Environmental Initiatives

Vision for Environmental Activities
Structure to Implement
Environmental Management
Environmental Impact Flow andEnvironmental Accounting
Sixth Environmental Action Plan
Establishing a Low-Carbon Emission Society

Environmental
Initiatives

P59
P60
P61
P62–63
P64–65

Establishing a Recycling-Based Society
Reducing Environmental Risk and Establishinga Society in Harmony with Nature
Environmental Management
Third Party Assurance ofEnvironmental Performance Data

P66–67
P68–69
P70–73
P74

Vision for Environmental Activities
We have defined our aspirations in 2050 and been promoting the Sixth Environmental Action Plan since fiscal 2017.

Aiming at realizing a prosperous life inharmony with the natural environment

Low-carbon
emission society

Recycling-basedsociety

Environmental Management

Aspirations in 2050 and the Sixth
Environmental Action Plan
Following the 2015 adoption of the Paris Agreement, aninternational framework for action against climate change,
establishment of a low-carbon emission society has become
a global common goal. For Toyota Industries as well, theneed to take further proactive measures is growing as global
environmental issues continue to become of greater concern,with more people becoming increasingly conscious about theenvironment.
Under the circumstances, we have defined our aspirationsin 2050. The Global Environmental Commitment, which
represents our basic approach to environmental activities,
specifies the four action themes, namely, 1) establishing a
low-carbon emission society; 2) establishing a recyclingbased society; 3) reducing environmental risk and establishinga society in harmony with nature; and 4) promoting
environmental management.

As a milestone toward achieving our aspirations in 2050,
we have formulated the Sixth Environmental Action Plan, a fiveyear plan for the period from fiscal 2017 to fiscal 2021, andwill resolutely undertake activities in accordance with the plan.

TOPIC
Holding a Sustainability Conferencein Europe
Toyota Material Handling Europe AB (TMHE), a
consolidated subsidiary overseeing the materials handlingequipment business in Europe, held a Sustainability
Conference in September 2017, with participants fromthe production and non-production bases of the Toyota
Industries Group in the region. The aim was to share themedium- to long-term environmental and safety policies aswell as best practices of each company in these two areas.
The conference included workshops on various
topics, such as the progress of individual companies
toward achieving their CO2 emissions reduction targets,
medium- and long-term CO2 reduction initiatives, theimpact of sustainability on corporate competitivenessand response to chemical substances regulations.
Participants
proactively exchanged
information andengaged in animateddiscussion on current
and future relevant
issues.
Sustainability Conference in Europe

Financial Section /Corporate Information

Notional Diagram of Global Environmental Commitment(1) Establishing a low-carbon emission society⇒ Globally take on challenge of establishing a zero CO2emissions society(2) Establishing a recycling-based society⇒ Take on challenge of minimizing the use of resources(3)	Reducing environmental risk and establishing a society inharmony with nature⇒ Generate positive influence on biodiversity(4) Promoting environmental management⇒ Enhance consolidated environmental management andpromote enlightenment activities

Promotion of
ESG Initiatives

Environmental risk
reduction
Society in harmony
with nature

Aspirations in 2050

Strategies andBusinesses

As one tenet under our Basic Philosophy, Toyota Industries
works to contribute to regional living conditions and social
prosperity and also strives to offer products and services thatare clean, safe and of high quality. Accordingly, in February
2011, we established the Global Environmental Commitment,a specific environmental action guideline, to be shared andimplemented throughout the Toyota Industries Group. The
entire Toyota Industries Group will dedicate concerted efforts
to realizing a prosperous life in harmony with the naturalenvironment.

Company Introduction

Global Environmental Commitment

59

Environmental Initiatives

Structure to Implement Environmental Management

Environmental Impact Flow and Environmental Accounting

Positioning environmental response as one of its most crucial management issues, Toyota Industries is enhancing its
environmentally oriented corporate management on a global basis through the promotion of consolidated environmental
management.

In this section, we provide an overall picture of environmental impact resulting from our global business activities and report
the results of environmental accounting (environmental conservation cost, environmental conservation benefits andeconomic benefits of environmental conservation initiatives).

Promotion of Environmental Management
SystemEnvironmental Impact Flown Environmental Management Structure

Environmental Committee

PresidentInternal audit

Specialized committees•Team leader•Supervising auditors•Auditors

Product Environment Subcommittee
Production Environment Subcommittee

Chief environmental administrator

Company-Wide CO2Emission Reduction Conference

Admin office
Divisions
Materials Handling Equipment

Company-Wide CO2 Zero
Emissions Challenge Subcommittee

VehicleEngineCompressor

Division-Based
Promotion Committees

Electronics
Textile Machinery

Environmental Conservation Organization by manufacturing plants(environmental risk management overseen by plant managers)n Companies Subject to Consolidated Environmental Management (As of March 31, 2018) * Only the names of production bases are listed.

Asia: 14 production bases; 11 non-production bases

Toyota Industry (Kunshan) Co., Ltd. (China)
TD Automotive Compressor Kunshan Co., Ltd. (China)
Yantai Shougang TD Automotive Compressor Co., Ltd. (China)
Zhejiang Aichi Industrial Machinery Co., Ltd. (China)
Uster Technologies (Suzhou) Co. Ltd. (China)
Cascade Xiamen Forklift Truck Attachment Co., Ltd. (China)
Cascade Hebei Forks Co., Ltd. (China)
Tailift Machinery & Equipment (Qingdao) Co., Ltd. (China)
Toyota Industries Engine India Private Limited (India)
Kirloskar Toyota Textile Machinery Pvt. Ltd. (India)
P.T. TD Automotive Compressor Indonesia (Indonesia)
Cascade Korea Limited (Korea)
Tailift Material Handling Taiwan Co., Ltd. (Taiwan)
Toyota Industrial Equipment Vietnam Co., Ltd. (Vietnam)

60

Toyota Industries Report 2018

City gas

86,786 km3N

LPG

4,539 tPetroleum products

4,100 kl

Coal products

7,082 t

LNG

1,344 tR&D/Design

Procurement

Production*1: Terajoule is a unit used to measure heat. 1 TJ = 1012 joules■ Raw Materials [consolidated]
Raw material consumption

Transportation/Sales

Greenhouse gases other than CO2

3,964 t-CO2

CO2 from logistics

30,099 t-CO2

SOx (Sulfur oxides)

413 kgNOx (Nitrogen oxides)

143 t

VOC (Volatile organic compounds)■ Chemical Substances[Japan consolidated]
Emissions/transfers of PRTR
law designated substances

439 t■ Waste [consolidated]

790,022 t

122,521 t

Waste generation■ Water [consolidated]
Water consumption

1,453 tUsage

4,873 km3

■ Into Waterways[consolidated]■ Chemical Substances

37 t

Water pollutants[Japan consolidated]
PRTR law*2 designatedsubstances

Recovery/Recycling

1,447 t2,407 km3

Discharge of treated wastewater*2: Short for Pollutant Release and Transfer Register, the PRTR law is a scheme whereby businesses measure the release and transfer of PRTR designated pollutants and report theirperformance to the government. The government then compiles this data and releases it to the public.

