Sustainability Report

2021

ESG Promotion Dept., Corporate Infrastructure Division
2-2-13, Fujinoki, Itami City, Hyogo 664-0847, Japan
Tel: +81-72-789-9126 Fax:+81-72-773-3270
https://www.toyotires-global.com/csr/
The names of products, services and other items in this brochure are trademarks or
Japanese registered trademarks of Toyo Tire Corporation

Publishing date: February 2022**It is English version published.
Japanese version was published in September 2021.

About TOYO TIRECONTENTS

01
02
03

Editorial Policy

Editorial Policy

Company Outline (As of the end of 2020)

When confirming the content and quality of this report,

Company Name

Toyo Tire Corporationsome of the GRI Standards, established by the Global

Headquarters

2-2-13, Fujinoki, Itami City, Hyogo, 6640847, Japan

Paid-in capital

55,935 million yen

content and topic boundaries by considering such factors

Number of Employees*

12,426as the organization's activities and their impact, as well as

Number of Employees Japan 5,180(791); Americas 2,152(369);
by Geographic Segment Asia/Oceania 3,764(1); Europe 162(7)Reporting Initiative (GRI) and published in 2016 or 2018,

About TOYO TIRE
Message from the President

were used as reference. We have determined the report

substantive expectations and interests of stakeholders.

*Toyo Tire Corporation and the group companies (consolidated subsidiaries)

05
11
14

Sustainability Management
Activity Report〇Reporting Period: From January 2020 to December 2020

Contribution to society through products
and services
Activity Report

Contribution to the Global Environment→ “Toyo Tire Corporation”, all group companies → “TOYO TIRE” or“the group”, the each company of the group → each company name*More recent information is included in some parts of the report.

Corporation ESC Promotion Dept., Corporate Infrastructure Division

Net Sales:

343,764

million yen

and Toyo Chemical Industrial Products Co., Ltd. at the end of June 2020. Also, our company's
consolidated Malaysian subsidiary, Silverstone Berhad terminated production of tires in June

Tire: 89.2％（306,609 million yen）

2021 and will dissolve after necessary procedures have been taken (outside the reporting period
covered by this report). As a result, structures of relevant organizations and their supply chains,
as well as terms of contracts with business partners, will be different in 2021 and beyond.

Net Sales by Geographic Segment (2020)〇Approve the Report by the governance body: Executive Committee〇Contact Point for Questions Regarding the Report: Toyo Tire

10.8%
(37,156 million yen)

<Significant changes to the organization and its supply chain>
The air suspension business for truck and bus tires was separated from Toyo Tire Corporation〇Reporting Cycle: Once a year (Previous Publish: June 2020)

approved the report in August 2021

Other (Automobile parts etc., including Adjustment amount):* Number of people in parentheses is Temporary Employees**Consolidated Subsidiaries: Toyo Tire Corp., 37 subsidiaries,
4 affiliated companies, and 1 other aff¬iliated company〇 Topic Boundaries: 39 Group Companies* (as of the end of June 2021)〇Setting the Organizations Name in This Report: Toyo Tire Corporation

Net Sales by Business Segment (2020)

Business Profile
Our primary business, which accounts for more than 80% of

Other Areas:16.4%

Japan: 29.5%(101,325 million yen)

(56,508 million yen)

net sales, is the production of automotive tires in Japan, the17

U.S., Malaysia, and China. A new plant is scheduled to start

Activity Report

Respect for Human Rights and Diversity

operation in Serbia in 2022. In order to optimize operations in

Net Sales:

the production system in accordance with changes in supply

19

343,764and demand trends, we are enhancing production facilities

Activity Report

Sustainable Supply Chainin the United States, consolidating plants in Malaysia, andmillion yen

shifting to high-value-added product production in Japan.

21
23<Business Strategic Brands>

Activity Report

Harmony with Local Communities

TOYO TIRE, NITTO
In addition, we manufacture automotive parts that makeuse of our proprietary vibration control technology, such as

Activity Report

54.1%(185,930 million yen)automobile anti-vibration rubber, in Japan, the U.S., China,

Creating Safe and Healthy Workplaces

and Thailand.

Activity Report

25

North America:

Reinforcement of Corporate Governanceand Compliance

Percent of Tire Production Volume (New Rubber)by Geographic Segment (2020)
Asia: 19.5%

Disclosure Policy

Japan: 51.2%(108.8 thousand tons)(41.4 thousand tons)

The purpose of this report (in PDF format) is to share recognition of
the direction Toyo Tire is heading to realize sustainability and ourrecent initiatives in this regard with value creation partners, namely,

Total
Production Volume:

customers, business partners, and employees.

212.3

The web version of this report describes our activities in greater
detail. It is a place where we store data on our achievements andthousand tons

an avenue through which we communicate the latest information.
It is constantly kept up to date.
The ESG Index on the web version serves as a collection of links to
all relevant information that is not found on the Sustainability pagesof our corporate website.

North America:

29.3%(62.2 thousand tons)〇WEBSITE

https://www.toyotires-global.com/csr

01

TOYO TIRE Sustainability Report 2021

TOYO TIRE Sustainability Report 2021

02

Message from the President
realize sustainability-oriented management and capitalizing on
opportunities by creating social value through business, until weagreed upon seven priority themes.
Going forward, we will proceed with the formulation
and announcement of policies and mid-/long-term goals/
plans concerning activities for each material issue, with theCompany Philosophy

Sustainability Committee orchestrating their implementation by

We will endeavor to continuously improveeach functional organization and monitoring their progress.

TOYO TIRE Group’s Materiality
Domain 1 Creation of values
Sustainable mobility society

1.Contribute to the realization of a sustainable mobility societyRich, mobile life

Representative Director and President
Toyo Tire Corporation

In February 2021, TOYO TIRE announced the Mid-Term '21 Plan

and cooperation with stakeholders. We also drew up TOYO

to indicate the direction we will be heading. As we shaped this

TIRE's SDGs (Sustainable Development Goals), which include

new medium-term business plan, we reaffirmed the ideal status

14 goals designed to resolve environmental and societal issues

and strengths of the company, took a hard look at our possible

on a global scale to contribute to the achievement of the Unitedchanges and challenges, and asked ourselves how we should

Nations SDGs through business activities.

expectations and enriches society.

3.Create challenges and job satisfaction for various human resources

Climate change

5.Pursue decarbonization in all corporate activities

Our Vision
Our goal is to be a company that:- S tays one step ahead of the future
through constant technologicalinnovation;

Supply chain-D rives entrepreneurial and creative spirit

Quality and safety-S hares in the enjoyment felt by everyone

6.Promote supply chain sustainability
7.Protect the fundamentals of manufacturing (quality and safety)

Decarbonization in the Mobility Industry

through a progressive culture; andinvolved in our activities.

Our Fundamental Values:“The TOYO TIRE”

In 2020, we focused on the establishment of corporate

CO 2 emissions in the transportation sector, which we aregovernance by verifying whether each of our action principles/

involved in, are estimated to account for around 20% of the total

By the "ideal status," we mean the state in which we haveguidelines for business serves the promotion of the SDGs,

world emissions, and the drive to decarbonize the entire supply

attained our corporate philosophy. To do so is TOYO TIRE's

reviewing them, and making official decisions on their revisions

chain is accelerating among auto manufacturers and others. As

benefit society.

raison d'être, and the whole point of formulating a management

as necessary. At the same time, we took every opportunity

one auto manufacturer after another announces their plan toplan is to realize our corporate philosophy.

available to help management and each organization and Group

end the sale of new cars with internal-combustion engines andPridecompany to deepen their understanding of the significance ofgovernments around the world declare their policies to shift tocompany, and to persevere.

our addressing the SDGs.

electric vehicles (EVs) and hybrid cars, change is gathering pace

Initiativetransform to shift to a higher corporate stage. The Mid-Term '21
Plan is the result of this meticulous process.

Rather than aimlessly seeking to make things bigger andall anew, we will make full use of what we have to develop our03

To create excitement and surprise with

Human resources

Domain 3 Risk management

our commitment to promoting sustainability through dialogue

Our Mission

Domain 2 Infrastructure to support value creation

innovationaccountability to society and enhancement of transparency, andeveryone who we work with.

our products that exceed customer

4.C ontinue to promote the next-generation mobile technology

The New Medium-Term Business Planin the Context of our Corporate Philosophy

our products, and create value for2. Support and create a rich, mobile life

Technology

Rights, Labour, Environment, and Anti-Corruption, as well as

Philosophy

unique strengths, as we assimilate changes, restructure what

T h e n i n 20 21, w e d e c l a r e d t h e e n h a n c e m e n t o facross the globe. Accordingly, we will determine the impact

needs to be restructured through a scrap-and-build approach,sustainability-oriented management in the Mid-Term '21 Plan

that decarbonization and other relevant policies might have on

and raise the standards of corporate infrastructure, so that weand, in April, established the Sustainability Committee, a new

our business in each country/region and allocate our resources

can make TOYO TIRE a company that is resilient and flexible inspecial committee under the Executive Committee, and I

appropriately to take whatever action we deem necessary.

the face of external changes.

assumed the Sustainability Committee Chairman.

We have already swung into full gear in this regard by

We began by identif ying and determining materiality

assembling the decarbonization task force. We will make(material issues) that the Toyo Tire Group should prioritize.

continued efforts to increase the staying power that we need to

Advancing Sustainability-Oriented
Management

We had a series of discussions about how we can combine

realize sustainability by not only promoting decarbonization but

materiality with our corporate philosophy and take ownership ofalso reconfiguring the supply chain foundations, reinforcing thethis initiative to truly integrate sustainability into business without

global framework for collaborative and complementary work,

In 2019, TOYO TIRE became a signatory to the United Nations

letting sustainability be reduced to a mere formality. We tookand establishing new work styles. The Toyo Tire Group will do

Global Compact (UNGC). With this, we reaffirmed our support

both defensive and offensive approaches, namely, managing

its best to meet your expectations. Your kind support in thisof the UNGC's Ten Principles in the four areas of Humanrisks by developing corporate infrastructure that we need toregard will be most appreciated.

TOYO TIRE Sustainability Report 2021

Fairness
Be fair and sel-fless in one’s actions toTake pride in one’s self, work andShow initiative in all matters, and takeownership of one’s actions.
Appreciation
Demonstrate sincere compassion andappreciation for people and society.
Solidarity
Continuously advance creativity andinnovation by wor k ing togethe r tomobilize our corporate knowledge andcapabilities.

