Bridgestone Corporation - Climate Change 2020
C0. Introduction

C0.1(C0.1) Give a general description and introduction to your organization.

The Bridgestone Group, headquartered in Tokyo, is the world’s largest tire and rubber company. In the tire business, we manufacture and sell various tires, including those forpassenger cars, trucks and buses, construction and mining vehicles, aircraft, industrial machinery, agricultural machinery, and motorcycles. We also provide retreadingmaterials and related technologies. In the diversified products business, we produce and sell chemical and industrial products, commercial building products and roofing
materials. We also provide bicycle, golf, tennis, and other sporting goods that are more familiar to consumers. In addition, we have recently been going beyond simply sellingtires and diversified products on a standalone basis to develop a solutions business. This business combines products, maintenance and other services, with IT and sensing
technologies to provide solutions to the customers. These products and services are sold in over 150 nations and territories around the world.
The Corporate Strategy and Planning Division is responsible for answering the 2020 CDP questionnaire. This division coordinates and manages the Group’s Environmental
Mission Statement compliance, providing environmental support to business sections, Strategic Business Units (SBU) at a global level.

C0.2(C0.2) State the start and end date of the year for which you are reporting data.

Reportingyear

Start dateEnd date

Indicate if you are providing emissions data for past reportingyears

Select the number of past reporting years you will be providing emissions data
for

January 1
2019

December 31
2019

No

<Not Applicable>

C0.3(C0.3) Select the countries/areas for which you will be supplying data.
Argentina
Australia
BelgiumBrazilCanadaChina
Costa Rica
FranceHungary
India
Indonesia
Italy
Japan
Liberia
Malaysia
MexicoPhilippines
PolandRussian Federation
South Africa
Spain
Taiwan, Greater China
ThailandTurkeyUnited Kingdom of Great Britain and Northern Ireland
United States of America
Viet Nam

C0.4(C0.4) Select the currency used for all financial information disclosed throughout your response.
JPY

CDP

C0.5
(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option shouldalign with your chosen approach for consolidating your GHG inventory.
Operational control

C1. GovernanceC1.1(C1.1) Is there board-level oversight of climate-related issues within your organization?
Yes

C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.
Position of Please explain
individual(s)Chief
Executive
Officer(CEO)

Global CEO is a member of the board, and has the highest-level responsibility for climate-related issues. Global CEO is responsible for deciding policies and measures or presenting to the board andoverseeing company-wide management activities about management vision, mid-term strategies, annual policies, etc. including climate-related issues. In 2019, the contents of the next mid-term
environmental target (Milestone 2030) , including reduction of CO2 emissions, were discussed and approved at the Global Executive Committee (Global EXCO) that consists of Global CEO andother senior executives. In response to this decision, Bridgestone will conduct initiatives to achieve two Focused Targets, “Reduce our absolute CO2 emissions (Scope 1 and 2) by 30% and aspire to
reduce by 50% by 2030 (vs 2011)” and “Contribute to global CO2 emissions reduction across the lifecycle and value chain (Scope 3) of our products and services exceeding five times our operation’s(Scope 1 and 2) CO2 emissions by 2030 (vs2020)”. In 2020, Board of Directors including Global CEO discussed and approved a new Mid-Long Term Business Strategy that places sustainability asa core of management.

C1.1b(C1.1b) Provide further details on the board’s oversight of climate-related issues.
Frequency Governance Scope of Please explain
withmechanisms boardwhich
into whichlevel
climateclimateoversight
relatedrelatedissues are issues areaintegrated
scheduled
agendaitem
Scheduled Reviewing<Not– someand guiding Applicabl
meetings
strategye>Reviewing
and guiding
major plansof action
Reviewing
and guiding
riskmanagement
policies
Reviewing
and guiding
businessplans
Setting
performance
objectives
Monitoringandoverseeing
progressagainst goals
and targets
for
addressing
climaterelated
issues

CDP

Bridgestone, in accordance with its Articles of Incorporation and applicable laws, stipulates in the Regulations of the Board of Directors that the Board of Directors is thehighest decision-making body within the company. The restructuring of the Board’s authority conducted in February 2018 enables the Board to focus more on deliberations
concerning business strategy including: 1)Fundamental management policy the foundation of which includes: -Our global CSR commitment (“Our Way to Serve”) -The
Environmental Mission Statement one of the important objectives of which is CO2 reduction 2)Mid-Long Term Business Strategy: This is the new growth strategy, where
sustainability is embedded as a core business driver. The Group will create new value for society by addressing social issues and positively contributing to the achievement of
the SDGs including Climate Change issues. By creating, balancing and expanding its social and customer value, the Group will further its competitive advantage. To theBoard, situation and progress of execution of the items above are reported quarterly. In addition, executive officer, responsible for Sustainability also report comprehensive
activities on CSR and sustainability including environment and climate change issues which have been once a year reviewed by the Global Executive Committee (Global
EXCO), Bridgestone highest-level execution committee. In 2019, (1)Progress of our CSR activities such as education and enhancement of Global CSR commitment “Our Way
to Serve” – under one of the 3 priority areas: environment including CO2 reduction (2) The draft of new Mid-term Environmental Targets “Milestone 2030”, including sciencebased CO2 reduction target, was reported.

C1.2(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.
Name of the position(s) and/or
committee(s)Reporting line Responsibility

Coverage of
responsibility

Frequency of reporting to the board on climate-related
issuesChief Executive Officer (CEO)<Not
Applicable><Not Applicable>

Quarterly

Both assessing and managing climate-related risks andopportunities

C1.2a(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climaterelated issues are monitored (do not include the names of individuals).
At Bridgestone, the CEO is the highest-level management position and has ultimate responsibility for management strategy and overall management including climate-related
issues. And the highest-level committee associated with the Bridgestone Group global business execution is the Global Executive Committee (Global EXCO). Members of the
Global EXCO are nominated from full-time corporate officers by the CEO/COO.
Reporting to the Global EXCO, Bridgestone has the Global Sustainability Committee (GSC) that is led by the Global Chief Sustainability Officer and comprised of executive
officers and professionals responsible for Sustainability and representatives of SBUs and functions.
Sustainability is led holistically and globally by the GSC (formerly the Global CSR Enhancement Committee) with working groups of cross-functional, cross-regional leaders
responsible for operationalizing the Bridgestone Group’s sustainability framework. Under the GSC, Bridgestone has 6 working groups* which are related to the areas focusedin our Global Sustainability Commitment; "Our Way to Serve". Each working group comprised of members from corresponding functions or related areas in each SBU andreport to the GSC. Among the 6-working groups, the “Environment Working Group” summarizes and reports results related to CO2 goals and management, and proposes
strategies to the GSC, taking into account the latest social trends that might represent environmental risks/opportunities. The Group also established a Global Sustainability
Function with members from each region to activate its sustainability journey to ensure the successful cultural, strategic and operational integration of “Our Way to Serve,”
Bridgestone’s Global Sustainability Commitment.
According to deliverables from the working groups including that from the Environment Working Group as written above, the GSC prioritizes Sustainability initiatives in areas
pertaining to a variety of global issues including climate change, formulates global strategies and tracks the progress of activities in each area. Then, the GSC reports to the
Global EXCO and ask them for decision making on important issues.
As for risk management/assessment, the Bridgestone Group broadly divides risks into two categories: business strategic risks, which are related to management decisionmaking, and operational risks, which include climate change risks and are related to daily operations. The former is handled through business operations, while the latter ishandled by the Chief Risk Officer (CRO), who has overall responsibility for managing risks and reports to the CEO.
*6 working groups under the GSC: "People", "Environment", "Compliance, Fair Competition", "BCP, Risk Management", "Human Rights, Labor Practices" and "Procurement"

C1.3(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?
Provide incentives for the management of climate-related issues
Row 1

Comment

Yes

C1.3a(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include the names of individuals).
Entitled
toincentive

Type of Activity
Comment
incentive inventivizedAll
Monetary Emissions
employees reward
reduction
project

At Bridgestone, business, departments and individuals who have made outstanding achievements, including various climate change mitigation actions and results, such as
achieving a CO2 reduction target, reducing energy use, and improving efficiency or reducing waste among others can be recognized by the Representative Executive Officers
in a company-wide event held on March 1, the foundation day, and also can be recognized every year by the head of the worksite in a regional event. Bridgestone’scommemorates its history and philosophy at its foundation day while reconfirming the direction the company will take in the future. This event aims to raise employees’
awareness of corporate activities. A monetary recognition as well as a regional recognition is in place. In 2019, development of a new technology “ENLITEN,” which contributes
to lightweight tires and CO2 reduction, was awarded.

All
Monetary Emissions
employees reward
reduction
project

The Bridgestone Group Awards (BGA) is the highest global recognition program for all employees that rewards efforts of organizations and individuals in five award categories:
Achievement, Mobility, People, Environment and Management Fundamentals. There are regional awards as a qualifying, and the winners will enter BGA. One of award
categories, Environment, recognizes efforts related to climate change, such as achieving a CO2 reduction target, reducing energy use, and improving efficiency or reducing
waste. This award program also functions as a system to raise employees' awareness and encourage environmental activities, including financial rewards in some regional
awards and BGA winners being honoured at Group headquarters in Tokyo. In 2019, two activities won BGA under the Environment category: Development of New Technology
for Sustainable Use of Rare Resources and a new technology for effective odour control. The former one contributes to CO2 reduction by enabling to improve tire life.

C2. Risks and opportunities
CDP

C2.1
(C2.1) Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities?
Yes

C2.1a
(C2.1a) How does your organization define short-, medium- and long-term time horizons?
From (years)

To (years)

Short-term

05Medium-term

5

10Long-term

10

40Comment

C2.1b
(C2.1b) How does your organization define substantive financial or strategic impact on your business?

From a strategic point of view, Bridgestone defines Risk as “events (incidents, accidents, natural disasters, problems, etc.) that may cause losses to the organization,
employees, products and services, financial conditions, brands, customers, shareholders, business partners, and neighbouring residents, etc.” in the Risk Management Basic
Manual, and Climate Change is also included as a factor that causes these events. When the Strategic Business Unit (SBU) extracts risks, it evaluates the events related tonatural disasters, disaster prevention, procurement, and occupational health and safety that are judged to be climate change factors as climate change risks. The degree ofrisk impact is assessed quantitatively according to the Risk Assessment Criteria from 5 viewpoints: Amount of damage, Human life, Operational impact, Environmental andSocial trust. Then, it is comprehensively classified into five levels: Extensive impact, Substantial impact, Major impact, Moderate impact and Minor impact based on the impact
level of each viewpoint. Among them, Extensive impact, Substantial impact, Major impact are defined as substantive financial impact, which are equivalent or more than morethan one week impact on operational impacts or a major damage amount (assessed and judged around the order of USD 100 million).
And also, from a financial perspective, the threshold for the judgement is whether the risk is anticipated to cause more financial loss than a standardized amount.
The process for risk identification and assessment mentioned above is also applied to the risks other than environment related ones including climate change, so various risks
which we may face can be assessed in comparable manner.

C2.2(C2.2) Describe your process(es) for identifying, assessing and responding to climate-related risks and opportunities.
Value chain stage(s) covered
Upstream
Downstream
Risk management process
Integrated into multi-disciplinary company-wide risk management process
Frequency of assessment
Annually
Time horizon(s) covered
Short-term
Medium-term
Description of process
1. Risk Assessment Structure in the Bridgestone Group The Bridgestone Group broadly divides risks into two categories: business strategic risks, which are related to
management decision-making, and operational risks, which include climate change risks and are related to daily operations. The former is handled through business
operations, while the latter is handled by the Chief Risk Officer (CRO), who has overall responsibility for managing risks and reports to Global CEO. The Group promotes
risk assessment as a part of comprehensive activities to appropriately manage risks common to the operations, with consideration for the scale and characteristics of eachsite and Group company and without limitation of time period (Six years or more). Through the dual promotion of the Group's global unified activities and autonomous risk
management activities by branches, important risks common to the Group (Corporate risk, managing process of which is reported to the CRO once every half a year) andrisks of each site and Group company (Asset risk, countermeasures and yearly self-assessment of which are considered and conducted by each facility) are identified. 2.
The process for assessing the potential size and scope of identified risks In the Bridgestone group, both corporate and facilities conduct risk identification at least once a
year, utilizing globally common direction. Then, they evaluate risks, utilizing globally unified criteria which consists of viewpoints of their impact and possibility of occurrence.
The Group standardized the degree of impacts of risks by impact-type such as human life/health, financial loss, operational impact (period of suspension of sales and plant
operation or time necessary for response), social trust and so on, regardless of the possible timing of occurrence. The criteria to determine rank differs by the impact type.
As for environment related risks including climate change and CO2 emission etc., the Group consider its possible impact is substantive when it falls under one of thefollowing criteria: “Strong feeling of discomfort extending to areas surrounding the office/plant, accompanied by health damage in some cases, or health damage caused
externally over a wide area”, “Excess limit of financial amount (determined by company)”, “Over two weeks’ impact on division (period of suspension of sales and plant
operation or time necessary for response)”, or “Trust damaged in terms of the company’s reputation (falsified reports, organizational scandal)”. In identifying risks, thosethat are currently affected or that may occur within the next five years are considered to be short-term, and those that may occur thereafter are considered to be mediumlong term. 3. How climate-related risks are identified and assessed As the result of the evaluation based on impact and possibility of occurrence, the risks “with a highpossibility of occurring and major impact” and “with a significant impact of it should occur, although its possibility is low” are considered “Significant risk” and classified into

