SUSTAINABILITYREPORT
2016
Digest Version

The Bridgestone Essence
The Bridgestone Group’s mission is based on the words of its founder:“Serving Society with Superior Quality.” To fulﬁll this mission, Bridgestone Group has used theconcept of “foundation” to demonstrate the sustained commitment of employees to provide its
customers with world class products and services and to serve the communities where
Bridgestone does business. “The Bridgestone Essence” is composed of the above words,
integrated corporate culture, and diversity that today’s company has inherited and a sharedsense of values that can be embraced by Bridgestone employees around the world.

MissionServing Society with Superior Quality
We aspire to offer the best for our customers and to society, not only in terms of our products, services and technology,
but in all of our corporate activities.
Our commitment to quality is based on more than the desire for proﬁt, it stems from out of a passion for improving thesafety and lives of people everywhere.
Through our Mission, we strive to be a company trusted by the world - a company in which all of us can take great pride.

Foundation“Seijitsu-Kyocho”“Shinshu-Dokuso”[Integrity and Teamwork][Creative Pioneering]

Seijitsu-Kyocho is about adhering to principles of good faith as
you carry out your work, in the way you treat others, and as you
participate in and engage with society. It is about producing
positive outcomes by respecting a diversity of skills, values,
experiences, genders, and races and fostering teamwork.

Shinshu-Dokuso is about envisioning the future and proactively
challenging ourselves to identify and develop innovations thatwill further beneﬁt society and respond to customer needs -from the customer’s point of view. It is about unleashingcreativity and innovation to develop new business domains andcreating demand for new and beneﬁcial products through ourown unique methods.

“Genbutsu-Genba”“Jukuryo-Danko”[Decision-Making Based on Veriﬁed, On-Site Observations][Decisive Action after Thorough Planning]

Genbutsu-Genba is about taking the time to go on-site andpersonally verify the facts, then using those observations tomake informed decisions. It is about not being satisﬁed withthe current situation, and making informed decisions thatwill lead us ever closer to ideal products and solutions.

Jukuryo-Danko is about investigating all options and the fullrange of possibilities, giving careful thought as to how to
execute the decided course of action. It is about identifying
what is necessary and deciding on a vision. And once a
decision and course of action is determined, it is about
moving forward with a sense of urgency.

The Bridgestone Group

Sustainability Report 2016
Corporate ProﬁleCompany name

Bridgestone Corporation

02

Editorial Policy

04

The Overview of
the Bridgestone Group

Masaaki Tsuya

05

Bridgestone by Numbers

Paid-In capital

05

Financial Highlights

JPY 126.3 billion (As of December 31, 2016)06

Non-Financial Highlights

08

Top Commitment

12

Global CSR Commitment

12

Our Way to Serve

14

Bridgestone’s Priority Areas andManagement Fundamentals

16

Priority Areas

16

Mobility

20

People24

Environment

32

Corporate Governance35

Bridgestone Group Awards 2017

Headquarters

1-1, Kyobashi 3-chome, Chuo-ku,
Tokyo 104-8340, Japan
Member of the Board CEO and Representative Executive
Ofﬁcer Concurrently Chairman of the Board

Sales(consolidated)

JPY 3,337 billion (FY 2016)

Employees(non-consolidated) 13,617 (As of December 31, 2016)(consolidated)
143,616 (As of December 31, 2016)
Summary of Bridgestone’s manufacturing plants

169 plants in 26 nations(Bridgestone Group total as of April 1, 2017)

Major products and operations

Tires
Tires and Tubes for Passenger cars, Trucks
and buses, Construction and mining
vehicles, Industrial machinery, Agricultural
machinery, Aircraft, Motorcycles andscooters and Others
Automotive parts, Retreading materials andservices, Automotive maintenance andRepair services, Raw materials for tires andOthersDiversiﬁed products<Chemical and industrial products>
Antivibration and noise-insulating materials,
Polyurethane foam products,
Electro-materials, Industrial rubber
products, Building materials, Belts, Hoses
and Others<BSAM Diversiﬁed Products>
A Business under Bridgestone Americas, Inc.
supplying Commercial Rooﬁng materials
and Others<Sporting goods>
Golf balls, Golf clubs, Golf wear, Tennis
goods and Others<Bicycles>
Bicycles, Other bicycle goods and Others<Others>
Finance and Others

Solution Business
Leveraging the potential for more tighly integrating elementsof the company’s portfolio, the Bridgestone Group is working
on new “solutions” service package by combining
maintenance services, IT/sensing technology, tires anddiversiﬁed products to meet the needs of customers.

Editorial Policy
To communicate initiatives intended to increase corporate value over the medium to long term,
the Group reports ﬁnancial and non-ﬁnancial information in accordance with the following reporting
framework. In preparing these reports, the Group referenced the International Integrated Reporting
Framework proposed by the International Integrated Reporting Council (IIRC).
In the following report intended for a wide range of stakeholders, the Group describes its fundamental
management policies for achieving sustainable growth, clariﬁes the social and environmental issues
that it seeks to address, and proactively discloses the initiatives that it is taking to address those issues.
This report is a digest version of the Sustainability Report, which discloses non-ﬁnancial information,
forming a companion to the Annual Report, which conveys mainly ﬁnancial information.

Annual Report
Operational Review

Sustainability Report
Financial Review

Digest Version

CSR Website

http://www.bridgestone.com/responsibilities/index.html

Overview of Corporate Communication Tools
Library

Investor Relations

Our Way to Serve

http://www.bridgestone.com/corporate/library/

http://www.bridgestone.com/ir/index.html

http://www.bridgestone.com/responsibilities/ourwaytoserve/index.html

The Bridgestone Group− 02 −

About This Report
PeriodThis report focuses on data and activities for ﬁscal 2016 (the period from January 1 to
December 31, 2016), although it also includes some information applicable to years
before and after ﬁscal 2016. The contents of the Sustainability Report that are nothistorical facts are forward-looking, aspirational and based on information current as ofthe date of this summary and the Sustainability Report. Actual results may differ materiallyfrom those expressed in any forward-looking statement.

Organizational Coverage
This report covers the initiatives of the Bridgestone Group, including Bridgestone
Corporation and subsidiaries and afﬁliates around the world. Throughout the text,“Bridgestone” or “the Company” refers to Bridgestone Corporation, while “theBridgestone Group” or “the Group” refers to all group companies, including subsidiaries
and afﬁliates around the world. Notes are provided where this distinction does not apply.

Reference Guideline
Sustainability Reporting Guidelines (Version 4.0) (published by the Global Reporting
Initiative)
This report refers Standard Disclosures from the GRI Sustainability Reporting Guidelines.

Major Sustainability Ranking and Rating(As of May 2017)

Ranking/Rating System

Assessment in 2016

DJSI (Dow Jones Sustainability Index) World

selected

RobecoSAM Sustainability Award

Silver Class

CDP (Climate Change)A-

CDP (Water)A-

CDP Supplier Engagement Ranking

A− 03 −

Sustainability Report 2016 Digest Version

The Overview of the Bridgestone Group
The Bridgestone Group is the world’s largest tire and rubber company.
Since the early stage of its establishment, the Group started exporting its products
as well as overseas marketing research a year after the establishment aiming to
globally expand its business. Our history has been formed as we reﬁne ourtechnologies, pursue higher quality and aim to produce better society.
We continue to contribute to solving social issues in an innovative manner respondto the demand of our stakeholders by effectively using our strength and competence,
which we have gained through long history.

Bridgestone History Overview
Chapter 1.

From foundation to Deming Prize award

Chapter 2.

Merger, and Integration of Firestone

The corporate culture – Our DNA

The second foundation

1931

1988
Foundation with far ー Seeing globalization

Founder

Named to be a global company

Shojiro Ishibashi Stone Bridge
Ishi

Bashi

Bridgestone

1968

1988

The company’s motto
written by the founderFirestone Merger
Headquarters of Firestone
at that time

For the society“I am convinced that a simple proﬁtseeking business will never thrive, but abusiness that contributes to its society
and country will be forever proﬁtable.”
For the society with innovation“I have set my sights on contributing to
the advancement and development ofsociety by constantly seeking insight into
the changes of the times, trying to beahead of the times, and manufacturing
products of superior quality.”

Serving Society with Superior Quality

1931

1968

1995

2013

“Bridgestone Tire Company” founded in Kurume, Fukuoka

Earning Deming Prize

Returning to Indy-car race
for the ﬁrst time in 20 years

The 25th anniversary afterFirestone Merger

The Bridgestone Group− 04 −

2016 Bridgestone by Numbers (Financial Highlights)
Net sales(consolidated)

3,337billion yen

150countries
Sales by market

OthersJapan

510,000

470,000

tonnes

17％

83％

19%

49%

Europe,Middle East
& Africa

Others15%
The ﬁrst phase ofmanagement reform

tonnesThe
Americas

Japan

Tires

Chapter 3.

