Priority Theme 2: Contribution to the Global Environment

Priorities

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

Affected Stakeholders

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

Reasons for being Priority Issues (Opportunity & Risk)

With the impact of climate change becoming more severe, societal demands on mobility are also increasing. As TOYO TIRE continues business activities in the mobility society into the future, we recognize that efforts to adapt to or mitigate climate change is the most important issue affecting the growth of the Group in one way or another. Reduction in the emission of greenhouse gases to achieve the “2-degree goal” set in the Paris Agreement, reduction of the water risks that are increasing due to climate change and increased demand, and resource recycling are our responsibility not only to modern society but also to future generations. So, we have positioned these as priority issues to be addressed for the sustainability of the Group.

Policies

In 1990, TOYO TIRE established the Toyo Tire Group Global Environmental Charter, which sets forth a fundamental philosophy and action guidelines for promoting environmentally conscious behaviors and activities. Since then, the Charter has guided our environmental management as one of the fundamental principles of internal controls for the Group. With the establishment of TOYO TIRE’s SDGs in 2019, we are putting together a new policy so that we can move forward to create sustainable value. Over the past three decades, both the quality and quantity of impact that the Toyo Tire Group has had on society have changed significantly. Yet, we will remain committed to fulfilling our corporate social responsibility by offering solutions to climate change and other environmental issues that the world faces today.
And we support international norms; the United Nations Rio Declaration on Environment and Development, Agenda 21 and the Ten Principles of United Nations Global Compact (UNGC), etc.
To fulfill our environmental responsibilities, we quickly establish countermeasures for environmental issues based on a precautionary approach (risk assessments). We respond to organization issues by operating ISO14001-based environmental management system, and disclose the environmental performance of our corporate activities in our CSR report.

Toyo Tire Group Global Environmental Charter

  1. Fundamental Philosophy

Through corporate activities that offer the means to provide joy in movement and comfort in daily living, we protect the planet that is our home and contribute to the creation of a wealthy and abundant society.

  1. Action Guidelines

1) Compliance with laws and regulations
We comply with laws and regulations related to the environment and work to protect it.

2) Reduction of environmental impacts
We strive to generate fewer waste materials in our business activities and suppress the consumption of energy and harmful chemical substances as much as possible to reduce the negative impact on the environment. Moreover, we preserve and effectively use resources through recycling and other efforts.

3) Development of environment-friendly products
At the product planning stage, we consider every step, from production to post-use, and strive to develop new products and new technologies that are friendly to the earth. Moreover, we continue to develop and provide products, technologies and services that are useful for global environmental protection, including through energy conservation and pollution prevention.

4) Harmony with society
As a member of both global and local communities, we strive to realize even better living environments through use of the Toyo Tire Group Environmental Protection Fund and dialogues with different sectors in society.

5) Internal and external awareness raising and public relations activities
We implement clear and comprehensive education and awareness-raising activities about all aspects of the environment for every employee level. We also endeavor with public relations activities for our customers, society, and local residents.

6) Expansion of efforts overseas
We comply with local environmental laws and regulations in all countries and regions we conduct our business and establish environmental management systems there to build harmonious relationships with local communities.

7) Response to emergencies
To prevent environmental disasters, we conduct thorough management and maintain and improve our equipment. At times of emergency, we immediately carry out investigations, take countermeasures, and strive to prevent any recurrence.

  1. Maintaining/Improving Management Systems

We appoint officers and staff members responsible for safety and environment and advance the improvement of management systems, while ensuring that the enforcement divisions clarify our action plans and work to realize an even better environment. Moreover, we conduct annual auditing to confirm the results of our environmental protection activities, evaluate them, and implement new measures.

Environment Management System Certification Status

  • Manufacturing bases and R&D bases which was certified by ISO 14001 (the end of December 2019)
    Manufacturing bases: 13 sites (Certification rate: 92.2%)
    R&D bases: 1 site (Certification rate: 20%)

Ideal Status in 2020

Promoting environmental management on a Group-wide basis

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

For our activities within Japan, we have also formulated the Toyo Tire Group Global Environmental Action Plan, the target year of which is 2020. We create annual activity plans, set objectives, and manage efforts to achieve this plan. Furthermore, we translate the activity plan and objectives into English each year and share it with each overseas business site.
As for global warming countermeasures, since the adoption of the Paris Agreement in 2015, countries throughout the world have set greenhouse gas reduction targets and compiled measures that each entity should undertake as global warming countermeasure plans. We are also moving forward with a review of our medium- and long-term targets taking into consideration laws, ordinances, regulatory standards, and plan targets for countries and regions in which the Group conducts business.

