Carbon Neutrality Roadmap

CN Roadmap 2030
Uniting the strength of five teams
to help our customers, business partners,
and society become carbon-free.

Mission

Strategy

Passing on a better global environment
to the children of the future

Growth strategy as a decarbonization
trading company

Our Corporate Philosophy
We will aim to achieve our mission in accordance with our principle of “Living and prospering together with people,
society, and the planet, we aim to be a value-generating corporation that contributes to the creation ofprosperous societies.”

Scope 3 reduction activities and avoided emission businesses are our areas of expertise2019

Seven priority domains

Key-focus
business domains

2030

2050

Economyof Life

Next
Mobility

Hydrogen &Alternative Fuels

Batteries

Reduce Scope 3 emissions+ alphabusiness domain

2023

Scope 3emissions(t-CO2)Africa⬅
Renewable Energy &Energy Management

Absorption removal amount(CCUS*1, etc.)
and offsetting amount

Circular
EconomyLeading circular economy* provider*An economy that maximizes added value
through efficient and recycling-oriented use ofresources at all stages.

Increase avoided emissions forother companies

Vision (Ideal Image)

Avoidedemissionamount(t-CO2)⬅

Toward achieving carbon neutrality, we will break through the center as the top runner and expand our frontline to spanthe entirety of a circular economy.
Finitematerials

Renewables

Renewables flow management

Farming/collection
Biochemical
feedstock

Regeneration

Business expansion

RecycleRefurbish/
Remanufacture

Share

Reuse/
Redistribute

Service provider
Maintain/
Prolong

CascadesWorking on emission reductions by leveraging
our strengths is, in itself, a business opportunity for us

Stock management

Parts
manufacturer

Product
manufacturer

Biosphere

Reduce GHG emissions

Expansionofbusiness
opportunities*2

BiogasConsumer

Anaerobic
digestion

User

Renewable energy &energy management

Collection

Battery

Hydrogen andcarbon neutral fuelResource Circulation& 3R

Economy of Life

New areas & businesses

Extraction ofbiochemical
feedstock

Source: Based on an Ellen MacArthur
Foundation “butterfly diagram”.

*1 Carbon dioxide Capture, Utilization and Storage: Technology to capture, store, and effectively utilize CO2*2 The number of circles represents the number of 5WG（Refer to the next page）and new Scope 3 emission reduction activities, and the size indicates the scale of the business.

Domains ofstrength and 5WG*

As part of our efforts to contribute to the transition toa carbon-free society, our corporate group is engaged
in businesses that support a circular economy at eachstage of the industrial life cycle, which consists ofproducing energy, collecting and coordinating energy,
producing goods, transporting goods, using goods,
processing waste, and reusing goods.
From the fiscal year 2024, we aim to form the“Toyotsu CN Ecosystem” by organically linking thefunctions of each WG as shown in Phase 2 in the
diagram on the right.

RdRE (Road Renewable Energy)

Renewable Energy &Energy Management WG

Investment:
1,000 billion yen

Having renewable energy account for 50% of
our power consumption
Contributing to meeting the renewableenergy needs of major customers
Expanding the introduction of renewableenergy generation

RdBT (Road Battery)

Battery WG

Securing stable rare resources such aslithium
Commercializing raw materials and parts
manufacturingEntering the battery manufacturing business
Creating rebuild, reuse, and recycle
mechanism

CN Strategy Map

Energycreation“Artery” businesses

Energy collection
and coordination

Investment:
450 billion yen

Manufacture of
goods

Phase3*Working group2027-30: CN/CE Network development phase

Phase22024-26: CN eco system formation phase
RdRE

Phase12021-23: Creation phase

Reuse andrecycling

RdEoL
RdCE

“Vein”
businesses
RdCE (Road Circular Economy)

Resource Circulation &3R* WG

Waste
廃棄物
processing
処理する

Investment:
250 billion yen

Centered on the Circular Core, creating
businesses that multiply the effects of circular
economy and carbon neutrality initiatives
Promoting recycling of batteries, metal andresin scrap, renewable energy equipment, andCO2*Rebuild, Reuse, Recycle

