Environmental Initiatives

Vision for Environmental Activities

P

62

Structure to Implement Environmental Management

P

63

Fifth Environmental Action PlanP

64− 65

Establishing a Low-Carbon Emission SocietyP

66− 67

Establishing a Recycling-Based SocietyP

68− 69Reducing Environmental Risk andEstablishing a Society in Harmony with NatureP70− 71

Environmental Management

P72− 73

Environmental Impact Flow and Environmental Accounting

P

74

61

Structure to Implement Environmental
Management

Vision for Environmental Activities

Global Environmental Commitment

Aiming at realizing a prosperous life in harmony
with the natural environment• 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• Development of products andtechnologies in pursuit of superiorenergy efficiency• Achievement of minimum energy
consumption through the innovationsin production engineering

Establish parameters to calculate CO2 reduction
1
volume for each productEnvironmental
Managementn Environmental Management Structure
Environmental Committee

Internal audit
Responsible internal auditor

Specialized committees•Team leader•Supervising auditors•Auditors

Product Environment Subcommittee

2 Simulate a timeline to accomplish “CO2 Cancel”
3

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

4 Promote activities to achieve these targets
5 Accomplish “CO2 Cancel”
6 Define higher targets

Chief environmental administrator

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

Production Environment Subcommittee

Admin office

Company-Wide CO2Emission Reduction Conference

Divisions
Materials Handling Equipment
VehicleEngineCompressor
Electronics
Textile Machinery

Division-Based
Promotion Committees

Environmental Audits
Toyota Industries implements annual internal environmental
audits as well as external audits carried out by anindependent third-party institute.
The external audit conducted in ﬁscal 2015 revealed one
non-conformance. We have already completed measures tocorrect it and passed on the relevant information to otherplants to prevent recurrence.
We continued to conduct internal audits under themutual, interdivisional audit system introduced in fiscal 2013.
In fiscal 2015, we strived to upgrade our auditing capabilities
by organizing audit teams with the dual goals of fostering
the development of auditors and increasing audit
efficiencies. In the area of audits, our focus was placed on
reducing environmental risks and improving environmental
performance, and we successfully clarified the degree ofcontribution by each business division’s efforts to overall
environmental management.

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

Recycling-basedsocietyLow-carbon
emission society

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.

President

Steps to Accomplishing “CO2 Cancel”

understanding of environmental management and developinternal auditors.

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

Notional Diagram of Global Environmental Commitment

CO2 Cancel

In fiscal 2015, we provided education to employees toraise the level of our environmental management. These
included introductory courses for environmental
management and environmental audits, in which the former
is for cultivating required knowledge and the latter for
gaining knowledge and techniques of internal audits.
Proactive participation by department heads and others inmanagerial positions has enabled us to increase

Vision for Environmental Activities / Structure to Implement 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 and services
that are clean, safe and of high quality. Accordingly, inFebruary 2011, we established the Global Environmental
Commitment, a speciﬁc environmental action guideline, tobe shared and implemented throughout the Toyota
Industries Group.
The entire Toyota Industries Group comprising 168
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.”

Our efforts included the successful development andrelease of such new products as internal-combustion lift
trucks with lower fuel consumption and an air compressor
for fuel cell vehicles, which offers lower energy consumption.
As a result of concerted and proactive efforts to reduce CO2
emissions from production activities, we made further
progress toward the goal of attaining “CO2 Cancel” in ﬁscal
2016.
To achieve the goal, we will continue to promote our
CO2 reduction activities both in terms of productdevelopment and production activities.

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 promotion of
consolidated environmental management.

Environmental Initiatives

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.

Conducting an introductory course for environmental audits

CO2 emissions fromproduction activitiesn Scope of Group-Wide Environmental Management (As of March 31, 2015)

Working toward “CO2 Cancel”
n What Is “CO2 Cancel”?
We have been promoting initiatives under our original
concept called “CO2 Cancel.” This refers to our aim to offset
CO2 emissions from production activities by reducing CO2
emissions via improved product efﬁciency and other means.
We have positioned this approach as a new environmental
target under the Fifth Environmental Action Plan and havebeen yielding steady, positive results.
n Activities for Accomplishing “CO2 Cancel”
Aiming to accomplish “CO2 Cancel” in ﬁscal 2016, we havebeen undertaking activities accordingly.

