Relationship with
Our Stakeholders

Relationship with Our
Stakeholders

Relationship with Our Customers
Relationship with Our Business Partners
Relationship with Our Shareholders and Investors
Relationship with Our Associates
Relationship with Our Local Communities

P49–50
P51
P52
P53–56
P57–58Relationship with Our Customers
Adhering to a quality first approach, Toyota Industries practices monozukuri (manufacturing) that quickly responds to thediverse, ever-changing needs of customers.

Product quality●Safety●Eco-friendliness●Durability●Ease of use

Designquality●Brand strength●Corporate image●Sales●Service●Logistics●Workmanship

Manufacturing capabilities

Quality Vision 2020
All members in the Toyota Industries Group ensure
quality first and build in quality with ownership at
their own workplaces and positions in an effort tocontinuously supply attractive products/services that
anticipate global customers’ needs.
To achieve the goal of this vision, we issue the Quality
Guidelines, which identify priority quality-related issues tobe implemented in each fiscal year, to all production basesin and outside Japan and engage in quality assurance
activities accordingly. The implementation status of theseguidelines is reviewed by top management at the Quality
Functional Meeting chaired by the head of the Production
Headquarters*1 for identifying additional issues and devisingcountermeasures. Issues raised are followed up at meetingsof the Company-wide Council of Heads of Quality Assurance
Departments chaired by the head of the Quality Control
Department*1. The president also checks on the outcome ofthese activities through genchi genbutsu inspections. In thisFinancial Section /Corporate Information

ent
em
nag
lity
g
Ma lity
qua
turin
qua
ufac
ting
Man lity
r ke
Ma
qua

Quality levels that
customers truly
expectQuality forms the basis of our operations and is essential inattaining the goals of our Vision 2020. As such, we formulated
our Quality Vision 2020, which defines our philosophy inensuring quality.

Promotion of
ESG Initiatives

n Types of Quality Sought by Toyota Industries

Activities Based on the Quality Guidelines

Strategies andBusinesses

Carrying on the spirit of founder Sakichi Toyoda, Toyota
Industries strongly believes that quality is the lifeblood of acompany. Focusing on quality first and ensuring customer
safety and reassurance are our most important responsibilities
to our customers and form the basis of our approach to CSR.
Toyota Industries strives to maintain and improve thetotal quality of our corporate activities, which encompasses
not only “product quality” but also “marketing quality” and“management quality.” “Product quality” is embodied in
the safety, eco-friendliness, durability, ease of use andworkmanship of our products, while “marketing quality” entails
excellent sales and service in addition to these attributes and“management quality” further enhances our overall corporate
image and brand strength in terms of all of these attributes.

design review (DR), which allows a product to proceed to thenext stage only when a responsible business division head
examines and approves whether the product has reached thetarget quality level.

Company Introduction“A product should never be sold unlessit has been carefully manufactured andfully tested in the commercial trial, withcompletely satisfactory results.”“We should express our gratitude to ourcustomers by providing them our best
quality products.”
Under our “Customer First” philosophy, Toyota Industries
undertakes product development that meets customer
expectations by capturing market needs and understanding
how our products are actually used by customers.
At Toyota Industries, development of a new product entails
defining specific goals to incorporate quality in every stage
from product planning and design to production preparation,
production, sales and after-sales services. We perform a
Genchi genbutsu inspection by the president49

Relationship with
Our Stakeholders

way, we are working to create a corporate culture that values
the 3Gs: genchi (actual site), genbutsu (actual thing) andgenjitsu (reality).
*1: As of March 31, 2018n Quality Assurance Activities Based on the Quality Guidelines
Implementing
Company-wide
guidelines

Checking and identifying issues ofCompany-wide quality status and progressin implementing the guidelines
Quality Functional
Meeting

Genchi genbutsu
inspections by
the president

Company-wide Council of Heads of
Quality Assurance Departments

Quality Vision 2020
•Quality roadmap
A

P

PDCA*2cycle D

Quality Guidelines

C

Quality Guideline 1
Product development

Quality Guideline 2
Prevention of occurrence
and recurrence

Quality Guideline 3
Quality assurance atbusiness partners

Quality Guideline 4
Human resources
development

Toyota Industries provides systematic quality education to
all employees to help them acquire quality assurance skills
needed in actual operations. To nurture human resources
who think and act on their own and create a better workplacethrough all-employee kaizen activities, we are encouraging
employees to use their creativity and ingenuity to propose
kaizen ideas and promoting quality control (QC) circle
activities.
To date, we have received 13 awards for employees’
creative ideas in the Creativity category in the Commendationfor Science and Technology by Japan’s Minister of Education,
Culture, Sports, Science and Technology. We have alsopresented the results of our QC circle activities at QC circle
conventions both internally and externally and received
multiple awards for our accomplishments.

