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 strategically 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 integrate sustainability into corporate management in the Medium-Term ’21 Plan, we immediately established a sustainability steering committee formed of the president and vice presidents of each headquarters to begin identifying material issues in February 2021. This steering committee was then formally reorganized as the Sustainability Committee in April, and a total of four sessions were held over four months from February to May of that year. Also in May, discussions on the same topic took place between a total of 40 division general managers and other executives who are key to advancing sustainability. The outcomes of these discussions were then fed back for further deliberation by the Committee.

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 long-term 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.
As 2025 marked the final year of our short-term sustainability goals, we conducted a review of our target years, activity themes and KPIs. We have now readjusted our specific goals and metrics, accounting for potential changes in the external environment over the long term (2035) and medium term (2030), to align them with the strategies outlined in our Medium-Term ’26 Plan.

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 headquarters will incorporate them into their annual policies and business plans and carry them out.

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Material issues