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TOYO TIRES WORLDWIDE

Contribution to the Global Environment

Issues to be addressed

  • Efforts to alleviate and adapt to climate change
  • Efforts to reduce water risk
  • Resource recycling efforts

With the impact of climate change becoming more severe, societal demands on mobility are also increasing.
With its mobility business at the core of its management, TOYO TIRE recognizes action on climate change as one of the top priorities that will determine the future growth of the Group. We have a responsibility to the people living in current and future generations for reducing water-related risks, realizing resource recycling, and reducing greenhouse gas emissions to achieve the long-term goal set in the Paris Agreement. As such, we prioritize these tasks to ensure the sustainability of the Group.

Affected Stakeholders

Directly: Local Communities, Environment, Customers
Indirectly: Shareholders and Investors, Creditors, NGOs, Business Organizations

Guiding Policies

As one of the guidelines that we need to go about achieving TOYO TIRE's SDGs, we have established the Global Environment Policy, under which we will support international norms and, through precautionary approaches, involve all players in our value chain in contributing to mitigating climate change and other environmental issues that the world faces. Furthermore, in support of international norms such as the United Nations Rio Declaration on Environment and Development, Agenda 21, and the UNGC Ten Principles, we will act proactively in addressing environmental issues by taking risk assessment and other preventive approaches to fulfill our responsibilities concerning the environment.

Global Environmental Policy

  1. Fundamental Philosophy

The Toyo Tire Group aims to create a sustainable society, where we share all-encompassing affluence and joy with everyone involved in our business. To this end, we hereby pledge to fulfill our corporate responsibility to the global environment into the future, as we seek to achieve TOYO TIRE's SDGs for resolving social issues on a global scale.

  1. Action Guidelines

1）We comply with international rules and laws.

We will continue to support international rules for the protection of the global environment and work to comply with environment-related laws and regulations in the countries/regions where we operate.

2) We act to mitigate the impact of the climate crisis.

Climate change is causing various critical situations (climate crises) across the planet. We acknowledge that, for us to stay in business, it is of great importance to respond to this change and whatever changes the future may bring. While contributing to the achievement of internationally-committed goals, such as curbs on energy usage and reduction in CO2 emissions, we will lay a foundation for our business continuity that minimizes the impact on our business in the wake of natural disasters.

3) We use water with the utmost care.

We are cognizant of the importance of ensuring access to safe water (fresh water) at our premises and their surrounding areas for business continuity. Accordingly, we will not only strive to reduce our water consumption but also minimize the impact that the intake and discharge of water that we utilize for our business activities may have on the areas surrounding our premises, with the aim of creating a social environment where it is perfectly safe to use water resources.

4) We do not waste resources.

We are also cognizant of how important it is, for the sake of business continuity, to use only the necessary amount of resources, conforming to a predetermined plan, on the premise that all resources on this planet are limited. We will also contribute to the development of an enriched social structure for utilizing resources with enhanced efficiency by using precious resources effectively and without waste.

5) We continue manufacturing with considerations given to the environment and people’s lives.

In each process of the value chain, we determine if precautions are taken to conserve the environment and ensure that chemical substances are used safely. We will adhere to these measures to continue to provide products, technologies, and services that enrich the environment and the lives of people.

6) We protect the rich natural environment and people's lifestyles in places where we source our raw materials.

Being fully aware of the fact that we consume large quantities of natural rubber as raw materials for our products, we will strive to protect bountiful forests in places of its origin, as well as the lifestyles of people living there in collaboration with all involved organizations.

7) We value communications with the public.

We are cognizant of the importance that, as a corporate citizen of society, we act with a full understanding of the enduring impact that our business activities may have. Therefore, we will strive to facilitate communications and build a better relationship with the public through a series of constructive and sound dialogues with them in order to ensure that we understand ourselves better and that the public develops an unobstructed understanding of our company.

