Sustainability Report 2022

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: September 2022** It is English version published.
Japanese version was published in August 2022.

CONTENTS
1

About TOYO TIRE

2

Editorial policy

3

Message from the President

5

TOYO TIRE Sustainability
TOYO TIRE Sustainability and value
creation goals

T7	 OYO TIRE Sustainability
TOYO TIRE Materiality

Editorial policy

About TOYO TIRE
Company outline (as of the end of 2021)

 omainⅠ
11 D
Value creation

Business profile

We have used some parts of the GRI Standards (published in 2016 or 2018), established by

Our primary business, which accounts for over 90% of

the Global Reporting Initiative (GRI), as a reference to determine the content and quality ofCompany nameToyo Tire Corporation

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

this report. We have also determined the report content and topic boundaries by considering

Headquarters

2-2-13, Fujinoki, Itami City, Hyogo, 664-0847, Japanthe U.S., Malaysia, and China. In 2022 we began oper-

such factors as the organization’s activities and their impact, as well as substantive expec-

Paid-in capital

55,935 million yen

ation at a new plant in Serbia. We will seek to make thetations and interests of stakeholders.

Serbian plant highly cost competitive while optimizing

Number of employees* 11,524
Number of employees Japan 5,076 (743); Americas 2,036 (409);
by region
Asia/Oceania 2,931 (33); Europe 281 (15)Group structure

environment and society, and that may have a substantial influence on stakeholders’in supply and demand trends and building a supply baseevaluations and decision-making, have been positioned as material issues in this report.

for the U.S. market.

(Numbers in parentheses are temporary employees)* Covers entities included in consolidated financial statements.

Domain Ⅲ
17	
Risk management

In particular, items that represent the Group’s significant impacts on the economy,

global manufacturing operations according to changes

Remarkable initiatives from within the reporting period are featured as “TOPICS.”

Sustainability and ESG themes beyond23	

We also manufacture automotive parts that makeToyo Tire Corp., 39 consolidated subsidiaries, 11 affiliated companies

use of our proprietary vibration control technology, such

Significant changes to the organization and its supply chain:
In June 2021, tire production was ended at our consolidated Malaysian subsidiary,
Silverstone Berhad, and the necessary procedures have been carried out to dissolve thecompany. There have been consequent changes to the structures of relevant organizations
and their supply chains, as well as in contracts with business partners.

as automobile anti-vibration rubber, in Japan, the U.S., omain Ⅱ
14 DFoundation for value creation

the material issues

 arget organization
T
Toyo Tire Corporation and group companies (consolidated subsidiaries)● 
Organization names in this report:
Toyo Tire Corporation itself is referred to as “Toyo Tire Corporation” or “we”
The entire Group is referred to as “Toyo Tire Group,” “the Group” or “we”
Individual companies in the Group are referred to by their company name● Reporting period: from January 2021 to December 2021●

China, and Thailand.

Environmental
Sustainability and ESG themes beyond25	
the material issues

Social* More recent or past information is included in some parts of the report.

Reporting cycle: once a year
● Report approval by governance body: approved by the Executive Committee in July 2022
● 
Contact for questions regarding this report: ESG Promotion Dept., Corporate Infrastructure Division, Toyo
Tire Corporation*T his report serves as a Communication on Progress (CoP) through which we provide information on ourefforts related to the United Nations Global Compact (UNGC) and its principles.
*S ome information in this report may differ from previously published information due to change in thescope of calculations.
●

Net sales by businesssegment (2021)
Tires

Other

(Automobile parts, etc.,
including adjustment amount)90.1 %
354,641
million yen

Net sales by region (2021)

Total
consolidated

393,647
million yen

9.9 %39,006
million yen

Percentage of tire production volume(new rubber) by region (2021)
North
AmericaJapan

26.4 %
104,168
million yen
Other

15.3 %
60,161
million yen

29.3 %
Total
consolidated

393,647
million yen

Total
North
AmericaJapan

58.3 %

52.0 %

229,318
million yen

127.7
thousand tons

245.7
thousand tons

Sustainability and ESG themes beyond28	the material issues

Governance

71.9
thousand
tons
Asia

18.7 %
46.0
thousand tons

Our information disclosure
タイヤ生産量合計：245.7千トン
日本：52.0％（127.7千トン）
北米：29.3％（71.9千トン）
アジア：18.7%（46.0千トン）

The online version provides further details on our activities,
and can be used in conjunction with this PDF version.

This report (PDF version) is published in order to share with our value
creation partners (customers, business partners and employees) our
intended direction and recent major initiatives to achieve sustainability.

所在地別売上高比率
Further details on our activities are available in the online version.
連結売上高合計：393,647 百万円
日本：26.4％（104,168 百万円）
This serves as a repository of information on our activity results, and北米：58.3％（229,318 百万円）
a place to share and update new information.
その他：15.3％（60,161 百万円）

The online version of the ESG Data/Survey Index provides a complete
collection of links to related information on the company website,

Online version of the sustainability report
Action for Sustainability
Japanese website

https://www.toyotires.co.jp/csr/
Global website (English)

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

including pages that are not a part of the sustainability section.

1

TOYO TIRE Sustainability Report

連結売上高合計：393,647 百万円
タイヤ事業：90.1％（354,641 百万円）
自動車部品、その他（調整額含む）
9.9％（39,006 百万円）

TOYO TIRE Sustainability Report2Message from the President
Philosophy (Established in January 2017)

Representative Director,
President & CEO

Company philosophy

Our fundamental values: “The TOYO TIRE”

We will endeavor to continuously improve our products, and create
value for everyone who we work with.

Fairness

Our missionPride

To create excitement and surprise with our products that exceed
customer expectations and enriches society.

Take pride in one’s self, work and company, and to persevere.

Our vision

Show initiative in all matters, and take ownership of one’s actions.

Our goal is to be a company that:

Appreciation- Stays one step ahead of the future through constant technologicalinnovation;

Demonstrate sincere compassion and appreciation for people andsociety.

- Drives entrepreneurial and creative spirit through a progressive
culture; andSolidarity- Shares in the enjoyment felt by everyone involved in our activities.

Sustainability management policy

Materiality and value creation

overall foundation a company should have.

Be fair and self-less in one’s actions to benefit society.

Initiative

Continuously advance creativity and innovation by working together tomobilize our corporate knowledge and capabilities.

To ensure steady implementation, activity progress is

When envisioning a society of sustainable mobility five tocompared against medium- and long-term targets and plans,ten years from now, we would like to see ourselves continuingchanges are regularly shared with and evaluated by the Sustain-

In 2021, Toyo Tire Corporation announced its medium-term

Sustainability is about demonstrating our purpose within society.

to create value that brings joy through our unique products andability Committee, and then feedback is given to each businessbusiness plan, the Medium-Term’21 Plan, where we declared our

We have worked to address, from both risk and opportunity

services. It is no longer an exaggeration to say that electric

function. While progress was generally positive in the evaluation

intention to strengthen sustainability management — incorporating

standpoints, the particularly important issues we can impact,

vehicles (EV) are the key to sustainable mobility. And as thefrom fiscal 2021 to the present, we recognize the necessity ofsustainability into management and aiming to create social value

and reflected them in our materiality.

growth of the EV market picks up speed, it is anticipated that it

keeping close watch over the impact major global changes may

will also diversify.

have in the future.

through our business.
To take determined action toward this goal, in April 2021 weestablished the Sustainability Committee under the Executive

We have identified seven material issues and classified theminto three domains: the value we create in society through ourbusiness, the foundation necessary to create that value, and theWe will utilize our strengths in this growing and diversifying

Committee, with myself as chairperson, to serve as the bodyown unique strategy of providing “the enjoyment of driving” andthat deliberates on company-wide strategies for sustainability.

anticipating user preferences to provide satisfaction.

We also developed a basic policy to use as a set of principles for discussing, thinking about and engaging in sustainability,

TOYO TIRE Group’s Materiality

to first confirm which perspectives we should always bear in

DomainⅠ

mind.

Value
creation

Companies are now being asked what their motivations
are in pursuing sustainability, and what kind of stance they aretaking in order to ensure the sustainability of the society they area part of.
For Toyo Tire Corporation, our Company Philosophy both

Domain Ⅱ

Foundation forvalue creation

signifies our purpose and can be seen as our motivation for

Sustainable mobility society
1. Help create a society of sustainable mobility
Rich, mobile life
2. S
 upport the enjoyment of mobility for all
Human resources
3. Supportdiverse talent with motivating
challenges and job satisfaction
Technology
4. Continue innovating next-generation mobility
technology

sustainability. We believe that underpinning our sustainability
initiatives with our philosophy is a way to pursue our corporate
identity, and at the same time also means integrating
sustainability into business management.
We see it essential to shift from short-term thinking to a
medium- to long-term mindset, as well as to work together

Domain Ⅲ

Risk
management

Climate change
5. P ursue decarbonization in all corporate
activities

Our commitments to human capital development andimportant foundation that supports value creation, and we will

In 2019, we became a signatory to the United Nations Global

further work to strengthen both.

Compact, declaring our support for its 10 principles in the

We will also improve our risk management in order to protect

four areas of human rights, labor, the environment and anti-

the foundation of our business and the unique value that we

corruption. We also announced our commitment to ensuring

create in society.

transparency and accountability to society, to strengthening

Regarding the decarbonization of our corporate activities
specifically, we have set a target to reduce emissions by 46%
compared to 2019 levels by 2030, with the ultimate hope ofthese through stakeholder dialogue, and to working towards
achieving the SDGs through our business activities.
By closely integrating initiatives based on our Sustainability

going carbon neutral by 2050. We will also expand our use ofManagement Policy into corporate management centeredrenewable energy, save energy through equipment updates andaround our medium-term business plan, we will fulfill our

new manufacturing systems development, and innovate on-site

responsibility as a member of global society while improving ourdecarbonization through digital transformation.

corporate value.

Then there are the issues of resource recycling and humanrights within the supply chain, the importance of which will
only increase in the future. We are already addressing both ofpartnerships through society as a whole in order to avoid

Quality and safety

developing sustainable materials, promoting retreading of truck

becoming self-righteous.

7. Ensure the fundamentals of manufacturing:
quality and safety

and bus tires, partnering with primary natural rubber suppliers,

respect internationally-recognized standards, and form wider

Lastlytechnological innovation indeed also form an invaluable andSupply chain
6. P romote supply chain sustainability

with others in the supply chain, ally with relevant organizations,➡ See pp. 7-10 for details on materiality.

EV market, taking on the challenge of sustainability with ourthese matters through approaches such as researching andWe would like to thank you for your kind, continued supportof the Toyo Tire Group.
August 2022

and implementing objective risk assessment systems.

➡ See pp. 5-6 for details on the sustainability management policy.

3

TOYO TIRE Sustainability Report

TOYO TIRE Sustainability Report

4

TOYO TIRE Sustainability

TOYO TIRE Sustainability and Value Creation Goals
With ESG at the core of our corporate activity base, Toyo Tire strives to create not only economic value through our management and operations,but also social and environmental value that will improve our Group’s worth and help achieve sustainability.

