Pursue decarbonization in all corporate activities
- Challenges
- Our policy <Our approach to climate change>
- Activity promotion system <Governance> (as of April 2022)
- Responsible Executive (as of April 2022)
- Grievance mechanism
- Main resources in promoting activities (2021)
- Responding to climate change
- Reducing GHG emissions
- Reducing Greenhouse Gas Emissions
- Increasing use of clean energy
Challenges
- Responding to climate change
- Reducing greenhouse gas emissions
- Increasing use of clean energy
Relevant stakeholders
- Direct: Local communities, the environment, customers
- Indirect: Shareholders and investors, creditors, NGOs, industry groups
Our policy <Our approach to climate change>
Climate change has begun to cause frequent extreme weather events and natural disasters in recent years, such as heavy rainfall and flooding. We acknowledge that it is increasing the risks faced by our Group, including impacts on the growth of trees providing the natural rubber used to make tires, impacts on plant operations, and disruptions in the supply chain.
We also recognize that our Group’s efforts to reduce CO₂ and other greenhouse gas (GHG) emissions within its business are essential in working toward achieving both the Paris Agreement goal of limiting average temperature increases to below 2°C, and carbon neutrality in Japan.
As the impact of climate change intensifies, increasing social demands are being made towards mobility. We see the mobility business as the heart of our Group, and recognize that responding to climate change is the most key issue decisive to our growth. Our responsibility to both current and future generations is to reduce our greenhouse gas (GHG) emissions to help achieve the long-term targets set by the Paris Agreement, as well as expand our use of clean energy, and we are aiming to be carbon neutral by 2050.
With all this in mind, the Group has declared our support for the TCFD recommendations, and will report information covering governance, strategy, risk management, and metrics and targets in accordance with the TCFD framework in order to activate stakeholder dialogue and promote climate change-related initiatives that help work toward a more sustainable world.
Responsible Executive (as of April 2022)
Director, Corporate Officer and Vice President of Quality Assurance, Environment & Safety Headquarters
Activity promotion system <Governance> (as of April 2022)
In April 2021, we established the Sustainability Committee with the President as chairperson.
The committee meets quarterly to report on, deliberate and decide on measures and responses to climate change and other sustainability issues.
Under the jurisdiction of the Sustainability Committee, we established the Decarbonization Task Force in July 2021 to discuss project plans, targets and KPIs for reducing CO₂ emissions in our corporate activities. The Sustainability Committee regularly checks and monitors the task force’s progress.
Climate change-related issues deliberated and decided upon by the Sustainability Committee are reported to the Executive Committee for further consideration, and reflected in the establishment and review of annual and medium-term business plans. These issues are also reported to the Board of Directors in a timely and appropriate manner.

Grievance mechanism
- Reporting hotline (whistle-blowing system): For executives, employees and suppliers
- Customer Relations Department: For customers (consumers) and local communities
- Online inquiry form: For customers (consumers), shareholders and investors, and NGOs
Main resources in promoting activities (2021)
Costs of climate change adaptation and mitigation in main business area: 2,914 million yen
Activities: Responding to climate change
Strategy (Climate-related risks and opportunities)
We have performed a scenario analysis of the impact climate change could potentially have on Group corporate activities.
Below is an overview of this process.
- Select scenarios to use and understand the outlook of each scenario
- Investigate risks and opportunities in each scenario
- Assess the significance of each risk and opportunity, and identify those of high significance
Scenario analysis process

1. Select scenarios to use and understand the outlook of each scenario
In our analysis, we evaluated the impact of climate-related risks and opportunities in a baseline scenario (3-4°C scenario) and a transition scenario (1.5°C scenario).
In the baseline scenario we focused on physical risks, and explored transition risks in the transition scenario.
Baseline scenario | Transition scenario | |
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Summary | No additional measures are taken to limit the rise of emissions, and average temperatures rise by up to 3-4°C within the 21st century | Decarbonization efforts advance in order to limit the average temperature rise to below 1.5°C during the 21st century |
Scenario outlook |
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Primary scenarios referenced |
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2. Investigate risks and opportunities / 3. Assess significance
We identified our key climate-related risks and opportunities for each scenario based on the results of a significance assessment.
The significance of individual risks and opportunities was rated by working out the financial impact of each one on our Group business, the probability that the potential main causes of each will occur, and the level of impact—including hypothetical cost—each might have on our business.
We then selected the risks and opportunities in each scenario found to be of high significance, and identified topics that would have a large impact on our business.
