Sustainability Report2018 –2019

Bridgestone At-A-Glance
Major Products
and Operations

2018 Consolidated net sales1

JPY 3,650.1 Billion/USD 32.883 Billion

2

17% Diversified Products
83% Tires

Bridgestone, the world’s largest tire andrubber company, was established in 1931 andis headquartered in Tokyo, Japan.
Bridgestone’s main businesses include:• Tires and tubes for passenger cars, trucks, buses, aircraft,
construction and off-road mining vehicles, industrial andagricultural machinery, motorcycles, scooters and other vehicles;• Automotive parts, retreading materials and services,automotive maintenance and repair services, certain raw
materials for tires and other products;

2018 Sales by Market 1

More Than 150 Countries• Diversified Products including chemical and industrial products,
commercial building products and roofing materials, sporting
goods, bicycles and other products; and,

19% Japan
47% The Americas
18% Europe, Russia,• Solutions Business that is leveraging the potential for more
tightly integrated elements of the Group’s portfolio. The Groupis working on new “solutions” service packages by combining
maintenance services, IT/sensing technology, tires anddiversified products to meet the needs of customers in mining,
fleets and agriculture.

Manufacturing facilities with ISO certification

ISO 9001 Certified

1,3

Middle East and Africa

16% China, Asia Pacific2018 Tire Production Volume (Tonnage of Rubber)11.86 Million Tonnes

27% Japan
32% The Americas
16% Europe, Russia,

99.3%

Middle East and Africa

25% China, Asia Pacific

ISO 14001 Certified

1,4

98.7%

Research and Development Investment 1,2

JPY 103.5 Billion/USD 932.8 Million

Employees1

143,509

28,793 Japan
58,998 The Americas
17,637 Europe, Russia,

Middle East and Africa

38,081 China, Asia Pacific

As of December 31, 2018.
Based on the rate of ¥111.00 to $1.00, the approximate year-end rate.
3
153 sites are targeted for ISO 9001 certification/152 sites are certified (99.3 %). Bridgestone requires all manufacturing locations in which Bridgestone has 50% and more share ratio to achieve
ISO 9001certification.
4
156 sites are targeted for ISO 14001 certification/154 sites are certified (98.7%). Bridgestone requires all manufacturing locations with 50 employees or more to achieve ISO 14001 certification.
1
2

Sustainability Report 2018–2019

Bridgestone At-A-Glance | 1

Table of Contents
Bridgestone At-A-Glance........................................................................................................... 1
CEO Message........................................................................................................................... 3
About Bridgestone..................................................................................................................... 5
Sustainability at Bridgestone................................................................................................... 10
Priority Areas........................................................................................................................... 13
Mobility............................................................................................................................. 13
People.............................................................................................................................. 20

Environment..................................................................................................................... 27
Management Fundamentals.................................................................................................... 37
Compliance, Fair Competition.......................................................................................... 37
Business Continuity (BCP), Risk Management................................................................ 38
Human Rights, Labor Practices....................................................................................... 39
Safety, Industrial Hygiene................................................................................................. 40
Procurement..................................................................................................................... 42
Quality and Customer Value............................................................................................. 44
Stakeholder Engagement........................................................................................................ 46
Bridgestone Group Awards 2019............................................................................................. 47
ESG Data................................................................................................................................ 48

About this Report
This report covers the initiatives of the Bridgestone Group,
which includes subsidiaries and affiliates around the world.
Throughout this report, Bridgestone or the “Company”
refers to the Bridgestone Corporation, while “theBridgestone Group” or “the Group” refers to all groupcompanies.

Bridgestone Corporation is the parent companyof the Bridgestone Group, which includes
the following Strategic Business Units (SBUs).
• Bridgestone Americas (BSAM) including theUnited States, Canada, Latin America, the Caribbean
and Liberia;• Bridgestone China, Asia Pacific (BSCAP);• Bridgestone Europe, Russia, Middle East and Africa(BSEMEA);

Sustainability Report 2018–2019• Japan Tire; and,• MAA (Mining, Aircraft, Agriculture) & Diversified Products
Solutions Business.
This report primarily covers the 2018 calendar year,with some additional information from late 2017 and early2019. In preparing the report, the Bridgestone Group
referenced the Reporting Principles and all Disclosures of
the Global Reporting Initiative (GRI) Standards, as well as
the International Integrated Reporting Framework of theInternational Integrated Reporting Council. The BridgestoneGroup’s most recent GRI-referenced Sustainability Report
was published in 2018. The Group intends to continue
publishing an annual Sustainability Report.

Additional information on Our Way to Serve isavailable online.

Table of Contents/About this Report | 2

CEO Message

Five decades ago, Bridgestone established its
Mission, “Serving Society with Superior Quality,”
and was also awarded the prestigious Deming Prize.
These milestones are foundational to the company
Bridgestone has become and aims to be.
The year 2018 represented several significant milestones in
the Bridgestone Group history—the 50th anniversary of theestablishment of the Company’s Mission, “Serving Society with
Superior Quality,” and the award of the prestigious Deming Prize
that recognizes achievement in Total Quality Management—atruly remarkable accomplishment by the Company five decadesago. The past year also marked the 30th anniversary of thefirst step on Bridgestone’s path to globalization—the Firestoneacquisition and merger that occurred in 1988.
These milestones were significant at the time because they werecritical steps in defining the Group’s culture. They are even more
important today because they are foundational to the Company
Bridgestone has become and the global Company it aims to be.
Five decades ago, Bridgestone set out to achieve somethingbold; with it came huge responsibility. “Superior Quality” defines
the Company’s aspiration to offer the best for customers
and society, not only in terms of its products, services andtechnology, but in all of its corporate activities. “Serving Society”
takes this commitment even further, addressing Bridgestone’s
passion for improving the safety and lives of people everywhere.
This dedication to addressing these societal responsibilities
comes to life in the Group’s global corporate social responsibility(CSR) commitment, Our Way to Serve.

Sustainability Report 2018–2019

The Bridgestone Group introduced Our Way to Serve in 2017,
focused around three Priority Areas: Mobility, People andEnvironment. These areas are supported by six Management
Fundamentals that articulate the high expectations the Company
has for operating as a responsible business. Management
Fundamentals address Compliance, Business Continuity,
Human Rights, Safety, Procurement and Quality.
To advance these Priority Areas and the Management
Fundamentals, Bridgestone named a long-time senior executive
to lead the Group’s sustainability strategy, engaging the
Global Executive Committee members, Strategic Business
Unit presidents, members of the Global CSR Enhancement
Committee, Global Quality Management Committee andBridgestone Group employees worldwide.
In 2018, the Bridgestone Group further operationalized
Our Way to Serve when it:• Implemented a Global Human Rights Policy reinforcing theCompany’s commitment to responsible labor practices,
including diversity and inclusion;• Launched a Global Sustainable Procurement Policy outlining
the Bridgestone Group’s expectations for an environmentally,socially and economically responsible supply chain; and,• Introduced the global Code of Conduct articulating the highstandards to which everyone at the Bridgestone Group holds
themselves and each other accountable.

CEO Message | 3

The Bridgestone Group cannot
achieve its management goal to
be a truly global company and“Dan-Totsu,” or the leader in its
industries, without also doing its
part to ensure a healthy future
for people and the planet.

The Bridgestone Group’s work in Mobility, People andEnvironment is closely aligned with a number of key societal
trends and issues. These include rapid urbanization, shifting
trade relationships, exploding population in certain areas andaging population in others, depletion of natural resources,
climate change and others. Equally important, the work isaligned with the Bridgestone Group’s business strategy. The
Bridgestone Group cannot achieve its management goal to
be a truly global company and “Dan-Totsu,” or the leader in its
industries, without also doing its part to ensure a healthy future
for people and the planet. To this end, the Company is especiallyproud of its collaborative work with other tire manufacturers
as a member of the global Tire Industry Project (TIP) operated
under the World Business Council for Sustainable Development.
Together with other stakeholders, TIP members recently
launched the Global Platform for Sustainable Natural Rubber totransform the natural rubber supply chain for the better.
Bridgestone is also excited to continue the Company’s long-term
commitment to the Olympic and Paralympic Movements as an
Official Worldwide Partner of both the International Olympic
Committee and the International Paralympic Committee.
These relationships connect the world’s largest tire and rubbercompany to the world’s largest sporting events, contributing to
global efforts to build a better world through sports. They also
provide exciting opportunities for Bridgestone to showcase its
commitments to community service, diversity, environmental
stewardship and sustainability—all tenets of the Olympic andParalympic Movements that also lie at the heart of Our Way
to Serve. We’re especially looking forward to the Olympic andParalympic Games Tokyo 2020 in Bridgestone’s headquarters city.
These and other initiatives that showcase Our Way to Servearound the world are highlighted in this 2018-2019 Sustainability
Report. All of us at the Bridgestone Group hope you—theCompany’s employees, customers, shareholders, suppliers,
government leaders, partners and others—enjoy learning more
about these efforts.

Masaaki Tsuya
Chairman of the Board
CEO and Representative Executive Officer

Sustainability Report 2018–2019

CEO Message | 4

About Bridgestone
Sustainability Recognitions
In 2018, Bridgestone was named to two highly
regarded environmental, social and governance(ESG) indices:• For the third consecutive year, Bridgestone was named to
the Dow Jones Sustainability World Index. The Company
received the highest score in the Auto Components industry
sector in the environmental dimension and the maximum
score of 100 in the environmental assessment criteria
for environmental reporting. Bridgestone also obtained thehighest score in its sector for climate strategy in theenvironmental dimension.
• Bridgestone was selected as a constituent of the FTSE4Good
Index Series that are designed to measure the performanceof companies demonstrating strong environmental, social andgovernance (ESG) practices.

In addition, Bridgestone self-reported its
environmental data to CDP, the most comprehensive
collection of self-reported environmental data in theworld, and received the following scores:• Climate Change: A• Forests: Submitted, not scored• Water Security: B

DISCLOSURE INSIGHT ACTION

Quality Recognitions
In 2018, Bridgestone and the Bridgestone Group received
numerous regional customer quality awards. It is especially proud
to have received two global customer quality awards, the General
Motors Supplier of the Year and the Suzuki Best Partner Award.

Sustainability Report 2018–2019

About Bridgestone | Sustainability Recognitions | 5

History
Following are key highlights in the Company’s history.
More information is available in the History section of the corporate website.

Chapter 1:
Start-up

1931

Shojiro Ishibashi founded theBridgestone Tire Co., Ltd. in Kurume,
Fukuoka, approximately one year after
the first tire based solely on Japanesetechnology was produced

1930s–1950s

Bridgestone expanded
rapidly, both domestically andinternationally.

1961

Bridgestone was listed on
the Tokyo Stock Exchange andOsaka Stock Exchange.
The Company also adopted theDeming Plan of Total Quality
Management (TQM).

1968

Bridgestone was awarded theprestigious Deming Prize for excellencein quality management. This same
year, Shojiro Ishibashi authored theCompany’s current Mission—“Serving
Society with Superior Quality”—that
continues to drive the business today.

1970s

Bridgestone continued its expansion
and built the Bridgestone Proving
Grounds in Japan to ensure the qualityof our products around the world.

Chapter 3:
Globalization

Chapter 2:Modernization ofManagement

1988

To further expand operations in North,Central and South America, as well as
Europe, Bridgestone acquired the Firestone
Tire & Rubber Company, transforming
Bridgestone into the world's largest tireand rubber company.

2008

The Bridgestone Group Awards were launched to increase employee
awareness of corporate activities based on the Bridgestone Corporate
Philosophy, fostering a sense of unity among Group employees andrecognizing accomplishments.

Sustainability Report 2018–2019

About Bridgestone | History | 6

History

2010

Bridgestone launched the annual
Group Global TQM Conference to shareand advance examples of innovationand continuous improvement acrossthe organization.

2011

The Bridgestone Essence was refined to more clearly
articulate the Company’s Mission of “Serving Society
with Superior Quality” and the four foundations that guideits work: integrity and teamwork; creative pioneering;decision-making based on verified, on-site observations;and decisive action after thorough planning.

