Challenges
- Addressing nature-related risks and opportunities (TNFD)
- Addressing water resources
- Addressing WASH issues
- Contributing to the circular economy
- Reducing and properly disposing of waste
- Preventing chemical pollution
Relevant stakeholders
Direct:Local communities, the environment, customers
Indirect:Shareholders and investors, creditors, NGOs/NPOs, industry groups
Our policy
Our Global Environmental Policy commits us to supporting international standards, and we adopt a precautionary approach in our efforts to help solve global climate change and other environmental challenges across the value chain.
We take early action to address environmental issues through this precautionary approach such as risk assessments to support international norms, including the United Nations (UN) Rio Declaration on Environment and Development and Agenda 21 and 10 principles of the UN Global Compact, and fulfill our responsibilities. Following the release of the final recommendations (ver. 1.0) of the Taskforce on Nature-related Financial Disclosure(TNFD) in September 2023, we started initial disclosures where practicable.
Global Environmental Policy
1.Fundamental Philosophy
The Toyo Tire Group aims to create a sustainable society, where we share all-encompassing affluence and joy with everyone involved in our business. To this end, we hereby pledge to fulfill our corporate responsibility to the global environment into the future, as we seek to achieve TOYO TIRE's SDGs for resolving social issues on a global scale.
2.Action Guidelines
1) We comply with international rules and laws.
We will continue to support international rules for the protection of the global environment and work to comply with environment-related laws and regulations in the countries/regions where we operate.
2) We act to mitigate the impact of the climate crisis.
Climate change is causing various critical situations (climate crises) across the planet. We acknowledge that, for us to stay in business, it is of great importance to respond to this change and whatever changes the future may bring. While contributing to the achievement of internationally-committed goals, such as curbs on energy usage and reduction in CO2emissions, we will lay a foundation for our business continuity that minimizes the impact on our business in the wake of natural disasters.
3) We use water with the utmost care.
We are cognizant of the importance of ensuring access to safe water (fresh water) at our premises and their surrounding areas for business continuity. Accordingly, we will not only strive to reduce our water consumption but also minimize the impact that the intake and discharge of water that we utilize for our business activities may have on the areas surrounding our premises, with the aim of creating a social environment where it is perfectly safe to use water resources.
4) We do not waste resources.
We are also cognizant of how important it is, for the sake of business continuity, to use only the necessary amount of resources, conforming to a predetermined plan, on the premise that all resources on this planet are limited. We will also contribute to the development of an enriched social structure for utilizing resources with enhanced efficiency by using precious resources effectively and without waste.
5) We continue manufacturing with considerations given to the environment and people’s lives.
In each process of the value chain, we determine if precautions are taken to conserve the environment and ensure that chemical substances are used safely. We will adhere to these measures to continue to provide products, technologies, and services that enrich the environment and the lives of people.
6) We protect the rich natural environment and people's lifestyles in places where we source our raw materials.
Being fully aware of the fact that we consume large quantities of natural rubber as raw materials for our products, we will strive to protect bountiful forests in places of its origin, as well as the lifestyles of people living there in collaboration with all involved organizations.
7) We value communications with the public
We are cognizant of the importance that, as a corporate citizen of society, we act with a full understanding of the enduring impact that our business activities may have. Therefore, we will strive to facilitate communications and build a better relationship with the public through a series of constructive and sound dialogues with them in order to ensure that we understand ourselves better and that the public develops an unobstructed understanding of our company.
3.Maintaining/Improving Management Systems
Officers and organizations in charge of safety & environment shall be held responsible for the content of this Charter and promote business activities in line with it throughout the Toyo Tire Group.
The departments in charge of implementation shall determine their action plans (targets) in accordance with the action guidelines and strive to realize the basic principles laid out in this Charter. The Environment Subcommittee of the Companywide Safety and Health Committee audits the content of the action plans and their progress annually to evaluate the outcome of such actions and, if deemed necessary, provide guidance on improvement.
Plans (targets) and their progress for matters of particular importance in the action guidelines, such as climate change, water, and resources, shall be reported periodically to the Board of Directors.
