Section 2. Response to Environmental and Safety Issues

Item 2. Greenhouse Gas Reduction and Measures on Substances of Concern

CO2 reduction in Production Group

To reduce CO2 reduction in production activity, the second phase of the Toyota Environmental Action Plan from fiscal 1996 (ended March 1997) adopted a goal of stabilizing total emissions volume and emissions volume per unit of net revenue at fiscal 1990 (ended June 1991) levels by the end of fiscal 2000 (ended March 2001). In the following third phase from fiscal 2001 (ended March 2002), the goal was to achieve by fiscal 2005 (ended March 2006) a five percent reduction in total emissions volume compared to fiscal 1990 (ended June 1991).

To adapt to these goals, the Production Engineering Group engaged in activities such as promoting the introduction of cogeneration systems using gas turbines, which have high energy conservation performance, and switching fuel to natural gas, which has a relatively low environmental impact. As a result, the goal for fiscal 2005 (ended March 2006) was exceeded by a large margin with a 19 percent CO2 emissions reduction compared to fiscal 1990 (ended June 1991).

In the fourth phase from fiscal 2006 (ended March 2007), in addition to Toyota's unconsolidated goals for fiscal 2010 (ended March 2011), a new global target was formulated of achieving a 20 percent reduction in emissions volume per unit of net revenue compared to fiscal 2001 (ended March 2002). Here also, a reduction that exceeded the targeted level was achieved. In the fifth phase from fiscal 2011 (ended March 2012), emissions volume per vehicle unit produced was established as the new metric and targets were set for fiscal 2012 (ended March 2013): a global 29 percent reduction, and an unconsolidated Toyota reduction of 37 percent compared to fiscal 2001 (ended March 2002).

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