2013

Bridgestone established the Global
Executive Committee (Global EXCO)
to propel the business forward and toensure that the Bridgestone Essence
is deployed consistently worldwide.

2014

Bridgestone became aWorldwide Olympic Partner.

2018

2015

The Bridgestone Group
completed the Bridgestone
Essence Framework.

• The Bridgestone Group launched its Global Human
Rights and Global Sustainable Procurement policies.
• The Group introduced its global Code of Conduct.
• Bridgestone was named to the FTSE4Good Index Series.
• Bridgestone became a Worldwide Paralympic Partner.

Sustainability Report 2018–2019

Chapter 4:

Journey to Become aTruly Global Company
Management goal: A truly global
company/“Dan-totsu” in each andevery aspect of the business2016• Bridgestone adopted the “Company
with Nominating Committee, etc.” 		
model of corporate governance.
• Bridgestone was named to the
Dow Jones Sustainability World
Index for the first time.

2017

The Bridgestone Group introduced
Our Way to Serve, its global corporatesocial responsibility commitment.

About Bridgestone | History | 7

Corporate GovernanceIn 2016, Bridgestone adopted a new corporate
governance structure in accordance with Japan’s“Company with Nominating Committee, etc.” model.
The company continues to enhance its governancestructure and performance. This work is detailed
in the Report on Corporate Governance Code.
In 2018, Bridgestone’s progress focused on continuous
improvements to the roles and responsibilities of the Board of
Directors. The Board restructured its authority to focus more
on formulating fundamental management policies and overall
Company business strategy, senior-level personnel matters,internal control systems, and other appropriate high-level topics.
In doing so, the Board delegated authority for other matters to
the Company’s operating divisions to best implement timely
decision-making.
Governance structure
Bridgestone’s Board of Directors is the Company’s highest
governing body. The Board is comprised of eight outside
directors and three internal directors. Additional information on
the Board of Directors is included in the Annual Report.

The CEO, COO and executive officers report to the Boardof Directors and are ultimately responsible for Bridgestone’s
performance. In order to implement the most important
strategic decisions of the Board with Group-wide implications,the Company has established a Global Executive Committee(Global EXCO) comprised of key executives from acrossthe global organization that determines and oversees
implementation of such policies and strategies. For more
information, our governance structure is detailed anddiagrammatically shown in the Annual Report.
CSR governance
The CEO is responsible for the Company’s global CSR
commitment, Our Way to Serve. An Executive Vice President
and Executive Officer of Bridgestone Corporation leads theCompany’s CSR strategy, engaging Global Executive Committee
members, Strategic Business Unit presidents, members of
the Global CSR Enhancement Committee, Global Quality
Management Committee and Bridgestone employees worldwide.

Bridgestone Americas and Bridgestone EMEA have advisoryboards of external members in order to promote thetransparency and impartiality of the decision making process
and effective corporate governance. Members of the EMEA
external advisory board are Georg Pachta and Wolfgang Dehen.
Bridgestone Americas’ external advisory board members are
William Harvey and Keith Nosbusch.

11 Board of Directors

53Internal
Directors

Japanese males

8

Independent
External
Directors

5 Japanese males
2 Japanese females
1 foreign male5

As of April 1, 2019.

Sustainability Report 2018–2019

About Bridgestone | Corporate Governance | 8

External Director Interview

Scott Trevor Davis, Ph.D.
Independent Director
Bridgestone Corporation
An independent external director’s viewof CSR at the Bridgestone Group

Fifty years ago, Bridgestone was awarded the prestigious
Deming Prize. How has this significant milestone continued toshape the organization into the global business it is today?
Five decades ago, pursuing something as significant as theDeming Prize was beyond ambitious. Achieving this enormousgoal changed Bridgestone; it was literally reborn with acommitment to process and quality improvement that set thefoundation for all it is capable of today. From the Deming Prizecame the Bridgestone Group’s Mission of “Serving Society
with Superior Quality.”
For non-Japanese speakers who can’t read the original
message of Bridgestone’s founder, Shojiro Ishibashi, it is hard
to comprehend the power of these words. They essentially saythat whatever the Bridgestone Group does today has to bebetter than what it did yesterday, and that its plan for tomorrow
has to be better than today. It is a true call to action that drives
everyone at Bridgestone to represent quality in everything – inproducts, processes, partnerships, commitments and character.
The Bridgestone Essence and drive to win was strong in
1968. I see first-hand how the Group’s commitment to quality
is unwavering and differentiates it even more today. The
Bridgestone Group is never satisfied with “good enough” andis constantly searching for better ways to deliver value forcustomers and society.
The Bridgestone Group is now a little more than one year
into its Our Way to Serve global CSR commitment. From theBoard of Directors’ perspective, how is the Group delivering
for society?
As a Board, we view the Bridgestone Group’s CSR strategy
as a long-term investment. And just like any strategic asset,
its operation must be continually strengthened. Our Way toServe is, in fact, another example of the Bridgestone Group’scommitment to continuous improvement. This desire to continue
advancing—to rise higher and perform better—is the coreof the Bridgestone brand, its corporate governance and its
global operations.
Sustainability Report 2018–2019

Important to note is that Bridgestone sits in the middle of the
supply chain for many of its customers, which is a challenging
place from which to drive a CSR strategy. However, the Grouphas made great progress and is focused on doing things well,recently introducing its new global Code of Conduct, as well
as Global Human Rights and Global Sustainable Procurement
policies. Issuing a policy is relatively easy, but the Group is also
working unbelievably hard to ensure everyone internally has
ownership of Our Way to Serve. This is extremely hard work
for any organization, but especially difficult and critical for acompany the size and scale of the Bridgestone Group.
What information would you like to share with BridgestoneGroup stakeholders around the world?
The Bridgestone Group’s commitment to contributing to theadvancement of society cannot be overstated. In all of its
business activities, the Group places great importance on how
to best realize its Mission of “Serving Society with Superior
Quality.” After all, this Mission is the very reason Bridgestone
exists. Its people have a clear idea of what can and should
be done, and continue building processes to deliver on
its commitments. It is also a key area of concern for the board
and will continue to be so for as long as the Bridgestone
Essence exists.
I am so proud to work with the Bridgestone Group and withprivileged access to the company can say I’m even more proudof and excited about its pipeline and plans for the future. The
world hasn’t seen anything yet…the Bridgestone Group will
never waiver from its aim to be better tomorrow than it is today.
Scott Davis has been an independent member of Bridgestone’s
Board of Directors since 2011. He is a professor in the
Department of Business Administration at Tokyo’s Rikkyo
University, specializing in strategic management and corporatesocial responsibility (CSR). Dr. Davis is also an Outside Directorof Sompo Holdings, Inc.

About Bridgestone | External Director Interview | 9

Sustainability at Bridgestone
Created in 2017 and launched around the world,
Our Way to Serve, the Bridgestone Group’s corporatesocial responsibility (CSR) commitment, focuseson three Priority Areas—Mobility, People andEnvironment—that help improve the way people
move, live, work and play.
These commitments are underpinned by six
Management Fundamentals that articulate thehigh expectations the Group has for operating
as a responsible business.

Priority Areas

This work is closely aligned with the Bridgestone Group’s Priority
Issues for Management Reform, including cultivating a global
corporate culture, developing human resources capable of global
management, and upgrading the global management structure.
Our Way to Serve was developed by a Bridgestone team who
utilized external consultants who referenced outside opinions,international guidelines and initiatives, and employee surveys
to align stakeholder needs with societal challenges andissues facing the Group. Our Way to Serve Vision, Priority
Areas and Management Fundamentals were reviewed by the
Global Executive Committee and ultimately approved by the
Board of Directors.

Where the Bridgestone Group can utilize its strengths and competencies to generate common
value for customers and society through innovation and cutting-edge technology.

Mobility

PeopleEnvironment

To accelerate sustainable mobility
innovations through advanced
technologies and solutions.

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

To help ensure a healthy
environment for current andfuture generations...

Accessible Mobility
Making smooth and seamless
mobility available.

Contributing to a Safer Society
Building safer communities throughservices, products, and Company andindividual initiatives.

In Harmony with Nature
To contribute to biodiversity throughhabitat enhancement, and throughenvironmental education and research.

Accessible and Inclusive Education
Expanding education and training
opportunities to develop job and life skills.

Value Natural Resources
To continually improve natural resource
conservation through operational
improvements and product design.

Smart Mobility
Utilizing unique technologies to improve
the way people and goods move.
Safe Transportation
Utilizing unique technologies toenhance safe mobility.

Promoting Healthier Communities
Promoting access to the resources
people need to lead healthier lives.

Reduce CO2 Emissions
To continually reduce emissions ofgreenhouse gases, including CO2
from our products' complete lifecycle.

Management Fundamentals
Essential for a responsible
corporation, including adherence
to basic rules and social norms:

Sustainability Report 2018–2019• Compliance, Fair Competition• Business Continuity (BCP), Risk Management• Human Rights, Labor Practices• Safety, Industrial Hygiene• Procurement• Quality and Customer Value

Sustainability at Bridgestone | Our Way to Serve | 10

Contributing to the U.N. SDGs
The Bridgestone Group is working to help achieve the following
United Nations’ Sustainable Development Goals (SDGs) as partof its responsibility as a global corporation. The Group reviewed
its business operations, policies and sustainability metrics toidentify areas where it can leverage its strengths and capabilities
to help address these pressing world needs.
Value creation thru Priority Areasand Management Fundamentals

Related SDGs

Examples of existing work contributing to SDGs targets

Mobility
Accessible Mobility• Development of tires and curbs which contribute to barrier-free bus transport (11.2)

Smart Mobility• Digital solution for efficient tire maintenance (Tirematics, Toolbox, BASys, IntelliTire,
FleetPulse) (9.1, 8.2)

Safe Transportation• Run-flat tires (3.6)• Tire safety checkup and education around the world (3.6)

PeopleContributing to a Safer Society• Seismic isolation bearings (9.1, 11.5)• Development of tough robots that can assist in disaster recovery (9.1, 11.5)

Accessible and Inclusive Education• Providing school facilities to children with limited educational opportunities (4.6)• Vocational training schools at manufacturing facilities (8.6)

Promoting Healthier Communities• Health check-up camp for residents of remote villages (3.8)

Environment
In Harmony with Nature• Reducing water withdrawal per unit at manufacturing facilities (6.4)• Reducing VOC solvent in manufacturing process (12.4)• Forest restoration initiatives around natural rubber farms (15.2)

Value Natural Resources• Retread tire (12.2)• Development of high-strength rubber (12.2)• Zero waste to landfill at manufacturing facilities (12.5)

Reduce CO2 Emissions• Introduction of biomass boiler (7.2)• Lower rolling resistance tires for better fuel economy (7.3)• Saving energy consumption in manufacturing process (7.3)

Management Fundamentals
Responsible businesspractices throughManagement Fundamentals

Sustainability Report 2018–2019• Enhancing sustainable supply chain through Global Sustainable Procurement Policy
and Global Platform for Sustainable Natural Rubber (12.2, 17.17)• Advancing fundamental human rights and responsible labor practices by implementing
Global Human Rights Policy (5.5, 8.5, 8.7)
• Implementing a global Code of Conduct that covers a broad range of ethics andcompliance topics including corruption and bribery (16.5)

Sustainability at Bridgestone | Contributing to the UN SDGs | 11

Furthering Our Way to Serve
within the Bridgestone GroupA message from Christine Karbowiak
Executive Vice President and Executive Officer ofBridgestone Corporation, responsible for Global Public
Relations, Government Relations and Sustainability
Global CSR Enhancement Committee Chairperson

The Bridgestone Group takes a holistic view of sustainability.
While the environment is one important aspect of these initiatives,
the Company’s purview is far wider and deeper. That’s why theGroup launched Our Way to Serve in 2017, built upon three
Priority Areas and six Management Fundamentals. It is also why
the Bridgestone Group launched the global Code of Conduct andglobal policies on Human Rights and Sustainable Procurementin 2018. Because they are foundational to achieving the ambitious
goals the Group set for itself, development and implementationof the Code and policies were recognized with a BridgestoneGroup Award in 2019.
Our Way to Serve will succeed only if all the BridgestoneGroup employees are engaged. In 2018, the Group surveyed
employees around the world to understand their awareness andsupport of the global CSR commitment and learned that:• 72% are aware of Our Way to Serve;• 71% believe Our Way to Serve is important for the BridgestoneGroup; and,• 61% understand the Priority Areas.
A little over one year into this journey, the Bridgestone Group is
encouraged by these findings, as well as the work to date, andlooks forward to further embedding Our Way to Serve in the
Company’s culture. The intent is that Our Way to Serve informs theCompany’s work and becomes part of its DNA. Key to doing so isthe engagement of leaders on the Global Executive Committee,
Strategic Business Unit Presidents, members of the Global CSR
Enhancement and Global Quality Management committees, andthe Bridgestone Group employees around the world.
Are Aware of Our Way to Serve
The Bridgestone Group is especially proud of the collaborative
work it has done with other members of the Tire Industry
Project, part of the World Business Council for Sustainable
Development, to launch the Global Platform for Sustainable
Are Aware of Our Way to Serve

Sustainability Report 2018–2019

Are Aware of Our Way to Serveis Important to Bridgestone

Natural Rubber (GPSNR). Together, GPSNR members,
including participants from the natural rubber value chainsand many NGOs, are moving the industry toward evenstricter standards around human and land rights, protectionof biodiversity and water resources, improved yields, andincreased transparency and traceability. Being a part ofimportant initiatives like this is another way the BridgestoneGroup is fulfilling the Company’s Mission of “Serving Society
with Superior Quality.”
The Bridgestone Group is also proud of and excited to share
progress in the Mobility, People and Environment Priority
Areas, as well as the Management Fundamentals in thisSustainability Report. Thank you for your continued interestin the Company’s work.

