Toyota Industries Report 2014

Environmental Initiatives

Vision for Environmental Activities

P

60

Structure to Implement Environmental Management

P

61

Fifth Environmental Action PlanP

6 2 −6 3

Establishing a Low-Carbon Emission SocietyP

6 4 −6 5

Establishing a Recycling-Based Society
Reducing Environmental Risk andEstablishing a Society in Harmony with Nature

P

P

66

6 7 −6 8

Environmental Management

P

69

Environmental Impact Flow and Environmental Accounting

P

70

59

Corporate Social
Responsibility

Business Activities

Financial Section /Corporate Information

Environmental Initiatives

Vision for Environmental Activities/
Structure to Implement Environmental Management

Vision for Environmental Activities

Structure to Implement Environmental Management

Toyota Industries works with consolidated subsidiaries in and outside Japan to promote environmental
activities on a global scale. With regard to our “CO2 Cancel” initiative, we aim to accomplish its targets
in ﬁscal 2016.

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.

Global Environmental Commitment
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 comprising 154
companies in and outside Japan will dedicate concerted
efforts to realizing a prosperous life in harmony with thenatural environment by carrying out activities aimed at“establishing a low-carbon emission society,” “establishing a
recycling-based society” and “reducing environmental risk
and establishing a society in harmony with nature” as ourway of “promoting environmental management.”

product efﬁciency and other means. We have adopted thisapproach as a new environmental target under the Fifth
Environmental Action Plan.

Activities for Accomplishing “CO2 Cancel”
Aiming to accomplish “CO2 Cancel” in fiscal 2016, we havebeen undertaking activities accordingly.
In fiscal 2014, our efforts to develop products withimproved efficiency led to the successful development andrelease of engines with considerably less CO2 emissions andan air-jet loom with lower energy consumption. As a result ofconcerted efforts to reduce CO2 emissions from production
activities, we made steady progress toward the goal of
attaining “CO2 Cancel” in fiscal 2016.
We will continue to promote our CO2 reduction activities
both in terms of product development and production
activities.

Aiming at realizing a prosperous life in harmony
with the natural environment

Steps to Accomplishing “CO2 Cancel”• Change to more environmentally friendly chemicals• Minimize environmental risks

Environmental risk
reduction
Society in harmony
with nature• Effective use of resources at thedeveloping stage of products• Improvement of productivity interms of resources usage

Recycling-basedsocietyLow-carbon
emission society

Environmental
Management

Toyota Industries implements annual internal environmental
audits as well as external audits carried out by anindependent third-party institute.
The external audit conducted in ﬁscal 2014 revealed one
non-conformance. We have already completed measures tocorrect it and passed on the relevant information to otherplants to prevent recurrence.
As for internal audits, we introduced a system ofconducting mutual audits among business divisions in fiscal
2013. Under the system, the Environment Department of
one business division plays a central role in an internal auditof another business division. By adopting this method, we
aim to upgrade the overall capabilities of the Environment
Department of each business division. At the same time, inorder to improve the capabilities of auditors, they work in pairs
when conducting an audit, with one auditor having a high levelof expertise teaming up with a less experienced auditor.

n Environmental Management Structuren System of Mutual Audits•Team leader•Supervising auditors•Auditors

Specify targets (including when to accomplish“CO2 Cancel”)

6 Define higher targets (e.g., “CO2 Double Cancel”)

Production Environment Subcommittee
Company-Wide CO2Emission Reduction Conference

Divisions
Materials Handling Equipment
VehicleEngineCompressor
Electronics
Textile Machinery

Division-Based
Promotion Committees

Business division B
Environment Department

Audit

Product Environment Subcommittee

Admin office

Audit

Environment Department

Specialized committees

Chief environmental administrator

Head Office
Corporate Planning
R&D
Purchasing
Quality Assurance
Human Resources
General Administration

Business division A

Environmental Committee

President

2 Simulate a timeline to accomplish “CO2 Cancel”

5 Accomplish “CO2 Cancel”

Notional Diagram of Global Environmental Commitment

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.
Since fiscal 2011, we have been consolidating
environment-related regulations that had been establishedseparately by each business division with the aim of
improving the efficiency of our EMS. In fiscal 2014, we
formulated Company-wide standards to identify facilities thatmust be included in our evaluation of the environmental
impact of production activities (evaluation of environmental
aspects). These standards helped us to evaluate all facilities
that could potentially affect the environment and reduce
associated environmental risks. We have also simplified theevaluation process.

