Long-Term Management Strategy “TORAY Challenges 2035”
— Weaving Science into Society
Guided by the belief that “corporations are public institutions of society,” the Toray Group has, since its founding in 1926, spent a century creating innovative, advanced materials and products while expanding its businesses. All this progress has been guided by our Corporate Philosophy, “Contributing to society through the creation of new value with innovative ideas, technologies and products.”
As social structures and the business environment reach a major turning point, addressing technological innovation, environmental and resource constraints, and industrial and geopolitical risks strongly requires companies to make management decisions from a medium- to long-term perspective.
For the Toray Group to remain essential to society and continue growing sustainably, the ability to continuously implement technological innovations in society and the management judgment to turn change into opportunity will become even more critical. “TORAY Challenges 2035” is the Toray Group’s long-term management strategy looking ahead to the next 10 years, outlining our “vision for 2035” and the management direction for achieving it.
The World the Toray Group Envisions －Weaving Science into Society
“Weaving Science into Society” is a long-term guiding principle that defines the Toray Group’s role as a materials industry.
“Weaving” captures the Toray Group’s unique approach: going beyond just providing technologies and products, to link social issues and needs with the power of science, and transform them into indispensable value.
“Science” represents a broad concept that includes not only materials science but also chemistry, physics, and engineering, as well as know-how, processes, data, and marketing. It also expresses the source of the Toray Group’s competitiveness.
“Into Society” expresses the idea that the products and services the Toray Group creates through the power of science generate genuine value only when they are put into use in society, help to solve customers’ issues, and enrich people’s lives.
Long-term initiatives to achieve the ambition
In a highly uncertain business environment, the Toray Group aims to be a highly profitable company that applies the power of materials and science to society and contributes to the realization of a world that embraces the environment, people, and society. We will establish a business foundation that enables growth investments in terms of return on invested capital and financial strength, strengthen our management foundation, and continue to take on new challenges for the next era by implementing five long-term management strategies aimed at maximizing corporate value.
Initiative 1: Achieve steady growth and create new momentum in next-generation markets
Along with expected steady growth in sustainability sectors like decarbonization, resource recycling, and water resources, we will take on the challenge of next-generation markets and advanced fields, including semiconductors, space and defense, next-generation energy, and healthcare. By creating market-driven innovation and providing value leveraging advanced materials, we will address social issues while pursuing sustainable growth, delivering on “Weaving Science into Society.
Initiative 2: Transform business models
Incorporate market changes into our business and create new high-added-value models. We will “weave” new market rules and changes — such as tightening regulations, protectionism, and geopolitical shifts — into business models, translating risks into opportunities. Additionally, we will shift from providing materials alone to differentiated, added-value models that combine data, functionality, services, and supply chain capabilities. We will restructure the business portfolio based on ROIC to boost profitability. Moreover, we will aim to achieve differentiation and higher added value by focusing on quality, branding, and traceability.
Initiative 3: Strengthen genba-ryoku (workplace competency) and enhance supply chain resilience
Especially in a rapidly changing environment, the trust we hold within the supply chain and our strong workplace competencies — which simultaneously deliver supply stability, quality assurance, and cost competitiveness — are strengths we must continue to build on. We will reinforce them accordingly. We will diversify procurement, pass on our quality and safety culture, rapidly adapt to customer needs, decarbonize the entire supply chain, and establish reverse supply chains (for collection and recycling).
Initiative 4: Reinforce mechanisms for value creation through digital transformation
We will strengthen productivity and competitiveness, and accelerate the creation of innovation and the shift to higher added-value businesses. Leveraging digital transformation, we will reinforce and evolve the mechanisms that connect various organizations and markets — including R&D (materials informatics), production (automation, predictive maintenance, AI-based inspection), sales and marketing (application and market data), and the supply chain — thereby boosting the creation of new value.
Initiative 5: Strengthen management foundation by focusing on human resources management
Initiatives 1 through 4 outline strategies to enhance economic and social value. Initiative 5 underpins these efforts and builds a solid foundation in times of change. By putting people at the heart of our business, we will bolster organizational capabilities and strengthen in an integrated way our human resource strategy and organizational culture, compliance, economic security, information security, safety and accident prevention, and stakeholder dialogue, respecting them all as foundations for corporate value creation.
FY 2035 Target
| FY 2025 Actual | FY 2035 Target | |
|---|---|---|
| GHG emission reduction*1*2*3 | 23% reduction ［vs FY 2013］ |
35% reduction ［vs FY 2013］ |
| The EX Score™*4 (Engagement Score) |
67.0 | 70 or higher |
| *1: | With the use of renewable energies and other zero emission power sources rising worldwide, the Toray Group aims to employ zero-emission power sources at a rate equivalent to or better than the targets in each country by FY 2030. |
| *2: | Calculated by multiplying the degree of financial control Toray has over the individual subsidiary, in accordance with the GHG protocol, the international standard. |
| *3: | lculations include data for companies that joined the Toray Group in FY 2014 or later. |
| *4: | The EX Score provides an indicator of organizational health. It measures the gap between each individual’s expectations and their actual experiences. The score is maximized when both expectations and actual experiences are high and the gap between them is minimal. EX Score is a registered trademark of HRBrain, Inc. |