SUSTAINABILITYREPORT2017 - 2018

■ Corporate ProﬁleCompany namePaid-In capital

Bridgestone Corporation

JPY 126.3 billion (As of December 31, 2017)

Headquarters

1-1, Kyobashi 3-chome, Chuo-ku,
Tokyo 104-8340, Japan

Sales(consolidated)

JPY 3,643 billion (FY 2017)

Employees

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

13,706 (As of December 31, 2017)
142,669 (As of December 31, 2017)(non-consolidated)(consolidated)

Masaaki Tsuya

Summary of Bridgestone manufacturing plants

164 plants in 26 nations(Bridgestone Group total as of April 1, 2018)■ Major Products and Operations

Tires

Diversiﬁed Products

Tires and Tubes for Passenger cars, Trucks andbuses, Construction and mining vehicles,
Industrial machinery, Agricultural machinery,
Aircraft, Motorcycles and scooters and Others
Automotive parts, Retreading materials andservices, Automotive maintenance and Repair
services, Raw materials for tires and Others<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 to tightly integrate elements of the company’s
portfolio. The Bridgestone Group is working on new “solutions” service
packages by combining maintenance services, IT/sensing technologies
and tires and diversiﬁed products to meet the needs of customers andend users.

CONTENTS

Editorial Policy
To communicate initiatives intended to increase corporate

02

Bridgestone History
Overview

04

Bridgestone by Numbers

06

Top Commitment

12

Global CSR Commitment

value over the medium to long term, the Group reports
ﬁnancial and non-ﬁnancial information in accordance withthe following reporting framework: speciﬁcally theInternational Integrated Reporting Framework proposed by
the International Integrated Reporting Council (IIRC).
In the following report, intended for a wide range ofstakeholders, the Group describes its fundamental“Our Way to Serve”

management policies for achieving sustainable growth,

Enhancing “Our Way to Serve”
Interview with Global CSR Enhancement
Committee Chairperson

clariﬁfying the social and environmental issues that it seeks toaddress and proactively disclosing the initiatives to address
those issues. This report discloses non-ﬁnancial information.
It is a companion to the Annual Report, which conveys mainly

18

ﬁnancial information.
Sustainability Report

Priority Areas
case1

Utilizing Digital Tools to
Create Common Value With
Customers and Society

case2

Contributing to Next-Generation
Public Transportation

case3

Supporting Education in
Our Communities

case4

Realizing Societies Where
Everyone is Able to Live Lifeto the Fullest

CSR Website

Looking Ahead to the World in 2050
SUSTAINABILITYREPORT2017 - 2018https://www.bridgestone.com/
responsibilities/index.html

The Sustainability Report 2017-2018 and CSR website are inaccordance with GRI (Global Reporting Initiative) Standards (Core option).

In harmony with nature
Value natural resources
Reduce CO2 emissions

36

Compliance, Fair Competition
Business Continuity(BCP), Risk Management
Human Rights, Labor Practices
Safety, Industrial Hygiene
Procurement

Annual Report(Operational Review/Financial Review)https://www.bridgestone.com/corporate/library/annual_report/index.html

case5

PeriodThe Sustainability Report is published annually. This report focuses ondata and activities for ﬁscal 2017 (the period from January 1 to
December 31, 2017), although it also includes some information
applicable to years before and after ﬁscal 2017. The contents of the
Sustainability Report that are not historical facts are forward looking,aspirational and based on information current as of the date of the
Sustainability Report. Actual results may differ materially from thoseexpressed in any forward-looking statement.

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

Management Fundamentals

Effort on Realizing Sustainable
Supply Chain

Quality and Customer Value

58

Corporate GovernanceOutside Director’s Interview

64

Bridgestone Group Awards 2018

66

Stakeholders Communication

67

Third-party Assurance ofEnvironment Data and Social Data68

ESG Data

Bridgestone History Overview
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.

From foundation to Deming Prize award

Chapter 1.

Chapter 2.

Merger, and integration ofFirestone

The corporate culture – Our DNA

The second foundation

1931

1988

1931

1968

1988

“Bridgestone Tire Company” founded in Kurume, Fukuoka

The Company’s motto
written by the founderFirestone merger

Founder

Shojiro Ishibashi
Foundation with far
ー Seeing globalization
Named to be a global company
Headquarters of Firestone at that time

Stone Bridge
Ishi

Bashi

Bridgestone

Serving Society with Superior Quality

1968

2018

Earning Deming Prize

The 30th anniversary after Firestone merger

For the society“I am convinced that a simple proﬁt seeking business will
never thrive, but a business that contributes to its society andcountry will be forever proﬁtable.”
For the society with innovation“I have set my sights on contributing to the advancement anddevelopment of society by constantly seeking insight into thechanges of the times, trying to be ahead of the times, andmanufacturing products of superior quality.”

The Bridgestone Group− 02 −

Chapter 3.

The ﬁrst phase ofmanagement reform

Chapter 4.

The second phase of management reform

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

2017

Completed theBridgestone
Essence
Framework

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

Reﬁnement of
the Corporate
Philosophy“theBridgestone
Essence”

To the future

Quality
MissionStatement

Environmental
MissionStatement

MOBILITYPEOPLEENVIRONMENT

2014

Bridgestone becomes Ofﬁcial
Worldwide Olympic Partner

2016

Bridgestone becomes a Tokyo 2020
Paralympic Gold Partner

Safety Mission Statement

2008

2013

Bridgestone GroupAwardsEstablishment of the Global Executive Committee(Global EXCO)

2010

Bridgestone Group Global TQM
Conference− 03 −

Sustainability Report 2017-2018

Scope of the Report Note about the Numerical Data
Organizations Covered: Bridgestone Corporation and its consolidated subsidiaries
and afﬁliates. The scope covered may vary depending on
the subject. Such cases are noted individually.
Period Covered:Fiscal year ending December 31, 2017

Bridgestone by Numbers
Financial Highlights

Net sales (consolidated)

3,643billion yen

Business development

more
than

150countries

China,
Asia & Paciﬁc

Diversiﬁed
Products

Sales byBusiness
Segment

Europe,Russia,
Middle East
& Africa
Tires

83%

17%

(Tonnage of Rubber)

1.8

more
than

million tonnes

China,
Asia & Paciﬁc

Japan

16%

17%

Tire production volume

19%

Japan

470,000

470,000

tonnestonnesSales bymarketEurope,Russia,
Middle East &AfricaThe Americas

48%

Production
Volume byGeographicalsegment
The Americas

590,000

270,000

tonnestonnes

Non-Financial Highlights
Resource productivity
improvement

Recycled
waste ratio*1

37%

90%

(Base year:2005)

Energy consumption
per unit of sales

1,276

GJ/
100 million yen

Amount of raw material
used(Thousand tonnes)

Volume of recycledwater*1

426

4,811

4,795

5,039

50,0004,000

20,0003,500

10,000

The Bridgestone Group

2016

2017

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

35%

million m3

Total water intake/Total water
discharge*1
Overall amount of water intake(Thousand m3)

45,196 44,822 46,490

80,000Overall amount of discharge

77,54571,584 70,241

40,00030,0002015

thousandtonnes(compared to the year 2005)

Total consumption ofenergy*1

4,500

0

20.4

(Thousand GJ)

5,500
5,000

Amount ofreclaimed rubbers

061,74440,0002015− 04 −

2016

2017

0

2015

55,671

2016

55,7282017

Major sustainability
ranking and rating

Ranking/Rating System(As of May 2018)

DJSI (Dow Jones Sustainability Index) World●CDP Climate Change 2017

A-●

CDP Water 2017A●

CDP Supplier Engagement Rating 2018

A

Averageage*3(as of December 31, 2017)

142,669

years

Sites with ISO 9001
certiﬁcation*5

China, Asia & Paciﬁc

Sites with ISO 14001
certiﬁcation*2

37,034 people

Amount of greenhouse gas
emissions
Scope1*

2

133,142*3 Bridgestone Corporation Only

(Thousand tonnes)

96.8%

Volume and ratio of recycled
waste*1
Recycling Volume
Recycling Rate

(Thousand tonnes)

400

313

310

*4 Category 8,13 and 15 are excluded of the
15 categories in SCOPE 3 of the GHG protocol*5 Sites targeted by Bridgestone for ISO 9001 certiﬁcation

Scope3*4

thousand
t-CO2

296

*2 Indicates manufacturing plants that have obtained
ISO 14001 certiﬁcation

1.8%

Total amount ofemissions in 2017

300

*1 Indicates locations that have obtained ISO 14001 certiﬁcation

Scope2*2

1.4%

400

89

300

265

91

90

284

280

（%）

Volume of waste sent
to landﬁll*1(Thousand tonnes)

100

40

75

30

200

200

50

20

100

100

25

10

0

0

0

2015

2016

2017

years-old

13.9
99.0%
98.7%

Japan

17,510 people 28,375 people

Volume of generated
waste*1

39.8

Average years of employment*3

peopleEurope, Russia,
Middle East & Africa

59,750 people

selected●

Number of employees

The Americas

Assessment

0

2015

2016

2017

− 05 −

31

2015

29

29

2016

2017

Sustainability Report 2017-2018

Top Commitment

The Bridgestone Group continues
to work toward a sustainable
society as it aspires to become atruly global company.
The Bridgestone Group launched its new
global corporate social responsibility (CSR)
commitment “Our Way to Serve” in March2017. It is part of our comprehensive
management reform agenda initiated in2012 and is key to delivering on our Missionof “Serving Society with Superior Quality.”
We have made steady progress over the past
year to ensure that “Our Way to Serve”
becomes embedded within the culture of
our Group. Going forward, we will continue
to work toward that goal by identifying andimplementing new business models, such as
becoming a solutions provider, This will
create common value for our customers andsociety. Taken together, these actions willcontribute to a sustainable society, a goal
we can all embrace.

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

Masaaki Tsuya

The Bridgestone Group− 06 −

Sound Structure for ContinuingManagement Reform
Establishing a Sound Structure to Take Our
Reforms to the Next Level
While the global economy showed moderate recovery in 2017, it continued to be subject to external forcesthat limited its improvement, including continued uncertainty in the political and economic climate and a
succession of natural disasters in different parts of the world that caused damage on an unprecedented scale.
Combined with revolutionary and evolutionary changes in the mobility sector, 2017 was a challenging year
for us. We must prepare for the potential of many more turbulent years, as the Bridgestone Group—and infact all businesses—will continue to face accelerating changes in the global economy and in our industries.
Given these circumstances, it is imperative that we continue with our management reform agenda. And theGroup believes its road to success—and the achievement of its goals to become a truly global company and
Dan-totsu in all aspects of its business—continues to be based on commitment to its Mission and Foundation
Framework, which has at its heart the Company philosophy of “Serving Society with Superior Quality” anddedication to the foundations contained within the Bridgestone Essence.

Reform Framework

Management Goal

A truly global company“Dan-totsu” in our industries

Mission &Foundation

The Bridgestone Essence
Safety, Quality & Environmental Mission Statements
Global CSR Commitment “Our Way to Serve”

Basic Stance

Lean & Strategic
Optimize management on a Group and Global basis

Reform Tools

SBU (Strategic Business Unit) organization
Mid-term Management Plan

Priority Issues

Cultivating global corporate culture
Developing human resources capable of global management
Upgrading the global management structure− 07 −

Sustainability Report 2017-2018

Top Commitment

Our accomplishments in 2017 include the continuing enhancement of our corporate governance, which
reinforces our management structure, and the launch of our new global CSR commitment “Our Way toServe.” This commitment builds upon our earlier CSR work and is a key component of the Bridgestone
Essence Framework, which is central to our goal of taking management reforms to the next level.
The Group also heightened its business execution through the reinforcement of its global management
structure, which has stimulated open and constructive discussions, resulting in more effective
decision-making. These efforts have resulted in steady progress, strengthening the efﬁciency andeffectiveness of both the management and business execution of the Bridgestone Group.

Management Reforms: Three Priority Issues
By focusing on the three priority issues, the Bridgestone Group has made substantial progress in advancing
its management reforms:
The Bridgestone Group is focused on the continuous improvement of its distinctive CSR and Quality
Management (Safety/Disaster Prevention, Environment and Quality) activities. This year marks a signiﬁcant
50-year milestone in the Group’s journey toward cultivating a healthy corporate culture. Fifty years ago,
Bridgestone established its company motto, “Serving Society with Superior Quality,” which is now also its
Mission within the Bridgestone Essence. Also, in 1968, the Company was awarded the prestigious Deming
Prize in the ﬁeld of Total Quality Management and embarked on a journey to modernize its management
processes, systems and governance. Along this 50-year journey, it has institutionalized and operationalized
a number of elements that form the basis of its corporate DNA, leading it to where it is today.
It also recognizes that its DNA will evolve and strengthen in response to the environment, the marketplace,competition, technology and the political systems within which it operates in the next half century andbeyond. A clear example of this evolution is the development of the reﬁned Mission and Foundation
Framework including “Our Way to Serve,” which will help deﬁne what “Quality Management” needs to bein the future.

The Bridgestone Group− 08 −

Implementation of a Revitalized Global
CSR Commitment: “Our Way to Serve”
The Bridgestone Group is committed to enhancing its business domains and delivering value to its
stakeholders, all while fulﬁlling its Mission of “Serving Society with Superior Quality.” In light of those goals,
we formulated “Our Way to Serve” to establish the structure and articulate the ideals to achieve theseambitions in the coming years.

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.

Over the past year since its launch, we have taken every opportunity to educate our employees—all around the world—about “Our Way to Serve,” the reason for its creation, what it aims to achieve
and the need for each individual’s commitment to this initiative. We ﬁrmly believe that to deliver on the
responsibility to society, every employee, no matter their role or where they work, must embrace our CSR
philosophy contained within “Our Way to Serve” and support the principles and values contained within
this commitment.
To ensure its comprehensive implementation, we have also built a collaborative network under theauthority of the Global Executive Committee (Global EXCO), the highest body of business execution
within the Group. These committees include the Global CSR Enhancement Committee (GCEC),
the governing and oversight body for “Our Way to Serve,” as well as the Global Quality Management
Committee (GQMC), which is charged with governance and oversight for the company’s Quality
Management commitment*. This network will facilitate coordination among area- and function-speciﬁc
Working Groups and regional Strategic Business Unit (SBU)/CSR management in order to ensure
consistency and coordination of effort.

* see Page 17− 09 −

Sustainability Report 2017-2018

Top Commitment

Addressing Social Issues and Fulﬁlling
the Expectations of Society
Sustainable Society and the Bridgestone Group
Sustainable corporate growth is not possible without a sustainable society. Relatively recently,
governments around the world have begun to identify and implement programs intended to address theissues facing the creation of a sustainable society. For example, in 2015 the United Nations (UN) adopted
the Sustainable Development Goals (SDGs) and the COP 21 Paris Agreement, which became effective in2016. It calls for a substantial cut in CO2 emissions in order to limit the increase in global temperatures toless than 2 degrees Celsius in this century.
Taking into account these and other programs and initiatives and utilizing the framework provided by “OurWay to Serve,” the Bridgestone Group must demonstrate its social responsibility by recognizing the
economic, social and environmental impact of its global value chain andtake appropriate measures tomitigate impacts that negatively affect the establishment of a sustainable society. It must also work tocreate common value for customers and society by tapping into its strengths and expertise.

Corporate Responsibility to Address
Environmental and Social Issues
Now incorporated as a key component of the Mission & Foundation Framework, the Environmental Mission
Statement of the Bridgestone Group, reﬁned in 2011, is focused on three objectives: being in harmony withnature, valuing natural resources and reducing CO2 emissions. The Group took a further step in 2012 andformulated its long-term Environmental Vision. This vision looks ahead to the year 2050 and is based on
the concept of “decoupling*,” which is advocated by the United Nations Environmental Programme (UNEP).
As a company in the automotive industry, the Group pays close attention to the impact of CO2 emissions
and has been implementing Group-wide activities focused on reducing not only the emissions produced
through customers’ use of its products but also emissions generated during its tire production operations.
In 2010, to support its long-term Environmental Vision, the Group adopted the mid-term goal of reducing
emissions generated by the customer’s use of a tire enough to outweigh emissions generated by raw
material procurement, manufacturing and the tire’s after-use by 2020. It is steadily progressing toward thisambitious mid-term 2020 goal. Moving forward, it will continue to take additional steps to reduce CO2
emissions generated by the use of its products in combination with reducing CO2 emissions from its
operations to achieve both its 2020 mid- and 2050 long-term goals.
* decoupling population increase and economic development from environmental footprint(see Page 29)

The Bridgestone Group− 10 −

In addition to its focus on environmental issues, the Bridgestone Group takes a holistic view of sustainability
and places importance on addressing social problems and concerns, such as human rights, safety andresponsible labor practices, along the value chain. As a Co-Chair company and member of the Tire Industry
Project (TIP), operating under the umbrella of the World Business Council for Sustainable Development(WBCSD), in November 2017 Bridgestone participated in the announcement of a new tire industry initiativethat will focus on bringing sustainable natural rubber closer to reality. The Bridgestone Group alsoannounced a new Global Sustainable Procurement Policy in February 2018, reﬂecting its commitment toprocurement practices that drive actions to realize long-term environmental, social and economic beneﬁts.
The Policy recognizes that as the world’s largest tire and rubber company, Bridgestone has a responsibility
to be a leader in sustainability, and that in order to fully deliver on this responsibility, Bridgestone needs andexpects its suppliers and partners to work with the Company in pursuit of sustainable supply chains.
This requires never-ending efforts and collaborations with all industry players; Bridgestone is fullycommitted to these efforts.

To Become a Solutions Provider
The Bridgestone Group has always used innovation to develop a wide range of products and services.
It remains committed to utilizing these competencies in connection with the development andimplementation of business solutions that can address social issues while fulﬁlling customer expectations.
The result will be high quality, innovative beneﬁts for its customers, a positive impact on society andrecognition from its customers and end users that Bridgestone is a trusted solutions provider. “Our Way toServe” will help the Bridgestone Group achieve its aspirational goals to beneﬁt society and fulﬁll its
responsibility in all its business domains.
As it works to become a “truly global company,” it will continue to focus on securing sustainable growth,earnings and competitiveness. At the same time, the Group will proactively address social issues, identify
ways to fulﬁll society’s expectations and contribute to the realization of a sustainable environment andsociety. Through active dialogue with a wide range of stakeholders, it aims to create common value for its
customers, end users, employees and society.

− 11 −

Sustainability Report 2017-2018

Global CSR Commitment

Our Heritage and Mission
vationInno

Serving Society
with Superior Quality

VISION“Understanding that Serving

utionsloSol ogyhncTe

Our Strengths and Competencies

Society with Superior Quality is ourheritage and our mission, andThousands of Teammates
Worldwide

embracing our responsibility tofuture generations as a global
leader in our industries,

Global Network

Bridgestone and its teammatesaround the world employ
innovation and technology to

ir a

Eng

a

World

Industry Leadership

improve the way people move, live,

A sp

work and play.”

Based on Managem
Compliance,
Fair Competition

Business
Continuity (BCP),
Risk Management

Human Rights,
Labor Practices

Background

Businessand humanrights
Improvementof qualityof lifeDiversity
andinclusion

Responsible
supplychain

The Bridgestone Groupenvironment and sustainability, increasing
EvolutionofmobilitySocialTrend &
Issuesglobal population, climate change and SDGs,
social expectations regarding the roles that
individual corporations play in ensuring thefuture health of the world have been

Increase inpopulation andchanges in
population
structure

Rapid
urbanization

Loss ofbiodiversity

With growing awareness about theincreasing.
Through “Our Way to Serve,” Bridgestone aims
to meet these expectations, and as an industry
leader, fulﬁll its responsibilities for the future.

