Toyota Industries Report

2 0 12
Environmental Initiatives
An Interview with the Chief
Environmental Administrator
Vision for Environmental Activities
Structure to Implement
Environmental Management
Fifth Environmental Action Plan
Establishing a Low-Carbon Emission Society
Establishing a Recycling-Based Society
Reducing Environmental Risk andEstablishing a Society in Harmony with Nature
Environmental Management
Environmental Impact Flowand Environmental Accounting

P

58−61
P 62

63
P 64−65
P 66−67
P 68
P

69
P 70−71
P

P

72

57

Toyota Industries Report 2012

Interview

An Interview with the Chief Environmental Administrator

Looking Back on Initiatives in Fiscal 2012

The nuclear power plant outage following themassive earthquake resulted in a tight power
supply in Japan. In the Chubu region where
Toyota Industries’ plants are located, power savings
also became an urgent task as the nuclear reactors at
the Hamaoka nuclear power plant were temporarily shut
down. How do you sum up the initiatives undertaken
during this period?
Kato: Toyota Industries consumes a considerable amountof energy in its business activities, and we naturally
regarded the task of saving power as a key responsibility.
In fiscal 2012, we defined a target of reducing our peakelectricity consumption by 5% year-on-year and madeCompany-wide efforts to save power. We needed to do
everything we could.
Firstly, we introduced weekend shifts along with othercompanies in the entire automobile industry. We thenimplemented a broad range of power-saving measures at
our plants and offices. All employees made concerted
efforts to successfully achieve targets and fulfill our
responsibility to society.

Q

Senior Managing Director* Masafumi Kato

Aiming to Build a “Smart Factory”

Future Energy Strategy

Q

What energy strategy is Toyota Industries
considering for the future?

Kato: In the future, we must manage energy wisely. Thatis, we must wisely generate, wisely use and wisely store
energy. Construction of a “smart factory,” which applies
this way of thinking to energy management at plants, issomething we should pursue. This entails building aPower Saving through the Introduction of
Weekend Shifts
During the summer of 2011, the entire auto industry inJapan worked Saturdays and Sundays and tookThursdays and Fridays off in order to save electricity
and help power companies reduce peak power load.

Power-Saving Efforts at OfficeslSimultaneous use of air conditioners and electric fanslGrowing climbing plants to cover building wallslApplication of heat-blocking measures to windowslExtension of the “Cool Biz” period (allowing
employees to dress lightly during summer)

Amount reduced to help
power companies lower peak
power load

(MWh)
100

Peak Power Consumption

Results
Achieved a 5% reduction in peak power consumption(vs FY2011 level)80

Maximum power consumption from July to September

60

Reductionof 80%

Co-generation facility (Kariya Plant, Aichi Prefecture)

Fiscal 2011 results
Fiscal 2012 target

Max. power consumption(MWh/day)
100

80

20

60

* As of March 31, 2012

0FeatureToyota Industries Report 2012

A co-generation system simultaneously produces
electricity and heat from natural gas and other fuelsources. With the capability to effectively reuse thehot exhaust gas that is disposed of as waste heatin conventional power generation processes, cogeneration is considered as one promising option for
Toyota Industries’ future energy strategy.
Exterior of co-generation facility (Kariya Plant, Aichi Prefecture)

Mon.

Tue.

Wed.

Thu.

Fri.

Sat.

Sun. (Day)Preparation for Power-Saving Request under
Emergency Supply-Demand Adjustment
Contract with CHUBU Electric Power Co., Inc.
lCreated a prioritized list of equipment to shut downwhen a power-saving request is made from the powercompany in case of tight supply, and developed
standardized shutdown procedures.
lConducted training on equipment shutdown using thestandardized procedures to ensure power is saved as
requested.

40

20

0
July

AugustSeptember

An Interview with the Chief Environmental Administrator

An Interview with the Chief Environmental Administrator

40

Environmental Initiatives

Environmental Initiatives

58* Amount of CO2 emitted to generate a unit of electricity

Examples of Our Power-Saving Efforts—Our Future Energy Management—

The shutting down of nuclear power plants following
the Great East Japan Earthquake on March 11, 2011
marked a significant turning point in Japan’s nationalenergy strategy. Reflecting these circumstances,energy management has become an increasingly
critical management issue for companies. We asked
Masafumi Kato, Senior Managing Director andchief environmental administrator*, about Toyota
Industries’ future approach to energy management.

Do you feel employees’ energy consciousness
has changed through these initiatives
undertaken during fiscal 2012?
Kato: Yes, it has. But from now on, we must do morethan just saving electricity. We need to redefine our energy
strategy itself. Before the earthquake, we had focused on
the kind of electrification beneficial in terms of both costs
and CO2 emissions factor for electricity*. After theearthquake, we began to reconsider a more flexible energy
management system that does not rely on a single energy
source.

Q

59

Toyota Industries Report 2012

mechanism to efficiently and alternately supply renewableenergy and energy produced by a highly efficient power
generation system in accordance with varying levels of
demand within a plant.

Q

What specific steps should be taken?

