Relationship with
Our Stakeholders

Corporate Governance

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 tobe followed immediately after the disaster” and “restorationof production.”collect information on damages to both inside and outside
the company premises, swiftly make decisions anddisseminate these decisions throughout Toyota Industries.
We are setting up a system to ensure prompt responseeven during nighttime or on a weekend or holiday by
selecting members from the functional departments who live
close to the Head Office.

Disaster Prevention Response Headquarters (Established in Kariya Plant)

e-Lab (information
systems headquarters)

Remote Sites

Educational Sites

Affiliated Companies

Company dormitories
Company resort
facilities

Suppliers

Adhering to a quality first approach, Toyota Industries practices monozukuri (manufacturing) that quickly responds tothe diverse, ever-changing needs of customers.

Collecting information from external sources

2. Training at Plant Response Headquarters
In fiscal 2019, we focused on practical training by using
predetermined procedures and forms and provided
appropriate training to the head (plant manager) andmembers of each Plant Response Headquarters. By
conducting training repeatedly, we intend to create astructure under which every member understands his or herrole and responds to the situation flexibly.

Efforts to Cultivate Personnel to Engage in Disaster
Prevention Activities
1. Training at Disaster Prevention Response
Headquarters
As one important role assigned to the Disaster Prevention
Response Headquarters that oversees Company-wide
disaster response, we conduct training in which employees

Toyota Industries Report 2019

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.

Types of Quality Sought by Toyota Industries

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

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

Manufacturing capabilities“Every one of us should fulfill the roles
assigned to us and deliver our best
quality products to customers.”
Under our “Customer First” philosophy, Toyota Industries
undertakes product development that meets customer
expectations by capturing market needs and understanding
how our products are actually used by customers.
At Toyota Industries, 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.

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

To achieve the goal of this vision, we issue the Quality
Guidelines, which identify priority quality-related issues tobe implemented in each fiscal year, to all production basesin and outside Japan and engage in quality assurance
activities accordingly. The implementation status of theseguidelines is reviewed by top management at the Quality
Functional Meeting chaired by the head of the Production
Headquarters*1 for identifying additional issues anddevising countermeasures. Issues raised are followed up at
meetings of the Company-wide Council of Heads of Quality
Assurance Departments chaired by the head of the Quality
Control Department*1. The Company-wide Council for
Quality Improvement, also chaired by the head of the Quality
Control Department*1, takes up issues in and addresses the
Quality Assurance Activities Based on the Quality Guidelines
Checking and identifying issues of Company-wide quality
status and progress in implementing the guidelines

Implementing Company-wide
guidelines

Quality Functional Meeting

Company-wide Council ofHeads of Quality
Assurance Departments

Financial Section /Corporate Information

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.
Up until fiscal 2018, our activities had targeted personnel
in charge of promoting disaster prevention and members of
initial response and production restoration teams. The scope
was extended to all employees in fiscal 2019.

3. Training Tailored to the Plant Environmenta) 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		The e-Lab, responsible for managing Toyota Industries’
data servers, has created procedures to restore critical
data after a disaster. We conduct restoration drills
jointly with Toyota Industries IT Solutions, Incorporated,a consolidated subsidiary engaged in development
and operation of information infrastructures andsystems, and work to improve our readiness for quick
restoration.

Carrying on the spirit of founder Sakichi Toyoda, Toyota
Industries strongly believes that quality is the lifebloodof a company. Focusing on quality first and ensuring
customer safety and reassurance are our most important
responsibilities to our customers and form the basis of ourapproach to CSR.
Toyota Industries strives to maintain and improve thetotal quality of our corporate activities, which encompasses
not only “product quality” but also “marketing quality” and“management quality.” “Product quality” is embodied in
the safety, eco-friendliness, durability, ease of use andworkmanship of our products, while “marketing quality”
entails excellent sales and service in addition to these
attributes and “management quality” further enhances ouroverall corporate image and brand strength in terms of all ofthese attributes.

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

Promoting Disaster Prevention at Home andRelated Enlightenment Activities

Confirming initial response actions“A product should never be sold unlessit has been carefully manufactured andfully tested in the commercial trial, withcompletely satisfactory results.”

Promotion of ESG Initiatives

Tokyo Office
Toyota L&F Customer
Center Tokyo
Toyota L&F Customer
Center Osaka
TMHG Training Center(Handa)Analyzing damage information

50

Reviewing policies on resumption ofoperations and how to return home

Strategies and Businesses

Disaster Prevention Structure

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

P51–52
P53
P54
P55–58
P59–60Company Introduction

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 the central general safety and health supervisor
and consisting of representatives from the functional
departments at the Head Office, is responsible for collecting
information from plants and other relevant parties andmaking Company-wide decisions based on the informationcollected.

