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Toray Group’s Sustainability Promotion Efforts
Message from the Corporate Vice President for Sustainability
Tsuyoshi TominagaCorporate Vice President,Corporate Sustainability Strategic Management Division,
Toray Industries, Inc.
As the Corporate Vice President in charge of the Corporate Sustainability Strategic Management Division, I will make every effort to advance our sustainability initiatives in order to contribute to the sustainability of society, while working to achieve both sustainable growth and enhanced corporate value for Toray Group.
Toray Group has positioned its corporate philosophy, “Contributing to society through the creation of new value with innovative ideas, technologies and products,” as the foundation of its management, and based on this philosophy, is working to create long-term value.
Marking the major milestone of our 100th anniversary, we established TORAY VISION 2050, which sets out the world that Toray envisions in 2050; TORAY Challenges 2035, our long-term management strategy; IGNITION 2028, our medium-term management program; and the Toray Sustainability Principles, which serve as the foundation for our sustainability initiatives.
In order to achieve sustainable growth as a highly profitable company that contributes to society, we have adopted the “environment” and “people” as particularly important perspectives of our sustainability initiatives.
From the perspective of the environment, in addition to reducing greenhouse gas (GHG) emissions, we are working to reduce the environmental impact associated with our business activities through initiatives such as promoting a circular economy and contributing to the preservation and restoration of biodiversity and natural capital.
From the perspective of people, under our people-centric management approach, we are advancing initiatives that emphasize human capital, as well as foundational efforts related to safety and disaster prevention, quality and safety, supply chains, and communication with stakeholders, with the aim of creating an environment in which each individual can fully demonstrate their abilities.
In addition to these initiatives, we aim to enhance economic value by promoting businesses that contribute to the environment and businesses that contribute to people as means of benefiting society through our corporate activities.
We have defined four areas as key sustainability focuses that benefit the environment and people. The first three relate to the environment, namely addressing climate change (carbon neutrality: CN), achieving a circular economy (CE), and reducing our impact and dependency on natural capital (nature positive: NP). In relation to people, we aim to help create a society where people can live healthy, safe, and comfortable lives (Well & Comfort Life: WL1).
As a materials manufacturer, Toray Group recognizes that contributing to society through its business activities is of critical importance. Accordingly, we will work to further strengthen the alignment between initiatives in each of the CN, CE, NP, and WL areas and our businesses, while advancing our growth strategy and value creation.
- 1 Well & Comfort Life is our proprietary term for businesses that support safety, health, and comfort in people’s lives.
Basic Policy for Sustainability Activities to Achieve TORAY VISION 2050
Four areas to promote sustainability through business activities
Toray Sustainability Principles
To further expand and advance its sustainability activities, Toray Group has integrated, expanded, and evolved its former CSR and sustainability initiatives, establishing the Toray Sustainability Principles.
These principles serve as the fundamental code of conduct for sustainability activities.
Toray Sustainability Principles
| Principles | Basic Approach | Implementation Leader | Relevant Depts. | |
|---|---|---|---|---|
| － | Solving Social Issues Through Business Activities | Through continuous innovation, we will provide solutions to various social issues through our business activities, contribute to the sustainable development of society, and strive to create value. | General Manager of Corporate Sustainability Strategic Management Div. | Corporate Sustainability Strategic Management Div. |
| Ｅ | Reducing Environmental Impact | To achieve carbon neutrality, a circular economy, and nature positivity, we will reduce environmental impact across our own operations and the entire supply chain. | General Manager of Manufacturing Div. General Manager of Engineering Div. |
Environment & Safety Dept. Second Engineering Dept. |
| Ｓ | Thorough Safety and Disaster Prevention | In all processes from raw material procurement to product manufacturing, supply, and disposal, we will protect the health and safety of society and our employees, and work to prevent disasters. | General Manager of Manufacturing Div. | Environment & Safety Dept. |
