Company Introduction

Web

Environmental Initiatives

Environmental Initiatives

n Product Related
Sixth Environmental Action Plan Targets

Reducing Environmental Risk andEnvironmental Management ——————— P65–67
Establishing a Society in Harmony with Nature —— P63–65

Action Policies

Sixth Environmental Action Plan
The results of our activities in fiscal 2020 showed steady progress across the board toward achieving respective
targets for fiscal 2021.

	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
and are promoting activities according to the plan. Throughactivities undertaken during fiscal 2020, we made steadyprogress toward achieving respective targets for fiscal 2021.

n Production Related
Establishing a Low-Carbon Emission Society
Action Policies/Specific Actions

FY2020 Achievements

Reduce CO2 emissions from production activities•Develop and introduce production engineering
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 production-related
logistics•Improve transportation efficiency through such measures
as modal shift and better cargo loading efficiency

Subject

CO2
emissionsControl Items

Base Year(FY)

Achievements

Targets

Nonconsolidated

Total
emissions

2006

–14%

–10%

–28%

–26%

–33%

–30%

–36%

–28%

Emissionvolume perunit of
Non1
consolidated production*

2006

Emissionvolume perunit ofproduction

2007

GlobalPromote effective resource utilization in
production activities•Reduce use of packaging materials•Monitor water input and output in each country/region
and develop and promote appropriate measures

FY2020 Achievements
Subject

Scope

Japan
consolidated
Waste
generation
volumeNonconsolidated

Control Items

Base Year(FY)

Reduce CO2 emissions throughproduct and technology
development

Establishinga Recycling-BasedSociety

Implement initiatives to promote
3R (reduce, reuse and recycle)
design for effective resource
utilization•Reduce use of resources through longer product life
•Reduce use of resources through standardization, modularization
and reduction of components•Reduce use of resources through development of technologies toenable weight reduction and downsizing•Promote reuse of components and resources•Developed new DC-DC converter•Developed next-generation engine•Developed new AC inverter•Developed fuel cell lift truck

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

Reduce emissions to improve
air quality in urban areas in all
countries and regions•Develop engines that meet future regulations•Developed next-generation engine

Manage chemical substances
contained in products•Investigate chemical substances contained in products andmanage switching over of SVHC*3 and other substances ofconcern to other substances•Supported business partners in Japan for establishinga chemical substance management system•Conducted survey on chemical substances
contained in products

Achievements

Sixth Environmental Action Plan Targets
Action Policies

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

–27%

2006

–44%

FY2020 Achievements
Subject

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

VOC*2
emissions

Scope
Nonconsolidated(automobile
body)

Control Items
Emissionvolume perunit ofproduction

Achievements

2006

–36%
(24g/m2)

FY2020 Achievements

Augment activities related toprotection of biodiversity

Augment and promoteconsolidated environmental
management•Build a global environmental management system and promote
related activities to:Comply with environment-related laws in each country and region
Formulate a medium-term plan based on visualization ofenvironmental risks and conduct activities to prevent risks fromoccurring
Enhance risk communication with relevant organizations andlocal residents
Achieve the highest-level environmental performance in eachcountry and region•Enforce strategic environmental management that integrates
environmental activities and business activities•Promoted mitigation activities•Inspected environmental risks at production
bases in Japan•Introduced Reporting System for Improvementin Sustainability Engagement (RISE)

Enhance education andenlightenment activities•Extend the scope of Toyota Industries’ enlightenment activities toconsolidated subsidiaries in and outside Japan•Give back to society the outcomes of enlightenment activities•Held various events during Environment
Strengthening Period (from June to August)•Provided education on environmental management

Promote environmental activities
in collaboration with business
partners•Ensure compliance with laws and regulations and improve
environmental performance based on the Environmentally
Preferable Purchasing Guidelines•Held briefing sessions for business partners in Japan•Held an environment-related liaison meeting ofbases in China•Pursue higher brand image through proactive information
disclosure•CDP*4 climate change: ranked A(on a performance band of A to F)•CDP water security: ranked A(on a performance band of A to F)•Received a Minister of Economy, Trade andIndustry award in the Energy Conservation Grand
Prize program (Nagakusa Plant)•Participated in All Toyota Green Wave Project•Devised biodiversity conservation action plan
within Toyota Industries premises