Baseline Scenario: Risk (Medium-term) Significance Assessment
The red box below indicates risks designated as highly significant.
(Medium-term: around 2030)

Baseline Scenario: Opportunity (Medium-term) Significance Assessment
The red box below indicates risks designated as highly significant.
(Medium-term: around 2030)

Transition Scenario: Risk (Medium-term) Significance Assessment
The red box below indicates risks designated as highly significant.
(Medium-term: around 2030)

Transition Scenario: Opportunity (Medium-term) Significance Assessment
The red box below indicates risks designated as highly significant.
(Medium-term: around 2030)

Highly significant risks and opportunities
Baseline Scenario Short-term: around 2025, Medium-term: around 2030, Long-term: around 2050
Category | Type | Climate-related event | Impact on business | Main financial impact | Significance |
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Risk | Chronic | Changes in climate patterns Medium to long term |
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Medium to high |
Temperature rises Medium to long term |
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Medium to high | ||
Sea level rises Medium to long term |
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Medium to high | ||
Acute | Increase in extreme weather Medium to long term |
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Medium | |
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Medium to high | |||
Frequent and severe heavy rainfall Medium to long term |
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Medium to high | ||
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Medium | |||
Increase and intensification of tropical cyclones Medium to long term |
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Medium to high | ||
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Medium |
Category | Type | Changes in economy and society | Impact on business | Main financial impact | Significance |
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Opportunity | Chronic | Changes in climate patterns, temperature rises Medium to long term |
Greater competitiveness (increased share) through development of differentiated products (high durability, etc.) | Increased profits (increased sales volume) | High |
Increase in extreme weather, frequent and severe heavy rainfall Medium to long term |
Greater competitiveness (increased share) through development of differentiated products (wet-grip performance) | Increased profits (increased sales volume) | High |
Transition Scenario Short-term: around 2025, Medium-term: around 2030, Long-term: around 2050
Category | Type | Climate-related event | Impact on business | Main financial impact | Significance |
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Risk | Policy | Introduction of carbon pricing Medium to long term |
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High |
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Medium | |||
Sales regulations for fossil fuel vehicles and HEVs Short to long term |
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Medium | ||
Obligatory carbon footprint labelling Medium to long term |
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Medium | ||
Technology | Adoption of renewable energy technology Medium to long term |
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Medium | Adoption of energy-saving technology Short to long term |
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Medium |
Adoption of low-carbon technology Medium to long term |
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Medium | ||
Market/ reputation |
Increased environmental awareness in customers Medium to long term |
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Medium | |
Increased raw material costs Medium to long term |
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Medium to high | ||
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Medium | |||
Category | Type | Changes in economy and society | Impact on business | Main financial impact | Significance |
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Opportunity | Market | Greater eco-conscious behavior by stakeholders Medium to long term |
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High |
Expansion of low-carbon product market Medium to long term |
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High | ||
Products/ services |
Increased environmental awareness in customers Medium to long term |
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High | |
Growth of EVs/next-generation vehicles Medium to long term |
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Medium to high | ||
Resource efficiency |
Promotion of energy saving and efficiency Medium to long term |
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Medium | |
Leveraging of recycling Medium to long term |
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Medium | ||
Reducing water usage and consumption Medium to long term |
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Medium | ||
Energy | Growth of renewable energy Medium to long term |
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Medium | |
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Medium | |||
Skyrocketing coal and oil prices Medium to long term |
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High |
Risk management
Identification and assessment of climate-related risks is carried out primarily by the Corporate Administration Division, which leads TCFD response, the Corporate Infrastructure Division’s ESG Promotion Department, which oversees the Sustainability Committee, and the Environment & Safety Division’s Environment & Health Department, which manages the Decarbonization Task Force. After assessment, they are deliberated by the Sustainability Committee to evaluate company-wide climate-related risks.
Through the Sustainability Committee’s Decarbonization Task Force, we closely monitor the regulatory requirements in each country—such as GHG emissions reduction targets (including renewable energy targets), vehicle fuel efficiency regulations, and bans on sales of new gasoline-powered vehicles—and encourage the relevant departments to address each risk and manage progress.
Metrics and targets
Climate-related metrics
- • GHG emissions (scope 1,2,3)
→View results from 2019-2021 here - • GHG emissions intensity
→View results from 2019-2021 here - • ICP to be introduced during 2022 (for making decisions on decarbonization-related investments)
Climate-related targets
- • GHG emissions reduction targets
- * Set by the Sustainability Committee in November 2021 and approved by the Executive Committee in December. Announced in February 15 in 2022.