Environmental Accounting
Fiscal 2018 Environmental Accounting*3
Scope of data collection: Toyota Industries Corporation
Period of data collection: April 1, 2017 – March 31, 2018
*3: Environmental accounting data is collected in compliance with the Ministry of the Environment’s Environmental Accounting Guidelines 2005 Edition.

Europe: 9 production bases; 55 non-production bases
Toyota Material Handling Manufacturing France SAS (France)
TD Deutsche Klimakompressor GmbH (Germany)
Toyota Material Handling Manufacturing Italy SpA (Italy)
L.T.E. Lift Truck Equipment S.p.A. (Italy)
Cascade Italia S.r.l. (Italy)
Toyota Material Handling Manufacturing Sweden AB (Sweden)
Uster Technologies AG (Switzerland)
Cascade (U.K.) Limited (U.K.)
Vanderlande Industries B.V. (Netherlands)

1,272,516 MWh

Financial Section /Corporate Information

As in the previous fiscal year, in fiscal 2018 we conducted
introductory educational courses to foster the knowledge
needed for environmental management and an introductory

Following the revision of the international standard ISO
14001 in September 2015, we reviewed our Environmental
Management Manual and redefined its regulations. In August
2016, we initiated activities based on the new regulations.
By having auditors who thoroughly understand the revised
standard perform internal audits, we have confirmed theprogress of each department in conforming to the revised
standard.
An external review by a third party has also confirmedthat our shifting to the revised standard has been proceeding
appropriately.

Electricity

913,123 t-CO2

Japan

n Non-consolidated: 10 production bases;
8 non-production basesn Consolidated subsidiaries in Japan: 15 production
bases; 21 non-production bases
Tokyu Co., Ltd. (Aichi)
Tokaiseiki Co., Ltd. (Shizuoka)
Miduho Industry Co., Ltd. (Aichi)
IZUMI MACHINE MFG. CO., LTD. (Aichi)
Hara Corporation (Gifu)
Mino Tokyu Co., Ltd. (Gifu)
Altex Co., Ltd. (Shizuoka)
Aichi Corporation (Saitama)
Nagao Kogyo Co., Ltd. (Aichi)
Unica Co., Ltd. (Aichi)
Nishina Industrial Co., Ltd. (Nagano)
Iwama Loom Works, Ltd. (Aichi)
HANDA Casting Company (Aichi)
Takeuchi Industrial Equipment Manufacturing Co., Ltd. (Aichi)
Sugiyama Kogyo Co., Ltd. (Aichi)

Oceania: 1 production base; 4 non-production bases
Cascade (Australia) Pty. Ltd. (Australia)

North America: 16 production bases; 34 non-production bases
Cascade (Canada) Ltd. (Canada)
Toyota Industrial Equipment Manufacturing, Inc. (U.S.A.)The Raymond Corporation (U.S.A.)
Raymond-Muscatine, Inc. (U.S.A.)TD Automotive Compressor Georgia, LLC (U.S.A.)
Michigan Automotive Compressor, Inc. (U.S.A.)
Indiana Hydraulic Equipment Corp. (U.S.A.)
North Vernon Industry Corp. (U.S.A.)
Cullman Casting Corporation (U.S.A.)
Toyota Industries Compressor Parts America, Co. (U.S.A.)
Uster Technologies, Inc. (U.S.A.)
Cascade Corporation (U.S.A.)
PSM LLC (U.S.A.)
American Compaction Equipment, Inc. (U.S.A.)
Tailift Material Handling USA Inc. (U.S.A.)
Bastian Solutions, LLC (U.S.A.)

Latin America: 1 production base; 5 non-production bases
Toyota Material Handling Mercosur Indústria e Comércio deEquipamentos Ltda (Brazil)

Promotion of
ESG Initiatives

Head Office
Corporate Planning
R&D
Purchasing
Quality Assurance
Human Resources
General Administration

Response to the Revised ISO 14001
Standard

CO2 emissions

16,939 TJ*1

Strategies andBusinesses

Responsible internal auditor

Energy consumption■ Into the Air [consolidated]

OUTPUT

Committees

Environmental
Impact Flow

■ Energy [consolidated]

INPUT

Organizations

educational course
for environmental
audits to cultivate
knowledge andtechniques ofinternal audits.
Department heads
and employees
proactively attendedAuditor training by an external lecturer
these courses
to deepen theirunderstanding of environmental management. For internal
auditors, we provided auditor training by an external lecturer
for upgrading the quality of our internal audits.

Company Introduction

Toyota Industries has positioned environmental response as
one of its most crucial management issues. To quickly reflect
top management’s decisions on business operations, Toyota
Industries has established and been operating a Companywide integrated environmental management system (EMS),
with the president at the top.

n Environmental Conservation Cost
Category(Millions of yen)

FY2018Environmental Impact

FY2017

Investment

Expenses

Investment

Expenses

596

195

833

120

675

2,825

450

2,335

261

124

129

140

Upstream/downstream costs

0

449

0

568

Management costs

0

187

0

276

Research and development costs

78

3,882

7

2,398

Social contribution activity costs

0

103

0

92

Environmental remediation costs

0

0

16

0

1,610

7,765

1,435

5,929

Pollution prevention costs
Business Global environmental
area costs conservation costs
Resource recycling costs

Total

9,375

n Environmental Conservation Beneﬁts

7,364

Comparison with Previous Fiscal YearCO2

625 t increase

Generation of waste products

4,347 t increase

Water

114,166 m3 increasen Economic Beneﬁts of Environmental Conservation Initiatives(Millions of yen)

Item
Revenue

Cost reduction

Total

Details

AmountReturns from sale of recycled waste products

4,505

Energy cost reductions(63)

Cost reduction by resource savings(including reductions in amount of water use,
wastewater treatment costs, etc.)