Kato: The first step is to wisely generate energy. At Toyota
Industries, this will involve the use of co-generation
systems, renewable energy sources and biomass. We will
begin with expanding the use of co-generation systems.
In our previous efforts to promote electrification, we
had a plan to eventually reduce the use of co-generation
systems, as these offered less advantage in lowering CO2
emissions. Following the turning point, however, we
conducted an assessment from a more comprehensive
viewpoint, covering such areas asless CO2 emissions, reduction ofpeak power consumption, energy
savings and disaster prevention(use as an emergency powersource). The results revealed thatco-generation systems do provide
sufficient advantages, and wehave made a drastic shift in ourenergy policy.
Co-generation systems alsooffer excellent energy efficiency
because we can use thesesystems when necessary andutilize their waste heat to produce
steam and hot water.

Nevertheless, I believe that the use of renewableenergy sources will be the key enabler for our approach towisely generating energy.
Keeping pace with the general trend toward theincreased use of renewable energy, we will introduce andexpand the use of solar and wind power as importantenergy sources while paying close attention totechnological developments.
We are also switching from fossil fuels to biomass
fuels. As part of this effort, we started using biocoke,a solid biomass fuel, in fiscal 2012. (See page 66 formore details.)
In addition, we are also keeping our eyes on thedevelopment of a new energy generated by using
waste heat.

Q

How will Toyota Industries wisely use theresulting energy?

Kato: Changes in energy supply sources will likely entail
more complex energy management at plants. For
instance, renewable energy is weather dependent,
whereby the supply amount fluctuates with changes inweather conditions. Also, an optimum supply source mayvary depending on where power is used within a plant.
Wisely using energy means to find an optimum
combination of energy sources and maximize theadvantages of each.
Currently, on-site supervisors determine how we use
energy based on the production status and other factors.
An increase in available energy options entails more
complex management, and manual control is limited inachieving reductions in CO2 emissions and costs. It isimperative that we set up a system to totally manage
energy use in each facility.
Wisely using energy is possible when we build asystem that can save energy by automatically selecting the
optimum energy source based on weather conditions,production status and other input data.

Q

To use electricity when necessary, it will be
important to wisely store electricity.

Kato: Yes. The word “storing” reminds us of electricity
storage technology. But fuel cells, which are capable ofgenerating electricity anywhere, can also be regarded as
an effective means to wisely storing energy. We have been
conducting a feasibility test of fuel-cell lift trucks with aneye to using them as another source of electricity.
By combining technologies to wisely generate, wisely
use and wisely store energy, we will work to build an
optimum energy management system and realize a“smart factory.”

Envisioned Image of “Smart Factory”

Light duct and light control system (Takahama Plant, Aichi Prefecture)

Fuel-cell lift truck

An Interview with the Chief Environmental Administrator

An Interview with the Chief Environmental Administrator

Wisely generate energy by selecting optimum source
depending on weather conditions

EnergyWisely store excess energy

60
Toyota Industries Report 2012

Energymanagementmaanagement

Co-generation

Renewable energy

Environmental Initiatives

Environmental Initiatives

Wisely use required energy

Biomass
Solar power generation and wind power
generation (Technical Learning Center,
Aichi Prefecture)

Solar power generation (Toyota Industries Global Learning
Center, Aichi Prefecture)

Solar power generation (TD Deutsche Klimakompressor GmbH*, Germany)* A subsidiary producing car air-conditioning compressors.

61
Toyota Industries Report 2012

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. We aim torealize a prosperous life in harmony with the natural environment through the establishment of a sustainable society.

Positioning environmental response as one of its most crucial management issues, Toyota Industries is enhancing its environmental
governance through the promotion of consolidated environmental management.

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 andservices that are clean, safe and of high quality.
Accordingly, we established the Global Environmental
Commitment, a specific environmental action guideline, tobe shared and implemented throughout the Toyota
Industries Group.
We will dedicate Group-wide efforts to realizing aprosperous life in harmony with the natural environment bycarrying out activities aimed at “establishing a low-carbon
emission society,” “establishing a recycling-based society”
and “reducing environmental risk and establishing asociety in harmony with nature” as our way of “promoting
environmental management.”

Status of Our Environmental Management
SystemAiming at realizing a prosperous life in harmony
with the natural environment

Global Environmental Commitment• Change to more environmentally friendly chemicals• Minimize environmental risks• Effective use of resources at thedeveloping stage of products• Improvement of productivity interms of resources usage

Environmental risk
reduction
Society in harmony
with nature

Recycling-basedsocietyLow-carbon
emission society• Development of products andtechnologies in pursuit of superiorenergy efficiency• Achievement of minimum energy
consumption through the innovationsin production engineering

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

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.
We have also assigned the positions of responsible
internal auditor and chief environmental administrator, two
key roles in our EMS, to executives, in an effort tostrengthen governance from an environmental perspective.
Environmental Management Structure

Notional Diagram of Global Environmental Commitment
Environmental Committee

PresidentInternal audit

Specialized committees

Responsible internal auditor

Working toward “CO2 Cancel”
CO2 emissions from production activities

CO2 Cancel“CO2 Cancel” is Toyota Industries’ original concept thataims to offset CO2 emissions from production activities atplants by reducing CO2 emissions via improved productefficiency and other means. We have adopted thisapproach as a new environmental target under the Fifth
Environmental Action Plan that covers the period fromfiscal 2012 to fiscal 2016.

