Response to Climate Change

Risks and Opportunities posed by Climate Change

We recognize that risks and opportunities posed by climate change are important business issues.
As for our response to climate change, we have established a company-wide working group (WG) and discuss action plans, which include orientation, goals, and targets. The WG brings together the responsible parties in related business organizations, the discussed action plan is approved by the Executive Committee which the Board of Directors delegates authority to, and the plan is spread to all companies and organizations in the Group.
From the research results published by the Intergovernmental Panel on Climate Change (IPCC) and other research institutions, we consider the following to be the main medium- and long-term risks and opportunities that could arise due to climate change as the Group continues its business activities.
We will promote various activities, including examining business strategies that consider the 2 degrees C target and the setting of emissions reduction targets based on scientific evidence.

Main medium- and long-term risks and opportunities that could arise due to climate change

  • Greater demand for products and services adapted to climate change
  • More sophisticated technologies to reduce waste and recycle resources
  • Reduce use of raw materials and more advanced replacement technology
  • Diversification of raw materials
  • Diversification of procurements sources
  • Greater importance of environmental burden countermeasures
  • Promotion of greater energy efficiency through IoT (increase energy efficiency)
  • Introduction of EVs for logistics mobility and autonomous driving
  • Response to environmental regulations in each country

In response to the above risks and opportunities, we are moving forward with, for example, efforts to reinforce our response to environmental regulations in each country, which include changing fuel sources, making active use of renewable energy, and improving energy efficiency of facilities.

Reduction of Energy Consumption

We are moving forward with efforts to reduce energy consumption through the effective use of energy required for business activities both in and outside the organization in order to contribute to the alleviation of climate change. Efforts are also being made to develop new products and technologies that contribute to climate change alleviation and adaption.
For example, we are working to develop fuel efficient tires. According to the Japan Automobile Tyre Manufacturers Association’s Tyre LCCO2 Calculation Guidelines Ver. 2.0, it is calculated that compared to General Purpose Tires, Fuel Efficient Tires can reduce fuel consumption resulting from tires by 18.8 L/tire for PCR (Passenger Car Radial) and 50 L/tire for TBR (Truck and Bus Radial) per tire life.

Energy consumption within the organization

2015 2016 2017
Energy consumption within the organization [1000GJ] 7,156 7,521 7,825
*Reference: Tire production volume (new rubber) [1000t] 225.2 224.5 239.3
Domestic [1000GJ] 4,314 4,369 4,403
From non-renewable sources [1000GJ] 4,082 4,146 4,187
・Purchased electricity consumption [1000GJ] 942 901 902
・Purchased gas consumption [1000GJ] 1,566 1,696 1,684
・Purchased heavy oil consumption [1000GJ] 519 545 495
From renewable sources (Solar, Thermal Recycle by Used tire) [1000GJ] 232 222 216
Oversea [1000GJ] 2,842 3,152 3,422
From non-renewable sources [1000GJ] 2,841 3,152 3,421
・Purchased electricity consumption [1000GJ] 1,138 1,255 1,353
・Purchased gas consumption [1000GJ] 1,386 1,619 1,724
・Purchased heavy oil consumption [1000GJ] 0 0 0
From renewable sources (Solar) [1000GJ] 0.67 0.67 0.67
  • * Main efforts to reduce energy consumption: change fuel from heavy oil to natural gas and update equipment in accordance with the change in fuel (Sendai Plant of Toyo Tire Corporation )

Gas-turbine cogeneration system introduced at the Sendai plant

Gas-turbine cogeneration system introduced at the Sendai plant

Energy consumption outside of the organization (in Logistics)

2015 2016 2017
Domestic transportation energy consumption[GJ] 143,102 154,555 148,362
  • * Main efforts to reduce energy consumption: introduce containers and undertake modal shifts (train, and marine transport), and utilize consolidated shipments

Energy intensity

2015 2016 2017
Energy intensity (energy consumed/monetary unit of sales) [1000GJ/ 100 million yen] 1.75 1.97 1.93
Energy intensity by domestic main manufacturing base (Conversion to crude oil/production volume) [kl/1000t] 846.83 878.14 876.98
Reduction rate compared to the previous year that Energy intensity by domestic main manufacturing base -0.46% 3.70% -0.13%
  • * Types of energy included in a unit of production: same as “Energy consumption within the organization”

Production ratio of Fuel Efficient Tires

2015 2016 2017
Tires for Passenger Vehicles (PCR) [%] 20.6 27.0 25.1
Tires for Trucks and Buses (TBR) [%] 5.9 8.0 7.1
  • * Main Fuel Efficient Tires produced in fiscal 2017:
    Nano Balance Technology 0, Nano Balance Technology 2: Obtained the highest grade of “AAA” for rolling resistance Reduced rolling resistance 40% (compared to traditional products)
    TRANPATH ML: Obtained “AA” grade for rolling resistance for all sizes Reduced rolling resistance 8% (compared to traditional products)
  • *Rating System Labeling and Fuel Costs:
    Tire Fair Trade Council of Japan has found in their testing that a one-step difference in the rating means a 1% difference in fuel cost. For example, our Tranpath ML has a rolling resistance rating of “AA”. So, it will require 3% less in fuel costs compared to a tire with “C” rating. (The actual savings will vary depending on the vehicle and the way it is driven.)

