SUSTAINABILITY REPORT 2017 - 2018 CONTENTS ■ Corporate Profile Editorial Policy Company name Paid-In capital To communicate initiatives intended to increase corporate 02 Bridgestone History Bridgestone Corporation JPY 126.3 billion (As of December 31, 2017) value over the medium to long term, the Group reports Overview financial and non-financial information in accordance with Headquarters 04 Bridgestone by Numbers Sales the following reporting framework: specifically the 1-1, Kyobashi 3-chome, Chuo-ku, (consolidated) (FY 2017) Tokyo 104-8340, Japan JPY 3,643 billion International Integrated Reporting Framework proposed by 06 Top Commitment Employees the International Integrated Reporting Council (IIRC). Member of the Board CEO In the following report, intended for a wide range of 12 Global CSR Commitment and Representative Executive Officer (non-consolidated) 13,706 (As of December 31, 2017) Concurrently Chairman of the Board stakeholders, the Group describes its fundamental “Our Way to Serve” (consolidated) 142,669 (As of December 31, 2017) management policies for achieving sustainable growth, Masaaki Tsuya Enhancing “Our Way to Serve” Summary of Bridgestone manufacturing plants clarififying the social and environmental issues that it seeks to Interview with Global CSR Enhancement address and proactively disclosing the initiatives to address Committee Chairperson 164 plants in 26 nations (Bridgestone Group total as of April 1, 2018) those issues. This report discloses non-financial information. It is a companion to the Annual Report, which conveys mainly 18 Priority Areas

financial information. case1 Utilizing Digital Tools to Create Common Value With ■ Major Products and Operations Sustainability Report CSR Website Customers and Society

case2 Contributing to Next-Generation Public Transportation Tires and Tubes for Passenger cars, Trucks and Tires case3 Supporting Education in buses, Construction and mining vehicles, Our Communities Industrial machinery, Agricultural machinery, Aircraft, Motorcycles and scooters and Others case4 Realizing Societies Where Everyone is Able to Live Life Automotive parts, Retreading materials and to the Fullest services, Automotive maintenance and Repair services, Raw materials for tires and Others Looking Ahead to the World in 2050 SUSTAINABILITY REPORT 2017 - 2018 https://www.bridgestone.com/ In harmony with nature responsibilities/index.html Value natural resources Diversified Products Antivibration and noise-insulating Reduce CO2 emissions materials, Polyurethane foam products, The Sustainability Report 2017-2018 and CSR website are in Electro-materials, Industrial rubber accordance with GRI (Global Reporting Initiative) Standards (Core option) 36 Management Fundamentals . products, Building materials, Belts, Compliance, Fair Competition Hoses and Others Annual Report(Operational Review/Financial Review) Business Continuity(BCP), Risk Management https://www.bridgestone.com/corporate/library/annual_report/index.html Human Rights, Labor Practices A Business under Bridgestone Safety, Industrial Hygiene Americas, Inc. supplying Commercial Procurement Roofing materials and Others case5 Effort on Realizing Sustainable Period Supply Chain Golf balls, Golf clubs, Golf wear, Tennis The Sustainability Report is published annually. This report focuses on Quality and Customer Value goods and Others data and activities for fiscal 2017 (the period from January 1 to December 31, 2017), although it also includes some information 58 Corporate Governance applicable to years before and after fiscal 2017. The contents of the Outside Director’s Interview Bicycles, Other bicycle goods and Others Sustainability Report that are not historical facts are forward looking, aspirational and based on information current as of the date of the Sustainability Report. Actual results may differ materially from those 64 Bridgestone Group Awards 2018 Finance and Others expressed in any forward-looking statement. 66 Stakeholders Communication

Leveraging the potential to tightly integrate elements of the company’s Organizational Coverage 67 Third-party Assurance of Solution Business portfolio. The Bridgestone Group is working on new “solutions” service Environment Data and Social Data packages by combining maintenance services, IT/sensing technologies The Sustainability report covers the initiatives of the Bridgestone Group, and tires and diversified products to meet the needs of customers and including Bridgestone Corporation and subsidiaries and affiliates around 68 ESG Data end users. the world. Throughout the text, “Bridgestone” or “the Company” refers to Bridgestone Corporation, while “the Bridgestone Group” or “the Group” refers to all group companies, including subsidiaries and affiliates around the world. Notes are provided where this distinction does not apply. Bridgestone History Overview

he ridgestone roup is the worlds largest tire and rubber company. ince the early stage o its establishment the roup started exporting its products as well as oerseas mareting research a year ater the establishment aiming to globally expand its business. Our history has been formed as we refine our technologies pursue higher uality and aim to produce better society. e continue to contribute to soling social issues in an innoatie manner respond to the demand o our staeholders by eectiely using our strength and competence which we hae gained through long history.

The first phase of Chapter 1. rom oundation to eming rie award Chapter 2. erger and integration o irestone Chapter 3. management reorm Chapter 4. he second phase o management reorm Refinement of the Management Goal - A truly global company/ The corporate culture – Our DNA The second foundation Corporate Philosophy “Dan-totsu” in each and every aspects of “the Bridgestone Essence” our business 1931 1988 2006 2012 To the future

1931 1968 1988 2011 2015 2017 The Company’s motto Practice of Bridgestone Essence “Bridgestone Tire Company” founded in Kurume, Fukuoka Firestone merger Refinement of Completed the written by the founder the Corporate Bridgestone － Unveiled a refined global CSR commitment, Philosophy Essence “Our Way to Serve” “the Framework Founder Bridgestone Essence” Shojiro Ishibashi

Foundation with far ー Seeing globalization Named to be a global company MOBILITY PEOPLE ENVIRONMENT Stone Bridge Headquarters of Firestone at that time uality nironmental shi ashi Serving Society with Superior Quality ission ission tatement tatement Bridgestone becomes Official 1968 2018 2014 Worldwide Olympic Partner Bridgestone Earning Deming Prize The 30th anniversary after Firestone merger aety ission tatement For the society 2008 2013 “I am convinced that a simple profit seeking business will never thrive, but a business that contributes to its society and Bridgestone Group Establishment of the Global Executive Committee country will be forever profitable.” Awards (Global EXCO)

For the society with innovation

“I have set my sights on contributing to the advancement and development of society by constantly seeking insight into the Bridgestone becomes a Tokyo 2020 changes of the times, trying to be ahead of the times, and Bridgestone Group Global TQM 2010 2016 Paralympic Gold Partner manufacturing products of superior quality.” Conference

The Bridgestone Group − 02 − − 03 − Sustainability Report 2017-2018 Scope of the Report Note about the Numerical Data rganiations oered Bridgestone orporation and its onsolidated subsidiaries and affiliates. The scope covered may vary depending on the subet Suh ases are noted indiidually Bridgestone by Numbers eriod oered isal year ending eeber 1 2017

Financial Highlights

Major sustainability Ranking/Rating System Assessment ranking and rating s o ay ● DJSI (Dow Jones Sustainability Index) World selected

● CDP Climate Change 2017 A- Net sales (consolidated) Business development Tire production volume (Tonnage of Rubber) ● CDP Water 2017 A more more 3,643billion yen than 150countries than 1.8million tonnes ● CDP Supplier Engagement Rating 2018 A

Diversified China, Number of employees Products Asia & Pacific Japan China, Asia & Pacific Japan (as of December 31, 2017) Average 17% 16% 19% 470,000 470,000 age*3 years-old tonnes 39.8 tonnes Europe,Russia, Production Average years of employment*3 Sales by Middle East Sales by people & Africa Volume by 142,669 Business market Geographical Segment Europe, Russia, Tires 17% segment years Europe,Russia, Middle East & Africa Japan 13.9 % Middle East & 83 The Americas The Americas Africa 17,510 people 28,375 people Sites with ISO 9001 48% 270,000 590,000 certification*5 tonnes tonnes 99.0% The Americas China, Asia & Pacific Sites with ISO 14001 59,750 people 37,034 people certification*2 98.7% Non-Financial Highlights

Resource productivity Recycled Amount of Amount of greenhouse gas Indicates locations that have obtained ISO 14001 certification 1 improvement waste ratio* reclaimed rubbers emissions ndicates manuacturing plants that hae obtained (Base year:2005) ISO 14001 certification cope cope ridgestone orporation nly thousand 1.4% ategory and are excluded o the tonnes 1.8% categories in o the protocol 37% 90% 20.4 Sites targeted by Bridgestone for ISO 9001 certification otal amount o emissions in cope CO2 emission reduction 133,142 Energy consumption Volume of recycled 96.8% per unit of sales water*1 ratio in the operations thousand and products’ after-use t-CO2 (compared to the year 2005) GJ/ 1,276100 million yen 426 million m3 35%

Amount of raw material Total consumption of Total water intake/Total water Volume of generated Volume and ratio of recycled Volume of waste sent 1 1 1 1 1 used energy* discharge* erall aount o ater intae waste* waste* Reyling olue to landfill* erall aount o disharge Reyling Rate (Thousand tonnes) (Thousand GJ) (Thousand m (Thousand tonnes) (Thousand tonnes) (Thousand tonnes) （%） 77 00 0000 1 822 46,490 80000 718 70,241 00 00 8 1 90 100 0 5,039 1 310 1 000 811 7 0000 2 28 2 29 00 00 2 280 7 0 17 55,728 00 0000 71 0000 200 200 0 20 000 20000 100 100 2 10 00 10000

0 0 0 0 0 0 0 201 201 2017 201 201 2017 201 201 2017 201 201 2017 201 201 2017 201 201 2017

The Bridgestone Group − 04 − − 05 − Sustainability Report 2017-2018 Top Commitment

Sound Structure for Continuing Management Reform

Establishing a Sound Structure to Take Our Reforms to the Next Level

The Bridgestone Group continues hile the global economy showed moderate recoery in it continued to be subect to external orces to work toward a sustainable that limited its improement including continued uncertainty in the political and economic climate and a society as it aspires to become a succession of natural disasters in different parts of the world that caused damage on an unprecedented scale. ombined with reolutionary and eolutionary changes in the mobility sector was a challenging year truly global company. for us. We must prepare for the potential of many more turbulent years, as the Bridgestone Group—and in fact all businesses—will continue to face accelerating changes in the global economy and in our industries. The Bridgestone Group launched its new Given these circumstances, it is imperative that we continue with our management reform agenda. And the global corporate social responsibility (CSR) Group believes its road to success—and the achievement of its goals to become a truly global company and commitment “Our Way to Serve” in March 2017. It is part of our comprehensive Dan-totsu in all aspects of its business—continues to be based on commitment to its Mission and Foundation management reform agenda initiated in Framework, which has at its heart the Company philosophy of “Serving Society with Superior Quality” and 2012 and is key to delivering on our Mission dedication to the foundations contained within the Bridgestone Essence. of “Serving Society with Superior Quality.” We have made steady progress over the past Reform Framework year to ensure that “Our Way to Serve” becomes embedded within the culture of our Group. Going forward, we will continue A truly global company Management Goal to work toward that goal by identifying and “Dan-totsu” in our industries implementing new business models, such as becoming a solutions provider, This will create common value for our customers and society. Taken together, these actions will The Bridgestone Essence Mission & contribute to a sustainable society, a goal Safety, Quality & Environmental Mission Statements Foundation we can all embrace. Global CSR Commitment “Our Way to Serve”

Lean & Strategic Basic Stance Optimize management on a Group and Global basis

ember o the oard SBU (Strategic Business Unit) organization CEO and Representative Executive Officer. Reform Tools oncurrently hairman o the oard Mid-term Management Plan Masaaki Tsuya

Cultivating global corporate culture Priority Issues Developing human resources capable of global management Upgrading the global management structure

The Bridgestone Group − 06 − − 07 − Sustainability Report 2017-2018 Top Commitment

Implementation of a Revitalized Global ur accomplishments in include the continuing enhancement o our corporate goernance which CSR Commitment: “Our Way to Serve” reinforces our management structure, and the launch of our new global CSR commitment “Our Way to Serve.” This commitment builds upon our earlier CSR work and is a key component of the Bridgestone Essence Framework, which is central to our goal of taking management reforms to the next level.

The Group also heightened its business execution through the reinforcement of its global management The Bridgestone Group is committed to enhancing its business domains and delivering value to its structure which has stimulated open and constructie discussions resulting in more eectie stakeholders, all while fulfilling its Mission of “Serving Society with Superior Quality.” In light of those goals, decision-making. These efforts have resulted in steady progress, strengthening the efficiency and we formulated “Our Way to Serve” to establish the structure and articulate the ideals to achieve these effectiveness of both the management and business execution of the Bridgestone Group. ambitions in the coming years.

Management Reforms: Three Priority Issues VISION

Understanding that Serving Society with Superior Quality is our heritage and our mission, By focusing on the three priority issues, the Bridgestone Group has made substantial progress in advancing and embracing our responsibility to future generations as a global leader in our industries, its management reorms: Bridgestone and its teammates around the world employ innovation and technology to The Bridgestone Group is focused on the continuous improvement of its distinctive CSR and Quality improve the way people move, live, work and play. Management (Safety/Disaster Prevention, Environment and Quality) activities. This year marks a significant 50-year milestone in the Group’s journey toward cultivating a healthy corporate culture. Fifty years ago, Bridgestone established its company motto, “Serving Society with Superior Quality,” which is now also its Mission within the Bridgestone Essence. Also, in 1968, the Company was awarded the prestigious Deming Over the past year since its launch, we have taken every opportunity to educate our employees Prize in the field of Total Quality Management and embarked on a journey to modernize its management —all around the world—about “Our Way to Serve,” the reason for its creation, what it aims to achieve processes, systems and governance. Along this 50-year journey, it has institutionalized and operationalized and the need for each individual’s commitment to this initiative. We firmly believe that to deliver on the a number of elements that form the basis of its corporate DNA, leading it to where it is today. responsibility to society, every employee, no matter their role or where they work, must embrace our CSR It also recognizes that its DNA will evolve and strengthen in response to the environment, the marketplace, philosophy contained within “Our Way to Serve” and support the principles and values contained within competition technology and the political systems within which it operates in the next hal century and this commitment. beyond. A clear example of this evolution is the development of the refined Mission and Foundation Framework including “Our Way to Serve,” which will help define what “Quality Management” needs to be To ensure its comprehensive implementation, we have also built a collaborative network under the in the future. authority of the Global Executive Committee (Global EXCO), the highest body of business execution within the Group. These committees include the Global CSR Enhancement Committee (GCEC), the governing and oversight body for “Our Way to Serve,” as well as the Global Quality Management Committee (GQMC), which is charged with governance and oversight for the company’s Quality Management commitment*. This network will facilitate coordination among area- and function-specific Working Groups and regional Strategic Business Unit (SBU)/CSR management in order to ensure consistency and coordination of effort.

see age 17

The Bridgestone Group − 08 − − 09 − Sustainability Report 2017-2018 Top Commitment

Addressing Social Issues and Fulfilling the Expectations of Society In addition to its focus on environmental issues, the Bridgestone Group takes a holistic view of sustainability and places importance on addressing social problems and concerns such as human rights saety and responsible labor practices, along the value chain. As a Co-Chair company and member of the Tire Industry Project (TIP), operating under the umbrella of the World Business Council for Sustainable Development Sustainable Society and the Bridgestone Group (WBCSD), in November 2017 Bridgestone participated in the announcement of a new tire industry initiative that will focus on bringing sustainable natural rubber closer to reality. The Bridgestone Group also Sustainable corporate growth is not possible without a sustainable society. Relatively recently, announced a new Global Sustainable Procurement Policy in February 2018, reflecting its commitment to goernments around the world hae begun to identiy and implement programs intended to address the procurement practices that drive actions to realize long-term environmental, social and economic benefits. issues facing the creation of a sustainable society. For example, in 2015 the United Nations (UN) adopted The Policy recognizes that as the world’s largest tire and rubber company, Bridgestone has a responsibility the Sustainable Development Goals (SDGs) and the COP 21 Paris Agreement, which became effective in to be a leader in sustainability and that in order to ully delier on this responsibility ridgestone needs and

2016. It calls for a substantial cut in CO emissions in order to limit the increase in global temperatures to expects its suppliers and partners to work with the Company in pursuit of sustainable supply chains. less than 2 degrees Celsius in this century. This requires never-ending efforts and collaborations with all industry players; Bridgestone is fully committed to these efforts. Taking into account these and other programs and initiatives and utilizing the framework provided by “Our Way to Serve,” the Bridgestone Group must demonstrate its social responsibility by recognizing the economic, social and environmental impact of its global value chain andtake appropriate measures to mitigate impacts that negatively affect the establishment of a sustainable society. It must also work to To Become a Solutions Provider create common value for customers and society by tapping into its strengths and expertise. The Bridgestone Group has always used innovation to develop a wide range of products and services. It remains committed to utilizing these competencies in connection with the development and Corporate Responsibility to Address implementation of business solutions that can address social issues while fulfilling customer expectations. Environmental and Social Issues The result will be high quality, innovative benefits for its customers, a positive impact on society and recognition from its customers and end users that Bridgestone is a trusted solutions provider. “Our Way to Now incorporated as a key component of the Mission & Foundation Framework, the Environmental Mission Serve” will help the Bridgestone Group achieve its aspirational goals to benefit society and fulfill its Statement of the Bridgestone Group, refined in 2011, is focused on three objectives: being in harmony with responsibility in all its business domains.

nature aluing natural resources and reducing emissions. The Group took a further step in 2012 and formulated its long-term Environmental Vision. This vision looks ahead to the year 2050 and is based on As it works to become a “truly global company,” it will continue to focus on securing sustainable growth, the concept of “decoupling*,” which is advocated by the United Nations Environmental Programme (UNEP). earnings and competitiveness. At the same time, the Group will proactively address social issues, identify

As a company in the automotive industry, the Group pays close attention to the impact of CO emissions ways to fulfill society’s expectations and contribute to the realization of a sustainable environment and and has been implementing Group-wide activities focused on reducing not only the emissions produced society. Through active dialogue with a wide range of stakeholders, it aims to create common value for its through customers’ use of its products but also emissions generated during its tire production operations. customers, end users, employees and society. In 2010, to support its long-term Environmental Vision, the Group adopted the mid-term goal of reducing emissions generated by the customer’s use of a tire enough to outweigh emissions generated by raw material procurement, manufacturing and the tire’s after-use by 2020. It is steadily progressing toward this

ambitious mid-term 2020 goal. Moving forward, it will continue to take additional steps to reduce CO

emissions generated by the use o its products in combination with reducing emissions rom its operations to achieve both its 2020 mid- and 2050 long-term goals.

deoupling population inrease and eonoi deelopent ro enironental ootprintsee age 2

The Bridgestone Group − 10 − − 11 − Sustainability Report 2017-2018 Global CSR Commitment

To Continue “Serving Society Our Heritage and Mission Improving the Way People with Superior Quality” Move, Live, Work and Play tio ur ay to ere is closely lined to the Serving Society Innova n VISION mission o the ridgestone ssence o ering with Superior Quality Society with Superior Quality.” It refines and Solutions nhancing Mobility builds upon the roups years o success and hnolog Tec y learning rom its ocus oints. hrough marter saer more accessible ur ay to ere we leerage our strengths nderstanding that ering Our Strengths and Competencies ociety with uperior uality is our and competenciesthousands o teammates worldwide a global networ industry heritage and our mission and upporting leadership and a history o innoationto housands o eammates People and embracing our responsibility to Communities improe the way people moe lie wor and Worldwide s uture generations as a global m play. ur reers to the indiidual leaders and a e supportie approachable re comortable leader in our industries As D employees at all leels o ridgestones pirations & Global etwor worldwide organiation while ere means ridgestone and its teammates t Eng en dancing all team members incorporating the riority around the world employ agem Environmental reas and anagement undamentals into their W innoation and technology to or Stewardship ld Challenges es consciousness and plans as they work, fulfill ndustry Leadership Issu improe the way people moe lie & Social e responsible their roles and go about their eeryday duties. wor and play. ur ay to ere is the core o the ridgestone roups business and the guiding principle or eerything it does. Based on Management Fundamentals

ompliance usiness uman ights aety uality and ontinuity rocurement air ompetition is anagement abor ractices ndustrial ygiene ustomer alue

