Toyota Industries Report

2021

Year ended March 31, 2021

Toyoda Precepts / Basic Philosophy
By engaging in value creation based on the Toyoda Precepts and basic philosophy, we aim to contribute to making theearth a better place to live, enrich lifestyles and promote a compassionate society.

Toyoda Precepts (Corporate Creed)
Always be faithful to your duties, thereby contributing to
the Company and to the overall good.
Always be studious and creative, striving to stay ahead of
the times.
Always be practical and avoid frivolousness.
Always strive to build a homelike atmosphere at work thatis warm and friendly.
Always have respect for God, and remember to be
grateful at all times.
We encapsulated the spirit of founder Sakichi Toyoda in the
Toyoda Precepts, which serve as Toyota Industries’ corporate
creed and upon which our Basic Philosophy is based.

Basic Philosophy[Respect for the Law]
Toyota Industries is determined to comply with the letter and spirit of the law, in Japan and overseas, and to be fair andtransparent in all its dealings.
[Respect for Others]
Toyota Industries is respectful of the people, culture, and traditions of each region and country in which it operates. It also works
to promote economic growth and prosperity in those regions and countries.
[Respect for the Natural Environment]
Through its corporate activities, Toyota Industries works to contribute to regional living conditions and social prosperity and also
strives to offer products and services that are clean, safe, and of high quality.
[Respect for Customers]
Toyota Industries conducts intensive product research and forward-looking development activities to create new value for its
customers.
[Respect for Employees]
Toyota Industries nurtures the inventiveness and other abilities of its employees. It seeks to create a climate of cooperation, sothat employees and the Company can realize their full potential.

Message from the Chairman and President

Tetsuro Toyoda
ChairmanFirstly, we would like to extend our sincere appreciation foryour continued support of Toyota Industries Corporationand the Toyota Industries Group.
In fiscal 2021 (ended March 31, 2021), the global
economy contracted sharply due to the spread of COVID19. However, the economy has begun to recovermoderately thanks to such factors as the improvement of
the Chinese economy and underlying economic policies inrespective countries.
We continued to carry out profit improvement activities
and proactively expanded sales by capturing business
opportunities presented by market recoveries. As a result,although sales and profits declined from the previous fiscal
year, both outperformed our full-year forecast.
Toyota Industries determined the year-end cash
dividend to be ¥80.0. Including the interim cash dividend,
we paid annual cash dividends per share of ¥150.0 asplanned. The same as last fiscal year, we decided to pay
the year-end cash dividend early based on a resolution by
the Board of Directors instead of basing our decision on
the resolution of the General Shareholders’ Meetings as we
usually do.
Turning to the surrounding business environment,changes are occurring at a dizzying speed in various
aspects, such as the transformation of people’s daily lives
prompted by greater use of online communications as wellas the gaining momentum for realizing a carbon neutral
society. In this climate, we aim for further growth bypromoting innovative technology and product developmentby proactively embracing digital technologies and open
innovation. At the same time, we will aim to further

Akira Onishi
President

enhance corporate value by adhering to such basics as
safety, health, quality and compliance as well bystrengthening the management platform and building aflexible and robust organization. To support such businessdevelopment, we will continue our efforts to create anorganization and workplace environment that enable
diverse human resources to fully demonstrate theirindividual abilities.
Through these initiatives, we aim for sustainable growthof each business while striving to support industries andsocial foundations around the world and contribute to
making the earth a better place to live, enriched lifestyles
and a compassionate society as described in Toyota
Industries’ Vision 2030.
In closing, we would like to sincerely ask for yourcontinued understanding and support.
July 2021

Tetsuro Toyoda
Chairman

Akira Onishi
President

1

CONTENTS
Toyoda Precepts / Basic Philosophy

Inside coverMessage from the Chairman and President

Company
Introduction

1

Contents

2–3

Value Creation Process

4–5

Contributing to SDGs through Business Activities

6–7

Business Overview

8–9

Consolidated Eleven-Year Summary

10–11

Top Message

12–17

Taking the Initiative for Growth – 1

18–21

Contributing to Logistics Efficiencies of Customers by Providing
Support throughout the Logistics Lifecycle

Strategies andBusinesses

Taking the Initiative for Growth – 2

22–25

Contributing Both in Terms of Product Development and Production
to the Establishment of a Carbon Neutral Society

Business Activities
Materials Handling Equipment
Automobile
Textile Machinery

Editorial
policyIn aiming to realize a deeper understanding of the Toyota Industries Group among a broad spectrum of stakeholders, the Annual Report
and Social and Environmental Report have been combined into the Toyota Industries Report from the fiscal year ended March 31, 2008.
In addition to the Toyota Industries Group’s management policies, the report provides easy-to-understand information regarding its
business, corporate governance, social and environmental activities over the past year as well as its future direction.

Period coveredby the report

This report focuses on activities carried out in fiscal 2021 (April 1, 2020 to March 31, 2021), but also includes some information outside
this period.

Organizations coveredin the report

Reference
guidelines

2

26–31
32–37
38

Toyota Industries Report 2021

Toyota Industries Corporation and its consolidated subsidiaries
•
•
•
•
•

Global Reporting Initiative (GRI) Standard
ISO 26000
Japan’s Ministry of the Environment Environmental Accounting Guidelines (2005 Version)
Japan’s Ministry of the Environment Environmental Reporting Guidelines (2018 Version)
International Integrated Reporting Framework by International Integrated Reporting Council (IIRC)

Corporate Governance

39–46

Corporate Governance Structure / Cross-Shareholdings /Internal Control System / Compliance / Information Security /Risk Management

Messages from Outside Directors

47

Relationship with Our Stakeholders

Promotion of
ESG Initiatives

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

48–49
50–51
51
52–57
58–59

Environmental Initiatives

Corporate
Information

Vision for Environmental Activities
Structure to Implement Environmental Management
Summary of the Sixth Environmental Action Plan
Seventh Environmental Action Plan
Establishing a Carbon Neutral Society
Establishing a Recycling-Based Society
Reducing Environmental Risk and Establishing a Society in Harmony
with Nature
Promoting Environmental Management

60
61
62–63
64–65
66–67
67–68
69

Board of Directors, Audit & Supervisory Board Members,
Senior Executive Officers and Executive Officers

72–73

Major Bases

74–75

70–71

Investor Information

Toyoda Industries Report 2021 PDF
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 How to use this report
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Click on
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76

Cautionary Statement with Respect to Forward-Looking Statements
This report contains projections and other forward-looking statements that involve risks and uncertainties. The use of
the words “expect,” “anticipate,” “estimate,” “forecast,” “plan” and similar expressions is intended to identify suchforward-looking statements. Projections and forward-looking statements are based on the current expectations andestimates of the Toyota Industries Group regarding its plans, outlook, strategies and results for the future. All suchprojections and forward-looking statements are based on management’s assumptions and beliefs derived from theinformation available at the time of producing this report and are not guarantees of future performance. Toyota
Industries undertakes no obligation to publicly update or revise any forward-looking statements in this report,
whether as a result of new information, future events or otherwise. Therefore, it is advised that you should not rely
solely upon these projections and forward-looking statements in making your investment decisions. You should also
be aware that certain risks and uncertainties could cause the actual results of Toyota Industries to differ materiallyfrom any projections or forward-looking statements discussed in this report. These risks and uncertainties include,
but are not limited to, the following: (1) reliance on certain customers, (2) product development capabilities,(3) intellectual property rights, (4) product defects, (5) price competition, (6) reliance on suppliers of raw materials andcomponents, (7) environmental regulations, (8) success or failure of strategic alliances with other companies,(9) exchange rate fluctuations, (10) share price fluctuations, (11) effects of disasters, power blackouts and otherincidents, (12) latent risks associated with international activities and (13) retirement benefit liabilities.

The fiscal year ended March 31, 2021 is referred to as fiscal 2021 and other fiscal years are referred to in acorresponding manner.

3

Value Creation Process
Based on our basic philosophy, we aim to contribute to making the earth a better place to live, enrich lifestyles andpromote a compassionate society by directly facing the changes and challenges surrounding society and by engaging
in value creation through making the most of the core assets and strengths we have accumulated to date in promoting
our diverse businesses.

Social Issues and Changes
Electrification / Climate change / Issues on energy, resources and water / Labor shortages and rising labor costs /Digitalization and online systematization / Work style diversification

Primary Capital and Strengths

Aspiration in the Medium to Long Term and CSR Materiality

INPUT Human Capital Human resources comprised of more than 60,000
employees possessing diverse strengths in respective
business fields
 Human resources development underlying sustainablegrowth Vision 2030
Contribute to making the earth a better place to live, enrich lifestyles, andpromote a compassionate society by supporting industrial and social
infrastructure around the world through the continuous supply of
products/services that anticipate customers’ needs.

 Product Development Capability / Intellectual
Capital Strengthening development capability andcompetitiveness through collaboration between the
Materials Handling Equipment and Automobile-related
businesses Accumulation of knowledge thanks to involvement in the
production of automobiles spanning from vehicle
assembly to the development of key components
 Wide-ranging responsiveness and sustainable growthpotential stemming from technologies in thedevelopment of both engines and electrification
 Research and development by drawing on external
expertise Manufacturing Capability / Manufacturing
Capital World-leading quality and productivity based on the
Toyota Production System Globally stable production and supply capabilities ofrespective businesses

Link to details on
Vision 2030

 CSR Materiality
CSR Materiality

 Financial Capital Sound financial foundation
 High rating bestowed by rating agencies (fundprocurement capability) Global Network / Social and Relationship Capital Global sales and service networks for materials handlingequipment and other products
 Close collaboration with Toyota Group companies as well
as automakers and other manufacturers around theworld Business reinforcement and expansion through M&A
and other measures Solid supply chain built on mutual cooperation withbusiness partners

 Natural Capital

SDGs to Contribute Mitigation of Global Warming Contribution to Circular Economy
Resolving Social
Issues throughOur Business

Foundation
Supporting
Our Business
Operations

 Creation of Innovative Values Products and Services WhichContribute to Safety, Reliability andComfort Mutual Prosperity throughPartnerships with Local Communities Safe and Healthy Work Environments
 Leveraging Diversity and Inclusion
 Sustainable Procurement Compliance and Risk Management
Link to CSR
Materiality

 Air, water, energy, minerals, etc.

Toyoda Precepts
4

Toyota Industries Report 2021

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Value Creation Process

Business Results

Values and Joys for Stakeholders

OUTPUTOUTCOME Materials Handling Equipment

 Customers
Contributing to such needs as electrification, automation andenergy savings as well as safety and reliability throughhigh-quality products and services

Lift trucks and logistics
solutions that contribute to
greater logistics efficiency
for customers
 Automobile
Comfortable and appealing
automobiles

Fuel-efficient and clean engines

Car air-conditioning compressors thatrealize a comfortable vehicle interiorElectronics that contribute to theelectrification of automobiles, etc.

 Textile Machinery
Weaving and spinning machinery to produce fabrics
and yarns of high quality and soft texture Business Partners
Co-existence and co-prosperity based on mutual trust
cultivated through open, fair and equitable business
relationships

 Shareholders and Investors
Returning profits to shareholders and investors by enhancing
corporate value through sustainable growth Employees
Developing employees’ work values and motivating them todemonstrate their potential by creating safe and secure
workplaces for diverse human resources Local Communities
Contributing to the prosperity of each country and local
community through promoting social welfare, youth
development, environmental protection, community
contribution and other activities
 Global Environment
Contributing to reducing CO2 emissions, mitigating resource
depletion and curtailing environmental risks by promoting
environmental management

Basic Philosophy
5

Contributing to SDGs throughBusiness Activities
Under the Toyoda Precepts (corporate creed), Toyota Industries has been undertaking abroad range of businesses by upholding the philosophy of contributing to society since its
founding. In keeping with recent changes in the business environment, we have clarified
which social issues we should tackle as our CSR material issues, and will work for the
resolution of these issues.
CSR Materiality

 Mitigation of Global Warming Contribution to Circular Economy
SDGs to Contribute

Contribution to Vision 2030
(Aspiration)
Clean/zero emissions:
Mitigating global warming and achieving
a circular economy through suchinitiatives as reducing CO2 emissions
and waste in our business activities andexpanding the lineup of environmentallyfriendly products in our efforts tocontribute to maintaining and improving
the global environment over the long run

Link todetails

Action Policies

 Reducing CO2 emissions from production activities Reducing CO2 emissions from production-related
logistics
 Reducing CO2 emissions through product andtechnology development
 Effective resource utilization in production activities

 Implementing initiatives to promote 3R (reduce, reuse
and recycle) design for effective resource utilization

ResolvingSocialIssuesthrough Our
Business

 Creation of Innovative Values
SDGs to Contribute Products and Services WhichContribute to Safety, Reliability
and Comfort
 Mutual Prosperity throughPartnerships with Local
Communities

Creation of innovative value, smart:
Contributing to achieving a “smart”
society and more enriched lifestyles
by resolving social issues throughtechnological advancement andinnovation that create new values Promoting development of new technologies thatcreate new values

Safe/reliable, comfortable:
Contributing to creating a compassionate
society by offering products and services
that anticipate the needs of customers
and various stakeholders and that aresafe, reliable and comfortable to use
while fulfilling our responsibilities as amember of society to thrive together

 Enhancing electrification-related products andservices that are highly functional, ecologically soundand adaptable as social infrastructure

SDGs to Contribute6

Toyota Industries Report 2021

 Compliance and Risk
Management

 Continuously promoting grassroots activities in local
communities and thrive together as a member ofsociety Creating the environment for everyone to get a fairshare of opportunity to develop and demonstrate theirpotential

 Leveraging Diversity andInclusion Sustainable Procurement

 Offering high-quality and safe products and services
and maintaining and improving the structure to realize
this goal Fostering safe and healthy workplaces for everyone

 Safe and Healthy Work
Environments
Foundation
Supporting
Our
Business
Operations

 Improving core technologies and utilizing the
new knowledge of business partners to enter
into peripheral fields of existing businesses whiledeveloping and offering technologies and products innew business fields

 Establishing the foundation to remain a company thatis trusted and needed by society—Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Contributing to SDGs throughBusiness Activities

Process to Determine CSR Materiality
Identifying, among various social issues, the ones
relevant to our business activities based on the United
Nations’ 17 Sustainable Development Goals (SDGs)
and 169 targets as well as guidelines[Items we refer to]1) 17 SDGs and 169 targets
2) Important ESG items

Validation of Adequacy

Assessment of Importance
Assessing the importance of the identified issues from both internal andexternal viewpoints to select those having higher degrees of importance[Assessment method]1) Conducting questionnaires anddiscussions with relevant internal
departments
2) Plotting onto a 2 x 2 materiality matrix
to select issues having higher degrees
of importanceImportance whenviewed from outside

Identification of Issues Relevant to
Toyota Industries

Conducting reviews by both
our top management andoutside experts to receive
feedback and confirm theadequacy of the selectedissuesApproval by
Top Management
Gaining approval of the CSR
Committee chaired by thepresident and comprising our top
management based on thevalidation results

Importance for Toyota Industries

Action Targets and Activities Reduce production-derived CO2 emissions
Total emissions

Targets(FY toachieve)

Results for
FY2021Page
numberTargets for
FY2022–25%*(2026)–28%

P. 66–67—

15％(2026)

6%

P. 66–67—–11%(2026)–8%

P. 66–67——

P. 66–67—–22%

P. 67–68

—

—

P. 68

—

—

P. 67–68

—

57.6%
—
—

—
—
—

(vs FY14 level) Adopt renewable energy sources
Introduction rate Reduce logistics-derived CO2 emissions
Emission volume per unit of production (non-consolidated)(vs FY14 level) Develop technologies that contribute to an even greater level of energy efficiency
 Reduce waste generation volume
Emission volume per unit of production (non-consolidated)［参考にした項目］① SDGs（17ゴール、169ターゲット） Promote water conservation activities corresponding to the water situations in each
② ESGの重要項目–12%(vs FY14 level)(2026)

country and region

 Reduce use of resources and promote reuse and recycling of resources Ratio of R&D expenses for electrification and automation
 Expand peripheral fields and new business fields Net sales

70%¥1trillion

Over
Over

(2031)(2031)Develop new technologies and products that contribute to resolving environmental and social issues

60%
—

Over

—

Twofold(100%)(2031)——

70%(2031)

43%

—

45%

Offer highly efficient and energy-saving electric compressors that are excellent in terms of quiet
operation and comfort (Automobile Business)—

P. 35–36—

Offer clean and high-quality fuel cell units and on-board batteries (Automobile and Materials Handling
Equipment businesses)

—

—

—

—

P. 37

—

Develop new technologies and products for logistics automation and expand sales(Materials Handling Equipment)
Sales of automation products (growth rate) Expand sales of electrification-related products (all businesses)
Ratio of electrification-related products to net sales(vs FY2021)
Over

Offer power source-related products, on-board or otherwise, that can also be used as social infrastructure during
disasters and other occasions (Automobile Business)(2031)
100%
 Conduct product risk assessment (target products) Implementation rate (non-consolidated) Promote quality education Training participation rate (non-consolidated)

100%(2031)

 Promote social contribution activities
Expenditure/number of participantsContribute to biodiversity conservation of local communities
Promote other community contribution activities Eliminate serious accidents Number of serious accidents
Frequency rate of lost workday injuries (non-consolidated) Utilize diverse human resources
Ratio of female managers (non-consolidated)
Ratio of employees with disabilities (non-consolidated)

00.00(2031)

3.6%(2031)

1.6%

P. 53–54

2.30%(2031)

2.40%

P. 54

Over

(2031)

 Maintain sound transactions and strengthen structure throughout the supply chain
Implementation rate of CSR checks on target suppliers (non-consolidated) Eliminate serious compliance violations Number of violations

100%(2031)

0(2031)

100%(955 companies)00(2031)—
0 Promote risk management activities taking a risk-based approach
Improve BCP effectivenessRespond to cybersecurity risks Number of serious incidents

P. 48–49
100%
P. 49
100%
¥840 million/
P. 59
18,224 persons
P. 69
—
P.
58–59
—
P. 56
2
P. 56
0.09

P. 50
P. 43
P. 45–46
P. 45

Up

10%

100%
100%
—
—
—
0
0.00
—
Over

2.30%

100%
(950 companies)
0—0* As a more ambitious target, we are aiming for a 50% reduction by fiscal 2031 from the fiscal 2014 level.

7

Business Overview
Using our resources and strengths as the foundation, we strive for growth in the Materials
Handling Equipment, Automobile and Textile Machinery businesses. At the same time,
we aim to enhance our competitiveness by leveraging synergies among these businesses.

Link toproduct
details

Materials Handling Equipment
Lift Truck

Logistics Solutions

Toyota Industries plans, develops,
produces, sells and provides
after-sales services for industrial
vehicles centered around lift trucks,
which capture the top global market
share*. Together with sales
financing and proposals for logistics
efficiencies, we strive to meet avariety of customer needs.

Toyota Industries works closely with subsidiaries Bastian Solutions LLC
and Vanderlande Industries Holding B.V. by leveraging each company’s
strengths to contribute to resolving customers’ logistics issues througha combination of various logistics equipment and systems.

High-speed storage
and picking system

Electric lift truck

Airport baggage handlingsystemAutomobile
VehicleEngineWith its strengths as a leader in safety, the environment, quality,
cost and delivery among Toyota Group companies, the Vehicle
Business plans, develops and produces the RAV4 for markets inand outside Japan.

In addition to automotive diesel engines produced under astructure ranging from planning and development to production,
we also produce gasoline engines and industrial engines.

RAV4

Gasoline engine
for hybrid vehicles

Diesel engine

Car Air-Conditioning Compressor

Electronics

Toyota Industries’ car air-conditioning
compressors are highly acclaimed interms of their reliability at high operating
speeds and quiet operation in addition tosuch excellent environmental
performance features as compactness,light weight and fuel efficiency. The Car
Air-Conditioning Compressor Business
captures the world-leading market sharein unit sales*.

The Electronics Business plans, develops and produces a wide
variety of electronics products for electrified vehicles such as hybrid
vehicles.
Electric compressor

Oxygen-supplying
air compressor forfuel cell vehicles

DC-DC converter

On-board charger

Textile Machinery
Textile MachineryWe undertake fully integrated operations
from planning, development andproduction to sales and after-sales
services for spinning machines that spin
twisted fiber bundles into yarn andweaving machines that weave spun yarn
into fabrics. Our air-jet looms havecaptured the world-leading market sharein terms of unit sales*.

Air-jet loom

Ring spinning frame* Survey by Toyota Industries Corporation

8

Toyota Industries Report 2021

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Overview

Net Sales(¥ Billion)

Net Sales

2,500
2,214.9

2,171.3

2,118.3

2019

2020

2021

Operating
Profit(¥ Billion)

2,000

2,118.3 billion

¥

1,500

FY2021
1,000
500
0
(FY)

68% Materials Handling Equipment ¥1,431.4 billion¥591.6 billion
28% Automobile¥40.8 billion
2% Textile Machinery

Materials
Handling
Equipment

Automobile

Textile Machinery

The lift truck market grew in China but
shrank in other countries and regions, andToyota Industries’ unit sales decreased
from the previous fiscal year. Meanwhile,
sales of the Logistics Solutions Businessincreased in step with an expansion of the
e-commerce market. As a result, net sales
were on par with the previous fiscal year at¥1,431.4 billion.

The automobile market as a wholecontracted despite a recovery trend in
China. Amid this climate, although sales of
the RAV4 were on par with the previous
fiscal year, sales of engines and car
air-conditioning compressors decreased.
As a result, net sales totaled ¥591.6 billion,
down ¥22.2 billion, or 4%.

Amid difficult market conditions overall,
net sales amounted to ¥40.8 billion, down
¥20.9 billion, or 34%, as a result of
decreases in sales of weaving machinesand quality measurement instruments forfiber, yarn and fabric.

Net Sales(¥ Billion)

1,500
1,200
900

40
20

300
(FY) 19

Net Sales

20

0

21

(FY) 19

Operating
Profit(¥ Billion)

600

200

10

20

80
60

20

21

20

21

(¥ Billion)

8
6
4

40

2

20
(FY) 19(FY) 19

Operating
Profit(Loss)(¥ Billion)

0

0

21

21

30
20

(FY) 1920(¥ Billion)

400

0

Net Sales

100
80
60

600
0

120

0

20

21

-2

(FY) 199

Consolidated Eleven-Year Summary
Link todetails

Toyota Industries Corporation
Years ended March 31

International Financial Reporting
2021

2020

For the YearNet sales

2,118,302

2,171,355

Operating profit

118,159

128,233

Profit before income taxes*1

184,011

196,288

Profit*2

136,700

145,881

Investments in tangible assets*3

113,361

106,058

Depreciation*3

91,09790,488

Research and development expenses

88,90090,560Basic440.28469.85

Diluted

——10,422.64

7,854.87

150.00160.00Total assets

6,503,986

5,279,653

Share of equity attributable to owners of the parent

3,236,038

2,438,807

Per share of common stock (yen):
Earnings per share*2, *4

Share of equity attributable to owners of the parent
Cash dividends per share
At year-end

Capital stock

80,46280,462

Number of shares outstanding (excluding treasury stock) (thousands)

310,481

310,483

Net cash provided by operating activities

382,386

313,199

Net cash used in investing activities(404,164)(182,598)

Net cash provided by (used in) financing activities(105,477)(7,094)

Cash and cash equivalents at end of year

238,248

358,144

Cash flows

Indices
Operating profit ratio (%)

5.6

5.9

EBITDA (millions of yen)*5

326,851

336,415

Return on equity (ROE) (%)*6

4.8

5.9

Return on assets (ROA) (%)*7

2.3

2.8

D/E ratio (%)*8

41.6

54.9

Ratio of share of equity attributable to owners of the parent*9

49.8

46.2

66,947

66,478

Number of employees (persons)*1: The figures prior to fiscal 2017 are ordinary income under JGAAP.
*2: Profit attributable to owners of the parent*3: Investments in tangible assets and depreciation apply to property, plant and equipment. They do not include materials handling equipment leased
under operating leases.
*4: Earnings per share is computed on the average number of shares for each year.
*5: Profit before income taxes + Interest expenses – Interest and dividends income + Depreciation and amortization (including assets other than property,
plant and equipment)*6: Profit attributable to owners of the parent / Average share of equity attributable to owners of the parent at the beginning and the end of the
fiscal year
*7: Profit attributable to owners of the parent / Average total assets at the beginning and the end of the fiscal year
*8: Interest-bearing debt / (Share of equity attributable to owners of the parent – Subscription rights to shares)*9: (Share of equity attributable to owners of the parent – Subscription rights to shares) / Total assets
Notes: 1. Toyota Industries has adopted IFRS beginning from the end of fiscal 2017.
2. Operating profit in fiscal 2018 includes a one-time effect of ¥14.3 billion arising from changes in retirement benefit plans.

10

Toyota Industries Report 2021

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Consolidated Eleven-Year Summary

Millions of yen
Standards (IFRS)Generally Accepted Accounting Principles in Japan (JGAAP)

2019

2018

2017

2016

2015

2014

2013

2012

2011

2,214,946

2,003,973

1,675,148

2,243,220

2,166,661

2,007,856

1,615,244

1,543,352

1,479,839

134,684

147,445

127,345

134,712

117,574

107,691

77,09870,092

68,798202,225

209,827

181,986

185,398

170,827

138,133

86,83680,86673,911

152,748

168,180

131,398

183,036

115,263

91,705

53,11958,59447,205

113,748

115,458

77,39375,438126,395

109,479

89,45958,404

38,254

85,63977,73873,25377,36670,78264,153

57,954

59,83062,37288,807

77,647

69,52465,44047,78546,32639,05732,07027,788491.97541.67420.78582.58367.06292.76170.36188.02151.51———582.57366.99292.57170.35——

7,986.59

8,223.82

7,125.37

6,481.97

7,500.16

5,640.08

4,719.66

3,662.26

3,300.17

155.00150.00125.00120.00110.00

85.00

55.00

50.00

50.00

5,261,174

5,258,500

4,558,212

4,199,196

4,650,896

3,799,010

3,243,779

2,656,984

2,481,452

2,479,718

2,553,391

2,240,293

2,113,948

2,425,929

1,829,326

1,524,933

1,197,841

1,075,939

80,46280,46280,46280,46280,46280,46280,46280,46280,462

310,485

310,487

310,489314,226

314,155

313,730

312,207311,687

311,564

270,306

268,567

239,094

240,169

182,191

155,059

151,299

101,718

153,661(395,000)(340,324)(86,925)(531,561)(160,769)(118,483)(274,210)(9,403)(187,574)

40,467

153,303789

130,923(8,918)

6,183

7,050

10,279(85,728)

239,140

323,830

243,685

92,399248,706

226,406

179,359

296,811

195,566

6.1

7.4

7.6

6.0

5.4

5.4

4.8

4.5

4.6

323,998

313,055

276,193369,857

248,854

216,175

155,234

161,876

150,481

6.1

7.0

6.1

8.3

5.6

5.7

4.1

5.4

4.5

2.9

3.4

3.0

4.1

2.7

2.6

1.8

2.3

1.9

52.3

45.7

43.6

43.7

32.0

39.9

45.4

53.8

56.8

47.1

48.6

49.1

48.5

50.7

46.6

45.4

43.0

41.4

64,641

61,152

52,62351,45852,52349,33347,41243,51640,82511Strategies and Businesses
Steadily Carry Out Growth Strategies
by Leveraging the Strengths ofEach Business Field

Top Message

P. 12–17

Taking the Initiative for GrowthP. 18–25

1. Contributing to Logistics Efficiencies of Customers by Providing Support throughout the
Logistics Lifecycle
2. Contributing Both in Terms of Product Development and Production to the Establishment ofa Carbon Neutral Society

Business Activities

P. 26–38

Top Message

Seeking Further Growth in an
Environment of Lingering Uncertainty
by Building a Robust Corporate
Structure and Regarding Drastic Social
Changes as Growth Opportunities
This section presents Toyota Industries’ efforts
to overcome the COVID-19 pandemic andachieve further growth.

Akira Onishi President

12

Toyota Industries Report 2021

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Top Message

1. Review of Fiscal 2021
In fiscal 2021, COVID-19, which has become a global phenomenon,
repeated the cycle of expanding infections and winding down, and thisdifficult situation is likely to continue around the world with the exceptionof a few countries. I would like to take this opportunity to extend mycondolences to people who have lost their lives to the pandemic and wish
for an early recovery of those who are suffering from COVID-19.
Looking back over the past year, Toyota Industries was struck hardby the pandemic and fell into the red in the first quarter but succeededin getting on a track to recovery in and after the second quarter. I believe
this was made possible because we maintained our Group-wide profit
improvement activities that started from well before the pandemic andworked to resume business activities on a full-scale in keeping with arecovery in the market. Observing market trends and the post-COVID-19
world, we need to determine which initiatives to retain, accelerate or undo
and adapt to “new normal” work styles.

