Promotion of
ESG Initiatives
Further promoting initiatives to sustain growth in the areas ofthe environment, society and governance

Environmental Initiatives........................................... P. 34–45

Relationship with Stakeholders............................... P. 46–57

Corporate Governance............................................... P. 58–75

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Environmental Initiatives

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Environmental Initiatives

Promoting Environmental Management
We have been undertaking activities globally toward realizing our Environmental Vision 2050.

Seventh Environmental Action Plan

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.

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

Toward the realization of our Environmental Vision 2050, we
have formulated a five-year plan, the Seventh Environmental
Action Plan (fiscal 2022 to fiscal 2026), and have beenpromoting activities accordingly.
The seventh plan has defined action policies, specificactions and targets for each of the four action themes
specified in the Global Environmental Commitment,
namely establishing a carbon neutral society; establishinga recycling-based society; reducing environmental risk
and establishing a society in harmony with nature; andpromoting environmental management. In fiscal 2023, we
showed steady progress across the board toward achieving
respective targets for fiscal 2026.
Please visit Toyota Industries’ website for details of its
Seventh Environmental Action Plan.
Link to theaction plan

Strengthening Environmental Management by Utilizing Third-Party Institutes
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,
and the entire Toyota Industries Group works as one team toresolutely undertake activities in accordance with each plan.

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) R educing environmental risk and establishing a society
in harmony with nature
Generate positive influence on biodiversity(4) Promoting environmental management
Enhance consolidated environmental management andpromote enlightenment activities

Environmental Management Structure
We have set up a Company-wide environmental
management system (EMS) with the president at the
top to quickly reflect top management’s decisions on
business operations. On the basis of this environmental
management structure, which is aligned with our business

management structure, we have been reinforcing ourenvironmental governance and promoting a further reductionof environmental impact resulting from product development
and production activities.

n Environmental Audits
Toyota Industries implements annual internal environmental
audits as well as external audits carried out by anindependent third-party institute.
In fiscal 2023, the external review identified no nonconformance issues. The review, however, pointed out somematters that could potentially constitute non-conformance.
We have been making improvements regarding thesematters and sharing details throughout our plants.
Meanwhile, we organized audit teams led by respective
environmental administrative offices to increase audit
efficiencies and conducted an audit mainly concerning
departments that have faced changes involving auditing
items. The focus of our audits was placed on environmental

Environmental Education
Toyota Industries has built environmental education programs
matched to the environment-related knowledge and skills
required for each job category and position. We intend to
upgrade the level of environmental initiatives throughout
Toyota Industries by providing a variety of environmental
education programs, such as grade-based education,
introductory courses for environmental management andenvironmental audits as well as education on environmentallyfriendly products.

President

policy management and on-site environmental management,
and we clarified how environmental activities have beenpromoted in each division.

n Acquisition of ISO Certification

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

TOPIC

Establishing an Environmental Dojo

Kirloskar Toyota Textile Machinery Pvt. Ltd. (KTTM),
a subsidiary manufacturing textile machinery inIndia, has established an in-plant environmental dojo
under the theme, “Five Acts to Save Our Future” toencourage everyone to think about the environment
and act on his or her own. It is used to raise
environmental awareness of not just employees but
also important stakeholders, such as suppliers andcustomers.

Environmental Committee
Internal audit
Responsible internal auditor

Specialized committees
Chief environmental administrator

Product Environment Committee
Dojo opening ceremony

Production Environment Committee

Head Office functions

Introductory courses for environmental management

Divisions
Division-Based Promotion Committees

Environmental Conservation Organization by manufacturing plants

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Environmental Initiatives

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Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Environmental Initiatives

Activities to Raise Employees’ Environmental AwarenessReceiving the Highest Rating in a Survey by CDP*1 on Climate Change

To provide opportunities to raise employees’ environmental
awareness and encourage their voluntary environmental
actions, we have been featuring environment-related articles
in our internal newsletters and posting environmental inhouse newspapers on our intranet.
We have also been promoting awareness-raising
activities to extend our reach from employees to theirfamilies.
In fiscal 2023, as an opportunity for employees to think
about what they can do to protect biodiversity, we solicited
photographs and anecdotes about local wildlife that wereamazing, amusing or made them want to tell others.

Toyota Industries was selected for the highest A List in asurvey conducted by CDP on climate change as a company
making especially outstanding efforts to reduce greenhousegas emissions and mitigate climate change.
Our efforts to counter climate change were highly
recognized through a comprehensive evaluation and haveresulted in the selection for the A List. These efforts include
the establishment of the Company-wide EMS led by thepresident, the development of products with excellent
environmental performance and the reduction of CO2

emissions from production activities.
Going ahead, we will continue to tackle
climate change as one important issue andcontribute to the realization of a sustainable
society through our global environmental
conservation activities.
*1: 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 and greenhouse gas emissions data

Winning JEC Composites Innovation Awards
Giving Awards to Internal Environmental Kaizen (Improvement) Activities
We have an internal award program to recognize excellent
environmental activities undertaken within Toyota Industries.
The best practices are applied throughout the Company toupgrade our overall environmental activities.
Among activities conducted for curbing global warming,
efficiently improving resource productivity, reducing
environmental risk and conserving biodiversity, we selectexcellent projects with uniqueness and originality of the idea,
applicability and effectiveness in mind.
In fiscal 2023, the program received 43 applications
across Toyota Industries. After the initial screening of
documents and a second screening involving on-site
inspections, we selected one Most Outstanding PracticeAward, two Best Practice Awards and two Excellent PracticeAwards.

Secondary screening by on-site inspectors

Winning a Minister of Economy, Trade and Industry Award in the Energy
Conservation Grand Prize
In fiscal 2022, a project by the Anjo Plant in Aichi Prefecture
to neutralize static electricity and consequently relax in-plant
air-conditioning criteria received a Best Practice Award under
our internal award program. The project subsequently won
a Minister of Economy, Trade and Industry Award, which is
the highest level award in the 2022 Energy Conservation
Grand Prize program (Best Practice Category) sponsored by
the Energy Conservation Center, Japan. This award program
recognizes outstanding energy-saving products and energysaving efforts of business operators or business sites.
Conventionally, the Anjo Plant, which manufactureselectronic devices and components for electrified vehicles,
had air-conditioned the entire plant all year to strictly control
humidity and protect products from damage caused by static
electricity. Especially during winter, when the humidity drops,
the plant required a large quantity of steam for humidification,
which pushed up its energy (LNG) consumption for airconditioning and presented an issue in the plant’s efforts
to save energy. In response, the Production Engineering,
Quality Control and Manufacturing departments worked

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Toyota Industries Report 2023

together to change the method of controlling static electricity
from humidifying the entire plant to using static electricity
neutralizers only in applicable processes. The award program
highly recognized the project for its accomplishments,
namely simplified in-plant humidity control and a 40%
reduction in energy used for air-conditioning, as well as for
how the countermeasure was devised and implemented.

Toyota Industries won awards in the Circularity & Recycling
Category of the JEC Composites Innovation Awards program
for the carbon fiber reinforced plastics (CFRP) recycling
technology we developed and the comprehensive CFRP
recycling system we aspire to build. The JEC Group ofFrance, promoting the composite material industry andtechnology development thereof, has hosted the awards
every year since 1998 to recognize the world’s mostinnovative composite material products and technologies.
Toyota Industries received the awards for the first time.

Awards ceremony in Paris, France

Status of Compliance withEnvironmental Laws

Soil and GroundwaterContamination Countermeasures

With an eye to preventing violations of environmentrelated laws, Toyota Industries takes measures against
the recurrence of potentially serious near-accidents that
may result in legal violations and performs environmental
risk inspections at its plants. In fiscal 2023, there was one
case of violation of water quality-related laws at one of ourconsolidated subsidiaries in Japan. We have carried out
appropriate action to counter it as per the instructions of theauthorities and thoroughly implemented measures to prevent
recurrence.

Toyota Industries carries out surveys and purification ofsoil and groundwater contaminated from the past use oftrichloroethylene and other substances of concern. As ameasure to prevent pollution from substances coveredby the Soil Contamination Countermeasures Law as well
as from grease and oils, we conduct periodic checks on
groundwater. We regularly report the survey results to local
government authorities and provide information at local
community meetings.

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 volume, water withdrawal and wastewater
discharge.
We will continue to utilize this third party verificationin making continuous improvements in our environmental
activities and disclose data to our stakeholders in amore transparent manner. Please visit Toyota Industries’
website for the third-party verification statement and ourenvironmental performance data.
Link to the thirdparty verification
statement

Link to theperformancedata

Members of the Production Engineering Dept., Electronics Div.

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Environmental Initiatives

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Environmental Initiatives

Establishing a Carbon Neutral SocietyWith regard to contributing to the prevention of global warming as one of our top-priority issues, we strive to reduce
CO2 emissions from product use and the amount of energy consumed in all activities of our business sites. Throughthese initiatives, we are striving to minimize CO2 emissions throughout our supply chain.

Our Approach

CSR Material Issue

For Toyota Industries, dealing with global warming is not just a “risk.” It also presents “opportunities” in doing businessto both differentiate ourselves by leveraging our technology-based product appeal and conduct eco-conscious
production activities.
Meanwhile, we have set a goal of establishing a zero CO2 emissions society on a global basis in our Environmental
Vision 2050 and have been making efforts in various fields. In terms of product development, our activities are geared
toward enhancing the environmental performance of our products in each of our businesses. These initiatives include
electrifying car air-conditioning compressors and other products as well as increasing engines’ fuel efficiency. In
production activities, promoting thorough energy savings and utilizing renewable energy and hydrogen are the twopillars of our activities. As specific efforts, we have been striving to thoroughly eliminate wasteful use of energy inproduction processes and increase the efficient use of energy. We have also adopted solar and other renewableenergy sources and have been effectively utilizing clean energy, such as hydrogen.

Case Example: Reducing Energy Consumption through Improved Heat
Balance
The Higashichita Plant, a foundry part and engine production
base in Aichi Prefecture, has implemented a project toreduce its energy consumption with a focus on heating
facilities, which were found to consume a large quantity ofenergy in a survey conducted on production facilities.
The plant has previously undertaken various energysaving activities because reducing energy used by its
industrial furnaces is a challenge facing the plant as amanufacturer of engine parts.
In fiscal 2023, the plant launched an initiative based on
the idea that identifying wasteful use of energy while paying
attention to a balance between energy input into furnaces
and net energy used in manufacturing processes might leadto an effective reduction in energy use.
The plant conducted a survey on an aluminum melting
furnace and cast iron heat treatment furnace, two particularly
large consumers of energy. It identified the source forconsiderable energy loss for the aluminum melting furnace tobe heat dissipation from the furnace body and the outlet ofmolten metal. For the cast iron heat treatment furnace, heatdissipation from the furnace body and heating of workpiecetrays were found to be the primary causes. Accordingly, theplant adopted measures to counter each problem.

(Left) Tatsuhiko Sugie
Team leader, Foundry Section 1,
Manufacturing Office, Foundry
Dept., Engine Div.
(Center) Wataru Ichiyanagi
Environment Group, Safety &Health Dept., Engine Div.

Reducing Tray Weight to Reduce Energy Used for Heating(Right) Akira Okubo
SL, Foundry Section 2,
Manufacturing Office,Foundry Dept., Engine Div.

Before improvement

As of March 31, 2023

After improvement

Lighter weight at the same strength38

As a measure against the common issue of heatdissipation from the furnace body, the plant attachedinsulation panels and applied thermal barrier coating to thefurnaces and successfully reduced the heat released fromtheir bodies. For the heat dissipating from the molten metaloutlet of the aluminum melting furnace, a larger and thicker
outlet cover was effective in increasing heat insulation andreducing heat release. As for the heating of workpiece traysof the cast iron heat treatment furnace, the plant modified thetray structure by reducing weight at the same strength andsucceeded in reducing the energy used for heating.
These and other comprehensive measures have resulted
in an annual reduction of CO2 emissions by about 242 tons.

Toyota Industries Report 2023

Case Example: R educing Energy Consumption by Changing the Heat
Control of a Painting Drying Oven
The Takahama Plant, a materials handling equipment
production base in Aichi Prefecture, has been facing an
increase in energy consumption due to expanding production
volume. In particular, the heating burners of a painting drying
oven were using a considerable amount of city gas.
As part of its energy-saving activities, the plant has
already installed curtains at the opening of the oven to
trap heat. However, eliminating the heat loss has caused
the oven’s internal temperature to easily exceed the set
temperature even when the burner output is set to theminimum, leading to excessive use of gas. Because major
upgrading was difficult for this old oven and its burners were
just updated, the plant tried to use its ingenuity and exploredother ways to reduce the amount of gas used by the burners
at a minimum cost.
The drying oven has a main burner to maintain theinternal temperature at a set level and a pilot burner that is
only used when helping to ignite the main burner. Previously,
the main burner had continued to operate even after theAfter improvement

Before improvement

Temperature

TemperatureSet
temperatureSet
temperature
Time

ON
OFF

Time
ON
OFF

internal temperature reached the set level. Instead, theplant decided to continuously use the pilot burner, which
consumes less gas, to shut off the main burner when the set
temperature is reached and reignite the main burner when
the temperature drops. In this way, the plant successfully
reduced its gas consumption while maintaining the desired
temperature.
Through the improvement, the plant was able to reduce
its annual CO2 emissions by about 71 tons.

Shunsuke Sawada

Painting Production
Engineering 2G, Painting
Production Engineering Office,Production Engineering Dept.,
Toyota Materials HandlingJapan
As of March 31, 2023

The project initially started with the task of lowering
the internal temperature using a controller, but it was
not successful. We then changed our way of thinking
and started another task of shutting off the mainburner, which went well. In the future, we will take up
the challenge of switching to clean energy and work
toward achieving zero plant CO2 emissions by 2050.

Main burner
Pilot burner

TOPIC

Creating a Climate Change Response Leaflet for Employees

Toyota Material Handling Manufacturing Sweden AB (TMHMS), a subsidiary manufacturing
materials handling equipment in Sweden, has created a leaflet for employees about reducing
energy use in the workplace. The aim is to communicate to employees easy and simple climatechange measures, such as turning off lights and other equipment, and lay the groundwork for allcompany efforts to reduce energy consumption.

