Fiscal 2019 CSR Activity Report

Risk Management

Governance

Under normal conditions, Toray Group focuses on mitigating risk and preventing crises from occurring. In the event of a crisis, the Group strives to prevent damage from increasing, by bringing the situation quickly under control and normalizing conditions with a prompt and appropriate response.

Basic Approach

Toray Group regularly identifies potential management risks affecting The Group’s management activities in order to mitigate risks and seeks to prevent a crisis. In addition, the Group strives to prevent damage from spreading and to promptly control and normalize the situation by ensuring quick and appropriate responses using the emergency quick response system it has established.

Structure

The risks affecting Toray Group are constantly changing, and the Group recognizes the critical importance of reinforcing its system for responding to risks that materialize suddenly due to changes in the surrounding environment and for responding promptly when crises do occur. To this end, in April 2018, Toray Industries, Inc. established a dedicated team to communicate closely with the Board of Directors and top management and to pursue risk management as an integral part of management strategy. This team manages overall risk under normal conditions and ensures a quick response when crises do occur. The general manager of the Corporate Strategic Planning Division regularly reports on the status of risk management to the Board of Directors and makes certain to inform the Board when a critical issue or emergency arises.

Establishment of Risk Management Committee

In May 2018 Toray Industries established the Risk Management Committee, which is chaired by the general manager of the Corporate Strategic Planning Division (an executive vice president), tasking it with reviewing, discussing and promoting shared awareness of risk management across the entire Toray Group. This committee primarily carries out priority risk mitigation activities as part of regular risk management. In addition, the Overseas Crisis Management Committee and local crisis management committees, which manage employees’ overseas travel under normal conditions and compile information on overseas risks, have also been made subordinate to the Risk Management Committee. The committee keeps the Board of Directors regularly informed about the contents of its discussions and reporting matters.

Risk Management Committee System (As of June 2019)
Risk Management Committee System (As of June 2019)

Strengthening the Emergency Quick Response System

Toray Group has established Risk Management Regulations, a set of clear fundamental principles that form the basis of a company-wide response in the event of a major crisis. The Group works to ensure the thorough implementation of these rules when required. Moreover, the Group reviews the rules as appropriate to prepare for new risks that emerge due to changes in the social environment.
In order to ensure quick management decisions especially in the event of a crisis, Toray Group has clarified the reporting channel from a department where a crisis has occurred, covering group companies in and outside of Japan. The Group recognized that the rapid spread of COVID-19, which emerged at the end of 2019, posed a serious risk to the health and safety of employees and the Group’s business continuity. In accordance with its rapid response framework, the Group established a group-wide emergency headquarters on February 7, 2020, headed by an executive vice president. The emergency headquarters is steering the Group’s response to COVID-19, implementing the following measures in accordance with the pandemic measures and directives issued by local and national governments in countries where the Group operates.

  • Planning for and executing measures to secure the safety of employees
  • Monitoring the health status of employees worldwide including in Japan, and responding appropriately to positive cases of COVID-19
  • Providing appropriate assistance to Group companies, etc.
Emergency Quick Response System (fiscal 2019)
Emergency Quick Response System (fiscal 2019)

CSR Road Map Targets and Results

Strengthen corporate risk management throughout the Toray Group and mitigate risks

■KPI
Group companies implementing continuous review of risk management (%)
■Reporting scope
Toray Group
■Target in fiscal 2019
100%

Result in fiscal 2019

100%

Instill greater risk management among employees by rolling out risk management education throughout the Toray Group

■KPI
Group companies implementing risk management education (%)
■Reporting scope
Toray Group
■Target in fiscal 2019
100%

Result in fiscal 2019

100

Looking to the Future

The road map goals are: (1) strengthening corporate risk management throughout Toray Group and mitigating risks; and (2) instilling greater risk management awareness among employees. To achieve these goals, the Group will periodically and routinely identify latent risks in management activities, prevent and mitigate risks, and prevent crises from ever occurring.
During the period of the 6th CSR Road Map, the Group established risk management regulations to form the basis for the risk management activities of group companies in and outside of Japan, and strengthened these activities. Additionally, the Group enhanced its information security including BCP for earthquakes and the cyberattack response, through the implementation of priority risk mitigation activities.

Activity Reports

Click below on activity reports for fiscal 2019