Engaging global employees
in Our Way to Serve
72%
Aware of
Our Way to ServeAre Aware of Our Way to ServeAre Aware of Our Way to Serveis Important to Bridgestone

Are Aware of Our Way to Serveis Important to Bridgestone

Understand the Priorety Areas

71%
Aware of theimportance of
Our Way to Serve

Understand the Priorety Areas

61%
Understandthe Priority Areas
Understand the Priorety Areas

Sustainability at Bridgestone | Furthering Our Way to Serve within the Bridgestone Group | 12

Priority Area

Mobility

Mobility

In the fast-changing world of mobility, the BridgestoneGroup is pioneering solutions that benefit end-users,
customers and society. High-performance mobility
can improve quality of life in cities with better public
transportation, reduced congestion and traffic-related
accidents, and increased accessibility.
By using resources more efficiently, theBridgestone Group can help deliver a safer
and smarter transportation experience that
also improves social and environmental
outcomes across the globe.
The Group is delivering on its Mobility commitmentsby addressing accessible mobility, smart mobility andsafe transportation.
To further advance this work, the Bridgestone Group ispartnering, for example, with mobility and technology-focused
venture capital firms Iris Capital in Europe and The WesleyGroup in the U.S. In doing so, it is in a position to strengthen
an open innovation strategy to nurture new mobility services
and solutions.

Sustainability Report 2018–2019

Mobility | 14

Accessible Mobility
Bridgestone EMEA and its retail business, First Stop,
are helping to make smooth, seamless mobility
available through initiatives like the Ranger Mobility
Solution in Spain.
Ranger Mobility Solution vans offer mobile tire maintenance,service and recharges, providing peace of mind for drivers andfleets interested in electric vehicles.
Development also continues in Japan on a Precision Docking
Tire and Curb solution that improves a bus’ proximity to thecurb. By minimizing this gap with special barrier-free concept
tires and next-generation curbstones, public transportation canbe truly accessible for riders with physical challenges. This work
was recognized with a Bridgestone Group Award in early 2019.

Bridgestone Americas and Bridgestone EMEA havealso pioneered two commercial offerings to make theright tires quickly accessible to consumers.
• TireHub, formed in partnership with The Goodyear Tire &Rubber Company, provides most U.S. tire dealers and retailers
with same-day delivery. This level of service is critical for thesebusinesses to meet consumers’ needs and expectations, while
also reducing the need for and expense of on-site inventory.
• In Europe, MOBOX provides premium tires, a warranty for all
tire damages, regular maintenance operations (i.e., oil, battery,brake, etc.) and other services for an affordable monthly fee.
The all-inclusive subscription service—similar to that for mobile
phone usage—provides convenience and peace of mind tothe consumer.

Sustainability Report 2018–2019

Mobility | Accessible Mobility | 15

Leadership Commitment

Gordon Knapp
Vice Chair and Executive Officer,
Bridgestone Corporation
Member of the Board, CEO
and President of Bridgestone
Americas, Inc.

“Around the world, how we get from place to place is changing
rapidly. Transportation is literally driving economies and humanprogress. As a responsible corporate citizen, the BridgestoneGroup is working to deliver a safer and smarter transportation
experience while also improving social and environmental
outcomes. We’ve prioritized this work and energized our employees
around the Group’s ability to meaningfully contribute to a futuresustainable society. The efforts and energy around Our Way toServe will make a difference for our organization, communities,
employees and environment for generations to come.”

Sustainability Report 2018–2019

Mobility | Leadership Commitment | 16

Smart Mobility
Being able to travel greater
distances using fewer resources
is one example of smart mobility.
To help support the research and development that advances
innovations of this nature, Bridgestone is again sponsoring thebiennial Bridgestone World Solar Challenge in 2019 by providing
tires to the solar car teams of engineering students from leading
universities on the forefront of solar energy research.
Bridgestone Cycle developed new electric-assist bicycle technology
with regenerative charging that extends travel distance without
increasing battery capacity. The Company is introducing the newtechnology in all its dual-drive—or pedal-assist—bicycles in Japan.

a tire’s full lifecycle. Bridgestone EMEA launched FleetPulse, athree-in-one solution comprised of a mobile app, a centralizedwebsite and Tire Pressure Monitoring System hardware,
helping fleets increase vehicles’ uptime, while also keeping
people and the roads safe. Bridgestone EMEA also acquired
TomTom Telematics. This acquisition builds on previous workat the Bridgestone Group to strengthen its digital capabilities
and provides a reinforced footprint in mobility solutions. With
demand for fleet-based mobility growing, fleet managers needa reliable and innovative partner to help them maximize theireffectiveness and efficiency through increased productivity andminimized total cost of ownership. The Bridgestone Groupand TomTom Telematics have the tools, insights and experience
to fulfill those demands, creating a fleet solutions powerhousethat will lead the industry into the future of mobility.

Always looking toward the future, the Bridgestone Group isalso exploring smart products that are part of a connectedvehicle ecosystem, especially for commercial customers whoneed to track performance and safety in real-time. Bridgestone
Americas has introduced IntelliTire™ that includes a unique QR
code that tracks, monitors and measures performance acrossSustainability Report 2018–2019

Mobility | Smart Mobility | 17

Safe Transportation
The Bridgestone Group’s safety
mission statement—Safety First,
Always—touches every aspectof the organization.

In 2014, Bridgestone introduced DriveGuard tires
that are engineered to travel up to 80 kilometers/
50 miles to safety after a puncture.
This work began in the 1980s in Japan when the Company
introduced run-flat technology for vehicles used by people withphysical disabilities and then began manufacturing the tires formass-produced vehicles. As the Bridgestone Group works tocontinue to advance safety in transportation, it is now testing
run-flat tires on automated driving systems at the Bridgestone
proving grounds and, at the same time, working to ensurecompliance with noise reduction regulations in Europe, Asia,
Japan and other countries.

The Bridgestone Group also supports a number ofroad-safety initiatives around the world:• At Bridgestone Americas’ headquarters in Nashville,
Tennessee, Bridgestone Teens Drive Smart is a free, half-day
workshop that pairs classroom instruction with behind-thewheel driving exercises, with activities focused on eliminating
distracted driving behaviors and improving practical driving
skills. More than 4,300 teens have participated since theprogram was launched in 2010.
• In Australia/New Zealand, the Bridgestone Group road safety
education workshops, that attract more than 50,000 highschool students each year, lay the foundation for safe road use
throughout their lives.
• In Colombia, Costa Rica, the Dominican Republic and Mexico,
the Bridgestone Group employees conduct Think Before You
Drive programs to promote driver safety in partnership withschools, universities and government agencies. Since 2016,
they have reached more than 31,000 students.
• Bridgestone India organized eye-check camps for commercial
drivers at 24 fleet locations across the country and distributed
1,085 powered spectacles to needy drivers.
• Bridgestone EMEA Technical Center employees in Rome, Italy
volunteered for the CulTire program and educated more than
175 high school students on road safety, driving behaviors andtire maintenance.
• In Indonesia, Bridgestone’s Ban Sehat, Anda Selamat
tire-safety campaign has educated more than 17,000 people
on road safety and tire maintenance over 10 years.

More information on the Bridgestone Group’scommitment to Mobility is available online.

Sustainability Report 2018–2019

Mobility | Safe Transportation | 18

Leadership Commitment

Akihiro Eto
Member of the Board
President, COO and
Representative Executive Officer,
Bridgestone Corporation“One of the Bridgestone Group’s strengths is the passionof its teammates for its Mission of “Serving Society with
Superior Quality.” This is crystalized in Our Way to Serve,
which inspires us to accelerate our solutions businessapproach to respond to the expectations of a changing
society. The Group will continue working to provide true
value to society and its customers by leveraging its assets,
including service channels, advanced technologies andproducts. I am dedicated to continuously improving
our capabilities to further enhance our competitivenessand differentiation. Collectively, the Group is committed toachieving the essential transformation of our organization
to prepare it for future opportunities and challenges.”

Sustainability Report 2018–2019

Mobility | Leadership Commitment | 19

Priority Area

PeoplePeopleAs a global leader seeking to build a truly global
Company, the Bridgestone Group strives to havea positive impact on the communities where it
operates around the world. The Bridgestone Group isdelivering on its People commitments by investing ina safer society, supporting accessible and inclusive
education, and promoting healthier communities.

Contributing to a
Safer Society

Natural disasters such as floods, hurricanes, tornadoes, volcanic
eruptions, earthquakes, tsunamis, and others strike quickly
and can have devastating effects on communities. Bridgestone
has numerous initiatives underway to help support people
experiencing natural disasters, including the following:• In 2010, Bridgestone teammates in Indonesia organized avoluntary rescue team that is regularly trained on emergency
preparedness to support colleagues and the community. The
team has handled more than eight rescue operations since its
formation. This work was recognized with a Bridgestone GroupAward in early 2019.
• More information about the Global Disaster Prevention
Center is include in the Safety, Industrial Hygiene section ofthis report.