2. Medium-Term Growth Scenario

Operational test of a control system conducted
remotely at Vanderlande

Providing work instructions to overseas servicing staff
remotely from Japan in the Textile Machinery BusinessIn order to achieve growth over the medium term, it is essential to keep oureyes on changes in the market and make sure to seize growth opportunities.
Specifically, we regard two growth fields as having great potential. One
is the Materials Handling Equipment Business encompassing logistics
solutions to respond to changes in lifestyles, including more widespreaduse of e-commerce, and labor shortages. The other is responding toelectrification in the automobile and other sectors. In these two growthfields, we will accurately capture changes in customer needs, leverage ourstrengths and turn them into business opportunities. The following highlights
our major efforts in this regard.

Efforts in the Materials Handling Equipment Business
An increase in logistics volume is likely to continue with an expected
post-pandemic recovery of the world economy and an expansion of
e-commerce. In the logistics industry, labor shortages and a rise in laborcosts are driving an increase in needs for mechanization and automation oflogistics operations. These trends are expected to accelerate further, as new
lifestyles and social distancing practices will become more prevalent as aresult of COVID-19.
Under these circumstances, lift trucks and logistics solutions will playincreasingly important roles. Demand for lift trucks is expected to remainstrong due to their versatility. Along with expanding sales further, we will aim
to contribute to customers throughout our entire value chain, including

13

after-sales services. As for a
Toyota Industries’ Products Used at Various Logistics Sites
rise in needs for even greater
Automated storage
and retrieval
efficiencies in distribution
systemSeaportcenters, which has been
High-speed
storage anddriven by an expansion
pickingsystemManufacturing sitesof e-commerce, three
Simple AGV
companies in the Logistics
Distribution center
CROSSBELT
Solutions Business, namely
SORTERAGV for containers
Large internal- Truck loader/
Bastian, Vanderlande andcombustion
unloaderlift truck
Toyota Industries, arecollaborating to bolster
Autonomous
baggagebusiness. The effort ishandling system
beginning to bear fruit asElectric low lift truck
evidenced by an increase
Airportin new orders in recent
years. As one example ofthis collaboration, a system
Electric
Airport baggage
Electric lift truck
Fuel cell lift truck
Reach-type
towing tractor
handling systemelectric lift truckof Vanderlande has been
adopted in a state-of-the-art
distribution center established in Japan by a leading international logistics
and parcel service operator.
We will make an accurate response to a broad range of customer
needs by leveraging a wealth of know-how accumulated in dealing withcustomers worldwide as the top player in the lift truck market as well as
synergies with logistics solutions.
In the Lift Truck Business, there has been a delay in acquiring
A system of Vanderlande introduced in Japancertification from the environmental authority in the United States for engines
to be fitted in certain models of internal-combustion lift trucks manufactured
at a plant in the country (as of June 30, 2021). In 2021, we suspended their
shipment and production in January and June, respectively. We offer oursincere apologies for the inconvenience and concern we have caused toour stakeholders. We are making our utmost efforts to resume shipment,
including providing relevant information to the authority, and appreciate yourunderstanding regarding the matter.

Responding to Electrification
In the future, electrification is expected to gain momentum in a variety offields due to the enforcement of more stringent fuel efficiency regulations
and growing energy-saving awareness among customers. Amid thisenvironment, Toyota Industries will make maximum use of our technologies
in the materials handling equipment and automobile-related fields andincrease our competitive edge by encouraging collaboration among
these fields.

14

Toyota Industries Report 2021

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Top Message● Electrification of Materials Handling Equipment(Lift Trucks and Others)
Electrification of lift trucks started much earlier than automobiles, and morethan 70% of our annual lift truck sales are already electric. These lift trucks
are used mainly in distribution warehouses and food manufacturing factories
as they emit no exhaust gas and are quiet to operate. We are working toincrease the appeal of our products by developing motors, controllers andother key components internally. We will also augment the development ofhigh value-added products. One such product is a lift truck equipped withlithium-ion batteries that enable continuous operation thanks to a shorter
Lift truck equipped with lithium-ion batteries
charging time. Another is a fuel cell lift truck with excellent environmental
performance, not emitting CO2 or NOx while in operation. Through these
efforts, we aim to remain a leader in the market with the electrification ofmaterials handling equipment.
● Car Electrification
With the progress of car electrification, electric vehicles have becomea frequent topic of conversation in our society. However, from a global
perspective, we expect demand for various types of electrified vehicles
Fuel cell lift truck
to increase, not just for battery electric vehicles (BEVs) but also for hybrid
electric vehicles (HEVs), plug-in hybrid
Expansion of Business Field by Leveraging Core Technologies
electric vehicles (PHEVs) and fuel cellelectric vehicles (FCEVs), depending on
Cooling batteries andExpand into heating
electronic devices
functions and coolingthe market characteristics in each region
components
and usage by customers. We will respond
Utilize our strengths
Expand businessof high efficiency
to car electrification by providing products,
field into drive
and reliability
which can be adopted in a broad range oftrain components
Vehicle interior heating
electrified vehicles, in the fields of car airApply
our coresEVcompression technology/Bs
conditioning compressors and electronic
V
HE
rP
VehicleFo
components.
interior cooling
For example, in the field of car airImpellersEV
conditioning compressors, we are
Installed in new MIRAI FCEV
s/H
e
l
ic
eh
nv
expanding sales of electric compressors
stio
u
b
om
to automakers across the world. With
l-c
rna
e
t
Hydrogen
Oxygen-supplyingr in
the emerging need to cool batteries, weFocirculation pump
air compressor
Turbocharger
see great growth potential in this field,
including components for drive systems.
In the electronics field, there has been a rise in demand from the perspectiveof social infrastructure for AC inverters as an emergency power source.
Combined with the RAV4 PHV’s system to feed power externally, we seek toincrease their use in evacuation shelters and similar locations. For on-board
batteries, we have accumulated a variety of knowledge through many yearsof research and development. This is a fiercely competitive sector, but wewill turn it into another growth pillar, following materials handling equipment
Disaster prevention drill using AC inverter’s external powerand car air-conditioning compressors, by offering batteries with uniquefeeding systemcharacteristics and a high competitive edge.

15

3. Future Direction of Management
Changes in the External Environment
Even though there are many views on the post-pandemic society, no one
knows for sure what it will be like. However, we have already witnessed
several changes in how we live and work.
The transformation of society and lifestyles is expected to continue into
the future, and changes that relate to our businesses include an increasein online transactions as seen in the further expansion of e-commerce.
Additionally, environmental initiatives will be of even greater importancefor companies, as green investments are spreading in an unprecedented
scope. We also expect the progress in digitalization will entail changes in
the industry structure.

Our Response
In responding to drastic changes, it will be crucial, more than anythingelse, to place top priority on safety while thoroughly ensuring quality,
compliance and other basic matters.
As for quality, we will strive for an even higher level of quality by utilizing
advanced technologies based on digital transformation (DX) on top of ourongoing efforts to maintain and improve quality. For example, we have newly
developed AI to predict product defects in the aluminum die-casting process
Motor housing for an electric compressor
manufactured by aluminum die-castingfor car air-conditioning compressors and are now exploring its applications
in further improving quality and productivity. In the future, we will leveragesuch digital technologies to transform our operations and business models.
After thoroughly ensuring basic matters such as these, it will be
important to proceed with the creation of a flexible and lean organizationin order to capture the aforementioned changes in society as new growth
opportunities. We will channel our management resources into focusedareas and leverage our own strengths to constantly create innovative
products and services.
Our basic approach to promoting these efforts is to provide products
Founder Sakichi Toyoda
and services that are needed by customers and are
helpful to society, as embraced in the Toyoda Precepts
Toyoda Precepts (Corporate Creed)(corporate creed). This stance will remain unchanged.
Carrying out the spirit of founder Sakichi Toyoda,
Besides observing laws and regulations, another• Always be faithful to your duties, thereby contributing to the
crucial element in ensuring corporate governance
Company and to the overall good.
is that everyone, from top management to individual• Always be studious and creative, striving to stay ahead of
the times.
employees, respects the culture of each region and• Always be practical and avoid frivolousness.
understands and trusts each other. We need to do• Always strive to build a homelike atmosphere at work that iswarm and friendly.
more than just establishing a governance system• Always have respect for God, and remember to be gratefulfor the sake of formality, but rather render it actuallyat all times.
functional and effective. As such, our continued aim is

16

Toyota Industries Report 2021

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Top Message

to operate the system in a manner to further improve the efficiency, fairness
and transparency of management. With regard to our relationships withcompanies in the Toyota Group, we will continue to reinforce collaborationin various ways to survive the difficult environment, since competition isincreasingly intensifying in the automobile industry and automobile-related
businesses form the core of our monozukuri (manufacturing).
Environmental protection is a theme of growing importance for
manufacturers, including Toyota Industries. We will continue to focus on
this area under the Global Environmental Commitment and in accordancewith the Environmental Vision 2050 and the newly formulated Seventh
Environmental Action Plan. (See pages 64–65.) In the “Responding toElectrification” section of this message, I have explained about electrificationin the lift truck, car air-conditioning compressor and electronics productsectors. However, our environment-friendly products, such as electrified
or fuel-efficient products, actually cover every sector of our businesses.
As examples, in the Vehicle Business, more than half of the RAV4
manufactured by Toyota Industries are HEVs and PHEVs. In the Engine
Business, we also manufacture gasoline engines for HEVs. Our textile
machinery products, which form our founding business, are renowned fortheir energy-saving performance. In the future as well, we will continue tofulfill our role as a manufacturer in protecting the global environment. (See
Special Feature 2 “Contributing Both in Terms of Product Development andProduction to the Establishment of a Carbon Neutral Society” on pages
22–25 for our environment-friendly products.)

4. In Conclusion

Environmental Vision 2050 under the
Global Environmental Commitment(1) Establishing a carbon neutral
society(2) Establishing a recycling-basedsociety(3) Reducing environmental risk andestablishing a society in harmony
with nature(4) Promoting environmental
management

RAV4 PHV

Gasoline engine for HEVs

Since we were founded in 1926 to manufacture and sell an automatic
loom invented by founder Sakichi Toyoda, we have attained sustainablegrowth by adapting our business portfolio to changes in society andcustomer needs and accordingly extending our reach in the automobilerelated and materials handling equipment fields. The idea underpinning our
growth basically aligns with the environmental, social and governance(ESG) concept and the United Nations’ Sustainable Development Goals(SDGs) in that we seek to respond to social issues from a long-term
perspective.
To date, we have endeavored to develop a variety of competitive
products and accumulate technologies and know-how. We have also built
relationships of trust with our stakeholders, including business partners
and customers, as we engage with them from a long-term perspective.
Capitalizing on these tangible and intangible assets, we intend tostrengthen business even further in order to attain growth over the
medium to long term.

17

Taking the Initiative for Growth – 1

Contributing to Logistics Efficiencies of Customers by
Providing Support throughout the Logistics Lifecycle
The needs for automation and labor saving in logistics operations are growing, driven mainly by a higher
logistics volume on the back of an expanding world economy and a growth in e-commerce transactions aswell as by the spread of COVID-19. Toyota Industries’ Materials Handling Equipment Business provides
support throughout the value chain encompassing from the sales of lift trucks and other materials handlingequipment to the provision of after-sales services. Leveraging the comprehensive strengths of engaging in the
Lift Truck Business and Logistics Solutions Business, we are striving to assist customers in attaining greater
logistics efficiencies.

18

Toyota Industries Report 2021

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Taking the Initiative for Growth – 1

Importance of Logistics andMarket Growth Potential

In acting as a lubricant for economic activities, logistics havecome to play an important role in our daily lives.
Recently, logistics volume has been progressively
increasing year after year marked by a rising global
population and expanding economies. With the growth ofthe e-commerce market, the trend toward a higher logistics
volume is expected to continue for the foreseeable future. In
addition, a labor shortage in developed countries and asurge in labor costs mainly in emerging countries have
converged to drive a further increase in needs for greater
logistics efficiencies.

Offering Support throughout
the Logistics Lifecycle

World e-Commerce Market*1(US$ billion)
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
(FY)

15

16

17

18

19

20

*1: Produced by Toyota Industries based on “Study Report on a Structural Analysis of
the ICT Industry in the IoT Era and Verification of ICT’s Multifaceted Contribution to
Economic Growth,” Japan’s Ministry of Internal Affairs and Communication (2016)

It is important to conduct proper maintenance on materials
handling equipment and systems and keep them in
optimum operating condition to maximize the efficiency oflogistics sites. Toyota Industries has in place a structure that
customers can rely on by establishing extensive sales andservice networks throughout the world and assigning highly
skilled staff.
Moreover, we leverage the know-how nurtured byresponding to various needs required at global logistics sites
and propose the most advantageous solutions for logistics
improvements for each and every customer.
In the future as well, we are committed to contributing tobetter logistics efficiencies by offering support to customers
throughout the logistics lifecycle extending from after-sales
services to fleet management and preventive maintenanceutilizing IT technologies, lift truck leasing, consulting forlogistics improvements and other logistics solutions.

Research &Development• Ahead of the times• Customer needs• Performance• Ecology• Design

Aftersales services• Customer first• Worldwide• Professional
excellence• Genuine parts• Best practices

Production• Toyota
Production
System (TPS)• Kaizen(improvement)• Environmental• Just-in-time• Jidoka(automation)

Product

Business solutions• Fleet management• Rental• Used• Sales financing• Logistics• Quality• Safety• Durability• Efficiency• Innovative• Recyclable

Strengths of Toyota Industries’ Materials Handling Equipment Business
Lift Truck Business
Product differentiation on the back of key
components developed in-house

Utilization of IT technologies for fleet
operation management and more efficientand sophisticated services

Proposals for improvements at logistics sites
based on long-accumulated experience andToyota Production/Logistics Systems

Broad product lineup, including global
top-share*2 lift trucks

Globally extensive sales andservice networks

Customer support throughout the lifecycleof products

Highly experienced andskilled service staff

Logistics Solutions Business
Collaboration with the Lift Truck Business,
which boasts a top market share*2
Synergistic effects through acomplementary relationship among Toyota
Industries, Bastian and Vanderlande

Extensive product lineup andexcellent softwaredevelopment competence

Business structure extending
throughout the world
Well-balanced sales composition in suchsectors as e-commerce, parcel andairport-related businesses

The following pages introduce case examples in which we leveragedthese strengths to successfully contribute to greater logistics efficiencies of customers.
*2: Survey by Toyota Industries Corporation

19

Case
Example1

Providing a Stable and Efficient Logistics Environment
through Extensive After-Sales Services

One of Toyota Material Handling Japan’s (TMHJ) strengths lies in its ability to render solid support tocustomers’ logistics environments through comprehensive after-sales services provided by highly experienced
and skilled service staff. Offering full maintenance services, including preventive maintenance, contributes toavoiding unexpected breakdowns and realizing customers’ stable and efficient logistics operations.

Sobu Logistics Corporation
Sobu Logistics Corporation is responsible
for logistics operations in Japan for the
Kikkoman Group, which manufacturesand sells condiments and processed
foods. The company is consigned toprovide comprehensive logistics
operations, from receiving orders topurchasing products, of Kikkoman
Corporation and Kikkoman Foods, Inc.

Entrusted with Lift Truck Management

One of the strengths of Sobu Logistics Corporation is tooperate six distribution center warehouses and 40 truck
terminals that enable products to be delivered on thefollowing day of orders placed.
Lift trucks play a critical role of delivering products
to customers in the optimum condition on time. At theNoda Delivery Center, where an average of 1,200 tons ofKikkoman products are shipped every day, approximately
40 lift trucks are in use for loading/unloading operations.
Including lift trucks used at other distribution center
warehouses, Sobu Logistics possesses more than 100 lift
trucks. With numerous lift trucks in operation, the company
had been faced with lift truck management issues such as[Customer’s Voice]In our business, we tend to place an extra load on
our lift trucks, but we find Toyota lift trucks very
reliable. TMHJ service staff quickly arrive when weneed them, make proposals for an appropriate
model and the number of lift trucks corresponding tochanges in our operating situation and makerecommendations for the proper timing of truck
replacements. In these and other ways, we are
extremely satisfied with TMHJ’s swift response.

Mr. Hiroshi Tobe
President
Sobu Logistics Corporation

20

Toyota Industries Report 2021

arranging for repairs in times of unexpected breakdowns,
incurring high maintenance costs and keeping track of thenumber of lift trucks required at any given time.
TMHJ conducted a multifaceted study on operating
hours, traffic lines and other aspects of Sobu Logistics’ lift
trucks and proposed an optimum logistics environment,
which resulted in Sobu Logistics entrusting TMHJ with the
management of all their lift trucks. Providing full maintenanceservices, including preventive maintenance, has contributed
to decreasing unexpected breakdowns of lift trucks andreducing or leveling out maintenance and management
costs. This has made it unnecessary to retain backup lift
trucks, thereby reducing the total number of vehicles.

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Taking the Initiative for Growth – 1

Case
Example2

Utilizing Telematics Functions to Increase Safety and Reduce Costs

Improvements in information and communication technology have advanced the use of the Internet of Things (IoT) in
society. As such, the role of telematics technologies in the fleet management of lift trucks has become increasingly
important. Toyota Material Handling Europe’s (TMHE) Toyota I_Site fleet management system harnesses cutting-edge
technologies and the know-how cultivated through various improvement activities to make it possible to comprehend
the operating status of lift trucks in real time and establish a safe and reliable logistics environment.

Danske Fragtmænd
Danske Fragtmænd is Denmark’s largest
logistics operator boasting more than a
100-year history. With more than 40,000
business customers, the company offers
high-quality logistics services including
next-day deliveries anywhere in the
country.

Responding to Stringent Safety
Requirements and Offering Support toCustomers

With an ever-increasing package volume for delivery, Danske
Fragtmænd is striving to ensure the safety of its lift truck
operators. Approximately 40 lift trucks are in operation
within a limited space at their warehouse in Taulov, and thecompany wanted to reduce impacts between lift trucks andracks or loads, or collisions between lift trucks. To resolve
this issue, TMHE made a proposal to utilize Toyota I_Site
to raise safety awareness among lift truck operators andreduce accidents.
Should an accident occur, the fleet management system
makes it possible to identify the date and the pattern of

the impact as well as which lift truck was involved and thedriver. The system also evaluates each operator’s operationfrom safety and environmental aspects, such as hardbraking, sudden acceleration and other reckless driving
practices as well as the fuel consumption status, thereby
contributing to increasing the safety awareness of operators.
In addition, Toyota I_Site helps the company to reducemanagement costs by understanding the operational statusof each lift truck in detail in real time, which in turn enables
the optimization of the number of lift trucks needed for its
logistics operations.

[I_Site Manager’s Voice]
The customer has been greatly benefiting from theintroduction of Toyota I_Site. When an accident has
occurred, the customer can easily identify which lift
truck and which operator was involved, allowing
them to quickly make appropriate responses. Suchincidents are also recorded in the system, whichmakes it easier to instruct operators to practice safe
driving.

Mr. Søren Vester
I_Site Manager
Toyota Material Handling Denmark21

Taking the Initiative for Growth – 2

Contributing Both in Terms of Product Development andProduction to the Establishment of a Carbon Neutral Society
Environmental Vision 2050

As one tenet under our Basic Philosophy, Toyota Industries works to contribute to
making the earth a better place to live and enriching lifestyles and also strives to offer
products and services that are clean, safe and of high quality. Accordingly, we haveestablished the Global Environmental Commitment, a specific environmental action
guideline, and have been sharing and implementing it throughout the Toyota
Industries Group.
We recognize that contributing to the establishment of a carbon neutral society is
an important issue under the commitment. As such, we have been promoting
initiatives in various fields, such as electrification, weight reduction, energy savings
and adoption of renewable energy sources in seeking to realize a zero CO2 emissions
society in 2050.
Aiming at building a sustainable society
which enables the harmonious coexistence of
nature with our daily lives

Toshihiko Shimizu
Senior Executive Officer
Head of the Production Engineering
Development Center, Die Engineering
Center, Quality Control Dept. and Plant
Engineering & Environment Dept.,
Production Headquarters(As of March 31, 2021)

Environmental risk
reduction
Society in harmony
with nature
Carbonneutral society(1) Establishing a carbon neutral society
Globally take on challenge of establishinga zero CO2 emissions society(2) Establishing a recycling-based society
Take on challenge of minimizing the use ofresources

Recyclingbased society

Environmental Management
Notional Diagram of Global Environmental Commitment

Review of the Sixth Environmental Action Plan
— Establishing a Carbon Neutral Society —Positioning the establishment of a carbon neutral society as
our most crucial environmental issue, Toyota Industries has
been carrying out production activities with a constant focus
on saving energy. At the same time, we have accelerated thedevelopment of more environment-friendly products.
Under the Sixth Environmental Action Plan, a five-yearplan implemented from fiscal 2017 to fiscal 2021, our two
primary action policies were to “develop products andtechnologies possessing the utmost level of environmental
performance” and “develop and introduce productionengineering technologies with lower CO2 emissions and utilize
clean energy.” We have steadily undertaken tasks definedfor each policy and successfully achieved respective targets.
Please see pages 62−63 for details.

(3) Reducing environmental risk and establishinga society in harmony with nature
Generate positive influence on biodiversity(4) Promoting environmental management
Enhance consolidated environmental
management and promote enlightenment
activities

Approach of the Seventh Environmental
Action Plan
— Establishing a Carbon Neutral Society —We have formulated a next plan, the Seventh Environmental
Action Plan covering five years from fiscal 2022 to fiscal 2026.
With regard to products, we will emphasize reduction of
CO2 emissions as early as from the technology development
stage while further pursuing better energy-saving
performance, lighter weight and development of technologies
responding to electrification. In terms of production, while
making all-out efforts to save energy, we will define a global
target of total CO2 emissions and work toward the target sothat we can curb emissions as we expand business. In
addition, we will actively adopt renewable energy sources on
a global basis by setting a target introduction rate. Please see
pages 64−65 for details.

Steady Progress in Five Years
FY201722

FY2018FY2019FY2020

FY2021

Certified as anenvironment-friendly
product (gene B)

Certified as anenvironment-friendly
product (towing
tractor)

Opened H2
PLAZA Hydrogen
Station(Takahama Plant)

Added a 1.8-tonmodel to the lineup
of fuel cell (FC) lift
trucks

Oxygen-supplying
air compressor for
FCEVs

Saved
energy byusing
intermittent
air blow

Energy-saving equipment
utilizing karakuri mechanicalsystems winning a Good Idea
Award in the Karakuri KAIZEN
Exhibition

Reduced energy used in a
vehicle painting dry-off oven

Achieved a zeroCO2 emissions
plant for the firsttime in the Group(TMHMS)Portion heatedneeds heating
Reduced CO2
emissions by creating Before Heating processes
improvement
energy-saving
Consolidatingproduction lines linked
After
to product designs improvement

Toyota Industries Report 2021

Part

Beforeimprovement

Hot air
outlets

After
improvement

Exhaust outlets

Hot air outlets
Exhaust outlets

Portion that

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Taking the Initiative for Growth – 2

Reducing CO2 Emissions in Product Development
Toyota Industries develops products with excellent environmental performance by sharing and encouraging the evolution oftechnologies and know-how of each business, mainly the Materials Handling Equipment Business and the automobile-related
businesses.
This section highlights our efforts related to electrification, which is key to developing products that can reduce CO2 emissions.

Environment-Friendly Products

Materials Handling Equipment

Electric lift truck
Electric low
lift truck
Reach-type lift truck equippedwith lithium-ion batteries

FC lift truck

Car Air-Conditioning Compressor
Variable-displacement
type compressor(for internal-combustion
vehicles)Electric compressor(for HEVs, PHEVs,
BEVs and FCEVs)

Releasing environment-friendly
products in each business field

Charging stand for
PHEVs and BEVs

DC-DC converter

Oxygen-supplying air
compressor for FCEVs

Hydrogencirculation pumpfor FCEVs

AC inverter

Electronics

On-board charger

Automobile-Related Businesses
We develop and manufacture devices for a range of electrified vehicles, from hybrid electric vehicles (HEVs) to fuel cellelectric vehicles (FCEVs), and enjoy the world’s top share*1 in the car air-conditioning compressor and electronics fields.
*1: Survey by Toyota Industries Corporation

Car Air-Conditioning Compressor

 Providing Products with Excellent Energy-Saving
Performance
Sales of various electrified vehicles,
including HEVs, plug-in hybrid electricvehicles (PHEVs), battery electricvehicles (BEVs) and FCEVs, areincreasing in line with the growing
need for car electrification.
Car air-conditioning compressors
mounted on these electrified vehicles
Tomoji Tarutani
also need to be electric, and the mostGeneral Manager, Engineering
Dept., Compressor Division
important aspect of their performance(As of March 31, 2021)
is electric efficiency, which is directly
linked to the cruising range.
Besides requiring the same level of precision processing
and assembly technologies used for conventional compressors
for internal-combustion vehicles, electric compressors need
another important technology to ensure compatibility with
newly added electronic components. Taking advantage of ourstrengths in these technologies, we have successfully achieved
high electric efficiency performance.
Since being adopted in thePrius of Toyota Motor Corporation(TMC), we have been providing
compressors for various electrified
vehicles of automakers in andoutside Japan for about 20 years,
accumulating a pool of related
technologies and know-how along
ESB20 electric compressor
the way. Additionally, as BEVs facea problem of lower electric efficiency when a heater is turned on,
we have developed a compressor for heat pump air conditioning
systems to help improve electric efficiency while heating.

 Compressors Also Used for Cooling Key Components
In recent years, following car electrification and widespreaduse of autonomous driving technology, there has been agrowing need to cool electronic devices, batteries and otherkey heat-emitting components. In response, we havedeveloped a large-capacity model used not only for vehicle
interior air conditioning but also for cooling those key
components. As products in this field relate to the driving
performance of automobiles, we believe that the reliability ofour products will serve as an even greater strength of Toyota
Industries.
 Utilizing Compression Technologies to Provide Drive
System Components
For FCEVs, which are a type of electrified vehicle thatgenerates electricity through a chemical reaction of hydrogenand oxygen, we have applied compression technology of car
air-conditioning compressors and developed such products
as an oxygen-supplying air compressor, which efficiently
compresses and supplies oxygen. The product is alreadyfitted in the MIRAI.
By leveraging our elemental technologies, we intend toincrease our role in the fields that relate to the driving
functionality of FCEVs, which are said to be the “ultimate
eco-car.”
Products Utilizing Compression Technologies

Oxygen-supplying air compressor

Hydrogen circulation pump

23

Materials Handling
Equipment

Automobile

Electronics

 Further Improving Environmental Performance of Power
Source Devices and Helping to Promote Electrificationin Each BusinessIn the field of car electronics, wedevelop and manufacture on-board
power source devices, including
DC-DC converters, on-board chargers
and AC inverters, and charging stands
by utilizing power electronics as thecore technology. By selling theseproducts to automakers, mainly TMC,
Takashi Kubooka
we are working to contribute to theGeneral Manager, Engineering
Dept., Electronics Division widespread use of electrified vehicles.
(As of March 31, 2021)
The progress in car electrification
and automation has raisedElectronics

TextileMachinery

expectations for more diverse power source devices withhigher performance (higher efficiency as well as size andweight reduction). Accordingly, we will pursue even higher
environmental performance and expand the scope of ourdevelopment efforts to power source system products.
Moreover, we are seeking to improve environmental
performance by applying the technology and know-how
accumulated in the development of power source devices toour other products, such as materials handling equipment
and textile machinery. Our plan is to increase our contribution
to the establishment of a carbon neutral society by promoting
electrification in each business field, including car electronics.

Materials Handling Equipment BusinessToyota industries offers a wide range of industrial vehicles such as towing tractors, low lift
trucks, automatic guided vehicles (AGV) and lift trucks, which have the global top market
share*2. Since releasing our electric lift trucks to the market in the 1970s, many products
have been electrified, and we are working to strengthen the competitiveness of our products
through in-house production of key components such as motors, inverters and electronic
control units (ECU).
*2: Survey by Toyota Industries Corporation

 Offering Trucks Equipped with Lithium-Ion Batteries or
Fuel Cells
In addition to the conventional electric lift truck, in 2016 welaunched a lithium-ion battery installation type thatsignificantly shortens the battery charging time. The truck
does not require the replacement of heavy batteries, which
can reduce the burden on the operator.
In the same year, an FC
lift truck was released. The
FC system installed in thisproduct was developed forrealizing the features of thelift truck, utilizing the fuelcell used in the MIRAI
developed by TMC. In
February 2021, weCompact FC module
developed a new generalpurpose small fuel cell
Lead-Acid Battery Type

Equipped with aninternally developed
high-efficiency
motor, etc.
Lower energy cost
resulting fromlonger uptime

24

Toyota Industries Report 2021

Haruhiko Otsuka
General Manager, Engineering Dept.,
Toyota Material Handling Japan(As of March 31, 2021)

module. This module packages FC system components forthe generation of electricity and achieves high power
generation efficiency. It’s also relatively easy to install invarious existing engine-powered products. In the future, we
aim to supply the module as a stationary power generator toplants and commercial facilities and install it in industrial
vehicles and buses.
 Efforts to Increase the Percentage of Electrification of
Large Models
The electrification rate of the entire lift truck market has
already exceeded 60%, but the electrification of large models
has not progressed much due to the lack of power comparedwith internal-combustion models. Toyota Industries will utilize
its key component technology cultivated in electronics as wellas truck control technology to advance the development ofhigh-output and high-voltage components and improve theelectrification of large models.

