Bridgestone 3.0 Journey2022 Integrated ReportContents

Bridgestone at a Glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  5–6

About this Report

Board of Directors and Executive Officers. . . . . . . . . . 100

Bridgestone’s History of Taking on Challenges. . . ７–8

Stakeholder Engagement. . . . . . . . . . . . . . . . . . . . . . . . . . 101–102

Global CEO Commitment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  9–16

Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103–104

Bridgestone E8 Commitment. . . . . . . . . . . . . . . . . . . . . . . .  17–19

Non–financial Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105–107

Global Leaders Roundtable on the

Corporate and Investor Information. . . . . . . . . . . . . . . . . . 108

Bridgestone E8 Commitment. . . . . . . . . . . . . . . 20–25

For the first time, the Bridgestone Group is publishing the Bridgestone
3.0 Journey 2022 Integrated Report to provide stakeholders with a morecomprehensive and better understanding of its approach and initiatives
aimed at enhancing corporate value over the medium- to long-term while
deepening dialogues with them.

Message from the Global CFO. . . . . . . . . . . . . . . . . . . . . . . 39
Growth Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43–46
Exploratory Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  47–52•

Period: January 1, 2021 to December 31, 2021
(Some activities before or after the period have also been
included.)•

Organizational coverage: Bridgestone Corporation and its
subsidiaries and affiliates around the world.

Progress toward Realizing the Sustainability
Business Framework. . . . . . . . . . . . . . . .  53–57
Innovation & DX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58–62
Topic: Bridgestone Design. . . . . . . . . . . . . . . . . . . . . . . 63–64
Intellectual Property Strategy . . . . . . . . . . . . . . . . . 65–66

Bridgestone 3.0 Journey2022 Integrated Report

Human Resources Strategy . . . . . . . . . . . . . . . . . . . . . . 67–70

Building Trust. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Motorsports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
In Harmony with Nature . . . . . . . . . . . . . . . . . . . . . . . . .  74–76

Throughout this report, Bridgestone or the “Company” refers
to the Bridgestone Corporation, while “the BridgestoneGroup,” or “the Group” refers to all group companies.

•

Bridgestone Americas (abbreviated as BSAM) including
the United States, Canada, Latin America, theCaribbean and Liberia.

•

Bridgestone China Asia Pacific (abbreviated as BSCAP).

•

Bridgestone Europe, Russia, Middle East, India, andAfrica (abbreviated as BSEMIA).

•

Bridgestone Japan (abbreviated as BSJP) including
Japan Tire, Diversified Products Business and Sports/
Cycles Business.

In Harmony with Communities . . . . . . . . . . . . . . . .  77–79

Management and Responses to TCFD

Procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  91–93
Quality and Customer Value . . . . . . . . . . . . . . . . . . . . 94–95
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . 96–99

3 | Contents•

Corporate Governance Reports,
reports on corporate governanceand the Corporate Governance Code(Website: Corporate Governance)

Bridgestone Corporation is the parent company of theBridgestone Group, which includes the following Strategic
Business Units (SBUs).

Build Trust to Propagate Value Co–creation. . . . . 71–79

			and TNFD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89–90

Securities Reports (Website: IR Library)

Reporting Scope

Core Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40–42

		•(GRI) Standards.

Financial Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Topic: Climate and Nature-related Risk

Website: Sustainability

Reporting Principles and Disclosures of the Global Reporting Initiative“Challenging” Spirit. . . . . . . . . . . . . . . . . . 30–37

Risk Management. . . . . . . . . . . . . . . . . . . . 88–89•

social value and customer value as a sustainable solutions company.” This

Reporting Framework of the Value Reporting Foundation, as well as the“Aggressive Approach” andBusiness Continuity (BCP),

Website: Investor Relations

The Group’s vision is “Toward 2050, Bridgestone continues to provide

In preparing this report, the Group referenced the International Integrated

Mid Term Business Plan (2021–2023):

Compliance, Fair Competition. . . . . . . . . . . . . . . . . . 86–87•

with stakeholders.

Mid–Long Term Business Strategy . . . . . . . . . . . . . . . . . 29

Human Rights, Labor Practices . . . . . . . . . . . . . . . . 83–85

information.

realizing the vision and clearly conveys its approach to co-creating value

Value Creation Process. . . . . . . . . . . . . . . . . . . . . . . . . . .  27–28

Safety, Industrial Hygiene. . . . . . . . . . . . . . . . . . . . . . .  81–82

for additional financial and non-financial

the “Bridgestone E8 Commitment” established in March 2022 aimed atwith Sustainability at the Core . . . . . . . . . . . . .  26–70

Corporate Governance. . . . . . . . . . . . . . . . . . . . . . . . . 80–99

Please refer to the following websites

report specifically emphasizes accelerated transformations centered on

Realization of Mid–Long Term Business Strategy

Management Fundamentals for Value Creation andWebsite and Report Information

About the CoverThe cover depicts a profile image of thetire Bridgestone designed for the LUNARCRUISER, jointly developed by the Toyota
Motor Corporation and the Japan Aerospace
Exploration Agency (JAXA), which will provide
support for the Team Japan lunar research
mission. This tire embodies the Bridgestone

Forward-looking Statements

Design pursuit of the aesthetics of a circle with

Forecasts based on projections and plans for the future in this reportspecial textures and contours based on the tire’s

contain unpredictable elements that may cause fluctuations. As such, theyunique function.

do not constitute guarantees by the Company of the achievement of those

Please see pages 63–64 for more information on

the Company’s current assessment.

Bridgestone Design.

Bridgestone 3.0 Journey 2022 Integrated Reportforecasts. Accordingly, actual business results may differ substantially from

About this Report | 4

Bridgestone at a Glance

The Bridgestone Group includes tire, solutions and diversified products businesses with approximately
1601 production and development bases in more than 150 countries throughout the world.

Locations
Zaventem, Belgium

Tire Business

Columbiana,
Ohio, U.S.

Hokkaido, Japan

Aprilia,
Italy

Tochigi, Japan

Wuxi, China

Rome, Italy

Tokyo, Japan

Yixing, China

Fort Stockton,
Texas, U.S.
Tennessee, U.S.

Yokohama, Japan• Tires and tubes for passenger cars,

Pathum Thani,
Thailandtrucks, buses, aircraft, construction
and off-road mining vehicles,

Nong Khae, Thailand

Akron, Ohio, U.S.

Acuna, Mexico

Singaporeindustrial and agricultural

Karawang,Indonesia

machinery, motorcycles, scootersand other vehicles.

San Pedro, Brazil• Automotive parts, automotive

maintenance and repair services,…Regional Head Ofﬁces

raw materials for tires and other…R&D Facilities

products.

11%

Solutions Business

China, Asia Paciﬁc

Revenue• Tire-centric solutions and retail &26%
20%
Europe, Russia,

service: Business to provide added

3,246.1 billion JPY/
28.22 billion USD1

value to products through productand tire-related data.

• Mobility solutions: Business toprovide new value throughproducts, tire-related andMiddle East,
India & Africa

Japan

Revenue by
consolidated
market (2021)
43%
The Americas

21%

mobility-related data.

China, Asia Paciﬁc

Tire Production Volume(tonnage of rubber)

1.78 million tonnes

Diversiﬁed Products
Business27%
19%
Europe, Russia,
Middle East,
India & Africa

Tire production
volume(tonnage of rubber)by geographicalsegment (2021)2

Japan

33%
The Americas• Chemical and industrial products:
Industrial rubber products, building
materials, hoses and other products.

24%
China, Asia Paciﬁc

Consolidated Employees• BSAM Diversiﬁed Products: A
business under BSAM.

135,636 people• Golf goods: Golf balls, golf clubs,
golf wear and others.

16%
Europe, Russia,
Middle East,
India & Africa• Bicycles: Bicycles and bicycle goods.

21%

Japan

Employees
by consolidated
region (2021)2
39%
The Americas• Others: Finance and others.
1
1

As of March 1, 2022.

5 | Bridgestone at a Glance2

Bridgestone 3.0 Journey 2022 Integrated Report

Based on the 115.02 JPY to 1.00 USD, the approximate year-end rate.
As of December 31, 2021.

Bridgestone at a Glance | 6

Bridgestone’s History of Taking on Challenges

Foundation

Second Foundation

Third Foundation

Bridgestone 1.0

Bridgestone 2.0

Bridgestone 3.0

1931-

1988-

2020-

Since its founding in 1931, guided by its unchanging Mission of “Serving Society with Superior Quality,” the Bridgestone Group has expanded and evolved its businessto meet the changing needs of society by continuing to support the mobility and lifestyles of individuals. In the “second foundation” Bridgestone 2.0, with the mergerof Bridgestone and Firestone in 1988, the Group became a global corporation, and with the 2007 acquisition of Bandag and 2019 acquisition of Webﬂeet Solutions,

Bridgestone positioned 2020 as the ﬁrst year of the “third foundation” orBridgestone 3.0 and announced its Mid-Long Term Business Strategy,

placing sustainability at the core of management and business. The Groupidentiﬁed a vision of “Toward 2050, Bridgestone continues to provide

the Group accelerated the development of its retread and solutions businesses.

social value and customer value as a sustainable solutions company.”

In addition, to accelerate transformation toward the realization of its
vision, Bridgestone announced its corporate commitment“Bridgestone E8 Commitment” as the axis to drive management while
earning the trust of future generations on March 1, 2022, the 91st

anniversary of its founding. The Group will drive its transformation as
2007-

Bridgestone 3.0 Journey to be a company that supports employees,society, its partners and customers and continues to provide values
with sustainable growth.

2019-

1997-2010

Formula 1TM 1998 Round 16 Suzuka

2002-2015

MotoGPTM 2015 Round 18 Valencia

1988
Merger with Firestone Tire & Rubber Company, thesecond-largest U.S. tire manufacturer

1931
Foundation
Founded in Kurume, Fukuoka Prefecture (Japan) andbusiness expansion from Japan to Asia supporting
motorization from the ground up
1968
Establishment of the Companyʼs motto: “Serving
Society with Superior Quality”
Founder Shojiro Ishibashi believed that a business that
contributes to its society and country will be forever
proﬁtable. This belief shaped Bridgestoneʼs motto of“Serving Society with Superior Quality,” established in1968. This Mission continues to guide the Group today
as it lives on in Bridgestoneʼs DNA.

7 | Bridgestone’s History of Taking on Challenges

Bridgestone acquired Firestone Tire & Rubber Company, thesecond-largest U.S. tire manufacturer at the time. Thisacquisition made Bridgestone one of the top threemanufacturers in the global tire market. From here, Bridgestoneʼs
journey toward globalization starts. Bridgestone continued its
evolution into a global company, encountering and overcoming
various obstacles such as seeking harmony of corporate cultures
between the two companies, Bridgestone and Firestone.
1997
Participation in Formula 1TM racing
Bridgestone began participating in Formula 1TM racing in 1997 toestablish trust as a global brand and enhance the Companyʼsbrand awareness. Just one year later, in 1998, a team won theseries championship on Bridgestone tires.
With the return to Indy with Firestone brand in 1995 and theparticipation in MotoGP from 2002, Bridgestone supported thedevelopment of motorsports culture from the ground up.

Bridgestone 3.0 Journey 2022 Integrated Report

Start Solutions business for the future
growth toward Bridgestone 3.0
2007

Merger with Bandag, a leading retread
company
Bridgestone acquired the U.S. ﬁrm
Bandag to expand its retread businessthroughout the world. This established astructure for the development of a global
retread business and a foundation for the
expansion of solutions business.
2019
Merger with Webﬂeet Solutions(formerly TomTom Telematics), a
leading digital ﬂeet solutions Provider
in EuropeWith this acquisition, Bridgestone started
the expansion of ﬂeet solutions utilizing
digital technologies.

2022
Full-scale operation of the Bridgestone Innovation Park to promote open
innovation
The Bridgestone Technical Center in Kodaira, Tokyo, was redeveloped and opened as!"#$%&'()*+,--&.&#,'&/0!"##
the Bridgestone Innovation Park, a global hub for innovation and co-creation.
Bridgestone will interact with society, customers and partners, and then deepen these
relationships to foster co-ideation, co-R&D and co-creation. This, in turn, will accelerateinnovation and enable Bridgestone to create new social and customer value.

Bridgestone’s History of Taking on Challenges | 8

Global CEO Commitment

For the sake of the Earth,which future generations of children
have entrusted in our care.
Together with you.
In 2022, the Bridgestone Group established the “Bridgestone E8 Commitment,” a new corporate
commitment in its “third foundation,” or Bridgestone 3.0. This will serve as the axis to drive
management while earning the trust of future generations, as the Group accelerates transformation
toward becoming a sustainable solutions company.
Guided by our unchanging Mission, “Serving Society withthe expansion of renewable energy that is unaffected

Superior Quality,” we positioned 2020 as the first year of

by world affairs, through our own initiatives as well as

our “third foundation” Bridgestone 3.0, and began our new

through cooperation with society. In such circumstances,

journey. Placing sustainability at the core of management

initiatives to realize a sustainable society are becoming

and business, we strive to realize our vision, “Toward 2050,

increasingly important.

Bridgestone continues to provide social and customer
value as a sustainable solutions company.”transformation, as represented by concepts such as

in 1931, in order to continue supporting the mobility

MaaS1, CASE2, and the accelerating shift to electricand lifestyles of individuals in each era, we expanded

vehicles (EVs). The industry structure itself is changing.

company through the “second foundation” Bridgestone
2.0, which started with the merger of Bridgestone andFirestone in 1988. We have expanded and evolved ourbusiness beyond tires, our core business, to diversified
products that supports lives and industries, and tosolutions that understand and solve societal andcustomers’ challenges.

Member of the Board
Global CEO and
Representative Executive Officer

responsibility – as a leading company in the tire andrubber industry that has continued to support socialtransformation and the movement of people and objects
from the ground up – to support the realization of asustainable society. With the Sustainable Development
Goals (SDGs) as a common language, the world ismoving significantly toward achieving a sustainable
society. Based on the belief that the Earth has beenchange including international relations, the global

entrusted in our care by future generations of children, in

economy and the structure of society. The impact of theaddition to continuing our activities for the achievement

COVID-19 pandemic brought about major change in ourof the SDGs, we have selected 8 values through ourlives and economies. In addition, various issues such as

unique perspective and thoughts that we will especiallyclimate change, environmental degradation, biodiversity

focus on to establish our corporate commitment:

loss, widening disparities, increasing social unrest andthe “Bridgestone E8 Commitment.” Using this as thegeopolitical risks continue to increase, each connected toaxis to drive management while earning the trust of

the other. With regard to the destabilization of the global

future generations, we will commit to supporting theenergy supply triggered by the Russia-Ukraine crisis, werealization of a sustainable society by co-creatingmust not only thoroughly conserve energy and improvevalue with employees, society, our partners and our

efficiency of energy use, but also continue to promotecustomers.

2

Bridgestone 3.0 Journey 2022 Integrated Report

In such turbulent times, we believe it is our role and

The environment around us is undergoing significant

1

9 | Global CEO Commitment

industry is undergoing a “once in a century” fundamental

Ever since our founding in Kurume, Fukuoka, Japan

our business from Japan to Asia, evolving into a global

Shuichi Ishibashi

In conjunction with changes in society, the mobility

MaaS (Mobility as a Service)
CASE (Connected, Autonomous, Shared, Electric)

Global CEO Commitment | 10

Bridgestone 3.0 “Bridgestone E8 Commitment”

The axis to drive management while earning the trust of future generations
In the “third foundation” Bridgestone 3.0, we are

our 100th anniversary and beyond, the “Bridgestone

placing sustainability at the core of management andE8 Commitment” embodies our vision and will servebusiness and driving efforts to transform to a company
that continues to create value while also growing on
its own. In order to build a base for this transformation,these past two years from 2020 to 2021, we have been
driving corporate transformation (CX) according to our
Mid-Long Term Business Strategy Framework and Mid
Term Business Plan (2021–2023). As a result, in the 2021
financial results, we achieved our 2022 targets a year
ahead of plan and became closer to building a “strong”
Bridgestone capable of responding to changes in thebusiness environment. It was against this backdrop thatthe “Bridgestone E8 Commitment” was established on
March 1, 2022 in celebration of the 91st anniversaryof Bridgestone’s founding. Looking ahead to 2031,

as guiding vectors as the global group accelerates its
transformation.
The “Bridgestone E8 Commitment” consists of 8
Bridgestone-like values starting with the letter “E”(Energy, Ecology, Efficiency, Extension, Economy,

our Mission, Bridgestone Essence Framework (corporate

approach” and “challenging” spirit, according to ourphilosophy) and our DNA cultivated throughout our 91-

Mid-Long Term Business Strategy Framework and Mid

year history including: “focus on quality,” “respect for

Term Business Plan (2021–2023), the Bridgestone Group‘on-site’,” being “attentive and supportive of customer

aims to build the foundation for a “strong” Bridgestone,

problems,” and “challenge.” They also embody ourcapable of responding to change.

vision and are indicative of the future possibilities andevolution of our corporate activities.

Regarding “past negative legacies,” we looked backIn addition, this commitment is a progression of ourhave been addressing our declining profits, working

global sustainability activities, which began in earnest in
the 2000s.

Emotion, Ease and Empowerment), which we will

To promote consistent CSR activities, the Group definedcommit to creating, through Bridgestone-like “purpose”

the 22 CSR Focus Points and pursued comprehensiveand “process,” together with employees, society, ouractivities across the Group. In 2017, we established ourpartners and customers to support the realization

global compass, Our Way to Serve , identifying threeof a sustainable society. They include the realization

Bridgestone-like priority areas that helped evolve ourof a carbon neutral mobility society, advancing tire

CSR activities: Mobility, People and Environment. In

technologies and solutions, and inspiring excitement andusing this as a guideline, we promoted sustainability

spreading joy to the world of mobility. The 8 “E”s embody

activities, staying close to local communities aroundeach of our sites while ensuring global consistency.
As we enter the next stage, we are evolving our CSR
compass to a corporate commitment with business
management perspectives, while including the threepriority areas. We will accelerate our transformation toa sustainable solutions company both by strengtheningalignment with corporate strategy and by developing a
new corporate culture.

on the Group’s performance from 2015 to 2019, andto rebuild earning power. We have restructured ourmanufacturing footprint and business portfolio over the
mid-long term across all of our business, including tires,
diversified products and material manufacturing, while
also working on expense and cost structure reformationsuch as fixed cost reduction. In addition, we reinforced
the foundations for our financial strategy, including
establishing an extended Global CFO role, emphasizing
ROIC (return on invested capital) as the most importantmanagement index, and reinforcing the Global Controller
function. This function supports agile decision making by
thoroughly evaluating capital and return on investments,
while also strictly monitoring post-decision progress andflexibly suggesting improvements. We are establishingfoundations to further reinforce our earning power.
Regarding “immediate issues,” we are conducting
thorough flexible and agile management especiallyof our supply chain, maximizing supply in response tochanges in the business environment and tire demand,and enabling aggressive sales. We have also beenthoroughly improving the quality of our business,

Bridgestone 3.0 Journey– Corporate transformation (CX) for the
past two years

Bridgestone E8 Commitment

The corporate transformation (CX) that we have driven
the past two years has been based on three axes: “Tackle• Energy

Committed to the realization of a carbon neutral mobility society.

• Ecology

Committed to advancing sustainable tire technologies and solutions that preserve the environment for future generations.

issues: Focusing on execution and delivering results,” and• Efficiency

Committed to maximizing productivity through the advancement of mobility.

“Lay foundation for the future growth.” By focusing on• Extension

Committed to nonstop mobility and innovation that keeps people and the world moving ahead.

“execution” and “delivering results” with an “aggressive• Economy

Committed to maximizing the economic value of mobility and business operations.

• Emotion

Committed to inspiring excitement and spreading joy to the world of mobility.

• EaseCommitted to bringing comfort and peace of mind to mobility life.

• Empowerment

Committed to contributing to a society that ensures accessibility and dignity for all.

11 | Global CEO Commitment

Bridgestone 3.0 Journey 2022 Integrated Reportpast negative legacies without delay,” “Immediate

expanding sales of high-value-added premium products
such as High Rim Diameter tires for passenger cars, tires
with ENLITEN technology (innovative tire technology
achieving both environmental and driving performance),
and Bridgestone MASTERCORE tires for mining vehicles.
As a result of these initiatives, we achieved 2022 targets
ahead of schedule in our 2021 financial results, andare steadily building the foundations for a “strong”
Bridgestone. The Bridgestone Group will continue efforts
to transform change into opportunity with an “aggressive
approach” and “challenging” spirit.

Global CEO Commitment | 12

Further growth toward 2030

Sustainability at the core of management and businessTo accelerate further growth looking ahead to 2030 and

Regarding sustainability, which we have placed at theinitiatives to expand ENLITEN tires optimized to EVs andbeyond in line with the “Bridgestone E8 Commitment,”core of our management and business, we are focusing

enhance EV charging service utilizing the Group’s retail

we are “laying foundations for future growth,” executing

our efforts in particular around the realization of

network. We will continue to strengthen our global

strategic growth investments focused around the tire

carbon neutrality and a circular economy as described

initiatives to contribute to the realization of a carbon

in “Energy” and “Ecology” of the “Bridgestone E8

neutral mobility society, including addressing Scope 3

Commitment.” We aim to establish a Sustainability

emission. Regarding a circular economy, we are driving

Business Model that ensures the link between

efforts to pass on a better Earth to future generations.

sustainability activities and business. The Group set its

With the target of increasing the use of recycled andlong-term environmental vision toward 2050 in 2012,

renewable materials to 40% of its resources by 2030 andand Milestone 2030, its mid-term environmental targets

achieving 100% of sustainable material by 2050, we aretoward 2030 to realize this vision, was announced

promoting the retread business which is the core of ourin 2020. In terms of carbon neutrality, we have set asolutions business, and our recycle business.

business (our core business) and the solutions business(our growth business). In the tire business, we are building
and implementing the ENLITEN business strategy as thecore of our new tire business strategy. Until now, we havebeen expanding ENLITEN as an innovative tire technology
optimized for EVs. We will now expand its value to
products and business models as a new premium strategy

raw materials, the soft-robotics business, and the guayule

for the EV era, and strive to simultaneously create values

business that aims for the diversification of naturalthat can sometimes be contradictory, such as reducing

rubber sources, based on co-creation we are continuing

our environmental footprint while achieving businessthe exploration of technologies and business models for

growth, and customizing tire performance for individualcommercialization. We are also looking into new potential

customers while streamlining the entire value chain from

exploratory business areas.

manufacturing to sales and optimizing costs.

By evolving business activities in our core, growth, andAlso, we have started examining our global production

exploratory businesses, we will drive our journey tofootprint from a mid-long term perspective, and are

realize the 8 “E”s, including Energy, Ecology, Efficiency,

enhancing production to respond to sales expansion

Extension, Economy, and Ease.

of premium products, as well as replacing production
equipment from that for Low Rim Diameter passenger
tires to High Rim Diameter tires. While keeping “local
production for local sales” to some extent in Europe andthe United States, from a global optimization perspective,
we will strengthen our structure to “produce and sell”
premium products and also build a sourcing strategy
capable of responding to drastic changes in demand.
In terms of our growth business, we are continuing
investments in each region for the global expansion ofsolutions. So far, we have enhanced mobility solutions
through M&A, including Webfleet Solutions in Europe andAzuga in the United States. We will create new value,
maximizing the synergy between the tire business andbetween the two companies. We are also accelerating
expansion of the solutions business that amplifies value
during the “use” of tires, reinforcing retail & service
business leveraging our global retail network. We willcontinue to execute strategic growth investments
including M&A, strategic partnerships and creating
business ecosystems, carefully determining the growthand profitability of each business in order to establish aclear target of reducing CO2 emission (Scope 1 and 2)
by 50% in 2030 compared to our 2011 baseline, andachieving carbon neutrality in 2050. In Europe, our groupcompany BSEMIA achieved a renewable energy ratio

We will reinforce and accelerate initiatives forsustainability across the entire value chain, in all of our“produce and sell,” “use,” and “renew” phases.

of 100% for electricity for all its European sites in 2021.
We will expand our use of renewable energy globallyand also promote the development of green and smart
manufacturing sites. In addition, we are driving ourMoreover, we established a new business portfolio
for the Group’s further growth. Apart from our coretire business which remains our base, we divided thesolutions business that is our growth business, into threebusinesses based on the characteristics of each: tirecentric solutions, retail & service, and mobility solutions.
By adding the diversified products business to these fourbusinesses and establishing a new business portfoliothat consists of five businesses as well as the exploratory
business, we will pursue the realization of the new “glocal/
portfolio management.” So far, the Group has been driving“glocal (global x local)” management that employs a local
strategy tailored to each business and region in line withthe global strategy, securing group global optimization.
Looking forward, assuming continuous turbulence,
further reinforcement of a flexible and agile management
structure capable of responding to changes in thebusiness environment and seeking global optimization, is
becoming urgent. One such effort is the appointment of
two Joint Global COOs under the Global CEO in May 2022.
We will leverage the strengths of our global management

solid foundation for the solutions business.

team cultivated so far, demonstrate the strengths of each

In addition, we will promote our exploratory businessstructure capable of responding to change with flexibility

in areas leveraging the Group’s core competencies andand agility.

of our businesses, and continue to evolve a management

strengths. In the recycle business that “renews” tires to

13 | Global CEO Commitment

Bridgestone 3.0 Journey 2022 Integrated Report

Global CEO Commitment | 14

To support the business evolutions, we haveplace to work that encourages diversity and empowers

will continuously evolve the Group’s governance. In

redeveloped our R&D site in Kodaira, Tokyo, Japan, andall teammates. These initiatives are represented inaddition to reinforcing corporate governance to keeping

the “Empowerment” value of the “Bridgestone E8

promises and carrying them out, governance for co-Commitment”: Committed to contributing to a society

creation will become more important as we promotethat ensures accessibility and dignity for all.

co-creation with diverse partners. By building trust

started full-scale operation of Bridgestone Innovation
Park in April 2022. It will serve as a new venue for“earning empathy and promoting co-creation” to create
new value through innovation with diverse stakeholders.

Basing ourselves on this axis of “Empowerment,” theWith the “Bridgestone E8 Commitment” as our axis, weGroup will also continue various social contribution

will drive innovation in technology, business model anddesign, and also continue driving Bridgestone DX (digitaltransformation) to accelerate such innovation. The Groupwill create new value by combining “mastering rubber”
and “mastering road contact” — our strong “real” corecompetencies cultivated in our 91-year history — withdigital technologies such as simulation. In addition, we
are working on new workstyles and the transformationof our corporate culture to promote innovation. With
the Bridgestone Innovation Park at the core, we willreinforce co-creation between global innovation sites,

We will accelerate the Bridgestone 3.0 Journey toward a

communities. In March 2022, we donated approximately

sustainable solutions company together with our global

500 million JPY across the group in response to the

130,000 teammates (employees), society, our partners

Russia-Ukraine crisis, and employees in our Europeanand customers with the “Bridgestone E8 Commitment”

group company have been participating in volunteer

as the axis to drive management while earning theactivities. We will continue supporting humanitariantrust of future generations. The journey ahead is sureefforts for children and those placed in difficult

to contain many obstacles, including the pursuit ofsituations by the crisis, staying closely by their side toboth social and customer value, and the pursuit ofregain peace and safety.

sustainability and corporate growth. However, theexpectations and fulfilling our social responsibilities

Lab in Akron, Ohio, United States, to drive innovation
with employees and diverse stakeholders. Our passion
for innovation is embedded in “Extension: Committed to
nonstop mobility and innovation that keeps people andhope to foster trust from society and our stakeholders,earn your empathy toward the “Bridgestone E8

and build foundations for further value creation.