TOPIC*2: PDCA (Plan, Do, Check, Act)

Since improving the quality of our products requires concerted
efforts with our business partners in and outside Japan, weare strengthening joint quality assurance activities with major
business partners.
In each annual quality audit, we determine priority
areas, confirm the improvement status of the previously
identified deficiencies and provide quality education on
items that should be reinforced in order to cultivate a deeper
understanding of kaizen (improvement).
In fiscal 2018, we held quality control training sessions
for the genchi genbutsu sharing of best practices ofquality control activities as part of efforts to attain mutual
improvement of each business partner’s quality control
personnel.
These activities enable our business partners to attain thelevel of quality assurance required and establish a culture tofoster quality assurance on their own.

We provide fair and equal opportunities to all potential
business partners. We comprehensively evaluate our business
partners based on such factors as quality, price, adherence
to delivery times, technological capabilities and management
information. We also assess their initiatives for safety, theenvironment and compliance as we strive for the timely andstable procurement of excellent products at lower costs
based on fair business transactions.

Co-Existence and Co-Prosperity Basedon Mutual Trust
We work hard to realize co-existence and co-prosperity withour business partners based on mutual trust. Every year, wehold procurement policy meetings and top manager seminars
for major business partners to facilitate mutual understanding
and cooperation. In addition, we provide such programs as
quality management and technical skills training, guidance
directed toward kaizen at their production sites and safety andhealth education throughout the year.

Reducing Environmental Impact throughEnvironmentally Preferable Purchasing
We aim to procure parts, raw materials
and equipment from business partners
that give sufficient consideration to theenvironment.
In the sixth edition of ourEnvironmentally Preferable Purchasing
Guidelines, we added the aspirationsin 2050 of our Environmental Vision.
Accordingly, we have been strengthening
environmental management in our entire
Environmentally Preferable
Purchasing Guidelines
supply chain and undertaking relevant
initiatives throughout the product lifecycle. In fiscal 2018,
we also added to the list of substances managed under
the Environmental Management Information System (EMIS)
descriptions of laws and regulations serving as a legal basis
and the impact on health to clearly highlight the importance of
paying attention to the environment.

Local Procurement for Good Corporate
Citizenship
In view of increased local production outside Japan, we
promote procurement from local business partners throughconsolidated subsidiaries in order to contribute to the local
community as a good corporate citizen.

Promoting Human Resources Development
We proactively provide education to enhance procurement
knowledge both internally and externally. In fiscal 2018, we
Global QC Circle Convention

50

Toyota Industries Report 2018n Participants of Japan’s
provided training on Japan’s
Subcontracting Law Seminar
Subcontracting Law mainly
Affiliated companies
for affiliated companies,(Persons)
Toyota Industries
1,200
with seminars attended
1,000
by 300 participants. We
also work with Hoeikai, an
800
organization consisting of our600
business partners, to provide
400
support to strengthen the
200
management platforms of0
member companies through(FY) 14 15 16 17 18
Toyota Production System(TPS) activities in manufacturing and QC circle activities.

Efforts toward Future-Oriented Trade
Practices
To realize fair trade and improve added value across the entire
supply chain, Toyota Industries and its affiliated companies
totally switched to pay in cash to subcontracting business
partners in fiscal 2018. We held a briefing in May 2017 to
explain the change to our major business partners. The
scope of our business partner hotline that was established
to receive inquiries fromour business partners,
namely Hoeikai members,
was also extended to othercompanies. Through these
efforts, we have been
making steady progress
toward becoming a“company on which society
Business partner briefing
places greater trust.”

Business Continuity Plan (BCP) Activities
for Possible Major Earthquake
In further promoting our BCP activities, we are making
concerted efforts with business partners to reduce associatedrisks by implementing specific measures. As one example,
we provided production restoration workshops (tabletop
exercises) again in fiscal 2018 mainly to our affiliatedcompanies and Hoeikai members. Designed to identify issues
in advance, the workshops were effective in formulatingproduction restoration measures corresponding to each site
and its current status.
In response to a growing
need for quick identificationof damage in disasters
other than earthquakes,
we will add wind andflood disasters, fires andexplosions to the scope of
our BCP activities.

Financial Section /Corporate Information

Providing Support to Business Partners

Our production bases outside Japan also promote kaizen
efforts and human resources development through QC circle
activities. We help them undertake activities corresponding totheir respective environments by training QC circle instructors
and visiting them to give hands-on instructions for promoting
QC circle activities. As a venue for presenting activity results,
we hold the Global QC Circle Convention every year since2015 and provide workshop sessions to raise skills. We haveheld a regional convention in China for two consecutive years
and plan to expand regional activities in the future.
To reinforce our foundation for quality assurance, we arepromoting the development of human resources and an open
workplace based on the belief that manufacturing starts withnurturing excellent personnel.