(42)
4,400

61

Environmental Initiatives

n Product Related
Sixth Environmental Action Plan Targets

Sixth Environmental Action Plan

Segments

The results of our activities in fiscal 2018 showed steady progress across the board toward achieving respective targets forfiscal 2021.

Progress of Sixth Environmental
Action Plann Production Related
Segments

Reduce CO2 emissions from production
activities• Develop and introduce productionengineering technologies with lower CO2
emissions• Reduce CO2 emissions by fully
implementing improvement activities on adaily basis• Develop innovative CO2 reduction
technologies that utilize clean energy• Manage greenhouse gases other than CO2

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

62

Toyota Industries Report 2018

Nonconsolidated

FY2021 Targets

Control Items Base Year (FY)
Totalemissions2006

Nonconsolidated

CO2
emissionsfromlogistics

Promote measures against resource
depletion by recycling waste• Reduce the volume of discarded materials
by taking action at the source, such as
improving yields and other measures• Promote internal reuse
Promote effective resource utilization in
production activities• Reduce use of packaging materials• Monitor water input and output in eachcountry/region and develop and promote
appropriate measures

Waste
generation
volumeFurther reduce emissions of substances ofconcern• Minimize the use of substances of concern
by promoting efficient production activities

VOC*2
emissions

Nonconsolidated

Targets

–16%

–10%

–24%
Emissionvolume perunit ofproduction*1

Emissionvolume perunit ofproduction

–26%

2006
–27%

2007

Japan
consolidated

–35%

–31%
Emissionvolume perunit ofproduction

Implement initiatives to promote
Establishing a
3R (reduce, reuse and recycle)
Recycling-Baseddesign for effective resource
Societyutilization• Reduce use of resources through longer product life
• Reduce use of resources through standardization,
modularization and reduction of components• Reduce use of resources through development oftechnologies to enable weight reduction and downsizing• Promote reuse of components and resources• Developed reach-type electric lift truck (longer lifeof components)• Developed reach-type electric lift truck (reduction
in number of components)• Developed new 400W DC-AC inverter

Reducing
Environmental
Risk and
Establishing aSociety inHarmony with
Nature–30%

Reduce emissions to improve air
quality in urban areas in all• Develop engines that meet future regulations
countries and regions
Manage chemical substances
contained in products

Sixth Environmental Action Plan Targets

Reducing
Environmental
Risk and
Establishing aSociety inHarmony with
NatureAction Policies

Promoting
Environmental
Management–31%

Emissionvolume perunit ofproduction

2006

–36%
(24g/m2)

Augment and promoteconsolidated environmental
management• Build a global environmental management system andpromote related activities to:Comply with environment-related laws in each country
and region
Formulate a medium-term plan based on visualization ofenvironmental risks and conduct activities to prevent
risks from occurring
Enhance risk communication with relevant organizations
and local residents
Achieve the highest-level environmental performance ineach country and region• Enforce strategic environmental management that
integrates environmental activities and business activities

Enhance education andenlightenment activities• Extend the scope of Toyota Industries’ enlightenment• Held environmental seminar
activities to consolidated subsidiaries in and outside Japan• Conducted environmental awareness survey• Give back to society the outcomes of enlightenment
among employees
activities

Promote environmental activities
in collaboration with business
partners• Ensure compliance with laws and regulations and improve
environmental performance based on the Environmentally
Preferable Purchasing Guidelines• Held briefing sessions for subsidiaries in Japan• Pursue higher brand image through proactive information
disclosure• CDP*4 climate change: ranked B(on a performance band of A to F)• CDP water: ranked B(on a performance band of A to F)• Nikkei’s Environmental Management Survey:
ranked 9th (out of 1,724 target companies)• Won Chairman Prize of The Energy Conservation
Center, Japan, in the Energy Conservation Grand
Prize (two products)• Won Excellence Award in the Environmental
Communication Awards• Won Best Plant Award (business office category)in the Green Curtains Competition in Kariya• Won Superior Award in the Toyota Environmental
Activity Award

–29%

–36%
(24g/m2)

FY2018 Achievements

Augment activities related toprotection of biodiversity

Improve eco-conscious brand
image

Nonconsolidated(automobile
body)Specific Actions

2006

Nonconsolidated• Supported chemical substance management at
consolidated subsidiaries• Conducted survey on chemical substances
contained in products• Share the biodiversity guidelines across all Toyota Group
companies and contribute to the expansion of a habitat
for living organisms• Participated in All Toyota Green Wave Project• Formulate and promote plans to link activities and bring• Created an animal path within the Higashiura
more greenery by undertaking activities for conservation of
Plant in Aichi Prefecture
biodiversity throughout the Toyota Industries Group,
including at consolidated subsidiaries in and outside
Japan

–28%

–27%

• Investigate chemical substances contained in products
and manage switching over of SVHC*3 and othersubstances of concern to other substances• Developed engine for marine usen Others

Segments

GlobalCO2emissions

Achievements• Developed reach-type electric lift truck• Developed next-generation electric compressor• Developed air-jet loom
• Developed next-generation air compressor forfuel cell vehicles• Promoted activities to reduce environmental risks
among consolidated subsidiaries in and outsideJapan

Financial Section /Corporate Information

Establishing a
Recycling-BasedSociety

Scope

Establishing a Reduce CO2 emissions throughLow-Carbon
product and technology
Emission Society development• Develop technologies that contribute to an even greaterlevel of energy efficiency• Develop products and technologies that respond toelectrification• Develop technologies to enable weight reduction• Reduce energy loss
• Develop technologies for the realization of a hydrogenbased society

Promotion of
ESG Initiatives

Reduce CO2 emissions from productionrelated logistics• Improve transportation efficiency throughsuch measures as modal shift and bettercargo loading efficiency

FY2018 Achievements
Subject

FY2018 Achievements

Strategies andBusinesses

Establishing a
Low-Carbon
Emission Society

Action Policies/Specific Actions

Specific Actions

Company Introduction

and are promoting activities according to the plan. Throughactivities undertaken during fiscal 2018, we made steadyprogress toward achieving respective targets for fiscal 2021.