Commitment,” so that you would join our journey for thesake of the Earth. The Bridgestone Group will commit tocreating 8 values together with employees, society, ourpartners and customers to realize a sustainable society.

and trust of more stakeholders. For example, we will

Bridgestone 3.0, we will first pursue “circle aesthetics,”

evolve our motorsports activities that helped establish

focusing on embodying our transformation to a

Bridgestone as a global brand with the return to Indysustainable solutions company by incorporating thein 1995, participation in Formula 1 from 1997, and inimage of the “circle” and the concept of “circulation” into

MotoGP from 2002. We will evolve our motorsports

various designs and business models.

and supporting the development of motorsports culture
is represented in the “Emotion: Committed to inspiring
excitement and spreading joy to the world of mobility”

Concerning talent investment, the most importantelement for our transformation and the source ofcompetitive advantage, we are promoting Bridgestone’s
HRX（human resource transformation）
to build anvalue of the “Bridgestone E8 Commitment.”

environment where the company and diverse individuals

Furthermore, from an innovation perspective wepromote different initiatives such as the development ofwill evolve Bridgestone’s design - which has led our

digital talent crucial for Bridgestone 3.0, and Bridgestone

corporate activities and played an essential role in both

Next 100, a program to develop talent for the next

the founding and second foundation of Bridgestone.

generation of global management. The Group also

The introduction of the new corporate identity including

promotes diversity, equity and inclusion (DE&I) throughthe Bridgestone logo and B Mark in 1984 was positioned

initiatives such as joining The Valuable 500, the global

not only as the regeneration of visual design, but also

movement empowering people with disabilities. We willthat of the corporate culture, and eventually supported

continue to proactively work on the development and

the Group’s globalization. In our “third foundation”

appointment of diverse talent, aiming to realize a great

15 | Global CEO Commitment

challenges to continue advancing.
I hope this report will become an opportunity to

We are also promoting activities to earn the empathy

Our intention to continue providing “driving excitement”

Bridgestone Group will confront and overcome thesethrough business and social contribution activities, we

the world moving ahead.”pursuits to ones based on co-creation and sustainability.

accelerate further value co-creation in the future.

activities in each region, staying close to local

As a global company, by responding to society’s

such as the Digital Garage in Rome, Italy, and the Mobility

and deepening interactions with empathy, we hope tocan challenge and grow together. We will continue to

Bridgestone 3.0 Journey 2022 Integrated Report

Invitation for co-creation toward therealization of a sustainable society
To accelerate our transformation, the Group will also
relentlessly continue to strengthen fundamental
initiatives, especially in six key themes as Management
Fundamentals for value creation: Compliance andFair Competition, Business Continuity (BCP) and Risk

Shuichi Ishibashi

Management, Human Rights and Labor Practices, Safety

Member of the Board

and Industrial Hygiene, Procurement, and Quality

Global CEO and Representative Executive Officer

and Customer Value. In advancing our transformation
following the “Bridgestone E8 Commitment,” weGlobal CEO Commitment | 16

Bridgestone E8 Commitment
Bridgestone E8 Commitment
Following the Group’s founding in 1931, and its “second foundation” in 1988 with the merger of Bridgestone and the Firestone
Tire & Rubber Company, the Group positioned 2020 as the first year of its “third foundation” Bridgestone 3.0 and establishedits new vision “Toward 2050, Bridgestone continues to provide social and customer value as a sustainable solutions
company.” To realize this vision, the Group has formulated a Mid-Long Term Business Strategy Framework with sustainability
at its core, and has been advancing initiatives. Based on the “strong” Bridgestone, capable of responding to the changes it
built these past two years through corporate transformation (CX), the “Bridgestone E8 Commitment” will serve as the axis todrive the Group’s management while earning the trust of future generations in accelerating its transformation.
The eight “E”s in the “Bridgestone E8 Commitment” embrace the Group’s Mission, the Bridgestone Essence, and DNA
cultivated over its 91-year history. They also are aligned with the Mid-Long Term Business Strategy and vision and indicativeof our future possibilities and evolution for value creation.

In 2022, the Bridgestone Group launched its “Bridgestone E8 Commitment” to realize its vision: “Toward 2050,

EnergyCommitted to the realization of a carbon neutral mobility society.

Bridgestone continues to provide social and customer value as a sustainable solutions company.” It includes eight

In addition to accelerating the introduction of renewable energy at its manufacturing sites, toward

Bridgestone-like values starting with the letter “E” (Energy, Ecology, Efficiency, Extension, Economy, Emotion, Ease, andcarbon neutrality by 2050, the Group is also supporting the adoption of EVs from the ground up by

Empowerment) that the Group, through Bridgestone-like “purpose” and “process,” will commit to creating together with

developing tires optimized for EVs and enhancing the EV charging networks by leveraging its retail

employees, society, partners, and customers to support realization of a sustainable society.

network. To realize carbon neutral mobility, the Group will accelerate its efforts to reduce CO2 emissions

Bridgestone’s approach to sustainability

Bridgestone’s journey of CSR and

Since its founding, the Bridgestone Group has expanded

sustainability activities

and evolved its business to meet the changing needs

In 2007, the Bridgestone Group established the 22 CSR

of society and continue supporting the mobility and

Focus Points as a Group-wide “common language” tolifestyles of individuals, guided by its Mission of “Serving

continue to fulfill its Mission and promote consistent CSRSociety with Superior Quality” which was established as

activities. Based on its belief that “CSR is at the heart ofits corporate motto in 1968 and remains unchanged. It ismanagement itself,” the Group built a foundation for its

based on founder Shojiro Ishibashi’s business philosophy

CSR activities by integrating the 22 issues that form theembodied in his words, “I am convinced that a simple

basis of its corporate activities, including environmental

profit-seeking business will never thrive, but a businessconservation, quality and safety, into its Mid-term

that contributes to its society and country will be foreverManagement Plan. Building on this foundation, the Group

profitable.” It is also in line with the Group’s current

established its Our Way to Serve , in 2017 as a compass

approach to sustainability.

to respond to society’s expectations of a global company

The Bridgestone Group believes that it is the Group’s roleand responsibility to anticipate changes in society, turnthem into opportunities, and contribute to the realizationof a sustainable society through its business and social
contribution activities.

and its commitment to contribute to realizing a better
future. By identifying Mobility, People and Environment
as the three Priority Areas, the Group reinforced its
activities through a “glocal” (global x local) approach with
regional leadership, while ensuring global consistency.
This approach continues to facilitate the identificationof key areas where it can leverage its strengths to forge
partnerships for value creation and transformation. Goingforward, the Group is evolving its efforts to the next stage
with the “Bridgestone E8 Commitment.”

throughout its value chain and in each of the “produce and sell,” “use,” and “renew” tires to raw materials
phases, such as providing products and solutions including Tirematics that support safe and efficient
fleet management to help customers reduce their CO2 emissions during the use stage of its tires.

EcologyCommitted to advancing sustainable tire technologies and solutions
that preserve the environment for future generations.

Toward its goal to use 100% sustainable materials by 2050, the Group is further promoting retread andrecycle business. In addition to this, seeking the potential of materials, the Group is accelerating its efforts,such as the development of material with high environmental performance and rubber suitable for recycling,
toward the realization of a circular economy and enhancement of resource productivity throughout its value
chain and in each of the “produce and sell,” “use,” and “renew” phases. The Group is also conducting forest
conservation activities, such as the ECOPIA's Forest Projects in Japan and other biodiversity conservation
activities around the world, to preserve a better environment for future generations.

Efficiency

Committed to maximizing productivity through the advancement ofmobility.

The Group is accelerating its efforts to maximize the efficiency and productivity of both its andcustomers’ operations, by supporting safe and efficient operations throughout its value chain,centered around Dan-Totsu Products and Dan-Totsu Solution such as fleet solutions that combine tires,
retread and maintenance service with digital tools.

ExtensionCommitted to nonstop mobility and innovation that keeps people
and the world moving ahead.

Through activities that encompass the entire value chain with a focus on Dan-Totsu Products and DanTotsu Solution, the Group ensures continuous innovation in technology and business models to keep
mobility and industry moving ahead. For example, in mining solutions, the Group supports day-to-day
operations at physically demanding mining sites by optimizing tire usage with its Dan-Totsu Products,
maintenance and data. It is also taking on challenging projects that support the dream of humankind
with mobility innovations, such as a space exploration mission.

17 | Bridgestone E8 Commitment

Bridgestone 3.0 Journey 2022 Integrated Report

Bridgestone E8 Commitment | 18

Global Leaders Roundtable on the Bridgestone E8 Commitment

Thoughts on the Bridgestone E8 Commitment toward accelerating transformation

EconomyCommitted to maximizing the economic value of mobility andbusiness operations.

The Group is promoting initiatives to optimize costs and maximize economic value forcustomers and its business throughout its value chain, with a focus on Dan-Totsu Products
and Dan-Totsu Solution. For example, in aviation solutions, the Group’s digital tire wear anddurability predictions provide greater accuracy in tire management and maintenance plans,
while also enhancing economic value by reducing wheel and tire inventories and improving
the efficiency of aircraft maintenance programs.

EmotionCommitted to inspiring excitement and spreading joy to the world of
mobility.

The Group continues to provide “Driving Excitement” through motorsports such as theSUPER GT car races, the Suzuka 8 Hours Endurance Race and the Indy. It contributes to thedevelopment of motorsports culture while also advancing and refining its technologies thatpush the limits of tire performance. Through its involvement in sporting goods such as bicycles

Participants (from left to right)

Masahiro Higashi

Member of the Board, Joint Global COO (In charge of Global OR/AC Business, Japan Business and BSCAP)

that support various challenges.

Paolo Ferrari

Joint Global COO (BSAM, BSEMIA) and Executive Officer, Global CSO (Global Chief Business Solutions Officer),

Ease

Laurent Dartoux
Yoshikazu Shida
Scott Trevor Davis, Ph.D.

Vice President and Senior Officer, BSEMIA Management Board Chair, CEO and President

and golf balls, the Group continues to inspire excitement, spread joy and promote initiatives

Committed to bringing comfort and peace of mind to mobility life.

Bridgestone’s fundamental principle is “tires carry life.” In addition to providing highperformance and high-quality products such as passenger car tires, aircraft tires and seismic
isolation bearings, the Group also addresses social issues such as safety education and traffic
safety activities to support the mobility and lifestyles of individuals.

Empowerment

Committed to contributing to a society that ensures
accessibility and dignity for all.

The Group is also focusing on initiatives to solve various social issues by staying close to local
communities and people’s lives. These efforts include promoting DE&I and improving accessibility.
In its support of para-athletes, the Group developed rubber soles for prosthetic running blades andtires for wheelchairs, so that all athletes can enjoy sports, regardless of their challenges. In the softrobotics business, the Group is taking on the challenge of supporting the lives of individuals throughthe power of rubber, in light of the labor shortage against the backdrop of declining birthrates andaging populations and the need for non-contact interactions and automation due to the COVID-19
pandemic.

and Representative Executive Officer
BSAM Member of the Board, CEO and President
Vice President and Senior Officer, Seconded to Bridgestone Asia Pacific Pte. Ltd., BSCAP Member of the Board, CEO
Independent Director, Chairperson of the Board of Directors, Member of the Nominating Committee,
Member of the Compensation Committee, Chairperson of the Governance Committee

The time is ripe for promoting

sustainability through business now
Dr. Scott Davis: In 2020, the Bridgestone Groupannounced its intention to become a sustainable solutions
company — that Bridgestone would intensify its efforts toco-create social value through its business, by partneringwith its stakeholders — and that it would create that value
not by thinking only about what can be done, but whatshould be done.

Scott Trevor Davis, Ph.D.

In March 2022, the Bridgestone Group announced the“Bridgestone E8 Commitment” (E8 ). That brings me to myfirst question, why now? Why is this the right time for E8 ?

dimensions — technology, climate, regulations, culture

its transformation toward a sustainable solutions company together with its 130,000 global employees. The Group also
believes it can realize and support a sustainable society by earning empathy from all of our stakeholders and co-creating
new values with society, partners and customers through the “Bridgestone E8 Commitment.”
More than ever, the Group will work with others to continue to face the challenges and possibilities of the evolving world,
for the sake of the Earth, which future generations have entrusted in our care.

For example, the price of renewable energy in Japanand many others. This is creating the need for us to

is too high. We need to innovate and promote new

move strategically and form new partnerships withvarious stakeholders that will enable us to work next togovernments and NGOs as plans are made to tackle thesecomplex problems. Social expectations are also advancing

and markets to drive progress. This will also enhance ourown competitiveness in the context of such rapid change.
Yoshikazu Shida: Due to the impact of COVID-19

play in 2023 that sets the rules for how corporations reportpandemic restrictions, climate change, and other eventson sustainability.

over the last two to three years, teammates in the BSCAP

Masahiro Higashi: In my view, awareness of sustainability

Bridgestone 3.0 Journey 2022 Integrated Reporttechnologies on our own, using the power of partnerships

quickly. For example, a new EU directive will come into

in Japan is still more abstract than compared to other19 | Bridgestone E8 Commitment

discussed in other parts of the world. We need to look
activities.

and transformation have been taking place on multiple

reinforcement of corporate strategy and transformation of corporate culture along this commitment, and accelerating

Japan that we also have to think about the changes being
for tangible ways to promote sustainability in day-to-day

Laurent Dartoux: In the BSEMIA region, disruption

The “Bridgestone E8 Commitment” will serve as Bridgestone-like eight vectors for its transformation. The Group will drive

regions such as Europe. I tell our teammates here in

region are beginning to see sustainability not only as amatter of strategic importance for business, but also as
an issue of personal resilience and quality of life, as well

Global Leaders Roundtable on the Bridgestone E8 Commitment | 20

as a social issue of survivability.

have achieved much during these past few years.

E8 — the latest step in a carefullyplanned process

For example, the dedicated efforts of BSCAP plant

Davis：I sometimes describe Bridgestone’s journey as

Despite recent hardships, together as a company weworkers have enabled the further enhancement of
supply chain management flexibility and agility acrossthe entire group, even during the turmoil of COVID-19
which impacted a range of factors including price andavailability of raw materials, ocean freight, labor supply

with the 22 CSR Focus Points , which was a focused, top-bottom-up initiative to communicate and share initiatives
and knowledge generated by the 22 CSR Focus Points
across regions. We want to build on those legacies.

Davis：What does E8 mean in the context of your regions

We’re always looking for ways to do better than we

down to broader stakeholder management. Investor
interest is increasing, stakeholder concerns are developing
and together they are very willing to listen to stories oflong-term sustainable value creation. Internally, our values
and actions on sustainability affect our ability to recruitand retain talent.
These and other factors all call for a commitment thatallows us to accelerate our cultural transformation tostay ahead of the disruption taking place in our businessenvironment. We often use the Japanese word Dan-

Totsu to express our ambition to be the best, to serve
society with superior quality. Well, it’s not our goal to be

Dan-Totsu in sustainability as another area of concern. I
strongly believe that we need to be sustainable in order tobe Dan-Totsu .

have in the past, so that we can provide more value toour customers and society. That’s what the word Dan-

increasingly more relevant.
The second is a formal, structured system for getting

Masahiro Higashi

constant feedback from our team. This reaches thebroader population about where they are in their journeyof awareness, understanding, engaging with, andeach region throughout Bridgestone has its own way ofcontributing to E8 .

understanding what is required to contribute to their own

Dartoux：The E8 rollout is also being integrated into therespective communities.

business planning process through committee systems
between the SBUs globally. It is also planned to be used as

Higashi： I think our teammates are finding E8 very
appropriate given where Bridgestone is coming from in its

key criteria for our TQM (Total Quality Management) andsustainability journey.

Bridgestone Group Awards, the highest level of recognition

for example, that BSEMIA was awarded platinum status

At Bridgestone in Japan, we used a video message inby EcoVadis in 2021, which places us in the top 1% of

our initial rollout phase to introduce E8 and explain

business itself from the start.

sustainable companies. This is a significant achievement

what it means. The response has been very positive

but it is not our endpoint. E8 now allows us to jump to theand encouraging. Many are interpreting E8 as a clearer

next level based on the foundational work that we havearticulation of our strategic commitment to sustainability,

done in the last several years.

which we have been talking about in our way of managing

Totsu means for us. It might be helpful to understand,

Shida：The 22 CSR Focus Points and Our Way to Servecreated a legacy that’s deeply linked to Bridgestone’s

in the company. This will help to embed E8 into the actual

Davis：So you’re using the exact same deliberation andcommunication processes for E8 that you have used for all

and operating the business for a long time. People see E8
as our next step.

fostering a relationship of trust with local communities.
For instance, in Indonesia, a region susceptible to a rangeof natural disasters, our teammates have formed their

your other important initiatives. You’re further embedding
sustainability into Bridgestone’s business, organizationand culture, not bolting it on as some external component.
Shida：My area, the Asian Pacific region, is extremely diverse
when it comes to geography, culture, language and religion

pride and contributed significantly as a foundation for— but what connects us all is a commitment to serving andcontributing to the society as responsible citizens. It’s an

Implementation — inclusivity andethos cultivated from the bottom up, especially during Our

scalability

Way to Serve , and now closely tied to Empowerment in E8.

serve a critical role in their community in times of urgent

Davis：What you are saying is that E8 is closely aligned toIt’s helped to build trust with our customers and partners

need. Our people are proud and active members of theirglobal strategy but at the same time, very locally aligned.

communities. Just one example. There was one day whenThat, to use a term often used at Bridgestone, it’s glocal

their pride and higher retention.

(global x local). E8 gives you eight different vectors to work

Bridgestone’s growth as a global company began in theown voluntary emergency response and rescue teams thata natural disaster occurred in the middle of annual salarynegotiation. The phones of the labor representatives

with. This comprehensiveness means it’s carefully designed

suddenly all started ringing. They checked their phones,

to push you out of your comfort zone and into yourstood up and told the management representatives,

innovation zone.

“We’re members of the company emergency response
volunteer team. We’ve just received a call. Sorry, but we’ll
have to postpone salary negotiation to another day.” Theteammates walked out of their own pay negotiations sothey could help the people in their community in theirtime of need.

cultural, organizational and business achievements ofpast initiatives. Co-creating social value is already deeply
rooted in the BSCAP region. Like BSCAP, I have seen that21 | Global Leaders Roundtable on the Bridgestone E8 Commitment

and boost teammates’ engagement, leading to nurturing

Asia-Pacific region in the 1960s and we have a deeply rooted

How is Bridgestone communicating E8 to build awarenessand engagement internally and to deepen and acceleratebusiness partnerships for co-creation?
Ferrari：Sustainability, like digital innovation and DE&I,
must be embedded in the business for it to have real

Davis：That’s a great illustration of how E8 rests upon the

Paolo Ferrari

so there’s a cascading effort whereby the E8 becomesbusiness and operations. In 2017, Our Way to Serve was a

improve the way we do business.

Paolo Ferrari：From a BSAM point of view, it really comeswith their teams at each SBU through town hall meetings,

Dartoux：Yes, I agree and I think that we are ready for the

down initiative to embed ESG as a core part of our global

today?

members, as the leaders in their own areas, do the sameof the learning process.

This has led to greater feelings of confidence and pridesystematically and comprehensively rethink and furtherof the Global EXCO. After this phase, all the Global EXCO

previous ones. It builds upon them and is a necessary partand demand for our goods and services.

encouraging them to do better. Now is a prime time to

we asked, “Where’s the cultural element? Where’s the
DE&I element?” This development was possible because

climbing a flight of stairs. Each step doesn’t replacenext step in our sustainability journey. We started in 2007

among our teammates, both freeing them up andlast year. For instance, the initial E8 plan did not include

Empowerment . We added that toward the end, because

Bridgestone 3.0 Journey 2022 Integrated Reportmeaning. To do that, we use two tried-and-true methodsof communication. The first is exploratory and more
personal. In the Global Executive Committee (Global EXCO),
we share documents and then engage in a sort of a Q&A
and debate. This is actually how we developed E8 over the

Yoshikazu Shida

Global Leaders Roundtable on the Bridgestone E8 Commitment | 22

presence here. When we shared the E8 video with ouras our teammates see that E8 is a great new commitment

teammates, many said that they are proud and sometimes

but that our company is well underway in execution. The

surprised by our accomplishments as a global company. It

combination of a proven playbook for cascading, manygave them the inspiration to say, “We can do even more,

proof points showing that E8 is already alive, and theeven better.” The trust our teammates have built at theactual E8 framework as a wonderful new pivot of ourcommunity level will be essential for co-creating value

sustainability commitment make us feel very comfortablethrough E8 going forward. We’re looking to continue thatabout the success in deploying this new framework and in

legacy by linking such efforts to Empowerment .

capturing both awareness and engagement around it from

Higashi：We have been holding town hall meetings acrossJapan to talk eye-to-eye with teammates about E8 so thatthey can digest it.
As Bridgestone in Japan has a long history of monozukuri ,the culture of making things with diligence and a dedication
to quality, our front-line teammates bring a strong senseof responsibility and rigor to their work. They require a
concrete, practical understanding when implementing

all our teammates. This will therefore truly accelerate our
execution towards our 2040 and 2050 goals and towards
our performance in general.
Dartoux：Many of the emerging OEMs in the all-electric
space, for example, come with a light-asset model. Well, we
have tires, fleet management solutions and, increasingly, a
network of retail stores. This means we can offer a catalog
of services to which they otherwise lack access.

principles or concepts. So their understanding is crucial

We have also recently been thinking about ENLITEN as anfor any initiative, but once they have it, they can drive

end-to-end business model. It includes raw material supply,

innovative changes on the factory floor, which leads tomaterial circularity — the percentage of recycled andinnovation in Japan as whole. Thanks to these meetings,

renewable material in the tire, for example — and a series

our teammates are really getting on board with E8 . Theyof other dimensions that we can link to E8 . In effect, E8 is a

are now having small-group discussions about E8 andcatalyst for us to work more holistically to provide value andsustainability at the level of day-to-day operations like how

to get the agenda done faster. It allows us and our partners

to link E8 to their PDCA cycle.

to think more broadly in terms of all the eight dimensions

Davis：The positive response of Bridgestone people

at the Genba of manufacturing is important because
manufacturing is a key defining strength of the company.
The Genba has accepted the challenge of the E8 and areusing it to promote sustainability as another dimension ofthat we could impact. E8 enhances competitivenessby enabling us to create value out of our resources andpartnerships within subjectively distinct contexts such as
regions and industries because it includes both cultural aswell as business dimensions.

quality in production.

Partnerships on long-term perspectives

companies is cultural alignment. They will open their

Davis：What you are saying is that E8 is designed topromote the sharing of the existing knowledge currently
embedded within the regional and business contexts acrossthe group globally. It also enables Bridgestone to promoteforward-looking partnerships as a “platformer for creating
business solutions,” not simply as a platform of existingis a clear and well-articulated commitment to sustainability.
So instead of just talking about when the next tire iscoming, all of a sudden, we are also talking about: How can
we work together on end-of-life tires (ELT)? How will we

E8 gives us the platform that enables long-term andinnovative collaboration with partners. E8 allows us to say:Higashi：Many of our partners have expressed greatinterest in E8 . Initial discussions with partners in the mining“Yes, we play in the Champions League for transformationindustry have been especially positive. Mining companies

and innovation, just like you do. Let's talk.”

are very keenly aware of sustainability issues and consider
competence in this area to be a key factor when choosing
partners.

Davis：Would you agree that the increasing awareness ofsustainability has made external and internal stakeholders
more willing to look at business over the longer term? That
performance is not just quarter by quarter, but that businessE8 succinctly communicates our corporate posture, thebehavior we expect as a corporation. It also clearly defines
the value we want to co-create through our partnerships.
Co-creating value in accordance with E8 means thatshould also be looking ahead?
Ferrari：I think so. ELT is a great example. Investment in ELT
is difficult to justify because the technologies are long-term

together with our partners, we embed sustainability

and still relatively unknown, and the short-term paybacks

throughout the strategy, create positive and innovative

are hard to see. There are also no regulations yet thatpartnerships that create new sources of sustainable

allow us to quantify the risk of not investing. But we gorevenue, which in turn allows us to invest in further
innovation to increase our capability for sustainable value
creation. This process is now supported by the Bridgestone
Innovation Park designed on the concept of being an

beyond that and think: Is this good for society? Is this goodfor the industry based on E8 ? We're moving towards ELT
technologies because it has a huge sustainability impact,
and all our stakeholders are aligned.

“open space for collaboration” that we have just openedin Kodaira, Tokyo. Adding a tangible asset like this shows
and organized to do it. It’s crucial to tangibly show our

Shida：Long-term value co-creation is very important at the
local, personal level as well. In Indonesia, Bridgestone has
been sponsoring a mechanical and electrical engineeringcommitment because Bridgestone’s solutions businessschool since 1981. This came out of a response to meet amodel hinges on the idea of working together.

social need. Roughly 70% of high school students there

Ferrari：BSAM has been engaging in top-to-top discussions

Ferrari：Over the last few years at BSAM, we articulated

strategic journey up to us if we can show them that our E8

co-invest in transformational technology for recycling?

solutions.

stakeholders that we are serious about value co-creation

Synergies of glocal knowledge sharing

with our key business partners, and E8 is having the same
effect here. The starting point of co-creating with leadingwere unemployed, so the government asked us to help train

a North Star as a way of capturing and packaging theimportant global strategic frameworks that our Global
CEO, with the Global EXCO support, created and unveiled
to the markets in various stages since 2020. This included
our new vision as a sustainable solutions company both inits sustainability and mobility angles, our A.B.C. Businessmodel, while reinforcing our foundations such as theBridgestone Essence. We have prepared and deployeda playbook to cascade this successfully throughout theorganization with tools, processes, town halls, individual
meetings and surveys to personalize and monitor
awareness and engagement.
In this context, while E8 is revolutionary, many of theinitiatives in place since the last two years already connect

Laurent Dartoux

well with many of the E s of E8 and this is an important thing

23 | Global Leaders Roundtable on the Bridgestone E8 Commitment

Bridgestone 3.0 Journey 2022 Integrated Report

Global Leaders Roundtable on the Bridgestone E8 Commitment | 24them for the job market. The school accepts 48 students
every two years. Tuition is free and accommodations
and meals are provided. To date, about 800 people
have graduated, with roughly half going on to work for

Above all the E8 is a commitment —a challenge

Bridgestone, and the remainder at other companies.

Davis：You have all spoken about many critically important

One of the graduates from that school is now working with

this: as a solutions business, it is essential to communicate

us on E8 , and he is very excited to help us drive E8 forward.
He knows our background and culture, so he knows how tocommunicate in ways that are relevant for our monozukuri(making things) culture. This is critical because, in the caseof BSCAP, 65% of our teammates are front-line workers. We
are equipping people with valuable skills not only to build

things today, but one theme underlies them all and it’swhat you have achieved and what you can do. The word“commitment” in the name E8 Commitment speaks
volumes. That you can’t stop at just an expression ofvalues. If you fail to say what you’re good at, and what
you intend to do, potential partners won’t know that theyneed you. With E8 you are both recognizing and sharing

their careers, but also to develop solutions that benefit their

your achievements, and planning a path forward.

respective communities in the long term. We also have

Higashi：E8 is unique. I firmly believe that only

community skill programs in Australia and other areas.

Bridgestone could express a corporate commitment tosustainability in this way. It is the culmination of a longand careful process of discussion and alignment at the

New conversations for innovation andsolutions

Davis：It seems that E8 gives you a language that you can
use to speak eye-to-eye with each of your constituents,from companies operating globally to individuals who

local, regional and global levels. It builds on best practices
and synergies created and shared within and across eachof these levels, and it represents a challenge for the future,

Value Creation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  27–28

but one that Bridgestone is fully capable of realizing if it

Mid–Long Term Business Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

uses and communicates its strengths for collaborative
innovation.

want to work and contribute to their families andWe have a reputation for being experts in making andcommunities.

selling tires. We can say that it’s in our DNA. But in the

Dartoux：Reframing existing business and products within
the context of E8 will be the challenge, but it’s going to

unlock value. ENLITEN, which I mentioned previously, is
one such example.
The agenda on sustainability is so huge that we haveto engage with partners broadly, sometimes even withour competitors. In BSEMIA, we're working with twocompanies, BB&G and Versalis (ENI Group), to build a
recycling player that doesn’t exist in the market today. We
need to be more open to these kinds of partnerships.

Realization of
Mid-Long TermBusiness Strategy with
Sustainability at the CoreMid Term Business Plan (2021–2023):“Aggressive Approach” and“Challenging” Spirit . . . . . . . . . . 30–37
Financial Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

emerging circular economy, that alone is not enough. To

Message from the Global CFO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

continue to serve society with superior quality, we must

Core Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40–42

join with others in solving the issues challenging ourindustry and facing our stakeholders both globally andlocally.
Our definition of quality is expanding: from products, toservices, and now to sustainable mobility solutions. With
its comprehensiveness, inclusiveness, and scalability,
I think E8 will serve a pivotal role in the next stage ofBridgestone’s journey to further enhance our ability to

Growth Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43–46
Exploratory Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47–52
Progress toward Realizing the Sustainability
Business Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53–57
Innovation & DX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58–62
Topic: Bridgestone Design.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63–64

realize even higher quality through deeper transformation,

Intellectual Property Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65–66

To innovate with us, our partners, both internal andcloser user perspective, and more active and collaborative

Human Resources Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  67–70

external, must be able to understand what we stand forpartnership into the future.

and what we can do. E8 does this because it expresses
both our values and our plans and actions as a business.
It starts the conversation with the statement that we are
unique as a business and valuable as a long-term partner.

25 | Global Leaders Roundtable on the Bridgestone E8 Commitment

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Value Creation Process

Mission: Serving Society with Superior Quality
Bridgestone 3.0 / Third Foundation

Vision: 2050 Bridgestone continues to provide social value and customer value, as a sustainable solutions company

Input

Output / Outcome

Corporate Commitment
Bridgestone E8 Commitment(2021 results)

2,675.4 billion JPY
Strategic resources 150 billion JPY

Mid Term Business Plan (2021-2023)

Total equity

Financial capital

Capital expenditure
Manufactured capital

R&D expenses

FY2023 Revenue

Business portfolio

20% level
Adjusted operating proﬁt margin 13% level
ROIC 10% level
ROE 12% level% of revenue from solutions businessCore / Growth / Exploratory business

262 billion JPY

3,300 billion JPY level

P.33

95.5 billion JPYIntellectual capital

Number of employees
Human capital

135,636

Mid-long term environmental targets

Business platform

Milestone 2030

Bridgestone T&DPaaS

Social and relationshipcapitalin more than

50% reduction in CO emissions
from 2011's level
40% rate of materials using recycled and renewable resources

Axis to drive management while earning
the trust of future generations

Dan-Totsu Network with operation

150 countries and regions2

P.17‒192050

Amount of raw materials used

4,611 thousand tonnes

Natural capital

42,726 thousand GJ

Sustainability Business Model

P.71‒79

P.53

Governance and Management Fundamentals for Value Creation
Business Continuity (BCP), Risk Management

Human Rights, Labor Practices

Social issues and momentum of transformation

27 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Carbon neutrality
100% sustainable materials

Build trust to propagate value co-creation

Business model

Total energy consumption

Compliance, Fair Competition(Scope 1, 2)

Bridgestone 3.0 Journey 2022 Integrated ReportP.80‒99

Safety, Industrial Hygiene

Procurement

Quality and Customer Value

Changes in environment surrounding Bridgestone and risks and opportunities

P.29, 89‒90

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 28

Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Mid-Long Term Business Strategy

Mid Term Business Plan (2021―2023): “Aggressive Approach” and “Challenging” Spirit

Placing sustainability at the core of management and business, the Bridgestone Group is promoting the execution

The Group’s Mid Term Business Plan, to be implemented over the three-year period from 2021 to 2023, clarifies

of Mid-Long Term Business Strategy to realize its vision of “Toward 2050, Bridgestone continues to provide social

specific goals and actions in each business based on its Mid-Long Term Business Strategy. With a view to 2030,

and customer value as a sustainable solutions company.” When constructing its Mid-Long Term Business Strategy,

it will implement the Mid Term Business Plan toward 2023 with an “aggressive approach” and “challenging”

the Group carefully assessed the internal and external business environment — considering social trends,

spirit, evolving into a sustainable solutions company. It will also respond to various environmental changes

transformations of the mobility and tire industry structures — to determine the impact of each on the Group. The

while developing its business portfolio in line with changing social and customer needs to evolve into a “strong”

Group then formulated strategies to transform change into opportunity. The changes the Group considered, andBridgestone capable of responding to changes.

its response to each, include:

Mid Term Business Plan (2021–2023) & Targets toward 2030

Changes in the external and social environment•

Unprecedented changes → Introduce a more agile change management system.

