Environment

Building a Recycling-Oriented Society
Basic Philosophy
In order to mitigate resource depletion and water risks,
we not only take measures for defects and yield, which
are the focus of our manufacturing divisions, but also
work on emission control and recycling involving
material and production technologies in the sourcing
divisions for contributing to the attainment of arecycling-oriented society. For water, we identify risks
in each country and region where we conduct businessglobally while also striving to reduce risks by reducing
water usage, recycling water, and returning cleaner
wastewater to the community.

Risks and Opportunities Related to Resource Recycling
We consider risks and opportunities related to resource recycling as important management issues, and we areworking on them company-wide as one of our priority issues to be addressed.
Issue

Risks

Opportunities

Response

Resource
depletion(shortage)• Improved earnings through recycling
technology and reduced material usage• Reduced earnings and production
volumehindered by difficulty in procurement of raw• Improved corporate value throughmaterials and price hikes
development of the above-mentioned
technologies• Development of more lightweight products• Development of recycling technology for
raw materials• Expanding the use of plant-derived
biomaterials and recycled materials

Water risk(quantity andquality)• Improved earnings through reuse of water• Production hindered by difficulty inand reduced water usage
securing water necessary for production• Drop in product quality due to deterioration • Improved corporate value throughdevelopment of the above-mentioned
in water quality
technologies• Production hindered by water damage• Development of water reuse technology• Expanding the use of rainwater• Review of production system andinstallation locations of electrical facilities

Waste Reduction
Establishment of 2030 Milestones

Development of Product Recycling Technology

We are working to effectively use resources such as bycurbing emissions, source measures, reducing wastes
by recycling rubber and plastic chips, and reducing
wastes by thoroughly sorting them.

Scenario for Minimizing Amount of Waste(Waste Reduction Diagram) [Non-consolidated]
Day-to-day
improvements
Percentage of waste

Post-occurrence
measures2030 Target
2025 Target line: Targets forthe 7th Environmental Action Plan

50% reduction(Compared to FY2012)

40% reduction(compared to FY2012)Manufacturingmethod development
Recycling(including developmentof recycled products)

02012

2017

2020

2025

2030

2040

DesignManufacturing Collection/recycling

Technology Development for Recycling ELV* Parts(%)

1006050

Materials

We develop and design easily recyclable products andmaterials by taking into consideration the entire
lifecycle of automobiles. We are also developing
recycling technology for waste material.

2050 (FY)TG2050 Environmental Challenge Minimization

Key item

Measures implemented

New recycling• Composite material separation technology• New recycling technology (high-quality materialrecycling)

Use of recycledmaterials invehicles• ELV parts recycling technology• Development of uses for recycled materials

Design of easilyrecyclable products• Product design for easy dismantling• Materials and composition changes for easy
recycling* ELV: End of Life Vehicle

58About Toyoda Gosei

Value Creation Story

Reduction of Waste Materials in the Production Stage
Manufacturing Collection/recycling

In 2018, we launched the Waste Reduction Project toimplement source measures and recycling initiatives.
At each plant, we are conducting inspections for all
types of waste to identify items for reducing waste byusing the genchi-genbutsu system (collecting factsand data at the actual site of the work or problem) toimplement waste reductions. We also share examplesof waste reduction with both domestic andinternational Group companies to implement waste
reduction throughout the entire Group.
Reducing Water Risks Manufacturing
Establishment of 2030 Milestones
We are assessing risks in both water usage and water
quality in Japan and international locations, andmaking improvements at high-risk locations. Even inlocations where risks are low, we are trying to reducewater intake amounts for the effective use ofresources.
Since FY2021, we have been working to reduce water
use by reducing leakage and implementing wider
recycling.

Value Creation Strategy

Foundation of Value Creation

Data

Reduction of Packaging Materials in theDistribution Stage Collection/recycling
By washing returnable boxes* more frequently andkeeping them clean, we are reducing the amount ofpackaging materials used to prevent products frombeing soiled. We are also reducing packaging materials
by putting lids on returnable boxes and making otherchanges while maintaining a balance between ensuring
product quality and reducing the amount of packaging
materials used.
* Boxes for transporting products

We are also working to systematically upgrade ourwastewater treatment facilities to produce evencleaner wastewater.
2030 Milestones for Water Risk Reduction [Global]
Item

FY2030 Target

Water quality

Measures completed
at four locations

Water intake

Measures completed
at seven locations

Water intake per sales
unit

11% decrease vs.
FY2019High risk area

Low risk area

Building Environmentally-Friendly Societies
Basic Philosophy
Based on the concept of Nature Positive, we have set
coexistence with local communities as one of thematerialities (key issues) in our efforts to build nature

coexistence initiatives to conserve biodiversity, andare working on woodlands creation, building ofbiotopes, and conservation initiatives for tidal flats.

Risks and Opportunities Related to Biodiversity

Establishment of Medium- to Long-Term Targets

We conduct initiatives by identifying risks andopportunities related to biodiversity.

We have set a “No Net Loss of Greenery” goal ofrestoring 59 hectares of greenery by 2050, which isequivalent to the area of our plants, and areconducting initiatives to achieve this goal. Specifically,
under the slogan “Connecting Activities with Water,
the Source of Life,” we are conducting initiatives in theareas of mountains, rivers, and oceans.

IssueRisks

Opportunities

Response• Reduced earnings • Business continuity by • Development ofand production
securing human
more lightweighthindered byresources and raw
products
difficulty inmaterials through• Development ofprocurement ofnature conservation
recyclingraw materials and initiatives
technology forReduction price hikes• Sustainable production raw materialsof natural• Drop in productand enhancement of • Expanding thecapitalquality due tocorporate value by
use of plantdeterioration insecuring good quality
derivedwater quality
water resourcesbiomaterials andthrough woodlands
recycled materials
creation and riverconservation

Scenario for Attaining Targets
02010

2020

2030

2050 target
02040

2050 (FY)

-10
-20
-30

-36.0
2022 results-49.0
2021 results-50 2010 results -51.0
2025 target
-45.0
-59.0
-40-602030 target• Tree planting• Woodlands creation• Use of abandoned• Solar power generation
farmland• Elimination of invasive• Building of biotopes
alien species• Overseas conservation
initiatives, and more-70ha (lost greenery area)

Woodlands creation by employees and their families

T OYODA GOSEI REP OR T 20 2359