Toyota Industries Report 2013

Environmental Initiatives
Special Feature: A Biotope to Link People,
Nature and the Local CommunityP

58− 61

Vision for Environmental Activities

P

62

Structure to Implement Environmental Management

P

63

Fifth Environmental Action PlanP

64− 66

Establishing a Low-Carbon Emission SocietyP

67− 68Establishing a Recycling-Based Society

P

69

Reducing Environmental Risk andEstablishing a Society in Harmony with Nature

P

70

Environmental Management

P

71

Environmental Impact Flow and Environmental Accounting

P

72

57

Special FeatureSpecial Feature

Initiatives for Biodiversity

Initiatives for Biodiversity

A Biotope to Link People, Nature andthe Local Community—Aiming to Develop an Ecological Network—
A biotope is a microcosm space where various living organisms native to a region can live and thrive in a self-sustainable
manner. In September 2012, Toyota Industries turned its idle land into a community-friendly biotope.
In cooperation with an initiative of Aichi prefectural government in Japan to promote the development of ecologicalnetworks, we have been working to create an environmental setting that can serve as a node to connect green zones in thesurrounding areas with waterways and become a habitat for various living organisms.
We also wish to create a link with the local community by making the biotope accessible to the public. Toyota Industries
will also provide environmental education and maintain this biotope jointly with local elementary schools and community
members.
The new biotope embraces our vision of creating a new place of interaction among nature, living organisms and people.

Creating a Biotope That Facilitates Development of an Ecological Network
The Tenth Meeting of the Conference of the Parties to the Convention on Biological Diversity (COP10) in October 2010 took place in
Aichi Prefecture. In order to uphold COP10’s philosophy of “Living in Harmony with Nature,” the prefectural government has since
been promoting the development of ecological networks throughout the prefecture as a means of conserving biodiversity. In the
Chita Peninsula, where our production sites are located, the Chita Peninsula Ecological Network Council was established in January
2011 with the aim of developing an ecological network through collaboration among organizations and individuals, including theprefectural government, companies, NPOs, expert bodies and students. Taking part in this council, Toyota Industries has been
cooperating with other members and carrying out activities to contribute to the formation of an ecological network.

n What Is an Ecological Network?
Land development and other activities often
divide a natural environment into smaller
segments. Developing an ecological network
means to connect these isolated segments ofgreen zones and waterways. The resulting
network means a larger living space for various
living organisms and encourages the protectionof biodiversity. (See the illustration on the right.)

Notional Diagram of Ecological Network
Before creating biotope

After creating biotope

Habitat of livingorganisms
Pathway of livingorganisms

Biotopel Isolated green zones, providing alimited habitatl Connected green zones, extendinga habitatn Ecological Network Surrounding Target Area
Chita Peninsula
Our biotope, which we named “Biotope at the East of Obu Station,” is located in the northern area of the Chita Peninsula in Aichi
Prefecture. Unlike the southern region, which remains rich in nature with an abundant variety of living organisms, industrializationand housing development have adversely affected the quantity and quality of greenery in the northern region.
Surrounding Area
There are two large green zones, or natural habitats, in the vicinity. Toyota Industries’ biotope can serve as a stepping-stone to linkthese two green zones.
Our biotope is regarded as being very unique in Japan, as it is located adjacent to the residential area, not within our own
corporate factory site, thus providing free access to the premises to everyone.

Aichi Prefecture

Chita Peninsula

Biotope at the Eastof Obu Station

Surrounding arean Message from Stakeholders

Toyota Industries’ Positioning of the Biotope Project
In February 2011, Toyota Industries revised the Global
Environmental Commitment and explicitly stipulated in the updated
environmental policy that we undertake efforts to protect
biodiversity.
Under the Fifth Environmental Action Plan that defines ouractivities in the medium term, we have been promoting initiatives
after carefully identifying the impact of our business activities on
biodiversity and setting specific targets accordingly.
The creation of a biotope is one such initiative. We seek tocontribute to the protection of biodiversity through collaboration
with such organizations as the prefectural government, non-profit
organizations (NPOs), local community and expert bodies.

58

Toyota Industries Report 2013

愛知県
Aichi
Prefecture

Toyota Industries’
biotopeToyota Industries’ biotope is not just an ordinary
biotope. It is a biotope to connect to the naturalenvironment in the surrounding area, forming an
ecological network and regenerating the indigenous
ecosystem in front of a railway station located in theproximity of large factories. The biotope will attract
dragonflies, birds and children as well as provide a
Takahito Niwa
space for people to interact and enjoy nature. It will
Director, Natural
Environment Division, be a valuable asset shared by all local community
Department of themembers.
Environment, Aichi
Development of an ecological network by aPrefecturecompany is an extremely unique, visionary initiative,
and we are truly grateful for Toyota Industries’ efforts. We will publicize
this initiative widely as one of the most outstanding corporate initiatives
both in Japan and in the world.

Takaya Iida

College of Business
Administration andInformation Science,
Chubu University

As part of activities under theLife Relay Project*, weplanted the region’s native
trees in the biotope
established by Toyota
Industries. Some insects andwild birds are already visiting,
and we hope this biotope will
become a biotically diverse,
self-sustainable habitat.

Initiatives for Biodiversity

Natural habitat(Aichi Kenko-noMori Park)

Environmental
Initiatives

Natural habitat(Futatsu-ike Park)* A project jointly carried out by Aichi Prefecture, NPOs, companies andstudents with the aim of forming ecological networks by leveraging
corporate green zones of the Chita Peninsula as well as developing
young environmental leaders59Special Feature

Environmentally Designed Biotope

Together with the Local Community

Our biotope is environmentally designed to the extent possible, from the choice of materials to maintenance and management.
The following are a few of such examples.

“Eco-Stones”

We recycled waste generated at ourplants, such as dust and scrap, andcreated eco-stones by applying a smelting
reduction process. These stones are used
for landscaping and marking the pond
and streams.

