Environmental Initiatives
32
33
34
36
38
40
41
42
44
45
46
47
48

Global Environmental Commitment
Environmental Management
Business Activities and Their Environmental Impact
Targets and Results of the Fourth Environmental Action Plan
Curbing Global Warming from Products
In-Product Features for Resource Saving
Reduction of Product-Derived Environmental Risks
Prevention of Global Warming Factors in Production
Resource Utilization in Production
Reduction of Environmental Risks in Production
Environmental Communication
Environmental Accounting
Independent Verification

Toyota Industries Report 200831

Environmental Initiatives

Global Environmental Commitment
The Toyota Industries Group will contribute to thecompatibility of environmental conservation and economic
growth throughout its wide range of business activities,
including automobile, materials handling equipment,
logistics and electronics.

Address environmental concerns by working in harmony
with both regional communities and global society.

Harmony

Sustainable
Management

Basic Policy•The Toyota Industries Group will continue to set
challenging targets aimed at further reducing theenvironmental impact of its business activities, listening
carefully to voices of its stakeholders such as customers,
and acting in compliance with the letter and spirit of laws
and regulations.
•The Toyota Industries Group will continuously improve
its environmental management, placing environmental
activities among its highest priorities. In particular, theCompany will give priority to the following items.
Curb global warming
Aiming to reduce energy consumption and the output ofgreenhouse gases through the entire lifecycle of its products,
services and production activities
Use resources more efficiently
Utilizing raw materials, water and other resources efficiently whileworking to reduce, reuse and recycle waste products

Enhancement

Enhance the eco-efficiency of
all our business activities,
products and services.

Responsibility

Fulfill our social responsibility
to participate inenvironmental conservation.

•The Toyota Industries Group will aim to foster greatercommunication and teamwork within a wide rangeof partnerships, including those with customers andsuppliers, in order to promote sustainable managementof the environment. In addition, the Toyota Industries
Group will act as an upstanding corporate citizen, taking
an active part in the planning of activities that contributeto various regional communities as well as to our global
society.
July 2005

Tetsuro Toyoda

Reduce environmental risk factors
Reducing the use and output of substances of concern while
evaluating environmental risk factors at the planning stage ofbusiness activity in order to prevent pollution

President

Scope of Group-Wide Environmental Management

EuropeManufacturing
company:
Sales company:
Others:Total:

4
3
2
9

Asia
Manufacturing
company:
Sales company:
Others:Total:

4
1
1
6

Japan
Toyota Industries: 10 plants
Manufacturing
company:
16
Sales company: 41
Others:22
Total:
79

Australia
Sales company:

32

Toyota Industries Report 2008

North America
Manufacturing
company:
9
Sales company: 3
Others:2
Total:
14

Latin America
Sales company:
11Environmental Initiatives

Environmental Management
education programs after clarifying the capabilities required
for the integration of a Company-wide EMS and reviewing
targeted persons and educational objectives. Based on the latest
environmental trends and effectiveness of education, we intend
to continuously review these programs to nurture personnel wellversed in environmental affairs.

Environmental Education Program

Chiefexperts
Seniorexperts
Experts
Generalemployees

Environmental audit overview
Environmental management overview

Supervisor training(technical)

Supervisor training(clerical andengineering)

Newly appointed senior staff training

Mid-career employee training

Newly appointed managerial staff training
Managerial
staff

Product environmental training

Toyota Industries uses an ISO 14001-based environmental
management system (EMS) as an effective tool in its efforts topromote environmental management and fulfill its corporate social
responsibility. EMS was previously operated independently at
respective plants. Aiming for greater environmental management,
however, in fiscal 2008 we newly established a Company-wide
EMS, with the president at the top. We will continue to work tostrengthen our environmental governance based on an environmental
management structure compatible with Toyota Industries’ business
management structure. We will also strive to reduce environmental
impacts that accompany our business activities in productdevelopment and manufacturing.
In fiscal 2008, Toyota Industries obtained EMS certifications forthe corporate center as well as the Textile Machinery and Compressor
divisions as a form of pre-integration of certification. In fiscal 2009,
we plan to acquire Company-wide integration of certification that
includes all business operations.

Mid-career employee training

Environmental Management System

Assistantmanagers

Heads

Generalemployees

New employee training (those in technical positions aswell as clerical and engineering positions)

Employees in technical positions

Managerial
staff

Employees in clerical and engineering positions

Environmental Education
Acting on its belief that manufacturing starts with nurturing
excellent personnel, Toyota Industries regards human resource
development as one of the most important management issues.
In the environmental area as well, we revised environmental

Environmental Management Structure
President

Environmental
Committee

Internal audit
Responsible internal
auditor(executive vice president)

Executive
vice
president•Team leader•Supervising auditors•Auditors
Specialized committees

Chief environmental
administrator(executive vice president)

Secretariat(Plant Engineering& Environment Dept.)

Head Office

Divisions

Corporate Planning

Materials Handling
Equipment

R&D

Logistics

Purchasing

Car Air-Conditioning
Compressor

Quality Control

VehicleHuman Resources
GeneralAdministration

Product Technology
Subcommittee
Production Environment
Subcommittee

Internal Environmental Audits
Previously, auditors assigned at respective Toyota Industries
plants undertook internal environmental audits. This prompted
external auditors to point out areas for improvement in terms of
the independence and quality of audits. Taking the opportunity of
the integration of a Company-wide EMS, a fundamental review ofthe structure and procedures of internal audits was conducted.
Specifically, we have established an internal audit structure in which
the executive vice president in charge of audits appoints a teamleader tasked with implementing audits. Under the team leader areauditors selected from each business division.
In fiscal 2008, internal auditors detected underlying, intrinsic
problems at respective organizations, and each organization
subsequently implemented corrective measures. With regard to
the external environmental audit conducted by an independentcertification agency for fiscal 2008, Toyota Industries wascommended for improving the level of its internal audits.

Internal Environmental Audit Structure
An internal environmental audit structure has been organized tostrengthen the checking function of Toyota Industries’ environmental
efforts, as indicated below.

Business
PromotionCouncilAudit organization

Roles/initiatives

Responsible
internal auditor(1 person)(executive vice president)•Devise internal audit plan
•Appoint team leader•Summarize audit results and report topresident

Team leader(1 person)•Responsible for implementing audits•Select supervising auditors and plan
audit schedules•Report results to responsible internal
auditor•Hold auditor meetings

EngineElectronics
Textile Machinery

Environmental conservation
organization by
manufacturing sites

Environmental Risk
Reduction
Subcommittees

Supervising auditors(20 people)(environmental risk management overseen
by plant managers)(respective plants)

Auditors•Implement audits•Confirm progress of corrective
measures•Report results to team leader

Toyota Industries Report 200833

Environmental Initiatives

Business Activities and Their Environmental Impact
As a manufacturer of a wide variety of products, including lift trucks,
car air-conditioning compressors, textile machinery and automobiles,
Toyota Industries strives to understand the environmental impactof our products across their entire lifecycle from parts procurement
through to production and disposal.
The most notable environmental impacts generated by Toyota
Industries’ operations include global warming caused by the use ofenergy in casting and coating processes and the use of greenhousegases; waste from manufacturing processes such as casting
and machining processes; the atmospheric impact of chemical
substances used in the painting of automobiles, lift trucks and car airconditioning compressors; and the impact of industrial wastewateron public waterways. Toyota Industries is systematically striving to
reduce these kinds of environmental impacts.