| Product Quality and Safety | We will strengthen our quality assurance and product safety management systems and provide high-quality, safe, and reliable products. | General Manager of Quality Assurance Div. | Quality Assurance Planning & Administration Dept. | |
| Resilient Supply Chain | In cooperation with suppliers, contractors, customers, and logistics providers, we will work to build and maintain a resilient supply chain that supports environmental preservation and respects human rights. | General Manager of Purchasing & Logistics Div. | Purchasing & Logistics Div. | |
| People-Centric Management | With autonomy, embracing challenge, and co-creation as key words, we will embrace diverse human resources and values, develop talent and organizations that can adapt to change, and foster engagement with the Toray philosophy and the development of fulfilling careers. We will strive to both maximize corporate value and increase employees’ sense of well-being. Respect for human rights is an indispensable foundation of corporate management, and we will work to raise awareness and understanding of human rights. | General Manager of Human Resources Div. | Human Resources Div. | |
| Communication | We will actively, fairly, and clearly disclose corporate information and maintain management transparency. We will appropriately disclose information to all stakeholders and promote dialogue and collaboration. | General Manager of Corporate Communications Div. | Corporate Communications Div. | |
| Ｇ | Governance and Resilient Management Foundation | We will strengthen governance and continuously review management systems and frameworks to enhance transparency and operational efficiency, thereby strengthening the management foundation that supports sustainable growth. | General Manager of Corporate Strategic Planning Div. | Corporate Strategic Planning Div. |
| Risk Management | We will identify and analyze risks on an ongoing basis and strive to reduce and prevent them. In the event of a crisis that could significantly impact our business activities, we will respond swiftly and appropriately to prevent escalation and work toward prompt resolution and a return to normal operations. | General Manager of General Administration, Legal & Risk Management Div. | Risk Management Group, General Administration, Legal & Risk Management Div. | |
| Ethics and Compliance | To earn the trust of society, all officers and employees will consistently act with fairness, high ethical standards, and a strong sense of responsibility, and will thoroughly comply with relevant laws, regulations, and corporate rules. | General Manager of General Administration, Legal & Risk Management Div. |
Compliance Dept. | |
Sustainability Promotion Structure
Toray Industries, Inc. has established a structure for group-wide promotion of sustainability initiatives under the supervision of the Board of Directors.
As part of this group-wide structure, the Corporate Sustainability Strategic Management Division, an organization directly under the President, plays a central role in driving sustainability initiatives across the Group.
Within this framework, projects and working groups are established to examine and promote initiatives in the areas of CN, CE, NP, WL, and next-generation businesses, and the concepts set forth in the Toray Sustainability Principles are translated into concrete measures.
Each project is headed by the General Manager of the Corporate Sustainability Strategic Management Division, who works in collaboration with various functions to address sustainability-related issues across the entire Toray Group. These functions include governance, plants, facilities, and production; safety, health, and environment; risk management; human rights and human capital; purchasing; communications; and R&D.
Matters related to project activities are discussed by the Sustainability Steering Committee, chaired by the President.
In addition, when necessary, important sustainability-related policies and agenda items are also deliberated by the Executive Committee, which serves as a company-wide decision-making body that supports the Board of Directors.
The Board of Directors receives progress reports on the status of these initiatives at least once a year and provides appropriate oversight and decision-making.
Relationship between the Sustainability Promotion Structure and the Toray Sustainability Principles
Sustainability Targets
Based on the Toray Sustainability Principles, Toray Group has established 40 Sustainability Targets linked to the medium-term management program. The Group is promoting initiatives to achieve these targets through steady execution and progress monitoring across the entire organization.