Key Facility

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

Relationship with Our Customers

Disaster Prevention Structure

Plant Response
Headquarters

Relationship with Our
Stakeholders

Quality Vision
Quality roadmap
Company-wide
Council for Quality
Improvement

A

P

PDCA*2cycle

DQuality Guidelines

C

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

Quality Guideline 2
Prevention of occurrence
and recurrence

Quality Guideline 3
Quality assurance atbusiness partners

Quality Guideline 4
Human resources/
workplace development51

needs of business divisions for discussion and resolution by
all heads of quality assurance departments. In fiscal 2019,the council explored ways to expand the use of quality
control by utilizing the Internet of Things (IoT), big data andartificial intelligence (AI).
*1: As of March 31, 2019*2: PDCA (Plan, Do, Check, Act)

Preventing Occurrence and Recurrenceof Defects

Toyota Industries provides systematic quality education
to all employees to help them acquire quality assurance
skills needed in actual operations. We have been soliciting
creative proposals to nurture human resources who think
and act on their own and create a better workplace throughall-employee kaizen activities, while at the same time
promoting the development of human resources who cantake a scientific approach to quality assurance through52

Toyota Industries Report 2019

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 Basedon Mutual Trust
We work hard to realize co-existence and co-prosperity withour business partners based on mutual trust. Every year,
we hold 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 health education throughout the year.

Reducing Environmental Impact throughEnvironmentally Preferable Purchasing
We aim to procure parts, raw materials andequipment from business partners that give
sufficient consideration to the environment.
In the sixth edition of ourEnvironmentally Preferable Purchasing
Guidelines, we added the aspirationsin 2050 of our Environmental Vision.
Accordingly, we have been strengthening
environmental management in our entire
supply chain and undertaking relevant
initiatives throughout the product lifecycle.

Environmentally
Preferable Purchasing
Guidelines

work with Hoeikai to provide
support to strengthen the
management platforms ofmember companies throughToyota Production System (TPS)
activities in manufacturing and
QC circle activities.

Risk management
Affiliated companies
Hoeikai
Subcontracting Law(Persons)
Toyota Industries
Affiliated companies

1,200
1,000
800
600
400
200
0

(FY)15

16

17

18

19

Realizing Fair Trade throughout theSupply Chain
As part of efforts to realize fair trade throughout the supply
chain, Japan’s Ministry of Economy, Trade and Industry
announced an action plan for proper management of molds
for parts. In response, Toyota Industries has set up a moldmanagement project to examine how we can “reducemolds, revise management and establish new systems” asstipulated in the action plan. In fiscal 2019, we laid down
clear rules for the reduction of molds and shared themwith our business partners. We will continue to undertake
activities to achieve the goals of the action plan.

Business Continuity Plan (BCP) Activities
for Possible Major Earthquake
In further promoting our BCP activities, we are making
concerted efforts with business partners to reduce associatedrisks by implementing specific measures. As one example,
we provided production restoration workshops (tabletop
exercises) again in fiscal 2019 mainly to our affiliatedcompanies and Hoeikai members. These workshops yielded
effective results, as we were able to formulate production
restoration measures corresponding to each site and its
current status against issues identified in advance.
In response to a growing need for quick identificationof damage in disasters other than earthquakes, we will add
wind and flood disasters, fires and explosions to the scopeof our BCP activities.

*3: Using statistical techniques to promote quality control and process improvements

TOPIC
For the last 35 years, we have been holding the SQCConvention to share the best SQC practices in various
stages of our operations, from planning and development
to production
and services.
In 2018,
presentations
started coveringcases utilizing big
data analysis.
Presentation for SQC best practices

Promoting Human Resources
Development

Efficient Procurement through Introductionof a Catalog Purchasing System

We proactively provide education to enhance procurement
knowledge both internally and externally. In fiscal 2019,
along with education on Japan’s Subcontracting Law, we
provided training on risk management by using subjects
closely related to business partners’ daily operations. They
included response to labor issues, appropriate sale ofwaste and response to the revisions to Japan’s Dispatched
Worker Act. These seminars were attended by some 300
participants from affiliated companies and Hoeikai, anorganization consisting of our business partners. We also

Toyota Industries introduced “e-TAPS,” a catalog system tomainly purchase secondary materials used within a plant, andafter deploying the system to business partners, initiated its
operation in May 2019. All products of our existing business
partners are evaluated in advance and cataloged on thesystem, thereby eliminating the previously required process ofrequesting a quotation for each purchase. This has enabledboth our business partners and Toyota Industries to shorten
the lead time for order placement and reduce the number ofadministrative processes.

Financial Section /Corporate Information

Promoting Human Resources andWorkplace Development

Our production bases outside Japan also promotekaizen efforts and human resources development throughQC circle activities. We help them undertake activities
corresponding to their respective environments by training
QC circle instructors and visiting them to give hands-on
instructions for promoting QC circle activities. As a venue
for presenting activity results, we hold the Global QC Circle
Convention every year since 2015 and provide workshop
sessions to raise skills.
As for nurturing human resources who can take ascientific approach, we encourage both the cultivation ofknowledge and practical use of the learned knowledge. As
specific examples, we hold presentations for sharing bestpractices of each business division and promoting mutual
improvement. We have also set up a structure to help
encourage the use of SQC and big data analysis.
As described above, to reinforce our foundation for
quality assurance, we are promoting the development of
human resources and an open workplace based on the
belief that manufacturing starts with nurturing excellent
personnel.

Fair and Equitable Business Transactions
Based on an Open Door Policy

Participants of PurchasingRelated Seminars

Promotion of ESG Initiatives

Since improving the quality of our products requires
concerted efforts with our business partners in and outside
Japan, we are strengthening joint quality assurance activities
with major business partners.
In each annual quality audit, we determine priority
areas, conduct genchi genbutsu (go and see for yourself)
inspections to confirm the improvement status of thepreviously identified deficiencies and provide quality
education on items that should be reinforced in order tocultivate a deeper understanding of kaizen (improvement).
In fiscal 2019, we continued to hold quality control
training sessions for the genchi genbutsu sharing of bestpractices of quality control activities as part of efforts toattain mutual improvement of each business partner’s quality
control personnel. We also started educating and nurturing
next-generation leaders in this area.
These activities enable our business partners to attainthe level of quality assurance required and establish aculture to foster quality assurance on their own.

