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

Environmental Initiatives

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

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

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

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

Environmental
risk reduction
Society inharmony withnatureCarbon neutral
society

Recyclingbasedsociety

Environmental Management

Notional Diagram of Global Environmental Commitment

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

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

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

60

Toyota Industries Report 2021

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

Corporate Information

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

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

Committees
President

Environmental Committee

Internal audit

Specialized committees

Responsible
internal auditor

Product Environment
Subcommittee•Team leader•Supervisingauditors

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

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

Formulation of the Seventh Environmental Action
Plan

Promotion of ESG Initiatives
Environmental Initiatives

Head Office

Divisions

Corporate Planning

Materials Handling
Equipment

R&D
Purchasing

Environmental Vision 2050 and Environmental
Action Plans

Strategies and Businesses

Division-Based
Promotion Committees

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

VehicleEngineAcquisition of ISO Certification

Quality Assurance
Human Resources
General Administration

Compressor
Electronics
Textile Machinery

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

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

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

n Product Related

Summary of the Sixth Environmental Action Plan

Sixth Environmental Action Plan Targets

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

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

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

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

FY2021 Achievements

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

Subject

CO2
emissions

ScopeControl Items

Base Year(FY)

Nonconsolidated

Total
emissions2006

Emissionvolume perunit of
Non1
consolidated production*

2006

Emissionvolume perunit ofproduction

2007

GlobalCO2
Nonemissions
from logistics consolidated

FY2021 Targets
Achievements

Targets

–16%

–10%

–29%

–26%

–32%

–30%

–33%

–28%

Action Policies

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

FY2021 Achievements
Subject

Scope

Japan
consolidated
Waste
volumeNonconsolidated

Control Items

Base Year(FY)

Reduce CO2 emissions throughproduct and technology
development

Establishinga Recycling-BasedSociety

Implement initiatives to promote
3R (reduce, reuse and recycle)
design for effective resource
utilization•Reduce use of resources through longer product life
•Reduce use of resources through standardization, modularization
and reduction of components•Reduce use of resources through development of technologies toenable weight reduction and downsizing•Promote reuse of components and resources•Developed new DC-DC converter•Developed new engine•Developed new AC inverter•Promoted use of recycled materials

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

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

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

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

–45%
Waste
volume perunit ofproduction

–27%

2006

–45%

–29%

Action Policies/Specific Actions

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

FY2021 Achievements
Subject

Scope

Control Items

VOC*2

Nonconsolidated(automobile
body)

Emissionvolume perunit ofproduction

emissions62

Toyota Industries Report 2021

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

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

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

Improve eco-conscious brand
image

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

Base Year(FY)

Achievements

Targets

2006–36%(24g/m2)–36%(24g/m2)

FY2021 Achievements

Augment activities related toprotection of biodiversity

Targets

Promoting
Environmental
Management

Specific Actions•Share the biodiversity guidelines across all Toyota Group
companies and contribute to the expansion of a habitat forliving organisms•Formulate and promote plans to link activities and connect
green zones by undertaking activities for conservation of
biodiversity throughout the Toyota Industries Group, including
at consolidated subsidiaries in and outside Japan

FY2021 Targets
Achievements

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

Establishing a
Carbon Neutral
Society

Establishing a Recycling-Based Society
Action Policies/Specific Actions

Specific Actions•Develop technologies that contribute to an even greater levelof energy efficiency•Develop products and technologies that respond to electrification•Develop technologies to enable weight reduction•Reduce energy loss
•Develop technologies for the realization of a hydrogen-based society•Participated in All Toyota Green Wave Project•Conducted biodiversity conservation activities
within Toyota Industries premises*1: We manage emissions in each business by using either unit of production or unit of sales as a basic unit of emissions. The weighted average ofreduction rates of all businesses is used as our management index.
*2: Volatile Organic Compounds*3: Substances of Very High Concern

