Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Corporate Governance

Promotion of ESG Initiatives
Further Promoting Initiatives to Sustain
Growth in the Areas of Governance,
Society and the Environment

Corporate GovernanceCorporate Governance Structure — P38–40 Internal Control System — P40

Compliance — P40–41

Information Security — P41–42 Risk Management — P42–43

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.

Corporate Governance Structure

disclosure of information.
More specifically, the following basic policies drive ourinitiatives.
(1) We seek to ensure shareholders’ rights and equality.
(2)	We seek to promote appropriate collaboration withstakeholders other than shareholders (including
customers, business partners, creditors, local
communities and employees).
(3)	We seek to conduct appropriate information disclosureand 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 withshareholders.

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

Implementation Structure
Toyota Industries convenes monthly meetings of the Board

Selection and Dismissal of Senior Management
and Appointment of Director and Audit &Supervisory Board Member Candidates

Shareholders’ Meetings
Selection/Dismissal

Selection/Dismissal

Reporting

Cooperation

Independent Auditors

Accounting
Audit

Executive Compensation
Committee

Selection/Dismissal

Reporting

Audit & Supervisory Board
Board of Directors

ReportingExchange of Opinions

Executive Appointment
Committee

Appointment/Monitoring

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

Management Council

Monitoring
Selection/Dismissal
Cooperation

President

Business Operation Committee(Follows up on the execution of business operations)

Discussion/
ReportingDirection/
Supervision

Reporting
Audit Dept.

(Reports on and confirms execution of business operations)Internal Audit

Functional Meetings*1, Committees*2
Senior Executive Officers

Business Divisions/In-House Company/Departments

Audit & Supervisory
Board Office
Cooperation

Monitoring*1: Functional
Meetings*2: Committees
CSR

Human Resources
Quality

Environmental

Production

Export Transaction
Controls

Procurement

Safety and HealthTechnologies

Profit Improvement

These entities deliberate andfollow up on issues in respective areas.

Subsidiaries/Affiliates(As of June 9, 2020)
Toyota Industries’ Corporate Governance Reports are available at its Website (in Japanese).

38

Toyota Industries Report 2020of Directors to resolve important management matters andmonitor the execution of duties by directors. We appoint
outside directors who have a wealth of experience andknowledge concerning business management. They attend
meetings of the Board of Directors and give opinions
and ask questions as deemed necessary based on theirindividual, wide-ranging experience and insights related
to the management of globally operating companies andmonozukuri (manufacturing). Through this supervisory
function of outside directors, we ensure the legality andvalidity of the Board’s decisions as well as directors’
execution of duties from an objective perspective. The
Management Committee, which is composed of directors at
the executive vice president level and above as well as senior
executive officers and other executives, deliberates on avariety of issues concerning important management matterssuch as our corporate vision, management policies, mediumterm business strategies and major investments.
Toyota Industries has a divisional organization system,with significant authority delegated to each business division.
For especially crucial matters, however, we have establishedthe Business Operation Committee to enable the president
to meet with the heads of each business division regularly
to monitor and follow the status of their business execution.
At meetings of the Management Council, directors, audit &supervisory board members and senior executive officers
convene to report and confirm the monthly status of 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 meetingsand committees discuss important matters and action themes
in respective areas. Moreover, we strive to maintain andimprove internal controls by establishing the Audit Department
and conducting internal audits of Toyota Industries’ businessdivisions and departments as well as our subsidiaries.

Link tothe report.

As our policies concerning selection (and dismissal) of senior
management and appointment of director candidates, we
carry out comprehensive evaluations from the viewpointof placing the right persons in the right positions. We seeka balance between making sound and quick decisions,managing risk appropriately and monitoring execution ofbusiness operations and covering a specific function orbusiness division of Toyota Industries.
In appointing audit & supervisory board member
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 Executive Appointment
Committee, which includes independent outside directors, andsubmit these proposals to the Board of Directors for resolution.

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

Determination of Compensation for Senior
Management and Directors
Compensation for senior management and directors
consists of monthly salaries and bonuses. Our policy is tolink their compensation with the business performance ofToyota Industries, reflecting their duties and performancein compensation. Bonuses, in particular, are determinedbased on consolidated operating profit of each fiscal year
while comprehensively taking into consideration dividends,
employees’ bonus level, trends among other companies,
medium- to long-term business performance and pastrecords of bonus payments.
As procedures to determine compensation, we review
proposals based on this policy, exchange views and confirm
details at the Executive Compensation Committee, which
includes independent outside directors, and submit these
proposals to the Board of Directors for resolution.

Effectiveness of the Board of Directors and Its
Evaluation
Through interviews with outside directors and audit &supervisory board members, Toyota Industries asks themto evaluate the effectiveness of the Board of Directors andcollects their feedback. The results of their evaluation aresummarized below.
(1)	Opportunities are provided to share information andhold discussions about management issues and othermatters.
(2)	Appropriate decision-making and management
oversight are ensured by holding several discussions
on important matters prior to the resolution and byreporting and following up on the progress after the
resolution of these important matters.
(3)	The atmosphere is open, encouraging directors to freely
make comments and engage in lively discussion.
(4)	Meeting materials are simple and clear, andexplanations are right to the point.
As shown above, Toyota Industries’ Board of Directors
has been evaluated as effective. In response to certain
feedback calling for further improvement, we will undertake
improvement efforts on a continuous basis.

Audit & Supervisory Board System
Toyota Industries has four audit & supervisory board
members, two of whom are full-time members and two ofwhom are outside members.
The four members attend meetings of the Board of
Directors and provide their opinions as appropriate. The
full-time members also attend other important meetings toreceive reports on the execution of duties by directors and39Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Corporate Governanceother responsible persons. They also carry out on-site audits
at the Head Office, major business sites and subsidiaries asnecessary and collaborate with independent auditors and the
Audit Department for overall audits.
Meetings of the Audit & Supervisory Board are held every
month to share information on audits conducted by thefull-time members with the outside members and to receive
reports from directors, responsible persons and independent
auditors. At these meetings, the members also discuss andmake decisions on important matters, such as audit policies
and plans, the audit method used by independent auditors
and the appropriateness of their audit results.
Initiatives for Enhancing Corporate Governance1971 Introduced a divisional organization system
2006 Reduced the number of directors (from 30 to 17)
2006 Introduced a managing officer system
2010 Appointed independent members of management
2016 Reduced the number of directors (from 17 to 11)2017	Conducted an evaluation of the effectiveness of the Board of
Directors
2019	Revised executive management structure and reduced thenumber and rank of executives

Internal Control System
In accordance with the Companies Act, in May 2006 Toyota
Industries’ Board of Directors adopted the Basic Policies
for the Establishment of an Internal Control System (Basic
Policies) to ensure compliance, risk management as well as
the effectiveness and efficiency of business operations by
incorporating these policies into each business segment’s
annual policies and day-to-day routine management. The
CSR Committee, at its meeting held in March, assesses the
progress made in implementing the Basic Policies in theyear under review and determines actions for the coming
year, including reviewing the implementation structure andenhancing day-to-day operational management.
Furthermore, based on the Financial Instruments andExchange Law (so-called Japanese Sarbanes-Oxley Act(J-SOX)), we have established and appropriately operated aninternal control system to maintain the reliability of financial
reporting. The system’s status and progress are reviewed by
the Audit Department and audited by independent auditors.
We determine which Toyota Industries Group companies fallwithin the scope of J-SOX based on the degree of impact on
the reliability of financial reporting. We determined that ourinternal controls over financial reporting as of the end of fiscal
2020 were effective, and accordingly, submitted an Internal
Control Report in June 2020. The report was reviewed byInternal Control Assessment System (Based on J-SOX)
Internal control activities undertaken by eachdepartment and consolidated subsidiary(Establishment and operation of internal controls)

Toyota Industries Report 2020

We believe that compliance means both adhering to laws andregulations as well as ethics and social norms. As such, it isvital to promote compliance throughout the Toyota Industries
Group under the leadership of top management.
To promote compliance, we have established theCompliance Subcommittee (led by the head of the
Corporate Headquarters) as a subordinate organization to
the CSR Committee (led by the president). Every year, thesubcommittee formulates an action policy that covers theentire Toyota Industries Group and conducts a follow-up
check on the progress of corresponding activities twice
during that year.

Formulating and Thoroughly Instilling the Code of
Conduct
Toyota Industries has formulated and distributed to
executives and all employees the Toyota Industries
Corporation Employee Code of Conduct, which serves asconduct guidelines that should be observed by employees.
Accordingly, we have been working to instill the Code throughgroup training and other means. Consolidated subsidiaries
in and outside Japan have formulated their own Code of
Conduct appropriate to their respective business lines andcorporate cultures and have been providing Company-wide
education once a year.
Regarding bribery, which could have a significant impact
on management, Toyota Industries has formulated the Global
Guidelines for Bribery Prevention. Particularly, in countries
high on the Corruption Perceptions Index, each company has
developed internal rules in accordance with the applicablelaws in respective countries and been conducting activities
to familiarize employees with them. As for antitrust laws, weoperate a system to conduct a check and review before andafter employees of Toyota Industries contact competitors
and have been cultivating awareness among employees
for not acting in a manner that may possibly constitute a
violation of antitrust laws. Moreover, we have designated aparticular month as “Antitrust Law Compliance Month” since
fiscal 2016 to carry out enlightenment activities at relevant
departments.
In addition, we have created and disseminated e-learningmaterials on 49 topics in order to cultivate a deeper
understanding of compliance among employees of Toyota
Industries Corporation and our consolidated subsidiaries inJapan and to create an environment in which employees
foster compliance consciousness on their own.

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 2020, we held the second Compliance
Officer Meeting in India with compliance officers from four
companies to share information on the Code of Conduct ofeach company, bestpractices of complianceactivities and updates
to relevant laws.
Through these efforts,
they work together toincrease the level ofcompliance throughout
Second Compliance Officer Meeting in India
their business in India.

Activities in the Toyota Industries Group

Basic Perspective

Each consolidated subsidiary of the Toyota Industries Group
has set up a compliance committee (in Japan) and appointed

We recognize that the personal information of customers,
employees and business partners as well as information
concerning our technologies and sales activities are assetsthat need to be protected. Accordingly, with the aim ofsafeguarding our information assets and strengthening their
management, we have formulated the Basic Policies for
Information Security.

Main Compliance Officers

EuropeToyota Material Handling Europe AB

Information Security

Andreas Lundh

Basic Policies for Information Security

United States(1) Legal compliance	We comply with laws and regulations related to information
security while fostering awareness of them among employees.
(2) Maintaining a stable business foundation
	We safeguard and manage information assets appropriately,
carry out information security-related education andenlightenment activities on an ongoing basis and seek tomaintain a stable business foundation.
(3) Providing safe products and services
	We provide safe products and services to customers andsociety by implementing information security measures in ourbusiness activities, including development, design andmanufacture of products and services.
(4) Information security management
	We build a governance structure to enforce and manage
information security and continue to promote and refine thestructure.

