E: Environmental

Challenges

  • Conserving water environments
  • Contributing to the circular economy
  • Preventing chemical pollution

Relevant stakeholders

Directly: Local communities, the environment, customers
Indirectly: Shareholders and investors, creditors, NGOs, industry groups

Our policy

In 2021, we formulated our Global Environment Policy. We support international standards and 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 fulfil our responsibilities.

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.

  1. 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 CO₂ emissions, 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.

  1. 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 FY2022 Priority Measures

Measures being developed Targets
Promote the proper disposal of industrial waste
  1. Conduct onsite inspections of industrial waste disposal companies
    (collection companies, disposal companies)
  • Municipalities with compulsory ordinance: 100%
  • Municipalities that require efforts to be made: At least once every two years
  1. Maintain a 100% waste recycling ratio
Promote the disposal of PCB waste

Manage the disposal of PCB waste in accordance with our plans

Confirm environmental issues at all sites and promote corrective measures

Conduct audits, identify issues, and confirm corrections have been made

  • Scope of audit:
    Japan: 26 locations (domestic bases, distributor branches, logistics warehouses)
    Overseas: 4 plants
  • Number of serious identified issues: 0
  • Confirm 100% implementation of corrective measures or reviews
Improve the accuracy of environmental data for disclosure
  1. Improve accuracy to reduce the identification of deficiencies in environmental data (energy, water, waste) during third-party verifications to zero
  1. Expand the scope of environmental data collection (energy, water, waste). Add distributors, logistics warehouses, etc.
Reduce CO₂ emissions

Scope 1 & 2: Aim to reduce emissions by 46% by 2030 compared to 2019 levels and to be carbon neutral by 2050
Scope 3: Aim to help reduce CO₂ emissions per tire by 20% by 2030 compared to 2019 levels

Measures being developed Targets
Reduce the use of water resources

Reduce water withdrawal by 10% over five years
(Base year: 2018, Reduction period: 2019-2023)

Ensure thorough management of hazardous chemical substances
  1. Reduce volatile organic compound (VOC) emissions to the previous year’s level or lower
  1. Comply with all laws and regulations on chemical substances
Promote biodiversity conservation
(Maintain volunteer activities for preserving forestry around company bases, continue to support other organizations, convey environment-related information to educate employees)

Provide workforce support to environmental groups and participate in activities

  • Maintain grants/donations, continue volunteer activities at Sendai Plant and Kuwana Plant, convey information on our Group Environmental Protection Fund to employees at least four times a year

Operational status of environmental management system

ISO 14001 certification at manufacturing sites (as of December 31, 2021)
Number of manufacturing sites: 13 (certification rate: 84.6%)

Responsible Executive (as of April 2022)

Director, Corporate Officer and Vice President of the Quality Assurance, Environment & Safety Headquarters

Activity promotion system (as of April 2022)

  • * Toyo Tire Corporation
Activity promotion system

Grievance mechanism

  • 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

Main resources for promoting activities (2021, within our key business area in Japan)

  • Expenses for preventing pollution of air and water systems: 161 million yen
  • Expenses for recycling resources:489 million yen
  • Expenses for managing environmental activities:86 million 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

Initiative: Conserving water environments

Reducing water risk

The use of water is both indispensable for human life and welfare and a human right recognized by the UN. For that reason, the Toyo Tire Group considers water risks in corporate activities to be a key management issue.

Identifying water-related impacts on business activities (Manufacturing)

We are investigating the type of water security measures that companies should take with reference to the contents of the CDP water questionnaire. We at the Toyo Tire Group use the Aqueduct Water Risk Atlas released by the World Resources Institute’s Aqueduct program to identify water-related impacts on business activities around our manufacturing sites, and we strive to reduce our volume of water withdrawal and discharge by using water more efficiently in line with the magnitude of the impact. The latest assessment confirms that we have currently no operations in areas with a high risk of seasonal fluctuations in water supply, water shortages caused by drought, depletion of groundwater, or not being able to secure drinking water in surrounding locations.
We also confirmed* that, at this time, the Group does not take water from water resources that are considered high value from a biodiversity perspective, such as water areas that experts recognize as being particularly vulnerable or designated protected areas inside and outside Japan, or that are recognized as being of high value and importance to local communities and indigenous peoples. Furthermore, we have no business operations that discharge water into those water areas or water resources. For some influences where it is difficult for the Group to obtain sufficiently accurate information to formulate a report, we are prioritizing areas where water risks may increase going forward and working hard to grasp the current situation.