EnergyRaw Materials*2

Energy Consumption(TJ)

Raw Materials Consumption

Overseas subsidiaries
Subsidiaries in Japan
Non-consolidated*1

Overseas subsidiaries
Subsidiaries in Japan
Non-consolidated

(kt)

600

12,000
9,000

7,934

8,397

565
505

9,085 9,280

436
383
333

6,678

300

6,000
3,000
0
(FY) 04

06

05

07

0
(FY) 04

08*1: Terajoule is a unit used to measure heat.
1 TJ = 1012 joules

05

06

07

08

*2: Metals such as iron and aluminum,
as well as resins such as plastics

INPUT
Emissions and Environmental Impact ofEach Process (as of March 2008)

Plant

Product Development
Focus of Environmental Activities in
Product Development

Business
Materials Handling
Equipment

Develop clean energy vehicles
Improve fuel efficiency and achievecleaner exhaust emissions
Improve recyclability

Textile Machinery

Create designs with improved energy
efficiency

Car AirConditioning
Compressor

Reduce weight and improve efficiency
Reduce power consumption and utilize
new, environmentally friendly
refrigerants

VehicleMachining,cleaning

CO2 (global warming)
Waste

Coating

VOC*4, chemical substances (air pollution)
CO2 (global warming)

Machining,cleaning

CO2 (global warming)
Waste

Coating

VOC, chemical substances (air pollution)
CO2 (global warming)

Die-casting

CO2 (global warming)

Machining,cleaning

CO2 (global warming)

Coating

VOC (air pollution)

Use of CFC
substitutes

HFC*5 (global warming)

Coating

VOC, chemical substances (air pollution)
CO2 (global warming)

Machining,cleaning

CO2, HFC (global warming)
Water pollution, waste

HekinanHigashichita
Kyowa

Machining

CO2 (global warming)

Casting

CO2 (global warming)
SOx*6 (air pollution), waste products

Kyowa

Plating

Water pollution

Takahama

KariyaKariyaObu
Higashiura

Reduce weight and improve recyclability

Nagakusa

CommonthemesEngineImprove fuel and combustion efficiency
Reduce noise and vibration

Electronics

Contribute to the development of clean
energy vehicles

OUTPUT

Reduce the use of substances of concern
Promote green procurement

Into the Air
Greenhouse Gas Emissions
Non-consolidated(kt-CO2)

0.6t
236t

34

Toyota Industries Report 2008

Overseas subsidiaries
Subsidiaries in Japan
Non-consolidated

(t)

4,000
33

589

634

745
680 700

3,429
2,580 2,523

27

25

20

500

0.3t

*7: Nitrogen oxides

Overseas subsidiaries
Subsidiaries in Japan
Non-consolidated(kt-CO2)

2,747
2,531

2,000

16
12

Consolidated

141t

VOC Emissions

40

1,000

12kt
757kt

Air Pollutant Emissions
SOx
NOx*7

Emissions of Other
Greenhouse Gases
Overseas subsidiaries
Subsidiaries in Japan
Non-consolidated

745kt

296kt
CO2
Other greenhouse gases(HFC, SF6, etc.)
3kt
Total
299kt

Non-consolidated

CO2 Emissions

Consolidated

0(FY) 04

05

06

07

08

0
(FY) 04

05

06

07

08

0
(FY) 04

05

06

07

08

CO2 Emission Conversion Factors

Chemical Substances

Packaging Materials

Chemical Substances
Consumption (Japan only)

Packaging Materials
Consumption

Water
Water Consumption
Overseas subsidiaries
Subsidiaries in Japan
Non-consolidated(million m3 )

8
6.88
5.60

Non-consolidated

7.23

05

06

07

10,000

9,215
8,445

3,031t40(FY) 04

Overseas subsidiaries
Subsidiaries in Japan
Non-consolidated(t)•PRTR law*3
designated substances

6.66

6.18

Consolidated*3: Short for Pollutant Release andTransfer Register, the PRTR law is ascheme whereby businesses measure
the release and transfer of
PRTR-designated pollutants and reporttheir performance to the government.
The government then compiles this data
and releases it to the public.

08

Focus of Environmental
Activities

6,616 6,549

4,136t

FY2008Results

5,000

5,029

CO2 Emission Conversion Factors from Logistics

0(FY) 04

05

06

07

08

Contents
Gasoline

Conversion factor
2.32kg-CO2/kWh

Light oil

2.62kg-CO2/kg

LPG

3.00kg-CO2/l

Major Environmental Impacts
during Product Use

Emissions and Major Environmental
Impacts Generated during Transportation

Materials Handling Equipment

CO 2 (global warming)
NOx and particulate matter (PM) (air pollution)

Curbing Global Warming

Contents
Conversion factor
0.3817kg-CO2/kWh
Electricity*
2.3576kg-CO2/m3
City gas
3.0094kg-CO2/kg
LPG
3.2502kg-CO2/kg
Coke
2.7000kg-CO2/l
A heavy oil
2.5308kg-CO2/l
Kerosene
2.6468kg-CO2/l
Light oil2.3609kg-CO2/l
Gasoline
2.790kg-CO2/kg
LNG
3.141kg-CO2/kg
Propylene*The electricity conversion factor in the table is applied
to companies in Japan.
Overseas companies uses factors publicly announced
in each region.

Global warming caused by vehicle operation
Air pollution resulting from exhaust emissions

10% improvement compared with FY2004
levels in eco-efficiency of energy-derived
CO 2 emissions (consolidated) by the end of
FY2011

Focus of Environmental Activities
Textile Machinery

25% improvement compared to FY2004
levels (eco-efficiency indicator: 1.25)

Reduction of CO 2 emissions

Global warming caused by power
consumption

Resources Recycling

Car Air-Conditioning Compressor

Reduce landfill waste (Japan
consolidated) to less than 1% of
FY1999 levels by the end of FY2011

Global warming caused by vehicle operation
Global warming caused by CFC substitutes

Less than 1% compared with FY1999 levels

Further reductions in emissions of
substances of concern (Japan consolidated)by the end of FY2011 to 95% of FY2004
environmental impact levels

EngineFocus of Environmental Activities

1% reduction compared with FY2004 levels

Waste

PRTR Law-Designated Substances

Into theatmosphere
Into waterways
Into soil
Total

Waste Generation
626t
12t

–

–

543t

638t

Global warming caused by power
consumption and vehicle operation

Water Pollutants (Japan only)

Overseas subsidiaries
Subsidiaries in Japan
Non-consolidated(kt)Electronics

Into Waterways

Consolidated

536t
7t

Global warming caused by vehicle operation
Air pollution caused by exhaust emissions

Toyota Industries pursues product developmentthat takes into account the 3Rs ̶ Reduce, Reuse
and Recycle. This is achieved by reducing waste
through making products longer-lasting, smaller
and lighter; reusing components; and recycling
used products by reprocessing them and using
them as different materials.

*4: Volatile organic compounds*5: Fluorocarbon substitute*6: Sulfur oxide

Non-consolidated

Global warming caused by vehicle operation
Air pollution caused by exhaust emissions

CO 2 emissions during recycling (global warming)
Generation of waste

Reduction in Environmental Risk

Emissions (Japan only)

VehicleMajor Environmental Impacts during
Recovery, Recycling and Disposal

200
137

Consolidated

20t
0.5t
13t

23t
0.6t
20t

NitrogenPhosphorous
COD*

148

Non-consolidated

8

CO2 from Logistics
CO2 Emissions from
Logistics Operations (Japan only)
Subsidiaries in Japan
Non-consolidated(t-CO2)30,00024,855*8: Chemical oxygen demand(indicator of the degree of water pollution)

20,60020,000100

Transfers (Japan only)
Non-consolidated

Consolidated

Waste

129t

Sewage

–

867t
–
867t

Total

129t

81

83

Wastewater Discharge (Japan only)90(million m3)

Subsidiaries in Japan
Non-consolidated

10

7.28
5 4.950(FY) 04

06

07

08

(FY) 04

05

9,341 9,910

4.55 4.58 4.25

005

10,000 8,571

06

07

08

0
(FY) 04

05

06

07

08

*Certain environmental data have been updated

Toyota Industries Report 200835

Environmental Initiatives

Targets and Results of the Fourth Environmental Action Plan
Outline of the Fourth Environmental Action
Plan
As one of Toyota Industries’ major approaches to the environment,
we devise and implement a five-year Environmental Action Plan. In
the Fourth Environmental Action Plan (fiscal 2007 to fiscal 2011),
curbing global warming, using resources more efficiently, reducing
environmental risk factors and consolidated management are
positioned as the key areas of environmental activities. Target
management is measured by the concept of “eco-efficiency,” whichquantifies the effectiveness of our environmental activities.
During fiscal 2008, we focused primarily on the developmentof products with superb environmental performance, four of which
received in-house accreditation as eco-products. We also strove tofurther improve production eco-efficiency through the introductionof more efficient equipment and the implementation of efficiency
improvement measures.