Environment Subcommittee FY2026 priority measures
| Measures being developed | Targets, approaches, KPIs and management |
|---|---|
| Improving compliance with waste disposal laws and regulations |
・Target:
Maintain zero legal violations identified by administrative agencies ・Approach: (1) Progress the certification of excellence process for industrial waste contractors (collection, transportation, and disposal) and conduct regular on-site inspections (2) Implement indirect confirmation of final disposal contractors through intermediate processors (3) Select appropriate disposal contractors (with certification of excellence if possible) when concluding new industrial waste contracts (4) Consider measures for a circular economy (expanding resource circulation by using retread tires, etc.) ・KPI: On-site inspection rate at target contractors 100% Grade A contractors in on-site inspection review 100% Rate of waste contractors with certification of excellence equal to or higher than previous year Resource recycling rate 100% (Maintain a 100% recycling rate and visualize the composite ratios of recycling classifications) ・Management: Report and manage progress in the Environment Subcommittee |
| Improving compliance with environmental laws and regulations |
・Target:
Maintain zero legal violations identified by administrative agencies ・Approach: Identify and improve environmental issues at all sites (Some Japan sites） Address external environmental audits → Improve identified issues → Promote horizontal deployment at other bases (Other Japan sites) Internal audits (+confirm horizontal deployment at other sites mentioned above) → Improve identified issues (Overseas sites) Schedule environmental and internal audits by external organizations when appropriate ・KPI: Improvement rate of issues identified at the administrative guidance level 100% ・Management: Monitor monthly results and submit reports to Environment Subcommittee meeting (or extraordinary subcommittee meeting if issues arise) |
| Confirm environmental issues at all sites and promote corrective measures |
・Target:
Reduce water withdrawal intensity in water-stressed areas by 10% by 2030 (base year: 2023) （Other target）Maintain water withdrawal intensity at or below the previous year’s level to improve water efficiency
(2) Strengthen water usage monitoring systems at each site and promote improvement activities (3) Take action based on the Global Long-term Roadmap for Water Resources (Phase 2) ・KPI: Number of improvement measures implemented in water-stressed areas (one or more) (Other KPI) Number of water usage improvement activities implemented (one or more at each site) ・Management: Report and manage progress in the Environment Subcommittee |
| Enhancing the management of hazardous chemicals |
・Target:
Reduce Japan VOC emissions below the previous year’s level ・Approach: (1) Reduce precure coating usage (2) Add anti-static materials (3) Use water-based coatings (4) Introduce new adhesive coating equipment to reduce adhesive usage ・KPI： Emissions intensity equal or lower than previous year Reduction in precure coating usage, reduction in anti-static liquids, reduction in VOC through water-based coatings, reduction in adhesives ・Management: Manage in the VOC Reduction Working Group Advance management of the latest SDS versions by using the SDS management system. Confirm compliance status using a list of applicable laws and regulations on chemical substances |
Operational status of environmental management system
ISO 14001 certification at manufacturing sites (as of June 30, 2025)
Number of manufacturing sites (globally): 11
ISO-certified sites: 10 (certification rate: 90.9%)
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ISO 14001 certification at manufacturing sites (as of January 31, 2026)
Number of manufacturing sites (globally): 10
ISO-certified sites: 9 (certification rate: 90.0%)
Responsible executive (as of April 2026)
Senior Corporate Officer and Vice President of the Quality Assurance, Environment & Safety Headquarters
Organizational responsibilities (as of April 2026)
- *Toyo Tire Corporation
Reporting systems
- Reporting hotline (whistle-blowing system): For executives, employees, suppliers
- Customer Relations Department: For customers (consumers) and local communities
- Online inquiry form: For customers (consumers), shareholders and investors, and NGOs/NPOs
Main resources for promoting activities (2025)
- Expenses for preventing pollution of air and water systems: 108 million yen
- Expenses for recycling resources: 436 million yen
- Expenses for managing environmental activities: 78million yen
- * Adheres to the Environmental Accounting Guidelines 2005 (Japan’s Ministry of the Environment). Includes depreciation of depreciable assets.
- * Main business area: Japan
Environmental accounting
Addressing nature-related risks and opportunities (TNFD)
In 2023, the Taskforce on Nature-related Financial Disclosures (TNFD) published version 1.0 of its recommendations and the Science Based Targets Network (SBTN) published version 1.0 of its guidance for setting Science Based Targets for Nature (SBTs for Nature), which clearly set out the role that companies must play for nature: avoid and reduce the impact of their business activities, and regenerate and restore ecosystems.
We recognize that our operations depend on natural capital including natural rubber and water resources, and that we as a company have a significant impact on nature. In 2023, we established a long-term roadmap that guides our operations onto a sustainable footing by assessing the current status of the locations where we operate, minimizing our negative impact on nature, and creating a positive impact.
Long-term roadmap
Nature-related risks and opportunities
We assessed the natural rubber plantations and natural rubber processing plants in the upstream of our supply chain, as well as the production bases we operate directly, in order to identify risks and opportunities, taking account of our dependencies and impacts on natural capital.