ClimatechangeResource
depletion− 12 −To Continue “Serving Society
with Superior Quality”

Improving the Way People
Move, Live, Work and Play

“Our Way to Serve” is closely linked to themission of the Bridgestone Essence of “Serving
Society with Superior Quality.” It reﬁnes andEnhancing

Mobilitybuilds upon the Group’s 10 years of success andSmarter, safer, more accessible“Our Way to Serve” we leverage our strengths

learning from its 22 CSR Focus Points. Throughand competencies—thousands of teammatesworldwide, a global network, industry

ams

Supportinga ti o n s

r
&D

e

People andCommunities

leadership and a history of innovation—to

Be supportive, approachable,
comfortableplay. “Our” refers to the individual leaders andimprove the way people move, live, work andemployees at all levels of Bridgestone’s
worldwide organization, while “Serve” meanstge menall team members incorporating the Priority

Advancinges
C h a ll e n g s s u e sIl& S o cia

Environmental
Stewardship

Areas and Management Fundamentals into their

Be responsible

their roles and go about their everyday duties.

consciousness and plans as they work, fulﬁll“Our Way to Serve” is the core of theBridgestone Group’s business and the guiding
principle for everything it does.

ent Fundamentals
Safety,Industrial Hygiene

Procurement

Quality andCustomer Value

Development Process
STEP

1

STEP

2

Identiﬁcation of Issues

Main International Guidelines andInitiatives Referenced

Value chain analysis to understand and assess the impact the BridgestoneGroup has on society
2 Analysis of the ﬁelds where Bridgestone’s technologies and innovation canhelp resolve social problems
1

3● ISO26000● OECD Guidelines for Multinational Enterprises● SDGs● WBCSD Vision 2050

Prioritizing Issues andRestructuring Existing CSR Program● Guidelines and research reports frominternational agencies (UN, etc.)

Internal working groups of global team members consider the issues, invite
review by internal and external stakeholders, and systematically organize a plan.
STEP● Outside opinion (WBCSD, etc.)

Management Approval
Plan is deliberated by Global EXCO*, Bridgestone’s senior leadership team, andapproved by the Board of Directors* Global Executive Committee− 13 −“Our Way to Serve” was developed byreferencing outside opinions,international guidelines andinitiatives, and employee surveys
matching these to stakeholder needs,social problems and the issues facing
the Bridgestone Group.

Sustainability Report 2017-2018

Global CSR Commitment

The Importance of the UN SDGs for Bridgestone
The SDGs adopted at the UN Sustainable
Development Summit in 2015 are a set of 17
global goals with 169 speciﬁc targets to realize asustainable world. The Bridgestone Group is
working to help achieve these goals as part of its
responsibility as a global corporation.
The Bridgestone Group compared its business
operations as well as its policies and measures forsustainability in order to identify areas where it canleverage its strengths and capabilities to help
resolve problems. And the Group is actively
pursuing measures for solutions.

The areas in which we can contribute

Priority Areas and Management Fundamentals of“Our Way to Serve”
Increase inpopulation andchanges in
population
structure

Evolutionofmobility

Rapid
urbanization

Smartmobility

Accessible
mobility

MOBILITY
Safe
transportation
Diversity
andinclusion

Loss ofbiodiversity

PEOPLE

Priority
Areas
Contributing
to a safer
society

In harmony
with nature

ENVIRONMENT
Accessible andinclusiveeducation
Businessand humanrightsValue natural
resources

Promotinghealthier communities

Compliance,
Fair Competition

Business
Continuity (BCP),
Risk
Management

Reduce CO2
emissions

Responsible
supply chain

Improvementof qualityof lifeHuman Rights,
Labor Practices

Safety,Industrial
HygieneClimatechangeProcurement
Quality andCustomer ValueManagement Fundamentals
The Bridgestone GroupResource
depletion− 14 −

Relationship Between “Our Way to Serve”
and the Management Reform Priority Issues forPriority Areas

Management Fundamentals

Areas in which the Bridgestone Group can utilize its
strengths and competencies to generate common
value (value for both customers and society)through innovation and cutting-edge technology

Areas for measures essential as a responsible
corporation, such as compliance with ISO26000,
and adherence to basic rules and social norms

Global CSR Commitment

Management
Fundamentals

Priority Areas

Areas of particular
contribution/impact
from the beneﬁciary’s
perspective● Compliance, Fair Competition● Business Continuity (BCP),

Risk Management

MOBILITYPEOPLEENVIRONMENT● Human Rights, Labor Practices● Safety, Industrial Hygiene● Procurement● Quality and Customer Value●

Priority issues related
to business models,
and the source ofvalue creation andcompetitive advantage

Rapid
urbanization● Increase inpopulation andchanges in
population
structure●

Diversity andinclusion● Business andhuman rights● Improvement ofquality of life●

Loss of biodiversity
Resource depletion● Climate change●●●

Responsible
supply chain

Evolution ofmobility● Globally coordinated brand strategies● Olympic and Paralympic Partner

Priority Issues for Management Reform*2

Cultivating global
corporate culture● Establish an R&D structure● Advance brand strategy● Innovation (technology, businessmodel, and design)● Continuous Kaizen● Shift from products to solutions● Open innovation (industry‐government‐university

cooperation), technological innovation● Continual improvement in all aspects of management● Efforts to realize a sustainable society

Developing humanresources capable ofglobal management
Upgrading the global
management
structure● Governance: enhancement ofgovernance systems● DP business: expansion of theDiversiﬁed Products businesses*1 Global Executive Committee● Facilitation of programs designed to cultivate global leaders● Utilization of Global EXCO*1● Pursue global management issues utilizing Global EXCO*1 and committees● Reform and development of diversiﬁed diversiﬁed*2 see Page 7− 15 −

Sustainability Report 2017-2018

Global CSR Commitment

Enhancing “Our Way to Serve”
Interview with Global CSR Enhancement Committee Chairperson

We are making“Our Way to Serve”
an integral part of theBridgestone culture.
Christine Karbowiak
Vice President and Senior Ofﬁcer ofBridgestone Corporation
Deputy Chair, Chief Administrative Ofﬁcer, Chief Risk Ofﬁcer
and Executive Vice President ofBridgestone Americas, Inc.

Key person Interview

Yuichi Nakada“Our Way to Serve” is deeply ingrained at
Japan Tire as a guideline for longer-termbusiness planning and improvement
activities. Japan Tire is helping to solve
customer problems and social issues
throughout the value chain to prepare forthe coming mobility society and thedramatic changes in industry and social
values.

James DeMouy

Vice President and Ofﬁcer
Japan Tire SBU Business Planning,
Japan Tire SBU Quality Management and Chief Quality Ofﬁcer,
Japan Tire Concurrently COO, Japan Tire SBU Bridgestone Corporation

Martha White
Vice President,
Human Resources and CSR,
Bridgestone EMEA

The Bridgestone Group

Vice President ofEnvironmental, Health
Safety and Sustainability
Bridgestone Americas,Inc.

We are a very broad and diversiﬁed region.
Thanks to “Our Way to Serve” which serves
as a clear guideline, our extended CSR
network of colleagues and committees are
now aligning their projects related to ourPeople priority area. They are focusing on
impactful projects that address health,safety and education issues in ourcommunities. Today, we are also working
on ensuring we link our activities with thegoals and KPI’s deﬁned by the UNSDG’s.

− 16 −Paul Choo
Vice President,
Human Resources & CSR
Bridgestone Asia Paciﬁc Pte. Ltd.

We are aligning our global
environmental priorities to beconsistent with the global businessactivities of Bridgestone and toachieve our longer term “Our Way
to Serve” objectives. Our
immediate challenge is supporting
the roll-out and implementation of
the Global Sustainable Procurement
Policy (see Page 52-53).

As a part of the Bridgestone’s global CSR& Sustainability team, I am privileged tocontribute to the continuous
improvement of our distinctive CSR and
Quality Management (Safety/Disaster
Prevention, Environment, and Quality)
activities. In our home base of Asia, theEnd-of-Life Tyres (ELT) challenge is apressing issue, and we need to ﬁnd
solutions that offer a positive impact for
the environment and local communities.

What is your role as GCEC chairperson?

initiative With “Our Way to Serve,” we are able to clearlydeﬁne the areas where we as a company can contribute

My role is to help facilitate the efforts of the Working

and really make a difference, which I see as one of thisGroups (WGs), to give them guidance from a global

new initiative’s primary beneﬁts

enterprise perspective of the Company’s strategy andthen to allow them to ﬁnd ways to inﬂuence the strategy

What is the next challenge?

from the perspective of CSR. I provide encouragement,high level direction and support to the members of the
WGs.

To continue to build on “Our Way to Serve” in a way

Often I step back and ask, “Are the WGs in fact deliveringthat incorprates evolving social needs. We need toon their missions?”. From my vantage point, I am able to

make sure that as society evolves our CSR focus evolves

observe cross-cutting themes and challenges, provide

so we can better address the enhancing needs. We also

support, and help teams ensure they’re performing

must ensure that we don’t lose momentum. Rightconsistently within their approved missions.

now, there is energy around “Our Way to Serve,” so weneed to maintain that energy and focus so we canbuild on it. Those to me are the primary two

How do you see CSR for Bridgestone
after launching “Our Way to Serve”?

challenges. Although we had a successful launch in2017, but that is just the beginning and the ﬁrst baby
step of a long journey. We must truly integrate “Our

There is a good deal of excitement and energy aroundWay to Serve” into Bridgestone’s culture and into

“Our Way to Serve”as a simpliﬁed and enhanced CSR

everything that we do.

Global EXCO*1“Our Way to Serve”
SystemGlobal CSR Enhancement Committee(GCEC)

Global Quality Management
Committee (GQMC)

Chairperson

Chairperson
Secretary
GeneralSecretary General

J-Region(Japan)

BSAM

WGs President

WGs PresidentManagements TeamBSEMEA

BSCAPGCEC WGs(SBU/GMP)(the Americas)(Europe,
Russia,Middle East
& Africa)(China, Asia
& Paciﬁc)

●

●

●

●

Mobility

●

●

●

●

People●●●●Environment

●

●

●

●

Compliance, Fair Competition

●

●

●

●

BCP, Risk Management「Our Way to Serve」

●

●

●

●

Human Rights, Labor Practices

6MF*6 WGs

●

●

●

●

Procurement

●

●

●

●

Safety, Industrial Hygiene

●

●

●

●

Quality and Customer Value

GHO*3/GMP*4SBU*2「Our Way to Serve」

3PA*5 WGs

*1 Establishment of the Global Executive Committee*5 Priority Areas *6 Management Fundamentals*2 Strategic Business Unit

*3 Global Head Ofﬁce− 17 −GCEC WGs(SBU/GMP)*4 Global Management Platform

Sustainability Report 2017-2018

Priority Areas

To accelerate sustainable mobility
innovations through advanced
technologies and solutions

Mobility

Mobility is just as important to human progress as it is to everyday life. The ability tosafely, 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 quality of 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 a safer and smartertransportation experience while we improve social and environmental outcomes
across the globe.

Employ our strengths to support ourcommunities and enhance the way
people live, learn and work

PeopleAs a global leader, seeking to build a truly global company, Bridgestone touches adiverse array of communities across the world. By enhancing how people live, learn
and work, the company 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 our various partners, we will
help build safer, healthier communities and make education more accessible andinclusive. We will build on our strengths and competencies to serve communities
today and in future generations.

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

Environment

The Bridgestone GroupAs a global leader, seeking to build a truly global company, Bridgestone’s businesspresence spans multiple countries, with hundreds of production, development andcorporate locationst employing thousands of teammates worldwide.
With the social and environmental impacts of climate change, resource scarcity,and nature’s degradation becoming more clear, our communities and customers aredemanding we act to address these challenges in our everyday operations.
This will contribute to building a sustainable society by balancing operations withenvironment, being in harmony with nature, and improving the quality of life for all.

− 18 −

Case

p.20

1

Utilizing Digital Tools to
Create Common Value With
Customers and Society
Accessible
mobility

Smartmobility

Safetransportation

Making smooth andseamlessmobility available.

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

Utilizing unique
technologies to enhancesafe mobility.

Case

p.22

2

Contributing to
Next-Generation
Public Transportation

Case

p.24

3

Supporting Education in
Our Communities
Contributing toa safer society

Accessible andinclusive education

Promoting healthiercommunities

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

Expanding education andtraining opportunities inorder to develop job andlife skills.

Promoting access to theresources people need tolead healthier lives.

Case

p.26

4

Realizing Societies Where
Everyone is Able to Live Lifeto the Fullest

Looking Ahead tothe World in 2050

p.28

In harmony
with nature

Value natural
resources

Reduce CO2
emissions

In harmony with nature

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

To continually improve natural
resource conservation
through operational
improvements and productdesign.

To continually reduce
emissions of Greenhouse
Gases, including CO2,from
our products’ complete
lifecycle.

Reduce CO2 emissions− 19 −

Value natural resources

Sustainability Report 2017-2018

Case

1

Utilizing Digital Tools to
Create Common Value With
Customers and Society

Smartmobility

Value natural
resources

Global Development of Digital Solutions
The Bridgestone ApproachSocial Issues
Social issues linked to mobility include
trafﬁc accidents, trafﬁc congestion
and regional disparities caused byinsufﬁcient access to transportation
among others.
These issues continue to deepen
amid concerns over difﬁculties incoping with conventional mobility
given the projected progression of theaging of society and population
growth. In the transportation andmining industries, there are issues
surrounding cost and work
efﬁciencies associated with theinspection, management andmaintenance of tires.

The Bridgestone Group contributes to safe customer
operations and the minimization of costs related to tires
through solution businesses that proactively utilize
Information and Communication Technology (ICT) andother state-of-the-art technologies.
In addition, the Group will support customers andnext-generation mobility by combining big data acquired
and accumulated through the use of digital tools and its
unique technologies to optimize the quality andeffectiveness of its products.

Fleet solutions
Mining solutions

Contribution
to Sustainable
Development
Goals

8.2
Achieve higher levels of economic productivity
through diversiﬁcation, technological upgrading
and innovation, including through a focus on
high-value added and labour-intensive sectors

11.2
By 2030, provide access to safe, affordable,
accessible and sustainable transport systems for all,improving road safety, notably by expanding public
transport, with special attention to the needs ofthose in vulnerable situations, women, children,
persons with disabilities and older persons

Improving the
efﬁciency andproductivity oftires forconstruction andmining vehicles
Tire and wheel management software for construction andmining vehicles. Contributes to increased efﬁciencies related totire maintenance, higher safety and lower costs through links to
Bridgestone B-TAG (Monitoring tool of tire air pressure andtemperature).

The Bridgestone Group− 20 −

We will move forward
focused on new value possibilities led by digitization
Bridgestone is focusing efforts on solutions businesses using digitization. Moreover, the mostimportant consideration is the pursuit of added value that only a tire manufacturer candeliver. Advances in hardware technologies are also important, yet we are also explorting
the use of data to meet customer needs and contribute to the resolution of social issues. As
digitization expands throughout the industry, we believe it is important to be able tocontinue to be Dan-Totsu.
It is important to be unconstrained by conventional systems and continuously strive toaddress various needs and social issues. By constantly moving forward, we will strive tocreate new value.

Digital platform managing
information related tocustomer and tires

Yukio Saegusa
Executive Ofﬁcer and CDO
In charge of theDigital Solutions Center
Bridgestone Corporation

Remote monitoring oftire conditions in real time
The Group will contribute to safe operationand more efﬁcient tire maintenanceusing sensors to measure truck
and bus tire air pressure andtemperatures as well as
real-time remote monitoring
through a network.

Using tablets and other terminals to accessand manage basic information
related to customer tire usage
conditions and maintenancestatus on worksites, it ispossible to visualize customer
and tire-related information.

Digital tools
creating
new value

The Group will
analyze information
after operation to
propose optimal
tire usage

Visualization andrationalization of
the retread process
A management tool for
visualizing and rationalizing theretread process byascertaining and analyzing retread
process information in real time.
The Group will contribute toincreased productivity and productquality by managing retread
construction, quality, inventory andother information.

By checking and analyzing
customer maintenance and tireconditions with proprietary
monitoring technologies, theGroup can recommend the mostappropriate tires and usage
methods to customers with ahigher degree of precision.

Creating new value through solutions
using digital tools
The Group not only creates customer value by resolving problems faced bycustomers, such as minimizing costs related to safe operation and tires, italso creates social value by reducing environmental impacts through the useof retread tires. Through solutions using digital tools, it is engaged in theevolution of mobility supporting safer and more comfortable movement.

− 21 −

Sustainability Report 2017-2018

Case

2

Contributing to Next-Generation
Public Transportation
Development of Tires andCurbs which Contribute to
Barrier-Free Bus Transport
Social Issues
The importance of public transportation will continue toincrease, especially amid urbanization, aging societies,
and the growing seriousness of environmental issues.
For bus transportation modes such as ﬁxed-route buses
and Bus Rapid Transit (BRT)*1, barrier-free boarding anddeparture is an issue.
There is a demand for proper contact with the curb to
minimize gaps between bus stops and buses as far as
possible so that the elderly, those in wheelchairs, riders
with baby strollers and all other passengers are able toget on and off the bus smoothly with peace of mind. At
the same time, public transportation must also run ontime and operate economically.
*1 BRT is an express bus rapid transit system that utilizes articulated buses andspecial trafﬁc lanes to provide 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.

Accessible
mobility

The Bridgestone Approach
The Bridgestone Group is engaged in research anddevelopment activities aimed at improving a bus’s proximity
to the curb to minimize as far as possible the gaps between
bus stops and buses. This is achieved by having the tires
come in contact with the curb when passengers are getting
on and off the bus. The Group developed special barrier-free
concept tires and next-generation curbstones to smoothlyand stably bring buses to the curb. It is promoting studies
aimed at realizing barrier-free riding for customers with agoal of commercializing this system by 2020.

Japan Transportation
Planning
Association

Joint
development

Yokohama
National
University

Bridgestone

Contribution
to Sustainable
Development
Goals

9.1
Develop quality, reliable, sustainable and resilient infrastructure,including regional and transborder infrastructure, to support
economic development and human well-being, with a focus onaffordable and equitable access for all

11.2
By 2030, provide access to safe, affordable, accessible andsustainable transport systems for all, improving road safety,
notably by expanding public transport, with special attention to
the needs of those in vulnerable situations, women, children,
persons with disabilities and older persons

How will transportation systems support cities of the future?
It is a very meaningful endeavor to provide answers to the question.
Improving how ﬁxed-route buses come in contact with the curb at bus stops does not simply improve
the way people who use wheelchairs get on and off the bus; it is a technology that provides all bus riders
with an easier way to get on and off the bus. Being able to get on and off the bus smoothly will shorten
the time buses stop at bus stops and contribute to increasing the speed at which buses travel, resulting
in a shorter overall time required for bus trips. For buses to smoothly arrive at and depart from bus
stops, we must measure the effects of combining ingenious curbstone designs, tire designs and roadsurfaces. With members of the Bridgestone research team who possess a solid track record of research
related to bus tire construction and those of us in the research group studying urban transportation
planning, the ability to tackle this subject is a very meaningful endeavor that will provide answers toquestions about how transportation systems will support cities of the future. I would like to express my
deep gratitude to everyone involved at Bridgestone for giving us this opportunity.

The Bridgestone Group− 22 −

Dr. FumihikoNakamura
Transportation and Urban
Engineering Research Group
Yokohama National UniversitySafetransportation

Contributing toa safer society

Sloped roadshoulderCurb shaped to
avoid vehicle contact

A road shoulder sloped at theappropriate angle enables smoothand stable contact, while a rounded curbstone base realizes
reduced tire abrasion. The curb is shaped so that there is nocontact with the vehicle, while the difference in step levels has
been lowered from the conventional 58 mm to 25 mm.
This further contributes to reducing burdens on passengers withwheelchairs and baby strollers when getting on and off the bus.

Roundedcurb base
Step level
difference of

33mm

Contributing to
the creation ofa barrier-free society

Next-generation
curb-hugging curbstones

The combination of these new curbstones
and concept tires is expected to
substantially improve how buses come incontact with the curb. This will not only
make getting on and off the bus easier for
all passengers, but will also reduce theburden on drivers and contribute tooperating buses on time.

solution

Designated barrier-free

concept tyre

As a countermeasure against abrasions on the side of the tire that hasrepeated contact with the curbstone, the Group devised a technique tochange rubber on side only through the application of its retread technology.
The new concept tire combines wear-resistance performance (so it does not
scrape easily) and low-friction performance (to make the tire slippery) togreatly reduce the amount of abrasion when the tires come in contact withthe curbstone, giving it a smooth and stable contact. This also contributes toconserving resources as only one part of the tire needs to be replaced whenworn. Getting on and off the bus will become easier for people who have
difﬁculty taking public transportation as well as for the average user, making
it an even more convenient way to move people and goods.

