Environmental Management
Fundamental Approach
Toyota's environmental philosophy and policies are rooted in the Guiding Principles at Toyota, established in 1992 and revised in 1997. Environmental initiatives were further formalized in 1992 with the Toyota Earth Charter, revised in 2000. This Charter is shared across 671 Toyota affiliates globally, operating under the Consolidated Environmental Management System (consolidated EMS). The Toyota Global Vision, announced in 2011, emphasizes "Respect for the Planet." Building on this, Toyota introduced the Toyota Environmental Challenge 2050 in FY2016 as its long-term environmental vision. In FY2017, the Sixth Toyota Environmental Action Plan (FY2017-2021) was launched. This framework guides Toyota in identifying environmental risks and opportunities impacting business operations and pursuing sustainable development in harmony with society towards 2050.
Note: Since FY2017, the scope of subsidiaries included in the EMS has expanded to include those based on effective control standards, following an amendment to the Japanese Companies Act.
Structure of Toyota's Environmental Management System
The environmental management structure is built upon several key documents and bodies:
- Guiding Principles at Toyota: Formulated in 1992 (revised in 1997).
- Toyota Earth Charter (Basic Environmental Policies): Formulated in 1992 (revised in 2000).
- Toyota Global Vision
- Public Environmental Policies and Guidelines
- Toyota Environmental Challenge 2050
- Toyota Environmental Action Plan (Five-year Plan): Specifically, the Sixth Plan (FY2017-2021).
- Annual Policies and Plans
The Toyota Earth Charter outlines the core principles:
I. Basic Policy
- Contribution toward a prosperous 21st century society: Aiming for growth in harmony with the environment and achieving zero emissions across all business activities.
- Pursuit of environmental technologies: Developing and establishing new technologies for environmental and economic coexistence.
- Voluntary actions: Developing improvement plans based on preventive measures and legal compliance, addressing environmental issues at global, national, and regional scales.
- Working in cooperation with society: Building cooperative relationships with governments, local municipalities, related companies, and industries for environmental preservation.
II. Action Guidelines
- Always be concerned about the environment: Challenging zero emissions at all stages (production, utilization, disposal), developing products with top environmental performance, pursuing waste-free production, implementing preventive measures, and promoting environmentally beneficial businesses.
- Business partners are partners in creating a better environment: Cooperating with associated companies.
- As a member of society: Actively participating in social actions, including creating a recycling-based society, supporting government environmental policies, and contributing to non-profit activities.
- Toward better understanding: Actively disclosing information and promoting environmental awareness.
III. Organization in Charge
Promotion is led by the Sustainability Meeting, comprising top management.
Promotion Structure
Toyota Motor Corporation (TMC) utilizes Sustainability Meetings for deliberations on key issues like corporate governance and risk management. Environmental risks and opportunities are also discussed by the ESG Committee. Three core environment-related committees – the Environmental Product Design Assessment Committee, the Production Environment Committee, and the Resource Recycling Committee – consider issues and responses, with all relevant divisions collaborating on company-wide initiatives. Environment Committees are established in six global regions (Europe, China, North America, Africa, Asia and Oceania, South America) to promote environmental initiatives and enhance global responses. In Japan, several conferences, including the All-Toyota Production Environment Conference, promote these initiatives.
Organizational Structure (as of July 2018)
The organizational structure includes the Shareholders' Meeting, Board of Directors, Sustainability Meeting (chaired by the Chief Risk Officer), ESG Committee, various specialized committees (Environmental Product Design Assessment, Production Environment, Resource Recycling), and Regional Environment Committees.
Scope of Companies Subject to Consolidated EMS
The consolidated EMS covers all consolidated subsidiaries on a financial accounting basis and non-consolidated subsidiaries deemed material for environmental management. This includes 246 production and sales companies directly controlled by TMC and 425 companies managed as consolidated subsidiaries, totaling 671 companies.
Details of Actions
- Jointly adopting the Toyota Earth Charter and drafting individual environmental policies.
- Setting quantitative goals in production and following up on them.
- Developing environmental management systems and conducting environmental communication in sales activities.
- Implementing top-level environmental responses based on actual conditions in each country and region.