TOYO TIRE Sustainability Report 2021

04

Sustainability Management
Our Approach to Sustainability

sources for creating further value, we can establish a cycle ofSDGs. As a result, we came up with the TOYO TIRE's SDGs

solve the issues requested by our stakeholders, but wecreating high added value. We also believe that it is imperativein 2019, which include 14 goals that shape our Ideal Status

also create surprise and new discoveries for society and

The Toyo Tire Group believes that applying our solutions

to work with stakeholders in the supply chain and relevantin 2030. We believe that these activities embody “Our Vision”

contribute to enriching society. Through our opportunities forand resources to resolving global environmental and societal

international organizations as appropriate.

established in our corporate philosophy, and that they will lead

engagement with stakeholders, we strive to be accountable

to the achievement of “Our Mission.”by communicating information accurately and clearly. We also

issues will help us to mitigate business risks and expand

check in light of our corporate philosophy if we are providing

business opportunities into the future. We cannot achievesustainability without tapping into the characteristics ofour business and service territories to continue creating

TOYO TIRE’s SDGs

value for our customers and society through our products

We involved the entire organization in a series of discussions on

and services. By reinvesting the profits thus generated into

how we can contribute to the attainment of the United Nations'business partners and customers with the excitement that

Stakeholder Engagement

exceeds their expectations through our products, services
and every other work.

The significance of the Group in society is that we not only

Value Chain & SDGs
Value Chain

Opportunities and risks to assume

RAW MATERIALS/
PURCHASING・R isk of resource depletion due to climatechange and increased demand

standardized by building a sustainable supply chain through cooperation with stakeholders.

・Social participation of diverse people (social
inclusion)

We will contribute to widespread of mobilities that will be enable social

participation by using higher functionality technologies.

・D iversification and sophistication of userneeds (Pursuit of added value)

We will contribute to progress of mobilities by focusing on adding ofvalue of products and technologies.

We will contribute to the mobility industry efforts that will adapt toclimate change and aim to mitigate the influence by climate change by innovations.

We will contribute to sustainable resource recycling throughoptimization of resource utilization and improvement of product durability.

We will contribute to improve resource usage efficiency including waterand energy through promoting to upgrade of equipment and operation on manufacturing sites.

We will contribute to promote the use of renewable energy in theregion to increase renewable energy share of energy used at manufacturing sites.

We will contribute to create a society where everyone is able to worksafety and healthy though "smartness" -development and introduction of technologies that

・Climate change physical and transition risks
・R isk of resource depletion due to climatechange and increased demand
MANUFACTURING・M aintaining the workforce and improving
productivit y by utilizing diverse humanresources and technology
・C limate change transition risk (emission
regulation, etc.)
・R isk of resource depletion due to climatechange and increased demand・P revention of increased accidents due toincreased traffic demand

We will contribute to realize the safe and secure mobility society

through implementing safety awareness and supporting for improving maintenance skills.

CORPORATE・Market stabilization and sustainable growthby promoting the mainstreaming of SDGs

We will contribute to minimize social impact of extreme weather

phenomena derived from climate change by building a robust value chain.

・Enhance the Climate Change Governance
System

We will contribute to promote local employment and to develop andstabilize the local economy by strengthening global network.

We will contribute to create a society where diverse peoples are
employees can continue to challenge with peace of mind.

able to get equal opportunities and play an active role by providing work environment that

We will contribute to create a society where SDGs become mainstream

through developing human resources to support sustainable development of the world.

We will contribute to develop the whole world economy steadily by

improving regional education and culture level through deployment of our resources.

TOYO TIRE Sustainability Report 2021

Key Stakeholders
Suppliers
Local Communities

Customers/Consumers
Local Communities
Co-R&D
Environment

Environment
Suppliers
Customers
Employees
Local Communities

reduce the human load, e.g. AI and IoT.

SALE & USE

・S table securing of human resources bycreating a rewarding environment

05

Related UN SDGs

We will contribute to create a society where ethical consumption is・S table procurement and quality through asustainable supply chain
R&D

TOYO TIRE’s SDGs (Ideal Status in 2030)

Customers/Consumers
Local Communities
Suppliers
Employees
Local Communities

TOYO TIRE Sustainability Report 2021

06

Sustainability Management

TOYO TIRE Group’s Materiality■ TOYO TIRE Group’s Materiality

strengthen the diverse pool of human resources who

In April 2021, we established the Sustainability Committee

TOYO TIRE decided the materiality, the issues be prioritized

Domaincreate even greater values in an uncertain society that areunder the Executive Committee in order to strengthen andand focused, at the Sustainability Committee in June 2021

1 Creation of values

promote sustainability management.

and approved it at the executive committee in July of the

Sustainability Promotion System

Sustainable mobility society

can support our company’s business management andchanging drastically.
4. T he values that are provided through our products andservices must support the evolution of mobility that is being

The Sustainability Committee deliberates and makes

same year. Identifying the materiality will clarify the orientation

decisions on matters concerning the Group's sustainability

for effectively deploying internal resources and the issues

1. C ontribute to the realization of a sustainablemobility society

strategies, submits them to the Executive Committee as per in-that must be tackled by each employee, which will heighten

house rules, and reports them to the Board of Directors. And

work motivation and promote unity of awareness. This isRich, mobile life

the Sustainability Committee directs the implementation ofalso important in increasing stakeholder engagement bytechnological evolution that addresses the social demands.

decisions through each functional organization and periodicallypublicly disclosing which social issues and demands TOYO

5. TOYO TIRE group will address this key issue by adjusting

monitors progress. For material issues, a cross-sectional task

TIRE group intends to respond to and the corporate values it

force will be established to discuss and promote specific goals

intends to improve.

and action plans.

Board of Directors
Executive Committee■ Materiality identification process

We identified materiality using the following process.

1

Sustainability Committee

Consider sustainability in relation tobusiness opportunities(In principle, once a quarter)
Chairman: Representative Director, President&CEO
Members: 7Members(Vice Presidents of related headquarters)
Secretariat: ESG Promotion Dept., Corporate Infrastructure Div.

2

Draw up overall sustainability strategy, Identification of・I dentify topics that TOYO TIRE must address topractice and embody our corporate philosophy withconcrete products and services, and future societal
changes in mind
・Decide priorities in light of the value that such initiatives
create for societymateriality, Optimization of function sharing, Monitor
progress in key KPIs

Sustainability Task Force

Discuss sustainability and business
risks

Discuss and promote each priority theme for sustainability(decarbonization, etc.)

Identifying our Materiality

Set out the Toyo Tire Group‘s approachto sustainability

3・Confirm risk items for the tire/auto parts industries
identified by international organizations and ESG rating
agencies and those that came to our attention throughbusiness activities
・Determine their priorities in light of possible disruption
they may cause to our embodying our corporate
philosophy and creating value as well as the status of
our efforts to reduce such risks

In the Mid-Term '21 Plan, we expressed our intention toincorporate sustainability initiatives in business management.
We then lost no time setting up a steering committee onWith the Sustainabilit y Commit tee taking over the
discussions in April 2021. Meanwhile, a total of 40 division
general managers and other executive officers, who holdthe key to sustainability promotion, met to discuss the same
topic in May, the outcome of which was used as input to the
Sustainability Committee.

Domainto support
2 Infrastructure
value creation

Human resources

3.C reate challenges and job satisfaction forvarious human resources
Technology

4. Continue to promote the next-generation mobile
technology innovation

Domain3 Risk management

Climate change

5.Pursue decarbonization in all corporate activities
Supply chain

6. Promote supply chain sustainability
Quality and safety

7. P rotect the fundamentals of manufacturing(quality and safety)

to take on technological innovation to materialize theaforementioned values and the continuous promotion of

our vector to the global trend in which all sectors of theworld are beginning to incorporate the same decarbonization
targets and initiatives. We will not only strive to create
an environmentally-friendly mobility society through our
products and services, but also decarbonize the entire
manufacturing process and supply chains and conductvarious initiatives to improve cost competitiveness.
6. We position and prioritize the environmental and social
issues of the supply chain as key issues based on our
understanding that sustainability in our company cannot beensured without the sustainability of suppliers including thatof natural rubber and that truly abundant mobility life canonly happen through healthy supply chains.
7. No matter how valuable a product or service may be, if its
core values including quality and safety are compromised,
then it will no longer be valuable or significant within a society.
One of the key tasks tackled by our company is to ensure
quality and safety as our top priority in all business aspects.

■ Initiatives for Materiality (Future Course of Action)

We will determine specific projects linked to materiality■ Intent of each item of materiality

and set up a special task force to draw up and implement
relevant policies, targets, and action plans (measures). The

1. This is a high priority issue because sustainability for tire andSustainability Committee periodically verifies and deliberates

auto parts manufacturers can only be ensured through theon their contents and progress and, based on its findings,

sustainability of the mobility society. One of our company’s

provides instructions and guidance to optimize the activities.

key challenges is to contribute through our unique products
and services to ensure a sustainable mobility society
characterized by zero environmental load, accidents, andinefficient transportation.
2. Responding to people’s various expectations for theirsustainability to start discussions among the President andVice Presidents to identify materiality.

2. Support and create a rich, mobile life

demanded in this new era. Our company must continue

4

Determine materiality based on thefindings of steps 2 and 3 Abovemobile lives through our unique products and services
while satisfying the sustainability requirements (environmentand safety) of a mobility society creates added value that
supports diversity of a mobility society and is one of the key
challenges of our company.
3.O ur company is looking for human resources with midto long-term perspectives, original and flexible thinking,independence, and spirit of challenge. Our company must

07

TOYO TIRE Sustainability Report 2021

TOYO TIRE Sustainability Report 2021

08

Sustainability Management

New Medium-Term Business Plan,“Mid-Term ’21 Plan” and Sustainability

vehicle production, and the share of registered electric and■ Goals under Mid-Term ’21 Plan

truck share of the market to continue to increase. Therefore,plug-in hybrid electric vehicles to grow as they capture a larger
share of new vehicle sales. We also expect SUV and light

Our company launched a 5-year medium-term business plan

we believe that this tire segment, accounting for 60% of ourstarting in 2021.

current sales mix, has the potential to grow, and electrification

During the period up to 2025, we will steadily advance ouris an urgent issue.

business plan by strengthening our ability to respond quickly

Japan: We predict a slow post-COVID 19 recovery for theand flexibly to changes in the external environment, which is

economy. registered vehicles, new vehicle production, and tire

becoming increasingly uncertain, through collaboration among

demand will all decline slightly, but market share of popular

our global organization.

