Company Introduction

Strategies and Businesses Promotion of ESG Initiatives
Relationship with Our Stakeholders

Relationship with Our Stakeholders
Relationship with Our Customers ————— P44–45

Relationship with Our Business Partners ———— P46

Relationship with Our Associates ————— P48–52

Relationship with Our Local Communities —— P53–54

Relationship with Our Shareholders and Investors — P47

Relationship with Our Customers
Regarding quality as one of its material issues, Toyota Industries practices monozukuri (manufacturing) thatquickly responds to the diverse, ever-changing needs of customers.

	“A product should never be sold unless it
has been carefully manufactured and fully
tested in the commercial trial, withcompletely satisfactory results.”

Carrying on the spirit of founder Sakichi Toyoda, Toyota
Industries strongly believes that quality is the lifeblood of acompany. Focusing on quality as one of our material issues
and ensuring customer safety and reassurance are our mostimportant responsibilities to our customers and form thebasis of our approach to CSR.
Toyota Industries strives to maintain and improve thetotal quality of our corporate activities, which encompasses
not only “product quality” but also “marketing quality” and“management quality.” “Product quality” is embodied in
the safety, eco-friendliness, durability, ease of use andworkmanship of our products, while “marketing quality”
entails excellent sales and service in addition to these
attributes and “management quality” further enhances ouroverall corporate image and brand strength in terms of all ofthese attributes.
Types of Quality Sought by Toyota Industries

ent
em
nag
it y
g
Ma lity
ual
q
turin
qua
ufac
ting
Man lity
r ke
Ma
qua

Quality levels that
customers truly
expectProduct quality●Safety●Eco-friendliness●Durability●Ease of use

Designquality●Brand strength●Corporate image●Sales●Service

Manufacturing capabilities

Toyota Industries undertakes product development thatmeets customer expectations by capturing market needs
and understanding how our products are actually used bycustomers.
At Toyota Industries, development of a new productentails defining specific goals to incorporate quality in every
stage from product planning and design to production
preparation, production, sales and after-sales services. We
perform a design review (DR), which allows a product toproceed to the next stage only when a responsible businessToyota Industries Report 2020

	Quality Assurance Activities based on the
Quality Guidelines
Quality forms the basis of our operations. As such, weformulated our Quality Vision, which defines our philosophy inensuring quality.
Quality Vision
Each and every member of the Toyota Industries Groupmakes sure to build in quality with ownership (Jikotei
Kanketsu) at their own workplaces and positions to supply
appealing products/services that exceed the expectations ofcustomers around the world with safe and reliable quality.

To achieve the goal of this vision, we issue the Quality
Guidelines, which identify priority quality-related issues tobe implemented in each fiscal year, to all production basesin and outside Japan and engage in quality assurance
activities accordingly. The implementation status of theseguidelines is reviewed by top management at the Quality
Functional Meeting chaired by the head of the Production
Headquarters*1 for identifying additional issues and devisingcountermeasures. Issues raised are followed up at meetingsof the Company-wide Council of Heads of Quality Assurance
Departments chaired by the head of the Quality Control
Department*1.
*1: As of March 31, 2020

Quality Assurance Activities based on the Quality Guidelines

	“Every one of us should fulfill the roles
assigned to us and deliver our best quality
products to customers.”

44

division head examines and approves whether the producthas reached the target quality level.

●Logistics●Workmanship

Checking and identifying issues ofCompany-wide quality status and progressin implementing the guidelines

Implementing
Company-wide
guidelines

Quality Functional Meeting

Quality Vision
Quality roadmap

Company-wide Council of Heads of
Quality Assurance Departments

A

P
PDCA*2cycle

Quality Guidelines

D

C
Quality assurance activities atall bases in and outside Japan

Quality Guideline 1
Quality Guideline 2
Quality assurance in Quality assurance inproduct development
mass production*2: PDCA (Plan, Do, Check, Act)

Corporate Information

Quality Guideline 3
Quality assurance atbusiness partners

Quality Guideline 4
Human resources/
workplace development

	Preventing Occurrence and Recurrence ofDefects
If a defect is found in a product after its launch, the Quality
Assurance Department of the responsible business division
takes the lead in examining and identifying the cause bygoing back to its development, design and production
processes. We implement countermeasures both from theprocess and technological aspects and revise our new
product development process as necessary. Through thesemeasures, we strive to thoroughly avoid the recurrence of thedefect in subsequent models.
Additionally, we make efforts to prevent the occurrenceof defects in all products we develop and manufacture in the
future. As an example, we provide education to production
bases in and outside Japan with an eye to preventing defects
by improving work procedures and processes.

TO P I C

Toyota Industries’ five QC circles won a gold prize at
the International Convention on QC Circles in 2019,
in which a total of 370 circles participated from 16
countries around the world. As an example, theproject of Kirloskar Toyota Textile Machinery Pvt. Ltd.
(KTTM), a subsidiary manufacturing textile machineryin India, was recognized for its genchi genbutsu
and data-based improvement of the productivityof processing lines, which also resulted in personal
growth of the project members.