Environmental awareness

Awareness of the external macro environment (before 2025)
Significant changes in consumer
behavior in the post-COVID-19 era●Increase in geopolitical risks

●

●

●

Predicted changes in the mobility field (before 2030)

Aligning of social & environmental interests
with economic interests accelerated●

Growth of environmentally compliant/electric vehicles●Evolution and accelerated introduction oflaborsaving technology●Greater use of IT (mobility-related data
linking)●Opportunities & risks●

Increased use of driverless transport andalternative transport services
Further diversification to meet individual
needs and convenience dding innovation and originality intoA
environmentally compliant/electricvehiclesEnsuring environmental compliance,
quality and safety throughout the value
chain

●

Responding to growing demand forsafety●

Upholding human rights throughout the
supply chain●Contributing to the service sector●

Increased
corporate value

TOYO TIRE Group Sustainability Policy
Strongly aware that every action in our business is linked to society and the future, we will seek to fulfill our
purpose by solving social issues through our corporate activities and creating social value.
02
Medium-to long-term view

View all sustainability themes inconnection with our philosophy
and act in line with our corporate
identity

Identify the company’s opportunities and important risks as
medium- to long-term material
issues and address them05

Contribution to a sustainable
society

Value creation cycle

Stakeholder collaboration

Establish a cycle of increasing
product and service value andinvesting profits in sources offurther value creation

Collaborate with our supply chain,align with relevant organizations,and increase corporate value
through dialogue

Strengthen our proprietary technology by
joining up the R&D of Japan, the U.S. andEurope to develop highly preferable and differentiated products that meet environmental
and other next-generation mobility needs

Build a stable supply base for the
North American market and make the
Serbian plant highly cost competitive

Strengthen offerings for strategic models bylaunching differentiated products for North
America, Europe, Japan and Asia according
to local market strategies, and creating tieups between tires and automotive parts

55 % or overto achieving the target
30 %+; subjectROE

Consolidated operating income

60.0 billion yen

ROE during Medium-Term’21 Plan

12 % or over

* Tire product categories that embody Toyo Tire’s “strengths”. E.g., new products, core products, and differentiated products. These are essential to achieving operating income (value and %) targets

TOYO TIRE Sustainability Report

Domain Ⅱ

3 Support diverse talent with motivating challenges and job satisfaction

Foundation for value
creation

Risk management

Economicvalue

2 Support the enjoyment of mobility for all
4 Continue innovating next-generation mobility technology

Profitmaximization
and returns

Solving social
issuesCreating public
value

Sustainablegrowth

5 Pursue decarbonization in all corporate activities
6 Promote supply chain sustainability
7 Ensure the fundamentals of manufacturing: quality and safety
Conserve water and aquatic environments
Contribute to the circular economy● Prevent chemical pollution●

Other ESG issues

14 % or over

% of sales from priority products*

1 Help create a society of sustainable mobility

Maintaining dividend payout ratio of

Shareholder return

Social value

DomainⅠ
Value creation

Domain Ⅲ

Financial indicators

Consolidated OP margin

Business Srategy

Risk Management

Financial policy

194.0 billion yen

Sales

G

Materiality

Goals as a GroupSales

5-year total:

Mfg.

Towards asustainable
society

Activities for sustainability

Production(maintenance/replacement of equipment +growth investment)

Tec.

Medium-Term’21 Plan (FY2021-FY2025)

R&D

Capex plan

Human Resources

S

04

New Medium-Term Business Plan

Environmental
value

E

03

Sustainability

Communication

Financial Base

Philosophy

Corporate activities

01
Identity based on our corporate
philosophy

Help solve social issues throughour corporate activities based on
our belief in social sustainability
as a prerequisite for businessgrowth5

Securing a stable human resource base●Environmental
SocialGovernance●

Maintain physically and mentally healthy and safe working
environments for all employees and relevant contractors● Crisis management and resilient response●●●

Effective governanceFurther establish a positive corporate culture and business practices

TOYO TIRE Sustainability Report

6

TOYO TIRE Sustainability

TOYO TIRE Materiality
In promoting sustainability, we believe it important to identify issues that should be given priority when considering factors such as theMaterial issues

relevant scope of our business domain and internal resource limitations. We have thus established our Group material issues, which were
decided upon by the Sustainability Committee in June 2021 and then approved by the Executive Committee in July.
Along with stretegically investing our internal resources into initiatives related to the material issues, we will also use this opportunity
to foster a corporate culture where each employee addresses sustainability issues by connecting materiality to their own duties, as well as
1strengthen materiality-focused stakeholder engagement, such as public ESG dialogues.

Process of identifying material issues

DomainⅠ

After declaring our intention to build sustainability into corporate management in our Medium-term’21 Plan announced in February, we soon
formed a steering committee for sustainability where the President and vice presidents of each headquarters began discussions on identifying material issues. This was transitioned into the Sustainability Committee in April, and the two committees collectively held discussions
from February a total of four times over four months. In May, a total of 40 division general managers and other executives who are key in theHelp create a society of sustainable mobility

We recognize that the sustainability of tire and auto parts manufacturers can only be ensured througha society of sustainable mobility. We will thus fulfil our duty in using our unique products and services
to help establish a society of sustainable mobility that boasts net-zero environmental impact, zeroaccidents and efficient transportation.

Value creation
Unique value provided tocustomers and society
through our products andservices

promotion of sustainability met to discuss the same themes, and the outcome was taken into account in committee discussions.

2

Support the enjoyment of mobility for all

We see it important to offer creative added value that supports the diversity of a society of sustainablemobility by fulfilling the essential conditions for sustainability (environmental compliance, safety) while
also meeting the varied expectations people have for their own mobility through our unique products
and services.

Process of identifying material issues

1

Determine
the Toyo Tire
approach tosustainability

2

3

Investigate how sustainability
impacts business opportunities
and social value

Investigate sustainability andbusiness risk●●

 xtract key themes to address —Ebased on specific products andservices, target customers andfuture social change — in orderto realize the Toyo Tire corporate
philosophy
 etermine the value created inDsociety through theme initiatives
and evaluate their priority

●

●

4

 onfirm risks in the tire and auto parts
C
industry that have been identified
by international groups, ESG ratingorganizations and other bodies, andrisks we are aware of through our
corporate activities

Determine their potential to hinder

3

Identify
material issues
based on the
results ofsteps 2 and 3

Domain Ⅱ

Foundation for value
creation
The base for value creationachievement of our corporate philosophy and social value creation, and thestatus of existing Group efforts, andevaluate their priority

Domain Ⅲ

Risk management

themes for each material issue and formulated medium- to longterm targets and goals for each theme, as well as processes andResponsible businesspractices that protect themeans of value creation

measures to achieve them.
To set targets and goals, we first considered the vision of what
we would like the Group and society to achieve in the long term

VisionGoals/KPIs

towards these goals.
For the medium (as of 2025) and short term, we worked back-policies and business plans, and progress managed.

7

TOYO TIRE Sustainability Report

Pursue decarbonization in all corporate activities

Our Group will adjust its course to match that of global society, including Japan, business communities
and industries in sharing the same targets towards decarbonization, and work united as a company intackling this key issue. We will not only aim to eliminate the environmental impact of mobility throughour products and services, but also to decarbonize our entire manufacturing process and supply chain,and tie these measures to increased cost competitiveness.

6

Promote supply chain sustainability

Process

Targets/KPIs
7

wards from 2030 to plan the intermediate processes and measuresneeded to achieve these goals, which will be built into annual

Continue innovating next-generation mobility technology

We understand that our own sustainability cannot be ensured without the sustainability of our suppliersof natural rubber and other raw materials, and that the genuine enjoyment of mobility is createdthrough a healthy supply chain. We thus see environmental and social issues in the supply chain as key
challenges that we will prioritize in our efforts.

(by 2030), and made these our “Vision Goals.” We then established“Vision KPIs” as benchmarks to confirm our progress on the way

4

The value we provide through our products and services must support the evolution in mobility being
demanded in this new era. To make this happen, we believe it is vital to engage in ongoing technologicalinnovation and make continuous advancements that meet the demands of society.

5

Process of setting targets and KPIs
Based on our Sustainability Policy, we have set specific activity

Support diverse talent with motivating challenges and job satisfaction

We seek individuals who can equip themselves with the medium- to long-term perspective of a tire andautomotive parts manufacturer, think creatively and flexibly, and show initiative and ambition. We willsecure a foundation for diverse talent who support our company’s business management and createhigh added value in these rapidly changing and uncertain economic and social times.

Shortterm
1–2
years

Mediumterm
Approx.
5 years

Longterm

Approx.
10 years

Ensure the fundamentals of manufacturing: quality and safety

No matter how much value a product or service may create, if it cannot maintain a strong core ofquality and safety, it is no longer able to offer that significance or value to society. Quality and safety are
therefore our top priority in all of our operations, building on lessons we have learned in the past.

TOYO TIRE Sustainability Report8

TOYO TIRE Sustainability

TOYO TIRE Materiality
Medium- to long-term materiality initatives

Sustainability promotion system and cycle
In April 2021, we established the Sustainablity Committee — chaired by the President — under the jurisdiction of the Executive Committee,

Reducing the environmental
impact of mobility

with the goal of strengthening and promoting our sustainability management. This committee deliberates and decides upon matters related

2

Mobility for all

Value creation scenarios

The enjoyment of driving

 nhance fuel efficiency with everyE
new model● Reduce weight● Create more EV-compatible products●

 chieve long product life and superiorA
braking performance on wet surfaces● 
Tire wear diagnostic service

regularly. We have also formed cross-organizational task forces to investigate and promote specific targets and activity plans related tosustainability initiatives.

■ Develop technology for electronic

A society of sustainable mobility●

Directors. These decisions are then executed through each function in cooperation with other special committees, and progress is managed

Unique EV strategy
1

Safe mobility

to Group sustainability strategy and, following internal regulations, presents them to the Executive Committee for report to the Board of― Through the expanding anddiversifying EV market ―SUVs and pick-up trucks■ Develop differentiated products for

SUVs and CUVs according to trends
in the North American market

Board of Directors

Executive Committee
Supporting foundation

3

4

Motivating challenges and job satisfaction fordiverse talent■ Workplaces where diverse talent works together

Technological innovation for next-generation
mobility■ Technologies established specifically for the environ-naturally to grow and flourish■ Talent development that maximizes individuality,
character and capability

Sustainability Committee(Chair: President ＆CEO)

Scope1&2

Scope3■ All functions within the company work together andIncorporate eachproject’s targets and
KPIs into annual policies
and plans

Each function

and supply chain collaboration.

Medium- to long-term CO2 emissions reduction goals

CO2 emissions per tire

Risk management to protect value created46

Aim to help reduce CO2 emissions per tire by

Reduce CO2 emissions by% (vs. FY2019)by 2030. Carbon neutrality by 2050.

20% (vs. FY2019) by 2030.

 nergy savingEUpdate of mfg. systems and equipment● 
Effective and efficient initiatives driven by data● 
Flexible energy procurement including renewable energy● 
Utilize international carbon pricing in environmental investment
decision making

 trengthening supplier engagement for decarbonization
SImprove efficiency of raw material and product logistics● 
Improve technologies and develop processes for low fuelconsumption and weight reduction● 
Increase focus on fuel-efficient tires and EV tires● 
Improve utilization rate of recycled materials● 
Help popularize retread tires

●

●

●

●

face of environmental and social risks in raw material
procurement.

Implement measuresand policies according
to plans■ Promote technological innovation, product enhancementwith energy suppliers to promote decarbonization.