Eco-Efficiency Calculation Formula

Product
Eco-efficiency =Product functions
Environmental impact of products

Production

Production indicator(Net sales or production volume, etc.)

Production efficiency =Eco-efficiency =Environmental impact
of production activities
Production efficiency in subject year
Production efficiency in base year

Progress of the Fourth Environmental Action Plan (Product-Related)
Action Policies

CurbingGlobalWarmingSpecific Actions

FY2008 Achievements

Automobile-related•Develop technologies to reduce vehicle
products: Promoteweightthe development•Develop engines to meet fuel efficiencyof technologies
targets set during the product planningthat achieve thestage
best fuel-efficiency•Develop high-efficiency car airperformance in eachconditioning compressors
country and region•Expanded the range of electricallydriven compressors•Developed new continuous
variable-displacement
compressors

Non-automobilerelated products:
Promote thedevelopment oftechnologies that
achieve the bestenergy efficiency inthe industry•Develop technologies to improve theenergy efficiency of lift trucks•Develop industry-leading, energy-saving
technologies for textile machinery•Improve the energy efficiency of industrial
engines•Improved fuel efficiency of shovel
loaders by 15%

Promote thedevelopment ofdevices for clean
energy vehicles•Further improve the performance ofdevices for hybrid vehicles•Develop devices for the next generationof fuel-cell vehicles•Improved power density of DCDC converters for hybrid vehicles
by 67%

FY2009 Plan

Page

•Expand the range of electricallydriven compressors•Develop new continuous variabledisplacement type compressors•Make DC-AC inverters for vehicles
smaller•Improve fuel efficiency of engines

P38,
39

•Improve durability of lift truckparts•Establish targets forrecoverability rate for products

P40•Steadily reduce lifecycle environmental
impact through implementation of lifecycle •Reduced power consumption of
Reduce greenhouse assessments (LCA) for all products
unit-type automated storage andgases throughout•Develop products with high eco-efficiency retrieval systems for pallets byproducts’ lifecycles •Develop car air-conditioning compressors 15%
that use refrigerants with low global•Improved fuel efficiency of engines
warming potential (GWP)

Using
Resources
More
Efficiently

Further promote
the use of designs
that are based on
the Designs for
Recycling (DfR)
concept•Steadily improve recyclability throughthe establishment of recyclability
assessments for all products•Develop products that are easy todismantle and recycle•Improved dismantling feature of
DC-DC converters and utilized
reclaimed materials•Established targets forrecoverability rate*1 for developed
products•Eliminate use worldwide of the four
•Established compliance structure
Promote stricter
substances of concern (lead, mercury,for REACH (Registration,•Comply with voluntary control ofcontrol of and further
cadmium and hexavalent chromium) (some Evaluation, Authorisation andfour substances of concern
reduction in the use
parts are exempted)
restriction of Chemicals) regulations •Establish chemical substancesof substances of•Increase the number of substances of•Started voluntary control of four
control system
Reducing
concernconcern that are subject to controls
substances of concern
Environmental

Risk Factors Reduce exhaust•Develop high-efficiency clean diesel
emissions to improveengines
air quality in urban•Introduce top-performing, low-emissions
areas in all countries
lift trucks
and regions•Complied with domestic
emissions regulations for lift
trucks•Complied with emissions
regulations for automobiles

P41•Comply with domestic emissions
regulations for lift trucks•Comply with emissions
regulations for automobiles*1: Recoverability rate refers to reusable, recyclable and energy-recoverable rate relative to the weight of new vehicle

36

Toyota Industries Report 2008

Progress of the Fourth Environmental Action Plan (Production-Related)

Reduce CO2
emissionsthrough green
logistics

Enhanceresource
productivity

Control Items

Specific Actions

Reduce CO2 from energy use•Streamline production processes•Optimize supplied energy•Promote introduction of alternative
energy sources

FY2008 Achievements
Target Result Assessment

Non-consolidated
Energy-derived CO2
eco-efficiency

1.30

1.36

○

Non-consolidated
Emission volume perunit of sales (unit:
t-CO2/100 million yen)

26.1

24.3

○

Consolidated
Eco-efficiency

1.19

1.25

○

FY2009 Plan

Page

•Curb total CO2 emissions
and improve emission
volume per unit of sales
amid business expansion•Launch Company-wide CO2
reduction conference andpromote activities

P42,
43

Consolidated
Emission volume perunit of sales (unit:
t-CO2/100 million yen)

38.9

37.2

○

CFCs
•Review production process•Look for alternative materials--

3ktCO2-•Promote modal shift•Devise green logistics guidelines andstrengthen cooperation with contractors

-

1.01

1.07

○

•Expand modal shift•Improve load capacity

Resources•Reduce the volume of discarded materials Non-consolidated
External disposal ecoby taking action at the source, such as
efficiency
improving yields and other measures•Promote internal re-use

1.00

1.12

○

•Reduce external disposal
through reduction of defects
and improvement of yields

Non-consolidated
Packaging materials•Reduce use of timber-derived packaging Packaging material
eco-efficiency
materials

1.35

2.06

○

•Reduce use of wood andcardboard as packaging
materials

924

714

○

•Switch to industrial waterfrom groundwater•Expand wastewater recycling○•Select reputable recycling
contractors•Promote further segmentationand optimization of waste
separation○•Strengthen activities toreduce environmental
abnormalities/claims throughreciprocal patrols among
plantsReduce use ofgroundwater•Promote recycling of wastewater•Reduce use of water

Non-consolidated
Groundwater use(unit: km3)

Reduce total
environmental
impacts ofwaste disposal•Eliminate landfill disposal at all
consolidated manufacturing companies•Establish measures to evaluate
environmental impact of waste disposal

Manufacturing sites inJapanLandfill volume (unit: t)

Minimize
environmental
risks•Establish environmental risk assessment
systems at the planning stage (incorporate
measures to reduce environmental
impacts in the business planning stage) •Devise pilot guidelines for prior•Ensure appropriate management ofassessment systemchemical substances in accordance with •Commence full implementationsocial conditions•Enhance risk communication withstakeholders such as local residents

Further reduce
emissions of
substances ofconcernNon-consolidated•Reduce emissions of air pollutants,
17%
20%
Environmental impact×including volatile organic compounds
reduction reduction(unit: index)(VOCs)−Expand use of water-soluble andManufacturing sites inpowdered coatings
Japan
23%
21%
×
−Introduce VOC removal equipment
Environmental impact reduction reduction•Reduce emissions of water contaminants (unit: index)

183

46

•Devise regulations•Apply to 27 items

Reducing
Environmental
Risk Factors

Promote energy
reductionand energy
conservation
throughinnovative
production
technologies

Production

Waste

Using
Resources
More
Efficiently

Raw Materials

Logistics

CurbingGlobalWarming

Production

Action Policies

P44

P45
•Expand use of watersoluble coatings in Materials
Handling Equipment andVehicle businesses

Progress of the Fourth Environmental Action Plan (Management)
Action Policies

Specific Actions
Business partners•Further promote green procurement−Improve environmental performance by supporting the establishment and promotion ofenvironmental management systems (EMS)−Enhance management of substances of concern

Consolidated
Management

Strengthen
cooperation withbusiness partners

Group companies•Promote consolidated environmental management by enhancing mutual communication−Thorough environmental compliance (all companies)−Establish EMS (sales and service companies)−Introduce green procurement and environmental accounting (manufacturing companies)−Improve environmental performance and enhance external environmental
communication (manufacturing companies)

FY2008 Achievements•Confirmed management
systems for substancesof concern at all business
partners•Supported environmental
management at Group
companies

Toyota Industries Report 200837

Environmental Initiatives

Curbing Global Warming from Products
Approach to Curbing Global Warming
Products developed and manufactured by Toyota Industries
inevitably exert various types of impact on the environment during all
stages of the product lifecycle, including usage by customers andfinal disposal. These impacts include global warming from energy
consumption, resource depletion from the use of raw materials andthe emission of polluting substances at the time of final disposal. We
believe that adopting initiatives starting from the development stage
is particularly crucial for minimizing the environmental impact of our
products. Acting on this belief, Toyota Industries has introduced theEnvironmentally Friendly Product Certification System in an effort
to promote a broad array of environmental considerations, such as
curbing global warming.