With an eye to realizing a prosperous life in harmony with
the natural environment through the establishment of asustainable society, we formulated the Sixth Environmental
Action Plan for the period from fiscal 2017 to fiscal 2021

Action Policies*1: We manage emissions in each business by using either unit of production or unit of sales as a basic unit of emissions. The weighted average of reduction rates of all businesses is used as ourmanagement index.
*2: Volatile Organic Compounds*3: Substances of Very High Concern*4: An international NGO undertaking a project through collaboration among institutional investors to call for disclosure of strategies against climate change issues and greenhouse gas emissions
data to leading companies around the world† Details of the Sixth Environmental Action Plan are available at:https://www.toyota-industries.com/csr/environment/management/plan_6/

63

Environmental Initiatives

Establishing a Low-Carbon Emission Society
We position the curbing of global warming as our most crucial environmental task. We have been working to reduce CO2
emissions in our global business activities and at the same time accelerate our efforts to develop more environment-friendly
products.

Summary
CO2 Emissions (Production Activities)

Total emissions (non-consolidated)

16

FY21 target:

10% reduction% reduction (vs FY06 level)(vs FY06 level)

Emission volume per unit of production (global)
26% reduction% reduction (vs FY06 level)(vs FY06 level)

We have been promoting kaizen by karakuri initiatives to attainkaizen (improvement) by utilizing Japan’s traditional, simple
mechanical systems called karakuri, which do not require
power generated by motors or other devices.
In fiscal 2018, the Nagakusa Plant, a production base of
automobiles in Aichi Prefecture, adopted karakuri in a process
to sort parts.
Previously, the sorting of parts had been done by using airpowered equipment, thus consuming a considerable amountof energy.
To eliminate the use of air, the plant created a nonpowered mechanical system that uses a combination ofgravity, the principle of leverage, coil springs and pulleys
and successfully reduced its annual CO2 emissions byapproximately 48 tons.
This new, non-powered equipment won a Good Idea
Award in the Karakuri KAIZEN Exhibition 2017 hosted by theJapan Institute of Plant Maintenance.

As part of its efforts to reduce CO2 emissions, the Toyota
Industries Group proactively promotes the use of renewableenergy such as solar, wind and hydraulic power.
For example, TD Automotive Compressor Kunshan Co.,
Ltd. (TACK), a production subsidiary in China, installed a solar
panel system on the roof of its plant in December 2017. Thissystem is expected to generate 16% of its annual electricity
consumption, which equals to annual CO2 emissions ofsome 1,250 tons. The Raymond Corporation and RaymondMuscatine Inc., production subsidiaries in the United States,
have purchased renewable electricity certificates*, which
as a total of the two companies are equivalent to 49% ofannual electricity consumption and about 3,800 tons of CO2
emissions, and have contributed to lower CO2 emissions.
Additionally, Toyota Industries Engine India Private Limited(TIEI), a production subsidiary in India, has purchased
electricity from a solar power source and reduced its annual
CO2 emissions by 14,000 tons.

Toyota Industries has been proactively promoting
development and design of eco-conscious products. As
part of the efforts, we launched the Environmentally Friendly
Product Certification System in fiscal 2007, which certifies
products that possess exceptionally high environmental
performance, and have been showcasing these products tothe public. With the addition of one product in fiscal 2018,a total of 21 products have obtained certification under thissystem since its launch.
We will continue to promote the development of ecoconscious products in the future as well.

* Environmental added value of electricity derived from a renewable energy source converted
into tradable certificatesn Karakuri Mechanism

Reducing CO2 Emissions by Renewable
Energy-Derived Hydrogen

Initiatives for Establishment of a Low-Carbon
Emission Societyn CO2 Emissions (Non-consolidated/Consolidated subsidiaries in andoutside Japan)(1) Pull the lever.

Consolidated subsidiaries outside Japan
Non-consolidated
Consolidated subsidiaries in Japan
Reduction rate (non-consolidated)
Reduction rate (consolidated)
Reduction rate

1.0
1.00
1.00

0.78

0.77

0.76

0.76

0.78

0.78

0.76

0.72

0.73

0.73

Total
emissions
(kt)

888

926

909

940

667

400

Toyota Industries Report 2018

Approx.

50% lower(compared withprevious models)(6) Next hanger moves in place.

(4) This hanger moves
to the right as thedevice comes down.

200

64

Lifecycle CO2 emissions(3) A lifting/lowering
device carrying
a part comes
down.

600

(FY) 06

For baggage towing tractors used in airports, weoffer an electric model along with internal-combustion
engine models. This 2.5-ton electric towing tractor
simultaneously delivers high environmental performance(no emissions of exhaust gas) and powerful driving
performance.
The product has been certified as Super
Environmentally Friendly Product for realizing
considerably lower CO2 emissions throughout its
lifecycle.

913

800

0

Key features to reduce environmental impact(5) Stopper is released.

0.6
Good

1,000

Good

(2) Stopper isreleased.

0.8

Electric towing tractor with 2.5-ton capacity(Super Environmentally Friendly Product*)Financial Section /Corporate Information

Toward the goal of achieving zero CO2 emissions in 2050,
L.T.E. Lift Truck Equipment S.p.A. (LTE), a production
subsidiary in Italy, has been making various CO2 emissions
reduction efforts, such as using renewable energy andundertaking energy-saving activities. As one example, LTE
installed a hydrogen station on the company premises in
September 2017. The station is for charging fuel cell lift trucks
with hydrogen generated by using electricity from a solar
panel system, thereby helping LTE reduce its CO2 emissions.
LTE will continue to actively promote the use of hydrogen
within its plant.

Product Certified in Fiscal 2018

Promotion of
ESG Initiatives

Under the Sixth Plan, we are working toward achieving
fiscal 2021 targets of reducing total non-consolidated CO2
emissions from production activities by 10% and global
emission volume per unit of production by 26%, both from thefiscal 2006 level. In fiscal 2018, we made steady progress inachieving these targets through our CO2 emissions reduction
efforts, such as loss reduction activities to eliminate wastefuluse of energy at plants and switching to more energy-efficient
air conditioners.