Background Development Process

STEP Identification of Issues Main International Guidelines and Diversity Initiatives Referenced and Responsible ith groing aareness about the 1 supply 1 alue chain analysis to understand and assess the impact the ridgestone ● Outside opinion (WBCSD, etc.) Business inclusion chain roup has on society ● ISO26000 and human enironent and sustainability inreasing 2 Analysis of the fields where Bridgestone’s technologies and innovation can rights ● OECD Guidelines for Multinational Enterprises global population liate hange and SGs help resole social problems Evolution ● SDGs of ● WBCSD Vision 2050 soial epetations regarding the roles that STEP Improvement mobility Prioritizing Issues and ● Guidelines and research reports from of quality indiidual orporations play in ensuring the international agencies (UN, etc.) of life Social 2 Restructuring Existing CSR Program Trend & uture health o the orld hae been nternal woring groups o global team members consider the issues inite ur ay to Sere as deeloped by Increase in reiew by internal and external staeholders and systematically organie a plan. Issues population and inreasing reerening outside opinions changes in STEP international guidelines and Rapid population Through ur ay to Sere Bridgestone ais Management Approval urbanization structure initiaties and eployee sureys to eet these epetations and as an industry 3 lan is deliberated by lobal ridgestones senior leadership team and athing these to staeholder needs Climate leader, fulfill its responsibilities for the future. approed by the oard o irectors change soial probles and the issues aing Loss of Global eutie oittee the Bridgestone Group biodiversity Resource depletion

The Bridgestone Group − 12 − − 13 − Sustainability Report 2017-2018 Global CSR Commitment

The Importance of the UN SDGs for Bridgestone Relationship Between “Our Way to Serve” and the Management Reform Priority Issues for he s adopted at the ustainable eelopment ummit in are a set o global goals with 169 specific targets to realize a sustainable world. he ridgestone roup is woring to help achiee these goals as part o its Priority Areas Management Fundamentals responsibility as a global corporation. he ridgestone roup compared its business reas in hih the Bridgestone Group an utilie its reas or easures essential as a responsible operations as well as its policies and measures or strengths and opetenies to generate oon orporation suh as opliane ith S2000 sustainability in order to identiy areas where it can alue alue or both ustoers and soiety and adherene to basi rules and soial nors leerage its strengths and capabilities to help through innoation and utting-edge tehnology resole problems. nd the roup is actiely pursuing measures or solutions. The areas in hih e an ontribute Global CSR Commitment Priority Areas and Management Fundamentals of Management “Our Way to Serve” reas o partiular Priority Areas ontributionipat Fundamentals from the beneficiary’s perspetie Compliance/fair ncrease in competition, population and BCP/risk management, changes in MOBILITY PEOPLE ENVIRONMENT population human rights/labor structure practices, work olution safety/health, procurement, o quality/customer value mobility

● apid ● iersity and ● oss o biodiersity mart urbaniation inclusion apid ccessible mobility riority issues related ● esource depletion urbaniation mobility to business odels ● ncrease in ● usiness and population and human rights ● limate change and the soure o changes in ● mproement o ● esponsible MOBILITY alue reation and population structure uality o lie supply chain opetitie adantage ae oss o ● olution o transportation biodiersity mobility iersity and inclusion PEOPLE ● lobally coordinated brand strategies Priority ● lympic and aralympic artner Priority Issues for Management Reform* Areas Cultivating global ● stablish an structure ontributing n harmony corporate culture to a saer with nature ● pen innoation industry‐goernment‐uniersity society ● dance brand strategy cooperation technological innoation ● nnoation technology business ● hit rom products to solutions model and design ● ontinuous aien ENVIRONMENT ● ontinual improement in all aspects o management esource ccessible and alue natural depletion ● orts to realie a sustainable society inclusie resources education

usiness romoting educe healthier communities and human emissions Developing human ● acilitation o programs designed to cultiate global leaders rights resources capable of ● tiliation o lobal global management esponsible limate mproement supply chain change o uality o lie Upgrading the global management 2 structure ● ursue global management issues utiliing lobal and committees ● oernance: enhancement o ● Reform and development of diversified diversified goernance systems Safety, ● Business Human Rights, business: expansion o the Industrial Diversified Products businesses Labor Practices Continuity (BCP), Hygiene Procurement Risk Quality and Compliance, Management 1 Global eutie oittee 2 see age 7 Fair Competition Customer Value

Management Fundamentals

The Bridgestone Group − 14 − − 15 − Sustainability Report 2017-2018 Global CSR Commitment Enhancing “Our Way to Serve”

Interview with Global CSR Enhancement Committee Chairperson

What is your role as GCEC chairperson? initiatie ith ur ay to Sere e are able to learly define the areas where we as a company can contribute y role is to help ailitate the eorts o the oring and really ae a dierene hih see as one o this Groups Gs to gie the guidane ro a global new initiative’s primary benefits We are making enterprise perspective of the Company’s strategy and then to allow them to find ways to influence the strategy “Our Way to Serve” ro the perspetie o SR proide enourageent What is the next challenge? an integral part of the high leel diretion and support to the ebers o the Gs To ontinue to build on ur ay to Sere in a ay Bridgestone culture. ten step ba and as re the Gs in at deliering that inorprates eoling soial needs e need to on their issions ro y antage point a able to ae sure that as soiety eoles our SR ous eoles obsere ross-utting thees and hallenges proide so e an better address the enhaning needs e also support, and help teams ensure they’re performing must ensure that we don’t lose momentum. Right Christine Karbowiak onsistently ithin their approed issions no there is energy around ur ay to Sere so e need to aintain that energy and ous so e an build on it Those to e are the priary to Vice President and Senior Officer of ridgestone orporation How do you see CSR for Bridgestone hallenges lthough e had a suessul launh in Deputy Chair, Chief Administrative Officer, Chief Risk Officer after launching “Our Way to Serve”? 2017, but that is just the beginning and the first baby and xecutie ice resident o step o a long ourney e ust truly integrate ur ridgestone mericas nc. There is a good deal o eiteent and energy around Way to Serve” into Bridgestone’s culture and into “Our Way to Serve”as a simplified and enhanced CSR eerything that e do

Key person Interview “Our Way to Serve” Global EXCO*1 System

Global CSR Enhancement Committee ur ay to Sere is deeply ingrained at e are aligning our global Global Quality Management (GCEC) Committee (GQMC) apan Tire as a guideline or longer-ter enironental priorities to be business planning and iproeent onsistent ith the global business Chairperson Chairperson atiities apan Tire is helping to sole atiities o Bridgestone and to ustoer probles and soial issues Secretary General Secretary ahiee our longer ter ur ay General throughout the alue hain to prepare or to Sere obeties ur the oing obility soiety and the iediate hallenge is supporting Managements Team WGs President WGs President draati hanges in industry and soial the roll-out and ipleentation o Yuichi Nakada alues James DeMouy the Global Sustainable roureent J-Region(Japan) BSEMEA Vice President and Officer ie resident o BSAM (Europe, BSCAP GCEC WGs 3 Russia, (China, Asia apan Tire SB Business lanning nironental ealth 2 GHO* (the Americas) oliy see age 2- SBU* 4 Middle East & Pacific) (SBU/GMP) Japan Tire SBU Quality Management and Chief Quality Officer, Saety and Sustainability /GMP* & Africa) apan Tire onurrently apan Tire SB Bridgestone orporation Bridgestone eriasn ● ● ● ● Mobility “Our Way to Serve” ● ● ● ● People 3PA*5 WGs We are a very broad and diversified region. As a part of the Bridgestone’s global CSR ● ● ● ● Environment Thans to ur ay to Sere hih seres Sustainability tea a priileged to as a lear guideline our etended SR ontribute to the ontinuous ● ● ● ● Compliance, Fair Competition netor o olleagues and oittees are iproeent o our distintie SR and ● ● ● ● BCP, Risk Management “Our Way to Serve” no aligning their proets related to our uality anageent Saetyisaster 6MF*6 WGs eople priority area They are ousing on reention nironent and uality 1 stablishent o the ● ● ● ● Human Rights, Labor Practices ipatul proets that address health atiities n our hoe base o sia the Global eutie oittee ● ● ● ● Procurement saety and eduation issues in our nd-o-ie Tyres T hallenge is a 2 Strategi Business nit GQMCWGs Martha White Paul Choo *3 Global Head Office (SBU/GMP) ounities Today e are also oring pressing issue, and we need to find Global anageent lator ie resident ie resident ● ● ● ● Safety, Industrial Hygiene uan Resoures and SR on ensuring e lin our atiities ith the uan Resoures SR solutions that oer a positie ipat or riority reas Bridgestone goals and KPI’s defined by the UNSDG’s. Bridgestone China Asia Pacific Pte. Ltd. the enironent and loal ounities anageent undaentals ● ● ● ● Quality and Customer Value

The Bridgestone Group − 16 − − 17 − Sustainability Report 2017-2018 Priority Areas

To accelerate sustainable mobility innovations through advanced Case 1 p.20 technologies and solutions Utilizing Digital Tools to Create Common Value With obility is ust as important to human progress as it is to eeryday lie. he ability to Customers and Society safely, efficiently and affordably travel between two points helps drive the economy forward while enhancing the way we live, work and play. Accessible Smart Safe Case 2 p.22 Through high-performance mobility, we can improve quality of life in our cities mobility mobility transportation with better public transportation, reduced congestion and increased accessibility Contributing to while at the same time reducing chances of transportation-related accidents. Making smooth and Utilizing unique Utilizing unique Next-Generation seamless Mobility By using resources more efficiently, we can help deliver a safer and smarter technologies to improve technologies to enhance mobility aailable. the way people sae mobility. Public Transportation transportation experience while we improve social and environmental outcomes /goods moe. across the globe.

Employ our strengths to support our communities and enhance the way Case 3 p.24 people live, learn and work Supporting Education in Our Communities

As a global leader, seeking to build a truly global company, Bridgestone touches a diverse array of communities across the world. By enhancing how people live, learn Contributing to Accessible and Promoting healthier Case 4 p.26 and work, the company strives to have a positive impact on the communities in a safer society inclusive education communities which it operates at the global and local levels. Realizing Societies Where Building safer communities Expanding education and Promoting access to the Acting on these commitments and working with our various partners, we will through services, products, training opportunities in resources people need to Everyone is Able to Live Life People help build safer, healthier communities and make education more accessible and and company and individual order to deelop ob and lead healthier lies. to the Fullest inclusive. We will build on our strengths and competencies to serve communities initiaties. life skills. today and in uture generations.

To help ensure a healthy environment for current and future generations... Looking Ahead to the World in 2050 p.28 As a global leader, seeking to build a truly global company, Bridgestone’s business presence spans multiple countries, with hundreds of production, development and In harmony with nature corporate locationst employing thousands of teammates worldwide. In harmony Value natural Reduce CO2 With the social and environmental impacts of climate change, resource scarcity, with nature resources emissions Value natural resources and nature’s degradation becoming more clear, our communities and customers are To contribute to biodiversity To continually improve natural To continually reduce Reduce CO emissions demanding we act to address these challenges in our everyday operations. through habitat resource conservation emissions o reenhouse Environment This will contribute to building a sustainable society by balancing operations with enhancement, and through through operational Gases, including COrom environmental education improvements and product our products’ complete environment, being in harmony with nature, and improving the quality of life for all. and research. design. lifecycle.

The Bridgestone Group − 18 − − 19 − Sustainability Report 2017-2018 Case 1 We will move forward Utilizing Digital Tools to focused on new value possibilities led by digitization Bridgestone is ousing eorts on solutions businesses using digitiation oreoer the ost Create Common Value With iportant onsideration is the pursuit o added alue that only a tire anuaturer an delier danes in hardare tehnologies are also iportant yet e are also eplorting the Smart Value natural Customers and Society mobility resources use o data to eet ustoer needs and ontribute to the resolution o soial issues s digitiation epands throughout the industry e beliee it is iportant to be able to Yukio Saegusa

ontinue to be an-Totsu Executive Officer and CDO t is iportant to be unonstrained by onentional systes and ontinuously strie to In charge of the Digital Solutions Center address arious needs and soial issues By onstantly oing orard e ill strie to reate Bridgestone Corporation lobal eelopment o igital olutions ne alue

The Bridgestone Approach Digital platform managing Remote monitoring of information related to tire conditions in real time The Bridgestone Group contributes to safe customer customer and tires The Group ill ontribute to sae operation operations and the minimization of costs related to tires sing tablets and other terinals to aess and more efficient tire maintenance through solution businesses that proactively utilize and anage basi inoration using sensors to easure tru related to ustoer tire usage Social Issues and bus tire air pressure and Information and Communication Technology (ICT) and onditions and aintenane teperatures as ell as other state-of-the-art technologies. status on orsites it is real-tie reote onitoring In addition, the Group will support customers and possible to isualie ustoer and tire-related inoration through a netor Social issues linked to mobility include next-generation mobility by combining big data acquired traffic accidents, traffic congestion and regional disparities caused by and accumulated through the use of digital tools and its insufficient access to transportation unique technologies to optimize the quality and among others. effectiveness of its products. These issues continue to deepen Digital tools amid concerns over difficulties in creating coping with conventional mobility given the projected progression of the Fleet solutions new value aging of society and population growth. In the transportation and Visualization and The Group will mining industries, there are issues rationalization of analyze information surrounding cost and work Mining solutions efficiencies associated with the the retread process after operation to inspection, management and propose optimal maintenance of tires. anageent tool or isualiing and rationaliing the tire usage retread proess by By heing and analying asertaining and analying retread ustoer aintenane and tire proess inoration in real tie onditions ith proprietary Contribution The Group ill ontribute to to Sustainable onitoring tehnologies the Development inreased produtiity and produt Group an reoend the ost Goals uality by anaging retread appropriate tires and usage onstrution uality inentory and ethods to ustoers ith a 8.2 other inoration higher degree o preision hiee higher leels o eonoi produtiity through diversification, technological upgrading and innoation inluding through a ous on Improving the high-alue added and labour-intensie setors efficiency and 11.2 By 200 proide aess to sae aordable productivity of aessible and sustainable transport systes or all tires for iproing road saety notably by epanding publi transport ith speial attention to the needs o construction and those in ulnerable situations oen hildren Creating new value through solutions persons ith disabilities and older persons mining vehicles using digital tools Tire and heel anageent sotare or onstrution and The Group not only creates customer value by resolving problems faced by mining vehicles. Contributes to increased efficiencies related to customers, such as minimizing costs related to safe operation and tires, it tire aintenane higher saety and loer osts through lins to also creates social value by reducing environmental impacts through the use Bridgestone B-TG onitoring tool o tire air pressure and teperature of retread tires. Through solutions using digital tools, it is engaged in the evolution of mobility supporting safer and more comfortable movement.

The Bridgestone Group − 20 − − 21 − Sustainability Report 2017-2018 Case 2

Contributing to Next-Generation loped road shoulder Curb shaped to Public Transportation Accessible Safe Contributing to avoid vehicle contact mobility transportation a safer society

eelopment o ires and ounded curb base road shoulder sloped at the Curbs which Contribute to The Bridgestone Approach tep leel appropriate angle enables smooth difference of arrierree us ransport and stable contact, while a rounded curbstone base realizes reduced tire abrasion. The curb is shaped so that there is no 33mm The Bridgestone Group is engaged in research and contact with the vehicle, while the difference in step levels has development activities aimed at improving a bus’s proximity been lowered from the conventional 58 mm to 25 mm. to the curb to minimize as far as possible the gaps between This further contributes to reducing burdens on passengers with Social Issues bus stops and buses. This is achieved by having the tires wheelchairs and baby strollers when getting on and off the bus. come in contact with the curb when passengers are getting on and off the bus. The Group developed special barrier-free The importance of public transportation will continue to concept tires and next-generation curbstones to smoothly Contributing to increase, especially amid urbanization, aging societies, and stably bring buses to the curb. It is promoting studies and the growing seriousness of environmental issues. aimed at realizing barrier-free riding for customers with a the creation of For bus transportation modes such as fixed-route buses goal of commercializing this system by 2020. Next-generation and Bus Rapid Transit (BRT)*1, barrier-free boarding and a barrier-free society departure is an issue. curb-hugging curbstones There is a demand for proper contact with the curb to The combination of these new curbstones minimize gaps between bus stops and buses as far as and concept tires is expected to possible so that the elderly, those in wheelchairs, riders with baby strollers and all other passengers are able to apan ransportation Yokohama solution substantially improve how buses come in lanning Joint ational get on and off the bus smoothly with peace of mind. At Association niersity contact with the curb. This will not only development the same time, public transportation must also run on make getting on and off the bus easier for time and operate economically. all passengers, but will also reduce the Designated barrier-free burden on drivers and contribute to 1 BRT is an epress bus rapid transit syste that utilies artiulated buses and operating buses on time. special traffic lanes to provide regular and rapid service. This eco-friendly, concept tyre net-generation urban transport syste has been adopted ainly in eerging ountries in reent years and is spreading into deeloped ountries as ell ridgestone

Contribution to Sustainable As a countermeasure against abrasions on the side of the tire that has Development repeated contact with the curbstone, the Group devised a technique to Goals change rubber on side only through the application of its retread technology. 9.1 The new concept tire combines wear-resistance performance (so it does not eelop uality reliable sustainable and resilient inrastruture scrape easily) and low-friction performance (to make the tire slippery) to inluding regional and transborder inrastruture to support eonoi deelopent and huan ell-being ith a ous on greatly reduce the amount of abrasion when the tires come in contact with aordable and euitable aess or all the curbstone, giving it a smooth and stable contact. This also contributes to Uses rubber conserving resources as only one part of the tire needs to be replaced when that is difficult 11.2 to damage By 200 proide aess to sae aordable aessible and worn. Getting on and off the bus will become easier for people who have sustainable transport systes or all iproing road saety difficulty taking public transportation as well as for the average user, making notably by epanding publi transport ith speial attention to it an even more convenient way to move people and goods. the needs o those in ulnerable situations oen hildren persons ith disabilities and older persons

2 How will transportation systems support cities of the future? Scheduled speeds of metropolitan buses elated ata Bus Scheduled Speed* （h） It is a very meaningful endeavor to provide answers to the question. 17.0 ■ Tokyo ne ethod o shortening the length o tie ■ Osaka Improving how fixed-route buses come in contact with the curb at bus stops does not simply improve 16.0 a bus is stopped at the bus stop is to inrease the ay people ho use heelhairs get on and o the bus it is a tehnology that proides all bus riders ■ Nagoya 15.0 the sheduled speed o the bus ith an easier ay to get on and o the bus Being able to get on and o the bus soothly ill shorten the tie buses stop at bus stops and ontribute to inreasing the speed at hih buses trael resulting 14.0 Bridgestone initiaties ontribute to in a shorter oerall tie reuired or bus trips or buses to soothly arrie at and depart ro bus 13.0 inreasing bus sheduled speeds by reduing stops e ust easure the eets o obining ingenious urbstone designs tire designs and road Dr. Fumihiko 12.0 the length o tie a bus is stopped at the bus suraes ith ebers o the Bridgestone researh tea ho possess a solid tra reord o researh Nakamura 11.0 stop by shortening the tie reuired or related to bus tire onstrution and those o us in the researh group studying urban transportation Transportation and Urban 0 people to get on and o the bus planning the ability to tale this subet is a ery eaningul endeaor that ill proide ansers to Engineering Research Group 1960 1965 1970 1975 1980 1985 1990 1993 1994 1995 1996 1997 1998 1999 2000 2001 (Year) uestions about ho transportation systes ill support ities o the uture ould lie to epress y Yokohama National University The aerage speed o trael by buses on publi roads in the 2 ard area o Toyo is 1 2 Bus sheduled speed The atual speed o the bus upon hih deep gratitude to eeryone inoled at Bridgestone or giing us this opportunity (1999 Road Traffic Census, Ministry of Land, Infrastructure and Transport) bus tietables are based