•

Geopolitical risk → Promote “glocal (global x local)” management.

•

Climate change → Place sustainability at the core of management.

•

Technology innovation and DX → Co-creation, innovation and promotion of Bridgestone’s DX.

Changes in the mobility industry structure•

Acceleration of MaaS and CASE, especially acceleration of Electric which means adaptation of EVs → Reinforce
Dan-Totsu product strategy, considering sustainability and the evolution of mobility; expand tire-centric
solutions, retail & service and mobility solutions.

•

Emerging original equipment manufacturers (OEMs) and horizontal integration of OEM → Establish new
operational and organizational structures to adapt to the changes.

Changes in the tire industry•

Changes in the tire industry structure including emerging competitors.

Mid-Long Term Business Strategy Framework

29 | Realization of Mid-Long Term Business Strategy with Sustainability at the CoreMid Term Business Plan (2021–2023) progress update – 2021 and 2022 plan

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 30

Toward achieving the Mid Term Business Plan

strategy, expanding its value to technology, productTo achieve the Mid Term Business Plan, the Group is

continue to conduct strategic investment and study theworking on it based on three axes: “tackle past negative
legacies without delay” in light of 2015–2019 when
profits were on a declining trend, “focus on execution
and delivering results” responding promptly to changes
in the business environment, and “lay the foundation for
future growth” with 2030 as its milestone.
Regarding past legacies, the Group is addressing its
declining profits and working on rebuilding its earning
power. In 2021, from a mid-long term perspective, theGroup restructured its manufacturing footprint and thebusiness portfolio in all its business domains, including
the tire, diversified products and internal manufacturingbusinesses. This helps reduce fixed costs and promote
other expense and cost structure reforms. In addition,
the Group set ROIC as the critical management index,
and introduced the process to evaluate earning
power by region and business. This enables the Groupto strengthen its efforts while thoroughly tracking

and business model. In addition, the Group will
global manufacturing footprint from a mid-long term
perspective. While keeping “local production for local

In the growth business, the Group will continue strategic
growth investments in each region for the global
expansion of solutions. It will also expand the solutions
business, including enhancing mobility solutions, throughM&A and by strengthening the retail & service businessbased in the Group’s global retail network (see pages
43–46).
With regard to the exploratory business, the Group
promotes exploring recycle, soft-robotics and guayule
businesses. It will also continue technological andbusiness model explorations toward commercializationand support the mobility and the movement of people

The Group will continue to drive DX as digital is essential

strengthened price and cost management by quickly
responding to changes in the business environment
including lower demand for original equipment (OE) tires
due to the impact of semiconductor shortages starting in
the third quarter; raw material, ocean freight and othercost inflation; and labor shortages in North America. In
2022, the Group will continue to promote supply chain
management in response to changes and maximize
supply and sales opportunities, pursuing “flexible agile
management” with an “aggressive approach” and a“challenging” spirit.
The Group is laying the foundation for its future growth

reinforce the recruitment and development of digitalin the Russia and Africa tire

talent. It will accelerate actions to realize DX thatbusinesses. The remaining

connects throughout the entire value chain, global

deficit business, the truck andactivities and operations, as the evolution of the existing
Bridgestone’s DX which drives DX in each area such as
R&D, manufacturing and solutions with the combinationof “real” and “digital” (see pages 58–62).

Group is working on building the ENLITEN business1

India, will also be profit-making
in 2022. In addition, as thediversified products businessbecame profitable as a result

Group’s management and business, it is developingof restructuring of the businessinitiatives aligned with its “Bridgestone E8 Commitment”

portfolio, the Group will achieve

as the axis to drive management while earning the

profitability in all businesses

trust of future generations. The Group will tie in efforts
for achieving carbon neutrality and a circular economy
with its business model and aim to realize its uniquechain and global initiatives, including reducing Scope 31

car OE fitment starting from Europe. From 2022, thebus tire business in China andIn terms of sustainability, which is at the core of the

In its core business, the Group is expanding ENLITEN, atechnology optimized for EVs and promoting passenger

stepped up to “Next” withthe realization of profitability

Sustainability Business Model. To realize carbon

the development of ENLITEN as the innovative tire

In 2021, two businesses

for the realization of its Mid Term Business Plan andbased on the ”strong” Bridgestone it has built so far.

new premium for the EV era. The Group has strengthened“Developing.”

ensures global optimization (see pages 40–42).

In terms of immediate issues, the Group is focusing

the world, the Group aggressively executed sales andto business characteristics and maturity of mobility in each region: “Main,” “Next,” “Strategic” andthe Group will build a manufacturing footprint thatand objects (see pages 47–52).

2021, amid signs of recovery of demand throughout

In implementing its Mid Term Business Plan (2021–2023), the Group defined four categories according

sales” to some extent in Europe and the United States,

investments and evaluating returns (see page 35).

on execution and delivering results. In the first half of● Progress of four categories for execution

and continue its transformation
to a “strong” Bridgestone aheadof schedule.

neutrality, the Group will continue to strengthen its valueemissions, by converting to 100% renewable energybased electricity at all BSEMIA Europe locations. It isalso contributing to a circular economy by developing
the recycle business and growing the ENLITEN businessstrategy (see pages 53–57).

Scope 3 covers CO2 emissions from raw material procurement, distribution, customers’ use, disposal, and recycling lifecycle stages.

31 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 32

● Targeting growth with a new businessportfolio and management structure
The Group is building a new business portfolio

the hydraulic, high performance hose business, andaccelerate efforts toward mid-long term growth
and the creation of social and customer value.

to promote future growth. The tire business

Adding the diversified products business to fourcontinues to be its core business in the future.

businesses, the Group is moving toward a five

The solutions business will be categorized intobusinesses portfolio and aiming for the early

three businesses — tire-centric solutions, retailcommercialization of exploratory business.

& service and mobility solutions — in accordancewith its business characteristics. This will leadthe synergy between the core business and thegrowth business which amplifies the value in eachbusiness.

In line with its new portfolio, the Group will alsoestablish a new management structure. Since 2020,
the Group has driven “glocal” management that
executes a local strategy suitable for each business/region based on the global strategy, securing group

The diversified products business has continued to

global optimization, and has been able to build a

support the mobility and movement of people andstrong management structure over the past two

objects and lifestyles of individuals, responding toyears. To realize a new business portfolio, thethe needs of each era and society. After executing

Group will build a management structure capablebusiness and manufacturing footprint restructuringof responding to changes with flexibility and agility

in 2022, the Group will maximize the coreby ascertaining the characteristics of each businesscompetencies of its continued business such as

based on the “glocal” management structure.

Rebuilding earning power● Overview of the performance for 2021

a substantial increase in revenue over the previous

As the management indices of its Mid Term Business
Plan (2021–2023), the Bridgestone Group aims toyear. In 2022, the Group will continue sales with an“aggressive approach,” aiming to reach revenue of
3,650 billion JPY. On the profit front, both adjusted

achieve revenue level of the 3,300 billion JPY and
ROIC as the critical management index of 10% in 2023.
To achieve the plan, the Group is rebuilding earning
power and investing in strategic growth. Specifically, it
is reforming its cost and expense structure, reinforcing
its premium business strategy, and expanding its
solutions business under the banner of evolution into
a “strong” Bridgestone.

operating profit ratio and ROE (return on equity)achieved the 2022 goal ahead of schedule. ROIC,
which indicates earning power, was 9.0%, well above
the plan for 2021, and is projected to exceed the2021 level in 2022 as well, thus achieving the goal ofrebuilding earning power. The diversified products
business returned to a profit in 2021 on the continued
business basis, together with the effects of measures

In 2021, the Group’s revenue reached approximately
3,246 billion JPY with a gross profit margin of 40.6%,
achieving the 2022 goal ahead of schedule. On theto rebuild earning power, such as the decision totransfer the anti-vibration rubber and the chemical
products solutions businesses.

revenue front, global tire sales increased significantly
centered around the premium segment, resulting in
Evolution of revenue and gross proﬁt (Excluding M&A impact)
Revenue*$.$$$&

3,507!-.$$$&

3,246

3,010

!$.$$$&

2,805

Gross proﬁt[%],$.$$$&

40% level

39.3%

36.7%

Diversiﬁed business
Tire business

40% level

38.1%

37.8%

+-.$$$&

3,300 level

3,100 level40.6%,-.$$$& 39.5%

New business portfolio: “Five business” + exploratory business

3,650

3,790

[B yen]“mastering forming hybrid polymer” technology of-.$$$&

Solutions business

$&

2015

2015

JPN account. standards

2019

2020*

2019

2020

2021 2021*

2022 2022

Plan Result2021 Plan Projection
2021
21 RT422OB
見込 2022

International accounting standards (IFRS)

2023

Plan
2023

Plan: Mid Term Business Plan (2021-2023)*Excluding U.S. building products business, Automotive anti-vibration rubber business and chemical products solutions business

Adj. Operating Proﬁt / Net Proﬁt / OPEX % / ROIC / ROE (Excluding M&A impact)

Adj. Operating
Proﬁt [B JPY]

14.7%
517
13.6%

Adj. Operating
Proﬁt ratio [%]Proﬁt fromcontinuing
operations[B JPY]

394
12.1%
343
9.8%
207
7.7%

284
7.4%
240

ROIC

OPEX %

ROE
ROE

260

5.1%

8.6%

360 level
11% level

425
11.6%

450 level
13% level

9.2%
290

10%level
290 level

9.0%
308
8% level

6.3%
150

220 level

-20

2015

2019

2020*

25.8%

28.0%

30.3%

10.0%

-0.9%

13.3％

JPN account. standards

2021 2021

2022

2022

2023

29.5% 28.4%

29%level 27.6%

27%level

Plan

Result

6.8% 12.9%

Plan

Projection

9% level 11.3%

Plan

12% level

International accounting standards（IFRS）

Plan: Mid Term Business Plan (2021-2023)* Excluding U.S. building products business, Automotive anti-vibration rubber business and chemical products solutions business

33 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 34

Strategic growth investments

Expense and cost structure reformation
The Bridgestone Group is reforming its expense andexpense management. Over the past two years fromThe Group plans to invest 700 billion JPY in strategic

In the tire business, in addition to investment incost structure with strict expense management from a2020 to 2021, the Group reduced fixed costs by 37

resources by 2023 to evolve into a “strong”

production capacity to expand premium products in

ROIC improvement point of view.

billion JPY and variable costs by 9.7 billion JPY and

Bridgestone with an “aggressive approach” andAsia, Japan and South America, the Group has begun

accomplished reduction more than planned.

“challenging” spirit. This includes investments of 350

to invest in the expansion of truck and bus tires inbillion JPY each in strategic investments and expenses

South America and Asia.The Group is supporting sales

and in M&A, corporate venture capital (CVC), strategicin North America with the supply from South America

partnership, and other co-creation activities. It further

in the Americas and global sales with the supply fromstrengthens its core businesses while balancing

Asia and Japan. It will strive for global optimization

strategic growth investments for expansion of growth

while maintaining local production for local sales andbusinesses and in exploratory business, and skillfullybuild a supply chain that can respond flexibly andscrutinizes and invests in business opportunities.

agilely to changes in the business environment. In

The Group is driving further efficiency improvement
and optimization for all regions and all business

The Group will continue further structure reformation

areas through cost improvement in raw materials andand improvements, as well as reallocation to strategic

logistics, strict selection of investments and thoroughresources.

the Group’s diversified business in the United States,
it is increasing the capacity of a plant that produces● 2021 results of strategic resource

air springs for EVs to address the accelerating shift to

deployment

In 2021, the Group strengthened the premiumbusiness strategy in its core business, while executing
strategic growth investments to support the
expansion of its solutions business. As a result, theGroup invested approximately 100 billion JPY forEVs. In the solutions business, the Group is expanding
its business structure through M&A and strategic
investments in tire-centric solutions, retail & service
and mobility solutions businesses, mainly in Europe
and the United States.

strategic investments and expenses andapproximately 50 billion JPY for M&A and strategic
partnership.
● Manufacturing footprint and businessportfolio restructuring

The Group has been examining its approximately 160
manufacturing sites and executing manufacturing
footprint and business portfolio restructuring, taking
account of the sustainable growth of each business. In

2021, the Group executed restructuring of tire plants/
internal manufacturing footprint and the diversified
products business and announced restructuring of
50 manufacturing sites. The Group will continue
examination from a mid-long term perspective acrossall its businesses.

Strategic growth investments at-a-glance
Solutions Business

Solutions Business

Acquisition of Azuga Holdings Inc.

WFS Enhancement of service in Europe and global(Fleet management solutions provider, U.S.)(Digital solution provider, Europe)

Acquisition of Arvento Mobile Systems
Systems.A.Ş
A.Ş

Strategic investment in Wrench
Tire Business(Digital ﬂeet solution provider, Turkey)(Agreed on acquisition by BRISA, Bridgestoneʼs Upgrading equipment at Shimonoseki plantafﬁliated company)（Tires for mining and construction vehicles)

Expansion of production capacity at Hikone,Tosu, Hofu and Tochigi plants(Mobile vehicle maintenance service provider, U.S.)

Strategic investment in Kodiak Robotics(Autonomous long-haul trucking technology
development, U.S.)(Premium passenger car tires)

Tire Business

Inauguration of new state-of-the-art Wet
Handling Track at proving ground in Italy(Contribution to development of premium tires
and sustainability through water recycle)

Diversiﬁed Products Business

Tire Business

Expansion of production capacity at
Chonburi plant, Thailand (Truck and Bus tires)

Expansion of production capacity at
Williamsburg plant（Air springs for EVs）
EV）

Solutions Business

Acquisition of Otraco International Pty Ltd（Mining vehicle tire solutions provider, Australia/ Chile/
South Africa)

Acquisition of iTrack solutions business fromTransense Technologies(Mining solutions provider, UK)※Acquiredin*AcquiredinJune,June,2020
2020

Tire Business

Expansion of production capacity
at Bahia plant, Brazil(Passenger cars premium tires)

Expansion of production capacity at
Santo Andre plant, Brazil(Truck and Bus tires)

35 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 36

Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Financial Strategy● Approach to strategic resource deployment

Co-creation with partners is indispensable forthe realization and expansion of the solutions
business and the exploratory business, which aims
for commercialization. The Group is accelerating
expansion of the growth business and realizationof the exploratory business through strategic

spirit. It plans to deploy strategic resources ofapproximately 150 billion JPY for M&A and strategic
partnership in 2022, considering investment in fivepriority areas: enhancement of mobility solutions,enhancement of retail & service, tire manufacturing
technology, new emerging player in the mobility
industry, and sustainability.

Reinforcing foundations for financial strategy
The Group is reinforcing the foundations for its

The financial strategy department at the Global

financial strategy to realize portfolio management.

Headquarters serves as the secretariat to oversee

To progress with an “aggressive approach” andglobal activities, while ROIC ambassadors work to

a “challenging” spirit, it is essential to build apromote understanding of ROIC among all employees

framework to support strategic decision-making,since it is a critical management index used toincluding financial evaluation and divestments forevaluate improvement activities in the Mid TermBusiness Plan (2021–2023). Currently, there arepartnerships with myriad partners, including

In addition, the Group plans investment of 150

each business portfolio.

government and academia, while promoting thebillion JPY in strategic investments and expenses

global expansion of mobility solutions through M&A

in 2022 to support further growth. The GroupIn January 2021, the Group established a Global

and other means. In addition, it is creating contacts

will continue to grow its businesses and execute

projects on a global basis, thus putting in place awith a wider range of partners, including start-ups,

strategic growth investments to realize a carbon

structure to appropriately evaluate the investment

and resources for strategic growth investments

neutral mobility society.

Controller function to manage individual investment

returns of each project. In 2021, the Group scrutinizeda total of 23 investments totaling approximately 230

with an “aggressive approach” and “challenging”

billion JPY. In addition, the establishment of the M&A
Steering Committee, led by the Global CEO and with

Strategic investment / Strategic expenses
Reinforcement of premium businessstrategy in tire business
Strategic growth investments for growthbusiness expansion

2021
ResultM&A / CVC / Strategic partnership
Accelerate business through strong co-creation
activities

2022
Plan

2021
ResultApprox.

Mobility solutions business• Retread strategy• Tire-related services• Subscription

Retail & service business

50B JPY

2022
Plan

150 B JPY

Approx.

5 priority investment areas• Dan-Totsu product strategy• Fleet solution• Manufacturing technology• Solution network• Expansion of production• B-innovation
capacity of premium product(digital product design
infrastructure)• Greening of manufacturing sites

Enhancement of mobility solutions
Enhancement of retail & service
Tire manufacturing technology

IT Infrastructure• Core IT infrastructure systems
update• Remote work infrastructure
reinforcement• IT security reinforcement

and make speedy decisions. As for capital investment,
a committee led by the Joint Global COO Masahiro
Higashi also has been established to strengthen

100B JPY Approx.150B JPY

Tire-centric solutions
business

as members, has made it possible to discuss andrigorously evaluate deals on a target-by-target basis

Approx.

Tire businesssenior executives from each business and region

New emerging player in mobility industry

decision-making. For the allocation of strategic
resources, thorough evaluations are conducted using
ROIC and other methods, and hurdle rates are set
that consider the capital costs and risks by businessand region. The Group is also strengthening theuse of internal carbon pricing and incorporating
sustainability factors into investment decisions,such as evaluations that consider CO2 emission costs
and reduction benefits. As a result of appropriate
investments and proper scrutiny and evaluation, ROIC
for 2021 improved to 9.0% from 5.1% in the previous
year.

80 ambassadors. In 2021, the first year of efforts
to increase awareness and understanding of ROIC,
the Group rolled out educational materials ande-learning for ambassadors and employees. The
Group has established ROIC trees at the divisional anddepartmental level to link ROIC to the daily activitiesof each individual at the workplace. It also promotes
efforts to incorporate ROIC into improvement and key
performance indicators (KPIs) on the front lines. Goingforward, the Group will develop awareness activities
that are more closely tailored to each workplace,such as training by job level and sharing of specificexamples of improvements according to the natureof work in each function. It will thus promote selfdirected improvement activities at each workplace
and aim to achieve the 10% ROIC level in 2023
targeted in the Mid Term Business Plan (2021–2023).
● Linking credit to sustainability

The Group promotes ongoing environmental,social and governance (ESG) initiatives throughthe introduction of sustainable finance, in whichinterest rate terms fluctuate based on sustainability
in the U.S. tire manufacturing industry to establish a● Driving activities to promote thecommitment line through a sustainability linked loan
and to utilize a scheme that reflects the Group’s ESG

dissemination of ROICThe Group uses ROIC to evaluate progress in rebuilding
earning power by portfolio. It also supports strategic
decision-making in line with the Mid Term Business
Plan (2021–2023) by allocating optimal management
resources and ensuring the appropriateness ofstrategic growth investments, all while considering
the cost of capital.

each division in Japan, for a total of approximately

performance. BSAM was one of the first companies

Sustainability• Enhancement of mobile van andretail service

approximately one or two ambassadors assigned torating in the commitment line fees and borrowing
costs. Furthermore, BSEMIA, in cooperation withfinancial institutions, has introduced a framework toprovide financial incentives to suppliers that obtainratings from EcoVadis, an international sustainability
research and rating organization. The initiative was
the first in the world of this nature and was awarded
the prestigious Treasury Today’s Adam Smith Awardfor the category Best Supply Chain Finance Solution.

37 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 38

Message from the Global CFO

Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Core Business
Flexible, agile and resilient management isrequired to overcome any future unexpected
events we may face.

Masuo Yoshimatsu
Senior Vice President andExecutive Officer
Global CFO (Global Chief
Financial Officer)

The core business (tire business) is the foundation of the Bridgestone Group’s entire business strategy.
The Group is working on rebuilding earning power through strengthening premium business strategy andreformation of expense and cost structure throughout its “end-to-end” value-chain and driving business quality
improvement.

In February 2021, the Bridgestone Group announced its

wide penetration activities using the ROIC tree and

Mid Term Business Plan for three years from 2021 to 2023.

appropriate scrutiny and evaluation of investments. We

By activating this plan, we are vigorously pushing forward

will continue to invest based on global optimization with

with the company’s transformation into a sustainable

our “aggressive approach” toward the execution of thesolutions company with an “aggressive approach” and700 billion JPY strategic resources (from 2021 to 2023) set“challenging” spirit.

forth in our Mid Term Business Plan (2021–2023).

In 2021, we focused on rebuilding earning power andOur basic policy regarding capital allocation is to secure

execution of our premium business strategy, etc. As athe internal reserves necessary “to rebuild earning power

result, we achieved a significant increase in revenue

in our core business,” “for strategic growth investments

and profit, and net income from continuing operations

to expand our solutions business as growth businesses,”

reversed the first loss in 69 years recorded in 2020 toand “for strategic growth investments into our

profit and achieved a record net income for the first time

exploratory business,” while maintaining an appropriate

in seven years. We attained a strong start, achieving thefinancial position and conducting shareholder returns.

2022 targets of the Mid Term Business Plan (2021–2023)

With respect to shareholder returns, we strive to achieve

for revenue, adjusted operating profit, adjusted operating

stable and continuous increase of dividend payment

In the first half of 2021, when the global demand

profit margin, as well as ROE and ROIC a year ahead ofamount by sustainably enhancing our corporate value,schedule.

through a consolidated payout ratio of 40%. In addition,

was recovering mainly in the United States

Since I assumed the role of Global CFO in September 2021,
the role has been strengthened and enhanced to executethe Mid Term Business Plan (2021–2023) more reliably

in February 2022, we decided to acquire Treasury Stock of
100 billion JPY (up to) as an agile capital management for
improving our capital efficiency.

Strengthening the premium business strategy● Flexible and agile management: Response

promptly to changes in the businessenvironment

The Bridgestone Group is implementing
flexible and agile management focusing on
the supply chain that maximizes supply andsales opportunities globally by responding withflexibility and agility to changes in the businessenvironment and tire demand.

and Europe, the Group executed sales with an“aggressive approach” to capture the demand
recovery and supported global sales with supply
from Japan and Asia, while maximizing the
local manufacturing capacity and keeping “local

In the process of realizing our vision, I believe it iscorporate value. In the process, we have established an

important to accelerate the transformation of our businessextended Global CFO role that consolidates procurement,

model and focus on execution and delivering results. It

the Group minimized the impact of original

IT infrastructure, SCM, and business planning, in additionis also necessary to steadily generate synergies throughequipment tire demand reduction resulting fromto the finance function. We are also promoting global

M&A. To this end, we must look ahead from a mid-longsemiconductor shortages through solid growth

optimization while strengthening global connectivity

term perspective, incorporating not only self-assessments

across the company.

but also objective external evaluations and provide firmof replacement tires sales. Also, responding to

The environment surrounding our Group’s operation is
becoming even more challenging with the increase in raw
material prices, heightened geopolitical risks and ongoing

Flexible, agile and resilient management is required toovercome any future unexpected events we may face.

inflation. In addition to addressing near-term issues, theI also view non-financial KPIs related to sustainability as

extended Global CFO role is responsible for optimizing

important components of corporate value. CO₂ emissions,the entire value chain based on our mid-long term

for example, are an important KPI we consider as we

vision. With an eye on Bridgestone’s transformation to aaccelerate our approaches toward carbon neutrality. For

sustainable solutions company, we are steering efforts

this reason, we incorporate sustainability factors into ourto promote the Mid Term Business Plan (2021–2023)

consideration of strategic resource allocations, such as

and beyond, under the “Bridgestone E8 Commitment,”

using internal carbon pricing to evaluate CO₂ emission

launched in March 2022, as the axis.

costs and reduction benefits.

We have also begun managing our business withAs the Global CFO, I will continue to strive for thea greater awareness of capital cost and portfolio

sustainable improvement of our corporate value throughoptimization, with ROIC as the critical management

enhanced engagement and information disclosure withindex. ROIC for 2021 improved by 3.9 percentage points

investors and other stakeholders.

from the previous year to 9.0%, thanks to company-by global procurement projects.
In 2022, the Group will continue to execute flexible
and agile management and respond promptly
to changes in the business environment with an“aggressive approach” and a “challenging” spirit.

● Expanding sales of passenger car High Rim

Diameter (HRD) tires

and more speedily in order to sustainably enhance ourdirection as a compass for the company’s management.

improvement of sales mix and cost improvement

production for local sales.” From the third quarter,

the deterioration of the business environment
including inflation in raw material, ocean
freight and energy and labor shortages in North
America, the Group minimized the impact throughexecution of flexible and agile management suchas reinforcement of strategic price management,

For the premium business strategy, the Group is
continuously expanding sales of high-value-added
products such as passenger car HRD tires. The Groupwill promote the sales expansion by taking in therecursion demand from original equipment tires (OE)to replacement tires (REP).
The Group is taking initiatives to expand sales in linewith mobility maturity and market characteristics ofeach region. In the United States and Europe where
the shift to higher inches is ahead, the Group has
enlarged its market share especially in the fourth
quarter of 2021, and as a result, HRD tires of 18 inches
and above account for more than 60% of original
equipment tires and 30% of replacement tires. In
emerging markets, the Group is looking ahead to themarket shift to HRD tires and will expand sales of 17
inches and above as premium products.

*Plan: Mid Term Business Plan (2021-2023)**Sales share: Bridgestone estimation

39 | Message from the Global CFO

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 40

New premium products for the EV era: ENLITEN business strategy● Supporting the widespread adoption of EVs

with ENLITEN

30% of resources devoted to tires for EVs. The GroupThe mobility industry has entered a period of greatand “Ecology: Committed to advancing sustainabletransformation with CASE and MaaS. The shift to EVs andtire technologies and solutions that preserve the

The Group is expanding the use of ENLITEN for tires onelectrification is accelerating on a global scale toward

environment for future generations” stated in the

new EVs in its Europe focus area. Approximately half

the goal of becoming carbon neutral. In addition, with

“Bridgestone E8 Commitment.”of the 10 most popular models of EVs sold in Europe

the expansion of car-sharing services, the utilization
rate per vehicle is increasing and the performances
required for tires are changing dramatically.

The Group plans to offer approximately 90 ENLITENequipped products for passenger car and light truck tires

innovation and expansion of ENLITEN, with more thanhas set a target for ENLITEN equipment for 10% of thereplacement tires on passenger cars in Europe by 2023,
rising to 70% by 2024, and to more than 90% by 2030.

in 20211 were fitted with Bridgestone Group tires. The
Group’s development facilities in Europe are acceleratingfrom 2022 to 2030, aiming to achieve 100% fitment of

To respond to this evolution in mobility and the need for

ENLITEN by 2030. The Group will also expand sales ofsustainability, the Group has strengthened development

truck and bus tires with ENLITEN in the Japan market

of ENLITEN as the innovative tire technology optimized

and target 70% fitment rate by 2030.

Co-creation with EV manufacturer Fisker

Going forward, the Group will enhance value in its

In August 2021, the Bridgestone Group finalized a partnershipproducts and business model as the ENLITEN business

contract with Fisker Inc., an emerging American electric vehicle

strategy. The Group will establish new premium strategy

company, to develop and supply tires for the Fisker Ocean, its

in the EV era and create value that can sometimes beall-electric SUVs. New Fisker Ocean vehicles will sit on custom-

contradictory such as balancing customization of tiredeveloped Bridgestone POTENZA SPORT tires with ENLITEN

performance suited to each customer with productivity

technology and be on the market in Europe in 2023. Fisker,

improvement and cost optimization across the value

which aims to contribute to next-generation mobility by offering the world’s most sustainable automobiles,

chain. In order to realize this, the Group will drive

empathized with the Group’s initiatives across its value chain to realize the Sustainability Business Framework

innovation in the development and production process

and this partnership was initiated from the empathy. The development of POTENZA SPORT was streamlined using

in conjunction with commonality and modularity that

the Group’s unique tire development simulation technology. It is already making a significant contribution in theenables simplification and differentiation and aim

manufacturing field with technical innovations that reduce CO2 emissions and improve resource productivity.

to fit EVs and expanded from the fitment on tires for
new vehicles in Europe. ENLITEN is a core elementof the strategy to strengthen the Group’s Dan-Totsu
Products. The considerable reduction in tire weightand rolling resistance and longer wear life per raw
material help to conserve resources and lower theenvironmental impact, while also extending an EVʻsrange with tire technology that achieves balance ofvarious performances such as driving performance anddurability, which used to be considered a trade-off. By
contributing to the widespread adoption of EVs and theimprovement of resource productivity, the Group strives
to achieve its commitment for “Energy: Committed to
the realization of a carbon neutral mobility society”

reduction of environmental impact while also growing
business.

