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 661 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 FY2015 as its first long-term vision for environmental initiatives. In FY2016, Toyota started the Sixth Toyota Environmental Action Plan (FY2016-2020), initiating new programs for sustainable development in harmony with society toward the year 2050.

  • Since FY2016, 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 661 consolidated EMS companies consist of 242 production and sales companies under the direct control of TMC, as well as 419 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 FY2016 and 2020 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

We are promoting eco-factory activities with the aim of surely incorporating environmental measures into plant activities, and becoming No. 1 regional plant through projects, including new plant construction and production capacity expansion. Our eco-factory activities confirm environmental consciousness through genchi genbutsu (on site, hands on) at each stage of planning, design, trials and operations and works to rectify issues to ensure our environmental measures are performed.

Major Initiatives during FY2016

  • Carried out eco-factory measures at eight plants located in Mexico, China, Brazil, Indonesia, and Malaysia

Global ECO. Awards

TMC instituted its own annual awards program to recognize superior planning teams and affiliates around the world for their environmental practices. The goal is to encourage kaizen activities at overseas affiliates and promote yokoten (sharing) of the best improvement practices throughout the Toyota Group. In FY2015, five finalists were selected out of 13 teams from six regions around the world and invited to give their presentations in Japan. The team from Toyota Motor Manufacturing Indonesia (TMMIN) won the Platinum Award for their presentation on “The Reduction of Waste through the Separation of Casting Sand and Dust.”

Major Initiatives during FY2016

  • Of the selected 19 teams from six regions around the world, Toyota do Brasil (TDB) won the Platinum Award for its continuous CO2 reduction initiatives

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, we implement yokoten (sharing) of 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 FY2016, Toyota was not involved in any major environmental incidents causing air or water pollution, nor was the Group subject to fines or penalties.
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.

Major Initiatives during FY2016

  • Regarding reporting and storage of Poly Chlorinated Biphenyl (PCB) waste, proper treatment of PCB waste has been outsourced to subcontractors since FY2005 and thus far 5,243 containers of waste have been disposed

TMC’s Environment-related Non-compliance Incidents and Complaints and Trichloroethylene Level

Reduce Vehicle Exhaust Emissions to Improve Urban Air Quality in Each Country and Region

Toyota aims to improve air quality through the use 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.

Major Initiatives during FY2016

  • Commercialized a catalyst for exhaust gas purification using the world’s first FLAD® substrate which is integrally molded with cells that have different cross-sectional areas at the inner portion as compared with the outer portion

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 FY2016, the volume of VOC emissions per area painted in TMC body painting processes (average for all lines) was 14.6 g/m2 (down 8% year on year). For TMC and its consolidated subsidiaries in Japan, VOC emissions volume was 21.5 g/m2 (down 1.5 % year on year). Meanwhile, the volume of VOC emissions per area painted in TMC bumper painting processes (average for all lines) was 193 g/m2 (down 24% 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.

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 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.

  • 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 FY2016

  • Completed Revision of the Green Purchasing Guidelines Globally
  • Held a CSR Study Meeting for suppliers featuring the Toyota Environmental Challenge 2050 as its main theme.
  • 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

Green Purchasing Guidelines

From left, Green Purchasing Guidelines of TME (Europe) and TDEM (Thailand)

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 FY2016

  • 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
  • Kurumá Veiculos team won the grand prize at the Eco Dealer Awards, jointly sponsored by Toyota do Brasil (TDB) and ABRADIT, the association of Toyota dealers in Brazil

TDB executives join award candidates

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,” expanding our activities globally.
During the period, we ensure that all global employees are aware of Toyota Global Environment Month. This includes displaying a common poster worldwide, making event-related notifications on monitors at various locations throughout company sites and on the intranet, and distributing the President’s message on the environment.

Major Initiatives during FY2016

  • “Ecoba,” our in-house environment character, made appearances at the main gate of our plants during commute times and in cafeterias at lunch time to further raise awareness during Toyota Global Environment Month
  • Invited astronaut Ms. Naoko Yamazaki to speak at an environmental lecture
  • Conducted internal environmental seminars by the general manager from the Environmental Affairs Division
  • Subsidized test fees for employees who have passed the certification test for environmental specialists (Eco Test) sponsored by the Tokyo Chamber of Commerce and Industry

Astronaut Ms. Naoko Yamazaki delivers a lecture

Astronaut Ms. Naoko Yamazaki delivers a lecture

“Ecoba” makes appearance at a site

“Ecoba” makes appearance at a site

Enhance Active Disclosure of Environmental Information and Communication

To further expand our environmental disclosure, we utilize our annual environmental report and website to effectively release the results of progress along the Toyota Environmental Challenge 2050 and the Sixth Toyota Environmental Action Plan. We also actively disclose environmental information and conduct environmental communication with a wide range of stakeholders through various events.

Major Initiatives during FY2016

  • Our Environmental Report 2016 won a Excellence Prize for Global Warming Countermeasure Reporting Category of the 20th Environmental Communication Awards
  • TMC uploaded “econohito” to its website. These videos feature environmental initiatives carried out by employees in support of the Toyota Environmental Challenge 2050.

Awards ceremony for Environmental Communication Awards

Awards ceremony for Environmental Communication Awards