Toyota Industries North America, Inc.
Sheena Seger
China
Toyota Industries Management (China) Co., Ltd.
Zhu Lingling
India
Toyota Material Handling India Pvt. Ltd.
Pragya Sharma
Vanderlande Group
Vanderlande Industries Holding B.V.
Carl Messemaeckers

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

Approval and instruction

Example Topics of e-Learning Materials

Internal Control Audit Report

Audit on internal controls by independent auditors

40

Compliance

Basic Perspective and Implementation Structure

system to report and seek consultation on compliancerelated issues. In Japan, North America, Europe and China, inparticular, we operate a compliance hotline (external helpline)that allows employees and other relevant parties to seek
advice from external experts on compliance-related matterswithout being exposed to negative consequences. In fiscal
2020, we received 86 reports and inquiries from within Toyota
Industries and from its consolidated subsidiaries in Japan onsuch matters as labor management, working environment andethics. After verifying each report and inquiry, we have taken
appropriate action regarding each case. Our responses havebeen reviewed and judged appropriate by external lawyers.
In fiscal 2017, we also set up a hotline for our major
business partners to report and inquire about possible
compliance violations by Toyota Industries employees.
Through these initiatives, we ensure the early discovery
and prevention of issues and intend to become a “company
on which society places greater trust.”

Annual financial report

Internal Control Report

Improvement of Detection of Review of internal
controls byinternal controls deficiencies
Audit Department

independent auditors and judged fair in their Internal Control
Audit Report.

Compliance; Antitrust laws; Prevention of bribery; Human rights;
Various types of harassment; Safety behavior; Occupational accidents;
Mental health; Environmental protection; Management of confidential
information; Traffic safety; Product liability; Accounting process

Compliance Subcommittee (in charge of compliance)

Information Security Subcommittee (in charge of information security)

Europe, North America and China

Early Detection and Prevention of Issues via
Compliance Hotline

Toyota Industries Corporation

Consolidated subsidiaries
in Japan

Consolidated subsidiaries
outside Japan

Regional headquarters

Consolidated subsidiaries outside JapanThe Toyota Industries Group has in place a whistle-blower

41

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Corporate Governance

Implementation Structure
Toyota Industries has set up the Information Security
Subcommittee (led by an executive in charge of the General
Administration Department) as a subordinate organization to
the CSR Committee to reduce information security risks.
To thoroughly implement the initiatives adopted by thesubcommittee, we appoint information security managers*1
and information security administrators*2 at each departmentof Toyota Industries.
For consolidated subsidiaries around the world, we
regularly hold meetings of information technology (IT)managers in each region to share information on security
incidents and countermeasures both in and outside the Toyota
Industries Group and to disseminate relevant policies. Throughthese and other measures, we are increasing the levels of
security and security awareness throughout the Group.
*1: Head of each department*2: A person within the department, appointed by the head

Information Security ManagementInformation 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 24hours a day, 7 days a week. Upon the occurrence of anincident, we immediately report it to the president andsenior management and share relevant information within
Toyota Industries. We also share threat information with ourconsolidated subsidiaries in and outside Japan to swiftly alert
each company.
Providing Education on Information Security
We believe that awareness among all executives, employees
and contract employees is crucial in preventing information
security incidents. Based on this belief, we provide training on
targeted attacks via e-mail and after-action education morethan four times a year per person. We also send periodic
reminders internally using incidents that have occurredelsewhere as examples.
Preventing Leakage of Confidential Information
We strive to raise the level of information security by holding
workplace meetings and conducting self-checks regarding
our information security practices. In terms of technologicalmeasures, we implement a multi-layer defense that includes
encrypting PCs, restricting and monitoring the copying of files
on recording media and preventing malware penetration anddata leakage caused by cyberattacks.
Conducting Information Security Audits
In accordance with the All Toyota Security Guidelines(ATSG)*3, we biannually inspect the implementation
status of information security at Toyota Industries and ourconsolidated subsidiaries around the world in order tomaintain and improve the level of information security on acontinuous basis.

42

Toyota Industries Report 2020

Primary Activity Examples

Activities in fiscal 2020
• Enhancing security services for consolidated subsidiaries in Japan• Facilitating tools (measures) to support actions against leakage ofconfidential information• Extending the target group of participants for information leakage
response training• Increasing the frequency of e-mail security training (once a year/
person to four times a year/person)• Conducting information security audits at consolidated subsidiaries
outside Japan• Performing a more stringent check on information devices brought
into the plant premises from outside• Providing information security education to on-site plant workers*3: Security guidelines of the Toyota Group, which conform to the Cyber Security Frameworkof the National Institute of Standards and Technology (NIST CSF) and ISO 27000 seriesof standards for information security management systems

Risk Management

Basic Perspective

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

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

Response to Possible Major Earthquake
We consider the impact of a major earthquake as one of
the most significant risks and have accordingly formulated
a business continuity plan. Based on the three basic
policies of placing maximum priority on human life, placing
top priority on the recovery of local communities andensuring the quickest possible recovery, we are making
Company-wide efforts in three relevant areas, specifically,“precautionary, pre-disaster mitigation,” “initial response to befollowed immediately after the disaster” and “restoration of
production.”

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

Aggregating information within a plantReviewing policies on how to return home

2. Initial Response Training at Plant Response
Headquarters
In fiscal 2020, we continued to focus on practical training
by using predetermined procedures and forms. Each Plant
Response Headquarters planned a drill, created a scenario
and served as a moderator to confirm the actions thatshould be taken by its head (plant manager) and members.
By conducting training repeatedly, we intend to create astructure under which every member understands his or herrole and responds to the situation flexibly.

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

Key Facility
e-Lab (information
systems headquarters)

Remote Sites

Educational Sites

Affiliated Companies

Company dormitories
Company resort
facilities

Suppliers

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

Efforts to Cultivate Personnel to Engage inDisaster Prevention Activities
1. Training at Disaster Prevention Response
Headquarters
As one important role assigned to the Disaster Prevention
Response Headquarters that oversees Company-wide
disaster response, we conduct training in which employees
collect information on damages to both inside and outside thecompany premises, swiftly make decisions and disseminate
these decisions throughout Toyota Industries. In fiscal 2020,
we conducted a drill assuming an earthquake occurring in
the early hours of the morning as an effort to strengthen ourreadiness against earthquakes around the clock.

Analyzing damage information

Confirming initial response actions

3. Individual Training at Each Planta) Power Restoration Drill
Based on the procedures to restore power supplies,
including electricity and gas, which are essential inrestoring production activities, each plant conducts
genchi genbutsu (go and see for yourself) training on aperiodic basis. Through the training, we are identifying
problems and making improvements to step up ourefforts to ensure quick restoration activities.
b) System Restoration Drill
We conduct system restoration drills jointly with Toyota
Industries IT Solutions, Incorporated, a consolidated
subsidiary engaged in development and operation of
information infrastructures and systems, and work to
improve our readiness for quick restoration.
4. Training for Identifying Disaster Damage
We repeatedly conduct drills jointly with our affiliatedcompanies and business partners in order to familiarize
them with the use of IT tools to quickly identify thedamage status during a disaster.

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

43Company Introduction

Strategies and Businesses Promotion of ESG Initiatives
Relationship with Our Stakeholders

Relationship with Our Stakeholders
Relationship with Our Customers ————— P44–45

Relationship with Our Business Partners ———— P46

Relationship with Our Associates ————— P48–52

Relationship with Our Local Communities —— P53–54

Relationship with Our Shareholders and Investors — P47

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

	“A product should never be sold unless it
has been carefully manufactured and fully
tested in the commercial trial, withcompletely satisfactory results.”

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

ent
em
nag
it y
g
Ma lity
ual
q
turin
qua
ufac
ting
Man lity
r ke
Ma
qua

Quality levels that
customers truly
expectProduct quality●Safety●Eco-friendliness●Durability●Ease of use

Designquality●Brand strength●Corporate image●Sales●Service

Manufacturing capabilities

Toyota Industries undertakes product development thatmeets customer expectations by capturing market needs
and understanding how our products are actually used bycustomers.
At Toyota Industries, development of a new productentails defining specific goals to incorporate quality in every
stage from product planning and design to production
preparation, production, sales and after-sales services. We
perform a design review (DR), which allows a product toproceed to the next stage only when a responsible businessToyota Industries Report 2020

	Quality Assurance Activities based on the
Quality Guidelines
Quality forms the basis of our operations. As such, weformulated our Quality Vision, which defines our philosophy inensuring quality.
Quality Vision
Each and every member of the Toyota Industries Groupmakes sure to build in quality with ownership (Jikotei
Kanketsu) at their own workplaces and positions to supply
appealing products/services that exceed the expectations ofcustomers around the world with safe and reliable quality.

To achieve the goal of this vision, we issue the Quality
Guidelines, which identify priority quality-related issues tobe implemented in each fiscal year, to all production basesin and outside Japan and engage in quality assurance
activities accordingly. The implementation status of theseguidelines is reviewed by top management at the Quality
Functional Meeting chaired by the head of the Production
Headquarters*1 for identifying additional issues and devisingcountermeasures. Issues raised are followed up at meetingsof the Company-wide Council of Heads of Quality Assurance
Departments chaired by the head of the Quality Control
Department*1.
*1: As of March 31, 2020

Quality Assurance Activities based on the Quality Guidelines

	“Every one of us should fulfill the roles
assigned to us and deliver our best quality
products to customers.”

44

division head examines and approves whether the producthas reached the target quality level.

●Logistics●Workmanship

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

Implementing
Company-wide
guidelines

Quality Functional Meeting

Quality Vision
Quality roadmap

Company-wide Council of Heads of
Quality Assurance Departments

A

P
PDCA*2cycle

Quality Guidelines

D

C
Quality assurance activities atall bases in and outside Japan

Quality Guideline 1
Quality Guideline 2
Quality assurance in Quality assurance inproduct development
mass production*2: PDCA (Plan, Do, Check, Act)

Corporate Information

Quality Guideline 3
Quality assurance atbusiness partners

Quality Guideline 4
Human resources/
workplace development

	Preventing Occurrence and Recurrence ofDefects
If a defect is found in a product after its launch, the Quality
Assurance Department of the responsible business division
takes the lead in examining and identifying the cause bygoing back to its development, design and production
processes. 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 to prevent the occurrenceof defects in all products we develop and manufacture in the
future. As an example, we provide education to production
bases in and outside Japan with an eye to preventing defects
by improving work procedures and processes.

TO P I C

Toyota Industries’ five QC circles won a gold prize at
the International Convention on QC Circles in 2019,
in which a total of 370 circles participated from 16
countries around the world. As an example, theproject of Kirloskar Toyota Textile Machinery Pvt. Ltd.
(KTTM), a subsidiary manufacturing textile machineryin India, was recognized for its genchi genbutsu
and data-based improvement of the productivityof processing lines, which also resulted in personal
growth of the project members.

Providing Support to Business Partners
Since improving the quality of our products requires
concerted efforts with our business partners in and outside
Japan, we are strengthening joint quality assurance activities
with major business partners.
In each annual quality audit, we determine priority
areas, conduct genchi genbutsu (go and see for yourself)
inspections to confirm the improvement status of thepreviously identified deficiencies and provide quality
education on items that should be reinforced in order tocultivate a deeper understanding of kaizen (improvement).
To foster voluntary quality improvement efforts of business
partners, we have introduced a self-audit system, in whichbusiness partners satisfying our criteria perform in-house
quality audits and autonomously improve their quality
assurance systems. In fiscal 2020, we again provided
education to nurture next-generation quality leaders as partof our ongoing efforts for human resources development at
business partners.
These activities enable our business partners to attain thelevel of quality assurance required and establish a culture tofoster quality assurance on their own.