62

Toyota Industries Report 2015

Reduction of CO2 emissions via improved
product efficiency

EuropeJapan

n Production companies: 6

n Non-consolidated: 10 plants
n Production companies: 12

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)

Notional Diagram of “CO2 Cancel”

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

Asian Production companies: 6
Toyota Industrial Equipment Vietnam Co., Ltd. (Vietnam)
Kirloskar Toyota Textile Machinery Pvt. Ltd. (India)
P.T. TD Automotive Compressor Indonesia (Indonesia)
Toyota Industry (Kunshan) Co., Ltd. (China)
TD Automotive Compressor Kunshan Co., Ltd. (China)
Yantai Shougang TD Automotive Compressor Co., Ltd. (China)

Aichi Corporation (Saitama)
Nishina Industrial Co., Ltd. (Nagano)
HANDA Casting Company (Aichi)
Unica Co., Ltd. (Aichi)
Tokaiseiki Co., Ltd. (Shizuoka)
Altex Co., Ltd. (Shizuoka)
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)
Hara Corporation (Gifu)

Non-production companies
Japan: 23
Outside Japan: 110

North American Production companies: 9
Cascade Corporation (U.S.A.)
Indiana Hydraulic Equipment, Corp. (U.S.A.)
North Vernon Industry Corp. (U.S.A.)
Raymond-Muscatine Inc. (U.S.A.)The Raymond Corporation (U.S.A.)
Toyota Industrial Equipment Mfg., Inc. (U.S.A.)
Michigan Automotive Compressor, Inc. (U.S.A.)TD Automotive Compressor Georgia, LLC (U.S.A.)
Toyota Industries Compressor Parts America, Co. (U.S.A.)

Latin American Production company: 1
Toyota Material Handling Mercosur Indústria e Comércio deEquipamentos Ltda (Brazil)

63

Fifth Environmental Action Plann Production Related
Fifth Environmental Action Plan Targets
Segments

ﬁscal 2016, promoting activities according to the plan.
Through activities undertaken during ﬁscal 2015, we
made steady progress toward achieving respective targets
for ﬁscal 2016.

n Product Related† Targets for FY2016 undisclosed due to confidential information

Fifth Environmental Action Plan Targets
Segments

Action Policies

Specific Actions

FY2015 Achievements

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

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

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

In the R&D field, develop technologies for energy
efficiency

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
Nature64

Toyota Industries Report 2015

• 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 car
air-conditioning compressor• Improve fuel efficiency of internal-combustion lift
trucks• Reduce energy loss in electric-powered lift
trucks and improve energy efficiency offunctional units<Materials Handling Equipment Business>• Improved energy efficiency of electric lift truck<Textile Machinery Business>• Developed technologies to reduce power
consumption• Reduce energy use through lower air
consumption• Reduce power use through lower load fromwindage loss
• Reduce energy loss
• Develop new technologies that contribute toimproved energy efficiency in automobiles• 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

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• Developed lift truck engines compliant withemissions regulations ahead of schedule• Expanded the scope of substances of concern(investigated substances of concern containedin supplies)

Subject

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

Reduce CO2 emissions through green logistics

Establishing a
Recycling-BasedSociety

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

Enhance 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• Expand the use of a preliminary review system• Reduce risks related to wastewater• Appropriately manage chemical substances based onsocial conditions• Enhance risk communication with relevantorganizations and local residents

Scope

Control Items Base Year (FY) Achievements

Targets

Total
emissions

2006

-18%

-18%

Eco
efficiency*5

1.29

1.27

2006
1.42

1.47

Total
emissions

1991

-35%

-20%

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

Nonconsolidated

Eco efficiency

2007

1.54

1.09

Packagingmaterial
volumeNonEco efficiency
consolidated

2007

3.43

1.09

1.03

1.01

1.03

1.01

24 (g/m2)

24 (g/m2)

Waste
generation
volumeVOC*6emissions

In Japan
Nonconsolidated

Eco efficiency

Nonconsolidated(automobile
body)

Emissionvolume perunit ofproductionn Promoting Environmental Management

2013

—

† Targets for FY2016 undisclosed due to confidential information

Fifth Environmental Action Plan Targets
Action Policies

FY2016 Targets

Fifth Environmental Action Plan

With an eye to realizing a prosperous life in harmony with thenatural environment through the establishment of asustainable society, we have formulated the Fifth
Environmental Action Plan for the period from ﬁscal 2012 to

Action Policies/Specific Actions

Establishing a
Low-Carbon
Emission Society

Progress in the Fifth Environmental Action Plan

FY2015 Achievements

Environmental Initiatives

The results of our activities in fiscal 2015 showed steady progress across the board toward achieving respective
targets for fiscal 2016.