The Bridgestone Group − 22 − − 23 − Sustainability Report 2017-2018 Case 3

1.1 By 200 eradiate etree poerty or all people Supporting Education in eeryhere urrently easured as people liing on less than 12 a day

4.4 Our Communities Accessible and Contribution inclusive education to Sustainable By 200 substantially inrease the nuber o Development youth and adults ho hae releant sills Goals inluding tehnial and oational sills or eployent deent obs and entrepreneurship 8.6 By 2020 substantially redue the proportion o Supporting Improved Skills and youth not in eployent eduation or training Number of young Knowledge by Providing Education Social Issues and Training Opportunities people trained 60 students Contributing to talented human resource development and The Bridgestone Group conducts business in more than 150 countries, employs over reducing unemployment rates in local communities Trained people 140,000 people and interacts with diverse cultures and local communities throughout since 2003 more than people 8,000 the world. Builders’ Academy (France) These local communities face a variety of issues unique to their region, including Education and Training Facility for Employees and Local Stakeholders income disparity and poverty. Education is an important theme in improving the quality We operate the Builders’ Academy of life for local communities and employees, leading to the resolution of these issues. educational training program for Bridgestone Corporate University unemployed people at a production Training Center (Argentine) plant in the city of Béthune located in northern France. Established in 2003, Bridgestone Local plant employees become Corporate University (BCU) provides coaches, teaching students education and training opportunities to manufacturing techniques. employees, suppliers, local citizens and Students who complete the other stakeholders. Center was opened The Bridgestone Group promotes activities program are awarded a certificate in 2015 to foster training and The Bridgestone utilizing its subject matter expertise and from the French government. Through these activities, we engage in education. Since opening, 508 people know-how to expand education and the development of human resources with specialized knowledge and skills while securing human resources for the Company. We also have graduated from BCU and more Approach training opportunities or people in partner with government agencies and local NGOs to contribute to than 8,000 stakeholders have received regions where we conduct business. lowering unemployment rates, which is becoming a serious social issue. training. Through electrical engineering, mechanical engineering, and other education and training opportunities, we support next-generation learning in local communities while securing talented Number of activities Impacted village residents in India human resources for the Company. conducted up to date 24 times 4,500 people Great East Japan Earthquake recovery support efforts Wings for Children’s Dream (Japan) Providing school facilities to children with limited educational opportunities This project began in 2011, led mainly by the Ochanomizu Academic Association Educational support program (India) NPO with the aim of providing long-term support to children who lost their parents In India, many people living in rural areas are deprived of basic The provision of learning leads to or guardians in the reat ast apan educational infrastructure due to economic reasons. Bridgestone improving the workstyles and lifestyles Earthquake. Volunteers, mostly students, provided school facilities and educational materials to children with Improving local of Bridgestone Group employees, as meet regularly with children who lost their limited educational opportunities living near the Chakan plant at our well as the people living in regions parents or guardians, spending quality affiliate company in India, Bridgestone India Private Limited (BSID). By community lifestyles where our businesses are located. time together and building important supporting educational opportunities for children, we help foster These activities are expected to relationships in these children’s lives. In addition to financing, educational opportunities that can break the chain of poverty. in regions where Bridgestone offers its recreational facilities as a place for project contribute not only to the creation of a activities (summer and winter camps). we conduct business better society, but also the acquisition and development of talented local human resources.

The Bridgestone Group − 24 − − 25 − Sustainability Report 2017-2018 Case 4 Employee Health Program Participation Using Smartphones Enhancement and Social Realizing Societies Where Calculates the total number of kilometers traveled Contribution Activities (walking, running, climbing stairs, etc.) by each employee

Everyone is Able to Live Life In January 2018, a program was launched at Bridgestone Total number of kilometers is linked to Promoting healthier Accessible Europe, Middle East and Africa (BSEMEA) as means of promoting BSEMEA donation activities. to the Fullest communities mobility employee health and social contribution activities by linking the distance employees walked to donations to activities supporting the prevention of cancer. In 2018, this program will be customized and conducted in Bridgestone China & Asia Developing Technologies and Pacific (BSCAP) and Bridgestone Group in Japan supporting donations in local communities based on regional needs. Products That Support Lifelong Vitality

Contribution to Sustainable Development Goals Realizing an Social Issues The Bridgestone Approach Goal 3 “Active and Healthy Ensure healthy lives and promote well-being The Bridgestone Group promotes research for all at all ages Lifestyle” Around the world there are many enabling anyone to engage in their daily lie and people who are forced to significantly sports without impediment. We do this by for everyone 8.5 restrict their physical activities due to leveraging technology and knowledge we’ve By 200 ahiee ull and produtie eployent disabilities as well as deteriorated These initiatives contribute to enabling and deent or or all oen and en gathered related to tires automobiles and inluding or young people and persons ith physical function caused by aging. In everyone to live a full and active life. disabilities and eual pay or or o eual alue sporting goods as well as by pertaining to some situations, activity restricttions sports-related business. For example, we are This is linked to improved health 10.2 can cause movement itself to be throughout all of society and is By 200 epoer and proote the soial difficult. The Group recognizes that engaged in the deelopment o arious sporting eonoi and politial inlusion o all irrespetie o age se disability rae ethniity origin ensuring people are not isolated from goods supporting para-athletes, including rubber expected to lead to the invigoration religion or eonoi or other status society and able to live an active life artificial muscles, activities leading to support for of local communities. are important goals. the expansion of swimming schools, employee health and cancer prevention activities

Supporting Health in Local Supporting Para-Athletes Communities Through Sports

Since its establishment in 1992 in Japan, the Bridgestone Sports Voice Arena has aimed to support the healthy minds and bodies of local residents and the healthy growth of local I was impressed by the children, as well as helping design comfortable feel of the grip and lifestyles for local communities. In recent years, Development of amazed to be able to it has also conducted wellness programs for the race with peace of mind. elderly and engaged in adult onset disease a Walking Training Machine preention. a ery thanul or the support In collaboration with Professor Kenji Kawashima of the Institute of ro Bridgestones rubber and Through activities including the research and Biomaterials and Bioengineering at the Tokyo Medical and Dental biyle-related proessional deelopment o sports prosthesis rubber soles Yukako Hata University, the Group launched the development of a walking training perspetie ter reeiing the best that facilitate safe running on a variety of road Para-triathlete device that contributes to the promotion of health among senior citizens. support possible in the rae they surfaces and rubber gloves for wheelchair This rubber artificial muscle, which is ade adustents and listened to competitions that efficiently drive the wheels attached to the user’s body and assists y reueststhis as ery helpul of the wheelchair, Bridgestone also enables with walking movement, helps support t the Toyo 2020 ara-lypis weight and provides load, is an application people with disabilities to actively participate ant to ahiee aorable results of rubber and reinforced fiber as athletes. he ridgestone roup also ith Tea Bridgestone technologies accumulated from the supports para-athletes by providing them with development of tires and hoses up to now. employment opportunities. In 2018, the Group plans to launch testing for practical application

The Bridgestone Group − 26 − − 27 − Sustainability Report 2017-2018 The world Looking Ahead to the World in 2050

Total number of automobiles: in 2050 Environment 2.4 billion*2

Population:

9.6 billion*1

The total number of automobiles worldwide is expected to Resource consumption: increase with the global population as well as economic development in emerging nations. As a result, resource CO2 consumption is expected to increase and the global 141 Population billion tonnes*4 environmental footprint will become more impactful. There is CO2 CO2 Social Issues even a possibility of exceeding the earth’s capacity, through increase, climate change, resource depletion and biodiversity loss. economic CO2 emissions: development 75 billion tonnes*3 The importance of decoupling in working toward building a sustainable society Beginning In the case of Exceeds the earth’s n order to or toard sustainability soiety of the no action should not siply aept that inreased 21st century capacity resoure onsuption and enironental The Bridgestone Approach Increase of ootprint orrelate diretly ith population consumption and inrease and eonoi deelopent but environmental instead or to separate the The opulation: billion (0) footprint reers to this separation As a global company, the Bridgestone as deoupling Group is aware that it shares otal number o automobiles: 2050 responsibilities or meeting the arious 900 million (010) needs of the world and assuring a stable CO emissions: supply of high-quality products. While 9 billion tonnes (00) Striving to create a fulfilling these responsibilities, it aims to balance between contribute to building a sustainable society esource consumption: operations by balancing its operations with the earth’s 9 billion tonnes (000) and the environment capacity. Based on this philosophy, it has through technology Sustainable prepared a longterm enironmental ision and business model innovations to carry out its activities. society Reduction of resource consumption and Bridgestone Group The Bridgestone Group’s Environmental Mission Statement environmental footprint

The world’s Operations in he nironmental ission tatement o more than largest the Bridgestone Group was created so tire and rubber 150 that all employees can practice company countries environmental activities with a common focus regardless of background or daily More than More than work activities. Based on the unchanging In harmony with nature Value natural resources Reduce CO emissions enironmental philosophy o the roup 142,000 3.6 trillion yen o help ensure a healthy enironment employees sales Contribute to for current and future generations,” as Long-term In balance with Towards 100% expressed in the nironmental ission 5 globally environmental nature* sustainable 7 ission o ridgestone roup Statement, the Group declares its vision agreed target* intention o realiing a sustainable 6 (for 2050 and beyond) (Contribution > Footprint) materials* (Over 50% reduction of Serving Society with Superior Quality society and working together with CO2 emissions) stakeholders in good faith.

1 orld opulation rospets The 2012 Reision nited ations 201 n balane ith nature is our oitent to ontribute to biodiersity through habitat enhaneent and through enironental eduation and researh 2 roetion o orld nergy and Transport eands ainly in the utoobile Setor The nstitute o nergy onois apan 2012 *6 The Bridgestone Group defines sustainable materials as materials “1) that come from resources with a guaranteed continual supply, 2) that can be used as part of Based on the senarios o R8 o the LT G 201 The hysial Siene Basis oring Group 1 ontribution to the ith our business oer the long ter and that hae a lo enironental and soial ipat oer their lieyle ro proureent to disposal ssessent Report o the ntergoernental anel on liate hange oring Group 1 201 7 t the G8 oaido Toyao Suit held in uly 2008 G8 leaders agreed on a redution o at least 0 perent in greenhouse gas eissions orldide by 200 The sae eoupling atural Resoure se and nironental pats ro onoi Groth nited ations nironent rograe 2011 year at the aor onoies eeting on nergy Seurity and liate hange deeloped ountries as ell as ertain eerging nations suh as hina ndia et adopted this target as a shared global obetie

The Bridgestone Group − 28 − − 29 − Sustainability Report 2017-2018 Applicable SDG Targets inimiing ootprint

In harmony with Reducing the Impact of Water Intake Target and Actual Figures of Water Intake at Manufacturing Facilities (per Unit) The Bridgestone Group eploys ooling ater and stea in the nature prodution proess ontinued use o suh ater resoures is an Base 28% 28% 34% (Index) year reduction reduction reduction integral prodution reuireent that annot be separated ro 100 ontinuation o business or the Group The Group set a target o 90 reduing ater intae at perent per unit2 by 2020 throughout the Group based on 200 leels n 2017 redutions reahed 80 35% percent, including a significant improvement over the previous year. reduction The Group is reusingreyling ater at any o its 70 Target Long-Term In balance with nature anuaturing ailities inluding operations in areas here there 60 Vision are serious onerns regarding ater shortage suh as hina and (For 2050 and beyond) (Contribution > Footprint) Mexico. It is also using water resources more efficiently by 50

enhaning the prodution proess and using rainater 0 Water n addition to ipleenting a ris assessent or ater uality 2005 2015 2016 2017 2020 (Year) resource CO Educational ir CO Waste Activity preservation & reduction activities pollution emissions production and volume, the Group takes efficient use of water resources and 2 Bridgestone anages ater intae by unit o prodution olue and restoration Concept asteater into aount hen building ne tire ailities t uses net sales for each business. A weighted average efficiency of the the BS Global ater Tool and R uedut to assess redution rate is used as an inde ater ris assessent tool deeloped by BS ater ris at eisting ailities and is studying iproeent ater ris assessent tool deeloped by orld Resoures nstitute Contribution Footprint opportunities or eah loation R

Third-party Assurance of Environment Data and Social Data https://www.bridgestone.com/responsibilities/esgdata/pdf/third-party_assurance.pdf

Ecosystem Water orestry Land Water preservation & Research and soil maintenance alteration intake restoration pollution

The Bridgestone Group is committed to being “in harmony with nature” in accordance with the long-term vision Enhancing Contribution formulated at the 10th meeting of the Conference of the Parties (COP 10) held in 2010. To accomplish this, the Group will maintain a constant understanding of the relationship between its business and biodiversity, which will define the priority issues that it must address. “In balance with nature,” the Group’s long-term Establishment of a Simple Disease Diagnosis Technology environmental vision for this goal, is its commitment to contribute to biodiversity through habitat enhancement, for the Para Rubber Tree, a New Natural Rubber Resource environmental education and research. Its business operations will take into account the impact on the ecosystem as a whole. The Bridgestone Group is conducting activities targeting “in balance with nature” nreasing prodution on liited land to iniie deorestation aused by plantation epansions is beoing an issue throughout all business areas. aid proetions or epanding tire deand and inreased natural rubber onsuption n partiular diseases are one o the aor ators ausing delines in produtiity Bridgestone established a groundbreaing siple disease diagnosis tehnology or easily uily and aurately Relationship Between the Bridgestone Group’s Operations and Biodiversity diagnosing the hite root disease R that daages ara rubber trees hih ill play a aor role in natural rubber resoures in the uture This tehnology as announed in 201 o Bridgestone has established a Sine 201 the Bridgestone Group has onduted a ateriality analysis on the ootprint o the Groups operations and diagnostic technology that applies a biotechnology known as the LAMP method* sing a reagent it this ontributions to biodiersity This analysis is based on the interrelationship represented in the Business Biodiersity revolutionary advanced technology enables simple visual confirmation of the presence or absence of disease-causing nterrelationship ap hih is used to prioritie issues The Group ill iproe its atiities by taing ey ations in bacteria, even in the field. This technology enables the early detection of WRD, an infection that spreads by pathogens relation to these issues in the uture hile reieing the priority issues to eet the hanges in soial needs in the soil to help preent the spread o inetion ro si to healthy trees t is also epeted to help preent Meanwhile, quantification methodology for biodiversity has been developed by various organizations, including the daage and ae aintenane easier Going orard the opany ill ontinue ollaborating ith ndonesia and atural apital rotool aying attention to these international trends the Bridgestone Group has prooted the uniersities in apan to proote urther enhaned deelopent and ontribute to the protetion o ara rubber trees ualitatie and uantitatie understanding o the relationships beteen its business operations and biodiersity and the stable proision o natural rubber through the ipleentation o this tehnology White root disease is caused by a parasite fungus (Rigidoporus microporus), a type of filamentous fungi. It infects the roots, causes the tissue to decay and kills the tree. It is Priority Issues and Key Actions difficult to detect the disease in its early stages. At present, there are no fundamental countermeasures, so when the disease occurs, the infected sections of the tree are reoed and the tree is treated ith a heial reagent Loop-mediated Isothermal Amplification (LAMP) is a nucleic acid amplification method developed by Eiken Chemical Co., Ltd. It amplifies and detects DNA sequences unique to Minimizing footprint Enhancing contribution pathogeni bateria in soil

Preservation and restoration of habitat Wildlife Habitat Conservation and Reduce impact of land utilization areas for native plants and animals Environmental Education Certification Improvement of natural rubber farm Reduce impact of water intake Bridgestone erias n BS auired ildlie habitat onseration and productivity environmental education certification from the Wildlife Habitat Council (WHC) Water resource preservation or Reduce air and water emissions or its 11 ildlie abitat Sites in the nited States and eio BS onseres restoration the natural flora and fauna at each of these sites and provides environmental Reduce CO2 emissions from Reduction of CO2 emissions eduation opportunities in line ith loal onditions 1 all lifecycle stages* (customer use) n oeber 2017 senior anageent representing BS partiipated in a panel disussion at the onseration onerene hosted by the in Bridgestone Firestone Centennial Wilderness Reduce waste production 1 lieyle stages ro proureent to prodution distribution and produt disposal Baltiore aryland here orporate soial responsibilities related to the onseration o ildlie habitats ere disussed

The Bridgestone Group − 30 − − 31 − Sustainability Report 2017-2018 Resource use Applicable SDG Targets action 1 Value natural reduce raw material Resource A consumption consumption will be (enhance resource productivity) increased due to resources hal-eight tehnology increasing demands long lie tehnology (Business as usual) B action 2 recycle resources & use Line of effectively ecological retread tehnology and series capacity Long-Term non-pneuati tire *1 reyled rubber Vision Toward 100% sustainable materials A (For 2050 and beyond) A action 3 expand and diversify The increasing number of automobiles will likely boost tire demand in the future. C B renewable resources Activity The goal of the Bridgestone Group is to implement business operations in balance with the planet’s ecological capacity. The Bridgestone Group has set the goal of using “100 iproeents in rubber produtiity Concept diversification of natural resources, percent sustainable materials” in its products as the long-term vision for 2050 and C B suh as bio-aterials beyond. To achieve this goal, it is committed to taking the following three actions: (1) reduce raw material consumption (enhance resource productivity), (2) recycle resources and use them efficiently, and Current status 2050 and beyond Recycled materials (3) expand and diversify renewable resources New input of renewable materials (i.e., technology aimed at zero use of non-renewable materials). BAU 100% Sustainable *1 The Bridgestone Group defines sustainable materials as materials “1) that come from resources with a guaranteed continual (Business as usual) supply 2 that an be used as part o our business oer the long ter and that hae a lo enironental and soial ipat material C Non-renewable materials oer their lieyle ro proureent to disposal

Major Technologies and Products Targeting 100 Percent Sustainable Materials action ❷ Research and Development of Guayule, a New Natural High Strength Rubber, Our First Polymer to Be Successfully Developed recycle resources action & Rubber Resource use effectively ❶ Bridgestone is prooting arious researh proets utiliing partnerships aied at pratial appliations or guayule hih shos proise as a ne supply soure or natural rubber one o the reduce raw material utadiene isoprene and other conjugated diened ain ra aterials in tires consumption (Rubber components) Copolymerization n eeber 2017 Bridgestone erias n BS (enhance resource ollaborated ith ersalis Sp o taly aing ull use o the latest productivity) Bridgestone’s geneti tehnologies ith the ai o deeloping highly produtie proprietary novel arieties o guayule BS is also engaged in iproing guayule Gd catalyst Hybrid resin-rubber material Retread tires varieties utilizing technologies from NRgene Ltd., a genome big High Strength Rubber Ethylene and other olefins data solutions opany (Resin components) Retread tires reuse tire asings by n reognition o its any years o researh into these and replaing orn tire tread rubber other areas in ebruary 2018 BS as seleted by the ational Tire Weight Reduction Research areas that oe into ontat ith nstitute o ood and griulture o the nited States the road surae opared to ne epartent o griulture S to reeie support or the Creation of Next-Generation Material that Combines the Pliability of Rubber with tires less than one-third the aount researh and deelopent o S natural rubber resoures deried ro guayule the Toughness of Resin o ra aterial is used saing resoures as ell as enabling the iing or pratial appliations in the 2020s it ill ontinue 2 The Bridgestone orporation has suessully developed the world’s first* polyer to bond rubber and resins at the oleular leel in reuse o oponents other than to strengthen arious ators going orard inluding iproing 2018. This new polymer boasts unprecedented durability with crack resistance that is over five times higher,* abrasion resistane tread rubber (casing), significantly guayule produtiity through sustainable ethods establishing that is ore than 2 ties higher and tensile strength that is ore than 1 ties higher than natural rubber hih itsel has prodution proesses and iproing logistis higher destrution resistane than oon syntheti rubber ontributing to the redution o The nely deeloped polyer alled igh Strength Rubber SR is a hybrid aterial to bond syntheti rubber oponents suh disarded used tires as butadiene and isoprene ith resin oponents suh as ethylene at the oleular leel by using Bridgestones proprietary noel action gadoliniu Gd atalyst7 ia opolyeriation8 SR boasts leels o durability and abrasion resistane that elipse those o natural rubber or this reason SR is a proising net-generation tire aterial ith the potential to reate tires that ahiee the reuired Guayule ❸ leels o perorane hile using less aterials Bridgestone also intends to atiely eaine the possibility o utiliing SR in 9 produts other than tires 68%* rubber reduction expand and *2 Source: Bridgestone Corporation *3 The figure is based on tests using JIS K 6270 (a strain-controlled method for testing the tensile fatigue properties of vulcanized rubber and in amount of thermoplastic rubber). *4 The figure is based on tests using JIS K 6264-2 (a revised Lambourn abrasion test for determining the abrasion resistance of vulcanized rubber and diversify oil used Unlike Para rubber trees, which are the main thermoplastic rubber). *5 The figure is based on tests using JIS K 6251 (a test for determining the tensile properties of vulcanized rubber and thermoplastic rubber). *6 Ethylene is a source of natural rubber, guayule is a shrub renewable basic material used in creating plastic, synthetic fibers, and other petrochemicals. Polyethylene, which is created through polymerization of ethylene, is the most commonly used that can be cultivated on land native to the syntheti resin 7 gadoliniu atalyst is a type o polyeriation atalyst deeloped by Bridgestone that aes it possible to synthesie high-perorane rubber New tires Retread tires resources 8 opolyeriation is a proess o reating to or ore onoer oleules together in a heial reation to or polyer hains arid region spanning the southwestern apan Retreaders ssoiation United States to northern Mexico.