“Agleaf” (Soil Amelioration)

We collected fallen leaves and branches
pruned from trees on our factory premises
and recycled them as a tree mulchingmaterial*.
* Used to prevent surface soil from being blown away,
inhibit growth of weeds and retain soil temperature andhumidity to promote growth of plants

Initiatives for Biodiversity

Solar Power Generation

In designing our biotope, we sought advice from local government officials,
experts and members of environmental organizations from the planningphase. We also solicited opinions from local residents via briefing sessions
on such matters as ways to utilize this biotope.
During the construction phase, we collaborated with various entities,
including a local welfare organization, special needs school and Boy Scout
troop, and made wooden benches and released fish into the stream.
We will continue to work together with local community members tomaintain and manage this biotope so that it remains an accessible,
comfortable place to interact with nature.

Pumps that circulate water within the
biotope use electricity naturally generated
by solar panels installed on the premises.
Local community briefing session

Rendering of Our Biotope

Local Boy Scout members releasing fishn Future Directionn Special Website Opened

Environmental
Initiatives

The creation of a biotope was the first initiative of its kind ever undertaken
by Toyota Industries. Our aim is to nurture a biotope to bring nature andliving organisms back to the way they should be and contribute to theconservation of regional biodiversity.
For further expanding an ecological network within the region, we willcontinue to undertake activities to develop another biotope and ones that
follow, with the ultimate goal of forming our own unique ecological network.

When I heard about
this project, my first
impression was a
corporate park open
to the local community.
As I listened closer,
I realized it was notjust a simple park,
but a natural habitat
based on a clear
concept ofHideo Yoshimura
Director, Obu District,connecting to the
Obu City, Aichi Prefecture
surrounding naturalenvironment and providing a larger space forliving organisms. I was drawn to the idea.
This biotope is a place for nature andliving things, but we hope to turn the place
into a small oasis for people as well, wherechildren play with dragonflies and butterflies
and adults come to relax. In doing so, ourcommunity will provide necessary support
for this project.

http://www.toyota-shokki.co.jp/biotope/ (Japanese)

Received a Letter ofAppreciation from the Governorof Aichi Prefecture
We received a letter of appreciation from
Governor Omura of Aichi Prefecture for our
significant contribution to the developmentof ecological networks within the prefecture
through our biotope initiative.

60

We will realize our vision of creating “a biotope
to link people, nature and the local community,”
with the cooperation of community members,
the prefectural government and experts.
Toyota Industries Report 2013

Granted Excellence Prize in2013 Aichi Environmental
AwardsToyota Industries’ biotope is used for
activities of the Life Relay Project andhas been developed in close
collaboration with other organizations
participating in the project. Our efforts
were highly recognized as an exemplary,forward-thinking project effective indeveloping ecological networks. The 17
participants, including Toyota Industries
and the student executive committee ofthe project, received an Excellence Prizein the 2013 Aichi Environmental Awards.

Won Biotope Award in the Fifth Biotope
Commendation
At the Fifth Biotope Commendation* sponsored by
the NPO Japan Biotope Association, Toyota
Industries’ biotope received the Biotope Award,
the program’s highest award. The association
highly appraised the concept of our biotope, its
environment-conscious design and sustainable
maintenance and management jointly carried out
with the local community.

Initiatives for Biodiversity

External Awards* A program to award excellent biotopes throughout Japan for the
purpose of further encouraging the creation of biotopes and raise
public awareness61

Vision for Environmental Activities

Structure to Implement Environmental Management

Toyota Industries works with consolidated subsidiaries in and outside Japan to promote environmental
activities on a global scale. With regard to our “CO2 Cancel” initiative, we aim to accomplish its targets infiscal 2016.

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

	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 andservices that are clean, safe and of high quality.
Accordingly, in February 2011, we established the Global
Environmental Commitment, a specific environmental
action guideline, to be shared and implemented
throughout the Toyota Industries Group.
The entire Toyota Industries Group comprising 154
companies in and outside Japan will dedicate concerted
efforts to realizing a prosperous life in harmony with thenatural environment by carrying out activities aimed at“establishing a low-carbon emission society,” “establishinga recycling-based society” and “reducing environmental
risk and establishing a society in harmony with nature” as
our way of “promoting environmental management.”
Aiming at realizing a prosperous life in harmony
with the natural environment• Change to more environmentally friendly chemicals• Minimize environmental risks

Steps to Accomplishing “CO2 Cancel”
1

Environmental
Managementn Environmental Management Structure
Environmental Committee

PresidentInternal audit•Team leader•Supervising auditors•Auditors

Chief environmental administrator• Approach towards biodiversity• Human resources,
environmental awareness• Cooperation with global
society and local communities

2 Simulate a timeline to accomplish “CO2 Cancel”
3

Notional Diagram of Global Environmental Commitment

Specify targets (including when to accomplish“CO2 Cancel”)

Head Office
Corporate Planning
R&D
Purchasing
Quality Assurance
Human Resources
General Administrationn System of Mutual Audits

Specialized committees

Responsible internal auditor

Divisions
Materials Handling Equipment
VehicleEngineCompressor
Electronics
Logistics
Textile Machinery

Toyota Industries implements annual internal
environmental audits as well as external audits carried out
by an independent third-party institute.
The external audit conducted in fiscal 2013 revealed
five non-conformances. We have already completed
measures to correct them and passed on the relevant
information to other plants to prevent recurrences.
As for internal audits, we introduced a system ofconducting mutual audits among business divisions infiscal 2013. Previously, internal audits of individual
business divisions had been led by the Environment
Department of the Head Office. Under the new system,
the Environment Department of one business division
plays a central role in an internal audit of another businessdivision. By adopting this method, we aim to upgrade theoverall capabilities of the Environment Department of eachbusiness division.