■ Create a robust supply chain that is resilient in the

Set sustainability targets
and KPIs

features

Decarbonization

Supply chain sustainability

Ascertain progress towardsustainability targets and
KPIs

ment and EVs

Sustainability task force(Decarbonization, supply chain, etc.)6

Formulate group sustainability strategy
Identify and periodically review materiali issues■ Uniting eco-conscious technologies with sophisticated■ New and sustainable materials

5

Develop sustainability policies
Monitor the entire scope of sustainability

 reate global centralized management of suppliers and visualization ofC
the supply chain● 
Promote responsible raw material procurement based on environmental
and social risk assessments in the supply chain● Work with suppliers to promote use of sustainable natural rubber inaccordance with GPSNR* principles and our Sustainable Natural Rubber
Procurement Policy●

Activity themes linked to material issues
As our materiality is formed of the key priority issues of the Group, we have set up task forces as sub organizations within the Sustainability
Committee, and are also using existing company-wide structures and meetings to set targets and KPIs for each theme, and plan processes
and measures to achieve them. After approval of these by the Sustainability Committee and Executive Committee, each heardquarters will
incorporate them into their annual policies and business plans and carry them out.
Activity themes outside the scope of material issues
There are themes that, while not included in our materiality, are necessary to address in order to meet the demands and expectations ofinvestors, customers and other stakeholders. We will also address these themes by building them into the annual policies and businessplans of each relevant organization.
The Sustainability Committee will regularly manage the progress of initiatives for these themes, review them according to circumstancesand set new targets to conform to the current business environment and management strategy. We have established a system to promote
activities through use of the PDCA cycle.

* GPSNR: Global Platform for Sustainable Natural Rubber

7

Quality and safety■ Enhance product quality and safety throughout thevalue chain.

9

TOYO TIRE Sustainability ReportEstablish a process assurance system through quality visualization at each step reate an individual product management system secure of traceability toCmarket end● Provide more hands-on safety awareness programs for users●●

TOYO TIRE Sustainability Report10Domain Ⅰ

a t e ri a li

1

ty

M

Value creation
Help create a society of sustainablemobility1

Help create a society of sustainable mobility
2

Support the enjoyment of mobility for all■Channeling our prowess into satisfying strict standards
In the face of rising climate-change risks, the role that tires playin raising the fuel efficiency of vehicles is becoming increasingly
important. By reducing the energy lost from repeated tire
deformation during driving, tires can roll more smoothly and be
driven longer distances for the same amount of fuel. However,while this increases fuel efficiency, any rubber with a small energy loss will generally reduce the tire’s gripping force, especially

Our policy

on wet road surfaces. Therefore, when developing fuel-efficienttires, it is essential to reduce rolling resistance while maintaining

parts manufacturers will only be ensured once a society ofa t e ri a li

2

ty

M

We know that the sustainable future for tire and automotive

Support the enjoyment of mobility for all

Safety: Maintenance-free products, diagnosis of tire
wear
Commercializing airless tires
Ultimate enjoyment of driving and sophisticatedfeatures

Japan has been operating a labeling system since 2010sustainable mobility has been created. That’s why we are usingthat displays a tire’s rolling resistance and wet-grip performance

our unique products and services to help establish a society

based on a self-regulated industry grading system and pro-of sustainable mobility that boasts net-zero environmental

motes tires that attain a certain level or above on the grading

impact, zero accidents and efficient transportation.

system for both rolling resistance and wet-grip performance as

In addition to providing the necessary elements forEnvironmental contribution (CO2 emissions reduction):
Reducing tire rolling resistance, improving EV compatibility, saving resourcesa high wet-grip performance.

“fuel-efficient tires.”promoting sustainability, we believe that using our unique

Strict regulations in the EU have required all tires for

products and services to satisfy the various features thatpassenger cars sold in the bloc to display rolling resistancepeople expect from superior mobility life will create added

performance, wet-grip performance and noise performancevalue designed to support a diverse mobile society, so that issince 2012. From November 2017, tires that perform below awhat we intend to do.

certain level on this scale can no longer be shipped to the EU.
The Toyo Tire Group is continuously strengthening our

Activity promotion system (as of April 2022)

technological capabilities by enhancing cooperation between
our Japan and European R&D facilities on the development

Spearheaded by our R&D Headquarters, we are coordinatingof high-performance products that receive high ratings in the

R&D, product planning, sales planning and digital transfor-

extremely demanding European market. We intend to help build

mation (DX) functions and promoting sustainability-related

an environmental response for automobiles in all markets byactivities based on various themes that correlate with the aims

developing these technologies globally.

of our medium-term business plan.
The Technical Committee oversees the overall implementation of those activities and reports progress to the

We must transform our business so that providing
value to customers and society through our uniqueproducts and services leads to the sustainable
development of the Group. The material issuesof this domain indicate what kind of value is ofpriority for us to deliver and is directly linked toour corporate purpose.

placed inside the tires in real time via an app.
* A worn tire that is reused by replacing the rubber in the part of the tire that comes into
contact with the road surface.

TOPICS
A tire-sensing technology concept driven by
AI and digital technology
We believe tire functions that provide information
with regard to vehicle management and maintenancesupport will become increasingly important for
creating a society of sustainable mobility. That’s why
we are looking to promote the idea of viewing andutilizing tires, the only parts that come into contact
with the road surface, as information acquisition devices for creating new added value. One technology
we have developed is tire sensing, which visualizes
tire performance during driving. By detecting roadsurface and tire wear conditions using the sensors in
the tire and estimating performance, we can captureand display the data on the current grip force
when driving. This enables us to visualize the tire
performance required for the road surface conditions
under which the tire is currently being driven, andcheck whether the tire is demonstrating its inherent
tire force* when driving. Right now, we are installingthese systems on actual cars and driving on actualroads at our tire test course, and collecting real-time
data.
Going forward, we intend to promote co-creation
with external partners that will enable us to use tiresensing technology to help evolve mobility evenfurther.
* Tire force is a term assigned by Toyo Tire that refers to actual tire performanceas estimated from information input from the tire, such as air pressure, temperature, road surface distinction, load, wear and any detected anomalies.
We have developed an app that displays tire force in real time in a way that isvisible to the driver.

Sustainability Committee.
Executive
Committee

We also offer added safety for customers by remotely
monitoring the air pressure levels obtained from sensors

Sustainability Committee
Technical Committee
R&D Headquarters
Business Headquarters● Product Planning Division
Production Headquarters● Production Management Department
Sales Headquarters● Sales Planning Department
Digital Transformation Headquarters

20 size

9 sizeRolling
resistance
Wet grip
performance
Universal symbol for fuel efficient tires

Value creation

Environmental contribution
Foundation for value
creation

Risk management

WEB

11

For more information on our activities, please visit the address below.

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

TOYO TIRE Sustainability Report

SafetyWe place great importance on reducing rolling resistance,■Tire wear forecasting system to boost customer safety
The R&D Headquarters and Digital Transformation Head-which is a direct factor in reducing CO2 emissions, and we aim

quarters work together on demonstration experiments withto improve grading when introducing product model changes.

customers. We also developed an app that is now being trialed

Furthermore, we set targets when developing each individual

by customers, with a view towards practical application.

product to help reduce CO2 emissions per tire by 20% by 2030

Tire wear forecasting enables us to inform customers

compared to 2019 levels. While keeping this reduction in rollingwhen it is appropriate to rotate their tires and to help extend

resistance at the forefront of our minds, we are also working

the life of a tire and manage tire usage conditions so that weon reducing tire weight and developing the type of processes

can tell customers whether a tire is suitable for retreading.*

required to successfully achieve that.
TOYO TIRE Sustainability Report12Domain Ⅱ

Value creation

Our “noair” airless tire concept is designed to facilitate
maintenance-free, no-spare solutions that satisfy the needs ofthe next-generation mobility society in which people opt for
self-service gas stations, home charging of electric vehicles
the first tire in the industry to achieve a level of performancethat enabled it to be driven on a light vehicle, achieving highdurability and a level of maneuverability that is close to that ofpneumatic tires.
There are currently no laws and regulations regarding
airless tires, but we are installing them on golf carts andconducting test drive events as part of our efforts to facilitate
their practical use. We will continue to promote airless tires
with a view to installing them on futuristic mobility vehicles
and potentially recycling them.

PROXES CL1 SUV wins Good Design Award
2021

3

Support diverse talent with motivating challenges
and job satisfaction

Our PROXES CL1 SUV fuel-efficient tire for SUVs
received a Good Design Award 2021 from the Japan
Institute of Design Promotion.

a t e ri a li

3ty(EVs) and more prevalent car sharing. In 2017, noair became

Foundation for value
creation

TOPICS

M

Commercializing airless tires

The PROXES CL1 SUV tire uses our proprietary

Support diverse talent with motivating
challenges and job satisfaction

Our policy

We seek individuals who can equip themselves with themedium- to long- term perspective of a tire and automotive

T-MODE tire design platform technology to support

parts manufacturer, think creatively and flexibly, and show

the level of comfort driving expected of an SUV,

initiative and ambition. In these rapidly changing and uncertain

adopting a pattern design that segments functions

Demonstrating ability and fostering motivation(developing talent)
Securing diverse human resources (promoting diversity)
Creating healthy working environments (reforming
working styles)

by arranging grooves, sipes and blocks in the tread
section in an asymmetrical pattern. The tire was
evaluated for its sleek design befitting the stylish
image of an SUV and its strong performance both interms of low tire noise and wear resistance. We willcontinue to collect a wide range of market information and advance desired tire performance, while
also striving to develop high value-added products.

a t e ri a li

4

ty

M

Domain Ⅰ

Continue innovating next-generation
mobility technology

economic and social times, one of our priority issues is securing
a foundation for diverse talent who support our company’sbusiness management and create high added value.
Activity promotion system (as of April 2022)

Corporate Headquarters is responsible for promoting initiatives in this area. They consult the Organization & Personnel
Committee when necessary, and report progress to the
Sustainability Committee.

Developing products, materials and technology for asociety of next-generation mobility
Creating recycling technologies for products and raw
materials
Innovating low-impact alternatives to substances ofconcern (eliminating microplastics, etc.)
Supporting safe driving (improving safety awarenessthrough data)
Enforcing intellectual property strategy

Executive
Committee

Sustainability Committee
Organization & Personnel Committee
Corporate Headquarters● Corporate Infrastructure Division
Human Resources and General Affairs Department of each site or Group company

Demonstrating ability and fostering motivation(developing talent)
Asymmetric block pitch
arrangement

Dynamic taper
golf cart using “noair” tires

Ultimate enjoyment of driving andsophisticated features
We are working on technological development and productIntroduces a taper (chamfer) on theedges where the grooves of the continuous rib are cut in a circumferential
direction. This restricts deformation
2. 商品特長
when the tire is in contact with theroad, controls local wear and tear, andimproves wearability and maneuveringstability.
Inner side

Our purpose is to provide value that brings joy tocustomers and society through our products andservices, and this value must contribute to creatinga society of sustainable mobility. The material issuesof this domain indicate the foundation essential tocreating that value.

The variable pitch tread
block design on the
inner and outer sides
reduces the noise level
and improves quiet
performance.
Outer side

commercialization that pursue ultimate enjoyment of driving
and sophisticated design while also satisfying the essential
high-dimensional tire performance requirements for nextgeneration mobility, including environmental considerations

Value creation(fuel efficiency).
The spread of EVs is expected to both accelerate andFoundation for value
creationfurther diversify as we move towards a society of sustainablemobility. In anticipation of this broader and more diverse EV
market, we are leveraging our corporate strengths to enhancethe development of unique technologies and differentiatedproducts so that we can provide greater enjoyment of driving
and anticipate user preferences to provide satisfaction.

Inner side lateral sipe
Placing sipes (fineincision) on the inner side
block reduces the noiselevel and improves quiet
performance.
* Illustration

3D multi-sipe
Restricts deformationof the blocks when
they come into contact
with the road andensures better wear resistance performance.