Lithium-Ion Battery Type

Fuel Cell Type

Much shorter
charging time

No CO2 emissions
while in operation

Less burden of battery
replacement

Excellent environmental
performance

Equipped with T_Site
telematics as standard foreasier fleet management

Enhanced convenienceof completing fuelcharging in threeminutesCompany Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Taking the Initiative for Growth – 2

Reducing CO2 Emissions in Production Activities
The two pillars of Toyota Industries’ efforts to reduce CO2 emissions in its production activities are promoting thoroughenergy savings and utilizing renewable energy. The following shows examples among such efforts in this area.
 Promoting Thorough Energy Savings
In implementing thorough energy savings,
we are making proactive, Company-wide
efforts to “develop and introduce productionengineering technologies with lower CO2
emissions” and “fully implement
improvement activities on a daily basis.” For
the former, the Nagakusa Plant, a vehicle
assembly plant in Aichi Prefecture,undertook an improvement project with a2019 Energy
focus on minimizing the amount of heat
Conservation Grand
used in a painting dry-off oven andPrize
suppressing heat dissipation, thus
successfully achieving lower energy loss and a subsequent,drastic reduction in CO2 emissions. The project won the 2019
Minister of Economy, Trade and Industry Award in the
Industrial Field, which is the highest award in the Energy
Conservation Grand Prize program (Energy Saving Projects
Category) run by the Energy Conservation Center, Japan.
 Utilizing Renewable Energy
As part of an effort to utilize renewable energy, we areproactively introducing clean energy.
Toyota Material Handling Europe AB (TMHE), a subsidiaryserving as the regional headquarters of the materials handlingequipment business in Europe, has formulated a twopronged policy aimed at zero energy muda (waste) and zerocarbon emissions by fiscal 2031. As an interim target, TMHE
has worked to increase the ratio of electricity from renewable

Summary

As highlighted in this section, Toyota Industries isaggressively working to reduce CO2 emissions both interms of products and production toward theestablishment of a carbon neutral society. As a result ofsuch efforts, we were selected for the A List, the highest
rating, for three consecutive years in a survey conducted
on climate change by CDP*3, a U.K.-based international
environmental NGO.
As for products, we expect that more stringent
environmental regulations in various countries and growing
energy-saving consciousness among customers willfurther accelerate the electrification of cars and materials
handling equipment in the future. Amid this environment,
we will holistically leverage our broad range of technologies
accumulated in the automobile-related businesses andMaterials Handling Equipment Business to further reinforce
our development efforts geared toward electrification.
In terms of production, we have announced our target
to reduce CO2 emissions by 25% in fiscal 2026 from thefiscal 2014 level in becoming carbon neutral (zero CO2emissions) in 2050. Actually, however, we are aiming for aneven more ambitious target of achieving a 50% reduction
by fiscal 2031 from the fiscal 2014 level. We recognize thatenergy sources to 100% at
Achieved 100% use of
all of its bases by fiscal
electricity from renewableenergy sources
2021.
April
At
materials
handling equipment
To achieve this target,
production bases in Europe
2018
TMHE has selected the one
At all materials handlingAprilequipment bases in Europethat best matches each2021
(production + sales)base from among three
options: power contracts
for renewable energy power
Targetgeneration, renewable
FY
Achieve zero CO emissions totally2031
energy certificates andby replacing LPG andother gases with biogas
in-house power generation.
As a result, all of its fiveproduction bases and all 28 non-production companies
achieved the interim target in fiscal 2019 and in April 2021,
respectively. TMHE became the first company in the materials
handling equipment industry to achieve 100% use ofelectricity from renewable energy sources at all bases in
Europe.
In 2019, Toyota Material Handling Manufacturing Sweden
AB (TMHMS), a TMHE Group company, went a step beyond
using electricity from renewable energy and introduced
biogas in place of liquefied petroleum gas (LPG),
thereby becoming the first zero CO2 emissions
plant in the Toyota Industries Group.
TMHE is undertaking activities to switch allenergy sources used at business sites torenewable energy by 2030.
2

thorough improvement of our energy
use efficiency and effective
introduction of renewable energy willbe crucial in achieving this target.
Specifically, we will need to minimize
and utilize exhaust heat from foundry
and other processes, which form a
distinctive part of our business. In promoting the utilizationof renewable energy, we will extend the regionally uniqueeffort first undertaken by our bases in Europe to the entire
Group while defining new targets. Simultaneously, we willtake up a challenge of spurring innovation in
manufacturing to achieve carbon neutrality. The challenge
will include introducing production engineering
technologies that have undergone repeated discussions
on CO2 reduction from the product design stage. Further
endeavors will also entail proactively carrying out
demonstration and introduction of new carbon neutral
technologies, such as the use of hydrogen and capturingof CO2 at plants, for establishing a CO2 circulation system
at a model plant.
We will continue to make proactive efforts to reduce
CO2 emissions both in terms of products and production
and contribute to the creation of a carbon neutral society.

*3: An international NGO running a project in which institutional investors work together and request companies around the world to disclose their strategies against climate change andgreenhouse gas emissions data25

Business Activities

Materials Handling Equipment

P. 26–31

Automobile (Vehicle / Engine / Car Air-Conditioning Compressor / Electronics)

P. 32-37

Textile Machinery

P. 38

Materials Handling Equipment

Link toproduct
details

As a market leader with an extensive knowledge of global logistics needs, Toyota
Industries provides a range of materials handling equipment, mainly lift trucks, andlogistics solutions to customers.

Medium-Term Direction of BusinessWe will work to develop and propose new products and services incorporating cutting-edge technologies through theproactive use of open innovation and co-creation with customers.
Our goal is to become the logistics solutions partner of the first choice for customers by meeting their wide-ranging needs
and helping them increase their logistics efficiencies based on the Toyota Industries Group’s comprehensive strengths coveringboth the lift trucks and logistics solutions fields.

Business Characteristics

Net Sales

Operating Profit

FY2020

FY2020¥1,436.3 billion¥102.2 billion

FY2021

FY2021

Strengths• An extensive logistics-related product lineup both for lift trucks(internal-combustion type, electric type, fuel cell (FC) type, etc.) andlogistics solutions products (automated storage and retrieval systems,
automatic guided vehicle (AGV) systems, automated lift trucks, etc.)• High technological capabilities, including those linked toenvironmental and safety performance• Production know-how that ensures high levels of quality andproduction efficiency• Global, well-developed production, sales and service networks• An extensive value chain encompassing in-house development andproduction of engines, motors and other key components; total
after-sales services including maintenance and inspections as well
as operational management; and sales financing operations offering
more options in sales• No. 1*1 in lift truck unit sales in the world• A wealth of experience and know-how as well as a global networkin the Logistics Solutions Business• Software development capability to create such systems as awarehouse management system

1,431.4 billion

109.9 billion¥¥

Materials Handling Equipment Sales(Thousand units)

300
200

100

*1: Survey by Toyota Industries Corporation

Opportunities• An expansion of global logistics volume in line with an increase in
the world population and economic growth• Growing need for electric lift trucks and products with high fuelefficiency and low environmental impact following enforcement of
more stringent environmental regulations around the world• Rising need for higher logistics efficiencies prompted mainly by agrowth in e-commerce transactions as well as soaring labor costs
and labor shortages• Growing need for automation and labor saving driven by the
emerging need for contactless operations due to COVID-19• Increased recognition that logistics is an essential business

Risks• Restrained capital investment due mainly to a slowing economy
and disasters• Weaker sales due to intensifying competition• Change in business environment triggered by an expanding market
of low- to mid-priced lift trucks• Suspension of production caused by supply chain disruptions• Weaker demand for internal-combustion lift trucks resulting from
more stringent environmental regulations• Emergence of next-generation robotics products as an alternative
to lift trucks

26

Toyota Industries Report 2021

0
(FY)

17

18

19

20

Business Overview in Fiscal 2021

21

The lift truck market in 2020 turned downward
except for China, where sales continued to increase.
Amid this operating climate, Toyota Industries
engaged in sales and after-sales service activities
matched to respective markets. However, unit
sales of lift trucks for fiscal 2021 were down 28,000
units, or 10%, to a total of 250,000 units from theprevious fiscal year. Meanwhile, as the need forhigher logistics efficiencies in warehouses is gettingstronger, underpinned by an expansion of the
e-commerce market, Toyota Industries made efforts
for reinforcement of the Logistics Solutions Businessthrough collaboration with subsidiaries in the
United States and Europe. Net sales in fiscal 2021
were roughly on par with the previous fiscal year at¥1,431.4 billion.

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities

Business Structure
Toyota Industries’ Materials Handling Equipment Business is
operated under a two-organization structure: Toyota
Material Handling Group (TMHG) responsible for the Lift
Truck Business and Toyota Advanced Logistics Group(TALG) engaging in the Logistics Solutions Business. TMHG
and TALG collaborate with each other to achieve overall
growth of the Materials Handling Equipment Business while
reinforcing individual businesses.

Toyota Material Handling Group (TMHG)
Toyota Industries assists customers worldwide in attaining
greater logistics efficiencies as a market leader in thematerials handling equipment and logistics fields bydelivering optimal logistics solutions based on its
comprehensive strengths to respond to their specific andever-changing needs on a global scale.
Under the TMHG management structure, we engage inthe Lift Truck Business under the TOYOTA, BT, RAYMOND,CESAB and Tailift brands. Mutually utilizing the development
and sales strengths of each brand, TMHG is promoting
business globally.
We basically carry out product development in three
regions, namely Japan, North America and Europe. Basedon this structure, we develop and manufacture products ineach region, which are matched to the specific local needs
and characteristics, and ensure quick product delivery tocustomers. At the same time, we seek greater productappeal by conducting in-house development andproduction of such key components as engines and motors,

which greatly influence the performance of lift trucks. In
response to the enforcement of stricter environmental
regulations and growing eco-consciousness worldwide,
we are improving the energy-saving performance andenhancing our electric lift truck lineup. We are also
promoting the development of autonomous driving
technology as a response to growing needs for greater
logistics efficiencies mainly driven by labor shortages.
In addition to supplying high-quality products, weconsider our strength to be able to support customers
throughout our entire value chain that encompasses fromproviding after-sales services through our extensive
networks to offering sales financing operations. On the sales
front, we are offering products and logistics improvement
solutions optimally matched to individual customers’
logistics sites. Simultaneously, we are responding to needs
for fleet management that optimizes the operation ofmultiple lift trucks for customers conducting businessglobally. In terms of services, we assign experienced andhighly skilled personnel and utilize leading-edge information
technology (IT) to provide finely tailored services tocustomers. Our service personnel visit customers on aperiodic basis and provide maintenance services to prevent
troubles from occurring. When a problem does occur, theyswiftly make a visit to the customer and promptly takeappropriate action. We are also strengthening our internalsales financing operations mainly in Europe, the UnitedStates and other developed countries in order to flexibly
respond to customers’ diverse needs, including those forfund procurement, in the area of equipment sales.
Additionally, TMHG is collaborating with TALG to createsynergies between the lift trucks and logistics solutions
fields in development and other domains.

Toyota Material Handling Group

TMHG

Toyota Industries’ Global
Lift Truck Market Share(Survey by Toyota Industries
Corporation, 2020)

TMHJ

TMHNA

TMHE

TMHI

TMHCN

Toyota Material
HandlingJapan

Toyota Material
Handling
North America

Toyota Material
Handling
EuropeToyota Material
Handling
International

Toyota Material
Handling
China

The Toyota Material Handling Group possesses several brands such as TOYOTA, BT and RAYMOND and engages inbusiness by dividing the world into five areas: TMHJ (Japan), TMHNA (North America), TMHE (Europe),
TMHI (Asia, Australia, etc.) and TMHCN (China).

ToyotaIndustries
16%

World No. 1

Main ProductsElectric lift truck

Reach-type electric lift truck

Electric low lift truck

Internal-combustion lift truck

Automated lift truck27

Toyota Advanced Logistics Group (TALG)
With accelerated expansion of the e-commerce market due
in part to the growing need for contactless operations as aresult of COVID-19, the need for logistics automation has
been on the rise across the world. This has entailed
increases in the number and size of distribution centers,
which in turn have necessitated solutions for moreadvanced logistics issues.
Amid this environment, we go a step beyond justproviding a broad range of materials handling equipment
and associated software programs and are reinforcing our
Logistics Solutions Business to more meticulously satisfy
each customer’s varying needs by leveraging our logistics
improvement know-how accumulated to date.
Under the TALG management structure, the Logistics
System Engineering Department of Toyota Material HandlingJapan, U.S.-based Bastian Solutions LLC and Netherlands-

based Vanderlande Industries Holding B.V. are collaboratingwith each other in development, sales and other activities toexpand business while leveraging their individual strengths.
Toyota Advanced Logistics Group

TALG
Logistics System
Engineering Departmentof Toyota Material
Handling JapanTALNA*2/
BastianVanderlande*2: Toyota Advanced Logistics North America (Holding Company of Bastian)Under TALG, the Logistics System Engineering Department of Toyota
Material Handling Japan, Bastian and Vanderlande work together topromote the Logistics Solutions Business on a global scale whileleveraging their individual strengths.

Main Products and Systems

Automated storage andretrieval system

Simple AGV

SorterBusiness Activities in Fiscal 2021
Despite dropping sharply due to COVID-19, the world’s lift
truck market grew overall in 2020 as evidenced by arecovery trend after bottoming out in the first quarter in
China and in the second quarter elsewhere. Over the fullyear, the market expanded considerably year on year in
China, but shrank slightly from the previous year’s level inJapan, North America, Europe and other emerging
countries. Amid this environment, we worked to enhance
the product appeal of our mainstay lift trucks and expand
sales. We also strove to offer reliable after-sales services,enhance responsiveness to large-order customers andprovide solutions for logistics issues through theintroduction of optimally packaged systems.
In the field of lift trucks, we made efforts to increase our
product lineup in each region and promoted thedevelopment of autonomous driving technology internallyand with external organizations. We also worked to reinforce
our IT-based services, enhance safety and augment ourcompetitiveness in the environmental field mainly throughelectrification in order to ensure a more accurate response
to individual customers.
With regard to engines to be fitted in the 2021 models ofsome internal-combustion lift trucks sold in North America,
we have not been able to obtain the country’s legally
mandated engine certification (as of June 30, 2021).
Consequently, we suspended the shipment of these models(gasoline/LPG type) in January 2021 and their production in

28

Toyota Industries Report 2021

High-speed storage andpicking system

Airport baggage handlingsystemJune 2021. We will work for early resolution of the issue andendeavor to receive certification by continuing to provide
relevant information to the U.S. environmental authority.
In the logistics solutions field, we have been fostering
cooperation in sales activities by mutually supplying
equipment and systems while encouraging each TALG
company to leverage its strengths to bolster business. We
have also been accelerating coordinated activities as TALG
such as promoting collaborative efforts in the planning anddevelopment fields. In April 2021, we established a newcompany, T-Hive B.V., in the Netherlands to develop aseamless control system for Toyota
Industries’ autonomous vehicles andsystems, such as automated guided
forklifts (AGF), automated guided
vehicles (AGV) and autonomous
mobile robots (AMR).
Meanwhile, Aichi Corporation,
which possesses the top brand*3 inthe field of aerial work platforms inJapan, made efforts to expand sales
in the electricity and communications
fields, while the market of specialpurpose vehicles declined steeply
due to restrained capital investmentin the leasing industry. As a result,
Aichi posted sales of ¥59.3 billion, up¥0.9 billion, or 2%, over the previous
fiscal year.
Aichi Corporation’s aerial*3: Survey by Aichi Corporation

work platform

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities

Activities of TMHG
■ Japanese Market

In 2020, while an expansion of the e-commerce market
pushed up the demand for lift trucks, customers postponed
their capital investment projects due to COVID-19, and theJapanese lift truck market declined overall. Unit sales ofToyota Industries’ lift trucks were on par with the previous
fiscal year at 45,000 units in fiscal 2021, but still maintained
the top position*4 in calendar 2020 for the 55th consecutiveyear.
The diversification of customer needs, heightened on theback of an expansion of the e-commerce market, labor
shortages and growing safety and environmental
consciousness among companies, has further accelerated
amid the COVID-19 pandemic. As the leading manufacturerof materials handling equipment, Toyota Industries has beenproactively promoting the development and release of new
products that lead to resolving issues facing customers.
As with the automobile industry, where development has
been proceeding for cars equipped with advanced safety
technologies, the logistics industry is facing a growing needfor more widespread use of lift trucks equipped withfunctions to support safe operations. As a response, in April
2020 we added a safe operation assistance function, which
had been available as an option, to our mainstay GENEOseries internal-combustion lift trucks and gene B-series
electric lift trucks as a standard feature. Through asynergistic effect with the System of Active Safety (SAS)*5,
a proprietary safety system fitted in our main lift truckmodels since 1998, we will further help reduce accidents
caused by lift trucks.
Needs are also growing for the automation of materials
handling equipment to increase the efficiency of logistics
operations and make them
contactless. In cooperation
with All Nippon Airways
Co., Ltd., we have carriedout a test trial of ourautonomous towing tractors
to carry baggage at
Kyushu-Saga International
Airport. The test trial has
been a first*6 in Japan totake place in actual airport
Autonomous towing tractor
operations.
*4: Survey by Toyota Industries Corporation based on data published by Japan Industrial
Vehicles Association*5: A safety system that helps to prevent the overturning of a lift truck and load spilling. It
includes a function to ensure stability while rotating (swing-lock control of rear wheels)and a function to automatically control the angle of the mast when lifting cargo high up(mast tilt control).
*6: This test trial of baggage transportation in actual airport operations was the first of its
kind conducted in Japan after the application of the Japanese government’s guidelines
for autonomous operations within an airport.

■ North American Market

With a year-on-year decline in the North American lift truck
market in 2020, Toyota Industries posted combined unit
sales of the TOYOTA and RAYMOND brands of 80,000
units, down 13% from the previous fiscal year, but still
remained the market share leader*7 in 2020. Meanwhile,

parts sales and orders for after-sales services remained
strong.
In 2020, Toyota celebrated 30 years of manufacturing in
the United States, with cumulative total production
surpassing 700,000 units. Along with enhancing the productoffering with the release of new electric lift trucks and ahigh-capacity internal-combustion lift truck, Toyota
proactively enhanced
optional features that are
based on ergonomics andserve to increase operability
and reliability. In response to
the growing need toautomate intralogistics,
Toyota launched AGFs fittedwith the latest navigation
system using Light Detection
and Ranging (LiDAR)
New AGF
technology. Additionally,
efforts related to the After Sales Service Evaluation andCertification (ASEC) program designed to increase thecompetitiveness of dealers and an initiative to improve
operational efficiency in a systematic manner haveproceeded steadily and produced positive results.
Raymond has also been active in releasing new
products and enhancing functionality to satisfy various
customer needs. The product lineup has been enhancedwith the release of an electric low lift truck with battery
management functionality andan automated lift truck for
intralogistics, which boasts
improved telematics
functionality and utilizes avision-guided technology of apartner company. Raymondhas also started sales of abattery management systemusing next-generation lithiumion batteries that have shorter
charging time and are morecompact and highly functional
Next-generation lithium-ion battery
than conventional lead-acidbatteries. Paired with theiWAREHOUSE fleet management system, it will increase theproductivity of logistics sites, optimize battery usage andsimplify maintenance work, thereby allowing cost reductions
throughout the lift truck lifecycle.
We have established a program to provide funding touniversity research projects with the aim of facilitating thedevelopment of next-generation technologies in thematerials handling equipment industry. In 2020, we
strengthened our collaboration with two universities forrespective research projects.
We will continue to leverage the strengths of each brandand reinforce technological development by utilizing
automation, telematics and other advanced technologies.
In addition, through closer collaboration with the Logistics
Solutions Business, we will accurately respond to
customers’ needs for greater logistics efficiencies.
*7: Survey by Crist Information & Research, LLC, 202029

■ European Market

Following the previous year, sales in the European lift truck
market continued to decrease in 2020. Toyota Industries
posted unit sales of 77,000 units in fiscal 2021, down 18%
from the previous fiscal year. Conversely, orders for aftersales services and sales of parts remained steady.
In Europe, increases in logistics volume and small cargodelivery as well as a requirement for a shorter delivery time
have pushed up the need for increasing the efficiency oflogistics operations, mainly those of lift trucks, at distribution
centers. As a response, Toyota Industries offers the I_Site
fleet management system that connects more than 150,000
lift trucks to a network. Besides lift trucks’ operational
status, the system collects various information, such asdata on impact detection and battery consumption. By
analyzing the information and sharing the results withcustomers, the system not only achieves better lift truck
operation and lower costs but also helps to increase safety
awareness.

Notional image of Toyota I_Site

In terms of products, we are enhancing the lineup ofmodels equipped with lithium-ion batteries. We are adding
these models to low lift trucks and counterbalanced lift
trucks in order to meet the diversifying needs of customers.
Among internal-combustion lift trucks, a model fitted with
our internally developed engine that satisfies the latest EU
regulations is highly recognized in the market.

New electric low lift truck

Going forward, we will work to enhance the lineup ofmodels offering excellent environmental performance. At thesame time, to help customers achieve higher logistics
efficiencies we will respond to the needs for connected andautomated lift trucks, which are expected to grow further inthe future, by utilizing the latest technologies.

30

Toyota Industries Report 2021

■ ALOMA*8 and Chinese Markets

Toyota Industries covers the ALOMA markets of some 60
countries in Asia, Latin America, Oceania, the Middle East
and Africa as well as the Chinese market. We are serving
these markets with a lineup consisting of TOYOTA, BT,
RAYMOND and Tailift brands.
The environment surrounding materials handlingequipment in the ALOMA and Chinese markets underwent
an unprecedented change in 2020. These markets
temporarily turned downward from the previous year due tothe rapid spread of COVID-19, but many ALOMA markets
already began to recover in the latter half, showing a 96%
year-on-year growth over the full term. Similarly, the Chinese
market was quick to indicate a dramatic recovery and grew
sharply by 137% over the previous year. The diversificationof market needs has also accelerated further in the ALOMA
and Chinese markets, as seen in strong environmental
consciousness among morecustomers and a growing
awareness of logistics costs.
Against this backdrop, we
have been making various
efforts, such as initiating
sales of Enelore, a newlithium-ion battery
replaceable with lead-acidbatteries used in ourelectrified lift trucks,
releasing small electric handpallet trucks in more
New Enelore lithium-ion battery
countries and promoting theused lift truck business.
Jointly with dealers, Toyota Industries operates a
program to promote sales activities with a focus on logistics
improvement solutions and has been making proposals tovisualize customers’ logistics sites, improve their safety andreduce costs. Through the program, we have beenstrengthening our relationships of trust with customers andhave successfully expanded our business domains.
In the field of after-sales services, we have established astructure to provide swifter and more efficient after-sales
services by centrally and digitally managing information onlift trucks owned by customers and their history of repairs.
We are putting in place a structure to offer extensive aftersales services by establishing a system to certify dealers’
after-sales service facilities and offering programs to train
service staff so that customers can use our products withan increased sense of reassurance.
As a total solutions partner capable of satisfying diverse
logistics needs, we will make concerted efforts with dealers
in each country to undertake various initiatives.
*8: ALOMA is a Toyota Industries term for Asia, Latin America, Oceania, Middle East andAfrica.

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities

Activities of TALG
■ Logistics System Engineering Department of
Toyota Material Handling JapanA sharp growth of the
e-commerce market inrecent years has increased
inquiries and orders for large
distribution centers. In
response, we are striving toprovide logistics solutions
that cover the entire logistics
process, encompassing thesystems and equipment ofVanderlande and Bastian.
Automated lift truck operating in afreezer warehouse
Logistics automation, inparticular, has drawn muchattention since a need for contactless operations grew instep with the spread of COVID-19.
In 2020, we put an automated lift truck to practicaluse in a freezer warehouse for the first time in Japan andlaunched a feasibility test jointly with Nichirei Logistics
Group Inc. Additionally, we have conducted a feasibility testwith TRUSCO Nakayama
Corporation on the AiR-T
autonomous intelligent
mobile robot that assists
picking operations in
distribution centers. At the
Aichi Robot Showcase, aproject of Aichi Prefecture topromote the implementationof service robots in society,we made proposals on
the use of the AiR-T in
AiR-Tan office building and at acoffee shop.
In dealing withdiversifying customer needs,
we have taken a stake in+Automation Inc., a startup
company providing awarehouse robotics system
subscription service.
Through this arrangement,
we have been examining
t-SORT sorting robot
new sales methods andhave reinforced the lineup ofsorting robots used in distribution centers.

■ Bastianreceiving orders for anumber of large projects infiscal 2021.
Capitalizing on its
strengths in software andother technology
development, Bastian has
been promoting
collaboration with othercompanies in the Toyota
System operating in an e-commerce
Industries Group. For
distribution center
example, Bastian hasreceived, jointly with
Vanderlande, an order for a project of a leading e-commerce
operator in North America and started to provide software
programs to the Logistics System Engineering Departmentof TMHJ. In North America, Bastian has also been
accelerating its offering of logistics solutions to lift truckusers by reinforcing collaboration with dealers of the
TOYOTA and RAYMOND brands.

■ Vanderlande

Vanderlande, offering logistics solutions globally, hasreceived many orders from leading companies in various
business categories for their projects to establish
distribution centers, capturing growing needs prompted by
COVID-19 for more advanced logistics in the e-commerce,
retail and parcel services sectors. For the warehouselogistics and parcel/postal services businesses, Vanderlande
has been accelerating system development respectively
optimized for operations ofindustry’s top companies
and focused businesscategories.
In the airport business,amid difficult operating
conditions Vanderlande
obtained orders for systems
for new terminals fromexisting airport customers aswell as long-term servicing
contracts based on its
High-speed sorting system used in the
e-commerce and apparel sectors
long-standing relationshipsof trust.
Vanderlande is also promoting collaboration to further
augment relationships with other companies within the
Toyota Industries Group, working together with the Logistics
System Engineering Department of TMHJ and Bastian to
introduce its systems into the markets in Japan and North
America, respectively.

Bastian, mainly operating in the North American market,
has been responding to the logistics automation needs ofcustomers in a broad range of fields, including the
manufacturing, retail and e-commerce sectors, andreceiving an increasing number of orders.
Based on a wealth of know-how accumulated in past
projects, Bastian has increased its capabilities for large
system development and integration, thereby successfully
Airport baggage handling system

31

Automobile

Link toproduct
details

In the fields ranging from vehicle to engines, car air-conditioning compressors andelectronics, Toyota Industries continues to meet the expectations and trust of its
customers.

Business Characteristics

Net Sales

Strengths• An agile structure to undertake all aspects from planning anddevelopment to production within a plant (Vehicle)• Highest-level production efficiency and quality among all Toyotaaffiliated automobile body manufacturers (Vehicle)• Know-how on the development and production of diesel engines
and turbochargers (Engine)• Highly efficient production of high-quality gasoline engines,
including those for use in hybrid electric vehicles (HEVs) (Engine)• Excellent product development capability centered around fuelefficiency and car electrification (Car air-conditioning compressor)• Global top-share*¹ products for use in a full range of vehicles, frominternal-combustion vehicles to HEVs, plug-in hybrid electricvehicles (PHEVs), battery electric vehicles (BEVs) and fuel cellelectric vehicles (FCEVs) (Car air-conditioning compressor)

200

0

17

18

19

20

21

17

18

19

20

21

18

19

20

21

Engine Sales(Thousand units)

800
600

• Sales expansion in each sector in line with growth of the automobile
market

200

400

0
(FY)

Compressor Sales(Million units)• A drop in product competitiveness due to the yen’s appreciation ora rise in raw material costs

30• Suspension of production caused by supply chain disruptions

20*1: Survey by Toyota Industries Corporation

4.7 billion¥

300• Increasing needs for fuel-efficient products due to stricter
environmental regulations and growing environmental
consciousness• Customers becoming less willing to buy fuel-efficient products
following less stringent environmental regulations

FY2021

Vehicle Sales(FY)• Shrinking of the automobile market caused by economic slowdown

FY2021(Thousand units)• Higher technological capabilities accumulated through thedevelopment and production of products for Toyota Motor
Corporation (TMC), external sales and internal use (Electronics)

Risks

FY2020¥17.2 billion

591.6 billion

100

Opportunities

FY2020¥613.8 billion¥• Monozukuri (manufacturing) using equipment created in-house to
produce high-quality products and flexibly accommodate changes
in production volume (Car air-conditioning compressor)• Development, production and top-level quality of electronic partsand devices for electrified vehicles (Electronics)

Operating Profit

10
0
(FY)

32

Toyota Industries Report 2021

17

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities

VehicleMedium-Term Direction of BusinessWe will contribute to TMC as a development andproduction base of compact sports utility vehicles (SUV)
by leveraging our comprehensive strengths derived fromthe highest level of safety, environment, quality, cost anddelivery (SEQCD) among all Toyota-affiliated automobile
body manufacturers and through greater collaboration
within the Toyota Industries Group.

Business Overview in Fiscal 2021

In fiscal 2021, sales of the RAV4 posted an increasein Japan, which was offset by a decline in sales
elsewhere. As a result, unit sales remained on parwith the previous fiscal year at 323,000 units. Net
sales decreased by ¥1.6 billion, or 2% year on year,to ¥88.3 billion.