Product Environment Subcommittee

Business division A

Production Environment Subcommittee

Environment Department

Audit

Business division B
Environment Department

Audit

Company-Wide CO2Emission Reduction Conference

Division-Based
Promotion Committees

Business planning

Business planning

Production engineering

Production engineering

Manufacturing

Manufacturing

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

4 Promote activities to achieve these targets

	Working toward “CO2 Cancel”
What Is “CO2 Cancel”?
We have been promoting initiatives under our original
concept called “CO2 Cancel.” This refers to our aim tooffset CO2 emissions from production activities by

5 Accomplish “CO2 Cancel”
6 Define higher targets (e.g., “CO2 Double Cancel”)

CO2 Cancel

North America■ Production companies: 10

CO2 emissions from production activities= Total CO2 emissions from Toyota Industries’ plants

Reduction of CO2 emissions via improved
product efficiency
Toyota Industries Report 2013

Non-production companies
Japan: 24
Outside Japan: 93

Notional Diagram of “CO2 Cancel”

Japan■ Non-consolidated: 10 plants■ Production companies: 13

Europe■ Production companies: 6

CO2 emissions fromproduction activities

62

n Scope of Group-Wide Environmental Management (As of March 31, 2013)

Reduction of CO2 emissions via improved product efficiency=T otal reduction in CO2 emissions attained by major products
which are manufactured at Toyota Industries’ plants

Toyota Industrial Equipment Mfg., Inc. (U.S.A.)The Raymond Corporation (U.S.A.)
Raymond-Muscatine Inc. (U.S.A.)
North Vernon Industry Corp. (U.S.A.)
Indiana Hydraulic Equipment, Corp. (U.S.A.)
Michigan Automotive Compressor, Inc. (U.S.A.)TD Automotive Compressor Georgia, LLC (U.S.A.)
Cullman Casting Corporation (U.S.A.)
Cascade Corporation (U.S.A.)
Toyota Industries Compressor Parts America, Co. (U.S.A.)BT Products AB (Sweden)
Toyota Industrial Equipment, S.A. (France)
CESAB Carrelli Elevatori S.p.A. (Italy)
L.T.E. Lift Truck Equipment S.p.A. (Italy)
TD Deutsche Klimakompressor GmbH (Germany)
Uster Technologies AG (Switzerland)

Asia■ Production companies: 7

Aichi Corporation (Saitama)
Nishina Industrial Co., Ltd. (Nagano)
Tokaiseiki Co., Ltd. (Shizuoka)
Altex Co., Ltd. (Shizuoka)
Hara Corporation (Gifu)
Mino Tokyu Co., Ltd. (Gifu)
HANDA Casting Company (Aichi)
Unica Co., Ltd. (Aichi)
IZUMI MACHINE MFG. CO., LTD. (Aichi)
Nagao Kogyo Co., Ltd. (Aichi)
Miduho Industry Co., Ltd. (Aichi)
Iwama Loom Works, Ltd. (Aichi)
Tokyu Co., Ltd. (Aichi)

Vision for Environmental Activities/
Structure to Implement Environmental Management• Development of products andtechnologies in pursuit of superiorenergy efficiency• Achievement of minimum energy
consumption through the innovationsin production engineering

Establish parameters to calculate CO2 reduction
volume for each product	Environmental Audits

Toyota Industries has positioned environmental response
as one of its most crucial management issues. To quickly
reflect top management’s decisions on business
operations, Toyota Industries has established and been
operating a Company-wide integrated environmental
management system (EMS), with the president at the top.
In fiscal 2011, we initiated the process of consolidating
environment-related regulations that had been establishedseparately by each business division. In fiscal 2013, weformulated and started operating an integrated version ofregulations related to evaluation of the impact of overallbusiness activities on the environment (evaluation ofenvironmental aspects).

Admin office
Recycling-basedsocietyLow-carbon
emission society

Defining a Target (Timeline)
In fiscal 2013, we used our original parameters to estimate
CO2 reduction volume attained in each of the products wedevelop (lift trucks, engines, car air-conditioning
compressors, car electronics components, textile
machinery and others) through such means as improved
energy savings and weight reduction.
As for CO2 emissions from production activities,
we estimated annual emission volume by taking into
account both the CO2 emissions that naturally increased inline with an expansion of production volume and the CO2
emissions that declined as a result of CO2 reduction
activities.
We simulated the overall CO2 emissions volume basedon these estimates and specified fiscal 2016 as the target
year to accomplish “CO2 Cancel.”In the years ahead, we will facilitate activities towardachieving this goal.

	Improving Environmental Management
System Efficiency

Environmental
Initiatives

Environmental risk
reduction
Society in harmony
with nature• Effective use of resources at thedeveloping stage of products• Improvement of productivity interms of resources usage

reducing CO2 emissions via improved product efficiency
and other means. We have adopted this approach as a
new environmental target under the Fifth Environmental
Action Plan and been promoting activities accordingly.

TD Automotive Compressor Kunshan Co., Ltd. (China)
Toyota Industry (Kunshan) Co., Ltd. (China)
Zhejiang Aichi Industrial Machinery Co., Ltd. (China)
Kirloskar Toyota Textile Machinery Pvt. Ltd. (India)
Toyota Industrial Equipment Vietnam Co., Ltd. (Vietnam)
Nishina Industries Vietnam Co., Ltd. (Vietnam)
P.T. TD Automotive Compressor Indonesia (Indonesia)

63Fifth Environmental Action Plan
As a result of our strong commitment to the Fifth Environmental Action Plan (fiscal 2012 – fiscal 2016),
we successfully achieved the targets set for fiscal 2013. In fiscal 2014, we will continue to facilitate activities
to achieve a greater reduction in environmental impact.

	Progress in the Fifth Environmental
Action Plan
With an eye to realizing a prosperous life in harmony with
the natural environment through the establishment of asustainable society, we have formulated the Fifth
Environmental Action Plan for the period from fiscal 2012

n Establishing a Recycling-Based Society
Segments

Action Policies/Specific Actions

Subject

Scope

FY2013 Targets

Control Items

Base Year (FY)to fiscal 2016, promoting activities according to the plan.
In fiscal 2013, we succeeded in achieving all targets
defined for the fiscal year under the plan. To reduce
environmental impact further, we have also determinedtargets to be attained by fiscal 2016.