Environmentally Friendly Product
Certification System
Certification Flow
Development Department
Problem

Certification Committee
Independent Verifying
Organization

Problem

Product Technology
Subcommittee

Problem

Certification

Eco-Friendly Product Certification System
Our proprietary Environmentally Friendly Product Certification
System was established with the aims of pursuing environmental
considerations during product development and properly providing
Toyota Industries’ customers with information on its eco-friendly
products. This system is based on the International Standards
Organization (ISO) Type II environmental labeling standard* (ISO14021). Environmentally friendly products are certified if they meet
Toyota Industries’ in-house regulations in consideration of the main
themes of the Fourth Environmental Action Plan, which was launchedin fiscal 2007, during their product development.
Assessment under the certification program is conducted withfocus on two categories. The first is a Factor Assessment, whichassesses quantitatively how much the newly developed product’s
eco-efficiency has improved compared with that of the base product(existing Toyota Industries product). The second is a Development
Process Assessment, which includes assessment of factors suchas fuel efficiency improvements, smaller size and lighter weight.
Products that satisfy the criteria are then checked by an independent
verifying agency and evaluated within the Company before being
granted certification. Certified products carry a Toyota Industries
environmental label.
Under the Type II environmental labeling standard, ISO requires
only self-declaration by the enterprise (no independent third-party
certification required). To create an even more reliable program,
however, Toyota Industries has decided to have its self-assessment
confirmed by Bureau Veritas Japan Co., Ltd., an international
inspection and certification organization.
* Environmental labeling: Labeling that conveys to consumers the environmental aspects ofa product or service through printed text on the product, advertisements, symbol marks andother means. ISO has established three categories of environmental labels: Type I labels,
which indicate certification by an independent verifying organization; Type II labels, whichindicate self-declaration by the enterprise that certain standards have been met; and Type III
labels, which provide environmental impact data for the product.

Environmental Label
Certified products carry an“environmental label” containing
the mark shown on the left on
the product itself, its packaging,catalogs and other materials.
The mark’s circle represents the
Earth, wrapped in a green leaf.

38

Toyota Industries Report 2008

Certification Criteria
Products that meet the Factor Assessment and Development
Process Assessment are certified as Environmentally Friendly
Products.

Factor Assessment
Rationale Embodied in the Factors
Improve product and service values

Maximize product performance and value

Reduce environmental impact

Minimize impact on the environment

Factor Computation Method
Functionality*1 of developed productEco-efficiency ofdeveloped product

Factor =Environmental impact of developed product=Eco-efficiency of acomparable product

Functionality of comparable productEnvironmental impact of comparable product

Assessment Category

Certification Standard

Curbing global warming

CO2 emissions volume

Using resources more
efficiently

Resource consumption
volumeReducing environmental
risk factors

Environmental impact
substances

Any of the factors in theassessment categories atthe left is equal to 1.3 orabove. Otherwise, all thecategories are equal to 1.0
or above.

*1: Product functionality = Basic functionality
Examples: Cooling capabilities for car air-conditioning compressors; volume of work during
product lifecycle of lift truck

Development Process Assessment
All items listed are evaluated.
Assessment Category
Curbing
globalwarming

Energyconsumption

Items for Consideration
Improved fuel efficiency(engines, internal combustion lift trucks)
Improved cooling capability(car air-conditioning compressors)
Reduced amount of energy consumption (textile
machinery, electronic parts, electric lift trucks)

Using
resourcesmore
efficiently

Resource
savings

Miniaturization and reduced weights
Reduced number of parts
Use of recycled parts and materials as well as
recyclable materials

Recycling

Improved ability to break down and sort
Indication of raw materials used
(plastics, rubber parts)

Environmental Substances
risk factorsof concern
Environmental Provision
informationof information

Number of fastening parts limited to bare minimum
Improved the recoverability rate
Satisfying in-house regulations for control
Information about collection, disassembly,
disposal and recycling methods provided inoperation manuals

Examples of Products Certified in Fiscal 2008

Rack Sorter

Two-Wheel Drive Shovel

CO2 factor 1.18

CO2 factor 1.03-1.15

Energy-Saving Operation Achieved through Installationof Regenerative Units and More Efficient Movement

Realizing Excellent Fuel Economy with an ElectronicallyControlled Internal Combustion Engine

Launched in May 2007, the Rack Sorter P, a unit-type automatedstorage and retrieval system for pallets, incorporates a speedcontrol function and realizes energy-saving
operations. For loading and unloading,when the sorter’s traveling in a certain
direction requires a longer time, the hoisting
and lowering acceleration/deceleration
will be controlled in accordance with therequired traveling time, thereby reducing
energy used for acceleration/deceleration.
Accordingly, unnecessary motion iseliminated without delaying storing andretrieving at the warehouse.
Combining the speed control
with the optional regenerating unit*
enables a 15% reduction in energy
consumption compared withprevious models.

The Shovel Loader, our new two-wheel drive shovel launched in
September 2006, incorporates an electronically controlled internal
combustion engine as a standard feature.
This engine minimizes the amount of fuelinjection by cutting fuel consumption
during idling, thereby realizing highpower output and improved
fuel economy, with fuelconsumption reduced
by approximately 15%
compared with previous
models.

Fuel Consumption*
The fuel consumption of previous models is set at one.
１

* Optional regenerating unit: device for recovering excess energy for reuse as electric power.

Approximately

15% reduction
Speed Control Function of Rack Sorter P
New Rack Sorter P

Rises
up

Rises
up
A smaller amount of energy isconsumed when rising up.

Previous model0

The hoisting and lowering motion is controlled sothat it finishes at the same time as traveling.

Rises
up

TravelHoisting and lowering motion is completed whenin motion.

Rises
up

A larger amount of energy isconsumed when rising up

TravelPower Consumption*
The power consumption of previous models is set at one.
１
Approximately

15% reduction0

New model(with option installed)

Previousmodel* Power consumption and energy savings vary depending on the model, height, lengthand speed specifications.

Newshovel loader

Previous
shovel loader* Fuel consumption shows a comparison with values based on JISD6202 testing
conditions. Fuel consumption could also differ accordingly depending on conditions(weather, road surface, vehicle and operating conditions) during actual operation.

TopicsEnvironmentally Friendly Product
Certification System Earns EcoEfficiency AwardIn December 2007,
Toyota Industries
earned the EcoEfficiency Award*
2007 from theJapan Forum on
Eco-Efficiency.
This accolade wasreceived based on the high acclaim for Toyota Industries’
introduction of an independent third-party review for its
Environmentally Friendly Product Certification System.
In the future, Toyota Industries plans to further improveits certification system by re-evaluating the criteria for
certification. We believe these efforts will lead to thedevelopment of even more environmentally friendly products.
* This award is presented in recognition of the activities of companies taking
initiatives to improve socio-economic conditions while reducing environmental
impacts.

Toyota Industries Report 200839

Environmental Initiatives

In-Product Features for Resource Saving
Approach to Resource Saving
To achieve efficient use of finite resources, Toyota Industries promotes
design and development that implements the 3Rs: reduce materials
used by using them more efficiently, reuse products and parts thathave completed their service life and recycle resources.

Major Principles of 3R Design

and re-evaluated the structure of the headlights to improve ease of
dismantling and recycling. Regarding our new unit-type automatedstorage and retrieval system for pallets (Rack Sorter P), we improved
the ease of dismantling by making it unnecessary to use special tools
to remove the wheel bearings and deceleration gear shift. To ensure
customers can use this product over an even longer operating life, wehave enhanced maintenance features by incorporating an automaticfunction for displaying a parts-replacement warning.