Internal audit
Responsible internal auditor

3• Approach towards biodiversity• Human resources,
environmental awareness• Cooperation with global
society and local communities

Environmental Audits

Establish parameters to calculate CO2 reduction
1
volume for each product4 Promote activities to achieve these targets• Development of products andtechnologies in pursuit of superiorenergy efficiency• Achievement of minimum energy
consumption through the innovationsin production engineering

Improving Environmental Management
System Efﬁciency

Business planning

Business planning

Production engineering

Production engineering

Manufacturing

Manufacturing

Environmental Conservation Organization by manufacturing plants (environmental risk management overseen by plant managers)n Scope of Group-Wide Environmental Management (As of March 31, 2014)

Working toward “CO2 Cancel”
What Is “CO2 Cancel”?
CO2 emissions fromWe have been promoting production activities
initiatives under our original
concept called “CO2
Cancel.” This refers to ouraim to offset CO2
emissions from production
activities by reducing CO2
emissions via improved

CO2 Cancel

North America■ Production companies: 10

CO2 emissions from production activities= Total CO2 emissions from Toyota Industries’ plants
Reduction of CO2 emissions via improved
product efficiency
Notional Diagram of “CO2 Cancel”

60

Toyota Industries Report 2014

Non-production companies
Japan: 24
Outside Japan: 93

Reduction of CO2 emissions via improved product efficiency= Total reduction in CO2 emissions attained by major products
which are manufactured at Toyota Industries’ plants

Toyota Industrial Equipment Mfg., Inc. (U.S.A.)The Raymond Corporation (U.S.A.)
Raymond-Muscatine Inc. (U.S.A.)
North Vernon Industry Corp. (U.S.A.)
Indiana Hydraulic Equipment, Corp. (U.S.A.)
Michigan Automotive Compressor, Inc. (U.S.A.)TD Automotive Compressor Georgia, LLC (U.S.A.)
Cullman Casting Corporation (U.S.A.)
Cascade Corporation (U.S.A.)
Toyota Industries Compressor Parts America, Co. (U.S.A.)

EuropeJapan■ Production companies: 6■ Non-consolidated: 10 plants■ Production companies: 13

BT Products AB (Sweden)
Toyota Industrial Equipment, S.A. (France)
CESAB Carrelli Elevatori S.p.A. (Italy)
L.T.E. Lift Truck Equipment S.p.A. (Italy)
TD Deutsche Klimakompressor GmbH (Germany)
Uster Technologies AG (Switzerland)

Asia■ Production companies: 7

TD Automotive Compressor Kunshan Co., Ltd. (China)
Toyota Industry (Kunshan) Co., Ltd. (China)
Zhejiang Aichi Industrial Machinery Co., Ltd. (China)
Kirloskar Toyota Textile Machinery Pvt. Ltd. (India)
Toyota Industrial Equipment Vietnam Co., Ltd. (Vietnam)
Nishina Industries Vietnam Co., Ltd. (Vietnam)
P.T. TD Automotive Compressor Indonesia (Indonesia)

Aichi Corporation (Saitama)
Nishina Industrial Co., Ltd. (Nagano)
Tokaiseiki Co., Ltd. (Shizuoka)
Altex Co., Ltd. (Shizuoka)
Hara Corporation (Gifu)
Mino Tokyu Co., Ltd. (Gifu)
HANDA Casting Company (Aichi)
Unica Co., Ltd. (Aichi)
IZUMI MACHINE MFG. CO., LTD. (Aichi)
Nagao Kogyo Co., Ltd. (Aichi)
Miduho Industry Co., Ltd. (Aichi)
Iwama Loom Works, Ltd. (Aichi)
Tokyu Co., Ltd. (Aichi)

61

Business Activities

Corporate Social
Responsibility

Financial Section /Corporate Information

Environmental Initiatives

Fifth Environmental Action Plan

Fifth Environmental Action Plan
The results of our activities in fiscal 2014 showed steady progress across the board toward achieving
respective targets for fiscal 2016.

n Production Related
Fifth Environmental Action Plan Targets
Segments

Progress in the Fifth Environmental
Action Plan
With an eye to realizing a prosperous life in harmony with
the natural environment through the establishment of asustainable society, we have formulated the Fifth
Environmental Action Plan for the period from ﬁscal 2012 toﬁscal 2016, promoting activities according to the plan.
Through activities undertaken during fiscal 2014, we
made steady progress toward achieving respective targets
for fiscal 2016.

n Product Related
Fifth Environmental Action Plan Targets
Segments

Action Policies

FY2014 Achievements

Specific Actions

Reduce CO2 emissions by 10%*1 from major products to be developed during the period covered by
the Fifth Plan

In the Automobile-Related Business, promoteelectrification and develop technologies andproducts that will contribute to reduction of CO2
emissions

Establishing a
Low-Carbon
In the Materials Handling Equipment Business,
Emission Society develop technologies and products that willcontribute to reduction of CO2 emissions• Improve fuel efﬁciency of internal-combustion lift
trucks• Reduce energy loss in electric-powered lift
trucks and improve energy efficiency offunctional units

In the Textile Machinery Business, develop
technologies and products that will contribute to
reduction of CO2 emissions• Reduce energy use through lower air
consumption• Reduce power use through lower load fromwindage loss
• Reduce energy loss

