Social | Talent creativity
Enhancing productivity and creativity (Talent creativity) of every employee

The Group^* strives to enhance corporate value by added value creation aligned with its business strategy in seeking to promote its talent strategy aligned with its business strategy.
At the same time, the Group engages in various initiatives in striving to achieve sustainable growth with its sights set on maximizing added value and enhancing productivity and creativity of every employee.
The group does this by setting the axis of our Talent strategy, which aims to allow diverse talents to shine through spreading success and gaining confidence of individuals. The Group began experimenting with “Talent creativity” as a benchmark reflecting such initiatives in 2023 and introduced “Talent creativity” as a global management KPI to the Mid Term Business Plan (2024-2026).The Group’s basic approach to “Talent creativity” is reinforcing talent investment to increase added value and create a virtuous cycle of value creation. The Group sets the “Talent creativity KPI” as one standard as a global company and works on issues by region / by country while tracking global progress through its KPI (adjusted operating profit (value added) divided by talent investment (sum of labor expense, training and development expense, and welfare and benefit expense).

In seeking to promote this talent strategy and enhance Talent creativity, the Group engages in initiatives to address its globally common priority items of “Securing Bridgestone-like talent“, “Talent development“, “Improving Working Environment“, and “Creating a place where diverse talent can shine“. The Group has also embarked on initiatives for visualization of both talent and position in seeking to promote and strengthen its talent portfolio in alignment with its business strategy.

Since its founding, the Group has been expanding and evolving its business to meet the changing needs of society while continuing to support the mobility of people and objects with safety and peace of mind, guided by its unwavering mission of “Serving Society with Superior Quality.” Bridgestone DNA has been shaped and refined over the course of its history through its journey of taking on challenges. This includes the Group's "focus on quality," "respect for being on-site (Genbutsu-Genba)," "being attentive and supportive of customer problems," and championing a "challenging spirit". The Group believes that “Securing Bridgestone-like talent” in terms of individuals who empathize with and embody these four elements of its DNA is essential when it comes to its aims of working toward the notion of “becoming a resilient “excellent” Bridgestone that transforms change into opportunity, unperturbed by continuous change while remaining robust and flexible like rubber,” as set forth in the “2030 Long Term Strategic Aspiration-Bridgestone 3.0 Journey,” and also for Management, Working & business quality improvement, namely entailing the objective of “Create good business quality,” in the Mid Term Business Plan (2024-2026) with 2024 as the first year. And the foundation of this is the Group’s unique “Deming Plan,” which was formulated in the 1960s toward receiving the Deming Application Prize, given to companies that demonstrate distinguished and comprehensive quality management. The Group was awarded the Deming Application Prize in 1968, and its quality management activities are strongly reflected in the Group’s mission of “Serving Society with Superior Quality” and “focus on quality”, which is part of Bridgestone DNA. The Group’s “Continuous Improvement” activities implemented on-site while embodying the notion of “respect for being on-site (Genbutsu-Genba)” serve as ‘its global asset. The Group accordingly believes that improving working & business quality derives from its pursuit of operational excellence, meaning that the Group always aims to improve productivity and to perform high quality work in all of its operations. This is achieved by promoting continuous improvement and innovation amid a scenario where everyone from the Group’s leaders and the organization overall to each and every employee embrace this asset. In seeking to re-enhance understanding regarding Bridgestone’s unique Deming Plan, the Group began reinforcing its Management quality and working & business quality improvement workshop starting with the Company’s management in 2023. The Group will extend it to a wider level (executive / managerial / staff) and expand it globally in 2024. Global EXCO members attended a workshop in Kurume, Bridgestone’s birthplace, in March 2024.