The Bridgestone Group − 32 − − 33 − Sustainability Report 2017-2018 Applicable SDG Targets

2 percent reduction in CO2 emissions per net sales Reduce CO Main 35 from operations and products’ after-use (compared to 2005) emissions Achievements in 2017 19 percent reduction in tire-rolling resistance (compared to 2005)

The Bridgestone Group has set a target o a perent redution in 2 eissions tonnes per net sales ro operations and produts ater-use by 2020 n 2017 redution per net sales as perent a substantial iproeent oer the preious Long-Term Contribute to Globally-Agreed Target year opared to 200 t ill ontinue to proote urther redutions in 2 eissions throughout the entire supply hain Vision aiing to eet the 2020 target or the other target o a 2 perent redution in tire-rolling resistane by 2020 opared to 200 the Group ahieed (For 2050 and beyond) (more than 50 percent reduction of CO2 emissions) a 1 perent redution in 2017 This 2 redution ontribution in 2017 is the euialent o approiately 117 illion tonnes. Improving rolling resistance while maintaining safety is a difficult task requiring innovative technologies. Contribute to CO2 reduction at usage stage that outweighs more Bridgestone has deeloped anoro-Teh technology, and promotes sales of fuel-efficient tires utilizing this technology

than all other emissions in the product lifecycle by 2020 around the orld helping to redue the olue o 2 eitted at the usage stage t is also onsidering the establishent o Mid-term 1 ne redution targets ater 2020 Environmental Reduce CO2 emissions per sales from operations and products’ after-use* Bridgestones 2 emissions are verified by a third-party institution in an effort to ensure the transparency of information. Targets by 35 percent (by 2020) *5 Calculated based on “Tyre LCCO2 Calculation Guidelines Ver. 2.0” (The Japan Automobile Tyre Manufacturers Association, Inc., April 2012) Reduce rolling resistance of tires by 25 percent and thereby achieving CO2 anoro-Teh is a nanotehnology to analye and ontrol the oleular struture o rubber at the nanoeter leel reduction during use that exceeds all other emissions in the product’s lifecycle Third-party Assurance of Environment Data and Social Data Greenhouse Gas Emissions by Tire Lifecycle Stage (Converted to CO Base)* https://www.bridgestone.com/responsibilities/esgdata/pdf/third-party_assurance.pdf Activity Raw material Manufacturing Distribution Use (Driving) After-use Concept CO Emissions Per Sales from Operations and Tire-Rolling Resistance Coefficient procurement products’ after-use Other Than Use

Energy used to Energy used CO2 emitted t100illion yen produce raw during during Base Base materials production Fuel usage Fuel usage combustion 37% 29% 35% 14% 15% 19% year reduction reduction reduction year 600 reduction reduction reduction 100

500 9.8% 86.4% 90 25% 35% reduction 400 2.9% 0.6% 0.3% reduction 80 As a company involved in the automotive industry, the Bridgestone Group is paying close attention to the impact of CO 300 Target emissions. Based on the projections of IPCC* and other internationally recognized agencies, the Group has established a Target goal to reduce CO emissions in its business operations. 200 70

Its efforts to reduce CO emissions go beyond tire manufacturing. The tire lifecycle stage that accounts for the largest 100 olume o CO emissions is “Use (Driving).” Tire contribution to automobile exhaust emissions can be lowered by reducing 60 rolling resistance, thus improving vehicle fuel efficiency and contributing to the reduction of CO emissions from the vehicle. 0 0 The Group will continue its efforts to reduce CO emissions throughout its products. 2005 2015 2016 2017 2020 (Year) 2005 2015 2016 2017 2020 (Year) To reduce the volume of CO emissions over the entire lifecycle of a tire, the Bridgestone Group has set two CO reduction-related targets so that by 2020 the contribution from avoided emissions when the customer uses the tire exceeds Raw materials Manufacturing istribution teruse

the emissions from raw material procurement, manufacturing distribution and a tire’s after-use. 7 nludes 2 emissions reduction activities and exchange rate fluctuations of sales.

Considering the value when CO emissions from operations and products’ after-use are offset by contribution of CO reduction at usage stage*, the reduction in 2017 was 86 percent (compared to 2005). The Group is Difference in CO Emissions from Operations and Products’ continuing activities with the dual approach aimed at After-use and Contribution to CO reduction at the Usage Stage The Bridgestone World Solar Challenge, Thousand tonnes achieving its goal of reducing CO emissions Baseyear generated by the customer’s use of a tire enough to 1000 the World’s Leading Solar Car Race outweigh all other emissions produced during raw materials procurement, manufacturing and the The Bridgestone orld Solar hallenge is the orlds leading rae by solar-poered 10000 afterlife of the product by 2020. carbon cars. Lasting approximately five days, the race traverses some 3,000 kilometers, Along with striving to mitigate climate change by neutral ro arin in northern ustralia to delaide in the south Bridgestone supports

reducing the amount of CO emissions, the company the teas ro around the orld that partiipate in this hotly ontested rae 000 Target recognizes the risk of climate change to Group o below enouraging the young engineers o the uture This rae has also prooted the activities and is implementing adaptation measures deelopent o enironental tehnologies suh as the ith ologi8 0 such as conducting research on sourcing natural tire hih eatures lo uel onsuption thereby ontributing to the net 2005 2015 2016 2017 2020 (Year) rubber from areas other than tropical regions. generation o obility in soiety 1 Lifecycle stages other than use include raw material procurement, manufacturing, distribution, and after use. 8 The ologi eatures a narro tread idth and large diaeter using Bridgestones lo-uel-onsuption tire tehnology to ahiee eellene both in ters 2 Greenhouse gas emissions throughout lifecycle of one fuel-efficient passenger car tire (195/65R15): 243.9kgCO2e o lo uel onsuption and saety e supplied ith ologi lo-uel-onsuption tires hih eploy the ologi onept to 22 teas Greenhouse gas eissions ro ater-use stage 11g2e eissions redutions 12g2e partiipating in the 2017 Bridgestone orld Solar hallenge or use on their solar-poered ars (Source: “Tyre LCCO2 alulation Guidelines er 20 apan utoobile Tyre anuaturers ssoiation n ntergoernental anel on liate hange Calculated based on “Tyre LCCO2 alulation Guidelines er 20The apan utoobile Tyre anuaturers ssoiation n pril 2012 or ore details o our atiities in nironent please see the ebsite httpsbridgestoneoresponsibilitiesenironentindehtl

The Bridgestone Group − 34 − − 35 − Sustainability Report 2017-2018 Compliance, Business Continuity (BCP), Human Rights, Safety, Procurement Quality and Fair Competition Risk Management Labor Practices Industrial Hygiene Customer Value Management Fundamentals The Bridgestone subits periodi reports to the opliane oittee as ell as annual reports pertaining to global opliane atiities to the Board o iretors Regional s are responsible or proiding siilar reports to their respetie senior leadership teas and boards as ell Areas for measures essential as a responsible corporation, such as inally reogniing that a true ulture o opliane reuires atie engageent by all o our teaates Definition compliance with ISO26000, and adherence to basic rules and Bridgestone priorities a ulture that proides opportunities or and enourages partiipation in opliane social norms atiities by teaates in eery business unit and untion and at all leels o the organiation

o promote roupwide sustainability actiities ridgestone created a structure comprising a Compliance Activities global management system a regional management system and woring groups s or each area o actiity. he global management system priorities initiaties in areas pertaining to a ariety o 1. Establishment of corporate standards and rules Common global issues, formulates global sustainability strategies, confirms the progress of activities in or many years ridgestone roup companies hae maintained comprehensie codes o conduct and other compliance Structure each area o the lobal , and confirms the in-house imprementation of CSR activities policies. lthough the themes in these policies and codes were generally consistent there were some regional ariations. o conducted by the lobal nhancement ommittee lobal uality anagement ensure a unified consistent compliance message on compliance for all of its teammates globally, Bridgestone has developed and is introducingintroduced this year a new comprehensie global code o conduct that will apply to the entire ommittee . groupglobally. he new ridgestone ode o onduct expands on ridgestones ission and core alues to proide practical 1 Global eutie oittee The highest-leel oittee hih is assoiated ith Bridgestone Global Group business eeution and onsists guidance to our teammates at all leels as they ace ethical and compliance challenges in their daily wor lies. he new of members including member of the Board; CEO and Representative Executive Officer; concurrently Chairman of the Board ridgestone ode o onduct coers a broad range o ethics and compliance topics. t is supplemented by additional global and regional policies and standards or areas that reuire special ocus or more indepth guidance. or example in order to clearly show the special emphasis placed by ridgestone on cartel and bribery preention ridgestone orporation established a standalone groupwide policy strictly prohibiting cartel and bribery conduct. ach adopted and maintains a similar code or guideline. ridgestone orporation issued its artel reention ode and ribery reention ode in ctober with approal o the oard o irectors which set out the basic rules o cartel and bribery preention. ridgestone also issued artel Management Fundamentals reention uidelines in ecember as a supplement to its artel reention ode. he uidelines demonstrate the appropriate course o action to be taen by employees in daytoday business situations. ridgestone also issued its uidelines on its and ntertainment in ctober and renewed the guidelines as ribery reention uidelines in ctober under the superision o the oards ompliance ommittee. lobally regional companies hae adopted related policies and controls. Compliance, Fair Competition employees are able to iew policies and guidelines are aailable to employees through the ompany intranet.

2. Trainings Mission he ridgestone roup proides its employees with a ariety o compliance trainings. hile releant annual themes are selected by legal and compliance departments or each region cartel and bribery preention code and guideline are common themes globally. ie online and worshopstyle trainings are oered depending on the targeted audience within the Ensure excellence through compliance and integrity organiation. n lie training reached more teammates than eer beore and elearning courses were expanded to many remote operations. n addition seeral ridgestone companies celebrated thics and ompliance ee actiities to promote teammate awareness o ethics and compliance through leader communications compliance tips sureys contests e build trust with all staeholders by ensuring that ethical decisionmaing guides uies and lie training sessions. responsible business practices across our operations. 3. Monitoring

uring the ridgestone roup introduced a common screening tool and training to standardie thirdparty ris Management Structure management in highris transactions. he ridgestone roup also continued expanding hotlines to accept reports regarding violation of internal rules, fraud, inaccurate financial records, embezzlement and theft throughout the company. In addition Responsibility or aintaining a best in lass ethis and opliane progra and ulture starts at the ost senior to these longstanding whistleblowing lines ridgestone orporation maintained a hotline dedicated to cartel and bribery as leels o Bridgestone but ultiately belongs ith eah and eeryeployees part o its eort to detect any anticompetitie or unair business conduct at an early stage. he compliance hotlines receie anonymous reports and ensure confidentiality. Bridgestone’s Group Global General Counsel and Chief Compliance Officer (CCO) and Global Law Leadership ridgestone also initiated arious measures to monitor the status o its internal rules and promptly uncoer potential Tea are prinipally responsible or oersight ealuation and enhaneent o the Bridgestone Groups global and misconduct particularly or cartel and bribery preention. or instance in apan the artel reention uidelines reuire regional ethics and compliance programs. The Bridgestone CCO and Global Law Leadership team are supported in officers and employees to record all contacts with competitors and also require them to consult with the Office of Legal these efforts by Bridgestone’s Compliance and Fair Competition Working Group (WG) and regional teams of airs i they hae any uestions or need guidance. ridgestones ribery reention uidelines reuire employees to submit dediated opliane proessionals ho or together to identiy annual and long-ter regional and global an approval form in advance of any payment to any government official. Regional SBUs periodically require selected compliance priorities and goals, confirm the progress of overall compliance activities at the regional and global level teammates to acnowledge compliance obligations and/or disclose any potential concerns o misconduct. urthermore Bridgestone’s CCO regularly interviews officers and division heads to assess level of risks related to legal and compliance. and report the results to senior anageent Sine its establishent the opliane and air opetition G has areully ealuated the ey eleents and praties o highly eetie orporate opliane progras and instituted short and long-ter strategies to oster a best-in-lass opliane ulture onsistent ith the Bridgestone Groups orporate alues and priniples 4. Continuous Improvement Board oersight and engageent has been a hallar o Bridgestones ethis and opliane progra or any years This board-leel oersight as strengthened in 201 ith the establishent o a opliane oittee as an ridgestone sees to continuously improe its ethics and compliance program and culture globally and regionally. ecent examples include: compliance and legal audits and reiew o all o the companys small and remote operations enhancement adisory body to the Board o iretors and again in 201 hen Bridgestone transitioned to a ne orporate and expansion of its annual certifications and investigation protocols, the identification of common global and regional goernane struture n 2017 the opliane oittee held si eetings oprised o eternal diretors ho metrics or measuring program eectieness and the deelopment and implementation o a new global ode o onduct. shared eedba on Bridgestones ethis and opliane progra based on their on eperienes and epertise

The Bridgestone Group − 36 − − 37 − Sustainability Report 2017-2018 Compliance, Business Continuity (BCP), Human Rights, Safety, Procurement Quality and Fair Competition Risk Management Labor Practices Industrial Hygiene Customer Value

Management Fundamentals Going orard Bridgestone ill proote these initiaties throughout the entire Group to reate a struture enabling a unified response to the spread of infectious diseases in all countries. Emergency countermeasure organiation drills are onduted in these three distrits annually Business Continuity(BCP), Risk Management Earthquake Countermeasures

The Bridgestone Group develops BCPs and conducts drills to prepare for major earthquakes, which pose a significant Mission ris n apan the Bridgestone Group also has established a B in preparation or a aor earthuae in the Toyo metropolitan area that would affect our head office, technical centers, and many other functions. We created a three-pronged office framework approach (consisting of Kyobashi, Kodaira, and Yokohama) for emergencies, Prevent and mitigate operational risks ensuring baup untions n 201 eauation points plaing the highest priority on the preseration o huan lie and eauation proedures ere put in plae at doesti ailities at ris in the eent o a tsunai n addition sine the Great anshin-ai arthuae in 1 the Bridgestone Group has systeatially ipleented e anticipate preent and mitigate riss but when crises arise earthuae-resistane easures in buildings This is to protet the lies o eah o our eployees but e also we protect our people, property, and profits. beliee that proteting prodution ailities and other orporate assets ro destrution is the basis o good orporate anageent n the interest o business ontinuity these initiaties also go toard itigating ris to eet soial reuireents Sine the Great ast apan arthuae in 2011 e hae again looed areully into the ulnerability to disaster o building oponents suh as eilings and pipes e hae put in plae our on standards in these regards and are proceeding with earthquake-proofing in a well-planned manner. n oerseas SBs B and arthuae-resistant easures in buildings and on anuaturing euipent are deployed or being ipleented based on the riss assessent Management Structure

The Bridgestone Group broadly diides riss into to ategories business strategi riss hih are related to Information Security anageent deision-aing and operational riss hih are related to daily operations The orer is handled through business operations, while the latter is handled by the Chief Risk Officer (CRO), who has overall Personal Information Protection responsibility or anaging riss and reports to the Bridgestone prootes oprehensie atiities to appropriately anage riss oon to the Group ith The Bridgestone Group reognies that it has been entrusted ith the personal inoration o its ustoers and onsideration or the sale and harateristis o eah site and Group opany Through the dual prootion o business partners and has an obligation to handle this inoration areully under the philosophy o respeting the Group global unified activities and autonomous risk management activities, Bridgestone identifies, prevents and personalities o indiiduals n arh 200 e orulated a basi poliy or personal inoration protetion and itigates riss and orulates risis anageent and Business ontinuity lans to enable appropriate support or put into plae a struture or inoration anageent based on this poliy e reated a opliane aseboo the ontinuation or resuption o business inorporated into our e-learning progra ases inoling personal inoration protetion and ondut ongoing n 201 under G the B Ris anageent G as established oprising ebers ro eah SB1 trainings utilizing specific examples for all employees at Bridgestone and its group companies in Japan. The G anages and updates the Bridgestone Groups Global Ris anageent oliy and oersees the opanys risk management, crisis management, and business continuity systems. To this end, the WG is undertaking five key IT Security initiatives: Refine and Standardize the Annual Risk Identification Process Across the Bridgestone Enterprise; Create a Global Definition and Framework for Crisis Management and Business Continuity; Enhance the Risk Management The Bridgestone Group taes a systeati approah to T seurity in order to preent leas o ustoer data and Role o ergeny tion Reports eelop an nterprise Trael Ris anageent rogra and oralie the other confidential information and to ensure stable business continuity. We have formulated key points and roess or ross-SB Support in risis anageent The Gs deliberations and eorts are guided by S 1000 standards or T seurity as the regulations and rules regarding T seurity atiities and ae regular reisions in the international standard or ris anageent response to tehnologial adaneents and hanges in T riss artiularly strit standards hae been set or the inoration systes handling personal inoration 1 Strategi Business nit or the global group opany netor Bridgestone is oordinating ith the T seurity teas in regions ith Bridgestone Group opanies and oring to orulate a ne global seurity raeor Bridgestone also taes steps to ontinually strengthen T seurity throughout the orporate group inluding e-learning progras or Response to New Types of Influenza and Other Severe eployees regarding eail and other aspets o T seurity and regular internal audits to raise T seurity aareness Infectious Diseases aong eployees urther to ounter targeted attas and other adaned yber threats Bridgestone is strengthening its onitoring o netors and other systes and has established a struture to proide an iediate response to any T seurity inident Since 2013, the Bridgestone Group has formulated BCPs to address the spread of new types of influenza and other seere inetious diseases that are potentially pandei in sope n 201 our Bs ere reised to align ith the orld ealth rganiations global raeor to aid in pandei preparedness and response planning BCPs have effectively guided the Bridgestone Group’s response to Avian Influenza in China and ensured the ell-being o our eployees and business operations there The opany reeied global reognition or its successful efforts to control the spread of Ebola Hemorrhagic Fever at its Liberia-based natural rubber producing operation. Firestone Liberia not only saved lives, supported education and response efforts in surrounding communities, and partnered with the Government of Liberia and NGOs to detect and fight the disease, but kept its business running at the sae tie

The Bridgestone Group − 38 − − 39 − Sustainability Report 2017-2018 Compliance, Business Continuity (BCP), Human Rights, Safety, Procurement Quality and Fair Competition Risk Management Labor Practices Industrial Hygiene Customer Value

Management Fundamentals

Respect for Diversity and Inclusion

Human Rights, Labor Practices s an organiation we beliee that all people hae the right to participate in the labor orce to the ull extent o their indiidual desire and capability. e urther beliee that bringing together indiiduals who hae dierse bacgrounds experiences sills and perspecties adds alue to our business and een more so when we all integrate into a cohesie team. ccordingly we alue diersity and expect all employees to support an Mission inclusie enironment ounded on teamwor and respect. e are coninced that doing so will help us to attract deelop and retain the best talent in the maret or the greater good o our company.