Scheduled speeds of metropolitan buses（km/h）

17.0
16.0

Related Data

Uses rubberthat is difﬁcult
to damageBus Scheduled Speed*2■ Tokyo■ Osaka■ Nagoya

15.0
14.0
13.0
12.0
11.0
0
1960 1965 1970 1975 1980 1985 1990 1993 1994 1995 1996 1997 1998 1999 2000 2001 (Year)

The average speed of travel by buses on public roads in the 23 ward area of Tokyo is 16.4 km.
(1999 Road Trafﬁc Census, Ministry of Land, Infrastructure and Transport)− 23 −

One method of shortening the length of timea bus is stopped at the bus stop is to increase
the scheduled speed of the bus.
Bridgestone initiatives contribute toincreasing bus scheduled speeds by reducing
the length of time a bus is stopped at the bus
stop by shortening the time required forpeople to get on and off the bus.
*2 Bus scheduled speed: The actual speed of the bus, upon which
bus timetables are based.

Sustainability Report 2017-2018

Case

3

Supporting Education in
Our Communities

Accessible andinclusive education

Supporting Improved Skills andKnowledge by Providing Education
and Training Opportunities
Trained people
since 2003

more than

8,000

peopleEducation and Training Facility for Employees and Local Stakeholders

Bridgestone Corporate University
Training Center (Argentine)
Established in 2003, Bridgestone
Corporate University (BCU) provides
education and training opportunities to
employees, suppliers, local citizens andother stakeholders. Center was openedin 2015 to foster training andeducation. Since opening, 508 people
have graduated from BCU and morethan 8,000 stakeholders have received
training.

SocialThe Bridgestone Group conducts business
140,000 people and interacts with diverse
the world.
These local communities face a variety
income disparity and poverty. Education isof life for local communities and employees,

The Bridgestone
Approach

Impacted village residents in India

4,500

peopleProviding school facilities to children withlimited educational opportunities

Educational support program (India)
In India, many people living in rural areas are deprived of basic
educational infrastructure due to economic reasons. Bridgestone
provided school facilities and educational materials to children withlimited educational opportunities living near the Chakan plant at our
afﬁliate company in India, Bridgestone India Private Limited (BSID). By
supporting educational opportunities for children, we help foster
educational opportunities that can break the chain of poverty.

The Bridgestone Group− 24 −

Improving local
community lifestyles
in regions where
we conduct business1.1
By 2030, eradicate extreme poverty for all people
everywhere, currently measured as people livingon less than $1.25 a day

Contribution
to Sustainable
Development
Goals

4.4
By 2030, substantially increase the number ofyouth and adults who have relevant skills,
including technical and vocational skills, foremployment, decent jobs and entrepreneurship

8.6
By 2020, substantially reduce the proportion ofyouth not in employment, education or training

Number of young
people trained

Issuesin more than 150 countries, employs overcultures and local communities throughoutof issues unique to their region, including
an important theme in improving the quality
leading to the resolution of these issues.

The Bridgestone Group promotes activities
utilizing its subject matter expertise andknow-how to expand education andtraining opportunities for people inregions where we conduct business.
Through electrical engineering,mechanical engineering, and othereducation and training opportunities, we
support next-generation learning in local
communities while securing talented
human resources for the Company.

60

students

Contributing to talented human resource development andreducing unemployment rates in local communities

Builders’ Academy (France)
We operate the Builders’ Academy
educational training program for
unemployed people at a production
plant in the city of Béthune locatedin northern France.
Local plant employees becomecoaches, teaching students
manufacturing techniques.
Students who complete theprogram are awarded a certiﬁcate
from the French government. Through these activities, we engage inthe development of human resources with specialized knowledge andskills while securing human resources for the Company. We also
partner with government agencies and local NGOs to contribute tolowering unemployment rates, which is becoming a serious social issue.

Number of activities
conducted up to date

24

times

Great East Japan Earthquake recovery support efforts

Wings for Children’s Dream (Japan)

The provision of learning leads toimproving the workstyles andlifestyles of Bridgestone Group
employees, as well as the people living
in regions where our businesses arelocated. These activities are expected
to contribute not only to the creationof a better society, but also theacquisition and development of
talented local human resources.

This project began in 2011, led mainly by
the Ochanomizu Academic Association
NPO with the aim of providing long-term
support to children who lost their parents
or guardians in the Great East Japan
Earthquake. Volunteers, mostly students,
meet regularly with children who lost theirparents or guardians, spending quality
time together and building important
relationships in these children’s lives. In addition to ﬁnancing,
Bridgestone offers its recreational facilities as a place for project
activities (summer and winter camps).

− 25 −

Sustainability Report 2017-2018

Case

4

Realizing Societies Where
Everyone is Able to Live Lifeto the Fullest

Promoting healthiercommunities

Accessible
mobility

Developing Technologies andProducts That Support Lifelong Vitality
Contribution
to Sustainable
Development
Goals

Social Issues

Goal 3
Ensure healthy lives and promote well-being
for all at all ages

Around the world there are many
people who are forced to signiﬁcantly
restrict their physical activities due todisabilities as well as deteriorated
physical function caused by aging. In
some situations, activity restricttions
can cause movement itself to be
difﬁcult. The Group recognizes that
ensuring people are not isolated fromsociety and able to live an active life
are important goals.

8.5
By 2030, achieve full and productive employment
and decent work for all women and men,
including for young people and persons withdisabilities, and equal pay for work of equal value

10.2
By 2030, empower and promote the social,economic and political inclusion of all, irrespectiveof age, sex, disability, race, ethnicity, origin,religion or economic or other status

Supporting Para-Athletes
Voice

I was impressed by thefeel of the grip andamazed to be able torace with peace of mind.
Through activities including the research anddevelopment of sports prosthesis rubber solesthat facilitate safe running on a variety of roadsurfaces and rubber gloves for wheelchaircompetitions that efﬁciently drive the wheelsof the wheelchair, Bridgestone also enables
people with disabilities to actively participate
as athletes. The Bridgestone Group also
supports para-athletes by providing them with
employment opportunities.

The Bridgestone Group

Yukako Hata
Para-triathlete− 26 −I am very thankful for the support
from Bridgestone’s rubber andbicycle-related professional
perspective. After receiving the best
support possible in the race, they
made adjustments and listened to
my requests—this was very helpful.
At the Tokyo 2020 Para-Olympics,
I want to achieve favorable resultswith Team Bridgestone.

Employee HealthEnhancement and Social
Contribution Activities

Program Participation Using Smartphones
Calculates the total number of kilometers traveled(walking, running, climbing stairs, etc.) by each employee

In January 2018, a program was launched at Bridgestone
Europe, Middle East and Africa (BSEMEA) as means of promoting
employee health and social contribution activities by linking
the distance employees walked to donations to activities
supporting the prevention of cancer. In 2018, this program will
be customized and conducted in Bridgestone China & Asia
Paciﬁc (BSCAP) and Bridgestone Group in Japan supporting
donations in local communities based on regional needs.

Total number of kilometers is linked to
BSEMEA donation activities.

Realizing an“Active and HealthyLifestyle”
for everyone

The Bridgestone Approach
The Bridgestone Group promotes researchenabling anyone to engage in their daily life andsports without impediment. We do this byleveraging technology and knowledge we’ve
gathered related to tires, automobiles andsporting goods as well as by pertaining tosports-related business. For example, we areengaged in the development of various sporting
goods supporting para-athletes, including rubber
artiﬁcial muscles, activities leading to support for
the expansion of swimming schools, employee
health and cancer prevention activities

These initiatives contribute to enabling
everyone to live a full and active life.
This is linked to improved healththroughout all of society and is
expected to lead to the invigorationof local communities.

Supporting Health in Local
Communities Through Sports
Since its establishment in 1992 in Japan, the Bridgestone Sports
Arena has aimed to support the healthy minds and bodies of local
residents and the healthy growth of local
children, as well as helping design comfortable
lifestyles for local communities. In recent years,
it has also conducted wellness programs for theelderly and engaged in adult onset disease
prevention.

Development ofa Walking Training Machine

In collaboration with Professor Kenji Kawashima of the Institute of
Biomaterials and Bioengineering at the Tokyo Medical and Dental
University, the Group launched the development of a walking training
device that contributes to the promotion of health among senior citizens.
This rubber artiﬁcial muscle, which is
attached to the user’s body and assists
with walking movement, helps support
weight and provides load, is an applicationof rubber and reinforced ﬁber
technologies accumulated from thedevelopment of tires and hoses up to now.
In 2018, the Group plans to launch testingfor practical application− 27 −

Sustainability Report 2017-2018

Looking Ahead to the Worldin 2050

Social Issues

Environment

The total number of automobiles worldwide is expected toincrease with the global population as well as economic
development in emerging nations. As a result, resource
consumption is expected to increase and the global
environmental footprint will become more impactful. There iseven a possibility of exceeding the earth’s capacity, throughclimate change, resource depletion and biodiversity loss.

Beginningof the21st century

The Bridgestone Approach

Population: 7 billion*1(2011)
As a global company, the BridgestoneGroup is aware that it shares
responsibilities for meeting the various
needs of the world and assuring a stablesupply of high-quality products. While
fulﬁlling these responsibilities, it aims tocontribute to building a sustainable society
by balancing its operations with the earth’s
capacity. Based on this philosophy, it has
prepared a long-term environmental vision
to carry out its activities.

Total number of automobiles:
900 million*2(2010)
CO2 emissions:
29 billion tonnes*3(2005)
Resource consumption:
49 billion tonnes*4 (2000)

Bridgestone GroupThe world’s
largestOperations inmore thantire and rubbercompany

countries

More than

142,000
employees

The Bridgestone Group’s
Environmental Mission Statement
The Environmental Mission Statement of
the Bridgestone Group was created sothat all employees can practiceenvironmental activities with a common
focus regardless of background or daily
work activities. Based on the unchanging
environmental philosophy of the Group“To help ensure a healthy environment
for current and future generations,” asexpressed in the Environmental Mission
Statement, the Group declares its
intention of realizing a sustainable
society and working together withstakeholders in good faith.

150

More than

3.6 trillion yen
sales

Mission of Bridgestone Group

Serving Society with Superior Quality*1 World Population Prospects: The 2012 Revision (United Nations, 2013)*2 Projection of World Energy and Transport Demands Mainly in the Automobile Sector (The Institute of Energy Economics, Japan, 2012)*3 Based on the scenarios of RCP8.5 of the CLIMATE CHANGE 2013 – The Physical Science Basis – Working Group 1 Contribution to the Fifth
Assessment Report of the Intergovernmental Panel on Climate Change (IPCC (Working Group 1), 2013)*4 Decoupling Natural Resource Use and Environmental Impacts from Economic Growth (United Nations Environment Programme, 2011)

The Bridgestone Group− 28 −

The worldin 2050
Total number of
automobiles:

2.4

billion*2

Population:

9.6

billion*1

Resource consumption:

Population
increase,
economicdevelopment

141

CO2
CO2

billion tonnes*4

CO2

CO2 emissions:75

The importance of
decoupling inworking toward building asustainable society

billion tonnes*3

In the case of
no action

Exceeds the earth’s
capacity

In order to work toward sustainability, society
should not simply accept that increased
resource consumption and environmental
footprint correlate directly with population
increase and economic development, butinstead work to separate them. The UNEP
refers to this separation
as “decoupling.”

Increase of
consumption andenvironmental
footprint

2050
Striving to create abalance between
operations
and the environment
through technology
and businessmodel innovations

Sustainable
society
Reduction of resource
consumption andenvironmental footprint

Long-term
environmental
vision(for 2050 and beyond)

In harmony with nature

Value natural resources

In balance withnature*5

Towards 100%
sustainable
materials*6(Contribution > Footprint)

Reduce CO2 emissions

Contribute to
globally
agreed target*7(Over 50% reduction of
CO2 emissions)*5 “In balance with nature” is our commitment to contribute to biodiversity through habitat enhancement, and through environmental education and research.
*6 The Bridgestone Group deﬁnes sustainable materials as materials “1) that come from resources with a guaranteed continual supply, 2) that can be used as part ofour business over the long term and 3) that have a low environmental and social impact over their lifecycle from procurement to disposal.”*7 At the G8 Hokkaido Toyako Summit (held in July 2008), G8 leaders agreed on a reduction of at least 50 percent in greenhouse gas emissions worldwide by 2050. The same
year, at the Major Economies Meeting on Energy Security and Climate Change, developed countries as well as certain emerging nations, such as China, India, etc., adopted
this target as a shared global objective.

− 29 −

Sustainability Report 2017-2018

Applicable SDG Targets

In harmony withnatureLong-Term
Vision(For 2050 and beyond)In balance with nature(Contribution > Footprint)
Water
resource
preservation &restoration

Activity
ConceptCO2
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 the long-term vision
formulated at the 10th meeting of the Conference of the Parties (COP 10) held in 2010. To accomplish this, theGroup will maintain a constant understanding of the relationship between its business and biodiversity, which
will deﬁne the priority issues that it must address. “In balance with nature,” the Group’s long-term
environmental vision for this goal, is its commitment to contribute to biodiversity through habitat enhancement,
environmental education and research. Its business operations will take into account the impact on theecosystem as a whole. The Bridgestone Group is conducting activities targeting “in balance with nature”
throughout all business areas.

Relationship Between the Bridgestone Group’s Operations and Biodiversity
Since 2013, the Bridgestone Group has conducted a materiality analysis on the footprint of the Group’s operations andcontributions to biodiversity. This analysis is based on the interrelationship represented in the Business & Biodiversity
Interrelationship Map®, which is used to prioritize issues. The Group will improve its activities by taking key actions inrelation to these issues in the future while reviewing the priority issues to meet the changes in social needs.
Meanwhile, quantiﬁcation methodology for biodiversity has been developed by various organizations, including the
Natural Capital Protocol. Paying attention to these international trends, the Bridgestone Group has promoted thequalitative and quantitative understanding of the relationships between its business operations and biodiversity.
Priority Issues and Key Actions

Minimizing footprint
Reduce impact of land utilization

Preservation and restoration of habitat
areas for native plants and animals

Reduce impact of water intake

Improvement of natural rubber farm
productivity

Reduce air and water emissions

Water resource preservation or
restoration

Reduce CO2 emissions fromall lifecycle stages*1

Reduction of CO2 emissions(customer use)

Reduce waste production

The Bridgestone Group

Enhancing contribution*1 lifecycle stages from procurement to production, distribution and productdisposal.

− 30 −

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 an
integral production requirement that cannot be separated fromcontinuation of business for the Group. The Group set a target of
reducing water intake at 35 percent per unit*2 by 2020 throughout
the Group, based on 2005 levels. In 2017, reductions reached 34
percent, including a signiﬁcant improvement over the previous year.
The Group is reusing/recycling water at many of its
manufacturing facilities, including operations in areas where there
are serious concerns regarding water shortage, such as China and
Mexico. It is also using water resources more efﬁciently byenhancing the production process and using rainwater.
In addition to implementing a risk assessment for water quality
and volume, the Group takes efﬁcient use of water resources andwastewater into account when building new tire facilities. It uses
the WBCSD Global Water Tool*3 and WRI Aqueduct*4 to assesswater risk at existing facilities and is studying improvement
opportunities for each location.

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

Base
28%
28%
34%
year reduction reduction reduction

90

35%

80

reduction

70

Target

60
50
0

2005

2015

2016

2017

2020 (Year)*2 Bridgestone manages water intake by unit of production volume andnet sales for each business. A weighted average efﬁciency of the
reduction rate is used as an index.
*3 Water risk assessment tool developed by WBCSD*4 Water risk assessment tool developed by World Resources Institute(WRI)

Third-party Assurance of Environment Data and Social Data
https://www.bridgestone.com/responsibilities/esgdata/pdf/third-party_assurance.pdf

Enhancing Contribution
Establishment of a Simple Disease Diagnosis Technology
for the Para Rubber Tree
Increasing production on limited land to minimize deforestation caused by plantation expansions is becoming an issue
amid projections for expanding tire demand and increased natural rubber consumption. In particular, diseases are oneof the major factors causing declines in productivity.
Bridgestone established a groundbreaking simple disease diagnosis technology for easily, quickly and accurately
diagnosing the white root disease (WRD)*5 that damages Para rubber trees, which will play a major role in natural
rubber resources in the future. This technology was announced in 2015. Now, Bridgestone has established adiagnostic technology that applies a biotechnology known as the LAMP method*6. Using a reagent kit, thisrevolutionary advanced technology enables simple visual conﬁrmation of the presence or absence of disease-causing
bacteria, even in the ﬁeld. This technology enables the early detection of WRD, an infection that spreads by pathogens
in the soil, to help prevent the spread of infection from sick to healthy trees. It is also expected to help prevent
damage and make maintenance easier. Going forward, the company will continue collaborating with Indonesia anduniversities in Japan to promote further enhanced development and contribute to the protection of Para rubber trees
and the stable provision of natural rubber through the implementation of this technology.
*5 White root disease is caused by a parasite fungus (Rigidoporus microporus), a type of ﬁlamentous fungi. It infects the roots, causes the tissue to decay and kills the tree. It isdifﬁcult to detect the disease in its early stages. At present, there are no fundamental countermeasures, so when the disease occurs, the infected sections of the tree areremoved and the tree is treated with a chemical reagent.
*6 Loop-mediated Isothermal Ampliﬁcation (LAMP) is a nucleic acid ampliﬁcation method developed by Eiken Chemical Co., Ltd. It ampliﬁes and detects DNA sequences unique topathogenic bacteria in soil.

Wildlife Habitat Conservation andEnvironmental Education Certiﬁcation
Bridgestone Americas, Inc. (BSAM) acquired wildlife habitat conservation andenvironmental education certiﬁcation from the Wildlife Habitat Council (WHC)
for its 11 Wildlife Habitat Sites in the United States and Mexico. BSAM
conserves the natural ﬂora and fauna at each of these sites and provides
environmental education opportunities in line with local conditions.
In November 2017, senior management representing BSAM participated in
Bridgestone Firestone Centennial Wilderness
a panel discussion at the Conservation Conference hosted by the WHC in
Baltimore, Maryland, where corporate social responsibilities related to the conservation of wildlife habitats were discussed.

− 31 −

Sustainability Report 2017-2018

Applicable SDG Targets

Value natural
resources

Long-Term
VisionToward 100% sustainable materials*1(For 2050 and beyond)

Activity
Concept

The increasing number of automobiles will likely boost tire demand in the future.
The goal of the Bridgestone Group is to implement business operations in balance withthe planet’s ecological capacity. The Bridgestone Group has set the goal of using “100percent sustainable materials” in its products as the long-term vision for 2050 andbeyond. To achieve this goal, it is committed to taking the following three actions:(1) reduce raw material consumption (enhance resource productivity),(2) recycle resources and use them efﬁciently, and(3) expand and diversify renewable resources(i.e., technology aimed at zero use of non-renewable materials).
*1 The Bridgestone Group deﬁnes sustainable materials as materials “1) that come from resources with a guaranteed continualsupply, 2) that can be used as part of our business over the long term and 3) that have a low environmental and social impact
over their lifecycle from procurement to disposal.”

Major Technologies and Products Targeting
100 Percent Sustainable Materials
High Strength Rubber, Our First Polymer to Be Successfully Developed

action❶reduce raw material
consumption

Butadiene, isoprene,
and other conjugated diened(Rubber components)(enhance resource
productivity)

Copolymerization

Bridgestone’s
proprietary novel
Gd catalyst
Ethylene and other oleﬁns(Resin components)

Hybrid resin-rubber materialHigh Strength Rubber

Tire Weight Reduction Research
Creation of Next-Generation Material that Combines the Pliability of Rubber with
the Toughness of Resin
The Bridgestone Corporation has successfully developed the world’s ﬁrst*2 polymer to bond rubber and resins at the molecular level in
2018. This new polymer boasts unprecedented durability with crack resistance that is over ﬁve times higher,*3 abrasion resistancethat is more than 2.5 times higher,*4 and tensile strength that is more than 1.5 times higher*5 than natural rubber, which itself has
higher destruction resistance than common synthetic rubber.
The newly developed polymer, called High Strength Rubber (HSR), is a hybrid material to bond synthetic rubber components suchas butadiene and isoprene, with resin components such as ethylene,*6 at the molecular level by using Bridgestone’s proprietary novel
gadolinium (Gd) catalyst*7 (via copolymerization*8). HSR boasts levels of durability and abrasion resistance that eclipse those of natural
rubber. For this reason, HSR is a promising next-generation tire material with the potential to create tires that achieve the required
levels of performance while using less materials. Bridgestone also intends to actively examine the possibility of utilizing HSR in
products other than tires.
*2 Source: Bridgestone Corporation *3 The ﬁgure is based on tests using JIS K 6270 (a strain-controlled method for testing the tensile fatigue properties of vulcanized rubber andthermoplastic rubber). *4 The ﬁgure is based on tests using JIS K 6264-2 (a revised Lambourn abrasion test for determining the abrasion resistance of vulcanized rubber andthermoplastic rubber). *5 The ﬁgure is based on tests using JIS K 6251 (a test for determining the tensile properties of vulcanized rubber and thermoplastic rubber). *6 Ethylene is abasic material used in creating plastic, synthetic ﬁbers, and other petrochemicals. Polyethylene, which is created through polymerization of ethylene, is the most commonly usedsynthetic resin *7 A gadolinium catalyst is a type of polymerization catalyst developed by Bridgestone that makes it possible to synthesize high-performance rubber.
*8 Copolymerization is a process of reacting two or more monomer molecules together in a chemical reaction to form polymer chains.

