Building a Foundation for Sustainable Value Creation
Building a Foundation for Sustainable Value Creation
Bridgestone is working to establish its unique Sustainability

foundation of our Sustainability Business Model andBusiness Model by incorporating sustainability into theachieved results that exceeded the goals. In 24MBP, we

corporate strategy and Mid Term Business Plan. Our

promote the integration of sustainability into our business

Sustainability Business Model links our business with thescenario, interconnecting our business activities withrealization of carbon neutrality and a circular economy

sustainability initiatives, and building a foundation for

across the entire value chain, from “produce and sell” andsustainable value creation as we move toward a sustainable“use” of products to their “renewal” to raw materials.

growth stage.

In 21MBP, we promoted activities that form theProduce and sell—Premium tire businessCore businessSupport mobility
with peace ofmind and safety

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

Inc reasea nd a f C O
for 2 reesta mt

CO2 reduction in mfg. fields

R&D

Procurement

Production

Sales

Tire usage

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CO2 reduction in manufacturing fields

Contribution to
CO2 reduction atcustomers’ usageg c o ll e c t i o n

Renew—Recycle business

Use—Solutions business

Circular Economy

Carbon Neutrality

Growth business

2026

Recycled & renewable material ratio
39% above2026

CO2 emission reduction (Scope 1, 2)
reduce more than 50% (vs 2011)

2050

100% sustainable materials

2050

Carbon neutrality

Nature Positive*
Focus on “initiatives for sustainable use of natural rubber & water resources”
which are directly related to our business
Evolving to a regenerative business model* It means halting and reversing the loss of biodiversity and natural capital in order to put nature on the path to recovery. The intent behind is to reduce the impact of businessactivities on biodiversity and natural capital, maintain and restore nature’s bounty, and transform socio-economic activities for sustainable use of natural capital.

74

Progress and Targets of Initiatives, Sustainable Value Creation Linked toBusiness Shaping Scenarios
Progress of Initiatives

account the increase in CO2 emissions associated with the
expansion of production and sales volume. We will

Bridgestone places sustainability at the core of our

promote stable procurement of renewable energy,

management and business, and accelerate transformation

improve productivity in conjunction with BCMA, andwith the aim of achieving sustainable growth as a company

steadily improve energy intensity. This also will lead towhile contributing to the realization of a sustainable

strengthening our earning power.

society. We are working to establish a Sustainability
Business Model that links our business model with efforts
to achieve a circular economy and carbon neutrality acrossthe entire value chain. We aim to create both social value

Change in ratio of renewable energy (electricity)
100%
2030
Challenge forand customer value through our business and achieve awin-win-win relationship among society, our customers,
and Bridgestone. We have also promoted initiatives toward

80%

More thannature positivity since 2023 and have been evolving into a

Result for 2023

60%

more regenerative business model.

100%

Goal for 2026

69％

70%

50%

Goal for 2023

40%

Initiatives toward Carbon Neutrality
By 2030, Bridgestone has set clear targets for reducing its

20%

total CO2 emissions (Scopes 1 and 2) by 50% compared with
2011, and to realize carbon neutrality by 2050. In 2023, we

0%
2019

achieved a 57% reduction, which exceeds the 2030 target.
Result in 2023
the ratio of

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

2020

2021

2022

2023

2024

2025

2026

2030 (FY)

Transition plan for carbon neutrality

57%

Mid Term Business Plan
(2021-2023)

Mid Term Business Plan
(2024-2026)■ Accelerated the introductionof renewable energy■ Stable procurement of renewable energy■ Technology development &verification towards Scope 1 reduction■ Achieved CO2 emission reduction
target level

CO2 emissions
in a business-as-usual scenario

A major contribution to this significant reduction was
the increase in the ratio of renewable energy (electricity).
In each global region, we are promoting the installation ofContinuous improvementof energy efficiency
100%

solar panels and the shift of electricity purchased from2026

outside sources to electricity derived from renewableenergy sources. We have achieved a ratio of 69% in

50%

2030
targetBring forward
the target year

reduction

reduction

Increase of renewableenergy (electricity) ratio

50%

Transition to
low-carbon fuels/
electrification of
manufacturing process50%

renewable energy use, in comparison to the 2023 target ofprevious year. With a plan to achieve over 70% by 2026, we
will work toward the sustainable use of renewable energy.

Innovation of
manufacturing
process, etc.