Advancing fundamental human rights and Prohibition of Discrimination and Harassment responsible labor practices We affirm the fundamental principle that everyone is entitled to fair treatment and equal opportunity without discrimination on the basis o any characteristic such as race ethnicity e will oster an inclusie culture in which all ridgestone entities and locations adopt and color nationality gender sexual orientation gender identity age language religion apply ethical labor practices build trust with our teammates and model our respect or creed social status or disability. e do not tolerate behaior that is discriminatory diersity and or undamental human rights. harassing disrespectul or otherwise degrading to indiidual dignity. e are committed to protecting the rights o indiiduals in traditionally underpriileged groups and expanding their employment opportunities.

Focus on Workplace Safety and Health

t ridgestone we lie by the principle o aety irst lways. reating a sae worplace Bridgestone Group Global Human Rights Policy or all is one o our core business alues and is eeryones shared responsibility. or more inormation on our occupational saety and health programs please see: https://www.bridgestone.com/responsibilities/saety_health/index.html

Commitment to Responsible Labor Practices

s a global leader ridgestone is committed to ensuring our compliance with all applicable s part o our oitent to be a true global leader in all that e do the Bridgestone Group is oitted to adaning undaental huan rights and responsible labor praties laws regulations and other employment standards. e beliee in doing our part to throughout our orldide operations e beliee this oitent is not only the right abolish the unacceptable practices o child labor and orced or compulsory labor thing to do but also oundational to enhaned ob satisation and pride or our eployees throughout the world. e prohibit child and orced/compulsory labor in our organiation hih is in turn ritial to sustainable suess or our business e strie to uphold and in our supply chain. eyond our commitment to compliance we strie to proide undaental huan rights priniples in all the ays that e interat ith people as uality ob opportunities or residents o our local communities with reasonable woring eployees onsuers ustoers suppliers ontrators and ounity ebers hereer hours, clean and safe working conditions, and fair, market-competitive pay and benefits. e ondut business To ensure that e are liing up to our oitents e ill ondut appropriate training on this poliy and due diligene to identiy and reediate any aderse ipat that any o our operations ay hae Protection of Free Speech and Association

Bridgestone respets international nors or huan rights suh as the undaental priniples e beliee that all people hae the right to hae their oices heard by raising their good generally reflected in the United Nations Universal Declaration of Human Rights (UDHR), the aith concerns either openly or anonymously without any negatie conseuence. o that United Nations Guiding Principles on Business and Human Rights, various International Labor end we respect the right o all employees to choose oluntarily and ree rom coercion Organization (ILO) Conventions, and other globally recognized standards. These standards whether to bargain collectiely and see representation by third parties including trade help inor Bridgestones priniples and approah on huan rights issues unions or to rerain rom doing so. e also beliee that employees should be ully and ur huan rights poliy applies to all eployees and loations in the opanies o the accurately inormed when maing the important decision o whether to elect a third party Bridgestone Group e epet all o our eployees to uphold this poliy and e epet our to represent them. n any eent at ridgestone we are committed to creating a culture o endors and suppliers to do the sae openness and employee inolement in all o the locations in which we operate.

The Bridgestone Group − 40 − − 41 − Sustainability Report 2017-2018 Compliance, Business Continuity (BCP), Human Rights, Safety, Procurement Quality and Fair Competition Risk Management Labor Practices Industrial Hygiene Customer Value

Bridgestone Group Global Human Rights Policy and Initiatives on The Bridgestone Group’s Stance on “Respect for Diversity” Human Rights Due Diligence The Bridgestone Group proides a or enironent in hih indiiduals ho hae dierse alues and personalities The Bridgestone Group is oitted to ensuring proper understanding o its stane on uan Rights and due an or oortably and deonstrate their abilities To ae this possible diligene e recognie and respect diersity o culture and customs in each country o the world. Starting in 2011 e translated our original Groups Stane on uan Rights into 1 languages and distributed e sympathie with ideas rom dierse iewpoints o dierse people and create new alue. it to all offices, plants, and group companies. We then provided education and training to all teammates to raise awareness worldwide. This process concluded in 2012. Starting in 2013, we have included this topic in New Hire e establish a system in which employees can perorm their duties with peace o mind and demonstrate training and Level-wise trainings. To further promote human rights, we have human rights consultation desks in their abilities to the ullest across the arious stages o their lies. place at each of our offices in Japan, with which employees can consult on potential concerns relating to human And finally, we focus all of these efforts on “improving employee satisfaction,” “activating and improving the rights with keeping confidentiality, while we continue to ensure compliance with the policy. Company,” and “increasing stakeholders’ profits.” s a natural eolution the Bridgestone Group announed its ne uan Rights oliy in 2018 addressing undaental huan right issues in in onnetion ith the opanys soial responsibility oitent ur ay to Serve”. The new Global Human Rights Policy reflects this commitment and defines what it means in practice in Initiatives for diverse workstyles specific areas of focus: respect for diversity and inclusion, prohibition of discrimination and harassment, focus on orplae saety and health oitent to responsible labor praties and protetion o ree speeh and assoiation Bridgestone ais to reate a orplae enironent in hih dierse indiiduals an sueed To support employees raising children, Bridgestone has established nursery facilities close to its office, and We conduct human rights due diligence within the Group. Based on our findings, we have formulated a three-year conducts seminars on childcare. In Europe, it offers flexible work schedules for families, and provide opportunities for plan to address eah area o huan rights suh as disriination and harassent eployees to aintain ouniation hile on hildare leae Bridgestone also prootes eployent or persons with disabilities, including establishing the special exceptional subsidiary Bridgestone Empowerment Co., Ltd. to proide disabled persons ith eployent opportunities Bridgestone ill urther proote suh easures ith the ai o establishing an inlusie soiety here Management Structure eployees an or ith peae o ind xample o nitiaties in apan ursery acilities aid paternity leae olunteer leae n addition to respeting huan rights in aordane ith the Group Global uan Rights oliy the opany aid maternity leae amily care leae appointed a Chief Human Rights Officer (CHRO) and is working to ensure the Group’s approach to this issue is well understood throughout the organiation n aordane ith the Global SR anageent syste the uan Rights and Labor Practices WG verifies the content and progress of overall global efforts in human rights, labor Initiatives for female employees praties and diersity and reports to the G and top anageent in eah SB1 and region

1 Strategi Business nit The Bridgestone Group based on its Stane on Respet or iersity ipleents easures or the atie partiipation and adaneent o oen in the orplae o eah SB n apan Bridgestone undertaes a ariety o initiaties to help eale eployees sueed The opany proides areer deelopent training or interested eale eployees oers support to help eale eployees deelop netors and ondut areer support training targeting gender diersity aareness or anagers The opany also has introdued a progra in apan to proote eale eployees in anageent positions ith the Approach to respecting diversity and related initiatives goal o deeloping eale anagerial andidates oer the ediu ter urtherore in 2017 it entered into a oprehensie agreeent ith hanoiu niersity aied at ultiating eale leaders n 2008 the Bridgestone Group established a unit responsible or oerseeing the prootion o diersity in apan and Bridgestone erias has adopted strategies to inrease eale representation in anageent inluding has been applying this approah to respet or diersity throughout the Bridgestone Group sine 200 support for the WOMEN Unlimited programs to develop leaders by managerial level, as well as development and Based on its Stane on Respet or iersity or eah Bridgestone Group opany it ill establish mentorship programs through the women’s affinity group BWIN. It also maintains affirmative action programs to diversity-related programs specific to the respective countries or regions and laws. proote eployent opportunities or inorities eales indiiduals ith disabilities disabled eterans and other Sine 200 Bridgestone has inited outside eperts to ondut ongoing letures related to diersity and proteted eterans or-lie balane pproiately 00 eployees had partiipated in these letures until 2017 n apan support or hildare inluded inoration ehange eetings led by eployees ho had eperiene returning to or ater hildare leae or taing tie o lso interies beore and ater taing tie o ere External assessment onduted beteen eployees on hildare leae superisors and R personnel and opportunities ere proided or ouniation aong eployees oring hile aring or hildren Regarding nursing are support in addition to letures by outside leturers and aareness atiities inoling the publiation o guideboos Selected as a “Nadeshiko Brand” for five consecutive years eeptions ro oertie ere established or eployees proiding nursing are aong other eorts to proide In March 2018, Bridgestone was selected for the fifth consecutive year as a support or eployees oring hile proiding nursing are “Nadeshiko Brand,” by which the Japanese Ministry of Economy, Trade and lso Bridgestone erias n has ipleented a ariety o initiaties designed to reate a ore dierse and Industry (METI) and the Tokyo Stock Exchange (TSE) jointly publicize enterprises inclusive work environment, including maintaining affirmative action programs to promote the employment that are eeptional in enouraging oens suess in the orplae opportunities o inorities eales indiiduals ith disabilities disabled eterans and other proteted eterans The “Nadeshiko Brand” introduced companies aggressively promoting the supporting employee affinity groups, and conducting employee focus groups. utiliation o oen eployees inluding the reation o enironents in hih oen are able to ontinue oring in eah industry ro aong adeshio rand logo approiately 00 opanies listed on the Toyo Sto hange Bridgestone as reognied or its eorts to inrease the ratio o oen aong ne hires and diretors (including outside directors), support of women's careers and initiatives supporting a work-life balance.

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Continued enhancement of job satisfaction and pride Employee Satisfaction Survey

t Bridgestone all eployees inluding ontrat Approach to Continued Enhancement of Job Satisfaction and orers are gien an eployee satisation surey General General eah year related to huan resoure poliies suh as Pride and Related Initiatives workplace attractiveness ob details orplae opensation and a broad attractiveness of the company range o other ites The results o this surey are The Bridgestone Group has adopted the olloing approah to ontinued enhaneent o ob satisation and pride reported to anageent and proided as eedba to eployees ia the opany intranet and posters 3.20point 3.27point （2017） （2017） n 2017 the surey response rate as ith Empoyees will strive to create a motivating workplace and to grow General orplae attratieness reeiing an through their work as they share the following global and Group values: average of 3.20 points (compared with 3.19 points in the previous year) out of a possible 5.0 points, while ull sore General attratieness o the opany earned an average of 3.27 points (from 3.27 points). The Communications: nourage utual ouniations that build shared opany ill tae these results into aount as it understanding and trust oes orard ith eorts to enhane orplae ouniation Teamwork: perate ith a sinere respet or diersity proote deisie and planned ations that aoodate hat is the best or both the tea and the opany Collective bargaining

Compliance: nourage sinere ations that oply ith both the letter and spirit o The Bridgestone Group regularly negotiates olletie bargaining agreeents aross doens o loations orldide all appliable las regulations and polies and olletie bargaining negotiations on reision o salary and oring onditions in apan eery spring

Customer onsider the internal and eternal ustoer perspetie and enourage As of January 31, 2018, the Bridgestone Labor Union consists of 12,536 general employees (100 percent) excluding Orientation: actions that put customer satisfaction first. diretors and superisors

Improvement: Respetuly hallenge the status uo and alays strie or eellene ithout ear o ailure oster an eniroent that prootes iproeent and innoation taing into aount the iportane o both the proess and the results

Personnel Training: roide a training syste that supports proatie learning and enourages eployees to deelop their on abilities

Evaluation, Build a huan resoures syste that enourages eployees to eel by Compensation: airly ealuating their ahieeents and opensating the aordingly

Initiatives for continued enhancement of job satisfaction and pride

n 201 Bridgestone Group onduted oluntary hes to deterine hether the neessary systes or huan resoures opensation eduation and training ere in plae The opany then oed orard to establish plans or syste iproeents at eah business unit based on the results o the oluntary hes n addition Bridgestone Group onduted training or eah opanys huan resoure oordinators to enourage syste iproeents at eah Group opany The opany is olloing this plan to steadily iproe the huan resoure and opensation systes as ell as eduation and training to ensure onsisteny throughout the Group

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Management Fundamentals Bridgestone Group safety mid-term management plan and policies

The Bridgestone Group orulates id-ter anageent plans targeting ideals and engages in the Group-ide Safety, Industrial Hygiene discussion and promotion of specific measures in three domains to achieve these ideals: consciousness, technology and structure (management). Since 2012, it has formulated Bridgestone Fundamental Safety Activities. Going forward, it will continue implementing unified safety activities globally.

Activities based on the Bridgestone Safety Fundamental Activities Mission Bridgestone promotes activities stipulated in the Bridgestone Fundamental Safety Activities as unified safety activities at all work sites. These activities stipulate basic safety practices 3S (derived from the Japanese words Seiri, Seiton and Seiso, meaning Select & Remove, Sort and Keep Clean); KY (Finding hazards beforehand); and RA (Risk Assessment), which are conducted uniformly at all work sites and by all employees conducted as ongoing initiatives. Safety First, Always In addition to publishing Activity Guidelines defining specific implementation items and promoting activities, instrutors ailiar ith Bridgestone undaental Saety tiities are assigned to eah or site to ailitate a struture or deeloping and eeuting unior saety atiities at all or sites The opany also onduts leel-based saety eduation or anagers and superisors at eah or site Going t ridgestone we mae saety a business alue. reating a sae woring place or all is orard it ill ontinue initiaties to spread and establish Bridgestone undaental Saety tiities everyone’s responsibility. Safety awareness Bridgestone has ipleented Saety onsiousness Sureys sine 200 to ultiate saety onsiousness aong eployees This surey ass uestions related to the ourrene o aidents and saety atiities and inestigates the degree to hih saety onsiousness iproes eah year The ansers are used to engage in iproeents o the arious issues raised in the surey and are lined to urther iproing saety onsiousness The Bridgestone Group refined the Bridgestone Safety Mission Statement in n addition the anageent tea isits or sites in eah loation inluding oerseas Group opanies as 2012 hanging the ording to Saety irst lays and t Bridgestone e part o ongoing eorts to disuss the iportane o prioritiing saety oer all other onsiderations ae saety a business alue reating a sae oring plae is eeryones oing orard it ill ontinue these initiaties in onuntion ith guidane ro the anageent tea to responsibility atiely proote the Bridgestone undaental Saety tiities and oster saety onsiousness in the orplae Along with refining the Group-wide guidelines for Safety, Health and Disaster reention atiities it established Bridgestone Saety undaental tiities (1) 3S:Select and Remove, Sort, Keep Clean Engineering initiatives (2) KY:Finding hazards beforehand tandard chart or ealuating the ris o euipment use Bridgestone is oring to loer ris by pursuing saety (3) RA:Risk Assessment in ridgestone orporation ro the euipent design stage and aintaining (4) Safety Rules Unit = Points (Evaluation points) saety during euipent use This inludes store and Those atiities are to be onduted by all eployees in all orplaes The arehouse euipent as ell as prodution ossibility o damage Group has hae been hallenging eployees to understand obeties and robability o inury occurring euipent These eorts inole onduting aety ission tatement epetations o the atiities and asing the to proatiely ondut these assessents to identiy riss and establish engineering ardly ossibility igh Definitely atiities any exists possibility ontrols and ipleenting or proedures to redue riss and the potential or serious inury A B C D uring 2017 the opany ontinued eorts to 1 1 2 4 7 assign and train safety engineers (SEs) as experts in Management Structure 2 3 6 9 11 euipent saety and ondut ris assessents Based on the results it is oring to identiy 5 10 13 14 To proote Group-ide sustainability atiities Bridgestone reated a struture oprising a global SR haardous euipent and ipleent saety easures

management system, a regional CSR management system, and working groups (WGs) for each area of activity. xtent o inury 8 12 15 16 giing priority to euipent posing aor inury riss Bridgestone has been reappraising the haard leel o The global SR anageent syste priorities initiaties in areas pertaining to a ariety o global issues 1 ossibility tent o inury proedures and ipleenting the neessary saety formulates global sustainability strategies, confirms the progress of activities in each area under the supervision of = Surrounded by safety cover and difficult to enter dangerous zone the and through the Global 1, and confirms the in-house penetration of CSR activities conducted B Saety oer eists but so do inadeuaies suh as lo rail ay oe in measures through risk assessment (RA) activities ontat ith dangerous area i ones pushes it assoiated ith the Bridgestone undaental Saety by the Global Quality Management Committee (GQMC). = No safety cover, but has emergency stop equipment The Saety ndustrial ygiene oring Group onsiders the ost eetie eans to ipleent the Bridgestone D = No safety cover plus inadequacies in such areas as warning and display tiities and onstantly prooting the reation o Fundamental Safety Activities on a global basis. The WG has three task forces (Global Management Systems, Global 1 inial inury = Serious injury (including inability to work) sae orplaes 2 = Light injury = Critical injury (including death) Standards, and Benchmarks/KPI), and drafts global standards from each perspective. The GMP2 ollets inoration on disasters and preention related to health and saety and prepares a uarterly report that the G utilies or pratial appliation System (management) related Initiatives uring 2017 the Saety ndustrial ygiene G reieed the sope to hih the Bridgestone Saety ission Bridgestone Group prodution or sites use a helist to assess the status o saety and health atiities inluding Statement and general regulations are applied to employees, contractors, and visitors and reported its findings at legal opliane hile oring to strengthen areas needing iproeent the G noration on industrial aidents that hae ourred ithin the Group is shared along ith inoration on the sae ind o aidents at other opanies in the industry and opanies in general ountereasures and other 1 Global eutie oittee The highest-leel oittee assoiated ith Bridgestone Global Group business eeution 2 Global anageent lator steps are ipleented to preent aidents ro ourring The Group ontinuously introdues and epands saety and health anageent systes These eorts ensure that the Bridgestone undaental Saety tiities untion appropriately and proote ongoing iproeents

