Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Taking the Initiative for Growth – 2Taking the Initiative for Growth – 2

Contributing Both in Terms of Product Development andProduction to the Establishment of a Carbon Neutral Society

Reducing CO2 Emissions in Product Development
Toyota Industries develops products with excellent environmental performance by sharing and encouraging the evolution oftechnologies and know-how of each business, mainly the Materials Handling Equipment Business and the automobile-relatedbusinesses.
This section highlights our efforts related to electrification, which is key to developing products that can reduce CO2 emissions.

Environmental Vision 2050

As one tenet under our Basic Philosophy, Toyota Industries works to contribute tomaking the earth a better place to live and enriching lifestyles and also strives to offer
products and services that are clean, safe and of high quality. Accordingly, we haveestablished the Global Environmental Commitment, a specific environmental action
guideline, and have been sharing and implementing it throughout the Toyota
Industries Group.
We recognize that contributing to the establishment of a carbon neutral society isan important issue under the commitment. As such, we have been promoting
initiatives in various fields, such as electrification, weight reduction, energy savings
and adoption of renewable energy sources in seeking to realize a zero CO2 emissions
society in 2050.
Aiming at building a sustainable society
which enables the harmonious coexistence ofnature with our daily lives

Toshihiko Shimizu
Senior Executive Officer
Head of the Production Engineering
Development Center, Die Engineering
Center, Quality Control Dept. and Plant
Engineering & Environment Dept.,
Production Headquarters(As of March 31, 2021)

Environmental risk
reduction
Society in harmony
with nature
Carbonneutral society(1) Establishing a carbon neutral society Globally take on challenge of establishinga zero CO2 emissions society(2) Establishing a recycling-based society Take on challenge of minimizing the use ofresources

Recyclingbased society

Environmental Management
Notional Diagram of Global Environmental Commitment

Review of the Sixth Environmental Action Plan
— Establishing a Carbon Neutral Society —Positioning the establishment of a carbon neutral society as
our most crucial environmental issue, Toyota Industries has
been carrying out production activities with a constant focus
on saving energy. At the same time, we have accelerated thedevelopment of more environment-friendly products.
Under the Sixth Environmental Action Plan, a five-yearplan implemented from fiscal 2017 to fiscal 2021, our two
primary action policies were to “develop products andtechnologies possessing the utmost level of environmentalperformance” and “develop and introduce productionengineering technologies with lower CO2 emissions and utilize
clean energy.” We have steadily undertaken tasks definedfor each policy and successfully achieved respective targets.
Please see pages 62−63 for details.

(3)	Reducing environmental risk and establishinga society in harmony with nature 		
Generate positive influence on biodiversity(4) Promoting environmental management Enhance consolidated environmental
management and promote enlightenment
activities

Approach of the Seventh Environmental
Action Plan
— Establishing a Carbon Neutral Society —We have formulated a next plan, the Seventh Environmental
Action Plan covering five years from fiscal 2022 to fiscal 2026.
With regard to products, we will emphasize reduction ofCO2 emissions as early as from the technology development
stage while further pursuing better energy-saving
performance, lighter weight and development of technologies
responding to electrification. In terms of production, while
making all-out efforts to save energy, we will define a global
target of total CO2 emissions and work toward the target sothat we can curb emissions as we expand business. Inaddition, we will actively adopt renewable energy sources on
a global basis by setting a target introduction rate. Please see
pages 64−65 for details.

Steady Progress in Five Years
FY201722FY2018

FY2019FY2020

FY2021

Certified as anenvironment-friendly
product (gene B)

Certified as anenvironment-friendly
product (towingtractor)

Opened H2
PLAZA Hydrogen
Station(Takahama Plant)

Added a 1.8-tonmodel to the lineup
of fuel cell (FC) lift
trucks

Oxygen-supplying
air compressor forFCEVs

Saved
energy byusingintermittent
air blow

Energy-saving equipment
utilizing karakuri mechanicalsystems winning a Good Idea
Award in the Karakuri KAIZEN
Exhibition