Setting next
mid-term target

50%, which was a significant increase from the 26% in the

2050
2011

2026

2030

Carbonneutrality

In order to achieve carbon neutrality by 2050, it isnecessary to balance business growth and CO2 emissions
reduction at an even higher level, while taking into

Bridgestone 3.0 Journey 2024 Integrated Report75Building a Foundation for Sustainable Value Creation

Bridgestone is working to contribute to CO2 reduction

Result in 2023

across the entire value chain, from “produce and sell”, “use”
to their “renewal” to raw materials. Our goal for 2030 is to

Ratio of materials
using recycled andrenewable resources

contribute to the reduction of CO2 emissions (base year:2020) through the entire lifecycle of our products, services,
solutions and recycle by at least five times the amount of

39.6%

CO2 emitted by our own production activities (Scope 1 and
2). In 2023, the amount of reduction contribution increased

To expand and diversify recycled and renewable materials,

to 1.9 times the amount of emissions through rolling

we will strengthen our efforts through motorsports, a

resistance improvement in premium Dan-Totsu products“mobile laboratory”, such as providing race test tires using

and proposals for optimal operating routes for mobility

guayule as a raw material for the NTT INDYCAR® SERIES insolutions such as Webfleet and Azuga. Our 24MBP’s goal is

the United States, and we will gradually expand to tires forto contribute to reduction of CO2 emissions by more thanthe markets.

three times of our CO2 emissions by 2026.
We are also working to strengthen supplier engagement
to reduce the total amount of Scope 3 emissions. In

100%

Concept Tire1

Over
90%

recognition of this stance, we achieved a place on the “Alist” of CDP Climate Change and the Supplier Engagement in“From Laboratory
to Circuit”

Tire for BWSC2

63%

80%

2023.
70%

Initiatives toward Realization of a
Circular Economy

90%“From Circuit
to Street”

TURANZA EV for the
North America
passenger car market

50%

60%

2030

50%

Aiming for

In order to realize a circular economy, we are promoting
material development such as expanding and diversifying
renewable resources using guayule, improving resource2026

We promote the establishment of a circular businessmodel through initiatives across the value chain, from the

Over

39%

37%

39%

Over

40%

30%

productivity by expanding the retread business, andexploring technologies for tire recycling.

2023

40%

2020

2021

2022

2023

2024

2025

2026

2030

(FY)

※1 通常のタイヤ試作プロセスで生産でき、実車走行試験が可能なレベルの性能を有しているタイヤ※2 Bridgestone World Solar Challenge

1 Tire that has achieved production via the standard tire prototyping process, andthat has a level of performance suitable for drive testing
2 Bridgestone World Solar Challenge“produce and sell” and “use” to their “renewal”.
In retreading, we plan to increase the TB retread ratio to

Initiatives to Promote Nature Positive World

approximately 50% by 2026, which is linked to the
expansion of solutions that allows customers to use tires

Becoming Nature positive requires a comprehensive

safer, longer, better, and more efficiently.

approach and transformation that encompasses not only
nature conservation, but also diverse perspectives andProgress Toward the Shift to
Sustainable Materials

issues such as efficient use of resources, sustainableproduction, and climate change countermeasures. We haveincorporated such approach into our Sustainability BusinessToward the realization of a circular economy, Bridgestone

Model and are evolving it into a more circular andhas set mid to long-term targets to achieve a 40% recycled

regenerative approach. In 24MBP, we focus on activities forand renewable material ratio by 2030, and to achieve 100%the sustainable use of natural rubber and water resources

sustainable material use by 2050.

that are directly linked to our business.

In 2023, we achieved 39.6% of recycled and renewale

With regard to water resources, which are essential formaterial use, exceeding our target of 37%, leading to athe continuation of our business. To ensure fair andreduction of 558,000 tons equivalent of new input raw

sustainable use of water resources, we have developed andmaterials.

implemented water stewardship plans (WSP) that are
tailored to local conditions for each of our production sites
located in water stress areas. In 2023, the formulation of
WSP was completed at all 17 targeted sites, and as a resultof the activities, water withdrawal at the targeted sites
decreased by 8.1% from the previous year.
* See

76

Minimizing footprint on the website for details

Enhancing Initiatives for Sustainable Use of
Natural Rubber

rubber with our unique approach rooted in GenbutsuGenba.
* SeeSustainable Procurement on the website for details.
https://www.bridgestone.com/responsibilities/social/procurement/

Natural rubber, one of the key materials for tires, is produced
from Para rubber trees. Para rubber tree production isconcentrated in the tropical rainforests of Southeast Asia andis supported by a complex supply chain that includes as many