Scope of Overseas Consolidated EMS (as of the End of March 2018)
Consolidated EMS are implemented across various regions:
- Europe region: 38 subsidiaries, European Environment Committee (since 2002).
- China region: 14 subsidiaries, China Environment Committee (since 2007).
- North America region: 18 subsidiaries, North America Environment Committee (since 2004).
- Africa region: 3 subsidiaries, South Africa Environment Committee (since 2008).
- Asia and Oceania regions: 25 subsidiaries, Asia Pacific Environment Committee (since 2007).
- South America region: 3 subsidiaries, South America Environment Committee (since 2006).
Main Companies Subject to Consolidated EMS in Japan (Alphabetical Order)
Companies are categorized into groups based on their relationship with TMC and business type:
| Group 1 (Production Companies) | Group 2 (Production Companies) | Group 3 (Production Companies) | Group 4 (Production Companies) | Group 5 (Production Companies) |
|---|---|---|---|---|
| Daihatsu Motor Co., Ltd. Toyota Motor Kyushu, Inc. Toyota Motor East Japan, Inc. Toyota Motor Hokkaido, Inc. Toyota Auto Body Co., Ltd. Hino Motors, Ltd. |
Aisan Industry Co., Ltd. Aisin AW Co., Ltd. Aisin AI Co., Ltd. Aisin Seiki Co., Ltd. Aisin Takaoka Co., Ltd. Aichi Steel Corporation JTEKT Corporation Denso Corporation Tokai Rika Co., Ltd. Toyoda Gosei Co., Ltd. Toyota Industries Corporation Toyota Tsusho Corporation Toyota Boshoku Corporation |
Cataler Corporation Kyoho Machine Works, Ltd. Central Motor Wheel Co., Ltd. Toyota Home Co., Ltd. Primearth EV Energy Co., Ltd. Yutaka Seimitsu Kogyo, Ltd. |
Admatechs Co., Ltd. Shintec Hozumi Co., Ltd. Toyota Energy Solutions Inc. Japan Chemical Industries Co., Ltd. |
FTS Co., Ltd. Kyowa Leather Cloth Co., Ltd. Koito Manufacturing Co., Ltd. Taiho Kogyo Co., Ltd. Chuoh Pack Industry Co., Ltd. Chuo Spring Co., Ltd. Tsuda Industries Co., Ltd. Toyoda Iron Works Co., Ltd. Trinity Industrial Corporation Fine Sinter Co., Ltd. Futaba Industrial Co., Ltd. |
Logistics Companies: Aichi Rikuun Co., Ltd., Tobishima Logistics Service, Inc., Toyota Transportation Co., Ltd., Toyofuji Shipping Co., Ltd. (Total: 50 companies)
Sales Companies: Fukuoka Toyopet Corporation, Toyota Corolla Aichi Co., Ltd. (Total: 48 companies, including one not subject to consolidated accounting)
Other Business: TACTI Corporation, Toyota Enterprises Inc., Toyota Central R&D Labs, Inc., Delphys Inc., Aero Asahi Corporation.
Conferences: All-Toyota Production Environment Conference Members, All-Toyota Production Environment Meeting Members, All-Toyota Logistics Environment Conference Members.
Promote Strengthening of Consolidated Environmental Management
Environmental Performance in Each Country and Region
Toyota formulates annual policies and conducts initiatives to ensure all business activities achieve top-level environmental performance. In FY2018, production and sales companies developed fiscal year plans and promoted measures for achievement.