Reduced energy used in avehicle painting dry-off oven

Achieved a zeroCO2 emissionsplant for the firsttime in the Group(TMHMS)

Portion heatedneeds heating
Reduced CO2
emissions by creating Before Heating processes
improvement
energy-saving
Consolidatingproduction lines linked
After
to product designs improvement

Toyota Industries Report 2021

PartBefore
improvement

Hot airoutlets

Afterimprovement

Exhaust outlets

Hot air outlets
Exhaust outlets

Portion thatEnvironment-Friendly Products

Materials Handling Equipment

Electric lift truck
Electric lowlift truck
Reach-type lift truck equippedwith lithium-ion batteries

FC lift truck

Car Air-Conditioning Compressor
Variable-displacement
type compressor(for internal-combustionvehicles)

Electric compressor(for HEVs, PHEVs,BEVs and FCEVs)

Releasing environment-friendly
products in each business field

Charging stand for
PHEVs and BEVs

DC-DC converter

Oxygen-supplying aircompressor for FCEVs

Hydrogencirculation pumpfor FCEVs

AC inverter

Electronics

On-board charger

Automobile-Related Businesses
We develop and manufacture devices for a range of electrified vehicles, from hybrid electric vehicles (HEVs) to fuel cellelectric vehicles (FCEVs), and enjoy the world’s top share*1 in the car air-conditioning compressor and electronics fields.
*1: Survey by Toyota Industries Corporation

Car Air-Conditioning CompressorLP roviding Products with Excellent Energy-Saving
Performance
Sales of various electrified vehicles,including HEVs, plug-in hybrid electricvehicles (PHEVs), battery electricvehicles (BEVs) and FCEVs, areincreasing in line with the growing
need for car electrification.
Car air-conditioning compressors
mounted on these electrified vehicles
Tomoji Tarutani
also need to be electric, and the mostGeneral Manager, Engineering
Dept., Compressor Division
important aspect of their performance(As of March 31, 2021)
is electric efficiency, which is directly
linked to the cruising range.
Besides requiring the same level of precision processing
and assembly technologies used for conventional compressors
for internal-combustion vehicles, electric compressors need
another important technology to ensure compatibility with
newly added electronic components. Taking advantage of ourstrengths in these technologies, we have successfully achieved
high electric efficiency performance.
Since being adopted in thePrius of Toyota Motor Corporation(TMC), we have been providing
compressors for various electrified
vehicles of automakers in andoutside Japan for about 20 years,
accumulating a pool of related
technologies and know-how along
ESB20 electric compressor
the way. Additionally, as BEVs facea problem of lower electric efficiency when a heater is turned on,
we have developed a compressor for heat pump air conditioning
systems to help improve electric efficiency while heating.

LC ompressors Also Used for Cooling Key Components
In recent years, following car electrification and widespreaduse of autonomous driving technology, there has been agrowing need to cool electronic devices, batteries and otherkey heat-emitting components. In response, we havedeveloped a large-capacity model used not only for vehicle
interior air conditioning but also for cooling those keycomponents. As products in this field relate to the driving
performance of automobiles, we believe that the reliability ofour products will serve as an even greater strength of Toyota
Industries.
LU tilizing Compression Technologies to Provide Drive
System Components
For FCEVs, which are a type of electrified vehicle thatgenerates electricity through a chemical reaction of hydrogenand oxygen, we have applied compression technology of car
air-conditioning compressors and developed such products
as an oxygen-supplying air compressor, which efficientlycompresses and supplies oxygen. The product is alreadyfitted in the MIRAI.
By leveraging our elemental technologies, we intend toincrease our role in the fields that relate to the driving
functionality of FCEVs, which are said to be the “ultimateeco-car.”Products Utilizing Compression Technologies