Nagakusa Plant to Initiate Production of a PHEV
Model Added to the RAV4 Lineup
For the RAV4, which became the first Toyota vehicle in a
decade to receive the Car of the Year Japan 2019-2020
award, a PHEV version was added to the lineup in June
2020, and Toyota Industries’ Nagakusa Plant initiatedproduction of the new model. The RAV4 PHV is equippedwith a high-capacity, high-output lithium-ion battery, which
achieves a driving range of 95 km in the EV mode. The model
also realizes powerful acceleration and boasts greater fuelefficiency, thus offering superior environmental performance.
Moreover, a system to feed power externally, useful during
disasters and for outdoor activities, is a standard feature of
the RAV4 PHV.
The Nagakusa
Plant is the only
plant in Japanto manufacture
the RAV4 PHEV.
As such, we willcontinue to help
promote car
electrification in
RAV4 PHV
the future.

HARRIER Designed and Developed by Toyota
Industries Selected as Good Design
Best 100
The new HARRIER released by TMC in June 2020 was
included in the 2020 Good Design Best 100 under theGood Design Award program, receiving high recognition
for its exterior and interior designs that are both dynamic
and sophisticated, bringing every detail together at a highquality level.

In addition to the design of the vehicle’s upper body,
Toyota Industries also developed its outer shape and interior.
In order tocontinue meetingcustomers’
expectations,
we will work tostrengthen ourvehicle planningand development
capabilities andensure quality.
HARRIER selected as Good Design Best 100

Presenting a RAV4 Concept Model at Tokyo Auto
Salon 2021
We have been engaging in activities to turn the RAV4, forwhich Toyota Industries carries out from development toproduction, into an even more exciting and appealing SUV.
As part of these activities, we presented the RAV4 5D*2ADVENTURE at Tokyo Auto Salon 2021. It is a concept
model exclusively created for mountain rescue operations
based on a survey on professional-use vehicles running in aharsh environment. In order to reach a destination reliably andsafely to start a rescue operation, the model is built from a
professional viewpoint and incorporates various equipment
and functions to enable driving in mountain areas underrough weather. We intend to utilize the outcome of these
activities in future development of the RAV4.
*2: Features five action patterns (“dimensions”) of rescue team members, enabled by thevehicle’s unique equipment and functions.

RAV4 5D-ADVENTURE

EngineMedium-Term Direction of BusinessIn line with the adoption of the Paris Agreement,
an international framework to address climatechange issues in 2020 and beyond as well as theannouncement by some countries to accelerate efforts
toward carbon neutrality, there is a growing demand forengines with even greater fuel efficiencies and cleaner
emissions. Amid this environment, we aim to contributeto a reduction of CO2 emissions by meticulously
meeting customer needs for diverse engine systems
and developing new, globally top-level technologies andproducts that also respond to car electrification.

33

Business Overview in Fiscal 2021

Unit sales in fiscal 2021 totaled 765,000 units,a decrease of 42,000 units, or 5%, from theprevious fiscal year due to declines in sales of GD
diesel engines and M20A gasoline engines. Thanks
to an increase in sales of foundry parts, however,net sales increased by ¥1.4 billion, or 1% year on
year, to ¥139.9 billion.

number of models equipped with this turbocharger.
We will further improve the quality and productivity of ourgasoline engines and turbochargers used in these engines
and contribute to the creation of “ever-better cars” by TMC.
*3: Development policy and method for vehicle creation based on a modular platform

Engines for Automobiles■ Diesel Engines

Needs for powertrains are becoming diverse dependingon the region. The requirement is also growing mainly inemerging countries for diesel engines, which have high fuelefficiency and excellent torque at a low speed, as a power
unit suited for SUVs and such commercial vehicles as pickup
trucks. Toyota Industries’ diesel engines are mounted in avariety of vehicles, including the Toyota Land Cruiser series,
the world’s renowned full-fledged four-wheel drive (4WD)model, and TMC’s Innovative International Multipurpose
Vehicle (IMV) series targeting emerging countries. Theirhigh performance and reliability have gained strong market
recognition. Currently, our mainstay products are in-line
4-cylinder GD diesel engines and V-type 8-cylinder VD
diesel engines. The GD diesel engine is equipped with aturbocharger that provides significantly better performancethrough the adoption of new technologies, such as a ballbearing-type system.
As a global engine supplier, we will continue to undertake
entire operation from development to production andsupply diesel engines that can win the heart of customers
worldwide.

2.5-liter A25A engine for HEVs

Turbocharger for gasoline engines

Engines for Industrial Fields
Toyota Industries’ engines are highly renowned for theirreliability and excellent environmental performance inindustrial fields as well. These engines are used for a wide
variety of applications, including our lift trucks, and adopted
by many manufacturers of GHPs*4, CHPs*5, generators andconstruction machinery. These engines offer downsized
displacement compared with conventional models withequivalent output, resulting in higher fuel efficiency, cleaner
emissions and a reduction in size.
*4: Short for gas heat pump; air conditioner driven bya gas engine*5: Short for combined heat and power;
co-generation system

Link toproduct
details

Toyota 1ZS diesel engine and turbocharger

TOPIC
High-output GD diesel engine and new turbocharger■ Gasoline Engines

Our Toyota New Global Architecture (TNGA)*3 gasoline
engines, namely the 2.5-liter A25A and 2.0-liter M20A, aremainly fitted in the RAV4 and HARRIER, which are achievingrobust sales. Developed based on the TNGA concept,
these engines offer both excellent driving performance andenvironmental performance. Responding to the advancementof car electrification, we have also added an HEV version of
the A25A engine to our lineup.
In April 2021, we also started production of aturbocharger for gasoline engines mainly fitted in the Lexus
RX and Crown. We are working to steadily increase the34

Toyota Industries Report 2021

Participating in a Verification Test on
Engines for River Drainage Pumps
In April 2021, Toyota Industries was selected as anengine manufacturer for a project to develop,
introduce and utilize mass product drainage pumps,
for which the Ministry of Land, Infrastructure, Transport
and Tourism publicly solicited participants. The project
aims to demonstrate a new system to operate riverdrainage pumps, which uses multiple diesel enginesof mass-produced vehicles instead of a conventional,
dedicated large diesel engine. Toyota Industries’ 1GD
diesel engine has been approved for the project.

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities

Car Air-Conditioning Compressor■ Strengths of Toyota Industries’ Electric
Compressors
CSR Material Issue

Business Overview in Fiscal 2021
In fiscal 2021, unit sales of car air-conditioning
compressors decreased 3.52 million units, or 11%,from the previous fiscal year to 27.51 million units due
mainly to lower sales in North America and Europe.
Net sales were down ¥26.6 billion, or 8%, from theprevious fiscal year to ¥301.6 billion.

Development Efforts Centered around
Fuel Efficiency and Car Electrification
Even though growth in the car air-conditioning compressor
market is currently slowing down due to the stagnating
automobile market, we expect continued growth over the
medium term on the back of expanding automobile sales andan increase in the number of vehicles fitted with an air
conditioner. Unit sales of electrified vehicles, in particular, areexpected to grow significantly for the foreseeable future as
automakers aggressively roll out new models toaccommodate stricter fuel efficiency regulations in respective
countries and expanding customer needs. Amid thisenvironment, we will further reinforce product developmentfor not only compressors for internal-combustion vehicles,
which are still mainstay products as of now, but also
compressors for electrified vehicles, for which we anticipate
stronger demand.

■ More Compressors with High Fuel Efficiency
to Receive Off-Cycle Credits

More stringent fuel efficiency standards have been enforced
across the world, pushing the need for higher fuel efficiency
both for internal-combustion vehicles and electrified vehicles.
In the United States, our SES series for internal-combustion
vehicles became the industry’s first compressor to beapproved under the country’s off-cycle credits program. The
program gives off-cycle credits to technologies that caneffectively improve fuel efficiency. Since receiving the first*6
accreditation, we have acquired credits for our compressors
for electrified vehicles as well, and the number of models
equipped with these compressors has been growing.

*6: Survey by Toyota Industries Corporation

Our Strengths inElectric Type

Common to all electriccompressors

In the Car Air-Conditioning Compressor Business,
we leverage our core compression technology andhave become an innovative component supplier amid
an expected advancement in car electrification andautonomous technology.
We will further enhance our capability to develop
products that offer excellent fuel efficiency, quieter
operation, compactness and light weight. At the sametime, with the aim of satisfying needs of a broader
variety of customers, we will utilize our accumulated
technologies to expand our development domain into
core components for drive systems.

Electric compressors
for BEVs

Medium-Term Direction of Business

Since launching the world’s first*6 mass production of electriccompressors in 2003, our products have been used in HEVs,
PHEVs, BEVs and FCEVs of Toyota, Ford, Daimler, Honda,
Nissan and other automobile brands. We have been
undertaking efforts to further increase the appeal of thesecompressors based on our technology and know-how
accumulated through the development of a broad range ofmodels. Among various electrified vehicles, BEVs in particular
are facing the growing need for higher electric efficiency whilea heater is turned on as well as for cooling heat-emitting key
components, such as batteries. In response, we have beendeveloping and manufacturing high-capacity types byleveraging our strengths represented by high efficiency andreliability.
In addition to enhancing product appeal, we plan tofurther reinforce our capability to support automakers, forexample, by proposing solutions to issues related to an
automobile as a whole, and ultimately expand sales.

Our Initiatives

Broad product lineup

Applicable to a variety of vehicle
models from compact to luxury cars

Higher efficiency in power
consumption / Lower noise/ Less vibration

Design with our patented
technology while ensuring productquality and performance in mass
production by leveraging precise
machining/assembly technology

Support capability toautomakers

Proposal of problem solutions toautomakers

Prevention of radio
disturbance on homeelectrical appliances whilecharging BEVs

Improvement of inverter performanceachieving lower electromagnetic
noise

Improving electric
efficiency while a heater isturned on

Development of high-efficiency
compressors for heat pump air
conditioning system

Cooling such devices asbatteries

Expanding our business field todriving components with reliability■ Utilizing Compression Technology to Extend
Our Role into the Field of Core Components
for Drive Systems
CSR Material Issue

Going a step beyond the cooling functionality of car airconditioning compressors, we have utilized our compression
technology accumulated to date to develop and manufacture
air compressors, which take in and compress air to efficiently
supply the oxygen necessary to generate power, as well ashydrogen circulation pumps. We aim to play a role in realizing
a hydrogen-based society by contributing to an improvementin the performance of FCEVs through the development ofthese components.

35

TOPIC

Production-Related Strengths Underpinning
Quality and Performance

The new MIRAI FCEV released by TMC in December
2020 uses an air compressor and hydrogen circulation
pump newly developed by Toyota Industries. The aircompressor is the world’s first*7 mass-produced
product to adopt a centrifugal method using a
movable roller-type traction drive unit. Not only does
the product achieve a 24% compression efficiency
improvement, 35% weight reduction and 45% size
reduction compared with the previous model but it
also contributes to the higher output of the new
MIRAI. The hydrogen circulation pump adopted a newseal structure that offers better corrosion resistance.
This makes it possible to change the material used forthe pump from stainless steel to aluminum, thereby
realizing a 41% weight reduction.

High-precision machining and assembly technologies
are essential in realizing high quality and the superior
performance of products. Toyota Industries realizes highspeed and high-precision machining by leveraging its
know-how accumulated through responding to the stringent
demands of automakers worldwide and by developing
devices from processing machines to associated cutting
tools in-house.

Establishing Stronger Global Production and
Supply Structures
In step with the move toward more stringent fuel efficiency
regulations and car electrification, the car air-conditioning
compressor market is expected to witness fluctuations
in demand for compressors both for internal-combustion
vehicles and electrified vehicles. In response, we arebuilding a production structure less vulnerable to changes in
production volume through such measures as automating
our plants to save labor, designing mixed lines that enable
the production of a wide variety of products and creating aframework to increase production capacities in a phasedmanner.
Meanwhile, we expect the rapid spread of electrified
vehicles in China driven by the country’s new energy
vehicles (NEV) regulation*8. Accordingly, we will make sure tocapture booming demand by promoting the local productionof electric compressors. We have already initiated local
production at TD Automotive Compressor Kunshan Co.,
Ltd. (TACK) in March 2020 and at Yantai Shougang TD
Automotive Compressor Co., Ltd. (YST) in June 2021.

*7: Survey by Toyota Industries Corporation

Oxygen-supplying air compressor

Hydrogen circulation pump

*8: Regulation in China mandating automakers to produce a certain percentage of BEVs andother new energy vehicles

Worldwide Bases of Car Air-Conditioning Compressors (As of March 31, 2021)

TDDK
DNDE

Germany

Germany

YST

DICH

MACI

China

China

U.S.A.

DIAM

U.S.A.
TICO

DNTS

Japan

Italy
SUBROS

TACK

India

China

TACG

U.S.A.
TICA

U.S.A.

TACI

Indonesia

DNBR

BrazilConsolidated production bases

Licensed manufacturers

Technical service stations

Toyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1*9 position in global sales.
*9: Survey by Toyota Industries Corporation

36

Toyota Industries Report 2021

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities

Electronics
Medium-Term Direction of BusinessCar electrification is steadily progressing in keepingwith the enforcement of more stringent environmental
regulations and growing energy-saving consciousness
among customers. The Electronics Division willcontribute to car electrification in a broad range offields, from offering on-board power source devices toimproving social infrastructure through the provisionof charging stands and systems to feed electricity
externally.

In addition, we have been
contributing to car electrification
also in terms of infrastructure bydeveloping public charging stands for
PHEVs and BEVs.
*10: Survey by Toyota Industries Corporation

Sub-stand

Charging stand for PHEVs and BEVs

Business Overview in Fiscal 2021
Net sales of electronics products expanded, primarily
supported by sales of on-board chargers for PHEVs
and BEVs.

Contributing to Car Electrification
Toyota Industries develops and manufactures on-board
power source devices, including DC-DC converters, onboard chargers and AC inverters, and charging stands. We
sell these products mainly to TMC and other automakers
across the world.
A DC-DC converter converts the high voltage of onboard batteries into a lower voltage level to supply power tostandard electrical devices such as lights and wipers. Our
DC-DC converters are fitted in the Prius, Aqua and othermajor electrified vehicles. By utilizing such technologies as
the world’s first thick copper substrate*10, we have reduced
the product volume and weight.
An on-board charger converts AC voltage from thepower grid into DC voltage in vehicles and is necessary forcharging PHEVs and BEVs, for which the market is expected
to expand in the future. We offer chargers compatible with awide range of voltages to enable their use in various parts of
the world.

DC-DC converter

Main control
standHelping to Increase the Competitiveness of Our
Electrified Products
We will leverage our technology and know-how cultivatedin the development of vehicle power source devices toengage in the development of electronic components in otherbusinesses as well, such as materials handling equipment
and textile machinery, and to increase the appeal of our
products. Through these efforts, we intend to spur greatersynergistic effects among our businesses in moving ahead
with electrification.

Use of an Electrified Vehicle as a Power Source
during a Disaster
CSR Material Issue

In recent years, there has been a growing public attention to
the use of high-capacity batteries of electrified vehicles asa power source. The 1.5-kW type AC inverter, in particular,
can operate appliances that require more power, such as
rice cookers and hot plates, and has drawn much attention
as an emergency power source in a disaster in addition to
camping, outdoor events and other applications.
In July 2020, we conducted a disaster prevention drill
using the power source functionality of an AC inverter, which
is fitted in the RAV4 PHV manufactured at the Nagakusa
Plant. During the drill, we used the AC inverter to power
multiple electric appliances simultaneously, such as a radio,
TV, notebook PC, smartphone charger, lighting device,electric fan, refrigerator, heater and hot-water pot, andverified its usefulness as a power source.

On-board charger

Disaster prevention drill using AC inverter’s power source functionality

37

Textile Machinery
Carrying on the philosophy of founder Sakichi Toyoda, which reflects his strong
commitment to manufacturing, Toyota Industries responds to a broad range of needs with
its extensive product lineup, from air-jet looms, for which we enjoy the world-leading
market share* in unit sales, to ring spinning frames and roving frames.

Business Characteristics
Strengths• Broad product lineup both in the spinning and weaving machinery
fields• World-leading market share* in unit sales of air-jet looms

Opportunities• A rise in textile demand in line with an increase in the world
population• Further increasing applications in industrial textile products• Increasing need for high-quality and highly functional yarn andtextile products, following the economic growth of emerging
countries

Risks• Changes in each government’s policies concerning promotion of
the country’s textile industry• Weaker sales due to intensifying competition• A decline in capital investment due to economic slowdown and raw
cotton and/or yarn price fluctuations

Medium-Term Direction of BusinessWith growing environmental consciousness worldwide,
needs are expected to increase further for textile
machinery offering superior environmental performance.
Toyota Industries’ products are highly acclaimed bycustomers for their excellent reliability and productivity
as well as energy-saving performance. We willcontinue to develop energy-saving and other innovativetechnologies and seek to achieve further growth andevolution as a leading manufacturer of textile machinery.

Business Overview in Fiscal 2021
On the whole, the environment surrounding the textile
machinery market continued to be difficult. Unit salesof air-jet looms decreased 2,100 units, or 31% year
on year, to 4,700 units. Combined with a decrease insales of quality measurement instruments for fiber,yarn and fabric, net sales were down ¥20.9 billion, or
34%, from the previous fiscal year to ¥40.8 billion.

Growing Needs for Air-Jet Looms
Toyota Industries’ air-jet looms are adopted by customers in
China, India and many other countries. Produced fabrics areused broadly for towels, shirts and other clothing purposes

38

Toyota Industries Report 2021

* Survey by Toyota Industries
Corporation

Net Sales

Operating Profit

FY2020

FY2020¥61.7 billion¥2.9 billion

FY2021

FY2021• Global, well-developed service network• Ability to develop products that excel in reliability, energy-saving
performance and versatility

Link toproduct
details

40.8 billion

1.1 billion)¥(¥

Air-Jet Loom Sales(Thousand units)

10
8
6
4
2
0

(FY)

17

18

19

20

21

as well as in industrial products such as vehicle airbags.
Recently, the need has been on the rise for fabrics such as
woven glass fiber for use in smartphone substrates, and it
is anticipated that applications for air-jet looms will expand
further.

MOSAIC Yarn Spinning Device Receiving anAward at the National Commendation forInvention
Our MOSAIC yarn spinning device, offered as an option to
the RX300 high-speed ring spinning frame, received theMinister of Economy, Trade and Industry Award at the 2020
National Commendation for Invention. The award recognized
the device’s ability to flexibly change the mixing ratio of
two different types of roving materials in one yarn and tocompletely switch over between the two types, such as bychopping and reconnecting the roving materials. The resulting
MOSAIC yarns enable unconventional, diverse fabric designs,
helping to create a new market in the textile industry, mainlyin the apparel field.
Yarn made using the MOSAIC yarn spinning device
Material A +Material B

Material B

Material A

Material B

A complete switchover between two colors (types) is
possible with varying thickness.
The gradation of two colors (types) is possible via a
gradual switchover.

<Reference: Normal yarn>
Consistent thickness and twisting

Product sample made with
MOSAIC yarn

Promotion of ESG Initiatives
Further Promoting Initiatives to Sustain
Growth in the Areas of Governance,
Society and the Environment
Corporate Governance Structure
Cross-ShareholdingsInternal Control System
Compliance
Information Security
Risk Management
Messages from Outside Directors

Corporate Governance

P. 39–42
P. 42
P. 42
P. 43–44
P. 44–45
P. 45–46
P. 47

Toyota Industries strives to enhance its corporate value in a stable manner over the long term and maintains society’s
trust by earnestly fulfilling its social responsibilities in accordance with its Basic Philosophy. To that end, Toyota
Industries endeavors to further enhance its corporate governance in its efforts to maintain and improve management
efficiency and the fairness and transparency of its corporate activities.
changes in the business environment and have been working
to augment management oversight and ensure the timely
disclosure of information.
More specifically, the following basic policies drive ourinitiatives.
(1) We seek to ensure shareholders’ rights and equality.
(2) We seek to promote appropriate collaboration withstakeholders other than shareholders (including
customers, business partners, creditors, local
communities and employees).
(3) We seek to conduct appropriate information
disclosure and ensure transparency.
(4) We seek to perform the roles and duties of the Boardof Directors appropriately in order to make decisions in
a transparent, fair, quick and resolute manner.
(5) We seek to promote a constructive dialogue withshareholders.

Corporate Governance Structure
Basic Perspective on Corporate GovernanceToyota Industries regards the most important managerial
task is to earn trust broadly from society and enhance ourcorporate value on a stable, long-term basis. We aim to
do this task based on our Basic Philosophy and earnestly
fulfilling our social responsibilities. Our basic focus is on
contributing to the creation of an enriched society throughbusiness activities, and we believe it is essential to cultivate
good relationships with stakeholders, including shareholders,customers, business partners, creditors, local communities
and employees.
Accordingly, we strive to enhance our corporate
governance in order to maintain and improve management
efficiency, fairness and transparency. For example, we haveestablished a structure to quickly and flexibly respond to

Shareholders’ Meetings
Selection/Dismissal

Selection/Dismissal

Reporting

Cooperation

Independent Auditors

Reporting

Audit & Supervisory Board
ReportingAccounting
Audit

Selection/Dismissal

Executive Compensation
Committee

Board of Directors

Exchange of Opinions
Appointment/
Monitoring

Executive Appointment
Committee

Management Committee(Deliberates on important matters from management’s perspective)

Discussion/
ReportingMonitoring

Selection/Dismissal
Cooperation

Management Council

Direction/
Supervision

Toyota Industries’ Corporate
Governance Reports are available on
its Website (in Japanese).

Monitoring

Cooperation*1: Functional
Meetings

President

Business Operation Committee(Follows up on the execution of business operations)Audit & Supervisory
Board Office

Link tothe report

Reporting
Audit Dept.

(Reports on and confirms execution of business operations)

Human Resources

CSR

Quality

Environmental

Production

Export Transaction
Controls

Procurement

Safety and HealthTechnologies

Profit Improvement

Internal Audit

Functional Meetings*1, Committees*2
Senior Executive Officers

Business Divisions/In-House Company/Departments
Subsidiaries/Affiliates*2: Committees

These entities deliberate andfollow up on issues in respective areas.

(As of June 10, 2021)

39

Implementation Structure
Toyota Industries convenes monthly meetings of the Boardof Directors to resolve important management matters andmonitor the execution of duties by directors. We appoint
outside directors who have a wealth of experience andknowledge concerning business management. They attend
meetings of the Board of Directors and give opinions
and ask questions as deemed necessary based on theirindividual, wide-ranging experience and insights related
to the management of globally operating companies andmonozukuri (manufacturing). Through this supervisory
function of outside directors, we ensure the legality andvalidity of the Board’s decisions as well as directors’
execution of duties from an objective perspective. The
Management Committee, which is composed of directors at
the executive vice president level and above as well as senior
executive officers and other executives, deliberates on avariety of issues concerning important management matterssuch as our corporate vision, management policies, mediumterm business strategies and major investments.
Toyota Industries has a divisional organization system,with significant authority delegated to each business division.
For especially crucial matters, however, we have establishedthe Business Operation Committee to enable the president
to meet with the heads of each business division regularly
to monitor and follow the status of their business execution.
At meetings of the Management Council, directors, audit &supervisory board members and senior executive officers
convene to report and confirm the monthly status ofbusiness operations and share overall deliberations at
Board of Directors meetings and other management-related
information.
In addition, issues pertaining to human resources, quality,
production, procurement and technologies are discussed
at the corresponding functional meetings. We have also
put in place committees to deliberate on more specificmatters, such as corporate social responsibility (CSR), theenvironment and export transaction controls. These functional
meetings and committees discuss important matters andaction themes in respective areas. Moreover, we strive tomaintain and improve internal controls by establishing the
Audit Department and conducting internal audits of Toyota
Industries’ business divisions and departments as well as our
subsidiaries.

Selection and Dismissal of Senior Management
and Appointment of Director and Audit &Supervisory Board Member Candidates■ Policies for Selection (and Dismissal) of Senior
Management and Appointment of Director Candidates
We carry out comprehensive evaluations from theviewpoint of placing the right persons in the right positions.
We seek a balance between making sound and quick
decisions, managing risk appropriately and monitoring
execution of business operations and covering a specificfunction or business division of Toyota Industries.
In appointing audit & supervisory board member
candidates, we also perform comprehensive evaluations
from the viewpoint of placing the right persons in the rightpositions, while ensuring a balance among the financial,accounting and legal insights, knowledge on our business40

Toyota Industries Report 2021

fields and the diversity of perspectives on corporate
management.
■ Method of Determination
Based on these policies, we review proposals, exchange
views and confirm details at the four-member Executive
Appointment Committee, which consists of Toyota
Industries’ chairman, president and two independent
outside directors, and submit these proposals to the Boardof Directors for resolution.

Appointment of Independent Members ofManagement
As a publicly listed company, Toyota Industries strives toensure the fairness and transparency of management.
Following the Securities Listing Regulations stipulated by
the Tokyo Stock Exchange and Nagoya Stock Exchange,
respectively, to further enhance our corporate governanceToyota Industries has appointed as independent membersof management two outside directors and two outside audit& supervisory board members who are deemed to have noconflicts of interest with our shareholders.

Determination of Compensation for Directors andAudit & Supervisory Board Members■ Matters Related to Policy for Determining Individual
Compensation for Directors● Basic Perspective• We ensure fairness and transparency.
• We emphasize incentives for achieving better businessperformance and sustainable growth, link compensation
with the business performance of Toyota Industries andreflect individual duties and performance.
● Compensation Structure• Compensation for directors consists of fixedcompensation (basic compensation) and bonuses(compensation linked to business performance).
• A bonus is further divided into a portion linked to a single
fiscal year indicator and a portion linked to medium-term
indicators. However, bonuses for outside directors do
not include the portion linked to medium-term indicators.
● Method of Determining Individual Compensation• We have established the Executive Compensation
Committee comprising four members, namely Toyota
Industries’ chairman, president and two independent
outside directors.
• To ensure the Committee’s objectivity and transparency,
we have a rule that independent outside directors makeup a half or more of the total number of its members.
• The Executive Compensation Committee deliberates
on a policy for determining individual compensation for
directors, proposed compensation for each director andimportant matters related to compensation.
• The Board of Directors votes on the policy based on
the results of deliberations made at the Executive
Compensation Committee.
• From the standpoint of determining directors’ individualcompensation amounts flexibly and swiftly, the Board of
Directors delegates the related decision-making authority
to the president (or to the chairman).
• The president (or the chairman) determines the directors’
individual compensation amounts based on the policy

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Corporate Governanceand the results of deliberations made at the Executive
Compensation Committee.
● Policy for Determining Fixed Compensation, Bonuses
and Their Ratio—Fixed Compensation—• Fixed compensation for directors consists of monthly
salaries, which are paid periodically while in service.
• We determine a reasonable level of individualcompensation amounts while giving consideration toother companies’ compensation levels as well as therank and duties of each director.
—Bonuses—• We pay a bonus at a certain time after the end of theGeneral Shareholders’ Meeting in each fiscal year.
• For the portion linked to a single fiscal year indicator,
we use consolidated operating profit as the indicator andcalculate the amount of bonuses for each rank basedon the amount of consolidated operating profit for theprevious fiscal year.
• For the portion linked to medium-term indicators,
we evaluate such management indicators as operating
profit ratio of the past three fiscal years and calculate
the amount of bonuses for each rank based on theevaluation results.
• We have selected the said indicators because we havedetermined that they appropriately align with the basic
perspective of our policy for determining individualcompensation for directors.
• In determining the amount of bonuses, we giveconsideration to dividends, employees’ and othercompanies’ bonus levels, past records of bonus
Breakdown of Executives’ Compensation
Bonus(compensation linked tobusiness performance)

About

40%

¥90 million or below per month(Of which, outside directors:¥3 million or below)

Monthly salaries(fixed compensation)

About

60%

Compensation for Directors and Audit & Supervisory Board
Members
Executive
category

Director(Of which, outside director)

Audit & supervisoryboard member(Of which, outside audit &supervisory board member)

Total

Total
compensation

Monthlysalaries

Bonuses(¥ million)(fixedcompensation)(Compensation
linked tobusiness
performance)

546
(52)

346
(36)

200
(16)

No. ofapplicable
executives

payments and execution of duties and assigned work.
—Ratio—• As a guide, we use the ratio of fixed compensation toa bonus of directors (excluding outside directors) of
60:40, with the portion linked to medium-term indicators
accounting for roughly 10% of the bonus. However, thisdoes not preclude us from using another ratio dependingon the amount of operating profit for the corresponding
fiscal year.
■ Compensation for Audit & Supervisory Board Members
Compensation for audit & supervisory board members
only consists of fixed compensation, which is determinedthrough discussion of audit & supervisory board members
based on certain criteria determined by Toyota Industries.