• Some of the most difficult-to-access areas are sites impacted
by extreme disasters such as earthquakes, mudslides,
hurricanes and tsunamis. To help rescue people and ensure
safety in these situations, Bridgestone is partnering with theTokyo Institute of Technology on the development of “toughrobots” that can operate under difficult conditions. This
collaboration has led to the development of a high-powered
artificial “muscle,” or actuator that generates motion andpower, using tire rubber that is powerful but lightweight, withsignificant resistance to impact and vibration. This is an
important first step in the practical application of robots inthese extreme environments.
• As part of its commitment to help create a safer society,especially when natural disasters occur, Bridgestone Tire
Japan has prepared its retail stores to accommodate
people who need a place to rest or are unable to reach theirhomes during earthquakes, flooding and other disasters.
This work was recognized with a Bridgestone Group Award inearly 2019.
Sustainability Report 2018–2019

People | Contributing to a Safer Society | 21

Accessible and Inclusive Education“Bridgestone Indonesia's LLK training program has had a big
impact on my life, particularly the strong alumni support that
I value today. I've been able to share the knowledge I learned withmy community through technical courses for adults and language
courses for children. Whenever I am asked why I can speak
English and Japanese and understand electricity, I always answer
with a big smile... because I learned it at LLK.”—Edi Prayitno, Section Manager, Bridgestone Indonesia

The Bridgestone Group supports many programs thatare aligned with its goal of helping people develop job
and life skills that, in turn, strengthen communities.
In 1981, Bridgestone was one of the first companies inIndonesia to respond to the government’s request to address
the country’s skilled manpower shortage with the creation of
the Loka Latihan Keterampilan (LLK) vocational training
program operated by the Company at its Bekasi manufacturing
facility. Now in its 37th year, Bridgestone Indonesia accepts 48
students every two years for the residential program focusing on
mechanical and electrical skills. To date, more than 50 percentof the program’s 754 graduates have chosen to build theircareers at the Bridgestone Group.
In the U.S., the Bridgestone Group is reducing the cycle ofpoverty by providing work skills that are in high demand.
The Group is helping to educate high school students about
automotive service careers in partnership with Metro Nashville
Public Schools’ Academies of Nashville college and career
preparation program at the Maplewood High School Automotive
Training Center in Nashville, Tennessee, with a near-replica
operating Firestone Complete Auto Care store and training
curriculum. Since 2015, 70 students have graduated, 33 ofthese former students are working for the Bridgestone Groupand one has gone on to a management trainee program at
Bridgestone. Ten more work in the automotive or transportationindustries. In October 2018, a similar classroom and automotive
service center was created at the Akron, Ohio, East Community
Learning Center, in partnership with Akron Public Schools andthe United Way of Summit County.
Sustainability Report 2018–2019

People | Accessible and Inclusive Education | 22

Accessible and Inclusive Education
To increase financial independence for women in
Pune, Maharashtra, India, Bridgestone India partneredwith the Federation of Indian Chamber of Commerce& Industry Ladies Organization in 2018 to provide
training for women to start their own businesses andbecome nurses or delivery personnel.
The Group and its employees also recognize the importanceof introducing young people to new opportunities that expand
their horizons. The Bridgestone Group supports a numberof programs that help make this personal exploration possible:• Bridgestone CAP’s Happy Tangram Project in China provides
students in rural areas with otherwise unavailable art,
music and physical education classes. Also, since 2009,
the Company has donated more than 102,000 books andestablished 40 libraries through this project.
• Bridgestone Retail Operations has raised more than JPY
726.0 million/USD 6.6 million6 for Boys and Girls Clubsof America (BGCA) since 2015 through the Driving Great
Futures program. Because research shows that the morechildren attend the Club, the greater their chances foracademic and social success, Bridgestone Retail Operations'financial grants help Clubs with vehicle maintenance and, insome cases, the purchase of new vans to transport children to
and from Clubs. This work was recognized with a BridgestoneGroup Award in early 2019.
• Bridgestone Thailand's U-Camp project led by employees at its
Nong Khae facility provides leadership development skills tostudents at 14 area universities.
• Also in Thailand, Bridgestone employees developed a
distance-learning program and built school libraries for 1,600
underprivileged children at 13 schools in remote areas.
• In Japan, the Bridgestone Group employees visit elementary
schools and teach children about manufacturing and theCompany’s work improving the environment. Through a fun
board game, children experience plant management virtuallyand think about the environment and work.
• Bridgestone France’s retail and manufacturing locations hosted,trained and mentored more than 50 young adults. Students
acquired tire technical skills and became more familiar with theworking environment, increasing their employability.

6

Based on the average exchange rate used in the Bridgestone Group's 2018 Financial Report.

Sustainability Report 2018–2019

People | Accessible and Inclusive Education | 23

Leadership Commitment

Gabriel Asbun
Vice President and Senior Officer,
Bridgestone Corporation
Member of the Board, CEO
and COO, Bridgestone Asia
Pacific Pte. Ltd.

“Asia Pacific is one of the most dynamic regions of the
global economy. However, we are also seeing a wideningof the inequality gap and the rise of environmental issues.
Opportunities for sustainable growth will only benefit everyone
if we also reduce poverty and improve the quality of people’s
lives by practicing strong environmental stewardship. The
Bridgestone Group partners with governments, organizations
and employees to create solutions that enhance human potential
and protect natural resources. As an organization with a deep
Asian heritage, the Group aims to be a positive catalyst inbuilding a sustainable future for the region.”

Sustainability Report 2018–2019

People | Leadership Commitment | 24

Promoting Healthier Communities
The Bridgestone Group has long
believed that a better world canbe built through sports. In 1957,
Bridgestone founder, Shojiro
Ishibashi, donated 21 swimming
pools to schools in Kurume,
Fukuoka, Japan.
Currently Bridgestone Sports manages
18 swimming schools in Japan.
For more than 30 years, with the Bridgestone Group’s ongoingsupport, two of these schools (in Kurume and Saga) haveprovided lessons to more than 10,800 people with disabilities
who otherwise would not be able to enjoy swimming.

Today, the Bridgestone Group values sports as one important
way to promote healthier communities. That’s why it is proud
to support the Olympic and Paralympic Games, as aworldwide partner of both the International Olympic Committee
and the International Paralympic Committee. Multiple tenets of
the Olympic and Paralympic Movements—community service,diversity, environmental stewardship and sustainability—also lie
at the heart of Our Way to Serve.
The Bridgestone Group’s support of the Olympic and Paralympic
Movements influences it in additional ways as well:• In Japan, the Bridgestone x Olympic x Paralympic a GO GO!
is bringing the excitement of the Olympic and Paralympic
Movements to communities across the country through a fun
event with top-level athletes to help everyone from children to
the elderly recognize the fun of playing sports.
• Bridgestone CAP promotes the employment of people
with disabilities across the region. In Thailand, 10 employees
are para-athletes training to compete the Tokyo 2020
Paralympic Games.
• Bridgestone CAP also created an opportunity forchildren from a local South Korean orphanage to see thetorch relay and experience the Olympic Winter Games
PyeongChang 2018.
• Bridgestone EMEA leveraged the Company’s support of the
Olympic and Paralympic Games to encourage employees
to adopt healthier lifestyles and support cancer prevention.
The online platform around the Olympics encouraged
approximately 17,000 employees in the region to reach acommon goal of moving 1 million kilometers in one year.
After just six months, the team reached its goal and, inthe process, raised JPY 21.3 million/USD 193,8006 for 14
nonprofit organizations active in cancer prevention.
• Bridgestone is using the Company’s tire technology andinnovation to support para-athletes in Japan. Employees
created rubber soles for sports prosthesis that make it easier
to run on a variety of surfaces and gloves that help wheelchairathletes more efficiently propel the wheels of the chair.
• In the United States, the company partnered with its Team
Bridgestone athlete ambassadors to support local youth
programs and charitable organizations, including Boys andGirls Club of America, Children’s Healthcare of Atlanta,
and the Scott Hamilton’s Learn-to-Skate Program in Nashville.

6

Based on the average exchange rate used in the Bridgestone Group's 2018 Financial Report.

Sustainability Report 2018–2019

People | Promoting Healthier Communities | 25

Supporting women, indigenous
communities and children
Following are some additional ways the BridgestoneGroup promoted healthier communities in 2018:• International Women’s Day is celebrated globally on March
8. In recognition, Bridgestone India organized 11 breast
cancer and other health screening events for more than
100 women in rural health centers across Khed taluka,
Maharashtra, India. In addition to tests for breast and cervicalcancer, blood pressure and diabetes, women received afree supply of protein, iron and calcium supplements for theiroverall health.
• More than 300 Bridgestone EMEA Technical Center
employees in Rome, Italy supported the Italian Multiple
Sclerosis Society’s (AISM) research and services.
• Imagine a caravan of Bridgestone Group vehicles travelingthe mountainous, difficult terrain of Argentina to bring muchneeded supplies to remote, usually indigenous communities.
That’s exactly what the Bridgestone Solidarity Caravan
has been providing since 2010. Employees collect medicine,
clothing, school and cleaning supplies, kitchen utensils andfurniture and then deliver them during a week-long journey.
Along the way, Caravan members help make improvements toschools and communities such as installing solar panels andpumps for drinking water.
• Bridgestone, in partnership with Ochanomizu University(one of two women’s national universities in Japan) has
launched the Future Starting Point Project to help cultivate
the next generation of female leaders. Women in highschool, undergraduate university and graduate schoolparticipate in a dialogue about future societal needs withstakeholders from business, education and local government.
• Firestone’s Natural Rubber operations in Liberia
co-sponsored a team of medical professionals from Children’s
Surgeries International to provide more than 100 free surgeries
for cleft lips and palates, hernias and a variety of urologicalconditions at the Firestone Medical Center in Duside. This is theseventh such mission since the collaboration began in 2010.

More information on the Bridgestone Group’scommitment to People is available online.

Sustainability Report 2018–2019

People | Promoting Healthier Communities | 26

Priority Area

Environment

Environment

With the social and environmental impact ofclimate change, resource depletion and biodiversity
loss becoming more pronounced, the BridgestoneGroup has established a framework to address thesechallenges within its operations and to contribute—
throughout the lifecycle of its products—toaddressing them within the larger community.
The Bridgestone Group is committed to continually working
toward a sustainable society with integrity and in unity with its
customers, partners, communities and the world.

The Group's long-term environmental vision targeting 2050
and beyond aims to exist in harmony with nature, valuing natural
resources and reducing CO2 emissions.

Long-term
environmental
visionEnvironmental Mission Statement
To help ensure a healthy environment
for current and future generations...

(for 2050 and beyond)We, the Bridgestone group, are committed to continually working toward a sustainable society
with integrity and in unity with our customers, partners, communities and the world around us.

In balancewith nature 7

Therefore, we are focused on three objectives.

In harmony with nature
In harmony
with nature

Value natural
resources

Reduce CO2
emissions

To contribute to biodiversity through To continually improve natural resource
habitat enhancement, and throughconservation through operational
environmental education and research.
improvements and product design.

The Bridgestone group's
environmental mission covers
all aspects of our business.

Operations

To continually reduce emissions ofGreenhouse Gases, including CO2 fromour products complete life cycle.

Value natural resources

Products andServices

Environmental
Communication

TEAMS(Contribution > Footprint)

Towards 100%
sustainable
materials 8

Community
Activities

Contribute to
globally agreed target 9

TEAMS: Total Environmental Advanced Management System
TEAMS unites the group under a progressive management system
to help ensure a healthy environment.

Reduce CO2 emissions(Over 50% reduction of CO2 emissions)“In balance with nature” is our commitment to contribute to biodiversity through habitat enhancement, and through environmental education and research.
The Bridgestone Group defines sustainable materials as materials that 1) come from resources with a guaranteed continual supply, 2) can be used as part of the business over the long term and, 3)
have a low environmental and social impact over the lifecycle from procurement to disposal.
9
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.
7
8

Sustainability Report 2018–2019

Environment | 28

In Harmony with Nature
The Bridgestone Group is working concurrently tominimize the environmental footprint of its business
operations while also enhancing its environmental
contributions.

Minimizing its environmental footprint

The Bridgestone Group has set a target to reduce water
withdrawal by 35 percent by 2020 (per unit from a 2005
baseline)10. In 2018, the Group exceeded its goal, reducing
water withdrawal by 37 percent, reflecting significant
improvements over the prior year.

After almost 20 years of research, and in collaboration with the
Bridgestone Technical Center in Europe, tire manufacturing
facilities operated by Bridgestone in Bilbao and Burgos, Spain;
Bari, Italy; Bethune, France and Poznan, Poland succeededin drastically reducing (by approximately 83 percent
overall) volatile organic compound (VOC) emissions related
to the use of solvent in the production process by reducing
solvent use. In particular, the Burgos plant eliminated all
cement adhesives in the production process, contributing to an
approximately 95 percent reduction in VOC emissions from theuse of solvents since 1998, while enhancing the quality of the
final products.

To achieve these results, the Bridgestone Group reuses/
recycles water at many manufacturing facilities, especiallyoperations where there are serious concerns about water
shortages, such as China and Mexico. It is also using water
resources more efficiently by improving production processes
and using rainwater where possible.

The Bridgestone Group’s environment-related data is verified
by Lloyd's Register Quality Assurance, a third-party institution,
to ensure the accuracy and transparency of this information.

For example:

Target and Actual Figures of Water Withdrawal at
Manufacturing Facilities (per Unit)• When building new tire manufacturing facilities, theBridgestone Group conducts a risk assessment for water
quality and volume to ensure that it takes efficient use of water
resources and wastewater into consideration. It also uses theWorld Business Council for Sustainable Development Global
Water Tool and World Resources Institute (WRI) Aqueduct
to assess water risks at existing facilities and identify
improvement opportunities for each location.

