Partnership with Business Partners

Promoting Sustainable Procurement

Creating a supply chain that supports sustainable procurement is indispensable for continuing to ensure a stable supply of raw materials with the quality and volume to support the growth of TOYO TIRE. Sustainable procurement means that we work toward resolving social issues throughout the entire supply chain, from production to consumption, and aims for sustainability in society.
Because this is an urgent high priority issue for the Group, we have established a company-wide working group (WG) and discuss action plans, which include orientation, goals, and targets. The WG brings together the responsible parties in related business organizations, the discussed action plan is approved by the Executive Committee (chairperson: President), which the Board of Directors delegates authority to, and the plan is spread to all companies and organizations in the Group.

CSR Procurement Guidelines

To work toward resolving social issues throughout the entire supply chain, from production to consumption, we have established the “TOYO TIRE Group CSR Procurement Guidelines.”
The contents of the guidelines are periodically revised based on the demands of society and changes in the business environment. In the 2019 revisions, we added a policy concerning the sustainable procurement of raw materials (especially natural rubber).
Following the revision in the Guidelines, in FY2019 we invited 60 business partners in Japan to a briefing session. We also shared the content of the Purchasing Policy (on sustainable purchasing of natural rubber, in particular) individually with the Group’s key natural rubber suppliers to help them to internalize the Policy.
We will also address due diligence (analyze the risks in the supply chain and by providing these results as feedback to our business partners, improve the explicit and potential negative impacts) based on the content of the self-assessments.
In addition, we have a reporting hotlines as Grievance Mechanism for business partners to report their concerns regarding CSR procurement initiatives, and are spreading awareness about this hotline at briefing sessions. In FY 2019, there were no reports from business partners to the reporting hotline.

TOPIC
Briefing on the Revised CSR Procurement Guidelines
Goal 12

Toyo Tire Corporation invited 60 suppliers in Japan with whom it does regular business to a briefing session on the latest version of the Toyo Tire Group CSR Procurement Guidelines, which were revised in January 2019.
On this occasion, the participating suppliers were updated on the business environment that the Toyo Tire Group now finds itself in and the impact that its business activities have on the environment and society, as well as sustainable procurement activities at which the Group aims. Within a limited time, we were able to show the suppliers that the development of a sustainable supply chain is one of the key programs of the Group’s endeavor to promote sustainability.
Going forward, the Toyo Tire Group will provide as many opportunities as possible to communicate with global suppliers so that we can work together to realize sustainability in the mobility industry.

  • Briefing on the Revised CSR Procurement Guidelines

International collaboration on the sustainable procurement of natural rubber

In the future, being able to procure a stable supply of natural rubber is a particularly important management issue for the Group, which uses natural rubber as the main raw material for manufacturing. Meanwhile, the natural rubber industry faces social issues, such as deforestation at production sites and infringement of the rights of local residents, and there is a worldwide movement to achieve sustainable procurement of natural rubber by resolving these issues.
Since 2016, we have endorsed the aims of the “Sustainable Natural Rubber Initiatives (SNR-i) *” proposed by the International Rubber Study Group (IRSG), and we have promoted CSR procurement while gaining the understanding of our business partners. In addition, we also participated in the “Global Platform for Sustainable Natural Rubber (GPSNR) **,” a new framework launched in 2018 by the Tire Industry Project (TIP), a project of the World Business Council for Sustainable Development (WBCSD). The Sustainable Natural Rubber Procurement Policy, which has been added to version 3 of the Toyo Tire Group CSR Procurement Guidelines, respects the Sustainable Natural Rubber Principles by the Global Platform for Sustainable Natural Rubber (GPSNR).
In FY2019, we sent the new guidelines to all primary supplies of natural rubber (natural rubber processing services) that we work with to solicit their understanding of our new procurement policy and their cooperation with sustainable procurement. We also visited some of our largest natural rubber suppliers at their sites to compare notes on how we can build a sustainable natural rubber supply chain. The suppliers we visited this time account for approximately 80% of our total purchase of natural rubber (by volume).
Through international initiative or our own value chain, we will work closely with our stakeholders to create a sustainable natural rubber supply chain.

  • * Initiatives with the aim to support the improvement of productivity, enhancing quality, support forest sustainability, water management, and to demonstrate the highest respect for human and labor rights across the natural rubber supply chain.
  • ** A platform that aims for production and use of natural rubber around the world to be conducted in a method that considers the natural environment and social issues, going beyond the norms of the industry.

Response to the Conflict Minerals Issues

Conflict minerals refer to tin, tantalum, tungsten, and gold which are produced in conflict areas such as Central Africa. In Europe and North America, the law requires that the supply chain of minerals be subject to due diligence and other procedures since purchasing them could finance the local armed forces that propagate conflicts and violations of human rights.
We conduct thorough investigations by tracing all the way back along the supply chain to refining companies to determine whether the materials or products supplied to us contain conflict minerals from the relevant countries, in cooperation with our customers and suppliers.