Environmental Initiatives
Vision for Environmental Activities
P60
Structure to Implement Environmental Management
P61
Sixth Environmental Action PlanP62–63
Establishing a Low-Carbon Emission Society
P64–65
Establishing a Recycling-Based Society
P66–67Structure to Implement Environmental Management
Reducing Environmental Risk andP68–69Establishing a Society in Harmony with Nature
Environmental Management
P70–73
Environmental Impact Flow and Environmental Accounting
P74
Third Party Assurance of Environmental Performance Data
P75

Positioning environmental response as one of its most
crucial management issues, Toyota Industries is enhancing
its environmentally oriented corporate management ona global basis through the promotion of consolidated
environmental management.

Vision for Environmental
Activities
We have defined our aspirations in 2050 and launched the
Sixth Environmental Action Plan in fiscal 2017.

As one tenet under our Basic Philosophy, Toyota Industries
works to contribute to regional living conditions and social
prosperity and also strives to offer products and services
that are clean, safe and of high quality. Accordingly, inFebruary 2011, we established the Global Environmental
Commitment, a specific environmental action guideline,
to be shared and implemented throughout the Toyota
Industries Group. The entire Toyota Industries Group will
dedicate concerted efforts to realizing a prosperous life inharmony with the natural environment.

1 Establishing a low-carbon emission society
Globally take on challenge of establishing a zero CO2emissions society Establishing a recycling-based society
Take on challenge of minimizing the use of resources Reducing environmental risk and establishing a society inharmony with nature
Generate positive influence on biodiversity Promoting environmental management
Enhance consolidated environmental management andpromote enlightenment activities

As a milestone toward achieving our aspirations in 2050,
we have formulated the Sixth Environmental Action Plan, a
new five-year plan for the period from fiscal 2017 to fiscal
2021, and will resolutely undertake activities in accordancewith the plan.
(See the Sixth Environmental Action Plan on pages 62–63 for details.)

TOPIC
Aiming at realizing a prosperous life inharmony with the natural environment

n Environmental Management Structure
Environmental Committee

PresidentInternal audit
Responsible internal auditor

Specialized committees•Team leader•Supervising auditors•Auditors

Product Environment Subcommittee

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

Company-Wide CO2 Zero
Emissions Challenge Subcommittee

Division-Based
Promotion Committees

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

We created a panel summarizing our newly formulated
aspirations in 2050 and the Sixth Environmental Action Plan.
Each Group company has posted this environmental panel
to raise employee awareness and appeal our approach tooutside parties.

Environmental risk
reduction
Society in harmony
with nature
Low-carbon
emission society

Sharing Environmental Vision acrossthe Toyota Industries Group

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. In August
2016, another specialized committee, the Plant CO2 Zero
Emissions Challenge Subcommittee, was established.

Recycling-basedsociety

Introductory course for environmental auditsn Main Companies Subject to Consolidated Environmental Management (As of March 31, 2017)

Environmental Management

Notional Diagram of Global Environmental Commitment

nn Aspirations in 2050 and the Sixth
Environmental Action Plan

Tokyu Co., Ltd.

The Global Environmental Commitment, which represents
our basic approach to environmental activities, specifies thefour action themes, namely, 1) establishing a low-carbon
emission society; 2) establishing a recycling-based society;3) reducing environmental risk and establishing a society
in harmony with nature; and 4) promoting environmental
management. For each action theme, we have defined ouraspirations in 2050.

EuropeJapan

Toyota Material Handling Manufacturing Sweden AB (Sweden)
Toyota Material Handling Manufacturing Italy S.p.A. (Italy)
Toyota Material Handling Manufacturing France SAS (France)
L.T.E. Lift Truck Equipment S.p.A. (Italy)
TD Deutsche Klimakompressor GmbH (Germany)
Uster Technologies AG (Switzerland)n Non-consolidated: 10 plants
n Consolidated subsidiaries in Japan

Asia
Toyota Industrial Equipment Vietnam Co., Ltd. (Vietnam)
Toyota Industries Engine India Private Limited (India)
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)
Tailift Material Handling Taiwan Co., Ltd. (Taiwan)

Aichi Corporation (Saitama)
Nishina Industrial Co., Ltd. (Nagano)Takeuchi Industrial Equipment ManufacturingCo., Ltd. (Aichi)
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)

Vision for Environmental Activities / Structure to Implement Environmental Management

nn Global Environmental Commitment

Aspirations in 2050

Following the revision of the international standard ISO
14001 in September 2015, we reviewed our Environmental
Management Manual and redefined its regulations. In
August 2016, we initiated activities based on the new
regulations and have been working to thoroughly inform
employees in each business division.
We are enhancing our environmental managementby conducting introductory educational courses to foster
knowledge for environmental management.
As for knowledge and techniques of internal audits, weoffer an introductory educational course for environmental
audits with a view to developing auditors. In relation, we
provided education on the 2015 regulations to those
persons who have already been qualified as auditors. By
having these auditors who have taken the course perform
internal audits, we monitor the progress of each department
in conforming to the revised standard.

Environmental Initiatives

nn Promotion of Environmental
Management Systemnn Response to the Revised ISO 14001
Standard

North America
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 America
Toyota Material Handling Mercosur Indústria Comércio deEquipamentos Ltda (Brazil)

TOYOTA L&F Shizuoka Co., Ltd.

