Stance on Sustainability
Toyota Tsusho has positioned its corporate philosophy of "Living and prospering together with people, society, and the planet to be a value-generating corporation that contributes to the creation of prosperous societies" as its highest unchanging concept, which should be handed down through the generations. The company has enhanced its corporate value by engaging in environment-friendly businesses and developing human resources who are valuable to and contribute to society.
The world today is facing such problems as abnormal weather related to climate change, forest destruction, resource exhaustion, and human rights issues. When conducting business activities, the environment and society do not simply need to be "considered," rather, they are "prerequisites" for engaging in business, essentially making them targets for our business today. For companies, environmental and social issues are both risks and opportunities. In this context, Toyota Tsusho is developing its conventional corporate social responsibility (CSR) activities and enhancing its initiatives aimed at realizing a sustainable society with a long-term perspective based on ESG viewpoints.
For Toyota Tsusho, sustainability is synonymous with good management. In striving toward the manifestation of our corporate philosophy, our sustainability management is defined as our continuous and sustainable growth, enhancing value created for society and the environment, and value created by Toyota Tsusho with its customers.
While engaging in sustainable management, Toyota Tsusho identified Key Sustainability Issues (Materiality*) that it will address with priority. Focusing on these six material issues, we are tackling various social issues to achieve our corporate philosophy by pursuing our Global Vision to "Be the Right ONE" and become a one-and-only, essential presence.
Sustainability Promotion Structure
Promotion Structure
As shown in the diagram below, in Toyota Tsusho's sustainability management promotion structure, the president & CEO (Chairperson) convenes the Sustainability Management Committee under the supervision of the Board of Directors meeting, and reports the discussions and decisions of the committee to the Board of Directors meeting. In addition, members of the Board have abundant competence and experience in ESG-related issues, and a system is in place to ensure appropriate supervision by the Board of Directors meeting. Furthermore, each relevant meeting body*1 discusses specific themes related to sustainability, and in particular, climate change is discussed at the Carbon Neutrality Promotion Meeting, which is chaired by the president & CEO and meets monthly to discuss strategies for the transition to a decarbonized society.
Under the supervision of the CSO (Hiroshi Tominaga, member of the Board), who is the officer in charge of sustainability, the Sustainability Management Group of the Corporate Planning Department serves as the secretariat and implements sustainability promotion measures in cooperation with each sales division, Administrative Unit, and group company.
The planning department of each sales division appoints a staff member responsible for sustainability who collaborates as appropriate with the Sustainability Management Group. In April 2021, we established the Sustainability Administrative Unit Subcommittee to strengthen cooperation among related departments in the Administrative Unit. The subcommittee meets once every two months to share information and discuss various issues at the General Manager level and take prompt action.
Sustainability Management Committee
The Sustainability Management Committee meets annually. The committee is chaired by the president & CEO and includes executive vice presidents, sales division CEOs, and relevant Administrative Unit officers as well as four outside members of the Board as advisors and the chairman of the Board and Audit & Supervisory Board members (full-time) as observers.
The committee determines important sustainability-related policies, then discusses and decides on social trends and the company's response to them.
The main agenda for the committee meeting in December 2023 is listed below, and a report on the deliberations was presented at the Board of Directors meeting held in December 2023.
[Main Agenda]
- Confirmation of the company’s basic stance on sustainability
- Report and discussion on the company’s review of the fiscal year ending March 31, 2024 and medium- to long-term initiatives
- Approval of changes to Materiality KPIs
- Discussion on future responses based on initiatives for materiality and changes in the external environment
- Comments from the chairman and outside members of the Board
The outside members of the Board participating as advisors commented that “we shall continuously review the state of Materiality KPIs” and “consider internal and external communication so that many people will agree with our global initiatives to contribute to sustainability and want to work with us.” We will continue to consider reviewing our Materiality KPIs and further strengthen information disclosure and dialogues with internal and external stakeholders through our integrated reports and website.