In the R&D field, develop technologies for energy
efficiency• Develop new technologies that contribute toimproved energy efficiency in automobiles

Establishing a
Implement initiatives to promote 3R (reduce,
Recycling-Based reuse and recycle) design for effective resource
utilization
Society

Reducing
Environmental
Risk and
Establishing aSociety inHarmony with
Nature• Improve energy efficiency of car air conditioners• Develop technologies to respond toelectrification of vehicles• Develop technologies to enable weight reduction• Reduce energy loss
• Develop new engines<Automobile-Related Business>• Developed highly efficient electric compressor<Materials Handling Equipment Business>• Improved energy efficiency of diesel/gasolinepowered internal-combustion lift trucks<Textile Machinery Business>• Developed the new JAT810 air-jet loom withlower air consumption• Reduce use of resources through longer productlife• Reduce use of resources throughstandardization, modularization and reduction of• Developed plastic glazing back window
components• Reduce use of resources through weight andsize reductions• Promote reuse of components and resources

Reduce emissions to improve air quality in urban
areas in all countries and regions• Develop engines that meet future regulations• Developed lift truck engines compliant withemissions regulations ahead of schedule

Manage chemical substances contained in
products• Investigate chemical substances contained in
products and manage switching over of SVHC*2
and other substances of concern to othersubstances• Expanded the scope of substances of concern(investigated substances of concern containedin supplies)

Toyota Industries Report 2014

Promote energy reduction and energy conservation
through innovative production technologies
Reduce greenhouse gas emissions during production
processes through energy JIT*3
Promote measures to curb global warming

Reduce CO2 emissions through green logistics

Establishing a
Recycling-BasedSocietyEnhance resource productivity• Reduce use of timber-derived packaging materials• Reduce the volume of discarded materials by taking
action at the source, such as improving yields andother measures• Promote internal reuse

Further reduce emissions of substances of concern
Minimize environmental risks
Reducing
Environmental Risk • Continuously use a preliminary review system• Reduce risks related to wastewaterand Establishing a• Appropriately manage chemical substances based onSociety in Harmony social conditions
with Nature• Enhance risk communication with relevantorganizations and local residents

Subject

Scope

NonCO2 emissions
consolidated• Energyderived CO2
Global• 5 gases*4• CO2 from
Nonlogistics
consolidated

FY2016 Targets

Control Items Base Year (FY) Achievements

Targets

Total
emissions

2006

-13%

-18%

Eco
efficiency*5

1.25

1.27

2006
1.43

1.47

Total
emissions

1991

-30%

-20%

CO2 from
logistics

Nonconsolidated

Eco efficiency

2007

1.41

1.09

Packagingmaterial
volumeNonEco efficiency
consolidated

2007

4.86

1.09

1.02

1.01

1.02

1.01

24 (g/m2)

24 (g/m2)

Waste
generation
volumeVOC*6emissions

In Japan
Nonconsolidated

Nonconsolidated(automobile
body)

Eco efficiency

Emissionvolume perunit ofproduction

2013

—

n Promoting Environmental Management
Fifth Environmental Action Plan Targets
Action Policies

Specific Actions

Reinforce CO2 reduction • Further reduce CO2 emitted from production activities in plants
activities for “CO2
• Aim to cancel out CO2 emissions of Toyota Industries by reducing CO2
Cancel”
emissions through improved efﬁciency in newly developed products

Augment and promoteconsolidated
environmental
management

FY2014 Achievements• Conducted activities for achievement of “CO2 Cancel”(Target: FY2016)• Build a global environmental management system and promote related
activities to:• Conducted on-site inspections of environmental risks and1) Comply with environment-related laws and reduce environmental risks in
confirmed compliance at consolidated subsidiaries in Japan, andeach country
conducted interview survey of environmental risks at consolidated
2) Achieve the highest-level performance in each country
subsidiaries outside Japan• Aim for efﬁcient and systematic corporate management by integrating and• Checked the precision of environmental data at consolidated
operating environmental management system and quality/safety management
subsidiaries in Japan and provided support for improvement
systems• Develop environmental specialists to lead internal environment-related
Enhance and promote
activities
environmental education• Strengthen internal environment-related activities and broaden family-friendly
and enlightenment
initiatives by planning and promoting enlightenment activities that can be
activities
carried out at home

• Conducted environmental awareness survey among employees,
which scored 3.8 out of 5 points

Improve eco-conscious
brand image• Reinforce environmental activities according to the contents and results ofSurvey of Environmental Oriented Management Index to pursue higher brand
image

Augment activities
related to protection of
biodiversity• Identify the impact of business activities on biodiversity and reinforce initiatives• Conducted maintenance and management activities at Biotope ofby deﬁning speciﬁc goals
the East of Obu Station, which were jointly carried out with the• Contribute to biodiversity through conservation of forests and protection of
local community
rare species

