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

Environmental Initiatives

Structure to Implement Environmental Management

Environmental Impact Flow and Environmental Accounting

Positioning environmental response as one of its most crucial management issues, Toyota Industries isenhancing its environmentally oriented corporate management on a global basis through the promotionof consolidated environmental management.

In this section, we provide an overall picture of environmental impact resulting from our global businessactivities and report the results of environmental accounting (environmental conservation cost,environmental conservation benefits and economic benefits of environmental conservation initiatives).

Promotion of Environmental
Management System

Environmental Impact Flown Environmental Management Structure

Environmental Committee

President

Specialized committees•Team leader•Supervising auditors•Auditors

Product Environment Subcommittee

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

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

EngineCompressor
Electronics

Division-Based
Promotion Committees

Textile Machinery

As in the previous fiscal year, in fiscal 2019 we
conducted introductory educational courses to foster theknowledge 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

Environmental Audits
Toyota Industries implements annual internal environmental
audits as well as external audits carried out by anindependent third-party institute.
In fiscal 2019, the external review identified one minor
non-conformance issue. We have taken corrective action
and disseminated the details throughout the Company forthe prevention of recurrence.
We continued to conduct internal audits under themutual, interdivisional audit system. We strived to upgrade
our auditing capabilities by organizing audit teams with thedual goals of fostering the development of auditors andincreasing audit efficiencies. In the area of audits, our focus
was placed on environmental policy management and onsite environmental management, and we clarified how mucheach business division contributes to overall environmental
management and checked if there are any environmental
risks in each division.

n Companies Subject to Consolidated Environmental Management (As of March 31, 2019) * Only the names of production bases are listed.

Asia: 14 production companies;

20 non-production companies

Toyota Industry (Kunshan) Co., Ltd. (China)
TD Automotive Compressor Kunshan Co., Ltd. (China)
Yantai Shougang TD Automotive Compressor Co., Ltd. (China)
Zhejiang Aichi Industrial Machinery Co., Ltd. (China)
Uster Technologies (Suzhou) Co. Ltd China (China)
Cascade Xiamen Forklift Truck Attachment Co. Ltd. (China)
Cascade Hebei Forks Co. Ltd. (China)
Tailift Machinery & Equipment (Qingdao) Co., Ltd. (China)
Toyota Industries Engine India Private Limited (India)
Kirloskar Toyota Textile Machinery Private Limited (India)
P.T. TD Automotive Compressor Indonesia (Indonesia)
Cascade Korea Limited (Korea)
Tailift Material Handling Taiwan Co., Ltd. (Taiwan)
Toyota Industrial Equipment Vietnam Co., Ltd. (Vietnam)

62

Toyota Industries Report 2019

City gas

90,172 km3N

LPG

5,112 tPetroleum products

3,041 kl

Coal products

7,802 t

LNG

1,406 tR&D/Design

Procurement

Production■ Raw Materials [consolidated]

Transportation/Sales

Raw material consumption

Greenhouse gases other than CO2

3,485 t-CO2

CO2 from logistics

26,481 t-CO2

SOx (Sulfur oxides)

359 kgNOx (Nitrogen oxides)

140 t

VOC (Volatile organic compounds)■ Chemical Substances[Japan consolidated]
Emissions/transfers of PRTR
law designated substances

430 t■ Waste [consolidated]

830,588 t

110,466 t

Waste generation■ Water [consolidated]
Water consumption

1,369 tUsage

4,620 km3

■ Into Waterways[consolidated]■ Chemical Substances

33 t

Water pollutants[Japan consolidated]
PRTR law*2 designatedsubstances

Recovery/Recycling

1,379 tDischarge of treated wastewater

2,463 km3

*1: Terajoule is a unit used to measure heat. 1 TJ = 1012 joules*2: 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.

Environmental Accounting
Fiscal 2019 Environmental Accounting*3
Scope of data collection: Toyota Industries Corporation
Period of data collection: April 1, 2018 – March 31, 2019

67 non-production companies

Toyota Material Handling Manufacturing France SAS (France)
TD Deutsche Klimakompressor GmbH (Germany)
Toyota Material Handling Manufacturing Italy SpA (Italy)
L.T.E. Lift Truck Equipment S.p.A (Italy)
Cascade Italia S.r. l. (Italy)
Toyota Material Handling Manufacturing Sweden AB (Sweden)
Uster Technologies AG (Switzerland)
Cascade (U.K.) Limited (U.K.)
Vanderlande Industries B.V. (Netherlands)
SIMAI S.p.A. (Italy)
Vanderlande Industries Espana S.A. Sociedad Unipersonal (Spain)

1,309,763 MWh

North America: 18 production companies;

45 non-production companiesJapann Non-consolidated: 10 production bases;
14 non-production basesn Consolidated subsidiaries in Japan: 15 production
companies; 21 non-production companies
Tokyu Co., Ltd. (Aichi)
Tokaiseiki Co., Ltd. (Shizuoka)
Miduho Industry Co., Ltd. (Aichi)
IZUMI MACHINE MFG. CO., LTD. (Aichi)
Haratechs Corporation (Gifu)
Mino Tokyu Co., Ltd. (Gifu)
Altex Co., Ltd. (Shizuoka)
Aichi Corporation (Saitama)
Nagao Kogyo Co., Ltd. (Aichi)
Unica Co., Ltd. (Aichi)
Nishina Industrial Co., Ltd. (Nagano)
Iwama Loom Works, Ltd. (Aichi)
HANDA Casting Company (Aichi)
Takeuchi Industrial Equipment Manufacturing Co., Ltd. (Aichi)
Sugiyama Industries Co., Ltd. (Aichi)

Oceania: 1 production company;

16 non-production companies

Cascade (Australia) Pty. Ltd. (Australia)

