G: Risk management

• Challenge
• Our policy
• Responsible executive (as of April 2024)
• Organizational responsibilities
• Significant risks
• Activities

Challenge

Our policy

The risks that are expected to have an impact on the Group’s business activities are managed by the organizational function or meeting body responsible for each risk. We recognize that, as the Group’s business activities and supply chain expand globally, a wide variety of risks become more intricately linked and complex.
For that reason, in 2023, we decided to restructure our company-wide risk management system to enable us to position risks that would have a significant impact on management if they were to occur or materialize as “significant risks,” and prioritize the forming of concentrated and strategic measures to counter these risks.
We have also established risk management regulations, which guide the supervisory departments responsible for each issue in identifying, evaluating and addressing risk at every stage of our business activities, as well as in regularly performing a cycle of monitoring and review.

Responsible executive (as of April 2024)

Corporate Officer and Vice President of the Corporate Headquarters

Organizational responsibilities

Under the jurisdiction of the Crisis Management Committee, we have established a risk management team that performs quarterly monitoring of risk management at each Group company though special committees such as the Sustainability Committee, as well as all Toyo Tire Corporation headquarters and administrative departments.

Significant risks

We define significant risks as those that would have a serious impact on both current and future Group business activities, and have made them of top priority to address. Significant risks will be reviewed as necessary in light of changes in the external environment or Group business conditions.

Activities

The Corporate Headquarters identifies risks associated with climate change and human rights risks in all our business activities, including our supply chain, and assesses their significance, as well as formulates countermeasures in cooperation with relevant divisions and reports on such activities to the Sustainability Committee. The Crisis Management Committee, which oversees company-wide risk management, investigates and confirms the effectiveness of the risk management activities conducted by various special committees and organizational functions within the Group, including any measures taken to counter the above-mentioned type of ESG risks, on a quarterly basis. The Crisis Management Committee regularly reports the results of its investigations to the Executive Committee and the Board of Directors.