Stance on Sustainability
The Toyota Tsusho Group has positioned its corporate philosophy of living and prospering together with people, society, and the planet, and 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 Toyota Tsusho Group 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, making them essentially targets for our business today. 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 environmental, social, and governance (ESG) viewpoints.
For the Toyota Tsusho Group, sustainability is synonymous with good management. In striving toward the manifestation of our corporate philosophy, which expresses the group’s reason for existence and ideal image and clarifies the group’s determination to engage in management, we define sustainability as the generation of economic value while maintaining and enhancing environmental and social value, which will enable the group to continue experiencing sustainable growth.
While engaging in sustainable management, Toyota Tsusho identified Key Sustainability Issues (Materiality) that it will address with priority. Focusing on these six Materialities, we are tackling various social issues to achieve our corporate philosophy by pursuing our Global Vision to “Be the Right ONE” and become an irreplaceable and one-and-only presence.
Sustainability Promotion Structure
The Toyota Tsusho Group has conducted activities under the leadership of Toyota Tsusho’s Corporate Planning Department based on the idea that sustainability is synonymous with good management. To promote the further enhancement of the group’s stance on sustainability, Toyota Tsusho established within its Corporate Planning Department the specialized Sustainability Management Group in April 2019.
The Sustainability Management Committee is convened by the President, who serves as the committee chairperson. Under the CSO, the Sustainability Management Group of the Corporate Planning Department serves as secretariat. Two outside members of the board (outside directors) with insight particularly in the area of sustainability had participated and provided advice since the fiscal year ended March 31, 2018. But starting in the fiscal year ending March 31, 2023, all four outside directors have been participating in committee meetings, as we strengthen our structure so that we can utilize broad knowledge from outside the company in the area of sustainability management. Furthermore, the chairman of the Board of Directors and Audit & Supervisory Board members participate in the meetings as observers.
Content to be discussed by the Sustainability Committee and responses to issues such as climate change, human capital, and human rights will be reported as appropriate to the Board of Directors and action will be taken.
The planning department of each sales division appoints a staff member responsible for sustainability who collaborates as appropriate with the Sustainability Management Group.
Sustainability Management Committee
Toyota Tsusho holds a Sustainability Management Committee meeting annually to discuss, decide on, and promote our sustainability strategies and policies. The committee is summoned by the president & CEO, who serves as the chair of the committee, and the Sustainability Management Group of the Corporate Planning Department serves as the secretariat under the CSO. Attendees include the president, executive vice presidents, sales division CEOs, relevant officers of the Administrative Unit, and other key members of the committee.
Two outside members of the board (outside directors) with insight particularly in the area of sustainability had participated and provided advice since the fiscal year ended March 31, 2018. But starting in the fiscal year ending March 31, 2023, all four outside directors have been participating in committee meetings, as we strengthen our structure so that we can utilize broad knowledge from outside the company in the area of sustainability management. Furthermore, the chairman of the Board of Directors and Audit & Supervisory Board members participate in the meetings as observers.
Sustainability promotion measures are planned and formulated by the Sustainability Management Group of the Corporate Planning Department, approved by the Sustainability Management Committee, then implemented by each organization. Based on the idea that sustainability is synonymous with good management, formulation and review of each basic policy and Materiality, as well as key issues from the perspectives of environmental value, social value, and economic value, are discussed and decided on by the Sustainability Management Committee while incorporating an independent and outside perspective. Contents discussed by the Sustainability Management Committee and responses to other key issues such as human rights and climate change are reported as appropriate to the Board of Directors and actions are taken.
At the Sustainability Management Committee meeting held in December 2021, the main topics of discussion were: Understanding domestic and international trends in sustainability, analyzing the impact of climate change on our company (including our response to the TCFD recommendations), and human rights due diligence in our supply chains, among other ESG issues. The committee also revised some of the Materiality KPIs that the company established in 2020 as indicators of how the Toyota Tsusho Group’s business activities are contributing to the realization of the UN Sustainable Development Goals (SDGs).
As for the promotion of sustainability in business activities, the division CEOs and the CSO reported on the progress of integrating sustainability and Materiality into their division and department strategies and shared their review of this fiscal year, progress in KPI implementation, and future targets and issues, thereby facilitating discussions to further solve issues.
The outside directors participating as advisors pointed out that "sustainability initiatives are not a goal to strive for, but essential rules for conducting business." We will further accelerate our sustainability management as a corporate group and make efforts to achieve the sustainable growth of the company and contribute to solving social issues on a company-wide scale.
Global Code of Conduct & Ethics (COCE)
Toyota Tsusho established and announced the Global Code of Conduct & Ethics (COCE), a more concrete statement of the Behavioral Guidelines, which support the Corporate Philosophy, on July 1, 2016. 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 achieve the Global Vision through thorough understanding and practice of the COCE.
Global Code of Conduct & Ethics (10 creeds)
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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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)