1.8million tonnes

overSales by Business Segment
Diversiﬁed
Products

Tire production volume(Tonnage of Rubber)Businessdevelopment

Production
Volume byGeographicalsegment

The Americas

Europe,Middle East & Africa

570,000

250,000 tonnes

17%

tonnes

The second phase of management reform

Chapter 4.

Reﬁnement of the
Corporate Philosophy“the Bridgestone Essence”

Management Goal - A truly global company /“Dan-totsu” in each and every aspects ofour business

2006

2012

2011

2015

To the future

2017
Practice of Bridgestone Essence－ Unveiled a reﬁned global CSR commitment,“Our Way to Serve”

Reﬁnement of the
Corporate Philosophy“the Bridgestone
Essence”

QualityCompleted theBridgestone
Essence Framework

2006
Introducing SBU (Strategic Business Unit) organization

Environment

MOBILITYPEOPLEENVIRONMENT

Safety2008～ Bridgestone Group Awards

2014

Bridgestone becomes Ofﬁcial
Worldwide Olympic Partner

Group Global TQM
2010～ Bridgestone
Conference

2016

Bridgestone becomes a Tokyo 2020
Paralympic Gold Partner− 05 −

Sustainability Report 2016 Digest Version

2016 Bridgestone by Numbers (Non-Financial Highlights)

Environment
Resource productivity improvement

Reduced amount ofenergy consumption(Base year:2005)31%
Recycled
waste ratio

382

thousand GJ

Amount of reclaimed rubbers

90% 16.4
Amount of raw material used
(Thousand tonnes)

5,000

4,844

4,811

4,831

(Thousand GJ)(Thousand m3)

50,0003,000

30,0002,000

20,0001,000

10,0002015

Sites with
ISO 14001
certiﬁcation*

46,311 45,177 44,795

77,649 77,545

71,581
55,67140,000

2016

2014

99.4%

2015

0

2016

2014

2015

2016

Amount of Greenhouse gas emissions
Scope2
Scope1

1.9%

1.4%

Total amount ofemission in 2016

CO2 emission reduction
ratio in the operations
and products’ after-use

127,110

Scope3*96.6%

thousandt-CO2(compared to the year 2005)

29%
Volume of generated waste

80,000Overall amount of water intake
Overall amount of discharge

63,008 61,744*Sites targeted by Bridgestone for ISO 14001 certiﬁcation.

CO2

million m3

Total water intake/Total water discharge

40,0002014

456

thousandtonnesTotal consumption ofprimary energy

4,000

0

Volume of recycled water

Volume and Ratio of recycled waste* Category 8, 13 and 15 are
excluded of the 15
categories in SCOPE 3 of
the GHG protocol.

Volume of waste sent to landﬁll

Recycling Volume
Recycling Rate
(Thousand tonnes)(Thousand tonnes)

400
300

314

297

298

400

89%

300

280

90%

90%

266

269

（%）

(Thousand tonnes)

100

40

75

30

200

200

50

20

100

100

25

10

0

0

0

The Bridgestone Group

2014

2015

2016

0

2014

2015

− 06 −

2016

34

2014

31

29

2015

2016

Scope of the Report Note about the Numerical Data
Organizations Covered:
Bridgestone Corporation and its consolidated subsidiaries and afﬁliates
The scope of covered may vary depending on the subject.
We have noted each such case individually.

SocialPeriod Covered:Fiscal year ended December 31, 2016

Number of employees(as of December 31, 2016)

143,616Europe13,518peopleJapanpeople28,326

peopleOther areas

41,228

2 11.8%people*Bridgestone Corporation Only

year-old

Number of staff promoting
the Global Manufacturing(masters)

Average years of employment*

13.5

people(including external directors)

people39.3

60,544

Percentage offemale directors(The Middle East, Africa, Russia, China, Asia Paciﬁc)Average age*

The Americas*Bridgestone Corporation Only

200

year

Sites with
ISO 9001
certiﬁcation*

193(people)Number of those participatedin lectures on the preventionof cartel/bribery*Bridgestone Corporation Only
(people)15,00013,00012,000

165
127

98.7%

10,000

100
5,000
0

*Sites targeted by Bridgestone for ISO 9001 certiﬁcation.

2014

2015

2016

0

3,912
2014

2015

2016

Governance
Board of Directors (as of December 31, 2016)

Directors’ Fees (January-December 2016)
Division

Directors

11(

people(outside directors)

Executive Ofﬁcer

7

among them,
the number ofoutside directors is

People)Auditors
corporate( outside)
auditors

Total− 07 −

Total Fees (million yen)people

213
(97)
562
24
(6)
800

13
(8)
10
4
(2)
27

Sustainability Report 2016 Digest Version

Top Commitment

In order to support its goal of becoming a truly
global company – and one truly committed to“Serving Society with Superior Quality” – theBridgestone Group launched “Our Way to Serve,”
its new global corporate social responsibility(CSR) initiative, in March 2017. The following
provides a brief overview of the background andgoals of our new CSR commitment as well as mythoughts about the importance of this initiative.
I invite you read our full Sustainability Report tolearn more about Bridgestone’s commitment tosustainability and the role that “Our Way toServe” plays in support of that commitment.

Member of the Board
CEO and Representative Executive Ofﬁcer.
Concurrently Chairman of the Board

Masaaki Tsuya

The Bridgestone Group− 08 −

Our New CSR commitment“Our Way to Serve”
Shojiro Ishibashi, who founded Bridgestone in 1931, expressed his belief that a company can not
be sustainable unless it also contributes to society. This philosophy continues today through the
Bridgestone Group’s mission, “Serving Society with Superior Quality”. Our new CSR commitment,“Our Way to Serve,” incorporates this philosophy and is intended to guide the Bridgestone Group
as it serves society while achieving the next stage of sustainable growth.
What do we seek to achieve through “Our Way to Serve” ? Simply stated, we commit to put
our ideals into practice by leveraging our strengths and competencies - thousands and dedicatedteammates worldwide, a global network, industry leadership and a history of innovation – as we
improve the way people move, live, work and play with a focus on our three Priority Areas:

Mobility: Delivering easier, safer smoother and seamless mobility through innovative technology
People: Addressing health, safety and education issues in our communities, andEnvironment: Continually working toward a sustainable society.
Along with these Priority Areas, we are committed to continuing to strengthen the basic
governance, compliance and behavioral characteristics expected of any responsible company –those elements we call Management Fundamentals. We have grouped those characteristics into
six categories and we are committed to leadership in each of them:Compliance, Fair Competition

Business Continuity (BCP) , Risk Management

Human Rights, Labor Practices

Safety, Industrial Hygiene

Procurement

Quality and Customer ValueOur CSR commitment is not a slogan. Nor is it a short-term campaign. Rather, it is at the coreof our enterprise, serving as a guide for the way we intend to do business. It serves as our guide as
we innovate and offer products and services of the highest quality and engage in businessactivities with sincerity and transparency, and demonstrate our ethical values in all that we do. It isalso important to know that our Priority Areas and Management Fundamentals build on our
experience with and success of our “22 CSR Focus Points,” our ﬁrst formal CSR program which welaunched in 2007, and that Our Way to Serve is consistent with commitments we have made to
our stakeholders and our communities. For example, in 2012 we articulated a long-term
environmental vision for 2050 and beyond which includes medium-term targets for 2020 toensure that we are on a clear path towards achieving this vision. As a further example, one ofthese goals is focused on reducing water consumption as one way for us to lessen ourenvironmental footprint. Speciﬁcally, Bridgestone’s global mid-term target is to reduce water
intake by 35% (per unit) by 2020 based on 2005 levels. As of 2016, we have already achieved a
28.5% reduction.

− 09 −

Sustainability Report 2016 Digest Version

Global CSR management
structure
In order to ensure the sustainability, and underscore the importance of Our Way to Serve,
Bridgestone is building a global CSR management structure. Consisting of members of ourglobal management team, the Global CSR Enhancement Committee (GCEC) will serve as acentralized resource to prioritize Bridgestone’s approach to global issues, and will plan andpropose global strategies for sustainability, as well as track the progress of our CSR
activities and how well these activities are embedded in our daily operations. The GCEC isalso charged with identifying areas for improvement and then sharing all of thisinformation, as well as recommendations for improvement, with the Global Executive
Committee (Global EXCO), whose members are the senior leadership team of the Company.
In this way, each member of the G-EXCO is actively engaged and participating in“Our Way to Serve”.

Using innovation to become a“Solutions Provider”
Bridgestone is known for using innovation in technology, business model and design toimprove the way people move, live, work and play and we will apply these skills in the areasof Mobility, People and Environment in order to contribute to ensuring a sustainable
society for future generations.
And while Bridgestone has always used innovation to develop a wide range of products
and services, going forward we intend to develop and offer solution businesses that canaddress social issues while fulﬁlling customer expectations. The result is a high quality, highinnovation beneﬁt for our customers, a positive impact on society, and the recognition by
our customers that Bridgestone is a trusted solutions provider. “Our Way to Serve” will help
us achieve this aspirational goal.