Talent Development (Enhancing “Challenging Spirit”, Leadership training, Digital training, Training for a wide range of employees)

The Group promotes talent development based on a talent strategy aligned with its business strategy. In seeking to realize objectives of the “2030 Long Term Strategic Aspiration” while executing the Mid Term Business Plan (2024-2026), the Group is proceeding with efforts to strengthen Bridgestone DNA. The Group is also accelerating implementation of talent development measures that give rise to a situation where self-driven talent motivated to take on challenges and achieve growth spur value creation, thereby ensuring that growth of the Company and that of each and every employee go hand in hand. The Group aims to increase added value and create a virtuous cycle of value creation, which leads to the improvement of employee engagement.
The approaches in each area of talent development and regional initiatives are as follows:

1. Enhancing “Challenging Spirit”
   The Group has been making progress in developing “opportunities for diverse talent to shine and take on various challenges,” as part of its approach to enhancing a “challenging spirit”. This is especially true in the exploratory business where, in addition to forming alliances with external partners, the Group has established a corporate venture, Softrobotics Ventures. Softrobotics Ventures brings together diverse talent with an entrepreneurial spirit to create new businesses from scratch to take on the challenge of early commercialization. The Group encompasses a wide range of business domains, including premium tires, solutions, and diversified products, spanning the entire value chain from upstream (raw materials) to downstream (sale and services). Meanwhile, the Group believes that embodying the notion of a "challenge spirit" through active engagement is essential in providing further value to its stakeholders, irrespective of the business domain and value chain. The Group launched its “Genba (on-site) 100-Day Challenge Program” from Japan in 2023 and will further extend the reach of the program globally from 2024 onward, thereby encouraging even more employees to take on challenges.
2. Leadership training
   The Group engages in business throughout more than 150 different countries, with approximately 80% of its sales generated overseas. As the Group builds a more advanced “glocal” management structure, developing the next generation of management leaders is a business imperative. Management leaders should be equipped with both business expertise and cross-cultural leadership capabilities with the aim of supporting future sustainable growth and greater corporate value. As the Group pushes forward with leadership development regionally, it has also been developing "Bridgestone NEXT100", a program to develop the next-generation management leaders. This program involves nominating approximately 100 talents globally each year to take part in this program, and in part by having them participate in various management and executive meetings, as well as overseas business school training programs. Over 180 talents have participated in "Bridgestone NEXT100" so far and two of them were promoted to executive officer positions in January 2024.
3. Digital training
   The Group believes that creation of social value and customer value by combining its strong real with digital power approaches is essential for achieving objectives of the Mid Term Business Plan (2024-2026) and for realizing objectives of the “2030 Long Term Strategic Aspiration-Bridgestone 3.0 Journey₋.” In the digital field, the Group has been developing and acquiring digital talent globally. As of 2023, the Group has a digital talents workforce of approximately 1,600 people globally. Since its introduction in 2023, more than 700 people company-wide have participated in the “Digital 100-Day Training”. The program is designed for a wide range of knowledge levels and allows employees to select a program that matches individual digital skill level. Based on the concept of faster, easier, and more accurate with larger data, the Group will evolve value creation by combining its strong real, such as on-site capabilities that the Group has cultivated, with digital power. The Group continues develop and acquire digital talent in various regions, with the goal of expanding to a level of 2,000 people on a global basis by 2026.
4. Training for a wide range of employees
   The Group provides motivated talent with opportunities for engaging in continuous learning (training and education) and taking on challenges as a way to improve the productivity and creativity of every employee. The Group accordingly believes this goes hand in hand with achieving growth of the Company and that of each and every employee, which is very important in its transformation to a resilient “excellent” Bridgestone. The Group will invest in talent development with respect to opportunities for learning and taking on challenges on a Group-wide basis, taking into account circumstances in respective regions and countries.
   In 2023, the Group invested a total of 2,363,276 hours on employee training across the organization. This is equivalent to an average of 19.6 hours (2.6 workdays^*1) per employee per year.

1. Converted 7.5 hours per day as working hours.
2. Training sessions were cancelled or postponed due to the COVID-19.

Based on the belief that the success of diverse talent leads to the creation of value as expressed in the “Bridgestone E8 Commitment,” the Group has created a workplace environment where each and every employee can play an active role. Positioning the improvement of employee engagement as one of the key issues in globally promoting culture changes in line with the “Bridgestone E8 Commitment,” the Group has started to conduct monitoring through engagement surveys and shares good practices from each region. Moreover, the Group began conducting globally unified engagement surveys^*1*2 in 2023. These surveys seek to deepen and make progress on initiatives based on a common evaluation and activity framework globally, while respecting regional differences in cultures and characteristics.