1

VW iD3, VW iD4, Tesla Model 3, Renault ZOE, PEUGEOT E-208, Mercedes EQB, Fiat 500, Nissan LEAF, Mercedes EQC, PEUGEOT E-2008. Calculated by Bridgestone
based on sales figures for automobile models from January to July 2021. Underlined models are fitted with Bridgestone tires.

41 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 42

Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Growth Business
Global expansion of the solutions business● Expanding solutions combining real x digital

The solutions business, which the Bridgestone Group has identified as a growth business, amplifies value

With approximately 18,400 passenger car sites and 6,400 truck and bus sites1 throughout the world, theto customers when they use tires. It maximizes the value provided by the Group through coordination

Bridgestone Group’s Dan-Totsu Solution Network is the foundation of its solutions business. This networkwith its core tire business.

is a strong “real” based on the Group’s DNA that is being close to on-site and customers and understanding

The Group promotes various global initiatives in three businesses: Tire-centric solutions, retail & service,

20 years of experience with digital fleet solutions in Europe, the Group is providing multiple solutions,and mobility solutions. By expanding the solutions business, the Group continues to accelerate its growth
as a resilient business adaptable to change. In its Mid Term Business Plan (2021–2023), the Group aims toincrease solutions business sales from approximately 18% of sales in 2021, to 20% or higher by 2023.

Expansion progress of major solutions

their pain point more than them. Combining the Group’s strong “real” with “digital,” which includes overincluding the management and provision of data related to vehicle operations.

Tire-centric solutions: Enhancing mining solutions
In tire-centric solutions, the Group will expand retread

business centered on “real” such as the giant off-the-road

service for truck and bus and new solutions business (non-mining tire “Bridgestone MASTERCORE” and also enhancing

conventional tire sell-out), including mining and aviation

the mining solutions business combined with advanced

solutions. The Group aims to support safe and efficient“digital” which collects and analyzes the tire/vehicle data inoperations of customers and contribute to productivity

real time.

improvement. Through these activities, the Group is also
addressing sustainability issues such as CO2 reductions
and resource productivity improvements. By expanding
tire-centric solutions, the Group strives to achieve its
commitment for “Ecology: Committed to advancing
sustainable tire technologies and solutions that preserve theenvironment for future generations,” “Efficiency: Committed
to maximizing productivity through the advancement ofmobility” and “Extension: Committed to nonstop mobility
and innovation that keeps people and the world moving
1

TPP: TOTAL PACKAGE PLAN, 2 COE: CENTER OF EXCELLENCE, 3 SUP: SINGLE UNIT PRICE / CPL: COST PER LANDING

ahead” stated in the “Bridgestone E8 Commitment.”

The Group will leverage synergies from the 2021 acquisitionof Otraco, a solutions provider engaged in mining vehicle
tire services and management, to expand on-site service
networks for mining customers, utilize digital tools for tirelifecycle management, and manage mining customer tire
inventory to optimize operating costs.
Having signed contracts with major mining companies for
41 mines as of February 2022, the Group is providing service
that combines tires and solutions. Going forward, it will
expand mining solutions and support mining operations.

For mining solutions which represent the Group’s Dan-Totsu
Solution, the Group is promoting the growth of the tireContinue expansion of the resilient business model1

43 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Number of stores (as of end of 2021): Equity stores/franchise/voluntary chains/special contract dealer

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 44

Retail & service: Reinforcing value proposition during the use of tires
Focusing on improving the user experience (UX), theinnovation that keeps people and the world moving

Group will leverage its Dan-Totsu Solution Network toahead” as stated in the “Bridgestone E8 Commitment.”

further expand services customized to each individual
customer, including subscription models, mobile vanservices and an EV charging solutions network. These
efforts will be promoted mainly in Europe, the UnitedStates, Australia, Japan and Thailand, where the Grouphas its strong retail networks. Through the efforts
during the use of tires, such as contributing to the
expansion of EVs, the Group will also focus on “Energy:
Committed to the realization of a carbon neutral
mobility society,” “Efficiency: Committed to maximizing
productivity through the advancement of mobility”
and “Extension: Committed to nonstop mobility and

The Group is expanding mobox in Europe, a subscription
model that provides tire and vehicle maintenanceaccording to customers’ conditions of use, and officiallylaunched the service in Japan in April 2021. The Groupis driving the expansion to North America and otherregions and, in 2022, will increase the number ofsubscriptions to approximately 100,000 contracts,
2.5 times higher compared with 2021. The Group is

Mobility solutions: Accelerating global expansion through strategic growthinvestment
The Group is promoting the global expansion of mobility

The Group is also expanding mobility solutions andsolutions centered on Webfleet Solutions, Europe’s No.1

service enhancements in regions outside Europe. With thedigital fleet solutions provider, through strategic growthacquisition of U.S. based digital fleet solutions provider

investment. Through the expansion of mobility solutions,Azuga Holdings Inc. in 2021, the Group became connected

the Group will support safe and secure mobility for society

to 1,000,000 vehicles mainly in the United States andand customers as it strives to achieve its commitment for

Europe. Additionally, affiliated company Brisa Bridgestone“Efficiency: Committed to maximizing productivity throughSabancı Lastik Sanayi ve Ticaret A.Ş. in Turkey has agreed tothe advancement of mobility” stated in the “Bridgestone E8

acquire Arvento, a digital fleet solutions provider developing

Commitment.”

fleet management systems in Turkey, the Middle East andother regions, and the Group is accelerating the expansion

also expanding its customized mobile van service that

In Europe, the Group integrated Webfleet Solutions, which

provides high-quality mobile maintenance services on-site

contributes to the improvement of safety, productivity

to customers when vehicle breakdowns occur.

and economy for drivers and fleets through managing andExpanding its mobility solutions with the aim of establishingproviding various operations data, and other solutions

leading positions in each region, the Group will leveragebusinesses, establishing Bridgestone Mobility Solutions as

experience and expertise gathered in Europe to establish

an independent legal entity. The Group plans on increasing

global synergies for global expansion.

of mobility solutions.

the number of subscription contracts from approximately
800,000 as of December 31, 2021, to approximately 850,000
in 2022.

Expanding development of mobility solutions in North America
Founded in 2012, Azuga is a U.S. based digital fleet solutions provider with a state-ofthe-art fleet operation management platform incorporating GPS tracking, telematics
and driver behavior monitoring. It provides services to more than 6,000 fleets in the
United States comprising approximately 200,000 subscribed vehicles.

Enhancing EV charging networks

The Group already provides fleets in North America with industry-leading tire-centric solutions that utilize cutting-

Having entered into a long-term partnership with EVBox Group, leading providers of charging solutions for EVs,

with mobility solutions incorporating digital technologies, supporting safe and efficient customer operations andthe Group will install approximately 3,500 new charging ports at BSEMIA retail and solution network bases over

improved vehicle fuel efficiency. Additionally, the Group will utilize vehicle data obtained from Azuga’s operation

the next five years and expand EV charging infrastructure. Customers using EVs will have smooth access to thesemanagement platform to create synergies that include advanced tire-centric solutions, Dan-Totsu product

BSEMIA charging ports and more than 130,000 EVBox Group public charging ports via a common dedicated carddevelopment and expansion of the tire sales customer base. These expanded offerings will further create social andor mobile app. In the United States, the Group also plans to installcustomer value including safety, a healthier environment, cost efficiency and productivity.

edge tire technology and retreads. With the addition of Azuga, the Group will provide a wider range of customers

approximately 50 charging ports in 2022 by partnering with Blink

By also leveraging expertise and knowledge gained from the acquisition of Webfleet Solutions, the Group will begin

Charging, an EV charging solutions provider.

to scale-up mobility solutions in North America.

With the commencement of these partnerships, EV charging
solutions will be added to the Group’s retail and solutions networks,
enabling it to provide a wider range of service and solutions for EVs.

45 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 46

Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Exploratory Business

Exploratory Business: Recycle BusinessToward small-scale commercialization during the next Mid Term Business Plan

The Group considers used tires a resource andmaterials. By recycling synthetic rubber, carbon

aims to construct a society where the value

black and other raw materials originally derivedof tires is sustainably circulated through tirefrom petroleum from used tires, the Group aims

(2024–2026)

The Bridgestone Group, aiming to be a sustainable

aim of commercializing these technologies asrecycling initiatives. To realize carbon neutrality

to sustainably secure key materials for tires andsolutions company, is adding exploratory

soon as possible (see pages 48–49).

and a circular economy, the Group continues tomeet future tire demand, which will increase

promote the initiatives as it strives to achievewith the growth in demand for automobiles andits commitment for “Energy: Committed to thetransportation, as the shift to decarbonization andrealization of a carbon neutral mobility society”

petrochemical-free raw materials accelerates.

businesses to its portfolio. It is exploring
technology and business models in new fields•

Soft-robotics business
Using the Group’s core competencies of ”mastery

where the Group’s core competencies can beof rubber” and ”mastery of road contact,” theleveraged to achieve sustainable future growth.

Group is advancing exploratory business models

Starting with the recycle business and the soft-for small-scale commercialization of soft-

robotics business, the Group is now moving

robotics (see page 50).

forward with the commercialization of threebusinesses, including the guayule business, whichaims to diversify natural rubber supply sources.
••

Guayule business
Through co-creation with partners mainly in the
United States, the Group aims to commercialize

Recycle businessnatural rubber derived from guayule, a plant that

The Group continues to search for technologies

can be grown in arid regions, by 2026 (see pages

to renew tires into rubber and other raw

51–52).

and “Ecology: Committed to advancing sustainabletire technologies and solutions that preserve theenvironment for future generations” stated in the“Bridgestone E8 Commitment.”
The shift from a “linear economy,” in which natural
resources are extracted, made into products anddisposed of in large quantities without being
reused, to a “circular economy,” in which resources
are reused and recycled, is an issue faced bysociety. As resource consumption increases due

materials through co-creation with partners
globally. In Japan, large-scale demonstration
tests will be conducted through 2030 with the

There are many technical issues involved inreturning tires to rubber or other raw materials.
Innovation, in addition to the Group’s tire andrubber business R&D know-how, is very importantas it works toward co-creating and advancing therecycle business with partners.
Toward this end, the Group launched the EVERTIRE

balance of resources is expected to become tighter.

INITIATIVE, a program to create a future in which

The Group recognizes that using resources moretires are recycled to create new tires – not as waste

wisely and sustainably is an important issue and atires or end-of-life tires – but as tires that arebusiness opportunity for the Group.

returned to rubber and other raw materials anda high degree of recycling and utilizing usedtires, which are currently used mainly as fuel,by developing technology to return them to raw

Bridgestone 3.0 Journey 2022 Integrated Report

recycled tires are the standard

to societal economic growth, the supply-demand

The Group is working to build an ecosystem with47 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

● EVERTIRE INITIATIVE, toward a future whererecycled as EVER (always, forever, and everlasting)tires. The Group will continue to expand andaccelerate its recycle business with partners under
this EVERTIRE INITIATIVE.

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 48

Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Exploratory Business: Soft-robotics Business
Developing chemical product manufacturing technologies utilizing used tires

Supporting the lives of individuals through the power of rubber

Bridgestone and ENEOS Corporation launched a joint research and development project aimed at the successful

The soft-robotics business is a new challenge for theSoft-robotics with “just the right” grip support thediversified products business the Bridgestone Group

lives of individuals through the power of rubber, andhas built to support safe mobility and movement ofalso live up to the “Bridgestone E8 Commitment”

people and objects with soft robots that can workof “Empowerment: Committed to contributing to awith people.

society that ensures accessibility and dignity for all.”Soft-robotics leverage the Group’s core competencies

Project teams are maximizing the features of rubberof know-how and technology of ”mastery of rubber”

actuators such as light yet powerful, gentle yet strongand “mastery of road contact.” They can addressand durable, thus exploring its various applications,social and customer issues such as labor shortages

including soft-robot arms, soft-robot hands and an

and work automation against the backdrop of

EV-compatible automatic charging robot. In addition,

declining birthrates and aging populations, especiallythis business has amplified synergies with existingin developed countries. They also can support thebusinesses, allowing the use of existing facilities fordemand for non-contact interactions due to the

manufacturing. It also leverages the know-how of

COVID-19 pandemic.

core and growth businesses in its business model,

development of “chemical recycling technologies that enable precise pyrolysis of used tires1.” Synthetic rubber
is one of the primary materials used when producing tires and, today, is generally produced from petroleum.

Used tires are mainly utilized as fuel in Japan, but to reduce CO2 emissions generated in this method, it becomesincreasingly important to circulate tires in a process that emits less CO2, rather than burning them.

In this joint project, the companies will engage in demonstration projects that achieve high-yield production ofchemical products, such as butadiene, a raw material used in synthetic rubber. The large-scale demonstrations
will be advanced toward 2030 with the goal of achieving mass production and swift commercialization.

The companies will maximize the advanced rubber and polymer material design technologies the BridgestoneGroup has cultivated through its tire and rubber business with the crude oil refining technologies and basic
chemical product manufacturing technologies
of ENEOS. Together, Bridgestone and ENEOS,

Tire
manufacturing

as leaders in the tire and rubber industry andthe petroleum and petrochemicals industry

Tire
Use

respectively, are working to increase resourcewith the aim of early commercialization.

circulation and reduce CO2 emissions across thevalue chains of their industries.

This project is one of two R&D projects whichhave been adopted by the New Energy andChemical products
derived from used
tires
(Butadiene, etc.)

Synthetic
rubberproduction,
etc.

Used tirecollecting
andshredding
Used tires

Industrial Technology Development Organization(NEDO) as part of its “Green Innovation Fund2 /Development of Technology for Producing Raw

Materials for Plastics using CO2 and Other Sources

Projects” with a project scale of 24.10 billion JPY
and approximately 16.45 billion JPY in funding3.

Chemicalproduct
manufacturing

Petrochemicals(Naphtha and others)
derived from tires

Research andDevelopment Scope

The Group is developing a soft-robot hand utilizing Bridgestone’s technology and know-how. This
Pyrolysis

Reﬁning/
Converting
heavy oil tolight oil

Soft-robot hand with “just the right” pinch, grip and wrap

innovation applies a rubber actuator consisting of a rubber tube surrounded by a sleeve of high-strength
fiber, leveraging the technology used in tires and hydraulic hoses. By taking advantage of the flexibility,

Tire-derived oil

impact resistance, light weight and high output features of rubber actuators, the soft-robot hand canachieve “just the right” pinching, gripping and wrapping of soft to hard objects, large and small, and ofvarious weights. The Group envisions a variety of
applications for the robot hand, including picking
tasks in the stock areas of the logistics and retailPartnership with LanzaTech to pursue used tire recycling technologies

stores. Through co-creation with partners, theWith its co-creation partner LanzaTech NZ, Inc., a Carbon Capture and Transformation company, the2023 and commercialize the product during theBridgestone Group seeks to develop a new business model that will create a post-consumer waste
management strategy for used tires, while also driving increased adoption of sustainably sourcedGroup aims to conduct PoC (proof of concept) by
next Mid Term Business Plan (2024–2026).

chemicals for commercial applications.
Applying LanzaTech’s carbon capture and gas fermentation process to used tires yields sustainably

produced chemicals such as ethanol that can be converted to materials like PET for packaging, polyester
yarn and surfactants used in consumer goods like laundry detergent. In addition, the Group and

LanzaTech are jointly exploring proprietary microbe technology to identify more efficient pathways to
produce butadiene, a key ingredient in new tire production.

Together with LanzaTech, the Group will lead the way toward tire material circularity and thedecarbonization of new tire production and contribute to the realization of a sustainable society.

Chemical recycling entails treating used materials with chemicals to convert them into other chemical substances to be recycled, as opposed to reusing them as is.
The Ministry of Economy, Trade and Industry (METI) of Japan established this program to help achieve the Japanese government’s goal of carbon neutrality by 2050.
It aims to accelerate structural transformation in the energy and industry sector and innovation through ambitious investment. The fund supports companies andother organizations that address challenges to move from R&D to demonstrations to social implementation of the outcomes within 10 years.
3
Details of the other program of the two R&D projects are available online.
12

49 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 50

Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Exploratory Business: Guayule
Planting seeds for the future natural rubber supply

As a new crop, growing, harvesting and using guayule requires new processes. The Group has alreadyNatural rubber, extracted from the Para rubber tree,knowledge related to agriculture, processing

is a key component of all tires. But growing andprocess has been successfully demonstrated and potential end-market uses for the non-rubber co-products areand use in tires, including the development ofcultivating rubber presents challenges. Specifically,tires with 100% of their natural rubber-containing

being identified.

Para rubber tree supply is geographicallycomponents derived from guayule, and large-

concentrated, subject to disease and climate

scale propagation through open innovation aschange, and labor intensive to cultivate.

the Group strives to achieve its commitment for

But alternatives are on the horizon. Guayule shows
significant promise as a solution to diversify
natural rubber supply across different plant species
and into various climates. Guayule is an evergreen
shrub in the aster family. The highly droughttolerant plant is native to the Chihuahuan Desert
in northern Mexico and the southwest U.S. It
accumulates rubber in the bark layer as a stressresponse to cold, almost identical to natural rubber
harvested from Para rubber tree. Importantly,
guayule does not compete with food crops and issuitable to mechanization. Planting more guayule
could also expand green land that contributes toincreased CO2 absorption.
To put guayule into practical use, the BridgestoneGroup has been investing in a research anddevelopment effort to focus on guayule since

Agriculture

Extraction Operations

Products

Maximum rubber per acre at minimum
cost and minimum total biomass

Maximum throughput at target quality
and minimum capital investment

Maximum revenue from non-rubber productswith minimal incremental investmentof local farmers it works with, who are working toGrowing Protocols

Safety & Operability

Hevea Performance Equivalence

convert their farmland to harvest guayule, which

Adoption by Growers

Extraction Yield

Enhance Rubber Value: TBR

has served as an alternative to previously failing

Rubber Content Improvement

Rubber Quality

Enhance Rubber Value: Society“Ecology: Committed to advancing sustainabletire technologies and solutions that preserve theenvironment for future generations” stated in the“Bridgestone E8 Commitment.” As a new initiative,
in Central Arizona, BSAM is expanding the number

crops due to growing water shortages. In 200 acres

Market Dev. for Co-productsof new fields guayule will be planted in 2022. This

Demonstrated

initiative is a direct result of BSAM’s agreement

Focus Area

with the Environmental Defense Fund, an NGO
actively involved in water shortage solutions for
the Colorado River which is used for irrigation inthis area.

In addition to natural, sustainable rubber, guayule processing produces distinct co-products that will provide
benefits to other industries. To maximize this opportunity, the Group is building a new partner ecosystem withThe Group will continue driving with the aim ofagriculture, energy, cosmetic and other companies; nonprofit organizations; funders; governments and others

practical use of guayule by 2026 and its full-scale

to fill knowledge gaps, open markets and reduce risks.

production and commercialization by 2030.

Partner Value:2012 and has accumulated technologies andestablished growing protocols that maximize the amount of rubber produced per acre. The rubber extraction

Processing

Outputs

Financial

Value proposition (low H2O)

Facility/equipment design

Formulation support

Investment capital

Grower recruitment

Operational expertise

Seed production

Logistics optimization

Market/customer
development:- Latex- Resin- Bagasse

InputsGovernment grants/loans

Guayule farm in Arizona (United States)

Grant & Incentives:- Biofuels- CO2 reduction- H2O reduction

R&D activities history
2012: Official launch of R&D activities
2013: Establishment of guayule R&D farm in Arizona (U.S.)
2014: Establishment of the Biorubber Process Research Center in Arizona (U.S.)
2015: Completion of first tires made from guayule-derived natural rubber

Security Classiﬁcation S2
2
Throughopen-innovation and co-creation of this exciting
biodiversity opportunity, the Group will diversify its

natural rubber resources, reduce risks of its natural rubber supply chain and further contribute to the sustainableproduction of natural rubber.

2015–2018: Efforts toward establishing guayule process technology
2018: Selected as recipient of research grant from USDA National Institute for Food and Agriculture
2022: Awarded a research grant by the U.S. Department of Energy Joint Genome Institute to advance its optimization of
guayule51 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 52

Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Progress toward Realizing the Sustainability Business Framework
Sustainability Business Framework

Contribution to carbon neutrality

The Bridgestone Group is accelerating efforts toward

recycle business. By contributing to resource circulation

the realization of a Sustainability Business Framework

and CO2 reduction throughout its value chain, the Group

that links business models with efforts toward carbon

is committed to the “Bridgestone E8 Commitment” ofneutrality and a circular economy throughout the value“Energy: Committed to the realization of a carbon neutral

chain – across all of “produce and sell,” “use,” and “renew”

mobility society” and “Ecology: Committed to advancing

its Dan-Totsu Products.

sustainable tire technologies and solutions that preserve
the environment for future generations.”

The Group has realized tire-to-tire recycling, which
is based on retreading, where the tread of the tire is

To realize this unique Sustainability Business Model, thereplaced, and the casing is reused. This is contributing toGroup is accelerating efforts to achieve carbon neutrality

CO2 emissions reduction and resource circulation. Toward

and a circular economy as priorities in the Mid Term

2030, it will create opportunities in the recirculation

Business Plan (2021–2023).

of tire-to-rubber and tire-to-raw material through its

The Bridgestone Group believes the demands ofsociety and customers to reduce CO2 emissions willcontinue to increase in the future, given the need torespond to climate change. Toward its goal of carbon
neutrality for 2050 and beyond, the Group is working
to concurrently enhance its contribution to CO2
reduction and to minimize CO2 emissions.

and services that contribute to the reduction of CO2
emissions from customer use, the Group is developing andexpanding fuel-efficient tires equipped with ENLITEN, aninnovative tire technology that combines environmental
and driving performance, and mobility solutions thatprovide fleet management services.
In 2021, the Group continued to reduce the tire rolling

The Group will contribute to CO2 reduction in theprocesses of raw-material procurement, distribution,customer use, and reuse and recycling, whileproviding solutions based on Dan-Totsu Products and
Dan-Totsu Service. Together with its customers andpartners, the Group will contribute to the reductionof CO2 emissions in society as a whole and will also
differentiate itself and strengthen its competitivenessby helping its customers reduce their CO2 emissions
and become carbon neutral.

resistance, and the contribution to CO2 reduction
combined with the activities of the entire value chain is
equivalent to approximately 1.6 million tons3. This is 0.5
times the amount of CO2 emissions from its operations.
The Group will continue to improve its monitoring of theamount of CO2 reduction contribution of each SBU andexpand its contribution to CO2 reduction.
Furthermore, with regard to CO2 reduction throughout the
supply chain, the Group’s Global Sustainable Procurement
Policy requires environmentally responsible procurement
practices, including reductions in energy use andgreenhouse gas (GHG) emissions. To ensure the Policy is● Expanding contribution to CO2 reduction

fully understood, the Group holds annual conferences for

The Group has set a goal to contribute to global CO2Group asked for suppliers’ cooperation in reducing CO2

emissions reductions across the lifecycle and value chain

emissions, introducing renewable energy, and otherwiseof its products and services that exceed by five times the

becoming carbon neutral.

CO2 emissions from its operations by 2030 .

suppliers in several regions. At the 2021 conference, the1

The Group will continue to accelerate its efforts to

Looking at the entire lifecycle of a tire, CO2 emissions

contribute to the reduction of CO2 emissions in society as aduring product use account for the largest proportion,

whole, together with its customers and business partners.

approximately 90% of the total2. As a provider of products

Products

Solution1

Baseline year: 20202

Source: “Tyre LCCO2 Calculation Guidelines Ver.3.0.1,” Japan Automobile Tyre Manufacturers Association, Inc.

3

Calculated using Bridgestone’s proprietary calculation method based on the “Tyre LCCO2 Calculation Guidelines Ver. 3.0.1” (The Japan Automobile Tyre
Manufacturers Association, Inc.)

53 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 54

● Minimizing CO2 emissions

to cover 100% of the plant’s steam demand2. The GroupRegarding the reduction of CO2 emissions, the Group aims

energy while considering the local characteristics of eachto achieve its target of reducing absolute CO2 emissions(Scope 1 and 2)1 by 50% by 2030, compared to 2011. The
Group has set an interim goal of reducing Scope 1 and 2

will continue to expand the introduction of renewabletransform the Group’s business model to increase the business value of its tires and gain competitive advantage by

The Bridgestone Group is also actively engaged in the

its Sustainability Business Model. It is also making comprehensive efforts to contribute to the attainment of fourcontinuous improvement of energy efficiency at its

To achieve these aggressive targets, the Group has

consumption by 0.5% per year for the entire Group. For

manufacturing sites and is working to reduce total energy
example, it is introducing high-efficiency equipment,

2021, switched all electricity purchased to renewable

A circular economy not only helps mitigate pressures on the environment, but it also provides an opportunity to

SBU.

emissions by 30% or more by 2023, compared to 2011.

increased the use of renewable energy sources and, inContribution to a circular economy

using resources more wisely and sustainably. To this end, the Group is integrating circular economy concepts into
important social and customer values: safety, environment, economy and productivity.

The Bridgestone Group’s approach to achieving a circular economy

implementing measures to reduce energy loss, andenergy sources at all of BSEMIA’s Europe locations,Long Life /Resource-Saving
Designpromoting energy conservation through visualization offour plants in Japan (Hikone, Shimonoseki, Tosu, andenergy loss. BSEMIA also is focusing on strengthening

Kitakyushu) and two plants in China (Tianjin and Wuxi).
The Chonburi plant in Thailand installed 2,160 photovoltaic
panels on its roof and started supplying 1 MW of solar

energy management, acquiring ISO 50001 certification for

Cascade Recycling /Energy Recovery

all its tire plants in Europe.

Product
Development
Minimize disposal

Utilization of
Renewable Resources

Recycled
Material

Furthermore, the Group is strengthening its use of

power in 2021. Also, a large 9.2 MW solar power system
will be in operation at the Burgos plant in Spain in 2022. In
addition, the Group is introducing renewable energy at its
non-manufacturing sites and has switched all electricity

internal carbon pricing and incorporating CO2 emissions

Recycle / Upcycle

into its investment decision criteria, such as investment

Procurement

Disposalin energy-saving equipment, and installation of solar
power generation. It will promote activities to educate

to renewable energy at its research center in Thailand.

Material
Circularity1

Reproductand disseminate internal carbon pricing to employees and

The Group aims to expand its renewable energy ratio(electricity) to more than 50% by 2023. As a result of these
initiatives, the ratio in the Group reached 16.3% in 2021. It
also promotes utilization of fuels from renewable sources
and in 2021 the Pune plant started to use biomass boiler

encourage investments toward carbon neutrality.

Repair / Reuse

As a result of these initiatives, Scope 1 and 2 emissions

Recoveryin 2021 were reduced by 25.0% compared to 2011. In

Product
Circularity2

2022, the Group submitted a commitment letter to the
SBT (Science Based Targets) Initiative, an organization

Manufacturing
Sharingthat certifies GHG emission reduction targets that are
scientifically consistent with the targets set forth in the
Paris Agreement, and is in the review process to obtainUse

SBT approval. Group-wide activities will be advanced toachieve carbon neutrality by 2050.

Chonburi plant in Thailand

CO2 emission (Scope 1 and 2) reduction target in manufacturing
CO2 emission (Scope 1 and 2) reduction target in manufacturing

4,000

4,000

3,000

3,000

THOUSAND TONNES

THOUSAND TONNES

5,000

Base
Base
year
5,000 year

2,000

Focused
FocusedTargetTarget-25.0%%
-25.0

-50
-50%%

2,000
1,000

1,000
0

0

100%

100%

2011 12 13 14 15 16 17 18 19 20 21

2030

2030

To promote its contribution to a circular economy, the Groupthroughout the entire product lifecycle, such as long-life design,
CarbonNeutralCarbon
2050

0%

2050

use of renewable resources, retreading, recycling, repairing,2021 was 37%.

0%

Milestone 2030 Focused Target 40%

A concept to show circularity of raw materials. The Bridgestone Group uses the ratio of recycled materials and renewable materials to total raw materials as
the indicator for material circularity.

2

lifecycle stages.

A concept to show circularity of used products. The Bridgestone Group uses the ratio of beneficial next use of used tires collected by its shops/stores (basedon the number of shops/stores and contracts with processing companies) as the indicator for product circularity.