Providing Support to Business Partners
Since improving the quality of our products requires
concerted efforts with our business partners in and outside
Japan, we are strengthening joint quality assurance activities
with major business partners.
In each annual quality audit, we determine priority
areas, conduct genchi genbutsu (go and see for yourself)
inspections to confirm the improvement status of thepreviously identified deficiencies and provide quality
education on items that should be reinforced in order tocultivate a deeper understanding of kaizen (improvement).
To foster voluntary quality improvement efforts of business
partners, we have introduced a self-audit system, in whichbusiness partners satisfying our criteria perform in-house
quality audits and autonomously improve their quality
assurance systems. In fiscal 2020, we again provided
education to nurture next-generation quality leaders as partof our ongoing efforts for human resources development at
business partners.
These activities enable our business partners to attain thelevel of quality assurance required and establish a culture tofoster quality assurance on their own.

	Promoting Human Resources andWorkplace Development
Toyota Industries provides systematic quality education to
all employees to help them acquire quality assurance skills
needed in actual operations. We have been soliciting creative
proposals to nurture human resources who think and act on
their own and create a better workplace through all-employee
kaizen activities, while at the same time promoting thedevelopment of human resources who can take a scientificapproach to quality assurance through quality control (QC)
circle activities and by using statistical quality control (SQC)*3
techniques and big data analysis.
To date, we have received 15 awards for employees’
creative ideas in the Creativity category in the Commendationfor Science and Technology by Japan’s Minister of Education,
Culture, Sports, Science and Technology. We have alsopresented the results of our QC circle activities at QC circle
conventions both internally and externally and received
multiple awards for our accomplishments.
Our production bases outside Japan also promote kaizen
efforts and human resources development through QC circle
activities. We help them undertake independent activities

Members receiving a gold prizeat the International Convention on QC Circles

by training QC circle instructors. As a venue for presenting
activity results, we hold the Global QC Circle Convention
every year since 2015 and provide workshop sessions toraise skills.
As for nurturing human resources who can take ascientific approach, we launched a new program to provide
basic education on big data analysis in addition to theexisting SQC education. With a particular focus on practicalapplication, we designed an original curriculum and textbook
while keeping a balance between theory and practice. In thenext five years, we will educate more than 1,000 engineers
and simultaneously nurture core human resources in thisarea. Our ultimate goal is for all our engineers to possess
basic knowledge on big data analysis so that they can solve
problems using this technique.
As described above, to reinforce our foundation for quality
assurance, we are promoting the development of humanresources and an open workplace based on the belief that
manufacturing starts with nurturing excellent personnel.
*3: Using statistical techniques to promote quality control and process improvements

Class providing basic education on big data analysis

45Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

Relationship with Our Business Partners

Relationship with Our Shareholders and Investors

Toyota Industries encourages open procurement and seeks co-existence and co-prosperity with our business
partners (suppliers) based on mutual trust. We also facilitate environmentally preferable purchasing, humanresources development, fair trade, disaster prevention activities for a possible major earthquake and otherdisasters and more efficient purchasing.

	Fair and Equitable Business Transactions
based on an Open Door Policy
We provide fair and equal opportunities to all potential
business partners. We comprehensively evaluate ourbusiness partners based on such factors as quality, price,adherence to delivery times, technological capabilities andmanagement information. We also assess their initiatives forsafety, the environment and compliance as we strive for thetimely and stable procurement of excellent products at lower
costs based on fair business transactions.

	Co-Existence and Co-Prosperity based on
Mutual Trust
We work hard to realize co-existence and co-prosperity withour business partners based on mutual trust. Every year, wehold procurement policy meetings and top manager seminars
for major business partners to facilitate mutual understanding
and cooperation. In addition, we provide such programs as
quality control and technical skills training, guidance directed
toward kaizen at their production sites and safety and healtheducation throughout the year.

	Reducing Environmental Impact throughEnvironmentally Preferable Purchasing
We aim to procure parts, raw materials and equipmentfrom business partners that give
sufficient consideration to theenvironment.
In the sixth edition of ourEnvironmentally Preferable
Purchasing Guidelines, we added
the aspirations in 2050 of ourEnvironmental Vision. Accordingly,
we have been strengthening
environmental managementin our entire supply chain andundertaking relevant initiatives
Environmentally Preferable
throughout the product lifecycle.

Purchasing Guidelines

Please visit our Website for detailsof our Environmentally Preferable
Purchasing Guidelines.

Web
Link to the guidelines.

	Promoting Human Resources Development
We proactively provide education to enhance procurement
knowledge both internally and externally. In fiscal 2020,
we again provided training on risk management, including
education on Japan’s Subcontracting Law, response to labor
issues that are closely related to their daily operations and46

Toyota Industries Report 2020

appropriate sale of waste. These seminars were attended
by participants from affiliated companies and Hoeikai, anorganization consisting of our business partners. We also
work with Hoeikai to provide support to strengthen the
management platforms of member companies throughToyota Production System (TPS) activities in manufacturing
and QC circle activities.
Participants of Purchasing-Related Seminars(Persons)

Risk management

Affiliated companies

Hoeikai

Subcontracting Law

Toyota Industries

Affiliated companies

1,200	Basic Perspective
Toyota Industries continually carries out timely, appropriate
and fair information disclosure for shareholders and investors.
In this way, we raise management transparency so that we
obtain an appropriate company valuation in stock markets.
We proactively provide not only information required under
disclosure laws and regulations but also information on ourmanagement policy and business activities. Also, we engage
in various investor relations activities to facilitate productive
dialogue with shareholders and investors.

General Shareholders’ Meeting

1,000
800
600
400
200
0

We aim to obtain an appropriate company valuation in stock markets through timely, appropriate and fair
information disclosure while promoting good communications with shareholders and investors.