Global common strength and further improvement items based on the result of engagement survey

The Group’s foundation for corporate management is the notion of “Safety First, Always,” as set forth in its Safety Mission Statement. Promoting activities to ensure every employee is able to work in a safe workplace with peace of mind is an expectation not only of employees but also of our customers and other stakeholders. As such, this Safety Mission Statement is furthermore essential in ensuring industrial safety and hygiene with respect to the Group’s employees and contractors through the application of stringent safety standards. These standards must continue to evolve as the Group continuously learns from experience, while ergonomic risks increase with the aging of populations, as regulations change, as machinery and equipment ages and as new technologies are progressively introduced at its sites. The Group is also proactively promoting the highest levels of safety culture within the new businesses it develops or acquires.

Additionally, to improve the manufacturing site environment, the Group is also implementing quick-impact investments that reflect the voices of employees who work at “Genba (on-site)” and are working to enhance benefits, improve the workplace environment, and reduce the workload.

The Group has been making further progress in developing opportunities for diverse talent to shine and take on various challenges through multiple initiatives. The Group’s aim entails enhancing employee engagement, creating a new DNA in line with the value creation of the “Bridgestone E8 Commitment,” promoting culture change, and developing female leadership talent as well as arranging for assignment and placement of such talent. The eight words starting with the letter “E” set forth under the “Bridgestone E8 Commitment” symbolize the axis and guiding principle of Bridgestone-like value creation. They are incorporated into the Bridgestone Group Awards (BGA), the highest level of employee recognition in the Group, and the Total Quality Management (TQM) Conference as major review standards. They are also embedded into daily business and on-site improvement activities. Through engagement surveys and other surveys for gauging various attitudes and behaviors, the Group will visualize the progress and enhance the quality and level of its activities while implementing PDCA cycles.

1. Questions on Employee Engagement (commitment/motivation) and Employee Enablement (the right persons in the right positions/working environments to support employees) are answered using a six-point scale (Strongly Agree/ Agree/ Neutral/ Disagree/ Strongly Disagree/ Don't know or don't apply) to ascertain conditions across the company, in each department, and each workplace.
2. Global respondent: 89% in the survey of 2023:

Regional initiatives

Japan

In Japan, Bridgestone is taking action to catch up with and bridge the disparities relative to the Group’s overseas locations when it comes to engagement and the domain of diversity, equity and inclusion (DE&I).

Improvement of employee engagement:
In 2020, Bridgestone switched from using the Employee Satisfaction Survey, which measures the level of satisfaction with working environments, to an Employee Engagement Survey, which measures employees’ motivation to self-directed work and creating a sense of connection with the Company. In 2022, to more frequently implement PDCA cycles for its activities, the Company implemented a quarterly pulse survey to gauge the efficacy of activities and organizational conditions. By analyzing these results, recognizing that there are engagement issues compared to other regions, identifying issues, and making improvements—and implementing this process in line with the characteristics of each organization and workplace—the Company is independently moving forward with activities to improve engagement and create better workplaces. The Company conducts the initiatives to improve employee engagement for value creation as follows:

• Training in place of founding　(Kurume visit)
  The Company has introduced a training program in Kurume, the place of its founding, for newly appointed managers and new employees. This program helps to instill pride with respect to working for the Group, thereby providing an opportunity to further experience the founder’s thoughts, Bridgestone DNA and the Bridgestone Essence (corporate philosophy). The Company creates opportunities for not only employees working in Japan but also for members of Global EXCO and the participants of overseas business school training programs in "Bridgestone NEXT100", a program to develop the next-generation management leaders which includes employees from overseas locations.

• Continuous town hall meetings
  The Company continues to provide opportunities for the management team and employees to interact through town hall meetings to motivate employees to contribute to the Company and grow, and also to reflect employees’ opinions back into company operations.

Development of a foundation for DE&I promotion:
In order to develop a foundation for diverse talent to shine, the Company has been promoting a variety of initiatives unique to Bridgestone. This has entailed increasing focus on promoting the development and assignment of female leaders in seeking to respect diverse values and promote diversity in decision-making as an organization. This has also entailed developing a foundation for diverse talent to shine by arranging DE&I management workshops for all line managers and introducing a FemTech program to address women-specific health issues using technology. For further information, please refer to the website – “Respecting diversity, equity and inclusion (DE&I)”.