The Commendation for Science and Technology by
Japan’s Minister of Education, Culture, Sports, Scienceand Technology is a prestigious award given to persons
who have contributed to technology improvements
through excellent creative ideas. Toyota Industries
has received the award for 34 consecutive years. Our
efforts to encourage
creative ideas among
employees havecontributed to thedevelopment of
human resources
who constantly seek
Commendation for Science and Technology
improvements.
presentation ceremony

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

Strategies and Businesses

Providing Support to Business Partners

TOPIC

Relationship with Our Business Partners

Company Introduction

If a defect is found in a product after its launch, the Quality
Assurance Department of the responsible business division
takes the lead in examining and identifying the cause bygoing back to its development, design and production
processes. We implement countermeasures both from theprocess and technological aspects and revise our new
product development process as necessary. Through thesemeasures, we strive to thoroughly avoid the recurrence ofthe defect in subsequent models.
Additionally, we make efforts to prevent the occurrenceof defects in all products we develop and manufacture in the
future. As an example, we provide education to production
bases in and outside Japan with an eye to preventing
defects by improving work procedures and processes.

quality control (QC) circle activities and by using statisticalquality control (SQC)*3 techniques and big data analysis.
To date, we have received 12 awards for employees’
creative ideas in the Creativity category in the Commendationfor Science and Technology by Japan’s Minister of Education,
Culture, Sports, Science and Technology. We have alsopresented the results of our QC circle activities at QC circle
conventions both internally and externally and received
multiple awards for our accomplishments.

Relationship with
Our Stakeholders

53

Basic Perspective

Building a Safety-Oriented Culture That
Aims for Zero Industrial Accidents

Measures to Prevent Explosions Caused
by Combustible Gas

In accordance with our fundamental policy of “creating people
capable of autonomously maintaining occupational safety
and health,” Toyota Industries strives to prevent industrial
accidents and occupational disorders as well as realize better
work environments by making equipment more immune toaccidents or disorders as early as in their design stage.
In fiscal 2019, we continued to promote primarily“activities aimed at establishing a safety-oriented culture”
and “safety and health measures from human, object andadministrative standpoints based on risk assessment.”
In establishing a safety culture, we believe it is vitalthat all associates, under the leadership of managers andsupervisors, engage in relevant activities with strong safety
awareness and a conviction that we can eliminate industrial
accidents. We have accordingly expanded the target groupof rank-based safety workshops. We also seek to nurturea mutual enlightenment-based safety culture, in which we
encourage workers to exercise point-and-call practices andremind those persons showing unsafe behavior to instillbasic safety procedures.
As for risk assessment, we aim to ensure the safety andsecurity of the workplace and reduce risks by investigating
and visualizing latent hazard sources within the workplace.
As the investigation of risks requires information on past
accidents and potentially serious near-accidents, we break
down and organize such information into smaller stagesof accident occurrence and disseminate it to improve thequality of risk assessment in each workplace.
In fiscal 2019, we experienced such unprecedented
accidents as injuries caused by inappropriate handling of oldequipment, to which we have made alterations to improve its
usability but have not notified sufficiently of such alterations,and other cases of injuries caused by a change in theplacement of goods, which went unnoticed. As a result, werecorded the frequency rate of lost workday injuries of 0.22.
We will step up our efforts more closely matched to each
workplace based on the characteristics of the recent accidents.

We have implemented basic countermeasures following
industrial accidents at other companies in 2016, which
involved an explosion in a heating furnace that uses
combustible gas. In fiscal 2019, we tackled a remaining issueof detecting incomplete combustion in a high-temperature
furnace. In collaboration with a gas detector manufacturer, we
examined the most effective combination of a detector andcooling equipment and other devices. After repeated testing,
we successfully improved the detection accuracy and cameup with a gas concentration detection system with excellent
maintainability. In the future, we will include this system asa standard feature when introducing a new furnace andpromote its use for existing furnaces. We have introduced it
at some of our bases outside Japan and plan to eventually
make this system a global standard feature. Upon installation,
we carry out genchi genbutsu activities to share technologies
with local employees and mutually work to improve thesystem’s management method.

General Shareholders’ Meeting
We hold our annual general shareholders’ meeting
early to avoid the date on which many companies holdtheir respective shareholders’ meetings so that moreshareholders can attend. We are further facilitating theexercise of voting rights of our shareholders by allowing
them to exercise such rights via the Internet and by joining
the electronic voting platform for institutional investors.
We held our 140th General Shareholders’ Meeting on
June 12, 2018, in which 440 shareholders participated.
Following the general shareholders’ meeting, we invited
our shareholders for a tour of a plant that manufactures ourmainstay lift trucks and a tour of the Toyota Commemorative
Museum of Industry and Technology established as a joint
project of the Toyota Group to foster a better understandingof our business activities.