(FY) 16

17

18

19

20

	Realizing Fair Trade throughout the Supply
Chain
As part of efforts to realize fair trade throughout the supply
chain, Japan’s Ministry of Economy, Trade and Industry has
announced an action plan for proper management of molds
for parts. In response, Toyota Industries has set up a moldmanagement project and examined how we can “reducemolds, revise management and establish new systems” asstipulated in the action plan. In fiscal 2020, we laid down
clear rules for mold management and shared them with ourbusiness partners, thereby completing our work concerning
the action plan.

	Business Continuity Plan (BCP) Activities
In further promoting our BCP activities, we are making
concerted efforts with business partners to reduce
associated risks by implementing specific measures. In fiscal
2020, to deal with frequent natural disasters in recent years,
we extended the scope of our IT system-based damage
assessment from earthquakes to other natural disasters. We
will also identify business partners with flood risk based on
hazard maps and take action accordingly.
In the face of the spread of COVID-19, we have also
started implementing measures against infectious diseases inorder to reduce supply risks in our supply chain caused by anexcessive concentration of production at a specific site.

We hold our annual general shareholders’ meeting early
to avoid the date on which many companies hold theirrespective shareholders’ meetings so that more shareholders
can attend. We are further facilitating the exercise of voting
rights of our shareholders by allowing them to exercise suchrights via the Internet and by joining the electronic voting
platform for institutional investors.
We held our 141st General Shareholders’ Meeting on
June 11, 2019, in which 483 shareholders participated.
Following the general shareholders’ meeting, we invited
our shareholders for a tour of a plant that manufactures ourmainstay lift trucks and a tour of the Toyota Commemorative
Museum of Industry and Technology established as a joint
project of the Toyota Group to foster a better understandingof our business activities.

Investor Relations Activities
At the financial results briefing, we mainly explained our
newly formulated Vision 2030 and our recent focus on the
Logistics Solutions Business and electrification efforts. In
addition to accepting individual interviews with analysts andothers, we hosted an information session for our electriccompressor business. The session included a tour of a plantas an opportunity to promote a deeper understanding of ourstrengths in the development and production fields.
As for institutional investors outside Japan, we visit major
investors to explain our management policies and growthstrategies. We also participate in conferences hosted inJapan by securities companies and hold individual meetings.
Our Website provides our corporate history, overviews ofeach business as well as product information and initiatives
to develop technologies for the future mainly for individual
investors.
Opinions and requests we collect through various meansof communications with shareholders and investors are fed
back to executives and relevant business divisions via theBoard of Directors and various committees to reflect them inour future business activities.

Major Investor Relations Activities
For institutional investors and securities analysts in Japan•Quarterly financial results briefings •Individual interviews/visits•Small meetings •Teleconferencing •Business information sessions•Facility tours •Issuing/delivering Toyota Industries Reports

For institutional investors outside Japan•Individual interviews/visits •Teleconferencing•Participation in conferences hosted by securities companies•Issuing/delivering Toyota Industries Reports

For individual shareholders and investors•Company-hosted plant tours•Issuing/delivering notice of general shareholders’ meeting•Issuing/delivering business reports

Information session for our electric compressor business (December 2019)

Returning Profits to Shareholders
Toyota Industries regards ensuring shareholder benefits as
one of the most important management policies.
Accordingly, we strive to continue paying dividends atthe consolidated dividend payout ratio of roughly 30% andmeet the expectations of shareholders upon comprehensively
taking into consideration such factors as business results anddemand for funds.
For fiscal 2020, Toyota Industries increased annual cash
dividends by ¥5.0 over the previous fiscal year and paid
annual cash dividends per share of ¥160.0 (interim cash
dividend per share of ¥80.0 and year-end cash dividend
per share of ¥80.0). Given the slowing economy due to the
spread of COVID-19, we made sure to pay the year-end
cash dividend during May 2020 on the basis of the resolutionof the Board of Directors instead of basing our decision on
the resolution of the General Shareholders’ Meetings as we
usually do.

47Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

Notional Image of Activities to Eliminate Heat Strokes
Instill andmaintain
Introduce heatrisk assessment

Our ultimate goal is to create safe and secure workplaces for everyone, where each and every associate can
exercise their diverse potentials and play active roles.

Raise
awareness	Building a Safety-Oriented Culture That
Aims for Zero Industrial Accidents
In accordance with our fundamental policy of “fostering safe,
healthy and pleasant workplaces,” Toyota Industries strives
to prevent industrial accidents and occupational disorders
as well as realize better work environments by making
equipment more immune to accidents or disorders as early
as in their design stage.
In fiscal 2020, we continued to promote primarily safety
and health measures from human, object and administrative
standpoints based on risk assessment.
The analysis results of past accidents and interviews
with plant personnel revealed that many operators lacked
sufficient awareness of hazard sources and conditions. Asan effort to increase their individual consciousness for latenthazards in the workplace, we added hazard-related mattersto which they should pay attention into their routinely used
workplace reports of industrial accidents and potentiallyserious near-accidents as well as reports of risk prediction
activities.
With the aim of identifying all risks associated withancillary facilities and logistics during production preparations,
we conducted interviews with each workplace to checkissues they have encountered in conducting risk assessment.
Based on the results, we created and distributed manuals
and guidelines matched to actual operations to make surethat risks are identified and reduced.