The Bridgestone Group− 10 −

Addressing management
issues to become a truly
global company
Sustainable corporate growth is not possible without a sustainable society. To address thequestions around ensuring a sustainable society, in 2015, the United Nations (UN) adopted
the Sustainable Development Goals (SDGs). In addition, in 2016, the COP 21 Paris
Agreement was adopted, calling for substantially zero CO2 emissions in the latter half ofthe 21st century.
As an industry leader, one which aims to be a truly global company and Dan-Totsu in
those businesses in which we participate, we recognize our responsibility to understandthe requirements articulated in these pronouncements and to assess the impact ourbusiness has on our world, all as we serve society by improving access to smart, safe
transportation; building healthy, resilient communities; and balancing business operations
with environmental stewardship. Society expects this from us, and those expectations are
growing each day.

Creating common value for ourcustomers and society
Put another way, by fulﬁlling our social responsibility as a company and securing
sustainable growth, earnings and competitiveness, we are creating value for all of our
stakeholders. And for that reason it is important to instill a commitment to CSR among allof our 140,000 employees across the 150 countries in which we operate. We are proud of
the fact that Bridgestone has been named to the Dow Jones Sustainability World Index(DJSI World), but this recognition only means that now we must work even harder toenhance enterprise value from both ﬁnancial and non-ﬁnancial standpoints.
The year 2017 marks a new start for the Bridgestone Group and its commitment to
CSR. To become a truly global company, we will proactively address social issues, work to
fulﬁll society’s expectations, and contribute to the realization of a sustainable environmentand society. Through active dialogue with a wide range of stakeholders, we aim to createcommon value for our customers and society.

− 11 −

Sustainability Report 2016 Digest Version

Global CSR Commitment

Improving the Way People
Move, Live, Work and Play

Our Heritage and Mission

Serving Society
with Superior Quality

Innovation

Solutions

Enhancing

Mobilityhnology
Tec

Smarter, safer, more accessible

Our Strengths and Competencies

Supporting

People andCommunities

Thousands of Teammates
WorldwideA sp
ir a ti o n s& Drea ms

Global Network

Enga

Industry Leadershipge menBe supportive, approachable,
comfortable

t

s
Worl
d C h a ll e n g e& S o cial I s s u e sAdvancing

Environmental
Stewardship
Be responsible

Based on Management Fundamentals

VISION“Understanding that Serving Society with Superior Quality is our heritage and our mission,and embracing our responsibility to future generations as a global leader in our industries,
Bridgestone and its teammates around the world employ innovation and technology to
improve the way people move, live, work and play.”

The Bridgestone Group− 12 −To Continue “Serving Society with Superior Quality”
From our beginnings in the 1930s, our founder, Shojiro Ishibashi, believed that a business that
contributes to society would do well by doing good. Today, this is more important than ever,with mounting social and environmental challenges threatening the planet and the quality oflife of all people living on it. Now, as a global leader, the Bridgestone Group is committed toserving society by improving access to smart, safe transportation, building healthy, resilient
communities, and minimizing our environmental impact. Looking forward, we remaincommitted to driving innovation around mobility, people, and the environment – so that we cancontinue to serve society with superior quality for generations to come.
“Our Way to Serve”, which is closely linked to the Bridgestone Essence, reﬁnes and builds upon
the recent 10 years of success and learning from the Bridgestone’s 22 CSR Focus Points.

Formulation Process for“Our Way to Serve”“Our Way to Serve” was formulated with

A truly
global company

reference to various international guidelines andinitiatives, including WBCSD Reporting Mattersand other outside opinions, ISO26000, the IIRC
Integrated Reporting Framework, the Corporate
Governance Code, Sustainable Development
Goals (SDGs),
ISO14001:2015,

MOBILITY

and GRI Standards.

PEOPLEENVIRONMENT

The Bridgestone
Essence

CSR
materiality
analysis

Formulation of the“22 CSR Focus Points”

The
Bridgestone
Essence
Framework
completed

Corporate mission reﬁned for thecompany’s 80th anniversary
Reﬁning of the Safety
Mission Statement

Establishment of the
Global Executive Committee(Global EXCO)

Reﬁning of theEnvironment Mission
Statement

Our Mission:

2012

2013

2014

SafetyFormulation of
the Quality
Mission Statement

Start of Global CSR Working Groups
Establishment of the Global CSR
Enhancement Committee (GCEC)“Serve Society with Superior Quality”
2011

Environment

Quality2015− 13 −

2016

2017

Sustainability Report 2016 Digest Version

Global CSR Commitment

Bridgestone’s Priority Areas andManagement Fundamentals
ReduceReducetrafﬁctrafﬁc
accidents
accidents
Rebuild
Rebuildtransportationtransportation
infrastructure
infrastructure

Economic
Economic
and andculturalculturaldevelopment
development

Safe Safe
transportationtransportation

MOBILITY
MOBILITY

Eliminate
Eliminatemobility
mobility
impairment
impairment

Smart
Smart
mobility
mobility

In harmony
In harmony
withwithnaturenatureAccessible
Accessible
mobility
mobility

Priority
Priority
Areas
Areas

Eliminate
Eliminate
wealthwealthdisparity
disparity

Contributing
Contributing
to a tosafer
a safersocietysociety

ProvideProvideeducational
educational
opportunities
opportunities

PEOPLEPEOPLE

Compliance,
Compliance,
Fair Fair
Competition
Competition

Promoting
Promotinghealthierhealthiercommunities
communities

Accessible
Accessible
and andinclusive
inclusiveeducation
education

Business
BusinessContinuity
Continuity(BCP),(BCP),
Risk
RiskManagement
Management
Human
Human
Rights,Rights,Labor
Labor
Practices
Practices

DisasterDisasterand disasterand disastera strong
a strongsocialsocial
risk reduction
risk reduction BuildBuild
infrastructure
infrastructure

Safety,Safety,Management
ManagementIndustrial
Industrial
HygieneHygieneFundamentals
Fundamentals
Procurement
Procurement
Quality
Quality
and and
Customer
Customer
Value
Value
The Bridgestone Group− 14 −

ReduceReduceCO2 CO2emissionsemissionsServing
Serving
SocietySociety
withwithSuperior
Superior
Quality
Quality

Our Way to Serve

Preserve
Preserve
biodiversity
biodiversity

As a company, Bridgestone has redeﬁned its global corporate social responsibility (CSR)
commitment, now called “Our Way to Serve.” “Our Way to Serve” aims to inspire Bridgestone
teammates to continue doing great work, by continuing to do good for the world. “Our Way
to Serve” organizes Bridgestone’s CSR efforts under three Priority Areas: Mobility; People; andEnvironment. “Our Way to Serve” reﬂects the company’s longstanding philosophy of Serving
Society with Superior Quality and a recognition that the best companies not only perform fortheir stakeholders, but also contribute to a better world.
Along with these Priority Areas, Bridgestone continues to strengthen the basic governance,compliance and behavioral characteristics expected of any responsible company through its
Management Fundamentals. These are exempliﬁed in the company’s commitment toleadership in six major areas including Compliance and Fair Competition; Business Continuity
and Risk Management; Human Rights and Labor Practices; Safety and Industrial Hygiene;
Procurement; and Quality and Customer Value.

“Our Way to Serve” System
BuildBuildaa
recycling-oriented
recycling-oriented
societysociety

ValueValue
naturalnaturalresources
resources

ENENVIRONVIRONMENTMENTTo implement “Our Way to Serve” on a global basis, Bridgestone Group has established acollaborative network made up of a global CSR management system, a regional CSR
management system, and working groups (WGs) for speciﬁc areas and functions.
The Global CSR Enhancement Committee (GCEC), which implements the global CSR
management system, evaluates the corporate group’s overall CSR policy based on working
group and regional issues.
The GCEC submits its recommendations to Global Executive Committee (G-EXCO), which
includes CSR as a management priority.

Global EXCO
Global CSR Enhancement Committee (GCEC)
SBUs Management

WGs President

J-Region

BSAM

BSEMEA

BSCAP

SBU
Representative

SBU
Representative

SBU
Representative

SBU
Representative

Regional
activities

Regional
activities

Regional
activities

Regional
activities

Address
Address
climateclimatechangechangeBuildBuilda carbon-freea carbon-freesocietysociety

Area andFunctional
Working
GroupsMOBILITYPEOPLEENVIRONMENT
Compliance, Fair Competition

Regional CSR Management System

Business Continuity (BCP), Risk Management
Human Rights, Labor Practices
Safety, Industrial Hygiene
Procurement
Quality and Customer Value

Bridgestone has established working groups (WGs) for CSR activities by
area and function, comprising strategic business units (SBUs) andregional members. By considering CSR from a perspective that includes
both regional issues and those to be addressed on a global basis,
Bridgestone has established a system to energize its global and regional
CSR activities.