Notional Diagram of “CO2 Cancel”

Divisions
Materials Handling Equipment
VehicleEngineCompressor
Electronics
Logistics
Textile Machinery

Company-Wide CO2Emission Reduction Conference

As one task under the Global Environmental Commitment,
our basic policy concerning environmental activities, wehave been undertaking efforts to foster the development ofenvironmental specialists who can think and act on theirown for the environment. In doing so, we have clarified theenvironment-related knowledge and skills required foreach job category and rank, and accordingly, built anenvironmental education program.
We designate every June as Environment Month andengage in various activities, such as holding environmental
events and running articles on environment-related topics
in our in-house newsletters to raise environmental
awareness among employees as well as their families.

Division-Based
Promotion Committees

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

Scope of Group-Wide Environmental Management(As of March 31, 2012)

Steps to Accomplishing “CO2 Cancel”
1 Establish parameters to calculate CO2 reduction volume for eachNon-production companies
Japan: 24
Outside Japan: 92

product

2 Provide an estimate of when to accomplish “CO2 Cancel” based on

4 Promote activities to achieve these targets
5 Achieve these targets
6 Define higher targets (e.g., “CO2 Double Cancel”)

North America

Japan■ Non-consolidated: 10 plants■ Production companies: 14

Europe■ Production companies: 5
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)■ Production companies: 8
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.)

Asia■ Production companies: 4
TD Automotive Compressor Kunshan Co., Ltd. (China)
Toyota Industry (Kunshan) Co., Ltd. (China)
Kirloskar Toyoda Textile Machinery Pvt. Ltd. (India)
Zhejiang Aichi Industrial Machinery Co., Ltd. (China)

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

Structure to Implement Environmental Management

Vision for Environmental Activities

Reduction of CO2 emissions via improved product efficiency=T otal reduction in CO2 emissions attained by major products
which are manufactured at Toyota Industries’ plants

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

Toyota Industries Report 2012

Human Resources Development

Production Environment Subcommittee

CO2 emissions from production activities= Total CO2 emissions from Toyota Industries’ plants

the results of preliminary calculations

62

Product Technology Subcommittee

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

Toyota Industries implements annual internal
environmental audits as well as external audits carried out
by an independent third-party institute.
The external audit conducted in fiscal 2012 revealed
seven non-conformances. We have already completed
measures to correct them and disseminated the relevant
information to other plants to prevent recurrence.
As for internal audits, we were able to reduce theaverage number of non-conformances per department
from 0.86 in fiscal 2011 to 0.77. To improve the quality ofinternal audits, we are undertaking efforts to develop thecapabilities of auditors by conducting education programs
such as introductory courses for environmental
management and environmental audits. As a result,the number of internal auditors increased to 110 as ofMarch 31, 2012.

Environmental Initiatives

Environmental Initiatives[Future Activities]
The shutting down of nuclear power plants is likely to
induce a change in the CO2 emission factor for electricity
and a considerable fluctuation in production volume inJapan as we shift production operations to overseas
bases. From fiscal 2013 onward, we will clarify our targetof when to accomplish “CO2 Cancel” based on thesechanges and promote activities accordingly.

•Team leader•Supervising auditors•Auditors

Chief environmental administrator

Reduction of CO2 emissions via improved product efficiency[Establishment of Original Standards]
In fiscal 2012, we developed an original approach to apply
to products with different features to calculate CO2
reduction volume for each product.

Environmental Audits

63

Toyota Industries Report 2012

Fifth Environmental Action Plan
Under the Fifth Environmental Action Plan (fiscal 2012 – fiscal 2016), we will strive to upgrade our environmental management andactively promote initiatives to achieve fiscal 2013 targets.

Reducing Environmental Risk and Establishing a Society in Harmony with Nature
Segments

In fiscal 2012, which marked the first year of our
five-year plan, we were able to exceed targets forfiscal 2013.
In fiscal 2013, we will start defining even higher targets
for fiscal 2016 with a view toward further reducing
environmental impact while working to attain the targets
for fiscal 2013.

Progress in the Fifth Environmental Action Plan
With an eye to realizing a prosperous life in harmony with
the natural environment through the establishmentof a sustainable society, we have devised the Fifth
Environmental Action Plan for the period from fiscal 2012
to fiscal 2016, promoting activities according to the plan.