Specific Actions

FY2015 Achievements

Reinforce CO2 reduction activities for “CO2 Cancel”• Further reduce CO2 emitted from production activities inplants• Aim to cancel out CO2 emissions of Toyota Industries byreducing CO2 emissions through improved efficiency innewly developed products• Conducted activities for achievement of “CO2 Cancel”(Target: FY2016)

Augment and promote consolidated environmental
management• Build a global environmental management system andpromote related activities to:1) C omply with environment-related laws and reduce
environmental risks in each country2) A chieve the highest-level environmental performance ineach country• Aim for efficient and systematic corporate management byintegrating and operating environmental management
system and quality/safety management systems• Visualized environmental performance andenvironmental risk reduction measures of consolidated
subsidiaries in and outside Japan

Enhance and promote environmental education andenlightenment activities• Develop environmental specialists to lead internal
environment-related activities• Strengthen internal environment-related activities andbroaden family-friendly initiatives by planning and promoting
enlightenment activities that can be carried out at home

• Conducted environmental awareness survey among
employees, which scored 3.9 out of 5 points

Improve eco-conscious brand image• Reinforce environmental activities according to the contents
and results of Survey of Environmental Oriented
Management Index to pursue higher brand image• Toyota 1KD industrial diesel engine received a Logistics
Environmental Technology Development Award in the
15th Logistics Environmental Awards program

Augment activities related to protection of
biodiversity• Identify the impact of business activities on biodiversity andreinforce initiatives by deﬁning speciﬁc goals• Contribute to biodiversity through conservation of forestsand protection of rare species• Conducted maintenance and management activities at
Biotope of the East of Obu Station, which were jointly
carried out with the local community• Held biotope tour for students

Promote sustainable plant activities• Promote energy reduction and energy conservation throughinnovative production engineering, reduce energy loss andbuild a plant environment in harmony with nature by using
renewable energy and other means• Continually reviewed energy strategy for the medium tolong term*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

65

Establishing a Low-Carbon Emission Society

Summary

Saving Energy Used for Air Conditioning by
Introducing Coating Dry-Off Oven Exhaust
Heat Recovery Equipment

CO2 Emissions (Production Activities)
FY2015 Results

18% reduction

FY16 target:

18% reduction(vs FY06 level)(vs FY06 level)

Eco-efﬁciency (global)

1.29

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. In fiscal 2015, we promoted
energy-saving measures when installing new equipment
and carried out joint activities among the
manufacturing, production engineering andenvironment 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 thisarea, we are currently working toward a target of
attaining a 10% reduction in CO2 emissions fromprimary products by ﬁscal 2016 compared with theﬁscal 2011 level.

In fiscal 2015, as part of its ongoing activities to reduce CO2
emissions, the Takahama Plant, a development andproduction base of materials handling equipment in Aichi
Prefecture, undertook a project to reuse exhaust heat fromthe coating dry-off oven.
Previously, city gas was used to power the productcooling system required in the coating process and for air
conditioning in the plant, while exhaust heat from the dry-offoven was being emitted externally.
The project installed exhaust heat recovery equipment
suitable for the plant and succeeded in efficiently recoveringotherwise wasted exhaust heat and reusing the recovered
energy for the product cooling system and air conditioning.
As a result, annual CO2 emissions of the Takahama Plant
were reduced by about 200 tons. This project won the Most
Outstanding Practice Award in fiscal 2015 under our internalaward program to recognize excellent environmental
improvement activities.
We will continue to undertake improvement activities tofurther reduce CO2 emissions.
n Reusing Exhaust Heat

Energy1.31

Total
emissions
(kt)

800

1.00

1.21

1.00
667

756

1.36

1.23

796

1.29

858

826

1.27

1.2

Good

Heating for people

After improvement

Cooling for people

Product cooling

Dry-off oven

EnergyHeat
energyExhaust heat recovery (200–300ºC)

1.0

Energy600
400

Attained a significant reduction in fuel consumption comparedwith the previous model by installing the Toyota 1KD diesel
engine or Toyota 1FS gasoline engine, both certified asenvironmentally friendly products under our internal certification
system.
†T he models fitted with the Toyota 1KD satisfy Japan’s 2014 Non-road
Special Motor Vehicles emission regulation.