Promote sustainable
plant activities• Build a plant environment in harmony with nature by promoting energy
reduction and energy conservation through innovative production engineering, • Continually reviewed energy strategy for the medium to long termby reducing energy loss and by using renewable energy and other means• Won Biotope Award in the 5th Biotope Commendation† Targets for FY2016 undisclosed due to confidential information† Targets for FY2016 undisclosed due to confidential information

62

Establishing a
Low-Carbon
Emission Society

Action Policies/Specific Actions

FY2014 Achievements*1: Target products Toyota Industries develops and produces. The CO2 reduction volume is calculated based on the method Toyota Industries determined using FY2011 levels as the baseline.
*2: Substances of Very High Concern*3: Just In Time
*4: Greenhouse gases other than CO2, including methane (CH4), dinitrogen monoxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6)*5: Eco-efficiency = Production efficiency in subject year / Production efficiency in base year
Production efficiency = Production indicator (Net sales or production volume, etc.) / Environmental impact of production activities*6: Volatile Organic Compounds

63Business Activities

Corporate Social
Responsibility

Environmental Initiatives

Financial Section /Corporate Information

Establishing a Low-Carbon Emission Society

Establishing a Low-Carbon Emission Society
We position the establishment of a low-carbon emission society as one of our most crucial
environmental tasks. We are working to reduce CO2 emissions in our global business activities and at
the same time accelerate our efforts to develop more environment-friendly products.

Reinforcing Activities to Reduce PeakPower Consumption by Visualizing Use of
Electricity

Summary
CO2 Emissions (Production Activities)
FY2014 Results
Total emissions(non-consolidated)

13%

FY16 target:

18% reduction

reduction(vs FY06 level)(vs FY06 level)

Eco-efficiency (global)

1.25

FY16 target:

1.27 (FY06 = 1.00)(FY06 = 1.00)

Under the Fifth Plan, we set out to achieve a target of
reducing total non-consolidated CO2 emissions fromproduction activities by 18% in fiscal 2016 comparedwith the fiscal 2006 level. We successfully achieved a
13% reduction in CO2 emissions in fiscal 2014 as aresult of our ongoing efforts to save power and reduce
peak power load as well as joint activities among the
manufacturing, production engineering and environment
departments to reduce the amount of air used in
production activities.
Our product development activities are based on the
keywords of 3Es (Energy, Environmental protection and
Ecological thinking), and we focus on developing
products that meet the need for increased energy
savings, electriﬁcation and weight reduction. In this area,
we are currently working toward a target of attaining a
10% reduction in CO2 emissions from primary products
by ﬁscal 2016 compared with the ﬁscal 2011 level.

To help promote activities to lower the upper limit of power
consumption during summer and at other occasions, we
introduced a new, Company-wide power management
system capable of monitoring the usage and demand
estimates of electricity in real time. By visualizing data on theusage status of electricity, which had been managed solely
by the department responsible for supplying energy, andmaking the data available to all employees, we worked toraise their awareness for conserving electricity further andreduce our peak power consumption.
This management system enables us to adjust our useof electricity according to power demand estimates. If weare reaching the internal target (upper limit) of power usage,
the system notifies supervisors by displaying a message on
the screen, sending email alerts and lighting indicator lamps,
all of which serve to accelerate the process of reducing
peak power load. The result was a 12% reduction in peak
power consumption of the entire Company (compared withthe assumed power consumption in fiscal 2014 if thesystem was not introduced).
We will continue to undertake proactive efforts topromote the management of electricity and other forms ofenergy at plants and contribute to the conservation of the
global environment through power- and energy-saving
activities.
n Company-Wide Energy Management System
Automatic datacollection

Initiatives for Establishment of a Low-Carbon
Emission Societyn CO2 Emissions (Non-consolidated/Consolidated
subsidiaries in and outside Japan)

Automatic datacollection

Past power demand data

Weather information

Automatictransmission

Consolidated subsidiaries outside Japan
Non-consolidated
Consolidated subsidiaries in Japan
Eco-efficiency
Eco-efficiency (non-consolidated)
Eco-efficiency (consolidated)

1.23

1.31

1.36

1.14
Total
emissions
(kt)

800

1.00
1.09

1.13

1.21

1.00
667

600

600

678

756

1.23

796

1.43

1.6

Good

1.4
1.25
858

1.2
1.0

Web browser screen

Data available in real time

Indicator lamp

Email alert

Sending alert

400
200
Good

64

0

(FY) 06

Toyota Industries Report 2014

10

11

12

13

14

All employees

Supervisors

Kazunori
Mizogami (left)

CO2 Reduction Group,
Plant Engineering Office,Plant Engineering &Environment Dept.

Takahiro
Omura (right)

Working Group Leader,
CO2 Reduction Group,
Plant Engineering Office,Plant Engineering &Environment Dept.
Position anddepartments are as ofMarch 31, 2014.