60

Toyota Industries Report 201761

Sixth Environmental Action Plan
The results of our activities in fiscal 2017 showed steadyprogress across the board toward achieving respective
targets for fiscal 2021.

n Product Related
Sixth Environmental Action Plan Targets
Segments

Action Policies

Establishing a
Implement initiatives to promote 3R
Recycling-Based (reduce, reuse and recycle) design forSocietyeffective resource utilization• Reduce use of resources through longer productlife• Reduce use of resources through standardization,
modularization and reduction of components• Reduce use of resources through development oftechnologies to enable weight reduction anddownsizing• Promote reuse of components and resources• Developed 4-wheel counterbalanced electric
lift truck• Developed DC-DC converter for plug-in hybrid
vehiclesn Production Related

Reduce emissions to improve air
quality in urban areas in all countries
and regions• Develop engines that meet future regulations• Developed engine compliant with AustralianEURO 5 emissions regulations

FY2017 Achievements
Segments

Establishing a
Low-Carbon
Emission Society

Action Policies/Specific Actions

Reduce CO2 emissions from production
activities• Develop and introduce productionengineering technologies with lower
CO2 emissions• Reduce CO2 emissions by fully
implementing improvement activities
on a daily basis• Develop innovative CO2 reduction
technologies that utilize clean energy• Manage greenhouse gases other than
CO2

Reduce CO2 emissions from productionrelated logistics• Improve transportation efficiency
through such measures as modal shift
and better cargo loading efficiency

Establishing a
Recycling-BasedSociety

Promote measures against resource
depletion by recycling waste• Reduce the volume of discarded
materials by taking action at thesource, such as improving yields andother measures• Promote internal reuse
Promote effective resource utilization in
production activities• Reduce use of packaging materials• Monitor water input and output in eachcountry/region and develop andpromote appropriate measures

Subject

FY2021 Targets

Scope

Control Items

Base Year(FY)

Achievements

Targets

Manage chemical substances
contained in products• Investigate chemical substances contained in
products and manage switching over of SVHC*3
and other substances of concern to othersubstances• Supported chemical substance management
at consolidated subsidiaries• Conducted survey on chemical substances
contained in products

Nonconsolidated

Total
emissions

2006

–20%

–10%

–22%

–26%

Reducing
Environmental
Risk and
Establishing aSociety inHarmony with
Naturen Others
Sixth Environmental Action Plan Targets

GlobalCO2emissions
Nonconsolidated

CO2
emissionsfromlogistics

Nonconsolidated

Emissionvolume perunit ofproduction*1

Emissionvolumeper unit ofproduction

2006
–27%

2007

–29%
Emissionvolume perunit ofproduction

Reducing
Environmental
Risk and
Establishing aSociety inHarmony with
NatureAction Policies

Augment activities related toprotection of biodiversity–28%
Augment and promote consolidated
environmental management

Japan
consolidated
Waste
generation
volume–35%–30%

Segments

–27%

2006

Nonconsolidated

–30%

–29%

Promoting
Environmental
Management

62

Toyota Industries Report 2017

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

VOC*2
emissions

Nonconsolidated(automobile
body)

Emissionvolume perunit ofproduction

2006

–36%
(24g/m2)–36%(24g/m2)

FY2017 Achievements• Share the biodiversity guidelines across all Toyota
Group companies and contribute to the expansionof a habitat for living organisms• Participated in All Toyota Green Wave Project• Formulate and promote plans to link activities and• Devised plans for biodiversity protection
bring more greenery by undertaking activities for
activities within company premises
conservation of biodiversity throughout the Toyota
Industries Group, including at consolidated
subsidiaries in and outside Japan• Build a global environmental management systemand promote related activities to:Comply with environment-related laws in eachcountry and region
Formulate a medium-term plan based on
visualization of environmental risks and conduct
activities to prevent risks from occurring
Enhance risk communication with relevantorganizations and local residents
Achieve the highest-level environmental
performance in each country and region• Implemented measures for wastewater risks• Diagnosed environmental risks at nonproduction bases• Promoted activities to familiarize the Sixth
Environmental Action Plan among
consolidated subsidiaries in and outside Japan• Enforce strategic environmental management that
integrates environmental activities and businessactivities
Enhance education and enlightenment
activities• Extend the scope of Toyota Industries’
enlightenment activities to consolidated
subsidiaries in and outside Japan• Give back to society the outcomes ofenlightenment activities• Posted environmental panels at Toyota
Industries Group companies• Conducted environmental awareness survey
among employees

Promote environmental activities incollaboration with business partners• Ensure compliance with laws and regulations andimprove environmental performance based on theEnvironmentally Preferable Purchasing Guidelines• Revised the Environmentally Preferable
Purchasing Guidelines• Pursue higher brand image through proactive
information disclosure• CDP*4 climate change: ranked B (on aperformance band of A to F)• CDP water: ranked C (on a performance bandof A to F)• Nikkei’s Environmental Management Survey:
ranked 36th (out of 1,733 target companies)

Improve eco-conscious brand image
Reducing
Environmental Risk
and Establishing aSociety in Harmony
with NatureSpecific Actions

Sixth Environmental Action Plan

Establishing a
Reduce CO2 emissions throughLow-Carbon
product and technology development
Emission Society• Developed electric towing tractor• Developed next-generation electriccompressor• Developed plastic glazing rear window• Developed air-jet loom
• Developed next-generation air compressor forfuel cell vehicles

Environmental Initiatives

and are promoting activities according to the plan. Throughactivities undertaken during fiscal 2017, we made steadyprogress toward achieving respective targets for fiscal 2021.