0

Risk management

opment and provide counseling with supervisors.
Each Group company is dedicated to developing talentComparison: PROXES CF2 SUV

WEB

13

TOYO TIRE Sustainability Report■Education and training
We sees employees as the most important key resource
to support continued business growth, and recognizes theimportance of developing talent. As an example of one of ourrecent initiatives, we updated our training system to further
boost the effects our new personnel system launched in 2021
has on talent development. We established training to matchthe objectives of this new system, including level-specifictraining, selective training, diversity training, evaluator training,
instructor training and supervisor training at plants. In addition,
we launched a self-development platform where employees
can take courses online at their convenience to acquire
desired skills or required knowledge. So that employees canfeel motivated in working toward their future goals, we havealso defined a company career development policy, creating
career path plans for each department and following themthroughout the entire company when carrying out personnel
changes. We also periodically review employee career devel-

For more information on our activities, please visit the address below.

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

based on the educational policies that address their own
business challenges.
TOYO TIRE Sustainability Report14

Domain Ⅱ

Foundation for value creation■Developing talent with technical expertise
With an eye toward a future predicted to have dramaticallydifferent market conditions through a mobility revolution,
we are focusing on the development of professionals who
can transform difficulties and crises into opportunities forsustainable growth. To develop the talent that supports ourGroup’s essential technological innovations, our educationand training emphasizes basic knowledge, external company
relations and the passing down of technology.
■Employee opinion survey
To take a snapshot of our organizational culture, starting in
2021 we have begun running employee opinion surveys.
The results are shared with employees, and used to identify
challenges for which workplace action plans are establishedat each headquarters based on a company-wide improvement
policy. We are tracking implementation and will continue toregularly apply the PDCA cycle in order to steadily strengthen
our organizational culture.

Securing diverse human resources (promoting
diversity)■Employment situation
The Toyo Tire Group is committed to ensuring fair employment
practices and treatment of employees, and to creating workplaces
where a diverse team members can flourish regardless ofnationality, gender or other characteristics.
In our human resources recruitment, we strive to secure a

4

New hires at Toyo Tire Corporation (full-time employees including mid-career hires)
Total

88

By ageBy gender*1

78%

30-50

22%

In the development of wear prediction technology for trucks

Over 50

0%and buses, we have continued from last year in conducting

Male

93%

Female7%3,691 (-0.9% y/y)

By ageBy gender*1

Under 30

19.5%

30-50

57.4%

Over 50

23.1%

Male

93.3% (±0 pts y/y)Female6.7% (±0 pts y/y)People with disabilities

82

Non-Japanese*2
Total management
personnel
Management bygender*1
Non-Japanese*2
management

Our policy

to improve the accuracy of our AI models at predicting tire
lifespan. We have also made a remote tire management app

support the evolution of mobility required for a new age. To

available to customers, and are now considering its practicalachieve this, we are continuously innovating new technologies

application.

that help foster a society that is environmentally sustainable
and supports safe driving.

public roads, and constructed a model to estimate “tire force*”
Activity promotion system (as of April 2022)

implementation, we have developed an app that can visualize
real-time tire force and display it to the driver.

19

this area. The Technology Committee oversees all initiatives* See TOPICS on p. 12 for more information on tire force.

851

and reports on progress to the Sustainability Committee.

Male 94.4% (-0.6 pts y/y)Female 5.6% (+0.6 pts y/y)Executive
Committee

Technology Committee

1.1% (+0.4 pts y/y)

R&D Headquarters● Central Research Center● Production Engineering Division● Technology Development Division
Business Headquarters● Product Planning Division*1 Data by gender: Refers to data on sex assigned at birth. It is difficult to obtain quantitative
data on gender identity and we do not have it, but aim to create workplaces where all
employees can take an equal active part.
*2 Data on non-Japanese employees: Refers to data on foreign nationals as defined in the
Nationality Act of Japan.

Creating healthy working environments(reforming working styles)

Sustainability Committeewith family responsibilities, we offer a system of leave of up

As part of our social responsibility as a global manufacturer,

switched to a policy of fair, unbiased evaluation and recruitment

to one year for employees with immediate or second-degree

we see it as our duty to contribute to the transition from a

for all talent.

family members requiring care, and employees with children

linear to circular economy. The Toyo Tire Group are therefore

under the age of two, allowing them to concentrate on theirworking to increase the use of sustainable materials (defined

responsibilities at home. We have also introduced a system

as recycled and naturally-derived raw materials).

descriptions, responsibilities and authority with the careeradvancement of female employees in mind, and the number ofcustomers and are finally used that they first transform intosocial value. So that customers can use our technologies andgeneration mobility.

non-Japanese candidates when hiring new graduates, andalso key. The company has been proactive in reviewing job

these new technologies and products are delivered to our■Increasing usage of recycled and naturally-derived raw

life balance. For example, in efforts to support employees

awareness of managers, supervisors and male employees ismentally sustainable and supports safe driving. It is only when

apply for and manage such rights for our sustainability-related

TOYO TIRE no longer sets recruitment targets for women andintellectual property. We also believe that these continual
efforts will help us secure a presence in a society of next-materials

where annual paid leave that has expired after two years can

As an example, by 2025 we plan to sequentially introduce

be reinstated and used for reasons such as injury or illness,

into the market materials that have high wearability, and recy-

childcare or nursing care, volunteering, or hospital visits orcled raw materials such as recycled rubber from used tires or

hospitalization for pregnancy or infertility treatments.

recycled carbon black. We are also using open innovation toactively promote technological development that minimizes

In accordance with our anti-harassment regulations,a reporting hotline and advisor have been madeavailable for each business site in order to understandand resolve any incidents of harassment as early as
possible. Training is also provided for advisors toensure that they can appropriately handle the mattersreported and discussed.

and products that help work towards a society that is environ-

Creating recycling technologies for
products and raw materials

are making changes to working styles that improve work-

Improving systems to respond to harassment

We are continuously developing technological innovations

through intellectual property rights, and we systematically

To create environments where diverse talent can flourish, we

TOPICS

Enforcing intellectual property strategy

products with peace of mind, they must be securely protected

retirees, and employing people with disabilities. Since 2018,recognition of the fact that the active participation and improved

under actual driving conditions. With a view towards eventual

R&D Headquarters is responsible for promoting initiatives inboth new graduates and mid-career candidates, rehiring

has since been organized as an initiative for all employees inIn the development of tire sensing, we have obtained
measurements from model vehicles on a test course and■Promoting work-life balance

ment and empowerment of female employees in particular, it

and collecting data from demonstration tests, and are working

The value we provide through our products and services must

diverse range of talent across the world, including by recruiting■Diversity and equal opportunities
To promote the empowerment of all employees, we haveestablished different types of personnel systems and a talentdevelopment plan, and offer career counseling for each
employee. We also offer training to improve awareness on avariety of topics, such as e-learning on diversity and inclusion.
One notable project promoting diversity is the humanresources empowerment committee run by Toyo Tire Japan Co.,
Ltd. since 2016. Established to promote the career advance-

Supporting safe driving (improving safety
awareness through data)

Under 30

Employee diversity at Toyo Tire Corporation (full-time employees)
Total

Continue innovating next-generation
mobility technology

use of petroleum-derived raw materials, which have a major
impact on climate change, and increases use of low-impact
biopolymers and other naturally-derived raw materials.

TOPICS
The 11th company-wide technology
development presentation awards
At TOYO TIRE, we develop technologies for practicalapplication that meet the needs of our customers andbusiness partners, and that incorporate feedback
from our production and sales divisions. Each year
we hold the Company-wide Technology Development
Presentation to report to top management andannounce our latest technological developments andthe results of those initiatives.
In 2021, the presentation was held online andassessed entries based on the five perspectives oforiginality, rationality, future potential, development
speed, and presentation. This initiative will be
continued in the future as we further our technologicaldevelopments to continue responding to the needs ofsociety.

women in management positions has increased as a result.
15

TOYO TIRE Sustainability Report

TOYO TIRE Sustainability Report

16

Domain Ⅲ

a t e ri a li

5

ty

M

Risk management

5

Pursue decarbonization in all
corporate activities

development and sales of fuel-efficient products. To address
the risks presented by stronger environmental regulations ineach country, we are also taking steps such as changing fuelsources and improving the energy efficiency of facilities.
Moving forward, we will rank the opportunities and risks

Pursue decarbonization in all
corporate activities

Our policy

we have identified, evaluate their business impact using
science-based scenarios, and set long-term targets.

As the impact of climate change intensifies, increasing social
demands are being made towards mobility. We see thea t e ri a li

6

ty

M

Responding to climate change
Reducing greenhouse gas emissions
Increasing use of clean energy

Promote supply chain sustainability

mobility business as the heart of our Group, and recognize*1 An international NGO focusing on climate change and other environmental fields that uses
questionnaires to collect, evaluate and disclose information on company CO2 emissions
and climate change initiatives.
*2 Established by the Financial Stability Board (FSB) in 2015 to deliberate on the financial
industry’s response to climate change issues.

that responding to climate change is the most key issue
decisive to our growth. Our responsibility to both current andMedium- to long-term CO2 emission reduction targets

future generations is to reduce our greenhouse gas (GHG)
emissions to help achieve the long-term targets set by the

Scope1&2

Reduce CO2 emissions by 46% by 2030 (vs.
FY2019). Be carbon neutral by 2050

Scope3

Aim to help reduce CO2 emissions per tire by
20% by 2030 (vs. FY2019)

Paris Agreement, as well as expand our use of clean energy,

Activity promotion system (as of April 2022)

M

7

ty

a t e ri a li

Ensure the fundamentals of manufacturing:
quality and safety

Improving product quality
Increasing customer satisfaction
Visualizing manufacturing quality using MES
Creating an RFID system to ensure traceability
Promoting improved awareness of tire safety

Participants from R&D, Business, Productionand Sales headquarters

SupportESG Promotion Department, Corporate Strategy Division, Corporate Administration Division,
Digital Transformation Headquarters

Energy consumption

Value creation■Opportunities and risks posed by climate change
We recognizes that the opportunities and risks posed byclimate change are important management issues.
As a response, we established the Decarbonization Task
Force under the Sustainability Committee in July 2021 to
discuss goals and targets, action plans, KPIs and other issues.
Referencing the CDP*1 climate change questionnaire and

17

TOYO TIRE Sustainability Report(thousand t-CO2e)

2021
268.2*

Japan

204.7

180.7

190.4

US

57.8

51.8

51.0

Asia (excluding Japan)

33.8

31.3

26.8

294.6*

271.6*

284.4*

Japan

70.4

57.1

65.0

2021

US

91.2

86.8

94.2

133.0

127.7

125.2

13,626.4

12,059.8

12,932.2

1.57

1.56

1.40

(thousand GJ)

2020

Total direct (scope 1) GHG
emissions

2020

By region

Total indirect (scope 2) GHG
emissions
By region

7,346.1

6,777.4

6,992.9

Japan

3,991.7

3,594.3

3,842.6

Total other indirect (scope 3)
GHG emissions

US1,810.0

1,704.2

1,753.3

Asia (excluding Japan)

1,544.4

1,478.9

1,397.0

By region

By source type* Third-party verified dataNote) GHG used for calculation is CO2

GHG emissions intensity(t-CO2/million yen)

0.44

0.80

Consumption of purchased
electricity

1,963.3

1,818.8

1,944.2

Reference: Percentage of
renewable energy* in purchased
electricity (estimate)

15.6%

15.7%

15.6%

Japanese plants to renewable energy sources.

(IPCC) and other research institutes, we are also in the pro-

Purchased steam

314.2

295.8

312.2

at our plants and business sites both in Japan and abroad incess of determining long-term climate-related opportunities,* Renewable energy sources can include geothermal, wind, solar thermal and photovoltaic,hydro and biomass.
Note) In 2019, the Toyo Tire Corporation Sendai plant switched its thermal energy sourcefrom waste tires to natural gas.

measures for the Group to take against climate change. Basedon the predicted impact of climate change published by theoccur over the course of continuing Group operations.