Investor Relations Activities
For institutional investors and securities analysts, we
conduct quarterly briefing sessions to explain our financial
results, including business performance, as well as progressachieved at each business division and the future directionof our operations. In fiscal 2019, in addition to accepting
individual interviews with analysts and others, we hosted
an information session for our Logistics Solutions Business,
which we have been strengthening in recent years.
As for institutional investors outside Japan, we visit
major investors to explain our management policies andgrowth strategies. We also participate in conferences
hosted in Japan by securities companies and hold individual
meetings.
For individual investors, we hold company information
sessions mainly in regions in Japan where our bases arelocated to promote an understanding of our businessand management policies. Our Website also provides our
corporate history, overviews and technologies of eachbusiness as well as product information and initiatives todevelop technologies for the future.

Toyota Industries Report 2019

Opinions and requests we collect through various meansof communications with shareholders and investors are fed
back to executives and relevant business divisions to reflect
them in our future business activities.
Major IR Activities
For institutional investors and securities analysts in Japan•Quarterly financial results briefings •Individual interviews/visits•Small meetings •Teleconferencing •Business information sessions•Facility tours •Issuing/delivering Toyota Industries Reports
For institutional investors outside Japan•Individual interviews/visits •Teleconferencing•Participation in conferences hosted by securities companies•Issuing/delivering Toyota Industries Reports
For individual shareholders and investors•Company information sessions •Company-hosted plant tours•Issuing/delivering notice of general shareholders’ meeting•Issuing/delivering business reports

Earning High Scores in an External
Evaluation of Our IR Activities
Toyota Industries was named in the All-Japan Executive
Team rankings hosted by Institutional Investor, aU.S. financial magazine, in Japan’s Automobile Parts
Manufacturers sector. The rankings are based on balloting
by more than 1,000 securities analysts and institutional
investors throughout the world, and Toyota Industries
earned high scores in six out of the seven categories,
including Best CEO, Best CFO, Best IR Professional andBest Investor Relations Program.
Best CEOBest CFO
Best IR Professional
Best Investor Relations Program
Best Corporate GovernanceBest Analyst Days

Ranked 3rd overall
Ranked 3rd overall
Ranked 2nd overall
Ranked 3rd overall
Ranked 3rd overall
Ranked 1st overall

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 the consolidated dividend payout ratio of roughly
30% and meet the expectations of shareholders upon
comprehensively taking into consideration such factors as
business results and demand for funds.
For fiscal 2019, Toyota Industries increased annual cash
dividends by ¥5.0 over the previous fiscal year and paid
annual cash dividends per share of ¥155.0 (interim cash
dividend per share of ¥75.0 and year-end cash dividend pershare of ¥80.0).

Frequency Rate of Lost Workday Injuries(%)
1.60
Manufacturing industry

1.20

0.80

Toyota Industries
Good

0.00
(FY) 15

16

17

18

Measures to Prevent the Breaking of
Crane Wire Ropes
Since fiscal 2018, we have had several potentially serious
near-accidents within Toyota Industries and at its consolidated
subsidiaries, one of which involved the breaking of a crane wirerope that had passed a periodic inspection. We take the matter
seriously and have been investigating the life of wire ropes
jointly with a wire rope manufacturer. For the time being, ourfocus is on checking the status of internal damage of wire
ropes, which appear to be fine externally, caused by age
deterioration and the relationship between the internal damage
and wire diameters. For wire ropesthat appear to be fine externallybut having internal damage, wehave temporarily restricted thenumber of use and have been
ensuring safety during operation.

Checking the internal breaking ofwire ropes

Manufacturers of transportation
machinery and equipment

0.40

Sharing technologies with employees from bases outside Japan

Financial Section /Corporate Information

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

Promotion of ESG Initiatives

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

Strategies and Businesses

Relationship with Our Associates

Company Introduction

Relationship with Our Shareholders and Investors

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

54

Relationship with
Our Stakeholders

19

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

Measures to Prevent Slip and Fall
Accidents
In recent years in Japan, there has been a sharp increase in
the number of slip and fall accidents. Facing the aging of the55Relationship with
Our Stakeholders

Initiatives for Health Management andImprovement

Age-based health education

56

Toyota Industries Report 2019

2,470 persons
1,117 persons

19 persons
5,069 persons

Individuals

Workplaces

Providing information on mental healthPreventive
measuresEarly
detection/
early
resolution
Preventing
relapses

Improving support via the introduction of a stress check system
Encouraging associates tobe more aware of their
Raising awarenesshealth and offeringof health-related
advice on healthhotlineimprovement measures
Interviews aspart of healthchecksUnderstanding thecauses of stress in theworkplace andimproving working
environments<Consultation system>• Industrial healthWorkplacestaff (in-house)check results• External institutions
viewing system

Return-to-work support

Enhancing Team Strength
Toyota Industries believes
Management Skills
Technical Skills
that it is essential to enhance Expertise/skills/know-how
QC, SQC, etc.
Ability to identify andteam strength so that eachresolve issues
Ability to merge multiple
associate can work withTeam Strength levels of skill
Leadershipvitality and the Company can
To pursue improvements
thoroughly and continuously
achieve sustainable growth.
We believe that teamSpirit of Harmony
Teamworkstrength is made up of
Well-roundedhumanity“technical skills” that form
the basis of manufacturing
operations, “management skills” to make maximum use oftechnical skills and a “spirit of harmony” that supports both.
While further enhancing our team strength, we are striving
to extend and hand it down beyond all business domains,