GENEO

Internal-combustion lift truck

30%
lower fuel*1

consumption(models fitted with
the Toyota 1KD)

8FD15 – 8FDJ35 (fitted with the Toyota 1ZS)

Attained a significant reduction in fuel consumption comparedwith the previous model by newly installing the Toyota 1ZS diesel
engine certified as an environmentally friendly product under ourinternal certification system.
†T he model satisfies Japan’s 2014 Non-road Special Motor Vehicles
emission regulation.

Approx.

25%
lower fuel*1

consumption

JAT810
The JAT810 air-jet loom offers a diverse
range of originally developed features,
including an air-saving system that ensureshigher energy-saving performance.
Attained significant reductions in both airand power consumption compared withthe previous model.

20%
lower air*1

consumption
volumeSummer: 12ºC

1.4
1.25

Approx.

*1: Compared with the previous model. (The percentage of reduction may vary depending on operating conditions.)
Winter: 50ºC

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

1.47

Internal-combustion lift truck

8FD35 – 8FD80 (fitted with the Toyota 1KD)
8FG35 – 8FG50 (fitted with the Toyota 1FS)

Approx.

Heat(200–300ºC)

Dry-off ovenn CO2 Emissions (Non-consolidated/Consolidated subsidiaries
in and outside Japan)

1.42

GENEO

EnergyInitiatives for Establishment of a Low-Carbon
Emission Society

1.43

For certified environmentally friendly products, see http://www.toyota-industries.com/csr/environment/product/eco5.html

Air-jet loom

Before improvement

Air conditioning thermal energy source

1.6

Toyota Industries has been proactively promoting development of eco-conscious products. To certify and showcase to
the public products that possess exceptionally high environmental performance and meet internal environmental
standards, we launched the Toyota Industries Environmentally Friendly Product Certiﬁcation System in ﬁscal 2007. With
the addition of two types of lift trucks and one textile machine in fiscal 2015, a total of 18 products have obtained
certification under this system to date.

Establishing a Low-Carbon Emission Society

Total emissions (non-consolidated)

Certiﬁcation of Environmentally Friendly Products

Environmental Initiatives

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 in our global business activities and at the same time
accelerate our efforts to develop more environment-friendly products.

Winter: 50ºC

Summer: 12ºC

Toyota 1KD Industrial Diesel Engine Received Logistics Environmental Technology
Development Award in 15th Logistics Environmental Awards Program
We developed the Toyota 1KD without using a diesel
particulate filter (DPF) and successfully attained both lower
fuel consumption and cleaner emissions by improving thefuel efficiency of the engine itself. This approach was highly
recognized and received the Logistics Environmental
Technology Development Award in the 15th Logistics
Environmental Awards program*2. The Toyota 1KD has
been fitted in our GENEO internal combustion lift trucks.
*2: Award program sponsored by the Japan Federation of Freight Industries to promote
environmental conservation and environmental awareness in the freight industry and recognize organizations/companies and individuals
which/who have contributed to achieving sound industrial growth

Toyota 1KD diesel engine

200
Good

66

0

(FY) 06

Toyota Industries Report 2015

12

13

14

15

16 (Target)

Heating for people

Cooling for people

Product cooling67

Establishing a Recycling-Based Society

Summary
Waste Generation Volume (Production Activities)
FY2015 Results

1.03(FY13 = 1.00)

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

1.03

FY16 target:

1.01 (FY13 = 1.00)

FY16 target:

1.01 (FY13 = 1.00)(FY06 = 1.00)

Our eco-efﬁciency targets in the area of waste
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). To reduce materials
losses, we engage in activities to make effective use ofresources throughout the entire supply chain, extending
the scope of our activities to our business partners.