  • * Identification method: Use the following
    Ramsar Sites Information Service, UNESCO-World Heritage Center, Nature Conservation Areas (Japan’s Ministry of the Environment), natural monuments such as designated cultural properties (Japan’s Agency for Cultural Affairs)

Identifying water-related impacts on business activities (Manufacturing)

Identification method: Assessment by the Aqueduct Water Risk Atlas (World Resources Institute) as of the end of June 2022
Areas assessed: 15 regions where the Group has manufacturing bases
Evaluation results: Water-related impacts in the area surrounding Zhucheng (China) were judged to be extremely high right now due to the sheer number of water users, annual fluctuations in the water supply, and the insufficient development of surrounding wastewater treatment infrastructure. Water-related impacts around Chon Buri Province (Thailand) were also judged to be high due to the sheer number of water users, past flooding of surrounding rivers, and the insufficient development of surrounding wastewater treatment infrastructure. Furthermore, based on 2030 forecasts, water demand was expected to increase 1.4 times from current levels around Zhucheng (China) and Grad Beograd Province (Serbia) and 1.7 times in the Perak state (Malaysia) if stable economic development continues going forward.

Reducing volume of water withdrawal and discharge

Goal:
Aim to reduce the impact of our business activities in waterstressed areas to zero by 2030.
Plan to reduce water withdrawal at our Japanese manufacturing bases by 10% compared to 2018 levels over the five-year period (2019-2023), and conduct detailed assessments of water risks at our manufacturing bases outside Japan to set targets.

The Group mainly uses municipal or other public and private water supply facilities as well as groundwater for our boiler equipment and parts processing facilities, the cooling of production parts, cooling towers and welfare facilitates at our manufacturing bases. We have set voluntary targets for water withdrawal and discharge at each manufacturing site to reflect the scale of each business and the products that they handle. We are also working to improve facilities for circulating and recycling water used in each process as much as possible. In 2021, water withdrawal and discharge at our Japanese manufacturing bases decreased by 11.9% compared to 2019.

Water withdrawals

(Thousand kL)

2019 2020 2021
Total water withdrawals across all regions 3,737.3* 3,399.9* 3,362.8*
By source
Surface water (mountain water) 0.00 19.5* 17.2*
Groundwater 2,726.8 2,511.6* 2,518.8*
Third-party water (municipal or other public and private water supply facilities) 1,010.5 868.7* 826.8*
Total water withdrawals in water-stressed areas 87.2 77.2 87.0
By source
Surface water (mountain water) 0.00 0.00 0.00
Groundwater 86.1 76.1 86.1
Third-party water (municipal or other public and private water supply facilities) 1.10 1.11 0.92
  • * Data verified by a third party.

Note: One of our manufacturing bases in Japan uses water sourced from surface water (mountain water). This was classified as third-party water until 2019, but following a third-party verification in 2020, it was changed to surface water (mountain water).At present, all our water withdrawal is fresh water (water with the total dissolved solids of 1,000 mg/L or less).

Water discharges

(Thousand kL)

2019 2020 2021
Total water discharges across all regions 2,194.8* 2,022.2* 2,014.9*
By destination
Surface water (public water) 1,525.0 1,475.3* 1,487.4*
Third-party water (municipal wastewater treatment facilities) 669.7 546.9* 527.5*
Total water discharges in waterstressed areas (third-party water) 86.9 77.0 86.8
  • * Data verified by a third party.

Note: At present, all our water discharge is fresh water (water with the total dissolved solids of 1,000 mg/L or less).

Water withdrawals

(Thousand kL)

2019 2020 2021
Total water withdrawals across all regions 1,542.6* 1,377.6* 1,347.9*
Total water withdrawals in water-stressed areas 0.22 0.22 0.18
  • * Data verified by a third party.

Managing water discharge impacts at our manufacturing sites

Base Water discharge destinations Water quality management items Regulatory standards
Sendai Plant Public water areas (Gokenbori River) or third-party water (municipal wastewater treatment facilities) pH, BOD, COD, SS, fluorine, boron, zinc, n-Hex(mineral)
 
Water quality load
・BOD 1.66 (t)
・COD 6.03 (t)
Water pollutant concentration
・pH
     Max. 8.0
     Min. 7.4
・BOD(mg/L)
     Max. 4.5
     Min. 0.5
・COD(mg/L)
     Max. 9.2
     Min. 3.4
・SS(mg/L)
     Max. 9.0
     Min. 1.0
Regulatory values
・pH 5.8-8.6
・BOD 120
・COD 120
・SS 150
Kuwana Plant Public water areas (Sakoji River) or third-party water (municipal wastewater treatment facilities) pH, BOD, COD, SS, n-Hex (mineral), nitrogen, phosphorus, fluorine, coliform count, nitrate nitrogen and nitrite nitrogen, ammonia nitrogen, ammonia, etc.
 