CDP“Corporate risk”. And others are into “Asset Risk”. 4. Case Study Through the process written above, for Bridgestone, disruption of supplies of raw material due toincreased severity of extreme weather events, such as cyclones is viewed as one major risk. Especially, productivity of natural rubber which is the main raw material in tires
could decrease by droughts in South East Asia as a primary growing area of Para rubber trees. So far, its probability of occurrence is not very high in the short term, but on
the other hand, Bridgestone uses large quantities of natural rubber in tires and other rubber products. In addition, the Group sources most of its natural rubber fromSoutheast Asia and owns two rubber farms in Indonesia. Therefore, shortage and cost increase of natural rubber due to extreme weather could adversely affect theCompanies’ operating results and financial position substantially so, the Group classifies it into Corporate Risk in medium term. As part of the risk mitigation measures, theGroup is promoting to improve the rubber productivity at the suppliers' farms and own farms. Bridgestone provides Hevea rubber tree seedlings to smallholder farmers andconducts technical training in key producing countries using the same productivity-improvement techniques the Group developed for our own rubber farms at theagricultural training center in North Sumatra. Also, to the stable supply of natural rubber and the protection of rubber trees, Bridgestone established a breakthrough simple
disease diagnostic technology for easily, quickly, and accurately diagnosing white root disease affecting Hevea brasiliensis, traditionally a major source of natural rubber.
This enables the early detection of white root disease that spreads by infection caused by pathogens in the soil and is expected to prevent the spread of infection from
afflicted trees to healthy ones. Through these efforts, we are augmenting output and preparing for the risk of being unable to procure. < Transition risk> Through the process
written above 1-3, for Bridgestone, the demand shift due to growing needs for low fuel consumption performance is regarded as one of major opportunities. Bridgestone
provides products and services that can contribute to reducing CO2 emissions, such as fuel-efficient tires. So, changes on climate-related requirements and regulations in
the market may impact our sales. For example, against the growing expectations for fuel-efficient tires, if we provide tires with timely development or satisfactory
performance, we may rise competitiveness and grow in market share. Expectations for fuel-efficient tires are already rising, and its impact will be expected to be significant
for Bridgestone, whose tire sales accounts for more than 80% of total sales. Therefore, the Group classifies response failure to market demand shifts as Corporate Risk inthe short term, and at the same time, we also see it as an opportunity to increase competitiveness by responding. The Group’s fuel-efficient tires, represented by ECOPIA,
contribute to greater vehicle fuel efficiency and meet a variety of customer needs, including superior levels of low-rolling resistance, lighter weights and other performance
metrics. The Group achieved a 23% reduction (from a 2005 baseline) in tire rolling resistance, equal to a contribution of approximately 13.4 million tonnes CO2 reduction, in
2019.
Value chain stage(s) covered
Direct operations
Risk management process
Integrated into multi-disciplinary company-wide risk management process
Frequency of assessment
Annually
Time horizon(s) covered
Long-term
Description of process
1. Risk Assessment Structure in the Bridgestone Group The Bridgestone Group broadly divides risks into two categories: business strategic risks, which are related to
management decision-making, and operational risks, which include climate change risks and are related to daily operations. The former is handled through business
operations, while the latter is handled by the Chief Risk Officer (CRO), who has overall responsibility for managing risks and reports to Global CEO. The Group promotes
risk assessment as a part of comprehensive activities to appropriately manage risks common to the operations, with consideration for the scale and characteristics of eachsite and Group company and without limitation of time period (Six years or more). Through the dual promotion of the Group's global unified activities and autonomous risk
management activities by branches, important risks common to the Group (Corporate risk, managing process of which is reported to the CRO once every half a year) andrisks of each site and Group company (Asset risk, countermeasures and yearly self assessment of which are considered and conducted by each facility) are identified. 2.
The process for assessing the potential size and scope of identified risks In the Bridgestone group, both corporate and facilities conduct risk identification at least once a
year, utilizing globally common direction. Then, they evaluate risks, utilizing globally unified criteria which consists of viewpoints of their impact and possibility of occurrence.
The Group standardized the degree of impacts of risks by impact-type such as human life/health, financial loss, operational impact (period of suspension of sales and plant
operation or time necessary for response), social trust and so on, regardless the possible timing of occurrence. The criteria to determine rank differ by the impact-type. But
as for environment related risks including climate change and CO2 emission etc., the Group consider its possible impact is substantive when it falls under one of thefollowing criteria: “Strong feeling of discomfort extending to areas surrounding the office/plant, accompanied by health damage in some cases, or health damage caused
externally over a wide area”, “Excess limit of financial amount (determined by company)”, “Over two weeks’ impact on division (period of suspension of sales and plant
operation or time necessary for response)”, or “Trust damaged in terms of the company’s constitution (falsified reports, organizational scandal)”. On the other hand, we also
estimate possibility of occurrence and classify them into 4 ranks based on the likelihood. 3. How climate-related risks are identified and assessed at a company/asset level
As the result of the evaluation based on impact and possibility of occurrence, the risks “with a high possibility of occurring and major impact” and “with a significant impact of
it should occur, although its possibility is low” are considered “Significant risk” and classified into “Corporate risk”. And others are into “Asset Risk”. 4. Case Study <Transition risk> Through the process written above, for Bridgestone, increasing production cost due to tightening of regulations on CO2 emissions and increased
introduction of carbon tax, is considered one major risks. Considering the fact that carbon tax has been introduced in many countries with Bridgestone bases such as EU
countries, South Africa and Canada in recent years, its probability of occurrence is very high. On the other hand, since the introduction of carbon tax varies from country tocountry, its impact is considered to be gradual in the long term. For Bridgestone, which has facilities in over 20 countries, increases in production costs due to laws andregulations or carbon taxes may result in restrictions on the use of existing equipment and production suspension, which could adversely affect the Companies’ operating
results and financial position. As the risk mitigation strategy the Group is promoting activities to minimize CO2 emissions, such as maximizing energy efficiency, increasinguse of renewable energy, and promoting manufacturing and engineering innovation, etc. As a concrete example of maximizing energy efficiency, Bridgestone has
conducted Group-wide energy surveys to identify energy loss since 2009. We are continuously developing the ability of our personnel to recognize and implement energysaving opportunities, and our proficient staff is able to earn distinctions by becoming energy diagnosis technicians. Energy diagnosis technicians have already been
assigned to every tire plant in Japan, and we will continue to increase technician numbers throughout Asia, the Americas and Europe. In addition, the internal guidelines
stipulate that a comprehensive evaluation for the realization of a sustainable society including CO2 reduction should be made when making investment decisions. Whenintroducing large-scale equipment, we will also consider CO2 emission costs.

C2.2a

CDP

(C2.2a) Which risk types are considered in your organization's climate-related risk assessments?
Relevance Please explain&
inclusion
Current
regulation

Relevant,
alwaysincluded

Recently, various regulations have been introduced for the purpose of curbing climate change. With respect to tires also, maximum limits on rolling resistance and the labelling system havebeen introduced. Following such new regulations, operational cost such as to develop low rolling resistance tires, to measure rolling resistance coefficient value and to print labels has
been increased. There is a possibility of further increase of operational cost in case such regulations become stricter and/or expand globally. For example, Europe (EU member states),South Korea, Brazil and the Middle East (GCC, Israel) have already introduced the maximum limit and labelling systems for rolling resistance. Studies of introducing regulations areunderway in the United States, India and China, and there is a possibility of further expansion in the future. Bridgestone’s tire sales accounts for more than 80% of total sales, and since wesell a wide range of tires in over 150 countries, such as for passenger cars, truck and bus, and light truck, in each country that has introduced or is considering the labelling system andpromoting development of low rolling resistance tires as represented by ECOPIA which superior level of fuel efficiency and other performance. Therefore, its impact is significant. The
global Environment Working Group is monitoring social trends including current regulations and Bridgestone encourages the development and launch of low rolling resistance tires tocontribute to CO2 emissions reduction activities.

Emerging
regulation

Relevant,
alwaysincluded

There are discussions about introducing carbon pricing in many countries, and since Bridgestone has facilities in over 20 countries, there is a possibility of increasing operational cost. For
example, the current carbon tax rate in Japan is 289 yen/tCO2e, if the carbon tax rises by 1 yen, the impact will be 866,000 yen. If the carbon tax increases gradually in the future, it isconsidered that the impact will be large. The global Environment Working Group is monitoring social trends including emerging regulations such as carbon tax, etc. and Bridgestone
continues to encourage activities to reduce CO2 emissions.

Technology Relevant,alwaysincluded

There is a possibility of sales decrease in the case of becoming less competitive because of delay of low carbon technology development enhancing energy efficiency of
products/manufacturing. We estimate that the potential financial impact is 29.53 billion yen per 1% decreasing of annual sales. It will be a significant impact for Bridgestone, whose tire
sales account for more than 80% of total sales. By introducing such energy- efficient technologies, Bridgestone encourages providing products and services that can contribute to reduce
CO2 emissions, such as fuel-efficient tires.

Legal

Relevant,
alwaysincluded

Bridgestone is subject to relevant laws and regulations in each country in which it conducts business. In case of providing accurate information with climate change-related data in
administrative reports and product labelling, there is a risk of investigation by authorities and litigation. For example, there may be cases in which an incorrect explanation of energy
efficiency is displayed in the tire labelling, or CO2 emissions from production sites are reported incorrectly. Incorrect tire fuel consumption information will also affect the fuel consumption
information of the vehicle, which will prevent measures against climate change by vehicles with a large impact on CO2 emissions. As it affects not only the company's laws and regulations,but also car manufacturers and their purchasers, it is considered to be a major risk. In the future, mistaking compliance with new laws and regulations may have negative impacts such as
business activity restrictions and increased costs for litigation.

MarketRelevant,
alwaysincluded

Bridgestone encourages providing products and services which can contribute to reducing CO2 emissions, such as fuel-efficient tires. However, changes on climate-related requirementsin the market may impact our sales. For instance, expectations for fuel efficient tires and retread tires are increasing. However, there is a possibility of losing competitiveness and drop in
market share in case of delaying the development and providing tires which can not improve customer satisfactions related to CO2 reductions. We estimate that the potential financial
impact is 29.53 billion yen per 1% decreasing of annual sales. It will be a significant impact for Bridgestone, whose tire sales accounts for more than 80% of total sales. In addition, in casethat global temperature becomes significantly higher and snowfall becomes lower, demand for winter tires might be lower. The global Environment Working Group is monitoring social
trends including market requirements from customers such as automakers.

Reputation Relevant,alwaysincludedWith the increasing demand for climate change response in the automotive industry, disclosure of environmental data is also becoming more important. Bridgestone encourages ESG
disclosure, and disclose environmental data including energy and CO2 emission data in various media such as the Annual Report, Sustainability Report and website. But in the event of acrisis that damages social credibility by providing inaccurate information related to climate change, there are possibilities to lose trust from customers and stock price. It may cause adecline and adversely affect business performance and financial condition. It could negatively impact Bridgestone's business performance and financial position, and at the same time
impair investors' chances of making appropriate decisions on climate change initiatives. To enhance the transparency and reliability of disclosure, Bridgestone conducts third-party
verification and reviews of most of the data contained in sustainability reports such as CO2 emissions. The global Environment Working Group also monitors ratings of Bridgestone byexternals. The global Environment Working Group also monitors social trends including reputations of advanced companies on ESG as benchmark and criticisms for companies with ESG
related misdoings to avoid potential negative reputational impacts.

AcutephysicalRelevant,
alwaysincluded

Bridgestone’s main business is tires whose raw materials consist of natural rubber. Currently, natural rubber is almost entirely made from the sap (latex) of para rubber tree. 90% of thegrowing area of para rubber tree is in Southeast Asia and owing to droughts in the tropical rainforests of Southeast Asia caused by El Nino, the deciduous period for para rubber tree
becomes longer and the period during which sap can be obtained becomes shorter, thereby leading to a decrease in yield. As a result, the balance of supply and demand is expected to be
upset and the price of natural rubber, which plays a vital role as a raw material of tires, is expected to surge. If the price of natural rubber rises and it becomes difficult to procure suchrubber, the cost of tire production will increase. This in turn is expected to result in lower profit or a decrease in share due to higher tire prices. In addition, severe weather such as floods
and hurricanes could affect operations at manufacturing facilities and/or distribution channels. The global Environment Working Group is monitoring social trends including yearly climatechange status in all regions.

Chronic
physicalRelevant,
alwaysincluded

Bridgestone’s main business is tires whose raw materials consist of natural rubber. Currently, natural rubber is almost entirely made from the sap (latex) of para rubber tree. 90% of thegrowing area of para rubber tree is in Southeast Asia. There is a risk of rubber supply shortage as climate pattern changes in regions where para rubber tree grows and rubber production
efficiency worsen. It can lead to lower profit because of a higher rubber procurement cost. For example, in 2017, rubber prices rose about 15% when rubber yields temporarily declined
10% in Thailand. If the yield of rubber decreases chronically due to climate change and the price of rubber continues to rise, the cost of manufacturing tires will increase. This in turn is
expected to result in lower profit or a decrease in share due to higher tire prices. The global Environment Working Group is monitoring social trends including publications about long-term
estimations related to climate-change.

C2.3(C2.3) Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business?
Yes

C2.3a
(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on your business.
Identifier
Risk 1
Where in the value chain does the risk driver occur?
Direct operations
Risk type & Primary climate-related risk driver
Emerging regulation

Carbon pricing mechanisms

Primary potential financial impact
Increased indirect (operating) costs
Climate risk type mapped to traditional financial services industry risk classification<Not Applicable>
Company-specific description

CDP

Introducing carbon pricing in various countries would cause increase of operational cost since Bridgestone has facilities in over 20 countries. For example, in October 2012,
the Tax for Climate Change Mitigation was introduced in Japan. In response to such introduction, the Bridgestone Group is paying more taxes directly according to the useof fuel and indirectly according to the use of electricity. Specifically, by using a CO2 emissions factor of each fossil fuel, the tax rate per unit quantity (kilo litter or tonne) is
set so that each tax burden is equal to 289 yen per tonne of CO2 emissions. For Bridgestone, it is an important climate risk to consider because approx. 30% (48 facilities)of our manufacturing facilities are located in Japan and CO2 emission of these facilities accounts for approx. 22% of our Scope1 & Scope 2.
Time horizon
Medium-term
Likelihood
LikelyMagnitude of impact
High
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
860000Potential financial impact figure – minimum (currency)<Not Applicable>
Potential financial impact figure – maximum (currency)<Not Applicable>
Explanation of financial impact figure
Financial impact is estimated to 289 yen/tCO2 based on current carbon tax rate. Although it depends on the degree of increase the tax rate, the figure shown in the“Potential financial impact 860,000 yen”is a calculation of 1 yen increase case. In the breakdown of CO2 emissions (Scope1, 2) in 2019, Japan's emissions were 866,344
tonnes. (866000 tCO2 * 1 yen/tCO2 = 866000 yen)
Cost of response to risk
5053000000
Description of response and explanation of cost calculation
To mitigate this risk, Bridgestone has two approaches to reduce the impact of future carbon taxes by reducing CO2 emissions. One is to include the evaluation from theviewpoint of CO2 emission cost in the equipment introduction study. The internal guidelines stipulate that a comprehensive evaluation including the realization of asustainable society such as CO2 reduction should be made when making investment decisions. Carbon price of CO2 emission cost is set accordingly considering businesscharacteristics and regional situations of each business unit, however the common default value for reference is updated once a year. Based on this information, eachbusiness unit will install equipment while considering reducing the future impact of carbon prices. The other is to improve energy efficiency with existing equipment. To
maximize energy efficiency, we are promoting conversion to energy that produces little CO2 emissions and also reducing energy use itself. Energy saving initiatives at
production sites are one of our primary activities. We have been implementing CO2 reduction measures such as the introduction of high efficiency equipment, installingsteam turbine generators, converting to fuel emitting less CO2 and so on. Investments mainly for enhancing energy saving through improvements of equipment, including
upgrading equipment to high efficiency equipment and converting them to inverter, at Bridgestone plants amounted to 5,053 million yen in 2019. In the calculation, the ones
that contribute to energy saving (efficiency improvement of buildings such as heat insulation, repair, air conditioning, lighting / efficiency improvement of processes such asheat recovery, fuel conversion, equipment replacements) were extracted from the list of capital investment in 2019 at the production facilities, and the investment amount
was totalled.
Comment
As example of other activities, we are promoting energy saving initiatives at offices. We have reduced the number of units of equipment by promoting scrapping andintegration through the visualization of the layout and utilization rate of office equipment such as printers and multifunction office equipment. We also have long succeededin reducing power consumption by resetting illuminance by thorough measurement of lighting illuminance of business offices. We have introduced an “electric power
visualization” system at the business office of our Technical Center which is used to visualize the status of power consumption and verify the effects of reduction measuresand to set reduction targets.
Identifier
Risk 2
Where in the value chain does the risk driver occur?
Upstream
Risk type & Primary climate-related risk driver
Chronic physical