10

Base
year
100
90

28%

80

Index

• At the Izmit, Turkey facility operated by the BridgestoneGroup, employees identified ways to reduce the site’s
dependence on groundwater by recovering, treating andreusing rainwater and waste water. Through these steps—
and an education campaign on the importance of using water
wisely—the facility nearly halved its water withdrawal in 10
years. This work was recognized with a Bridgestone GroupAward in early 2019.

reduction

70

34%

reduction

37%

reduction

60

35%

reduction

Target

50
0

2005

2016

2017

2018

2020

Year

Bridgestone manages water withdrawal by unit of production volume and net sales for each business. A weighted average efficiency of the reduction is used as an index. The water withdrawal does notinclude recycled water from third-parties and rainwater.

Sustainability Report 2018–2019

Environment | In Harmony with Nature | 29

“We are honored that Bridgestone Americas has entrusted The
Nature Conservancy to manage this important forest. It is setting an
example for how corporations can proactively protect the planet incollaboration with the environmental community.”—Terry Cook, State Director, The Nature Conservancy in Tennessee

In addition to minimizing its environmental footprint,
the Bridgestone Group is also preserving andrestoring habitats and conducting environmental
education and research activities around the world
as part of its commitment to operating in harmony
with nature.

Enhancing its contribution

In the U.S., Bridgestone Americas celebrated World
Environment Day on June 5 by donating 2,332 hectares of
the Bridgestone Nature Reserve at Chestnut Mountain to
The Nature Conservancy in Tennessee (TNC). The land isadjacent to more than 6,000 hectares of the Bridgestone/
Firestone Centennial Wilderness Area the Company gifted to
the Tennessee Wildlife Resources Agency in 1998 and 2000.
The donation will protect and enhance habitats for a range
of endangered plant and animal species. As part of the donation,
TNC is completing a forest carbon offset project that will soon
fund the management of the Bridgestone Nature Reserve at
Chestnut Mountain and offset the carbon emissions from theBridgestone Tower headquarters building in downtown Nashville,
Tennessee, U.S. for an estimated 25 years.

To help inspire the next generation’s interest in the naturalenvironment, the Company established the Bridgestone
Environmental Education Classroom and Habitat (BEECH) at
its Warren County facility in Tennessee, U.S. Students in
pre-kindergarten through fifth grade learn about wildlife habitats,water conservation and how to care for the environment.
Since it was founded in 2008, nearly 20,000 students havevisited the BEECH and the program has expanded to four
counties in Tennessee and includes programs for children
who are homeschooled. As of 2008, BEECH is a fully integrated
part of the Warren County School curriculum.

Also in the U.S., as well as in Mexico, 11 of the BridgestoneGroup manufacturing locations are Certified Wildlife Habitats.
The Group works with the Wildlife Habitat Council to help
manage the more than 1,200 hectares in the program to foster
habitat conservation and improve biodiversity.

Sustainability Report 2018–2019

Environment | In Harmony with Nature | 30

In Harmony with Nature“Bridgestone India's commitment to children, their families andthe environment is enabling UNICEF to empower communities tomanage water resources in Maharashtra. With their support, we areproviding communities with the information, training and planningthey need for long-term provision of safe drinking water, while also
meeting agricultural and other needs.”—Richard Beighton, Chief, Resource Mobilization and Partnerships, UNICEF India

Bridgestone also works with local communities to help protect
scarce water resources. In 2018, the Company initiated a threeyear project with UNICEF to improve water conservation anddrinking water in Maharashtra, India’s second most-populated
state. Water scarcity is one of the key challenges affecting
Maharashtra due to long periods of drought that result in crop
failure. Bridgestone India is donating JPY 63.6 million/USD
577,9006 to help ensure that 10 villages have access to a clean,safe water supply.

the Borneo Orangutan Survival Foundation since 2012 to help
protect and reintroduce Bornean orangutans to their natural
habitat. To help do so, the Company has committed to plant
one hectare of forest each year for eight years. The Company
is also sponsoring two orphaned orangutans by paying for theircare and rehabilitation until they can be released back into theirnatural habitat.

Near the Bridgestone Kalimantan Plantation in Indonesia,
there is a neglected state-owned forest that was destroyed byfire and other disasters. In 2012, Bridgestone launched the
W-BRIDGE project to help local residents restore the forest
in partnership with Waseda University, the Japan International
Forestry Promotion and Cooperation Center, Lambung
Mangkurat University and the Tanah Laut Regency Forestry
Department. Local residents are taught improved land and forest
management practices. To date, approximately 70 hectares of
distressed land have been restored to productive, mixed-use
of forest, Hevea production and agriculture.
In Indonesia and Thailand, local Bridgestone Group employees
have planted thousands of mangrove trees to restore mangrove
forests that protect people and the environment in coastal
villages. Bridgestone Indonesia has also been working with

6

Based on the average exchange rate used in the Bridgestone Group's 2018 Financial Report.

Sustainability Report 2018–2019

Environment | In Harmony with Nature | 31

Leadership Commitment

Paolo Ferrari
Executive Vice President
and Executive Officer,
Bridgestone Corporation
Member of the Board, CEO
and President of Bridgestone
Europe NV/SA“The Bridgestone Group wants future generations to havethe ability to live in a world where the planet's capacity
to regenerate itself is not at risk. The Group also wants todevelop and bring to market services and products that are
responsibly responding to the needs of society and allowing
it and its employees to thrive. At Bridgestone EMEA, we
integrate sustainability in our strategy, as well as into our
performance management and individual goal setting process
because we believe that serving society is not just worthy initself, but it also leads to profitable business.”

Sustainability Report 2018–2019

Environment | Leadership Commitment | 32

Valuing Natural Resources
Around the world, the BridgestoneGroup is working to conserve
natural resources throughoperational improvements andproduct design. Its long-term
vision is to use 100 percent
sustainable materials by 2050
and beyond.
8

The Group is making progress on this journeyby reducing raw material consumption, recycling
resources and using them effectively both inside
the company and also in collaboration with othercompanies, and expanding and diversifying
renewable resources.

Reducing raw material consumption

Given the increase in demand accompanying population growthand people’s desires for more convenient lifestyles, there areconcerns that, if nothing changes, the growth in demand for
raw materials will exceed the earth’s capacity. To avoid thiswill require constructing systems to decouple the environmental
impacts caused by growing demand. To help assist thisdecoupling, the Bridgestone Group is taking steps toimprove its resource productivity. The Group promotes new
business models and the development of technology for reducing
the volume of raw materials used to make each product.
One such example is the Group’s work developing
high-strength rubber that received the Environmental
Achievement of the Year recognition in March 2019 at the Tire
Technology International Awards. The durability and abrasion
resistance of this next-generation material exceed that of natural
rubber, which will enable the creation of tires that achieve therequired levels of performance while using less materials.

Long-Term Vision Toward 100 Percent Sustainable Materials

8

The Bridgestone Group defines sustainable materials as materials that 1) come from resources with a guaranteed continual supply, 2) can be used as part of the business over the long term and,3) have a low environmental and social impact over the lifecycle from procurement to disposal.

Sustainability Report 2018–2019

Environment | Valuing Natural Resources | 33

In the circular economy that is rapidly gaining traction, society works
collaboratively to keep resources in use as long as possible before
recovering materials and regenerating them into new products.
Recycling Resources

Like many others, the Bridgestone Group envisions arobust circular economy and is assessing the role ofits products in this new paradigm.
The Group recently participated in the U.S. with the Ellen
MacArthur Foundation and CoreCentric in a dialogue andsubsequent white paper around the impact of remanufactured/
refurbished product sales, and in Europe on the#BetterThanNew project to promote tire retreading. Bridgestone
EMEA is also working with the R2Pi consortium to explore
circular economy opportunities within its business model.
It often surprises people to learn that end-of-life tires arerecycled and recovered at higher rates than aluminum
cans, glass, cardboard and paper11. Beneficial uses include
construction materials, landscaping mulch, floor mats andeven as components in new tires, and utilized as alternativefuel. Around the world, the Bridgestone Group is developing
innovative approaches to further their reuse, including:• Bridgestone Costa Rica’s B-Happy Eco-Parks program
uses end-of-life tires to create playgrounds in parks andeducation centers. So far, playgrounds have been created in
El Salvador, Guatemala and Panama.
• In the U.S., Bridgestone Americas has committed to thebeneficial reuse of the end-of-life tires removed from vehicles
at Company-owned retail stores. In addition, through theTires4ward program, Bridgestone Americas offers free
end-of-life tire collection and recycling during communityorganized clean-up events at rivers, lakes and otherpublic waterways. Our goal is that all used tires returned toCompany-owned retail stores get a beneficial next use.
• Through a joint research project with the Industrial
Transformation Research Program in Australia, Bridgestone
Australia is investigating the use of used tires for various
rail track components, including ballast and subgrade for
improving the durability of ballasted rail tracks.

Using recycled materials in its products also helps achieve theGroup’s goal of using 100 percent sustainable materials by 2050
and beyond8.
• Not only are Firestone Building Products metal roofing
systems 100 percent recyclable at end-of-life, theyalso include significant amounts of recycled aluminum, copper,
steel and zinc.
• The Bridgestone Group uses micronized rubber powder
as a raw material in producing new, high-performancetires, tires for agriculture and off-road applications, andpre-cured tread for tire retread.

Expanding and diversifying
renewable resources

One natural resource obviously critical to the BridgestoneGroup, and one the world recognizes as potentially stressedin future years, is natural rubber. The company continues toactively participate in addressing this challenge in a numberof ways. One example is the work Bridgestone Americas
is doing with the U.S. Department of Agriculture (USDA)
National Institute for Food and Agriculture to develop a
domestic source of natural rubber from guayule. Guayule isa drought and heat-tolerant crop that produces natural rubber
almost identical to that harvested from Hevea rubber trees.
Bridgestone Americas was awarded a highly competitive USDA
grant to continue this work with researchers from The Universityof Arizona, Colorado School of Mines, Colorado State University,
New Mexico State University and the USDA Agriculture
Research Service.
End-Of-Life Tires (ELT) Global Recovery Rates11
ELT Categories

2%

Civil Engineering and Backfilling

20%

Energy Recovery
Material Recovery

31%

Other (Not recovered—landfilled, stockpiled or unknown)

47%
8
11

The Bridgestone Group defines sustainable materials as materials that 1) come from resources with a guaranteed continual supply, 2) can be used as part of the business over the long term and,3) have a low environmental and social impact over the lifecycle from procurement to disposal.
Industry-wide data based on the World Business Council for Sustainable Development https://docs.wbcsd.org/2018/02/ELT_Fact_Sheet.pdf.

Sustainability Report 2018–2019

Environment | Valuing Natural Resources | 34

Reducing CO2 Emissions
As a responsible corporate citizen, the Bridgestone Group is paying
close attention to science-based CO2 emission-reduction goals andongoing and projected impacts of climate change.

Combining the CO2 reductions from operations and products'
in-use, the Group is 95 percent closer to its 100 percent reduction
goal, in comparison with the 2005 baseline12.

To achieve the 2020 primary mid-term milestone, theBridgestone Group established two CO2 reductionrelated sub targets:• By 2020, reduce CO2 emissions per net sales from operations
and products’ after-use13 by 35 percent (from a 2005 baseline).
In 2018, the Group achieved a 33 percent reduction.
• Also by 2020, reduce tire rolling resistance by 25 percent(from a 2005 baseline). In 2018, the Group achieved a 21
percent reduction.

