Introduction

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Taskforce on Nature-related Financial Disclosures (TNFD)

VisionStrategy

Materiality

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Governance

Data

Human Rights

Our policy

Our policy

In 2023, the Taskforce on Nature-related Financial Disclosures (TNFD) published version 1.0 of its recommendations andthe Science Based Targets Network (SBTN) published version 1.0 of its guidance for setting Science Based Targets forNature (SBTs for Nature). These two documents clarify the role of companies in avoiding, reducing and restoring the impactof their business activities on nature, increasing the demand on companies to take initiatives and disclose information. As acompany that relies on natural capital in our business, we developed a long-term roadmap in 2023 that recognizes natureand natural capital. Going forward, we will implement initiatives at each phase in accordance with the roadmap and we will
gradually disclose information in line with the TNFD recommendations.

The Global Human Rights & Labor Policy introduced in January 2019 sets out our clear commitment that, as our businessglobalizes and our stakeholders diversify, the Toyo Tire Group strives to carry out its 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, contributing to creating an inclusive society.
We also engage with our suppliers to ensure that they understand our policy and encourage them to work with us tofulfill our common corporate responsibility to uphold human rights.

* Taskforce on Nature-related Financial Disclosure* Science Based Targets for Nature

Organizational responsibilities (April 2024)

Phase1
Assess current status
2023〜2025

Phase2
Minimize impact

Phase3Create positive impact〜2030〜2050

Water Resources● Track basic data
● Assess risks● Set targets for high-risk sites● Reduce water withdrawal andminimize wastewater impact athigh-risk sites● Include water requirements insupplier contracts

WASH*3● Identify WASH issues at ourbases, watersheds, and supplychains● Improve problem areas● Include WASH requirements insupplier contract

Biodiversity● Identify dependencies andimpacts● Assess risks and opportunities● Minimize impact at high-risksites

Governance andCommunication● Increase knowledge on naturalcapital (water and biodiversity)● Strengthen internal governance● Enhance stakeholder
communication* 3 Water, sanitation and hygiene

Address issues atwatersheds throughcollaboration withstakeholders●Entire Group ●Outside Japan ●Suppliers

In 2023, we implemented Phase 1 (assess current status) with respect to water resources, which are essential to our business activities.

Water risk assessment• Assessment indicators:

Of the two Aqueduct water resource risk assessment indicators,Water Stress and Water Depletion, Toyo Tire Corporation uses
Water Depletion to conduct its risk assessments because that isa more pertinent representation of the water resource situation inthe basin.
Water Depletion ＝Total water consumption in the basin*4
Volume of usable water in the basin*5*4 Water consumption: The amount of water withdrawn that cannot be reused*5 Volume of usable water = Volume of water resources in the basin – Volume of water
consumption from the basin• Assessed areas: 12 areas where the Group has manufacturing
bases• Assessment period: April 2023
• Assessment results

One high risk area in China (Zhucheng City). One medium-highrisk area in Thailand. All the other areas were low risk.

Water risk targets and indicators
Targets:• Reduce water withdrawal by 10% compared to 2023 levels by
2030 at our bases in China which have been assessed as highrisk in terms of water depletion by Aqueduct.
• Manage factors affecting increases and decreases in water
withdrawal and continue to assess risks.
• Enhance data collection on water discharge volume and quality
and continue to assess risks.
TOYO TIRE Integrated Report 2024

The Corporate Headquarters takes the lead in driving activities and holding discussions relating to the promotion of human rights, as well as
maintaining a robust system for preventing human rights violations in day-to-day operations. Human rights-related activities are subject to
the Sustainability Committee’s oversight through progress reporting, review and approval.

