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

Corporate Governance

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

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

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

Shareholders’ Meetings
Selection/Dismissal

Selection/Dismissal

Reporting

Cooperation

Independent Auditors

Reporting

Audit & Supervisory Board
ReportingAccounting
Audit

Selection/Dismissal

Executive Compensation
Committee

Board of Directors

Exchange of Opinions
Appointment/
Monitoring

Executive Appointment
Committee

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

Discussion/
ReportingMonitoring

Selection/Dismissal
Cooperation

Management Council

Direction/
Supervision

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

Monitoring

Cooperation*1: Functional
Meetings

President

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

Link tothe report

Reporting
Audit Dept.

(Reports on and confirms execution of business operations)

Human Resources

CSR

Quality

Environmental

Production

Export Transaction
Controls

Procurement

Safety and HealthTechnologies

Profit Improvement

Internal Audit

Functional Meetings*1, Committees*2
Senior Executive Officers

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

These entities deliberate andfollow up on issues in respective areas.

(As of June 10, 2021)

39

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Corporate Governance

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

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

Toyota Industries Report 2021

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

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

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

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

About

40%

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

Monthly salaries(fixed compensation)

About

60%

Compensation for Directors and Audit & Supervisory Board
Members
Executive
category

Director(Of which, outside director)

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

Total

Total
compensation

Monthlysalaries

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

546
(52)

346
(36)

200
(16)

No. ofapplicable
executives

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

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

No. of meetings
held per year

Average attendance rate

Board of Directors

1098%(Directors and audit &supervisory board members)

Executive Compensation
Committee

1100%(All committee members)

Executive Appointment
Committee

1100%(All committee members)

Audit & Supervisory Board

12

100%
(Audit & supervisory board
members)

10
(3)

106
(27)

106
(27)

—
(—)

5
(2)

653

453

200

15

Notes:
1. T he figures include one director and one audit & supervisory board member who resigned
at the closing of the 142nd General Shareholders’ Meeting held on June 9, 2020.
2. B
 onuses show the amounts approved by resolution of the 143rd General Shareholders’Meeting held on June 10, 2021.

41

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

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

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

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

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

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

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

Annual financial report

42

Toyota Industries Report 2021

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

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

Internal Control Audit Report

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

CSR Material Issuen Number of serious compliance violations in the Toyota
Industries Group: 0

Example Topics of e-Learning Materials
Internal Control Report

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

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

Audit on internal controls by independent auditors

Compliance
Basic Perspective
We believe that compliance means both adhering to laws andregulations as well as ethics and social norms. As such, it isPerceptions Index in accordance with their respective,
applicable laws) and been conducting activities to familiarize
employees with them in each country and region.

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

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

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

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

Compliance Officer Conference in China

43

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

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

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

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

Toyota Material Handling India Pvt. Ltd.

Implementation Structure

Pragya Sharma

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

Vanderlande Industries Holding B.V.
Carl Messemaeckers

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

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

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

Basic Policies for Information Security

India

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

Organization for Promoting Compliance and Information Security under the CSR Committee

Information Security Managementn Information Security Monitoring and Incident Response
To ensure the early detection of and prompt action against
cyberattacks, we have in place systems to monitor the
security of PCs and all other terminals used within the Toyota
Industries Group and to respond to incidents 24 hours aday, 7 days a week. Upon the occurrence of an incident, we
immediately report it to the president and senior management
and share relevant information within Toyota Industries.
We also share threat information with our consolidated
subsidiaries in and outside Japan to swiftly alert eachcompany.
CSR Material Issuen Number of serious incidents occurred: 0n Providing Education on Information Security
We believe that awareness among all executives,
employees and contract employees is crucial in preventing
information security incidents. Based on this belief, we
provide training on targeted attacks via e-mail and afteraction education more than four times a year per person.
We also send periodic reminders internally using incidents
that have occurred elsewhere as examples.
n Preventing Leakage of Confidential Information
We strive to raise the level of information security byholding workplace meetings and conducting self-checks
regarding our information security practices. In termsof technological measures, we implement a multi-layer
defense that includes encrypting PCs, restricting andmonitoring the copying of files on recording media andPrimary Activity Examples
Activities in fiscal 2021