Link to theaction plan

63

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

n Product Related

Seventh Environmental Action Plan

Seventh Environmental Action Plan Targets

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

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

Action Policies

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

Establishing a Carbon Neutral Society

Scope

Control Items

Base Year (FY)

Reduce CO2 emissions through product andtechnology development

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

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

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

Seventh Environmental Action Plan
Subject

Establishinga Recycling-BasedSociety

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

Action Policies/Specific Actions

Establishing a
Carbon Neutral
Society

Seventh Environmental Action Plan Targets

Targets

Action Policies

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

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

CO2
emissionsGlobalTotal emissions

2014–25%*1

RenewableenergyGlobalIntroduction rate

—

15%

CO2
emissionsfrom logistics

Non-consolidated

Emission volume
per unit ofproduction*2

2014

–11%

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

Establishing a Recycling-Based Society
Action Policies/Specific Actions

Seventh Environmental Action Plan
Subject

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

Waste
volumeScope

Non-consolidated

Control Items

Waste volume
per unit ofproduction

Base Year (FY)2014

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

Targets

Further reduce emissions of substances ofconcern from production activities

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

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

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

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

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

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

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

64

Toyota Industries Report 2021

Link to theaction plan

65

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

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

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

Progress in Efforts to Establish a Carbon Neutral
Society

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

16
29% reduction (vs FY06 level)

FY21 target:

10% reduction(vs FY06 level)

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

FY21 target:

26% reduction(vs FY06 level)

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

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

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

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

CSR Material Issue

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

Progress in Efforts to Establish a RecyclingBased Society

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

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

Consolidating

Toyota Industries Report 2021

Establishing a Recycling-Based Society

45

Beforeimprovement

66

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

FY21 target:

29% reduction(vs FY06 level)

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

Local
heating

Before improvement(Adding a fixed amount)

FY21 target:

27% reduction(vs FY06 level)

Initiative to Reduce Sludge Volume

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

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

Heating processes

After improvement

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

After improvement

Turbidity

Case
ExampleCSR Material Issue

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

Amount of agent added

Establishing a Carbon Neutral Society

Time

67

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

Case
ExampleEfforts for Reducing the Use of Plastics

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

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

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

CSR Material Issue

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

68

Toyota Industries Report 2021

Initiative for Raising Awareness of Water
Resources

Initiative for Reducing Wastewater
Discharge through Water Recycling

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

Ultraviolet treatment
equipment

Purified water back to
the painting process

Wastewatertank

FilterDistillationequipment

Carbon filter

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

CSR Material Issue

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

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

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

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

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

Cleanup Day (TACK)CSR Material Issue

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

Fox pups using the animal path69

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

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

FY21 target:

36% reduction(vs FY06 level)

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

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

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

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

Toyota Industries Report 2021

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

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

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

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

External Environmental Awards

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

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

Control Department

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

Environmental Impact Flow

at a base in Chinan Energy [consolidated]

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

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

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

Energy consumption

15,938 TJ*2

Electricity

1,355,962 MWh

City gas

83,037 km3N

LPG

3,882 tPetroleum products

3,141 kl

Coal products

5,968 t

LNG

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

730,270 t

n Water [consolidated]
Water withdrawal

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

PRTR law*3 designated substances

4,548 km3

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

R&D/Design

Production
Transportation/
Sales
Usage
Recovery/
Recycling

824,841 t-CO2

Greenhouse gases other than CO22,400 t-CO2

CO2 emissions from logistics

14,904 t-CO2

SOx (Sulfur oxides)
NOx (Nitrogen oxides)

Procurement

OUTPUT

Summary VOC Emissions (Production Activities)

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

INPUT

Progress in Efforts (Substances of Concern)

VOC (Volatile organic compounds)

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

355 t

108,670 t

n Into Waterways (consolidated)
Water pollutants

27 t

Discharge of treated wastewater

2,252 km3

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

71