Toyo Tire Group Global Environmental Action Plan (Established in 1992, and Final revision in 2015)

Correspondence with the Toyo Tire Group Global Environmental Charter Mid-Term / Long-Term Targets and Plans (In Japan)
Action Guidelines 1) Compliance with Laws and Regulations Protect the environment by complying with environmental laws and regulations and agreements with local residents.
2) Reduction of Environmental Impact Preventing Global Warming Reduce CO2 emissions intensity per unit of production by 15% compared to fiscal 2005 by the end of fiscal 2020.
Energy Conservation Reduce energy consumption per unit of production by an average of at least 1% per year on a medium- to long-term basis.
Waste Reduction Achieve a 100% recycling rate by the end of fiscal 2020 and maintain it thereafter.
Reduction of Harmful Chemicals Substance Use Reduce VOC (volatile organic compound) emissions by 50% compared to fiscal 2000 and maintain it.
Eliminate SOC (substances of concern) use.
Green Procurement Promote preferential purchase of environment-friendly raw materials and development of environment-friendly technologies.
3) Development of Environment-Friendly Products Environmental Consideration at Development Stage Minimize the use of environmental load substances in products at the development stage.
Development and Provision of Products and Technologies that Reduce Environmental Impacts Promote tire weight and noise reduction and fuel efficiency improvement, and develop energy-conserving products.
4) Harmony with Society Toyo Tire Group Environmental Protection Fund Contribute to environmental protection and the creation of a sustainable society by providing financial assistance to non-profit organizations involved in biodiversity and environmental conservation in Japan and overseas.
Interaction with Local Communities Participate in and cooperate with regional events (cultural festivals, cleaning, etc.).
Support employees’ voluntary social contribution activities.
5) Internal and External Awareness-raising and Public Relations Activities Raise employees’ environmental awareness and disclose information on the Group’s environmental activities to customers and the general public through CSR reports, etc.
Provide environmental education and training suitable for employee’s positions/duties.
6) Expansion of Efforts Overseas Management Systems Understand and comply with local laws and regulations.
Harmony with Local Communities Respect the culture and customs of each country/region and endeavor to harmonize with local communities.
7) Response to Emergencies Prevention of Environmental Disasters and Accidents Execute thorough management of environmental conservation facilities, and measure and control pollution loads.
Review and Improvement of Emergency Response and Other Related Manuals Conduct emergency response drills.
Reforming Management Systems Management Systems Develop and improve a concrete action plan for each plant/business office in line with the Toyo Global Environmental Action Plan.
Conduct business activities in accordance with the ISO14001 guidelines.
Environmental Accounting Conduct environmental accounting in accordance with the Ministry of the Environment’s Environmental Accounting Guidelines.
Environmental Auditing Execute internal and external auditing.

The FY2020 Policy (In Japan)

Plan Target
Conduct on-site confirmation by industrial waste disposal operators
  • For Local governments that require compliance with ordinances 100%
  • For Local governments that require efforts Conduct as planned
PCB waste processing in and outside Japan Following up on the conduct
Conduct environmental audits and follow up on results
  • Audit scope: Expanding the scope of bases/sites covered
  • Number of major findings: 0
  • Correct or review the pointed-out issues: 100%
Conduct energy conservation activities
  • Promoting the introduction of gas turbines to the Kuwana Plant
  • Reduce energy consumption per unit of production by at least 1% year-on-year
CO2 emission reduction
  • Preparationof setting the mid- and long-term targets after 2030, 2050
  • Achieving self-set year-on-year targets
  • Reduce CO2 emissions per unit of production 15% compared to fiscal 2005 by December 2020
Introduction of renewable energy
  • Increasing the renewable energy usage
Establishing a Sound Material-Cycle Society by maintaining and increasing waste recycling rate Maintaining a waste recycling rate of 100%
Reduce and manage of water resources
  • Reduction of water withdrawal by source:10% reduction over 5 years
    * Base year: 2018, Period:2019- 2023
Revision of the Global Environmental Action Plan
  • Drawing up medium- and long-term targets and plans (water intake quantity, resource recycling, eco-friendly products, harmony with society)
Respond to biodiversity preservation activities, continue volunteer activities to maintain forests around business sites

Participate in the following volunteer activities (once a year)

  • “Millennium Hope Hills Project”
  • “TOYO TIRES MIDORI-NO-TSUNAGARI in Mie”, Others
Expanding support for environmental activity organizations Personal support and participation in pro-environment group
  • *including groups aiding Environmental Protection Fund

Responsibilities (April 2020)

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

Activity Promotion System (April 2020)

  • *Toyo Tire Corp.

Activity Promotion System

  • *Affiliated companies, the environmental manager of each company promotes activities based on the national laws and regulations,the annual activity plans of the Safety & Environment Committee,and the group policy examined and established bythe Sustainability Promotion WG.
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 2019)

  • Expenses to alleviate and adapt to climate change in main business area: 3,486 million yen
  • Expenses to prevent pollution of air and water systems in main business area: 159 million yen
  • Expenses to conduct recycling in main business area: 513 million yen
  • Expenses for management activities related to environmental protection in main business areas: 96 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 2019