The Toyota Tsusho Group’s fundamental philosophy comprises its corporate philosophy of “Living and prospering together with people, society, and the planet, we aim to be a value-generating corporation that contributes to the creation of prosperous societies” and its Global Code of Conduct & Ethics (COCE), which serves as its behavioral guidelines. This fundamental philosophy is positioned as the “Steadfast, overriding ideals that should be passed on through the generations.” We have so far enhanced our corporate value by engaging in environment-friendly businesses and developing people who will contribute to society.

The world today is facing problems such as abnormal weather related to climate change, forest destruction, resource exhaustion, and human rights issues. As such, when conducting business activities, society and the environment do not simply need to be considered; rather, they are prerequisites for engaging in business, essentially making them part of our business. Building a better society and global environment together with everyone is the essence of our sustainability, reflecting our belief that sustainability is synonymous with good management.

Under this approach, we are enhancing our initiatives aimed at realizing a sustainable society with a long-term perspective based on the three viewpoints of the environment, society, and governance.

We have identified six Key Sustainability Issues (Materiality) toward realizing a sustainable society. They comprise four material issues for both solving social issues and achieving corporate growth and two material issues that will become foundations for company growth.

Four material issues for both solving social issues and achieving company growth

The four material issues for both solving social issues and achieving company growth were combined with our growth-driving strengths to incorporate them into our growth strategy as seven priority domains. We will promote our sustainability initiatives by linking business growth in these seven priority domains to contributions to society and the environment and steadily advancing our strategies. Additionally, based on the thinking that structure follows strategy, we reorganized our organization together with the formulation of a new growth strategy, renamed our business divisions, and redefined their missions. The sales divisions will pursue their respective missions and evolve toward a future-oriented stance to accelerate the achievement of the new growth strategy.

Two material issues that will become foundations for company growth

The two material issues that will become foundations for company growth are to ensure safety and compliance and to respect human rights and develop people.

Ensuring safety and compliance is where we begin all work. Safety is about ensuring the physical and mental safety of our employees. Compliance refers to observing laws and regulations and developing organizations and cultures in which co-workers trust and support each other. Respecting human rights and developing people is based on the approach that we must nurture a culture that brings happiness to our employees and their families. Regarding respect for human rights, we bear in mind the need to cherish and always protect people, expanding our scope for doing so to our supply chain. As for developing people, we emphasize giving our employees a sense that they are contributing to society through their work and making sure that Toyota Tsusho actively provides them with such opportunities.

We have set key performance indicators (KPIs) for six material issues to monitor their social impact results and progress. Furthermore, as for financial impact results, we have divided our seven priority domains, which are highly linked to our materiality issues, into three value domains, set ROIC targets in our Mid-term Business Plan, and clarified the returns that should be achieved in each domain. In addition, we regularly review the KPIs themselves, based on the changing trends and needs of international society, as well as on the environmental changes enveloping Toyota Tsusho, the challenges we face, and others.

Our sustainability management going forward

We will address our material issues through the new growth strategy and a new organizational structure to build a better society and global environment together with everyone. At the same time, we will appropriately disclose such activities and work on engaging our stakeholders. Through engagement, we will come to understand our roles and responsibilities while pursuing our Global Vision of “Be the Right ONE (a one-and-only, essential presence)” to create and provide new worlds and value and contribute to the creation of prosperous societies.