Sustainability Management

Policy and approach

Approach

Since being founded in 1882 as Japan's first large-scale spinning mill company in the private sector, Toyobo group has addressed a range of issues as a good member of society through the supply of clothing fibers. We have also expanded and grown with the times and contributed to solving social issues with a focus on the environment in our aim to realize better lives for people around the world.

In 2019, we redefined our corporate philosophy “Jun-Ri-Soku-Yu (adhering to reason leads to prosperity).” After many discussions based on it, we enhanced our corporate philosophy framework TOYOBO PVVs. Through this discussion process, we were convinced that the essence of Toyobo group's activities to date lies in making a contribution to ensuring the sustainability of people and the earth.

We announced our Sustainable Vision 2030 (long-term vision) in May 2022.

・Sustainable Vision 2030

Contributing to the realization of a sustainable society is the embodiment of Toyobo group's vision “We will continue to create the solutions needed by people and the earth with materials and science.” This expresses Toyobo group's approach to sustainability.

At the same time, it is important to continually enhancing corporate value. Toyobo group's contribution to realizing a sustainable society generates profits leading to enhancement of the group's corporate value. This enhancement of corporate value leads in turn to the next level of realization of a sustainable society through growth in the group's business. Maintaining this positive spiral is what Toyobo group regards as sustainability.

To meet the expectations of stakeholders, Toyobo group will further enhance its dissemination of information as well as taking active initiatives so that all employees feel personally involved in sustainability in order to promote companywide activities as a united force.

Policy

  1. Management that takes the sustainability of society into consideration, and thus management that increases the sustainability of our company
  2. Sustainability that builds a solid management foundation: the axis of our management foundation (ESG)
  3. Sustainability that strengthens our competitiveness and drives growth: the axis of our business (CSV)

Conceptual Framework-Sustainability, CSV and ESG

Conceptual Framework-Sustainability, CSV and ESG

Sustainability management structure

Toyobo group has established the Sustainability Committee, with the President serving as chairperson. Committee meetings were held six times in fiscal 2024 to review the progress of the group’s sustainability activities, with deliberations covering themes including 1) participation in the GX League, 2) sharing the value creation story, 3) group-wide risk management, and 4) efforts to respect human rights within the group and across the supply chain. In addition, under this committee, we have established the Risk Management Committee, the Climate Change and Biodiversity Committee, and the Compliance Committee to facilitate cross-company discussions.

Sustainability Promotion Structure

Sustainability Promotion Structure

Our sustainability activities

Since our group’s founding by Eiichi Shibusawa, we have taken the philosophy of one of his mottoes, “Jun-Ri-Soku-Yu (Adhering to reason leads to prosperity),” as the basis for our concept that we grow our own business by enriching society. By putting this into practice, we have anticipated modern CSV.

Since fiscal 2021, we have been moving ahead with activities under a full-fledged sustainability management orientation. Our efforts have been particularly directed toward carbon neutrality, the circular economy, human rights, human capital, and biodiversity, and upon formulating these strategies, we have specified milestones.

Period Initiatives and their purpose
Jan. 2020
  • Became a signatory to the United Nations Global Compact and joined the Global Compact Network Japan.
  • Endorsed the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD).
Apr. 2020
  • Established the Corporate Sustainability Department. Incorporated ESG elements into management and strategy, and strengthened communication of information to stakeholders.
  • Established the Sustainability Committee (renamed the CSR Committee), chaired by the President.
Apr. 2021
  • Placed Corporate Sustainability Department under direct control of the President.
  • Established the Risk Management Committee, chaired by the President.
  • Established a system to promote efforts toward carbon neutrality. Established the Carbon Neutral Strategies Council and the Carbon Neutral Strategies Cross-Functional Team.
Apr. 2022 Established the Corporate Sustainability Division.
May. 2022
  • Announced Sustainable Vision 2030
  • Formulated the GHG Emission Reduction Plan by 2050
Nov. 2022 Joined the 30 by 30 Alliance for Biodiversity
Dec.2022 Obtained Science based target(SBT) certification
Apr. 2023 Restructured the Sustainability Committee
June. 2023
  • Participated in the Ministry of Economy, Trade and Industry’s GX League
  • Signed a comprehensive cooperation agreement with Aya-cho, Higashimorokata District, Miyazaki Prefecture
  • Obtained Platinum Kurumin certification
Jul. 2023
  • Selected as a constituent of five ESG investment indices adopted by the Government Pension Investment Fund (GPIF)
  • Selected for the first time as an Asia-Pacific Climate Leader 2023
Sep. 2023
  • The Resource Recycling Project won the Excellence Award at the 6th EcoPro Awards
  • Selected as a planning participant in the Bio-Manufacturing Revolution Promotion Project of the New Energy and Industrial Technology Development Organization (NEDO).
  • Signed the group’s first Positive Impact Finance agreement with Sumitomo Mitsui Trust Bank, Limited
Oct. 2023
  • Converted fuel at the on-site power plant of the Iwakuni Production Center
  • The company-owned forest, Toyobo Aya-no-Mori, was certified as a “site coexisting with nature ” by the Ministry of the Environment
Dec. 2023 Issued the second round of sustainability-linked bonds
Jan. 2024 Joined the industry-government-academia consortium, Circular Partners

Participation in initiatives

UN Global Compact (UNGC)

In January 2020, we became a signatory to the United Nations Global Compact (UNGC) and joined the Global Compact Network Japan, which comprises Japanese companies and organizations that are UNGC signatories. We have done so because we agree with the principle of solving global issues and achieving sustainable growth as a responsible corporate citizen.
Moreover, we participate in subcommittees of the Global Compact Network Japan. Starting in fiscal 2025, we will participate in the Business & Human Rights Accelerator (Japan Edition) of the Human Rights Subcommittee to gather information on international human rights issues and other matters that companies should be aware of. We will deepen our understanding of human rights challenges and work toward identifying relevant human rights issues at our business locations.

Moving forward, we will strengthen our efforts in keeping with the Ten Principles of the UNGC as we contribute to the realization of a sustainable society.

UN Global Compact (UNGC)

The Ten Principles of UNGC

Human Rights Principle 1:
Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2:
make sure that they are not complicit in human rights abuses.
Labour Principle 3:
Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4:
the elimination of all forms of forced and compulsory labour;
Principle 5:
the effective abolition of child labour; and
Principle 6:
the elimination of discrimination in respect of employment and occupation.
Environment Principle 7:
Businesses should support a precautionary approach to environmental challenges;
Principle 8:
undertake initiatives to promote greater environmental responsibility; and
Principle 9:
encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption Principle 10:
Businesses should work against corruption in all its forms, including extortion and bribery.

Task Force on Climate-related Financial Disclosures (TCFD)

Recognizing the scale of the impact of climate change on our group and stakeholders, we have identified a “decarbonized society and circular society“ as one of our materialities. In January 2020, we announced our support for the recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD), and have been working on initiatives and disclosures that follow them.

Based on the below 1.5℃ scenario and the 4℃ scenario, we identified climate change-specific risks and opportunities for the group. By identifying the financial impacts of these risks and opportunities, we aim to strengthen the resilience of our business strategy through the development of targeted countermeasures and the establishment of relevant indicators and goals. For details, please refer to the integrated report.

TCFD
Disclosure based on TCFD Recommendations in the Integrated Report 2022
Disclosure based on TCFD recommendations in the Integrated Report 2024 (157KB)

For more information on the initiatives in which we are participating, please see below.