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 <Chemical and industrial products> 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 <BSAM Diversified Products> 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 <Sporting goods> 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 <Bicycles> 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 <Others> 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 The ridgestone roup is the world’s largest tire and rubber company. Since the early stage o its establishment the roup started exporting its products as well as overseas marketing research a year after 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. We continue to contribute to solving social issues in an innovative manner respond to the demand o our stakeholders by effectively using our strength and competence which we have 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 3 17% 16% 19% 470,000 470,000 age* 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 Tires Europe, Russia, 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 *1 Indicates locations that have obtained ISO 14001 certification 1 improvement waste ratio* reclaimed rubbers emissions *2 ndicates manuacturing plants that hae obtained (Base year:2005) ISO 14001 certification cope*2 cope*2 *3 ridgestone orporation nly thousand 1.4% *4 ategory and are excluded o the tonnes 1.8% categories in o the protocol 37% 90% 20.4 *5 Sites targeted by Bridgestone for ISO 9001 certification Total amount of emissions in 017 cope*4 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)