ReduceRationalize the use of raw materials, etc./promote
long-term use of products

3R
DesignReuse
Make better use of raw materials/improve
construction/ensure the safety of the disposal
process
RecycleCreate recycle-friendly designs
Make better use of raw materials/improve
construction/improve the methods for separating
trash for recycling/ensure the safety of thedisposal process/consider recycle-friendly design
with minimal environmental impact
Create designs free of hazardous substances
Avoid banned substances/reduce the use of
substances of concern

Implementing 3R Design for All Products
To ensure easy implementation of reducing, reusing and recyclingof resources, starting from the development and design stages wepursue the rationalization of raw materials usage and the safety
and efficiency of dismantling processes. Several examples illustrate
the scope of our efforts in this area. For our new two-wheel drive
shovel (Shovel Loader), a certified Environmentally Friendly Product,
Toyota Industries utilized recycled materials for the counterweight

Headlight

Rack Sorter P display for parts replacement warning

Utilization of Reclaimed Materials
Our DC-DC converter for electric power steering (EPS) downconverts the high voltage of a hybrid vehicle into a lower voltage
for use by the EPS. We have improved dismantling features andenhanced the ease of recycling by utilizing reclaimed aluminum forthe converter’s case and reducing the number of fastened parts.
Also, by significantly re-evaluating electronic parts and making suchinnovations as optimizing the configuration of the heat dissipation
structure through the use of computer-aided engineering (CAE), we
minimized an increase in the size of the converter that accompanied
an expansion in power output. At the same time, we reduced theamount of raw materials used.

DC-DC converter

Installed Model: Lexus LS600h
Counterweight

Shovel loader

40

Toyota Industries Report 2008

Positioning of DC-DC
converter (above HV battery)Environmental Initiatives

Reduction of Product-Derived Environmental Risks
Approach to Environmental Risks

Environmental Measures for GENEO-PRO

As measures to reduce environmental risks during the productusage and final disposal stages, Toyota Industries works to lower or
eliminate the use of substances of concern while striving to reduceengine exhaust emissions.

The GENEO-PRO lift truck underwent a minor change in 2007.
The product now features an electronically controlled internal
combustion engine and a three-way catalytic muffler as standard
equipment. These features enable clean exhaust emissions, lower
fuel consumption and a reduction in substances of concern whileachieving high power output (in compliance with Japan’s 2007
special motor vehicle exhaust emission regulations).

Management of Substances of Concern
The management of products containing substances of concern has
become increasingly critical in line with implementation of Europe’s
REACH*1 regulation enacted in June 2007. Accordingly, Toyota
Industries has totally rebuilt its Chemical Substances Management
System and strengthened the functions and handling capabilities
to comply with REACH legislation. We are now firmly positioned toquickly provide customers with in-depth information, while swiftly
responding to public inquiries by providing information on products
containing substances of very high concern (SVHC) as stipulated
by REACH. In designing our Chemical Substances Management
System, we established a flexible system framework to respondto additional environmental regulations in the future. Together withstrengthening such internal structures, we are also enhancing ourindividual consulting to business partners so that they can quickly
provide information on chemical substances contained in theirproducts.
In compliance with the European Union’s (EU) directive on endof-life vehicles (ELV), which targets automobiles and automotive parts,
Toyota Industries has completed its replacement of four substances
prohibited by the directive, specifically lead, mercury, cadmium andhexavalent chromium with alternative substances. We are working ona changeover for currently exempt applications under the EU’s ELV
directive. Additionally, Toyota Industries aims to eliminate use of thesefour substances in its lift trucks and other non-automotive products
not covered by the directive.

Exhaust Emissions Reduction
By adding a three-way catalytic muffler and electronically controlledinternal combustion engine as standard features, we have achieved
a balance between realizing a lift truck with increased power andclean exhaust emissions (CO2 emissions reduced by approximately
94%, NOx emissions by approximately 97% and HC emissions byapproximately 96%).

Improved Fuel Efficiency
The use of an electronically controlled fuel-injection system enables
an approximately 7% improvement*2 in fuel efficiency of the lift truckcompared with other internal combustion lift trucks.
*2: Values in Toyota Industries’ prescribed testing conditions*1: REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) is a system
for the comprehensive registration, evaluation, authorization and restriction of substancesof concern within the EU, and targets parties involved in the manufacture and import ofsubstances of concern.

GENEO-PRO

Outline of the Chemical Substances Management System
Regulatory Compliance

Information about substances ofconcern obtained from suppliersStandard data sheet

Customers

Parts List System

ChemicalSubstances
Management
SystemReport environmental
information for delivered
products. Assist customers
with green procurement andthe development ofenvironmentally friendly
products.

Provision of
product
information

Managementof substancesof concern

Substances of concern contained in all products are ascertained toensure reliable compliance with product environmental standards suchas the EU’’s ELV directive.

Green Procurement
Supplier management and substance control based on the data
received from suppliers regarding substances of concern.

LCA

Tools forenvironmentallyfriendly design

The environmental impact of a product is calculated and assessed
throughout the production of raw materials, parts manufacture, productusage and recycling stages. This contributes to reducing environmental
impacts across the entire product lifecycle.

Recycling
Recyclability rates are compiled for each product to assist in improving
recycling rates.

Toyota Industries Report 200841

Environmental Initiatives

Prevention of Global Warming Factors in Production
Approach to Curbing Global Warming
The year 2008 marked the start of the first commitment period (2008– 2012) of the Kyoto Protocol—an international framework for curbing
global warming—amid the emergence of various problems worldwide
attributed to global warming. Toyota Industries has designated theprevention of global warming as one of its most crucial management
issues and thus focuses on “realizing energy reductions andconservation via innovations in production technology” and “promoting
measures to curb global warming.” For fiscal 2008, Toyota Industries
set the target of improving its eco-efficiency by 30% on a nonconsolidated basis compared with fiscal 1991 levels. To attain thistarget, we utilized the Toyota Production System as part of exhaustive
efforts to reduce energy consumption.
On a Group-wide basis, Toyota Industries established the targetof a 19% improvement in eco-efficiency from fiscal 2004 levels,and respective Group companies adopted proactive approaches
to achieve this goal. As one example, U.S-based Toyota Industrial
Equipment Mfg., Inc., which manufactures materials handlingequipment, reduced its natural gas consumption by enhancing theefficiency of its powder coating drying furnace. In addition, Toyota
Industries is implementing energy efficiency diagnoses and looking at
various ways to reduce energy consumption for Group companies.
Thanks to these efforts, Toyota Industries improved eco-efficiency
by 36% from fiscal 1991 levels on a non-consolidated basis and 25%
compared with fiscal 2004 levels for the Group as a whole.
Total CO2 emissions have been increasing along with an
expansion in business. With a view toward the first commitment
period of the Kyoto Protocol, we have established the CO2 Emission
Reduction Conference to make concerted efforts to promote activities
throughout our businesses to curb global warming. The conference
will act to promote rapid decision-making and facilitate across-theboard activities.

routes to reduce transportation distances and the number of delivery
trips. We also improved load capacity efficiencies and expanded ourmodal shift (switching to different modes of transportation).

TopicsIntroduction of Solar Panels (TDDK)TD Deutsche Klimakompressor GmbH (TDDK), a company
that manufactures car air-conditioning compressors inGermany, undertook initiatives to reduce increased CO2
emissions in line with an expansion in business. Solar panels
were installed over the roof area (approximately 20,000 m2) of
its production plant in December 2007. These solar panels,
the largest-scale installation in Europe, will generate close to700 MWh of power annually. This is expected to reduce CO2
emissions by around 500 tons, equivalent to approximately
3.6% of TDDK’s annual CO2 emissions.