Action Policies/Specific Actions

Products

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•Develop technologies to respond toelectrification of vehicles•Improve energy efficiency of car air conditioners•Develop technologies to enable weight
reduction

Subject

Scope

FY2013 Targets
Control Items

Base Year (FY)

Targets*2-10%(FY09-13 average)

1.15

Segments

-17%

1.27
1.43

1.02

1.11

1.05

1.22

1991

-15%

-37%

2007

1.06

1.24

2006

GeneralAction Policies/Specific Actions

Products

Implement initiatives to promote 3R (reduce,reuse and recycle) design for effective resource
utilization•Reduce use of resources through weight andsize reductions

Enhance resource productivity•Reduce use of timber-derived packaging
materials
Production •Reduce the volume of discarded materials bytaking action at the source, such as improving
yields and other measures•Promote internal reuse

Toyota Industries Report 2012

Subject

Scope

Control Items

Base Year (FY)

Targets

FY2012 Achievements
Achievements

Page•Developed resource-saving
DC-DC converter*2

Packagingmaterial volume

Nonconsolidated

Eco-efficiency•Developed energy-efficient, resourcesaving electronic shedding device for
air-jet looms
2007

Nonconsolidated
Consolidated
subsidiaries

4.10

1.13

1.61

1.12

1.20

1.16

2.54

P68

In JapanWastegeneration
volume

1.06

Eco-efficiency

2006

FY2012 Achievements
Achievements

Page

*2

•Held training seminars for business
partners for creating substances ofconcern databaseP69

VOC*7 emission

Nonconsolidated(automobile
body)

Emissionvolume per unitof sales–24 (g/m2)

Base Year (FY)

Targets

25 (g/m2)

Action Policies/Specific Actions

FY2013 Targets
Subject

Scope

Control Items

FY2012 Achievements
Achievements

Page

Reinforce CO2 reduction activities for “CO2
Cancel”•Further reduce CO2 emitted from production
activities in plants•Reduce CO2 emissions by achieving
improved efficiency in newly developed
products
Aim to cancel out CO2 emissions of Toyota
Industries through these two activities•Duly considered the definition of “CO2
Cancel” and established the parameters
to calculate CO2 reduction volume

P62

Augment and promote consolidated
environmental management•Build a global environmental management
system and promote related activities to:– Comply with environment-related laws
and reduce environmental risks in eachcountry– Achieve the highest-level performance ineach country•Held meeting for consolidated
subsidiaries in Japan•Disseminated information regarding
plant-related laws and regulations•Confirmed compliance through checksheets

P63

Enhance and promote environmental
education and enlightenment activities•Develop environmental specialists to leadinternal environment-related activities*8•Held lecture on the environment•Introduced internal eco-point system

Improve eco-conscious brand image•Reinforce environmental activities according
to the contents and results of Survey ofEnvironmental Oriented Management Index
to pursue higher brand image•Won the best award at the Aichi Green
Curtain Contest for wall greening
activities•Introduced super environmentallyfriendly products on website

Augment activities related to protection of
biodiversity•Identify the impact of business activities
on biodiversity and reinforce initiatives bydefining specific goals•Promoted plan for establishing abiotope

Promote sustainable plant activities•Build a plant environment in harmony withnature by promoting energy reduction andenergy conservation through innovative
production engineering, by reducing energy
loss and by using renewable energy andother means•Formulated mid- to long-term energy
strategies*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: Details undisclosed due to confidential information and other reasons*3: As of March 31, 2012; survey by Toyota Industries*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: Substances of Very High Concern*7: Volatile Organic Compounds*8: Specific targets are set separately and progress achieved is disclosed via the Company Website or Toyota Industries Report and other media.

P70/71Fifth Environmental Action Plan

Fifth Environmental Action Plan

Establishing a Recycling-Based Society
FY2013 Targets

Targets

Environmental Initiatives

Environmental Initiatives

1.32

Base Year (FY)

Promoting Environmental Management

P66/671991

Control Items•Developed diesel engines with low
emissions•Expand the use of a preliminary review
system•Reduce risks related to wastewater•Enhance risk communication with relevantorganizations and local residents<Textile Machinery Business>•Developed energy-efficient, resourcesaving electronic shedding device for
air-jet looms

NonPromote energy reduction and energy
Total emissions
consolidated
conservation through innovative production
technologies
Global•Promote visualization of energy loss
CO2 emissions•Further promote Company-wide reduction•EnergyNonactivities and accelerate thorough, horizontal
derived CO2
consolidated
Production deployment•5 gases*4•Develop innovative technologies to reduce CO2
Consolidated Eco-efficiency*5•CO2 fromemissionssubsidiaries inlogistics
Japan
Promoting measures to curb global warming
Consolidated•Promote horizontal deployment of technologies
subsidiaries
to curb global warming
outside Japan
Reduce CO2 emissions through green logistics
Total emissions•Promote modal shift
NonCO2 from
Logistics •Reduce the number of transportation vehicles
logistics
consolidated
by promoting mixed transport among businessEco-efficiency
divisions

ScopeManage chemical substances contained in
products•Investigate chemical substances containedin products and manage switching over of
SVHC*6 and other substances of concern toother substances
Further reduce emissions of substances ofconcern•Reduce emissions of substances of concern
mainly from painting processes<Materials Handling Equipment Business>•Developed energy-efficient electric lifttruck

In the Textile Machinery Business, develop
technologies and products that will contribute to
reduction of CO2 emissions•Reduce energy loss

Segments

Products

Page<Automobile-Related Business>•Developed highly efficient variabledisplacement compressor•Developed highly efficient electriccompressor•Developed the world’s largest*3
panoramic roof made of plastic glazing

In the Materials Handling Equipment Business,develop technologies and products that willcontribute to reduction of CO2 emissions•Reduce energy loss in electric-powered lift
trucks64

FY2012 Achievements
Achievements

FY2013 Targets
Subject

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

Production Minimize environmental risks

Establishing a Low-Carbon Emission Society
Segments

Action Policies/Specific Actions

65

Toyota Industries Report 2012

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 have been working to
reduce CO2 emissions by improving product efficiency through technological innovation, encouraging energy saving and less consumption ofenergy during production activities and promoting green logistics.