FY2017 Achievements• Develop technologies that contribute to an evengreater level of energy efficiency• Develop products and technologies that respondto electrification• Develop technologies to enable weight reduction• Reduce energy loss
• Develop technologies for the realization of ahydrogen-based society

nn Progress of Sixth Environmental
Action Plan
With an eye to realizing a prosperous life in harmony with
the natural environment through the establishment of asustainable society, we formulated the Sixth Environmental
Action Plan for the period from fiscal 2017 to fiscal 2021

Specific Actions*1: We manage emissions in each business by using either unit of production or unit of sales as a basic unit of emissions. The weighted average of reduction rates of all businesses is used as
our management index.
*2: Volatile Organic Compounds*3: Substances of Very High Concern*4: An international NGO undertaking a project through collaboration among institutional investors to call for disclosure of strategies against climate change issues and greenhouse gas
emissions data to leading companies around the world† Details of the Sixth Environmental Action Plan are available at:https://www.toyota-industries.com/csr/environment/management/plan_6/index.html

63

Establishing a Low-Carbon Emission Society
We position the curbing of global warming as our most
crucial environmental task. We have been working to reduce
CO2 emissions in our global business activities and at thesame time accelerate our efforts to develop moreenvironment-friendly products.

CO2 Emissions (Production Activities)
FY2017 Results
Total emissions (non-consolidated)
10% reduction% reduction (vs FY06 level)(vs FY06 level)

Emission volume per unit of production (global)

22

FY21 target:

26% reduction% reduction (vs FY06 level)(vs FY06 level)

Under the Sixth Plan, we are working toward achieving
fiscal 2021 targets of reducing total non-consolidated
CO2 emissions from production activities by 10%
and global emission volume per unit of production by
26%, both from the fiscal 2006 level. In fiscal 2017, we
attained the specified targets by continuing to undertake
Company-wide activities to reduce the amount of air
used in production activities and encouraging energy justin-time (JIT) efforts in production processes. In addition,
we established the Plant CO2 Zero Emissions Challenge
Subcommittee and embarked on a discussion as to how
we should contribute to the realization of a zero CO2emissions society.

n Blowing Air Intermittently at a Washer
Continuous air blow

Before improvement

A production process of foundry parts uses a die castand a casting sand core to be fitted inside the die cast.
To mold the core, the die cast has to be preheated to andmaintained at an appropriate temperature.
In the conventional process, the preheating of the next
die cast had been initiated immediately after the start ofproduction of a preceding foundry part, which means aconsiderable amount of energy had been consumed tomaintain its temperature before actual use.
In countering the situation, we first surveyed thetime required to preheat each die cast in order to allow
management of an overall preheating schedule. Then, we
started adjusting the preheating timing of each die castaccording to a daily production plan and successfully reduced
the extra time required to keep the preheated temperature. As
a result, we achieved some 97% reduction in the amount ofenergy used for temperature maintenance, and consequently,
reduced annual CO2 emissions by about 96 tons.
This project won an Excellent Practice Award in fiscal
2017 under our internal award program to recognize
excellent environmental improvement activities as an
outstanding day-to-day improvement example for theenergy JIT efforts currently promoted by Toyota Industries.
n Reducing Time to Maintain Preheated Temperature of a Die Cast
Before improvement

Air pipingnC
 O2 Emissions (Non-consolidated/Consolidated subsidiaries
in and outside Japan)
Consolidated subsidiaries outside Japan
Consolidated subsidiaries in Japan
Non-consolidated
Reduction rate (non-consolidated)
Reduction rate (consolidated)
Reduction rate

Toyota Industries has been proactively promoting
development and design of eco-conscious products. As
part of the efforts, we launched the Environmentally Friendly
Product Certification System in fiscal 2007, which certifies
products that possess exceptionally high environmental
performance, and have been showcasing these products tothe public. With the addition of one product in fiscal 2017,a total of 20 products have obtained certification under thissystem since its launch.
We will continue to promote the development of
eco-conscious products in the future as well.
Product Certified in Fiscal 2017
gene B (8FB10 – 8FB30 and 8FBJ35) electric lift truck
with 1.0- to 3.5-ton capacity

Key features to reduce environmental
impact
The lift truck is equipped with a new AC motor andmotor driver and features an improved rate of recovering
energy generated when the brake is applied, whichlead to a significant reduction in power consumption
compared with our previous models.

Part
Compressed air(Uses a LARGE amount)

Die cast 1

Mold a core

Replace

In preparation

Intermittent air blow

Die cast 2

After improvement

Die cast

Power Consumption

12% lower
Approx.17% lower

Approx.

Start preheating

Die cast

Mold a core

Device to blow
air intermittently

Initiatives for Establishment of a Low-Carbon
Emission Society

nn Certification of Environmentally
Friendly Products

Establishing a Low-Carbon Emission Society

20

FY21 target:

In its ongoing effort to reduce the amount of compressed
air used in production activities, Toyota Industries worked
to reduce the amount of air used by a washer in an engine
processing line in fiscal 2017.
Conventionally, water droplets left on a part after washing
had been removed by continuously blowing air. This caused
a drop in air pressure, which in turn required a large amountof air to compensate for the pressure drop.
To solve the problem, we installed a device that
automatically blows air intermittently and succeeded insaving energy while keeping the air pressure at a sufficientlevel. The results were reductions in the amount of air usedby about 25% and in annual CO2 emissions by around fourtons.
The same washer is used in a number of otherproduction lines within Toyota Industries. As the applicationof a similar device Company-wide can offer profoundenergy-saving effects, the project won a Best PracticeAward in fiscal 2017 under our internal award program torecognize excellent environmental improvement activities.

nn Reducing CO2 Emissions by
Reducing the Time to Maintain
Preheated Temperature of a Die Cast

Environmental Initiatives

Summarynn Saving Energy by Adding a Device ata Washer to Blow Air Intermittently

power consumption(1.0- to 2.5-ton capacity)

power consumption(3.0- to 3.5-ton capacity)(Compared with previous models)Part

PreheatCompressed air(Uses a SMALL amount)

Maintain hightemperature level

Waste

1.0
1.00
1.00

0.81
0.80

0.78

0.77

0.76

0.76

0.78

0.78

0.72

0.73

Total
emissions
(kt)

888

926

909

940

785

800
667
600
400
200
0

(FY) 06

64

0.6
Good

1,000

Good

After improvement

0.8

Toyota Industries Report 2017

13

14

15

16

17

Munenori Sato (left)
Takato Morishita
Planning Group No. 2,
Planning Office, Plant
Engineering & Environment
Department, Head Office(As of December 31, 2016)

Through collaboration with related departments, weachieved an improvement that ensures quality andsaves energy. We plan to spread the information
about this improvement so that it will be adopted inmany more equipment.

