ESG Management Undertaken by the Sumitomo Rubber Group

Value Created and Delivered by TOWANOWAPlanning and Design• Higher Performance ×
Efficient Resource Usage○ Lightweight Tires○ Greater Fuel Efficiency○ Longer Tire LifeValueProvided• Targets for 2027 (vs. 2019 Levels)○ 20% Reduction in Tire Weight○ 30% Reduction in Rolling
Resistance   Next-Gen EV Tires to Launch in 2027

A unique approach, the TOWANOWA concept is best illustrated as a structure in which a “data ring” (here depicted inorange) coordinates and leverages data obtained in each value chain process, while the “sustainable ring” (in blue) facilitates the circulation of goods and materials throughout the value chain processes, eliminates redundant resource consumption and helps realize a circular economy. TOWANOWA is thus our Concept for a circular economy business model, which,by bringing together this sustainable ring and this data ring, continuously creates new value.

Material Development andProcurement• Promoting Resource Circulation
While Reducing CO2 Emissions○ Utilizing Sustainable Materials○ Sustainable Natural Rubber Procurement• Targets for Sustainable Materials Content○ 2030: 40%○ 2050: 100%
Biomass Materials

Recycled Materials

Production and Logistics

Sales and Usage

Recovery and Recycling• Realizing “Just-in-Time” Supply○E
 fficient Tire Freshness
Management○ Reining in Inventory Congestion○ More Efficient Logistics• Optimal Tire Management Service○ Tire Pressure Management○D etecting Signs of Wheel
Detachment○ Detecting Tire Wear Progression• Retreading Light Truck Tires○C ontributing to “Last One Mile”○R esource Conservation &Cost Reduction• Targets for 2030 (vs. 2021 Levels)○1
 0% Reduction in CO2 Emissions
During Transport○D omestic Modal Shift Rate: 30%• Optimal Tires for Customers○ Fuel (ICE) / Energy (EV) Efficiency○ Longer Tire Life○ Greater Safety• Putting ELT (End-of-Life-Tires) to Use○ Usage as Recycled Tire Materials○S tep Toward Realizing Circular
EconomyRetread tires

Under
Development

Use of ELTs

2050

100%

Next-generation ALL
SEASON tire series
Next-Gen Tire Featuring
ACTIVE TREAD
Technology (2024 Launch)

Realizing Tires Made from 100%
Sustainable Materials

GasOilCarbideData ring
• Tire Lifetime Simulation
Tire Lifetime Performance Design• ADVANCED 4D NANO DESIGNHigh-Performance Material Design• Data Amassed with SENSING CORE
Tire Long-Life Design• Tire Leap AI Analysis
Rubber Performance DeclinePrediction• Model Base Development (MBD)
and Design AI
Lightweight & Fuel-Efficient TireDesign• WAVEBASE (Cloud platform)
Accelerating Material Development• Tire Manufacturing Simulation
Improving Development Stage
Quality/Precision• SENSING CORE

• SENSING CORE

• Tire Pressure Monitoring System(TPMS)• Tire Pressure Monitoring System(TPMS)• AI and IoT platforms
Predictive Maintenance &Energy Savings• Radio Frequency ID Tags (RFID)
Building a Business Model toTake Full Advantage of Data

• Radio Frequency ID Tags (RFID)
Understanding the Usage Statusof Tires & Managing MaterialInformation• Maintenance Service Solutions• Robust Lineup of Tires to Meet
Diverse Needs• Tires Featuring Advanced Safety
Technology
Tires Featuring ACTIVE TREAD
Technology• Recovering Quality Base Tires forRetreadingReusing Same Base Tires MultipleTimes• Promoting the recovery of ELTs
Recycling for Use as Sustainable
Materials• Digital data infrastructure
Advanced Supply/Demand Predictions

Sustainable ring
• Evolution of SMART TYRECONCEPT
Resource Conservation,
Longer Lasting Performance,
Greater Overall Safety

57

Integrated Report 2023

• Promoting the Proliferation &Advancement of SustainableMaterials• Modifying Natural Rubber for
Better Performance & Productivity• Improved Tire Quality &Development Efficiency• Reduced of CO2 emissions during
tire production• Reduced Tire Production/
Supply Loss

Integrated Report 2023

58