− 15 −

Sustainability Report 2016 Digest Version

Priority Areas

Mobility
Mobility is just as important to human progress as it is to
everyday life. The ability to safely, efﬁciently, and affordably
travel between two points helps drive the economy forward
while enhancing the way we live, work and play.
Through high-performance mobility, we can improve qualityof life in our cities with better public transportation, reduced
congestion, and increased accessibility while at the same time
reducing chances of transportation-related accidents.
By using resources more efﬁciently, we can help deliver asafer and smarter transportation experience while we improvesocial and environmental outcomes across the globe.

The Bridgestone Group− 16 −

Mobility

PeopleEnvironment

To accelerate sustainable mobility innovations
through advanced technologies and solutions
Through innovative technology, the Bridgestone Group is committed to easier,safer, smoother and seamless mobility for our society and customers.

Accessible mobility

Smart mobility

Safe transportation

Making smooth and seamless
mobility available.

Utilizing unique technologies
to improve the way people/goods move.

Utilizing unique technologies
to enhance safe mobility.

The Value Generated by the Bridgestone GroupAs one of the world’s leading tire and rubber companies, the Bridgestone Group supports the movement ofpeople and goods around the world. Mobility is essential to everyday life today, and making it convenient andcomfortable contributes to a better society.
At the same time, the social problems arising from mobility, such as trafﬁc accidents and congestion, andregional inequality due to a lack of means of transportation, have become increasingly serious. The further
aging of societies and forecasted population growth have raised concerns that conventional mobility isunsustainable.
The Bridgestone Group is working to address these issues, utilizing its core competencies to resolve
individual problems through its solutions business and realize safer and more comfortable transportation.
We also seek to play a key role in building new mobilities society that people around the world can enjoy.

− 17 −

Sustainability Report 2016 Digest Version

Soci

al Issues

Case 1
Provide access tosafe, affordable,
accessible andsustainable transportsystems for all

The value provided by Bridgestone

Innovative IT Solutions for safer
and easier transportation
Bridgestone subsidiary Bridgestone do Brasil Industria e Comercio Ltda.
(BSBR), in cooperation with Bus Rapid Transit (BRT) the principal meansof transportation in Rio de Janeiro, conducted a demonstration of a
new transportation solution utilizing a proprietary IT system. By
expanding easily accessible public transportation, this initiative
promotes economic development and contributes to the creation of amore comfortable society for all people.
*BRT is an express bus rapid transit system that utilizes articulated buses and special trafﬁc lanes toprovide regular and rapid service. This eco-friendly, next-generation urban transport system has been
adopted mainly in emerging countries in recent years and is spreading into developed countries as well.

New transportation solution utilizing
a proprietary IT system

Tirematics

The Bridgestone Group

Tirematics is an IT system that uses sensors to measure thepressure and temperature of truck and bus tires, track thelocation of vehicles, and provide remote monitoring in realtime of a network. The system helps to prevent
unexpected transport disruptions due to tire failure, ensure
the safety of passengers, and maintain a regular schedule.
Tire pressure checks by maintenance workers are also
unnecessary, signiﬁcantly increasing the efﬁciency of tire
maintenance. Longer tire life and improved fuel efﬁciency
also help to reduce costs.

− 18 −

Mobility

Soci

PeopleEnvironment

al Issues
The value provided by Bridgestone

Case 2

Unique Safety Technologies

Make cities andhuman settlements
inclusive, safe,resilientand sustainable

Proprietary technologies for a safer
driving experience

Tires with run-ﬂat
technology
Run-ﬂat
Tire

Conventional
Tire

Sidewallreinforced
rubberRun-ﬂat tires have sidewall-reinforced
rubber, allowing the vehicle to be driven acertain distance at speciﬁed speeds, evenwith zero inﬂation pressure. Originallydeveloped for use on vehicles designed forphysically disabled people, this technology
through continual research is now widelyused in standard passenger vehicles, offering
a comfortable ride comparable to normal
tires. Bridgestone continues to expand therange of applicable sizes in an effort tomake this technology useful worldwide.

Bridgestone is helping to reduce trafﬁc accidents with a solutions
business using technology to support safe driving. Our measures
include developing tires that even when ﬂat allow a vehicle to be
driven to a location where the tire can be changed safely and thepractical application of technologies to support safe driving by
utilizing sensing technologies in tires—the only part of a vehicle incontact with the road—to acquire information on road surface
conditions.

Sensing technologies for a safer
driving experience

CAIS®*1 (Contact Area Information Sensing)
CAIS is a general termfor Bridgestone’s
tire-sensing
technologies, which
provide value toconsumers bycollecting andanalyzing tire contact
area data and using this information to classify
road conditions. In 2015, Bridgestone realized
the world’s ﬁrst*2 practical application of this tiresensing technology with classiﬁcation of roadconditions. This technology classiﬁes the roadconditions into seven different states (dry,semi-wet, wet, slush, fresh snow, compacted snow,
and ice) through an onboard system in real time.
Bridgestone promotes technological developmentfor not only tires but also entire systems in support
of a safe and secure mobile society.
*1 Contact Area Information Sensing. CAIS is a registeredtrademark of the Bridgestone Corporation.
*2 Among tires equipped with classiﬁcation of roadcondition technologies (Source: Bridgestone research,
November 2015)− 19 −

Continued pursuit of sure handlingon ice and snow

BLIZZAK studless winter tires

The leading brand of studless winter tire,
BLIZZAK uses Bridgestone’s acclaimed
foamed rubber technology to deliversafe and sure handling on icy roads.
Combined with various other technologies, these tires provide peace of mind
on slippery winter roads.

Sustainability Report 2016 Digest Version

Priority Areas

PeopleAs a global leader, seeking to build a truly global company,
Bridgestone touches a diverse array of communities across theworld. By enhancing how people live, learn and work, thecompany strives to have a positive impact on the communities inwhich it operates at the global and local levels.
Acting on these commitments and working with ourvarious partners, we will help build safer, healthiercommunities and make education more accessible andinclusive. We will build on our strengths and competencies toserve communities today and in future generations.

The Bridgestone Group− 20 −

Mobility

PeopleEnvironment

Employ our strengths to support our communities
and enhance the way people live, learn and workWe, the Bridgestone Group, are committed to utilizing our strengths andcompetencies to address health, safety and education issues in our communities.

Contributing toa safer society

Accessible and inclusive
education

Promoting healthiercommunities

Building safer communities
through services, products,
and company andindividual initiatives.

Expanding education and training
opportunities in order to develop
job and life skills.

Promoting access to the resources
people need to lead healthierlives.

The Value Generated by the Bridgestone Group
The Bridgestone Group conducts business in more 150 countries throughout the world. From the company’s
beginnings in the 1930s, founder, Shojiro Ishibashi, believed that a business which contributes to society would
do well by doing good. Today, this is more important than ever, with mounting social and environmental
challenges threatening the planet and the quality of life of all people living on it.
Now, as a global leader, Bridgestone is committed to serving society by improving access to smart, safe
transportation, building healthy, resilient communities, and balancing business operations with environmental
stewardship.
Looking forward, Bridgestone remains committed to driving innovation around Mobility, People and theEnvironment – so that it can continue to serve society with superior quality for generations to come.

− 21 −

Sustainability Report 2016 Digest Version

Soci

al Issues

Case 1
Build resilient
infrastructure,promote sustainableindustrialization andfoster innovation

The value provided by Bridgestone

Improvement in the prevention for local safetyand disaster prevention
When a natural disaster occurs, it is important that shelters that victims
use are functional to save many lives. We at the Bridgestone Group
contribute to the strengthening of disaster prevention of local areas byproviding Seismic Isolation Bearing that prevent buildings from collapsingin case of earthquake.
Moreover, the Group establishes disaster prevention functions in somelocal areas, which are usually seen only in hub areas in order to improve
the level of natural disaster prevention for the whole local areas.
The Bridgestone Group supports local areas to improve the ability of
responding to safeness and safety of local areas, disaster prevention andthe reduction of the number of local areas by providing its technologies,
products and infrastructure for disaster prevention.

Prevention of local areas from typhoons
and cyclones

Protection for life and assets from earthquakes

Seismic Isolation Bearing

Disaster Control Center

Leveraging technology which is core to our tire
production, Bridgestone has developed high-quality,
highly-functioning seismic isolation bearings. These
bearings help prevent buildings from collapsing andsustaining signiﬁcant damage from earthquakes. This
technology has allowed Bridgestone to contribute to thesafety and reliability in people’s everyday lives, as well as
greater economic certainty in local communities.

Bridgestone Americas, Inc. owns and operates a weather
center in one of its tire manufacturing facilities in thestate of Tennessee, USA. The center includes weather
spotter cameras, a local weather scanner, and current
weather radar, giving the ability to predict weather
patterns. This facility can alert surrounding areas wheninclement weather is imminent or occurring in the area.