for operators to use. As a specific effort, we will design acircuit configuration that completely shuts down a machineby cutting off its power when an operator accesses themachine while disabling its safety device to extract a productin production processes. This circuit configuration will beincorporated in new equipment we will install in the future. We
are also retrofitting a power shut-down feature to our existing
equipment. Until we complete the modification, we willprotect the safety of operators through periodic equipment
checkups.
In the wake of the accident, we will instill the safety first
approach firmly in all associates in seeking to establish asafety-oriented culture that aims for zero industrial accidents
within the Toyota Industries Group.
Frequency Rate of Lost Workday Injuries(%)
1.60
Manufacturing industry

1.20

0.80

Manufacturers of transportation
machinery and equipment

0.40
Toyota Industries
Good

0.00
(FY) 16

17

18

19

20

Source: Survey on Industrial Accidents, Japan’s Ministry of Health, Labour and Welfare	Promoting Activities to Reduce Heat Strokes

Genchi genbutsu education

Genchi genbutsu logistics risk
assessment

In spite of all these efforts, an associate got caught in amachine in a fatal accident at the Higashichita Plant in Aichi
Prefecture on December 6, 2019.
We recognized it was a grave situation that seriously
threatens our corporate foundation. For never repeatingsuch an accident in the future, we made efforts to identify
deficiencies and took measures to prevent recurrence.
Specifically, we conducted a full inspection of similar
machines and operations at all our plants and affiliatedcompanies around the world and added physical measures
to the machines themselves to counter the identified
deficiencies.
In order to establish a process to install equipment ina manner to ensure and maintain its safety, we formed
the Study Group for Intrinsic Equipment Safety led by
the production engineering departments to promote theintroduction of machinery and equipment that are safe

48

Toyota Industries Report 2020

We introduced heat risk assessment in fiscal 2018. Since
then, we have been improving hot working environments forheat strokes according to the identified risks and adopting
preventive measures. As we expect the trend of unusually
hot summers such as the one in fiscal 2019 to continue
in the future, we are stepping up our efforts to improve
hot environments. We have conducted on-site surveys at
workplaces where cases of heat strokes have occurred toquantitatively define sites requiring immediate action andhave been implementing measures accordingly under atwo-year plan. For workplaces whose operations preclude
the adoption of usual measures, we have devised tailoredmeans, optimized the layout of air conditioners and effectively
reduced the associated risks. Through the implementation of
additional preventive measures, such as providing education
on heat stroke prevention and encouraging a practice bysupervisors to directly hand out hydration drinks to operators,
we successfully eliminated the number of heat stroke cases
in fiscal 2020.
We will continue to raise individual awareness for theprevention of heat strokes and foster a workplace culture thatquickly recognizes and responds to such disorders.

Zero heatstrokesEstablish
behavior
and habits

”
ware
s and
“Soft awarenesre)

al e cultu
dividuc
ase in orkpla(Incre ster a w
fo“Hardware”

Behavior
improvement

muscle, bone and water within the body as well as basal
metabolic expenditure. Using these measurements alongwith the body mass index (BMI) based on height and weight,
which had conventionally served as our only indicator, weplan to capture individual physical conditions in more detailand provide appropriate health guidance.
*1: A tool to measure body composition, including muscle, fat, bone and body water

Major Health Promotion Events in Fiscal 2020
Risk
reduction(Improve hot working environments)

	Initiatives for Health Management andImprovement
As a task for the medium term, we are promoting healthimprovement of associates, mainly focusing on preventionof lifestyle diseases and mental health support activities, tocounter risks associated with aging and greater stress. In
fiscal 2020, we examined and adopted measures to foster
health promotion and maintenance activities by closely
supporting associates.
For prevention of lifestyle diseases, we conduct periodic
age-based health education for all associates. We also
feed back to associates the results of an annual healthcheckup and measurements conducted on the same day,including physical fitness, body fat percentage and amountof fat around internal organs, along with advice to improve
lifestyle habits. This health education is designed to provide
motivation for better health by letting associates think about
their health over the course of the one-day program. In
fiscal 2020, we added nine items to the physical fitness
measurement, which relate to flexibility, agility, bodily balance,
muscle strength and endurance, to provide motivation for
promoting physical fitness. Besides measurement results,
we feed back physical fitness propensity scores andcountermeasures, how physically fitted for work, assessmentof physical fitness age and recommended exercises in order
to raise relevant awareness among associates so that they
can work and take active roles until an older age.

Stop smoking awareness events•World No Tobacco Day: One-day no smoking (May 31)•No Smoking Days: Half-day no smoking (for eight days)
Participants of walking events (held jointly with healthinsurance association)

5,627 persons

As part of mental health support activities, we have inplace a system to offer early consultation through a healthrelated hotline. Other activities include upgrading our selfcare/line-care education to prevent new cases of mental
health problems and operation of a return-to-work support
program for persons on long-term leave for prevention of
relapses. We have successfully achieved positive results
through these activities.
Under the stress check system introduced in fiscal 2017,
we again conducted a check on all associates in fiscal 2020.
As in the previous fiscal year, we fed back the check results
to all participants and workplaces with suggestions for
improvement. We also set up an individual interview with adoctor for those wishing to do so and provided improvement
support as necessary to individual workplaces. As a means
to feed back the results to workplaces, we operate an ITbased workplace check results viewing system that allows
the users to perform a precise search of results and tips for
improvement. In fiscal 2020, we started providing the resultsof associate awareness surveys and related improvementImproving Mental Health Support Systems(Introduced a Stress Check System in Fiscal 2017)
Objective

Workplaces

Individuals

Providing information on mental healthPreventive
measuresAge-based health education