Oxygen-supplying air compressor

Hydrogen circulation pump23

Company Introduction

Materials Handling
Equipment

Automobile

Electronics

L Further Improving Environmental Performance of PowerSource Devices and Helping to Promote Electrificationin Each BusinessIn the field of car electronics, wedevelop and manufacture on-board
power source devices, including
DC-DC converters, on-board chargers
and AC inverters, and charging stands
by utilizing power electronics as thecore technology. By selling theseproducts to automakers, mainly TMC,
Takashi Kubooka
we are working to contribute to theGeneral Manager, Engineering
Dept., Electronics Division widespread use of electrified vehicles.
(As of March 31, 2021)
The progress in car electrification
and automation has raisedElectronics

TextileMachinery

Materials Handling Equipment Business*2: Survey by Toyota Industries CorporationL Offering Trucks Equipped with Lithium-Ion Batteries or
Fuel Cells
In addition to the conventional electric lift truck, in 2016 welaunched a lithium-ion battery installation type thatsignificantly shortens the battery charging time. The truck
does not require the replacement of heavy batteries, which
can reduce the burden on the operator.
In the same year, an FC
lift truck was released. TheFC system installed in thisproduct was developed forrealizing the features of thelift truck, utilizing the fuelcell used in the MIRAI
developed by TMC. InFebruary 2021, weCompact FC module
developed a new generalpurpose small fuel cell
Lead-Acid Battery Type

Equipped with aninternally developed
high-efficiency
motor, etc.
Lower energy cost
resulting fromlonger uptime

Haruhiko Otsuka
General Manager, Engineering Dept.,
Toyota Material Handling Japan(As of March 31, 2021)

module. This module packages FC system components forthe generation of electricity and achieves high power
generation efficiency. It’s also relatively easy to install invarious existing engine-powered products. In the future, weaim to supply the module as a stationary power generator toplants and commercial facilities and install it in industrial
vehicles and buses.
L Efforts to Increase the Percentage of Electrification ofLarge Models
The electrification rate of the entire lift truck market has
already exceeded 60%, but the electrification of large models
has not progressed much due to the lack of power comparedwith internal-combustion models. Toyota Industries will utilize
its key component technology cultivated in electronics as wellas truck control technology to advance the development ofhigh-output and high-voltage components and improve theelectrification of large models.

Lithium-Ion Battery Type

Fuel Cell Type

Much shorter
charging time

No CO2 emissions
while in operation

Less burden of battery
replacement

Excellent environmental
performance

Equipped with T_Site
telematics as standard foreasier fleet management

Enhanced convenienceof completing fuelcharging in threeminutes

Promotion of ESG Initiatives

Corporate Information

Taking the Initiative for Growth – 2

expectations for more diverse power source devices withhigher performance (higher efficiency as well as size andweight reduction). Accordingly, we will pursue even higher
environmental performance and expand the scope of ourdevelopment efforts to power source system products.
Moreover, we are seeking to improve environmental
performance by applying the technology and know-how
accumulated in the development of power source devices toour other products, such as materials handling equipment
and textile machinery. Our plan is to increase our contribution
to the establishment of a carbon neutral society by promoting
electrification in each business field, including car electronics.

Toyota industries offers a wide range of industrial vehicles such as towing tractors, low lift
trucks, automatic guided vehicles (AGV) and lift trucks, which have the global top market
share*2. Since releasing our electric lift trucks to the market in the 1970s, many products
have been electrified, and we are working to strengthen the competitiveness of our products
through in-house production of key components such as motors, inverters and electronic
control units (ECU).