Promoting
Environmental
Management–29%

Improve eco-conscious brand
image

FY2021 Targets

Base Year(FY)

Specific Actions•Share the biodiversity guidelines across all Toyota Group
companies and contribute to the expansion of a habitat forliving organisms•Formulate and promote plans to link activities and connect
green zones by undertaking activities for conservation of
biodiversity throughout the Toyota Industries Group, including
at consolidated subsidiaries in and outside Japan

Targets

Reducing Environmental Risk and Establishing a Society in Harmony with Nature
Action Policies/Specific Actions•Developed new vane-type compressor•Developed next-generation electric compressor•Developed new vehicle•Reduced air consumption of air-jet looms•Developed fuel cell lift truckn Others

FY2021 Targets–44%
Emissionvolume perunit ofproduction

FY2020 Achievements

Establishinga Low-Carbon
Emission Society

Establishing a Recycling-Based Society

Promote measures against resource depletionby recycling waste•Reduce the volume of discarded materials by taking action
at the source, such as improving yields and other measures•Promote internal reuseSpecific Actions•Develop technologies that contribute to an even greater levelof energy efficiency•Develop products and technologies that respond to electrification•Develop technologies to enable weight reduction•Reduce energy loss
•Develop technologies for the realization of a hydrogen-based society

FY2021 Targets

Scope

CO2
Nonemissions
from logistics consolidated

Action Policies/Specific Actions

Corporate Information

Link to initiative details.

Vision for Environmental Activities / Structure to
Sixth Environmental Action Plan ————— P58–59
Establishing a Low-Carbon Emission Society — P61–62
Implement Environmental Management ————— P60–61
Establishing a Recycling-Based Society —— P62–63

Strategies and Businesses Promotion of ESG Initiatives

Targets–36%(24g/m2)*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 ofreduction rates of all businesses is used as our management index.
*2: Volatile Organic Compounds*3: Substances of Very High Concern*4: An international NGO running a project in which institutional investors work together and request companies around the world to disclose theirstrategies against climate change and greenhouse gas emissions data

Web
Link to the action plan.

Details of the Sixth Environmental Action Plan are available at our Website.

58

Toyota Industries Report 202059

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

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

an external lecturer for upgrading the quality of our internal
audits. The curriculum covered a method to audit on-siteenvironmental management, which is one of the priority audit
items for fiscal 2020, and participants accordingly learned
required skills.

	Environmental Audits
Global Environmental Commitment
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 thatare clean, safe and of high quality. Accordingly, in February
2011, we established the Global Environmental Commitment,a specific environmental action guideline, to be shared andimplemented throughout the Toyota Industries Group. The
entire Toyota Industries Group will dedicate concerted efforts
Aiming at realizing a prosperous life inharmony with the natural environment

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

Recycling-basedsociety

Environmental Management

Notional Diagram of Global Environmental Commitment

to realizing a prosperous life in harmony with the naturalenvironment.

	Aspirations in 2050 and the Sixth
Environmental Action Plan
Following the 2015 adoption of the Paris Agreement, aninternational framework for action against climate change, theestablishment of a low-carbon emission society has become
a global common goal. For Toyota Industries as well, theneed to take further proactive measures is growing as global
environmental issues continue to become of greater concern,with more people becoming increasingly conscious about theenvironment.
Under the circumstances, in 2016 we defined ouraspirations in 2050. The Global Environmental Commitment,
which represents our basic approach to environmental
activities, specifies four action themes, namely, 1) establishinga low-carbon emission society; 2) establishing a recyclingbased society; 3) reducing environmental risk and establishinga society in harmony with nature; and 4) promoting
environmental management. As a milestone toward achieving
our aspirations in 2050, we have formulated the Sixth
Environmental Action Plan, a five-year plan for the period
from fiscal 2017 to fiscal 2021, and will resolutely undertake
activities in accordance with the plan.