Establishing Work Environments Where
Diverse Human Resources Can Play
Active Roles
We are implementing a variety of measures to support adiverse range of human resources who can fully exercise
their capabilities. These include promoting active roles offemale associates, supporting the employment of persons
with disabilities and creating an environment in which older
associates can work more actively.
Promoting Active Roles of Female Associates
We have been formulating plans to harness a more diverse
range of human resources and continuing to carry out
activities since 2008.
We have introduced such measures as a shorter workhour system for child care and a telecommuting system. In
addition, by introducing “a return-to-work (“welcome-back”)
system,” which allows associates who have left work tocare for children and family members or to accompany theirspouse for a job transfer to get reinstated under certain
preconditions, we provide an environment for associates towork at Toyota Industries for longer years with peace of mind.
In terms of measures to promote more active roles forfemale associates, we have set the target of increasing theratio of female graduate recruits to 40% in administrative
positions and 10% in engineering positions, and tripling thenumber of female associates in managerial positions by
the year 2020 compared with 2014, and intend to step up
activities to achieve our goal.
In 2015, we set up a project to promote more activeroles for female associates, comprising 11 males andfemales from different departments. This project was key
for the identification of issues and formulation of policy
proposals in promoting the increased active roles of female
associates through discussions and exchanges among
project members and stakeholders. The results of these
discussions formed the basis for the development of aWinners of a bronze medal in the 56th
National Skills Competition*1: Skills competition for determining Japan’s
top young engineers

Number of Medals Won at the National Skills Competition
FY2015FY2016FY2017FY2018Gold medal

1

1

1

1

FY20190

Silver medal

3

2

3

4

0

Bronze medal

1

3

1

1

3

Total

5

6

5

6

3

[Management Skills]
We conduct TICO Business Practices (TIBP) training
targeting managers and associates in administrative andengineering fields, with the aim of mutually sharing thethinking and values that the Company gives importanceto, as well as to improve our associates’ problem-solving
capabilities. TIBP training programs are also provided at
subsidiaries outside Japan in our efforts to raise the level ofmanagement skills throughout the Toyota Industries Group.
[Spirit of Harmony]
We are creating a bright, energetic and caring work
environment that fosters a dynamic workforce and allows
every member to demonstrate his or her capabilities both as
an individual and as a team. We are proactively encouraging
Initiatives fro Promoting Active Roles of Female Associates~ FY2010

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018Enhancing support systems•Introducing a shorter work-hour system for child care
•Extending the period of child care leave•Introducing a leave system to allow parental care of children with illnesses•Establishing on-site day care center•Introducing a “welcome-back” system*2•Introducing a telecommuting system•Expanding telecommuting options•Installing delivery lockers

FY2019•Introducing a financial aid
system for day care costs•Introducing a systemof leave for fertility
treatment

Cultivating corporate culture•Opening a Diversity Navi page on the intranet•Holding exchange meetings and lectures to share experiences of female associates in balancing
work and family•Project for promoting active •Female associate exchange meetings
roles of female associates
among 6 Toyota Group companies •Pre-maternity leave seminars•Lectures by male role models•Message from president•Seminars for female associates in managerial positions

Increasing the ratio of female associates•Seminars for female students in science track•Increasing recruitment of female associates from non-engineering university departments•Starting to recruit main career track female associates (for engineering positions in fiscal 1987
and administrative positions in fiscal 1997)

Financial Section /Corporate Information

Participants of age-based health education
Persons having completed guidance program on preventionof lifestyle diseases
Stop smoking enlightenment events•World No Tobacco Day: One-day no smoking (May 31)•No Smoking Days: Half-day no smoking (for eight days)
Participants of stop smoking campaigns(held jointly with health insurance association)
Participants of walking events(held jointly with health insurance association)

Introduced a Stress Check System in Fiscal 2017

Objective[Technical Skills]
To develop skills to support manufacturing, the Technical
Learning Center, one of our training facilities, plays thecentral role in associate education, offering basic skills
training at the Technical Training School and facilitating
efforts to enhance the skills of young technical staff throughin-house skills contests. We also work to cultivate highly
skilled specialists through participation in the national andinternational skills competitions.
At the 56th National Skills Competition*1 held in 2018, in
addition to receiving prizes in various other categories the
Toyota Industries team won
bronze medals in the“structural ironsmith” and“electrical welding” categories,
thereby attaining medals for the
18th consecutive competition.

Promotion of ESG Initiatives

Major Health Promotion Activities in Fiscal 2019

Improving Mental Health Support Systems

communication not only during work hours but also throughsocial gatherings, sports days, summer festivals, Groupwide ekiden long-distance relay races and cheer squads forvarious sports events.

Strategies and Businesses

As a task for the medium term, we are promoting healthimprovement of associates, mainly focusing on preventionof lifestyle diseases and mental health support activities, tocounter risks associated with aging and greater stress.
For prevention of lifestyle diseases, we conduct periodic
age-based health education for all associates. We also
feed back to associates the results of an annual healthcheckup and measurements conducted on the same day,including physical fitness, body fat percentage and amountof fat around internal organs, along with advice to improve
lifestyle habits. This health education is designed to provide
motivation for better health by letting associates think
about their health over the course of the one-day program.
Additionally, we will augment our initiatives to enable eachassociate to work and take active roles until the age of
65. We are now considering the enhancement of physicalfitness measurement programs and implementation of
measures to support associates’ self-help efforts.
For preventing and ameliorating symptoms of metabolic
syndrome, we provide health promotion guidance toassociates with mild obesity or who are slightly overweight,
in addition to specific health guidance required by theJapanese government. By doing so, we encourage
associates to improve lifestyle habits early on.

generations and geographic regions.