The Bridgestone Group− 22 −

Mobility

Soci

al Issues

Case 2
Ensure inclusive
and quality education
for all

PeopleEnvironment

The value provided by Bridgestone

We support education for the next generation
Education can bring solutions for various social issues including theimprovement of income gaps, poverty, health issues, etc. We at theBridgestone Group promote activities that provide educational
opportunities to underdeveloped areas of the world, including free
vocational training relevant to electronics engineering and machineengineering, as well as language lessons and lectures on management skills.
We are committed to using our resources and capabilities to address
health, safety and education issues in our communities. We are focused on
helping to make society safer, making education more accessible andinclusive, and promoting healthier communities.

Staff development by providing educational
opportunities

Provision of educational programs that meetan individual’s demand

Vocational Training Facility

Training programs

Number of graduates(1984-2016)

713

P.T. Bridgestone Tire Indonesia
operates a vocational training
peoplefacility in Indonesia. The
facility offers a fair opportunity 54% joined the Bridgestone Group,
46% other companiesof learning as the facility fees
and living costs are free for two
years. Those, who have
graduated from the facility, now
work for companies in Indonesia
including a local Bridgestone ofﬁce.

In Spain, Bridgestone Hispania S.A. provides a machineengineering training for young people with intellectual
disabilities. The 400-hour program has been designed tocorrelate with the intellectual level of each participant.

− 23 −

Sustainability Report 2016 Digest Version

Priority Areas

Environment
As a global leader, seeking to build a truly global company,
Bridgestone’s business presence spans multiple countries, withhundreds of production, development and corporate locations,employing thousands of teammates worldwide.
With the social and environmental impacts of climatechange, resource scarcity, and nature’s degradation becoming
more clear, our communities and customers are demanding we
act to address these challenges in our everyday operations.
This will contribute to building a sustainable society bybalancing operations with environment, being in harmony withnature, and improving the quality of life for all.

The Bridgestone Group− 24 −

Mobility

PeopleEnvironment

To help ensure a healthy environment for
current and future generations...
We, the Bridgestone Group, are committed to continually working toward asustainable society with integrity and in unity with our customers, partners,
communities and the world around us.

In harmony with nature

Value natural resources

Reduce CO2 emissions

To contribute to biodiversity
through habitat enhancement,
and through environmental
education and research.

To continually improve natural
resource conservation throughoperational improvements andproduct design.

To continually reduce emissionsof Greenhouse Gases, including
CO2 from our products’
complete life cycle.

Sustainable Society through “Decoupling”“Decoupling” is a key concept in our Long-term Environmental Vision. The total number of automobiles
worldwide is expected to increase with the global population and economic development in emerging nations.
As a result, resource consumption will increase and the environmental footprint will become greater. There is apossibility of exceeding the earth’s capacity, through global warming or resource depletion. To work toward asustainable society, we shouldn’t simply accept that resource consumption and environmental footprint comewith population increase and economic development, but work to separate them. The United Nations
Environment Programme (UNEP) calls this separation “decoupling”. The Bridgestone Group established its
Long-term Environmental Vision based on decoupling.

Long-term Environmental Vision

Two aspect of “decoupling”
Human well-being
Economic activity(GDP)

Exceed the earth’s
capacity

Resource consumption and environmental
footprint in case of no action

Economic growth by keeping resource
consumption low (decoupling)
Resource consumption
Economic growth by reducing
environmental footprint (decoupling)
Environmental footprint
Time
Prepared by Bridgestone with reference to the UNEP

− 25 −We have established Mid-term targets andpositioning to meet the Long-term Environmental
Vision toward 2050 while working to build asustainable society. With the increased demand
accompanying population increases and improved
lifestyles, the world could possibly face signiﬁcant
problems related to climate change and resource
consumption. As the world’s leading tire and rubbercompany, the Bridgestone Group aims to contributeto the realization of a sustainable society bybalancing its operations with the earth’s capacity,
maintaining harmony with nature while meeting thevarious needs of the market.

Sustainability Report 2016 Digest Version

Looking ahead to the world in 2050

Working toward a sustainable society
The Bridgestone Group’s Environmental Mission Statement

To help ensure a healthy environment for
current and future generations...

Long-term
Environmental
Vision for 2050
and beyond

Mid-term
Environmental
Targets for 2020
(Base year:2005)

In balancewith nature*1(Contribution > Footprint)

Towards
100% sustainable
materials*3

Promote ecologicalconservation &restoration
Minimizing footprint(Reduce water intake
per unit*2 by 35%)

28.5% reduction in water
intake per unit (compared to
2005)

Reduce CO2 emissions

Resource
productivity
improvement

Signed the Sustainable
Natural Rubber initiative(SNR-i) established by theInternational Rubber Study
Group (IRSG)

31% improvement in
Resource productivity
Announcement of research
results for ImPACT*4

In harmony
with nature*1 “In balance with nature” is thecommitment of Bridgestone Group tocontribute to biodiversity throughhabitat enhancement, environmental
education and research.
*2 Bridgestone manages water intake
per production volume and sales foreach business unit. A weighted
average efﬁciency of the reduction
rate is used as an index.

per sales from operations andproducts’ after-use by 35%

Reduce rolling resistanceof tires by 25% and thereby
achieving CO2 reductions
during use exceeds all otheremissions in the product’s
lifecycle
29% reduction in CO2emissions per net sales fromoperations and products’
after-use (compared to 2005)
13% reduction in tire-rolling
resistance (compared to 2005)
Successful synthesis ofpolyisoprene rubber withadvanced control of themolecular structure

Local ecosystem conservation
activities

The Bridgestone Group

50% reduction of CO )( Overemissions
2

Enhancing contribution
activities

Main
Achievements
in 2016

Contribute to
globally agreed
target*5

Value natural
resources*3 The Bridgestone Group deﬁnes

sustainable materials as materials“1) that come from resources with aguaranteed continual supply, 2) thatcan be used as part of our businessover the long-term, and 3) that have a
low environmental and social impact
over the lifecycle from procurement
to disposal.”*4 The Impulsing Paradigm Change

through Disruptive Technologies
Program (ImPACT) aims to generateinnovative technologies that if
realized would revolutionize industry
and society. It was established topromote high-risk, high-impact,
ambitious research and development.

− 26 −

Reduce CO2
emissions*5 At the G8 Hokkaido Toyako Summit(held in July 2008), G8 leaders agreed
on a reduction of at least 50% ingreenhouse gas emissions worldwide
by 2050. The same year, at the Major
Economies Meeting on Energy
Security and Climate Change, thedeveloped countries plus certain
emerging nations, such as China,
India, etc, adopted this target as ashared global objective.

Mobility

PeopleEnvironment

In harmony with nature

Long-Term
Vision(For 2050 and beyond)

Activity
Concept

In balance with nature(Contribution > Footprint)
Water
resource
preservation &restoration

CO2
reduction

Educational
activities

Air
pollution

CO2
emissionsContribution

Ecosystem
preservation &restoration

Waste
production

Footprint

Research

Forestry
maintenanceWater
and soilpollutionLand
alteration

Water
intakeThe Bridgestone Group is committed to being “in harmony with nature” in accordance with thelong-term vision formulated at the tenth meeting of the Conference of the Parties (COP 10) heldin 2010. To accomplish this, we will maintain a constant understanding of the relationshipbetween our business and biodiversity, based on which we will deﬁne the priority issues that wemust address. “In balance with nature,” the Group’s long-term environmental vision for the thisgoal, is our commitment to contribute to biodiversity through habitat enhancement,
environmental education and research. Our business operations will take into account the impact
on the ecosystem as a whole. The Bridgestone Group is conducting activities targeting “inbalance with nature” throughout all business areas.

Relationship between the Bridgestone Group’s tire operations
and biodiversity
Since 2013, the Bridgestone Group has conducted a materiality analysis on its footprint on and contributions tobiodiversity made by the Group’s operations. This analysis is based on the interrelationship represented in theabove, which is used top prioritize issues. We will improve our activities by taking key actions in relation to theseissues in the future, while reviewing the priority issues to meet the changes in social needs.
Meanwhile, quantiﬁcation methodology for biodiversity have been developed by various organizations,
including the Natural Capital Protocol. Paying attention to these international trends, the Bridgestone Group has
promoted the qualitative and quantitative understanding of the relationships between its business operations andbiodiversity.
Priority Issues and Key Actions

Minimizing footprint

Enhancing contributions

Reduce impact on land utilization

Preservation and restoration of habitat
areas for wild plants and animals

Reduce impact on water intake

Improvement of natural rubber farm
productivity

Reduce air and water emissions

Water resource preservation or
restoration

Reduce CO2 emissions fromlifecycle stages

Reduction of CO2 emissions(customer use)

Reduce waste production− 27 −

Sustainability Report 2016 Digest Version

Minimizing footprint
Reducing the Impact of Water Intake
The Bridgestone Group employs cooling water and steam in
the production process. Continued use of such water
resources is a current production requirement that cannot be
separated from continuation of business for the Group. The
Group has therefore set the target of reducing water intake at
35% per unit*1 by 2020 throughout the Group, based on
2005 levels.
We are reusing/recycling water at many of the Group’s
manufacturing facilities, including operations in areas where
there are serious concerns regarding for water shortage suchas China and Mexico. We are also using water resources more
efﬁciently by enhancing the production process and using
rainwater.
In addition to implementing a risk assessment for water
quality and volume, we take efﬁcient use of water resources
and wastewater into account when building new tire facilities.
We use the WBCSD Global Water Tool*2 and WRI Aqueduct*3
to assess water risk at existing facilities and are studying
corrective measures for each location.