Fair Business Transactions Based on an
Open Door Policy

Promotion of
ESG Initiatives

If a defect is found in a product after its launch, the Quality
Assurance Department of the responsible businessdivision takes the lead in swiftly implementing required
countermeasures. At the same time, we examine and identify
the cause of the defect both from the technological andprocess aspects and revise our new product development
process as necessary. Through these measures, we strive tothoroughly avoid the recurrence of the defect in subsequentmodels.
Additionally, we make efforts to prevent the occurrenceof defects in all products we develop and manufacture in
the future. As an example, we provide education not only
to employees of Toyota Industries but also to our business
partners and affiliated companies in and outside Japan withan eye to preventing defects by improving work proceduresand processes.

Toyota Industries encourages open procurement and seeks co-existence and co-prosperity with our business partners(suppliers) based on mutual trust. We also facilitate environmentally preferable purchasing, local procurement, humanresources development, fair trade and disaster prevention activities for a possible major earthquake.

Strategies andBusinesses

Preventing Occurrence and Recurrence ofDefects

Two QC circles of theCompressor Division wererecognized for their contribution
to more active and better QC
Award ceremony of the QC Circle
Kaoru Ishikawa Award program
circle activities and received
an encouragement award under the QC Circle Kaoru
Ishikawa Award program run by the Union of Japanese
Scientists and Engineers. This is one of the mostpremier awards given only to some 40 out of more than
50,000 circles in Japan every year, and it was the firsttime that Toyota Industries received two awards in thesame year. We have also received a gold prize in the
final round of the competition held in the Tokai Regional
Chapter. As seen above, our activities have beenyielding positive outcomes.

Relationship with Our Business Partners

Company Introduction

Quality assurance activities atall bases in and outside Japan

Promoting Human Resources andWorkplace Development

Production restoration workshop

51

Relationship with
Our Stakeholders

Relationship with Our Shareholders and Investors

Relationship with Our Associates

We aim to obtain an appropriate company valuation in stock markets through timely and appropriate information disclosure
while promoting good communications with shareholders and investors.

Our ultimate goal is to create safe and secure workplaces for everyone, where each and every associate can exercise theirdiverse potentials and play active roles.

Basic Perspective

Building a Safety-Oriented Culture That
Aims for Zero Industrial Accidents

General Shareholders’ Meeting(Persons)
136th

137th

138th

139th

Shareholders’ meeting

396

348

418

475

501

Plant tour

185

144

163

198

208

Investor Relations Activities
For institutional investors and securities analysts, ourmanagement conducts quarterly briefing sessions to explain
our financial results, including business performance, progressachieved at each business division and future initiatives.
In fiscal 2018, we conducted activities to help them better
understand the effect of the International Financial ReportingStandards (IFRS) on our business performance, which we
started applying from the end of fiscal 2017. In addition toaccepting individual interviews, we hosted an information
session for our Car Air-Conditioning Compressor Business.
The session provided an opportunity to appeal the business’s
strengths in terms of both development and production
aspects, as we explained our business policies, presented
development-related initiatives through a tour of an R&D
facility and showcased our way of monozukuri based on agenchi genbutsu approach.
As for institutional investors outside Japan, we visit someof them to explain our management policies and growth

52

Toyota Industries Report 2018

•Quarterly financial results briefings •Individual interviews/visits•Small meetings •Teleconferencing •Business information sessions•Facility tours •Issuing/delivering Toyota Industries Reports
For institutional investors outside Japan•Individual interviews/visits •Teleconferencing•Participation in conferences hosted by securities companies•Issuing/delivering Toyota Industries Reports
For individual shareholders and investors•Company information sessions •Company-hosted plant tours•Issuing/delivering notice of general shareholders’ meeting•Issuing/delivering business reports

Returning Profits to Shareholders
Toyota Industries regards ensuring shareholder benefits as
one of the most important management policies.
Accordingly, we strive to continue paying dividends atthe consolidated dividend payout ratio of roughly 30% andmeet the expectations of shareholders upon comprehensively
taking into consideration such factors as business results anddemand for funds.
For fiscal 2018, Toyota Industries increased annual cash
dividends by ¥25.0 over the previous fiscal year and paid
annual cash dividends per share of ¥150.0 (interim cash
dividend per share of ¥70.0 and year-end cash dividend pershare of ¥80.0).

Managers and supervisors observing safety culture activities and work procedures at other plants

As basic safety culture activities, we encourage point-andcall practices within plants to check safety, instruct associates
to use hand rails when going up or down stairs and let
associates remind each other to mutually raise awareness.
Through these activities, we have increased opportunities tohold safety dialogues within Toyota Industries, thus making
steady progress toward zero industrial accidents.
In fiscal 2018, we continued to record no accidents
caused by production facilities. However, as there was

