Business Activities

Textile Machinery Strengths
Carrying on the philosophy offounder Sakichi Toyoda, whichreflects his strong commitment tomanufacturing, Toyota Industries
responds to a broad range of needs
with its extensive product lineup,from air-jet looms, for which we
enjoy the world-leading market
share* in unit sales, to ring spinning
frames and roving frames.

• Broad product lineup both in the spinning andweaving machinery fields• Global, well-developed service network• World-leading market share* in unit sales of air-jet
looms• Ability to develop products that excel in high-speed
operations, reliability and energy-saving performance

Opportunities• A rise in textile demand in line with an increase in the • Further increasing applications in industrial textile
world population
products• Increasing need for high-quality and highly functional yarn and textile products, following the economic
growth of emerging countries

Risks

Promotion of ESG Initiatives
Further Promoting Initiatives to Sustain
Growth in the Areas of Governance,
Society and the Environment
Relevant sustainable development goals(SDGs) for Toyota Industries• Changes in each government’s policies concerning • A decline in capital investment due to a drop in raw
promotion of the country’s textile industry
cotton and/or yarn prices• Economic slowdown• Weaker sales due to intensifying competition* Survey by Toyota Industries Corporation

FY2018Air-Jet Loom Sales

Net Sales(Thousand units)

10
8

4
2

FY20197.3 billion¥(FY) 15

16

17

18

19

The textile machinery market was weak in some countries in Asia but
remained strong in China. Unit sales of air-jet looms increased 2,700
units, or 43% year-on-year, to 9,000 units. Net sales were up ¥10.8
billion, or 17%, over the previous fiscal year to ¥76.3 billion.

Growing Needs for Air-Jet Looms
Toyota Industries’ air-jet looms are adopted by customers
in China, India and many other countries. Produced fabrics
are used broadly for towels, shirts and other clothing
purposes as well as in industrial products such as materials
for electronic substrates and vehicle airbags. Recently, an
increase in mobile electronic devices has driven the need for
fabrics of woven glass fiber for use in electronic substrates,
and it is anticipated that applications for air-jet looms will
expand further. On the sales front, the recent adoptionof more stringent water quality regulations in China has
prompted demand to replace water-jet looms with air-jet
looms. In response, we plan to expand sales of air-jet looms
by appealing their high environmental performance.

Reinforcing Position as a Leading
Manufacturer of Quality Measurement
Instruments for Fiber, Yarn and FabricUster Technologies AG, a Swiss-based consolidated
subsidiary manufacturing quality measurement instruments
for fiber, yarn and fabric, made Israel-based Elbit Vision
Systems Ltd. (EVS) into a subsidiary in 2018. EVS develops
and produces inspection instruments for textile fabrics. The
acquisition has made Uster the world’s only* manufacturer
to offer quality measurement instruments for every stageof textile products from raw cotton to yarn and fabrics.
Capitalizing on this unique strength, Uster intends to further
reinforce its position as a leading manufacturer of quality
measurement instruments for fiber, yarn and fabric.

4276.3 billion¥

FY2018Operating
Profit¥6.1 billion

Business Overview in Fiscal 20196

0¥65.5 billion

FY2019Toyota Industries Report 2019

Taking Part in the Largest International
Textile Machinery Trade Show in Asia
In October 2018, Toyota Industries participated in ITMA ASIA
+ CITME 2018, Asia’s largest international textile machinery
trade show. The show was held in Shanghai, China, which isone of the largest textile markets in the world.
At Toyota Industries’ booth, we exhibited the JAT810
air-jet loom equipped with our original electronic shedding
device, and the demonstration of the high-speed weavingof complex-patterned fabrics was well received by many
visitors. We also displayed special design yarn samples
created by the RX300 high-speed ring spinning frame toshowcase its versatility to produce various types of yarn
from ordinary to decorative yarn.
At Uster’s booth, EVS’s fabric inspection instrument was
exhibited for the first time under the Uster brand, along with
Uster’s yarn quality measurement instruments, and drew theattention of many visitors. Through various textile machinery
exhibitions, we will continue to appeal to customers ourtechnological capability to meet their needs and reinforce
our brand strength to gain greater trust from them.