CSR Committee
Activity reports

Compliance Subcommittee (in charge of compliance)

Approval and instruction

Information Security Subcommittee (in charge of information security)

Europe, North America and China
Regional headquarters
Toyota Industries
Corporation

Consolidated subsidiaries
in Japan

Consolidated subsidiaries
outside Japan
Consolidated subsidiaries outside Japan

44

Toyota Industries Report 2021

• Enhancing security services for consolidated subsidiaries in andoutside Japan• Facilitating tools (measures) to support actions against leakage ofconfidential information• Publishing information security newsletters• More advanced e-mail security training (targeted attacks via e-mailon specific departments and after-action education; four times ayear/person)• Performing a more stringent check on information devices brought
into the plant premises from outside• Providing information security education to on-site plant workers• Providing incident response training• Reinforcing a system of collaboration with consolidated subsidiaries
and with dealers in and outside Japan• Operating a system on a trial basis that automatically detects
unauthorized removal of information off the premises

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

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

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

45

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Corporate Governance

Messages from Outside Directors

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

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

Plant Response
Headquarters
Kariya Plant

Key Facility

e-Lab(information
systems
headquarters)

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

Remote Sites
Tokyo Office

Educational Sites

Company
dormitories
Company resort
facilities

Affiliated Companies

Suppliers

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

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

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

Toyota Industries Report 2021

Aggregating information within the Company

prevent COVID-19. Instead, we conducted training byfunction, such as aggregating information within Toyota
Industries. As an effort to reinforce our disaster prevention
structure, we also conducted a drill for plant security
staff to use IT tools to distribute information, assuming anighttime earthquake.
n 2. Initial Response Training at Plant Response
Headquarters
In fiscal 2021, as with the Disaster Prevention Response
Headquarters, we avoided large-group training as
much as possible and conducted training for the Plant
Response Headquarters in small groups and by role
to confirm the action of each member. Specifically, themembers aggregated damage information and distributed
information using a simple wireless device. By conducting
training repeatedly, we intend to create a structure underwhich every member understands his or her role andresponds to the situation flexibly.
n 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.
n 4. Training for Identifying Disaster Damage
We repeatedly conduct drills jointly with our affiliatedcompanies and business partners in order to familiarize
them with the use of IT tools to quickly identify the damage
status during a disaster.

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

(As of March 31, 2021)

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

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

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

47

Company Introduction

Relationship with
Our Stakeholders

Relationship with Our Customers

P. 48–49

Relationship with Our Business Partners

P. 50-51

Relationship with Our Shareholders and Investors

P. 52–57

Relationship with Our Local Communities

P. 58–59

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

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

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

Quality Assurance Activities Based on the Quality Guidelines
Checking and identifying issues ofCompany-wide quality status and progressin implementing the guidelines

Head of the Production
Heads of
Headquarters
business divisions

Company-wide Council of Heads of
Quality Assurance Departments

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

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

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

Manufacturing capabilities

Toyota Industries strives to maintain and improve thetotal quality of our corporate activities, which encompasses
not only “product quality” but also “marketing quality” and“management quality.” “Product quality” is embodied in
the safety, eco-friendliness, durability, ease of use andworkmanship of our products, while “marketing quality”
entails excellent sales and service in addition to these
attributes and “management quality” further enhances ouroverall corporate image and brand strength in terms of all ofthese attributes.