Target and Actual Figures of Water Intake at
Manufacturing Facilities (per Unit)(Index)100

Base 27.7% 28.5% 28.5%
year reduction reduction reduction

35%

90

reduction

80

Target

70
60
50
0

2005

2014

2015

2016

2020 (Year)*1 Bridgestone manages water intake by unit of production
volume and net sales for each business. A weighted average
efﬁciency of the reduction rate is used as an index.
*2 Water risk assessment tool developed by World BusinessCouncil for Sustainable Development (WBCSD)*3 Water risk assessment tool developed by World Resources
Institute (WRI)

Our Approach to Sustainable Natural Rubber
Because natural rubber consumption is expected to increase alongside the demand for tires, it is a business
imperative to foster a sustainable natural rubber supply. The Bridgestone Group recognizes sustainable natural
rubber as a key issue for the tire industry and for the Bridgestone Group’s sustainable growth.
Since 2016, the Bridgestone Group has been an active participant in the Sustainable Natural Rubber
Initiative (SNR-i), established by the International Rubber Study Group (IRSG). SNR-i is aimed at developing
criteria that balance economic, environmental and societal aspects to promote a global sustainable natural
rubber economy beneﬁting all industry stakeholders. Furthermore, we are ﬁnalizing enhanced procurement
guidelines to facilitate our own sustainable natural rubber supply.

Enhancing contribution
Technology Provision to Improve the Productivity of Small-Scale
Natural Rubber Farmers
The majority of natural rubber production in the world is conducted by small-scale rubber farmers in Southeast
Asia. The Bridgestone Group uses large volumes of natural rubber produced by such farmers. However, theproductivity of the rubber trees raised by these farmers is low and the quality and volume of natural rubber
produced vary. To help such small-scale farmers improve the quality of their operations, P.T. Bridgestone Sumatra
Rubber Estate (BSRE), a subsidiary that directly operates rubber farms in Indonesia, provides these farmers withthe productivity-improving technologies Bridgestone hasdeveloped on its own rubber farms.
The company started providing technical assistance to theagricultural training center established in the city of Siantar in
North Sumatra. The company also provided Hevea rubber tree
seedlings to the farmers and implemented a technical training
program for instructor candidates selected from various areas.
Such initiatives are expected to improve the quality of natural
rubber and income per unit area for small-scale farmers and help
control expansion of agricultural land utilization.

The Bridgestone Group− 28 −

Mobility

PeopleEnvironment

Value natural resourcesLong-Term
Vision(For 2050 and beyond)

Activity
Concept
Resource use
Resource
consumption will be
increased due toincreasing demands(Business as usual)Line ofecologicalcapacityA
B
C
Current status

Case 1

Towards 100% sustainable
materials
It is expected that an increase in population and the number of automobiles
will boost tire demand in the future. The Bridgestone Group’s goal is toimplement business operations in balance with the planet’s ecologicalcapacity. The Bridgestone Group has set the goal of using “100% sustainable
materials” in our products
action 1
as the long-term vision for
reduce raw material
consumption
2050 and beyond. As(enhance resource productivity)
Half-weight technology
necessary activities toAlong life technology
achieve this goal, we areaction 2
committed to taking therecycle resources & use
Beffectively
following three actions:retread technology and services
non-pneumatic tire(1) reduce raw material
recycled rubber
consumption (enhanceaction 3
A
resource productivity),
expand and diversify
renewable resourcesC(2) recycle resources andimprovements in rubber productivity
use them efﬁciently, anddiversiﬁcation of natural resources,
such as bio-materials
B(3) expand and diversify
A Recycled materials
renewable resources (i.e.,
2050 and beyond
technology aimed at zero
B New input of renewable materials
BAU
100% Sustainable
use of non-renewable(Business as usual)material
C Non-renewable materials
materials).

Research on resource conservation
tires using tough polymer composite

Thinner tire material reduces the weight of a tire which
contributes to lower vehicle fuel consumption and saves
resources by using fewer raw materials. However, making atire thinner requires ensuring sufﬁcient durability, and thedevelopment of tough materials that exceed existing
technology. Bridgestone participates in the Cabinet Ofﬁce’s
ImPACT*1 initiative, and conducted research aimed atcreating an ultrathin ﬁlm, durable “ﬂexible tough polymer.”
We announced the results in 2016. Through this research
we aim to develop a strong material that exceeds previous
limits and create tires that achieve greater resource
conservation.
Case 2

Activities to reduce environmental
impact of used tires through WBCSD

Concrete road surface travel
Bad

100
80

Wear rate(quotient)

About 60%
reduction

60
40
20

Good

0

Standard
composite

ImPACT researchcomposite

Result of veriﬁcation test using a rubber track
The test showed that the wear rate for running durability of the rubbercomposite developed through this research is 60% lower than that of a standard
composite, conﬁrming the validity of the research principle.
*1 The Impulsing Paradigm Change through Disruptive Technologies Program(ImPACT) aims to generate innovative technologies that if realized would
revolutionize industry and society. It was established to promote high-risk,
high-impact, ambitious research and development.

It is projected* that approximately one billion used tires will emerge worldwide each year. Reducing the environmental
impact of used tires is a common issue within the tire industry.
Bridgestone has been involved in the Tire Industry Project of the World Business Council for Sustainable
Development (WBCSD), which was established in 2006. As the tire and rubber company, the Company has worked
toward building a sustainable society in cooperation with other companies in the industry. This project aims to develop
an effective management system for used tires by encouraging related industries and governments in various countries
to appropriately manage used tires and reduce their environmental impact through the publication of “End-of-Life Tires(ELT): A Framework for Effective ELT Management Systems” and disclosure of survey results.
*WBCSD Tire Industry Project− 29 −

Sustainability Report 2016 Digest Version

Reduce CO2 emissions

Long-Term
Vision(For 2050 and beyond)Contribute to Globally-Agreed
Target(over 50% reduction of CO2 emissions)

Activity
Concept

Greenhouse Gas Emissions by Tire Lifecycle Stage (Converted to CO2 Base)*1
Raw material
procurement

Manufacturing

Distribution

Use (Driving)

After-use*2

Energy used to
produce raw
materials

Energy usedduringproduction

Fuel usage

Fuel usage

CO2 emitted
duringcombustion

86.4 %

9.8%
2.9%

0.6%

0.3%

As a company involved in the automotive industry, the Bridgestone Group is paying close
attention to the impact of CO2 emissions. Based on the projections of IPCC*3 and otherinternationally recognized agencies, the Group has established a goal to reduce CO2 emissions inour business operations.
Our efforts to reduce CO2 emissions go beyond tire manufacturing. The tire lifecycle stage that
accounts for the largest volume of CO2 emissions is “Use (Driving).” Tire contribution toautomobile exhaust emissions can be lowered by reducing rolling resistance, thus improving
vehicle fuel efﬁciency and contributing to the reduction of CO2 emissions from the vehicle.
The Group will continue its efforts to reduce CO2 emissions throughout our products.
Along with striving to mitigate climatechange by reducing the amount of CO2
emissions, the company recognizes the risk of
CO emissions fromclimate change to Group activities and isoperations andproducts’ after-use
Contribution from
implementing adaptation measures such as
avoided emissions
conducting research on sourcing natural rubber
at the usage stage
from areas other than tropical regions.
To reduce the volume of CO2 emissions overthe entire lifecycle of a tire, the BridgestoneGroup has set two CO2 reduction-related
targets so that by 2020 the contribution fromavoided emissions when the customer uses thetire exceeds the amount of its operations andproducts’ after-use.
2*1 Greenhouse gas emissions throughout life cycle of 1 fuel-efﬁcient passenger car tire (195/65R15): 243.9kgCO2e*2 Greenhouse gas emissions from after-use stage: 13.1kgCO2e (emissions reductions: 12.5kgCO2e)(Source: “Tyre LCCO2 Calculation Guidelines Ver. 2.0”, Japan Automobile Tyre Manufacturers Association, Inc.)*3 Intergovernmental Panel on Climate Change

The Bridgestone Group− 30 −

Mobility

PeopleEnvironment

Contribute to CO2 reduction at usage stage more than
all other emissions in the product lifecycle by 2020

Mid-term
Environmental
Targets

Reduce CO2 emissions per sales from operations and products’ after-use by 35%
Reduce rolling resistance of tires by 25% and thereby achieving CO2
reduction during use exceeds all other emissions in the product’s lifecycle(by 2020)

The Bridgestone Group is working to achieve its mid-termtargets to reduce the volume of CO2 emissions over theentire lifecycle of a tire. Considering the value when CO2emissions from operations and products’ after-use are offset
by contribution of CO2 reduction at usage stage*1, thereduction in 2016 was 67% (compared to 2005). We arecontinuing activities with a dual approach aimed atachieving that contribution to CO2 reduction during use
exceeds CO2 emissions from our operations and products’
after-use by 2020.