SUVs and EVs can expect to increase.

■ Our primary markets

tighter environmental regulations.

The United States: We expect that registered vehicles, new■ Growth strategy(R&D)

・A d va nc e d d e si g n: We w ill e nha nc e te c hno l o g y thatsimultaneously achieves multiple performance requirements
at a high level.
・C ustomer-oriented product development: We will realize
unique products by first exploring consumer expectations toaccurately stay a step ahead of the marketplace.
・Next-generation Technology: We will realize unique products

Behavior

EC/cashless purchases, changes in requested
services

Aligning of social & environmental interests witheconomic interests accelerated
・Prioritization of employee/customer satisfaction increased・Accelerated trend to align public interest with economic
interests through customer-producer collaboration

09

TOYO TIRE Sustainability Report 2021

■ Kicking Off the Mid-Term '21 Plan
Sales

With clearly differentiated and attractive priority products asa core, our sales team is expected to increase Toyo Tire's
presence in each market by collaborating with various functions,

Europe: The trend is like to Japan, except that totalenhanced low rolling resistance, improved treadwear andincluding marketing, technology development, product planning,registered vehicles will start to decline after 2025 as a result of

noise abatement, but also spirited performance and noveland pricing to offer added value that only we can provide.

design characteristics.

R&D

The business environment

Mindset30%+; subject to achieving the target ROE

meet the characteristics of electric vehicles, such as(Regions)

R&D centers in Japan, the U.S., and Europe each tap into their・In North America, we will maximize our enterprise value

unique functions to the fullest and, through mutual cooperation,

through marketing activities with a thorough focus on theenhance basic performance and customer-oriented productusers, unique product planning, one leg of the global tripolardevelopment capabilities and accelerate product development.

R&D system among Japan, the U. S. and Europe, producing

In anticipation of the advent of a carbon-neutral society andquality tires using a unique manufacturing system, and a fine-the spread of electric vehicles (EVs), our R&D team will strive

tuned sales operation.

to evolve and advance propriety technologies so that we canIncrease in geopolitical risks

・D ecoupling trend continued, including competition forleadership between U.S. and China
・E conomic disparities widening due to COVID-19 also
aggravate populism

Evolution and accelerated introduction oflaborsaving technology
・Digital investment accelerated to make up for slow growth
in worker headcount・Advanced roles for humans as quality/quantity of data
increased

reliably respond to future needs.

competitive supply source, and the R&D center that take

Production

advantage of the technological base of raw materials willBased on general rules and principles and the shop-floor-firstdevelop distinctive products emphasizing performance. In

principle, our production team will make constant efforts toJapan, we plan to launch high-performance products with an

reduce costs and, while diligently striving to assure quality andeye for growth categories such as for SUVs, and others thatsafety, meet customer demand by building a system that allows

combine a quiet ride, long tread life and unique design.

them to supply priority products to priority markets flexibly. They

(Production and Supply)

are also expected to enhance environmental responsiveness to・T he Serbian Plant, which will become operational in 2022,

contribute to the realization of a carbon-neutral society.

will supply high-performance products using cutting-edge

Business / Corporate / Quality Assurance,materials and state-of-the-art equipment to the UnitedEnvironment & Safety

States and Europe by utilizing geographically-advantageous

These organizations join hands in increasing Toyo Tire's

logistics network.

competitive edge across the entire business process, from・T he Sendai plant in Japan will shift towards producing high-Home bound, budget-minded, avoiding
person-to-person contact

replacement of equipment + growth investment)・S hareholder return: Maintaining dividend payout ratio ofthat combine not only environmental considerations that

・In Europe, the start of our Serbia plant will give us a highly

Significant changes in consumer behavior in the
post-COVID-19 era

Financial Policy・C apex plan: 5-year total: 194.0 billion yen (maintenance/

upstream to downstream, by promoting globally optimalvalue-added tires for the local and North American markets.

procurement, as well as strategic product planning and・We will persist in our efforts to improve productivity bylogistics. While seeking to enhance exper tise in eachvisualizing the manufacturing processes and qualit ycorporate functional platform and the human resource

control data.

foundation and training scheme, they are expected to fulfill■ Key performance indicators

our corporate responsibility to underpin the sustainable
development of our society.

We established financial indicators emphasizing efficiency

Digital Innovation

adopted financial policy balancing growth and return.

T he digital innovation team is expected to build an operation

Financial Indicatorsmodel to increase operational efficiency and productivity on

・Consolidated operating margin: 14% or overa global scale, while engaging in activities geared to achieve

・Ratio of sales from priority products*: 55% or over・Consolidated operating income: 60 billion yen

management indicators and strategies by utilizing the data
accumulated thus far.

・ROE: 12% or over during Mid-Term ’21 Plan
* T ire product categories that embody Toyo Tire’s “strengths”. E.g., new products, coreproducts, and differentiated products. These are essential to achieving operating income (value
and %) targets.

TOYO TIRE Sustainability Report 2021

10

Activity
ReportContribution to society
through products and services

quality system for production, the logistic and supplier quality
demanded by customers (business partners).

 esponding to Climate Change Risks■R
In the mobility industry, we are actively engaged in developing

TOYO TIRE’s SDGs (Ideal Status in 2030)
We will contribute;- to widespread of mobilities that will be enable social participation by using higher functionality technologies.
- to progress of mobilities by focusing on adding of value of products and technologies.

- to the mobility industry efforts that will adapt to climate change and aim to mitigate the influence by climate change by innovations.
- to sustainable resource recycling through optimization of resource utilization and improvement of product durability.

- to realize the safe and secure mobility society through implementing safety awareness and supporting for improving maintenance skills.
Issues to be addressed＊Materiality

 nsuring product quality based on thorough customer⃝Eorientation(*)
 fforts to alleviate and adapt to climate change(*)⃝E evelopment of human resources with technical expertise(*)⃝DTOYO TIRE foresees the following; further diversification of
consumers, increased demand or tightening of regulations for
products and services that concern climate change and globalizationof the areas to which the Group’s products and services are
distributed in the future, etc.
We necessary to respond to these changes in the businessenvironment. So, we regard our priority issues as the development
and supply of products and services that meet the needs of the

Quality Assurance Efforts

Guiding Policies"Striving for the highest level of quality, safety, and societal benefits
in our products and services"—True to this guiding principle as amanufacturer, we clearly state our fundamental philosophy andaction guidelines regarding product safety in the "Toyo Tire Group
Global Product Safety Policy." On the R&D front, we are developing
products and services that have minimal impact on the environment.
To assure product quality and safety, we operate a quality
management system based on ISO 9001 and IATF 16949 (formerly
ISO/TS 16949) to manage risks.

technology to respond to the various climate change risks thatis expected in the future, such as improving technology for fuelefficiency and low emissions, and the development of nextgeneration mobility to replace engine vehicles, etc. In our company, upporting the Participation of Diverse■S
Individuals in Society

we are also engaged in the development of processing technologies

In developed countries, several issues exist such as the rapid

markets throughout the world, we are contributing to the mobility

decline in population, the increase of the aging population, andindustry’s response to climate change risks.

measures to take for vulnerable road users as a result of natural
disasters. Through our products and services, we contributeto the mobility society that supports the participation of diverse
individuals in society. Our tires enjoy a high degree of popularitythat control energy loss, fuel-efficient tires, and automotive partsfor next-generation mobility. And by deploying these products in esponding to Resource Depletion■R
It is essential to the sustainable growth of society to resolve

among our customers and users for their superb durability andthe issue of shortages in natural resources caused by climate

fuel efficiency, guaranteeing safe and comfortable transportation

change and population growth. We are working on reducing thefor ever-diversifying drivers and passengers alike.

use of raw materials in each production process from the design
stage, through research on next-generation material such as new■ Accommodating Increasingly
Sophisticated Customer Needsof material and products with a high-level of wear resistance.

Along with changes in the social environment, the values ofprocess that significantly reduces fuel consumption whilepeople involved in mobility and customer needs for the Toyo

maintaining a high level of wear resistance by using ourTire Group are becoming increasingly sophisticated. We

proprietary technology, Nano Balance Technology, to optimize

not only address issues that our stakeholders expect us toresource characteristics. We started supplying products using

resolve but also create a framework for maintenance work andthis technology in the spring of 2019, thus contributing tosolutions that only tire manufacturers can.

resource-saving by extending product service life.

functional rubber and sustainable raw material, and development
For example, we have established a new development

We have developed a model that automatically collects esponding to the Quality Standards of■R
Each Country

and stores data to monitor changes in the state of tires

Against the background of, for example, climate change and(wear) of tires and other transport vehicles. We are working to

expanding demand for mobility resulting from population

develop this model into a full-fledged business for transport

With an eye toward a future in which the market environment is

While considering it important to achieve greater quality inincrease in emerging countries and economic expansion, more

service providers.

projected to be dramatically different due to the mobility revolution,

the upstream business processes for manufacturing, we aim

and more countries and regions are rapidly introducing new

Beyond solutions to challenges, we are also developing

TOYO TIRE is focusing its efforts on training professionals

to raise the quality not only of products and services thatlaws and systems relating to performance and environmental

products that bring to market something new and delightful.

who can transform difficulties and crises into opportunities

we introduce to the market but also the development andquality for improving fuel ef ficiency of automobiles andA prime example here is the neo-futuristic airless concept tire,for sustainable growth. Human resource training supports

productive process itself.

■ I mproving the Quality of the Development& Productive Process

11

next-generation mobility society, strengthening of technological andmaterial development to achieve this, improvement of quality, andtraining of human resources.

Resolving Global Issues
by Our Products

depending on the driving conditions of individual vehicles while
also sensing road conditions, thus estimating the state of use

Training Human Resources
with Technical Expertise

reducing of CO2 emissions from automobiles. We are working

noair, a maintenance-free tire that offers a "spare-less solution,"technological innovation, and we will engage in education and

For new products that we develop, our Quality Assurance

to strengthen our handling of quality standards throughout

in response to emerging trends in the mobility society. In 2017,training that focuses on basic knowledge education, exchanges

Department checks the design reviews that are performed

the Group by responding to all quality related to increasingly

noair became the first non-pneumatic tire in the industry thatwith parties outside the company, and passing on technology.

at every stage, from product planning stage to production

complex laws and regulations.At the four tire experiment/

can be mounted on passenger cars and driven at high speeds.

