Environmental Management

Basic Policy

Toyota's environmental philosophy and policies are based on the Guiding Principles at Toyota, which were 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 these 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 an 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 formal standards, those based on effective control standards have also been added due to an amendment in the Japanese Companies Act.

Toyota Earth Charter

The Toyota Earth Charter outlines a basic policy, action guidelines, and organization that serve as the framework for Toyota's environmental initiatives.

Promotion of Initiatives―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-assess issues and devise responses across various fields and industries to promote company-wide initiatives.

Structure of Toyota's Environmental Management System

Scope of Companies Subject to Consolidated EMS

Scope of Overseas Consolidated EMS (as of the End of March 2018)

The consolidated EMS scope covers all consolidated subsidiaries on a financial accounting basis and non-consolidated subsidiaries that place importance on 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 2018)

Toyota Environmental Action Plan

The Toyota Environmental Action Plan is designed to reflect 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 all 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, and the provision of products and services.

Promotion of Initiatives to Strengthen Consolidated Environmental Management

Environmental Performance in Each Country and Region

Toyota formulates annual policies and conducts initiatives based on set policies to ensure that all business activities achieve top-level environmental performance.

Action Policies and Results of Major Affiliates Implementing Consolidated Environmental Management in FY2018

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 the number one regional plant. Our eco-factory activities revolve around building and developing methods to ensure environmental measures are incorporated into each stage of manufacturing, from planning to design and operations. These measures are utilized for various 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

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

Global ECO. Awards

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

* Yokoten refers to the sharing of improvement practices, know-how, non-compliance issues, and other information within the All-Toyota Group.
Platinum Award winners from TDB members with then TMC Senior Managing Officer Hirofumi Muta

Major Initiatives during FY2018

Six finalist teams out of 19 selected from six regions around the world were invited to give 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 contribute to air pollution and soil contamination, raising concerns about the influence on the human body.

Legal Compliance Activities

Toyota aims to ensure that its production activities pose zero environmental risk to local communities. The foundation of our efforts rests on preventive measures to ensure complete compliance. We understand that neglecting preventive measures can lead to non-compliance situations. We consider such situations to be non-compliance near-misses, and we take stringent measures to root out the causes of these near-misses to 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 contributing to 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 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)

More information on the Sustainability Data Book 2018 [Environmental Management] Promotion of Initiatives to Strengthen Consolidated Environmental Management

Contributing to Improvement of Urban Atmospheric Environments in Each Country and Region by Reducing Emissions

Toyota aims to improve air quality by actively decreasing use of precious metals to achieve cleaner exhaust gas emissions. We collaborate with Group companies and partners, and conduct research and development on catalyst technologies that enhance air purification performance.

Reduction of VOC Emissions in Production Activities

Volatile Organic Compounds (VOCs*) are one of the leading contributors of photochemical oxidation, which leads to photochemical smog. Toyota strives 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 percent year-on-year). For TMC and its consolidated subsidiaries in Japan, VOC emissions volume was 21.5 g/m2 (up 0.2 percent 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 percent year-on-year).

*
VOC (Volatile Organic Compounds)
Used in painting, adhesives, and other processes and products, VOCs are volatile at room temperature under normal pressure. VOCs contribute to 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.

More information on the Sustainability Data Book 2018 [Environmental Management] Reduction of VOC Emissions in Production Activities

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

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

Toyota maintains 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 actively promote environmental management through environmental activities led by regional headquarters and distributors while continually implementing the Dealer Environmental Risk Audit Program (DERAP).

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 DERAP to reduce environmental risks at overseas dealer service shops.

More information on the Sustainability Data Book 2018 [Environmental Management] Promote Environmental Activities in Cooperation with Business Partners (Suppliers)

Further Strengthen Global Employee Education and Awareness Activities

In accordance with the national policies of Japan, Toyota designated June as "Toyota Environment Month" in 1973 and has been taking measures since then to raise employees' awareness and encourage participation in activities that have a positive impact on the environment. In 1991, we changed the name to "Toyota Global Environment Month," and the expansion of activities continues globally.

To increase awareness among all global employees of Toyota Global Environment Month, we distribute the President's message on the environment to global affiliates in their local languages and publicize events on monitors at various locations throughout company sites and on the intranet.

TOYOTA Green Purchasing Guidelines

In accordance with the Toyota Environmental Challenge 2050, we revised the Toyota Green Purchasing Guideline in January 2016.

Further green purchase in collaboration with suppliers

Major Revision Points

  1. Expanded environmental initiatives such as greenhouse gas emissions, water environment, resource recycling and biodiversity
  2. Enhanced "Environmental consciousness in the entire vehicle lifecycle" from raw material purchase to disposal and recycling
  3. Enhanced the environmental management of the entire supply chain

We will continue strengthening our collaboration with suppliers in a world-wide, and striving to realize a sustainable society with them.

Further green purchase in collaboration with suppliers

Major Initiatives during FY2018

Further Strengthen Global Employee Education and Awareness Activities
Further Strengthen Global Employee Education and Awareness Activities
  • Know
    Use of digital signage at various company sites to disseminate environmental information, educational splash screens when PCs are started up, and stickers to encourage energy conservation by setting air conditioning temperatures appropriately in conference rooms and by closing the lids of electronic bidets seats in rest rooms.
  • Learn
    Provision of environmental lectures by external instructors, internal environmental seminars by the general manager of the Environmental Affairs Division, and reimbursement of test fees for employees who pass the environmental specialist certification test (Eco Test).
  • Act
    Implementation of Creative Suggestion System Environmental Campaign, use of inspirational posters that depict animals and educational pamphlets, and regular updates to the pages on eco-driving on the internal website.
  • Raising awareness among peers
    In addition to conventional classroom work, new employee training included group discussions and presentations on environmental issues that the employees themselves identified as issues.
Further Strengthen Global Employee Education and Awareness Activities
Further Strengthen Global Employee Education and Awareness Activities

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 its website. We also actively disseminate and disclose environmental data through events and exhibits while engaging in environmental communications with a wide range of stakeholders.

Major Initiatives during FY2018

Enhance Active Disclosure of Environmental Information and Communication
Enhance Active Disclosure of Environmental Information and Communication
  • The Environmental Report 2017 won the Excellent Prize of the 21st Environmental Communication Awards.
  • We released on our website parts two and three of "econohito," a web movie featuring the environmental activities of employees working toward achieving the Toyota Environmental Challenge 2050.
  • We held events featuring easy-to-understand explanations of the Group's environment programs.
Enhance Active Disclosure of Environmental Information and Communication
Enhance Active Disclosure of Environmental Information and Communication