Effectiveness of the Board of Directors and Its
Evaluation
Through interviews with outside directors and audit &supervisory board members, Toyota Industries asks themto evaluate the effectiveness of the Board of Directors andcollects their feedback. The results of their evaluation aresummarized below.
■ Evaluation(1) Opportunities are provided to share information andhold discussions about management issues and othermatters.
(2) Appropriate decision-making and management
oversight are ensured by holding several discussions
on important matters prior to the resolution and byreporting and following up on the progress after the
resolution of these important matters. The Board
successfully draws opinions and advice from outside
directors and audit & supervisory board members
based on their experiences in their respective
companies and individual perspectives.
(3) The atmosphere is open, encouraging directors to freely
make comments and engage in lively discussion.
(4) Meeting materials are simple and clear, andexplanations are right to the point.
■ Suggestions for Further Improvement of theEffectiveness(1) Regarding major investments and other important
projects, more opportunities should be provided toreport the progress of each.
(2) To further invigorate the Board’s discussion, more
opportunities should be provided to directly listen to the
Meetings of the Board of Directors and Relevant Committees
Meeting body

No. of meetings
held per year

Average attendance rate

Board of Directors

1098%(Directors and audit &supervisory board members)

Executive Compensation
Committee

1100%(All committee members)

Executive Appointment
Committee

1100%(All committee members)

Audit & Supervisory Board

12

100%
(Audit & supervisory board
members)

10
(3)

106
(27)

106
(27)

—
(—)

5
(2)

653

453

200

15

Notes:
1. The figures include one director and one audit & supervisory board member who resigned
at the closing of the 142nd General Shareholders’ Meeting held on June 9, 2020.
2. Bonuses show the amounts approved by resolution of the 143rd General Shareholders’Meeting held on June 10, 2021.

41

voice of each site, including subsidiaries outside Japan.
As shown above, Toyota Industries’ Board of Directors
has been evaluated as effective. In response to certain
feedback calling for further improvement, we will undertake
improvement efforts on a continuous basis.

Audit & Supervisory Board System
Toyota Industries has four audit & supervisory board
members, two of whom are full-time members and two ofwhom are outside members.
The four members attend meetings of the Board of
Directors and provide their opinions as appropriate. The
full-time members also attend other important meetings toreceive reports on the execution of duties by directors andother responsible persons. They also carry out such activities
as on-site audits at the Head Office, major business sites andsubsidiaries as necessary and collaborate with independent
auditors and the Audit Department for overall audits.
Meetings of the Audit & Supervisory Board are held every
month to share information on audits conducted by thefull-time members with the outside members and to receive
reports from directors, responsible persons and independent
auditors. At these meetings, the members also discuss andmake decisions on important matters, such as audit policies
and plans, the audit method used by independent auditors
and the appropriateness of their audit results.
Initiatives for Enhancing Corporate Governance
1971
2006
2006
2010
2016
2017
2019

Introduced a divisional organization system
Reduced the number of directors (from 30 to 17)
Introduced a managing officer system
Appointed independent members of management
Reduced the number of directors (from 17 to 11)
Conducted an evaluation of the effectiveness of the Board of
Directors
Revised executive management structure and reduced thenumber and rank of executives

Exercise of Voting Rights
While respecting management policies of individual investee
companies, we determine how we exercise our voting rights
by checking each item on the agenda from the perspectivesof medium- to long-term enhancement of corporate value,policy concerning shareholder returns, corporate governanceand social responsibility.

Internal Control System
In accordance with the Companies Act, in May 2006 Toyota
Industries’ Board of Directors adopted the Basic Policies
for the Establishment of an Internal Control System (Basic
Policies) to ensure compliance, risk management as well as
the effectiveness and efficiency of business operations by
incorporating these policies into each business segment’s
annual policies and day-to-day routine management. The
CSR Committee, at its meeting held in March, assesses the
progress made in implementing the Basic Policies in theyear under review and determines actions for the coming
year, including reviewing the implementation structure andenhancing day-to-day operational management.
Furthermore, based on the Financial Instruments andExchange Law (so-called Japanese Sarbanes-Oxley Act(J-SOX)), we have established and appropriately operated aninternal control system to maintain the reliability of financial
reporting. The system’s status and progress are reviewed by
the Audit Department and audited by independent auditors.
We determine which Toyota Industries Group companies fallwithin the scope of J-SOX based on the degree of impact on
the reliability of financial reporting. We determined that ourinternal controls over financial reporting as of the end of fiscal
2021 were effective, and accordingly, submitted an Internal
Control Report in June 2021. The report was reviewed byindependent auditors and judged fair in their Internal Control
Audit Report.
Internal Control Assessment System (Based on J-SOX)

Cross-Shareholdings
Basic Policy
Cooperative relationships with various companies are
essential in expanding business and achieving sustainablegrowth. From the medium- to long-term perspective ofenhancing corporate value, our policy is to determine if
cross-shareholdings are needed by comprehensively giving
consideration to their importance in terms of our businessstrategies and relationships with business partners.

Internal control activities undertaken by eachdepartment and consolidated subsidiary(Establishment and operation of internal controls)

Annual financial report

Internal Control Report

Review of internal
controls bydeficiencies Audit Department

Improvement ofinternal controls Detection ofInternal Control Audit Report

Verifying Appropriateness of Cross-Shareholdings
Each year, the Board of Directors verifies if the purposeof cross-shareholdings is appropriate and if associatedbenefits and risks are commensurate with capital cost.
More specifically, we conduct verification by using bothquantitative information, which is based on comparison of
total shareholder return and weighted average capital cost as
well as return on equity (ROE) of each investee company, andqualitative information, such as the transaction status and theoutlook of future business relationships.

42

Toyota Industries Report 2021

Audit on internal controls by independent auditors

Compliance
Basic Perspective
We believe that compliance means both adhering to laws andregulations as well as ethics and social norms. As such, it isCompany Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Corporate Governancevital to promote compliance throughout the Toyota Industries
Group under the leadership of top management.
To promote compliance, we have established theCompliance Subcommittee (led by the head of the
Corporate Headquarters) as a subordinate organization to
the CSR Committee (led by the president). Every year, thesubcommittee formulates an action policy that covers theentire Toyota Industries Group and conducts a follow-up
check on the progress of corresponding activities twice
during that year. We have also established a system to report
serious violation cases that occur within the Toyota Industries
Group, including bribery, corruption and violations of antitrust
laws, to the Compliance Subcommittee.
CSR Material Issue■ Number of serious compliance violations in the Toyota
Industries Group: 0

Formulating the Employee Code of Conduct andThoroughly Implementing Awareness-Raising
Activities
Toyota Industries has formulated and distributed to
executives and all employees the Toyota Industries
Corporation Employee Code of Conduct, which serves asconduct guidelines that should be observed by employees.
It covers such topics as prevention of bribery, corruption
and profit sharing, conformance to antitrust laws, respectfor human rights, safety and health as well as environmental
conservation. Accordingly, we have been working to instill the
Code through group training and other means. Consolidated
subsidiaries in and outside Japan have formulated their own
Code of Conduct appropriate to their respective businesslines and corporate cultures and have been implementing
Company-wide awareness-raising activities once a year.
In addition, we have created and disseminated e-learningmaterials on 49 topics in order to cultivate a deeper
understanding of compliance among employees of Toyota
Industries Corporation and our consolidated subsidiaries inJapan and to create an environment in which employees
learn about compliance on their own.
Example Topics of e-Learning Materials
Compliance; Antitrust laws; Prevention of bribery; Human rights;
Various types of harassment; Safety behavior; Occupational
accidents; Mental health; Environmental protection; Management ofconfidential information; Traffic safety; Product liability; Accounting
process

Perceptions Index in accordance with their respective,
applicable laws) and been conducting activities to familiarize
employees with them in each country and region.

Efforts for Ensuring Compliance with AntitrustLaws and Competition Laws
As for antitrust laws, we operate a system to conduct a
check and review before and after employees of Toyota
Industries contact competitors and have been cultivatingawareness among employees for not acting in a mannerthat may possibly constitute a violation of antitrust laws.
Moreover, we have designated a particular month as“Antitrust Law Compliance Month” since fiscal 2016 tocarry out enlightenment activities at relevant departments.
Consolidated subsidiaries in and outside Japan have also
been working to educate and raise awareness of employees
for preventing violations of antitrust laws and competition
laws, such as forming cartels, in accordance with local laws
and regulations.

Early Detection and Prevention of Issues via
Whistle-Blower System
The Toyota Industries Group has in place a whistle-blower
system to report and seek consultation on compliancerelated issues. In Japan as well as key countries in North
America, Europe, Asia, Oceania and South America, weoperate a compliance hotline (external helpline) that allows
employees and other relevant parties to seek advice fromexternal experts on compliance-related matters without
being exposed to negative consequences. In fiscal 2021,
we received 62 reports and inquiries from within Toyota
Industries and from its consolidated subsidiaries in Japan onsuch matters as labor management, working environment
and ethics. After verifying each report and inquiry, we havetaken appropriate action regarding each case. Our responses
have been reviewed and judged appropriate by externallawyers.
In fiscal 2017, we also set up a hotline for our major
business partners to report and inquire about possible
compliance violations by Toyota Industries employees.
Through these initiatives, we ensure the early discovery andprevention of issues and intend to become a “company onwhich society places greater trust.”

Activities in the Toyota Industries Group
Each consolidated subsidiary of the Toyota Industries Group
has set up a compliance committee (in Japan) and appointed
a compliance officer (outside Japan) to lead and promote■ Execution rate of Employee Code of Conduct
enlightenment activities by Toyota Industries andconsolidated subsidiaries outside Japan: 100%;
Execution rate of Employee Code of Conduct
enlightenment activities by consolidated subsidiaries
in Japan: 75% (Unable to achieve 100% due to theimpact of COVID-19)

Efforts for Prevention of Bribery and Corruption
To prohibit and prevent bribery, Toyota Industries has
formulated the Global Guidelines for Bribery Prevention(or individual rules in countries high on the Corruption

Compliance Officer Conference in China

43

autonomous activities in respective communities. In North
America, Europe, China and Asia/Oceania, complianceofficers regularly hold conferences and facilitate collaborative
activities within each region.
In fiscal 2021, compliance officers from eight bases in
China attended the Compliance Officer Conference held
online. They shared information about compliance activitiesof each company and updates to relevant laws to learn
how to thoroughly implement basic points of complianceand improve response capabilities. After the conference,these bases have been conducting activities in a mutually
coordinated manner.
Main Compliance Officers
EuropeToyota Material Handling Europe AB
Andreas Lundh
United States
Toyota Industries North America, Inc.
Sheena Seger
China
Toyota Industries Management (China) Co., Ltd.
Zhu Lingling

Information Security
Basic Perspective
We recognize that the personal information of customers,
employees and business partners as well as information
concerning our technologies and sales activities are assetsthat need to be protected. Accordingly, with the aim ofsafeguarding our information assets and strengthening their
management, we have formulated the Basic Policies for
Information Security.
Basic Policies for Information Security(1) Legal compliance
We comply with laws and regulations related to information
security while fostering awareness of them among
employees.
(2) Maintaining a stable business foundation
We safeguard and manage information assets appropriately,
carry out information security-related education andenlightenment activities on an ongoing basis and seek tomaintain a stable business foundation.
(3) Providing safe products and services
We provide safe products and services to customers andsociety by implementing information security measures in ourbusiness activities, including development, design andmanufacture of products and services.
(4) Information security management
We build a governance structure to enforce and manage
information security and continue to promote and refine
the structure.

India
Toyota Material Handling India Pvt. Ltd.

Implementation Structure

Pragya Sharma

Toyota Industries has set up the Information Security
Subcommittee (led by an executive in charge of the General
Administration Department) as a subordinate organization to
the CSR Committee to reduce information security risks.
To thoroughly implement the initiatives adopted by thesubcommittee, we appoint information security managers*1
and information security administrators*2 at each department

Vanderlande Group
Vanderlande Industries Holding B.V.
Carl Messemaeckers

Organization for Promoting Compliance and Information Security under the CSR Committee

CSR Committee
Activity reports

Compliance Subcommittee (in charge of compliance)

Approval and instruction

Information Security Subcommittee (in charge of information security)

Europe, North America and China
Regional headquarters
Toyota Industries
Corporation

Consolidated subsidiaries
in Japan

Consolidated subsidiaries
outside Japan
Consolidated subsidiaries outside Japan

44

Toyota Industries Report 2021

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Corporate Governanceof Toyota Industries.
For consolidated subsidiaries around the world, we
regularly hold meetings of information technology (IT)managers in each region to share information on security
incidents and countermeasures both in and outside the
Toyota Industries Group and to disseminate relevant policies.
Through these and other measures, we are increasing thelevels of security and security awareness throughout theGroup.

preventing malware penetration and data leakage causedby cyberattacks.
■ Conducting Information Security Audits
In accordance with the All Toyota Security Guidelines(ATSG)*3, we biannually inspect the implementation
status of information security at Toyota Industries and ourconsolidated subsidiaries around the world in order tomaintain and improve the level of information security on acontinuous basis.

*1: Head of each department*2: A person within the department, appointed by the head

*3: Security guidelines of the Toyota Group, which conform to the Cyber Security Frameworkof the National Institute of Standards and Technology (NIST CSF) and ISO 27000 seriesof standards for information security management systems

Information Security Management■ Information Security Monitoring and Incident Response
To ensure the early detection of and prompt action against
cyberattacks, we have in place systems to monitor the
security of PCs and all other terminals used within the Toyota
Industries Group and to respond to incidents 24 hours aday, 7 days a week. Upon the occurrence of an incident, we
immediately report it to the president and senior management
and share relevant information within Toyota Industries.
We also share threat information with our consolidated
subsidiaries in and outside Japan to swiftly alert eachcompany.
CSR Material Issue■ Number of serious incidents occurred: 0■ Providing Education on Information Security
We believe that awareness among all executives,
employees and contract employees is crucial in preventing
information security incidents. Based on this belief, we
provide training on targeted attacks via e-mail and afteraction education more than four times a year per person.
We also send periodic reminders internally using incidents
that have occurred elsewhere as examples.
■ Preventing Leakage of Confidential Information
We strive to raise the level of information security byholding workplace meetings and conducting self-checks
regarding our information security practices. In termsof technological measures, we implement a multi-layer
defense that includes encrypting PCs, restricting andmonitoring the copying of files on recording media andPrimary Activity Examples
Activities in fiscal 2021
• Enhancing security services for consolidated subsidiaries in andoutside Japan• Facilitating tools (measures) to support actions against leakage ofconfidential information• Publishing information security newsletters• More advanced e-mail security training (targeted attacks via e-mailon specific departments and after-action education; four times ayear/person)• Performing a more stringent check on information devices brought
into the plant premises from outside• Providing information security education to on-site plant workers• Providing incident response training• Reinforcing a system of collaboration with consolidated subsidiaries
and with dealers in and outside Japan• Operating a system on a trial basis that automatically detects
unauthorized removal of information off the premises

Risk Management
Basic Perspective
Based on the Basic Policies for the Establishment of anInternal Control System in compliance with the Companies
Act, Toyota Industries is working to strengthen regulations
and a structure to promote risk management. We regard
the following aspects as the basics of risk management andimplement initiatives accordingly.
(1) Incorporating measures to prevent and reduce potential
risks into daily routines and following up on the
progress of implementation(2) Ensuring quick and precise actions to minimize theimpact on business and society when a risk becomesapparent

Implementation Structure
Business divisions and other departments at the Head
Office develop and promote annual action policies that
integrate measures to prevent and control risks related
to quality, safety, the environment, personnel, exporttransactions, disasters and information security. Progress is
assessed and followed up by each functional management
entity such as the CSR Committee and the Environmental
Committee. At the same time, functional departments atthe Head Office such as those responsible for quality, safety
and the environment formulate rules and regulations andcreate manuals from a Group-wide perspective, including
consolidated subsidiaries. By confirming and following up
on the progress through operational audits and workplaceinspections, they provide support for raising the level of risk
management at each business division and consolidated
subsidiary.
We have also formulated the Risk Response Manual,
which defines our initial response to an emergency. Thismanual lays out basic rules to be followed when a risk
becomes evident. The aim is to ensure quick reporting to top
management, perform an accurate assessment of the impact
on society and business activities and minimize damage
through appropriate actions. As a countermeasure to theongoing COVID-19 pandemic, we are making an appropriate
response based on this manual. The content of the manualis reviewed and revised as deemed necessary in response tochanges in businesses and the surrounding environment.

Response to Possible Major Earthquake
We consider the impact of a major earthquake as one of
the most significant risks and have accordingly formulated45

a business continuity plan. Based on the three basic
policies of placing maximum priority on human life, placing
top priority on the recovery of local communities andensuring the quickest possible recovery, we are making
Company-wide efforts in three relevant areas, specifically,“precautionary, pre-disaster mitigation,” “initial response to befollowed immediately after the disaster” and “restoration of
production.”

Disaster Prevention Structure
We strive to reinforce our disaster prevention structure toenable a smooth transition from the initial response stage tothe production restoration stage.
The Disaster Prevention Response Headquarters, led by
an executive vice president and consisting of representatives
from the functional departments at the Head Office, is
responsible for collecting information from plants and otherrelevant parties and making Company-wide decisions basedon the information collected.
Disaster Prevention Structure
Disaster Prevention Response Headquarters(Established in Kariya Plant)

Plant Response
Headquarters
Kariya Plant

Key Facility

e-Lab(information
systems
headquarters)

Obu Plant
Kyowa Plant
Nagakusa Plant &Morioka Works
Takahama Plant
Hekinan Plant
Higashichita Plant
Higashiura Plant
Anjo Plant

Remote Sites
Tokyo Office

Educational Sites

Company
dormitories
Company resort
facilities

Affiliated Companies

Suppliers

Toyota L&F
Customer CenterTokyo
Toyota L&F
CustomerCenter Osaka
TMHG Training
Center (Handa)

Promoting Disaster Prevention at Home andRelated Enlightenment Activities
Starting from fiscal 2017, we have been undertaking
enlightenment activities for employees and their families as ameasure to promote disaster prevention and avoid disasterinflicted damage at home. Specifically, we encourage themto take three actions: preventing the overturning of furnitureand securing an evacuation route; deciding how to contact
and where to meet with family members in a disaster; andstockpiling emergency goods, food and other necessities.

Efforts to Cultivate Personnel to Engage inDisaster Prevention Activities■ 1. Training at Disaster Prevention Response
Headquarters
As one important role assigned to the Disaster Prevention
Response Headquarters that oversees Company-wide
disaster response, we conduct training in which employees
collect information on damages to both inside and outside
the company premises, swiftly make decisions anddisseminate these decisions throughout Toyota Industries.
In fiscal 2021, we canceled comprehensive training to46

Toyota Industries Report 2021

Aggregating information within the Company

prevent COVID-19. Instead, we conducted training byfunction, such as aggregating information within Toyota
Industries. As an effort to reinforce our disaster prevention
structure, we also conducted a drill for plant security
staff to use IT tools to distribute information, assuming anighttime earthquake.
■ 2. Initial Response Training at Plant Response
Headquarters
In fiscal 2021, as with the Disaster Prevention Response
Headquarters, we avoided large-group training as
much as possible and conducted training for the Plant
Response Headquarters in small groups and by role
to confirm the action of each member. Specifically, themembers aggregated damage information and distributed
information using a simple wireless device. By conducting
training repeatedly, we intend to create a structure underwhich every member understands his or her role andresponds to the situation flexibly.
■ 3. Individual Training at Each Planta) Power Restoration Drill
Based on the procedures to restore power supplies,
including electricity and gas, which are essential inrestoring production activities, each plant conducts
genchi genbutsu (go and see for yourself) training on aperiodic basis. Through the training, we are identifying
problems and making improvements to step up ourefforts to ensure quick restoration activities.
b) System Restoration Drill
We conduct system restoration drills jointly with Toyota
Industries IT Solutions, Incorporated, a consolidated
subsidiary engaged in development and operation of
information infrastructures and systems, and work to
improve our readiness for quick restoration.
■ 4. Training for Identifying Disaster Damage
We repeatedly conduct drills jointly with our affiliatedcompanies and business partners in order to familiarize
them with the use of IT tools to quickly identify the damage
status during a disaster.

Future Activities
Preparing for floods and other natural disasters in addition
to earthquakes has been gaining significance. Accordingly,
we will draw on our response measures that have been
implemented mainly for earthquakes and extend our efforts
to other disasters in order to increase our overall disasterreadiness.

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Corporate Governance

Messages from Outside Directors(As of March 31, 2021)

Two business pillars of Toyota Industries are the automobile-related businesses and the lift truck/
logistics solutions businesses, and the Company has globally strengthened areas in these businesses
as required to adapt to changes in society or needs, such as the move toward electrification andautomation. In the logistics solutions field, in particular, the Company has extended the scope of its
business by utilizing M&As as well. While M&As represent one effective means of accelerating
corporate growth, achieving more fruitful results requires respecting each other’s corporate culture,understanding individual strengths and weaknesses and sharing a common goal. Toyota Industries
recognizes this point and has been successfully making steady progress in this regard. Goingforward, the task for the future will be to aim for the maximization of the outcomes.
Recently, environmental initiatives have gained significance on a global scale, as seen in efforts
toward carbon neutrality. Toyota Industries has already been working to develop environmentShuzo Sumi
conscious products and improve production processes. It is crucial that the Company moves forwardin this regard, bearing in mind to contribute to society from stakeholders’ perspectives.
In order to render corporate governance fully functional, a company has to do more than just setting up a governance posture at
a superficial level. What is important is to hold thorough discussions at meetings of the Board of Directors or other similar occasions
where a managerial decision is made. The Company’s Board has an open atmosphere that makes it easy to bring up a difficult
subject, and I hope this corporate culture will be passed on into the future. I myself intend to contribute to management throughvigorous discussion based on my own experience.

Toyota Industries and Mitsubishi Electric Corporation, for which I serve as Executive Corporate
Adviser, share a characteristic in that both run diverse businesses on a global scale. Having various
business divisions might cause employees in each division to solely focus on their own business andnot be concerned about growth in other fields.
In Toyota Industries, however, there is an atmosphere that encourages friendly competition anddeeper collaboration, as seen in its annual Aozora Ichiba event, which is a venue for businessdivisions, affiliated companies and business partners to present and share best practices mainly in thedevelopment and production fields. The same atmosphere is felt in the lively exchange of opinions at
the Board meetings. Internal newsletters effectively convey the Company’s open culture as well. It
takes a long time to build such a culture, and I hope that its value will be shared and fostered evenmore throughout the entire Toyota Industries Group.
Kenichiro Yamanishi
Logistics solutions represent one of the important fields in order for Toyota Industries to grow overthe medium term. The Company has been strengthening this business amid growing logistics needs
driven by the expanding e-commerce in recent years. Going forward, I hope that Toyota Industries will further clarify its vision,
maximize synergies, make sure to capture market growth and translate these efforts into its growth.
Although in a different industry, I have long engaged in the manufacturing sector. Based on my successes and failures in the past,
I would like to carry out more in-depth discussions about the medium- to long-term direction Toyota Industries should take from thestandpoint of an outside director and contribute to its sustainable growth.

Toyota Industries’ Basic Philosophy is based on a concept to provide products that are needed bysociety. Textile machinery, which constituted its founding business, was developed for the very
purpose of helping society. Not being content with the success of textile machinery, the Company has
leveraged its technology and know-how and expanded its business domains into automobiles,
materials handling equipment and logistics solutions, thereby creating a well-balanced businessportfolio. Putting it differently, Toyota Industries, which started out as a manufacturer of a mechanicalproduct, has adapted to the changing times and moved forward with electrification and automation
while keeping and improving its strengths in manufacturing, such as safety and quality. This
comprehensive capability is another strength of the Company.
Even though the trends in society and needed technologies may change, the foundation of
manufacturing will continue to remain important. What underpins it, to state the obvious, is people. In
Mitsuhisa Kato
pursuing business growth in the future, I hope that Toyota Industries will also turn its eyes to outside
the Company and navigate through difficult challenges by accepting human resources from andreinforcing exchange with other companies both in and outside the Toyota Group.
Toyota Industries is a global operator of various businesses. As such, discussion will be more invigorating if the Company
provides opportunities for its subsidiaries outside Japan to directly report on local situations at the Board meetings. In the rapidlychanging world situations and needed technologies, I place my expectation on Toyota Industries to leverage diverse perspectives inmanagement, make swift and accurate response to changes and continue to grow further.

47

Relationship with
Our Stakeholders

Relationship with Our Customers

P. 48–49

Relationship with Our Business Partners

P. 50-51

Relationship with Our Shareholders and Investors

P. 51

Relationship with Our Associates

P. 52–57

Relationship with Our Local Communities

P. 58–59

Relationship with Our Customers
Regarding quality as one of its material issues, Toyota Industries practices monozukuri (manufacturing) that quickly
responds to the diverse, ever-changing needs of customers.

Basic Perspective on Quality
Quality Vision
Each and every member of the Toyota Industries Group makes
sure to build in quality with ownership (Jikotei Kanketsu) at theirown workplaces and positions to supply appealing products/
services that exceed the expectations of customers around theworld with safe and reliable quality.

Carrying on the spirit of founder Sakichi Toyoda that
“A product should never be sold unless it has been carefully
manufactured and fully tested in the commercial trial, withcompletely satisfactory results,” Toyota Industries strongly
believes that quality is the lifeblood of a company. Under
this belief, we have formulated our Quality Vision as ourphilosophy in ensuring quality that forms the basis of ouroperations.

the head of the Production Headquarters*1 for identifying
additional issues and devising countermeasures. Issues
raised are followed up at meetings of the Company-wide
Council of Heads of Quality Assurance Departments chairedby the head of the Quality Control Department*1.
*1: As of March 31, 2021

Quality Assurance Activities Based on the Quality Guidelines
Checking and identifying issues ofCompany-wide quality status and progressin implementing the guidelines
President
Quality Functional Meeting
Head of the Production
Heads of
Headquarters
business divisions

Company-wide Council of Heads of
Quality Assurance Departments

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

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

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

Manufacturing capabilities

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 ouroverall corporate image and brand strength in terms of all ofthese attributes.

Quality Guidelines and Quality Assurance
Structure
To achieve the goal of the Quality Vision, we issue the Quality
Guidelines, which identify priority quality-related issues to be
implemented in each fiscal year, to all production bases inand outside Japan and engage in quality assurance activities
accordingly. The implementation status of these guidelines
is reviewed by top management at the Quality Functional
Meeting chaired by a senior executive officer serving as48

Toyota Industries Report 2021

Quality Vision
Quality Roadmap

A
CP

PDCA*2cycle

Quality Guidelines

D

Quality assurance activities atall bases in and outside Japan

Types of Quality Sought by Toyota Industries

Quality levels that
customers truly
expectImplementing
Company-wide
guidelines

Quality Guideline 1
Quality Guideline 2
Quality assurance in Quality assurance inproduct development
mass production

Quality Guideline 3
Quality assurance atbusiness partners

Quality Guideline 4
Human resources/
workplace development*2: PDCA (Plan, Do, Check, Act)

Toyota Industries undertakes product development thatmeets customer expectations by capturing market needs
and understanding how our products are actually used bycustomers.
At Toyota Industries, development of a new productentails 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 design review (DR), which allows a product toproceed to the next stage only when a responsible businessdivision head examines and approves whether the producthas reached the target quality level.
Additionally, we are proactive in obtaining ISO 9001
certification, an international standard for quality management
systems, and IATF 16949, an international standard forautomotive quality management systems, throughout ourbusinesses.
■ ISO 9001 certification:
Acquired by 20 out of the 24 production subsidiaries(as of July 2020)

Risk Assessment for Product Safety
In order to provide products that are safe for customers touse, each business division conducts risk assessment during
a DR to identify, assess and respond to all risks.
We are also making Company-wide efforts to promote
the development of human resources who can assess twoCompany Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

factors integral to risk assessment, namely, the likelihood of an
occurrence of a hazard and severity of damage caused by it.
CSR Material Issue■ Rate of performing risk assessment on applicableproducts (non-consolidated): 100%

Major Initiatives
Preventing Occurrence and Recurrence of Defects
If a defect is found in a product after its launch, the Quality
Assurance Department of the responsible business division
takes the lead in making a swift response to eliminate theconcerns of customers and implementing measures toensure non-recurrence of the same defect. In particular, adefect causing considerable inconvenience to customers
is recorded as a critical quality issue and reported to thepresident. At the same time, we have in place a system
to follow through on customer response as well as
measures to prevent recurrence. Accordingly, we examine
and identify the cause by going back to its development
process. We implement countermeasures both from theprocess and technological aspects and revise our new
product development process as necessary. Through thesemeasures, we strive to thoroughly avoid the recurrence of thedefect in subsequent models. Additionally, we make efforts toprevent the occurrence of defects in all products we develop
and manufacture in the future by taking measures throughout
Toyota Industries.

Providing Support to Business Partners
Since improving the quality of our products requires
concerted efforts with our business partners in and outside
Japan, we are strengthening joint quality assurance activities
with major business partners.

1. Quality Audit

In each annual quality audit, we determine priority areas,
conduct genchi genbutsu (go and see for yourself)
inspections to confirm the improvement status of thepreviously identified deficiencies and provide quality
education on items that should be reinforced in order tocultivate a deeper understanding of kaizen (improvement).
In fiscal 2021, since on-site visits were not possible, we
performed audits remotely.