The Bridgestone Group− 32 −

Resource use

Resource
consumption will be
increased due toincreasing demands

action 1
reduce raw material
consumptionA(enhance resource productivity)

half-weight technology
long life technology(Business as usual)action 2
recycle resources & use
effectively

B
Line ofecologicalcapacity

A

A

C

B

B

C
Current status

BAU

action❷recycle resources&
use effectively

Retread tires
Retread tires reuse tire casings by
replacing worn tire tread rubber(areas that come into contact withthe road surface). Compared to newtires, less than one-third the amountof raw material is used, saving
resources as well as enabling thereuse of components other thantread rubber (casing), signiﬁcantly
contributing to the reduction of
discarded used tires.

action 3
expand and diversify
renewable resources
improvements in rubber productivity
diversiﬁcation of natural resources,
such as bio-materials

A Recycled materials

2050 and beyond(Business as usual)

retread technology and services
non-pneumatic tire
recycled rubber

100% Sustainable
material

B New input of renewable materials
C Non-renewable materials

Research and Developmentof Guayule, a New Natural
Rubber Resource
Bridgestone is promoting various research projects utilizing
partnerships aimed at practical applications for guayule, whichshows promise as a new supply source for natural rubber, one of themain raw materials in tires.
In December 2017, Bridgestone Americas, Inc. (BSAM)
collaborated with Versalis S.p.A. of Italy, making full use of the latest
genetic technologies with the aim of developing highly productive
varieties of guayule. BSAM is also engaged in improving guayule
varieties utilizing technologies from NRgene Ltd., a genome big
data solutions company.
In recognition of its many years of research into these andother areas, in February 2018, BSAM was selected by the National
Institute of Food and Agriculture (NIFA) of the United States
Department of Agriculture (USDA) to receive support for the
research and development of U.S. natural rubber resources derived
from guayule.
Aiming for practical applications in the 2020s. it will continue
to strengthen various factors going forward, including improving
guayule productivity through sustainable methods, establishingproduction processes and improving logistics.

action68%*

9reductionin amount of
oil used
New tires

Retread tires*9 Japan Retreaders’ Association

GuayulerubberUnlike Para rubber trees, which are the main
source of natural rubber, guayule is a shrubthat can be cultivated on land native to thearid region spanning the southwestern
United States to northern Mexico.

− 33 −❸

expand anddiversify
renewable
resources

Sustainability Report 2017-2018

Applicable SDG Targets

Reduce CO2
emissionsLong-Term
Vision(For 2050 and beyond)Mid-term
Environmental
Targets(by 2020)

Activity
Concept

Contribute to Globally-Agreed Target(more than 50 percent reduction of CO2 emissions)Contribute to CO2 reduction at usage stage that outweighs morethan all other emissions in the product lifecycle by 2020
Reduce CO2 emissions per sales from operations and products’ after-use*1
percentby

35

25

Reduce rolling resistance of tires bypercent and thereby achieving CO2
reduction during use that exceeds all other emissions in the product’s lifecycle
Greenhouse Gas Emissions by Tire Lifecycle Stage (Converted to CO2 Base)*2
Raw material
procurement

Manufacturing

Distribution

Use (Driving)

After-use

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 other internationally recognized agencies, the Group has established agoal to reduce CO2 emissions in its business operations.
Its 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 to automobile 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 its products.
To reduce the volume of CO2 emissions over the entire lifecycle of a tire, the Bridgestone Group has set two CO2
reduction-related targets so that by 2020 the contribution from avoided emissions when the customer uses the tire exceeds
the emissions from raw material procurement, manufacturing distribution and a tire’s after-use.
Considering the value when CO2 emissions from operations and products’ after-use are offset by contribution of CO2
reduction at usage stage*4, the reduction in 2017 was
Difference in CO2 Emissions from Operations and Products’
86 percent (compared to 2005). The Group is
After-use and Contribution to CO2 reduction at the Usage Stage
continuing activities with the dual approach aimed at(Thousandtonnes) Baseyear
achieving its goal of reducing CO2 emissions
15,000
generated by the customer’s use of a tire enough tooutweigh all other emissions produced during raw
materials procurement, manufacturing and the
10,000carbonafterlife of the product by 2020.
neutralAlong with striving to mitigate climate change by
reducing the amount of CO2 emissions, the company
recognizes the risk of climate change to Group
activities and is implementing adaptation measures
such as conducting research on sourcing natural
rubber from areas other than tropical regions.

5,000

Targeto below0

20052015 2016 2017

*1 Lifecycle stages other than use include raw material procurement, manufacturing, distribution, and after use.
*2 Greenhouse gas emissions throughout lifecycle of one fuel-efﬁcient passenger car tire (195/65R15): 243.9kgCO2e
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*4 Calculated based on “Tyre LCCO2 Calculation Guidelines Ver. 2.0”(The Japan Automobile Tyre Manufacturers Association, Inc., April 2012)

The Bridgestone Group− 34 −

2020 (Year)

Main
Achievements
in 201735 percent reduction in CO emissions per net sales
2

from operations and products’ after-use (compared to 2005)

19 percent reduction in tire-rolling resistance(compared to 2005)

The Bridgestone Group has set a target of a 35 percent reduction in CO2 emissions tonnes per net sales from operations andproducts’ after-use by 2020. In 2017, reduction per net sales was 35 percent, a substantial improvement over the previous
year (compared to 2005). It will continue to promote further reductions in CO2 emissions throughout the entire supply chain,
aiming to meet the 2020 target.
For the other target of a 25 percent reduction in tire-rolling resistance by 2020 (compared to 2005), the Group achieved
a 19 percent reduction in 2017. This CO2 reduction contribution in 2017 is the equivalent of approximately 11.7 million
tonnes*5. Improving rolling resistance while maintaining safety is a difﬁcult task requiring innovative technologies.
Bridgestone has developed “NanoPro-Tech”*6 technology, and promotes sales of fuel-efﬁcient tires utilizing this technology
around the world, helping to reduce the volume of CO2 emitted at the usage stage. It is also considering the establishment of
new reduction targets after 2020.
Bridgestone’s CO2 emissions are veriﬁed by a third-party institution in an effort to ensure the transparency of information.
*5 Calculated based on “Tyre LCCO2 Calculation Guidelines Ver. 2.0” (The Japan Automobile Tyre Manufacturers Association, Inc., April 2012)*6 NanoPro-Tech is a nanotechnology to analyze and control the molecular structure of rubber at the nanometer level.

Third-party Assurance of Environment Data and Social Data
https://www.bridgestone.com/responsibilities/esgdata/pdf/third-party_assurance.pdf

CO2 Emissions Per Sales from Operations andproducts’ after-use Other Than Use*7(t/100million yen)
600

Base
year

Tire-Rolling Resistance Coefﬁcient(%)

37% 29% 35%
reduction reduction reduction

100

35%
reduction

500
400

14% 15% 19%

reduction reduction reduction

25%

90

reduction

80

300

TargetTarget

200

70

100
0

Base
year

60

2005

2015

Raw materials

2016

2017

Manufacturing

0

2020

(Year)

Distribution

After-use

2005

2015

2016

2017

2020

(Year)*7 Includes CO2 emissions reduction activities and exchange rate ﬂuctuations of sales.

The Bridgestone World Solar Challenge,
the World’s Leading Solar Car Race
The Bridgestone World Solar Challenge is the world’s leading race by solar-poweredcars. Lasting approximately ﬁve days, the race traverses some 3,000 kilometers,from Darwin in northern Australia to Adelaide in the south. Bridgestone supports
the teams from around the world that participate in this hotly contested race,
encouraging the young engineers of the future. This race has also promoted thedevelopment of environmental technologies, such as the “ECOPIA with ologic*8”
tire, which features low fuel consumption, thereby contributing to the next
generation of mobility in society.
*8 The “ologic” features a narrow tread width and large diameter, using Bridgestone’s low-fuel-consumption tire technology to achieve excellence, both in termsof low fuel consumption and safety. We supplied “ECOPIA with ologic” low-fuel-consumption tires, which employ the “ologic” concept, to 22 teams
participating in the 2017 Bridgestone World Solar Challenge for use on their solar-powered cars.

For more details of our activities in Environment, please see the website. https://www.bridgestone.com/responsibilities/environment/index.html− 35 −

Sustainability Report 2017-2018

Management Fundamentals
Deﬁnition

CommonStructure

Areas for measures essential as a responsible corporation, such ascompliance with ISO26000, and adherence to basic rules andsocial norms
To promote Group-wide sustainability activities, Bridgestone created a structure comprising a
global CSR management system, a regional CSR management system, and working groups(WGs) for each area of activity.
The global CSR management system prioritizes initiatives in areas pertaining to a variety of
global issues, formulates global sustainability strategies, conﬁrms the progress of activities ineach area of the Global EXCO*1, and conﬁrms the in-house implementation of CSR activities
conducted by the Global CSR Enhancement Committee (GCEC) & Global Quality Management
Committee (GQMC) .
*1 Global Executive Committee: The highest-level committee which is associated with Bridgestone Global Group business execution and consistsof members including member of the Board; CEO and Representative Executive Ofﬁcer; concurrently Chairman of the Board

Management Fundamentals

Compliance, Fair Competition
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.

Management Structure
Responsibility for maintaining a best in class ethics and compliance program and culture starts at the most seniorlevels of Bridgestone but ultimately belongs with each and every employee.
Bridgestone’s Group Global General Counsel and Chief Compliance Ofﬁcer (CCO) and Global Law Leadership
Team are principally responsible for oversight, evaluation and enhancement of the Bridgestone Group’s global andregional ethics and compliance programs. The Bridgestone CCO and Global Law Leadership team are supported inthese efforts by Bridgestone’s Compliance and Fair Competition Working Group (WG) and regional teams ofdedicated compliance professionals who work together to identify annual and long-term regional and global
compliance priorities and goals, conﬁrm the progress of overall compliance activities at the regional and global level
and report the results to senior management. Since its establishment, the Compliance and Fair Competition WG has
carefully evaluated the key elements and practices of highly effective corporate compliance programs and instituted
short and long-term strategies to foster a best-in-class compliance culture consistent with the Bridgestone Group’s
corporate values and principles.
Board oversight and engagement has been a hallmark of Bridgestone’s ethics and compliance program for many
years. This board-level oversight was strengthened in 2014 with the establishment of a Compliance Committee as anadvisory body to the Board of Directors, and again in 2016, when Bridgestone transitioned to a new corporate
governance structure. In 2017, the Compliance Committee held six meetings comprised of external directors whoshared feedback on Bridgestone’s ethics and compliance program based on their own experiences and expertise.

The Bridgestone Group− 36 −

Compliance,
Fair Competition

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

Safety,Industrial Hygiene

Procurement

Quality andCustomer Value

The Bridgestone CCO submits periodic reports to the Compliance Committee as well as annual reports
pertaining to global compliance activities to the Board of Directors. Regional CCO’s are responsible for providing
similar reports to their respective senior leadership teams and boards as well.
Finally, recognizing that a true culture of compliance requires active engagement by all of our teammates,
Bridgestone prioritizes a culture that provides opportunities for and encourages participation in complianceactivities by teammates in every business unit and function and at all levels of the organization.

Compliance Activities
1. Establishment of corporate standards and rules
For many years, Bridgestone Group companies have maintained comprehensive codes of conduct and other compliancepolicies. Although the themes in these policies and codes were generally consistent, there were some regional variations. To
ensure a uniﬁed consistent compliance message on compliance for all of its teammates globally, Bridgestone has developedand is introducing this year a new comprehensive global code of conduct that will apply to the entire Group. The new
Bridgestone Code of Conduct expands on Bridgestone’s Mission and core values to provide practical guidance to ourteammates at all levels as they face ethical and compliance challenges in their daily work lives. The new Bridgestone Code of
Conduct covers a broad range of ethics and compliance topics. It is supplemented by additional global and regional policies
and standards for areas that require special focus or more in-depth guidance.
For example, in order to clearly show the special emphasis placed by Bridgestone on cartel and bribery prevention,
Bridgestone Corporation established a stand-alone group-wide policy strictly prohibiting cartel and bribery conduct. Each
SBU adopted and maintains a similar code or guideline.
Bridgestone Corporation issued its Cartel Prevention Code and Bribery Prevention Code in October 2012 with approval of
the Board of Directors, which set out the basic rules of cartel and bribery prevention. Bridgestone also issued Cartel
Prevention Guidelines in December 2014 as a supplement to its Cartel Prevention Code. The Guidelines demonstrate theappropriate course of action to be taken by employees in day-to-day business situations. Bridgestone also issued its
Guidelines on Gifts and Entertainment in October 2012, and renewed the guidelines as “Bribery Prevention Guidelines” in
October 2016 under the supervision of the Board’s Compliance Committee. Globally, regional companies have adopted
related policies and controls.
Policies and guidelines are available to employees through the Company intranet.

2. Trainings
The Bridgestone Group provides its employees with a variety of compliance trainings. While relevant annual themes are
selected by legal and compliance departments for each region, cartel and bribery prevention code and guideline are common
themes globally. Live, online and workshop-style trainings are offered depending on the targeted audience within theorganization. In 2017, live training reached more teammates than ever before, and e-learning courses were expanded tomany remote operations. In addition, several Bridgestone companies celebrated “Ethics and Compliance Week” activities topromote teammate awareness of ethics and compliance through leader communications, compliance tips, surveys, contests,
quizzes, and live training sessions.

3. Monitoring
During 2017, the Bridgestone Group introduced a common screening tool and training to standardize third-party risk
management in high-risk transactions. The Bridgestone Group also continued expanding hotlines to accept reports regarding
violation of internal rules, fraud, inaccurate ﬁnancial records, embezzlement and theft throughout the company. In addition
to these longstanding whistleblowing lines, Bridgestone Corporation maintained a hotline dedicated to cartel and bribery as
part of its effort to detect any anticompetitive or unfair business conduct at an early stage. The compliance hotlines receive
anonymous reports and ensure conﬁdentiality.
Bridgestone also initiated various measures to monitor the status of its internal rules and promptly uncover potential
misconduct particularly for cartel and bribery prevention. For instance, in Japan the Cartel Prevention Guidelines requireofﬁcers and employees to record all contacts with competitors and also require them to consult with the Ofﬁce of Legal
Affairs if they have any questions or need guidance. Bridgestone’s Bribery Prevention Guidelines require employees to submit
an approval form in advance of any payment to any government ofﬁcial. Regional SBUs periodically require selected
teammates to acknowledge compliance obligations and/or disclose any potential concerns of misconduct. Furthermore,
Bridgestone’s CCO regularly interviews ofﬁcers and division heads to assess level of risks related to legal and compliance.

4. Continuous Improvement
Bridgestone seeks to continuously improve its ethics and compliance program and culture, globally and regionally. Recent
examples include: compliance and legal audits and review of all of the company’s small and remote operations, enhancement
and expansion of its annual certiﬁcations and investigation protocols, the identiﬁcation of common global and regional
metrics for measuring program effectiveness, and the development and implementation of a new global Code of Conduct.

− 37 −

Sustainability Report 2017-2018

Management Fundamentals

Business Continuity(BCP), Risk Management
MissionPrevent and mitigate operational risks
We anticipate, prevent, and mitigate risks, but when crises arise,
we protect our people, property, and proﬁts.

Management Structure
The Bridgestone Group broadly divides risks into two categories: business strategic risks, which are related to
management decision-making, and operational risks, which are related to daily operations. The former is handled
through business operations, while the latter is handled by the Chief Risk Ofﬁcer (CRO), who has overall
responsibility for managing risks and reports to the CEO.
Bridgestone promotes comprehensive activities to appropriately manage risks common to the Group, withconsideration for the scale and characteristics of each site and Group company. Through the dual promotion ofGroup global uniﬁed activities and autonomous risk management activities, Bridgestone identiﬁes, prevents andmitigates risks, and formulates Crisis Management and Business Continuity Plans to enable appropriate support forthe continuation or resumption of business.
In 2016, under GCEC, the BCP, Risk Management WG was established, comprising members from each SBU*1.
The WG manages and updates the Bridgestone Group’s Global Risk Management Policy and oversees the company’srisk management, crisis management, and business continuity systems. To this end, the WG is undertaking ﬁve key
initiatives: Reﬁne and Standardize the Annual Risk Identiﬁcation Process Across the Bridgestone Enterprise; Create a
Global Deﬁnition and Framework for Crisis Management and Business Continuity; Enhance the Risk Management
Role of Emergency Action Reports; Develop an Enterprise Travel Risk Management Program; and Formalize theProcess for Cross-SBU Support in Crisis Management. The WG’s deliberations and efforts are guided by ISO 31000,
the international standard for risk management.
*1 Strategic Business Unit

Response to New Types of Inﬂuenza and Other Severe
Infectious Diseases
Since 2013, the Bridgestone Group has formulated BCPs to address the spread of new types of inﬂuenza and othersevere infectious diseases that are potentially pandemic in scope. In 2015, our BCPs were revised to align with theWorld Health Organization’s global framework to aid in pandemic preparedness and response planning.
BCPs have effectively guided the Bridgestone Group’s response to Avian Inﬂuenza in China and ensured thewell-being of our employees and business operations there. The company received global recognition for its
successful efforts to control the spread of Ebola Hemorrhagic Fever at its Liberia-based natural rubber producing
operation. Firestone Liberia not only saved lives, supported education and response efforts in surrounding
communities, and partnered with the Government of Liberia and NGOs to detect and ﬁght the disease, but kept its
business running at the same time.

The Bridgestone Group− 38 −

Compliance,
Fair Competition

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

Safety,Industrial Hygiene

Procurement

Quality andCustomer Value

Going forward, Bridgestone will promote these initiatives throughout the entire Group to create a structure
enabling a uniﬁed response to the spread of infectious diseases in all countries.

Earthquake Countermeasures
The Bridgestone Group develops BCPs and conducts drills to prepare for major earthquakes, which pose a signiﬁcantrisk.
In Japan, the Bridgestone Group also has established a BCP in preparation for a major earthquake in the Tokyo
metropolitan area that would affect our head ofﬁce, technical centers, and many other functions. We created athree-pronged ofﬁce framework approach (consisting of Kyobashi, Kodaira, and Yokohama) for emergencies,
ensuring backup functions. Emergency countermeasure organization drills are conducted in these three districts
annually. In 2015, evacuation points placing the highest priority on the preservation of human life andevacuation procedures were put in place at domestic facilities at risk in the event of a tsunami. In addition, since
the Great Hanshin-Awaji Earthquake in 1995, the Bridgestone Group has systematically implemented
earthquake-resistance measures in buildings. This is to protect the lives of each of our employees, but we also
believe that protecting production facilities and other corporate assets from destruction is the basis of good
corporate management. In the interest of business continuity, these initiatives also go toward mitigating risk tomeet social requirements. Since the Great East Japan Earthquake in 2011, we have again looked carefully into thevulnerability to disaster of building components such as ceilings and pipes. We have put in place our own standards
in these regards and are proceeding with earthquake-prooﬁng in a well-planned manner.
In overseas SBUs, BCP and Earthquake-resistant measures in buildings and on manufacturing equipment are
deployed or being implemented based on the risks assessment.

Information Security
Personal Information Protection
The Bridgestone Group recognizes that it has been entrusted with the personal information of its customers andbusiness partners, and has an obligation to handle this information carefully under the philosophy of respecting thepersonalities of individuals. In March 2005, we formulated a basic policy for personal information protection andput into place a structure for information management based on this policy. We created a Compliance Casebook,incorporated into our e-learning program cases involving personal information protection, and conduct ongoingtrainings utilizing speciﬁc examples for all employees at Bridgestone and its group companies in Japan.