Toyo Tire Corporation aims to train human resources withplanning stage. This is to ensure that quality is designed into

evaluation bases in Japan, we test our tires in compliance

Because vehicles with airless tires are not allowed to drive on“problem-solving skills and innovative capabilities” based on

our products and production processes.

with ISO/IEC17025 (general requirements for the competence

public roads due to a lack of applicable laws at this moment,

thinking oriented toward customer needs as well as “logical

We are verifying Robotic Process Automation (RPA), aof testing and calibration laboratories). Since the initial

we are working on their application to "ultracompact cars."

thinking and facilitation capabilities,” which are important

software technology that automatically processes routine tasks,

accreditation in 2013, we have been making constant efforts toabilities. This will be done through company-wide, grade-to see how much it improves our operational efficiency by

improve the accuracy and reliability of our testing.

specific training. At each of our technical headquarters, wepreventing risks that might manifest themselves in the course

Ever y year, our Tire Business and Automotive Parts

will conduct training for young employees so that they acquireof business, such as human errors and fraud. Preparations are

Business each hold a Global Quality Management Committee

technical expertise and promote annual human resourcewell underway for its full-scale introduction. In fiscal 2020, RPA(QMC) meeting, where quality assurance managers andtraining. In 2020, we included an SDGs course in the training

was introduced to four routine tasks, successfully slashing theothers concerned come together from manufacturing bases

curriculum for engineers. Through group work, trainees aretime taken to do the tasks by 929 human-hours, marking afrom around the world. At this meeting, we share and discuss

expected to recognize technological development's role intotal reduction of 1,194.5 human-hours since its inception.

initiatives related to product quality, improvement of theresolving various social issues relevant to our business.

TOYO TIRE Sustainability Report 2021

TOYO TIRE Sustainability Report 2021

12

Contribution to society through products and services
Activity
ReportTOPICS
Announcing Tire Sensing
Technology Concept Using AI
and Digital Technologies

3.6

Contribution to the Global Environment

TOYO TIRE’s SDGs (Ideal Status in 2030)

12.2

We will contribute;- to improve resource usage efficiency including water and energy through promoting to upgrade of equipment and operation on
manufacturing sites.

As the mobility society is undergoing once-in-a-century changes,
we believe that automotive tires must provide the information- to promote the use of renewable energy in the region to increase renewable energy share of energy used at manufacturing sites.

needed to manage vehicle operations and support maintenance.
It is thus only natural that we came up with the idea of using tires
as a device for gathering information, so that we can create new

Issues to be addressed

added value. One of the outcomes of such efforts is tire sensing⃝ Efforts to alleviate and adapt to climate change (*)

technology, which visualizes tire performance while driving.

 fforts to reduce water risk⃝E

Sensors attached to tires detect the road surface conditions and esource recycling efforts⃝R

tire wear to estimate actual tire performance, based on which thecurrent grip of tires is assessed and displayed in real-time. With
this, drivers can see the tire performance required for the roadsurface conditions they are driving on and if their tires are exerting
their tire force*1. Currently, we are gathering tire force data in realtime using sensors mounted onto vehicles while driving on our
Miyazaki Tire Proving Ground and public roads.
We will seek co-creation with external partners to further
evolve mobility with tire sensing technology.

FY2020 Tire Safety AwarenessCampaign

3.6

12.8

As a manufacturer/distributor of tires, on which the safety of the

Guiding Policies
As one of the guidelines to achieve TOYO TIRE's SDGs, wehave established the Global Environment Policy. We will support
international norms and, through precautionary approaches, involve
all players in our value chain in contributing to mitigating otherenvironmental issues that the world faces.

mobility society hinges, the Toyo Tire Group considers it a mission of
As more people choose to drive during the pandemic, it isnothing short of necessary to draw drivers' attention to safety
by reminding them of the importance of periodic checks of tirepressure and precautions to observe when driving on a rainy day.
Therefore, TOYO TIRE and its sales subsidiary in Japan, Toyo Tire
Japan Co., Ltd., joined hands together like last year to engage in atire safety awareness campaign.
In fiscal 2020, the campaign took place at four large shopping
malls across the country with thorough measures in place to prevent
infection with COVID-19. Using a driving simulator featuring ouroriginal software, we provided a total of nearly 500 drivers with arealistic experience of a variety of situations: driving on tires withdifferent tread depths or levels of air pressure to compare breaking

CG simulation of visualized tire force

distance in rainy weather and handling stability, respectively, anddriving a car that is hydroplaning. In a questionnaire survey after theexperience, as many as 96% of the respondents said that they are
now more conscious of the safety of tires.
12.2

Artificial intelligence (AI) technology and machine learning are
making sweeping changes everywhere, and material development
is no exception. As part of our continued efforts to advance Nano
Balance Technology, our proprietary fundamental technology
for developing rubber materials, we have developed novel

Response to Climate Change pportunities and Risks posed■O
by Climate Change
We recognize that risks and opportunities posed by climate
As for our response to climate change, we havee s t a b l i s h e d " D e c a r b o n i z a t i o n Ta s k F o rc e " u n d e r t h e
Sustainability Committee in July 2021, and discuss actionplans, which include orientation, goals, targets, Activity plan

We will continue organizing these educational campaigns inand KPI. The Task Force is considering countermeasures

the hopes that drivers will take a greater interest in tires and startagainst climate change that companies should engage inusing them properly.

Questionnaire and Final Report (Recommendations) of Task
Force on Climate-related Financial Disclosures (TCFD) ** .

and various research institutes, we are in the process ofGoing forward, we will be seeking to develop high-performance
products and reduce development lead-time and costs by creating
an environment where our data is fully utilized and development

term targets.
* An international NGO working in environmental fields (climate change, water security and forest).
** E stablished by the Financial Stability Board (FSB) in 2015 for the purpose of discussing thefinancial industry’s response to climate change issues.

Executive Committee
Sustainability Committee
approvalorganizing climate-related long-term opportunities, risks(physical and transition), and financial impact that will occur incontinuing corporate operations.

proposal/report

Decarbonization Task Force

Role

Setting policies and targets for climate change
response. Specific examination and promotion
regarding implementation

LeaderCorporate Officer & Vice President of Quality
Assurance, Environment & Safety Headquarters

Member

Selected from related departments

SupportESG Promotion Dept. Corporate Administration Dept.
Corporate Strategy Division DX Promotion Division

Based on the predicted impact of climate change publishedsupporting rubber compounding design that use materials
In 2018, we began verifying technologies for rubber

scenarios that are based on scientific evidence, and set long-while referring to the contents of the CDP * Climate Changeby the Intergovernmental Panel on Climate Change (IPCC)

compounding and property prediction using MI technology.

In future, we will prioritize these opportunities and risks
that have been organized, evaluate the business impact usingchange are important business issues.

technologies for predicting properties of rubber materials andinformatics (MI)*2.

For example, we recognize the impact of climate change
as an opportunity, and receives profit from the development

 eduction of Energy Consumption■Rmoves forward using pioneering analytical approaches andand sales of fuel-efficient products. In addition, there are someprediction data.

countermeasures that have launched in response to the risks

We are moving for ward with ef for ts to reduce energyof the strengthen environmental regulations in each country,

consumption through the effective use of energy required

such as changing fuel sources and improving the energy

for business activities both in and outside the organization

efficiency of facilities.

in order to contribute to the alleviation of climate change.

*2 AI-enabled technology that searches for new and alternative materials with greater
efficiency than conventional techniques

13

With the impact of climate change becoming more severe, societal
demands on mobility are also increasing. With its mobility businessat the core of its management, TOYO TIRE recognizes action
on climate change as one of the top priorities that will determine
our future growth. We have a responsibility to the people living
in current and future generations for reducing water-relatedrisks, realizing resource recycling, and reducing greenhousegas emissions. As such, we prioritize these tasks to ensure thesustainability of the Group.

great importance to educate drivers about the proper use of tires.

*1 A ctual tire performance estimated based on a variety of data input from tires,
including air pressure, temperature, road surface detection, load, frictional wear,
and irregularity

Evolution of the Rubber Material
Fundamental Technologies＊Materiality

TOYO TIRE Sustainability Report 2021

TOYO TIRE Sustainability Report 2021

14

Contribution to the Global Environment
Efforts are also being made to develop new products and■ GHG emissions

technologies that contribute to climate change alleviation
and adaption.
At TOYO TIRE ZHANGJIAGANG CO., LTD. (China), they
are renovating their vulcanization process facilities to reduce
power consumption. This subsidiary was able to slash 8% of
its power consumption throughout the vulcanization processby converting its hydraulic equipment to inverters in 2020.
■ Energy Consumption within the Organization

Total consumption(1000GJ)

2018

2019

313.3

296.3

263.8

Japan

226.1

204.7

180.7

US

53.6

57.8

51.8

Asia (Excluding Japan)

33.7

33.8

31.3

Scope 1 emissions

2020
*

*

By Region

Energy indirect (Scope 2) GHG emissions

2018

2019

313.0

294.6

7,473.0

7,346.1

6,777.4

Japan

99.2

70.4

57.1

US

86.7

91.2

86.8

Asia (Excluding Japan)

127.2

133.0

127.7

3,594.3

US1,725.0

1,810.0

1,704.2

Asia (Excluding Japan)

1,534.2

1,544.4

1,478.9

Around Zhucheng (China) has been evaluated the water-related

4,927.8

5,065.8

4,662.4

Renewable Sources

138.3

2.91

0.44

Purchased electricity

2,082.9

1,963.3

1,818.8

-

15.6%

15.7%

324.1

314.2

295.8

(Reference) Percentage of renewableenergy* in purchased electricity
Purchased Steam* Renewable energy sources can include geothermal, wind, solar, hydro, and biomass.