Die cast 1

Mold a core

ReplaceStart preheating
In preparation
Die cast 2

Die cast

Mold a core

Developa schedule
Preheat

Maintain hightemperature
level

65

Establishing a Recycling-Based SocietyWith a view to establishing a recycling-based society,
we have been striving to reduce resource consumption.

Summary

FY2017 Results
Waste generation volume per unit of production(non-consolidated)30

FY21 target:% reduction (vs FY06 level)

29% reduction(vs FY06 level)29

FY21 target:% reduction (vs FY06 level)

27% reduction(vs FY06 level)

In seeking to minimize resource consumption in 2050,
we are making efforts to reduce our waste generation
volume by implementing measures to reduce resource
consumption at the source and promoting internal reuseof waste.
In the Sixth Plan, we set out targets of reducing waste
generation volume per unit of production compared withthe fiscal 2006 level by 29% on a non-consolidated basis
and by 27% for Toyota Industries and its consolidated
subsidiaries in Japan. Accordingly, we have beenpromoting activities toward these targets.

n Efforts to Extend the Life of Cutting Tools
Without cooling

Cutting tool edge
(where temperature becomes high)ExhaustAir
supplyWorkpiece
Air motorn Waste Generation(Non-consolidated/Consolidated subsidiaries in Japan)
Consolidated subsidiaries in Japan

Reduction rate (non-consolidated)

1.00
1.00
0.70

Total
generation
(kt)

100

81

High
temperature

Reduction rate

Reduction rate (Non-consolidated/consolidated subsidiaries in Japan)

0.71

0.73
0.71

Exhaust

1.00
0.80

Air
supply0(FY)

Prototype Production
Section, Manufacturing
Department No. 1, Hekinan
Plant(As of December 31, 2016)

nn Recovering Used Cutting Fluid with
Improved Discharge Plate
The Kariya Plant, a production base of textile machinery in
Aichi Prefecture, created a discharge plate to better recoverused cutting fluid generated in a cutting process of foundryparts and to reuse the recovered fluid.
The plant had already been recycling used cutting fluid
but had discarded the fluid containing metal chips. In orderto more finely remove metal chips from used fluid, the plant
worked to modify the discharge plate, on which used fluid
containing metal chips flow down.
The improvement involved placing magnets on the backof the plate to slow down metal chips while allowing used
cutting fluid to slide down the plate. After a number of trials
and errors, appropriate magnetic power and optimum
locations of magnets were determined.
The improved discharge plate has allowed the plant
to reuse 20 tons of used cutting fluid annually. It has been
adopted by other Toyota Industries plants in their cutting
machines, and they have added their own improvements,
such as changing the shape of the discharge plate, forbetter results. The project won a prize in the Creativity
category in the Fiscal 2017 Commendation for Science andTechnology by the Minister of Education, Culture, Sports,
Science and Technology.

Lowtemperature

2006

2017

2021

High
temperature
ExhaustAir
supplyAir motor

Lowtemperature
Improved discharge plate

Discharge plate

Metal chips

Magnet to slow down
metal chips
Cutting fluid

The Prototype Production Section makes resourcefulefforts and improvements in order to provide better
technologies for use in production lines. We willcontinue to contribute to production activities while
promoting communication within our section andwith other relevant departments.

Cool air generator

The Hekinan Plant, an engine production base in Aichi
Prefecture, has been conducting improvement activities toachieve a longer life for cutting tools used in production lines.
Their latest effort was to extend the tools’ life by lowering
the high temperature generated at the edge of a rapidly
Toyota Industries Report 2017(team leader)

Cooling by using cool air of a cool air generator

65

nn Extending the Life of Cutting Tools

66

Air motor

0.60 Good

50
Good

Low
temperature

Cooling by using the air motor’s exhaust only

Initiatives for Establishing a Recycling-BasedSocietyNon-consolidated

High
temperaturenM echanism of the Improved Discharge Plate

Cutting fluid tankContainer to collectmetal chips

FilterBack to the cutting machine

Shinya Kakehi
Manufacturing Planning,
Manufacturing Section,
Production Department(As of December 31, 2016)

Establishing a Recycling-Based Society

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

Akio Nakamura (left)
Taishi Matsuda

Environmental Initiatives

Waste Generation Volume (Production Activities)

rotating tool with the contact with a workpiece.
Previously, the plant’s production lines adopted a dry
cutting technique that does not use a cutting fluid. This
caused cutting tools to turn hot easily and reach their life
early. In this dry cutting technique, the plant endeavored toachieve the level of cooling performance equivalent to thatattained with the use of a cutting fluid. They consideredseveral cooling methods, including the one to utilize exhaustof an air motor used to rotate a tool, collaborated with
relevant departments to accumulate necessary data andfound out that a commercially available cool air generator
that can take in air and discharge cool and warm air
separately is fit for the purpose. Installing the generator
enables the cooling of cutting tools via the air motor’s coolexhaust and made it possible to achieve our original target.
Cutting tools now last about 1.8 times longer than before.
This improvement has already been applied to otherToyota Industries plants, and the generator has been proveneffective both in terms of cooling (using its cool air) andwarming (using its warm air). We will continue our activities
to generate excellent ideas under the motto “Continue
improvements, however small.”An improvement of the used cutting fluid recovery
process had already been done before, but it did not
become widespread due to a workability problem.
So, it was the second trial. We are very satisfied with
the improvement we came up with this time because
it works great without imposing an extra burden on
workers. We will continue our improvement activities
while gathering seeds of improvements on-site.