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

reduce the CO2 emitted by vehicles.

2.91

physical and transition risks, and financial impacts that may

For more information on our activities, please visit the address below.

develop fuel-efficient tires and other technologies to help

Fuel consumption from renewable energy sources (solar,
waste tires)

United Nations Intergovernmental Panel on Climate Change

WEB■Reducing greenhouse gas emissions
GHG emissions are the main cause of climate change. The
Toyo Tire Group is working to reduce emissions by using
energy effectively throughout business activities both in andoutside of the organization, and in our products.
While increasing production volume does increase energy
consumption, we are promoting fuel conversion and equip-

5,065.8

Final Report, the task force is currently investigating essential

Risk management

35.0%

Fuel consumption from nonrenewable energy sources(gas, oil)

Task Force on Climate-related Financial Disclosures (TCFD)*2
Foundation for value
creation

23.1%

22.4%

Asia (excluding Japan)

Total energy consumption

Responding to climate change

19.5%

21.0%

263.9*■Reducing energy consumption
To help mitigate climate change, the Toyo Tire Group is striving
to reduce energy consumption through effective usage of theenergy required for corporate activities both in and outside
the organization. We are also developing new products andtechnologies that contribute to climate change mitigation andadaptation.

2019

We need to make fundamental preparations tocontinue activities that contribute to a society ofsustainable mobility over the medium to long term, and
it is the responsibility of our business management
to accomplish the mission we have set. The material
issues of this domain are those that will ensure all
corporate activities are optimal and positive.

20.7%

TBR (truck and bus radial tires)

296.3*

Executive Committee

Members338.1

PCR (passenger car radial tires)

2019

Reducing GHG emissions

Leader

253.7(Reference) Production ratio of fuel-efficient tires

GHG emissions

activity themes, targets, KPIs and implementation plans.

Decarbonization Task Force

169.2

2021

For scope 3 emissions, our R&D team is working tojurisdiction of the Sustainability Committee to formulate

Corporate Officer and Vice President of Quality
Assurance, Environment & Safety Headquarters

Energy reduction (estimate)2020

and 2.

Set by the Sustainability Committee in November 2021 and approved by the Executive Committee in December. Announced in February 15 in 2022.

We established the Decarbonization Task Force under the

Sustainability Committee(GJ/km)2019

ment renewals at manufacturing bases to address scopes 1

and we are aiming to be carbon neutral by 2050.

Procuring sustainable natural rubber
Implementing supplier management and responding toconflict minerals risks
Promoting efficient logistics

Reducing the energy requirements ofproducts (fuel-efficient tires)

4,662.4

4,735.7Note) Emissions intensity is total volume from scopes 1 & 2 divided by total sales.

Increasing use of clean energy
From 2022, the Toyo Tire Group is successively converting ourMoving forward, we will expand our use of clean energy
pursuit of decarbonization in all of our corporate activities.

Meanwhile, the Group does see the impact of climatechange as an opportunity, and receives profits from the
TOYO TIRE Sustainability Report18

Domain Ⅲ

Risk management

6■International cooperation for building the sustainable

Implementing supplier management

practices, such as human rights infringements, bribery, andation of suppliers to enable us to investigate back throughRubber (GPSNR)* launched in 2018 under the leadership■Engaging suppliers through guidelines
We have formulated the Toyo Tire Group CSR Procurement
Guidelines and request suppliers to pursue activities inaccordance with these guidelines to help address environ-

The Toyo Tire Group has established a legally and regulatoryof the Tire Industry Project (TIP), which is part of the World

mental and social issues across our entire supply chain fromcompliant Toyo Tire Group Basic Purchasing Policy concern-

Business Council for Sustainable Development (WBCSD). As

production through consumption. We are also appealing to

ing free competition and fair trade in individual markets, anda member, we participate in discussions designed to solve

our suppliers to help convey the purpose and nature of theseseeks to secure appropriate product quality and price throughrelevant issues. Our aim going forward is to continue toguidelines further up the supply chain.

fair transactions.

cooperate with international initiatives and stakeholders and

The guidelines are reviewed whenever there is change

to build a sustainable natural rubber supply chain across ourin social demands or the business environment. We haveJapan, the Ministry of Land, Infrastructure, Transport andwhole value chain.

published the guidelines in Japanese, English, and Chinese as

Tourism is developing initiatives to improve the productivity

we expand our global procurement.

and efficiency of truck transportation and create better

Promote supply chain sustainability

supply chain

There is a worldwide movement to realize the sustainableprocurement of natural rubber. Toyo Tire Corporation is

Our policy

We also formulated the Toyo Tire Group CSR Procurement
Guidelines and the Sustainable Natural Rubber Procurement

a member of the Global Platform for Sustainable Natural

Policy. We work with our suppliers to promote sustainable

to the smelters and conduct surveys to confirm that the raw
materials purchased by the Group are not linked to any suchinhumane acts.

Promoting efficient logistics
As the shortage of truck drivers grows ever more serious inworking conditions for all workers.

procurement that aims to mitigate, prevent, and minimize any

When we announced our goal in 2021 to become

actual or potential negative impact on the environment andcarbon neutral by 2050, we conducted a questionnaire of

To improve the productivity and efficiency of trucksociety, to improve corporate value and competitiveness, andapproximately 350 existing suppliers worldwide to promotetransportation, Toyo Tire Corporation is instigating a modal

decarbonization activities across our entire supply chain. We

shift to ships, national railways and large trailers for the long-plan to further engage with suppliers going forward based on

distance transportation of goods in Japan dispatched fromthe results of the questionnaire.

our factories. In addition, ensuring even safer cargo handlingto secure a stable supply of materials.
We also help support sustainable logistics by improving* A platform that seeks to transcend industrial boundaries and ensure that the production
and use of the world’s natural rubber is carried out in a way that is more socially and environmentally conscious.

the productivity and efficiency of truck transportation and

To strengthen our efforts to address environmental andensuring safe cargo handling operations.
Activity promotion system (as of April 2022)

We established the Supply Chain Task Force under the jurisdiction of the Sustainability Committee to formulate activity
themes, targets, KPIs and implementation plans.
Executive Committeesocial risks in the supply chain, we have also decided towill also fuel further economic growth and help create higher

add third-party assessments by specialist institutions to thelevels of job satisfaction.

late and announce a separate Policy on Sustainable Natural■Fair and transparent transactions
We declared our commitment to free competition and fairtrading in each market in the Toyo Tire Group Code of Conduct.
We conduct our activities in compliance with antimonopoly andsubcontracting law, pursue fair procurement activities, comply
with import and export-related laws and regulations, and ensure
appropriate labeling and product explanations.
For instance, at Toyo Tire Corporation, we seek to ensurebusiness activities are based on fair and free competition by
establishing purchasing regulations that stipulate the thoroughimplementation of fair and non-discriminatory businessdealings and prohibit the development of personal interests
with suppliers. We have also established anti-cartel regulations
to prevent cartels and bid-rigging activities that are prohibited
under antimonopoly law or any action that could be construed
in such a way.

effectiveness of initiatives relating to healthy ecosystems,
human rights, and communities, etc.

Sustainable Supply Chain Task Force

Currently, in addition to conveying this policy to suppliers

LeaderCorporate Officer and Vice President of Business
Headquarters

and asking for their cooperation, we have launched various

Members

Procurement Division, Environment & Safety
Division, Quality Assurance Division, SCM
Divisionexchanging information with environmental NGOs to ensure

SupportESG Promotion Department, Legal Department

activities such as forming contracts with suppliers anda level of traceability that complies with the activity plan
prescribed by our Supply Chain Task Force.
We have also set up a dedicated contact point specificallyfor the natural rubber supply chain. We received no reports in

Procuring sustainable natural rubber

2021.

It is essential to build a supply chain that supports sustainable

and stakeholders to build a sustainable natural rubber supply

procurement in order to maintain a secure and stable supply

chain.

We will continue to cooperate with international initiatives

evaluations of suppliers that we previously conducted independently. We will also look to utilize the evaluation results torelating to deforestation at production sites and infringementof local residents’ rights. We recognize the importance ofstriving to solve these problems across the entire supply chain
from production through consumption.

TOYO TIRE Sustainability Report

Specific initiatives
We have set a goal of reducing the percentage oflong-distance transportation by truck in Japan fromfactories and ports to our regional warehouses andcustomers’ warehouses by 20% by 2025 (compared
to 2020). We are also conducting risk assessments at
all logistics bases in Japan with the aim of halving thenumber of accidents or certain near-miss incidents
relating to cargo handling. We hold regular meetings tointroduce modal shift examples at each site as well as
accidents and certain near-miss incidents and encourage
people to share their opinions to help promote progress
and achieve our targets.
1 Introduced and expanded large containertransportation by national rail from Sendai

2 Introduced a large trailer transportation methodthat reduces the burden on the driver by changing
drivers at transit points

3 Installed safety fences in our Sendai Logistics

supply into the future is an important management issue formain raw material. The natural rubber industry is facing issues

We intend to continue to help create a sustainable society
by pursuing sustainable logistics initiatives.

enhance our due diligence process.

of raw materials. The securing of a stable natural rubber
a business group like ours that uses natural rubber as theoperations will not only reduce the burden on drivers, but■Promoting sustainable procurement
In 2020, GPSNR provided guidance to encourage tire manufacturers to incorporate GPSNR’s Principles of Sustainable
Natural Rubber into their business activities. Following thisdevelopment, we conducted a thorough review of the items
related to natural rubber procurement that were incorporated
into our CSR Procurement Guidelines, and decided to formuRubber Procurement. That policy is designed to improve theSustainability Committee

19money laundering. The Toyo Tire Group enlists the cooper-

Responding to conflict minerals risks■Conflict minerals response
In Europe and the US, manufacturers are legally obliged
to conduct due diligence when purchasing tin, tantalum,
tungsten and gold mined in conflict areas (conflict minerals)
in light of the fact that the money from such purchases may
be used to fund local armed groups and promote corrupt

Center warehouse following a risk assessment(to prevent tire racks from toppling or items fromfalling in the event of an earthquake)

4 Installed traffic mirrors at our Kansai Distribution

CenterTOYO TIRE Sustainability Report20

Domain Ⅲ

Risk management

7

Ensure the fundamentals of manufacturing:
quality and safety

Our policy

Our principle for manufacturing is to provide high-quality andsafe products and services that are useful to society, and westate our basic policy for product quality and code of conduct
in the Toyo Tire Group Global Product Safety Policy.

efficiency by preventing potential risks in the course of business, such as human errors and fraud.

Visualizing manufacturing quality using
manufacturing execution systems (MES)■Visualizing manufacturing process quality data to■Meeting the quality standards of each country
In the face of factors such as greater climate change risks
and increased demand for mobility in emerging countries
due to population and economic growth, many localities are
rapidly introducing new laws and systems addressing theperformance and environmental quality of vehicles to improvetheir fuel efficiency and reduce their CO2 emissions. We are

improve processes

To provide product quality that satisfies customers, we at
the Toyo Tire Group aim to build a quality assurance systemthat can predict and prevent issues from occurring in the
manufacturing process.
To do so, we have introduced automatic measuring
instruments into the tire manufacturing process, and are

We operate a product quality management system based

working to strengthen our response to quality standards

launching a system that digitally collects and visualizes

on IATF 16949 (or ISO 9001 at some production bases) to takethroughout the Group by meeting the growingly complex

quality- and production-related information from production

measures against risk. We also run activities to promote tirequality-related regulations in each country. At the four tire

equipment. This will ensure quality in each manufacturingsafety awareness to help create a society without accidents.

testing and evaluation sites in Japan, we test our tires inprocess, and make it possible to analyze and monitor

compliance with ISO/IEC 17025 (general requirements for thecollected data to detect changes in process trends.