	Promoting Human Resources andWorkplace Development
Toyota Industries provides systematic quality education to
all employees to help them acquire quality assurance skills
needed in actual operations. We have been soliciting creative
proposals to nurture human resources who think and act on
their own and create a better workplace through all-employee
kaizen activities, while at the same time promoting thedevelopment of human resources who can take a scientificapproach to quality assurance through quality control (QC)
circle activities and by using statistical quality control (SQC)*3
techniques and big data analysis.
To date, we have received 15 awards for employees’
creative ideas in the Creativity category in the Commendationfor Science and Technology by Japan’s Minister of Education,
Culture, Sports, Science and Technology. We have alsopresented the results of our QC circle activities at QC circle
conventions both internally and externally and received
multiple awards for our accomplishments.
Our production bases outside Japan also promote kaizen
efforts and human resources development through QC circle
activities. We help them undertake independent activities

Members receiving a gold prizeat the International Convention on QC Circles

by training QC circle instructors. As a venue for presenting
activity results, we hold the Global QC Circle Convention
every year since 2015 and provide workshop sessions toraise skills.
As for nurturing human resources who can take ascientific approach, we launched a new program to provide
basic education on big data analysis in addition to theexisting SQC education. With a particular focus on practicalapplication, we designed an original curriculum and textbook
while keeping a balance between theory and practice. In thenext five years, we will educate more than 1,000 engineers
and simultaneously nurture core human resources in thisarea. Our ultimate goal is for all our engineers to possess
basic knowledge on big data analysis so that they can solve
problems using this technique.
As described above, to reinforce our foundation for quality
assurance, we are promoting the development of humanresources and an open workplace based on the belief that
manufacturing starts with nurturing excellent personnel.
*3: Using statistical techniques to promote quality control and process improvements

Class providing basic education on big data analysis

45Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

Relationship with Our Business Partners

Relationship with Our Shareholders and Investors

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 for a possible major earthquake and otherdisasters and more efficient purchasing.

	Fair and Equitable Business Transactions
based on an Open Door Policy
We provide fair and equal opportunities to all potential
business partners. We comprehensively evaluate ourbusiness partners based on such factors as quality, price,adherence to delivery times, technological capabilities andmanagement information. We also assess their initiatives forsafety, the environment and compliance as we strive for thetimely and stable procurement of excellent products at lower
costs based on fair business transactions.

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

	Reducing Environmental Impact throughEnvironmentally Preferable Purchasing
We aim to procure parts, raw materials and equipmentfrom business partners that give
sufficient consideration to theenvironment.
In the sixth edition of ourEnvironmentally Preferable
Purchasing Guidelines, we added
the aspirations in 2050 of ourEnvironmental Vision. Accordingly,
we have been strengthening
environmental managementin our entire supply chain andundertaking relevant initiatives
Environmentally Preferable
throughout the product lifecycle.

Purchasing Guidelines

Please visit our Website for detailsof our Environmentally Preferable
Purchasing Guidelines.

Web
Link to the guidelines.

	Promoting Human Resources Development
We proactively provide education to enhance procurement
knowledge both internally and externally. In fiscal 2020,
we again provided training on risk management, including
education on Japan’s Subcontracting Law, response to labor
issues that are closely related to their daily operations and46

Toyota Industries Report 2020

appropriate sale of waste. These seminars were attended
by participants from affiliated companies and Hoeikai, anorganization consisting of our business partners. We also
work with Hoeikai to provide support to strengthen the
management platforms of member companies throughToyota Production System (TPS) activities in manufacturing
and QC circle activities.
Participants of Purchasing-Related Seminars(Persons)

Risk management

Affiliated companies

Hoeikai

Subcontracting Law

Toyota Industries

Affiliated companies

1,200	Basic Perspective
Toyota Industries continually carries out timely, appropriate
and fair information disclosure for shareholders and investors.
In this way, we raise management transparency so that we
obtain an appropriate company valuation in stock markets.
We proactively provide not only information required under
disclosure laws and regulations but also information on ourmanagement policy and business activities. Also, we engage
in various investor relations activities to facilitate productive
dialogue with shareholders and investors.

General Shareholders’ Meeting

1,000
800
600
400
200
0

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

(FY) 16

17

18

19

20

	Realizing Fair Trade throughout the Supply
Chain
As part of efforts to realize fair trade throughout the supply
chain, Japan’s Ministry of Economy, Trade and Industry has
announced an action plan for proper management of molds
for parts. In response, Toyota Industries has set up a moldmanagement project and examined how we can “reducemolds, revise management and establish new systems” asstipulated in the action plan. In fiscal 2020, we laid down
clear rules for mold management and shared them with ourbusiness partners, thereby completing our work concerning
the action plan.

	Business Continuity Plan (BCP) Activities
In further promoting our BCP activities, we are making
concerted efforts with business partners to reduce
associated risks by implementing specific measures. In fiscal
2020, to deal with frequent natural disasters in recent years,
we extended the scope of our IT system-based damage
assessment from earthquakes to other natural disasters. We
will also identify business partners with flood risk based on
hazard maps and take action accordingly.
In the face of the spread of COVID-19, we have also
started implementing measures against infectious diseases inorder to reduce supply risks in our supply chain caused by anexcessive concentration of production at a specific site.

We hold our annual general shareholders’ meeting early
to avoid the date on which many companies hold theirrespective shareholders’ meetings so that more shareholders
can attend. We are further facilitating the exercise of voting
rights of our shareholders by allowing them to exercise suchrights via the Internet and by joining the electronic voting
platform for institutional investors.
We held our 141st General Shareholders’ Meeting on
June 11, 2019, in which 483 shareholders participated.
Following the general shareholders’ meeting, we invited
our shareholders for a tour of a plant that manufactures ourmainstay lift trucks and a tour of the Toyota Commemorative
Museum of Industry and Technology established as a joint
project of the Toyota Group to foster a better understandingof our business activities.

Investor Relations Activities
At the financial results briefing, we mainly explained our
newly formulated Vision 2030 and our recent focus on the
Logistics Solutions Business and electrification efforts. In
addition to accepting individual interviews with analysts andothers, we hosted an information session for our electriccompressor business. The session included a tour of a plantas an opportunity to promote a deeper understanding of ourstrengths in the development and production fields.
As for institutional investors outside Japan, we visit major
investors to explain our management policies and growthstrategies. We also participate in conferences hosted inJapan by securities companies and hold individual meetings.
Our Website provides our corporate history, overviews ofeach business as well as product information and initiatives
to develop technologies for the future mainly for individual
investors.
Opinions and requests we collect through various meansof communications with shareholders and investors are fed
back to executives and relevant business divisions via theBoard of Directors and various committees to reflect them inour future business activities.

Major Investor Relations Activities
For institutional investors and securities analysts in Japan•Quarterly financial results briefings •Individual interviews/visits•Small meetings •Teleconferencing •Business information sessions•Facility tours •Issuing/delivering Toyota Industries Reports

For institutional investors outside Japan•Individual interviews/visits •Teleconferencing•Participation in conferences hosted by securities companies•Issuing/delivering Toyota Industries Reports

For individual shareholders and investors•Company-hosted plant tours•Issuing/delivering notice of general shareholders’ meeting•Issuing/delivering business reports

Information session for our electric compressor business (December 2019)

Returning Profits to Shareholders
Toyota Industries regards ensuring shareholder benefits as
one of the most important management policies.
Accordingly, we strive to continue paying dividends atthe consolidated dividend payout ratio of roughly 30% andmeet the expectations of shareholders upon comprehensively
taking into consideration such factors as business results anddemand for funds.
For fiscal 2020, Toyota Industries increased annual cash
dividends by ¥5.0 over the previous fiscal year and paid
annual cash dividends per share of ¥160.0 (interim cash
dividend per share of ¥80.0 and year-end cash dividend
per share of ¥80.0). Given the slowing economy due to the
spread of COVID-19, we made sure to pay the year-end
cash dividend during May 2020 on the basis of the resolutionof the Board of Directors instead of basing our decision on
the resolution of the General Shareholders’ Meetings as we
usually do.

47Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

Notional Image of Activities to Eliminate Heat Strokes
Instill andmaintain
Introduce heatrisk assessment

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

Raise
awareness	Building a Safety-Oriented Culture That
Aims for Zero Industrial Accidents
In accordance with our fundamental policy of “fostering safe,
healthy and pleasant workplaces,” Toyota Industries strives
to prevent industrial accidents and occupational disorders
as well as realize better work environments by making
equipment more immune to accidents or disorders as early
as in their design stage.
In fiscal 2020, we continued to promote primarily safety
and health measures from human, object and administrative
standpoints based on risk assessment.
The analysis results of past accidents and interviews
with plant personnel revealed that many operators lacked
sufficient awareness of hazard sources and conditions. Asan effort to increase their individual consciousness for latenthazards in the workplace, we added hazard-related mattersto which they should pay attention into their routinely used
workplace reports of industrial accidents and potentiallyserious near-accidents as well as reports of risk prediction
activities.
With the aim of identifying all risks associated withancillary facilities and logistics during production preparations,
we conducted interviews with each workplace to checkissues they have encountered in conducting risk assessment.
Based on the results, we created and distributed manuals
and guidelines matched to actual operations to make surethat risks are identified and reduced.

for operators to use. As a specific effort, we will design acircuit configuration that completely shuts down a machineby cutting off its power when an operator accesses themachine while disabling its safety device to extract a productin production processes. This circuit configuration will beincorporated in new equipment we will install in the future. We
are also retrofitting a power shut-down feature to our existing
equipment. Until we complete the modification, we willprotect the safety of operators through periodic equipment
checkups.
In the wake of the accident, we will instill the safety first
approach firmly in all associates in seeking to establish asafety-oriented culture that aims for zero industrial accidents
within the Toyota Industries Group.
Frequency Rate of Lost Workday Injuries(%)
1.60
Manufacturing industry

1.20

0.80

Manufacturers of transportation
machinery and equipment

0.40
Toyota Industries
Good

0.00
(FY) 16

17

18

19

20

Source: Survey on Industrial Accidents, Japan’s Ministry of Health, Labour and Welfare	Promoting Activities to Reduce Heat Strokes

Genchi genbutsu education

Genchi genbutsu logistics risk
assessment

In spite of all these efforts, an associate got caught in amachine in a fatal accident at the Higashichita Plant in Aichi
Prefecture on December 6, 2019.
We recognized it was a grave situation that seriously
threatens our corporate foundation. For never repeatingsuch an accident in the future, we made efforts to identify
deficiencies and took measures to prevent recurrence.
Specifically, we conducted a full inspection of similar
machines and operations at all our plants and affiliatedcompanies around the world and added physical measures
to the machines themselves to counter the identified
deficiencies.
In order to establish a process to install equipment ina manner to ensure and maintain its safety, we formed
the Study Group for Intrinsic Equipment Safety led by
the production engineering departments to promote theintroduction of machinery and equipment that are safe

48

Toyota Industries Report 2020

We introduced heat risk assessment in fiscal 2018. Since
then, we have been improving hot working environments forheat strokes according to the identified risks and adopting
preventive measures. As we expect the trend of unusually
hot summers such as the one in fiscal 2019 to continue
in the future, we are stepping up our efforts to improve
hot environments. We have conducted on-site surveys at
workplaces where cases of heat strokes have occurred toquantitatively define sites requiring immediate action andhave been implementing measures accordingly under atwo-year plan. For workplaces whose operations preclude
the adoption of usual measures, we have devised tailoredmeans, optimized the layout of air conditioners and effectively
reduced the associated risks. Through the implementation of
additional preventive measures, such as providing education
on heat stroke prevention and encouraging a practice bysupervisors to directly hand out hydration drinks to operators,
we successfully eliminated the number of heat stroke cases
in fiscal 2020.
We will continue to raise individual awareness for theprevention of heat strokes and foster a workplace culture thatquickly recognizes and responds to such disorders.

