About Toyoda Gosei

Value Creation Story

Value Creation Strategy

Environmental Organization
Our medium- to long-term policy and key action items
are discussed and decided in a Carbon Neutrality andEnvironmental Committee chaired by the company
president. The Carbon Neutrality and Environmental
Committee consists of three subcommittees in theareas of products, production, and quality. In the areaof production, a Production and Environment
Subgroup has been established to strengthen
environmental initiatives over the entire manufacturing
process. The above subcommittees are further broken
down into working groups that implement and manage

Foundation of Value Creation

Data

areas such as reductions in energy use and waste
products, and preservation of the environment. In thisway, environmental preservation and management
activities are conducted from an expert perspective.
Also, liaison meetings have been established as aforum for information sharing with domestic andoverseas Group companies. A carbon neutrality
project was started in FY2021 to accelerate efforts
over the entire product lifecycle. The project is headedby the president with outside directors as advisers andthe general managers of related divisions as members.

Environmental Organizational Structure
Carbon Neutrality
and Environmental
Committee*

CarbonNeutrality
Project

Products(meets twice/year)(Chairperson: Company president)
Discussion of mattersrequiring medium- tolong-term management
decisions

Formulation of mediumto long-term targets anddiscussion of measuresand issues to achievethem

Production andEnvironment Subgroup
Production

Liaison Committee for Environmental
Communication with Domestic
Affiliates (meets twice/year)

Products and Technology Environment
Subcommittee (meets as needed)(meets twice/year)
Discussion of specific measuresand issues to achieve short- tomedium-term goals

Quality AssuranceManages, guides, andsupports coordinatedenvironmental efforts bydomestic affiliates

Implements and manages development of environmentallyfriendly products and technologies

Production Environment Subcommittee(meets twice/year)

Liaison Committee for Environmental
Communication with Overseas
Affiliates (meets once/month)

Implements and manages policies and technical development
measures for reduced emissions from production processes

Subcommittee on Systems for SOC Regulations
and Quality Assurance (meets as needed)

Manages, guides, andsupports coordinatedenvironmental efforts byoverseas affiliates

Develops systems for compliance with SOC regulations
and for quality control* The Carbon Neutrality and Environmental Committee is positioned within the organization as shown in the Corporate Governance System Chart (see p. 71), and the deployment of policies from the Carbon Neutrality and Environmental
Committee, the Production and Environment Subgroup, and the respective subcommittees to plants and other operations is done by establishing expert committees in accordance with the ISO 14001 system at each plant.

Strategy on Carbon Neutrality and Circular Economy
We have established a strategy on carbon neutrality
and circular economy for the entire product lifecycle
and are implementing initiatives for achieving it. We
have set Sustainable Materials, Sustainable Design,
Zero Emission Challenge, and Resource Circulation as
our goals, and have incorporated them into specificcontent from four perspectives, and in this way, we
aim to realize carbon neutrality and a circular economy
and link it to viable businesses.
Materials

We will strive to procure recycled materials for also ensuring
stable supply and expand the use of bio-materials.

DesignWe will strive to develop lightweight designs, easilydisassembled designs, compact designs, and otherimprovements.

Manufacturing In addition to day-to-day improvements, we will also study
the adoption of innovative processes, such as process
downsizing and reduction of heat energy, as well as theuse of hydrogen.

Strategy on Carbon Neutrality and Circular Economy

Sustainable
Materials

Materials
Resource
Circulation

Collectionandrecycling

DesignSustainable
DesignManufacturing

Zero Emission
Challenge

Collection/ We will systematically minimize waste in our plants andrecycling build a system to collect parts from the market.

T OYODA GOSEI REP OR T 20 2355