In introducing a Company-wide power management
system, we needed to consolidate in our servers data onelectricity that we receive from a power company, so ourfirst task was to develop a system that can do this easily.
Because we had not accumulated power usage data inthe past, we had difficulty analyzing peak power consumption.
By saving relevant data in servers at one-minute intervals,
the analysis of peak power consumption became possible.
In the future, we will incorporate information on the
production status and operational plans of each plant into
the system to improve the accuracy of power demand
estimates. We will also increase email alerts and install moreindicator lamps in a wider area as a means of raising thesystem’s effectiveness in reducing power consumption.

Rearranging Boiler Placement to Reduce
Steam Transmission Loss
As part of efforts to reduce CO2 emissions, the Takahama
Plant in Aichi Prefecture, which engages in development andproduction of materials handling equipment, has beenworking to improve the efficiency of its production facilities
since fiscal 2009 with the aim of reducing steam
transmission loss in production processes.
Previously, steam was generated in one boiler room
within the plant and distributed to each production process.
This necessitated steam to be carried over a long distanceand thus a considerable amount of heat was lost frompiping. In order to shorten the distance of distributing steam,additional boiler rooms were installed close to the steamconsuming production processes located far from thecentral boiler room. The steam piping system was also
modified to enable control of the steam transmission volume
according to the seasons or the time of day. As a result,annual CO2 emissions of the Takahama Plant were reducedby roughly 600 tons.
We will continue to undertake similar improvement
activities to further reduce steam transmission loss.

Certiﬁcation of Environmentally Friendly
Products
Toyota Industries has been proactively promoting
development and design of eco-conscious products.
To certify products that possess exceptionally outstanding
environmental performance and meet internal environmental
standards, we launched the Environmentally Friendly
Product Certiﬁcation System in ﬁscal 2007. Up to ﬁscal
2013, 12 products have obtained certiﬁcation under thissystem. In ﬁscal 2014, we certiﬁed another three types ofindustrial engines as environmentally friendly products.
(Survey by Toyota Industries Corporation)

Toyota 1KD diesel engine (industrial engine)
Eco-conscious features:•Fitted with a turbocharger developed in-house fordownsized displacement, offers greater fuel efficiency
and weight reduction•Capable of greatly reducing emissions of particulatematter (PM) compared with the previous model without
using a diesel particulate filter (DPF) and has cleared
emission standards*1 of various countries and regions
Fuel consumption: 23% lower(versus previous model)

Displacement: 43% smaller(versus previous model)*1: This engine has cleared the following emission regulations:(1) U.S. Environmental Protection Agency (EPA) Tier 4 emission standards(2) EU Stage IIIB standards for non-road engines(3) Japan's 2013 Non-road Special Motor Vehicle emission regulation

Toyota 1ZS diesel engine (industrial engine)
Eco-conscious features:•Optimized the turbocharger mounted on the Toyota
1KD for use in the Toyota 1ZS. Shifted from theprevious 4-cylinder engine to 3-cylinder diesel engine,which marks as a first for Toyota Industries, realizing
downsized displacement while maintaining highoutput power and achieving greater fuel efficiency
and weight reduction.
•Drastically reduces PM emissions compared with theprevious model without using a DPF and passes
emission standards of various countries and regions
Fuel consumption: 20% lower(versus previous model)

Displacement: 48% smaller(versus previous model)

Toyota 1FS gas/gasoline engine (industrial engine)
Eco-conscious features:•Offers greater combustion efficiency resulting from theoptimally shaped combustion chamber and central
placement of the spark plug within the chamber andachieves both improved output and higher fuelefficiency•Downsized displacement for realizing weight reduction
Fuel consumption: 10% lower(versus previous model)

Displacement: 18% smaller(versus previous model)† See page 18 for details.

65Corporate Social
Responsibility

Business Activities

Environmental Initiatives

Financial Section /Corporate Information

Establishing a Recycling-Based Society/
Reducing Environmental Risk and Establishing a Society in Harmony with Nature

Establishing a Recycling-Based Society

Reducing Environmental Risk andEstablishing a Society in Harmony with NatureWith a view to establishing a recycling-based society, we have been dedicating considerable efforts tomaking effective use of resources throughout our entire supply chain.

All employees of the Toyota Industries Group are honing their ability to identify environmental risk andpromote prevention activities on a global scale.