2. Nurturing Internal Auditors

To foster voluntary quality improvement efforts of business
partners, we are promoting efforts for business partners
satisfying our criteria to nurture their own internal auditors
and autonomously improve their quality assurance systems.
These activities enable our business partners to attain thelevel of quality assurance required and establish a culture tofoster quality assurance on their own.

human resources who think, learn and act on their own. We
have also been promoting quality control (QC) circle activities
and creative proposals to establish a vibrant workplace alongwith promoting the development of human resources who
can take a scientific approach to quality assurance by using
statistical quality control (SQC) techniques and big data
analysis.

1. QC Circle Activities

We encourage all employees to participate in QC circle
activities. We have garnered many awards, as we presented
the results of our activities at QC circle conventions acrossJapan. For example, we received an encouragement award
under the QC Circle Kaoru Ishikawa Award program for four
consecutive years. The award is given to QC circles for theircontribution to widespread, more active and better QC
circle activities.
Our production bases outside Japan are also proactive inpromoting QC circle activities. We assist them in undertaking
independent activities by nurturing and certifying QC circle
trainers at each base. Even though the COVID-19 pandemic
that started in 2020 affected QC circle activities of all bases
outside Japan, these trainers have devised creative solutions
to maintain their initiatives.
As for the Global QC Circle
Convention held every
year in Japan as a venue
for presenting activity
results, we switched toa video session in fiscal
2021 and shared the
QC circle meeting held outside due toaccomplishments of
COVID-19 pandemic (Indonesia)
all bases.
With regard to employees’ creative ideas, we received
nine awards in fiscal 2021 in the Creativity category in theCommendation for Science and Technology by Japan’s
Minister of Education, Culture, Sports, Science andTechnology.

2. Nurturing Human Resources Who Can Take a
Scientific Approach

As part of our basic education on quality management, weteach the basics of SQC and big data analysis.
Under this initiative, we have been working to increase
the practical application of big data analysis. Specifically,in addition to nurturing core human resources throughproblem solving in the workplace, we have held the TICOSQC Convention for 37 years to share best practices of eachbusiness division and hone collective skills. In fiscal 2021, thissession was held online in response to COVID-19.

TICO SQC Convention (held online)

Promoting Human Resources and Workplace
Development
Toyota Industries provides systematic quality education to
all employees to help them acquire quality assurance skills
needed in actual operations. We have been developing

CSR Material Issue■ Rate of receiving quality education and training (nonconsolidated): 100%
(Number of employees receiving basic education on quality
management: 178)

49

Relationship with Our Business Partners
Toyota Industries encourages open procurement and seeks co-existence and co-prosperity with our business
partners (suppliers) based on mutual trust. We also facilitate fair trade, environmentally preferable purchasing,human resources development, disaster prevention activities for a possible major earthquake and other disasters
and more efficient purchasing.

Major Initiatives

Procurement Policies• Fair and equitable business transactions based on an open
door policy• Co-existence and co-prosperity based on mutual trust• Reducing environmental impact through environmentally
preferable purchasing• Localization of business for good corporate citizenship• Legal complianceFair and Equitable Business Transactions Basedon an Open Door Policy
We provide fair and equal opportunities to all potential
business partners. We comprehensively evaluate ourbusiness partners based on such factors as quality, price,adherence to delivery times, technological capabilities andmanagement information. We also assess their initiatives forsafety, the environment and compliance as we strive for thetimely and stable procurement of excellent products at lower
costs based on fair business transactions.

Co-Existence and Co-Prosperity Based on
Mutual Trust Cultivated through Regular Dialogue
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 control and technical skills training, guidance directed
toward kaizen at their production sites and safety and healtheducation throughout the year.

Reducing Environmental Impact throughEnvironmentally Preferable Purchasing
We aim to procure parts, raw materials and equipment frombusiness partners that give sufficient consideration to theenvironment.
In the sixth edition of ourEnvironmentally Preferable
Purchasing Guidelines, we added
the aspirations in 2050 of ourEnvironmental Vision. Accordingly,
we have been strengthening
environmental management in our
entire supply chain and undertaking
relevant initiatives throughout the
product lifecycle.
Link tothe guidelines

50

Toyota Industries Report 2021

Environmentally Preferable
Purchasing Guidelines

Human Resources Development
We proactively provide education to enhance procurement
knowledge. In fiscal 2021, we provided education mainly
on Japan’s Subcontracting Law to personnel in charge ofprocurement at Toyota Industries and affiliated companies byusing a web conference system for greater efficiency and forpreventing the spread of COVID-19.
We also thoroughly inform personnel in chargeof procurement about our response to the Japanese
government’s initiatives and guidelines aimed at ensuring fair
subcontracts.
Participants of Subcontracting Law-Related Seminars
Toyota Industries(Persons)

Affiliated companies

1,200
1,000
800
600
400
200
0

(FY)

17

18

19

20

21

Procurement Risk Management
1. CSR-Related Efforts in the Supply Chain
Once a year, we distribute to our business partners the
CSR Guidelines for Business Partners, which describe ourrequirements related to CSR activities, and ask them toperform a self-inspection using a checklist. By doing so,
we are striving to maintain soundtransactions and augment a related
structure throughout the supply
chain.
CSR Material Issue■ Rate of performing a CSR
check on applicable suppliers(non-consolidated): 100%
Link tothe guidelines
Toyota Industries’ CSR Guidelines for
Business Partners are available on its
Website (in Japanese).

CSR Guidelines for
Business Partners

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders■ Response to Conflict Minerals
As one initiative for respecting human rights, we stipulate
our Procurement Policies for Mineral Resource and Raw
Materials in the CSR Guideline for Business Partners.
Based on these policies, we conduct a periodic check to
confirm that Toyota Industries and its business partners
do not use conflict minerals that have concerns for thefunding of armed groups or for the abuse of humanrights, such as child labor, forced labor and mining underpoor working conditions.
■ Establishing a Hotline for Business Partners
In fiscal 2017, we set up a hotline for our business
partners to report and inquire about possible complianceviolations in Toyota Industries’ procurement activities toensure early detection and the prevention of problems.

2. Business Continuity Management (BCM)
In further promoting BCM, we are making concerted
efforts with business partners to reduce associated risks
by implementing specific measures. In fiscal 2021, to deal
with frequent natural disasters in recent years, we extended
the scope of our IT system-based damage assessment
from earthquakes to other natural disasters. As part ofour supply chain risk assessment related to floods, wehave identified business partners with flood risk by using
hazard maps. Moreover, in order to recover quickly andmaintain production, we have reinforced our flood control
measures at each base while at the same time accumulating
inventories and examining ways to decentralize suppliers
and production bases.

Relationship with Our Shareholders and Investors
We aim to obtain an appropriate company valuation in stock markets through timely, appropriate and fair
information disclosure as well as proactive dialogue with shareholders and investors.

Basic Perspective and Implementation
Structure
Toyota Industries continually carries out timely, appropriate
and fair information disclosure for shareholders and investors.
In this way, we raise management transparency and increase
an understanding of the Toyota Industries Group so that we
obtain an appropriate company valuation in stock markets.
Our investor relations (IR) activities are supervised by an
executive in charge of the Corporate Planning Department.
We also strive to engage in proactive dialogue withshareholders and investors by establishing a dedicateddepartment.

Major Initiatives
We implemented various safety protocols for our 142ndGeneral Shareholders’ Meeting held on June 9, 2020,
including reducing the number of available seats, to preventthe spread of COVID-19 and ensure the safety of ourshareholders.
With regard to the exercise of voting rights, we
encouraged shareholders to use the Internet and other online

means. All resolutions were passed at the meeting.
For institutional investors and analysts, we held financial
results briefings by management, while the Investor Relations
Office conducted individual interviews via telephone and theInternet. At these opportunities, we engaged in dialogue
on our future direction and other topics, which pertained
mainly to initiatives carried out by each business under
the pandemic as well as logistics solutions, for which wehave been striving for business reinforcement, and efforts
concerning electrification in the fields of automobiles andmaterials handling equipment.
Opinions and requests we collect throughcommunications with shareholders and investors are fed
back to executives and relevant business divisions via theBoard of Directors and various committees to reflect them inour future business activities.

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 at theconsolidated dividend payout ratio of roughly 30% and meetthe expectations of shareholders upon comprehensively
taking into consideration such factors as business results anddemand for funds.
For fiscal 2021, Toyota Industries decreased annual cash
dividends by ¥10.0 from 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).

142nd General Shareholders’ Meeting51

Relationship with Our Associates
We undertake initiatives to enable associates to work safely and with peace of mind as well as to exercise theirdiverse potentials and play active roles.

Basic Concept of Human Resources
Management and Labor Management
Under the spirit of “Respect for People,” Toyota Industries
undertakes a range of initiatives based on a relationshipof mutual trust and mutual responsibility between the
Company and associates. Our basic concept in this area isto develop and leverage the capabilities of associates andthe organization to the fullest by promoting the creation of ahighly motivated team.

Major Initiatives
Building Interpersonal Relationships
Toyota Industries believes it important to build good
relationships between supervisors and subordinates as wellas among associates through sufficient communication.
Accordingly, we are facilitating communication in theworkplace through various measures. Examples include thepromotion of active communication between supervisors andsubordinates as well as a mentorship system in which moreexperienced associates take care of younger associates,
giving advice about their worries, including those in their
daily lives. We are also promoting informal, non-business
communication to cultivate a sense of unity in the workplace
and throughout Toyota Industries via various events. They
include social gatherings organized by each workplace aswell as sports days, summer festivals and Ekiden longdistance relay races held jointly by some Toyota Industries
Group companies as annual activities. Through these efforts,
we are creating a workplace where each associate can thrive.

Increasing Associate Satisfaction
Toyota Industries focuses on creating a workplace thatenables individual associates to demonstrate their abilities
to the fullest and find their work rewarding and meaningful.
While our basic stance is to solve difficulties faced byassociates and their grievances about the workplace throughcommunication between supervisors and subordinates, we
also listen to voices of associates through Company-wide
morale surveys. In addition, we strive to improve working
environments by holding comprehensive labor-management
discussions on associates’
suggestions gathered by ourworkers’ union. As we believe
ensuring stable livelihoods for
associates is another importantmatter, we are enhancing ourwelfare program to realize moreenriching and fulfilling lives.

Interview between a supervisor andsubordinate

52

Toyota Industries Report 2021

Human Resources Development
Toyota Industries recognizes that to achieve sustainablecorporate growth associates’ personal growth and improved
skills are essential and constitute the most important factor
in work motivation. Recognizing that on-the-job training(OJT) through daily work forms the basis of our humanresources development, we hold a biannual supervisorsubordinate interview to discuss various matters, including
a challenge of achieving the subordinate’s further growth. To
complement OJT, we also provide introductory training for
new employees, rank-based training for associates being
promoted to a higher position and specialized education tocultivate expertise, abilities and skills necessary for carrying
out work tasks. We are working to reinforce human resources
development by
providing a variety of
training programs thatlead to practical use in
the workplace.

Training for newly appointed Senior staff (SS)Rank-Based Training/Grades
Office associates
Managers

Senior staff(SS)

Middle staff(MS)

Production associates

Training for newly promoted
managers grade 3
TICO Business Practices
training III
Training for newly promoted SS

Training for newly promoted CXTICO Business Practices
training II
Training for newly promoted MS

Training for newly promoted SXManagers

Chief experts(CX)

Senior experts(SX)

Experts (EX)Training for newly promoted EX

Junior staff(JS)
TICO Business Practices
training I

Production associate training III
Production associate training II

Clerical staff(CS)

Induction training

Generalassociates

Induction training

Supporting Active Roles and Work Styles ofDiverse Human Resources
1. Supporting Work-Life Balance
We have been carrying out activities so that associates
who are balancing work and family can work with higher
motivation and pursue career development. Such activities

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

mainly focus on enhancing systems to support a work-lifebalance and facilitating an understanding for maintaining awork-life balance.
The enhancement of systems to support a work-lifebalance includes an on-site day care center; a return-towork (“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 getreinstated under certain preconditions; a shorter work-hoursystem for childcare; and a leave system and loan system
for fertility treatment. Through these systems, we provide
an environment for associates to work at Toyota Industries
for longer years with peace of mind. As a means to facilitate
an understanding for maintaining a work-life balance, we
distribute the Handbook for Balancing Work with Nursing
Care to associates above a certain age to help them gain
knowledge on nursing care and to create a workplaceculture that allows associates to seek advice easily. We also
regularly hold seminars on balancing work with nursing care
for associates and their families and provide newsletters on
nursing care to those who are interested.
As a result of these efforts, Toyota Industries received“Platinum Kurumin” certification from the Ministry of Health,Labour and Welfare in August 2019 in recognition of our
excellent efforts concerning work-life balance as well as a
“Family-Friendly Company” award from the Aichi prefectural
government in February 2020.

positions, comprising males and females from different
departments. This project was key for the identification ofissues and formulation of policy proposals in promoting activeroles of female associates, which formed the basis for the

2. Promoting Active Roles of Female Associates

Promotingflexible working (2) Establishing satellite offices
practices

CSR Material Issue

We aspire to let individual associates to thrive in theirassigned work and role regardless of gender. Accordingly,
we have augmented our efforts to promote greater roles offemale associates.
In 2015, we set up a project to promote more activeroles for female associates in office work and engineering

Action Plan for More Active Roles for Female Associates
Implementation
FY2016 – FY2022(1) Launch, message from president(2) Awareness seminar for managerial staff
Changing
mindsets(3) Follow-up on individual development plansamongmanagerial(4) Getting spouses involved in pre-maternity
staff and acrossleave seminars
all associates(5) Lectures by male role models(Ongoing)(6) Promoting further engagement of maleassociates in childcare(1) Sending associates overseas for training at
an early stage in their careers(Ongoing)(2) Career training and interviews for female
assistant managers
Career support(3) Role model exchange meetings
for female
associates(4) Early return-to-work support (pre-maternity
leave seminars)(5) Early return-to-work support (financial aid
system for day care costs)(1) Expanding work-at-home options(3) Installing refrigerated delivery lockers
Promoting more (1) Launch
active roles of(2) Seminar for supervisors on nurturing
femalefemale subordinates
production
associates(3) Work style seminar for female associates

Initiatives for Promoting Active Roles of Female Associates

Phase 1

Phase 3
Undertaking initiatives to promote even greater roles

2002 —

2015 —

Promoting active roles
Supporting
work-life balance

Phase 2

Establishing and enhancing work- Cultivating a culture to encourage
more active roles
life balance support systems
to instill related practices
2008 —

Cultivating a culture• Opening a diversity-related pageon the intranet• Female associate exchange
meetings• Holding lectures

2019 —

Project to promote more active roles for female
office associates
Working group for promoting activeroles of female production associates

Enhancing support systems• Extending the period of• Introducing a shorter work-hour system for childcare
childcare leave• Introducing a leave system to allow• Introducing a work-at-home systemparental care of children with illnesses• Establishing on-site day care center• Installing delivery lockers• Introducing a “welcome-back” system• Introducing a financial aid systemfor day care costs• Introducing a system of leave
for fertility treatment

53

development of a Company-wide action plan in clarifying
the initiatives for this project. Under the plan, we are moving
ahead with efforts to promote even greater roles of female
associates. Since fiscal 2017, we have held a seminar for a
cumulative total of more than 1,400 managers who directly
engage in the mentoring and development of associates.
Starting from fiscal 2020, we have been conducting
enlightenment activities to foster an understanding of theenvironment in which associates, both male and female,having limited working hours due to nursing care or childcare
are working. We have also worked to raise awareness ofhuman resources development that takes into account theirlife events.
In order to create an environment to allow associates
who are balancing work and childcare to work with higher
motivation and pursue career development, we haveenhanced our programs to support the early return to workfrom a break in their career. Efforts include a full-day work-athome system launched in October 2016; pre-maternity leaveseminars started in December 2017 for associates and theirspouses to think about a way of working after returning towork; and a financial aid system for day care costs adopted

3. Employment of Persons with Disabilities

TOPIC

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.

Promoting More Active Roles of Female
Production Associates■ Ratio of associates with disabilities: 2.40%(non-consolidated)

We aspire that all associates engaging in production
operations fully work and take active roles until an older
age. In order for female associates to do so, we need
to overcome issues of gender-related differences inphysical strength and frame as well as the challenges ofworking during pregnancy, after giving birth and whileraising children. As a means of doing so, we formed a
Female Working Group and Job Level Working Groupin fiscal 2020. These groups have been working toreview current issues, identify countermeasures andformulate an action plan for the next and following fiscal
years. In fiscal 2021, we held a work style seminar for
female associates, during which female production
associates explored experiences and work styles
necessary to continue thriving in their own way andcreated a plan themselves. We also held a seminar for
supervisors on nurturing female subordinates, giving
them an opportunity to think about how best to support
their subordinates.

Ratio of associates with disabilities (non-consolidated) andlegally mandated ratio

CSR Material Issue

Work style seminar for female production associates

54

in April 2018 for associates working while taking care of
infants younger than one year old.
As a result of these initiatives, the number of female
managers has steadily increased. In October 2016, wereceived “Eruboshi (“L Star”: L stands for Lady, Labourand Laudable)” certification, which is given to companies
making excellent efforts in promoting female engagement in
the workplace, from Japan’s Ministry of Health, Labour andWelfare. In November 2019, we also received an “Excellent
Company” award from the Aichi prefectural government
under its “Female-Friendly Company” certification program.
Looking ahead, we will continue to make efforts toimprove workplaces to offer females a wider range of jobs
and higher quality of work and maintain initiatives started infiscal 2020 to promote active roles of female associates in
production operations. We will also support the creation of abetter working environment to enable all associates working
under time constraints to fulfill their individual potential.

Toyota Industries Report 2021

(%)
2.5

Ratio of associates with disabilities

2.4
2.3
2.2
2.1

Legally mandated ratio

2.00(FY) 17

18

19

20
21
(As of June 1 of each fiscal year)

4. Creating a Work Environment for Older
Associates
In order to enable older
associates to work and takeactive roles in production
operations, we have been
focusing on creating a better,less physically stressful work
environment for them.
Recent efforts include
setting up standard
procedures for the handlingof heavy objects and a work
environment that makes it
easier for older associates
to work, and improvement inProcess improvement using
the work posture analysis system

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

processes in production lines with the development of a work
analysis system that evaluates work posture using videos. In
addition, we hold “Seminars for an Active Life” for associates
reaching the age of 50 and 55 to give them an opportunity toenvision life and work for the next 10 years.

Efforts Related to Respect for Human Rights
Toyota Industries believes it essential to ensure that we do
not infringe human rights of all of our stakeholders involvedin business activities, including associates. It is equallyimportant to take appropriate measures to rectify the
infringement and fulfill our responsibility if human rights arenegatively impacted in our business activities.
In respecting human rights, it is crucial that every
associate has a correct understanding of these rights. As
such, we undertake human rights enlightenment activities
through new employee education and rank-based training.
We also recognize that non-Japanese associates working inJapan are more susceptible to human rights-related troubles
due to language barriers as well as different living andworking environments in Japan and their home countries.
To protect such associates, we conduct human rights due
diligence concerning their employment on our consolidated
subsidiaries in Japan.

Structure for Promoting Safety and Health
Under our basic policy of placing a top priority on safety,
we have been striving to eliminate industrial accidents andoccupational disorders. As part of such efforts, we haveestablished the necessary committees, including the Central
Safety and Health Committee and Plant Safety and HealthCommittees.

Occupational Safety and Health Management
SystemIn accordance with the concept of an Occupational Safety
and Health Management System (OSHMS), we haveestablished a required management structure in each plant(or business division) headed by a general safety and healthmanager (senior executive officer or another executive)
and have been carrying out safety and health activities on
an ongoing basis from human, object and administrative
standpoints based on risk assessment.
Management Council / CSR Committee

Central Safety and Health Committee(Chaired by the responsible
senior executive officer, etc.)(Held twice a year)

Basic Perspective on Safety
Based on the idea of building “a homelike atmosphere atwork that is warm and friendly” as stated in the Toyoda
Precepts, we formulated the Safety Vision in 2013 after
holding repeated discussions on the “basic stance on safety”
and “optimal safety we seek.” The vision has been instilled at
all bases in the Toyota Industries Group.

Subcommittee on
Improvement of Working
Environment(Held twice a year)
Plant Safety and Health Committees(Chaired by the responsible
senior executive officer, etc.)(Held once a month)

Improvement Flow of Safety and Health Activities

Continuous
improvement

Review by

A management
Inspection andC corrective measures

Occupational Safety
and Health Policies

P

Plans
Execution and

D operation

Safety Vision
Each and every associate in the Toyota Industries
Group, guided by the spirit of our corporate creed,aims to create a corporate culture that places a toppriority on maintaining safety in all areas and focuseson mutual courtesy and safety as well as realizing
workplaces where associates work each day with asense of happiness and pride.

Major Safety-Related Initiatives
Thorough Safety and Health Education
In order to cultivate knowledge, awareness and the skills
necessary to prevent industrial accidents and occupational

55

Ensuring to cultivate the necessary knowledge,
awareness and skills at the appropriate timing

disorders, Toyota Industries proactively provides safety andhealth education, including education designed to fostera safety culture, education required by law, rank-based
education and job-category-based education.
Education to foster a safety culture
Safety workshops, education to improve an ability to
predict hazards, education to actually experience hazards(safety dojo), etc.

Education based on positions/grades andassociated roles
Introduction training, production associate training II, training
for newly promoted SX and CX, training for newly promoted
forepersons, safety manager education, etc.

Education for acquisition of qualifications(cultivation of personal skills)
Licenses, skills seminars, special education, repeatededucation for capability improvement, etc.

checks by inspectors
possessing the required
skills, as an effort toimprove the safetyassurance of equipment.
We will continue
to work toward thedevelopment of safe
workplaces andEducating inspectors
safety-oriented humanresources based on an approach of the Toyota Production
System (TPS), which is to always shut down a machine
when something is wrong and take fundamental measures toremove the root cause.
Frequency Rate of Lost Workday Injuries (Non-Consolidated)
1.60

1.20

Manufacturing industry
Education based on job categories and businesscharacteristics
Education on emergency measures, education on equipment
lockout, basic education on equipment safety, hands-on
education using virtual reality (VR), risk assessment, etc.

0.80

Manufacturers of transportation machinery and equipment
0.40

Toyota Industries

Safety and Health Activities for Business Partners
As part of activities to prevent accidents (fires and explosions)and industrial accidents involving business partners on thepremises of Toyota Industries, we have established the Safety
and Health Council with subcontractors located on our
premises to jointly create a comfortable working environmentby sharing information on accidents and disease prevention
activities of Toyota Industries.
Using past accident cases as a reference, we periodicallyshare various information, including matters that should beobserved to prevent similar accidents, with subcontractorsof outsourced work. We also request their cooperation to
perform risk assessment in the construction work planningstage to identify associated risks. In addition, we encouragethem to always discuss in advance a safe work method withthe departments of Toyota Industries planning a construction
project.

Efforts against Serious Accidents
CSR Material Issue

In 2019, a serious accident occurred at a Toyota Industries
plant during the product quality assurance process due tothe defective structure of equipment. We subsequently madeefforts to identify deficiencies and undertaken measures
to prevent recurrence. In fiscal 2021, we continued toconcentrate on the implementation of physical measures.
As an example, in May 2020 we introduced a mechanism toalways cut off power when an operator accesses a machine
while disabling its safety device.
In addition, we have built a system to definitively prevent
serious accidents when installing or retrofitting equipment,
which includes visualization of stop control and safety feature

56

Toyota Industries Report 2021

Good

0.00

(FY) 17

18

19

20

21

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

Major Health-Related Initiatives
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 of health problems associated with aging andgreater stress. Through these efforts, we help associates towork and take active roles over the long term.

Prevention of Lifestyle Diseases
As a collaborative initiative of Toyota Industries, its workers’
union and health insurance association, we conduct periodic
age-based health education for all associates (every five
years, from the age of 30). To provide motivation for better
health, we feed back to associates the results of an annual
health checkup along with advice to improve lifestyle habits.

Walking event

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

In fiscal 2020, we started providing such information as
physical fitness propensity scores and countermeasures,
how physically fitted for work, assessment of physical fitness
age and recommended exercises to increase motivation for
promoting physical fitness.
For preventing and ameliorating symptoms of metabolic
syndrome, we provide health promotion guidance toassociates at the age of 39 or younger in addition to specifichealth guidance required by the Japanese government. By
doing so, we encourage associates to improve lifestyle habits
early on.
Major Health Promotion Activities in Fiscal 2021

have worked to instill a culture that will lead to increased
awareness and action. Under the stress check system
introduced in fiscal 2017, we again conducted a check on
all associates in fiscal 2021 and fed back the check results
to all participants and workplaces with suggestions for
improvement. We also set up an individual interview with adoctor for those wishing to do so and provided improvement
support as necessary to individual workplaces. As a means
to feed back the results to workplaces, we operate an ITbased Workplace Check Results Viewing System that allows
the users to perform a precise search of results and tips for
improvement.

Stop smoking
awareness event

No Smoking Days: Half-day no smoking (for 10 days)

TOPIC

Walking events

Held jointly with health insurance association twice ayear in spring and fall (761 participants)

Included in White 500 for Four Consecutive
Years

Early detection

Providing financial aid for various examinations(used by 914 associates)

Mental Health Support
As part of mental health support activities, we have in placea system to offer early consultation through a health-related
hotline. Other activities include upgrading our self-care/line-care education to prevent new cases of mental healthproblems and operation of a return-to-work support programfor persons on long-term leave for prevention of relapses.
We have successfully achieved positive results through these
activities.
In fiscal 2021, we put particular emphasis on line careand encouraged supervisors to use check sheets and checkcards to develop skills to recognize the sign of a problem
of subordinates who report directly. Through this effort, we
Improving Mental Health Support Systems(Introduced a Stress Check System in Fiscal 2017)

Mental health education

Early detection/early resolution
Preventing relapses

Major Activity Indicators
Activity indicator

FY2019FY2020

FY2021

Participants of age-based
health education*

2,470
persons

2,357
persons—

Rate of undergoing a stress
check

99%

99%

99%

* Temporarily suspended from March 2020 for preventing the spread of COVID-19

Workplaces

Individuals

Preventive measures

Objective

For its efforts related to the health of associates, forthe fourth consecutive year Toyota Industries wasrecognized in the large enterprise category of the 2021
Certified Health and Productivity
Management Organization
Recognition Program (White 500)
jointly promoted by Japan’s Ministryof Economy, Trade and Industry and
the Nippon Kenko Kaigi.

Providing information on mental healthResponse to COVID-19

Improving support via the introductionof a stress check system

In accordance with the Risk Response Manual, which
has been formulated to prepare for an emergency,
Toyota Industries has established a COVID-19 Response
Headquarters and has been collaborating with health centersand other public agencies to counter the pandemic. We havedeveloped and distributed a response manual specifying
procedures to follow when infection occurs in a workplace.
Our basic COVID-19 protocols also include checking bodytemperature every morning, frequent hand washing andavoiding the 3Cs (closed spaces, crowded places andclose-contact settings) as well as working from home. We
will continue to collect relevant information and implement
measures corresponding to the latest developments
regarding the infection status.

Encouraging associates
to be more aware of
their health andoffering advice on
health improvement
measuresInterviews aspart ofhealth checks

Providinginformation oninternal andexternal
health-related
hotlines

Understanding thecauses of stress inthe workplace andimproving working
environments

Workplace Check
Results Viewing<Line care>
SystemDisseminating(also providing theknowledge on
results of associate
skills torecognize problems awareness surveys)
Return-to-work support

57

Relationship with Our Local Communities
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 undertakesocial contribution activities in every region where we do business.

Basic Perspective

Communicating with Local Communities

Carrying on the founding spirit of “contributing to society
through monozukuri (manufacturing),” each and every
employee of Toyota Industries proactively engages in social
contribution activities as a dedicated member of society.
With an emphasis on the areas of social welfare, youth
development, environmental protection and community
contribution, we not only provide cooperation and support
through personnel, facilities, funds and know-how but also
strive to closely connect with participants.

Implementation Structure
We have established the Social Contribution Group within
the General Administration Department in the Corporate
Headquarters. Through this group, we plan and execute
various programs in aforementioned areas; undertake
enlightenment activities to raise employees’ awareness;
provide logistics support to volunteer activities of individual
employees as well as employees’ voluntary organizations
formed at each job level; and promote communication withlocal communities.
We established a volunteer support center called “HeartfulClub” in 2008, which has been used as a base for our social
contribution activities, such as collaborating with NPOs andholding meetings with local residents.

Major Initiatives
Enlightenment Activities
We promote a range of programs for employees of Toyota
Industries and its Group companies so as to increase theirinterest in social issues and cultivate a mindset to always
think about what they can do to address these issues. Suchprograms include donating one item per one person to help
welfare facilities to hold a charity bazaar; local cleanup activity
conducted as part of training for new employees; social
welfare and environmental protection activities of employee
associations*1; and providing information on volunteer
activities via the intranet. In
this way, we provide various
opportunities and venues toparticipate in social contribution
activities.