Energy-Derived CO2 Emissions
Non-consolidated

Subsidiaries
in Japan

Overseas subsidiaries

Eco-efficiency(non-consolidated)

Eco-efficiency(consolidated)

Target (non-consolidated)

Promoting a Modal Shift (Aichi Corporation)

Target (consolidated)

Total emissions(kt)

Fourth Environmental Action Plan (Eco-efficiency)
Non-consolidated: 30% improvement over FY1991 levels
Consolidated: 10% improvement over FY2004 levels

1.22
1.00

800
600
400
200
Good 0Eco-efficiency
Good

1.34

1.36
1.4
1.30
1.25 1.2
1.19 1.0

1.01

1.02

1.00

1.01

589

634

680

700

745

04

05

06

07

08

1.23
1.06

273

(FY) 91

Reducing CO2 Emissions from Transportation
With transportation operations accounting for approximately 20% of
our energy-derived CO2 emissions, we have long collaborated withcargo carriers to reduce CO2 emissions.
In fiscal 2008, we targeted the achievement of a 1% improvementin eco-efficiency from fiscal 2007 on a non-consolidated basis.
However, we significantly surpassed this target and attained a 7%
improvement via such measures as reorganizing truck transportation

42

Toyota Industries Report 2008

Aichi Corporation, which develops and manufactures aerial
work platforms, is shifting transportation modes to reduce
CO2 emissions in its logistics operations. Specifically, Aichi isshifting to marine transport using large ships as a substitutefor transportation previously handled by trailer trucks for longdistance shipping, mainly to such destinations in Japan as
Kyushu, Shikoku and Hokkaido. This modal shift
has enabled Aichi to achieve an approximately
28% reduction in annual CO2 emissions in
Hokkaido
its logistics operations. Furthermore, marinetransportation is capable of handling large
volumes of freight, thus proving to be ahighly effective means of transportation for
reducing CO2 emissions. With this inmind, Aichi will also expand the
Aichi
Corporation
use of marine transportation
for medium-distance
Shikokushipping.
KyushuEco-Factory Activities

Flow of Prior Assessment System

Toyota Industries undertakes its eco-factory activities in view ofrealizing the ideal mode of production with consideration to theenvironment. In relation, in fiscal 2007 Toyota Industries introduced
the Prior Assessment System for verifying the appropriateness ofhealth, safety and environmental measures for buildings and facilities
at the planning stage as well as after installation or completion.
Establishing this system will enable more efficient and effective
implementation of environmental measures.

Planning

Factor in safety and environmental measures in the plan for
new buildings and facilities

Prior
Assessment

Assessment of health, safety and environmental measures

Construction
and Installation

Inspections for health, safety and environmental measures

After Opening

Confirmation of effects

Overview of Standards for Prior Assessment System
Category

Principal Categories for Verification

HealthHealth andand safety
safetyLegal compliance
Legal compliancePrevention ofof environmental
environmental accidents
accidents
Prevention
Improvement of eco-performance
Improvement of eco-performance

Meeting standards for use of specified chemical substances, dust, summer temperatures, etc.
Compliance with the Air Pollution Control Law, Water Pollution Prevention Law, Noise Regulation
Law, Vibration Regulation Law, etc.
Implementation of measures to prevent underground seepage
Reduction of CO2 emissions, reduction of externally discharged waste, reduction of water usage,
curbing of VOC emissions, etc.

TopicsEnvironmentally Friendly TMHG Technical Center❶ Light Duct and Light Control System❶

Light duct system
Lets sunlight inside the building asa substitute for regular office lights
Light control system
Controls the degree of lighting toan appropriate level❷

Effect in reducing CO2 emissions:

40 t-CO2 annually❷❸❷ Rooftop Greenery
Effective in reducing solar heatgain and electrical heat for
better cooling efficiency

Effect in reducing CO2 emissions:

3.4 t-CO2 annually
In December 2007, the TMHG Technical Center was constructed
at our Takahama Plant, which develops and manufacturesmaterials handling equipment, under the framework of our Prior
Assessment System. In keeping with the concepts of “curbing
increases in office energy consumption” and “thoroughlymanaging newly installed equipment and visualizing energysaving effects,” environmental considerations encompass all
aspects of the new building. A central focus was placed on
global warming prevention measures such as making use of solar
power and rooftop greenery.

❸ Solar Power Generating System

Effect in reducing CO2 emissions:38.3 t-CO2 annually

Toyota Industries Report 200843

Environmental Initiatives

Resource Utilization in Production
Approach to Waste Reduction

Approach to Water Consumption

To promote the effective utilization of finite resources, Toyota
Industries aims to improve resource efficiency and reduce waste
generation at the source through such measures as increasing yields
at every manufacturing process, while also promoting in-house reuse
and recycling. In fiscal 2008, we implemented a host of improvement
measures such as reducing the use of steel materials in the Textile
Machinery Business. As a result, we attained our target for ecoefficiency, with a 12% improvement compared with fiscal 2004 levels.
We also promoted segmentation and optimization of separated
waste to achieve zero landfill waste at subsidiaries in Japan. As aresult, in fiscal 2008 we disposed of 46 tons of waste at landfill sites,a more than 99% reduction compared with fiscal 1999 levels.
We will continue to thoroughly implement improvement activities
directed toward achieving a balance between business efficiency andresource efficiency.

Giving strong consideration to the risks of ground sinkage, Toyota
Industries places particular emphasis on efforts to curtail the use ofgroundwater. In fiscal 2008, Toyota Industries achieved its target byrealizing a 44% reduction in the use of groundwater compared withfiscal 2004 levels by taking such steps as changing its feed water
control method and switching to greater use of industrial water.
Conversely, despite undertaking water-saving activities at each plant,
including recycling of wastewater and recovery and reuse of steam
drainage, the total volume of water used in fiscal 2008 rose 1%
from the previous fiscal year due to increased production and fullscale operation of the Anjo Plant. We will strive to reduce total water
consumption through such initiatives as implementing water-saving
measures in all manufacturing processes and making thorough efforts
to recycle wastewater.

Waste Generated
Waste moved offsite

Total Water Consumption

Eco-efficiency

TargetWaste amount
(kt)

0.93

81

80

0.98

1.00

120

96

Eco-efficiency

Good

Fourth Environmental Action Plan (Eco-efficiency)
Non-consolidated: 5% improvement over FY2004 levels

110

1.02
112

1.12
1.00
109

1.2
1.0

GroundwaterIndustrial water
Target (Groundwater use)

Fourth Environmental Action Plan (Groundwater use)
Non-consolidated: Less than 50% of FY2004 levels (less than 633km3)

Water consumption
(km3)

0.8

3,028

0

3,162

3,166

3,186

3,197

2,000

40
Good

Public water supply

1,267
(FY)

04

05

06

07

08

0
Good

(FY)

04

1,333
05

1,189
06

1,029
07

924

714

08

Topics

Improved Packaging Method for Pistons

Reducing Groundwater Use

In the Car Air-Conditioning Compressor Business, piston parts
produced at the Higashiura Plant were previously packed into
small cardboard boxes and shipped to our overseas subsidiaries.
To decrease the amount of cardboard used, we began using
egg-pack plastic packaging materials as a substitute for dividers
and shock-absorbing materials, which enabled us to eliminate
the use of cardboard boxes and increase load capacity. Unlike
cardboard packaging materials, egg packs can be reused
repeatedly, thereby reducing the volume of waste cardboard by
70% annually.

The Kariya Plant, which develops and manufactures textile
machinery and car air-conditioning compressors, uses
groundwater when faced with a shortage of industrial water.
When the amount of industrial water supplied per hour to the
Kariya Plant exceeded the contracted amount, the control device
on the plant’s water-drawing pump would recognize this situation
as a shortage of water, regardless of the actual water level in theplant’s raw water tank, pumping unneeded groundwater to theplant. To correct this situation, we adopted a new control method
whereby the plant’s water-drawing pump operates according
to actual water levels. As a result, the Kariya Plant now pumps
only the necessary amount of groundwater, reducing the total
groundwater use by 25,000 m3, or approximately 43%, annually.

Packaging of Piston Parts

Rainwater Capture System

Before improvement

44

Toyota Industries Report 2008

After improvement

Completed in December 2007, the Takahama Plant’s TMHG
Technical Center (see page 43) is installed with a rainwater
capture system to make more effective use of water resources.
Rainwater collected on the roof of the building is stored for suchuses as watering rooftop greenery as well as lavatory flushing.