RdBT

RdHY

Use ofgoods

RdEoL (Road Economy of Life)

Economy of Life WG

Transport ofgoods

Investment:
100 billion yen

CCUS through agribusiness
Food business renewal by achieving carbon
neutrality
Build a circular economy in the EoL domain

RdHY (Road Hydrogen)Hydrogen &Carbon Neutral Fuel WG

Investment:
200 billion yen

Realizing three large-scale models ofhydrogen and fuel cell utilization (at ports,
in public transportation, and in logistics) at
more than 10 locations
Developing carbon neutral fuels and building supply chains

Investment for the realization of a decarbonized society: Approx. 2 trillion yen by 2030

The investment amount is the total for the 10 years from 2021 to 2030 (including actual results)

From the next page, the key measures for each WG by 2030 and details of Roadmap are introducedOverview of the initiatives of the 5WG
Overview of Initiatives
Renewable Energy &Energy Management WG

To contribute toward the decarbonization of our major
customers and the Toyota Tsusho Group, the Renewable
Energy & Energy Management Working Group will optimize
the knowledge that Toyota Tsusho has developed in thearea of renewable energy creation and will expand thescope of initiatives to the areas of collection andcoordination and transport.
Based on the systems and global market outlook, theworking group will mainly promote on-site and off-site
solar power generation, green tariffs, and trading of
renewable energy certificates to not only have renewableenergy account for 50% of our corporate group’s global

energy consumption but also expand the scope of
initiatives to major customers and the group’s supply
chains and support the initiatives of companies toward
decarbonization. In the general market, the working groupwill not only promote the introduction of renewable energy
power generation in current regions of engagement but
also aim to expand the introduction of renewable energy
power generation on a global basis by expanding regionsof engagement, especially in emerging countries, anddeveloping of new types of power such as offshore windenergy.

Battery WG

The Battery Working Group works across divisions toward
the slogan “Contributing to the achievement of carbon
neutrality by solving issues in the field of batteries, which isthe very key to success for electrification.”
In anticipation of the rapid expansion of electrification, theworking group is focusing on constructing battery supply
chains for local production for local consumption on a
global basis.
Specifically, the working group is advancing initiatives suchas:

①Securing a stable supply of rare resources like lithium②Commercializing the manufacturing of battery materials likecathode and anode electrode materials and peripheral
components③Participating in battery manufacturing businesses in regions
like North America④Creating systems for rebuilding and reusing used batteries⑤Establishing battery recycling schemes Through these
initiatives, the working group aims to address challenges
and promote the widespread adoption of electrified vehicles.

The second area is the building of a supply chain for CN
fuels such as biofuels, hydrogen, and ammonia. Throughthese activities, we will contribute to stakeholders who are
working toward CN and promote the Toyota Tsusho
Group's CN initiatives.

Approach overview
Produce(renewable energy)ManageExpand the introduction ofrenewable energy(General market)

Electricity

Expand the use of renewable energy
Promote cost reductions

Wind power Solar power
generation generation

Hydroelectric
power
generation

Resource
recycling

SupplyDeliver

Hydrogen & Carbon
Neutral Fuel WG
Resource Circulation &3R WG

Taking the trend of carbon neutrality as an opportunity
while envisioning the society of the future, the Resource
Circulation & 3R Working Group will work on creating newvalue by using our experience in the resource recycling
business—which we have been undertaking since the1970s—as a strength. Our focus areas are: Vehicle battery
3R businesses, as vehicle batteries are increasing withelectrification; recycling of renewable energy equipment
such as solar panels, hydrogen tanks, and wind turbine
blades, which are expected to be disposed of in large

quantities in the future; and precious metal recovery fromelectronic waste and plastic material recycling, as
electronic waste and plastic materials are directly linked toresource depletion and social issues.
To undertake initiatives in these new areas, the working
group is establishing the Circular Core which will explore
advanced technologies related to the CE and develop
business models— and taking on the challenge of creatinga recycling-based society as the world’s leading CE
provider.