China, Asia-Pacific region

BSAPIC has made employee health and well-being a top priority with the philosophy “Safety First, Show Care and Stay Connected,” since the start of the COVID-19 pandemic in 2020. This philosophy has been fully embraced by regional group companies in all 10 countries and regions where BSAPIC operates and remains relevant today to drive performance while strongly supporting employee well-being by improving work-life balance.

• A cross-country task force

  BSAPIC created a cross-country task force in 2021 to develop regional guidelines on hybrid work and employee health and well-being to provide flexibility to BSAPIC’s employees and promote work-life balance. Following the establishment of the regional framework in 2022, hybrid work was implemented in 2022 in all the BSAPIC group companies across the 10 countries and regions with localization to adapt to the dynamic situations in different countries and sites. Complementary guidelines on Meeting Management and After Working Hours Communications were also rolled out in the group companies to further reinforce support for employee work-life balance and well-being.

Recognizing the value of the hybrid work model in promoting work-life balance and enhancing employee engagement, BSAPIC's group companies have chosen to maintain this work model. By offering employees the flexibility to work both remotely and on-site, BSAPIC reaffirms its commitment to fostering a supportive and inclusive workplace culture.

BSAPIC has been actively engaged in assessing and enhancing employee engagement and its organizational culture through Employee Engagement Surveys. BSAPIC has steadily seen positive progression over the last five years in Employee Engagement Survey.

The results indicate that BSAPIC teammates are highly engaged and enabled, shows high levels of pride and commitment towards the organization, and enjoy an enabling environment that makes good use of their skills and abilities. These surveys serve as invaluable tools for understanding employee perspectives and driving continuous improvement initiatives across the organization.

Americas region

BSAM is committed to cultivating a culture that promotes well-being to serve the diverse needs of its teams, helping them thrive. BSAM has learned to listen carefully, communicate often, form strategic partnerships, and continuously evolve to provide resources, strong benefit programs, and education that support employees’ emotional, physical, and financial well-being. BSAM is also committed to equity in its benefit programs while ensuring health efficacy and removal of barriers to healthcare and well-being support for employees and their families.

In 2022, BSAM launched a Well-being Task Force with a focus on receiving feedback from well-being champions throughout BSAM to further enhance the programs in the future. In 2023, the team also partnered with Bridgestone employee resource groups (ERGs) and vendors to provide webinars on topics such as women’s health and wellness, family goals and planning, suicide awareness for active members of the military and veterans and more. Furthermore, in 2023, BSAM continued to build upon its Well-being space by adding new benefit programs in support of the physical, emotional, and financial well-being of its employees. Each month, BSAM spotlighted a different well-being topic to provide employees with tools and resources to elevate their wellness. From proactive health engagement, managing stress, crisis and legal support, to planning for retirement or saving for a child’s college tuition, BSAM has an array of tools, resources, and partnerships to support employees’ needs. Effective January 1, 2024, BSAM expanded its initiatives in the U.S. as follows:

• Increased its paid Parental Leave time off for non-bargaining-unit hourly and salaried teammates

• Implemented a company-paid long-term disability benefit for non-bargaining-unit hourly and salaried teammates

Europe, Middle East and Africa region

BSEMEA continued to conduct monthly pulse surveys to ask questions and quantitatively measure key drivers of its culture. The pulse survey has four strategic points — well-being, engagement, culture and collaboration — which drives targeted actions for improving lower scoring items. BSEMEA has made the conscious choice not to use other KPIs, opting instead to gather raw, honest data through its pulse survey. In the two years since adopting this approach, BSEMEA has seen a positive impact on well-being, engagement and culture in different employee groups. As one of the concrete activities, based on the survey result, BSEMEA has been working on employee well-being for the last two years through “B-Olympic” and led to a structured action plan focused on four topics: psychological well-being, social well-being, physical well-being and workplace environment.
Also, in manufacturing field, a structural cultural change management program has been implemented over the last years, which is named “B-ME” (Bridgestone Manufacturing Excellence) which has resulted in well-trained and empowered employees, autonomous teams and significantly better operational results. The “B-ME” program continues to be impactful in the development and empowerment of manufacturing teammates. The expansion of this program will continue.

