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Toyota Industries in Focus

Harmonious Coexistence with theEnvironment and Local Communities
Environmental Protection Activities
Basic Principle
Acutely aware that global environmental problems could
jeopardize the survival of humankind, Toyota Industries has
designated environmental soundness as a key medium- to longterm management priority. Our basic corporate principle statesthat “Toyota Industries believes that economic growth andconservation of the natural environment are compatible. It strives
to offer products and services that are clean, safe and of highquality.” In keeping with the spirit of this principle, Toyota

Industries has been proactively engaged in the protection of theenvironment.

Corporate Commitment to the Environment
In January 2003, we introduced the Toyota Industries Group
Corporate Commitment to the Environment. This declaration
highlights Toyota Industries’ firm resolve to fulfill its corporate
responsibilities to society and to reinforce its environmental
protection activities.

Toyota Industries Group Corporate Commitment to the Environment
Toyota Industries carries out its everyday businessactivities to contribute to global economic development
and enhance the quality of life through its products andservices. In all our business activities, we always consider
environmental issues throughout the entire lifecycles of ourproducts. In aiming for a balance between environmental
protection and economic development, we havedesignated “sustainable management” as an issue of thehighest priority, as all Toyota Industries employees
combine their efforts to tackle environmental issues.

Global VisionCorporate Commitment

Collaborate with local communities
and global society in addressing
environmental protection.

2. The Toyota Industries Group will develop and provide
products and services with top-level environmental
performance.

Harmony

3. The Toyota Industries Group will conduct production
activities, in a manner that takes into account preventionof global warming, effective applications of energy andresources, and reduction of substances ofenvironmental concern.

Sustainable
Management
Improvement

Improve eco-efficiency for
all our business activities,products and services.

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1. The Toyota Industries Group will strive for further
reduction of environmental impact, as well ascompliance with environmental laws and regulations.

Responsibility

Fulfill our social
responsibility ofenvironmental protection.

ANNUAL REPORT 2004 — TOYOTA INDUSTRIES CORPORATION

4. The Toyota Industries Group will communicate closelywith a wide range of stakeholders, including its
customers and shareholders, and continually improve its
system of “sustainable management.”
5. The Toyota Industries Group will actively address
various environmental issues in local communities andglobal society as a good corporate citizen.

Environmental Committee
Chaired by the President

Product Technology
Subcommittee

EnergySubcommittee

Pollution Prevention
Subcommittee

Waste Minimization
Subcommittee• Development ofenvironment-friendlyproducts• Facilitation of productrecycling• Promotion of life cycle
assessment (LCA)
system• Proposal of plans forincreasing energy
efficiency and relatedactivities• Promotion of pollutionprevention activities• Management ofhazardous substances• Management andphase-out of materials
that impose a burden
on the environment• Preparation andpromotion of activities
that reduce wastevolumes• Promotion of reuse ofmaterials

Toyota Industries in Focus

In-House Organization for Environmental Activities

Plant Environmental Committee(at each plant)

Third Environmental Action Plan
Toyota Industries has been systematically involved in a diverse
range of environmental protection activities since formulating its
First Environmental Action Plan in 1993. In 1996, we revised thisaction plan and launched the Second Environmental Action Plan.
Having virtually attained our targets, we re-evaluated all aspectsof the second plan and in August 2000 introduced the Third
Five-Year Environmental Action Plan (April 2001 - March 2006).
We continue to work toward attaining the objectives of this plan.
With respect to specific numerical targets, by the end ofMarch 2006 we aim to reduce our volume of CO2 emissions by5% compared with the fiscal 1991 level (and achieve a 10%reduction by the end of March 2011, using the same fiscal 1991
level as the comparison), and by the end of March 2006 weintend to reduce total emissions of PRTR (Pollutant Release andTransfer Register) substances as designated by the Ministry of
the Environment by 50% compared with fiscal 1999 levels.