■ Reductions in Energy Requirements of Products(Fuel Efficient Tires)
2018

2019

2020

186.7

169.2

253.7

Amount of reductions in energy
consumption (GJ/㎞ )*Estimated values*Reference: Production ratio of Fuel Efficient Tires
Tires for Passenger Vehicles (PCR)

28.6

20.7

19.5

Tires for Trucks and Buses (TBR)

25.3

21.0

22.4

Scope 1+2 /Sales (t-CO 2 /million yen)

2018

2019

2020

1.59

1.57

1.56

2019

2020

19.0

19.5

19.7

Energy consumption /Sales (GJ/million yen)

the water-related impact as high because of almost the same
reason. In addition, the predictions for 2030 has assessed that, if

2,022.2*

Surface water

1,631.4 1,525.0

1,475.3*

742.1

669.7

546.9*

－

86.9

77.0

＊Third-party verified data
At present, all water intake is from fresh water (water for which the total dissolved
solids are 1,000 mg/L or less)area around Perak (Malaysia).

water from municipal water supplies or other public or private
water utilities and ground water for our business activities.

business issues

Regarding water withdrawal and water discharges, each

We refer to the CDP Water Security Questionnaire to

production facility is responsible establishing its own goals

determine what we should do to ensure water security. We

based on the size of the facility and products they produce.

also use the Aqueduct Water Risk Atlas developed by the

We are also revamping our equipment to reuse water as much

World Resources Institute (WRI) to identify water-related

as possible in each production process.

groundwater running out, or limited access to drinking water

We are working to reduce Greenhouse gas (GHG), whichbases/sites withdraws water from water areas which experts

emissions are said to be the main cause of climate change.

deem to be vulnerable, nationally or internationally designatedin the vicinity.
Additionally, it was confirmed* that none of the Group's

We are promoting fuel conversion and equipment renewal

conservation areas or other sources that are of high value

at manufacturing bases as a countermeasure to scope 1 andin terms of biodiversity, or sources that are deemed to be

2. TOYO TIRE (ZHUCHENG) CO., LTD. successfully reduced

valuable or important for local communities and indigenous

their CO 2 emissions by approximately 655 tons in 2020 bypeople. We are also not discharging wastewater to suchchanging their cooling water circulator's temperature settingswater areas and sources, either.

and recycling exhaust steam for heating.

* Identify using the following information;
Ramsar Sites Information Service, UNESCO-World Heritage Center, Ministry of theEnvironment (Japan), Agency for Cultural Affairs (Japan)■ Water withdrawal(1000kL)

2018
Total water withdrawal from all areas

2019

2020

3,808.3 3,737.3* 3,399.9*

By Source
Surface water
Groundwater
Third-party water

Total water withdrawal from Areas withwater stress

0.00

0.00

19.5*

2,823.5 2,726.8

2,511.6*

984.4 1,010.5

868.7*＊TOYO TIRE Corp. (Headquarters, Sendai Plant, Kuwana Plant (tire/ Automotive
Parts), Hyogo Manufacturing Complex, Tire Technical Center, Automotive Parts
Technical Center, Corporate Technology Center, Tire Proving Ground), Fukushima
Rubber Co., Ltd., Toyo Soflan Co., Ltd., Ayabe Toyo Rubber Co., Ltd., Orient
Machinery Co., Ltd. (Headquarters, Sendai branch),TOYO AUTOMOTIVE PARTS( USA) , INC.、 TOYO TIRE NORTH AMERICA MANUFACTURING INC.,TOYOAUTOMOTIVE PARTS (GUANGZHOU) CO., LTD., TOYO TIRE ZHANGJIAGANG
CO., LTD., TOYO TIRE (ZHUCHENG) CO., LTD., SILVERSTONE BERHAD, TOYO
TYRE MALAYSIA SDN BHD, TOYO RUBBER CHEMICAL PRODUCTS (THAILAND)
LIMITED● Period Subject to Report: from 1 January 2020 to 31 December

2020.

● C riteria of Verification: ISO14064-3: 2006 and the SGS

verification protocol.

● Verification Organization (a third-party): SGS Japan Inc.

TOYO TIRE considers our mission to contribute to the shift
from a society that consumes resources to one that recycles
as the social responsibility of a manufacturer that conducts
business globally.
We strive to secure a stable and sustainable supplyof raw materials, such as natural rubber, indispensable forbusiness growth in terms of both quality and volume. We arealso moving forward with efforts to develop new materials

－

87.2

77.2

Surface water

－

0.00

0.00

Groundwater

－

86.1

76.1

Third-party water

－

1.10

1.11

By Source＊Third-party verified data

energy consumption, water intake and drainage.

● Boundary: 22 sites * Excluding off-site mobile units

Resource Recycling Efforts

impacts on our business activities around our production

 eduction of Greenhouse Gas (GHG)■R
Emissionsof the 2020 environmental data. (As per the procedures of the● Scope: The scope of verification is Scope 1 and 2 emissions,

Zhucheng (China) and Grad Beograd (Serbia), 1.7 times for theare aware that water risks in business activities are one of thein areas where there is a high risk of: water supply fluctuating

Toyo Tire Group obtained the independent practitioner’s assurance

present demand. In this forecast, the demand will be 1.4 times inPrimarily at its production facilities, our Group mainly withdraw

confirmed that, at this point, none of our bases/sites operates

To ensure the veracity and reliability of data that it discloses, theindependent practitioner)

human right guaranteed by the United Nations (UN). So, wewith the potential impact. In the latest evaluation, it was

Assurance:

demand to water supply are expected to increase more than the

We recognize that access to fresh water is an essentialfrom season to season, water running short due to drought,

To prepare for Scope 3 emissions, our R&D team isinfrastructure. Around Chon Buri (Thailand) has been evaluated educing Water Withdrawal■R
and Water Discharges

and wastewater through effective use of water commensurate
2018

significant, and the development status of wastewater treatment

Efforts to Reduce Water Riskbases/sites and engage in efforts to reduce water withdrawal■ Energy intensity in house

impact as Extremely high because in this area, there is a large

stable economic development continues in the future, the ratio of＊Third-party verified data

■ GHG emissions intensity

Type of Source

2,373.6 2,194.8

Total water discharge to areas with water
stressResult:2020*

By destination

Third-party water

15 regions where the Group has manufacturing bases

2019

demand for water, the yearly fluctuations in the water supply are

By Region

3,991.7

Total water discharge to all areas

Approach:

Evaluation target area:

271.6

2020

4,213.8

2018(Aqueduct, WRI) at the end of June 2021.

*

2019

Japan

■ Water discharge

Identify water-related impacts
for our business activities (manufacturing)
Accessed the water-related impacts by Aqueduct Water Risk Data

2020
*

2018

By Region

Non-Renewable Sources(1000t-CO2e)

and to improve product design and production processes tomake more efficient use of materials. The Toyo Tire Group ismaking constant efforts to increase material usage efficiency
and reduce the amount of final disposal.
For example, Toyo Soflan Co., Ltd., for example, reuses
100% * of defective units and discards (cut pieces fromthe molding process) from its resin product manufacturing
process by feeding them back to the process.
*Excluding products using special materials

working to reduce CO 2 emissions from automobiles bydeveloping fuel-efficient tires, among others.

15

TOYO TIRE Sustainability Report 2021

* T he details of each performance that energy and water usage, significant air emissions (GHG, others), and waste, and the detail of each data (boundary, period, assumptions underlying ofdata) are available at our website

TOYO TIRE Sustainability Report 2021

16

Activity
ReportRespect for Human Rights and Diversity

plan. We also organize a variety of awareness-raising training

New employee hires (Toyo Tire Corp.)

sessions, including e-learning on topics such as diversity*Full-time employee including mid-career hiring& inclusion. We now involves all employees in the activities.

TOYO TIRE’s SDGs (Ideal Status in 2030)

positions within the Group.

- to promote local employment and to develop and stabilize the local economy by strengthening global network.

■ I mprovement of Education
and Training Programs- to create a society where SDGs become mainstream through developing human resources to support sustainable development of theworld.

＊Materiality

 reating an environment that enhances the motivation of⃝Cdiverse human resource (*)

 ulfilling responsibility to respect human rights⃝F

For TOYO TIRE to grow as a global company in the future, we
believe it is important to understand the diversification of our
stakeholders. And we must respond in good faith to diversifying
needs while having the consideration. To create this environment, it
is important to build an organization that can make the most of thepersonalities and values of people from various backgrounds andenable them to demonstrate their capabilities. So, we support andrespect international norms, reduces the risk of business activities
negatively impacting human rights, as well as positions opportunities
to support and promote the benefits of human rights as issues thatshould be addressed with priority.

Guiding Policies
We respect international norms concerning human rights and labor
practices, such as the Universal Declaration of Human Rights,
the ILO Declaration, and the Ten Principles of the United Nations
Global Compact (UNGC). In our Charter of Corporate Behavior, we
set forth the principles for faithfully conducting business activities,
including the responsibility for respecting human rights and realizing
a satisfactory workplace environment. In the Global Human Rights& Labor Policy, we also made clear our commitment to respecting
human rights to the extent that they impact the Group's businessactivities. Likewise, our commitment to addressing human rights
issues in the supply chain in collaboration with business partners isclearly stated in the Toyo Tire Group CSR Procurement Guidelines
and the Sustainable Natural Rubber Procurement Policy. These
policies and guidelines also mandate respect for the rights of local
residents and the cultures and customs of their communities.

Fulfilling the Responsibility
to Respect Human Rights

other relevant bases/sites to prevent a recurrence.

The Toyo Tire Group has established itself in the global area, sobusiness activities or workplaces.

As we have more opportunities than before to communicate

30-50 years old;

12.2%

Over 50 years old:

0.8%

Male 91.6%
Female 8.4%

Gender*Diversity of employees (Toyo Tire Corp.)*Full-time employee
Total

3,725 (+3.6% from the previous year)
Under 30 years old; 21.3％

We consider our people to be our most important resource to

Age groups

support continued business growth and we are aware of the

30-50 years old;

importance of developing these human resources. We have

Male 93.3％ (-0.1 pt from the previous year)
Female 6.7％ (+0.1 pt from the previous year)

Genderexpanded our education and training, the goals of which arefor employees to acquire the skills needed to achieve business
management targets.
For example, Toyo Tire Corporation divides its training
programs into three categories: “Grade-Specific Training”,“Selective Training”, and “Independent Training”. We createdtraining programs to meet the objectives of these three
categories and employees’ grade levels and years of service.
To encourage our employees to work toward their future goals,

People withdisabilities

34

Foreigner

21**

Total number ofmanagers

835

Male-female ratio ofmanagers

Male 95.0％ (-0.2 pt from the previous year)
Female 5.0％ (+0.2 pt from the previous year)

Percentage of
Foreign** managers

0.7％ (+0.1pt from the previous year)* G ender-specific data: Refers to data for each biological sex. We do not have

our Company defined our career development policy.

quantitative data specific to individual social sexes due to the dif ficulty indetermining them. Our goal is to provide a workplace environment where all theemployees are given equal opportunities.
D**  ata on foreign nationals: Refers to data on foreign nationals as defined in the
Nationality Act of JapanThe Toyo Tire Group will remain committed to preventing