Zero heatstrokesEstablish
behavior
and habits

”
ware
s and
“Soft awarenesre)

al e cultu
dividuc
ase in orkpla(Incre ster a w
fo“Hardware”

Behavior
improvement

muscle, bone and water within the body as well as basal
metabolic expenditure. Using these measurements alongwith the body mass index (BMI) based on height and weight,
which had conventionally served as our only indicator, weplan to capture individual physical conditions in more detailand provide appropriate health guidance.
*1: A tool to measure body composition, including muscle, fat, bone and body water

Major Health Promotion Events in Fiscal 2020
Risk
reduction(Improve hot working environments)

	Initiatives for Health Management andImprovement
As a task for the medium term, we are promoting healthimprovement of associates, mainly focusing on preventionof lifestyle diseases and mental health support activities, tocounter risks associated with aging and greater stress. In
fiscal 2020, we examined and adopted measures to foster
health promotion and maintenance activities by closely
supporting associates.
For prevention of lifestyle diseases, we conduct periodic
age-based health education for all associates. We also
feed back to associates the results of an annual healthcheckup and measurements conducted on the same day,including physical fitness, body fat percentage and amountof fat around internal organs, along with advice to improve
lifestyle habits. This health education is designed to provide
motivation for better health by letting associates think about
their health over the course of the one-day program. In
fiscal 2020, we added nine items to the physical fitness
measurement, which relate to flexibility, agility, bodily balance,
muscle strength and endurance, to provide motivation for
promoting physical fitness. Besides measurement results,
we feed back physical fitness propensity scores andcountermeasures, how physically fitted for work, assessmentof physical fitness age and recommended exercises in order
to raise relevant awareness among associates so that they
can work and take active roles until an older age.

Stop smoking awareness events•World No Tobacco Day: One-day no smoking (May 31)•No Smoking Days: Half-day no smoking (for eight days)
Participants of walking events (held jointly with healthinsurance association)

5,627 persons

As part of mental health support activities, we have inplace a system to offer early consultation through a healthrelated hotline. Other activities include upgrading our selfcare/line-care education to prevent new cases of mental
health problems and operation of a return-to-work support
program for persons on long-term leave for prevention of
relapses. We have successfully achieved positive results
through these activities.
Under the stress check system introduced in fiscal 2017,
we again conducted a check on all associates in fiscal 2020.
As in the previous fiscal year, we fed back the check results
to all participants and workplaces with suggestions for
improvement. We also set up an individual interview with adoctor for those wishing to do so and provided improvement
support as necessary to individual workplaces. As a means
to feed back the results to workplaces, we operate an ITbased workplace check results viewing system that allows
the users to perform a precise search of results and tips for
improvement. In fiscal 2020, we started providing the resultsof associate awareness surveys and related improvementImproving Mental Health Support Systems(Introduced a Stress Check System in Fiscal 2017)
Objective

Workplaces

Individuals

Providing information on mental healthPreventive
measuresAge-based health education

For preventing and ameliorating symptoms of metabolic
syndrome, we provide health promotion guidance toassociates with mild obesity or who are slightly overweight, in
addition to specific health guidance required by the Japanese
government. By doing so, we encourage associates toimprove lifestyle habits early on. In fiscal 2020, as a measure
to support associates’ self-help efforts for health promotion
and maintenance, we expanded the scope of our financial aid
system to include expenses for influenza vaccination, medical
examinations for early detection of diseases, exercises andhealth promotion tools. In fiscal 2021, we will introduce abody composition analyzer*1 to measure amounts of fat,Early
detection/
early
resolution

Improving support via the introduction of a stress check system
Encouraging associates
to be more aware of
their health and offering
advice on healthimprovement measures

Mental health education

Relationship with Our Associates

Interviews aspart ofhealth checks

Preventing
relapsesRaisingawareness ofhealth-related
hotlineUnderstanding thecauses of stress in theworkplace andimproving working
environments<Consultation system> Workplacecheck results• Industrial healthviewing systemstaff (in-house)(also providing the• External institutions results of associateawareness surveys)

Return-to-work supportM ajor Activity Indicators
Activity indicator

FY2018FY2019FY2020Participants of age-based
health education*2
Rate of undergoing a stress
check

2,422
persons

2,470
persons

2,357
persons

97%

99%

99%

*2: Temporarily suspended from March 2020 for prevention of COVID-19

49

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

Toyota Industries is promoting measures for prevention of
COVID-19 by formulating a response manual based on
the Japanese government’s and other related guidelines.
We encourage all associates to take seven measures suchas checking body temperature every morning, frequent
hand washing and following proper cough etiquette. Each
workplace is also striving to cut back person-to-person
contact by promoting working from home and online meetings
as well as eliminating non-urgent business trips. We have alsoestablished a system to prevent the spread of infection should
an associate get infected or become suspected of infection.
Outside Japan, we are undertaking business activities while
thoroughly implementing infection prevention measures as per
the instruction of the government of each country.
We will continue to take necessary preventive measures
matching to the conditions of each company and strive tocreate workplaces where associates feel safe to work.

	Enhancing Team Strength
Toyota Industries believes
Management Skills
that it is essential to
Technical Skills
QC, SQC, etc.
Expertise/skills/know-how
enhance team strength
Ability to identify andresolve issues
so that each associate
Ability to merge multiple
Team
Strengthlevels of skill
can work with vitality
Leadershipand the Company can
To pursue improvements
thoroughly and continuously
achieve sustainablegrowth.
Spirit of Harmony
Teamwork
We believe that team
Well-roundedhumanitystrength is made up of“technical skills” thatform the basis of manufacturing, R&D and other productionrelated operations, “management skills” to make maximum
use of technical skills and a “spirit of harmony” that supports
both. While further enhancing our team strength, we are
striving to extend and hand it down beyond all businessdomains, generations and geographic regions.

[Technical Skills]
To develop skills to support manufacturing, the Technical
Learning Center, one of our training functions, plays thecentral role in associate education, offering basic skills
training at the Technical Training School and facilitating
efforts to enhance the skills of young technical staff throughin-house skills contests. We also work to cultivate highly
skilled specialists through participation in the national andinternational skills competitions.
At the 57th National Skills Competition*3 held in 2019,in addition to receiving prizes in various other categories the
Toyota Industries team won a gold medal in the “electricalwelding” category, silver medals in the “structural ironsmith”

50

Toyota Industries Report 2020

Initiatives for Promoting Active Roles of Female Associates

Phase 1

Shoma Kamiya, who won the gold medal
at the 57th National Skills Competition*3: S kills competition for determining
Japan’s top young engineersNumber of Medals Won at the National Skills Competition
FY2016FY2017FY2018FY2019FY2020Gold medal

1

1

1

0

1

Silver medal

2

3

4

0

2

Bronze medal

3

1

1

3

2

Total

6

5

6

3

5

Phase 2Phase 3

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

Undertaking initiatives to promote even greater roles

2002 —

2015 —

Promoting active roles

Efforts for Prevention of COVID-19

and “mechatronics”
categories and bronze
medals in the “mechanicalengineering design –CAD” and “structuralironsmith” categories,
thereby attaining medals
for the 19th consecutive
competition.

Supporting
work-life balanceexamples on the same system, allowing individual workplaces
to analyze their respective conditions from a multifaceted
viewpoint and voluntarily engage in improvement activities.
For these efforts, Toyota Industries was again recognizedin the large enterprise category of the 2020 Certified Healthand Productivity Management Organization Recognition
Program (White 500) jointly promoted by Japan’s Ministry of
Economy, Trade and Industry and the Nippon Kenko Kaigi.
We will continue to undertake activities to promote bothmental and physical health.

2008 —

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

Project to promote more active roles for female
associates in office work and engineering fields
Changing mindsets among managerial staff and across all associates

Career support for female associates
Promoting flexible working practices

Enhancing support systems• Extending the period of child • Introducing a shorter work-hour system for child care
care leave• Introducing a work-at-home system• Introducing a leave system to allow
parental care of children with illnesses• Establishing on-site day care center• Installing delivery lockers• Introducing a “welcome-back” system• Introducing a financial aid systemfor day care costs• Introducing a system of leave
for fertility treatment[Management Skills]
We conduct TICO Business Practices (TIBP) training targeting
managers and associates in office work and engineering
fields, with the aim of mutually sharing the thinking and values
that the Company gives importance to, as well as to enable
our associates to solve problems effectively and efficiently.
TIBP training programs are also provided at affiliatedcompanies around the world in our efforts to raise the level ofmanagement skills throughout the Toyota Industries Group.

[Spirit of Harmony]
We are creating a bright, energetic and caring work
environment that fosters a dynamic workforce and allows
every member to demonstrate his or her capabilities both as
an individual and as a team. We are proactively encouraging
communication not only during work hours but also throughsocial gatherings organized by each workplace, sports days
and summer festivals held by respective business divisions,Group-wide Ekiden long-distance relay races and cheersquads for various sports events held jointly among Toyota
Industries Group companies.

	Establishing Work Environments Where
Diverse Human Resources Can Play Active
Roles
We are implementing a variety of measures to create aworkplace environment that enables a diverse range ofhuman resources to fully exercise their capabilities. These
include helping associates maintain a work-life balance,
promoting active roles of female associates, supporting
the employment of persons with disabilities and creating
an environment in which older associates can work more
actively.

Efforts to Support Work-Life Balance
Since around 2002, we have been setting up various systems
to help associates balance work and family. These include
an on-site day care center; a return-to-work (“welcomeback”) system, which allows associates who have left work
to care for children and family members or to accompany
their spouse for a job transfer to get reinstated under certain
preconditions; a shorter work-hour system for child care;

and a leave system and loan system for fertility treatment.
Through these systems, we provide an environment for
associates to work at Toyota Industries for longer years withpeace of mind.
As an effort to support associates to balance their workand nursing care, we distributed the Handbook for Balancing
Work with Nursing Care to associates aged 40 and above
to help them gain knowledge on nursing care and to createa workplace culture that allows associates to seek advice
easily. We also regularly hold seminars on balancing workwith nursing care for associates and their families and provide
newsletters on nursing careto those who are interested.
As a result of these efforts,
Toyota Industries received“Platinum Kurumin”
certification from the Ministryof Health, Labour andWelfare in August 2019 inrecognition of our excellent
efforts concerning work-lifebalance as well as a “FamilyFriendly Company” award
from the Aichi prefectural
Seminar on balancing work
government in Februarywith nursing care
2020.