  1. Maintaining/Improving Management Systems

Officers and organizations in charge of safety & environment shall be held responsible for the content of this Charter and promote business activities in line with it throughout the Toyo Tire Group.
The departments in charge of implementation shall determine their action plans (targets) in accordance with the action guidelines and strive to realize the basic principles laid out in this Charter. The Environment Subcommittee of the Companywide Safety and Health Committee audits the content of the action plans and their progress annually to evaluate the outcome of such actions and, if deemed necessary, provide guidance on improvement.
Plans (targets) and their progress for matters of particular importance in the action guidelines, such as climate change, water, and resources, shall be reported periodically to the Board of Directors.

Environment Management System Certification Status

Manufacturing bases which was certified by ISO 14001 (the end of December 2020)
Manufacturing bases: 13 sites (Certification rate: 92.2%)

TOYO TIRE’s SDGs (Ideal Status in 2030)

We will contribute;

  • - to improve resource usage efficiency including water and energy through promoting to upgrade of equipment and operation on manufacturing sites.
  • - to promote the use of renewable energy in the region to increase renewable energy share of energy used at manufacturing sites.

Goals

Pursuant to the Global Environment Policy, the Environmental Working Group determines the action policy and targets for the year and manages relevant activities. The action policy and targets thus determined are shared with our overseas sites. Meanwhile, in November 2021, we established medium- and long-term CO₂ emission reduction targets to address climate change.（Click here for details）

2021 Environmental Subcommittee Priority Policy

Policy deployment item Target (Control index)
Promote proper treatment of industrial wastes

Conduct on-site confirmation of industrial waste companies.

  • Ordinance obligatory local government: 100% implementation
  • Effort obligatory local government: Aim to implement at least once every two years

＊ Maintain 100% recycling rate.
Promote processing for PCB wastes
  • Implement and manage PCB waste treatment as planned.
Confirm environmental issues at all sites and promote corrective actions

Conduct environmental audits in all sites and confirm the extraction of issues and the completion of corrections.

  • Audit target range：
    　Domestic: 26 domestic sites (Domestic bases, sales company branch offices, distribution warehouses)
    　Overseas: 5 factories
  • Number of critical issues = 0
  • Confirm 100% implementation of correction or review of the indicated items
Promote the implementation of energy saving activities
  • Complete more than 1% reduction in energy intensity compared with the previous year
Promote reduction of CO2 emissions
  • Reduce Scope 1 & 2 emissions by 46% by 2030 compared to 2019 levels by thoroughly implementing energy conservation and expanding the use of renewable energy.
    *Following the establishment of medium- to long-term CO₂ emission reduction targets, the initial targets for the fiscal year were changed.
Promote reduction of water resources
  • Reduce in water intake volume: 10%/5 years
    （base year:FY2018, reduction duration: 2019 to 2023）
Promote biodiversity conservation activities
(Maintaining and continuing forest maintenance volunteer activities around sites, continuing support for other organizations, offering environmental information for employee education)

Human support and participation in environmental protection groups.

  • Maintenance of grant / donations activities, continuation of volunteers activities of TT(Sendai plant ) and KW(Kuwana plant), an offer of information on protection funds to employees : 4 times / year, or more

Responsibilities (April 2021)

Director, Corporate Officer & Vice President of Quality Assurance, Environment & Safety Headquarters

Activity Promotion System (April 2021)

  • ※Toyo Tire Corp.

TOYO TIRE belongs to the following trade associations

Grievance Mechanism

  • Reporting Hotline (Creating an Internal Control System) *Targets: Employees, Business Partners
  • Customer Relations Department *Targets: Customers, Local Communities
  • Inquiry Form (on the Website) *Targets: Customers, Shareholders and Investors, NGOs

Main Resources (Fiscal 2020)

  • Expenses to alleviate and adapt to climate change in main business area: 2,963 million yen
  • Expenses to prevent pollution of air and water systems in main business area: 98 million yen
  • Expenses to conduct recycling in main business area: 411 million yen
  • Expenses for management activities related to environmental protection in main business areas: 74 million yen
  • * The calculations conform to the Environmental Accounting Guidelines 2005 Edition (Ministry of the Environment). Includes depreciation for depreciable assets.
  • * Main business area: Japan

Activities in 2020

Sustainability