May. 13, 2005

Toyota Outlines Fourth Toyota Environmental Action Plan

― New Plan Aims to Maintain Balance Between Growth and Harmony with Society, While Contributing to
Sustainable Development ―

 

Tokyo ― TOYOTA MOTOR CORPORATION (TMC) announced today that it has established its Fourth Environmental Action Plan for initiatives that the company plans to implement from FY2006 through FY2010.

The five-year plan, directed toward the "arrival of a revitalized recycling-based society" between 2020 and 2030, sets forth the activities that Toyota needs to carry out between FY2006 and FY2010 in order to achieve the new corporate image stated in the Global Vision 2010―to become "a leader and driving force in global regeneration by implementing the most advanced environmental technologies". Reasserting the importance of environmental issues envisioned for the years between 2020 and 2030, the Fourth Environmental Action Plan focuses on four major issues: 1) energy/global warming, 2) recycling of resources, 3) management of substances of concern and 4) atmospheric quality. It calls for initiatives in the areas of development/design, procurement/production/logistics and sales/recycling.

The Fourth Environmental Action Plan is a blueprint to help Toyota contribute to the development of a sustainable society through corporate growth in harmony with society. The key ideas contained in the fourth plan include: understanding and reducing CO2 emissions levels on a global scale; reinforcing environmental management by business partners, including suppliers, dealers and overseas distributors; reducing SOC (substances of concern) based on global standards; and enhancing collaboration with society.

With this development, TMC intends to accelerate the Toyota Environmental Action Plan-based consolidated environmental management activities that it has been implementing with 564 consolidated Toyota Group companies around the world since 2001.

The first version of the Toyota Environmental Action Plan was created in February 1993. It was revised in April 1996 to become the Second Environmental Action Plan, and then again in April 2001 to become the Third Environmental Action Plan. This plan is currently in effect, and will run through the end of FY2005. All the goals it sets forth are expected to be met by the end of the fiscal year.

Attachment

The Fourth Toyota Environmental Action Plan

Action Items Specific Actions and Goals
Energy/
Global Warming
Management 1) Reduce CO2 emissions in Toyota's global operations
·  Create medium to long-term scenarios for reduction of CO2 emissions and ensure implementation
Development and Design    2) Promote the development of technologies to achieve the best fuel efficiency performance in each country and region
·  Japan: Steadily promote improvements in fuel efficiency that surpasses the 2010 Fuel Efficiency Standards
·  Europe: Steadily implement initiatives to realize JAMA's commitment to reduce CO2 emissions to 140g/km by 2009
·  North America: Steadily promote the development of technologies aiming to achieve the best fuel efficiency among competing vehicles of the same class
·  China: Achieve the new fuel efficiency standards in the short-term and realize leading fuel efficiency levels by vehicle class
·  Other regions: Actively introduce technologies that improve fuel efficiency
·  Develop and apply related technologies that will contribute to improvements in fuel efficiency
3) Promote the development of clean-energy vehicles, encourage their effective introduction and ensure wider market acceptance
·  Further improve the performance of hybrid systems, increase the number of hybrid vehicle series and introduce them in more markets
·  Develop and quickly introduce next-generation fuel cell vehicles to contribute to realizing a hydrogen-based society in the future
4) Develop technologies to respond to the diversification of energy and fuel sources
·  Assess and develop corresponding technologies for various types of bio fuels and synthetic fuels that will contribute to reductions in CO2 emissions and energy security
5) Promote initiatives to improve traffic flows using a variety of networking technologies
·  Promote initiatives to improve traffic flows in cooperation with relevant organizations, aiming to introduce to society traffic systems that use ITS from the three-fold perspective of "cars," "traffic infrastructure" and "people."
Production and Logistics 6) Reduce CO2 emissions in the production and logistics activities of each country and region Production
·  Dramatically increase productivity through measures such as the development of innovative production technologies, thus reducing CO2 emissions (expand activities to include offices and other sites)
·  Develop technologies that will enable the use of "new energy" and study their introduction

Logistics
·  Promote CO2 emissions reduction activities through improvements in transportation efficiency