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

Toyota Industries Report 2021

Quality Vision
Quality Roadmap

A
CP

PDCA*2cycle

Quality Guidelines

D

Quality assurance activities atall bases in and outside Japan

Types of Quality Sought by Toyota Industries

Quality levels that
customers truly
expectImplementing
Company-wide
guidelines

President
Quality Functional Meeting

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

Quality Guideline 3
Quality assurance atbusiness partners

Corporate Information

Relationship with Our Stakeholders

factors integral to risk assessment, namely, the likelihood of an
occurrence of a hazard and severity of damage caused by it.
CSR Material Issue

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

Quality Vision

Promotion of ESG Initiatives

P. 51

Relationship with Our Associates

Relationship with Our Customers

Basic Perspective on Quality

Strategies and Businesses

Quality Guideline 4
Human resources/
workplace developmentn Rate of performing risk assessment on applicableproducts (non-consolidated): 100%

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

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

Providing Support to Business Partners

Toyota Industries undertakes product development thatmeets customer expectations by capturing market needs
and understanding how our products are actually used bycustomers.
At Toyota Industries, development of a new productentails defining specific goals to incorporate quality in every
stage from product planning and design to production
preparation, production, sales and after-sales services. We
perform a design review (DR), which allows a product toproceed to the next stage only when a responsible businessdivision head examines and approves whether the producthas reached the target quality level.
Additionally, we are proactive in obtaining ISO 9001
certification, an international standard for quality management
systems, and IATF 16949, an international standard forautomotive quality management systems, throughout ourbusinesses.
n ISO 9001 certification:
Acquired by 20 out of the 24 production subsidiaries

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.

(as of July 2020)

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

1. Quality Audit

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

2. Nurturing Internal Auditors

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

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

1. QC Circle Activities

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

2. Nurturing Human Resources Who Can Take a
Scientific Approach

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

TICO SQC Convention (held online)

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

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

49

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

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

Major Initiatives

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

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

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

50

Toyota Industries Report 2021

Environmentally Preferable
Purchasing Guidelines

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

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

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

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

Participants of Subcontracting Law-Related Seminars
Toyota Industries(Persons)

Affiliated companies

1,200
1,000
800
600
400
200
0

(FY)

17

18

19

20

21

Procurement Risk Management
1. CSR-Related Efforts in the Supply Chain
Once a year, we distribute to our business partners the
CSR Guidelines for Business Partners, which describe ourrequirements related to CSR activities, and ask them toperform a self-inspection using a checklist. By doing so,
we are striving to maintain soundtransactions and augment a related
structure throughout the supply
chain.

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

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

CSR Material Issuen Rate of performing a CSR
check on applicable suppliers(non-consolidated): 100%
Link tothe guidelines
Toyota Industries’ CSR Guidelines for
Business Partners are available on its
Website (in Japanese).

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

Returning Profits to Shareholders
Toyota Industries regards ensuring shareholder benefits
as one of the most important management policies.
Accordingly, we strive to continue paying dividends at theconsolidated dividend payout ratio of roughly 30% and meetthe expectations of shareholders upon comprehensively
taking into consideration such factors as business results anddemand for funds.
For fiscal 2021, Toyota Industries decreased annual cash
dividends by ¥10.0 from the previous fiscal year and paid
annual cash dividends per share of ¥150.0 (interim cash
dividend per share of ¥70.0 and year-end cash dividend pershare of ¥80.0).

CSR Guidelines for
Business Partners
142nd General Shareholders’ Meeting

51

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

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

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

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

Interview between a supervisor andsubordinate

52

Toyota Industries Report 2021

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

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

Senior staff(SS)

Middle staff(MS)

Production associates

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

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

Training for newly promoted SXManagers

Chief experts(CX)