Changes in precipitation patterns and extreme variability in weather patterns

Primary potential financial impact
Increased direct costs
Climate risk type mapped to traditional financial services industry risk classification<Not Applicable>
Company-specific description
Bridgestone’s main business is tires whose raw materials consist of natural rubber. Currently, natural rubber is almost entirely made from the sap (latex) of Para rubbertree. 90% of the growing area of Para rubber tree is in Southeast Asia and due to droughts in the tropical rainforests of Southeast Asia caused by El Nino, the deciduous
period for para rubber tree becomes longer and the period during which sap can be obtained becomes shorter, thereby leading to a decrease in yield. As a result, thebalance of supply and demand is expected to be upset and the price of natural rubber, which plays a vital role as a raw material of tires, is expected to surge. If the price of
natural rubber rises and it becomes difficult to procure such rubber, the cost of tire production will increase. This in turn is expected to result in lower profit or a decrease inshare due to higher tire prices. Bridgestone sources most of its natural rubber from Southeast Asia and owns two rubber farms in Indonesia. Therefore, we are aware that
this risk has a significant impact.
Time horizon
Medium-term
Likelihood
LikelyCDPMagnitude of impact
Medium-high
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
5043000000
Potential financial impact figure – minimum (currency)<Not Applicable>
Potential financial impact figure – maximum (currency)<Not Applicable>
Explanation of financial impact figure
Financial impact is estimated to 1 yen/kg based on our total amount of raw materials used for production. Although it depends on the degree of increase the raw material
prices, the figure shown in the “Potential financial impact 5,043,000,000 yen”is a calculation when the price of all raw materials increases by 1 yen/kg Our total amount of
raw materials used for production, including natural and synthetic rubber, is 5,043 thousand tonnes in 2019. (5,043,000 tonnes * 1 yen/kg = 5,043,000,000 yen)
Cost of response to risk
105200000000
Description of response and explanation of cost calculation
Bridgestone is reducing the above risks through two approaches: improving the rubber productivity and diversifying natural rubber supply sources. To improve productivity,
Bridgestone provides rubber tree seedlings to smallholder farmers and conducts technical training with the same productivity-improvement techniques the Group developedfor its own rubber farms. Also, for the protection of rubber trees, Bridgestone has been taking measures against the disease of rubber trees. In Southeast Asia, white rootrot disease is one of the major factors affecting the productivity of natural rubber. This disease has a problem that detection accuracy is low and damage is likely to spread.
To respond to this issue, Bridgestone promoted development of technologies that diagnosis the disease. As a result, Bridgestone established a breakthrough simple
disease diagnostic technology for easily, quickly, and accurately diagnosing the disease. This enables the early detection of the disease and is expected to prevent the
spread of infection from afflicted trees to healthy ones. Through these efforts, we are augmenting output and preparing for the risk of being unable to procure. For
diversifying natural rubber supply sources, we are researching alternative plants other than Hevea brasiliensis. Bridgestone is promoting various research projects utilizing
partnerships aimed at practical applications for guayule, a shrub that can be cultivated on land native to the arid region spanning the south-western United States tonorthern Mexico. Bridgestone began collaborating with Versalis S.p.A. of Italy to make full use of the latest genetic technologies to develop highly productive varieties ofguayule. We are also engaged in improving guayule varieties by utilizing technologies by NRgene Ltd., a genome big data solutions company, since February 2018.
Aiming for commercial applications by the 2020s, we will continue to improve guayule productivity through sustainable methods, establish new production processes,
improve logistics, and promote other initiatives. The entire research and development expenses of the Global Group, including above measures like establishing diseasediagnostic technology and conducting research on genome decoding aimed at breed improvement totalled 105.2 billion yen per year in 2019. We see this as a risk
management cost and this data can be referenced in Financial Data on Global website as R&D Expenses.
Comment
Identifier
Risk 3
Where in the value chain does the risk driver occur?
Downstream
Risk type & Primary climate-related risk driverTechnology

Unsuccessful investment in new technologies

Primary potential financial impact
Increased indirect (operating) costs
Climate risk type mapped to traditional financial services industry risk classification<Not Applicable>
Company-specific description
Recently, various regulations have been introduced to curb climate change. With respect to tires also, maximum limits on rolling resistance and the labelling system havebeen introduced. Although tires do not emit GHG when they are used, passenger cars and trucks emit a large volume of GHG. Improving fuel consumption, would be acountermeasure against such emissions. Although the fuel consumption of passenger cars and trucks is determined by engine performance and various resistance factors.
Among such factors, the impact of resistance by tire is said to be about 10-20% for passenger cars and about 20-30% for trucks, though this depends on driving conditions.
Resistance by tire mentioned here is referred to as “rolling resistance” which resistance is arising when a tire rolls. In other words, the same vehicle will have better fuelconsumption if the tire rolling resistance is low. As such, each country is adopting the following systems as a measure to lower rolling resistance.1. Set a maximum value forrolling resistance and prohibit sale if this maximum value is exceeded. (Maximum limit) 2. Grade rolling resistance according to 5-7 levels and carry out labelling. For
example, Europe (EU member states), South Korea, Brazil and the Middle East (GCC, Israel) have already introduced the maximum limit and labelling systems, and Japan
has introduced the labelling system as a voluntary industry standard. For example, Europe (EU member states), South Korea, Brazil and the Middle East (GCC, Israel)
have already introduced the maximum limit and labelling systems for rolling resistance. Further studies are underway in the United States, India and Thailand, and there is apossibility of further expansion in the future. In addition, Japan has introduced the labelling system as a voluntary industry standard and China is also considering
introducing it. Bridgestone’s tire sales accounts for more than 80% of total sales, and since we sell a wide range of tires, such as for passenger cars, truck and bus, andlight truck, in each country that has introduced or is considering the labelling system, therefore its impact is significant. Then, Bridgestone considers that these systems
could be are a risk to decrease sales units if investment in new technology for better rolling resistance in align with other performances including price is unsuccessful.
Therefore, we are developing products with better rolling resistance to prevent reduction of sales volume.
Time horizon
Short-term
Likelihood
Very likely
Magnitude of impact
High
Are you able to provide a potential financial impact figure?

CDPYes, a single figure estimate
Potential financial impact figure (currency)
29530000000
Potential financial impact figure – minimum (currency)<Not Applicable>
Potential financial impact figure – maximum (currency)<Not Applicable>
Explanation of financial impact figure
The global tire market is valued at approximately 169 billion US dollars in 2018 (Reference: Tire Business – Global Tire Company Rankings) and is expected to grow two to
three-fold by 2050. Financial impact is estimated to 1% based on our tire sales. Although it depends on the degree of decrease actually sales, the figure shown in the“Potential financial impact 29,530,000,000 yen”is a calculation when the tire sales decreases 1%. Our tire sales in 2019 was about 2,953 billion yen. (2,953,000,000,000
yen * 0.01 = 29,530,000,000 yen)
Cost of response to risk
87800000000
Description of response and explanation of cost calculation
The most important factor to prevent this risk is the development of technology for reducing tire-rolling resistance. To this end, we are developing technology for tires inoverall focusing on the molecular structure of raw materials, weight reduction, internal structure of tires, and tire groove configuration, among other things. As example of
the achievements in 2019, Bridgestone launched “Enliten,” an innovative lightweight tire technology that balances increasing considerations for the environment withperformance demands. This combination contributes to the reduction of vehicle’s CO2 emissions, which providing the same wear life as a standard original equipment tire.
Benefiting car manufacturers, drivers and environment, tires with embedded Enliten technology also improve the vehicle handing and stability to increase driving pleasure.
Additionally, Bridgestone has developed “SUSYM,” an innovative, next-generation polymer that bonds rubber and resins at the molecular level with its own catalysedtechnologies. SUSYM allows for the flexibility of rubber and the durability of resins to be expressed as needed. SUSYM also leads to new possibilities for tires such as
being lightweight, durable, and energy efficient, which exceeds conventional expectations of tires. The Group expects that SUSYM will contribute to various fields in waysthat exceed the scope of use as a tire material. In an effort to improve productivity at its factories in order to provide its customers with tires in a faster, better, and moreefficient manner, the Group is also using its own Information and Communications Technology (ICT) to develop analytics, prediction, high-precision processing, and sensing
technologies. We invest in development aiming to reduce rolling resistance every year. The figure of “Cost of response to risk” is based on actual expense of tire’s researchand development including technology development for reducing tire-rolling resistance in 2019 (= 87.8 billion yen ).
Comment
Identifier
Risk 4
Where in the value chain does the risk driver occur?
Downstream
Risk type & Primary climate-related risk driver
Reputation

Increased stakeholder concern or negative stakeholder feedback

Primary potential financial impact
Increased capital expenditures
Climate risk type mapped to traditional financial services industry risk classification<Not Applicable>
Company-specific description
Disclosure of GHG related information is increasingly being required around the world. Meanwhile, foreign investors own about 27% of Bridgestone stocks. If Bridgestone
stocks are deemed to be outside the scope of ESG investment by financial institutions due to our failure to disclose information or negative campaigns are conducted byNGOs, there is a risk that this would lead to a decline in the stock price. We think the reputation risk would be comparatively higher for Bridgestone because of its leader
position in the industry and should be managed properly by the measures as written below.
Time horizon
Short-term
Likelihood
About as likely as not
Magnitude of impact
Medium-low
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
760000000
Potential financial impact figure – minimum (currency)<Not Applicable>
Potential financial impact figure – maximum (currency)<Not Applicable>
Explanation of financial impact figure
Financial impact is estimated to 1 yen/share based on our stock price. Although it depends on the degree of decrease actually stock price, the figure shown in the “Potential
financial impact 760,000,000 yen”is a calculation of 1 yen decline case. Number of shares issued was about 761,536,000 share in 2019. (760,000,000 share * 1 yen =760,000,000 yen) It brings more difficult access to capital.
Cost of response to risk
30600000

CDPDescription of response and explanation of cost calculation
In order to prevent decreasing in brand value, we believe that it is important to accurately disclose information on supply chain GHG. When disclosing GHG information, we
deem the following 3 points crucial. 1) Guarantee of reliability of information We obtained a third-party verification of our 2019 calculation results through an externalorganization and disclosed it. We utilize external evaluation schemes to secure objectivity from stakeholders’ viewpoint. As the result of such effort by 2019, we wereranked or selected to A- on CDP Climate Change, DJSI Asia Pacific, FTSE4Good Index Series, and STOXX GLOBAL ESG LEADERS INDEX etc. as of Feb.2020. 2)
Secure method of information disclosure We thinks we can meet stakeholder’s expectations by disclosing information in accordance with CDP requirements. The
disclosure connected with the objective under long-term environmental vision has made our initiatives easily understandable. 3) Secure means of access to information We
use our website and Global Sustainability Report to make it possible for all stakeholders to access information of our various activities. The effort to communicate withstakeholders through the Global Sustainability Report was awarded “Environmental Communication Awards 2019 Excellent prize” by the Ministry of the Environment ofJapan in Feb, 2019. We spent approx. 30.6 million yen in 2019 in total for implementing measures above such as obtaining third-party verification of our 2019 GHG
calculation results and issuing a Sustainable Report.
Comment

C2.4(C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business?
Yes

C2.4a
(C2.4a) Provide details of opportunities identified with the potential to have a substantive financial or strategic impact on your business.
Identifier
Opp1
Where in the value chain does the opportunity occur?
Downstream
Opportunity type
Products and services
Primary climate-related opportunity driver
Development and/or expansion of low emission goods and services
Primary potential financial impact
Increased revenues resulting from increased demand for products and services
Company-specific description
Recently, various regulations have been introduced with the purpose of curbing climate change. With respect to tires also, maximum limits on rolling resistance and thelabelling system have been introduced. “Rolling resistance” is resistance arising when a tire rolls, and the same vehicle will have better fuel consumption if the tire rolling
resistance is low. Therefore, each country is adopting the following systems as a measure to lower rolling resistance. 1. Set a maximum value for rolling resistance andprohibit sale if this maximum value is exceeded. (Maximum limit) 2. Grade rolling resistance according to 5-7 levels and carry out labelling. For example, several regions
and countries such as Europe (EU member states), South Korea, Brazil and the Middle East (GCC, Israel) have already introduced the maximum limit and labellingsystems, and Japan has introduced only the labelling system as a voluntary industry standard. Bridgestone’s tire sales accounts for more than 80% of total sales, and since
we sell a wide range of tires in over 150 countries, such as for passenger cars, truck and bus, and light truck, in each country that has introduced or is considering thelabelling system and promoting development of low rolling resistance tires as represented by ECOPIA which superior level of fuel efficiency and other performance.
Therefore, its impact is significant. Therefore, Bridgestone considers the introduction of these systems could be comparatively large opportunity to fairly disclose and appeal
to consumers the maximum limit and grading of rolling resistance of our products due to its wide range of region of operation. Bridgestone’s fuel-efficient tires, represented
by ECOPIA, contribute to greater vehicle fuel efficiency and meet a variety of customer needs, including superior levels of low-rolling resistance, lighter weights and otherperformance metrics. The Group achieved a 23% reduction (from a 2005 baseline) in tire rolling resistance, equal to a contribution of approximately 13.4 million tonnes CO2
reduction, in 2019. Bridgestone believes that it can respond to the labelling system through the development of such fuel-efficient tires and appeal to the demand for fuelefficient tires.
Time horizon
Short-term
Likelihood
Very likely
Magnitude of impact
High
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
29530000000
Potential financial impact figure – minimum (currency)<Not Applicable>
Potential financial impact figure – maximum (currency)<Not Applicable>
Explanation of financial impact figure
The global tire market is valued at approximately 169 billion US dollars in 2018 (Reference: Tire Business – Global Tire Company Rankings) and is expected to grow two to
three-fold by 2050. Financial impact is estimated to 1% based on our tire sales. Although it depends on the degree of increase actually sales, the figure shown in the“Potential financial impact 29,530,000,000 yen”is a calculation when the sales of tire business increases 1%. Our sales of tire business in 2019 was about 2,953 billion yen.
(2,953,000,000,000 yen * 0.01 = 29,530,000,000 yen)