Certification of Environmentally Friendly
Products

Strategies andBusinesses

24

FY21 target:

Reducing CO2 Emissions by Using
Renewable Energy

Company Introduction

FY2018 Results

Saving Energy by Karakuri* For a definition, please visit our Website at:
Hydrogen station and a fuel cell lift truck (LTE)

14

15

16

17

https://www.toyota-industries.com/csr/environment/
technology/authorization/

18

65

Environmental Initiatives

Establishing a Recycling-Based SocietyWith a view to establishing a recycling-based society, we have been striving to reduce resource consumption.

Summary
Waste Generation Volume (Production Activities)

Waste generation volume per unit of production(non-consolidated)

31

FY21 target:% reduction (vs FY06 level)

29% reduction(vs FY06 level)

Waste generation volume per unit of production(non-consolidated/consolidated subsidiaries in Japan)% reduction (vs FY06 level)

27% reduction(vs FY06 level)n Changing Sheet Retrieval Method

Before improvement
Retrieving

Reduction rate (Non-consolidated/consolidated subsidiaries in Japan)

1.00
1.00
0.71
Total
generation
(kt)

81

0.69

0.70

0.69

65

69

0.73
0.71

0.80

Retrieving

Inspecting

2006

2017

2018

Repairing material ANo
defects!
After improvement

2021

The Anjo Plant, a production base of electronics components
in Aichi Prefecture, has been carrying out activities to reduce
the amount of wasted parts by eliminating defects.

Toyota Industries Report 2018

Mounting

0.60 Good

Reducing Waste Generation by Improving
the Sheet Retrieval Method

66

Repairing material B

Obstructive
plates(FY)

Initiatives Related to Water Risk

Part

After improvement

Thicknessmeasuring tool

Part

Part

Measuring the
thickness ofthe sheet
Sheet gets caught by theobstructive plates and warps
Second sheet drops
back into the container

Manufacturing Section
No. 1, Manufacturing
Dept., Foundry Division,
Toyota Industry(Kunshan) Co., Ltd.
(As of March 31, 2018)

Repeating many tries with different mixing ratios wasdifficult, but I am happy to come up with the optimum
ratio. We will continue to work proactively to achieve
improvements.

Reduction rate

500Before improvementPart

Sun Yi,Managern Changing the Mixing Ratio of Repairing Materials

Sheetstoragecontainer
Sheet

1.00

Good

Toyota Industry (Kunshan) Co., Ltd. (TIK), a production
subsidiary in China, has been working to reduce the amountof waste by reusing waste generated in the foundry process.
In the production process of foundry parts, molten ironleft over from the pouring process is transferred to a container,

Consolidated subsidiaries in Japan

Reduction rate (non-consolidated)

100

Reducing Waste Generation by Changing
a Container Repairing Material Used in
the Foundry Process

Waste sandRepairing material A

Repairing material B:
No longer used
(replaced by waste sand)Repairing material A:
Using a smaller amountToyota Industries uses water in many processes, for example,
for washing products and cooling production facilities.
Globally, consumption of water, which is one of the mostimportant resources, is increasing in line with growth in theworld’s population. Flooding and other water-related natural
disasters due to climate change cause serious impact. We
duly consider that these factors present risks to our businessactivities.
In fiscal 2017, we identified and assessed water risks
at each base using Aqueduct, a global water risk mapping
tool developed by the World Resources Institute (WRI),
and various public databases available in corresponding
regions. To increase the credibility of our externally disclosed
information, we obtained third party verification* of the fiscal
2018 water consumption and wastewater discharge data of
our production bases and consolidated subsidiaries. We willcontinue to work to assess and mitigate water risks in our
supply chain while seeking ways to conserve water resources.

Financial Section /Corporate Information

Non-consolidated

Defects!

Two retrieved
togetherInitiatives for Establishing a Recycling-Based Societyn Waste Generation(Non-consolidated/Consolidated subsidiaries in Japan)

Mounting

optimization by reflecting opinions of other departments.

Promotion of
ESG Initiatives

In seeking to minimize resource consumption in 2050, weare making efforts to reduce our waste generation volume
by implementing measures to reduce resource consumption
at the source and promoting internal reuse of waste. We set
out targets of reducing waste generation volume per unit ofproduction compared with the fiscal 2006 level by 29% on a
non-consolidated basis and by 27% for Toyota Industries andits consolidated subsidiaries in Japan. Accordingly, we havebeen promoting activities toward these targets.

We would like to continue our improvement activities,
which will lead to a reduction in waste, while ensuring
the quality of products.

Strategies andBusinesses

31

FY21 target:

Manufacturing Section,
Manufacturing Dept.,
Electronics Division(As of March 31, 2018)

Company Introduction

FY2018 Results

In a process to retrieve a sheet from its storage container
and mount it on a part, burr from the sheet molding or static
electricity sometimes causes two sheets to be removed at thesame time, making the resulting part defective. To eliminate
such defective parts, the plant examined ways to make sure
one sheet is retrieved at a time.
By trial and error, the plant came up with an idea to add
obstructive plates at the storage container. These plates“obstruct” the retrieval of a sheet, causing it to warp. If
another sheet is under it, warping will separate the second
sheet and drop it back into the container. Moreover, the plantbegan to use a thickness measuring tool to make sure there is
only one sheet before mounting it onto a part and succeededin eliminating defects and wasted parts. The thickness of asheet varies from product to product. As such, the number
and size of the plates are changed accordingly to ensure one
sheet is retrieved at a time. This improvement idea of adding
obstructive plates was generated from the perspective of total

AkihiroHayakawa,
Supervisor

in which it cools and solidifies. Removing the solidified ironfrom the container sometimes damages its inner walls,
requiring application of repairing materials before using thecontainer again.
Previously, TIK had purchased new repairing materials.
To reduce costs, TIK examined a method to substitute one of
the two repairing materials with waste sand that possesses
an equal level of fire resistance. After a number of trials
and errors, TIK found the best mixing ratio of the remaining
repairing material and waste sand and confirmed that it does
not cause any quality issues. This replacement has enabled
TIK to reduce the annual amount of waste sand by about
30 tons.
This project won a Best Practice Award in fiscal 2018
under our internal award program to recognize excellent
environmental improvement activities.