Difference in CO2 Emissions from Operations and Products’
After-use and Contribution to CO2 reduction at the Usage Stage(Thousand Basetonnes)year*1 Calculated based on “Tyre LCCO2 Calculation Guidelines Ver. 2.0” (The Japan Automobile
Tyre Manufacturers Association, Inc., April 2012)

15,00010,000carbonneutral

5,000

Target0

2005

2014 2015 20162020 (Year)29% reduction in CO2 emissions per net sales from operations and products’
after-use (compared to 2005)

Main
Achievements
in 2016

13% reduction in tire-rolling resistance (compared to 2005)

CO2 Emissions Reduction Rates by Life Cycle Stage (2016)
The Bridgestone Group has set a target of a 35% reduction in
CO2 emissions volume per net sales from operations and
Raw materials
Reduced by around 26%
products’ after-use by 2020. In 2016, total CO2 emissions
Manufacturing
Reduced by around 23%
decreased as a result of efforts to reduce wasted energy at all
facilities, and initiatives to convert to low-CO2 emissions energy
Distribution
Reduced by around 22%
usage. However, because of the decline in revenue from foreignexchange conversion and other factors, the reduction per net
After-use
Reduced by around 44%
sales was lower than in the previous year, at 29% (compared to*Rates of reduction per unit of sales in comparison to 20052005). Excluding the effect from last year’s exchange rate
ﬂuctuations, the Group continued to make steady progress toward achieving the reduction target. We will continue topromote further reductions in CO2 emissions throughout the entire supply chain, aiming to meet the 2020 target.
For the other target of a 25% reduction in tire-rolling resistance by 2020 (compared to 2005), the Group achieved
a 13% reduction in 2016. This CO2 reduction contribution is the equivalent of approximately 8.6 million tonnes*1.
Improving rolling resistance while maintaining safety is a difﬁcult task requiring innovative technologies. Bridgestone
has developed “NanoPro-Tech”*2 technology, and promotes sales of fuel-efﬁcient tires utilizing this technology aroundthe world, helping to reduce the volume of CO2 emitted at the usage stage. We are also considering the establishmentof new reduction targets after 2020.
Bridgestone’s CO2 reductions are veriﬁed by a third-party institution in an effort to ensure the transparency of
information.
*1 Calculated based on “Tyre LCCO2 Calculation Guidelines Ver. 2.0” (The Japan Automobile Tyre Manufacturers Association, Inc., April 2012)*2 NanoPro-Tech is a nanotechnology to analyze and control the molecular structure of rubber at the nanometer level.

CO2 Emissions Per Sales from Operations and products’ after-use
Other Than Use*3
Raw materials(t/100million yen)

600

Base
year

Manufacturing

Distribution

After-use

32% 37% 29%
reduction reduction reduction

(%)

35%

500

reduction

400

Target

300

100

Base
year

12% 12% 13%

reduction reduction reduction

25%

95
90

reduction

85
80

Target

75
70

200

65

100
0

Tire-Rolling Resistance Coefﬁcient

60
2005

2014

2015

2016

2020

(Year)

0

2005

2014

2015

2016

2020

(Year)*3 Includes CO2 emissions reduction activities and exchange rate ﬂuctuations of sales.

For more details of our activities in Environment, please see the website. http://www.bridgestone.com/responsibilities/environment/index.html− 31 −

Sustainability Report 2016 Digest Version

Corporate Governance

Basic Policy on Corporate Governance
The Group considers the enhancement of corporate governance to be one of its mostimportant management focus points. The Group believes that working to increase
management quality and enhance the transparency of decision-making is indispensable, andaccordingly, continually strives to strengthen corporate governance. This ensures that theGroup continues to fulﬁll its founding mission as stated in its corporate philosophy: “Serving
Society with Superior Quality.”
Based on this approach, in accordance with the responsibility and authority delineatedin the Administrative Authority Rules, and in line with the Policy Management Rules, theCompany is committed to developing, communicating, and abiding by fair, transparent
decision-making and management policies.
As one facet of initiatives to strengthen its corporate governance system, to achieve bothfurther strengthening of its internal control system and heightened speed in execution, theCompany transitioned to the “Company with Nominating Committee, etc.” model ofcorporate governance in March 2016. The Group will continue striving to further strengthen
both the efﬁciency and the effectiveness of management and execution.

Corporate Governance Structure
The Company has transitioned to the “Company with Nominating Committee, etc.” model and has a systemthat enhances the separation of management and operational responsibilities and allows the directors and theBoard of Directors to focus more effectively on overseeing the execution of business operations. At the Annual
Shareholders’ Meeting held on March 24, 2017, 11 directors were elected, including seven outside directors.
The Chairman of the Board, who is selected from among the directors in accordance with the Articles ofIncorporation and the Board of Directors’ Rules, serves as the chairperson of both Board of Directors’ meetings
and General Meeting of Shareholders.
In addition, items related to decisions on basic management policies, important business execution
matters, and other matters that must be determined by the Board of Directors are stipulated in the Articles ofIncorporation, the Board of Directors’ Rules, and Administrative Authority Rules. These matters are determined
after careful deliberations by the Board of Directors.
The Company has established and maintains a corporate governance system that functions throughappropriate, active performance of duties by the Nominating Committee, the Audit Committee, and theCompensation Committee, in conjunction with oversight of the executive ofﬁcers and directors by the Boardof Directors. The Nominating Committee has four members, all of whom are outside directors. This committee
deliberates on such matters as standards and policies for the fair, transparent appointment and dismissal of
directors. The Audit Committee has ﬁve members, consisting of three outside directors and two internal
directors. This committee conducts audits regarding the business execution of executive ofﬁcers and directors.
The two internal directors on the Audit Committee are full-time members of the Audit Committee. The
Compensation Committee has four members, all of whom are outside directors. This committee deliberates
on such matters as the details of compensation for directors and executive ofﬁcers.
Regarding the management system, the CEO and representative executive ofﬁcer (CEO) and the COO andrepresentative executive ofﬁcer (COO) are the leaders of the operating divisions. The CEO is principally incharge of overall management and strategy, and the COO is principally in charge of operations. At the sametime, these two ofﬁcers implement a system of mutual checks. The Company is further strengthening its
corporate governance system by separating and clarifying the respective roles and authority of the CEO andthe COO, advancing the sharing of information, and increasing the transparency of decision-making processes.
Further, under the CEO and COO, respective executive ofﬁcers are responsible for decision-making and thebusiness execution in relation to matters delegated to them by the Board of Directors. In addition, following
deliberations by the Ofﬁcer Nomination and Compensation Meeting, which is an advisory body to the CEO and
COO, full-time corporate ofﬁcers, who are elected by the CEO, are responsible for business execution under
the direction of the executive ofﬁcers.

The Bridgestone Group− 32 −

Corporate governance structure (as of March 24, 2017)
General Meeting of Shareholders
Board of Director (11)(include 7 outside directors)

Advisory Committee
to the Board of Directors
Inquiries

Nominating Committee
Audit Committee

Governance Committee
Compliance Committee

Reports

Management oversightOperational execution

Auditing

Executive ofﬁcer
CEO and Representative
Executive Ofﬁcer

Internal Auditing Ofﬁce

COO and Representative
Executive Ofﬁcer
Other policy management
meetings

Global EXCO

Corporate ofﬁcer responsiblefor internal auditing

Independent Auditors

Compensation Committee

Executive Operational
Committee and others

Internal
Audit

Ofﬁcer Nomination andCompensation Meeting
Executive ofﬁcers

Internal Control Systems

Departments in domestic/overseas Group companies

Advisory Committees to the Board of Directors
To further increase transparency of corporate governance, the Governance and Compliance Committees has
been established as advisory bodies to the Board of Directors. These advisory committees provide advice to theBoard of Directors in regard to such matters, the governance system and related issues, and overall complianceactivities. These committees are comprised of a total of seven outside directors and one or more internal
directors, who are members of the Audit Committee participate as observers.

Executive Operational Committee
With regard to the execution of business operations, the Company has established the Global Executive
Committee (Global EXCO) in 2013, which oversees business execution on a Group and Global basis, theExecutive Operational Committee and other policy management meetings. These Committees deliberate andreport on speciﬁc matters set forth in Company policy as well as other important matters. In addition to key
executive ofﬁcers such as the CEO and COO, full-time corporate ofﬁcers also participate in the Global EXCO
and the Executive Operational Committee meetings along with other policy management meetings.

Internal Control Systems: Basic Approach and Implementation
The Company implements audits through cooperation among the Audit Committee, the Internal Auditing
Ofﬁce, and the independent auditors.