Implement initiatives to promote 3R (reduce,reuse and recycle) design for effective
resource utilization•Reduce use of resources through longer
product life
Products •Reduce use of resources throughstandardization, modularization and reductionof components•Reduce use of resources through weight andsize reductions•Promote reuse of components and resources

Targets

FY2013 Achievements
Achievements

FY2016 Targets

Year
Evaluation Base(FY)

•Realized more compact
inverter for electriccompressors

○

1.06

4.25

○

1.13

1.28

○

*2

Targets*2

The results up to fiscal 2013 that are listed on pages 64–72 were surveyed by Toyota Industries Corporation.

n Establishing a Low-Carbon Emission Society
Segments

Action Policies/Specific Actions

Subject

Scope

Control Items

FY2013 Targets
Base Year (FY)

Targets

FY2013 Achievements
Achievements

Reduce CO2 emissions in the market by 10%*1
from major products to be developed during theperiod covered by the Fifth Plan

<Materials Handling
Equipment Business>•Developed highly efficientelectric lift truck byadopting a regeneration
system and other features*2

Enhance resource productivity<Packaging materials>•Reduce use of timber-derived packaging
materials
Production <Resources>•Reduce the volume of discarded materials bytaking action at the source, such as
improving yields and other measures•Promote internal reuse

Promoting measures to curb global warming•Promote horizontal deployment oftechnologies to curb global warming•Strengthen and expand ESCO*5 activities

by promoting mixed transport among
business divisions

64

Toyota Industries Report 2013

1991

Segments

2006

Action Policies/Specific Actions

Subject

Scope

Control Items

1.12

1.23

○

1.16

1.45

○

FY2013 Targets
Base Year (FY)Global-17% (FY09-13 average)

○

1.15

1.28

○

1.32

1.49

○

1.02

1.29

○

2006

1.01

—

—

Targets-18%

FY2013 Achievements
Achievements

FY2016 Targets

Year
Evaluation Base(FY)

Targets•Developed lift truck
engines compliant withemissions regulations
ahead of schedule*2•Expanded the scope of
substances of concern(started investigating
substances of concern
contained in supplies)•Investigate chemical substances contained in
products and manage switching over of
SVHC*8 and other substances of concern toother substances

○

*2

1.27
2006

Nonconsolidated
Consolidated
subsidiaries
in Japan

Ecoefficiency*7

Nonconsolidated

1.47

2006
—

—

Further reduce emissions of substances ofconcern•Reduce emissions of substances of concern
mainly from painting processes
Minimize environmental risks

Production •Expand the use of a preliminary review

Consolidated
subsidiaries
outsideJapan
CO2 from
logistics-10%(FY09-13
average)

1.01

Fifth Environmental Action Plan

CO2emissions•Energyderived
CO2•5 gases*6•CO2 fromlogistics

Total
emissions

1.09

n Reducing Environmental Risk and Establishing a Society in Harmony with Nature*2

Manage chemical substances contained in

Reduce greenhouse gas emissions during
production processes through energy JIT*4

Reduce CO2 emissions through green logistics•Promote modal shift

NonEco-efficiency
consolidated

Products products

Nonconsolidated

2007

2013
Waste
generation
volumeReduce emissions to improve air quality inurban areas in all countries and regions•Develop engines that meet future regulations

Promote energy reduction and energy
conservation through innovative production
technologies

Logistics •Reduce the number of transportation vehicles

In Japan○In the R&D field, develop technologies forenergy efficiency•Develop new technologies that contribute toimproved energy efficiency in automobiles<Energy-derived emissions>•Promote energy conservation of production
facilities•Promote airless/steamless operations
Production •Optimize supply energy•Encourage every employee’s participation
through visualization of energy loss
•Review energy-related strategy<CFCs>•Ensure complete recovery

2007

Consolidated
subsidiaries
in Japan<Textile Machinery
Business>•Incorporated IPM*3 motorin ring spinning frames
and achieved better
energy savings ofpneumatic suction
cleaning device

In the Textile Machinery Business, develop
technologies and products that will contributeto reduction of CO2 emissions•Reduce energy use through lower air
consumption•Reduce power use through lower load fromwindage loss
•Reduce energy loss

Eco-efficiency

Targets<Automobile-Related
Business>•Developed highly efficientelectric compressor•Developed plastic glazingback window

In the Materials Handling Equipment Business,develop technologies and products that willcontribute to reduction of CO2 emissions•Improve fuel efficiency of internal-combustion
lift trucks•Reduce energy loss in electric-powered lift
trucks and improve energy efficiency offunctional units

Nonconsolidated

Environmental
Initiatives

Products

Year
Evaluation Base(FY)○

In the Automobile-Related Business, promoteelectrification and develop technologies andproducts that will contribute to reduction of
CO2 emissions•Improve energy efficiency of car air
conditioners•Develop technologies to respond toelectrification of vehicles•Develop technologies to enable weight
reduction•Reduce energy loss
•Develop new engines

Packagingmaterial
volumeFY2016 Targets

1.05

1.16

○

—

—

Total
emissions

1991

-15%

-38%

○

1991

-20%

Ecoefficiency

2007

1.06

1.28

○

2007

1.09

system•Reduce risks related to wastewater•Appropriately manage chemical substances
based on social conditions•Enhance risk communication with relevantorganizations and local residents

VOC*9emissions

Nonconsolidated(automobile
body)

Emissionvolume perunit ofproduction—

24 (g/m2)

24 (g/m2)○—

24 (g/m2)

65

Establishing a Low-Carbon Emission Societyn Promoting Environmental Management
Segments

Action Policies/Specific Actions

Subject

Scope

Control Items

FY2013 Targets
Base Year (FY)

Reinforce CO2 reduction activities for “CO2
Cancel”•Further reduce CO2 emitted from production
activities in plants•Aim to cancel out CO2 emissions of Toyota
Industries by reducing CO2 emissions
through improved efficiency in newly
developed products

Targets

FY2013 Achievements
Achievements

FY2016 Targets
Base Year(FY)

Targets

We position the establishment of a low-carbon emission society as one of our most crucial environmental
tasks. We will work to reduce CO2 emissions in our global business activities and at the same time accelerate
our efforts to develop more environment-friendly products.