FY2010 Goals
  Region Item Goal
Production   Worldwide Emissions volume/ sales unit 20% reduction from FY2001
  TMC Emissions volume/ sales unit 35% reduction from FY1990
Emissions volume 20% reduction from FY1990
Logistics Japan* Emissions volume 10% reduction from FY1990
Overseas Grasp overseas CO2 emissions volumes and expand reduction activities
Determine actual CO2 emissions volumes by FY2007 and make a shift to goal management
*Scope: Transport of production parts, vehicles and service parts
Recycling of Resources Production and Logistics 7) Promote the effective use of resources to further contribute to the realization of a recycling-based society Production
·  Reduce the volume of materials discarded by taking action at the source, such as improving yields and other measures (reduce the volume of valuable materials such as scrap metal and waste and maintain zero landfill waste generation)
Logistics
·  Reduce packaging and wrapping material usage by keeping packaging to a minimum and increasing the use of returnable containers

FY2010 Goals
  Region Target Item Goal
Production   Japan Materials discarded Materials discarded/
sales unit
3% reduction from FY2003
  TMC Materials discarded Materials discarded/
sales unit
20% reduction from FY2000
Overseas Waste Promote reduction activities that are at leading levels in each country
Logistics Japan* Packaging material Usage volume 45% reduction from FY1995
Overseas Grasp usage volumes of packaging material and expand reduction activities
*Scope: Transport of production parts and service parts
8) Reduce water consumption
·  Set separate goals for each country and region and continue implementing measures to reduce water consumption
Vehicle Recycling 9) Steadily implement recycling systems in Japan and Europe
·  Steadily implement initiatives to increase vehicle recovery rates in Japan and Europe to reach 95% by 2015
Recovery rates:
Japan: equivalent to 92% in FY2010
Europe: 85% in 2006
·  Further strengthen initiatives to enhance Automobile Shredder Residue (ASR) recycling/recovery technology
·  Develop and promote the use of dismantling methods and tools (disclose dismantling information)
·  Expand utilization of used parts (Japan: Increase sales ten-fold by 2010 compared to 2002)
·  Develop recycling technologies for newly developed parts (FC and HV parts, etc.) and create collection networks
10) Further promote and expand the use of designs based on the designs for recycling (DfR) concept
·  Promote and expand the development of vehicles that are easy to dismantle and recycle
·  Expand the usage of renewable resources such as Toyota Eco-Plastic, and of recycled materials (establish technologies that enable use of 15% of resin parts by 2010)
·  Develop and increase use of designs based on the DfR concept for newly developed parts (FC and HV parts, etc.)
Substances of Concern Development and Design 11) Promote management and further reductions in the use of substances of concern (SOC)
·  Eliminate use of four SOCs (lead, mercury, cadmium and hexavalent chromium) globally
·  Introduce vehicles in Japan and Europe that use zero amounts of the four banned substances starting in 2006 (complete elimination, with some exemptions, by 2007)
·  Eliminate worldwide usage of the four banned substances in accordance with Toyota's global standards in the short term
·  Increase the number of SOC subject to management
·  Reduce cabin VOC levels in all new vehicles launched globally by 2010
·  Develop air conditioners that use coolants with a small global warming potential
Production and Logistics 12) Reduce the discharge of substances subject to the PRTR law*

*Law Concerning Reporting, etc. of Releases to the Environment of Specific Chemical Substances and Promoting Improvements in Their Management
·  Reduce the discharge of substances subject to the PRTR law focusing on vehicle painting processes