Except for maintenance periods

3

Bridgestone 3.0 Journey 2022 Integrated Report

37%

Recycled
material
11%

sharing, etc. The ratio of recycled and renewable material inScope 1 covers all direct CO2 emissions by a company (from boilers of manufacturing facilities, etc.). Scope 2 covers indirect energy-related CO2 emissions (from55 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Renewablematerial
26%

material3 to 40% by 2030. It is accelerating various initiatives

consumption of purchased electricity, etc.). Scope 3 covers CO2 emissions from raw material procurement, distribution, customers’ use, disposal, and recycling2

新規図作成（日・英）Material circularity ratio (2021)

1
1

Products
as a Service

has set a target to increase its ratio of recycled and renewable

Neutral2011 12 13 14 15 16 17 18 19 20 21

Sales

Within total material weight for tire products including tire casing for retreading

色味は指定しませんので章・ページ全体の円グラフの40％は厳密に40％の位置だとRealization of Mid-Long Term Business Strategy with Sustainability at the Core | 56

CRealization of Mid-Long Term Business Strategy with Sustainability at the Core

Innovation & DX
● Retreading● Collection and effective use of used tires

Innovation supporting the Mid-Long Term Business Strategy

The Bridgestone Group is developing a global retread

To improve product circularity, the Group complies

service in which it collects worn out tires fromwith the laws and regulations of each country and

To continue to provide social and customer value

customers, replaces the worn tread, and delivers

region in effectively utilizing and disposing of usedtires that are again ready for use. Retreading tires

tires collected at dealerships. Of the approximately

can contribute to improved resource productivity and3,700 directly managed shops/stores worldwide,

reduced CO2 emissions. Based on the premise that96% excluding some countries and regions have

In April 2022, it kicked off full-scale operation of

Bridgestone retreaded tires are used three times by

stipulations in their contracts with processing

a customer, versus the use of three new tires, raw

companies regarding effective utilization after

Bridgestone Innovation Park, in Kodaira, Tokyo, asmaterials used and CO2 emissions generated during thecollection. The Group is working to create newentire life cycle, excluding the use phase, can be reduced

value through increased tire recycling, including theby half. By providing solutions that combine multiple

effective use of collected used tires in its recycle

retreads based on the Group’s unique technology, Dan-business.

social and customer value of safety, cost efficiency,
productivity and environmental sustainability.

the Bridgestone Group will strengthen its sources ofcompetitive advantage through innovation.

its global innovation hub to create new value withvarious stakeholders. In its tire business (core business),solutions business (growth business), exploratory
business and diversified products business, the Group is
promoting co-creation with various internal and external

Totsu Products, and appropriate maintenance, the Groupmaximizes the asset value of tires, as well as provides

as a sustainable solutions company toward 2050,● Collaborative effort for a circular economy

The Group has been a member of the Ellen
MacArthur Foundation’s Network since 2018. Bylearning from the Ellen MacArthur Foundation’s
extensive knowledge and the best practices ofother member companies, the Group can
incorporate the concept of the circular economy
into its business model and aims to create newpartners across the value chain. The Group will accelerateinnovation by utilizing the Bridgestone Innovation Park
as a site to promote interaction with empathy among
society, partners and customers about the Group’s DNA
and vision, cultivate the relations through co-ideationand co-R&D, and then realize co-creation of new value.

●B ridgestone Innovation Park: Global

innovation hub earning empathy andpromoting co-creation for creating newvalue through innovation

In Kodaira, Tokyo, Bridgestone’s Tokyo plant wasestablished in 1960 and a technology center was built
later in 1962. Bridgestone has supported motorizationin Japan with high quality products which weredeveloped by collaboration with the plant andtechnology center facing one another at the samesite. It has also contributed to the development ofregional community in Kodaira, and evolved together
for more than half a century. As one of the criticalstrategic growth investments within the Mid TermBusiness Plan (2021–2023), the Group renovated thetechnology center as a site to create future value from
Kodaira, the birthplace of Bridgestone’s technology
at the timing to accelerate the transformation towarda sustainable solutions company, together with the“Bridgestone E8 Commitment.”social and customer value throughout the tire

Bridgestone Innovation Park consists of mainly threelifecycle, including recycling, and effective use of

facilities:

resources and energy. The Group also uses
Circulytics, developed by the Ellen MacArthur
Foundation, to measure circular economy
performance across its operations and to improve
its efforts to achieve a circular economy.

Procurement

Production

Sales

New tire (conventional ) × 3

Tire Usage／Vehicle Operation

RecycleResource productivity Greenhouse gas emissions（Ef ficient use of resources)(calculated based on CO2 emissions)

50% reduction

51% reduction

50

49

100

Fuel eff icient new tire ＋ Retread tire × 2

Retread＊100＊＊Calculated based on Tire LCCO2 Calculation Guidelines Ver 3.0.1 (The Japan Automobile Tyre Manufacturers Association, Inc.), example - Truck & Bus tire (275/80R22.5)

57 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 58

Bridgestone Innovation Gallery1, a place that serves for

Co-creation with Bridgestone’s global innovation sites

interaction with empathy between the company and its

The Group is developing innovation sites in each ofcustomers, stakeholders and society by introducing the Group’s

its global regions. With the Bridgestone Innovation

history, DNA, business activities and initiatives for the future.

strengthen collaboration with Digital Garage in Rome,
Italy and Mobility Lab in Akron, Ohio, United States
and accelerate innovation toward co-creation.

Park in Kodaira, Tokyo, at the core, the Group will

B-Innovation2, an innovation center that leads from interaction
with empathy to co-creation, which will realize:1) Co-ideation with potential partners by seeing the Group’s coretechnologies and products, and exchanging ideas about theBridgestone Innovation Gallery

concept of technology and business model, etc., with the aim ofgiving rise to new ideas.
2) Co-R&D which gives shape to ideas of technologies andbusiness models by research and development together at thefacility combined with digital.

Accelerating innovation through co-creation

3) Co-creation which realizes new value with various partners

Based on the “Bridgestone E8 Commitment,” theand for manufacturing sites to handle. “MasteringGroup will accelerate innovation of its technologies,

rubber” technology “to see, analyze and manage

business models and designs through co-creation.

rubber,” which is supported by the overwhelming

The Group thereby will continue to contribute toamount of experience and data used to overcome thisthe realization of a sustainable society, together

difficulty, and “mastering road contact,” which haswith employees, society, partners and customers.

been developed through its experience with various

As an important factor for innovation, the Groupenvironment and conditions of use, have led to thewill evolve DX by combining the strong “real,” itsGroup’s strong “real.”

and B-Innovation will be the site to create new businesses.
Bridgestone Open Innovation Hub in B-Innovation

B-Mobility2, a proving ground that can be used to quickly
experience and evaluate the prototype mobility technologies andproducts developed with partners by using real cars.

core competencies, such as “mastering rubber” andThe Group will promote more agile R&D activities by repeating“mastering road contact” that have been cultivatedthe process of developing and testing ideas immediately utilizing

over the 91-year history since its founding, with

B-Innovation and B-Mobility, aiming for maximizing innovative“digital” such as simulation technology.

value through co-creation with various stakeholders.
B-Mobility

By connecting this strong “real” with “digital” including
unique simulation algorithms, the Group will expand
and develop Dan-Totsu Products and Dan-Totsu
Solution through co-creation across the engineering● Innovation through the combination ofstrong “real” and “digital”

and value chain, end to end combining its knowledge,know-how and technology.

Rubber, which has the unique property of
New workstyles to generate innovation
Bridgestone adopts an Activity Based Working (ABW)approach at the Bridgestone Innovation Park thatenables each employee to freely design their own
personal workstyle no matter when, where, andwith whom they choose to work. At the same time,
the company is driving the culture transformation torealize both “each employee’s growth and happiness”

1

Bridgestone Innovation Gallery was opened in November 2020.

2

B-Innovation and B-Mobility were opened in April 2022.

and “growth of Bridgestone,” valuing each employee

viscoelasticity, is extremely difficult to develop

who takes the initiative in work activities. The
Company will be making the most of the Bridgestone
Innovation Park that encourages interactions among
various technologies, information, and people bytransforming workstyles as well as its workplace.
That will maximize each employee’s performance andpromote innovation through co-creation.

59 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 60

Advanced design simulation
By using advanced design simulations that combine
the Group’s accumulated high-quality market
data and tire databases with structural computeraided engineering (CAE), it is possible to simulate
the deformation and contact behavior of tires not
only on snow and wet road surfaces, but also on

Bridgestone’s DX
The Bridgestone Group promotes Bridgestone’s DX
to continuously support evolving mobility society
such as MaaS and CASE, where vehicles become
smarter and more connected to information andtechnology, from the ground up.

soil and sand. In addition, by combining this data

The Group’s unique DX enables it to operate “withwith other models, it is also possible to perform

greater data, faster, easier and more accurate.”

combined simulations of tires and suspensions,

In its 91-year history, it has cultivated its strong

tires and vehicles, etc. The Group’s Dan-Totsu“real,” including technology of “mastering rubber”

tire for mining, Bridgestone MASTERCORE, andand knowledge and Takumi — craftsperson skills —innovative tire technology optimized for EVs fitting,on tires. With the combination of its strong “real”

ENLITEN, were developed using this strong “real”

with “digital,” which provides digital simulation

and advanced-design “digital” simulation.

technology and enhances solutions business suchTargets and Results

training in 2022, expanding to approximately 1,400

The 2021 acquisition of Azuga resulted in the addition

people. Going forward, the Group will continue toof approximately 300 digital talents to the Group,
increasing the number of the Group intermediatelevel and above digital talents to approximately
1,200 people. The Group plans to continue hiring andaccelerate digital talent development as part of its
organizational capability enhancements facilitating
the realization of Bridgestone’s DX and the evolution
toward a sustainable solutions company.

as digital fleet solutions, the Group continues toMaterial and compounding simulation
The vast amount of laboratory data the Group has
about a wide variety of rubber materials is thecore of its strong “real.” Advanced material andcompounding simulations become possible bycombining this data with nano-level molecular CAE.

promote its unique DX to accelerate innovation
across entire value chain from material and productdevelopment to providing solutions to society andcustomers.

● Enhancing digital talent development* DS: Data Scientist

This will accelerate the development of innovative
materials with advanced functions beyond thoseof conventional materials currently available in themarketplace.

The Group’s DX is indispensable for accelerating
innovation, creating social and customer value with
innovative tires and solutions, and providing ongoingsupport for an evolving mobility society.

Unique algorithm used for advanced simulations
By using advanced simulations to analyze customer
driving data in real time, the Group can determine
an accurate condition on the current state of thetires on the vehicle being driven. This is madepossible by the Group’s unique algorithm based on

To this end, the Group is particularly focusedon developing high-level digital talents at theintermediate level and above tasked with the
expansion of DX and solutions businesses. It is also
encouraging talent exchanges with employeesof Webfleet Solutions and Azuga, which became

its knowledge of the world’s roads and its ability

members of the Group through M&A. Additionally,

to obtain highly accurate data from customers

the Group reinforces the recruitment andworldwide. The Group will continue further

development of digital talent by partnering withstrengthening the development of such algorithms

external organizations. As one example, the Groupto accelerate the development of Dan-Totsu
Solution that provides new social and customer
value.

Cooperation with educational institutions: “Bridgestone x Tohoku University Co-creation Lab”
In October 2021, the Group established a base for academic-industrial collaboration with Tohoku University
and launched a joint project to develop digital talent supporting the Group’s DX. The objective is to develop
Artificial Intelligence/Algorithm Experts who create solutions businesses using their expert skills. Efforts
also are underway to prepare Solution Field Engineers capable of identifying issues at business sites andlinking them to solutions proposals utilizing digital technologies. The Group will also develop digital talentpossessing advanced skills through the leadership cultivated in various research and education activities,
including advanced data science at Tohoku University, practical unique programs that fully leveragesolutions-based learning know-how, and joint research and exchanges with participating laboratories.

has established Bridgestone endowed chairs atuniversities where students can practice and conduct
research with Bridgestone employees.

61 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 62

Topic: Bridgestone Design
At Bridgestone, design has played an important role in its original foundation and second foundation, and has also been adriving force behind the Group’s activities. Its new corporate identity, the Bridgestone logo, and the B Mark were introduced
in 1984. At the time, it was a measure to transform not only visual design, but the entire corporate culture, and served as thecornerstone of its globalization.

Bridgestone Type, the Group’s original corporate font, is based on its brand identity of contributing tosociety’s advancement with care, confidence and creativity. It was created by embodying this concept into
the function and shape of the font using the Bridgestone Design’s original development method.

The Bridgestone Design in the current third foundation — Bridgestone 3.0 — contributes in the following three areas for theinternal and external implementation of the “Bridgestone E8 Commitment,” that aims to realize the Group’s vision of “Toward
2050, Bridgestone continues to provide social value and customer value as a sustainable solutions company.”•

Development of the corporate font “Bridgestone Type”

Design strategy: Planning and execution of design measures that contribute to the enhancement of the Group’s global

As fonts are the basis of printed communication, Bridgestone has been researching them since 2014 toensure its versatility, visibility, and legibility, as well as being Bridgestone-like. The project has attracted
attention from the design industry, including the achievement of the Good Design Award in 2021. This
report is printed using Bridgestone Type.

brand value.
•

Corporate design: UX (user experience) design development of customer brand experiences that enhance brand value.

•

Product design: Development of product design that contributes to the development and innovation of Dan-Totsu
Products.

Publication of AXIS extra issue “Bridgestone Design Declaration”
An additional issue of Design Magazine AXIS was

AXIS12月号増刊

published in December 2021 titled “Bridgestone
Design Declaration.” This is the first attempt to show

Pursuing “circle aesthetics”

how design has helped shape Bridgestone’s history,

The Bridgestone Group’s “circle aesthetics” is areexamine its identity in common with its productvisual series that express its ambitions toward a

and advertising design, and apply it to future brandsustainable future, focusing on the functional beauty

expressions. The issue is used to communicate theof Bridgestone’s products, including tires, bicycles

Group’s design initiatives externally and is sharedand sporting goods, with a particular emphasis on

throughout the company.

BRIDGESTONE DESIGN DECLARATION
ブリヂストンデザイン宣言

the circle and circulation. The Bridgestone Design
started studying brand expressions in 2018 and won
many competitions in Japan and overseas for its“circle aesthetics” portrayed in a calendar. Today, as
one of Bridgestone’s unique brand expressions, it is
widely displayed at each business locations and in
the Group’s publications.

Special Exhibition “circle aesthetics”

Expanding into spatial design
The Bridgestone Design has also been participating in space design of Bridgestone Innovation Park in
Kodaira, Tokyo to provide a Bridgestone-like customer experience. All aspects of Bridgestone Innovation
Park – the facility design, entrance, workspace, signage systems, and various exhibits – contribute todelivering a new Bridgestone brand identity and an engaging Bridgestone-like experience.

The Bridgestone Design will continue to explore the essence of design to contribute to the Group’sbusiness strategy, enhance brand value, further innovation and build trust with various stakeholders
toward interaction with empathy.

63 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 64

Realization of Mid-Long Term Business Strategy with Sustainability at the CoreIntellectual Property Strategy
Visualization to manage and utilize IP
landscapes

world. The IP organization assigned to each SBU establishes andAs the initiator of the IP Landscape Promotion Council1,

operates a globally optimized management system that clarifies

Bridgestone is making efforts to encourage companies tothe responsibilities of the IP departments regionally and globally.

utilize and promote IP landscapes, which contributes totransform the utilization of IP and intangible assets and

The Bridgestone Group bases its IP strategy on theRegular meetings are held among the IP departments of each

improving the business competitiveness of Japanese industry.

risk management. It strategically combines various forms

visualization and management of IP and intangible assets

SBU to exchange information on portfolio development, manage

The Company also participates in an activity and a committee2

of IP developed through its tire and other manufacturing

using IP landscapes. It has accumulated considerable

global concerns and leverage IP landscapes. This strengthened

led by the Cabinet Office and the Japan Patent Office toexperiences – including knowledge, know-how andknowledge and expertise that gives it a competitive

governance ensures swift operational execution.

promote the nationwide utilization of IP and intangible assets.

patents – to promote synergies.

advantage across its entire value chain, from understanding

The Bridgestone Group views Intellectual Property (IP) andintangible assets as one of vital management resourcesthat advances its competitiveness, and is working to

It also contributes to policies for the utilization of IP andmarkets to creating value with a focus on R&D.

Verifying return on investment using ROIC

intangible assets in Japanese industry.

a major pillar of business growth, including the building of

The Group is promoting strategic use of IP based on

business models that convert big data into business value,

the concept of the Bridgestone IP mix, which combines

The Bridgestone Group promotes efficient and strategic

Going forward, the Group will accelerate the IP mix in its core

the concept and approach to risks management required

IP including knowledge, know-how and patents tomanagement of IP investment through a Plan-Do-Check-Act

business, which is the foundation of its entire business. It willfor IP are also changing. The Group will contribute to thecreate business value by looking at its strengths and(PDCA) cycle to measure and verify the investment impact of its

also actively promote DX of its businesses by utilizing artificial

realization of its vision by promoting both offensive andvulnerabilities from two perspectives: an inward-looking

IP. The ROIC index, a KPI of the Group’s management, is a results-

intelligence (AI), while continuing to strengthen IP support for

defensive measures to utilize IP and intangible assets

IP landscape to visualize how the Group’s IP is distributed

driven KPI that calculates the value of IP in each business area,

the growth business. In the exploratory business, the Groupand reform risk management to sustain competitive

throughout the value chain, and an outward-looking IP

and the number of IP mix formulations and contracts concluded

supports the creation of IP by leveraging the IP landscape,advantage and respond to risks from an IP perspective inlandscape to grasp its position in relation to competitors

is a factor-oriented KPI. Together, both KPIs measure and verify

starting with the core IP that it already owns. The Group will

new business opportunities that leverage its strengths

and the distribution of IP in the industry.

the business value conversion from IP utilization.

design and build its global IP mix so that these IP families will

Furthermore, as the strategic utilization of IP is becoming

generate synergies with its business operation capabilities.

such as DX utilization.
Inward-looking IP landscapeOutward-looking IP landscape

Visualization of IP distributed throughout
the internal value chain

Understanding Bridgestoneʼs position basedon competitive and industry IP analysis
Industry

Engineering
chain

Planning

Development

Procurement

Manufacturing

SupplySales

ServicesModeldesignPerformance
evaluation

Inspection

Qualityassessment

Administration

Administration

Decisionmaking

Massproduction
designAdaption
to mass
production

Task
design

Sales
model

Systembuilding

Marketunderstanding

Basic
designEvaluation

ProcessdesignSCM
designModeldesignKnowledge

Knowledge

Knowledge

Knowledge

Knowledge

Knowledge

The Group will also expand its scope beyond the tire industry

Based on the visualization of IP using IP landscapes, andand proactive responses to seize opportunities.

analyses of industry and market trends, the Bridgestone Groupto include the entire mobility to enhance sensitivity to IP risks

promotes design of IP mixes that contribute to improved
competitiveness that supports future business expansion. In

Customers/Society

Value chain

Expansion of IP and intangible asset initiatives

2021, the Group focused on IP utilization and risk response withparticular emphasis on supporting the solutions business, its
growth business, and on developing IP strategies in collaboration
with R&D and business divisions in more than a dozen themes,Competitors

Bridgestone

including aviation solutions and mining solutions.

Case studies: Mining solutions, fleet solutions
The Bridgestone Group’s strength lies in the performance and durability of its Dan-Totsu tires, which prevent tirerelated operational problems, such as punctures and breakdowns, and supports safe driving of customers in

Taking both inward-looking and outward-looking perspectives results in a holistic viewof Bridgestoneʼs strengths and DNA

mining and commercial fleet operations. The Group is building an IP mix that achieves competitive advantage by
combining various IP, such as Internet of Things (IoT) and digital tools, based on its strong patent network. The
Group also leverages its owned IP to further grow its solutions business by offering solutions to an increasingly

Strengthening the IP investment governancestructure
The Bridgestone Group’s IP departments routinely analyze andpropose solutions to issues faced by the business divisions. To doso, they utilize IP landscapes to strengthen collaboration. This hasenhanced a communication platform for discussing IP utilization
among the IP departments, business divisions and senior
management. The Group is also building a structure that enables

wide range of customers.

senior management to effectively supervise IP utilization. The
Group is strengthening collaboration throughout the entire
process by transforming from a conventional organizational
structure arranged according to function (application, researchand liaison work) to a business-contributing organizational
structure with both IP management and utilization in the1

development in Japan and contributing to the public interest at large.
2

The Group has development and design bases around the

65 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated ReportA council with the Japan Patent Office as an observer, with the aim of enhancing the business competitiveness of member companies by promoting IP
landscape and increasing corporate value by promoting the creation of new value through the search for knowledge, as well as promoting sustainable social

solutions business’ front lines with each establishing an IP mix.

Committee for the Cabinet Office’s “Study Group on Effective Disclosure and Governance of IP Investment and Utilization Strategies” and the Japan Patent
Office’s “Research and Study on IP Utilization Methods that Contribute to Creating Customer Value and Strengthening Competitiveness.”

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 66

Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Human Resources Strategy
Human resources strategy
The Bridgestone Group places great importance on

The Group is confident that transforming each

its employees, which are essential for the sustainable

individual employee’s mindset and behaviors toward

growth of its business, and believes the success of

becoming a sustainable solutions company willits diverse talent will lead to the creation of value as

lead to deeper employee engagement and foster a

expressed in the “Bridgestone E8 Commitment.” Thecorporate culture that provides social and customer

Group maximizes the value of individuals throughout

value in a sustainable manner. Furthermore,

its strategy, while appropriately aligning and linking

the Group has established talent development

human resource approaches with its Mid-Long Termand human resources programs tailored to theBusiness Strategy.

characteristics of each region.

improve organizational capabilities. BSAM also holds an

BSAM is also committed to ensuring employees haveannual Career & Development Week to promote career

ongoing dialogue with their manager about theiradvancement across its operations and ensure employees

performance and development, and receive the support

know about the opportunities it provides. To enable morethey need to maximize their contributions. To formalize

employees to participate in this program, an instructor-led,

this commitment, a new performance management

interactive, virtual environment was introduced in 2021,

framework called AMP (Accelerating My Performance) was

resulting in a 50% year-on-year increase in participants.

introduced in 2021. AMP is designed to ensure employees
receive the ongoing feedback and support they need toachieve their professional goals. Through AMP, BSAM has
created an environment where employees and managers
continuously communicate and share feedback to ensure
employees are delivering great results and progressing onreaching their career goals. BSAM will continue to improve
AMP over the coming years to further enhance the cultureof agile, continuous performance and development■ Initiatives in Japan
Bridgestone has branded its human resources

The Company also launched an engagement survey intransformation as B-HRX and is working to create an

2020. It is an evolution from traditional employee surveys

environment where the company and employees

to gauge and enhance employee engagement. Eachcan take on challenges and grow together. B-HRX

site in Japan is taking the initiative to create a betterfocuses on maximizing organizational capabilities andworkplace by analyzing survey results, identifying issues

results by developing diverse talent and leveraging

and implementing improvements. Opportunities forindividual strengths. It seeks to clarify the functional

dialogue between management and employees are also

and organizational capabilities and human resources

provided to maintain and create an organizational culture

requirements necessary to achieve its Mid-Long Termthat motivates employees.

Business Strategy, to provide training opportunities andoptimally allocate employees.

In terms of people systems, Bridgestone has developed

feedback.
BSAM is also committed to helping employees improvetheir mental/emotional, physical and economic wellbeing and offers numerous tools and partnerships. In
2021, BSAM launched an initiative called the Wellbeing
Space. This initiative provides employees with an easy andeffective way to access resources available when neededby employees to promote a healthy lifestyle and support
them through life events.

a flexible and diverse talent management program that

■ Initiatives at BSEMIA

In line with its business strategy, the Company is

combines a job-based program based on the roles anddeveloping a system of self-directed career development

responsibilities required to implement business strategy

BSEMIA has implemented tools including 360° feedback,survey was to develop a systematic action plan focusing

and personal growth, such as reskilling employees towith a conventional program that aims for medium- to

mentorship programs and targeted training paths

on four well-being themes: psychological, social, physicaldevelop digital capabilities and fostering skills throughlong-term development through diverse experiences.

with e-learning courses, to support its employees inand work environment. Each quarter, BSEMIA selects one

learning and hands-on experience. In addition, it

It also has introduced a job-matching program, an open

their development. Additionally, BSEMIA has worked

theme and provides information and training to help its

expanded its next-generation leadership development

posting program, and other programs to match individuals

on fostering a culture that emphasizes and stimulates

employees improve their overall well-being.

program, which began in 2020, to the global Group as

willing to take on challenges with positions that leverage

the Bridgestone Next 100 in 2021. It is promoting thetheir expertise and skills. It will continue to support thesuccession program in which each senior management

growth of individuals who are taking the initiative in theirand executive level collaborates from the perspective ofcareer and encourage them to lead full and prosperous

strategy and global optimization.

lives through self-fulfillment in the company.

■ Initiatives at BSAM

communication by hosting town hall meetings, introducing
a recognition system and a goal-setting system, and also
conducting monthly pulse surveys. The monthly pulse
survey quantitatively measures engagement and selfdirected action of employees, and monitors trends overtime and at each workplace. One application of the pulse

A structural cultural change management program
has been implemented in manufacturing sites overthe last year and which has resulted in well-trainedand empowered employees, autonomous teams andsignificantly enhanced operational results.

■ Initiatives at BSCAP

Talent management and development are criticalexperience and ensure the right capabilities are available

In 2020, BSCAP implemented the philosophy of Safety First,

Additionally, a cross-country task force was created inelements of the human resources strategy at BSAM. By

to support the business strategy.

Show Care and Stay Connected and introduced various

2021 to develop regional guidelines on hybrid work andactivities that prioritize the well-being of employees in

employee well-being to provide employees with flexibility

all 10 countries where it conducts business. BSCAP also

and to improve work-life balance.

investing in its people, BSAM aims to ensure employees
are continually developing their capabilities, progressing
towards their career goals, and ultimately choose tostay within the Group over the long-term. Its dedicatedtalent management and development teams design,build and deliver talent solutions in partnership withbusiness divisions to continuously improve the employee

BSAM offers many development opportunities to enhanceeach employee’s career and strengthen its organizational
capabilities. In addition to the extensive catalog of training
and development programs available to all employees,
BSAM also offers a number of accelerated development
programs to quickly increase employee skills and

67 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Reportintroduced a survey on employee resilience focused on
five categories: communication, technology, customers,
connections and well-being to assess the organization’s
ability not only to overcome adversity but to emerge
stronger and better prepared to take on new challenges.

An integral part of BSCAP’s talent management process
is the annual Career Development & Discussion (CD&D)
process, when employees and their managers identify
their strengths and development actions and they are

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 68

empowered to take ownership of their careers. Launchedhigh-potential employees further develop their strategic

In 2021, BSAM also launched its “Free to Be” movement•

BBOLD – African American/Black employees

in 2020, CD&D is being expanded to more employees eachthinking and decision-making skills. BSCAP’s BE INSPIRED

that helps employees understand the importance ofyear.

campaign is creating a culture of continuous self-learning

inclusion and bringing one’s whole self to work. It will•

BWIN – Women employees

through more than 200 e-learning courses. In late 2020, it

continue to promote initiatives to increase racial and•

BNEXT – Millennial employees

also started the Critical New Skills for the Future initiative –gender diversity, embed DE&I into the business, and create•

BBRAVO – Veteran employees

a bottom-up initiative which empowers employees in its

an even more equitable and inclusive work environment.

•

BUNIDOS – Latinx/Hispanic employees

group companies to participate in each country’s workshop

These priorities will be accomplished with direct employee

and identify skills that will be required for upskilling or

input, including from its employee resource groups (ERGs):•

BPROUD – LGBTQ+

In the area of talent development, BSCAP introduced aTraining & Development KPI of a minimum of 40 training
hours per employee per year in 2021 and 60% of employees
achieved the KPI that year. Specifically, BSCAP designed its
40-hour, High-Potential General Management Program inpartnership with Asia’s top-ranked business school to help

reskilling.

■ Initiatives at BSEMIA
More information on talent development and human resources programs is available online.

DE&I
Respect for DE&I is a key element of the Bridgestone Group’s

continue to advance initiatives that address potential

Global Human Rights Policy and practiced in various ways

disparities and other workplace and social issues related toacross the operation. Equity was added to the 2022 revision

equity.

of this policy to reinforce and clarify its commitment toproviding equitable opportunities, and the Group will

BSEMIA believes that a diverse work environment

In South Africa, Bridgestone South Africa (Pty) Ltd.

creates a better understanding of its customers, greater(BSAF) achieved Level 1 Broad-Based Black Economic

employee engagement, decision-making that includes

Empowerment (B-BBEE) Contributor status which wasdiverse perspectives, and innovative ideas that lead tothe highest rating in the certification. This recognizes

better outcomes. It is working to create an environment

BSAF’s efforts to include African people in the workforce,

where all employees feel safe and included so they can

support African businesses and give back to underserved

contribute at their best. A key element of this work is more

African communities. BSEMIA was also recognized as afully engaging ERGs to involve employees in building an

Top Employer and Great Place To Work in 2022 in multiple

even-more inclusive culture. In 2022, BSEMIA will promote

countries.

initiatives to respect diversity with a particular focus on
three groups: gender, seniority and experience.

■ Initiatives in Japan
Bridgestone respects differences in cultures and customs

mentor system was introduced in 2021 in which leadersand has established a culture that allows all employees towork together to support the career development of female

feel safe and included so they can contribute their best.

manager candidates.

BSCAP is undertaking DE&I initiatives based on the

In addition, Bridgestone received the highest rating of Gold

Right Skills. Its intent is to draw out the ambitions andIn Japan, Bridgestone recognizes the need to improvefemale representation in its management structure, andis taking actions to achieve this goal. The Company set atarget to increase the ratio of women in all management
positions (including those who are seconded to Bridgestone

for four consecutive years in the PRIDE Index, an indicator of
how companies have implemented initiatives to promote
LGBTQ+ inclusion in the workplace.