Scope1 & 2 | GHG emissions: Reduce CO₂ emissions by 46% by 2030 (vs. FY2019). Be carbon neutral by 2050 |
Scope3 | GHG emissions intensity: Aim to help reduce CO₂ emissions per tire by 20% by 2030 (vs. FY2019) |
Continuing to Align with TCFD
To continue incorporating the TCFD recommendations, in the future we will further refine our scenario analysis to gain a greater understanding of the quantitative impacts of risks and opportunities, and to investigate, devise and enact strategies in response.
We will also follow the TCFD recommendations when providing our stakeholders with timely disclosures.
Activities: Reducing GHG emissions
Reducing energy consumption
To help mitigate climate change, the Toyo Tire Group is striving to reduce energy consumption through effective usage of the energy required for corporate activities both in and outside the organization. We are also developing new products and technologies that contribute to climate change mitigation and adaptation.
Energy consumption
(thousand GJ)
2019 | 2020 | 2021 | |
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Total energy consumption | 7,346.1 | 6,777.4 | 6,992.9 |
By Region | |||
Japan | 3,991.7 | 3,594.3 | 3,842.6 |
US | 1,810.0 | 1,704.2 | 1,753.3 |
Asia (excluding Japan) | 1,544.4 | 1,478.9 | 1,397.0 |
Type of Source | |||
Fuel consumption from non-renewable energy sources (gas, oil) | 5,065.8 | 4,662.4 | 4,735.7 |
Fuel consumption from renewable energy sources (solar, waste tires) | 2.91 | 0.44 | 0.80 |
Consumption of purchased electricity | 1, 963.3 | 1,818.8 | 1,944.2 |
Reference: Percentage of renewable energy* in purchased electricity (estimate) | 15.6% | 15.7% | 15.6% |
Purchased steam | 314.2 | 295.8 | 312.2 |
- * Renewable energy sources can include geothermal, wind, solar thermal and photovoltaic, hydro and biomass.
Note: In 2019, the Toyo Tire Corporation Sendai plant switched its thermal energy source from waste tires to natural gas.
Reducing the energy requirements of products (fuel-efficient tires)
2019 | 2020 | 2021 | |
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Total tire production volume (new rubber) | 245.6 | 212.3 | 245.7 |
By Region | |||
Japan | 130.6 | 108.8 | 127.7 |
US | 70.1 | 62.2 | 71.9 |
Asia (excluding Japan) | 44.9 | 41.4 | 46.0 |
Energy consumption (during logistics)
2019 | 2020 | 2021 | |
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Energy consumption for raw material & product transportation in Japan (thousand GJ) | 127.8 | 109.6 | 118.9 |
- * Main efforts to reduce energy consumption: introduce containers and undertake modal shifts (train, and marine transport), and utilize consolidated shipments
Energy intensity
2019 | 2020 | 2021 | |
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Energy intensity within the organization (GJ/million yen) | 19.5 | 19.7 | 17.8 |
- Note: Energy intensity is the total amount of energy used within the organization divided by total sales.
Examples of reducing energy consumption
- Improved energy efficiency by repairing piping and installing high-efficiency equipment
- Reduced energy consumption through automation
- Reduced energy consumption by improving use of air conditioning and lighting
Reducing the energy requirements of products (fuel-efficient tires)
2019 | 2020 | 2021 | |
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Reducing the energy loss *Estimated values |
169.2 | 253.7 | 338.1 |
Reference: Production ratio of Fuel Efficient Tires | |||
PCR (passenger car radial tires) | 20.7% | 19.5% | 23.1% |
TBR (truck and bus radial tires) | 21.0% | 22.4% | 35.0% |
Activities: Reducing Greenhouse Gas Emissions
Reducing Greenhouse Gas Emissions
GHG emissions are the main cause of climate change. The Toyo Tire Group is working to reduce emissions by using energy effectively throughout business activities both in and outside of the organization, and in our products.
While increasing production volume does increase energy consumption, we are promoting fuel conversion and equipment renewals at manufacturing bases to address scopes 1 and 2.
For scope 3 emissions, our R&D team is working to develop fuel-efficient tires and other technologies to help reduce the CO₂ emitted by vehicles.