Activity promotion system (as of April 2022)

competence of testing and calibration laboratories) since ourinitial certification in 2013, and have been working to improve

Quality Assurance, Environment & Safety Headquarters is

test accuracy and reliability to continue conducting tests in

responsible for promoting initiatives in this area, and reports

accordance with standard requirements.

progress to the Sustainability Committee.
Executive
Committee

Sustainability Committee
Quality Assurance Committee
Quality Assurance, Environment & Safety Headquarters● Quality Assurance Division
Quality assurance departments of manufacturingsubsidiaries
R&D Headquarters● Technology Development Division
Sales Headquarters● Americas Business Development Division● Original Equipment Sales Division● Europe, Africa & Middle East Sales Division● Asia & Oceania Sales Division
Group sales companies

Improving product quality■Improving the development & production process
In manufacturing, we believe it important to achieve greater
quality in upstream business processes. We aim to not only
raise the quality of the products and services we introduce tothe market, but also that of the development and production
process itself.
For our Group’s newly developed products, the Quality
Assurance Division checks the design reviews that are per-hold annual Global Quality Management Committee (Global

In May 2022, the Global Data Service Organization for Tires

QMC) meetings, bringing together quality assurance manag-

and Automotive Components (GDSO) was established as aners and relevant representatives from manufacturing bases

international non-profit organization working to standardize

worldwide to share and discuss each site’s initiatives related

and share tire data in the industry. We are creating technology

to product quality, improvement of quality systems for produc-to equip tires with radio frequency identifier (RFID) tags, andtion, the logistics quality demanded by business partners, andinvestigating how to utilize the acquired data.

supplier quality.

Increasing customer satisfaction■Maintaining and improving quality and satisfaction
As a manufacturer, we understand that our products andservices link us to both customers and society, and devote
ourselves each day to maintaining and improving productquality at our production sites. We are also conscious of
improving the “quality of organizational citizenship behaviors”
at all workplaces, and strive to provide products and services
designed with a customer-centric approach.
We also conduct ongoing product satisfaction surveys inmarkets where each product is available, and relay customer
requests as feedback to design and production sites.

mation (RPA) software that automatically processes routine■Responding to feedback from consumers
Every piece of feedback that we receive from our customers
is valuable and provides us with opportunities to understandtheir expectations for the Group and improve our products
and services. In 2021, our Customer Relations Department
received a total of 2,164 inquiries in Japan. We respond tophone and online contact from customers both accurately andtasks. Through this, we aim to see how it improves operational

simply.

formed at each step, from product planning to the production
preparation stage, to ensure that reliable quality is designed infrom the start.
At our Tire Technical Center, we are verifying and working
towards full-scale implementation of robotic process auto-

21

In addition, our tire and automotive parts businesses each

TOYO TIRE Sustainability ReportCreating an RFID system to ensure
traceability

TOPICS
Tire safety awareness activities in 2021
As a tire manufacturing and sales company that
supports a society of safe mobility, we believe that
one of our most important duties is to help drivers
learn how to use tires appropriately.
Since the emergence of COVID-19, demandfor cars as a mode of transportation has increased,
and with it the need to further improve awareness ofsafety precautions, such as regularly checking tirepressure and driving carefully in adverse weather.
Toyo Tire Corporation and sales subsidiary Toyo
Tire Japan Co., Ltd. thus run tire safety awarenessactivities to help meet this need.
In 2021, nearly 700 drivers participated at six
locations around Japan, with suitable precautions
taken against the spread of COVID-19.
Using our proprietary driving simulator,
participants experienced the difference between
worn and new tires when breaking on wet roads orgetting a puncture, maneuverability under different
tire pressures, and hydroplaning. The activity was
successful in improving awareness of tire safety,
with participants reflecting that, “I’ll be more careful
driving on rainy days,” and, “I realized I need to think
more about my car’s tires.”
We will continue using our driving simulator tofurther boost interest in tires and help make drivers
aware of how to use them properly.

Promoting improved awareness of tiresafetyAs a tire manufacturing and sales company, we at the Toyo
Tire Group see it as our duty to educate customers on theimportance of regular tire inspections for improving safety.
Each year we run tire safety awareness events.

A participant using the driving simulator

TOYO TIRE Sustainability Report22

Sustainability and ESG themes beyond
the material issues

Challenges

Environmental

Initiative●C onserving water

ES● Efficient use of water inenvironments

business operations●C ontributing to the●W aste reduction andcircular economy

24 sites* belonging to Toyo Tire Corporation and relatedcompanies, for total scope 1 energy-derived CO2 emissions(excluding off-site mobile units), scope 2 emissions, total
water intake, breakdown of water intake, total water discharge,
breakdown of water discharge, and total water consumption● Reducing toxic chemical

pollutionuse* Toyo Tire Corporation (Headquarters, Sendai Plant, Kuwana Plant (tire and automotive parts), Hyogo Manufacturing Complex, Corporate Technology Center, Tire Technical Center, Automotive Parts Technical Center, Miyazaki Tire Proving Ground,Saroma Tire Proving Ground); Fukushima Rubber Co., Ltd.; Toyo Soflan Co., Ltd.;
Ayabe Toyo Rubber Co., Ltd.; Orient Machinery Co., Ltd. (Headquarters, Sendai
branch, Rokko branch); Toyo Automotive Parts (USA), Inc.; Toyo Tire North America
Manufacturing Inc.; Toyo Automotive Parts (Guangzhou) Co., Ltd.; Toyo Tire (Zhangjiagang) Co., Ltd.; Toyo Tire (Zhangjiagang) Co., Ltd.; Silverstone Berhad; Toyo Tyre
Malaysia Sdn. Bhd.; Toyo Rubber Chemical Products (Thailand) Limited

Reducing volume of water withdrawal and discharge

Environmental measures
Our policy

In 2021, we formulated our Global Environment Policy. We
support international standards and adopt a precautionary
approach in our efforts to help solve global climate change
and other environmental challenges across the value chain.
We take early action to address environmental issues throughthis precautionary approach such as risk assessments to
support international norms, including the United Nations(UN) Rio Declaration on Environment and Development andAgenda 21 and 10 principles of the UN Global Compact, andGoal
Aim to reduce the impact of our business activities in waterstressed areas to zero by 2030.
Plan to reduce water withdrawal at our Japanesemanufacturing bases by 10% compared to 2018 levels over the
five-year period (2019-2023), and conduct detailed assessmentsof water risks at our manufacturing bases outside Japan to set
targets.

Total water withdrawals acrossall regions

2019

2020

2021

3,737.3*

3,399.9*

3,362.8*

Surface water (mountain water)
Groundwater

The Environment Subcommittee within the Company-wide
Safety and Health Committee determines annual policies,
targets and plans, evaluates progress towards plans, andimplements improvements. The results are reported to the
Sustainability Committee.
Sustainability Committee
Quality Assurance, Environment & Safety Headquarters● Environment & Safety Division
Group companies (manufacturing) environment
departments
Company-wide Safety and Health Committee
Environment Subcommittee

Initiative

Conserving water environments▲

Reducing water risk

any necessary responses to European Registration, Evaluation, Authorization and Restriction of Chemicals (REACH)

Verification criteria

regulations, the Global Automotive Declarable Substance List

ISO14064-3: 2006, related laws and regulations, and theassurance organization’s protocol(GADSL), or revisions in business partner’s lists of managed
chemical substances.
We are working to maintain a 50% or higher reductionin VOC emissions compared to 2000 levels and continue
to reduce them in accordance with the Japan Rubber
Manufacturers Association’s voluntary action plan on reducing

Contributing to the circular economy

VOC emissions. The plan covers 17 typical substances used

0.00

19.5*

17.2*

We believe it is the social responsibility of global manufacturers

in the rubber industry, with rubber solvents constituting over

2,726.8

2,511.6*

2,518.8*

to make it their mission to help transition our society from one

60% of the Group’s emissions. We have currently reduced

that consumes resources to one that recycles resources.

VOC emissions by roughly 80%, far exceeding our goal,

Resource recycling

By source

Activity promotion system

Third-party water (municipal
or other public and private
water supply facilities)

1,010.5

Total water withdrawals inwater-stressed areas

87.2

77.2

87

Surface water (mountain water)

0.00

0.00

0.00

Groundwater

86.1

76.1

86.1

product design and production processes to ensure more

868.7*

materials as the scale of our production expands. We strive tosecure a stable and sustainable supply of natural rubber, our

1.10

1.11

Water discharges

manufacturing methods and processes.
We manage fluorocarbons, which greatly impact ozone
layer depletion and global warming, in accordance withstage. At the same time, we are also working hard to promote

Japan’s Fluorocarbon Emission Control Law, and control

research and development of new materials and improve

leakage at less than 1,000tCO2.
Transporting hazardous waste (substances subject to PRTR law)

0.92

Handling volume

(t)

2019

2020

2021

2,977.5

2,592.3

3,011.0

Resource recycling initiatives

Emissions

164.7

117.1

105.0

Heat recovery from waste incineration● Switch from wooden to heavy duty resin pallets● 
Exploring alternatives to specified chemical substances● 
External initiatives for risk assessments of chemical substances,initiatives for addressing tire wear particles and used tires

Movement volume

88.3

77.9

91.3

Note) Disposal method for hazardous waste (waste requiring special management): Determined according to information provided by waste disposal contractors
Transportation of hazardous waste (substances subject to PRTR law): Disposed of by
the Group●(Thousand kL)

2019

2020

2021

2,194.8*

2,022.2*

2,014.9*

Main raw materials(Thousand t)

2019
Total volume of main raw
materials

2020

2021

314.0

252.3

306.9

The use of water is both indispensable for human life andBy destination

welfare and a human right recognized by the UN. For that

Surface water (public water)

1,525.0

1,475.3*

1,487.4*

187.6

148.1

177.7

reason, the Toyo Tire Group considers water risks in corporate

Third-party water (municipal
wastewater treatment facilities)

Volume of renewable raw
materials

669.7

546.9*

527.5*

Volume of non-renewable
raw materials

126.4

104.3

129.2

Total water discharges in waterstressed areas (third-party water)

86.9

77.0

86.8

Ratio of recycled materials inrubber raw materials

1.2%

1.2%

1.2%

activities to be a key management issue.

but we will reduce emissions even further by improving ourprime raw material, and other materials at the procurement

efficient material use.

* Data verified by a third party.
Note) One of our manufacturing bases in Japan uses water sourced from surface water(mountain water). This was classified as third-party water until 2019, but following athird-party verification in 2020, it was changed to surface water (mountain water).
At present, all our water withdrawal is fresh water (water with the total dissolved solids
of 1,000 mg/L or less).

Total water discharges acrossall regions

The Toyo Tire Group is using an increasing amount of raw

826.8*

By source

Third-party water (municipal
or other public and private
water supply facilities)

the SDS system stipulated by the CSCL. We also implement

January 2021 to December 2021

SGS Japan Inc.

(Thousand kL)

nizations with a safety data sheet (SDS) in accordance with

Verification period

Third-party assurance organization
Water withdrawals

Preventing chemical pollution
For necessary raw materials for continuous operations within
the Group, we manage chemical substances in accordancewith the laws and regulations of each market in which we
operate and our business partner’s guidelines.
For instance, we have strictly managed the use, storage
and disposal of specified chemical substances in Japan
based on the Chemical Substances Control Law (CSCL). In
accordance with the Pollutant Release and Transfer Register(PRTR) system, we assess the amount of targeted chemical
substances emitted or moved and register with the relevant
authorities. When transferring or providing other organizations
with targeted chemical substances, we provide those orga-▲

fulfil our responsibilities.