Strategies and Businesses

Reducing CO2 Emissions in Production Activities
The two pillars of Toyota Industries’ efforts to reduce CO2 emissions in its production activities are promoting thoroughenergy savings and utilizing renewable energy. The following shows examples among such efforts in this area.
L Promoting Thorough Energy Savings
In implementing thorough energy savings,
we are making proactive, Company-wide
efforts to “develop and introduce productionengineering technologies with lower CO2emissions” and “fully implement
improvement activities on a daily basis.” For
the former, the Nagakusa Plant, a vehicle
assembly plant in Aichi Prefecture,undertook an improvement project with a2019 Energy
focus on minimizing the amount of heat
Conservation Grand
used in a painting dry-off oven andPrize
suppressing heat dissipation, thus
successfully achieving lower energy loss and a subsequent,drastic reduction in CO2 emissions. The project won the 2019
Minister of Economy, Trade and Industry Award in theIndustrial Field, which is the highest award in the Energy
Conservation Grand Prize program (Energy Saving Projects
Category) run by the Energy Conservation Center, Japan.
L Utilizing Renewable Energy
As part of an effort to utilize renewable energy, we areproactively introducing clean energy.
Toyota Material Handling Europe AB (TMHE), a subsidiaryserving as the regional headquarters of the materials handlingequipment business in Europe, has formulated a twopronged policy aimed at zero energy muda (waste) and zerocarbon emissions by fiscal 2031. As an interim target, TMHE
has worked to increase the ratio of electricity from renewable

Summary

As highlighted in this section, Toyota Industries isaggressively working to reduce CO2 emissions both interms of products and production toward theestablishment of a carbon neutral society. As a result ofsuch efforts, we were selected for the A List, the highest
rating, for three consecutive years in a survey conducted
on climate change by CDP*3, a U.K.-based international
environmental NGO.
As for products, we expect that more stringent
environmental regulations in various countries and growing
energy-saving consciousness among customers willfurther accelerate the electrification of cars and materials
handling equipment in the future. Amid this environment,
we will holistically leverage our broad range of technologies
accumulated in the automobile-related businesses andMaterials Handling Equipment Business to further reinforce
our development efforts geared toward electrification.
In terms of production, we have announced our target
to reduce CO2 emissions by 25% in fiscal 2026 from thefiscal 2014 level in becoming carbon neutral (zero CO2emissions) in 2050. Actually, however, we are aiming for aneven more ambitious target of achieving a 50% reduction
by fiscal 2031 from the fiscal 2014 level. We recognize thatenergy sources to 100% at
Achieved 100% use of
all of its bases by fiscal
electricity from renewableenergy sources
2021.
AprilAt
materials
handling equipment
To achieve this target,
production bases in Europe2018TMHE has selected the one
At all materials handlingAprilequipment bases in Europethat best matches each2021(production + sales)base from among three
options: power contracts
for renewable energy power
Targetgeneration, renewable
FY
Achieve zero CO emissions totally2031
energy certificates andby replacing LPG andother gases with biogas
in-house power generation.
As a result, all of its fiveproduction bases and all 28 non-production companies
achieved the interim target in fiscal 2019 and in April 2021,respectively. TMHE became the first company in the materialshandling equipment industry to achieve 100% use ofelectricity from renewable energy sources at all bases inEurope.
In 2019, Toyota Material Handling Manufacturing Sweden
AB (TMHMS), a TMHE Group company, went a step beyond
using electricity from renewable energy and introduced
biogas in place of liquefied petroleum gas (LPG),
thereby becoming the first zero CO2 emissions
plant in the Toyota Industries Group.
TMHE is undertaking activities to switch allenergy sources used at business sites torenewable energy by 2030.
2thorough improvement of our energy
use efficiency and effective
introduction of renewable energy willbe crucial in achieving this target.
Specifically, we will need to minimize
and utilize exhaust heat from foundry
and other processes, which form a
distinctive part of our business. In promoting the utilizationof renewable energy, we will extend the regionally uniqueeffort first undertaken by our bases in Europe to the entire
Group while defining new targets. Simultaneously, we willtake up a challenge of spurring innovation in
manufacturing to achieve carbon neutrality. The challenge
will include introducing production engineeringtechnologies that have undergone repeated discussions
on CO2 reduction from the product design stage. Furtherendeavors will also entail proactively carrying out
demonstration and introduction of new carbon neutral
technologies, such as the use of hydrogen and capturingof CO2 at plants, for establishing a CO2 circulation system
at a model plant.
We will continue to make proactive efforts to reduce
CO2 emissions both in terms of products and production
and contribute to the creation of a carbon neutral society.

*3: An international NGO running a project in which institutional investors work together and request companies around the world to disclose their strategies against climate change andgreenhouse gas emissions data24

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