Corporation) from the current 2.6% to 7.5% by 2025. A■ Initiatives at BSCAP
philosophy of Right Person in the Right Position with theabilities of individuals to the fullest and identify the mostsuitable talent for each position.
BSCAP set an aspirational goal to have women in 20%
of management roles by the end of 2022. On each
International Women’s Day (IWD) since 2019, BSCAP has■ Initiatives at BSAM

conducted various awareness and educational campaigns
for employees to communicate the value of women in the

BSAM’s DE&I strategy consists of three key areas:

workplace and society. BSCAP also promotes a gender-

workplace, workforce and marketplace. In each area,

equal society by encouraging women to play an active role

it aims to provide an inclusive work environment,in all BSCAP companies and encouraging these companies

educate leaders and employees, and create equitableto engage women more fully.

opportunities. To help achieve these goals, in 2021
BSAM conducted unconscious bias training as an
introductory learning program related to DE&I for overMore information on DE&I initiatives is available online.

3,600 participants. BSAM is also committed to improving
transparency by reporting various initiatives and progress
through its DE&I Annual Report.

69 | Realization of Mid-Long Term Business Strategy with Sustainability at the Core

Bridgestone 3.0 Journey 2022 Integrated Report

Realization of Mid-Long Term Business Strategy with Sustainability at the Core | 70

Build Trust to Propagate
Value Co–creation

Building Trust���������������������������������������������������������������������������� 72

Build Trust to Propagate Value Co-creation

Motorsports ������������������������������������������������������������������������������ 73

Building Trust

In Harmony with Nature ������������������������������������� 74–76
In Harmony with Communities ������������������� 77–79

The “Bridgestone E8 Commitment,” which the Bridgestone

dignity for all,” the Group will continue to aim to be inGroup has set forth as the axis to drive management

harmony with nature and communities.

while earning the trust of future generations toward therealization of its vision, cannot be accomplished by theGroup alone. In an era of co-creation, in which a company
collaborates with various partners to create value, it must
continue to be a trustworthy company and brand to earn
the empathy of many.

Furthermore, as a tire manufacturer, the Group willcontinue to be responsible to support the safety and peaceof mind of people and mobility, based on its fundamental
principle of “tires carry life,” and it is represented by“Ease: Committed to bringing comfort and peace ofmind to mobility life.” By engaging in a wide range of

The Group has been proactively working to solve issues

global and sustainable motorsport activities – including

in local communities by leveraging the strength of its

the Bridgestone World Solar Challenge, one of the

global network, including introducing environmental

world’s leading solar car races – the Group is committed

conservation activities and traffic safety education

to “Emotion: Committed to inspiring excitement andaround the world. Through its commitments of “Ecology:

spreading joy to the world of mobility.” By doing so, theCommitted to advancing sustainable tire technologies

Group will contribute to the development of safe, withand solutions that preserve the environment for future

peace of mind, and fun car, motorcycle, and motorsport

generations” and “Empowerment: Committed to

cultures, all the while fostering trust as a preferred partner

contributing to a society that ensures accessibility andfor society, partners and customers.

Sustainability Framework
The Group has systematized its approach to sustainability as its Sustainability Framework. Based on thisframework, it has clarified the actions it will focus on in the future. Co-creating value with stakeholders
is essential in fulfilling the eight values of the “Bridgestone E8 Commitment” while achieving both socialand customer value through its Sustainability Business. To build a deeper relationship of trust that
propagates value co-creation, the Group is actively engaged in social contribution and other activities
with local communities in line with this framework. The Group is also promoting initiatives that form an
indispensable foundation for a responsible company. These initiatives go far beyond simply avoiding
risk to finding innovative ways to transform risk into growth opportunities to establish Management
Fundamentals for value creation.
More information on the Sustainability Framework is available online.

Major sustainability focus items
・Develop readiness toward carbon neutrality

Sustainability
Business・Expand circular economy business activities

・Enhance community engagements/partnerships (i.e.,
biodiversity conservation, global road safety, sustainablemotorsports)

Build trust to propagate
value co-creation
Management Fundamentals
for value creation

・Enhance stakeholders/ESG engagement through integrated
reporting・Respect for business and human rights, DE&I
・Strengthen corporate resilience (i.e., governance, compliance,risk management, procurement, occupational health andsafety, quality and customer value)

Build Trust to Propagate Value Co-creation | 72

Build Trust to Propagate Value Co-creation

Build Trust to Propagate Value Co-creation

Motorsports

In Harmony with Nature

Bridgestone Group involvement in motorsports

The Bridgestone Group aims to continue existingbiodiversity and to identify priority issues to be

The Bridgestone Group views promoting andwith event organizers, vehicle manufacturers andin harmony with nature by maximizing its

addressed. The concept of being in harmony with

developing motorsports culture as the point of origin

motorsports professionals. It sees motorsports as ancontribution to biodiversity (ecosystems, species

nature, which is set forth in the Group’s long-term

for tire manufacturers. It also views motorsports

opportunity to enhance the value of its products andand genetic diversity) while minimizing the impact

environmental vision targeting 2050 and beyond,from a sustainability perspective, and wants to link

the technologies underpinning them, as well as toof its business activities on biodiversity.

refers to the mindset of minimizing the impact ofmotorsports to its efforts to address social issues

develop the talents of engineers. By advancing andacross the value chain, including advancing andrefining these technologies in demanding motorsportrefining its own technologies and the supply chain.

environments and through the extreme pursuit of tireTo keep providing “Driving Excitement” in 10 years, 20
years, and beyond, the Bridgestone Group strives toachieve its commitment for “Emotion: Committed toinspiring excitement and spreading joy to the world of
mobility” stated in the “Bridgestone E8 Commitment”
by providing Dan-Totsu Products and engaging in awide range of global, sustainable motorsport activities

performance limits, Bridgestone is able to develop
and test technological innovation.

the relationship between business activities andactivities. The Group is promoting initiatives toachieve being in harmony with nature throughout
its business activities.

conscious with the emergence of electric andit aims to reduce CO2 emissions throughout the valuecar, motorcycle, and motorsport cultures together

Convention on Biological Diversity, understanding

biodiversity and conducting other contributing

for races and events that are more environmentally

Initiatives supporting motorsports culture

development of safe, with peace of mind, and funof the Conference of the Parties (COP10) to thelosses to the ecosystem as a whole by restoring

In recent years, motorsports have gained attentionhydrogen engine vehicles. The Group is accelerating

motorsport events, the Group contributes to theterm goal adopted at the 2010 Tenth meetingbusiness activities on biodiversity while offsetting

Motorsports rooted in sustainability

based on these two approaches.

By supplying tires to, participating in and sponsoring

The Group‘s activities are based on the long-the creation of sustainable motorsports. For example,
chain by increasing the use of recycled and renewablematerials for racing tires, developing long-distanceand lightweight tires, and promoting the recycling ofused tires.

Powering solar cars and future engineers
Powering solar cars and future engineers

Bridgestone has supported the world’s foremost
Bridgestone has supported the world’s foremost
solar car race, the Bridgestone World Solarsolar car race, the Bridgestone World Solar
Challenge,
as aa titletitle sponsor
sponsor since
since 2013.
2013. Powered
Powered
Challenge, as
only byby thethe energy
energy ofof thethe sunsun toto travel
travel more
more than
than
only
3,000 kilometers over five days from Darwin indeveloping the world’s most highly energyefficient solar cars. Bridgestone provides tires forsolar cars to many participating teams, to support
the ambitions of aspiring future engineers andhelp drive the evolution of mobility technologies.

■

Example of minimizing footprint: Water withdrawal reduction activities through in-house andregional cooperation

The Bridgestone Group recognizes that water is

To highlight a specific achievement, the Buenos

young engineers from all over the world takeon the challenge of designing, building andan essential resource for the continuation of its

Aires plant located in a water stress area inbusiness, and that it has a responsibility to use

Argentina, reduced water withdrawal per unit ofefficient solar cars. Bridgestone provides tires forwater in a sustainable manner. Based on the Water

production by 55% in 2021 compared to a 2005

Stewardship Policy established in 2020 for equitablebaseline. Furthermore, in 2019, the plant beganand sustainable water use, the Group will develop

a partnership with cement manufacturer Lomaand implement specific water stewardship plans by

Negra to reduce overall water withdrawals in the2030 according to each local environment, focusing

Llavallol suburb of Buenos Aires. Using the reverseon its manufacturing facilities located in water

osmosis water filtration system within its operationstress areas1. As of June 2022, seven of the 25 sites

site, BSAR recycles wastewater generated fromin scope had completed the development of water

its operations, and provides Loma Negra withstewardship plans.

approximately 1,200 m3 per month of filtered waterNorthern Australia to Adelaide in South Australia,

developing the world’s most highly energy-

solar cars to many participating teams, to support
the ambitions of aspiring future engineers andhelp drive the evolution of mobility technologies.

typically for industrial use in manufacturing cement.

1

73 | Build Trust to Propagate Value Co-creation

Bridgestone 3.0 Journey 2022 Integrated Report

Manufacturing facilities that have water-related risks due to their locations with the risk of deterioration of fresh water resources in terms of quantity and quality.

Build Trust to Propagate Value Co-creation | 74

The Bridgestone Group also harvests and utilizes

in Bridgestone Australia Ltd. can currently harvest

In 2004, the Group established forest maintenanceconservation to local schools. Plant employees

rainwater at several plants to reduce the impact ofover five million liters of rainwater per year toactivity zones and began activities, which are now

also actively engage in ecosystem restorationwater withdrawal. For example, its Bandag Factory

support local manufacturing processes.

being carried out at nine of its sites in Japan as

activities, including those for longleaf pine trees, a

the ECOPIA’s Forest Projects. In 2021, events were

native plant important to a variety of organisms. In

held at the ECOPIA forests in Hikone City, Shiga

2021, the Group conducted biodiversity education

Prefecture, and Kurume City, Fukuoka Prefecture,

and awareness activities for more than 2,100 local

in collaboration with local governments, and 78

residents.

■ Example of enhancing contributions: Promoting Biodiversity Program
The social and environmental impacts of climate

its biodiversity contribution activities by sharing

and 25 people participated respectively. By treechange, resource scarcity and biodiversity loss

case studies of activities underway worldwide

thinning forests, observing plants and animals, andhave become more pronounced in recent years.

with the entire organization. By contributing toforest cleanups, the events help participants learn

In light of this, the Bridgestone Group aims to

the conservation and restoration of plants, animals

about the roles and functions of forests and thecontribute to solving these social issues throughand their habitats, and by collaborating with

importance of biodiversity.

its business activities. The Group is implementing

various stakeholders, the Group is committed toecosystem conservation and restoration activities

preserving the environment for future generations,at its manufacturing sites around the world toas stated in the “Ecology” of the “Bridgestone E8

help ensure a healthy environment for current andCommitment.”

future generations.

PT. Bridgestone Sumatra Rubber Estate (BSRE),
which operates a rubber plantation in Indonesia,
organized a biodiversity conservation event in
2021 to address the threat of landslides caused byheavy rains that could damage the surrounding

The Aiken plant, a tire manufacturing site in South

ecosystem. Approximately 200 people participated

Carolina, United States, has been collaborating forin the event, including local students, local

over 10 years with the University of South Carolina

government and BSRE employees. A program

to deliver educational programs on biodiversity

teaching the importance of biodiversity was also

The Group has approximately 160 manufacturingprovided to help raise awareness of biodiversity

Launched in 2019, “In Harmony with Nature –sites and R&D facilities and conducts businessin conjunction with activities such as cycling, tree

Promoting Biodiversity Program” annually assesses

in more than 150 countries. At its sites aroundplanting, releasing fish and cleaning up in andthe level of biodiversity contribution at each site

the world, the Group promotes biodiversity

around a local river.

using nine key activity indicators, including theconservation activities that are rooted in the local

number of environmental education programs

community through dialogue with local residents.

offered for children, partnerships with local schools

By doing so, the Group conveys the importance ofand non-governmental organizations (NGOs),

biodiversity externally and internally, leading to

the acreage of off-campus areas managed as

further contributions. It also shares information on

natural habitats, and other factors. The Group also

its biodiversity program and other activities withhighlights each site’s efforts by recognition based

its wide-ranging internal network.

1on the results of these evaluations and promotes

A longleaf pine forest, one of the biodiversity
conservation projects of the Aiken plantMore information on ways the Group is working toward being in harmony with nature is available online.

A scene from an ECOPIA’s Forest event in Kurume, Fukuoka

1

As of March 1, 2022.

75 | Build Trust to Propagate Value Co-creation

Bridgestone 3.0 Journey 2022 Integrated Report

Build Trust to Propagate Value Co-creation | 76

Build Trust to Propagate Value Co-creation

In Harmony with Communities
As a global organization with operations in more

Supporting communities is part of the Group’s

In the China, Asia and Pacific region, BSCAP isprograms together with Safe Kids China. Employee

than 150 countries, the Bridgestone Group is uniquely

Sustainability Framework as it builds trust tosynergizing regional road safety initiatives as one

volunteers who attended training organized by Safe

positioned to co-create long-term social and customer

propagate value co-creation. With such initiatives, theprogram to enhance both community and employee

Kids China participated in field observations to collectvalue in communities around the world.

Group is committed to “Empowerment: Committed

engagement. The Group works with various partners

data on road usage. These observations are used in

to contributing to a society that ensures accessibility

and implements road safety programs best suited forthe traffic-safety education curriculum offered at local

and dignity for all” and “Ease: Committed to bringing

the specific needs of each country or region.

schools.

Partnered with Rotary Youth Driver Awareness (RYDA),

Furthermore, in Phuket, Thailand, the Bridgestone

the Group hosted road safety workshops for young

Global Road Safety project was launched to raise

drivers in schools in Australia and New Zealand. In

children’s awareness of traffic safety and safe road2021, the program provided learning opportunities tobehavior. Cooperating with the Global Road Safety

more than 41,000 students. It promoted good habits

Partnership and local partners, the program included

and motivated them to take responsible action as

events such as Road Safety Day with interactive games

drivers and passengers to stay safe on roads.

and contests calling for safe road behavior among

It does so by working collaboratively with various
stakeholders such as partners, customers andemployees to develop sustainable community
solutions that positively impact a wide variety ofcultures facing unique challenges. In addition to theselong-term efforts, when urgent support is essential— for example, in times of disaster — the Group also
steps up to immediately support its communities.

comfort and peace of mind to mobility life” of the“Bridgestone E8 Commitment.” To achieve this aim,
the Group focuses its strengths and competencies
on building safer, healthier communities and making
education more accessible and inclusive for current
and future generations.

In China, the Group is promoting traffic-safety■ Road safety education
More than 1.35 million died in traffic-related accidents

community are conducted as part of the “Ease,”each year1, thus road safety is widely recognized aswhere the Group is committed to bringing peace of

one of the global common issues. Given its foundation

mind to mobility life. To promote “Empowerment,”

as a tire company, the Bridgestone Group understands

the Group is educating the next generation on roadthat road safety is essential to mobility systems andsafety and its importance in improving quality of life

resilient communities.

in local communities. The Group is also enhancing

Since proper maintenance is important for safer
transportation, safety awareness activities suchas tire-safety inspections for customers and thestudents. The Group also improved local infrastructure
to enhance the safety of school commuting routes.

traffic-safety education for employees to raise safety
awareness throughout the value chain, thereby
contributing to traffic safety not only through its
products and services, but also through its daily work.

Initiatives
Think Before You Drive, a safe-driving awarenessInteractive traffic safety lessons are conducted with

program launched by BSAM in 2005, aims to instill

the Bridgestone Test Dummy characters. To date,in drivers the importance of traffic safety through450 workshops have been delivered to over 33,000

educational programs and materials. The program

students in more than 500 schools in and aroundconveys the importance of following the basic rules

Poznan.

essential for safe driving, such as always wearing
a seatbelt and keeping tires aligned and balanced.
Employees in Mexico, Costa Rica, Colombia and■ Accessible and inclusive education
Believing that education is important for improving

education and technical and vocational training, thepeople’s quality of life and developing theirGroup applies its strengths in tire manufacturing andprofessional skills, the Group supports inclusive andsales to offer a variety of training programs that foster

accessible education in the local communities in which

the next generation of automotive maintenanceit operates. With a particular emphasis on primary

professionals.

Ecuador are partnering with universities andgovernment agencies to implement this educational

Initiatives

program for students and travelers with the goal of
reducing traffic accidents and dangerous driving.

In Japan, Bridgestone Corporation offers thedifferent backgrounds, cultures and customs. In 2021,”Environment Hands-On Learning Program,” wherethe ”Environment Hands-On Learning Program” was

In Poznan, Poland, employee volunteers have been

students can learn the difficulties and importance

conducted 12 times and the ”Global Communication

involved in traffic safety education since 2008.

of balancing business and the environment throughSkill Program” was held nine times. A total of 1,809

environmental initiatives in production. It also runs

students from elementary and junior high schools all

the ”Global Communication Skill Program,” where its

over the nation participated in these events.

employees share their experiences on the difficulties
and importance of communication with people from1

BSAM is addressing the nationwide shortageof Automotive Technicians in the United States

Source: “Global status report on road safety 2018,” World Health Organization

77 | Build Trust to Propagate Value Co-creation

Bridgestone 3.0 Journey 2022 Integrated Report

Build Trust to Propagate Value Co-creation | 78

by providing training on the next generation ofCenter in Nashville, Tennessee, and Bridgestone

automotive maintenance technology. Working with

Academy of Applied Engineering & Technology at

community partners and educational leaders, BSAM

East Community Learning Center in Akron, Ohio. Bothsupports Maplewood High School Automotive Training

schools offer a four-year curriculum that includes
hands-on learning in facilities that are modeled
after Firestone stores and instruction by Grouptechnicians to help students build careers in theauto maintenance industry. In 2021, more than 185
students across BSAM participated in the program.
At Maplewood High School, more than 45 graduates
have been employed in the automotive industry, andat East Community Learning Center, more than 50%
of program participants earn Automotive Service
Excellence certifications before graduation.

■ Other initiatives
Since its founding in Japan in 1931, the Bridgestone

In 2021, as part of initiatives to realize a symbiotic

Group has supported activities that improve the lives

society through sports, the Group held three Inclusiveof individuals and communities. These efforts are

Sports Days at the Yokohama plant for 93 people withknown collectively as “AHL,” or Active and Healthy

disabilities, the elderly and its employees to enjoy

Lifestyle. AHL activities help build a symbiotic society

sports together.

in which diverse people recognize and help eachother. Such a society encourages all people to behealthy in mind and body, make the most of theirindividuality, and achieve self-fulfillment. Toward therealization of this symbiotic society, the Group aims
to solve social issues faced by the elderly and people
with disabilities by co-creating solutions with local
communities and various partners.

BSEMIA promoted healthy living among its employees
by regularly disseminating information on exercise
through the digital platform B-Olympic. Employees
jointly engaged in walking, running and cycling,achieving a distance of 1.5 million kilometers in 2021
and donating approximately 145,000 EUR, an amountraised corresponding to the total distance employees
travelled, to 15 local cancer charities.
Bridgestone Asia Pacific Pte. Ltd. (BSAP) and
Bridgestone Tire Sales Singapore (BSTSG) supported
the efforts of Willing Hearts during the COVID-19
pandemic to continue delivering meals to those in
need. The companies also provided Willing Hearts
with tires for 10 delivery vehicles and conductedawareness activities on safe tire use and traffic safety.
In 2021, BSAP and BSTSG employees donated 120 bagsof daily necessities and helped provide the meals tothe people supported by Willing Hearts.
More information on ways the Group is working
toward being in harmony with communities isavailable online.

79 | Build Trust to Propagate Value Co-creation

Bridgestone 3.0 Journey 2022 Integrated ReportManagement
Fundamentals
for Value Creation
and Corporate
Governance

Safety, Industrial Hygiene. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81–82
Human Rights, Labor Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . 83–85
Compliance, Fair Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86–87
Business Continuity (BCP), Risk Management . . . . . . . . 88–89
Topic: Climate and Nature-related Risk Management
and Responses to TCFD and TNFD. . . . . . . . . . . . . . . . . . . . . 89–90
Procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91–93
Quality and Customer Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94–95
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96–99

Management Fundamentals for Value Creation

Safety, Industrial Hygiene
Mission■ Goals and KPIs

Safety First, Always

To achieve its Safety Mission Statement, the Bridgestone Group annually measures its safety performance and

At Bridgestone, we make safety a business value. Creating a safe working place for all is everyone’s
responsibility. We promote safety activities throughout the value chain.
The Bridgestone Safety Mission Statement applies

This mission is particularly important to protect theequally to employees, contractors and visitors. In every

health and safety of the Group’s employees andBridgestone Group operation around the world, thecontractors by applying the higher safety standards, as

Safety Mission Statement is prominently displayed foralso expected by customers and stakeholders. These

employees, contractors and visitors to see. Throughstandards must continue to evolve as ergonomic risks

leadership, training and other educational approaches,increase with aging populations, regulations change,

the Group strives to continue to ensure all employees

and machinery and equipment ages. The Bridgestoneembody the Safety Mission Statement.

Group is also proactively promoting the high safety
culture within the new businesses it develops or
acquires.

monitors global best practices. The overall goal is to achieve top results in its industry. The Group is monitoring
results of the following KPIs and goals for 2023, which were set in 2020-2021:•

Global lost-time injury frequency rate1 for employees and temporary staff of 2.6.
(In 2021, this rate was 2.75.)•

Global lost-time injury frequency rate for contractors of 1.7.
(In 2021, this rate was 0.79.)•

Global serious injury rate2 for employees and temporary staff of 0.05.
(In 2021, this rate was 0.08.)•

Global serious injury rate for contractors of 0.15.
(In 2021, this rate was 0.11.)

In 2021, across the Bridgestone Group, there were 26 serious injuries2 among employees at its 4,815 production
and logistics sites and retail shops. Unfortunately, the Group experienced one employee fatality. The Group fully
participated in the investigation with local authorities and continues to work toward achieving perfect safety.
In 2022, the Group also expects to set three additional KPIs for occupational illness frequency rate (OIFR), riskassessment implementation status, and safety-maturity assessment score.
The Bridgestone Group’s safety-related data is verified by LRQA Limited, a third-party organization, to ensure
the accuracy and transparency of this information.

■ Initiatives
To further advance its safety culture, in August

non-production facilities such as retail shops. This

2021, the Bridgestone Group focused on uniform

information will yield strengths that can be best

implementation of safety measures for 12 specificleveraged globally, and weaknesses that can bemachines/equipment. In 2022, it is also defining

addressed to continue to improve safety KPIs.

global common safety requirements of heavy object
handling tasks and maintenance tasks.

safety rule compliance and safety education that will

The Group also started safety maturity assessments

determine how to best enhance employee safety

in production sites in 2022 and is preparing forawareness, capabilities and engagement.

More information on the Bridgestone Group’s safety and industrial hygiene initiatives is available online.

■ Management system
The Bridgestone Group aims to mitigate and control

Under the oversight of Global EXCO members,

all work-related risks. To achieve this goal, theincluding the Global CEO, the Fundamental Area

Group has established an internal global safety

Safety Group within the Global Quality Management

management system in reference to ISO 45001 andCommittee (GQMC) manages and responds to global

national standards/regulations. It also created 29

risks, challenges and opportunities of health andglobal standards on occupational health and safety, as

safety. Additionally, best practices are exchanged

well as disaster prevention, and these standards arewith SBUs and Global Business Support (GBS) throughintroduced to all sites across the organization.

Finally, the Group established a new Task Force forregular safety meetings.

1
2

Lost-time injury frequency rate = (number of lost-time injuries/total working hours) x 1,000,000.
Serious injury frequency rate = (number of serious injuries/total working hours) x 1,000,000.
The Bridgestone Group defines serious injuries as amputation (except some first joints of fingers and toes), complete loss of vision, fracture (excluding fingers,
toes, foot, hand or infrastructure) or hospitalization of more than one month.

81 | Management Fundamentals for Value Creation

Bridgestone 3.0 Journey 2022 Integrated ReportManagement Fundamentals for Value Creation | 82

Management Fundamentals for Value Creation

Human Rights, Labor Practices
Mission■ Management system

Advancing human rights and responsible labor practices
We will foster an inclusive culture in which all Bridgestone entities and locations adopt andapply ethical labor practices, build trust with our teammates, and model our respect fordiversity and human rights.
As part of its dedication to be a true global leader inall that it does, the Bridgestone Group is committed
to respecting human rights and advancing responsible
labor practices throughout its worldwide operations.
This commitment is the right thing to do andconsistent with the Group’s vision of providing
social and customer value as a sustainable

The Bridgestone Group’s commitment to respect humaninternationally recognized human rights principles into

rights is upheld and led by the Global Executive Committee

practice in each SBU and regional office. The HRLP WG is(Global EXCO), the highest-level committee overseeing

composed of senior Human Resources leaders from each

its business strategy and execution, which is chaired by

SBU, supported by dedicated human rights functional

the Global CEO. Under the direction of the Global EXCO,

resources based in the Group’s Tokyo headquarters. The

the Global Sustainability Committee (GSC) organizes

HRLP WG plans and manages human rights initiatives,

the holistic Sustainability Framework, and designs andsuch as the human rights due diligence process,

implements sustainability initiatives, including initiatives

implementing the Global Human Rights Policy, andrelated to human rights and labor practices. The Joint

assessing, preventing, mitigating and reporting humanGlobal COO Masahiro Higashi, who serves as the chairrights risks related to business conduct. The HRLP WG

of the GSC, directs the Group’s sustainability strategy,

also collaborates with the Sustainable Procurement

provides regular updates and proposals to the Global EXCO

Working Group and Environment Working Group to

on significant sustainability initiatives.

holistically address human rights issues across the value

As a part of the GSC, the Global Human Rights and Labor

solutions company. It is also fundamental toPractices Working Group (HRLP WG) is responsible forfulfilling the “Bridgestone E8 Commitment,” and to

putting the Group’s commitment to uphold the above“Empowerment” in particular, by contributing to asociety that ensures accessibility and dignity for all.

chain. The HRLP WG reports on its progress and plans to
the GSC at least quarterly to ensure senior management
is consistently informed of all significant human rights
developments and initiatives.

■ Goals and KPIs

To achieve this aim, the Group commits to work
collaboratively with stakeholders, including affected

To achieve its human rights and labor practices mission, the Bridgestone Group has established goals and KPIs, including:and potentially affected groups, to address andremedy adverse impacts from its operations, products
or services.
The Bridgestone Group’s Global Human Rights Policy
guides the organization as it strives to uphold human•

Conducting human rights risk assessment surveys in 80% of its operational sites by the end of 2022. Based on the•Strengthening its human rights due diligence system and processes throughout its operations. The Group anticipates thisoutcome of the assessments, the Group will ensure mitigation plans are in place for 100% of any identified risks by 2023.

commitment to be reflected in improvements in evaluations by several external indices.

rights principles through interactions with employees,
consumers, customers, suppliers, contractors andcommunity members wherever it conducts business.

Global Human Rights Policy

As reflected in its policy, the Group commits to respect■ Initiatives
2021 accomplishments

and support the UN Guiding Principles for Business

As the Bridgestone Group strengthens its humanand Human Rights (UNGPs) as well as the humanrights set out in the International Bill of Human Rights

This mission is important to the Bridgestone Group as(IBHR) and the International Labor Organization’s

stakeholders and society increasingly hold businesses,

Declaration on Fundamental Principles and Rights

and especially large global organizations, accountable

at Work. As the Group strives to meet and exceed

for their specific human rights commitments andinternational standards for business and humanactions. The Group proactively incorporates humanrights, its Global CEO approved revisions to therights initiatives into its business models and across

Global Human Rights Policy in May 2022 to clarify andits value chains, priorities, management policies,

strengthen its commitment to respect internationallyand business strategies. With these actions, therecognized human rights principles laid out in the

Bridgestone Group is creating social and customer

aforementioned international standards.

value and building trust with stakeholders.

rights due diligence system, it identified salient
human rights risks across its global operations throughwill be conducted in 2022.
Details of the two third-party assessments follow:
1.

Identification of human rights risk exposure

two different risk assessments by independent third-

through a holistic, risk-scoping project with third-

party organizations. These assessments incorporated

party risk analytics provider Verisk Maplecroft

external industry and geographic human-rights							

risk data, along with evaluations of the Group’s

A desktop assessment of the human rights risk

management systems, policies and practices to give

exposure across a subset of the Group’s owneda holistic picture of key industrial, geographical, andoperational sites was conducted by third-party

operational risks to which its business should pay

risk analytics provider Verisk Maplecroft. The list

particular attention based on the location and natureof risk indices assessed in the project included:of operations conducted at its facilities. Based on thechild labor, decent wages, decent working time,outcome of these assessments, the Group prioritizeddiscrimination in the workplace, freedom oflocations and developed data-driven plans for humanassociation and collective bargaining, indigenous

rights risk assessments in its operational sites, which

83 | Management Fundamentals for Value Creation

Bridgestone 3.0 Journey 2022 Integrated ReportManagement Fundamentals for Value Creation | 84

Management Fundamentals for Value Creation

Compliance, Fair Competition1.

peoples’ rights, migrant workers, modern slavery,

clarify potential impacts of its operations; humanoccupational health and safety, and right torights context in relevant geographies; relevant

privacy. Additionally, geographic, political, social,industry standards; and key rights-holders

industrial and our operational factors wereand stakeholders, 2) interviews with relevant

considered in identifying the operational sites

company staff across functions and systematicthat could be exposed to higher human rights

review against the list of human rights risks basedrisks. This assessment was utilized to prioritizeon the international standards, 3) assessment of

the Group’s due diligence activities based on

severity and likelihood of impacts, and 4) overall

independently validated risk exposure at its

assessment of the management system.

locations across the globe.
2.