Economy of Life WG

The first major initiative is carbon capture, utilization andstorage (CCUS) through agribusiness, in which the
Economy of Life Working Group will use our company’s
network of agricultural suppliers in our grain collection
business in Brazil to collect and sell green grain produced
using sustainable farming methods that comply with our
in-house standards. We will also seek to create and sell
carbon credits through forest conservation.
The second major initiative is food business renewal using

the concepts of carbon neutrality and the circular
economy, in which we focus on the manufacturing and saleof foods added with protein alternatives and promote theuse of bioplastics in food packaging at the same time.
The third major initiative is to build a circular economy in
the EoL domain, in which we will aim to develop a
recycling business in the field of apparel, as this fieldcreates a tremendous amount of waste.

Contribute to meeting the renewable energy
needs of major customers

Promote total decarbonization based on thesystems and market outlook of each country

Biomass
power
generation

Promote the decarbonization of
the Toyota Tsusho Group(TTC* Group project)*Toyota Tsusho Corporation

On-site/off-site
solar power

Construct schemes forbattery recycling

In-house power
generation,energy-efficientequipment

Resources

Battery
storage

Electric
vehicleHydrogen

Secure stable resources to meetgrowing demand

Convert 50% of Toyota Tsusho’s worldwide
electricity consumption to renewable energyRawmaterials

Construct supply chains forcommercialization of materials and parts

資源

Batteryutilization

Battery
supplyBattery
manufacturing
Construct optimalbattery supply networks

Creating rebuild and reusemechanism

Create a basic unit model for realizing ahydrogen- based society
Realize large-scale utilization models at more than
10 locations in three sectors

Enter the battery
manufacturing business

Carbon-neutral fuelHydrogen and fuel cell utilization
The Hydrogen & Carbon Neutral Fuel Working Group works
across two broad business areas and focuses on
promoting next-generation energy such as hydrogen andbiofuels.
The first area is the development of fuel cell* usage models
that combine the adoption of fuel cells for various types ofmobility with hydrogen manufacturing and supply.

Support major customers
achieve carbon neutrality

Electricity

DemandExternal sales of fuel cells

Develop carbon-neutral fuel and build supply chains

Striving to achieve the No.1 market
share for FC powertrains in theexternal sales market

Accelerate action centered on bio-derived fuels, etc.

*Fuel Cell

No.1
Ports

Public transportation

Producing biomethanefrom waste

Logistics

Conduct resource circulation froma decarbonization perspective
Taking up recycling challenges（Rare metals etc.)
Development of secondary uses

Create new value throughdecarbonization
Creation of new value
Construction of a reverse supply chain
business platform

CCUS through agribusinessLeading the way to environmentallyfriendly agriculture(Sales of green grain*)
Formation and sales ofcarbon credits in conjunction
with afforestation and reforestation* Grains produced and collected in an environment- friendly manner

ReduceEliminate

Circular Core

Trading and
off-take deals

Plant and industrial
applications

Capture and utilize CO2
Technology development and social implementation of CCU*
Energy recovery from waste, Development of alternative materials*Carbon dioxide capture and utilization:
A technology for capturing and using CO2 before it is emitted into the atmosphere

CreateFood business renewal byachieving carbon neutrality

Build a circular economy in the
EoL domain

Manufacturing and processingof plant-based meat
Conversion of food packaging
materials to biomass plastic
Decarbonization of food processing
processes using new technologies

Realization of a circular
economy in apparel,
which has high environmental impact

5WG Roadmap toward 2030
2021

2022

Renewable Energy &Energy Management WG

Major customers

2023

2024

2025

2026

2027

2028

2029

Contribute to major customers On-site solar power

Contribute to supply chains of major customers
1.Off-site solar power plants 2.Renewable energy menu 3.Environmental value