IT Security
The Bridgestone Group takes a systematic approach to IT security in order to prevent leaks of customer data andother conﬁdential information and to ensure stable business continuity. We have formulated key points andstandards for IT security as the regulations and rules regarding IT security activities and make regular revisions in
response to technological advancements and changes in IT risks. Particularly strict standards have been set for the
information systems handling personal information.
For the global group company network, Bridgestone is coordinating with the IT security teams in regions with
Bridgestone Group companies, and working to formulate a new global security framework. Bridgestone also takes
steps to continually strengthen IT security throughout the corporate group, including e-learning programs for
employees regarding email and other aspects of IT security, and regular internal audits to raise IT security awarenessamong employees. Further, to counter targeted attacks and other advanced cyber threats, Bridgestone isstrengthening its monitoring of networks and other systems and has established a structure to provide an
immediate response to any IT security incident.

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Sustainability Report 2017-2018

Management Fundamentals

Human Rights, Labor Practices
Mission

Advancing fundamental human rights andresponsible 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 for fundamental human rights.

Bridgestone Group Global Human Rights Policy

As part of our commitment to be a true global leader in all that we do, the Bridgestone Groupis committed to advancing fundamental human rights and responsible labor practices
throughout our worldwide operations. We believe this commitment is not only the rightthing to do, but also foundational to enhanced job satisfaction and pride for our employees,
which is in turn critical to sustainable success for our business. We strive to upholdfundamental human rights principles in all the ways that we interact with people asemployees, consumers, customers, suppliers, contractors, and community members wherever
we conduct business. To ensure that we are living up to our commitments, we will conduct
appropriate training on this policy and due diligence to identify and remediate any adverse
impact that any of our operations may have.
Bridgestone respects international norms for human rights, such as the fundamental principles
generally reﬂected in the United Nations Universal Declaration of Human Rights (UDHR), theUnited Nations Guiding Principles on Business and Human Rights, various International Labor
Organization (ILO) Conventions, and other globally recognized standards. These standards
help inform Bridgestone’s principles and approach on human rights issues.
Our human rights policy applies to all employees and locations in the companies of theBridgestone Group. We expect all of our employees to uphold this policy, and we expect ourvendors and suppliers to do the same.

The Bridgestone Group− 40 −

Compliance,
Fair Competition

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

Safety,Industrial Hygiene

Procurement

Quality andCustomer Value

Respect for Diversity and Inclusion
As an organization, we believe that all people have the right to participate in the labor
force to the full extent of their individual desire and capability. We further believe thatbringing together individuals who have diverse backgrounds, experiences, skills, andperspectives adds value to our business, and even more so when we all integrate into a
cohesive team. Accordingly, we value diversity and expect all employees to support an
inclusive environment founded on teamwork and respect. We are convinced that doing so
will help us to attract, develop, and retain the best talent in the market for the greater
good of our company.

Prohibition of Discrimination and Harassment
We afﬁrm the fundamental principle that everyone is entitled to fair treatment and equal
opportunity without discrimination on the basis of any characteristic such as race, ethnicity,
color, nationality, gender, sexual orientation, gender identity, age, language, religion,
creed, social status, or disability. We do not tolerate behavior that is discriminatory,
harassing, disrespectful, or otherwise degrading to individual dignity. We are committed toprotecting the rights of individuals in traditionally under-privileged groups and expanding
their employment opportunities.

Focus on Workplace Safety and Health
At Bridgestone, we live by the principle of “Safety First, Always.” Creating a safe workplace
for all is one of our core business values and is everyone’s shared responsibility. For more
information on our occupational safety and health programs, please see:https://www.bridgestone.com/responsibilities/safety_health/index.html

Commitment to Responsible Labor Practices
As a global leader, Bridgestone is committed to ensuring our compliance with all applicablelaws, regulations, and other employment standards. We believe in doing our part toabolish the unacceptable practices of child labor and forced or compulsory laborthroughout the world. We prohibit child and forced/compulsory labor in our organization,and in our supply chain. Beyond our commitment to compliance, we strive to provide
quality job opportunities for residents of our local communities, with reasonable working
hours, clean and safe working conditions, and fair, market-competitive pay and beneﬁts.

Protection of Free Speech and Association
We believe that all people have the right to have their voices heard by raising their goodfaith concerns, either openly or anonymously, without any negative consequence. To that
end, we respect the right of all employees to choose, voluntarily and free from coercion,
whether to bargain collectively and seek representation by third parties, including tradeunions, or to refrain from doing so. We also believe that employees should be fully andaccurately informed when making the important decision of whether to elect a third party
to represent them. In any event, at Bridgestone we are committed to creating a culture of
openness and employee involvement in all of the locations in which we operate.

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Sustainability Report 2017-2018

Bridgestone Group Global Human Rights Policy and Initiatives on
Human Rights Due Diligence
The Bridgestone Group is committed to ensuring proper understanding of its stance on Human Rights and due
diligence.
Starting in 2011, we translated our original Group’s Stance on Human Rights into 15 languages and distributed
it to all ofﬁces, plants, and group companies. We then provided education and training to all teammates to raiseawareness worldwide. This process concluded in 2012. Starting in 2013, we have included this topic in New Hire
training and Level-wise trainings. To further promote human rights, we have human rights consultation desks inplace at each of our ofﬁces in Japan, with which employees can consult on potential concerns relating to humanrights with keeping conﬁdentiality, while we continue to ensure compliance with the policy.
As a natural evolution, the Bridgestone Group announced its new Human Rights Policy in 2018 addressing
fundamental human right issues in in connection with the company’s social responsibility commitment “Our Way toServe”. The new Global Human Rights Policy reﬂects this commitment and deﬁnes what it means in practice in
speciﬁc areas of focus: respect for diversity and inclusion, prohibition of discrimination and harassment, focus on
workplace safety and health, commitment to responsible labor practices, and protection of free speech andassociation.
We conduct human rights due diligence within the Group. Based on our ﬁndings, we have formulated a three-yearplan to address each area of human rights, such as discrimination and harassment.

Management Structure
In addition to respecting human rights in accordance with the Group Global Human Rights Policy, the company
appointed a Chief Human Rights Ofﬁcer (CHRO) and is working to ensure the Group’s approach to this issue is wellunderstood throughout the organization. In accordance with the Global CSR management system, the Human
Rights and Labor Practices WG veriﬁes the content and progress of overall global efforts in human rights, labor
practices and diversity, and reports to the GCEC and top management in each SBU*1 and region.
*1 Strategic Business Unit

Approach to respecting diversity and related initiatives
In 2008, the Bridgestone Group established a unit responsible for overseeing the promotion of diversity in Japan andhas been applying this approach to respect for diversity throughout the Bridgestone Group since 2009.
Based on its Stance on Respect for Diversity, for each Bridgestone Group company it will establish
diversity-related programs speciﬁc to the respective countries or regions and laws.
Since 2009, Bridgestone has invited outside experts to conduct ongoing lectures related to diversity andwork-life balance. Approximately 3, 500 employees had participated in these lectures until 2017.
In Japan, support for childcare included information exchange meetings led by employees who had experience
returning to work after childcare leave or taking time off. Also, interviews before and after taking time off wereconducted between employees on childcare leave, supervisors and HR personnel, and opportunities were provided
for communication among employees working while caring for children. Regarding nursing care support, in
addition to lectures by outside lecturers and awareness activities involving the publication of guidebooks,
exemptions from overtime were established for employees providing nursing care among other efforts to provide
support for employees working while providing nursing care.
Also, Bridgestone Americas, Inc. has implemented a variety of initiatives designed to create a more diverse andinclusive work environment, including maintaining afﬁrmative action programs to promote the employment
opportunities of minorities, females, individuals with disabilities, disabled veterans, and other protected veterans,
supporting employee afﬁnity groups, and conducting employee focus groups.

The Bridgestone Group− 42 −

Compliance,
Fair Competition

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

Safety,Industrial Hygiene

Procurement

Quality andCustomer Value

The Bridgestone Group’s Stance on “Respect for Diversity”
The Bridgestone Group provides a work environment in which individuals who have diverse values and personalities
can work comfortably and demonstrate their abilities. To make this possible:
We recognize and respect diversity of culture and customs in each country of the world.
We sympathize with ideas from diverse viewpoints of diverse people and create new value.
We establish a system in which employees can perform their duties with peace of mind and demonstrate
their abilities to the fullest across the various stages of their lives.
And ﬁnally, we focus all of these efforts on “improving employee satisfaction,” “activating and improving theCompany,” and “increasing stakeholders’ proﬁts.”

Initiatives for diverse workstyles
Bridgestone aims to create a workplace environment in which diverse individuals can succeed.
To support employees raising children, Bridgestone has established nursery facilities close to its ofﬁce, andconducts seminars on childcare. In Europe, it offers ﬂexible work schedules for families, and provide opportunities for
employees to maintain communication while on childcare leave. Bridgestone also promotes employment for
persons with disabilities, including establishing the special exceptional subsidiary Bridgestone Empowerment Co., Ltd.
to provide disabled persons with employment opportunities.
Bridgestone will further promote such measures with the aim of establishing an inclusive society where
employees can work with peace of mind.
Example of Initiatives in Japan

Nursery facilities
Paid maternity leave

Paid paternity leave
Family care leave

Volunteer leave

Initiatives for female employees
The Bridgestone Group, based on its Stance on Respect for Diversity, implements measures for the active
participation and advancement of women in the workplace of each SBU.
In Japan, Bridgestone undertakes a variety of initiatives to help female employees succeed. The company
provides career development training for interested female employees, offers support to help female employees
develop networks, and conduct career support training targeting gender diversity awareness for managers. The
company also has introduced a program in Japan to promote female employees in management positions with thegoal of developing female managerial candidates over the medium term. Furthermore, in 2017, it entered into acomprehensive agreement with Ochanomizu University aimed at cultivating female leaders.
Bridgestone Americas has adopted strategies to increase female representation in management, including
support for the WOMEN Unlimited programs to develop leaders by managerial level, as well as development andmentorship programs through the women’s afﬁnity group BWIN. It also maintains afﬁrmative action programs topromote employment opportunities for minorities, females, individuals with disabilities, disabled veterans, and otherprotected veterans.

External assessment
Selected as a “Nadeshiko Brand” for ﬁve consecutive years
In March 2018, Bridgestone was selected for the ﬁfth consecutive year as a“Nadeshiko Brand,” by which the Japanese Ministry of Economy, Trade andIndustry (METI) and the Tokyo Stock Exchange (TSE) jointly publicize enterprisesthat are exceptional in encouraging women’s success in the workplace.
The “Nadeshiko Brand” introduced companies aggressively promoting theutilization of women employees, including the creation of environments inwhich women are able to continue working, in each industry from among"Nadeshiko Brand" logo
approximately 3,500 companies listed on the Tokyo Stock Exchange.
Bridgestone was recognized for its efforts to increase the ratio of women among new hires and directors(including outside directors), support of women's careers and initiatives supporting a work-life balance.

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Sustainability Report 2017-2018

Continued enhancement of job satisfaction and pride
Approach to Continued Enhancement of Job Satisfaction and
Pride and Related Initiatives
The Bridgestone Group has adopted the following approach to continued enhancement of job satisfaction and pride.

Empoyees will strive to create a motivating workplace and to growthrough their work as they share the following global and Group values:

Communications:

Encourage mutual communications that build sharedunderstanding and trust

Teamwork:

Operate with a sincere respect for diversity.
promote decisive and planned actions that accommodate what is the bestfor both the team and the company

Compliance:

Encourage sincere actions that comply with both the letter and spirit of
all applicable laws, regulations and polices.

Customer
Orientation:

Consider the internal and external customer perspective, and encourage
actions that put customer satisfaction ﬁrst.

Improvement:

Respectfuly challenge the status quo, and always strive for excellence
without fear of failure.
Foster an enviroment that promotes improvement and innovation, taking
into account the importance of both the process and the results.

Personnel Training:

Provide a training system that supports proactive learning andencourages employees to develop their own abilities.

Evaluation,
Compensation:

Build a human resources system that encourages employees to excel by
fairly evaluating their achievements and compensating them accordingly.

Initiatives for continued enhancement ofjob satisfaction and pride
In 2013, Bridgestone Group conducted voluntary checks to determine whether the necessary systems for humanresources, compensation, education and training were in place. The company then moved forward to establish
plans for system improvements at each business unit, based on the results of the voluntary checks. In addition,
Bridgestone Group conducted training for each company’s human resource coordinators to encourage system
improvements at each Group company. The company is following this plan to steadily improve the human resource
and compensation systems, as well as education and training, to ensure consistency throughout the Group.

The Bridgestone Group− 44 −

Compliance,
Fair Competition

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

Safety,Industrial Hygiene

Procurement

Quality andCustomer Value

Employee Satisfaction Survey
At Bridgestone, all employees including contract
workers are given an employee satisfaction survey
each year related to human resource policies such as
job details, workplace, compensation and a broad
range of other items. The results of this survey arereported to management and provided as feedback to
employees via the Company intranet and posters.
In 2017, the survey response rate was 94.6%, with
“General workplace attractiveness” receiving an
average of 3.20 points (compared with 3.19 points inthe previous year) out of a possible 5.0 points, while“General attractiveness of the company” earned anaverage of 3.27 points (from 3.27 points). The
Company will take these results into account as it
moves forward with efforts to enhance workplacecommunication.

Generalworkplaceattractiveness

3.20

point

（2017）

Generalattractivenessof the company

3.27

point

（2017）* Full score: 5

Collective bargaining
The Bridgestone Group regularly negotiates collective bargaining agreements across dozens of locations worldwide
and collective bargaining negotiations on revision of salary and working conditions in Japan every spring.
As of January 31, 2018, the Bridgestone Labor Union consists of 12,536 general employees (100 percent) excluding
directors and supervisors.

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Sustainability Report 2017-2018

Management Fundamentals

Safety, Industrial Hygiene
Mission

Safety First, Always
At Bridgestone, we make safety a business value. Creating a safe working place for all iseveryone’s responsibility.

Safety Mission Statement

The Bridgestone Group reﬁned the Bridgestone Safety Mission Statement in
2012, changing the wording to “Safety First, Always” and “At Bridgestone, we
make safety a business value. Creating a safe working place is everyone’s
responsibility.”
Along with reﬁning the Group-wide guidelines for Safety, Health and Disaster
Prevention activities, it established Bridgestone Safety Fundamental Activities:(1) 3S:Select and Remove, Sort, Keep Clean(2) KY:Finding hazards beforehand(3) RA:Risk Assessment(4) Safety Rules
Those activities are to be conducted by all employees in all workplaces. The
Group has have been challenging employees to understand objectives andexpectations of the activities and asking them to proactively conduct these
activities.

Management Structure
To promote Group-wide sustainability activities, Bridgestone created a structure comprising a global CSR
management system, a regional CSR management system, and working groups (WGs) for each area of activity.
The global CSR management system prioritizes initiatives in areas pertaining to a variety of global issues,
formulates global sustainability strategies, conﬁrms the progress of activities in each area under the supervision of
the CEO and COO through the Global EXCO*1, and conﬁrms the in-house penetration of CSR activities conductedby the Global Quality Management Committee (GQMC).
The Safety, Industrial Hygiene Working Group considers the most effective means to implement the Bridgestone
Fundamental Safety Activities on a global basis. The WG has three task forces (Global Management Systems, Global
Standards, and Benchmarks/KPI), and drafts global standards from each perspective. The GMP*2 collects
information on disasters and prevention related to health and safety and prepares a quarterly report that the WG
utilizes for practical application.
During 2017, the Safety, Industrial Hygiene WG reviewed the scope to which the Bridgestone Safety Mission
Statement and general regulations are applied to employees, contractors, and visitors and reported its ﬁndings at
the GQMC.
*1 Global Executive Committee: The highest-level committee associated with Bridgestone Global Group business execution

The Bridgestone Group− 46 −*2 Global Management Platform

Compliance,
Fair Competition

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

Safety,Industrial Hygiene

Procurement

Quality andCustomer Value

Bridgestone Group safety mid-term management plan and policies
The Bridgestone Group formulates mid-term management plans targeting ideals and engages in the Group-wide
discussion and promotion of speciﬁc measures in three domains to achieve these ideals: consciousness, technology
and structure (management). Since 2012, it has formulated Bridgestone Fundamental Safety Activities. Goingforward, it will continue implementing uniﬁed safety activities globally.

Activities based on the Bridgestone Safety Fundamental Activities
Bridgestone promotes activities stipulated in the Bridgestone Fundamental Safety Activities as uniﬁed safety
activities at all work sites. These activities stipulate basic safety practices 3S (derived from the Japanese words Seiri,
Seiton and Seiso, meaning Select & Remove, Sort and Keep Clean); KY (Finding hazards beforehand); and RA (Risk
Assessment), which are conducted uniformly at all work sites and by all employees conducted as ongoing initiatives.
In addition to publishing Activity Guidelines deﬁning speciﬁc implementation items and promoting activities,
instructors familiar with Bridgestone Fundamental Safety Activities are assigned to each work site to facilitate astructure for developing and executing uniform safety activities at all work sites.
The Company also conducts level-based safety education for managers and supervisors at each work site. Goingforward, it will continue initiatives to spread and establish Bridgestone Fundamental Safety Activities.

Safety awareness
Bridgestone has implemented Safety Consciousness Surveys since 2009 to cultivate safety consciousness among
employees. This survey asks questions related to the occurrence of accidents and safety activities and investigates
the degree to which safety consciousness improves each year. The answers are used to engage in improvements ofthe various issues raised in the survey and are linked to further improving safety consciousness.
In addition, the management team visits work sites in each location, including overseas Group companies, aspart of ongoing efforts to discuss the importance of prioritizing safety over all other considerations.
Moving forward, it will continue these initiatives in conjunction with guidance from the management team toactively promote the Bridgestone Fundamental Safety Activities and foster safety consciousness in the workplace.

Engineering initiatives
Standard chart for evaluating the risk of equipment use
in Bridgestone Corporation
Unit = Points (Evaluation points)

Extent of injury

Possibility of damage=Probability of injury occurring
Hardlyany

Possibility
existsHighpossibility

Deﬁnitely

*3

A

B

C

D

1

1

2

4

7

2

3

6

9

11

3

5

10

13

14

4

8

12

15

16

*3 Possibility = A < D, Extent of injury = 1 < 4
A = Surrounded by safety cover and difﬁcult to enter dangerous zone
B = Safety cover exists, but so do inadequacies such as low rail; may come incontact with dangerous area if ones pushes it
C = No safety cover, but has emergency stop equipment
D = No safety cover plus inadequacies in such areas as warning and display
3 = Serious injury (including inability to work)
1 = Minimal injury
4 = Critical injury (including death)
2 = Light injury

Bridgestone is working to lower risk by pursuing safety
from the equipment design stage and maintaining
safety during equipment use. This includes store andwarehouse equipment, as well as production
equipment. These efforts involve conducting
assessments to identify risks and establish engineering
controls and implementing work procedures to reducerisks and the potential for serious injury.
During 2017 the Company continued efforts toassign and train safety engineers (SEs) as experts inequipment safety and conduct risk assessments.
Based on the results, it is working to identify
hazardous equipment and implement safety measures,
giving priority to equipment posing major injury risks.
Bridgestone has been reappraising the hazard level ofprocedures and implementing the necessary safetymeasures through risk assessment (RA) activities
associated with the Bridgestone Fundamental Safety
Activities and constantly promoting the creation ofsafe workplaces.

System (management) related Initiatives
Bridgestone Group production work sites use a checklist to assess the status of safety and health activities including
legal compliance while working to strengthen areas needing improvement.
Information on industrial accidents that have occurred within the Group is shared along with information on thesame kind of accidents at other companies in the industry and companies in general. Countermeasures and othersteps are implemented to prevent accidents from occurring.
The Group continuously introduces and expands safety and health management systems. These efforts ensurethat the Bridgestone Fundamental Safety Activities function appropriately and promote ongoing improvements.

