24MBP Business Shaping Scenario: Create Good Business

Sustainable Procurement
Bridgestone is striving to realize a sustainable society and tobuild foundation of sustainable value creation across theTaking into account the changing business environment,

value chain simultaneously. We are focusing on sustainable

Bridgestone has placed an enhanced focus in procurement

procurement of natural rubber, in light of its impact on

activities on the creation of new value, including ESG, insociety and business. Natural rubber is a key raw material inaddition to conventional value centered on QCD (Quality,tire manufacturing and is an essential renewable resource

Cost, Delivery). We believe it is important to reinforce

for producing high-quality tires. Also, it is a renewabledialogue with our suppliers and co-create new value, withresource that provides livelihood opportunities for millions
of people around the world. It is said that more than 6

the “Bridgestone E8 Commitment” as the axis.
For example, regarding natural rubber, one of theraw materials for which there are high social demands

million people are involved in the cultivation of naturalrubber. Therefore, efforts toward sustainability of natural
rubber are recognized as our crucial management issue forbusiness continuity.
Most natural rubber is cultivated by farmers in Southeast
Asia, where rubber trees are planted on small farms andfor sustainability, we are working collaboratively with
our suppliers to improve traceability and are actively
working to solve social issues throughout the supply
chain, including smallholder farmers. We will continue
to deepen our cooperation with our suppliers toenhance sustainability.

large plantations. Demand for natural rubber has beensteadily increasing globally over the years, and we believethat sustainable procurement requires increasing yields andimproving the livelihoods of small farmers while protecting
forests.
In 2022, Bridgestone formed the Capacity Building TaskForce, bringing together relevant functions to strengthen
capacity building initiatives for smallholders. Leveraging thetechniques and knowledge accumulated from ourMasashi Omae
Director
Global Procurement Divisionexperience in managing our own natural rubber farms, in2023, we provided trainings and technical support tosmallholders, reaching 5,640 smallholders, and otherprojects organized in support of increasing production

Capacity Building Projects with WWF

volume as well as income diversification. In order toaccelerate the corporate initiatives, we have set the global
strategy with a medium-term goal, which is to provide

In 2024, Bridgestone, in partnership with WWF Japansupport for 12,000 smallholders aiming to increase yields

Indonesia, launched a project to provide technical training

and the livelihoods of small farmers and protect forests by

towards that contributes to improved yields of natural rubber

2026. The goal is in line with Global Platform for Sustainablesmallholders in Riau and Jambi provinces in Indonesia, with a

Natural Rubber (GPSNR)

view toward medium-term cooperation. We plan to conduct astandards.

Our sustainable procurement initiatives are grounded in our
Global Sustainable Procurement Policyand aligns withseries of technical training sessions in 2024, ranging fromland preparation and nursery to natural rubber latex coagulum

our goal of using 100% sustainable materials1 by 2050 andcollection by cup lump. In the first quarter of 2024, experts

beyond. We established the goal and KPI of 100% of Tier 1

from our natural rubber farm in Indonesia and Technicalsuppliers will have acknowledged the revised Global

Center in headquarters trained 10 smallholders from Kuantan

Sustainable Procurement Policy. (As of March 31, 2024, 87% ofSingingi Rubber Farmers Association (APKARKUSI) in Riau

Tier 1 tire material suppliers had done so.)province and five smallholders from Jambi province on

1. Bridgestone defines sustainable materials as materials “1) that come fromresources with a continual supply, 2) that can be used as part of our businessover the long-term, and 3) that have a low environmental and social impact overthe lifecycle from procurement to disposal.” For details on sustainable materials,
see below

tapping techniques, fertilization and pruning, and disease

Websitetrainees as instructors, and establish an arrangement to2L ong-term environmental vision (2050 and beyond): Towards 100%
sustainable materials
https://www.bridgestone.com/responsibilities/environment/resources/

2. Suppliers that supply materials directly to Bridgestone

control. With the aim of further expanding the impact ofactivities, Bridgestone will standardize yield improvement
techniques tailored to various farm conditions, train these 15
disseminate these techniques to more smallholders. Throughthese efforts, we will contribute to the sustainability ofnatural rubber.

54andexecutive committee member, taking part in the Capacity
Most of our member farmers are conventional and have

Building and Smallholders Working Group, being actively

not had an opportunity to learn the relevant skills toinvolved in the discussion around GPSNR’s Sharedproduce natural rubber, including taking care of young

Responsibility Framework, and also GPSNR’s Assurance

rubber trees, tapping, coagulating and collecting cup

System. Our active contribution will lead to help thelumps, and fighting disease.

industry tackle the vast and complicated issues in ensuring

I really appreciate Bridgestone and WWF for providing
the training for the farmers to learn such skills. It gives
us understanding in Good Agricultural Practices ofnatural rubber production.
With regular, continuous and comprehensive followup training in efforts to maintain the existence anddevelopment of natural rubber, we expect the training
will ultimately increase the income and livelihood ofrubber farmers as well as sustainable natural rubber
production in Kuantan Singingi Regency.

a sustainable natural rubber supply chain.

Preparation for EUDR Compliance
Bridgestone has set up a global structure in order torespond timely and swiftly to the EU Deforestation
Regulation (EUDR) requirements and is also actively
engaging with industry networks, such as GPSNR andEuropean Tyre and Rubber Manufacturers’ Association(ETRMA), to clarify and compile a common industry viewon the content of regulations and support smallholders
who support production.

Enhancing Traceability of Natural Rubber
Supply Chain
Syoffinal
Advisor of APKARKUSI(Kuantan Singingi RubberFarmers Association)

Our commitment to the continuous improvement of our
natural rubber supply chain’s traceability is unwavering.
Since 2019, we have closely collaborated with suppliers tofoster a deep understanding of the significance of supply
chain mapping, particularly down to the smallholder level.
By 2023, we achieved a significant milestone: 34% of our
natural rubber supply chain was traceable to smallholders
based on supplier self-declarations. By integrating digital
tools, we aim to gain a more comprehensive and accurate
understanding of our supply chain.

Training scene of tapping techniques and medicine application

Global Platform for Sustainable Natural Rubber (GPSNR)
https://sustainablenaturalrubber.org/

Global Sustainable Procurement Policy
www.bridgestone.com/responsibilities/social/procurement/pdf/Policy_English.pdf

Global Platform for Sustainable
Natural Rubber
GPSNR, a multi-stakeholder organization serves as an

W WF Japan
https://www.wwf.or.jp/eng/European Tyre and Rubber Manufacturers’ Association (ETRMA)
https://www.etrma.org/

effective platform for collaboration, sharing resources andknowledge, and uniting Bridgestone’s efforts in enhancingsustainability of the natural rubber industry with other tiremakers, automakers, smallholders, processors, andproducers, civil society.
Bridgestone donated 60,000 USD to GPSNR to support
initiatives led by GPSNR for smallholder capacity building
to be conducted in 2023. In addition, Bridgestone plays
multiple roles in GPSNR including being a founding andBridgestone 3.0 Journey 2024 Integrated Report55