Uster’s booth bustling with many visitors

Corporate GovernanceP44–50Relationship with Our Stakeholders

P51–60

Environmental Initiatives

P61–76

Staff who participated in the trade show

43

Corporate GovernanceCorporate GovernanceCorporate Governance StructureInternal Control System
ComplianceManagement of Confidential Information
Risk Management

P44–45
P46
P46–48P49
P49–50Toyota Industries strives to enhance its corporate value in a stable manner over the long term and maintains society’s
trust by earnestly fulfilling its social responsibilities in accordance with its Basic Philosophy. To that end, Toyota Industries
endeavors to further enhance its corporate governance in its efforts to maintain and improve management efficiency andthe fairness and transparency of its corporate activities.

Basic Perspective on Corporate Governance

Implementation Structure
Toyota Industries convenes monthly meetings of the Boardof Directors to resolve important management mattersand monitor the execution of duties by directors. We also
appoint outside directors who have a wealth of experienceand knowledge concerning business management. They
attend meetings of the Board of Directors and give opinions
and ask questions as deemed necessary. Through thissupervisory function of outside directors, we ensure thelegality and validity of the Board’s decisions as well as
directors’ execution of duties from an objective perspective.
The Management Committee, which is composed of
directors at the executive vice president level and above
as well as senior executive officers and other executives,deliberates on a variety of issues concerning important

Shareholders’ Meetings
Selection/Dismissal

Reporting

Cooperation

Independent Auditors

Accounting
Audit

Executive Compensation
Committee

Selection/Dismissal

Reporting

Audit & Supervisory Board
Board of Directors

ReportingExchange of Opinions

Executive Appointment
Committee

Appointment/Monitoring

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

Management Council

Selection/Dismissal
Cooperation

Audit & Supervisory
Board Office
Cooperation

Direction/
Supervision

Monitoring*1: Functional
Meetings

President

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

Discussion/
ReportingMonitoring

Human Resources

CSR

Quality

Environmental

Production

Export Transaction
Controls

Procurement

Safety and HealthTechnologies

Profit Improvement

Reporting
Audit Dept.

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

Functional Meetings*1, Committees*2
Senior Executive Officers

Business Divisions/In-House Company/Departments
Subsidiaries/Affiliates(As of June 11, 2019)
Toyota Industries’ Corporate Governance Reports are available at: https://www.toyota-shokki.co.jp/ (in Japanese).

44

Toyota Industries Report 2019

*2: Committees

These entities deliberate andfollow up on issues in respective areas.

As our policies concerning selection (and dismissal) of senior
management and appointment of director candidates, we
carry out comprehensive evaluations from the viewpointof placing the right persons in the right positions. We seeka balance between making sound and quick decisions,managing risk appropriately and monitoring execution ofbusiness operations and covering a specific function orbusiness division of Toyota Industries.
In appointing audit & supervisory board member
candidates, we also perform comprehensive evaluations
from the viewpoint of placing the right persons in the rightpositions, while ensuring a balance among the financial,accounting and legal insights, knowledge on our businessfields and the diversity of perspectives on corporate
management.
Based on these policies, we review proposals, exchange
views and confirm details at the Executive Appointment
Committee, which includes independent outside directors,
and submit these proposals to the Board of Directors forresolution.

Appointment of Independent Members ofManagement
As a publicly listed company, Toyota Industries strives toensure the fairness and transparency of management.
Following the Securities Listing Regulations stipulated by
the Tokyo Stock Exchange and Nagoya Stock Exchange,

Evaluation of the Effectiveness of the Board of
Directors
Through interviews with outside directors and audit &supervisory board members, Toyota Industries asks themto evaluate the effectiveness of the Board of Directors andcollects their feedback. The results of their evaluation aresummarized below.
(1)	Appropriate decision-making and management
oversight are ensured by holding several discussions
on important matters and following up on the progress
after the resolution of these important matters.
(2)	The atmosphere is open, encouraging directors tofreely make comments and engage in lively discussion.
(3)	Meeting materials are simple and clear, andexplanations are right to the point.
As shown above, Toyota Industries’ Board of Directors
has been evaluated as effective. We will continue to makeefforts for further improvement.