Financial Section /Corporate Information

135th

For institutional investors and securities analysts in Japan

Promotion of
ESG Initiatives

n Number of Participantsn Major IR Activities

In accordance with our fundamental policy of “creating people
capable of autonomously maintaining occupational safety
and health,” Toyota Industries strives to prevent industrial
accidents and occupational disorders as well as realize better
work environments.
In fiscal 2018, we continued to promote primarily “activities
aimed at establishing a safety-oriented culture” and “safetymeasures from human, object and administrative standpoints
based on risk assessment.”
For a safety culture to firmly take hold, it is vital that
all associates, under the leadership of managers andsupervisors, engage in relevant activities with strong safety
awareness and a conviction that we can eliminate industrial
accidents. It is equally important that individual workplaces
identify their specific health and safety issues and voluntarily
plan, execute and sustain their own activities to reduce
industrial accidents.
For managers and supervisors, we provide an opportunity
to observe the workplaces of other plants to learn fromothers’ creative ideas in safety and health activities and raiseawareness. They in turn apply the insight to improve safety
activities in their own workplaces.

an accident involving injuries while walking, we recorded
the frequency rate of lost workday injuries of 0.03. We willcontinue to expand unfaltering safety initiatives to achieve
zero industrial accidents and raise the level of our mutual
enlightenment-based safety culture, in which associates
voluntarily remind each other.
Following an industrial accident at another company in2016, which involved an explosion in a heating furnace thatuses combustible gas, we conducted inspections on gasfired equipment used within the Toyota Industries Group.
Specifically, we performed checks on automatic ventilation at
the time of ignition, devices used to monitor individual gasfired equipment, operation of the dual automatic gas shutoff valves and the contents of operational manuals. As wemust rely on human eyes to check incomplete combustion
in a high-temperature furnace, we have started joint R&D
of a gas detector with a manufacturer. We are conducting
research on the effects ofhigh-temperature gas, dusts
and chemical substances on
the gas detector, which iscurrently in its trial stage. We
will continue to seek improved
safety measures that leverage
On-site inspection of detection performancethe latest safety technology.
Overseas, we continue to hold a health and safety regional
meeting, which was started in fiscal 2016, at bases in Europe
and North America. At the meetings, these bases work jointly
to facilitate an understanding of how to apply cause analysis
methods to prevent a recurrence of an industrial accident
and how to ensure safety in logistics operations while using
vehicles within a plant.
We aim to maximize the effectiveness of our recurrence
prevention measures by creating a manual to be shared
among the bases, which compiles the cause analysis results

Strategies andBusinesses

We hold our annual general shareholders’ meeting early
to avoid the date on which many companies hold theirrespective shareholders’ meetings so that more shareholders
can attend. We are further facilitating the exercise of voting
rights of our shareholders by allowing them to exercise suchrights via the Internet and by joining the electronic voting
platform for institutional investors.
We held our 139th General Shareholders’ Meeting on
June 9, 2017, in which a record-high 501 shareholders
participated. Following the general shareholders’ meeting, we
invited our shareholders for a tour of a plant that manufactures
our mainstay lift trucks to foster a better understanding of ourbusiness activities.

strategies. We also participate in conferences hosted in Japanby securities companies and hold individual meetings.
For individual investors, we hold company information
sessions mainly in regions in Japan where our bases arelocated to promote an understanding of our businessand management policies. Our Website also provides our
corporate history, overviews and technologies of eachbusiness as well as financial results in an easy-to-understandmanner.
Opinions and requests wecollect through various meansof communications withshareholders and investors
are fed back to executives
and relevant businessinformation session for thedivisions to reflect them in our Company-hosted
Car Air-Conditioning Compressor Businessand tour of an R&D facility (December 2017)
future business activities.

Company Introduction

Toyota Industries continually carries out timely, appropriate
and fair information disclosure for shareholders and investors.
In this way, we raise management transparency so that we
obtain an appropriate company valuation in stock markets.
We proactively provide not only information required under
disclosure laws and regulations but also information on ourmanagement policy and business activities. Also, we engage
in various investor relations activities to facilitate productive
dialogue with shareholders and investors.

n Frequency Rate of Lost Workday Injuries
(%)
1.60

Health and safety regional meeting at a base in Europe

1.20

Manufacturing industry

0.80

Manufacturers of transportation
machinery and equipment

0.40
0.00

Toyota Industries
(FY)

14

15

16

17

18

Good

(Source: Survey on Industrial Accidents, Japan’s Ministry of Health, Labour and Welfare)

Health and safety regional meeting at a base in North America

53

Relationship with
Our Stakeholders

for and measures taken in response to the past industrial
accidents.
We will continue to reinforce ties among bases within
Japan and among bases in each region, with the ultimate goalof establishing a health and safety culture at the highest levelin respective regions.

with a doctor for those wishing to do so and provided
improvement support as necessary to individual workplaces.
As a new initiative and as a means to feed back the results
to workplaces, we started operating an IT-based workplacecheck results viewing system that allows the users to performa precise search of results and tips for improvement.