Cascade (Canada) Ltd. (Canada)
Toyota Industrial Equipment Manufacturing, Inc. (U.S.A.)The Raymond Corporation (U.S.A.)
Raymond-Muscatine, Inc. (U.S.A.)TD Automotive Compressor Georgia, LLC (U.S.A.)
Michigan Automotive Compressor, Inc. (U.S.A.)
Indiana Hydraulic Equipment Corp. (U.S.A.)
North Vernon Industry Corp. (U.S.A.)
Cullman Casting Corporation (U.S.A.)
Toyota Industries Compressor Parts America, Co. (U.S.A.)
Uster Technologies, Inc. USA (U.S.A.)
Cascade Corporation (U.S.A.)
PSM LLC (U.S.A.)
American Compaction Equipment, Inc. (U.S.A.)
Tailift Material Handling USA Inc. (U.S.A.)
Bastian Solutions, LLC (U.S.A.)
Bastian Automation Engineering, LLC (U.S.A.)
Vanderlande Industries Manufacturing USA Inc. (U.S.A.)

Latin America: 1 production company;

9 non-production companies

Toyota Material Handling Mercosur Indústria e Comércio deEquipamentos Ltda (Brazil)*3: Environmental accounting data is collected in compliance with the Ministry of the Environment’s Environmental Accounting Guidelines 2005 Version.

n Environmental Conservation Cost
Category
Pollution prevention costs
Business Global environmental
area costs conservation costs(Millions of yen)

FY2019Environmental Impact

FY2018Investment Expenses Investment Expenses
37

n Environmental Conservation Beneﬁts

150

596

195

1,922 t decrease

Generation of waste products

3,232

675

2,825

158

110

261

124

Upstream/downstream costs

0

388

0

449

Management costs

0

214

0

187

Item

Research and development costs

78

4,284

78

3,882

Revenue

Social contribution activity costs

0

103

0

103

Environmental remediation costs

2

0

0

0

801

8,481

1,610

7,765

Total

9,282

9,375

472 t decrease

Water

526

Resource recycling costs

Comparison with Previous Fiscal Year

CO2

Financial Section /Corporate Information

Europe: 11 production companies;

Electricity

941,371 t-CO2

Promotion of ESG Initiatives

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

Auditor training by an external lecturer

CO2 emissions

17,514 TJ*1

Strategies and Businesses

Internal audit
Responsible internal auditor■ Into the Air [consolidated]

OUTPUT

Committees

Energy consumption

INPUT

Organizations

Environmental
Impact Flow

■ Energy [consolidated]

Company Introduction

Toyota Industries has positioned environmental response
as one of its most crucial management issues. To quickly
reflect top management’s decisions on business operations,Toyota Industries has established and been operating a
Company-wide integrated environmental management
system (EMS), with the president at the top.

positions proactively attended these courses, we were able
to promote the enhancement of environmental management
and the development of internal auditors.
For internal auditors, we provided auditor training
by an external lecturer for upgrading the quality of ourinternal audits. The curriculum covered a method to audit
on-site environmental
management, which isone of the priority audit
items for fiscal 2019, andparticipants accordingly
learned required skills.

19,833 m3 decreasen Economic Beneﬁts of Environmental Conservation Initiatives(Millions of yen)

Cost reduction

Total

Details

AmountReturns from sale of recycled waste products

5,530

Energy cost reductions

15

Cost reduction by resource savings(including reductions in amount of water use,
wastewater treatment costs, etc.)

34
5,579

63

Environmental Initiatives

Sixth Environmental Action Plan
The results of our activities in fiscal 2019 showed steady progress across the board toward achieving
respective targets for fiscal 2021.

Progress of Sixth Environmental ActionPlann Production Related
Segments

Subject

Reduce CO2 emissions from productionrelated logistics• Improve transportation efficiency throughsuch measures as modal shift and bettercargo loading efficiency

CO2
emissionsfromlogistics

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

Total
emissions2006

GlobalNonconsolidated

Nonconsolidated

Emissionvolume perunit ofproduction*1

Emissionvolume perunit ofproduction

–26%

–26%

–30%

2007

–32%

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

Manage chemical substances
contained in products• Investigate chemical substances contained in products
and manage switching over of SVHC*3 and othersubstances of concern to other substances• Supported chemical substance management
at affiliated companies outside Japan• Conducted survey on chemical substances
contained in productsn Others–30%

Reducing
Environmental
Risk and
Establishing aSociety inHarmony with
NatureAction Policies–29%

Augment and promoteconsolidated environmental
management• Build a global environmental management system andpromote related activities to:Comply with environment-related laws in each country
and region
Formulate a medium-term plan based on visualizationof environmental risks and conduct activities to• Promoted mitigation activities
prevent risks from occurring• Inspected environmental risks at production
Enhance risk communication with relevantbases in Japan
organizations and local residents
Achieve the highest-level environmental performancein each country and region• Enforce strategic environmental management that
integrates environmental activities and business activities

Enhance education andenlightenment activities• Extend the scope of Toyota Industries’ enlightenment
activities to consolidated subsidiaries in and outside
Japan• Give back to society the outcomes of enlightenment
activities• Held environmental seminar

Promote environmental
activities in collaboration withbusiness partners• Ensure compliance with laws and regulations andimprove environmental performance based on theEnvironmentally Preferable Purchasing Guidelines• Held briefing sessions for business partners inJapan• Pursue higher brand image through proactive
information disclosure• CDP*4 climate change: ranked A (on aperformance band of A to F)• CDP water security: ranked A (on aperformance band of A to F)• Nikkei’s Environmental Management Survey:
ranked 13th (out of 1,731 target companies)• Received prize for Biodiversity Action Award
Japan 2018 (animal path within the Higashiura
Plant)