2. Promoting Active Roles of Female Associates
CSR Material Issue

We aspire to let individual associates to thrive in theirassigned work and role regardless of gender. Accordingly,
we have augmented our efforts to promote greater roles offemale associates.
In 2015, we set up a project to promote more activeroles for female associates in office work and engineeringAction Plan for More Active Roles for Female Associates
Implementation
FY2016 – FY2022(1) Launch, message from president(2) Awareness seminar for managerial staff
Changing
mindsets(3) Follow-up on individual development plansamongmanagerial(4) Getting spouses involved in pre-maternity
staff and acrossleave seminars
all associates(5) Lectures by male role models(Ongoing)(6) Promoting further engagement of maleassociates in childcare(1) Sending associates overseas for training at
an early stage in their careers(Ongoing)(2) Career training and interviews for female
assistant managers
Career support(3) Role model exchange meetings
for female
associates(4) Early return-to-work support (pre-maternity
leave seminars)(5) Early return-to-work support (financial aid
system for day care costs)(1) Expanding work-at-home options
Promotingflexible working (2) Establishing satellite offices
practices(3) Installing refrigerated delivery lockers
Promoting more (1) Launch
active roles of(2) Seminar for supervisors on nurturing
femalefemale subordinates
production
associates(3) Work style seminar for female associates

Phase 1

Senior experts(SX)

Experts (EX)Phase 2Phase 3

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

Undertaking initiatives to promote even greater roles

2002 —

2015 —

2008 —

2019 —

Training for newly promoted EX

Junior staff(JS)
TICO Business Practices
training I

Production associate training III
Production associate training II

Clerical staff(CS)

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

Induction training

Generalassociates

Induction training

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

Promoting active roles

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

Human Resources Development

Supporting
work-life balance

Basic Concept of Human Resources
Management and Labor Management

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

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

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

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

53

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

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

3. Employment of Persons with Disabilities

TOPIC

We respect the idea of people with and without disabilities
working together and sharing life and work values. Under thisbasic policy, we continue to employ persons with disabilities
every year. They are assigned to a variety of sections andwork with other members to perform their designated tasks.

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

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

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

Toyota Industries Report 2021

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

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

CSR Material Issue

Work style seminar for female production associates

54

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

(%)
2.5

Ratio of associates with disabilities

2.4
2.3

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

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

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

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

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

2.2

Improvement Flow of Safety and Health Activities

2.1

Legally mandated ratio

2.00(FY) 17

18

19

Continuous
improvement

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

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

Review by

A management
Inspection andC corrective measures

Occupational Safety
and Health Policies

P

Plans
Execution and

D operation

Safety Vision

Process improvement using
the work posture analysis system

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

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

55

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

Education to foster a safety culture
Safety workshops, education to improve an ability to
predict hazards, education to actually experience hazards(safety dojo), etc.

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

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

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

Manufacturing industry

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

TOPIC

Walking events

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

Included in White 500 for Four Consecutive
Years

Early detection

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

0.80

Manufacturers of transportation machinery and equipment

Efforts against Serious Accidents
CSR Material Issue

In 2019, a serious accident occurred at a Toyota Industries
plant during the product quality assurance process due tothe defective structure of equipment. We subsequently madeefforts to identify deficiencies and undertaken measures
to prevent recurrence. In fiscal 2021, we continued toconcentrate on the implementation of physical measures.
As an example, in May 2020 we introduced a mechanism toalways cut off power when an operator accesses a machine
while disabling its safety device.
In addition, we have built a system to definitively prevent
serious accidents when installing or retrofitting equipment,
which includes visualization of stop control and safety feature(FY) 17

18

19

20

21

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

Major Health-Related Initiatives
As a task for the medium term, we are promoting healthimprovement of associates, mainly focusing on preventionof lifestyle diseases and mental health support activities, tocounter risks of health problems associated with aging andgreater stress. Through these efforts, we help associates towork and take active roles over the long term.