Internal Award Program to Recognize
Environmental Improvement Activities
In fiscal 2011, Toyota Industries established an internalaward program to recognize excellent environmental
improvement activities undertaken at production sites
and offices. The program’s purposes are to share bestpractices to raise the level of environment-related
activities throughout the Company.
In fiscal 2012, with the intent to further motivate
employees to take action, we reviewed the system toassess the process of activities from a broader
perspective. We received applications from eachbusiness division such as measures to reduce CO2
emissions and save power. Four projects were selected
to receive either a “Best Practice Award” or “Excellent
Practice Award.”
We will continue to refine our award program toencourage more environmental improvement activities
and contribute to the generation of excellent ideas.

Reduction of CO2 Emissions through Introductionof Biocoke*C arbon neutrality refers to the concept that the amount of CO2 generated byincinerating a plant is offset by the amount of CO2 absorbed by the plant throughphotosynthesis in the process of its growth, thus causing no increase/decrease in theamount of CO2 in the atmosphere.

In a vehicle painting line, we generate a downward airflow
at a constant speed to prevent unnecessary dispersion of
the sprayed paint.
We worked to reduce the amount of airflow in order toreduce energy consumption.
We first moved the spray nozzles closer to the vehicle
body and adjusted the discharge pressure and amount to
reduce dispersion. We then set the amount of airflow at alevel sufficient to prevent the paint from being sprayed on
the next vehicle body on the line, thereby reducing theamount of airflow by about 60%.
Consequently, we successfully reduced annual CO2
emissions by approximately 270 tons.

Paint spreading toa large area

New Electronic Shedding Device with Excellent
Energy-Saving Performance
An air-jet loom electronic shedding device creates avertical space between the raised and lowered warp
threads through which to insert weft yarn. It allows theweaving of complex-patterned fabrics by controlling thetiming of the raising or lowering of warp threads.
In May 2011, Toyota Industries developed a newelectronic shedding device that offers an excellent energysaving feature while maintaining the same level of weaving
performance as conventional electronic shedding devices.
This new device is equipped with an improved
decelerator and motor, which improves performance
during high-speed operation. At the same time, byrecovering energy generated in the deceleration process,power consumption of the new device has been reducedby more than 10%.

Direction of line flowMore exhaust air (downflow)

Applying a strong downflow to prevent the paint frombeing sprayed on the next vehicle body

JAT710 air-jet loom equipped with the optionally available electronic shedding device

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

Consolidated subsidiaries in Japan

Eco-efficiency (non-consolidated)

Direction of line flow

1.34

1.4

1.00

Total
emissions
(kt)

1.00

800

Wood chips

1.10
762
596

600

400

Biocoke

1.0

679

666

Applying the minimum required amount of downflow andstill being able to maintain the level of quality

Heat andcompress

1.06

734

Less exhaust air (downflow)

1.2

1.18

305

Good

Establishing a Low-Carbon Emission Society

Establishing a Low-Carbon Emission Society

1.27

1.17

Production of Biocoke

200

Good

Toyota Industries Report 2012

1.43

1.24

Tea grounds

66

Eco-efficiency
1.6

Paint spreading to a smaller area,
not settling on the next vehicle

On-site assessment

Awards ceremony

Consolidated subsidiaries outside Japan

Eco-efficiency (consolidated)

Environmental Initiatives

Environmental Initiatives

The Engine Division accounts for 37% of Toyota Industries’
total CO2 emissions generated, with its main emission
source being the incineration of coal coke in the cast ironmelting process.
In order to reduce CO2 emitted from the melting
process, the Engine Division rolled out an initiative toreplace coal coke with biocoke, which has a zero CO2emissions factor.
In fiscal 2012, which was the first year of the initiative,
we aimed to replace 4% of coal coke with biocoke and to
reduce annual CO2 emissions by 500 tons.
Biocoke is a solid biofuel produced by heating andcompressing biomass such as wood chips from thinned
trees or tea grounds thrown away by beverage
manufacturers. It is an excellent fuel substitute because of
its carbon neutrality*, but provides less heating power forthe melting process and a lower amount of carbon neededin the resulting molten metal compared with coal coke,making it difficult to maintain the quality of our products.
To compensate for the insufficient heating power, weincreased the amount of biocoke used in the melting
process. To solve the problem of an insufficient amount ofcarbon, we added petroleum coke, which contains
roughly the same amount of carbon as coal coke, anddetermined the optimal mix through a number ofoperational tests.
These efforts resulted in a reduction in annual CO2
emissions by 650 tons, which exceeded the target.

Reduced Airflow in Vehicle Painting Line to
Reduce Energy Consumption

0(FY) 91

06

09

10

11

12

67

Toyota Industries Report 2012

Establishing a Recycling-Based Society

Reducing Environmental Risk andEstablishing a Society in Harmony with NatureWith a view to contributing to the establishment of a recycling-based society, we have been reducing our resource consumption
through the promotion of 3R (reduce, reuse and recycle) design and improvement of resource productivity.