Through the initiative, we clearly identified how muchenergy is lost in which processes and cooperated
with the relevant departments for effective
countermeasures. We will utilize the knowledge
gained through this experience and continue toreduce CO2 emissions further to achieve carbon
neutrality at the plant.

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Environmental Initiatives

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Value Creation

Initiatives for Growth

Promotion of ESG
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Corporate andFinancial Information

Environmental Initiatives

Establishing a Recycling-Based Society
Case Example: Promoting the Introduction of Renewable Energy in the
Toyota Industries Group
Toyota Industries has been introducing renewable energy
Group-wide, while giving consideration to the characteristicsof the countries and regions where our bases are located.
For example, Vanderlande Industries Holding B.V., asubsidiary engaging in the logistic solutions business in the
Netherlands, signed The Climate Pledge in February 2021
and has been promoting various decarbonization strategies.
The pledge aims to counter climate change and reach net
zero CO2 emissions by 2040, 10 years ahead of the 2050
target year of the Paris Agreement.
In fiscal 2023, Vanderlande installed about 3,400 solar
panels on the roof of the warehouse of its head office.
These panels are expected to generate about 1.2 MWh ofelectricity annually. Together with the panels already installed,

the annual power generation of the entire system will beapproximately 2.2 MWh, accounting for about 30% of thehead office’s annual electricity consumption.

Erik-Jan Dik

Jan-Hein De Jong

As of March 31, 2023

As of March 31, 2023

Executive Manager
Real Estate

Project Leader
Facilities

This initiative shows Vanderlande’s commitment toemphasizing sustainability and staying ahead of thetimes. In the future, in addition to the energy-saving
activities conducted to date, we plan to proactively
undertake various initiatives to contribute to a
decarbonized society, such as introducing renewableenergy through the installation of solar panels on theunused rooftop of our buildings.
Rooftop solar panels installed by VanderlandeSupporting the TCFD Recommendations and Disclosing Information Basedon the Recommendations
In December 2019, Toyota Industries declared support
for the TCFD* and its recommendations. Recognizing thatclimate change-related risks and opportunities represent an
important management issue, we have been undertaking
activities as one of our CSR material issues.
In November 2021, we conducted scenario analysis
and disclosed information on “governance,” “strategy,” “riskmanagement” and “metrics and targets,” as recommended
by the TCFD.

Please visit Toyota Industries’ website for details
of information disclosed in accordance with the TCFD
recommendations.
*A task force established by the Financial Stability Board (FSB) in 2015 at the requestof the G20 to explore how companies should disclose climate-related informationand how financial institutions should respond to climate change.

Link to details

To establish a recycling-based society, we have been striving to reduce and recycle waste and minimize the usageof and environmental impact on water resources.

Water Resources
Our Approach

Water is the basis of all life on the earth and is an irreplaceable and valuable resource. Every year, however, we havebeen witnessing the increasingly severe impacts of droughts, floods and other natural disasters resulting from climatechange as well as shortages in drinking water and agricultural water caused by the growth in the world’s population.
Many of the processes of Toyota Industries use water for washing and painting products, and we regard the watersupply crunch caused by climate change and population growth as a significant risk to our business activities.
Accordingly, we have set a goal of minimizing the environmental impact on water resources and have beenmonitoring water input and output in each country and region and promoting the recycling of water and reduction ofwater withdrawal.

Case Example: R educing the Environmental Impact of Treated Water
Toward achieving the goal of minimizing the environmental
impact on water resources, Toyota Industries has been
making related efforts in its production activities, such asdischarging clean water externally after appropriately treating
wastewater from production processes.
At the Nagakusa Plant, a vehicle assembly base in
Aichi Prefecture, the chemical oxygen demand (COD)
concentration, which is an indicator of water pollution, hasremained at a legally acceptable level. As a focused effort
in fiscal 2023, the plant launched an initiative to reduce its
environmental impact by lowering the COD concentrationeven further.
The plant conducted a survey on water quality in eachwastewater treatment process and found that the biologicaltreatment process using microorganisms to reduce COD was
not working effectively. Another survey showed the cause
was sponges which are carriers of microorganisms. These
sponges, which should disperse evenly in wastewater, were
not mixing well with the wastewater, some floating on thesurface and preventing effective treatment.
Before improvement

TOPIC

Implementing an Eco-Commuting Promotion Activity

Yantai Shougang TD Automotive Compressor Co., Ltd. (YST), a subsidiary manufacturing car air-conditioning
compressors in China, held an activity called “Eco-Commuting—Why don’t you join us?” for its employees. It
encouraged participants to commute on foot, bicycles or public transport, depending on the commuting distance,
instead of using cars. About 73% of employees
participated in the activity in fiscal 2022, and thisincreased to 89% in fiscal 2023.
Through this activity, employees reaffirmed
the need to engage in environmental activities
on their own, which has resulted in increased
environmental awareness.

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Toyota Industries Report 2023

CSR Material Issue

After improvement
Wastewater
Carrier

In response, the plant implemented a countermeasure toplace the sponges in a water-filled tank before putting theminto the treatment tank. This made the sponges submerge
and disperse in wastewater and allowed them to treat it very
efficiently.
Through the improvement, the plant successfully reduced
the COD concentration of its discharged wastewater by
about 33%.
We will constantly work to reduce the environmental
impact of our production activities.

Koichiro Morimoto

Power Section No. 3,
Plant Engineering Dept.
As of March 31, 2023

The initiative was carried out as part of our QC circle
activities, and joint efforts of all circle members led
to the reductions of the COD concentration of thetreated wastewater discharged from the Nagakusa
Plant as well as treatment costs. We will continue towork to further reduce our environmental impact andtreatment costs.

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Environmental Initiatives

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Waste

Case Example: R ecycling Waste Plastics from Production Processes

Our Approach

CSR Material Issue

Mass consumption, if continued on the back of the expanding world population and economic growth, will eventuallydeplete natural resources. Toyota Industries believes it is essential to promote 3R (reduce, reuse and recycle) design for
effective resource utilization and the recycling of waste as resources.
We set a goal of minimizing the use of resources in our Environmental Vision 2050. Accordingly, we have been
making various efforts, including extending the life of components as well as reducing their size and weight in thearea 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 by using leading-edge
technologies are the three pillars of our activities.

Toyota Industries has been promoting initiatives to recycle
waste under the theme of “Waste when mixed, resources
when sorted.”
The Kyowa Plant, an on-board battery production
base in Aichi Prefecture, discharges waste consisting ofvarious types of plastics, such as plastic chips and residuesof materials used in products. We promote the recyclingof waste by sorting it into four groups of plastics, namely
polypropylene (PP), polyphenylene ether (PPE), acrylonitrile
butadiene styrene (ABS) and others, and have a recycling
operator recover the first three for repelleting.

TOPIC

Case Example: Reducing the Use of Masking Materials by Improving
Two-Color Painting Process
The Nagakusa Plant, a vehicle assembly base in Aichi
Prefecture, has been working to reduce its use of resources.
At the plant, painting a two-color body of the RAV4 isdone in two steps. The conventional method applied a firstcolor to the lower part of the vehicle, and after masking thepainted part, painted the roof with a second color. In thisorder, large quantities of masking materials were needed tocover the lower part. The plant launched an improvement
activity, based on reducing the use of masking materials by
first painting and masking the roof, which is smaller than thelower part.
The plant verified the change in the order of paintapplication to identify any issue and found that the new order
will change the orientation of the edge, which represents
a level gap between the two painted portions, and cause
the paint to peel off as parts interfere with each other when
Before improvement
Masked area

24 m2

After improvement
Masked area

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Toyota Industries Report 2023

4 m2

opening and closing the doors. The appearance of the edge
itself will also deteriorate. The Design, Quality Assurance,
Manufacturing and other departments worked together fora design change and resolved these issues by moving theedge further inward. As a result, the use of masking materials
was reduced by 74%.
We will continue to make joint efforts, encompassing
design and other upstream departments as well as
manufacturing sites, to reduce our consumption of materials.

(Top) Yusuke Nakagami
Body 1G, Designing Office
No. 1, Vehicle Engineering
Dept., Vehicle Div.
(Bottom) Takashi Ichikawa
Quality staff, Paint & Plastic
Sec., Manufacturing Dept.,
Vehicle Div.
As of March 31, 2023

In this project, the entire plant worked as a team to
respond to a “we wish we could” request from the
Manufacturing Department.
The process of applying two colors of paint, thedemand for which is growing recently, generates
a considerable amount of waste. In response,
the Manufacturing Department teamed up with
the Design Department to overcome the issue bylooking at it from a different angle and succeeded
in increasing operational efficiency and reducing
the amount of waste. We will continue to promote
the reduction of waste through teamwork acrossdepartmental borders.

In fiscal 2023, we promoted recycling even further byexamining and sorting the waste plastics included in the“others” group. After discussing the matter with a recycling
operator, we found that we can sort out otherwise discarded
PP/polyethylene (PE) mix from the group and started
recycling it.
Going forward, we will work to promote the recycling ofwaste further.

Promoting the Recycling of Household Waste

During the Environmental Month held in June 2022, Toyota Material Handling Mercosur Indústriae Comércio de Equipamentos Ltda (TMHM), a subsidiary manufacturing materials handlingequipment in Brazil, conducted “RECICLE,” a project to promote the recycling of waste from
employees’ homes. Recycling has become an issue in the community in which TMHM is locatedbecause it does not have a public recycling system. With the cooperation of a waste treatment
operator, TMHM set up waste bins within its plant to collect household waste from employees,
which is then collected by the operator for recycling. As a result, about 32 kg of household waste
was recycled.
Through such activities, TMHM will work to increase the recycling awareness of employees
and their families and contribute to the resolution of issues in the community.

Reducing Environmental Risk andEstablishing a Society in Harmony with Nature
We endeavor to conserve biodiversity and use natural resources in a sustainable manner through our businessactivities and seek to achieve harmony between these activities and biodiversity. At the same time, we aim tominimize environmental risk by working not to generate substances of concern because of our business activities.

Conservation of Biodiversity: Our Approach

CSR Material Issue

Deforestation is now proceeding in various parts of the world, 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 each region.
In our Environmental Vision 2050, we set a goal of generating a positive impact on biodiversity and have been
conducting various business activities while continuously paying attention to their influence on the natural environment.
We have also formulated the biodiversity policy and have been promoting initiatives accordingly. The policy clearlystipulates that we seek to reduce the impact of our business activities on biodiversity and work with local communities
for the conservation of biodiversity.

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Environmental Initiatives

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Toyota Industries Group’s Activities to Conserve Biodiversity

Creation of “Birdpia,” a Paradise for Birds

To contribute to the conservation of biodiversity in thecommunity, the Toyota Industries Group promotes activities
globally, leveraging the unique characteristics of each plant.

We created “birdpia,” a paradise for birds, within the premises of the Higashichita Plant to attract endangered bird species.

Contributing to Biodiversity within the Plant Premisesn Setting up an Insect Hotel within the Plant
Premises

Toyota Material Handling
Manufacturing Sweden
AB (TMHMS), a subsidiary
manufacturing materials
handling equipment in Sweden,
has created a biodiversity areaon the plant premises and set
up an insect hotel, a man-madehabitat, within the area for
insects and microorganisms.
The aim is to create anenvironment friendly to insects and microorganisms, attract
birds and small animals that feed on them and ultimately
establish a balanced ecosystem.

n Contributing to the Local Ecosystem byDistributing Seeds of Indigenous Plants
Raymond Corporation, a subsidiary manufacturing materials
handling equipment in North America, distributed seeds ofindigenous plants along with an awareness-raising letterto all employees. Through the letter describing a variety of
benefits brought about by plants, Raymond communicatedto its employees that our lives are supported by diverse
ecosystems.

n Holding a Contest on Drawings ofan Endemic Bird

P.T. TD Automotive Compressor Indonesia (TACI), a
production subsidiary in Indonesia, held a drawing contest
for children of its employees on the theme of Rothchild’s
mynah, an endangered and endemic species in Indonesia.
Holding a family-engaging event creates an opportunity for
employees and their families to recognize the importance of
biodiversity.

TOPIC

Certified as an “Excellent Biodiversity
Company” by the Aichi Prefectural
Government

In November 2022, Toyota Industries received“Excellent” certification in the Aichi Biodiversity
Company Certification Program.
The program was established by the Aichi
prefectural government in 2022 to certify companies
engaging in activities that contribute to biodiversity,in particular, activities that reach throughout thecommunity and ensure continuity. Going ahead, we
will continue to undertake activities together with thelocal community to contribute to the conservation of
biodiversity.

Currently, many living organisms are in danger ofdisappearing, and the ecological balance is on the vergeof collapsing. In April 2022, Toyota Industries joined the30by30 Alliance for Biodiversity, which was established by
the Ministry of the Environment prior to the United Nations
Biodiversity Conference (COP15). Toward achieving the goalof generating a positive impact on biodiversity as specified in
our Environmental Vision 2050, we have been leveraging theunique characteristics of our plants and conducting a rangeof activities to contribute to the natural environment.
The Higashichita Plant is located adjacent to Kinuura
Bay, which used to be a nestling place for many little terns.
In recent years, the bird’s population has declined as suitablebreeding places disappear. In response, Toyota Group
companies with plants in the bay area have been working
together to conserve little terns and other endangered bird
species, under the concept of “Restoring Kinuura Bay to its

original state to provide a safe place for birds to build nests.”
A survey by experts revealed that the idle land ownedby the Higashichita Plant is a wetland that can also attract
birds other than little terns, and Toyota Industries has beenpromoting activities for conserving the bird species.

Expanding a Habitat for Birds and Using It as a Venue for Education
To become a plant operating in harmony with nature, thebirdpia in the Higashichita Plant seeks to secure a stableliving environment for birds and achieve habitat separation
between humans and birds. It is used to expand the habitat
for birds and serve as a venue to provide environmental
education for employees and their families to learn aboutbiodiversity. The birdpia is divided into four zones, namely

TOPIC

grassland, woodland, wetland and gravel zones, to provide adiverse environment. An observation shed and walking paths
are also set up to allow people to observe birds and otherliving things without endangering their habitats.
We have confirmed that the birdpia has been visited byabout 50 species of birds and will continue to make efforts tocontribute to expanding the ecosystem in Kinuura Bay.

