TOYO TIRE GROUP
Sustainable Natural Rubber Procurement Policy (Vol. 1.0)

Established: July 2021

Introduction
Procuring natural rubber in a continuous and stable manner is an important businesschallenge for the Toyo Tire Group (hereinafter called the Group) as it uses the natural
resource as a primary material of its products.
Meanwhile, the Group is well aware of environmental and social issues arising in areas that
produce and supply natural rubber to the Group—such as deforestation, ecosystem damage,and infringement on rights of local people including workers.
The sustainable natural rubber procurement policy worked out by the Group is designed for
it to address environmental protection and such social issues as human rights and labour
problems through the entire supply chain process for natural rubber and promote theprocuring of natural rubber in a responsible fashion as a means of supporting the developmentof a sustainable society.
In line with this policy and through the activities of the Global Platform for Sustainable
Natural Rubber (GPSNR), the Group is determined to do its best to build a sustainable supply
chain for natural rubber in collaboration with stakeholders.
It is our sincere hope that our clients would understand this policy and work to procure natural
rubber in a responsible manner.
The Group will work out a report on the implementation of the policy and submit it tostakeholders on a periodical base.

11. Efforts to Ensure Legal Compliance● Comply with international code of conduct, international treaties, and local and nationallaws, and rules on human rights, labour, land use and the environment through all
business activities, and observe the spirit of compliance.
● Observe local and national rules, and internal rules on prevention of corruption.
● Pledge not to get involved directly or indirectly in any forms of corruption, bribery, andembezzlement.

2. Efforts to Attain Healthy and Functioning Ecosystems● Procure natural rubber produced in a way that does not contribute to deforestation ordegrade High Conservation Values (HCVs).
● Identify and manage areas subject to development and conservation based on the HCV
evaluation and the High Carbon Stock Approach (HCSA).
● Natural rubber from areas deforested or where HCVs have been degraded after the cutoff
date of April 1, 2019 is considered to be non-conforming with this policy element.
● We work with natural rubber suppliers to support the long term protection of naturalforests and other ecosystems and their conservation values, and to support restoration
activities of deforested and degraded rubber landscapes.
● Not use open burning/fire in new or ongoing operations for land preparation, land
management and waste management other than justified or documented cases due toreasons listed below.
・Fire break establishment
・Waste management for sanitary reasons in cases where public garbage collection is
not available
・Phytosanitary and other emergencies● Support activities aimed at protecting wildlife, including rare, threatened, endangered
and critically endangered species, from poaching, over-hunting and habitat loss.
● Undertake activities to protect water quantity and quality, preventing watercontamination from agricultural and industrial chemicals, and preventing erosion andsedimentation.
● Undertake activities to protect soil quality, preventing erosion, nutrient degradation,subsidence and contamination.
● Prevent the development of peatland and refrain from procuring natural rubber fromplantations located on peatland.

23. Efforts to Respect All Kinds of Human Rights● Observe international norms on human rights, including the UN Universal Declarationof Human Rights (UDHR), the UN Guiding Principles on Business and Human Rights(UNGP), various treaties of the International Labour Organization (ILO), andinternational accords concerning land tenure rights of the UN Food and Agriculture
Organization (FAO).
● A system enabling anonymous reporting of complaints related to supply chains has been
established and the system will be operated in accordance with the UNGP effectivenesscriteria.
Desk that receives complaints
e-mail address : NRcomplaints@toyotires.co.jp
mailaddress:

ESG Promotion Dept.
Toyo Tire Corporation
2-2-13 Fujinoki, Itami City, Hyogo 664-0847 ,Japan● Recognize the customary, traditional, and communal land tenure rights of indigenous
peoples and local communities (IP/LC), carry out operations in accordance with the UN
Declaration on the Rights of Indigenous Peoples (UNDRIP), and protect rights listed
below.
・Ongoing land tenure and access rights
・Traditional rights of access for hunting and gathering of animals and plants for thepurpose of subsistence and indigenous cultural and religious traditions, customs andceremonies● Ensure that, prior to any activity that might affect rights of （IP/LC）, territories andresources, their free, prior and informed consent (FPIC) is secured. (This includes
when planning, establishing, restoring, or transforming corporate plantations orindustrial sites, as well as associated infrastructure.)● The FPIC process is done in an appropriate manner while following credible andgenerally accepted methodologies, and associated GPSNR guidance. （IP/LC）have theright to give or withhold their consent to any activity that is subject to the FPIC process.
● Where the company's operations impinge on rights of indigenous peoples and local
communities, compensate and accommodate them through appropriate and mutuallyagreed measures while reflecting the negotiated outcomes of the FPIC process.
● Adopt measures to provide remedy through mutually agreed procedures in cases where
the company previously took possession of, caused harm to the lands, territories orresources of indigenous people and local communities, or contribute to either of themor both without securing FPIC.