Company Introduction

Hazard markings on uneven floors and stairs

As part of mental health support activities, we have inplace a system to offer early consultation through a healthrelated hotline. Other activities include upgrading our selfcare/line-care education to prevent new cases of mental
health problems and operation of a return-to-work support
program for persons on long-term leave for prevention of
relapses. We have successfully achieved positive results
through these activities.
Under the stress check system introduced in fiscal
2017, we again conducted a check on all associates
in fiscal 2019. As in fiscal 2018, we fed back the check
results to all participants and workplaces with suggestions
for improvement. We also set up an individual interview
with a doctor 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, weoperate an IT-based workplace check results viewing
system that allows the users to perform a precise search ofresults and tips for improvement. In the future, we will further
reinforce our workplace improvement activities by linking
them with associate awareness surveys.
For these efforts, Toyota Industries was again recognizedin the large enterprise category of the 2019 Certified Healthand Productivity Management Organization Recognition
Program (White 500) jointly promoted by Japan’s Ministry of
Economy, Trade and Industry and the Nippon Kenko Kaigi.
We will continue to undertake activities to promote bothmental and physical health and create a workplace thatenables all associates to work actively.

Mental health education

workforce ourselves, we are concerned about this upward
tendency and have been promoting activities to prevent slip
and fall accidents. Along with raising associate awareness,
we are doing everything we can to ensure intrinsic safety
and meticulously provide visual warnings and preventive
measures at hazardous points. These include installing antislip tapes and hazard markings on uneven floors and stairs
as well as fixing shoe cleaning mats onto the floor.

Cultivating career consciousness•Individual interviews with female assistant managers and their superiors•Formulating individual •Sending trainees overseas
development plans•Training for career development for assistant managers

Setting targets for the number of female associates in managerial positions
Tripling the number of female associates in managerial •“Eruboshi” certification
positions by 2020
Toyota Industries [25 (2014); 31 (2017); 75 (target for 2020)]*2: A system to enable reinstatement under certain preconditions57

associates in child care
(1) Sending associates overseas for training(Ongoing)
at an early stage in their careers(2) Career training and interviews for female
assistant managers
Career support
for female(3) Role model exchange meetings
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 telecommuting options
Promotingflexible working (2) Establishing satellite offices
practices(3) Installing refrigerated delivery lockers

58

Toyota Industries Report 2019

Pre-maternity leave seminar

Refrigerated delivery lockers

range of jobs and higher quality of work, and at the sametime, to enable all associates working under time constraints
to fulfill their individual potential.
Employment of Persons with Disabilities
We respect the idea of people with and without disabilities
working together and sharing life and work values. Under
this basic policy, we continue to employ persons withdisabilities every year. They are assigned to a variety ofsections and work with other members to perform theirdesignated tasks. In fiscal 2019, the ratio of associates withdisabilities on a non-consolidated basis was 2.37%.

Activities as a Good Corporate Citizen
Based on “Respect for Others” as described in our Basic
Philosophy, we strive to fulfill our role as a good corporate
citizen in every region where we do business and actively
engage in social contribution activities to realize an enriched
and healthy society. In our activities that emphasize social
welfare, youth development, environmental protection andcommunity contribution, we not only provide cooperation andsupport through personnel, facilities, funds and know-how
but also strive to closely connect with participants. To foster
employees’ awareness of their ties to society and raise theirinterest in contributing to society, we make enlightenment
efforts such as sharing information on volunteer activities
and providing venues for volunteer activities that encourage
the participation of all employees. Employee associations*1
are actively undertaking various activities to contribute to
local communities, mainly in the areas of supporting welfare
facilities and protecting the natural environment.
*1: Voluntary organizations formed by employees at each job level

Ratio of Associates with Disabilities (Non-Consolidated)

Structure for Promoting Social
Contribution Activities

(%)
2.4
2.3
2.2
2.1
2.0
0

(FY)

15

16

17

18
19
(As of June 1 of each fiscal year)

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

Major Social Contribution Activities of Toyota Industries andGroup Companies
Theme