* See page 74 for details.

67Environmental Initiatives

Reducing Environmental Risk and Establishing a Society inHarmony with Nature
We have been making efforts to reduce the use of substances of concern while carefully monitoring the latest trends inenvironmental laws and regulations on a global basis. At the same time, we have been promoting activities for conservationof biodiversity toward realizing a society in harmony with nature.

Summary
VOC Emissions (Production Activities)

Emissions per unit of production(non-consolidated/automobile body)

36

FY21 target:% reduction (vs FY06 level)

36% reduction(vs FY06 level)

Study group session at a production subsidiary in Vietnam

68

Toyota Industries Report 2018

As one effort to conserve biodiversity, Toyota Industries has
been collaborating with the Aichi prefectural government in
its initiative to foster the development of ecological networks
throughout the prefecture.
We joined the Chita Peninsula Ecological Network Council
in fiscal 2012 and have since been carrying out activities
linked to the conservation of biodiversity in the local naturalenvironment in collaboration with various stakeholders,
including local governments, companies, NPOs, expert bodies
and students.
In March 2018, we teamed up with the council and set up

Tree planting at the animal path completion ceremony

Planning and Management
Group, Environment Office,Plant Engineering &Environment Dept.,
Production Headquarters(As of March 31, 2018)

I feel very pleased that we made a step forward toresolve a local issue through the creation of this animal
path. This opportunity has also made us renew ourdetermination to proactively conduct activities toconserve biodiversity.

Holding an External Environmental
Education Class
Since fiscal 2010, Toyota Industries has been providing an
external environmental education class for children who willbe leading the next generation with an aspiration to cultivateawareness for environmental conservation and contribute to
the realization of a sustainable society.

External environmental education class

Handing out saplings to employees

Financial Section /Corporate Information

Many of the chemical substances needed for our production
activities may cause adverse effects on the environment.
Thus, appropriate management of chemical substances is
crucial in ensuring safe handling and minimizing potential
harmful effects.
To appropriately manage chemical substances containedin raw materials and products, we have been assisting ourconsolidated subsidiaries and business partners outside

Creating an Animal Path to Improve Natural Habitatsof Livings Organisms

Kazutaka
Narukawa

Toyota Industrial Equipment Mfg., Inc. (TIEM), a production
subsidiary in the United States, promotes tree planting
at home by distributing saplings to employees and local
residents on Earth Day and Arbor Day every April.
In April 2017, TIEM handed out 1,600 red oaksaplings. TIEM intends to continue this activity to increase
environmental awareness that we need to live in harmony withnature and curb global warming.

Promotion of
ESG Initiatives

Strengthening Management of Chemical
Substances at Consolidated Subsidiaries
Outside Japan

We believe that it is important to undertake businessactivities while continuously paying attention to the impactof these activities on the natural environment. Based on thisbelief, we have formulated the biodiversity policy and beenpromoting initiatives accordingly. The policy clearly stipulates
that we seek to reduce the impact of our business activities
on biodiversity and work with local communities for theconservation of biodiversity.

Employees Planting Trees on Earth Day

Strategies andBusinesses

Under the Sixth Plan, we set a target of reducing emission
volume per unit of production for volatile organic compounds(VOC) from the automobile body painting process by 36%
from the fiscal 2006 level and have been striving to reduce
VOC emissions. In fiscal 2018, we continued our efforts
to increase the recovery rate and enhance maintenanceand management of thinner, a solvent used for cleaning.
Consequently, we were able to cut down emission volume perunit of production in fiscal 2018 by 36%.

Initiatives for Conservation of Biodiversity

In August 2017, we held a class for about 30 local
elementary school students on the theme of conserving
biodiversity during the “Environment Summit in 2017” held in
Minamichita-cho, Aichi Prefecture, by the Minamichita Town
Development Council. Participants created an ecologicalpyramid using paper cups printed with illustrations of livingorganisms, learned about diversity and the relationship among
them and thought about what each of us can do to protect
the future of the Earth.

Company Introduction

FY2018 Results

Japan in establishing a system to manage chemical
substances. In fiscal 2018, we started providing suchsupport to two consolidated subsidiaries and several
business partners.
We will continue to provide support and undertake
activities to prevent violations of chemical substances
regulations at production bases outside Japan.

an environment within the Higashiura Plant in Aichi Prefecture
to expand the habitat of foxes. Recently, we have found foxes
are living in forests surrounding the plant. But because there
is not a large enough habitat, many were fatally involved intraffic accidents on the neighboring roads. To provide a safe
passage between these forests, Toyota Industries and experts
from the council worked together and created an animal
path within the plant premises. At the completion ceremony,participants planted trees that form a part of the path. We
intend to monitor the inhabiting status of foxes using cameras
installed along the path while implementing additional
measures as necessary to create a better environment.

Planting trees

69Environmental Initiatives

Environmental Management
Toyota Industries proactively discloses its initiatives for reduction of environmental risk and other environmental information.

Status of Compliance with Environmental
Laws

Soil and Groundwater Pollution
Countermeasures

Measurement results are available at:Internally Conducting Water Quality
AnalysisInternal water quality analysis

70

Toyota Industries Report 2018n Number of Persons Qualified as Pollution Control Managers(As of March 31, 2018)

Category

Number of persons qualified

Air

86

Water

101

Noise and vibration

268

Dioxin19

Internal education for acquiring environment-related qualifications

We will continue to provide education necessary toincrease the number of qualified personnel.

Establishing a Sustainability Dojo in
SwedenToyota Material Handling Manufacturing Sweden AB(TMHMS), a production subsidiary in Sweden, has establisheda sustainability dojo in its plant to increase employees’
awareness for safety, the environment and product quality.
This dojo allows employees to learn energy-saving, waste
reduction and chemical substances management procedures
specific to a manufacturing site. They can also practice theproper use of safety protective equipment and operation

Ceremony to award excellent environment posters at Iwama Loom Works, Ltd.

Sustainability dojo

Local cleanup activities by Miduho Industry Co., Ltd.