Initiatives for work style reform

In Japan, Bridgestone complies with the Labor Standards Act by working to reduce overtime and encouraging employees to take their annual holiday leave, and in 2019, it reviewed its policy on appropriate management of working hours. In order to achieve a flexible work style, the Company has implemented various systems such as flextime, discretionary labor system, telework, and hourly-based paid leave. Furthermore, as part of its work style reform, the Company is working towards enhancing face-to-face communication while effectively combining telework and in-office work, promoting the adoption of a "new way of working." The Company is reviewing work styles in each department to further enhance value creation. Through the "new way of working," the Company aims to achieve both enhancing productivity and creativity and creating value, and actively promotes the pursuit and realization of flexible, effective, and diverse work style.
In Japan in 2023, the rate of employees taking annual paid leave was 87.5 percent, with an average of 17.5 days.
(In 2022, the rate of employees taking annual paid leave: 87.0 percent, with an average of 17.4 days)
The Company also has a program requiring employees working more than a fixed number of hours to consult with industrial physicians to help maintain good health and prevent long working hour and health risks caused by overwork.
Total annual hours worked* 1,941 hours (FY 2023)　 (1,961 hours in FY 2022)
Annual overtime hours worked 216 hours (FY 2023)　 (242 hours in FY 2022)

* Total annual hours worked = (Annual regular hours worked) + (Annual overtime hours worked) - (Annual paid holidays taken) - (Other holidays taken)

Bridgestone also takes measures to prevent excessive working hours and achieve a flexible work style:

• The Labor Union, through the activities of the Working Hours Committee and other committees, shares with the Labor Department the existing issues and activities to improve the situation.

• Bridgestone sets targets for annual leave days taken and monitors results.

• Bridgestone holds seminars about work-life balance.

• Bridgestone implemented telework system in 2011.

• Normal working hours were reduced from 8 hours to 7.5 hours to reduce the total work time since April 2017.

• Bridgestone has introduced a system that allows employees to take annual paid leave for 5 days (40 hours) per year on an hourly basis in 2021.

• Bridgestone abolished the core time in the flextime system.

Employee benefits

The Group respects and encourages flexible work styles by offering benefits such as hybrid work schedules, childcare facilities in some locations, paid parental leave, and family care and/or volunteer leave above the legally required minimum in many locations including Japan, Americas, Europe, Russia, Middle East, India and Africa.
In Japan, the Company’s employees can make use of company housing, dormitories, rest homes, congratulations and condolences programs, programs for mutual support during natural disasters, childcare and nursing care support programs, asset formation support programs, housing loan programs, and various group insurance programs. Moreover, employees can also join the employee shareholding association to invest in both the Company’s and their own long-term futures. The Group is also working to systematically improve workplace welfare facilities, including sports facilities, cafeterias, shops, and break rooms, and some can be utilized after retirement.

Patent Compensation System

To boost its employees’ desire to develop new ideas, and to encourage new inventions that contribute to the advancement of its technological strategies, Bridgestone has set up the Patent Compensation System. Based on this system, employees are appropriately rewarded with the equivalent profit when the Company obtains the rights to receive a patent, etc., from the employee.

Regional initiatives

Japan

Since 2020, Bridgestone has rolled out its Human Resources Transformation (HRX) in stages. To date, the creation of HR system and mechanisms has been fundamental to these HRX initiatives. Moving forward, Bridgestone will seek to enhance its PDCA cycle. At the same time, it will accelerate various initiatives to support employee growth so that the growth of the Company and that of each and every employee goes hand in hand.
Specifically, once a year, employees have a C&D interview with their supervisors to clarify their thoughts on their career, work style, and growth. This interview provides an opportunity for employees to deepen their understanding of themselves and to concretize their career direction, the realization of value within the Company, and the actions they need to take for learning and challenges. Additionally, the Company provides the opportunity for employees to apply for a transfer or to take on a different challenge to encourage talent who are motivated to try a new job type or role.

• Open Posting System
  This system involves the Company clearly indicating the expectations and associated levels for positions that require challenging and diverse expertise. Employees with motivation can apply for these positions regardless of their current job title, and they are considered for assignment on an ongoing basis.