Audit & Supervisory Board System
Toyota Industries has adopted an audit & supervisoryboard system. Two full-time audit & supervisory board
members and two outside audit & supervisory board
members attend meetings of the Board of Directors tomonitor the execution of duties by directors. At the sametime, meetings of the Audit & Supervisory Board are held
once a month to discuss and make decisions on importantmatters related to auditing. The full-time audit & supervisoryboard members carry out auditing by attending primary
meetings and receiving reports directly from directors.
Additionally, we have assigned dedicated personnel, while
audit & supervisory board members monitor the legality

Financial Section /Corporate Information

Selection/Dismissal

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

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

Promotion of ESG Initiatives

Toyota Industries regards the most important managerial
task is to earn trust broadly from society and enhance ourcorporate value on a stable, long-term basis. We aim to do
this by implementing our Basic Philosophy, which consistsof “Respect for the Law,” “Respect for Others,” “Respect
for the Natural Environment,” “Respect for Customers”
and “Respect for Employees,” and by earnestly fulfilling oursocial responsibilities. Our basic focus is on contributing
to the creation of an enriched society through businessactivities, and we believe it is essential to cultivate good
relationships with stakeholders, including shareholders,customers, business partners, creditors, local communities
and employees.
Accordingly, we strive to enhance our corporate
governance in order to maintain and improve management
efficiency, fairness and transparency. For example, wehave established a structure to quickly and flexibly respondto changes in the business environment and have beenworking to augment management oversight and ensure thetimely disclosure of information.
More specifically, the following basic policies drive ourinitiatives.
(1) We seek to ensure shareholders’ rights and equality.
(2)	We seek to promote appropriate collaboration with

Determination of Compensation for Senior
Management and Directors

Strategies and Businesses

stakeholders other than shareholders (including
customers, business partners, creditors, local
communities and employees).
(3)	We seek to conduct appropriate information disclosureand ensure transparency.
(4)	We seek to perform the roles and duties of the Boardof Directors appropriately in order to make decisions in
a transparent, fair, quick and resolute manner.
(5)	We seek to promote a constructive dialogue withshareholders.

respectively, to further enhance our corporate governanceToyota Industries has appointed as independent membersof management two outside directors and two outside audit& supervisory board members who are deemed to have noconflicts of interest with our shareholders.

Company Introduction

Corporate Governance Structure

management matters such as our corporate vision,
management policies, medium-term business strategies andmajor investments.
Toyota Industries has a divisional organization system,with significant authority delegated to each businessdivision. For especially crucial matters, however, we haveestablished the Business Operation Committee to enable
the president to meet with the heads of each businessdivision regularly to monitor and follow the status of theirbusiness execution. At meetings of the Management
Council, directors, audit & supervisory board members andsenior executive officers convene to report and confirm themonthly status of business operations and share overall
deliberations at Board of Directors meetings and othermanagement-related information.
In addition, issues pertaining to human resources,quality, production, procurement and technologies are
discussed at the corresponding functional meetings. We
have also put in place committees to deliberate on more
specific matters, such as corporate social responsibility(CSR), the environment and export transaction controls.
These functional meetings and committees discuss
important matters and action themes in respective areas.
Moreover, we strive to maintain and improve internal
controls by establishing the Audit Department andconducting internal audits of Toyota Industries’ businessdivisions and departments as well as our subsidiaries.

45

Corporate Governanceand efficiency of management through collaboration withindependent auditors and the Audit Department.
Initiatives for Enhancing Corporate GovernanceWe believe that compliance means both adhering to laws
and regulations as well as ethics and social norms. In orderto ensure compliance, it is vital to instill an awareness ofcompliance in each and every employee.
Under the strong leadership of top management, we
promote compliance throughout the Toyota Industries
Group by formulating a Code of Conduct and thoroughly
informing employees together with checking and monitoring
compliance.