Initiatives for Health Management andImprovementn Improving Mental Health Support Systems(Introducing a Stress Check System)

Participants of age-based health education(2,445 persons)

Stop smoking enlightenment events•World No Tobacco Day: One-day no smoking (May 31)•No Smoking Days: Half-day no smoking (for nine days)
Participants of stop smoking campaigns (held jointly with healthinsurance association)(12 persons)Age-based health education

As part of mental health support activities, we have inplace a system to offer early consultation through a healthrelated hotline. Other activities include upgrading our selfcare/line-care education to prevent new cases of mental
health problems and operation of a return-to-work support
program for persons on long-term leave for prevention of
relapses. We have successfully achieved positive results
through these activities.
Under the stress check system introduced in fiscal
2017, we again conducted a check on all associates
in fiscal 2018. As in fiscal 2017, we fed back the check
results to all participants and workplaces with suggestions
for improvement. We also set up an individual interview

54

Toyota Industries Report 2018

Providing information on mental healthEarly
detection/
early
resolution

Mental health education

Preventive
measures

Improving support via the introduction of a stress check system
Encouraging associates toUnderstanding theRaising awareness of causes of stress in the
be more aware of theirhealth and offering advice health-related hotline workplace andon health improvement
improving working
measuresenvironments<Consultation system>
Interviews as• Industrial healthpart of healthstaff (in-house)
Workplace check
checks• External institutions
results viewing system

Preventing
relapses

Return-to-work support

For these efforts, Toyota Industries was recognizedin the large enterprise category (White 500) of the 2017
Certified Health and Productivity Management Organization
Recognition Program jointly promoted by Japan’s Ministryof Economy, Trade and Industry and the Nippon Kenko
Kaigi. We will continue to undertake activities to promote
both mental and physical health and create a workplace thatenables all associates to work actively.

Enhancing Team Strength
Toyota Industries believes that it is essential to enhance teamstrength so that each associate can work with vitality and theCompany can achieve sustainable growth.
We believe that team strength is made up of “technicalskills” that form the basis of manufacturing operations,“management skills”
to make maximum
Management Skills
Technical Skills
use of technical
TPS, QC, SQC, etc.
Expertise/skills/know-how
skills and a “spirit
Ability to identify andresolve issuesof harmony” that
Ability to merge multiple
Team Strength levels of skill
supports both. While
Leadership
further enhancing
To pursue improvements
our team strength,
thoroughly and continuously
we are striving toSpirit of Harmony
extend and hand
Teamwork
it down beyond all
Well-roundedhumanitybusiness domains,
generations andgeographic regions.
Technical Skills
To develop skills to support manufacturing, the Technical
Learning Center, one of our training facilities, plays the central
role in associate education, offering basic skills training at theTechnical Training School and facilitating efforts to enhance
the skills of young technical staff through in-house skills
contests. We also work to cultivate highly skilled specialists
through participation in the national and international skills
competitions.

*1: Skills competition for determining Japan’s top
young engineers

at the 44th WorldSkills Competitionn Number of Medals Won at the National Skills Competition
FY2014FY2015FY2016FY2017FY2018

1

1

1

1

1

Gold medal
Silver medal

2

3

2

3

4

Bronze medal

3

1

3

1

1

Total

6

5

6

5

6

Management Skills
We conduct TICO Business Practices (TIBP) training targeting
associates in administrative and engineering fields, withthe aim of mutually sharing the thinking and values that
the Company gives importance to, as well as to improve
our associates’ problem-solving capabilities. TIBP training
programs are also provided at subsidiaries outside Japan in
our efforts to raise the level of management skills throughout
the Toyota Industries Group.
Spirit of Harmony
We are creating a bright, energetic and caring work
environment that fosters a dynamic workforce and allows
every member to demonstrate his or her capabilities both as
an individual and as a team. We are proactively encouraging
communication not only during work hours but also throughsocial gatherings, sports days, summer festivals, Group-wide
ekiden long-distance relay races and cheer squads for various
sports events.

Promoting Active Roles of Female Associates
We have been formulating plans to harness a more diverse
range of human resources and continuing to carry out
activities since 2008.
We have been working to enhance support systems
through such measures as introducing a shorter work-hoursystem for child care and a telecommuting system. As aresult, the average length of service increased overall inadministrative and engineering positions, with a significant risefor female associates. In addition, by introducing “a returnto-work (“welcome-back”) system,” which allows associates
who have left work to care for children and family members or
to accompany their spouse for a job transfer to get reinstatedunder certain preconditions, we provide an environment for
associates to work at Toyota Industries for longer years withpeace of mind.
In terms of measures to promote more active roles forfemale associates, we have set the target of increasing theratio of female graduate recruits to 40% in administrative
positions and 10% in engineering positions, and tripling thenumber of female associates in managerial positions by
the year 2020 compared with 2014, and intend to step up
activities to achieve our goal.
In 2015, we set up a project to promote more active roles
for female associates, comprising 11 males and females
from different departments. This project was key for theidentification of issues and formulation of policy proposals
in promoting the increased active roles of female associates
through discussions and exchanges among project members
and stakeholders. The results of these discussions formed
the basis for the development of a Company-wide action planin clarifying the initiatives for this project. In carrying out then Initiatives for Promoting Active Roles of Female Associates~ FY2010