FY2010 Goals
  Region Item Goal
Production Japan Discharge volume 55% reduction from FY1998
TMC Discharge volume 70% reduction from FY1998
Overseas Set goals that are stricter than each country's regulations and implement reduction activities
Atmospheric Quality Development and Design 13) Reduce emissions to improve air quality in urban areas in all countries and regions
·  Promote the development of ultra-low emissions technologies and introduce the best-performing low-emissions vehicles according to conditions in each country
   -  Japan: Expand phased introduction of SU-LEVs
 -  U.S.: Respond appropriately to Tier2 and LEV2 regulations
 -  China: Introduce Euro 4 level vehicles in the short term
 -  Other countries: Introduce Euro 3 and 4 level vehicles in the short term
·  Further promote the development and market penetration of high-efficiency, clean diesel vehicles
   -  Japan: Further market penetration focusing on commercial vehicles
 -  Europe: Develop and quickly introduce low-emissions vehicles with even cleaner emissions
Production and Logistics 14) Implement initiatives to reduce VOC emissions
·  Implement measures to further reduce the volume of purge solvents used in vehicle painting processes and expand the use of water-borne paints
FY2010 Goals
  Process Region Item Goal
Production Body painting processes   Japan Emissions/unit of painted area 35g/m2 or less
(average of all lines)
  TMC Emissions/unit of painted area 25g/m2 or less
(average of all lines)
Overseas Conduct activities to reduce VOC emissions at the highest levels in each country
Other painting processes Japan/Overseas Implement VOC emissions reduction activities
Environmental Management Management 15) Strengthen consolidated environmental management Production affiliates

·  Implement global Eco-Factory activities that ensure the incorporation of environmental measures from the planning stages (zero instances of non-compliance and complaints, minimizing environmental risks, and achieving leading levels of environmental performance in each country and region)

Non-production affiliates

·  Manage and enhance affiliates' environmental performance (CO2 emissions, etc.) on a global scale
16) Further promote environmental management to business partners Suppliers

·  Further enhancement of environmental activities in cooperation with suppliers
   -  Management of SOCs contained in parts, raw materials, production facilities and other items supplied to Toyota
 -  Request voluntary initiatives by suppliers to improve environmental performance

Japanese dealers

·  Review Toyota Japanese Dealer Environmental Guidelines and support dealer responses to medium-term environmental issues
   -  In addition to proper disposal of waste and treatment of wastewater, undertake active steps to address a broad range of issues such as reducing CO2 emissions
 -  Promote the establishment of initiatives based on the Automobile Recycling Law response guidelines

·  Support dealer initiatives to reinforce and enhance their environmental management functions
   -  Set key indicators for Toyota dealers and develop monitoring structures

Overseas Distributors

·  Support initiatives to assess, manage and reduce emissions of CO2 and other substances generated by overseas distributor operations
·  Support initiatives to ensure appropriate disposal of waste, wastewater and air conditioner coolants at overseas dealers
17) Enhance environmental education
·  In addition to raising employee environmental awareness, continue conducting environmental training that contributes to improvement in actual work activities
·  Enhance global environmental education and include consolidated affiliates
18) Promote new businesses that contribute to environmental improvement
·  Expand existing and establish new biotechnology and reforestation businesses
·  Promote development and launch of stationary fuel cells
·  Expand businesses that reduce environmental risk, such as management of SOCs, etc.
19) Steadily reduce environmental impact over the entire lifecycle of the product through full-scale implementation and establishment of Eco-Vehicle Assessment System (Eco-VAS)
·  Implement on models that undergo redesigns and new models in Japan and expand to all vehicles, including those produced in Europe and America.
Cooperation with Society 20) Contribute to the development of a recycling-based society
·  Promote basic environmental research, such as development of technology to reduce CO2 emissions, and make proposals
·  Implement philanthropic programs that contribute to development of environmental technologies, environmental education, and the preservation of biodiversity.
   -  Continue implementing and further enhance the content of activities such as the Toyota Environmental Activities Grant Program (in commemoration of winning the Global 500 award) and the establishment of the TOYOTA Shirakawa-Go Eco-Institute
21) Improve disclosures of environmental information and two-way communications
·  Enhance disclosures of information concerning environmental product technologies in each country and region
·  Provide information on environmentally considerate driving (eco-drive) to consumers
·  Further enhance the content of environmental reports in each country and region
·  Further enhance communications with local communities at Toyota operations worldwide
·  Improve dialogues with and engage in communication with a broader range of stakeholders, and increase mutual understanding
22) Actively contribute to and propose environmental policies based on sustainable development
·  Participate in debates concerning the creation of governmental environmental policies and frameworks both in Japan and overseas
·  Promote environmental measures proposed by the World Business Council for Sustainable Development (WBCSD), Nippon Keidanren, Japan Automobile Manufacturers Association and industry organizations