Action Policies and Results of Major Affiliates Implementing Consolidated Environmental Management in FY2018
| Category | Action Policy | Goals | Activity Results |
|---|---|---|---|
| Overall | Promote environmental management through strengthened cooperation with each region. | Achieve goals in all areas. | Strengthened consolidated environmental management. Carried out environmental meetings in Japan and overseas. Conducted global ECO. Awards. Promoted activities under the Sixth Toyota Environmental Action Plan. |
| Production (83 companies) Japan (40 companies) Overseas (43 companies*) |
All companies to implement initiatives toward achieving FY2018 goals. All companies to strengthen activities to prevent recurrence of non-compliance and complaints. Maintain and improve environmental management systems. |
Achieve goals in Japan and other regions. Zero non-compliance and complaints. Renew ISO 14001 certification. |
All companies implemented systematic measures and nearly all goals were achieved. Six minor incidents of non-compliance (three in Japan, three overseas). ISO 14001 acquisition: 100% in Japan and overseas. |
| Sales (101 companies) Japan (50 companies) Overseas (51 companies*) |
Promote environmental initiatives by ensuring thorough implementation of Toyota dealer CSR checklist, reducing CO2 emissions by improving environmental management, and supporting third-party certification. Promote and strengthen environmental initiatives led by regional headquarters and distributors in each country (reducing CO2 emissions etc.). Promote and strengthen Dealer Environmental Risk Audit Program (DERAP)². |
Increase number of dealers acquiring EMS certification. Build environmental initiative promotion frameworks in each region. Percentage of dealers achieving goals: 100%. |
Dealers acquiring Eco-Action 21¹ certification: 5. Environmental activities framework under way according to plans in each region. Percentage of dealers achieving goals: 95%. |
¹ Eco-Action 21: A guideline by the Ministry of the Environment of Japan for companies to raise environmental awareness, set goals, and take action, integrating EMS, performance assessment, and reporting.
² DERAP: Toyota's program to reduce environmental risks at overseas dealer service shops.
* Includes the 12 production and sales companies.
Eco-factory Activities
Since FY2004, Toyota has been conducting eco-factory activities to integrate environmental measures into plant operations, aiming to become the No. 1 regional plant. These activities are applied to new plant construction, major renovations, and capacity expansions. In FY2018, eco-factory measures were implemented at six plants in Mexico, the United States, China, Indonesia, and Malaysia.
| Region | Mexico | U.S. | China | Indonesia | Malaysia | |
|---|---|---|---|---|---|---|
| Office, plant | TMMGT | MTMUS | GTMC Plant No. 3 | TFTM new plant | TMMIN new engine plant | ASSB Plant No. 2 |
| Planning stage | 2018 | 2019 | 2018 | 2018 | 2019 | 2019 |
| Audits of facility specifications | 2019 | 2019 | 2018 | 2018 | 2020 | 2020 |
| On-site audit (building) | 2019 | 2020 | 2018 | 2018 | 2020 | 2021 |
| On-site audit (equipment) | 2019 | 2020 | 2019 | 2019 | 2021 | 2021 |
| Compliance and risk assessment | 2020 | 2022 | 2020 | 2020 | 2022 | 2023 |
| Performance assessment | 2021 | 2023 | 2021 | 2021 | 2023 | 2024 |
* The years indicate activities implemented in FY2018 or planned for fiscal years thereafter.
Global ECO. Awards
Toyota presents Global ECO. Awards to production and logistics companies to encourage environmental kaizen activities at overseas affiliates, promoting the Toyota Environmental Challenge 2050 and sharing best improvement practices (yokoten). In FY2018, the Platinum Award for VOC reduction initiatives was given to the team from Toyota do Brasil (TDB). Special prizes were also awarded for uniqueness, effectiveness, and potential application at other sites.
¹ Yokoten: Sharing of improvement practices, know-how, and information within the All-Toyota Group.
² VOC (Volatile Organic Compounds): Chemicals that cause photochemical oxidation and smog.
Award Results
| Award Category | Recipients |
|---|---|
| Platinum Award | TDB (Brazil) |
| Gold Awards | TMMC (Canada) TMMT (Turkey) GTMC (China) TKM & TKAP (India) TASA (Argentina) |
| Silver Awards | TMMC (Canada) TMMMS (U.S.) TMMF (France) SFTM Chanchun (China) FTEC (China) SFTM Sichuan (China) TKM (India) TAP (The Philippines) TMT-BP (Thailand) TMT (Thailand) TSAM (South Africa) |
| * Special Awards | Innovation Award* (Environmental Management p. 56) Yokoten Award* (Challenge 5 p. 43) Zero Challenge Award* (Challenge 2 p. 27) Award for On-site Kaizen Activity (Challenge 5 p. 43) |
Image Description: Members of the Platinum Award winning team from TDB are shown with TMC Executive General Manager Toshio Niimi.