Financial Section /Corporate Information

Toyota Industries periodically conducts internal water
quality analysis using official methods in order to verify thatwastewater discharged from its plants and groundwatercomplies with external standards, including applicable laws,
regulations and ordinances, and to enable swift action when
there is a change in water quality.

Even though Toyota Industries has secured the legally required
number of persons having environment-related qualifications,
we are promoting further acquisition of qualifications by
employees.
In fiscal 2018, we provided internal education to
encourage acquisition of the Water Pollution Control Manager
qualification, which is a national qualification, and two
employees have been newly qualified.

Every year, Toyota Industries carries out a three-month
Environment Strengthening Month from June to August withthe aim of increasing environmental awareness of Group
employees and their families and promoting energy saving
through various events.
In fiscal 2018, each of the consolidated subsidiaries inJapan proactively planned and carried out unique activities,
such as soliciting entries to their environment poster contest,
holding “No Car Days” to encourage employees to use
commuting means other than private cars and joining local
cleanup activities.

Promotion of
ESG Initiatives

http://www.toyota-industries.com/csr/environment/
process/groundwater/

Efforts to Increase Employees Qualified
under Environment-Related Laws

In fiscal 2018, we held a seminar on water quality
analysis for relevant departments to foster anunderstanding of the water quality analysis ofwastewater and promote acquisition of the Water
Pollution Control Manager qualification. The seminar
included an explanation of analysis procedures, handson exercise of an analysis and a practice examination
based on the past tests. These were well received byparticipants. The seminar was also helpful for our own
work, because teaching meant relearning such things
as the mechanism of analysis equipment. We plan tohold this seminar on a continuous basis.

Environment Strengthening Month in the
Toyota Industries Group

Strategies andBusinesses

Toyota Industries carries out surveys and purification ofsoil and groundwater contaminated from the past use oftrichloroethylene. We regularly report the survey results
to local government authorities and provide information
at local community meetings. As measures to prevent
pollution from substances covered by the Soil Contamination
Countermeasures Law as well as from grease and oils, wehave drilled observation wells at all plants to conduct regularchecks.

Water Environment Group,
Environment Office, Plant
Engineering & Environment
Dept., Production
Headquarters(As of March 31, 2018)

Company Introduction

In fiscal 2018, there were no incidents of violations ofenvironmental laws throughout the Toyota Industries Group.
We will continue to reinforce our activities to prevent
environmental risk.

Our major efforts for prevention of irregular wastewater
discharges include developing an analysis plan, conducting
water quality analysis based on the plan, monitoring trends inanalysis results and sharing relevant information among therelevant in-house departments.
In fiscal 2018, we set up a system to internallymonitor measurement items added under the revised Soil
Contamination Countermeasures Law. We also participatedin the Comprehensive Accuracy Control Project of the Japan
Association for Working Environment Measurement to ensure
the accuracy of our analysis results. We will continue to strive
for the prevention of irregular wastewater discharges andimprovement of the analysis accuracy.

Kuniko Ogawa (left)
Mina Kato (right),
Working leaderof an overhead crane and actually experience lockouts ofvarious facilities. Other topics of learning include response toan accident, safety behavior and industrial ergonomics. Team
leaders in the plant first receive education at the dojo and thenshare their acquired knowledge with other team members.

71Environmental Initiatives

Holding Environmental Seminars

Detailed data is available at:

Emissions from Toyota
Industries’ businessactivities
Emissions other thanfrom Toyota Industries’
business activities

Scope 1

Direct emissions from Toyota Industries through the useof fossil fuels, etc.

Scope 2

Indirect emissions from the use of purchased energy
resulting from generation of electricity by power
plants, etc.

Scope 3Emissions associated with purchase of raw materials,
end use of Toyota Industries’ products by customers
and disposal of products

Capital goods
Fuel- and energy-related activities not included in Scope 1 or 2
Upstream transportation and distribution
Waste generated in operations
1

Employee commuting
Upstream leased assets

Included in Scopes 1 and 2[Compressor Division]More compact
processing lines

B (C)
9th place (36th place)

Ranked 9th among Manufacturing
Companies in the 21st Environmental
Management Survey
Toyota Industries earned 9th place, the highest everranking, in the overall manufacturing companies
category of the 21st Environmental Management
Survey conducted by Nikkei Inc. This survey evaluates
how well companies balance their environmental
measures with their efforts to improve management
efficiency. In the 21st survey, Toyota Industries was
highly regarded in the areas of “a structure to promote
environmental management” and “development of
eco-friendly products.” We will continue to make
Company-wide efforts to promote environmental
activities.

Energy Conservation
Grand Prize(The Energy Conservation
Center, Japan[ECCJ])

Chairman Prize of
ECCJ[Development
Department No. 2,
Engineering &Development
Headquarters]
Fuel cell lift truck

Environmental
Communication Awards(Ministry of theEnvironment)

Excellence Award

Toyota Industries Report
2017

Green Curtains Competition
Best Plant Award(Kariya-shi, Aichi)
Environmental Activity
Award program(Toyota Motor Corporation)

Superior Award

Kariya Plant’s green
curtains
Toyota Industries’ overall
environmental activities

TOPIC
Won TMC’s Superior Award forEnvironmental Activities
At the 2017 Toyota Global Suppliers Convention
held by Toyota Motor Corporation (TMC) at the
Nagoya Congress Center, Toyota Industries received
the Superior Award, the highest award in TMC’s
Environmental Activity Award program establishedin fiscal 2018. The award recognized our initiatives
toward a zero CO2 emissions society under our
aspirations in 2050.

