Environmental Management

Fundamental Approach

Toyota’s environmental philosophy and policies are based on the Guiding Principles at Toyota established in 1992 (revised in 1997). Policies for environmental initiatives were formulated in 1992 as the Toyota Earth Charter (revised in 2000). This Charter is shared among 671 Toyota affiliates* subject to the Consolidated Environmental Management System (consolidated EMS) around the world.
The Toyota Global Vision announced in 2011 emphasizes the importance of “Respect for the Planet.” Based on its philosophy and policies, Toyota formulated the Toyota Environmental Challenge 2050 in FY2016 as its first long-term vision for environmental initiatives. In FY2017, Toyota launched the Sixth Toyota Environmental Action Plan (FY2017–2021). Under this structure of environmental management system, Toyota is identifying environmental risks and opportunities that can affect business operations and is working for sustainable development in harmony with society toward the year 2050.

  • Since FY2017, in addition to the subsidiaries based on the formal standards, those based on the effective control standards have also been added due to the amendment of the Japanese Companies Act

Toyota Earth Charter

The Toyota Earth Charter outlines a basic policy, action guidelines, and organization which are the framework for Toyota’s environmental initiatives.

Promotion Structure and Framework

The Corporate Planning Meeting, and the three core environment-related committees: the Environmental Product Design Assessment Committee, the Production Environment Committee, and the Resource Recycling Committee, consider their issues and responses in various fields and solutions for addressing these issues to promote company-wide initiatives.

Scope of Companies Subject to Consolidated EMS

The consolidated EMS scope covers all consolidated subsidiaries on the financial accounting basis and non-consolidated subsidiaries considered material from the viewpoint of environmental management. The 671 consolidated EMS companies consist of 246 production and sales companies under the direct control of TMC, as well as 425 companies managed by way of consolidated subsidiaries.

Scope of Overseas Consolidated EMS(as of the end of March 2017)

Toyota Environmental Action Plan

The Toyota Environmental Action Plan defines the Toyota Earth Charter in specific corporate activities to ensure steady progress of our goals. Goals in the action plan are reviewed once every five years. The Sixth Toyota Environmental Action Plan clearly defines the initiatives to be implemented between FY2017 and 2021 in order to meet the Six Challenges of the Toyota Environmental Challenge 2050.
We will contribute to the sustainable development of our society and the Earth in harmony with the global environment through monozukuri (manufacturing), car-manufacturing, providing products and services.

Promote Strengthening of Consolidated Environmental Management

Environmental Performance in Each Country and Region

Toyota formulates annual policies and conducts initiatives based on the policies to ensure that all business activities achieve top levels of environmental performance.

Action Policies and Results of Major Affiliates Implementing Consolidated Environmental Management in FY2016

Eco-factory Activities

Toyota has been conducting eco-factory activities since FY2004 with the aims of steadily incorporating environmental measures into plant activities and becoming No. 1 regional plant. Our eco-factory activities are to build and develop a mechanism which surely incorporates environmental measures into each stage from planning to design and operations. These measures will be utilized for projects such as construction of new plants, major renovations of existing plants, and capacity expansions.

Major Initiatives during FY2018

  • Implemented at six plants in Mexico, the United States, China, Indonesia, and Malaysia

Global ECO. Awards

Toyota presents its own Global ECO. Awards for production and logistics companies to encourage environmental kaizen activities at overseas affiliates for carrying out the Toyota Environmental Challenge 2050 and promote yokoten* of the best improvement practices.

  • Yokoten refers to sharing of improvement practices, know-how, non-compliance and other information within the All-Toyota Group

Major Initiatives during FY2018

  • Six finalist teams out of 19 selected from six regions around the world were invited to give their presentations in Japan. The team from Toyota do Brasil(TDB) won the Platinum Award for its presentation on VOC* emissions reduction initiatives.
  • VOC (Volatile Organic Compounds): Used in painting, adhesives, and other products, VOCs are volatile at room temperature under normal pressure. VOCs cause air pollution and soil contamination, raising concerns about the influence on the human body.

Platinum Award winners from TDB members with then TMC Senior Managing Officer Hirofumi Muta

Legal Compliance Activities

Toyota aims to ensure that its production activities pose zero environmental risk to local communities. The foundation of our efforts is preventive measures to avoid non-compliance issues and complaints. Neglecting preventive measures can lead to situations where non-compliance may occur. We consider these situations to be non-compliance near-misses, and we take stringent measures to root out the causes of these near-misses and prevent reoccurrence. For incidents posing significant risk, Toyota disseminates information on reoccurrence prevention measures through environmental affairs meetings at all Group companies. Additionally, we are taking measures to completely eliminate the use of ozone-depleting substances (ODS).
In FY2018, Toyota was not involved in any major environmental incidents causing air or water pollution, nor was the Group subject to fines or penalties. We continued to outsource proper treatment of polychlorinated biphenyl (PCB). At six of our production plants, we completed groundwater pollution prevention measures in 1997. The levels of trichloroethylene at production plants are reported to the government and to local councils
in the surrounding communities.

Details on environment-related non-compliance incidents and complaints at TMC and trichloroethylene levels at TMC can be found here (Environmental Data P and Q)

Emissions Reductions That Contribute to Improvement of Urban Atmospheric Environments in Each Country and Region

Toyota aims to improve air quality through the use of fewer precious metals to achieve cleaner exhaust gas emissions. We are collaborating with Group companies and partners and actively conducting research and development on catalyst technologies which enhance air purification performance.