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018Enhancing support systems•Extending the period of child care leave•Introducing a leave system to allow •Introducing a shorter work-hour system for child careparental care of children with illnesses•Establishing on-site day care center•Introducing a “welcome-back” system*2•Expanding telecommuting options•Introducing a telecommuting system •Installing delivery lockers

Cultivating corporate culture•Project for promoting active roles•Female associate exchange meetings•Pre-maternity leave seminars
of female associates
among 6 Toyota Group companies•Lectures by male role models•Message from president •Seminars for female associates inmanagerial positions•Opening a Diversity Navi page on the intranet•Holding exchange meetings and lectures to share experiences of female associates in balancing work and family

Increasing the ratio of female associates•Starting to recruit main career track female associates (for engineering positions in fiscal 1987
and administrative positions in fiscal 1997)

Financial Section /Corporate Information

Participants of walking events (held jointly with health insurance
association)(5,061 persons)Workplaces

Promotion of
ESG Initiatives

Persons having completed guidance program on prevention oflifestyle diseases(1,056 persons)Individuals

We are implementing a variety of measures to create work
environments where a diverse range of human resources canfully exercise their capabilities. These include promoting activeroles of female associates, supporting the employment of
persons with disabilities and creating an environment in which
older associates can work more actively.

Strategies andBusinessesn Major Health Promotion Activities in Fiscal 2018

Objective

Establishing Work Environments Where
Diverse Human Resources Can Play
Active Roles

Company Introduction

As a task for the medium term, we are promoting healthimprovement of associates, mainly focusing on preventionof lifestyle diseases and mental health support activities, tocounter risks associated with aging and greater stress.
For prevention of lifestyle diseases, we conduct periodic
age-based health education for all associates. We also feedback to associates the results of an annual health checkup
and measurements conducted on the same day, including
physical fitness, body fat percentage and amount of fat
around internal organs, along with advice to improve lifestyle
habits. Our health checkup is designed to provide motivation
for better health by letting associates think about their healthover the course of the one-day program.
For preventing and ameliorating symptoms of metabolic
syndrome, we provide health promotion guidance toassociates with mild obesity or who are slightly overweight, in
addition to specific health guidance required by the Japanese
government. By doing so, we encourage associates toimprove lifestyle habits early on.

At the 55th National Skills Competition*1 held in 2017, theToyota Industries team won one gold medal in the “structuralironsmith” category and received prizes in various othercategories, thereby attaining medals for the 17th consecutive
competition.
In addition, the Toyota
Industries team won a silver medalin the “welding” category at the44th WorldSkills Competition heldin Abu Dhabi, the United ArabEmirates, in 2017.
Junya Kasagi, who won a silver medal•Seminars for female students in science track•Increasing recruitment of female associates from non-engineering university departments

Cultivating career consciousness•Individual interviews with female assistant managers and their superiors•Formulating individual•Sending trainees •Training for career development for assistant managers
development plansoverseas

Setting targets for the number of female associates in managerial positions
Tripling the number of female associates in managerial positions by 2020
Toyota Industries [25 (2014); 31 (2017); 75 (target for 2020)]•“Eruboshi” certification*2: A system to enable reinstatement under certain preconditions

55

Relationship with
Our Stakeholders

n Action Plan

after returning to work; and a financial aid system for day
care costs adopted in April 2018 for associates working while
taking care of infants younger than one year old.
We are working to improve workplaces so as to offer
females a wider range of jobs and higher quality of work, andat the same time, to enable all associates working under time
constraints to fulfill their individual potential.
In January 2016, we were certified by the Aichi Labour
Bureau as a “Female-Friendly Company” and received“Eruboshi (“L Star”: L stands for Lady, Labour and Laudable)”certification from the Ministry of Health, Labour and Welfare in
October of the same year.
We will continue topromote activities aimed atcreating more active roles
for female associates.

Implementation
FY2016 FY2017

FY2018FY2019(1) Launch, message from president(Ongoing)

Refrigerated delivery lockers(1) Sending associates overseas for training
at an early stage in their careers(2) Career training and interviews forfemale assistant managers

Employment of Persons with Disabilities
We respect the idea of people with and without disabilities
working together and sharing life and work values. Under thisbasic policy, we continue to employ persons with disabilities
every year. They are assigned to a variety of sections andwork with other members to perform their designated tasks.
In fiscal 2018, the ratio of associates with disabilities on a
non-consolidated basis was 2.37%.