Difference in CO2 Emissions from Operations and Products’
After-use and Contribution to CO2 reduction at the Usage Stage12
Base
year

Thousand tonnes

15,00010,00068%

reduction

5,000

87%

reduction

95%

Target0 below

reduction

0
2005

2016

2017

2018

2020

Year

CO2 Emissions Per Sales from Operations
and Products’ After-use other than Use14
600

Base
year

29%

500
t/100 million yen

The Group’s long-term (2050 and beyond) vision is to contributeto the globally agreed target to reduce CO2 emissions. In
the shorter term, the Group is focusing on reducing its CO2
emissions from direct operations and, more impactfully, indirectemissions from its products in-use, which offers the greatest
overall CO2 reduction potential—reducing fuel combustion
emissions when vehicles are moving. To move toward its 2050
vision, the Bridgestone Group has established a primary 2020
mid-term milestone and target: reduced emissions footprint
from customers’ use of Bridgestone tires will exceed theGroup’s emissions from raw material procurement, productmanufacturing, distribution and its products' after-use.

reduction

400

33%

reduction

35%

reduction

reduction

35%

2017

2018

2020

Target

300
200
100
0

2005

2016

Year
Raw materials

Manufacturing

Distribution

After-use

Tire-Rolling Resistance Coefficient
100

Base
year

15%

Percentage

90

reduction

19%

reduction

80

21%

reduction

25%

reduction

Target

70
60
0

2005

2016

2017

2018

2020

Year
12
13
14

Calculated based on “Tyre LCCO2 Calculation Guidelines Ver. 2.0” (The Japan Automobile Tyre Manufacturers Association, Inc., April 2012).
Lifecycle stages other than use include raw material procurement, manufacturing, distribution and after-use.
Includes CO2 emissions reduction activities and exchange rate fluctuations of sales.

Sustainability Report 2018–2019

Environment | Reducing CO2 Emissions | 35

The Bridgestone Group has a number of Group-wide
and region-specific initiatives underway to reduce
CO2 emissions. For example:• Three Bridgestone Group tire manufacturing facilities(Bilbao, Puente San Miguel and Burgos) and one tire cordfacility (Usansolo), all in Spain, sourced 100 percent of
their electricity from renewable sources in 2018.
• To reduce CO2 emissions through its tires’ lifecycle, theBridgestone Group utilizes CDP to engage suppliers on
climate change. In 2018, the Group engaged suppliers that
account for 87.6 percent based on CO2 emissions of procured
tire raw materials through the CDP Supply Chain Program.

ISO 14001 certification demonstrates
environmental commitment

The Bridgestone Group requires all manufacturinglocations with 50 employees or more (156 locations)to achieve ISO 14001 environmental management
certification. Achieving this certification shows that
operations are continuously working to minimize theirimpacts on the environment and comply with applicable
environmental laws and regulations. At the end of
2018, 154 manufacturing locations (98.7%) were ISO
14001 certified.

ISO 14001 Certified 1, 4

Approximately 71 percent of requested suppliers
responded (CDP Climate questionnaire response rate was
53 percent) and 28 percent of responded suppliers received
at least a B- rating (Management level) from CDP. The
Bridgestone Group also encourages suppliers to reduce
their CO2 emissions and self-report their environmental
data through CDP.
The Bridgestone Group's CO2 emissions are verified by
Lloyd's Register Quality Assurance, a third-party institution,
to ensure the accuracy and transparency of this information.

More information on the Bridgestone Group’scommitment to Environment is available online.

Bridgestone Tower achieves LEED certification

In 2018, the Bridgestone Americas headquarters tower
in downtown Nashville, Tennessee, U.S. achieved
Leadership in Energy and Environmental Design (LEED®)Gold certification from the U.S. Green Building Council.
Many products used in the 48,588 square-meter, 31-story
building helped secure the LEED certification. The roof
system was manufactured by Firestone Building Products.
Having all employees in one building also facilitates new
ways of working, encourages collaboration and createsa more inclusive culture.This work was recognized with a
Bridgestone Group Award in early 2019.

98.7%

1		
4

As of December 31, 2018.
156 sites are targeted for ISO 14001 certification/154 sites are certified (98.7%).

Sustainability Report 2018–2019

Environment | Reducing CO2 Emissions | 36

Management
Fundamentals
Compliance, Fair Competition
Mission: Ensure excellence through complianceand integrity
We build trust with all stakeholders by ensuringthat ethical decision-making guides responsible
business practices across our operations.
In recent years, the Bridgestone Group’s long-standing regional
compliance programs were united under a common global
framework to promote a true culture of compliance, consistent
with the company’s Mission of “Serving Society with Superior
Quality.” The global ethics and compliance program strikes abalance between global consistency and the flexibility needed toeffectively address localized risks.
The launch of the global Code of Conduct in 2018 was asignificant advancement of this framework. The Code gives
employees, suppliers and others worldwide guidance forhandling a wide range of ethical issues, including anticorruption, competition/antitrust, conflicts of interest, andcorporate charitable and political donations.
Compliance is the responsibility of every Bridgestone Group
employee. Accordingly, education and employee engagement
are a key focus. These efforts start at the top, with businessleaders regularly speaking about the importance of ethics andcompliance and playing active roles in the company’s
compliance training and awareness programs. An extensive
training program, including both e-learning and live trainings,
is strategically deployed in each region. In 2018, these efforts
were enhanced by extensive regional communication efforts,
including a “Speak Up” hotline campaign in Bridgestone
CAP and EMEA and worldwide promotion of the new Codeof Conduct.

Sustainability Report 2018–2019

The Bridgestone Group emphasizes that doing the right thing
includes speaking up when something is wrong. The BridgeLine,a web-based reporting system and phone hotline, is available
to Group employees and others to confidentially and, wherelegally permissible, anonymously report any legal or complianceconcerns without fear of retaliation. In 2018, for the key areasof corruption and antitrust/competition, there were no significant
confirmed reports.
The Bridgestone Group’s commitment to compliance extends
to third parties with which it does business. Contractors andsuppliers are subject to the expectations in the Code. The
Group’s suppliers are also subject to the requirements of its
Global Sustainable Procurement Policy, which was establishedin 2018. The Group additionally conducts due diligencescreening for certain high-risk arrangements.

More information on the Bridgestone Group’s global
ethics and compliance program is available online.

CODE OF CONDUCTManagement Fundamentals | Compliance, Fair Competition | 37

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

Identify
Risk

In 2018, the Bridgestone Group focused on three
aspects of risk management important to its efforts
to be a truly global company, including:
Emergency action reporting requirements/procedures
Bridgestone developed and issued new guidelines to clarify
the types of incidents that should be reported to headquarters’leadership versus managed by regional leadership. In doingso, it identified five incident levels, along with criteria for each,to ensure consistent Group-wide reporting. Following thedevelopment of this approach, Bridgestone created a reporting
template and trained appropriate individuals across the Group.
Integrated crisis management and business
continuity support
While the Bridgestone Group has four operating regions, thelocation of facilities within these strategic business units don’t
always align with their geographic descriptions. For example,
Bridgestone Sports based in Japan makes golf balls in Atlanta,
Georgia, U.S. In 2018, the Bridgestone Group initiated a project
to create a common framework for managing issues andcrises across the enterprise so all businesses are aligned on
how to work together collectively to ensure globally consistent
responses and sustain business continuity when situations arise.

Review
Controls

RiskManagement
Process

AssessRisk

Control
Risk

Annual global risk-identification process
Ten years ago, the Bridgestone Group initiated an annual,Company-wide process to identify potential business risksfacing each Strategic Business Unit and the overall organization.
The Bridgestone Group is now streamlining the process to makethe information more meaningful and actionable, while alsobuilding in broader participation across the organization. In
doing so, the goal is a to gain a more complete understandingof potential risks across the Group, be better equipped to trackand measure the impact of mitigation efforts, and share bestpractices about effective mitigation approaches.

Additional information on this approach to
Risk Management is available in the Company’s
Annual Report and online.

Sustainability Report 2018–2019

Management Fundamentals | Business Continuity (BCP), Risk Management | 38

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 for diversity andfundamental human rights.
In early 2018, the Bridgestone Group introduced its Global
Human Rights Policy. The policy addresses the standards andbehaviors that all the Bridgestone Group employees around theglobe can and should expect from the Company, their managers
and fellow employees. It outlines respect for diversity andinclusion, prohibition of discrimination and harassment, focus
on workplace safety and health, commitment to responsible labor
practices, and protection of free speech and association.
Respect for diversity and inclusion (D&I) is an importantelement of the Bridgestone Group’s Global Human Rights
Policy. It is especially important “in a global enterpriseconsisting of diverse talent with varied backgrounds,
cultures and experiences,” according to the Global
CEO Masaaki Tsuya. This commitment comes to life in
multiple ways across the Bridgestone Group:• In the U.S., Employee Resource Groups (ERGs) create
support networks for people with shared experiences,including African-Americans, LGBTQ15 and allies, veterans,
women and young professionals.

• The Group respects and encourages flexible work styles
in numerous locations, including Japan and EMEA, andoffers nursery facilities, various forms of paid maternity andpaternity leave, as well as family care and volunteer leavein many locations.
• Bridgestone earned the highest rank of gold in Japan’s annual
PRIDE Index of LGBT-friendly workplaces. And, for the sixth
consecutive year, it was named a Nadeshiko Brand in Japanfor encouraging women’s success in the workplace.
• Bridgestone Spain was recognized as a certified
Family Responsible Company (efr certification) by
Fundación Másfamilia.
As part of its due diligence, the Bridgestone Group assesses
the human rights and labor practices of potential new operations
and projects.
Bridgestone regions also conduct regular surveys to understandemployees’ engagement and satisfaction with the Company.
Bridgestone's human resource-related data is verified by
Lloyd's Register Quality Assurance, a third-party institution,
to ensure the accuracy and transparency of this information.
This information will be available online from the middle ofJune 2019.

More information on the Bridgestone Group’s Human
Rights and Labor Practices is available online.

• Bridgestone Americas formed a D&I Committee in 2018
to advance these important topics and has sponsored thePRIDE Festival in Nashville that supports the LGBTQ rights
movement for more than 10 years.

15

According to the GLAAD Media Guide, LGBTQ is a widely used acronym that stands for lesbian, gay, bi-sexual, transgender and queer.

Sustainability Report 2018–2019

Management Fundamentals | Human Rights, Labor Practices | 39

Safety, Industrial Hygiene
Mission: Safety First, Always
At Bridgestone, we make safety a businessvalue. Creating a safe working place for all iseveryone’s responsibility.
The Bridgestone Group introduces all employees to its
fundamental safety activities and expects them to regularly
conduct these activities in their workplaces. As a reminder of its
aim to achieve perfect safety, the Group commitment is posted
in all locations. The Group also introduced activity guidelines
for contractors and visitors globally, to ensure their safety on
its premises.

Sustainability Report 2018–2019

The Bridgestone Group's Global Safety and Industrial Hygiene
Working Group recently established the structure for its global
safety management system developed in reference to ISO
45001, and is now generating the standards. In 2018, six new
global safety standards were developed to be integrated into local
standards in 2019. These included: disaster prevention, working
at height, global injury reporting, lock out/tag out equipment, risk
assessment standards, and mobile equipment safety. Additionally,
ongoing training is conducted across the organization to meetboth its exacting standards and all local regulatory requirements
wherever the Bridgestone Group operates.

Management Fundamentals | Safety, Industrial Hygiene | 40

Safety, Industrial Hygiene
Safety Performance

In 2018, across the Bridgestone Group, there were 23 serious
injuries16 and no fatalities among employees. Unfortunately,
the Group experienced one contractor fatality. The Groupfully participated in the investigation with local authorities andcontinues to work toward its goal of perfect safety.
The Group’s 2018 performance reflected a 20 percent reduction in
the number of employee serious injuries and fatalities from 201717.
Bridgestone Corporation (operations in Japan only) also
tracks the frequency18 and severity rates19 of work-related losttime injuries. In 2018, these indicators were below the averageof both the Japanese manufacturing industry and rubber
product manufacturing.
The Bridgestone Group began collecting and reporting this typeof information on a global basis in 2019.
Bridgestone’s safety-related data is verified by Lloyd's Register
Quality Assurance, a third-party institution, to ensure the accuracy
and transparency of this information.

Incident prevention

Fire prevention is also a key safety value at the BridgestoneGroup. At the Global Disaster Prevention Center in Tokyo, theGroup conducts hands-on training to help employees prevent
fires and understand early detection techniques. It also conducts
training on lessons learned from previous earthquakes.