On-site solar power generation

Energy management

Contribute to meeting renewableenergy needs worldwide

Must Do
Support implementation of
Toyota Tsusho Group projects for achieving
renewable energy usage rate of 50%

2030

1.Off-site joint power plants 2.Green tariffs 3.Renewable energy certificates

General market

Expand business area especially in emerging countries

Expand renewable energy power
generation worldwide

Promote introduction in current regions of engagement

Research & develop new types of generation

Increase in lithium production and refining capacity

Resources

Securement of resources (Lithium, Nickel, etc.) in anticipation of further demand growthBattery WG

Raw materials

Participate in battery materials and parts manufacturing business

Expand global-scale battery materials and component manufacturing business

Battery manufacturing
and supply

Enter in the battery manufacturing business

Increase in capacity and global rollout of battery manufacturing

Battery utilization &resource recycling

Verification of reuse and rebuild model

Global rollout of reuse and rebuild business

Expand recycling business for process waste

Expand end-of-life battery recycling businessHydrogen and
Fuel cell
utilization

Carbon neutral fuels

Hydrogen & Carbon
Neutral Fuel WG

Ports, transportation,and logistics
BiogasAwarded of turn-key equipment orders and establishment of an optimal supply function

FS (feasibility study)*1

Creation of models
Commercialization FS &demonstration preparation

Business feasibility study
Demand development andmodel building

Hydrogen, ammonia
BDF*2 (for ships)

Implementation verification

Infrastructure development & plant construction

Start and expansion of commercial business

Full-scale introduction → Phased expansion

Establishment of in-house value chain

Stable supply of biomass fuelCC*3

Resource Circulation &3R WG

Expansion of factory waste material
recycling business

Expansion of end-of-life battery recycling business

Development of technologies for multi-base mass production
and achieving a high level of quality

Solar Panel Recycling planning

Renewable energy andnew energy

Plant construction, start and expansion of commercial business

Demonstration projects and business feasibility evaluation

Commercialization FS &business feasibility evaluation

Woody biomass
Battery 3Rs

Global rollout

Development of recycling technology

FRP recycling demonstration study (technology and partner selection)
CCU basic technology development

Laboratory and small-

Metals andplastic materials

Expansion of plastic material recycling

ELV PF*4 business

Establishment of ELV business bases in major markets(USA, Europe, China, India, etc.)

Commercialization

Verification
Development of large-scale andmass production

Laboratory and small-scale verification
scale verification

Commercialization

Development of large-scale andmass production

business and electronic components circulation business

Plant verification

Plant verification

Commercialization

Composite plastic, chemical recycling technology development
and commercializationof biomass plastics
Functional expansion and multi-site deployment

Establish ELV-derived recycled material SC

Economy of Life WG

Expand sales channel of green grain

CCUS throughagribusiness

Food business renewal byachieving carbon neutrality

Start carbon credit creation demonstration

Visualization of carbon footprint
Joint sales promotion of biomass food packaging materials
Demonstration of use of decarbonization technologies in food processing

Build a circular economy
in the EoL domain*1 Feasibility Study*2 Bio Diesel Fuel

*3 Circular Core

Carbon credit composition and sales business

Construction of circulation models for major fiber*4 ELV：End of Life Vehicle, PF: platform,

Commercialization of decarbonization technologies in food processing
Expansion of textile-to-textile recycling businessTopics
Toyota
制体
Tsusho進 推）ルラ
Group
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CN
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Neutrality)
ールグ商 通田豊

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Through the five working groups
where our company has strengths,
長 社
we aim to balance business expansion
OFC・O
SC a decarbonized
and the realizationofsociety towards achieving
OTC
carbon neutrality.
門部トーレポーコ他

部進推NC

Various initiatives
being advanced
Promotion
Structureby each WG

Our 5WG, which are striving to contribute toPresident
the
& CEO
長 社
achievement of a decarbonized society, are accelerating various actions.
Here are some examples of advancesin new challenges on the world stage.
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Division