Structure to Implement Environmental Management
Positioning environmental response as one of its most crucial management issues, Toyota Industries is enhancing
its environmentally oriented corporate management on a global basis through the promotion of consolidated
environmental management.

	Promotion of Environmental Management
SystemToyota 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 Companywide integrated environmental management system (EMS),
with the president at the top.
As in the previous fiscal year, in fiscal 2020 we conducted
introductory educational courses to foster the knowledge
needed for environmental management and an introductory
educational course for environmental audits to cultivate
knowledge and techniques of internal audits. As department
heads and other personnel in managerial positions
proactively attended these courses, we were able to promote
the enhancement of environmental management and thedevelopment of internal auditors.
For internal auditors, we provided skill-up training by

60

Toyota Industries Report 2020

Environmental Management Structure
Organizations

Committees
Environmental Committee

PresidentInternal audit
Responsible internal auditor

Specialized committees•Team leader•Supervising auditors•Auditors

Product Environment Subcommittee

Chief environmental administrator
Admin office
Head Office
Corporate Planning
R&D
Purchasing
Quality Assurance
Human Resources
General Administration

Divisions
Materials Handling Equipment
VehicleProduction Environment Subcommittee
Company-Wide CO2Emission Reduction Conference
Company-Wide CO2 Zero
Emissions Challenge Subcommittee

EngineCompressor
Electronics
Textile Machinery

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

Division-Based
Promotion Committees

Toyota Industries implements annual internal environmental
audits as well as external audits carried out by anindependent third-party institute.
In fiscal 2020, the external review identified no nonconformance issues. The review, however, pointed out somematters that could potentially constitute non-conformanceat one plant. We have been making improvements regardingthese matters and sharing details with other plants.
We continued to conduct internal audits under themutual, interdivisional audit system. We strived to upgrade
our auditing capabilities by organizing audit teams with thedual goals of fostering the development of auditors andincreasing audit efficiencies. In the area of audits, our focus
was placed on environmental policy management and onsite environmental management, and we clarified how mucheach business division contributes to overall environmental
management and checked if there are any environmental
risks in each division.

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 the same time accelerate our efforts to develop
more environment-friendly products.

	Efforts for Reducing CO2 Emissions

Our Approach
For Toyota Industries, dealing with global warming is
not just a “risk.” It also presents “opportunities” in doing
business to both differentiate ourselves by leveraging ourtechnology-based product appeal and conduct ecoconscious production activities.
In our aspirations in 2050, we set a goal ofestablishing a zero CO2 emissions society on a global
basis and have been making efforts in various fields. In
the area of product development, our focus includes
electrification and increasing the fuel efficiency ofengines. In production activities, promoting thoroughenergy savings and utilizing renewable energy andhydrogen are the two pillars of our activities. As specificefforts, we will adopt solar and other renewable energy
sources and effectively utilize hydrogen while thoroughly
eliminating wasteful use of energy in production
processes and increasing the efficient use of energy.

Summary CO2 Emissions (Production Activities)
FY2020 Results

The Higashiura Plant, a compressor production base in
Aichi Prefecture, has been promoting measures to reduce
CO2 emissions from the drying and baking process, which
consumes a large amount of energy.
In the process, it is important to keep the thermal
processing equipment at an even temperature. This causes
the wasteful use of energy as it requires the same amountof energy even if there is a drop in production volume. In
response, the plant started sharing a drying and baking
process between two lines manufacturing different products
and successfully increased energy efficiency.
The drying and baking process also requires a large
amount of energy to restore the temperature of theequipment once it has stopped. In order to prevent theirregular shutdown of the equipment, the plant adopted
multifaceted measures, such as preventing product line
sorting errors by installing a sensor after the baking process
and eliminating bottlenecks by making the conveyor line
straight.
These measures enabled the plant to reduce its annual
CO2 emissions by about 298 tons.
After Improvement
Sharing

Total emissions (non-consolidated)

14
28% reduction (vs FY06 level)

FY21 target:

10% reduction

Line 1

Washing

Painting

Drying Baking

Line 2

Washing

Painting

Drying Baking

Line sorting
sensor(vs FY06 level)

Emission volume per unit of production (global)% reduction (vs FY06 level)

FY21 target:

26% reduction(vs FY06 level)

Suspended

Under the Sixth Plan, we are working toward achieving
fiscal 2021 targets of reducing total non-consolidated CO2
emissions by 10% and global emission volume per unit ofproduction by 26%, both from the fiscal 2006 level.

61Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

T O PI C

Iwama Loom Works Receiving a DirectorGeneral of the Chubu Bureau of Economy,
Trade and Industry Award as an Excellent
Energy-Saving Business Operator
In February 2019, Iwama Loom Works, Ltd., a subsidiary
manufacturing compressor parts in Aichi Prefecture, wasrecognized for its proactive energy-saving efforts andoutstanding outcome and received a Director-General of
the Chubu Bureau of Economy, Trade and Industry Award
as a business operator conducting excellent energy
management. The company presented details of its efforts
at the Symposium on the Rational Use of Energy hosted
by the bureau in January 2020.
Iwama Loom Works has been making steady andingenious energy-saving efforts, such as the promotion ofenergy just-in-time (JIT) activities that visualize and reduce
the wasteful use of energy and creation of a non-powered
karakuri mechanical pump for the recovery of liquid waste.

Yuu Sato
Group leader
Safety and Environment Group
General Affairs Department
Iwama Loom Works, Ltd.
(As of March 31, 2020)

Because gaining the understanding and cooperationof the Manufacturing Department was essential
in promoting our activities, we worked to build a
relationship of trust with them and proceeded while
checking each step together. We also devised a way
to visualize the outcome through such measures
as showing how much money we have saved byconserving energy.

Establishing a Recycling-Based SocietyWith a view to establishing a recycling-based society, we have been striving to reduce waste and theconsumption of water and other resources.

Our Approach (Waste)
Mass consumption, if continued on the back of the
expanding world population and economic growth, will
eventually deplete natural resources. Toyota Industries
believes it is essential to promote 3R (reduce, reuse andrecycle) design for effective resource utilization and therecycling of waste as resources.
We set a goal of minimizing the use of resourcesin our aspirations in 2050. Accordingly, we have been
making various efforts, including extending the life ofcomponents as well as reducing their size and weight in
the area of product development. In production activities,
implementing measures to reduce resource consumption
at the source, ensuring the maximum resource recycling
within a plant and reducing waste by using leading-edge
technologies are the three pillars of our activities.

Waste Generation Volume (Production

Summary Activities)

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

44

FY21 target:% reduction (vs FY06 level)

29% reduction(vs FY06 level)

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

44

FY21 target:% reduction (vs FY06 level)

27% reduction(vs FY06 level)

Under the Sixth Plan, we are working toward achieving the
fiscal 2021 targets of reducing waste generation volume perunit of production compared with the fiscal 2006 level by
29% on a non-consolidated basis and by 27% for Toyota
Industries and its consolidated subsidiaries in Japan.
The Toyota Industries Group seeks to reduce ocean plastic
pollution by making improvements in its business activities
and encouraging behavior change among employees.
Vanderlande Industries Holding B.V., a subsidiary engaging
in the logistic solutions business in the Netherlands, changed
the packing tape used in one of its warehouses from plastic
to paper and successfully achieved a reduction in the use ofplastic tape equivalent to about 30,000 meters per year.

Toyota Industries Report 2020

Our Approach (Water Resources)
Water is the basis of all life on the Earth and is an
irreplaceable and valuable resource. Every year, however,
we have been witnessing the increasingly severe impactsof droughts, floods and other natural disasters resulting
from climate change as well as shortages in drinking
water and agricultural water caused by the growth in
the world’s population. Many of the processes of Toyota
Industries use water for washing products and in thepainting process, and we regard the water supply crunch
caused by climate change and population growth as asignificant risk to our business activities.
In our aspirations in 2050, we set a goal ofminimizing the environmental impact on water resources.
We have identified the status of water risks at Toyota
Industries and consolidated subsidiaries and havebeen undertaking activities matched to the respective
conditions with a focus on reducing water intake,promoting recycling and purifying wastewater.