CDP

Cost to realize opportunity
87800000000
Strategy to realize opportunity and explanation of cost calculation
The most important factor in taking advantage of such systems is the development of technology to reduce tire-rolling resistance. To this end, we are developing technology
for tires, focusing on the overall molecular structure of raw materials, weight reduction, internal structure of tires, and tire groove configuration, among other things. At thesame time, we are implementing the sales strategy of focusing on expanding sales of “ECOPIA” tires with substantially lower rolling resistance as a global brand. We havesuccessfully been increasing sales of “ECOPIA” brand products and will foster this brand continuously. Also, we successfully developed the “Large and Narrow concept tire”
employing “ologic” technology as a new tire environmental technology. Tires with this new technology are able to realize levels of fuel efficiency that greatly exceed those of
the fuel-efficient tires we have already put on the market, and as a result, this is expected to reduce CO2. In addition, we are promoting development of tires with betterrolling resistance by setting a mid-term target for us to reduce 25% of rolling resistance vs 2005 until 2020. As of 2019, we achieved 23% reduction vs 2005 (improved
approx.2% from 2018) which is equivalent to 13.6 million t-CO2 of our Scope3 reduction from 2005. We invested in development aiming to reduce rolling resistance every
year. Tire’s research and development expenses, including such investments, totalled 87.8 billion yen in 2019. This data is can be referenced in Securities report.
Comment
Identifier
Opp2
Where in the value chain does the opportunity occur?
Upstream
Opportunity type
Resilience
Primary climate-related opportunity driver
Resource substitutes/diversification
Primary potential financial impact
Reduced direct costs
Company-specific description
Currently, natural rubber, the main raw material of tires, is almost entirely produced from the sap of para rubber trees. 90% of growing areas of para rubber trees are in
Southeast Asia and its price often fluctuates due to issues such as demand change, climate change and speculation etc. Therefore, finding a substitute for the raw material
source will be one key factor to enhance competitiveness and resilience of Bridgestone’s business. The Bridgestone Group proactively conducts research and production ofnatural rubber resources consisting of Guayule cultivated in arid climates and Russian Dandelion cultivated in temperate climates as substitutes for para rubber trees.
Additionally, we have successfully developed a new polymer to bond rubber and resins at the molecular level. This new polymer, called High Strength Rubber (HSR),
boasts unprecedented durability with higher crack resistance, higher abrasion resistance and tensile strength than natural rubber, which itself has higher destruction
resistance than common synthetic rubber. We expect this new material would be alternative material of natural rubber and/or contribute to reducing its usage amount.
Through these activities, we can use this opportunity to differentiate ourselves in terms of diversity of raw material source and cost competitiveness and supply of tires.
Time horizon
Medium-term
Likelihood
LikelyMagnitude of impact
Medium-high
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
199000000000
Potential financial impact figure – minimum (currency)<Not Applicable>
Potential financial impact figure – maximum (currency)<Not Applicable>
Explanation of financial impact figure
Financial impact is estimated to tire sales per market share. Although it depends on the degree of expansion of market share, the figure shown in the “Potential financial
impact 199,000,000,000 yen”is calculated as below. Our tire sales in 2019 was about 2,953 billion yen and the latest our tire share is 14.8%. (2,953 billion / 14.8 = 199
billion)Cost to realize opportunity
105200000000
Strategy to realize opportunity and explanation of cost calculation
As a means of gaining opportunities, we have been promoting research and development on alternative resources in other climatic zones aimed at easing theoverconcentration of natural rubber producing areas in Southeast Asia. 1. Guayule: The Bridgestone Group conducts research and development of guayule as a new
natural rubber source replacing para rubber tree to stabilize supply. As guayule grows in arid regions, unlike Para rubber tree, and the rubber component contained in its
tissue has similar properties to the natural rubber harvested from the para rubber tree, it is expected to be a new natural rubber source. We commenced experimental
production of natural rubber harvested from guayule in 2015. In 2017, Bridgestone Americas (BSAM) collaborated with Versalis S.p.A. of Italy, making full use of the latest
genetic technologies to develop highly productive varieties of guayule. BSAM is also engaged in improving guayule varieties by utilizing technologies by NRgene Ltd., agenome big data solutions company, since February 2018. Aiming for commercial applications by the 2020s, we will continue to improve guayule productivity throughsustainable methods, establish new production processes, improve logistics, and promote other initiatives. 2. SUSYM: An innovative, next-generation polymer that bonds
rubber and resins at the molecular level with its own catalysed technologies, was developed in 2019. SUSYM allows for the flexibility of rubber and the durability of resins to
be expressed as needed. SUSYM also leads to new possibilities for tires such as being lightweight, durable, and energy efficient, which exceeds conventional expectationsof tires. The Group expects that SUSYM will contribute to various fields in ways that exceed the scope of use as a tire material. In an effort to improve productivity at its
factories in order to provide its customers with tires in a faster, better, and more-efficient manner, the Group is also using its own Information and Communications
Technology (ICT) to develop analytics, prediction, high-precision processing, and sensing technologies. The entire research and development expenses on Group/Global
basis, including development of alternative resources above, totalled 105.2 billion yen per year in 2019. This data is can be referenced in Securities report.
Comment

CDP

Identifier
Opp3
Where in the value chain does the opportunity occur?
Downstream
Opportunity type
Products and services
Primary climate-related opportunity driver
Shift in consumer preferences
Primary potential financial impact
Increased revenues resulting from increased demand for products and services
Company-specific description
Bridgestone delivers a wide range of products to customers around the world, including tires, rubber and other diversified products. We have been providing best-in-classservices, sensor devices, data-driven technology and tire asset management systems as “Solution Business” that enable increased productivity for our customers. Amongthe customers, Commercial Fleet operators are under constant pressure to maximize their fleet performance whilst minimizing costs. Bridgestone’s integrated solution
offering, combining premium products, extensive services and state of the art digital platforms provide fleet customers with safer, more sustainable and economical mobility.
From climate-related viewpoint, improvement of fuel efficiency brought by our solution have been contributing to CO2 reduction. In case that stricter emission control and/or
carbon pricing etc. are introduced with the rise of social momentum in future, CO2 emission reduction would become more important theme for such operators. We
consider it could be our business opportunity. Bridgestone has focused on this solution business in recent years by measures represented by the acquisition of Bandag in
2007, introducing “ECO Value Pack” service which bundles new tires, retread tires and tire maintenance service into a single package for transport operators and othercustomers. Moreover, Webfleet solutions joined our business from 2019, which provide all the information fleet managers need to protect drivers, manage their inventories,
optimize operations and total cost of ownership per vehicle, and reduce environmental impact in 2019. Real-time vehicle tracking improves operations of the entire fleet anddriver behaviour. Monitoring and analysing driver behaviour and optimizing routes reduces fuel costs and greenhouse gas emissions. Automated processes also supportcompliance with regulatory guidelines. Therefore, Bridgestone would be able to grasp the expansion of solution business related opportunity comparatively easily.
Time horizon
Short-term
Likelihood
Very likely
Magnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
29530000000
Potential financial impact figure – minimum (currency)<Not Applicable>
Potential financial impact figure – maximum (currency)<Not Applicable>
Explanation of financial impact figure
The global tire market is valued at approximately 169 billion US dollars in 2018 (Reference: Tire Business – Global Tire Company Rankings) and is expected to grow two to
three-fold by 2050. Financial impact is estimated to 1% based on our tire sales. Although it depends on the degree of increase actually sales, the figure shown in the“Potential financial impact 29,530,000,000 yen”is a calculation when the tire sales increases 1% Our tire sales in 2019 was about 2,953 billion yen. (2,953,000,000,000 yen* 0.01 = 29,530,000,000 yen)
Cost to realize opportunity
87800000000
Strategy to realize opportunity and explanation of cost calculation
With recent developments like MaaS (Mobility as a Solution) and CASE (Connected, Autonomous, Shared, Electric), the mobility industry is facing a once-in-a-century paceof change. As mobility continues to rapidly evolve, it has the strong potential to solve many of the challenges affecting society. The Bridgestone Group’s mobility solutions
business creates new value by combining its wealth of knowledge about tires with tire and mobility data to contribute to world mobility. For customers, the Group’s solutions
that maximize tire performance help optimize operations and introduce damage prevention measures that avoid downtime, improve vehicle performance and reduce TCO.
For society, the value the Group co-creates with customers and partners reduces CO2 emissions and helps realize a circular economy. Based on this strategy, Bridgestone
has focused on this solution business in recent years by measures represented by the acquisition of Bandag in 2007, introducing “ECO Value Pack” service which bundles
new tires, retread tires and tire maintenance service into a single package for transport operators and other customers. Moreover, Webfleet solutions joined our businessfrom 2019. “WEBFLEET” service supports transportation operation and contributes to improved safety, efficiency and productivity by managing various data related tovehicle operations. It also contributes to improved fuel efficiency and reduced CO2 emissions by streamlining operations. To date, 900,000 vehicles have used WEBFLEET.
By combining vehicle operations data with the Bridgestone Group’s knowledge of tire wear and durability, it can provide a wider range of solutions, including products andservices based on customers’ unique operating conditions and needs. As an example, one customer reported that WEBFLEET reduced fuel consumption costs by 10% and
CO2 emissions by 2000 tonnes. Additionally, data on vehicle operating and tire usage conditions is being deployed by R&D teams to more rapidly develop high-quality tires
that meet customers’ evolving needs. Based on the strategy, Bridgestone will maximize the value of the solution to meet the needs of customers and create business
opportunities that can contribute from the perspective of climate change. The figure of “Cost to realize opportunity“ shows annual cost based on actual expense of tire’s
research and development including technology development for reducing tire-rolling resistance in 2019 (= 87.8 billion yen ).
Comment

C3. Business Strategy

C3.1
CDP

(C3.1) Have climate-related risks and opportunities influenced your organization’s strategy and/or financial planning?
Yes, and we have developed a low-carbon transition plan

C3.1a
(C3.1a) Does your organization use climate-related scenario analysis to inform its strategy?
Yes, qualitative

C3.1b(C3.1b) Provide details of your organization’s use of climate-related scenario analysis.
Climate- Details
relatedscenariosandmodelsapplied
2DS
IEA 450

C3.1d

CDP

1. Purpose As the impact of climate change risks on future automobile market trends is very important to Bridgestone as a tire manufacturer, we extracted climate risks to incorporate into mid-long term
strategy. 2. Time horizon We conducted scenario analysis with business projections as of 2030 because we did the analysis as a part of the study to consider mid-term target towards 2030, the target
year of the SDGs. 3. Boundary The scope targets the tire business, which is our core segment that accounts for 84% of sales. There are 96 tire-related production bases in the Americas, Europe/Middle
East/Africa/Russia, China/Asia Pacific and Japan. 4. Scenario identification We selected 2 degree / 4 degree scenarios to clarify climate risks widely on overall aspects (including procurement,
manufacturing, logistics etc. not limiting to our product/service). We consider the 2 scenarios would be appropriate representatives of contrast viewpoints of “low carbon society” and society whereclimate change actualizes due to increasing of carbon emission. 5. Methodology 1)List climate risks on the scenarios widely 2) Estimate financial impacts of the risks with the following inputs and their
future prediction. -Financial information (Sales, cost, operating profit, capital expenditure etc.) -Non-financial information (CO2 emission, energy consumption, material consumption, water intake etc.) External information (Carbon price/tax, price of renewable energy, material, water etc.) 3) Evaluate importance of each risk based on the impacts and probability 6. Assumption on the analysis 1) On the
2 degree scenario, we assume that physical impact such as flood, water shortage caused by climate change won’t be significant impact driver so the risks to focus is limited to strong rise of social
demand and stricter policy. 2) On the 4 degree scenario, we assume that GHG emission will be kept high due to insufficient climate policy and/or social actions. Therefore, the risks to focus are limited
to physical impact caused by high temperature, flood, hurricane, drought etc. 3) On both scenarios, we assume that we won’t conduct any particular countermeasures for the climate risks. 7. Results
and implications to business objectives / strategy We found the following risks are especially important for us on each scenario. <2 degree scenario> - Increased cost on manufacturing due tointroduction of carbon pricing / tax - Increased price of natural rubber caused by stronger demand for forest protection and shortage of its supply - Increased demand for products with lower CO2
emission (brought by fuel-efficient tires etc.) and investment on technologies to achieve it In addition, we recognizes that the important risks extracted are the same for well below 2 degree and 1.5
degree case although those magnitudes are bigger.. <4 degree scenario> - Increased price of natural rubber caused by lower yield and supply due to abnormal weather - Damage on operation of
manufacturing sites by sever and frequent weather disasters - Reduced revenue from winter tires caused by snowfall reduction According to the analysis, not taking any action will end in financial impact
such as increasing of cost and the impact should be managed properly. The results of this scenario analysis are reflected in our new Mid-Long Term Business Strategy. To become a sustainable
solutions company, the Group is focused on developing advanced mobility solutions that contribute social and customer value. One example is the WEB FLEET, operation management service thatutilizes vehicle telematics data. For customers, the solutions that maximize tire performance help optimize operations, improve vehicle performance and reduce total cost. For society, the solution
reduces CO2 emissions and helps promote a circular economy. We will create and expand solutions in the medium to long term, contributing to reduce CO2 emission across the product lifecycle andentire value chain.

(C3.1d) Describe where and how climate-related risks and opportunities have influenced your strategy.
Have climate- Description of influence
related risks
andopportunities
influenced
your strategy
in this area?
Products
andservices

Yes

Tire industry has maximum limits on rolling resistance and the labelling system have been introduced. For Bridgestone, failing to respond to these systems could be a risk of sales
decline of ECO products, however, it also could be an opportunity to increase our sales of such products by improving rolling resistance of a tire. The potential of financial impact to net
sales is estimated 30.51 billion yen per 1% of our sales is increased by taking the opportunity or decreased by occurrence of the risk, in the short term. Since this risk impact is big,
Bridgestone provides products and services which can reduce customers' CO2 emissions such as fuel-efficient tires, in order to take opportunities of product efficiency regulations andstandards and changing consumer behaviour toward low rolling resistance tires. In 2019, Bridgestone launched “Enliten,” an innovative lightweight tire technology that balances
increasing considerations for the environment with performance demands. After maintaining athletic performance and tire life, this technology makes it possible to reduce weight by
about 20% and reduce rolling resistance by about 30% compared to conventional passenger car tires. Benefiting car manufacturers, drivers and environment, tires with embedded
Enliten technology also improves the vehicle handing and stability to increase driving pleasure. In 2019, Bridgestone announced T&DPaaS (Tire & Diversified products as a Solution), a
new solution business strategy, which also includes the expansion of “Dan-totsu” (the absolute and clear leaders) products including low fuel consumption performance. In the medium
term, based on the above opportunities, we set the next mid-term target “Milestone 2030” : Contribute to global CO2 emissions reduction across the lifecycle and value chain (Scope 3)
of our products and services exceeding five times our operation’s (Scope 1 and 2) CO2 emissions by 2030 (vs 2020). Including expansion of T&DPaaS, we will promote activities toarchive Milestone2030.