Dependencies and impacts on natural capital
Using the tool recommended by the TNFD for assessing dependencies and impacts on natural capital (ENCORE*2), we have conducted assessments of the dependencies and impacts of our business activities based on the actual processes they involve and identified areas of relatively high dependency and impact as shown in the table below.
- *2 A tool that helps users to examine their exposure to nature-related risks and understand their dependencies and impacts on nature.
Risks and opportunities
Based on our dependencies and impacts shown above, we identified the nature-related risks and opportunities in our business operations. We then assessed the significance of these risks and opportunities and determined the following to be highly significant:
＜Risks＞
| Value chain | Scenario | Category | Description | Possible risk | Financial impact | |
|---|---|---|---|---|---|---|
| Upstream | Natural rubber plantations | Transition | Policy | Changes to legislation/regulations aimed at generating nature-positive impacts and reducing negative impacts | Introduction or tightening of regulations on land use and natural forest harvesting, restricting the expansion of natural rubber plantations | Increased procurement costs due to raw material price volatility and change of raw material suppliers |
| Introduction or tightening of regulations on the use of nutrient pollutants and fertilizers, limiting the application of nutrients and fertilizers | ||||||
| Liability | Fines/penalties due to nature-negative outcomes (legal liability for nature-related risks) | Claims for damages by victims of our negative impacts on nature | ||||
| Market | Shifting customer/investor values or preferences toward companies that generate nature-positive impacts and reduce negative impacts, and that offer products and/or services with lower nature dependency | Being required to switch to species more resilient to flooding and storms and to make environmental adaptations | ||||
| Being required to switch to species that are productive with less fertilizer and to make environmental adaptations | ||||||
| Reputational | Changes in sentiment toward the organization/brand due to impacts on nature | Deterioration in the company’s reputation due to its negative impacts on nature | ||||
| Natural rubber processing plants | Physical | Chronic | Changes in the ecosystem services the organization is dependent on or impacted by | Deterioration of the freshwater provisioning and water flow regulation functions causing water resource reduction in the watershed and resulting in a decrease in the volume of natural rubber processed | ||
| Direct operations | Transition | Market | Shifting customer/investor values or preferences toward companies that generate nature-positive impacts and reduce negative impacts, and that offer products and/or services with lower nature dependency | Boycotts by customers due to the company’s failure to respond adequately to customers’ demand for environmental impact reduction | Decrease in sales due to boycotts by customers | |
| Technology | Requirements to transition to more efficient, resilient and less environmentally damaging technologies, and to respond to new monitoring technologies used by regulators | Being required to introduce/develop new technologies for nature conservation and environmental impact reduction | Increased R&D costs due to introduction/development of new technologies | |||
＜Opportunities＞
| Value chain | Scenario | Category | Description | Possible opportunity | Financial impact |
|---|---|---|---|---|---|
| Direct operations | Business performance | Reputational capital | Actions that have nature-positive impacts/mitigate nature-negative impacts that improve the organization's reputation | Brand value improvement resulting from actions to avoid/reduce environmental damage and restore nature, and from effective messaging | Increase in sales due to improved brand value |
Future plans
We identified the risks and opportunities in the upstream (cultivation and processing of natural rubber) and direct operations. Going forward, we will examine the local characteristics of these value chain in finer detail and consider how to manage the risks and create opportunities reflecting those characteristics.
Addressing water resources
Addressing water-related risks and opportunities
In 2023, following the Aqueduct assessment that found our Chinese operations to be high risk for water depletion, we set a target of reducing water withdrawal intensity at our bases in China by 10% by 2030 compared to the 2023 levels.
We continue the program of facility improvements to maximize the recycling and reuse of water used in production processes as well as implement water withdrawal management with a focus on raising awareness of the importance of natural capital through measures such as section-level target-setting.
The water withdrawal intensity measured with tire production (new rubber volume) as the denominator fell to 6.6 (kL/t) in 2025 compared to 7.7 (kL/t) in 2023. That represents a reduction of approximately 15%, already exceeding the 10% reduction target set for 2030.
- *3 Water consumption: The amount of water withdrawn that cannot be reused
- *4 Volume of usable water = Volume of water resources in the basin – Volume of water consumption from the basin
- ・Assessment indicators: Of the two Aqueduct water resource risk assessment indicators, Water Stress and Water Depletion, Toyo Tire Corporation uses Water Depletion to conduct its risk assessments because that is a more pertinent representation of the water resource situation in the basin.
- ・Assessed areas: 12 areas where the Group has manufacturing bases
- ・Assessment period: April 2023
- ・Assessment results: One high risk area in China (Zhucheng City). One medium-high risk area in Thailand. All the other areas were low risk.