Frequency Rate
1.50
1.20
1.00

1.06

1.06

0.78

0.76

0.50

0.0

0.25

2014

1.15

1.02

0.71

0.65

0.81

0.37
0.13
2015

Japanese manufacturing industry

2016

0.22

0.25

2017

2018

Rubber product manufacturing

Bridgestone

Severity Rate
0.13
0.100

0.10

0.09
0.08

0.075
0.06
0.050

0.06

0.07

0.06
0.03

0.025

0.000

0.0037
2014

0.00632015

Japanese manufacturing industry

0.04

0.01170.0118 20

2016

2017

Rubber product manufacturing0.0087 21
2018

Bridgestone

In Bridgestone EMEA, the demographics of the workplace
are changing rapidly. Today, it has a far more multi-generational
workforce. To be sure everyone is engaged and trained on
its health and safety requirements, Bridgestone EMEA
introduced gamification, new media and digital training thathas been positively received. This work was recognized with a
Bridgestone Group Award in early 2019.

More information on the Bridgestone Group’s Safety
and Industrial Hygiene initiatives is available online.

The Bridgestone Group defines serious injuries as amputation (except some first joints of finger or toe), complete loss of vision, fracture (excluding finger, toe, foot, hand or infracture) and hospitalizationof more than one month.
In 2018, the Group reported no fatalities and 23 serious injuries among employees at 4,610 production and logistics sites, and retail shops. Across the entire group, there were 28 serious injuries andone fatality in 2017.
18
Frequency rate = (number of lost-time injuries/total working hours) x 1,000,000.
19
Severity rate = (total number of working days lost/total number of working hours) x 1,000.
20This number has been updated after the Labor Office finally judged the disability grade of a person injured in 2017.
21
Bridgestone will update this number after the Labor Office confirms the working days lost of persons injured in 2018.
16
17

Sustainability Report 2018–2019

Management Fundamentals | Safety, Industrial Hygiene | 41

Procurement
Mission: Create value to society through sustainableprocurement practices
We are committed to creating value and continuallyworking toward a sustainable society to realize
long-term environmental, social and economic
benefits by incorporating the following into the entire
supply chain:••••Transparency;
Compliance;
Quality, cost, delivery (QCD) and innovation; and,
Sustainable procurement practices.

In early 2018, the Bridgestone Group introduced its Global
Sustainable Procurement Policy to help identify and evaluate
qualified suppliers, promote best practices, and serve as acommunication and improvement tool for the industry. Working
with suppliers, the Group’s goal is to contribute to faster
realization of a sustainable supply chain for the environmentand communities around the world.
Since the introduction of the policy, intensive new efforts
have been underway in all regions globally. As of May 2019,
acknowledgment of the policy has been completed by 98
percent (~2,400) of the Group’s Tier 1 major suppliers andthe majority are in the process of completing third-party
assessments with EcoVadis. As of May 14, 2019, 424(41 percent) of the Group’s Tier 1 tire material suppliers havecompleted the full assessment. Additionally, the Group has
trained hundreds of procurement, legal, technical andcustomer-facing teams, among others across the enterprise.

The Bridgestone Group’s work with EcoVadis aligns withbroader, industry-wide initiatives. In 2019, it will focus onreviewing assessment findings, addressing immediate concernsand developing its go-forward strategy toward industry bestpractices for supply chain sustainability and transparency.

“The Bridgestone Group is great example
of an organization that is leading insustainability by increasing their focus
on responsible procurement practices.
Proactive collaboration with suppliersis the best way to improve performanceacross all corporate social responsibility
indicators and drive positive change inthe communities from which they source.
This partnership will help the Group build
on its existing efforts and make a real,
lasting impact.”—Pierre-Francois Thaler, Co-CEO, EcoVadis

For several years, the Bridgestone Group has held annual
conferences in multiple locations for natural rubber suppliers
and recently shared its Global Sustainable Procurement Policy.
Representatives from the Group also visit approved natural
rubber factories and hold face-to-face meetings once a year to
support quality continuous improvement and enhance traceability
and sustainability initiatives.

Sustainability Report 2018–2019

Management Fundamentals | Procurement | 42

Procurement“2018 was a stand-out year for the BridgestoneGroup’s engagement with WBCSD. Through ourTire Industry Project, the Group’s leadership indeveloping and launching the multi-stakeholder
Global Platform for Sustainable Natural Rubber(GPSNR) was commendable. The GPSNR is a timely
venture, building on WBCSD's core mission, that byworking together we can accelerate the transition toa sustainable world. Importantly, it is the dedicationof WBCSD members like the Bridgestone Group thatdrives high-impact business solutions to address
the most challenging sustainability issues.”

The Bridgestone Group’s commitment to diversity andinclusion also impacts its procurement practices. For example,
Bridgestone Americas aims to purchase from a supplier baserepresentative of its employees, consumers, customers andcommunities. It is actively engaged in increasing work withdiverse suppliers including aboriginal people, disabled, ethnic
minorities, LGBTQ15 communities, veterans and women.

More information on the Bridgestone Group’s
Procurement practices is available online.

—Peter Bakker, President and CEO, World BusinessCouncil for Sustainable Development
Partnerships

Although the Bridgestone Group’s commitments are significant,it cannot address supply chain improvements alone. That is why
it is working collaboratively with 10 other leading tire companies
that represent 65 percent of the world’s tire manufacturing
capacity through the global Tire Industry Project (TIP) operated
under the World Business Council for Sustainable Development.
TIP members are using a scientific approach to continue toimprove the sustainability efforts of the industry. They are alsobuilding on the existing body of knowledge to address the lifecycle impact of tires.
Together with other stakeholders, TIP members recently launched
the Global Platform for Sustainable Natural Rubber (GPSNR) to
transform the natural rubber supply chain for the better. Throughthe GPSNR, TIP companies, including Bridgestone and otherstakeholder members, will work to harmonize standards to improve
respect for human rights, prevent land-grabbing and deforestation,
protect biodiversity and water resources, improve yields andincrease supply chain transparency and traceability.
Even with these partnerships, it is important to realize thatthe majority of natural rubber production in the world isconducted by smallholder rubber farmers in Southeast Asia.
The Bridgestone Group uses large volumes of natural rubber,
but unfortunately, productivity of the rubber trees raised by thesefarmers is often low and the quality of natural rubber produced
varies. To help smallholder farmers improve the quality of theiroperations, the Bridgestone Group provides Hevea rubber tree
seedlings and conducts technical training in key producing
countries using the same productivity-improvement techniques
the Group developed for its own rubber farms.

Sustainability Report 2018–2019

Management Fundamentals | Procurement | 43

Quality and Customer Value
Mission: Creating customer value and trust
To create a global framework in collaboration with all
related Bridgestone Group entities and stakeholders
to proactively identify, prioritize and address
customer quality issues in keeping with the intentionsof our founder to “Serve Society with Superior
Quality.”
Fifty years ago, when Bridgestone earned the Deming Prize
for Total Quality Management (TQM), its quality journey truly
began. Since that time, society and the Company have changed
a great deal. But the Bridgestone Group has never wavered inits commitment to continuous improvement. In 2015, the Quality
Mission Statement—Creating Customer Value & Trust—was
established and translated into 20 languages and enhanced
across the enterprise. As a reminder for employees, the Group’scommitment is posted in all locations.
Today, quality is not a department at the Bridgestone Group,
it is an outcome of thoughtful planning and execution; it is abusiness principle, not only a product principle. This is why
the Group’s cross-functional Quality Management System
Task Force's work overseeing the Global TQM22 Culture ofContinuous Improvement, including the “QMK” 23 approach toproblem solving, was recognized with a Bridgestone GroupAward in 2019.
Each year since 2010, the Group has held an annual
Bridgestone Group Global TQM Conference. The meeting helps
cultivate quality awareness and raise the level of TQM activities
across the organization by sharing best practices. More than
325 employees from around the world attended the 2018conference where 16 projects selected from more than 100
qualifying events were showcased.

More information on the Bridgestone Group’scommitment to Quality and Customer Value isavailable online.

22
23

TQM is an acronym for total quality management. Bridgestone's TQM conferences serve as an opportunity for sharing information about superior workplace improvement activities in order to raiseorganization-wide quality awareness and enhance future TQM activities. In 2010, the Bridgestone Group began holding global-scale TQM conferences.
QMK is an acronym that combines quality control and mondai kaiketsu (problem solving) to encourage problem solving through quality control.

Sustainability Report 2018–2019

Management Fundamentals | Quality and Customer Value | 44

Leadership Commitment

Shuichi Ishibashi
Vice Chair and Representative
Executive Officer,
Bridgestone Corporation
Responsible for GBS(Global Business Support)
Concurrently responsible forTechnology and Quality Management“As the Bridgestone Group transitioned 50 years ago to
Chapter 2 in its history—modernizing its management
structure and governance—it also established its Mission,“Serving Society with Superior Quality.” This commitment
to quality is based on the belief that only a company that
fundamentally operates with quality principles can create
quality products and services. This requires the Group to
strive for superior quality at all levels, including the qualityof its management. This and all aspects of quality areincluded in the Management Fundamentals of Our Way toServe. All members of the Bridgestone Group work together
across its value chain to create common value for society
and customers.”

Sustainability Report 2018–2019

Management Fundamentals | Leadership Commitment | 45

Stakeholder Engagement
The Bridgestone Group prioritizes engagement with stakeholders as it strives to understand their perspectives and to share its point-ofview as well. This information helps inform the Group’s business activities as it continues to sustainably grow its business.

Stakeholder Group

The Bridgestone Group Responsibilities

Communication Channels• Developing appealing products/services• Providing timely response and support• Providing appropriate information• Effectively managing customer information• Responses to Customer Communication Center inquiries• Analysis, database compilation and internal utilization of customer input• Bridgestone TODAY Rubber and tire museum• Websites and social media• Daily sales and service activities(retail stores, dealer channels, online commerce)• Customer satisfaction survey• Auto shows• Providing appropriate and timely information• Maximizing corporate value• Annual Shareholders’ Meeting• Corporate Governance Code Report• Corporate Governance Report• Financial results review meetings• Investor relations website• Reports based on International Integrated Reporting Framework• Individual meetings with investors

Business Partners• Ensuring fair and impartial transactions• Communicating Sustainable
Procurement Policy• Daily procurement activities• Procurement policy explanatory forums/Sustainability seminars• Development of Sustainable Procurement and Global Human
Rights policies• Supplier awards• Discussions with management (distributor meetings)

Employees• Respecting human rights• Promoting diversity and inclusion, including diverse
working styles• Developing and utilizing human resources• Promoting occupational health and safety,
and health and productivity management• Facilitating mutual understanding between
management and labor• Bridgestone Code of Conduct and Global Human Rights Policy• Employee satisfaction surveys• Personnel evaluation systems and career development consultation• In-house open job application systems• Meetings between labor and management• In-house newsletters and intranet• Employee meetings and trainings• Bridgestone Group Awards and other reward systems• Internal events related to the Olympic and Paralympic Games• Contributing to local communities• Preserving local environments• Supporting activities in locations with
the Bridgestone Group operating sites• Donations and social contributions• Facility tours• Environmental and safety education activities• Sponsorship and aid for local events• Olympic and Paralympic sponsorships• Disaster relief support• Dialogue and collaborations with NGOs

• Contributing to the development of a safeand reliable mobile society• Supporting education activities• Participating in industry economic impact
studies and supply chain assessments• Trade association memberships, committees and conferences• Dialogue and collaborations with economic and industry organizations• Engagement with government officials• Participation in the Tire Industry Project and the Global Platform for
Sustainable Natural Rubber operated under the World Business Council
for Sustainable Development• Interaction and exchanges of opinion with municipal government agencies• Communication, coordination, and support of industry-governmentacademia partnerships

Customers

Shareholders And
Investors

Local Communities,
NGOs

Government
Agencies, Industry
Organizations
And Education
Institutions

Sustainability Report 2018–2019

Stakeholder Engagement | 46

Bridgestone Group Awards 2019

The Bridgestone Group Awards
recognize innovation and continuous
improvement toward the management
goal of being a truly global company
and “Dan-Totsu” in all aspects of
its business.