Improve eco-conscious brand
image
2006

–36%
(24g/m2)

FY2019 Achievements

Augment activities related toprotection of biodiversity

–27%

2006

Specific Actions• Share the biodiversity guidelines across all Toyota Group
companies and contribute to the expansion of a habitat
for living organisms• Participated in All Toyota Green Wave Project• Formulate and promote plans to link activities and• Devised biodiversity conservation action planconnect green zones by undertaking activities forwithin Toyota Industries premises
conservation of biodiversity throughout the Toyota
Industries Group, including at consolidated subsidiaries
in and outside Japan–28%

Promoting
Environmental
Management–33%

Emissionvolume perunit ofproduction

Reducing
Environmental
Risk and
Establishing aSociety inHarmony with
NatureSegments–33%
Emissionvolume perunit ofproduction

Nonconsolidated(automobile
body)

–10%

2006

Nonconsolidated

VOC*2emissions–14%• Developed fuel cell lift truck• Developed next-generation electriccompressor• Developed air-jet loom
• Developed new vehicle• Reduce use of resources through longer product life
Implement initiatives to promote • Reduce use of resources through standardization,
Establishing a• Developed next-generation engine
3R (reduce, reuse and recycle)
modularization and reduction of components
Recycling-Based• Developed reach-type electric lift truck
design for effective resource• Reduce use of resources through development ofSociety• Developed new DC-AC inverter
utilization
technologies to enable weight reduction and downsizing• Promote reuse of components and resources

Sixth Environmental Action Plan TargetsJapan
consolidated
Waste
generation
volumeTargets• Develop technologies that contribute to an even greaterlevel of energy efficiency• Develop products and technologies that respond toelectrification• Develop technologies to enable weight reduction• Reduce energy loss
• Develop technologies for the realization of a hydrogenbased society

FY2019 Achievements–36%(24g/m2)

Financial Section /Corporate Information

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

CO2
emissionsControl Items Base Year (FY) Achievements

Establishing a Reduce CO2 emissions throughLow-Carbon
product and technology
Emission Society development

Specific Actions

Promotion of ESG Initiatives

Establishing a
Recycling-BasedSociety

Nonconsolidated

Reduce CO2 emissions from production
activities• Develop and introduce productionengineering technologies with lower CO2
emissions• Reduce CO2 emissions by fully
implementing improvement activities on adaily basis• Develop innovative CO2 reduction
technologies that utilize clean energy• Manage greenhouse gases other than
CO2

Promote measures against resource
depletion by 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 eachcountry/region and develop and promote
appropriate measures

Scope

Action Policies

Strategies and Businesses

Establishing a
Low-Carbon
Emission Society

FY2021
Targets

FY2019 Achievements

Action Policies/Specific Actions

Sixth Environmental Action Plan Targets
Segments

Company Introduction

With an eye to realizing a prosperous life in harmony with
the natural environment through the establishment of asustainable society, we formulated the Sixth Environmental
Action Plan for the period from fiscal 2017 to fiscal 2021
and are promoting activities according to the plan. Throughactivities undertaken during fiscal 2019, we made steadyprogress toward achieving respective targets for fiscal 2021.

n Product Related*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 of reduction rates of all businesses is used as
our management index.
*2: Volatile Organic Compounds*3: Substances of Very High Concern*4: An international not-for-profit organization established in the United Kingdom in 2000 to encourage companies and governments to reduce greenhouse gas emissions, conserve water
resources and protect forests† Details of the Sixth Environmental Action Plan are available at:https://www.toyota-industries.com/csr/environment/management/plan_6/

64

Toyota Industries Report 201965

Environmental Initiatives

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

Promoting Thorough Energy Savings

Our Approach

Total emissions (non-consolidated)

14
26

FY21 target:% reduction (vs FY06 level)

10% reduction(vs FY06 level)

Before improvement

Emission volume per unit of production (global)
FY21 target:% reduction (vs FY06 level)

Exhaust outlets

26% reduction(vs FY06 level)

Hot air outlets
Coating dry-off ovenInOut

* Facility that produces hydrogen by using electricity generated by renewable solar powerand can compress, accumulate and feed resulting hydrogen to vehicles

1.00
1.00
Total
emissions
(kt)

1,000

n Message from a Stakeholder
The Aichi prefectural government isencouraging the use of low-carbonhydrogen that does not emit CO2 bothwhile in use and production in orderto accelerate its efforts against global
warming.
Toyota Industries’ H2 PLAZA isa model project in the field of lowToshihiro Morita
Director, Environmental
carbon hydrogen production and use
Bureau, Aichi Prefecture
within a plant. Aichi Prefecture hopes
to disseminate information on such examples to increase
and broaden the use of low-carbon hydrogen.
Moreover, the development and manufacture of FC
lift trucks and other materials handling equipment willlead to the expanded base for hydrogen use, and wehope to see further developments in this area toward thebuilding of a hydrogen-based society.