We have been striving to reduce emissions of substances of concern by implementing thorough management of chemical
substances in product development and production activities.

Recovery and Reuse of Steam Drainage Water*1
from Washing Equipment
Toyota Material Handling Japan (TMHJ), responsible for
Toyota Industries’ Materials Handling Equipment Business,
reduced the amount of water used in the pre-paintwashing process.
Previously, steam was used to heat washing water
to maintain its temperature at a constant level. Drainage
water liquefied from used steam had been disposed ofas wastewater. However, the results of a water quality
analysis revealed that this drainage water retained
the level of quality suitable for use as washing water.
TMHJ consequently decided to recover and reuse it aswashing water.
This helped TMHJ reduce annual consumption ofwater provided by public water supply by about 4,000 m3.
As hot recycled water of approximately 80ºC is added to
the washing water, less steam is required for the heatingprocess, leading to a reduction in annual CO2 emissions
by about 50 tons.

Reduction of Waste by HANDA Casting Company
HANDA Casting Company, a consolidated subsidiary inJapan that produces foundry parts for lift trucks, reduced
the amount of waste generated in the shot blastingprocess used to apply surface treatment tocounterweights*2.
Used blasting sand generated from this processcontains pulverized steel shots (pieces of iron) or ironpowder. Because of these contents, it was not suitable forrecycling.
In fiscal 2011, through a joint project with amanufacturer, HANDA Casting succeeded in separatingthese impurities from used blasting sand and reduced theannual amount of waste by approximately 480 tons.
*2: A weight installed in the rear of a lift truck to maintain balance with the cargo load

Vibration-sifter

Used blasting sand*1: Hot water liquefied from steam, which occurs when heat is removed from steam in
the heating process
First magnetic separator(1,000 gauss)

Greater Resource Efficiency for
DC-DC Converters

Second magnetic
separator(3,000 gauss)
Small iron pieces

Before improvement
Iron powder
Sand for reuse

Finished product• Coating also applied tounnecessary portions
Workpiece • Need to clean jigs

Waste Generation Volume(Non-consolidated/Consolidated subsidiaries in Japan)
Eco-efficiency (Japan consolidated)

1.79
1.57

1.22

185

Good

0
(FY)

06

09

Good

1.6
1.20

1.4
1.2
1.0

230

200

1.16

1.8

154

168

171

10

11

12

Eco-efficiency

300

1.08

1.00
1.00

1.56

1.61

Toyota Industries carries out surveys and purification ofsoil 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 from substances covered by the Soil
Contamination Countermeasures Law as well as fromgrease and oils, we have drilled observation wells at allplants to conduct regular checks.
Trichloroethylene Readings
Plant

FY2008FY2009FY2010FY2011FY2012

Kariya Plant

0.99

0.67

0.67

0.41

0.38

Kyowa Plant

0.79

0.72

0.34

0.41

0.48

Weighted average concentration in groundwater (mg/l)
Finished product• Sufficient coating
only applied toWorkpiece necessary portions• Cleaning jigs notnecessary

Study Sessions for Business Partners on
Management of Chemical Substances

Consolidated subsidiaries in Japan

Eco-efficiency (non-consolidated)

Roll coating
methodSoil and Groundwater Pollution
Countermeasures

Toyota Industries uses a chemical substance management
system to accumulate data on materials used andchemical substances contained in all of its products for the
purpose of confirming applicability when new regulations
come into effect in a country or region.
An appropriate applicability check requires compilationof accurate data. Since fiscal 2007, we have been carryingout activities to help our business partners that create theirown databases to understand the importance of chemical
substances management and holding study sessions on
how to compile accurate data.

Status of Compliance with Environmental Laws
In fiscal 2012, there was one instance in which effluentsfrom the plant exceeded standard values at one subsidiary
within the Toyota Industries Group. This incident has beenreported to the relevant authorities, and corrective
measures have already been completed by the subsidiaryconcerned. Subsequent confirmations have also been
made to ensure that there are no recurrences.
We will step up our efforts to prevent environmental
risks by sharing information on environment-related
incidents throughout the Toyota Industries Group,
including their causes and countermeasures taken. We will
also continue to augment Group-wide efforts to minimize
environmental impact by conducting contingency training
for emergency situations and other proactive measures.

Reducing Environmental Risk and Establishing a Society in Harmony with Nature

Initiatives for Establishinga Recycling-Based Society

Waste generation volume (kt)

Establishing a Recycling-Based Society

Toyota Industries Report 2012

Spray coating
methodIron (for sale)

100

68

After improvement

Large iron pieces

Mechanism to separate impurities from used blasting sandNon-consolidated

DC-DC converter fitted in the Aqua

We apply resin coating to pistons, a car air-conditioning
compressor part, to ensure smooth piston movement andairtightness.
The conventional method, which sprays resin on theentire piston, causes resin to spread and settle on
unnecessary portions of the piston and on jigs, using moreresin and energy than necessary.
In 1998, we started introducing a roll coating methodthat uses rollers to transfer resin onto a piston surface.
This method only applies coating where necessary,
resulting in the reduction of the required amount of resin
and thus the usage of chemical substances.
By fiscal 2012, we adopted the roll coating method in
all our 14 coating lines. Compared with the conventional
spraying method, annual VOC (volatile organic compound)emissions were reduced by about 249 tons and annual
emissions of PRTR (Pollutant Release and Transfer
Register) law designated substances decreased byapproximately 42 tons.
A reduction in air consumption and elimination ofdrying furnaces also reduced annual CO2 emissions by
about 4,600 tons.