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Injuries Health Management

The Bridgestone Group has established Global riteria or upational nury to lassiy inuries ourring at Group prodution distribution and sales ailities as ell as arehouses n addition to opiling inury statistis on a Health Management Approach in Japan uarterly basis the Group puts the inestigation to use in preenting siilar inuries ur goal at ridgestone is o aintain a ound abor orce and reate a leasant orplace and we uring 2017 the nuber o or-related inuries in Bridgestone orporation as belo the aerage apanese conduct our health management including healthcare management accordingly. anuaturing industry leel in ters o reueny1 and belo the aerage industry leel in ters o seerity2 n 2017 or all o the 10 prodution and logistis sites o the Bridgestone Group there ere 17 atal or serious injuries (-7 instances compared to 2016), including fractures due to falls (at December 31, 2017). Regular Checktups Bridgestone ill ontinue to proote saety atiities entered on the Bridgestone Saety undaental tiities n apan Bridgestone onduts regular and speial health heups as ell as health eas or eployees oring ithout oproise deiation or eeption ith the ai o reduing the nuber o all inuries inluding serious overseas as required under the Industrial Safety and Health Law. Employees facing health issues are given proper inuries loser to ero healthare guidane typially by resident industrial physiians at the opanys ealth are enter n addition to haing 12 industrial ediine speialists aailable at 12 sites nationide Bridgestone holds an *1 Frequency rate indicates the frequency of accidents with casualties. Frequency rate = (number of casualties/total actual working hours) x 1,000,000 annual eeting in hih all industrial physiians partiipate The opany also has a ull industrial health sta *2 Severity rate indicates the severity of accidents. Severity rate = (total number of working days lost/total number of working hours) x 1,000 inluding publi health nurses or handling speial eainations and health insurane guidane

reuency rate Rubber produt anuaturing eerity rate Rubber produt anuaturing Preventing Overwork anuaturing anuaturing . Bridgestone . Bridgestone Bridgestone recognizes the need to avoid long hours at the office and unusual amounts of overtime or late-night work to prevent health risks caused by overwork. In Japan, Bridgestone complies with the Labor Standards Act by . . . oring to redue oertie and enouraging eployees to use their annual holiday leae n 2017 the rate o . . . 1.02 . . . . eployees taing annual paid leae as 7 ith an aerage o 17 days . . Bridgestone also has a program requiring employees working more than a fixed number of hours to consult with . . . . industrial physiians to help aintain good health . . 0.65 . . . . . otal annual hours wored 2,051 hours . . . . . nnual oertime hours wored 291 hours . 0.13 . . . 0.22 . . . . . *3 Total annual hours worked = (Annual regular hours worked) + (Annual overtime hours worked) - (Annual paid holidays taken) - (Other holidays taken) . . . . . . . . . 0.08 . . . . . . . . . . . 0.006 . . . Mental Health Efforts 2008 200 2010 2011 2012 201 201 201 201 2017 (year) 2008 200 2010 2011 2012 201 201 201 201 2017 (year) n apan Bridgestone supports its eployees psyhologial and physial health ndustrial physiians and edial sta sere as the ore o the opanys ental health eorts along ith an eternal ployee ssistane rogra (EAP). In line with Ministry of Health, Labour and Welfare guidelines (covering self-care, consultation line care, on-site Disaster Prevention Management Activities industrial medical staff care and off-site care), Bridgestone has established a mental health plan for each office.

The Bridgestone Group has reated a isaster reention Global Guideline based on preious inidents ith priary 5 ince : trengthened secondary preention and focus on Disaster Prevention preparedness exercises, including incipient firefighting drills and preventative inspections The Efforts of Bridgestone in Japan implemented mental health uestionnaires stress such as electrical wiring. We continue to strengthen fire prevention activities and strive to create safe, stress-free tests mainly during health checups. uestionnaire orplaes results are proided as eedbac to the employee or early detection o mental health issues. Similar to injuries, the company shares information on fires that occur within the Group and the measures taken to 1 ince : onsultation department members care preent siilar aidents or managers and superisors and selcare or new 6 Since 2013: Counseling Office staffed by career employees and midcareer hires counselors established at headquarters. This office Bridgestone Group has designated Septeber 8 as Bridgestone Group isaster reention ay and the opanys conducts twotiered mental health care primary and orplaes no ondut disaster preention drills eery year on that day 2 : ntroduction o external also coering employee amilies secondary by selecting the ompany leel and proiding counseling or all employees in it. 3 ince : aunch o psychological consultation website on the company intranet proiding 7 ince : he ompany conducted an Global Disaster Prevention Center inormation “organizational diagnosis” of three offices in the Tokyo metropolitan area. s primary preention initiaties eturn to or rogram launched in or return To instill in all Group eployees the Bridgestone Saety ission Stateent o Saety irst lays ro a disaster 4 were undertaen to reduce ris o mental health to wor assistance and recurrence preention through disorders occurring as a result o the worplace. prevention perspective, the Global Disaster Prevention Center was established in Kodaira, Tokyo, in September 2015 ties with uman esources superiors industrial and is loated inside Bridgestone physicians main physicians and external . 8 ince : tress tests and organiational assessments conducted at all business locations. The Global isaster reention enter engages in eduation and training to reie the auses o unorgettable disaster prevention failures, such as the fire at the Bridgestone Tochigi Plant on September 8, 2003. Bridgestone onduts arious types o training at the Global isaster reention enter inluding sessions that resonate with employees because of stories told about past fire disasters and sessions that demonstrate the danger Health Program Evaluation of fire by allowing employees to experience the sensations of static electricity and dust explosions. Bridgestone also conducts training that leads to prevention and early detection of disasters using wreckage found in fire-devastated ridgestone sees transparency in its approach to ealuating occupational health eorts. he company ormulated a areas and model facilities. By introducing examples of fires that have occurred not only in Japan but also overseas, management status checklist based on its original standards concerning five areas of occupational health: overall management health education wor enironment management wor management and health management. the enter has established a hands-on learning enironent or global disaster preention training Bridgestone introduced this checklist at manufacturing facilities and/or offices in 2010, extending it to Group companies Bridgestone ontinually enhanes the trainings proided at the Global isaster reention enter Sessions in apan in and conducts regular checs and maes improements in an eort to establish and maintain the related to natural disasters ere added on arh 11 201 the anniersary o the 2011 Great ast apan system. oing orward the company will urther enhance health education and continue actiities to maintain and arthuae and present lessons learned ro that disaster improe the system or compliance with regulations and standards or occupational health in the ridgestone roup.

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Management Fundamentals Monitoring & Supporting Improvement

Sine 200 Bridgestone has oered on-site assistane to business partners hose SR Sel-he Sheet results Procurement indiated enironental initiaties in need o iproeent n 2017 Bridgestone sent eployees ro enironental-related departents to one business partners orsites to reie enironental initiaties and oer adie on iproeent urtherore the opany has started regularly isiting business partners onsidered in need o iproeents related to non-enironental initiaties Bridgestone ill ontinue strengthening eorts aied at iproing the leel o SR atiities throughout the supply hain Mission n 2017 the Bridgestone Group ontinued its eorts to proote a better understanding o SR atiities on the part o business partners distributing SR roureent Guidelines and SR Sel-he Sheets to business partners in apan as ell as in urope Southeast sia and hina These inluded ites related to the issues o huan rights labor praties health and saety disaster preention the enironent air business praties and ethis inoration seurity and soial ontributions Bridgestone oers proposals or iproeent based on Sel-he Sheet responses Create value to society through and isits business partner prodution sites to proide adie as part o its on-site enironental assistane sustainable procurement practices n 2017 perent o all business partners responded that they had initiated SR atiities Going orard Bridgestone ill ontinue to or losely ith its business partners to iproe and inrease SR initiaties through seinars and other ethods throughout the supply hain ridgestone is committed to creating alue and continually woring toward a sustainable n addition SR Seinars ere held or business partners seleted based on the results o their SR Sel-he society to realize long-term environmental, social and economic benefits by incorporating Sheet the ollowing into the entire supply chain:

1. Transparency 3. QCD & Innovation Increase transparency & ensure compliance 2. Compliance 4. Sustainable Procurement Practices The Bridgestone Group pursues arious initiaties in apan and oerseas to urther strengthen air proureent atiities Bridgestone onduts eduational progras on the Subontrat t o apan hih is related to the nti-onopoly t at 12 aor Group opanies in apan Bridgestone also onduts an e-learning progra through hih partiipants an gain a better understanding o the la n 2018 the Group ill ontinue to proote these atiities and ipleent eduational progras on the Subontrat t o apan Sine 2012 the Group has onduted eduation progras at the business site leel about purhasing opliane or ebers o related adinistration departents n 2017 1 eployees partiipated inluding Management Structure one ho oented y oerall understanding has deepened and understand hat ations ust neer engage in hile doing y ob This as ery useul n addition the Bridgestone Group ontinues to ondut sureys on oposed o ebers ro around the orld the Sustainable roureent oring Group orulates and supplier satisfaction and confirm that fair procurement activities are being undertaken at the Group through the 100 deploys global sustainable procurement policies and plans and confirms the progress of global initiatives and supplier opanies that tae part atiities hih is then reported to the G and the Global Results o the 2017 surey shoed that hile the leel o satisation generally iproed soe suppliers desired (Refer to P36 regarding the GCEC and Global EXCO) more improvements in communication. The Bridgestone Group also worked with an external research firm to ondut interies through isits to soe suppliers to gain a deeper understanding o supplier opinions and thoughts n light o the surey results the Group plans to ontinue training eployees in proureent departents to iproe eorts in this area CSR Procurement Promotion

The Bridgestone Group pursues SR proureent through a Supply hain artnership eelopent Syste raeor hih iproes the oerall opetitieness o the Bridgestone Group and its business partners Participants and graduates of the 2017 Subcontract Act of Japan program The Bridgestone Group holds an annual onerene to eplain its proureent poliies to ensure that business Number of times courses were held in 2017： 3 partners understand Bridgestone proureent poliies noration pertaining to the business enironent surrounding the industry as ell as the Groups strategy or utual iproeents in ters o opetitieness as Number of participants: 319 shared ith suppliers The status o Supply hain artnership eelopent Syste atiities as introdued and business partners ere ased to engage in these atiities ith Bridgestone Number of graduates: 293 The Green artner ard as established in 201 to reognie suppliers or their enironental atiities Based on the nironental ission Stateent o the Bridgestone Group n harony ith nature alue natural

resoures and Redue 2 eissions this aard oends atiities that help redue enironental burdens and result in enironental ontributions To opanies on the Green artner ard in 2017 Suitoo Bakelite Co., Ltd. and REIDAN CO., LTD. Results o the 2017 subontrated operations audit reealed adinistratie atters suh as errors in douentation reuiring iproeent at soe or sites hih Bridgestone plans to ondut and ollo up on going orard oing ahead Bridgestone ill ontinue to enhane and proote air transations

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Raw Material Production Procurement Manufacturing Distribution End-Use Recycling/Disposing

Complete Supplier Implementing the Policy Educate Suppliers Self-assessment Launch of Global Sustainable Procurement Policy (Feb - June 2018) Questionnaires (June - September 2018) As an immediate first step, the Bridgestone Suppliers Issue Policy Level Description Acknowledge Traceability n ebruary 2018 Bridgestone Group announed a ne Global Group has prioritied oring losely ith its Policy Alignment Receipt Sustainable roureent oliy to help identiy and ealuate eployees suppliers and ustoers and other

qualified suppliers, promote best practices, and serve as a industry eperts to ipleent the poliy er iret aterial suppliers proiding aterials used 1

ouniation and iproeent tool or the industry The the spa o 2017-2018 the Group ill or in final products

BRIDGESTONE GROUP policy reflects a company commitment to procurement TABLE OF CONTENTS ith its suppliers and partners to ensure that I N T R O D U C T I O N prograing that dries ation to realie long-ter B R I D G E S TO N E ’ S C O R P O R they hae reeied the poliy and understand it ndiret aterial suppliers · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · B R I D G E S TO N E ’ S P R O C U R B R I D G E S TO N E ’ S C O M M I T proiding produts and S U S TAI N AB L E M AT E R I AL AT E P H I L O S O P H Y environmental, social and economic benefits. The policy is B R I D G E S TO N E ’ S C O M M I T olloing anoledgent o the poliy 2 R U B B E R S U S TAI N AB I L I T E M E N T M I S S I O N · · · · · · · · · · · series that diretly M E N T TO WAR D S 1 0 0 % 0 B R I D G E S TO N E ’ S G L O B AL · · · · · · · 3 P R O C U R E M E N T P O L I C Y S · · · · · · · · · · · · · · · · · · · · · · · · · · · · · enable prodution 0 · · · · · · · · · 4 appliable to all purhased aterials and series as ell as all M E N T TO N AT U R AL suppliers ill reeie a sel-assessent Version 1.0 T R A N S P A R E N C Y Y 0 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 5 ber 2017 Decem C O M P L I A N C E S U S TAI N AB L E · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 0 Q C D ( Q U A L I T Y , C 6 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · suppliers globally S U S T A I N A B L E P R O C U R E M uestionnaire The Group urrently is 0 7

AN N E X I O S T , D E L I V E R Y ) & AN N E X I I · · · · · · · · · · · 0 9 ndiret aterial suppliers – T E R M S AN D · · · · · · · · · · · · · E N T P R A C T I C E S I N N O V A T I O N 1 0 Guided by the opanys ur ay to Sere the ne poliy POLICY– R E F E R E N C E deeloping an additional supplier assessent or D E F I N I T I O N S proiding goods andor SUSTAINABLE PROCUREMENT 1 | GLOBAL · · · · · · · 2 GROUP · · · · · · · · · · · · · · 1 | BRIDGESTONE S U S E D 1 · · · · · · · · · · · · · · · · · 2 series that indiretly · · · · · · · · · · · · · · · · · · · · · · · 3 1 aligns ith the opanys goal o using 100 perent sustainable 3 the traeability o natural rubber and ill be 2 6 enable prodution andor 3 aterials in its produts as the long-ter ision by 200 and 0 oring to partner ith the industry and other the oerall business 2 | BRIDGESTONE

GROUP | GLOBAL beyond t obines preious opany guidelines into a single SUSTAINABLE PROCUREMENT qualified experts to support ongoing monitoring

POLICY douent that sets iniu reuireents to ondut business o supplier opliane ith Bridgestone as ell as preerred praties that an ontribute to aster realiation o sustainable supply hains s a large user o natural rubber the poliy desribes the opanys epetations ith respet to ritial issues ithin the ople Tire Industry Project global natural rubber supply hain

*The Bridgestone Group defines sustainable materials as materials that “1) that come from resoures ith a guaranteed ontinual supply 2 that an be used as part o our business oer the WBCSD Tire Industry Project (TIP) long-ter and that hae a lo enironental and soial ipat oer the lieyle ro s partiipating in the BS T representing approiately perent o the orlds tire anuaturing proureent to disposal apaity eet eery to years to reie Ts progress and set a orard-looing agenda or ne and ontinuing or portion o that or ouses on eorts to bring sustainable natural rubber prodution loser to reality Development Process uh or has been done to identiy best praties or responsible souring o natural rubber and no T ill endeaor to identiy the ost eetie ays to ahiee these oon goals inluding ealuating sustainability best praties and identiying appropriate goernane strutures and potential plators Survey of societal expectations and Draft preparation & stakeholder review Approval and issuance demands Technology Provision to Improve the Productivity of Small-Scale Natural Rubber Farmers The Bridgestone Group onduted The Sustainable roureent oring Group o ur ay to Sere The poliy as reported to Global a ar-reahing surey on the issues orulated a drat poliy ith assistane ro the releant untions then approed by the The aority o natural rubber prodution in the orld is onduted by and needs surrounding ithin the Bridgestone Group and eternal speialist onsultants prepared in 12 languages and proureent atiities issued siultaneously in all sall-sale rubber arers in Southeast sia The Bridgestone Group uses large onsidering sustainable souring The Bridgestone Group gained insights ro eternal staeholders regions olues o natural rubber produed by suh arers rodutiity o these rubber poliies and proureent inluding international onsultants non-goernental organiations trees raised by these arers oten is lo and the uality and olue o natural guidelines suh as Gs aterials suppliers natural rubber arers and ey ustoers S20002000 as ell as suh to ensure the policy is thorough, reflects industry standards and best rubber produed aries To help sall-sale arers iproe the uality o their aspets as the enironent praties and is supported by an eetie ipleentation and operations T Bridgestone Suatra Rubber state BSR and T Bridgestone huan rights and saety ouniation plan Kalimantan Plantation (BSKP), subsidiaries that directly operate rubber farms in ndonesia proide these arers ith produtiity-iproing tehnologies Bridgestone has deeloped on its on opany-oned rubber ars

The Bridgestone Group − 52 − − 53 − Sustainability Report 2017-2018 Compliance, Business Continuity (BCP), Human Rights, Safety, Procurement Quality and Fair Competition Risk Management Labor Practices Industrial Hygiene Customer Value

Management Fundamentals

roup lobal rganiation Quality and Customer Value GHO*1/GMP*2 SBU

Group Global CQO Organization apan ire CQO

Mission isseminating uality mericas CQO eelop and implement policies the uality policy isualiing maor urope iddle ast selconducted CQO improement and rica ire uality controls and opportunities inspections China, Asia and Pacific CQO eiewing maret Speed up ire s uality improement Creating Customer Value & Trust perormance and iproe actiities preision in onitoring and Group lobal olution CQO Address significant quality auditing uality Global issues o create a global ramewor in collaboration with all related ridgestone entities and CQO eeloping uality nternal anuacturing trengthen the product CQO staeholders to proactiely identiy prioritie and address customer uality issues systems usiness uality unction in eeping with the intentions o our ounder to: nhancing uality etermine maret measures hemical and ere ociety with uperior uality unctions ndustrial roducts CQO

mericas (Diversified Products) CQO

ycle usiness CQO

*1 Global Head Office 2 Global anageent lator ports usiness CQO The purpose o the uality ission Stateent is to epoer the uture diretion o Bridgestone based on the spirit o its ounder Shoiro shibashi by bringing the Bridgestone DNA and proud heritage of quality and continual improvement to ne generations o eployees Through innoation and eployee engageent Bridgestone an ahiee unparalleled uality not only in anuaturing but also throughout the alue hain and in all produts and series deliered to the VOC/VOB Management ustoer

ll Bridgestone Group global business doains untions and eployees reate n oplying ith hanging the business odel ro produt out to aret in the Bridgestone Group has ustoer alue and trust through innoation and iproeents promoted utilization and improvement of the Voice of the Customer (VOC)/Voice of the Business Partner (VOB) anageent syste and inorporated it into the deelopent step to inrease ustoer alue n eah region uality ission tatement systeati anageent o B has been ipleented aording to aret onditions and used to optiie produts and series oered to ustoers

n apan the ustoer suary syste ollets data ro the ustoer ouniation enter and other related departents The syste has been utilied by related departents to iproe produt and serie uality Management Structure Bridgestone Americas and Bridgestone EMEA (Europe, Middle East and Africa) integrated corporate activities suh as oerial aret segentation sureys and understood oerall onsuer satisation ith tire patterns n 2017 Bridgestone enhaned the uality iproeent yle and the using Net Promoter Scores (NPS) to support future product plans. Customer value indicators (CVI) also were set and onitoring atiity o uality ontrol inde based on the ne struture used as an iportant indiator n 18 Bridgestone reeied the eing ppliation rie an einent In Asia and Pacific regions, Bridgestone periodically conducts market research on competitor products. Results uality aard and 2018 ill ar the 0th anniersary o that ahieeent are ed in to the deelopent step Looking ahead to this milestone year, to achieve customer value creation based on the uality ission Stateent Bridgestone ill urther strengthen its uality Bridgestone Group ill ontinue to build a solution business odel hile iproing and strengthening the struture throughout the alue hain s a syste or this Bridgestone B anageent syste Through these atiities Bridgestone iproes produt and serie uality and established the Global Quality Management Committee (GQMC) as a new reates alue or its ustoers organiation to strengthen goernane in order to realie the uality ission Stateent on organiation and ipleent the yle atiities or urther upper leel

arning eming rie

The Bridgestone Group − 54 − − 55 − Sustainability Report 2017-2018 Compliance, Business Continuity (BCP), Human Rights, Safety, Procurement Quality and Fair Competition Risk Management Labor Practices Industrial Hygiene Customer Value