Declaration by the president
Compliance Subcommittee

2 Formulating Rules

Employee Code of Conduct
Internal rules

Informing
3 Thoroughly
Manuals
Employees

Education on relevant laws and regulations

and4 Checking
Monitoring

Establishment and Reinforcement of
Implementation Organization
To promote compliance throughout the Toyota Industries
Group, we have established the Compliance Subcommittee(led by the head of the Corporate Headquarters) as asubordinate organization to the CSR Committee. Every year,
the subcommittee formulates an action plan and conducts afollow-up check on the progress of corresponding activities
twice during that year.
Organization for Promoting Compliance

Activity reports

Toyota Industries Report 2019

As for antitrust laws, in fiscal 2019 we reviewed ourantitrust law compliance structure, including an emergency
response structure and related regulations. Additionally,
we continue to operate a system to conduct a check andreview before and after employees of Toyota Industries
contact competitors and conduct enlightenment activities
during our antitrust law compliance month. In this way, we
aim to ensure thorough compliance with antitrust laws.

Thoroughly Informing Employees about Applicable
Laws and Regulations

Departments in charge of legal compliance: 11
Supporting department: 1

Internal Control Audit Report

Audit on internal controls by independent auditors

Educational material on bribery
prevention in English

Action plans

Compliance Subcommittee

Toyota Industries
Corporation

Educational material on bribery
prevention in Japanese

Consolidated subsidiaries
in Japan

Consolidated subsidiaries
outside Japan

Compliance committees

Compliance officers

Toyota Industries provides required legal knowledge toemployees according to their job ranks or positions,familiarizing them with the initial responses that should be
followed upon the occurrence of a problem and educatingthem on risk management. To increase complianceawareness, we also provide guidance on the Toyota
Industries Corporation Employee Code of Conduct throughnew employee education, rank-based education andworkplace meetings.
We have created and disseminated e-learning material
on one specific topic every month in order to cultivate adeeper understanding of compliance among employees

Management of confidential information; Import controls;
Prevention of misconduct; Safe and correct use of ladders andstepladders; Basics of contracts; Clear communication; Basics
of quality; Points to be noted when making money transfers orbank transfers; Commuting accidents; Blocking relationships
with antisocial forces

Early Detection and Prevention of Issues via
Compliance Hotline
The Toyota Industries Group has in place a whistle-blower
system for employees and their families (including suppliersin Japan) to report and seek consultation on compliancerelated issues. In Japan, North America, Europe and China,
in particular, we operate a compliance hotline (external
helpline) that allows employees and their families to seek
advice from external experts on compliance-related matterswithout being exposed to negative consequences. In fiscal
2019, we received 86 reports and inquiries from within
Toyota Industries and from its consolidated subsidiaries
in Japan on such matters as labor management, working
environment and ethics. After verifying each report andinquiry, we have taken appropriate action regarding eachcase. Our responses have been reviewed and judged
appropriate by external lawyers.
Through these initiatives, we ensure the early discovery
and prevention of issues and intend to become a “company
on which society places greater trust.”

Activities in the Toyota Industries Group Each company of the Toyota Industries Group has set
up a compliance committee (in Japan) and appointed acompliance officer (outside Japan) in an effort to promoteautonomous activities in respective communities incollaboration with the Compliance Subcommittee. In fiscal
2019, we continued to carry out activities in line with local
needs.

Financial Section /Corporate Information

CSR Committee

Annual financial report

Internal Control Report46

CSR self-assessment
Audit

Example Topics of e-Learning Materials in Fiscal 2019

Promotion of ESG Initiatives

Internal Control Assessment System (Based on J-SOX)