Compiling and Disseminating Waste Disposal
Know-How within Toyota Industries

The Higashichita Plant, a production base of foundry partsand engines in Aichi Prefecture, has been reusing metal
scrap generated at our other plants as a foundry raw
material. In fiscal 2015, the plant’s efforts were geared to thereuse of copper scrap.
Previously, we purchased and used copper pellets as afoundry raw material. Among metal scrap generated at ourother plants, we verified that the reuse of enameled copper
wire scrap as a foundry raw material was possible.
Discarded wires, however, were not readily reusable
because they were tangled and it was difficult to remove a
required quantity quickly. The issue was resolved byrequesting plants generating the wire scrap to break thetangled bulk into convenient quantities.
This initiative has enabled efficient and internal reuse ofenameled copper wire scrap, which had otherwise beensold to the market as waste. In the future, we will extend ourefforts to other metal resources.

Employees in charge of waste disposal at our plants inJapan share information on case examples that lead toresource recycling and reduction of waste disposal costs,
translating their shared knowledge into Company-wide
improvement activities.
In fiscal 2015, they started compiling their know-how on
waste disposal into a Waste Disposal Handbook and issued
a part of the handbook, the Guide to the Work of Equipment
Disposal. It has been disseminated to relevant departments
and effectively utilized to ensure proper disposal andcompliance with applicable laws and regulations.

n State of Enameled Copper Wire Scrap
Before improvementn Packing Method

Establishing a Recycling-Based Society

Eco-efﬁciency (non-consolidated)

aimed at reducing the plant’s resource consumption, begin
in the product development stage. In fiscal 2015, the plantdevised a better way to pack components being deliveredfrom business partners.
Previously, individual components were delivered frombusiness partners in separate cardboard boxes, which werediscarded after operators took out components for
mounting on a product.
For newly developed products, we collaborated withbusiness partners as early as in the product development
stage and came up with simple packing by eliminating theuse of cardboard boxes and partially reusing packing
materials. The improved method successfully reduced theamount of packing materials discarded as waste.
Moreover, by delivering multiple components as a unit ina roll form, we were able to reduce man-hours required for
packing and transporting on the business partner side andthose for transporting and unpacking at the Anjo Plant.
We will continue to seek reduced use of resources in our
production activities.

Effective In-House Utilization of Metal
Resources

Environmental Initiatives

With a view to establishing a recycling-based society, we have been dedicating considerable efforts to making
effective use of resources throughout our entire supply chain.

Genchi genbutsu (go and see for yourself) confirmation of waste disposall : Component A n : Component B s : Component C

Before improvement

Initiatives for Establishing a Recycling-BasedSociety

3 types, each in a sheet form

T OPIC

Packed in cardboard boxes(discarded after unpacking)Promoting “Kaizen by Karakuri” Initiatives
to Business Partners

n Waste Generation Volume (Non-consolidated/Consolidated
subsidiaries in Japan)
Non-consolidated

Consolidated subsidiaries in Japan

Eco-efficiency (non-consolidated)
Waste
generation
volume (kt)Tangled and difficult to remove a required quantity
quickly (hard to measure)

Eco-efficiency

Eco-efficiency (Japan consolidated)

1.2 Good
1.00

1.02

1.03

1.00

1.02

1.03

131

125

1.01
1.01

After improvement

1.0

After improvement200

1/10th the time and work required forremoving components

119

100

1 type in a roll form
Good

0
(FY)

13

14

15

Stopped using cardboard
boxes and use holders(reused)16 (Target)

We have been promoting initiatives to attain kaizen(improvement) by utilizing Japan’s traditional, simple
mechanical systems called karakuri, which do not
require power generated by motors or other devices.
In fiscal 2015, we held a briefing session to explain
our “kaizen by karakuri” initiatives, in which 45
representatives from business partners and otherparties participated. Our presentation on a karakuri
pump, its structure and usage prompted lively
questions and answers. Participants took back caseexamples to achieve further kaizen in their respective
companies.