Supplychain
and/or
value
chain

Yes

Bridgestone set the next environmental mid-term target “Milestone 2030”, and promote to reduce CO2 emissions across the product lifecycle and entire value chain. As one of example
of approach, the appropriate maintenance service when using tires that contributes to CO2 reduction for customers. It will also be an opportunity to increase profits when the need for
fuel-efficient tires and cost reductions increases due to the effects of climate change in the short term. To enhance the system to provide this service through our overwhelming service
network in short term, which is our strength, Bridgestone acquired TOMTOM TELEMATICS B.V., for €910 Million Cash Consideration, the leading provider of digital fleet solutions(Netherlands) in 2019. With this acquisition, Webfleet solutions joined our business, which provide all the information fleet managers need to protect drivers, manage their inventories,
optimize operations and total cost of ownership per vehicle, and reduce environmental impact. Monitoring and analysing driver behaviour and optimizing routes reduces fuel costs andgreenhouse gas emissions. We think that this service will contribute to the long-term reduction of CO2 emissions for our customers. Another case study is commercialization of tires
using recycled carbon black as the raw material by a partnership with Delta Energy Group LLC. Bridgestone Americas, Inc. Bridgestone replaces carbon black with recovered carbon
black (rCB), which is obtained by thermally decomposing end-of-life (EOL) tires, commercializes tires using this, and sells it in the United States market from 2019. The process by DeltaEnergy Group to extract materials reduces 81% CO2 emission per ton as compared to new carbon black. By the end of 2020, Bridgestone plans to increase the use of the company’s
rCB to 6,800 metric tons, equivalent to about 2 million EOL tires and a reduction of about 10,900 tonnes CO2 emissions.

Investment Yes
in R&D

By introducing new technologies Bridgestone encourages providing products and services which can contribute to reducing CO2 emissions, such as fuel-efficient tires. There is apossibility of sales decrease in case of becoming less competitive because of a delay in technology development. Since this risk impact is big, Bridgestone invests in R&D for ecoproducts/services in the short term. For development, it is necessary to develop technology that enhances fuel efficiency while ensuring excellent safety and quality. Especially inEurope, in order to reduce CO2 emissions from automobiles, stricter CO2 reduction targets have been set for automobile manufacturers. We have promoted technological development
to realize high-level fuel efficiency that meets this demand. In 2019, Bridgestone have developed a new technology called "Enliten" that can significantly reduce the rolling resistance oftires by reducing the weight of the tires while maintaining the dynamic performance such as vehicle handling and the wear performance that leads to tire life. Tires based on thistechnology can reduce CO2 emissions due to tires when driving gasoline vehicles by approximately 30%, and extend the distance that electric vehicles can travel on a single charge. It
contributes to climate change response and mobility society from two aspects: the fuel efficiency of vehicles and the performance of electric vehicles. In the medium term, based on theabove opportunities, we set the next mid-term target “Milestone 2030” : Contribute to global CO2 emissions reduction across the lifecycle and value chain (Scope 3) of our products andservices exceeding five times our operation’s (Scope 1 and 2) CO2 emissions by 2030 (vs 2020). We will promote activities to archive Milestone2030. The entire research anddevelopment expense of the Global Group totalled 105.2 billion yen per year in 2019. Among that expense, tire’s research and development expenses totalled 87.8 billion yen in 2019.

Operations Yes

Efforts to reduce CO2 emissions in production are a direct means to prevent global warming, and many countries have discussions on the introduction of carbon pricing, which is also an
opportunity to reduce costs in the future. Bridgestone has been working to reduce CO2 based on the mid-term target, "By 2020, reduce CO2 emissions per net sales from operations
and products' after-use by 35 % (vs 2005)." We are proceeding with the improvement energy efficiency though equipment and processes improvements, and introduction of renewableenergy. In 2019, Bridgestone installed solar power generation equipment at Pune plant (India) and Wuxi plant (China), and 34000MWh of electricity has switched to renewable energy.
In the medium term, based on the above opportunities, we set the next mid-term target “Milestone 2030”: Reduce our absolute CO2 emissions (Scope 1 and 2) by 30% and aspire to
reduce by 50% by 2030 (vs 2011). We will promote activities to archive Milestone2030.

C3.1e(C3.1e) Describe where and how climate-related risks and opportunities have influenced your financial planning.
Financialplanning
elements
that havebeen
influenced

Description of influence

Row Revenues
In 2019, The factor that particularly affected financial plans related climate risk was Acquisitions and divestments: Bridgestone has focus on the solution business, represented by the newly
1
Direct costs launched strategy named “Bridgestone T&DPaaS (Tire & Diversified products as a Solution)”. The appropriate maintenance service when using tires that contributes to CO2 reduction for
Indirectcustomers is positioned as "Dan-totsu" service in this strategy. And it will also be an opportunity to increase profits when the need for fuel-efficient tires and cost reductions increases due to thecosts
effects of climate change in the short term. To enhance the system to provide this service through our overwhelming service network, which is our strength, Bridgestone acquired TOMTOM
Capital
TELEMATICS B.V., for €910 Million Cash Consideration, the leading provider of digital fleet solutions (Netherlands) in 2019. With this acquisition, Webfleet solutions joined our business, which
expenditures provide all the information fleet managers need to protect drivers, manage their inventories, optimize operations and total cost of ownership per vehicle, and reduce environmental impact.
CapitalMonitoring and analysing driver behaviour and optimizing routes reduces fuel costs and greenhouse gas emissions. We think that this service will contribute to the long-term reduction of CO2
allocation
emissions for our customers as one of T&DPaaS solutions. Other financial plans affected are as follows. Revenues: We promoted sales expansion of eco-products/services such as the ECOPIA
Acquisitions brand as an opportunity to increase profits as the market changing to low-carbon. In Japan, the ratio of environmental products in 2019 was 98%. Direct costs: Increased procurement costs
anddue to a rubber supply shortage is a major risk for Bridgestone. Therefore, we set a Global Sustainable Procurement Policy to help identify and evaluate qualified suppliers and promote best
divestments practices on our value chain. Capital allocation: The entire research and development expense of the Global Group including costs for developing eco-related technology (i.e. developing tires
Liabilities
with low rolling resistance), machines/equipment (i.e. tire building machine with low energy consumption) etc. totalled 103.5 billion yen per year in 2018. Expenses and investments mainly for
introducing equipment for energy saving, including upgrading them, at Bridgestone plants amounted to 4,079 million yen in 2018. Access to capital: Introducing highly efficient equipment tomanufacturing facilities is one important measure for CO2 reduction and we have promoted and will promote this.

C3.1f(C3.1f) Provide any additional information on how climate-related risks and opportunities have influenced your strategy and financial planning (optional).

C4. Targets and performance

CDP

C4.1
(C4.1) Did you have an emissions target that was active in the reporting year?
Both absolute and intensity targets

C4.1a(C4.1a) Provide details of your absolute emissions target(s) and progress made against those targets.
Target reference number
Abs 1Year target was set
2019
Target coverage
Company-wide
Scope(s) (or Scope 3 category)
Scope 1+2 (market-based)
Base year
2011
Covered emissions in base year (metric tons CO2e)4584491
Covered emissions in base year as % of total base year emissions in selected Scope(s) (or Scope 3 category)100
Target year
2030
Targeted reduction from base year (%)
50
Covered emissions in target year (metric tons CO2e) [auto-calculated]
2292245.5
Covered emissions in reporting year (metric tons CO2e)
3945245% of target achieved [auto-calculated]
27.8873270773135
Target status in reporting year
New
Is this a science-based target?
Yes, we consider this a science-based target, but this target has not been approved as science-based by the Science-Based Targets initiative
Please explain (including target coverage)
Bridgestone set a new Mid-term Targets, Milestone 2030. Focused target: Reduce our absolute CO2 emissions (Scope 1 and 2) by 30% and aspire to reduce by 50% by
2030
Target reference number
Abs 2Year target was set
2019
Target coverage
Company-wide
Scope(s) (or Scope 3 category)
Scope 1+2 (market-based)
The second absolute target covers the CO2 emission amount by operations and products ’ after-use excess our contribution from avoided emissions when our customers
use the tires by improving fuel efficiency of our tires.
Base year
2011
Covered emissions in base year (metric tons CO2e)4584491
Covered emissions in base year as % of total base year emissions in selected Scope(s) (or Scope 3 category)100
Target year
2050
Targeted reduction from base year (%)
100
Covered emissions in target year (metric tons CO2e) [auto-calculated]

CDP

0
Covered emissions in reporting year (metric tons CO2e)
3945245% of target achieved [auto-calculated]
13.9436635386567
Target status in reporting year
New
Is this a science-based target?
No, but we are reporting another target that is science-based
Please explain (including target coverage)
The Number “100” written in “Targeted reduction from base year (%)” is the number of target of international society which our target refers to. Our long-term environmental
vision for 2050 and beyond is “Contribute to globally-agreed target (towards carbon neutral society)” We recognize that the international community aims to become carbon
neutral society based on the Paris Agreement, IPCC reports, and subsequent international debates.
Target reference number
Abs 3Year target was set
2019
Target coverage
Company-wide
Scope(s) (or Scope 3 category)
Scope 3 (upstream & downstream)
Base year
2020
Covered emissions in base year (metric tons CO2e)
Covered emissions in base year as % of total base year emissions in selected Scope(s) (or Scope 3 category)100
Target year
2030
Targeted reduction from base year (%)
Covered emissions in target year (metric tons CO2e) [auto-calculated]<Calculated field>
Covered emissions in reporting year (metric tons CO2e)0% of target achieved [auto-calculated]<Not Applicable>
Target status in reporting year
New
Is this a science-based target?
No, but we are reporting another target that is science-based
Please explain (including target coverage)
Bridgestone set a new Mid-term Targets, Milestone 2030. Focused target: Contribute to global CO2 emissions reduction across the value chain (Scope 3) of our products
and services exceeding five times our operation’s (Scope 1 and 2) CO2 emissions by 2030

C4.1b

CDP

(C4.1b) Provide details of your emissions intensity target(s) and progress made against those target(s).
Target reference number
Int 1Year target was set
2010
Target coverage
Company-wide
Scope(s) (or Scope 3 category)
Other, please specify (Scope 1+2(Market-based)+3(Purchased goods & services, Upstream transportation & distribution, Downstream transportation and distribution, Endof-life treatment of sold products, Upstream leased assets))
The target covers Scope 1+2(Market-based method + location-based method) + 3（Purchased goods & services, Upstream transportation & distribution, Downstream
transportation and distribution, End-of-life treatment of sold products, Upstream leased assets）
Intensity metric
Metric tons CO2e per unit revenue
Base year
2005
Intensity figure in base year (metric tons CO2e per unit of activity)585% of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure
100
Target year
2020
Targeted reduction from base year (%)
35
Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated]
380.25% change anticipated in absolute Scope 1+2 emissions-15% change anticipated in absolute Scope 3 emissions-15
Intensity figure in reporting year (metric tons CO2e per unit of activity)384% of target achieved [auto-calculated]
98.1684981684982
Target status in reporting year
Underway
Is this a science-based target?
No, but we are reporting another target that is science-based
Please explain (including target coverage)
Focusing on the lifecycle of the Group’s products, we are working to reduce sales intensity of CO2 emitted in the manufacturing process from raw material procurement toproduction, logistics, and products’ after-use. CO2 intensity of the base year is 585 tCO2/hundred million yen. Individual targets/measures are considered by each businessdivision for achieving our overall objective, and progress is being made toward the objective. The results thereof are compiled at the Corporate Communication Division andthe status of objective achievement is reviewed at Global EXCO

C4.2
(C4.2) Did you have any other climate-related targets that were active in the reporting year?
No other climate-related targets

C4.3(C4.3) Did you have emissions reduction initiatives that were active within the reporting year? Note that this can include those in the planning and/or
implementation phases.
Yes

C4.3a

CDP

(C4.3a) Identify the total number of initiatives at each stage of development, and for those in the implementation stages, the estimated CO2e savings.
Number of initiatives

Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)Under investigation0

0

To be implemented*

93

4299

Implementation commenced*

135

9248

Implemented*

36

7549

Not to be implemented

0

0

C4.3b

CDP

(C4.3b) Provide details on the initiatives implemented in the reporting year in the table below.
Initiative category & Initiative type
Energy efficiency in buildings

Other, please specify (Insulation and maintenance)

Estimated annual CO2e savings (metric tonnes CO2e)820
Scope(s)Scope 1
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
19417000
Investment required (unit currency – as specified in C0.4)
95677000
Payback period
4-10 years
Estimated lifetime of the initiative
6-10 years
Comment
Initiative category & Initiative type
Energy efficiency in buildings

Other, please specify (HVAC, lighting etc.)

Estimated annual CO2e savings (metric tonnes CO2e)287
Scope(s)Scope 2 (market-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
1200000
Investment required (unit currency – as specified in C0.4)
6000000
Payback period
4-10 years
Estimated lifetime of the initiative
6-10 years
Comment
Initiative category & Initiative type
Energy efficiency in production processes

Estimated annual CO2e savings (metric tonnes CO2e)
6443
Scope(s)Scope 1
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
79377000
Investment required (unit currency – as specified in C0.4)
394607000
Payback period
4-10 years
Estimated lifetime of the initiative
6-10 years
Comment

CDP

Other, please specify (Switching fuel, optimizing process, etc.)

C4.3c
(C4.3c) What methods do you use to drive investment in emissions reduction activities?
MethodComment

Other
Relevant divisions report the emission costs and reduction benefits of CO2-related measures in the budgetary discussions, and investment decisions on capital expenditure are made for overall(Pleaseoptimization. Management examines the business plans in the yearly mid-term plan, but carefully reviews investment projects based on Investment Profit Criteria taking into account the CO2 emission
see thecosts and reduction benefits as the criteria at that time. Based on the EUA price, CO2 emissions are converted into monetary value and incorporated into the Investment Profit Criteria using theComment Discounted Cash Flow method and used as one of the indexes for investment decisions. Both aspects of cost increase and decrease resulting from CO2 emission increase/decrease are considered forcolumn) decision making.

C4.5(C4.5) Do you classify any of your existing goods and/or services as low-carbon products or do they enable a third party to avoid GHG emissions?
Yes

C4.5a
(C4.5a) Provide details of your products and/or services that you classify as low-carbon products or that enable a third party to avoid GHG emissions.
Level of aggregation
Company-wide
Description of product/Group of products
Fuel-efficient tires: Tires that have reduced tire rolling resistance which influences vehicle fuel efficiency. A wide-ranging line-up is available, from passenger car tires to tires
for trucks/buses, and the design facilitates rolling resistance in order to enhance fuel efficiency. Specifically, through the use of NanoPro-Tech which exercises control overthe fine structure of materials, we are striving to reduce rolling resistance by reducing energy loss and controlling heat generation of tread rubber.
Are these low-carbon product(s) or do they enable avoided emissions?
Avoided emissions
Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissions
Other, please specify ("Tyre LCCO2 Calculation Guidelines" published by JATMA)% revenue from low carbon product(s) in the reporting year71
% of total portfolio value<Not Applicable>
Asset classes/ product types<Not Applicable>
Comment
CO2 reduction using fuel-efficient tires during the product use stage. Reasons for the possibility of reduction: Improvement of tire rolling efficiency can contribute to fuelefficiency improvement/CO2reduction when customers use one’s vehicles. Since the tire fuel efficiency or its standards differ by country, we approximate CO2 emissions.
When we calculate based on "Tyre LCCO2 Calculation Guidelines" published by JATMA, due to reduction in tire rolling resistance, it contributed about 13,600,000 tonnes of
CO2 reduction in 2019 compared with the products in 2005.
Level of aggregation
Group of products
Description of product/Group of products
Commercial roofing and building envelope solutions such as energy-saving polyiso insulations, roofing membranes, vegetative roofing solutions, airtight building envelope
systems, etc. which qualify for Leadership in Energy and Environmental Design(LEED) credits and contribute to healthy, high-performance construction.
Are these low-carbon product(s) or do they enable avoided emissions?
Avoided emissions
Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissions
Please select% revenue from low carbon product(s) in the reporting year29
% of total portfolio value<Not Applicable>
Asset classes/ product types<Not Applicable>
Comment
The percentage was estimated as the number of product line which contributes to "Energy & Atmosphere" category of the LEED rating system divided by total number of
product line of our subsidiary - "Firestone Building Products". As in their latest sustainability report, 4 of 14 main product line contributes to the category. (12 of 14
contributes to at least one category.)