nn Conducting Water Risk Assessment
Toyota Industries uses water in many processes, forexample, for washing products and cooling production lines.
Globally, consumption of water, which is one of the mostimportant resources, is increasing in line with growth in theworld’s population. Flooding and other water-related natural
disasters due to climate change cause serious impact.
We duly consider that these factors present risks to ourbusiness activities.
In fiscal 2017, we assessed water risks at each baseas part of efforts to identify and mitigate risks associatedwith water resources to our business activities. We used
Aqueduct, a global water risk mapping tool developedby the World Resources Institute (WRI), and various
public databases available in corresponding regions. The
assessment revealed no “extremely high” water risks forany of our bases. Based on the assessment results, we will
implement appropriate measures in our bases, starting withthose found to have higher risks. Simultaneously, we will
work to assess and mitigate water risks in our supply chain
as well while seeking ways to conserve water resources.

67

Reducing Environmental Risk and Establishing a Society inHarmony with Naturesystem to manage chemical substances.

Summary
VOC Emissions (Production Activities)
FY2017 Results
Emissions per unit of production(non-consolidated/automobile body)% reduction (vs FY06 level)(vs FY06 level)

Under the Sixth Plan, we set a target of reducing
emission volume per unit of production for volatile organic
compounds (VOC) from the automobile body painting
process by 36% from the fiscal 2006 level and have been
striving to reduce VOC emissions. In fiscal 2017, we
continued our efforts to increase the recovery rate andenhance maintenance and management of thinner,a solvent used for cleaning. Consequently, we were able
to cut down emission volume per unit of production in
fiscal 2017 by 36%.

nn Strengthening Management ofChemical Substances at Consolidated
Subsidiaries Outside Japan
Many of the chemical substances needed for our production
activities may cause adverse effects on the environment.
Thus, appropriate management of chemical substances is
crucial in ensuring safe handling and minimizing potential
harmful effects.
To appropriately manage chemical substances containedin raw materials and products, we have been assisting ourconsolidated subsidiaries outside Japan in establishing ann Initiatives for Conservation of
Biodiversity
We believe that it is important to undertake businessactivities while continuously paying attention to the impactof these activities on the natural environment. Based on
this belief, we have formulated the biodiversity policy andbeen promoting initiatives accordingly. The policy clearlystipulates that we seek to reduce the impact of our businessactivities on biodiversity and work with local communities forconservation of biodiversity.

nn Participation in the Aichi Prefectural
Government Ecological Network
Forum
Toyota Industries has been collaborating with the Aichi
prefectural government in its initiative to foster thedevelopment of ecological networks for the realizationof biodiversity-conscious local communities. In January
2017, we participated in the Aichi Prefectural Government
Ecological Network Forum through a poster exhibition.
The exhibition showcased our Biotope at the East of Obu
Station, which we have developed on Company-owned
idle land in Obu City, Aichi Prefecture, in collaboration
with diverse organizations and individuals, including theprefectural government, companies, NPOs, expert bodies
and local community members, with the aim of forming
a link to the local natural environment. We will continue
to cooperate with other organizations and contribute to
the development of ecological networks within the entire
prefecture.

various activities, including development of a wooded
area within the plant premises and conservation of natural
habitats of living organisms, and aims to extend its reachfrom Toyota Group companies to local communities andgovernments.
Our activities under the project in fiscal 2017 included
participation in the Fujimae Tideland Cleanup Campaign,
which was an All Toyota event; publication of a booklet thatcompiles initiatives of each company in the Toyota Group;and hosting study group sessions for development of aquantitative environmental assessment method. We plan toexpand the project throughout the Toyota Industries Groupto form a broader circle of collaboration.

pond and looking up their names in picture books, anddrawing pictures of these organisms.
We will continue to develop our biotope in the hope ofcontributing to conservation of the local ecosystem.

nn Conducting WET*1 Testing
For effluents released from its production bases, Toyota
Industries sets and endeavors to comply with voluntarystandard values, which are more stringent than those
stipulated under law.
In fiscal 2017, in addition to complying with thesevoluntary standard values, we conducted WET testingat two production bases in Japan to evaluate theenvironmental impact of their effluents on organisms.
*1: Short for Whole Effluent Toxicity, a WET test is used to assess the aggregate toxic
effect of a facility’s wastewater by using bioresponse of algae, crustacea and fish.

Logo used in Green Wave Project activities

nn Environmental Learning Using Our
Biotope
In August 2016, we invited local children to our Biotope atthe East of Obu Station and held a nature observation event
to explore aquatic organisms.
On the day of the event, the children closely interactedwith nature, learning about non-native species as well as
about the biotope itself, catching organisms living in the

Water sampling for WET testingnn Revisions to the Environmentally
Preferable Purchasing Guidelines
Toyota Industries defined its aspirations in 2050*2 in its
environmental vision in March 2016, and accordingly, revised
the Environmentally Preferable Purchasing Guidelines in
October 2016.

Reducing Environmental Risk and Establishing a Society in Harmony with Nature36

FY21 target:

36% reduction

In fiscal 2017, we started providing such support to threecompanies.
We will continue to provide support and undertake
activities to prevent violations of chemical substances
regulations at production bases outside Japan.