In addition, an Administrative Unit subcommittee meeting is held once every two months for the heads of departments related to the Administrative Unit to steadily address sustainability issues, including matters discussed and decided by the committee.
Spreading Awareness Among Employees
We have incorporated “contribution to the community, society, and the future” as an employee evaluation indicator to encourage individual employees to approach one’s duties with an awareness of the need to solve social issues. In addition, we conducted in-house training on human rights due diligence in 2023 to promote a deeper understanding of human rights and held explanatory meetings at each of our bases in Japan and overseas. Training on sustainability and material issues is also conducted annually for new employees, including mid-career hires, to make them aware of the importance of these issues.
Global Code of Conduct & Ethics (COCE)
Toyota Tsusho established the Global Code of Conduct & Ethics (COCE) in 2016, following a resolution by the Board of Directors, as a more concrete expression of the Behavioral Guidelines that supports the Corporate Philosophy. The COCE was formulated collectively by Group employees in Japan and overseas and has been translated into 23 languages. The COCE serves as a shared, global statement of conduct and ethical norms applicable to all Toyota Tsusho Group officers and employees, and we seek to realize the Corporate Philosophy and Global Vision through thorough understanding and practice of the COCE.
1.We are committed to "ANZEN" to create a safe and healthy work environment.
Ensuing the safety and health of all officers and employees is the very foundation of corporate activities within the Toyota Tsusho Group.
Accordingly,
- We will build suitable structures to protect each other's safety and health as well as the safety and health of all people who may be affected by Group corporate activities.
- We will comply with all laws, regulations, and internal standards relating to safety and health.
- We will actively participate in education, training, and other programs relating to safety and health.
- We will use and develop Group safety and health management systems.
2.We will comply with all applicable laws and regulations; including anti-corruption, anti-trust and competition law, and trade laws and regulations.
Compliance with laws and regulations is a fundamental that is absolutely essential for all Group corporate activities. Even a single violation could result in substantial loss of or harm to social confidence in the Group and could result in substantial impairment of corporate value.
Accordingly,
- We will understand and comply at all times with all applicable laws and regulations (including international arrangements).
- If we have any doubts concerning the interpretation of laws and regulations, we will always seek advice from a legal department or outside attorney.
- We will be sure to report all violations through appropriate channels.
Even a single violation of laws and regulations relating to anti-corruption, anti-trust and competition, and international trade can result in substantial harm to both the company and individuals including massive fines, imprisonment, and difficult-to-recover loss of social trust and the like.
Accordingly,
- We will adequately familiarize ourselves with laws and regulations relating to anti-corruption, anti-trust and competition , and international trade and comply strictly with them at all times.
- We will not offer, provide, or accept entertainment, gifts, or other benefit intended to evade laws, regulations, or ethics.
- We will not engage in any conduct whatsoever that may be in violation of fair market competition or anti-trust laws.
- We will exercise particular care when interacting with personnel from other companies in the same industry. Specifically, we will not discuss sensitive information such as market shares, sales strategies, prices, and pricing strategies.
- We will be cognizant of potential prohibitions or restrictions on trade in specific goods or regions or with certain people or organizations and exercise meticulous care to ensure that all international trade complies with applicable laws and regulations and this conducted properly.
3.We are committed to accurate financial reporting.
As a publicly-listed corporate group, accurate financial information is crucial for both us and our stakeholders.
Accordingly,
- We will exercise meticulous care regarding the accuracy of publicly-released or filed quantitative data.
- We will comply with applicable accounting principles.
- We will provide timely disclosures of accurate accounting information to prevent misunderstanding.
- We will retain accurate, reliable, and verifiable records concerning all transactions.
4.We are accountable for compliance with all company rules.
- We will understand and comply with all company rules.
- We understand that we are fully accountable for violations of company rules and may be subject to disciplinary measures in cases of violations.
5.We will act with integrity, honesty and transparency, and protect and develop trust among all stakeholders.