Improving Mental Health Support Systems(Introduced a Stress Check System in Fiscal 2017)

Objective

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

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

Major Activity Indicators
Activity indicator

FY2019FY2020

FY2021

Participants of age-based
health education*

2,470
persons

2,357
persons—

Rate of undergoing a stress
check

99%

99%

99%

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

Workplaces

Individuals

Mental health education

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

Good

0.00

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

Safety and Health Activities for Business Partners

Mental Health Support

Preventive measures

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

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

Stop smoking
awareness event

1.20

Toyota Industries

Toyota Industries Report 2021

Major Health Promotion Activities in Fiscal 2021

1.60

0.40

56

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

Early detection/early resolution

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

disorders, Toyota Industries proactively provides safety andhealth education, including education designed to fostera safety culture, education required by law, rank-based
education and job-category-based education.

Providing information on mental healthResponse to COVID-19

Improving support via the introductionof a stress check system

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

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

Providinginformation oninternal andexternal
health-related
hotlines

Understanding thecauses of stress inthe workplace andimproving working
environments

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

Walking event

57

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

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

Basic Perspective

Activity Examples of the Toyota Industries Group
Link to social
contribution
activities

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

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

SocialwelfareSocial welfare

In view of the global spread of COVID-19, Toyota Industries and its Group companies across the world have been conducting
social contribution activities corresponding to the needs of each region where we do business.

Communicating with Local Communities

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

Worldwide Supporting Measures against COVID-19

Activities
Events to interact with persons with disabilities*2• “Walk Rally (orienteering),” harvest festival, festival
Support for welfare facilities• Support for charity bazaars at facilities by providing goods• Volunteer work for facility cleanup/repair/pruning/weeding• Support for sales of products from facilities for persons withdisabilities by providing opportunities to set up stalls• Volunteer listening activities at elderly care facilities*2
Supporting measures against COVID-19 (worldwide) (P. 59)• Manufacturing and donating face shields• Donating protective equipment tomedical facilities, local governments andother organizations• Lending and donating trucks and othertransportation equipment• Donating food
• Making monetary donations to NPOs
and various funds

Manufacturing anddonating face shields

U.S.A. Holding Manufacturing Day Event Online

The Raymond Corporation

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

Initiatives for forest conservation• Tree-thinning activities for conservation of prefecture-owned
forests
Environmental • Producing and donating benches that made effective use ofthinned wood
protection
Providing “Aim for the 21st Century-Style Monozukuri”
environmental education program for elementary school
students (P. 59)
Participation in local traditional event (Mando Festival)*2
Road cleanup activities in areas around plants
Community
Activities to raise awareness for traffic safetycontribution
Crime prevention patrols
Drill on feeding power to an evacuation shelter (P. 59)

Other

*1: V
 oluntary organizations formed by
employees at each job level

Company-wide cleanup activity

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

Youth development

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

Environmental protection

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

Support for Youth Invention Clubs*2• Monozukuri workshops for elementary school children during
summer vacations
Youth• Holding handmade kite-flying competitions• Running craft corners at local events
development
Providing monozukuri lessons at school
Holding Mini Concerts at elementary schools*2
Holding Manufacturing Day event online (U.S.A.) (P. 59)

Donating protective equipment tomedical facilities, local governments
and other organizations

Donating transportation equipment

Experiment to turn wastewater into clean water

Japan Drill on Feeding Power to an Evacuation Shelter

Community contribution

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

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

Japan
11,181 persons
from 31 companies

CSR Material Issue

Americas
2,767 persons
from 25 companies

Number of participants insocial contribution activities*4

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

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

58

Toyota Industries Report 2021

59

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

Environmental Initiatives

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

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

Global Environmental Commitment(Environmental Policies)
As one tenet under our Basic Philosophy, Toyota Industries
works to contribute to regional living conditions and social
prosperity and also strives to offer products and services thatare clean, safe and of high quality. Accordingly, in February
2011, we established the Global Environmental Commitment,a specific environmental action guideline, to be shared andimplemented throughout the Toyota Industries Group.
Our four main action themes are establishing a carbon
neutral society; establishing a recycling-based society;reducing environmental risk and establishing a society
in harmony with nature; and promoting environmental
management, with the first three founded on the latter. Basedon these pillars of action, the entire Toyota Industries Groupwill dedicate concerted efforts to realizing a prosperous life inharmony with the natural environment.
Link todetails