Executive
Committee

Verification scope

recycling●P reventing chemicalG

Third-party assurance
To ensure the accuracy and reliability of the data that we
disclose, we have obtained the assurance of a third-party
organization for our fiscal 2021 environmental data.

* Data verified by a third party.
Note) At present, all our water discharge is fresh water (water with the total dissolved solids
of 1,000 mg/L or less).

23

TOYO TIRE Sustainability Report

TOYO TIRE Sustainability Report24

Sustainability and ESG themes beyond
the material issues

SocialChallenges

InitiativeES●M aintain physically and● I mproved awarenessGdisasters, infectious diseases and other crises

mentally healthy and safe
working environments
for all employees andrelevant contractors●B uild resilience to natural

Executive
Committee

Sustainability Committee
Crisis Management Committeeof respect for humanrights

Quality Assurance, Environment & Safety Headquarters● Environment & Safety Division
Occupational health and safety, human resources, and general affairs departments of eachGroup company● Prevention ofhuman-caused
disasters●E stablishment of

BCP and BCM drills

Company-wide Safety and Health Meeting
Safety & Disaster Prevention
Submeeting
Health Submeeting

Upholding human rights

business. On Human Rights Day each December 10, the President of Toyo Tire Corporation sends a message on human

Our policy

rights to all employees of the Group. The message for 2021

Initiative

In the Toyo Tire Group, the majority of employees work outsidestressed the importance of having a foundation of deeplyof Japan, and more than half of our consolidated net sales arediverse talent to generate value through our business, and ofgenerated overseas. Our business is expanding globally, anddemonstrating sincerity with all stakeholders, as declared in

we have growing opportunities to communicate with diverse

our philosophy.

Creating safe workplaces
We are working from the perspectives of equipment, personnel,
and management structure development to create safe workplaces
at all business sites.
For equipment, we promote safety by conducting hazard
risk assessments, and manage hazards through elimination,
containment or interlock based on equipment safety standards.
In terms of personnel, we strive to reduce risks in order toeliminate accidents caused by human error, and improve andmaintain awareness to change human behavior. Along withvisualizing the residual risks that remain after improving equipment
safety, we extensively manage them by indicating high residual
risks, implementing operation standards, employing stop-call-wait,
point-and-call and hazard prediction activities, and holding voluntary
small-group activities for improvement. At manufacturing sites where
employees with diverse backgrounds work, we make announce-

stakeholders both in and outside of the company, making it

The Toyo Tire Group will remain committed to improving

ever more important to act in a way that respects the humanawareness of human rights and preventing adverse impacts

rights of everyone involved in our corporate activities.

on them within our corporate activities and workplaces.

In January 2019, we enacted the Global Human Rights& Labor Policy, which supports the Universal Declaration of
Human Rights, ILO Declaration and 10 principles of the United
Nations Global Compact.
As our business globalizes and our stakeholders diversity,
we strive to carry out our business in a way that respects thehuman rights of everyone involved in our corporate activities,
including those in our workplaces, at our suppliers, and within
the communities where we operate. This will help us contribute to creating an inclusive society that supports everyone,

Internal reporting system
Since 2006, the Group has operated an internal reporting
system for all compliance issues, including human rights. We
investigate all reports received and take remedial measures toaddress each problem. We also continuously conduct training
based on specific cases in order to detect potential issues at
an early stage and prevent occurrence.
In 2021, there were again reports of concerns about
harassment, which were handled appropriately.

including socially vulnerable people, by protecting them fromexclusion, conflict, loneliness and isolation. Group employees
also recognize that they may potentially cause, contribute toor be complicit in adverse impacts on human rights throughtheir own activities, and work to prevent this.

Executive
Committee

Sustainability Committee
Corporate Headquarters● Corporate Infrastructure Division
Human resources and general affairs departmentsof each site or Group company

25

TOYO TIRE Sustainability Report

our initiatives for disaster preparedness and mitigation.
Each base engages in activities such as practicalfirefighting training and no-scenario earthquake drills, which
are being held repeatedly to improve their effectiveness andincrease participation. Firefighting training is conducted forhazardous materials in compliance with the National Fire
Protection Association’s NFPA 600 standard. In Japan wehave held fire prevention inspector training since 2018, and324 employees have participated as of 2021. Thanks toments in multiple languages and use illustrations and color-coded

these continued efforts, there were zero major fires reported

warning signs.

in 2021, and 25% fewer minor fires compared to 2020.
In regions outside of Japan, we are also engaging inManaging occupational health and safety tomeasures and disaster preparedness drills according to theglobal standards (Mentally and physically

including OSHMS, GSC and OHSAS 18001. We have compiled

disaster risks of each area.

safe and healthy working environments for

the Industrial Accident Response Manual for guiding prompt andadequate responses to prevent damage from spreading whenlabor-related accidents occur, with the aim of protecting employee
safety and company credibility, and keeping personal and physicalCrisis management (responding resiliently to

Our policy

losses to a minimum. The manual stipulates specific steps fornatural disasters, infections and other crises)

Under the direction of senior executives, we promote Group-

handling labor-related accidents, including the necessary risk

wide health and safety management focused on implementing

management systems and procedures in normal times, as well as

Our policy

necessary measures based on risk assessments, with laboractions for employees to take and what to do in emergencies.

To strengthen the Group’s ability to respond to crises, we will

and management working together to operate a system based

In Japan, a monthly meeting is held (currently online) between

continuously improve our efforts to reduce our risks and, inon Guidelines on Occupational Safety and Health Manage-

the Environment & Health Department and staff in charge of safety

the event of an emergency, minimize damage and loss andment System (OSHMS Guidelines) developed by Japan’sand disaster management at all sites. The meetings allow each

restore operations promptly.

Ministry of Health, Labour and Welfare.

site to share information on and horizontally deploy measures to

Initiative

Raising awareness of respect for human rights
We work continuously to raise awareness of the company’s
responsibility to respect human rights by providing all Group
employees e-learning sessions on our Corporate Code of
Conduct, and level-specific and other training organized by
the HR department that focuses on human rights issues withinquake and tsunami and other major disasters to strengthen

expanding occupational health and safety management systems,

Corporate Headquarters leads promotion of activities andreports progress to the Sustainability Committee.

Creating disaster-resistant workplaces
We have improved our Group fire prevention management,
and used the experiences gained through the 2011 earth-

In the development of management structures, we are

all stakeholders)

Activity promotion system

Promoting health management
The Toyo Tire Group views the management of employee
health from a business perspective and supports the ideaof strategic health management. We have been focusing on
greater prevention of mental health issues, which are the maincause of long-term absences.
For example, as part of work engagement efforts andbuilding the basic foundation for health management, in Japan
we provide mental health care seminars for all employees,
from managers and supervisors to general staff, as well as
e-learning for mental health. To better understand employee
health issues and investigate necessary measures, we havealso been conducting stress checks at all business sites inJapan even before it became required by Japan’s Industrial
Safety and Health Act. Over 90% of employees undergo acheck each year, and we are analyzing the collective results to
help improve working environments.

Activity promotion system

At the joint labor-management Company-wide Safety and
Health Meeting, annual policies, targets, and plans forprevent and mitigate disasters, thus preventing similar incidents

Activity promotion systemfrom occurring at other sites.

The Crisis Management Committee has been specially es-

Lost-time accident frequency rate at manufacturing bases

tablished under the Executive Committee. In accordance(number of lost-time accidents per million hours worked)

with crisis management regulations, we have formed a crisis

occupational health and safety are decided and plan progressJapan

0.17 (0.14 in 2020)

management system supervised by the head of crisis man-is evaluated and improved. The results are reported to theOutside Japan

0.00 (1.69 in 2020)

agement (the Vice President of Corporate Headquarters). For

Sustainability Committee.

Note) Rubber product manufacturing industry average in Japan is 0.44.

TOYO TIRE Sustainability Report26

Sustainability and ESG themes
beyond the material issues

SocialSustainability and ESG themes beyond
the material issues

each major type of potential crisis that may seriously impact

Initiative

the Group, crisis management leaders have been appointed

Environmental conservation
We realize that Group corporate activities have the largest
direct environmental impact in the areas around our manu-

to create individual management manuals and establish measures for both normal times and in case of emergency.

facturing bases. We therefore work to build understanding of
Initiative

and trust in these activities through dialogue and information

Business continuity plan development and business
continuity management drills
The Toyo Tire Group is also systematically developing
business continuity plans (BCP) and conducting business
continuity management (BCM).
In 2019, our US subsidiaries formulated a BCP and an
emergency response plan in case of disaster. These include
emergency communication protocols for use during apandemic or natural disaster, emergency medical procedures(such as securing resuscitation equipment and training on itsuse), and measures to ensure business continuity.
In 2021, we also held BCM drills at the Toyo Tire
Corporation headquarters and Tire Technical Center based oneach site’s BCP. Each organization reported on their priority
responses using simulated drills and discussed challenges forbusiness continuity under instruction from the director of theEmergency Countermeasures Headquarters.

sharing with stakeholders in the surrounding areas, andon the “Toyo Tires Midori no Tsunagari Mie” initiative, which

The Toyo Tire Group practices the principles of Japan’s Corporate Governance Code in an appropriate fashion to ensure effective corporate

and a total of seven events were held from April onward under

governance. We established the Toyo Tire Group Charter of Corporate Behavior as a set of common principles for all Group companies tosufficient infection prevention measures, with 197 employees

ensure we always prioritize the desire to be useful to society through proper working practices as the basis for our decision-making and pursue

working on the “Green Trail” and “Green Plaza” facilities. We

integrity in corporate activities to help realize a sustainable society. We also formulated the Toyo Tire Group Code of Conduct to assist all

are continuing conservation and preparation so that local

executives and employees in implementing the Charter of Corporate Behavior, and seek to instill that Code across the whole Group.

residents can safely use the Green Trail, and the adjacent local
elementary school may use the Green Plaza as an outdoor

Activity promotion system■ Governance structure (as of April 2022)

classroom.

Corporate governance system
Our corporate governance system consists of
the Board of Directors, which is responsible fordecision-making and supervisory functions, and,
under that, the Nomination & Compensation
Committee, which acts as an advisory body to theBoard of Directors on matters relating to personnel
affairs, compensation and other matters pertaining
to directors. We also have an Executive Committeethat makes decisions on business execution, various
special committees that deliberate and consult on
individual fields, and an Audit & Supervisory Board,a body that audits the Board of Directors and theexecution of directors’ duties. This system enables allthese functions to be fully exercised.

General Meeting of
Shareholders (annually)

Forest conservation project (Toyo Tire Kuwana Plant)

Sustainability Committee

TOYO TIRE Sustainability Report

Chair: Chairperson of the Board(Not concurrently serve as directors)
Members: 9 directors (including 3 outside directors)

Executive Committee(twice a month)
Chair: President

Individual divisions

Group companies

Special committees
Sustainability Committee quarterly

Chair: President

Compliance Committee quarterly

Chair: Chief Compliance Officer(appointed by the Board of Directors)

Crisis Management
Committee

Chair: Vice president in charge of crisis
management

quarterly

Organization & Person- quarterly
nel Committee

Chair: President

Technology Committee monthly

Chair: Vice President of R&D Headquarters

Quality AssuranceCommittee

quarterly

Chair: Vice President of Quality Assurance,
Environment & Safety Headquarters

Investment & Credit
Committee

General Manager of the Corporate
twice a month Chair:
Administration Division

General Meeting of Shareholders
ReportElection/Dismissal
ReportInstruct/Order

ReportElection/
Dismissal

Election/
Dismissal

ReportBoard of Directors
Proposal
Election/
Nomination &Dismissal
Compensation
ReportCommittee
President
ReportReport

Audit
ReportAudit

Cooperation

Audit &
Supervisory
Board

Cooperation

Exevution

Internal Audit Dept.