TOPICS

Diversity of Human Resources

Our Special Subsidiary Participatesat the Hyogo Disabled Persons Employment Forum 2020

 mployment Situation■E

Showa Estate Co., Ltd., our special subsidiary, is fulfilling the Toyoof persons with disabilities,

Tire Group's mission of promoting the employment of persons

they aim to be a company

In response to the globalization of human rights-related

TOYO TIRE is committed to ensuring fair employment practices

with disabilities. They are making every effort to create a safe andthat is indispensable to local

risks, we are providing all employees of the Group withand treatment of employees across our organization. We are

comfortable workplace environment and expand the range ofcommunities.

e-learning sessions on the code of business conduct as partalso striving to create workplaces where diverse individualsof the training program on businesses' responsibility to respect

can fully demonstrate their capabilities, regardless of nationality

human rights.

or gender. In terms of recruiting, we endeavor to secure

is a job fair designed to stimulate the employment of persons

In 2020, a report was received by the grievance control

necessary human resources through various methods - notwith disabilities.

system run by the Toyo Tire Group about a human rights

only new graduate and mid-career recruiting, but also disabledconcern (harassment). We make it a rule to get to the bottom

persons and the reemployment of retired employees.

with diverse stakeholders internally and externally, it will be
increasingly important for us to show respect for the humanrights of all persons involved in our business in accordancewith the Global Human Rights & Labor Policy.

of such cases to take corrective measures if it is an active

To ensure diversity and equal opportunities at workplaces,

problem and preventive measures if it is a latent problem.

we are developing various personnel systems to empower

When a harassment case is reported, we organize a training

employees while also conducting career interviews with every

session at the base/site in question and, if deemed necessary,

employee and drawing up a human resources development

TOYO TIRE Sustainability Report 2021

60.5％Over 50 years old: 18.2％

and mitigating negative impacts on human rights with regard tothat the majority of its employees are working outside of Japan.

17

Age groups

their career advancement, more women are holding managerial- to create a society where diverse peoples are able to get equal opportunities and play an active role by providing work environmentthat employees can continue to challenge with peace of mind.

131
Under 30 years old; 87.0%

responsibilities, and authorities of female employees to assist

We will contribute;

Issues to be addressed

Total

Thanks partly to their efforts to review job descriptions, job

4.5

8.5

work, in order to ensure that diverse human resources can keep
challenging themselves as they tap into their abilities.
The Hyogo Disabled Persons Employment Forum 2020

On the day of the event, for job-seeking students withdisabilities and companies planning to hire persons with disabilities
through their business, they introduced their business andotherinitiatives to help them to improve their employability.
By including diverse persons in society through the employment

TOYO TIRE Sustainability Report 2021

18

Activity
ReportSustainable supply chain

TOYO TIRE’s SDGs (Ideal Status in 2030)
We will contribute to create a society where ethical consumption is standardized by building a sustainable supply chain throughcooperation with stakeholders.
Issues to be addressed＊Materiality

 upply chain management (Society and Environment) (*)⃝S

It essential to TOYO TIRE’ sustainable growth that we understandthe impact of its activities on the supply chain and engage inresolving social issues faced by the supply chain, as a global
company. In addition, we believe that it is only through a soundsupply chain that we can deliver safer, more secure products andservices to consumers. To this end, we position contributing tosharing the Group’s thoughts on sustainable procurement withbusiness partners and solving global social problems throughout
the supply chain as issues that should be addressed with priority.

■ I nternational collaboration on thesustainable procurement of natural rubber

 esponse to the Conflict Minerals Issues■R

In the future, being able to procure a stable supply of natural

mined in conflict areas. Due diligence of the supply chain isrubber is a particularly important management issue for therequired by law in Europe and the United States, as purchasing

Group, which uses natural rubber as the main raw material for

conflict minerals becomes a source of funds for local armed

manufacturing. Meanwhile, the natural rubber industry faces

groups and promotes corruption such as human rights

social issues, such as deforestation at production sites andviolations, bribery, and money laundering. We conduct thoroughGuiding Policies

infringement of the rights of local residents, and there is ainvestigations by tracing all the way back along the supply

We formulated the Toyo Tire Group’s Basic Purchasing Policies inorder to comply with laws and regulations related to free competition
and fair transactions in every country and region as well as pursuing
appropriate quality and price through fair transactions.
“TOYO TIRE Group CSR Procurement Guidelines” and“Sustainable Natural Rubber Procurement Policy” were alsoestablished. We will promote sustainable purchasing in collaboration
with business partners, the goal of which is to reduce, prevent, andminimize the negative impact that business activities have or could
have on the environment or society and simultaneously raise corporate
value and competitiveness. We will also secure stable supplies.

worldwide movement to achieve sustainable procurement of

chain to smelter to determine whether the materials or products

natural rubber by resolving these issues.

supplied to us contain conflict minerals from the relevant

Since 2016, we have endorsed the aims of thecountries, in cooperation with our customers and suppliers.

“Sustainable Natural Rubber Initiatives (SNR-i) ” proposed by*

the International Rubber Study Group (IRSG), and we havepromoted CSR procurement while gaining the understandingof our business partners.
In addition, a new framework "Sustainable Nature" wasFair and transparent transactions

launched in 2018 under the initiative of the Tire Industry Project

TOYO TIRE includes free competition and fair transactions(TIP) under the umbrella of the World Business Council forin the Toyo Tire Group Code of Conduct, and it adheres to

Sustainable Development (WBCSD). We are also participating

antimonopoly laws and the Subcontract Act, undertaking

in the Global Platform for Rubber (GPSNR) * 2 and are holding

fair purchasing activities, compliance with import and export

discussions to resolve issues. In 2020, the GPSNR decided onrelated–laws and regulations, and provides appropriate labels

the elements for policies that its participants need to develop toand explanations. For example, at Toyo Tire Corporation,

incorporate the GPSNR Sustainable Natural Rubber Principles

we ensure our business activities are based on fair and free

into business activities. Accordingly, we made a full revision ofcompetition by formulating not only purchasing transaction

our natural rubber procurement policy, which had been added

rules that stipulate various mat ters such as fair, non-

Partnership with Business Partners

 SR Procurement Guidelines■C romotion of sustainable procurement■P

In line with the TOYO TIRE Group CSR Procurement Guidelines,

to the CSR Procurement Guidelines in 2019, to draw up anddiscriminatory transactions and a prohibition on personal

we are working to resolve social issues throughout the entireannounce the Sustainable Natural Rubber Procurement Policy.

interest in business partners, but also cartel prevention rules,

Creating a supply chain that supports sustainable procurement

supply chain from production to consumption, requesting ourThis brand new policy is aimed at increasing the effectiveness ofwhich prevent cartels, collusion, and acts that could invite

is indispensable for continuing to ensure a stable supply ofbusiness partners to not only follow the Guidelines but also ask

our initiatives concerning ecological ecosystems, human rights,

these, which are prohibited under antimonopoly laws.

raw materials with the quality and volume to support thetheir own upstream suppliers to follow suit.

and communities.

growth of TOYO TIRE. Sustainable procurement means that

As we expand the scope of global procurement, we have

We aim to build a sustainable natural rubber supply chain

we work toward resolving social issues throughout the entire

published the Guidelines in Japanese, English, and Chinese.

through our value chain in collaboration with international

supply chain, from production to consumption, and aims for

For a new initiative in this regard, in 2020, we distributed

initiatives and stakeholders

sustainability in society.

the CSR Self Checklist (questionnaire survey) to about 350* A platform that aims for production and use of natural rubber around the world to be

Because this is an urgent high priority issue for the Group,

suppliers both in Japan and abroad so that they can report

we have established Task force under the Sustainabilityon the status of their activities. Based on the survey findings,

Committee and discuss action plans, which include orientation,

we will conduct due diligence, that is, analyze the risks in thegoals, and targets.

supply chain and feed the analysis findings back to suppliers to

conducted in a method that considers the natural environment and social issues, going
beyond the norms of the industry.

Executive Committee
Sustainability Committee
approval

proposal/report

Sustainable Supply Chain Task Force
Role

Setting policies and targets for climate change
response. Specific examination and promotion
regarding implementation

LeaderCorporate Officer & Vice President of Quality
Assurance, Environment & Safety Headquarters

it known to relevant parties at briefings on the revised CSR
Procurement Guidelines and other occasions.
In 2020, there were no reports from business partners to
the reporting hotline.

8.4

set about creating a sustainable natural rubber supply chain.
Accordingly, in April 2021, we invited WWF Japan to givean online workshop on forest preservation and sustainable

Comment by Stefano Savi, Director, GPSNR
I am delighted to know that TOYO TIRE has announced its
support for the GPSNR policy framework and institutionalized its
commitment to a fair, equitable, and sustainable natural rubber
value chain. With half of the stakeholders
o f na tur a l r ubb er ha v ing a GP SNR
membership, it is undoubtedly a positive
step for the entire industry if TOYO TIRE
and other member companies adopt thepolicy framework. I look forward to seeing

Member

Selected from related departments

how TOYO TIRE's initiatives in this regard

SupportESG Promotion Dept. Corporate Administration Dept.
Corporate Strategy Division DX Promotion Division

our policy framework.

TOYO TIRE Sustainability Report 2021

Inviting WWF to Conduct a Workshop
on "Sustainable Natural Rubber"what is happening in natural rubber producing areas as we

We also set up a whistleblowing desk to which suppliers
can report any concerns about CSR procurement and make

TOPICS

Toyo Tire Corporation believes it important to understandaddress both actual and potential negative impacts.

19

Conflict minerals refer to tin, tantalum, tungsten, and gold

will inspire other companies to support

natural rubber.
The workshop included technical lectures on biodiversity,
protection of endangered wildlife, land development/use, andother topics, as well as forest preservation in areas where
natural rubber is produced. The attendees not only deepened
their understanding of these topics but also took this opportunity
to see how the Sustainable Natural Rubber Procurement Policy
relates to their operations and ponder the challenges that they
may encounter when drawing up action plans.
Going forward, through communication and collaboration
with such professional organizations/groups andstakeholders, we will forge ahead with initiatives forsustainable procurement.

TOYO TIRE Sustainability Report 2021

20

Activity
ReportHarmony with Local Communities

TOYO TIRE’s SDGs (Ideal Status in 2030)

Support for Educatingand Developing
the Next-Generation Children aising the Bar of Career Training■R

We will contribute;- to promoting local employment and developing and stabilizing the local economy by strengthening the global network.