Commitment to the Environment, we are currently examining
additional ways to strengthen our environmental approach.

Complying with International Environmental
Standards
Toyota Industries is making vigorous efforts to obtain ISO14001
certification in line with plans to establish a company-wide
environmental management system and fulfill its corporate
responsibilities for global environmental protection. All production
plants of the Company had obtained ISO14001 as of March
2003. Most of our major domestic subsidiaries and affiliates havealso received this certification while others are making
preparations to do so.
Overseas, our principal manufacturing bases, including
MACI, TIEM, TIESA, TIK, KTTM and TDDK, have been certified.
Several production bases of the BT Industries Group have also
received this certification. We are working to obtain certification
at all companies in the Toyota Industries Group.

In-House Organization for Environmental
Activities

Environmental Accounting

Determined to address environmental issues in an organized andsystematic manner, Toyota Industries has established theEnvironmental Committee, chaired by the President. Thecommittee has four specialized subcommittees. In addition, eachplant has organized its own Plant Environmental Committee andspecialized subcommittees for addressing individual
manufacturing issues.
We have placed top priority on establishing anencompassing organizational framework to uniformly andefficiently manage and promote the environmental activities
carried out individually by Toyota Industries Corporation and its
subsidiaries. To augment the Toyota Industries Group Corporate

Today, there are a growing number of environmental issues.
Accordingly, accurate analysis of the costs and effectiveness ofenvironmental investment has become increasingly important for
management decision-making and information disclosure toinvestors and shareholders. There are currently no uniform
international standards on the scope and definition ofenvironmental costs. However, using guidelines (2002 edition)prescribed by the Japanese Ministry of the Environment, theCompany has formulated its own internal standards for calculating
the cost effectiveness of environmental protection investments
and the cost efficiency of our environmental activities. Please see
our Social & Environmental Report for details.

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Toyota Industries in Focus

Social Contribution Activities
Fundamental Thinking
While striving for sustained corporate growth, Toyota Industries
works to fulfill its role as a good corporate citizen to contribute to
the betterment of local communities that provide the foundationfor our corporate activities and employees’ lives. As part of theseefforts, Toyota Industries cooperates closely with local
communities to carry out an assortment of activities that
contribute to society. We also enthusiastically support volunteer
activities by employees.

Support for Employees’ Volunteer Activities
Toyota Industries set up the Heartful Club as an organization forsupporting volunteer activities by employees. The club provides
registered members with information about volunteering, solicits
volunteers and encourages employee participation in suchvolunteer activities as social welfare and environmental
protection events.

Communicating about Environmental
Protection and Social Contribution Activities
Toyota Industries publishes the Social & Environmental Report, asummary of our approach toward and the achievements of ourenvironmental protection
and social contribution
activities. Until 2003, we
published a report that
Social & Environmental Report2004
contained information
mainly on our environmental
protection activities. From
2004, however, we added
information about our social
contribution activities andre-christened thepublication as the Social &Environmental Report. To
obtain a copy of our Social& Environmental Report, see
the contact information
Social & Environmental Reportlisted on the last page ofthis annual report. The
contents of the Social & Environmental Report, together withdetails of our recent environmental protection and social
contribution activities, are also available on our Web site(http://www.toyota-industries.com).
Through our Web site and Social & Environmental Report,
Toyota Industries proactively discloses information tostakeholders about how it fulfills its social responsibilities.

Employees volunteer for cleanup activities along the coastline nearproduction plants.

Sponsoring Social Welfare and Cultural
EventsWe provide broad-ranging support for social welfare and cultural
events, mainly in regions near our headquarters and production
bases. This includes supporting events for disabled children andchildren orphaned by traffic accidents. We also support concerts
as part of our cultural support activities.

http://www.toyota-industries.com/environment/

At the “Public Welfare Communication Festival,” we invite physicallyhandicapped children living near our head office to our company
facilities.

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ANNUAL REPORT 2004 — TOYOTA INDUSTRIES CORPORATION