Cooperation with and Evaluation byExternal Organizations

We held a workshop with experts and students of
the Chita Peninsula Ecological Network Council andexamined ways to utilize the woodland zone. We also
work with student committee members of the Project
Linking Life with One Another* and regularly conduct
surveys to monitor living organisms.
In recognition of our activities, Toyota Industries
has received a “Good Partnership Project” award
under the Cars and Society Partnership Grand Prize
program run by the Automobile Business Associationof Japan.
*A project jointly carried out by Aichi Prefecture, NPOs, companies andstudents with the aim of forming ecological networks by leveraging
corporate green zones of the Chita Peninsula as well as developing youngenvironmental leaders

Yuka Fukagawa

Biodiversity Conservation Group,
Environmental Conservation
Office, Environmental
Management Dept.

Toyota Industries’ biodiversity
conservation activities are alsoavailable on our Instagram
account, “Tsu Na Gu (‘Link’).”As of March 31, 2023

We have conducted activities with employees of theHigashichita Plant to familiarize them with the birdpia,
such as assembling and painting an observation
shed and coloring and setting up little tern decoys.
We will continue to engage in activities to enhance
the birdpia as a site where people and nature canco-exist.

Links to Virtual Tours
Our Biotope at the East of Obu Station and animal
path within the Higashiura Plant can be viewed on
Toyota Industries’ website.

Link to the Biotope
at the East of
Obu Station(in Japanese)

Link to theanimal path(in Japanese)

Aichi Biodiversity
Company Certification
Program logo

44

Toyota Industries Report 2023

45

Relationship with Our Stakeholders

Top Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information

Relationship with Our
Stakeholders

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
Quality
VisionEach and every member of the Toyota Industries Group complies with laws and regulations while thinking
and acting from the perspective of customers at their workplaces and positions to supply appealing
products/services that exceed the expectations of customers around the world, with safe and reliable quality.

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 quickly and implementing measures
to ensure the non-recurrence of the same defect. In
particular, a defect causing considerable inconvenience tocustomers is recorded as a critical quality issue and reported
to the president. At the same time, we have in place asystem 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. Regarding the regulatory violation related
to certification for engines we manufacture for lift trucks for
the Japanese market, we are making concerted efforts to
not only implement the above measures but also establish astronger check system.

nt

me
ge
na y
Ma ualitqTypes of Quality Sought by Toyota Industries
Carrying on the spirit of founder Sakichi Toyoda that “A productshould never be sold unless it has been carefully manufactured
and fully tested in the commercial trial, with completely
Quality levels thatsatisfactory results,” Toyota Industries strongly believes that
customers truly expect
Brand strength
Corporate image
quality is the lifeblood of a company. Quality must also be built
on compliance with laws and regulations, standards, guidelines
Safety
Salesand specifications that have been agreed upon with customers.
Eco-friendlinessService
Under this belief, we have formulated our Quality Vision asDurability
Logistics
Product
qualityEase of use
our philosophy in ensuring quality that forms the basis of ouroperations.
Workmanship
Designquality
Toyota Industries strives to maintain and improve the total
quality of our corporate activities, which encompasses not only
Compliance with laws and regulations, standards, guidelines“product quality” but also “marketing quality” and “management
and specifications that have been agreed upon with customers
quality.” “Product quality” is embodied in the safety, ecoManufacturing capabilities
friendliness, durability, ease of use and workmanship of our
products, while “marketing quality” entails excellent sales and service in addition to these attributes and “management
quality” further enhances our overall corporate image and brand strength in terms of all of these attributes.

Preventing Occurrence and Recurrence of Defects

g
tin
rke y
Ma ualitq

Providing Support to Suppliersing
tur
fac iesnu bilit
Ma apac

Since improving the quality of our products requires
concerted efforts with our suppliers in and outside Japan, weare strengthening joint quality assurance activities with major
suppliers.

Quality Guidelines and Quality Assurance Structure
To achieve the goal of the Quality Vision, we issue
the Quality Guidelines, which identify priority qualityrelated issues to be implemented in each fiscal year,
to all production bases in and outside Japan andengage in quality assurance activities accordingly.
The implementation status of these guidelines isreviewed by top management at the Quality Functional
Meeting chaired by an executive in charge of
quality*1 for identifying additional issues and devisingcountermeasures. Issues raised are followed up at
meetings of the Company-wide Council of Heads of
Quality Assurance Departments chaired by the head of
the Quality Control Department*1.
*1: As of March 31, 2023

Quality Assurance Activities Based on the Quality Guidelines
Checking and identifying issues of Company-wide
quality status and progress in implementing the guidelines

Implementing Companywide guidelines

President

Quality Vision
Quality Roadmap

Quality Functional Meeting
Executive in charge of quality

A

Heads of business divisions

Company-wide Council of Heads of
Quality Assurance Departments

C

P

PDCA*2cycle

Quality Guidelines

D

Quality assurance activities at all bases in and outside Japan
Quality Guideline 1
Quality assurance inproduct development

Quality Guideline 2
Quality assurance inmass 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 that meets customer expectations by capturing market needs
and understanding how our products are actually used by customers.
At Toyota Industries, the development of a new product entails defining specific goals to incorporate quality inevery 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 to proceed to the next stage only when the head of a
responsible business division examines and approves whether the product has 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 for automotive quality management systems, throughout the Group.

> ISO 9001 and IATF 16949 certification: Acquired by 33 out of the 38 production subsidiaries (as of July 2022)
n Risk Assessment for Product Safety

In order to provide products that are safe for customers to use, each business division conducts risk assessment
during a DR to identify all risks.
We are also providing Company-wide specialized risk assessment education to promote the development of
human resources who can assess two factors integral to risk assessment, namely, the likelihood of an occurrence of ahazard and the severity of damage caused by it.
CSR Material Issue

46

Toyota Industries Report 2023

> Rate of performing risk assessment on applicable products (non-consolidated): 100%n Quality Audit

In each annual quality audit, we conduct genchi genbutsu(go and see for yourself) inspections to confirm eachbusiness partner’s quality control status, provide supportand quality education for items that should be reinforced andcultivate a deeper understanding of kaizen (improvement). In
fiscal 2023, we continued to undertake audit activities under
the COVID-19 pandemic while attaching greater emphasison genchi genbutsu inspections and using mobile cameras
as necessary.

n Nurturing and Certifying Internal Auditors at
Suppliers

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

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
human resources who think, learn and act on their own.

n QC Circle Activities

We encourage all employees to participate in quality control(QC) circle activities. We have garnered many awards,
as we presented the results of our activities at QC circle
conventions across Japan. For example, in fiscal 2023 we
received an encouragement award under the QC Circle
Kaoru Ishikawa Award program for two consecutive years(for the ninth time in total). The award is given to QC circles
for their distinctive activities and contribution 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 global QC
circle trainers at each base. Even though the COVID-19
pandemic affected QC circle activities of all bases outside
Japan since fiscal 2021, these trainers have devised
creative solutions to promote and maintain their initiatives.
As for the Global QC Circle Convention held in Japan as avenue for presenting activity
results, we have been holding
a video session since fiscal
2021. Among the Regional QC
Circle Conventions hosted in
respective regions, the one inAwards ceremony at the Regional QC
Europe was held for the first time Circle Convention in Europe (Sweden)in three years in fiscal 2023 to share the accomplishments
made by respective bases.
All employees are striving for kaizen in their day-to-day
operations through creative ideas. With regard to such ideas,
we received three awards in fiscal 2023 in the Creativity
category in the Commendation for Science and Technology
by Japan’s Minister of Education, Culture, Sports, Scienceand Technology. These awards are given to those whohave used ingenuity in an excellent way and contributed totechnology improvement.

n Nurturing Human Resources Who Can Take a
Scientific Approach

As part of our basic education on quality management,
we teach the basics of statistical quality control (SQC)
and machine learning. In order to increase the practicalapplication of machine learning, we have been nurturing corehuman resources through problem solving in the workplace.
We have held the TICO SQC Convention for 39 years
to share best practices of each business division and honecollective skills. In fiscal 2023 as well, this session was held
online in response to COVID-19.

CSR Material Issue

TICO SQC Convention (online streaming)> Rate of eligible employees receiving training to promote
quality education (non-consolidated): 92.3%

47

Relationship with Our Stakeholders

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Relationship with Our
Stakeholders

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 environmentally preferable purchasing, humanresources development, fair trade, disaster prevention activities assuming earthquakes and various other disasters
and more efficient purchasing.

Basic Perspective
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 compliance

We provide fair and equitable opportunities to all potential suppliers. We comprehensively evaluate our suppliers basedon factors such as quality, price, adherence to delivery times, safety, business stability and technology development
capabilities. We also assess whether they fulfill their social responsibilities, including legal compliance, respect forhuman rights and environmental protection activities, as we strive for fair and equitable business transactions.

Co-Existence and Co-Prosperity Based on Mutual Trust
We strive to realize co-existence and co-prosperity with our suppliers based on mutual trust. Every year, we holdprocurement policy meetings and workshops for managers of major suppliers to facilitate mutual understanding andcooperation. In addition, as full-year efforts for major suppliers, we implement quality control through quality audits andthe development of internal auditors and provide programs such as technical skills training, guidance directed towardkaizen at their production sites and safety and health education.
As for changes in the business environment, including rises in various costs, we continually discuss with suppliersto thoroughly understand the difficulties they are facing and seek to achieve sustainable development for both parties.

Environmentally Preferable
Purchasing Guidelines

Toyota Industries

Affiliated companies

Toyota Industries Report 2023

a periodic check on commodity
items of concern, such as conflictminerals, we strive to maintain healthytransactions and reinforce a related
structure throughout the supply chain.
Link to theguidelines

Sustainability Guidelines
for Suppliers

CSR Material Issue> Rate of performing a sustainability check on applicablesuppliers (non-consolidated): 100%

In 2016, we set up a hotline for our suppliers to reportand inquire about possible compliance violations in Toyota
Industries’ procurement activities to ensure early detection
and the prevention of problems.

Link to thedeclaration(in Japanese)n Toward Achieving Carbon Neutrality in Our
Supply Chain
Toyota Industries holds sessions to explain carbon neutrality
to its major suppliers. In fiscal 2023, we described our
initiatives for reducing CO2 emissions and asked for theircooperation in managing their emissions. Jointly with
suppliers, we will continue to step up our efforts towardachieving carbon neutrality throughout our supply chain.

800
600

Business Continuity Management (BCM)

400200(FY) 19

20

21

22

23

Safety and Health Activities for Suppliers

48

We publicly announced our Declaration of Partnership
Building in September 2021 and have been striving to form agood relationship with our suppliers. The declaration clarifies
that we make corporate and focused efforts to realize coexistence and co-prosperity with our entire supply chain,start new forms of collaboration regardless of company sizeand corporate group affiliations, and observe the preferred
trade practices between a parent business operator and its
subcontractors (included in the business promotion criteriaof the Act on the Promotion of Subcontracting Small andMedium-sized Enterprises).

n Hotline for Suppliers

Participants of Subcontracting LawRelated Seminars

0

We visit the sites of our major suppliers in person to conduct
a genchi genbutsu safety and health inspection*3. We also
hold sessions to explain our Occupational Safety and Health
Policies. Based on the analysis of accidents that occurred in

To work together throughout the supply chain to realize
a sustainable society, we distribute the Sustainability
Guidelines for Suppliers, which describe our requirements
for suppliers related to safety, human rights, labor practices,
the environment, compliance and other topics, to suppliers
while thoroughly informing them about the content. In April
2023, we made revisions to the guidelines, such as adding
provisions on cybersecurity. We inspect their compliance withthe guidelines by performing an annual check on existing
suppliers and requesting new suppliers to perform a selfinspection using a checklist and following up on their efforts.
Through these checks, we confirmed that all suppliers
comply with the guidelines in fiscal 2023. Moreover, throughn Declaration of Partnership Building

Human Resources Development to Enhance Procurement Knowledge(Persons)
1,000*3: Canceled due to COVID-19 from fiscal 2021 to fiscal 2023

Reinforcing Relationships with Suppliers

Reducing Environmental Impact through Environmentally
Preferable Purchasing

We proactively provide personnel in charge of procurement at Toyota Industries andaffiliated companies with education to enhance procurement knowledge. In fiscal 2023,
we provided education mainly on Japan’s Subcontracting Law as well as topics related
to sustainability such as human rights and the environment.
We also utilize e-learning to thoroughly inform personnel in charge of procurement
about our response to the Japanese government’s activities to prevent the unjust useof a superior bargaining position as stipulated in antitrust laws as well as initiatives andguidelines aimed at ensuring fair subcontracts.

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.

Sustainability Guidelines for Suppliers

Fair and Equitable Business Transactions Based on an Open Door Policy

We procure parts, raw materials and equipment while using environmental friendliness as
one important assessment criterion when selecting suppliers. The seventh edition of ourEnvironmentally Preferable Purchasing Guidelines contains our Environmental Vision 2050,
including the establishment of a carbon neutral society. Accordingly, we have been strengthening
environmental management so as to promote environmental
protection activities in our entire supply chain. Efforts include
Link to theguidelines
giving consideration to the entire product lifecycle as early as thedevelopment stage.

explosions), industrial accidents and disorders on thepremises of Toyota Industries, we have established the
Safety and Health Council with subcontractors locatedon our premises. When an accident or industrial accident
does occur, we ask them to report it to us and investigate
the cause in accordance with the rules and procedures
stipulated by Toyota Industries. Also, we jointly create acomfortable working environment by sharing informationon accidents and disorder prevention activities of Toyota
Industries.

the previous fiscal year and information on legal revisions, we
promote safety and health activities for the next fiscal year forthe prevention of similar accidents through these sessions.
With a view to seeking zero accidents (fires andIn further promoting BCM, we are making concerted efforts
with suppliers to reduce associated risks by implementing
specific measures. In fiscal 2022, to deal with frequent
natural disasters in recent years, we rebuilt a system toidentify disaster-induced damage to suppliers. Previously,
we had conducted an impact survey on suppliers byconcurrently using multiple systems for various customers. In
place of these systems, we adopted a new, unified system,

which has enabled us to perform the impact survey in a more
efficient and timely manner and contribute to their BCM.
Moreover, in order to recover quickly and maintainproduction, we continued to reinforce our earthquake andflood control measures at each base while at the same timereevaluating an appropriate level of inventories and examining
ways to decentralize suppliers and production bases.