Sustainable Value Creation Linked to Businessshaping Scenario

as 6 million smallholder farmers. We believe that building asustainable supply chain for natural rubber is important fromIn the 24MBP, we promote the integration of sustainability

a social and environmental perspective, as well as for the

into the Business Shaping Scenario and build a foundation

sustainability of our business. We are working withfor sustainable value creation, which also enable us tosmallholder farmers to improve productivity and achieve

create new values.

zero deforestation. Our goal is to partner with a cumulative

Our efforts toward carbon neutrality, circular economy,

total of 12,000 smallholders by 2026, each utilizing

and nature positive are linked to value creation in the core,technology developed at our own farms and know-how

growth, and exploratory businesses in the business shaping

effective in disease control. In addition to our efforts as a

scenario. We support sustainable initiatives andcompany, such as tree planting in devastated lands, we arestrengthening our sustainable structure and foundation byalso strengthening collaboration with GPSNR, a global

reinforcing business quality through new & true glocal

platform, WWF, a specialized organization, andportfolio management.

procurement partners to roll out activities that take into

For example, in our core business of premium tires, we

account not only environmental aspects but also social

will improve the various performance required of tires. This

aspects such as human rights. We will continue to take a

includes wear resistance, long life, and lower rollingcomprehensive approach to the sustainable use of naturalresistance, while also improving resource productivity andEarned the ISCC PLUS Certification for our own Natural Rubber Farm (Liberia)
Firestone Liberia’s natural rubber growing and processing facility is
the 16th facility in Bridgestone to receive ISCC PLUS certification*. Thisis the first natural rubber farm in the world to receive ISCC PLUS
certification, and was recognized for its efforts to reduce
environmental impact, use resources efficiently, and mitigate climatechange. The social aspect of the farm is also recognized for good
agricultural practices, such as ensuring adequate working conditions,compliance with local regulations, and promoting effective
management practices to promote continued growth andimprovement. The farm has been a model case in activities that
support local communities, such as supporting the rollout oftechnology developed on the farm to local smallholder farmers, andproviding and supporting medical care and education. The farm has
been in operation for more than 90 years and is a valuable asset for
Bridgestone’s sustainable natural rubber business.

* International Sustainability & Carbon Certification (ISCC): A certification system operated by the
ISCC organization for products manufactured using materials derived from biomass and otherEngaging with local communities as part of the on-site audit

recyclable materials or derived from recycled materials. Certification is based on assessments
against criteria for traceability through the supply chain.

Bridgestone 3.0 Journey 2024 Integrated Report77Building a Foundation for Sustainable Value Creationenergy intensity through “ultimate customization” byin Scope 3 through efficient real x digital driving and vehicle

expanding ENLITEN, our base technology for productoperation support.

design, creating value through BCMA, and shifting to green

Through these efforts, we aim to link business and& smart. In this way, we promote tire manufacturing thatsustainability, creating synergistic effects as two wheels,

improves customer value while reducing business costs andand promote the sustainable value creation, whileenvironmental impact, thereby contributing to thereinforcing our sustainability in structure and foundation.

achievement of our sustainability targets. In the solutions
business, we will increase the ratio of recycled andrenewable materials by expanding the TB retread tires
business, and also expand our contribution to CO2 reduction

Continue to provide social value and customer value
Achieve sustainability targets
Sustainability target in 24MBP: “Produce and sell” “Use” “Renew”

Carbon neutrality:
Further focus on improvement of “quality” including Scope 3 emissions
CO2 emission reduction (Scope 1, 2)
2026

TargetReduce more than

50 %(vs. 2011)

Premium tire business:”Produce and sell”

Core business

Create Good Tires

Circular economy:

2026

TargetSolutions business:“Use”

Growth business

Create Good Business

39% above
Exploratory business: “Renew”

Nature positive:
Reinforce support for smallholders of natural rubber

Focus on “initiatives for sustainable use of natural
rubber & water resources” which are directly related
to our businessInitiatives for reinforcing structure to cope with global management
risk and reducing future risk
% of suppliers setting SBT-equivalent CO2 reduction target (Scope 3)
Risk monitoring related to human rights and continuous improvement

2026

Target92%(CO2 basis)

78

Foundationfor value creation
toward sustainablegrowth stage

Contribution to CO2 reduction (Scope 3)
Contributes to reduce CO2 emissions
by more than 3 times
our own CO2 emissions through light weight,
low rolling resistance, solutions, etc. (2026)