Legal Compliance Activities
Toyota aims for zero environmental risk in its production activities, prioritizing preventive measures to avoid non-compliance and complaints. The company actively manages non-compliance near-misses and shares information on recurrence prevention. Efforts are made to eliminate ozone-depleting substances (ODS). In FY2018, while no major environmental incidents occurred, a minor incident involved alkaline runoff from cement piling at Honsha Plant into a river, which was reported and rectified. Water discharge plans are being implemented company-wide. Toyota continues to outsource proper treatment of polychlorinated biphenyl (PCB) waste and is surveying high-concentration PCB ballast stabilizers for treatment by March 31, 2021. Groundwater pollution prevention measures are ongoing at six production plants, with continuous purification to meet standards. Trichloroethylene levels are reported to government and local councils.
Emissions Reductions that Contribute to Improvement of Urban Atmospheric Environments in Each Country and Region
Toyota is committed to developing and providing vehicles with outstanding environmental performance. The company utilizes atmospheric reaction analysis equipment to understand environmental conditions and conducts cooperative atmospheric environment research globally. Toyota also participates in atmospheric enhancement measures and joint research with institutions worldwide.
Reduce VOC Emissions in Production Activities
Volatile Organic Compounds (VOCs) contribute to photochemical smog. Toyota is actively reducing VOC emissions from vehicle painting processes by reducing paint and thinner usage and refurbishing painting facilities. In FY2018, VOC emissions per area painted in TMC body painting processes averaged 14.4 g/m² (a 1.0% decrease year-on-year). For TMC and its consolidated subsidiaries in Japan, this figure was 21.5 g/m² (a 0.2% increase). In TMC bumper painting processes, the average was 176 g/m² (an 8.8% decrease).
Trends in VOC Emissions Volume in Vehicle Body Painting Processes
| FY | 2014 | 2015 | 2016 | 2017 | 2018 |
|---|---|---|---|---|---|
| VOC emissions per area painted (g/m²) at TMC in Japan (Average for All Lines) | 18.8 | 17.2 | 15.8 | 14.6 | 14.4 |
| VOC emissions per area painted (g/m²) by Consolidated Subsidiaries in Japan | 24.1 | 22.6 | 21.8 | 21.5 | 21.5 |
(Vehicle assembly plants of TMC and consolidated subsidiaries and other companies in Japan, a total of eight companies)
Trends in VOC Emissions Volume in Bumper Painting Processes at TMC in Japan (Average for All Lines)
| FY | 2014 | 2015 | 2016 | 2017 | 2018 |
|---|---|---|---|---|---|
| VOC emissions per area painted (g/m²) | 310 | 282 | 253 | 193 | 176 |
Column: VOC Reduction Initiatives at TDB Plant (Brazil)
Toyota do Brasil (TDB) implemented daily measures to reduce VOC emissions in painting processes. Through 12 improvement measures, including optimizing spray sizes for door trim clear and intermediate-edge painting, and improving solvent recovery methods, TDB reduced VOC emissions per unit produced from 33.9 g/m² to 31.5 g/m² (a 6.9% reduction). These efforts earned the Platinum Award at the TMC Global ECO. Awards.
Image Description: A diagram illustrates the 'BEFORE' and 'AFTER' painting process, showing a change in spray pattern width from 600mm wide to 150mm narrow for door painting, and a middle pattern for door trim.
Promote Environmental Activities in Cooperation with Business Partners (Suppliers)
Toyota collaborates with suppliers on environmental initiatives through the TOYOTA Green Purchasing Guidelines, seminars, and other means. Following the Toyota Environmental Challenge 2050, guidelines were revised in January 2016 to include managing substances of concern, reducing greenhouse gases (GHG), assessing water risks, and encouraging resource recycling. Toyota requests tier 1 suppliers to extend these initiatives to their own suppliers, aiming for entire supply chain management.
¹ Green Purchasing Guidelines: Prioritizes purchase of parts, materials, equipment, and services with a low environmental footprint.
Recognition of Suppliers' Environmental Initiatives Started
Toyota established the Environmental Activity Awards in FY2018 to recognize suppliers contributing significantly to environmental initiatives across the vehicle lifecycle and supply chain. Awards were presented at the Global Suppliers Conference.
Assessing Risks and Opportunities Related to Climate Change and the Water Environment in Supply Chains
The CDP Supply Chain Program was introduced in FY2016 to support continuous improvement of supplier environmental initiatives and assess supply chain risks and opportunities.