Summary
Waste Generation Volume (Production Activities)
FY2014 Results
Eco-efficiency(non-consolidated)

1.02

FY16 target:(FY13 = 1.00)

Eco-efficiency (non-consolidated/consolidated subsidiaries in Japan)

1.02(FY13 = 1.00)

1.01 (FY13 = 1.00)
FY16 target:

1.01 (FY13 = 1.00)

Our fiscal 2016 eco-efficiency targets in the area ofwaste generation volume under the Fifth Plan are set at
1.01 both on a non-consolidated basis and for Toyota
Industries and its consolidated subsidiaries in Japan(fiscal 2013 as the base year). During fiscal 2014, toreduce materials losses we launched activities to makeeffective use of resources throughout the entire supply
chain, extending the scope of our activities to ourbusiness partners.

mechanical systems).
Previously, cleaning fluid that accumulated in a recovery
box outside the facility due to dew condensation wascollected and disposed of by operators. To eliminate thisloss, the plant installed a mechanical pump to recover the
fluid and send it back to the cleaning fluid tank for reuse.
This process involves an operator stepping on a floor panel,
which is positioned several millimeters higher than the floor,
to pump up cleaning fluid in the recovery box. When theoperator steps off the panel, the fluid is sent back to thetank. This floor panel is located in an area where operators
normally work, thus they operate the pump unconsciously.
This mechanism has been successfully adopted in otherproduction processes throughout the Company.
n Mechanism of Mechanical Pump
Pump upcleaning fluid
Air
Cleaning
fluid

Step on floor panel
Send cleaning
fluid back to tank

Initiatives for Establishing a Recycling-Based Societyn Waste Generation Volume (Non-consolidated/
Consolidated subsidiaries in Japan)
Non-consolidated

Air

Consolidated subsidiaries in Japan

Eco-efficiency (non-consolidated)

Cleaning
fluid

Eco-efficiency (Japan consolidated)

Good

1.00

1.02

1.01

1.00

1.02

1.01

131

125

1.0

Step off floor panel

200

100

0
(FY)

13

14

Cleaning fluid
recovery box

Eco-efficiency

Waste generation volume (kt)

1.2 Good

16 (Target)

Members of the Facilities
Section, Preventive
Maintenance Office,
Manufacturing Dept. No. 1,
Hekinan Plant

Recovering Cleaning Fluid by a MechanicalPump
The Hekinan Plant in Aichi Prefecture, which produces diesel
and gasoline engines, created a pump for collecting andrecycling cleaning fluid.
This pump operates mechanically without using power
generated by motors. It is one example of kaizen(improvement) utilizing Japan’s traditional karakuri (simple

66

Toyota Industries Report 2014

The Facilities Section has been proactively undertaking“kaizen by karakuri” initiatives, and our efforts have led to aconsiderable improvement not only for environmental areas
but also safety and productivity. “Kaizen by karakuri” also
has served to raise kaizen awareness within the workplace
and promote the development of capable human resources.
Our abilities are improving on a daily basis.

n Trichloroethylene Readings

Summary
VOC Emissions (Production Activities)
FY2014 Results
Emissions per unit of production(non-consolidated/automobile body)

24 g/m2

Plant

FY2010FY2011FY2012FY2013

FY2014

Kariya Plant

0.67

0.41

0.38

0.26

0.27

Kyowa Plant

0.34

0.41

0.48

0.33

0.31

Weighted average concentration in groundwater (mg/l)

FY16 target:

24 g/m2

Under the Fifth Plan, we set a fiscal 2016 target of
attaining emission volume per unit of production below
24 g/m2 for volatile organic compounds (VOCs) from theautomobile body painting process and undertook
activities accordingly. In fiscal 2014, we focused onincreasing the recovery rate and enhancing maintenanceand management of thinner, a solvent used for cleaning.
Consequently, emission volume per unit of production in
fiscal 2014 was 24 g/m2.

Status of Compliance withEnvironmental Laws
In fiscal 2014, there were two incidents in which plant
effluents exceeded standard values at consolidated
subsidiaries within the Toyota Industries Group. These
incidents have been reported to the relevant authorities, andcorrective measures have already been completed by thesubsidiaries concerned. Subsequent confirmations havealso been made to ensure that there are no recurrences.

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

Initiatives to Minimize Environmental Risk
We regard the prevention of environmental irregularities as
one of our most important themes and have been promoting
activities under the Fifth Plan.
We are identifying facilities and work processes with therisk of leakage of chemical fluid or oils and implementing
preventive measures, both mechanical and procedural,following a prioritized list. We seek to minimize
environmental risk throughout the Toyota Industries Groupby conducting genchi genbutsu (go and see for yourself)
inspections at consolidated subsidiaries and promoting
activities to raise awareness among employees as well as
business partners.