Sustainability Targets
| Sustainability Principles | Targets and Indicators | Medium-Term Management Program “IGNITION 2028” (FY Targets) |
Long-Term Management Strategy “TORAY Challenges 2035” |
|||
|---|---|---|---|---|---|---|
| FY 2026 | FY 2027 | FY 2028 | FY 2030 | FY 2035 | ||
| Solving Social Issues Through Business Activities | Contribution to GHG reduction2 compared to FY 2024 |
― | ― | ― | 1.5-fold | ― |
| Reduction of Scope 3 (Category 1) emissions compared to FY 2024 |
― | ― | ― | 20% reduction | ― | |
| Percentage of recycled resources used in core polymers | ― | ― | ― | 20% | 30% | |
| Contribution of Toray water treatment products compared to FY 2013 |
― | ― | ― | 3.5-fold | ― | |
| Revenue from products contributing to carbon neutrality | ― | ― | ― | 550 billion yen | ― | |
| Revenue from products contributing to circular economy | ― | ― | ― | 300 billion yen | ― | |
| Revenue from products contributing to nature positive | ― | ― | ― | 150 billion yen | ― | |
| Revenue from products contributing to Well & Comfort Life | ― | ― | ― | 1,000 billion yen | ― | |
| Reducing Environmental Impact | Reduction in GHG emissions (absolute amount) compared to FY 2013 |
― | 20% reduction | 35% reduction | ||
| Reduction in GHG emissions (per unit of revenue) compared to FY 2013 |
― | ― | 48% reduction | 50% reduction | ― | |
| Reduction in water usage (per unit of revenue) compared to FY 2013 |
― | ― | 46% reduction | 50% reduction | ― | |
| Reduction in VOC emissions compared to FY 2000 |
― | ― | 82% reduction | ― | ― | |
| Increase in solar power generation capacity compared to FY 2024 |
― | ― | 30% increase | ― | ― | |
| Waste recycling rate | At least 87% by FY 2028 | ― | ― | |||
| Thorough Safety and Disaster Prevention | Number of major accidents | 0 | 0 | 0 | ― | ― |
| Achievement for world's best standard for safety management (lost time injury frequency rate) |
No more than 0.05 | No more than 0.05 | No more than 0.05 | ― | ― | |
| Number of fire and explosion accidents | 0 | 0 | 0 | ― | ― | |
| Number of environmental accidents | 0 | 0 | 0 | ― | ― | |
| Product Quality and Safety | Number of product accidents | 0 | 0 | 0 | 0 | 0 |
| Quality and product safety audit implementation rate (%) | 100 | 100 | 100 | 100 | 100 | |
| Implementation rate of training to bolster quality assurance (%) | 100 | 100 | 100 | 100 | 100 | |
| Resilient Supply Chain | Percentage of suppliers consenting to Toray Group CSR Procurement Guidelines | 95% by FY 2028 | ― | ― | ||
| Implementation rate of due diligence for health and safety, human rights and labor, and environmental risks | 70% | 80% | 90% | ― | ― | |
| Reduction rate of CO₂ emissions intensity in logistics compared to previous fiscal year | 1% | 1% | 1% | ― | ― | |
| Percentage of sites where mitigation measures for major risks have been completed | 90% | 95% | 100% | ― | ― | |
| People-Centric Management | EX Score™3 (engagement score) | Year-on-year improvement | Year-on-year improvement | At least 70 | At least 70 | At least 70 |
| Percentage of women in managerial positions | Year-on-year improvement | Year-on-year improvement | Year-on-year improvement | At least 10% | Percentage of women employees (overall) | |
| Percentage of women among new graduate hires | Maintain at least 35% | At least 35% | At least 35% | |||
| Succession coverage rate for key positions | Maintain at least 150% | At least 150% | At least 150% | |||
| Number of participants in management talent development programs for national staff4 | At least 100 annually | At least 100 | At least 100 | |||
| Long-term absenteeism rate | No more than 0.40% | No more than 0.40% | No more than 0.40% | |||
| Communication | Interviews with key investors in which management participates (number) | 120 | 120 | 120 | 120 | 120 |
| News releases (number) | 150 | 150 | 150 | 150 | 150 | |
| Beneficiaries of educational support activities (number) | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | |
| Governance and Resilient Management Foundation | Evaluation score for internal control systems | 90% | 90% | 90% | ― | ― |
| Risk Management | Risk reduction activities for priority risks | Qualitative target | ― | ― | ||
| Evaluation by external institutions / clarification of medium- to long-term issues | Qualitative target | ― | ― | |||
| Ethics and Compliance | Number of major violations of laws or ordinances | 0 | 0 | 0 | ― | ― |
| Group companies implementing internal legal audit | 100% | 100% | 100% | ― | ― | |
| Implementation rate of legal and compliance training programs | 100% | 100% | 100% | ― | ― | |
- 2 The calculation method for contribution to GHG reduction has been revised, and the fiscal year 2030 target is now based on a multiple approach (i.e. 1.5-fold increase).
Contribution to GHG reduction is calculated and estimated with reference to guidelines such as those of ICCA and WBCSD, based on assumptions (including the treatment of recycling), scenarios, and supporting data deemed appropriate for each product, taking into account the potential GHG emission reductions generated across the entire value chain associated with the use of Toray products. - 3 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., the external research agency that conducted the employee survey for the Group.
- 4 National staff: Locally hired employees at Toray Group companies outside Japan
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