TOYO TIRE Materiality

TOYO TIRE Materiality

In promoting sustainability, we believe it important to identify issues that should be given priority when considering factors such as the relevant scope of our business domain and internal resource limitations.
We have thus established our Group material issues, which were decided upon by the Sustainability Committee in June 2021 and then approved by the Executive Committee in July.
Along with stretegically investing our internal resources into initiatives related to the material issues, we will also use this opportunity to foster a corporate culture where each employee addresses sustainability issues by connecting materiality to their own duties, as well as strengthen materiality-focused stakeholder engagement, such as public ESG dialogues.

Process of identifying material issues

After declaring our intention to build sustainability into corporate management in our Medium-term’21 Plan announced in February, we soon formed a steering committee for sustainability where the President and vice presidents of each headquarters began discussions on identifying material issues. This was transitioned into the Sustainability Committee in April, and the two committees collectively held discussions from February a total of four times over four months. In May, a total of 40 division general managers and other executives who are key in the promotion of sustainability met to discuss the same themes, and the outcome was taken into account in committee discussions.

Process of identifying material issues

Process of identifying material issues

Process of setting targets and KPIs

Based on our Sustainability Policy, we have set specific activity themes for each material issue and formulated medium- to longterm targets and goals for each theme, as well as processes and measures to achieve them.
To set targets and goals, we first considered the vision of what we would like the Group and society to achieve in the long term (by 2030), and made these our “Vision Goals.” We then established “Vision KPIs” as benchmarks to confirm our progress on the way towards these goals.
For the medium (as of 2025) and short term, we worked backwards from 2030 to plan the intermediate processes and measures needed to achieve these goals, which will be built into annual policies and business plans, and progress managed.

Process of setting targets and KPIs

Material issues

Domain Ⅰ Value creation

Unique value provided to customers and society through our products and services

1. Help create a society of sustainable mobility

We recognize that the sustainability of tire and auto parts manufacturers can only be ensured through a society of sustainable mobility. We will thus fulfil our duty in using our unique products and services to help establish a society of sustainable mobility that boasts net-zero environmental impact, zero accidents and efficient transportation.

2. Support the enjoyment of mobility for all

We see it important to offer creative added value that supports the diversity of a society of sustainable mobility by fulfilling the essential conditions for sustainability (environmental compliance, safety) while also meeting the varied expectations people have for their own mobility through our unique products and services.

Domain Ⅱ Foundation for value creation

The base for value creation

3. Support diverse talent with motivating challenges and job satisfaction

We seek individuals who can equip themselves with the medium- to long-term perspective of a tire and automotive parts manufacturer, think creatively and flexibly, and show initiative and ambition. We will secure a foundation for diverse talent who support our company’s business management and create high added value in these rapidly changing and uncertain economic and social times.

4. Continue innovating next-generation mobility technology

The value we provide through our products and services must support the evolution in mobility being demanded in this new era. To make this happen, we believe it is vital to engage in ongoing technological innovation and make continuous advancements that meet the demands of society.

Domain Ⅲ Risk management

Responsible business practices that protect the means of value creation

5. Pursue decarbonization in all corporate activities

Our Group will adjust its course to match that of global society, including Japan, business communities and industries in sharing the same targets towards decarbonization, and work united as a company in tackling this key issue. We will not only aim to eliminate the environmental impact of mobility through our products and services, but also to decarbonize our entire manufacturing process and supply chain, and tie these measures to increased cost competitiveness.

6. Promote supply chain sustainability

We understand that our own sustainability cannot be ensured without the sustainability of our suppliers of natural rubber and other raw materials, and that the genuine enjoyment of mobility is created through a healthy supply chain. We thus see environmental and social issues in the supply chain as key challenges that we will prioritize in our efforts.

7. Ensure the fundamentals of manufacturing: quality and safety

No matter how much value a product or service may create, if it cannot maintain a strong core of quality and safety, it is no longer able to offer that significance or value to society. Quality and safety are therefore our top priority in all of our operations, building on lessons we have learned in the past.

Activity themes linked to material issues

As our materiality is formed of the key priority issues of the Group, we have set up task forces as sub organizations within the Sustainability Committee, and are also using existing company-wide structures and meetings to set targets and KPIs for each theme, and plan processes and measures to achieve them. After approval of these by the Sustainability Committee and Executive Committee, each heardquarters will incorporate them into their annual policies and business plans and carry them out.

Medium- to long-term materiality initatives

Activity themes linked to material issues