• Sustainability Management Policy
• Sustainability Policy
• Activities for sustainability
• Sustainability promotion system and cycle
• Our philosophy and Sustainability
• Stakeholder Engagement
• TOYO TIRE‘s SDGs

Sustainability Management Policy

• “Sustainability Management Policy” for achieving medium- to long-term value creation

Sustainability Policy

Strongly aware that every action in our business is linked to society and the future, we will seek to fulfill our purpose by solving social issues through our corporate activities and creating social value.

1. Identity based on our corporate philosophy

   View all sustainability themes in connection with our philosophy and act in line with our corporate identity

2. Medium-to long-term view

   Identify the company’s opportunities and important risks as medium- to long-term material issues and address them

3. Contribution to a sustainable society

   Help solve social issues through our corporate activities based on our belief in social sustainability as a prerequisite for business growth

4. Value creation cycle

   Establish a cycle of increasing product and service value and investing profits in sources of further value creation

5. Stakeholder collaboration

   Collaborate with our supply chain, align with relevant organizations, and increase corporate value through dialogue

Activities for sustainability

• Learn more about how we identify material issues

Sustainability promotion system and cycle

In April 2021, we established the Sustainablity Committee — chaired by the President — under the jurisdiction of the Executive Committee, with the goal of strengthening and promoting our sustainability management. This committee deliberates and decides upon matters related to Group sustainability strategy and, following internal regulations, presents them to the Executive Committee for report to the Board of Directors. These decisions are then executed through each function in cooperation with other special committees, and progress is managed regularly. We have also formed cross-organizational task forces to investigate and promote specific targets and activity plans related to sustainability initiatives.

Our philosophy and sustainability

Our Philosophy was published in 2017, replacing the old Philosophy statements we had up until then. This change was prompted by the issue of data fabrication that came to light in 2015 concerning the seismic isolation rubber business and anti-vibration rubber business. As the Company faced this existential crisis, the management team responded to the need to take another, serious look at our social mission and responsibility so that we can reemerge as a company that society needs and relies on, and decided, as the first step, to reform the company culture and realign the values shared by all officers and employees by reviewing and reconstructing our Philosophy.
When we launched the Medium-Term ’21 Plan, we made clear that our purpose as a company was to make our Philosophy a reality, and that the management plan was a means of achieving it.
When we started working on the shift toward sustainability management presented in the Medium-Term ’21 Plan, this shared understanding provided a basis for our discussions of policies to promote sustainability and of the material issues for the Company, enabling us to keep to the essence of the ideas contained in the Philosophy statements such as contributing to the enrichment of society through our business and serving and caring for our stakeholders. One of our key focuses was to ensure that the way we viewed and considered was always connected to the Philosophy so that we stayed true to our uniqueness, and through four months of these discussions, we identified our material issues. We strive to embody our Philosophy through the efforts to address these material issues.

Stakeholder Engagement

We consider the impact on the evaluation and decision-making of all stakeholders and examine the priority issues.
The significance of the Group in society is that we not only solve the issues requested by our stakeholders, but we also create surprise and new discoveries for society and contribute to enriching society. Through our opportunities for engagement with stakeholders, we strive to be accountable by communicating information accurately and clearly.
And we also check if we are providing business partners and customers with not only products and services, but also the excitement that exceeds their expectations through our various work.

List of stakeholder groups

Value chain	Affected stakeholders
	Directly	Indirectly
Raw materials /Purchasing	Business partners (supplier*1)	Shareholders & Investors, creditors, local communities, NGOs, government, business organizations*2, global environment
R & D	Employees, Co-researchers & Joint developers, Business Partners (Car Manufacturers)
Manufacturing	Employees
Logistics	Employees, Business Partners (Logistics)
Sale	Employees, customers (car manufacturers, dealers)
Use /Waste recycling	Customers

• *1 Main supply chain elements: natural rubber farmers and wholesalers, synthetic rubber manufacturers, petrochemical product producers
• *2 TOYO TIRE or one of our group companies belongs to the following trade associations;

Engagement policy

Through Engagement

• Responding to changes in the business environment and social needs will create delight and surprise in our stakeholders beyond their expectations.
• We recognize the impact of our business on society and will share the rich blessings from the earth with our stakeholders into the future.
• We will fulfill our responsibility to respect human rights through our business activities and aim for a society in which all stakeholders can play an active role with diverse values.
• The entire supply chain will engage with diversifying social issues, as well as achieve sustainable procurement.
• Through dialogue and collaboration with stakeholders, we aim to resolve social issues and develop local communities by making use of the Group’s resources.
• As the responsibility of the company to all of its stakeholders, we will ensure safety and security in our business activities.
• We recognize our responsibility toward our various stakeholders and will ensure transparency in management and will pursue fairness within the organization.

Engagement approach example

Customers	Providing product information at consultation counters / sites, satisfaction surveys, tours / meetings, etc.
Business partners	Supplier briefing sessions, questionnaires, consultation / reporting counters, information exchange by visiting, etc.
Employees	Labor-management consultations, in-house newsletters, consultation / reporting counters, etc.
Local community	Community contribution activities, business site tours, interviews and meetings with local governments and NGOs / NPOs
Shareholders, investors	General meeting of shareholders, investor interviews / meetings, information provision on IR sites, tours, etc.

External initiatives

We subscribe or endorse to the following initiatives;

TOYO TIRE’s SDGs

With the understanding that achieving a sustainable society is a prerequisite for corporate growth, we have considered across the Group the role we need to play in helping achieve the United Nations SDGs and identified 14 goals that shape our vision for the Group in 2030. We have declared these the Toyo Tire SDGs.
The activities we undertake working towards these goals are an embodiment of Our Vision as set forth in our corporate philosophy, and will lead to achieving Our Mission.

The Underlying Logic of TOYO TIRE’s SDGs