These activities
have proven effectivein raising awarenessfor the proper
management of
Study session for business partners
chemical substancesamong business partners throughout our supply chain andbeen contributing to the establishment of a safe society
not affected by any harmful substances.

Environmental Initiatives

Environmental Initiatives

A DC-DC converter is primarily used on hybrid vehicles(HV) to downconvert the high voltage used for the drive
motor to a level suitable for operating lights, wipers, horns
and other auxiliary devices.
In December 2011, we developed an approximately
44% lighter DC-DC converter with smaller components
and fewer parts compared with our existing DC-DC
converters. A fewer number of fastening screws resulted inan easier-to-dismantle structure, contributing to higher
recycling efficiency. The new DC-DC converter is fitted in
the Aqua (Prius c in North America), a hybrid vehicle byToyota Motor Corporation.

Environmental Improvement through Adoptionof a New Piston Coating Method

69

Toyota Industries Report 2012

Environmental Management
Eco Character

Toyota Industries promotes the development of human resources capable of taking their own initiative regarding the environment in order tocarry out activities specified under the Fifth Environmental Action Plan and achieve its targets.

Mr. Ukyo Katayama“Make Electricity” event (Nagakusa Plant, Aichi Prefecture)

In addition to Company-wide events, individual plants
held various events, and many employees have joined theeco-point program.
According to the results of a questionnaire on thisprogram, approximately 85% of Toyota Industries’
employees responded that they have become moreenvironmentally aware through these activities.
We will carry out continuous activities to maintainemployees’ interest in environmental issues andencourage them to take environment-conscious actions
both in the workplace and at home.
We will also work to refine the program to contribute to
the conservation of the environment in surrounding areas.

Voice of Program Organizer
We have rolled out this program to encourage employees
and their families to take environment-conscious actions witha sense of enjoyment. We will continue to plan events andactivities in which they can participate easily to help each
person increase his or her environmental awareness.

A green curtain covering
a wall of the officebuilding

Water sprinkling activities to lower surface temperature(Kariya Plant, Aichi Prefecture)

TIEM Received Environmental Award
Toyota Industrial Equipment Mfg., Inc. (TIEM), a U.S.based subsidiary producing lift trucks, was awarded
The 2011 Indiana Governor’s Award for Environmental
Excellence.
This award is given to companies carrying out
business activities and decision-making based on
excellent environmental strategies. TIEM, recognized for its
numerous achievements through five years of continuous
environmental improvement activities, received this award
for the third time.
Results of TIEM’s Five-Year Environmental
Improvement Activities
Achievements included reducing VOC emissions by 55%,
air pollutant emissions by 34%, industrial waste generation
by 62% and water consumption by 24%.

Employees planting morning glory seedlings

Introduction of Internal Eco-Point System
To raise environmental awareness among employees andtheir families, Toyota Industries introduced an internal
eco-point system in April 2011. Under the slogan “Let’slead a more ecological lifestyle,” the program gives ecopoints to employees and their families who make
improvement proposals for protecting the environment or
participate in lectures and other environmental events.
These points can be exchanged for eco-friendly products.

Program organizers in the Plant Engineering & Environment Department
handing out leaflets to promote the eco-point system

Awards ceremony

Environmental Management

Environmental Management

Kizuki-no-Ki made up of participants’ declarations

For the purpose of saving electricity during the summer
and raising the environmental awareness of employees,
the Kariya Plant (Aichi Prefecture) carried out a “wallgreening” project to grow a shady “green” curtain, sevenmeters high and 90 meters wide, to cover a wall of its
office building.
In June 2011, about 200 employees participated in an
event to plant morning glory seedlings. We devised ways
to continuously gain employees’ attention, including
posting records of the morning glories’ growth on the
Intranet, thereby successfully raising their environmental
awareness. The curtain of morning glories effectively
reduced the amount of electricity used by air conditioners
by about 10%.
This project was highly praised by externalorganizations and received the Best Award in the Factory
Category in the Aichi Green Curtain Contest sponsored by
Aichi Prefecture.
We will continue this wall greening project, extending
activities to other plants.

Environmental Initiatives

Environmental Initiatives

Toyota Industries
organizes anenvironmental lecture
every year for raising
the environmental
awareness of its
employees.
WorkshopIn fiscal 2012, we
invited Mr. Ukyo Katayama, formerly an F1 driver and now
an alpinist, as a lecturer, and Professor Noriyasu Kunori ofToyama Prefectural University as an interviewer to talkabout what everyone can do now for the environment.
About 170 employees attended the lecture.
Mr. Katayama spoke about matters such as whatmade him think about environmental issues and how hedecided to take personal action in his everyday life.
A workshop was held at the end of the lecture, andeach participant wrote down on paper a personaldeclaration of one environmentally friendly action each will
take. We pasted these sheets together to create theshape of a tree and named it Kizuki-no-Ki (a tree of small
realizations). Some participants declared that they would
strive for eco-driving and others decided to be a rolemodel for their children. Through this workshop, we
realized thateveryone’s small
actions will become a
big force in protecting
the environment.