Water quality load
・BOD 0.39 (t)
・COD 0.77 (t)
Water pollutant concentration
・pH
     Max. 7.7
     Min. 7.1
・BOD(mg/L)
     Max. 2.0
     Min.<1
・COD(mg/L)
     Max. 4.0
     Min.<1
・SS(mg/L)
     Max. 3.0
     Min.<2
Compulsory regulatory values and regulatory values agreed with local government to prevent pollution
・pH 6.0-8.0
・BOD 8
・COD 8
・SS 10
Hyogo Manufacturing Complex Public water areas (Seto River) or third-party water (municipal wastewater treatment facilities) pH, BOD, COD, SS, n-Hex (mineral), nitrogen, phosphorus, zinc, coliform count, dichloromethane
 
Water quality load
・BOD 0.28 (t)
・COD 0.25 (t)
Water pollutant concentration
・pH
     Max. 8.3
     Min. 6.3
・BOD(mg/L)
     Max. 4.4
     Min. 0.5
・COD(mg/L)
     Max. 7.5
     Min. 0.5
・SS(mg/L)
     Max. 5.9
     Min. 0.5
Regulatory values
・pH 5.8-8.6
・BOD 100
・COD 100
・SS 90

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
  •  * 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
  • Verification period: January 2021 to December 2021
  • Verification criteria: ISO14064-3: 2006, related laws and regulations, and the assurance organization’s protocol
  • Third-party assurance organization: SGS Japan Inc.

Please click here to read more about verification statement.

Initiative: 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.
As part of our efforts to increase the efficiency of raw material use and reduce the volume of final waste, Toyo Soflan Co., Ltd. recycles and reuses 100%* of defective products and wasted pieces (cutoffs from the molding process) generated in the manufacturing of resin products.
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.

  • * Excluding products that use special materials

Resource recycling initiatives

  • Heat recovery from waste incineration
  • Switch from wooden to heavy duty resin pallets
  • Exploring alternatives to specified chemical substances
  • External initiatives for risk assessments of chemical substances, initiatives for addressing tire wear particles and used tires

Main raw materials

(Thousand t)

2019 2020 2021
Total volume of main raw materials 314.0 252.3 306.9
  Volume of renewable raw materials 187.6 148.1 177.7
  Volume of non-renewable raw materials 126.4 104.3 129.2
Ratio of recycled materials in rubber raw materials 1.2% 1.2% 1.2%

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.* 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.

  •  * Assuming CO₂ emissions from the manufacturing of new tires of 100%, CO₂ emissions from retread tires are much lower at 41%. (Source: Japan Retreaders’ Association)

Number of retread tires produced (Toyo brand)

(Thousand tires/year)

2019 2020 2021
Production volume 130.0 126.1 128.7

How We Produce Retread Tires

There are two ways of processing retread 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.

How We Produce Retread Tiresイメージ

Initiative: Reducing waste

  • Goal: Maintain 100% recycling rate (achieved end-December 2018)
  • Management scope: Toyo Tire Corporation (Headquarters, Sendai Plant, Kuwana Plant (tire and automotive parts), Hyogo Manufacturing Complex (Akashi Plant), 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)
  • Unit: Direct recycling volume*/total volume of waste × 100
    •  * Amount of waste diverted directly to waste disposal operators for recycling (excluding direct landfill volume, in-house incineration volume, and outsourced incineration volume)
  • 2021 result: Recycling rate 100%

(Thousand t)

2019 2020 2021
Total weight of non-hazardous waste 31.0 25.7 28.6
Volume of recycled non-hazardous waste 12.2 9.6 11.1
Volume of reused non-hazardous waste 0.06 0.00 0.00
  • Note: Disposal method for non-hazardous waste (general waste, industrial waste): 
    Determined according to information provided by waste disposal contractors

Hazardous waste (Waste requiring special management) Total weight (t)

(t)

  2019 2020 2021
Total weight of hazardous waste (waste requiring special management) 114.4 124.5 127.0

Initiative: 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 currently reduced VOC emissions by roughly 80%, far exceeding our goal, but we will reduce emissions even further by improving our manufacturing methods and processes.
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 1,000tCO₂.

Transporting hazardous waste (substances subject to PRTR law)

  2019 2020 2021
Handling volume 2,978.0 2,592,3 3,011.0
Emissions 164.7 117.1 105.0
Movement volume 88.8 77.9 91.3
  • Note: Disposal method for hazardous waste (waste requiring special management): 
    Determined according to information provided by waste disposal contractors Transportation of hazardous waste (substances subject to PRTR law): Disposed of by the Group

VOC internal management targets and results

  • Internal management target: Reduce VOC emissions by 50% compared to 2000 levels and maintain that level
  • Management scope:Toyo Tire Corporation (Sendai Plant, Kuwana Plant, Hyogo Manufacturing Complex), Fukushima Rubber Co., Ltd., Toyo Soflan Co., Ltd., Ayabe Toyo Rubber Co., Ltd.
  • Unit: VOC emissions
  • 2021 result: 78.8% reduction compared to 2000 levels

Emissions of ozone-depleting substances (ODS)

  2019 2020 2021
ODS emissions (kg, CHF-11 equivalent) 0.06 0.35 0.58
  • *Substance used in the calculation: Hydrochlorofluorocarbon (HCFC)

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

(t)

  2019 2020 2021
NOx emissions 183.1 141.8 154.0
SOx emissions 3.71 2.16 2.67
VOC emissions 573.4 499.9 538.8