Mechanism of H2 PLAZA (Hydrogen Station for FC Lift Trucks)n CO2 Emissions (Non-consolidated/Consolidated subsidiaries inand outside Japan)
Non-consolidated
Consolidated subsidiaries in Japan
Consolidated subsidiaries outside Japan
Reduction rate (non-consolidated)
Reduction rate (consolidated)

H2 PLAZA opening ceremony

Hydrogen

Reduction rate

Electricity

Financial Section /Corporate Information

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

Bird’s-eye view of H2 PLAZA

Promotion of ESG Initiatives

FY2019 Results

The Takahama Plant, a materials handling equipment
production base in Aichi Prefecture, has been promoting
CO2 emissions reduction activities along with systematicenergy-saving efforts by proactively using solar and otherrenewable energy and hydrogen.
The plant constructed H2 PLAZA, a hydrogen stationthat uses renewable energy*, on the plant premises andstarted operations in March 2019. The H2 PLAZA produces,compresses and charges hydrogen to fuel cell (FC) lift trucks
used within the plant according to their operational status.
Through the efficient use of energy, this helps to reduce
CO2 emissions. Moreover, FC lift trucks do not emit CO2
while in operation. They are able to be fully CO2 free fromhydrogen production to operation since they are charged
with hydrogen generated by using solar or other renewableenergy. This hydrogen station is subsidized by the Ministryof the Environment for CO2 emissions reduction projects.
The Aichi prefectural government runs a program tocertify hydrogen generated by using renewable energy as
low-carbon hydrogen. Our hydrogen station is the third
low-carbon hydrogen production project certified under the
program in Aichi Prefecture, following the one at Chubu
Centrair International Airport and another project.
Since commencing sales in November 2016, Toyota
Industries’ FC lift trucks have been adopted by factories
and airports around Japan for their excellent environmental
performance and enhanced convenience of completing
charging in about three minutes. In fiscal 2019, we increased
the number of FC lift trucks used at the Takahama Plant.
FC lift trucks are expected to reduce the environmental
impact at logistics sites of various industries and contributeto realizing a hydrogen-based society. Accordingly, Toyota
Industries will continue to promote global environmental
conservation through the effective use of hydrogen.

Strategies and Businesses

Summary CO2 Emissions (Production Activities)

The Nagakusa Plant, a vehicle assembly base in Aichi
Prefecture, has been promoting comprehensive energysaving activities.
In fiscal 2019, the plant achieved a significant result in its
efforts to save energy used in a coating dry-off oven.
In a conventional oven, vehicles had been carried fromthe previous process into the oven on a hanger, and this had
required the heating of these hangars and extra space within
the large oven, causing the wasteful use of energy.
To reduce such wasteful consumption, the plant
replaced hangars with carts and started circulating carts
within the oven to maintain its internal temperature.
Changes also included designing the optimum shape forthe oven to eliminate the extra space inside and moving the
hot air outlets above the exhaust outlets after reviewing theirplacement to ensure efficient air circulation. Through thesechanges, the plant achieved uniform heat distribution within
the oven with a smaller amount of energy.
The improvement allowed the plant to reduce its annual
CO2 emissions by approximately 354 tons.

Establishing H2 PLAZA Hydrogen Station at the
Takahama Plant

Company Introduction

For Toyota Industries, dealing with global warming is
not just a “risk.” It also presents “opportunities” in doing
business to both differentiate ourselves by leveraging ourtechnology-based product appeal and conduct ecoconscious production activities.
In our aspirations in 2050, we set a goal ofestablishing a zero CO2 emissions society on a global
basis and have been making efforts in various fields. In
the area of product development, our focus includes
electrification and increasing the fuel efficiency of engines.
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 andeffectively utilize hydrogen while thoroughly eliminating
wasteful use of energy in production processes andincreasing the efficient use of energy.

Reducing Energy Used in a Vehicle Coating
Dry-Off Oven

Utilizing Renewable Energy and Hydrogen

1.0
0.78

0.76

0.73

0.73

0.70

940

913

909

0.74

0.74
0.70

After improvement

0.8
0.6

Solar power generation

Water electrolysis tank

Buffer tankGood

35 MPaHot air outlets
Exhaust outlets
Coating dry-off oven667

40 MPa0.8→40 MPa

Accumulator

Compressor

500

In
Good

66

0

(FY) 06

Toyota Industries Report 2019

Out
FC lift truck

17

18

19

Dispenser

21

67

Environmental Initiatives

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

Our Approach (Waste)

FY2019 Results

33

FY21 target:% reduction (vs FY06 level)

29% reduction(vs FY06 level)

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

33

27% reduction(vs FY06 level)n Waste Generation(Non-consolidated/Consolidated subsidiaries in Japan)
Non-consolidated

Before improvement(1)
Feedingsand(2)Preheating(3)
Creating
a sandcore

Reduction rate (Non-consolidated/consolidated subsidiaries in Japan)

Reduction rate

When changing
the sand type,
all sand is
discarded.

Diagram of conserving water resources from three aspects

Preheating tankBlower head

Promoting the Effective Use of Water

Summary Resources
Mold for a sand core

After improvement

1.00
1.00
1.00
0.72
0.70

0.69
0.69

Total
generation
(kt)

0.73

0.67
0.67

0.71

0.80

(1)
Feeding
sand

0.60 Good

Stop the supply of sand whenreaching the required amount.

(2)
Preheating
81
65

69

70
(3)
Creating
a sand
core

50

68

Sand supply stopper

Consolidated subsidiaries in Japan

Reduction rate (non-consolidated)

0(FY) 06

Toyota Industries Report 2019

Wastewater
discharge

17

18

19

FY2019 Results
In fiscal 2019, we identified water risks at each base andconsolidated subsidiary and promoted activities to conserve
water resources. To increase the credibility of our externallydisclosed information, we obtained third party verification of
the water consumption and wastewater discharge data ofthese bases and consolidated subsidiaries.
Our activities earned high scores in CDP surveys in
2018. We will continue our water resource conservation
activities encompassing our supply chain.

Water recycling equipment installed by TMHIT

Financial Section /Corporate Information

Under the Sixth Plan, we are working toward achieving the
fiscal 2021 targets of reducing waste generation volume perunit of production compared with the fiscal 2006 level by
29% on a non-consolidated basis and by 27% for Toyota
Industries and its consolidated subsidiaries in Japan.