Quality Assurance Through the Value Chain QA in Tire Manufacturing Response to eoling deands ro onsuers and ehile anuaturers as ell as egatrends shaping ntire alue chain autootie obility the Bridgestone Group is drien to iproe uality in its global anuaturing proesses to ontinue proiding innoatie industry-leading produts or onsuers Bridgestone also ipleents inspetions Up Down based on Group uality standards at all o its anuaturing ailities stream VALUE CHAIN Maximize value chain stream Customers Customers Bridgestone prootes the isualiation o potential uality riss at tire prodution plants and proatiely ipleents preentie ations using the ailure ode and et nalysis uality assurane ethod Based on Toward Product Toward creation of Development Procurement Manufacturing Supply Sales creation of potential risk reduction activities in 2015, it has identified and promotes the implementation of global quality customer value strategies and customer value and impression brands and impression iproeents utiliing its id-ter planning proess Going orard Bridgestone ais to urther iproe produt uality on a global basis Meet both Market research and Development and Raw material Plants, equipment Sourcing and Sales structure and Meet both product planning technology strategies strategies and logistics strategies channel strategy n 201 Bridgestone proeeded ith the early detetion o potential probles or global and rapid aret customer values production strategies customer values ations and the reation o a rapid and aurate ris anageent syste or udgent and aret ation Administrative and indirect departments (legal, production technology, quality, IT etc.) Customers Customers n 2018 Bridgestone ill ontinue to nurture its ulture o uality and saety to ensure the highest uality especially All business domains All functions All employees especially produts that proide onsuers ith orry ree use end users end users

QA for Diversified Products Development of Quality Assurance Activities Flow The Diversified Products Business of the Bridgestone Group develops a range of products other than tires, including To aoid uality issues in the deelopent proess the Bridgestone Group standardies the deelopent proess autootie oponents industrial aterials suh as oneyer belts and hoses urethane-based heial produts at all tehnial enters and enhanes arious proess he systes to iproe deelopent uality inrastruture-related produts biyles and sports euipent n 201 it ipleented a uality iproeent The eelopent 1 onsulting proess as ipleented in apan in 2011 to identiy and iproe proet to redue autootie ibration by identiying areas or iproeent at prodution ailities and then aing potential problems in all development processes. In order to cope with problems identified by regular consulting, those adustents t also reieed ustoer eedba on sporting goods and biyles and ade ontinual eorts to Bridgestone opleted the deelopent standardiation proess in all produt deelopent groups n 201 it address these areas epanded deelopent proess assessents to standardie the deelopent proess or prodution tehnology n 2018 Bridgestone ill proatiely ontinue to deelop systes and proesses designed to ensure the highest n 201 in the erias Bridgestone adopted a ne produt deelopent proess ith si gates to onsider uality o all its produts and identiy opportunities or iproeent by taing the lead on uality iproeent produt deelopent ro the standpoints o aried ustoer deands and oerall brand ris n 2017 it atiities expanded this process to the Latin American market. n urope ne produt deelopent based on the gate approah has been adopted as ell n 201 it as expanded to include the development of OE tires (tires fitted on new cars). In 2017, all new development was regulated by the gate approah lso in apan Bridgestone is iproing the tire staping assurane syste ro the iepoint o opliane ith regulations t has been addressing this staping assurane atiity in the id-ter plan sine 201 in order to enhane the syste o tire staping assurane n 2018 this staping assurane atiity ill be epanded not Human Resource Development in Support of Quality Activities only to apan but also to the atiities o global oring teas suh as the erias urope hina and sia 1 uality ssurane Handing Down Manufacturing Technology and Tradition QA in Raw Material Procurement The Bridgestone Group beliees it is iportant to hand don its traditions o uality and the sills o teaates The Bridgestone Group operates a global business oring ith a ide range o suppliers to proure ra aterials ho hae oe beore to younger generations by proiding uality and saety training or all eployees s and outsoured produts ith the ooperation o its any suppliers it has established Group-ide approal deployent o the uality ission Stateent issued in 201 ey persons ere assigned to train all eployees riteria related to ra aterials and outsoured produts to ensure high uality in the global Bridgestone Group ll Group departents arry out atiities based on the uality ission en ater establishing a relationship ith suppliers the Bridgestone Group ontinuously onitors the uality o Stateent to reate ustoer alue and trust by prooting iproeent The atiities and best praties ere goods reeied onduts supplier audits and aes other eorts to ensure suppliers are aintaining their uality shared hih helps to leel up Bridgestone assurane strutures and that produts supplied onsistently eet the Groups uality reuireents Going orard Bridgestone ais to deelop huan resoures throughout the Bridgestone Group ho an G and oring teas in the erias urope and apan hae begun ollaborating to build a global ra ensure high-uality produts and series aterial supply anageent syste n 2017 the Bridgestone Group established a suppliers periodi ealuation ethod t is disussing ho to deal ith probles and ealuation riteria or auditing Bridgestone Group Global TQM Conference QA in Outsourcing The Bridgestone Group has held a Global Total Quality Management (TQM) G and SBs are strengthening ooperation on outsoured produts in an eort to raise the leel o global uality onerene eery year sine 2010 that inoles Bridgestone and its global assurane n 201 Bridgestone launhed an eort to iproe the three ore opetenies o outsouring business units The Group Global T onerene ais to enhane the (Detection, Selection and Deterrence) with the aim of enhancing outsourcing supplier management. leel o uality atiities and iproe uality aareness by sharing eaples seleted ro eah region and SB in the Group ridgestone applied compliance procedures or wor and made assessments o The year 2018 is eorable or Bridgestone beause it ars the 0th Detection their eectieness. n it broadened this system to other areas and improed the anniersary o the eing ard Bridgestone onsiders 2018 a ilestone audit chec sheet to reduce the uality ris o outsourcing. 2 riginal uipent anuaturing year and ill ontinue to oe orard to reate ustoer alue and trust ridgestone conducted uarterly sampling inspections to preent undeclared changes in by prooting iproeent atiities aong all eployees Selection tube alues. n it started outsourcing management according to reised guidelines based on ey erormance ndicators s. ridgestone reised contracts regarding compensation or abnormalities caused by Deterrence outsourcing suppliers. he new contract terms hae been applied since as contracts are renewed.

The Bridgestone Group − 56 − − 57 − Sustainability Report 2017-2018 Corporate Governance

Outside Director’s Interview Governance by “Serving Society with Superior Quality”

Bridgestone is never satisfied with “good enough,” and is constantly searching for a better way, and to continuously Bridgestone’s continued improve. This attitude is not limited to governance. In all of its business activities, Bridgestone places great importance on how best to realize its corporate philosophy of “Serving Society with Superior Quality.” striving to rise higher For example, Bridgestone actively utilizes its Corporate Governance Code as a tool for confirming that initiatives are proceeding in the right direction. Through the Corporate Governance Code Report, the company informs stakeholders is the strength of its about the status of the various strengthening and improvement measures implemented in the prior year, while promotes dialog with various stakeholders. While some companies take a passive stance toward their corporate corporate governance. governance codes, Bridgestone considers theirs a positive opportunity to rise higher. I sometimes hear it said that instilling a sense of corporate governance in management is a challenging task. This is not an issue at Bridgestone, however, because of the shared goals. The function of an independent outside director is often compared to applying the accelerator or brake, but in Bridgestone’s case it is decisively different. Bridgestone’s directors, through various information-sharing bodies and opportunities for communication with executive and corporate officers, function as team riding in the same vehicle, sharing the same continually updated road map. In a dramatically changing business environment, with independent outside directors drawing on broad-ranging knowledge and experience, all the team members are working to ensure a safe and comfortable journey. This is also one of the strengths of Bridgestone’s governance.

“Our Way to Serve” is Still Developing – The Journey to Rise Higher Continues

CSR is a strategy and an investment. It needs to be made continually stronger. Bridgestone announced its new CSR commitment, “Our Way to Serve,” in 2017. This new structure replaces the previous CSR “22 Focus Points” and is by utside irector no means the final edition. Rather than creating a brilliant CSR framework, Bridgestone is seeking to establish a ridgestone orporation framework that continues to support brilliant CSR. Scott Trevor Davis The primary difference between “Our Way to Serve” and the 22 Focus Points is that in contrast to the “push” style Profile Scott Davis is from Australia. He graduated from the University of New South Wales School of Social Sciences in 1982 and of striving to be the best in all 22 categories, the new framework utilizes a “pull” approach that encourages each completed a graduate degree at Rikkyo University Graduate School of Sociology in 1988. Doctor of Business Administration. division and region to find the issues that affect them and find their own solutions. He has held positions at the Japan Institute for Labour Policy and Training (JILPT) and served as professor of international Moving forward, Bridgestone Group will need to consider how globalization impacts its organization. The term economics in the Department of International Economics at Reitaku University. He has been professor of the Department of Business Administration at Rikkyo University since April 2006. itself has not changed, though its nuance varies with the era. What is needed now to be global? And how should it be expressed to reflect Bridgestone’s DNA? Is it Bridgestone as a coherent whole of various companies and regions, or are Dr. Davis specializes in strategic management and CSR. He has served as Management Advisory Committee member for there synergies in a different dimension altogether? At this point, not everything is clear. Integrex Inc. (June 2001 – April 2008); outside director of Ito-Yokado Co., Ltd. (May 2004 – May 2006); outside director of At the same time, Bridgestone is working to offer solutions to address the issues faced by its customers and society. Sompo Japan Nipponkoa Holdings, Inc. (current Sompo Holdings, Inc.) (since June 2004); outside director of Seven & i Holdings Co., Ltd. (since September 2005); external auditor of Nissen Holdings Co., Ltd. (since March 2006); and outside What should be Bridgestone’s approach, and what framework should it have to achieve this? What sort of governance director of Bridgestone Corporation (since March 2011). He provides advice and recomendations on ensuring the adequacy is necessary? Bridgestone will continue its never-ending journey to “serve society with superior quality.” and appropriateness of decision-making by the Board of Directors from the perspective of business management and CSR.

hanges in orporate oernance Bridgestone has continued to advance its governance structure in order to further strengthen internal controls and enhance the speed of business execution. ear anagement oersight ission oundation ramewor perational execution Basic Policy on Corporate Governance 2006 Strategic Business Unit (SBU) organization structure (Followed by a progressive, continuous review of the operational structure) 2010 Independent Non-Executive Two officers (CEO, COO) system in Bridgestone Americas he roup considers the enhancement o corporate goernance to be one o its most important management ocus points. members o the oard o irectors ntroduction o xecutie ommittees The Bridgestone Essence he roup beliees that woring to increase management uality and enhance the transparency o decisionmaing is 2011 indispensable and accordingly continually stries to strengthen corporate goernance. his ensures that the roup 2012 Environmental Mission Statement Two officers (CEO,COO) system in Bridgestone Corp. continues to fulfill its founding mission as stated in its corporate philosophy: “Serving Society with Superior Quality.” Safety Mission Statement ased on this approach in accordance with the responsibility and authority delineated in the dministratie 2013 iscretionary board adisory lobal uthority ules and in line with the olicy anagement ules the ompany is committed to deeloping communicating committees and abiding by air transparent decisionmaing and management policies. (Governance / Nomination / Compensation) s one acet o initiaties to strengthen its corporate goernance system to achiee both urther strengthening o its 2014 ompliance ommittee ntroduction o lobal xecutie ommittee Restructure SBUs: BSCAP China + Asia Pacific internal control system and heightened speed in execution, the Company transitioned to the “Company with Nominating BSEMEA Europe + ME, Africa, Turkey, & Russia Committee, etc.” model of corporate governance in March 2016. The Group will continue striving to further strengthen 2015 Quality Mission Statement both the efficiency and the effectiveness of management and execution. 2016 doption o new corporate structure: Establish Global Mining & Agricultural Solution “Company with Nominating Committee, etc.” 2017 Global CSR Commitment ompany “Our Way to Serve”

The Bridgestone Group − 58 − − 59 − Sustainability Report 2017-2018 Corporate Governance

Corporate Governance Structure Board of Director

Corporate Governance Structure (as of March 23, 2018) Number of Directors (as of March 23, 2018)

General Meeting of Shareholders Internal Outside Female Foreign Directors Directors Directors 2 Director 1 Board of persons4 persons8 persons person Directors nuiries Representative Board of Director (12)(include 8 outside directors) Advisory Committee to the Board of Directors Executive Officers Internal Directors Outside Directors (total of 8 outside directors) eports 12 persons

Representative Executive Officer

Nominating Committee (3 outside directors) Governance Committee Reason for Appointment and Affiliated Committee of Directors ecide on a proposal on the appointment and dismissal o directors Nominating udit ompensation Name eason or ppointment to submit to the Shareholders’ Meeting Compliance Committee ommittee ommittee ommittee

He has accumulated abundant experience through engagement in such fields as Audit Committee (5 outside directors ＋ 2 inside directors) international relations, human resources, public relations and the implementation of Masaaki TSUYA － － － udit perormance o duties by Point 1 internal controls since his appointment as Representative Director CEO in 2012, and has directors and executive officers e are maing ongoing improements to the strongly promoted management reforms including strengthening corporate governance. corporate goernance system through the He has accumulated abundant experience through engagement in such fields as appropriate and actie execution o duties by the production technology, plant management and sales. Since his appointment as Compensation Committee (3 outside directors) oard o irectors the statutory committees and Kazuhisa NISHIGAI － － － the disory ommittee to the oard o irectors Representative Director COO in 2012, he has strongly promoted management reforms ecide compensation or directors as well as through superision o the executie including the expansion of the tire business and diversified products business.

and executive officers officers and directors. Independent Auditors He has accumulated abundant experience through engagement in such fields as manufacturing, production technology and international business, and since 2017, while Management oversight Narumi ZAITSU engaging in appropriate decision making of the Board of Directors as a Member of the － ◯ － Direction Board, has been in charge of auditing of the entire Bridgestone Group and promoting Auditing strengthening of the auditing system as a member of the Audit Committee. Operational execution He has accumulated abundant experience through engagement in such fields as finance, the diversified products business, management auditing and overseas operations, and Kenichi TOGAMI since 2016, while engaging in appropriate decision making of the Board of Directors as － ◯ － a Member of the Board, has been in charge of auditing of the entire Bridgestone Group and promoting strengthening of the auditing as a supervisory auditor. Point 2 e are urther strengthening the goernance Executive He has excellent academic knowledge in the fields of sociology and international system by increasing the transparency o the Officers (7) Scott Trevor DAVIS business administration, as well as abundant wisdom regarding CSR in Japan and ◯ － ◯ Representative Foreign Executive decisionmaing process through separation utside irector oerseas and clarification of the responsibilities and Executive Officers Officers powers of the representative executive officer Management and Overall Operations CEO (hereinafter called “CEO”) and the Overall Strategy utual hec representative executive officer COO Yuri OKINA He has significant research experience regarding financial systems and financial ◯ － ◯ (hereinafter called “COO”), promotion of CEO and Representative COO and Representative adinistration utside irector increased inormation sharing and proactie Executive Officer Executive Officer reiew by the xecutie perational ommittee and other policy management meetings. Other policy management He has abundant experience as a lawyer at law firms in Japan and overseas, as well as Global EXCO meetings Kenichi MASUDA his expertise as represented by his experience of teaching corporate law at a graduate ◯ － ◯ school of law. Global Executive Executive Operational utside irector Committee and others Corporate officer responsible Committee: 11 for internal auditing (4 nationalities) Internal Officer Nomination and Kenzo YAMAMOTO He has abundant knowledge about the financial market and the financial system, as well Audit Compensation Meeting as abundant wisdom regarding business management and risk management. － ◯ － Internal Auditing Office utside irector Executive officers He has broad insight into industrial technology fields, as well as his abundant Departments in domestic/overseas Group companies Keikou TERUI administrative experience in industrial policies at the Ministry of Economy, Trade and － ◯ － Industry. Internal Control Systems utside irector

He has abundant professional experience of accounting audits and consulting as a Seiichi SASA Certified Public Accountant, as well as his expertise as represented by his current To further increase transparency of corporate governance, the Governance Committee and Compliance － ◯ － Advisory experience of teaching accounting and audit at a university and graduate school, and Committee have been established as advisory bodies to the Board of Directors. These advisory committees utside irector former appointment as an Examiner of the Certified Public Accountant Examination. Committee provide advice to the Board of Directors in regard to such matters, the governance system and related to the Board of issues, and overall compliance activities. These committees are comprised of a total of outside directors He has abundant corporate management experience in the financial industry and Directors and one or more internal directors, who are members of the Audit Committee participate as observers. Yojiro SHIBA entertainment business industry, and is expected to contribute to appropriate decision making of the Board of Directors by making suggestions on creation of value and － ◯ － utside irector With regard to the execution of business operations, the Company has established the Global Executive establishment of business from the perspective of customers based on his deep insight. Committee (Global EXCO) in 2013, which oversees business execution on a Group and Global basis, the Executive Executive Operational Committee and other policy management meetings. These Committees deliberate Operational He has high expertise as a lawyer, and is expected to contribute to appropriate decision and report on specific matters set forth in Company policy as well as other important matters. In addition to Yoko SUZUKI Committee making of the Board of Directors based on his abundant experience and deep insight as － ◯ － key executive officers such as the CEO and COO, full-time corporate officers also participate in the Global utside irector an outside auditor and auditor of other companies and various associations. EXCO and the Executive Operational Committee meetings along with other policy management meetings.