Environmental Initiatives

Reduction of Environmental Risks in Production
Risk Assessment Program
Toyota Industries recognizes that its wide-ranging business activities
entail crucial responsibility for protecting the environment of local
communities and preventing any adverse impacts from environmental
accidents. Accordingly, Toyota Industries’ action policies for the
reduction of environmental risks in production place emphasis on the“minimization of environmental risk factors” and “further reductions in
the emissions of substances of concern.” In carrying out its activities,
Toyota Industries utilizes its own quantified environmental impact
index* to calculate environmental impacts.
For fiscal 2008, a 20% reduction in the environmental impact
index was targeted on a non-consolidated basis and a 23%
reduction on a consolidated basis (manufacturing companies inJapan) compared with fiscal 2004 levels. To attain these targets,
we implemented such measures as changing our piston coating
method (Car Air-Conditioning Compressor Business) and raising athinner recovery ratio (Vehicle Business). Despite progress, we fellslightly short of our targets, attaining a 17% reduction on a nonconsolidated basis and a 21% reduction for consolidated operations.
This was due mainly to the effects of a production increase in the
Materials Handling Equipment Business and giving priority to theimplementation of measures to curb global warming in lieu of largescale energy consumption countermeasures.
We intend to promote more balanced activities to reduce theCompany’s environmental impacts as well as overall impacts on
global warming. Through such measures as expanded use of waterbased coatings in the Materials Handling Equipment and Automobile
businesses, we aim to attain fiscal 2011 targets set out in the Fourth
Environmental Action Plan.

oils, we have drilled observation wells at all plants to conduct regularchecks.

Trichloroethylene Readings (FY2008)
Weighted Average Concentrationin Groundwater (mg/l)

Current Status

Kariya Plant

0.99

Cleanup in progress

Kyowa Plant

0.79

Cleanup in progress

Plant

Legal Compliance
In November 2007, it was learned that oil concentration levels in
wastewater at the Obu Plant surpassed standard values. The primarycauses of this incident was a decline in oil-dissolving and processing
capabilities due to faulty coagulation at the plant’s wastewater
treatment facility, as well as an ambiguous framework for detecting
abnormal values in wastewater. To prevent a recurrence, we switched
to a different coagulant and made Company-wide improvements
to our framework for facilitating communications and detecting
abnormal values in wastewater. We will strengthen our approachto realizing zero abnormalities and claims by taking such steps as
carrying out reciprocal patrols among our plants.
In fiscal 2008, both in Japan and overseas, no infringements ofenvironmental legal standards were committed and Toyota Industries
was not subject to any fines or penalties. Also, no environmentrelated legal action was taken against Toyota Industries.

Topics

VOC* Reduction by Overseas
Subsidiaries

Environmental Impact Index
Consolidated (index)

Non-consolidated (index)(index)

Non-consolidated target (index)

140
120

100

100

97.0

80

Consolidated target (index)
Fourth Environmental Action Plan (Environmental impact)
Non-consolidated: 10% reduction from FY2004 levels
Consolidated: 5% reduction from FY2004 levels

83.6

68.2

76.8 78.8

60
40
20
Good 0

(FY)

04

05

06

07

08

* Toyota Industries properly manages different substances of concern withenvironmental and water pollutant properties, among others. To clarify priority, infiscal 2007 we introduced a quantified environmental impact index for the integrated
management of environmental impacts.
<Substance covered by calculations for environmental impact index>
HFC PRTR emission volumes (VOC-derived)
Water contaminants (BOD, COD, nitrogen, phosphorous)

To prevent atmospheric pollution from VOC emissions
during the coating process, overseas subsidiaries involved
in lift truck production are proactively undertaking emissionreduction activities by changing their coating methods andimproving coating efficiency. In fiscal 2008, France-based
Toyota Industrial Equipment
S.A. switched to a coating
containing less solvents, which
reduced annual VOC emissions
by approximately 25%. In
North America, The RaymondCorporation Greene and Lift-Rite
Inc. decided to expand the useof a VOC-free powdered coating.
Toyota Tonero* VOC: Volatile Organic Compounds

Soil and Groundwater Pollution
Countermeasures (Status Report)
Toyota Industries carries out surveys and purification of soil andgroundwater contaminated from its past use of trichloroethylene asa cleaning agent. We report the survey results to local government
authorities and provide information at local community meetings. As
measures to prevent pollution from substances covered by the Soil
Contamination Countermeasures Law as well as from grease andPowder Coating Process
Heat is applied to a powder coating that uses no VOCs,
then it forms into the finished paint film
Coating

Baked on to the surface

Heating

During coating(powder condition)

Cooling

Degassingsmoothingdrying reaction
Heating(when partially melted)

During film formation(paint film in finished condition)

Toyota Industries Report 200845

Environmental Initiatives

Environmental Communication
Promoting Internal and External
Environmental Communication

BT Products Provides Environmental
Education to Local Elementary Schools

The Toyota Industries Group promotes environmental activities
closely linked with society. Working to foster a deeper understandingof our environmentally friendly products, we strive to disclose abroad array of information to the general public through such meansas our annual environmental reports, Website and exhibits. At thesame time, we are undertaking concerted efforts to interact withlocal communities, holding community roundtables and providing
environmental education programs for local elementary school
students.
Within the Company, we utilize the Environment Section of ourIntranet to communicate and share pertinent information, while ourmonthly in-house magazine publishes articles on environmental
issues to foster a greater
environmental awareness among
our employees and their families.
In fiscal 2008, we held
an Environmental Liaison
Conference, which brings
together personnel responsible
for environmental programs ateach Group company in Japan.
To further deepen environmental
communications both within
the Group and externally,
Environment information available
we will continue to focus on
via Website (http://www.toyotasharing important environmental
industries.com/csr/)
information.

In May 2007, Sweden-based BT Products AB (BTP) provided local
elementary school children with an educational program coveringsuch topics as global environmental problems and environmentrelated activities of BTP and the Toyota Industries Group. A
collection of presentation materials used in the children’s program
was displayed in BTP’s cafeteria to further enlighten employees onenvironmental issues.

Children’s environmental presentation

Environmental Awards
Toyota Industries’ environmental activities have earned wide acclaim,
and in fiscal 2008 we received environmental awards in three fields,
as shown below.

Environmental Award Earned in Fiscal 2008
Name of Award

Activities Acclaimed

ToyotaIndustries

Eco-Efficiency Award 2007 fromJapan Forum on Eco-Efficiency

Effective use of eco-efficiency via
proprietary Environmentally Friendly
Product Certification System (Seepage 39 for details.)

Kariya Plant

Outstanding Energy Management
Facility Awards from Chubu
Bureau of Economy, Trade andIndustry

Contribution to the rationalizationof energy use through continuous
implementation of energy
management initiatives

Higashichita
Plant

Environmental Project Awardof the Japan Environmental
Management Awards

Reduction in the volume of external
CO2 emissions by reducing pig ironconsumption and effective use of
scrap metals

Recipient

Participating in Eco-Products Exhibition
In December 2007, we exhibited our products at Eco-Products 2007
held at Tokyo Big Sight. The exhibition is held every year to promoteinteraction and communicate companies’ environmental initiatives.
In keeping with this year’s theme, “Diet! CO2,” we introduced ourenvironmental technologies byshowcasing Toyota Industries’
hybrid lift trucks and various
hybrid vehicle components. A
broad range of people, fromelementary and junior highschool students to various
companies and the general
Eco-Products Exhibition
public, visited our booth.

Recycled Compost Distributed to Local
Communities
Toyota Industries recycles
branches pruned from trees at its
plants as compost. The compost
is not only used to grow trees at
our plants but also distributed
free-of-charge to employees,
local residents and local facilities
for flowerbeds and vegetablegardens.

46

Toyota Industries Report 2008

Flowers in Hanakatsumi Garden
in Agui Town to which Toyota
Industries provides compost

Participating in Environmental Partnership
Organizing Club
Environmental Partnership Organizing Club (EPOC) encourages
cooperation in environmental activities carried out by companies
in the Chubu Region and promotes exchanges with citizens andschools. As a corporate member of EPOC, Toyota Industries
participates in the School Exchange Subcommittee for promoting
environmental education at schools.

Environmental Initiatives

Environmental Accounting
Toyota Industries regards environmental accounting, which evaluates
the effectiveness of its environmental activities from the perspective ofcost, as a critical tool not only for corporate management but also forthe disclosure of quantitative information about the environment. As
such, we are continually striving to further enhance our environmental
accounting systems. Environmental accounting data is collectedin compliance with the Ministry of the Environment’s Environmental
Accounting Guidelines 2005 Edition.