1 Leadership/
Organization

Toyota Industries has formulated and distributed to
executives and all employees the Toyota Industries
Corporation Employee Code of Conduct, which serves asconduct guidelines that should be observed by employees.
Consolidated subsidiaries in and outside Japan (31 in Japanand 79 outside Japan) have formulated their own Codeof Conduct appropriate to their respective business lines
and corporate cultures and have been working to instill anawareness among their employees.
Simultaneously, to prevent significant risks of bribery
and violations of antitrust laws, in addition to the Code of
Conduct we have formulated corresponding regulations
and been undertaking activities to familiarize employeeswith these regulations. Regarding bribery, Toyota Industries
formulated the Global Guidelines for Bribery Prevention.
Particularly, in countries with a high risk of bribery, eachcompany has developed internal rules in accordancewith the applicable laws in respective countries and been
conducting activities to familiarize employees with them. In
fiscal 2019, to support bribery prevention education at ourconsolidated subsidiaries in and outside Japan, we createda video in Japanese, English, Chinese, Spanish, Portuguese,Indonesian, Vietnamese and Thai.

of Toyota Industries Corporation and our consolidated
subsidiaries in Japan and to create an environment in which
employees foster compliance consciousness on their own.
In fiscal 2019, we invited external lawyers to holdexecutive legal seminars on “points to be noted in relation
with labor issues (work style reforms, various forms ofharassment, etc.)” for directors, managing officers and audit& supervisory board members.

Strategies and Businesses

In accordance with the Companies Act, in May 2006 Toyota
Industries’ Board of Directors adopted the Basic Policies
for the Establishment of an Internal Control System (Basic
Policies) to ensure compliance, risk management as well as
the effectiveness and efficiency of business operations by
incorporating these policies into each business segment’s
annual policies and day-to-day routine management. The
CSR Committee, at its meeting held in March, assesses the
progress made in implementing the Basic Policies in theyear under review and determines actions for the coming
year, including reviewing the implementation structure andenhancing day-to-day operational management.
Furthermore, based on the Financial Instruments andExchange Law (so-called Japanese Sarbanes-Oxley Act(J-SOX)), we have established and appropriately operated
an internal control system to maintain the reliability offinancial reporting. The system’s status and progress
are reviewed by the Audit Department and audited byindependent auditors. We determine which Toyota Industries
Group companies fall within the scope of J-SOX based on
the degree of impact on the reliability of financial reporting.
We determined that our internal controls over financial
reporting as of the end of fiscal 2019 were effective, andaccordingly, submitted an Internal Control Report in June
2019. The report was reviewed by independent auditors andjudged fair in their Internal Control Audit Report.

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

Basic Elements of Compliance Activities

Basic Elements of Compliance Activities

Internal Control System

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

Formulation of Code of Conduct and Dissemination

Company Introduction

1971 Introduced a divisional organization system
2006 Reduced the number of directors (from 30 to 17)
2006 Introduced a managing officer system
2010 Appointed independent members of management
2016 Reduced the number of directors (from 17 to 11)2017	Conducted an evaluation of the effectiveness of the Boardof Directors
2019	Revised executive management structure and reduced thenumber and rank of executives

Compliance

Activities in North America We held the Compliance Officer Conference in North
America with the participation of compliance officers from19 companies. Topics included cases that provide good
examples of our response to reports made by whistleblowers, response to the leakage of confidential information
and reaffirming the need to comply with antitrust laws. Afterthe conference, these 19 companies have been conducting
activities in a mutually coordinated manner.

47

Corporate Governance

Activities in Europe 
In Europe, we held the Compliance Conference withfour major companies, including Vanderlande Industries
Holding B.V., which became a subsidiary in fiscal 2018, toincrease related knowledge and responsiveness by sharing
compliance activities of each company and carrying out
case studies of initial response to an emergency. As a tool
to support compliance officers, we have developed anddistributed a new checklist to evaluate the progress incompliance activities and encourage improvements.

Activities in Asia, Oceania and South America In fiscal 2019, we reaffirmed with compliance officers ofeight companies in Asia the roles and abilities requiredof compliance officers. We strive to raise complianceawareness of employees and deepen their understanding
regarding bribery prevention and response to reports madeby whistle-blowers.
In India, we held the Compliance Officer Conference withthree companies in India to share the progress of and issues
in compliance promotion activities of each company anddiscuss future activities.