Reducing volume of water withdrawal and managing discharge appropriately
The Toyo Tire Group uses water from various sources including local municipal supplies, other public and private water facilities, and groundwater. That water is used primarily at manufacturing sites for boiler equipment, parts processing equipment, the colling of production parts, cooling towers, and welfare facilities.
We promote appropriate management of water resources across the Group to help conserve water and use water effectively. That management includes improving equipment to maximize water recycling in each process. We set targets for reducing water consumption and manage water withdrawal intensity at major bases in Japan and globally (except high-risk sites) to maintain appropriate water use.
Neutralization of wastewater is carried out at water treatment facilities, and pH, BOD, and COD are checked against relevant regulations such as the Water Quality Pollution Control Act. In addition, the head office aggregates and manages water withdrawal volumes at each business office as well as wastewater via drainage meters on a monthly basis.
Water withdrawal
Click here to view the data for 2021-2025.Water discharge
Click here to view the data for 2021-2025.Management of water discharge-related impacts at our manufacturing sites
Click here to view the data for 2021-2025.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 2025 environmental data.
-
Verification scope: 114 sites*belonging to Toyo Tire Corporation and related companies, for energy-derived CO2, energy-derived CH4, N2O, non-energy-derived dry ice, HFC (at some sites), total Scope 1 energy-derived CH4 and N2O emissions, total Scope 2 emissions, Scope 3 Category 1, 11 and 12 emissions, total water withdrawal, breakdown of water withdrawal, total water discharge, and breakdown of water discharge
- *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, Tokyo Office, Hiroshima Office, Kanto Distribution Center, Kansai Distribution Center); Fukushima Rubber Co., Ltd.; Ayabe Toyo Rubber Co., Ltd.; Orient Machinery Co., Ltd. (Headquarters, Sendai branch, Rokko branch); Toyo Tire Japan Co., Ltd.; Toyo Tire North America Manufacturing Inc.; Toyo Automotive Parts (Guangzhou) Co., Ltd.; Toyo Tire (Zhangjiagang) Co., Ltd.; Toyo Tire (Zhucheng) Co., Ltd.; Toyo Tyre Malaysia Sdn. Bhd.; Toyo Rubber Chemical Products (Thailand) Limited; Toyo Tire Serbia D.O.O.
- Verification period: January 2025 to December 2025
- Verification criteria: ISO14064-3: 2006, related laws and regulations, and the assurance organization’s protocol
- Third-party assurance organization: SGS Japan Inc.
Water withdrawal
Click here to view the data for 2021-2025.
In fiscal 2025, there were no legal violations related to water quality, water withdrawal or water discharge.
Addressing WASH issues
We have conducted surveys and organized findings on WASH issues to better understand the situation in bases, watersheds, and supply chains in terms of water resource shortages, water pollution and sanitation environments. These activities have confirmed that there are no current outstanding significant WASH issues that need to be prioritized in the regions in which our manufacturing sites are located.
While streamlining our approach to individual WASH issues based on the latest evaluation results, we will continue to monitor water resource and sanitation-related trends in terms of how they might impact successful coexistence with local communities.
Contributing to the circular economy
Resource recycling
We believe it is the social responsibility of global manufacturers to make it their mission to help transition our society from one that consumes resources to one that recycles resources.
The Toyo Tire Group is using an increasing amount of raw materials as the scale of our production expands. We strive to secure a stable and sustainable supply of natural rubber, our prime raw material, and other materials at the procurement stage. At the same time, we are also working hard to promote research and development of new materials and improve product design and production processes to ensure more efficient material use. We are also in the process of evaluating sustainable materials and their usage.
We are also trying to extend the life of our products by manufacturing products with excellent durability during use and turning old tires into retread tires.
Targets
Increase sustainable material*5 content to 40% by 2030 and 100% by 2050.
- *5 Toyo Tire Corporation defines sustainable materials as recycled or bio-based raw materials.
Resource recycling initiatives
- Considering the use of recycled carbon black, recycled steel, recycled bead wire and recycled polyester
- Considering the use of biomass-derived synthetic rubber, plant-based oil, rice husk ash silica
- Promoting the sale of retread tires
Main materials
Click here to view the 2021-2025 data on total volumes of raw materials and sustainable material content.High-quality Toyo Tires brand even for retread tires
The collection and recycling of used tires is an important issue for resource recycling in the tire industry. The Toyo Tire Group is striving to expand the use of retread tires as a way to address this issue.