•Set the timeline for achievement of“CO2 Cancel”(Target: FY2016)

CO2 Emissions (Production Activities)
FY2013 Results

FY2013 Targets
Augment and promote consolidated
environmental management•Build a global environmental management
system and promote related activities to:1) C omply with environment-related laws andreduce environmental risks in each country2) A chieve the highest-level performance ineach country•Aim for efficient and systematic corporate
management by integrating and operating
environmental management system andquality/safety management systems

10% reduction
Eco-efficiency (global)

1.15•Conducted environmental awarenesssurvey among employees, whichscored 3.7 out of 5 points*10

Augment activities related to protection of
biodiversity•Identify the impact of business activities on
biodiversity and reinforce initiatives bydefining specific goals•Contribute to biodiversity throughconservation of forests and protection of rare
species•Revised Environmentally Preferable
Purchasing Guidelines that included
considerations to biodiversity•Established Biotope at the East of
Obu Station•Reviewed energy strategy for the
medium to long term

*1: Target products Toyota Industries develops and produces. The CO2 reduction volume is calculated based on the method Toyota Industries determined using FY2011 levels as the baseline.
*2: Details undisclosed due to confidential information and other reasons*3: Short for interior permanent magnet, this is a motor with a magnet embedded inside its rotor, offering improved energy savings, high efficiency and high torque.
*4: Just In Time
*5: Short for Energy Service COmpany, ESCO provides comprehensive services related to energy savings and supports energy-efficient activities.
*6: Greenhouse gases other than CO2, including methane (CH4), dinitrogen monoxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6)*7: Eco-efficiency = Production efficiency in subject year / Production efficiency in base year
Production efficiency = Production indicator (Net sales or production volume, etc.) / Environmental impact of production activities*8: Substances of Very High Concern*9: Volatile Organic Compounds*10: Specific targets are set separately and progress is disclosed via the Company Website or Toyota Industries Report and other media.

Initiatives for Establishment of a Low-Carbon
Emission Societyn CO2 Emissions (Non-consolidated/Consolidated
subsidiaries in and outside Japan)
Consolidated subsidiaries outside Japan
Non-consolidated
Consolidated subsidiaries in Japan
Eco-efficiency
Eco-efficiency (non-consolidated)
Eco-efficiency (consolidated)
1.49 1.6 Good
1.43
1.34
1.4

1.17

Toyota Industries Report 2013

1.06

1.00
734

666

600
400

1.10
596

1.18
679

1.27

1.28

762

797

12

13

1.2
1.0

Haruyuki Ito
Group Manager, Machining
Production Engineering Office,Production Engineering
Department, Compressor
Division

305

200
Good

66

1.00

Total
emissions
(kt)
800

1.24

0

(FY) 91

06

09

10

11

Position and department asof March 31, 2013

In developing this highprecision combined machine,
we first needed to clarify the
structure of our conventional
general-purpose equipment.
Then, to establish an original
production method, we added
various improvements to thismachine, which is one type of
manufacturing equipment, andapplied the world’s firstengineering technology.
As our future activity, we
aim for improved durability andhigher precision of thismachine and will work toenhance efficiency of themachining process for othercomponents.

Fifth Environmental Action Plan/
Establishing a Low-Carbon Emission Society•Won Environment Minister’s Award for
Global Warming Prevention Activity inrecognition of reduction of CO2
emissions through the introduction ofalternative coke products•Won Silver Prize of the Aichi
Environmental Awards for serializing
electric compressors

Under the Fifth Plan, we set out to achieve a target of
reducing total non-consolidated CO2 emissions fromproduction activities by 10% in fiscal 2013 comparedwith the fiscal 1991 level. We successfully reached thistarget as a result of our steady, ongoing efforts,
including activities to save power during summer andreduce peak power load, which started in fiscal 2012,
as well as activities to visualize energy loss in fiscal
2013. Globally, our target was to achieve ecoefficiency of 1.15 (using fiscal 2006 as the base year),
and we attained a significantly better result than thedefined target. We will make steady progress toward a
new target set for fiscal 2016.
Our product development activities are based on
the keywords of 3Es (energy, environmental protectionand ecological thinking), and we focus on developing
products that meet the need for increased energy
savings, electrification and weight reduction. In thisarea, we are currently working toward a target of
attaining a 10% reduction in CO2 emissions fromprimary products by fiscal 2016 compared with thefiscal 2011 level.

The Compressor Division has been working to develop
more compact production lines for electric compressors
since fiscal 2010 to improve the efficiency of manufacturing
processes and reduce CO2 emissions.
In fiscal 2013, we promoted improvement activities toreduce CO2 emitted during the parts machining processby 30%, or approximately 110 tons. With the leadership of
the Production Engineering Department, the divisioncollaborated with relevant departments and an external
equipment manufacturer and developed a high-precision
combined machine that can reduce the overall size of
production lines. The machine eliminates unnecessary
processes and attains significantly higher energy-saving
performance, thereby reducing CO2 emissions byapproximately 140 tons. The machine is also capable ofunprecedented higher precision processing, which
contributes to quieter operation of electric compressors.
In addition to electric compressors, the new highprecision combined machine can be used in the machining
line of conventional car air-conditioning compressors forinternal-combustion vehicles. We installed this machine atMichigan Automotive Compressor, Inc. (MACI) in the
United States and TD Deutsche Klimakompressor GmbH(TDDK) in Germany by the end of fiscal 2013.
Consequently, we reduced annual CO2 emissions of theentire Toyota Industries Group by roughly 600 tons.
Based on these outstanding achievements, this project
won the Most Outstanding Practice Award in fiscal 2013
under our internal award program to recognize excellent
environmental improvement activities.