Scope of data collection: Toyota Industries, TIBC Corporation
Data collection period: April 1, 2007 – March 31, 2008

electricity consumption during operation as well as the GENEO-PRO
internal combustion lift truck, which is equipped with an electronicallycontrolled engine and a three-way catalytic muffler to achieve cleaner
exhaust emissions and lower fuel consumption while offering highpower output.

Environmental Conservation Benefits

Table 2The benefits of environmental conservation indicate the accumulated
outcomes of yearly environmental conservation measures. In fiscal
2008, waste generation increased approximately 11,000 tons. This isbecause since September 2006 we started counting casting debris
generated at the Higashichita Plant as waste instead of valuable
resources.

Fiscal 2008 Results
Environmental Conservation Costs

Table 1

The total cost of environmental conservation programs in fiscal 2008was ¥9.69 billion, consisting of ¥2.29 billion in investment and ¥7.4
billion in expenses. Global environmental conservation costs primarily
included introduction of a solar power generating system and lightduct and light control system at the TMHG Technical Center at the
Takahama Plant.
Research and development costs included development of
the following products: the Rack Sorter P, a unit-type automatedstorage and retrieval system for pallets that realizes a reduction in

Environmental Conservation Costs*1

Economic Benefits of Environmental Conservation
Initiatives Table 3
Toyota Industries calculates the actual economic benefits ofenvironmental conservation initiatives through calculable benefits,
including reductions in energy costs and wastewater treatment costs,
as well as profits from the sale of valuable resources. The economic
benefit achieved in fiscal 2008 was ¥7.86 billion, an increase of¥0.84 billion from fiscal 2007. The main contributor to the total was
the profits from the sale of valuable resources, which accounted for¥7.58 billion.

Table 1

FY2008Investment Expenses

Category

Principal Approaches in FY2008

Pollution prevention costs-Preventing air pollution
Business -Preventing water pollution
area costs Global environmental
conservation costs
Resource recycling costs
Upstream/downstream costs

Expanding number of plants in which water-based coating of lift trucks is
introduced
Renovation and maintenance of wastewater treatment facility
Introduction of a solar power generating system and high-efficiency motors,
countermeasures for air leakage
Promotion of waste recycling and converting waste into valuable resources
Promoting green procurement

Management costs

Newspaper advertising promoting environmental considerations,publication of Social and Environmental Report
Development of Rack Sorter P unit-type automated storage and retrieval
system for pallets, etc.
Support for environmental organizations
Purification of soil and groundwater contamination, measures toprevent occurrence of oil and grease ground seepage

Research and development costs
Social contribution activity costs
Environmental remediation costs
Total

Environmental Conservation Benefits*2
Table 2

Environmental
Impact

FY2007
Investment Expenses

1,074

753

483

866

934

3,055

875

3,147

225

1,718

4

1,715

–

25.0

–

15.3

48

906

–

1,123

–

909

92

3,592

8

14

–

10

1

26

1

20

2,289
9,689

7,400

1,455
10,494
11,949Economic Benefits of Environmental Conservation Initiatives
Table 3Comparison with
Previous Fiscal Year

Item

CO2

13kt decrease

Revenue

VOC

135t increase

Generation ofwaste products

10,783t increase

Water

442t decrease

SOX

0.04t decrease

NOX

6t decrease

COD

0

Details

Returns from sale of recycled waste products
Energy cost reductions

Cost
reductions*3 Cost reduction by resource savings (including reductions inamount of water use and amount of wastewater)
Total

FY2008FY2007

7,577

6,237

278

632

8

156

7,863

7,025

*1: Depreciation expenses are not included in environmental conservation costs. Costs and investments that
include objectives other than environmental aspects either have the difference aggregated or the component
removed.
*2: Figures are calculated after correcting the sales volume difference as the difference between the volume ofenvironmental impacts in the previous fiscal year and the volume of environmental impacts in the current
applicable period. Effects of environmental conservation = Amount of environmental impacts in previous year x(Sales volume in applicable period/Sales volume in previous year) - Environmental impacts of applicable period*3: Cost reduction is calculated by multiplying the volume of reduction in environmental impacts by the unit cost.

Toyota Industries Report 200847

Environmental Initiatives

Independent Verification

Reference View
Bureau Veritas Japan has verified environmental data collection activities at the Head Office and the designatedsites and has concluded the following.

Good Points

Opportunities for Improvement

All manufacturing sites, both national and international, are now
included in the scope of verification, in turn contributing to themonitoring and disclosure of environmental burden data of the wholeGroup more accurately.
Environmental Efficiency, added as a new report subject in 2006,
is effectively used to drive improvement actions and is a guideline for
evaluation of activities with a potential environmental impact.
For waste classification, the specification of waste types,
confirmation of amounts and clarification over its storage are deemed
to be appropriate. In addition, the handling, storage, collection andtransportation of waste management involving contracted parties are
effectively integrated and the location of waste management facilities
at each site is commendable.

Head Office/domestic plants

Follow-up on Issues from Verification Reporton Social & Environmental Report for 2007
With the introduction and implementation of revised environmental
performance data aggregation rules, there appears to be a reduced
discrepancy between the scope of data collection at each plant andthe Head Office, with closer alignment of data aggregation acrosssites.
The organizational structure which collects and processes
environmental performance data is better defined, resulting in
improved data management to better manage environmental risks.
The process for the classification of both waste and recycling
materials has been further defined and clarified, enabling theidentification of reusable and recyclable materials. Recycling activity
has increased not only at Toyota Industries’ plants but also subsidiary
and affiliate sites.

While activities are well-managed for data collection through toreporting, there is less attention currently paid to the quantitative
monitoring of parameters lessrelated to direct purchasesuch as undergroundwater usage; this could beincorporated into the data
management and reportingfor complete consumption
figures.
The management ofrecycling has improved
through implementation ofa systemic approach. There
could be room to further
improve recycling activities
through cooperation with subcontracted and third parties.

Domestic manufacturing subsidiaries
Training has been implemented for people in charge of data
management; however, to ensure continuous application of theprocesses for data management, it will be necessary to establish
such an approach across the whole Group.
The English versions of the Independent Verification Report and Reference View from Bureau
Veritas Japan are translated from the original Japanese versions. The Japanese versions
shall be the sole official texts in case of discrepancy.

Manufacturing Subsidiaries and Affiliates in the Consolidated Performance Data
Subsidiaries in Japan48

ISO14001
Certification
Acquisition Date

Overseas Subsidiaries

ISO14001
Certification
Acquisition Date

Nishina Industrial Co., Ltd.

Jan. 2002

Toyota Industrial Equipment Mfg., Inc.

Jun. 1999

Tokaiseiki Co., Ltd.

Mar. 2002

Michigan Automotive Compressor, Inc.

Jun. 1999

Tokyu Co., Ltd.

Nov. 2001

The Raymond Corporation

Mar. 1999

Mino Tokyu Co., Ltd.

May 2007

Raymond Industrial Equipment Ltd.

Feb. 2001

Izumi Machine Mfg. Co., Ltd.

Dec. 2002

Raymond-Muscatine Inc.

Sep. 2004

Hara Corporation

Nov. 2003

Lift-Rite Inc.

May 2007

Iwama Loom Works, Ltd.

Apr. 2004

ACTIS Manufacturing, Ltd. LLC

Mar. 2005

Miduho Industry Co., Ltd.

Sep. 2003

TD Automotive Compressor Georgia, LLC–

Aichi Corporation

Jul. 2004

BT Products AB

Nov. 1997

Nagao Kogyo Co., Ltd.

Oct. 2002

TD Deutsche Klimakompressor GmbH

Mar. 2002

Unica Co., Ltd.

Nov. 2002

Toyota Industrial Equipment, S.A.

Jan. 2001

Altex Co., Ltd.

Sep. 2003

CESAB Carrelli Elevatori S.p.A.

May 2006

SKE Inc.

Mar. 2003

Toyota Industry (Kunshan) Co., Ltd.

Oct. 2001

TIBC Corporation

Jan. 2000

Toyota Industry Automotive Parts (Kunshan) Co., Ltd.

–

Kirloskar Toyoda Textile Machinery Pvt. Ltd.

Jan. 2002

Toyota Industries Report 2008