Promoting Active Roles of Female Associates
In addition to enhancing various systems to support worklife balance, we have proceeded with the creation of anenvironment that allows female associates to continue
working, and in recent years, augmented our efforts topromote their even greater roles.
In 2015, we set up a project to promote more active roles
for female associates in office work and engineering fields,comprising males and females from different departments.
This project was key for the identification of issues andformulation of policy proposals in promoting active rolesof female associates, which formed the basis for thedevelopment of a Company-wide action plan in clarifying
the initiatives for this project. In carrying out the action plan,we specifically focus on the initiatives to change the mindset
among managers and across all associates, provide career
support for female associates and promote flexible working
practices.
Since fiscal 2017, we have held a seminar for a
cumulative total of more than 1,300 managers who directly
engage in the mentoring and development of associates. In
fiscal 2020, we conducted enlightenment activities to fosterA ction Plan

Implementation
FY2016 – FY2021(1) Launch, message from president(2) Awareness seminar for managerial staff
Changing
mindsets(3) Follow-up on individual development plansamong(4) Getting spouses involved in pre-maternity
managerial
leave seminars
staff and acrossall associates (5) Lectures by male role models(6) Promoting further engagement of maleassociates in child care
(1) Sending associates overseas for training at
an early stage in their careers(2) Career training and interviews for female
assistant managers(Ongoing)(Ongoing)

Career support(3) Role model exchange meetings
for female
associates(4) Early return-to-work support (pre-maternity
leave seminars)(5) Early return-to-work support (financial aid
system for day care costs)(1) Expanding work-at-home options
Promotingflexible working (2) Establishing satellite offices
practices(3) Installing refrigerated delivery lockers
Promoting more active roles of female associates inengineering field

Seminar for managerial staff members

Refrigerated delivery lockers

51Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

an understanding of the environment in which associates,
both male and female, having limited working hours due tonursing care or child care are working. We also worked toraise awareness of human resources development that takes
into account their life events.
In order to create an environment to allow associates
who are balancing work and child/nursing care to work withhigher motivation and pursue career development, we haveenhanced our programs to support the early return to workfrom a break in their career. Efforts include a full-day work-athome system launched in October 2016; pre-maternity leaveseminars started in December 2017 for associates and theirspouses to think about a way of working after returning towork; and a financial aid system for day care costs adopted
in April 2018 for associates working while taking care of
infants younger than one year old.
As a result of these initiatives, the number of female
associates holding the assistant manager or higher position
has doubled from the initial level. In October 2016, wereceived “Eruboshi (“L Star”: L stands for Lady, Labourand Laudable)” certification, which is given to companies
making excellent efforts in promoting female engagement in
the workplace, from Japan’s Ministry of Health, Labour andWelfare. In November 2019, we also received an “Excellent
Company” award from the Aichi prefectural government
under its “Female-Friendly Company” certification program.
We have been making ongoing efforts to improve
workplaces to offer females a wider range of jobs andhigher quality of work, launching new initiatives to promote
active roles of female associates in production operations
and creating a better working environment to enable all
T OPI CNumber of Female Associates Holding Assistant Manager or
Higher Position(Persons)

150

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

100

50

0

	Activities as a Good Corporate Citizen
(FY)

16

17

18

19

20

(As of March 31 of each fiscal year)

Pre-maternity leave seminarassociates working under time constraints to fulfill theirindividual potential.

Employment of Persons with Disabilities
We respect the idea of people with and without disabilities
working together and sharing life and work values. Under thisbasic policy, we continue to employ persons with disabilities
every year. They are assigned to a variety of sections andwork with other members to perform their designated tasks.
In fiscal 2020, the ratio of associates with disabilities on a
non-consolidated basis was 2.41%.
Ratio of Associates with Disabilities (Non-Consolidated)

Promoting More Active Roles of Female
Associates in Engineering Field
We aspire that all associates engaging in production
operations fully work and take active roles until
an older age. In order for female associates to doso, we need to overcome issues of gender-relateddifferences in physical strength and frame as well as
the challenges of working during pregnancy, after
giving birth and while raising children. As a meansof doing so, we formed a Female Working Groupand Job Level Working Group in fiscal 2020. These
groups have been working to review current issues,
identify countermeasures and formulate an action
plan for the next and following fiscal years.

Working group participants

52

Toyota Industries Report 2020

Web

Relationship with Our Local Communities

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

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

(%)
2.5

Link to activities.

M ajor Social Contribution Activities of Toyota Industries andGroup Companies
Theme

Activities

Events to interact with persons with disabilities· “Walk Rally (orienteering),” harvest festival, festival
Support for welfare facilities· Support for charity bazaars at facilities by providing goods
Social· Volunteer work for facility cleanup/repair/pruning/weeding
welfare· Support for sales of products from facilities for persons with disabilities by
providing opportunities to set up stalls· Volunteer listening activities at elderly care facilities
Cooperating in a Soccer Class for Children with Autism or Down
Syndrome (China) (P54)
Support for Youth Invention Clubs· Monozukuri workshops for elementary school children during summer
vacations· Holding handmade kite-flying competitions
Youth· Running craft corners at local events
development
Providing plant-hosted environmental education to elementary school children
Providing monozukuri lessons at school
Holding Mini Concerts at Elementary Schools (P53)
Helping to Distribute School Supplies to Children (U.S.A.) (P54)
Initiatives for forest conservation· Tree thinning activities for conservation of prefecture-owned forests
Environmental· Producing and donating benches that made effective use of thinned wood
protection
Tree-Planting Activities for Creating Rich Forests (P53)
Changing and Reducing Packaging Materials (Netherlands) (P54)
Participation in local traditional event (Mando Festival)
Road cleanup activities in areas around plants
Community Activities to raise awareness for traffic safetycontribution Crime prevention patrols
Cooperating in Local Firefighting Operations and Becoming a “Partnerof Firefighters” (Germany) (P54)
Holding charity concert
Support for international NGO through volunteer activities to collect spoiled
Other
postcards and others
Periodic blood donation drives(Activities without country designation were conducted in Japan.)

2.4
2.3

Activity Examples of Toyota Industries (Japan)

2.2
2.1

Holding Mini Concerts at Elementary Schools

2.00(FY) 16

17

18

19
20
(As of June 1 of each fiscal year)

Creating a Work Environment for Older Associates
In order to enable older associates to work and take activeroles in production operations, we have been focusing on
creating a better, less physically stressful work environment
for them by formulating rules common to all workplaces on
the handling of heavy objects, working posture and otherpractices, as well as by improving processes in productionlines.
In addition, we hold“Seminars for an Active
Life” for associates
reaching the age of 50
and 55 to give them an
opportunity to envision life
and work for the next
Improvement activity
on an engine production line
10 years.

Youth development

With an aspiration to provide children, who are the leaders of the coming age, with an opportunity
to cultivate richness of mind through “real” music, we started inviting violinists, pianists and otherprofessional musicians and organizing mini concerts at elementary schools in fiscal 2011. In fiscal
2020, we held such a concert at seven elementary schools in Aichi Prefecture. At Yoshihama
Elementary School in Takahama City, in particular, we invited a choral group from Latvia, known
as the singing nation, who sung the school song as a surprise gift for the children. More than 500
children were completely immersed in the choir’s beautiful, transparent voices.
Tree-Planting Activities for Creating Rich Forests

The team leader association of Toyota Industries has been
undertaking tree-planting activities since fiscal 2012 with the aimof restoring biodiversity and creating rich forests. In fiscal 2020,
about 130 members and their families planted cedar saplings inHamamatsu, Shizuoka Prefecture. It will take some 50 years forthese saplings to mature, and the participants planted each saplingwith care, hoping for healthy growth.

Environmental protection

Mini concert at an elementary school

 umber of Participants of Social
N
Contribution Activities of
Employee Associations(Persons)
1,500
1,000
500
0

Tree-planting activity
for creating a rich forest(FY) 16

17

18

19

20

Each employee association voluntarily andproactively engages in social contribution
activities, with the number of participantsremaining at a high level every year.

53

Determining CSR Materiality
Activity Examples of Consolidated Subsidiaries (Outside Japan)
China Cooperating in a Soccer Class for Children with Autism or Down Syndrome

Social welfare

Toyota Industries Management (China) Co., Ltd. (TIMC)[Import-export trade, logistics operations within China and operation of distribution centers]

Toyota Material Handling (Shanghai) Co., Ltd. (TMHS)[Sales of materials handling equipment]

Toyota Textile Machinery (Shanghai) Co., Ltd. (TTMS)[Installation, servicing and sales of supply parts of textile machinery]

TIMC, TMHS and TTMS volunteered in a soccer class held to support therehabilitation of children with autism or Down syndrome. During the class, about 20
children enjoyed physical exercise through soccer and experienced the joy of scoringa goal through teamwork. At the end of the event, the three companies donatedstationary goods with the Toyota Material Handling Group logo and bath towels madeby using our air-jet looms.

Participants of a soccer classfor children with autism or Down syndrome

Under the Toyoda Precepts(corporate creed), Toyota Industries
has been pursuing solutions to social
issues and undertaking a broad rangeof businesses since its founding. In
keeping with recent changes in thebusiness environment, we have once
again clarified which social issues
we should tackle as our CSR material
issues, and will work to contribute to
the resolution of these issues.

CSR Materiality

SDGs to Contribute

Mitigation of Global Warming
Contribution to Circular Economy

Resolving Social
Issues throughOur Business

Foundation
Supporting
Our Business
Operations

Creation of Innovative ValuesP roducts and Services Which Contributeto Safety, Security and ComfortM utual Prosperity through Partnerships
with Local Communities
Safe and Healthy Work Environments
Leveraging Diversity and Inclusion
Sustainable Procurement
Compliance and Risk Management

Process to Determine CSR Materiality
U.S.A. Helping to Distribute School Supplies to Children

Youth development

Uster Technologies, Inc. (USTER USA)

1 Identification of Issues Relevant to Toyota Industries

Identifying, among various social issues, the ones relevant to our business activities based on the United
Nations’ 17 Sustainable Development Goals (SDGs) and 169 targets as well as guidelines[Production, sales and after-sales services of quality measurement instruments for fiber, yarn and fabric]

In August 2019, USTER USA participated in the annual “Shoes for School” event
organized by the local NPO Knoxville Area Urban League. The event is conducted withthe aim of supporting children to head back to school and start their academic year
well prepared with new shoes, socks, school supplies and free haircuts. At the event,associates packed and distributed 6,000 pairs of socks donated from an apparel
manufacturer. USTER USA volunteers were grateful to be part of the local communitythat came together to bring a smile on children’s faces.

[Items we refer to]1) 17 SDGs and 169 targets

2) Important ESG items
Children receiving school supplies
at the “Shoes for School” event

Netherlands Changing and Reducing Packaging Materials

Environmental protection

Vanderlande Industries Holding B.V. (Vanderlande)

2 Assessment of Importance

Assessing the importance of the identified issues from both internal and external viewpoints to selectthose having higher degrees of importance[Assessment method]

For protection of the environment, Vanderlande changed and reduced packaging
materials used to transport spare parts necessary for maintenance of logistics
systems. Firstly, Vanderlande changed packing tape from vinyl to recyclable paper,
which is expected to reduce its annual plastic consumption equivalent of 30,000
meters of tape. Another improvement was a reusable separator to place a maximumof eight small parts, which had been packaged separately, in one box. Vanderlande
will continue to make effective use of resources and undertake its corporate activities
in an environmentally friendly manner.

1) Conducting questionnaires and discussions with relevantinternal departments2) Plotting onto a 2 x 2 materiality matrix to selectissues having higher degrees of importanceImportance whenviewed from outside[Provision of logistics solutions]

Package using a reusable separator

Importance for Toyota Industries

Germany Cooperating in Local Firefighting Operations and Becoming a “Partner of Firefighters”

Community contribution

3 Validation of Adequacy

TD Deutsche Klimakompressor GmbH (TDDK)[Production of car air-conditioning compressors]

Conducting reviews by both our top management and outside experts to receive feedback and confirm
the adequacy of the selected issues

In rural areas near Bersndorf in the Free State of Saxony, where TDDK is located, local
fire brigades are mostly on a volunteer basis and in case of need volunteer firefighters
get an alert. TDDK supports their activities through donations as well as encouraging
and allowing associates to respond to alert calls during their work time. As a show ofgratitude, TDDK was honored as a “Partner of Firefighters” in October 2019 by thecounty’s head of firefighters. TDDK will continue its ongoing efforts to cooperate inlocal firefighting operations.