Company-wide cleanup activity

Toyota Industries Report 2021

We hold an annual local community meeting for the purposeof sharing and resolving various issues in each community.
This meeting is attended by local community
representatives and responsible persons of Toyota Industries
in the general administration, environment and other relevant
departments. Depending on the theme of the meeting,representatives from thelocal government also join.
Participants exchange opinions
not only on our businessactivities and associatedenvironmental risks but also on
local events and activities forcrime/disaster prevention andLocal community meeting
traffic safety.
Major Social Contribution Activities of Toyota Industries andGroup Companies
Theme

SocialwelfareActivities
Events to interact with persons with disabilities*2• “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 withdisabilities by providing opportunities to set up stalls• Volunteer listening activities at elderly care facilities*2
Supporting measures against COVID-19 (worldwide) (P. 59)

Support for Youth Invention Clubs*2• Monozukuri workshops for elementary school children during
summer vacations
Youth• Holding handmade kite-flying competitions• Running craft corners at local events
development
Providing monozukuri lessons at school
Holding Mini Concerts at elementary schools*2
Holding Manufacturing Day event online (U.S.A.) (P. 59)
Initiatives for forest conservation• Tree-thinning activities for conservation of prefecture-owned
forests
Environmental • Producing and donating benches that made effective use ofthinned wood
protection
Providing “Aim for the 21st Century-Style Monozukuri”
environmental education program for elementary school
students (P. 59)
Participation in local traditional event (Mando Festival)*2
Road cleanup activities in areas around plants
Community
Activities to raise awareness for traffic safetycontribution
Crime prevention patrols
Drill on feeding power to an evacuation shelter (P. 59)

Other*1: Voluntary organizations formed by
employees at each job level

58

Link to social
contribution
activities

Holding charity concert*2
Support for international NGO through volunteer activities to collectspoiled postcards and others
Periodic blood donation drives(Activities without country designation were conducted in Japan.)*2: Canceled in fiscal 2021 as a measure to prevent the spread of COVID-19

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

Activity Examples of the Toyota Industries GroupWorldwide Supporting Measures against COVID-19

Social welfare

In view of the global spread of COVID-19, Toyota Industries and its Group companies across the world have been conducting
social contribution activities corresponding to the needs of each region where we do business.
• Manufacturing and donating face shields• Donating protective equipment tomedical facilities, local governments andother organizations• Lending and donating trucks and othertransportation equipment• Donating food
• Making monetary donations to NPOs
and various funds

Manufacturing anddonating face shields

U.S.A. Holding Manufacturing Day Event Online

Donating protective equipment tomedical facilities, local governments
and other organizations

Donating transportation equipment

The Raymond Corporation

Youth development

The Raymond Corporation, a subsidiary manufacturing and selling warehouse trucks, holds a Manufacturing Day event every
October for local high school students to learn about manufacturing operations. In fiscal 2021, the event was held online andattended by more than 2,000 students. They gained a deeper understanding of the manufacturing industry through a virtual
plant tour and interactive quizzes.
Japan Providing “Aim for the 21st Century-Style Monozukuri” Environmental Education Program for
Elementary School Students

Environmental protection

The Higashiura Plant in Aichi Prefecture hosted the “Aim for the 21st Century-Style Monozukuri,”an environmental education program for fifth graders living in Higashiura-cho. The program wasdesigned to spark an interest in monozukuri and raise safety and environmental awarenessamong children. For this 12th event, we invited 63 students from Ikuji Public Elementary
School in Higashiura-cho. They learned about our ingenuity in production operations and oursafety and environmental efforts through fun activities, including an experiment to turnwastewater into clean water, walking on the plant’s animal path*3 and quizzes.
*3: Safe passage created solely for foxes and other small animals

Experiment to turn wastewater into clean water

Japan Drill on Feeding Power to an Evacuation Shelter

Community contribution

Toyota Industries has concluded a disaster prevention agreement with six cities and towns
where our plants are located. At the Obu Plant in Aichi Prefecture, we conduct powerfeeding drills to set up a system to ensure a stable power supply to an evacuation shelter on
its premises when external power supply is disrupted. In fiscal 2021, we conducted a drill
to supply high-output power to the plant’s gymnasium, which will serve as an evacuation
shelter during a disaster for local residents and people unable to return home, by connecting
Company-owned hybrid vehicles and electric lift trucks to AC couplers developed in-house.
Power-feeding drill using Company-owned
vehicles and electric lift trucks■ Status of Social Contribution Activities in Fiscal 2021

Europe3,578 persons from32 companies
Australia/Asia
698 persons from
13 companies

Japan
11,181 persons
from 31 companies

CSR Material Issue

Americas
2,767 persons
from 25 companies

Number of participants insocial contribution activities*4

18,224 persons from 101 companies
Amount spent on social contribution activities*4

Total of ¥840 million*4: On a consolidated basis including Toyota Industries and its major subsidiaries

59

Vision for Environmental Activities /Structure to Implement Environmental Management
Sixth / Seventh Environmental Action Plans
Establishing a Carbon Neutral Society
Establishing a Recycling-Based Society
Reducing Environmental Risk andEstablishing a Society in Harmony with Nature
Promoting Environmental Management

Environmental Initiatives

P. 60–61
P. 62–65
P. 66–67
P. 67–68
P. 69
P. 70–71

Vision for Environmental Activities
We have achieved the targets of the Sixth Environmental Action Plan and announced the Seventh Environmental
Action Plan in fiscal 2022.

Global Environmental Commitment(Environmental Policies)
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.
Our four main action themes are establishing a carbon
neutral society; establishing a recycling-based society;reducing environmental risk and establishing a society
in harmony with nature; and promoting environmental
management, with the first three founded on the latter. Basedon these pillars of action, the entire Toyota Industries Groupwill dedicate concerted efforts to realizing a prosperous life inharmony with the natural environment.
Link todetails

Aiming at building a sustainable society which enables the
harmonious coexistence of nature with our daily lives

Environmental
risk reduction
Society inharmony withnatureCarbon neutral
society

Recyclingbasedsociety

Environmental Management

Notional Diagram of Global Environmental Commitment

Environmental Vision 2050 and Environmental
Action Plans
We have defined our Environmental Vision 2050 in relation to
the four action themes specified in the Global Environmental
Commitment, which represents our basic approach toenvironmental activities. As milestones toward achieving thisvision, we formulate five-year environmental action plans andresolutely undertake activities in accordance with each plan.

60

Toyota Industries Report 2021

Environmental Vision 2050
(1) Establishing a carbon neutral 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 asociety in harmony with nature➡ Generate positive influence on biodiversity(4) Promoting environmental management➡ Enhance consolidated environmental management andpromote enlightenment activities

Achievements of the Targets of the Sixth
Environmental Action Plan
Toyota Industries completed its Sixth Environmental Action
Plan covering the five years from fiscal 2017 to fiscal 2021.
The plan laid out targets, or action items, related to
improvement of environmental performance, such as
reducing CO2 emissions and the volume of waste generationfrom production activities, and we successfully achieved alldesignated targets.
As for the conservation of biodiversity, we promoted
efforts to expand a habitat for living organisms, including thecreation of an animal path. In order to improve eco-conscious
brand image, we proactively disclosed relevant information.
As a result, we were selected for the A List, a list of thehighest-rating companies, in a survey conducted by CDP*
on climate change and water security. (See Summary of the
Sixth Environmental Action Plan on pages 62–63 for details.)* An international NGO running a project in which institutional investors work together andrequest companies around the world to disclose their strategies against climate change
and greenhouse gas emissions data

Formulation of the Seventh Environmental Action
PlanToward the realization of our Environmental Vision 2050,
we have formulated another five-year plan, the Seventh
Environmental Action Plan. The plan incorporates more
ambitious targets for the four action themes specified in the
Global Environmental Commitment, including a new target
on the introduction of renewable energy. Going ahead,
the Toyota Industries Group will work as one team andcommit itself to achieving these targets. (See the Seventh
Environmental Action Plan on pages 64–65 for details.)

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

Structure to Implement Environmental Management
Positioning environmental initiatives 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.

Promotion of Environmental Management
SystemToyota Industries has positioned environmental initiatives 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.
As in the previous fiscal year, in fiscal 2021 we conducted
introductory educational courses to foster the knowledge
needed for environmental management and an introductory
educational course for environmental audits to cultivate
knowledge and techniques of internal audits. As department
heads and other personnel in managerial positions
proactively attended these courses, we were able to promote
the enhancement of environmental management and thedevelopment of internal auditors.
Environmental Management Structure
Organizations

Committees
President

Environmental Committee

Internal audit

Specialized committees

Responsible
internal auditor

Product Environment
Subcommittee•Team leader•Supervisingauditors

Production Environment
Subcommittee•Auditors
CO2 Zero Emissions
Challenge Subcommittee
Chief environmental
administrator

Admin office

Head Office

Divisions

Corporate Planning

Materials Handling
Equipment

R&D
Purchasing

Division-Based
Promotion Committees

Environmental Audits
Toyota Industries implements annual internal environmental
audits as well as external audits carried out by anindependent third-party institute.
In an external audit, a third-party institutecomprehensively examines environmental initiatives, relevant
procedures and accomplishments of departments within the
Head Office and business divisions. The results of each audit
are reported to the president, and by sharing both positive
and negative points throughout Toyota Industries, we work
to further improve our environmental initiatives. In fiscal 2021,
the external review identified no non-conformance issues.
The review, however, pointed out some matters at one plantthat could potentially constitute non-conformance. We havebeen making improvements regarding these matters andsharing details with other plants.
In fiscal 2021, COVID-19 made it difficult to conduct aninternal audit per the usual procedure. In order to promote
our environmental initiatives even during the pandemic,
we made particular efforts to conduct an audit in a more
efficient manner compared with previous years. Specifically,
we narrowed down the target of the audit to three points
having significant influence on Company-wide EMS activities,
namely the environmental management status of the EMS
administrative office of each business division; status oflegal compliance at plants; and on-site environmental
management status of the Power Office. Along with raisingaudit efficiencies, we tried to conduct the audit in a way tolink the results to a further improvement in the environmental
response of each business division by forming audit teams
mainly by members of each business divisions’ environmental
administrative office, who are well-versed in environmental
audits. As focused areas of audits, we selectedenvironmental policy management and on-site environmental
management and confirmed how environmental management
and other policies have taken root, as well as implemented
this procedure Company-wide and checked if there are any
environmental risks.

VehicleEngineAcquisition of ISO Certification

Quality Assurance
Human Resources
General Administration

Compressor
Electronics
Textile Machinery

Environmental Conservation Organization by
manufacturing plants(environmental risk management overseen
by plant managers)

In order to facilitate environmental initiatives in a more
efficient and organized manner, Toyota Industries has
acquired ISO 14001 certification, the international standard
for environmental management systems. Please visit our
website for Toyota Industries bases that have obtained thecertification.
Link todetails

61

Summary of the Sixth Environmental Action Plan
We have achieved all targets laid out in the action plan covering the period from fiscal 2017 to fiscal 2021.

With an eye to building a sustainable society which enables
the harmonious coexistence of nature with our daily lives,
we formulated the Sixth Environmental Action Plan forthe period from fiscal 2017 to fiscal 2021 and promoted

activities according to the plan. Under the leadership of thepresident, we worked in unison and successfully achieved
all targets.

■ Production Related
Establishing a Carbon Neutral Society
Action Policies/Specific Actions

FY2021 Achievements

Reduce CO2 emissions from production activities•Develop and introduce production engineering
technologies with lower CO2 emissions•Reduce CO2 emissions by fully implementing
improvement activities on a daily basis•Develop innovative CO2 reduction technologies that utilize
clean energy•Manage greenhouse gases other than CO2
Reduce CO2 emissions from production-related
logistics•Improve transportation efficiency through such measures
as modal shift and better cargo loading efficiency

Subject

CO2
emissions

ScopeControl Items

Base Year(FY)

Nonconsolidated

Total
emissions2006

Emissionvolume perunit of
Non1
consolidated production*

2006

Emissionvolume perunit ofproduction

2007

GlobalCO2
Nonemissions
from logistics consolidated

FY2021 Targets
Achievements

Targets

–16%

–10%

–29%

–26%

–32%

–30%

–33%

–28%

Establishing a Recycling-Based Society
Action Policies/Specific Actions

Promote measures against resource depletionby 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 each country/region
and develop and promote appropriate measures

FY2021 Achievements
Subject

Scope

Japan
consolidated
Waste
volumeNonconsolidated

Control Items

Waste
volume perunit ofproduction

Base Year(FY)

FY2021 Targets
Achievements

Targets

–45%

–27%

–45%

–29%

2006

Reducing Environmental Risk and Establishing a Society in Harmony with Nature
Action Policies/Specific Actions

Further reduce emissions of substances of concern•Minimize the use of substances of concern by promoting
efficient production activities

62

Toyota Industries Report 2021

FY2021 Achievements

FY2021 Targets

Subject

Scope

Control Items

Base Year(FY)

Achievements

Targets

VOC*2emissions

Nonconsolidated(automobile
body)

Emissionvolume perunit ofproduction

2006

–36%
(24g/m2)–36%(24g/m2)

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives■ Product Related
Sixth Environmental Action Plan Targets
Action Policies

Specific Actions

FY2021 Achievements•Developed improved variable-displacement typecompressor•Developed electric compressor for mild hybrid
vehicles•Developed new vehicle•Reduced air consumption of air-jet looms•Developed next-generation air compressor

Establishing a
Carbon Neutral
Society

Reduce CO2 emissions throughproduct and technology
development•Develop technologies that contribute to an even greater levelof energy efficiency•Develop products and technologies that respond to electrification•Develop technologies to enable weight reduction•Reduce energy loss
•Develop technologies for the realization of a hydrogen-based society

Establishinga Recycling-BasedSociety

Implement initiatives to promote
3R (reduce, reuse and recycle)
design for effective resource
utilization•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 of technologies toenable weight reduction and downsizing•Promote reuse of components and resources•Developed new DC-DC converter•Developed new engine•Developed new AC inverter•Promoted use of recycled materials

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

Reduce emissions to improve
air quality in urban areas in all
countries and regions•Develop engines that meet future regulations•Satisfied Euro 6d and Japan’s 2018 regulations

Manage chemical substances
contained in products•Investigate chemical substances contained in products andmanage switching over of SVHC*3 and other substances ofconcern to other substances•Supported business partners in Japan for establishinga chemical substance management system•Conducted survey on chemical substances containedin products■ Others
Sixth Environmental Action Plan Targets
Action Policies

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

Promoting
Environmental
Management

Specific Actions

FY2021 Achievements

Augment activities related toprotection of biodiversity•Share the biodiversity guidelines across all Toyota Group
companies and contribute to the expansion of a habitat forliving organisms•Formulate and promote plans to link activities and connect
green zones by undertaking activities for conservation of
biodiversity throughout the Toyota Industries Group, including
at consolidated subsidiaries in and outside Japan

Augment and promoteconsolidated environmental
management•Build a global environmental management system and promote
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 fromoccurring
Enhance risk communication with relevant organizations andlocal residents
Achieve the highest-level environmental performance in eachcountry and region•Enforce strategic environmental management that integrates
environmental activities and business activities•Promoted mitigation activities•Underwent legal compliance audit onenvironment-related laws at a site in China

Enhance education andenlightenment activities•Extend the scope of Toyota Industries’ enlightenment activities toconsolidated subsidiaries in and outside Japan•Give back to society the outcomes of enlightenment activities•Held various events during Environment
Strengthening Month•Provided education on environmental management

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 online briefing sessions for business partners
in Japan•Held an environment-related liaison meeting ofbases in China•Pursue higher brand image through proactive information
disclosure of information on environmental activities•CDP climate change: ranked A(on a performance band of A to F)•CDP water security: ranked A(on a performance band of A to F)•Received SDGs Environmental Award under
Logistics Grand Prize program•Selected as “Good Practices” under Aichi andNagoya Biodiversity Best Practice program(Biotope at the East of Obu Station and animal pathwithin Higashiura Plant)

Improve eco-conscious brand
image•Participated in All Toyota Green Wave Project•Conducted biodiversity conservation activities
within Toyota Industries premises*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 ofreduction rates of all businesses is used as our management index.
*2: Volatile Organic Compounds*3: Substances of Very High Concern

Link to theaction plan

63

Seventh Environmental Action Plan
We have formulated another five-year action plan for the period from fiscal 2022 to fiscal 2026.

We have formulated the Seventh Environmental Action
Plan, a five-year plan for the period from fiscal 2022 tofiscal 2026. In the plan, we have set targets for each of thefour action themes specified in the Global Environmental
Commitment, namely, 1) establishing a carbon neutral

society; 2) establishing a recycling-based society;3) reducing environmental risk and establishing a society
in harmony with nature; and 4) promoting environmental
management. We will undertake initiatives toward achieving
our Environmental Vision 2050.

■ Production Related
Establishing a Carbon Neutral Society
Action Policies/Specific Actions

Seventh Environmental Action Plan

Reduce CO2 emissions from production activities•Develop and introduce production engineering
technologies with lower CO2 emissions•Fully implement improvement activities on a daily basis•Proactively introduce clean energy

Reduce CO2 emissions from production-related
logistics•Improve transportation efficiency through suchmeasures as modal shift and better cargo loading
efficiency

Subject

Scope

Control Items

Base Year (FY)

Targets

CO2
emissionsGlobalTotal emissions

2014–25%*1

RenewableenergyGlobalIntroduction rate

—

15%

CO2
emissionsfrom logistics

Non-consolidated

Emission volume
per unit ofproduction*2

2014

–11%

Establishing a Recycling-Based Society
Action Policies/Specific Actions

Promote effective resource utilization in
production activities•Reduce the volume of discarded materials by taking
action at the source, such as improving yields andother measures•Promote water conservation activities corresponding
to the water situations in each country and region•Reduce use of packaging materials

64

Toyota Industries Report 2021

Seventh Environmental Action Plan
Subject

Scope

Control Items

Base Year (FY)

Targets

Waste
volumeNon-consolidated

Waste volume
per unit ofproduction

2014

–12%

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives■ Product Related
Seventh Environmental Action Plan Targets
Action Policies

Establishing a
Carbon Neutral
Society

Establishinga Recycling-BasedSociety

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with NatureSpecific Actions•Develop technologies that contribute to an even greater level of energy efficiency•Develop products and technologies that respond to electrification•Develop technologies to enable weight reduction•Reduce energy loss
•Develop technologies for the realization of a hydrogen-based society

Reduce CO2 emissions through product andtechnology development

Implement initiatives to promote 3R (reduce, reuse
and recycle) design for effective resource utilization•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 of technologies to enable weight reduction
and downsizing•Promote reuse and recycling of components and resources

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

Manage chemical substances contained in products•Investigate chemical substances contained in products and manage switching overof SVHC*3 and other substances of concern to other substances■ Others
Seventh Environmental Action Plan Targets
Action Policies

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

Further reduce emissions of substances ofconcern from production activities

Specific Actions• Minimize the use of substances of concern such as VOC*4 by promoting efficient
production activities

Augment activities related to protectionof biodiversity•Contribute to conservation of biodiversity in local communities based on the individual
characteristics of Toyota Industries’ plants• Promote activities that involve local parties and experts, and instill awareness among employees

Augment and promote consolidated
environmental management•Comply with environment-related laws in each country and region•Prevent environmental irregularities by strengthening risk reduction activities•Achieve the highest-level environmental performance in each country and region

Enhance education and enlightenment
activities•Increase knowledge/awareness and promote voluntary actions toward achieving
the Global Environmental Commitment

Promote environmental activities incollaboration with business partners•Ensure compliance with laws and regulations and improve environmental performancebased on the Environmentally Preferable Purchasing Guidelines

Improve eco-conscious brand image•Pursue higher brand image through proactive disclosure of information on
environmental activities

Promoting
Environmental
Management*1: As a more ambitious target, we are aiming for a 50% reduction by fiscal 2031 from the fiscal 2014 level.
*2: 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 ofreduction rates of all businesses is used as our management index.
*3: Substances of Very High Concern*4: Volatile Organic Compounds

Link to theaction plan

65

Establishing a Carbon Neutral Society
We have been working to reduce CO2 emissions in our business activities on a global scale and at the same time
accelerate our efforts to develop more environment-friendly products.

Case
ExampleCSR Material Issue

Our Approach
For Toyota Industries, dealing with global warming is
not just a “risk.” It also presents “opportunities” in doing
business to both differentiate ourselves by leveraging
our technology-based product appeal and conduct
eco-conscious production activities.
For the ultimate goal of establishing a carbon
neutral society as stated in our Global Environment
Commitment, we set a goal of establishing a zero CO2emissions society on a global basis in our Environmental
Vision 2050 and have been making efforts to reducegreenhouse gas (GHG) emissions throughout our entire
supply chain.
In the area of product development, we havebeen promoting the development of technologies
related to environmentally friendly products in various
fields, including electrification. In production activities,
promoting thorough energy savings and utilizing
renewable energy and hydrogen are the two pillars of
our activities. As specific efforts, we will adopt solar
and other renewable energy sources and effectively
utilize clean energy, such as hydrogen, while thoroughly
eliminating wasteful use of energy in production
processes and increasing the efficient use of energy.

Progress in Efforts to Establish a Carbon Neutral
Society

Summary CO2 Emissions (Production Activities)
FY2021 Results
Total emissions (non-consolidated)

16
29% reduction (vs FY06 level)

FY21 target:

10% reduction(vs FY06 level)

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

FY21 target:

26% reduction(vs FY06 level)

Under the Sixth Plan, we worked toward achieving fiscal
2021 targets of reducing total non-consolidated CO2
emissions by 10% and global emission volume per unit ofproduction by 26%, both from the fiscal 2006 level, andsucceeded in achieving both targets.

Reducing CO2 Emissions by Creating
Energy-Saving Production Lines Linked
to Product Design

The Anjo Plant in Aichi Prefecture develops and manufactureselectronic devices and charging equipment for electrified
vehicles, including hybrid electric vehicles (HEVs), plug-in
hybrid electric vehicles (PHEVs), battery electric vehicles(BEVs) and fuel cell electric vehicles (FCEVs). In the Electronics
Division, which is responsible for the production of theseproducts, the design department and production engineering
department collaborate closely to develop commercialization
technologies, which cover every aspect from new productdevelopment to process design, and mass production
technologies in a synchronized manner. While doing so, theywork to improve both the excellence level of products andenvironmental performance during the production stage.
At the Anjo Plant, production processes account for
about 40% of its electricity consumption, roughly 60%of which is being used in thermal processes. Based on
the Electronics Division’s roadmap to reduce the plant’s
CO2 emissions by 2050, the plant has set a target to cut
its electricity consumption by 70% and incorporated thedual aims of reducing the number of heating processes
and increasing their efficiency into the said synchronizeddevelopment efforts. As a result, the plant successfully
created energy-saving production lines linked to productdesign in fiscal 2021.
As a specific improvement example, the plant first figuredout temperature conditions common to three out of thefour heating processes. Moving the assembly of low heatresistance components after the heating process further
enabled the consolidation of these three processes into one.
For the remaining one process, the plant adopted a local
heating method, which requires less space than conventional
equipment and has high energy efficiency as it can quickly
heat up a workpiece. This led to higher efficiency and areduction of energy consumption to one-fifth of the previous
volume.
These activities also enabled the plant to reduce its
annual CO2 emissions by about 90 tons.
Consolidating Heating Processes and Introducing a Local
Heating Method
Portion that needs heating

Portion heatedHeating processes
Beforeimprovement

Consolidating

After improvement

66

Toyota Industries Report 2021

Local
heatingCompany Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

Case
ExampleEfforts of an Overseas Base toward
Realizing a Zero CO2 Emissions Society

Vanderlande, a subsidiary engaging in the logistics solutions
business in the Netherlands, has signed The Climate Pledge,
a commitment to address climate change. The aim is toachieve a net-zero carbon footprint by 2040, 10 years earlier
than the Paris Agreement’s 2050 target. Based on thispledge, the company will disclose its CO2 emissions on aregular basis and promote its carbon neutral strategy.
The company is actively engaged in the development ofequipment and systems that contribute to the reduction of
CO2 emissions by its customers, and in carbon offsetting
through such activities as tree planting. Furthermore, thecompany is promoting activities to build a carbon neutral
society, as it plans to install 2,600 solar panels at its head
office building by the end of 2021.

Establishing a Recycling-Based SocietyWith a view to establishing a recycling-based society, we have been striving to reduce waste and the usage ofwater and other resources.

Our Approach (Waste)
Mass consumption, if continued on the back of the
expanding world population and economic growth, will
eventually deplete natural resources. Toyota Industries
believes it is essential to promote 3R (reduce, reuse andrecycle) design for effective resource utilization and therecycling of waste as resources.
We set a goal of minimizing the use of resources in
our Environmental Vision 2050. Accordingly, we havebeen making various efforts, including extending the lifeof components as well as reducing their size and weightin the area of product development. In production
activities, implementing measures to reduce resource
consumption at the source, ensuring the maximum
resource recycling within a plant and reducing waste byusing leading-edge technologies are the three pillars of
our activities.

Progress in Efforts to Establish a RecyclingBased Society

Summary Waste Volume (Production Activities)
FY2021 Results
Waste volume per unit of production(non-consolidated)

45% reduction (vs FY06 level)

FY21 target:

29% reduction(vs FY06 level)

production compared with the fiscal 2006 level by 29% on
a non-consolidated basis and by 27% for Toyota Industries
and its consolidated subsidiaries in Japan. Both targets wereachieved successfully.
Case
ExampleThe Nagakusa Plant, a vehicle assembly base in Aichi
Prefecture, has been carrying out an initiative to reduce thesludge generation volume. Sludge, making up the largest
portion of the plant’s waste, is generated when flocculatingsuspended substances contained in wastewater from thevehicle painting process. The plant treating wastewater fromthe electrodeposited painting process, in particular, generates
about 432 tons of sludge every year. Agents are used toflocculate suspended substances, and the sludge generation
volume varies depending on which agent to use. The agent
in use at the facility was found to produce more sludge thanothers. Adding a fixed amount of the agent to wastewater
regardless of its content of suspended substances wasanother cause for extra sludge generation. To counterthe situation, the plant undertook improvement activities
with a focus on the types and amount of agents used forflocculating.
After repeated tests, the plant selected and switched toan agent that produces less sludge. The plant also installed
a sensor to keep the addition of the agent to a minimum
according to the quality of wastewater. Through these
improvements, the plant was able to reduce its annual sludge
volume by about 122 tons.
Installing a Sensor to Control the Amount of Agent Added

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

After improvement

Turbidity

45

Before improvement(Adding a fixed amount)

FY21 target:

27% reduction

Initiative to Reduce Sludge Volume

Under the Sixth Plan, we worked toward achieving the
fiscal 2021 targets of reducing waste volume per unit ofAmount of agent added
Turbidity

Amount of agent added

CSR Material Issue

Time

67

Case
ExampleEfforts for Reducing the Use of Plastics

The Toyota Industries Groupseeks to reduce ocean
plastic pollution by making
improvements in its businessactivities and promoting behavior
change among employees.
Yantai Shougang TD
Automotive Compressor Co., Ltd.
(YST), a subsidiary manufacturing
car air-conditioning compressors
in China, has been striving to
reduce the use of plastic bags
Reusable shopping bags handed out
to employees (YST)
by giving out reusable shoppingbags to employees and encouraging them to use these bags.
Toyota Material Handling Mercosur Indústria e Comércio
de Equipamentos Ltda (TMHM), a subsidiary manufacturing
materials handling equipment in Brazil, carried out activities
to raise employees’ awareness of environmental degradation
caused by plastics by encouraging them to use reusable
shopping bags as well as their own water bottles. As part ofthese activities, TMHM held a “My Bags and My Bottles” photo
contest, asking employees to post photos of themselves andtheir families using reusable bags and personal water bottles.
Through these activities, TMHM promoted the action ofindividuals to reduce the use of plastics.

Case
ExampleAt the suggestion of employees, TD Deutsche
Klimakompressor GmbH (TDDK), a subsidiary manufacturing
car air-conditioning compressors in Germany, supported a
program to promote health and environmental awarenessamong students at a local elementary school. Specifically,
TDDK took part in funding the donation of a drinking fountainto help students appreciate the value, use and health benefitsof drinking water.
With the support of the parent-teacher association (PTA)and TDDK, students drew a picture of a memorial tree behindthe donated water fountain, and it became an opportunity forthem to increase their water awareness.

Water fountain installed with the support of TDDKCase
Example“My Bags and My Bottles” photo contest (TMHM)

CSR Material Issue

Our Approach(Water Resources)
Water is the basis of all life on the Earth and is an
irreplaceable and valuable resource. Every year,
however, we have been witnessing the increasingly
severe impacts of droughts, floods and other natural
disasters resulting from climate change as well as
shortages in drinking water and agricultural water
caused by the growth in the world’s population. Manyof the processes of Toyota Industries use water forwashing and painting products, and we regard thewater supply crunch caused by climate change andpopulation growth as a significant risk to our businessactivities.
Accordingly, we have set a goal of minimizing theenvironmental impact on water resources and havebeen monitoring water input and output in each country
and region and promoting the recycling of water andreduction of water intake.

