Credit Rating Agency, Ltd. (JCR)

AA+

Financial instruments
business operators 7.7%
Other corporations 14.7%

Financial institutions 30.7%■Common Stock Price Range(Tokyo Stock Exchange)
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

High

2,245

4,025

4,459

5,182

4,463

5,605

5,515

4,734

4,082

5,467

5,509

Low

1,602

2,248

3,328

3,754

3,089

3,973

3,906

3,888

2,862

3,307

4,042

Unit
JPY

■Common Stock Price Index*(Relative to Nikkei Stock Average)
Common Stock Price Index

400%

Nikkei Stock Average

300%

200%

100%
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

* Relative value is based on 100 as of January 4, 2012.

Bridgestone 3.0 Journey 2023 Integrated Report111Bridgestone 3.0 Journey
2023 Integrated Report

Bridgestone Corporation
https://www.bridgestone.com/contact/form_rd_04.html
IR Department
Corporate Sustainability Division
1-1, Kyobashi 3-chome, Chuo-ku, Tokyo 104-8340, Japanwww.bridgestone.com

June 2023