49

Relationship with Our Stakeholders

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Relationship with Our
Stakeholders

Relationship with Our Shareholders and Investors

Relationship with Our Associates

We aim to facilitate an understanding of the Toyota Industries Group and obtain an appropriate company valuation instock markets through information disclosure based on fair disclosure rules as well as proactive dialogue withshareholders and investors.

We undertake initiatives to enable associates to work safely and with peace of mind and to allow diverse humanresources to exercise their potential and play active roles.

n Human Resources Management and Labor Management
Basic Perspective and Implementation Structure
Toyota Industries continually carries out information disclosure based on fair disclosure rules for shareholders andinvestors. 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 investor relations. We also strive toengage in proactive dialogue with shareholders and investors by establishing a dedicated department.

Basic Concept
Toyota Industries undertakes a range of initiatives based on our basic perspective to develop and leverage thecapabilities of associates and the organization to the fullest by promoting the creation of a highly motivated team.

Increasing Work Motivation
Communication with Shareholders and Investors
As in the previous fiscal year, we implemented various safety
protocols for our 144th General Shareholders’ Meeting heldon June 10, 2022, including reducing the number of available
seats, to prevent the spread of COVID-19 and ensure thesafety of our shareholders.
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.

144th General Shareholders’ Meeting

For institutional investors and analysts, we held financial
results briefings by management, while the Investor Relations
Office conducted individual interviews, mainly via telephone
and the Internet. Through these opportunities, we engaged
in dialogue on a range of topics, including the impact of
global inflation and supply chain disruptions on our businessand business results as well as subsequent future outlook;market conditions in each of the Lift Truck Business andLogistics Solutions Business; production and sales status in
our automobile-related businesses; direction of business overthe medium to long term; and our approach to and initiatives

for the environment, social and governance (ESG) issues.
In December 2022, we hosted an information session
at our Toyota L&F Customer Center Tokyo to describe theMaterials Handling Equipment Business including logistics
solutions, a topic of keen interest among institutional
investors. The hybrid session, held in person and via theInternet, was attended by more than 100 securities analysts,
institutional investors, journalists and other parties. We helda dialogue with them about our potential and strategies toachieve business growth over the medium to long term andallowed them to see our systems and equipment.
For individual investors, we held web-based company
information sessions to explain Toyota Industries’ businesses,
characteristics and strengths and answered many questions.
Through such communications with shareholders andinvestors, we successfully promoted a deeper understandingof Toyota Industries’ entire businesses. Opinions andrequests obtained through these communications are
fed back to executives and relevant business divisions asnecessary to reflect them in our future business activities.

Information session on
the Materials Handling Equipment Business

Returning Profits to Shareholders
Toyota Industries regards ensuring shareholder benefits as
one of the most important management policies. In returning
profits to shareholders, we emphasize stable cash dividends.
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

50

Toyota Industries Report 2023

and demand for funds.
For fiscal 2023, Toyota Industries increased annual cash
dividends by ¥20.0 from the previous fiscal year and paid
annual cash dividends per share of ¥190.0 (interim cash
dividend per share of ¥90.0 and year-end cash dividend pershare of ¥100.0).

It is essential to create an open workplace so that individual
associates can fully demonstrate their abilities in their own
ways and find their work rewarding and meaningful.
At Toyota Industries, supervisors and more experienced
associates have been taking the lead in creating a workplaceculture that allows members to freely share opinions andsuggestions. They also work to establish a relationship sothat they can sincerely work to solve difficulties or troubles
faced by members. To this end, we are making Companywide efforts and holding labor-management discussions
throughout the year.

We also conduct an annual Company-wide morale
survey to listen to voices of associates. Survey topics covervarious aspects, including workplace culture, an individual’s
willingness to growand growth achieved
and supervisors’
management ofsubordinates. By doing
so, we clarify issues andrequired measures andmake efforts accordingly.
Interview between a supervisorand subordinate

Nurturing Human Resources and Promoting Active Roles
It is crucial to build a flexible and robust organization that
can adapt to future uncertainties and various changes.
Accordingly, we strive to nurture human resources who
can trigger changes in the surrounding environment andthemselves and back up associates tackling challenges.

n On-the-Job Training (OJT)

We engage in human resources
development in each workplace with
Setting role/theme
a focus on the OJT cycle consistingof three steps: setting a role andtheme for each associate, giving
Evaluation
Givingguidance and providing performance&
guidance
feedback
evaluation and feedback. Specifically,a supervisor and subordinate holddiscussions to determine an aspired role and theme at the
beginning of a fiscal year. After laying down the growth
expectation and target for the subordinate, the supervisor
gives guidance on a daily basis. At semiannual interviews,
the supervisor gives feedback to the subordinate on his or
her strengths and areas of improvement. The cycle leads tofurther growth and a more active role of each subordinate.
Going ahead, we will introduce a 360-degree feedback
system designed to encourage the growth of supervisors.
Through the system, we will provide an opportunity for themto reflect on their actions and facilitate behavioral change.
As additional efforts to support autonomous careerdevelopment, we will establish a system for associates
to submit their aspired growth and role to their respective
workplaces and enhance our internal job posting system thatallows them to apply for a desired job.

n Off-the Job Training (Off-JT)
We provide various training programs that are practicaland useful in the workplace, including induction training for
new associates, training for newly promoted associates
and seminars to gain specialized knowledge or capabilities.
These programs arealso made available toassociates of affiliatedcompanies in Japan.
We also engage
in the developmentof human resources
globally with a focus
on the following three
Training
pillars.
(1) Global leader training(2) People-to-people exchange (temporary overseas
assignment, overseas training and Intra-Company
Transferee (ICT) system to accept associates of Group
companies outside Japan)(3) Training to be held at Group companies outside Japanto cultivate a sense of value shared across the Toyota
Industries Groupn Support for Personal Development

We provide opportunities and venues for personal
development and voluntary study to increase associates’
willingness to expand their knowledge and perspective
and to learn independently. We also provide financial aid tosupport their personal development.

51

Relationship with Our Stakeholders

Top Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information

Relationship with Our
Stakeholdersn Work Styles without Time or Place Constraints
To enable associates to work productively, we are working tocreate systems and an environment for them to work flexibly
without time or place constraints. To offer more diverse work
style options, we have enhanced our telecommuting systemn Supporting Work-Life Balancein addition to establishing a flex time system without corehour requirements, satellite offices and a discretionary work
system.

Supporting Active Roles of Diverse Human Resources
For generating new value by flexibly responding to thechanging business environment and diversifying customer
needs, we aim to create an organization that allows humanresources that are diverse and proactive to exercise theirabilities to the fullest and make accomplishments throughco-creation.
We are promoting initiatives to realize a corporate
culture in which associates accept and respect each other’s
differences, including gender, age, nationality, race, religion,
sexual orientation, gender identity, disabilities, experience,
sense of value or any other invisible difference.

n Empowerment of Female Associates

We aspire to let individual associates take active roles
regardless of gender. Accordingly, we have been undertaking
a range of initiatives from various aspects, such as changing
mindsets, providing career support for female associates andpromoting flexible working practices.
Targets and Major Initiatives for Promoting Active Roles of Female
Associates CSR Material Issue
Target 1

Ratio of female managers: Double the ratio to 2.4% in fiscal 2025
and triple it to 3.6% in fiscal 2031 compared with fiscal 2015 when
the target was defined

Result1.7%, or 1.4 times the fiscal 2015 level (as of March 31, 2023)

Exampleefforts

Awareness-raising seminars for managers; training for careerdevelopment for female associates; formulating and implementing
individual development plans; role model exchange meetings;
pre-maternity leave seminars; installing delivery lockers in-house

Target 2

Ratio of female graduate recruits: 40% in office work positions and
10% in engineering positions

Result57% in office work positions and 8% in engineering positions(among new hires in April 2023)

Exampleefforts

Recruitment events for female students; participating in initiatives of
the Toyota Female Engineer Development Foundation

Target 3

Ratio of male associates taking parental leave: 30% in fiscal 2026

Result

32.5% (fiscal 2023)

Exampleefforts

Encouraging associates and their spouses to participate in
pre-maternity leave seminars; internally communicating our parental
support systems and example support for a work-life balance

In seeking to ensure that female associates engaging in
production operations fully work and take active roles until
an older age, we also hold a work style seminar for female
production associates and a seminar for supervisors on
nurturing female subordinates.
As a result of these efforts, Toyota Industries received
Japan’s “Eruboshi” certification and an “Excellent Company”

award under Aichi Prefecture’s “Female-Friendly Company”
certification program.

n Initiatives for Persons with Disabilities

We respect the idea of people with and without disabilities
working together and sharing life and work values. Under
this basic policy, we continue to employ persons withdisabilities every year. In order to ensure that they receive fair
opportunities for achieving growth and taking active roles
after joining Toyota Industries, we dispatch sign language
interpreters when they receive training, provide tools to
support communication and assign counseling staff.
CSR Material Issue> Ratio of associates with disabilities: 2.57% (nonconsolidated)

Ratio of Associates with Disabilities (NonConsolidated) and Legally Mandated Ratio
(%)
2.6
2.5
2.4
2.3
2.2
2.1
2.0
0
(FY) 19

Ratio of associates with disabilities

20

21
22
23
(As of June 1 of each fiscal year)n Creating an Age-Inclusive Workplace
We provide practical digital skills education for experienced
associates, who have broad work experience and perspectives,to learn the knowledge on digital technologies and know-how
to use them through themed practical work in the workplace.
They cultivate knowledge and skills through education andcontribute to the workplace by actively promoting the use ofdigital technologies after finishing their education.
In order to enable older associates to work and takeactive roles in production operations, we have been creating
better, less physically stressful production lines for them.
Efforts include setting up standards for the handling of heavy
objects and a work environment that makes it easier for
older associates to work, and improvement in processes in
production lines using digital technologies.

Toyota Industries Report 2023

We have been undertaking business outside Japan for many
years and now have 236 overseas bases, of which morethan 200 companies are led by a local president. In addition,some 50,000 associates are engaging in business activities
outside Japan, accounting for about 70% of all associates of
the Toyota Industries Group.

Establishing in-house daycare center; shorter work-hour
Enhancing systems system for childcare; leave system and loan system forto support a work- fertility treatment; return-to-work system to reinstate
life balanceassociates who have left work to provide child or familycare or to accompany their spouse for a job transfer, etc.
Distributing the Handbook for Balancing Work with
Facilitating an
Nursing Care; distributing the Handbook for Balancing
understanding ofWork with Family Care; seminars on balancing work
maintaining a workwith nursing care; providing newsletters on nursing
life balancecare, othersn Efforts for Mid-Career Recruitment

We have been reinforcing mid-career recruitment toincorporate external knowledge. In fiscal 2024, we plan toincrease the ratio of mid-career associates in office workand engineering positions to 30% of all main career track

associates (20% in fiscal 2023). Mid-career associates are
assigned to their desired business divisions or job categories
and after finishing induction training, take active roles in each
workplace.

n Safety and Health
Safety Vision

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

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 top priority
on maintaining safety in all areas andfocuses on mutual courtesy and safety
as well as realizing workplaces where
associates work each day with a sense ofhappiness and pride.

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

n Occupational Safety and Health Management System

In accordance with the concept of an Occupational Safety and Health Management System (OSHMS/ISO 45001), we
have established a required management structure in each plant (or business division) headed by a general safety andhealth manager (senior executive officer or another executive) and have been achieving improvements in safety andhealth activities on an ongoing basis from human, object and administrative standpoints based on risk assessment.
Improvement Flow of Safety and Health Activities
Management Council / CSR Committee
Continuous
improvement

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

Plant Safety and Health Committees(Chaired by the responsible senior executive
officer, etc.) (Held once a month)
Practical digital skills education for experienced associates

52

n Working with Colleagues from Different
Countries

Basic Perspective
Legally mandated ratio

Link to theaction plan(in Japanese)

Training program topractice career interviews

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
mainly focus on enhancing systems to support a work-lifebalance and facilitating an understanding for maintaining awork-life balance.
As a result of these efforts, Toyota Industries received“Platinum Kurumin” certification and won a “Family-Friendly
Company” award.

Link toperformancedata (social)

Subcommittee on
Improvement of Working
Environment(Held twice/year)

Review by

A management
Inspection andWorkplace Safety and Health Committees(Held once a month)

C corrective measures

Occupational Safety
and Health Policies

P

Plans
Execution and

D operation

53

Relationship with Our Stakeholders

Top Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information

Relationship with Our
Stakeholders

Prevention of Accidents and Disorders through Safety and Health Education
Purpose

Major Initiatives

Acquire qualifications(cultivate personal skills)

Licenses; skills seminars; special education; repeatededucation for capability improvement

Raise safety and healthawareness

Education to improve ability to predict hazards; educationto actually experience hazards (safety dojo)

Prepare for roles
associated withpositions/grades

Induction training; training for third-year production
associates; training for newly promoted senior experts andchief experts; training for newly promoted experts; safety
manager education

Prepare for job
Education on emergency measures; education on equipment
categories and business lockout; education for equipment safety inspectors;
characteristics
hands-on safety education using virtual reality (VR)

Creating a Safe Workplace by Preventing Occurrence and Recurrence ofIndustrial Accidents
Frequency Rate of Lost Workday Injuries
risk perception(Non-Consolidated)
and risk-taking
attitude*4. We will 1.60
Manufacturing industry
keep carrying out 1.20
this initiative toprevent accidents 0.80 Manufacturers of transportation machinery and equipment
caused by human
0.40
factors.
Toyota Industries
Good
We will
0.00(FY) 19
20
21
22
23
continue toSource: Survey on Industrial Accidents, Japan’s Ministry
work toward theof Health, Labour and Welfare
developmentof safe workplaces and safety-oriented human resources
based on an approach to always shut down a machine whensomething is wrong and take fundamental measures toremove the root cause.
*4: R isk perception: An ability to recognize a risk as a risk
Risk-taking attitude: Tendency to intentionally accept a risk and act accordingly
even when one perceives the riskn Health
Basic Perspective

54

Toyota Industries Report 2023

Since fiscal 2022, we have been promoting the “KENKO
Challenge 8 (8 Challenges for a Healthier Lifestyle)” initiative
to promote the cultivation of appropriate lifestyle habits indaily lives by defining eight lifestyle
habits and giving each a score. In
fiscal 2023, we took two approaches
to instill the initiative amongassociates and increase their healthliteracy*5, the two pending issues
from fiscal 2022. One approachtargeted individuals, and we provided
health-related information to
Milestone Health Class

Objective

Individuals
Providing information on mental healthPrevention 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) and offer a Milestone Health Class
as part of this education. 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.
In fiscal 2020, we started providing such information as
physical fitness propensity scores and countermeasures,
how physically fit for work, assessment of physical fitness
age and recommended exercises to increase motivation for
promoting physical fitness.