Strengthen the circular business model
Recycled & renewablematerial ratio

Sustainable Value Creation linked withbusiness shaping scenario

Create New Business,
Sowing Good Seeds

Create Good
Business Quality

Lay foundation
for the future
growthNew & trueglocal portfolio
management

Climate and Nature-related Risk Management and Responses to TCFD and TNFD
Bridgestone supports the Task Force on Climate-related

foundation for sustainable value creation by strengthening

Financial Disclosures (TCFD). Furthermore, we began

our efforts toward carbon neutrality, realization of aparticipating in the Taskforce on Nature-related Financial

circular economy, and nature positivity, while linking them

Disclosures (TNFD) Forum in March 2022. As the world

to our business.

becomes increasingly concerned about climate change andthe loss of natural capital, there is a growing movement
towards a decarbonized society, as exemplified by the Paris

Status of Compliance with TCFD and TNFD
Recommended Disclosures

Agreement. Additionally, efforts to achieve a naturepositive world, as outlined in the Kunming-Montreal Global
Biodiversity Framework, are gaining momentum. In thiscontext, we are working to comprehensively assess andmanage its dependency and impact on the climate andnatural capital, as well as the risks and opportunities

As a TNFD Early Adopter, Bridgestone began disclosing
information in line with TNFD recommendations in October
2023. The following is the status of our response on
recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD) and the Taskforce on Nature-associated with climate change and the loss of natural

related Financial Disclosures (TNFD) version v1.0. The

capital, reflecting these in business strategy.
Based on our awareness of these risks and opportunities,
we will enhance sustainable corporate value and build afollowing information is also included in the 105th Annual
Securities Report [Approach and Initiatives on Sustainability].

Governance
Recommended disclosures

Status of Bridgestone’s Response

TCFD

TNFD

Board of Directors’ oversight ofdependencies, impacts, risks andopportunities• 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 in harmony with nature.

Management’s role in assessing
and managing dependencies,
impacts, risks and opportunities• The Global EXCO, the highest level of corporate management, approves and manages the progress of mid-longterm strategies, targets and action plans, including achieving carbon neutrality, contributing to a circular economy
and progress toward being in harmony with nature.

Human rights policies andengagement activities, andoversight by the Board of
Directors and management, withrespect to Indigenous peoples,
local communities, affected andother stakeholders(TNFD recommended disclosure)• The Global Human Rights Policy and the Global
Sustainable Procurement Policy articulate
Bridgestone’s strong commitment to respect andsupport internationally recognized human rights
principles such as the UN Guiding Principles for
Business and Human Rights. The Global Sustainable
Procurement Policy contains minimum requirements
for suppliers to acquire or use land only by legalmeans in accordance with UN Declaration on the
Rights of Indigenous Peoples, and to follow Free,
Prior, and Informed Consent (FPIC) principles when
acquiring land and assessing any forest development
or creating forest management plans. We promote theimplementation of these policies within Bridgestone,
with suppliers, and across the supply chain.
• Bridgestone collaborates with the World Wildlife Fund(WWF) to study and develop a due diligence process
for ensuring the Company’s supply chain is incompliance with the Global Sustainable Procurement
Policy. On-site ESG audits are conducted for suppliers,
including natural rubber smallholders, using aself-assessment questionnaire developed inconjunction with WWF, and risks are evaluated. This
questionnaire includes inquires on the FPIC.
• Bridgestone establishes a grievance mechanism forthe natural rubber supply chain and publicly discloses
the standard operating procedure and status of eachgrievance. We use the grievance mechanism, among
others, to monitor any potential/actual issues related
to indigenous peoples and local communities’ rights inour supply chain.
• The Global EXCO approves and manages action plans andprogress for sustainability, including respect for humanrights, which are reviewed by the Board of Directors.

Bridgestone 3.0 Journey 2024 Integrated Report79Building a Foundation for Sustainable Value Creation

Strategy
Recommended disclosures

Status of Bridgestone’s Response

TCFD

TNFD

Bridgestone comprehensively assesses and manages its dependency and impact on the climate and natural capital,
as well as the risks and opportunities associated with climate change and the loss of natural capital. Dependencies,
impacts, risks and opportunities have been identified as follows.

Dependencies on climate and natural capital (Note)• 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.

Dependencies, impacts, risks andopportunities over the short-,
medium-, and long-term• Dependency on nature’s provision of water in the tire production stage.

Impacts on climate and natural capital (Note)• 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 of interrupting
business activities.
• Risks related to the procurement of raw materials as a result of changing rainfall patterns leading to poor
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 topoor harvesting of natural rubber derived from Para rubber trees, which are found predominantly in tropicalregions.