Good

Recycling

FY21 target:% reduction (vs FY06 level)

100

Water intake

In order to reduce water consumption, each of our
production bases has been promoting the recycling of water
through various means.
For example, U.S.-based production subsidiaryTD Automotive Compressor Georgia, LLC (TACG) has
introduced a system to recycle water used in various
processes and successfully reduced its annual water
consumption in fiscal 2019 by approximately 57,000 m3, or
36%, from the previous fiscal year.
Additionally, Toyota Material Handling Europe AB(TMHE), a consolidated subsidiary overseeing the materials
handling equipment business in Europe, has set a target
for its production and non-production companies to reduce
annual water consumption for the next three years, startingfrom fiscal 2019, by 10%.
Toward achieving this goal, Toyota Material Handling
Italia Srl. (TMHIT), a subsidiary engaging in sales andservicing of materials handling equipment in Italy, installed
water recycling equipment at one of its locations consuming
the largest amount of water and consequently reduced its
total annual water consumption by 80%.
We duly recognize the importance of water andwill continue to promote water conservation activities
corresponding to the conditions of each Toyota
Industries base.

Promotion of ESG Initiatives

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

The Higashichita Plant, an engine production base in Aichi
Prefecture, has been promoting the implementation of
measures to reduce resource consumption at the source.
For manufacturing engine components, the plant uses alarge amount of sand to create die casts and resin-bonded
casting sand cores. Sand waste accounts for the largest
portion of the plant’s total waste.
In fiscal 2019, the Engine Division and the Head
Office formed a collaboration team to reduce sand waste
generated in the process to create sand cores.
Conventionally, a sand core is created in three steps:1) feeding sand from the top of a molding machine,2) preheating (intermediate step) and 3) creating a sandcore at the bottom of the machine. When changing thetype of sand, the entire amount of sand already fed tothe intermediate step had been discarded. Focusing
on reducing this wasted sand, the collaboration teamincorporated a circuit to anticipate the number of sand cores
to be created at the timing of sand change and apply a sandsupply stopper so that only the required amount will be fed
to the intermediate step.
This improvement has resulted in a reduction of
approximately 54 tons of annual sand waste.

Introducing Water Recycling Systems

Strategies and Businesses

Waste Generation Volume

Summary (Production Activities)

Reducing Sand Waste from Foundry Process

Water is the basis of all life on the Earth and is an
irreplaceable and valuable resource. Every year, however,
we have been witnessing the increasingly severe impactsof droughts, floods and other natural disasters resulting
from climate change as well as shortages in drinking
water and agricultural water caused by the growth in
the world’s population. Many of the processes of Toyota
Industries use water for washing products and in thecoating process, and we regard the water supply crunch
caused by climate change and population growth as asignificant risk to our business activities.
In our aspirations in 2050, we set a goal of minimizing
the environmental impact on water resources. We haveidentified the status of water risks at each base andconsolidated subsidiary and have been undertaking
activities matched to their respective conditions with afocus on reducing water intake, promoting recycling andpurifying wastewater.

Promoting Reduction of Water Intake andRecycling

Company Introduction

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

Implementing Measures to Reduce
Resource Consumption at the Source

Our Approach (Water Resources)

Only the required
amount of sandis fed into themachine to create
the remaining
number of cores.
TMHIT improvement project members

21

69

Environmental Initiatives

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 thelatest trends in environmental laws and regulations on a global basis. At the same time, we have beenpromoting activities for conservation of biodiversity toward realizing a society in harmony with nature.

Our Approach (Substances of Concern)

FY2019 Results

36% reduction (vs FY06 level)

FY21 target:(vs FY06 level)*2: Committee to encourage collaboration among all sectors in Japan and promote
initiatives related to biodiversity for helping to achieve the Aichi Biodiversity
Targets, which represent the global targets for conservation of biodiversity

Many of the chemical substances needed for our production
activities may cause adverse effects on the environment.
Thus, appropriate
management of chemical
substances is crucial inensuring safe handlingand minimizing potential
harmful effects.
To appropriately
manage chemical
Study group session at aconsolidated subsidiary in China
substances contained

Summary Initiatives for Conserving Biodiversity
FY2019 Results
Under the Sixth Plan, we formulated a plan to connect
green zones by undertaking activities for the conservationof biodiversity throughout the Toyota Industries Group.
Accordingly, we have been collaborating with variousorganizations to carry out initiatives matched to the local
characteristics of regions where our plants are located.
In fiscal 2012, we joined the Chita Peninsula Ecological
Network Council, an initiative of the Aichi prefectural
government to promote the development of ecologicalnetworks within the prefecture. Since then, we have

Students who participated in a survey*1: A project jointly carried out by Aichi Prefecture, NPOs, companies and students withthe aim of forming ecological networks by leveraging corporate green zones of the
Chita Peninsula as well as developing young environmental leaders

Creating an Animal Path to Improve
Natural Habitats of Living Organisms
Recently, we have found that foxes are living in the wooded
area surrounding the Higashiura Plant in Aichi Prefecture.
But because there is not a large enough habitat, many werePlanting Mangroves
Employees of P.T. TD Automotive Compressor Indonesia(TACI), a production subsidiary in Indonesia, have beenplanting mangrove trees since 2013. As of fiscal 2019, a
total of 2,800 mangroves have been planted.
TACI will continue this activity and work to raise
environmental awareness for living in harmony with natureand preventing global warming.

Financial Section /Corporate Information

Strengthening Management of Chemical
Substances at Consolidated Subsidiaries
Outside Japan

Toyota Industries Report 2019

Every year, the Japan Committee
for United Nations Decade on
Biodiversity (UNDB-J)*2, in which
the Ministry of the Environment
serves as the secretariat, hosts
an award program to commend
projects that survey, conserve orrevitalize nature or living organisms
or those designed to conserve
regional culture, with the aim of passing down enrichedecosystems to future generations. The animal pathcreated within the Higashiura Plant garnered a prize in
the Protection category of the committee’s Biodiversity
Action Award Japan 2018.