	Efforts for Recycling Water and Reducing
Water Intake
Each production base of Toyota Industries has been making
various efforts to promote the recycling of water andreduction of water intake.
For example, Toyota Industry (Kunshan) Co., Ltd. (TIK),
a subsidiary manufacturing lift trucks and foundry parts in
China, has implemented a variety of measures and achieved
zero wastewater from plant production processes. These
measures include purifying and reusing wastewater frompainting processes and installing evaporative concentrationequipment and reverse osmosis (RO) membranes to purify
wastewater for reuse and to reduce wastewater discharge.
TIK intends to maintain zero wastewater and help reduce
the environmental impact on public waters while continuously
working to reduce water intake.
Flow of Reusing Wastewater from Production Processes
Reusing (recycling)
Evaporative
concentration Biotreatment by RO membraneprocessing microorganisms

Oil and water
separation

Plant

Discharge
Waste (oil sludge)
What isan RO
membrane?

Waste (concentrated liquid waste)

Only water molecules
go through themembrane.

Water molecules
Contaminants(bacteria, heavy metals, etc.)

FY2020 Results	Efforts for Reducing the Use of Plastics

62

Additionally, Toyota
Material Handling
Manufacturing Italy (TMHMI),a subsidiary manufacturing
materials handling equipment
in Italy, installed water
dispensers at its production
sites in the summer of 2019
Employees holding their personal bottles
and gave away reusable
water bottles to employees, thereby promoting the reductionof PET bottles. The initiative was expanded in November
2019 to include its offices.

Reducing Environmental Risk and Establishing a Society inHarmony with Nature
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 the conservation of biodiversity toward realizing a society in harmony with nature.

Our Approach (Conservation of Biodiversity)
Deforestation is now proceeding in various parts of theworld, causing the fragmentation of the habitats of livingorganisms. In order for humankind to live in harmony withnature, it is essential to protect nature in each region.
In our aspirations in 2050, we set a goal ofgenerating a positive influence on biodiversity andhave been conducting various business activities
while continuously paying attention to their impact
on the natural environment. We have also formulated
the biodiversity policy and been promoting initiatives
accordingly. The policy clearly stipulates that we seek
to reduce the impact of our business activities on

biodiversity and work with local communities for theconservation of biodiversity.

	Creating an Animal Path to Improve Natural
Habitats of Living Organisms
In recent years, we have found that foxes are living in
the wooded area surrounding the Higashiura Plant in
Aichi Prefecture. But because there is not a large enoughhabitat, many were fatally involved in traffic accidents on
the neighboring roads. To provide a safe passage between
these wooded areas, Toyota Industries created an animal
path within the plant premises and has been checking the
inhabiting status. Since observing a fox on the animal path63

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

for the first time six months after its creation, we have been
regularly seeing foxes using the path. We will continue tomonitor the status while implementing additional measures asnecessary to create a better environment.

Foxes using the animal path	Chita Peninsula Ecological Network ForumAs part of efforts to conserve biodiversity, Toyota Industries
collaborates in an initiative of the Aichi prefectural government
to promote the development of ecological networks within
the prefecture.
In fiscal 2012, we joined the Chita Peninsula Ecological
Network Council and have since been carrying out activities
linked to the local natural environment while working withvarious concerned parties, including local governments,
companies, NPOs, expert bodies and students.
At the Chita Peninsula
Ecological Network Forum
held in December 2019
under the theme of “theday when foxes comeback,” we exchanged
views with participants on
Chita Peninsula Ecological Network Forumthe status of Japanese
red foxes once declared
regionally extinct and conducted a presentation on our animal
path initiative. We will continue to collaborate with local
communities and proactively undertake activities to expand
ecological networks.

