Sustainabilty Management Policy

Sustainability Policy

We are strongly aware that "every part of our corporate activities is connected to society and the future," and we will pursue the purpose of our existence by solving social issues and creating social value through our business.

1. Pursuing the TOYO TIRE style based on our philosophy
   Always connect with our philosophy and make decisions regarding all sustainability themes, leading to the pursuit of uniqueness that is unique to our company.
2. Promotion of medium- to long-term perspective
   Clarify and address the opportunities and important risks posed to the company as materiality from a medium- to long-term time frame.
3. Contributing to a sustainable society
   Based on the recognition that “social sustainability = a prerequisite for business growth,” we strive to solve social issues globally through all corporate activities.
4. Virtuous cycle of value creation
   Establish a value amplification cycle by increasing the value of products and services and investing the profits gained into sources of further value creation.
5. Cooperation and collaboration with stakeholders
   Collaborate and collaborate with upstream and downstream supply chains, collaborate with related institutions and organizations both domestically and internationally, and improve corporate value through dialogue.

Activities toward sustainability (materiality)

M a t e r i a l i t y	Area 1 Value creation	1. Contribute to the realisation of a sustainable mobility society
		2. Support and create a rich mobilty society
	Area 2 The foundation that supports value ctreation	3. Create challenges and job satisfaction for diverse human resources
		4. Continue technological innovation in next-generation mobility
	Area 3 Risk management	5. Pursue decoaronisation in all corporate activities
		6. promote sustainability in the supply chain
		7. Defend the foundations of manufacturing (quality & safety)

 

Sustainability promotion system and promotion cycle

In April 2021, the Company established the Sustainability Committee under the Management Committee with the aim of strengthening and promoting sustainability management, with the president serving as the committee chair. The committee deliberates and decides on matters related to the Group's sustainability strategy, submits them to the management meeting based on internal regulations, and reports to the board of directors. Regarding decided matters, we direct the implementation through each functional organization in cooperation with other specialized committees, and regularly monitor the progress. We will also form a cross-company task force to specifically consider and promote goals and action plans related to materiality initiatives.

Philosophy and sustainability

Society Is:

Today is better and cheaper than yesterday,

Doing the best in each workplace for customers

Our Mission:

We create excitement and surprise that exceeds customer expectations and satisfaction, and contribute to the creation of a prosperous society.

Values ​​that we should have] (TOYO WAY)

Fairness> Act in a selfless and fair manner with the aim of serving society in a fair manner.

Pride> Take great pride in your company, your work, and yourself, and never give up until the end

Subjectivity> Whatever happens, take the initiative in accepting it and working on it yourself.

Independence>  Take the initiative in accepting everything and working on it yourself.

Gratitude>  We will strive to do our best with compassion and gratitude toward people and society, and with sincerity.

The company's philosophy was newly established in 2017, replacing the previous philosophy. The trigger for this was the data fraud issue in the seismic isolation rubber business and anti-vibration rubber business that was discovered in 2015. Facing a situation that could be called a crisis for the survival of the company, the management at the time took seriously the need to ``reexamine our social mission and responsibilities and reinvent ourselves as a company that is needed by society'' and changed our corporate culture. As a first step toward reform, we have decided to reorient the values ​​common to all executives and employees, that is, to review and rebuild our philosophy.

Furthermore, in the announcement of ``Medium-Term Management Plan '21,'' the Company made it clear that ``the reason for our existence is to realize our philosophy, and our management plan is to realize this.''
In working on the shift to sustainability management as set out in the Medium-term Plan '21, we are based on this recognition, and we will continue to work towards ``contributing to society through business'' and ``receiving our stakeholders'', which are included in the words of our philosophy. We held discussions on policies and materiality for promoting sustainability, while capturing the essence of ``contribution and consideration to people.'' We identified materiality after approximately four months of discussions, with one of our policies being to understand and make decisions in connection with our philosophy, and pursue the uniqueness that is unique to our company. We embody our philosophy through these materiality initiatives.

Stakeholder engagement

The purpose of our group's existence in society is not only to solve problems requested by our stakeholders, but also to create surprises and new awareness in society and contribute to a prosperous society. Therefore, we strive to fulfill our accountability by disseminating information about our group accurately and clearly through opportunities for engagement with our stakeholders. Furthermore, in addition to providing products and services, we check to see whether we are delivering excitement that exceeds satisfaction to our business partners and customers (customers and consumers) through each and every job

- List of stakeholder groups

Stakeholders with significant impact
Value Chain	Direct	Indirect
Raw materials/procurement	Business partners (suppliers1)	Shareholders/Investors, Creditors, Local Communities, NGOs/NPOs, Governments, Industry Associations2, Global Environment
Research and development	Employees, joint researchers/developers, business partners (car manufacturers)
Production	Employees
Distribution	Employees, business partners (logistics)
Sales	Employees, customers (automobile manufacturers, dealers)
Use/waste recycling	Customer (consumer)

*1 Main elements of the supply chain: natural rubber farmers/wholesalers, synthetic rubber producers, petrochemical producers
*2 Organizations to which TOYO TIRE belongs:

(One company) Japan Business Federation Japan Automobile Tire Association (JATMA) Japan Rubber Manufacturers Association (JRMA) United States Tire Manufacturers Association (USTMA) American Tire and Rim Association (TRA) European Tire and Rubber Manufacturers Association (ETRMA) European Tire and Rim Technology Association (ETRTO) Malaysia Automobile Tire Manufacturing Industry Group (FMM MATMIG) Thai Automobile Tire Manufacturers Association (TATMA) *However, as a special corporate member China Rubber Industry Association (CRIA) International Rubber Research Group (IRSG) World Business Council for Sustainable Development (WBCSD) Global Platform for Sustainable Natural Rubber (GPSNR) (Public corporation) Japan Philanthropic Association *However, as a supporting member Global Compact Network Japan (GCNJ)

- Engagement policy

Through engagement:

• Understand changes in the business environment and social needs, and create excitement and surprise that exceeds stakeholder expectations and satisfaction.
• Recognize the impact of our business on society and share the earth's rich blessings with our stakeholders into the future.
• We aim to create a society where stakeholders can play an active role based on diverse values.
• Aiming for sustainable procurement by addressing diversifying social issues throughout the supply chain.
• We aim to solve social issues and develop local communities by leveraging our group's resources.
• Ensure safety and security in corporate activities.
• Ensuring management transparency and pursuing fairness within the organization

- Examples of engagement approaches

Customer	Providing product information through consultation desks, websites, etc., satisfaction surveys, tours/meetings, etc.
Business partner	Supplier briefing sessions, questionnaires, consultation/reporting desks, information exchange through visits, etc.
Employee	Labor-management consultation, company newsletter, consultation/reporting desk, etc.
Local Community	Community contribution activities, business site tours, interviews/meetings with local governments and NGOs/NPOs
Shareholders, investors	General meeting of shareholders, investor interviews/meetings, information provision on IR website, tours, etc.

External Initiaties Supported

 

Toyo Tire Sustainable Development Goals

TOYO TIRES and the sustainable growth of society
Expanding opportunities, reducing risk Mission: To create excitement and surprise that exceeed customer expectations and satisfaction and contribute to the creation of a rich society	A society in which no one is left behind