For preventing and ameliorating symptoms of metabolic
syndrome, we provide health promotion guidance toassociates with mild obesity or who are slightly overweight, in
addition to specific health guidance required by the Japanese
government. By doing so, we encourage associates toimprove lifestyle habits early on. In fiscal 2020, as a measure
to support associates’ self-help efforts for health promotion
and maintenance, we expanded the scope of our financial aid
system to include expenses for influenza vaccination, medical
examinations for early detection of diseases, exercises andhealth promotion tools. In fiscal 2021, we will introduce abody composition analyzer*1 to measure amounts of fat,Early
detection/
early
resolution

Improving support via the introduction of a stress check system
Encouraging associates
to be more aware of
their health and offering
advice on healthimprovement measures

Mental health education

Relationship with Our Associates

Interviews aspart ofhealth checks

Preventing
relapsesRaisingawareness ofhealth-related
hotlineUnderstanding thecauses of stress in theworkplace andimproving working
environments<Consultation system> Workplacecheck results• Industrial healthviewing systemstaff (in-house)(also providing the• External institutions results of associateawareness surveys)

Return-to-work supportM ajor Activity Indicators
Activity indicator

FY2018FY2019FY2020Participants of age-based
health education*2
Rate of undergoing a stress
check

2,422
persons

2,470
persons

2,357
persons

97%

99%

99%

*2: Temporarily suspended from March 2020 for prevention of COVID-19

49

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

Toyota Industries is promoting measures for prevention of
COVID-19 by formulating a response manual based on
the Japanese government’s and other related guidelines.
We encourage all associates to take seven measures suchas checking body temperature every morning, frequent
hand washing and following proper cough etiquette. Each
workplace is also striving to cut back person-to-person
contact by promoting working from home and online meetings
as well as eliminating non-urgent business trips. We have alsoestablished a system to prevent the spread of infection should
an associate get infected or become suspected of infection.
Outside Japan, we are undertaking business activities while
thoroughly implementing infection prevention measures as per
the instruction of the government of each country.
We will continue to take necessary preventive measures
matching to the conditions of each company and strive tocreate workplaces where associates feel safe to work.

	Enhancing Team Strength
Toyota Industries believes
Management Skills
that it is essential to
Technical Skills
QC, SQC, etc.
Expertise/skills/know-how
enhance team strength
Ability to identify andresolve issues
so that each associate
Ability to merge multiple
Team
Strengthlevels of skill
can work with vitality
Leadershipand the Company can
To pursue improvements
thoroughly and continuously
achieve sustainablegrowth.
Spirit of Harmony
Teamwork
We believe that team
Well-roundedhumanitystrength is made up of“technical skills” thatform the basis of manufacturing, R&D and other productionrelated operations, “management skills” to make maximum
use of technical skills and a “spirit of harmony” that supports
both. While further enhancing our team strength, we are
striving to extend and hand it down beyond all businessdomains, generations and geographic regions.

[Technical Skills]
To develop skills to support manufacturing, the Technical
Learning Center, one of our training functions, plays thecentral role in associate education, offering basic skills
training at the Technical Training School and facilitating
efforts to enhance the skills of young technical staff throughin-house skills contests. We also work to cultivate highly
skilled specialists through participation in the national andinternational skills competitions.
At the 57th National Skills Competition*3 held in 2019,in addition to receiving prizes in various other categories the
Toyota Industries team won a gold medal in the “electricalwelding” category, silver medals in the “structural ironsmith”

50

Toyota Industries Report 2020

Initiatives for Promoting Active Roles of Female Associates

Phase 1

Shoma Kamiya, who won the gold medal
at the 57th National Skills Competition*3: S kills competition for determining
Japan’s top young engineersNumber of Medals Won at the National Skills Competition
FY2016FY2017FY2018FY2019FY2020Gold medal

1

1

1

0

1

Silver medal

2

3

4

0

2

Bronze medal

3

1

1

3

2

Total

6

5

6

3

5

Phase 2Phase 3

Establishing and enhancing work- Cultivating a culture to encourage
life balance support systems
more active roles
to instill related practices

Undertaking initiatives to promote even greater roles

2002 —

2015 —

Promoting active roles

Efforts for Prevention of COVID-19

and “mechatronics”
categories and bronze
medals in the “mechanicalengineering design –CAD” and “structuralironsmith” categories,
thereby attaining medals
for the 19th consecutive
competition.

Supporting
work-life balanceexamples on the same system, allowing individual workplaces
to analyze their respective conditions from a multifaceted
viewpoint and voluntarily engage in improvement activities.
For these efforts, Toyota Industries was again recognizedin the large enterprise category of the 2020 Certified Healthand Productivity Management Organization Recognition
Program (White 500) jointly promoted by Japan’s Ministry of
Economy, Trade and Industry and the Nippon Kenko Kaigi.
We will continue to undertake activities to promote bothmental and physical health.

2008 —

Cultivating a culture• Opening a diversity-related pageon the intranet• Female associate exchange
meetings• Holding lectures

Project to promote more active roles for female
associates in office work and engineering fields
Changing mindsets among managerial staff and across all associates

Career support for female associates
Promoting flexible working practices

Enhancing support systems• Extending the period of child • Introducing a shorter work-hour system for child care
care leave• Introducing a work-at-home system• Introducing a leave system to allow
parental care of children with illnesses• Establishing on-site day care center• Installing delivery lockers• Introducing a “welcome-back” system• Introducing a financial aid systemfor day care costs• Introducing a system of leave
for fertility treatment[Management Skills]
We conduct TICO Business Practices (TIBP) training targeting
managers and associates in office work and engineering
fields, with the aim of mutually sharing the thinking and values
that the Company gives importance to, as well as to enable
our associates to solve problems effectively and efficiently.
TIBP training programs are also provided at affiliatedcompanies around the world in our efforts to raise the level ofmanagement skills throughout the Toyota Industries Group.