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Sustainability Report 2017-2018

Injuries
The Bridgestone Group has established Global Criteria for Occupational Injury to classify injuries occurring at Group
production, distribution and sales facilities as well as warehouses. In addition to compiling injury statistics on aquarterly basis, the Group puts the investigation to use in preventing similar injuries.
During 2017 the number of work-related injuries in Bridgestone Corporation was below the average Japanesemanufacturing industry level in terms of frequency*1 and below the average industry level in terms of severity*2.
In 2017, for all of the 190 production and logistics sites of the Bridgestone Group, there were 17 fatal or serious
injuries (-7 instances compared to 2016), including fractures due to falls (at December 31, 2017).
Bridgestone will continue to promote safety activities centered on the Bridgestone Safety Fundamental Activities
without compromise, deviation or exception, with the aim of reducing the number of all injuries, including serious
injuries, closer to zero.
*1 Frequency rate indicates the frequency of accidents with casualties. Frequency rate = (number of casualties/total actual working hours) x 1,000,000*2 Severity rate indicates the severity of accidents. Severity rate = (total number of working days lost/total number of working hours) x 1,000

Frequency rate*1

Rubber product manufacturing
Manufacturing
Bridgestone

1.50

Severity rate*2

Rubber product manufacturing
Manufacturing
Bridgestone

0.60

1.18

1.00

1.12

0.47
0.99

0.98
0.93

1.05

1.06

1.00

1.06

1.15
1.02

0.40
0.94

0.92
0.81

0.81

0.70

0.78

0.76

0.65

0.50

0.22

0.20
0.44
0.34

0.31

0.31

0.18

0.18

0.25

0.0
2008 2009 2010 2011 2012

0.37

2013 2014

0.00
2016 2017 (year)

0.16

0.15
0.10

0.22

0.13

2015

0.28

0.25

0.71

0.07
0.01

0.10

0.08 0.09 0.08
0.03
0.02

0.10
0.03

2008 2009 2010 2011 2012

0.06

0.09

0.0117 0.13
0.03
0.06
0.06 0.07
0.08

0.06
0.0037 0.0063

2013 2014

2015

0.006

2016 2017 (year)

Disaster Prevention Management Activities
The Bridgestone Group has created a Disaster Prevention Global Guideline based on previous incidents with primary
focus on Disaster Prevention preparedness exercises, including incipient ﬁreﬁghting drills and preventative inspections
such as electrical wiring. We continue to strengthen ﬁre prevention activities and strive to create safe, stress-freeworkplaces.
Similar to injuries, the company shares information on ﬁres that occur within the Group and the measures taken toprevent similar accidents.
Bridgestone Group has designated September 8 as Bridgestone Group Disaster Prevention Day, and the company’s
workplaces now conduct disaster prevention drills every year on that day.

Global Disaster Prevention Center
To instill in all Group employees the Bridgestone Safety Mission Statement of “Safety First, Always” from a disasterprevention perspective, the Global Disaster Prevention Center was established in Kodaira, Tokyo, in September 2015
and is located inside Bridgestone.
The Global Disaster Prevention Center engages in education and training to review the causes of unforgettabledisaster prevention failures, such as the ﬁre at the Bridgestone Tochigi Plant on September 8, 2003.
Bridgestone conducts various types of training at the Global Disaster Prevention Center, including sessions that
resonate with employees because of stories told about past ﬁre disasters and sessions that demonstrate the dangerof ﬁre by allowing employees to experience the sensations of static electricity and dust explosions. Bridgestone also
conducts training that leads to prevention and early detection of disasters using wreckage found in ﬁre-devastatedareas and model facilities. By introducing examples of ﬁres that have occurred not only in Japan but also overseas,
the center has established a hands-on learning environment for global disaster prevention training.
Bridgestone continually enhances the trainings provided at the Global Disaster Prevention Center. Sessions
related to natural disasters were added on March 11, 2016, the anniversary of the 2011 Great East Japan
Earthquake, and present lessons learned from that disaster.

The Bridgestone Group− 48 −

Compliance,
Fair Competition

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

Safety,Industrial Hygiene

Procurement

Quality andCustomer Value

Health Management
Health Management Approach in Japan
Our goal at Bridgestone is “To Maintain a Sound Labor Force and Create a Pleasant Workplace,” and we
conduct our health management, including healthcare management, accordingly.

Regular Check-ups
In Japan, Bridgestone conducts regular and special health checkups as well as health exams for employees working
overseas as required under the Industrial Safety and Health Law. Employees facing health issues are given proper
healthcare guidance, typically by resident industrial physicians at the Company’s Health Care Center.
In addition to having 12 industrial medicine specialists available at 12 sites nationwide, Bridgestone holds anannual meeting in which all industrial physicians participate. The Company also has a full industrial health staff,
including public health nurses, for handling special examinations and health insurance guidance.

Preventing Overwork
Bridgestone recognizes the need to avoid long hours at the ofﬁce and unusual amounts of overtime or late-nightwork to prevent health risks caused by overwork. In Japan, Bridgestone complies with the Labor Standards Act byworking to reduce overtime and encouraging employees to use their annual holiday leave. In 2017, the rate of
employees taking annual paid leave was 73.3%, with an average of 14.7 days.
Bridgestone also has a program requiring employees working more than a ﬁxed number of hours to consult withindustrial physicians to help maintain good health.

Total annual hours worked*3
2,051 hours (FY 2017)
Annual overtime hours worked
291 hours (FY 2017)*3 Total annual hours worked = (Annual regular hours worked) + (Annual overtime hours worked) - (Annual paid holidays taken) - (Other holidays taken)

Mental Health Efforts
In Japan, Bridgestone supports its employees psychological and physical health. Industrial physicians and medical
staff serve as the core of the company’s mental health efforts, along with an external Employee Assistance Program(EAP). In line with Ministry of Health, Labour and Welfare guidelines (covering self-care, consultation line care, on-siteindustrial medical staff care and off-site care), Bridgestone has established a mental health plan for each ofﬁce.

The Efforts of Bridgestone in Japan
1

Since 2006: Consultation department members carefor managers and supervisors and self-care for new
employees and mid-career hires

2

2006: Introduction of external EAP also covering
employee families

3

Since 2007: Launch of psychological consultation
website on the company intranet, providing
information

4“Return to Work Program” launched in 2010 for return
to work assistance and recurrence prevention throughties with Human Resources, superiors, industrial
physicians, main physicians and external EAP.

5

Since 2011: Strengthened secondary prevention andimplemented mental health questionnaires (stresstests), mainly during health checkups. Questionnaire
results are provided as feedback to the employee forearly detection of mental health issues.

6

Since 2013: Counseling Ofﬁce staffed by career
counselors established at headquarters. This ofﬁce
conducts two-tiered mental health care, primary andsecondary, by selecting the Company level andproviding counseling for all employees in it.

7

Since 2014: The Company conducted an“organizational diagnosis” of three ofﬁces in the Tokyo
metropolitan area. As primary prevention, initiatives
were undertaken to reduce risk of mental healthdisorders occurring as a result of the workplace.

8

Since 2016: Stress tests and organizational
assessments conducted at all business locations.

Health Program Evaluation
Bridgestone seeks transparency in its approach to evaluating occupational health efforts. The company formulated amanagement status checklist based on its original standards concerning ﬁve areas of occupational health: overallmanagement, health education, work environment management, work management and health management.
Bridgestone introduced this checklist at manufacturing facilities and/or ofﬁces in 2010, extending it to Group companies
in Japan in 2011, and conducts regular checks and makes improvements in an effort to establish and maintain thesystem. Going forward, the company will further enhance health education and continue activities to maintain andimprove the system for compliance with regulations and standards for occupational health in the Bridgestone Group.

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Sustainability Report 2017-2018

Management Fundamentals

Procurement
MissionCreate value to society throughsustainable procurement practices
Bridgestone is committed to creating value and continually working toward a sustainable
society to realize long-term environmental, social and economic beneﬁts by incorporating
the following into the entire supply chain:

1. Transparency

3. QCD & Innovation

2. Compliance

4. Sustainable Procurement Practices

Management Structure
Composed of members from around the world, the Sustainable Procurement Working Group formulates anddeploys global sustainable procurement policies and plans and conﬁrms the progress of global initiatives andactivities, which is then reported to the GCEC and the Global EXCO.
(Refer to P36 regarding the GCEC and Global EXCO)

CSR Procurement Promotion
The Bridgestone Group pursues CSR procurement through a Supply Chain Partnership Development Systemframework, which improves the overall competitiveness of the Bridgestone Group and its business partners.
The Bridgestone Group holds an annual conference to explain its procurement policies to ensure that business
partners understand Bridgestone procurement policies. Information pertaining to the business environment
surrounding the industry, as well as the Group’s strategy for mutual improvements in terms of competitiveness, wasshared with suppliers. The status of Supply Chain Partnership Development System activities was introduced andbusiness partners were asked to engage in these activities with Bridgestone.
The “Green Partner Award” was established in 2013 to recognize suppliers for their environmental activities.
Based on the Environmental Mission Statement of the Bridgestone Group, “In harmony with nature,” “Value natural
resources” and “Reduce CO2 emissions,” this award commends activities that help reduce environmental burdens
and result in environmental contributions. Two companies won the Green Partner Award in 2017, Sumitomo
Bakelite Co., Ltd. and REIDAN CO., LTD.

The Bridgestone Group− 50 −

Compliance,
Fair Competition

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

Safety,Industrial Hygiene

Procurement

Quality andCustomer Value

Monitoring & Supporting Improvement
Since 2009, Bridgestone has offered on-site assistance to business partners whose CSR Self-Check Sheet results
indicated environmental initiatives in need of improvement. In 2017, Bridgestone sent employees fromenvironmental-related departments to one business partner’s worksites to review environmental initiatives and offer
advice on improvement.
Furthermore, the Company has started regularly visiting business partners considered in need of improvements
related to non-environmental initiatives. Bridgestone will continue strengthening efforts aimed at improving the levelof CSR activities throughout the supply chain.
In 2017, the Bridgestone Group continued its efforts to promote a better understanding of CSR activities on thepart of business partners, distributing CSR Procurement Guidelines and CSR Self-Check Sheets to business partners inJapan as well as in Europe, Southeast Asia and China. These included items related to the issues of human rights,
labor practices, health and safety, disaster prevention, the environment, fair business practices and ethics, information
security and social contributions. Bridgestone offers proposals for improvement based on Self-Check Sheet responses
and visits business partner production sites to provide advice as part of its on-site environmental assistance.
In 2017, 96 percent of all business partners responded that they had initiated CSR activities. Going forward,
Bridgestone will continue to work closely with its business partners to improve and increase CSR initiatives throughseminars and other methods throughout the supply chain.
In addition, CSR Seminars were held for business partners selected based on the results of their CSR Self-Check
Sheet.

Increase transparency & ensure compliance
The Bridgestone Group pursues various initiatives in Japan and overseas to further strengthen fair procurement
activities.
Bridgestone conducts educational programs on the Subcontract Act of Japan, which is related to theAnti-Monopoly Act, at 12 major Group companies in Japan. Bridgestone also conducts an e-learning program
through which participants can gain a better understanding of the law. In 2018, the Group will continue topromote these activities and implement educational programs on the Subcontract Act of Japan.
Since 2012, the Group has conducted education programs at the business site level about purchasing
compliance for members of related administration departments. In 2017, 194 employees participated, including
one who commented “My overall understanding has deepened, and I understand what actions I must never engage
in while doing my job. This was very useful.” In addition, the Bridgestone Group continues to conduct surveys on
supplier satisfaction and conﬁrm that fair procurement activities are being undertaken at the Group through the 100
supplier companies that take part.
Results of the 2017 survey showed that while the level of satisfaction generally improved, some suppliers desired
more improvements in communication. The Bridgestone Group also worked with an external research ﬁrm to
conduct interviews through visits to some suppliers to gain a deeper understanding of supplier opinions andthoughts. In light of the survey results, the Group plans to continue training employees in procurement departments
to improve efforts in this area.

Participants and graduates of the 2017 Subcontract Act of Japan program
Number of times courses were held in 2017：3
Number of participants: 319
Number of graduates: 293

Results of the 2017 subcontracted operations audit revealed administrative matters such as errors in
documentation requiring improvement at some work sites, which Bridgestone plans to conduct and follow up on
going forward.
Moving ahead, Bridgestone will continue to enhance and promote fair transactions.

− 51 −

Sustainability Report 2017-2018

Case

5

Effort on Realizing Sustainable Supply Chain

Raw Material Production

Procurement

Manufacturing

Launch of Global Sustainable Procurement Policy
In February 2018, Bridgestone Group announced a new Global
Sustainable Procurement Policy to help identify and evaluate
qualiﬁed suppliers, promote best practices, and serve as acommunication and improvement tool for the industry. The
policy reﬂects a company commitment to procurement
programming that drives action to realize long-term
environmental, social and economic beneﬁts. The policy isapplicable to all purchased materials and services, as well as all
suppliers globally.
Guided by the company’s “Our Way to Serve,” the new policyaligns with the company’s goal of using “100 percent sustainable
materials*” in its products as the long-term vision by 2050 andbeyond. It combines previous company guidelines into a single
document that sets minimum requirements to conduct businesswith Bridgestone, as well as preferred practices that cancontribute to faster realization of sustainable supply chains. As alarge user of natural rubber, the policy describes the company’s
expectations with respect to critical issues within the complex
global natural rubber supply chain.

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*The Bridgestone Group deﬁnes sustainable materials as materials that “1) that come fromresources with a guaranteed continual supply, 2) that can be used as part of our business over the
long-term, and 3) that have a low environmental and social impact over the lifecycle fromprocurement to disposal.”

Development Process

Survey of societal
expectations anddemands

The Bridgestone Group conducteda far-reaching survey on the issues
and needs surrounding
procurement activities,
considering sustainable sourcing
policies and procurement
guidelines such as
ISO26000/20400 as well as suchaspects as the environment,
human rights and safety.

The Bridgestone Group

Draft preparation & stakeholder review

Approval and issuance

The Sustainable Procurement Working Group of “Our Way to Serve”
formulated a draft policy with assistance from the relevant functions
within the Bridgestone Group and external specialist consultants.

The policy was reported to Global
EXCO then approved by the CEO,prepared in 12 languages andissued simultaneously in all
regions.

The Bridgestone Group gained insights from external stakeholders,
including international consultants, non-governmental organizations(NGOs), materials suppliers, natural rubber farmers and key customers,
to ensure the policy is thorough, reﬂects industry standards and bestpractices, and is supported by an effective implementation andcommunication plan.

− 52 −

Distribution

End-UseRecycling/Disposing

Implementing the Policy
As an immediate ﬁrst step, the BridgestoneGroup has prioritized working closely with its
employees, suppliers and customers and otherindustry experts to implement the policy. Overthe spam of 2017-2018, the Group will workwith its suppliers and partners to ensure thatthey have received the policy and understand it.
Following acknowledgment of the policy,
suppliers will receive a self-assessment
questionnaire. The Group currently isdeveloping an additional supplier assessment for
the traceability of natural rubber and will beworking to partner with the industry and otherqualiﬁed experts to support ongoing monitoringof supplier compliance.

Educate Suppliers(Feb - June 2018)

Level

Description

1

Direct material suppliers,
providing materials used
in ﬁnal products

2

Indirect material suppliers,
providing products andservices that directly
enable production

3

Indirect material suppliers,
providing goods and/or
services that indirectly
enable production and/or
the overall business

Issue
PolicySuppliers
Acknowledge
Receipt

Complete SupplierSelf-assessment
Questionnaires(June - September 2018)
PolicyAlignment

Traceability

Tire Industry Project
WBCSD Tire Industry Project (TIP)
CEOs participating in the WBCSD TIP, representing approximately 65 percent of the world’s tire manufacturing
capacity, meet every two years to review TIP’s progress and set a forward-looking agenda for new and continuing
work. A portion of that work focuses on efforts to bring sustainable natural rubber production closer to reality.
Much work has been done to identify best practices for responsible sourcing of natural rubber, and now TIP will
endeavor to identify the most effective ways to achieve these common goals, including evaluating sustainability
best practices and identifying appropriate governance structures and potential platforms.

Technology Provision to Improve the Productivityof Small-Scale Natural Rubber Farmers
The majority of natural rubber production in the world is conducted by small-scalerubber farmers in Southeast Asia. The Bridgestone Group uses large volumes ofnatural rubber produced by such farmers. Productivity of these rubber trees
raised by these farmers often is low and the quality and volume of natural rubber
produced varies. To help small-scale farmers improve the quality of theiroperations, P.T. Bridgestone Sumatra Rubber Estate (BSRE) and P.T. Bridgestone
Kalimantan Plantation (BSKP), subsidiaries that directly operate rubber farms inIndonesia, provide these farmers with productivity-improving technologies
Bridgestone has developed on its own company-owned rubber farms.

− 53 −

Sustainability Report 2017-2018

Management Fundamentals

Quality and Customer Value
MissionCreating Customer Value & Trust
To create a global framework in collaboration with all related Bridgestone entities andstakeholders to proactively identify, prioritize and address customer quality issues
in keeping with the intentions of our founder to:“Serve Society with Superior Quality”

The purpose of the Quality Mission Statement is to empower the future directionof Bridgestone based on the spirit of its founder, Shojiro Ishibashi, by bringing theBridgestone DNA and proud heritage of quality and continual improvement to
new generations of employees. Through innovation and employee engagement,
Bridgestone can achieve unparalleled quality, not only in manufacturing but also
throughout the value chain and in all products and services delivered to thecustomer.
All Bridgestone Group global business domains, functions and employees createcustomer value and trust through innovation and improvements.
Quality Mission Statement

Management Structure
In 2017, Bridgestone enhanced the quality improvement PDCA cycle and themonitoring activity of quality control index, based on the new structure.
In 1968, Bridgestone received the Deming Application Prize, an eminent
quality award, and 2018 will mark the 50th anniversary of that achievement.
Looking ahead to this milestone year, to achieve customer value creation basedon the Quality Mission Statement, Bridgestone will further strengthen its quality
structure throughout the value chain. As a system for this, Bridgestoneestablished the Global Quality Management Committee (GQMC) as a neworganization to strengthen governance in order to realize the Quality Mission
Statement on CQO organization and implement the PDCA cycle activities forfurther upper level.
Earning Deming Prize (1968)

The Bridgestone Group− 54 −

Compliance,
Fair Competition

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

Safety,Industrial Hygiene

Procurement

Quality andCustomer Value

Group Global CQO Organization

GHO*1/GMP*2

SBUGroup Global CQO
Organization

Japan Tire SBU

CQO

Disseminating quality
policies

Americas SBU

CQODevelop and implement
the quality policy

Visualizing major
improvement
opportunities

Europe, Middle East
and Africa Tire

CQO

China, Asia and Paciﬁc
Tire SBUs

SBU self-conducted
quality controls andinspections

CQO

Quality improvement
PDCA activities

Global Solution SBU

CQO

Address signiﬁcant quality
issues

Reviewing market
performance
Monitoring andauditing quality
Developing quality
systems

Speed upand improve
precision inGroup

GlobalCQO

Enhancing quality
functions*1 Global Head Ofﬁce*2 Global Management Platform

Internal Manufacturing
CQO
Business
Chemical andIndustrial Products SBU CQOAmericas SBU(Diversiﬁed Products)

CQO

Cycle Business

CQO

Sports Business

CQO

Strengthen the productquality function
Determine market measures

VOC/VOB Management
In complying with changing the business model from “product out” to “market in,” the Bridgestone Group has
promoted utilization and improvement of the Voice of the Customer (VOC)/Voice of the Business Partner (VOB)
management system and incorporated it into the development step to increase customer value. In each region,
systematic management of VOC/VOB has been implemented according to market conditions and used to optimize
products and services offered to customers.
In Japan, the customer summary system collects VOC data from the Customer Communication Center and otherrelated departments. The system has been utilized by related departments to improve product and service quality.
Bridgestone Americas and Bridgestone EMEA (Europe, Middle East and Africa) integrated corporate activities
such as commercial market segmentation surveys and understood overall consumer satisfaction with tire patterns
using Net Promoter Scores (NPS) to support future product plans. Customer value indicators (CVI) also were set andused as an important indicator.
In Asia and Paciﬁc regions, Bridgestone periodically conducts market research on competitor products. Results
are fed in to the development step.
Bridgestone Group will continue to build a solution business model while improving and strengthening the
VOC/VOB management system. Through these activities, Bridgestone improves product and service quality andcreates value for its customers.