4 Approval by Top Management
Local fire brigade supported by TDDK

54

Toyota Industries Report 2020

Gaining approval of the CSR Committee chaired by the president and comprising our top management
based on the validation results

55Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Special Feature on the Environment

Special Feature on the Environment
Evaluation of the Efforts of TMHMS

TMHMS’ Path toward Zero
CO2 Emissions

These advanced efforts of TMHMS throughout
its business activities were highly recognized. In
December 2019, the company received a Biogas
Award (second place), which is given to local
governments, companies and individuals in Sweden,
and was selected as the Sustainable Company of theYear by the local community.

Toyota Material Handling Manufacturing Sweden AB(TMHMS), a subsidiary manufacturing materials handlingequipment in Sweden, became the first company in the

Future Activities to Reduce CO2 Emissions
throughout the Product Lifecycle

Toyota Industries Group to achieve a zero CO2 emissions plant.

Toyota Material Handling Europe AB (TMHE), a subsidiary serving as the regional
headquarters of the materials handling equipment business in Europe, has formulated a
two-pronged policy aimed at zero energy muda (waste) and zero carbon emissions fromour operations by 2030 in accordance with Toyota Industries’ Environmental Action Plan.
Based on this policy, the TMHE Group has been striving to reduce CO2 emissions at all of
its bases in Europe in collaboration with customers and business partners.
In 2019, TMHMS, one of TMHE Group companies, became the first company in the
Toyota Industries Group to achieve a zero CO2 emissions plant and realize the policy.
We will share their efforts and accomplishments broadly both in and outside the Toyota
Industries Group and seek to contribute to the creation of a sustainable society.

❷ Only using electricity from renewable energy

Along with daily energy-saving activities, TMHMS madeefforts in three major areas.

TMHMS introduced hydropower in 2015 and became thefirst company in the Toyota Industries Group to solely use
green electricity, thereby eliminating CO2 emissions fromelectricity consumption.

①

②

③

Switching to districtbiomass-derived
steam for heating*

Only using electricity
from renewableenergy sources

Switching from LPG
to biogas

Zero CO2 emissions plant❶ Switching to district biomass-derived steam
for heating

As its heating-purpose energy, TMHMS uses biomassderived steam supplied through district heating. TMHMS
replaced heavy oil used for space heating and liquefied
petroleum gas (LPG) for heating wash water in the painting
pretreatment process with biomass steam in 1987 and2009, respectively.

Toyota Industries Report 2020

Richard Bjersér

Environment Manager ofProject Zero

Project Manager ofProject Zero

Three key factors led to the success of the
project. The first is the Toyota Industries Group’s
clear Environmental Vision, which provided
strong motivation for us to work for a zeroCO2 emissions plant. The second is strong
management on site, with project members fromvarious departments gathering their capabilities
to carry out a reliable simulation for realizing
a zero CO2 emissions plant. The last is that abiogas plant promoted under Sweden’s majorenergy policies was located nearby.

■ Path toward Achieving a Zero CO2 Emissions Plant

Toward a Zero CO2 Emissions Plant

Daily energy-saving activities

56

Ernesto Domínguez
TMHE President and CEO

In addition to achieving zero plant CO2 emissions, TMHMS
has been working to reduce CO2 emissions throughout the
product lifecycle from production to sales, use, disposal
and recycling. In January 2020, TMHMS made a first stepin its efforts to reduce logistics-derived CO2 emissions
with the introduction of biogas trucks in collaboration withtransportation companies. These trucks will be used in someof the transportation operations between TMHMS plants
and between TMHMS and business partners. In production
operations as well, TMHMS is making continuous efforts
to reduce energy consumption by installing solar panels,
visualizing energy use and undertaking kaizen (improvement)
activities. Through these endeavors, TMHMS intends to makea higher level of contribution to the realization of a low-carbon
emission society.

Johanna Arnstedt

sources

1987: Switch from heavy oil to biomassderived steam (for space heating)2009: Switch from LPG to biomass-derived
steam (for heating wash water in the
pretreatment process of painting
application)

2017: Replace LPG burners
with electric burners

2018: Reduce the temperature
for pretreatments andof ovens in the painting
process

2015: Power contract forhydropower generation❸ Switching from LPG to biogas

Switching to biomass steam and green electricity only left
one issue: about 3,000 tons of CO2 emitted every year
from the use of LPG mainly in painting dry-off ovens. To
eliminate the emissions, the manufacturing, environment,
procurement and other departments of TMHMS joined
hands and launched Project Zero in 2017. After muchconsideration, they decided to introduce biogas, a gas frombiomass, which does not use fossil fuels, and began toinstall necessary equipment and modify existing facilities.
TMHMS completed its switch to biogas in August 2019 andachieved a zero CO2 emissions plant for the first time in the
Toyota Industries Group.

Continuous energy1987
saving efforts

2009

2015

2019: Switch from LPG to biogas;
Install solar panels

2017

2018

2019:
Achieve a zeroCO2 emissions
plant

2019

2020

*B
 iomass is a general term used to referto organic materials coming from plants
and animals. When viewed from thelifecycle of an organic material, biomass
is regarded as carbon neutral, as CO2
emitted when generating steam orburning gas is offset by CO2 absorbed
during photosynthesis.

Displays celebrating World Environment Day

Production at carbon-free plant

57

Company Introduction

Web

Environmental Initiatives

Environmental Initiatives

n Product Related
Sixth Environmental Action Plan Targets

Reducing Environmental Risk andEnvironmental Management ——————— P65–67
Establishing a Society in Harmony with Nature —— P63–65

Action Policies

Sixth Environmental Action Plan
The results of our activities in fiscal 2020 showed steady progress across the board toward achieving respective
targets for fiscal 2021.

	Progress of Sixth Environmental Action Plan
With an eye to realizing a prosperous life in harmony with
the natural environment through the establishment of asustainable society, we formulated the Sixth Environmental

Action Plan for the period from fiscal 2017 to fiscal 2021
and are promoting activities according to the plan. Throughactivities undertaken during fiscal 2020, we made steadyprogress toward achieving respective targets for fiscal 2021.

n Production Related
Establishing a Low-Carbon Emission Society
Action Policies/Specific Actions

FY2020 Achievements

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

Subject

CO2
emissionsControl Items

Base Year(FY)

Achievements

Targets

Nonconsolidated

Total
emissions

2006

–14%

–10%

–28%

–26%

–33%

–30%

–36%

–28%

Emissionvolume perunit of
Non1
consolidated production*

2006

Emissionvolume perunit ofproduction

2007

GlobalPromote effective resource utilization in
production activities•Reduce use of packaging materials•Monitor water input and output in each country/region
and develop and promote appropriate measures

FY2020 Achievements
Subject

Scope

Japan
consolidated
Waste
generation
volumeNonconsolidated

Control Items

Base Year(FY)

Reduce CO2 emissions throughproduct and technology
development

Establishinga Recycling-BasedSociety

Implement initiatives to promote
3R (reduce, reuse and recycle)
design for effective resource
utilization•Reduce use of resources through longer product life
•Reduce use of resources through standardization, modularization
and reduction of components•Reduce use of resources through development of technologies toenable weight reduction and downsizing•Promote reuse of components and resources•Developed new DC-DC converter•Developed next-generation engine•Developed new AC inverter•Developed fuel cell lift truck

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

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

Manage chemical substances
contained in products•Investigate chemical substances contained in products andmanage switching over of SVHC*3 and other substances ofconcern to other substances•Supported business partners in Japan for establishinga chemical substance management system•Conducted survey on chemical substances
contained in products

Achievements

Sixth Environmental Action Plan Targets
Action Policies

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

–27%

2006

–44%

FY2020 Achievements
Subject

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

VOC*2
emissions

Scope
Nonconsolidated(automobile
body)

Control Items
Emissionvolume perunit ofproduction

Achievements

2006

–36%
(24g/m2)

FY2020 Achievements

Augment activities related toprotection of biodiversity

Augment and promoteconsolidated environmental
management•Build a global environmental management system and promote
related activities to:Comply with environment-related laws in each country and region
Formulate a medium-term plan based on visualization ofenvironmental risks and conduct activities to prevent risks fromoccurring
Enhance risk communication with relevant organizations andlocal residents
Achieve the highest-level environmental performance in eachcountry and region•Enforce strategic environmental management that integrates
environmental activities and business activities•Promoted mitigation activities•Inspected environmental risks at production
bases in Japan•Introduced Reporting System for Improvementin Sustainability Engagement (RISE)

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

Promote environmental activities
in collaboration with business
partners•Ensure compliance with laws and regulations and improve
environmental performance based on the Environmentally
Preferable Purchasing Guidelines•Held briefing sessions for business partners in Japan•Held an environment-related liaison meeting ofbases in China•Pursue higher brand image through proactive information
disclosure•CDP*4 climate change: ranked A(on a performance band of A to F)•CDP water security: ranked A(on a performance band of A to F)•Received a Minister of Economy, Trade andIndustry award in the Energy Conservation Grand
Prize program (Nagakusa Plant)•Participated in All Toyota Green Wave Project•Devised biodiversity conservation action plan
within Toyota Industries premises

Promoting
Environmental
Management–29%

Improve eco-conscious brand
image

FY2021 Targets

Base Year(FY)

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

Targets

Reducing Environmental Risk and Establishing a Society in Harmony with Nature
Action Policies/Specific Actions•Developed new vane-type compressor•Developed next-generation electric compressor•Developed new vehicle•Reduced air consumption of air-jet looms•Developed fuel cell lift truckn Others

FY2021 Targets–44%
Emissionvolume perunit ofproduction

FY2020 Achievements

Establishinga Low-Carbon
Emission Society

Establishing a Recycling-Based Society

Promote measures against resource depletionby recycling waste•Reduce the volume of discarded materials by taking action
at the source, such as improving yields and other measures•Promote internal reuseSpecific Actions•Develop technologies that contribute to an even greater levelof energy efficiency•Develop products and technologies that respond to electrification•Develop technologies to enable weight reduction•Reduce energy loss
•Develop technologies for the realization of a hydrogen-based society

FY2021 Targets

Scope

CO2
Nonemissions
from logistics consolidated

Action Policies/Specific Actions

Corporate Information

Link to initiative details.

Vision for Environmental Activities / Structure to
Sixth Environmental Action Plan ————— P58–59
Establishing a Low-Carbon Emission Society — P61–62
Implement Environmental Management ————— P60–61
Establishing a Recycling-Based Society —— P62–63

Strategies and Businesses Promotion of ESG Initiatives

Targets–36%(24g/m2)*1: We manage emissions in each business by using either unit of production or unit of sales as a basic unit of emissions. The weighted average ofreduction rates of all businesses is used as our management index.
*2: Volatile Organic Compounds*3: Substances of Very High Concern*4: An international NGO running a project in which institutional investors work together and request companies around the world to disclose theirstrategies against climate change and greenhouse gas emissions data

Web
Link to the action plan.

Details of the Sixth Environmental Action Plan are available at our Website.

58

Toyota Industries Report 202059

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

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

an external lecturer for upgrading the quality of our internal
audits. The curriculum covered a method to audit on-siteenvironmental management, which is one of the priority audit
items for fiscal 2020, and participants accordingly learned
required skills.

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

Environmental risk
reduction
Society in harmony
with nature
Low-carbon
emission society

Recycling-basedsociety

Environmental Management

Notional Diagram of Global Environmental Commitment

to realizing a prosperous life in harmony with the naturalenvironment.