	Joint Initiative of Toyota Group Companies
to Conserve Endangered Bird Species in the
Kinuura Bay Area
Under the Sixth Plan, we formulated a plan to connect
green zones by undertaking activities for the conservationof biodiversity throughout the Toyota Industries Group. Each
plant of Toyota Industries has been collaborating with various
concerned parties to carry out initiatives matched to the local
characteristics.
Under the guidance of experts, the Higashichita Plant, anengine production base in
Aichi Prefecture, has beenworking with other Toyota
Group companies torestore Kinuura Bay to its
original state by protecting
endangered bird species
in its coastal area. Their
Plant-wide bird survey
at the Higashichita Plant
efforts in the future will

64

Toyota Industries Report 2020

focus on creating a natural environment that has a constant
supply of fresh water, which is essential for living organisms,
and is inhabited by insects the birds feed on.

	Cooperating with an NPO to Provide
Environmental Education to Children
Toyota Material Handling Mercosur Indústria e Comércio deEquipamentos Ltda (TMHM), a subsidiary manufacturing
materials handling equipment in Brazil, has been carrying out
environmental enlightenment activities both in and outside thecompany.
In August 2019, TMHM provided environmental education
to children in cooperation with the NPO Casa do Caminho.
At the event, children received a lecture on air pollution andglobal warming and talked about how these two issues
impact their daily lives and what they can do to prevent them.
To increase the children’s environmental awareness,
TMHM, together with the children, created flower pots fromused PET bottles and planted seedlings using these pots.

Our Approach (Substances of Concern)
Currently, air pollution by chemical substances has
become a global issue having equal importance as
global warming. As such, countries around the world
are adopting more stringent environmental regulations
each year. How Toyota Industries responds to theseregulations will have a significant impact on the businessactivities we undertake in each country.
Based on this perception, we have been taking aforward-looking approach, anticipating fuel efficiency
and emissions regulations to be enforced by eachcountry and region, and promoting product development
accordingly. In production activities, we have beenworking to reduce emissions of volatile organic
compounds (VOC), which are causal substances ofphotochemical oxidants that generate smog.

Summary VOC Emissions (Production Activities)
FY2020 Results
Emissions per unit of production(non-consolidated/automobile body)36% reduction (vs FY06 level)

FY21 target:

36% reduction(vs FY06 level)

Under the Sixth Plan, we set a target of reducing emission
volume per unit of production for VOC from the automobile
body painting process by 36% from the fiscal 2006 level
and have been striving to reduce VOC emissions. In fiscal
2020, we continued our efforts to increase the recovery rateand enhance the maintenance and management of thinner.
Consequently, we were able to cut down emission volume
per unit of production in fiscal 2020 by 36%.

Environmental Management
Toyota Industries proactively engages in initiatives to reduce environmental risk and discloses various
environmental information.

	Status of Compliance with Environmental
Laws
Environmental education to children provided in cooperation with an NPO

	TMHMF’s Initiative for the Conservation of
Biodiversity
Toyota Material Handling Manufacturing France SAS(TMHMF), a subsidiary manufacturing materials handlingequipment in France, has been conducting activities tocontribute to the conservation of biodiversity.
In September 2019, TMHMF set up an eco-farm andstarted raising Ouessant, an endangered sheep breed.
The farm is protecting the rare breed while saving energy
for operating mowing machines by letting the sheep grazeon the grass. The farm also provides a petting zone for
employees, which has served to raise their awareness of
biodiversity and increase communication among them.
As another effort to conserve biodiversity, TMHMF held aphoto contest on the theme of biodiversity in June 2019.

With an eye to minimizing environmental risks to local
communities, the Toyota Industries Group is striving toprevent violations of environment-related laws. Such initiatives
include taking measures against the recurrence of potentiallyserious near-accidents that may result in legal violations andperforming environmental risk inspections at its plants.
In fiscal 2020, there was one case of violation of airrelated laws at one of our consolidated subsidiaries outside
Japan. We have thoroughly implemented necessary
countermeasures and shared relevant information within
Toyota Industries and with other Group companies to preventa similar incidence throughout the Group.