(1) Expanding telecommuting options(2) Establishing satellite offices(3) Installing refrigerated delivery lockers

n Average Service Years by Male and Female Associates(Administrative and Engineering Positions, Non-Consolidated)Male■ Ratio of Associates with Disabilities (Non-Consolidated)

Female(%)
2.4

Based on “Respect for Others” as described in
our Basic Philosophy, we strive to fulfill our role
as a good corporate citizen in every region where
we do business and actively engage in social
contribution activities to realize an enriched andhealthy society. In our activities that emphasizesocial welfare, youth development, environmental
protection and community contribution, we not
only provide cooperation and support throughpersonnel, facilities, funds and know-how but
also strive to closely connect with participants. To
foster employees’ awareness of their ties to society
and raise their interest in contributing to society,we make enlightenment efforts such as providing
a venue for volunteer activities and sharing
information on volunteer activities that encourage
the participation of all employees. Employee
associations* are actively undertaking various
activities to contribute to local communities, mainlyin the areas of supporting welfare facilities andprotecting the natural environment.
* Voluntary organizations formed by employees at each job level

Structure for Promoting Social
Contribution Activities
The CSR Committee deliberates on policies
of our social contribution activities while theSocial Contribution Group within the General
Administration Department at the Head Office takes
the initiative in carrying out activities.

Theme

Activities

SocialwelfareEvents to interact with persons with disabilities• “Walk Rally (orienteering),” harvest festival, festival
Support for welfare facilities• Support for charity bazaars at facilities by providing goods• Volunteer work for facility cleanup/repair/pruning/weeding• Support for sales of products from facilities for persons with disabilities by
providing opportunities to set up stalls• Volunteer visit to an elderly care facility (P57)
Donation to the American Cancer Society and participation in a walking
event (U.S.A.) (P58)
Providing livelihood support to care facilities for the elderly and persons
with mental and physical disabilities (India) (P58)
Providing food aid to economically challenged households during the Christmas
season (U.S.A.)

Support for Youth Invention Clubs•M onozukuri workshops for elementary school children during summer
vacations• Holding handmade kite-flying competitions• Running craft corners at local events
Youth
Providing plant-hosted environmental education to elementary school children
development
Holding mini concerts at elementary schools
Participating in a Company Open Day and holding a plant tour for young people(Germany) (P58)
Holding a painting and essay competition under the themes of “environmental
protection” and “health is wealth” (India)
Initiatives for forest conservation• Tree thinning activities for conservation of prefecture-owned forests
Environmental • Producing and donating benches made of thinned wood• Tree-planting activities for reforestation
protection
Conducting recycling activities for environmental protection (Argentina)(P58)

Community
contribution

2.3

15

2.2

10

Other

2.1

5

2.0

0

Mar. 31, ’98

Mar. 31, ’08

Mar. 31, ’180[Administrative position]

(FY)

14

15

16

17

(Persons)
40

(%)
50

(Persons)
150

(%)
40

40

30

30

30

100

20

20
20
10

50

10

10

0

0
(FY) 14

15

16

17

18

0

We focus on creating a better work environment for older
associates by adjusting the height of jigs in production lines
and modifying processes to compensate for deterioration ofvision so that they can work with less stress.
In addition, we hold “Seminars for an Active Life” forassociates reaching the age of 50 and 55 to give them an
opportunity to envision life and work for the next 10 years.

n Team Leader Associationn Number of Participants of Social
Contribution Activities of Employee
Associations

Social Welfare

Volunteer Visit to an Elderly Care Facility(Persons)

The Team Leader Association of the Hekinan Plant, comprising
young leaders of the manufacturing department, visited a local
elderly care facility and held a get-together event with elderly
people. Everyone enjoyed various recreation activities led by the
18 members of the association, including a flag game, a gameof passing a ball using a newspaper and singing songs withsome physical exercise.

1,500
1,000
500
0
(FY) 140(FY) 14

FemaleToyota Industries Report 2018

Holding charity concert
Support for international NGO through volunteer activities to collect spoiled
postcards and others
Periodic blood donation drives

Activity Example of Toyota Industries (Japan)

18

Creating a Work Environment for Older Associates[Engineering position]

Participation in local traditional event (Mando Festival)
Road cleanup activities in areas around plants
Activities to raise awareness for traffic safety
Crime prevention patrols
Providing support for activities such as local cleanup, garden maintenance andlandscaping (U.S.A.)
Conducting health checkups for mothers and babies and donating nutraceuticals(Indonesia)(Activities without country designation were conducted in Japan.)n Hiring of New Graduates (Non-Consolidated)

56

n Major Social Contribution Activities of Toyota Industries and Group Companies

15
Male

16

17

18

Ratio of females

Financial Section /Corporate Information(Years)20

Activities as a Good Corporate
Citizen

Promotion of
ESG Initiatives

Careersupport for(3) Role model exchange meetings
femaleassociates (4) Early return-to-work support(pre-maternity leave seminars)(5) Early return-to-work support(financial aid system for day care costs)
PromotingflexibleworkingpracticesPre-maternity leave seminar(Ongoing)

With a view toward creating an enriched and healthy society and ensuring its sustainable growth, we fulfill our role as a good
corporate citizen and actively undertake social contribution activities in every region where we do business.