Reduction of Greenhouse Gas (GHG) Emissions

Greenhouse gas (GHG) emissions are said to be the main cause of climate change, and we are working to reduce GHG emissions by making effective use of energy through business activities both in and outside the organization and our products.
Although, GHG emissions increase with increasing production volume, we are promoting fuel conversion and equipment renewal at manufacturing bases as a countermeasure to scope 1 and 2. And we are promoting development of Fuel Efficient Tires as a countermeasure to scope 3, too.
A calculation of GHG emissions throughout the Group’s value chain based on the Japan Automobile Tyre Manufacturers Association Tyre LCCO2 Calculation Guidelines Ver. 2.0 reveals that GHG emissions during scope 3 category 11 (product use stage) account for at least 85% of overall GHG emissions. We are engaged in efforts to develop fuel efficient tires, and according to the same guidelines, fuel efficient tires can reduce GHG emissions during the use of the tire 51.6 kg CO2e/tire for PCR (Passenger Car Radial) and 433.5 kg CO2e/tire for TBR (Truck and Bus Radial) compared to General Purpose Tires.

GHG emissions

2015 2016 2017
Direct and Indirect GHG emissions [1000t-CO2e] 647.22 667.82 679.17
Direct and Indirect GHG emissions by domestic [1000t-CO2e] 372.78 371.65 359.15
Direct and Indirect GHG emissions by oversea [1000t-CO2e] 274.43 296.18 320.02
Direct (Scope 1) GHG emissions by domestic tire manufacturing base [1000t-CO2e] 175.34 259.50 262.87
Energy indirect (Scope 2) GHG emissions by domestic tire manufacturing base [1000t-CO2e] 91.30 97.65 97.63
Other indirect (Scope 3) GHG emissions by domestic tire manufacturing base [1000t-CO2e] 9,152.35 7,649.96 7,891.07
Direct (Scope 1) GHG emissions by oversea tire manufacturing base [1000t-CO2e] 72.63 84.11 89.76
Energy indirect (Scope 2) GHG emissions by oversea tire manufacturing base [1000t-CO2e] 158.44 169.99 184.88
Other indirect (Scope 3) GHG emissions by oversea tire manufacturing base [1000t-CO2e] 4,107.61 4,582.57 5,253.02
GHG emissions intensity by domestic tire manufacturing base (Scope1+2/production volume) [1000t-CO2e] 1.72 1.76 1.77
Compared to fiscal 2005 of GHG emissions intensity by domestic tire manufacturing base (Scope1+2/production volume) 107% 109% 110%
  • *Type of GHG:CO2,CH4,N2O,HFCs,PFCs,SF6,NF3

Reduction in GHG emissions due to direct impact of efforts to reduce emissions in fiscal 2017

  • Main efforts to reduce emissions: update equipment at production facilities, make more efficient use of heat (fix steam and air leaks), introduce inverter-type electrical equipment, and switch to LED lighting
  • Reduction in GHG emissions: 4,174 t-CO2/year
  • Type of GHG: CO2
  • Scope of reduced GHG emissions: Scope 1 and 2

Emissions of ozone-depleting substances (ODS)

2015 2016 2017
ODS (t-CO2) 418.02 - 110.17
  • *Type of ODS:HCFC,HFC

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

*Domestic manufacturing base

2015 2016 2017
NOx (t) 354.6 335.8 349.2
SOx (t) 19.2 23.4 19.3
Volatile organic compounds (VOC) (t) 792.2 794.1 812.6
  • * Since 2009, VOC has continued to decline, falling 50% compared to fiscal 2000

Tire Life Cycle Assessment (LCA)

The following are greenhouse gas (GHG) emissions for the life cycle of tires calculated based on Japan Automobile Tyre Manufacturers Association’s Tyre LCCO2 Calculation Guidelines Ver. 2.0. These Guidelines have been developed by referring to standards and systems related to LCA in Japan and abroad (ISO 14044, the Japanese Carbon Footprint system, PAS2050, BPX30-323, and GHG protocol).

[Tires for Passenger Car Radial] Calculation was performed for the most popular tire size (195/65R15).
  • General Purpose Tires (per Tire): 300.6 kgCO2e
  • Fuel Efficient Tires (per Tire): 243.9 kgCO2e

GHG emissions over the lifecycle of a PCR tire (LCCO2)

GHG emissions over the lifecycle of a PCR tire

[Tires for Truck and Bus Radial] Calculation was performed for the most popular tire size (275/80R22.5).
  • General Purpose Tires (per Tire): 2,330.3 kgCO2e
  • Fuel Efficient Tires (per Tire): 1,888.1 kgCO2e

GHG emissions over the lifecycle of TBR tire (LCCO2)

GHG emissions over the lifecycle of TBR tire

  • * GHG emission reduction effects of recycling
    For PCR, calculation was performed taking into account the emission reduction effects of thermal use (thermal recycling).
    For TBR, calculation was performed taking into account the emission reduction effects of thermal use (thermal recycling), product reuse (retreading), and material reuse (material recycling).
  • * Reference: Japan Automobile Tyre Manufacturers Association