- to develop the whole world economy steadily by improving regional education and culture level through deployment of our resources.

We believe that the development of human resources who⃝ Engagement with Local Communities⃝ Preserving Biodiversity⃝ Support for Educating and Developing the Next-Generation

ChildrenTo become a company that is needed by society in the future,
TOYO TIRE believes that it is important to aim at being a company
that can share joy with everyone (stakeholders) who is involvedin our business activities. It is our opinion that overcoming
environmental problems, securing human resources, and the stable
growth of local economies are vital to our continued growth in the
future. To achieve this, we place importance on opportunities for
dialogue with stakeholders, and position the resolution of issues in
the local community and social issues through collaboration andcontribution to the enrichment of society as issues that should be
addressed with priority.
Guiding Policies
We will create common values with local communities by contributing
to environmental protection to the extent that our business activities
impact the environment, supporting education and development the
next-generation children, and the growth of local communities by
the Group’s resources and collaboration with stakeholders based on
various forms of communication.
At production facilities that are expected to have a particularly
significant impact on the environment, we will make use of aprecautionary approach to respond to the risk that our impact on
biodiversity in surrounding areas will increase.

the next generation and the sustainable development of the
auto industry through communication that incites interest in
automobiles and tires as we tap into our resources to takechanging social situations in stride.
* A n industry-labor organization in Kansai that supports career education at elementary,junior high, and high schools

will underpin the sustainable prosperity of the auto industry is
crucial to ensure business continuity and societal enrichment

Issues to be addressed

We will remain committed to the training of children ofthrough mobility. It is out of this belief that we began supporting"Jonetsu Kyoshitsu (Class of Passion)," which is sponsored owards the development■Tof the local community

by the Kansai Career Education Support Council*, in 2013, by

We consider the sound upbringing of children, society’s next

using the Toyo Tire Group's resources to organize career talks

generation, as a social issue that must be addressed for theto enhance students' interest in manufacturing and help themcontinued development of local communities, and we provide

to develop a career view from a young age.

donation to support education and development of the next-

In fiscal 2020, we connected our office and schools for thegeneration children. Since 2013, TOYO TYRE MALAYSIA SND

first time to hold online classes. Students were given quizzes

BHD has sponsored a scholarship program for schoolchildren

and group work assignments using cut samples of tires, whileand students who are highly motivated academically but may

lecturers stressed the importance of being passionate about

not have access to a satisfactory learning environment due

their work and setting targets in this regard as they talked

to economic reasons. Since the beginning of the program,

about their jobs. The students picked up the samples to work

they offered a scholarship to 30 undergraduate students aton the quizzes and asked lots of questions.

local universities (19 of them earned a bachelor’s degree)
and financial assistance to 249 school students in the formof the Undergraduate Scholarship Program and the Student
Education Assistance Program, respectively. The total donation
amounted to approximately US $ 289,000.
Through the donations to support human resources
development, TOYO TIRE will continue to help raise the living

Engagement with
Local Communities

no Kaze to undertake “TOYO TIRES Midori-no Tsunagari

We understand that our business activities have a directof the project, we focused on the conservation of the "Green

impact on local economies, environments, and societies. And

Trail" which was completed in 2019, and we worked to develop

we emphasize communication with local communities at all

the "Green Square." 18 employee volunteers were joined byour business sites, which includes various activities, such asadministrative officials and members of the local community

actively providing information and creating opportunities forin planting trees and installing log chairs. Coming up, we will

dialogue. We also strive to properly understand the needs of

speak with educational institutions to discuss how we canstakeholders obtained through communication with them andmake it easy for students of elementary schools nearby to use

reflect that in our business.

the new local infrastructure.
their plant will be seen as an integral part of the host community
as it contributes to the further development of the community.

8.1

sense of joy and pride to the host country of Serbia and the plant

at a new tire plant site in Indjija, the Republic of Serbia. Equipped

operators and looks forward to building a strong relationship ofwith a state-of-the-art production system, this plant will play atrust by achieving mutual understanding with the members of thecritical role in our global supply chain, producing quality and cost-

local community through communication programs and otherwise.

competitive tires designed and developed at our R&D center in

S p e e c h byPresident of
the Republicof Serbia©Presidency of Serbia/
Dimitrije Goll

2022, the plant will reach its capacity of five million tires per year

Breaking the
groundExpectations for the plant are already high among those on site,

understanding of and trust in those activities by maintaining

9.4

On December 15, 2020, we observed a groundbreaking ceremony(based on tires for passenger vehicles) by the summer of 2023.

production facilities in particular. Therefore, we not only buildwith many anticipating the positive impact that the technologicala dialogue with and providing information to stakeholders inprowess, strict conformance with rules, attention to detail, andareas around production facilities but also strive to reduce theother attributes of Japanese companies should have on thephysical and psychological environmental burdens. We also

Serbian culture through business activities and undertakings, not topromote efforts to protect biodiversity in local communities asmention the creation of job opportunities for the local community.

something that not only generates direct benefits for local life

TOYO TIRE will operate the plant in a way that imparts a

but also leads to sustainable growth.

TOYO TIRE Sustainability Report 2021

Celebrating the Groundbreaking Ceremony for the First Tire Plant in Europe

East, Africa, and North America. After going into operation in April

direct impact on the environment of the areas around our21

the community as a whole.

TOPICS

Germany and supplying them to markets in Europe, the Middle

We understand that our business activities have the greatest

For example, the Kuwana Plant works with the NPO Mori-standards in the entire community and aid the development ofabandoned thicket into a healthy forest. In 2020, the 7th year

Through such continued commitment, they are hoping thatEnvironmental Protection Efforts

Students tak ing classremotely

Mie” activities, through which we are transforming a local©Presidency of Serbia/Dimitrije Goll

Forest conservation activities (Kuwana plant)

TOYO TIRE Sustainability Report 2021

22

Activity
ReportCreating Safe and Healthy Workplaces

TOYO TIRE’s SDGs (Ideal Status in 2030)
 e will contribute to create a society where everyone is able to work safety and healthy though "smartness" -development and⃝W

introduction of technologies that reduce the human load, e.g. AI and IoT.

Issues to be addressed⃝ Global-level worker safety and health management

TOYO TIRE believes that it is the responsibility of all stakeholders
to prioritize safety in all of their corporate activities. In addition,
promoting the health of employees leads to improved productivity
and improved corporate value, and we recognize this to be
an important business issue for the future business growth.
And preventing industrial accidents and promoting the healthof workers, creating a comfortable work environment, andcontinuing to manage and improving them, does not only reduce
economic damage and loss of life, but also lead to improvementsin performance and corporate value, such as better productivity

and quality. Thus, we have positioned these as issues that should
be addressed with priority.
Guiding Policies
At TOYO TIRE, labor and management work together to operate
an occupational health and safety management system basedon OSHMS Guidelines (Guidelines on Occupational Safety and
Health Management System, Ministry of Health, Labor andWelfare) and promote safety and health throughout the company.
These efforts consist primarily of conducting risk assessments
and implementing necessary measures based on their results
under the leadership of top management.

Creating Disaster Resistant
Workplaces

Promotion of health management

We have enhanced our efforts related to fire prevention

a business perspective and support the idea of strategicallymanagement and strengthened our disaster prevention andconducting health management. We have been reinforcing

mitigation efforts taking into consideration our experience with

our preventative measures particularly for mental healthmajor disasters such as the Great East Japan Earthquake.

issues that are the main cause of long-term absences.

TOYO TIRE considers employee health management from

Activities such as practical firefighting training and blind

In Japan, as one part of building the basic foundation

earthquake training have been introduced at all business sites.

for practicing health management and Work Engagement,

We conduct firefighting training for hazardous materials thatholding mental health care seminars for all employees,

is NFPA600 compliant, which means they meet the standards

from managers and supervisors to general staff. And weset by the National Fire Protection Association (NFPA).

also conduct e-learning for mental health. In addition, we

So far, a total of 239 employees have taken a fire safety

have been conducting stress checks at all offices in Japan.

inspector training course, which began in FY2018, in Japan.

The number of employees who receive the check is over

As one outcome of such an effort, no fires were reported in

90% each year, and we are working to improve the work

FY2020, and the number of small fires was reduced by moreenvironment by analyzing the group results.
Furthermore, as a specific measure to promote mental andthan 33% from the previous fiscal year.
Outside of Japan, too, we are taking actions andphysical health in our employees, we are working to reduce theconducting disaster management drills in accordance withnumber of people on long-term sickness leave by promoting

the level of such risks in each country.

early detection and intervention through individual guidanceand consultation in cooperation with industrial health staff and

FY2020 Disaster prevention drill
implementation record

Employee Assistance Program (EAP) companies.
The Toyo T ire Group has compiled the Infection/

Japan: 22 sites (Total number 4,196 participants)

Contagion Response Manual, which stipulates a necessary

US: 1sites (Total number 366 participants)risk management system, procedures in ordinary times, theOceania/Asia (Excluding Japan): 5 sites (Total number 2,395 participants)

Creating Safe Workplaces

the Industrial Accident Response Manual with the aim ofprotecting employees' safety and the company's credibility by

emergency, with the aim of mitigating damage by infection/

We are working to create safe workplaces from the three

taking prompt and adequate responses when labor-related

contagion, protecting the safety of its employees, andperspectives of “equipment,” “personnel,” and “management

accidents occur to prevent damage from spreading, thus

minimizing the occurrence of such risks.

system development” at all business sites. With regard to

keeping personal and physical losses to a minimum. Stipulated

physical aspects, by conducting a risk assessment on theclearly in this manual are concrete steps to follow when an

hazards, we promote the elimination of hazards based on

industrial accident occurs, a necessary risk management

safety standards for equipment and safety measures such

system against industrial accidents, procedures in ordinary

as an enclosure or interlock. From the aspect of "personnel,"times, the code of conduct for employees, and procedures in

we strive to visualize the "residual risks" that remain after an

the times of emergency.

code of conduct for employees, and procedures in times of

TOPICS
Commended as an Excellent Hazardous
Materials Facility by the Kawanishi City
Fire Prevention and Safety Association

Stepping Up Anti-Heatstroke Measures

13.3

3.9

In recent years, heatstroke while on duty has become an additional

One of our R&D centers, the Corporate Technology Center iscontrols heat and ventilates air at workplaces, and ensures that its

engaged in the maintenance and improvement of the entire

employees hydrate periodically.

action has been taken for equipment. In more concrete terms,

In Japan, persons in charge of safety and disasterwe thoroughly manage such risks by pinpointing high residual

management and the Environment & Health Department

risks, establishing work standards, taking "stop, call, andat all sites meet monthly (currently online). By using thesewait" approaches, and promoting "point and call" and hazard

opportunities to provide information on what they do to prevent

premises to prevent accidents when handling hazardous materials.