Strategies andBusinesses

Changing
mindsets (2) Awareness seminar for managerial staff
amongmanagerial (3) Follow-up on individual development plans
staff and
(4) Getting spouses involved in pre-maternity
across allleave seminars
associates(5) Lectures by male role models

Relationship with Our Local Communities

Company Introduction

action plan, we specifically focus on the initiatives to change
the mindset among managerial staff and across all associates,
provide career support for female associates and promote
flexible working practices.
Since 2016, we have held a seminar for a cumulative totalof more than 1,200 managerial staff members who directly
engage in the mentoring and development of associates. The
aim is to promote an understanding of how female associates
regard their career paths as well as the environment in which
they are working and to raise awareness of human resources
development that takes into account their life events.
In order to create an environment to allow associates
who are balancing work and child/nursing care to workwith higher motivation and pursue career development, wehave enhanced our programs to support the early return
to work from a break in their career. Efforts include a fullday telecommuting system launched in October 2016;pre-maternity leave seminars started in December 2017 forassociates and their spouses to think about a way of working

A visit to an elderly care facility

15

16

17

18

Each employee association voluntarily and proactively
engages in social contribution activities, with the numberof participants remaining at a high level every year.

57

Relationship with
Our Stakeholders

Activity Examples of Consolidated Subsidiaries (Outside Japan)n U.S.A.

Social Welfare

Donation to the American Cancer Society and Participation in a Walking Event

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

The Raymond Corporation (Raymond)
Subsidiary producing warehouse trucks

Raymond’s employee volunteer team Ray of Hope raised donation funds through thesale of homemade bread and an in-house event called Jeans Day, and together withthe matching amount provided by The Raymond Foundation, donated a total of $3,725
to the American Cancer Society* to support its activities. Team members, pleased withthe outcome of their activities, participated in and livened up a PR walking event hosted
by the society.
Employees who participated in donation activities
for the American Cancer Society

Social Welfare

Toyota Material Handling India Pvt. Ltd. (TMHI)
Subsidiary engaging in sales and servicing of materials handling equipment

Global Environmental Commitment
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.
Aiming at realizing a prosperous life inharmony with the natural environment

An employee who participated in activities
to support a care facility

Low-carbon
emission society

TD Deutsche Klimakompressor GmbH (TDDK)
Subsidiary producing car air-conditioning compressors

Recycling-basedsociety

Environmental Management

Aspirations in 2050 and the Sixth
Environmental Action Plan
Plant tour held on Company Open Day

Environmental Protection

Toyota Material Handling Mercosur Indústria e Comércio de Equipamentos Ltda (TMHM-A)
Subsidiary engaging in sales and servicing of materials handling equipment

TMHM-A undertakes environmental protection activities every year under its
environmental management program. As one activity, TMHM-A provides recycling bins
to collect PET bottles and caps from employees. In fiscal 2018, TMHM-A sold about 80
kg of bottle caps collected and donated the proceeds through the All for Mia campaign
for the treatment of a girl in Argentina with an intractable disease.

An employee participating inrecycling activities

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.

(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

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

Conducting Recycling Activities for Environmental Protection

Toyota Industries Report 2018

Environmental risk
reduction
Society in harmony
with nature

Aspirations in 2050

Promotion of
ESG Initiatives

Youth Development

Participating in a Company Open Day and Holding a Plant Tour for Young People

58

P74

Strategies andBusinesses

TMHI donated blankets, wheel chairs, full electric medical beds and other items
to about 400 residents of a care facility for the elderly and persons with mental
and physical disabilities in northern India. Dealers in Bangalore, Chennai and Pune
also conducted social contribution activities locally by donating beds, sets of daily
necessities, large refrigerators and water purifiers to children living in care facilities for
persons with disabilities in addition to planting trees in the facilities’ gardens.

n Argentina

P68–69
P70–73We have defined our aspirations in 2050 and been promoting the Sixth Environmental Action Plan since fiscal 2017.

Providing Livelihood Support to Care Facilities for the Elderly and Persons with Mental and Physical Disabilities

TDDK joined a local Company Open Day and accepted many visitors to their facilities.
The event was part of an employment assistance program jointly hosted by an
occupational school and companies, and about 1,000 local children, students and theirfamilies learned about TDDK’s business by participating in a plant tour and sessions to
explain its products and technologies. The opening ceremony of the event was held at
TDDK, giving the guests, including the Prime Minister and mayors of Saxony as well as
corporate representatives, an opportunity to tour its plant and visit an area set up on
the company premises to showcase Japanese culture.

P61
P62–63
P64–65

P66–67

Vision for Environmental Activitiesn Indian Germany

P60

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

Company Introduction* An NPO established in the United States in 1913, primarily engaging in three activities of providing information, supporting patientsand cancer research

P5959