Based on the outcome of these two human rights

Evaluation of its human rights risks andrisk assessments, the Group has identified its

management system through a risk assessment

salient human rights risks: working hours, non-project with third-party Business for Social

discrimination and equal opportunity, workplace

Responsibility (BSR), a leading global

harassment, forced labor, child labor, andorganization on sustainability		occupational health and safety. These are the humanInternal document reviews and interviews withrights domains that the Group believes, based on ainternal stakeholders were conducted by BSR

combination of geographical, regulatory, industrial

to evaluate the Bridgestone Group’s global

and operational factors, have the highest priority

human rights risk management system. The

across its operations and will be the primary focus

methodology of this assessment was aligned

in its human rights due diligence process for its own

with the UNGPs and entailed: 1) desktop review

operational sites.

of internal documents and external sources to2022 Plan
In 2022, the Bridgestone Group is significantly
accelerating its human rights due diligence activities.
In cooperation with BSR, the Group will conduct
human rights assessments to assess its facilities and to
improve overall assessment process and methodology.
This work will begin with three in-depth assessments
in representative sites across our geographic footprint
to identify any actual and potential risks that exist,
examine the current risk-management system, andplant in Saitama, Japan. The assessment, which
did not identify any human rights violations,provided in-depth information about the efficacy ofBridgestone’s human rights management system
and generated ideas for further refinement of its due
diligence process. Additional in-depth human rights
assessments, incorporating the knowledge gained
from the assessment in Saitama, will be conducted at
the Group’s tire plant in Indore, India, and its natural
rubber plant in Harbel, Liberia.

MissionEnsure excellence through compliance and integrity.
We build trust with all stakeholders by ensuring that ethical decision-making guides
responsible business practices across our operations.
The Bridgestone Group’s commitment to ethics,

This mission is important as anti-bribery and antitrust

compliance and integrity helps it continuously achieve

activities come under increasing scrutiny, along with

its Mission of “Serving Society with Superior Quality”

other matters such as sexual harassment and dataand supports its goal of building a best-in-class ethics

privacy, addressed in the Group’s Code of Conduct andand compliance program. As stated in the Group’s

Global Anti-Bribery Policy.

Code of Conduct, its commitment to integrity requires
each employee “to hold ourselves and our coworkers
to the highest standards in the day-to-day efforts tosecure Bridgestone’s global success... We must act
with integrity in all aspects of Bridgestone’s business.”must continue to adapt and evolve to the changing
environment and regulatory landscapes.

the organization to help build and sustain a culture

program consists of a blend of global and regionallyof compliance. Board oversight, supervision andbased initiatives. It aims to balance global consistency

engagement have been hallmarks of the Group’s ethics

with the flexibility needed to effectively address regionaland compliance program for many years. The Groupand even local risks that can vary significantly due to aalso regularly engages executive leaders, managers andwide range of operations and the variety of geographic,

supervisors to help ensure that ethics and compliancelegal and regulatory environments in which the Groupare at the center of all strategic plans and decisions.

operates. Whether at the local, regional or global level,

Additionally, the Bridgestone Group’s Chief Complianceinitiatives are guided by the Group’s core values andOfficer periodically reports the progress of initiatives toprinciples and united under a common framework.

the Board of Directors’ Compliance Committee, and eachregion has a Regional Ethics and Compliance Advisory

The success of any best-in-class ethics and compliance

Panel, consisting of senior leaders from different parts ofprogram, including the Bridgestone Group’s program,the business, to help advise on the direction of the ethics
and compliance program and ensure its effectiveness.

During the detailed assessments mentioned above,

depends on the ongoing and proactive engagement

the Bridgestone Group will also test and validateof leaders, managers and supervisors throughout

assessment methodologies that can be broadly
utilized across its operations. These evaluation
methods will be utilized to more broadly assess
human rights risks across the Group’s global
operational sites, with a target for 80% of its
operations to complete the survey in 2022. Basedon the findings from these assessments, the Groupwill develop mitigation plans for identified risks as well

■ Goals and KPIs
To achieve its compliance and fair competition mission, the Bridgestone Group established a number of goals,
including:•

process.
More information on the Bridgestone Group’s human rights and labor practices is available online.

Bridgestone 3.0 Journey 2022 Integrated Report

Enhancing the antitrust compliance program in each region and making sure it is aligned with global
initiatives.

as improvement measures for its risk management

85 | Management Fundamentals for Value Creation

ethics and compliance programs the Group develops

The Bridgestone Group’s global ethics and complianceand international standards laid out in the UNGPs.

March 2022 in the Group’s diversified products

company, the policies and other global and regional■ Management systemclarify gaps between the current management system

The first in-depth assessment was conducted in

In working toward becoming a sustainable solutions•

Engaging employees on ethics and compliance.

•

Introducing a compliance management data gathering and collaboration solution.

Management Fundamentals for Value Creation | 86

Management Fundamentals for Value Creation

Business Continuity (BCP), Risk Management
Mission■ Initiatives

Prevent and mitigate operational risks

Following the introduction of the Bridgestone

Going forward, the Bridgestone Group will continue

Groupʼs Global Anti-Bribery Policy in 2020, the Groupto rely on its compliance management third-party

introduced an e-learning course in 2021 to help ensure

screening tool (and related procedures) to identify

that employees understand and comply with thebribery and trade compliance risks presented bypolicy. It also further engaged leaders in each region inthird parties with which the Group works. It will also

To achieve its vision of providing social and customer

trainings and frequently reviews risk management

embedding the policy in their operations. Similar work

continue developing the antitrust compliance program

value, the continuity of business operations andand business continuity plans (BCPs) and controls.

is now underway on an e-learning refresher course forin each region and intends to update the Code ofsafety and security of employees are top priorities

the Code of Conduct that was introduced in 2018.

Conduct in 2022.

of the Bridgestone Group. By anticipating, mitigating

We anticipate, prevent and mitigate risk, and when crises arise, we protect our people, planet,
property and profits.

and appropriately managing potential risks, theGroup positively drives business success while also

■ Reporting concerns

protecting its employees. To advance this knowledge

The ethics and compliance program provides

suspected violations of the Code of Conduct or

multiple channels for employees and others to reportother ethical concerns and questions. Each report isallegations of misconduct or wrongdoing, including

thoroughly investigated, and information is regularly

through the BridgeLine. The BridgeLine is a web-provided to the Board of Directors of Bridgestone

based reporting system and phone hotline operated

Corporation and each of its significant subsidiaries

by third-party specialists that allow employees andaround the world.

others to confidentially and anonymously reportMore information on the Bridgestone Group’s global ethics and compliance program is available online.

Our Approach to Tax

organization-wide, the Group conducts regularThis mission is an important aspect of ERM (enterpriserisk management) which is an increasing focus area
as the world grapples with the COVID-19 pandemic,
natural disasters, climate change and the effects
of geopolitical conflicts. The Bridgestone Group is
actively engaged in addressing these challenges.

■ Management system
The Bridgestone Group holds an annual, group-

The Business Continuity & Risk Management Working

wide process to identify potential risks facing eachGroup was established in 2016 as one of the working

SBU and the overall organization. Once risks aregroups under the Global Sustainability Committee. It

identified, the Group names individuals responsible,

is comprised of members from each SBU, manages

and the Chief Risk Officers (CROs) of each SBU

and updates the Bridgestone Group’s Global

cooperate to drive and coordinate risk mitigation

Risk Management Policy, and oversees a part ofand management activities at the department andenterprise risk management, crisis management and

SBU levels. The Group has set up an approach underbusiness continuity systems. All deliberations andthe direction of the Global CEO to deal with the mostefforts are guided by ISO 31000, the international

important business risks.

standard for risk management.

The taxes the Bridgestone Group pays are an important part of its broader economic and social impact
and play a key role in the development of the communities in which it operates. The Group regards taxes
as a cornerstone of its commitment to grow in a sustainable, socially responsible way.
The Group introduced a Global Tax Policy to employees responsible for corporate taxes with the intent
to improve its penetration throughout the organization so that an appropriate global tax governancecan be introduced to the Group based on the Policy. The Group is evolving its global tax governancestructure and continuing to enhance its risk management system to align with society’s expectations of■ Goals and KPIs
To fulfill its BCP/Risk Management mission, the Bridgestone Group is working toward three goals, each withmeasurable KPIs. These include:•

Assessing the Group’s capability of responding to a crisis by conducting a global crisis management exercise
by the end of 2023, aiming for 100% compliance with established crisis management/BCP components.

responsible companies.
•

Finalizing the established risk management process by the end of 2022 by ensuring that the Group’s risk
identification and mitigation process is 100% formally documented.

•

Integrating climate change into the Group’s risk identification and management processes by the end of2022. The Group will continue to monitor its ESG ratings to gauge risk from and response to climate change.

87 | Management Fundamentals for Value Creation

Bridgestone 3.0 Journey 2022 Integrated ReportManagement Fundamentals for Value Creation | 88

Status of adoption of TCFD recommended disclosures
Recommended disclosures■ Initiatives
To achieve these goals, the Group continues to

In 2021, the Global Principle, a common definition

improve operational risk-control processes thatand framework for crisis management/BCP, and thestrengthen the management team’s ability to makeupdated SBU Assurance Policy were developed andinformed, timely and widespread decisions. It alsorolled out to SBUs, along with project milestones.

is undertaking all-hazards BCP planning at either

The Group also addressed cyber risks with theregional or global level depending on the type

Information Technology function and updated theof the risks. All-hazards BCP planning prepares

criteria for emergency action reports.

the organization for all types of threats andvulnerabilities to prevent supply chain disruption,rather than planning for specific scenarios.

Governance

Board of Directors’
oversight of risks andopportunities• The Board of Directors receives and reviews regular reports on the statusof sustainability initiatives, including achieving carbon neutrality andcontributing to a circular economy.

Management’s role inassessing and managing
risks and opportunities• The Global Executive Committee (Global EXCO), the highest level ofcorporate management, approves and manages the progress of mid-longterm strategies, targets and action plans, including achieving carbon
neutrality and contributing to a circular economy.

Risks and opportunities
over the short-, medium-,and long-term

Going forward, the Bridgestone Group will continue
to improve its operational framework to strengthenrisk management, crisis management and BCP.

More information on the Bridgestone Group’s approach to Business Continuity and Risk Management is

Strategy

available online.

Topic: Climate and Nature-related Risk Management andImpact on businesses,
strategy, and financial
planning

Responses to TCFD and TNFD

Resilience of theorganization’s strategy
taking into considerationdifferent climate-related
scenarios

The Bridgestone Group supports the Task Force on Climate-related Financial Disclosures (TCFD) and its

Risk identification andassessment process

recommendations, recognizes climate-related risks and opportunities identified in accordance with
the TCFD framework, and is working to reflect and disclose such information in its business strategies.
The Group formulated long term environmental vision and mid-term targets toward achieving carbon
neutrality and contributing to the realization of a circular economy in light of climate-related risks andopportunities. The Group is working to reduce the risks of transition to a decarbonized society by reducing

Risk management process
Risk

Management
Integration into theorganization’s overall risk
management

CO2 emissions throughout its value chain, while at the same time reducing physical risks through adaptive
measures such as diversifying natural rubber supply sources through initiatives to commercialize guayule.
Furthermore, in addition to its past participation in the Business for Nature and the Japan BusinessInitiative for Biodiversity (JBIB), the Group began participating in the Task Force on Nature-related

Metrics used to assess
risks and opportunities

Financial Disclosures (TNFD) Forum in March 2022. The Group recognizes risks and opportunities related
to its impact and dependence on nature and is currently assessing multiple nature-related scenarios inlight of the global trend toward a nature-positive world.

Metrics andTargets

Risks and opportunities identified by the Bridgestone Group/Status of theGroup’s response

Greenhouse gas (GHG)
emissionsTargets and performanceagainst targets used to
manage climate-relatedrisks and opportunities

Physical risks and opportunities related to climate change• Risks of stronger typhoons and increased frequency of flooding anddrought, which pose the risk of interrupting business activities.
• Risks related to the procurement of raw materials as a result of changing
rainfall patterns leading to poor harvesting of natural rubber.
• Risk of lower demand for winter tires due to reduced snowfalls.
• Opportunities to commercialize natural rubber derived from guayule, which
grows in arid regions. Risks due to poor harvesting of natural rubber derived
from Para rubber trees, which are found predominantly in tropical regions.
Risks and opportunities of transition to a decarbonized society• Risk of adverse effects on operating results and financial position, suchas limitations on business activities and increased costs, if R&D expenses
required to meet the rapidly changing needs of society and customers do
not produce sufficient results when systems and regulations to combat
climate change are introduced (for example, carbon taxes, CO2 emission
reduction obligations and emissions trading systems, systems andregulations related to low-fuel consumption performance of tires, systems
and regulations related to recycling used tires, etc.).
• Opportunities associated with changes in competitive factors due tochanges in mobility needs (for example, increased demand for tires for
EVs, increased demand for tires and solutions that help customers reduce
CO 2 emissions).
• Opportunities to commercialize the recycling business resulting fromincreased regulation around the recycling of used tires.
• The Group is assessing risks and opportunities based on multiple climaterelated scenarios. It has already begun to address the important risks andopportunities identified and will continue to do so on a regular basis.
• The Group strives to comprehensively and appropriately address risks
across the operation, including climate-related risks, while considering
the business scale, characteristics of business, and region of eachGroup company. The Group is currently assessing ways to improve its
management of business strategy risks directly related to the executionof the Mid-Long Term Business Strategy by setting up a dedicated annual
risk management process under the direct leadership of the Global
EXCO, while operational risks related to day-to-day operations areoverseen by the Chief Risk Officer (CRO), who is responsible for overall risk
management and formulating risk response plans.
• Identifying potential risks faced by each region and the Group as awhole on an annual basis; clarifying ownership for those risks not only
for the Group as a whole, but also for each business, SBU and division;and implementing risk management in an autonomous and continuous
manner.
• Establishing targets and regularly monitoring CO2 emissions (CO2emissions reduction in Scope 1 and 2, and the reduction contribution of
CO 2 emissions throughout the lifecycle and value chain of the BridgestoneGroup’s products and services) as one of the metrics for assessing andmanaging climate-related risks and opportunities.
• Including climate-related risks and opportunities in investment decisions
and reinforcing them, such as CO2 emission costs and reduction benefits
from internal carbon pricing.
• Setting long term environmental vision (2050 and beyond) and mid-termtarget (2030) to achieve carbon neutrality and contribute to a circular
economy; evaluating and disclosing performance every year.

Details on the status of response are available online: TCFD Index / Annual Securities Report “2. Business risks - (4) Risks related to climate change”

89 | Management Fundamentals for Value Creation

Bridgestone 3.0 Journey 2022 Integrated ReportManagement Fundamentals for Value Creation | 90

Management Fundamentals for Value Creation

Procurement
Mission•Conducting onsite ESG audits of 21 natural rubber processing facilities and four natural rubber plantations by

Create value to society through sustainable procurement practices•

Establishing the Group’s grievance mechanism for natural rubber supply chain in the first quarter of 2022. The

We are committed to creating value and continually working toward a sustainable society toGroup will solve social and environmental issues in cooperation with the direct suppliers and a third-party
adviser, and will disclose the status of each grievance quarterly.

realize long-term environmental, social and economic benefits by incorporating the following
into the entire supply chain:

the end of 2022.

1. Transparency				3. Quality, cost, delivery (QCD) and innovation■ Initiatives

2. Compliance				4. Sustainable procurement practices

In 2021, the Bridgestone Group revised its Global

demand for ESG risk

Sustainable Procurement Policy to respond to

management by external

stakeholders’ expectations of contributing toward a

stakeholders. In order to

The Bridgestone Group’s sustainable procurement

and serve as a communication and improvement toolcarbon-neutral state by 2050 and beyond in light ofidentify and assess ESG

initiatives create long-term environmental, social andfor the industry.

the Policy Framework of the Global Platform forrisks on its natural rubber

Sustainable Natural Rubber (GPSNR). This revision

supply chain, the Group has

mirrors the Group’s December 2020 update to its long-utilized Verisk Maplecroftterm environmental target of achieving a carbon-

and EcoVadis. In addition,neutral state by 2050 and beyond, along with its target

the Group has prioritizedof reducing total CO2 emissions by 50%1 by 2030. The

targeted suppliers based

revised policy also includes new requirements for theon the result of Veriskenhancement of environmentally responsible

Maplecroft and EcoVadis scores and conducted on-site

procurement and respect for human rights. Conflict

ESG audits of those suppliers using a self-assessment

minerals (see the following page) were also addressed

questionnaire developed in collaboration with the WWF

in the revised policy.

Japan. If a risk is identified by the audits, the Group will

economic benefits for stakeholders across its supply
chain. This work is grounded in its Global Sustainable
Procurement Policy and aligns with the BridgestoneGroup’s goal of using 100% sustainable materials1 by
2050 and beyond. The policy helps identify andevaluate qualified suppliers, promote best practices

The Group’s sustainable procurement mission isimportant as customers and consumers are evermore interested in the natural rubber supply chain,including human rights and environmental practices,of the rubber the Bridgestone Group sources.

■ Management system
Composed of cross-functional members including

Procurement Policy and related plans. It also confirms

senior management procurement/sustainability

the progress of global initiatives and activities that areleaders from around the world, the Sustainable

then reported to the Global Sustainable Committee

Procurement Working Group formulates and(GSC) and Global EXCO.

deploys the Bridgestone Group’s Global Sustainable

Additionally, in February 2022, the Bridgestone Grouplaunched a grievance mechanism for the natural
rubber supply chain in partnership with a third party

continuously support and develop a plan to prevent/mitigate the risk together with suppliers in order toreduce risks throughout its natural rubber supply chain.

Earthworm Foundation. The Group’s grievance

The Bridgestone Group is also accountable formechanism supports the intake of grievances

improving the traceability and transparency of the■ Goals and KPIs

related to social and environmental issues brought

complicated and complex natural rubber supply

by stakeholders against its natural rubber supply

chain consisting of many complicated layers of raw

To achieve its sustainable procurement mission, the Bridgestone Group established a number of goals and KPIs,

chain and aids solving the issues in cooperation withmaterial dealers, processing plants, rubber productthe direct suppliers and Earthworm Foundation in

manufacturers and smallholder farmers. To this end, it

accordance with its Global Sustainable Procurement

is working to introduce a new digitized tool in Liberia.

Policy. As necessary, the Group will coordinate with the

In addition, for the Asian region such as Indonesia or(As of March 31, 2022, 67% of Tier 1 tire material suppliers had done so.)grievance mechanism of the GPSNR.

Thailand, the Group is developing an online traceability

95% or more of its spend basis for the Group’s Tier 1 tire material suppliers will have completed an EcoVadis

As a leading company in the tire and rubber industry,including:••

100% of Tier 12 suppliers will have acknowledged the revised Global Sustainable Procurement Policy by theend of 2022.

enhanced ESG risk assessment by the end of 2023.

the Group is focused on continually meeting the(As of March 31, 2022, 95% had done so.)••increasing sustainability requirements for natural

100% of natural rubber Tier 1 suppliers will have completed an EcoVadis enhanced ESG risk assessment by therubber, while also addressing the environmental and(As of the end of 2021, 94% had done so.)Group has started to enhance its ESG due diligenceend of 2022.

30% of the Group’s natural rubber supply chain will be traceable to the smallholder level by the end of 2022.

social risks arising from this expansion. Therefore, thesystem that collects sourcing information, and is
promoting the expansion of ensuring transparency
centered on a relatively short supply chain. It also hosts
annual supplier conferences to continually convey theimportance of sustainability and share best practices.

for natural rubber supply chain, which has the highest(At the end of 2021, 25% was traceable to this level, although this percentage fluctuates seasonally.)
1

The Bridgestone Group defines sustainable materials as materials 1) that come from resources with a continual supply, 2) that can be used as part of2

Suppliers that supply materials directly to the Bridgestone Group.

our business over the long term, and 3) that have a low environmental and social impact over the lifecycle from procurement to disposal.

91 | Management Fundamentals for Value Creation

1

Bridgestone 3.0 Journey 2022 Integrated Report

Baseline year: 2011

Management Fundamentals for Value Creation | 92

Management Fundamentals for Value Creation

Quality and Customer Value
MissionA message from

Creating customer value and trust

Bastien Sachet

We are leveraging on a global framework in collaboration with all related Bridgestone entities

CEO, Earthworm Foundation
Launching its grievance mechanism in February

While promoting transparency, Bridgestone

2022, Bridgestone has taken a strong step forward

builds the foundation to drive positive change

for more transparency within its natural rubber

within the natural rubber supply chain for all

supply chain.

stakeholders including farmers, workers, andA grievance mechanism is a key tool to support
companies with the implementation of a
responsible sourcing strategy. This tool allows
companies to firstly identify and then takeappropriate actions to improve environmental andsocial concerns within their value chain. Moreover,a grievance mechanism goes beyond mitigation;
it facilitates the prevention of future grievancesand stakeholders to proactively identify, prioritize and address customer quality issues in
keeping with the intention of our founder to the Group’s Mission of “Serving Society with
Superior Quality.”

local communities, and to reduce deforestation

Quality is essential to achieve a sustainable society

rates. Strong engagement with Bridgestone’s

and provide people worldwide with safe anddirect suppliers will be key for the successful

comfortable living through attractive, high-quality

implementation of the grievance mechanism. As

products, services and solutions and embodies thesuch, expected next steps will include socializing“Bridgestone E8 Commitment.” The Bridgestone

this tool with key supply chain partners andGroup established the Quality Mission Statement toensuring its adaptation for all key sourcing regions

engage every employee in contributing to building

where Bridgestone operates directly.

these high-quality products, services and solutions
that exceed customers’ expectations throughthrough learning from past experiences andinnovation and Kaizen (continuous improvement).

creating more collaboration with local stakeholders.

The Quality Mission Statement enables the future
direction of the Bridgestone Group and its leadership,based on the spirit of founder Shojiro Ishibashi, by■ Tracing conflict minerals

advancing the Group’s proud heritage of quality and

The Bridgestone Group’s Sustainable Procurement

products potentially contain conflict minerals are

Policy covers all materials, including conflict minerals

required to complete and submit the reporting(tin, tungsten, tantalum and gold) and cobalt

templates annually.

extracted in conflict areas such as the Democratic
Republic of the Congo (DRC) and adjoining countries.
The Group conducts risk assessments across its
supply chain using the reporting templates compiledby the Responsible Minerals Initiative (RMI) allianceconsisting of over 400 global corporations andAdditionally, the Group has traced 100% of thesmelters from which it sources tire-product materials
globally. All are compliant with the Responsible
Minerals Assurance Process (RMAP), which is certified
by RMI.

commitment to continuous improvement. Throughemployee engagement with continuous improvement
and innovation, the Bridgestone Group strives toapply the principles of excellence to achieve superior
quality across all businesses globally and throughout
the value chain.
The Bridgestone Group puts the safety of its customers
and employees first and we endeavor to deliverproducts, services and solutions with perfect quality.

organizations. Bridgestone Group suppliers whose■ Management system
More information on the Bridgestone Group’s procurement practices is available online.

The Bridgestone Group has a Global Chief Quality

global governance around the deployment of its quality

Officer (Global CQO) and CQOs in all SBUs. Together,mission and initiatives in each SBU. The GQMC works

they are responsible for product, service and solution

as an effective committee to set the global quality

quality in their markets. The CQOs guide and support

strategy, identify global quality challenges and defines

the organization by promoting quality innovation andsolutions leveraging global expertise and resources.

continuous improvement activities that produce safe,

In addition, the Bridgestone Group has establishedhigh-performing products that deliver customer value

an auditing framework to continuously assess theand trust.

effectiveness of systems and processes to deliver the

In 2017, the Bridgestone Group established the Global
Quality Management Committee (GQMC) to strengthen

93 | Management Fundamentals for Value Creation

Bridgestone 3.0 Journey 2022 Integrated Reporthighest quality products, services and solutions to its
customers.

Management Fundamentals for Value Creation | 94

Corporate Governance
Basic approach■ Goals and KPIs
To achieve its quality and customer value mission, the Bridgestone Group established goals, including:•

Monitoring quality-related items of environmental, social and governance (ESG) evaluations using the industry
average as a benchmark and increasing transparency by enhancing information disclosure.

■ Initiatives
To achieve the above goal, the Group is promoting

The Group is leveraging its Solution Businessthe dissemination of the Quality Mission Statement toManagement Guideline developed in 2020 andall employees globally and in each region. The Groupsupporting its journey to become a sustainable

is working on a quality assurance system to produce

solutions company by promoting Bridgestone Tires

high-quality products that are friendly to the global

and Diversified Products as a Solution (Bridgestone

environment and have little waste in the production

T&DPaaS). The guidelines are helping establish strong

process of each business site.

quality management systems in each SBU as theBridgestone Group aims to continuously enhance thevalue it delivers to customers and society in alignment
with its strategy.

■ Bridgestone’s DNA, TQM activity
The Bridgestone Group’s long-standing TQM

In 2021, under the COVID-19 pandemic, the global(Total Quality Management) activities have been

TQM conference was held with interactive video

incorporated into its culture and growth for over 50

communication to highlight improvement projects

years. Employees from all over the world, who havefilmed at each site beforehand and distributed to all

passed rigorous regional qualifiers, have gathered at

employees. Sixteen projects from qualifying entries

a global TQM conference for sharing best practices

from around the world were shared as model cases.

In 2020, Bridgestone Corporation, under the Mission

Bridgestone has been using the Corporate Governanceof “Serving Society with Superior Quality,” defined

Code as a tool for evaluating its governance policies

its vision of “Toward 2050, Bridgestone continues

and systems and has implemented all the generalto provide social value and customer value as aprinciples, principles and supplementary principles

sustainable solutions company.” As part of its efforts

set forth in the Code. The Governance Committee,

in working towards the achievement of this vision,an advisory committee to the Board of Directors,

the Company has been managing its business indeliberates and reports on the content of theaccordance with its Mid-Long Term Business Strategy.

Corporate Governance Code in reports (Japanese and

The Company is continuing to improve its corporate

English versions) and decisions made by the Board ofgovernance to strengthen internal controls and evolve

Directors are disclosed on the corporate website.

as a sustainable solutions company.

Transformation of corporate governanceBridgestone has made continuous efforts toabolish the full-time position of Chairman and tostrengthen its corporate governance structure,

select a Chairperson of the Board of Directors from

including the introduction of Independent Directors

among the Independent Directors at a meeting ofin 2010, the establishment of advisory committees tothe Board of Directors to enhance execution andthe board between 2013 and 2014, and the adoption

supervisory functions. Please see below for anof the “Company with Nominating Committee, etc.”

overview of transformation of Bridgestone’s corporatemodel in 2016. As part of this ongoing process, thegovernance to date.

Articles of Incorporation were amended in 2021 to

Milestones in ongoing governance transformation

every year since 2010.
More information on the Bridgestone Group’s commitment to quality and customer value is available online.

95 | Management Fundamentals for Value Creation

Bridgestone 3.0 Journey 2022 Integrated Report

Corporate Governance | 96Corporate governance system

the execution of those decisions, as the Global

and proactive work is also conducted by theCEO, two Joint Global COOs, the Global CFO

Nominating Committee, Audit Committee andand the Global CTO. In addition, these divisions

Compensation Committee. The Board of Directors

have adopted a system in which members areoversees the performance of the Company’s

collectively responsible for management. These

executive officers and directors. Furthermore, to

executive officers, as well as persons responsible

strengthen corporate governance transparency, thefor major business entities, comprise the Global

Governance Committee and Compliance Committee

Executive Committee (Global EXCO). This committee

have been established as advisory bodies to theaims to strengthen the checks and balances of theBoard of Directors.

Group by debating and discussing management

in board composition with respect to knowledge,

own Independence Standard. Based on the above

experience and skills. Committee members

approach, the Company’s Board of Directors has an

consider business experience and expertiseoverall balanced composition with the necessary

in a wide range of disciplines and fields forperspectives to oversee the successful execution of

Independent Director candidates. Additionally, it

the Mid-Long Term Business Strategy to enhanceis the policy of the Company that the board should

corporate value.

Board portfolio skill matrix (names shown in original Japanese language order)

○

○

○

Masahiro
HIGASHI

Representative
Executive Officer

1

○

○

○

function.

Hideo
HARA

Internal / Nonexecutive

2○

Nominating Committee, Compensation Committee

Please see below for the Company’s corporate○

governance structure put in place to realize its Mid-Internal / Nonexecutive

3

and advisory committees are composed entirely ofTsuyoshi
YOSHIMI

Independent Directors.

Long Term Business Strategy.