− 33 −

Sustainability Report 2016 Digest Version

Auditing Structure
The Company implements audits through cooperation among the Audit Committee, the Internal Auditing
Ofﬁce, and the independent auditors.
In accordance with audit policies determined by the Audit Committee, the Committee works incooperation with the Internal Auditing Ofﬁce and other bodies to audit the execution of business duties byexecutive ofﬁcers and directors. These auditing activities include attendance at important meetings, such as
the Global EXCO and the Executive Operational Committee; interviews to ascertain the status of operations;reviews of important business documents; and on-site audits of business ofﬁces. Moreover, information andopinions are exchanged with the representative executive ofﬁcers, and meetings are held with such persons as
the corporate auditors of major subsidiaries in Japan. In addition, the Company has assigned a corporate ofﬁcerwith full-time responsibility for auditing to assist the operations of the Audit Committee. Under the supervisionof this corporate ofﬁcer, dedicated staff have been assigned to assist with audits by the Committee. Decisions
to select and replace this corporate ofﬁcer require the agreement of the Audit Committee.
The Internal Auditing Ofﬁce and internal auditing departments within the Company’s operating divisions
and major subsidiaries conduct internal accounting and operational audits of the Company and Group
companies. The Internal Auditing Ofﬁce makes annual audit plans and conducts on-site audits of each function,
operating division, and subsidiary.
In cooperation with the Audit Committee, Deloitte Touche Tohmatsu LLC performs the accounting audit of
the Company’s ﬁnancial statements.
The Audit Committee, the Internal Auditing Ofﬁce, and the independent auditors exchange information andopinions as necessary and generally maintain close contact, thereby working to further increase audit efﬁciency
and effectiveness.
Board of Director, Executive Ofﬁcer and Corporate Auditor Remuneration (January-December 2016)
Positions

Members

Amount of Compensation, Etc.

13 People¥213 million(of whom eight are outside directors)(of which ¥97 million is for outside directors)

Executive
Ofﬁcers

10 People¥562 million

Corporate
Auditors

4 People¥24 million(of whom two are outside corporate auditors)(of which ¥6 million is for outside corporate auditors)

Total

27 People¥800 million

Directors

1.Figures include two directors (one an outside director) who retired during the subject ﬁscal year, and one executive ofﬁcer who resigned.
2.Bridgestone transitioned to a “Company with Nominating Committee, etc.” model of corporate governance from a “Company with Board ofCompany Auditors” model through a resolution adopted at the 97th General Meeting of Shareholders held on March 24, 2016. Accordingly, theﬁgures in the above chart for the amount of compensation paid to corporate auditors and the number of auditors reﬂect the total amount for duties
performed and the number of corporate auditors during the period from January 1 to March 24, 2016.
3.The ﬁgure for total number of members is an overlapping total including a director who retired with the transition to the “Company with Nominating
Committee, etc.” model and was appointed an executive ofﬁcer, a corporate auditor who retired and was appointed director, and a person who
serves concurrently as director and executive ofﬁcer.

Report on the Corporate Governance CodeBridgestone Corporation submitted the report on the “Corporate Governance Code” to the Tokyo Stock
Exchange, with veriﬁcation concerning the state of correspondence to all principals. The “Corporate
Governance Code” was added to the listing rules of the Tokyo Stock Exchange in 2015 to contribute to therealization of effective “Corporate Governance” as the KEY principals. The Company publishes “Corporate
Governance Code Report” and published them on its website.
Through the explanation of the Company’s idea of the “Corporate Governance” and introducing efforts
towards it, Bridgestone Corporation is aiming to promote greater understanding of its “Corporate
Governance”.
http://www.bridgestone.com/corporate/library/corporate_governance/pdf/2016_Report_on_the_Corporate_Governance_Code.pdf

The Bridgestone Group− 34 −

Bridgestone Group Awards 2017

The Bridgestone Group Awards are a recognition program open to all organizations and employees of theBridgestone Group. The Awards were created with the purpose of increasing employee awareness ofcorporate activities based on the Bridgestone Corporate Philosophy, fostering a sense of unity among Group
employees and recognizing accomplishments. This program is the highest level of awards within BridgestoneGroup and plays an important role in working toward achieving the Group’s ultimate goal of becoming a truly
global company and “Dan-Totsu” in all aspects of our businesses. This year marks the 10th anniversary of the
program.
Using the framework established in our new CSR commitment “Our Way to Serve”, the awards fall into ﬁve
categories for 2017: “Achievement”, “Mobility”, “People”, “Environment” and “Management Fundamentals”.
Our global board members selected applications from all global business units to determine this year’s
winners. As a result, among all the various activities conducted by organizations and employees of the Group,
seven activities were selected for recognition this year.
The Bridgestone Group considers the Bridgestone Group Awards as an important management tool. Amid
signiﬁcant change in our operating environment, innovation and continuous improvement is essential in order
to secure a competitive advantage and create value for both our customers and society. By recognizing
outstanding activities through the awards and sharing examples of best practices, we believe we can achieve
further improvements across the entire Group.
The activities selected for recognition are as follows.

Achievement: Two Winners

Activating the Bridgestone Worldwide Olympic Partnership at the Olympic Games Rio 2016
Bridgestone Americas, Inc., Bridgestone Corporation and the Group Companies

This activity entails Bridgestone achievements leading up to and during the
Olympic Games Rio 2016. An integrated group of global leaders andcontributors collaborated to create the foundational team, operating structureand governance process for Bridgestone’s activation as a Worldwide Olympic
Partner. Operating against a short timeline, the team also successfully plannedand executed a variety of marketing, promotional, public relations, hospitality
and teammate engagement activities for its debut as a Worldwide TOP Partner at the Olympic Games Rio 2016.
These efforts helped increase global awareness for the Bridgestone brand, cultivate global corporate culture, andprepare the company to fully maximize its Worldwide Olympic Partnership through 2024.

Innovative Strategic Partnerships for Retail Channel Reinforcement
Bridgestone Europe NV/SA

This activity entails BSEMEA’s Strategic Partnerships. The retail channel
reinforcement is one of the key strategies for BSEMEA. BSEMEA developed
a strategic partnership plan and executed various activities including theacquisition of Speedy and the joint-venture with Pneuhage Management.
These activities contributed to the growth of BSEMEA business.

− 35 −

Sustainability Report 2016 Digest Version

Mobility: One Winner

The New Technology E-bike with Dual-Drive System
Bridgestone Cycle Co., Ltd. (BSC) and the Group Companies

This activity includes the development of E-bike equipped with the newtechnology “Dual-Drive” system. BSC launched three E-bikes with
Dual-Drive system: commuter bike, city cycle and bike with child carrier
to provide experience of “safety”, “reliable” and “lightly” to various
stakeholders. This unique technology also contributed to promoting
Bridgestone's technical capabilities to the public and increasing brandvalue.
People: Two Winners

30-Year Leukaemia Foundation Partnership Celebration
Bridgestone Australia Ltd. (BSAL)

This activity celebrates the continuous support for the Leukaemia
Foundation. BSAL has supported the Leukaemia Foundation for 30 years
since 1986 through various activities including charity events, donation oftransport vehicles and free accommodation for patients and their families.

Bridgestone Corporate University Training Center
Bridgestone Argentina S.A.I.C.

This activity entails the creation of Bridgestone Corporate University (BCU).
BCU was established in 2004 to offer educational and training
opportunities for stakeholders including employees, customers andneighbors. Additionally, a Training Center was opened in 2015 to provide
continuing education and training. Since it was created in 2004, BCU has
had 413 graduates and has trained more than 6800 stakeholders.
Environment: One Winner

Self Adhering Rooﬁng Membranes with “Secure Bond™” Zero Volatile Organic Compound Technology
Firestone Building Products Company, LLC (FSBP)This activity recognizes the development of Secure Bond™ adhesion
technology, a new technology that doesn’t use Volatile Organic
Compounds (VOC) and can be applied to various rooﬁng applications.
FSBP ﬁrst launched products with the technology in 2015. These products
have provided customers with easier and safer rooﬁng solutions comparedto similar existing materials, in addition to contributing to reducing
environmental footprint with zero VOC.
Management Fundamentals: One Winner

The Restoration Activities from Kumamoto Earthquake and Reinforcing Crisis Measures
Bridgestone Corporation,
Bridgestone Tire Japan Co., Ltd. and the Group Companies

This activity entails restoration activities toward Kumamoto Earthquake
occurred in April 2016. Group teammates in Japan cooperated with eachother and supported affected teammates and communities. This prompt
action contributed to the restoration of affected area, prevention ofhealth problem and early restart of production and sales. This crisis
response experience also led to the reinforcement of crisis measures.

The Bridgestone Group− 36 −

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Sustainability Report 2016 Digest Version

*Bridgestone Corporation*
CSR & Environmental Strategy Promotion Department
1-1, Kyobashi 3-chome, Chuo-ku, Tokyo 104-8340, Japanwww.bridgestone.com

June 2017