Implementation is jointly monitored by thecommunity and the GPSNR member and/or by a mutually agreed third party or parties.
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For the FPIC approach, suppliers are required to observe one of the following approaches．
- UN-REDD (2012) Guidelines on Free, Prior and Informed Consent- RSPO (2015) Free, Prior and Informed Consent for RSPO Members- FAO (2015) Free, Prior and Informed Consent Manual● Establish ongoing, effective, culturally appropriate channels of dialogue with (IP/LC)● Uphold applicable labour rights and labour laws in the jurisdictions where the company
is operating, the UNGP, and the intent of the ILO’s eight core conventions.
This includes:- Freedom of association and collective bargaining in in accordance with national andinternational laws and ILO Conventions No.87 and No.98- No forced labour- No child labour- Decent living wages- No discrimination- Legal working hours- Safe and healthy workplaces- No abusive practices- Gender equity
Safeguards apply to all workers, including contract, temporary and migrant workers.

4. Efforts to Support Community Livelihoods● Support decent living conditions of local communities (e.g., drinking water, adequate
housing sanitation).
● Support the right to food and food security of individuals, households and localcommunities.
● Support the economic, social and cultural rights of local people, including through accessto education and employment.

5. Efforts to Increase Production Efficiency● Support training for natural rubber producers, including smallholders, to improve yield andquality.
● Manage operations to minimize the amount of energy usage.
● Manage operations to maximize natural resource efficiency.
● Minimizing and mitigating carbon emissions.

46. Efforts to Effectively Implement Sustainable Natural Rubber procurement.
● Disclose timebound and geographic-specific targets and milestones and set theirassociated indicators for implementation.
● Embed these indicators and milestones into Toyo Tire Group companies through aninternal sustainability working group.
● Maintaining an active, regular stakeholder dialogue to provide relevant information, andto afford opportunities for feedback and suggestions related to fulfillment of thecompany's commitments.
● Participate in and support multi-stakeholder planning to uphold the GPSNR principles
in different districts and jurisdictional areas.

7. Efforts on Supply Chains and Traceability● Conduct supply chain mapping, assess suppliers for social and environmental risks andengage in risk mitigation activities.
● Support traceability of natural rubber till an appropriate jurisdictional level to confirm orcontrol the conformity of procured natural rubber with the GPSNR Policy Components.
● Notify all natural rubber suppliers that material produced in accordance with the GPSNR
Policy Components will be preferred, set a deadline so as to meet the policy requirements
and ensure that supplier codes and contracts reflect the requirements.
● Get involved in supply chains on a periodical base to support their conformity withcompany commitments through effective incentives, support mechanisms andprocurement monitoring systems.
● In the case of non-conformity by suppliers with the GPSNR Policy Components, grasp
the situation promptly and extend cooperation for the compilation of timebound
implementation plans aimed at remedying past or ongoing harms.

8. Management and Disclosure of Progress toward Sustainable Natural Rubber
Procurement● Monitor the progress toward company commitments on a periodical base to ascertain theperformance.
● Collect information from local stakeholders and affected parties regarding nonconformity with commitments through the use of monitoring systems.
● Disclose yearly the management of progress and outcomes toward implementation ofpolicy-related commitments at least annually.

5Terminology
・GPSNR (Global Platform for Sustainable Natural Rubber)(https://sustainablenaturalrubber.org/) (GPSNR website)
GPSNR is a cross-industry platform aimed at promoting global natural rubber production
and use in a way to take environmental and social issues into more consideration.
・High Conservations Value (HCV)HCV represents value of natural habitats, with HCV areas defined as where these values
are considered to be biologically, ecologically, socially and culturally important, and to be
extremely influential nationally, regionally and globally, and/or to be of outstanding
significance.
Definition of HCV
Category

Definition

HCV1

Species Diversity. Concentrations of biological diversity including endemic
species, and rare, threatened or endangered species, that are significant at
global, regional or national levels.
Landscape-level ecosystems and mosaics. Intact forest landscapes and large
landscape-level ecosystems and ecosystem mosaics that are significant atglobal, regional or national levels, and that contain viable populations of thegreat majority of the naturally occurring species in natural patterns ofdistribution and abundance.
Ecosystems and habitats. Rare, threatened, or endangered ecosystems, habitats
or refugia
Critical ecosystem services. Basic ecosystem services in critical situations,
including protection of water catchments and control of erosion of vulnerable
soils and slopes.
Community needs. Sites and resources fundamental for satisfying the basic
necessities of local communities or Indigenous Peoples (for example forlivelihoods, health, nutrition, water), identified through engagement withthese communities or Indigenous Peoples
Cultural values. Sites, resources, habitats and landscapes of global or nationalcultural, archaeological or historical significance, and/or of critical cultural,
ecological, economic or religious/sacred importance for the traditional culturesof local communities or Indigenous Peoples, identified through engagementwith these local communities or Indigenous Peoples.

HCV2

HCV3
HCV4

HCV5

HCV6

*Source: version 5-2 of FSC principles and criteria for forest management certification(FSC-STD-01-001 v5-2)

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・High Carbon Stock (HCS)
Areas that hold large stores of carbon, such as biodiversity-rich forests
・Free Prior and Informed Consent (FPIC)FPIC is a principle that must be respected from the viewpoint of human rights to prevent
deforestation and changes of land use from hurting livelihoods, culture and livelihoodmeans of indigenous peoples who depend on forests for their livelihoods.

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