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 operating a return-to-work support programfor persons on long-term leave for the prevention of relapses.
We have successfully achieved positive results through these
activities.
As for activities for early detection, we put particularemphasis on line care by associates’ immediate supervisors.
We have been encouraging them to use check sheets torecognize the sign of a problem with their subordinates earlyand confirm its implementation status through interviews andquestionnaire surveys. The results revealed that, coupledwith an effort to strengthen the collaboration between each
workplace and the departments responsible for healthpromotion, these activities have resulted in an increase in
Improving Mental Health Support Systems

As a task for the medium term, we are promoting health improvement of associates, mainly focusing on the preventionof lifestyle diseases and mental health support activities, to counter risks of health problems associated with aging andgreater stress. To enable associates to work and take active roles over the long term, we provide support toward thecultivation of an autonomous health-oriented culture in which associates care about their own health and take action
voluntarily and willingly.

implemented a new weight
reduction program that uses
a body composition analyzer(BCA), in addition to providing
the Milestone Health Class andhealth guidance to associates
whose body mass index (BMI)
is above 25.0. The program
Weight reduction program using a BCA
has led to reductions in thebody-fat percentage andvisceral fat level as well as behavior change among theparticipating associates. Some participants noted the useof a BCA makes it easier to see a difference (or a positiveeffect) as it visualizes their body shape. We plan to use a
BCA in annual health checkups and health guidance to raiseassociates’ interest in changing themselves and provide
better motivation for their behavior change.
*5: Knowledge, willingness and ability to obtain, understand and utilize health-related
information

Mental Health Support

Early detection/ Preventive
early resolution measures

Since the occurrence of a serious accident in 2019, we havebeen working to eliminate accidents related to poweredmachinery and constantly upgrading our physical andadministrative measures. Specifically, we have incorporated
into our new and existing equipment a mechanism that cuts
off power whenever an operator accesses a machine with its
safety device disabled. We have also rebuilt our equipment
safety assurance system. The system includes a visualizationof which parts of the equipment are shut down, the control
category under which it is operating and safety featurechecks by qualified equipment safety inspectors.
Moreover, to make further efforts toward zero accidents,
we believe that it is important to prevent accidents causedby the unsafe behavior of operators themselves, including
taking a shortcut, omitting a step in a particular work process
or showing disregard for safety. In fiscal 2023, as part ofhuman-related measures, we started undertaking an initiative
to quantitatively assess the tendencies of individuals, namely

Preventing
relapsesIn order to cultivate knowledge, awareness and the skills
necessary to prevent accidents and disorder, Toyota
Industries proactively provides safety and health education,
including education required by law to cultivate relevant
knowledge and skills and to raise safety and healthawareness, in addition to grade-based education andjob-category-based education. Through these efforts, weare promoting the development of human resources andworkplaces that places the highest priority on safety.

encourage behavior change,along with the results of a
KENKO Challenge 8 survey. As
for the other approach covering
the entire Company, we focus
on conveying the meaningof the initiative and providing
information on workplace
programs to improve each of
the eight lifestyle habit items through meetings of the Plant
Safety and Health Committees.
With a declining labor force and aging society, it isessential to maintain the physical fitness of associates.
However, the score for “Exercise” was lower than otherlifestyle habit items defined in the initiative. In response,
we will promote various efforts and initiatives to encourage
associates to exercise during a short break or after work.
To prevent and ameliorate metabolic syndrome, weWorkplaces
Mental health education
Stress check system

Encouraging associates
to be more aware of theirhealth and offering
advice on healthimprovement measures

Internal and external
health-related hotlines

Understanding the causesof stress in the workplaceand improving working
environment

Interviews as part ofhealth checks<Line care>
Disseminatingknowledge on skills torecognize problems

Workplace Check
Results Viewing System

Return-to-work support

cases where a problem is detected early and still in the mild
stage.
Additionally, we have been conducting an annual stresscheck on all associates since fiscal 2017. We feed backthe check results to all participants and workplaces withsuggestions for improvement while setting up an individualinterview with a doctor for those wishing to do so, including
making an individual recommendation to associates foundto have a high level of stress through the internal check, andproviding improvement support as necessary to individual
workplaces.
Major Health Promotion Events in Fiscal 2023
Stop smoking
awareness event

World No Tobacco Day: One-day no smoking (May 31)
No Smoking Days: Half-day no smoking (for 9 days)

Walking events

Held jointly with health insurance association twice a year inspring and fall (2,432 participants)

Early detection

Providing financial aid for various examinations(used by 958 associates)

Major Activity Indicators
Activity indicator
Participants of age-based health education*6
Average score of KENKO Challenge 8*7
Rate of undergoing a stress check
Overall assessment of the stress check
results (National average: 3)*8

FY2021
FY2022
FY2023—1,140 persons 2,576 persons
5.51
5.54
5.58
99%
99%
99%
3.28

3.27

3.27

*6: Temporarily suspended from March 2020 for prevention of COVID-19. In 2021, held
only during the period from July to December.
*7: Average score at which associates are practicing the eight health habits(1. Desirable weight, 2. Breakfast, 3. Snacks, 4. Sleep, 5. Exercise, 6. Alcohol
consumption, 7. No smoking, 8. Stress level) (Scale of 1 to 8)*8: Assessed using the conversion table of raw scores of the Brief Job Stress
Questionnaire (1: High stress; 3: National average; and 5: Low stress on a five-point
scale)

Response to COVID-19
In fiscal 2023, we again provided workplace vaccinations
to all willing associates at Toyota Industries facilities. As
another response, we updated our Infectious Disease
Response Manual as necessary in accordance with theinfection alert level announced by Japan’s national and local
governments, communicated the revisions thoroughly within

Toyota Industries and dealt with the changing situations
appropriately. Based on the experience, we have formulated
the Infectious Disease Basic Business Continuity Plan,
which compiles our responses to all risks anticipated upon
the outbreak of a new variant of COVID-19 or an unknown
infectious disease.

55

Relationship with Our Stakeholders

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Relationship with Our
Stakeholders

Relationship with Our Local Communities
To contribute to the harmonious and sustainable development of the earth and society, we actively undertake social
contribution activities while respecting the culture, traditions and history of each country.

Basic Perspective
Based on the Sustainability Policy and as a global company, Toyota Industries seeks to contribute broadly tosociety through all its corporate activities conducted in each country and region. Simultaneously, we aim to realize
a sustainable society and the growth of local communities with an emphasis on the areas of social welfare, youth
development, environmental protection and community contribution. While providing cooperation and support throughpersonnel, facilities, funds and know-how, we undertake initiatives to promote employees’ participation in social
contribution activities.

n Implementation Structure

We have established the Social Contribution Group within the General Administration Department in the Head Office.
Each plant and Group company of Toyota Industries around the world collaborates with each other and promotessocial contribution activities matched to the local characteristics and needs while cooperating with NPOs andinteracting with local community members.

Enlightenment Activities

Dialogue with Local Communities

We promote a range ofactivities for employees ofToyota Industries and its
Group companies to increase
their interest in social issues
and cultivate a mindset toalways think about what they
can do to address thesePruning and weedingby an employee association
issues. Such activities include
donating one item per one
person to help welfare facilities to hold a charity bazaar;
social welfare and environmental protection activities of
employee associations*9; providing information on volunteer
activities via the intranet; and presenting examples of social
contribution activities of Group companies across the world.
In this way, we provide various opportunities and venues toparticipate in social contribution activities.

We hold local community
meetings for the purpose of
sharing and resolving various
issues in each community.
These meetings areattended by local community
representatives and responsible
persons of Toyota Industries
Local community meetingin the general administration,
environment and other relevant departments. Dependingon the theme of the meeting, representatives from the local
government also join. Participants exchange opinions not
only on our business activities and associated environmental
risks but also on local events and activities for crime/disasterprevention and traffic safety.

Activity Examples of Toyota Industries Group

Japan Paralym Art® Illustrations on the Cover of Internal Newsletters

Social welfare

Since April 2021, we have been using illustrations by artists with disabilities on the coverof our monthly internal newsletters in support of the Paralym Art® initiative promoted by
the Shougaisha Jiritsu Suishin Kikou Association. The initiative aims to promote the social
engagement and financial independence of persons with disabilities through their artwork.
Each month, we ask a different artist to draw an illustration of our products or people working
in various departments. This has facilitated an understanding of our products and helped us
cultivate a corporate culture that accepts diversity.

Internal newslettersusing Paralym Art® illustrations

Germany Job Introduction Event for Students TD Deutsche Klimakompressor GmbH (TDDK)Youth development

TDDK, which manufactures car air-conditioning compressors, invited female students fromnearby schools to its event to introduce jobs mainly in male-dominated fields, such as science,technology, engineering and mathematics. After a plant tour, they received a briefing on jobs
related to metal processing and electronic devices and experienced tasks under the guidance offemale employees serving as role models. TDDK holds a job introduction event about 10 times ayear for students and kindergartners to present their career options in the future.
TDDK has also created an Instagram account to showcase a variety of careers andprofessions.

Female students participating
in a job experience workshop

Worldwide Cleanup Activities

Environmental protection

Toyota Industries and its global Group companies are undertaking
cleanup activities as part of our environmental protection programs. In
May 2022, Toyota Industries conducted Shokki Smile Plogging*10, a fun,smile-filled cleanup event for colleagues and their families. The event
was attended by 409 employees and their families, and they spent a day
cleaning up their community as well as their minds.
Around the world, 34 Toyota Industries Group companies in 11
countries carried out their respective activities with a total of 7,913
participants mainly on Earth Day and World Cleanup Day.

Shokki Smile Plogging

Joining the World Cleanup Day(TMHRO*11)*10: A coined word that combines “plocka up (trash picking in Swedish)” and “jogging,” plogging is a fitness activity started in Sweden in 2016.
*11: Toyota Material Handling Romania s.r.l

India Community Support for a Better Living Environment Toyota Material Handling India Pvt. Ltd. (TMH India)

Community contribution*9: Voluntary organizations formed by employees at each job level

Major Social Contribution Activities of Toyota Industries and Group Companies
Theme

SocialwelfareYouthdevelopment

Environmental
protection

56

Toyota Industries Report 2023

Activities
Events to interact with persons with disabilities (Japan)“Welfare Festival,” farming experience, Walk Rally(orienteering) and other events
Donating and leasing free of charge materials handlingequipment (worldwide)
Christmas donations (worldwide)
Paralym Art® illustrations on the cover of internal
newsletters (Japan) P. 57
Providing monozukuri workshops (Japan)
Holding plant tours and work experience events (worldwide)
Holding mini concerts at elementary schools (Japan)
Job introduction event for students (Germany) P. 57
Providing environmental education program for elementary
school students (Japan)
Donating benches that made effective use of thinned wood
(Japan)Tree-planting activities to curb global warming (worldwide)
Cleanup activities (worldwide) P. 57

Theme

Activities

Community
contribution

Participation in traditional events (Japan, India)
Volunteer activities to give back to local communities (Japan,
U.S.A.)
Repair of welfare facilities, tree pruning, park maintenance, etc.
Cooperating in disaster prevention and fire-fighting activities(Japan, U.S.A., Germany)
Community support for a better living environment(India) P. 57

Other

Holding charity concert (Japan)
Disaster relief and humanitarian support (worldwide)
Blood donation drives (worldwide)

Every year, TMH India, which engages in the sales and servicing of materials handlingequipment, provides support to nearby schools, welfare facilities and other organizations
according to their needs. In fiscal 2023, TMH India provided support amounting to some ¥7.8
million to 10 organizations.
Major support provided:
Installing new toilets and water dispensers equipped with water purifiers for better water and hygiene
control; installing solar power generation systems; donating school desks and chairsn Status of Social Contribution Activities in Fiscal 2023

Children using donated desks and chairs

CSR Material Issue

Total for companies outside Japan

Total for Toyota Industries Corporation

Grand total

12,553 persons from 69 companies
Activity expenses: ¥263,955,000

6,546 persons from 1 company
Activity expenses: ¥603,073,000

28,500 persons from 100 companies

Total for companies in Japan

9,401 persons from 30 companies
Activity expenses: ¥47,370,000¥914,398,000*12*12: On a consolidated basis including Toyota
Industries Corporation and its major
subsidiaries as of February 28, 2023

57

Corporate GovernanceTop Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Corporate GovernanceCorporate Governance Structure
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.

Basic Perspective on Corporate GovernanceToyota Industries regards the most important managerial task is to earn trust broadly from society and enhance
our corporate value on a stable, long-term basis. We aim to do this task based on our Basic Philosophy and byearnestly fulfilling our social responsibilities. Our basic focus is on contributing to the creation of an enriched society
through business 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 have established a structure to quickly and flexibly respond tochanges 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 our initiatives.
(1) We seek to ensure shareholders’ rights and equality.
(2) We seek to promote appropriate collaboration with stakeholders 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 Board of Directors appropriately in order to make decisions in atransparent, fair, quick and resolute manner.
(5) We seek to promote a constructive dialogue with shareholders.