	Soil and Groundwater Pollution
Countermeasures
Toyota Industries carries out surveys and purification ofsoil and groundwater contaminated from the past use oftrichloroethylene and other substances of concern. We
regularly 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 and oils, we have drilled observation
wells at all plants to conduct regular checks.

	Conducting Environmental Risk Inspections
at Consolidated Subsidiaries in Japan
Ouessant, an endangered sheep breed

Photo contest
on the theme of biodiversity

In addition to our own production bases, we are promoting
activities to reduce environmental risks at our manufacturingsubsidiaries in Japan.

We again conducted genchi genbutsu (go and see foryourself) environmental risk inspections at such subsidiaries
in fiscal 2020 to check facilities on their premises, theboundaries of their premises, discharge outlets and waste
storage sites and confirmed that they were managed well.
We will continue to monitor the status of their responses
to the identified issues and conduct risk inspections at our
subsidiaries on an ongoing basis.

	Responding to More Stringent
Environmental Regulations in China
Toyota Industries’ production bases in China manufacture
various products, including materials handling equipment, carair-conditioning compressors and foundry parts.
In recent years, China has been making frequent revisions
to its environmental laws on air and water quality, tightening
regulations with each revision. We regard a violation of theseenvironmental laws as a business continuity risk to the
Toyota Industries Group, as it may entail the suspension of
production or other penalties, which in turn will directly leadto a disruption of our supply chain and damage our brandimage.
In order to ensure compliance with environmental laws at
our bases in China, in September 2019 we started reinforcing
environmental management and support in the country, with
Toyota Industries Management (China) Co., Ltd. (TIMC) taking
the lead.
Specific efforts include providing updates on revisions
to environmental laws, checking the status of compliance ateach base and providing support for improvement. We will
also promote mutual improvement by sharing information andencouraging communication among the bases.

65

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

In December 2019, we held an environmental liaison
meeting of the Toyota Industries Group’s bases in China
at Toyota Industry (Kunshan) Co., Ltd. (TIK). During themeeting, environmental officers from these bases and Toyota
Industries shared the Group’s environmental action policy inChina, gave briefings on the latest updates on the country’s
legal trends and exchanged views. As part of this meeting, an
on-site inspection was also conducted at TIK.
We will continue tocarry out appropriate
environmental management
and support so as toensure compliance withenvironmental laws andreduce any businessOn-site inspection conducted
continuity risk at our bases
as part of the liaison meeting in China
in China.

autonomous activities of each company.
We will augment our environmental management byextending the scope of RISE and further solidifying our supply
chain network.
Environmental Data Aggregation System

ReportingdataCollecting
information

Aggregating
data

Environment-related
departments of Toyota Industries	Partnering with WIPO GREEN
We became a partner of WIPO GREEN, a marketplace
to spur innovation and diffusion of green technology.
The platform is run by the World Intellectual Property
Organization (WIPO), a specialized agency of the United
Nations, to support global efforts to achieve the Sustainable
Development Goals (SDGs).
As a WIPO GREEN partner, we have registered in the
database patents for our plastic glazing (PG) that contributes
to higher fuel efficiency through the reduction of vehicle
weight, carbon fiber reinforced plastic (CFRP) and solar
heat collection tube used in thegeneration of renewable energy.
We will continue to moveahead with our efforts related
to environmental products andtechnologies and contribute to therealization of a sustainable society.

	Leveraging IT to Augment Environmental
Management
With the dual aims of improving environmental performanceassociated with business activities and fulfilling our
information disclosure responsibility, the Toyota Industries
Group has been collecting environmental data of Toyota
Industries and its consolidated subsidiaries in and outside
Japan. In fiscal 2020, we introduced an environmental data
aggregation system to raise the efficiency of data collection
and the accuracy of the collected data. We call the systemby the nickname RISE (Reporting system for Improvementin Sustainability Engagement). The name embraces ouraspiration to contribute to a sustainable society and reinforce
our environmental response.
The use of RISE to centrally manage the environmental
data of Group companies
has enabled us to accurately
identify the environmental
impact and trends in theentire Toyota Industries
Group. The promotionof information sharing
throughout the Group has
Briefing session for consolidated
subsidiaries
also led to more active,

66

Toyota Industries Report 2020

Providinginformation

	Verification by a Third Party
Toyota Industries obtains third party verification in order toincrease the credibility of its data on energy-derived CO2
emissions, waste generation volume, water consumption andwastewater discharge.
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.
Details of verification and theverification statement of thethird party organization areavailable at our Website.