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

Environmental
risk reduction
Society inharmony withnatureCarbon neutral
society

Recyclingbasedsociety

Environmental Management

Notional Diagram of Global Environmental Commitment

Environmental Vision 2050
(1) Establishing a carbon neutral society➡ Globally take on challenge of establishing a zero CO2emissions society(2) Establishing a recycling-based society➡ Take on challenge of minimizing the use of resources(3)	Reducing environmental risk and establishing asociety in harmony with nature➡ Generate positive influence on biodiversity(4) Promoting environmental management➡ Enhance consolidated environmental management andpromote enlightenment activities

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

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

60

Toyota Industries Report 2021

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

Corporate Information

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

Promotion of Environmental Management
SystemToyota Industries has positioned environmental initiatives as
one of its most crucial management issues. To quickly reflect
top management’s decisions on business operations, Toyota
Industries has established and been operating a Companywide integrated environmental management system (EMS),
with the president at the top.
As in the previous fiscal year, in fiscal 2021 we conducted
introductory educational courses to foster the knowledge
needed for environmental management and an introductory
educational course for environmental audits to cultivate
knowledge and techniques of internal audits. As department
heads and other personnel in managerial positions
proactively attended these courses, we were able to promote
the enhancement of environmental management and thedevelopment of internal auditors.
Environmental Management Structure
Organizations

Committees
President

Environmental Committee

Internal audit

Specialized committees

Responsible
internal auditor

Product Environment
Subcommittee•Team leader•Supervisingauditors

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

Admin office*A n international NGO running a project in which institutional investors work together andrequest companies around the world to disclose their strategies against climate change
and greenhouse gas emissions data

Formulation of the Seventh Environmental Action
Plan

Promotion of ESG Initiatives
Environmental Initiatives

Head Office

Divisions

Corporate Planning

Materials Handling
Equipment

R&D
Purchasing

Environmental Vision 2050 and Environmental
Action Plans

Strategies and Businesses

Division-Based
Promotion Committees

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

VehicleEngineAcquisition of ISO Certification

Quality Assurance
Human Resources
General Administration

Compressor
Electronics
Textile Machinery

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

In order to facilitate environmental initiatives in a more
efficient and organized manner, Toyota Industries has
acquired ISO 14001 certification, the international standard
for environmental management systems. Please visit our
website for Toyota Industries bases that have obtained thecertification.
Link todetails61

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

n Product Related

Summary of the Sixth Environmental Action Plan

Sixth Environmental Action Plan Targets

We have achieved all targets laid out in the action plan covering the period from fiscal 2017 to fiscal 2021.

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

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

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

FY2021 Achievements

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

Subject

CO2
emissions

ScopeControl Items

Base Year(FY)

Nonconsolidated

Total
emissions2006

Emissionvolume perunit of
Non1
consolidated production*

2006

Emissionvolume perunit ofproduction

2007

GlobalCO2
Nonemissions
from logistics consolidated

FY2021 Targets
Achievements

Targets

–16%

–10%

–29%

–26%

–32%

–30%

–33%

–28%

Action Policies

Promote measures against resource depletionby recycling waste•Reduce the volume of discarded materials by taking action
at the source, such as improving yields and other measures•Promote internal reuse
Promote effective resource utilization in
production activities•Reduce use of packaging materials•Monitor water input and output in each country/region
and develop and promote appropriate measures

FY2021 Achievements
Subject

Scope

Japan
consolidated
Waste
volumeNonconsolidated

Control Items

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 new engine•Developed new AC inverter•Promoted use of recycled materials

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

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

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

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

–45%
Waste
volume perunit ofproduction

–27%

2006

–45%

–29%

Action Policies/Specific Actions

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

FY2021 Achievements
Subject

Scope

Control Items

VOC*2

Nonconsolidated(automobile
body)