68

Toyota Industries Report 2021

Initiative for Raising Awareness of Water
Resources

Initiative for Reducing Wastewater
Discharge through Water Recycling

Each production base of Toyota Industries has been making
various efforts to promote the recycling of water andreduction of water withdrawal with the aim of conserving the
Earth’s water resources.
Toyota Material Handling Manufacturing Sweden AB(TMHMS), a subsidiary manufacturing materials handlingequipment in Sweden, has been proactively recycling water.
Conventionally, wash water drained from the painting process
had been treated at a wastewater treatment plant and thendischarged to the public sewerage system. Since TMHMS
upgraded this flow in 2010, they started to distill wastewaterby distillation equipment within the plant in a closed loop, usea carbon filter to remove contaminants and salt content andprevent growth of bacteria through ultraviolet treatment. This
has enabled the plant to purify and reuse wastewater andconsequently cut its wastewater discharge by about 90%.
While recognizing the importance of water, we willcontinue to promote water conservation activities matched tothe individual situations of each plant.
Flow of Wastewater Recycling Process
Ion-exchange unit

Ultraviolet treatment
equipment

Purified water back to
the painting process

Wastewatertank

FilterDistillationequipment

Carbon filter

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

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 in environmental laws and regulations on a global basis. At the same time, we have been promoting
activities for the conservation of biodiversity toward realizing a society in harmony with nature.

CSR Material Issue

Our Approach(Conservation of Biodiversity)
Deforestation is now proceeding in various parts of theworld, causing the fragmentation of the habitats of livingorganisms. In order for humankind to live in harmony
with nature, it is essential to protect nature in eachregion.
In our Environmental Vision 2050, we set a goalof generating a positive impact on biodiversity andhave been conducting various business activities
while continuously paying attention to their influenceon the natural environment. We have also formulated
the biodiversity policy and been promoting 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.

Case
ExampleCreating an Animal Path to Improve
Natural Habitats of Living Organisms

As part of efforts to conserve biodiversity, Toyota Industries
collaborates in an initiative of the Aichi prefectural government
to promote the development of ecological networks. In fiscal
2012, we joined the Chita Peninsula Ecological Network
Council and have since been carrying out activities linked to
the local natural environment while working with concerned
parties, including local governments, companies, NPOs,
expert bodies and students.
In March 2018, we implemented an initiative at theHigashiura Plant in Aichi Prefecture to expand the habitat offoxes in collaboration with the Council. Recently, we havefound that foxes are living in the wooded area surrounding
the plant. But because there is not a large enough habitat,some were fatally involved in traffic accidents on theneighboring roads. To provide a safe passage between
these wooded areas, Toyota Industries created an animal
path within the plant premises. Later, we installed sensorequipped cameras and have been checking the inhabiting
status of foxes on an ongoing basis. Since observing a fox
on the animal path for the first time in October 2018, we havebeen seeing foxes almost every month, and in June 2020,
observed a family of foxes using thepath. We will continue to monitor
the inhabiting status of foxes andimplement additional measures
as necessary to create a better
environment.

Case
ExampleBases in China Conducting a Unified
Activity toward a Society in Harmony
with Nature

As an effort toward contributing to a society in harmony
with nature, the Toyota Industries Group’s bases in China
conducted a unified activity called “China TICO Group
Cleanup Day” in fiscal 2021. In support of the World
Cleanup Day event that takes place every September, ourbases in China conduct a cleanup activity to coincide withthe event and unite their individual efforts into one activity
to contribute to the conservation of ecosystems and theestablishment of a society in harmony with nature. The event
held in fiscal 2021 was joined by five companies, namely
Toyota Industry (Kunshan) Co., Ltd. (TIK), TD AutomotiveCompressor Kunshan Co., Ltd. (TACK), YST, Global Power
Co. Ltd. (Tailift) and Zhejiang
Aichi Industrial Machinery Co.,
Ltd. We will increase the numberof participating bases in fiscal
2022 and further enhance ouractivities for the conservation of
Cleanup activity on China TICO Groupecosystems.

Cleanup Day (TACK)CSR Material Issue

Our Approach(Substances of Concern)
Currently, air pollution by chemical substances has
become a global issue having equal importance as
global warming. As such, countries around the world
are adopting more stringent environmental regulations
each year. How Toyota Industries responds to theseregulations will have a significant impact on the businessactivities we undertake in each country.
Based on this perception, we have been taking
a forward-looking approach, anticipating fuelefficiency and emissions regulations to be enforcedby each country and region, and promoting productdevelopment accordingly. In production activities, wehave been working to minimize the use of substancesof concern such as volatile organic compounds (VOC),
which are causal substances of photochemical oxidants
that generate smog.

Fox pups using the animal path69

Progress in Efforts (Substances of Concern)

Summary VOC Emissions (Production Activities)
FY2021 Results
Emissions per unit of production(non-consolidated/automobile body)36% reduction (vs FY06 level)

FY21 target:

36% reduction

Under the Sixth Plan, we set a target of reducing emission
volume per unit of production for VOC from the automobile
body painting process by 36% from the fiscal 2006 level
and worked to reduce VOC emissions. In fiscal 2021, we
continued our efforts to increase the recovery rate andenhance the maintenance and management of thinner.
Consequently, we were able to cut down emission volume
per unit of production in fiscal 2021 by 36%.

(vs FY06 level)

Promoting Environmental Management
Toyota Industries proactively engages in initiatives to reduce environmental risk and discloses various
environmental information.

Status of Compliance with Environmental Laws
With an eye to minimizing environmental risks to local
communities, the Toyota Industries Group is striving toprevent violations of environment-related laws. Such initiatives
include taking measures against the recurrence of potentiallyserious near-accidents that may result in legal violations andperforming environmental risk inspections at its plants.
In fiscal 2021, there was one case of violation of water
quality-related laws at one of our consolidated subsidiaries
in Japan. We have taken appropriate action and thoroughly
implemented preventive measures. We have also shared
relevant information about the case along with its preventive
measures within Toyota Industries and with other Group
companies to prevent a similar incidence throughout the Group.

Soil and Groundwater Pollution Countermeasures
Toyota Industries carries out surveys and purification ofsoil and groundwater contaminated from the past use oftrichloroethylene and other substances of concern. 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, we have drilled observation
wells at all plants to conduct regular checks.

Responding to More Stringent Environmental
Regulations in China
Toyota Industries’ production bases in China manufacture
various products, including materials handling equipment, carair-conditioning compressors and foundry parts.
In recent years, China has been making frequent revisions
to its environmental laws on air and water quality, tightening
regulations with each revision. We regard a violation of theseenvironmental laws as a business continuity risk to the Toyota
Industries Group, as it may entail the suspension of production
or other penalties, which in turn will damage our brand image
and directly lead to a disruption of our supply chain.
In order to ensure compliance with environment-related
laws at our bases in China, since September 2019 we havebeen reinforcing environmental management and support in70

Toyota Industries Report 2021

the country, with Toyota Industries Management (China) Co.,
Ltd. (TIMC) taking the lead. Specific efforts include providing
updates on revisions to environment-related laws, checking
the status of compliance at each base and providing support
for improvement. We will also promote mutual improvementby sharing information and encouraging communication
among the bases.
In September 2020, TIK underwent a third-party legal
compliance audit. Measures have been taken against issues
pointed out in the audit, and common issues have been shared
among our bases in China to prevent a similar incidence.
In October 2020, we held a safety and environmental
liaison meeting of the Toyota Industries Group’s bases in
China. During the meeting, environmental officers from thesebases and Toyota Industries shared
the Group’s environmental action
policy in China, gave briefings on thelatest updates on the country’s legal
trends and exchanged views.
We will continue to carryout appropriate environmental
management and support so as toensure compliance with environmental
laws and reduce any business
Legal compliance audit
continuity risk at our bases in China.
at a base in China

Verification by a Third Party
Toyota Industries obtains third party verification in order toincrease the credibility of its data on energy-derived CO2
emissions, waste generation volume, water withdrawal andwastewater discharge.
We will continue to utilize this third party verification in
making continuous improvements
in our environmental activities and
Link todisclose data to our stakeholders indetailsa more transparent manner.

External Environmental Evaluations
Toyota Industries fosters environmental communication with our
stakeholders through proactive disclosure of environmental
information. We have been participating in the Ministry of theEnvironment’s project for the establishment of a framework

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

for disclosure of environmental information and examining
better ways to disclose our environmental information.

to individuals, companies and organizations significantly
contributing to the advancement of biogas. TMHMS wasrecognized for its efforts to reduce environmental impact
throughout its entire business activities, such as achieving
zero plant CO2 emissions through the use of biogas andintroducing biogas trucks for transportation between TMHMS
plants and between TMHMS and its business partners.
TMHMS will continue to make a high level of contribution
toward the realization of a carbon neutral society.

Selected as an A-List Company, Receiving theHighest Rating in CDP Surveys
Toyota Industries was selected for the A List in surveys
conducted by CDP on climate change and water security as
a company making especially outstanding efforts to reducegreenhouse gas emissions, mitigate climate change andconserve water resources. Toyota Industries was selected
as an A-List company for climatechange for three consecutive years
since 2018 and for water security
for the second time following 2018.

TOPIC
TMHE Group Receiving the Highest“Platinum” Rating of EcoVadis*1 for
Two Consecutive Years

External Environmental Awards

Toyota Material Handling Europe AB (TMHE), a
consolidated subsidiary overseeing the materials
handling equipment business in Europe, received thehighest “Platinum” rating from EcoVadis in its corporate
sustainability survey. The rating corresponds to the top
1% group of the 70,000 companies that have been
evaluated. The rating was given in recognition of
excellent performance and transparency in information
disclosure.
The TMHE Group has formulated an energy policy
to achieve zero energy muda and has been engaging in
activities based on high sustainability targets. As a
specific, outstanding accomplishment, all TMHE Group
companies achieved 100% use ofelectricity from renewable energy
sources in April 2021. TMHE willcontinue to undertake businessactivities and provide products
and services in a sustainabilityconscious manner.

Toyota Industries’ environmental activities to date have beenhighly acclaimed by external organizations.

Received the SDGs Environmental Award under
the Logistics Grand Prize Program
Toyota Industries received the SDGs Environmental Award,
a special award given under the 37th Logistics Grand Prize
program hosted by the Japan Institute of Logistics Systems.
The program recognizes companies
showing outstanding achievementsin the area of logistics promotion.
The SDGs Environmental Awardis given to excellent initiatives
that contribute to a reduction ofenvironmental impact and are also
helpful for other companies.
Members of the Production

Control Department

TMHMS Winning a Biogas Award 2020
In December 2020, Toyota Material Handling Manufacturing
Sweden AB (TMHMS), a subsidiary manufacturing materials
handling equipment in Sweden, received a Biogas Award
2020 from Biogas Öst Ideell Förening. This award is given*1: An international organization that evaluates thesustainability of supply chain companies

Environmental Impact Flow

INPUT

Energy consumption

15,938 TJ*2

Electricity

1,355,962 MWh

City gas

83,037 km3N

LPG

3,882 tPetroleum products

3,141 kl

Coal products

5,968 t

LNG

1,570 t■ Raw Materials [consolidated]
Raw material consumption

730,270 t■ Water [consolidated]
Water withdrawal

4,548 km3

■ Chemical Substances[non-consolidated]
PRTR law*3 designated substances

1,002 tEnvironmental
Impact Flow

■ Into the Air [consolidated]
CO2 emissions

R&D/Design

Production
Transportation/
Sales
Usage
Recovery/
Recycling

824,841 t-CO2

Greenhouse gases other than CO22,400 t-CO2

CO2 emissions from logistics

14,904 t-CO2

SOx (Sulfur oxides)
NOx (Nitrogen oxides)

Procurement

OUTPUT■ Energy [consolidated]

VOC (Volatile organic compounds)

252 kg160 t
1,276 t■ Chemical Substances[non-consolidated]
Emissions/transfers of PRTR law
designated substances■ Waste [consolidated]
Waste volume

355 t

108,670 t■ Into Waterways (consolidated)
Water pollutants

27 t

Discharge of treated wastewater

2,252 km3

*2: Terajoule is a unit used to measure heat. 1 TJ = 1012 joules*3: 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.

71

Corporate Information

Directors, Audit & Supervisory Board Members,
Senior Executive Officers and Executive Officers ——————————— P72–73
Major Bases —————————————————————————— P74–75
Investor Information ———————————————————————— P76

Directors, Audit & Supervisory Board Members, Senior Executive Officers and Executive Officers (As of June 30, 2021)
Directors
Chairman

Tetsuro Toyoda

Executive Vice
President

Takuo Sasaki

Director

Yuji Ishizaki

Outside Director(Independent)

Shuzo Sumi

Outside Director

Masahiko
Maeda

72

Toyota Industries Report 2021

Apr. 1970
Feb. 1991
Jun. 1991
Jun. 1997
Jun. 1999
Jun. 2002
Jun. 2005
Jun. 2013

Joined Toyota Motor Sales Co., Ltd.
Vice President of Toyota Motor Sales, U.S.A., Inc.
Director of Toyota Industries Corporation
Managing Director
Senior Managing Director
Executive Vice President
President
Chairman (current)

Apr. 1980
Jun. 2009
Jun. 2011
Jun. 2011
Apr. 2013
Apr. 2015
Jun. 2015
Jun. 2016
Jun. 2018

Joined Toyota Motor Co., Ltd.
Managing Officer of Toyota Motor Corporation (TMC)
President of Toyota Financial Services Corporation
Advisor of TMC
Managing Officer of TMC
Advisor of Toyota Industries Corporation
Senior Managing Director
Director and Senior Managing Officer
Executive Vice President (current)

Apr. 1980
Jun. 2012
Jun. 2016
Jun. 2018
Jun. 2019

Joined Toyota Industries Corporation
Managing Officer
Senior Managing Officer
Director and Senior Managing Officer
Director and Senior Executive Officer (current)

Apr. 1970 Joined The Tokio Marine & Fire Insurance Co., Ltd.
(Tokio Marine)
Jun. 2000 Director and Chief Representative in London of Tokio Marine
Jun. 2002 Managing Director of Tokio Marine
Oct. 2004 Managing Director of Tokio Marine & Nichido Fire InsuranceCo., Ltd. (Tokio Marine & Nichido)
Jun. 2005 Senior Managing Director of Tokio Marine & Nichido
Jun. 2007 President and Chief Executive Officer of Tokio Marine &NichidoJun. 2007 President and Chief Executive Officer of Tokio Marine
Holdings, Inc. (Tokio Marine Holdings)
Jun. 2013 Chairman of the Board of Tokio Marine & Nichido
Jun. 2013 Chairman of the Board of Tokio Marine Holdings
Jun. 2014 Director of Toyota Industries Corporation (current)
Apr. 2016 Counselor of Tokio Marine & Nichido (current)
Jun. 2019 Retired as Chairman of the Board of Tokio Marine Holdings

Apr. 1994
Jan. 2018
Jan. 2019
Jan. 2019

Joined Toyota Motor Corporation (TMC)
Managing Officer of TMC
Operating Officer of TMC (current)
Chairman and President of Toyota Daihatsu Engineering& Manufacturing Co., Ltd.
Jan. 2019 Chairman of P.T. Toyota Motor Manufacturing Indonesia
Jun. 2021 Director of Toyota Industries Corporation (current)

Apr. 1981
Jun. 2005
Jun. 2006
Jun. 2008
Jun. 2010
Jun. 2013

Joined Toyota Industries Corporation
Director
Managing Officer
Senior Managing Officer
Senior Managing Director
President (current)

Executive Vice
President

Apr. 1983
Jun. 2010
Jun. 2016
Jun. 2018
Jun. 2019
Jun. 2021

Joined Toyota Industries Corporation
Managing Officer
Senior Managing Officer
Director and Senior Managing Officer
Director and Senior Executive Officer
Executive Vice President (current)

Outside Director(Independent)

Apr. 1975 Joined Mitsubishi Electric Corporation(Mitsubishi Electric)
Apr. 2006 Executive Officer of Mitsubishi Electric
Apr. 2008 Senior Executive Officer of Mitsubishi Electric
Apr. 2010 Representative Executive Officer and President &CEO of Mitsubishi Electric
Jun. 2010 Director, Representative Executive Officer andPresident & CEO of Mitsubishi Electric
Apr. 2014 Chairman of Mitsubishi Electric
Jun. 2015 Director of Toyota Industries Corporation (current)
Apr. 2018 Director and Executive Corporate Adviser of
Mitsubishi Electric
Jun. 2018 Executive Corporate Adviser of Mitsubishi Electric(current)

President

Akira Onishi

Yojiro Mizuno

Kenichiro
YamanishiCompany Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information
Directors, Audit & Supervisory Board Members,
Senior Executive Officers and Executive Officers

Audit & Supervisory Board Members
Apr. 1982 Joined Toyota Industries Corporation
Full-Time Audit &Supervisory Board Member Jun. 2008 General Manager of TMHG Planning Dept.
Jan. 2009 General Manager of Corporate Planning Dept. of
Toru Inagawa
TMHG, Toyota Material Handling Company
Jan. 2013 General Manager of TMHG Management Dept., Toyota
Material Handling Company
Jun. 2014 Managing Officer
Jun. 2016 Senior Managing Officer
Jun. 2019 Executive Officer
Jun. 2021 Audit & Supervisory Board Member (current)

Apr. 1983 Joined Toyota Industries Corporation
Full-Time Audit &Supervisory Board Member Jun. 2016 General Manager of Accounting & Finance Dept.
Toru Watanabe Jan. 2017 Project General Manager of Accounting & Finance
Dept.
Jun. 2020 Audit & Supervisory Board Member (current)

Outside Audit & Supervisory Apr. 1978 Joined Chubu Electric Power Co., Inc. (Chubu ElectricPower)
Board Member(Independent)
Jun. 2008 Director, Senior Managing Executive Officer and General
Manager of Corporate Planning & Strategy Div. of Chubu
Akihisa Mizuno
Electric PowerJun. 2009 Representative Director and Executive Vice President of
Chubu Electric Power
General Manager of Corporate Planning & Strategy Div.
and General Manager of Affiliated Business Planning &Development Dept.
Jun. 2010 President & Director of Chubu Electric PowerJun. 2015 Chairman of the Board of Directors of Chubu Electric
Power
Jun. 2016 Audit & Supervisory Board Member of Toyota Industries
Corporation (current)
Apr. 2020 Director & Advisor of Chubu Electric PowerJun. 2020 Advisor of Chubu Electric Power (current)

Outside Audit & Supervisory Apr. 1977
Board Member
Jun. 2005(Independent)
Apr. 2011
Masanao Tomozoe Apr. 2011

SeniorExecutive
Officers

Jun. 2012
May 2015
Jun. 2015
Jun. 2019
Jun. 2019

Joined Toyota Motor Sales Co., Ltd.
Managing Officer of Toyota Motor Corporation (TMC)
Senior Managing Officer of TMC
Senior Vice President of Toyota Motor North
America, Inc.
President and Representative Director of Toyota
Motor Sales & Marketing Corporation
Advisor of Central Japan International Airport
Company, Limited
President and CEO of Central Japan International
Airport
Audit & Supervisory Board Member of Toyota
Industries Corporation (current)
Advisor of Central Japan International Airport

Yuji Ishizaki*

Masahiro Kawaguchi

Koichi Ito

Hiroshi Matsumoto

Kazunari Masuoka

Toshihiko Shimizu

Yasushi Kawai

Brett Wood

Hiroaki Kayukawa

Norio Wakabayashi

Hiroaki Matsuda

Hisashi Ichijo* Concurrently serving as directors

Executive
Officers

Nobutomo Yasui
Hiroshi Fukagawa
Keitaro Hara
Hiroshi Kobayashi
Tomoji Tarutani

Shunji Sugimoto
Norio Otake
Shinya Mizutani
Ken Suito

Hisanori Miyajima
Hiroya Akatsuka
Sotaro Kumazawa
Takehiko Oishi

Kenichi Onishi
Yoichiro Yamazaki
Haruhiko Kimata
Shigeru Sawaki

73

Major Bases (Production, Regional Headquarters, etc.)

Link to thelist of bases.
(As of June 30, 2021)

Japan

Europe21 Toyota Material■

1 Kariya Plant■

25 Vanderlande■Handling Europe AB

Industries Holding B.V.

President & CEO Ernesto Domínguez

Mjölby, Sweden
Business activities: European headquarters
for materials handling equipment production
and sales
Establishment: 1946

President & CEO Remo Brunschwiler
Veghel, The Netherlands
Business activities: Provision of logistics
solutions
Establishment: 1949
26 TD Deutsche■

22 Toyota Material Handling■

Manufacturing Sweden AB

Managing Director Kristian Björkman

Mjölby, Sweden
Business activities: Production ofmaterials handling equipment
Establishment: 1946

Klimakompressor GmbH

President Kazushige Murao

Bernsdorf, Germany
Business activities: Production ofcompressors
Establishment: 1998

Kariya-shi, Aichi
Main products: Textile machinery,compressors
Start of operations: 1927
2 Obu Plant■

Obu-shi, Aichi
Main products: Compressor parts
Start of operations: 1944
3 Kyowa Plant■

Obu-shi, Aichi
Main products: Automotive press dies,
production facilities
Start of operations: 1953

27 Uster■
23 Toyota Material Handling■

Manufacturing Italy S.p.A.

Kristian Björkman
Bologna, Italy
Business activities: Production ofmaterials handling equipment
Establishment: 1942

Managing Director

Technologies AG

CEO Thomas Nasiou

Uster, Switzerland
Business activities: Production, sales andafter-sales services of quality measurement
instruments for fiber, yarn and fabric
Establishment: 1875

24 Toyota Material Handling■

Manufacturing France SAS

Managing Director Philippe Mahé
Ancenis, France
Business activities: Production ofmaterials handling equipment
Establishment: 1995

3
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4■
2
■
8■
1
■
7■
5■
9
■
6
■

21 ■
22
■
26
25 ■
■
24
27
■
■
23
■

32 ■
35
■
30 ■
31
■

10
■

34
■
28 ■
29
■

33
■

Asia
28 Toyota Industries Engine■

India Private Limited

Managing Director Yoshimitsu Hayashi
Bangalore, India
Business activities: Production of diesel
enginesEstablishment: 2015

29 Kirloskar Toyota Textile■

Machinery Pvt. Ltd.

74

Toyota Industries Report 2021

30 Toyota Industry (Kunshan)■Co., Ltd.

President Takehiko Oishi

Kunshan, Jiangsu, China
Business activities: Production ofmaterials handling equipment andautomotive parts, etc.
Establishment: 1994
31 TD Automotive Compressor■

Kunshan Co., Ltd.

32 Yantai Shougang TD■

Automotive Compressor
Co., Ltd.

President Yasushi Watanabe
Yantai, Shandong, China
Business activities: Production ofcompressors
Establishment: 2012

33 P.T. TD Automotive■Compressor Indonesia

Managing Director Hisahiro Koketsu

President Akira Fujii

President Masaya Nakamura

Bangalore, India
Business activities: Production, sales andafter-sales services of textile machinery
Establishment: 1995

Kunshan, Jiangsu, China
Business activities: Production ofcompressors
Establishment: 2005

Bekasi, Indonesia
Business activities: Production ofcompressors
Establishment: 2011

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information
Major Bases

4 Nagakusa Plant■

8 Higashiura Plant■

Obu-shi, Aichi
Main products: Vehicles
Start of operations: 1967

Higashiura-cho, Chita-gun, Aichi
Main products: Compressor parts
Start of operations: 2002

5 Takahama Plant■

9 Anjo Plant■

Takahama-shi, Aichi
Main products: Materials handlingequipment, materials handling systems
Start of operations: 1970

Anjo-shi, Aichi
Main products: Electronic equipment,
products for fuel cell vehicles
Start of operations: 2007

10 Aichi Corporation■
President Toshiya Yamagishi

Ageo-shi, Saitama
Business activities: Production, sales
and after-sales services of aerial work
platforms
Establishment: 1962

6 Hekinan Plant■

Hekinan-shi, Aichi
Main products: Engines for automobiles
and for use in industrial fields,
turbochargers
Start of operations: 1982

The Americas

7 Higashichita Plant■

11 Toyota Material Handling■

Handa-shi, Aichi
Main products: Foundry parts,
diesel engines
Start of operations: 2000

North America, Inc.

President & CEO Brett Wood

Columbus, Indiana, U.S.A.
Business activities: U.S. headquarters formaterials handling equipment production
and sales
Establishment: 201012 Toyota Material■

Handling , Inc.

17
15 ■
14 ■
■
11 ■
12
■
18 ■
19
■
16
■

President & CEO Jeff Rufener
Columbus, Indiana, U.S.A.
Business activities: Production and salesof materials handling equipment
Establishment: 2020

13■

13 The Raymond Corporation■
CEO Mike Field

Greene, New York, U.S.A.
Business activities: Production, sales andafter-sales services of materials handlingequipment
Establishment: 1922
20■
34 Tailift Material Handling■

Taiwan Co., Ltd.

President Amy Lin
Taichung, Taiwan
Business activities: Production, sales andafter-sales services of materials handlingequipment
Establishment: 201435 Global Power Co. Ltd.
■

(Tailift)

President Amy Lin
Qingdao, Shandong, China
Business activities: Production, sales andafter-sales services of materials handlingequipment
Establishment: 2000

16 Toyota Industries■

Commercial Finance, Inc.

President ＆ CEO Mark Taggart
Dallas, Texas, U.S.A.
Business activities: Sales financing formaterials handling equipment
Establishment: 201417 Michigan Automotive■Compressor, Inc.

President Hisashi Kusaba
Parma, Michigan, U.S.A.
Business activities: Production ofcompressors
Establishment: 1989

14 Toyota Advanced Logistics■

North America, Inc.

President & CEO Hitoshi Matsuoka

Indianapolis, Indiana, U.S.A.
Business activities: U.S. headquarters forlogistics solutions
Establishment: 2017

15 Bastian Solutions, LLC■
President Aaron Jones

Indianapolis, Indiana, U.S.A.
Business activities: Integration oflogistic systems
Establishment: 1952
18 TD Automotive■Compressor Georgia, LLC

President Hiroto Ikeno

Pendergrass, Georgia, U.S.A.
Business activities: Production ofcompressors
Establishment: 2004
19 Toyota Industries■

Compressor Parts
America, Co.

President Haruyuki Ito
Pendergrass, Georgia, U.S.A.
Business activities: Production ofcompressor parts and electronics products
Establishment: 2012

20 Toyota Material Handling■

Mercosur Indústria e Comércio
de Equipamentos Ltda

President Hiroshi Kuriyama
São Paulo, Brazil
Business activities: Production, sales
and after-sales services of materials
handling equipment
Establishment: 200475

Investor Information(As of March 31, 2021)

Corporate Head Office

Stock Exchange Listings

TOYOTA INDUSTRIES CORPORATION
2-1, Toyoda-cho, Kariya-shi, Aichi, 448-8671, Japan
Telephone: +81-(0)566-22-2511
Facsimile: +81-(0)566-27-5650

Tokyo and Nagoya (Ticker Code: 6201)

Date of Establishment

Independent Accountant

November 18, 1926

Common Stock

PricewaterhouseCoopers Aarata LLC
Otemachi Park Building 1-1-1 Otemachi, Chiyoda-ku, Tokyo,
100-0004, Japan

No par value
Authorized: 1,100,000,000 shares
Issued:325,840,640 shares

Transfer Agent
Special Account Management Institution(including treasury stock)

Share unit:

Number of Shareholders
14,257

Mitsubishi UFJ Trust and Banking Corporation
1-4-5, Marunouchi, Chiyoda-ku, Tokyo, 100-8212, Japan

100 shares

Capital Stock80,462 million yen

Major Shareholders
Number of Shares Held(Thousands)

Percentage of Total Shares in Issue(Except for Treasury Stock) (%)

Toyota Motor Corporation

76,60024.67

DENSO Corporation

29,647

9.55

The Master Trust Bank of Japan, Ltd. (Trust Account)

16,556

5.33

Towa Real Estate Co., Ltd.

16,291

5.25

Toyota Tsusho Corporation

15,294

4.93

Custody Bank of Japan, Ltd. (Trust Account)

10,757

3.46

Nippon Life Insurance Company

6,580

2.12

Aisin Seiki Co., Ltd.

6,578

2.12

Aioi Nissay Dowa Insurance Co., Ltd.

4,903

1.58

Toyota Industries Corporation Employee Ownership Program

3,782

1.22

186,992

60.23

Name

Total

Notes: 1. Toyota Industries Corporation also holds 15,358 thousand shares of treasury stock but is excluded from the above list.
2. Effective on April 1, 2021, Aisin Seiki Co., Ltd. merged Aisin AW Co., Ltd. and changed its company name to AISIN CORPORATION.
3. Shares held for the purpose of trust services of respective financial institutions are as follows:
The Master Trust Bank of Japan, Ltd. (Trust Account)
16,556 (Thousands)
Custody Bank of Japan, Ltd. (Trust Account)
10,757 (Thousands)

Distribution of Shares

1.0%
4.7%
5.4%
Japanese corporate entities
Foreign corporate entities and others

20.1%

48.3%

Japanese financial institutions
Individuals, etc.
Treasury stock

20.5%

76

Toyota Industries Report 2021

Japanese brokerages

2-1, Toyoda-cho, Kariya-shi, Aichi 448-8671, Japan
Telephone: +81-(0)566-22-2511 Facsimile: +81-(0)566-27-5650
https://www.toyota-industries.com/