Web
Link to details andverification statement.

	External Evaluations of Toyota Industries’
Environmental Activities
External Environmental Evaluations
Toyota Industries fosters environmental communication with
our stakeholders through proactive disclosure of environmental
information.
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.

Selected as an A-List
Company in CDP Survey
on Climate Change for Two
Consecutive Years
Toyota Industries was selected for
the A List for two consecutive years
in a survey conducted by CDP on climate change
as a company making especially outstanding efforts
to reduce greenhouse gas emissions and mitigate
climate change. The Toyota Industries Group definedits aspirations in 2050 in March 2016, and based onthese aspirations, formulated the Sixth Environmental
Action Plan, a five-year plan for the period from fiscal
2017 to fiscal 2021. Our proactive activities under
the plan, particularly the tandem efforts to develop
products with high environmental performance andreduce CO2 emissions from production activities, haveresulted in the selection.
We will continue to tackle climate change as
one of our important tasks and contribute to therealization of a sustainable society through our global
environmental conservation activities.

External Environmental Awards
Toyota Industries’ environmental activities to date have beenhighly acclaimed by external organizations.

Won a Minister of Economy,
Trade and Industry Award in
the 2019 Energy Conservation
Grand Prize
A project of the Nagakusa Plant in Aichi
Prefecture to save energy in the drying
process of vehicle painting won a
Minister of Economy, Trade andIndustry (METI) Award in the Industrial
Field, which is the highest level award
in the 2019 Energy Conservation Grand Prize
program (Best Practice Category) run by the Energy
Conservation Center, Japan. This award program
recognizes outstanding energy-saving products andenergy-saving efforts of business operators orbusiness sites. It was the first METI Award Toyota
Industries has received under the program.

List of External Environmental Evaluations

Evaluation organizations

Fiscal 2020

CDP climate changeA

CDP water security

A-

Raymond Winning a Green Supply Chain
AwardIn December 2019, The Raymond Corporation,a subsidiary manufacturing materials handlingequipment in North America, received a Green Supply
Chain Award from Supply & Demand Chain Executive
magazine. The award recognizes companies making
sustainability a core part of their corporate strategy
and carrying out environmental activities. Raymondreceived the award for its efforts to save energy byvisualizing energy consumption and automaticallyshutting down air conditioners when not needed, as
well as efforts to reduce water consumption, reusewater and recycle packaging
materials.
Raymond will proceedwith process improvements
throughout its businessactivities toward therealization of a sustainable
society.

TO P IC

EcoVadis*
TMHE Group Receiving the Highest“Platinum” Rating
Toyota Material Handling Europe AB (TMHE), a
consolidated subsidiary overseeing the materials
handling equipment business in Europe, received
the highest “Platinum” rating from EcoVadis in
its corporate sustainability survey. The ratingcorresponds to the top 1% group of the companies
that have been evaluated.
The TMHE Group has formulated an energy
policy to achieve zero energy muda and has been
engaging in activities based on high sustainability
targets. The Group has been making outstanding
progress, with one of its manufacturing companies
achieving a zero CO2 emissions plant in 2019. (See
Special Feature on the Environment on pages 56–57
for details.) The rating was given in recognition of suchexcellent performance and transparency in information
disclosure. TMHE willcontinue to undertake
business activities
and provide products
and services in asustainability-conscious
manner.
* An international organization that
evaluates the sustainability ofsupply chain companies

Members of the Production Engineering Departmentin the Vehicle Division67