C5. Emissions methodology
CDP

C5.1
(C5.1) Provide your base year and base year emissions (Scopes 1 and 2).
Scope 1
Base year start
January 1 2005
Base year end
December 31 2005
Base year emissions (metric tons CO2e)
2303629
Comment
Scope 2 (location-based)
Base year start
Base year end
Base year emissions (metric tons CO2e)
Comment
Scope 2 (market-based)
Base year start
January 1 2005
Base year end
December 31 2005
Base year emissions (metric tons CO2e)2267134
Comment

C5.2(C5.2) Select the name of the standard, protocol, or methodology you have used to collect activity data and calculate emissions.
Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with Global Warming, Superceded by Revision of the Act on Promotion of Global
Warming Countermeasures (2005 Amendment)
The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)

C6. Emissions data

C6.1
(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons CO2e?
Reporting year
Gross global Scope 1 emissions (metric tons CO2e)
1807183
Start date
<Not Applicable>
End date<Not Applicable>
Comment

C6.2

CDP

(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.
Row 1​Scope 2, location-based​
We are reporting a Scope 2, location-based figure
Scope 2, market-based
We are reporting a Scope 2, market-based figure
Comment

C6.3(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons CO2e?
Reporting year
Scope 2, location-based
2284265
Scope 2, market-based (if applicable)
2138119
Start date
<Not Applicable>
End date<Not Applicable>
Comment

C6.4(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting
boundary which are not included in your disclosure?
Yes

C6.4a

CDP

(C6.4a) Provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in yourdisclosure.
SourceGHGs except CO2
Relevance of Scope 1 emissions from this source
Emissions are not relevant
Relevance of location-based Scope 2 emissions from this source
Emissions are not relevant
Relevance of market-based Scope 2 emissions from this source (if applicable)
Emissions are not relevant
Explain why this source is excluded
At production sites in Japan and the Americas, GHGs except CO2 are collected but are excluded because emissions are minimal relative to CO2.
SourceProduction sites with number of workers below 50 people and that is not the subject of accreditation of ISO14001
Relevance of Scope 1 emissions from this source
Emissions are not relevant
Relevance of location-based Scope 2 emissions from this source
Emissions are not relevant
Relevance of market-based Scope 2 emissions from this source (if applicable)
Emissions are not relevant
Explain why this source is excluded
The reasons why production sites with number of workers below 50 people and are not the subject of accreditation of ISO14001, are excluded is because their influence on
the total is very limited.
SourceOffice/storages etc., nonproduction sites (supplementary facilities of plants are excluded)
Relevance of Scope 1 emissions from this source
Emissions are not relevant
Relevance of location-based Scope 2 emissions from this source
Emissions are not relevant
Relevance of market-based Scope 2 emissions from this source (if applicable)
Emissions are not relevant
Explain why this source is excluded
Office energy is collected at major sites but excluded because emissions are minimal.
SourceCompany owned car
Relevance of Scope 1 emissions from this source
Emissions are not relevant
Relevance of location-based Scope 2 emissions from this source
Emissions are not relevant
Relevance of market-based Scope 2 emissions from this source (if applicable)
Emissions are not relevant
Explain why this source is excluded
Refilling company owned cars outside the premises is excluded because their influence on the total is very limited. (Refilling fuel within the premises is included in Scopes)

C6.5(C6.5) Account for your organization’s gross global Scope 3 emissions, disclosing and explaining any exclusions.
Purchased goods and services
Evaluation status
Relevant, calculated
Metric tonnes CO2e
7709433
Emissions calculation methodology
Calculated by multiplying the purchased amount of each raw material with CO2 emission factors for each raw material determined by Japan Rubber Manufacturers
Association calculation methods.
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0Please explain

CDPCapital goods
Evaluation status
Relevant, calculated
Metric tonnes CO2e
922548Emissions calculation methodology
Calculated by multiplying the capital expenditures material with CO2 emission factors determined by Japanese Ministry of the Environment
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0Please explain
Fuel-and-energy-related activities (not included in Scope 1 or 2)
Evaluation status
Relevant, calculated
Metric tonnes CO2e
536211
Emissions calculation methodology
Calculated by multiplying the energy consumption with CO2 emission factors determined by DEFRA
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0Please explain
Upstream transportation and distribution
Evaluation status
Relevant, calculated
Metric tonnes CO2e438592Emissions calculation methodology[Ground transportation] Calculated by multiplying purchased amount of each raw material with CO2 emission factors for each raw material determined by Japan Rubber
Manufacturers Association calculation methods. [Marine transportation] The result for 2008 is calculated based on the volume and distance of marine transportation withrespect to the CO2 emission factors of the GHG protocol for shipment. It is calculated as a ratio of the purchased raw materials for 2019 and 2008.
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0Please explain
Waste generated in operations
Evaluation status
Relevant, calculated
Metric tonnes CO2e
185400Emissions calculation methodology
Calculated by multiplying the amount of waste generated with CO2 emission factors determined by Japanese Ministry of the Environment
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0Please explain
Business travel
Evaluation status
Relevant, calculated
Metric tonnes CO2e
18667
Emissions calculation methodology
Calculated by multiplying the amount of waste generated with CO2 emission factors determined by Japanese Ministry of the Environment
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0Please explain

CDPEmployee commuting
Evaluation status
Relevant, calculated
Metric tonnes CO2e
66166
Emissions calculation methodology
Calculated by multiplying the amount of waste generated with CO2 emission factors determined by Japanese Ministry of the Environment
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0Please explain
Upstream leased assets
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain
Included in scope1 and scope2
Downstream transportation and distribution
Evaluation status
Relevant, calculated
Metric tonnes CO2e
515674Emissions calculation methodology
CO2 per unit sales is calculated from CO2 emitted from a part of one’s own store and multiply it by total sales for proportional allotment
Percentage of emissions calculated using data obtained from suppliers or value chain partners
3
Please explain
Processing of sold products
Evaluation status
Relevant, calculated
Metric tonnes CO2e
3002
Emissions calculation methodology
Calculate the power consumed during tire installation by multiplying installation power per tire by the number of tires sold.
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0Please explain
Use of sold products
Evaluation status
Relevant, calculated
Metric tonnes CO2e109054198
Emissions calculation methodology
Calculated from our Tyre sales unit and CO2 emission per 1 tire when it used based on ”Tyre LCCO2 Calculation Guidelines Ver. 2.0" by The Japan Automobile Tyre
Manufacturers Association, Inc.(JATMA) April 2012
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0Please explain

CDP

End of life treatment of sold products
Evaluation status
Relevant, calculated
Metric tonnes CO2e
2043099
Emissions calculation methodology
Calculated by multiplying the purchased quantity of each raw material with CO2 emission factors determined by Japan Rubber Manufacturers Association calculation
methods.
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0Please explain
Downstream leased assets
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain
Bridgestone had no leased assets in 2019.
Franchises
Evaluation status
Relevant, calculated
Metric tonnes CO2e
72420
Emissions calculation methodology
Calculate by multiplying CO2 emission per typical shop by the number of franchise shops
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0Please explain
Investments
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain
Investments are not main business of Bridgestone.
Other (upstream)
Evaluation status
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain

CDPOther (downstream)
Evaluation status
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain

C6.7(C6.7) Are carbon dioxide emissions from biogenic carbon relevant to your organization?
Yes

C6.7a
(C6.7a) Provide the emissions from biogenic carbon relevant to your organization in metric tons CO2.
CO2 emissions from biogenic carbon (metric tons CO2)
Row 1

Comment

15530

C6.10
(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tons CO2e per unit currency total revenue and provide any
additional intensity metrics that are appropriate to your business operations.
Intensity figure
0.00000112
Metric numerator (Gross global combined Scope 1 and 2 emissions, metric tons CO2e)
3945245
Metric denominator
unit total revenue
Metric denominator: Unit total
3525600101000
Scope 2 figure used
Market-based% change from previous year
1.5
Direction of change
Decreased
Reason for change
The Bridgestone Group is working to minimize its CO2 emissions by maximizing energy efficiency and expanding its use of renewable energy at manufacturing and otherfacilities. As an example of efforts to expand renewable energy, Wuxi plant (China) and Pune plant (India) began using electricity generated by large-scale, solar power
generators installed on the facilities’ roofs with electricity suppliers in 2019. Total CO2 emissions was decreased approximately 4.9% in 2019 comparing that of 2018 mainly
for reduction in tire weight and energy reduction at production sites.

C7. Emissions breakdowns

C7.1(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas type?
No

C7.2

CDP

(C7.2) Break down your total gross global Scope 1 emissions by country/region.
Country/Region

Scope 1 emissions (metric tons CO2e)

United States of America

386739.95

Canada23374.05

Mexico119040.8

Costa Rica

12082.05

Argentina

19694.11

Brazil73711.71

France0Belgium

4022.23

Spain

48401.13

Poland15418.36

Italy30731.8

Hungary

11701.74

United Kingdom of Great Britain and Northern Ireland

439.65

Turkey45866.13

South Africa

43493.11

Liberia

11287.18

Thailand

224737.84

Indonesia

110794.41

Taiwan, Greater China

8212.87

India

19361.57

Australia

67.82

Malaysia

62.63

Philippines

60.04

Viet Nam

4913.76

China

58518.92

Japan526961.4

Russian Federation

7455.02

C7.3(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able to provide.
By business division

C7.3a(C7.3a) Break down your total gross global Scope 1 emissions by business division.
Business division

Scope 1 emissions (metric ton CO2e)

Tire

1698401

Others108740

C7.5

CDP

(C7.5) Break down your total gross global Scope 2 emissions by country/region.
Country/Region

Scope 2, location-based(metric tons CO2e)

Scope 2, market-based(metric tons CO2e)

Purchased and consumed electricity,heat, steam or cooling (MWh)Purchased and consumed low-carbon electricity, heat, steam or coolingaccounted for in Scope 2 market-based approach (MWh)United States of America

609301.89

583722.66

1446929.21

143895.11

Canada17094.05

17094.05

120380.679004.09

Mexico65140.665244.05

13669421857.92

Costa Rica

135.851358.48

56603.3

93818.41

Argentina

16975.69

16975.69

48350

14254.29

Brazil31071.88

31071.88

266482.72

210856.28

France17522.71

21217.26

112164.94

15279.91

Belgium

2413.112816.1814153.15

2626.06

Spain

55616.58

346.67

192358.27

191547.87

Poland172543.58

186786.33

314854.46

27005.19

Italy

1400.83

1591.364300.98476.55

Hungary

19332.65

26194.03

72761.2

9553.55

United Kingdom of GreatBritain and Northern Ireland

251.81

271

1026.53268.95

Turkey75583.2580263.48

174031.82

51157.68

South Africa

53696.85

68643.16

59689.7

3286.37

Liberia00020258.4

Thailand

230053.74

221138.77

537045.46

75675.69

Indonesia

76658.6577818.45

101260.18

12582.63

Taiwan, Greater China

32155.6232155.62

74829.6

1800.35

India

81869.53

81345.06

114008.53

20149.17

Australia

5102.385102.386868.191076.9

Malaysia

664.92552.391022.95

172.52

Philippines

3301.093301.094935.84

1211.76

Viet Nam

10054.41

10054.41

27905.67

12555.37

China253908.39

254934.87

476542.57

96489.8

Japan440642.2

339382.76

843657.29

138047.55

Russian Federation

19124.51

8722.3724885.51

4283.27

C7.6(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able to provide.
By business division

C7.6a(C7.6a) Break down your total gross global Scope 2 emissions by business division.
Business division

Scope 2, location-based (metric tons CO2e)

Scope 2, market-based (metric tons CO2e)

Tires

2029365

1896439

Others262251

241665

C7.9(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of the previous reporting year?
Decreased

C7.9a

CDP

(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined), and for each of them specify how your emissions compare
to the previous year.
Change in
Direction Emissions
Please explain calculation
emissionsof change value(metric tons
(percentage)
CO2e)
Change in2084
renewableenergyconsumption

Decreased 0.05

Our 2 plants in China and India have switched some of the purchased electricity to solar power, resulting in a total CO2 reduction of 2084 tCO2e. Therefore,
the same amount which is equivalent to 0.05% was reduced from 2018. (-2084/4155713) * 100 = -0.05% *Previous year(2018) Scope 1 + 2 emission was
4155713 tCO2e

Otheremissions
reduction
activities

Decreased 0.06

We reduced 2,715 tonnes as a result of energy-saving activities in 2018. Since Scope 1 and 2 emissions were 4,257,657 tonnes the previous year, that
represents a 0.06% reduction from 2017. (-2715/4257657 ) * 100 = -0.06% (i.e. a 0.06% decrease in emissions) *Previous year(2017) Scope 1 + 2 emission
was 4257657 tCO2e

2715

Divestment<Not
Applicable>

Acquisitions<Not
Applicable>

Mergers<Not
Applicable>

Change in
output<Not
Applicable>

Change in
81909.42
methodology

Decreased 1.92

Change inboundary<Not
Applicable>

Change inphysicaloperatingconditions<Not
Applicable>

Unidentified<Not
Applicable
>

Other

21221.55

Decreased 0.5

Electricity emission factors was updated to the latest figures. The values on the left was difference between Scope1 + 2(Market-based) emission in 2018 withthe latest electricity emission factors and that with the factors of previous year. (-81909.42/4257657 ) * 100 = -1.92% (i.e. an -1.92% decrease in emissions)*Introduction of renewable electricity in 4 Spanish plants written in the first column was excluded from this calculation *Previous year(2017) Scope 1 + 2
emission was 4257657 tCO2e

Due to changes in the composition of energy sources, change in production volume, etc. (21221.55/4257657 ) * 100 = 0.50% (i.e. an 0.50% increase inemissions) *Previous year (2017) Scope 1 + 2 emission was 4257657 tCO2e

C7.9b
(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on a location-based Scope 2 emissions figure or a market-based Scope 2
emissions figure?
Market-based

C8. Energy

C8.1(C8.1) What percentage of your total operational spend in the reporting year was on energy?
More than 0% but less than or equal to 5%