Emissionvolume perunit ofproduction

emissions62

Toyota Industries Report 2021

Augment and promoteconsolidated environmental
management•Build a global environmental management system and promote
related activities to:Comply with environment-related laws in each country and region
Formulate a medium-term plan based on visualization ofenvironmental risks and conduct activities to prevent risks fromoccurring
Enhance risk communication with relevant organizations andlocal residents
Achieve the highest-level environmental performance in eachcountry and region•Enforce strategic environmental management that integrates
environmental activities and business activities•Promoted mitigation activities•Underwent legal compliance audit onenvironment-related laws at a site in China

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

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

Improve eco-conscious brand
image

Reducing Environmental Risk and Establishing a Society in Harmony with Nature
FY2021 Targets

Base Year(FY)

Achievements

Targets

2006–36%(24g/m2)–36%(24g/m2)

FY2021 Achievements

Augment activities related toprotection of biodiversity

Targets

Promoting
Environmental
Management

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

FY2021 Targets
Achievements

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

Establishing a
Carbon Neutral
Society

Establishing a Recycling-Based Society
Action Policies/Specific Actions

Specific 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•Participated in All Toyota Green Wave Project•Conducted biodiversity conservation activities
within Toyota Industries premises*1: We manage emissions in each business by using either unit of production or unit of sales as a basic unit of emissions. The weighted average ofreduction rates of all businesses is used as our management index.
*2: Volatile Organic Compounds*3: Substances of Very High Concern

Link to theaction plan

63

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

n Product Related

Seventh Environmental Action Plan

Seventh Environmental Action Plan Targets

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

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

Action Policies

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

Establishing a Carbon Neutral Society

Scope

Control Items

Base Year (FY)

Reduce CO2 emissions through product andtechnology development

Implement initiatives to promote 3R (reduce, reuse
and recycle) design for effective resource utilization•Reduce use of resources through longer product life
•Reduce use of resources through standardization, modularization and reduction of components•Reduce use of resources through development of technologies to enable weight reduction
and downsizing•Promote reuse and recycling of components and resources

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

Manage chemical substances contained in products•Investigate chemical substances contained in products and manage switching overof SVHC*3 and other substances of concern to other substancesn Others

Seventh Environmental Action Plan
Subject

Establishinga Recycling-BasedSociety

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Naturen Production Related

Action Policies/Specific Actions

Establishing a
Carbon Neutral
Society

Seventh Environmental Action Plan Targets

Targets

Action Policies

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

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

CO2
emissionsGlobalTotal emissions

2014–25%*1

RenewableenergyGlobalIntroduction rate

—

15%

CO2
emissionsfrom logistics

Non-consolidated

Emission volume
per unit ofproduction*2

2014

–11%

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

Establishing a Recycling-Based Society
Action Policies/Specific Actions

Seventh Environmental Action Plan
Subject

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

Waste
volumeScope

Non-consolidated

Control Items

Waste volume
per unit ofproduction

Base Year (FY)2014

Specific Actions•Develop technologies that contribute to an even greater level of energy efficiency•Develop products and technologies that respond to electrification•Develop technologies to enable weight reduction•Reduce energy loss
•Develop technologies for the realization of a hydrogen-based society

Targets

Further reduce emissions of substances ofconcern from production activities

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

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

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

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

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

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

Promoting
Environmental
Management–12%*1: As a more ambitious target, we are aiming for a 50% reduction by fiscal 2031 from the fiscal 2014 level.
*2: We manage emissions in each business by using either unit of production or unit of sales as a basic unit of emissions. The weighted average ofreduction rates of all businesses is used as our management index.
*3: Substances of Very High Concern*4: Volatile Organic Compounds

64

Toyota Industries Report 2021

Link to theaction plan

65

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

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

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

Progress in Efforts to Establish a Carbon Neutral
Society

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

16
29% reduction (vs FY06 level)

FY21 target:

10% reduction(vs FY06 level)

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

FY21 target:

26% reduction(vs FY06 level)

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

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

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

Portion heatedWith a view to establishing a recycling-based society, we have been striving to reduce waste and the usage ofwater and other resources.

