Materiality (Key Issues)
Materiality Identification Processof
1 Selection
materiality candidates

and analysis
2 Evaluationof materiality candidates

of appropri3 Assessment
ateness by managementof
4 Identificationmateriality

5 Review

Selection of issues to beconsidered by sustainability
implementation memberswith reference to social
issues, market and socialtrends, GRI standards, etc.

Analysis and evaluation
based on our materiality
and the materiality of ourstakeholders

Interviews with outside
directors and others on
identified material issues,
including identification
processes, to evaluate
the appropriateness ofmateriality

Selection of priority topics
to be addressed throughdeliberations by theManagement Council

Review of initiatives
linked to corporate
policies, confirmation at
Sustainability Council,and periodic review ofmateriality

Key Sustainability Issues(Materiality)Responding to the transformationof the automobiles
Reducing traffic fatalities forrealizing a safe, secure, andcomfortable mobility society

Creating new businesses
utilizing core technologies

Main Initiatives(Social Issues/Opportunities and Risks to be Addressed)
Development of new products for BEVs

P.26

Expanding sales to BEV leading markets and OEMs

P.25

Development and sales expansion of airbag products
to deliver safety and comfort to all P.27
P.48

Expanding new businesses by leveraging experience innew business development P.34
Deployment of corporate venture capital (CVC)

P.37

Realization of smart factories (double productivity)

Creating a decarbonizedsociety by reducing CO2emissions and greenhousegas emissions
Creating a recycling-oriented
society through waste
reduction and water risk
reduction

Living together with local
communities
Use of diverse humanresources and respect forhuman rights

Corporate governance as acompany with integrity
Ensuring compliance

20P.38Creating environmentally-friendly businesses byleveraging our knowledge in the rubber and plastics
P.33
fields P.29
Globally integrated operations to achieve carbon
neutrality P.54
Contribution to a recycling-oriented society(Car to Car recycling) P.58

Initiatives rooted in local communities(local self-reliant management, Center of Excellence)Diversity & inclusion P.62
Safety and health management P.68
Strengthening quality and supply chain to support
sustainability management P.65
Responding to geopolitical and economic risks P.82

Strengthening of BCP resilienceEnhancing of internal controls

P.84

P.70

P.42

About Toyoda Gosei

Value Creation Story

Value Creation Strategy

Foundation of Value Creation

KPIs and Medium- to Long-term Targets (FY2030)

Data

Relevant SDGs
Most Important Areas

Target Setting Formula
BEV-related share of revenue: 40% BEV production volume/Car production volume* Based on S&P Global Information

Airbag production volume: +1.5 fold increase (compared to FY2022)

Achieving a safer, more secure, andmore comfortable mobility societyBased on cash allocation(Allocating funds mainly for R&D, human resources, and strategic
investments with the aim of expanding fields that contribute to safety,Solving social issues by creating
innovations

comfort, and decarbonization)

Scopes 1 and 2: Carbon neutralWaste volume (total) [non-consolidated]: −50% (compared to FY2012)
Scope 3: −27.5% (compared to FY2019)Waste volume (unit) [overseas]: −55% (compared to FY2015)
Renewable energy adoption rate: 100%
Percentage of employees receiving training on human rights: 100%
Employee engagement affirmation rate [non-consolidated]: 75%
Ratio of local executives (vice presidents and above) at overseas locations:
60% or more
Number (ratio) of female managers [non-consolidated]: 100 (8.8%)
Ratio of mid-career hires in management positions [non-consolidated]:
30% or more
Number of serious accidents: 0
Percentage of suppliers implementing sustainability activities: 100%

Number of major legal violations: 0
Major cyber security incidents: 0

Realization of a decarbonized,
recycling-oriented society

Sustainable growth throughdiverse workforce

Fair and transparent corporate
governance system

T OYODA GOSEI REP OR T 20 2321