Toyota Industries Report 2012

Activities in Fiscal 2012 (Examples)

Wall Greening Activity Received the Best Awardin Aichi Green Curtain Contest

Lecture on the Environment

70

ECOROP“ECOROP” is our corporate eco character
selected from 112 character designs
solicited from employees. A water droplet
and leaves symbolize the environment,
and the word “ECO” is positioned on its
forehead to resemble our corporate logo.

71

Toyota Industries Report 2012

Environmental Impact Flow andEnvironmental Accounting
In this section, we provide an overall picture of environmental impact resulting from our global business activities andreport the results of environmental accounting (environmental conservation cost, environmental conservation benefits andeconomic benefits of environmental conservation initiatives).

Environmental Impact Flow
Environmental Impact Flow

INPUT

■Energy [consolidated]

Total consumption ........................... 9,800 TJ*1
Electricity ...................................980,640 MWh
City gas....................................... 77,977 km3N
LPG ......................................................4,105 t
Petroleum products.............................. 5,178 kl
Coal products ........................................6,346 t
LNG ......................................................5,720 t

R&D/Design

OUTPUT■Into the Air[consolidated]

Procurement

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

Raw material consumption .................576,355 t■Raw Materials[consolidated]■Water [consolidated] Water consumption...........................6,035 km3■Chemical Substances PRTR law*2 designated substances.........1,726 t[Japan consolidated] *2: Short for Pollutant Release and Transfer Register, theTransportation/
Sales■Chemical Substances[Japan consolidated]■Waste [consolidated]■Into Waterways[Japan consolidated]

CO2............................................724,338 t-CO2
Greenhouse gases other than CO2 ...3,329 t-CO2
CO2 from logistics .........................34,028 t-CO2
SOx (Sulfur oxides)................................. 692 kg
NOx (Nitrogen oxides)................................190 t
VOC (Volatile organic compounds)...........1,698 t
Emissions/transfers of PRTR law
designated substances...........................781 t
Waste generation...............................298,057 t
Water pollutants..........................................29 t
Discharge of treated wastewater........2,510 km3

Usage

PRTR law is a scheme whereby businesses measure therelease and transfer of PRTR-designated pollutants andreport their performance to the government. The
government then compiles this data and releases it to
the public.

Recovery/
Recycling

Environmental Accounting and On-Site
Verificationn Fiscal 2012 Environmental Accounting*3

Scope of data collection: Toyota Industries Corporation
		
TIBC Corporation
Data collection period: April 1, 2011 – March 31, 2012
*3: E
 nvironmental accounting data is collected in compliance with the Ministry of theEnvironment’s Environmental Accounting Guidelines 2005 Edition.

Environmental Conservation Cost
Category

Environmental Initiatives
Environmental Impact Flow and Environmental Accounting

72

Pollution prevention costs
Business Global environmental
area costs conservation costs
Resource recycling costs
Upstream/downstream costs
Management costs
Research and development costs
Social contribution activity costs
Environmental remediation costs
Total

FY2012
Investment Expenses
257
1,028
345

3,264

32
721
−
49
263
1,231
3
1,260
−
8
3
9
903
7,570
8,473

(Millions of yen)

FY2011
Investment Expenses
246
1,371
233

2,872

20
562
6
4
2
1,130
3
152
4
13
−
9
514
6,113
6,627

Environmental Conservation Benefits
Environmental Impact
CO2
Generation of waste products
Water

Comparison with Previous Fiscal Year7,735 t decrease
2,004 t increase
95,934 m3 decrease

Economic Benefits of Environmental Conservation Initiatives(Millions of yen)

Item
Revenue
Cost reduction
Total

Toyota Industries Report 2012

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

Amount
4,656
49
(19)
4,686

n On-Site Verification

Every year, Toyota Industries Head Office’s Plant
Engineering & Environment Department takes the initiativein conducting on-site verification of the accuracy andconsistency of environmental data included in the Toyota
Industries Report. The results for fiscal 2012 are as
follows.
[On-Site Verification Sites]
Obu Plant:	Production of car air-conditioning
compressor parts
Morioka Works:
Production of automotive parts
Tokaiseiki Co., Ltd.:	Production of parts for car
air-conditioning compressors
and engines[Items to be Verified]
1. A
 dequacy of the scope of data collection; validity ofdata collection and calculation methods; validity ofinternal verification
2. T rustworthiness and accuracy of collected/calculated
data as well as data reported to the Head Office;accuracy of methods reported to the Head Office[Results]
1. T he verified sites retained original data (evidence) for all
statistics, which were confirmed valid as were thescope and method of data collection.
2. A
 ll discrepancies found during verification have beencorrected after respective causes have been identified.
3. C onsiderations of improvements will be made for datacollected using complex collection methods that may
result in calculation errors.