A retread tire is a recycled used tire whose tread rubber (the rubber section that comes into contact with the road surface) has been replaced. With the exception of the tread rubber, the other parts of the tire are reused, which not only saves resources compared to new tires but also reduces CO2 emissions at the production stage.*6 The energy-saving qualities can be further enhanced by using and managing them in conjunction with fuel-efficient tires. Thanks to these environmental performance features, retread tires are recognized as designated procurement items under Japan’s Green Purchasing Law.
The Group manufactures and supplies durable, high-quality tires, and users also rate our retread tires highly.
The usage history for the base tire of a retread tire is different for each tire. We supply tires that customers can use with peace of mind by building a detailed inspection system that spans the selection through to the pre-shipment of base tires and includes such checks as high-voltage inspections of damage conditions, inspections of the interior of the tires that cannot be detected from the outside, and durability checks of finished products.
We are helping promote resource recycling in the transportation industry by encouraging the spread of high-quality retread tires.
- *6 Assuming CO2 emissions from the manufacturing of new tires of 100%, CO2 emissions from retread tires are much lower at 64%. (Source: Japan Retreaders’ Association)
Number of retread tires produced (Toyo Tires branded)
Click here to view the number of retread tires produced from 2021 to 2025.How we produce retread tires
There are two ways of retreading tires: (1) a remold method in which tread rubber with no pattern is attached to a base tire, which is then placed in a mold, vulcanized and imprinted with a pattern, and (2) a pre-cure method in which patterned tread rubber is attached to a base tire, which is then vulcanized in a vulcanizer. We use high-grade technology to produce tires using both methods.
Reducing and properly disposing of waste
Goal:Maintain 100% recycling rate (achieved end-December 2018)
Unit: Direct recycling volume*7/total volume of waste × 100
- *7 Amount of waste diverted directly to waste disposal operators for recycling (excluding direct landfill volume, in-house incineration volume, and outsourced incineration volume)
Fiscal 2025 result: 100% recycling rate
The Toyo Tire Group forms contracts with certified business operators to reduce risks such as the illegal dumping of industrial waste. The results of on-site inspections of contractors are shared across our offices to check whether there are any related issues. If local regulations permit, we also use publicly available information as one way of checking any issues.
We conduct various training sessions at the monthly meeting for environmental officers at each office to inform officers of any illegal dumping incidents and the results of safety evaluations at certified business operators, demonstrate how to conduct on-site inspections using publicly available information, and promote the usage of electronic manifests.
At our factories in Malaysia and Thailand, we also work with local environmental authorities to provide training sessions for employees on designated waste.
Preventing chemical pollution
For necessary raw materials for continuous operations within the Group, we manage chemical substances in accordance with the laws and regulations of each market in which we operate and our business partner’s guidelines.
For instance, we have strictly managed the use, storage and disposal of specified chemical substances in Japan based on the Chemical Substances Control Law (CSCL). In accordance with the Pollutant Release and Transfer Register (PRTR) system, we assess the amount of targeted chemical substances emitted or moved and register with the relevant authorities. When transferring or providing other organizations with targeted chemical substances, we provide those organizations with a safety data sheet (SDS) in accordance with the SDS system stipulated by the CSCL. We also implement any necessary responses to European Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) regulations, the Global Automotive Declarable Substance List (GADSL), or revisions in business partner’s lists of managed chemical substances.
We are working to maintain a 50% or higher reduction in VOC emissions compared to 2000 levels and continue to reduce them in accordance with the Japan Rubber Manufacturers Association’s voluntary action plan on reducing VOC emissions. The plan covers 17 typical substances used in the rubber industry, with rubber solvents constituting over 60% of the Group’s emissions. We have reduced VOC emissions by roughly 80%, far exceeding our goal, but will formulate specific plans for improving manufacturing methods and processes in efforts to reduce emissions even further.
We manage fluorocarbons, which greatly impact ozone layer depletion and global warming, in accordance with Japan’s Fluorocarbon Emission Control Law, and control leakage at less than 1,000 tCO2.
Volumes of PRTR substances handled, released and transferred
Click here to view the 2021-2025 data on the volumes of PRTR substances handled, released and transferred.Ozone-depleting substance emissions
Click here to view the 2021-2025 data on the emission of ozone-depleting substances.VOC control targets and results
- Control targets:Reduce volatile organic compound (VOC) emissions by 50% from 2000 baseline and continue the efforts
- Applicable operations:Toyo Tire Corporation (Sendai Plant and Kuwana Plant), Fukushima Rubber Co., Ltd. and Ayabe Toyo Rubber Co., Ltd
- Unit of control:VOC emission volumes
- Fiscal 2025 result:81.2% reduction from fiscal 2000 baseline