As good corporate citizens, we have a responsibility not only to comply with laws, regulations, and rules, but more broadly, to conduct corporate activities with integrity, honesty and transparency. We are confident that by fulfilling this responsibility, we can develop relationships of trusts with stakeholders and build the foundations of corporate activities.
Accordingly,
- We will not only pursue benefit for ourselves, but also strive to gain the trust of various stakeholders by taking into consideration their interests.
- We will conduct only corporate activities that can stand up to the ethical evaluations of local communities and international society.
- We will protect and properly manage the confidential information, personal information, intellectual property rights, trade secrets, and so on of our own and others.
- We will not engage in any business whatsoever with persons (including corporations and associations) who engage in or are involved in criminal conduct or organized crime.
- We will not make false or misleading statements or make statements or engage in other conduct that harms the honor, reputation, and so on of others. If we make a mistake, we will immediately correct it.
- If our own interests are contrary to our responsibilities to the company, we will disclose those facts to the company, act in the best interests of the company, and not pursue our own interests.
- We will not use company property for any purposes other than the company's business.
- We will not engage in any insider trading whatsoever.
6.We will contribute to the sustainable development of society.
We believe deeply that harmony and development with people, society, and the earth are the keys to the sustainable growth of the Group.
Accordingly,
- We will collaborate with local businesses, communities, governmental authorities, and others in each region of the world in order to maintain an understanding at all times of local and global needs and contribute to the formation of foundations for the sustainable development of industry, economies, and societies.
- We will actively undertake social contribution measures with a focus on education, social welfare, and the environment.
7. We will promote and pursue environmentally friendly corporate activities.
Achieving harmony between Group corporate activities and the environment is deeply rooted in the Group's Fundamental Philosophy.
Accordingly,
- We will comply strictly with relevant environmental laws, regulations, and standards (including international standards).
- We will develop and promote environmentally-friendly technologies, services, products, and business models.
- We will strive to curtail the generation of and to reuse and recycle waste material in our corporate activities.
- We will give due consideration to the environment when engaging in corporate activities.
- We will closely monitor and assess the impact of our corporate activities on the environment by using environmental management systems.
8.We will add value through innovation and "Kaizen" (continuous improvement).
In order to contribute to a continuously-changing society and maintain sustainable growth, it is essential that we provide new ideas and added value to society and engage in Kaizen (continuous improvement) with respect to corporate activities.
Accordingly,
- We will share and link diverse ideas, technologies, skills, specializations, and so on through our global networks and value chains.
- We will thoroughly implement PDCA and Kaizen (continuous improvement) to endlessly improve business models and processes.
- We will actively expand creativity and Kaizen (continuous improvement) to all areas of new fields and value chains.
9.We will respect human rights.
Respect for human rights is deeply rooted in the Group's Fundamental Philosophy. We will not tolerate any violations of human rights whatsoever.
In particular,
- We will not participate in any business that violates personal dignity.
- We will not engage in any discrimination on the basis of race, skin color, sex, creed, or nationality.
- We will not participate in child labor, human trafficking, or any other form of compulsory labor.
- We will not tolerate any type of harassment whatsoever.
- We will not conduct any business or be involved with persons (including corporations and associations) engaged in or associated with violations of human rights.
10.We will embrace diversity and inclusion within our company and society.
We believe that respecting diversity and making use of differences are sources of creativity and growth. It is precisely because we secure diversity and use different perspectives that we are able to adapt to the steadily increasing pace of change in the management environment and the needs of customers around the world.
Accordingly,
- We will encourage the creation of workplace environments that promote active collaboration among people of different races, nationalities, sexes, and ages and secure diversity.
- We will encourage the provision of equal opportunities to all officers and employees regardless of race, nationality, and sex.
- We will promote open communications among all officers and employees and between all levels within organizations.
- We will make use of post-merger integration (PMI) experience and know-how to achieve superiority.
Booklet of Global Code of Conduct & Ethics(COCE)
The booklet provides behavioral guidelines regarding the 10 creeds of the Global Code of Conduct & Ethics (COCE) in greater detail.