Completed Revision of the Green Purchasing Guidelines Globally
Toyota completed the revision of its Green Purchasing Guidelines at overseas sites in FY2017, following the revision in Japan in January 2016.
Mutual Study About the Environment
An annual forum is held to discuss environmental issues with suppliers. In FY2018, a management roundtable conference included discussions on the Toyota Environmental Challenge 2050 and presentations by participating companies on their environmental initiatives.
Ensuring Compliance with REACH and Other Global Regulations on Chemical Substances
Toyota has established chemical substance management frameworks in cooperation with suppliers to comply with global regulations like REACH and the ELV Directive. In FY2018, suppliers in Japan conducted self-assessments, and further measures were taken and shared with overseas sites.
Promote Environmental Activities in Cooperation with Business Partners (Dealers and Distributors)
Toyota fosters strong relationships with dealers and distributors, recognizing them as critical partners in environmental initiatives due to their direct customer contact. Toyota implements a dealer CSR checklist in Japan and enhances environmental controls to reduce CO2 emissions. Globally, environmental management is promoted through regional headquarters and distributors, supported by DERAP implementation.
Promoting Environmental Initiatives at Domestic Dealers
The Toyota National Dealers' Advisory Council (TNDAC) promotes unified voluntary activities based on the Toyota Dealer CSR Guidelines. TNDAC encourages dealers to obtain third-party certification for their environmental management systems and develop environmentally conscious dealerships. In FY2018, the Toyota dealer CSR checklist was used for environmental assessments, leading to five additional dealers achieving Eco-Action 21 accreditation.
Raise Ratio of Dealers Achieving DERAP
The Dealer Environmental Risk Audit Program (DERAP) aims to reduce environmental risks at overseas dealer service shops. In FY2018, 92 distributors and 4,296 dealers from 89 countries participated, with 95% of participating dealers satisfying the program's five fundamental requirements. Toyota continues to support DERAP expansion and promote participation.
Further Strengthen Global Employee Education and Awareness Activities
Toyota designates June as "Toyota Environment Month" (since 1973, now "Toyota Global Environment Month") to raise employee awareness and action for the environment. The President's message is distributed globally, and event notifications are shared via monitors and intranets.
Year-round Awareness Activities for Employees
Starting in FY2018, Toyota has implemented year-round programs to enhance employee environmental consciousness and accelerate progress towards the Toyota Environmental Challenge 2050. These programs follow a "know, learn, act" cycle. The "know" phase uses digital signage and splash screens for information dissemination, while stickers encourage energy saving. The "learn" phase includes lectures, seminars, and reimbursement for environmental specialist certification tests.
Image Description: Stickers encouraging energy saving are placed in conference rooms and rest rooms. An image shows an environmental lecture.
Employee Engagement and Environmental Campaigns
In the "act" phase, the Environmental Campaign of Creative Suggestion System was conducted, receiving over 25,000 proposals. Inspirational posters depicting animal gazes were created to raise awareness of eco-driving. These posters were displayed across company sites. A pamphlet detailing eco-driving recommendations was distributed to approximately 80,000 employees.
Image Description: Three posters featuring animals and text related to environmental actions, and a pamphlet are shown. Images of a classroom lecture and a group discussion in a new employee training program are also included.
Enhance Active Disclosure of Environmental Information and Communication
Toyota proactively discloses environmental information through its annual Environmental Report, website, and events. The Environmental Report 2017 received an Excellent Prize in the 21st Environmental Communication Awards. The company also released web movie content, "econohito," featuring employees' environmental activities. Toyota continues to enhance its communications through various formats and programs.
URL: https://www.toyota-global.com/sustainability/environment/econohito/
Image Description: An awards ceremony for the 21st Environmental Communication Awards and an environmental event at MEGA WEB are depicted.
New Employee Training Program Raises Sense of Ownership
In FY2018, training programs for 756 new administrative and engineering employees explained Toyota's environmental undertakings, risks, and issues. The aim is to instill a high level of environmental awareness comparable to safety and quality. The training includes group discussions on environmental risks and countermeasures, fostering a sense of ownership among participants.