The Bridgestone Group − 60 − − 61 − Sustainability Report 2017-2018 Corporate Governance

Auditing Structure Evaluation of the Effectiveness of the Board of Directors’Meetings

The Company implements audits through cooperation among the Audit Committee, the Internal Auditing Office, In order to strengthen its corporate governance and promote the speed of business execution the Company has and the independent auditors. regularly reviewed its governance performance and continually implements reforms to its governance systems In accordance with audit policies determined by the Audit Committee, the Committee works in cooperation and processes (as a part of this process the Company introduced Independent Directors in 2010, introduced the with the Internal Auditing Office and other bodies to audit the execution of business duties by executive officers dual executive roles of CEO and COO in 2012, and between 2013 and 2014 established Nominating, and directors. These auditing activities include attendance at important meetings, such as the Global EXCO and Compensation, Governance and Compliance committees as advisory committees to the board, established the the Executive Operational Committee; interviews to ascertain the status of operations; reviews of important global executive management committee “Global Executive Committee” in 2014 and adopted the Company business documents; and on-site audits of business offices. Moreover, information and opinions are exchanged with Nominating Committee, etc. Model of corporate governance in 2016). Building upon these enhancements with the representative executive officers, and meetings are held with such persons as the corporate auditors of the scope for the evaluation of Board effectiveness has been taken to include not only the Board and the major subsidiaries in Japan. In addition, the Company has assigned a corporate officer with full-time responsibility committees required under the Company with Nominating Committee, etc. Model (Nominating, Auditing and for auditing to assist the operations of the Audit Committee. Under the supervision of this corporate officer, Compensation Committees) but also the advisory committees (Governance and Compliance Committees). With dedicated staff have been assigned to assist with audits by the Committee. Decisions to select and replace this the objective of strengthening corporate governance, the entire scope of board functions (the Board and all five corporate officer require the agreement of the Audit Committee. committees – both legally required and advisory) is subject to annual evaluation in a process which involves a The Internal Auditing Office and internal auditing departments within the Company’s operating divisions and review of all board deliberations and their outcomes and self-evaluations of all directors. The following diagram major subsidiaries conduct internal accounting and operational audits of the Company and Group companies. The illustrates the structure and scope of this evaluation process. Internal Auditing Office makes annual audit plans and conducts on-site audits of each function, operating division, and subsidiary. The Board evaluation process requires the Board and each Committee to complete a formal self-evaluation In cooperation with the Audit Committee, Deloitte Touche Tohmatsu LLC performs the accounting audit of the process the results of which are then submitted to the Board where the overall effectiveness of the Board’s Company’s financial statements. operation and governance performance level is evaluated. As a result of this Board evaluation it has been The Audit Committee, the Internal Auditing Office, and the independent auditors exchange information and opinions determined that decision-making ensures transparency and that the oversight functions of the Board are being as necessary and generally maintain close contact, thereby working to further increase audit efficiency and effectiveness. carried out through timely reports to the Board for deliberation, productive discussions among members of the Board, active deliberations at Board meetings taking the various perspectives of external independent directors into account and the ongoing efforts of the legally-required and advisory committees to create an organization of Compensation System for Directors and Executive Officers global awareness. Also, in February 2018 the Board revised its authority, and put even greater focus on deliberations concerning Bridgestone, in deciding on executive compensation, will determine an appropriate amount of compensation in management strategy. From now on the Board, in efforts to improve the Company ever further, is addressing the light of Bridgestone’s business performance and scale of business, based on the four “Principles of enhancement of governance and continuous improvement of all the functions of the Board of Directors. Compensation” of (1) retaining and cultivating superior human resources, (2) remaining competitive, (3) motivating the implementation of the global business strategy and (4) motivating an increase in shareholder value, in view of the standard of compensation for the main domestic businesses developing global business and the roles and responsibilities of directors and executive officers. Internal Control Systems: Basic Approach and Implementation ompensation system or directors Board of Director, Executive Officer and (for directors who are also executives) orporate uditor emuneration (January-December 2017) With regard to Bridgestone’s internal controls system for ensuring that the company carries out its business appropriately, decisions on improvement strategy are made by the Board of Directors, and the Representative Established by a company-wide performance bonus Executive Officer is then entrusted with the carrying out of these decisions; the Representative Executive Officer linked to the achievement of business results for the receives reports on the status of the improvements and related operations, and monitors implementation, to fiscal year, as well as Performance Share Unit(PSU). realize further improvement. 201 million yen 685 Report on the Corporate Governance Code Business Variable (of which ¥109 million is million yen Performance Compensation, etc. for outside directors) Bridgestone Corporation submitted the report on the “Corporate Governance Code” to the Tokyo Stock Exchange, with verification concerning the state of correspondence to all principals. The “Corporate Governance Code” was added to the listing rules of the Tokyo Stock Exchange in 2015 to contribute to the realization of Executive effective “Corporate Governance” as the KEY principals. The Company publishes “Corporate Governance Code Fixed Directors Fixed Compensation 12persons Officers 9persons Report” and published them on its website. Through the explanation of the Company’s idea of the “Corporate Governance” and introducing efforts towards it, Bridgestone Corporation is aiming to promote greater understanding of its “Corporate Governance”. ＊ Figures include one director and four executive officers who retired during Established by basic performance-based compensation, the subject fiscal year. additional compensation in relation to roles and Web https://www.bridgestone.com/corporate/library/corporate_goernance/pd/_eport_on_the_orporate_oernance_ode.pd responsibilities of directors and additional compensation in relation to roles and responsibilities of executive officers.

The Bridgestone Group − 62 − − 63 − Sustainability Report 2017-2018 Mobility : One Winner

Collaborative development of global digital solution platform

Bridgestone Corporation Bridgestone Europe NV/SA Bridgestone Tire Japan Co., Ltd. Bridgestone Asia Pacific Pte. Ltd. Bridgestone Americas Tire Operations, LLC

This atiity entails Groupide eort to deelop and deploy global digital tools in leet solution in order to ontribute leet ustoers in saer operations, higher economic benefits and lower environmental impacts. Toolbo one o the digital tools anages basi ustoer inoration as ell as their tires inoration Toolbo has already been deployed by ore than 80 ountries orldide ined ith other digital tools BSys and Tireatis Toolbo enables to proide greater ustoer alue hile developing tires that better reflect customer needs.

he ridgestone roup wards are a recognition program open to all organiations and employees o the ridgestone roup. he wards were People : Two Winners created with the purpose o increasing employee awareness o corporate actiities based on the ridgestone orporate hilosophy ostering a sense o Developing Community Trust with integrated Growth unity among roup employees and recogniing accomplishments. his recognition is the highest leel o awards within ridgestone roup and plays an important role in woring toward achieing the roups ultimate goal o Bridgestone India Private Ltd. (BSID) becoming a truly global company and anotsu apanese term or the absolute and clear leader in all aspects o our businesses. This atiity reognies Bridgestone ndias BS eort in building a ased on its orporate ocial esponsibility commitment ur ay to sustainable relationship ith the loal ounity in une ndia here its tire Bridgestone Group Serve”, the awards fall into five categories: “Achievement”, “Mobility”, “People”, plant is loated BS deeloped ounity trust through the onstrution nironment and anagement undamentals. ridgestones global executie committee members selected applications rom all global business o shools proision o health hes road saety lasses and other atiities Awards 2018 units to determine this years winners. s a result among all the arious actiities conducted by organiations and employees o the roup seen actiities were selected or recognition this year. Social Caravan: serving people and communities he ridgestone roup considers the ridgestone roup wards as an important management tool. Amid significant change in our operating Bridgestone Argentina S.A.I.C. (BSAR) enironment innoation and continuous improement is essential in order to secure a competitie adantage and create alue or both the customers and society. y recogniing outstanding actiities through the awards and sharing This atiity entails Bridgestone rgentinas BSR Soial araan proet BSR examples o best practices the company beliees they can achiee urther has ored together ith its staeholders inluding eployees and business improements across the entire roup. partners to delier truloads o donated supplies to rural shools that are la o he actiities selected or recognition are as ollows. resoures Sine the launh o this proet in 2010 the Soial araan hae 8 tons o supplies to ore than 200 students at 0 shools in seen proines o rgentina ith the help o 00 olunteers

Achievement : Two Winners Environment : One Winner

Launch of Global CSR commitment “Our Way to Serve” Development of Conveyor Belt materials with Zero Volatile Organic Compounds (VOC)

Bridgestone Corporation Bridgestone Europe NV/SA Bridgestone Mining Solutions Australia Pty. Ltd. Bridgestone Americas, Inc. Bridgestone Asia Pacific Pte. Ltd. This atiity entails the deelopent o oneyor belt spliing aterials that This atiity entails the launh o the ne global SR oitent The Group do not use olatile rgani opounds These produts hae launhed its ur ay to Sereglobal oitent to sere as a guide or all proided ustoers ith easier and saer oring enironents opared to Group eployees This oitent as deeloped by a proet tea siilar eisting aterials in addition to ontributing to reduing oprised o ebers ro around the orld that orulated the initial enironental ootprint ith ero onept or the global SR oitent as ell as a ouniation plan or its aterials used or onneting oneyor belts deployent ur ay to Sere as suessully launhed in arh 2017 Management Fundamentals : One Winner Innovative mixing technologies for next generation tread compounds with “Fueling our Future” - Recruitment with new digitally-enabled tools superior performances Bridgestone Europe NV/SA Bridgestone Europe NV/SA Bridgestone Corporation

This progra entailed the deelopent o a ne reruitent and This atiity reognies the deelopent o an innoatie iing tehnology on-boarding approah or Bridgestone uropes Tehnial enter T n that enables to ontrol nano-sale polyer oposites This tehnology an order to drie groth and innoation T needed to reate a pipeline o be used to produe high-uality tread aterials that ontribute to longer tehnial talent to enhane its produt deelopent and digital solutions wear life, higher fuel efficiency, and superior wet grip performance in tires. apabilities Through using a obination o digital tools as ell as proess e produts eploying suh tread aterials hae earned uh praise ro iproeents T as able to attrat a globally dierse group o edia and independent parties and hae thus helped bolstered sales in engineering talent hile reduing the oerall tie to hire uropean operations

The Bridgestone Group − 64 − − 65 − Sustainability Report 2017-2018 Third-party Assurance of Stakeholders Communication Environment Data and Social Data

Bridgestone has a long history o ebraing its responsibility to help adane sustainable deelopent and sole The Bridgestone Group reeied the assurane o a third-party institution to ensure transpareny opleteness

soial issues and auray o ater intae results and results o tests onerning 2020 2 eission redution targets and Soial Through proatie ouniation ith staeholders the opany sees to ailitate an aurate understanding data o the Bridgestone Group and its business atiities Bridgestone Group also uses ouniation as a eans o gathering inoration on the opinions ealuations and antiipations o staeholders so that this input an be inorporated into business atiities to ahiee ongoing iproeents ith a ie toard sustainable groth Gien the global nature o its business the Bridgestone Group is endeaoring to optiie all aspets o its ouniation atiities by establishing systes or transitting unior essages ith one oie The Bridgestone Group has ephasied ouniation ith arious staeholders t stries to lariy its responsibilities and the issues it aes ith regard to eah staeholder group and to utilie the ideal ouniation ethods and enues aordingly

Communication Activities of the Bridgestone Group aor staeholder esponsibilities and issues o groups the ridgestone roup ain communication methods and opportunities

eelopent o appealing Responses to ustoer ouniation enter inuiries daily produts and series nalysis database opilation and internal utiliation o as necessary Sit proision o ideal response ustoer input ustomers and support easures Rubber and tire useu Bridgestone T daily ppropriate inoration Transission o inoration ia ebsites and soial edia as necessary proision aily sales and serie atiities daily etie anageent o ustoer satisation surey as necessary ustoer inoration

ppropriate and tiely nnual Shareholders eeting arch inoration dislosure orporate Goernane Reports as necessary aiiation o orporate orporate Goernane ode-related reports as necessary alue inanial results reie eetings and id-Ter as necessary hareholders anageent lan eplanatory orus and inestors noration dislosure through inestor relations ebsite as necessary Reports based on nternational ntegrated Reporting raeor https://www.bridgestone.com/responsibilities/esgdata/pdf/third-party_assurance.pdf planatory orus or inestors times in ndiidual interies ith inestors as necessary

aily proureent atiities daily air and ipartial transations 2 eission data Sope 12 as proided through ealuation by a third-party institution roureent poliy eplanatory orusSR seinars times a year usiness rootion o SR based on S000 and onoring to S10- ater intae data as proided by partners proureent orulation and deployent o sustainable proureent poliies Supplier aards testing implemented by a third-party verification based on and conforming to ISAE3000. isussions ith anageent distributor eetings time a year Verification of primarily production based in 2 countries, 4 bases/facilities, was conducted by

Respet or huan rights ployee satisation sureys time a year on-site inspection; issues at the various bases were identified and solutions were proposed rootion o diersitydierse Group and noination-based trainings as necessary and ipleented oring styles ersonnel ealuation systes and areer deelopent onsultation as necessary nitiaties to urther redue 2 eission also are being ipleented tiliation o ideal huan n-house open appliation systes time a year resoures and deelopent o eetings beteen labor and anageent as necessary huan resoures mployees Transission and sharing o inoration through in-house as necessary rootion o oupational nesletters and intranet Locations where on-site inspection was implemented for third-party verification in 2018 health and saety and health and produtiity eetings alloing or diret ouniation beteen as necessary anageent eployees and anageent Bridgestone Group ards and other reard systes ward: time a year ailitation o utual ame o unction o emission and ame o acility ain products understanding beteen labor nternal eents related to the lypi and aralypi as necessary country water intae report and anageent Gaes ridgestone orporation Suary and report onerning lant tours or ounity ebers as necessary aounts o 2 eission S 12 ontributions to loal apan SR nironent uality anageent ー ounities nironental and saety eduation atiities as necessary lanning iision and ater intae at arious ailities nironental preseration Sponsorship and aid or loal eents as necessary ridgestone orporation ocal support through soial Bridgestone lypi aralypi a G G times in SR nironent uality anageent alulation and reporting o communities atiities orthern yushu torrential rain reoery support atiities time in apan lanning iision ー personnel-related and oupational tiities in regions ith ost-Great ast apan arthuae reonstrution support times in uan Resoures and abor Relations iision Saety isaster reention and nironental saety data Bridgestone operating sites atiities nhaneent iision ialogue and ollaborations ith Gs as necessary easureent o and report onerning →ain aoplishents in 2017 orulation o sustainable proureent poliy ridgestone orporation apan Tire aounts o 2 eission and ater urue lant ontributions to the ialogue and ollaborations ith eonoi and industry as necessary intae ro aility deelopent o a sae and organiations oernment oneyor belt daping rubber reliable obility soiety Engagement with government officials in countries of operation as necessary ridgestone orporation easureent o and report onerning agencies apan ibration redution rubber and aounts o 2 eission and ater ontributions to eduational artiipation in the Tire ndustry roet operated under as necessary industry oohaa lant other rubber-related produts atiities the orld Business ounil or Sustainable eelopent intae ro aility organiations nteration and ehanges o opinion ith uniipal as necessary and education olletion and ehange o easureent o and report onerning arious opinions regarding the goernent agenies institutions ndonesia T Bridgestone Suatra Rubber state Blo natural rubber aounts o 2 eission and ater supply hain ouniation oordination and support through as necessary intae ro aility ooperation ia industry-goernent-aadeia partnerships

The Bridgestone Group − 66 − − 67 − Sustainability Report 2017-2018 ESG Data ata on hih assurane is proided

Management-Related Data Social-Related Data

ata items ata items

Sales o the group 70 billion yen 7 billion yen billion yen GR102-7 uber o eployees Total 10 11 12 GR102-7 Rubber prodution olue 170000 tonnes 1800000 tonnes 1880000 tonnes GR102-7 apan 281 282 287 uber o eployees 10 11 12 GR102-7 The erias 072 078 70 uber o anuaturing ailities1 172 1 1 GR102-7 uropeRussia iddle ast ria 170 1720 1710 1 uber o ailities as o pril 1 eah year as o the end o eeber eah year or other data China, Asia & Pacific 81 722 70

Environment-Related Data Global eutie Total 1 1 1 GR0-1 oittee hih oreign ebers 8 ata items Global eber Rate o oreign ebers 8 2 00 ount o ra aterials used 811 thousand tonnes 7 thousand tonnes 0 thousand tonnes GR01-1 Executive Officers & Total 1 2 2 GR0-1 ount o reyled rubber 10 tonnes 1 tonnes 20 tonnes GR01-2 ie resident and Officers* Of which, foreign officers 7 12 Relaied produts rate - - 0 GR01- Rate of foreign officers 17 17 21 Total energy onsuption 1 thousand G 822 thousand G 0 thousand G GR02-1 rodut Saety Sites with ISO9001 certification*10 - 87 0 GR1-1 nergy onsuption uel2 8 thousand l 78 thousand l 712 thousand l GR02-1 as o the end o eeber eah year nergy onsuption eletriity thousand h 0 thousand h 802 thousand h GR02-1 Including officers who belong to Bridgestone’s subsidiaries. nergy onsuption stea 18 thousand G 177 thousand G 10 thousand G GR02-1 *10 Sites targeted by Bridgestone for ISO 9001 certification.

nergy onsuption per unit o sales 112 G100 illion yen 1 G100 illion yen 127 G100 illion yen GR02-

Redution olue o energy onsuption 112 thousand G 7 thousand G -17 thousand G GR02-

nergy onsuption outside o the organiation - 1702 thousand G 170 thousand G GR02-2 Governance-Related Data

Total ater intae 77 thousand 718 thousand 7021 thousand GR0-1 ata items ater intae surae ater thousand 702 thousand 802 thousand GR0-1 uber o diretors in iretors 12 GR102-18 ater intae groundater thousand thousand thousand GR0-1 1102 112 1178 Bridgestone orporation en 10 ater intae ater supply industrial ater 1 thousand 1 thousand 188 thousand GR0-1 as o pril 12018 oen ater intae seaater 1200 thousand 71 thousand 20 thousand GR0-1 2

olue o reyled ater 800 thousand thousand 28 thousand GR0- hih outside diretor 8 en Greenhouse gas eissions S 1 18 thousand t-2 1828 thousand t-2 122 thousand t-2 GR0-1 oen Greenhouse gas eissions S 2 202 thousand t-2 28 thousand t-2 2 thousand t-2 GR0-2 2

11 Greenhouse gas eissions S 1220 thousand t-2 1228 thousand t-2 12888 thousand t-2 GR0- iretors uber o persons 12 GR102-

2 eissions per unit in lieyle stages t-2100 illion yen 12 t-2100 illion yen 80 t-2100 illion yen GR0- Total ees 201 illion yen

2 eission redution rate in the operations 7 2 GR0- hih outside diretors11 uber o persons 7 and produts ater-useopared ith 200 eissions ro Bridgestone orporation tonnes 17 tonnes tonnes GR0-7 Total ees 10 illion yen

S eissions ro Bridgestone orporation 02 tonnes 7 tonnes 72 tonnes GR0-7 Executive Officers*11 uber o persons

Total ater disharge 17 thousand 71 thousand 728 thousand GR0-1 Total ees 8 illion yen

aste disharge 2 thousand tonnes 1 thousand tonnes 10 thousand tonnes GR0-2 11 Total nuberees ro anuary-eeber 2017 olue o reyled aste 2 thousand tonnes 28 thousand tonnes 280 thousand tonnes GR0-2

Reyling aste rate 8 1 0 GR0-2

Volume of waste landfill 1 thousand tonnes 2 thousand tonnes 2 thousand tonnes GR0-2

nestent in enironental preseration - billion yen billion yen - o Bridgestone orporation penses or enironental preseration - billion yen 71 billion yen - o Bridgestone orporation nironental preseration eetie aount 17 billion yen 21 billion yen 21 billion yen - o Bridgestone orporation Resoure produtiity7 0788illion yentonnes 0illion yentonnes 072illion yentonnes GR01-1

Sites with ISO 140001 certification*8 87 -

nironent-related data represents all Bridgestone Group plants or the period beteen anuary 1 201 and eeber 1 201 or 201 results beteen anuary 1 2016, and December 31, 2016, for 2016 results; and between January 1, 2017, and December 31, 2017, for 2017 results. Part of the data includes estimated figures. Because we refined past data, the data above differs slightly from Sustainability Report 2015. 2 nludes uels used or in-house poer generation alulated based on the nironental ounting Guidelines 200 ategory 8 1 and 1 are eluded o the 1 ategories in S o the GG protool inistry o the nironent apan 2 eissions per unit o sales produed ro lieyle stages ro proureent to anuaturing distribution and disposal 7 Sales per ra aterial used． alulated ith reerene to the nironental ounting Guidelines 200 inistry o the nironent apan *8 Sites targeted by Bridgestone for ISO 140001 certification.

The Bridgestone Group − 68 − − 69 − Sustainability Report 2017-2018 *Bridgestone Corporation*

CSR & Environmental Strategy Promotion Department 1-1, Kyobashi 3-chome, Chuo-ku, Tokyo 104-8340, Japan www.bridgestone.com

June 2018