	Aspirations in 2050 and the Sixth
Environmental Action Plan
Following the 2015 adoption of the Paris Agreement, aninternational framework for action against climate change, theestablishment of a low-carbon emission society has become
a global common goal. For Toyota Industries as well, theneed to take further proactive measures is growing as global
environmental issues continue to become of greater concern,with more people becoming increasingly conscious about theenvironment.
Under the circumstances, in 2016 we defined ouraspirations in 2050. The Global Environmental Commitment,
which represents our basic approach to environmental
activities, specifies four action themes, namely, 1) establishinga low-carbon emission society; 2) establishing a recyclingbased society; 3) reducing environmental risk and establishinga society in harmony with nature; and 4) promoting
environmental management. As a milestone toward achieving
our aspirations in 2050, we have formulated the Sixth
Environmental Action Plan, a five-year plan for the period
from fiscal 2017 to fiscal 2021, and will resolutely undertake
activities in accordance with the plan.

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

	Promotion of Environmental Management
SystemToyota Industries has positioned environmental response as
one of its most crucial management issues. To quickly reflect
top management’s decisions on business operations, Toyota
Industries has established and been operating a Companywide integrated environmental management system (EMS),
with the president at the top.
As in the previous fiscal year, in fiscal 2020 we conducted
introductory educational courses to foster the knowledge
needed for environmental management and an introductory
educational course for environmental audits to cultivate
knowledge and techniques of internal audits. As department
heads and other personnel in managerial positions
proactively attended these courses, we were able to promote
the enhancement of environmental management and thedevelopment of internal auditors.
For internal auditors, we provided skill-up training by

60

Toyota Industries Report 2020

Environmental Management Structure
Organizations

Committees
Environmental Committee

PresidentInternal audit
Responsible internal auditor

Specialized committees•Team leader•Supervising auditors•Auditors

Product Environment Subcommittee

Chief environmental administrator
Admin office
Head Office
Corporate Planning
R&D
Purchasing
Quality Assurance
Human Resources
General Administration

Divisions
Materials Handling Equipment
VehicleProduction Environment Subcommittee
Company-Wide CO2Emission Reduction Conference
Company-Wide CO2 Zero
Emissions Challenge Subcommittee

EngineCompressor
Electronics
Textile Machinery

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

Division-Based
Promotion Committees

Toyota Industries implements annual internal environmental
audits as well as external audits carried out by anindependent third-party institute.
In fiscal 2020, the external review identified no nonconformance issues. The review, however, pointed out somematters that could potentially constitute non-conformanceat one plant. We have been making improvements regardingthese matters and sharing details with other plants.
We continued to conduct internal audits under themutual, interdivisional audit system. We strived to upgrade
our auditing capabilities by organizing audit teams with thedual goals of fostering the development of auditors andincreasing audit efficiencies. In the area of audits, our focus
was placed on environmental policy management and onsite environmental management, and we clarified how mucheach business division contributes to overall environmental
management and checked if there are any environmental
risks in each division.

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

	Efforts for Reducing CO2 Emissions

Our Approach
For Toyota Industries, dealing with global warming is
not just a “risk.” It also presents “opportunities” in doing
business to both differentiate ourselves by leveraging ourtechnology-based product appeal and conduct ecoconscious production activities.
In our aspirations in 2050, we set a goal ofestablishing a zero CO2 emissions society on a global
basis and have been making efforts in various fields. In
the area of product development, our focus includes
electrification and increasing the fuel efficiency ofengines. In production activities, promoting thoroughenergy savings and utilizing renewable energy andhydrogen are the two pillars of our activities. As specificefforts, we will adopt solar and other renewable energy
sources and effectively utilize hydrogen while thoroughly
eliminating wasteful use of energy in production
processes and increasing the efficient use of energy.

Summary CO2 Emissions (Production Activities)
FY2020 Results

The Higashiura Plant, a compressor production base in
Aichi Prefecture, has been promoting measures to reduce
CO2 emissions from the drying and baking process, which
consumes a large amount of energy.
In the process, it is important to keep the thermal
processing equipment at an even temperature. This causes
the wasteful use of energy as it requires the same amountof energy even if there is a drop in production volume. In
response, the plant started sharing a drying and baking
process between two lines manufacturing different products
and successfully increased energy efficiency.
The drying and baking process also requires a large
amount of energy to restore the temperature of theequipment once it has stopped. In order to prevent theirregular shutdown of the equipment, the plant adopted
multifaceted measures, such as preventing product line
sorting errors by installing a sensor after the baking process
and eliminating bottlenecks by making the conveyor line
straight.
These measures enabled the plant to reduce its annual
CO2 emissions by about 298 tons.
After Improvement
Sharing

Total emissions (non-consolidated)

14
28% reduction (vs FY06 level)

FY21 target:

10% reduction

Line 1

Washing

Painting

Drying Baking

Line 2

Washing

Painting

Drying Baking

Line sorting
sensor(vs FY06 level)

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

FY21 target:

26% reduction(vs FY06 level)

Suspended

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

61Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

T O PI C

Iwama Loom Works Receiving a DirectorGeneral of the Chubu Bureau of Economy,
Trade and Industry Award as an Excellent
Energy-Saving Business Operator
In February 2019, Iwama Loom Works, Ltd., a subsidiary
manufacturing compressor parts in Aichi Prefecture, wasrecognized for its proactive energy-saving efforts andoutstanding outcome and received a Director-General of
the Chubu Bureau of Economy, Trade and Industry Award
as a business operator conducting excellent energy
management. The company presented details of its efforts
at the Symposium on the Rational Use of Energy hosted
by the bureau in January 2020.
Iwama Loom Works has been making steady andingenious energy-saving efforts, such as the promotion ofenergy just-in-time (JIT) activities that visualize and reduce
the wasteful use of energy and creation of a non-powered
karakuri mechanical pump for the recovery of liquid waste.

Yuu Sato
Group leader
Safety and Environment Group
General Affairs Department
Iwama Loom Works, Ltd.
(As of March 31, 2020)

Because gaining the understanding and cooperationof the Manufacturing Department was essential
in promoting our activities, we worked to build a
relationship of trust with them and proceeded while
checking each step together. We also devised a way
to visualize the outcome through such measures
as showing how much money we have saved byconserving energy.

Establishing a Recycling-Based SocietyWith a view to establishing a recycling-based society, we have been striving to reduce waste and theconsumption of water and other resources.

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

Waste Generation Volume (Production

Summary Activities)

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

44

FY21 target:% reduction (vs FY06 level)

29% reduction(vs FY06 level)

Waste generation volume per unit of production(non-consolidated/consolidated subsidiaries in Japan)

44

FY21 target:% reduction (vs FY06 level)

27% reduction(vs FY06 level)

Under the Sixth Plan, we are working toward achieving the
fiscal 2021 targets of reducing waste generation volume perunit of production compared with the fiscal 2006 level by
29% on a non-consolidated basis and by 27% for Toyota
Industries and its consolidated subsidiaries in Japan.
The Toyota Industries Group seeks to reduce ocean plastic
pollution by making improvements in its business activities
and encouraging behavior change among employees.
Vanderlande Industries Holding B.V., a subsidiary engaging
in the logistic solutions business in the Netherlands, changed
the packing tape used in one of its warehouses from plastic
to paper and successfully achieved a reduction in the use ofplastic tape equivalent to about 30,000 meters per year.

Toyota Industries Report 2020

Our Approach (Water Resources)
Water is the basis of all life on the Earth and is an
irreplaceable and valuable resource. Every year, however,
we have been witnessing the increasingly severe impactsof droughts, floods and other natural disasters resulting
from climate change as well as shortages in drinking
water and agricultural water caused by the growth in
the world’s population. Many of the processes of Toyota
Industries use water for washing products and in thepainting process, and we regard the water supply crunch
caused by climate change and population growth as asignificant risk to our business activities.
In our aspirations in 2050, we set a goal ofminimizing the environmental impact on water resources.
We have identified the status of water risks at Toyota
Industries and consolidated subsidiaries and havebeen undertaking activities matched to the respective
conditions with a focus on reducing water intake,promoting recycling and purifying wastewater.

	Efforts for Recycling Water and Reducing
Water Intake
Each production base of Toyota Industries has been making
various efforts to promote the recycling of water andreduction of water intake.
For example, Toyota Industry (Kunshan) Co., Ltd. (TIK),
a subsidiary manufacturing lift trucks and foundry parts in
China, has implemented a variety of measures and achieved
zero wastewater from plant production processes. These
measures include purifying and reusing wastewater frompainting processes and installing evaporative concentrationequipment and reverse osmosis (RO) membranes to purify
wastewater for reuse and to reduce wastewater discharge.
TIK intends to maintain zero wastewater and help reduce
the environmental impact on public waters while continuously
working to reduce water intake.
Flow of Reusing Wastewater from Production Processes
Reusing (recycling)
Evaporative
concentration Biotreatment by RO membraneprocessing microorganisms

Oil and water
separation

Plant

Discharge
Waste (oil sludge)
What isan RO
membrane?

Waste (concentrated liquid waste)

Only water molecules
go through themembrane.

Water molecules
Contaminants(bacteria, heavy metals, etc.)

FY2020 Results	Efforts for Reducing the Use of Plastics

62

Additionally, Toyota
Material Handling
Manufacturing Italy (TMHMI),a subsidiary manufacturing
materials handling equipment
in Italy, installed water
dispensers at its production
sites in the summer of 2019
Employees holding their personal bottles
and gave away reusable
water bottles to employees, thereby promoting the reductionof PET bottles. The initiative was expanded in November
2019 to include its offices.

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

Our Approach (Conservation of Biodiversity)
Deforestation is now proceeding in various parts of theworld, causing the fragmentation of the habitats of livingorganisms. In order for humankind to live in harmony withnature, it is essential to protect nature in each region.
In our aspirations in 2050, we set a goal ofgenerating a positive influence on biodiversity andhave been conducting various business activities
while continuously paying attention to their impact
on the natural environment. We have also formulated
the biodiversity policy and been promoting initiatives
accordingly. The policy clearly stipulates that we seek
to reduce the impact of our business activities on

biodiversity and work with local communities for theconservation of biodiversity.

	Creating an Animal Path to Improve Natural
Habitats of Living Organisms
In recent years, we have found that foxes are living in
the wooded area surrounding the Higashiura Plant in
Aichi Prefecture. But because there is not a large enoughhabitat, many were fatally involved in traffic accidents on
the neighboring roads. To provide a safe passage between
these wooded areas, Toyota Industries created an animal
path within the plant premises and has been checking the
inhabiting status. Since observing a fox on the animal path63

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

for the first time six months after its creation, we have been
regularly seeing foxes using the path. We will continue tomonitor the status while implementing additional measures asnecessary to create a better environment.

Foxes using the animal path	Chita Peninsula Ecological Network ForumAs part of efforts to conserve biodiversity, Toyota Industries
collaborates in an initiative of the Aichi prefectural government
to promote the development of ecological networks within
the prefecture.
In fiscal 2012, we joined the Chita Peninsula Ecological
Network Council and have since been carrying out activities
linked to the local natural environment while working withvarious concerned parties, including local governments,
companies, NPOs, expert bodies and students.
At the Chita Peninsula
Ecological Network Forum
held in December 2019
under the theme of “theday when foxes comeback,” we exchanged
views with participants on
Chita Peninsula Ecological Network Forumthe status of Japanese
red foxes once declared
regionally extinct and conducted a presentation on our animal
path initiative. We will continue to collaborate with local
communities and proactively undertake activities to expand
ecological networks.