PeopleAll Bridgestone Group organizations and employees are
eligible for the Awards, which represent the highest level ofrecognition within the organization. Based on the Group's
CSR commitment, Our Way to Serve, the awards include
five categories: Achievement, Mobility, People, Environment
and Management Fundamentals. The 2019 BridgestoneGroup Awards winners are listed below and included within
this Sustainability Report.

PT Bridgestone Tire Indonesia
Bridgestone Indonesia rescue team for community (see page 21)

Achievement

Bridgestone Americas, Inc.
Shaping tomorrow: New Bridgestone Americas’ headquarters(see page 36)

Mobility

Bridgestone Corporation, Bridgestone BRM Co., Ltd.
“Precision docking” tire and curb development for barrier-free(universal design) of advanced rapid transit (see page 15)

22
23

Bridgestone Retail Operations, LLC
Driving great futures: Transporting more youth safely toout-of-school programming (see page 23)
Bridgestone Tire Japan Co., Ltd., Bridgestone
Corporation, Bridgestone Logistics Co., Ltd.,
Bridgestone Retail Japan Co., Ltd.
Improvement of the support system in disasters (see page 21)

Environment

Brisa Bridgestone Sabanci Lastik Sanayi ve Ticaret A.S.
Reduction of ground water use in Izmit Plant (see page 29)

Management Fundamentals

Bridgestone Europe NV/SA
Safety transformation journey: new approaches to engage andtrain our teammates (see page 41)
Bridgestone Corporation, Bridgestone Americas, Inc.,
Bridgestone Europe NV/SA, Bridgestone Asia Pacific Pte. Ltd.,"Global TQM22 Culture of Continuous Improvement" together
with "QMK23 Foundation" (see page 44)
Bridgestone Corporation, Bridgestone Americas, Inc.,
Bridgestone Europe NV/SA, Bridgestone Asia PacificPte. Ltd., Bridgestone Singapore Pte. Ltd.
The launch and implementation of two key global policies:
Global Sustainable Procurement Policy and Global Human
Rights Policy; and the Bridgestone Code of Conduct(see page 37, 39, 42)

TQM is an acronym for total quality management. Bridgestone's TQM conferences serve as an opportunity for sharing information about superior workplace improvement activities in order to raiseorganization-wide quality awareness and enhance future TQM activities. In 2010, the Bridgestone Group began holding global-scale TQM conferences.
QMK is an acronym that combines quality control and mondai kaiketsu (problem solving) to encourage problem solving through quality control.

Sustainability Report 2018–2019

Bridgestone Group Awards 2019 | 47

ESG Data
See the Bridgestone Group’s GRI Index online for complete information.
Data items in bold are those for which assurance is provided.

Management-related Data
Data item

FY2015FY2016FY2017FY2018GRI

Bridgestone Group sales1

JPY3,790 billion/
USD 31,425 million

JPY3,337 billion/
USD 28,646 million

JPY3,643 billion/
USD 32,242 million

JPY3,650 billion/
USD 32,883 million

102-7

Rubber production volume1,790,000 tonnes

1,800,000 tonnes

1,880,000 tonnes

1,860,000 tonnes

102-7

144,303

143,616

142,669

143,509

102-7

172

169

164

163

102-7

Number of employees
Number of manufacturing facilities212

Based on the average exchange rate used in the Bridgestone Group’s 2018 Financial Report.
Number of facilities as of April 1 each year. All other data reported as of December 31 each year.

Environment-related Data3
Data item

FY2015FY2016FY2017FY2018

GRI

Amount of raw materials used

4,811 thousand tonnes

4,795 thousand tonnes

5,039 thousand tonnes

5,223 thousand tonnes

301-1

Resource productivity4

JPY 788 thousand/tonnes(USD 6.53 thousand/tonnes)

JPY 696 thousand/tonnes(USD 5.97 thousand /tonnes)

JPY 723 thousand/tonnes(USD 6.40 thousand/tonnes)

JPY 699 thousand/tonnes(USD 6.30 thousand/tonnes)

301-1

Amount of recycled rubber

16,066 tonnes

16,356 tonnes

20,369 tonnes

21,155 tonnes

301-2

Reclaimed products rate5

-

-

-

66%

301-3

45,212 thousand GJ

44,860 thousand GJ

45,756 thousand GJ

46,358 thousand GJ

302-1

26,694 thousand GJ

26,416 thousand GJ

26,932 thousand GJ

27,305 thousand GJ

302-1

Energy consumption(purchased electricity)

4,649 thousand MWh

4,650 thousand MWh

4,802 thousand MWh

4,929 thousand MWh

302-1

Energy consumption(purchased steam)

1,864 thousand GJ

1,797 thousand GJ

1,630 thousand GJ

1,429 thousand GJ

302-1

Energy consumption per unit of sales1

1,193 GJ/JPY100 million(1,439 GJ/USD million)

1,344 GJ/JPY100 million(1,566 GJ/USD million)

1,256 GJ/JPY100 million(1,419 GJ/USD million)

1,270 GJ/JPY100 million(1,410 GJ/USD million)

302-3

Reduction volume ofenergy consumption

1,152 thousand GJ

352 thousand GJ-896 thousand GJ-602 thousand GJ

302-4

Energy consumption outsideof the organization

1,460,987 thousand GJ

1,479,404 thousand GJ

1,549,645 thousand GJ

1,488,972 thousand GJ

302-2

Total water withdrawal7

77,445 thousand m3

74,221 thousand m3

71,477 thousand m3

74,039 thousand m3

303-3

Water withdrawal (surface water)

4,943 thousand m

4,702 thousand m

4,797 thousand m

4,782 thousand m

303-3

Materials

EnergyTotal energy consumption
Energy consumption (fuel)6

Water and Effluents

3

3

3

3

Water withdrawal (groundwater)

3

11,402 thousand m

3

11,515 thousand m

3

11,589 thousand m

3

11,256 thousand m

303-3

Water withdrawal(water supply, industrial water)

19,881 thousand m3

19,546 thousand m3

18,664 thousand m3

18,321 thousand m3

303-3

Water withdrawal (seawater)

41,200 thousand m3

38,457 thousand m3

36,426 thousand m3

39,681 thousand m3

Volume of recycled water
Total water discharge

Sustainability Report 2018–2019

3

3

3

303-3
3

480,506 thousand m

454,054 thousand m

424,480 thousand m

389,672 thousand m

303-3

3

3

3

3

303-4

61,744 thousand m

58,677 thousand m

56,801 thousand m

60,146 thousand m

ESG Data | 48

ESG Data
Environment-related Data3
Data item

FY2015FY2016FY2017FY2018

GRI

Greenhouse gas emissions(Scope 1)

1,856 thousand t-CO2

1,828 thousand t-CO2

1,871 thousand t-CO2

1,885 thousand t-CO2

305-1

Greenhouse gas emissions(Scope 2, market based)8

2,502 thousand t-CO2

2,448 thousand t-CO2

2,327 thousand t-CO2

2,264 thousand t-CO2

305-2

Greenhouse gas emissions(Scope 3)8122,034 thousand t-CO2

122,834 thousand t-CO2

128,884 thousand t-CO2

135,670 thousand t-CO2

305-3

CO2 emissions per unit inlifecycle stages 9366 t-CO2/JPY100 million(441 t-CO2/USD million)

412 t-CO2/JPY100 million(480 t-CO2/USD million)

378 t-CO2/JPY100 million(427 t-CO2/USD million)

389 t-CO2/JPY100 million(432 t-CO2/USD million)

305-4

CO2 emission reduction rate in theoperations and products’ after-use(from a 2005 baseline)

37%

29%

35%

33%

305-5

NOx emissions10

4,066 tonnes

4,022 tonnes

4,069 tonnes

4,083 tonnes

305-7

SOx emission10

1,394 tonnes

1,095 tonnes

1,100 tonnes

901 tonnes

305-7

Volume of waste generated11

296 thousand tonnes

311 thousand tonnes

312 thousand tonnes

355 thousand tonnes

306-2

Volume of recycled waste

265 thousand tonnes

282 thousand tonnes

282 thousand tonnes

315 thousand tonnes

306-2

Recycling waste rate

89%

91%

91%

89%

306-2

Volume of waste landfill

31 thousand tonnes

29 thousand tonnes

29 thousand tonnes

41 thousand tonnes

306-2

99.4%

99.4%

98.7%

98.7%

-

Emissions

Waste

Environmental Management
Sites with ISO 14001 certification12

Data represents all Bridgestone Group facilities for the period of January 1–December 31 for each year referenced. Part of the data includes estimated figures.
Sales per raw material used.
Ratio of beneficial use such as material recycle, energy recovery, etc., except for retread, based on latest statistical data of tires.
6
Includes fuel for in-house power generation.
7
Water withdrawal data does not include recycled water from third-parties and rainwater.
8
Category 8, 13 and 15 are excluded from the 15 categories in Scope 3 of the GHG protocol.
9
CO2 emissions per unit of sales produced from lifecycle stages from procurement to manufacturing, distribution and disposal.
10
Emissions from combustion of fossil fuels estimated based on fuel consumption data and corresponding emission factors.
11
Total volume of waste including non-hazardous waste and regulated hazardous waste.
12
Sites targeted by the Bridgestone Group for ISO 14001 certification.
3
4
5

Sustainability Report 2018–2019

ESG Data | 49

Social and Governance related Data
Data item

Number of employees13

Global Executive Committee members13

Executive Officers, Vice Presidents and Officers

13, 14FY2015FY2016FY2017FY2018

Total

144,303

143,616

142,669

143,509Japan

28,61628,32628,37528,793

Americas60,76260,79859,75058,998Europe, Russia, Middle East and Africa

16,76017,24017,51017,637China, Asia Pacific38,16537,252

37,03438,081

Total

13

14

16

9

Number of foreign members

5

6

8

5

Percentage of foreign members

38.5%

42.9%

50.0%

55.6%

Total

51

52

52

52

Number of foreign members

7

9

12

10

13.7%

17.3%

23.1%

19.2%

-

98.7%

99.0%

99.3%

Percentage of foreign members
Product safety

Data item

Sites with ISO 9001 certification

13, 15

Region

Total

Japan

Management
positions19

JuniorManagement
positions20
2.2%

1.9%

13.3%

8.8%

0.0%

2.7%

0.0%

1.9%

9.9%

Americas

11.2%

24.0%

15.5%

10.9%

12.2%

11.1%

Europe and Middle East17

11.7%

19.0%

13.6%

10.9%

11.5%

11.7%

China, Asia Pacific

8.1%

0.0%

10.0%

14.1%

13.1%

7.3%

Number of directors in Bridgestone
Corporation (as of April 1, 2019)

2018

GRI

405-1

GRI

11

Men

9

Women

2

Of which independent external directors

416-1

Other
staff and
positions

1.8%

Total

405-1

Total
managerial
positions

0.9%

Data item

102-7

405-1

11.1%

Bridgestone Corporation
Female Ratio16

Top Management
positions18

GRI

8

Men

6

Women

2

Directors

Total fees 21

JPY 228 million/ USD 2.073 million

Independent external directors

Total fees 21

JPY 130 million/ USD 1.182 million

Executive officers

Total fees 21

JPY 577 million/ USD 5.245 million

102-22102-35

Data as of December 31 for each year referenced.
Including officers of Bridgestone subsidiaries.
Sites targeted by Bridgestone for ISO 9001 certification.
16
Data as of December 31, 2018 from 117663 employers and employees (82 percent of total workforce)
17
Excluding Turkey, South Africa and Russia.
18
Management positions with a reporting line at most two levels away from the CEO in each company.
19
All managerial position excluding “Top management positions” and “Junior management positions.”
20
First-line managers, junior managers and the lowest level of management within a company’s management hierarchy.
21
Data on fees for January 1–December 31, 2018.
13
14
15

Sustainability Report 2018–2019

ESG Data | 50

Sustainability Report2018 –2019*Bridgestone Corporation*owtsnetnews.hq.bsj@bridgestone.com
Public Relations Department
1-1, Kyobashi 3-chome, Chuo-ku, Tokyo 104-8340, Japanwww.bridgestone.com

June 2019