Enlightenment Activities Utilizing
Environmental AP Cards
To communicate to employees the details of environmental
irregularities and potentially serious near-accidents that haveoccurred in the past and to prevent similar incidents fromoccurring, we created Environmental AP (Accidental Pattern)
Cards, which we use to promote enlightenment activities.
Environmental AP Cards provide an outline of andresponsive action and procedures required for each incident
along with points to keep
in mind during the worst
case scenario in which asimilar incident occurs. We
categorize incidents bytype, source, cause andapplicable work process
and create a list to manage
these incidents. Upon theoccurrence of a newincident that is not similar
to any on the list, wecreate a new card anddistribute it internally.
Environmental AP Cards

67

Business Activities

Corporate Social
Responsibility

Environmental Initiatives

Financial Section /Corporate Information

Reducing Environmental Risk and Establishing a Society in Harmony with Nature/
Environmental Management

Environmental Management
During fiscal 2014, we conducted enlightenment
activities simultaneously at production sites using theEnvironmental AP Cards to raise employee awareness. The
head of each department explained the contents of thecards as well as how to prevent similar incidents and how to
respond to an incident if it occurs within their department. In
addition, we created a collection of written declarations tobe observed by employees to prevent incidents.
Going forward, we will expand the scope of ourenlightenment activities based on the Environmental AP
Cards from production sites to other departments
throughout the Company.

Establishment of Award Program to
Recognize Risk Reduction Efforts
We established the Environmental Award Program torecognize employees, including temporary and term
employees, for early detection of environmental irregularities
or potentially serious near-accidents and their subsequent
contribution to preventing such incidents from spreading.
The program focuses on raising awareness for risk reduction
among employees by “recognizing” their efforts to prevent
damage from spreading, rather than “blaming” shouldincidents occur.
The program provides points according to the level ofseriousness of an incident or difficulty in detection, andbased on the points given, awards prizes such as an award
certificate, various incentives and points under our internal
eco-point system. The program, launched in January
2014, has recognized eight employees as of the endof March 2014.

Genchi Genbutsu Inspections on
Management of Consolidated Subsidiaries’
Drainage Systems
With a view to preventing the occurrence of any
environmental irregularities or potentially serious nearaccidents throughout the Toyota Industries Group, we
periodically monitor risk reduction activities of consolidated
subsidiaries. In fiscal 2014, we performed genchi genbutsu
inspections on drainage systems and their management
status at 11 bases of seven consolidated subsidiaries
in Japan.
Prior to inspection, we created a list primarily of facilities
with high risk of external leakage, such as wastewater
treatment facilities, grease and oil tanks, effluent pits andpiping that connect to the external environment, andinspected how they are managed based on a check sheet.
We make suggestions for kaizen for any problems foundduring the inspection and share good examples of kaizen
throughout the Group.
We also held hearings with consolidated subsidiaries
outside Japan using a similar check sheet. In the future,
we will raise the level of our risk reduction activities on
a global scale by proactively undertaking genchi
genbutsu inspections.

In addition to the conservation of biodiversity, Toyota Industries is also undertaking a range ofenvironmental activities at its consolidated subsidiaries in and outside Japan.

Creation of a Biotope Considering
Ecological Networks
In September 2012, we created a biotope open to the local
community on our idle land in Obu City, Aichi Prefecture. In
cooperation with an Aichi prefectural government initiative topromote development of ecological networks, we createdan environmental setting that serves as a node to connect
isolated areas with green zones and waterways and becomea habitat for various living organisms. During fiscal 2014, we
conducted maintenance and management activities jointlywith local community members. After holding a study
session to which we invited an expert on biotope
maintenance and management, we cut grass andconducted other maintenance activities on the premises.
Participants were impressed that certain ways of cutting
grass can create an environment friendly to various livingorganisms. We will collaborate with local residents indeveloping this biotope to contribute to the conservation of
the region’s ecological networks.

Assistant Team Leader,Power Section No. 4, Power Office,Plant Engineering & Environment Dept.

Toyota Industries Report 2014

Position and department are as ofMarch 31, 2014.

We have been holding the No-Car Commuting Day event as
part of ISO 14001 activities.
The event encouraged employees living in the sameneighborhood to share rides. This not only resulted in lessenvironmental impact but also generated active
communication among employees. We will continue
to hold this event and raise environmental awarenessamong employees.

TMHE to Publish its First Social andEnvironmental Report

Study session on biotope maintenance and management“No-Car Commuting Day” Event Held by
Nagao Kogyo

Position and department are as ofMarch 31, 2014.

68

Deputy General Manager,
Business Administration Department,
Nagao Kogyo Co., Ltd.

In November 2013, Toyota Material Handling Europe(TMHE), the European headquarters for the materials
handling equipment business, published a social andenvironmental report for the first time.
The title of this report, “DUAL IMPACT,” shows TMHE’s
commitment to minimize the environmental impact of its
products and production activities in Europe in support ofEurope’s ambitious environmental regulations. It indicates
how TMHE would focus on both product development andproduction activities to support customers adhering to newlegal requirements.

Takeshi Hongo

I noticed a change in the reading on a meter early andreceived an award for identifying the cause quickly andpreventing damage from becoming serious. I’m glad that myaction was effective in preventing damage, and the award isa strong reminder that reducing risk is very important. I will
make sure to quickly discover, respond to and report any
irregularity, being careful not to miss the smallest change,
and work to prevent environmental irregularities before
they occur.