[Spirit of Harmony]
We are creating a bright, energetic and caring work
environment that fosters a dynamic workforce and allows
every member to demonstrate his or her capabilities both as
an individual and as a team. We are proactively encouraging
communication not only during work hours but also throughsocial gatherings organized by each workplace, sports days
and summer festivals held by respective business divisions,Group-wide Ekiden long-distance relay races and cheersquads for various sports events held jointly among Toyota
Industries Group companies.

	Establishing Work Environments Where
Diverse Human Resources Can Play Active
Roles
We are implementing a variety of measures to create aworkplace environment that enables a diverse range ofhuman resources to fully exercise their capabilities. These
include helping associates maintain a work-life balance,
promoting active roles of female associates, supporting
the employment of persons with disabilities and creating
an environment in which older associates can work more
actively.

Efforts to Support Work-Life Balance
Since around 2002, we have been setting up various systems
to help associates balance work and family. These include
an on-site day care center; a return-to-work (“welcomeback”) system, which allows associates who have left work
to care for children and family members or to accompany
their spouse for a job transfer to get reinstated under certain
preconditions; a shorter work-hour system for child care;

and a leave system and loan system for fertility treatment.
Through these systems, we provide an environment for
associates to work at Toyota Industries for longer years withpeace of mind.
As an effort to support associates to balance their workand nursing care, we distributed the Handbook for Balancing
Work with Nursing Care to associates aged 40 and above
to help them gain knowledge on nursing care and to createa workplace culture that allows associates to seek advice
easily. We also regularly hold seminars on balancing workwith nursing care for associates and their families and provide
newsletters on nursing careto those who are interested.
As a result of these efforts,
Toyota Industries received“Platinum Kurumin”
certification from the Ministryof Health, Labour andWelfare in August 2019 inrecognition of our excellent
efforts concerning work-lifebalance as well as a “FamilyFriendly Company” award
from the Aichi prefectural
Seminar on balancing work
government in Februarywith nursing care
2020.

Promoting Active Roles of Female Associates
In addition to enhancing various systems to support worklife balance, we have proceeded with the creation of anenvironment that allows female associates to continue
working, and in recent years, augmented our efforts topromote their even greater roles.
In 2015, we set up a project to promote more active roles
for female associates in office work and engineering fields,comprising males and females from different departments.
This project was key for the identification of issues andformulation of policy proposals in promoting active rolesof female associates, which formed the basis for thedevelopment of a Company-wide action plan in clarifying
the initiatives for this project. In carrying out the action plan,we specifically focus on the initiatives to change the mindset
among managers and across all associates, provide career
support for female associates and promote flexible working
practices.
Since fiscal 2017, we have held a seminar for a
cumulative total of more than 1,300 managers who directly
engage in the mentoring and development of associates. In
fiscal 2020, we conducted enlightenment activities to fosterA ction Plan

Implementation
FY2016 – FY2021(1) Launch, message from president(2) Awareness seminar for managerial staff
Changing
mindsets(3) Follow-up on individual development plansamong(4) Getting spouses involved in pre-maternity
managerial
leave seminars
staff and acrossall associates (5) Lectures by male role models(6) Promoting further engagement of maleassociates in child care
(1) Sending associates overseas for training at
an early stage in their careers(2) Career training and interviews for female
assistant managers(Ongoing)(Ongoing)

Career support(3) Role model exchange meetings
for female
associates(4) Early return-to-work support (pre-maternity
leave seminars)(5) Early return-to-work support (financial aid
system for day care costs)(1) Expanding work-at-home options
Promotingflexible working (2) Establishing satellite offices
practices(3) Installing refrigerated delivery lockers
Promoting more active roles of female associates inengineering field

Seminar for managerial staff members

Refrigerated delivery lockers

51Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

an understanding of the environment in which associates,
both male and female, having limited working hours due tonursing care or child care are working. We also worked toraise awareness of human resources development that takes
into account their life events.
In order to create an environment to allow associates
who are balancing work and child/nursing care to work withhigher motivation and pursue career development, we haveenhanced our programs to support the early return to workfrom a break in their career. Efforts include a full-day work-athome system launched in October 2016; pre-maternity leaveseminars started in December 2017 for associates and theirspouses to think about a way of working after returning towork; and a financial aid system for day care costs adopted
in April 2018 for associates working while taking care of
infants younger than one year old.
As a result of these initiatives, the number of female
associates holding the assistant manager or higher position
has doubled from the initial level. In October 2016, wereceived “Eruboshi (“L Star”: L stands for Lady, Labourand Laudable)” certification, which is given to companies
making excellent efforts in promoting female engagement in
the workplace, from Japan’s Ministry of Health, Labour andWelfare. In November 2019, we also received an “Excellent
Company” award from the Aichi prefectural government
under its “Female-Friendly Company” certification program.
We have been making ongoing efforts to improve
workplaces to offer females a wider range of jobs andhigher quality of work, launching new initiatives to promote
active roles of female associates in production operations
and creating a better working environment to enable all
T OPI CNumber of Female Associates Holding Assistant Manager or
Higher Position(Persons)

150

With a view toward creating an enriched and healthy society and ensuring its sustainable growth, we fulfill
our role as a good corporate citizen and actively undertake social contribution activities in every region
where we do business.