C8.2(C8.2) Select which energy-related activities your organization has undertaken.
Indicate whether your organization undertook this energy-related activity in the reporting year
Consumption of fuel (excluding feedstocks)

Yes

Consumption of purchased or acquired electricity

Yes

Consumption of purchased or acquired heat

No

Consumption of purchased or acquired steam

Yes

Consumption of purchased or acquired cooling

No

Generation of electricity, heat, steam, or cooling

Yes

C8.2a
CDP

(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks) in MWh.
MWh from non-renewable sources

Total (renewable and non-renewable) MWh

Consumption of fuel (excluding feedstock)

Heating value

LHV (lower heating value) 37395

MWh from renewable sources

7238098

7275493

Consumption of purchased or acquired electricity<Not Applicable>

121223936622704849907

Consumption of purchased or acquired heat

<Not Applicable><Not Applicable><Not Applicable><Not Applicable>

Consumption of purchased or acquired steam<Not Applicable>

0383836383836

Consumption of purchased or acquired cooling<Not Applicable><Not Applicable><Not Applicable><Not Applicable>

Consumption of self-generated non-fuel renewable energy<Not Applicable>

20817<Not Applicable>

20817

Total energy consumption<Not Applicable>

124584911284204

12530052

C8.2b(C8.2b) Select the applications of your organization’s consumption of fuel.
Indicate whether your organization undertakes this fuel application
Consumption of fuel for the generation of electricity

Yes

Consumption of fuel for the generation of heat

Yes

Consumption of fuel for the generation of steam

Yes

Consumption of fuel for the generation of coolingNo

Consumption of fuel for co-generation or tri-generation

Yes

C8.2c
(C8.2c) State how much fuel in MWh your organization has consumed (excluding feedstocks) by fuel type.
Fuels (excluding feedstocks)
PetrolHeating value
LHV (lower heating value)
Total fuel MWh consumed by the organization
8238.33
MWh fuel consumed for self-generation of electricity0
MWh fuel consumed for self-generation of heat
8238.33
MWh fuel consumed for self-generation of steam0
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration
0
Emission factor
2.27
Unit
kg CO2e per liter
Emissions factor source"Facilities in Japan: Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with Global Warming, Superceded by Revision of the Act
on Promotion of Global Warming Countermeasures (2005 Amendment) Others:The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised
Edition)"Comment
Including Biogasoline
Fuels (excluding feedstocks)
Kerosene
Heating value
LHV (lower heating value)
Total fuel MWh consumed by the organization
4702.92
MWh fuel consumed for self-generation of electricity0
MWh fuel consumed for self-generation of heat

CDP

4702.92
MWh fuel consumed for self-generation of steam0
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration
0
Emission factor
2.49
Unit
kg CO2e per liter
Emissions factor source"Facilities in Japan: Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with Global Warming, Superseded by Revision of the Act
on Promotion of Global Warming Countermeasures (2005 Amendment) Others: The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised
Edition)"Comment
Fuels (excluding feedstocks)
DieselHeating value
LHV (lower heating value)
Total fuel MWh consumed by the organization
121777.7
MWh fuel consumed for self-generation of electricity
60888.85
MWh fuel consumed for self-generation of heat48711.08
MWh fuel consumed for self-generation of steam
12177.77
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration
0
Emission factor
2.67
Unit
kg CO2e per liter
Emissions factor source"Facilities in Japan: Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with Global Warming, Superseded by Revision of the Act
on Promotion of Global Warming Countermeasures (2005 Amendment) Others: The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised
Edition)"Comment
Fuels (excluding feedstocks)
Fuel Oil Number 4
Heating value
HHV (higher heating value)
Total fuel MWh consumed by the organization
53428.17
MWh fuel consumed for self-generation of electricity0
MWh fuel consumed for self-generation of heat0
MWh fuel consumed for self-generation of steam
53428.17
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration
0
Emission factor
2.71
Unit
kg CO2e per liter

CDPEmissions factor source
Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with Global Warming, Superseded by Revision of the Act on Promotion of
Global Warming Countermeasures (2005 Amendment)
Comment
We put information about Heavy Oil A as Fuel Oil No.4
Fuels (excluding feedstocks)
Fuel Oil Number 6
Heating value
HHV (higher heating value)
Total fuel MWh consumed by the organization
209828.01
MWh fuel consumed for self-generation of electricity0
MWh fuel consumed for self-generation of heat0
MWh fuel consumed for self-generation of steam
209828.01
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration
0
Emission factor
3
Unit
kg CO2e per liter
Emissions factor source
Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with Global Warming, Superseded by Revision of the Act on Promotion of
Global Warming Countermeasures (2005 Amendment)
Comment
We put information about Heavy Oil B/C as Fuel Oil No.6
Fuels (excluding feedstocks)
Liquefied Petroleum Gas (LPG)
Heating value
HHV (higher heating value)
Total fuel MWh consumed by the organization
14525085
MWh fuel consumed for self-generation of electricity0
MWh fuel consumed for self-generation of heat
145250.85
MWh fuel consumed for self-generation of steam0
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration
0
Emission factor
2.71
Unit
metric tons CO2e per metric ton
Emissions factor source"Facilities in Japan: Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with Global Warming, Superseded by Revision of the Act
on Promotion of Global Warming Countermeasures (2005 Amendment) Others: The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised
Edition)"Comment
Fuels (excluding feedstocks)
Liquefied Natural Gas (LNG)
Heating value
LHV (lower heating value)
Total fuel MWh consumed by the organization
410836.86

CDP

MWh fuel consumed for self-generation of electricity0
MWh fuel consumed for self-generation of heat
31681.82
MWh fuel consumed for self-generation of steam
126727.27
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration
252427.77
Emission factor
3
Unit
metric tons CO2e per metric ton
Emissions factor source
Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with Global Warming, Superseded by Revision of the Act on Promotion of
Global Warming Countermeasures (2005 Amendment)
Comment
Fuels (excluding feedstocks)
Town Gas
Heating value
LHV (lower heating value)
Total fuel MWh consumed by the organization
1056413.01
MWh fuel consumed for self-generation of electricity0
MWh fuel consumed for self-generation of heat
80251.89
MWh fuel consumed for self-generation of steam
321007.57
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration
655153.55
Emission factor
2.23
Unit
metric tons CO2e per m3
Emissions factor source"Facilities in Japan: Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with Global Warming, Superseded by Revision of the Act
on Promotion of Global Warming Countermeasures (2005 Amendment) Others: The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised
Edition)"Comment
Fuels (excluding feedstocks)
Natural Gas
Heating value
LHV (lower heating value)
Total fuel MWh consumed by the organization
4694737.16
MWh fuel consumed for self-generation of electricity0
MWh fuel consumed for self-generation of heat
864704.61
MWh fuel consumed for self-generation of steam
3458818.45
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration
371214.09
Emission factor
1.89

CDP

Unit
metric tons CO2e per m3
Emissions factor source"Facilities in Japan: Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with Global Warming, Superseded by Revision of the Act
on Promotion of Global Warming Countermeasures (2005 Amendment) Others: The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised
Edition)"Comment
Fuels (excluding feedstocks)
Coal
Heating value
LHV (lower heating value)
Total fuel MWh consumed by the organization
126943.67
MWh fuel consumed for self-generation of electricity0
MWh fuel consumed for self-generation of heat0
MWh fuel consumed for self-generation of steam
126943.67
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration
0
Emission factor
2.13
Unit
metric tons CO2e per metric ton
Emissions factor source
The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition): Anthracite, Brown coal briquettes, Sub bituminous coal, Other
bituminous coalComment
Fuels (excluding feedstocks)
Other, please specify (Carbon fuel oil)
Heating value
HHV (higher heating value)
Total fuel MWh consumed by the organization
405941.5
MWh fuel consumed for self-generation of electricity
128531.74
MWh fuel consumed for self-generation of heat
277409.76
MWh fuel consumed for self-generation of steam0
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration
0
Emission factor
3.3
Unit
metric tons CO2e per metric ton
Emissions factor source
Measured value of carbon content ratio of the fuelComment
Information of "carbon fuel oil" is shown in this row
Fuels (excluding feedstocks)
Wood Pellets
Heating value
LHV (lower heating value)
Total fuel MWh consumed by the organization
37394.72

CDP

MWh fuel consumed for self-generation of electricity0
MWh fuel consumed for self-generation of heat0
MWh fuel consumed for self-generation of steam
37394.72
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration
0
Emission factor0
Unit
metric tons CO2e per metric ton
Emissions factor source
GHG protocol "Emission Factors from Cross-Sector Tools"
Comment
According to the GHG protocol "Emission Factors from Cross-Sector Tools, the emission factor is 1.7472. But we consider the biomass fuel as renewable/low carbon
source and exclude from calculation of the Scope1.

C8.2d(C8.2d) Provide details on the electricity, heat, steam, and cooling your organization has generated and consumed in the reporting year.
Total Gross generation(MWh)

Generation that is consumed by theorganization (MWh)Gross generation from renewable sources Generation from renewable sources that is consumed by the(MWh)organization (MWh)Electricity 672693.46

640738.41

20816.57

20816.57

Heat1174277.65

1174277.65

0

0

Steam

4005740.79

4005740.79

29678

29678

Cooling

0

0

0

0

C8.2e
(C8.2e) Provide details on the electricity, heat, steam, and/or cooling amounts that were accounted for at a zero emission factor in the market-based Scope 2
figure reported in C6.3.
Sourcing method
Other, please specify (Off-grid energy consumption from an on-site installation or through a direct line to an off-site generator owned by another company)
Low-carbon technology type
Biomass
Country/region of consumption of low-carbon electricity, heat, steam or coolingCentral America
MWh consumed accounted for at a zero emission factor
37395
Comment
Sourcing method
Green electricity products (e.g. green tariffs) from an energy supplier, supported by energy attribute certificates
Low-carbon technology type
Other, please specify (Breakdown of the source is unknown)
Country/region of consumption of low-carbon electricity, heat, steam or cooling
Europe
MWh consumed accounted for at a zero emission factor
206436
Comment
4 facilities in Spain purchases renewable electricity with certificates.

C9. Additional metrics

CDP

C9.1
(C9.1) Provide any additional climate-related metrics relevant to your business.

C10. Verification

C10.1(C10.1) Indicate the verification/assurance status that applies to your reported emissions.
Verification/assurance status
Scope 1

Third-party verification or assurance process in place

Scope 2 (location-based or market-based)

Third-party verification or assurance process in place

Scope 3

Third-party verification or assurance process in place

C10.1a(C10.1a) Provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements.
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/ section reference
Please refer to the page.3/3 of "AS_GHG_BS-2019_en_signed.pdf" for the actual value
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100

C10.1b

CDP

(C10.1b) Provide further details of the verification/assurance undertaken for your Scope 2 emissions and attach the relevant statements.
Scope 2 approach
Scope 2 location-based
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/ section reference
Please refer to the page.3/3 of "AS_GHG_BS-2018_en_signed.pdf" for the actual value
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100
Scope 2 approach
Scope 2 market-based
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/ section reference
Please refer to the page.3/3 of "AS_GHG_BS-2018_en_signed.pdf" for the actual value
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100

C10.1c(C10.1c) Provide further details of the verification/assurance undertaken for your Scope 3 emissions and attach the relevant statements.
Scope 3 category
Scope 3: Purchased goods and services
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/section reference
Please refer to the page.3/3 of "AS_GHG_BS-2018_en_signed.pdf" for the actual value
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100
Scope 3 category
Scope 3: Capital goods
Verification or assurance cycle in place
Annual process

CDPStatus in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/section reference
Please refer to the page.3/3 of "AS_GHG_BS-2018_en_signed.pdf" for the actual value
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100
Scope 3 category
Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/section reference
Please refer to the page.3/3 of "AS_GHG_BS-2018_en_signed.pdf" for the actual value
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100
Scope 3 category
Scope 3: Upstream transportation and distribution
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/section reference
Please refer to the page.3/3 of "AS_GHG_BS-2018_en_signed.pdf" for the actual value
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100
Scope 3 category
Scope 3: Waste generated in operations
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/section reference
Please refer to the page.3/3 of "AS_GHG_BS-2018_en_signed.pdf" for the actual value
Relevant standard

CDPISO14064-3
Proportion of reported emissions verified (%)
100
Scope 3 category
Scope 3: Business travel
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/section reference
Please refer to the page.3/3 of "AS_GHG_BS-2018_en_signed.pdf" for the actual value
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100
Scope 3 category
Scope 3: Employee commuting
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/section reference
Please refer to the page.3/3 of "AS_GHG_BS-2018_en_signed.pdf" for the actual value
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100
Scope 3 category
Scope 3: Downstream transportation and distribution
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/section reference
Please refer to the page.3/3 of "AS_GHG_BS-2018_en_signed.pdf" for the actual value
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100
Scope 3 category
Scope 3: Processing of sold products
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete

CDPType of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/section reference
Please refer to the page.3/3 of "AS_GHG_BS-2018_en_signed.pdf" for the actual value
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100
Scope 3 category
Scope 3: Use of sold products
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/section reference
Please refer to the page.3/3 of "AS_GHG_BS-2018_en_signed.pdf" for the actual value
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100
Scope 3 category
Scope 3: End-of-life treatment of sold products
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/section reference
Please refer to the page.3/3 of "AS_GHG_BS-2018_en_signed.pdf" for the actual value
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100
Scope 3 category
Scope 3: Franchises
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
AS_GHG_BS-2019_en_signed.pdf
AS_BS-2019_en_signed.pdf
Page/section reference
Please refer to the page.3/3 of "AS_GHG_BS-2018_en_signed.pdf" for the actual value
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)

CDP

100

C10.2
(C10.2) Do you verify any climate-related information reported in your CDP disclosure other than the emissions figures reported in C6.1, C6.3, and C6.5?
Yes

C10.2a(C10.2a) Which data points within your CDP disclosure have been verified, and which verification standards were used?
Disclosure module
verification relatestoDataverified

Verification Please explain
standard

C8. Energy

EnergyISAE 3000
consumption

Total energy consumption, Energy consumption (fuel) including fuel from renewable sources, Energy consumption (purchased electricity) including electricity fromrenewable sources, Energy consumption (purchased steam), energy consumption (self-generated renewable electricity from non-fuel sources; solar, etc.)

C11. Carbon pricing

C11.1(C11.1) Are any of your operations or activities regulated by a carbon pricing system (i.e. ETS, Cap & Trade or Carbon Tax)?
Yes

C11.1a(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.
EU ETS
Japan carbon tax

C11.1b
(C11.1b) Complete the following table for each of the emissions trading schemes you are regulated by.
EU ETS% of Scope 1 emissions covered by the ETS
6.2% of Scope 2 emissions covered by the ETS
0Period start date
January 1 2019
Period end date
December 31 2019
Allowances allocated98346
Allowances purchased
4875
Verified Scope 1 emissions in metric tons CO2e112201
Verified Scope 2 emissions in metric tons CO2e0
Details of ownership
Facilities we own and operate
Comment

C11.1cCDP

(C11.1c) Complete the following table for each of the tax systems you are regulated by.
Japan carbon tax
Period start date
January 1 2019
Period end date
December 31 2019
% of total Scope 1 emissions covered by tax
29
Total cost of tax paid
152291846
Comment% of emission covered by tax was calculated by Scope1 emission in Japan divided by global Scope1 emission. And total cost of tax paid was calculated by Scope1
emission in Japan multiplied Japan Carbon tax rate (289yen/tCO2e) *In addition, the carbon tax is indirectly affect electricity price in the Scope 2.