Environmental Initiatives

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

Key Revisions

Children drawing organisms caught in the pond

Environmentally conscious practices throughout the
product lifecycle, from the purchase of raw materials to
end use by customers and disposal
Strengthening environmental management of the entire
supply chain, including secondary and tertiary business
partners
Augmenting initiatives in such areas as greenhouse gas(GHG) emissions, resource recycling and biodiversity

Poster exhibition

We will continue to collaborate with our business
partners toward the implementation of appropriate
environmental management within the entire supply chain.

nn All Toyota Biodiversity Conservation
Activities*2: Our aspirations in 2050 represent our goals under the four action themes (establishinga low-carbon emission society; establishing a recycling-based society; reducing
environmental risk and establishing a society in harmony with nature; and promoting
environmental management) as declared in our Global Environmental Commitment.

Toyota Industries has been taking part in the Green Wave
Project, a biodiversity conservation initiative undertaken
jointly by Toyota Group companies. The project conducts
Study group session at a production base in India

68

Toyota Industries Report 2017

Participants of the nature observation event

69

Environmental Management
nn Conducting Environmental Risk
Diagnosis at Non-Production Sites

Toyota Industries proactively discloses its initiatives for
reduction of environmental risk and other environmental
information.

nn Measures to Prevent Irregular
Effluent Discharges from a Rainwater
Drainage System
In order to prevent water contamination by irregular effluent
discharges, we have been implementing a measure to
avoid external leakage from rainwater discharge outlets
throughout Toyota Industries since fiscal 2012.
More specifically, we have been installing a system toconstantly monitor rainwater quality at rainwater discharge
outlets, and if there is a problem in the quality, to stop therelease of rainwater into public areas at a water gate or
reroute it back to a wastewater treatment facility.
In fiscal 2017, we installed water quality monitoring
equipment and a water gate at the rainwater discharge
outlet of the Higashiura Plant in Aichi Prefecture, thereby
completing the implementation of the measure against
the risk of undesirable external leakage of rainwater in all
production bases in Japan.

■ Oil and chemical tank
Leakage■ Water purifier tank
Odor

Discharge

Legally required
inspection

nn Running an Environmental Booth at
the Shokki Festa

Diagnosis
results(sample)Inspection

Routineinspection

nn Adding More Monitoring Tanks to
Wastewater Treatment Facilities to
Reduce Risk of Irregular Effluent
Discharges
From fiscal 2015 to fiscal 2017, we undertook the taskof reducing the risk of irregular effluent discharges at
the Kyowa Plant in Aichi Prefecture. Our specific efforts
were: 1) implementing the aforementioned measure at the
rainwater discharge outlets to prevent external leakage;and 2) separating drainage systems for wastewater fromproduction processes, non-industrial wastewater andrainwater to apply appropriate treatment depending on
respective water qualities.
In fiscal 2017, we added two more monitoring tanks to
the wastewater treatment facility of the plant. We now havethree separate monitoring tanks, one each for the reception
phase, monitoring phase and discharge phase, whichallow us to reliably stop external leakage of irregular effluent
discharges into public areas when the water quality is foundunfit for release.
These measures have led to not only lower risk ofirregular effluent discharges from our plants but also better
energy and resource savings through less burden on thewastewater treatment facility.

Environmental seminar

We run an environmental booth at the Shokki Festa, anannual event jointly held by Toyota Industries and its labor
union.
In fiscal 2017, under the theme of “people and nature inharmony” we hosted various environment-related events atthe booth. They included handing out flower seedlings andcompost made from branches from pruned trees on the
Company premises and fallen leaves, creating eco-friendly
shopping bags and holding a quiz rally on nature andorganisms.
Attended by many visitors, including employees andtheir families as well as local community members, thebooth provided an opportunity for them to think and get toknow more about biodiversity in a fun way while drawing
their favorite animals and flowers on eco-friendly shoppingbags and answering quizzes on the blessings of nature.

Environmental Management

Measurement results are available at:https://www.toyota-industries.com/csr/environment/

Water gate

Oil and chemical tanks, storage warehouses,
Facilities andwaste storage yards, kitchens,equipment
car wash stations, piping, manholes,
subject towater purifier tanks, power generators, boilers,
assessment
small compressors and air conditioners

Environmental Initiatives

Toyota Industries has been striving to reduce environmental
risks not just in production bases but also in Company
housing and dormitories, Company-owned welfare facilities
and other non-production sites.
In fiscal 2017, we conducted a genchi genbutsu (go andsee for yourself) environmental risk diagnosis at 23 suchsites in Japan. Specifically, we performed a quantitative
assessment by checking equipment installation measures atfacilities, the boundary and the discharge outlets within eachsite and by examining their operational status.
We will continue to prioritize necessary countermeasures
based on the assessment results and formulate a mediumterm action plan.

nn Status of Compliance withEnvironmental Laws
Toyota Industries carries out soil and groundwater surveys
at its plants and performs purification when the survey
results reveal that soil or groundwater contains substances
exceeding standard values. We also disclose the progressof purification efforts in the corresponding Toyota Industries
Report and at local community meetings.
In a voluntary soil and groundwater survey conducted at
the Kariya Plant in Aichi Prefecture, we have confirmed thatcertain substances were above their standard values. We
reported the incident to the Aichi prefectural government
on June 1, 2016 and disclosed the relevant information to
the public.
In accordance with the results of the survey, we are
implementing purification measures under the guidance ofAichi Prefecture while placing the highest priority on not tocause any inconvenience to local residents.
In fiscal 2017, there were no incidents of violations ofenvironmental laws.

lecture to deepen their understanding of the possibility ofhydrogen as a driver of a sustainable society.