Easy to remove a required quantity quickly and use
as foundry raw material

Collaborating with Business Partners to
Reduce Use of Resources
The Anjo Plant, a development and production base ofelectronic devices in Aichi Prefecture, has been undertaking
improvement activities jointly with business partners as wellas internal departments responsible for development,
production engineering and manufacturing. These activities,
Joint review session with business partners

68

Toyota Industries Report 2015

“Kaizen by karakuri” briefing session

69

Reducing Environmental Risk and Establishinga Society in Harmony with Nature

Summary
VOC Emissions (Production Activities)
FY2015 Results

24 g/m2

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) fromthe automobile body painting process and undertook
activities accordingly. In fiscal 2015, we continued ourefforts to increase the recovery rate and enhancemaintenance and management of thinner, a solvent
used for cleaning. Consequently, emission volume perunit of production in fiscal 2015 was 24 g/m2.

Many of the chemical substances needed for our production
activities may cause adverse effects on the environment.
Thus, appropriate management of chemical substances
based on the safety data sheet (SDS) and other available
information is crucial in ensuring safe handling andminimizing potential harmful effects.
Before starting to use a chemical substance, we check
our internal system to confirm any applicable laws andregulations and usage conditions, and make sure todisseminate safety, health and environmental precautions tooperators. This allows operators to understand safe andappropriate usage, effectively preventing industrial
accidents, occupational diseases and environmental
abnormalities.
Receiving accurate information from business partners
also forms an essential part of our chemical substancesmanagement. In fiscal 2015, we concentrated our efforts on
renewing awareness among business partners for the
Briefing session for business partners

Rainwater constant monitoring systemn Toyota Industries’ Chemical Substances Pre-Evaluation System

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.
Trichloroethylene readings are available at:
http://www.toyota-industries.com/csr/environment/

Visualizing Risk through Piping Inspections
We have been promoting visualization of risks caused by the
aging of piping to respond to the revision to Japan’s Water
Pollution Control Act in April 2011 and to prevent
groundwater and soil pollution due to defects in drainage
systems.
During fiscal 2015, our four production bases in Aichi
Prefecture conducted an inspection of buried piping by
getting inside the pipes and performing a visual check or, if
pipes were inaccessible, by using self-propelled pipe
inspection cameras. The state of deterioration revealed in
the inspection was marked on the drain system blueprint ofeach plant. Based on a risk map created from these
blueprints, we will implement required measures dependingon the degree of urgency.

Installation of a System to Constantly Monitor
Rainwater
In our plant sites, rainwater is routed through a pipe, which
is separate from the drainage system of wastewater
generated in production processes, and released into asewage system.
In order to enforce strict management of both rainwater
and wastewater from production processes, we haveinstalled an oil separation tank and a system to constantly
monitor water quality.
If the system detects an indication of deteriorating water Data registration

External system

Business partner

 Request for data registration

Inside Toyota
Industries

Synchronization(such as SDS) Application

Requesting department(production engineering
dept., facilities
maintenance dept., etc.)

 ApprovalInternal system Delivery

ion

isit



u
Acq

DS

of S

th
do

Approving department(safety and health dept.
or environment dept.)

n

atio

m
for

n

er i

 Contact

Photo of the inside of a pipetaken during a piping inspection

Outside Toyota
Industries

Reducing Environmental Risk and Establishing a Society in Harmony with Nature

Emissions per unit of production(non-consolidated/automobile body)quality, it sends alerts to responsible departments andreroutes the rainwater into an emergency tank. Then,
depending on the degree of quality deterioration, we either
carry out purification at internal wastewater treatment
facilities or consign disposal to an external company toensure contaminated water is not discharged off thepremises.

importance of providing accurate information as well as on
keeping our pool of information up to date. We will continue
to seek to minimize environmental risk throughout the entire
supply chain.