Nobukazu Taguchi

Genchi genbutsu inspection of a drainage system (consolidated subsidiary in Japan)

Nagao Kogyo Co., Ltd., a consolidated subsidiary in Aichi
Prefecture engaging in the manufacture of parts forcompressors, materials handling equipment and textile
machinery, has been holding an annual “No-Car Commuting
Day” event since fiscal 2009. At the sixth event held in June
2013, about 55% of employees commuting by car came towork on foot or by public transportation, bicycle or ridesharing. This result was equivalent to a 221 kg reduction in
CO2 emissions.

Tom Schalenbourg in charge of report development

69

Environmental Impact Flow andEnvironmental Accounting
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).

Environmental Impact Flow
Environmental
Impact FlowINPUTn Energy [consolidated]
Total consumption ..................................
Electricity ...............................................
City gas ..................................................
LPG .......................................................
Petroleum products ................................
Coal products ........................................
LNG .......................................................

11,006 TJ*1
1,180,108 MWh
69,181 km3N
4,936 t6,156 kl
7,001 t5,581 tR&D/Design
Procurement
Production*1: Terajoule is a unit used to measure heat. 1 TJ = 1012 joulesn Raw Materials [consolidated]
Raw material consumption .....................

Transportation/Sales

662,412 t

n Water [consolidated]
Water consumption ................................

n Into the Air [consolidated]
CO2 .......................................................
Greenhouse gases other than CO2 .........
CO2 from logistics ..................................
SOx (Sulfur oxides) .................................
NOx (Nitrogen oxides) ...........................
VOC (Volatile organic compounds) .........

857,839 t-CO2
3,130 t-CO2
48,415 t-CO2
563 kg145 t
1,608 tn Chemical Substances [Japan consolidated]
Emissions/transfers of PRTR
law designated substances .................
499 t

Usage

n Waste [consolidated]
Waste generation ...................................

93,799 t

Recovery/Recyclingn Into Waterways [Japan consolidated]
Water pollutants .....................................
Discharge of treated wastewater ............

27 t
2,124 km3

3,724 km3

n Chemical Substances [Japan consolidated]
1,480 tPRTR law*2 designated substances .......

OUTPUT*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 and On-Site
Veriﬁcation

On-Site Veriﬁcation
Every year, Toyota Industries Head Ofﬁce’s Plant Engineering& Environment Department takes the initiative in conducting
on-site veriﬁcation of the accuracy and consistency ofenvironmental data included in the Toyota Industries Report.
The results for ﬁscal 2014 are as follows.

Fiscal 2014 Environmental Accounting*3
Scope of data collection: Toyota Industries Corporation
Period of data collection: April 1, 2013 – March 31, 2014
*3: Environmental accounting data is collected in compliance with the Ministry of theEnvironment’s Environmental Accounting Guidelines 2005 Edition.

n Environmental Conservation Cost

(Millions of yen)

FY2014FY2013
Investment Expenses Investment Expenses
Pollution prevention costs
585
427
516
761
Business Global environmental
325
3,192
113
3,167
area costs conservation costs
Resource recycling costs
144
639
10
514
Category

Upstream/downstream costs

0

343

2

80

Management costs

5

1,219

14

1,219

Research and development costs

28

1,943

0

1,872

Social contribution activity costs

0

456

—

6

Environmental remediation costs
Total

0
43
1,087
8,262
9,349

37
21
692
7,640
8,332

n Environmental Conservation Beneﬁts
Environmental Impact
CO2
Generation of waste products
Water

Comparison with Previous Fiscal Year
22,479 t decrease
5,197 t decrease(Millions of yen)

Details
Returns from sale of recycled waste products
Energy cost reductions
Cost reduction Cost reduction by resource savings(including reductions in amount of water use
and wastewater treatment costs)
Total

70

Toyota Industries Report 2014

Items to be Veriﬁed
1. Adequacy of the scope of data collection; validity of datacollection and calculation methods; validity of internalveriﬁcation
2. Trustworthiness and accuracy of collected/calculated data as
well as data reported to the Head Ofﬁce; accuracy of
methods of reporting to the Head Ofﬁce

Results

552,672 m3 decreasen Economic Beneﬁts of Environmental Conservation Initiatives
Item
Revenue

On-Site Veriﬁcation Sites
Toyota Industries Corporation• Kyowa Plant, Takahama Plant, Higashichita Plant, Higashiura
Plant
Consolidated subsidiaries in Japan• Unica Co., Ltd., Miduho Industry Co., Ltd., Iwama LoomWorks, Ltd.

Amount
4,278
190
71
4,539

1. The veriﬁed sites retained original data (evidence) for all
statistics, which were conﬁrmed valid as were the scope andmethod of data collection.
2. All discrepancies found during veriﬁcation have beencorrected after respective causes have been identiﬁed.
3. Considerations of improvements will be made for datacollected using complex collection methods that may result in
calculation errors.