Environmental
Initiatives

Improve eco-conscious brand image•Reinforce environmental activities according
to the contents and results of Survey ofEnvironmental Oriented Management Index
to pursue higher brand image

17
1.28

% reduction*FY09–13 average (vs FY91 level)(FY06 = 1.00)*10

Promote sustainable plant activities•Build a plant environment in harmony withnature by promoting energy reduction andenergy conservation through innovative
production engineering; by reducing energy
loss; and by using renewable energy andother means

Total emissions (non-consolidated)•Checked the precision ofenvironmental data at consolidated
subsidiaries in Japan and provided
support for improvement•Disseminated information regarding
plant-related laws and regulations•Confirmed compliance through checksheetsEnhance and promote environmental
education and enlightenment activities•Develop environmental specialists to leadinternal environment-related activities•Strengthen internal environment-related
activities and broaden family-friendly
initiatives by planning and promoting
enlightenment activities that can be carriedout at home

General	New High-Precision Combined Machine
to Reduce CO2

Summary67

Establishing a Recycling-Based Society	Certification of Environmentally Friendly
Product
Toyota Industries has been proactively promoting
development and design of eco-conscious products.
To certify products with exceptionally outstanding
environmental performance, we launched the
ESA34 (Electric Compressor)

10% higher*

1*1: Compared with the previous model by using
in-house testing patterns

High Pick Lift (Electric Lift Truck)

Approx.

80% longer*2*2: 1.0-ton model (operating in S mode) comparedwith the previous model

E-shed (Electronic Shedding Device for Air-Jet Looms)
Power consumption

22% reduction**3: Compared with the previous model(operating at 800 rpm)

FY2013 Targets

3

Eco-efficiency (non-consolidated)(FY06 = 1.00)

Eco-efficiency(non-consolidated & consolidated subsidiaries in Japan)

1.28

1.13
(FY06 = 1.00)

Points contributing to less environmental impact•The new electronic shedding device, whichallows the weaving of complex-patterned
fabrics, recovers energy generated in the
deceleration process. By upgrading theprevious model, the E-shed device allows
increased energy recovery and contributes toreduced power consumption.

Initiatives for Establishing a Recycling-BasedSociety

Eco-efficiency (Japan consolidated)

2.0
1.79
1.57

300
200

230

Iron scrap(reusable)

1.08

1.56

Raw material

1.16

1.22

1.20

1.23

1.2
1.0

1.00
185

Waste

Good

1.6
1.28 1.4

154

168

171

163

10

11

12

13

Products(counterweights
of lift trucks)

Iron scrap(reusable)

Metal scrap(non-standard)
PartnercompanyRawmaterial

Iron scrap(reusable)

100
Good 0(FY) 06

Awards ceremony

Sold to the market

HANDA Casting

1.8

1.61

Metal scrap(non-standard)

Toyota Industries(each plant)

Eco-efficiency

Waste generation volume (kt)

*4: For more details, see page 66 of the Toyota Industries Report 2012.
*5: A solid, plant-derived biofuel produced by heating and compressing biomass such as
wood chips from thinned trees or tea grounds thrown away by beverage
manufacturers

Waste
Products(counterweights
of lift trucks)

Consolidated subsidiaries in Japan

Eco-efficiency (non-consolidated)

1.00

Toyota Industries(each plant)

After Improvementn Waste Generation Volume(Non-consolidated/Consolidated subsidiaries in Japan)
Non-consolidated

Before Improvement

Establishing a Low-Carbon Emission Society/
Establishing a Recycling-Based Society

Our fiscal 2013 eco-efficiency targets in the area ofwaste generation volume under the Fifth Plan were1.12 on a non-consolidated basis and 1.13 for Toyota
Industries and its consolidated subsidiaries in Japan(fiscal 2006 as the base year). Since fiscal 2010,
personnel in charge of waste-related matters in eachplant and their counterparts in the Purchasing
Department of the Head Office have been holding
meetings to exchange information on waste, share theinformation on waste reduction efforts at each plantand consider joint reduction efforts among plants. We
also support waste reduction activities of ourconsolidated subsidiaries in and outside Japan by
actively sharing best practices throughout the Group.
In fiscal 2013, liquidation of one consolidated
subsidiary in Japan resulted in a lower eco-efficiency
than in the previous fiscal year. Regardless, we
successfully achieved fiscal 2013 targets set under theFifth Plan, both for Toyota Industries on a nonconsolidated basis and for Toyota Industries and its
consolidated subsidiaries in Japan.

In fiscal 2011, we rolled out an initiative to reduce CO2
emitted from the cast iron melting process*4 by replacing
coal coke with such substitutes as biocoke*5. In
recognition of this effort, we received the 2012
Environment Minister’s Award for Global Warming
Prevention Activity in the Countermeasure Technology
Introduction and Dissemination Category. This award isgiven to individuals or organizations every year tocommend their exceptional achievements in curbing
global warming.
Our efforts will continue to focus on further reducing
CO2 emissions by increasing the ratio of biocoke used in
the melting process and seeking other fuel substitutes.

Toyota Industries Report 2013

1.23

1.12

	Received the Environment Minister’sAward for Global Warming Prevention
Activity68

FY2013 Results

In July 2012, we started an initiative to reuse waste metal
scrap generated internally, which we previously sold to themarket, to the maximum extent possible as a raw material
to produce parts for our products.
Among waste generated by our plants, iron scrap has
already been reused as a foundry raw material by HANDA
Casting Company, a consolidated subsidiary in Japanproducing foundry parts for lift trucks. Other types of metal
waste, such as oil-containing debris, large-sized scrap
from press processing and mixed metal scrap of non-iron
metals, were not recyclable and were sold to the market.
For such metal resources, in fiscal 2013 one partnercompany of Toyota Industries began to undertake suchprocesses as briquetting as well as shredding and sortingby hand, effectively increasing the amount of reusable
metal scrap. We now recycle approximately 1,400 more
tons of waste annually within the Toyota Industries Group.