Thoroughly Enforcing Management ofChemical Substances

Environmental Initiatives

We work to ensure the prevention of environmental incidents by fully enforcing the management of chemical
substances in product development and production activities and systematically monitoring drainage systems.

anEvaluation by specialized departments● Safety and health dept.: Verification of hazard and toxicity
Verification of environmental impact● Environment dept.:

User workplace

Self-propelled pipe inspection camera

70

Toyota Industries Report 201571

Environmental Management
Activity Examples of Consolidated Subsidiaries (Outside Japan)n Scope 3 Emissions by Category (FY2015)

Calculating Greenhouse Gas (GHG) Emissions
in the Supply Chainn GHG Emissions in Supply Chain (FY2015)
Scope 1
(0.4%)

Scope 3 / Other(5.2%)

Scope 2
(1.4%)U.S.A.
Introduction of Potentiometers on Electric
Induction Furnaces

TD Deutsche Klimakompressor GmbH (TDDK)North Vernon Industry Corp. (NVIC)

Fuel- and energy-related activities
not included in Scope 1 or 2
Upstream transportationand distribution

Subsidiary producing car air-conditioning
compressors

Subsidiary producing materials handling equipment
parts

Waste generated in operations

In fiscal 2015, TDDK installed a new system that allows theautomatic collection of energy consumption data of all
production lines. With the new software, TDDK is able toraise the reliability of data and reduce man-hours forcollecting data. In addition, automatic visualization of data tounderstand the trends in energy consumption make itpossible to further improve the level of consolidated
management.

NVIC has been using an electric induction furnace to melt
scrap iron, which drives up monthly electricity consumption.
To address this issue, NVIC introduced potentiometers on
the electric induction furnaces to limit the application of
power to 75% of the maximum amount. At this rate, ironcan still be melted in time to meet production schedules, but
CO2 emissions can be reduced while also decreasing
electricity consumption.
As a result, NVIC has achieved a 5.1% reduction inelectricity used per ton of iron melted in fiscal 2015
compared with fiscal 2014, reducing CO2 emissions by
3,650 tons.
NVIC is examining adding another furnace to Plant 2,
which will require modification of the power controls.

Capital goods

Business travel

1

Employee commuting
Upstream leased assets

Included in Scopes 1 and 2

Downstream transportationand distribution

Included in “Upstream transportation and distribution”

Processing of sold products

Not applicable

Website display

Use of sold products
End-of-life treatmentof sold products

Production plan

Downstream leased assets

Not applicableFranchises

Not applicable

Investments

Not applicable
1

10

Facility energy
management
software
100

1,000

10,000100,000

Calculated by using the emissions associated with
employee business travel as the baseline set at 1

Hosting a Biotope Tour for University Students
In April 2014, we conducted a tour for university students
who are members of the Life Relay Project* of our biotope,
which we have developed and completed on Companyowned idle land in Obu City, Aichi Prefecture. During thetour, we explained the concept of our biotope and livingorganisms found there and exchanged opinions on how toturn it into an even better habitat for these living organisms.

Automated

Energy load
management
softwareBy accumulating more data and streamlining
management of energy consumption, TDDK is aiming for
more effective environmental activities.

T OPICTDDK Obtains ISO 50001 Certification in
March 2015*A
 project jointly carried out by Aichi Prefecture, NPOs, companies and students with theaim of forming ecological networks by leveraging corporate green zones of the Chita
Peninsula as well as developing young environmental leaders

Scope 3 / Category 11(93.0%)

Members who made improvements
Emissions from Toyota
Industries’ businessactivities
Emissions other thanfrom Toyota Industries’
business activities

72

Toyota Industries Report 2015

Scope 1

Environmental Management

We recognize that measuring the three scopes defined by
the GHG Protocol and turning the results into specific efforts
to reduce CO2 emissions are important in creating a lowcarbon society. Scopes 1 and 2 are GHG emissions fromour business activities, the former being direct emissions
from our use of fossil fuels and the latter being indirectemissions from the use of purchased energy resulting fromgeneration of electricity by power plants and other facilities.
Scope 3 emissions are indirect emissions associated witheach product from the purchase of raw materials to end use
by customers and disposal.
In fiscal 2015, we joined the Ministry of theEnvironment’s project to support calculation of supply chain
GHG emissions for the establishment of a framework fordisclosure of environmental information. We received
assistance from NTT Data Institute of Management
Consulting, Inc. in calculating our Scope 3 emissions.
In the fiscal 2015 results, combined Scope 1 and 2
emissions accounted for 1.8% of the total emissions, with
Scope 3 emissions reaching 98.2%. The largest source ofemissions, which accounted for 93.0%, was Category 11(Use of sold products) under Scope 3. This was because
the figure included an estimate of future GHG emissions ofour products (lift trucks, vehicles, engines, etc.) throughout
their lifecycle (during use until disposal).
Going forward, we will continue to monitor GHG
emissions within the entire supply chain and accordingly
promote CO2 emissions reduction activities.