Implementation Structuremonozukuri (manufacturing). Through this supervisory
function of outside directors, we ensure the legality andvalidity of the Board’s decisions as well as the directors’
execution of duties from an objective perspective. Moreover,a variety of issues concerning important management
matters, such as our corporate vision, management policies,
medium-term business strategies and major investments,
as well as crucial projects in each business division, arediscussed by the Management Committee, which is

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 such as 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 andShareholders’ Meetings
Selection/Dismissal

Selection/Dismissal

Reporting

Cooperation

Accounting Auditor

Reporting

Audit & Supervisory Board
Board of Directors

ReportingAccounting
Audit

Selection/Dismissal

Executive Compensation
Committee

Exchange of Opinions
Appointment/
Monitoring

Executive Appointment
Committee

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

Discussion/
ReportingMonitoring
Selection/Dismissal
Cooperation

Direction/
Supervision

CSR

Quality

Environmental

Production

Export Transaction
Controls

Procurement

Safety and HealthTechnologies

Profit Improvement

candidates, we also perform comprehensive evaluations fromthe viewpoint of placing the right persons in the right positions,while ensuring a balance among the financial, accounting
and legal insights, knowledge on our business fields and thediversity of perspectives on corporate management.
Based on these policies, we review proposals, exchange
views and confirm details at the three-member Executive
Appointment Committee, which consists of Toyota Industries’
president and two independent outside directors, and submit
these proposals to the Board of Directors for resolution.

n Experience and Expertise of Directors and Audit & Supervisory Board Members
CEO orequivalent
position ofbusinessenterprise

Materials
handling
equipment

Automobile

Textilemachinery

Tetsuro Toyoda

○

○

○

○

Akira Onishi

○

○

○

○

Koichi Ito○

Shuzo Sumi○

Junichi Handa○

Knowledge of industries

Audit &
supervisoryboard
members

Technology
IT and digitaldevelopment,
technologies
manufacturing○○

Kazunari Kumakura

Akihisa Mizuno○

Masanao Tomozoe○

ESG

Internationality

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○
○

○
○

Legal affairs
and riskmanagement○○

Toru Watanabe

Finance andaccounting○○

Toru Inagawa

Human Resources

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 Boardof Directors
2019 Revised executive management structure and reduced thenumber and rank of executives
2022 Revised the composition of the Board of Directors(independent outside directors accounting for a third or
more of the total number of members)

We carry out comprehensive evaluations from the viewpointof placing the right persons in the right positions. We seeka balance among making sound and quick decisions,managing risk appropriately, monitoring execution ofbusiness operations and covering a specific function orbusiness division of Toyota Industries.
In appointing audit & supervisory board member

Monitoring*2: Committees

1971
2006
2006
2010
2016
2017

n Policies and Procedures for Selection(and Dismissal) of Senior Management andAppointment of Director Candidates

Members of
the Board

Cooperation

Initiatives for Enhancing Corporate GovernanceSelection and Dismissal of Senior Management and Appointment of
Director and Audit & Supervisory Board Member Candidates

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

*1: Functional
Meetings

President

Management Council(Follows up on the execution of business operations)Audit & Supervisory
Board Office

Link tothe report

Moreover, we strive to maintain and improve internal controls
by establishing the Audit Department and conducting
internal audits of Toyota Industries’ business divisions anddepartments as well as our subsidiaries.

composed of directors at the executive vice president level
and above as well as relevant senior executive officers
and other executives, prior to deliberation by the Board of
Directors.
At meetings of the Management Council, directors,
audit & supervisory board members and senior executive
officers convene to report and confirm the monthly statusof business 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
specific matters, such as corporate social responsibility(CSR), the environment and export transaction controls.
These functional meetings and committees discuss
important matters and action themes in respective areas.

○

○

○

○

○

○

○

○

○

○

Reporting

Functional Meetings*1, Committees*2

Audit Dept.
Internal Audit

Senior Executive Officers
Business Divisions/In-House Company/Departments
Subsidiaries/Affiliates

These entities deliberate andfollow up on issues in respective areas.

Appointment of Independent Members of Management
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 governance,

Toyota 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.

(As of June 9, 2023)

58

Toyota Industries Report 2023

59

Corporate GovernanceTop Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information

Corporate Governance

Effectiveness of the Board of Directors and Its Evaluation

Determination of Compensation for Directors and Audit & Supervisory
Board Membersn Matters Related to Policy for Determining
Individual Compensation for Directors

n 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.

n 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, because outside directors are independentof the execution of business operations, only the fixedcompensation is paid to outside directors.

n Method of Determining Individual Compensation• We have established the Executive Compensation
Committee comprising three members, namely Toyota
Industries’ 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
and the results of deliberations made at the Executive
Compensation Committee.

 olicy for Determining Fixed Compensation,nP
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 the consolidated operating profit as the indicator andcalculate the amount of bonuses for each rank basedon the amount of consolidated operating profit for the

60

Toyota Industries Report 2023

previous fiscal year.
•F or the portion linked to medium-term indicators, weevaluate 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.
•W e have selected the said indicators because we havedetermined that they appropriately align with the basic
perspective of our policy for determining individualcompensation for directors.
• In determining the amount of bonuses, we giveconsideration to dividends, employees’ and othercompanies’ bonus levels, past records of bonus
payments and execution of duties and assigned work.
[Ratio]•A s 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.

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 following summarizes the resultsof their evaluation.

n Evaluation

1) The Board is operated efficiently with a clear focus
depending on the agenda and spends sufficient time toenable focused discussion on important business issues.
2) The Board members include outside directors withextensive experience, and the Board proactively asksthem to provide opinions on each item on the agenda forlively and constructive discussion.
3) Appropriate decision-making and management oversightare ensured by reporting and deliberating on importantmatters several times to make sure that these matters
are thoroughly discussed prior to the resolution.

About

40%

Monthly salaries(fixed compensation)

About

60%

Director(Of which, outside
director)

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

Total

Monthlysalaries

Bonuses(¥ million)(fixedcompensation)(Compensation
linked to businessperformance)

No. ofapplicable
executives

308
(45)

243
(45)

65
(—)

9
(4)

91
(27)

91
(27)

—
(—)

4
(2)

400

334

65

13

Total
compensation

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.
Meetings of the Board of Directors and Relevant Committees
Meeting body

No. ofmeetings held
per year

Board of Directors

12

Average attendance rate

1

99%
(Directors and audit &supervisory board members)
100%(All committee members)

1100%(All committee members)

13

100%
(Audit & supervisory board members)

Audit & Supervisory Board Members and Audit & Supervisory Board

Compensation for Directors and Audit & Supervisory Board Members
Executive category1) Amid the changing business environment, the Board’s
agenda should pay greater attention to matters matchedto the demands of the times, such as those related to
management focused on environmental, social andgovernance (ESG) factors.
2) The Board should continue to deepen the discussion on
the status of both Group-wide and respective business
operations, including direction over the medium tolong term.

Executive Compensation
Committee
Executive Appointment
Committee
Audit & Supervisory
Board

Breakdown of Executives’ Compensation (Excluding Outside Directors)
Bonuses(compensation linked tobusiness performance)n Suggestions for Further Improvement of theEffectivenessNotes:
1. The figures include three directors (of whom one outside director) who resigned at
the conclusion of the 144th General Shareholders’ Meeting held on June 10, 2022.
2. Bonuses show the amounts approved by resolution of the Board of Directors
meeting held on May 18, 2023.
3. At the 144th General Shareholders’ Meeting held on June 10, 2022, it wasdetermined that the compensation for directors is to be changed from monthly toannual and the compensation is to be within ¥900 million per year (of which theamount of compensation for outside directors is to be no more than ¥150 million).
4. At the 132nd General Shareholders’ Meeting held on June 23, 2010, it wasdetermined that the compensation for audit & supervisory board members is to bewithin ¥15 million per month.

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 andreceive reports on the execution of duties by directors andother responsible persons. They work to monitor and provide
advice on the management status through on-site audits
at the Head Office, major business sites and subsidiaries,
thereby contributing to the maintenance and improvement ofinternal controls. They also collaborate appropriately with theaccounting auditor and the internal audit department.
Meetings of the Audit & Supervisory Board are held
every month to share information on audits conducted byfull-time members with outside members, to receive reports
on important business statuses from Board members
and responsible persons, and to receive reports from theaccounting auditor regarding how key audit matters havebeen examined and determined.
At these meetings, the members also discuss and makedecisions on important matters, such as audit policies andplans, the audit method used by the accounting auditor andthe appropriateness of their audit results.

n 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.

61

Corporate GovernanceTop Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Corporate Governance

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

Exercise of Voting Rights
While respecting the management policies of individual
investee companies, we determine how we exercise ourvoting rights by checking each item on the agenda fromthe perspectives of medium- to long-term enhancementof corporate value, policy concerning shareholder returns,
corporate governance and social responsibility.

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. Morespecifically, we conduct verification by using both quantitative
information, which is based on a comparison of total
shareholder return and weighted average capital cost as wellas the return on equity (ROE) of each investee company, andqualitative information, such as the transaction status andthe outlook of future business relationships. In fiscal 2023,
we held shares in 35 listed companies, a decline from 46 infiscal 2011.

within 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
2023 were effective, and accordingly, submitted an Internal
Control Report in June 2023. The report was reviewed byindependent auditors and judged fair in their Internal Control
Audit Report.
Internal Control Assessment System (Based on J-SOX)
Internal control activities undertaken by eachdepartment and consolidated subsidiary(Establishment and operation of internal controls)
Detection ofReview of internal
Improvement of deficiencies
controls byinternal controls
Audit Department

Annual financial report
Internal Control
ReportInternal Control
Audit Report

Audit on internal controls by independent auditors

62

Toyota Industries Report 2023

Frequency

Generally twice a year

Chairperson

President

Members

Executive Vice President, full-time audit & supervisoryboard members, general managers of each businessdivision and related senior executive officers/executive
officers

OfficeEnterprise Risk and Compliance Management Office

Main Agenda• Determining the direction of initiatives under the Toyota
Industries Group Sustainability Policy; approving actionplans; evaluating results• CSR materiality; determining and reviewing action
policies and targets• Risk management for the Group

Link toSustainability
PolicyRespect for Human Rights

Since its founding, Toyota Industries has endeavored to make the earth a better place to live and enrich society
based on the Toyoda Precepts (corporate creed). We recognize that in order for us to continuously contribute to theharmonious and sustainable development of the earth and society, it is essential not only to ensure legal compliancebut also respect the human rights of all people involved in our corporate activities. Under this recognition, we havebeen promoting our initiatives to respect human rights in accordance with the United Nations Guiding Principles on
Business and Human Rights.

Formulation of the Human Rights Policy
Toyota Industries has formulated the Toyota Industries Group
Human Rights Policy (“Human Rights Policy”) under the belief
that we should step up our ongoing human rights initiatives.
While giving consideration to the opinions andinformation provided by external experts and other parties,
the Human Rights Policy was formulated after discussions
and approval by the CSR Committee led by the president.
It is positioned as the highest-level policy related to humanrights within the Toyota Industries Group.
Link tothe policy

Sustainability Implementation Structure
Based upon our belief that the realization of the Toyoda
Precepts (corporate creed) and Basic Philosophy makes acontribution to a sustainable society, Toyota Industries has
established the CSR Committee (chairperson: president)
to determine the directions for Group-wide activities in

CSR Committee

Basic Concept

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 fall

These issues are also, as deemed necessary, reported toand deliberated on by the Board of Directors. Each division
and Group company incorporates these decisions into their
specific activities and carries them out.

accordance with the Toyota Industries Group Sustainability
Policy, approve action plans and evaluate the results.
The CSR Committee deliberates and makes decisions
on the Group-wide issues concerning sustainability andrisk, including the CSR material issues (CSR Materiality).

Implementation Structure
Toyota Industries recognizes that the Group’s corporate
activities, from research and development to procurement
and provision of products and services, may directly or
indirectly impact human rights. To respond to various humanrights issues, we have established the Human Rights Task
Team, which is led by the Human Resources Department andconsists of the relevant departments, including the Corporate
Planning, Purchasing and Legal departments. In accordancewith the Human Rights Policy, the team engages in various
activities, such as sharing each department’s initiatives andthe latest social trends related to human rights and creating
action plans.

63Corporate GovernanceTop Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Corporate Governance

Human Rights Due Diligence

Efforts for Correction and Remediation

We conduct human rights due diligence to specify, preventand mitigate negative impacts on human rights caused by
the Toyota Industries Group’s corporate activities.
The Human Rights Task Team has evaluated humanrights issues relevant to the corporate activities of the
Toyota Industries Group, which were identified based on

the handbooks of Japan’s Ministry of Justice and the Japan
Federation of Economic Organizations (Keidanren) as well
as checking items defined by external rating agencies.
Consequently, we have specified two priority humanrights issues, namely immigrant labor and raw material
procurement, and have been undertaking related activities.

n Initiative on Immigrant Labor (Forced Labor of
Non-Japanese Workers)

found that, as of December 31, 2022, 216 companies haveaccepted trainees under the program. The largest numberof trainees was from Vietnam, accounting for 40% of all
trainees.
At our consolidated subsidiaries, we have further
surveyed the fees charged to these Vietnamese trainees.
As a result, we have confirmed that no trainees havebeen charged fees in excess of the upper limit specified in
Vietnam’s domestic law. We have also set up a consultation
hotline for non-Japanese trainees working under the program
by utilizing the Japan Platform for Migrant Workers towards
Responsible and Inclusive Society. Our efforts in the future
will be geared toward reviewing fee charging, which, if done
inappropriately, could lead to forced labor of non-Japanesetrainees.

Amid the growing attention to protecting and respecting thehuman rights of non-Japanese workers, Toyota Industries
regards forced labor of non-Japanese trainees working
under Japan’s Technical Intern Training Program as one of its
priority human rights issues.
External experts have pointed out that there is possibly
a risk of forced labor when accepting trainees from overseas
through local brokers, as these brokers may charge
exorbitant placement fees to trainees, who end up coming toJapan with a huge debt.
Toyota Industries conducted a survey to check trainee
enrollment and appropriate operation of the program at its
consolidated subsidiaries and major suppliers in Japan andn Initiative on Raw Material Procurement(Minerals)
As another initiative to respect human rights, Toyota
Industries has formulated the Policies and Approaches to
Responsible Mineral Sourcing. Under the policies, we havebeen conducting procurement activities excluding minerals
that may involve human rights abuses, such as funding
armed groups, child labor, forced labor and working underpoor conditions.
More specifically, such minerals include conflict minerals(tantalum, tungsten, tin and gold) that may fuel humanrights abuses by armed groups and armed conflicts in the
Democratic Republic of the Congo (DRC) and adjoining
countries as well as cobalt and other minerals that routinely
involve child labor. Under this recognition, we conduct anannual survey on these minerals within Toyota Industries andat applicable suppliers and confirm that there are no humanrights issues in this area. We will continue to work toward
ensuring the appropriate procurement of raw materials.
> Rate of performing an annual survey on conflict minerals
at applicable suppliers (non-consolidated): 100%

Japan to seek advice on compliance-related matters,
including human rights, with a sense of security and without
being exposed to negative consequences.