Environmental
Initiatives

Approx.

	Effective Recycling of Metal Resources
within Toyota Industries Group

Waste Generation Volume (Production Activities)

Points contributing to less environmental impact•In place of a DC motor used in the previous model,
we adopted our newly developed, high-powered,highly efficient AC motor for both cargo handling anddriving.
•Various regeneration systems run when the operator
lowers the fork, releases the accelerator, applies
brake control or performs a switchback maneuver,thus recovering energy very efficiently.

UptimeWith a view to contributing to the establishment of a recycling-based society, we have dedicated considerable
efforts to reducing waste generation volume and achieved results that greatly exceeded the targets laid out in
the Fifth Environmental Action Plan.

Summary

Points contributing to less environmental impact•The ESA34 achieves higher efficiency through the
adoption of a new mechanism. Energy efficiency has
been improved by approximately 10% compared withthe previous model.
•The use of a smaller inverter, a modification of structural
layout, a change in parts composition and a fewer
number of fastening locations made the ESA34
approximately 10% lighter than the previous model.

Energy efficiency

Approx.

Environmentally Friendly Product Certification Systemin fiscal 2007. Up to fiscal 2012, nine products haveobtained certification under this system. In fiscal 2013,
we certified another three as environmentally friendly
products, as described below.

Processing/sorting
Metal scrap(non-standard)
Raw material

09

HANDA Casting

Sold to the market

69

Reducing Environmental Risk andEstablishing a Society in Harmony with Nature

Environmental Management

We have been striving to reduce emissions of substances of concern by implementing thorough managementof chemical substances in product development and production activities.

Summary
VOC Emissions (Production Activities)
FY2013 Targets
Emissions per unit of production(non-consolidated/automobile body)

24

g/m2

FY2013 Results

24n Trichloroethylene Readings

g/m2

Under the Fifth Plan, we set a target to attain emission
volume per unit of production below 24 g/m2 forvolatile organic compounds (VOCs) from the vehicle
body painting process and undertook activities
accordingly. Solvents contained in paint are a major
source of VOC emissions. Thus, our efforts have been
focusing on increasing the recovery rate of thinner, asolvent, and improving coating efficiency throughoptimization of spray nozzles’ discharge pressure andamount. These ongoing efforts helped us achieve thefiscal 2013 target.

Main Check Items• Are effluents from outsourced work released directly into
gutters?
• Do subcontractors check vehicle oil leakage before
moving their vehicles?
• Is there leakage or spillage of oil, chemical agents,
detergents or organic solvents on the floor or roadsurface (including green zones and soil)?

	Soil and Groundwater Pollution
Countermeasures
Toyota Industries carries out surveys and purification ofsoil and groundwater contaminated from the past use of
Toyota Industries Report 2013

FY2009FY2010FY2011FY2012FY2013

Kariya Plant

0.67

0.67

0.41

0.38

0.26

Kyowa Plant

0.72

0.34

0.41

0.48

0.33

Weighted average concentration in groundwater (mg/l)

	Status of Compliance with Environmental
Laws
In January 2013, there was one incident at the Kariya
Plant (Aichi Prefecture), in which the biochemical oxygen
demand (BOD) level of effluents exceeded standard values
stipulated under the prefectural ordinance.
According to the survey results, the incident wascaused by an excessive amount of methanol mixed into
a wastewater treatment tank to reduce the amount of
nitrogen. We have reported this incident to the relevant
authorities and already completed corrective measures
along with subsequent confirmations to verify there are
no recurrences.
Following the incident, Toyota Industries held aCompany-wide countermeasure meeting to ensure theprevention of similar incidents within the Company.
Measures implemented at the Kariya Plant were presented
at the meeting, and participants shared information
concerning the incident and discussed measures thatshould be applied by other plants.
There was another instance in which effluents from theplant exceeded standard values at one consolidated
subsidiary within the Toyota Industries Group. This incident
has been reported to the relevant authorities, andcorrective measures have already been completed by thesubsidiary concerned. Subsequent confirmations havealso been made to ensure that there are no recurrences.
In the future, we will promote information sharing among
Group companies and bolster measures to prevent
environmental risks.
We will also continue to augment Group-wide efforts tominimize environmental impact by conducting contingency
training for emergency situations and other proactive
measures.

Among the targets specified under the Fifth Plan, thefocus of our activities in fiscal 2013 was on thedevelopment of human resources capable of taking
voluntary environmental initiatives as well as onconservation of biodiversity. As for human resources
development, we solicited employee engagement
through the use of our internal eco-point system, which
was introduced in fiscal 2012 with the aim of raising
environmental awareness among employees, while
encouraging wall greening activities at each plant. For
this project, employees participated in the planting of
seedlings and can observe growth records on the

Intranet. In the area of conservation of biodiversity, we
created a biotope designed to facilitate the developmentof an ecological network. (See pages 58–61 for moredetails.)

Wall greening at the Kyowa Plant (Aichi Prefecture)

Topic
A New Eco-Conscious Office Building
Constructed by TOYOTA L&F Hyogo
Co., Ltd.
In January 2012, TOYOTA L&F Hyogo Co., Ltd.,a consolidated subsidiary in Japan that engages insales and servicing of materials handling equipment,
constructed a new environment-conscious officebuilding in Nishinomiya-shi, Hyogo Prefecture. The newbuilding integrates leading-edge energy- and powersaving technologies and know-how into its design.
The company installed solar panels and wind power
generation systems on the premises to provide a
portion of electricity used within the building. All
common spaces, such as corridors, are equipped withenergy-efficient LED lighting. At the parking lot, there
are charging stands for plug-in hybrid vehicles, to whichelectricity is fed from the solar panels mounted on the
car park roof.
In the service workshop, various measures havebeen adopted to reduce the use of lighting during

daytime. Transparent shutters and skylights let in naturallight from outside.

