CSR Activity Report (CSR Guideline Activity Reports)

Risk Management

Under normal conditions, assess and analyze risks, and strive to mitigate and prevent them from materializing; and in the event of a crisis that could have a significant impact on management activities, strive to prevent damage from increasing, by bringing the situation quickly under control and normalizing conditions with a prompt and appropriate response

Basic Approach

Toray Group regularly identifies potential management risks affecting the Group’s management activities in order to mitigate risks and seeks to prevent a crisis. In addition, the Group strives to prevent damage from spreading and to promptly control and normalize the situation by ensuring quick and appropriate responses using the emergency quick response system it has established.


The risks affecting Toray Group are constantly changing, and the Group recognizes the critical importance of reinforcing its system for responding to risks that materialize suddenly due to changes in the surrounding environment and for responding promptly when crises do occur. To this end, Toray Industries, Inc. established a dedicated team within the Corporate Strategic Planning Division to communicate closely with the Board of Directors and top management and to pursue risk management as an integral part of management strategy. This team manages overall risk under normal conditions and ensures a quick response when crises do occur.
The general manager of the Corporate Strategic Planning Division regularly reports on the status of risk management to the Board of Directors and makes certain to inform the Board when a critical issue or emergency arises. In April 2021, a new department to deal with economic security risks was also established within the Corporate Strategic Planning Division. It is working to gather information both in and outside the Company and mitigate risks.

Structure of the Risk Management Committee

Chaired by the general manager of the Corporate Strategic Planning Division,1 the Risk Management Committee is tasked with reviewing, discussing and promoting shared awareness of risk management across the entire Toray Group. This committee primarily carries out priority risk mitigation activities as part of regular risk management. In addition, the Overseas Crisis Management Committee and local crisis management committees, which manage employees’ overseas travel under normal conditions and compile information on overseas risks, have also been made subordinate to the Risk Management Committee. The committee keeps the Board of Directors regularly informed about the contents of its discussions and reporting matters.

Risk Management Committee System
Risk Management Committee System
  1. 1 As of July 2023, a senior vice president (member of the board) serves as the Risk Management Committee Chair.

Strengthening the Emergency Quick Response System

Toray Group has established Risk Management Regulations, a set of clear fundamental principles that form the basis of a company-wide response in the event of a major crisis. The Group works to ensure the thorough implementation of these rules when required. Moreover, the Group reviews the rules as appropriate to prepare for new risks that emerge due to changes in the social environment. In order to ensure quick management decisions especially in the event of a crisis, Toray Group has clarified the reporting channel from a department where a crisis has occurred, covering group companies in and outside of Japan.

Emergency Quick Response System
Emergency Quick Response System

CSR Roadmap 2022 Targets

CSR Roadmap goals

  1. Strengthen corporate risk management throughout the Toray Group and mitigate risks
  2. Instill greater risk management among employees by rolling out risk management education throughout the Toray Group

Main Initiatives and Key Performance Indicators

⑴ Follow up on Toray’s priority risks
⑵ Conduct periodic risk management (priority risk mitigation activities through a three-year cycle) and routine risk management (observing trends in and outside Japan, and establish a group-wide system to respond to risks that may have a significant impact on management, as identified through research and analysis, as “specified risks”); and in the event of a group-wide crisis, respond appropriately in accordance with the Risk Management Regulations
⑶ Regarding major earthquakes in Japan, prepare and regularly review business continuity plans for key products, and conduct regular drills to establish a group-wide emergency response headquarters
⑷ Regarding information security risks, monitor and bolster the contents of communications and enhance education and training on the risk of cyberattacks and information leakage
⑸ Provide risk management education
Key Performance Indicator (KPI) Target Fiscal 2022 Result
Fiscal 2020 Fiscal 2021 Fiscal 2022
100% 100% 100% 100%
100% 100% 100% 100%
  1. Reporting scope : Toray Group

Related Materiality for CSR

  • Strengthening Corporate Governance
  1. * Click here for the Materiality View of CSR Roadmap 2025 (PDF:392.4KB).PDF

Looking to the Future

Under its CSR Roadmap 2025, Toray Group set the following new goals:

  1. Reduce risks by identifying and mitigating risks that affect the resolution of management issues across the Group
  2. Enhance internal controls across the Group and raise the level of risk mitigation efforts
  3. Instill greater risk management among employees by rolling out risk management education throughout the Toray Group

To achieve these goals, Toray Group will continue to periodically and routinely identify potential risks in management activities, prevent and mitigate risks, and prevent crises from ever occurring.
As part of its group-wide priority risk mitigation activities, Toray Group listed its fifth three-year set of priority risks in fiscal 2021, and has since promoted initiatives to address these priority risks, namely information security, global CSR procurement, and business continuity risks from water hazards. Toray Group completed confirmation of the current situation and established mitigation measures for business continuity risks from water hazards, thereby finishing the activities for that priority risk in fiscal 2021.
Although priority risk mitigation activities have in principle been carried out in three-year periods, in order to promote risk management that can help achieve management goals, the fifth three-year set of priority risks was ended one year ahead of schedule in fiscal 2022, at the same time as Project AP-G 2022, the Medium-Term Management Program covering the period from fiscal 2020 to fiscal 2022.
The risks listed under the fifth set of priority risks will still continue to be managed appropriately by relevant departments.
The sixth three-year set of priority risks is now in place for the period from fiscal 2023 to fiscal 2025, which coincides with the Group’s current Medium-Term Management Program, Project AP-G 2025. Having specified the two priority risks, namely, crisis response risks based on the possibility of war and product supply disruption risk, Toray Group is working to mitigate these risks to help achieve the Management Program.

Click here for the main initiatives and KPIs for CSR Guideline No. 5 “Risk Management” during the CSR Roadmap 2025 period (fiscal 2023–2025).PDF

Fiscal 2022 CSR Activity Report

Click bellow on activity reports for fiscal 2022.