Cooperation

Reporting Hotline

Chief Compliance Officer
Special committees
Sustainability Committee
Crisis Management Committee

Executive
Committee

Organization & Personnel Committee
Technology Committee
Quality Assurance Committee
Investment & Credit Committee
Compliance Committee

Compliance Department
Report/Consult
Report/Cooperation

Cooperation

AdviceCooperation

Investigation
Individual divisions

Corporate counsel

27

Chair: President
Nomination &Members: 5 directors
Compensation Committee (including 3 outside directors)

Board of Directors(monthly)Internal audit

Environmental Protection Fund Steering
Committee

ous growth of the automotive industry.
* An industry-labor organization in the Kansai region that supports career education atelementary, junior high and high schools.

Internal control system
We determine our basic policy for building of internal
control systems at Board of the Directors meetings
and then put appropriate systems in place. We
review the basic policy each year to reflect changes
in our business environment and other factors. The
Board of Directors resolves any reviewed items as
we strive to develop and operate more effective
internal control systems.
In addition to establishing and operating ourreporting hotline for employees to report and consult
directly on compliance issues that may develop into
crisis events, we have created multiple reporting
routes and established a system for conveying
necessary information to the Group’s governancebodies.

Members: 4 Audit & Supervisory
Board members (including 3
outside members)

Audit & Supervisory
Board

Compliance training

Corporate Headquarters● Corporate Infrastructure Division
Quality Assurance, Environment & Safety Headquarters● Environment & Safety Division
Human resources and general affairs departmentsof each site or Group company

Support for educating the next generation (Career training)
We believe that nurturing the talent who will drive thesustainable growth of the automotive industry is crucial toensure both business continuity and a society that is betteredthrough mobility. This is why we have supported the Kansai
Career Education Support Council’s* Jonetsu Kyoshitsu (Classof Passion) since 2013, using the Toyo Tire Group's resources
to organize career talks that foster students' interest in
manufacturing and help them develop career awareness froma young age.
Moving forward, we will continue holding both in-person
and online talks on a case-by-case basis, and use ourresources to communicate the wonder of automobiles andtires to help foster the next generation and drive the continu-

Chair: President

Accounting auditor

Executive
Committee

of Charter of Corporate
Behavior and Code of
Conduct

Sound governanceToyo Tire Group Charter of Corporate Behavior
TOYO TIRE Group Code of Conduct

initiatives.

positive corporate culture
and business practices

G

local communities. The project marked its 8th year in 2021,

Furthermore, at manufacturing bases that are predictederal affairs departments of each base work together to lead

● Improved awarenessOur policy

development of the next generation, and community develop-

Corporate Headquarters and the human resources and gen-shareholders and investors●F urther establish apromotes environmental conservation and coexistence withstakeholders to contribute to environmental conservation,

Activity promotion system●R egular dialogue withAt the Kuwana Plant, we work in partnership with Mie
Prefecture, the local town of Toin and the NPO Mori-no Kaze

our Group resources and working in open dialogue withbiodiversity.

of philosophy among
executives and employees

growth.

We will create shared value with local communities by utilizing

approach towards this increased risk on the surrounding● Improved understanding

management that meets
societal needs andhas a lasting positive
reputation for value

generates direct benefits for local life and leads to sustainable

Our policy

scale of our business grows, we will take a precautionary

Initiative●E ngage in corporateESbiodiversity conservation in recognition that biodiversity bothsolve local issues)

to have a particularly significant environmental impact as theGovernanceengage in environmental conservation. We also promote local

Working with local communities (Helping

ment within the scope of impact of our corporate activities.

Challenges

Compliance Officer

TOYO TIRE Sustainability Report28

Sustainability and ESG themes
beyond the material issues

GovernanceCorporate governanceInitiative

Instilling our philosophy
All executives and employees across the Toyo Tire Group conduct their work based on our corporate philosophy, and wehave been instilling that philosophy into all employees since it
was first determined in 2017.
Our philosophy is a written expression of the thoughts andideas that the Group most values. We have positioned ourcompany philosophy as a pinnacle concept that embodies theprecious founding spirit we pass on to future generations. We
have defined our corporate purpose in our mission and clearlystated in our company vision the type of company we need
to become to fulfill that mission. We have also determined ourfundamental values, as a basis for the thoughts and ideas that

Engaging in dialogue with shareholders and investors
Toyo Tire Corporation holds an annual General Meeting of
Shareholders, and quarterly financial results briefings. Top
management conveys its opinions on performance trends,
business environments and future outlook for the Groupto institutional investors and securities analysts when weannounce interim and full-year business results. In addition
to these activities, we also seek to promote understandingof Group strategy by creating multiple opportunities for thecompany president and other senior executives to engage ina dialogue on the issues that interest institutional investors
and securities analysts, and providing quarterly opportunities(individual interviews) for investors to communicate and ask
questions of IR staff. We also respond proactively to dialogue
requests from institutional investors around the world either inthe form of individual interviews or conferences.

all executives and employees should wish to cherish going

announced in February 2021, we reiterated that our corewith the Antimonopoly Act, getting the Audit Department to

Russian, German, Italian, Chinese, Thai, Malay and Portuguese).

check the status of compliance with the Cartel Prevention Rules,
and conducting training (including e-learning) for related parties.

Conducting compliance awareness surveys
We conduct annual compliance awareness surveys toascertain the degree of compliance-related awareness among
employees and aid our future endeavors.
response rate

2021 compliance awareness survey
result92.5%(81.6% in 2020)

Implementing activities to promote compliance

94

Made one or more attempts to raise compliance%awareness over the past year
(95% in 2020)
Degree of compliance awareness and understanding

Compliance(88% in 2020）

plan was designed to realize that philosophy.

We ensure that all executives and employees within the Groupprioritize compliance in their day-to-day operations.

ness activities. In 2021, we conducted e-learning on anti-bribery
themes for employees working in the headquarters, R&D divisions
and administrative departments at production sites.
We know that discovering any corrupt practices or bribery
involved parties, but also significant damage to our corporate
value through the suspension of transactions or the imposition ofsocial sanctions. As such, we work hard to prevent any such acts
as part of our corporate social responsibility.

Degree of embedding of compliancepurpose was to realize our philosophy, and that our businessAnti-corruption initiatives
The Group strives to ensure fairness and transparency as thefoundation for conducting sound business activities. We haveestablished the Global Anti-corruption and Anti-bribery Policy
along with our Anti-bribery Rules and are developing activities toensure these rules are instilled and properly operated in our busi-

would risk not only potentially huge fines or the detention of89%* Toyo Tire compliance: Instead of simply adhering to laws and regulations, we mustcomply with laws, regulations and internal rules, and be guided in our actions by akeen sense of ethics.

Our policy

We have added an introductory lecture on our company

tions, such as establishing a Consultation Desk for Complianceshould act (available in nine languages: Japanese, English,

Understand what compliance means

forward.
In the new business plan, Medium-term’21 Plan,

the underlying way in which each Group executive and employee

94%

Remain conscious of compliance when
conducting own work activities（94% in 2020）

Information security

philosophy at the start of in-house training programs. Training
for general managers includes case work to help participants

Activity promotion system

understand the importance of instilling visions and strategies

The Chief Compliance Officer and the Compliance Committee

derived from our philosophy in the workplace as well as

lead initiatives in this area and report results to the Sustainability

group work to convey how this philosophy pervades eachCommittee.

workplace. The training has helped raise awareness of theneed to instill our company philosophy by sharing issues andExecutive
Committee

Compliance Committee

initiatives pursued by other divisions.
Going forward, we will strive to create an environment

Corporate Headquarters● Compliance & Legal Division
Human resources and general affairs departments of each site or Group company

in which we instinctively employ our philosophy through ourwork.

Board of Directors’ initiatives
The Toyo Tire Board of Directors meets once a month inprinciple to decide on important matters and supervise theexecution of business by directors. The Board met 17 times
in 2021, including some extraordinary meetings. Outside
directors attend Board of Directors meetings and otherimportant meetings to encourage an active discussion andmonitor and supervise company management.
Since 2017, we have conducted an annual registeredquestionnaire of all directors and Audit & Supervisory Board
members regarding the operation, composition, activities
and other features of the Board of Directors to help us
analyze and evaluate its effectiveness. To ensure a fair result,the aggregation, analysis and evaluation of the responses areoutsourced to an independent body, and we use the result toimprove the functions of the Board of Directors.

Sustainability Committee* The managers of general affairs at each Group
company promote activities in accordance with local
laws and regulations and the Group’s own policies.

Initiative

Instilling the Group Charter of Corporate Behavior andCode of Conduct
We have established the Toyo Tire Group Charter of Corporate
Behavior as a set of common principles for all Group companies
that ensure our business activities are conducted in good faith,
and the Toyo Tire Group Code of Conduct to help each executive
and employee implement the Charter. The Charter and the Codeare reviewed when appropriate and any necessary revisions areresolved by the Board of Directors. Group companies locatedoutside Japan use the Code of Conduct as a basis for formulating their own behavioral guidelines that reflect differences inlocal laws, regulations and customs.
pliance across the Group by creating and distributing a common
edition of the Global Code of Conduct Handbook that stipulates

TOYO TIRE Sustainability Report

Our policy

tion of healthy business activities.

disasters and crime.

■ Awareness of the reporting hotline in Japan
（%）
100

87

2020

2021

88 87

54 52 51

60

20

5

(Toyo Tire Corporation)

management and take appropriate and timely measures. To
earn the trust of our customers and society at large, we aredeveloping information security across the Group that willprotect our information assets from the threat of accidents,

We hold practice drills for employees on targeted email

49 52

40

Internal reporting
hotlinewe have to recognize that it could risk influencing our business

attacks and conduct regular security checks.

800

The evolution of IT poses multiple threats to system security, so

Initiative
2019

60

We instill awareness of the Code and further enhance com-

29

Whistle-blowing system
The Group has been operating a whistle-blowing system since2006. In Japan, we respond to anonymous reports from both
inside and outside the company, and have established contact
points that can be used by executives, employees and suppliers.
We are establishing similar systems at bases outside Japanand striving to ensure fairness and transparency as the founda-

External reporting External reporting
hotlinehotline(lawyer’s office)

5

5

None

(Dial Service Co., Ltd.)

Promoting DX (Achieving borderless andcentralized management through ERP reform)
Our policy

It is becoming increasingly important to utilize business data as
the globalization of business progresses. We will promote the even

Preventing anti-competitive conduct
The Toyo Tire Group is building compliance frameworks andsystems and promoting education and awareness-building
activities to ensure thorough compliance with competition laws
and regulations in individual countries. Specifically, we oblige our
employees to submit prior applications, follow-up reports andexclusion applications relating to any contact with competitors
based on the Cartel Prevention Rules, as well as a written pledge
regarding the upholding of antimonopoly laws. We also pursue
various initiatives to ensure compliance with laws and regula-deeper use of data to help the entire Group make appropriate
management decisions by developing a management platformthat facilitates the rapid collection and centralized management ofaccounting, sales and other digital data.
Initiative

We have started introducing a core system that aligns withinternational standards from 2022, starting with our new plant in
Serbia and gradually moving onto our headquarters, distribution
companies and other manufacturing plants.

TOYO TIRE Sustainability Report30