36% reduction

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 andhave been striving to reduce VOC emissions.
In fiscal 2019, we continued our efforts to increase therecovery rate and enhance the maintenance and managementof thinner. Consequently, we were able to cut down emission
volume per unit of production in fiscal 2019 by 36%.

70

Toyota Industries’ Animal Path Winning a Prizein the Biodiversity Action Award Japan 2018

Promotion of ESG Initiatives

Emissions per unit of production(non-consolidated/automobile body)

Deforestation is now proceeding in various parts of theworld, causing the fragmentation of the habitats of livingorganisms. In order for humankind to live in harmony withnature, it is essential to protect nature in each region.
In our aspirations in 2050, we set a goal of generating
a positive influence on biodiversity and have been
conducting various business activities while continuously
paying attention to their impact on the naturalenvironment. We have also formulated the biodiversity
policy and been promoting initiatives accordingly. The
policy clearly stipulates that we seek to reduce the impactof our business activities on biodiversity and work withlocal communities for the conservation of biodiversity.

On the site of the biotope we developed in Aichi Prefecture
in fiscal 2013, we have been conducting surveys of livingorganisms since fiscal 2018 jointly with students under theLife Relay Project*1. In fiscal 2019, we conducted a total offour surveys, one in each season. Based on the results ofpast surveys, we discussed and implemented measureswith the students to encourage more diverse livingorganisms to populate the biotope.

TOPIC

Strategies and Businesses

Summary VOC Emissions (Production Activities)

Our Approach (Conservation of Biodiversity)

Conducting Surveys of Living Organisms
in Our Biotope Jointly with Students

fatally involved in traffic accidents on the neighboring roads.
To provide a safe passage between these wooded areas,
Toyota Industries created an animal path within the plantpremises and has been checking the inhabiting status. In
October 2018, six months after the creation of the path,
we observed foxes using the animal path for the first time.
We will continue to monitor the status while implementing
additional measures as necessary to create a better
environment.
Company Introduction

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 eachyear. How Toyota Industries responds to these regulations
will have a significant impact on the business activities weundertake in each country.
Based on this perception, we have been taking aforward-looking approach, anticipating fuel efficiency andemissions regulations to be enforced by each country andregion, and promoting product development accordingly.
In production activities, we have been working to reduce
emissions of volatile organic compounds (VOC), which
are causal substances of photochemical oxidants thatgenerate smog.

in raw materials and products, we have been assisting ourconsolidated subsidiaries and business partners outside
Japan in establishing a system to manage chemical
substances. In fiscal 2019, we provided such support to two
consolidated subsidiaries and several business partners.
We will continue to provide support and undertake
activities to prevent violations of chemical substances
regulations at production bases outside Japan.

been carrying out activities linked to the conservation of
biodiversity in the local natural environment in collaboration
with various stakeholders, including local governments,
companies, NPOs, expert bodies and students. Working
with the council, we established a biotope on companyowned idle land in Aichi Prefecture to create a network ofgreen zones in the surrounding areas in fiscal 2013 and an
animal path in the Higashiura Plant in Aichi Prefecture to
expand the habitat of foxes in fiscal 2019.

Planting mangroves
Notional image of connecting green zones

Fox using the animal path71

Environmental Initiatives

Environmental Management
Toyota Industries proactively discloses its initiatives for the reduction of environmental risk and otherenvironmental information.

Status of Compliance withEnvironmental Laws

https://www.toyota-shokki.co.jp/news/
release/2019/05/15/002408/index.html(in Japanese)

Environmental risk inspection

Norio Suzuki
Administration Department
IZUMI MACHINE MFG.
CO., LTD.
(As of March 31, 2019)

During the inspection, we worked with Toyota
Industries’ staff to identify environmental risks at
the plant boundaries. We routinely conduct checks
on our own, but seeing things through different
eyes helped us to both reduce environmental
risks and encourage the nurturing of internal staff.
We will continue our activities for the reduction ofenvironmental risks.

Green curtains of Haratechs Corporation

Shinjiro Nishikawa(left) and Emiko
Naruse (right)
General Administration
Department, Haratechs
Corporation(As of March 31, 2019)

During the Environmental
Strengthening Period in June,
KTTM and TIEI carried out various
activities to raise employees’
awareness, including giving
saplings to employees, planting
trees, handing out eco-bags andholding an environmental essay
contest. We participated in anenvironmental poster contest,
another such event, and werepleased to win awards. We hopethese activities will continue in the
future.
Let’s save the environment for
future generations!

Jayaprasad G A
Sheet Metal (KTTM)

AshwinEngine QC (TIEI)In fiscal 2019, we grew small melons and asweet variety of mini tomatoes in our company
vegetable garden as we had received requests from
employees for some sweet fruits or vegetables.
Melons and tomatoes survived heavy rains and theparticularly hot summer, and we were able to serve
them to everyone. Their smiles were very rewarding.

Financial Section /Corporate Information

For details, please visit our Website at:n Comments from KTTM and TIEI Award
Winners

Promotion of ESG Initiatives

As part of efforts to formulate its reorganization plan,
the Higashichita Plant voluntarily conducted soil andgroundwater surveys. The results showed that some
substances contained in soil and groundwater were
exceeding their standard values.
Based on the survey results, we will implement required
measures under the guidance of Aichi Prefecture, while
placing our utmost priority on not causing any impact on thesurrounding environment.