Activities

Events to interact with persons with disabilities· “Walk Rally (orienteering),” harvest festival, festival
Support for welfare facilities· Support for charity bazaars at facilities by providing goods· Volunteer work for facility cleanup/repair/pruning/weeding
Social·	Support for sales of products from facilities for persons with disabilities by providing
welfareopportunities to set up stalls· Volunteer listening activities at elderly care facilities
Supporting the Special Olympics Nippon National Summer Games in Aichi(P59)
Holding an Awareness-Raising Workshop for Facilitating an Understandingof Disabilities (France) (P60)
Support for Youth Invention Clubs· Monozukuri workshops for elementary school children during summer vacations· Holding handmade kite-flying competitions
Youth
Providing plant-hosted environmental education to elementary school children
development Holding mini concerts at elementary schools
Providing monozukuri lessons at school
Holding an After-School Craft Workshop for Elementary School Children (P59)
Hosting “Dream Yume Camp” for Children with Disabilities (Indonesia) (P60)
Initiatives for forest conservation· Tree thinning activities for conservation of prefecture-owned forests· Producing and donating benches that made effective use of thinned wood
Environmental· Tree-planting activities for reforestation
protection
Cooperating with an Animal Protection Program of the Bannerghatta
National Park (India) (P60)
Conducting county road cleanup activities in areas around plants (U.S.A.)
Participation in local traditional event (Mando Festival)
Road cleanup activities in areas around plants
Community Activities to raise awareness for traffic safetycontribution Crime prevention patrols
Joining the American National Red Cross Home Fire Campaign (U.S.A.) (P60)
Supporting infrastructure development in areas around plants (India)
Holding charity concert
Support for international NGO through volunteer activities to collect spoiled postcards
Other
and others
Periodic blood donation drives(Activities without country designation were conducted in Japan.)Creating a Work Environment for Older Associates
We focus on creating a better work environment for older
associates by adjusting the height of jigs in production lines
and modifying processes to compensate for deterioration ofvision so that they can work with less stress.
In addition, we hold “Seminars for an Active Life” forassociates reaching the age of 50 and 55 to give them an
opportunity to envision life and work for the next 10 years.
As an effort to support associates to balance their workand nursing care, we created the Handbook for Balancing
Work with Nursing Care and distributed it to associates
aged 40 or older to help them gain knowledge on nursing
care and to create a workplace culture that allows
associates to seek advice easily. We also hold lectures for
managers and seminars on balancing work with nursing
care for associates and their families.

Improvement activity on an engine
production line

Seminar on balancing workwith nursing care

Activity Examples of Toyota Industries (Japan)
Supporting the Special Olympics Nippon National Summer Games in Aichi

Social Welfare

Financial Section /Corporate Information(1) Launch, message from president(2) Awareness seminar for managerial staff
Changing(3) Follow-up on individual development plans (Ongoing)mindsetsamong(4) Getting spouses involved in pre-maternity
managerial
leave seminars
staff and across (5) Lectures by male role models
all associates (6) Promoting further engagement of male

Seminar for managerial staff members

The Special Olympics Nippon National Summer Games, which are hosted every four years by theSpecial Olympics (SO) Nippon Foundation*2, were held in Aichi Prefecture. With Kariya City andseveral other cities and a town within the prefecture hosting competitions, some 1,000 athletes
from across Japan gathered and enthusiastically competed in 13 events, including track and field,
soccer and volleyball. Toyota Industries made a monetary donation to the project and cooperated
in operating shuttle buses. During the three-day event, 53 employees volunteered to support theathletes and run the games.
*2: A global sports organization providing opportunities for people with intellectual disabilities to receive sports training and participate incompetitions as an effort to support their independence and social engagement

Holding an After-School Craft Workshop for Elementary School Children

Toyota Industries’ manager association visited an afterschool club at an elementary school and held a workshop
for 73 students, from first to sixth graders. The membersof the association served as instructors to carefully teachthe children to make simple mechanical toys and let themexperience the joy of playing with toys they have made on
their own.

Promotion of ESG Initiatives

Implementation
FY2016 FY2017 FY2018 FY2019 FY2020

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

Strategies and Businesses

Action Plan

Relationship with Our Local Communities

Company Introduction

Company-wide action plan in clarifying the initiatives for thisproject. In carrying out the action plan, we specifically focus
on the initiatives to change the mindset among managerial
staff and across all associates, provide career support for
female associates and promote flexible working practices.
Since fiscal 2017, we have held a seminar for a cumulative
total of more than 1,300 managerial staff members who
directly engage in the mentoring and development ofassociates. In fiscal 2019, we conducted enlightenment
activities to foster an understanding of the environment inwhich associates, both male and female, having limited
working hours due to nursing care or child care are working.
We also worked to raise awareness of human resources
development that takes into account their life events.
In order to create an environment to allow associates
who are balancing work and child/nursing care to workwith higher motivation and pursue career development, wehave enhanced our programs to support the early return
to work from a break in their career. Efforts include a fullday telecommuting system launched in October 2016;pre-maternity leave seminars started in December 2017 forassociates and their spouses to think about a way of working
after returning to work; and a financial aid system for day
care costs adopted in April 2018 for associates working
while taking care of infants younger than one year old. We
also introduced a system of leave for fertility treatment in
September 2018 and a loan system in April 2019.
As a result of these initiatives, the number of female
associates holding the assistant manager or higher position
has been increasing every year. In January 2016, we werecertified by the Aichi Labor Bureau as a “Female-Friendly
Company” and received “Eruboshi (“L Star”: L stands for
Lady, Labour and Laudable)” certification from the Ministryof Health, Labour andNumber of Female Associates
Welfare in October ofHolding Assistant Manager or
Higher Position
the same year. The latter(Persons)
certification is given
150
to companies making
excellent efforts in100
promoting active femaleroles in the workplace.
50
We are working to
improve workplaces so as0(FY)151617
18
19
to offer females a wider(As of March 31 of each fiscal year)

Relationship with
Our Stakeholders

Youth Development

Number of Participants of Social
Contribution Activities of Employee
Associations(Persons)
1,500
1,000
500
0

(FY) 15

16

17

18

19

Each employee association voluntarily and proactively
engages in social contribution activities, with the numberof participants remaining at a high level every year.