Human rights due diligence

Addressing nature-related risks and opportunities

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Top Message

Reducing water risks
The Group mainly uses municipal or other public and private
water supply facilities as well as groundwater for our boiler
equipment and parts processing facilities, the cooling ofproduction parts, cooling towers and welfare facilitates at ourmanufacturing bases. For water withdrawal and discharge, we areworking on proper water-resource management throughout theGroup using efforts such as improving equipment to reuse water
as much as possible in each production process.
As a result of our efforts over a five-year period (2019–2023)
to reduce water withdrawal at our bases in Japan by 10%
compared to 2018 levels, we reduced our water withdrawal in2023 by 19%, thereby achieving our target. Moving ahead, wewill follow the long-term roadmap and continue working on ourtargets of reducing water withdrawals at high-risk sites as well as
minimizing wastewater impacts. We will maintain appropriate
water usage at major domestic and overseas bases other thanhigh-risk bases by managing changes in water withdrawals perunit of production.

In 2023, we identified and assessed which human rights risks arerelevant throughout all of our Group business activities and the
supply chain, then went further to identify which risks are themost important for us to take action on. In order to ensure
objectivity, this process was conducted with the help of external
experts in business and human rights.

Identifying important risks
1. Identifying human rights risks
We identified relevant human rights risks by surveying each of ourdivision headquarters to understand the business characteristics
that are linked to risks, and comparing these with risks consideredinherent to our industry based on reports and recommendations ofprominent international institutions and organizations, as well as
actual cases of risk that have manifested within the industry.
2. Assessing the significance of human rights risks
The identified relevant human rights risks were scored by severity(the level of harm should an incident occur) and likelihood (the easeof manifestation within the Group). The significance of each risk wasthen assessed, with more weight given to severity in accordancewith the UN Guiding Principles on Business and Human Rights.
3. Identifying important human rights risks
The relevant human rights risks were assessed according to thetype of rights holders (those who have the human rights that areat risk of being adversely impacted), which led to identification ofimportant risks.

Prevention & mitigation measures for Identified
important risks
To prevent and mitigate these important risks, we will both
continue and strengthen our existing measures while constructing
and enhancing management schemes.

Rights holders

Important risks

Group
Lack of health & safety at
employees,
workplaces
job applicants Forced/compulsory or childlaborPower harassment or
discrimination
Discrimination against
candidates in hiring interviews
Long working hours,
excessively strenuous work
Manufacturing Lack of workplace health &contractors,
safety at manufacturing sites
distributors
Forced/compulsory or childlabor, long working hours,
excessively strenuous work at
manufacturing sites
Raw material Forced/compulsory or child
suppliers
labor at raw material
production sites

Prevention & mitigation measures
Strengthen occupational health &safety management
Discover any current forced/compulsory or child labor, build
systems to eliminate
Enhance training on preventing
harassment and discrimination
Review materials for employees incharge of interviews
Strengthen efforts to secure necessary
personnel and improve productivity
Accelerate efficient logistics initiatives(distributors)
Strengthen manufacturing contractor/distributor management scheme

Enhance sustainable procurement
Strengthen raw material suppliermanagement scheme
Enhance surveying of smelters about
Sales partners, Indirect complicity in wars ofconsumers,
aggression through sourcing of parts potentially using conflict minerals
indigenous
conflict minerals and otherand other local materials
communities Indirect complicity in conflict
Strengthen sales partner management
through sales practices
schemeAdverse impact on local
Further improve wastewatercommunities through production management, noise control
or disposal of our products
Accelerate initiatives based on quality
Infringement on consumer
management system operation
health and safety throughdefective products

Raising awareness of respect for human rights
We work continuously to raise awareness of the company’s responsibility
to respect human rights through e-learning sessions on our Corporate
Code of Conduct as well as level-specific and other training. We also
participate in human rights awareness activities at every region where ourbusiness sites are located, and strive to respect the human rights ofeveryone related to our business operations, including those at oursuppliers and within the communities where we operate.
On Human Rights Day, the President of Toyo Tire Corporation sends
a message to all Group employees, stressing the importance of having afoundation of deeply diverse talent to generate value through ourbusiness, and of demonstrating sincerity with all stakeholders.

Grievance mechanism
The Toyo Tire Group has established an internal reporting system for all compliance issues, including human rights. When consulted or a report
is received, we conduct an internal investigation as needed and take corrective action. There were no cases of human rights violations in 2023.

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