C11.1d(C11.1d) What is your strategy for complying with the systems you are regulated by or anticipate being regulated by?

As our strategy for carbon pricing system, we intend to minimize additional cost by CO2 emission and such system by promoting CO2 emission reduction actively and steadily
on global basis. Representative measures are as followings.
- Energy saving initiatives at production sites including active introduction of highly efficient equipment to new facility(e.g. As example in 2018, Bridgestone’s Turkish affiliate
Brisa Bridgestone Sabancı Lastik Sanayi ve Ticaret A.Ş.(BRISA) established a new manufacturing facility for radial tires in Aksaray Province, Turkey with investment whichamounted to 300 million USD. This new plant achieved 30% energy saving and contributes to our manufacturing with less CO2 emission.)- Renewable energy introduction at production sites (e.g. As example, three of its tire manufacturing facilities (Bilbao, Puente San Miguel and Burgos) and one tire cordfacility (Usansolo), all in Spain, sourced 100% of their electricity from renewable sources in 2018. Additionally, three facilities in Europe (Tatabanya, Hungary, and Stargard
and Poznan, Poland) are powered by 100% renewable electricity in 2020.)- Energy saving initiatives at business offices (e.g. turning off lights and air-controls when unnecessary)- Enlightenment activities to raise employees’ environmental awareness(e.g. continuing education not only by on-site training but also by utilizing e-leaning.)

C11.2(C11.2) Has your organization originated or purchased any project-based carbon credits within the reporting period?
No

C11.3
(C11.3) Does your organization use an internal price on carbon?
Yes

C11.3aCDP

(C11.3a) Provide details of how your organization uses an internal price on carbon.
Objective for implementing an internal carbon price
Drive energy efficiency
Drive low-carbon investment
GHG Scope
Scope 1
Scope 2
Application
Applied to decisions of investment for equipment
Actual price(s) used (Currency /metric ton)
3015
Variance of price(s) used
If the actual price is available in each regional system, the price is applied preferentially. If not, the price above is utilized commonly inside company as a guide andreviewed once a year.
Type of internal carbon priceShadow priceImpact & implication
Because the proportion of Bridgestone’s CO2 emissions that are subject to EU-ETS with high carbon pricing is small( 6.2% in 2019), Bridgestone stipulates that acomprehensive evaluation including the realization of a sustainable society such as CO2 reduction should be made when making investment decisions in the internal
guideline. Carbon price of CO2 emission cost is set accordingly considering business characteristics and regional situations of each business unit, however the common
default value for reference is updated once a year. When it is expected that the CO2 emission impact from the investment will be large, the business unit will calculate theinvestment payback period including the CO2 emission cost due to carbon pricing, and use it as the basis for making decision on investment profitability.

C12. Engagement

C12.1(C12.1) Do you engage with your value chain on climate-related issues?
Yes, our suppliers
Yes, our customers
Yes, other partners in the value chain

C12.1aCDP

(C12.1a) Provide details of your climate-related supplier engagement strategy.
Type of engagement
Engagement & incentivization (changing supplier behavior)
Details of engagement
Run an engagement campaign to educate suppliers about climate change
Other, please specify (Engaging suppliers to take the third party assessment on sustainability including environment/climate change related aspect)% of suppliers by number
100% total procurement spend (direct and indirect)
100% of supplier-related Scope 3 emissions as reported in C6.5
6
Rationale for the coverage of your engagement
Coverage: In Feb.2018, Bridgestone issued the Global Sustainable Procurement Policy which is applicable to all purchased materials and services, as well as all suppliers
globally. Rationale for the coverage: The journey towards “100% sustainable materials” which is one of the Bridgestone’s goals for 2050 and beyond and includes aspect of
mitigation of climate related impact, will not be simple, nor can Bridgestone achieve it alone. This policy is to help identify and evaluate qualified suppliers, promote bestpractices, and serve as a communication and improvement tool for the industry. Bridgestone expects all of its suppliers to recognize the importance of Sustainable
Procurement, and work with the Company to implement appropriate practices to create value for all stakeholders. Note: During the development of the policy, Bridgestone
gained insights from external stakeholders, including international consultants, non-governmental organizations (NGOs), materials suppliers, natural rubber farmers, andkey customers to ensure the policy reflects industry standards and best practices. In addition, the policy is supported by a global implementation and communication plan.
Available in 12 languages, the policy will be implemented, governed and enforced regionally. As an immediate first step, Bridgestone will prioritize working closely with its
employees, suppliers and customers and other industry experts to implement the policy.
Impact of engagement, including measures of success"The four major areas are impacted throughout Bridgestone’s supply chain: “Transparency”, “Compliance”, “QCD (Quality/Cost/Delivery) and Innovation”, “Sustainable
Procurement Practices” incorporating environmentally responsible procurement including measures for climate change, reduction of GHG emission as well as the use ofenergy. Through a 2019 partnership with EcoVadis, a leading provider of sustainability, risk and performance ratings for global supply chains, Bridgestone conductedassessing suppliers’ current sustainability practices, as well as the possible support needed to improve performance. This activity could be an opportunity for suppliers to
confirm and improve their actions for preventing climate change further. As an example of the indicator to confirm the progress, Bridgestone focuses on the ratio of
acknowledgement of the policy by suppliers. As of the end of 2019, acknowledgement rate of the policy has been completed by more than 99 percent of the company’s Tier
1 tire material suppliers and the majority of them are in the process of completing third-party assessments with EcoVadis.
Comment

C12.1b
(C12.1b) Give details of your climate-related engagement strategy with your customers.
Type of engagement
Collaboration & innovation
Details of engagement
Run a campaign to encourage innovation to reduce climate change impacts% of customers by number
100% of customer - related Scope 3 emissions as reported in C6.5
15
Portfolio coverage (total or outstanding)<Not Applicable>
Please explain the rationale for selecting this group of customers and scope of engagementI) In the development of new vehicle models by automakers, which are our business partners, the development and delivery of fuel-efficient tires that contribute to the
reduction of fuel consumption in cooperation with automakers leads to the reduction of GHG emissions. In addition, we cooperate in calculating the emissions ofautomakers and contribute to reductions in the life cycle by cooperating in the GHG emission survey of automakers through the CDP supply chain program. Because we
promote such activities with all automakers, 100% is input into "size of engagement" ii) By improving the rolling resistance of tires used in automobiles, we contribute toautomakers’ efforts to lower fuel consumption during the use of their products.
Impact of engagement, including measures of successi) Bridgestone continued to develop and deliver fuel-efficient tires that meet the required performance in collaboration with our business partners. In addition, we calculated
the GHG emissions requested in the CDP Supply Chain Program 2019 and responded 100%. Through this activity, we have the opportunity to recognize the need torespond to climate change and the needs of our business partners even within internal. ii) Improvement of fuel efficiency of tires brings CO2 reduction from vehicles. The
direct impact of the engagement is calculated by the result of tire units sold to the automakers multiplied by the average of CO2 emission per tire. And the technology which
is developed by the engagement can be applied tires which are sold directly to end-users for their replacement needs. From this perspective, the engagement has further
potential to contribute CO2 reduction. From this viewpoint, we keep going on improvement of fuel efficiency of tires with corporate-wide and mid-term target on 25%
reduction of rolling resistance which affects fuel efficiency vs 2005 until 2020. The progress towards the target is the measure of success for Bridgestone. As of 2019, theGroup achieved 23% reduction which is equivalent to 13,600,000t-CO2 reduction in our Scope3 (Category11) compared to 2005 baseline. Furthermore, it set a new target
to contribute to global CO2 emissions reduction across the lifecycle and value chain (Scope 3) of our products and services exceeding five times our operation’s (Scope 1
and 2) CO2 emissions by 2030.

C12.1dCDP

(C12.1d) Give details of your climate-related engagement strategy with other partners in the value chain.

Bridgestone Americas, Inc. (Bridgestone) replaces carbon black, which is one of the raw materials for tires, with recovered carbon black (rCB), which is obtained by thermallydecomposing End-of-Life (EOL) tires, commercializes tires using this, and sells it in the United States market from 2019.
rCB is made by Delta Energy Group LLC, which has a partnership with Bridgestone. The move to at-scale commercialization of the company’s rCB, Delta-Energy Group’s
proprietary rCB product recovered from EOL tires, marks a significant milestone in achieving Bridgestone Group’s long-term environmental vision of targeting 100%
sustainable materials – and contributing to globally agreed target (towards carbon neutral society) – by the year 2050 and beyond. The process by Delta-Energy Group to
extract materials reduces 81% CO2 emission per ton as compared to new carbon black.
Bridgestone began evaluating Delta-Energy’s materials in 2007 and became an equity partner in late 2014. Since that time, the use of the company’s rCB as a partial
replacement for new carbon black in new tires has undergone extensive testing to ensure compliance with the high standards and superior quality and performance for which
Bridgestone tires are known.
By the end of 2020, Bridgestone plans to increase the use of the company’s rCB to 6,800 metric tons, equivalent to about 2 million EOL tires and a reduction of about 10,900
tonnes CO2 emissions. Through the partnership with Delta-Energy, Bridgestone will divert millions of EOL tires annually into new products that will give them a new life.

C12.3(C12.3) Do you engage in activities that could either directly or indirectly influence public policy on climate-related issues through any of the following?
Trade associations

C12.3b
(C12.3b) Are you on the board of any trade associations or do you provide funding beyond membership?
Yes

C12.3cCDP

(C12.3c) Enter the details of those trade associations that are likely to take a position on climate change legislation.
Trade association
The Japan Rubber Manufacturers Association (JRMA)
Is your position on climate change consistent with theirs?
Consistent
Please explain the trade association’s position
After the commitment period of the Kyoto Protocol (since 2013), JRMA has been working consistently to achieve the goal of reducing CO2 in 2020 which has been set as atrade association’s target in line with the national policy calling for the ongoing reduction of CO2. In addition, JRMA set the target for 2030 also in 2015. Based on thetargets of industry groups including JRMA, Japan’s reduction targets submitted to COP21 were drawn up. Every year, they give a follow-up report on the reduction status to
the government and steadily promoted activities to reduce the emission. According to the follow-up report which they issued in October 2019, their CO2 emission intensity in2018 was 87.1% vs 2005. This is the result of achieving the target of 85%, continuing from the previous year.
How have you influenced, or are you attempting to influence their position?
At the Environmental Committee, Bridgestone leads industry activities and summarizes the opinions as the chairperson.
Trade association
The Japan Automobile Tyre Manufacturers Association, Inc. (JATMA)
Is your position on climate change consistent with theirs?
Consistent
Please explain the trade association’s position
JATMA is one of the major tire industry associations in the world, and has established the Tire Labelling System in 2010, and has been contributing to increase the ratio of“Fuel Efficient Tires" in the market. (In the lifecycle of tire, CO2 emission in usage stage consists of more than 80%) In 2015, JATMA compiled and announced the benefitsof CO2 emission reduction through reduced rolling resistance of passenger car tires from 2006 to 2012. In 2018, JATMA issued a report on the contribution of rolling
resistance coefficient (RRC) of tires for CO2 reduction. According to the report, CO2 emission per tire has been reduced by 13.9% in 2016, compared to 2006.
How have you influenced, or are you attempting to influence their position?
Our employees have participated in various committees and presented our opinions. At the Environmental Committee, Bridgestone leads industry activities and summarizes
the opinions as the chairperson.
Trade association
World Business Council for Sustainable Development (WBCSD)
Is your position on climate change consistent with theirs?
Consistent
Please explain the trade association’s position
Since 2006, the Tire Industry Project (TIP) under the umbrella of the World Business Council for Sustainable Development has served as a voluntary joint-initiative
undertaken by 11 global leading tire manufacturers, under the leadership of the CEOs, with an aim to identify and address the potential human health and environmental
impacts associated with tire development and use. TIP is a proactive organization that allows the industry’s leading companies to leverage their collective action inadvancing sustainability throughout the industry. In 2019, TIP conducted research on 2018 result of environmental KPIs for tire manufacturing such as CO2 emission andenergy consumption for issuance of a report.
How have you influenced, or are you attempting to influence their position?
As one of the co-chair companies of the Tire Industry Project, Bridgestone is engaged in the visualization of the overall impact of climate change through discussions withother companies.

C12.3f(C12.3f) What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climatechange strategy?
Global functions of sustainability, corporate communication, government relation and standard & regulation, and also each regional function that interact governments,
companies, organizations, and industry groups discuss on climate related issues monthly to ensure global consistency internally. The Corporate Strategy Division which
belongs to Bridgestone’s headquarters is in charge of communication and negotiation with external companies and organizations uniformly handles cooperation with industry
groups mentioned in C12.3c reflecting the roundtable discussion. Important discussions with industry groups are reported to the Global Environment Working Group and the
Global Sustainability Committee (GSC), for review and to ensure consistency and representatives of Bridgestone’s feedback into industry groups.

C12.4

CDP

(C12.4) Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places
other than in your CDP response? If so, please attach the publication(s).
Publication
In mainstream reports
StatusComplete
Attach the document
Annual Report_2019_financial.pdf
Annual Report_2019_operational.pdf
Page/Section reference
Annual Report 2019 consists of Operational Review (OR) and Financial Review (FR). Governance: page 8 Strategy: OR page 11-14 Risks: FR page 7-9 (Climate Change
risk is page 8) Strategy: OR page 4-9, Energy consumption and CO2 emissions (Scope1, 2): OR page 15-16
Content elements
Governance
Strategy
Risks & opportunities
Emissions figures
Comment
High-level description on our governance, strategy and risk&opportunities is included in the report.
Publication
In voluntary sustainability report
StatusComplete
Attach the document
Sustainability Report_2019-2020.pdf
Page/Section reference
Governance: page 19-20. 30-36 Strategy: pages 7-18 Risks&opportunities: page 41 (Contribution to fuel efficiency) page 38(Risk Management) Emission figures: page 35
Emission targets :page 35, 41 page 52-53 (Energy consumption in Environment-related Data) etc.
Content elements
Governance
Strategy
Risks & opportunities
Emissions figures
Emission targets
Other metrics
Comment
Detail of our environmental and Sustainability related activities is written in the report.

C15. Signoff

C-FI(C-FI) Use this field to provide any additional information or context that you feel is relevant to your organization's response. Please note that this field is optional
and is not scored.

C15.1(C15.1) Provide details for the person that has signed off (approved) your CDP climate change response.

Row 1

CDP

Job title

Corresponding job category

Global CSTO (Chief Sustainability Officer)

Chief Sustainability Officer (CSO)