CSR Material Issue

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

Progress in Efforts to Establish a RecyclingBased Society

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

45% reduction (vs FY06 level)% reduction (vs FY06 level)

Consolidating

Toyota Industries Report 2021

Establishing a Recycling-Based Society

45

Beforeimprovement

66

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

FY21 target:

29% reduction(vs FY06 level)

production compared with the fiscal 2006 level by 29% on
a non-consolidated basis and by 27% for Toyota Industries
and its consolidated subsidiaries in Japan. Both targets wereachieved successfully.
Case
ExampleInstalling a Sensor to Control the Amount of Agent Added

Local
heating

Before improvement(Adding a fixed amount)

FY21 target:

27% reduction(vs FY06 level)

Initiative to Reduce Sludge Volume

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

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

Heating processes

After improvement

 fforts of an Overseas Base towardE
Realizing a Zero CO2 Emissions Society

After improvement

Turbidity

Case
ExampleCSR Material Issue

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

Amount of agent added

Establishing a Carbon Neutral Society

Time

67

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

Case
ExampleEfforts for Reducing the Use of Plastics

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

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

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

CSR Material Issue

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

68

Toyota Industries Report 2021

Initiative for Raising Awareness of Water
Resources

Initiative for Reducing Wastewater
Discharge through Water Recycling

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

Ultraviolet treatment
equipment

Purified water back to
the painting process

Wastewatertank

FilterDistillationequipment

Carbon filter

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

CSR Material Issue

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

Case
Example reating an Animal Path to ImproveC
Natural Habitats of Living Organisms

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

Case
Example ases in China Conducting a Unified
B
Activity toward a Society in Harmony
with Nature

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

Cleanup Day (TACK)CSR Material Issue

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

Fox pups using the animal path69

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

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

FY21 target:

36% reduction(vs FY06 level)

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

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

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

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

Toyota Industries Report 2021

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

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

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

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

External Environmental Awards

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

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

Control Department

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

Environmental Impact Flow

at a base in Chinan Energy [consolidated]

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

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

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

Energy consumption

15,938 TJ*2

Electricity

1,355,962 MWh

City gas

83,037 km3N

LPG

3,882 tPetroleum products

3,141 kl

Coal products

5,968 t

LNG

1,570 tn Raw Materials [consolidated]
Raw material consumption

730,270 t

n Water [consolidated]
Water withdrawal

External Environmental Evaluationsn Chemical Substances[non-consolidated]Toyota Industries fosters environmental communication with our
stakeholders through proactive disclosure of environmental
information. We have been participating in the Ministry of theEnvironment’s project for the establishment of a framework

PRTR law*3 designated substances

4,548 km3

1,002 tEnvironmental
Impact Flown Into the Air [consolidated]
CO2 emissions

R&D/Design

Production
Transportation/
Sales
Usage
Recovery/
Recycling

824,841 t-CO2

Greenhouse gases other than CO22,400 t-CO2

CO2 emissions from logistics

14,904 t-CO2

SOx (Sulfur oxides)
NOx (Nitrogen oxides)

Procurement

OUTPUT

Summary VOC Emissions (Production Activities)

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

INPUT

Progress in Efforts (Substances of Concern)

VOC (Volatile organic compounds)

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

355 t

108,670 t

n Into Waterways (consolidated)
Water pollutants

27 t

Discharge of treated wastewater

2,252 km3

*2: Terajoule is a unit used to measure heat. 1 TJ = 1012 joules*3: Short for Pollutant Release and Transfer Register, the PRTR law is a scheme whereby businesses measure the release and transfer of PRTR designated pollutants and report theirperformance to the government. The government then compiles this data and releases it to the public.

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