100

50

0

	Activities as a Good Corporate Citizen
(FY)

16

17

18

19

20

(As of March 31 of each fiscal year)

Pre-maternity leave seminarassociates working under time constraints to fulfill theirindividual potential.

Employment of Persons with Disabilities
We respect the idea of people with and without disabilities
working together and sharing life and work values. Under thisbasic policy, we continue to employ persons with disabilities
every year. They are assigned to a variety of sections andwork with other members to perform their designated tasks.
In fiscal 2020, the ratio of associates with disabilities on a
non-consolidated basis was 2.41%.
Ratio of Associates with Disabilities (Non-Consolidated)

Promoting More Active Roles of Female
Associates in Engineering Field
We aspire that all associates engaging in production
operations fully work and take active roles until
an older age. In order for female associates to doso, we need to overcome issues of gender-relateddifferences in physical strength and frame as well as
the challenges of working during pregnancy, after
giving birth and while raising children. As a meansof doing so, we formed a Female Working Groupand Job Level Working Group in fiscal 2020. These
groups have been working to review current issues,
identify countermeasures and formulate an action
plan for the next and following fiscal years.

Working group participants

52

Toyota Industries Report 2020

Web

Relationship with Our Local Communities

Based on “Respect for Others” as described in our Basic
Philosophy, we strive to fulfill our role as a good corporate
citizen in every region where we do business and actively
engage in social contribution activities to realize an enriched
and healthy society. In our activities that emphasize social
welfare, youth development, environmental protection andcommunity contribution, we not only provide cooperation andsupport through personnel, facilities, funds and know-how
but also strive to closely connect with participants. To foster
employees’ awareness of their ties to society and raise theirinterest in contributing to society, we make enlightenment
efforts such as sharing information on volunteer activities
and providing venues for volunteer activities that encourage
the participation of all employees. Employee associations*are actively undertaking various activities to contribute to
local communities, mainly in the areas of supporting welfare
facilities and protecting the natural environment.
* Voluntary organizations formed by employees at each job level

	Structure for Promoting Social Contribution
Activities
The CSR Committee deliberates on policies of our social
contribution activities while the Social Contribution Group
within the General Administration Department at the Head
Office takes the initiative in carrying out activities.

(%)
2.5

Link to activities.

M ajor Social Contribution Activities of Toyota Industries andGroup Companies
Theme

Activities

Events to interact with persons with disabilities· “Walk Rally (orienteering),” harvest festival, festival
Support for welfare facilities· Support for charity bazaars at facilities by providing goods
Social· Volunteer work for facility cleanup/repair/pruning/weeding
welfare· Support for sales of products from facilities for persons with disabilities by
providing opportunities to set up stalls· Volunteer listening activities at elderly care facilities
Cooperating in a Soccer Class for Children with Autism or Down
Syndrome (China) (P54)
Support for Youth Invention Clubs· Monozukuri workshops for elementary school children during summer
vacations· Holding handmade kite-flying competitions
Youth· Running craft corners at local events
development
Providing plant-hosted environmental education to elementary school children
Providing monozukuri lessons at school
Holding Mini Concerts at Elementary Schools (P53)
Helping to Distribute School Supplies to Children (U.S.A.) (P54)
Initiatives for forest conservation· Tree thinning activities for conservation of prefecture-owned forests
Environmental· Producing and donating benches that made effective use of thinned wood
protection
Tree-Planting Activities for Creating Rich Forests (P53)
Changing and Reducing Packaging Materials (Netherlands) (P54)
Participation in local traditional event (Mando Festival)
Road cleanup activities in areas around plants
Community Activities to raise awareness for traffic safetycontribution Crime prevention patrols
Cooperating in Local Firefighting Operations and Becoming a “Partnerof Firefighters” (Germany) (P54)
Holding charity concert
Support for international NGO through volunteer activities to collect spoiled
Other
postcards and others
Periodic blood donation drives(Activities without country designation were conducted in Japan.)

2.4
2.3

Activity Examples of Toyota Industries (Japan)

2.2
2.1

Holding Mini Concerts at Elementary Schools

2.00(FY) 16

17

18

19
20
(As of June 1 of each fiscal year)

Creating a Work Environment for Older Associates
In order to enable older associates to work and take activeroles in production operations, we have been focusing on
creating a better, less physically stressful work environment
for them by formulating rules common to all workplaces on
the handling of heavy objects, working posture and otherpractices, as well as by improving processes in productionlines.
In addition, we hold“Seminars for an Active
Life” for associates
reaching the age of 50
and 55 to give them an
opportunity to envision life
and work for the next
Improvement activity
on an engine production line
10 years.

Youth development

With an aspiration to provide children, who are the leaders of the coming age, with an opportunity
to cultivate richness of mind through “real” music, we started inviting violinists, pianists and otherprofessional musicians and organizing mini concerts at elementary schools in fiscal 2011. In fiscal
2020, we held such a concert at seven elementary schools in Aichi Prefecture. At Yoshihama
Elementary School in Takahama City, in particular, we invited a choral group from Latvia, known
as the singing nation, who sung the school song as a surprise gift for the children. More than 500
children were completely immersed in the choir’s beautiful, transparent voices.
Tree-Planting Activities for Creating Rich Forests

The team leader association of Toyota Industries has been
undertaking tree-planting activities since fiscal 2012 with the aimof restoring biodiversity and creating rich forests. In fiscal 2020,
about 130 members and their families planted cedar saplings inHamamatsu, Shizuoka Prefecture. It will take some 50 years forthese saplings to mature, and the participants planted each saplingwith care, hoping for healthy growth.