Service workshop

What customers demandmost in materials handlingequipment are environmental
performance and safety. Lift
trucks available on themarket now range frominternal-combustion, electricand hybrid types to evenmore environmentally
Hideji Saito
conscious fuel cell lift trucks.
President,
TOYOTA L&F Hyogo Co., Ltd.
As our company engages insales and servicing of such equipment, we havealways felt that we should think about theenvironment in our everyday operations. This strong
belief is reflected in the design of our new officebuilding. The new building serves to convey thesignificance of taking environmental action both toemployees and customers visiting our building toparticipate in experience-based safety dojo or lift
truck training sessions. We will remain environmentallycommitted both internally and externally.

Reducing Environmental Risk and Establishing a Society inHarmony with Nature/Environmental Management

In order to prevent adverse environmental impact caused
by work activities of subcontractors (“outsourced work”),
we conduct a check on whether their particular activities
cause any impact on the environment by requiring them tosubmit an application form for construction operation inadvance.
In fiscal 2013, we started conducting environmental
patrols for outsourced work undertaken during a longholiday period when our environmental personnel are notavailable. We are reinforcing our efforts to prevent adverse
environmental impact by conducting an environmental
inspection on each venue of outsourced work.

Plant

Summary

Environmental
Initiatives

	Eliminating Adverse Environmental
Impact due to Outsourced Work70

trichloroethylene. We regularly report the survey results tolocal 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 fromgrease and oils, we have drilled observation wells at allplants to conduct regular checks.

Toyota Industries promotes the development of human resources capable of taking voluntary initiatives
toward the achievement of targets specified under the Fifth Environmental Action Plan.

New office building71Environmental Impact Flow andEnvironmental Accounting
In this section, we provide an overall picture of environmental impact resulting from our global businessactivities and report the results of environmental accounting (environmental conservation cost, environmental
conservation benefits and economic benefits of environmental conservation initiatives).

	Environmental Impact Flow
INPUT

Environmental
Impact Flow■Energy [consolidated]
Total consumption
Electricity
City gas
LPG
Petroleum products
Coal products
LNG

10,046 TJ*1
1,061,323 MWh
70,742 km3N
4,309 t4,848 kl
6,571 t3,259 tR&D/Design
Procurement*1: Terajoule is a unit used to measure heat.
1 TJ = 1012 joules

Production■Raw Materials [consolidated]
Raw material consumption
638,269 t■Water [consolidated]
Water consumption
4,007 km3
■Chemical Substances [Japan consolidated]
PRTR law*2 designated substances 1,400 t

Transportation/
Sales
Usage

*2: Short for Pollutant Release and Transfer Register, the PRTR law is ascheme whereby businesses measure the release and transfer of PRTR
designated pollutants and report their performance to the government.
The government then compiles this data and releases it to the public.

OUTPUT■Into the Air [consolidated]
755,395 t-CO2
CO2
Greenhouse gases other than CO24,500 t-CO2
CO2 from logistics
37,243 t-CO2
SOx (Sulfur oxides)
568 kgNOx (Nitrogen oxides)
144 t
VOC (Volatile organic compounds)
1,582 t■Chemical Substances [Japan consolidated]
Emissions/transfers of PRTR law
designated substances
599 t■Waste [consolidated]
Waste generation
99,677 t■Into Waterways [Japan consolidated]
Water pollutants
27 t
Discharge of treated wastewater
2,243 km3

Recovery/
Recycling	Environmental Accounting and On-Site Verification
Fiscal 2013 Environmental Accounting*3

On-Site Verification

Scope of data collection: Toyota Industries Corporation(April 1, 2012 – March 31, 2013)
TIBC Corporation*4(April 1, 2012 – June 30, 2012)

Every year, Toyota Industries Head Office’s Plant
Engineering & Environment Department takes the initiativein conducting on-site verification of the accuracy andconsistency of environmental data included in the Toyota
Industries Report. The results for fiscal 2013 are as follows.

*3: E nvironmental accounting data is collected in compliance with the Ministry of theEnvironment’s Environmental Accounting Guidelines 2005 Edition.
*4: T IBC Corporation was excluded from the scope of consolidation in July 2012 andsubsequently dissolved in January 2013.

n Environmental Conservation Cost
Category
Pollution prevention costs
Business Global environmental
area costs conservation costs
Resource recycling costs
Upstream/downstream costs
Management costs
Research and development costs
Social contribution activity costs
Environmental remediation costs
Total(Millions of yen)

FY2013
Investment
Expenses

FY2012
Investment
Expenses

516

771

257

1,028

113

3,168

345

3,264

10
570
2
80
14
1,219
0
1,872
−
6
37
21
692
7,707
8,399

32
721
−
49
263
1,231
3
1,260
−
8
3
9
903
7,570
8,473

n Environmental Conservation Benefits
Environmental Impact
CO2
Generation of waste products
Water

Comparison with Previous Fiscal Year
17,809 t decrease
14,648 t decrease
320,808 m3 decreasen Economic Benefits of Environmental Conservation Initiatives(Millions of yen)

Item
Revenue

Details
Returns from sale of recycled waste products
Energy cost reductions

Cost reduction

Cost reduction by resource savings (including reductionsin amount of water use and wastewater treatment costs)

Total

72

Toyota Industries Report 2013

Amount
3,347
626
227
4,200

On-Site Verification Sites
Toyota Industries Corporation• Kariya Plant (Textile machinery, compressors)
Nagakusa Plant (Vehicles)
Consolidated subsidiaries in Japan• HANDA Casting Company, Altex Co., Ltd.
Nagao Kogyo Co., Ltd.
Items to be Verified
1. Adequacy of the scope of data collection; validity of datacollection and calculation methods; validity of internalverification
2. Trustworthiness and accuracy of collected/calculated data as
well as data reported to the Head Office; accuracy of methods
reported to the Head Office
Results
1. The verified sites retained original data (evidence) for all
statistics, which were confirmed valid as were the scope andmethod of data collection.
2. All discrepancies found during verification have been corrected
after respective causes have been identified.
3. Considerations of improvements will be made for datacollected using complex collection methods that may result in
calculation errors.