Our special subsidiary are seeking to prevent the spread ofprediction (KY in Japanese) activities. Furthermore, eachand mitigate disasters, they share best practices across all

Using the chemical substance management system, they monitor

infections and mitigate heat at the same time by, for example,

business site provides a training program in accordance withsites to prevent similar disasters from occurring at other sites.

the inventory volume of such materials as well as where they are

introducing new uniforms to reduce the burden of outdoor cleanup

the stratified safety training scheme, with an emphasis on "KY"As a result of these efforts, in fiscal 2020, our total

training and experiential safety training. To provide employees

incidence rate of occupational accidents in Japan decreased

with such experiences, we set up Safety KY Training Halls.

by 28% from the previous year.

Here, we use special machines to give a realistic sense of
equipment hazards and draw attention to the importanceof working by the rules. By the end of 2020, we establishedtraining halls at seven locations. At production facilities
where employees with diverse backgrounds work, we makeannouncements in multiple languages and use illustrations andcolor-coded warnings signs.
As for the creation of a management system, we are

FY2020 Safety Performance

The lost-time accident rate (Manufacturing base)*Number of lost-time accidents per million hours worked in total

In Japan: 0.14 (0.00 in FY2019)
Outside Japan: 1.69 (1.82 in FY2019)

risk. To combat this new challenge to industrial health, TOYO TIRE

in real-time to maintain an appropriate management system whiletasks, a job that is vulnerable toencouraging all employees handling hazardous materials to obtain

extreme temperatures. Drying

relevant qualifications. In recognition of these initiatives, whichquickly and giving a coolingare continuously taken throughout the site, in 2020, they weresensation, this brand new uniform

given a commendation by the Kawanishi City Fire Prevention andincreases comfort for workers

Safety Association as an excellent hazardous materials facility.

while on duty.

We will remain committed to creating accident-free workplaceenvironments throughcontinued efforts.

We are planning to distributethe uniform to other sites in a bid
to create an environment thatassures the safety of employees.
Outdoor work in the new uniform

expanding industrial health and safety management systems,
including OSHMS, GSC, and OHSAS 18001. We have compiled

23

TOYO TIRE Sustainability Report 2021

TOYO TIRE Sustainability Report 2021

24

Activity
ReportReinforcement of Corporate Governanceand Compliance

TOYO TIRE’s SDGs (Ideal Status in 2030)
We will contribute to minimize social impact of extreme weather phenomena derived from climate change by building a robust
value chain.
Issues to be addressed⃝ Reinforcing corporate governance⃝ Further spreading awareness of placing greatest priority oncompliance
We are living in a time when the future outlook is increasingly
uncertain, what with climate change, the changing demographic
structure, and infectious diseases that spread globally. In order tosustain international business growth as we strive to survive the“once-in-a-century” change in the auto industry, we at TOYO TIRE
believe it essential to ensure management transparency and pursue
fairness within the organization. To this end, we recognize that wehave a responsibility to various stakeholders, and it is necessary
to maintain an appropriate management system and increaseawareness that compliance is the most important issue, and we havepositioned these as issues that should be addressed with priority.

measures to help all employees deepen their understanding ofof Corporate Behavior” as corporate action principles applied

the philosophy.

uniformly across the Group in order faithfully conduct businessWe have positioned the “Corporate Creed,” the important

activities but also the “Toyo Tire Group Code of Conduct” forfounding spirit that we will maintain into the future, as theeach director and employee to put the charter into practice.

overarching concept; put into words our significance in society

Taking into the consideration differences in laws, regulations,in the form of “Our Mission”; and clearly specified the visionand customs between countries and regions, the various Groupfor the company that we should strive for in that mission ascompanies outside Japan have created independent codes of“Our Vision.” We also lay down “Our Fundamental Values” as aconduct using the code of conduct as action guidelines.

foundation for ideas that all corporate officers and employees
should value equally.

Guiding Policies
We p ro p e r l y i m p l e m e n t t h e p r i n c i p l e s o f t h e c o r p o r a t egovernance code in order to implement effective corporate
governance.
For us to faithfully conduct business activities to realize asustainable society, "constantly benefiting society by being fairin what we do" is the primary criteria for action in our corporate
philosophy, and we have revised the Toyo Tire Group Charterof Corporate Behavior, the corporate action principles applied
uniformly across the Group, to reflect this. We have alsoestablished the Toyo Tire Group Code of Conduct for each andevery director and employee to put the Charter into practice, andmade efforts to spread the Code across the Group.

into 9 languages: Japanese, English, Russian, German, Italian,'21 Plan, which we announced in February 2021, we madeChinese, Thai, Malaysian, and Portuguese, and defines the basic

it clear that the realization of our corporate philosophy is ouractions that every Director and employee of the Group should

raison d'être and that business plans are in place to realize thetake. We are working to spread the code of conduct throughout

corporate philosophy.

the Group and reinforce compliance.

In order for everyone in the Toyo Tire Group to understandour philosophy well, we have set up a corporate philosophy
lecture as one of the in-house training programs. In fiscal 2020,
department heads were given case studies to understandthe importance of spreading visions and strategies linked tocorporate philosophy at workplaces, as well as group work
workplaces. The session proved to be a valuable opportunity
for them to enhance their awareness of the need to spread our
corporate philosophy by sharing the challenges and efforts in orporate Governance System■C
Our corporate governance system comprises the Boardof Directors, which is responsible for decision-making andsupervision, under which the Nomination & Compensation■ Governance structure *As of April 2021
General Meeting of The shareholders (once a year) * Chairman: Representative
Director, President & CEO

Audit & Supervisory Board *Members: 4 Members of Audit & Supervisory Board
Board of Directors (Once a month)and other matters concerning directors. Also comprising thesystem are the Executive Committee, which serves as thedecision-making body for business execution, the special
committees, which act as deliberative and consultative bodies
for their respective areas, and the Audit & Supervisory Board,which audits the performance of the Board of Directors andeach of its members. Our corporate governance structure
allows these organs to fulfill their respective functions andresponsibilities effectively. In April 2021, to enhance andtransparency, which are essential for sound business activities.

doing so with their peers from other departments.

■ Anti-Corruption

 ork of the Board of Directors■W

The Toyo Tire Group strives to ensure fairness and transparency

TOYO TIRE holds a regular board of directors meeting once

Corruption and Anti-Bribery Policy and Anti-Bribery Rules, wein all its business activities. Having established the Global Anti-rules are applied appropriately to our business. In fiscal 2020,
we organized e-learning sessions on the prevention of bribery*Chairman: Representative
Director, President & CEO*Members: 5Directors (of which
3 are outside members)

were held. Outside Directors attend the board of directors

for employees from the corporate and R&D divisions and back-meetings and other important meetings to offer their opinions

office operations at production sites.

Nomination and Compensation Committee

Executive Committees (Twice a month)*Chairman: Representative Director,
President & CEO

on deliberations to fulfill their responsibility to monitor andsupervise management.

With the recognition that, if acts of corruption and/or bribery are discovered, there is a risk of not only a large

Since FY 2017, the Company has been conducting an

financial penalty and detention of the perpetrators concerned,

analysis and evaluation of the effectiveness of the Board of

but also a risk of serious damage being done to our corporate

Directors as a whole by conducting a signed survey of directors

value by business suspension and social punishment, we willand Audit and Supervisory Board members regarding thework to prevent such misconduct as part of our corporate*Chairman: CCO, who are elected by the Board of Directors

operation, composition, activities, etc. of the Board of Directors.

social responsibilities.

Crisis Management Committee (Once a quarter)

The compilation, analysis, and evaluation of the surveys are

Special Committees
Sustainability Committee (Once a quarter)*Chairman: Representative Director, President & CEO

Compliance Committee (Once a quarter)*Chairman: Vice President of Crisis Management (Corporate Headquarters)

Organization & Personnel Committee (Once a quarter)

Safety & Environment Committee was merged into.

*Chairman: Vice President of R&D Headquarters

TOYO TIRE Sustainability Report 2021

establishing such hotlines at each site to ensure fairness and

FY2020, a total of 17 meetings, including extraordinary ones,

Quality Assurance Committee (Once a quarter)

25

Reports can also be made anonymously. Overseas, we areare making constant efforts to ensure that these policies andTechnology Committee (Once a month)

Since its establishment in 2017, we have taken a variety of

external hotlines employees and business partners can use.

supervise the status of business execution by Directors. In

special committee, the Sustainability Committee, which therefer to our corporate philosophy as the basis for their work.

system since 2006. In Japan, we have established internal andevery month to make decisions on important matters and*Chairman: Representative Director, President & CEO

At the Toyo Tire Group, all corporate officers and employees

The Toyo Tire Group has maintained an internal reporting（of which 3 are outside members）

promote our sustainability management, we established a new preading the Philosophy■S■ I nternal Reporting System*Chairman: Representative Director, President & CEO*Members: 5Directors (of which 3 are outside
members)

Committee is placed as an independent advisory organ to
the Board of Directors on personnel affairs, compensation,

Conduct Handbook: Global Version.” This handbook translated

In the new medium-term business plan, the Mid-Term

where they shared the current status of its promulgation at their

Corporate Governance

We have newly created and distributed the “Code of*Chairman: Vice President of Quality Assurance, Environment & Safety
Headquarters

Investment & Credit Committee (Twice a month)*Chairman: Division General Manager of Corporate Administration Div.

Each Division

Group Companies

entrusted to a third party in order to ensure impartiality. Based

Grievance Mechanismon the results of third party evaluations, we will further improve-R eporting Hotline (Creating an Internal Control System)*Targets: Employees, Business Partners

the functions of the Board of Directors.

Promoting Compliance preading Awareness of the Charter of■S
Corporate Behavior and Code of Conduct-C ustomer Relations Department * Targets: Customers, Local
Communities- Inquiry Form (on the Website) * Targets: Customers,
Shareholders and Investors, NGOs-L
 abor-Management Council Meetings * Targets: Employees-C onsultation Desk for Compliance with the Antimonopoly Act*Targets: Employees- IR meetings *Targets: Shareholder, Investor

TOYO TIRE compiled not only the “Toyo Tire Group Charter

TOYO TIRE Sustainability Report 2021

26