	Joint Initiative of Toyota Group Companies
to Conserve Endangered Bird Species in the
Kinuura Bay Area
Under the Sixth Plan, we formulated a plan to connect
green zones by undertaking activities for the conservationof biodiversity throughout the Toyota Industries Group. Each
plant of Toyota Industries has been collaborating with various
concerned parties to carry out initiatives matched to the local
characteristics.
Under the guidance of experts, the Higashichita Plant, anengine production base in
Aichi Prefecture, has beenworking with other Toyota
Group companies torestore Kinuura Bay to its
original state by protecting
endangered bird species
in its coastal area. Their
Plant-wide bird survey
at the Higashichita Plant
efforts in the future will

64

Toyota Industries Report 2020

focus on creating a natural environment that has a constant
supply of fresh water, which is essential for living organisms,
and is inhabited by insects the birds feed on.

	Cooperating with an NPO to Provide
Environmental Education to Children
Toyota Material Handling Mercosur Indústria e Comércio deEquipamentos Ltda (TMHM), a subsidiary manufacturing
materials handling equipment in Brazil, has been carrying out
environmental enlightenment activities both in and outside thecompany.
In August 2019, TMHM provided environmental education
to children in cooperation with the NPO Casa do Caminho.
At the event, children received a lecture on air pollution andglobal warming and talked about how these two issues
impact their daily lives and what they can do to prevent them.
To increase the children’s environmental awareness,
TMHM, together with the children, created flower pots fromused PET bottles and planted seedlings using these pots.

Our Approach (Substances of Concern)
Currently, air pollution by chemical substances has
become a global issue having equal importance as
global warming. As such, countries around the world
are adopting more stringent environmental regulations
each year. How Toyota Industries responds to theseregulations will have a significant impact on the businessactivities we undertake in each country.
Based on this perception, we have been taking aforward-looking approach, anticipating fuel efficiency
and emissions regulations to be enforced by eachcountry and region, and promoting product development
accordingly. In production activities, we have beenworking to reduce emissions of volatile organic
compounds (VOC), which are causal substances ofphotochemical oxidants that generate smog.

Summary VOC Emissions (Production Activities)
FY2020 Results
Emissions per unit of production(non-consolidated/automobile body)36% reduction (vs FY06 level)

FY21 target:

36% reduction(vs FY06 level)

Under the Sixth Plan, we set a target of reducing emission
volume per unit of production for VOC from the automobile
body painting process by 36% from the fiscal 2006 level
and have been striving to reduce VOC emissions. In fiscal
2020, we continued our efforts to increase the recovery rateand enhance the maintenance and management of thinner.
Consequently, we were able to cut down emission volume
per unit of production in fiscal 2020 by 36%.

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

	Status of Compliance with Environmental
Laws
Environmental education to children provided in cooperation with an NPO

	TMHMF’s Initiative for the Conservation of
Biodiversity
Toyota Material Handling Manufacturing France SAS(TMHMF), a subsidiary manufacturing materials handlingequipment in France, has been conducting activities tocontribute to the conservation of biodiversity.
In September 2019, TMHMF set up an eco-farm andstarted raising Ouessant, an endangered sheep breed.
The farm is protecting the rare breed while saving energy
for operating mowing machines by letting the sheep grazeon the grass. The farm also provides a petting zone for
employees, which has served to raise their awareness of
biodiversity and increase communication among them.
As another effort to conserve biodiversity, TMHMF held aphoto contest on the theme of biodiversity in June 2019.

With an eye to minimizing environmental risks to local
communities, the Toyota Industries Group is striving toprevent violations of environment-related laws. Such initiatives
include taking measures against the recurrence of potentiallyserious near-accidents that may result in legal violations andperforming environmental risk inspections at its plants.
In fiscal 2020, there was one case of violation of airrelated laws at one of our consolidated subsidiaries outside
Japan. We have thoroughly implemented necessary
countermeasures and shared relevant information within
Toyota Industries and with other Group companies to preventa similar incidence throughout the Group.

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

	Conducting Environmental Risk Inspections
at Consolidated Subsidiaries in Japan
Ouessant, an endangered sheep breed

Photo contest
on the theme of biodiversity

In addition to our own production bases, we are promoting
activities to reduce environmental risks at our manufacturingsubsidiaries in Japan.

We again conducted genchi genbutsu (go and see foryourself) environmental risk inspections at such subsidiaries
in fiscal 2020 to check facilities on their premises, theboundaries of their premises, discharge outlets and waste
storage sites and confirmed that they were managed well.
We will continue to monitor the status of their responses
to the identified issues and conduct risk inspections at our
subsidiaries on an ongoing basis.

	Responding to More Stringent
Environmental Regulations in China
Toyota Industries’ production bases in China manufacture
various products, including materials handling equipment, carair-conditioning compressors and foundry parts.
In recent years, China has been making frequent revisions
to its environmental laws on air and water quality, tightening
regulations with each revision. We regard a violation of theseenvironmental laws as a business continuity risk to the
Toyota Industries Group, as it may entail the suspension of
production or other penalties, which in turn will directly leadto a disruption of our supply chain and damage our brandimage.
In order to ensure compliance with environmental laws at
our bases in China, in September 2019 we started reinforcing
environmental management and support in the country, with
Toyota Industries Management (China) Co., Ltd. (TIMC) taking
the lead.
Specific efforts include providing updates on revisions
to environmental laws, checking the status of compliance ateach base and providing support for improvement. We will
also promote mutual improvement by sharing information andencouraging communication among the bases.

65

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

In December 2019, we held an environmental liaison
meeting of the Toyota Industries Group’s bases in China
at Toyota Industry (Kunshan) Co., Ltd. (TIK). During themeeting, environmental officers from these bases and Toyota
Industries shared the Group’s environmental action policy inChina, gave briefings on the latest updates on the country’s
legal trends and exchanged views. As part of this meeting, an
on-site inspection was also conducted at TIK.
We will continue tocarry out appropriate
environmental management
and support so as toensure compliance withenvironmental laws andreduce any businessOn-site inspection conducted
continuity risk at our bases
as part of the liaison meeting in China
in China.

autonomous activities of each company.
We will augment our environmental management byextending the scope of RISE and further solidifying our supply
chain network.
Environmental Data Aggregation System

ReportingdataCollecting
information

Aggregating
data

Environment-related
departments of Toyota Industries	Partnering with WIPO GREEN
We became a partner of WIPO GREEN, a marketplace
to spur innovation and diffusion of green technology.
The platform is run by the World Intellectual Property
Organization (WIPO), a specialized agency of the United
Nations, to support global efforts to achieve the Sustainable
Development Goals (SDGs).
As a WIPO GREEN partner, we have registered in the
database patents for our plastic glazing (PG) that contributes
to higher fuel efficiency through the reduction of vehicle
weight, carbon fiber reinforced plastic (CFRP) and solar
heat collection tube used in thegeneration of renewable energy.
We will continue to moveahead with our efforts related
to environmental products andtechnologies and contribute to therealization of a sustainable society.

	Leveraging IT to Augment Environmental
Management
With the dual aims of improving environmental performanceassociated with business activities and fulfilling our
information disclosure responsibility, the Toyota Industries
Group has been collecting environmental data of Toyota
Industries and its consolidated subsidiaries in and outside
Japan. In fiscal 2020, we introduced an environmental data
aggregation system to raise the efficiency of data collection
and the accuracy of the collected data. We call the systemby the nickname RISE (Reporting system for Improvementin Sustainability Engagement). The name embraces ouraspiration to contribute to a sustainable society and reinforce
our environmental response.
The use of RISE to centrally manage the environmental
data of Group companies
has enabled us to accurately
identify the environmental
impact and trends in theentire Toyota Industries
Group. The promotionof information sharing
throughout the Group has
Briefing session for consolidated
subsidiaries
also led to more active,

66

Toyota Industries Report 2020

Providinginformation

	Verification by a Third Party
Toyota Industries obtains third party verification in order toincrease the credibility of its data on energy-derived CO2
emissions, waste generation volume, water consumption andwastewater discharge.
We will continue to utilize this third party verificationin making continuous improvements in our environmental
activities and disclose data to our stakeholders in a moretransparent manner.
Details of verification and theverification statement of thethird party organization areavailable at our Website.

Web
Link to details andverification statement.

	External Evaluations of Toyota Industries’
Environmental Activities
External Environmental Evaluations
Toyota Industries fosters environmental communication with
our stakeholders through proactive disclosure of environmental
information.
Since fiscal 2015, we have been participating in the
Ministry of the Environment’s project for the establishmentof a framework for disclosure of environmental informationand examining the ideal way to disclose our environmental
information. We will continue to upgrade our method of
disclosure and contents to be disclosed.

Selected as an A-List
Company in CDP Survey
on Climate Change for Two
Consecutive Years
Toyota Industries was selected for
the A List for two consecutive years
in a survey conducted by CDP on climate change
as a company making especially outstanding efforts
to reduce greenhouse gas emissions and mitigate
climate change. The Toyota Industries Group definedits aspirations in 2050 in March 2016, and based onthese aspirations, formulated the Sixth Environmental
Action Plan, a five-year plan for the period from fiscal
2017 to fiscal 2021. Our proactive activities under
the plan, particularly the tandem efforts to develop
products with high environmental performance andreduce CO2 emissions from production activities, haveresulted in the selection.
We will continue to tackle climate change as
one of our important tasks and contribute to therealization of a sustainable society through our global
environmental conservation activities.

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

Won a Minister of Economy,
Trade and Industry Award in
the 2019 Energy Conservation
Grand Prize
A project of the Nagakusa Plant in Aichi
Prefecture to save energy in the drying
process of vehicle painting won a
Minister of Economy, Trade andIndustry (METI) Award in the Industrial
Field, which is the highest level award
in the 2019 Energy Conservation Grand Prize
program (Best Practice Category) run by the Energy
Conservation Center, Japan. This award program
recognizes outstanding energy-saving products andenergy-saving efforts of business operators orbusiness sites. It was the first METI Award Toyota
Industries has received under the program.

List of External Environmental Evaluations

Evaluation organizations

Fiscal 2020

CDP climate changeA

CDP water security

A-

Raymond Winning a Green Supply Chain
AwardIn December 2019, The Raymond Corporation,a subsidiary manufacturing materials handlingequipment in North America, received a Green Supply
Chain Award from Supply & Demand Chain Executive
magazine. The award recognizes companies making
sustainability a core part of their corporate strategy
and carrying out environmental activities. Raymondreceived the award for its efforts to save energy byvisualizing energy consumption and automaticallyshutting down air conditioners when not needed, as
well as efforts to reduce water consumption, reusewater and recycle packaging
materials.
Raymond will proceedwith process improvements
throughout its businessactivities toward therealization of a sustainable
society.

TO P IC

EcoVadis*
TMHE Group Receiving the Highest“Platinum” Rating
Toyota Material Handling Europe AB (TMHE), a
consolidated subsidiary overseeing the materials
handling equipment business in Europe, received
the highest “Platinum” rating from EcoVadis in
its corporate sustainability survey. The ratingcorresponds to the top 1% group of the companies
that have been evaluated.
The TMHE Group has formulated an energy
policy to achieve zero energy muda and has been
engaging in activities based on high sustainability
targets. The Group has been making outstanding
progress, with one of its manufacturing companies
achieving a zero CO2 emissions plant in 2019. (See
Special Feature on the Environment on pages 56–57
for details.) The rating was given in recognition of suchexcellent performance and transparency in information
disclosure. TMHE willcontinue to undertake
business activities
and provide products
and services in asustainability-conscious
manner.
* An international organization that
evaluates the sustainability ofsupply chain companies

Members of the Production Engineering Departmentin the Vehicle Division67