• Job-Matching System
  This system allows employees to register their unique skills and experiences, acquired both internally and externally. It matches the specific skills, expertise, and knowledge required by departments with the skills and experiences of employees and facilitates their assignment in positions where they can utilize their skills and experiences at the appropriate timing.

China, Asia-Pacific region

Performance Development System

BSAPIC recognizes the importance of nurturing a high-performing culture where every individual's potential is realized, contributing to the collective success. Central to this ethos is the robust Performance Development System (PDS), which serves as the cornerstone in driving excellence, growth, and alignment of individual aspirations with organizational goals.

During the PDS journey, managers and employees communicate and align individual goals with the organizational objectives. Through continuous dialogue and feedback loops, BSAPIC prioritizes constructive coaching and guidance, empowering employees to enhance their performance and develop them to their full potential.

Career Development and Discussion (CD&D)

BSAPIC 's CD&D process is a vital tool in the talent management strategy, fostering dialogue between employees and managers to align career aspirations with company goals. It empowers employees to create actionable Career Development Plans in consultation with their managers, driving personal career and organizational growth. The process is a continuous journey driven by the employee with the manager’s support. BSAPIC aspires to make its CD&D process available to all indirect employees. Since its inception in 2020, participation has surged from 500 to 2,400 employees in 2023. This process reflects the commitment to nurturing talent and fostering a culture of continuous development at BSAPIC.

Embodying the BSAPIC Talent Development Approach, managers collaborate with employees to design tailored development plans that leverage the 70-20-10 framework: 70% Experience, 20% Exposure, and 10% Education. Under the Experiential Learning, employees are provided with opportunities such as stretch assignments and cross-functional projects, enabling them to expand their skillsets and broaden their perspectives. Additionally, under the Coaching/Mentoring initiatives, including networking opportunities and executive coaching, foster a culture of continuous learning and mentorship.

At BSAPIC, the commitment to talent development is unwavering. Through PDS, CD&D and Talent Development Approach, BSAPIC strives to cultivate a culture of excellence, where each individual is empowered to thrive, driving sustainable growth and success for the organization as a whole.

Americas region

Performance management framework:

BSAM believes its employees are the key to its success as an enterprise. To support them in delivering outstanding results, BSAM provides employees with access to a number of development opportunities and ongoing performance feedback throughout the year. To meet the needs of its evolving business, BSAM’s performance management framework called AMP (Accelerating My Performance), is designed to provide transparency and trust around the assessment of employees and the most important business priorities. Additionally, it ensures employees receive the ongoing feedback and support they need to achieve their professional goals.

Through AMP, BSAM has created an environment where employees and managers continuously communicate and share feedback to ensure employees are delivering great results and progressing on reaching their career goals. While goals should be reviewed and modified as often as needed, managers and employees typically have quarterly AMP Check-Ins to review individual performance and development goals and to discuss any changing priorities. In 2023, to further support a culture of continuous conversations, people managers were required to attend a virtual workshop focused on incorporating feedback into AMP conversations. A total of 25 workshops were conducted for over 700 people managers. BSAM will continue to evolve AMP over the coming years to further enhance the culture of agility, continuous performance and development feedback. AMP represents a shift to a more forward-looking talent management process that aligns with BSAM’s evolution toward a more agile, sustainable enterprise. With AMP, BSAM aims to increase retention, development and recognition to keep up with employee expectations.

Career development with more cross-region talent mobility

BSAM continues to focus on helping leaders and employees have more robust and effective career discussions as well as more cross-region talent movement. BSAM also continues to expand its focus on succession planning, internal talent movement (talent brokerage), short-term assignments for development, and continuing to provide employees with access to a broad range of learning programs that suit both their personal aspirations and interests, and the critical capability needs of the business. In 2023, a Global Short-Term Assignment Policy in BSAM was developed that will further facilitate more cross-region talent movement.

Europe, Middle East and Africa region

BSEMEA focuses on having clear, shared goals most importantly for talent development, so all employees know what to do and what to focus on. Goals are shared via the Organization Key Results (OKR) system, which ensures key priorities in the company are aligned between teams and employees know how to collaborate. Upon the above structure, BSEMEA provides continuous feedback to empower managers and employees in their development and performance. Performance is measured based on concrete business results (the “what”) and on the way people behave and achieve their results (the “how”). Its “Go Beyond” recognition system awards points to managers and employees that demonstrate good behaviors. Managers at BSEMEA hold regular review meetings to follow up on execution and motivate and develop team members.