Management of Confidential Information
Basic Perspective

Activity Examples

Activities up to fiscal 2018
Compliance Committees (in Japan) and Compliance Ofﬁcers (outside Japan) (As of March 31, 2019)38 companies

Compliance officer
in China (TIMC)

Andreas Lundh

Zhu Lingling

North America:

China:

21 companies

7 companies

Compliance officer
in North America(TINA)

Sheena Seger

Japan:

31 companies
Compliance officer
in Indonesia (TACI)

Raharjo Hardiyanto

New activities in fiscal 2019

Asia, Oceania and South America:

13 companies

TINA: Toyota Industries North America, Inc.
TMHE: Toyota Material Handling Europe AB
TIMC: Toyota Industries Management (China) Co., Ltd.
TACI: P.T. TD Automotive Compressor Indonesia

48

Toyota Industries Report 2019

• Checking the status of confidential information management at
Purchasing departments• Strengthening the security of production bases• Extending the target group of participants
for incident/accident response training
from the General Administration
Departments of the Head Office andeach plant and Engineering, Production
Engineering and Purchasing departments
to Planning and Sales departments
Incident/accident response training
within each business division, etc.

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

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

Financial Section /Corporate Information

Europe:Compliance officer
in Europe (TMHE)

Activities by Toyota Industries• Rank-based group education• Restrictions on taking photographs on company premises• Attaching a security cable with a lock to all PCs to prevent
unauthorized removal off the premises• Restricting the copying of electronic data on recording media• Monitoring of email correspondence• Requiring employees to sign a confidentiality agreement uponretirement• Verifying the status of confidential information management at
Engineering and Production Engineering departments• Providing training on response to targeted attacks through e-mailActivities in collaboration with other Toyota Group companies• “Information Security Awareness Month” activities in May andOctober to raise employee awareness and conduct auditing by
checking off-the-premises removal of PCs and recording media, etc.

Risk Management

Promotion of ESG Initiatives

Compliance Officer Conference in China

We recognize that the personal information of customers,
employees and business partners as well as information
concerning our technologies and sales activities are assetsthat need to be protected. Accordingly, we are making ourutmost efforts to safeguard confidential information andstrengthen its management as one of the CSR areas.

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

Strategies and Businesses

Compliance Officer Conference in India

Toyota Industries has set up the Information Security
Subcommittee (led by an executive in charge of the General
Administration Department) as a subordinate organization
to the CSR Committee to promote proper management ofconfidential information, taking appropriate actions against
the risk of leakage of confidential information and complying
with laws such as the Unfair Competition Prevention Act andthe Act on the Protection of Personal Information.
To thoroughly implement the initiatives adopted by thesubcommittee, we appoint information security managers*1
and information security administrators*2 at eachdepartment. We strive to raise awareness about information
security among their staff by holding workplace meetingsand conducting self-checks regarding their information
security practices.
In fiscal 2019, to counter risk for leakage of confidential
information we implemented the following initiatives.
(1)	Verify the status of confidential information
management at each workplace		On-site inspection at and improvement guidance toPurchasing as well as Engineering and Production
Engineering departments(2)	Strengthen the security of production bases
		Enlightenment activities to prepare for cyber attacks
against our production bases and implementation ofrequired measures at production lines
Our consolidated subsidiaries in and outside Japan
also appoint respective information security managers
and information security administrators. We have also
developed common guidelines concerning management ofconfidential information, which have been distributed among

these subsidiaries, and follow up on their activities on aperiodic basis in our efforts to raise the level of confidential
information management throughout the Toyota Industries
Group.

Company Introduction

Activities in China 
In China, compliance officers from 10 companies attended
the Compliance Officer Conference. Through the creationand dissemination of educational materials for use at allbases in China as well as by comparing and re-examining
the rules of each company, we work to raise complianceawareness of employees and formulate and improve
appropriate rules on an ongoing basis.

Implementation Structure

Response to Possible Major Earthquake
We consider the impact of a major earthquake as one of
the most significant risks and have accordingly formulated
a business continuity plan. Based on the three basic
policies of placing maximum priority on human life, placing

49

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

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