CSR Activity Report (CSR Guideline Activity Reports)

Risk Management

Under normal conditions, assess and analyze risks, and strive to mitigate and prevent them from materializing; and in the event of a crisis that could have a significant impact on management activities, strive 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, 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
Risk Management Committee System

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 at the time by an executive vice president1. 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.
  1. 1 The headquarters is headed by a Senior Vice President (Member of the Board) as of July 2021.
Emergency Quick Response System
Emergency Quick Response System

CSR Roadmap 2022 Targets

CSR Roadmap goals

  1. Strengthen corporate risk management throughout the Toray Group and mitigate risks
  2. Instill greater risk management among employees by rolling out risk management education throughout the Toray Group

Main Initiatives and Key Performance Indicators

KPI
⑴ Follow up on Toray’s priority risks
5-❶
⑵ Conduct periodic risk management (priority risk mitigation activities through a three-year cycle) and routine risk management (observing trends in and outside Japan, and establish a group-wide system to respond to risks that may have a significant impact on management, as identified through research and analysis, as “specified risks”); and in the event of a group-wide crisis, respond appropriately in accordance with the Risk Management Regulations
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⑶ Regarding major earthquakes in Japan, prepare and regularly review business continuity plans for key products, and conduct regular drills to establish a group-wide emergency response headquarters
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⑷ Regarding information security risks, monitor and bolster the contents of communications and enhance education and training on the risk of cyberattacks and information leakage
In addition, starting in fiscal 2021, designate information security risks as part of the fifth three-year set of priority risks for Toray Group, and accelerate more comprehensive initiatives.
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⑸ Provide risk management education
5-❷
  1. Reporting scope : Toray Group
  1. 2 Some group training sessions were postponed to prevent the spread of COVID-19.

Looking to the Future

CSR Roadmap 2022 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.
Based on the CSR Roadmap 2022, with regard to natural disasters, in fiscal 2020 the Group finished formulating a business continuity plan (BCP) that would take effect in the event of a large-scale earthquake. In addition, the Group has included water hazard risks caused by floods or other events in its fifth three-year set of priority risks, to be addressed from 2021 to 2023, in order to scrutinize the risks at each site and take appropriate measures if the risk is high. Since group-wide initiatives are also needed to tackle the risks in information security and global socially responsible procurement, the Group will continue to treat these as priority risks and take action to address them.

Fiscal 2020 CSR Activity Report

Click below on activity reports for fiscal 2020