Risks and opportunities related to the transition to a decarbonized society and a society in harmony
with nature
Impact on business model,
value chain, strategy, andfinancial planning• Risk of adverse effects on operating results and financial position, such as limitations on business activities andincreased 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 climate change and loss of natural capital are
introduced (for example, carbon taxes, CO2 emission reduction obligations and emissions trading systems, andsystems and regulations related to low-fuel consumption performance of tires, recycling used tires, water
withdrawal and sustainable natural rubber, etc.).
• Opportunities associated with changes in competitive factors due to changes in mobility needs (for example,
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 the recycling ofused tires.
(Note) 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 (UNEPWCMC) and industrial groups using ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure).

Resilience of the organization’s
strategy, taking into considerationdifferent scenarios• Bridgestone 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 regularbasis.

Locations applicable to direct
operations, upstream anddownstream• Expand CO2 absorption and fixation throughafforestation of degraded land

• Locations with high integrity
ecosystems and/or areas of decline
in integrity• Areas where biodiversity is of highimportance• Water stress areas• Areas where the organization is
likely to have significant potential
dependencies and/or impacts(TNFD recommended disclosure)80• Bridgestone regularly evaluates production sites
located in water stress areas with a risk of declining
water resources in terms of quantity and quality. As ofthe end of 2023, seven sites in India, Indonesia, China
and other countries were located in river basins
assessed as having “extremely high water risk.” A
water stewardship plan has been formulated and isbeing implemented at all these sites based on thewater situation is each location.

Management of Risks and Opportunities
Status of Bridgestone’s Response

Recommended disclosures

TCFD

TNFD

Process for identifying, assessing,and prioritizing dependencies,
impacts, risks and opportunities
in direct operations and upstream
and downstream value chain• Bridgestone 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. We identify risks andopportunities associated with climate and natural capital by considering dependency and impact throughout thevalue 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).

Management process• We are currently assessing ways to improve its management of business strategy risks and opportunities directly
related to the execution of the Mid-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-today operations are overseen by the Chief Risk Officer (CRO), who is responsible for overall risk management andformulating risk response plans.

Integration into and informing
the organization’s overallrisk management• Identifying potential risks faced by each region and Bridgestone as a whole on an annual basis; clarifying
ownership for those risks not only for us as a whole, but also for each business, SBU and division; andimplementing risk management in an autonomous and continuous manner.

Metrics and Targets
Status of Bridgestone’s Response

Recommended disclosures
Metrics used in the assessmentand management of risks andopportunities

Metrics used in the assessmentand management ofdependencies and impacts

TCFD

TNFD

• Establishing targets and regularly monitoring CO2
emissions (CO2 emissions reduction in Scopes 1, 2, and3, and the reduction contribution of CO2 emissions
throughout the lifecycle and value chain of our
products and services) as one of the metrics forassessing and managing climate-related risks andopportunities.

• Bridgestone sets water withdrawal in water stressareas, environmental footprint (amount of hazardous/
non-hazardous waste and landfill, VOC emissions,
SOx/NOx emissions), and size of habitat management
area as metrics in the assessment and managementof nature-related risks, opportunities and impacts andregularly monitors status.

•W e evaluates the cost of CO2 emissions (US$100/tCO2)
and the effect of reductions based on internal carbon
pricing in order to assess the risks and opportunities
associated with an investment.
• Setting long term environmental vision (2050 and beyond) and mid- term target (2030) to achieve carbon
neutrality, contribute to a circular economy and achieve being in harmony with nature; evaluating and disclosing
performance every year.

Targets and performance inmetrics used in the managementof dependencies, impacts, risks
and opportunities• Setting targets toward 2030 to reduce our absolute CO2 emissions (Scope 1 and 2) by 50% compared with 2011
levels, contribute to global CO2 emissions reductions across the lifecycles and value chain (Scope 3) of our products
and services exceeding five times our operation’s CO2 emissions (Scope 1 and 2) compared with 2020 levels,
increase ratio of recycled and renewable material to 40%, and promote water stewardship plans to reduce water
risks at production bases in water-stressed areas.
• The main results for targets toward 2030 are as follows.
Priority items to be addressed
Establishment
and evolution of
the Sustainability
Business Model

Metrics

2022 results

2023 results

2030 targets

Develop readinesstoward carbon
neutrality

Reduce absolute CO2 emissions(Scopes 1 and 2) comparedwith 2011 levels

31%

57%

50%

Expand circular
economy businessactivities

Ratio of recycled andrenewable materials1

38.4%

39.6%

40%

1. Within total material weight for tire products including tire casing for retreading

Bridgestone 3.0 Journey 2024 Integrated Report81