On-site risk diagnosis

nn Holding Environmental Seminars
We hold environmental seminars to raise employees’
environmental awareness. In fiscal 2017, we selected“taking on the challenge of establishing a zero CO2emissions society” as the lecture’s main theme and invited
Mr. Kou Sakata of the Institute of Applied Energy to talkabout “a scenario for spreading the use of CO2-freehydrogen.” From Toyota Industries and its consolidated
subsidiaries, 182 employees and executives attended theEnvironmental booth

Water quality monitoring equipment

70

Toyota Industries Report 201771nn GHG Emissions in the Supply Chain

Activity Examples of Consolidated Subsidiaries (Outside Japan)

Our subsidiaries engaging in production or sales andservicing of materials handling equipment in Europe havebeen promoting the use of renewable energy, such as solar,
wind and hydraulic power, as part of their efforts to reduce
CO2 emissions.
Two of our sales and servicing subsidiaries, namely,
Toyota Material Handling Deutschland GmbH (TMHDE)in Germany and Toyota Material Handling Nederland B.V.
(TMHNL) in the Netherlands, have installed a rooftop solar
panel system that respectively generates 28% and 5% of
their annual electricity consumption.
Moreover, Toyota Material Handling Manufacturing
Sweden AB (TMHMS) and Toyota Material Handling
Manufacturing Italy S.p.A. (TMHMI), production subsidiaries
in Sweden and Italy, respectively, and TMHNL havepurchased renewable electricity certificates, which as a totalof the three companies are equivalent to approximately
28,005 MWh of annual electricity consumption and about
2,927 tons of CO2 emissions. Through the purchase of
these certificates, the three companies have contributed tolower CO2 emissions.

Our consolidated subsidiaries outside Japan have beenpromoting reduction of CO2 emissions by proactively
switching to LED lighting. For example, Yantai Shougang
TD Automotive Compressor Co., Ltd. (YST), a subsidiary
producing car air-conditioning compressors in China, has
replaced all plant and office lights with LED lighting.
Elsewhere, Toyota Industry (Kunshan) Co., Ltd. (TIK),
a subsidiary producing automotive parts and materials
handling equipment in China, has switched 90% of its lights
to LED lighting. At Toyota Industrial Equipment Mfg., Inc.
(TIEM), a subsidiary producing materials handling equipmentin North America, 85% and 50% of lights in its plant area
and office area, respectively, are now using LED lighting.
TIEM plans to complete the replacement in its plant area infiscal 2018.

Scope 1
(0.6%)

Scope 3 /Other
(0.7%)

Scope 2
(1.6%)
Scope 3 /Category 1(5.0%)

nn Recycling All Wastewater
In India, Toyota Industries Engine India Pvt. Ltd. (TIEI),a subsidiary producing automotive parts, and Kirloskar
Toyota Textile Machinery Pvt. Ltd. (KTTM), a subsidiary
producing textile machinery, have been recycling andeffectively utilizing all wastewater.
For example, the two companies apply purifying
treatment to wastewater from production processes, suchas liquid waste of coolants and used cooling water, andreuse it in production processes. Non-industrial wastewateris also treated in-house and used to water trees and flush
toilets.

nn Local Community Event Held during
Environment Month

Renewable electricity certificate and TMHMS staffn GHG Emissions in Supply Chain (FY2017)

During Environment Month held in every June, YST hosts anenvironmental event for local community members.
In the fiscal 2017 event, YST exhibited posters andmaterials to highlight the importance of activities for savingenergy and curbing global warming. YST also handed out
original paper fans to visitors to increase their energy-saving
awareness.

Scope 3 / Category 11(92.1%)

Direct emissions from Toyota Industries through the
Scope 1
use of fossil fuels, etc.
Emissions from Toyota
Industries’ businessIndirect emissions from the use of purchased energy
activities
Scope 2 resulting from generation of electricity by power
plants, etc.
Emissions other thanEmissions associated with purchase of raw materials,
from Toyota Industries’ Scope 3 end use of Toyota Industries’ products by customers
business activities
and disposal of products

Detailed data is available at:https://www.toyota-industries.com/csr/environment/
process/scope3/index.html

nn Proactive Disclosure ofEnvironmental Information
Toyota Industries
fosters environmental
communication with
our stakeholders
through proactive
disclosure ofenvironmental
information. In fiscal 2017, Toyota Industries was evaluatedto be in the performance band of B in the CDP* climatechange survey.
Since fiscal 2015, we have been participating in the
Ministry of the Environment’s project for the establishmentof a framework for disclosure of environmental informationand examining the ideal way to disclose our environmental
information. We will continue to upgrade our method of
disclosure and contents to be disclosed.

Environmental Management

nn Reducing CO2 Emissions by
Switching to LED Lighting

Scope 3 emissions reaching 97.8%. The largest source ofemissions, which accounted for 92.1%, was Category 11(Use of sold products) under Scope 3, followed by Category
1 (Purchased goods and services) also under Scope 3,
which accounted for 5.0%.
Going forward, we will continue to monitor GHG
emissions within the entire supply chain and accordingly
promote CO2 emissions reduction activities.