Education and Awareness-Raising Activities
To remain a company committed to respecting the humanrights of all people involved in our corporate activities,
the relevant departments of Toyota Industries participate
in lectures hosted by the government and human rights
organizations and joint study sessions with other Toyota
Group companies. We also hold training sessions forconsolidated subsidiaries, in which their top management
participates. Our education and awareness-raising activities

target executives and all employees and aim to cultivate acorrect knowledge of human rights and encourage themto put the idea into practice. Along with providing induction
training for new employees, grade-based training and otherconventional programs, we have been making proactive
efforts even during the COVID-19 pandemic, such as
designating a particular week as “Human Rights Week” andutilizing e-learning programs.

Training to Raise Human Rights AwarenessTargetDescription

Aim

Top management &managers of affiliated companies

External human rights awareness training

Cultivate knowledge of and sensitivity tohuman rights as a manager; gain skills to
support awareness-raising activities

Newly promoted managers

Training for newly promoted managers

Newly promoted team leaders

Training for newly promoted team leaders

Training for managers

Cultivate knowledge of andsensitivity to human rights as a leader

External human rights awareness training
All employees

External Human Rights College series of seminars(only for those nominated)

Raise awareness of human rights

Delivery of a special message during
Human Rights Week
Newly joined employees

Induction training for newly joined employees

Gain knowledge of human rights

Dialogue with Stakeholders
Toyota Industries promotes dialogue with various internal andexternal stakeholders and works with its top management
and the relevant departments to reflect such dialogue in its
future corporate activities.

Policies and Approaches to Responsible Mineral Sourcing
Toyota Industries Corporation and its subsidiaries promote the acquisition of materials
with full deliberation and care to avoid the procurement or usage of materials which
are unlawful or which are obtained through unethical or otherwise unacceptable means.
We recognize that the situation surrounding conflict minerals originatingin Covered Countries is a significant social issue in supply chains. We pursue
procurement and usage that are free from conflict minerals originating in Covered
Countries and relating to illegal conduct including human rights infringement.
We also recognize that human rights abuses such as child labor in the procurementof cobalt, etc., are a serious social problem, and we pursue procurement activities that
do not include minerals that are suspected of being involved in such abuses.
To achieve such procurement and usage, we conduct inquiries tracing backthrough our supply chains and confirm if such minerals are used. In addition, we
take appropriate steps to discontinue procurement of materials that can cause social
problems such as human rights violations or financing of armed groups, if suchusage is detected. Based on mutually beneficial relationships, we ask our suppliers
to understand our policies and approaches and to conduct responsible material
procurement.

Toyota Industries operates a compliance hotline (external
helpline) that allows employees of Toyota Industries
Corporation and its consolidated subsidiaries in and outside

Communication Channels

Employees................Labor-management round table meetings,
annual labor-management meetings, hotline
Shareholders
and investors.........Toyota Industries Reports, Toyota Industries’
official website, ESG dialogue
Business partners.....Procurement policy meetings, hotline
Local community......Inviting residents to Toyota Industries’
events, participating in local events, local
community meeting

Link tothe policies

Policies and Approaches to Responsible Mineral Sourcing

64

Toyota Industries Report 2023

65

Corporate GovernanceTop Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Corporate GovernanceCompliance
Efforts for Prevention of Bribery andCorruption

Basic Perspective
We believe that compliance means both adhering to laws and regulations as well as ethics and social norms. As such,it is vital to promote compliance throughout the Toyota Industries Group under the leadership of top management.
To promote compliance, we have established the Compliance Subcommittee (led by an executive responsible forlegal affairs) as a subordinate organization to the CSR Committee (led by the president). Every year, the subcommittee
formulates an action policy that covers the entire Toyota Industries Group and conducts a follow-up check on the
progress of corresponding activities. 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.
In response to the issue of regulatory violation in certain engines for lift trucks related to Japan’s emissions
certification in fiscal 2023, we will thoroughly identify compliance risks, revise our compliance structure and activities
and work for improvements while seeking advice from external experts.
CSR Material Issue> Number of serious compliance violations in the Toyota Industries Group: 1

Formulating the Employee Code of Conduct and Fully Educating andInstilling the CodeToyota Industries has formulated and distributed to executives
and all employees the Toyota Industries Corporation
Employee Code of Conduct, which serves as conduct
guidelines that should be observed by employees. It covers
such topics as compliance (prevention of bribery, corruption
and profit sharing, conformance to antitrust laws andothers), respect for human rights, safety and health as wellas environmental conservation. Accordingly, we have beenworking to instill the Code through group training and othermeans. Consolidated subsidiaries in and outside Japan haveformulated their own Code of Conduct appropriate to theirrespective business lines and corporate cultures and havebeen implementing Company-wide awareness-raising andeducational activities once a year. In April 2023, we held ameeting to raise compliance awareness and communicate
both the revisions to the Code as described in the TOPIC
section below and our efforts to prevent the recurrenceof the regulatory violation related to Japan’s emissions
certification for lift truck engines. In addition, we have created

TOPIC

and disseminated e-learning materials on 48 topics andcompliance mini quizzes on 48 topics (as of March 2023)
in order to cultivate a deeper understanding of complianceamong employees of Toyota Industries and our consolidated
subsidiaries in Japan and to create an environment in which
employees learn about compliance on their own.

> Execution rate of Employee Code of Conduct

enlightenment and educational activities by Toyota
Industries and consolidated subsidiaries in and outside
Japan: 100%n Example Topics of e-Learning Materials

Compliance; Antitrust laws; Prevention of bribery; Humanrights; Various types of harassment; Safety behavior;
Environmental protection; Management of confidential
information; Product liability; Accounting process; Quality;
Import/export controls

Revising the Toyota Industries Corporation Employee Code of Conduct

In fiscal 2022, Toyota Industries formulated the Sustainability Policy and Human Rights Policy to further promote
corporate activities whose values are aligned with those of society. In April 2023, we revised the Toyota Industries
Corporation Employee Code of Conduct for the first time since 2014 to implement thesepolicies.
The purpose of the revisions was to update the content based on the roles expectedof Toyota Industries and turn the Code into an action guideline for every employee amid
the growing call for responding to various issues, including those related to the Sustainable
Development Goals (SDGs).
We have been making efforts to educate and inform
employees about the Code, such as holding Company-wide
meetings and distributing enlightenment cards, so that they
Link to Codecan practice the Code to fulfill their social responsibilities andof Conduct
contribute to the realization of a sustainable society.

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Toyota Industries Report 2023

To prohibit and prevent bribery, in 2014 Toyota Industries
formulated the Global Guidelines for Bribery Prevention(or individual rules in countries high on the Corruption
Perceptions Index in accordance with their respective,
applicable laws) and has been conducting activities tofamiliarize employees with them in each country and region.

TOPIC

Formulating the Toyota Industries
Group Anti-Bribery Policy

In March 2023, we formulated the Toyota Industries
Group Anti-Bribery Policy to clarify our stance bothwithin and outside the Toyota Industries Group. We
have positioned the policy
above our Global Guidelines
for Bribery Prevention andhave been working tocommunicate and thoroughly
implement the policy in eachregion and country.

Efforts for Ensuring Compliancewith Antitrust Laws andCompetition 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 to carryout enlightenment activities at relevant departments forclarifying our relationships with competitors and ensuring fairtransactions with business partners (e.g., the need to holdsincere dialogue with business partners to deal with changes
in the business environment caused by rises in various
costs). Consolidated subsidiaries in and outside Japan
have also been working to educate and raise awarenessof employees for preventing violations of antitrust laws andcompetition laws, such as forming cartels, in accordancewith local laws and regulations.

Link tothe policy

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 with asense of security and without being exposed to negative
consequences. In Japan, in response to the revisions to theWhistleblower Protection Act, which went into effect in June
2022, we have revised our related rules and communicatedthe revisions among employees while stepping up our efforts
to thoroughly protect whistle-blowers and ensure the early

resolution of problems. In fiscal 2023, we received 70 reports
and inquiries from within Toyota Industries and from its
consolidated subsidiaries in Japan on such matters as labor
management, working environment and ethics. After verifying
each report and inquiry, we have taken appropriate action
regarding each case. Our responses have been reviewed andjudged appropriate by external lawyers.
In fiscal 2017, we also set up a hotline for our major
suppliers to report and inquire about possible complianceviolations by Toyota Industries employees. Through these
initiatives, we ensure the early discovery and prevention ofissues and intend to become a “company on which society
places greater trust.”

Compliance Awareness Survey
Toyota Industries periodically conducts an employee
compliance awareness survey to check how complianceactivities have taken root among employees and how
well they know about the Code of Conduct and whistleblower system. By identifying the actual status andadding improvements, we have been working to makeour compliance structure more effective. In the mostrecent awareness survey, we confirmed that the degree ofrecognition of both the Code and whistle-blower system
was more than 95%. To maintain such a high level, we willcontinue to make efforts for further improvement.

67Corporate GovernanceTop Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Corporate GovernanceTax Governance
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 promoteautonomous 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 2023, compliance officers from nine bases in
China attended the Compliance Officer Conference held in
the country. They shared information about the complianceactivities of each company and updates to relevant laws andexchanged views. After the conference, these bases havebeen conducting activities in a mutually coordinated manner.

Basic Perspective
The Toyota Industries Group regards the most important managerial task is to earn trust broadly from society andenhance its corporate value on a stable, long-term basis. We strive to contribute to society and maintain and enhance
corporate value by complying with the applicable tax laws and regulations of each country and region, as well as bypaying the appropriate level of taxes.

Tax Policy
Under the basic perspective described above, Toyota
Industries has formulated the Toyota Industries Group Tax
Policy.
The Toyota Industries Group will educate its employees asnecessary through tax and accounting training and e-learning
programs so that we are able to pay the appropriate level oftaxes and take the proper tax measures in accordance with
the Code of Conduct.
Link tothe policy
Compliance Officer Conference in China

Main Compliance Officers

EuropeThailandToyota Material Handling Europe AB

BT Midland Co., Ltd

Andreas Lundh

Krisaruj Sereecharoensak

United States

Vanderlande Group

Toyota Industries North America, Inc.

Vanderlande Industries Holding B.V.

Kim Parker

Carl Messemaeckers

China
Toyota Industries Management (China) Co., Ltd.

Zhu Lingling

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Toyota Industries Report 2023

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 assets that 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 and enlightenment
activities on an ongoing basis and seek to maintain a stable business foundation.
(3) Providing safe products and services
We provide safe products and services to customers and society by implementing information security measures in our businessactivities, including the development, design and manufacture 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.

69

Corporate GovernanceTop Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Corporate GovernanceRisk Management
Toyota Industries has set up the Information Security
Subcommittee (led by an executive in charge of the IT Digital
Promotion 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 departmentof Toyota Industries.
For consolidated subsidiaries and affiliates around theworld, 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.

Organization for Promoting Compliance and Information Security
under the CSR Committee
CSR Committee
Activity reports

Approval and instruction

Compliance Subcommittee(in charge of compliance)

Information Security Subcommittee(in charge of information security)

Europe, North America
and China
ToyotaIndustries
Corporation

Consolidated
subsidiaries
in Japan

Consolidated
subsidiaries
outside Japan

Regional headquarters

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

Information Security Managementn 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 a day,
7 days a week. We also share threat information with ourconsolidated subsidiaries and affiliates in and outside Japanto swiftly alert each company.
CSR Material Issue> Number of serious incidents
occurred: 0n Providing Education on Information Security
In addition to our ongoing training on targeted attacks via
e-mail and a cybersecurity awareness website, we createda Cybersecurity White Paper to further reinforce our efforts
to raise awareness of information security. The white paper
compiles past incidents that occurred within the Toyota
Industries Group, the current state of our security measuresand tasks ahead. It is also available in English and is
distributed to consolidated subsidiaries and affiliates aroundthe world with the aim to increase awareness throughout theGroup.

n Preventing Leakage of Confidential Information
As an effort to reinforce workplace activities led byinformation security managers and information security
administrators, we have created and distributed theInformation Security Managers/Administrators Guidebook,which describes the roles of each, the risk of damage causedby leakage of confidential information and response details.
In the future, we plan to distribute the guidebook to ourconsolidated subsidiaries around the world.

n Conducting Information Security Audits
In accordance with the All Toyota Security Guidelines(ATSG)*3, we annually inspect the implementation status of
information security at Toyota Industries and our consolidated
subsidiaries and affiliates around the world in order tomaintain and improve the level of information security on acontinuous basis. In performing ATSG-based inspections, we
also check the rationale for implementing certain measures
to upgrade the level of our activities.
*3: S ecurity guidelines of the Toyota Group, which conform to the Cyber Security
Framework of the National Institute of Standards and Technology (NIST CSF) andISO 27000 series of standards for information security management systems

Primary Activity Examples

Activities in fiscal 2023

Cybersecurity awareness website logo

Cybersecurity White Paper

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Toyota Industries Report 2023

• Conducting an emergency security inspection on
consolidated subsidiaries and affiliates in and outside Japan• Formulating a three-year action plan for improving thesecurity level of affiliated companies in Japan and obtaining
their agreement for the implementation• Creating and issuing a Cybersecurity White Paper• Opening a cybersecurity awareness website• Checking the actual security levels of suppliers andrequesting corrective actions• Creating and issuing the Information Security Managers/
Administrators Guidebook• Incorporating security requirements into the quality control
rules for product development

Basic Perspective
Based on the Basic Policies for the Establishment of an Internal Control System in compliance with the Companies
Act, Toyota Industries is working to strengthen regulations and a structure to promote risk management. We regard thefollowing aspects as the basics of risk management and implement 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 the impact on business and society when a risk becomes apparent

Implementation Structure
Business divisions and other departments at the Head Officedevelop and promote annual action policies that integrate
measures to prevent and control risks related to safety,
quality, the environment, personnel, export transactions,disasters and information security. Progress is assessed
and followed up by each functional management entity suchas the CSR Committee and the Environmental Committee.
We created the position of risk supervisor within the CSR
Committee. By doing so, we promote activities to identify
priority risks from among risks concerning Toyota Industries
as a whole and make sure to implement measures at eachfunctional management entity as well as measures to counteremerging risks spanning multiple functions. In fiscal 2023, wenewly added geopolitical risk to our list of priority risks, andrelevant functional management entities are working together
to implement a range of initiatives.
At the same time, functional departments at the Head
Office such as those responsible for safety, quality and theenvironment formulate rules and regulations and create
manuals from a Group-wide perspective, encompassing
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, including the ability to respond to the identified
priority risks, at each business division and consolidated
subsidiary.
We have also formulated the Risk Response Manual,
which defines basic rules for risk management activities
under normal circumstances and for our initial response toan emergency when a risk becomes evident. The aim isto ensure quick reporting to top management, perform an
accurate assessment of the impact on society and businessactivities and minimize damage through appropriate actions.
The content of the manual is reviewed and revised as deemednecessary in response to changes in businesses and thesurrounding environment.