− 55 −

Sustainability Report 2017-2018

Quality Assurance Through the Value Chain
Entire value chain
Customers

VALUE CHAIN

Up
streamTowardcreation ofcustomer value
and impression

Product
strategies andbrandsDevelopment

Procurement

Meet bothcustomer values

Market research andproduct planning

Development andtechnology strategies

Raw material
strategies

Customers

Down
streamMaximize value chain

Manufacturing

Sales

Towardcreation ofcustomer value
and impression

Sales structure andchannel strategy

Meet bothcustomer values

SupplyPlants, equipment
Sourcing andandlogistics strategies
production strategies

Administrative and indirect departments (legal, production technology, quality, IT etc.)

especiallyend users

All business domains

All functions

Customers

All employees

Customers
especiallyend users

Development of Quality Assurance Activities Flow
To avoid quality issues in the development process, the Bridgestone Group standardizes the development process
at all technical centers and enhances various process check systems to improve development quality.
The Development QA*1 Consulting process was implemented in Japan in 2011 to identify and improve
potential problems in all development processes. In order to cope with problems identiﬁed by regular consulting,
Bridgestone completed the development standardization process in all product development groups. In 2016, it
expanded development process assessments to standardize the development process for production technology.
In 2015 in the Americas, Bridgestone adopted a new product development process with six gates to consider
product development from the standpoints of varied customer demands and overall brand risk. In 2017, it
expanded this process to the Latin American market.
In Europe, new product development based on the gate approach has been adopted as well. In 2016, it was
expanded to include the development of OE tires (tires ﬁtted on new cars). In 2017, all new development was
regulated by the gate approach.
Also, in Japan, Bridgestone is improving the tire stamping assurance system from the viewpoint of compliancewith regulations. It has been addressing this stamping assurance activity in the mid-term plan since 2015 in orderto enhance the system of tire stamping assurance. In 2018, this stamping assurance activity will be expanded not
only to Japan but also to the activities of global working teams such as the Americas, Europe, China and Asia.
*1 Quality Assurance

QA in Raw Material Procurement
The Bridgestone Group operates a global business, working with a wide range of suppliers to procure raw materials
and outsourced products. With the cooperation of its many suppliers, it has established Group-wide approval
criteria related to raw materials and outsourced products to ensure high quality.
Even after establishing a relationship with suppliers, the Bridgestone Group continuously monitors the quality ofgoods received, conducts supplier audits and makes other efforts to ensure suppliers are maintaining their quality
assurance structures and that products supplied consistently meet the Group’s quality requirements.
GMP and working teams in the Americas, Europe and Japan have begun collaborating to build a global raw
material supply management system. In 2017, the Bridgestone Group established a supplier’s periodic evaluation
method. It is discussing how to deal with problems and evaluation criteria for auditing.

QA in Outsourcing
GMP and SBUs are strengthening cooperation on outsourced products in an effort to raise the level of global quality
assurance. In 2016, Bridgestone launched an effort to improve the three core competencies of outsourcing(Detection, Selection and Deterrence) with the aim of enhancing outsourcing supplier management.

The Bridgestone Group

Detection

Bridgestone applied compliance procedures for OEM*2 work and made assessments of
their effectiveness. In 2017, it broadened this system to other areas and improved theaudit check sheet to reduce the quality risk of outsourcing.
*2 Original Equipment Manufacturing

Selection

Bridgestone conducted quarterly sampling inspections to prevent undeclared changes intube values. In 2017, it started outsourcing management according to revised guidelines
based on Key Performance Indicators (KPIs).

Deterrence

Bridgestone revised contracts regarding compensation for abnormalities caused byoutsourcing suppliers. The new contract terms have been applied since 2017 ascontracts are renewed.

− 56 −

Compliance,
Fair Competition

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

Safety,Industrial Hygiene

Procurement

Quality andCustomer ValueQA in Tire Manufacturing
Response to evolving demands from consumers and vehicle manufacturers, as well as megatrends shaping
automotive mobility , the Bridgestone Group is driven to improve quality in its global manufacturing processes tocontinue providing innovative, industry-leading products for consumers. Bridgestone also implements inspections
based on Group quality standards at all of its manufacturing facilities.
Bridgestone promotes the “visualization” of potential quality risks at tire production plants and proactively
implements preventive actions using the Failure Mode and Effect Analysis quality assurance method. Based on
potential risk reduction activities in 2015, it has identiﬁed and promotes the implementation of global quality
improvements utilizing its mid-term planning process. Going forward, Bridgestone aims to further improve productquality on a global basis.
In 2016, Bridgestone proceeded with the early detection of potential problems for global and rapid market
actions and the creation of a rapid and accurate risk management system for judgment and market action.
In 2018, Bridgestone will continue to nurture its culture of quality and safety to ensure the highest quality
products that provide consumers with worry free use.

QA for Diversiﬁed Products
The Diversiﬁed Products Business of the Bridgestone Group develops a range of products other than tires, including
automotive components, industrial materials such as conveyer belts and hoses, urethane-based chemical products,
infrastructure-related products, bicycles and sports equipment. In 2016, it implemented a quality improvement
project to reduce automotive vibration by identifying areas for improvement at production facilities and then making
those adjustments. It also reviewed customer feedback on sporting goods and bicycles and made continual efforts toaddress these areas.
In 2018, Bridgestone will proactively continue to develop systems and processes designed to ensure the highest
quality of all its products and identify opportunities for improvement by taking the lead on quality improvement
activities.

Human Resource Development in Support of Quality Activities
Handing Down Manufacturing Technology and Tradition
The Bridgestone Group believes it is important to hand down its traditions of quality and the skills of teammates
who have come before to younger generations by providing quality and safety training for all employees. As
deployment of the Quality Mission Statement, issued in 2016, “key persons” were assigned to train all employees
in the global Bridgestone Group. All Group departments carry out activities based on the Quality Mission
Statement to create customer value and trust by promoting improvement. The activities and best practices wereshared, which helps to level up Bridgestone.
Going forward, Bridgestone aims to develop human resources throughout the Bridgestone Group who canensure high-quality products and services.

Bridgestone Group Global TQM Conference
The Bridgestone Group has held a Global Total Quality Management (TQM)
Conference every year since 2010 that involves Bridgestone and its global
business units. The Group Global TQM Conference aims to enhance thelevel of quality activities and improve quality awareness by sharing
examples, selected from each region and SBU in the Group.
The year 2018 is memorable for Bridgestone because it marks the 50th
anniversary of the Deming Award. Bridgestone considers 2018 a milestone
year and will continue to move forward to create customer value and trust
by promoting improvement activities among all employees.

− 57 −

Sustainability Report 2017-2018

Corporate GovernanceOutside Director’s Interview

Bridgestone’s continued
striving to rise higher
is the strength of its
corporate governance.

Outside Director,
Bridgestone Corporation

Scott Trevor DavisProﬁleScott Davis is from Australia. He graduated from the University of New South Wales School of Social Sciences in 1982 andcompleted a graduate degree at Rikkyo University Graduate School of Sociology in 1988. Doctor of Business Administration.
He has held positions at the Japan Institute for Labour Policy and Training (JILPT) and served as professor of international
economics in the Department of International Economics at Reitaku University. He has been professor of the Department of
Business Administration at Rikkyo University since April 2006.
Dr. Davis specializes in strategic management and CSR. He has served as Management Advisory Committee member for
Integrex Inc. (June 2001 – April 2008); outside director of Ito-Yokado Co., Ltd. (May 2004 – May 2006); outside director of
Sompo Japan Nipponkoa Holdings, Inc. (current Sompo Holdings, Inc.) (since June 2004); outside director of Seven & i
Holdings Co., Ltd. (since September 2005); external auditor of Nissen Holdings Co., Ltd. (since March 2006); and outside
director of Bridgestone Corporation (since March 2011). He provides advice and recomendations on ensuring the adequacy
and appropriateness of decision-making by the Board of Directors from the perspective of business management and CSR.

Basic Policy on Corporate Governance
The Group considers the enhancement of corporate governance to be one of its most important management focus points.
The Group believes that working to increase management quality and enhance the transparency of decision-making is
indispensable, and accordingly, continually strives to strengthen corporate governance. This ensures that the Group
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 delineated in the Administrative
Authority Rules, and in line with the Policy Management Rules, the Company 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 both further strengthening of its
internal control system and heightened speed in execution, the Company transitioned to the “Company with Nominating
Committee, etc.” model of corporate governance in March 2016. The Group will continue striving to further strengthen
both the efﬁciency and the effectiveness of management and execution.

The Bridgestone Group− 58 −Governance by “Serving Society with Superior Quality”
Bridgestone is never satisﬁed with “good enough,” and is constantly searching for a better way, and to continuously
improve. This attitude is not limited to governance. In all of its business activities, Bridgestone places great
importance on how best to realize its corporate philosophy of “Serving Society with Superior Quality.”
For example, Bridgestone actively utilizes its Corporate Governance Code as a tool for conﬁrming that initiatives areproceeding in the right direction. Through the Corporate Governance Code Report, the company informs stakeholders
about the status of the various strengthening and improvement measures implemented in the prior year, while
promotes dialog with various stakeholders. While some companies take a passive stance toward their corporate
governance codes, Bridgestone considers theirs a positive opportunity to rise higher.
I sometimes hear it said that instilling a sense of corporate governance in management is a challenging task. This is
not an issue at Bridgestone, however, because of the shared goals.
The function of an independent outside director is often compared to applying the accelerator or brake, but inBridgestone’s case it is decisively different.
Bridgestone’s directors, through various information-sharing bodies and opportunities for communication withexecutive and corporate ofﬁcers, function as team riding in the same vehicle, sharing the same continually updated
road map. In a dramatically changing business environment, with independent outside directors drawing on
broad-ranging knowledge and experience, all the team members are working to ensure a safe and comfortablejourney.
This is also one of the strengths of Bridgestone’s governance.

“Our Way to Serve” is Still Developing – The Journey to Rise Higher Continues
CSR is a strategy and an investment. It needs to be made continually stronger. Bridgestone announced its new CSR
commitment, “Our Way to Serve,” in 2017. This new structure replaces the previous CSR “22 Focus Points” and is by
no means the ﬁnal edition. Rather than creating a brilliant CSR framework, Bridgestone is seeking to establish aframework that continues to support brilliant CSR.
The primary difference between “Our Way to Serve” and the 22 Focus Points is that in contrast to the “push” styleof striving to be the best in all 22 categories, the new framework utilizes a “pull” approach that encourages eachdivision and region to ﬁnd the issues that affect them and ﬁnd their own solutions.
Moving forward, Bridgestone Group will need to consider how globalization impacts its organization. The term
itself has not changed, though its nuance varies with the era. What is needed now to be global? And how should it beexpressed to reﬂect Bridgestone’s DNA? Is it Bridgestone as a coherent whole of various companies and regions, or are
there synergies in a different dimension altogether? At this point, not everything is clear.
At the same time, Bridgestone is working to offer solutions to address the issues faced by its customers and society.
What should be Bridgestone’s approach, and what framework should it have to achieve this? What sort of governanceis necessary? Bridgestone will continue its never-ending journey to “serve society with superior quality.”

Changes in Corporate GovernanceYear

Management oversight

Bridgestone has continued to advance its governance structure in order to further
strengthen internal controls and enhance the speed of business execution.
Mission & Foundation Framework

Operational execution
Strategic Business Unit (SBU) organization structure

2006(Followed by a progressive, continuous review of the operational structure)

2010
2011
2012

Independent Non-Executive
members of the Board of Directors

2013

Discretionary board advisorycommittees

The Bridgestone Essence
Environmental Mission Statement

Two ofﬁcers (CEO, COO) system in Bridgestone Americas
Introduction of Executive Committees
Two ofﬁcers (CEO,COO) system in Bridgestone Corp.

Safety Mission Statement
Global EXCO

(Governance / Nomination / Compensation)

2014

Compliance Committee

2015
2016
2017

Adoption of new corporate structure:

Introduction of Global Executive Committee
Restructure SBUs: BSCAP China + Asia Paciﬁc
BSEMEA Europe + ME, Africa, Turkey, & Russia

Quality Mission Statement“Company with Nominating Committee, etc.”

Global CSR Commitment

Establish Global Mining & Agricultural Solution
Company“Our Way to Serve”− 59 −

Sustainability Report 2017-2018

Corporate GovernanceCorporate Governance Structure
Corporate Governance Structure (as of March 23, 2018)
General Meeting of Shareholders
Board of Director (12)(include 8 outside directors)
Internal Directors

Inquiries

Outside Directors

Advisory Committee
to the Board of Directors

Reports(total of 8 outside directors)

Representative Executive Ofﬁcer

Governance Committee

Nominating Committee (3 outside directors)
Decide on a proposal on theappointment and dismissal of directors
to submit to the Shareholders’ Meeting

Compliance Committee

Audit Committee (5 outside directors ＋ 2 inside directors)
Audit performance of duties bydirectors and executive ofﬁcers

Compensation Committee (3 outside directors)

Management oversight

Direction

Auditing
Operational execution

Point 2We are further strengthening the governancesystem by increasing the transparency of thedecision-making process through separationand clariﬁcation of the responsibilities andpowers of the representative executive ofﬁcer
CEO (hereinafter called “CEO”) and therepresentative executive ofﬁcer COO(hereinafter called “COO”), promotion ofincreased information sharing, and proactive
review by the Executive Operational Committee
and other policy management meetings.

Executive
Ofﬁcers (7)Representative
Executive Ofﬁcers

Management andOverall Strategy
CEO and Representative
Executive Ofﬁcer
Global EXCO

Corporate ofﬁcer responsiblefor internal auditing
Internal Auditing Ofﬁce

Internal
Audit

MutualCheck

Global Executive
Committee: 11(4 nationalities)

Foreign Executive
Ofﬁcers

Overall Operations
COO and Representative
Executive Ofﬁcer
Other policy management
meetings
Executive Operational
Committee and others
Ofﬁcer Nomination andCompensation Meeting

Executive ofﬁcers
Departments in domestic/overseas Group companies

Internal Control Systems

The Bridgestone Group

Advisory
Committee
to the Board of
Directors

To further increase transparency of corporate governance, the Governance Committee and Compliance
Committee have been established as advisory bodies to the Board of Directors. These advisory committees
provide advice to the Board of Directors in regard to such matters, the governance system and related
issues, and overall compliance activities. These committees are comprised of a total of 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
and report 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.

− 60 −

Independent Auditors

Decide compensation for directors
and executive ofﬁcers

Point 1
We are making ongoing improvements to thecorporate governance system through theappropriate and active execution of duties by the
Board of Directors, the statutory committees, and
the Advisory Committee to the Board of Directors,
as well as through supervision of the executiveofﬁcers and directors.

Board of Director
Number of Directors (as of March 23, 2018)

Internal
Directors

4

persons

OutsideDirectors

8

persons

FemaleDirectors

2

persons

Foreign
Director

1

Board ofDirectors

person12

Representative
Executive Ofﬁcers

persons

Reason for Appointment and Afﬁliated Committee of Directors
Nominating
Committee

Audit
Committee

Compensation
Committee

Masaaki TSUYAHe has accumulated abundant experience through engagement in such ﬁelds asinternational relations, human resources, public relations and the implementation ofinternal controls since his appointment as Representative Director CEO in 2012, and hasstrongly promoted management reforms including strengthening corporate governance.

－

－

－

Kazuhisa NISHIGAIHe has accumulated abundant experience through engagement in such ﬁelds as
production technology, plant management and sales. Since his appointment as
Representative Director COO in 2012, he has strongly promoted management reforms
including the expansion of the tire business and diversiﬁed products business.

－

－

－

Narumi ZAITSU

He has accumulated abundant experience through engagement in such ﬁelds as
manufacturing, production technology and international business, and since 2017, while
engaging in appropriate decision making of the Board of Directors as a Member of theBoard, has been in charge of auditing of the entire Bridgestone Group and promoting
strengthening of the auditing system as a member of the Audit Committee.

－

◯

－

Kenichi TOGAMIHe has accumulated abundant experience through engagement in such ﬁelds as ﬁnance,
the diversiﬁed products business, management auditing and overseas operations, andsince 2016, while engaging in appropriate decision making of the Board of Directors as
a Member of the Board, has been in charge of auditing of the entire Bridgestone Groupand promoting strengthening of the auditing as a supervisory auditor.

－

◯

－

He has excellent academic knowledge in the ﬁelds of sociology and international
business administration, as well as abundant wisdom regarding CSR in Japan andoverseas.

◯－◯

He has signiﬁcant research experience regarding ﬁnancial systems and ﬁnancial
administration.

◯

－

◯

He has abundant experience as a lawyer at law ﬁrms in Japan and overseas, as well as
his expertise as represented by his experience of teaching corporate law at a graduate
school of law.

◯

－

◯

He has abundant knowledge about the ﬁnancial market and the ﬁnancial system, as well
as abundant wisdom regarding business management and risk management.

－

◯

－

He has broad insight into industrial technology ﬁelds, as well as his abundantadministrative experience in industrial policies at the Ministry of Economy, Trade andIndustry.

－◯－

He has abundant professional experience of accounting audits and consulting as a
Certiﬁed Public Accountant, as well as his expertise as represented by his current
experience of teaching accounting and audit at a university and graduate school, andformer appointment as an Examiner of the Certiﬁed Public Accountant Examination.

－

◯

－

He has abundant corporate management experience in the ﬁnancial industry andentertainment business industry, and is expected to contribute to appropriate decision
making of the Board of Directors by making suggestions on creation of value andestablishment of business from the perspective of customers based on his deep insight.

－

◯

－

He has high expertise as a lawyer, and is expected to contribute to appropriate decision
making of the Board of Directors based on his abundant experience and deep insight asan outside auditor and auditor of other companies and various associations.

－

◯

－

Name

Scott Trevor DAVIS
Outside Director

Yuri OKINA
Outside Director

Kenichi MASUDA
Outside Director

Kenzo YAMAMOTO
Outside Director

Keikou TERUIOutside Director

Seiichi SASA
Outside Director

Yojiro SHIBA
Outside Director

Yoko SUZUKI
Outside Director

Reason for Appointment− 61 −

Sustainability Report 2017-2018

Corporate Governance

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 in cooperation
with the Internal Auditing Ofﬁce and other bodies to audit the execution of business duties by executive ofﬁcers
and directors. These auditing activities include attendance at important meetings, such as the Global EXCO andthe Executive Operational Committee; interviews to ascertain the status of operations; reviews of importantbusiness documents; and on-site audits of business ofﬁces. Moreover, information and opinions are exchanged
with the representative executive ofﬁcers, and meetings are held with such persons as the corporate auditors ofmajor subsidiaries in Japan. In addition, the Company has assigned a corporate ofﬁcer with full-time responsibility
for auditing to assist the operations of the Audit Committee. Under the supervision of this corporate ofﬁcer,
dedicated staff have been assigned to assist with audits by the Committee. Decisions to select and replace thiscorporate ofﬁcer require the agreement of the Audit Committee.
The Internal Auditing Ofﬁce and internal auditing departments within the Company’s operating divisions andmajor 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 theCompany’s ﬁnancial statements.
The Audit Committee, the Internal Auditing Ofﬁce, and the independent auditors exchange information and opinions
as necessary and generally maintain close contact, thereby working to further increase audit efﬁciency and effectiveness.

Compensation System for Directors and Executive Ofﬁcers
Bridgestone, in deciding on executive compensation, will determine an appropriate amount of compensation inlight of Bridgestone’s business performance and scale of business, based on the four “Principles ofCompensation” of (1) retaining and cultivating superior human resources, (2) remaining competitive, (3)motivating the implementation of the global business strategy and (4) motivating an increase in shareholder
value, in view of the standard of compensation for the main domestic businesses developing global businessand the roles and responsibilities of directors and executive ofﬁcers.
Compensation system for directors(for directors who are also executives)

Board of Director, Executive Ofﬁcer andCorporate Auditor Remuneration (January-December 2017)

Established by a company-wide performance bonus
linked to the achievement of business results for theﬁscal year, as well as Performance Share Unit(PSU).

201
million yen

Business
Performance

Variable
Compensation, etc.

Fixed

Fixed
Compensation

Established by basic performance-based compensation,
additional compensation in relation to roles andresponsibilities of directors and additional
compensation in relation to roles and responsibilities ofexecutive ofﬁcers.

The Bridgestone Group(of which ¥109 million isfor outside directors)

Directors

12

persons685
million yen

Executive
Ofﬁcers9

persons＊ Figures include one director and four executive ofﬁcers who retired during
the subject ﬁscal year.