A calculation of GHG emissions throughout the Group’s value chain based on the Japan Automobile Tyre Manufacturers Association’s Tyre LCCO₂ Calculation Guidelines Ver. 3.0 revealed that scope 3 category 11 (product use stage) emissions account for at least 80% of overall GHG emitted. We are working to develop fuel-efficient tires which, according to the guidelines, can reduce GHG emissions during use by 95.4 kg CO₂e per tire for passenger car radial (PCR) and 879.0 kg CO₂e per tire for truck and bus radial (TBR) compared to standard tires.
GHG emissions
(thousand t-CO₂e)
2019 | 2020 | 2021 | |
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Total direct (scope 1) GHG emissions | 296.3* | 263.9* | 268.2* |
By Region | |||
Japan | 204.7 | 180.7 | 190.4 |
US | 57.8 | 51.8 | 51.0 |
Asia (excluding Japan) | 33.8 | 31.3 | 26.8 |
2019 | 2020 | 2021 | |
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Total indirect (scope 2) GHG emissions | 294.6* | 271.6* | 284.4* |
By Region | |||
Japan | 70.4 | 57.1 | 65.0 |
US | 91.2 | 86.8 | 94.2 |
Asia (excluding Japan) | 133.0 | 127.7 | 125.2 |
2019 | 2020 | 2021 | |
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Total other indirect (scope 3) GHG emissions | 13,626.4 | 12,059.8 | 12,932.2 |
- * Third-party verified data
Note: GHG used for calculation is CO₂.
2019 | 2020 | 2021 | |
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GHG emissions intensity (t-CO₂/million yen) | 1.57 | 1.56 | 1.40 |
- Note: Emissions intensity is total volume from scopes 1 & 2 divided by total sales.
Third-party assurance:
To ensure the accuracy and reliability of the data that we disclose, we have obtained the assurance of a third-party organization for our fiscal 2021 environmental data.
- Verification scope: 24 sites* belonging to Toyo Tire Corporation and related companies, for total scope 1 energy-derived CO₂ emissions (excluding off-site mobile units), scope 2 emissions, total water intake, breakdown of water intake, total water discharge, breakdown of water discharge, and total water consumption
- Verification criteria: ISO14064-3: 2006, related laws and regulations, and the assurance organization’s protocol
- Third-party assurance organization: SGS Japan Inc.
- * Toyo Tire Corporation (Headquarters, Sendai Plant, Kuwana Plant (tire and automotive parts), Hyogo Manufacturing Complex, Corporate Technology Center, Tire Technical Center, Automotive Parts Technical Center, Miyazaki Tire Proving Ground, Saroma Tire Proving Ground); Fukushima Rubber Co., Ltd.; Toyo Soflan Co., Ltd.; Ayabe Toyo Rubber Co., Ltd.; Orient Machinery Co., Ltd. (Headquarters, Sendai branch, Rokko branch); Toyo Automotive Parts(USA), Inc.; Toyo Tire North America Manufacturing Inc.; Toyo Automotive Parts (Guangzhou) Co., Ltd.; Toyo Tire (Zhangjiagang) Co., Ltd.; Toyo Tire (Zhangjiagang) Co., Ltd.; Silverstone Berhad; Toyo Tyre Malaysia Sdn. Bhd.; Toyo Rubber Chemical Products (Thailand) Limited
Please click here to read more about verification statement.
Activities: Increasing use of clean energy
From 2022, the Toyo Tire Group is successively converting our Japanese plants to renewable energy sources.
Moving forward, we will expand our use of clean energy at our plants and business sites both in Japan and abroad in pursuit of decarbonization in all of our corporate activities.
Action for Sustainability
- Message from the President
- TOYO TIRE Sustainability
- TOYO TIREʼs SDGs
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TOYO TIRE Materiality
- Help create a society of sustainable mobility / Support the enjoyment of mobility for all
- Support diverse talent with motivating challenges and job satisfaction
- Continue innovating next-generation mobility technology
- Pursue decarbonization in all corporate activities
- Promote supply chain sustainability
- Ensure the fundamentals of manufacturing: quality and safety
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Sustainability and ESG themes beyond the material issues
- E: Environmental
- S: Upholding human rights
- S: Managing occupational health and safety to global standards
- S: Crisis management (responding resiliently to natural disasters, infections and other crises)
- S: Working with local communities (Helping solve local issues)
- G: Sound governance
- G: Compliance
- G: Information security
- G: Promoting DX (Achieving borderless and centralized management through ERP reform)
- Toyo Tire Group Charter of Corporate Behavior
- Toyo Tire Group Code of Conduct
- Site Report
- Report Downloads
- Editorial Policy
- GRI Content Index
- ESG Data/Survey Index
- Communication on Progress (CoP) Index
- External Recognition