R&3EnergyManagement

Batteries
料燃替代&
ネCirculation
マネエ
3R

Circular Economy
Division
Supply Chain Division

Started the operation of Japan’s largest wind power
generation, transmission, and storage project innorthern Hokkaido

of Life

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solar power generation company in Japan, as awholly owned subsidiary (photo: Terrace Energy
Kumamoto Arao Solar Park)
部本ィテリビモモ

部本ラフンインーリググ

Expanding battery businesses, which are key in the
部本ンョシーュリソルタジデ
popularization of electrified vehicles

デ部本ルイタスフイララMobility Division
Green Infrastructure
Division
RdBT
Battery WG

部本ンョシーュリソルタジデ

Digital Solutions
Division部本ルイタスフイラ

Lifestyle Division

部本カリフアAfrica Division

部本カリフアア

部進推ィテリビモトスクネ

Next Mobility
Development
Department

部進推ィテリビモトスクネ

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Established automotive battery manufacturing
company TBMNC*1 with TMNA*2.The plant will start
operation in 2025 to produce batteries for hybrid
electric vehicles and battery electric vehicles*1 Toyota Motor North America, Inc.
*2 Toyota Battery Manufacturing, North Carolina

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ーcarbon
リテッバneutral
fuelMetal+(Plus) Division

Started production of lithium hydroxide, the main
raw material for lithium-ion batteries, at Toyotsu
Lithium Corporation for the first time in Japan

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Topics
RdHY

Hydrogen & Carbon Neutral Fuel WG

Accelerating the use of hydrogen and alternative fuels in
port operations and logistics

Various initiatives being advancedby each WG
Our 5WG, which are striving to contribute to theachievement of a decarbonized society, are accelerating various actions.
Here are some examples of advances in new challenges on the world stage.

Promoted the implementation and demonstration ofa log-term operational hydrogen utilization model for
port mobility at the Port of Los Angeles

RdRE

Renewable Energy & Energy Management WG

Contributing to customers’ carbon neutrality by utilizing
renewable energy

Started the operation of Japan’s largest wind power
generation, transmission, and storage project innorthern Hokkaido

RdCE

Resource Circulation & 3R WG

Promoting reuse of recovered resources and proper disposal

Planic Co., Ltd. produces high-quality recycledplastic using the latest technologies in a Japan first,
achieving car-to-car recycling*1 using mixed plastics
as raw material

Acquired Terrace Energy Corporation, the largest
solar power generation company in Japan, as awholly owned subsidiary (photo: Terrace Energy
Kumamoto Arao Solar Park)*1 The reuse of resources recovered from vehicles as materials for
manufacturing vehicles

RdBT

Battery WG

Expanding battery businesses, which are key in the
popularization of electrified vehicles

Started production of lithium hydroxide, the main
raw material for lithium-ion batteries, at Toyotsu
Lithium Corporation for the first time in Japan

Established automotive battery manufacturing
company TBMNC*1 with TMNA*2.The plant will start
operation in 2025 to produce batteries for hybrid
electric vehicles and battery electric vehicles*1 Toyota Motor North America, Inc.
*2 Toyota Battery Manufacturing, North Carolina

Relocated and built new hydrogen stations in Aichi
Prefecture to meet the growing demand for hydrogenfor large FC vehicles

RdEoL

Maruti Suzuki Toyotsu India Private Limited
contributes to the reduction of illegal dumping andthe achievement of carbon neutrality and a circular
economy through its ELV proper disposal businessin India

Economy of Life WG

Promoting recycling and contributing to the creationof a recycling-based society

Started initiating efforts in Brazil to create carbon
credits through forest conservation

Entered the textile recycling business of waste
fishing nets, the main cause of marine plastic
pollution, to work toward realizing nylon-to-nylon
fiber recycling

Issue: November 1, 2022, 1st Edition / July 31, 2024, 5th Edition
Issued by and for more details of the contents: CARBON NEUTRALITY PROMOTION DEPARTMENT
For more details of advertisement: CORPORATE COMMUNICATIONS DEPARTMENTCORPORATE BRANDING GROUP