− 62 −

Evaluation of the Effectiveness of the Board of Directors’Meetings
In order to strengthen its corporate governance and promote the speed of business execution the Company has
regularly reviewed its governance performance and continually implements reforms to its governance systems
and processes (as a part of this process the Company introduced Independent Directors in 2010, introduced thedual executive roles of CEO and COO in 2012, and between 2013 and 2014 established Nominating,Compensation, Governance and Compliance committees as advisory committees to the board, established theglobal executive management committee “Global Executive Committee” in 2014 and adopted the Company
with Nominating Committee, etc. Model of corporate governance in 2016). Building upon these enhancements
the scope for the evaluation of Board effectiveness has been taken to include not only the Board and thecommittees required under the Company with Nominating Committee, etc. Model (Nominating, Auditing andCompensation Committees) but also the advisory committees (Governance and Compliance Committees). With
the objective of strengthening corporate governance, the entire scope of board functions (the Board and all ﬁve
committees – both legally required and advisory) is subject to annual evaluation in a process which involves areview of all board deliberations and their outcomes and self-evaluations of all directors. The following diagram
illustrates the structure and scope of this evaluation process.
The Board evaluation process requires the Board and each Committee to complete a formal self-evaluation
process the results of which are then submitted to the Board where the overall effectiveness of the Board’s
operation and governance performance level is evaluated. As a result of this Board evaluation it has been
determined that decision-making ensures transparency and that the oversight functions of the Board are being
carried out through timely reports to the Board for deliberation, productive discussions among members of theBoard, active deliberations at Board meetings taking the various perspectives of external independent directors
into account and the ongoing efforts of the legally-required and advisory committees to create an organization of
global awareness.
Also, in February 2018 the Board revised its authority, and put even greater focus on deliberations concerning
management strategy. From now on the Board, in efforts to improve the Company ever further, is addressing theenhancement of governance and continuous improvement of all the functions of the Board of Directors.

Internal Control Systems:
Basic Approach and Implementation
With regard to Bridgestone’s internal controls system for ensuring that the company carries out its businessappropriately, decisions on improvement strategy are made by the Board of Directors, and the Representative
Executive Ofﬁcer is then entrusted with the carrying out of these decisions; the Representative Executive Ofﬁcer
receives reports on the status of the improvements and related operations, and monitors implementation, torealize further improvement.

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 GovernanceCode” was added to the listing rules of the Tokyo Stock Exchange in 2015 to contribute to the realization ofeffective “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”.
Web

https://www.bridgestone.com/corporate/library/corporate_governance/pdf/2018_Report_on_the_Corporate_Governance_Code.pdf− 63 −

Sustainability Report 2017-2018

Bridgestone GroupAwards 2018

The Bridgestone Group Awards are a recognition program open to allorganizations and employees of the Bridgestone Group. The Awards werecreated with the purpose of increasing employee awareness of corporate
activities based on the Bridgestone Corporate Philosophy, fostering a sense ofunity among Group employees and recognizing accomplishments. This
recognition is the highest level of awards within Bridgestone Group and plays animportant role in working toward achieving the Group’s ultimate goal of
becoming a truly global company and “Dan-Totsu” (Japanese term for theabsolute and clear leader) in all aspects of our businesses.
Based on its Corporate Social Responsibility (CSR) commitment “Our Way toServe”, the awards fall into ﬁve categories: “Achievement”, “Mobility”, “People”,“Environment” and “Management Fundamentals”. Bridgestone’s global
executive committee 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, sevenactivities were selected for recognition this year.
The Bridgestone Group considers the Bridgestone Group Awards as animportant management tool. Amid signiﬁcant change in our operating
environment, innovation and continuous improvement is essential in order tosecure a competitive advantage and create value for both the customers andsociety. By recognizing outstanding activities through the awards and sharing
examples of best practices, the company believes they can achieve further
improvements across the entire Group.
The activities selected for recognition are as follows.

Achievement: Two Winners

Launch of Global CSR commitment “Our Way to Serve”
Bridgestone Corporation
Bridgestone Americas, Inc.

Bridgestone Europe NV/SA
Bridgestone Asia Paciﬁc Pte. Ltd.

This activity entails the launch of the new global CSR commitment. The Grouplaunched its “Our Way to Serve,”global commitment to serve as a guide for all
Group employees. This commitment was developed by a project teamcomprised of members from around the world that formulated the initialconcept for the global CSR commitment as well as a communication plan for its
deployment. “Our Way to Serve” was successfully launched in March 2017.

“Fueling our Future” - Recruitment with new digitally-enabled tools
Bridgestone Europe NV/SA
This program entailed the development of a new recruitment andon-boarding approach for Bridgestone Europe’s Technical Center (TCE). In
order to drive growth and innovation, TCE needed to create a pipeline oftechnical talent to enhance its product development and digital solutions
capabilities. Through using a combination of digital tools as well as process
improvements, TCE was able to attract a globally diverse group ofengineering talent while reducing the overall time to hire.

The Bridgestone Group− 64 −

Mobility: One Winner

Collaborative development of global digital solution platform
Bridgestone Corporation
Bridgestone Tire Japan Co., Ltd.
Bridgestone Americas Tire Operations, LLC

Bridgestone Europe NV/SA
Bridgestone Asia Paciﬁc Pte. Ltd.

This activity entails Groupwide effort to develop and deploy global digital
tools in Fleet solution in order to contribute Fleet customers in safer
operations, higher economic beneﬁts and lower environmental impacts.
“Toolbox”, one of the digital tools, manages basic customer information as
well as their tires’ information. “Toolbox” has already been deployed by morethan 80 countries worldwide. Linked with other digital tools (“BASys” and“Tirematics”), “Toolbox” enables to provide greater customer value whiledeveloping tires that better reﬂect customer needs.

P
People: Two Winners

Developing Community Trust with integrated Growth
Bridgestone India Private Ltd. (BSID)
This activity recognizes Bridgestone India’s (BSID) effort in building asustainable relationship with the local community in Pune, India, where its tire
plant is located. BSID developed community trust through the constructionof schools, provision of health checks, road safety classes and other activities.

Social Caravan: serving people and communities
Bridgestone Argentina S.A.I.C. (BSAR)
This activity entails Bridgestone Argentina’s (BSAR) Social Caravan project. BSAR
has worked together with its stakeholders, including employees and business
partners to deliver truckloads of donated supplies to rural schools that are lack ofresources. Since the launch of this project in 2010, the Social Caravan have 83
tons of supplies to more than 2,300 students at 50 schools in seven provinces of Argentina with the help of 300 volunteers.

E
Environment: One Winner

Development of Conveyor Belt materials with Zero Volatile Organic Compounds (VOC)
Bridgestone Mining Solutions Australia Pty. Ltd.
This activity entails the development of conveyor belt splicing materials* that
do not use Volatile Organic Compounds (VOC). These products haveprovided customers with easier and safer working environments compared tosimilar existing materials, in addition to contributing to reducing
environmental footprint with zero VOC.
* Materials used for connecting conveyor belts

Management Fundamentals
M: One WinnerInnovative mixing technologies for next generation tread compounds withsuperior performances
Bridgestone Europe NV/SA

Bridgestone Corporation

This activity recognizes the development of an innovative mixing technologythat enables to control nano-scale polymer composites. This technology canbe used to produce high-quality tread materials that contribute to longer
wear life, higher fuel efﬁciency, and superior wet grip performance in tires.
New products employing such tread materials have earned much praise frommedia and independent parties and have thus helped bolstered sales in
European operations.

− 65 −

Sustainability Report 2017-2018

Stakeholders Communication
Bridgestone has a long history of embracing its responsibility to help advance sustainable development and solve
social issues.
Through proactive communication with stakeholders, the company seeks to facilitate an accurate understandingof the Bridgestone Group and its business activities. Bridgestone Group also uses communication as a means ofgathering information on the opinions, evaluations and anticipations of stakeholders so that this input can beincorporated into business activities to achieve ongoing improvements with a view toward sustainable growth.
Given the global nature of its business, the Bridgestone Group is endeavoring to optimize all aspects of its
communication activities by establishing systems for transmitting uniform messages with one voice.
The Bridgestone Group has emphasized communication with various stakeholders. It strives to clarify its
responsibilities and the issues it faces with regard to each stakeholder group and to utilize the ideal communication
methods and venues accordingly.

Communication Activities of the Bridgestone Group
Major stakeholder
groupsResponsibilities and issues of
the Bridgestone Group

Customers

Development of appealing
products and services
Swift provision of ideal response
and support measures
Appropriate information
provision
Effective management ofcustomer information

Responses to Customer Communication Center inquiries
Analysis, database compilation and internal utilization ofcustomer input
Rubber and tire museum Bridgestone TODAY
Transmission of information via websites and social media
Daily sales and service activities
Customer satisfaction survey

Appropriate and timely
information disclosure
Maximization of corporate
value

Annual Shareholders’ Meeting
Corporate Governance Reports
Corporate Governance Code-related reports
Financial results review meetings and Mid-Term
Management Plan explanatory forums
Information disclosure through investor relations website
Reports based on International Integrated Reporting Framework
Explanatory forums for investors
Individual interviews with investors

Shareholders
and investors

Business
partners

Employees

Local
communities,
NGO

Fair and impartial transactions
Promotion of CSR
procurement

Main communication methods and opportunities

Daily procurement activities
Procurement policy explanatory forums/CSR seminars
Formulation and deployment of sustainable procurement policies
Supplier awards
Discussions with management (distributor meetings)

Respect for human rights
Promotion of diversity(diverse
working styles)
Utilization of ideal humanresources and development of
human resources
Promotion of occupational
health and safety and healthand productivity
management
Facilitation of mutual
understanding between laborand management

Employee satisfaction surveys
Group and nomination-based trainings
Personnel evaluation systems and career development consultation
In-house open application systems
Meetings between labor and management
Transmission and sharing of information through in-housenewsletters and intranet
Meetings allowing for direct communication between
employees and management
Bridgestone Group Awards and other reward systems
Internal events related to the Olympic and Paralympic
Games

Contributions to local
communities
Environmental preservation
support through social
activities
Activities in regions with
Bridgestone operating sites

Plant tours for community members
Environmental and safety education activities
Sponsorship and aid for local events
Bridgestone x Olympic x Paralympic a GO GO!
Northern Kyushu torrential rain recovery support activities
Post-Great East Japan Earthquake reconstruction support
activities
Dialogue and collaborations with NGOsdaily
as necessary
daily
as necessary
daily
as necessaryMarchas necessary
as necessary
as necessary
as necessary
10 times in 2017as necessarydaily
2 times a year

1 time a year
1 time a year
as necessary
as necessary
1 time a year
as necessary
as necessary
as necessaryAward:1 time a year
as necessary

as necessary
as necessary
as necessary
4 times in 2017
1 time in 2017
2 times in 2017as necessary→Main accomplishments in 2017: Formulation of sustainable procurement policy

Government
agencies,
industryorganizations
and education
institutions

The Bridgestone Group

Contributions to thedevelopment of a safe andreliable mobility society
Contributions to educational
activities
Collection and exchange ofvarious opinions regarding the
supply chain

Dialogue and collaborations with economic and industry
organizations
Engagement with government ofﬁcials in countries of operation
Participation in the Tire Industry Project operated under
the World Business Council for Sustainable Development
Interaction and exchanges of opinion with municipal
government agencies
Communication, coordination, and support throughcooperation via industry-government-academia partnerships− 66 −

as necessary
as necessary
as necessary
as necessary
as necessary

Third-party Assurance ofEnvironment Data and Social Data
The Bridgestone Group received the assurance of a third-party institution to ensure transparency, completeness,
and accuracy of water intake results and results of tests concerning 2020 CO2 emission reduction targets and Social
data.

https://www.bridgestone.com/responsibilities/esgdata/pdf/third-party_assurance.pdf

CO2 emission data (Scope 1,2,3) was provided through evaluation by a third-party institution
based on ISAE3000 and conforming to ISO14064-3; water intake data was provided by
testing implemented by a third-party veriﬁcation based on and conforming to ISAE3000.
Veriﬁcation of primarily production based in 2 countries, 4 bases/facilities, was conducted byon-site inspection; issues at the various bases were identiﬁed and solutions were proposed
and implemented.
Initiatives to further reduce CO2 emission also are being implemented.
Locations where on-site inspection was implemented for third-party veriﬁcation in 2018

Name ofcountryJapan

Name of facility

Main product(s)Function of CO2 emission andwater intake report

Bridgestone Corporation
CSR, Environment & Quality Management
Planning Divisionー

Summary and report concerning
amounts of CO2 emission (SCOPE 1/2/3)
and water intake at various facilitiesーCalculation and reporting of
personnel-related and occupationalsafety data

Bridgestone Corporation

Japan

CSR, Environment & Quality Management
Planning Division,
Human Resources and Labor Relations Division,
Safety, Disaster Prevention and Environmental
Enhancement DivisionJapan

Bridgestone Corporation
Kurume Plant

Tire

Measurement of and report concerning
amounts of CO2 emission and water
intake from facility

Japan

Bridgestone Corporation
Yokohama Plant

Conveyor belt, damping rubber,
vibration reduction rubber andother rubber-related products

Measurement of and report concerning
amounts of CO2 emission and water
intake from facility

Indonesia

P. T. Bridgestone Sumatra Rubber Estate

Block natural rubber

Measurement of and report concerning
amounts of CO2 emission and water
intake from facility− 67 −

Sustainability Report 2017-2018

ESG DataManagement-Related Data
Data items

Sales of the group
Rubber production volume
Number of employees
Number of manufacturing facilities*1

GRI

FY2015FY2016FY20173,790 billion yen
1,790,000 tonnes
144,303172

3,337 billion yen
1,800,000 tonnes
143,616169

3,643 billion yen
1,880,000 tonnes
142,669
164

FY2016FY2017

GRI102-7
GRI102-7
GRI102-7
GRI102-7*1 Number of facilities as of April 1 each year (as of the end of December each year for other data).

Environment-Related Data
Data items

FY2015

GRI

Amount of raw materials used

4,811 thousand tonnes

4,795 thousand tonnes

5,039 thousand tonnes GRI301-1

Amount of recycled rubber

16,066 tonnes

16,356 tonnes

20,369 tonnes

GRI301-2

Reclaimed products rate--

60.45%GRI301-3** Total energy consumption

45,196 thousand GJ

44,822 thousand GJ

46,490 thousand GJ

GRI302-1** Energy consumption (fuel)*2

686 thousand kl

678 thousand kl

712 thousand kl

GRI302-1** Energy consumption (electricity)

4,649 thousand MWh

4,650 thousand MWh

4,802 thousand MWh

GRI302-1** Energy consumption (steam)

GRI302-1

1,864 thousand GJ

1,797 thousand GJ

1,609 thousand GJ

Energy consumption per unit of sales

1,192 GJ/100 million yen

1,343 GJ/100 million yen

1,276 GJ/100 million yen GRI302-3

Reduction volume of energy consumption

1,152 thousand GJ

374 thousand GJ-1,667 thousand GJ

Energy consumption outside of the organization-

1,674,023 thousand GJ 1,750,933 thousand GJ GRI302-2** Total water intake

77,545 thousand m** Water intake (surface water)

4,943 thousand m** Water intake (groundwater)** Water intake (water supply, industrial water)** Water intake (seawater)** Greenhouse gas emissions (SCOPE 2)** Greenhouse gas emissions (SCOPE 3)*

71,584 thousand m

3

4,702 thousand m

3

11,402 thousand m

3

19,999 thousand m

341,200 thousand m

3

480,506 thousand m

Volume of recycled water** Greenhouse gas emissions (SCOPE 1)

GRI302-4

4,802 thousand m

GRI303-1

3

GRI303-1

3

11,623 thousand m

3

19,545 thousand m

3

35,714 thousand m

3

35,206 thousand m

455,646 thousand m

3

70,241 thousand m

3

3

11,785 thousand m

3

GRI303-1

18,448 thousand m

3

GRI303-1
GRI303-1

3425,854 thousand m GRI303-33

31,856 thousand t-CO

2

1,828 thousand t-CO

2

1,922 thousand t-CO

2

GRI305-1

2,502 thousand t-CO

2,448 thousand t-CO

2,336 thousand t-CO

GRI305-222

2

122,034 thousand t-CO 122,834 thousand t-CO 128,884 thousand t-CO GRI305-3

3

2

2

2

CO2 emissions per unit in lifecycle stages*4

366 t-CO /100 million yen

412 t-CO /100 million yen

380 t-CO /100 million yen GRI305-4

CO2 emission reduction rate in the operations
and products’ after-use(compared with 2005)

37%

29%

35%

GRI305-5

NOx emissions (from Bridgestone Corporation)

699 tonnes

417 tonnes

355 tonnes

GRI305-7

SOx emissions (from Bridgestone Corporation)

402 tonnes

357 tonnes

372 tonnes

GRI305-7

Total water discharge

61,744 thousand m

Waste discharge

296 thousand tonnes

313 thousand tonnes

310 thousand tonnes

GRI306-2

Volume of recycled waste

265 thousand tonnes

284 thousand tonnes

280 thousand tonnes

GRI306-2

Recycling waste rate

89%

91%

90%

GRI306-2

Volume of waste landﬁll

31 thousand tonnes

29 thousand tonnes

29 thousand tonnes

GRI306-2

Investment in environmental preservation*5-

4.4 billion yen

3.3 billion yen--

5.4 billion yen

7.1 billion yen-

2(of Bridgestone Corporation)

Expenses for environmental preservation*

5(of Bridgestone Corporation)

3

2

55,671 thousand m

3

2

55,728 thousand m

3

GRI306-1

Environmental preservation effective amount*

1.7 billion yen

2.1 billion yen

2.1 billion yen

Resource productivity*7

0.788million yen/tonnes

0.696million yen/tonnes

0.723million yen/tonnes GRI301-1

Sites with ISO 14001 certiﬁcation*8

99.4%

99.4%

98.7%

6

(of Bridgestone Corporation)-

Environment-related data represents all Bridgestone Group plants for the period between January 1, 2015, and December 31, 2015, for 2015 results; between January 1,
2016, and December 31, 2016, for 2016 results; and between January 1, 2017, and December 31, 2017, for 2017 results. Part of the data includes estimated ﬁgures.
Because we reﬁned past data, the data above differs slightly from Sustainability Report 2015.
*2 Includes fuels used for in-house power generation.
*3 Category 8, 13 and 15 are excluded of the 15 categories in SCOPE 3 of the GHG protocol.
*4 CO2 emissions per unit of sales produced from lifecycle stages from procurement to manufacturing, distribution and disposal.
*5 Calculated with reference to the Environmental Accounting Guidelines 2005 (Ministry of the Environment, Japan).

The Bridgestone Group− 68 −*6 Calculated based on the Environmental Accounting Guidelines 2005
(Ministry of the Environment, Japan).
*7 Sales per raw material used．
*8 Sites targeted by Bridgestone for ISO 14001 certiﬁcation.

** Data on which assurance is provided

Social-Related Data
Data items

FY2015FY2016FY2017

Total

144,303

143,616

142,669

Japan

28,61628,32628,375The Americas

60,76260,79859,750Europe,Russia, Middle East & Africa

16,76017,24017,510China, Asia & Paciﬁc

38,16537,252

37,034

13

14

16

5

6

8

Number of employees

Total

Global Executive
Committee(Global EXCO) member

Of which, foreign members
Rate of foreign members

Executive Ofﬁcers &Vice President andOfﬁcers*9

Total

Product Safety

Sites with ISO9001 certiﬁcation*10

38.5%

Of which, foreign ofﬁcers
Rate of foreign ofﬁcers

42.9%
52

52

7

9

12

-

GRI102-7

GRI405-1

50.0%

51
13.7%

GRI

17.3%

23.1%

98.7%

99.0%

GRI405-1

GRI416-1

as of the end of December each year.
*9 Including ofﬁcers who belong to Bridgestone’s subsidiaries.
*10 Sites targeted by Bridgestone for ISO 9001 certiﬁcation.

Governance-Related Data
Data items

Number of directors in
Bridgestone Corporation(as of April 1,2018)

FY2017

Directors

12

(Men)

10

(Women)2

Of which, outside director

8

(Men)

6
12

Number of persons
Total fees

Of which, outside directors*

11

Executive Ofﬁcers*

7
109 million yen
9

Number of persons
Total fees

GRI102-35

201 million yen

Number of persons
Total fees

11

GRI102-18

2(Women)Directors*11

GRI

685 million yen*11 Total number/fees from January-December 2017

− 69 −

Sustainability Report 2017-2018

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

June 2018