Environmental Initiatives

nn Reducing CO2 Emissions by Using
Renewable Electricity

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 the fiscal 2017 results, combined Scope 1 and 2
emissions accounted for 2.2% of the total emissions, with

* An international NGO undertaking a project through collaboration among institutional
investors to call for disclosure of strategies against climate change issues and GHG
emissions data to leading companies around the worldnS
 cope 3 Emissions by Category (FY2017)
Purchased goods and services
Capital goods
Fuel- and energy-related activities not included in Scope 1 or 2
Upstream transportation and distribution
Waste generated in operations
1

Business travel
Employee commuting

Included in Scopes 1 and 2

Upstream leased assets

Included in “Upstream transportation and distribution”

Downstream transportation and distribution

Not applicable

Processing of sold products
Use of sold products
End-of-life treatment of sold products

Environmental event

Downstream leased assets

Not applicableFranchises

Not applicable

Investments

Not applicable
1

10

100

1,000

10,000100,000

Calculated by using the emissions associated with employee business travel as the baseline set at 1
Renewable electricity certificate and TMHMI staff

72

Toyota Industries Report 201773

Environmental Impact Flow and Environmental Accounting

Third Party Assurance of Environmental Performance Data

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).

In order to ensure the transparency and accuracy of theinformation we disclose, the Toyota Industries Groupobtained third party assurance for its GHG emissions(Scopes 1, 2 and 3) and waste generation volume data forfiscal 2017.

Environmental
Impact Flow

■ Energy [consolidated]
Energy consumption■ Into the Air [consolidated]
CO2 emissions

16,520 TJ*1

City gas

76,229 km3N

LPG

9,709 tPetroleum products

5,399 kl

Coal products

6,675 t

LNG

5,503 tR&D/Design

Procurement

Production*1: Terajoule is a unit used to measure heat. 1 TJ = 1012 joules■ Raw Materials [consolidated]

Greenhouse gases other than CO2

5,391 t-CO2

CO2 from logistics

27,180 t-CO2

SOx (Sulfur oxides)

412 kgNOx (Nitrogen oxides)

137 t

VOC (Volatile organic compounds)

571 t■ Waste [consolidated]
87,917 t

Waste generation■ Water [consolidated]
Water consumption

Usage

4,661 km3

■ Into Waterways[Japan consolidated]■ Chemical Substances

33 t

Water pollutants[Japan consolidated]
PRTR law*2 designatedsubstances

1,460 t■ Chemical Substances[Japan consolidated]
Emissions/transfers of PRTR
law designated substances

Transportation/Sales
712,293 t

Raw material consumption

939,753 t-CO2

Recovery/Recycling

1,579 tDischarge of treated wastewater

2,370 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.

nn Environmental Accounting
Fiscal 2017 Environmental Accounting*3
Scope of data collection: Toyota Industries Corporation
Period of data collection: April 1, 2016 – March 31, 2017
*3: Environmental accounting data is collected in compliance with the Ministry of theEnvironment’s Environmental Accounting Guidelines 2005 Edition.

n Environmental Conservation Cost
Category
Pollution prevention costs
Business Global environmental
area costs conservation costs
Resource recycling costs

FY2017

Environmental Impact

833

120

525

147

450

2,335

716

3,156

129

140

113

193

Upstream/downstream costs

0

568

0

71

0

276

6

166

Research and development costs

7

2,398

6

309

Social contribution activity costs

0

92

0

89

Environmental remediation costs

16

0

50

0

1,435

5,929

1,416

4,131

Toyota Industries Report 2017

7,364

n Environmental Conservation Beneﬁts

FY2016

Investment Expenses Investment Expenses

Management costs

Total

74

(Millions of yen)

5,547

Comparison with Previous Fiscal Year
1,414 t decrease

CO2
Generation of waste products

469 t decreasen Economic Beneﬁts of Environmental Conservation Initiatives(Millions of yen)

Revenue

Details

AmountReturns from sale of recycled waste products

3,299

Energy cost reductions
Cost reduction Cost reduction by resource savings(including reductions in amount of water use
and wastewater treatment costs)
Total

Toyota Industries obtained third party verification of its GHG
emissions and waste generation volume data for fiscal 2017.
On-site verification was performed by the verification
organization at two of our production bases in Aichi
Prefecture, namely, the Higashichita Plant and Nagakusa
Plant, and the transparency and accuracy of ourenvironmental data have been confirmed through theverification.
The organization is also sequentially conducting
verification at the remaining eight production bases ofToyota Industries as well as 12 consolidated subsidiaries inJapan and 15 consolidated subsidiaries outside Japan.

We will continue to utilize this third party verificationin making continuous improvements in our environmental
activities and disclose data to our stakeholders in a moretransparent manner.

On-site verification conducted at the Higashichita Plant and Nagakusa Plant

23,317 m3 increase

Water

Item

The verification statement of the third party organization is available at:https://www.toyota-shokki.co.jp/csr/environment/process/items/Verification_ENG.pdf

129
87
3,515

n Bases Subject to Verification
Category

RegionToyotaIndustries
Corporation

Names of Bases and Subsidiaries

Japan

Kariya Plant, Takahama Plant, Nagakusa Plant, Kyowa Plant, Obu Plant, Hekinan Plant, Higashichita Plant, Higashiura Plant, Anjo Plant,
Morioka Works (10 bases)

Consolidated
subsidiaries in
Japan

Japan

Tokaiseiki, Tokyu, Altex, Iwama Loom Works, IZUMI MACHINE MFG., Miduho Industry, Nagao Kogyo, Nishina Industrial, HANDA Casting,
Unica, Hara, Aichi (12 companies)

Consolidated
subsidiaries
outside Japan

North
America,
Asia andEurope

NVIC, Raymond, TIEM, MACI, TACG, TICA, TIK, TIEI, KTTM, TACK ,YST, TDDK, TMHMF, TMHMS, TMHMI (15 companies)

Environmental Impact Flow and Environmental Accounting / Third Party Assurance of Environmental Performance Data

1,242,408 MWh

OUTPUTINPUTElectricity

Environmental Initiatives

nn Verification by a Third Party

nn Environmental Impact Flow75