59Relationship with
Our Stakeholders

Environmental
Initiatives

Activity Examples of Consolidated Subsidiaries (Outside Japan)

FranceHolding an Awareness-Raising Workshop for Facilitating an Understanding of Disabilities

Social WelfareWith the support of an external organization, TMHFR held a workshop to raiseawareness for disabilities. The workshop is designed for employees without disabilities
to better understand the difficulties and feelings of employees with visual, hearing andother physical disabilities or those with a psychosomatic disease in their daily lives. The
event was attended by 81 employees, in which they experienced cooking with blinders
or earplugs. They shared the feeling of their challenged colleagues through the disability
simulations and exchanged information on disabilities.

Youth Development

P70–71
P72–75
P76

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
that are clean, safe and of high quality. Accordingly, inFebruary 2011, we established the Global Environmental
Commitment, a specific environmental action guideline,
to be shared and implemented throughout the Toyota
Industries Group. The entire Toyota Industries Group will
dedicate concerted efforts to realizing a prosperous life inharmony with the natural environment.
Aiming at realizing a prosperous life inharmony with the natural environment

Participants of the first Dream Yume Camp

Environmental Protection

Kirloskar Toyota Textile Machinery Pvt. Ltd. (KTTM)
Subsidiary producing textile machinery

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

Environmental Management

Notional Diagram of Global Environmental Commitment

Following the 2015 adoption of the Paris Agreement, aninternational framework for action against climate change,
the establishment of a low-carbon emission society has
become a global common goal. For Toyota Industries as
well, the need to take further proactive measures is growing
as global environmental issues continue to become ofgreater concern, with more people becoming increasingly
conscious about the environment.
Under the circumstances, we have defined ouraspirations in 2050. The Global Environmental Commitment,
which represents our basic approach to environmental
activities, specifies four action themes, namely,1) establishing a low-carbon emission society;2) establishing a recycling-based society; 3) reducing
environmental risk and establishing a society in harmony
with nature; and 4) promoting environmental management.
As a milestone toward achieving our aspirations in 2050,
we have formulated the Sixth Environmental Action Plan,a five-year plan for the period from fiscal 2017 to fiscal
2021, and will resolutely undertake activities in accordancewith the plan. We have created environmental panels thatsummarize our aspirations and an action plan in order toraise employees’ awareness concerning the environmentand communicate our approach to outside parties.

Financial Section /Corporate Information

To expand animal protection activities among citizens, KTTM cooperated with aprogram of the Bannerghatta National Park located near its plant. The goal of the
program is to maintain a safe animal habitat by soliciting donations from individuals
and companies to cover animal rearing and medical expenses. KTTM signed a oneyear contract starting from October 2018 for the protection of nine animals and birds,
including Asian elephants, white tigers, ostriches and lion-tailed macaque, and donated350,000 rupees.

Recycling-basedsociety

Aspirations in 2050 and the Sixth
Environmental Action Plan

Aspirations in 2050
Animal protection activity

U.S.A.

Joining the American National Red Cross Home Fire Campaign

Community Contribution

Toyota Material Handling, U.S.A., Inc. (TMHU)
Subsidiary engaging in sales and servicing of materials handling equipment

TMHU joined the Home Fire Campaign promoted by the American National Red
Cross jointly with fire departments throughout the United States. Employee volunteers
received training at local fire departments and learned how to install smoke alarms andcreate a fire evacuation plan. They were then divided into small groups to visit residents
in their respective areas, explain the need to ensure fire safety at home, test smoke
alarms and install smoke alarms if residents do not have them. In 2018, 73 employees
participated in the campaign and installed 106 smoke alarms.

(1) Establishing a low-carbon emission 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 a society inharmony with nature⇒ Generate positive influence on biodiversity(4) Promoting environmental management⇒ Enhance consolidated environmental management andpromote enlightenment activities

Promotion of ESG Initiatives

Cooperating with an Animal Protection Program of the Bannerghatta National Park

P63
P64–65
P66–67

P68–69Strategies and Businesses

Jointly with the Wheelchairs and Friendship Center of Asia (WAFCA)*3, Toyota Motor
Corporation (TMC) and DENSO Corporation, TACI hosted the first “Dream Yume Camp”
and invited 12 children with disabilities. This event aims to help children with disabilities
to act spontaneously and realize the importance of taking on challenges. The children
watched games at a disability sports event, in which TMC’s athletes participated,enjoyed interactive sessions with these athletes and joined in a wheelchair sport. At theend of the event, each child talked about his or her dream for the future.

India

P62

Establishing a Recycling-Based Society
Reducing Environmental Risk and Establishinga Society in Harmony with Nature
Environmental Management
Third Party Assurance ofEnvironmental Performance Data

Company Introduction

Global Environmental Commitment

P.T. TD Automotive Compressor Indonesia (TACI)
Subsidiary producing car air-conditioning compressors*3: C ertified non-profit organization donating wheelchairs to children with disabilities as a means of going out and seeking to help
realize a society where everyone lives equally

P61

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

Disability simulation

Hosting “Dream Yume Camp” for Children with Disabilities

Vision for Environmental Activities
Structure to Implement
Environmental Management
Environmental Impact Flow andEnvironmental Accounting
Sixth Environmental Action Plan
Establishing a Low-Carbon Emission Society

Vision for Environmental Activities

Toyota Material Handling France SAS (TMHFR)
Subsidiary engaging in sales and servicing of materials handling equipment

Indonesia

Environmental Initiatives

Raising employees’ awareness by using an environmental panel

Inspecting a smoke alarm60

Toyota Industries Report 201961