Yuri
OKINA

Outside /Independent

8

Seiichi
SASA

Outside /Independent

6○

YojiroSHIBAOutside /Independent

4

○

Yoko
SUZUKI

Outside /Independent

4○

Scott Trevor
DAVIS

Outside /Independent

11

KeikouTERUI

Outside /Independent

6

Kenichi
MASUDA

Outside /Independent

6

Kenzo
YAMAMOTO

Outside /Independent6

improves transparent decision-making. In addition,

Committee, and Compensation Committee) andOutside andIndependent
Directors

each operating division maintains a system foradvisory committees (Governance Committee

reporting to the appropriate representative officers

and Compliance Committee), supervises

regarding the execution of duties. This information

operating divisions via regular progress reports

is also regularly reported to the Board of Directors

and information sharing to create a corporate

in a timely manner in order to aid in theirgovernance system that aims to realize thedeliberations. Collectively, these actions ensure

Mid-Long Term Business Strategy. The Board of
Directors and the Audit Committee are comprisedof a majority of Independent Directors and thethat the Group maintains an effective supervisory

Corporate governance structure

Non-executive
Directors/

Audit Committee

2committees (Nominating Committee, Audit

Name

Nominating Committee

Representative
Executive Officer

sustainability from a global perspective, which

Tenure as Director (Years)

Shuichi
ISHIBASHI

issues including management strategy and

The Board of Directors, including these statutory

Executive
Officers/○○*Tenure as of March 23, 2022.

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

Management Experience at
Other Companies

eight Independent Directors. Appropriate

external directors, the Company has established its

Legal Affairs and Risk
Management

Board of Directors and assume responsibility for

Finance and Accounting

Directors consists of 12 directors, including

and deliberation. To ensure the objectivity ofdiversity and, at the same time, overall balanceTechnologies andInnovationon the execution of operations delegated by the

be of sufficient size to enable adequate discussion

for nomination to the board, seeks to maintain

Global Experiencemodel of corporate governance. The Board of

The Nominating Committee, in selecting candidates

Capital, Personnel andOrganizational Strategy

representative executive officers, make decisions

Sustainability

The five executive officers including two“Company with Nominating Committee, etc.”

Compensation Committee

In March 2016, Bridgestone transitioned to theApproach to the composition of the Board of Directors and the roles particularly
expected of directors

○

○

○

○

○

○

*Outside and Independent Directors are listed in order of the Japanese syllabary.

*Circles indicate the top three priorities in the expected areas of contribution as a director.

*As of May 2022.

97 | Corporate GovernanceBridgestone 3.0 Journey 2022 Integrated Report

Corporate Governance | 98

Board of Directors and Executive Officers
As of May 2022

■ Board of Directors

Evaluating the effectiveness of the Board of Directors
Bridgestone has continuously improved its governanceconsists of all eight Independent Directors, and are

structure, as described in the Transformation ofreported to the Board of Directors. Based on the

Corporate Governance section above. Building upon

effectiveness evaluation, the Board of Directors, thethese enhancements, the scope of the evaluation of

statutory committees and the advisory committees

Board effectiveness has been taken to include not

identify issues to be addressed, and this process of

only the Board of Directors but also the statutory andevaluation, issue identification and implementation isadvisory committees. Evaluation of the entire scope

carried out in a one-year cycle, leading to continuous

Shuichi ISHIBASHI

Masahiro HIGASHI

Scott Trevor DAVIS

Yuri OKINA

of board functions (the Board of Directors, statutory

improvement of corporate governance. Please refer toMember of the Board

Member of the Board

Member of the Board1

Member of the Board1

committees, and advisory committees) includes thethe 2022 Report on the Corporate Governance Code,Global CEO and

Joint Global COO andChairperson of the Board of Directors

Chairperson of the Compensation Committee

review of all board deliberations and their outcomes

Supplementary Principle 4.11.3 for the results of theRepresentative Executive Officer

Representative Executive Officer

Member of the Nominating Committee

Member of the Nominating Committee

and self-evaluations of all directors. The results are

effectiveness evaluation in fiscal 2021.

Member of the Compensation Committee
Chairperson of the Governance Committee

discussed by the Governance Committee, which

Compensation system for executive officers
Compensation for each position and individual

and incentives to achieve management strategies.

director and executive officer is determined by

As a result, the mid-long term incentive portion of

the Compensation Committee, which is composed

variable compensation which previously consideredsolely of Independent Directors. In its deliberations

only numerical targets such as consolidated ROIC

the committee considers changes in the businessand ROE, was modified to include an incentive based

environment, the opinions of shareholders andupon achievements in sustainability and long-term

investors, along with information from third-party

transformation strategies comprising 50% of the mid-

human resources and compensation consultants withlong term incentive.

extensive global experience and knowledge.

Kenichi MASUDA

Kenzo YAMAMOTO

Keikou TERUISeiichi SASA

Member of the Board1

Member of the Board1

Member of the Board1

Member of the Board1

Chairperson of the Nominating Committee

Chairperson of the Audit Committee

Member of the Audit Committee

Member of the Audit Committee

Yojiro SHIBA

Yoko SUZUKI

Hideo HARA

Tsuyoshi YOSHIMIMember of the Board1

Member of the Board1

Member of the Board

Member of the Board

Member of the Audit Committee

Member of the Audit Committee

Member of the Audit Committee

Member of the Audit Committee

Member of the Compensation Committee
Chairperson of the Compliance Committee

For details on the compensation system, please refer

The compensation system was revised in 2022, afterto “(4) Remuneration for Members of the Board anda series of discussions and deliberations focused on

Executive Officers” in the Annual Securities Report

the basic concept and ideal form of compensation(103rd Fiscal Period).

■ Executive officers

1

99 | Corporate GovernanceBridgestone 3.0 Journey 2022 Integrated Report

Shuichi ISHIBASHI

Global CEO and Representative
Executive Officer

Masahiro HIGASHI

Representative Executive Officer

Chair of Global Sustainability Committee

Joint Global COO (In charge of
Global OR/AC Business, Japan
Business and BSCAP)

Concurrently responsible for BSJP Tire Solutions Business and BSJP Tire Business CEO and COO

Paolo FERRARI

Executive Officer

Global CSO (Global Chief Business Solutions Officer)

Joint Global COO (BSAM, BSEMIA)

BSAM Member of the Board, CEO and President

Masuo YOSHIMATSU

Senior Vice President andExecutive Officer

Global CFO (Global Chief Financial Officer)

Masato BANNO

Senior Vice President andExecutive Officer

Global CTO (Global Chief Technology Officer)

Chairman and Representative Board Member of Bridgestone Tire Solution Japan Co., Ltd.

Responsible for Technology, Quality Management

Independent Director

Board of Directors and Executive Officers | 100

Stakeholder Engagement
The Bridgestone Group prioritizes engagement with stakeholders as it strives to understand their perspectives
and to share its point-of-view. Learnings from stakeholders help inform the Group’s business activities as it
continues to sustainably grow its business.

StakeholderGroup

The Bridgestone Group
Responsibilities

Communication Channels• Responses to Customer Communication Center inquiries• Developing appealing products/services• Providing timely response and support

Customers• Analysis, database compilation and internal utilization of customer input• Bridgestone Innovation Gallery dedicated to Bridgestone history andinnovation initiatives• Providing appropriate information• Websites and social media• Effectively managing customer• Daily sales and service activities (retail stores, dealer channels, online

informationcommerce)• Customer satisfaction survey• Auto shows and exhibitions• Annual Shareholders’ Meeting

Bridgestone Group Awards
The Bridgestone Group Awards represent the highest

the expansion of each employee’s various initiatives

level of recognition within the organization. All Groupto realize eight Bridgestone-like values stated in theentities and employees are eligible for the awards.

“Bridgestone E8 Commitment,” which will expand

The global management team reviews projects

sustainably like a ripple effect.

which have committed to realize the Group’s vision
and Mid-Long Term Business Strategy, and selectthe most outstanding global initiatives among themto honor their achievements and efforts. Sharing
the outstanding initiatives through the BridgestoneGroup Awards not only cultivates employee pride,
but also plays an important role in raising awarenessand fostering a sense of unity among all employees.
In this way, the Bridgestone Group Awards amplifies

The Bridgestone Group Awards 2021 were comprisedof four categories: Solutions for Sustainability
Business, Value Creation for Society, Value Creation
for Customers and Management Fundamentals. Seven
projects were presented, including the Honor Award(Special Award).
More information on the awards is available online.

• Corporate Governance Code Report

Shareholders andInvestors• Providing appropriate and timely
information• Maximizing corporate value• Corporate Governance Report• Financial results review meetings• Mid Term Business Plan (2021–2023) and progress updates• Investor relations website• Reports based on International Integrated Reporting Framework

External evaluation in the sustainability field• Individual meetings with investors, and ESG dialogue with investors• Communications at sustainability-related events

Business
Partners• Ensuring fair and impartial transactions• Communicating Sustainable Procurement
Policy• Daily procurement activities

The Bridgestone Group’s sustainability efforts have been highly evaluated externally.

• Procurement policy explanatory forums/Sustainability seminars• Global Sustainable Procurement Policy rollout• Discussions with management•

Dow Jones Sustainability Asia Pacific Index: Selected as a component of the Dow Jones Sustainability•

FTSE4Good Index Series: Selected as a constituent stock of the FTSE4Good Index Series for the fourth•

CDP: Selected for the “Water Security A-List” for its outstanding efforts in response to tackling water

Asia Pacific Index for the 12th consecutive year.

• Bridgestone Code of Conduct, Global Human Rights Policy and Global• Respecting human rights• Promoting diversity and inclusion,
including diverse working styles

Employees• Developing and utilizing human resources• Promoting occupational health and safety,
and health and productivity management• Facilitating mutual understanding between
management and labor

Anti-Bribery Policy• Employee engagement survey• Personnel evaluation systems and career development consultation• Talent matching system (open-posting system and job-matching system)of female managers• Meetings between labor and management• In-house newsletters and intranet• Town hall meetings• Bridgestone Group Awards and other reward systems• Internal events related to the Olympic and Paralympic Games

Local
Communities,
NGOs• Contributing to local communities• Preserving local environments• Supporting activities in locations with the
Bridgestone Group operating sites

Industry
Organizations
and Educational• Donations and social contributions• Facility tours• Environmental and safety educational activities• Sponsorship and aid for local events• Disaster relief support

security by proactively self-reporting environmental information. Received highest rating in Supplier

Engagement Rating and named to the prominent Supplier Engagement Leader for the fifth time for thethird consecutive year.

- CDP Climate Change: A- CDP Water Security: A- CDP Supplier Engagement: A• Dialogue and collaborations with NGOs
• Trade association memberships, committees and conferences

Government
Agencies,

consecutive year.

• Participation in The Valuable 500, promote appointment and recruitment• Dialogue and collaborations with economic and industry organizations• Contributing to the development of a safeand reliable mobile society• Supporting educational activities• Participating in industry economic impact
studies and supply chain assessments

Institutions

101 | Stakeholder Engagement• Engagement with government officials• Participation in global initiatives on sustainability and environment suchas the Tire Industry Project operated under the World Business Council
for Sustainable Development, the Global Platform for Sustainable Natural
Rubber, Ellen MacArthur Foundation and Business for Nature• Interaction and exchanges of opinion with municipal government agencies• Communication, coordination, and support of industry-government-academia partnerships

Bridgestone 3.0 Journey 2022 Integrated Report

Stakeholder Engagement | 102

Financial Data
Consolidated Operating Results

FY2011

3,024.3

Revenue

191.3

Adjusted operating profit

FY2012

3,039.7
285.9

6.3

Adjusted operating profit margin

3,673.9

12.3

13.0

438.1

171.6

3.4

Profit attributable to owners of parent margin

Japanese GAAP1
FY2014

3,568.0

9.4

102.9

Profit attributable to owners of parent

FY2013

478.0

202.0

5.6

FY20153,790.2
517.2

3,337.0
449.5

13.6

300.5

5.7

FY2016

3,643.4
419.0

13.5

284.2

8.2

FY20173,650.1
402.7

11.5

265.5

7.5

FY2018

11.0

288.2

8.0

291.6

7.9

8.0

FY20193,507.2
343.1
9.8

240.1
6.8

IFRS
FY20202,994.5

FY202123,246.1

222.9

394.3

7.4

12.1

-23.3

394.0

-0.8

12.1

Unit
billion JPY
billion JPY％

billion JPY％

Until 2018 (J-GAAP): Net sales, operating profit, profit attributable to owners of parent
2
In accordance with the decisions of business transfer, the Company has classified its US building materials business, anti-vibration rubber business, and chemical products solutions business as discontinued operations. Accordingly, revenue and adjusted operating profit show figures for continuing operations and exclude revenue and expenses of the three businesses.
1

Consolidated Operating Results by Segments1
Japan

Revenue

Adjusted operating profit

Adjusted operating profit margin

Americas

Revenue

Adjusted operating profit

Adjusted operating profit margin

Europe, Russia, Middle East, India and Africa (EMIA)2

FY2011

Adjusted operating profit margin

FY2015FY2016FY2017FY2018FY2019IFRSFY2020

FY20215

Unit

1,270.3
219.5
17.3

1,264.9
210.1
16.6

1,187.8
197.4
16.6

1,080.6
150.6
13.9

1,147.8
160.2
14.0

1,170.5
153.5
13.1

918.1
108.8
11.9

762.6
64.6
8.5

873.0
117.0
13.4

billion JPY
billion JPY%

1,288.6
61.9
4.8

1,330.9
92.3
6.9

1,651.9156.4
9.5

1,768.1
180.2
10.2

1,941.6
222.5
11.5

1,645.3
203.1
12.3

1,776.5
187.5
10.6

1,758.2
177.8
10.1

1,661.7
184.3
11.1

1,407.9139.9
9.9

1,454.6
190.6
13.1

billion JPY
billion JPY
％

413.1
11.3
2.8

348.8
1.8
0.5

423.3
2.0
0.5

439.2
20.3
4.6

421.7
21.4
5.1

477.1
27.7
5.8

559.8
13.6
2.4

596.1
11.0
1.9

640.1
15.0
2.3

564.3
-17.6
-3.1

693.9
42.1
6.1

billion JPY
billion JPY
%

699.6
48.2
6.9

699.9
55.7
8.0

862.7
80.2
9.3

841.5
66.8
7.9

838.0
68.2
8.1

621.7
62.5
10.1

648.8
62.9
9.7

633.8
56.7
9.0

462.8
36.2
7.8

394.6
24.6
6.2

386.9
42.0
10.9

billion JPY
billion JPY％

Adjusted operating profit margin

Adjusted operating profit

Japanese GAAP4FY2014

1,218.7
158.4
13.0

Revenue

Revenue

FY2013

1,229.0
69.5
5.7

Adjusted operating profit
China, Asia-Pacific (CAP)3

FY2012

Including transactions caused by businesses among segments
2
Segment information: The Group decided to change our segment classifications since fiscal 2016. Until 2015 Europe; In 2016 Europe, Middle East and Africa; In 2017 and 2018 Europe, Russia, Middle East and Africa; Since 2019 Europe, Russia, Middle East, India and Africa
3
Segment information: The Group decided to change our segment classifications since fiscal 2016. Until 2015 China, Asia Pacific, Middle East, Africa and Russia; In 2016 China, Asia Pacific and Russia; In 2017 and 2018 China and Asia Pacific; Since 2019 China, Asia (excluding India)-Pacific4
Until 2018 (J-GAAP): Net Sales, operating profit
5
In accordance with the decisions of business transfer, the Company has classified its US building materials business, anti-vibration rubber business, and chemical products solutions business as discontinued operations. Accordingly, revenue and adjusted operating profit show figures for continuing operations and exclude revenue and expenses of the three businesses.
1

Financial Positions

FY2011

2,677.3

Total assets

1,165.6

Total equity

42.2

Ratio of equity attributable to owners of parent to total assets1
ROIC2

－

3,039.7

1,417.3
45.2

－

9.1

ROE3

FY2012FY2013

Japanese GAAP4FY2014

3,577.0

3,960.9

50.5

52.4

1,862.9

－

13.7

12.7

FY2015

3,795.8

FY2016

3,716.0

2,146.6

2,282.0

2,345.8

－

－

－

15.5

58.2
13.3

61.5

FY2017

3,959.0

2,402.7
59.2

－

11.8

FY20183,840.2

2,436.1
61.9

－

12.5

12.4

FY20194,277.0

2,402.5
54.9
7.4

10.0

IFRS
FY20204,189.3

FY20215

4,574.9

2,195.3

2,675.4

51.3

57.5

5.5

9.0

-1.0

12.9

Unit
billion JPY
billion JPY%%%

Ratio of equity attributable to owners of parent to total assets ＝ Total equity attributable to owners of parent / total assets
2
ROIC (Return on invested capital) ＝ Adjusted operating profit after tax / invested capital3
ROE (Return on equity) = Profit / ((previous year-end total equity + current year-end total equity) /2)*100
4
Until 2018 (J-GAAP): Total assets, net assets and equity ratio** Equity (net assets - share acquisition rights - non-controlling interests) / total assets
5
In accordance with the decisions of business transfer, the Company has classified its US building materials business, anti-vibration rubber business, and chemical products solutions business as discontinued operations. Accordingly, ROIC and ROE show figures for continuing operations and exclude revenue and expenses of the three businesses.
1Cash Flows
Cash flows from operating activities
Cash flows from investing activities
Free cash flow1
1

152.1

-177.0-24.9

FY2012404.4-237.9166.5

FY2013

471.7

Japanese GAAPFY2014428.6-265.2-305.6

206.5

122.9

FY2015553.9-233.3320.5

FY2016444.5-178.2266.2

FY2017418.1-200.7217.3

FY2018360.9-243.0117.8

FY2019505.0-261.9243.2

IFRS
FY2020526.9-155.4371.6

FY2021

Unit

281.5

billion JPY

413.2

billion JPY

131.7

billion JPY

Free cash flow = Cash flows from operating activities + cash flows from investing activities

CAPEX, Depreciation/Amortization and R&D

FY2011

201.3

Capital expenditure
Depreciation and amortization
Depreciation and amortization % to revenue
R&D expenses
R&D expenses % to revenue
1

FY2011

158.0
5.2

83.9
2.8

FY2012

245.6
155.0
5.1

82.8
2.7

FY2013

274.9

Japanese GAAPFY2014
296.3

176.1
4.9

2.5

253.5

FY2016194.1

FY2017234.8

FY2018268.4

FY2019328.2

IFRS
FY2020

271.9

188.3

202.3

188.0

200.3

200.4

269.7

267.5

94.1

94.9

95.4

99.7

103.5

106.2

95.2

5.1

89.0

FY2015

2.6

5.3

2.5

5.6

2.9

5.5

2.7

5.5

2.8

7.7

3.0

8.9

3.2

FY20211

262.0
245.9
7.6

95.5
2.9

Unit
billion JPY
billion JPY%

billion JPY%

In accordance with the decisions of business transfer, the Company has classified its US building materials business, anti-vibration rubber business, and chemical products solutions business as discontinued operations. Accordingly, depreciation and amortization, and R&D expenses show figures for continuing operations and exclude expenses of the three businesses.

Dividend per share
103 | Financial Data

Cash Dividends

FY201122

FY201232

FY201357

FY2014

Bridgestone 3.0 Journey 2022 Integrated Report100

FY2015130

FY2016140

FY2017150

FY2018160

FY2019160

FY2020110

FY2021

170

Unit
JPY

Financial Data | 104

Non-financial Data

All of the Bridgestone Group’s environmental data and a portion of its social data in FY2021
are verified by LRQA Limited (LRQA), a third-party institution, to ensure the accuracy andtransparency of this information. See the Bridgestone Group’s ESG Data online for complete
information including GRI-listed items for each data.
LEGEND

FY2021 data items in italic are those reviewed through the verification processes by LRQA.

Environment-related Data

FY2017FY2018FY2019FY2020

FY2021

5,047

5,233

5,051

4,150

4,611

thousand tonnes

723

698

698

722

(6.98)

704(6.12)

JPY thousand/tonnes

Unit

Resource productivity2

FY2019FY2020

FY2021

Greenhouse gas emissions(CO2 Scope 1)

1,871

1,868

1,807

1,504

1,722

thousand t-CO2

Greenhouse gas emissions(CO2 Scope 2, market-based)

2,327

2,263

2,139

1,659

1,664

thousand t-CO2

Greenhouse gas emissions (CO2,
Scope 1 + Scope 2, market-based)

4,197

4,131

3,946

3,162

3,387

thousand t-CO2

120,410125,110

110,378

100,097

113,421thousand t-CO2

NOx emissions10

2,055

2,041

1,969

1,629

1,839

tonnesSOx emissions10

1,141

937

850

603

588

tonnesVolume of waste generated11

303

352

359

289

293

thousand tonnes

Volume of recycled waste

274

311

308

259

277

thousand tonnes

Recycling waste rate

90

88

86

90

95

%

30

41

52

30

16

thousand tonnes

20

21

19

20

thousand tonnes

98.7

98.1

98.0

99.3

%

Greenhouse gas emissions (Scope 3)9Materials
Amount of raw materials used

FY2018(6.40)(6.29)(6.37)

Ratio of recycled andrenewable material3

－

－

－

37

37

%

(Ratio of renewable material)3

－

－

－

26

26

%

(Ratio of recycled material)3

－

－

－

11

11

%

(USD thousand/tonnes)

Waste

EnergyTotal energy consumption4

45,83846,01445,00238,31142,726thousand GJ

Volume of waste to landfill

Energy consumption (fuel)5

26,932

26,881

26,192

22,032

24,668thousand GJ

Volume of regulated hazardous
waste generated12

Energy consumption(purchased electricity)

4,802

4,929

4,852

4,192

4,654

thousand MWh

Environmental Management

Energy consumption(purchased steam)

1,630

1,429

1,382

1,191

1,248

thousand GJ

Energy consumption per unit of sales

1,258(1,422)(1,412)

1,261(1,398)1,276(1,324)

1,279(1,514)

1,316

GJ/JPY 100 million(GJ/USD million)

Renewable energy ratio(electricity)6

－

4.3

4.7

11.1

16.3

%

Total energy consumption(renewable)

－

885

953

1,767

2,847

thousand GJ

Total energy consumption(non-renewable)－

45,13044,04936,54539,879thousand GJ

68,68571,30368,30363,744

66,744

Water withdrawal (surface water)

3,258

2,926

3,131

2,856

2,729

Water withdrawal (groundwater)

10,192

10,312

9,708

8,480

9,086

Water withdrawal(water supply, industrial water)

18,81018,384

17,61916,137

17,249Water withdrawal (seawater)

36,426

39,68137,84436,27137,678

Unit

Emissions

FY2021 data items in bold are those for which assurance is provided by LRQA.

1

FY2017

Environment-related Data1

Sites with ISO 14001 certification13

－

98.7

Category 8 ,13 and 15 are excluded from the 15 categories in Scope 3 of the GHG protocol. Due to a partial change in the calculation method, the figures have been
updated from those disclosed in the past.
10
Emissions from combustion of fossil fuels estimated based on fuel consumption data and corresponding emission factors.
11
Total volume of waste including non-hazardous waste and regulated hazardous waste.
12
Calculated based on the laws of each country.
13
Within 139 sites that are targeted for ISO 14001 certification (As of December 31, 2021).
9

Water and Effluents
Total water withdrawal7

Total water withdrawal by
manufacturing facilities inwater stress areas8

3,450

3,495

3,208

2,873

thousand ㎥
Number of
Employees1

2,981

Data represents all Bridgestone Group facilities for the period of January 1 – December 31 for each year referenced. Part of the data includes estimated figures.
Sales per raw material used.
3
Within total material weight for tire products including tire casing for retreading.
4
Calculated by “fuel consumption + purchased electricity + purchased steam + solar power generation, etc. - electricity sold”.
5
Includes fuels used for in-house power generation.
6
Calculated by “(purchased electricity from renewable sources + self-generated renewable electricity)/(purchased electricity + self-generated renewable electricity- electricity sold)”.
7
Water withdrawal does not include the recycled water from a third party and rainwater.
8
Manufacturing facilities that have water-related risks due to the locations with the risk of deterioration of fresh water resources in terms of quantity and quality.
1

2

105 | Non-financial Data

FY2017FY2018FY2019FY2020

FY2021

Total

142,669

143,509

143,589

138,036

135,636Japan

28,37528,79329,54429,701

29,223

Americas59,75058,99857,05453,20452,460Europe, Russia, Middle East,
India and Africa

17,51017,63718,501

21,935

21,298China, Asia Pacific

37,03438,081

38,49033,19632,655Social-related Data

Bridgestone 3.0 Journey 2022 Integrated Report

1

Unit

persons

Data as of December 31 for each year referenced.

Non-financial Data | 106

Corporate and Investor Information■Corporate Name

■Number of Shares Authorized■Established■Number of Shares Issued■Head Office■Minimum Trading Units

1,450,000,000 （As of December 31, 2021）

Bridgestone Corporation
Socialrelated Data

Region/SBU

Japan SBU
Bridgestone Corporation
FemaleRatio1

Americas SBU
Europe, Russia, Middle East,
India and Africa SBU
China, Asia Pacific SBU

Total

Top
mgmt.
positions2

10.6

Other
staff and
positionsMgmt.
positions3

Juniormgmt.
positions 4

Total
mgmt.
positions

1.0

2.4

3.5

2.9

12.2

8.8

0.0

2.4

2.4

2.4

9.8

12.1

26.9

23.4

9.2

13.2

12.0

11.8
9.4

19.1

18.8

11.9

Data as of December 31, 2021 from 125,479 employers and employees (92.3% of
total workforce). The Bridgestone Group’s female ratio is verified by LRQA Limited, athird-party institution, to ensure the accuracy and transparency of this information.
2
Management positions with a reporting line no more than two levels below the CEO ineach company.
1

17.0

20.4
23.7

20.0
22.5

Unit

713,698,221 （As of December 31, 2021）

1931

100 shares

1-1, Kyobashi 3-chome, Chuo-ku,
Tokyo 104-8340, Japan%■Transfer Agent■Paid-in Capital

Sumitomo Mitsui Trust Bank, Limited

126,354 million JPY （As of December 31, 2021）

11.0■Number of Employees

8.5

135,636 （Consolidated, as of December 31, 2021）

All managerial position excluding “Top management positions” and“Junior management positions.”
4
First-line managers, junior managers and the lowest level of management within a company’s management hierarchy.
3■Technical Center

4-1, Marunouchi 1-chome, Chiyoda-ku,
Tokyo 100-8233, Japan■Independent Auditors

Deloitte Touche Tohmatsu LLC■Stock Exchange Listings

Japan: Tokyo and Yokohama

Tokyo, Fukuoka

United States: Akron, Ohio
Italy: Rome

China: Wuxi

Thailand: Pathum Thani
FY2017FY2018FY2019FY2020

FY2021

Unit

Total

16

9

14

11

11

persons（As of December 31, 2021）

Number of foreign members

8

5

7

6

6

persons

Rating Agency Name

Long-term Rating

Percentage of foreign members

50.0

55.6

50.0

54.5

54.5

%

Moody’s Japan K.K. (Moody’s)

A2

Total

52

52

60

51

16

persons

Standard & Poor’s（S&P）

A

Rating and Investment Information, Inc. (R&I)

AA

Number of foreign members

12

10

11

9

5

persons

Japan Credit Rating Agency, Ltd. (JCR)

AA+

Percentage of foreign members

23.1

19.2

18.3

17.6

31.3

%

Sites with ISO 9001 certification2

99.0

99.3

99.4

100.0

99.2

%

Lost-time injury frequency rate of
employees and temporary staff

－

－

2.863

2.57

2.75

Social- and Governance-related Data

Global Executive Committee Members

Executive Officers, Vice
Presidents and Senior
Officers1

Product Safety

Occupational Safety

Lost-time injury frequency
rate of contractors－－

1.863,4

2.31

0.79

Serious injury rate of employees and temporary staff

－

－

0.09

0.04

0.08

Serious injury rate of contractors

－

－

0.294

0.19

0.11

Occupational illness frequency rateof employees and temporary staff

－

－

－

0.505

1.32

Data as of December 31 for each year referenced.
1
Including officers of Bridgestone subsidiaries.
2
Bridgestone requires all manufacturing locations in which it has 50% or more shareratio to achieve ISO 9001 certification.

■Credit Ratings■Shareholder Composition（As of December 31, 2021）

Individuals and others
18.3％
Financial
institutions 31.5％
Foreign corporations,etc. 28.5％
Financial instruments
business operators 7.1％
Other corporations 14.6％■Common Stock Price Range（Tokyo Stock Exchange）
2011

2012

High

2013

2014

2015

2016

2017

2018

2019

2020

2,002

2,245

4,025

4,459

5,182

4,463

5,605

Low

1,506

1,602

2,248

3,328

3,754

3,089

3,973

5,515

4,734

4,082

5,467

3,906

3,888

2,862

3,307

2015

2016

2017

2018

2019

2020

2021

－

2021

Unit
JPY

■Common Stock Price Index1（Relative to Nikkei Stock Average）
Common Stock Price Index
Nikkei Stock Average

400

Updated due to revise the scope of data
The data is for six months from July to December 2019.
5
The data is for six months from July to December 2020.
3
4

300
200
100
2011
1

107 | Non-financial Data

Bridgestone 3.0 Journey 2022 Integrated Report

2012

2013

2014

Relative value is based on 100 as of January 4, 2011.

Corporate and Investor Information | 108

Bridgestone 3.0 Journey2022 Integrated Report

Bridgestone Corporation
https://www.bridgestone.com/contact/form_rd_04.html
Global CEO Office
IR Department
Corporate Sustainability Division
1-1, Kyobashi 3-chome, Chuo-ku, Tokyo 104-8340, Japanwww.bridgestone.com
June 2022