Risk Management Structure

Risk Map
Large

CSR Committee• Deliberate on anddetermine priority risks• Check and follow up on
the status of activities

Eight priority risks
Degree of impact

Implementation Structure

Risk supervisor

Office of the CSR Committee(Enterprise Risk and ComplianceManagement Office)Collaborate

Various functional meetings andcommittees, business divisions
and other departments,
consolidated subsidiaries in andoutside Japan

Small
Low

Frequency of occurrence/Risk level

High

Response to Possible Major Earthquake
We consider the impact of a major earthquake as one of
the most significant risks and have accordingly formulated abusiness continuity plan. Based on the three basic policies of
placing maximum priority on human life, placing top priority on
the recovery of local communities and ensuring the quickest

possible recovery, we are making Company-wide efforts inthree relevant areas, specifically, “precautionary, pre-disastermitigation,” “initial response to be followed immediately after
the disaster” and “restoration of production.”

71Corporate GovernanceTop Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information

Corporate GovernanceToyota Industries’ Activities Related to Intellectual Properties
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,
consisting of representatives from the functional departments
at the Head Office, is responsible for collecting informationfrom plants and other relevant parties and making Companywide decisions based on the information collected.

Disaster Prevention Structure
Disaster Prevention Response Headquarters (Established in Kariya Plant)
Plant Response
Headquarters
Kariya Plant
Obu Plant
Kyowa Plant
Nagakusa Plant &Morioka Works
Takahama Plant
Hekinan Plant
Higashichita Plant
Higashiura Plant
Anjo Plant
Ishihama Plant

Key Facility
e-Lab (information
systems headquarters)
Remote Sites
Tokyo Office
Toyota L&F Customer
Center Tokyo
Toyota L&F Customer
Center Osaka
TMHG Training Center(Handa)Educational
Sites

AffiliatedCompanies

Company
dormitories
Company
resort facilities

Suppliers

Efforts to Cultivate Personnel to Engage in Disaster Prevention Activitiesn Training at Disaster Prevention Response
Headquarters
One important role assigned to the Disaster Prevention
Response Headquarters that oversees Company-wide
disaster response is to collect information on damages
to both inside and outside the company premises, swiftly
make decisions and disseminate these decisions throughout
Toyota Industries. In fiscal 2023, we again conducted training
remotely as in the previous fiscal year to collect damage
information of each plant and report the information to theDisaster Prevention Response Headquarters. At the samen Simultaneous All-Company Disaster
Prevention Training
In fiscal 2023, we extended the duration of our training
and conducted more effective, simultaneous all-Company
disaster prevention training.
The training at the Kariya Plant assumed stormy weather,and participants first evacuated the building to an outdoor
primary evacuation site, and after checking the safety ofn Individual Training at Each Plant
 ower Restoration DrillnP

Based on the procedures to restore power supplies, including
electricity and gas, which are essential in restoring production
activities, each plant conducts genchi genbutsu (go and see
for yourself) training on a periodic basis. Through the training,
we are identifying problems and making improvements to

Drill to use electrified vehicles as part of our emergency power source

time, we conducted a drill on using electrified vehicles (HEVs,
BEVs and FC buses) of each plant as part of our emergency
power source. We will continue to implement measures
to ensure that the headquarters can function under any
circumstances.
the building, went inside
to a secondary evacuationsite. We will continuously
conduct training to ensure
higher safety and security forour colleagues, customers
Drill to evacuate to an indoor secondary
evacuation site, assuming stormy weather
and business partners while
dealing with new issues found through the training.
step up our efforts to ensure quick restoration activities.

n System Restoration Drill

We conduct system restoration drills jointly with Toyota
Industries IT Solutions, Incorporated, a consolidated
subsidiary engaged in the development and operation of
information infrastructures and systems, and work to improve
our readiness for quick restoration.

Promoting Disaster Prevention at Home and Related 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.
In fiscal 2023, we focused on disaster prevention measures
for when we are outside the home and worked to increase
disaster preparedness by creating and distributing material
on how to ensure safety when an earthquake occurs while
we are in a car or using public transportation.

Future Activities
In the face of frequent wind and water-related disasters andearthquakes in recent years, we believe it is important to beprepared to make a smooth initial response and maintain thefunction of the Disaster Prevention Response Headquarters

72

Toyota Industries Report 2023

no matter when or how much we sustain damage from adisaster. Based on this belief, we will continue our ongoing
efforts to increase the effectiveness of our disaster prevention
scheme.

Basic Perspective
One tenet of the Toyoda Precepts, which serves as our corporate creed, states “Always be studious and creative,
striving to stay ahead of the times.” Under this tenet, Toyota Industries proactively makes investments in research anddevelopment, protects and uses the resulting intellectual properties, such as inventions and know-how, and leverages
them in the strategies of each business. In addition, we make sure to acquire rights on intellectual properties both inand outside Japan and seek to prevent infringement of these rights while working to increase our corporate value byholding intellectual properties.

Implementation Structure and the Number of Patent Applications
Toyota Industries’ businesses span various fields fromtextile machinery to materials handling equipment andautomobile-related products. In accordance with businessstrategies tailored to the characteristics of each business, we
comprehensively analyze information on our own and othercompanies’ intellectual properties, covering our position in therespective markets and competitive relationships, and basedon the results, formulate an intellectual property strategy.
At our internal Invention Review Meeting between thetechnical department and IP department of each businessdivision and other occasions, we identify and encourage
inventions that pay attention to certain technological domains.
At the same time, we operate a system to survey risks ofinfringing other companies’ intellectual properties, report
the survey results to a meeting of the Review and ApprovalCommittee for Research and Development held during eachdevelopment phase and have the responsible executives
review and approve each development project. We also makejoint efforts with consolidated subsidiaries in and outside
Japan possessing the development function to acquire
intellectual properties and promote the sharing of information
to avoid risks of infringement, both from the viewpoint of
Toyota Industries Group as a whole.
Under this implementation structure, we filed some 1,000
patent applications in fiscal 2023. As of March 31, 2023,
Toyota Industries holds about 6,000 patents across the world.

Investment in Intellectual Capital toward Electrification and Automation
Toyota Industries has diverse technologies and know-how
cultivated in various businesses and provides a variety ofsolutions to customers. Leveraging this strength, we havepromoted research and development in the electrification
and automation fields, which will help realize a decarbonizedsociety and resolve labor shortages while actively
encouraging inventions in these fields.
Our patents related to electrification, such as those forbatteries, electronics products and electric compressors,

account for more than half the number of patents held by
Toyota Industries around the world (including those underreview) in the past five years (See Figure 1).
Additionally, the ratio of inventions related to automationin the Materials Handling Equipment Business has been
increasing year by year (See Figure 2). Going forward, we will
work to secure competitive superiority through intellectual
properties.

Figure 1. N umber and Ratio of Patents for Electrification-Related
Technologies Held by Toyota Industries

Figure 2. N umber and Ratio of Patent Applications for AutomationRelated Technologies (Japan)(Number)
6,000

56%

4,000

52%

54%

55%

2,000
0

(FY)

18

19
20
21
22
Number of patents held by the entire Toyota Industries
Ratio of patents for electrification-related technologies

54%(Ratio)60%(Number)
200

55%

150

50%

100

45%

50

40%

0

(Ratio)
75%

38%

50%

43%
36%

50%
25%

11%
(FY)

0%

17
18
19
20
21
Number of patent applications made by the entire Toyota Material Handling Japan
Ratio of applications related to automation

External Evaluations of Patents Held by Toyota Industries
Toyota Industries has been proactively applying for the
National Commendation for Invention sponsored by the Japan
Institute of Invention and Innovation and has received higherranking awards, including the Minister of Economy, Tradeand Industry Award. By receiving these awards, we makeour excellent technological capabilities known internally andexternally and increase the “inventive” motivation of employees
who work at the forefront of our development activities.

Recent Award Won by Toyota Industries
Details
2023 Invention Award
Patent No. 5201113
Back pressure control mechanism forscroll-type compressors73Corporate GovernanceTop Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information

Corporate GovernanceDirectors, Audit & Supervisory Board Members, Vice President,
Senior Executive Officers and Executive Officers(As of June 30, 2023)

Directors
Chairman

Tetsuro Toyoda

Audit & Supervisory Board Members
Apr. 1970 Joined Toyota Motor Sales Co., Ltd.
Feb. 1991 Vice President of Toyota Motor Sales, U.S.A.,
Inc.
Jun. 1991 Director of Toyota Industries Corporation
Jun. 1997 Managing Director
Jun. 1999 Senior Managing Director
Jun. 2002 Executive Vice President
Jun. 2005 President
Jun. 2013 Chairman (current)

Vice Chairman

Akira Onishi

Apr. 1981
Jun. 2005
Jun. 2006
Jun. 2008
Jun. 2010
Jun. 2013
Jun. 2023

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

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)

Audit & Supervisory Board
Member(Outside, independent)

President

Koichi Ito

Apr. 1986
Jun. 1998
Jun. 2012
Jun. 2019
Jun. 2023

Akihisa Mizuno

Joined Marubeni Corporation
Joined Toyota Industries Corporation
Managing Officer
Senior Executive Officer
President (current)

Apr. 1978 Joined Chubu Electric Power Co., Inc. (Chubu
Electric Power)
Jun. 2008 Director, Senior Managing Executive Officer andGeneral Manager of Corporate Planning &Strategy Div. of Chubu Electric PowerJun. 2009 Representative Director and Executive Vice
President of Chubu Electric Power
General Manager of Corporate Planning &Strategy Div. and General Manager of AffiliatedBusiness Planning & Development Dept.
Jun. 2010 President & Director of Chubu Electric PowerJun. 2015 Chairman of the Board of Directors of Chubu
Electric PowerJun. 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)

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)

Apr. 1977 Joined Toyota Motor Sales Co., Ltd.
Jun. 2005 Managing Officer of Toyota Motor Corporation(TMC)
Masanao Tomozoe Apr. 2011 Senior Managing Officer of TMC
Apr. 2011 Senior Vice President of Toyota Motor North
America, Inc.
Jun. 2012 President and Representative Director of Toyota
Motor Sales & Marketing Corporation
May 2015 Advisor of Central Japan International Airport
Company, Limited
Jun. 2015 President and CEO of Central Japan International
AirportJun. 2019 Audit & Supervisory Board Member of Toyota
Industries Corporation (current)
Jun. 2019 Advisor of Central Japan International Airport
Jun. 2021 Special Advisor of Central Japan International
Airport (current)
Audit & Supervisory Board
Member(Outside, independent)

Senior Executive Officers
Director(Outside, independent)

Shuzo Sumi

Director

Kazunari
Kumakura

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
Insurance Co., Ltd. (Tokio Marine & Nichido)
Jun. 2005 Senior Managing Director of Tokio Marine &NichidoJun. 2007 President and Chief Executive Officer of Tokio
Marine & Nichido
Jun. 2007 President and Chief Executive Officer of Millea
Holdings, Inc. (now 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

Director(Outside, independent)

Junichi Handa

Apr. 1979 Joined Toa Nenryo Kogyo K.K.
Feb. 2002 Representative Director of Booz Allen and Hamilton(Japan)Apr. 2005 CEO of Management Wisdom Partners, Japan Inc.
Apr. 2005 Project Researcher of Manufacturing Management
Research Center, the University of Tokyo
Jun. 2013 Corporate Officer and Head of HR, Takeda
Pharmaceutical Company Limited
Jun. 2015 Outside Director of Mitsui Sugar Co., Ltd. (now Mitsui
DM Sugar Holdings Co., Ltd.)
Jul. 2015 CEO of Management Wisdom Partners, Japan Inc.
(current)
Apr. 2016 Project professor of the Graduate School of
Economics (Management) and member of the Officeof the Global Leadership Program, the University ofTokyo
Apr. 2022 Lecturer of the Graduate School of Economics, theUniversity of Tokyo
Jun. 2022 Director of Toyota Industries Corporation (current)

Vice Presiden

Senior Executive Officers

Yojiro Mizuno

Masahiro Kawaguchi Hiroshi Matsumoto

Kazunari Masuoka

Toshihiko Shimizu

Brett Wood

Norio Wakabayashi

Hiroaki Matsuda

Sotaro Kumazawa

Ken Suito

Hisashi Ichijo

Hisanori Miyajima

Shinya Mizutani

Keitaro Hara

Hiroya Akatsuka

Yoichiro Yamazaki

Haruhiko Kimata

Hiroshi Kobayashi

Takehiko Oishi

Shigeru Sawaki

Tomoji Tarutani

Hiromichi Asao

Taeko Kojima

Hiroyuki Taniguchi

Toru Suzuki

Takashi Kubooka

Hiroyasu Takagi

Naomori Suzuki

Motoki Takahashi

Apr. 1985 Joined Toyota Motor Corporation (TMC)
Jun. 2016 Managing Officer of Toyota Industries
Corporation
Jun. 2019 Operating Officer
Mar. 2020 Retired from Operating Officer
Apr. 2020 Deputy Chief Officer, Purchasing Group of TMC
Jul. 2020 Chief Officer, Purchasing Group of TMC(current)
Jun. 2023 Director of Toyota Industries (current)

Executive
Officers

74

Toyota Industries Report 2023

75