Bridgestone Europe, Middle East and Africa (BSEMEA) considers the work of building a strong culture and empowering people as a continuous journey. Also, BSEMEA has addressed employee career development and engagement enhancement from various aspects.

• Self-directed career development and personal growth

  BSEMEA has implemented the tools to support its employees in their development (example: 360-degree feedback, mentorship, targeted training paths with e-courses).

Ensuring pay equity

The Group’s talent strategy is centered on “creating a place where diverse talent can shine”. As the foundation for this, the Group ensures pay equity and designs its compensation programs to be competitive in each market based on regional and country-specific labor market trends and best practices.

In Japan, Bridgestone’s compensation program establishes salaries according to "role and responsibilities," "ability to demonstrate," and "achievement and growth," and the same compensation program is used for all employees regardless of their characteristics. Compensation levels are based on a survey conducted to ensure a competitive position in the market in talent acquisition and retention, and salary revisions are considered including their necessity each year based on social trends and other factors in Japan. In determining compensation for employees who are represented by labor unions, the Company holds labor management negotiations with the Bridgestone Labor Union every spring, and revises employee salaries in accordance with agreements reached. The Company holds labor management negotiations to maintain and ensure market competitiveness of its compensation levels, which are based on enhancing productivity and creativity, and to establish a compensation system that supports employees who are self-motivated to take on challenges and achieve growth. Regarding pay equity between male and female employees, there is a difference between male and female employees as a result of current talent portfolio in terms of job categories and the percentage of managerial positions, resulting in wage disparities. The Group is initiating efforts towards a more balanced talent portfolio, enhancing participation of female managers in key positions and strengthening recruitment of female employees, along with improving working environment at manufacturing sites as well.

BSAPIC’s compensation program aims to attract, motivate and retain the right talent with the right skills to be at the right position. Its major compensation programs, which include base pay, short- and long-term incentives, are designed to drive employee engagement and motivation, while fostering a performance-driven culture in alignment with both individual and company-wide objectives.

Regular annual market reviews ensure the compensation programs remain competitive and relevant within the industry landscape, providing the employees with compensation packages that reflect their true worth. Moreover, each program undergoes thorough scrutiny and approval by the Succession, Nomination, and Compensation Committee of BSAPIC's Board of Directors on an annual basis, demonstrating the commitment to transparency and fairness.

BSAPIC is dedicated to upholding pay equity for its employees, regardless of gender or any other differentiating factor. Factors such as experience, skills, market conditions, local legislation, and performance are carefully considered to ensure each employee is compensated fairly and in accordance with their contributions to the organization. Additionally, for employees represented by labor unions, BSAPIC adheres to all relevant conditions outlined in the labor agreement, further solidifying the commitment to equitable compensation practices.

BSAM’s compensation program is committed to attracting, motivating and retaining employees who enable the company to achieve its short and long term business goals. Its compensation practices are in compliance with federal, state and local legal requirements. BSAM ensures pay equity through the job offer process, its annual compensation practices, and periodic internal compensation reviews. External market data is leveraged to evaluate and develop competitive pay structures, which are updated annually. Additionally, short-term and long-term incentive programs are utilized to meet business needs and offer market competitive total direct compensation. These programs are reviewed and approved annually by the Succession, Nomination & Compensation Committee of the Board of Directors of BSAM. Pay practices are governed by collective bargaining agreements for those hourly employees represented by labor organizations.

In BSEMEA, compensation programs operate on the principle of market-based pay for performance. Its purpose is to attract, engage, and develop the right talent needed for Bridgestone’s future growth. The program is driven by base pay, short-term, and long-term variable pay, along with a comprehensive benefit program. To ensure adequacy, external market data is collected as a reference. Additionally, the company maintains collective bargaining agreements with labor unions to promote dialogue and equity and adheres to local regulations in all countries and regions where it operates. Regular checks by the compensation team ensure fairness in terms of process application and salary distribution. The results are periodically shared and discussed with the Succession, Nomination, and Compensation Committee of BSEMEA’s Board of Directors (SNCC).