Reduce VOC Emissions in Production Activities

Volatile Organic Compounds (VOCs*) are one of the causes of photochemical oxidation, the cause of photochemical smog. Toyota has been striving to reduce VOCs emitted in vehicle painting processes.
In FY2018 , the volume of VOC emissions per area painted in TMC body painting processes (average for all lines) was 14.4 g/m2 (down 8% year on year). For TMC and its consolidated subsidiaries in Japan, VOC emissions volume was 21.5 g/m2 (up 0.2% year on year). Meanwhile, the volume of VOC emissions per area painted in TMC bumper painting processes (average for all lines) was 176 g/m2 (down 8.8% year on year).

  • VOC (Volatile Organic Compounds): Used in painting, adhesives, and other products, VOCs are volatile at room temperature under normal pressure. VOCs cause air pollution and soil contamination, raising concerns about the influence on the human body.

Major Initiatives during FY2018

  • TDB, an affiliate in Brazil, reduced VOC emissions at its plant through steady efforts to improve painting processes

Trends in VOC Emissions Volume in Vehicle Body Painting Processes at TMC in Japan

Promote Environmental Activities in Cooperation with Business Partners (Suppliers)

Toyota purchases a wide range of materials, parts, and equipment from many different suppliers. We have collaborated with suppliers on implementing environmental initiatives through TOYOTA Green Purchasing Guidelines*, seminars, and other means. Ensuring compliance with each country’s laws and regulations and improving the management of substances of concern are fundamental requirements for suppliers. Additionally, after releasing the Toyota Environmental Challenge 2050, we revised the “Toyota Green Purchasing Guidelines” in January 2016, asking suppliers to promote a broad range of environmental initiatives to reduce greenhouse gases (GHG) and protect ecosystems in support of the Challenge. We have been working even closer with suppliers to that end. We request that our tier 1 suppliers to roll out environmental initiatives to their suppliers, and we seek to realize entire supply chain management in the pursuit of a sustainable society.

  • Green Purchasing Guidelines: Prioritizing the purchase of parts, materials, equipment, and services with a low environmental footprint when manufacturing products

TOYOTA Green Purchasing Guidelines

Major Initiatives during FY2018

  • Completed Revision of the Green Purchasing Guidelines Globally and requested suppliers to promote initiatives
  • Held a management roundtable conference on the environment for key suppliers.
  • Grasped environment-related risks and opportunities along the supply chain* through the CDP Supply Chain Program
  • Implemented activities to be incorporated into future measures based on the results of self-assessments by suppliers in Japan to ensure they are fully addressing global regulations chemical substances, including REACH*
  • Supply chain: The entire flow of business activities related to a product, from procurement of materials for manufacturing, to production control, logistics, and sales
  • Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) regulation: A European Union regulation for managing chemical substances to protect human health and the environment

Promote Environmental Activities in Cooperation with Business Partners (Dealers and Distributors)

Toyota has strong bonds of trust with its dealers and distributors built on shared values for products and services, supporting a long history of collaborative initiatives in environmental activities. In Japan, we are fully implementing a CSR checklist among Toyota dealers and taking measures to enhance environmental controls to reduce CO2 emissions. In overseas regions, we strongly promote environmental management through environmental activities led by regional headquarters and distributors along with continual DERAP implementation.

Major Initiatives during FY2018

  • The Toyota National Dealers’ Advisory Council (TNDAC) promoted unified efforts among all dealers in Japan to implement voluntary activities based on the Toyota Dealer CSR Guidelines
  • Recommended dealers acquire third-party environment assessment certification
  • Continued to implement the Dealer Environmental Risk Audit Program (DERAP) to reduce environmental risks at overseas dealer service shops

Further Strengthen Global Employee Education and Awareness Activities

In accordance with the national policies of Japan, Toyota designated June as its “Toyota Environment Month” in 1973 and has been taking measures since then to raise employees’ awareness and actions for the environment. In 1991, we changed the name to “Toyota Global Environment Month,” and we are expanding activities globally.
We ensure that all global employees are aware of Toyota Global Environment Month by distributing the President’s message on the environment through global affiliates in their local languages and making event-related notifications on monitors at various locations throughout company sites and on the intranet.

Major Initiatives during FY2018

  • “Know”: Digital signage is installed at various company sites to disseminate environmental information, educational splash screens are displayed when PCs are started up, and stickers are used to encourage energy saving by setting air conditioning temperatures appropriately in conference rooms and by closing the lids of electronic bidets seats in rest rooms
  • “Learn”: Environmental lectures presented by outside instructors are held, internal environmental seminars are conducted by the general manager of the Environmental Affairs Division, and test fees for employees who pass the environmental specialist certification test (Eco Test) are reimbursed
  • “Act”: A Creative Suggestion System Environmental Campaign is being conducted, inspirational posters that depict the gazes of animals and educational pamphlets were created, and the pages on eco-driving on the internal website are updated.
  • In additional conventional classroom work, new employee training included group discussions and presentations on environmental issues that the employees themselves identified as problems

Enhance Active Disclosure of Environmental Information and Communication

To enhance the disclosure of environmental data, Toyota effectively reports on the status of progress under the Toyota Environmental Challenge 2050 and the sixth Toyota Environmental Action Plan in its annual Environmental Report and on websites. We also actively disseminate and disclose environmental data through events and exhibits and engage in environmental communications with a wide range of stakeholders.

Major Initiatives during FY2018

  • The Environmental Report 2017 won the Excellent Prize of the 21st Environmental Communication Awards
  • TMC released on its website seasons two and three of “econohito,” a web movie featuring the environmental activities of employees working toward achieving the Toyota Environmental Challenge 2050
  • Toyota held events with easy-to-understand introductions to the Group’s environment programs