Every year, Toyota Industries carries out a three-month
Environment Strengthening Period from June to August withthe aim of increasing environmental awareness of Group
employees and their families through various events.
In fiscal 2019, as part of this initiative, we conducted
a “More Greenery” activity to increase flora and greenery,
including green curtains, at home and in the workplace. The
aim is to encourage employees and their families of Toyota
Industries and its Group companies to take an interest intrees, flowers and other plants and cultivate their awarenessto protect nature in their immediate environment.
We solicited photographs of flowers and greenery
planted under this activity and received about 30
applications. Photographs of excellent works were posted
on our intranet.

Our production subsidiaries outside Japan also carry out
a range of activities during the Environment Strengthening
Period.
In fiscal 2019, L.T.E. Lift Truck Equipment S.p.A. (LTE),
Toyota Industries Engine India Private Limited (TIEI) andKirloskar Toyota Textile Machinery Pvt. Ltd. (KTTM), and P.T.
TD Automotive Compressor Indonesia (TACI), production
subsidiaries in Italy, India and Indonesia, respectively, held
an environmental poster contest, soliciting entries from
employees and their families.
This is an activity already taken hold in Japan as
an event to raise environmental awareness. We haveintroduced the activity at our subsidiaries outside Japan,
where it has been adapted corresponding to each company.
We aim to raise environmental awareness within the
Toyota Industries Group by constantly extending the scopeof our awareness-raising activities.

Strategies and Businesses

Soil and Groundwater Pollution
Countermeasures

In addition to our own production bases, we are promoting
activities to reduce environmental risks at our manufacturingsubsidiaries in Japan.
In fiscal 2019, we conducted genchi genbutsu (goand see for yourself) environmental risk inspections atsuch subsidiaries to check facilities on their premises, theboundaries of their premises and the discharge outlets, aswell as examined how they were managed.
We will continue to monitor the status of their responses
to the identified issues and conduct risk inspections at our
subsidiaries on an ongoing basis.

“More Greenery” Activity (Japan)

 nvironmental Poster Contests
E(Outside Japan)

Company Introduction

In July 2018, there was one incident in which wastewater
discharged from the Higashichita Plant in Aichi Prefecture
exceeded the water quality standard values for phenol andchemical oxygen demand (COD).
In a survey, we found that cooling water used in thefoundry process leaked from the tank and was discharged
through a rainwater gutter. The leakage was caused by
the erroneous operation of the valve, which resulted in an
oversupply of industrial water into the cooling water tankthrough an unused pipe. As countermeasures, we removed
the unused pipe and started showing a warning sign on
an on-site irregularity display when the tank becomes fullso that employees can quickly notice it. We have alreadyreported the incident and our countermeasures to therelevant authorities.
Following the incident, we held a Company-wide
response meeting to report the countermeasures taken at
the Higashichita Plant and discuss what measures shouldbe implemented by other plants. By sharing necessary
information, we worked to prevent a recurrence throughout
Toyota Industries.
Preparing ourselves should an irregularity occur, we willcontinue to undertake and reinforce activities throughout
the Toyota Industries Group, such as emergency drills, tominimize the impact on the external environment.

Conducting Environmental Risk
Inspections at Production Subsidiaries
in Japan

Environment Strengthening Period in the
Toyota Industries GroupAward-winning posters from KTTM, TIEI and LTE

72

Toyota Industries Report 201973

Environmental Initiatives

Case Presentation at the Aichi Forum fora Low-Carbon Societyn GHG Emissions in Supply Chain (FY2019)
Scope 1
(0.5%)
Scope 2
(1.4%)
Scope 3 /Category 1(4.7%)

Scope 3 /Other
(1.2%)

Greenhouse Gas (GHG) Emissions in the
Supply Chain

Evaluation organizations

Emissions other thanfrom Toyota Industries’
business activities

Scope 1

Direct emissions from Toyota Industries through theuse of fossil fuels, etc.

Scope 2

Indirect emissions from the use of purchased energy
resulting from generation of electricity by power
plants, etc.

Scope 3Emissions associated with purchase of raw
materials, end use of Toyota Industries’ products bycustomers and disposal of productsn Scope 3 Emissions by Category (FY2019)
Purchased goods and services
Capital goods
Fuel- and energy-related activities not included in Scope 1 or 2

Waste generated in operations
Business travel

1

Employee commuting
Upstream leased assets

n List of External Environmental Awards

Award program(host organization)

ResultRecipient

Biodiversity Action
Award Japan 2018
(Japan Committee
for United Nations
Decade on Biodiversity(UNDB-J))Award winnerAnimal path at theHigashiura Plant

Fiscal 2019

CDP climate changeA

CDP water security

A

Nikkei’s Environmental
Management Survey

13th place

TOPIC
Selected as an A-List Company of the CDPSurveys
Toyota Industries was selected for the first time for the
A List, the highest rating, in surveys conducted by CDP
on climate change and water security to recognize
companies making outstanding efforts for mitigation ofclimate change and conservation of water resources.
The Toyota Industries Group defined its aspirations in
2050 in March 2016, and based on these aspirations,formulated the Sixth Environmental Action Plan, a fiveyear plan for the period from fiscal 2017 to fiscal 2021.
Our proactive activities under the plan have resulted in
the high rating. We will continue to tackle climate change
and water resource conservation as important tasks
and contribute to the realization of a sustainable society
through our global environmental conservation activities.

Note: See page 71 on the animal path.