Purchased goods and services

Germany
Improving Consolidated Management ofEnergy Consumption

Environmental Initiatives

Toyota Industries engages in a range of new environmental activities, from the conservation of biodiversity tomeasuring Scope 3 emissions.

ISO 50001 is an international standard that establishes
systems and processes for various organizations toimprove energy performance on an ongoing basis andaims at reducing the emissions volume of greenhousegases and lowering energy costs. As a result ofobtaining this certification, TDDK will aim for more
effective environmental activities.

Direct emissions from Toyota Industries through theuse of fossil fuels, etc.

Indirect emissions from the use of purchased energy
Scope 2 resulting from generation of electricity by power
plants, etc.
Emissions associated with purchase of raw materials,
Scope 3 end use of Toyota Industries’ products by customers
and disposal of products

Participants of the biotope tour

73

Environmental Impact Flow and Environmental
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 Flow

INPUT
■ Energy [consolidated]
Total consumption..............................
Electricity............................................
City gas ..............................................
LPG....................................................
Petroleum products............................
Coal products.....................................
LNG ...................................................

10,852 TJ*1
1,159,847 MWh
62,108 km3N
4,989 t5,568 kl
6,489 t5,336 tR&D/Design
Procurement
Production*1: Terajoule is a unit used to measure heat. 1 TJ = 1012 joules

Transportation/Sales■ Raw Materials [consolidated]
Raw material consumption .................
700,628 t■ Water [consolidated]
Water consumption ............................
4,087 km3
■ Chemical Substances [Japan consolidated]
PRTR law*2 designated substances....
1,340 tUsage
Recovery/Recycling

OUTPUT■ Into the Air [consolidated]
CO2 ....................................................
826,437 t-CO2
Greenhouse gases other than CO2 .....
1,936 t-CO2
CO2 from logistics ..............................
35,975 t-CO2
SOx (Sulfur oxides) .............................
413 kgNOx (Nitrogen oxides).........................
134 t
VOC (Volatile organic compounds) .....
1,662 t■ Chemical Substances [Japan consolidated]
Emissions/transfers of PRTR law
463 t
designated substances....................
■ Waste [consolidated]
Waste generation ...............................
90,775 t■ Into Waterways [Japan consolidated]
Water pollutants
28 t
Discharge of treated wastewater ........
2,029 km3

*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.

On-Site Veriﬁcation

Environmental Accounting and 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 2015 are as follows.

Fiscal 2015 Environmental Accounting*3
Scope of data collection: Toyota Industries Corporation
Period of data collection: April 1, 2014 – March 31, 2015
*3: E
 nvironmental accounting data is collected in compliance with the Ministry of theEnvironment’s Environmental Accounting Guidelines 2005 Edition.

n Environmental Conservation Cost

On-Site Veriﬁcation Sites(Millions of yen)

FY2015FY2014
Category
Investment Expenses Investment Expenses
Pollution prevention costs
944
189
585
427
Business Global environmental
528
4,301
325
3,192
area costs conservation costs
Resource recycling costs
132
160
144
639
Upstream/downstream costs

0

142

0

343

Management costs

3

221

5

1,219

Research and development costs

28

1,437

28

1,943

2

628

0

456

Social contribution activity costs
Environmental remediation costs
Total

24
6
1,661
7,084
8,745

0
43
1,087
8,262
9,349

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

Comparison with Previous Fiscal Year
15,105 t decrease
4,930 t decrease
141,841 m3 decreasen Economic Beneﬁts of Environmental Conservation Initiatives(Millions of yen)

Item
Revenue

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

74

Toyota Industries Report 2015

Amount
4,919
617
63
5,599

Toyota Industries Corporation• Obu Plant, Hekinan Plant, Morioka Works, Anjo Plant
Consolidated subsidiaries in Japan• IZUMI MACHINE MFG. CO., LTD., Tokyu Co., Ltd., Aichi
Corporation

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
1. The verified sites retained original data (evidence) for all
statistics, which were confirmed to be valid as was themethod 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 resultin calculation errors.