Not applicableUse of sold products

External Environmental Awards

End-of-life treatment of sold products
Downstream leased assets

Not applicableFranchises

Not applicable

Investments

Not applicable
1

10

100

1,000

10,000100,000

Calculated by using the emissions associated with employee business travel as the baseline set at 1

Toyota Industries Report 2018

Chairman Prize of
ECCJ

Included in “Upstream transportation and distribution”

Processing of sold products

72

CDP water

TOPIC

Purchased goods and services

Downstream transportation and distribution

B (B)* An international NGO undertaking a project through collaboration among institutional
investors to call for disclosure of strategies against climate change issues and GHG
emissions data to leading companies around the worldn Scope 3 Emissions by Category (FY2018)

Business travel

Fiscal 2018 (Fiscal 2017)

CDP* climate change

Nikkei’s Environmental
Management Survey

Scope 3 / Category 11(91.6%)

Award winner

Financial Section /Corporate Information

We recognize that measuring the three scopes defined by
the GHG Protocol and turning the results into specific efforts
to reduce CO2 emissions are important in creating a lowcarbon society. Scopes 1 and 2 are GHG emissions from ourbusiness activities, the former being direct emissions fromour use of fossil fuels and the latter being indirect emissions
from the use of purchased energy resulting from generationof electricity by power plants and other facilities. Scope 3
emissions are indirect emissions associated with each productResultPromotion of
ESG Initiatives

Greenhouse Gas (GHG) Emissions in the
Supply Chain

Award program(host organization)

Strategies andBusinesses

Scope 1
(0.5%)
Scope 2
(1.6%)
Scope 3 /Category 1(5.1%)

Environmental seminar

Toyota Industries fosters environmental communication
with our stakeholders through proactive disclosure ofenvironmental information. Since fiscal 2015, we have been
participating in the Ministry of the Environment’s project for theestablishment of a framework for disclosure of environmental
information and examining the ideal way to disclose ourenvironmental information. We will continue to upgrade ourmethod of disclosure and contents to be disclosed.

Evaluation organizationsn GHG Emissions in Supply Chain (FY2018)

n List of External Environmental Awards

External Environmental Evaluationsn List of External Environmental Evaluations

https://www.toyota-industries.com/csr/environment/
process/scope3/

Scope 3 /Other
(1.2%)

External Evaluations of Toyota Industries’
Environmental Activities

Company Introduction

We hold environmental seminars to raise employees’
environmental awareness. In fiscal 2018, we invited Mr. Rintaro
Tamaki of the Japan Center for International Finance to givea lecture on “Climate Change and Business.” Some 150
employees, including directors of Toyota Industries and its
consolidated subsidiaries, attended the lecture and deepened
their understanding of action against climate change, its
relation with business operations and future trends.

from the purchase of raw materials to end use by customers
and disposal.
In the fiscal 2018 results, combined Scope 1 and 2
emissions accounted for 2.1% of the total emissions, with
Scope 3 emissions reaching 97.9%.
The largest source of emissions, which accounted for
91.6%, was Category 11 (Use of sold products) under Scope3, followed by Category 1 (Purchased goods and services)
also under Scope 3, which accounted for 5.1%.
Going forward, we will continue to monitor GHG emissions
within the entire supply chain and accordingly promote CO2
emissions reduction activities.

Toyota Industries’ environmental activities to date have beenhighly acclaimed by various organizations. In fiscal 2018, we
received five external awards, including two prizes under the
Energy Conservation Grand Prize program.

Receiving the award at the Toyota Global Suppliers Convention

73

Environmental Initiatives

Third Party Assurance of Environmental Performance Data
In order to ensure the transparency and accuracy of the information we disclose, the Toyota Industries Group obtained third
party assurance for its energy-derived CO2 emissions (Scopes 1, 2 and 3), waste generation as well as water consumption
and wastewater discharge volume data for fiscal 2018.

Verification by a Third Party

Comments by Mr. Koki Nohara of SGS Japan Inc. (Verifier)This year, I conducted verification of the Toyota Industries
Group’s water consumption and wastewater discharge
data in addition to Scopes 1, 2 and 3 emissions and waste
generation data. It was the third verification for the Group,and the scope of verification has been expanding each year,
which provides proof that Toyota Industries is making efforts
to ensure the reliability of the data it reports. Moreover, incalculating Scope 3 indirect emissions, one of the mostdistinctive characteristics of the GHG Protocol, a basic unitof emissions directly linked to business operations is first
calculated for each of the Scope 3 categories and then used
to obtain GHG emissions. In this way, Toyota Industries
ensures higher accuracy in its GHG emissions data. I hopethat Toyota Industries will continue to provide appropriate
reporting to its stakeholders from the perspectives of ensuring
the accuracy and adequacy of data it reports.

The verification statement of the third party organization is available at:https://www.toyota-shokki.co.jp/csr/environment/process/items/Verification2017_ENG.pdf

Toyota Industries obtained third party verification of its energyderived CO2 emissions, waste generation volume, water
consumption and wastewater discharge data for fiscal 2018.
Starting from fiscal 2018, water consumption andwastewater discharge were newly added in order to ensure
the reliability of the data.
On-site verification was performed by the verification
organization at two of our production bases in Aichi
Prefecture, namely, the Kariya Plant and Hekinan Plant, andthe transparency and accuracy of our environmental data
have been confirmed through the verification.
Using the procedures specified by the verification
organization, Toyota Industries conducted verification at theremaining eight production bases of Toyota Industries as well

as 13 consolidated subsidiaries in Japan and 21 consolidated
subsidiaries outside Japan.
We will continue to utilize this third party verificationin making continuous improvements in our environmental
activities and disclose data to our stakeholders in a moretransparent manner.

Third party verification at the Kariya Plant

Third party verification at the Hekinan Plant

n Bases Subject to Verification

Category
Non-consolidated

RegionJapan

Japan Consolidated Japan
Consolidated
subsidiaries outside
Japan

74

Toyota Industries Report 2018

Names of Bases and Subsidiaries
Kariya Plant, Takahama Plant, Nagakusa Plant, Kyowa Plant, Obu Plant, Hekinan Plant, Higashichita Plant,
Higashiura Plant, Anjo Plant, Morioka Works (Total of 10 bases)
Tokaiseiki, Tokyu, Altex, Iwama Loom Works, IZUMI MACHINE MFG., Miduho Industry, Nagao Kogyo,
Nishina Industrial, HANDA Casting, Unica, Hara, Aichi, Takeuchi Industrial Equipment Manufacturing(Total of 13 bases)

North America
Latin America IHC, NVIC, Raymond-Green, Raymond-Muscatine, TIEM, TIK, TIEI, KTTM, MACI, TACG, TACK, TDDK, YST,
Asia
TMHMF, TMHMS, TMHMI, TICA, TACI, TMHM, Cascade, TIEV (Total of 21 bases)
Europe