TOPIC
Won the “Best Group Engagement” Award by
EcoVadis*
Toyota Material Handling Europe AB (TMHE), a
consolidated subsidiary overseeing the materials
handling equipment business in Europe, received the“Best Group Engagement” award from EcoVadis.
The award evaluates CSR activities of companies inthe environment and other fields and recognizes their
excellent performance and transparency.
* An international organization that evaluates the sustainability of supply chain
companies

Included in Scopes 1 and 2

Downstream transportation and distribution

From left to right:
Ralph Cox, Senior Vice President of Marketing and Sales;
Tom Schalenbourg, Sustainable Development Director;
Carina Strömberg, Sustainability Controller;
and Ernesto Dominguez, Managing Director of TMH France

Included in “Upstream transportation and distribution”

Processing of sold products

Not applicableUse of sold products

Financial Section /Corporate Information

Upstream transportation and distribution

Toyota Industries’ environmental activities to date have beenhighly acclaimed by external organizations. In fiscal 2019,
we received one external award.

Promotion of ESG Initiatives

Emissions from Toyota
Industries’ businessactivities

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

Scope 3 / Category 11(92.2%)We recognize that measuring the three scopes defined by
the GHG Protocol and turning the results into specific efforts
to reduce CO2 emissions are important in creating a lowcarbon society. Scopes 1 and 2 are GHG emissions fromour business activities, the former being direct emissions
from our use of fossil fuels and the latter being indirectemissions from the use of purchased energy resulting fromgeneration of electricity by power plants and other facilities.

External Environmental Evaluations

External Environmental Awards

Strategies and Businesses

At the Aichi Forum for a Low-Carbon Society hosted by
the Aichi prefectural government, we gave a presentationon our environmental initiatives. We explained our efforts
for achieving zero CO2 emissions during production atplants and during product use by customers, along with forbuilding a society in harmony with nature. These are two of
the goals of our aspirations in 2050, our medium- to longterm environmental vision.
We also participated in atalk session held on stage by
the presenters, exchanged
views on corporate
initiatives for the creation ofa low-carbon society andproactively appealed ourenvironmental initiatives to
Aichi Forum for a Low-Carbon Society
outside parties.

External Evaluations of Toyota
Industries’ Environmental Activities

Company Introduction

Scope 3 emissions are indirect emissions associated witheach product from the purchase of raw materials to end use
by customers and disposal.
In the fiscal 2019 results, combined Scope 1 and 2
emissions accounted for 1.9% of the total emissions, with
Scope 3 emissions reaching 98.1%.
The largest source of emissions, which accounted for
92.2%, was Category 11 (Use of sold products) under
Scope 3, followed by Category 1 (Purchased goods andservices) also under Scope 3, which accounted for 4.7%.
Going forward, we will continue to monitor GHG emissions
within the entire supply chain and accordingly promote CO2
emissions reduction activities.

End-of-life treatment of sold products
Downstream leased assets

Not applicableFranchises

Not applicable

Investments

Not applicable
1

10

100

1,000

10,000100,000

Calculated by using the emissions associated with employee business travel as the baseline set at 1

74

Toyota Industries Report 201975

Environmental Initiatives

Third Party Assurance of Environmental Performance Data
In order to ensure the transparency and accuracy of the information we disclose, the Toyota Industries
Group obtained third party assurance for its energy-derived CO2 emissions (Scopes 1, 2 and 3), waste
generation as well as water consumption and wastewater discharge volume data for fiscal 2019.

Verification by a Third Party

Toyota Industries obtained third party verification of its energyderived CO2 emissions, waste generation volume, water
consumption and wastewater discharge data for fiscal 2019.
On-site verification was performed by the verification
organization at two of our production bases in Aichi
Prefecture, namely, the Obu Plant and Anjo Plant, and thetransparency and accuracy of our environmental data havebeen confirmed through the verification.
Using the procedures specified by the verification
organization, Toyota Industries conducted verification at
the remaining eight production bases of Toyota Industries
as well as 13 consolidated subsidiaries in Japan and 21
consolidated subsidiaries outside Japan.
We will continue to utilize this third party verificationin making continuous improvements in our environmental
activities and disclose data to our stakeholders in a moretransparent manner.

Financial Section /Corporate Information

Financial Section
Consolidated Statements of Financial Position

P78-79Consolidated Statements of Profit or Loss

P80

Consolidated Statements of Comprehensive Income

P81

Consolidated Statements of Changes in Equity

P82-83

Consolidated Statements of Cash FlowsP84-85

Third party verification at the Obu Plant

Note: T oyota Industries has adopted International Financial Reporting Standards (IFRS) beginningfrom the end of fiscal 2017.

Third party verification at the Anjo Plant

Corporate Information

The verification statement of the third party organization is available at:https://www.toyota-shokki.co.jp/csr/environment/process/items/Verification2018_ENG.pdf

Directors, Audit & Supervisory Board Members,
Senior Executive Officers and Executive Officers

P86-87

Major Bases

P88-89Investor Information

P90

n Bases Subject to Verification

Category

Names of Bases and Subsidiaries

Non-consolidated

Kariya Plant, Takahama Plant, Nagakusa Plant, Kyowa Plant, Obu Plant, Hekinan Plant, Higashichita Plant,
Higashiura Plant, Anjo Plant, Morioka Works (Total of 10 bases)

Japan consolidated

Tokaiseiki, Tokyu, Altex, Iwama Loom Works, IZUMI MACHINE MFG., Miduho Industry, Nagao Kogyo, Nishina
Industrial, HANDA Casting, Unica, Haratechs, Aichi, Takeuchi Industrial Equipment Manufacturing (Total of 13 bases)

Consolidated subsidiaries
outside Japan

NVIC, Raymond-Greene, Raymond-Muscatine, TIEM, MACI, TACG, TICA, IHC, Cascade, TMHM, TIK, TACK, YST,
TIEI, KTTM, TACI, TIEV, TDDK, TMHMF, TMHMS, TMHMI (Total of 21 bases)
Total of 44 bases

76

Toyota Industries Report 2019Note:
For details on the consolidated financial statements, please refer to the financial results and securities report,
which are posted on the following Website: https://www.toyota-industries.com