Environmental protection

Mini concert at an elementary school

 umber of Participants of Social
N
Contribution Activities of
Employee Associations(Persons)
1,500
1,000
500
0

Tree-planting activity
for creating a rich forest(FY) 16

17

18

19

20

Each employee association voluntarily andproactively engages in social contribution
activities, with the number of participantsremaining at a high level every year.

53

Determining CSR Materiality
Activity Examples of Consolidated Subsidiaries (Outside Japan)
China Cooperating in a Soccer Class for Children with Autism or Down Syndrome

Social welfare

Toyota Industries Management (China) Co., Ltd. (TIMC)[Import-export trade, logistics operations within China and operation of distribution centers]

Toyota Material Handling (Shanghai) Co., Ltd. (TMHS)[Sales of materials handling equipment]

Toyota Textile Machinery (Shanghai) Co., Ltd. (TTMS)[Installation, servicing and sales of supply parts of textile machinery]

TIMC, TMHS and TTMS volunteered in a soccer class held to support therehabilitation of children with autism or Down syndrome. During the class, about 20
children enjoyed physical exercise through soccer and experienced the joy of scoringa goal through teamwork. At the end of the event, the three companies donatedstationary goods with the Toyota Material Handling Group logo and bath towels madeby using our air-jet looms.

Participants of a soccer classfor children with autism or Down syndrome

Under the Toyoda Precepts(corporate creed), Toyota Industries
has been pursuing solutions to social
issues and undertaking a broad rangeof businesses since its founding. In
keeping with recent changes in thebusiness environment, we have once
again clarified which social issues
we should tackle as our CSR material
issues, and will work to contribute to
the resolution of these issues.

CSR Materiality

SDGs to Contribute

Mitigation of Global Warming
Contribution to Circular Economy

Resolving Social
Issues throughOur Business

Foundation
Supporting
Our Business
Operations

Creation of Innovative ValuesP roducts and Services Which Contributeto Safety, Security and ComfortM utual Prosperity through Partnerships
with Local Communities
Safe and Healthy Work Environments
Leveraging Diversity and Inclusion
Sustainable Procurement
Compliance and Risk Management

Process to Determine CSR Materiality
U.S.A. Helping to Distribute School Supplies to Children

Youth development

Uster Technologies, Inc. (USTER USA)

1 Identification of Issues Relevant to Toyota Industries

Identifying, among various social issues, the ones relevant to our business activities based on the United
Nations’ 17 Sustainable Development Goals (SDGs) and 169 targets as well as guidelines[Production, sales and after-sales services of quality measurement instruments for fiber, yarn and fabric]

In August 2019, USTER USA participated in the annual “Shoes for School” event
organized by the local NPO Knoxville Area Urban League. The event is conducted withthe aim of supporting children to head back to school and start their academic year
well prepared with new shoes, socks, school supplies and free haircuts. At the event,associates packed and distributed 6,000 pairs of socks donated from an apparel
manufacturer. USTER USA volunteers were grateful to be part of the local communitythat came together to bring a smile on children’s faces.

[Items we refer to]1) 17 SDGs and 169 targets

2) Important ESG items
Children receiving school supplies
at the “Shoes for School” event

Netherlands Changing and Reducing Packaging Materials

Environmental protection

Vanderlande Industries Holding B.V. (Vanderlande)

2 Assessment of Importance

Assessing the importance of the identified issues from both internal and external viewpoints to selectthose having higher degrees of importance[Assessment method]

For protection of the environment, Vanderlande changed and reduced packaging
materials used to transport spare parts necessary for maintenance of logistics
systems. Firstly, Vanderlande changed packing tape from vinyl to recyclable paper,
which is expected to reduce its annual plastic consumption equivalent of 30,000
meters of tape. Another improvement was a reusable separator to place a maximumof eight small parts, which had been packaged separately, in one box. Vanderlande
will continue to make effective use of resources and undertake its corporate activities
in an environmentally friendly manner.

1) Conducting questionnaires and discussions with relevantinternal departments2) Plotting onto a 2 x 2 materiality matrix to selectissues having higher degrees of importanceImportance whenviewed from outside[Provision of logistics solutions]

Package using a reusable separator

Importance for Toyota Industries

Germany Cooperating in Local Firefighting Operations and Becoming a “Partner of Firefighters”

Community contribution

3 Validation of Adequacy

TD Deutsche Klimakompressor GmbH (TDDK)[Production of car air-conditioning compressors]

Conducting reviews by both our top management and outside experts to receive feedback and confirm
the adequacy of the selected issues

In rural areas near Bersndorf in the Free State of Saxony, where TDDK is located, local
fire brigades are mostly on a volunteer basis and in case of need volunteer firefighters
get an alert. TDDK supports their activities through donations as well as encouraging
and allowing associates to respond to alert calls during their work time. As a show ofgratitude, TDDK was honored as a “Partner of Firefighters” in October 2019 by thecounty’s head of firefighters. TDDK will continue its ongoing efforts to cooperate inlocal firefighting operations.

4 Approval by Top Management
Local fire brigade supported by TDDK

54

Toyota Industries Report 2020

Gaining approval of the CSR Committee chaired by the president and comprising our top management
based on the validation results

55